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HomeMy WebLinkAboutResolutions - 1994.04.14 - 23967-1 'April 14,-1994' MISCELLANEOUS RESOLUTION #94100 BY: FINANCE COMMITTEE, JOHN P. MCCULLOCH, CHAIRPERSON IN RE: COMPUTER SERVICES - APPROVAL OF LOAN FROM DELINQUENT TAX REVOLVING FUND TO MAINTAIN INVENTORY POOL OF OFFICE AUTOMATION EQUIPMENT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS Computer Services is requesting an additional loan of $914,901 from the Delinquent Tax Revolving Fund (DTRF) to provide an inventory of approximately 315 personal computers and 120 printers in order to provide quick response as requests are approved; and WHEREAS Computer Services will obtain Finance Committee approval prior to installing any of the equipment in the user departments and will bring a resolution for approval by the full Board of Commissioners on a quarterly basis summarizing the appropriate budget amendments in the Computer Services and user departments' budgets; and WHEREAS Computer Services estimates the initial costs to be $914,901 for capital and $250,475 for start-up expenses,; and WHEREAS the annual operating cost is estimated to be $114,363 for 1994 and $290,912 for 1995, which includes maintenance and depreciation expense, partially offset by operational savings identified with the current batch of requests in the amount of $7,726 for 1994 and $18,952 for 1995; and WHEREAS the loan will be repaid over a five-year period with interest expense estimated to be $25,160 for 1994 and $31,259 for 1995. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the Chairperson of the Board to execute the attached Borrowing Agreement in the amount of $914,901 with the County Treasurer as agent of the DTRF. BE IT FURTHER RESOLVED that principal and interest payments made to the DTRF in repayment of this agreement will be accounted for in the Computer Services Operations Fund, fund #63600. BE IT FURTHER RESOLVED that the 1994/95 Biennial Budget is amended as follows to appropriate the interest expense: 1994 1995 General Fund (10100) Expenditures 10100-909-01-00-9920 Office Automation $(25,160) $(31,259) 10100-181-01-00-6360 Computer Services 25,160 31,259 TOTAL $ 0 $ 0 Computer Services Fund (63600) Revenue 181-01-00-2037 Gov't. Operations $ 25,160 $ 31,259 Expense 184-01-00-3418 Interest Expense $ 25,160 $ 31,259 TOTAL $ 0 $ 0 Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINANCE COMMITTEE ---. REVOLVING FUND BORROWING AGREEMENT WHEREAS the County of Oakland is desirous of borrowing monies from the Oakland County Delinquent Tax Revolving Fund, and WHEREAS the Delinquent Tax Revolving Fund Agent has determined sufficient monies are available to loan to the County, THEREFORE, in consideration of agreements setforth below it is hereby agreed by and between the parties as follows: The County will borrow the principal sum of $914,901 from the Delinquent Tax Revolving Fund to be paid back in annual principal and interest payments not to exceed five (5) years. Said payments shall be deducted from the annual Revolving Fund distribution made to the County on or about June 1st of each year. Interest on each payment will be based on the average monthly rate paid during the term of this agreement by the agent of the Delinquent Tax Revolving Fund for that year's outstanding borrowing. The schedule of principal payments will be: Year Principal 1 $ 182,980 2 182,980 3 182,980 4 182,980 5 182,981 Total $ 914,901 It is further agreed that the County may pay off the loan at any time plus accrued interest without penalty. Agent for Revolving Fund Chairperson Board of Commissioners Resolution #94100 March 14, 1994 Moved by McCulloch supported by Oaks the resolution be adopted. AYES: Kingzett, McCulloch, McPherson, Miltner, Moffitt, Oaks, Obrecht, Palmer, Pernick, Powers, Price, Schmid, Taub, Wolf, Aaron, Crake, Dingeldey, Douglas, Garfield, Gosling, Huntoon, Jensen, Johnson, Kaczmar. (24) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. r I I HEREBY,IP; e 1 THE FOREGOING RESOLUTION --- "....- 441f7 407 L Brooks Pa erson, County Executive Date 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 14, 1994 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 14th day /51.--)Apr Lypin D. Allen, County Clerk