HomeMy WebLinkAboutResolutions - 2021.12.09 - 35085frOAKILANErF
C O U N I Y M I C H I U A N
BOARD OF COMMISSIONERS
December 9, 2021
MISCELLANEOUS RESOLUTION 421-473
Sponsored By: William Miller III
IN RE: Water Resources Commissioner - Contract Authorize Oakland County Oakland Township
Water Supply System Improvements Bonds, Series 2022
Chairperson and Members of the Board:
WHEREAS the Charter Township of Oakland (the "Township") is in urgent need of water supply system
improvements and facilities constituting a part of a system described in the form of the proposed contract
hereinafter mentioned to be known as the "Oakland County Oakland Township Water Supply System"
(hereinafter sometimes referred to as the "System"), in order to promote the health and welfare of the residents
thereof, which water supply improvements, facilities and system also would benefit the County and its
residents, and the parties to said proposed contract have concluded that such improvements and facilities can be
provided and financed most economically and efficiently by the County through the exercise of the powers
conferred by Act 342, Public Acts of Michigan, 1939, as amended ("Act 342"), and especially Sections 5a, 5b
and 5c thereof, and
WHEREAS by the terms of Act 342, the County and the Township are authorized to enter into a contract for
the acquisition, construction and financing of the water supply system improvements and facilities to serve the
Township and for the payment of the cost thereof by the Township, with interest, and the County is then
authorized to issue its bonds in one or more series to provide the funds necessary therefor; and
WHEREAS there has been submitted to this Board of Commissioners a proposed contract between the County,
by and through the County Water Resources Commissioner, County Agency, party of the first part, and the
Township, party of the second part (the "Contract"), which Contract provides for the acquisition, construction
and financing of the water supply system improvements and facilities constituting the System (the "Project")
and which Contract is hereinafter set forth in full; and
WHEREAS there have also been submitted for approval and adoption by this Board of Commissioners,
preliminary plans, specifications and estimates of the cost and period of usefulness of the water supply system
improvements and facilities, and
WHEREAS this Board of Commissioners desires to establish the System and to proceed with the Project and
the approval and execution of the Contract to acquire, construct and finance the Project as provided in the
Contract; and
WHEREAS the Board of Commissioners also desires to proceed with the acquisition, construction and
financing of the Project and the issuance of the bonds of the County in an aggregate principal amount of not to
exceed $6,000,000 to defray part of the cost of the Project; and
WHEREAS the County has agreed in a Continuing Covenant Agreement dated as of September 27, 2013,
between the County and Bank of America, N.A. (the "Bank of America Continuing Covenant Agreement") to
provide to Bank of America, N.A. certain information pursuant to Article VI, Section 6.05 (f) of the Bank of
America Continuing Covenant Agreement which relates to a final official statement or other offering or
disclosure document prepared in connection with an offering of securities by the County.
NOW THEREFORE BE IT RESOLVED
1. APPROVAL OF PROJECT AND DESIGNATION OF COUNTY AGENCY. This Board of Commissioners
by majority vote of its members -elect does hereby approve, under and pursuant to Act 342, the establishment of
the Oakland County Oakland Township Water Supply System, which shall consist of (i) water supply system
improvements and facilities, as specified and to be located as shown in Exhibit A to the Contract and (ii) the
services provided thereby; that the Project and the System shall serve the Township; that the Oakland County
Water Resources Commissioner is hereby designated and appointed as the "County Agency" for the Project and
the System; that the County Agency shall have all the powers and duties with respect to the Project and the
System as are provided by law and especially by Act 342; and that all obligations incurred by the County
Agency with respect to the Project and the System, unless otherwise authorized by this Board of
Commissioners, shall be payable solely from funds derived from the Township as hereinafter provided.
2. PLANS AND SPECIFICATIONS — ESTIMATES OF PERIOD OF USEFULNESS AND COST. The
preliminary plans and specifications for the Project as contained in Exhibits A and B to the Contract and the
estimates of $5,400,000 as the cost thereof and of 30 years and upwards as the period of usefulness thereof, as
submitted to this Board of Commissioners, are hereby approved and adopted.
3. APPROVAL OF CONTRACT. The Oakland County Oakland Township 2021 Water Supply System
Improvements Contract between the County, by and through the County Water Resources Commissioner, party
of the first part, and the Township, parry of the second part, which Contract has been submitted to this Board of
Commissioners, is hereby approved and adopted, and the County Water Resources Commissioner is hereby
authorized and directed to execute and deliver the same for and on behalf of the County, in as many
counterparts as may be deemed advisable. The Contract is attached to this Resolution hereto as "EXHIBIT t ".
4. AUTHORIZATION OF BONDS — PURPOSE. Bonds of the County aggregating the principal sum of not to
exceed Six Million Dollars ($6,000,000) shall be issued and sold pursuant to the provisions of Act 342, and
other applicable statutory provisions, for the purpose of defraying part of the cost of the Project.
5. BOND DETAILS. The bonds shall be designated "Oakland County Oakland Township Water Supply System
Improvements Bonds, Series 2022," shall be dated as of the date approved by the County Agency; shall be
issued in such aggregate principal amount as determined by the County Agency; shall be numbered from 1
upwards; shall be fully registered; shall be in the denomination of $5,000 each or any integral multiple thereof
not exceeding the aggregate principal amount for each maturity at the option of the purchaser thereof; shall bear
interest at a rate or rates not exceeding 5% per annum as shall be determined by the County Agency at the time
of sale; shall be payable as to interest on such dates as shall be determined by the County Agency; and shall be
serial bonds and/or term bonds and mature in such amounts and on such dates and in such years as shall be
determined by the County Agency; provided, however, that the final maturity of the bonds shall not be later
than June 1, 2052. If requested by the original purchaser of the bonds and determined by the County Agency,
the bonds may be issued in the form of a single bond with an exhibit containing the principal maturity amounts
and applicable interest rates and due dates.
6. PAYMENT OF PRINCIPAL AND INTEREST. The principal of and interest on the bonds shall be payable
in lawful money of the United States. Principal shall be payable upon presentation and surrender of the bonds to
the bond registrar and paying agent as they severally mature. Interest shall be paid to the registered owner of
each bond as shown on the registration books at the close of business on the 15th day of the calendar month
preceding the month in which the interest payment is due. Interest shall be paid when due by check or draft
drawn upon and mailed by the bond registrar and paying agent to the registered owner at the registered address.
7. BOOK -ENTRY SYSTEM. Initially, one fully -registered bond for each maturity, in the aggregate amount of
such maturity, shall be issued in the name of Cede & Co., as nominee of The Depository Trust Company
('DTC") for the benefit of other parties (the "Participants") in the book -entry -only transfer system of DTC. In
the event the County determines that it is in the best interest of the County not to continue the book -entry
system of transfer or that the interests of the holders of the bonds might be adversely affected if the book -entry
system of transfer is continued, the County may notify DTC and the bond registrar and paying agent,
whereupon DTC will notify the Participants of the availability through DTC of bond certificates. In such event,
the bond registrar and paying agent shall deliver, transfer and exchange bond certificates as requested by DTC
and any Participant or "beneficial owner" in appropriate amounts in accordance with this Resolution. DTC may
determine to discontinue providing its services with respect to the bonds at any time by giving notice to the
s responsibilities with resnect thereto under
applicable law or the County may determine that DTC is incapable of discharging its duties and may so advise
DTC. In either such event, the County shall use reasonable efforts to locate another securities depository. Under
such circumstances (if there is no successor securities depository), the County and the bond registrar and paying
agent shall be obligated to deliver bond certificates in accordance with the procedures established by this
Resolution. In the event bond certificates are issued, the provisions of this Resolution shall apply to, among
other things, the transfer and exchange of such certificates and the method of payment of principal of and
interest on such certificates. Whenever DTC requests the County and the bond registrar and paying agent to do
so, the County and the bond registrar and paying agent shall cooperate with DTC in taking appropriate action
after reasonable notice to make available one or more separate certificates evidencing the bonds to any
Participant having bonds certified to its DTC account or to arrange for another securities depository to maintain
custody of certificates evidencing the bonds.
Notwithstanding any other provision of this Resolution to the contrary, so long as any bond is registered in the
name of Cede & Co., as nominee of DTC, all payments with respect to the principal of, interest on and
redemption premium, if any, on such bonds and all notices with respect to the bonds shall be made and given,
respectively, to DTC as provided in the Blanket Issuer Letter of Representations relating to the bonds. The
County Treasurer and the County Agency are each authorized to sign the Blanket Issuer Letter of
Representations on behalf of the County, in such form as such officer deems necessary or appropriate in order
to accomplish the issuance of the bonds in accordance with law and this Resolution.
Notwithstanding any other provision of this section to the contrary, if the County Agency deems it to be in the
best interest of the County, the bonds shall not initially be issued through the book -entry -only transfer system of
DTC.
8. PRIOR REDEMPTION. The bonds shall be subject to optional and/or mandatory redemption prior to
maturity upon such terms and conditions, or shall not be subject to optional or mandatory prior to maturity, as
shall be determined by the County Agency,
9. BOND REGISTRAR AND PAYING AGENT. The County Treasurer shall designate, and may enter into an
agreement with, a bond registrar and paying agent for the bonds which shall be a bank or trust company located
in the State of Michigan which is qualified to act in such capacity under the laws of the United States of
America or the State of Michigan. The County Treasurer from time to time as required may designate a
similarly qualified successor bond registrar and paying agent. Notwithstanding any provision of this section to
the contrary, if the County Agency deems it to be in the best interest of the County, the County Treasurer shall
serve as bond registrar and paying agent for the bonds.
10. EXECUTION, AUTHENTICATION AND DELIVERY OF BONDS. The bonds shall be executed in the
name of the County by the manual or facsimile signatures of the Chairperson of the Board of Commissioners
and the County Clerk and authenticated by the manual signature of the bond registrar and paying agent or an
authorized representative of the bond registrar and paying agent, and the seal of the County (or a facsimile
thereof) shall be impressed or imprinted on the bonds. After the bonds have been executed and authenticated for
delivery to the original purchaser thereof, they shall be delivered by the County Treasurer to the purchaser upon
receipt of the purchase price. Additional bonds bearing the manual or facsimile signatures of the Chairperson of
the Board of Commissioners and the County Clerk and upon which the seal of the County (or a facsimile
thereof) is impressed or imprinted may be delivered to the bond registrar and paying agent for authentication
and delivery in connection with the exchange or transfer of bonds. The bond registrar and paying agent shall
indicate on each bond the date of its authentication.
11. EXCHANGE AND TRANSFER OF BONDS. Any bond, upon surrender thereof to the bond registrar and
paying agent with a written instrument of transfer satisfactory to the bond registrar and paying agent duly
executed by the registered owner or his duly authorized attorney, at the option of the registered owner thereof,
may be exchanged for bonds of any other authorized denominations of the same aggregate principal amount and
maturity date and bearing the same rate of interest as the surrendered bond.
Each bond shall be transferable only upon the books of the County, which shall be kept for that purpose by the
bond registrar and paying agent, upon surrender of such bond together with a written instrument of transfer
satisfactory to the bond registrar and paying agent duly executed by the registered owner or his duly authorized
attorney.
UY:,I-, dire fehan� f fat bond, the h�n l rPgi rrnr nnrl paving agent on behalf of the County shall
cancel the surrendered bond and shall authenticate and deliver to the transferee a new bond or bonds of any
authorized denomination of the same aggregate principal amount and maturity date and bearing the same rate of
interest as the surrendered bond. If, at the time the bond registrar and paying agent authenticates and delivers a
new bond pursuant to this section, payment of interest on the bonds is in default, the bond registrar and paying
agent shall endorse upon the new bond the following: "Payment of interest on this bond is in default. The last
date to which interest has been paid is (appropriate date to be inserted)."
The County and the bond registrar and paying agent may deem and treat the person in whose name any bond
shall be registered upon the books of the County as the absolute owner of such bond, whether such bond shall
be overdue or not, for the purpose of receiving payment of the principal of and interest on such bond and for all
other purposes, and all payments made to any such registered owner, or upon his order, in accordance with the
provisions of section 6 of this Resolution shall be valid and effectual to satisfy and discharge the liability upon
such bond to the extent of the sum or sums so paid, and neither the County nor the bond registrar and paying
agent shall be affected by any notice to the contrary. The County agrees to indemnify and save the bond
registrar and paying agent harmless from and against any and all loss, cost, charge, expense, judgment or
liability incurred by it, acting in good faith and without negligence hereunder, in so treating such registered
owner.
For every exchange or transfer of bonds, the County or the bond registrar and paying agent may make a charge
sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such
exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a
condition precedent to the exercise of the privilege of making such exchange or transfer.
The bond registrar and paying agent shall not be required to transfer or exchange bonds or portions of bonds
which have been selected for redemption.
12. FORM OF BONDS. The bonds shall be in substantially the following form, with such additions, deletions
and modifications as are approved by the County Agency and consistent with the terms of this Resolution:
(FORM OF BOND)
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
OAKLAND COUNTY OAKLAND TOWNSHIP
WATER SUPPLY SYSTEM IMPROVEMENTS BOND, SERIES 2022
INTEREST RATE MATURITY DATE. DATE OF ORIGINAL ISSUE CUSIP
Registered Owner:
Principal Amount:
The County of Oakland, State of Michigan (the "County") acknowledges itself indebted to and for value received
hereby promises to pay to the Registered Owner identified above, or registered assigns, the Principal Amount set forth
above on the Maturity Date specified above, unless redeemed prior thereto as hereinafter provided, upon presentation
and surrender of this bond at in the city of
Michigan, the bond registrar and paying agent, and to pay to the Registered Owner, as shown on the registration books at
the close of business on the 15th day of the calendar month preceding the month in which an interest payment is due, by
check or draft drawn upon and mailed by the bond registrar and paying agent by first class mail postage prepaid to the
Registered Owner at the registered address, interest on such Principal Amount from the Date of Original Issue or such
later date through which interest shall have been paid until the County's obligation with respect to the payment of such
Principal Amount is discharged at the rate per annum specified above. Interest is payable on the first day of
and in each year, commencing 1, 201_. Principal and interest are payable in lawful money of
the United States of America. Interest shall be computed on the basis of a 360-day year of twelve 30-day months.
This bond is one of a series of bonds aggregating the principal sum of
Dollars ($ ) issued by the County under and pursuant to and in full conformity with the Constitution and Statutes
of Michigan (especially Act No. 342, Public Acts of 1939, as amended) and a bond authorizing resolution adopted by the
Board of Commissioners of the County (the "Resolution") for the purpose of defraying part of the cost of acquiring and
constructing water supply facilities to improve, enlarge and extend the Oakland County Oakland Township Water Supply
System to serve the County and the Charter Township of Oakland (the "Township"). The bonds of this series are issued
in anticipation of payments to be made by the Township in the aggregate principal amount of
Dollars ($ ), pursuant to the Oakland County Oakland Township 2021 Water
Supply System Improvements Contract dated as of October 1, 2021 between the County and the Township. The full faith
and credit of the Township has been pledged to the prompt payment of the foregoing amount and the interest thereon as
the same become due. Taxes levied by the Township to make such payments are subject to constitutional, statutory and
charter tax limitations. As additional security the full faith and credit of the County have been pledged for the prompt
payment of the principal of and interest on the bonds of this series. Taxes levied by the County to pay the principal of and
interest on the bonds of this series are subject to constitutional and statutory tax limitations.
This bond is transferable, as provided in the Resolution, only upon the books of the County kept for that purpose
by the bond registrar and paying agent, upon the surrender of this bond together with a written instrument of transfer
satisfactory to the bond registrar and paying agent duly executed by the Registered Owner or his attorney duly authorized
in writing. Upon the exchange or transfer of this bond a new bond or bonds of any authorized denomination, in the same
aggregate principal amount and of the same interest rate and maturity, shall be authenticated and delivered to the
transferee in exchange therefor as provided in the Resolution, and upon payment of the charges, if any, therein provided.
Bonds so authenticated and delivered shall be in the denomination of $5,000 or any integral multiple thereof not
exceeding the aggregate principal amount for each maturity.
The bond registrar and paying agent shall not be required to transfer or exchange bonds or portions of bonds
which have been selected for redemption.
MANUAI UKY rmuR KCuc iiPTION
Bonds maturing in the year _ are subject to mandatory prior redemption at par and accrued interest as follows:
Redemotion Date
Principal Amount of
Bonds to be Redeemed
Bonds or portions of bonds to be redeemed by mandatory redemption shall be selected by lot.
(REPEAT IF MORE THAN ONE TERM BOND)
OPTIONAL PRIOR REDEMPTION
Bonds maturing prior to 1, 20_, are not subject to redemption prior to maturity. Bonds maturing on
and after 1, 20_, are subject to redemption prior to maturity at the option of the County, in such order as shall
be determined by the County, on any date on and after 1, 20 . Bonds of a denomination greater than $5,000
may be partially redeemed in the amount of $5,000 or any integral multiple thereof. If less than all of the bonds maturing
in any year are to be redeemed, the bonds or portions of bonds to be redeemed shall be selected by lot. The redemption
price shall be the par value of the bond or portion of the bond called to be redeemed plus interest to the date fixed for
redemption and a premium as follows:
of the par value of each bond called for redemption on or after 1, 20_, but prior to
1, 20_;
of the par value of each bond called for redemption on or after 1, 20_, but prior to
1, 20_;
No premium if called for redemption on or after 1, 20_
Not less than thirty days' nor more than sixty days' notice of redemption shall be given to the holders of bonds
called to be redeemed by mail to the registered holder at the registered address. Bonds or portions of bonds called for
redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the bond registrar
and paying agent to redeem the same.
