HomeMy WebLinkAboutResolutions - 2017.08.23 - 23077MISCELLANEOUS RESOLUTION #17238 August 23, 2017
BY: Philip Weipert, Chairperson, Planning and Building Committee
WATER RESOURCES COMMISSIONER — RESOLUTION TO AUTHORIZE EVERGREEN AND
FARMINGTON SEWAGE DISPOSAL SYSTEMS MIDDLEBELT TRANSPORT AND STORAGE
TUNNEL BONDS, SERIES 2017
To the Oakland County Board of Commissioners
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
Resolution No. 7674, adopted September 2, 1976, authorized and directed that there be established by
consolidation and merger a county system of sewage disposal improvements and services to serve
municipalities in the County, said system to be known as the "Evergreen and Farmington Sewage
Disposal Systems" (hereinafter sometimes referred to as the "System"), and designated the Oakland
County Drain Commissioner (now 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 of Farmington Hills, the City of Keego Harbor, the City of Orchard Lake Village and
the Charter Township of West Bloomfield (collectively, the "Municipalities") and the County, by and
through the County Water Resources Commissioner (the "County Agency"), entered into the Evergreen
and Farmington Sewage Disposal Systems Middlebelt Transport and Storage Tunnel Contract dated as
of March 1, 2014 (the "Contract"), pursuant to the provisions of Act 342, and especially Sections 5a, 5b
and 5c thereof with respect to the acquisition, construction and financing of sewage disposal system
improvements and facilities to the System (the "Project"); and
WHEREAS, by the terms of Act 342, the County and the Municipalities are authorized to enter into the
Contract for the acquisition, construction and financing of the Project to serve the Municipalities and for
the payment of the cost thereof by the Municipalities, 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, on September 17, 2014, the County issued its Evergreen and Farmington Sewage Disposal
Systems Middlebelt Transport and Storage Tunnel Bonds, Series 2014, in the aggregate principal amount
of $36,855,000 (the "Series 2014 Bonds") to defray part of the cost of the Project; and
WHEREAS, an estimate of the cost of the Project in the amount of $46,600,000 has been approved by
the Board of Commissioners of the County as the cost thereof and 40 years and upwards has been
approved as the period of usefulness thereof; and
WHEREAS, this Board of Commissioners desires to proceed with the financing of the cost of the Project
not financed by the Series 2014 Bonds or other sources through the issuance of a second series of bonds
of the County in an aggregate principal amount of not to exceed $995,000; and
WHEREAS the County has agreed in a Continuing Covenant Agreement dated as of September 27,
2013, between the County and Bank of America, N.A. (the "Bank of America Continuing Covenant
Agreement") to provide to Bank of America, N.A. certain information pursuant to Article VI, Section 6.05
(f) of the Bank of America Continuing Covenant Agreement which relates to a final official statement or
other offering or disclosure document prepared in connection with an offering of securities by the County.
NOW THEREFORE BE IT RESOLVED by the Board of Commissioners of the County of Oakland,
Michigan, as follows:
1. AUTHORIZATION OF BONDS — PURPOSE. Bonds of the County aggregating the principal sum
of not to exceed Nine Hundred Ninety-Five Thousand Dollars ($995,000) shall be issued and sold
pursuant to the provisions of Act 342, and other applicable statutory provisions, for the purpose of
defraying part of the cost of the Project.
2. BOND DETAILS. The bonds shall be designated "Evergreen and Farmington Sewage Disposal
Systems Middlebelt Transport and Storage Tunnel Bonds, Series 2017," shall be dated as of the
date approved by the County Agency; shall be issued in such aggregate principal amount as
determined by the County Agency; 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 6% per annum as shall be determined by the County
Agency at the time of sale; shall be payable as to interest on such dates as shall be determined
by the County Agency; and shall be serial bonds and/or term bonds and mature in such amounts
PLANNING AND BUILDING COMMITTEE
Motion carried unanimously on a roll call vote with Dwyer absent.
and on such dates and in such years as shall be determined by the County Agency; provided,
however, that the final maturity of the bonds shall not be later than September 1, 2037. If
requested by the original purchaser of the bonds and determined by the County Agency, the
bonds may be issued in the form of a single bond with an exhibit containing the principal maturity
amounts and applicable interest rates and due dates.
