HomeMy WebLinkAboutResolutions - 2024.05.22 - 41237
AGENDA ITEM: Authorizing the Issuance of Bonds to Finance Improvements to the City of Pontiac
Water Supply 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 #2024-4120 _ 24-36
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Bonds Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
The drinking water distribution system in Pontiac is in urgent need of improvement to continue to
provide uninterrupted service to city residents while complying with the lead and copper rule section
of the state's Safe Drinking Water Act.
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 $13,210,000 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 _ 24-22). 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 $13,210,000.
Project Description: The water main replacement project will upgrade the system in the area
between Elizabeth Lake Road and Orchard Lake Road, and between Telegraph Road and Johnson
Avenue, known as the Indian Village and Ottawa Hills Project. This area is served by piping that is
undersized and beyond its recommend useful life. Upgrades to known lead service lines will also
take place, in accordance with the Lead and Copper Rule section of the Michigan Safe Drinking
Water Act.
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
Jen Cook
Joel Brown
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 EDI Memo for Pontiac Water System Improvements
2. Pontiac area maps
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 #2024-4120 _ 24-36
Sponsored By: Yolanda Smith Charles
Water Resources Commissioner - Authorizing the Issuance of Bonds to Finance
Improvements to the City of Pontiac Water Supply 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 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
two or more series of bonds in the aggregate principal amount not to exceed $13,210,000 pursuant to
the provisions of Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”), which improvements
are known as the Indian Village and Ottawa Hills Project as hereinafter described (the “Project”); and
WHEREAS the Board of Commissioners has determined to sell one or more series of bonds (the
Drinking Water Revolving Fund “DWRF 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; and
WHEREAS the Board of Commissioners has also determined to sell one or more additional series of
bonds (the “Open Market Bonds” and together with the DWRF Bonds, the “Bonds”) to finance that
portion of the Project not financed with the proceeds of the DWRF Bonds or paid from other available
funds; 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 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 by the Board of Commissioners of the County of Oakland,
Michigan, as follows:
1. AUTHORIZATION OF BONDS-- PURPOSE. The Bonds of the County aggregating the principal sum of not to
exceed Thirteen Million Two Hundred Ten Thousand Dollars ($13,210,000) shall be issued and sold in two or more
series for the purpose of defraying the cost of the Project, including the cost of issuing the Bonds. The Project shall
consist, without limitation, of the replacement and upgrade of watermain and the replacement of 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.
The County Water Resources Commissioner, acting as County Agency for the County (the “County Agency”), shall
determine by order the portion of the Project to be financed by each series of the Bonds.
2. DWRF BONDS DETAILS. The DWRF Bonds shall be designated “Water Supply System Bonds, Series _____,” with
the year and letter as determined by the County Agency to be inserted in the blank in the name of each series of
the Open Market Bonds, or as such bonds may be 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 DWRF Bonds are registered in the name of the Authority, the
DWRF Bonds may be in the form of a single bond in a denomination equal to the aggregate outstanding principal
amount of the DWRF Bonds, with an exhibit attached thereto that identifies the annual maturities for the DWRF
Bonds, and references herein to the “DWRF 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% 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 DWRF Bonds shall not be more
than 30 years after the date that the DWRF Bonds are delivered to the initial purchaser thereof.
The DWRF 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 DWRF Bonds
shall be payable in lawful money of the United States. So long as the DWRF Bonds are owned by the Authority, the
DWRF Bonds are payable as to principal, redemption premium, if any, and interest at The Bank of New York Mellon
Trust Company, N.A., 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 DWRF 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 DWRF
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 DWRF Bonds are not registered in the name
of the Authority, the principal of and premium, if any, on the DWRF 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 DWRF 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 DWRF Bonds shall be subject to redemption prior to maturity upon the terms and
conditions set forth in the form of DWRF 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 DWRF BONDS. The DWRF 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 DWRF Bonds. After the DWRF 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 DWRF 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 DWRF Bonds. The bond registrar and paying agent shall indicate on each DWRF
Bonds the date of its authentication.
5. FORM OF DWRF BONDS. The DWRF Bonds shall be in substantially the following form, with such changes thereto
as 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
WATER SUPPLY SYSTEM BOND, SERIES _____
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 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 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, 20__. 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 2% 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 and its 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 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
(SEAL)
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: 7774-01
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 DWRF BOND FORM]
1. PRINCIPAL AND INTEREST FUND. There shall be established for each series of DWRF Bonds a Principal and
Interest Fund which shall be accounted for separately and shall be used only to retire such series of DWRF Bonds.
