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HomeMy WebLinkAboutCOUNCIL MINUTES 1993-09-20 SPECIAL 27868 MINUTES OF THE TWO HUNDRED TWENTY-EIGriTH SPECIAL MEETING OF THE COUNCIL OF THE CITY OF LIVONIA Pursuant to the provisions of Section 8, Chapter 14 of the City Charter, the above meeting was held September 20, 1993, at the City Hall, 33000 Civic Center Drive, Livonia, Michigan, and was called to order by the President of the Council at 7 50 p m. Roll was called with the following result: Present Sean P. Kavanagh, Laura M Toy*, Dale A. Jurcisin, Fernon P Feenstra, and Gerald Taylor Absent Michael P. McGee and Ron Ochala. (*Toy arrived at 7 56 p m ) Elected and appointed officials present Robert D Bennett, Mayor; Harry Tatigian, City Attorney; Joan McCotter, City Clerk; and James Andres, Chief Accountant No one spoke during the audience communication portion at the beginning of the meeting. On a motion by Feenstra, seconded by Jurcisin, and unanimously adopted, it was ORDINANCE NO 2195 AN ORDINANCE TO PROVIDE FOR THE ISSUANCE AND SALE OF REVENUE REFUNDING BONDS OF EQUAL STANDING WITH CERTAIN OUTSTANDING WATER SUPPLY AND WASTEWATER SYSTEM REVENUE BONDS, TO PAY THE COST OF REFUNDING ALL OR PART OF THE CITY'S WATER SUPPLY AND WASTEWATER SYSTEM REVENUE BONDS, SERIES 1988 (LIMITED TAX GENERAL OBLIGATION) AND ALL OR PART OF THE CITY'S WATER SUPPLY AND WASTEWATER SYSTEM REVENUE BONDS, SERIES 1989 (LIMITED TAX GENERAL OBLIGATION) AND TO PRESCRIBE THE FORM OF THE REFUNDING BONDS; TO PROVIDE FOR THE COLLECTION OF REVENUES FROM THE SYSTEM SUFFICIENT FOR THE PURPOSE OF PAYING THE COSTS OF OPERATION AND MAINTENANCE OF THE SYSTEM AND TO PAY THE PRINCIPAL OF AND INTEREST ON THE REFUNDING BONDS AND CERTAIN OUTSTANDING BONDS OF THE SYSTEM; TO PROVIDE AN ADEQUATE RESERVE FUND FOR THE REFUNDING BONDS AND OUTSTANDING BONDS OF THE SYSTEM; TO PROVIDE FOR THE SEGREGATION AND DISTRIBUTION OF THE REVENUES; TO PROVIDE FOR THE RIGHTS OF THE HOLDERS OF THE REFUNDING BONDS AND OUTSTANDING BONDS OF THE SYSTEM IN ENFORCEMENT THEREOF; AND TO PROVIDE FOR OTHER MATTERS RELATING TO THE SYSTEM AND THE REFUNDING BONDS AND OUTSTANDING BONDS OF THE SYSTEM. 27869 THE CITY OF LIVONIA ORDAINS im- Section 1 . Definitions . Whenever used in this Ordinance, except when otherwise indicated by the context, the following terms shall have the following meanings : (a) "Act 94" means Act 94 , Public Acts of Michigan, 1933 , as amended. (b) "Bonds" mean the Refunding Bonds, and any additional Bonds presently or hereafter issued of equal standing. (c) "Bond Purchase Agreement" means the Bond Purchase Agreement relating to the purchase of the Refunding Bonds by and between the City and the Underwriter. (d) "Issuer" or "City" means the City of Livonia, County of Wayne, State of Michigan. low (e) "Mandatory Redemption Requirements" means the mandatory prior redemption requirements for Bonds that are term Bonds, if any, as specified in the Bond Purchase Agreement relating to the Refunding Bonds or in any subsequent Ordinance in connection with the issuance of additional bonds. (f) "Outstanding Bonds" means (a) the Issuer's Water Supply and Wastewater System Revenue Bonds, Series 1988 (Limited Tax General Obligation) , in the aggregate outstanding principal amount of Four Million Five Hundred Thousand Dollars ($4 , 500, 000) , which bonds are dated as of December 1, 1988, and mature serially on November 1st of each of the years 1989 to 2009 , inclusive (b) the Issuer's Water Supply and LigWastewater System Revenue Bonds, Series 1989 (Limited Tax General Obligation) , in the aggregate principal amount of Four 27870 Million Six Hundred Fifty Thousand Dollars ($4 , 650, 000) , which bonds are dated as of November 1, 1989, and mature serially on November 1st of each of the years 1990 through 2009, inclusive and (c) the issuer' s $5 , 000 , 000 Water Supply and Wastewater System Revenue Bonds, Series 1993 which bonds are dated as of August 1, 1993 and mature serially on November 1st from 1993 to 2012 , inclusive; (g) "Outstanding Ordinances" means Ordinance No. 1958 , Ordinance No. 2015 and Ordinance No. 2179 . (h) "Refunding Bonds" means the Water Supply and Wastewater System Revenue Refunding Bonds, Series 1994 (Limited Tax General Obligation) of the Issuer authorized by this Ordinance. 