Title
Adoption of Resolution authorizing the County Bond Counsel to proceed with the necessary actions to refund the Crake and Chester Drain Debt
Body
Whereas, pursuant to the provisions of Chapter 20 of Act No. 40, Public Acts of Michigan, 1956, as amended, the Chester Drainage District has issued its Drain (LTGO) Bonds dated February 1, 1995 (the "Prior Bonds"), in the original principal amount of $2,450,000 to defray part of the cost of acquiring and constructing the Chester Drain in anticipation of the collection of the several installments against the City of Rochester Hills (the "City") on the Special Assessment Roll for the Chester Drain; and
Whereas, the City of has been advised that conditions in the bond market have now improved from the conditions which prevailed at the time the Prior Bonds were sold and that the Prior Bonds could be refunded at a considerable savings to the City; and
Whereas, it is the determination and judgment of this City Council that the Prior Bonds should be refunded to secure for the City the anticipated savings.
Now Therefore Be It Resolved by the City Council of the City of Rochester Hills, Michigan, as follows:
1. The Chester Drainage District is requested and authorized to issue its refunding bonds (the "Refunding Bonds") pursuant to the provisions of Act No. 34, Public Acts of Michigan, 2001, as amended, in an amount necessary to refund all or part of the Prior Bonds (as shall be determined by the Drainage Board) and paying the costs of issuing the Refunding Bonds.
2. The proceeds of the Refunding Bonds shall be sufficient to pay the costs of issuing the Refunding Bonds and to establish an Escrow Fund in an amount which will be sufficient to pay the principal of, the redemption premiums on, and the interest on the Prior Bonds that are refunded without further payment by the City.
3. The City agrees and consents to the imposition of special assessments against the City on a refunding bonds special assessment roll for the payment of the Refunding Bonds.
4. The Manager, or if there is no Manager, the Mayor is authorized to file an Application for State Treasurer's Approval to Issue Bonds with respect to the Refunding Bonds.
5. The Clerk, Treasurer, Manager or Mayor is authorized to approve the circulation of a preliminary and final official statement for the Refunding Bonds, to cause the preparation of those portions of the preliminary and final official statement that pertain to the City, and to do all other things necessary for compliance with Rule 15c2-12 issued under the Securities Exchange Act of 1934, as amended (the "Rule"). The Clerk, Treasurer, Manager or Mayor is authorized to execute and deliver such certificates and to do all other things necessary to effectuate the sale and delivery of the Refunding Bonds.
6. The Clerk, Treasurer, Manager or Mayor is authorized to execute a certificate of the City, constituting an undertaking to provide ongoing disclosure about the City for the benefit of beneficial owners of the Refunding 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 attached hereto as Appendix A (the "Continuing Disclosure Certificate"). The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate.