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HomeMy WebLinkAboutResolutions - 2007.08.16 - 28359MISCELLANEOUS RESOLUTION #07180 _ August 2, 2007 BY: PLANNING AND BUILDING COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: DRAIN COMMISSIONER — GEORGE W. KUHN DRAINAGE DISTRICT DRAIN BONDS — FULL FAITH AND CREDIT RESOLUTION TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS, the Drainage Board for the George W. Kuhn Drain, by resolution adopted on July 17, 2007, authorized and provided for the issuance by the George W. Kuhn Drainage District of its Drain Bonds, Series 2007G in the aggregate principal amount of not to exceed $2,500,000 to defray part of the cost of the George W. Kuhn Drain; and WHEREAS, the Drain Bonds, Series 2007G will not exceed in the aggregate $2,500,000, will be dated as of such date, will bear interest at such rates not to exceed 8% per annum, will be in the aggregate principal amount, will mature in such years and principal amounts, and will be subject to redemption prior to maturity as shall be determined by the Oakland County Drain Commissioner as Chairperson of the Drainage Board for the George W. Kuhn Drainage District; and WHEREAS, the Drainage Board deems it advisable and necessary to obtain from this Board a resolution pledging the full faith and credit of the County of Oakland (the "County") for the payment of the principal of and interest on the Drain Bonds, Series 2007G (the "Bonds"); and WHEREAS, the George W. Kuhn Drain is necessary to protect and preserve the public health and, therefore, it is in the best interest of the County that the Bonds be sold. NOW, THEREFORE, BE IT RESOLVED: 1. Pursuant to the authorization provided in Section 474 of the Drain Code of 1956, as amended, the Board of Commissioners of the County hereby pledges irrevocably the full faith and credit of the County for the prompt payment of the principal of and interest on the Drain Bonds, Series 2007G not to exceed in the aggregate $2,500,000, and agrees that, in the event the public corporations assessed for the cost of the George W. Kuhn Drain shall fail or neglect to account to the County Treasurer of the County for the amount of any special assessment installment and interest when due, the amount thereof shall be advanced immediately from County funds, and the County Treasurer is directed to make such advancement to the extent necessary. 2. In the event that, pursuant to the pledge of full faith and credit, the County advances out of County funds all or any part of an installment and interest, it shall be the duty of the County Treasurer, for and on behalf of the County, to take all actions and proceedings and pursue all remedies permitted or authorized by law for the reimbursement of such sums so paid. 3. The County Treasurer or the financial consultant, Municipal Financial Consultants, is authorized to file with the Department of Treasury of the State of Michigan on PLANNING & BUILDING COMMITTEE VOTE: Motion carried on a roll call vote with Jacobsen and Woodward absent. 'LANNING AND BUILDING CO ITTEE ' PLANNING AND BUILDING COMMITTEE behalf of the County an Application for the State Treasurer's Approval to Issue Bonds with respect to the Bonds. 4. The County Treasurer is authorized, if necessary, to approve the circulation of a preliminary and final official statement for the Bonds, to cause the preparation of those portions of the preliminary and final official statement that pertain to the County, and to do all other things necessary for compliance with Rule 15c2-12 issued under the Securities Exchange Act of 1934, as amended (the "Rule"). The County Treasurer is authorized to execute and deliver such certificates and to do all other things that are necessary to effectuate the sale and delivery of the Bonds. 