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HomeMy WebLinkAboutCOUNCIL MINUTES 2015-07-0839437 MINUTES OF THE ONE THOUSAND SEVEN HUNDRED AND EIGHTIETH REGULAR MEETING OF JULY 8, 2015 On July 8, 2015 the above meeting was held at the City Hall, 33000 Civic Center Drive, Livonia, Michigan, and was called to order by Vice President Meakin at 7 00 p m Councilmember Toy led the meeting in the Pledge Roll was called with the following result: Laura Toy, Lynda Scheel, Susan Nash, Brandon Kritzman, John Pastor and Brian Meakin Absent: Maureen Miller Brosnan Elected and appointed officials present: Scott Miller, Planning Department; Todd Zilincik, City Engineer; Don Knapp, City Attorney; Susan A. Hoff, City Clerk, Jackie Higham, Council Office, and Mayor Jack Kirksey was On a motion by Scheel, supported by Nash, and unanimously adopted, it #189-15 RESOLVED, that the Minutes of the 1,779th Regular Meeting of the Council held June 15, 2015 are hereby approved Pastor sent birthday greetings to fellow councilmember Susan Nash, as well as sister-in-law Denise Pastor and children Rachel and Ryan He also wished niece Taylor congratulations on her upcoming wedding Nash commended the Spree Committee on another successful year and Meakin echoed her sentiments Mayor Kirksey commented on his upcoming anniversary on July 18th and spoke about his sixty -plus years of marriage with his wife He then addressed the issue of fireworks and spoke about a petition that is being sponsored by Moveon org to ban and/or limit the home use of fireworks and stated information would be on the City's website very shortly for all those who would like more information on this topic Vice President Meakin announced there is new data on Items 5, 11, 12 and 13 and that there will be two X -items at the end of the meeting 39438 Regular Meeting Minutes of July 8, 2015 During Audience Communication Joseph Olson, 10632 Laurel Street, informed Council of some issues involving the parking of commercial vehicles by his neighbor in their residential neighborhood and asked for some help and guidance in getting the issue resolved Vice President Meakin indicated to Mr Olson that the matter would be referred to the Administration to be looked into further A communication from the Department of Finance dated May 20, 2015, re forwarding various financial statements of the City of Livonia for the month ending April 30, 2015 were received and placed on file for the information of the Council A communication from the Department of Finance dated June 12, 2015, re forwarding the Quarterly Investment Report for the City of Livonia as of May 31, 2015 was received and placed on file for the information of the Council was On a motion by Toy, supported by Kritzman, and unanimously adopted, it #190-15 RESOLVED, that having considered a communication from Richard McLain, Old Rosedale Gardens Homeowners Association, dated May 21, 2015, which requests permission to waive Section 8 32 070 (Noise Control) of the Livonia Code of Ordinances, as amended, to show family friendly movies beginning at dusk until the end of the movie, on July 17, 2015 (with a rain date of July 18, 2015) and August 21, 2015 (with a rain date of August 22, 2015), at Rudolf Kleinert Park, the Council does hereby grant and approve this request in the manner and form herein submitted #191-15 RESOLVED, that having considered an application from Ray Franges, 14430 Brentwood, dated May 26, 2015, requesting permission to close Brentwood Street, between Lyndon and Meadowlark, on Saturday, August 15, 2015, from 11 00 a m to 10 00 p m , for the purpose of conducting a block party, the council does hereby grant permission as requested, including therein permission to conduct the said affair on Sunday, August 16, 2015, in the event of inclement weather, the action taken herein being made subject to the approval of the Police Department #192-15 RESOLVED, that having considered an application from Michael Johnson, 32611 Hees Street, dated May 28, 2015, requesting permission to close Hees Street, between Georgia and Hubbard, on Saturday, August 15, 2015, from 1 00 p m to 10 00 p m , for the purpose of conducting a block party, the Council does hereby grant permission as requested, including therein permission to conduct the said affair on 39439 Regular Meeting Minutes of July 8, 2015 Saturday, August 22, 2015, in the event of inclement weather, the action taken herein being made subject to the approval of the Police Department. #193-15 RESOLVED, that having