Loading...
HomeMy WebLinkAboutCOUNCIL MINUTES 1998-02-25 30767 MINUTES OF THE ONE THOUSAND THREE HUNDRED AND SIXTY-THIRD REGULAR MEETING OF THE COUNCIL OF THE CITY OF LIVONIA On February 25, 1998, the above meeting was held at the City Hall, 33000 Civic Center Drive, Livonia, Michigan, and was called to order by the President of the Council at 8 00 p m. Council Vice President Walsh delivered the invocation Roll was called with the following result: John J Walsh, Val I Vandersloot, John R. Pastor, Brian Duggan, Joe Laura, Maureen Miller Brosnan, and Jack Engebretson. Absent: None. Elected and appointed officials present: Jack E. Kirksey, Mayor; John Nagy, City Planner; Robert J Schron, City Engineer; Sean P Kavanagh, City Attorney; Ann W Tavolacci, Deputy City Clerk; Karen A. Szymula, Director of Legislative Affairs; and Michael T Slater, Director of Finance iii• On a motion by Brosnan, seconded by Laura, and unanimously*adopted, it was: #125-98 RESOLVED, that the minutes of the 1,362nd Regular Meeting of the Council of the City of Livonia, held February 11, 1998, are hereby approved as•submitted. *Councilmember Duggan abstained from voting, which is recorded as a "yes" vote under the provisions of Section 2 04 1908 of the Livonia Code of Ordinances Mayor Kirksey read and presented a commendation from his office and the City Council to David A. Brandon, Chairman, President and Chief Executive Officer of Valassis Communications, Inc., commending him for his leadership and Valassis Communications, Inc. on being named one of the 100 Best Companies to Work for in America, chosen in December, 1997 by Robert Levering and Milton Moskowitz, as reported in the January 12, 1998 edition of Fortune magazine No one from the audience spoke at this time A communication from the Engineering Division, dated February 18, 1998, re: status of the Hillcrest Court Development Project, located at Five Mile and Spanich 30768 Court on the east side of Kroger, was received and placed on file for the information of the Council A communication from Councilmember Brosnan, dated February 25, 1998, reforwarding a proposed draft of a Family Day-Care Ordinance was received and placed on file for the information of the Council (Consent Agenda Item #15) On a motion by Duggan, seconded by Brosnan, it was. #126-98 RESOLVED, that having considered a letter from Richard L. Kent, on behalf of Old Rosedale Gardens Homeowners Association, dated October 13, 1997, and a communication from Steven M Mitzel, President of the Old Rosedale Gardens Homeowners Association, dated February 3, 1998, and correspondence from the Department of Law, dated January 14, 1998, approved for submission by the Mayor, regarding the installation of a stone pillar in an existing right-of-way as an entrance marker to the Old Rosedale Gardens Subdivision, the Council does hereby refer this matter to the Planning Commission, the Engineering Division and the Department of Law for their respective reports and recommendations #127-98 RESOLVED, that having considered Petition 98-2-3-1 submitted by William Wright, received in the Office of the City Clerk on February 2, 1998, wherein a request is submitted for the vacating of a certain 10 foot surface drainage easement located at 18000 Floral (Lot 45), the Council does hereby refer this item to the City Planning Commission for action and recommendation in accordance with provisions of law and City ordinance #128-98 RESOLVED, that having considered a letter from Penny McCusker, Co-Chair of the Greater Detroit Romance Writers of America, received in the Office of the City Clerk on February 9, 1998, the Council does hereby take this means to indicate that the Greater Detroit Romance Writers of America is recognized by the City of Livonia as a non-profit service organization and that the City of Livonia has no objection to a license being issued to the Greater Detroit Romance Writers of America by the Michigan Bureau of State Lottery #129-98 RESOLVED, that having considered a communication from the Mayor, dated February 10, 1998, to which is attached proposed contract language regarding the selection of the Fire Training Coordinator for the City's Emergency Medical/Advanced Life Support Programs and provisions relative to paramedic assignments and requirements, and a communication from the Personnel Director, dated February 13, 1998, transmitting a copy of a resolution adopted by the Civil Service 30769 Commission on February 12, 1998, wherein the Civil Service Commission re-titled the classification of Fire Training Officer to Fire Training Coordinator and has recognized the terms and conditions of the agreement ratified January 26, 1998, between the City of Livonia and the Livonia Firefighters Union to remove the position from the Seniority Block System, the Council does hereby concur in the recommendation of the Civil Service Commission and does hereby approve the contract language in the manner and form herein submitted #130-98 RESOLVED, that having considered a letter from the Michigan Liquor Control Commission, dated November 25, 1997, and the report and recommendation of the Chief of Police, dated February 3, 1998, in connection therewith, the Council does hereby recommend approval of the request from G M. and S Roast Beef and Spirits, Inc. to add Carolyn A. Chemello as new stockholder in 1997 Class C licensed business with Official Permit (Food) through transfer of partial shares (735) from existing stockholder, Severo Chemello, for a business located at 36685 Plymouth, Livonia, Michigan, Wayne County; and the City Clerk is hereby requested to forward a certified copy of this resolution to the Michigan Liquor Control Commission #131-98 RESOLVED, that having considered the report and recommendation of the Director of Public Works, dated January 30, 1998, which bears the signature of the Director of Finance and is approved for submission by the Mayor, the Council does hereby accept the unit price bid of Steinkopf Nursery, 20815 Farmington Road, Farmington Hills, Michigan 48336, for completing all work required in connection with the City's 1998 Street Tree Planting Program for the estimated total cost of $44,687 50, based upon the Public Service Division's estimate of units involved, and subject to final payment based upon the actual units completed in accordance with the unit prices accepted herein, said estimated cost and unit prices having been in fact the lowest bid received for this item, and the Director of Public Works is hereby authorized to approve minor adjustments in the work as it becomes necessary; and the Mayor and City Clerk are hereby authorized to execute a contract for and on behalf of the City of Livonia with the aforesaid bidder and to do all other things necessary or incidental to the full performance of this resolution #132-98 RESOLVED, that having considered a communication from the Public Utility Manager and the Director of Public Works, dated February 3, 1998, which bears the signature of the Director of Finance and is approved for submission by the Mayor, with respect to the bid received for roof renovations at Clements Circle Pool, Botsford Pool and Ford Field Concession Stand, the Council does hereby reject the bid received on September 30, 1997, in connection with this item, the action herein being taken for the reasons indicated in the aforesaid communication, FURTHER, the Council does hereby authorize the 30770 Director of Public Works, together with the Director of Finance, to do all things necessary to re-bid this project in accordance with the provisions set forth in the Financial Ordinance, the same to thereafter be submitted to Council for its consideration #133-98 RESOLVED, that having considered the report and recommendation of the Director of Public Works, dated February 9, 1998, which bears the signature of the Director of Finance and is approved for submission by the Mayor, to which is attached a proposed Rouge River National Wet Weather Demonstration Project Grant Finance Agreement between the County of Wayne and the City of Livonia for the design and construction of a Street Waste Transfer Facility at the City Landfill Yard, the Council does hereby authorize the Mayor and City Clerk, for and on behalf of the City of Livonia, to execute this contract in the manner and form herein submitted, FURTHER, the Council does hereby authorize the Director of Public Works to apply for a General Stormwater Discharge Permit for the City of Livonia through the Michigan Department of Environmental Quality #134-98 RESOLVED, that having considered the report and recommendation of the Department of Law, dated February 3, 1998, approved for submission by the Mayor, with regard to the proposed sale of City-owned property located at 9864 Stark Road, the Council does, in accordance with Section 23 01(a) of Zoning Ordinance 543, hereby request that the City Planning Commission conduct a public hearing and thereafter submit its report and recommendation on the question of whether this City-owned property should be rezoned from RUF to a more appropriate zoning classification, such as R-1 A communication from the Department of Law, dated February 3, 1998, re administrative response to CR 41-98 - the Court Recording Services Contract for the Zoning Board of Appeals with MAT Court Recording and Court Services -was received and placed on file for the information of the Council #135-98 RESOLVED, that having considered the report and recommendation of the Department of Law, dated February 3, 1998, to which is attached a proposed extension of the current contract between the City of Livonia and MAT Court Recording and Court Services, 6225 Ardmore Park Circle, Dearborn Heights, Michigan 48127, to provide recording and transcription services for the City of Livonia Zoning Board of Appeals Meetings, the Council does hereby reaffirm its prior approval as granted in Council Resolution 1048-97 and which approval has been pre-approved by the Director of Finance and the City Attorney 30771 #136-98 RESOLVED, that having considered a communication from the Department of Law, dated February 2, 1998, submitted pursuant to Council Resolution 1010-97, transmitting for Council acceptance a Warranty Deed dated January 30, 1998, executed by Steven M and Aii• Barbara D Lietzau, conveying to the City certain property described as follows. The North 60 feet of the following parcel of land. Part of the Northeast 1/4 of Section 8, T 1 S , R. 9 E., beginning North 89°44'10" East along the north line of Section 8 (also being the centerline of Seven Mile Road), 920 50 feet, thence North 89°44'10" East along said north line 138 0 feet; thence South 00°09'44" East 320 80 feet; thence South 89°44'10" West 138.0 feet; thence North 00°09'44" West 320 80 feet to the point of beginning. Subject to easements of record. (36255 Seven Mile Road - Tax ID No 46-029-99-0026-003) Vacant land. the Council does hereby, for and in behalf of the City of Livonia, accept the aforesaid Warranty Deed, and the City Clerk is hereby requested to have the same recorded in the Office of the Register of Deeds and to do all other things necessary or incidental to fulfill the purpose of this resolution, and FURTHER, that the Mayor and City Clerk are authorized to execute a Quit Claim Deed conveying the above-described property to the County of Wayne in a form to be approved by the Department of Law #137-98 RESOLVED, that having considered the report and recommendation of the City Engineer, dated January 28, 1998, which bears the signature of the Director of Finance, is approved by the Director of Public Works and approved for submission by the Mayor, submitted pursuant to Council Resolution 1026-97, the Council does hereby authorize the Engineering Division to contact the Wayne County Department of Public Services to initiate the installation of a traffic signal at Pembroke Avenue and Newburgh Road with funding from the General Obligation Road Improvement Bond Issue A communication from the Engineering Division, dated January 28, 1998, re administrative response to CR 1027-97 - proposed plans for the redevelopment of Newburgh Road between Seven Mile Road and Eight Mile Road - was received and placed on file for the information of the Council #138-98 RESOLVED, that having considered the report and recommendation of the City Engineer, dated January 27, 1998, approved by the Director of Public Works and approved for submission by the Mayor, regarding construction of new sidewalks in conjunction with the 30772 reconstruction and widening of Seven Mile Road at the locations and in the amounts indicated in the attachment to the aforesaid communication, which work was done pursuant to Council Resolution 716-96, and in accordance with the provisions of Section 12 04 340 of Chapter 4 of Title ritm. 12 of the Livonia Code of Ordinances, as amended, the City Treasurer is hereby directed to send a statement of charges to all property owners in the amounts listed above in accordance with Section 3 08 150 of Title 3, Chapter 8 of the Livonia Code of Ordinances, as amended, and the Council does hereby establish the evening of Wednesday, May 6, 1998, at 8 00 p m. at the Livonia City Hall, 33000 Civic Center Drive, Livonia, Michigan, as the time and place when the Council shall meet for the purpose of adopting a resolution placing a special assessment upon said property for such charges unless the same are paid prior to the date of such meeting; and the City Clerk and City Treasurer are hereby requested to do all things necessary or incidental to the full performance of this resolution. #139-98 RESOLVED, that having considered a communication from Councilmember Joe Laura, dated February 11, 1998, regarding the subject of"Home Businesses", the Council does hereby refer this matter to the Legislative Committee for its report and recommendation. #140-98 RESOLVED, that having considered a request from Councilmember Maureen Miller Brosnan regarding the subject of zoning regulations pertaining to in-home child care businesses, the Council does hereby refer this matter to the Legislative Committee for its report and recommendation. #141-98 RESOLVED, that having considered the report and recommendation of the Superintendent of Public Service and the Director of Public Works, dated February 10, 1998, which bears the signature of the Director of Finance and is approved for submission by the Mayor, the Council does hereby accept the unit price quotation of Polar Environmental, 707 Lewiston, Ferndale, Michigan 48220, for leachate disposal services for the period from March 11, 1998, to September 1, 1998, at the unit rate of $0 04 per gallon for the estimated total cost of $60,000 00 based upon the Department of Public Works' estimate of units involved and subject to the final payment based upon the actual units completed in accordance with the unit prices accepted herein, FURTHER, the Council does hereby authorize the expenditure of a sum not to exceed $60,000 00 from the Municipal Refuse Fund and does hereby authorize an additional appropriation in the amount of$30,000 00 from the fund balance of the Municipal Refuse Fund for this purpose, and the Director of Public Works is hereby authorized to approve minor adjustments in the work as it becomes necessary; and the Mayor and City Clerk are hereby authorized to execute a contract, for and on behalf of the City of Livonia, with the aforesaid company and to do all other things necessary or incidental to the full performance of this resolution, FURTHER, the 30773 Council does hereby authorize the action herein without competitive bidding for the reasons indicated in the aforesaid communication, and such action is taken in accordance with the provisions set forth in Section 3 04 140D4 of the Livonia Code of Ordinances, as amended A roll call vote was taken on the foregoing resolutions with the following result: AYES Walsh, Vandersloot, Pastor, Duggan, Laura, Brosnan, and Engebretson NAYS None On a motion by Duggan, seconded by Walsh, and unanimously adopted, it was: #142-98 