3. PAYMENT OF PRINCIPAL AND INTEREST. The principal of and interest on the bonds shall be
payable in lawful money of the United States. Principal shall be payable upon presentation and
surrender of the 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 15th 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. BOOK-ENTRY SYSTEM. Initially, if requested by the original purchaser of the bonds and
determined by the County Agency, one fully-registered bond for each maturity, in the aggregate
amount of such maturity, shall be issued in the name of Cede & Co., as nominee of The
Depository Trust Company ("DTC") for the benefit of other parties (the "Participants") in the book-
entry-only transfer system of DTC. In the event the County determines that it is in the best
interest of the County not to continue the book-entry system of transfer or that the interests of the
holders of the bonds might be adversely affected if the book-entry system of transfer is continued,
the County may notify DTC and the bond registrar and paying agent, whereupon DTC will notify
the Participants of the availability through DTC of bond certificates. In such event, the bond
registrar and paying agent shall deliver, transfer and exchange bond certificates as requested by
DTC and any Participant or "beneficial owner" in appropriate amounts in accordance with this
Resolution. DTC may determine to discontinue providing its services with respect to the bonds at
any time by giving notice to the County and the bond registrar and paying agent and discharging
its responsibilities with respect thereto under applicable law or the County may determine that
DTC is incapable of discharging its duties and may so advise DTC. In either such event, the
County shall use reasonable efforts to locate another securities depository. Under such
circumstances (if there is no successor securities depository), the County and the bond registrar
and paying agent shall be obligated to deliver bond certificates in accordance with the procedures
established by this Resolution. In the event bond certificates are issued, the provisions of this
Resolution shall apply to, among other things, the transfer and exchange of such certificates and
the method of payment of principal of and interest on such certificates. Whenever DTC requests
the County and the bond registrar and paying agent to do so, the County and the bond registrar
and paying agent shall cooperate with DTC in taking appropriate action after reasonable notice to
make available one or more separate certificates evidencing the bonds to any Participant having
bonds certified to its DTC account or to arrange for another securities depository to maintain
custody of certificates evidencing the bonds.
Notwithstanding any other provision of this Resolution to the contrary, so long as any bond is
registered in the name of Cede & Co., as nominee of DTC, all payments with respect to the
principal of, interest on and redemption premium, if any, on such bonds and all notices with
respect to the bonds shall be made and given, respectively, to DTC as provided in the Blanket
Issuer Letter of Representations relating to the bonds. The County Treasurer and the County
Agency are each authorized to sign the Blanket Issuer Letter of Representations on behalf of the
County, in such form as such officer deems necessary or appropriate in order to accomplish the
issuance of the bonds in accordance with law and this Resolution.
Notwithstanding any other provision of this section to the contrary, if the County Agency deems it
to be in the best interest of the County, the bonds shall not initially be issued through the book-
entry-only transfer system of DTC.
5. PRIOR REDEMPTION. The bonds shall be subject to optional and/or mandatory redemption
prior to maturity upon such terms and conditions, or shall not be subject to optional or mandatory
prior to maturity, as shall be determined by the County Agency.
6. BOND REGISTRAR AND PAYING AGENT. The County Treasurer shall designate, and may
enter into an agreement with, a bond registrar and paying agent for the 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
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from time to time as required may designate a similarly qualified successor bond registrar and
paying agent. Notwithstanding any provision of this section to the contrary, if the County Agency
deems it to be in the best interest of the County, the County Treasurer shall serve as bond
registrar and paying agent for the bonds.
7. 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 original purchaser
thereof, they shall be delivered by the County Treasurer to the purchaser upon receipt of the
purchase price. 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.
8. 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 3 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.
