HomeMy WebLinkAboutResolutions - 1993.08.05 - 22240MISCELLANEOUS RESOLUTION #93153 August 5, 1993
BY:PUBLIC SERVICES COMMITTEE, LAWRENCE A. ()BRECHT, CHAIRPERSON
IN RE:COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT-COMMUNITY
DEVELOPMENT DIVISION - FY 1992 HOME INVESTMENT PARTNERSHIPS PROGRAM
CONTRACT WITH VENTURE, INC.
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, the United States Congress enacted the HOME
Investment Partnership Act, Title II of the Cranston-Gonzalez
National Affordable Housing Act (P.L. 101-625) in 1990; and
WHEREAS, the U.S. Department of Housing and Urban Development
awarded the County of Oakland a $1,410,000 HOME grant for the 1992
program year on May 4, 1992; and
WHEREAS, the Oakland County Board of Commissioners accepted
the grant on June 11, 1992; and
WHEREAS, the federal HOME legislation mandates that at least
15% of HOME funds ($211,500) be allocated to Community Housing
Development Organizations (CHD0s) which are HUD defined nonprofit
organizations that have the capacity to develop affordable housing
for qualified low income persons; and
WHEREAS, the County wishes to allocate additional funds equal
to 10% of the CHDO allocation ($21,150) for CHDO operating
expenses; and
WHEREAS, the County of Oakland has qualified one CHDO,
Venture, Inc., to receive the FY 1992 CHDO set aside; and
WHEREAS, this contract has been reviewed and approved as to
form by the Offices of Corporation Counsel, Management and Budget,
and Risk Management; and
WHEREAS, the Oakland County Community Development Citizens
Advisory Council recommends approval of this contract by a roll
call vote of 13-0.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners be authorized to execute the attached contract with
Venture, Inc., for the total sum of $232,650 to acquire and
rehabilitate existing vacant single family homes or acquire vacant
property and emplace new single family modular homes, not to exceed
six houses, in Royal Oak Township exclusively for subsequent sale
to qualified low income first time home buyers.
Chairperson, on behalf of the Public Services Committee, I
move the adoption of the foregoing resolution.
PUBLIC SERVICES COMMITTEE
COUNTY MICHIGAN
DEPARTMENT OF COMMUNITY
AND ECONOMIC DEVELOPMENT
COMMUNITY DEVELOPMENT Clv ,SION
Ricnard A. Southern. Manager
mommorm nnnn Ziall•Naita n•n•n
UMW
libe L. BROOKS PATTERSON, OAKLAND COUNTY EXECUTIVE
FY 1992 HOME INVESTMENT PARTNERSHIPS PROGRAM
FIRST TIME HOMEBUYERS PROGRAM
CONTRACT BETWEEN
COUNTY OF OAKLAND
AND
VENTURE, INC.
HOME Grant No. : M-92UC-26-0210
Effective Date
HOME Program:
: August 1, 1993 - July 31, 1995
Community Housing Development Organization (CHDO)
First Time Homebuyer Program
County Contact Person: Karry L. Rieth, Chief of Operations, Community
Development Division (313) 858 -0493
Agency Contact Person: Diana L.
858-5190
Stahl, President, Venture, Inc.
EXECUTIVE OFFICE BUILDING • ROOM 112 • 1200 N TELEGRAPH RD DEPT 414 • PONTIAC MI 48341-0414 • (313)858-0493 • FAX (313) 452-2148
FY 1992 HOME INVESTMENT PARTNERSHIPS PROGRAM
CONTRACT BETWEEN
COUNTY OF OAKLAND
AND
VENTURE, INC.
SECTION I. Contract
This Contract is made on the first day of August, 1993 between the County of
Oakland, Office of Community Development, hereinafter designated as the "County",
having its principal office at 1200 North Telegraph Road, City of Pontiac, State
of Michigan, 48341-0414, and Venture, Inc., hereinafter designated as the
"Agency", having its principal office at 196 Oakland Ave., P. O. Box 430598, City
of Pontiac, State of Michigan, 48343-0598.