considered an application from Connie Myler, 16899 Westbrook, dated May 21, 2015, requesting permission to close Westbrook, between Mallory Court and Whitcomb, on Saturday, July 18, 2015, from 2 00 p m to 10 00 p m , for the purpose of conducting a block party, the Council does hereby grant permission as requested, including therein permission to conduct the said affair on Saturday, August 8, 2015, in the event of inclement weather, the action taken herein being made subject to the approval of the Police Department. A communication from Steve Marshall, 15591 Hidden Lane, Livonia, MI, dated June 15, 2015, re Request to Purchase City Owned Property, was received and placed on file for the information of the Council A communication from Cheryl Petroskey, 15608 Oporto Street, Livonia, MI, re Request to Purchase City Owned Property, was received and placed on file for the information of the Council A communication from Bill Craig, 20050 Milburn, Livonia, MI, re Request to Purchase City Owned Property, was received and placed on file for the information of the Council A communication from Sharon Marshall, 15591 Hidden Lane, Livonia, MI, dated July 8, 2015, re Request to Purchase City Owned Property, was received and placed on file for the information of the Council Bill Craig, 20050 Milburn, was also present to comment on the letter her presented to Council and spoke about the Rouge River Water Shed and how it should be protected and restored He also spoke about the preservation of nature preserves #194-15 RESOLVED, that having considered a letter from Randall W Gasser, Executive Director, Woodhaven Retirement Community, dated May 29, 2015, requesting to purchase the 40' x 160' parcel of City land (Nature Preserve), located adjacent to 29667 Wentworth (Parcel #056-99-0002-003) 39440 Regular Meeting Minutes of July 8, 2015 in order to allow for the necessary fire lane access to the property in connection with needed facility enhancements, the Council does hereby refer this item to the City Engineer, the City Planning Commission and the Parks and Recreation Commission for their reports and recommendations A communication from Susan A. Hoff, City Clerk, dated June 5,2 015, re Tax Collection for Schoolcraft Community College for the 2015/16 Tax Year, was received and placed on file for the information of the Council A handout from the Division of Police that was distributed at the June 15tH 2015 Study Meeting, re costs/construction administration to the Police building lobby by Redstone Architects, Inc , was received and placed on file for the information of the Council #195-15 RESOLVED, that having considered the report and recommendation of the Chief of Police, dated June 5, 2015, which bears the signature of the Director of Finance and the City Attorney and is approved for submission by the Mayor, the Council does hereby accept the bid submitted by Redstone Architects, Inc, 2709 S Telegraph Road, Bloomfield Hills, MI 48302, the original designer of the Police facility, for completing all work required in connection with the Police building lobby renovation project to add security to the Police building lobby and to provide construction administration oversight, for the total estimated cost of $17,775 00, FURTHER, the Council does hereby authorize an expenditure in the amount of $17,775 00 from funds already budgeted in Account No 401-000-976-000 for this purpose, FURTHER, the Council does hereby authorize such action without competitive bidding because this is part of an ongoing renovation for which Redstone Architects, Inc is providing architectural services, and such action is taken in accordance with Section 3 04 140D2a of the Livonia Code of Ordinances, as amended, and the Mayor and City Clerk are hereby authorized to execute a contract that is approved as to form and substance by the Law Department 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 #196-15 RESOLVED, that having considered the report and recommendation of the Superintendent — Operations and the Director of Public Works, dated May 27, 2015, which bears the signature of the Director of Finance and is approved for submission by the Mayor, the Council does hereby accept the bid submitted by Temperature Services, Inc , 37679 Schoolcraft, Livonia, MI 48150, for completing all work in connection with the replacement of the Civic Center Library Cooling Tower, for the total price of $77,700 00, the same having been in fact the lowest bid received and meets 39441 Regular Meeting Minutes of