HomeMy WebLinkAboutResolutions - 1994.03.23 - 24179•
Miscellaneous Resolution # 94069 March 24, 1994
BY: PLANNING & BUILDING COMMITTEE,
CHARLES E. PALMER, CHAIRPERSON
IN RE: DRAIN COMMISSIONER--
RESOLUTION TO APPROVE CITY OF ORCHARD LAKE VILLAGE
SEWAGE DISPOSAL SYSTEM 1994 SUPPLEMENTAL CONTRACT
AND TO AUTHORIZE THE ISSUANCE OF BONDS TO DEFRAY
PART OF THE COST OF THE SYSTEM
TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the County of Oakland (the "County") and the
City of Orchard Lake Village (the "City") have entered into the
City of Orchard Lake Village Sewage Disposal System Contract
dated as of November 1, 1989 (the "1989 Contract") pursuant to
the provisions of Act No. 342, Public Acts of Michigan, 1939, as
amended ("(Act 342"); and
WHEREAS, the 1989 Contract provides for the issuance of
bonds by the County in the amount of $9,300,000 to defray the
cost of acquiring and constructing the City of Orchard Lake
Village Sewage Disposal System (the "System"), said bonds to be
secured by the contractual obligation of the City to pay to the
County amounts sufficient to pay the principal of and interest on
the bonds and to pay such paying agent fees and other expenses as
may be incurred on account of the bonds; and
WHEREAS, the Oakland County Sewage Disposal Bonds (City
of Orchard Lake village System) dated September 1, 1990 have been
issued in the principal amount of $2,135,000 to defray part of
the cost of the project; and
WHEREAS, the Oakland County Sewage Disposal Bonds (City
of Orchard Lake Village System), Series 1993 dated March 1, 1993
have been issued in the principal amount of $2,100,000 to defray
part of the cost of the project; and
WHEREAS, this Board of Commissioners has authorized the
issuance of Oakland County Sewage Disposal Bonds (City of Orchard
Lake Village System), Series 1994 in the principal amount of
$5,065,000; and
WHEREAS, a Revised Estimate of Cost of the System in the
amount of $14,800,000 has been prepared and is attached as
Exhibit X to the City of Orchard Lake Village Sewage Disposal
System 1994 Supplemental Contract (the "Supplemental Contract")
hereinafter set forth in full; and
WHEREAS, in order to provide for the issuance of
additional bonds necessary to defray that part of the cost of the
System that exceeds the principal amount of bonds previously
issued or authorized it is necessary for the County and the City
to enter into the Supplemental Contract.
THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF OAKLAND COUNTY, MICHIGAN, as follows:
1. APPROVAL OF REVISED ESTIMATE OF COST. The Revised
Estimate of Cost of the System in the amount of $14,800,000 is
approved and adopted.
2. APPROVAL OF SUPPLEMENTAL CONTRACT. The City of
Orchard Lake Village Sewage Disposal System 1994 Supplemental
Contract dated as of April 1, 1994 between the County, by and
through the County Drain Commissioner, County Agency, party of
the first part, and the City, party of the second part, which
Supplemental Contract has been submitted to this Board of
Commissioners, be and the same is approved and adopted, and the
County Drain Commissioner is authorized and directed to execute
and deliver the same for and on behalf of the County, in as many
counterparts as may be deemed advisable, after the Supplemental
Contract has been executed by the appropriate officials of the
City. The Supplemental Contract reads as follows:
CITY OF ORCHARD LAKE VILLAGE
SEWAGE DISPOSAL SYSTEM 1994 SUPPLEMENTAL CONTRACT
THIS CONTRACT, made and entered into as of the first day
of April, 1994 by and between the COUNTY OF OAKLAND, a county
corporation in the State of Michigan (hereinafter sometimes
referred to as the "County"), by and through its Drain
Commissioner, County Agency, party of the first part, and the
CITY OF ORCHARD LAKE VILLAGE, a city located in the County
(hereinafter sometimes referred to as the "City"), party of the
second part.
WITNESSET H:
WHEREAS, the County and the City, pursuant to the
provisions of Act No. 342, Public Acts of Michigan, 1939, as
amended ("Act 342"), have entered into the City of Orchard Lake
Village Sewage Disposal System Contract dated as of November 1,
1989 (the "1989 Contract") to provide for the acquisition,
construction and financing of the City of Orchard Lake Village
Sewage Disposal System (the "System") at an estimated cost of
$9,300,000; and
WHEREAS, the 1989 Contract was approved by the electors
of the City at an election held on November 7, 1989; and
WHEREAS, a Revised Estimate of Cost of the System in the
amount of $14,800,000 has been prepared and submitted to the
County and the City and is attached hereto as Exhibit X; and
WHEREAS, in order to provide for the issuance of bonds
in an amount in excess of $9,300,000 to finance part of the cost
of the System it is necessary for the parties to enter into this
supplemental contract.
THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE
COVENANTS OF EACH OTHER, THE PARTIES HERETO AGREE THAT THE 1989
CONTRACT SHALL BE SUPPLEMENTED AS FOLLOWS:
1. The Revised Estimate of Cost City of Orchard Lake
Village Sewage Disposal System as set forth on Exhibit X attached
hereto is approved and adopted.
2. The County Agency shall take or cause to be taken
all actions required or necessary, in accordance with Act 342, to
procure the issuance and sale of additional bonds by the County,
in one or more series, in whatever aggregate principal amount
(not exceeding $5,500,000) is necessary to defray that part of
the total cost of the System that exceeds $9,300,000. The bonds
shall be issued in anticipation of, and be payable primarily
from, the payments to be made by the City to the County as
provided in the 1989 Contract and this supplemental contract and
shall be secured secondarily, if so voted by the Board of
Commissioners of the County, by the pledge of the full faith and
credit of the County, and the bonds shall be payable in annual
maturities the last of which shall be not more than forty years
from the date thereof.
3. The City reaffirms its agreement to pay to the
County the total cost of the System (less such funds as may
become available from other sources), which total cost for this
purpose shall include, in addition to the items of the nature set
forth in Exhibit X (represented by the principal amount of the
bonds to be issued by the County plus such funds as may become
available from other sources), all interest payable by the County
on said bonds and all paying agent fees and other expenses and
charges (including the County Agency's administrative expenses)
which are payable on account of said bonds (such fees, expenses
and charges being herein called "bond service charges"). Such
payments shall be made to the County in annual installments which
shall be due and payable at least thirty days prior to the day of
the month specified in the County bonds as the annual principal
maturity date thereof. Such an annual installment shall be so
paid in each year if any principal or non-capitalized interest on
said bonds falls due during the twelve-month period beginning on
such principal maturity date in said year, and the amount of each
installment so due and payable shall be at least sufficient to
pay all such principal and interest thus falling due and all bond
service charges then due and payable. The County Agency, within
thirty days after delivery of each series of County bonds to the
purchaser, shall furnish the City Treasurer with a complete
schedule of the principal and interest maturities thereon, and
the County Agency, at least thirty days before each payment is
due to be made by the City, also shall advise the City Treasurer
of the amount payable to the County on such date. If the City
fails to make any payment to the County when due, the same shall
be subject to a penalty of 1% thereof for each month or fraction
thereof that such amount remains unpaid after due. Failure of
the County Agency to furnish the schedule or give the notice as
above required shall not excuse the City from the obligation to
make payment when due. Such payments shall be made by the City
when due whether or not the System has then been completed or
placed in operation. The foregoing obligations shall apply to
all bonds issued to defray the cost of the System including the
additional bonds to be issued pursuant to this supplemental
contract.
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4. The City, pursuant to the authorization of Section
5a of Act No. 342, hereby pledges its full faith and credit for
the prompt and timely payment of its obligations expressed in
this supplemental contract and each year shall levy a tax in an
amount which, taking into consideration estimated delinquencies
in tax collections, will be sufficient to pay its obligations
under this contract becoming due before the time of the following
year's tax collections: Provided, however, that if at the time
of making its annual tax levy the City shall have on hand in cash
other funds (including but not limited to funds from special
assessments, user charges or connection fees) which have been set
aside and pledged or are otherwise available for the payment of
such contractual obligations falling due prior to the time of the
next tax collection, then the annual tax levy may be reduced by
such amount. Taxes levied by the City for the payment of the
principal of and interest on bonds issued pursuant to this
supplemental contract shall be subject to constitutional tax rate
limitations. The City Council each year, at least 90 days prior
to the final date provided by law for the making of the annual
City tax levy, shall submit to the County Agency a written
statement setting forth the amount of its obligations to the
County which become due and payable under this supplemental
contract prior to the time of the next following year's tax
collections, the amount of the funds which the City has or will
have on hand or to its credit in the hands of the County which
have been set aside and pledged for payment of said obligations
to the County and the amount of the City taxes next proposed to
be levied for the purpose of raising money to meet such
obligations. The County Agency shall review such statement
promptly and, if he finds that the proposed City tax levy is
insufficient, he shall so notify the City Council, and the City
hereby covenants and agrees that it thereupon will increase its
levy to such extent as may be required by the County Agency.
