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HomeMy WebLinkAboutResolutions - 2022.03.10 - 35337BOARD OF COMMISSIONERS March 10, 2022 MISCELLANEOUS RESOLUTION #22-058 Sponsored By: William Miller III IN RE: Water Resources Commissioner - Resolution Authorize Oakland County City of Pontiac Water Supply System Bonds Chairperson and Members of the Board: WHEREAS the Board of Commissioners has determined that it is necessary to acquire, construct, and install water supply system improvements and facilities to improve the County's City of Pontiac Water Supply System (the "System") to be financed through the issuance of one or more series of bonds in the aggregate principal amount not to exceed $5,000,000 pursuant to the provisions of Act 34, Public Acts of Michigan, 2001, as amended ("Act 34"), as hereinafter described (the "Project"); and WHEREAS the Board of Commissioners has determined to sell the bonds in one or more series (the "Bonds") in a private negotiated sale to the Michigan Finance Authority (the "Authority") as authorized by Act 227, Public Acts of Michigan, 1985, as amended ("Act 227"), in order to enable the Authority to provide assistance with respect to the Project from the proceeds of the State of Michigan Drinking Water Revolving Fund. WHEREAS the statutory limit for County debt is $8,478,454,848 (10% of State Equalized Value). As of January 1, 2022, the total pledged debt is $642,548,290 or approximately 0.75786% of the S.E.V. NOW THEREFORE BE IT RESOLVED that no budget amendment is required. BE IT FURTHER RESOLVED AUTHORIZATION OF BONDS —PURPOSE. The Bonds of the County aggregating the principal sum to be determined by the County Water Resources Commissioner, acting as County Agency for the County (the "County Agency"), but not to exceed Five Million Dollars ($5,000,000) shall be issued and sold in one or more series for the purpose of defraying the cost of the Project, including the cost of issuing the Bonds. The Project shall consist of the replacement of lead water service lines and improvements to related facilities as well as all work necessary and incidental to these improvements, including without limitation the restoration of property, streets, rights -of -way, and easements affected by the improvements. BOND DETAILS. The Bonds shall be designated "City of Pontiac Water Supply System Bonds, Series 2022," or as otherwise designated by the County Agency at the time of sale of the Bonds; shall be dated the date of delivery thereof, shall be numbered from 1 upwards; shall be fully registered; shall be in any denomination not exceeding the aggregate principal amount for each maturity at the option of the bondholder (provided, however, that so long as the Bonds are registered in the name of the Authority, the Bonds may be in the form of a single bond in a denomination equal to the aggregate outstanding principal amount of the Bonds, with an exhibit attached thereto that identifies the annual maturities for the Bonds, and references herein to the "Bonds" shall mean that single bond registered in the name of the Authority); shall bear interest at a rate or rates not to exceed 3.00% as determined by the County Agency from the date of delivery of the various principal installments as hereinafter described, payable on such dates as shall be determined by the County Agency; and shall mature on such dates and in such principal amounts as shall be determined by the County Agency; provided, however, that the final maturity of the Bonds shall not be more than 30 years after the date that the Bonds are delivered to the initial purchaser thereof. The Bonds are expected to be delivered to the Authority as the initial purchaser thereof in installments equal to the amounts advanced from time to time by the Authority to the County pursuant to the Purchase Contract and the Supplemental Agreement (each as hereinafter defined). 1. PAYMENT OF PRINCIPAL AND INTEREST. The principal of, premium, if any, and interest on the Bonds shall be payable in lawful money of the United States. So long as the Bonds are owned by the Authority, the Bonds are payable as to principal, redemption premium, if any, and interest at U.S. Bank Trust Company, National Association, or at such other place as shall be designated in writing to the County by the Authority (the "Authority's Depository"). So long as the Authority is the owner of the Bonds, the County agrees that it will deposit with the Authority's Depository payments of the principal of, premium, if any, and interest on the Bonds in immediately available funds by 12:00 noon at least five business days prior to the date on which any such payment is due, whether by maturity, redemption or otherwise. If the Bonds are not registered in the name of the Authority, the principal of and premium, if any, on the Bonds are payable upon the surrender thereof at the office of the bond registrar and paying agent and the interest is payable by check or draft mailed by the bond registrar and paying agent to the registered owner of the Bonds at the address appearing on the registration books of the County kept by the bond registrar and paying agent as of the 15th day of the month preceding the month in which an interest payment is due. 2. PRIOR REDEMPTION. The Bonds shall be subject to redemption prior to maturity upon the terms and conditions set forth in the form of Bonds contained in section 7 hereof. 