HomeMy WebLinkAboutResolutions - 2024.09.19 - 41914
AGENDA ITEM: Authorizing the Issuance of Bonds to Fund Improvements to the Huron Rouge
Sewage Disposal System
DEPARTMENT: Water Resources Commissioner
MEETING: Board of Commissioners
DATE: Thursday, September 19, 2024 9:30 AM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2024-4446 _ 24-68
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Bonds Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
Significant structural defects have been found in the Huron Rouge Sewage Disposal System. The
defects present long-term concerns for the structural integrity of the sewer pipe. Approximately
16,700 feet of pipe has been identified as needing rehabilitation and/or replacement. The sale of
bonds, not to exceed $30 million, secured by the full faith and credit of Oakland County, is needed
to fund a portion of the cost of improvements to the Huron Rouge Sewage Disposal System.
POLICY ANALYSIS
The Notice of Intent to issue bonds for the Huron Rouge Sewage Disposal System was approved by
the Board on July 18, 2024 through Resolution #2024-4263 _ 24-56. These bonds would be issued
in one or more series in the aggregate principal amount of not to exceed $30,000,000 for the
purposes of (i) defraying all or part of the cost of acquiring, constructing and installing sewage
disposal system improvements and facilities to improve the County’s Huron Rouge Sewage
Disposal System (the “System”) to serve the users of the System and the residents of the County.
Improvements shall include without limitation structural rehabilitation and installation of pipelining for
approximately 16,700 lineal feet of sanitary sewer system interceptor infrastructure and related
structures and facilities. The bonds will be issued under and pursuant to the provisions of Act No.
34, Public Acts of Michigan, 2001, as amended, and the principal of and interest on the bonds are to
be paid from revenues of the System.
BUDGET AMENDMENT REQUIRED: No
Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at
248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional
information.
CONTACT
Jen Cook
Ben Lewis
Eric McGlothlin
Steven Burke
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 9/19/2024
David Woodward, Board of Commissioners Approved - 9/19/2024
Walt Herzig, Executive's Office Approved - 9/20/2024
Lisa Brown, Clerk/Register of Deeds Final Approval - 9/23/2024
AGENDA DEADLINE: 09/19/2024 9:30 AM
ATTACHMENTS
1. EXHIBIT A HRSDS
2. 2024-09-11 HRSDS Novi Trunk Extension Map
3. 2024-09-11 EDI Memo for HRSDS Lining - Auth to sell bonds
COMMITTEE TRACKING
2024-09-11 Economic Development & Infrastructure - Forward to Finance
2024-09-11 Finance - Recommend to Board
2024-09-19 Full Board - Adopt
Motioned by: Commissioner Penny Luebs
Seconded by: Commissioner Robert Hoffman
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Christine
Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson,
William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann Erickson Gault,
Linnie Taylor (17)
No: None (0)
Abstain: None (0)
Absent: Kristen Nelson (1)
Passed
September 19, 2024
RESOLUTION #2024-4446 _ 24-68
Sponsored By: Yolanda Smith Charles
Water Resources Commissioner - Authorizing the Issuance of Bonds to Fund Improvements
to the Huron Rouge Sewage Disposal System
Chair and Members of the Board:
WHEREAS the Board of Commissioners of the County of Oakland (the “County”) has determined that it is necessary to
acquire, construct, and install sewage disposal system improvements to the Huron Rouge Sewage Disposal System (the
“System”) to serve the users of the System and the residents of the County, which improvements shall include without
limitation structural rehabilitation and installation of pipelining for approximately 16,700 lineal feet of sanitary sewer system
interceptor infrastructure and related structures and facilities, as well as all work, equipment, and appurtenances
necessary or incidental to these improvements, including without limitation the restoration of property, streets, rights of
way, and easements affected by the improvements, and such other System improvements as the County Water
Resources Commissioner, acting as County Agency for the County, shall determine to make (collectively, the “Project”)
through the issuance of bonds pursuant to the provisions of Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”);
and
WHEREAS the cost of the Project is estimated to be $30,000,000; and
WHEREAS the statutory limit for County debt is $10,664,998,561 (10% of State Equalized
Value). As of October 2, 2024, the total pledged debt is $615,598,095 or approximately 5.7721% of
the S.E.V.; and
WHEREAS the Board of Commissioners has determined to issue bonds and to use the proceeds of the sale of such
bonds to finance all or part of the cost of the Project; and
WHEREAS the County has agreed in a Continuing Covenant Agreement dated as of September 27, 2013, between the
County and Bank of America, N.A. (the “Bank of America Continuing Covenant Agreement”) to provide to Bank of
America, N.A. certain information pursuant to Article VI, Section 6.05 (f) of the Bank of America Continuing Covenant
Agreement which relates to a final official statement or other offering or disclosure document prepared in connection with
an offering of securities by the County.