July 8, 2015 all specifications, FURTHER, the Council does hereby authorize an expenditure in the amount of $77,700 00 from funds already budgeted in the Capital Acquisition Account (#401-000-987-000) for this purpose, and the Director of Public Works is hereby authorized to approve any minor changes in the work as it becomes necessary; and the Mayor and City Clerk are hereby authorized to execute a contract that is approved as to form and substance by the Law Department 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 #197-15 WHEREAS, the State of Michigan, Michigan Department of Transportation (MDOT) is accepting applications for grants through the Transportation Economic Development Fund (TEDF) (Category A), and WHEREAS, McLaren Performance Technologies, Inc (McLaren) is making substantial improvements to i t s facilities that will create newjobs and investment in the City of Livonia, Michigan (City), and WHEREAS, McLaren and the City have identified that pavement improvements are needed on Hubbard Road south of Eight Mile Road, and WHEREAS, the planned improvements generally involve the widening of Hubbard Road by approximately thirteen (13) feet beginning at Eight Mile Road and extending south for a distance of 320 feet in order to provided one (1) exclusive left turn lane, one (1) right lane and one (1) inbound lane, and WHEREAS, the work is needed to improve traffic flow and turning movements for all vehicles and trucks using Hubbard Road at Eight Mile Road, and WHEREAS, all costs associated with the project that are the obligation of the City as part of the TEDF matching grant will be reimbursed by McLaren pursuant to an agreement that shall be entered into between the City and McLaren prior to execution of a contract for the work, and WHEREAS, the investments made by the McLaren in our community make the City eligible to apply for a TEDF grant to complete these necessary improvements, NOW, THEREFORE, BE IT RESOLVED that the City of Livonia City Council does hereby support the City of Livonia's application for TEDF Category A Funding and will commit to provide twenty (20%) percent of the construction costs, engineering costs and continue to maintain the improved roadway; and 39442 Regular Meeting Minutes of July 8, 2015 NOW, THEREFORE, BE IT RESOLVED that the City of Livonia City Council does hereby authorize the City Engineer to be designated as the authorized agent for all activities associated with the final design of the Hubbard Road improvements and with securing and accepting any funding #198-15 RESOLVED, that having considered a communication from Michael J Balow, Senior Manager, Ashley Capital, 2575 S Haggerty Road, Suite 500, Canton, Michigan 48188, dated May 22, 2015, to which is attached a proposed Development Agreement between Livonia West Commerce Center, LLC, 2575 S Haggerty Road, Suite 500, Canton, Michigan 48188 and the City of Livonia, providing certain terms and conditions on the re -use and maintenance of 13000 Eckles Road, pursuant to authorization established by Revitalizing Auto Communities Environmental Response (RACER) Trust under a Settlement Agreement in U S Bankruptcy Court, the Council does hereby approve the development agreement in the manner and form herein submitted, and the Mayor and City Clerk are hereby authorized, for and on behalf of the City of Livonia, to affix their signatures to the said agreement, subject to approval as to form by the Department of Law A roll call vote was taken on the foregoing resolutions with the following result: AYES Toy, Scheel, Nash, Kritzman, Pastor and Meakin NAYS None The Vice President declared the resolutions adopted On a motion by Pastor, supported by Toy, and unanimously approved, it was #199-15 RESOLVED, that the Council does hereby suspend their rules for procedure as outlined in Council Resolution 574-82 so as to permit consideration of items that do not appear on the Agenda Vice President Meakin reopened Audience Communication and the following people spoke in opposition to Agenda Item No 5 Sharon Marshall, 15519 Hidden Lane John Penny, 29740 Wentworth Steve Marshall, 15519 Hidden Lane 39443 Regular Meeting Minutes of July 8, 2015 A communication from the Department of Law, dated June 24, 2015, re proposed settlement of Pelloni v Zarras, et al lawsuit, was received and placed on file for the information of the Council On a motion by Toy, supported by Pastor, it was #200-15 RESOLVED, that having considered a communication from the Department of Law, dated June 