3. BOND REGISTRAR AND PAYING AGENT. Until a successor is appointed by the Board of Commissioners, the County Treasurer shall act as bond registrar and paying agent. 4. 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. After the Bonds have been executed and authenticated for delivery to the Authority as the original purchaser thereof, they shall be delivered by the County Treasurer to the purchaser upon receipt of the purchase price or upon compliance with the terms and conditions of the Purchase Contract. Additional Bonds bearing the manual or facsimile signatures of the Chairperson of the Board of Commissioners and the County Clerk 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. 5. FORM OF BONDS. The Bonds shall be in substantially the following form, with such changes thereto as are necessary to conform to any order of the County Agency issued in accordance with this Resolution: (FORM OF DWRF BOND) UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF OAKLAND CITY OF PONTIAC WATER SUPPLY SYSTEM BOND, SERIES 2022 INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE % See Exhibit A .2022 Registered Owner: Michigan Finance Authority 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 or so much thereof as shall have been advanced to the County pursuant to a Purchase Contract between the County and the Michigan Finance Authority (the "Authority") and a Supplemental Agreement by and among the County, the Authority and the State of Michigan acting through the Department of Environment, Great Lakes and Energy on the maturity dates and in the amounts set forth in Exhibit A attached hereto, unless redeemed prior thereto as hereinafter provided, the final payment to be made upon presentation and surrender of this bond at the office of the County Treasurer, County of Oakland, State of Michigan, the bond registrar and paying agent, or at such successor bond registrar and paying agent as may be designated pursuant to the Resolution (as hereinafter defined), 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 mailed by the bond registrar and paying agent by first class mail postage prepaid to the Registered Owner at the registered address, interest at the rate per annum specified above on such Principal Amount, to the extent advanced to the County pursuant to the Purchase Contract and the Supplemental Agreement and not forgiven pursuant to the related Order of Approval issued by the Michigan Department of Environment, Great Lakes and Energy, until the County's obligation with respect to the payment of such Principal Amount is discharged. Interest is payable on the first day of and in each year, commencing on 1, 202. Principal and interest are payable in lawful money of the United States of America. In the event of a default in the payment of principal or interest hereon when due, whether at maturity, by redemption or otherwise, the amount of such default shall bear interest (the "additional interest") at a rate equal to the rate of interest that is two percent above the Authority's cost of providing funds (as determined by the Authority) to make payment on the bonds of the Authority issued to provide funds to purchase this bond but in no event in excess of the maximum rate of interest permitted by law. The additional interest shall continue to accrue until the Authority has been fully reimbursed for all costs incurred by the Authority (as determined by the Authority) as a consequence of the County's default. Such additional interest shall be payable on the interest payment date following demand of the Authority. In the event that (for reasons other than the default in the payment of any municipal obligation purchased by the Authority) the investment of amounts in the reserve account established by the Authority for the bonds of the Authority issued to provide funds to purchase this bond fails to provide sufficient available funds (together with any other funds that may be made available for such purpose) to pay the interest on outstanding bonds of the Authority issued to fund such account, the County shall and hereby agrees to pay on demand only the County's pro rata share (as determined by the Authority) of such deficiency as additional interest on this bond. During the time funds are being drawn down by the County under this bond, the Authority periodically will provide the County a statement showing the amount of principal that has been advanced and the date of each advance, which statement shall constitute prima facie evidence of the reported information; provided that no failure on the part of the Authority to provide such a statement or to reflect a disbursement or the correct amount of a disbursement shall relieve the County of its obligation to repay the outstanding principal amount actually advanced, all accrued interest thereon, and any other amount payable with respect thereto in accordance with the terms of this bond. This bond is issued by the County under and pursuant to and in full conformity with the Constitution and Statutes of Michigan (especially Act No. 34, Public Acts of 2001, as amended) and a bond authorizing resolution adopted by the Board of Commissioners of the County (the "Resolution") and an order of the Water Resources Commissioner of the County, as County Agency, for the purpose of defraying part of the cost of acquiring, constructing, and installing water supply system facilities to improve the County's City of Pontiac Water Supply System (the "System"). The County has