HomeMy WebLinkAboutResolutions - 2014.07.16 - 21393Miscellaneous Resolution 014139 June 11, 2014
BY: Planning and Building Committee, Jim Runetid, Chairperson
IN RE: WATER RESOURCES COMMISSIONER—RESOLUTION TO AUTHORIZE
CITY OF PONTIAC 2014 WATER SUPPLY SYSTEM IMPROVEMENTS CONTRACT
AND CITY OF PONTIAC WATER SUPPLY SYSTEM IMPROVEMENTS BONDS,
SERIES 2014
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, pursuant to Act No. 342, Public Acts of Michigan, 1939, as amended
(hereinafter sometimes referred to as "Act 342"), the Board of Commissioners of the County of
Oakland (the "County"), by Miscellaneous Resolution No. 12140, adopted May 17, 2012,
authorized and directed that there be established a county system of water supply improvements
and services to serve the City of Pontiac (the "City"), said system to be known as the "City of
Pontiac Water Supply System" (hereinafter sometimes referred to as the "System"), and
designated the Oakland County Water Resources Commissioner as the county agency for the
System with all powers and duties with respect thereto as are provided by Act 342; and
WHEREAS, the City is in urgent need of water supply system improvements and
facilities constituting a part of the System described in the form of the proposed contract
hereinafter mentioned in order to promote the health and welfare of the residents thereof, which
water supply improvements and facilities also would benefit the County and its residents, and the
parties to said proposed contract have concluded that such improvements and facilities can be
provided and financed most economically and efficiently by the County through the exercise of
the powers conferred by Act 342, and especially Sections 5a, 5b and 5c thereof; and
WHEREAS, by the terms of Act 342, the County and the City are authorized to enter into
a contract for the acquisition, construction and financing of the water supply system
improvements and facilities to serve the City and for the payment of the cost thereof by the City,
with interest, and the County is then authorized to issue its bonds in one or more series to
provide the funds necessary therefor; and
WHEREAS, there has been submitted to this Board of Commissioners a proposed
contract between the County, by and through the County Water Resources Commissioner,
County Agency, party of the first part, and the City, party of the second part (the "Contract"),
which Contract provides for the acquisition, construction and financing of the water supply
system improvements and facilities to the System (the "Project") and which Contract is
hereinafter set forth in full; and
WHEREAS, there have also been submitted for approval and adoption by this Board of
Commissioners, preliminary plans, specifications and estimates of the cost and period of
usefulness of the water supply system improvements and facilities; and
WTIEREAS, the Board of Commissioners desires to proceed with the Project, the
approval and execution of the Contract to acquire, construct and finance the Project as provided
in the Contract and the issuance of bonds by the County in an aggregate principal amount of not
to exceed $6,894,663 to defray the cost of the Project; and
PLANNING AND BUILDING COMMITTEE
Motion carried unanimously on a roll call vote.
WHEREAS, the Board of Commissioners also has determined to sell the bonds in a
private negotiated sale to the Michigan Finance Authority (the "Authority") as authorized by Act
227, Public Acts of Michigan, 1985, as amended ("Act 227"), in order to enable the Authority to
provide assistance with respect to the Project from the proceeds of the State of Michigan State
Revolving Fund.
THEREFORE, BE IT RESOLVED by the Board of Commissioners of the County of
Oakland, Michigan, as follows:
1. APPROVAL OF PROJECT AND DESIGNATION OF CO -LINTY AGENCY.
This Board of Commissioners by majority vote of its members-elect does hereby approve, under
and pursuant to Act 342, (i) the water supply system improvements and facilities constituting a
part of the System, as specified and to be located as shown in Exhibit A to the Contract, and (ii)
the services provided thereby; that the Project shall serve the City; that the Oakland County
Water Resources Commissioner is hereby designated and appointed as the "County Agency" for
the Project; that the County Agency shall have all the powers and duties with respect to the
Project and the System as are provided by law and especially by Act 342; and that all obligations
incurred by the County Agency with respect to the Project and the System, unless otherwise
authorized by this Board of Commissioners, shall be payable solely from funds derived from the
City as hereinafter provided.