NOW THEREFORE BE IT RESOLVED by the Board of Commissioners of the County of Oakland, Michigan, as follows:
1. AUTHORIZATION OF BONDS – PURPOSE. Bonds of the County aggregating the principal sum of not to exceed
Thirty Million Dollars ($30,000,000) shall be issued and sold in one or more series for the purpose of defraying all or
part of the cost of the Project.
2. BOND DETAILS. Each series of bonds shall be designated “Huron Rouge Sewage Disposal System Capital
Improvement Bonds” with such other title or with such additional series designation as may be determined by the
County Water Resources Commissioner, acting as County Agency for the County (the “County Agency”); shall be
dated as of the date approved by the County Agency; shall be issued in such aggregate principal amount as
determined by the County Agency; shall be numbered from 1 upwards; shall be fully registered; shall be in the
denomination of $5,000 each or any integral multiple thereof not exceeding the aggregate principal amount for each
maturity at the option of the purchaser thereof; shall bear interest at a rate or rates not exceeding 6% per annum as
shall be determined by the County Agency; shall be used to pay for such portion of the Project as determined by
the County Agency; 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 any series of bonds shall
not be later than 21 years after its date of issuance. If requested by the original purchaser of the bonds and
determined by the County Agency, the bonds may be issued in the form of a single bond with an exhibit containing
the principal maturity amounts and applicable interest rates and due dates.
3. PAYMENT OF PRINCIPAL AND INTEREST. The principal of and interest on the bonds shall be payable in lawful
money of the United States. Principal shall be payable upon presentation and surrender of the bonds to the bond
registrar and paying agent as they severally mature or otherwise as determined by the County Agency. Interest
shall be paid to the registered owner of each bond as shown on the registration books at the close of business on
the 15th day of the calendar month preceding the month in which the interest payment is due. Interest shall be paid
when due by wire transfer or other electronic means or by check or draft mailed by the bond registrar and paying
agent to the registered owner at the registered address or otherwise as determined by the County Agency.
4. BOOK-ENTRY SYSTEM. Initially one fully registered bond for each maturity, in the aggregate amount of such
maturity, shall be issued in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”) for the
benefit of other parties (the “Participants”) in the book-entry-only transfer system of DTC. In the event the County
determines that it is in the best interest of the County not to continue the book-entry system of transfer or that the
interests of the holders of the bonds might be adversely affected if the book-entry system of transfer is continued,
the County may notify DTC and the bond registrar and paying agent, whereupon DTC will notify the Participants of
the availability through DTC of bond certificates. In such event, the bond registrar and paying agent shall deliver,
transfer and exchange bond certificates as requested by DTC and any Participant or “beneficial owner” in
appropriate amounts in accordance with this Resolution. DTC may determine to discontinue providing its services
with respect to the bonds at any time by giving notice to the County and the bond registrar and paying agent and
discharging its responsibilities with respect thereto under applicable law or the County may determine that DTC is
incapable of discharging its duties and may so advise DTC. In either such event, the County shall use reasonable
efforts to locate another securities depository. Under such circumstances (if there is no successor securities
depository), the County and the bond registrar and paying agent shall be obligated to deliver bond certificates in
accordance with the procedures established by this Resolution. In the event bond certificates are issued, the
provisions of this Resolution shall apply to, among other things, the transfer and exchange of such certificates and
the method of payment of principal of and interest on such certificates. Whenever DTC requests the County and the
bond registrar and paying agent to do so, the County and the bond registrar and paying agent shall cooperate with
DTC in taking appropriate action after reasonable notice to make available one or more separate certificates
evidencing the bonds to any Participant having bonds certified to its DTC account or to arrange for another
securities depository to maintain custody of certificates evidencing the bonds.
Notwithstanding any other provision of this Resolution to the contrary, so long as any bond is registered in the name
of Cede & Co., as nominee of DTC, all payments with respect to the principal of, interest on and redemption
premium, if any, on such bonds and all notices with respect to the bonds shall be made and given, respectively, to
DTC as provided in the Blanket Issuer Letter of Representations relating to the bonds. The County Treasurer and
the County Agency are each authorized to sign the Blanket Issuer Letter of Representations on behalf of the
County, in such form as such officer deems necessary or appropriate in order to accomplish the issuance of the
bonds in accordance with law and this Resolution.
