Loading...
HomeMy WebLinkAboutResolutions - 2006.12.14 - 28095November 30, 2006 MISCELLANEOUS RESOLUTION #06234 BY: Planning and Building Committee, Charles E. Palmer, Chair IN RE: RESOLUTION AUTHORIZING THE OAKLAND COUNTY BUILDING AUTHORITY TO FINANCE A PROJECT TO ACQUIRE FACILITIES LOCATED IN OAKLAND COUNTY, MICHIGAN TO BE USED BY THE OAKLAND COUNTY COMMUNITY MENTAL HEALTH AUTHORITY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS, there have been prepared and presented to the Board of Commissioners (the "Board") of the County of Oakland, Michigan (the "County"), conceptual documents describing the project to acquire various facilities located in the County of Oakland (the "Project") which will be used by the Oakland County Community Mental Health Authority (the "CMHA"), all as more fully described in EXHIBIT A to the Lease Contract (as hereinafter defined), and a proposed Lease Contract between the County and the Oakland County Building Authority (the "Authority") dated as of December 1, 2006 (the "Lease Contract"), pursuant to which the Authority will acquire, construct, furnish, renovate and equip the Project as contemplated by the terms of Act No. 31, Public Acts of Michigan, 1948 (First Extra Session), as amended ("Act 31"), and lease the Project to the County for a term not to exceed 50 years as permitted by Act 31; and WHEREAS, it has been estimated that the period of usefulness of the Project to be not less than 35 years and that the total cost of acquiring, constructing, furnishing, renovating and equipping the Project (as defined in the Lease Contract) in an amount not to exceed S3,5C0,000 which will be provided by the proceeds from the sale of bonds by the Authority pursuant to Act 31; and WHEREAS, the County proposes to undertake the Project and to request the Authority to incur taxable or tax-exempt debt (the "Reimbursement Obligations") to finance all or a portion of the costs of the Project; WHEREAS, the County may make certain expenditures for said Project prior to issuance of the Reimbursement Obligations and may wish to use the proceeds of the Reimbursement Obligations to reimburse all or a portion of said expenditures; WHEREAS, it is in the public interest and for the public benefit that the County designate an authorized officer for the purposes of declaring official intent of the County with respect to expenditures; WHEREAS, there has been prepared and attached hereto as APPENDIX : a form of Lease Contract and as APPENDIX II a form of 1 notice entitled "NOTICE OF INTENTION OF THE COUNTY OF OAKLAND TO ENTER INTO A LEASE CONTRACT WITH THE OAKLAND COUNTY BUILDING AUTHORITY AND NOTICE OF RIGHT TO PETITION FOR REFERENDUM THEREON" (the "Notice of Intention"); NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE COUNTY OF OAKLAND, MICHIGAN, as follows: 1. The conceptual documents and estimates relating to the Project and identified in EXHIB:T A to APPENDIX I hereto are hereby approved and ordered filed with the County Clerk. 2. The Lease Contract in the form of APPENDIX I hereto is hereby approved, and the Chairman of the Board of Commissioners and the County Clerk are hereby authorized and directed to execute and deliver the same for and on behalf of the County. Final plans and project description shall be approved by the Planning and Building Committee of the Board of Commissioners before they are attached to the Lease Contract to be executed. 3. It is hereby determined that the Notice of Intention provides information sufficient to adequately inform the electors and taxpayers of the County of the nature of the contractual obligations to be undertaken by the County in the Lease Contract and of their right under Act 31 to file a petition requesting a referendum election on the Lease Contract. 4. The form and content of the Notice of Intention are hereby approved, and the County Clerk is hereby authorized and directed to cause the Notice of :ntention to be published once in the Oakland Press, Pontiac, Michigan, a newspaper of general circulation within the County which is hereby determined to be the newspaper reaching the largest number of electors and taxpayers of the County. The Notice shall be at least one third of a page in size. 5. The Treasurer of the County is hereby authorized to declare official intent of the County with respect to reimbursement. 6. Each declaration of official intent shall be substantially in the form set forth in APPENDIX III attached hereto and by this reference incorporated herein, and said form may be modified from time to time cn the advice of bond counsel to the County and as necessary to conform to requirements of our reimbursement regulations as the same may be adopted by the Internal Revenue Service or amended from time to time, or with the requirements of applicable rulings or regulations relating to tax-exempt borrowings. 7. The Treasurer is hereby directed to file each declaration of official intent in the office of the Oakland County Clerk, which location constitutes the customary location 2 of the records of the Authority which are available to the general public. 8. The Oakland County Clerk is further directed to assure that each declaration of intent is continuously available during normal business hours of the County on every business day of the period beginning the earlier of 10 days after the date of execution of said declaration of intent and ending on the date of issuance of the Reimbursement Bonds. 9. The County Executive, if necessary, is authorized to file for approval to issue the bonds from the State of Michigan, Department of Treasury ("Treasury"), to pay the related fee, and to execute and deliver such other documents as may be requested by the Treasury. 10. All activities involved in the planning and construction of this Project under this resolution shall comply with the standing rules of the Board. of Commissioners. BE IT FURTHER RESOLVED that the Chairperson of the Board of Commissioners is authorized to fill in the blanks in Appendix A - Continuing Disclosure Certificate and, Exhibit B to Lease Contract and, Appendix III Declaration of Intent prior to executing and filing these documents with the Oakland County Clerk. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE Planning & Building Committee Vote: Motion carried unanimously with Gershenson absent 3 APPENDIX I LEASE CONTRACT THIS FULL FAITH AND CREDIT GENERAL OBLIGATION LEASE CONTRACT ("Lease") made as of December 1, 2006, by and between the OAKLAND COUNTY BUILDING AUTHORITY (the "Authority"), a building authority organized and existing under and pursuant to the provisions of Act No. 31, Public Acts of Michigan, 1948 (First Extra Session), as amended ("Act 31"), and the COUNTY OF OAKLAND, a County of the State of Michigan (the "County"), WITNESSETH : WHEREAS, the Authority has been incorporated by the County pursuant to Act 31 for the purpose of acquiring, furnishing, equipping, owning, improving, enlarging, operating and maintaining a building or buildings, automobile parking lots or structures, recreational facilities and stadiums, and the necessary site or sites therefor, for the use of the County; and WHEREAS, the County desires to undertake a project to acquire various facilities located in the County of Oakland, as more fully described in EXHIBIT A to this Lease (the "Project") which will be used by the Oakland County Community Mental Health Authority (the "CMHA"), and it is proposed that the Authority undertake the Project; and WHEREAS, it is proposed that the Authority finance the total cost of the Project by the issuance of building authority bonds payable from cash rental payments to be made by the County to the Authority pursuant to this Lease and Act 31; and WHEREAS, a description of the Project, and estimate of the period of usefulness thereof and an estimate of the total cost of the Project, all as set forth on EXHIBIT A to this Lease, have been reviewed and approved by the Board of Commissioners of the County; and WHEREAS, in order to make possible the issuance of building authority bonds to finance all or a portion of the total cost of the Project, it is necessary under Act 31 for the parties to enter into this Lease; THEREFORE, IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS AND AGREEMENTS SET FORTH BELOW, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES TO THIS LEASE AS FOLLOWS: 1. Authorization and Issuance of Bonds. As soon as practicable after the effective date of this Lease, the Authority shall proceed to authorize and issue one or more series of its building authority bonds in the aggregate principal amount of not to exceed $5,500,000 (the "Bonds"), pursuant to and in accordance Project to be paid by bond proceeds can be equipped for less than $5,500,000, or the County shall be able to make payment in advance on the cash rental payments payable pursuant to this Lease, the Authority may reduce the amount of bonds to be issued in multiples of $5,000 and reduce the annual maturities or the years of maturities as the County Treasurer shall direct. 2. Transfer of Title to and Completion of Project. As soon as practicable after the Bonds have been sold, the County shall transfer title to the Project to the Authority, and the Authority shall commence the Project. The plans, cost estimate and estimated period of usefulness for the Project, all of which have been filed with the County Clerk and the Secretary of the Authority, are hereby approved and adopted. The Project shall be implemented in substantial accordance with such plans which are incorporated as part of (but not attached to) this Lease. No major changes in such plans shall be made without the written approval first by the County and then by the Authority. 3. Increased Project Costs. In the event that it shall appear, upon determining the costs for the acquisition and construction of the Project and after issuance of the Bonds, that the Project cannot be completed at the estimated cost, the Authority shall immediately so notify the County. The County may elect to pay the increased cost in cash to the Authority in which event the amount of such cash payment shall be deposited in the acquisition and construction fund for the Project and the Authority shall proceed to acquire and complete the Project. In the alternative, the County and the Authority may agree, by an amendment to this Lease, that additional bonds shall be issued by the Authority in an amount sufficient to pay the increased Project costs. If, after the sale and issuance of the Bonds, it shall become necessary to raise additional funds to pay for an increase in the Project costs and this Lease cannot be amended to provide for the issuance of additional bonds, or if for any other reason additional bonds cannot be issued, the County shall pay to the Authority in cash an amount which will be sufficient to enable the Authority to complete the Project in accordance with the plans of the Project. 4. Funds Remaining After Completion. Any unexpended balance of the proceeds of the sale of the Bonds remaining after completion of the Project may be used to improve or enlarge the Project upon the approval of the Planning and Building Committee of the Board of Commissioners provided that such use of the funds in the acquisition and construction fund has been approved by the Municipal Finance Division of the Michigan Department of Treasury, if necessary, and the County. Any unexpended balance not so used shall be paid into the bond and interest redemption fund, and the County shall receive a credit against the cash rental payments next due under this Lease to the extent of the moneys so deposited in the manner provided in the Bond Resolution. 3 5. Insurance Requirements. The Authority shall require any contractor or contractors for the Project to furnish all necessary bonds guaranteeing performance and all labor and material bonds and all owner's protective, workers' compensation and liability insurance required for the protection of the Authority and the County. Such bonds and insurance, and the amounts thereof, shall be subject to approval of the County on the advice of its counsel. The Authority also shall require a sufficient fidelity bond from any person handling funds of the Authority. 6. Lease Term; Possession; Reconveyance. (a) The Authority does hereby lease the Project to the County for a term commencing on the effective date of this Lease (determined as provided in Section 22) and ending on December 31, 2035, or such earlier or later date as the principal of and premium, if any, and interest on the Bonds, the fees and expenses of the paying agent for the Bonds and all amounts owing hereunder have been paid in full, but in any event the term of this Lease shall not exceed 50 years. Possession of the Project shall vest in the County upon the execution of the Lease. At the end of the term of this Lease, the Authority shall convey to the County all of its right, title and interest in and to the Project and any lands, easements or rights-of-way appertaining thereto, and upon such conveyance, this Lease shall terminate, and the Authority shall have no further interest in, or obligations with respect to, the Project. (b) The County shall, upon the terms and conditions set forth in this Lease, acquire and convey to the Authority all lands, buildings, tenements, hereditaments, easements and rights- of -way necessary to enable the Authority to complete the Project in accordance with the plans. 7. Cash Rental; Pledge of Full Faith and Credit. The County hereby agrees to pay to the Authority as cash rental for the Project such periodic amounts as shall be sufficient to enable the Authority to pay the principal of and interest on the Bonds as such principal and interest shall become due, whether at maturity or by redemption. For so long as any bonds are outstanding, the County shall pay to the Authority, on the Bond Payment Date, an amount sufficient to pay the principal and/or interest due on the Bonds on such Bond Payment Date. The County hereby pledges its full faith and credit for the payment of the cash rental when due and agrees that it will levy each year such ad valorem taxes as shall be necessary for the payment of such cash rental, which taxes, however, will be subject to applicable constitutional and statutory limitations on the taxing power of the County, and which shall not be in an amount or at a rate exceeding that necessary to pay its contractual obligation pursuant to this Lease. If the County, at the time prescribed by law for the making of its annual tax levy, shall have other funds on hand which have been set aside and earmarked for payment of its obligations under this Lease for 4 which a tax levy would otherwise have to be made, then the tax levy shall be reduced by the amount of such other funds. Such other funds may be raised from any lawful source. The obligation of the County to make such cash rental payments shall not be subject to any set-off by the County nor shall there be any abatement of the cash rental payments for any cause, including, but not limited to, casualty that results in the Project being untenantable. 8. Expenses of Issuing and Payment of Bonds. The Authority shall pay from the proceeds of the sale of any series of the Bonds all expenses incurred with respect to the issuance of the Bonds. The County agrees to pay to the Authority, in addition to the cash rental provided for in Section 7, all expenses incurred with respect to the issuance and payment of the Bonds, to the extent not so paid from the proceeds from the sale of the Bonds. The obligation of the County to make such payments shall be a general obligation of the County. 9. Preliminary Expenses of the County. Upon the sale of the Bonds, the County shall give the Authority a full and complete accounting of the preliminary costs and expenses incurred on or before that date by the County in connection with the Project, and the Authority shall thereupon reimburse the County for such costs and expenses to the extent that such costs and expenses were included in the portion of the total cost of the Project to be paid from bond proceeds. 10. Maintenance and Repairs. The County shall, at its own expense, operate and maintain the Project and shall keep the same in good condition and repair. Operation and maintenance shall include (but not be limited to) the providing of all personnel, equipment and facilities, all light, power, heat, water, sewerage, drainage and other utilities, and all properties and services of whatever nature, as shall be necessary or expedient in the efficient and lawful operation and maintenance of the Project. Premiums for insurance required to be carried upon or with respect to the Project or the use thereof and taxes levied upon either party hereto on account of the ownership or use of the Project, or on account of rentals or income from the Project, shall likewise be deemed operation and maintenance expenses. The obligation of the County to pay all costs and expenses of the operation and maintenance of the Project shall be a general obligation of the County. 11. Property Insurance and Insurance Proceeds. The County shall provide, at its own expense, fire and extended coverage insurance in an amount which is at least equal to the amount of bonds outstanding from time to time or to the amount of the full replacement cost of the Project if that amount be less than the amount of bonds outstanding. Such insurance shall be payable to the County and the Authority as their interests may appear and shall be made effective from the date of commencing acquisition of the Project. In the event of the partial or total destruction 5 of the Project during or after acquisition and construction, or if the Project is for any reason made unusable, the cash rental payments provided in Section 7 shall continue unabated. The County shall have the option to use the proceeds of insurance, in the event of loss or damage to the Project, for the repair or restoration of the Project. If the County shall determine not to use the proceeds of insurance for the repair or restoration of the Project, the amount of such insurance proceeds shall be held by the County until it is paid to the Authority and deposited in the bond and interest redemption fund (as required by Paragraph 1), and the County shall receive appropriate credits on future cash rental payments due under this Lease. 12. Liability Insurance. The County shall provide and maintain during the term of this Lease adequate liability insurance or self insurance protecting the County and the Authority against loss on account of damage or injury to persons or property, imposed by reason of the ownership, possession, use, operation, maintenance or repair of the Project and the site of the Project, or resulting from any acts of omission or commission on the part of the County or the Authority or their respective officers, employees or agents in the connection with the Project and shall, to the extent permitted by law, indemnify, hold harmless and defend the Authority, its officers, employees or agents against any and all claims for any such damage or injury. Such insurance shall be made effective from the date acquisition of the Project commences. 13. No Unlawful Use Permitted. The Project shall not be used or permitted to be used in any unlawful manner or in any manner which would violate the provisions of any contract or agreement between the County or the Authority and any third party. To the extent permitted by law, the County shall hold the Authority harmless and keep it fully indemnified at all times against any loss, injury or liability to any persons or property by reason of the use, misuse or non-use of the Project or from any act or omission in, on or about the Project. The County shall, at its own expense, make any chang es or alterations in, on or about the Project which may be required by any applicable statute, charter, ordinance or governmental regulation or order and shall save the Authority harmless and free from all costs or damages with respect thereto. 