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Home My WebLink AboutResolutions - 2003.03.19 - 27197MISCELLANEOUS RESOLUTION W056 March 20, 2003 BY: FINANCE COMMITTEE, Chuck Moss, Chairperson In Re: RESOLUTION TO INITIATE ACTION TO REDEEM ALL OF THE OUTSTANDING CALLABLE COUNTY OF OAKLAND, MICHIGAN OAKLAND COUNTY WATER SUPPLY BONDS WEST BLOOMFIELD SYSTEM SECTIONS XII) PRIOR TO MATURITY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS, the Charter Township of West Bloomfield, Michigan (the "Township") has previously requested that the County of Oakland, Michigan (the "County"), acting through its Board of Commissioners, to finance the acquisition and construction of the West Bloomfield Water Supply System to service the Township in the amount of $1,950,000 for that purpose; and WHEREAS, the Township has requested that the County redeem all of such callable outstanding bonds with maturities and interest rates as set forth in EXHIBIT A, which as of the date hereof, remain outstanding in the principal amount of $1,175,000 (such bonds referred to as the "Bonds to be Redeemed"); and WHEREAS, it appears to this Board that the redemption of said bonds is advisable to save further interest costs; and WHEREAS, the Board of Commissioners of the County must approve such redemption; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE COUNTY OF OAKLAND, MICHIGAN as follows: 1. The Board of Commissioners of the County hereby confirms the request of the Township to call the Bonds to be Redeemed, pursuant to the Resolution To Initiate Action to Redeem the Oakland County Water Supply Bonds (West Bloomfield System Section XII) Prior to Maturity, adopted by the Township Board on February 3, 2003, and recommends that the Board of Commissioners approve the necessary resolution which is attached as APPENDIX A. 2. The Chairman of the Board of Commissioners and bond counsel, Axe & Ecklund, P.C., are instructed to take whatever steps are necessary to call the Bonds to be Redeemed. 3. All resolutions and parts of resolution, insofar as the same may be in conflict herewith, are hereby rescinded. Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Middleton absent. EXHIBIT A DEBT SERVICE SCHEDULE OF OUTSTANDING BONDS TO BE REDEEMED Redemption Date: May 1, 2003 PRINCIPAL ANNUAL YEAR DUE MAY 1 RATE PREMIUM (1.0) TOTAL 2004 100,000 6.10% 1,000 101,000 2005 125,000 6.20% 1,250 126,250 2006 125,000 6.30% 1,250 126,250 2007 125,000 6.35% 1,250 126,250 2008 125,000 6.40% 1,250 126,250 2009 125,000 6.45% 1,250 126,250 2010 150,000 6.50% 1,500 151,500 2011 150,000 6.50% 1,500 151,500 2012 150,000 6.50% 1,500 151,500 TOTAL $1,175,000 $11,750 $1,186,750 (1) Bonds maturing on and after May 1, 2003, shall be subject to redemption prior to maturity, at the option of the County of Oakland (sometimes referred to herein as the "County"), in any order, on any one or more interest payment dates on and after May 1, 2002 at par and accrued interest to the date fixed for redemption, plus a premium as follows: 1.00% of the par value of each bond called for redemption on or after May 1, 2002, but prior to May 1, 2005; 0.50% of the par value of each bond called for redemption on or after May 1, 2005, but prior to May 1, 2008; No premium if called for redemption on or after May 1, 2008. EXHIBIT B NOTICE OF REDEMPTION $1,950,000 OAKLAND COUNTY WATER SUPPLY BONDS (WEST BLOOMFIELD SYSTEM SECTION XII) Dated as of June 1, 1992 DUE MAY 1, 2004 THROUGH AND INCLUDING AND MAY 1, 2012 NOTICE IS HEREBY GIVEN that the County of Oakland. State of Michigan has called for redemption, on May 1, 2003, (the "Redemption Date"), all of the callable outstanding Oakland County Water