HomeMy WebLinkAboutResolutions - 2024.05.22 - 41236
AGENDA ITEM: Authorizing the Issuance of Bonds to Finance Improvements to the City of Pontiac
Sewage Disposal System
DEPARTMENT: Water Resources Commissioner
MEETING: Board of Commissioners
DATE: Friday, June 7, 2024 8:55 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2024-4108 _ 24-35
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Bonds Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
The sewage disposal system in the City of Pontiac is in urgent need of rehabilitation. The
improvements to the system, which currently is owned by Oakland County, are needed to promote
the health and welfare of Pontiac residents.
POLICY ANALYSIS
This is a request to adopt the resolution as presented authorizing issuance of bonds to finance
improvements for the County’s City of Pontiac Sewage Disposal System in the aggregate principal
amount of not to exceed $5 million and pledging the full faith and credit of Oakland County for the
prompt payment of the principal of and interest on the bonds.
The Notice of Intent to issue bonds for the City of Pontiac Sewage Disposal System was approved
by the Board of Commissioners on April 11, 2024 (Resolution #2024-3991 _ 24-21). Bonds will be
secured by revenues of the system and the County’s limited tax full faith and credit pledge. These
bonds would be issued in one or more series in an amount not to exceed $5 million.
Project Description: Improvements are needed to promote the health and welfare of Pontiac
residents served by the sewage disposal system in the city’s southeast quadrant, a high-density
neighborhood. The area is bordered by South Blvd (south), Woodward Ave (west), M-59 (north),
and Martin Luther King Jr. Blvd (east). Improvements shall include without limitation the structural
rehabilitation and reconstruction of sanitary sewer mains, manholes, and related structures,
installation of structural pipelining for approximately 46,000 lineal feet of sanitary sewer mains and
approximately 2,700 vertical feet of manhole pipes, pre-liner chemical grouting, bypass sewer
facilities, 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.
BUDGET AMENDMENT REQUIRED: No
Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at
248.425.5572 or andrewsmb@oakgov.com or the department contact persons listed for additional
information.
CONTACT
Joel Brown
Craig Tiell
Eric McGlothlin
Steven Burke
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 5/22/2024
David Woodward, Board of Commissioners Approved - 5/22/2024
Hilarie Chambers, Executive's Office Approved - 6/3/2024
Lisa Brown, Clerk/Register of Deeds Final Approval - 6/5/2024
AGENDA DEADLINE: 06/07/2024 6:00 PM
ATTACHMENTS
1. 2024-05-15 Map Pontiac Lining CWSRF 5901-01
2. 2024-05-15 EDI Memo Bond Sale for Pontiac Sewer Improvements
COMMITTEE TRACKING
2024-05-15 Economic Development & Infrastructure - Forward to Finance
2024-05-15 Finance - Recommend to Board
2024-05-22 Full Board - Adopted
Motioned by: Commissioner Penny Luebs
Seconded by: Commissioner Robert Hoffman
Yes: David Woodward, Michael Spisz, Penny Luebs, Kristen Nelson, Christine Long, Robert
Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, Yolanda Smith
Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault, Linnie Taylor (16)
No: None (0)
Abstain: None (0)
Absent: Karen Joliat, Michael Gingell (2)
Passed
June 7, 2024
RESOLUTION #2024-4108 _ 24-35
Sponsored By: Yolanda Smith Charles
Water Resources Commissioner - Authorizing the Issuance of Bonds to Finance
Improvements to the City of Pontiac Sewage Disposal System
Chair and Members of the Board:
WHEREAS the Oakland County Board of Commissioners has determined that it is necessary to
acquire, construct, and install sewage disposal system improvements and facilities to improve the
County’s City of Pontiac Sewage Disposal System (the “System”) to serve users of the System and
the residents of the County, which improvements shall include without limitation the structural
rehabilitation and reconstruction of sanitary sewer mains, manholes, and related structures,
installation of structural pipelining for approximately 46,000 lineal feet of sanitary sewer mains and
approximately 2,700 vertical feet of manhole pipes, pre-liner chemical grouting, bypass sewer
facilities, 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 (the “Project”), and to finance the Project 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 statutory limit for County debt is $10,664,998,561 (10% of State Equalized
Value). As of April 30, 2024, the total pledged debt is $520,077,951 or approximately 4.877% of the
S.E.V.; 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 Clean
Water State Revolving Fund.