WHEREAS, pursuant to the direction of the City Council in its resolution 93-98, adopted on January 28, 1998, and in accordance with Section 3 08 100 of the Livonia Code of Ordinances, as amended, the City Assessor of the City of Livonia has prepared, reported and certified to the Council under date of February 4, 1998, assessment rolls dated February 4, 1998, for the proposed improvement consisting of removing the existing asphalt curb sections, installing two foot (2') wide concrete curbs and gutters and resurfacing the center of the pavement with 1-1/2" of asphalt (Modified Alternate III), OR consisting of removing the existing asphalt curb sections, installing two foot (2') wide concrete curbs and gutters with a 2" asphalt surface and resurfacing the center of the pavement with 1-1/2" of asphalt (Modified Alternate III), OR consisting of removing the existing asphalt curb sections, installing two foot (2') wide asphalt curbs and gutters and resurfacing the pavement with 1-1/2" of asphalt (Modified Alternate III), thus retaining the current total width of 19-1/2 feet on Hubbard Road, Cranston, Blackburn, Ingram, Berwick, Auburndale, Melrose and Arden Avenues between Plymouth Road and West Chicago, as well as Elmira and Orangelawn Avenues between Hubbard and Merriman Roads, in the Old Rosedale Gardens Subdivision in the Northeast 1/4 of Section 34, T 1 S , R. 9 E., City of Livonia, Wayne County, Michigan, containing the special assessments to be assessed and levied, respectively, in the proposed special assessment district heretofore established for the construction and operation of the proposed improvement in said district as designated in Council Resolution 93-98, THEREFORE, BE IT RESOLVED, that the said rolls are hereby accepted by the City Council, that they are hereby ordered to be filed in the Office of the City Clerk for public examination, that the City Clerk be and hereby 30774 is directed to give notice as required by the provisions of Section 3 08 110 of the Livonia Code of Ordinances, as amended, to wit: that the assessment rolls have been made and filed in the Office of the City Clerk for public examination and that the City Council of the City of Livonia will meet in the City Hall, 33000 Civic Center Drive, Livonia, Michigan, on Wednesday, April 1, 1998, at 7 00 p m. to review the said special assessment rolls, at which time and place opportunity will be given to all interested persons to be heard, IT IS FURTHER RESOLVED, that the City Clerk be and hereby is directed to publish a notice of said public hearing at least once in the official newspaper of the City of Livonia which is published and circulated generally in and throughout the said City, at least ten (10) days prior to the aforesaid date of April 1, 1998, the City Clerk is also directed to give notice of said hearing by sending written notice thereof by first class mail to each and every property owner in the proposed assessment district as their respective names and addresses appear on the most current assessment roll in the City Assessor's office A communication from Richard Taubman, Taubman, Nadis & Gorosh, P C , on behalf of L. T Company, L.L.0 , dated February 25, 1998, re withdrawing Petition 97-12-1-21 for a change of zoning of property located on the southeast corner of Eight Mile and Louise Avenue in the Northeast 1/4 of Section 2, from M-1 to C-2, was received and placed on file for the information of the Council On a motion by Duggan, seconded by Pastor, it was: RESOLVED, that having considered a communication from the City Planning Commission, dated February 11, 1998, which sets forth its resolution 2-14-98, adopted on February 10, 1998, with regard to Petition 97-12-1-21, submitted by L. T Company L.L.0 , for a change of zoning of property located on the southeast corner of Eight Mile and Louise Avenue in the Northeast 1/4 of Section 2, from M-1 to C-2, the Council does hereby determine to take no further action on this matter Duggan and Pastor withdrew their motions on the foregoing resolution On a motion by Duggan, seconded by Pastor, and unanimously adopted, it was: rimy #143-98 RESOLVED, that having considered a communication from the City Planning Commission, dated February 11, 1998, which sets forth its resolution 2-14-98, adopted on February 10, 1998, with regard to 30775 Petition 97-12-1-21, submitted by L. T Company L.L C , for a change of zoning of property located on the southeast corner of Eight Mile and Louise Avenue in the Northeast 1/4 of Section 2, from M-1 to C-2, the Council does hereby deny Petition 97-12-1-21 due to the fact that the petitioner withdrew the request for rezoning A petition submitted by Geraldine Crossley, 19830 Parkville, Livonia, MI 48152, dated September 13, 1995, re containing 40 signatures of residents against sidewalks being installed on Parkville was received and placed on file for the information of the Council On a motion by Laura, seconded by Duggan, and unanimously adopted, it was. #144-98 RESOLVED, that having considered the report and recommendation of the Streets, Roads and Plats Committee, dated February 3, 1998, submitted pursuant to Council Resolution 569-95, and a communication from Louis and Tammy Terzano, 20205 Parkville, Livonia, Michigan 48152, received by the City Clerk's Office on July 7, 1995, to which is attached a petition from persons residing on Parkville Street, east of Middlebelt and north of Seven Mile Road, requesting that sidewalks be installed on both sides of Parkville Street between Seven Mile and Morlock in Section 1, and a communication from the City Engineer, dated August 7, 1995, the Council does hereby determine to take no further action with respect to this matter On a motion by Laura, seconded by Brosnan, and unanimously adopted, it was. #145-98 RESOLVED, that having considered the report and recommendation of the Streets, Roads and Plats Committee, dated February 3, 1998, submitted pursuant to Council Resolution 711-95, regarding the matter of the installation of sidewalks in connection with the development of a child care center on property located at 36475 Five Mile Road (St. Mary Hospital) and the matter of street lights and pedestrian walk lights at the intersection of Five Mile and Levan Roads, the Council does hereby amend and revise Council Resolution 525-96 so as to have the same read as follows 30776 RESOLVED, that having considered the report and recommendation of the Streets, Roads and Plats Committee, dated May 14, 1996, submitted pursuant to Council Resolution 792-95, in connection with the report and recommendation of the City Engineer, dated October 13, 1995, approved for submission by the Mayor, to which is attached a letter from Richard L. Hodges, Engineer of Traffic Operations, Wayne County Division of Roads, dated July 6, 1994, and having considered the necessity for installation of pedestrian indicators and traffic signal modernization at the intersection of Five Mile and Levan Roads, the Council does hereby approve and authorize the said installation of pedestrian indicators and traffic control modernization and does hereby request that the County of Wayne begin redesign plans for this intersection, FURTHER, the Council does hereby approve of the City assuming 50% of the cost of such modernization at this intersection, and for this purpose, does hereby appropriate and authorize the expenditure of a sum not to exceed $20,000 00 from the Michigan Transportation Fund (Major Road Account), and the Mayor and City Clerk are hereby authorized to execute a contract for and on behalf of the City of Livonia for such work; and the City Clerk is requested to send a certified copy of this resolution to the Wayne County Department of Public Services, Division of Roads, PROVIDED, FURTHER, that the Council does hereby amend and revise Council Resolution 800-94 so as to provide that the construction of public sidewalk on the south side of Five Mile Road, 328 feet from the point of intersection of the right-of-way lines at the southwest corner of Five Mile and Levan Roads, shall be constructed on or before July 1, 1998, and the balance of Council Resolution 800-94 shall remain in full force and effect; FURTHER, the Engineering Division is requested to submit a report on the progress of this matter for review at the first Regular Meeting of the Council in July of 1998 On a motion by Laura, seconded by Brosnan, it was #146-98 RESOLVED, that having considered the report and recommendation of the Streets, Roads and Plats Committee, dated February 3, 1998, submitted pursuant to Council Resolution 711-95, regarding the matter of the installation of sidewalks in connection with the development of a child care center on property located at 36475 Five Mile Road (St. Mary Hospital) and the matter of street lights and pedestrian walk lights at the intersection of Five Mile and Levan Roads, the Council does hereby amend and revise Council Resolution 525-96 so as to have the same read as follows am. RESOLVED, that having considered the report and recommendation of the Streets, Roads and Plats Committee, dated May 14, 1996, submitted pursuant to Council Resolution 792-95, in 30777 connection with the report and recommendation of the City Engineer, dated October 13, 1995, approved for submission by the Mayor, to which is attached a letter from Richard L. Hodges, Engineer of Traffic Operations, Wayne County Division of Roads, dated July 6, 1994, and having considered the necessity for installation of pedestrian indicators and traffic signal modernization at the intersection of Five Mile and Levan Roads, the Council does hereby approve and authorize the said installation of pedestrian indicators and traffic control modernization and does hereby request that the County of Wayne begin redesign plans for this intersection, FURTHER, the Council does hereby approve of the City assuming 50% of the cost of such modernization at this intersection, and for this purpose, does hereby appropriate and authorize the expenditure of a sum not to exceed $20,000 00 from the Michigan Transportation Fund (Major Road Account), and the Mayor and City Clerk are hereby authorized to execute a contract for and on behalf of the City of Livonia for such work; and the City Clerk is requested to send a certified copy of this resolution to the Wayne County Department of Public Services, Division of Roads; PROVIDED, FURTHER, that the Council does hereby amend and revise Council Resolution 800-94 so as to provide that the construction of public sidewalk along the west side of Levan to the first driveway south, shall be constructed on or before July 1, 1998, and the balance of Council Resolution 800-94 shall remain in full force and effect; FURTHER, the Engineering Division is requested to submit a report on the progress of this matter for review at the first Regular Meeting of the Council in July of 1998 A roll call vote was taken on the foregoing resolution with the following result: AYES Vandersloot, Pastor, Duggan, and Brosnan. NAYS Walsh, Laura and Engebretson. The President declared the resolution adopted. Sister Renetta, President of St. Mary Hospital, indicated her disappointment with respect to the required sidewalk construction A communication from the Engineering Division, dated February 2, 1998, re Recommended Improvements in the Goodell-Grivas, Inc. Study and Plan Status Update was received and placed on file for the information of the Council (CR 537-96) 30778 On a motion by Laura, seconded by Duggan, and unanimously adopted, it was #147-98 RESOLVED, that having considered the report and recommendation of the Streets, Roads and Plats Committee, dated February 3, 1998, submitted pursuant to Council Resolution 574-97, and a communication from the City Planning Commission, dated June 23, 1997, which transmits its resolution 6-102-97, adopted on June 17, 1997, with regard to the proposed preliminary plat of Kingston Village Subdivision to be located on the east side of Newburgh Road, between Joy Road and Ann Arbor Trail in the Southwest 1/4 of Section 32, City of Livonia, Wayne County, Michigan, and the preliminary plat having been approved by the City Planning Commission on June 17, 1997, the Council does hereby determine to take no further action with respect to this matter On a motion by Duggan, seconded by Walsh, it was. RESOLVED, that having considered the report and recommendation of the Committee of the Whole, dated February 9, 1998, submitted pursuant to Council Resolution 1014-97, and a communication from the City Planning Commission, dated October 8, 1997, which sets forth its resolution 9-152-97 adopted on September 30, 1997, with regard to Petition 97-8-1-11, as amended, submitted by Elaine Beresh and Jack Shenkman for a change of zoning of property located on the southwest corner of Seven Mile and Newburgh Roads in the Northeast 1/4 of Section 7, from OS to C-1, and the Council having conducted a public hearing with regard to this matter on December 1, 1997, pursuant to Council Resolution 856-97, the Council does hereby determine to keep this item in committee Duggan and Walsh withdrew their motions on the foregoing resolution. On a motion by Laura, seconded by Duggan, it was #148-98 RESOLVED, that having considered the report and recommendation of the Committee of the Whole, dated February 9, 1998, submitted pursuant to Council Resolution 1014-97, and a communication from the City Planning Commission, dated October 8, 1997, which sets forth its resolution 9-152-97 adopted on September 30, 1997, with regard to Petition 97-8-1-11, as amended, submitted by Elaine Beresh and Jack Shenkman for a change of zoning of property located on the southwest corner of Seven Mile and Newburgh Roads in the Northeast 1/4 of Section 7, from OS to C-1, and the Council having conducted a public hearing with regard to this matter on December 1, 1997, pursuant to Council Resolution 856-97, the Council does hereby approve Petition 97- 8-1-11 for preparation of the ordinance for submission to Council, and 30779 the City Planner is hereby instructed to cause the necessary map for publication to be prepared indicating the zoning change herein approved and to furnish the same to the Department of Law and, upon receipt of such map, the Department of Law is requested to prepare an ordinance Elmo amending Ordinance 543, as amended, in accordance with this resolution A roll call vote was taken on the foregoing resolution with the following result. AYES Walsh, Duggan, Laura, and Engebretson NAYS Vandersloot, Pastor and Brosnan. The President declared the resolution adopted. A communication from Michael P McGee, dated February 18, 1998, re Ethics Board appointments was received and placed on file for the information of the Council A communication from the Office of the Mayor, dated January 29, 1998, re appointment recommendations to serve on the Board of Ethics was received and placed on file for the information of the Council A communication from the Office of the Mayor, dated February 23, 1998, re suggested terms of office and compensation for recommended appointees to the Board of Ethics was received and placed on file for the information of the Council On a motion by Laura, seconded by Walsh, it was #149-98 RESOLVED, that having considered the report and recommendation of the Committee of the Whole, dated February 17, 1998, submitted pursuant to Council Resolution 1050-97, and a communication from the Mayor, dated December 12, 1997, and a subsequent communication from the Mayor, dated January 29, 1998, concerning the appointments of various individuals to the Board of Ethics, and pursuant to Section 2 200 070 of the Livonia Code of Ordinances, as amended, the Council does hereby approve of and concur in the appointments of the following individuals to the Board of Ethics for the terms of office as designated herein provided that such individuals take the Oath of Office, as required in Chapter 10, Section 2 of the City Charter, to be administered by the City Clerk: 30780 Richard McDowell, for a three-year