14. Alterations of Project. The County, in its sole discretion, may install or construct in or upon, or may remove from the Project, any equipment, fixtures or structures, and may make any alterations to or structural chancres in, the Project as the County may desire in accordance with the standing rules of the Board of Commissioners. 15. Right of Inspection. The Authority, through its officers, employees, or agents, may enter upon the Project at any reasonable time during the term of this Lease for the purpose of inspecting the Project and determining whether the County is 6 complying with the covenants, agreements, terms and conditions of this Lease. 16. Contractual Rights of Bondholders. Inasmuch as this Lease, and particularly The obligation of The County to make cash rental payments to the Authority, provides the security for payment of the principal of and interest on the Bonds, it is hereby declared that this Lease is made for the benefit of the holders from time to time of the Bonds as well as for the benefit of the parties and that such holders shall have contractual rights under this Lease. In the event of any default under this Lease on the part of the County, the Authority and the holders of the Bonds shall have all rights and remedies provided by law, including in particular all rights and remedies provided by Act 31. The parties further agree that they will not do, or permit to be done, any act, and that This Lease will not be amended in any manner, which would impair the security of the Bonds or the rights of the holders of the Bonds. An amendment of this Lease to authorize the issuance of additional bonds and providing the payment of additional cash rentals for the payment of such bonds shall not be deemed to impair the security of the Bonds or the rights of the holders of the Bonds. 17. Appurtenant Facilities. The site on which this Project is to be located includes, or will include, roadways, walks, drives, parking areas and landscaping which are of benefit to and necessary to the full use and enjoyment of the Project, and it is hereby agreed that so long as any bonds remain outstanding and unpaid, such appurtenant facilities will be maintained in good repair and condition by the County or by its lessees and available to the users and occupants of the Project. 18. Successors and Assigns. This Lease shall inure to the benefit of, and be binding upon, the respective parties hereto and their successors and assigns, provided, however, that no assignment shall be made in violation of the terms of this Lease nor shall any assignment be made which would impair the security of the Bonds or the rights of the holders of the Bonds. 19. Abandonment of Project. In the event the Bonds to finance the Project cannot be or are not issued by the Authority on or before December 31, 2008, the Project shall be abandoned, the County shall nay from available funds all expenses of the Authority incurred to the date of abandonment, and neither party shall have any further obligations under this Lease. 20. Consents, Notices, Etc. The right to give any consent, agreement or notice required or permitted in this Lease shall be vested, in the case of the County, in its Board of Commissioners, and in the case of the Authority, in its Commission. Any notice required or permitted to be given under this Lease shall be given by delivering the same, in the case of the County, to the County Clerk, and in the case of the Authority, to any member of its Commission. 7 21. Changes in Law or Corporate Status. In the event there shall occur changes in the Constitution or statutes of the State of Michigan which shall affect the organization, territory, powers or corporate status of the County, the terms and provisions of this Lease shall be unaffected thereby insofar as the obligation of the County to make the cash rental payments is concerned. The proceeds of any sale or other liquidation of any interest of the County or the Authority in the Project are hereby impressed with a first and prior lien for payment of any outstanding bonds or other obligations of the Authority incurred by reason of the Project or any additions or improvements thereto. 22. Effective Date of Lease. This Lease shall become effective on the 61st day after publication of a Notice of Intention in the Oakland Press, a newspaper published in Pontiac, Michigan, as required by Act 31, provided that if a petition for a referendum is filed as provided in (and meeting all requirements of) Section 8b of Act 31, then this Lease shall not become effective unless and until approved by a majority of the electors of the County voting thereon at a general or special election. 23. Undertaking to Provide Continuing Disclosure. The County and the Authority hereby covenant and agree, for the benefit of the beneficial owners of the Bonds, to enter into a written undertaking (the "Undertaking") required by SEC Rule 15c2-12 promulgated by the Securities and Exchange Commission pursuant to the Securities and Exchange Act of 1934 (the "Rule") to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events in accordance with the Rule. The undertaking shall be in the form attached hereto as Appendix A. This Undertaking shall be enforceable by the beneficial owners of the Bonds or by the Purchaser(s) on behalf of such beneficial owners (provided that the Purchaser(s) right to enforce the provisions of this Undertaking shall be limited to a right to obtain specific enforcement of the obligations hereunder and any failure by the County and the Authority to comply with the provision of this Undertaking shall not be an event of default with respect to the Bonds). The County Treasurer and the Chairperson or Treasurer of the Authority, or other officer of the County or Authority charged with the responsibility for issuing the Bonds, shall provide a Continuing Disclosure Certificate for inclusion in the transcript of proceedings, setting forth the details and terms of the County's and Authority's Undertaking. IN WITNESS WHEREOF, the OAKLAND COUNTY BUILDING AUTHORITY, by its Commission, and the COUNTY OF OAKLAND, by its Board of Commissioners, have caused this Lease to be signed by their duly 8 authorized officers, and their seals to be affixed hereto, all as of the day and year first above written. WITNESSES TO SIGNATURES OAKLAND COUNTY BUILDING AUTHORITY OF AUTHORITY OFFICERS: By: Chairperson of its Commission By: Secretary of its Commission WITNESSES TO SIGNATURES COUNTY OF OAKLAND OF COUNTY OFFICERS: By: Chairperson, Board of Commissioners By: County Clerk las.r1-oak174 9 STATE OF MICHIGAN) )ss COUNTY OF OAKLAND) day of , before me appeared and , to me personally known, who being by me duly sworn, did each say that they are, respectively, the Chairperson and the Secretary of the Commission of the OAKLAND COUNTY BUILDING AUTHORITY and that the foregoing Lease Contract was signed and sealed by them on behalf of the Authority by authority of its Commission, and that such persons acknowledged such instrument to be the free act and deed of the Authority. Notary Public, Oakland County, Michigan My Commission Expires: (Seal) STATE OF MICHIGAN) )ss. COUNTY OF OAKLAND) On this day of , before me appeared and , to me personally known, who being by me duly sworn, did each say that they are, respectively, the Chairman of the Board of Commissioners and the County Clerk of the COUNTY OF OAKLAND and that the foregoing Lease Contract was signed and sealed by them on behalf of the County by authority of its Board of Commissioners, and that such persons acknowledged such instrument to be the free act and deed of the County. Notary Public, Oakland County, Michigan My Commission Expires: (Seal) Instrument Drafted By: John R. Axe Axe & Ecklund, P.C. 21 Kercheval, Suite 360 Grosse Pointe Farms, Michigan 48236 On this las.rl-oak174 10 APPENDIX A CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the (the "Issuer") [ (the "Obligated Municipality")) in connection with the issuance of $ [Name of Issue] (the "Securities"). The Securities are being issued pursuant to a Resolution adopted by the Governing Body of the Issuer on ; a Resolution adopted by the governing body of the Issuer [Obligated Municipality]; and an Award Resolution adopted by the Governing Body of the Issuer on (collectively the "Resolution") and delivered to (the "Purchaser") on the date hereof. Pursuant to the Resolution, the Issuer [Obligated Municipality] has covenanted and agreed to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events. :n addition, the Issuer [Obligated Municipality] hereby specifically covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer [Obligated Municipality] for the benefit of the holders of the Securities in order to assist the Participating Underwriters within the meaning of the Rule (defined herein) in complying with SEC Rule 15c2-12(b)(5). This Disclosure Certificate constitutes the written Undertaking required by the Rule. Section 2. Definitions. In addition to the defined terms set forth in the Resolution, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any annual report provided by the Issuer [Obligated Municipality] pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Audited Financial Statements" means the Issuer's [Obligated Municipality's] annual financial statements, which are currently prepared in accordance with generally accepted accounting principles [GAAP for governmental units as prescribed by GASP] and which the Issuer [Obligated Municipality] intends to continue to prepare in substantially the same form. "Fiscal Year" means the fiscal year of the Issuer [Obligated Municipality]. "Final Official Statement" means the final official statement dated delivered in connection with the Securities, which is available from the MSRB. "Governing Body" means the of the Issuer [Obligated Municipality] or such other body as may hereafter be the chief legislative body of the Issuer. "Issuer" means which is the obligated person with respect to the Securities. ["Obligated Municipality" means which is the obligated person with respect to the Securities.] "Issuer Contact" means the [Clerk, or ] of the Issuer who can be contacted at ["Obligated