HomeMy WebLinkAboutResolutions - 1993.03.31 - 21704Miscellaneous Resolution No. 93042 March 18, 1993
BY: PLANNING AND BUILDING COMMITTEE
CHARLES E. PALMER, CHAIRPERSON
IN RE: DRAIN COMMISSIONER --
RESOLUTION TO AUTHORIZE THE ISSUANCE OF NOT TO EXCEED
$2,700,000 OAKLAND COUNTY REFUNDING BONDS, SERIES 1993 -C
(PAINT CREEK INTERCEPTOR)
TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, pursuant to the provisions of Act No. 185,
Public Acts of Michigan, 1957, as .flended, the Townships of
Oxford, Orion, Avon (now the City of Rochester Hills) and Oakland
and the Villages of Oxford and Lake Orion (hereinafter referred
to as the "Municipalities") and the County of Oakland (the
"County") have entered into the Clinton-Oakland Sewage Disposal
System Paint Creek Interceptor Contract dated as of January 15,
1969 (said contract as revised hereinafter referred to as the
"Contract"); and
WHEREAS, pursuant to the Contract the County has issued
its Oakland County Sewage Disposal Bonds - Clinton-Oakland System
Paint Creek Interceptor dated as of November 1, 1970 (the "Prior
Bonds") in the original principal amount of $5,340,000 to defray
the cost of the Clinton-Oakland System Sewage Disposal System
Paint Creek Interceptor to serve the Municipalities; and
WHE• , the Prior Bonds were issued in anticipation of
payments to be made to the County by the Municipalities pursuant
to the Contract; and
WHE , the Prior Bonds remain outstanding in the
aggregate principal amount of $2,600,000, mature in various
principal amounts on May 1 in the years 1993 through 2003 and
bear interest at . tes per annum which vary from 6.70% to 7.00%;
and
WHEREAS, Chapter VI of Act No. 202, Public Acts of
Michigan, 1943, as amended ("Act 202") authorizes the County to
refund all or any part of its funded indebtedness; and
WHEREAS, the County Drain Commissioner as County Agency,
(the "County Agency") has recommended that this resolution be
adopted in order to effect the refunding of the Prior Bonds
maturing in the years 1994 through 2003, and this Board of
Commissioners has determined that it is in the best interest of
the Municipalities and the County that such refunding be
undertaken.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
COMMISSIONERS OF THE COUNTY OF OAKLAND:
1. AUTHORIZATION OF BONDS - PURPOSE. Bonds of the
County of Oakland, aggregating the principal sum of not to exceed
Two Million Seven Hundred Thousand Dollars ($2,700,000) (the
"Refunding Bonds") shall be issued and sold pursuant to the
provisions of Act 202, and other applicable statutory provisions,
for the purpose of refunding the Prior Bonds maturing in the
years 1994 through 2003.
2. BOND DETAILS. The Refunding Bonds shall be
designated "Oakland County Refunding Bonds, Series 1993-C (Paint
Creek Interceptor)"; shall be dated as of such date as shall be
approved by the County Agency at the time of sale; shall be
numbered from 1 upwards; shall be fully registered; shall be in
the denomination of $5,000 each or any integral multiple thereof
not exceeding the aggregate principal amount for each maturity at
the option of the purchaser thereof; shall bear interest at a
rate or rates not exceeding 8% per annum to be determined upon
the sale thereof payable on such dates as shall be determined by
the County Agency at the time of sale; and shall mature on such
dates and in such years as shall be determined by the County
Agency at the time of sale.
3. PAYMENT OF PRINCIPAL AND INTEREST. The principal
of and interest on the Refunding Bonds shall be payable in lawful
money of the United States. Principal shall be payable upon
presentation and surrender of the Refunding Bonds to the bond
registrar and paying agent as they severally mature. Interest
shall be paid to the registered owner of each bond as shown on
the registration books at the close of business on the fifteenth
day of the calendar month preceding the month in which the
interest payment is due. Interest shall be paid when due by
check or,draft drawn upon and mailed by the bond registrar and
paying agent to the registered owner at the registered address.