2. PLANS AND SPECIFICATIONS — ESTIMATES OF PERIOD OF
USEFULNESS AND COST. The preliminary plans and specifications for the Project as
contained in Exhibits A and B to the Contract and the estimates of $6,894,663 as the cost thereof
and of 40 years and upwards as the period of usefulness thereof, as submitted to this Board of
Commissioners, are hereby approved and adopted.
3. APPROVAL OF CONTRACT. The City of Pontiac 2014 Water Supply System
Improvements Contract between the County, by and through the County Agency, party of the
first part, and the City, party of the second part, which Contract has been submitted to this Board
of Commissioners, is hereby approved and adopted, and the County Agency is hereby authorized
and directed to execute and deliver the same for and on behalf of the County, in as many
counterparts as may be deemed advisable. The Contract is attached to this Resolution hereto as
"EXHIBIT "1".
4. AUTHORIZATION OF BONDS — PURPOSE. Bonds of the County aggregating
the principal sum to be determined by the County Agency, but not to exceed Six Million Eight
Hundred Ninety-Four Thousand Six Hundred Sixty-Three Dollars ($6,894,663) shall be issued
and sold pursuant to the provisions of Act 342, and other applicable statutory provisions, for the
purpose of defraying all or part of the cost of the Project.
5. BOND DETAILS. The bonds shall be designated "City of Pontiac Water Supply
System Improvements Bonds, Series 2014"; shall be dated the date of delivery thereof; shall be
numbered from 1 upwards; shall be fully registered; shall be in any denomination not exceeding
the aggregate principal amount for each maturity at the option of the bondholder (provided,
however, that so long as the bonds are registered in the name of the Authority, the bonds may be
in the form of a single bond in a denomination equal to the aggregate outstanding principal
amount of the bonds, with an exhibit attached thereto that identifies the annual maturities for the
bonds, and references herein to the "bonds" shall mean that single bond registered in the name of
the Authority); shall bear interest at a rate or rates as determined by the County Agency, from the
date of delivery of the various principal installments as hereinafter described, payable on such
dates as shall be determined by the County Agency; and shall mature on such dates and in such
principal amounts as shall be determined by the County Agency; provided, however, that the
final maturity shall not be later than October 1, 2036.
The bonds are expected to be delivered to the Authority as the initial purchaser thereof in
installments (the "Installments") equal to the amounts advanced from time to time by the
Authority to the County pursuant to the Purchase Contract and the Supplemental Agreement
(each as hereinafter defined).
6. PAYMENT OF PRINCIPAL AND INTEREST. The principal of, premium, if
any, and interest on the bonds shall be payable in lawful money of the United States. So long as
the bonds are owned by the Authority, the bonds are payable as to principal, redemption
premium, if any, and interest at The Bank of New York Mellon Trust Company, N.A., or at such
other place as shall be designated in writing to the County by the Authority (the "Authority's
Depository"). So long as the Authority is the owner of the bonds, the County agrees that it will
deposit with the Authority's Depository payments of the principal of, premium, if any, and
interest on the bonds in immediately available funds by 12:00 noon at least five business days
prior to the date on which any such payment is due, whether by maturity, redemption or
otherwise. If the bonds are not registered in the name of the Authority, the principal of and
premium, if any, on the bonds are payable upon the surrender thereof at the office of the bond
registrar and paying agent and the interest is payable by check or draft mailed by the bond
registrar and paying agent to the registered owner of the bonds at the address appearing on the
registration books of the County kept by the bond registrar and paying agent as of the 15th day of
the month preceding the month in which an interest payment is due.
7. PRIOR REDEMPTION. The bonds shall be subject to redemption prior to
maturity upon such terms and conditions as shall be determined by the County Agency.
8. BOND REGISTRAR AND PAYING AGENT. Until a successor is appointed by
the Board, the County Treasurer shall act as bond registrar and paying agent.