authorized the net revenues derived from users of the System to be used to pay the principal of and interest on this bond when due. In addition, the County has irrevocably pledged its full faith and credit for the prompt payment of the principal of and interest on this bond as the same become due. In the event and to the extent that the net revenues derived from users of the System are not sufficient to pay the principal of and interest on this bond, such principal and interest are payable as a first budget obligation of the County from its general funds. The ability of the County to raise such funds is subject to applicable statutory and constitutional limitations on the taxing power of the County. The amount of taxes necessary to pay the principal of and interest on this bond, together with the taxes levied for the same year, shall not exceed the limit authorized by law. 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 any denomination not exceeding the aggregate principal amount for each maturity. The bond registrar and paying agent shall not be required to transfer or exchange this bond or any portion of this bond that has been selected for redemption. This bond is subject to redemption prior to maturity at the option of the County and with the prior written consent of and upon such terms as may be required by the Authority. That portion of the bond 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. Notwithstanding any other provision of this bond, so long as the Authority is the owner of this bond, (a) this bond is payable as to principal, premium, if any, and interest at U.S. Bank Trust Company, National Association, or at such other place as shall be designated in writing to the County by the Authority (the "Authority's Depository"); (b) the County agrees that it will deposit with the Authority's Depository payments of the principal of, premium, if any, and interest on this bond in immediately available funds by 12:00 noon at least five business days prior to the date on which any such payment is due whether by maturity, redemption or otherwise; in the event that the Authority's Depository has not received the County's deposit by 12:00 noon on the scheduled day, the County shall immediately pay to the Authority as invoiced by the Authority an amount to recover the Authority's administrative costs and lost investment earnings attributable to that late payment; and (c) written notice of any redemption of this bond shall be given by the County and received by the Authority's Depository at least 40 days prior to the date on which redemption is to be made. 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 this bond, 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 this bond, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the County of Oakland, State of Michigan, by its Board of Commissioners, has caused this bond to be executed in its name by the manual or facsimile signatures of its Chairperson of the Board of Commissioners and County Clerk. This bond shall not be valid unless the Certificate of Authentication has been manually executed by the bond registrar and paying agent or an authorized representative of the bond registrar and paying agent. CERTIFICATE OF AUTHENTICATION an COUNTY OF OAKLAND : And: Chairperson of the Board of Commissioners County Clerk This bond is one of the bonds described in the within -mentioned Resolution. Treasurer, County of Oakland Bond Registrar and Paying Agent 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. EXHIBIT A The principal amounts and maturity dates applicable to the bond to which this Exhibit A is attached are as follows: MATURITY DATE PRINCIPAL MATURITY Based on the schedule provided above unless revised as provided in this paragraph, repayment of the Principal Amount shall be made according to such schedule until the full Principal Amount disbursed to the County is repaid; provided, however, that the County shall have no obligation to repay any serial principal installment for which the County did not receive a disbursement of Principal Amount by the date such serial principal installment is due. In the event the Order of Approval issued by the Department of Environment, Great Lakes, and Energy (the "Order") approves a principal amount of assistance less than the amount of this Bond, the Authority shall only disburse principal up to the amount stated in the Order. In the event (1) that the payment schedule described above provides for payment of a total principal amount greater than the amount of assistance approved by the Order, (2) that less than the principal amount of assistance approved by the Order is disbursed to the County by the Authority or (3) of prepayment of the Bond, the Authority shall prepare a new payment schedule that shall be effective upon receipt by the County. (END OF BOND FORM) 8. PRINCIPAL AND INTEREST FUND. There shall be established for the Bonds a Principal and Interest Fund which shall be accounted for separately and shall be used only to retire the Bonds. From the proceeds of the sale of the Bonds there shall be set aside in the Principal and Interest Fund any premium and accrued interest received from the purchaser of the Bonds at the time of delivery of the Bonds. All payments made by the County pursuant to section 11 hereof 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 to be used to pay the principal and interest on the Bonds. 9. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the Bonds as received from time to time shall be set aside in a construction fund and used solely to defray the cost of acquisition, construction and installation of the Project. Any unexpended balance of the proceeds of the sale of the Bonds remaining in the construction fund after completion of the Project shall be deposited in the Principal and Interest Fund established in section 8 hereof. 10. SALE. ISSUANCE. DELIVERY. TRANSFER AND EXCHANGE OF BONDS. The Bonds shall be sold at a private, negotiated sale to the Authority, as authorized by Act 227. It is hereby determined that this method of sale is in the best interests of the County and is calculated to provide the County with the lowest cost of borrowing money. The sale shall be made pursuant to the terms and conditions to be set forth in a Purchase Contract (the "Purchase Contract") and a Supplemental Agreement (the "Supplemental Agreement"). The County Agency is authorized to execute and deliver the Supplemental Agreement and the Purchase Contract in such forms as shall be approved by the County Agency, with such approval to be evidenced by the County Agency's signature thereon. Notwithstanding any other provision of this Resolution, the Bonds shall be initially sold to the Authority as one bond, numbered 1, in the full aggregate principal amount of the Bonds. The County Agency is authorized to execute one or more written orders (i) containing the determinations that the County Agency is authorized to make as provided in this Resolution and (ii) making such changes in the provisions of the Bonds or this Resolution to comply with the requirements of the Authority or otherwise to enable the Bonds to be sold to the Authority. In addition, the Chairperson of the Board of Commissioners, the Clerk, the Treasurer, the County Agency and other County employees and officials are authorized to execute and deliver to the Authority the Issuer's Certificate and any such certificates and documents as the Authority or bond counsel shall require and 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. 11. SECURITY. The net revenues derived from the users of the System have previously been pledged for the payment of principal and interest on the County's City of Pontiac Water Supply System Bond, Series 2016A, the City of Pontiac Water Supply System Bond, Series 2015A, City of Pontiac Water Supply System Bond, Series 2015B, the City of Pontiac Water Supply System Improvements Bonds, Series 2014 and the City of Pontiac's Water Supply System Revenue Bonds, Series 2010 (collectively, the "Prior Bonds"), in accordance with the provisions of the City of Pontiac Water Supply System Contract dated as of April 19, 2012 between the County and the City of Pontiac, and are pledged for the payment of the principal of and interest on the Bonds on a parity basis with the Prior Bonds. The Bonds shall also be limited tax general obligations of the County. 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. Each year the County shall be obligated, as a first budget obligation, to advance moneys from its general funds or to levy ad valorem property taxes on all taxable property within its corporate boundaries to pay such principal and interest as the same become due in the event and to the extent that the net revenues derived from the users of the System are not sufficient to make such payment. The ability of the County to raise funds to pay such amounts is subject to applicable constitutional and statutory limitations on the taxing power of the County. Nothing in this section 11 shall preclude the County from issuing revenue bonds pursuant to Act 94, Public Acts of Michigan, 1933, as amended, or additional bonds pursuant to Act 34 to pay the costs of further improvements to the System and pledging the net revenues derived from the users of the System for the payment of such bonds on a parity basis with the Prior Bonds and the Bonds. 12. ESTIMATES OF PERIOD OF USEFULNESS AND COST. The estimated period of usefulness of the Project is hereby determined to be not less than thirty (30) years and upwards, and the plans for and estimated cost of the Project in the amount of not less than $5,000,000 are hereby approved and adopted. 13, EXCHANGE AND TRANSFER OF BONDS. Any Bond, at the option of the registered owner thereof and 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, 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 Bond 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 (insert applicable date)." 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 3 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. 14. TAX COVENANT. The Bonds are not expected to be issued as bonds the interest on which is excludable from gross income for federal income tax purposes ("Tax -Exempt Bonds") under the Internal Revenue Code of 1986, as amended (the "Code"). If any of the Bonds are issued as Tax -Exempt Bonds, the County covenants to comply with all requirements of the Code 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. 15. 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 and interest on a series of the Bonds, shall have been deposited in trust, this Resolution shall be defeased and the owners of such series of Bonds shall have no further rights under this Resolution except to receive payment of the principal of and interest on such series of Bonds from the cash or securities deposited in trust and the interest and gains thereon and to transfer and exchange such series of Bonds as provided herein. 