4. PRIOR REDEMPTION. The Refunding Bonds shall be
subject to redemption prior to maturity upon such terms and
conditions as shall be determined by the County Agency at the
time of sale.
5. BOND REGIST'. AND PAYING AGENT. The County
Treasurer shall designate, and may enter into an agreement with,
a bond registrar and paying agent for the Refunding Bonds which
shall be a bank or trust company located in the State of Michigan
which is qualified to act in such capacity under the laws of the
United States of America or the State of Michigan. The County
Treasurer from time to time as required may designate a similarly
qualified successor bond registrar and paying agent.
6. EXECUTION, AUTHENTICATION AND DELIVERY OF BONDS.
The Refunding Bonds shall be executed in the name of the County
by the facsimile signatures of the Chairman of the Board of
Commissioners and the County Clerk and authenticated by the
manual signature of 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
Refunding Bonds. After the Refunding Bonds have been executed
and authenticated for delivery to the original purchaser thereof,
they shall be delivered by the County Treasurer to the purchaser
upon receipt of the purchase price. Additional Refunding Bonds
bearing the facsimile signatures of the Chairman 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 the Refunding Bonds. The bond registrar and paying
agent shall indicate on each Refunding Bond the date of its
authentication.
7. EXCHANGE AND TRANSFER OF BONDS. Any Refunding
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 Refunding 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 Refunding Bond.
Each Refunding 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 Refunding
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 Refunding Bond, the
bond registrar and paying agent on behalf of the County shall
cancel the surrendered Refunding Bond and shall authenticate and
deliver to the transferee a new Refunding Bond or Bonds of any
authorized denomination of the s. w- aggregate principal amount
and maturity date and bearing the same rate of interest as the
surrendered Refunding Bond. If, at the time the bond registrar
and paying agent authenticates and delivers a new Refunding Bond
pursuant to this section, payment of interest on the Refunding
Bonds is in default, the bond registrar and paying agent shall
endorse upon the new Refunding Bond the following: "Payment of
interest on this bond is in default. The last date to which
interest has been paid is ."
The County and the bond registrar and paying agent may
deem and treat the person in whose name any Rofunding Bond shall
be registered upon the books of the County as the absolute owner
of such Refunding Bond, whether such Refunding Bond shall be
overdue or not, for the purpose of receiving payment of the
principal of and interest on such Refunding 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 3 of this resolution shall be valid and effectual to
satisfy and discharge the liability upon such Refunding 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 Refunding 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 Refunding Bonds or portions of
Refunding Bonds which have been selected for redemption.
8. FORM OF BONDS. The Refunding Bonds shall be in
substantially the following form:
INTEREST TURITY DATE DATE OF ORIGINAL ISSUE CUSIP TE
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
OAKLAND COUNTY REFUNDING BOND, SERIES 1993-C
(PAINT CREEK INTERCEPTOR)
Registered Owner
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 set forth above on the
Maturity Date specified above, unless redeemed prior thereto as
hereinafter provided, upon presentation and surrender of this
bond at
the bond registrar and paying agent, or at such successor bond
registrar and paying agent as may be designated pursuant to the
Resolution, and to pay to the Registered Owner, as shown on the
registration books at the close of business on the 15th 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 on such Principal Amount from , 1993 or such
later date through which interest has been paid until the
County's obligation with respect to the payment of such Principal
Amount is discharged, at the rate per ann specified above.
Interest is payable on the first days of and in
each year, commencing on , 19 . Principal and
interest are payable in lawful money of the United States of
America.