24, 2015, approved for submission by the Mayor, the Council does hereby authorize the Department of Law to resolve the claims brought on behalf of Alyssa Pellonl v Robert Zarras, et a/; Case No 2 13-cv-12958, for the amount of $37,600 00, and the Department of Law is hereby authorized to do all things necessary or incidental to the full performance of this resolution A roll call vote was taken thereon with the following result: AYES Toy, Scheel, Nash, Kritzman, Pastor and Meakin NAYS None The Vice President declared the foregoing resolution adopted A communication from the Department of Finance, dated June 23, 2015, re Proposed Amendment to the Livonia Code of Ordinances, as amended to Section 180 of Title 13, Chapter 08 (B) (Water Service Rates and Revenues) to provide for changes in the procedures when outside reading device differs from water meter (CR 199-10), was received and placed on file for the information of the Council Pastor gave first reading to the following Ordinance AN ORDINANCE AMENDING SECTION 180 OF TITLE 13, CHAPTER 08 (B) (WATER SERVICE RATES AND REVENUES) TO PROVIDE FOR CHANGES IN THE PROCEDURES WHEN OUTSIDE READING DEVICE DIFFERS FROM WATER METER. (CR 199-10) 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 Pastor invoked the Emergency Clause and gave second reading to the foregoing Ordinance 39444 Regular Meeting Minutes of July 8, 2015 A roll call vote was taken thereon with the following result: AYES Toy, Scheel, Nash, Kritzman, Pastor and Meakin NAYS None The Vice President declared the foregoing Ordinance duly adopted and would become effective on publication An email communication from Debbie Seeman, Accounts Receivable, dated June 23, 2015, re outstanding water bill issue concerning 36475 Five Mile Road, (Petition 2015-03-01-02), was received and placed on file for the information of the Council Pastor took from the table, for second reading and adoption, the following Ordinance AN ORDINANCE AMENDING SECTION 20 OF THE ZONING MAP OF THE CITY OF LIVONIA AND AMENDING ARTICLE III OF ORDINANCE NO 543, AS AMENDED, KNOWN AND CITED AS "THE CITY OF LIVONIA ZONING ORDINANCE" BY ADDING SECTION 3 THERETO (PETITION 2015-03-01-02) 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 result: A roll call vote was taken on the foregoing Ordinance with the following AYES Toy, Scheel, Nash, Kritzman, Pastor and Meakin NAYS None The President declared the foregoing Ordinance duly adopted, and would become effective on publication On a motion by Toy, supported by Scheel, and unanimously adopted, it was 39445 Regular Meeting Minutes of July 8, 2015 #201-15 WHEREAS, pursuant to due and proper notice published and mailed to all property owners in Special Assessment District No 230 for the proposed conversion of nine (9) high pressure sodium (HPS) cobra street lights to LED in Sherwood Forest Estates Subdivision, located north of Six Mile Road, and east of Wayne Road, in the Southwest % of Section 9, in the City Livonia, Wayne County, Michigan, as required by the provisions of the City Charter and Title 3, Chapter 8 of the Livonia Code of Ordnances, as amended, a public hearing thereafter having been held thereon on Monday, June 22, 2015, at the City Hall, 33000 Civic Center Drive, Livonia, Michigan, and the City Council having duly met and reviewed the special assessments levied on the special assessment roll as prepared by the City Assessor to cover the district portion of the cost of the LED street light conversion project in Special Assessment District No 230, and WHEREAS, the City Council has heard and carefully considered all objections made to said assessments, NOW, THEREFORE, BE IT RESOLVED, that the City Council does hereby determine to convert nine (9) high pressure sodium (HPS) cobra street lights to LED in Sherwood Forest Estates Subdivision, located north of Six Mile Road, and east of Wayne Road, in the Southwest 1/4 of Section 9, and that the assessments set forth in said Special Assessment District No 230 Roll are fair and equitable and based upon benefits derived in said district, in accordance with the plans of the City Engineer and resolutions of the City Council, said Special Assessment Roll No 230 based on the conversion of nine (9) high pressure sodium (HPS) cobra street lights to LED in Sherwood Forest Estates Subdivision is hereby approved and confirmed in all respects, pursuant to the provisions of Section 3 08 130 of the Livonia Code of Ordinances, as amended, the City Clerk shall endorse the date of confirmation