9. 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
EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS
MIDDLEBELT TRANSPORT AND STORAGE TUNNEL BOND, SERIES 2017
INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP
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
in the city of , Michigan, the
bond registrar and paying agent, 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 the Date of Original Issue or such later date through which interest shall have been paid
until the County's obligation with respect to the payment of such Principal Amount is discharged at the
rate per annum specified above. Interest is payable on the first day of and in each
year, commencing 1, 201_. Principal and interest are payable in lawful money of the
United States of America. Interest shall be computed on the basis of a 360-day year of twelve 30-day
months.
This bond is one of a series of bonds aggregating the principal sum of
Dollars ($ ) 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
sewage disposal facilities to improve, enlarge and extend the Evergreen and Farmington Sewage
Disposal Systems to serve the County and the City of Farmington Hills, the City of Keego Harbor, the City
of Orchard Lake Village and the Charter Township of West Bloomfield (collectively, the "Municipalities").
The bonds of this series are issued in anticipation of payments to be made by the Municipalities in the
aggregate principal amount of Dollars ($ ), pursuant to the
Evergreen and Farmington Sewage Disposal Systems Middlebelt Transport and Storage Tunnel Contract
dated as of March 1, 2014 among the County and the Municipalities. The full faith and credit of the
Municipalities have been pledged to the prompt payment of the foregoing amount and the interest thereon
as the same become due. Taxes levied by the Municipalities to make such payments are subject to
constitutional, statutory and charter limitations. 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 County to pay the principal of and interest on the bonds of this series are
subject to constitutional and statutory tax limitations.
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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.
MANDATORY PRIOR REDEMPTION
Bonds maturing in the year
interest as follows:
are subject to mandatory prior redemption at par and accrued
Redemption Date
Principal Amount of
Bonds to be Redeemed
Bonds or portions of bonds to be redeemed by mandatory redemption shall be selected by lot.
(REPEAT IF MORE THAN ONE TERM BOND)
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.
Bond Registrar and Paying Agent
By:
Authorized Representative
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.
[END OF BOND FORM]
10. SECURITY, The bonds shall be issued in anticipation of payments to be made by the
Municipalities pursuant to the Contract. The bonds shall be secured primarily by the full faith and
credit pledge made by the Municipalities 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 any of the Municipalities shall fail to make a payment to the County which is sufficient to
pay their respective share of 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.
11. 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.
12. 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). From the proceeds of the sale of the bonds there shall be set aside in the
Principal and Interest Fund any premium as determined by order of the County Agency and any
accrued interest received from the purchaser of the bonds at the time of delivery of the same. All
payments received from the Municipalities 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.
13. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the bonds shall be set
aside in a construction fund or funds for the Project and used to defray the cost of the Project in
accordance with the provisions of the Contract.
14. 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.
15. SALE, ISSUANCE, DELIVERY, TRANSFER AND EXCHANGE OF BONDS. The County Agency
is hereby authorized to determine the principal amount of the bonds to be sold and to determine
the other bond details as described in section 2 hereof and the terms and conditions for
redemption as described in section 5 hereof. In addition, in order to save on costs of issuance
and sell the bonds in an efficient manner, the County Agency is hereby authorized to sell the
bonds at a negotiated sale after solicitation of proposals from one or more prospective
purchasers upon consultation with Municipal Financial Consultants Incorporated, which is hereby
appointed as the County's financial consultant for the bonds. The bonds shall be sold at a price
that is not less than 99% of their par value, as determined by the County Agency. The County
Agency's solicitation may include a written request for proposal in the form determined by the
County Agency. The financial consultant is hereby designated to act for and on behalf of the
County Agency to receive proposals for the purchase of the bonds and to take all other steps
necessary in connection with the sale and delivery thereof. The County Agency is hereby
authorized to determine the low proposer on the bonds and to award the bonds to such low
proposer. The County Agency is hereby authorized to do all other things necessary to effectuate
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authorized to determine the low proposer on the bonds and to award the bonds to such low
proposer. The County Agency is hereby authorized 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.
16. 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 16 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.
17. 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,
18. NOTICE OF ISSUANCE OF BONDS. Within thirty (30) days after the issuance of the bonds,
either (1) a copy of the final official statement or other offering or disclosure document prepared
by the County in connection with the issuance of the bonds or (2) notice that such information has
been filed with the Electronic Municipal Market Access system of the Municipal Securities
Rulemaking Board and is publicly available shall be furnished to Bank of America, N.A. at the
following locations:
Bank of America, N.A.
