HomeMy WebLinkAboutMinutes - 2012.11.28 - 36680TOM MIDDLETON
Chairperson
SHELLEY TAUB
Vice Chairperson
DAVID WOODWARD
Minority Vice Chairperson November 28, 2012
Chairperson Middleton called the meeting of the F inance Committee to order at 6:48 p.m. in the Board
of Commissioners' Committee Room A of the Commissioners' Auditorium Wing, County Service Center
in Pontiac, Michigan.
COMMITTEE MEMBERS PRESENT
Tom Middleton, Shelley Taub, David Woodward, Christine Long, David Potts, Jim Runestad,
Kathy Crawford, Bill Dwyer, Helaine Zack
COMMITTEE MEMBERS ABSENT WITH NOTICE
Nancy Quarles
OTHERS PRESENT
EXECUTIVE OFFICE Robert Daddow, Deputy Executive
MANAGEMENT & BUDGET Laurie Van Pelt, Director
BOARD OF COMMISSIONERS Jim Ver Ploeg, Administrative Director
Harvey Wedell, Sr. Analyst
Helen Hanger, Sr. Committee Coordinator
.
PUBLIC COMMENT
None.
REGULAR AGENDA
1. RESOLUTION AUTHORIZING THE INSERTION OF NOTICE OF INTENTION OF THE COUNTY
OF OAKLAND TO ISSUE RETIREES HEALTH CARE REFUNDING BONDS
The resolution, Exhibit A and Appendix I authorize and define preliminary plans and estimates relating to
issuance of bonds for the purpose of refunding a contract obligation which provided funding for the Health
Care Trust Fund established for payment of post -employment health care benefits for public employee
retirees of the County, insertion of the Notice of Intent to inform the electors and taxpayers of the intent to
issue the bonds and t heir right to petition to request election on the issuance of the bonds, form and
content of the Notice and authorization for the County Clerk to publish same in the Oakland Press,
Retention of Axe & Ecklund P.C. as bond counsel and Municipal Financial Consultants I ncorporated as
financial consultants, the referendum period, rescinding of all previous resolutions in conflict and the
effective date.
OAKLAND COUNTY BOARD OF COMMISSIONERS
1200 N. TELEGRAPH ROAD, PONTIAC, MI 48341-0475
Telephone (248) 858 -0100 FAX (248) 858-1572
FINANCE COMMITTEE
Christine Long
David Potts
Jim Runestad
Kathy Crawford
Bill Dwyer
Helaine Zack
Nancy Quarles
FINANCE COMMITTEE Page 2
November 15, 2012
Mr. Daddow and Ms. Van P elt presented for items 1 and 2 and responded to concerns regarding the
relationship between Mr. Axe and Municipal Financial Consultants Incorporated (MFCI). Mr. Daddow
explained that Mr. Axe has been involved with this program since its inception with the Certificates of
Participation, has institutional knowledge on both the county’s budget and co unty practices and has
participated in the presentations to Wall Street. Several years ago there was a change in the industry that
indicated there should be a split between the financial advisor and bond counsel . It became necessary to
register with the Federal Securities Commission (FSC) as a bond advisor. Mr. Axe was not registered as
such so he could not perform that service. He spun off this function and h is daughter acquired that piece of
the business and dealt with the financing piece of acquisition. Pursuant to County Purchasing policies, Mr.
Axe reported that he holds no interest in MFCI. While there may be an appearance of conflict of interest,
there is none . The Administration supports amending the resolution to require bidding for the fina ncial
consultant.
Mr. Daddow indicated that he would like to have a future discussion regarding bidding requirements for the
financial consultants if each time there is a bond sale this will be a requirement. It will take time to make
someone new knowle dgeable each time as to the County’s budget and unique practices . This will impact
timing issues for marketing and interest rates. In January, the County plans to refinance debt for the City
of Pontiac to save $750,000.
Taub moved to reconsider the resolution titled Resolution Authorizing the Insertion of Notice of
Intention of the County of Oakland to Issue Retirees Health Care Refunding Bonds. Supported by
Crawford.
Motion carried unanimously on a roll call vote with Quarles absent .
Taub moved to recommend approval of the attached suggested Resolution . Supported by Dwyer.
Taub moved to amend the resolution, item 5 in the NOW THEREFORE BE IT RESOLVED
paragraph, to strike the original language and insert the following.
5. Retention of Financial Consultants . The financial consultant and advisor to the
county in connection with the sale and delivery of the Refunding Bonds shall be selected based
upon a competitive Request for Proposal process administered by the Purchasing Division.
Supported by Woodward.
Motion to amend carried on a roll call vote with Potts voting no and Quarles absent.
Woodward moved to amend the resolution to add a second sentence to Item 5 as follows.
The Financial Advisor cannot have a familial relationship with th e bond counsel.
Supported by Zack.
Roll Call on the 2nd proposed amendment .
Ayes: Woodward, Zack
Nays: Long, Potts, Runestad, Crawford, Dwyer, Taub, Middleton
Absent: Quarles
Motion failed.
Roll Call on the resolution as amended.
Ayes: Runestad, Crawford, Dwyer, Taub, Long, Middleton
FINANCE COMMITTEE Page 3
November 15, 2012
Nays: Potts, Woodward, Zack
Absent: Quarles
Motion carried.
2. BOND RESOLUTION AUTHORIZING THE COUNTY OF OAKLAND TO ISSUE THE COUNTY OF
OAKLAND RETIREES HEALTH CARE REFUNDING BONDS, SERIES 2013 (GENERAL OBLIGATION
LIMITED TAX)
The resolution would authorize the County of Oakland to Issue the County of Oakland Retirees Health Care
Refunding Bonds, Series 2013 (General Obligation Limited Tax) in an amount not to exceed $485,000,000
dated March 1, 2013 or later as de fined within the resolution and incorporating Exhibits and Appendices as
attached.
Taub moved to reconsider the resolution titled Bond Resolution Authorizing the County of Oakland
to Issue the County of Oakland Retirees Health Care Refunding Bonds, Seri es 2013 (General
Obligation Limited Tax). Supported by Crawford.
Motion carried unanimously on a roll call vote with Quarles absent .
Taub moved to recommend approval of the attached suggested Resolution . Supported by
Crawford.
Taub moved to amend the resolution by replacing Exhibit B with a revised Exhibit B, striking all
references to “Municipal Financial Consultants Incorporated.”
Motion to amend carried on a roll call vote with Potts voting no and Quarles absent.
Main motion as amended carried on a roll call vote with Woodward and Zack voting no and Quarles
absent.
OTHER BUSINESS/ADJOURNMENT
There being no other business to come before the committe e, the meeting was adjourned at 7:31 p.m.
________________________ _______________________________
Helen A. Hanger Jim Ver Ploeg
Senior Committee Coordinator Administrator Director
NOTE: The foregoing minutes are subject to Committee approval. `