NOW THEREFORE BE IT RESOLVED
1. 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 $5,000,000 shall be issued and sold in one or more series for the purpose of defraying
a portion of the cost of the Project, including the cost of issuing the Bonds. Costs of the Project not paid with
proceeds of the Bonds are expected to be paid with grant monies or other monies lawfully available therefor.
2. BOND DETAILS. The Bonds shall be designated “Sewage Disposal System Capital Improvement Bonds, Series
2024B,” 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 6.00% 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 p.m. 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 CWSRF BOND]
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
SEWAGE DISPOSAL SYSTEM CAPITAL IMPROVEMENT BONDS, SERIES 2024B
INTEREST RATE
MATURITY DATE
DATE OF ORIGINAL ISSUE
_______% See Exhibit A __________, 2024
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 sewage disposal
system facilities to improve the County’s City of Pontiac Sewage Disposal System (the “System”).
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 addition, 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 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 p.m. 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 p.m. 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.
COUNTY OF OAKLAND
By: ____________________________________
Chairperson of the Board of Commissioners
And: ____________________________________
County Clerk
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within-mentioned Resolution.
By: ___________________________________
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
Name of Issuer: County of Oakland
EGLE Project No: 5901-01
EGLE Approved Amount: $
SCHEDULE I
Based on the schedule provided below, unless revised as provided in this paragraph, repayment of principal of the Bond
shall be made until the full amount advanced to the Issuer is repaid. 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 the Bond delivered to the Authority, the Authority shall only disburse principal up to the amount stated in the
Order. In the event (1) that the payment schedule approved by the Issuer and described below provides for payment of a
total principal amount greater than the amount of assistance approved by the Order or (2) that less than the principal amount
of assistance approved by the Order is disbursed to the Issuer by the Authority, or (3) that any portion of the principal
amount of assistance approved by the Order and disbursed to the Issuer is forgiven pursuant to the Order, the Authority
shall prepare a new payment schedule that shall be effective upon receipt by the Issuer.
Due Date Amount of Principal Installment Due
Interest on the Bond shall accrue on that portion of principal disbursed by the Authority to the Issuer from the date principal
is disbursed, until paid, at the rate of ____% per annum, payable __________ 1, 20__, and semiannually thereafter.
The Issuer agrees that it will deposit with U.S. Bank Trust Company, National Association, or at such other place as shall
be designated in writing to the Issuer by the Authority (the “Authority’s Depository”) payments of the principal of, premium,
if any, and interest on this Bond in immediately available funds by 12:00 p.m. (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 Issuer’s deposit by 12:00 p.m. (noon) on the scheduled day, the Issuer 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.
[END OF BOND FORM]
1. 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.
2. 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.
3. 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.
4. SECURITY. The full faith and credit of the County are pledged hereby to the payment of the principal of and interest
on the bonds authorized by this Resolution. Each year the County shall include in its budget as a first budget
obligation an amount sufficient to pay such principal and interest as the same shall become due. The ability of the
County to raise such funds is subject to applicable constitutional and statutory limitations on the taxing power of the
County. The amount of taxes necessary to pay the principal of and interest on the bonds, together with the taxes
levied for the same year, shall not exceed the limit authorized by law. Notwithstanding the foregoing, it is expected
that the principal of and interest on the bonds will be paid from revenues of the System. The net revenues derived
from the users of the System have previously been authorized for the payment of principal of and interest on the
County's Sewage Disposal System Capital Improvement Bonds, Series 2024A (the “Prior Bonds”), in accordance
with the provisions of the City of Pontiac Sewage Disposal System Contract dated as of April 19, 2012 between the
County and the City of Pontiac, and such revenues are hereby authorized to be used for the payment of the principal
of and interest on the Bonds on a parity basis with the Prior Bonds and any other obligations heretofore or hereafter
issued for which the net revenues of the System have been authorized or pledged for the repayment thereof. To
the extent that the net revenues of the System are insufficient to pay the principal of and interest on the Bonds, the
proceeds of taxes (both current and delinquent) shall be deposited as collected into the principal and interest fund
established in section 8 hereof, and until the principal of and the interest on the bonds are paid in full, such proceeds
shall be used only for payment of such principal and interest. 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 authorizing 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.
1. ESTIMATES OF PERIOD OF USEFULNESS AND COST. The estimated period of usefulness of the Project is
hereby determined to be not less than 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.
1. 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.
1. 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.
2. 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.
3. 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.
4. 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.
5. NOTICE OF ISSUANCE OF BONDS. Within 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.
Global Markets
One Bryant Park, 12th Floor
New York, NY 10036
Attention: Dylan Jennings,
PSB Credit Admin Assoc II
Bank of America, N.A.