term expiring March 1, 2001, James McCann, for a three-year term expiring March 1, 2001, Audrey Greenleaf, for a two-year term expiring March 1, 2000; Jacob Ghannam, for a two-year term expiring March 1, 2000; Lora Weingarden, for a one-year term expiring March 1, 1999 FURTHER, that the following rates of compensation shall apply for Members of the Board of Ethics. $75 00 per quarterly meeting/Members 85 00 per quarterly meeting/Chairperson 35 00 per additional meeting/Members 45 00 per additional meeting/Chairperson A roll call vote was taken on the foregoing resolution with the following result: AYES Walsh, Vandersloot, Pastor, Laura, and Engebretson. NAYS Duggan and Brosnan The President declared the resolution adopted On a motion by Brosnan, seconded by Duggan, it was. #150-98 RESOLVED, that the Council does hereby refer to the Legislative Committee for its report and recommendation the subject of an ordinance amendment for the selection process of Board of Ethics Members A roll call vote was taken on the foregoing resolution with the following result: AYES Walsh, Vandersloot, Pastor, Duggan Brosnan, and Engebretson. NAYS Laura. The President declared the resolution adopted On a motion by Brosnan, seconded by Duggan, it was. #151-98 RESOLVED, that having considered the report and recommendation of the Committee of the Whole, dated February 17, 1998, submitted pursuant to Council Resolution 1050-97, a communication from the Mayor, dated December 12, 1997, and a subsequent communication from the Mayor, dated January 29, 1998, concerning the appointments of various individuals to the Board of Ethics, the Council does hereby refer the subject of whether any potential conflict of interest between Schoolcraft College and the City exists with respect to 30781 Members serving on the Board of Ethics to the Department of Law for a report and recommendation A roll call vote was taken on the foregoing resolution with the following result: AYES Vandersloot, Pastor, Duggan, Brosnan, and Engebretson. NAYS Walsh and Laura. The President declared the resolution adopted. Brosnan gave first reading to the following Ordinance AN ORDINANCE AMENDING CHAPTER 18 (PLYMOUTH ROAD DEVELOPMENT AUTHORITY DEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLAN) OF TITLE 3 OF THE LIVONIA CODE OF ORDINANCES, AS AMENDED The foregoing Ordinance, when adopted, is filed in the Journal of Ordinances in the Office of the City Clerk and is the same as if word for word repeated herein. The above Ordinance was placed on the table for consideration at the next regular meeting. On a motion by Duggan, seconded by Brosnan, and unanimously adopted, it was. #152-98 WHEREAS, there exists in and for the City of Livonia, County of Wayne, State of Michigan (the "City"), an imperative need to acquire, construct, furnish and equip a new fire station, together with necessary site improvements and all appurtenances and attachments thereto (the "Project"), and WHEREAS, this City Council has determined, and does hereby reaffirm, that it is necessary for the public health, safety and welfare of the City to construct the Project for the use of the City; and WHEREAS, Act 31, Public Acts of Michigan, 1948 (First Extra Session), as amended ("Act 31"), provides through the procedures of building authority financing a means for the acquisition, construction and financing of the Project; and WHEREAS, the City, in accordance with the provisions of Act 31, has previously adopted Articles of Incorporation and has established the Municipal Building Authority of Livonia (the "Authority"), with full powers to acquire and construct the Project; and 30782 WHEREAS, this City Council determines it to be in the best interest of the City to acquire, construct and finance the Project through the Authority in accordance with the provisions of Act 31, and WHEREAS, a Limited Tax Full Faith and Credit General Obligation Contract of Lease dated as of February 25, 1998 (the "Contract") between the City and the Authority providing for the acquisition and construction of the Project and such matters as are deemed necessary thereto was prepared and approved by both the Authority and the City; and NOW, THEREFORE, BE IT RESOLVED THAT 1 The City Council hereby determines it to be necessary for the public health, safety and welfare of the City to acquire and construct the Project for the use of the City 2 The City Council deems it to be in the best interest of the City to finance part of the cost of the Project through the Authority in accordance with the provisions of Act 31, in the amount of One Million Seven Hundred Thousand Dollars ($1,700,000) with the remaining portion of the cost of the Project being defrayed from City funds on hand and legally available for such use 3 The City Council hereby approves the Contract for the acquisition, construction and financing of the Project, as hereto attached. 4 The Mayor and the City Clerk of the City are authorized to execute immediately and deliver to the Authority the Contract approved by this resolution The Contract shall become effective upon the expiration of sixty (60) days following the date of publication of the Notice of Intention of entering into limited tax supported Contract of Lease previously published by the City Clerk in the Livonia Observer, unless under the provisions of Section 8b of Act 31 the effectiveness of the Contract is stayed by reason of the filing of a petition for referendum thereon within forty-five (45) days of the date of publication and the resultant necessity of prior approval thereof by the qualified electors of the City 5 The City Council does hereby ratify and confirm its covenant in the Contract to levy ad valorem taxes against all taxable property in the City to the extent necessary to meet the obligations of the City thereunder in the event revenues from other sources, are insufficient for any reason whatsoever Any such taxes levied to pay the Cash Rentals under the Contract shall be limited as to rate or amount in the manner provided by law 6 The City hereby covenants to take all action within its control to the extent permitted by law necessary to maintain the exclusion of the 30783 interest on the bonds described in the Contract from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the "Code"), including but not limited to, actions relating to the rebate of arbitrage earnings and the expenditure and investment of proceeds of the bonds and moneys deemed to be proceeds of the bonds 7 The Finance Director, the Mayor and the City Clerk each is hereby authorized and directed to execute and deliver such documents, instruments and certificates, including without limitation documents, instruments and certificates necessary or desirable to satisfy the requirements of the Code in relation to arbitrage and rebate 8. The Finance Director, the Mayor and the City Clerk each is hereby authorized and directed, on behalf of the City and in accordance with the City Charter and other applicable procedures and ordinances, to take any and all actions, perform any and all acts and execute any and all contracts, applications and other documents as shall be required, necessary or desirable to effect the proper public or private sale, execution and delivery of the Bonds and to implement the Contract, including, but not limited to• applying for prior approval of the Bonds or an exception therefrom, if available, from the Michigan Department of Treasury (the "Department") and making any other filings for waivers or otherwise with the Department respecting the Bonds; applying for ratings on the Bonds and consulting with rating agencies in connection therewith, applying for municipal bond insurance and consulting with insurance companies in connection therewith, causing a preliminary and final official statement with respect to the Bonds to be prepared, 9 The City hereby agrees to enter into an undertaking for the benefit of the holders and beneficial owners of the Bonds pursuant to Rule 15c2-12 of the U S Securities and Exchange Commission and the Finance Director and the Mayor are hereby authorized to execute such undertaking prior to delivery of the Bonds. 10 The City hereby approves the retention of Miller, Canfield, Paddock and Stone, P L.0 as bond counsel and Stauder, Barch & Associates, Inc. as financial advisor to the Authority 11 All resolutions and parts of resolutions insofar as the same conflict with the provisions of this resolution be and the same hereby are rescinded. 30784 LIMITED TAX FULL FAITH AND CREDIT GENERAL OBLIGATION CONTRACT OF LEASE MADE AND EXECUTED this 25th day of February, 1998, by and between the MUNICIPAL BUILDING AUTHORITY OF LIVONIA, a public corporation organized and existing under the authority of Act 31, Public Acts of Michigan, 1948 (First Extra Session), as amended (the "AUTHORITY"), and the CITY OF LIVONIA, a Michigan municipal corporation organized and existing under the Constitution and laws of the State of Michigan (the "CITY"), WITNESSETH WHEREAS, the AUTHORITY has been incorporated under and in pursuance of the provisions of Act 31, Public Acts of Michigan, 1948 (First Extra Session), as amended (the "Act"), for the purposes set fortes in its Articles of Incorporation, and WHEREAS, the CITY desires to acquire, construct, furnish and equip a new fire station, as well as site improvements and all appurtenances and attachments therefor, all as described in plans therefor (herein sometimes called the "Project"), and the AUTHORITY is willing to acquire the Project and lease the same to the CITY, and WHEREAS, site of the Project and buildings and improvements thereon (collectively, the "Site"), will be transferred to and acquired by the AUTHORITY pursuant to this Limited Tax Full Faith and Credit General Obligation Contract of Lease (the "Contract") prior to the issuance of bonds by the AUTHORITY, and WHEREAS, the acquisition of the Project by the AUTHORITY for use by the CITY is necessary for the public health, safety and welfare of the CITY, and the use of the AUTHORITY to accomplish such acquisition represents the most practical means to that end at the lowest cost to the CITY, and WHEREAS, the total cost of the Project is estimated to be the sum of Two Million Six Hundred Fifty Thousand Dollars ($2,650,000), which will include architects' fees, legal and financing costs, and contingencies, and WHEREAS, the CITY and the AUTHORITY have determined that part of the cost of the Project should be paid by the authorization and issuance of bonds (the "Bonds") by the AUTHORITY in anticipation of the limited tax full faith and credit general obligation contractual commitments of the CITY under this Contract, pursuant to the provisions of the Act, in the principal amount of not to exceed One Million Seven Hundred Thousand Dollars ($1,700,000), with the remaining portion of the cost of the Project being defrayed from City funds on hand and legally available for such use, and WHEREAS, as a prerequisite to the authorization and issuance of the Bonds, it is necessary for the parties hereto to enter into this Contract whereby the AUTHORITY will lease 30785 the Project and Site to the CITY and the CITY will lease the same from the AUTHORITY for a period extending beyond the last maturity date of the Bonds, but not to exceed a period of fifty (50) years, and WHEREAS, this Contract has been executed by the CITY pursuant to a resolution of the City Council of the CITY adopted on February 25, 1998, and notice thereof has been published in a newspaper of general circulation in the CITY, and this Contract will become effective when sixty (60) days have elapsed following such publication and no valid petition for referendum on the effectiveness of this Contract has been filed with the City Clerk of the CITY within forty five (45) days of publication of the notice, IT IS, THEREFORE, AGREED BY AND BETWEEN THE PARTIES HERETO, for and in consideration of the agreement and covenants of each other and moneys to be paid out to the other, as follows. 1 (a) The CITY will, at or prior to delivery of the Bonds, cause to be conveyed and transferred to the AUTHORITY, by deed or long term lease, such rights in the Site described in the preamble hereto as to permit free and unrestricted use thereof by the AUTHORITY to acquire the Project, and (b) the AUTHORITY will enter into a final contract or contracts calling for the acquisition and construction of the Project and shall proceed to cause the Project to be acquired, constructed and equipped in accordance with plans prepared by the architects, to be submitted by the AUTHORITY to the CITY and approved by the CITY 2 In consideration of the rentals and other terms and conditions herein specified, the AUTHORITY does hereby let and lease the Project and the Site to the CITY and the CITY does hereby let and lease the Project and the Site from the AUTHORITY, TO HAVE AND TO HOLD for a term commencing on the date possession of the same is to be delivered hereunder pursuant to Section 14 hereof and ending on a day fifty (50) years from the date hereof, or such lesser period as may be authorized by the provisions of this Contract. 3 The CITY hereby covenants and agrees to pay to the AUTHORITY cash rentals for the use of the Project (hereinafter referred to as "Cash Rental" or "Cash Rentals") in amounts based upon the AUTHORITY's debt service requirements on the Bonds, as hereinafter set forth Except as otherwise provided in the resolution authorizing the issuance of the Bonds, together with any resolution authorizing the sale, execution and delivery of the Bonds (together, the "Bond Resolution"), the terms of which Bond Resolution are incorporated herein by this reference and will, to the extent in conflict with the provisions of this Contract so amend this Contract, the Bonds will be issued with principal maturities or be subject to mandatory sinking fund redemption on May 1 of each year as follows 30786 Year Amount Year Amount Year Amount 1999 $50,000 2006 $70,000 2013 $105,000 2000 50,000 2007 75,000 2014 110,000 2001 55,000 2008 80,000 2015 115,000 2002 55,000 2009 85,000 2016 120,000 2003 60,000 2010 90,000 2017 125,000 2004 65,000 2011 95,000 2018 130,000 2005 65,000 2012 100,000 The CITY irrevocably covenants and agrees to pay to the AUTHORITY, commencing the first principal payment date and annually thereafter so long as any of the Bonds are outstanding, Cash Rentals in an amount corresponding to the principal amount of Bonds maturing or coming due by mandatory sinking fund redemption on the corresponding principal payment dates, provided, however, that if the maturity schedule for the Bonds is amended by the Bond Resolution, the due dates for Cash Rentals shall thereby be amended accordingly Payment of Cash Rentals shall be made by the CITY to the paying agent for the Bonds directly, it being understood that such transfer by the CITY shall be done for and on behalf of the AUTHORITY The CITY acknowledges also that the Bonds will be issued at a maximum interest rate of not to exceed nine percent (9%) per annum to be determined at public sale thereof and that so long as Bonds remain outstanding, such interest will accrue on the outstanding principal balance semiannually Therefore, the CITY further irrevocably covenants and agrees to pay to the AUTHORITY, as a part of Cash Rentals, commencing on the first interest payment date and semiannually thereafter on each May 1 anti November 1 so long as Bonds are outstanding, such additional sums as shall be necessary to pay interest due on the Bonds prior to the next succeeding Cash Rental payment date Payment of Cash Rentals shall be made by the CITY to the paying agent for the Bonds directly, it being understood that such transfer by the CITY shall be done for and on behalf of the AUTHORITY It is understood and agreed by the parties hereto that the CITY's minimum Cash Rental obligation hereunder shall be the payment of such amounts as shall equal debt service requirements on the Bonds falling due prior to the next Cash Rental payment date However, the