Municipality Contact" means the [Clerk, or ] of the Obligated Municipality who can be contacted at .] "Material Event" means any of the events listed in Section 5(a) of this Disclosure Certificate. "MSRB" means the Municipal Securities Rulemaking Board located at 1150 18th Street, N.W., Suite 400, Washington, D.C. 20036. "NRMSIR" means any nationally recognized municipal securities information repository as recognized from time to time by the SEC for purposes of the Rule. "Participating Underwriter" means any of the original underwriter(s) of the Securities (including the Purchaser) required to comply with the Rule in connection with the offering of the Securities. "Repository" means each NRMSIR and each SID, if any. "Rule" means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time. "SEC" means the Securities and Exchange Commission. "SID" means any public or private repository or entity designated by the State of Michigan as a state information depository for the purpose of the Rule. Section 3. Provision of Annual Financial Information and Audited Financial Statements. (a) The Issuer [Obligated Municipality] shall, not later than two hundred seventy (270) days after the end of the Fiscal Year, commencing with the year that ends provide each Repository with annual financial information which is consistent with the requirements cf Section 4 of this Disclosure Certificate. The annual financial information may be submitted as a sin g le document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial Statements of the Issuer [Obligated Municipality] may be submitted separately from the balance of the annual financial information; and provided further that unaudited financial statements will be included with the other financial information, if audited statements have not already been furnished. (b) If the Issuer [Obligated Municipality] is unable or fails to provide to the Repositories an Annual Report by the date required in subsection (a), the Issuer [Obligated Municipality] shall send a notice of that fact in a timely manner to the NRMSIRs, the MSRB and any SID. (c) The Issuer [Obligated Municipality] shall determine each year prior to the date for providing the Annual Report the name and address of each NRMSIR and each SID, if any. Section 4. Content of Annual Reports. The Issuer's [Obligated Municipality's] Annual Report shall contain or incorporate by reference the following: Updates of the "State Equalized Valuation", "Taxable Valuation", "County Tax Rates and Levies", "Tax Collection Record", "General Fund Revenues and Expenditures", and "Debt Statement (Direct and Overlapping Debt)" contained in the Final Official Statement and the current Audited Financial Statements. Any or all of the items listed above may be incorporated by reference from other documents, including official statements of debt issues of the Issuer [Obligated Municipality] or related public entities, which have been submitted to each of the Repositories or the SEC. If the document incolpuldLed by reference is a final official statement, it must be available from the MSRB. The Issuer [Obligated Municipality] shall clearly identify each such other document so incorporated by reference. Section 5. Reporting of Material Events. (a) This Section 5 shall govern the giving of notices of the occurrence of any of the following events in a timely manner if material with respect to the Securities: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax- exempt status of the Securities; 7. Modification to rights of holders of the Securities; 8. Securities calls; 9. Defeasances; 10. Release, substitution or sale of property securing repayment of the Securities; and 11. Rating changes. (b) Whenever a Material Event occurs, the Issuer [Obligated Municipality] shall promptly file a notice of such occurrence with either all NRMSIRs or with the MSRB and with any SID. Notwithstanding the foregoing, notice of Material Events described in subsections (a) (8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is required to be given to holders of affected Securities pursuant to the Resolution. (c) Unless otherwise required by law and subject to technical and economic feasibility, the Issuer [Obligated Municipality] shall employ such methods of information transmission as shall be requested or recommended by the designated recipients of the Issuer's [Obligated Municipality's] information. Section 6. Termination of Reporting Obligation. The Issuer's [Obligated Municipality's] obligations under the Resolution and this Disclosure Certificate shall terminate upon the defeasance, prior redemption or payment in full of all the Securities. Section 7. Issuer [Obligated Municipality] Contact; Agent. Information may be obtained from the Issuer [Obligated Municipality] Contact. Additionally, the Issuer [Obligated Municipality] may, from time to time, appoint or engage a dissemination agent to assist it in carrying out its obligations under the Resolution and this Disclosure Certificate, and may discharge any such agent, with or without appointing a successor dissemination agent. The initial dissemination agent shall be the Municipal Advisory Council of Michigan, 1445 First National Building, Detroit, Michigan 48226. Section 8. Amendment; Waiver. Notwithstanding any other provision of the Resolution or this Disclosure Certificate, as provided in this Section 8, and any provision of this Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally recognized bond counsel to the effect that such amendment or waiver would not, if and of itself, cause the undertakings to violate the Rule. The provisions of this Disclosure Certificate constituting the Undertaking or any provision hereof, shall be null and void in the event that the Issuer [Obligated Municipality] delivers to each then existing NRMSIR and the SID, if any, an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require this Disclosure Certificate are invalid, have been repealed retroactively or otherwise do not apply to the Securities. The provisions of this Disclosure Certificate constituting the Undertaking may be amended without the consent of the holders of the Securities, but only upon the delivery by the Issuer [Obligated Municipality] to each then existing NRMSIR and the SID, if any, of the proposed amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the compliance of this Disclosure Certificate and by the Issuer [Obligated Municipality] with the Rule. Any such amendment may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of the Issuer [Obligated Municipality] for other obligated person, as defined in the Rule), or type of business conducted. No such amendment may be made unless the Undertaking, as amended, would have complied with the requirements of the Rule at the time of the primary offering of the Securities, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances. No such amendment shall be made unless it does not materially impair the interests of holders of the Securities, as determined by nationally recognized bond counsel. The annual financial information containing any amended operating data or amended financial information will explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided. If an amendment is made to the Undertaking specifying the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made will present a comparison between the financial statements or information prepared on the basis of the new account principles and those prepared on the basis of the former accounting principles. The comparison will include a qualitative discussion of the differences in the accounting principles and the impact of the change in the account principles on the presentation of the financial information , in order to provide information to investors to enable them to evaluate the ability of the Issuer [Obligated Municipality] or any obligated person to meet its obligations. To the extent reasonably feasible, the comparison will also be quantitative. A notice of the change in the accounting principles will be sent to each then existing NRMSIR or the MSRB, and to the SID, if any. Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer [Obligated Municipality] from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this Disclosure Certificate. If the Issuer [Obligated Municipality] chooses to include any information in any Annual Report or notice of occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer [Obligated Municipality] shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 10. Default. In the event of a failure of the Issuer [Obligated Mun i cipality] to comply with any provision of this Disclosure Certificate any holder of the Securities may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Issuer [Obligated Municipality] to comply with its obligations under the Resolution and this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default with respect to the Securities and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer [Obligated Municipality] to comply with this Disclosure Certificate shall be an action to compel performance. Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer [Obligated Municipality], the Participating Underwriters and holders from time to time of the Securities, and shall crate no rights in any other person or entity. IN WITNESS WHEREOF, I have executed this Certificate in my official capacity effective the day of [Executive Officer] Clerk/Secretary [SEAL] las.r1-oak174 EXHIBIT A to LEASE CONTRACT Project Description: The project will consist of the acquisition of various facilities located throughout the County of Oakland to be used by the Oakland County Community Mental Health Authority. Legal Descriptions Legal Description: T3N, R7E, SEC 31 PART OF SE M BEG AT PT DIST S 00-18-45 W 306.76 FT & N 89-38-26 W 290.25 FT FROM E M COR, TH N 89-38-26 W 290.24 FT, TH S 00-18-45 W 242.08 FT, TH S 89-22-35 E 290.25 FT, TH N 00-18-45 E 243.45 PT TO BEG 1.62 A Legal Description: Lot 51 & North 30 ft of Lot 52, Meadowbrook Lake Subdivision Assessor's Parcel No. 22-26-403-011 Neighborhood or Project Name: Meadowbrook Subdivision Map Reference: SMSA 2160 Census Track: 1360 Legal Description: SEC 31 PART OF SW M BEG AT PT DIST N 64-02-53 E 65.38 FT FROM SW SEC COR, TH N 64-02-53 E 215.30 FT, ALG CENT LINE OF INDIAN LAKE RD, TH N 02-33-07 W 463.52 FT, TH S 87-26-53 W 197.60 FT, TH S 02-33-07 E 549.03 FT TO BEG 2.30 A Legal Description: Town 4 North, Range 8 East, Section 10, part of the SW M beginning at point distant 66 degrees 12 minutes 00 seconds E 236.86 feet from SW corner of E IA of SW 1/4 ; thence S 55 degrees 06 minutes 00 seconds E 150 feet; thence S 09 degrees 50 minutes 26 seconds W 474.27 feet; thence N 66 degrees 12 minutes 00 seconds W 100 feet to beginning Legal Description: T2N, R9E, SECTION 14, PINE LAKE ESTATES NO. 4, LOT 243 COMMONLY KNOWN AS 4112 DAWN LANE, WEST BLOOMFIELD, MI 48033 Legal Description: Lot 16 Apple Hill Farms Assessor's Parcel No: 03-19-302-005 Neighborhood or Project Name: Apple Hill Farms Map Reference: SMSA 2160 Census Track: 1227 Legal Description: PARCEL A BEG AT A POINT IN THE CENTERLINE OF GRANGE HALL RD WHICH BEARS N 0-25-00 W 1633.14 FT N 79-08-30 E 388.84 FT FROM THE SOUTH 14 COR OF SEC 29; THENCE ALONG THE CENTERLINE OF GRANGE HALL RD N 79-08-30 E 129.57 FT THENCE S 0- 58-40 E 406.43 FT THENCE S 88-45-10 W 129.43 FT THENCE N 0-42-45 W 384.81 FT TO THE POINT OF THE BEG Legal Description: Lot 3, Brandon Beautiful Assessor's Parcel No: 03-16-351-005 Neighborhood or Project Name: Brandon Beautiful Map Reference: SMSA 2160 Census Track: 1227 Legal Description: T5N R7E, SEC 7 PART OF SE IA OF SE IA BEG AT PT, DIST N 88-22-20 W 560 FT FROM SE SEC COR TH N 00-39-20 E 280 FT, THE N 88-22-20 W 254.89 FT, TH S 44-53-20 W 384.43 FT, TH S 88- 22-20 E 523.10 FT TO BEG 2.50 A Assessor's Parcel No: 01-70-476-011 Neighborhood or Project Name: N/A Map Reference: SMSH 2160 Census Track: 1240 Legal Description: LOT 22, MEADOWBROOK MANOR NO 1 T1N R8E SECTION 36 COMMONLY KNOWN AS 41386 LLEWELYN, NOVI, MI 48050 Legal Description: PARCEL 4, BEG NW COR OF SEC 27; TH ALONG THE N LINE OF SAID SEC 27 N 88-53-15 E 520.15 FT TH S 275.00 FT TH S 88-53-15 W 520.15 FT TO THE W LINE OF SEC 27 TH ALONG SAID W LINE OF SEC 27 N 275.00 FT TO THE POINT OF BEG Legal Description: BEGINNING AT THE POINT DIST S 89-30-47 W 1325.69 FT N 00-02-10 E 44.58 FT FROM THE E 14 COP. TH N 47-37-10 W 421.64 FT TH N 00-11-10 W 217.73 FT TH N 89-13-26 E 312.52 FT TH S 00-02-10 W 506.17 FT TO THE POINT OF THE BEGINNING TOGETHER WITH AND SUBJECT TO THE RIGHTS OF INGRESS AND EGRESS OVER A 66 FOOT PRIVATE ROADWAY AND PUBL:C UTILITIES EASEMENT WHOSE CENTER LINE IS DESCRIBED AS BEG AT A POINT DISTANT DUE S 33 FT FROM THE E N COR; TH S 89-22-45 W 1238.82 FT N 47-37-10 W 539.41 FT N 00-11-10 W 620.66 FT TO THE CENTER OF 60 FT CUL-DE- SAC Legal Description: SEC 31 PART OF SN FRAC 14 BEG AT PT DIST S 02- 03-30 E 948.30 FT & N 89-26-00 E 2446.65 FT FROM W COR, TH N 89-26-00 E 165 FT, TH N 12-12-00 W 673.84 FT, TH S 89-26-00 W 165 FT, TH S 12-12-00 E 673.84 FT TO THE BEG 2.50 Legal Description: SEC 5 PART OF SE 1/1 BEG AT PT DIST S 88-20-19 W 906.66 FT FROM SE SEC COR, TH S 88-20-19 W 453.35 FT, TH N 01-12- 26 W 613.03 FT, TH N 88-32-07 E 452.43 FT, TH S 01-17-32 E 611.47 FT TO BEG 6.37 A Legal Description: PART OF W % OF NE N BEG AT PT DIST E 1085.57 FT FROM N COR, TH E 345.50 FT, TH S 00-51-44 E 622.05 FT, TH W 354.86 FT, TH N 621.98 FT TO BEG 5 AP169A-1 II Legal Description: SEC 14 DALGLEISH FARMS PART OF LOT 10 BEG AT SE LOT COR, TH N 02-37-22 W 555.84 FT, TH S 87-55-30 W 207.35 FT, TM S 02-37-22 E 465.64 FT, TH N 87-58-49 E 45.35 FT, TH S 02-37- 22 E 90 FT, TH N 87-58-49 E 162 FT TO BEG Legal Description: PART OF SE 1/1 SEC OF 27, TOWN 5 N, RANGE 11 E: BEG AT A POINT DISTANT N 89-48-10 W 372.48 FT FROM SE SEC COR TH N 89-48-10 W 200 FT TH N 00-18-00 W 281.31 FT TM S 89-48-10 E 200 FT TH S 00-18-00 E 281.31 FT TO BEG Legal Description: SEC 14 PART OF SW 1/4 OF SW 1/1 BEG AT PT DIST N 367.34 FT FROM SW SEC COP., TM N 214.05 FT, TM S 88-49-00 E 200 FT, TH S 214.05 FT, TH N 88-49-00 W 500 FT TO BEG 2.46 A Legal Description: T3N, R7E, SEC & PART OF SW 14 BEG AT PT DIST N 00-29-32 E 1024 FT & S 89-30-29 E 750.29 FT FROM SW SEC COR, TH S 89-30-29 E 320 FT, TH S 00-29-32 W 609.98 FT, TM S 89-44-40 W 320.03 FT, TH N 00-29-32 E 614.16 FT TO BEG 4.50 A LOT 15, SUPERVISORS PLAT, RIVERWOOD ESTS. [Additional parcels may be added or substitutes if necessary.] Preliminary Project Cost Estimate: Costs of Financing (including bond discount) $ 172,525.00 Acquisition Costs (including additional houses) 5,327,475.00 Total Costs $5,500,000.00 las.rl-oak174 III EXHIBIT B to LEASE CONTRACT OAKLAND BUILDING AUTHORITY PROJECT SCHEDULE OF PRINCIPAL AND INTEREST DUE AMOUNT TOTAL APPENDIX II NOTICE OF INTENTION OF THE COUNTY OF OAKLAND TO ENTER INTO A LEASE CONTRACT WITH THE OAKLAND COUNTY BUILDING AUTHORITY AND NOTICE OF RIGHT TO PETITION FOR REFERENDUM THEREON TO ALL ELECTORS AND TAXPAYERS OF THE COUNTY OF OAKLAND: NOTICE IS HEREBY GIVEN that the Board of Commissioners of the County of Oakland, Michigan (the "County"), has authorized the execution of a full faith and credit general obligation lease contract (the "Lease") between the County and the Oakland County Building Authority (the "Authority"). The Lease provides, among other things, for the following purposes: See Exhibit A to be located at: See Exhibit A (the "Project"). The Lease provides further that the Authority will finance all or a portion of the total cost of the Project by the issuance of one or more series of building authority bonds (the "Bonds") pursuant to the provisions of Act No. 31, Public Acts of Michigan, 1948 (First Extra Session), as amended ("Act 31"), in anticipation of the receipt of cash rental payments to be made by the County to the Authority pursuant to the Lease. The maximum amount of bonds to be issued in one or more series shall not exceed $5,500,000, the term of the Lease shall not exceed 35 years and the Bonds shall bear interest at a rate or rates that will result in a net interest cost of not more than 8% per annum. FULL FAITH AND CREDIT AND TAXING POWER OF THE COUNTY OF OAKLAND WILL BE PLEDGED NOTICE IS FURTHER GIVEN that in the Lease the County will obligate itself to make cash rental payments to the Authority in amounts sufficient to pay the principal of and interest on the Bonds. The full faith and credit of the County will be pledged for the making of such cash rental payments. Pursuant to such pledge of its full faith and credit, the County will be obligated to levy such ad valorem taxes upon all taxable property in the County as shall be necessary to make such cash rental payments, which taxes, however, will be subject to applicable statutory and constitutional limitations on the taxing power of the County. In addition to its obligation to make cash rental payments, the County will agree in the Lease to pay all costs and expenses of operation and maintenance of the Project and all expenses of the Authority incidental to the issuance and payment of the Bonds, to the extent such expenses are not payable from the proceeds of the Bonds. RIGHT TO PETITION FOR REFERENDUM NOTICE IS FURTHER GIVEN to the electors and taxpayers of the County to inform them of the right to petition for a referendum on the question of entering into the Lease. The County intends 1 to enter into the Lease without a vote of the electors thereon, but the Lease shall not become effective until 60 days after publication of this notice. If, within 45-days after publication of this notice, a petition for referendum requesting an election on the Lease, signed by not less than 10% or 15,000 of the registered electors of the County, whichever is less, has been filed with the County Clerk, the Lease shall not become effective unless and until approved by a majority of the electors of the County voting thereon at a general or special election. This notice is given by order of the Board of Commissioners pursuant to Act 31. Further information may be obtained at the office of the Oakland County Clerk, County Service Center, 1200 N. Telegraph Rd., Pontiac, Michigan 48341. EXHIBIT A PROJECT DESCRIPTION Project Description: The project will consist of the acquisition of various facilities located throughout the County of Oakland to be used by the Oakland County Community Mental Health Authority. Legal Descriptions Legal Description: T3N, R7E, SEC 31 PART OF SE 1/1 BEG AT PT DIST S 00-18-45 W 306.76 FT & N 89-38-26 W 290.25 FT FROM E 1/4 COR, TH N 89-38-26 W 290.24 FT, TH S 00-18-45 W 242.08 FT, TH S 89-22-35 E 290.25 FT, TH N 00-18-45 E 243.45 PT TO BEG 1.62 A Legal Description: Lot 51 & North 30 ft of Lot 52, Meadowbrook Lake Subdivision Assessor's Parcel No. 22-26-403-011 Neighborhood or Project Name: Meadowbrook Subdivision Map Reference: SMSA 2160 • Census Track: 1360 Legal Description: SEC 31 PART OF SW IA BEG AT PT DIST N 64-02-53 E 65.38 FT FROM SW SEC COR, TH N 64-02-53 E 215.30 FT, ALG CENT LINE OF INDIAN LAKE RD, TH N 02-33-07 W 463.52 FT, TH S 87-26-53 W 197.60 FT, TH S 02-33-07 E 549.03 FT TO BEG 2.30 A Legal Description: Town 4 North, Range 8 East, Section 10, part of the SW 1,4 beginning at point distant 66 degrees 12 minutes 00 seconds E 236.86 feet from SW corner of E of SW 1/4 ; thence S 55 degrees 06 minutes 00 seconds E 150 feet; thence S 09 degrees 50 minutes 26 seconds W 474.27 feet; thence N 66 degrees 12 minutes 00 seconds W 100 feet to beginning 2 Legal Description: T2N, R9E, SECTION 14, PINE LAKE ESTATES NO. 4, LOT 243 COMMONLY KNOWN AS 4112 DAWN LANE, WEST BLOOMFIELD, MI 48033 Legal Description: Lot 16 Apple Hill Farms Assessor's Parcel No: 03-19-302-005 Neighborhood or Project Name: Apple Hill Farms Map Reference: SMSA 2160 Census Track: 1227 Legal Description: PARCEL A BEG AT A POINT IN THE CENTERLINE OF GRANGE HALL RD WHICH BEARS N 0-25-00 W 1633.14 FT N 79-08-30 E 388.84 FT FROM THE SOUTH IA COR OF SEC 29; THENCE ALONG THE CENTERLINE OF GRANGE HALL RD N 79-08-30 E 129.57 FT THENCE S 0- 58-40 E 406.43 FT THENCE S 88-45-10 W 129.43 FT THENCE N 0-42-45 W 384.81 FT TO THE POINT OF THE BEG Legal Description: Lot 3, Brandon Beautiful Assessor's Parcel No: 03-16-351-005 Neighborhood or Project Name: Brandon Beautiful Map Reference: SMSA 2160 Census Track: 1227 Legal Description: T5N R7E, SEC 7 PART OF SE IA OF SE % BEG AT PT, DIST N 88-22-20 W 560 FT FROM SE SEC COR TH N 00-39-20 E 280 FT, THE N 88-22-20 W 254.89 FT, TH S 44-53-20 W 384.43 FT, TH S 88- 22-20 E 523.10 FT TO BEG 2.50 A Assessor's Parcel No: 01-70-476-011 Neighborhood or Project Name: N/A Map Reference: SMSH 2160 Census Track: 1240 Legal Description: LOT 22, MEADOWBRCOK MANOR NO 1 TIN R8E SECTION 36 COMMONLY KNOWN AS 41386 LLEWELYN, NOVI, MI 48050 Legal Description: PARCEL 4, BEG NW COR OF SEC 27; TH ALONG THE N LINE OF SAID SEC 27 N 88-53-15 E 520.15 FT TH S 275.00 FT TH S 88-53-15 W 520.15 FT TO THE W LINE OF SEC 27 TH ALONG SAID W LINE OF SEC 27 N 275.00 FT TO THE POINT OF BEG Legal Description: BEGINNING AT THE POINT DIST S 89-30-47 W 1325.69 FT N 00-02-10 E 44.58 FT FROM THE E 1/4 COR TH N 47-37-10 W 421.64 FT TH N 00-11-10 W 217.73 FT TH N 89-13-26 E 312.52 FT TH S 00-02-10 W 506.17 FT TO THE POINT OF THE BEGINNING TOGETHER WITH AND SUBJECT TO THE RIGHTS OF INGRESS AND EGRESS OVER A 66 FOOT PRIVATE ROADWAY AND PUBLIC UTILITIES EASEMENT WHOSE CENTER LINE IS DESCRIBED AS BEG AT A POINT DISTANT DUE S 33 FT FROM THE E COR; TH S 89 -22 -45 W 1238.82 FT N 47-37-10 W 539.41 FT N 00-11-10 W 620.66 FT TO THE CENTER OF 60 FT CUL-DE- SAC 3 Legal Description: SEC 31 PART OF SN FRAC 14 BEG AT PT DIST S 02- 03-30 E 948.30 FT & N 89-26-00 E 2446.65 FT FROM W 1/i COR, TH N 89-26-00 E 165 FT, TH N 12-12-00 W 673.84 FT, TH S 89-26-00 W 165 FT, TH S 12-12-00 E 673.84 FT TO THE BEG 2.50 Legal Description: SEC 5 PART OF SE 14 BEG AT PT DIST S 88-20-19 W 906.66 FT FROM SE SEC COR, TM S 88-20-19 W 453.35 FT, TH N 01-12- 26 W 613.03 FT, TM N 88-32-07 E 452.43 FT, TH S 01-17-32 E 611.47 FT TO BEG 6.37 A Legal Description: PART OF W % OF NE 14 BEG AT PT DIST E 1085.57 FT FROM N COR, TH E 345.50 FT, TH S 00-51-44 E 622.05 FT, TH W 354.86 FT, TH N 621.98 FT TO BEG 5 AP169A-1 Legal Description: SEC 14 DALGLEISH FARMS PART OF LOT 10 BEG AT SE LOT COR, TH N 02-37-22 W 555.84 FT, TM S 87-55-30 W 207.35 FT, TH S 02-37-22 E 465.64 FT, TH N 87-58-49 E 45.35 FT, TH S 02-37- 22 E 90 FT, TH N 87-58-49 E 162 FT TO BEG Legal Description: PART OF SE 14 SEC OF 27, TOWN 5 N, RANGE 11 E: BEG AT A POINT DISTANT N 89-48-10 W 372.48 FT FROM SE SEC COR TH N 89-48-10 W 200 FT TH N 00-18-00 W 281.31 FT TH S 89-48-10 E 200 FT TH S 00-18-00 E 281.31 FT TO BEG Legal Description: SEC 14 PART OF SW 1/4 OF SW 14 BEG AT PT DIST N 367.34 FT FROM SW SEC COR, TH N 214.05 FT, TH S 88-49-00 E 200 FT, TH S 214.05 FT, TH N 88-49-00 W 500 FT TO BEG 2.46 A Legal Description: T3N, R7E, SEC & PART OF SW 1/1 BEG AT PT DIST N 00-29-32 E 1024 FT & S 89-30-29 E 750.29 FT FROM SW SEC COR, TM S 89-30-29 E 320 FT, TH S 00-29-32 W 609.98 FT, TH S 89-44-40 W 320.03 FT, TH N 00-29-32 E 614.16 FT TO BEG 4.50 A LOT 15, SUPERVISORS PLAT, RIVERWOOD ESTS. [Additional parcels may be added or substitutes if necessary.] Preliminary Project Cost Estimate: Costs of Financing (including bond discount) $ 172,525.00 Acquisition Costs (including additional houses) 5,327,475.00 Total Costs $5,500,000.00 Ruth A. Johnson Oakland County Clerk DATED: [Date of Publication] las.rl-oak174 4 APPENDIX III FORM OF DECLARATION OF OFFICIAL INTENT I, the undersigned of the County of Oakland, Michigan, do hereby certify as follows: 1. I am an officer of the County authorized to declare official intent of The County to reimburse expenditures made, prior to the issuance of debt, from the proceeds of said debt. 2. This Declaration relates to the following expenditures (the "Expenditures"): Amount General Purpose 3. The Expenditures are with respect to property (the "Property") having: (A) the following general character, type or purpose: (B) the following size, quantity or cost: and (C) a reasonably expected economic life at least one (1) year. 4. I understand that a substantial deviation between the above description of the Property for which the Expenditures are being made and the actual Property which is acquired or constructed will invalidate this declaration of official intent with the result that any proceeds of tax-exempt debt which are used to reimburse for the Expenditures will not be deemed to have been expended upon such reimbursement. 5. The County intends to reimburse the Expenditures by incurring taxable or tax-exempt debt (the "Reimbursement Obligations"). 6. The expected source of funds that will be used to pay the Expenditures is as follows: issuance of UD to $ of Building Authority Bonds by the Oakland County Building Authority. 7. The expected source of funds to be used to pay debt service on the Reimbursement Obligation is as follows: payment made by the Oakland County through the Oakland County General Fund. 8. This declaration of intent is consistent with the budgetary and financial circumstances of the County as of the date hereof in that there are no funds which are now or are reasonably expected to be, (A) allocated on a long-term basis, (B) reserved or (C) otherwise available pursuant to the County's budget, to pay the Expenditure. 9. The County does not have a pattern of failure to reimburse expenditures for which official intent has been declared in that at least seventy-five percent (75%) of all expenditures made after July 1, 1992, for which the County has declared an intent to reimburse from the proceeds of taxable or tax-exempt debt have been, or are expected to be, so reimbursed. 10. I acknowledge that in the event that the County fails to use the proceeds of Reimbursement Obligations issued within three (3) years of the date hereof to reimburse expenditures the same may adversely affect the ability of the County to use the proceeds of tax-exempt obligations in the future to reimburse for expenditures made prior to the issuance of such obligations. 11. I further acknowledge that unless the Expenditures constitute preliminary expenditures (in the nature of architect services and soil testing but excluding land acquisition) for the Property not in excess of ten percent (10%) of the expected cost of the project of which the Property constitutes a part, the Expenditures will be paid within not in excess of two (2) years following the date hereof or, as an alternative, this declaration of intent will be renewed. 12. I further acknowledge that it is expected that the proceeds of Reimbursement Obligations will be used for reimbursement of each Expenditure not later than (A) the date that is one (1) year after the date on which such Expenditure is paid or (B) the date that is one (1) year after the date on which the Property is placed in service. 13. I further acknowledge that I will assure that the allocation referenced in item 12 (A) will be evidenced by an entry on the records of the County maintained with respect to the Reimbursement Obligations, (B) will specifically identify the Expenditure being reimbursed, and (C) on the advice of the appropriate counsel will be sufficient to relieve the allocated proceeds of the Reimbursement Obligations covered by such entry from any restrictions under the relevant legal documents and applicable state law that apply only to unspent proceeds of Reimbursement Obligations. 2 14. I further acknowledge that I will assure that except as referenced in item 15 the proceeds of the Reimbursement Obligations that are used to reimburse the Expenditures will not be used, directly or indirectly, (A) to pay debt service on an issue of tax-exempt obligations, (B) to create or increase the balance in a sinking fund established for the payment of debt service on the Reimbursement Obligations or another issue of tax- exempt obligations of the County or to replace funds that have been, are being, or will be so used for reserve or replacement fund purpose, or (D) to reimburse any expenditures or any payment with respect to financing of an expenditure that was originally paid with proceeds of any tax-exempt obligations of the County to any person or entity other than the County. 15. I understand that item 14 does not prohibit the use of those proceeds of the Reimbursement Obligations that are used to reimburse the Fxpenditurep for (A) deposit in a bona fide debt service fund (that is, a fund established to pay debt service on any tax-exempt obligation of the County, other than the Reimbursement Obligation, which is depleted annually except for a reasonable carry over amount not in excess of one (1) year's interest earnings on said fund or one-twelfth (1/12th) of annual debt service), (B) to pay current debt service coming due within the next succeeding one-year period on any tax-exempt obligation of the County, other than the Reimbursement Obligations, or (C) to reimburse for expenditures originally made from the proceeds of a tax-exempt obligation of the County which were not reasonably expected by the County, on the date of issue of such obligation, to be used for such expenditure. IN WITNESS WHEREOF, the undersigned has executed this declaration of official intent this day of County las.rl-oak174 3 XIMMUNITY MENTAL HEALMI t_ ourti" AUTHORITY Memorandum Date: September 11, 2006 To: Authority Board M From: William J. Allen RE: Resolution— Housing Purchases through County Building Authority A few months ago I was contacted by Marc Craig of Community Housing Network (CHN) to discuss ways in which either CHN or the Authority could purchase some of the group homes serving Authority consumers. Marc's concern was that some of the group homes that we will continue to need into the future could be sold by current owners who have expressed interest in doing so. In addition, he had noted that as leases expire, some of the group home owners are increasing the rent costs significantly. As we discussed this matter, we also noted there could be additional savings (property tax savings) if the group homes where owned in the public sector (County, CMH Authority, etc.), which would not be the case if owned by CHN. Therefore, we discussed the best method to