HomeMy WebLinkAboutResolutions - 1995.05.25 - 24566Miscellaneous Resolution 195158 May 25, 1995
BY: PLANNING & BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON
RE: DRAIN COMMISSIONER-AUTHORIZATION FOR ISSUANCE OF sams TO DEFRAY PART OF
THE COST OF SEWAGE DISPOSAL IMPROVEMENTS TO THE OAKLAND COUNTY SEWAGE DISPOSAL
SYSTEM (WHITE LAKE TOWNSHIP EXTENSIONS -- UNION LAKE ROAD IMPROVEMENTS)
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS, the County of Oakland (the "County") and the Charter
Township of White Lake (the "Township") have entered into the Oakland County
Sewage Disposal System (White Lake Township Extensions -- Union Lake Road
Improvements) Contract dated as of August 1, 1992 (the "Contract'), pursuant to
the provisions of Act No. 342, Public Acts of Michigan, 1939, as amended ("Act
342"); and
WHEREAS, the Contract provides for the issuance of bonds in one or
more series by the County to defray all or part of the cost of the sewage
disposal improvements to the Oakland County Sewage Disposal System (White Lake
Township Extensions -- Union Lake Road Improvements) as described in the Contract
(the "Project"), said bonds to be secured by the contractual obligation of the
Township 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, it is in the best interest of the County of Oakland that a
series of bonds be issued to defray part of the cost of the Project as requested
by a resolution adopted by the Township Board of the Township on April 25, 1995.
THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND
COUNTY, MICHIGAN, as follows:
1. AUTHORIZATION OF PTIRPOSF Bonds of the County aggregating
the principal sum of Seven Hundred Twenty-Five Thousand Dollars ($725,000) 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 Project.
2. BOD DETAILS. The bonds shall be designated "Oakland County Sewage
Disposal System (White Lake Township) Bonds, Series 1995A"; shall be dated
July 1, 1995; 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 8V per
annum to be determined upon the sale thereof payable on May 1, 1996, and
semiannually thereafter on the first days of May and November in each year; and
shall mature on May 1 in each year as fol_ows:
AMOUNT YEAZ aNguNT
1997 $10,000 2007 $35,000
1998 15,000 2008 40,000
1999 15,000 2009 40,000
2000 20,000 2010 45,000
2001 25,000 2011 50,000
2002 25,000 2012 50,000
2003 30,000 2013 50,000
2004 30,000 2014 55,000
2005 35,000 2015 60,000
2006 35,000 2016 60,000
YEAR
3. -lee s .1 las kr . 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. PRIOR REDEMPTION. The bonds shall be subject to redemption prior to
maturity upon the terms and conditions set forth in the form of bond contained
in Section 8 hereof.
3: BOND RSSIISTRAR AND PAYINAaENT The County Treasurer shall
designate, and may enter into an agreement with, a bond registrar and paying
agent for the bonds that shall be a bank or trust company located in the State
of Michigan that 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 requires's apeignate a similarly qualified successor bond registrar
and paying agent.
6. p.YECTITTON AUTHENTICATION ANT) DELIVERY OF noNns. The bonds shall be
executed in the name of the County by the facsimile signatures of the Chairman
of the Board of Commissioners and the County Clerk and authenticated by the
manual signature of an authoriead eapeaaaerarive 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 ens3 eethentieetesT 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 Chairman 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.
7. FXCHANC;E ANT) TRANSFEP OF noNns 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 IP .
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 that have been selected for redemption,
form:
a. FORM OF nouns, The bonds shall be in substantially the following
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
OAKLAND COUNTY SEWAGE DISPOSAL SYSTEM
(WHITE LAKE TOWNSHIP) BONDS, SERIES 1995A
INTEREST RATE MATURITY DATE DATE OP OIaINAI itw CUs I P
July 1, 1995
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 the office of
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 May I, 1996. 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
Seven Hundred Twenty-Five Thousand Dollars ($725,000) 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 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,
constructing and financing the Oakland County Sewage Disposal System (White Lake
Township Extensions -- Union Lake Road improvements) (the "Project"). The bonds
of this series are issued in anticipation of payments to be made by the Charter
Township of White Lake (the "Townshio") in the aggregate principal amount of
Seven Hundred Twenty-Five Thousand ($725,000) pursuant to a contract between the
County and the Township dated as of August 1, 1992 (the "Contract"). The full
faith and credit of the Township have been pledged to the prompt payment of the
principal amount of the bonds of this series 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 County and the Township 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 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 that have been selected for redemption.
Bonds maturing prior to May 1, 2005, are not subject to redemption prior
to maturity. Bonds maturing on and after May 1, 2005, 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
May 1, 2004. 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 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:
1/2% of the principal amount of each bond if called for redemption
on or after May 1, 2004, but prior to May 1, 2009;
No premium if called for redemption on or after May 1, 2009.