It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be
performed precedent to and in the issuance of the bonds of this series, existed, have happened and have been performed
in due time, form and manner as required by law, and that the total indebtedness of the County, including the series of
bonds of which this bond is one, does not exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF, the County of Oakland, Michigan, by its Board of Commissioners, has caused this bond
to be executed in its name by facsimile signatures of the Chairperson of the Board of Commissioners and the County
Clerk and its corporate seal (or a facsimile thereof) to be impressed or imprinted hereon. This bond shall not be valid
unless the Certificate of Authentication has been manually executed by an authorized representative of the bond registrar
and paying agent.
COUNTY OF OAKLAND
Chairperson, Board of Commissioners
(SEAL)
County Clerk
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within mentioned Resolution.
Bond Registrar and Paying Agent
By
Authorized Representative
AUTHENTICATION DATE:
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
(please print or
type name, address and taxpayer identification number of transferee) the within bond and all rights thereunder and hereby
irrevocably constitutes and appoints
attorney to
transfer the within bond on the books kept for registration thereof, with full power of substitution in the premises.
Dated:
Signature Guaranteed:
Signature(s) must be guaranteed by an eligible guarantor institution participating in a Securities Transfer
Association recognized signature guarantee program.
(END OF BOND FORM)
13. SECURITY. The bonds shall be issued in anticipation of payments to be made by the Township pursuant to
the Contract. The bonds shall be secured primarily by the full faith and credit pledge made oy the i ownsnip in
the Contract pursuant to the authorization contained in Act 342. As additional and secondary security the Rill
faith and credit of the County are pledged for the prompt payment of the principal of and interest on the bonds
as the same shall become due. If the Township shall fail to make a payment to the County which is sufficient to
pay the principal of, premium, if any, and interest on the bonds as the same shall become due, then an amount
sufficient to pay the deficiency shall be advanced from the general fund of the County. Taxes imposed by the
County shall be subject to constitutional and statutory limitations.
14. DEFEASANCE. In the event cash or direct obligations of the United States or obligations the principal of
and interest on which are guaranteed by the United States, or a combination thereof, the principal of and interest
on which, without reinvestment, come due at times and in amounts sufficient to pay, at maturity or irrevocable
call for earlier optional redemption, the principal of, premium, if any, and interest on the bonds, or any portion
thereof, shall have been deposited in trust, this Resolution shall be defeased with respect to such bonds, and the
owners of the bonds shall have no further rights under this Resolution except to receive payment of the principal
of, premium, if any, and interest on such bonds from the cash or securities deposited in trust and the interest and
gains thereon and to transfer and exchange bonds as provided herein.
15. PRINCIPAL AND INTEREST FUND. There shall be established for the bonds a Principal and Interest
Fund which shall be kept in a separate bank account, provided, however, that such Principal and Interest Fund
may be pooled or combined for deposit or investment purposes with other debt retirement funds created for
nonvoted debt of the County (other than any special assessment debt). From the proceeds of the sale of the
bonds there shall be set aside in the Principal and Interest Fund any premium as determined by order of the
County Agency and any accrued interest received from the purchaser of the bonds at the time of delivery of the
same. All payments received from the Township pursuant to the Contract are pledged for payment of the
principal of and interest on the bonds and expenses incidental thereto and as received shall be placed in the
Principal and Interest Fund.
16. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the bonds shall be set aside in a
construction fiord or funds for the Project and used to defray the cost of the Project in accordance with the
provisions of the Contract.
17. APPROVAL OF MICHIGAN DEPARTMENT OF TREASURY — EXCEPTION FROM PRIOR
APPROVAL. The issuance and sale of the bonds shall be subject to the County obtaining qualified status or
prior approval from the Department of Treasury of the State of Michigan pursuant to Act 34, Public Acts of
Michigan, 2001, as amended ("Act 34"), and, if necessary, the County Treasurer and County Agency are each
hereby authorized and directed to make application to the Department of Treasury for approval to issue and sell
the bonds as provided by the terms of this Resolution and by Act 34. The County Treasurer and County Agency
are authorized to pay any filing fees required in connection with obtaining qualified status or prior approval
from the Department of Treasury. The County Treasurer and County Agency are further authorized to request
such waivers of the requirements of the Department of Treasury or Act 34 as necessary or desirable in
connection with the sale of the bonds.
18. SALE. ISSUANCE, DELIVERY. TRANSFER AND EXCHANGE OF BONDS. County Agency shall
determine the principal amount of the Bonds to be sold and shall determine the other bond details as described
in Section 2 hereof, the terms and conditions for optional and/or mandatory redemption, and any premium to be
set aside in the Principal and Interest Fund as described in Section 12 hereof. The Bonds shall be sold at a
competitive sale in accordance with the provisions of Act 34 and other applicable laws of this state. In
connection therewith, the County Agency shall set the time and date for the sale of the Bonds and prescribe the
form of notice of sale for the Bonds and do all things necessary to effectuate the sale, issuance, delivery,
transfer and exchange of the Bonds in accordance with the provisions of this Resolution. The Bonds shall be
sold at a price that is not less than 99% of their par value, as determined by the County Agency. The County
Agency is hereby authorized to approve by written order the interest rates on the bonds and the winning bidder
upon the sale of the bonds. The County Agency, the County Treasurer, the County Clerk and other County
officials and employees are hereby authorized to do all other things necessary to effectuate the sale, issuance,
delivery, transfer and exchange of the Bonds in accordance with the provisions of this Resolution.
19. REPLACEMENT OF BONDS. Upon receipt by the County Treasurer of proof of ownership of an
u,L .Int the, bond boa been lost, anparently destroyed or wrongfully taken
and of security or indemnity which complies with applicable law and is satisfactory to the County Treasurer, the
County Treasurer may authorize the bond registrar and paying agent to deliver a new executed bond to replace
the bond lost, apparently destroyed or wrongfully taken in compliance with applicable law. In the event an
outstanding matured bond is lost, apparently destroyed or wrongfully taken, the County Treasurer may
authorize the bond registrar and paying agent to pay the bond without presentation upon the receipt of the same
documentation required for the delivery of a replacement bond. The bond registrar and paying agent, for each
new bond delivered or paid without presentation as provided above, shall require the payment of expenses,
including counsel fees, which may be incurred by the bond registrar and paying agent and the County in the
premises. Any bond delivered pursuant the provisions of this section 19 in lieu of any bond lost, apparently
destroyed or wrongfully taken shall be of the same form and tenor and be secured in the same manner as the
bond in substitution for which such bond was delivered,
20, TAX COVENANT. The County covenants to comply with all requirements of the Internal Revenue Code of
1986, as amended, necessary to assure that the interest on the bonds will be and will remain excludable from
gross income for federal income tax purposes. The County Agency, the County Treasurer, the County Clerk and
other appropriate County officials are authorized to do all things necessary to assure that the interest on the
bonds will be and will remain excludable from gross income for federal income tax purposes.
21. NOTICE OF ISSUANCE OF BONDS. Within thirty (30) days after the issuance of the bonds, either (1) a
copy of the final official statement or other offering or disclosure document prepared by the County in
connection with the issuance of the bonds or (2) notice that such information has been filed with the Electronic
Municipal Market Access system of the Municipal Securities Rulemaking Board and is publicly available shall
be furnished to Bank of America. N.A. at the following locations:
Bank of America, N.A.
Mail Code: IL4-135-07-28
135 South LaSalle Street
Chicago, IL 60603
Attention: Thomas R. Denes
Bank of America, N.A.
Public Sector Banking Group
Mail Code: MI8-900-02-70
2600 W. Big Beaver Road
Troy, MI 48084
Attention: Susan Molnar,
Senior Credit Support Association
In accordance with the Bank of America Continuing Covenant Agreement, the notices provided for above shall
be in writing and shall be transmitted by e-mail to the following addresses: ryan.denes(abofa.com and
susan.molnar@bofa.com.
22. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they may be in conflict
herewith are hereby rescinded.
Chairperson, the following Commissioners are sponsoring the foregoing Resolution: William Miller III.
/ Date: December 09, 2021
David Woodward, Commissioner
Hilarie Chambers, Deputy County Executive II
r
Lisa Brown, County Clerk / Register of Deeds
Date: December 14, 2021
Date: December 15, 2021
COMMITTEE TRACKING
2021-12-01 Economic Development & Infrastructure - recommend and forward to Finance
2021-12-01 Finance - recommend to Board
2021-12-09 Full Board
VOTE TRACKING
Motioned by Commissioner William Miller III seconded by Commissioner Robert Hoffman to adopt the
attached Contract: Authorize Oakland County Oakland Township Water Supply System Improvements Bonds,
Series 2022.
Yes: David Woodward, Michael Gingell, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen Kowall,
Christine Long, Philip Weipert, Gwen Markham, Angela Powell, Thomas Kuhn, Charles Moss, Marcia
Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Penny Luebs, Janet Jackson, Gary
McGillivray, Robert Hoffman, Adam Kochenderfer (21)
No: None (0)
Abstain: None (0)
Absent: (0)
The Motion Passed.
ATTACHMENTS
1. 4883-8047-4626 v2 Act 342 Contract Water Supply with Exhibits and Cover Page
2. 2021-I1-18 4839-0676-7611 vl Act 34 Notice Full Faith and Credit.revised 11.18.21
3. 2021-12-01 EDI Memo Oakland Twp Water Improvements Series 2022 Bonds.Revised 12.18.21
4. 4888-5531-1876 vl County Bond Resolution (003).rev.11.18.21
5. WRC Bond Resolution.2nd rev. 11.18.21
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
L Lisa Brown, 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 9, 2021,
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 Circuit Court at Pontiac.
Michigan on Thursday, December 9, 2021.
Lisa Brown, Oakland County Clerk/Register of Deeds
Exhibit 1
[Attach Fonn of Contract]
OAKLAND COUNTY OAKLAND TOWNSHIP 2021
WATER SUPPLY SYSTEM IMPROVEMENTS CONTRACT
THIS CONTRACT, made and entered into as of the 1" day of October, 2021, by and
between the COUNTY OF OAKLAND, a county corporation in the State of Michigan
(hereinafter sometimes referred to as the "County"), by and through its Water Resources
Commissioner, County Agency, party of the first part, and the CHARTER TOWNSHIP OF
OAKLAND, a charter township located in the County (hereinafter sometimes referred to as the
"Township), party of the second part.
WITNESSETH:
WHEREAS, pursuant to Act No. 342, Public Acts of Michigan, 1939, as amended
(hereinafter sometimes referred to as "Act 342"), the Board of Cormnissioners of the County, by
majority vote of its members -elect, authorized and directed that there be established a county
system of water supply improvements and services to serve the Township, said system to be
known as the "Oakland County Oakland Township Water Supply System" (hereinafter
sometimes referred to as the "System"), and has designated the Oakland County Water
Resources Commissioner as the county agency for the System with all powers and duties with
respect thereto as are provided by Act 342 (said Water Resources Commissioner being
hereinafter sometimes referred to as the "County Agency"); and
WHEREAS, under and subject to the terms of Act 342, the County is authorized, through
the County Agency, to acquire and construct the water supply system improvements and
facilities hereinafter described as constituting the System (the 'Project"), the County and the
Township are authorized to enter into a contract, as hereinafter provided, for the acquisition and
construction of the Project by the Cormty and for financing all or part of the cost thereof by the
issuance of bonds by the County secured by the pledge of the full faith and credit of the
Township to pay such cost with interest to the County in installments extending over a period not
exceeding thirty (30) years, and the County is authorized to issue such bonds and, if authorized
by majority vote of the members -elect of its Board of Commissioners, to pledge its full faith and
credit for the payment of such bonds and the interest thereon; and
WHEREAS, there is an urgent need of such water supply system improvements and
facilities to provide water supply services to the Township in order to promote the health and
welfare of the residents thereof, which improvements would likewise benefit the County and its
residents, and the parties hereto have concluded that such improvements can be provided and
financed most economically and efficiently by the County through the exercise of the powers
conferred by Act 342, and especially sections 5a, 5b and 5c thereof; and
WHEREAS, preliminary plans for the Project and estimates of the cost and period of
usefulness thereof have been prepared, all of which have been submitted to and approved by the
Board of Commissioners of the County and the Township Board and placed on file with said
Board of Commissioners in the office of the County Agency, said estimates being set forth in
Exhibit B hereunto attached; and
WHEREAS, it is proposed that the cost of the Project be financed in whole or in part by
the issuance of one or more series of County bonds; and
WHEREAS, in order to provide for the acquisition and construction of the Project by the
County and the financing of all or part of the cost thereof by the issuance of Comity bonds, and
for other related matters, it is necessary for the parties hereto to enter into this contract.
-2-
THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE COVENANTS
OF EACH OTHER, THE PARTIES HERETO AGREE as follows:
1. The parties hereto approve and agree to the acquisition, construction and
financing of the Project as part of the System, as herein provided, wider and pursuant to Act 342.
The Township by way of compliance with Section 29, Article VII, Michigan Constitution of
1963, consents and agrees to the establishment and location of the System within its corporate
boundaries and to the use by the County of its streets, highways, alleys, lands, rights -of -way or
other public places for the purpose and facilities of the System and any improvements,
enlargements or extensions thereof, and the Township further agrees that, in order to evidence
and effectuate the foregoing agreement and consent, it will execute and deliver to the County
such grants of easement, right-of-way, license, permit or consent as may be requested by the
County.
2. The Project shall consist of the water supply improvements and facilities as
described and specified in the preliminary plans and as set forth in Exhibit A, which is hereunto
attached and is made a part hereof, and which preliminary plans are on file with the County
Agency and are approved and adopted. The Project shall be acquired and constructed
substantially in accordance with said preliminary plans and in accordance with final plans and
specifications to be prepared and submitted by the consulting engineers, but variations therefrom
that do not materially change the location, capacity or overall design of the Project, and that do
not require an increase in the total estimated cost of the Project, may be permitted on the
authority of the County Agency. Other variations or changes may be made if approved by the
County Agency and by resolution of the Township Board and if provisions required by
paragraph 5 hereof are made for payment or financing of any resulting increase in the total
estimated cost. The estimate of the cost of the Project and the estimate of the period of
usefulness thereof as set forth in Exhibit B are approved and adopted.
-3-
3. The County Agency shall take or cause to be taken all actions required or
necessary, in accordance with Act 342, to procure the issuance and sale of bonds by the County,
in one or more series, in whatever aggregate principal amount is necessary to finance the cost of
the Project not paid from other sources. Such bonds shall be issued in anticipation of, and be
payable primarily from, the payments to be made by the Township to the County as provided in
this contract, and shall be secured secondarily, if so voted by the Board of Commissioners of the
County, by a pledge of the full faith and credit of the County, and the said bonds shall be payable
in annual maturities the last of which shall be not more than forty years from the date thereof.
4. The County Agency shall proceed to take construction bids for the Project and,
subject to the sale and delivery of bonds, enter into construction contracts with the lowest
responsible bidder or bidders, procure from the contractors all necessary and proper bonds, cause
the Project to be constricted within a reasonable time, and do all other things required by this
contract and the laws of the State of Michigan. The County Agency may, in its sole discretion,
retain the services of a third -party engineering firm to perform contract administration of the
Project, and payment for such services shall be the responsibility of the Township as part of the
cost of the Project as described in paragraph 6 hereof. All certificates for required payments to
contractors shall be approved by the consulting engineers before presentation to the County
Agency and the latter shall be entitled to rely on such approval in malting payments.
5. to the event that it shall become necessary to increase the estimated cost of the
Project for any reason, or if the actual cost of the Project shall exceed the estimated cost, whether
as the result of variations or changes made in the approved plans or otherwise, then the County
Agency shall not be obligated to pay such increased or excess cost unless the Township Board
shall have adopted a resolution approving such increase or excess and agreeing that the same (or
such part thereof as is not available from other sources) shall be defrayed by the issuance of
increased or additional bonds in anticipation of increased or additional payments agreed to be
N
made by the Township to the County in the manner hereinafter provided; provided, however, that
the adoption of such resolution by the Township Board shall not be required prior to or as a
condition precedent to the issuance of additional bonds by the County if the County previously
has issued or contracted to sell bonds to pay all or part of the cost of the Project and the issuance
of the additional bonds is necessary (as determined by the County) to pay such increased,
additional or excess costs as are essential to completion of the Project according to the plans as
last approved prior to the time when the previous bonds were issued or contracted to be sold.