9. EXECUTION, AUTHENTICATION AND DELIVERY OF BONDS. The bonds
shall be executed in the name of the County by the manual or facsimile signatures of the
Chairperson of the Board of Commissioners and the County Clerk and authenticated by the
manual signature of the bond registrar and paying agent or an authorized representative of the
bond registrar and paying agent, and the seal of the County (or a facsimile thereof) shall be
impressed or imprinted on the bonds. After the bonds have been executed and authenticated for
delivery to the Authority as the original purchaser thereof, they shall be delivered by the County
Treasurer to the purchaser upon receipt of the purchase price or upon compliance with the terms
and conditions of the Purchase Contract. Additional bonds bearing the manual or facsimile
signatures of the Chairperson of the Board of Commissioners and the County Clerk and upon
which the seal of the County (or a facsimile thereof) is impressed or imprinted may be delivered
to the bond registrar and paying agent for authentication and delivery in connection with the
exchange or transfer of bonds. The bond registrar and paying agent shall indicate on each bond
the date of its authentication.
10. EXCHANGE AND TRANSFER OF BONDS. Any bond, upon surrender thereof
to the bond registrar and paying agent with a written instrument of transfer satisfactory to the
bond registrar and paying agent duly executed by the registered owner or his duly authorized
attorney, at the option of the registered owner thereof, may be exchanged for bonds of any other
authorized denominations of the same aggregate principal amount and maturity date and bearing
the same rate of interest as the surrendered bond.
Each bond shall be transferable only upon the books of the County, which shall be kept
for that purpose by the bond registrar and paying agent, upon surrender of such bond together
with a written instrument of transfer satisfactory to the bond registrar and paying agent duly
executed by the registered owner or his duly authorized attorney.
Upon the exchange or transfer of any bond, the bond registrar and paying agent on behalf
of the County shall cancel the surrendered bond and shall authenticate and deliver to the
transferee a new bond or bonds of any authorized denomination of the same aggregate principal
amount and maturity date and bearing the same rate of interest as the surrendered bond. If, at the
time the bond registrar and paying agent authenticates and delivers a new bond pursuant to this
section, payment of interest on the bonds is in default, the bond registrar and paying agent shall
endorse upon the new bond the following: "Payment of interest on this bond is in default. The
last date to which interest has been paid is [appropriate date to be inserted]."
The County and the bond registrar and paying agent may deem and treat the person in
whose name any bond shall be registered upon the books of the County as the absolute owner of
such bond, whether such bond shall be overdue or not, for the purpose of receiving payment of
the principal of and interest on such bond and for all other purposes, and all payments made to
any such registered owner, or upon his order, in accordance with the provisions of section 6 of
this Resolution shall be valid and effectual to satisfy and discharge the liability upon such bond
to the extent of the sum or sums so paid, and neither the County nor the bond registrar and
paying agent shall be affected by any notice to the contrary. The County agrees to indemnify
and save the bond registrar and paying agent harmless from and against any and all loss, cost,
charge, expense, judgment or liability incurred by it, acting in good faith and without negligence
hereunder, in so treating such registered owner.
For every exchange or transfer of bonds, the County or the bond registrar and paying
agent may make a charge sufficient to reimburse it for any tax, fee or other governmental charge
required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by
the person requesting such exchange or transfer as a condition precedent to the exercise of the
privilege of making such exchange or transfer.
The bond registrar and paying agent shall not be required to transfer or exchange bonds
or portions of bonds which have been selected for redemption.