;This bond is one of a series of bonds aggregating the
principil si. of Thousand Dollars
($ ) issued by the County under and pursuant to and in
full conformity with the Constitution and Statutes of Michigan
(especially Act No. 202, Public Acts of 1943, as nended) and a
resolution adopted by the Board of Co .issioners of the County
(the "Resolution") for the purpose of refunding all of the
outstanding Oakland County Sewage Disposal Bonds -
Clinton-Oakland System - Paint Creek Interceptor. The bonds of
this series are issued in anticipation of, and the principal of
and interest on the bonds are payable from, moneys to be received
by the County from the Townships of Oxford, Orion and Oakland,
the Villages of Oxford and Lake Orion, and the City of Rochester
Hills (formerly the Township of Avon) (the "Municipalities") in
payment of their respective obligations under a certain contract
dated January 15, 1969 among the County and the Municipalities.
The full faith and credit of each Municipality have been pledged
for the making of its share of such payments. As additional
security for the payment of the principal of and interest on the
bonds of this series the full faith and credit of the County are
hereby pledged. Taxes imposed by the Municipalities and the
County are not subject to limitation as to rate or amount.
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 in the denomination of
$5,000 or any integral multiple thereof 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.
Bonds maturing prior to , are not
subject to redemption prior to maturity. Bonds maturing on and
after , are subject to redemption
prior to maturity at the option of the County, in such order as
shall be determined by the County, on any one or more interest
payment dates on and after Bonds of a
denomination greater than $5,000 may be redeemed in part in
amounts of $5,000 or any integral multiple thereof. If less than
all of the bonds maturing in any year are to be redeemed, the
bonds of portions of bonds to be rede-ned shall be selected by
lot. The redemption price shall bw the par value of the bond or
portion of the bond called to be redeemed plus interest to the
date fixed for redemption and a premium as follows:
1
COUNTY OF 0
(SEAL)
By:
Chairman,
Board of Commissioners
•
By:
County Clerk
of the par value if called for redemption on
or after , but prior to
of the par value if called for redemption on
or after but prior to
of the par value if called for redemption on
or after , but prior to
Not less than thirty days notice of redemption shall be
given to the registered owners of bonds called to be redeemed by
mail to each registered owner at the registered address. Bonds
or portions of bonds called for redemption shall not bear
interest on and after the date fixed for redemption, provided
funds are on hand with the bond registrar and paying agent to
redeem the same.
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 Chairman 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 Certificite of Authentication
has been manually executed by an authorized representative of the
bond registrar and paying agent.
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within
mentioned Resolution.
Bond Registrar and Paying
Agent
By:
Author zed Representative
AUTHENTICATION DATE:
ASSIG NT
For value received, the undersigned hereby sells, assigns and
transfers unto
(please print o
name, address and taxpayer identification n u 'er of transferee)
the within bond and all rights thereunder and does hereby
irrevocably constitute and appoint
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 eligibl guarantor
institution participating in a Securities Transfer Asociation
recognized signature guarantee progr . 31
9. SECURITY. The Refunding Bonds shall be issued in
anticipation of payments to be made by the Municipalities
pursuant to the Contract. The Refunding Bonds shall be secured
primarily by the full faith and credit pledges made by the
Municipalities in the Contract. As additional and secondary
security, the full faith and credit of the County are hereby
pledged for the prompt payment of the principal of and interest
on the Refunding Bonds as the same shall become due. If a
Municipality shall fail to make its payments to the County in
amounts which are sufficient to pay its share of the principal of
and interest on the Refunding 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.
10. PRINCIPAL AND INTEREST FUND. There has been
established for the Prior Bonds a Principal and Interest Fund
which shall be kept in a separate bank account. From the
proceeds of the sale of the Refunding Bonds there shall be set
aside in the Principal and Interest Fund any premium and accrued
interest received from the purchasers at the time of delivery of
the same. All payments received from the Municipalities pursuant
to the Contract are pledged for the payment of the principal of
and interest on the Refunding Bonds and expenses incidental
thereto and as received shall be placed in the Principal and
Interest Fund. The County Treasurer shall transfer moneys in the
Principal and Interest Fund to the bond registrar and paying
agent for the Refunding Bonds as necessary for the payment of the
principal of and interest on the Refunding Bonds.