5. Except as it may be specifically modified by this
supplemental contract the 1989 Contract shall remain in full
force and effect and shall apply fully to the obligations of the
parties hereto and to all bonds issued to defray the cost of the
System.
6. This supplemental contract shall become effective
upon its execution by each party hereto and the expiration of 45
days after the date of publication of the notice required by
Section 5b of Act 342: Provided, however, that if, within the 45-
day period, a proper petition is filed with the City Clerk of the
City in accordance with Section 5b of Act 342, then this
supplemental contract shall not become effective until approved
by the vote of a majority of the electors of the City qualified
to vote and voting thereon at a general or special election.
This contract shall terminate forty (40) years from the date
hereof or on such edrlier date as shall be mutually agreed:
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Provided, however, that it shall not be terminated at any time
prior to the payment in full of the principal of and interest on
the County bonds together with all bond service charges
pertaining to said bonds. This contract may be executed in
several counterparts. The provisions of this contract shall
inure to the benefit of and be binding upon the successors and
assigns of the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this
contract to be executed and delivered by the undersigned, being
duly authorized by the respective governing bodies of such
parties, all as of the day and year first above written.
CITY OF ORCHARD LAKE COUNTY OF OAKLAND
VILLAGE
By:
Mayor
By: By:
Clerk County Drain Commissioner
(County Agency)
JAE/09007/0266/FR9/1
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Revised Estimate of Cost
City of Orchard Lake Village r .
Sanitary Sewerage Collection and Disposal System
1) Contracted Services: Construction Cost
Based upon As-Bid Construction Costs
Sub-Total $8,356,532
2) Contracted Services: Project Development
Consulting Engineering:
Basic Design $453,088
Eng. During Const. $51,326
Revisions To Plans $220,615
Resident Engineering $163,560
Construction Staking $206,595
Soil Borings $36,520
Testing Consultants $42,562
Sub-Total $1,174,266
3) Contracted Services: Project Financing
Bond Counsel $113,980
Financial Consultant $41,005
Official Statement $13,900
Bond Rating Fee $23,630
Bond Printing $7,645
Bond Advertisement $4,570
Bond Discount (1.5%) $222,000
Sub-Total $426,730
4) County Services:
Administration $39,840
Engineering $66,400
Right-Of-Way $2,320,000
Construction Inspection $298,790
Soil Erosion Permit $13,810
Sub-Total $2,738,840
5) Contingency $835,652
Sub-Total Estimated Project Cost $13.532.020
6) Project Cost Share - Evergreen1Farmingham S.D.S. P.C.F.
Sections F,G,H, & L $502,000
Permanent Meters & Rehab. $37,542
Segment II $182,450
Segment I $260,988
Capitalized Interest $285,000
Sub-Total $1,267,980
Prepared By: William E. Klockow,P.E.
Feb. 18,1994
Less:
Previous Bonds Authorized
Balance:
Additional Bonds to be Issued
$14.800.000
$9,300,000
$5.500.00Q
Page loll
Total Estimated Project Cost
3. AUTHORIZATION OF BONDS -- PURPOSE. Bonds of the
County aggregating the principal sum of Five Million Five Hundred
Thousand Dollars ($5,500,000) 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
acquiring and constructing the System.
4. BOND DETAILS. The bonds shall be designated
Oakland County Sewage Disposal Bonds (City of Orchard Lake
Village System) Series 1994-B; shall be dated March 1, 1994;
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 November 1, 1994, and
semiannually thereafter on the first days of May and November in
each year; and shall mature on November 1 in each year as
follows:
1996 $190,000
1997 200,000
1998 210,000
1999 220,000
2000 235,000
2001 245,000
2002 255,000
2003 270,000
2004 285,000
2005
2006
2007
2008
2009
2010
2011
2012
2013
$300,000
315,000
335,000
350,000
375,000
395,000
415,000
440,000
465,000
5. 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.
6. PRIOR REDEMPTION. Bonds maturing prior to
November 1, 2003 shall not be subject to redemption prior to
maturity. Bonds maturing on and after November 1, 2003 shall be
subject to redemption prior to maturity upon the terms and
conditions set forth in the form of bond contained in Section 10
hereof.