Supply Bonds (West Bloomfield System Section XII) (the "Bonds"), pursuant to the redemption provisions contained in the Bonds, bearing the original issue date of June 1, 1992, maturing in the principal amounts, on the dates, bearing interest at the rates, with the "CUSIP" numbers, as follows: Principal Rate CUSIPS* Due iou,o1io 6.7Plo 6724101355 -1n71Ty 1.2004 125,000 6.20% 672410B63 May 1, 2005 125,000 6.30% 672410B71 May 1, 2006 125,000 6.35% 672410B89 May 1, 2007 125,000 6.40% 672410B97 May 1, 2008 125,000 6.45% 672410C21 May 1,2009 150,000 6.50% 672410C39 May 1,2010 150,000 6.50% 672410C47 May 1, 2011 150,000 6.50% 672410054 May 1,2012 Said Bonds will be redeemed at 101.00% of the par value thereof. Said Bonds should be surrendered for redemption to Standard Federal — Corporate & Institutional Trust, A division of LaSalle Bank National Association (f/k/a Michigan National Bank), Troy, Michigan, as paying agent, for payment as of May 1, 2003, after which date all interest on said Bonds shall cease to accrue, whether said Bonds are presented for payment or not. Bonds may be surrendered for payment as indicated below. The method of delivery is at the option of the holder, but if by mail, registered mail is suggested. If by U.S Mail or Otherwise: Standard Federal — Corporate & Institutional Trust, A division of LaSalle Bank National Association f/k/a/ Michigan National Bank Corporate Trust Department 2600 West Big Beaver Road Troy, Michigan 48084 Under the provisions of the Interest and Dividend Tax Compliance Act of 1983 and the Comprehensive National Energy Policy Act of 1992, paying agents making payments of principal on municipal securities may be obligated to withhold a 31% tax from remittances to individuals who have failed to furnish the paying agent with a certified and valid Taxpayer Identification Number on a fully completed Form W-9. Holders of the above described Bonds, who wish to avoid the application of these provisions, should submit certified Taxpayer Identification Numbers on I.R.S. Form W-9 when presenting their securities for redemption. OAKLAND COUNTY Pat Dohany, County Treasurer Dated: , 2003 * No representation is made as to the correctness of the CUSIP numbers either as printed on the Bonds or as contained herein and reliance may be placed only on the identification numbers. TOTAL $1,175,000 $11,750 $1,186,750 S1,950,000 OAKLAND COUNTY WATER SUPPLY BONDS (WEST BLOOMFIELD SYSTEM SECTION XII) Total paid on May 1, 2003 for redemption PRINCIPAL ANNUAL YEAR DUE MAY 1 RATE PREMIUM (1.0) TOTAL 2004 100,000 6.10% 1,000 101,000 2005 125,000 6.20% 1,250 126,250 2006 125,000 6.30% 1,250 126,250 2007 125,000 6.35% 1,250 126,250 2008 125,000 6.40% 1,250 126,250 2009 125,000 6.45% 1,250 126,250 2010 150,000 6.50% 1,500 151,500 2011 150,000 6.50% 1,500 151,500 2012 150,000 6.50% 1,500 151,500 Total interest savings if redeemed on 5/1/03 is $399,350,00 E rrti- y/.3 eron, County Executive I HEREBY L. Brooks Date G. William Caddell, County Clerk Resolution #03056 March 20, 2003 Moved by Knollenberg supported by KowaII the resolutions on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Coulter, Crawford, Douglas, Gregory, Hatchett, Jamian, Knollenberg, KowaII, Law, Long, McMillin, Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Zack, Bullard, Coleman. (24) NAYS: None. (0) A sufficient majority having voted therefore, the resolutions on the Consent Agenda were adopted (with accompanying reports being accepted). 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 March 20, 2003, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of thg County of Oakland at Pontiac, Michigan this 20th day of March, 2003.