11. DEFEAS• CE. In the event cash or direct obli-
gations 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 .Hounts sufficient
to pay, at maturity or irrevocable call for earlier optional
redemption, the principal of, premium, if any, and interest on
all or any portion of the Refunding Bonds, shall have been
deposited in trust, this Bond Resolution shall be defeased iith
respect to such Refunding Bonds, and the owners of those
Refunding Bonds shall have no further rights under this Bond
Resolutione- except to receive payment of the principal of,
premium, if any, and interest on such Refunding Bonds from the
cash or ,s- rities deposited in trust and the interest and gains
thereon -And to tr -lsfer and exchange the Refunding Bond - as provided herein.
12. PA - -NT OF ISSUANCE EXPENSES - ESCROW F •. The
remainder of the proceeds of the Refunding Bonds shall be used to
pay the issuance e =nser of the Refunding Bonds and to establish
an escrow fund for the Prior Bonds maturing in the years 1994
through 2003. After the issuance e o=nses have been paid or
provided for the remaining proceeds shall be used to establish an
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escrow fund (the "Escrow Fund") consisting of cash and
investments in direct obligations of, or obligations the
principal of and interest on which arn unconditionally guaranteed
by, the United States of America or other obligations the
principal of and interest on which are fully secured by the
foregoing and used to pay ths principal of, interest on and
redemption premiums on the Prior Bonds maturing in the year 1994
through 2003. The Escrow Fund shall be held by a trustee (the
"Trustee") in trust pursuant to an escrow agreement (the "Escrow
Agreement") which irrevocably shall direct the Trustee to take
all necessary steps to call the Prior Bonds maturing in the years
1994 through 2003 for redemption at such time as shall be
determined in the Escrow Agreement. The County Treasurer is
authorized to select the Trustee and enter into the Escrow
Agreement on behalf of the County. The •lounts held in the
Escrow Fund shall be such that the cash and the investments and
the income received thereon will be sufficient without
reinvestment to pay the principal of, interest on and redemption
premiums on the Prior Bonds maturing in the years 1994 through
2003 when due at maturity or call for redemption as required by
the Escrow Agreement.
13. APPROVAL OF DEPARTMENT OF TREASURY. The issuance
and sale of the Refunding Bonds shall be subject to permission
being granted therefor by the Department of Treasury of the State
of Michigan and the County Agency hereby is authorized and
directed to make application to the Department of Treasury for
permission to issue and sell the Refunding Bonds as provided by
the terms of this resolution.
14. SALE ISSUANCE DELIVERY T". SFER AND EXCHANGE OF
BONDS. The County Agency is authorized to determine the
principal amount of the Refunding Bonds to be sold and to
prescribe the form of the notice of sale for the Refunding Bonds.
The County Agency is authorized to sell the Refunding Bonds in
accordance.with the laws of this state snd to do all things
necessary to effectuate the sale, issuance, delivery, transfer
and exchengs of the Refunding Bonds in accordance with the
provisions of this resolution.
15. REPLACEMENT OF BONDS. Upon receipt by the County
Treasurer of proof of ownership of an unmatured Refunding Bond,
of satisfactory evidence that the bond has been lost, apparently
destroyed or wrongfully taken and of security or indthi.. ity 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 Refunding Bond to
replace the Refunding Bond lost, apparently destroyed or
wrongfully taken in compliance with applicable law. In the svent
an outstanding matured Refunding Bond is lost, apparently
destroysd or wrongfully taken, the County Treasurer msy suthorie ,
-1 0-
the bond registrar and paying agent to pay the Refunding Bond
without presentation upon the receipt of the same documentation
required for the delivery of a replacement Refunding Bond. The
bond registrar and paying agent, for each new Refunding 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 Refunding Bond delivered pursuant
the provisions of this Section 15 in lieu of any Refunding Bond
lost, apparently destroyed or wrongfully taken shall be of the
same form and tenor and be secured in the same manner as the
Refunding Bond in substitution for which such Refunding Bond was
delivered.