Not less than thirty days' notice of redemption shall be given to the
registered owners of bonds called to be redeemed by mail to each registered owner
at the registered address. Bonds or portions of bonds called for redemption
shall not bear interest on and 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
Commissloners, has caused this bond to be executed in its name by facsimile
signatures of the Chairman 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
Chairman, Board of Commissioners
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 does hereby irrevocably constitute and appoint
.nn 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 signAtilre gilAranteP
program.
9. SECURITY. The bonds shall be issued in anticipation of payments to
be made by the Township pursuant to the Contract. The bonds shall be secured
primarily by the full faith and credit pledge made by the Township in the
Contract pursuant to the authorization contained in Act 342. As additional and
secondary security the full faith and credit of the Township are pledged for the
prompt payment of the principal of and interest on the bonds as the same shall
become due. If the Township shall fail to make payments to the County that 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 cf the County.
10. 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, shall have been deposited in
trust, this resolution shall be defeased 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 the bonds from the cash or
securities deposited in trust and the interest and gains thereon and to transfer
and exchange bonds as provided herein.
11. zgaicjau_gaLjallEaLazjam. There shall be established for the
bonds a Principal and Interest Fund that 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 Township 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,
12. CCN5TRtJCTON 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 Project in accordance with the provisions of the Contract.
13. R.E.LTEmENT oF RoNDS.. 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
that 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 13 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.
14. REDUCTION OF PRTNCIPAL AMOUNT OF BOND Ts.qim. If the County Drain
Commissioner shall determine that it is not necessary to sell bonds in the
principal amount of Seven Hundred Twenty-Five Thousand Dollars ($725,000), 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.
15. L. : u D 'tZliu • • Z Oa :Ou •i i i
APPROv .U. 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. The County Drain Commissioner and the County Treasurer are
each severally authorized to apply for such waivers from the Michigan Department
of Treasury as the County Drain Commissioner Of the County Treasurer deems
appropriate in connection with the sale of the bonds.
16. .SALE. ISSUANCE. DELIVERY. TRANSFERANDEXCHANc3EOFBONDS. 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.
AN DEPARTME1: RFASUR) DN FROM PRIOR
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 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.
18. 7XTRNSION OF mwTPArT If the bonds are issued on or before
August 1, 1995, the termination date of the Contract set forth in section 12
thereof shall be extended to August 1, 1996.
19. coNFLrcTrlic, wpAnLnTrolia. 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 of the foregoing resolutiop . —„,„ ,--1 / . ) ./ = 4 •2 - . ,
Iii";7.# // i. ).2 V
(
P G AND BUILDING COMMITTEE
May 25, 1995
FISCAL NOTE (Misc. #95158)
BY: FINANCE AND PERSONNEL comminEE, John P. McCulloch, Chairperson
IN RE; DRAIN COMMISSIONER -- RESOLUTION TO AUTHORIZE THE ISSUANCE OF BONDS
TO DEFRAY PART OF THE COST OF SEWAGE DISPOSAL IMPROVEMENTS TO THE
OAKLAND COUNTY SEWAGE DISPOSAL SYSTEM MUTE LAKE TOWNSHIP
EXTENSIONS -- UNION LAKE ROAD IMPROVEMENTS)
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-G of this Board, the Finance Committee has reviewed
Miscellaneous Resolution #95158 and finds:
1) Miscellaneous 5.Egaiation #92246 established sewage disposal
facilities known as the "Oakland County Sewage Disposal System
(White Lake TownShip Pwi-pninnq -- Union Lake Road Improvements) and
approved a contract between the County and the Township of White
Laxe for the acquisition, construction and financing of the system.
2) The current resolution requests aEthnri7Afinn for the issuance of
drain bonds to defray a portion of the cost of acquiring and
constructing the system with the County pledging full faith and
credit. The Township of White Lake is the primary obligor.
3) The principal amount of the bond issue is $725,000 at an interest
rate not to exceed 8% to be paid back within 20 years.
4) The statutory limit for County debt is $3,118,025,963 (10% of 1994
State Equalized Value). As of April 30 1 1995, the outstanding debt
is $335,467,666 or approximately 1.1% of the S.E.V.
5) Of the total bond sale of $725,000, the County's appc=tiromment is
0%.
Resolution #95158 May 25, 1995
Moved by Palmer supported by Huntoon the resolution be adopted.
AYES: Jacobs, Jensen, Johnson, Kaczmar, Kingzett, Law, McPherson, Moffitt,
Obrecht, Palmer, Pernick, Powers, Quarles, Schmid, Taub, Wolf, Amos, Crake,
Devine, Dingeldey, Douglas, Garfield, Holbert, Huntoon. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
E FOREGOING RESOLUTION
Executive Date
STATE OF MICHIAN)
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 May 23, 1995 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 25th da o May .
•-mm n D. Allen, County Clerk