The effective dates of this Contract shall be from August 1, 1993 to July 31,
1995 and any additional period(s) the "County" and the "Agency" shall agree.
SECTION II. Purpose
The County of Oakland, as the Participating Jurisdiction (PJ) for HOME Investment
Partnerships Program funds available from the U.S. Department of Housing and
Urban Development (HUD), hereby contracts with Venture, Inc. to increase the
level of affordable homeownership for low income households in the Township of
Royal Oak. This contract is executed pursuant to the provisions of Title II of
the Cranston-Gonzalez National Affordable Housing Act of 1990 as amended and
implemented by HUD subject to the requirements of Section 24, Part 92 of the Code
of Federal Regulations (24 CFR et. seq.).
Funds provided by the County will be expended in accordance with the requirements
of 24 CFR, 92.206 (eligible costs). The Agency shall acquire and rehabilitate
existing vacant single family homes or acquire vacant property and emplace new
single family modular homes in Royal Oak Township for subsequent sale to
qualified low income, first time home buyers who must occupy the property as
their principal residence.
A low income purchaser must have a gross annual income that does not exceed 80
percent of median income for Oakland County, adjusted for family size, as
established by HUD and listed in Attachment A.
A first time home buyer is any low income household that has not owned a home
during the three year period immediately prior to purchase. Low income displaced
homemaker and single parent households that have owned a home within the three
year period prior to purchase are exceptions and can qualify as first time home
buyers.
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In consideration of mutual promises and covenants contained herein, the Agency
and County agrees as follows:
SECTION III. The Agency's Responsibilities
The Agency shall comply with all applicable laws, ordinances, codes and
regulations of the federal, state and local governments. The Agency shall expend
HOME First Time Homebuyer Program funds in accordance with all applicable federal
requirements to acquire and rehabilitate existing vacant single family homes or
acquire vacant property and emplace new single family modular homes. The Agency
shall provide a minimum of three and a maximum of six single family dwellings for
sale to low income first time homebuyers.
The Agency shall commit or obligate all HOME funds to specific First Time
Homebuyer projects for individual project set-up in the HOME Cash Management
Information System on or before February 26, 1993 as required by HUD.
The Agency shall complete first time homebuyer projects and expend all funds on
or before July 31, 1995.
The Agency shall undertake HOME first time homebuyer activities within the
boundaries of Royal Oak Township. The Agency shall provide evidence that the
local unit of government, Royal Oak Township approves each proposed project
through letters of support.
The Agency shall hold valid legal title to the property prior to committing HOME
funds for rehabilitation or emplacement activities through the HOME Cash
Management and Information System.
The Agency shall not use HOME funds to subsidize homebuyers in the purchase of
HOME assisted property.
The Agency shall obtain an appraisal for all first time homebuyer projects prior
to or at the time of purchase in order to assess the after rehabilitation value
of the property.
The Agency shall limit projects undertaken with HOME funds to those that will
have an after rehabilitation or new construction appraised value equal to or
below the Section 203(b) single family mortgage limits of $101,250 established
for Oakland County by HUD.
The Agency shall invest no more HOME funds in each project than the HOME per-unit
subsidy for Oakland County as established by HUD and listed in Attachment A.
The Agency shall complete appropriate environmental reviews and or assessments
for each property utilizing HOME funds prior to rehabilitation or new
construction.
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The Agency shall be reimbursed for eligible HOME First Time Homebuyer Program
expenses by Oakland County through the Federal Cash Management and Information
System through the U.S. Department of Treasury. The Agency shall submit to
Oakland County specific project construction documents for each project as listed
in Attachment B. The Agency shall request payments based on a project progress
payment schedule for each project as listed in Attachment B.
The Agency shall convey legal title for each HOME assisted property to a
qualified first time home buyer within twenty-four months from the date of each
project completion. The date of comPletion is the date Oakland County issues
final project payment. If the title is not conveyed to a qualified first time
home buyer within the twenty-four month period stipulated, all Oakland County
HOME funds invested in the property become immediately due and payable by the
Agency to the Oakland County HOME Trust Fund as required by HUD.