6. The Township shall pay to the County the entire cost of the Project not defrayed
by grants and funds available from other sources. The Township hereby acknowledges that,
except as may be pledged by the County for payment of bonds as described in paragraph 3
hereof or as may be advanced by the County pursuant to paragraph 13 hereof, no County general
funds shall be appropriated or pledged pursuant to this contract or for the Project. The County's
role in the Project is strictly limited to that set forth in Act 342, and the Township shall be solely
responsible for all administration, finance and construction costs (including attorney fees and all
dispute resolution costs), and all costs of operation and maintenance of the Project. Without
limiting the general nature of the preceding sentence, the cost to be paid by the Township shall
include, in addition to the items of the nature set forth in Exhibit B (represented by the principal
amount of the bonds to be issued by the County), all interest payable by the County on said
bonds, all paying agent fees and other expenses and charges (including the County Agency's
administrative expenses) that are payable on account of said bonds (such fees, expenses and
charges being herein called "bond service charges"), all costs and expenses relating to lawsuits as
described in paragraph 19 hereof and all items of cost described in paragraph 7 hereof. Such
payments shall be made to the County in semiannual installments, which shall be due and
payable at least thirty days prior to each interest payment date specified in the County bonds.
Such semiannual installments shall commence on the date that interest (other than capitalized
interest) or principal first becomes payable on the bonds, and the aggregate amount of the
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installments shall be at least sufficient to pay, when due, all principal and interest on the bonds,
all bond service charges payable on account of the bonds and all other costs described in this
paragraph. The County Agency, within thirty days after delivery of the County bonds to the
purchaser, shall furnish the treasurer of the Township with a complete schedule of the principal
of and interest on the bonds, and the County Agency also, at least thirty days before each
payment is due, shall advise the treasurer of the Township of the amount payable to the County
on such date. If the Township fails to make any payment to the County when due, the same shall
be subject to a penalty of 1% thereof for each month or fraction thereof that such amount
remains unpaid after due. Failure of the County Agency to furnish the schedule or give the
notice as above required shall not excuse the Township from the obligation to make payments
when due. The foregoing obligations shall apply to all bonds issued by the County to defray the
cost of the Project. Payments shall be made by the Township when due whether or not the
Project has then been completed or placed in operation.
7. The County Agency is hereby authorized, but not required, to utilize County
personnel for the administration of the Project. The Township agrees that the costs of contract
administration, auditing and financial services shall be part of the cost of the Project for purposes
of paragraph 6 hereof, whether such services are provided by County personnel or third parties.
In the case of County personnel, the costs attributed to the Project shall include the allocable
share of such personnel's salary and fringe benefits to the Project as determined by the County
Agency.
3. The Township may pay in advance of maturity all or any part of an installment
due the County on the bonds by surrendering to the County bonds issued hereunder of a like
principal amount maturing in the same calendar year or by paying to the County in cash the
principal amount of any County bonds that are subject to redemption prior to maturity, plus all
interest thereon to the first date upon which such bonds may be called for redemption, and plus
-6-
all applicable call premiums and bond service charges, and in such event the County Agency
shall call said bonds for redemption at the earliest possible date. The installments or parts
thereof so prepaid shall be deemed to be the installments or parts thereof falling due in the same
calendar year as the maturity dates of the bonds surrendered or called for redemption.
9. The proceeds of sale of the bonds shall be used solely and only to pay the cost of
the Project, and after completion thereof and payment of all costs in connection therewith, any
surplus remaining from the sale of the bonds shall be (i) used to purchase the bonds on die open
market or (ii) retained by the County Agency as a reserve for payment of the bond principal and
interest maturities next falling due, and in such event the contract obligations of the Township in
respect to such bonds or such maturities shall be reduced by the principal amount of bonds so
purchased or of said reserve, said reduction in case of the purchase of bonds to be applied as to
year in accordance with the year of the maturity of the bonds so purchased. Any bonds so
purchased shall be cancelled. In the alternative, such surplus may be used, on request of the
Township and approval by the Board of Commissioners of the County, to extend, enlarge or
improve the System or to acquire and construct additional water supply system improvements
and facilities to serve the Township.
10. The Township, pursuant to the authorization of Section 5a of Act 342, hereby
pledges its full faith and credit for the prompt and timely payment of its obligations expressed in
this contract and, subject to applicable constitutional and statutory tax limitations, each year shall
levy a tax on the taxable property located in the Township in an amount that, taking into
consideration estimated delinquencies in tax collections, will be sufficient to pay its obligations
under this contract becoming due before the time of the following year's tax collections;
provided, however, that if at the time of making its annual tax levy, the Township shall have on
hand in cash other funds, including special assessment funds and water supply system revenues,
that have been set aside and pledged or are otherwise available for the payment of such
-7-
contractual obligations falling due prior to the time of the next tax collection, then the annual tax
levy may be reduced by such amount. The Township Board each year, at least 90 days prior to
the final date provided by law or charter for the making of the annual tax levy, shall submit to the
County Agency a written statement setting forth the amount of its obligations to the County that
become due and payable under this contract prior to the time of the next following year's tax
collections, the amount of the funds that the Township has or will have on hand or to its credit in
the hands of the County that have been set aside and pledged for payment of said obligations to
the County and the amount of the taxes next proposed to be levied for the purpose of raising
money to meet such obligations. The County Agency promptly shall review such statement and,
if he finds that the proposed tax levy is insufficient, he shall so notify the Township Board. The
County Agency agrees to use Township funds on hand with the County Agency, to the extent
available, to make the Township's payments due on this contract as directed by the Township.
The Township hereby covenants and agrees that it will thereupon increase its levy to such extent
as may be required by the County Agency.
11. In the event that the Township shall fail for any reason to pay to the County
Agency at the tines herein specified, the amounts herein required to be paid, the state treasurer
or other official charged with the disbursement of unrestricted state funds rehu-nable to the
Township pursuant to the Michigan constitution is authorized hereby to withhold sufficient funds
to make up any default or deficiency in funds. In the event the County is required to advance
any money by reason of its pledge of full faith and credit on the bonds to be issued to finance the
acquisition and construction of the Project on account of the delinquency of the Township, the
County Treasurer shall notify the state treasurer to deduct the amount of money so advanced by
the County from any unrestricted moneys in the state treasurer's possession belonging to the
Township and to pay such amount to the County. In addition to the foregoing, the County shall
have all other rights and remedies provided by law to enforce the obligations of the Township to
make payments in the manner and at the times required by this contract. It is specifically
El
recognized by the Township that the payments required to be made by it pursuant to the terms of
this contract are to be pledged for the payment of the principal of and interest on bonds to be
issued by the County, and the Township covenants and agrees that it will snake its required
payments to the County promptly and at the times herein specified, without regard as to whether
the Project herein contemplated is actually completed or placed in operation; provided, however,
that nothing herein contained shall limit the obligation of the County to perform in accordance
with the covenants contained herein.
12. No change in the jurisdiction over any territory in the Township shall impair in
any manner the obligations of this contract or affect the obligations of the Township hereunder.
In the event that all or any part of the territory of the Township becomes a part of the territory of
another municipality, the municipality into which such territory is incorporated shall assume the
proper proportionate share of the contractual obligations (including the pledge of full faith and
credit) of the Township, which proper proportionate share shall be fixed and determined by the
County Agency and shall be binding upon all parties concerned unless, within sixty (60) days
after such incorporation becomes effective, the municipality into which such territory is
incorporated and the Township shall by mutual agreement and with the written approval of the
County Agency fix and determine such proper proportionate share. The County Agency, prior to
malting such determination, shall receive a written recommendation as to the proper
proportionate share from a committee composed of one representative designated by the
Township Board, one designated by the governing body of the new municipality or the
municipality incorporating such territory and one independent registered engineer appointed by
the County Agency. Each governmental unit shall appoint its representative within fifteen (15)
days after being notified to do so by the County Agency and within a like time the County
Agency shall appoint the engineer third member. If any such representative (other than the
appointee of the County Agency) is not appointed within the time above provided, then the
County Agency may proceed without said recommendation. If the committee shall not make the
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recommmendation within forty-five (45) days after its appointment or within any extension thereof
by the County Agency, then the County Agency may proceed without such recommendation.
13. The County may advance funds, if approved by resolution adopted by a 2/3 vote
of the members -elect of its Board of Commissioners (as required by Section 8 of Act 342) for
administrative expenses, including engineering, legal and consulting expenses, incurred by the
County Agency in the performance of its duties and powers authorized by Act 342 and for
proposes of obtaining maps, plans, designs, specifications, cost estimates, rights -of -way and
pennits for the Project. In such event, and to avoid paying interest on the advance, the Township
shall, not later than two years after the date of adoption of the resolution of the County Board of
Commissioners approving such advance, reimburse the County for the amount of any such
advance; provided, however, that (i) the County Board of Commissioners may extend the due
date of such reimbursement by resolution adopted by a 2/3 vote of its members -elect and (ii) the
obligations of the Township shall be reduced to the extent that County bonds are issued and the
proceeds thereof are used to reimburse the County for such advances. The obligations of the
Township to pay the amounts set forth in this paragraph are full faith and credit obligations as
described in paragraph 10 hereof. The County shall have all rights and remedies provided by
this contract and Act 342 and otherwise pursuant to law to enforce the obligations of the
Township described in this paragraph. In the event that the Township fails to reimburse the
County for an advance made pursuant to this paragraph when due, the Township shall pay to the
County interest on such unreinrburscd amount from the date of such advance to the date of
repayment at the interest rate prevailing on six-month United States Treasury Bills on the date of
adoption of the resolution of the County Board of Commissioners approving the advance, to be
compounded quarterly.
14. If County bonds are not sold to finance the acquisition and constriction of any
portion of the Project within three years from the date of this contract through no fault of the
-10-
County or if the Project is abandoned for any reason, the Township shall pay, or reimburse the
County for the payment of, all engineering, legal and other costs and expenses incurred by the
County Agency in connection with the Project and the Township shall be entitled to all plans,
specifications and other engineering data and materials. The provisions of this paragraph may be
waived or extended, either before or after the expiration of the three year period, by resolution of
the Township Board and the Board of Commissioners of the County.
15. While the bonds issued pursuant to this contract remain outstanding, the County
shall be the owner of the Project. As such time as all bonds are paid and this contract is
terminated, ownership of the Project shall revert to the Township by operation of this provision
and without the need for further action by any party. After completion of the Project the
operation and maintenance of the System shall be in accordance with applicable agreements
between the County and the Township.
16. It is understood and agreed by the parties hereto that the System is to serve the
Township and not the individual property owners and users thereof, unless by special
arrangement between the County Agency and the Township. The responsibility of requiring
connection to and use of the System and/or providing such additional facilities as may be needed
shall be that of the Township, which shall cause to be constructed and maintained, directly or
through the County, any such necessary additional facilities. The County shall not be obligated
to acquire or construct any facilities other than those designated in paragraph 2 hereof.
17. The County shall have no obligation or responsibility for providing facilities
except as herein expressly provided with respect to the acquisition and construction of the
Project or as otherwise provided by contract. The Township shall have the authority and the
responsibility to provide such other facilities and shall have the right to expand the facilities of
the System by constructing or extending water mains or related facilities, connecting the same to
-11-
the System, and otherwise improving the System. It is expressly agreed, nevertheless, that no
such connection shall be made to the System and no improvements, enlargements or extensions
thereof shall be made without first securing a pennit therefor from the County. Any such permit
may be made conditional upon inspection and approval of new construction by the County.
18. To the fullest extent permitted by law, and except as covered by the contractor's
liability insurance, the Township shall indemnify and hold harmless the County and the County
Agency, and agents and employees of each of them, from and against claims, damages, losses
and expenses, including but not limited to attorneys' fees, arising out of or resulting from design
or construction work relating to the Project, including, without limitation, claims for damage to
public or private property and for injuries to or death of any person or persons, excluding,
however, any claims or causes of action resulting from the County's or the County Agency's sole
negligence.
19. The parties hereto agree that the costs and expenses of any lawsuits or Claims (as
hereinafter defined) arising directly or indirectly out of this contract or the construction or
financing of the Project, to the extent that such costs and expenses are chargeable against the
County or the County Agency, shall be deemed to constitute a part of the cost of the Project and
shall be paid by the Township in the same manner as herein provided with respect to other costs
of the Project. In the event of such litigation or claims, the County Agency shall consult with the
Township and shall retain legal counsel agreeable to the County and the Township to represent
the County; provided that if the County and the Township cannot agree as to such representation
within a reasonable time, the County Agency shall exercise its discretion as to the retention of
such counsel. In this contract, "Claims" means any alleged losses, claims, complaints, demands
for relief or damages, liability, penalties, costs, and expenses, including, but not limited to,
reimbursement for reasonable attorney fees, witness fees, court costs, investigation expenses,
litigation expenses, amounts paid in settlement, and/or other amounts or liabilities of any kind
-12-
which are imposed on, incurred by, or assessed against the County, County Agency or Township,
or for which the County, County Agency or Township may become legally and/or contractually
obligated to pay or defend against, whether direct, indirect or consequential, whether based upon
any alleged violation of the federal or the State constitution, any federal or State statute, rule,
regulation, or any alleged violation of federal or State common law, whether any such claims are
brought in law or equity, tort, contract, or otherwise, and/or whether commenced or threatened.
This paragraph shall not apply to a lawsuit instituted by the Township to enforce its rights under
this contract.
20. All powers, duties and functions vested by this contract in the County shall be
exercised and performed by the County Agency, for and on behalf of the County, unless
otherwise provided by law or in this contract.
21. The parties hereto recognize that the holders from time to time of the bonds to be
issued by the County under the provisions of Act 342, and secured by the full faith and credit
pledge of the Township to the payment of the principal of and interest on the bonds as set forth
in this contract, will have contractual rights in this contract, and it is therefore covenanted and
agreed that so long as any of said bonds shall remain outstanding and unpaid, the provisions of
this contract shall not be subject to any alteration or revision that would affect adversely either
the security of the bonds or the prompt payment of principal or interest thereon. The right to
make changes in this contract, by amendment, supplemental contract or otherwise is nevertheless
reserved insofar as the same do not have such adverse effect. The parties hereto further covenant
and agree that they each will comply with their respective duties and obligations under the terms
of this contract promptly, at the times and in the manner herein set forth, and will not suffer to be
done any act that would impair in any way the contract of said bonds, the security therefor or the
prompt payment of principal and interest thereon. It is declared hereby that the terms of this
contract and of any amendatory or supplemental contract and any contract entered into pursuant
-13-
hereto, insofar as they pertain to said bonds or to the payment of the security thereof, shall be
deemed to be for the benefit of the holders of said bonds.
22. In the event that any one or more of the provisions of this contract for any reason
shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions hereof, but this contract shall be construed
as if such invalid, illegal or unenforceable provision had never been contained herein.
23. This contract shall become effective after its execution by each party hereto and
the expiration of 45 days after the date of publication of the notice required by Section 5b of Act
342; provided, however, that if, within the 45-day period, a proper petition is tiled with the
Township Clerk in accordance with the provisions of Section 5b of Act 342, this contract shall
not become effective until approved by the vote of a majority of the electors residing in the
Township qualified to vote and voting thereon at a general or special election. This contract
shall terminate forty (40) years from its date or on such earlier date when the Township is not in
default hereunder and the principal, interest and bond service charges on the bonds issued as
hereinabove described and all other amounts owed by the Township to the County hereunder are
fully paid and discharged. This contract shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns. Nothing herein contained, however,
shall require the County to finance the Project if it is unable to sell the bonds to finance the same.
This contract may be executed in any number of counterparts.
14-
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed
and delivered by the undersigned, being duly authorized by the respective governing body of
such parties.
COUNTY OF OAKLAND
Executed on 2021 By:
County Water Resources Conunissioner
(County Agency)
CHARTER TOWNSHIP OF OAKLAND
Mn
Supervisor
Executed on 2021 And:
Clerk
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23. 'this contract shall become effective after its execution by each party hereto and the
expiration of forty-five (45) days after the date of publication of the notice required by Section 5b
of Act 342; provided, however, that if, within the forty-five (45) day period, a proper petition is
filed with the Township Clerk in accordance with the provisions of Section 5b of Act 342, this
contract shall not become effective until approved by the vote of a majority of the electors residing
in the Township qualified to vote and voting thereon at a general or special election. This contract
shall terminate forty (40) years from its date or on such earlier date when the Township is not in
default hereunder and the principal, interest and bond service charges on the bonds issued as
hereinabove described and all other amounts owed by the Township to the County hereunder are
fully paid and discharged. This contract shall be binding upon, and inure to, the benefit of the
parties hereto and their respective successors and assigns. Nothing herein contained, however,
shall require the County to finance the Project if it is unable to sell the bonds to finance the same.
This contract may be executed in any number of counterparts.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed and
delivered by the undersigned, being duly authorized by the respective governing body of such
parties,
COUNTY OF OAKLAND
Executed on 2021 By:
County Water Resources Commissioner
(County Agency)
CHARTER TOWNSHIP OF OAKLAND
Dominic Abbate, Supervisor
Executed on t.. ' 2021 And:
Robin Buxar, Clerk
13-
Exhibit A
Oakland Township 2021 Water Supply System Improvements
Protect Description
Construction of a Water Supply System storage tank at the existing Ktiorrwood Pines Well
House site located in the Charter Township of Oakland, consisting, without limitation, of the
construction of the following:
• A new ground storage tank with a level control system, backup alarm floats, temperature
transducers, and overflow splash pad .
• A tank cleanout drying bed with underdrains for use during tank maintenance.
• A new booster pump station building with pumps and variable frequency drives.