1. (i) "Refunded Bonds" means a portion of the Outstanding Bonds as shall be identified in the Sales Resolution referred to herein. (j ) "Revenues" and "Net Revenues" mean the revenues and net revenues of the System and shall be construed as defined in Section 3 of Act 94 , including with respect to "Revenues" , the earnings derived from the investment of moneys in the various funds and accounts established by the Outstanding Ordinances and this Ordinance. (k) "Sales Resolution" means the Sales Resolution to be adopted by the Issuer respecting the sale of the Refunding Bonds. (1) "Sufficient Government Obligations" means direct L obligations of the United States of America or obligations the principal and interest on which is fully guaranteed by the 27871 United States of America, not redeemable at the option of the 10.: issuer, the principal and interest payments upon which, without reinvestment of the interest, come due at such times and in such amounts as to be fully sufficient to pay the interest as it comes due on the Bonds and the principal and redemption premium, if any, on the Bonds as it comes due whether on the stated maturity date or upon earlier redemption. Securities representing such obligations shall be placed in trust with a bank or trust company, and if any of the Bonds are to be called for redemption prior to maturity, irrevocable instructions to call the Bonds for redemption shall be given to the paying agent. (m) "System" means the entire Water Supply and Wastewater System of the City, both inside and outside the City including all plants , works , instrumentalities and properties, used or useful in connection with the collection and treatment of sanitary sewage, and all facilities used or useful in the supply and distribution of water as the same now exists, and all enlargements, extensions, repairs and improvements thereto hereafter made. (n) "Transfer Agent" and/or "Escrow Agent" means NBD Bank, N.A. , Detroit, Michigan. (o) "Underwriter" means Hutchinson, Shockey, Erley & Co. , as representative of the purchasers of the Refunding Bonds. Section 2 . Necessity; Public Purpose. It is hereby Ldetermined to be a necessary public purpose of the Issuer to refund the Refunded Bonds. 27872 Section 3 . Payment of Cost; Bonds Authorized. To pay the twl costs associated with the refunding of the Refunded Bonds, including all legal, financial and other expenses incident thereto and incident to the issuance and sale of the Bonds, the Issuer shall borrow the sum of not to exceed Eight Million Dollars ($8, 000, 000) , as finally determined in the Sales Resolution and issue the Bonds therefor pursuant to the provisions of Act 94 . The remaining costs , if any, of refunding the Refunded Bonds shall be defrayed from City funds on hand and legally available for such use, including moneys in the bond reserve accounts established for the Refunded Bonds . Section 4 . Bond Details , Registration and Execution. The Bonds hereby authorized shall be designated WATER SUPPLY AND WASTEWATER SYSTEM REVENUE REFUNDING BONDS , SERIES 1994 (Limited Tax General Obligation) , shall be payable primarily out of the Net Revenues, as set forth more fully herein, shall consist of bonds of the denomination of $5, 000, or integral multiples of $5 , 000 not exceeding in any one year the amount maturing in that year, dated as of January 1, 1994 or such later date as shall be determined in the Sales Resolution, numbered in order of authentication, and shall mature on November 1st in the years 1994 to 2009 , inclusive, or such other years of maturity as shall be determined in the Sales Resolution. The Bonds shall bear interest at a rate or rates set forth in the Bond Purchase Agreement determined on sale thereof, but in any event not exceeding 8% per annum, payable on May 1 and November 1 twoof each year, commencing May 1, 1994 , by check or draft mailed by the Transfer Agent to the person or entity which is , as of the 15th 27873 day of the month preceding the interest payment date, the registered owner at the registered address as shown on the registration books of the Issuer maintained by the Transfer Agent. The date of determination of registered owner for purposes of payment of interest as provided in this paragraph may be changed by the Issuer to conform to market practice in the future. The principal of the Bonds shall be payable at the principal trust office of the Transfer Agent. The Bonds shall be sold at the price set forth in the Bond Purchase Agreement. The Bonds may be subject to redemption prior to maturity at the times and prices and in the manner finally determined by the City Council in the Sales Resolution. 