The Agency shall sell each property to a low income first time home buyer for a
price that is equal to or greater than the appraised value at the time of
purchase or all Oakland County HOME funds invested in the property become
immediately due and payable by the Agency to the Oakland County HOME Trust Fund.
The Agency shall return proceeds from the sale of the homes as defined by HUD and
Oakland County to the County HOME Investment Trust Fund as program income.
The Agency shall ensure that at the time of initial occupancy, the property meets
all applicable HUD Section 8 Housing Quality Standards, local building code
standards, local rehabilitation or new construction standards and cost-effective
energy conservation and effectiveness standards.
SECTION IV. The County's Responsibilities
The County shall, in consideration for services rendered by the Agency, pay the
Agency a total sum not to exceed Two Hundred Thirty-two Thousand Six Hundred
Fifty Dollars ($232,650) to provide 3-6 houses for sale to qualified first time
home buyers in Royal Oak Township. The Agency may expend up to Twenty-one
Thousand One Hundred Fifty Dollars ($21,150) of the total contract amount for
direct administration of the First Time Homebuyer Program. Administrative
expenses shall be limited to salaries, fringes and mileage expenses directly
incurred to administer the program.
The County shall pay the Agency for eligible costs upon receipt of specified
project and financial documents and in accordance with the Project Progress
Payment Schedule listed in Attachment B.
The County shall review the performance of the Agency in carrying out its
responsibilities through project progress payment inspections and semi-annual
on-site monitoring reviews.
SECTION V. Records and Reports
The Agency shall provide progress and spending performance reports on February 1,
1994, August 1, 1994, February 1, 1995 and August 1, 1995 and comply with any
additional reporting requirements to be specified by the County and federal
regulations.
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The Agency shall ensure an overall management system that maintains effective
control over and accountability for all HOME projects and funds received. The
Agency shall maintain its financial records such that Oakland County HOME funds
are maintained in a separate account distinct from all other asset accounts.
The Agency shall maintain all financial records, project records, supporting
documents, statistical records and all other pertinent records established in
24CFR 92.254, 24CFR 92.58, 24CFR 92.508 and 24CFR 85.42. Records must be
retained for three years after closeout of the HOME program.
The Agency shall comply with the requirements of OMB Circular No. A-122 (Cost
Principals for Nonprofit Organizations) and OMB Circular No. A-110 (Uniform
Administrative Requirements for Agreements with Nonprofit Organizations).
The Agency shall permit audits to be conducted in accordance with 24CFR Part 44
and OMB Circular A-133 (Audits of Institutions of Higher Education and Other
Nonprofit Institutions) and permit Oakland County, HUD and Comptroller General of
the United States access to any pertinent books, documents or other records in
order to make audits and examinations.
The Agency shall provide citizens, public agencies and other interested parties
with reasonable access to records, consistent with applicable state and local
laws regarding privacy and obligations of confidentiality.
SECTION VI. General Terms and Conditions
1. Amendments
The Agency shall obtain prior written approval of the Oakland County HOME
Program coordinator for any amendments including changes of substance in the
scope of activities and changes in the authorized budget for the expenditure
of First Time Homebuyer Program funds.
2. Cost Overruns
The Agency shall be responsible for all cost overruns that exceed the
contract amount unless a contract amendment is obtained from the County.
3. Suspension of Contract
When the Agency has failed to comply with the stipulations, standards, or
conditions, or in the event that HOME funding is no longer available to
Oakland County from the Department of Housing and Urban Development, the
County, on reasonable notice to the Agency may suspend the contract and
prevent further electronic funds transfer or prohibit the Agency from
incurring additional obligations of HOME funds, pending corrective action by
the Agency, resumption of HOME funding from HUD, or a decision to terminate
in accordance with these Terms and Conditions. The County shall allow all
necessary and proper costs which the agency could not reasonably avoid during
the period of suspension.
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I.
4. Termination for Cause
The County may terminate this Contract, in whole or in part, at any time
before the date of completion, whenever it is determined that the Agency has
failed to comply with the conditions of this Agreement. Oakland County shall
promptly notify the Agency in writing of the determination and the reasons
for the termination, together with the effective date. Payments made to
recipients or recapture of funds by the County shall be in accordance with
the legal rights and liabilities of the parties.