Notwithstanding any other provision of this section to the contrary, if the County Agency deems it to be in the best
interest of the County, the bonds shall not initially be issued through the book-entry-only transfer system of DTC.
5. PRIOR REDEMPTION. The bonds may be subject to optional and/or mandatory redemption prior to maturity upon
such terms and conditions as shall be determined by the County Agency.
6. BOND REGISTRAR AND PAYING AGENT. The County Treasurer shall designate, and may enter into an
agreement with, a bond registrar and paying agent for the bonds which shall be a bank or trust company located in
the State of Michigan which is qualified to act in such capacity under the laws of the United States of America or the
State of Michigan. The County Treasurer from time to time as required may designate a similarly qualified
successor bond registrar and paying agent. Notwithstanding any provision of this section to the contrary, if the
County Agency deems it to be in the best interest of the County, the County Treasurer shall serve as bond registrar
and paying agent for the bonds.
7. 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 an authorized representative of the bond registrar and paying
agent, and the seal of the County (or a facsimile thereof) shall be impressed or imprinted on the bonds. After the
bonds have been executed and authenticated for delivery to the original purchaser thereof, they shall be delivered
by the County Treasurer to the purchaser upon receipt of the purchase price. Additional bonds bearing the manual
or facsimile signatures of the Chairperson of the Board of Commissioners and the County Clerk and upon which the
seal of the County (or a facsimile thereof) is impressed or imprinted may be delivered to the bond registrar and
paying agent for authentication and delivery in connection with the exchange or transfer of bonds. The bond
registrar and paying agent shall indicate on each bond the date of its authentication.
8. EXCHANGE AND TRANSFER OF BONDS. Any bond, upon surrender thereof to the bond registrar and paying
agent with a written instrument of transfer satisfactory to the bond registrar and paying agent duly executed by the
registered owner or his duly authorized attorney, at the option of the registered owner thereof, may be exchanged
for bonds of any other authorized denominations of the same aggregate principal amount and maturity date and
bearing the same rate of interest as the surrendered bond.
Each bond shall be transferable only upon the books of the County, which shall be kept for that purpose by the
bond registrar and paying agent, upon surrender of such bond together with a written instrument of transfer
satisfactory to the bond registrar and paying agent duly executed by the registered owner or his duly authorized
attorney.
Upon the exchange or transfer of any bond, the bond registrar and paying agent on behalf of the County shall
cancel the surrendered bond and shall authenticate and deliver to the transferee a new bond or bonds of any
authorized denomination of the same aggregate principal amount and maturity date and bearing the same rate of
interest as the surrendered bond. If, at the time the bond registrar and paying agent authenticates and delivers a
new bond pursuant to this section, payment of interest on the bonds is in default, the bond registrar and paying
agent shall endorse upon the new bond the following: “Payment of interest on this bond is in default. The last date
to which interest has been paid is [appropriate date to be inserted].”
The County and the bond registrar and paying agent may deem and treat the person in whose name any bond shall
be registered upon the books of the County as the absolute owner of such bond, whether such bond shall be
overdue or not, for the purpose of receiving payment of the principal of and interest on such bond and for all other
purposes, and all payments made to any such registered owner, or upon his order, in accordance with the
provisions of section 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.
9. FORM OF BONDS. The bonds shall be in substantially the form attached hereto as Exhibit A, with such additions,
deletions and modifications as are approved by the County Agency and consistent with the terms of this
Resolution.
10. SECURITY. It is expected that the principal of and interest on the bonds will be paid from revenues of the
System, and such revenues are hereby authorized to be used for such purpose. In addition, the full faith
and credit of the County are pledged hereby to the payment of the principal 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. To the extent
that the revenues of the System are insufficient to pay the principal of and interest on the bonds, the
proceeds of such taxes (both current and delinquent) shall be deposited as collected into the principal and
interest fund established in section 12 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.
11. DEFEASANCE. In the event cash or direct obligations of the United States or obligations the principal of
and interest on which are guaranteed by the United States, or a combination thereof, the principal of and
interest on which, without reinvestment, come due at times and in amounts sufficient to pay, at maturity or
irrevocable call for earlier optional redemption, the principal of, premium, if any, and interest on the bonds,
or any portion thereof, shall have been deposited in trust, this Resolution shall be defeased with respect to
such bonds, and the owners of the bonds shall have no further rights under this Resolution except to
receive payment of the principal of, premium, if any, and interest on such bonds from the cash or
securities deposited in trust and the interest and gains thereon and to transfer and exchange bonds as
provided herein.