CITY shall retain the unrestricted right and privilege to prepay at any time whatever amounts of Cash Rentals it may choose in order to retire fully or partially the Bonds and any interest then due thereon or in order to provide for such retirement at a specified future date The total aggregate obligation of the CITY hereunder for Cash Rentals shall at any given point in time be equal to the sum of the Cash Rentals yet to be paid to retire principal of the Bonds, plus interest accrued thereon since the last Cash Rental payment at the rate borne by the Bonds The 30787 CITY warrants and represents that the amount of its obligations under this Contract, when taken together with other indebtedness of the CITY, will not cause its obligations under this Contract to exceed any constitutional, statutory or charter debt limitation applicable to the CITY The AUTHORITY shall, within thirty (30) days after the delivery of the Bonds, furnish the CITY with a complete schedule of maturities of principal and interest thereon, and the AUTHORITY shall also, at least thirty (30) days prior to each Cash Rental due date, advise the CITY, in writing, of the exact amount of Cash Rental due on the next said date, and the CITY shall pay such amount on the due date 4 Except to the extent that the CITY and the AUTHORITY have agreed otherwise by separate written documents, the CITY, at its own expense during the term of this Contract, shall operate, maintain and keep in repair the Project and the Site, and the total expense in connection therewith shall be borne and paid by the CITY in addition to all other rentals herein required. Operation and maintenance shall include any and all costs and expenses of operation and maintenance and such costs and expenses of repairs and maintenance as are necessary to keep the Project and the Site in good repair and working order, and shall include, but not to the exclusion of any other items not herein specified, heating, lighting, snow and debris removal, painting and such other repair and maintenance items as are necessary to provide for efficient operation of the Project and the Site, and to keep the same in good repair and working order, as well as proper insurance coverages Further the CITY shall pay, as part of the operation and maintenance expense, upon written notification by the AUTHORITY, and within thirty (30)days after receipt thereof, such amounts as shall be required to meet all reasonable administrative costs and operating expenses of the AUTHORITY, including transfer agent fees, Bond registration fees and any other costs or expenses of the AUTHORITY incidental to the issuance and payment of the Bonds or attributable to the Project or the Site 5 It is understood and agreed by and between the parties hereto that the Bonds will be issued by the AUTHORITY in anticipation of the CITY's contractual Cash Rental obligation, as stated in Section 3 hereof The CITY, pursuant to authorization of Section 8a of the Act, hereby recognizes and affirms that its contractual obligations expressed in Sections 3 and 4 hereof are full faith and credit general obligations of the CITY The CITY expressly and irrevocably pledges its limited tax full faith and credit for the prompt and timely payment of the Cash Rentals pledged for payments of the Bonds as expressed in Section 3 of this Contract, and shall each year, commencing with the fiscal year commencing December 1, 1997, appropriate from its general funds as a first budget obligation sufficient moneys to pay such Cash Rentals Such pledge shall include, if necessary, the obligation to levy annually, except as provided below, such ad valorem taxes on all the taxable property in the CITY which, taking into consideration estimated delinquencies in tax collections, shall be fully sufficient to pay such Cash Rentals under and pursuant to this Contract Such levy, however, shall be subject to applicable constitutional, statutory and charter tax rate limitations and shall not be in an amount or at a rate exceeding that necessary to pay such Cash Rentals, such levy being for the purpose of providing funds to meet the contractual obligations of the CITY in anticipation of which the Bonds are issued Nothing herein contained shall be construed to prevent the CITY from using any, or any combination, of the means and methods provided in 30788 Section 8a of the Act for the purpose of providing funds to meet its obligations under this Contract, and if at the time of making any annual tax levy there shall be other funds on hand earmarked and set aside for the payment of the contractual obligations due prior to the next tax collection period, then such tax levy may be reduced by such amount It is agreed and understood by the parties hereto that the CITY intends to use revenue derived from the Project to make its payments to the AUTHORITY hereunder 6 The CITY will include in its budget for the fiscal year commencing December 1, 1997 and shall include in its budget for each fiscal year thereafter, an amount sufficient to pay the total obligations under this Contract coming due in each such fiscal year Annually before finalization of its budget for the next ensuing fiscal year the CITY shall prepare and transmit to the AUTHORITY a statement of the moneys to be included in said budget for payment of all costs of the Project. The AUTHORITY shall have the right to communicate directly with the City Council of the CITY regarding any items in said budget relative to the Project which might be disputed, and, in any event, the budget shall be reasonably adequate to cover all obligations of the CITY herein contained in this Contract. 7. The CITY may at any time pay in advance any of the obligations required to be paid by this Contract, in which event the AUTHORITY shall credit the CITY with advance payment on future-due payments to the extent of such advance payment The CITY may also specify by written request that any Cash Rentals paid in advance of the requirements set out in Section 3 hereof be used to purchase Bonds for redemption prior to maturity, either currently or at some future date, to the extent the provision for prior redemption is made in the Bonds, in which event the AUTHORITY shall be obligated to apply and use said advance payments for such purpose to the fullest extent possible 8 The CITY may install in the Project or on the Site such equipment or fixtures as it may desire 9 The CITY covenants and agrees that it will not permit the use of the Project or the Site in any manner that will result in a violation of local, state or federal laws, rules or regulations now or hereafter in force Mid. applicable thereto and shall keep the AUTHORITY and the members of its Commission harmless and indemnified at all times against any loss, damage or expenses by any accident, loss, casualty or damage resulting to any person or property through any use, misuse, or nonuse of the Project and Site, or by reason of an act or thing done or not done on, in or about the Project or Site or in relation thereto The CITY further covenants and agrees that it will promptly, and at its own expense, make and pay for any and all changes and alterations in or about the Project and the Site which during the term of this Contract may be required to be made at any time by reason of local, state or federal laws and to save the AUTHORITY harmless and free from all costs or damage in respect thereto 10 To carry out the acquisition and construction of the Project and the financing thereof in accordance with the provisions of said Act, the following actions shall be taken by the AUTHORITY (a) The AUTHORITY will enact the necessary Bond Resolution to authorize 30789 the issuance of the Bonds in anticipation of the Cash Rentals to be paid by the CITY hereunder The AUTHORITY will offer for sale and take such other necessary legal procedures as may be necessary to sell the Bonds as soon as (i) this Contract becomes effective and (ii) all other steps required to be taken prior to sale of the Bonds have been accomplished (b) The AUTHORITY will promptly enter into and execute contracts for the acquisition of the Project in accordance with the plans and specifications therefor prepared and approved by the CITY No changes in said plans and specifications shall be made by the AUTHORITY without the consent of the CITY The AUTHORITY shall not execute any contract in connection with the acquisition of the Project until the same has been approved by the City Council of the CITY (c) The AUTHORITY will require and secure from any contractor undertaking any work to be performed on the said Project necessary and proper bonds to guarantee the performance of said contract and labor and material bonds in such amounts and in such forms as may be approved by the City Attorney of the CITY. (d) The AUTHORITY will immediately upon receipt of the proceeds of sale of the Bonds comply with all requirements provided for in the Bond Resolution relative to the disposition and use of such proceeds (e) The AUTHORITY may invest any bond proceeds or other funds held by it as permitted by law and investment income shall accrue to and follow the fund producing such income However, the AUTHORITY shall not invest, reinvest, or accumulate any moneys deemed to be proceeds of the Bonds pursuant to federal Internal Revenue Code of 1986, as amended (the "Code"), and the applicable regulations thereunder, in such a manner as to cause the Bonds to be "arbitrage bonds" within the meaning of the Code and applicable regulations thereunder The AUTHORITY and the CITY will take or abstain from taking all actions required by the Code and regulations thereunder as may be necessary to retain for the interest on the Bonds the exemption from direct federal income taxation 11 In the event that it should be determined that for any reason there are not sufficient funds to complete the acquisition of the Project, or if repair, replacement or alteration of the Project should be required to make the Project useable for its originally intended purpose, and additional funds become necessary therefor, it is agreed by the parties hereto that this Contract may be supplemented or amended to provide for the issuance of additional bonds by the AUTHORITY to provide sufficient funds to complete, repair, replace or alter the Project and also to increase the Cash Rental by an amount fully sufficient to pay all principal of and interest on the Bonds herein referred to and such additional bonds when due In the event such determination of insufficient funds should be made after the letting of contracts for construction of the Project, but before completion thereof, the AUTHORITY shall be authorized, on its own motion, to issue such additional bonds as may be necessary to provide sufficient funds to complete the Project or to make necessary repairs, replacements or alterations 30790 therein, and the Cash Rental to be paid by the CITY shall automatically be increased by an amount fully sufficient to pay all principal of and interest on the Bonds herein referred to and such additional bonds when due In the event any additional bonds are issued, the duties and obligations of the AUTHORITY and the CITY as expressed and set forth in this Contract shall be applicable to such additional bonds as well as the Bonds herein referred to, it being at all times fully recognized and agreed that the Cash Rentals to be paid by the CITY, as specified in Section 3 of this Contract, shall be based upon the total amount of bonds issued to pay the costs of the Project. Any such additional bonds shall mature serially or be payable by mandatory sinking fund redemption on the dates as provided in Section 3 of this Contract and the Cash Rentals coming due on the dates as provided in Section 3 of this Contract for the Cash Rentals shall be increased by the principal amount of such additional bonds maturing on the dates as provided in Section 3 of this Contract. All of the provisions of this Contract shall be applicable to said increased amounts Immediately upon the issuance of such additional bonds, the AUTHORITY shall furnish and supply the CITY documentation specifying the new schedule of Bond payments and Cash Rentals, increased as herein authorized, which shall be substituted and take the place of the schedules herein specified. In the event additional bonds are issued, all references herein to the Bonds shall be deemed to include such additional bonds In lieu of the issuance of additional bonds, the AUTHORITY and the CITY may enter into any other mutually agreeable arrangement to meet increased costs or bring such costs within the amount of funds available for construction of the Project. 12 In the event, by reason of favorable construction bids received, or for any other reason, it is not necessary to issue the Bonds in the full amount presently anticipated, the AUTHORITY shall be authorized, after consultation with the CITY, to reduce the amount of Bonds to such lesser principal amount as may be necessary to pay the cost of the Project and also to reduce the Cash Rental of the CITY so that the payments shall be sufficient to pay all principal of and interest on the Bonds All the provisions of this Contract shall be applicable to said reduced amounts and/or said amended due dates the same as though such Bonds and Cash Rentals were originally in said reduced amounts and/or with said amended due dates In such event, the AUTHORITY shall furnish and supply to the CITY documentation specifying the new schedule of Bond Payments and Cash Rentals, reduced and/or rescheduled as herein authorized, including copies of the Bond Resolution and any amendments thereto, which shall be substituted and take the place of the schedules herein specified. 