• New water main piping and valves to connect the new booster station to the new storage
tank and for connection of the new booster station to the existing water distribution
system.
• A new emergency diesel generator to provide power to the booster station and existing
well house at full design capacity when required.
• Improvements to the existing Knorrwood Pines Well House including a new roof,
replacement and upgrades of existing piping and valves and measurement equipment,
removal of the existing booster pump, new phosphate storage and dosing equipment, and
a new chemical feed room with sodium hypochlorite storage and dosing equipment,
heating and ventilating equipment, and FRP door.
• A new chain link fence surrounding the existing well house property with a new entry
gate.
• Site improvements including a new paved access drive, parking area, landscaping,
lighting, and other outdoor features.
• All associated electrical systems, power wiring, instrumentation, control, and SCADA
systems, lighting, lire protection systems, security systems, gas, beating, potable water
supply systems, paving, storm drainage, and other related systems and appurtenances,
which will be integrated into the existing system.
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9 well House
Pipelnstall Year
® }963-19]9
1988 - 1999
ra-•• 2000-2015
Pressure Districts
a~ Southeast Notlh Pressure Dourat
r ~ Southeast South Pressure District
meast72��
r►ct n ��
�
oa'land Farms
VHeil Ho!Ise
xl
e
5n
rJ
F'i'0ak Arbor
,I
�. svVellflo se
= u,:, rime III I ua I1-1 r.l,q. I'd t11 T1 . iIII.I
SE Water Storage Project Location "'` J.,. a,:.,..:..:'._, .:, :' III'—`� . • n.
da: . .:d:J U J.y o th: ID' , m ! L" nulP i
n.. u,:.,e .a.,.,.m .p, e.,:u::e
Knorrwood Pines
4984 Rochester Road, Oakland, MI 48306
N 0 1,500 3,000
I I 1 I
Qi( Feet
1" 1,500'
OHM
SE Water Storage Project Location
Knorrwood Pines
4984 Rochester Road, Oakland, MI 48306
Exhibit B
Oakland Township 2021 Water Supply System Improvements
4851-6236-2360 A [9007-441]
Project Cost Estimate
[Attach]
-17-
Oakland Township Knorrwood Pines Water Storage
Estimate of Project Cost
J.,ly I.;, �-ul
1) CONTRACTED SERVICES - CONSTRUCTION
Construction $ 3,812,100
Subtotal - Contracted Services - Construction $ 3,812,100
2) CONTRACTED SERVICES - PROJECT DEVELOPMENT
Engineering
Consulting Engineer
Construction Administration, Resident Engineer, and RPR $ 618,000
Construction Testing $ 50,000
Subtotal - Contracted Services - Project Development $ 668,000
3) LEGAL & FINANCIAL
Right of Way
$
5,000
Bond Counsel
$
25,000
Financial Consultant
$
16,000
Michigan Department of Treasury
$
1,000
Municipal Advisory Council Fee
$
400
Official Statement Preparation
$
4,500
Bond Rating
$
13,500
Bond Discount @ 1.5% (Underwriter Fee)
$
70,500
Legal Document Publications
$
2,500
Legal Fees
$
18,000
Subtotal - Legal & Financial
$
156,400
4) COUNTY SERVICES
Administration
$
61,000
Engineering
$
177,000
Right of Way
$
9,000
Construction Inspection
$
15,000
Surveying
$
10,000
Subtotal - County Services
$
272,000
5) SUBTOTAL
$
4,908,500
Contingency
$
491,500
6) ESTIMATE OF PROJECT COST
$
5.400.000
Name of Public Percentage Apportioned Amount
Corporation Apportioned
Oakland Township 100.00% $ 5,400,000
I certify the period of usefulness of these facilities to be twenty (20) years and upwards.
By:
Michael C. Walsh, P.E., Civil Engineer III
NOTICE OF REGULAR MEETING
BOARD OF COMMISSIONERS OF THE COUNTY OF OAKLAND
December 9, 2021
Please take notice that the next regular meeting of the Board of Commissioners of the
County of Oakland will be held on Thursday, December 9, 2021, at 6:00 p.m. at the Oakland
County Board of Commissioners Auditorium located at 1200 North Telegraph Road, Pontiac,
Michigan.
The agenda for the meeting will include consideration by the Board of Commissioners of
a resolution authorizing the issuance of Oakland Township Water Supply System Bonds, Series
2021, in an aggregate principal amount not to exceed $6,000,000 that will contain a limited tax
full faith and credit pledge of the County of Oakland.
This notice is given pursuant to Section 308 of Act 34, Public Acts of Michigan, 2001, as
amended.
Chief of Staff— Board of Commissioners
4839-0676-7611 v1 [9007-4411
Form DC-001
UAKLANU C,UUN 1 Y
WATER RESOURCES COMMISSIONER
TO: William Miller, Chairperson
Economic Development and Infrastructure Committee
FROM: Sid Lockhart, P.E.
Deputy & Special Projects Manager
SUBJECT: Oakland Township Water Improvements 2022 Bonds Series
DATE: December 1, 2021
Please consider the attached resolution authorizing a Public Act 342 contract allowing the Office of the Oakland
County Water Resources Commissioner to design and construct a water storage tank and make other related
water infrastructure improvements for the Charter Township of Oakland. The Township and the Water Resources
Commissioner are also requesting the full faith and credit pledge of Oakland County to issue bonds for the project.
The Township previously approved the contract and pledged its full faith and credit at its October 26, 2021
meeting.
The 500,000-gallon water storage tank and other improvements have been mandated by the State of Michigan to
provide adequate flow for fire suppression and added system reliability.
The proposed project is estimated to cost $5.4 million. Consequently, a $6 million full faith and credit pledge is
requested to cover unanticipated economic irregularities in the supply chain and construction markets at bid time.
Requested Action: Water Resources Commissioner Nash and the Oakland Township Board of
Supervisors, respectfully request the adoption of the proposed resolutions at the December 1, 2021
Economic Development & Infrastructure and Finance Committees, then to be submitted for the full Board
of Commissioners meeting on December 9, 2021.
Jim Nash
OAKLAND COUNTY WATER RESOURCES COMMISSIONER
Page 1 of 1
MISCELLANEOUS RESOLUTION #21XXX
BY: Commissioner William Miller, Chairperson, Economic Development and Infrastructure Committee
IN RE: WATER RESOURCES COMMISSIONER — RESOLUTION TO AUTHORIZE OAKLAND
COUNTY OAKLAND TOWNSHIP WATER SUPPLY SYSTEM IMPROVEMENTS BONDS, SERIES 2022
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen'
WHEREAS the Charter Township of Oakland (the "Township") is in urgent need of water supply system
improvements and facilities constituting a part of a system described in the form of the proposed contract
hereinafter mentioned to be known as the "Oakland County Oakland Township Water Supply System"
(hereinafter sometimes referred to as the "System"), in order to promote the health and welfare of the
residents thereof, which water supply improvements, facilities and system also would benefit the County
and its residents, and the parties to said proposed contract have concluded that such improvements and
facilities can be provided and financed most economically and efficiently by the County through the
exercise of the powers conferred by Act 342, Public Acts of Michigan, 1939, as amended ("Act 342"), and
especially Sections 5a, 5b and 5c thereof; and
WHEREAS by the terms of Act 342, the County and the Township are authorized to enter into a contract
for the acquisition, construction and financing of the water supply system improvements and facilities to
serve the Township and for the payment of the cost thereof by the Township, with interest, and the
County is then authorized to issue its bonds in one or more series to provide the funds necessary
therefor, and
WHEREAS there has been submitted to this Board of Commissioners a proposed contract between the
County, by and through the County Water Resources Commissioner, County Agency, party of the first
part, and the Township, party of the second part (the "Contract'), which Contract provides for the
acquisition, construction and financing of the water supply system improvements and facilities constituting
the System (the "Project') and which Contract is hereinafter set forth in full, and
WHEREAS there have also been submitted for approval and adoption by this Board of Commissioners,
preliminary plans, specifications and estimates of the cost and period of usefulness of the water supply
system improvements and facilities, and
WHEREAS this Board of Commissioners desires to establish the System and to proceed with the Project
and the approval and execution of the Contract to acquire, construct and finance the Project as provided
in the Contract, and
WHEREAS the Board of Commissioners also desires to proceed with the acquisition, construction and
financing of the Project and the issuance of the bonds of the County in an aggregate principal amount of
not to exceed $6,000,000 to defray part of the cost of the Project, and
WHEREAS the County has agreed in a Continuing Covenant Agreement dated as of September 27,
2013, between the County and Bank of America, N A. (the "Bank of America Continuing Covenant
Agreement') to provide to Bank of America, N A. certain information pursuant to Article VI, Section 6.05
(f) of the Bank of America Continuing Covenant Agreement which relates to a final official statement or
other offering or disclosure document prepared in connection with an offering of securities by the County
NOW THEREFORE BE IT RESOLVED.
1. APPROVAL OF PROJECT AND DESIGNATION OF COUNTY AGENCY. This Board of
Commissioners by majority vote of its members -elect does hereby approve, under and pursuant
to Act 342, the establishment of the Oakland County Oakland Township Water Supply System,
which shall consist of (i) water supply system improvements and facilities, as specified and to be
located as shown in Exhibit A to the Contract and (ii) the services provided thereby; that the
Project and the System shall serve the Township; that the Oakland County Water Resources
Commissioner is hereby designated and appointed as the "County Agency" for the Project and
the System; that the County Agency shall have all the powers and duties with respect to the
Project and the System as are provided by law and especially by Act 342; and that all obligations
incurred by the County Agency with respect to the Project and the System, unless otherwise
authorized by this Board of Commissioners, shall be payable solely from funds derived from the
Township as hereinafter provided.
2. PLANS AND SPECIFICATIONS —ESTIMATES OF PERIOD OF USEFULNESS AND COST.
The preliminary plans and specifications for the Project as contained in Exhibits A and B to the
Contract and the estimates of $5,400,000 as the cost thereof and of 30 years and upwards as the
period of usefulness thereof, as submitted to this Board of Commissioners, are hereby approved
and adopted.
3. APPROVAL OF CONTRACT, The Oakland County Oakland Township 2021 Water Supply
System Improvements Contract between the County, by and through the County Water
Resources Commissioner, party of the first part, and the Township, party of the second part,
which Contract has been submitted to this Board of Commissioners, is hereby approved and
adopted, and the County Water Resources Commissioner is hereby authorized and directed to
execute and deliver the same for and on behalf of the County, in as many counterparts as may be
deemed advisable. The Contract is attached to this Resolution hereto as "EXHIBIT 1".
4. AUTHORIZATION OF BONDS — PURPOSE. Bonds of the County aggregating the principal sum
of not to exceed Six Million Dollars ($6,000,000) shall be issued and sold pursuant to the
provisions of Act 342, and other applicable statutory provisions, for the purpose of defraying part
of the cost of the Project.
5. BOND DETAILS. The bonds shall be designated "Oakland County Oakland Township Water
Supply System Improvements Bonds, Series 2022," shall be dated as of the date approved by
the County Agency; shall be issued in such aggregate principal amount as determined by the
County Agency; shall be numbered from 1 upwards, shall be fully registered, shall be in the
denomination of $5,000 each or any integral multiple thereof not exceeding the aggregate
principal amount for each maturity at the option of the purchaser thereof, shall bear interest at a
rate or rates not exceeding 5% per annum as shall be determined by the County Agency at the
time of sale; shall be payable as to interest on such dates as shall be determined by the County
Agency, and shall be serial bonds and/or term bonds and mature in such amounts and on such
dates and in such years as shall be determined by the County Agency; provided, however, that
the final maturity of the bonds shall not be later than June 1, 2052. If requested by the original
purchaser of the bonds and determined by the County Agency, the bonds may be issued in the
form of a single bond with an exhibit containing the principal maturity amounts and applicable
interest rates and due dates.
6. PAYMENT OF PRINCIPAL AND INTEREST. The principal of and interest on the bonds shall be
payable in lawful money of the United States. Principal shall be payable upon presentation and
surrender of the bonds to the bond registrar and paying agent as they severally mature. Interest
shall be paid to the registered owner of each bond as shown on the registration books at the
close of business on the 15th day of the calendar month preceding the month in which the
interest payment is due Interest shall be paid when due by check or draft drawn upon and
mailed by the bond registrar and paying agent to the registered owner at the registered address.
7. BOOK -ENTRY SYSTEM. Initially, one fully -registered bond for each maturity, in the aggregate
amount of such maturity, shall be issued in the name of Cede & Co, as nominee of The
Depository Trust Company ("DTC") for the benefit of other parties (the "Participants") in the book -
entry -only transfer system of DTC. In the event the County determines that it is in the best
interest of the County not to continue the book -entry system of transfer or that the interests of the
holders of the bonds might be adversely affected if the book -entry system of transfer is continued,
the County may notify DTC and the bond registrar and paying agent, whereupon DTC will notify
the Participants of the availability through DTC of bond certificates. In such event, the bond
registrar and paying agent shall deliver, transfer and exchange bond certificates as requested by
DTC and any Participant or "beneficial owner" in appropriate amounts in accordance with this
Resolution. DTC may determine to discontinue providing its services with respect to the bonds at
any time by giving notice to the County and the bond registrar and paying agent and discharging
its responsibilities with respect thereto under applicable law or the County may determine that
DTC is incapable of discharging its duties and may so advise DTC. In either such event, the
County shall use reasonable efforts to locate another securities depository. Under such
circumstances (if there is no successor securities depository), the County and the bond registrar
and paying agent shall be obligated to deliver bond certificates in accordance with the procedures
established by this Resolution In the event bond certificates are issued, the provisions of this
Resolution shall apply to, among other things, the transfer and exchange of such certificates and
the method of payment of principal of and interest on such certificates. Whenever DTC requests
the County and the bond registrar and paying agent to do so, the County and the bond registrar
and paying agent shall cooperate with DTG in taking appropriate action after reasonable notice to
-2-
make available one or more separate certificates evidencing the bonds to any Participant having
bonds certified to its DTC account or to arrange for another securities depository to maintain
custody of certificates evidencing the bonds.
Notwithstanding any other provision of this Resolution to the contrary, so long as any bond is
registered in the name of Cede & Co., as nominee of DTC, all payments with respect to the
principal of, interest on and redemption premium, if any, on such bonds and all notices with
respect to the bonds shall be made and given, respectively, to DTC as provided in the Blanket
Issuer Letter of Representations relating to the bonds. The County Treasurer and the County
Agency are each authorized to sign the Blanket Issuer Letter of Representations on behalf of the
County, in such form as such officer deems necessary or appropriate in order to accomplish the
issuance of the bonds in accordance with law and this Resolution.
Notwithstanding any other provision of this section to the contrary, if the County Agency deems it
to be in the best interest of the County, the bonds shall not initially be issued through the book -
entry -only transfer system of DTC.
8. PRIOR REDEMPTION The bonds shall be subject to optional and/or mandatory redemption
prior to maturity upon such terms and conditions, or shall not be subject to optional or mandatory
prior to maturity, as shall be determined by the County Agency
9 BOND REGISTRAR AND PAYING AGENT. The County Treasurer shall designate, and may
enter into an agreement with, a bond registrar and paying agent for the bonds which shall be a
bank or trust company located in the State of Michigan which is qualified to act in such capacity
under the laws of the United States of America or the State of Michigan. The County Treasurer
from time to time as required may designate a similarly qualified successor bond registrar and
paying agent. Notwithstanding any provision of this section to the contrary, if the County Agency
deems it to be in the best interest of the County, the County Treasurer shall serve as bond
registrar and paying agent for the bonds.
10 EXECUTION. AUTHENTICATION AND DELIVERY OF BONDS. The bonds shall be executed in
the name of the County by the manual or facsimile signatures of the Chairperson of the Board of
Commissioners and the County Clerk and authenticated by the manual signature of the bond
registrar and paying agent or an authorized representative of the bond registrar and paying agent,
and the seal of the County (or a facsimile thereof) shall be impressed or imprinted on the bonds
After the bonds have been executed and authenticated for delivery to the original purchaser
thereof, they shall be delivered by the County Treasurer to the purchaser upon receipt of the
purchase price. Additional bonds bearing the manual or facsimile signatures of the Chairperson
of the Board of Commissioners and the County Clerk and upon which the seal of the County (or a
facsimile thereof) is impressed or imprinted may be delivered to the bond registrar and paying
agent for authentication and delivery in connection with the exchange or transfer of bonds. The
bond registrar and paying agent shall indicate on each bond the date of its authentication
11. EXCHANGE AND TRANSFER OF BONDS. Any bond, upon surrender thereof to the bond
registrar and paying agent with a written instrument of transfer satisfactory to the bond registrar
and paying agent duly executed by the registered owner or his duly authorized attorney, at the
option of the registered owner thereof, may be exchanged for bonds of any other authorized
denominations of the same aggregate principal amount and maturity date and bearing the same
rate of interest as the surrendered bond.
Each bond shall be transferable only upon the books of the County, which shall be kept for that
purpose by the bond registrar and paying agent, upon surrender of such bond together with a
written instrument of transfer satisfactory to the bond registrar and paying agent duly executed by
the registered owner or his duly authorized attorney.