pursue this initiative. I indicated to Marc that the Authority could not issue bonds in accordance with the Mental Health Code. Marc in turn retained the support of John McCulloch to approach the County regarding this matter since the County can issue bonds and can purchase property through the County Building Authority. Shortly thereafter Marc and I met with John McCulloch (Drain Commissioner & former County Commissioner), Bob Daddow (Deputy County Executive), Lori Van Pelt (County Director of Management and Budget) and John Axe (County Bond Counsel) to discuss this matter. The County representatives were very supportive of this plan. Based on our meeting with the County officials, we realized that the County could issue tax exempt bonds and purchase group homes at a significant savings to the Authority. The homes could be paid off over a 20 year period with ownership then transferring to the Authority. During that 20 year period there would be savings based on good interest rates on the bonds of 4-5%. In addition, there would be savings in tax payments in that the group homes would owned by the County Building Authority initially and the Authority eventually. In either case since the owner would be a governmental entity, the homes would be exempt from property taxes. Based on discussions with the County representatives, it was determined that it would be in the best interest of the Authority and our consumers if we could purchase some of the group homes and convert the savings into improved housing for consumers. For instance, savings from this initiative could be utilized for down payments on houses, condominiums and other properties for consumers and as a means to subsidize housing costs for consumers. In considering this plan we also recognize that it is important that any savings be utilized to the benefit of consumers; not for any administrative matters outside of the cost of setting up and implementing this plan. 1 Septemberil, 2006 A COST REDUCTION STRATEGY FOR GROUP HOMES SERVING CONSUMERS OF THE OAKLAND COUNTY COMMUNITY MENTAL HEALTH AUTHORITY Background Over the last thirty years, Michigan has pursued a policy of closing state operated institutions in favor of less restrictive community based residences for people with disabilities. Particularly for persons with developmental disabilities, six person group homes served as a primary vehicle for achieving this objective in most parts of the state, including Oakland County. Most of these group homes have been owned by private investors and leased either to the State of Michigan or to the local Community Mental Health agency. Some of these homes were newly constructed to provide barrier free accessibility and other unique features, while others were existing homes with only minimal modifications. There are currently 185 group homes serving consumers of the Oakland County Community Mental Health Authority (Authority) in locations scattered across most communities of the county. Community Housing Network provides property management services for the Authority for these group homes. Predictably, the cost of leasing and maintaining these homes continues to rise as the value of the property increases. At the same time, we also see increases in property taxes, insurance, and the cost of maintenance materials and labor. While the Authority is working to foster a broader array of safe, affordable and more inclusive housing alternatives for Oakland County consumers, it is likely that there will be a need for a number of group homes for the foreseeable future. In addition to the usual cost increases, in some cases the owners are indicating that they want significant increases in rent payments when leases are renewed or taken over from the state. In some cases owners simply want to sell the property (ies) and get out of the business. When this occurs for homes that are still needed and desired by residents, it creates an additional financial and programmatic challenge for our system. It is evident that there is a need for more effective strategies to preserve some of the existing group homes in a cost effective mariner, and to ultimately capture equity in these homes that is currently being lost. This would produce both short term cost savings of scarce general fund dollars for the Authority, and could ultimately provide long term capital dedicated (primarily) to creating and maintaining permanent affordable housing for Oakland County citizens with disabilities. 1 Other considerations: 1. While local communities may be concerned about lost property tax revenue, the number of houses involved is relatively small and they are spread across the county. It is important to remember that the savings will benefit our most vulnerable citizens. 2. This would be a new responsibility for the Authority. Although, we are not interested in being in the real estate business or increasing our size through real estate holdings, this plan does significantly assist cost containment and create an asset base to benefit consumers. Under this plan, the Authority would continue utilize the services of Community Housing Network to manage the group home properties. 3. During the 20 year period that the properties are owned by the Building Authority, they will be leased by the County and sub-leased to the Authority. For all practical purposes, including insurance and major maintenance, the Authority will be the same as the owner. 4. Some advocates/stakeholders may not like this plan, as they may view this as purely a cost saving plan that does not honor consumer choice and true community integration. It is important that the Authority take appropriate steps to make sure that this does not occur. It is important to remember that affordable housing for citizens with disabilities is not a challenge that is exclusive to the Authority. The county as a whole, and all of the individual communities within it, must play a role in creating communities in which all citizens may fully participate. This strategy is but one step in that direction. 3 Draft of proposed homes to be purchased and sample rates Annual Cost Annual Current Annualized Est. Insurance Bond- 20 Year Difference Location Lessee Base Rent Tax Insurance Total Appraised Tax Blanket Policy Principal Interest-a4.5% Total (F-K) Clarkston CHN 24,888.00 Exempt 1,212.00 26,100.00 255,000.00 Exempt 939.00 7,381.28 11,324.00 19,644.28 6,455.72 Milford State 22,136.64 7,200.00 2,100.00 31,436.64 255,000.00 Exempt 939.00 7,381.28 11,324,130 19,644.28 11,792.36 Novi CNN 17,406.48 5,523.76 2,196,00 25,126,24 275,000.00 Exempt 939.00 8,600.38 12,199.06 21.738.44 3,387.80 Oxford State 25,466.28 5,148.00 1,536.00 32,150.28 260,000.00 Exempt 939.00 8,131.26 11,533.65 20,603.91 11,546.37 Southfield CHN 19,933.20 5,476.21 995.00 26,404.41 235,000.00 Exempt 939.00 7,349.41 10,424.65 18,713.06 7,691.35 W. Bloomfield CNN 22,869.00 6,229.25 941.00 30,039.25 225,000.00 Exempt 939 00 7,036.67 9,981.05 17,956.72 12,082.53 Troy CHN 21,420.00 Exempt 977.00 22,397.00 220,000.00 Exempt 939.00 6,880.30 9,759.24 17,578.54 4,818.46 Ortonvitle State 19,610.40 6,000.00 1.428.00 27,038.40 200,000.00 Exempt 939.00 6,254.82 8,872.04 16,065.86 10,972.54 Ortonville CNN 18,375.00 4,308.22 1,950.00 24,633.22 210,000.00 Exempt 939.00 6,567.56 9,315.64 16,822.20 7,811.02 Rochester Hills State 15,586.20 4,500.90 1,250.00 21,346.20 255,000.00 Exempt 939.00 7,381.28 11,324.00 19,644.28 1,701.92 Farmington Hills CNN 26,076 00 Exempt 1,122.00 21,198.00 280,000.00 Exempt 939.00 8,756.75 12,420 86 22,116.61 5,081.39 Holly State 20,908.32 5,112.00 2,004.00 28,024.32 230,000.00 Exempt 939.00 7,193.04 10,202.85 18,334.89 9,689.43 LakeOnon State 23,525.04 5,184.00 1,896.00 30,605.04 270,000.00 Exempt 939.00 8,444.01 11,977.25 21,360.26 9,244.78 Troy State 15,702.72 3,084.00 1,392.00 20,178.72 255,000.00 Exempt 939.00 7,381.28 11,324.00 19,644.28 534.44 Oxford State 23,945.64 6,012.00 2,352_00 32,309.64 290,000.00 Exempt 939.00 9,069.49 12,864.46 22,872.95 9.436.69 Oxford State 23,133 60 4,716.00 2,124.00 29,973.60 280,000.00 Exempt 939.00 4,984.06 8,756.75 12,420.86 17,552.74 Oxford State 12,326.04 4,560.00 1,428.00 18,314.04 265,000.00 Exempt 939.00 8,287.63 11,755.45 20,982.08 (2,668.04) Addison Twp. State 17,107.80 4,428.00 1,680,00 23,215.80 270,000.00 Exempt 939.00 8,444.01 11,977.25 21,360.26 1,855.54 Highland State 16,476.00 3,780.00 1,140.00 21,396.00 235,000.00 Exempt 939.00 7,349.41 10,424.65 18,713.06 2,682.94 Southfield CNN 29,061.96 9,008.53 1,317.00 39,387.49 315,000.00 Exempt 939.00 9,351.34 13,973.46 24,763.80 14,623.69 Waterford CHN 15,275.76 3,646.41 981.00 19,903.17 165,000.00 Exempt 939.00 5,160.23 7,319.43 13,418.66 6,484.51 431,230.08 93,916.38 32,031.00 557,177.46 5,245,000.00 19,719.00 157,885.49 229,053.74 404,399.28 152,778.18 BOARD MEETING September 19, 2006 6:00 p.m. DRAFT Board Members Present: Staff Present, Who Signed In: Others Present, Who Signed In: COMMUNITY MENTAL HEALTH AUTHORITY Mrs. Summers, Mr. Simmons, Mr. Bowker, Mrs. Rzepecki, Mr. Dillaber, Mr, Ellis Mrs. LeBrun, Mr. Pratnicki, Dr. Arrington, Mr. Farragher, Mr. Ruskin, Dr. Taub S. Bassett, M. Griffiths, R. Hocking, K. Kovach, R. Duff, C. Witcher, R. Grove, L. Rosen, B. Riley, S. Pelkey, V. Suder, K. Walendzik, B. Horstman J. Heller, N. Carter, C. Brayton, J. Wilson, T. Millon, B. Thomas, P. Thomas, D. Fische!, B. Kotula, P. Howell, B. Wirth, K. Goddard, B. Dagenais, J. Feijio, R. Daddow, L. VanP elt, C. Loveday, C. Totten CALL TO ORDER, PLEDGE OF ALLEGIANCE AND ROLL CALL J. Summers, Board Chair, called the meeting to order at 6:01 p.m. in the CMH Board Conference Room. The Pledge of Allegiance was recited and roll call was taken. DETERMINATION OF A QUORUM A quorum was determined with all Board members present. PUBLIC COMMENT The following people made public comment: D. McKelvey, F. Cummins and C. Patel. AGENDA Motion by S. Ruskin and supported by J. Bowker to suspend the rules and approve the agenda. Motion was adopted by voice vote. A. CONSENT AGENDA Motion by S. Ruskin and supported by J. Bowker to approve the board minutes of 8/15/06 