11. FORM OF BONDS. The bonds shall be in substantially the following form, with
such additions, deletions and modifications as are approved by the County Agency and
consistent with the terms of this Resolution:
[FORM OF BOND]
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
CITY OF PONTIAC WATER SUPPLY SYSTEM
IMPROVEMENTS BONDS, SERIES 2014
INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE
See Exhibit A
Registered Owner: Michigan Finance Authority
Principal Amount:
The County of Oakland, State of Michigan (the "County"), acknowledges itself
indebted to and for value received hereby promises to pay to the Registered Owner identified
above, or registered assigns, the Principal Amount or so much thereof as shall have been
advanced to the County pursuant to a Purchase Contract between the County and the Michigan
Finance Authority (the "Authority") and a Supplemental Agreement by and among the County,
the Authority and the State of Michigan acting through the Department of Environmental Quality
on the maturity dates and in the amounts set forth in Exhibit A attached hereto, unless redeemed
prior thereto as hereinafter provided, the final payment to be made upon presentation and
surrender of this bond at the office of the County Treasurer, County of Oakland, State of
Michigan, the bond registrar and paying agent, or at such successor bond registrar and paying
agent as may be designated pursuant to the Resolution (as hereinafter defined), and to pay to the
Registered Owner, as shown on the registration books at the close of business on the 15 th day of
the calendar month preceding the month in which an interest payment is due, by check or draft
drawn upon and mailed by the bond registrar and paying agent by first class mail postage prepaid
to the Registered Owner at the registered address, interest at the rate per annum specified above
on such Principal Amount, to the extent advanced to the County pursuant to the Purchase
Contract and the Supplemental Agreement until the County's obligation with respect to the
payment of such Principal Amount is discharged. Interest is payable on the first day of
and in each year, commencing on 1, 201 Principal and interest are
payable in lawful money of the United States of America.
In the event of a default in the payment of principal or interest hereon when due, whether
at maturity, by redemption or otherwise, the amount of such default shall bear interest (the
"additional interest") at a rate equal to the rate of interest that is two percent above the
Authority's cost of providing funds (as determined by the Authority) to make payment on the
bonds of the Authority issued to provide funds to purchase this bond but in no event in excess of
the maximum rate of interest permitted by law. The additional interest shall continue to accrue
until the Authority has been fully reimbursed for all costs incurred by the Authority (as
determined by the Authority) as a consequence of the County's default. Such additional interest
shall be payable on the interest payment date following demand of the Authority. In the event
that (for reasons other than the default in the payment of any municipal obligation purchased by
the Authority) the investment of amounts in the reserve account established by the Authority for
the bonds of the Authority issued to provide funds to purchase this bond fails to provide
sufficient available funds (together with any other funds that may be made available for such
purpose) to pay the interest on outstanding bonds of the Authority issued to fund such account,
the County shall and hereby agrees to pay on demand only the County's pro rata share (as
determined by the Authority) of such deficiency as additional interest on this bond.
During the time funds are being drawn down by the County under this bond, the
Authority will periodically provide the County a statement showing the amount of principal that
has been advanced and the date of each advance, which statement shall constitute prima facie
evidence of the reported information; provided that no failure on the part of the Authority to
provide such a statement or to reflect a disbursement or the correct amount of a disbursement
shall relieve the County of its obligation to repay the outstanding principal amount actually
advanced, all accrued interest thereon, and any other amount payable with respect thereto in
accordance with the terms of this bond.
This bond is issued by the County under and pursuant to and in full conformity with the
Constitution and Statutes of Michigan (especially Act No. 342, Public Acts of 1939, as amended)
and a bond authorizing resolution adopted by the Board of Commissioners of the County (the
"Resolution") for the purpose of defraying part of the cost of acquiring and constructing water
supply system facilities to improve, enlarge and extend the City of Pontiac Water Supply System
to serve the County and the City of Pontiac (the "City"). The bonds are issued in anticipation of
payments to be made by the City, in the aggregate principal amount of
Dollars ($ ), pursuant to a contract between the
County and the City. The full faith and credit of the City have been pledged to the prompt
payment of the foregoing amount and the interest thereon as the same become due. As
additional security the full faith and credit of the County have been pledged for the prompt
payment of the principal of and interest on the bonds of this series. Taxes levied by the City and
the County to pay the principal of and interest on the bonds of this series are subject to
constitutional, statutory and charter tax limitations.
This bond is transferable, as provided in the Resolution, only upon the books of the
County kept for that purpose by the bond registrar and paying agent, upon the surrender of this
bond together with a written instrument of transfer satisfactory to the bond registrar and paying
agent duly executed by the Registered Owner or his attorney duly authorized in writing. Upon
the exchange or transfer of this bond a new bond or bonds of any authorized denomination, in the
same aggregate principal amount and of the same interest rate and maturity, shall be
authenticated and delivered to the transferee in exchange therefor as provided in the Resolution,
and upon payment of the charges, if any, therein provided. Bonds so authenticated and delivered
shall be shall be in any denomination not exceeding the aggregate principal amount for each
maturity.
