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HomeMy WebLinkAboutResolutions - 2018.02.01 - 23245MISCELLANEOUS RESOLUTION #18014 February 1, 2018 BY: Commissioner Thomas Middleton, Chairperson, Finance Committee IN RE: TREASURER/WATER RESOURCES COMMISSIONER — BLOOMFIELD TOWNSHIP CSO DRAINAGE DISTRICT DRAIN REFUNDING BONDS - FULL FAITH AND CREDIT RESOLUTION To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen WHEREAS the Bloomfield Township CSO Drainage District issued its Drain Bonds, Series 2010, dated December 1, 2010 (the "Series 2010 Bonds") on December 16, 2010, in the principal amount of $3,000,000, to defray part of the cost of acquiring and constructing the Bloomfield Township CSO Drain Rehabilitation Project, and this Board of Commissioners, by Miscellaneous Resolution No. 10301 adopted on November 18, 2010, pledged the full faith and credit of the County of Oakland (the "County") for the prompt payment of the principal of and interest on the Series 2010 Bonds; and WHEREAS the Drainage Board for the Bloomfield Township CSO Drain (the "Drainage Board"), intends to issue and sell its bonds, in the aggregate principal amount of not to exceed $2,435,000 (the "Refunding Bonds") to refund all or a portion of the Series 2010 Bonds maturing in the years 2025 and 2031; and WHEREAS the Refunding Bonds will be dated as of such date, will bear interest at such rates not to exceed 6% per annum, will be in the aggregate principal amount, will mature on such dates, not later than April 1, 2031, and in such principal amounts, and will be subject to redemption prior to maturity, as shall be determined by order of the Chairperson of the Drainage Board; and WHEREAS the Drainage Board deems it advisable and necessary to obtain from this Board a resolution pledging the full faith and credit of the County for the payment of the principal of and interest on the Refunding Bonds; and WHEREAS it is in the best interest of the County that the Refunding Bonds be sold in order to achieve debt service savings for the Charter Township of Bloomfield (the "Township"), and the County. NOW THEREFORE BE IT RESOLVED. 1. Pursuant to the authorization provided in Section 474 of the Drain Code of 1956, as amended, the Board of Commissioners of the County hereby pledges irrevocably the full faith and credit of the County for the prompt payment of the principal of and interest on the Refunding Bonds and agrees that, in the event the Township or the County shall fail or neglect to account to the County Treasurer for the amount of any special assessment installment and interest when due, the amount thereof shall be advanced immediately from County funds, and the County Treasurer is directed to make such advancement to the extent necessary. 2. In the event that, pursuant to the pledge of full faith and credit, the County advances out of County funds all or any part of an installment and interest, it shall be the duty of the County Treasurer, for and on behalf of the County, to take all actions and proceedings and pursue all remedies permitted or authorized by law for the reimbursement of such sums so paid. 3. The County Treasurer or the financial consultant, Municipal Financial Consultants Incorporated, is authorized, if necessary to make application to the Department of Treasury for permission to issue and sell the Bonds. 4. The County Treasurer is authorized to approve the circulation of a preliminary and final official statement for the Refunding Bonds, to cause the preparation of those portions of the preliminary and final official statement that pertain to the County, and to do all other things necessary for compliance with Rule 15c2-12 issued under the Securities Exchange Act of 1934, as amended (the "Rule"). The County Treasurer is authorized to execute and deliver such certificates and to do all other things that are necessary to effectuate the sale and delivery of the Refunding Bonds. 