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 in the manner specified in the form of the Bonds contained in Section 13 of this Ordinance. The Bonds shall be executed in the name of the Issuer with the facsimile signatures of the Mayor, the City Clerk and the City Treasurer and shall have a facsimile of the Issuer' s seal printed on them. No Bond shall be valid until authenticated by an authorized signer of the Transfer Agent. The Bonds shall be delivered to the Transfer Agent for authentication and be delivered by the Transfer Agent to the Underwriter in accordance with instructions from the City Clerk of the Issuer upon payment of the purchase price for the Bonds in accordance with the bid therefor 27874 when accepted. Executed blank bonds for registration and issuance tr- to transferees shall simultaneously, and from time to time thereafter as necessary, be delivered to the Transfer Agent for safekeeping. Section 5 . Registration and Transfer. 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 Issuer shall execute and the transfer agent shall authenticate and deliver a new Bond or Bonds, for like aggregate principal amount. The Transfer Agent shall require payment by the bondholder requesting the transfer of any tax or other governmental charge required to be paid with respect to the transfer. The Transfer Agent shall not be required ( i) to issue, register the transfer of or exchange any Bond during a period beginning at the opening of business 15 days before the day of the giving of a notice of redemption of Bonds selected for redemption as described in the form of Bonds contained in Section 16 of this Ordinance and ending at the close of business on the day of that giving of notice, or (ii) to register the transfer of or exchange any Bond so selected for redemption in whole or in part, except the unredeemed portion of Bonds being redeemed in part. The Issuer shall give the Transfer Agent notice of call for redemption at least 20 days prior to the date notice of redemption is to be given. 27875 The Transfer Agent shall keep or cause to be kept, at its principal office, sufficient books for the registration and transfer of the Bonds, which shall at all times be open to inspection by the Issuer; and, upon presentation for such purpose, the Transfer Agent shall, under such reasonable regulations as it may prescribe, transfer or cause to be transferred, on said books, Bonds as hereinbefore provided. If any Bond shall become mutilated, the Issuer, at the expense of the holder of the Bond, shall execute, and the Transfer Agent shall authenticate and deliver, a new Bond of like tenor in exchange and substitution for the mutilated Bond, upon surrender to the Transfer Agent of the mutilated Bond. If any Bond issued under this Ordinance shall be lost, destroyed or stolen, evidence of the loss, destruction or theft may be submitted to the Transfer Agent and, if this evidence is satisfactory to both and indemnity satisfactory to the Transfer Agent shall be given, and if all requirements of any applicable law including Act 354 , Public Acts of Michigan, 1972 , as amended ( "Act 354") , being sections 129 . 131 to 129 . 135 , inclusive, of the Michigan Compiled Laws have been met, the Issuer, at the expense of the owner, shall execute, and the Transfer Agent shall thereupon authenticate and deliver, a new Bond of like tenor and bearing the statement required by Act 354 , or any applicable law hereafter enacted, in lieu of and in substitution for the Bond so lost, destroyed or stolen. If any such Bond shall have matured or shall be about to mature, instead of issuing a substitute Bond the Transfer Agent may pay the same without surrender thereof . 27876 Section 6 . Payment of Bonds. The Bonds and the interest iw- thereon shall be payable primarily from the Net Revenues, and to secure such payment, there is hereby created a statutory lien upon the whole of the Net Revenues which shall be a first lien to continue until payment in full of the principal of and interest on all Bonds payable from the Net Revenues, or, until sufficient cash or Sufficient Government Obligations have been deposited in trust for payment in full of all Bonds of a series then outstanding, principal and interest on such Bonds to maturity, or, if called for redemption, to the date fixed for redemption together with the amount of the redemption premium, if any. The first lien referred to herein shall be equally shared and be a first priority with the City's Outstanding Bonds . Upon deposit of cash or Sufficient LGovernment Obligations, as provided in the previous sentence, the statutory lien shall be terminated with respect to that series of Bonds, the holders of that series shall