The bond registrar and paying agent shall not be required to transfer or exchange bonds
or portions of bonds which have been selected for redemption.
This bond is subject to redemption prior to maturity at the option of the County and with
the prior written consent of and upon such terms as may be required by the Authority. That
portion of the bond called for redemption shall not bear interest after the date fixed for
redemption, provided funds are on hand with the bond registrar and paying agent to redeem the
same.
Notwithstanding any other provision of this bond, so long as the Authority is the owner
of this bond, (a) this bond is payable as to principal, premium, if any, and interest at The Bank of
New York Trust Company, NA., or at such other place as shall be designated in writing to the
County by the Authority (the "Authority's Depository"); (b) the County agrees that it will deposit
with the Authority's Depository payments of the principal of, premium, if any, and interest on
this bond in immediately available funds by 12:00 noon at least five business days prior to the
date on which any such payment is due whether by maturity, redemption or otherwise; in the
event that the Authority's Depository has not received the County's deposit by 12:00 noon on the
scheduled day, the County shall immediately pay to the Authority as invoiced by the Authority
an amount to recover the Authority's administrative costs and lost investment earnings
attributable to that late payment; and (c) written notice of any redemption of this bond shall be
given by the County and received by the Authority's Depository at least 40 days prior to the date
on which redemption is to be made.
It is hereby certified, recited and declared that all acts, conditions and things required to
exist, happen and be performed precedent to and in the issuance of the bonds of this series,
existed, have happened and have been performed in due time, form and manner as required by
law, and that the total indebtedness of the County, including the series of bonds of which this
bond is one, does not exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF, the County of Oakland, Michigan, by its Board of
Commissioners, has caused this bond to be executed in its name by facsimile signatures of the
Chairperson of the Board of Commissioners and the County Clerk and its corporate seal (or a
facsimile thereof) to be impressed or imprinted hereon. This bond shall not be valid unless the
Certificate of Authentication has been manually executed by an authorized representative of the
bond registrar and paying agent.
COUNTY OF OAKLAND
By:
Chairperson, Board of Commissioners
[SEAL]
And:
County Clerk
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within mentioned Resolution.
By:
Treasurer, County of Oakland
Bond Registrar and Paying Agent
AUTHENTICATION DATE:
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
{please print or type name, address and taxpayer identification number of transferee) the within
bond and all rights thereunder and hereby irrevocably constitutes and appoints
attorney to transfer the within bond on the books kept for registration thereof, with full power of
substitution in the premises.
Dated:
Signature Guaranteed:
Signature(s) must be guaranteed by an eligible guarantor institution participating in a
Securities Transfer Association recognized signature guarantee program.
EXHIBIT A
The principal amounts and maturity dates applicable to the bond to which this Exhibit A
is attached are as follows:
MATURITY DATE
PRINCIPAL MATURITY
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Based on the schedule provided above, unless revised as provided in this paragraph, repayment
of principal of this bond shall be made until the full amount advanced to the County is repaid. In
the event the Order of Approval issued by the Department of Environmental Quality (the
"Order") approves a principal amount of assistance less than the amount of this bond, the
Authority shall only disburse principal up to the amount stated in the Order. In the event (1) that
the payment schedule described above provides for payment of a total principal amount greater
than the amount of assistance approved by the Order or (2) that less than the principal amount of
assistance approved by the Order is disbursed to the County by the Authority, the Authority shall
prepare a new payment schedule that shall be effective upon receipt by the County.
[END OF BOND FORM]
12. SECURITY. The bonds shall be issued in anticipation of payments to be made by
the City pursuant to the Contract. The bonds shall be secured primarily by the full faith and
credit pledge made by the City in the Contract pursuant to the authorization contained in Act
342. As additional and secondary security the full faith and credit of the County are pledged for
the prompt payment of the principal of and interest on the bonds as the same shall become due.
If the City shall fail to make a payment to the County which is sufficient to pay the principal of,
premium, if any, and interest on the bonds as the same shall become due, then an amount
sufficient to pay the deficiency shall be advanced from the general fund of the County. Taxes
imposed by the County shall be subject to constitutional and statutory limitations.