13 After completion of the Project and payment of all costs thereof, any unexpended balance remaining from the proceeds of sale of Bonds and the amounts to be paid by the CITY to the AUTHORITY pursuant to Section 3 of this Contract, shall be used by the AUTHORITY, upon request made by resolution of the City Council of the CITY and with the approval of the Michigan Department of Treasury (or any successor agency thereto, if any), to the extent required by law, for improvements or enlargement of the Project or for any other projects of the AUTHORITY leased to the CITY Any balance remaining after such use shall be applied to debt service requirements and shall reduce the next due Cash Rentals to the extent of such application 14 The AUTHORITY shall deliver possession of the Project and the Site to the CITY 30791 simultaneously with conveyance thereof by the CITY to the AUTHORITY, as provided in Section 1(a) hereof The Project shall be completed as promptly as possible but in the event that for any reason whatsoever the Project is not completed in a timely fashion, the obligation of the CITY for the payment of the Cash Rentals and other costs of the Project and the performance of its other commitments under this Contract shall in any event remain in full force and effect in order to provide for the payment of principal of and interest on the Bonds and other costs in connection therewith 15 The CITY shall provide (a) liability insurance to the extent necessary to protect the AUTHORITY and the CITY against loss on account of damage or injury to persons or property imposed by reason of the ownership of the Project and the site or resulting from any act of omission or commission on the part of the AUTHORITY or the CITY, their agents, officers and employees, in connection with the operation, maintenance or repair of Project and the Site or the furnishing of any service to the CITY, (b) casualty insurance against such risks and in such amounts as are usually carried on projects of similar size and nature, and (c) funds to pay the premium on a sufficient fidelity bond from any person handling the funds of the AUTHORITY 16 Any funds received by the AUTHORITY or the CITY from any insurance policies, or otherwise, because of casualty or damage to the Project or the Site shall be used promptly to restore the Project to a condition satisfactory to the CITY If such funds are not sufficient to so restore the Project or the Site, the CITY may provide sufficient additional funds therefor in such amounts as the CITY and the AUTHORITY may agree upon, or the CITY and the AUTHORITY may agree to issue additional bonds for such restoration, in which event the provisions of Section 11 hereof with respect to additional bonds and increased Cash Rentals shall apply If in the judgment of the AUTHORITY, concurred in by the CITY, the funds received from any insurance policies, or othdrViise, by the AUTHORITY or the CITY shall be insufficient to restore the Project to a condition satisfactory to the CITY and if additional CITY funds are not made available or additional bonds are not authorized to make proper restoration, then, in that case, the AUTHORITY shall hold and/or invest the funds paid to it by reason of such loss for the benefit of the holders of the Bonds, and when upon receipt of sufficient Cash Rentals from the CITY which, together with the proceeds of the insurance and other available funds, will be sufficient to pay the principal of and interest on the Bonds, said moneys shall be deposited by the AUTHORITY, in trust, for the benefit of the bondholders and used to pay the principal of and interest on said Bonds as they mature 17 The leasehold rights, duties and obligations of the CITY as specified in this Contract shall not be assigned nor sublet, in whole or in part, during the term of this Contract or while any of the Bonds are outstanding and unpaid, except to the extent that such assignment or sublease benefits and serves a legitimate public purpose of the CITY, in which event the CITY shall be authorized to assign this Contract or sublet the Project, the Site, or any part 30792 thereof, but only to the extent and in the manner that the CITY could assign or sublet if it were the owner of the Project and the Site In no event shall any assignment or subletting relieve the CITY of its primary obligations to pay the Cash Rentals and operation and maintenance costs of the Project and the Site hereunder or perform any of its other obligations hereunder 18 The CITY shall have, and is hereby granted, the right to require the AUTHORITY to release from the terms and restrictions hereof any part of the Site, or any interest therein, at any time and from time to time while the CITY is not in default hereunder, without cost to the CITY, provided that the CITY furnishes the AUTHORITY with (a) A notice, in writing, containing an adequate legal description of that portion of the Site with respect to which such right is to be exercised, together with a survey thereof, and (b) A certificate signed by an engineer or architect stating (i) that no part of the improvements constituting the Project (other than sewer, water, gas, electric and communication lines and other utilities, and the like, which shall be specified in such certificate) is located on the portion of the Site with respect to which such right is exercised, and (ii) that the severance of such portion of the Site will not impair the operating utility or materially alter the character of the Project or the balance of the Site From and after the consummation of any release effected by the CITY pursuant to the provisions of this Section, any reference herein to the Site shall be deemed to refer to the real property described herein, and the buildings and improvements thereon, less and except any portion or interest therein released to the CITY under this Section and any part theretofore released to the CITY under this Section No release effected by the CITY under the provisions of this Section shall entitle the CITY to any abatement or diminution of the Cash Rentals or other obligations payable hereunder 19 The AUTHORITY, its agents, servants or employees shall have the right at all times of entering upon the Project and the Site for the purpose of acquiring, constructing and inspecting the same pursuant to its commitments hereunder and determine whether all of the terms, agreements, covenants and conditions herein contained are being complied with 20 The CITY covenants and agrees that it will continue to pay to the AUTHORITY, in accordance with the terms of this Contract, the Cash Rentals and the operation and maintenance costs of the Project and the Site at the times and in the manner herein established without reduction or abatement for any cause or reason whatsoever, including, but not limited to, casualty which results in the Project or the Site being untenantable or the failure to have the Project restored under Section 16 hereof, and without right of setoff or recoupment, until the principal of and interest on all Bonds are paid in full or adequate funds are available and held in trust for the benefit of the holders of the Bonds for that purpose 21 The CITY covenants and agrees that if before the Bonds have been retired default shall at any time be made by the CITY in payments of Cash Rentals or operation and maintenance costs as herein required or in the performance of any of its obligations hereunder, 30793 the AUTHORITY shall have the right to use all the remedies provided by law to correct said default, including those specifically set forth in the Act and the ordinance or resolution to be enacted by the AUTHORITY providing for the issuance of the Bonds In the event of any such default, the holder or holders of the Bonds may, to the extent permitted by law, exercise and enforce the rights of the AUTHORITY hereunder 22 The AUTHORITY and the CITY each recognize that the Bonds are to be issued in anticipation of the Cash Rentals to be paid by the CITY hereunder and that the holders from time to time of the Bonds will have contractual rights in this Contract, and it is, therefore, covenanted and agreed by each of them that so long as any of the Bonds shall remain outstanding and unpaid the provisions of this Contract shall not be subject to any alteration or revision which would in any manner unfavorably affect either the security of the Bonds or the prompt payment of principal or interest thereon. The AUTHORITY and the CITY further covenant and agree that they will each comply with their respective duties and obligations under the terms of this Contract promptly at the times and in the manner herein set forth and will not suffer to be done any act which would in any way impair the Bonds, the security therefor, or the prompt payment of principal and interest thereon. The CITY may, in writing, waive strict compliance by the AUTHORITY with the dates set out herein for the entering into of final construction contracts and for completion of the Project, and such dates may be altered upon mutual agreement by the parties hereto 23 Any notice necessary or proper to be given to any of the parties hereto may be served in the following manner (a) If to the AUTHORITY, by delivering the same to any member of the Commission thereof, (b) If to the CITY, by delivering the same to the Mayor or the Finance Director 24 This Contract shall terminate on the payment in full of all principal and interest on all the Bonds When the Bonds have been retired and the Contract terminated, the AUTHORITY shall convey the Project and the Site to the CITY, without consideration, by quit claim deed and appropriate bills of sale in such form and manner as may be approved by the Attorney of the CITY Upon termination of this Contract in the manner set forth above, the AUTHORITY shall promptly pay over to the CITY any and all funds held by it pertaining to the aforesaid Bonds or in any other manner relating to the Project 25 The AUTHORITY covenants that the CITY upon compliance with the terms of this Contract, shall and may peacefully and quietly have and hold and enjoy the Project and the Sites for the term herein provided. 26 The AUTHORITY and the CITY both designate the Bonds as "qualified tax exempt obligations" for purposes of deduction of interest expense by financial institutions pursuant to the Internal Revenue Code of 1986, as amended 30794 27 Nothing herein contained shall in any way be construed to prevent additional financing under the provisions of the Act, or any other law, for any of the purposes set out in the Articles of Incorporation of the AUTHORITY tor 28 This Contract shall inure to the benefit of and be binding upon the respective parties hereto, their successors and assigns IN WITNESS WHEREOF, the MUNICIPAL BUILDING AUTHORITY OF LIVONIA, by its Commission, and the CITY OF LIVONIA, by its City Council, have each caused its name to be signed to this instrument by its duly authorized officers and its seal to be affixed hereto the day and year first above written. MUNICIPAL BUILDING AUTHORITY OF LIVONIA By Its Chairman By Its Secretary (Seal) CITY OF LIVONIA By Its Mayor By Its City Clerk (Seal) STATE OF MICHIGAN ) ss 30795 COUNTY OF WAYNE ) On this day of , 1998, before me appeared and , to me personally known, who being by me duly sworn, did, each for himself or herself, say that they are respectively, the Chairman and Secretary of the Commission of the MUNICIPAL BUILDING AUTHORITY OF LIVONIA, a public corporation of the State of Michigan, and that said instrument was signed and sealed in behalf of said AUTHORITY by authority of its Commission, and the said persons acknowledged said instrument to be the free act and deed of said AUTHORITY. Notary Public, Wayne County, Michigan My Commission Expires. STATE OF MICHIGAN ) ss COUNTY OF WAYNE ) On this day of , 1998, before me appeared Jack Kirksey and Joan McCotter, to me personally known, who being by me duly sworn, did, each for himself or herself, say that they are, respectively, the Mayor and the City Clerk of the CITY OF LIVONIA, a Michigan municipal corporation, and that said instrument was signed and sealed in behalf of said City by authority of its City Council, and the said persons acknowledged said instrument to be the free act and deed of said City Notary Public, Wayne County, Michigan My Commission Expires. 30796 On a motion by Brosnan, seconded by Pastor, and unanimously adopted, it was #153-98 WHEREAS, this City Council by Ordinance has approved a Tax Increment Financing and Development Plan (the "Plan") for the Development Area ("Development Area") of the Plymouth Road Development Authority (the "DDA") pursuant to Act 197, Public Acts of Michigan, 1975, as amended (the "Act"), and WHEREAS, the DDA has advised the City that the DDA anticipates that it will have available the projected tax increment revenues set forth on Exhibit A thereto, and WHEREAS, the DDA has requested the City to issue its limited tax general obligation bonds to finance the cost of certain improvements within the Development Area as more fully described in the Plan (the "Project"), and WHEREAS, this City Council determines that it is necessary and appropriate at this time to issue a series of limited tax general obligation bonds pursuant to Section 16 of the Act to finance the cost of the Project; and WHEREAS, it is the determination of the City Council that at this time limited tax general obligation bonds in the principal amount of Seven Million Five Hundred Thousand Dollars ($7,500,000) should be issued for the purpose of paying the cost of the Project. NOW, THEREFORE, BE IT RESOLVED THAT 1 The DDA has estimated that the estimated tax increment revenues of the Development Area will be as shown on Exhibit A attached hereto and by this reference made a part hereof, which estimate is hereby approved and adopted by this City Council 2 Bonds of the City designated 1998 DOWNTOWN DEVELOPMENT BONDS (LIMITED TAX GENERAL OBLIGATION) (the "Bonds") are authorized to be issued in the aggregate principal sum of Seven Million Five Hundred Thousand Dollars ($7,500,000) for the purpose of paying the costs of the Project and the costs incidental to the issuance, sale and delivery of the Bonds The issue shall consist of Bonds in fully-registered form in the denomination of $5,000 each, or multiples thereof not exceeding for each maturity the maximum principal amount of that maturity, numbered in order of registration, dated as of May 1, 1998, bear interest at a rate not to exceed nine percent (9%), and mature in the principal amounts and be payable as to principal and interest at the times and in the 30797 manner set forth in Sections 7 and 8 hereof The Bonds shall be subject to redemption prior to maturity in the manner set forth in Sections 7 and 8 hereof The Bonds may be sold to the initial purchaser at a price of not less than 99% of par Interest shall be payable to the registered owner of record as of the 15th day of the month preceding each interest payment date The record date of determination of registered owner for purposes of payment of interest as provided in this paragraph may be changed by the City to conform to market practice in the future Interest shall be payable by check or draft drawn on the Transfer Agent (as hereinafter defined) mailed to the registered owner at the registered address, as shown on the registration books of the City maintained by the Transfer Agent. The principal of the Bonds shall be payable upon presentation and surrender to the Transfer Agent. First Trust National Association, Detroit, Michigan, is hereby designated to act as the bond registrar, paying agent and transfer agent (the "Transfer Agent") for this issue The City reserves the right to replace the Transfer Agent at any time upon written notice to the registered owners of record of the Bonds not less than sixty (60) days prior to an interest payment date 3 The Bonds of this issue shall be executed in the name of the City with the manual or facsimile signatures of the Mayor and countersigned by the manual or facsimile signatures of the City Clerk and Treasurer and shall have the seal of the City, or a facsimile thereof, printed or impressed on the Bonds No Bond shall be valid until authenticated by an authorized officer or representative of the Transfer Agent. The Bonds shall be delivered to the Transfer Agent for authentication and be delivered by the Transfer Agent to the purchaser or other person in accordance with instructions from the Finance Director upon payment of the purchase price for the Bonds in accordance with the bid therefor when accepted 4 The Bonds shall be issued in book-entry only form as one fully registered bond per maturity and shall be registered in the name of Cede & Co , as bondholder and nominee for The Depository Trust Company ("DTC"), New York, New York. DTC will act as securities depository for the Bonds, and purchasers will not receive certificates representing their interest in bonds purchased. If the Bonds are issued in book-entry only form, provisions in this resolution to the contrary shall be of no force nor effect unless and until the suspension of the book-entry only system The Finance Director is authorized to make such changes in the form of the bonds and in the notice of sale therefor as shall be necessary or convenient to enable the Bonds to be issued in book-entry only 30798 form, and to execute such documents as may be required to enable the Bonds to be so issued Any Bond may be transferred upon the books required to be kept pursuant to this section by the person in whose name it is registered, in person or by the registered owner's duly authorized attorney, upon surrender of the Bond for cancellation, accompanied by delivery of a duly executed written instrument of transfer in a form approved by the transfer agent. Whenever any Bond or Bonds shall be surrendered for transfer, the City shall execute and the transfer agent shall authenticate and deliver a new Bond or Bonds, in like aggregate principal amount. The transfer agent shall require the payment by the bondholder requesting the transfer of any tax or other governmental charge required to be paid with respect to the transfer The date of determination of the registered owner for purposes of payment of interest as provided in this resolution may be changed by the City to conform to market practice in the future The principal of the Bonds shall be payable at the office of the transfer agent designated by the transfer agent. 