7. 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
may from time to time as required designate a similarly qualified
successor bond registrar and paying agent.
8. EXECUTION, AUTHENTICATION AND DELIVERY OF BONDS.
The bonds shall be executed in the name of the County by the
facsimile signatures of the Chairperson 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 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 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.
9. 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 the
registered owner's 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 the registered owner's 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
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delivers a new bond pursuant to this section, payment of interest
o- 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
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
the registered owner, or upon the order of the registered owner,
in accordance with the provisions of Section 5 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 the
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.
10. FORM OF BONDS. The bonds shall be in substantially
the following form:
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
OAKLAND COUNTY SEWAGE DISPOSAL BOND
(CITY OF ORCHARD LAKE VILLAGE SYSTEM)
SERIES 1994-B
INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP
March 1, 1994
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 days of May and November in each
year, commencing on November 1, 1994. 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
principal sum of Five Million Five Hundred Thousand Dollars
($5,500,000) 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
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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 the City of
Orchard Lake Village Sewage Disposal System. The bonds of this
series are issued in anticipation of payments to be made by the
City of Orchard Lake Village in the aggregate principal amount of
Five Million Five Hundred Thousand Dollars ($5,500,000) pursuant
to a contract between the County and the City of Orchard Lake
Village dated as of November 1, 1989 and a supplemental contract
dated April 1, 1994. The full Faith and credit of the City of
Orchard Lake Village have been pledged to the prompt payment of
the foregoing amount and the interest thereon as the same become
due. 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
City of Orchard Lake Village for the payment of its obligations
to the County are subject to constitutional tax rate limitations.
Taxes levied by the County to pay the principal of and interest
on the bonds of this series are subject to constitutional tax
limitations.
This bond is transferable, as provided in the Reso-
lution, 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 the Registered Owner's 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 November 1, 2003, are not
subject to redemption prior to maturity. Bonds maturing on and
after November 1, 2003, 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 November 1, 2002. Bonds of a denomination
greater than $5,000 may be partially redeemed in the amount 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 or
portions of bonds to be redeemed shall be selected by lot. The
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redemption price shall be 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% of the par value if called for redemption
on or after November 1, 2002, but prior
to November 1, 2004;
0.5% of the par value if called for redemption
on or after November 1, 2004, but prior
to November 1, 2006;
No premium if called for redemption on or
after November 1, 2006.
Not less than thirty days' notice of redemption shall be
given to the owners of bonds called to be redeemed by mail to the
Registered Owner at the registered address. Bonds or portions of
bonds called for redemption shall not bear interest 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 said 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
(SEAL)
By: By:
County Clerk Chairperson
Board of Commissioners
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 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 eligible guarantor
institution participating in a Securities Transfer Association
recognized signature guarantee program.
11. SECURITY. The bonds shall be issued in
anticipation of payments to be made by the City of Orchard Lake
Village pursuant to the 1989 Contract and the Supplemental
Contract. The bonds shall be secured primarily by the full faith
and credit pledge made by the City of Orchard Lake Village in the
1989 Contract and the Supplemental 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 the City of Orchard Lake
Village shall fail to make payments to the County which are
sufficient to pay the principal of and interest on the bonds as
the same shall become due, an amount sufficient to pay the
deficiency shall be advanced from the general fund of the County.
12. 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 Bond Resolution shall be defeased with respect to
such bonds and the owners of such bonds shall have no further
rights under this Bond 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.
13. 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. From the proceeds of
the sale of the bonds there shall be set aside in the Principal
and Interest Fund any premium and accrued interest received from
the purchaser of the bonds at the time of delivery of the same.
All payments received from the City of Orchard Lake Village
pursuant to the 1989 Contract and the Supplemental 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.
14. CONSTRUCTION FUND. The remainder of the proceeds
of the sale of the bonds shall be set aside in a construction
fund and used to acquire and construct the City of Orchard Lake
Village Sewage Disposal System in accordance with the provisions
of the 1989 Contract.
15. APPROVAL OF MICHIGAN DEPARTMENT OF TREASURY --
EXCEPTION FROM PRIOR APPROVAL. The issuance and sale of the
bonds shall be subject to permission being granted therefor by
the Department of Treasury of the State of Michigan or an
exception from prior approval being granted by the Department of
Treasury and the County Drain Commissioner and the County
Treasurer are each hereby severally authorized to file with the
Department of Treasury a Notice of Intent to Issue an Obligation
with respect to the bonds and to pay, upon the filing of said
notice, the filing fee of $400. If an exception from prior
approval is not granted the County Drain Commissioner or the
County Treasurer shall make application to the Department of
Treasury for permission to issue and sell the bonds as provided
by the terms of this resolution and for approval of the form of
Notice of Sale.