13. DEFEASANCE. In the event cash or direct obligations of the United States or
obligations the principal of and interest on which are guaranteed by the United States, or a
combination thereof, the principal of and interest on which, without reinvestment, come due at
times and in amounts sufficient to pay, at maturity or irrevocable call for earlier optional
redemption, the principal of, premium, if any, and interest on the bonds, or any portion thereof,
shall have been deposited in trust, this Resolution shall be defeased with respect to such bonds,
and the owners of the bonds shall have no further rights under this Resolution except to receive
payment of the principal of, premium, if any, and interest on such bonds from the cash or
securities deposited in trust and the interest and gains thereon and to transfer and exchange bonds
as provided herein.
14. PRINCIPAL AND INTEREST FUND. There shall be established for the bonds a
Principal and Interest Fund which shall be kept in a separate bank account, provided, however,
that such Principal and Interest Fund may be pooled or combined for deposit or investment
purposes with other debt retirement funds created for nonvoted debt of the County (other than
any special assessment debt). All payments received from the City pursuant to the Contract are
pledged for payment of the principal of and interest on the bonds and expenses incidental thereto
and as received shall be placed in the Principal and Interest Fund.
15. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the
bonds shall be set aside in a construction fund for the Project and used to defray the cost of the
Project in accordance with the provisions of the Contract.
16. APPROVAL OF MICHIGAN DEPARTMENT OF TREASURY — EXCEPTION
FROM PRIOR APPROVAL. The issuance and sale of the bonds shall be subject to the County
obtaining qualified status or prior approval from the Department of Treasury of the State of
Michigan pursuant to Act 34, Public Acts of Michigan, 2001, as amended ("Act 34"), and, if
necessary, the County Treasurer and County Agency are each hereby authorized and directed to
make application to the Department of Treasury for approval to issue and sell the bonds as
provided by the terms of this Resolution and by Act 34. The County Treasurer and County
Agency are authorized to pay any filing fees required in connection with obtaining qualified
status or prior approval from the Department of Treasury. The County Treasurer and County
Agency are further authorized to request such waivers of the requirements of the Department of
Treasury or Act 34 as necessary or desirable in connection with the sale of the bonds.
17. SALE, ISSUANCE, DELIVERY, TRANSFER AND EXCHANGE OF BONDS.
The bonds shall be sold at a private, negotiated sale to the Authority, as authorized by Act 227.
It is hereby determined that this method of sale is in the best interests of the County and is
calculated to provide the County with the lowest cost of borrowing money. The sale shall be
made pursuant to the terms and conditions to be set forth in a Purchase Contract (the "Purchase
Contract") and a Supplemental Agreement (the "Supplemental Agreement"). The County
Agency is authorized to execute and deliver the Supplemental Agreement and the Purchase
Contract in such forms as shall be approved by the County Agency, with such approval to be
evidenced by the County Agency's signature thereon. Notwithstanding any other provision of
this Resolution, the bonds shall be initially sold to the Authority as one bond, numbered 1, in the
full aggregate principal amount of the bonds. The County Agency is authorized to execute one
or more written orders (i) containing the determinations that the County Agency is authorized to
make as provided in this Resolution and (ii) making such changes in the provisions of the bonds
or this Resolution to comply with the requirements of the Authority or otherwise to enable the
bonds to be sold to the Authority. In addition, the Chairperson of the Board of Commissioners,
the Clerk, the Treasurer, the County Agency and other County employees and officials are
authorized to execute and deliver to the Authority the Issuer's Certificate and any such
certificates and documents as the Authority or bond counsel shall require and to do all other
things necessary to effectuate the sale, issuance, delivery, transfer and exchange of the bonds in
accordance with the provisions of this Resolution.