16. 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 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. 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. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions, insofar as they are in conflict herewith, are rescinded. Chairperson, the following Commissioners are sponsoring the foregoing Resolution: William Miller III. 6Zd Date: March 10, 2022 David Woodward, Commissioner i ✓ o _dam Lisa Brown, County Clerk / Register of Deeds Date: March 21, 2022 COMMITTEE TRACKING 2022-03-02 Economic Development & Infrastructure - recommend and forward to Finance 2022-03-02 Finance - recommend to Board 2022-03-10 Full Board VOTE TRACKING Motioned by Commissioner Penny Luebs seconded by Commissioner Charles Cavell to adopt the attached Resolution: Authorize Oakland County City of Pontiac Water Supply System Bonds. Yes: David Woodward, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen Kowall, Christine Long, Philip Weipert, Gwen Markham, Angela Powell, Thomas Kuhn, Chuck Moss, Marcia Gershenson, William Miller IIl, Yolanda Smith Charles, Charles Cavell, Penny Luebs, Janet Jackson, Gary McGillivray, Robert Hoffman, Adam Kochenderfer (20) No: None (0) Abstain: None (0) Absent: (0) The Motion Passed. ATTACHMENTS 1. 2022-03-02 memo to accompany resolution authorizing bonds 2. 2022-03-02 Map of Project Area STATE OF MICHIGAN) COUNTY OF OAKLAND) I, 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 March 10, 2022, 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, March 10, 2022. Lisa Brown, Oakland County Clerk/Register of Deeds Form DC-001 OAKLANDCOUNTY MEMORANDUM WATERTERRESOURCES COMMISSIONER TO: William Miller, Chairperson Economic Development and Infrastructure Committee FROM: Sid Lockhart, P.E., Deputy & Special Projects Manager SUBJECT: RESOLUTION TO AUTHORIZE OAKLAND COUNTY CITY OF PONTIAC WATER SUPPLY SYSTEM BONDS — DRINKING WATER (DWRF) DATE: March 2, 2022 This memorandum is similar to the previous memo considered by the Committee because the accompanying resolution is the companion to the prior resolution regarding the intent to issue bonds. The resolution now before the Committee seeks authorization of the bonds to help finance the cost of replacing lead water service lines and improvements to related facilities as well as all work necessary and incidental to these improvements. As was stated in my previous memo, the City of Pontiac is in urgent need of improvements to the water supply system facilities which is currently owned by Oakland County with Water Resources Commissioner Jim Nash acting as the County's Agent. Additionally, improvements are needed to promote the health and welfare of the residents served by the water supply system facilities which also would benefit the County and its residents. Bonds will be secured by revenues of the System and the County's full faith and credit pledge. It is anticipated that the County will advance all or a portion of the costs of the project prior to the issuance of the bonds and that system fund advances would be repaid from proceeds of the bonds. It further is expected that the $5 million loan principle will be forgiven at the conclusion of the project through the State's Water Infrastructure Fund Transfer Act, also referred to as" Booker" funds. These limited tax general obligation bonds would be issued in one or more series in the aggregate principal amount not to exceed $5 million. That amount is expected to be sufficient to finance a portion of eligible construction project costs and the County can reasonably expect to seek reimbursement for its advances to the project as anticipated by the accompanying resolution. I offer the accompanying resolution and respectfully request its adoption. Presenters: Sid Lockhart, P.E., Deputy and Special Projects Manager Phone: 248-858-1082 Amy Ploof, P.E., Chief Engineer Phone: 248-452-2271 Eric McGlothlin, Esq., Dickinson Wright, PLLC Phone: 248-433-7566 Steven A. Burke, CFA, MFCI, LLC Phone: 313-782-3011 OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 1 of 1 Rev.: 11/05/08 J 2/14/2022 PROJECT: DWSRF Service Line Replacements Summary 1,000 services to be replaced as part of DWSRF Program $ 5,000 funded (on average)per replacement $5.0 M total DWSRF funded Project Map Number of Replacements In project Total DWSRF Year In City Total area Funded 2021* 324 24 348 Not eligible 2022 316 32 348 348 2023 280 68 348 348 2024 266 82 _348 304 2025 253 95 348 Not eligible 2021 replacement program , currently h progress T Legend Description and notes Grant funding through the DWSRF program is limited to $5,000 (on average) for service line replacements (construction costs only) up to $5 million. The service line replacement program has been broken up into three (3) densely populated lead service line areas to correspond with planned water infratructure improvement programs in the areas shown on the above project map. Additional replacements to meet the annual goal of 348 service line replacements will be from strategically selected areas throughout the City. The water infrastructure improvement programs were developed to remove lead service lines in the first year of the program and replace the water main in the following year. \\hrc-engr\hrc\ProlDocs\202310\20211056\03 Studies\Working\20220208_prgects_FY22_to FY26,.1v DWSRF StR summary