Mail Code: 14-135-07-28
135 South LaSalle Street
Chicago, IL 60603
Attention: Thomas R. Denes
Bank of America, N.A.
Public Sector Banking Group
Mail Code: MI8-900-02-70
2600 W. Big Beaver Road
Troy, Ml 48084
Attention: Susan Pendygraft,
Senior Credit Support Association
In accordance with the Bank of America Continuing Covenant Agreement, the notices provided
for above shall be in writing and shall be transmitted by e-mail to the following addresses:
ryan.denes@baml.com and susan.pendygraft@baml.com ,
19. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they may be
in conflict herewith are hereby rescinded.
Chairperson, on behalf of the Planning and Building Committee, I move adoption of the foregoing
resolution.
PLANNING & BUILDING COMMITTEE
BLOOMFIELD 9007-427 1870595v2
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FISCAL NOTE (MISC. #17238) August 23, 2017
BY: Commissioner Thomas Middleton, Chairperson, Finance Committee
IN RE: WATER RESOURCES COMMISSIONER — RESOLUTION TO AUTHORIZE EVERGREEN
AND FARMINGTON SEWAGE DISPOSAL SYSTEMS MIDDLEBELT TRANSPORT AND STORAGE
TUNNEL BONDS, SERIES 2017
To The Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI I-C of this Board, the Finance Committee has reviewed the above referenced
resolution and finds:
1. The resolution approves the Evergreen and Farmington Sewage Disposal
Systems Middlebelt Transport and Storage Tunnel Bonds, Series 2017 in
accordance with the provisions of Act 342 of the Public Acts of 1939, as
amended.
2. Miscellaneous Resolution #14141 approved the Evergreen and Farmington
Sewage Disposal Systems Middlebelt Transport and Storage Tunnel Bonds,
Series 2014 in the amount not to exceed $46,600,000 to be sold in a private
negotiated sale to the Michigan Finance Authority to utilize proceeds of the State
of Michigan State Revolving Fund.
3. The Evergreen and Farmington Sewage Disposal Systems Middlebelt Transport
and Storage Tunnel Bonds, Series 2017 is not to exceed $995,000 to finance
costs the State Revolving Fund management deemed as ineligible for the Series
2014 Bonds.
4. The Series 2017 Bonds shall be secured primarily by the full faith and credit
pledge by the City of Farmington Hills, City of Keego Harbor, City of Orchard
Lake Village and the Charter Township of West Bloomfield. 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 Series 2017 Bonds shall bear an interest rate not to exceed 6% 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.
6. The statutory limit for County debt is $6,900,835,221 (10% of State Equalized
Value). As of August 1, 2017, the total pledged debt is $722,103,007 or
approximately 1.046% of the S.E.V.
7. The Series 2017 Bonds for $995,000 will be paid for by the following
Municipalities: City of Farmington Hills 53.1% or $528,345, City of Keego Harbor
2.1% or $20,895, City of Orchard Lake Village 3.2% or $31,840, and Charter
Township of West Bloomfield 41.6% or $413,920. The principal and interest will
be covered by user sewer rates from the respective municipal systems.
8. No County general funds shall be appropriated .t.120roject.
cimmissioner Thomas Middleton, District #4
Chairperson, Finance Committee
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
Resolution #17238 August 23, 2017
Moved by Tietz supported by Zack the resolutions (with fiscal notes attached) on the Consent Agenda be
adopted (with accompanying reports being accepted).
AYES: Crawford, Dwyer, Fleming, Gershenson, Hoffman, Jackson, Kochenderfer, Kowa11, Long,
McGillivray, Middleton, Quarles, Spisz, Taub, Tietz, Weipert, Woodward, Zack, Berman,
Bowman. (20)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda were adopted (with accompanying reports being accepted).
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lAceBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
1, 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 August 23,
2017, 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 23R1 day of August, 2017.
Lisa Brown, Oakland County