HomeMy WebLinkAboutResolutions - 2001.05.24 - 26536MISCELLANEOUS RESOLUTION #01138 May 24, 2001
BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, Chairperson
IN RE: TREASURER - MINNOW POND DRAINAGE DISTRICT REFUNDING BONDS - FULL FAITH
AND CREDIT RESOLUTION
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS, the Minnow Pond Drainage District previously has issued its
Drain Bonds, dated November 1, 1993 (the "Drain Bonds" ), in the original
principal amount of $10,040,000, and this Board of Commissioners pledged the
full faith and credit of the County of Oakland for the prompt payment of the
principal and interest on the Drain Bonds; and
WHEREAS, the Drainage Board for the Minnow Pond Drain, by resolution
adopted on April 9, 1999, authorized and provided for the issuance by the
Minnow Pond Drainage District of its Refunding Bonds, Series 2001 (the
" Refunding Bonds" ) in the aggregate principal amount of not to exceed
$8,200,000 to refund the Drain Bonds maturing in the years 2002 through 2013;
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 in such years and principal amounts, and will be
subject to redemption prior to maturity as shall be determined by the Drainage
Board at the time of sale; 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
of Oakland (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 City of
Farmington Hills, the County and the State of Michigan.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
COUNTY OF OAKLAND, MICHIGAN, as follows:
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 City of Farmington Hills, the County, or the State of Michigan shall
fail or neglect to account to the County Treasurer of the County 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.
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.
The County Treasurer, the bond counsel, or the financial consultant,
Municipal Financial Consultants Incorporated, is authorized to file with the
Department of Treasury of the State of Michigan on behalf of the County an
Application for State Treasurer's Approval to Issue Bonds with respect to the
Refunding Bonds.
FINANCE COMMITTEE:
Motion carried unanimously on a roll call vote with Friedman Appel and Melton
absent.
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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.
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 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.
Chairperson, on behalf of the Finance Committee, I move the adoption of
the foregoing resolution.
FINANCE COMMITTEE
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OAKLAND COUNTY
MEMORANDUM
DRAIN COMMISSIONER
DATE: May 8, 2001
TO: Mr. Charles Palmer, Chairman
Planning & Building Committee
FROM: Kevin R. Larsen, Chief Deputy Drain Commissioner
RE: Minnow Pond Drainage District Refunding Bonds, Series 2001
The captioned bond issue is being proposed to refund bonds originally issued on November
1, 1993 because interest rates have substantially declined in the last few months. Our
financial Advisory, Municipal Financial Consultants Incorporated, has estimated a net
savings after all costs are paid in excess of $400,000 based upon interest rates prevailing in
the market place in early April.
The City of Farmington Hills has adopted a resolution approving the refunding. Farmington
Hills is responsible for 97.2391% of the debt on this bond issue.
An approximate timetable for this project is attached.
We request that our resolution be placed on your Planning and Building Committee Agenda
for May 15, 2001. As time is of the essence, it is our intent to request a suspension of the
rules and immediately present the resolution to the Finance Committee on May 17, 2001.
The resolution will then be presented at the May 24, 2001 Board of Commissioners meeting
for approval.
Thank you for your assistance.
cc: Frank Millard, Chairperson, Oakland County Board of Commissioners
Sue Ann Douglas, Chairperson, Finance Committee
OAKLAND COUNTY DRAIN COMMISSIONER
MINNOW POND CSO DRAINAGE DISTRICT
REFUNDING BONDS, SERIES 2001
Maximum Amount of Bonds: $8,200,000
TIMETABLE
Action Date
City Commission of the City of
Farmington Hills Approves Refunding April 19, 1999
Drainage Board Approves Refunding Bond
Resolution and Requests County Board
of Commissioners to Pledge Full Faith
and Credit
Oakland County Planning and Building
Committee Waiver Approving Refunding
Oakland County Finance Committee
Approves Refunding
Oakland County Full Board of
Commissioners Approves Pledge of
Full Faith and Credit for Refunding
Order of the Drain Commissioner
Approving the Notice of Sale
Application to State of Michigan for
Approval to Issue Bonds
April 24, 2001
May 15, 2001
May 17, 2001
May 24, 2001
June 1, 2001
May 28, 2001
State Approves Bond Issue June 28, 2001
Advertise Bonds for Sale and Mail
Official Statement
Bond Sale
Drainage Board Awards Bonds
Bond Delivery
las.tt-oak76-80
July 3, 2001
July 17, 2001
July 17, 2001
July , 2001
At a regular mccting of the City Council of the City of Farmington Hills, Oakland
County, Michigan, held on April 19 , 1999.