18. REPLACEMENT OF BONDS. Upon receipt by the County Treasurer of proof of
ownership of an unmatured bond, of satisfactory evidence that the bond has been lost, apparently
destroyed or wrongfully taken and of security or indemnity which complies with applicable law
and is satisfactory to the County Treasurer, the County Treasurer may authorize the bond
registrar and paying agent to deliver a new executed bond to replace the bond lost, apparently
destroyed or wrongfully taken in compliance with applicable law. In the event an outstanding
matured bond is lost, apparently destroyed or wrongfully taken, the County Treasurer may
authorize the bond registrar and paying agent to pay the bond without presentation upon the
receipt of the same documentation required for the delivery of a replacement bond. The bond
registrar and paying agent, for each new bond delivered or paid without presentation as provided
above, shall require the payment of expenses, including counsel fees, which may be incurred by
the bond registrar and paying agent and the County in the premises. Any bond delivered
pursuant the provisions of this section 18 in lieu of any bond lost, apparently destroyed or
wrongfully taken shall be of the same form and tenor and be secured in the same manner as the
bond in substitution for which such bond was delivered.
19. TAX COVENANT. The County covenants to comply with all requirements of
the Internal Revenue Code of 1986, as amended, necessary to assure that the interest on the
bonds will be and will remain excludable from gross income for federal income tax purposes.
The County Agency, the County Treasurer, the County Clerk and other appropriate County
officials are authorized to do all things necessary to assure that the interest on the bonds will be
and will remain excludable from gross income for federal income tax purposes.
20. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions
insofar as they may be in conflict herewith are hereby rescinded.
-13-
Mr. Chairperson, on behalf of the Planning & Building Committee, I move adoption of
the foregoing resolution.
PLA'/s111-1NO & BUILDING COMMITTEE
Resolution #14139 June 11,2014
The Chairperson referred the resolution to the Finance Committee. There were no objections.
FISCAL NOTE (MR. #14139) July 16, 2014
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: WATER RESOURCES COMMISSIONER — RESOLUTION TO AUTHORIZE CITY OF
PONTIAC 2014 WATER SUPPLY SYSTEM IMPROVEMENTS CONTRACT AND CITY OF
PONTIAC WATER SUPPLY SYSTEM IMPROVEMENTS BONDS, SERIES 2014
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above
referenced resolution and finds:
1. The resolution approves the City of Pontiac 2014 Water Supply System
Improvements contract and approves the issuance of the City of Pontiac Water
Supply System Improvements Bonds, Series 2014 in accordance with the
provisions of Act 342 of the Public Acts of 1939, as amended.
2. The project consists of constructing a new water main including all connections
and appurtenances for $6,894,663 with a 40 year and upward useful life.
3. The bond issue is not to exceed $6,894,663 and is to be used for the acquisition,
construction and financing the water supply system improvements and facilities
constituting part of the system that will promote the public health and welfare of
the residents.
4. The bonds shall be secured primarily by the full faith and credit pledge by the
City of Pontiac and the Oakland County Board of Commissioners will pledge the
full faith and credit of the County as secondary obligors for the payment of
principal and interest on the Bonds,
5. The Bonds are to be sold in a private negotiated sale to the Michigan Finance
Authority as authorized by Act 227, Public Acts of Michigan, 1985 as amended in
order to utilize proceeds of the State of Michigan State Revolving Fund.
6. The bond issue shall bear an interest rate not to exceed 2.5% per annum, will be
in aggregate principal amounts, will mature in such years and principal amounts
and will be callable prior to maturity as determined necessary by the County
Agency at the time of issue.
7 The statutory limit for County debt is $5,508,460,729 (10% of State Equalized
Value). As of June 2, 2014, the total pledged debt is $701,396,789 or
approximately 1.273% of the S.E.V.
8. The revenues from the City of Pontiac Water Supply System will pay for the
principal and interest on the Bonds.
9. No County general funds shall be appropriated to this Project.
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Middleton absent.
71 11
Resolution #14139 July 16, 2014
Moved by Weipert supported by Jackson the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Gershenson, Gingell, Gosselin, Hatchett, Jackson, Long, Matis, McGillivray,
Middleton, Scott, Spisz, Taub, Weipert, Woodward, Zack, Bosnic, Crawford. (18)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
I HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.558A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on July 16, 2014,
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 16 1h day of July 2014.
Lisa Brown, Oakland County