From the proceeds of the sale of each series of DWRF Bonds there shall be set aside in the respective Principal
and Interest Fund any premium and accrued interest received from the purchaser of the DWRF Bonds at the time
of delivery of the DWRF Bonds. All payments made by the County pursuant to section 24 hereof are pledged for
payment of the principal of and interest on the DWRF 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 respective series of
DWRF Bonds.
2. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the DWRF 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 DWRF 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 DWRF BONDS. Each series of DWRF 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 DWRF Bonds shall be initially sold to the
Authority as one bond, numbered 1, in the full aggregate principal amount of the DWRF 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 DWRF
Bonds or this Resolution to comply with the requirements of the Authority or otherwise to enable the DWRF 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 DWRF
Bonds in accordance with the provisions of this Resolution.
4. AUTHORIZATION OF OPEN MARKET BONDS – PURPOSE. The Open Market Bonds of the County shall be issued
and sold in one or more series as determined by the County Agency pursuant to the provisions of Act 34, and other
applicable statutory provisions, for the purpose of defraying that part of the cost of the Project not financed by the
DWRF Bonds or paid from other available funds.
5. OPEN MARKET BOND DETAILS. The Open Market Bonds shall be designated “Water Supply System
Bonds, Series ______,” with the year and letter as determined by the County Agency to be
inserted in the blank in the name of each series of the Open Market Bonds, or as such bonds
may be otherwise designated by the County Agency at the time of sale of the Bonds; shall be
dated as of the date approved 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 6% 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 a series of Open Market Bonds shall not be
more than 25 years after the date that such series of Open Market Bonds is delivered to the
initial purchasers thereof.
6. PAYMENT OF PRINCIPAL AND INTEREST. The principal of and interest on the Open Market Bonds shall be
payable in lawful money of the United States. Principal shall be payable upon presentation and surrender of the
Open Market Bonds to the bond registrar and paying agent as they severally mature. Interest shall be paid to the
registered owner of each Open Market 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 Open Market 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 Open Market 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 Open Market 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 make available one
or more separate certificates evidencing the Open Market Bonds to any Participant having Open Market Bonds
certified to its DTC account or to arrange for another securities depository to maintain custody of certificates
evidencing the Open Market Bonds.
Notwithstanding any other provision of this Resolution to the contrary, so long as any Open Market 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 Open Market Bond and all notices with respect to the Open Market Bond
shall be made and given, respectively, to DTC as provided in the Blanket Issuer Letter of Representations between
DTC and the County, and the County Treasurer and the County Agency are each authorized to sign such additional
documents as such officer deems necessary or appropriate in order to accomplish the issuance of the Open Market
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 Open Market Bonds shall not initially be issued through the book-entry-only transfer
system of DTC.
1. PRIOR REDEMPTION. The Open Market Bonds shall be subject to redemption prior to maturity upon such terms
and conditions as shall be determined by the County Agency.
2. 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 Open Market 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.
3. EXECUTION, AUTHENTICATION AND DELIVERY OF OPEN MARKET BONDS. The Open Market 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 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 Open Market Bonds. After the Open Market 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 Open Market 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 Open Market Bonds. The bond registrar
and paying agent shall indicate on each bond the date of its authentication.
4. FORM OF OPEN MARKET BONDS. The Open Market 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 OPEN MARKET BOND]
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
WATER SUPPLY SYSTEM BOND, SERIES _____
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, 20__. 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. 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 the bonds 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 the bonds 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 the bonds, 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 the bonds, 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 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 one or more interest payment dates 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, but without premium.
Not less than 30 days’ nor more than 60 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 manual or 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
By:
Chairperson, Board of Commissioners
And:
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 OPEN MARKET BOND FORM]
1. PRINCIPAL AND INTEREST FUND. There shall be established for each series of Open Market Bonds a Principal
and Interest Fund which shall be accounted for separately and shall be used only to retire such series of Open
Market Bonds. From the proceeds of the sale of each series of Open Market Bonds there shall be set aside in the
respective Principal and Interest Fund any premium and accrued interest received from the purchaser of the Open
Market Bonds at the time of delivery of the Open Market Bonds in the amounts determined by the County Agency.
All payments made by the County pursuant to section 24 hereof are pledged for payment of the principal of and
interest on the Open Market 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 respective series of Open Market Bonds.
2. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the Open Market Bonds shall be set aside
in a construction fund for the Project and used to defray the cost of the Project and, to the extent not needed to pay
the cost of the Project, shall be deposited in the Principal and Interest Fund established in section 19 hereof or,
alternatively, used to acquire and construct additional capital improvements to the System as determined by the
Board of Commissioners of the County.