5. The County Treasurer is hereby authorized to execute and deliver in the name and on behalf of the County (i) a certificate of the County to comply with the requirements for a continuing disclosure undertaking of the County pursuant to subsection (b)(5) of the Rule and (ii) amendments to such certificate from time to time in accordance with the terms of such certificate (the certificate and any amendments thereto are collectively referred to herein as the "Continuing Disclosure Certificate"). The County hereby covenants and agrees that it will comply with and FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Long absent. Chairperson, on behalf of the Finance Committee, I move adoption of the for9goin-vesolution. A " carry out all of the provisions of the Continuing Disclosure Certificate. The remedies for any failure of the County to comply with and carry out the provisions of the Continuing Disclosure Certificate shall be as set forth therein. Cbmmissioner Thomas Middleton, District #4 Chairperson, Finance Committee Troy 9007-431 1983122v1 BLOOMFIELD TOWNSHIP CSO DRAINAGE DISTRICT Bloomfield Township CSO Drain Refunding Bonds, Series 2018 $2,315,000.00 111111111114111111M • • in ET E.V. is pleased to present this refunding analysis to: BLOOMFIELD TOWNSHIP CSO DRAINAGE DISTRICT Bloomfield Township CSO Drain Refunding Bonds, Series 2018 Table of Contents Report Sources & Uses of Funds Refunding Summary Yearly Savings Summary Refunding Savings Report Comparative Yield Report Summary of Refunded Bonds OAKLAND DR-2018-H I FY: 1 I Mun-EaseElevateMainDb I 16.99v EDi3 I 01/18i2018 1 17:18 Municipal Financial Consultants Inc. BLOOMFIELD TOWNSHIP CSO DRAINAGE DISTRICT Bloomfield Township CSO Drain Refunding Bonds, Series 2018 $2,315,000.00 Sources & Uses of Funds Dated: 02101/2018 Delivered: 02/28/2018 Sources Par amount of bonds Accrued interest Totals: Uses Amount of bonds called. . • . . ....................... „ . „ Accrued interest Underwriter discount ( $7.000) Other issuance costs.. . . . .......................... . Contingency fund Totals: $2,315,000.00 $3,655.31 $2,318,655.31 $2,235,000.00 $3,655.31 $16,205.00 $60,000.00 $3,795.00 $2,318,655.31 • • • • • • • ..................... • 1 • • • , • • OAKLAND DR-2018-H I FY: 1 I Mun-EaseElevatelvlainDbI16. 99v ED8 I 0111812018 I 17:18 Municipal Financial Consultants Inc. BLOOMFIELD TOWNSHIP CSO DRAINAGE DISTRICT Bloomfield Township CSO Drain Refunding Bonds, Series 2018 $2,315,000.00 Refunding Summary Dated: 02/01/2018 I Delivered: 02/28/2018 Dated date Delivery date let coupon date First principal payment Last maturity date 02/01/2018 02/28/2018 10/01/2018 04/01/2019 04/01/2031 Net Interest Cost (N IC) True Interest Cost (TIC) All-Inclusive TIC: Arbitrage Net Interest Cost (ANIC) Arbitrage Yield Limit (AYL) Total Bond Years (delivery date) Average Bond Years (delivery date) Total Bond Years (dated date) Average Bond Years (dated date) Average maturity (8038) 2.3562789% 2.3603497% 2.7480946% 2.2670724% 2.2579999% 17,677,208.333 7.6359431 17,850,833.333 7.7109431 7.6359431 Par amount of bonds $2,315,000.00 $0.00 $2,318,655.31 $404,410.42 $2,719,410.42 Original Issue Premium/Discount Bond proceeds Total interest Total debt service Underwriter spread; 7.000/$1,000 -$18,205,00 Gross savings $152,875.05 $131,706.45 5.8929060% 5.6892634% Present Value Savings: Discounted savings as a percentage of refunded bonds: Discounted savings as a percentage of refunding bonds: OAKLAND DR-2018-H I FY: 1 [ Mun-EaseE1evateMainDb 1 16.99v EDB 101/1812018 117:18 BLOOMFIELD TOWNSHIP CSO DRAINAGE DISTRICT Bloomfield Township CSO Drain Refunding Bonds, Series 2018 $2,315,000.00 Yearly Savings Summary Dated: 02/01/2018 Delivered.' 