Upon the exchange or transfer of any bond, the bond registrar and paying agent on behalf of the
County shall cancel the surrendered bond and shall authenticate and deliver to the transferee a
new bond or bonds of any authorized denomination of the same aggregate principal amount and
maturity date and bearing the same rate of interest as the surrendered bond. If, at the time the
bond registrar and paying agent authenticates and delivers a new bond pursuant to this section,
payment of interest on the bonds is in default, the bond registrar and paying agent shall endorse
upon the new bond the following- "Payment of interest on this bond is in default. The last date to
which interest has been paid is [appropriate date to be inserted]."
The County and the bond registrar and paying agent may deem and treat the person in whose
name any bond shall be registered upon the books of the County as the absolute owner of such
bond, whether such bond shall be overdue or not, for the purpose of receiving payment of the
principal of and interest on such bond and for all other purposes, and all payments made to any
such registered owner, or upon his order, in accordance with the provisions of section 6 of this
Resolution shall be valid and effectual to satisfy and discharge the liability upon such bond to the
extent of the sum or sums so paid, and neither the County nor the bond registrar and paying
agent shall be affected by any notice to the contrary. The County agrees to indemnify and save
the bond registrar and paying agent harmless from and against any and all loss, cost, charge,
expense, judgment or liability incurred by it, acting in good faith and without negligence
hereunder, in so treating such registered owner.
For every exchange or transfer of bonds, the County or the bond registrar and paying agent may
make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to
be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person
requesting such exchange or transfer as a condition precedent to the exercise of the privilege of
making such exchange or transfer.
The bond registrar and paying agent shall not be required to transfer or exchange bonds or
portions of bonds which have been selected for redemption.
12. FORM OF BONDS. The bonds shall be in substantially the following form, with such additions,
deletions and modifications as are approved by the County Agency and consistent with the terms
of this Resolution:
M
[FORM OF BOND]
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
OAKLAND COUNTY OAKLAND TOWNSHIP
WATER SUPPLY SYSTEM IMPROVEMENTS BOND, SERIES 2022
INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP
Registered Owner.
Principal Amount:
The County of Oakland, State of Michigan (the "County") acknowledges itself indebted to and for
value received hereby promises to pay to the Registered Owner identified above, or registered assigns,
the Principal Amount set forth above on the Maturity Date specified above, unless redeemed prior thereto
as hereinafter provided, upon presentation and surrender of this bond at
in the city of , Michigan, the
bond registrar and paying agent, and to pay to the Registered Owner, as shown on the registration books
at the close of business on the 151h day of the calendar month preceding the month in which an interest
payment is due, by check or draft drawn upon and mailed by the bond registrar and paying agent by first
class mail postage prepaid to the Registered Owner at the registered address, interest on such Principal
Amount from the Date of Original Issue or such later date through which interest shall have been paid
until the County's obligation with respect to the payment of such Principal Amount is discharged at the
rate per annum specified above. Interest is payable on the first day of and in each
year, commencing 1, 201_. Principal and interest are payable in lawful money of the
United States of America. Interest shall be computed on the basis of a 360-day year of twelve 30-day
months.
This bond is one of a series of bonds aggregating the principal sum of
Dollars ($ ) issued by the County under and pursuant
to and in full conformity with the Constitution and Statutes of Michigan (especially Act No. 342, Public
Acts of 1939, as amended) and a bond authorizing resolution adopted by the Board of Commissioners of
the County (the "Resolution") for the purpose of defraying part of the cost of acquiring and constructing
water supply facilities to improve, enlarge and extend the Oakland County Oakland Township Water
Supply System to serve the County and the Charter Township of Oakland (the "Township"). The bonds of
this series are issued in anticipation of payments to be made by the Township in the aggregate principal
amount of Dollars ($ ), pursuant to the Oakland County
Oakland Township 2021 Water Supply System Improvements Contract dated as of October 1, 2021
between the County and the Township. The full faith and credit of the Township has been pledged to the
prompt payment of the foregoing amount and the interest thereon as the same become due. Taxes
levied by the Township to make such payments are subject to constitutional, statutory and charter tax
limitations. As additional security the full faith and credit of the County have been pledged for the prompt
payment of the principal of and interest on the bonds of this series. Taxes levied by the County to pay the
principal of and interest on the bonds of this series are subject to constitutional and statutory tax
limitations.
-5-
This bond is transferable, as provided in the Resolution, only upon the books of the County kept
for that purpose by the bond registrar and paying agent, upon the surrender of this bond together with a
written instrument of transfer satisfactory to the bond registrar and paying agent duly executed by the
Registered Owner or his attorney duly authorized in writing. Upon the exchange or transfer of this bond a
new bond or bonds of any authorized denomination, in the same aggregate principal amount and of the
same interest rate and maturity, shall be authenticated and delivered to the transferee in exchange
therefor as provided in the Resolution, and upon payment of the charges, if any, therein provided. Bonds
so authenticated and delivered shall be in the denomination of $5,000 or any integral multiple thereof not
exceeding the aggregate principal amount for each maturity.
The bond registrar and paying agent shall not be required to transfer or exchange bonds or
portions of bonds which have been selected for redemption.
MANDATORY PRIOR REDEMPTION
Bonds maturing in the year _ are subject to mandatory prior redemption at par and accrued
interest as follows:
Redemption Date
Principal Amount of
Bonds to be Redeemed
Bonds or portions of bonds to be redeemed by mandatory redemption shall be selected by lot.
(REPEAT IF MORE THAN ONE TERM BOND)
OPTIONAL PRIOR REDEMPTION
Bonds maturing prior to 1, 20_, are not subject to redemption prior to maturity Bonds
maturing on and after 1, 20_, are subject to redemption prior to maturity at the option of the
County, in such order as shall be determined by the County, on any date on and after 1, 20
Bonds of a denomination greater than $5,000 may be partially redeemed in the amount of $5,000 or any
integral multiple thereof. If less than all of the bonds maturing in any year are to be redeemed, the bonds
or portions of bonds to be redeemed shall be selected by lot. The redemption price shall be the par value
of the bond or portion of the bond called to be redeemed plus interest to the date fixed for redemption and
a premium as follows:
of the par value of each bond called for redemption on or after 1,
20, but prior to 1, 20;
of the par value of each bond called for redemption on or after 1,
20_, but prior to 1, 20_;
No premium if called for redemption on or after 1, 20_
Not less than thirty days' nor more than sixty days' notice of redemption shall be given to the
holders of bonds called to be redeemed by mail to the registered holder at the registered address. Bonds
or portions of bonds called for redemption shall not bear interest after the date fixed for redemption,
provided funds are on hand with the bond registrar and paying agent to redeem the same
-6-
It is hereby certified, recited and declared that all acts, conditions and things required to exist,
happen and be performed precedent to and in the issuance of the bonds of this series, existed, have
happened and have been performed in due time, form and manner as required by law, and that the total
indebtedness of the County, including the series of bonds of which this bond is one, does not exceed any
constitutional or statutory limitation.
IN WITNESS WHEREOF, the County of Oakland, Michigan, by its Board of Commissioners, has
caused this bond to be executed in its name by facsimile signatures of the Chairperson of the Board of
Commissioners and the County Clerk and its corporate seal (or a facsimile thereof) to be impressed or
imprinted hereon This bond shall not be valid unless the Certificate of Authentication has been manually
executed by an authorized representative of the bond registrar and paying agent.
[SEAL]
COUNTY OF OAKLAND
0
And.
Chairperson, Board of Commissioners
County Clerk
-7-
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within mentioned Resolution
Bond Registrar and Paying Agent
0
Authorized Representative
AUTHENTICATION DATE:
M
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
(please print or type name, address and taxpayer identification number of transferee) the within bond and
all rights thereunder and hereby irrevocably constitutes and appoints
attorney to transfer the within bond on the books kept for registration thereof, with full power of
substitution in the premises
Dated:
Signature Guaranteed:
Signature(s) must be guaranteed by an eligible guarantor institution participating in a Securities
Transfer Association recognized signature guarantee program.
[END OF BOND FORM]
BE
13. SECURITY The bonds shall be issued in anticipation of payments to be made by the Township
pursuant to the Contract. The bonds shall be secured primarily by the full faith and credit pledge
made by the Township in the Contract pursuant to the authorization contained in Act 342 As
additional and secondary security the full faith and credit of the County are pledged for the prompt
payment of the principal of and interest on the bonds as the same shall become due. If the
Township shall fail to make a payment to the County which is sufficient to pay the principal of,
premium, if any, and interest on the bonds as the same shall become due, then an amount
sufficient to pay the deficiency shall be advanced from the general fund of the County. Taxes
imposed by the County shall be subject to constitutional and statutory limitations.
14. DEFEASANCE. In the event cash or direct obligations of the United States or obligations the
principal of and interest on which are guaranteed by the United States, or a combination thereof,
the principal of and interest on which, without reinvestment, come due at times and in amounts
sufficient to pay, at maturity or irrevocable call for earlier optional redemption, the principal of,
premium, if any, and interest on the bonds, or any portion thereof, shall have been deposited in
trust, this Resolution shall be defeased with respect to such bonds, and the owners of the bonds
shall have no further rights under this Resolution except to receive payment of the principal of,
premium, if any, and interest on such bonds from the cash or securities deposited in trust and the
interest and gains thereon and to transfer and exchange bonds as provided herein.
15. PRINCIPAL AND INTEREST FUND There shall be established for the bonds a Principal and
Interest Fund which shall be kept in a separate bank account, provided, however, that such
Principal and Interest Fund may be pooled or combined for deposit or investment purposes with
other debt retirement funds created for nonvoted debt of the County (other than any special
assessment debt). From the proceeds of the sale of the bonds there shall be set aside in the
Principal and Interest Fund any premium as determined by order of the County Agency and any
accrued interest received from the purchaser of the bonds at the time of delivery of the same. All
payments received from the Township pursuant to the Contract are pledged for payment of the
principal of and interest on the bonds and expenses incidental thereto and as received shall be
placed in the Principal and Interest Fund.
16. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the bonds shall be set
aside in a construction fund or funds for the Project and used to defray the cost of the Project in
accordance with the provisions of the Contract.
17 APPROVAL OF MICHIGAN DEPARTMENT OF TREASURY —EXCEPTION FROM PRIOR
APPROVAL. The issuance and sale of the bonds shall be subject to the County obtaining
qualified status or prior approval from the Department of Treasury of the State of Michigan
pursuant to Act 34, Public Acts of Michigan, 2001, as amended ("Act 34"), and, if necessary, the
County Treasurer and County Agency are each hereby authorized and directed to make
application to the Department of Treasury for approval to issue and sell the bonds as provided by
the terms of this Resolution and by Act 34. The County Treasurer and County Agency are
authorized to pay any filing fees required in connection with obtaining qualified status or prior
approval from the Department of Treasury. The County Treasurer and County Agency are further
authorized to request such waivers of the requirements of the Department of Treasury or Act 34
as necessary or desirable in connection with the sale of the bonds.
18. SALE, ISSUANCE, DELIVERY, TRANSFER AND EXCHANGE OF BONDS County Agency
shall determine the principal amount of the Bonds to be sold and shall determine the other bond
details as described in Section 2 hereof, the terms and conditions for optional and/or mandatory
redemption, and any premium to be set aside in the Principal and Interest Fund as described in
Section 12 hereof. The Bonds shall be sold at a competitive sale in accordance with the
provisions of Act 34 and other applicable laws of this state. In connection therewith, the County
Agency shall set the time and date for the sale of the Bonds and prescribe the form of notice of
sale for the Bonds and do all things necessary to effectuate the sale, issuance, delivery, transfer
and exchange of the Bonds in accordance with the provisions of this Resolution. The Bonds shall
be sold at a price that is not less than 99% of their par value, as determined by the County
Agency. The County Agency is hereby authorized to approve by written order the interest rates
on the bonds and the winning bidder upon the sale of the bonds. The County Agency, the County
Treasurer, the County Clerk and other County officials and employees are hereby authorized to
10-
do all other things necessary to effectuate the sale, issuance, delivery, transfer and exchange of
the Bonds in accordance with the provisions of this Resolution
19. REPLACEMENT OF BONDS Upon receipt by the County Treasurer of proof of ownership of an
unmatured bond, of satisfactory evidence that the bond has been lost, apparently destroyed or
wrongfully taken and of security or indemnity which complies with applicable law and is
satisfactory to the County Treasurer, the County Treasurer may authorize the bond registrar and
paying agent to deliver a new executed bond to replace the bond lost, apparently destroyed or
wrongfully taken in compliance with applicable law. In the event an outstanding matured bond is
lost, apparently destroyed or wrongfully taken, the County Treasurer may authorize the bond
registrar and paying agent to pay the bond without presentation upon the receipt of the same
documentation required for the delivery of a replacement bond The bond registrar and paying
agent, for each new bond delivered or paid without presentation as provided above, shall require
the payment of expenses, including counsel fees, which may be incurred by the bond registrar
and paying agent and the County in the premises. Any bond delivered pursuant the provisions of
this section 19 in lieu of any bond lost, apparently destroyed or wrongfully taken shall be of the
same form and tenor and be secured in the same manner as the bond in substitution for which
such bond was delivered.
20. TAX COVENANT. The County covenants to comply with all requirements of the Internal
Revenue Code of 1986, as amended, necessary to assure that the interest on the bonds will be
and will remain excludable from gross income for federal income tax purposes. The County
Agency, the County Treasurer, the County Clerk and other appropriate County officials are
authorized to do all things necessary to assure that the interest on the bonds will be and will
remain excludable from gross income for federal income tax purposes.
21. NOTICE OF ISSUANCE OF BONDS. Within thirty (30) days after the issuance of the bonds,
either (1) a copy of the final official statement or other offering or disclosure document prepared
by the County in connection with the issuance of the bonds or (2) notice that such information has
been filed with the Electronic Municipal Market Access system of the Municipal Securities
Rulemaking Board and is publicly available shall be furnished to Bank of America, N.A. at the
following locations:
Bank of America, N.A
Mail Code: IL4-135-07-28
135 South LaSalle Street
Chicago, IL 60603
Attention: Thomas R. Denies
Bank of America, N.A.
Public Sector Banking Group
Mail Code: MI8-900-02-70
2600 W. Big Beaver Road
Troy, MI 48084
Attention. Susan Molnar,
Senior Credit Support Association
In accordance with the Bank of America Continuing Covenant Agreement, the notices provided
for above shall be in writing and shall be transmitted by e-mail to the following addresses.
ryan.denes@bofa.com and susan molnar@bofa.com
22 CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they may be
in conflict herewith are hereby rescinded.
Chairperson, on behalf of the Economic Development and Infrastructure Committee, I move adoption of
the foregoing resolution.
Commissioner William Miller, District #14
Chairperson, Economic Development and
Infrastructure Cottxrittee
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MISCELLANEOUS RESOLUTION #2MX
BY: Commissioner William Miller, Chairperson, Economic Development and Infrastructure Committee
IN RE: WATER RESOURCES COMMISSIONER — RESOLUTION TO AUTHORIZE
OAKLAND COUNTY OAKLAND TOWNSHIP WATER SUPPLY SYSTEM IMPROVEMENTS BONDS,
SERIES 2022
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Charter Township of Oakland (the "Township") is in urgent need of water supply
system improvements and facilities constituting a part of a system described in the form of the proposed
contract hereinafter mentioned to be known as the "Oakland County Oakland Township Water Supply
System" (hereinafter sometimes referred to as the "System"), in order to promote the health and
welfare of the residents thereof, which water supply improvements, facilities and system also would
benefit the County and its residents, and the parties to said proposed contract have concluded that
such improvements and facilities can be provided and financed most economically and efficiently by
the County through the exercise of the powers conferred by Act 342, Public Acts of Michigan, 1939, as
amended ("Act 342"), and especially Sections 5a, 5b and 5c thereof; and
WHEREAS by the terms of Act 342, the County and the Township are authorized to enter into a
contract for the acquisition, construction and financing of the water supply system improvements and
facilities to serve the Township and for the payment of the cost thereof by the Township, with
interest, and the County is then authorized to issue its bonds in one or more series to provide
the funds necessary therefor; and
WHEREAS there has been submitted to this Board of Commissioners a proposed contract between
the County, by and through the County Water Resources Commissioner, County Agency, party of the
first part, and the Township, party of the second part (the "Contract'), which Contract provides
for the acquisition, construction and financing of the water supply system improvements and facilities
constituting the System (the "Project') and which Contract is hereinafter set forth in full; and
WHEREAS there have also been submitted for approval and adoption by this Board of
Commissioners, preliminary plans, specifications and estimates of the cost and period of usefulness of
the water supply system improvements and facilities; and
WHEREAS this Board of Commissioners desires to establish the System and to proceed with the
Project and the approval and execution of the Contract to acquire, construct and finance the Project as
provided in the Contract; and
WHEREAS the Board of Commissioners also desires to proceed with the acquisition, construction
and financing of the Project and the issuance of the bonds of the County in an aggregate principal
amount of not to exceed $6,000,000 to defray part of the cost of the Project; and
WHEREAS the County has agreed in a Continuing Covenant Agreement dated as of September
27, 2013, between the County and Bank of America, N.A. (the "Bank of America Continuing
qip 5 hotBAgluefnAntb)ritmIgovkkutogB@nkeifaAtnAdrmrhleAt @dTWinr6ifdemdbca1 fowlsufti� AfflicAuEMLor
&VxJfoaff6dW1I or disclosure document prepared in connection with an offering of securities by the County.