5 The Bonds shall be issued in anticipation of and payable in the first instance from payments required to be made by the DDA from tax increment revenues (the "Tax Increment Revenue Payments") pursuant to the Plan and a resolution adopted by the DDA (the "DDA Resolution") In addition, the City hereby pledges its full faith and credit for the prompt payment of the Bonds Should the Tax Increment Revenue Payments at any time be insufficient to pay principal of and interest on the Bonds as the same become due, then the City shall advance as a first budget obligation from its general funds available therefor, or, if necessary, levy taxes upon all taxable property in the City subject to applicable constitutional, statutory and charter tax rate limitations, such sums as may be necessary to pay said principal and interest. The City shall be reimbursed for any such advance by the DDA from tax increment revenues or other revenues of the DDA. The Finance Director is authorized and directed to open a separate depositary account with a bank or trust company designated by the City Council to be known as 1998 DOWNTOWN DEVELOPMENT BONDS DEBT RETIREMENT FUND (the "Debt Retirement Fund"), the moneys to be deposited into the Debt Retirement Fund to be specifically earmarked and used solely for the purpose of paying principal of and interest on the Bonds as they mature Into said fund there shall be placed the accrued interest and premium, if any, received at the time of delivery of the Bonds In addition, there shall be paid into the Debt Retirement Fund the Tax Increment Revenue Payments or other revenues as received from the DDA. 30799 The City reserves the right to issue additional bonds of equal standing with the Bonds as to the tax increment revenues to the extent permitted by law 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, shall be deposited in trust, this resolution shall be defeased 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 the Bonds from the cash or securities deposited in trust and the interest and gains thereon and to transfer and exchange Bonds as provided herein. 6 The accrued interest and premium, if any, received upon sale of the Bonds, shall be deposited in the Debt Retirement Fund and the balance of the proceeds shall be deposited in a Construction Fund which shall be established by the City for the Project. Money in the Construction Fund shall be used by the City solely for payment of costs of the Project, or payment or redemption of the Bonds. 7 The Bonds shall be in substantially the following form UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF WAYNE CITY OF LIVONIA 1998 DOWNTOWN DEVELOPMENT BOND (LIMITED TAX GENERAL OBLIGATION) Date of Interest Rate Maturity Date Original Issue CUSIP May 1, May 1, 1998 Registered Owner Principal Amount: Dollars 30800 The CITY OF LIVONIA, County of Wayne, State of Michigan (the "City"), for value received, promises to pay to the Registered Owner specified above, or registered assigns, the Principal Amount specified above, in lawful money of the United States of America, on the Maturity Date specified above, unless prepaid prior thereto as hereinafter provided, with interest thereon from the Date of Original Issue specified above or such later date to which interest has been paid, until paid, at the Interest Rate per annum specified above, first payable on November 1, 1998 and semiannually thereafter Principal of this bond is payable upon presentation and surrender of this bond at the designated corporate trust office of First Trust National Association, Detroit, Michigan, or such other transfer agent as the City may hereafter designate by notice mailed to the registered owner not less than sixty (60) days prior to any interest payment date (the "Transfer Agent") Interest on this bond is payable to the person or entity which is the registered owner of record as of the fifteenth (15th) day of the month preceding the interest payment date as shown on the registration books of the City kept by the Transfer Agent, by check or draft mailed by the Transfer Agent to the registered owner of record at the registered address Principal of and interest on this bond are payable in the first instance from tax increment revenues to be received by the City from the Plymouth Road Development Authority (the "Authority") In addition, for prompt payment of this bond, both principal and interest, the full faith, credit and resources of the City are hereby irrevocably pledged. In case of insufficiency of revenues received from the Authority for the payment of the principal of and interest on this bond, the City is obligated to pay the same as a first budget obligation from its general funds or from any taxes which it may levy within applicable constitutional, statutory or charter tax rate limitations This bond is one of a series of bonds of even Date of Original Issue aggregating the principal sum of $7,500,000, issued pursuant to Act 197, Public Acts of Michigan, 1975, as amended, and a resolution duly adopted by the City Council of the City, for the purpose of defraying the cost of certain public improvements in the Development Area in the City as described in the Development Plan and Tax Increment Financing Plan of the Authority The City and the Authority have reserved the right to issue additional bonds of equal standing and priority payable from tax increment revenues to the extent permitted by law Bonds of this issue maturing in years 1999 to 2007, inclusive, shall not be subject to redemption prior to maturity Bonds or $5,000 portions of bonds of this issue maturing in the years 2008 and thereafter, inclusive, shall be subject to redemption prior to maturity, at the option of the City, in such order of maturity as the City shall determine and within any maturity by lot, on any interest payment date on or after May 1, 2007, at par and accrued interest to the date fixed for redemption. [Insert term bond redemption, if applicable] 30801 Notice of redemption of any bond or portion thereof shall be given by the City at least thirty (30) days prior to the date fixed for redemption by mail to the registered owner at the registered address shown on the registration books kept by the Transfer Agent. Bonds shall be called for redemption in multiples of $5,000, and any bond of a denomination of more than $5,000 shall be treated as representing the number of bonds obtained by dividing the denomination of the bond by $5,000, and such bond may be redeemed in part. Notice of redemption for a bond redeemed in part shall state that upon surrender of the bond to be redeemed, a new bond or bonds in aggregate principal amount equal to the unredeemed portion of the bond surrendered shall be issued to the registered owner thereof No further interest on a bond or portion thereof called for redemption shall accrue after the date fixed for redemption, whether presented for redemption or not, provided funds are on hand with the Transfer Agent to redeem the bond or portion thereof This bond is transferable only upon the registration books of the City kept by the Transfer Agent by the registered owner of record in person, or by the registered owner's attorney duly authorized in writing, upon the surrender of this bond together with a written instrument of transfer satisfactory to the Transfer Agent duly executed by the registered owner or the registered owner's attorney duly authorized in writing, and thereupon a new registered bond or bonds in the same aggregate principal amount and of the same maturity shall be issued to the transferee in exchange therefor as provided in the resolution authorizing this bond, and upon the payment of the charges, if any, therein prescribed It is hereby certified and recited that all acts, conditions and things required by law to be done, precedent to and in the issuance of this bond and the series of bonds of which this is one, exist and have been done and performed in regular and due form and time as required by law, and that the total indebtedness of the City, including this bond and the series of bonds of which this is one, does not exceed any constitutional, statutory or charter debt limitation. This bond is not valid or obligatory for any purpose until the Transfer Agent's Certificate of Authentication on this bond has been executed by the Transfer Agent. IN WITNESS WHEREOF, the City of Livonia, County of Wayne, State of Michigan, by its City Council, has caused this bond to be signed in the name of the City by the facsimile signature of its Mayor and countersigned by the facsimile signatures of its Clerk and Treasurer and a facsimile of its corporate seal to be printed hereon, all as of the Date of Original Issue CITY OF LIVONIA County of Wayne State of Michigan By (facsimile] Mayor (SEAL) 30802 Countersigned f facsimile] City Clerk (facsimile] Treasurer (Form of Transfer Agent's Certificate of Authentication) DATE OF AUTHENTICATION CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the within-mentioned resolution. First Trust National Association, Detroit, Michigan, Transfer Agent By Authorized Representative [Bond printer to insert form of assignment] 30803 8 Upon receipt of an order of approval of the Bonds from the Michigan Department of Treasury, or an order excepting the Bonds from prior approval, the City Clerk shall cause to be published a notice of sale of the Bonds in the Bond Buyer, New York, New York, at least seven (7) full days before the date fixed for the sale of the Bonds, and shall be in substantially the following form. OFFICIAL NOTICE OF SALE $7,500,000 CITY OF LIVONIA COUNTY OF WAYNE, STATE OF MICHIGAN 1998 DOWNTOWN DEVELOPMENT BONDS (LIMITED TAX GENERAL OBLIGATION) SEALED BIDS for the purchase of the above bonds will be received by the undersigned at the City Clerk's office in the City Hall, located at 33000 Civic Center Drive, Livonia, Michigan 48154, on Wednesday, the 22nd day of April, 1998, until 4 00 o'clock p m., Eastern Standard Time, at which time and place said bids will be publicly opened and read. Sealed bids will also be received on the same date and until the same time by an agent of the undersigned at the office of Municipal Advisory Council of Michigan, 1445 First National Building, Detroit, Michigan, 48226 when, simultaneously, the bids will be opened and read. The City Council will meet at 8 00 p m., on that date at the City Hall, to consider the award or rejection of bids BOND DETAILS Said bonds will be registered bonds of the denomination of $5,000 or multiples thereof not exceeding for each maturity the maximum principal amount of that maturity, originally dated as of May 1, 1998, numbered in order of registration, and will bear interest from their date payable on NQ' ember 1, 1998, and semiannually thereafter The bonds will mature on the 1st day of May of each of the years, as follows Year Amount Year Amount Year Amount 1999 $210,000 2006 $310,000 2013 $460,000 2000 225,000 2007 330,000 2014 485,000 2001 235,000 2008. 350,000 2015 510,000 2002 250,000 2009 365,000 2016 540,000 2003 265,000 2010 390,000 2017 570,000 2004 280,000 2011 410,000 2018 585,000 2005 295,000 2012 435,000 30804 PRIOR REDEMPTION Bonds of this issue maturing in the years 1999 through 2007, inclusive, shall not be subject to redemption prior to maturity Bonds or $5,000 portions thereof maturing in the years 2008 and thereafter shall be subject to optional redemption prior to maturity, at the option of the City, in such order of maturity as the City shall determine and within any maturity by lot, on any interest payment date on or after May 1, 2007 at par and accrued interest to the date fixed for redemption In case less than the full amount of an outstanding bond is called for redemption the transfer agent, upon presentation of the bond called in part for redemption shall register, authenticate and deliver to the registered owner a new bond in the principal amount of the portion of the original bond not called for redemption Notice of redemption shall be given to the holders of bonds to be redeemed by mailing of such notice not less than thirty (30) days prior to the date fixed for redemption to the registered owners at the address of the registered owners as shown on the registration books of the City No further interest on bonds called for redemption shall accrue after the date fixed for redemption, whether presented for redemption or not, provided the City has money available for such redemption TERM BOND OPTION The initial purchaser of the bonds may designate any one or more maturities from May 1, 2009 through 2018, inclusive, as term bonds and the consecutive maturities on or after the year 2009 which shall be aggregated in the term bonds The amounts of the maturities which are aggregated in a designated term bond shall be subject to mandatory redemption on May 1 of the years and in the amounts set forth in the above maturity schedule at a redemption price of par, plus accrued interest to the date of mandatory redemption. Term bonds or portions thereof mandatorily redeemed shall be selected by lot Any such designation must be made at the times bids are submitted and must be listed on the bid INTEREST RATE AND BIDDING DETAILS The bonds shall bear interest at a rate or rates not exceeding 7% per annum, to be fixed by the bids therefor, expressed in multiples of 1/8 or 1/20 of 1%, or both. The interest on any one bond shall be at one rate only and all bonds maturing in any one year must carry the same interest rate The difference between the highest and lowest interest rates bid shall not exceed 2% THE INTEREST RATE FOR EACH SERIAL OR TERM BOND MATURITY SHALL BE EQUAL TO OR GREATER THAN THE INTEREST RATE FOR THE PRECEDING SERIAL OR TERM BOND MATURITY No proposal for the purchase of less than all of the bonds or at a price less than 99% of their par value will be considered BOOK-ENTRY ONLY The bonds will be issued in book-entry only form as one fully registered bond per maturity and will be registered in the name of Cede & Co , as bondholder and nominee for The Depository Trust Company ("DTC"), New York, New York DTC will act as securities depository for the bonds Purchase of the bonds will be made in book-entry- only form, in the denomination of$5,000 or any multiple thereof Purchasers will not receive certificates representing their interest in bonds purchased The book-entry only system is described further in the Preliminary Official Statement for the bonds 30805 TRANSFER AGENT AND REGISTRATION Principal and interest shall be payable at the corporate trust office of First Trust National Association, Detroit, Michigan, or such other transfer agent as the City may hereafter designate by notice mailed to the registered owner of record not less than 60 days prior to an interest payment date Interest shall be paid by check or draft mailed to the registered owner of record as shown on the registration books kept by the transfer agent as of the 15th day of the month prior to an interest payment date The bonds will be transferred only upon the registration books of the City kept by the transfer agent PURPOSE AND SECURITY The bonds are issued pursuant to Act 197, Public Acts of Michigan, 1975, as amended, in anticipation of the collection of certain tax increment revenue payments from the Plymouth Road Development Authority (the "Authority") to the City for the purpose of paying the cost of certain public improvements within the Development Area of the Authority The bonds will pledge the full faith and credit of the City as additional security for payment of the principal and interest thereon, and pursuant to such pledge, should the tax increment revenue payments primarily pledged be insufficient for payment, the City is obligated to make such payment as a first budget obligation from general funds or from any taxes which it may levy within applicable constitutional, statutory and charter tax rate