have no further rights under this Ordinance except for payment from the deposited funds, and the Bonds of that series shall no longer be considered to be outstanding under this Ordinance . In addition, since more than 25% of the cost of the Projects for which that portion of the Outstanding Bonds which are being refunded herein were issued were defrayed from the proceeds of grant funds, the City has previously pledged to that portion of the Outstanding Bonds which are being refunded herein and does hereby reaffirm its pledge to the Refunding Bonds its limited tax full faith and credit for the payment of the principal of and interest tii on the Refunding Bonds. Should the Net Revenues of the System be at any time insufficient to pay the principal of and interest on the Refunding Bonds and/or the Outstanding Bonds , as the same 27877 becomes due, then the City shall advance from any funds available LI therefor; or, if necessary, levy taxes on all taxable property in the City, subject to applicable constitutional, charter and statutory limitations, such sums as may be necessary to pay said principal and interest. Such funds shall be deposited directly into the Bond and Interest Redemption Fund established pursuant to Section 13 (B) of Ordinance No . 1958 , and the City shall be reimbursed for any such advance from the Net Revenues of the System subsequently received which are not otherwise pledged or encumbered by the Outstanding Ordinances or this Ordinance. Section 7 . Bondholders ' Riahts ; Receiver . The holder or holders of the Bonds representing in the aggregate not less than twenty percent (20%) of the entire principal amount thereof then outstanding, may, by suit, action, mandamus or other proceedings, protect and enforce the statutory lien upon the Net Revenues of the System, and may, by suit, action, mandamus or other proceedings, enforce and compel performance of all duties of the officers of the Issuer, including the fixing of sufficient rates, the collection of Revenues, the proper segregation of the Revenues of the System and the proper application thereof. The statutory lien upon the Net Revenues, however, shall not be construed as to compel the sale of the System or any part thereof . If there is a default in the payment of the principal of or interest on the Bonds, any court having jurisdiction in any proper action may appoint a receiver to administer and operate the System Lon behalf of the Issuer and under the direction of the court, and by and with the approval of the court to perform all of the duties of the officers of the Issuer more particularly set forth herein and in Act 94 . 27878 The holder or holders of the Bonds shall have all other rights lwand remedies given by Act 94 and law, for the payment and enforcement of the Bonds and the security therefor. Section 8 . Rates and Charaes . The rates and charges for service furnished by and the use of the System and the methods of collection and enforcement of the collection of the rates shall be those in effect on date even herewith, as the same may be increased from time to time. Section 9 . No Free Service or Use . No free service or use of the System, or service or use of the System at less than the reasonable cost and value thereof, shall be furnished by the System to any person, firm or corporation, public or private, or to any public agency or instrumentality, including the Issuer. [a Section 10 . Fixing and Revising Rates . The rates presently in effect in the City are estimated to be sufficient to provide for the payment of the expenses of administration and operation and such expenses for maintenance of the System as are necessary to preserve the System in good repair and working order, to provide for the payment of the principal of and interest on the Bonds as the same become due and payable, and the maintenance of the reserve therefor and to provide for all other obligations, expenditures and funds for the System required by law and this Ordinance. The rates shall be reviewed not less than once a year and shall be fixed and revised from time to time as may be necessary to produce these amounts, and it is hereby covenanted and agreed to fix and maintain rates for services furnished by the System at all times sufficient to provide for the foregoing. 