NOW THEREFORE BE IT RESOLVED.
1. APPROVAL OF PROJECT AND DESIGNATION OF COUNTY AGENCY. This Board of
Commissioners by majority vote of its members -elect does hereby approve, under and pursuant
to Act 342, the establishment of the Oakland County Oakland Township Water Supply System,
which shall consist of (i) water supply system improvements and facilities, as specified and to be
located as shown in Exhibit A to the Contract and (ii) the services provided thereby; that the
Project and the System shall serve the Township; that the Oakland County Water Resources
Commissioner is hereby designated and appointed as the "County Agency" for the Project and
the System; that the County Agency shall have all the powers and duties with respect to the
Project and the System as are provided by law and especially by Act 342; and that all obligations
incurred by the County Agency with respect to the Project and the System, unless otherwise
authorized by this Board of Commissioners, shall be payable solely from funds derived from the
Township as hereinafter provided.
2. PLANS AND SPECIFICATIONS —ESTIMATES OF PERIOD OF USEFULNESS AND COST.
The preliminary plans and specifications for the Project as contained in Exhibits A and B to the
Contract and the estimates of $5,400,000 as the cost thereof and of 30 years and upwards as the
3.
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5.
period of usefulness thereof, as submitted to this Board of Commissioners, are hereby approved
and adopted.
APPROVAL OF CONTRACT. The Oakland County Oakland Township 2021 Water Supply
System Improvements Contract between the County, by and through the County Water
Resources Commissioner, party of the first part, and the Township, party of the second part,
which Contract has been submitted to this Board of Commissioners, is hereby approved and
adopted, and the County Water Resources Commissioner is hereby authorized and directed to
execute and deliver the same for and on behalf of the County, in as many counterparts as may be
deemed advisable. The Contract is attached to this Resolution hereto as "EXHIBIT 1".
AUTHORIZATION OF BONDS — PURPOSE. Bonds of the County aggregating the principal sum
of not to exceed Six Million Dollars ($6,000,000) shall be issued and sold pursuant to the
provisions of Act 342, and other applicable statutory provisions, for the purpose of defraying part
of the cost of the Project.
BOND DETAILS. The bonds shall be designated "Oakland County Oakland Township Water
Supply System Improvements Bonds, Series 2022," shall be dated as of the date approved by
the County Agency; shall be issued in such aggregate principal amount as determined by the
County Agency; shall be numbered from 1 upwards; shall be fully registered; shall be in the
denomination of $5,000 each or any integral multiple thereof not exceeding the aggregate
principal amount for each maturity at the option of the purchaser thereof; shall bear interest at a
rate or rates not exceeding 5% per annum as shall be determined by the County Agency at the
time of sale; shall be payable as to interest on such dates as shall be determined by the County
Agency; and shall be serial bonds and/or term bonds and mature in such amounts and on such
dates and in such years as shall be determined by the County Agency; provided, however, that
the final maturity of the bonds shall not be later than June 1, 2052. If requested by the original
purchaser of the bonds and determined by the County Agency, the bonds may be issued in the
form of a single bond with an exhibit containing the principal maturity amounts and applicable
interest rates and due dates.
PAYMENT OF PRINCIPAL AND INTEREST. The principal of and interest on the bonds shall be
payable in lawful money of the United States. Principal shall be payable upon presentation and
surrender of the bonds to the bond registrar and paying agent as they severally mature. Interest
shall be paid to the registered owner of each bond as shown on the registration books at the
close of business on the 15th day of the calendar month preceding the month in which the
interest payment is due. Interest shall be paid when due by check or draft drawn upon and
mailed by the bond registrar and paying agent to the registered owner at the registered address.
BOOK -ENTRY SYSTEM. Initially, one fully -registered bond for each maturity, in the aggregate
amount of such maturity, shall be issued in the name of Cede & Co., as nominee of The
Depository Trust Company ("DTC") for the benefit of other parties (the 'Participants") in the book -
entry -only transfer system of DTC. In the event the County determines that it is in the best
interest of the County not to continue the book -entry system of transfer or that the interests of the
holders of the bonds might be adversely affected if the book -entry system of transfer is continued,
the County may notify DTC and the bond registrar and paying agent, whereupon DTC will notify
the Participants of the availability through DTC of bond certificates. In such event, the bond
registrar and paying agent shall deliver, transfer and exchange bond certificates as requested by
DTC and any Participant or "beneficial owner" in appropriate amounts in accordance with this
Resolution. DTC may determine to discontinue providing its services with respect to the bonds at
any time by giving notice to the County and the bond registrar and paying agent and discharging
its responsibilities with respect thereto under applicable law or the County may determine that
DTC is incapable of discharging its duties and may so advise DTC. In either such event, the
County shall use reasonable efforts to locate another securities depository. Under such
circumstances (if there is no successor securities depository), the County and the bond registrar
and paying agent shall be obligated to deliver bond certificates in accordance with the procedures
established by this Resolution. In the event bond certificates are issued, the provisions of this
Resolution shall apply to, among other things, the transfer and exchange of such certificates and
the method of payment of principal of and interest on such certificates. Whenever DTC requests
the County and the bond registrar and paying agent to do so, the County and the bond registrar
and paying agent shall cooperate with DTC in taking appropriate action after reasonable notice to
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make available one or more separate certificates evidencing the bonds to any Participant having
bonds certified to its DTC account or to arrange for another securities depository to maintain
custody of certificates evidencing the bonds.
Notwithstanding any other provision of this Resolution to the contrary, so long as any bond is
registered in the name of Cede & Co., as nominee of DTC, all payments with respect to the
principal of, interest on and redemption premium, if any, on such bonds and all notices with
respect to the bonds shall be made and given, respectively, to DTC as provided in the Blanket
Issuer Letter of Representations relating to the bonds. The County Treasurer and the County
Agency are each authorized to sign the Blanket Issuer Letter of Representations on behalf of the
County, in such form as such officer deems necessary or appropriate in order to accomplish the
issuance of the bonds in accordance with law and this Resolution.
Notwithstanding any other provision of this section to the contrary, if the County Agency deems it
to be in the best interest of the County, the bonds shall not initially be issued through the book -
entry -only transfer system of DTC.
& PRIOR REDEMPTION. The bonds shall be subject to optional and/or mandatory redemption
prior to maturity upon such terms and conditions, or shall not be subject to optional or mandatory
prior to maturity, as shall be determined by the County Agency.
9. BOND REGISTRAR AND PAYING AGENT. The County Treasurer shall designate, and may
enter into an agreement with, a bond registrar and paying agent for the bonds which shall be a
bank or trust company located in the State of Michigan which is qualified to act in such capacity
under the laws of the United States of America or the State of Michigan. The County Treasurer
from time to time as required may designate a similarly qualified successor bond registrar and
paying agent. Notwithstanding any provision of this section to the contrary, if the County Agency
deems it to be in the best interest of the County, the County Treasurer shall serve as bond
registrar and paying agent for the bonds.
10. EXECUTION. AUTHENTICATION AND DELIVERY OF BONDS. The bonds shall be executed in
the name of the County by the manual or facsimile signatures of the Chairperson of the Board of
Commissioners and the County Clerk and authenticated by the manual signature of the bond
registrar and paying agent or an authorized representative of the bond registrar and paying agent,
and the seal of the County (or a facsimile thereof) shall be impressed or imprinted on the bonds.
After the bonds have been executed and authenticated for delivery to the original purchaser
thereof, they shall be delivered by the County Treasurer to the purchaser upon receipt of the
purchase price. Additional bonds bearing the manual or facsimile signatures of the Chairperson
of the Board of Commissioners and the County Clerk and upon which the seal of the County (or a
facsimile thereof) is impressed or imprinted may be delivered to the bond registrar and paying
agent for authentication and delivery in connection with the exchange or transfer of bonds. The
bond registrar and paying agent shall indicate on each bond the date of its authentication.
11. EXCHANGE AND TRANSFER OF BONDS. Any bond, upon surrender thereof to the bond
registrar and paying agent with a written instrument of transfer satisfactory to the bond registrar
and paying agent duly executed by the registered owner or his duly authorized attorney, at the
option of the registered owner thereof, may be exchanged for bonds of any other authorized
denominations of the same aggregate principal amount and maturity date and bearing the same
rate of interest as the surrendered bond.
Each bond shall be transferable only upon the books of the County, which shall be kept for that
purpose by the bond registrar and paying agent, upon surrender of such bond together with a
written instrument of transfer satisfactory to the bond registrar and paying agent duly executed by
the registered owner or his duly authorized attorney.
Upon the exchange or transfer of any bond, the bond registrar and paying agent on behalf of the
County shall cancel the surrendered bond and shall authenticate and deliver to the transferee a
new bond or bonds of any authorized denomination of the same aggregate principal amount and
maturity date and bearing the same rate of interest as the surrendered bond. If, at the time the
bond registrar and paying agent authenticates and delivers a new bond pursuant to this section,
payment of interest on the bonds is in default, the bond registrar and paying agent shall endorse
upon the new bond the following: 'Payment of interest on this bond is in default. The last date to
which interest has been paid is [appropriate date to be inserted]."
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The County and the bond registrar and paying agent may deem and treat the person in whose
name any bond shall be registered upon the books of the County as the absolute owner of such
bond, whether such bond shall be overdue or not, for the purpose of receiving payment of the
principal of and interest on such bond and for all other purposes, and all payments made to any
such registered owner, or upon his order, in accordance with the provisions of section 6 of this
Resolution shall be valid and effectual to satisfy and discharge the liability upon such bond to the
extent of the sum or sums so paid, and neither the County nor the bond registrar and paying
agent shall be affected by any notice to the contrary. The County agrees to indemnify and save
the bond registrar and paying agent harmless from and against any and all loss, cost, charge,
expense, judgment or liability incurred by it, acting in good faith and without negligence
hereunder, in so treating such registered owner.
For every exchange or transfer of bonds, the County or the bond registrar and paying agent may
make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to
be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person
requesting such exchange or transfer as a condition precedent to the exercise of the privilege of
making such exchange or transfer.
The bond registrar and paying agent shall not be required to transfer or exchange bonds or
portions of bonds which have been selected for redemption.
12. FORM OF BONDS. The bonds shall be in substantially the following form, with such additions,
deletions and modifications as are approved by the County Agency and consistent with the terms
of this Resolution:
M
[FORM OF BOND]
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
OAKLAND COUNTY OAKLAND TOWNSHIP
WATER SUPPLY SYSTEM IMPROVEMENTS BOND,
SERIES 2022
INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP
Registered Owner:
Principal Amount:
The County of Oakland, State of Michigan (the "County") acknowledges itself indebted to and for
value received hereby promises to pay to the Registered Owner identified above, or registered assigns,
the Principal Amount set forth above on the Maturity Date specified above, unless redeemed prior thereto
as hereinafter provided, upon presentation and surrender of this bond at
in the city of , Michigan, the
bond registrar and paying agent, and to pay to the Registered Owner, as shown on the registration books
at the close of business on the 1511 day of the calendar month preceding the month in which an interest
payment is due, by check or draft drawn upon and mailed by the bond registrar and paying agent by first
class mail postage prepaid to the Registered Owner at the registered address, interest on such Principal
Amount from the Date of Original Issue or such later date through which interest shall have been paid
until the County's obligation with respect to the payment of such Principal Amount is discharged at the
rate per annum specified above. Interest is payable on the first day of and in each
year, commencing 1, 201. Principal and interest are payable in lawful money of the
United States of America. Interest shall be computed on the basis of a 360-day year of twelve 30-day
months.
This bond is one of a series of bonds aggregating the principal sum of
Dollars ($ ) issued by the County under and pursuant
to and in full conformity with the Constitution and Statutes of Michigan (especially Act No. 342, Public
Acts of 1939, as amended) and a bond authorizing resolution adopted by the Board of Commissioners of
the County (the "Resolution") for the purpose of defraying part of the cost of acquiring and constructing
water supply facilities to improve, enlarge and extend the Oakland County Oakland Township Water
Supply System to serve the County and the Charter Township of Oakland (the "Township"). The bonds of
this series are issued in anticipation of payments to be made by the Township in the aggregate principal
amount of Dollars ($ ), pursuant to the Oakland County
Oakland Township 2021 Water Supply System Improvements Contract dated as of October 1, 2021
between the County and the Township. The full faith and credit of the Township has been pledged to the
prompt payment of the foregoing amount and the interest thereon as the same become due. Taxes
levied by the Township to make such payments are subject to constitutional, statutory and charter tax
limitations. As additional security the full faith and credit of the County have been pledged for the prompt
payment of the principal of and interest on the bonds of this series. Taxes levied by the County to pay the
principal of and interest on the bonds of this series are subject to constitutional and statutory tax
limitations.
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This bond is transferable, as provided in the Resolution, only upon the books of the County kept
for that purpose by the bond registrar and paying agent, upon the surrender of this bond together with a
written instrument of transfer satisfactory to the bond registrar and paying agent duly executed by the
Registered Owner or his attorney duly authorized in writing. Upon the exchange or transfer of this bond a
new bond or bonds of any authorized denomination, in the same aggregate principal amount and of the
same interest rate and maturity, shall be authenticated and delivered to the transferee in exchange
therefor as provided in the Resolution, and upon payment of the charges, if any, therein provided. Bonds
so authenticated and delivered shall be in the denomination of $5,000 or any integral multiple thereof not
exceeding the aggregate principal amount for each maturity.
The bond registrar and paying agent shall not be required to transfer or exchange bonds or
portions of bonds which have been selected for redemption.
MANDATORY PRIOR REDEMPTION
Bonds maturing in the year are subject to mandatory prior redemption at par and accrued
interest as follows:
Principal Amount of
Redemption Date Bonds to be Redeemed
Bonds or portions of bonds to be redeemed by mandatory redemption shall be selected by lot.
(REPEAT IF MORE THAN ONE TERM BOND)
OPTIONAL PRIOR REDEMPTION
Bonds maturing prior to 1, 20 , are not subject to redemption prior to maturity. Bonds
maturing on and after 1, 20_, are subject to redemption prior to maturity at the option of the
County, in such order as shall be determined by the County, on any date on and after 1, 20.
Bonds of a denomination greater than $5,000 may be partially redeemed in the amount of $5,000 or any
integral multiple thereof. If less than all of the bonds maturing in any year are to be redeemed, the bonds
or portions of bonds to be redeemed shall be selected by lot. The redemption price shall be the par value
of the bond or portion of the bond called to be redeemed plus interest to the date fixed for redemption and
a premium as follows:
of the par value of each bond called for redemption on or after 1,
20_, but prior to 1, 20;
of the par value of each bond called for redemption on or after 1,
20, but prior to 1, 20_;
No premium if called for redemption on or after 1, 20
Not less than thirty days' nor more than sixty days' notice of redemption shall be given to the
holders of bonds called to be redeemed by mail to the registered holder at the registered address. Bonds
or portions of bonds called for redemption shall not bear interest after the date fixed for redemption,
provided funds are on hand with the bond registrar and paying agent to redeem the same.
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It is hereby certified, recited and declared that all acts, conditions and things required to exist,
happen and be performed precedent to and in the issuance of the bonds of this series, existed, have
happened and have been performed in due time, form and manner as required by law, and that the total
indebtedness of the County, including the series of bonds of which this bond is one, does not exceed any
constitutional or statutory limitation.
IN WITNESS WHEREOF, the County of Oakland, Michigan, by its Board of Commissioners, has
caused this bond to be executed in its name by facsimile signatures of the Chairperson of the Board of
Commissioners and the County Clerk and its corporate seal (or a facsimile thereof) to be impressed or
imprinted hereon. This bond shall not be valid unless the Certificate of Authentication has been manually
executed by an authorized representative of the bond registrar and paying agent.
COUNTY OF OAKLAND
La
[SEAL]
Chairperson, Board of Commissioners
County Clerk
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within mentioned Resolution.
Bond Registrar and Paying Agent
M
Authorized Representative
AUTHENTICATION DATE:
In
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
(please print or type name, address and taxpayer identification number of transferee) the within bond and
all rights thereunder and hereby irrevocably constitutes and appoints
attorney to transfer the within bond on the books kept for registration thereof, with full power of
substitution in the premises.
Dated:
Signature Guaranteed:
Signature(s) must be guaranteed by an eligible guarantor institution participating in a Securities
Transfer Association recognized signature guarantee program.
[END OF BOND FORM]
13. SECURITY. The bonds shall be issued in anticipation of payments to be made by the Township
pursuant to the Contract. The bonds shall be secured primarily by the full faith and credit pledge
made by the Township in the Contract pursuant to the authorization contained in Act 342. As
additional and secondary security the full faith and credit of the County are pledged for the prompt
payment of the principal of and interest on the bonds as the same shall become due. If the
Township shall fail to make a payment to the County which is sufficient to pay the principal of,
premium, if any, and interest on the bonds as the same shall become due, then an amount
sufficient to pay the deficiency shall be advanced from the general fund of the County. Taxes
imposed by the County shall be subject to constitutional and statutory limitations.