12. PRINCIPAL AND INTEREST FUND. There shall be established for the bonds a Principal and Interest Fund
which shall be kept in a separate bank account, provided, however, that such Principal and Interest Fund
may be pooled or combined for deposit or investment purposes with other debt retirement funds created
for nonvoted debt of the County (other than any special assessment debt). From the proceeds of the sale of
the bonds there shall be set aside in the Principal and Interest Fund any premium as determined by order
of the County Agency and any accrued interest received from the purchaser of the bonds at the time of
delivery of the same. Funds of the County to be used to pay the principal and interest on the bonds when
due shall be placed in the principal and interest fund and so long as the principal or interest on the bonds
shall remain unpaid, no moneys shall be withdrawn from such principal and interest fund except to pay
principal and interest on the bonds.
13. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the bonds 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 12 hereof.
14. ESTIMATES OF PERIOD OF USEFULNESS AND COST. The estimated period of usefulness of the Project is
hereby determined to be not less than twenty (20) years and upwards, and the plans for and the estimated
cost of the Project in the amount of $30,000,000 are hereby approved and adopted.
15. 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.
16. SALE, ISSUANCE, DELIVERY, TRANSFER AND EXCHANGE OF BONDS. The County Agency is hereby
authorized to determine the principal amount of the bonds to be sold and to determine the other bond
details as described in section 2 hereof and the terms and conditions for optional and/or mandatory
redemption as described in section 5 hereof. The bonds shall be sold at a competitive sale in accordance
with the provisions of Act 34 and other applicable laws of this state. In connection therewith, the County
Agency shall set the time and date for the sale of the bonds and prescribe the form of notice of sale for the
bonds and do all things necessary to effectuate the sale, issuance, delivery, transfer and exchange of the
bonds in accordance with the provisions of this Resolution. The bonds shall be sold at a price that is not
less than 99% of their par value, as determined by the County Agency. The County Agency is hereby
authorized to approve by written order the interest rates on the bonds and the winning bidder upon the sale
of the bonds. The County Agency, the County Treasurer, the County Clerk and other 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 bonds in accordance with the provisions of this Resolution.
17. 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 17 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.
18. OFFICIAL STATEMENT. The County Agency and the County Treasurer are each authorized to cause the
preparation of an official statement for the 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 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
paragraph (b)(4) of the Rule and the rules of the Municipal Securities Rulemaking Board.
19. 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 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.
20. TAX COVENANT. The County covenants to comply with all requirements of the Internal Revenue Code of
1986, as amended, necessary to assure that the interest on the bonds will be and will remain excludable
from gross income for federal income tax purposes. The County Agency, the County Treasurer, the County
Clerk and other appropriate County officials are authorized to do all things necessary to assure that the
interest on the bonds will be and will remain excludable from gross income for federal income tax
purposes.
21. NOTICE OF ISSUANCE OF BONDS. Within thirty (30) days after the issuance of the bonds, either (1) a copy
of the final official statement or other offering or disclosure document prepared by the County in
connection with the issuance of the bonds or (2) notice that such information has been filed with the
Electronic Municipal Market Access system of the Municipal Securities Rulemaking Board and is publicly
available shall be furnished to Bank of America, N.A. at the following locations:
Bank of America, N.A.
Mail Code: IL4-135-07-28
135 South LaSalle Street
Chicago, IL 60603
Attention: Thomas R. Denes
Bank of America, N.A.
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.
22. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they may be in conflict herewith
are hereby rescinded.
Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith
Charles.
Date: September 19, 2024
David Woodward, Commissioner
Date: September 20, 2024
Walt Herzig, Chief Deputy County Executive
Date: September 23, 2024
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2024-09-11 Economic Development & Infrastructure - Forward to Finance
2024-09-11 Finance - Recommend to Board
2024-09-19 Full Board - Adopt
Motioned by Commissioner Penny Luebs seconded by Commissioner Robert Hoffman to adopt the
attached Bonds: Authorizing the Issuance of Bonds to Fund Improvements to the Huron Rouge
Sewage Disposal System.
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Christine Long,
Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William
Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ann Erickson Gault, Linnie
Taylor (17)
No: None (0)
Abstain: None (0)
Absent: Kristen Nelson (1)
Passed
ATTACHMENTS
1. EXHIBIT A HRSDS
2. 2024-09-11 HRSDS Novi Trunk Extension Map
3. 2024-09-11 EDI Memo for HRSDS Lining - Auth to sell bonds
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
September 19, 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 Thursday, September 19, 2024.