27879 Section 11 . Bond Reserve Fund. The Reserve Account in the im Bond and Interest Redemption Fund, as established and supplemented by the Outstanding Ordinances shall be maintained in such amounts, so that said Bond Reserve Account shall total a sum equal to the lesser of (a) such amount as is equal to the largest annual debt service requirement on the Bonds or (b) 10% of the principal amount of the Bonds. In the event that the interest in said Reserve Account is greater than such largest annual debt service requirement such excess amount shall be promptly transferred to the Receiving Fund. Section 12 . Bond Proceeds . From the proceeds of the sale of the Refunding Bonds there shall be immediately deposited in the Redemption Fund an amount equal to the accrued interest and im premium, if any, received on the delivery of the Refunding Bonds. In addition, there shall be deposited to the Bond Reserve Account from the proceeds of the Refunding Bonds, a sum, which taken together with moneys transferred from the Bond Reserve Account established and maintained, if any and/or sums transferred from System funds on hand and legally available for such use, if any, which will be sufficient to meet the requirements of Section 11 hereunder. Certain of the proceeds of the Refunding Bonds and, if deemed necessary or advisable by the Issuer, moneys on hand in the outstanding Bond Reserve Account, shall be deposited in an escrow fund or funds (the "Escrow Fund") consisting of cash and investments in direct obligations of or obligations of the principal of and interest on which are unconditionally guaranteed tm by the United States of America or other obligations the principal of and interest on which are fully secured by the foregoing not redeemable at the option of the Issuer in amounts fully sufficient 27880 to pay the principal, interest and redemption premiums on all of 1. the Refunded Bonds, which are to be refunded hereunder and shall be used only for such purposes . If deemed necessary or advisable by the Issuer, the Escrow Fund may consist of two or more separate funds as provided in the Escrow Agreement. The Escrow Fund shall be held by NBD Bank, N.A. , as the Escrow Agent (the "Escrow Agent") pursuant to an escrow agreement (the "Escrow Agreement") which shall irrevocably direct the Escrow Agent to take all necessary steps to pay the principal of and interest on the Refunded Bonds when due and to call the Refunded Bonds for redemption on the first call date, as specified by the Issuer. The amounts held in the Escrow Fund shall be such that the cash and investments and income received thereon will be sufficient without reinvestment to pay the .= principal, interest and redemption premiums on the Refunded Bonds op when due at maturity or by call for redemption as required by the Sales Resolution. The remaining proceeds of the Bonds shall be used to pay the costs of issuance of the Bonds . Any proceeds in excess of the proceeds deposited in the Escrow Fund or required to pay costs of issuance shall be deposited in the Redemption Fund and used to pay interest on the Bonds on May 1, 1994 . The City Clerk, the City Treasurer, the Chief Accountant and the Finance Director of the Issuer are each authorized to negotiate an Escrow Agreement on behalf of the Issuer. Section 13 . Bond Form. The Bonds shall be in substantially the following form: 27881 UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF WAYNE CITY OF LIVONIA WATER SUPPLY AND WASTEWATER SYSTEM REVENUE REFUNDING BOND, SERIES 1994 (LIMITED TAX GENERAL OBLIGATION) Interest Maturity Date of Original Rate Date Issue CUSIP November 1, January 1, 1994 REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS The City of Livonia, County of Wayne, State of Michigan (the "Issuer") , for value received, hereby promises to pay, primarily out of the hereinafter described Net Revenues of the Issuer's Water Supply and Wastewater System (hereinafter defined) the Principal Amount shown above in lawful money of the United States of America to the Registered Owner shown above, or registered assigns, on the Maturity Date shown above, unless prepaid prior thereto as hereinafter provided, with interest thereon from the Date of Original Issue shown above or such later date to which interest has been paid, until paid, at the Interest Rate per annum shown above, payable on May 1, 1994 , and semiannually thereafter. Principal of this bond is payable upon surrender of this bond at the principal corporate trust office of NBD Bank, N.A. , Detroit, Michigan or such other Transfer Agent as the Issuer may hereafter designate by notice mailed to the registered owner not less than 60 days prior to the date of any change in Transfer Agent. Interest on this bond is payable by check or draft mailed by the Transfer Agent to the person or entity who is, as of the 15th day of the month preceding the interest payment date, the registered owner of record, at the registered address as shown on the registration books of the Issuer kept by the Transfer Agent. For prompt payment of principal and interest on this bond, the Issuer has irrevocably pledged the revenues of the Water Supply and Wastewater System of the Issuer (the "System") , including all appurtenances, extensions and improvements thereto, after provision has been made for reasonable L. and necessary expenses of operation, maintenance and administration (the "Net Revenues") , and a statutory first lien thereon is hereby recognized and created. 