16. REDUCTION OF PRINCIPAL AMOUNT OF BOND ISSUE. If
the County Drain Commissioner shall determine that it is not
necessary to sell bonds in the principal amount of Five Million
Five Hundred Thousand Dollars ($5,500,000), he may by order
reduce the principal amount of bonds to be sold to that amount
deemed necessary. In the event the principal amount of the bond
issue is reduced pursuant to this section, the County Drain
Commissioner shall reduce the amount of bonds maturing in any one
or more years as necessary.
17. 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
Treasurer, the 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 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 17 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.
18. SALE, ISSUANCE, DELIVERY, TRANSFER AND EXCHANGE OF
BONDS. The County Drain Commissioner is authorized to prescribe
the form of notice of sale for the bonds, to sell the bonds at
not less than 99% of par plus accrued interest in accordance with
the laws of this state and to do all things necessary to
effectuate the sale, issuance, delivery, transfer and exchange of
the bonds in accordance with the provisions of this resolution.
The County Drain Commissioner is authorized to cause the
preparation of an official statement for the bonds for purposes
of 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 comply with the Rule. After the award of the
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
successful bidder or bidders to enable such bidder or bidders to
comply with paragraph (b)(4) of the Rule and the rules of the
Municipal Securities Rulemaking Board.
19. 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 exclud ble from gross income for federal
income tax purposes. The County Drain Commissioner and other
appropriate County officials are authorized to do all things
necessary (including the making of covenants of the County) to
assure that the interest on the bonds will be and will remain
excludable from gross income for federal income tax purposes.
20. CONFLICTING RESOLUTIONS. All resolutions and parts
of resolutions insofar as they may be in conflict herewith are
rescinded.
Mr. Chairperson, on behalf of the Planning and Building
Committee, I move the adoption pe-the foregoinl_xes.o4ution.
NING AND BUILDING COMMITTEE
JAE/09007/0266/FS7/2
-12-
March 24, 1994
FISCAL NOTE (Misc. #94069)
BY: FINANCE COMMITTEE, JOHN P. MCCULLOCH, CHAIRPERSON
IN RE: DRAIN COMMISSIONER - RESOLUTION TO APPROVE CITY OF
ORCHARD LAKE VILLAGE SEWAGE DISPOSAL SYSTEM 1994
SUPPLEMENTAL CONTRACT AND TO AUTHORIZE THE ISSUANCE OF
BONDS TO DEFRAY PART OF THE COST OF THE SYSTEM,
MISCELLANEOUS RESOLUTION #94
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 #94069 and finds:
1) The resolution authorizes a supplemental contract to
reflect the revised estimated cost of this project for a
total of $14,800,000.
2) The resolution also authorizes the issuance of additional
sewage disposal bonds with the County pledging full faith
and credit with the City of Orchard Lake Village as the
primary obligor.
3) Previous bond authorization for this project was
$9,300,000. The principal amount of this bond issue is
$5,500,000 to be paid back within 19 years at an interest
rate to be determined by bid, but not exceeding 8% per
annum. Total bond issues for this project would be
$14,800,000.
4) The statutory limit for County debt is $3,008,744,830
(10% of 1993 State Equalized Value). As of February 28,
1994, the outstanding debt is $319,229,031 or
approximately 1.1% of the S.E.V.
5) County funds are not required for this project.
FINANCE COMMITTEE
((( o(c
STEV\DRAIN\ORCHARD4.FN
Resolution #94069 March 24, 1994
Moved by Palmer supported by Wolf the resolution be adopted.
AYES: Schmid, Taub, Wolf, Aaron, Crake, Dingeldey, Douglas, Garfield,
Gosling, Huntoon, Jensen, Johnson, Kaczmar, Kingzett, Law, McCulloch, McPherson,
Miltner, Oaks, Obrecht, Palmer, Pernick, Powers. (23)
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 March 24, 1994 with the original record
thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and a xed the seal ofnhe
01) County of Oakland at Pontiac, Michigan this 24th day of/ arch --- . , ......‘44...60,
Lynn/D. Allen, County Clerk