5. Termination for Convenience
The County or the Agency may terminate this Agreement in whole, or in part,
when both parties agree that the continuation of the project would not
produce beneficial results commensurate with the further expenditure of
funds. The two parties shall agree upon the termination conditions,
including the effective date and, in the case of partial terminations, the
portion to be terminated. The Agency shall not incur new obligations for the
terminated portion after the effective date, and shall cancel as _many
outstanding obligations as possible. The County shall allow full credit for
the Agency's share of the non-cancelable obligations, properly incurred by
the Agency prior to termination.
6. Religious Activity Prohibited
There shall be no religious worship, instruction, or proselytization as part
of, or in connection with the performance of this Contract.
7. Merger or Integration ,
This Contract constitutes the entire Contract between the County and the
Agency with respect to the subject matter hereof and there are no other or
further written or oral understandings or agreements with respect hereto.
8. Assignment or Delegation
No assignment or delegation of this Contract may be made, in whole or in
part, without the written consent of the County being first obtained except
as subcontracting occurs in performing eligible housing rehabilitation or new
construction activities.
9. Indemnification
The Agency shall indemnify, defend, and hold harmless the County its
employees, officials, volunteers, boards, commissions and agents against
negligence of the Agency. In the event the Agency becomes involved in or is
threatened with litigation relative to this contract and project, the Agency
shall immediately notify the County and the County may enter into such
litigation to protect the interest of the County as they may appear.
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10. Insurance
The Agency, or the Oakland Livingston Human Service Agency, as its agent
under a management agreement, shall maintain during the term of this contract
and any extensions thereof, the following insurance:
a. Worker's Compensation Insurance: The Agency shall procure and maintain,
during the life of this contract, Worker's Compensation Insurance,
including Employer's Liability Coverage, in accordance with all
applicable statutes of the State of Michigan.
b. Commercial General Liability Insurance: The Agency shall procure, and
maintain during the life of this contract, Commercial General Liability
Insurance, on an "Occurrence Basis" with limits of liability not less
than $1,000,000 per occurrence and/or aggregate combined single limit
Personal Injury, Bodily Injury, and Property Damage. Coverage shall
include the following extensions: (a) Contractual Liability; (b)
Products and Completed Operations; (c) Independent Contractors Coverage;
(d) Broad Form General Liability Extensions, or equivalent; (e) Deletion
of all Explosion, Collapse and Underground (XCU) Exclusions, if
applicable.
c. Motor Vehicle Liability: The Agency shall procure and maintain during
the life of this contract Motor Vehicle Liability Insurance, including
Michigan No-Fault Coverages, with limits of liability not less than
$1,000,000 per occurrence combined single limit Bodily Injury and
Property Damage. Coverage shall include all owned vehicles, all
non-owned vehicle and all hired vehicles.
d. Cancellation Insurance: Worker's Compensation Insurance, Commercial
General Liability Insurance and Motor Vehicle Liability Insurance, as
described above, shall include an endorsement stating the following: "It
is understood and agreed that thirty (30) days advance written notice of
cancellation, non-renewal, and/or material change in coverage will be
sent to the County of Oakland, Department of Community Development,
Executive Office Building, 1200 N. Telegraph Road, Pontiac, Michigan,
48341-0414.
e. Proof of Insurance Coverage: The Agency shall provide the County, at the
time contracts are executed, certificates and policies as listed below:
Two (2) copies of Certificate of Insurance for Worker's Compensation
Insurance;
Two (2) copies of Certificate of Insurance for Commercial Liability
Insurance;
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Two (2) copies of Certificate of Insurance for Vehicle Liability
Insurance;
If so requested, certified copies of all policies will be furnished.
Insurance will be maintained with a well-rated insurance company licensed in
the State of Michigan and acceptable to the Oakland County Risk Management
Department. The agency is responsible for all premiums, deductibles,
copayments, uncovered losses and losses in excess of valid coverages required
to be maintained by the agency.
Certificates evidencing such insurance coverage and subsequent renewals must
be presented to and approved by the county prior to any services under this
contract. Evidence of renewal of expiring coverage must also be submitted to
and approved by Oakland County prior to such expiration date.