27882 This bond is one of a series of bonds of even date of original issue aggregating the principal sum of $ , issued pursuant to Ordinance Nos . 1958 , 2015 , 2179 and of the Issuer, duly adopted by the City Council of the Issuer (the "Ordinances") , and under and in full compliance with the Constitution and statutes of the State of Michigan, including specifically Act 94 , Public Acts of Michigan, 1933 , as amended, for the purpose of paying the cost of refunding certain of the Issuer' s outstanding Water Supply and Wastewater System Revenue Bonds (Limited Tax General Obligation) . For a complete statement of the revenues from which and the conditions under which this bond is payable, a statement of the conditions under which additional bonds of equal standing as to the Net Revenues may hereafter be issued and the general covenants and provisions pursuant to which this bond is issued, reference is made to the above-described Ordinances . The bonds of this issue are of equal standing and priority of lien as to the Net Revenues of the System with the Issuer' s Water Supply and Wastewater System Revenue Bonds , Series 1993 and the Issuer' s Water Supply and Wastewater System Revenue Bonds , Series 1988 (Limited Tax General Obligation) , and the Issuer' s Water Supply and Wastewater System Revenue Bonds, Series 1989 (Limited Tax General Obligation) authorized by Ordinances Nos . 1958 and 2015 which are not being refunded with the proceeds of the bonds of this Issue. Bonds of this issue maturing in the years to inclusive, are not subject to redemption prior to maturity. Bonds or portions of bonds in multiples of $5 , 000 maturing in the year and thereafter may be redeemed at the option of the Issuer, in such order as the Issuer shall determine and within any maturity by lot, on any interest payment date on or after 1, at par and accrued interest to the date fixed for redemption plus a premium expressed as a percentage of par as follows : % of the par value of each bond or portion thereof called for redemption on or after , but prior to % of the par value of each bond or portion thereof called for redemption on or after , but prior to % of the par value of each bond or portion thereof called for redemption on or after , but prior to No premium shall be paid on bonds or portions of bonds if called for redemption on or after 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 27883 the principal amount of the portion of the original bond not called for redemption. Notice of redemption of any bond or portion thereof shall be given by the Transfer Agent 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 bonds 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 primarily a self-liquidating bond and is first payable, both as to principal and interest, from the Net Revenues of the System. The principal of and interest on this bond are secured by the statutory lien hereinbefore mentioned. As Ladditional security for the payment of the principal of and interest on this bond and the series of which it is one, the City has pledged its limited tax full faith and credit for such payment, and if necessary, the City will levy taxes on all taxable property in the City for such purpose, subject to applicable constitutional, charter and statutory limitations The Issuer has covenanted and agreed, and does hereby covenant and agree, to fix and maintain at all times while any bonds payable from the Net Revenues of the System shall be outstanding, such rates for service furnished by the System as shall be sufficient to provide for payment of the interest on and the principal of the bonds of this issue and any additional bonds of equal standing as and when the same shall become due and payable, and to create and maintain a bond redemption fund ( including a bond reserve account) therefor, to provide for the payment of expenses of administration and operation and such expenses