14. DEFEASANCE. In the event cash or direct obligations of the United States or obligations the
principal of and interest on which are guaranteed by the United States, or a combination thereof,
the principal of and interest on which, without reinvestment, come due at times and in amounts
sufficient to pay, at maturity or irrevocable call for earlier optional redemption, the principal of,
premium, if any, and interest on the bonds, or any portion thereof, shall have been deposited in
trust, this Resolution shall be defeased with respect to such bonds, and the owners of the bonds
shall have no further rights under this Resolution except to receive payment of the principal of,
premium, if any, and interest on such bonds from the cash or securities deposited in trust and the
interest and gains thereon and to transfer and exchange bonds as provided herein.
15. PRINCIPAL AND INTEREST FUND. There shall be established for the bonds a Principal and
Interest Fund which shall be kept in a separate bank account, provided, however, that such
Principal and Interest Fund may be pooled or combined for deposit or investment purposes with
other debt retirement funds created for nonvoted debt of the County (other than any special
assessment debt). From the proceeds of the sale of the bonds there shall be set aside in the
Principal and Interest Fund any premium as determined by order of the County Agency and any
accrued interest received from the purchaser of the bonds at the time of delivery of the same. All
payments received from the Township pursuant to the Contract are pledged for payment of the
principal of and interest on the bonds and expenses incidental thereto and as received shall be
placed in the Principal and Interest Fund.
16. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the bonds shall be set
aside in a construction fund or funds for the Project and used to defray the cost of the Project in
accordance with the provisions of the Contract.
17. APPROVAL OF MICHIGAN DEPARTMENT OF TREASURY —EXCEPTION FROM PRIOR
APPROVAL. The issuance and sale of the bonds shall be subject to the County obtaining
qualified status or prior approval from the Department of Treasury of the State of Michigan
pursuant to Act 34, Public Acts of Michigan, 2001, as amended ("Act 34"), and, if necessary, the
County Treasurer and County Agency are each hereby authorized and directed to make
application to the Department of Treasury for approval to issue and sell the bonds as provided by
the terms of this Resolution and by Act 34. The County Treasurer and County Agency are
authorized to pay any fling fees required in connection with obtaining qualified status or prior
approval from the Department of Treasury. The County Treasurer and County Agency are further
authorized to request such waivers of the requirements of the Department of Treasury or Act 34
as necessary or desirable in connection with the sale of the bonds.
18. SALE. ISSUANCE, DELIVERY, TRANSFER AND EXCHANGE OF BONDS. County Agency
shall determine the principal amount of the Bonds to be sold and shall determine the other bond
details as described in Section 2 hereof, the terms and conditions for optional and/or mandatory
redemption, and any premium to be set aside in the Principal and Interest Fund as described in
Section 12 hereof. The Bonds shall be sold at a competitive sale in accordance with the
provisions of Act 34 and other applicable laws of this state. In connection therewith, the County
Agency shall set the time and date for the sale of the Bonds and prescribe the form of notice of
sale for the Bonds and do all things necessary to effectuate the sale, issuance, delivery, transfer
and exchange of the Bonds in accordance with the provisions of this Resolution. The Bonds shall
be sold at a price that is not less than 99% of their par value, as determined by the County
Agency. The County Agency is hereby authorized to approve by written order the interest rates
on the bonds and the winning bidder upon the sale of the bonds. The County Agency, the County
Treasurer, the County Clerk and other County officials and employees are hereby authorized to
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do all other things necessary to effectuate the sale, issuance, delivery, transfer and exchange of
the Bonds in accordance with the provisions of this Resolution.
19. REPLACEMENT OF BONDS. Upon receipt by the County Treasurer of proof of ownership of an
unmatured bond, of satisfactory evidence that the bond has been lost, apparently destroyed or
wrongfully taken and of security or indemnity which complies with applicable law and is
satisfactory to the County Treasurer, the County Treasurer may authorize the bond registrar and
paying agent to deliver a new executed bond to replace the bond lost, apparently destroyed or
wrongfully taken in compliance with applicable law. In the event an outstanding matured bond is
lost, apparently destroyed or wrongfully taken, the County Treasurer may authorize the bond
registrar and paying agent to pay the bond without presentation upon the receipt of the same
documentation required for the delivery of a replacement bond. The bond registrar and paying
agent, for each new bond delivered or paid without presentation as provided above, shall require
the payment of expenses, including counsel fees, which may be incurred by the bond registrar
and paying agent and the County in the premises. Any bond delivered pursuant the provisions of
this section 19 in lieu of any bond lost, apparently destroyed or wrongfully taken shall be of the
same form and tenor and be secured in the same manner as the bond in substitution for which
such bond was delivered.
20. TAX COVENANT. The County covenants to comply with all requirements of the Internal
Revenue Code of 1986, as amended, necessary to assure that the interest on the bonds will be
and will remain excludable from gross income for federal income tax purposes. The County
Agency, the County Treasurer, the County Clerk and other appropriate County officials are
authorized to do all things necessary to assure that the interest on the bonds will be and will
remain excludable from gross income for federal income tax purposes.
21. NOTICE OF ISSUANCE OF BONDS. Within thirty (30) days after the issuance of the bonds,
either (1) a copy of the final official statement or other offering or disclosure document prepared
by the County in connection with the issuance of the bonds or (2) notice that such information has
been filed with the Electronic Municipal Market Access system of the Municipal Securities
Rulemaking Board and is publicly available shall be furnished to Bank of America, N.A. at the
following locations:
Bank of America, N.A.
Mail Code: I1-4-135-07-28
135 South LaSalle Street
Chicago, IL 60603
Attention: Thomas R. Denes
Bank of America, N.A.
Public Sector Banking Group
Mail Code: M18-900-02-70
2600 W. Big Beaver Road
Troy, MI48084
Attention: Susan Molnar,
Senior Credit Support Association
In accordance with the Bank of America Continuing Covenant Agreement, the notices provided
for above shall be in writing and shall be transmitted by e-mail to the following
addresses: ryan.denes@bofa.com and susan.molnar@bofa.com.
22, CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they may be
in conflict herewith are hereby rescinded_
Chairperson, on behalf of the Economic Development and Infrastructure Committee, I move adoption of
the foregoing resolution.
Commissioner William Miller, District #14
Chairperson, Economic Development and
Infrastructure Committee
-It-
Exhibit I
[Attach Form of Contract]
OAKLAND COUNTY OAKLAND TOWNSHIP 2021
WATER SUPPLY SYSTEM IMPROVEMENTS CONTRACT
THIS CONTRACT, made and entered into as of the I" day of October, 2021, by and
between the COUNTY OF OAKLAND, a county corporation in the State of Michigan
(hereinafter sometimes referred to as the "County"), by and through its Water Resources
Commissioner, County Agency, party of the first part, and the CHARTER TOWNSHIP OF
OAKLAND, a charter township located in the County (hereinafter sometimes referred to as the
"Township), party of the second part.
WITNESSETH:
WHEREAS, pursuant to Act No. 342, Public Acts of Michigan, 1939, as amended
(hereinafter sometimes referred to as "Act 342"), the Board of Commissioners of the County, by
majority vote of its members -elect, authorized and directed that there be established a county
system of water supply improvements and services to serve the Township, said system to be
known as the "Oakland County Oakland Township Water Supply System" (hereinafter
sometimes referred to as the "System"), and has designated the Oakland County Water
Resources Commissioner as the county agency for the System with all powers and duties with
respect thereto as are provided by Act 342 (said Water Resources Commissioner being
hereinafter sometimes referred to as the "County Agency"); and
WHEREAS, under and subject to the terms of Act 342, the County is authorized, through
the County Agency, to acquire and construct the water supply system improvements and
facilities hereinafter described as constituting the System (the "Project"), the County and the
Township are authorized to enter into a contract, as hereinafter provided, for the acquisition and
construction of the Project by the County and for financing all or part of the cost thereof by the
issuance of bonds by the County secured by the pledge of the full faith and credit of the
Township to pay such cost with interest to the County in installments extending over a period not
exceeding thirty (30) years, and the Corinty is authorized to issue such bonds and, if authorized
by majority vote of the members -elect of its Board of Commissioners, to pledge its full faith and
credit for the payment of such bonds and the interest thereon; and
WHEREAS, there is an urgent need of such water supply system improvements and
facilities to provide water supply services to the Township in order to promote the health and
welfare of the residents thereof, which improvements would likewise benefit the County and its
residents, and the parties hereto have concluded that such improvements can be provided and
financed most economically and efficiently by the County through the exercise of the powers
conferred by Act 342, and especially sections 5a, 5b and 5c thereof; and
WHEREAS, preliminary plans for the Project and estimates of the cost and period of
usefulness thereof have been prepared, all of which have been submitted to and approved by the
Board of Conunissioners of the County and the Township Board and placed on file with said
Board of Commissioners in the office of the County Agency, said estimates being set forth in
Exhibit B hereunto attached; and
WHEREAS, it is proposed that the cost of the Project be financed in whole or in part by
the issuance of one or more series of County bonds; and
WHEREAS, in order to provide for the acquisition and construction of the Project by the
County and the financing of all or part of the cost thereof by the issuance of County bonds, and
for other related matters, it is necessary for the parties hereto to enter into this contract.
-1-
THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE COVENANTS
OF EACH OTHER, THE PARTIES HERETO AGREE as follows:
1. The parties hereto approve and agree to the acquisition, construction and
financing of the Project as part of the System, as herein provided, under and pursuant to Act 342.
The Township by way of compliance with Section 29, Article VII, Michigan Constitution of
1963, consents and agrees to the establishment and location of the System within its corporate
boundaries and to the use by the County of its streets, highways, alleys, lands, rights -of -way or
other public places for the purpose and facilities of the System and any improvements,
enlargements or extensions thereof, and the Township further agrees that, in order to evidence
and effectuate the foregoing agreement and consent, it will execute and deliver to the County
such grants of easement, right-of-way, license, permit or consent as may be requested by the
County.
2. The Project shall consist of the water supply improvements and facilities as
described and specified in the preliminary plans and as set forth in Exhibit A, which is hereunto
attached and is made a part hereof, and which preliminary plans are on file with the County
Agency and are approved and adopted. The Project shall be acquired and constructed
substantially in accordance with said preliminary plans and in accordance with final plans and
specifications to be prepared and submitted by the consulting engineers, but variations therefrom
that do not materially change the location, capacity or overall design of the Project, and that do
not require an increase in the total estimated cost of the Project, may be permitted on the
authority of the County Agency. Other variations or changes may be made if approved by the
County Agency and by resolution of the Township Board and if provisions required by
paragraph 5 hereof are made for payment or financing of any resulting increase in the total
estimated cost. The estimate of the cost of the Project and the estimate of the period of
usefulness thereof as set forth in Exhibit B are approved and adopted.
-3-
3. The County Agency shall take or cause to be taken all actions required or
necessary, in accordance with Act 342, to procure the issuance and sale of bonds by the County,
in one or more series, in whatever aggregate principal amount is necessary to finance the cost of
the Project not paid from other sources. Such bonds shall be issued in anticipation of, and be
payable primarily from, the payments to be made by the Township to the County as provided in
this contract, and shall be secured secondarily, if so voted by the Board of Commissioners of the
County, by a pledge of the full faith and credit of the County, and the said bonds shall be payable
in annual maturities the last of which shall be not more than forty years from the date thereof.
4. The County Agency shall proceed to take construction bids for the Project and,
subject to the sale and delivery of bonds, enter into construction contracts with the lowest
responsible bidder or bidders, procure from the contractors all necessary and proper bonds, cause
the Project to be constructed within a reasonable time, and do all other things required by this
contract and the laws of the State of Michigan. The County Agency may, in its sole discretion,
retain the services of a third -party engineering firm to perform contract administration of the
Project, and payment for such services shall be the responsibility of the Township as part of the
cost of the Project as described in paragraph 6 hereof. All certificates for required payments to
contractors shall be approved by the consulting engineers before presentation to the County
Agency and the latter shall be entitled to rely on such approval in malting payments.
5. In the event that it shall become necessary to increase the estimated cost of the
Project for any reason, or if the actual cost oi' the Project shall exceed the estimated cost, whether
as the result of variations or changes made in the approved plans or otherwise, then the County
Agency shall not be obligated to pay such increased or excess cost unless the Township Board
shall have adopted a resolution approving such increase or excess and agreeing that the same (or
such part thereof as is not available from other sources) shall be defrayed by the issuance of
increased or additional bonds in anticipation of increased or additional payments agreed to be
H
made by the Township to the County in the manner hereinafter provided; provided, however, that
the adoption of such resolution by the Township Board shall not he required prior to or as a
condition precedent to the issuance of additional bonds by the County if the County previously
has issued or contracted to sell bonds to pay all or part of the cost of the Project and the issuance
of the additional bonds is necessary (as determined by the County) to pay such increased,
additional or excess costs as are essential to completion of the Project according to the plans as
last approved prior to the time when the previous bonds were issued or contracted to be sold.
6. The Township shall pay to the County the entire cost of the Project not defrayed
by grants and funds available from other sources. The Township hereby acknowledges that,
except as may be pledged by the County for payment of bonds as described in paragraph 3
hereof or as may be advanced by the County pursuant to paragraph 13 hereof, no County general
finds shall be appropriated or pledged pursuant to this contract or for the Project. The County's
role in the Project is strictly limited to that set forth in Act 342, and the Township shall be solely
responsible for all administration, finance and construction costs (including attorney fees and all
dispute resolution costs), and all costs of operation and maintenance of the Project. Without
limiting the general nature of the preceding sentence, the cost to be paid by the Township shall
include, in addition to the items of the nature set forth in Exhibit B (represented by the principal
amount of the bonds to be issued by the County), all interest payable by the County on said
bonds, all paying agent fees and other expenses and charges (including the County Agency's
administrative expenses) that are payable on account of said bonds (such fees, expenses and
charges being herein called "bond service charges"), all costs and expenses relating to lawsuits as
described in paragraph 19 hereof and all items of cost described in paragraph 7 hereof Such
payments shall be made to the County in semiannual installments, which shall be due and
payable at least thirty days prior to each interest payment date specified in the County bonds.
Such semiannual installments shall commence on the date that interest (other than capitalized
interest) or principal first becomes payable on the bonds, and the aggregate amount of the
-5-
installments shall be at least sufficient to pay, when due, all principal and interest on the bonds,
all bond service charges payable on account of the bonds and all other costs described in this
paragraph. The County Agency, within thirty days after delivery of the County bonds to the
purchaser, shall furnish the treasurer of the Township with a complete schedule of the principal
of and interest on the bonds, and the County Agency also, at least thirty days before each
payment is due, shall advise the treasurer of the Township of the amount payable to the County
on such date. ff the Township fails to make any payment to the County when due, the same shall
be subject to a penalty of 1% thereof for each month or fraction thereof that such amount
remains unpaid after due. Failure of the County Agency to furnish the schedule or give the
notice as above required shall not excuse the Township from the obligation to make payments
when due. The foregoing obligations shall apply to all bonds issued by the County to defray the
cost of the Project. Payments shall be made by the Township when due whether or not the
Project has then been completed or placed in operation.
7. The County Agency is hereby authorized, but not required, to utilize County
personnel for the administration of the Project. The Township agrees that the costs of contract
administration, auditing and financial services shall be part of the cost of the Project for purposes
of paragraph 6 hereof, whether such services are provided by County personnel or third parties.
In the case of County personnel, the costs attributed to the Project shall include the allocable
share of such personnel's salary and fringe benefits to the Project as determined by the County
Agency.
3. The Township may pay in advance of maturity all or any part of an installment
due the County on the bonds by surrendering to the County bonds issued hereunder of a like
principal amount maturing in the same calendar year or by paying to the County in cash the
principal amount of any County bonds that are subject to redemption prior to maturity, plus all
interest thereon to the first date upon which such bonds may be called for redemption, and plus
-6-
all applicable call premiums and bond service charges, and in such event the County Agency
shall call said bonds for redemption at the earliest possible date. The installments or parts
thereof so prepaid shall be deemed to be the installments or parts thereof falling due in the same
calendar year as the maturity dates of the bonds surrendered or called for redemption.
9. The proceeds of sale of the bonds shall be used solely and only to pay the cost of
the Project, and after completion thereof and payment of all costs in connection therewith, any
surplus remaining from the sale of the bonds shall be (i) used to purchase the bonds on the open
market or (ii) retained by the County Agency as a reserve for payment of the bond principal and
interest maturities next falling due, and in such event the contract obligations of the Township in
respect to such bonds or such maturities shall be reduced by the principal amount of bonds so
purchased or of said reserve, said reduction in case of the purchase of bonds to be applied as to
year in accordance with the year of the maturity of the bonds so purchased. Any bonds so
purchased shall be cancelled. In the alternative, such surplus may be used, on request of the
Township and approval by the Board of Commissioners of the County, to extend, enlarge or
improve the System or to acquire and construct additional water supply system improvements
and facilities to serve the Township.