Public Sector Banking
Mail Code TX1-301-18-01
301 Commerce St., Suite 1810
Fort Worth, TX 76102
Attention: Glenda Beasley
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: thomas.r.denes@bofa.com,
dylan.jennings@bofa.com, and glenda.beasley@bofa.com.
1. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions, insofar as they are in conflict
herewith, are rescinded.
Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith
Charles.
Date: May 22, 2024
David Woodward, Commissioner
Date: June 03, 2024
Hilarie Chambers, Deputy County Executive II
Date: June 05, 2024
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2024-05-15 Economic Development & Infrastructure - Forward to Finance
2024-05-15 Finance - Recommend to Board
2024-05-22 Full Board - Adopted
Motioned by Commissioner Penny Luebs seconded by Commissioner Robert Hoffman to adopt the
attached Bonds: Authorizing the Issuance of Bonds to Finance Improvements to the City of Pontiac
Sewage Disposal System.
Yes: David Woodward, Michael Spisz, Penny Luebs, Kristen Nelson, Christine Long, Robert
Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, Yolanda Smith
Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault, Linnie Taylor (16)
No: None (0)
Abstain: None (0)
Absent: Karen Joliat, Michael Gingell (2)
Passed
ATTACHMENTS
1. 2024-05-15 Map Pontiac Lining CWSRF 5901-01
2. 2024-05-15 EDI Memo Bond Sale for Pontiac Sewer Improvements
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 June
7, 2024, 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 Friday, June 7, 2024.
Lisa Brown, Oakland County Clerk / Register of Deeds
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The information displayed in this map is compiled from recorded deeds, plats, tax maps, surveys and other public records. Al though this information is intended to accurately reflect public information, it is not a legally recorded map or survey and is not intended to be used as one. Users should consult primary/original information sources where appropriate.
DISCLAIMER:
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Date: 4/22/2024 Path: J:\Drain\MappingUnit\SANITARY-COMBINED\Special Projects\POC\Lining Locations\Project Locations\Pontiac Lining CWSRF.mxd
PONTIAC LININGCWSRF 5901-01HRC Project location
Form DC–001
OAKLAND COUNTY WATER RESOURCES COMMISSIONER
Page 1 of 1 Rev.: 02/12/2018
OAKLAND COUNTY
WATER RESOURCES COMMISSIONER MEMORANDUM
TO: Commissioner Yolanda Charles Smith, Chairperson Environment, Economic
Development and Infrastructure Committee
FROM: Joel Brown, P.E., Chief Engineer
SUBJECT: Resolution to Issue Sewage Disposal System Capital Improvement Bonds for
Improvements to the City of Pontiac Sewage Disposal System
DATE: May 15, 2024
The City of Pontiac is in urgent need of improvements to the sewage disposal system. The system is
owned by Oakland County with Water Resources Commissioner Jim Nash as acting the County’s
Agent. Improvements are needed to promote the health and welfare of the Pontiac residents served
by the sewage disposal system which will also benefit Oakland County.
Such improvements can be financed most economically and efficiently by Oakland County through
the exercise of the powers conferred by Act 34, of the Public Acts of Michigan, 2001, as amended to
issue bonds to finance the cost of the acquisition and construction of this project.
The necessary improvements include structural rehabilitation and reconstruction of sanitary sewer
mains, manholes, and related structures, installation of structural pipelining for approximately 46,000
lineal feet of sanitary sewer mains and approximately 2,700 vertical feet of manhole pipes, pre-liner
chemical grouting, and bypass sewer facilities.
Bonds will be secured by revenues of the system and the County’s full faith and credit pledge. These
limited tax general obligation bonds will be issued in one or more series in an amount not to exceed
$5 million. That amount is expected to be sufficient to finance the cost of the construction project.
Oakland County can reasonably expect to seek reimbursement for its advances to the project as
anticipated by the accompanying resolution.
Requested Action: Adopt the resolution as presented to sell bonds in one or more series in a
private negotiated sale to the Michigan Finance Authority as authorized by Act 227 of the
Public Acts of Michigan, 1985, for improvements to the Pontiac Sewage Disposal System.
Presenters: Joel Brown brownjt@oakgov.com 248-410-4908
Craig Tiell tiellc@oakgov.com 248-303-0930
Eric McGlothlin EMcGlothlin@dickinson-wright.com 248-433-7566
Steven Burke steveb@mfci.com 804-986-1419