on the Assessment Roll, and the Assessment Roll shall then be immediately transmitted to the City Treasurer who shall take such further action as set forth in Title 3, Chapter 8 of the Livonia Code of Ordinances, as amended, and the City Clerk is hereby authorized to execute a Municipal Street Lighting Agreement as provided by Detroit Edison for this purpose, and further, a sum not to exceed $5,078 00 is hereby authorized to be expended from the cash payments posted by or collected from the homeowners in Sherwood Forest Estates Subdivision in order to defray the Detroit Edison contribution -in -aid costs connected with this street lighting conversion project; FURTHER, the Council does hereby authorize an advance expenditure in the amount of $5,078 00 from funds already budgeted in Account No 890-981-926-230 (Street Lighting -Sherwood Forest Estates Subdivision) for this purpose and authorizes the Mayor and City Clerk for and on behalf of the City of Livonia to do all other things necessary or incidental to the full performance of this resolution (CR 106-15) On a motion by Pastor, supported by Toy, and unanimously adopted, it was Regular Meeting Minutes of July 8, 2015 #202-15 RESOLVED, that the Council does hereby suspend their was rules for procedure as outlined in Council Resolution 574-82 so as to permit consideration of items that do not appear on the Agenda On a motion by Pastor, supported by Scheel, and unanimously adopted, it #203-15 WHEREAS, the Commission of the Municipal Building Authority of Livonia (the "Authority") has undertaken or will shortly undertake proceedings to refund all or a portion of the Authority's Building Authority Refunding Bonds, Series 2005, dated June 22, 2005 (the "Prior Bonds"), and WHEREAS, such refunding will result in lower costs to the City of Livonia (the "City") for the use of the facilities leased to the City; and WHEREAS, a refunding contract between the City and the Authority (the "Refunding Contract") has been prepared respecting said refunding, and WHEREAS, it is necessary that the City undertake and make certain covenants and representations respecting the Authority's proposed issuance of refunding bonds to refund the Prior Bonds (the "Refunding Bonds") NOW, THEREFORE, BE IT RESOLVED THAT 1 The City shall, to the extent permitted by law, take all actions within its control necessary to maintain the exclusion of the interest on the Authority's refunding 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 expenditure and investment of bond proceeds and moneys deemed to be bond proceeds, and to prevent the Authority's refunding bonds from being or becoming "private activity bonds" as that term is used in Section 141 of the Code 2 The City hereby authorizes the Authority to prepare and circulate a preliminary and final official statement in connection with the refunding bonds and, if applicable, further authorizes the Mayor, Clerk, Finance Director, or Treasurer to execute such official statements on behalf of the City 3 The Mayor, Clerk, Finance Director, and Treasurer of the City are hereby authorized to execute and certificates on behalf of the City necessary for the issuance of such refunding bonds 4 The City hereby covenants to comply with Securities and Exchange Commission Rule 15c2-12 (the "Rule") and shall enter into an undertaking 39447 Regular Meeting Minutes of July 8, 2095 for the benefit of the holders and beneficial owners of the Authority's refunding bonds (the "Undertaking") In connection therewith, the Mayor and Finance Director are each hereby authorized to execute and deliver the Undertaking prior to the delivery of the Refunding Bonds 5 The Refunding Contract shall be dated such date as may be appropriate and the same in substantially the form attached hereto as Exhibit A, is hereby approved The Mayor and Clerk are hereby directed to execute and deliver said contract on behalf of the City The Refunding Contract shall become effective immediately upon execution and delivery by the City and the Authority 6 The City Council does hereby ratify and confirm its covenant in the Refunding 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 obligations under the Refunding Contract shall be subject to applicable constitutional, statutory and charter tax rate limitations 7 All resolutions and parts of resolutions insofar as the same conflict with the provisions of this Resolution be and the same hereby are rescinded EXHIBIT A REFUNDING CONTRACT THIS CONTRACT, made and entered into as of the 8th