PRESENT: BARNETT, RATES, ELLIS, OLIVERIO, SORONEN AND VAGNOZZI
ABSENT: GRANT
The following resolution was offered by Councilmember Bates and seconded by
Council:member Oliverio
WHEREAS, pursuant to the provisions of Chapter 20 of Act No. 40, Public Acts of
Michigan, 1956, as amended, the Minnow Pond Drainage District has issued its Drain Bonds
dated November 1, 1993 (the "Prior Bonds"), in the original principal amount of S10,040,000 to
defray part of the cost of acquiring and constructing the Minnow Pond Drain in anticipation of
the collection of the several installments of assessments against the City of Farmington Hills (the
"City") and the County of Oakland (the "County") on Special Assessment Roll No. 1 for
Minnow Pond Drain; and
WHEREAS, the City has been advised that conditions in the bond market have now
improved from the conditions which prevailed at the time the Prior Bonds were sold and that the
Prior Bonds could be refunded at a considerable savings to the City and the County; and
WHEREAS, it is the determination and judgment of this City Council that the Prior
Bonds should be refunded to secure for the City the anticipated savings;
THEREFORE, BE IT RESOLVED:
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1. The Minnow Pond Drainage District is requested and authorized to issue its
refunding bonds (the "Refunding Bonds") pursuant to the provisions of Act No. 202, Public Acts
of Michigan, 1943, as amended, in an amount necessary to refund all or part of the Prior Bonds
(as shall be determined by the Drainage Board) and paying the costs of issuing the Refunding
Bonds.
2. The proceeds of the Refunding Bonds shall be sufficient to pay the costs of
issuing the Refunding Bonds and to establish the Escrow Fund in an amount which will be
sufficient to pay the principal of, the redemption premiums on, and the interest on the Prior
Bonds that are refunded without further payment by the City or the County.
3. The City agrees and consents to the imposition of special assessments against the
City on a refunding bonds special assessment roll for the payment of the Refunding Bonds.
4. The Clerk, the Treasurer or the City Manager is authorized to file an Application
for State Treasurer's Approval to Issue Bonds with respect to the Refunding Bonds.
5. The 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 City, 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 Treasurer is authorized to execute and deliver such certificates and
to do all other things necessary to effectuate the sale and delivery of the Refunding Bonds.
6. The Treasurer is authorized to execute a certificate of the City, constituting an
undertaking to provide ongoing disclosure about the City for the benefit of the holders of the
• - Refunding Bonds as required under paragraph (b)(5) of the Rule, and amendments to such
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certificate from time to time in accordance with the terms of the certificate (the certificate and
any amendments thereto are collectively referred to herein as the "Continuing Disclosure
Certificate"). The City hereby covenants and agrees that it will comply with and carry out all of
the provisions of the Continuing Disclosure Certificate.
YEAS: BARNETT, BATES. ELLIS, OLIVERIO, SORONEN AND VAGNOZZI
NAYS: NONE
ABSTENTIONS: NONE
ABSENT: GRANT
RESOLUTION DECLARED ADOPTED.
STATE OF MICHIGAN )
)ss
COUNTY OF OAKLAND )
I hereby certify that the foregoing is a true and complete copy of a resolution adopted by
the City Council of the City of Farmington Hills, Oakland County, Michigan,. at a regular
meeting duly called and held on thet__ 9 h 1 day o f April , 1999, the original of which
resolution is on file in my office.
Cler if Kathryn A. Doman, City Clerk
Cipi of Fthnington Hills
DETItOrT 999.73-)4/ 41014
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TOTAL P.14
Resolution #01138 May 24, 2001
Moved by Palmer supported by Patterson the resolutions on the Consent
Agenda be adopted (with accompanying reports being accepted).
AYES: Appel, Brian, Buckley, Causey-Mitchell, Coleman, Crawford,
Dingeldey, Douglas, Galloway, Garfield, Gregory, Law, McPherson, Millard,
Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Webster, Amos.
(24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolutions on the
Consent Agenda were adopted, with accompanying reports being accepted.
I HEREP"A• • E FOREGOING RpOL3JTION
g/2-7 70/
L. Brooks Patter County Executive Date
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, 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 24, 2001 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 24 th Aay of/glay, 2001.
G. William Caddell, County Clerk