for maintenance of the System as are necessary to preserve the same in good repair and working order, and to provide for such other expenditures and funds for the System as are required by the Ordinances . This bond is transferable only upon the books of the Issuer kept for that purpose at the office of the Transfer Agent by the registered owner hereof in person, or by the registered owner' s attorney duly authorized in writing, upon the surrender of this Lbond 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 27884 principal amount and of the same maturity shall be issued to the transferee in exchange therefor as provided in the Ordinance authorizing the bonds, 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 precedent to and in the issuance of this bond and the series of bonds of which this is one have been done and performed in regular and due time and form as required by law. 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 executed with the facsimile signatures of its Mayor, its City Clerk and its City Treasurer and a facsimile of its corporate seal to be printed on this bond, all as of the Date of Original Issue. CITY OF LIVONIA 1m By Mayor (Seal) Countersigned: City Clerk City Treasurer tm 27885 Certificate of Authentication This bond is one of the bonds described in the within- mentioned Ordinances . NBD BANK, N.A. By Authorized Signatory Date of Registration: Im 27886 Section 14 . Sale of Bonds . The City Clerk, Chief Accountant, City Treasurer and Finance Director are each hereby authorized to negotiate a Bond Purchase Agreement with the Underwriter finalizing the details of the Bonds within the authorized parameters of this Ordinance and the City Clerk, Chief Accountant, Finance Director, City Treasurer and City Attorney are each authorized to do all other acts and take all other necessary procedures required to effectuate the sale, issuance and delivery of the Bonds. Section 15 . Tax Matters . The Issuer shall, to the extent permitted by law, 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 (the "Code") , including, but not limited to, actions relating to any required rebate of arbitrage earnings and the expenditures and investment of Bond proceeds and moneys deemed to be Bond proceeds . The Refunding Bonds are hereby designated as "qualified tax exempt obligations" for purposes of deduction of interest expense by financial institutions. Section 16 . Savings Clause. Ordinance Nos. 1958 , 2015 and 2179 shall continue in effect, except as specifically supplemented or altered herein. Ordinance No . 2163 is hereby repealed. Section 17 . Severability ; Paraaraph Headings ; and Conflict. If any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of im this Ordinance. The paragraph headings in this Ordinance are 27887 furnished for convenience of reference only and shall not be considered to be part of this Ordinance . Section 18 . Publication and Recordation. This Ordinance shall be published in full in the Observer-Eccentric, a newspaper of general circulation in the City, qualified under State law to publish legal notices, promptly after its adoption, and shall be recorded in the Ordinance Book of the Issuer and such recording authenticated by the signatures of the Mayor and City Clerk. Section 19 . Other Matters . The Finance Director, Chief Accountant and/or the City Clerk are each authorized and directed to (a) file with the Michigan Department of Treasury an application for prior approval of the issuance of the Bonds together with requests for such waivers as each shall deem necessary or [ft appropriate, (b) approve the circulation of a preliminary official statement describing the Bonds and to deem the preliminary official statement "final" for purposes of Rule 15c2-12 of the SEC; and (c) do all other acts and take all other necessary procedures required to effectuate the sale, issuance and delivery of the Bonds . Section 20 . Effective Date. Pursuant to the provisions of Section 6 of Act 94 , this Ordinance shall be approved on the date of first reading and accordingly this Ordinance shall immediately be effective upon its adoption . Adopted and signed this 20th day of September, 1993 . Signed Mayor Signed City Clerk 27888 ' No one from the audience wished to speak during the audience communication portion at the end of the meeting. On a motion by Jurcisin, seconded by Toy, and unanimously adopted, this 228th Special Meeting of the Council of the City of Livonia was duly adjourned at 7:58 p.m. , September 20, 1993. a , , 71i& , I , J..ilMcCotter, City Clerk L L