Certificates must provide for thirty (30) day written notice to the
certificate holder of cancellation of contractor's coverage.
11. Independent Contractor Provision
The relationship of the Agency to the County shall be that of an independent
contractor. No partnership, association, or joint enterprise shall arise
between the parties hereto as a result of any provision of this contract nor
shall any provision herein be construed as making an employee of the Agency
an agent or employee of the County.
12. Disputes
The Agency shall notify the County in writing of its intent to pursue a claim
against the County for breach of any terms of this Contract. No suit may be
commenced by the Agency for breach of this Contract prior to the expiration
of ninety (90) days from the date of such notification.
Within this ninety (90) day period, the Agency at the request of the County
must meet with an appointed representative of the County for the purpose of
attempting to resolve the dispute.
13. Conflict of Interest
The agency shall comply with conflict of interest provision in 24CFR 85.36
and OMB Circular A-110.
14. Reversion of Assets
Upon expiration or termination of the contract, the Agency shall transfer to
the County any HOME funds on hand at the time of expiration and any accounts
receivable attributable to the use of HOME funds.
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SECTION VII. CERTIFICATIONS AND ASSURANCES
The Agency hereby assures and certifies compliance with the statutes, rules,
regulations, and guidelines associated with the acceptance and use of funds
under the HOME First Time Homebuyer Program as implemented pursuant to
regulations contained in 24 CFR Part 92 and as administered by Oakland
County. Such assurances and certifications include, but are not limited to,
the following:
1. The execution of the contract is authorized under State and local statutes,
and the Agency possesses the legal authority to implement the HOME First Time
Homebuyer Program described herein and in accordance with regulations
contained in 24 CFR Part 92 et. seq.
2. The Agency shall implement its HOME First Time Homebuyer Program in
conformance with the requirements of 24 CFR 92.254 pertaining to the
qualification of units assisted under the HOME First Time Homebuyer Program
as affordable housing.
3. The Agency shall implement its HOME First Time Homebuyer Program - in
conformance with the requirements of 24 CFR 92.504(c)(3) to assure that any
program income as defined by HUD and Oakland County shall be returned to
Oakland County HOME Investment Trust Fund.
4. The Agency shall implement its HOME First Time Homebuyer Program in
conformance with the requirements of 24 CFR 92.350 pertaining to equal
opportunity and fair housing.
5. The Agency shall implement its HOME First Time Homebuyer Program in
conformance with the requirements of 24 CFR 92.353 pertaining to
displacement, relocation, and acquisition.
6. The Agency shall implement its HOME First Time Homebuyer Program in
conformance with the requirements of 24 CFR 92.355 pertaining to the testing
for and abatement of lead-based paint in HUD-associated housing.
7. The Agency shall implement its HOME First Time Homebuyer Program in
conformance with the requirements of 24 CFR 92.356 pertaining to conflict of
interest.
8. The Agency shall implement its HOME First Time Homebuyer Program in
conformance with the requirements of 24 CFR 92.358 pertaining to flood
insurance.
9. The Agency shall implement its HOME First Time Homebuyer Program in
conformance with the requirements of 24 CFR 92.504(10) to assure that no
funds available under this agreement are requested until funds are needed for
payment of eligible costs. Further, the amount requested must be limited to
the amount needed.
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10. The Agency shall comply with all other requirements of the HOME First Time
Homebuyer Program which may be applicable to an Agency administering the HOME
First Time Homebuyer program as determined by the County pursuant to the
requirements of 24 CFR 92 et. seq.
11. The Agency shall comply with the Debarment and Suspension requirements of CFR
24, 92.357; that neither it nor its principals is presently debarred,
suspended, proposed for debarment, declared ineligible or voluntarily
excluded from participation from implementing eligible HOME activities.
12. The Agency shall implement its HOME First Time Homebuyer Program in
conformance with federal anti-lobbying requirements.
13. The Agency shall not use any HOME funds, materials, property, or services
contributed by the County to the Agency under this Contract for any partisan
political activity, or to further the election or defeat of any candidate for
public office.