day of July 2015, under the provisions of Act 31, Public Acts of Michigan, 1948 (First Extra Session), as amended (the "Act") and Act 34, Public Acts of Michigan, 2001, as amended, ("Act 34") (the Act and Act 34 collectively, the "Acts") by and among the MUNICIPAL BUILDING AUTHORITY OF LIVONIA, a public corporation organized and existing under the authority of the Act (the "Authority"), and the CITY OF LIVONIA, County of Wayne, 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 the Act for the purpose of acquiring, furnishing, equipping, owning, improving, enlarging, operating and maintaining a building or buildings, automobile parking lots or structures, recreational facilities, stadiums, and the necessary site or sites therefor, together with appurtenant properties and facilities necessary or convenient for the effective use thereof, for use for any legitimate public purpose of the City; and 39448 Regular Meeting Minutes of July 8, 2015 WHEREAS, the City and the Authority previously entered into a Limited Tax Full Faith and Credit General Obligation Contract of Lease, dated February 25, 1998, a Limited Tax Full Faith and Credit General Obligation Contract of Lease, dated August 16, 2000, and a Limited Tax Full Faith and Credit General Obligation Contract of Lease Supplement, dated February 7, 2001 (collectively, the "Contracts") wherein the Authority agreed to acquire public facilities and lease said facilities to the City; and WHEREAS, the Authority issued bonds pursuant to the Contracts, designated 1998 Building Authority Bonds, dated May 1, 1998 (the "1998 Bonds"), 2000 Building Authority Bonds, dated October 1, 2000 (the "2000 Bonds"), and 2001 Building Authority Bonds, dated April 1, 2001 (the "2001 Bonds") (the 1998 Bonds, the 2000 Bonds, and the 2001 Bonds collectively, the "Prior Refunded Bonds"), and WHEREAS, the City and the Authority entered into a Refunding Contract, dated as of May 11, 2005 (the "2005 Contract"), wherein the Authority agreed to refund the Prior Refunded Bonds, and WHEREAS, pursuant to the 2005 Contract, the Authority issued the Building Authority Refunding Bonds, Series 2005, dated June 22, 2005 (the "Prior Bonds"), and WHEREAS, the Authority and the City have been advised that conditions in the bond market have now improved to the point that all or a portion of the Prior Bonds could be refunded at a savings, and WHEREAS, it is the determination and judgment of the Authority and the City that all or a portion of the Prior Bonds should be refunded (the "Refunding") to secure for the City the interest savings anticipated and thereby permit the operation of the financed facilities in a more economical fashion for the benefit of the users of the facilities and the taxpayers of the City; and WHEREAS, the execution of this contract (the "Refunding Contract") is necessary in order to implement a refunding program, NOW, THEREFORE, in consideration of the premises and the covenants of each other, the parties hereto agree as follows Regular Meeting Minutes of July 8, 2015 The Authority and the City hereby approve and confirm the Refunding under the provisions of the Acts in the manner provided by and pursuant to L this Refunding Contract. 2 The Authority will issue a single series of refunding bonds (the "Refunding Bonds") in a total principal amount not to exceed $2,250,000 in order to pay all or part of the costs of the Refunding All costs of the Refunding and of issuing the Refunding Bonds, including, but not limited to, payment of the principal of and interest on the Prior Bonds, underwriting discount, bond and other printing, administrative, legal and financial advisory expenses, credit enhancement costs, rating fees, trustee and paying agent/registrar fees and all related expenses shall be paid from the proceeds of sale of the Refunding Bonds or from cash amounts to be made available by the City to pay such costs 3 To carry out and accomplish the Refunding in accordance with the provisions of Michigan law, the Authority shall take the following steps (a) The Authority will adopt a resolution providing for the issuance of the Refunding Bonds in an aggregate principal amount not to exceed $2,250,000 (the "Refunding Bond Resolution"), such resolution to be substantially in the form attached hereto and based upon the Authority's analysis of the financial benefits of the Refunding The Refunding Bonds shall mature serially or be subject to mandatory sinking fund redemption, as authorized by law, and will be issued in