and to accept the CAC Minutes of 8/16/06 and to accept the Recipient Rights Advisory Committee Minutes of 8/3/06. Motion was adopted by voice vote. B. JUNE 2006 FINANCIAL STATEMENTS: R. Grove gave a brief overview of the financial statements for the month ended July 31, 2006 and indicated to the Boar d members that the financial statements were thoroughly discussed the Business Operations Committee Meeting. C. FY06/07 ANNUAL PLAN: J. Brown presented the FY06/07 Annual Plan. The plan includes significant community and consumer input. Providers were also included in the development of this plan. Feedback received during the planning process will be used to develop the work plan for FY07 and will include measurable goals. Motion by A. Simmons and supported by E Rzepecki to approve the FY06/07 Annual Plan as presented. Ayes: Mrs. Rzepecki, Mr. Dillaber, Mr. Simmons, Mrs. Summers, Dr. Arrington, Mr. Ellis Mr. Bowker, Mr. Pratnicki, Mr. Ruskin, Mr. Farragher, Dr. Taub, Mrs. LeBrun Abstain: None Nays: None September 19, 2006 Board Meeting Minutes Page 1 of 3 Motion was adopted. D. LEGAL COUNSEL: Mr. Ellis provided background for the request for proposal (REP) process for legal counsel. An ad was placed in several publications announcing the RF P and it was sent to firms that expressed an interest. Members of the committee that reviewed the REP's were Judi Summers, Jerry Ellis, Bob Dillaber, Bill Allen, Jeff Brown and Caroline Babb-Leahey. The committee reviewed all proposals received and interviewed two firms. The committee recommends Johnson, Rosati as legal counsel for the Authority. Motion by J. Ellis and supported by J. Bowker to approve the law firm as recommended by the committee and finalized the contract with them. Motion was adopted by voice vote. E. RESOLUTION — HOUSING PURCHASES THROUGH COUNTY BUILDING AUTHORITY: B. Allen shared that this item was discussed at both committee meetings. As requested at the Business Operations Committee meeting additional information was sent to all Board members regarding long term savings if the homes are purchased using housing bonds. The savings would be used for the housing needs of consumers. The homes would be owned by the Building Authority and leased to the Authority until the bonds are paid at which time ownership would transfer to the Authority. The resolution (attached) allows the Executive Director to explore this with Oakland County and see if the Oakland County Board of Commissioners will approve the bond purchase. A contract for the purchase of • homes through the Building Authority would still come before the Authority Board for approval at a later date. Motion by A. Simmons and supported by S Taub to call the question. Motion passed by voice vote. Motion by J. Ellis and supported by J. Bowker to approve the resolution as presented to explore purchasing homes through the Building Authority. Ayes: Mrs. Rzepecki, Mr. Dillaber, Mr. Simmons, Mrs. Summers, Dr. Arrington, Mr. Ellis Mr. Bowker, Mr. Ruskin, Mr. Farragher, Dr. Taub, Mrs. LeBrun Abstain: None Nays: Mr. Pratnicki Motion was adopted. F. STANDING COMMITTEE REPORTS: Policy Management: Dr. Arrington reported the Policy Management Committee discussed the housing resolution. Business Operations: Mr. Simmons reported the Business Operations Committee reviewed the financial statements and discussed the housing resolution. G. DIRECTOR'S REPORT: B. Allen distributed the (attached) Director's Report to Board members and thanked them for their support during his tenure as Executive Director. He reminded Board members that issues for the future include Medicaid funding, Funding Equity and Admin costs. OTHER BUSINESS: September 19, 2006 Board Meeting Minutes Page 2 of 3 Mrs. Summers presented B. Allen with a plaque in his honor for his leadership as the Authority's Executive Director. The plaque will be hung in a location to be determined at the Authority. BOARD MEMBER COMMENTS The following board members made comment: L. Pratnicki, R. Dillaber, J. Ellis, S. Ruskin, E. Farragher, E. Rzepecki, A. Simmons, J. Bowker, B. Arrington, M. LeBrun, S. Taub and J. Summers ADJOURNMENT At 7:32 p.m. J. Summers, Board Chair, adjourned the meeting. Eleanor Rzepecki, Board Secretary June Bodmer, Reporter The foregoing minutes are subject to Board approval. September 19, 2006 Board Meeting Minutes Page 3 of 3 UTH OR IT Y Attachment A WILLIAM J. ALLEN, EXECUTIVE DIRECTOR RESOLUTION Housing Purchases through County Building Authority WHEREAS, there are 185 group homes serving consumers of the Oakland County Community Mental Health Authority and some of these homes could be sold and the residents required to relocate to other locations; and WHEREAS, the cost of leasing some of the group homes will increase significantly as current leases expire; and WHEREAS, the Oakland County Board of Commissioners has the authority to issue tax exempt bonds to purchase property through the Oakland County Building Authority; and WHEREAS, Oakland County officials have indicated their willingness to seek approval from the Oakland County Board of Commissioners to issue tax exempt bonds for the purchase of certain group homes and to enter into an agreement with the Oakland County CMH Authority to sublease such homes to the CMH Authority and transfer ownership of the homes to the Oakland County CMH Authority after the bonds are paid off. NOW, THEREFORE, BE IT RESOLVED that the Oakland County CMH Authority recommends and requests that the Oakland County Board of Commissioners develop and implement a plan to issue tax exempt bonds for the purchase of 8 to 18 group homes on behalf of the Oakland County CMH Authority. BE IT FURTHER RESOLVED that the Executive Director of the Oakland County CMH Authority is authorized to negotiate an agreement between the Oakland County Board of Commissioners and the Oakland County CMH Authority that spells out the arrangements of subleasing such homes to the Oakland County CMH Authority until such time the bonds are paid off at which time the ownership will be transferred from the County Building Authority to the Oakland County CMH Authority. BE IT FURTHER RESOLVED that when finalized this agreement shall be presented to the Oakland County CMH Authority Board for approval. BE IT FURTHER RESOLVED that the consumers residing in group homes in Oakland County will not have their choice limited in any fashion as to where they live including the choice of whether or not to five in these group homes owned by the Building Authority or the Oakland County CMH Authority. BE IT FURTHER RESOLVED that at no time will the Oakland County CMH Authority make arrangements to purchase additional group homes that would take the total percentage of all group homes in Oakland County that are owned by the Oakland County CMH Authority or the Building Authority above 20%. Page 1 of 2 BE IT FURTHER RESOLVED that all savings from this initiative will be utilized only to the benefit of consumers of the Oakland County CMH Authority, with primary use of such savings planned to meet housing needs of consumers. BE IT FURTHER RESOLVED that any homes purchased through this arrangement that are sold at any time in the future shall first be offered for sale to consumers and/or family members of consumers. Adopted this 19th day of September, 2006. 94.4c.tiec J ith Summers, Chairperson I, Eleanor Rzepecki, Secretary of the Oakland County CMH Authority, do hereby certify that the foregoing is a true and correct copy of a Resolution unanimously adopted by the Board of the Authority,at its regular scheduled meeting held on September 19, 2006. .-7 nor Rzepecki, Setfetary Page 2 of 2 Resolution #06234 November 30, 2006 The Chairperson referred the resolution to the Finance Committee. There were no objections. 3 FISCAL NOTE (M.R. 406234) December 14, 2006 BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON IN RE: RESOLUTION AUTHORIZING THE OAKLAND COUNTY BUILDING AUTHORITY TO FINANCE A PROJECT TO ACQUIRE FACILITIES LOCATED IN OAKLAND COUNTY, MICHIGAN TO BE USED BY THE OAKLAND COUNTY COMMUNITY MENTAL HEALTH AUTHORITY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The resolution authorizes the Board of Commissioners to pledge the full faith and credit of the County of Oakland for the payment of principal and interest on Building Authority Bonds under a General Obligation Lease Contract between the Building Authority and Oakland County. 2. The Contract covers the issuance of one or more series of bonds, in a maximum amount of $5,500,000, and at an interest rate not to exceed 8% per annum; the term of the Lease will not exceed 35 years. 3. Bond proceeds will be used in the purchase of various properties located in Oakland County, to be used as supportive housing for clients of the Oakland County Community Mental Health Authority. 4. The statutory debt limit for County debt is $7,643,972,585 (10% of State Equalized Value). As of Seotember 30, 2006, the total pledged debt is $347,219,167 or approximately .45% of the S.E.V. 5. The Oakland County Community Mental Health Authority will pay for the bonds semi-annually to cover the debt service payments. 6. No budget amendment is required. FINANCE COMMITTEE eif-zvci( /171-e2.S> FINANCE COMMITTEE Motion carried on a roll call vote with Rogers absent. Resolution #06234 December 14, 2006 Moved by Molnar supported by Gregory the resolutions (with fiscal notes attached) on the Consent Agenda, be adopted (with accompanying reports being accepted). AYES: Coulter, Crawford, Douglas, Gershenson, Gregory, Hatchett, Jacobsen, Jamian, KowaII, Long, Melton, Middleton, Molnar, Moss, Nash, Palmer, Potter, Rogers, Scott, Suarez, Wilson, Zack, Bullard. (23) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent Agenda, were adopted (with accompanying reports being accepted). 'NM Y APPROVE THE FOREGOING RESOLUTION STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Ruth Johnson, 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 December 14, 2006, 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 14th day of December, 2006. Rutfflitrrfttan, County Clerk a. 411 Is