14. The Agency shall administer, in good faith, a policy designed to ensure that
the Agency is free from the illegal use, possession, or distribution of drugs
or alcohol by its beneficiaries.
The Agency, in compliance with the Drug-Free Workplace Act, will prominently
post a drug-free workplace policy statement identical to, or substantially
equivalent to, the model statement included as Attachment C.
VENTURE
6/30/93
KLR/kjf
0 Bedroom
$55,224
3 Bedroom 4 Bedroom
$99,581 $109,306
ATTACHMENT A
FIRST TIME HOMEBUYER PROGRAM
DEFINITION OF LOW INCOME
A low income household must have a gross annual income that does not exceed 80
percent of median income for Oakland County, adjusted for family size, as
established by HUD.
HOUSEHOLD SIZE: 1 2 3 4 5 6 7
80% OF MEDIAN: $26,150 $29,900 $33,600 $37,350 $40,350 $43,350 $46,350 $49,300
VENTURE A
KLR/kjf
6/28/93
HOME MAXIMUM PER-UNIT SUBSIDY FOR OAKLAND COUNTY
BY NUMBER OF BEDROOMS
1 Bedroom 2 Bedroom
$63,303 $76,977
VENTURE
FIRST TIME HOMEBUYER PROGRAM
PROJECT CONSTRUCTION DOCUMENTS AND PROGRESS PAYMENT SCHEDULE
Project Documents
The following documents or information shall be provided by the Agency for each
project assisted with HOME funds.
Specifications
Cost Estimate
Contract
Project Set-up Report
Sworn Statements/Full Unconditional Waivers from each Subcontractor
Minority Contractor/Subcontractor Activity
Local Building Department Permit Verification
Project Progress Payment Schedule
The following progress payment system shall be used to request HOME fund for each
project.
1. A check for half the contract amount can be drawn when 60 percent of the work
has been completed, and has been inspected and approved by a designated
County technician or official.
A second check, for an additional 30 percent of the contract amount, can be
drawn after 100 percent of the work has been completed, except for minor
punch list items; after the work has been inspected and approved by a County
designated technician or official; and after all required waivers and sworn
statements have been property submitted. (In the event the first check was
not drawn by the Agency, a check for 80 percent of the contract price can be
drawn at this stage.)
3. A third check, for the final 20 percent of the contract amount, can be drawn
after all work on minor punch list items has been completed; after a final
inspection and approval by a County designated technician or official; and
after completion, submission, and approval of all required documents. (In
the event either the first or second checks were not drawn previously, a
check for the entire amount outstanding can be drawn at this stage.)
VENTURE B
KLR/kjf
6/29/93
ATTACENT C
DRUG-FREE WORKPLACE POLICY STATEMENT
The Federal Drug-Free Workplace Act of 1988 imposes certain requirements on
and its employees as recipients of federal
grant funds. supports the purpose and goals
of the Act and by this policy, announces its intention to comply with this Act
and make continuing "good faith" efforts to provide a drug-free workplace.
Therefore, it is the policy of that any unlawful
manufacture, distribution, dispensing, possession, or use of a controlled
substance in the workplace is strictly prohibited.
All employees of must abide by the terms of this
policy and must notify their Manager of any criminal drug statute conviction no
later than five (5) days after such conviction. Employees violating this policy
are subject to appropriate personnel/disciplinary action, up to and including
termination, and/or other remedial measures as the individual circumstances
warrant.
is committed to maintaining a drug-free workplace.
All employees are expected to cooperate and give this policy their full support.
VENTURE C
KLR/kjf
6/29/93
Resolution #93153 August 5, 1993
Moved by Obrecht supported by Miltner the resolution be adopted.
AYES: Oaks, Obrecht, Palmer, Pernick, Powers, Price, Schmid, Taub, Wolf,
Aaron, Crake, Dingeldey, Douglas, Garfield, Gosling, Huntoon, Jensen, Johnson,
Kaczmar, Kingzett, Law, McCulloch, McPherson, Miltner, Moffitt. (25)
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 August 5, 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 5th day of Augt.tt 1993,
Lynrt D. Allen, County Clerk