limitations The City and the Authority have reserved the right to issue additional bonds of equal standing and priority as to the tax increment revenues to the extent permitted by law The rights or remedies of bondholders may be affected by bankruptcy, insolvency, fraudulent conveyance or other laws affecting creditors' rights generally, now existing or hereafter enacted, and by the application of general principles of equity including those relating to equitable subordination. MICHIGAN PROPERTY TAX REFORM Prospective purchasers of the Bonds offered herein are referred to the Preliminary Official Statement for the Bonds provided by the City's Financial Advisor for information concerning the above matters GOOD FAITH A certified or cashier's check drawn upon an incorporated bank or trust company or a Financial Surety bond, in the amount of $75,000 and payable to the order of the Treasurer of the City is required for each bid as a guarantee of good faith on the part of the bidder, to be forfeited as a portion of the City's damages if such bid be accepted and the bidder fails to take up and pay for the bonds If a check is used, it must accompany each bid If a Financial Surety Bond is sued, it must be from an insurance company licensed to issue such a bond in the State of Michigan and such Bond must be submitted to the City's Municipal Advisory Council of Michigan at least one hour prior to the opening of the bids The Financial Surety Bond must identify each bidder whose good faith deposit is guaranteed by such Financial Surety Bond If the bonds are awarded to a bidder utilizing a Financial Surety Bond, then that purchaser (the "Purchaser") is required to submit its good faith deposit to the City in the form of a cashier's check (or wire transfer such amount as instructed by the City in the form of a cashier's check not later than Noon, Eastern Daylight Time, on the next business day following the award If such good faith deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the good faith deposit requirement The good faith deposit will be applied to the purchase price of the bonds In the event the Purchaser fails to honor its accepted bid, the good faith deposit will be retained by the City No interest shall be allowed on the good faith check and checks of the unsuccessful bidders will be returned to each bidder's representative or by overnight delivery The good faith check of the successful bidder will be cashed and payment for the balance of the purchase price of the bonds shall be made at the closing 30806 AWARD OF BONDS The bonds will be awarded to the bidder whose bid produces the lowest interest cost computed by determining, at the rate or rates specified in the bid, the total dollar value of all interest on the bonds from May 1, 1998, to their maturity and deducting therefrom any premium or adding thereto any discount asp TAX MATTERS In the opinion of bond counsel, assuming compliance with certain covenants, interest on the bonds is excluded from gross income for federal income tax purposes, as described in the opinion, and the bonds and interest thereon are exempt from all taxation in the State of Michigan except inheritance and estate taxes and taxes on gains realized from the sale, payment or other disposition thereof The successful bidder will be required to furnish, prior to the delivery of the bonds, a certificate in a form acceptable to bond counsel as to the "issue price" of the bonds within the meaning of Section 1273 of the Internal Revenue Code of 1986, as amended "QUALIFIED TAX EXEMPT OBLIGATIONS" The City has designated the bonds as "qualified tax exempt obligations" for purposes of deduction of interest expense by financial institutions LEGAL OPINION Bids shall be conditioned upon the approving opinion of Miller, Canfield, Paddock and Stone, P L.0 , attorneys of Detroit, Michigan, a copy of which opinion will be printed on the reverse side of each bond and the original of which will be furnished without expense to the purchaser of the bonds at the delivery thereof The fees of Miller, Canfield, Paddock and Stone, P L.0 , for services rendered in connection with such approving opinion are expected to be paid from bond proceeds DELIVERY OF BONDS The City will furnish bonds ready for execution at its expense Bonds will be delivered without expense to the purchaser at New York, New York, or such other place to be agreed upon. The usual closing documents, including a certificate that no litigation is pending affecting the issuance of the bonds, will be delivered at the time of delivery of the bonds If the bonds are not tendered for delivery by twelve o'clock noon, prevailing Eastern Time, on the 45th day following the date of sale, or the first business day thereafter if said 45th day is not a business day, the successful bidder may on that day, or any time thereafter until delivery of the bonds, withdraw his proposal by serving notice of cancellation, in writing, on the undersigned in which event the City Treasurer shall promptly return the good faith deposit. Payment for the bonds shall be made in Federal Reserve Funds Accrued interest to the date of delivery of the bonds shall be paid by the purchaser at the time of delivery CUSIP NUMBERS It is anticipated that CUSIP identification numbers will be printed on the bonds, but neither the failure to print such numbers on any bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the bonds in accordance with terms of the purchase contract All expenses in relation to the printing of CUSIP numbers on the bonds shall be paid for by the City, except that the CUSIP Service Bureau charge for the assignment of such numbers shall be the responsibility of and shall be paid for by the purchaser 30807 OFFICIAL STATEMENT A preliminary official statement which the City deems to be final as of its date, except for the omission of information permitted to be omitted by Rule 15c2-12 of the Securities and Exchange Commission, has been prepared and may be obtained from Stauder, Barch & Associates, Inc , financial consultant to the City, at the address listed under FINANCIAL CONSULTANT below The City will furnish, upon request of the successful rr bidder, copies of the final Official Statement relating to the above described issue within seven days from the date of sale specified above, in sufficient amounts to permit the successful bidder to comply with Rule 15c2-12 of the Securities and Exchange Commission The first 250 copies will be delivered at the expense of the City Additional copies will be supplied upon the bidders's agreement to pay the reasonable copying charges of the City for those copies Any such request for additional copies should be made to Stauder, Barch & Associates, Inc , within 24 hours of the date and time of the sale, and should set forth the number of copies requested and the person and place to whom the final Official Statements should be delivered BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the bidder/purchaser, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds Any increased costs of issuance of the Bonds resulting from such purchaser of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay the fee for the requested rating Any other rating agency fees shall be the responsibility of the purchaser FAILURE OF THE MUNICIPAL BOND INSURER TO ISSUE THE POLICY AFTER THE BONDS HAVE BEEN AWARDED TO THE PURCHASER SHALL NOT CONSTITUTE CAUSE FOR FAILURE OR REFUSAL BY THE PURCHASER TO ACCEPT DELIVERY OF THE BONDS FROM THE CITY CONTINUING DISCLOSURE The City will agree in the resolution awarding the bonds to the winning bidder to provide or cause to be provided, in accordance with the requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission, on or prior to the last day of the sixth month after the end of the fiscal year of the City commencing with the fiscal year ended November 30, 1997, (i) certain annual financial information and operating data, including audited financial statements for the ;preceding fiscal year, generally consistent with the information contained or cross-referenced in the Official Statement relating to the bonds, (ii) timely notice of the occurrence of certain material events with respect to the bonds and (iii) timely notice of a failure by the City to provide the required annual financial information on or before the date specified in (i) above FINANCIAL CONSULTANT Additional information may be obtained from Stauder, Barch & Associates, Inc , 3989 Research Park Drive, Ann Arbor, Michigan 48108 Telephone. (734) 668-6688, Facsimile (734) 668-6723 THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS 30808 ENVELOPES containing the bids should be plainly marked "Proposal for 1998 Downtown Development Bonds " Joan McCotter City Clerk City of. Livonia 9 The estimated period of usefulness of the proposed Project is hereby declared to be not less than twenty (20) years and its total cost is estimated to be not less than Seven Million Five Hundred Thousand Dollars ($7,500,000) 10. The City agrees, to the extent permitted by law, to take all actions within its control necessary to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended, including but not limited to actions relating to the rebate of arbitrage earnings and the expenditure and investment of Bond proceeds and money deemed to be Bond proceeds 11 The City Council hereby expressly approves obtaining and using funds derived from the proceeds of the Bonds to finance the activities of the DDA as described in the Plan 12 The City hereby designates the Bonds as "qualified tax exempt obligations" for purposes of the deduction of interest expense by financial institutions 13 The Mayor, City Clerk and Finance Director are each hereby authorized to cause the preparation and circulation of a preliminary and final Official Statement with respect to the Bonds, to procure a policy of municipal bond insurance with respect to the Bonds or cause the qualification of the Bonds therefor if, upon the advice of the financial advisor to the City, the acquisition of such insurance would be of economic benefit to the City; to obtain ratings on the Bonds; and to take all other actions necessary or advisable, and to make such other filings with the Michigan Department of Treasury or with other parties, to enable the sale and delivery of the Bonds. 14 The City hereby approves the retention of Miller, Canfield, Paddock and Stone, P L.0 as bond counsel and Stauder, Barch & Associates, Inc. as financial advisor to the City 15 All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded 30809 EXHIBIT A Estimated Tax Increment Revenues Tax Tax Increment Year Revenues 1997 $1,139,808 1998 1,267,078 1999 1,395,621 2000 1,525,449 2001 1,656,575 2002 1,789,013 2003 1,922,775 2004 2,057,875 2005 2,194,325 2006 2,332,140 2007 2,471,334 2008 2,611,919 2009 2,753,910 2012 2,897,321 2013 3,042,166 2014 3,188,459 2015 4 3,336,216 2016 3,788,410 2017 3,942,166 The estimated tax increment revenues are derived from the estimates set forth in the Tax Increment Financing Plan of the Plymouth Road Development Authority. 4- 1 lbw 30810 A communication from Twin Valley Corp , dated February 22, 1998, re request for waiver of sidewalks at 31785 and 31789 Norfolk was received and placed on file for the information of the Council On a motion by Brosnan, seconded by Duggan, and unanimously adopted, it was #154-98 RESOLVED, that having considered a communication from the City Engineer, dated January 28, 1998, approved by the Director of Public Works and approved for submission by the Mayor, to which is attached a letter from Steven J Summers, Twin Valley Corporation, dated November 7, 1997, requesting elimination of the sidewalk requirement with respect to two new homes being constructed at 31785 and 31789 Norfolk, the Council does hereby approve this request inasmuch as omitting the sidewalks on the subject properties would have no detrimental effect upon the neighboring properties at this time due to general lack of public sidewalks existing on the south side of Norfolk in this area; FURTHER, the Council does hereby reserve the right to require sidewalks at this location in the event that additional sidewalks are installed in this area at some future date, FURTHER, the approval granted herein is conditioned upon written confirmation to be submitted by Twin Valley Corporation that it will pay for any sidewalks installed at this location if same are required by the City in the future Duggan left the podium at 9.07 p m due to a conflict of interest regarding the next Agenda item On a motion by Laura, seconded by Brosnan, it was. #155-98 RESOLVED, that having considered a communication from the City Clerk, dated January 29, 1998, which indicates that the proprietor of Kenwood Estates Subdivision, situated on the west side of Sunset Boulevard between Fargo Avenue and Morlock Street in the Northwest 1/4 of Section 2, has delivered final true plats to the City Clerk and requested that said plat be presented to Council for final approval, and the Council having received a communication from the City Planning Commission, dated January 28, 1998, wherein said Commission approved the final plat for the said subdivision in its resolution 1-11-98, adopted on January 27, 1998, and the Council having considered a report from the City Engineer, dated January 19, 1998, recommending approval of the final plat of said subdivision, the preliminary plat of which was approved by the Council in its resolution 968-97, adopted on November 19, 1997, said preliminary plat having been recommended for approval by the City Planning Commission on July 22, 1997, in its resolution 7-120-97, NOW, THEREFORE, the Council does hereby 30811 determine to grant its approval to the final plat of Kenwood Estates Subdivision, located in the Northwest 1/4 of Section 2, City of Livonia, Wayne County, Michigan, as submitted by the proprietor thereof, which proprietor is also hereby required to do all things necessary to obtain full compliance with the Subdivision Control Act of Michigan of 1967, as amended, and the ordinances of the City of Livonia, and FURTHER, the City Clerk is hereby requested to do all things necessary or incidental to the full performance of this resolution. A roll call vote was taken on the foregoing resolution with the following result: AYES Walsh, Vandersloot, Pastor, Laura, Brosnan, and Engebretson. NAYS. None. The President declared the resolution adopted. Duggan returned to the podium at 9.08 p m. A communication from the Engineering Division, dated February 17, 1998, re: forwarding a new estimated cost and distribution of cost sheet and an additional proposed roll for an Alternate 11 improvement for Ashurst Road, north of Five Mile Road in the Southeast and Southwest 114s of Section 16, was received and placed on file for the information of the Council A communication from the Engineering Division, dated February 23, 1998, re. forwarding the results of a second survey on preferred pavement type sent to the owners in the proposed special assessment district for Ashurst, north of Five Mile Road in the Southeast and Southwest 1/4s of Section 16, was received and placed on file for the information of the Council. On a motion by Duggan, seconded by Vandersloot, and unanimously adopted, it was: #156-98 RESOLVED, that the City Engineer having filed with the City Clerk a statement dated February 17, 1998, on all matters required by Section 3.08.060 of the Livonia Code of Ordinances, as amended, and a first public hearing having been held thereon on February 9, 1998, after due notice as required by Section 3 08.070 of said Code, and after careful 30812 consideration having been given to all such matters, the Council does hereby, pursuant to Section 3 08 080 of said Code ( 1) accept and approve said statement in all respects, ( 2) determine to make the road improvement consisting of a 31 ft. wide full-depth asphalt pavement (approximately 7-1/2" thick) with concrete curbs and gutters (Alternate II) for Ashurst Road, north of Five Mile Road, in the