3. SALE, ISSUANCE, DELIVERY, TRANSFER AND EXCHANGE OF OPEN MARKET BONDS. The County Agency is
hereby authorized to determine the principal amount of each series of Open Market Bonds to be sold and to
determine the other bond details as described in section 12 hereof and the terms and conditions for prior redemption
as described in section 15 hereof. The Open Market 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 Open Market Bonds and prescribe the form of notice of sale for the Open
Market Bonds and do all things necessary to effectuate the sale, issuance, delivery, transfer and exchange of the
Open Market Bonds in accordance with the provisions of this Resolution. The Open Market 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 Open Market Bonds and the winning bidder
upon the sale of the Open Market Bonds. The County Agency, the County Treasurer, the County Clerk and other
officers and employees of the County are authorized to do all other things necessary to effectuate the sale, issuance,
delivery, transfer and exchange of the Open Market Bonds in accordance with the provisions of this Resolution.
4. OFFICIAL STATEMENT. The County Agency and the County Treasurer are each authorized to cause the
preparation of an official statement for the Open Market Bonds for the purpose of enabling compliance with Rule
15c2-12 issued under the Securities Exchange Act of 1934, as amended (the “Rule”) and to do all other things
necessary to enable compliance with the Rule. After the award of the Open Market Bonds, the County will provide
copies of a “final official statement” (as defined in paragraph (f)(3) of the Rule) on a timely basis and in reasonable
quantity as requested by the successful bidder or bidders to enable such bidder or bidders to comply with
paragraphs (b)(3) and (b)(4) of the Rule and the rules of the Municipal Securities Rulemaking Board.
5. CONTINUING DISCLOSURE. The County Treasurer is authorized to execute a certificate of the
County, constituting an undertaking to provide ongoing disclosure about the County for the
benefit of the holders of the Open Market Bonds as required under paragraph (b)(5) of the Rule,
and amendments to such certificate from time to time in accordance with the terms of the
certificate (the certificate and any amendments thereto are collectively referred to herein as the
“Continuing Disclosure Certificate”). The County hereby covenants and agrees that it will comply
with and carry out all of the provisions of the Continuing Disclosure Certificate.
6. 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 the net revenues are authorized for the payment of the principal of and interest on the Open Market Bonds on
a parity basis with the Prior Bonds, to the extent that the Prior Bonds remain outstanding. The Open Market 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 Open Market 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 or
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 Open Market 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 $13,210,000 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 sections 3 and 13 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 (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.
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 OPEN MARKET BONDS. Within 30 days after the issuance of each series of Open
Market 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 Open Market 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
Water Supply 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 EDI Memo for Pontiac Water System Improvements
2. Pontiac area maps
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
Form DC–001
OAKLAND COUNTY WATER RESOURCES COMMISSIONER
Page 1 of 1 Rev.: 02/12/2018
4891-0679-7485 v2 [9007-452]
OAKLAND COUNTY
WATER RESOURCES COMMISSIONER MEMORANDUM
TO: Commissioner Yolanda Charles Smith, Chairperson of the Economic
Development and Infrastructure Committee
FROM: Jen Cook, P.E., Civil Engineer III, Project Manager
SUBJECT: Resolution to Issue Bonds for Improvements to the City of Pontiac Water
Distribution System
DATE: May 15, 2024
The City of Pontiac is in urgent need of improvements to the water distribution system. The system is
owned by Oakland County with Water Resources Commissioner Jim Nash acting as the County’s
agent. A water main replacement project will upgrade the system in the area between Elizabeth Lake
Road and Orchard Lake Road, and between Telegraph Road and Johnson Avenue. This area is
served by piping that is undersized and beyond its recommend useful life.
In accordance with the Lead and Copper Rule section of the Michigan Safe Drinking Water Act, lead
water service lines must be inventoried and replaced at a rate averaging 5% per year. Replacement
of known lead service lines in the project area will ensure the system is complying with that
requirement while minimizing neighborhood disruption.
The Water Resources Commissioner will issue bonds in an amount not to exceed $13,210,000.
Additional financial assistance, in the form of grants, principal forgiveness, and a low-interest loan of
up to $25,365,000, has been awarded to the project by the Michigan Department of Environment,
Great Lakes, and Energy for this project under the Drinking Water Revolving Fund.
Bonds will be issued in one or more series and secured by the County’s full faith and credit pledge
and repaid with revenues of the system. 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 from system funds and that system fund
advances would be repaid from proceeds of the bonds
.
Requested Action: Adopt the resolution as presented to issue bonds in one or more series in
an amount not to exceed $13,210,000 to finance a portion of the cost of improvements to the
City of Pontiac Water Distribution System.
Presenters: Jen Cook, P.E. cookjm@oakgov.com 947-955-6560
Joel Brown, P.E. brownjt@oakgov.com 248-410-4908
Eric McGlothlin EMcGlothlin@dickinson-wright.com 248-433-7566
Steven Burke steveb@mfci.com 804-986-1419