16. TAX COVENANT. The County covenants to comply with
all applicable requirements of the Internal Revenue Code of 1986,
as amended necessary to assure that the interest on the Refunding
Bonds will be and will remain excludable from gross income for
federal income tax purposes. The County Agency, the County
Treasurer and other appropriate County officials are authorized
to do all things necessary (including the making of such
covenants of the County as shall be appropriate) to assure that
the interest on the Refunding Bonds will be and will remain
excludable from gross income for federal income tax purposes.
17. OFFICIAL STATEMENT. The County Agency is
authorized to cause the preparation of an official statement for
the Refunding Bonds for purpose of enabling compliance with Rule
15c2-12 issued under the Securities Exchange Act of 1934, as
amended (the "Rule") and to do all other things necessary to
enable compliance with the Rule. After the award of the
Refunding Bonds, the County will provide copies of a "final
official statement" (as defined in paragraph (e)(3) of the Rule)
on a timely basis and in reasonable quantity as requested by the
purchasers to enable the purchasers to comply with paragraph
(b)(4) of the Rule and the rules of the Municipal Securities
Rulemaking Board.
18. CONFLICTING RESOLUTIONS. All resolutions and parts
of resolutions insofar as they may be in conflict herewith are
hereby re -inded.
Mr. Chai
Committee, I move
son, on behalf of the Planning and Building
adoption of the foregoing resolution.
JAE/09007/0248/DS9/2
,
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April 1, 1993
FISCAL NOTE (Misc. #93042)
BY: FINANCE COMMITTEE, JOHN P. MCCULLOCH, CHAIRPERSON
IN RE: DRAIN COMMISSIONER -- RESOLUTION TO AUTHORIZE THE
ISSUANCE OF NOT TO EXCEED $ 2,700,000 OAKLAND COUNTY
REFUNDING BONDS, SERIES 1993-C (PAIN - CREEK INTERCEPTOR)
MISCELLANEOUS RESOLUTION #93042
To The Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-G of this Board, the Finance Committee has
reviewed Miscellaneous Resolution #93042 and finds:
1) The resolution authorizes the issuance of refunding bonds
with the County pledging its full faith and credit as the
secondary obligator.
2) The amount of refunding is being reduced from an estimate
of $2,700,000 to $1,635,000 due to reserves available for
the Village of Oxford, Village of Lake Orion, the City of
Rochester Hills, Orion Township, Oxford Township and
Oakland Township.
3) The aggregate principal amount is not to exceed
$1,635,000 at an interest rate not to exceed 8%.
4) The previous bonds were issued with a principal amount of
$5,340,000 at an average net interest rate of 6.76%.
5) The statutory limit for County debt is $2,814,075,876
(10% of 1992 State Equalized Value). As of February 28,
1993, the outstanding debt is $352,559,474.84 or
approximately 1.3% of the S.E.V. This refunding will
not increase the amount of outstanding debt.
6) No financial impact to county funds is anticipated.
•
FINANCE CCMITTEE
V
NANC\DRAIN\BONDREFU.FN
Resolution #93042 April 1, 1993
Moved by Palmer supported by Jensen the resolution be adopted.
AYES: Moffitt, Oaks, Obrecht, Palmer, Pernick, Powers, Price, Schmid, Taub,
Wolf, Aaron, Crake, Douglas, Garfield, Gosling, Huntoon, Jensen, Johnson, Kaczmar,
Kingzett, Law, McCulloch, McPherson, Miltner. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, 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 April 1,1993 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 1st day of Apn , 1993.
Lyn D. Allen, County Clerk