5. The County Treasurer is hereby authorized, if necessary, to execute and deliver in the name and on behalf of the County (i) a certificate of the County to comply with the requirements for a continuing disclosure undertaking of the County pursuant to subsection (b)(5) of the Rule and (ii) amendments to such certificate from time to time in accordance with the terms of such certificate (the certificate and any amendments thereto are collectively referred to herein as the "Continuing Disclosure Certificate"). To the extent a Continuing Disclosure Certificate is executed and delivered, the County hereby covenants and agrees that it will comply with and carry out all of the provisions of such Continuing Disclosure Certificate. The remedies for any failure of the County to comply with and carry out the provisions of the Continuing Disclosure Certificate shall be as set forth therein. Mr. Chairperson, on behalf of the Planning and Building Committee, I move adoption of the foregoing resolution. Resolution #07180 August 2, 2007 The Chairperson referred the resolution to the Finance Committee. There were no objections. FISCAL NOTE (M.R. #07180) August 16, 2007 BY: FINANCE COMMITTEE, MIKE ROGERS, CHAIRPERSON IN RE: DRAIN COMMISSIONER - GEORGE W. KUHN DRAINAGE DISTRICT DRAIN BONDS - FULL FAITH AND CREDIT RESOLUTION 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 Drainage Board for the George W. Kuhn Drain is requesting that the Board of Commissioners pledge the full faith and credit of the County of Oakland for the payment of principal and interest on the George W. Kuhn Drainage District Drain Bonds, Series 2007G pursuant to the Drain Code of 1956 as amended. 2. The bond issue is not to exceed $2,500,000 and is to be used for Structural Repairs and Access Gate Replacement Contract 6a. 3. The Bonds shall bear an interest rate not to exceed 8% per annum, will be in aggregate principal amounts, will mature in such years and principal amounts and will be callable prior to maturity as determined necessary by the Drainage Board for the George W. Kuhn Drainage District. 4. However, it is anticipated that the bonds will be sold to the Michigan Municipal Bond Authority, as part of their Michigan Water Pollution Control Revolving loan Program at 1.625% interest rate. It is anticipated that the Series 2007G bonds will be sold in September 2007. 5. The statutory limit for County debt is $7,733,108,203 (10% of State Equalized Value). As of June 30, 2007, the total pledged debt is $330,675,408 or approximately .43% of the S.E.V. 6. The estimated project cost of $2,500,000 will be apportioned to the following Public Corporations as follows with $153,992.50 or 6.1597% to the City of Berkley, $115,885.00 or 4.6354% to City of Birmingham, $140,622.50 or 5.6249% to City of Clawson, $244,137.50 or 9.7655% to City of Ferndale, $53,517.50 or 2.1407% to City of Hazel Park, $76,582.50 or 3.0633% to City of Huntington Woods, $257,300.00 or 10.2920% to City of Madison Heights, $320,402.50 or 12.8161% to City of Oak Park, $31,775.00 or 1.2710% to City of Pleasant Ridge, $707,892.50 or 28.3157% to City of Royal Oak, $183,085.00 or 7.3234% to City of Southfield, $62,547.50 or 2.5019% to City of Troy, $39,402.50 or 1.5761% to Township of Royal Oak, $19,860.00 or .7944% to Village of Beverly Hills, $38,162.50 or 1.5265% to Oakland County for county roads and $54,835.00 or 2.1934% to State of Michigan for drainage of state highways. 7. The Public Corporations will pay for the bonds through a Special Assessment Roll for the George W. Kuhn Drain. FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Woodward absent. 8. The State of Michigan and Oakland County will pay their cost up front to opt out of the bond sale and avoid annual bond interest payments. 9. Funding is available in the FY 2007 Non-Departmental Current Drain Assessments account to cover the County's portion of the project. 10. No budget amendment is required. FINANCE COMMITTEE Resolution #07180 August 16, 2007 Moved by Douglas supported by Woodward the resolution (with fiscal note attached) be adopted. AYES: Douglas, Gershenson, Gosselin, Gregory, Greimel, Hatchett, Jacobsen, KowaII, Long, Middleton, Nash, Potter, Potts, Scott, Spector, Suarez, Woodward, Zack, Bullard, Burns, Coulter, Crawford. (22) NAYS: None. (0) A sufficient majority having voted in favor, the resolution (with fiscal note attached) was adopted. 'ONO. Y APPROVE THE MEWING 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 August 16, 2007, 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 16th day of August, 2007.