(0. The Township, pursuant to the authorization of Section 5a of Act 342, hereby
pledges its full faith and credit for the prompt and timely payment of its obligations expressed in
this contract and, subject to applicable constitutional and statutory tax limitations, each year shall
levy a tax on the taxable property located in the Township in an amount that, taking into
consideration estimated delinquencies in tax collections, will be sufficient to pay its obligations
under this contract becoming due before the time of the following year's tax collections;
provided, however, that if at the time of making its annual tax levy, the Township shall have on
hand in cash other funds, including special assessment funds and water supply system revenues,
that have been set aside and pledged or are otherwise available for the payment of such
-7-
contractual obligations falling due prior to the time of the next tax collection, then the annual tax
levy may be reduced by such amount. The Township Board each year, at least 90 days prior to
the final date provided by law or charter for the making of the annual tax levy, shall submit to the
County Agency a written statement setting forth the amount of its obligations to the County that
become due and payable under this contract prior to the time of the next following year's tax
collections, the amount of the funds that the Township has or will have on hand or to its credit in
the hands of the County that have been set aside and pledged for payment of said obligations to
the County and the amount of the taxes next proposed to be levied for the purpose of raising
money to meet such obligations: The County Agency promptly shall review such statement and,
if he finds that the proposed tax levy is insufficient, he shall so notify the Township Board. The
County Agency agrees to use Township funds on hand with the County Agency, to the extent
available, to make the Township's payments due on this contract as directed by the Township.
The Township hereby covenants and agrees that it will thereupon increase its levy to such extent
as may be required by the County Agency.
11. In the event that the Township shall fail for any reason to pay to the County
Agency at the times herein specified, the amounts herein required to be paid, the state treasurer
or other official charged with the disbursement of unrestricted state funds returnable to the
Township pursuant to the Michigan constitution is authorized hereby to withhold sufficient funds
to make up any default or deficiency in funds. In the event the County is required to advance
any money by reason of its pledge of full faith and credit on the bonds to be issued to finance the
acquisition and construction of the Project on account of the delinquency of the Township, the
County Treasurer shall notify the state treasurer to deduct the amount of money so advanced by
the County from any unrestricted moneys in the state treasurer's possession belonging to the
Township and to pay such amount to the County. In addition to the foregoing, the County shall
have all other rights and remedies provided by law to enforce the obligations of the Township to
make payments in the manner and at the times required by this contract. It is specifically
-8-
recognized by the Township that the payments required to be made by it pursuant to the terms of
this contract are to be pledged for the payment of the principal of and interest on bonds to be
issued by the County, and the Township covenants and agrees that it will make its required
payments to the County promptly and at the times herein specified, without regard as to whether
the Project herein contemplated is actually completed or placed in operation; provided, however,
that nothing herein contained shall limit the obligation of the County to perform in accordance
with the covenants contained herein.
12. No change in the jurisdiction over any territory in the Township shall impair in
any manner the obligations of this contract or affect the obligations of the Township hereunder.
In the event that all or any part of the territory of the Township becomes a part of the territory of
another municipality, the municipality into which such territory is incorporated shall assume the
proper proportionate share of the contractual obligations (including the pledge of full faith and
credit) of the Township, which proper proportionate share shall be fixed and determined by the
County Agency and shall be binding upon all parties concerned unless, within sixty (60) days
after such incorporation becomes effective, the municipality into which such territory is
incorporated and the Township shall by mutual agreement and with the written approval of the
County Agency fix and determine such proper proportionate share. The County Agency, prior to
making such determination, shall receive a written recommendation as to the proper
proportionate share from a committee composed of one representative designated by the
Township Board, one designated by the governing body of the new municipality or the
municipality incorporating such territory and one independent registered engineer appointed by
the County Agency. Each governmental unit shall appoint its representative within fifteen (15)
days after being notified to do so by the County Agency and within a like time the County
Agency shall appoint the engineer third member. If any such representative (other than the
appointee of the County Agency) is not appointed within the time above provided, then the
County Agency may proceed without said recommendation. If the committee shall not make the
W
recommendation within forty-five (45) days after its appointment or within any extension thereof
by the County Agency, then the County Agency may proceed without such recommendation.
13. The County may advance funds, if approved by resolution adopted by a 2/3 vote
of the members -elect of its Board of Commissioners (as required by Section 8 of Act 342) for
administrative expenses, including engineering, legal and consulting expenses, incurred by the
County Agency in the performance of its duties and powers authorized by Act 342 and for
purposes of obtaining maps, plans, designs, specifications, cost estimates, rights -of -way and
permits for the Project. In such event, and to avoid paying interest on the advance, the Township
shall, not later than two years after the date of adoption of the resolution of the County Board of
Commissioners approving such advance, reimburse the County for the amount of any such
advance; provided, however, that (i) the County Board of Commissioners may extend the due
date of such reimbursement by resolution adopted by a 2/3 vote of its members -elect and (ii) the
obligations of the Township shall be reduced to the extent that County bonds are issued and the
proceeds thereof are used to reimburse the County for such advances. The obligations of the
Township to pay the amounts set forth in this paragraph are full faith and credit obligations as
described in paragraph 10 hereof. The County shall have all rights and remedies provided by
this contract and Act 342 and otherwise pursuant to law to enforce the obligations of the
Township described in this paragraph, fn the event that the Township fails to reimburse the
County for an advance made pursuant to this paragraph when due, the Township shall pay to the
County interest on such unreimbursed amount from the date of such advance to the date of
repayment at the interest rate prevailing on six-month United States Treasury Bills on the date of
adoption of the resolution of the County Board of Commissioners approving the advance, to be
compounded quarterly.
14. 1f County bonds are not sold to finance the acquisition and construction of any
portion of the Project within three years from the date of this contract through no fault of the
-10-
County or if the Project is abandoned for any reason, the Township shall pay, or reimburse the
County for the payment of, all engineering, legal and other costs and expenses incurred by the
County Agency in connection with the Project and the Township shall be entitled to all plans,
specifications and other engineering data and materials. The provisions of this paragraph may be
waived or extended, either before or after the expiration of the three year period, by resolution of
the Township Board and the Board of Commissioners of the County.
15. While the bonds issued pursuant to this contract remain outstanding, the County
shall be the owner of the Project. As such time as all bonds are paid and this contract is
terminated, ownership of the Project shall revert to the Township by operation of this provision
and without the need for further action by any party. After completion of the Project the
operation and maintenance of the System shall be in accordance with applicable agreements
between the County and the Township.
16. It is understood and agreed by the parities hereto that the System is to serve the
Township and not the individual property owners and users thereof, unless by special
arrangement between the County Agency and the Township. The responsibility of requiring
connection to and use of the System and/or providing such additional facilities as may be needed
shall be that of the Township, which shall cause to be constructed and maintained, directly or
through the County, any such necessary additional facilities. The County shall not be obligated
to acquire or construct any facilities other than those designated in paragraph 2 hereof.
17. The County shall have no obligation or responsibility for providing facilities
except as herein expressly provided with respect to the acquisition and construction of the
Project or as otherwise provided by contract. The Township shall have the authority and the
responsibility to provide such other facilities and shall have the right to expand the facilities of
the System by constructing or extending water mains or related facilities, connecting the same to
-11-
the System, and otherwise improving the System. It is expressly agreed, nevertheless, that no
such connection shall be made to the System and no improvements, enlargements or extensions
thereof shall be made without first securing a pemrit therefor from the County. Any such pertnit
may be made conditional upon inspection and approval of new construction by the County.
18. To the fullest extent permitted by law, and except as covered by the contractor's
liability insurance, the Township shall indemnify and hold harmless the County and the County
Agency, and agents and employees of cacti of them, from and against claims, damages, losses
and expenses, including but not limited to attorneys' fees, arising out of or resulting from design
or construction work relating to the Project, including, without limitation, claims for damage to
public or private property and for injuries to or death of any person or persons, excluding,
however, any claims or causes of action resulting from the County's or the County Agency's sole
negligence.
19. The parties hereto agree that the costs and expenses of any lawsuits or Claims (as
hereinafter defined) arising directly or indirectly out of this contract or the construction or
financing of the Project, to the extent that such costs and expenses are chargeable against the
County or the County Agency, shall be deemed to constitute a part of the cost of the Project and
shall be paid by the Township in the same manner as herein provided with respect to other costs
of the Project. In the event of such litigation or claims, the County Agency shall consult with the
'rownship and shall retain legal counsel agreeable to the County and the Township to represent
the County; provided that if the County and the Township cannot agree as to such representation
within a reasonable time, the County Agency shall exercise its discretion as to the retention of
such counsel. In this contract, "Claims" means any alleged losses, claims, complaints, demands
for relief or damages, liability, penalties, costs, and expenses, including, but not limited to,
reimbursement for reasonable attorney fees, witness fees, court costs, investigation expenses,
litigation expenses, amounts paid in settlement, and/or other amounts or liabilities of any kind
-12-
which are imposed on, incurred by, or assessed against the County, County Agency or Township,
or for which the County, County Agency or Township may become legally and/or contractually
obligated to pay or defend against, whether direct, indirect or consequential, whether based upon
any alleged violation of the federal or the State constitution, any federal or State statute, rule,
regulation, or any alleged violation of federal or State common la-%v, whether any such claims are
brought in law or equity, tort, contract, or otherwise, and/or whether connnenced or threatened.
This paragraph shall not apply to a lawsuit instituted by the Township to enforce its rights under
this contract.
20. All powers, duties and functions vested by this contract in the County shall be
exercised and performed by the Cotmty Agency, for and on behalf of the County, unless
otherwise provided by law or in this contract.
21. The parties hereto recognize that the holders from time to time of the bonds to be
issued by the County under the provisions of Act 342, and secured by the full faith and credit
pledge of the Township to the payment of the principal of and interest on the bonds as set forth
in this contract, will have contractual rights in this contract, and it is therefore covenanted and
agreed that so long as any of said bonds shall remain outstanding and unpaid, the provisions of
this contract shall not be subject to any alteration or revision that would affect adversely either
the security of the bonds or the prompt payment of principal or interest thereon. The right to
make changes in this contract, by amendment, supplemental contract or otherwise is nevertheless
reserved insofar as the same do not have such adverse effect. The parties hereto further covenant
and agree that they each will comply with their respective duties and obligations under the terms
of this contract promptly, at the times and in the manner herein set forth, and will not suffer to be
done any act that would impair in any way the contract of said bonds, the security therefor or the
prompt payment of principal and interest thereon. It is declared hereby that the terms of this
contract and of any amendatory or supplemental contract and any contract entered into pursuant
-13-
hereto, insofar as they pertain to said bonds or to the payment of the security thereof, shall be
deemed to be for the benefit of the holders of said bonds.
22. In the event that any one or more of the provisions of this contract for any reason
shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions hereof, but this contract shall be construed
as if such invalid, illegal or unenforceable provision had never been contained herein.
23. This contract shall become effective after its execution by each party hereto and
the expiration of 45 days after the date of publication of the notice required by Section 5b of Act
342; provided, however, that if, within the 45-day period, a proper petition is filed with the
Township Cleric in accordance with the provisions of Section 5b of Act 342, this contract shall
not become effective until approved by the vote of a majority of the electors residing in the
Township qualified to vote and voting thereon at a general or special election. This contract
shall terminate forty (40) years from its date or on such earlier date when the Township is not in
default hereunder and the principal, interest and bond service charges on the bonds issued as
hereinabove described and all other amounts owed by the Township to the County hereunder are
fully paid and discharged. This contract shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns. Nothing herein contained, however,
shall require the County to finance the Project if it is unable to sell the bonds to finance the same.
This contract may be executed in any number of counterparts.
-14-
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed
and delivered by the undersigned, being duly authorized by the respective governing body of
such parties.
COUNTY OF OAKLAND
Executed on 2021 By:
County Water Resources Conunissioner
(County Agency)
CHARTER TOWNSHIP OF OAKLAND
10
Supervisor
Executed on 2021 And:
Clerk
-15-
23. This contract shall become effective after its execution by each party hereto and the
expiration of forty -live (45) days after the date of publication of the notice required by Section 5b
of Act 342; provided, however, that if, within the forty-five (45) day period, a proper petition is
filed with the Township Clerk in accordance with the provisions of Section 5b of Act 342, this
contract shall not become effective until approved by the vote of a majority of the electors residing
in the Township qualified to vote and voting thereon at a general or special election. This contract
shall terminate forty (40) years from its date or on such earlier date when the Township is not in
default hereunder and the principal, interest and bond service charges on the bonds issued as
hereinabove described and all other amounts owed by the Township to the County hereunder are
fully paid and discharged. This contract shall be binding upon, and more to, the benefit of the
parties hereto and their respective successors and assigns. Nothing herein contained, however,
shall require the County to finance the Project if it is unable to sell the bonds to finance the same.
This contract may be executed in any number of counterparts.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed and
delivered by the undersigned, being duly authorized by the respective governing body of such
parties.
COUNTY OF OAKLAND
Executed on 2021 By:
County Water Resources Commissioner
(County Agency)
CHARTER TOWNSHIP OF OAKLAND
Dominic Abbate, Supervisor
Executed on :_ 2021 And:
Robin Buxar, Clerk
-13-
Exhibit A
Oakland Township 2021 Water Supply System Improvements
Project Description
Construction of a Water Supply System storage tank at the existing Knorrwood Pines Well
House site located in the Chatter Township of Oakland, consisting, without limitation, of the
construction of the following:
• A new ground storage tank with a level control system, backup alarm floats, temperature
transducers, and overflow splash pad.
• A tank cleanout drying bed with underdrains for use during tank maintenance.
• A new booster pump station building with pumps and variable frequency drives.
• New water main piping and valves to connect the new booster station to the new storage
tank and for comtection of the new booster station to the existing water distribution
system.
• A new emergency diesel generator to provide power to the booster station and existing
well house at full design capacity when required.
• improvements to the existing Knon-wood Pines Well House including a new roof,
replacement and upgrades of existing piping and valves and measurement equipment,
removal of the existing booster pump, new phosphate storage and dosing equipment, and
a new chemical feed room with sodium hypochlorite storage and dosing equipment,
heating and ventilating equipment, and FRP door.
• A new chain link fence surrounding the existing well house property with a new entry
gate.
• Site improvements including a new paved access drive, parking area, landscaping,
lighting, and other outdoor features.
All associated electrical systems, power wiring, instrumentation, control, and SCADA
systems, lighting, fire protection systems, security systems, gas, heating, potable water
supply systems, paving, storm drainage, and other related systems and appurtenances,
which will be integrated into the existing system.
-16-
^,
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essuw
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i
[7akland Farms -:x'r , A
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w
®
e
har
O wennee� SE Water Storage Project Location �a° 1'" mT e •'cl ^e
I.,., n•,n,. 111..ltd I I a.P,, d.,Vy. 1, 11 11•�..i.n ,i(Ih, •u,VVW
Knorrwood Pines
Pipe Install Bar 4984 Rochester Road, Oakland, MI 48306
6��1.�,^,,. `.,1� �,,��• ^•,°�^•,. ^I,.�s,.: =�.��n•�.°: �.,, 1.,,�
m.,, 1w1-1." e1-1h 11 lvl
1980-1999 IN 0 1,500 3,000
,.,a. 2000-2044 { 1 1 1 1 1 1 1 1 I -
'*10ssure Districts /jT}i
��CSoutheast North Pressure Distuct FeeL
v:~ -
Pi_�9eltl6ea'st SautM1 Pressure DistllCt rc
IP unu..nn,..uon.vrwr.-m.-n.el. ri •. r..n...d.,, :n-rco�i•.n,u,. �
SE Water Storage Project Location
Knorrwood Pines
4984'Rochester Road, Oakland, MI 48306
\ \/�
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Exhibit B
Oakland Township 2021 Water Supply System knprovements
4851-6236-2360 v1[9007-441]
Project Cost Estimate
[Attach]
-17-
Oakland Township Knorrwood Pines Water Storage
Estimate of Project Cost
J.dy 14, Z021
1) CONTRACTED SERVICES - CONSTRUCTION
Construction $ 3,812,100
Subtotal - Contracted Services - Construction $ 3,812,100
2) CONTRACTED SERVICES - PROJECT DEVELOPMENT
Engineering
Consulting Engineer
Construction Administration, Resident Engineer, and RPR
$
618,000
Construction Testing
$
50,000
Subtotal - Contracted Services - Project Development
$
668,000
3) LEGAL & FINANCIAL
Right of Way
$
5,000
Bond Counsel
$
25,000
Financial Consultant
$
16,000
Michigan Department of Treasury
$
1,000
Municipal Advisory Council Fee
$
400
Official Statement Preparation
$
4,500
Bond Rating
$
13,500
Bond Discount @ 1.5% (Underwriter Fee)
$
70,500
Legal Document Publications
$
2,500
Legal Fees
$
18,000
Subtotal - Legal & Financial
$
156,400
4) COUNTY SERVICES
Administration
$
61,000
Engineering
$
177,000
Right of Way
$
9,000
Construction Inspection
$
15,000
Surveying
$
10,000
Subtotal - County Services
$
272,000
5) SUBTOTAL
$
4,908,500
Contingency
$
491,500
6) ESTIMATE OF PROJECT COST $ 5,400,000
Name of Public Percentage Apportioned Amount
Corporation Apportioned
Oakland Township 100.00% $ 5,400,000
I certify the period of usefulness of these facilities to be twenty (20) years and upwards.
By*
Michael C. Walsh, P.E., Civil Engineer III