Lisa Brown, Oakland County Clerk / Register of Deeds
EXHIBIT A
[FORM OF BOND TO BE COMPLETED AFTER BOND SALE]
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
HURON ROUGE SEWAGE DISPOSAL SYSTEM
CAPITAL IMPROVEMENT BOND, SERIES 2024
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 [paying agent] in the city of [city],
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 [month] and [month] in each
year, commencing [month] 1, [year]. 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 [principal] Dollars ($[principal
amount]) issued by the County under and pursuant to and in full conformity 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 all or part of the
cost of acquiring, constructing, and installing sewage disposal system improvements to the Huron Rouge
Sewage Disposal System to serve users of the Huron Rouge Sewage Disposal System in the County of
Oakland, Michigan (the “System”).
The County has authorized the revenues 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. The principal
of and interest on the bonds 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 [year] are subject to mandatory prior redemption at par and accrued
interest as follows:
[MANDATORY PRIOR REDEMPTION TABLE(S) INSERTED AFTER BOND SALE, IF NECESSARY]
Bonds or portions of bonds to be redeemed by mandatory redemption shall be selected by lot.
OPTIONAL PRIOR REDEMPTION
Bonds maturing prior to [month] 1, [year], are not subject to redemption prior to maturity. Bonds
maturing on and after [month] 1, [year], are subject to redemption prior to maturity at the option of the
County, in such order as shall be determined by the County, on any date on and after [month] 1, [year].
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.
Not less than thirty nor more than sixty days' notice of redemption shall be given by first-class mail
to the registered owners of bonds called to be redeemed at their registered addresses. Failure to receive
notice of redemption shall not affect the proceedings for redemption. Bonds or portions of bonds called for
redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the
bond registrar and paying agent to redeem the same.
It is hereby certified, recited and declared that all acts, conditions and things required to exist,
happen and be performed precedent to and in the issuance of the bonds of this series, existed, have
happened and have been performed in due time, form and manner as required by law, and that the total
indebtedness of the County, including the series of bonds of which this bond is one, does not exceed any
constitutional or statutory limitation.
IN WITNESS WHEREOF, the County of Oakland, Michigan, by its Board of Commissioners, has
caused this bond to be executed in its name by facsimile signatures of the Chairperson of the Board of
Commissioners and the County Clerk and its corporate seal (or a facsimile thereof) to be impressed or
imprinted hereon. This bond shall not be valid unless the Certificate of Authentication has been manually
executed by an authorized representative of the bond registrar and paying agent.
COUNTY OF OAKLAND
By: [Form only – Not for signature]
Chairperson, Board of Commissioners
[SEAL]
And: [Form only – Not for signature]
County Clerk
[STANDARD FORMS OF AUTHENTICATION CERTIFICATE AND ASSIGNMENT TO BE INSERTED]
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 Smith Charles, Chairperson of the Economic
Development and Infrastructure Committee
FROM: Jen Cook, P.E., Civil Engineer III, Project Manager
Ben Lewis, P.E., Assistant Chief Engineer
SUBJECT: Resolution to Authorize the Bond Sale for Improvements to the Huron Rouge
Sewage Disposal System
DATE: September 11, 2024
In July of 2024, this Committee authorized the publication of a Notice of Intent to Issue Bonds in an
amount not to exceed $30 million to finance a portion of the cost of improvements to the Huron
Rouge Sewage Disposal System (HRSDS) and declaring its intent to reimburse project costs from
bond proceeds.
The HRSDS Novi Trunk Extension extends from the north side of Interstate Freeway I-96 and east of
Taft Road to Chattman Street north of 9 Mile Road in Novi, Michigan. A 2019 closed-circuit television
inspection found significant structural defects, including loss of concrete pipe thickness resulting from
microbial-induced corrosion, infiltration, exposed aggregate, and surface spalling. These defects
present long-term concern of the structural integrity of the sewer pipe. To address these conditions,
the proposed HRSDS Novi Trunk Extension No. 1 Sewer Rehabilitation Project has been developed
to reline certain sections of the sewer. The sections of HRSDS identified for rehabilitation are
constructed of 36-inch diameter precast reinforced concrete pipe and are approximately 16,700 feet
in combined length.
Bonds will be issued in one or more series and secured by Oakland 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, and system fund advances would
be repaid from proceeds of the bonds. The 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 authorizing issuance of bonds in an
amount not to exceed $30 million to finance a portion of the cost of improvements to the
Huron Rouge Sewage Disposal System.
Presenters: Jen Cook cookjm@oakgov.com 947-955-6560
Ben Lewis lewisbe@oakgov.com 248-292-9357
Eric McGlothlin EmcGlothlin@dickinson-wright.com 248-433-7566
Steven Burke steveb@mfci.com 804-986-1419