Southeast and Southwest 1/4 of Section 16, T 1 S , R. 9 E., City of Livonia, Wayne County, Michigan, as described in said statement; and to defray the cost of such improvement by special assessment upon the property especially benefited in proportion to the benefits derived or to be derived, ( 3) approve the plans and specifications for said improvement as set forth in said statement dated February 17, 1998; ( 4) determine that the estimated cost of such improvement is $152,641 53, ( 5) determine that the cost of said improvement shall be paid for in part by special assessments on the property benefited thereby and in part by the City at large, in proportions thereafter established; ( 6) that the proportion of the cost and expense of said improvement to be borne and paid by the City shall be 15% of paving ($15,996.23) and 100% of drainage ($46,000 00) and that the balance of said cost and expense of said public improvement amounting to 85% ($90,645 30) shall be borne and paid by special assessments on all lands and premises in the special assessment district as herein established in.proportion to the benefits to be derived therefrom; ( 7) determine that assessments made for such improvement may be paid in fifteen (15) annual installments together with interest thereon on the unpaid balance, ( 8) designate the assessment district, describing the land and premises upon which special assessments shall be levied as follows. A Special Assessment District in the S E. and S W 1/4s of Section 16, T 1 S , R. 9 E., City of Livonia, Wayne County, Michigan, described as containing the property listed on the attached Special Assessment Roll and shown on the attached Special Assessment District Map ( 9) that the City Assessor is hereby directed to prepare a special assessment roll including all lots and parcels of land within the 30813 above district designated by the Council and to assess to each such lot or parcel of land such relative portions of the whole sum to be levied against all lands in the special assessment district as the special benefits to such lots or parcels of land bear to the total benefit of all land and also to enter upon such roll the amount which has been assessed to the City at large, all in accordance with the determination of the City Council, and (10) that upon the completion of said roll the City Assessor shall attach thereto the certificate required by the provisions of Section 3 08.100 of the Livonia Code of Ordinances, as amended, of the City of Livonia and file the same with the City Clerk who thereupon is directed to present the same to the City Council prior to the holding of the second public hearing thereon as required by Section 3 08.110 of the said Code. On a motion by Duggan, seconded by Vandersloot, and unanimously adopted, it was #157-98 RESOLVED, that the City Engineer having filed with the City Clerk a statement dated December 29, 1997, on all matters required by Section 3 08 060 of the Livonia Code of Ordinances, as amended, and a first public hearing having been held thereon on February 18, 1998, after due notice as required by Section 3 08 070 of said Code, and after careful consideration having been given to all such matters, the Council does hereby, pursuant to Section 3 08 080 of said Code ( 1) accept and approve said statement in all respects; ( 2) determine to.make the road improvement consisting of the placement of three inch (3") thick asphalt surface on eight inch (8") aggregate base with concrete curbs and gutters or thickened edge sidewalk and improved storm drain (Alternate II Modified) for the parking area in front of the Kingston Terrace Condominiums located on the west side of Middlebelt Road between Orangelawn and Robert Drive, in the Northeast 1/4 of Section 35, T 1 S , R. 9 E., City of Livonia, Wayne County, Michigan, as described in said statement; and to defray the cost of such improvement by special assessment upon the property especially benefited in proportion to the benefits derived or to be derived; ( 3) approve the plans and specifications for said improvement as set forth in said statement dated December 29, 1997, ( 4) determine that the estimated cost of such improvement is $82,770 00; 30814 ( 5) determine that the cost of said improvement shall be paid for in part by special assessments on the property benefited thereby and in part by the City at large, in proportions thereafter established; ( 6) that the proportion of the cost and expense of said improvement to be borne and paid by the City shall be 100% of drainage ($17,250 00) and that the balance of said cost and expense of said public improvement amounting to 100% ($65,520 00) shall be borne and paid by special assessments on all lands and premises in the special assessment district as herein established in proportion to the benefits to be derived therefrom, ( 7) determine that assessments made for such improvement may be paid in fifteen (15) annual installments together with interest thereon on the unpaid balance, ( 8) designate the assessment district, describing the land and premises upon which special assessments shall be levied as follows. A Special Assessment District in the N E. 1/4 of Section 35, T 1 S , R. 9 E., City of Livonia, Wayne County, Michigan described as containing the property listed on the attached Special Assessment Roll and shown on the attached Special Assessment District Map. ( 9) that the City Assessor is hereby directed to prepare a special assessment roll including all lots and parcels of land within the above district designated by the Council and to assess to each such lot or parcel of land such relative portions of the whole sum to be levied against all lands in the special assessment district as the special benefits to such lots or parcels of land bear to the total benefit of all land and also to enter upon such roll the amount which has been assessed to the City at large, all in accordance with the determination of the City Council, and (10) that upon the completion of said roll the City Assessor shall attach thereto the certificate required by the provisions of Section 3 08 100 of the Livonia Code of Ordinances, as amended, of the City of Livonia and file the same with the City Clerk who thereupon is directed to present the same to the City Council prior to the holding of the second public hearing thereon as required by Section 3 08 110 of the said Code On a motion by Brosnan, seconded by Pastor, and unanimously adopted, It was: 30815 #158-98 RESOLVED, that having considered a communication from the City Librarian, dated February 4, 1998, which bears the signature of the Director of Finance and is approved for submission by the Mayor, the Council does, for and on behalf of the City of Livonia, accept various gifts and cash donations, in the total amount of $765 00, from the sources indicated therein for use by the Livonia Public Library as indicated in the aforesaid communication, FURTHER, the Council does hereby appropriate and credit the amount of$765 00 to Account No 702-000- 285-271 for the purpose as designated by the donors On a motion by Brosnan, seconded by Walsh, and unanimously adopted, it was. #159-98 RESOLVED, that having considered a communication from the Department of Law, dated February 2, 1998, transmitting for Council acceptance a Quit Claim Deed, more particularly described as follows: Quit Claim Deed, dated January 16, 1998, executed by Leo Soave Building Company, Inc. to the City of Livonia for the property described as follows Parts of Lots 5 & 6, Isler's Subdivision as recorded in Liber 39, Page 7 of Plats, Wayne County Records. More particularly described as part of the Southeast 1/4 of Section 33, T 1 S , R. 9 E., City of Livonia, Wayne County, Michigan. Beginning at a point distant North 88 deg. 07 min 54 sec., East 1239 66 feet and North 88 deg. 11 min. 10 sec., East 53.21 feet and along the Northeasterly line of Ann Arbor Trail (66 feet wide) North 53 deg. 29 min 12 sec., West 292 07 feet from the South 1/4 corner of Section 33, 1 .1 S , R. 9 E., thence proceeding along the Northeasterly line of Ann Arbor Trail (66 feet wide) North 53 deg. 29 min 12 sec., West 66 43 feet; thence North 01 deg. 53 min. 17 sec., West 181 68 feet; thence North 64 deg 50 min 16 sec., West 17 82 feet; thence North 01 deg 53 min. 17 sec., West 144 54 feet to the Point of Beginning Proceeding thence North 01 deg. 53 min. 17 sec., West 67 44 feet; thence South 64 deg 43 min. 28 sec., East 134 88 feet; thence South 01 deg 53 min 17 sec., East 67 44 feet; thence North 64 deg 43 min 28 sec., West 134 88 feet to the Point of Beginning (Trillium Court right-of-way; 60 ft. wide) Part of Tax Parcel No 132-01-0005-006 (Vacant land) the Council does hereby, for and in behalf of the City of Livonia, accept the aforesaid Quit Claim Deed, and the City Clerk is hereby requested to do all things necessary or incidental to fulfill the purpose of this resolution, and FURTHER, that the Mayor and City Clerk are authorized to execute a Quit Claim Deed conveying the above-described property to the County of Wayne in a form to be approved by the Department of Law 30816 Council President Engebretson relinquished the Chair to Vice President Walsh at 910 pm On a motion by Laura, seconded by Vandersloot, and unanimously adopted, it was #160-98 WHEREAS, the City of Livonia finds that there is an urgent necessity for Seven Mile Road between Farmington and Newburgh to be widened and improved in Sections 4, 5, 8 and 9 in the City of Livonia, Wayne County, Michigan, and WHEREAS, the Council finds that it is necessary to widen and alter Seven Mile Road in this area in order to facilitate the flow of traffic and to alleviate traffic congestion as a matter of public safety and convenience and to promote the public welfare generally; and WHEREAS, the Council further finds that the acquisition of certain rights- of-way, as further described hereinafter, is indispensable to the necessary widening, paving, altering and improvement of Seven Mile Road, and WHEREAS, the City Engineer has recommended that Seven Mile Road between Farmington and Newburgh be widened and altered so as to provide four traffic lanes of regulation width, along with a left-turn lane, similar to existing roads which are located throughout the City, and presents herewith plans to that effect for approval by this Council, and WHEREAS, the aforesaid improvement is to be financed from part of the proceeds of the 12 Million Dollar General Obligation Road Improvement Bond Issue approved by the electorate of the City in 1989; and WHEREAS, Seven Mile Road between Farmington and Newburgh is a county road under the jurisdiction and control of the County of Wayne, Michigan, and WHEREAS, the City of Livonia and the County of Wayne, Michigan, have heretofore entered into agreements pursuant to provisions contained in Act 51 of the Public Acts of the State of Michigan of 1951, as amended, wherein the aforementioned County of Wayne has authorized the City of Livonia to act on its behalf in acquiring either by negotiation or condemnation proceedings right-of-way; and WHEREAS, the widening of Seven Mile Road between Farmington and Newburgh is incorporated in the Master Plan of the City of Livonia as part of the Master Thoroughfare Plan, having been incorporated in said Master Thoroughfare Plan by a resolution of the City Planning Commission adopted on April 19, 1951, as amended June 12, 1973, 30817 NOW, THEREFORE, BE IT RESOLVED, that this Council for the City of Livonia, Wayne County, Michigan, hereby approves the plans for the referenced project prepared by Orchard, Hiltz & McCliment, with a working date of October 10, 1997, Sheets 1 - 24, and BE IT FURTHER RESOLVED, that this Council hereby declares that the acquisition of certain right-of-way, as hereinafter described, is necessary for the widening, paving, altering and improvement of Seven Mile Road which is necessary as a public improvement for the use and benefit of the public, for the purposes of its incorporation, for a public purpose within the scope of its power, and that a good faith offer to purchase said right- of-way has been made to the known property owners; and BE IT FURTHER RESOLVED, that this Council does hereby declare that it determines it necessary to take the fee to private property upon just compensation to be paid therefore for such improvement, the said properties necessary for the required rights-of-way and the just compensation for same being as follows. The South 60 feet of the following parcel of land. Part of the SE 1/4 of Section 4, T 1 S , R. 9 E., City of Livonia, Wayne County, Michigan, described as beginning S 89°57'10" West, 1,176 20 feet from the Southeast corner of Section 4, thence S 89°57'10" West, 150 10 feet; thence N 0°05'45" East, 310 feet; thence N 89°57'10" East, 149 51 feet; thence S 0°00'50" East, 310 feet to the point of beginning. 1 07 acres. (33612 Seven Mile Road) Tax ID No 016-99-0025-000 Portion of Wayne County Bureau of Taxation Property Number 016-99-0025-000 (33612 Seven Mile Road) Interested parties Dominic Soave and Elaine Soave, husband and wife, Business Address. 33521 Seven Mile Road, Livonia, MI 48152 Michael Soave and Kim Soave, husband and wife, Business Address. 33521 Seven Mile Road, Livonia, MI 48152 Estate or interest to be taken. Fee simple in real property Subject to delinquent taxes in accordance with Act 270 of the Public Acts of 1931 and the prorating of taxes in accordance with the provisions of Act 288 of the Public Acts of 1966 Estimated just compensation. $12,150 00 30818 BE IT FURTHER RESOLVED, that the Department of Law of the City of Livonia be and is hereby authorized and directed to institute and conduct the necessary proceedings on behalf of the City of Livonia in the Circuit Court for the County of Wayne, State of Michigan (that being the County where the private property sought to be taken is located), to carry out the objectives of this resolution, and to acquire by condemnation for the City of Livonia the private property hereinbefore described for the purposes of widening, paving, altering and improving Seven Mile Road between Farmington and Newburgh, as a necessary and authorized public improvement, and that said proceedings be brought in accordance with the provisions of Act 87 of the Public Acts of 1980, as amended, being MCLA 213 51, et seq , and which proceedings are made subject to being authorized by the County of Wayne, BE IT FURTHER RESOLVED, that the Council does hereby authorize the expenditure of a sum not to exceed $12,150 00 for acquisition costs and, FURTHER, the Council does hereby authorize the expenditure of a sum not to exceed $2,000 00 as the City's portion of the prorated City, County, County Drain, School and Community College tax in connection with the aforesaid right-of-way, the same to be prorated as of the date of closing, and FURTHER, the Council does hereby authorize the payment of the aforesaid sum from the 12 Million Dollar General Obligation Road Improvement Bond Issue approved by the electorate of the City in 1989 as compensation to be paid to the subject property owners in connection with the project; and the City Clerk and City Treasurer are hereby authorized to do all things necessary or incidental to the full performance of this resolution, and BE IT FURTHER RESOLVED, that the Mayor and City Clerk are hereby authorized to affix their signatures to a Declaration of Taking in order to carry out the provisions of this Resolution and Statement of Necessity No one from the audience wished to speak at this time Councilmember Brosnan, along with the rest of the Council, congratulated William C Fried as being the recipient of the "1st Citizen of Livonia" award for 1998 Additionally, Councilmember Duggan wished Councilmember Pastor a "Happy Birthday" (February 3, 1998) 30819 On a motion by Duggan, seconded by Brosnan, and unanimously adopted, this 1,363rd Regular Meeting of the Council of the City of Livonia was adjourned at 9.15 p m., February 25, 1998 e, TEL'ar:L_ Jo= McCotter, City Clerk