02/28/2018 Fiscal Year Calendar Date PriOT Debt Semice Ili:fort/44 Debt Service Refund* Savings Discounted Sauinss 2,258000% 2018 10/01/2018 79,821.30 32,491.87 11,074.30 10,900.21 2019 10/01/2019 202,738.18 192,650.00 10,088.18 9,686.65 2020 10/01/2020 203,488.60 190,475.00 13,013.60 12,274.62 2021 10/01/2021 204,072.38 193,075.00 10,997.38 10,130.61 2022 10/01/2022 209,406,18 200,382.50 9,043.67 8,133.60 2023 10/01/2023 209,490.00 197,362.50 12,127.50 10,712.98 2024 10/01/2024 214,323.85 204,062.50 10,261.35 8,858.74 2025 10/01/2025 213,907.73 200,662.50 13,245.23 11,215.04 2026 10/01/2026 217,861.00 200,937.50 10,923.50 9,041.63 2027 10/01/2027 221,078.60 207,831.25 13,247.35 10,748.65 2028 10/01/20213 228,825.20 218,500.00 10,325.20 8,193.54 2029 10/01/2029 231,100.80 218,687.50 12,413.30 9,651.72 2030 10/01/2030 232,999,60 223,437.50 9,562.10 7,276.27 2031 04/01/2031 239,427.40 232,875.00 6,552.40 4,884.19 Total Savings 2,908,540.80 2,719,410.42 162,876.06 131,706.45 1)isconnted ,VapinAs as a Percentage of Relimded Bonds 5.7294 `79 Escrow Yield 2.2585688 Disconnted Sapi, gi. as a Percentage nfReliendingBonds 5.5314 % _Arbitrage Yield Limit (AYL) 2.2579999 OAKLAND DR-2019-H I FY: 1 I ivlun-EaseElevateMeInDb 16.99v EUB I 01119/2019117:19 Municipal Financial Consultants Inc. BLOOMFIELD TOWNSHIP CSO DRAINAGE DISTRICT Bloomfield Township CSO Drain Refunding Bonds, Series 2018 $2,315,000,00 Refunding Savings Report Dated: 02/01/2018 Delivered: 02/28/2018 Calendar Principal Coupon Interest Total Fiscal Total Prior Debt Cumulative Date Payment Rate Payment Debt Service Debt Service Service Savings Savings 10/01/2018 04/01/2019 10/01/2019 04/01/2020 10/01/2020 04/01/2021 10/01/2021 04/01/2022 10/01/2022 04/01/2023 10/01/2023 04/01/2024 10/01/2024 04101/2025 10/01/2025 04/0112026 10/0112026 04/01/2027 10/01/2027 04/01/2028 10101/2028 04/01/2029 10/01/2029 04/01/2030 10/01/2030 04/01/2031 145,000.00 145,000.00 150,000.00 160,000.00 160,000.00 170,000.00 170,000,00 180,000.00 185,000.00 200,000.00 205,000,00 215,300.00 230,000,30 32,491.67 24,366.75 23,281.25 23,281.25 22,193.75 22,193,75 20,881.25 20,881.25 19,481.25 19,481,25 17,881.25 17,861.25 16,181.25 16181.25 14481.25 14,481.25 12,456.25 12,456.25 10,375.00 10,375.00 8,125,00 8,125,00 .5,562.50 5,562.50 2,875,30 2,875,00 32491,67 169,368 75 23,281.25 166,251.25 22,193.75 172,193.75 20,881.25 180,881.25 19,481.25 179,481.25 17,861.25 187,881.25 16,181.25 186,181.25 14,481:25 194,481 25 12,456.25 197,456.25 10,375.00 210 375 00 6,125.02 213,125.00 5,562,50 220,562.50 2,875.00 232, 575.00 32,491.67 192,650,00 190,475.00 193,075,00 200,362.50 197,362.50 204,062.50 200,662.50 206,937,50 207,831.25 218,500,00 218,687.50 223,437.50 232,875.00 79,821,20 202,738.18 203,488,60 204,072.38 209,436.18 209,490.00 214,323.85 213,907,73 217,861.00 221,078.60 228,825.20 231,100,80 232,999.60 239,427.40 47,329.63 10,088,18 13,013.60 10,997.38 9,043.67 12,127.50 10,261.35 13,246,23 10,923.60 13,247.35 10,325.20 12,413.30 9,562.10 6,552.40 47,329.63 57,417.81 70,431.41 81,428.78 90,472.46 102,699.96 112,861.31 126,106.63 137,030.03 150,277.38 160,602.58 173,015.813 182,577.98 189,130.38 1.530 1.500 1 750 1.750 2.000 2.000 2.000 2,250 2.250 2.250 2.500 2,500 2.500 2,315,000.00 404,410,42 2,719,410.42 2,905,540.80 189,130.38 + Accrued Interest -3,655.31 3,655.31 Issuer Interest Due 4/1/18 -39,910.64 2,315,000.00 404,410.42 2,715755.11 2,908,540.80 152,875.05 131,706.45 (Net of Accrued Interest) 6.8929 % 5.6893 % 2.2585688 2.2579999 Present Value Savings discounted at 2,2579999 % Equals Discounted Savings as a Percentage of Refunded Bonds Discounted Savings as a Percentage of Refanding Bands Escrow Yield Arbitrage Yield Limit (AYL) OAKLAND DR-2018-H I FY 1 I Mun-EaseElevatelvlainDb I 16,99v EDS 1 01/18/2015117118 Municipal Financial Consultants Inc. BLOOMFIELD TOWNSHIP CSO DRAINAGE DISTRICT PAPCI Bloomfield Township CSO Drain Refunding Bonds, Series 2018 $2,315,000.00 Comparative Yield Report Dated: 02/01/2018 I Delivered: 02/28/2018 "44"4444**4" Disomted Debi .rereire Colon Period Dale 2 10/1/2018 3 4/1/2019 145,000.00 4 1011/2019 5 4/1/2020 145,00100 6 10/1/2020 7 411/2021 150,00100 8 10/1/2021 9 4/1/2022 161000.00 10 10/1/2022 11 4/112023 160,000,00 12 10/1/2023 13 4/1/2024 170,000.00 14 10/1/2024 15 4/1/2025 170,000,00 16 10/1/2025 17 4/1/2026 180,000,110 18 10/1/2026 19 4/112027 185,000.00 N 10/1/2027 21 4/1/2028 200,000.00 22 10/1/2028 23 4/1/2029 205,000.00 24 10/1/2029 25 4/1/2030 215,090.00 26 10/1/2030 27 4/1/2031 230,000.00 $2,315,000.00 32,491.67 24,368.75 23,281.25 23,281.25 22,193.75 22,193,75 20,881.25 NM .25 19,481.25 19,401.2$ 17,881.25 17,881.25 16,181.25 16,181.25 14,48125 14,481.25 12,456.25 12,456.25 10,375.00 10,375.00 8,125,00 8,125,00 5,562,50 5,562.50 2,875.00 2,875.00 $404,410.42 32,491.67 169,368,75 23,281.25 168,281.25 22,193 75 172,193.75 20,881.25 180,88125 19,481.25 179,481.25 17,881,25 187,881.25 16,181.25 186,181.25 14,481.25 194,481.25 12,456.25 197,456.25 10,375,00 210,375.00 8,125.00 213,125.00 5,562.50 220,562.50 2,875.00 232,875.00 $2,719,410.42 By 77C 2.3603497 32,043.69 165,085.25 22,427.76 160,221.16 20,884.27 160,144.00 19,193.51 164,322.10 17,491.37 159,268.79 15,682,45 162,856,15 13,862.37 157,639.78 12,118.27 160,848.41 10,181.95 159,521.44 8,284.01 166,016.58 6,337.02 164,286.12 4,237.81 166,076,16 2,139,53 171,280.39 $2,302,450.34 By All-ln TIC 2.7480946 31,971.18 164,39671 22,291,50 158,943,22 20,678,08 158,259.61 18,931.39 161,768.03 17,186.57 156,194,11 15,350.29 159,101,93 13,516.91 153,417.31 11,771,12 155,941,82 9,852,48 154,064.35 7,985.33 159,724.61 6,085.19 157,455.75 4,053.85 158,563.14 2,038.83 162,907.04 $2,242,450.34 By An. 2.2579999 32,062.88 165,267.70 22,463.91 160,560.61 20,939.11 160,645,75 19,263.39 165,003.81 17,572,82 160,091.43 15,771,43 163,863,04 13,955.13 158,774.99 12,211.71 162,170.72 10,270.85 160,995.66 8,364.80 167,72644 6,405.30 166,140,24 4,287.80 168,120.51 2,166.96 173,564.32 $2,318,655.31 1.500 1.500 1.750 1,750 2.000 2.000 2.000 2.250 2.250 2.250 2.500 2.500 2.500 Principal Coupon Tnterest Debi Pomo), Rae Payment Setviee TIC l'aget AII-In Ta7i /1YT ,Tar,get Face value of bond issue Accrued interest (4) Original issue premium/discount Underwriter discount (*) Lump sum credit enhancements (-) Other TIC Costs (-) Transferred Proceeds Penalty . . Bond Surety Fee (-) = Target Value 82,315,000.00 $3,655.31 $0.00 (516,205.00) 0.00 N/A N/A N/A 2,302,450.31 $2,315,000.00 $3,655.31 mon (816,205.00) $0.01) 860,009.00 N/A N/A 2,242,450.31 $2,315,000.00 $3,055.31 $0.00 N/A $0.00 N/A $0.00 0.00 2,318,655.31 OAKLAND DR-2018-11 I FY: 1 I Mun-EaseElevaleMainDb I 16.904 EDB 1 01/18/2018 1 17:18 Municipal Financial Consultants Inc. Page 6 BLOOM FIELD TOWNSHIP CSO DRAINAGE DISTRICT Bloomfield Township CSO Drain Refunding Bonds, Series 2018 $2,315,000.00 Summary of Refunded Bonds Dated: 02/01/2018 Delivered: 02/28/2018 Mattirify Coupan Ala!Jelly Call Gill 