HomeMy WebLinkAboutCOUNCIL MINUTES 1993-11-15 SPECIAL 27962
MINUTES OF THE TWO HUNDRED TWENTY-NINTH 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 November 15, 1993, at the City Hall,
33000 Civic Center Drive, Livonia, Michigan, and was called to order by the
President of the Council at 7 51 p.m. Roll was called with the following
result: Sean P. Kavanagh, Laura M Toy, Dale A Jurcisin, Fernon P
Feenstra, and Gerald Taylor Absent Ron Ochala and Michael P. McGee.
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 Toy, and unanimously
adopted, it was
#900-93 WHEREAS, by Ordinance No 2195, adopted on September
20, 1993 (the "Bond Ordinance") the City authorized not to exceed
$8,000,000 Water Supply and Wastewater System Revenue Refunding
Bonds, Series 1994 (Limited Tax General Obligation) (the "Bonds")
for the purpose of refunding all or part of the City's Water
Supply and Wastewater System Revenue Bonds, Series 1988 (Limited
Tax General Obligation) dated December 1, 1988 (the "1988 Bonds")
maturing in the years 1999 through 2009, inclusive and (b) all or
part of the City's Water Supply and Wastewater System Revenue
Bonds, Series 1989, dated November 1, 1989 (the "1989 Bonds")
maturing in the years 2000 to 2009, inclusive; and
WHEREAS, the Michigan Department of Treasury (the "Department")
approved issuance of the Bonds; and
WHEREAS, the City has received an offer to purchase the Bonds
from Hutchinson, Shockey, Erley & Co , First of Michigan
Corporation and Roney & Co (hereinafter the "Underwriters"), and
has determined that it is in the best interests of the City to
accept the offer
NOW, THEREFORE, BE IT RESOLVED THAT:
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1 The offer of the Underwriters as set forth in the proposed
bond purchase agreement (the "Bond Purchase Agreement")
presented to this City Council to purchase the Bonds in the
principal amount and at a purchase price as shown on Exhibit
A attached hereto and made part hereof plus accrued
interest, is hereby accepted and the Mayor and City Clerk
are each authorized and directed to execute and deliver the
Bond Purchase Agreement on behalf of the City.
2. The Bonds shall be issued for the purpose of raising all of
the money to refund the 1988 Bonds due November 1, 1999
through November 1, 2009 and the 1989 Bonds due November 1,
2000 through November 1, 2009 (the "Prior Bonds") . The
Bonds shall be dated as of January 1, 1994, shall be
designated Water Supply and Wastewater System Revenue
Refunding Bonds, Series 1994 (Limited Tax General
Obligation) and shall mature and bear interest as shown on
Exhibit A
The Bonds maturing on or after November 1, 2003 shall be
subject to optional redemption on November 1, 2002 or on any
interest payment date thereafter, in whole or in part, in
such order as the City shall determine, at par plus accrued
interest to the date fixed for redemption In addition, the
Bonds maturing in the year 2009 shall be a term bond subject
ifor to mandatory redemption on November 1, 2007 and November 1,
2008 as set forth in Exhibit A
3 NBD Bank, N A Detroit, Michigan is hereby approved as
Transfer Agent for the Bonds and is further approved as
Trustee under the proposed escrow agreement (the "Escrow
Agreement") presented to this City Council
4 The Escrow Agreement providing for payment and redemption of
the Prior Bonds is hereby approved The Trustee is directed
and authorized to implement and discharge its
responsibilities thereunder. The Mayor and City Clerk are
each authorized to execute and deliver the Escrow Agreement
substantially in the form presented to this City Council
with such changes and completions as shall be necessary in
order to accomplish refunding the Prior Bonds in accordance
with law, the Bond Ordinance and the order of the
Department.
5 The Preliminary Official Statement relating to the Bonds
dated November 2, 1993, and its use by the Underwriters is
hereby authorized, approved and confirmed
6 The Official Statement dated November 15, 1993, relating to
the Bonds, which Official Statement has been presented to
and is on file with this City Council is hereby authorized
imm and approved The Mayor, City Clerk, Acting Finance
Director and City Treasurer are each authorized and directed
to execute and deliver the Official Statement on behalf of
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the City The Mayor, City Clerk, Acting Finance Director
and City Treasurer are each further authorized to approve,
execute and deliver any amendments and supplements to the
Official Statement necessary to assure that the statements
therein are, and as of the time the Bonds are delivered to
the Underwriter will be true, and that it does not contain
any untrue statement of a material fact and does not omit to
state a material fact necessary in order to make the
statements, in light of the circumstances under which they
were made, not misleading
7. Upon delivery of the Bonds, the accrued interest, if any,
shall be deposited in the Debt Retirement Fund for the Bonds
and the balance, including the City's funds on hand
described below, shall be used as follows: A sum presently
estimated to be $210,791.57 shall be used to pay the
Underwriter's discount ($93,891.00), Bond Insurance premium
for the Bonds ($44,377.38) and the remaining costs of
issuance of the Bonds ($72,523. 19) including fees and
contingencies, and any balance remaining from that sum after
paying the costs of issuance shall be deposited in the Debt
Retirement Fund for the Bonds. The sum of $7,762,939.39
from the bond proceeds shall be paid to the Trustee and
invested by it as provided in the Escrow Agreement for
payment of principal, interest and redemption premium on the
Prior Bonds In addition, the City will transfer the sum of
$83,730.94 from the Water Supply and Wastewater System to be
used to pay a portion of the costs of the financing
8. The purchase of municipal bond insurance for the Bonds is
hereby approved and the Escrow Trustee is hereby directed to
pay the insurance premium for the bonds from the proceeds of
the Bonds.
9 The Mayor, City Clerk, Treasurer, Acting Finance Director,
City Attorney and all other officers, agents and employees
of the City are authorized to take all other actions
necessary and convenient to effectuate the sale of the
Bonds
10. All resolutions and parts of resolutions insofar as they
conflict with the provisions of this resolution be and the
same hereby are rescinded
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EXHIBIT A
to
RESOLUTION APPROVING SALE OF
CITY OF LIVONIA WATER SUPPLY AND WASTEWATER SYSTEM REVENUE
REFUNDING BONDS, SERIES 1994
(LIMITED TAX GENERAL OBLIGATION)
Principal Amount $7,890,000.00
Purchase Price: $7,796,109 00
Date Principal Amount Interest Rate
11/1/94 $ 90,000 2 75%
11/1/95 95,000 3 10
11/1/96 100,000 3 30
11/1/97 100,000 3 50
11/1/98 105,000 3 70
11/1/99 330,000 3 85
11/1/2000 570,000 4 00
11/1/01 610,000 4 15
11/1/02 625,000 4 30
11/1/03 660,000 4.45
11/1/04 700,000 4 60
lbw 11/1/05 735,000 4 75
11/1/06 745,000 4 90
11/1/07* 780,000 5 20
11/1/08* 815,000 5 20
11/1/09* 830,000 5 20
*Represents mandatory redemption requirements for $2,425,000 Term Bond
maturing on 11/1/09
No one from the audience wished to speak during the audience
communication portion at the end of the meeting
On a motion by Toy, seconded by Feenstra, and unanimously
adopted, this 229th Special Meeting of the Council of the City of Livonia
was duly adjourned at 7:57 p m , November 15, 1993
Jo McCotter, City Clerk