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HomeMy WebLinkAboutResolutions - 2003.10.02 - 27307MISCELLANEOUS RESOLUTION 103274 October 2, 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 KING DRAIN DRAINAGE DISTRICT BONDS PRIOR TO MATURITY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS, the City of Troy, Michigan (the " City" ) has previously requested that the County of Oakland, Michigan (the " County" ), acting through its Drain Board, to finance the locating, establishing and construction of the King Drain in the County in the amount of $1,675,000 for that purpose; and WHEREAS, the City 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 $900,000 (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 City to call the Bonds to be Redeemed, pursuant to the Resolution To Initiate Action to Redeem the Oakland County King Drain Drainage District Bonds Prior to Maturity, adopted by the City Council on June 16, 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 All resolutions and parts of resolution, insofar as the same may be in conflict herewith, are hereby rescinded.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 FINANCE COMMITTEE: Motion carried unanimously on a roll call vote. EXHIBIT A $1,675,000 OAKLAND COUNTY KING DRAINAGE DISTRICT DRAIN BONDS SCHEDULE OF OUTSTANDING BONDS Redemption Date: November 1, 2003 PRINCIPAL ANNUAL YEAR DUE MAY 1 RATE PREMIUM (0.0) TOTAL 2004 150,000 4.70% 0 , 150,000 2005 150,000 4.80% 0 - 150,000 2006 200,000 4.90% 0 200,000 2007 200,000 5.00% 0 200,000 2008 200,000 5.10% 0 200,000 TOTAL $900,000 $900,000 Redemption Provisions: Bonds maturing on and after May 1, 2001, shall be subject to redemption prior to maturity, at the option of the Drainage District, in any order, on any one or more interest payment dates on and after May 1, 2000 at par and accrued interest to the date fixed for redemption, plus a premium as follows: 1/2% of the par value of each bond called for redemption on or after May 1, 2000, but prior to May 1, 2003; No premium on bonds called for redemption on or after May 1, 2003. Bond Registrar and Paying Agent: Standard Federal-Corporate and Institutional Trust, a division of LaSalle Bank National Association (f/k/a) Michigan National Bank Corporate Trust Dept. Suite 140 2600 W. Big Beaver Rd. Troy, MI 48084 dmh.RD-OCD6(dr) EXHIBIT B NOTICE OF REDEMPTION $1,675,000 OAKLAND COUNTY KING DRAINAGE DISTRICT DRAIN BONDS Dated as of September 1, 1993 DUE MAY 1, 2004 NOTICE IS HEREBY GIVEN that the County of Oakland, State of Michigan has called for redemption, on November 1, 2003, (the "Redemption Date"), all of the callable outstanding Oakland County King Drainage District Drain Bonds (the "Bonds"), bearing the original issue date of September 1, 1993, maturing in the principal amounts, on the dates, bearing interest at the rates, with the "CUSIP" numbers, as follows: Principal Rate CUSIPS* Due 150,000 4T623% 672802AL9 May 1,2004 150,000 4.750% 672802AM7 May 1, 2005 200,000 4.800% 672802AN5 May 1, 2006 200,000 4.900% 672802AP0 May 1, 2007 200,000 5.000% 672802AQ8 May 1, 2008 Said Bond will be redeemed at 100% of the par value thereof. Said Bonds should be surrendered for redemption to Standard Federal- Corporate and Institutional Trust, a division of LaSalle Bank National Association, Troy, Michigan. (f/k/a) Michigan National Bank as paying agent, for payment as of November 1, 2003, after which date all interest on said Bond shall cease to accrue, whether said Bond is presented for payment or not. Bond may be surrendered for payment at the office of the bond registrar and paying agent indicated below. Method of delivery is at the option of the holder, but if by mail, registered mail is suggested. Standard Federal-Corporate and Institutional Trust, a division of LaSalle Bank National Association (f/k/a) Michigan National Bank Corporate Trust Dept Suite 140 2600 W. Big Beaver Rd. Troy, MI 48084 * 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 them as identification numbers. 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 or for payment at maturity. Dated: , 2003 COUNTY OF OAKLAND John P. McCulloch, Drain Commissioner dmh.RD-OCD6(dr) 2 Resolution #03274 October 2, 2003 Moved by Wilson supported by Crawford the resolutions on the Consent Agenda, be adopted (with accompanying reports being accepted). AYES: Bullard, Coleman, Coulter, Crawford, Douglas, Gregory, Hatchett, Jamian, Knollenberg, Long, McMillin, Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Wilson, Zack. (23) NAYS: None. (0) A sufficient majority having voted therefore, the resolutions on the Consent Agenda, were adopted (with accompanying reports being accepted). or"- 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 October 2, 2003 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed th9eal of)iie County of Oakland at Pontiac, Michigan this 2nd day of October, 2003. G. William Caddell, County Clerk 2