1:1P, Principal Kale Dale Price Called? Dale 100.000 100.000 100.000 100.000 100,000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100,000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 OAKLAND DR-2010-C Serial Bath 1 2 3 4 5 6 7 8 9 10 11 13 14 15 16 17 18 19 20 100,000.00 105,000,00 105,000.00 110,000.00 110,000.00 115,000.00 1201000.00 125,000.00 130,000.00 135,000.00 145,000.00 150,000.00 160,000.00 165,000.00 175,000.00 185,000.00 200,000.00 210,000,00 220,000.00 235,000.00 4/1/2012 4/1/2013 4/1/2014 4/1/2015 4/1/2016 4/1/2017 4/1/2018 4/1/2019 4/1/2020 4/1/2021 3,333 4/1/2022 3.333 4/1/2023 3.333 4/1/2024 3.333 4/1/2025 3.768 4/1/2026 3.768 4/1/2027 3.768 4/1/2028 3.768 4/1/2029 3,768 4/1/2030 3.768 4/1/2031 04/01/2018 04/01/2018 04/01/2018 04/01/2018 04/01/2018 04/01/2018 04/01/2018 04/01/2018 04/01/2018 04/01/2018 04/01/2018 04/01/2018 04/01/2018 125,000.00 130,000.00 135,000.00 145,000.00 150,000.00 160,000.00 165,000.00 175,000.00 185,000,00 200,000.00 210,000.00 220,000.00 235,000.00 0.957 1.159 1.420 1.652 2.000 2.203 2.580 3.333 3.333 3.333 Bond Rawls: 3,000,000.00 2,236,000.00 Grand Totals: 3,000,000.00 2,235,000,00 OAKLAND DR-2018-H I FY: 1 I Mun-EaseElevateMainDb I 16.99v ED8 01/18/2018117:10 Municipal Financial Consultants Inc. MR MUNICIPAL FINANCIAL MVSZ CONSULTANTS INCORPORATED MEMORANDUM TO: Jim Nash Oakland County Water Resources Commissioner FROM: Steven A. Burke, CFA Municipal Financial Consultants Incorporated DATE: December 21, 2017 RE: Bloomfield Township CSO Drainage District, Bloomfield Township CSO Drain Bonds, Series 2010 County of Oakland, State of Michigan Evergreen-Farmington Sewage Disposal System Bonds, Series 2010 Due to the continuation of low interest rates, we have reviewed the County's outstanding debt and have found that it will be possible to issue refunding bonds to refund both of the captioned bonds maturing in the years 2019 through 2031 on April 1, 2018. This will result in an estimated net savings of at least $400,000 and at least 7.5% of the par value of the bonds to be refunded. This is well within the County's policy for refundings. As you know these bonds are apart of the Recovery Zone Economic Development Program. This program was designed to give the County a rebate of 45% of the interest paid on these bonds. Due to the ongoing sequester, this rate was set at 42.03% for fiscal year 2018. By refunding these bonds the County will no longer have the payment uncertainty that has surrounded this program. Attached hereto please find a copy of our refunding analysis showing the details of the savings. Please let me know if the County would like to issue these refunding bonds and we can put together a timetable for the refunding. If you have any questions, please feel free to call me. Enclosures cc: Anne Vaara, Chief Deputy Water Resources Commissioner Steven Korth, P.E., Manager Sid Lockhart, RE., Chief Engineer OaklandDrain-RefundingMemo-EvergFarm,Bloomfield.docx Resolution #18014 February 1,2018 Moved by Fleming supported by Zack the resolutions (with fiscal notes attached) on the amended Consent Agenda be adopted (with accompanying reports being accepted). AYES: Crawford, Fleming, Gershenson, Gingell, Hoffman, Kochenderfer, Long, McGillivray, Middleton, Quarles, Spisz, Taub, Tietz, Weipert, Woodward, Zack, Berman, Bowman. (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 APPROVI THIS RESOLUTION CHIEF DEPUTY COUNTY EXECUTIVE ACTING PURSUANT TO MCL 45.559A (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 February 1, 2018, 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 1 st day of February, 2018. Lisa Brown, Oakland County