anticipation of the debt service installment payments required to be made by the City as provided in the Contracts and as hereinafter provided in this Refunding Contract and will be secured primarily by the contractual obligations of the City to pay said installments when due, including interest. After due adoption of the Refunding Bond Resolution, the Authority will take all legal procedures and steps necessary to effectuate the sale and delivery of the Refunding Bonds (b) The Authority, upon receipt of proceeds of sale of the Refunding Bonds, will comply with all provisions and requirements of law, the Refunding Bond Resolution and this Refunding Contract relative to the disposition and use of the proceeds of sale thereof (c) The Authority shall not make any investments or take any other actions which would cause the Refunding Bonds herein authorized to be constituted as arbitrage bonds pursuant to any applicable federal statutes or regulations (d) The Authority shall take all steps necessary to refund the Prior Bonds 39450 Regular Meeting Minutes of July 8, 2015 4 The full principal amount of the Refunding Bonds shall be charged to and paid by the City to the Authority in annual principal installments, together with interest and other expenses as herein provided It is understood and agreed that the Refunding Bonds of the Authority will be issued in anticipation of such payments by the City It is agreed that the City shall pay to the Authority, at least one business day prior to the annual maturity or mandatory redemption date of principal amounts of the Refunding Bonds, such principal amount, and in addition, at least one business day prior to each interest payment date on the Refunding Bonds, as accrued interest on the principal installments remaining unpaid, an amount sufficient to pay all interest due on the next succeeding interest payment date From time to time as the Authority is billed by the registrar/transfer/paying agent for the Refunding Bonds for their services, and as other costs and expenses accrue to the Authority from handling of the payments made by the City or from other action taken in connection with the Refunding Bonds, the Authority shall notify the City of the amount of such fees, costs and expenses, and the City shall, within thirty (30) days from such notification, remit to the Authority sufficient funds to pay such amounts The Authority shall, within thirty (30) days after the delivery of the Refunding Bonds, furnish the City with a complete schedule of said installments and the interest thereon and due dates and shall also, at least thirty (30) days prior to each due date, advise the City, in writing, of the exact amount due on the next due date The failure to give such notice shall not, however, excuse the City from making required payments when due under the provisions hereof 5 The City, pursuant to Section 8a of the Act and pursuant to Act 34, hereby irrevocably pledges its full faith and credit for the prompt and timely payment of its obligations pledged for payment of the Refunding Bonds as expressed in this Refunding Contract. Pursuant to such pledge, if other funds are not available, the City shall be required to pay such amounts from any of its general funds as a first budget obligation and shall each year levy an ad valorem tax on all the taxable property in the City in an amount which, taking into consideration estimated delinquencies in tax collections, will be sufficient to pay such obligations under this Refunding Contract becoming due before the time of the following year's tax collections, such annual levy shall however be subject to applicable constitutional, statutory and charter tax rate limitations Commitments of the City are expressly recognized as being for the purpose of providing funds to meet the respective contractual obligations of the City in anticipation of which the Refunding Bonds are issued Nothing herein contained shall be construed to prevent the City from 39451 Regular Meeting Minutes of July 8, 2015 using any, or any combination, of the means and methods provided in Section 8a of the Act for the purpose of providing funds to meet its obligations under this Refunding Contract, and if at the time of making the 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 annual tax levy may be reduced by such amount. 6 Additional moneys over and above any of the payments specified in this Refunding Contract may be prepaid as provided in this Refunding Contract. 7 All provisions of the Contracts not inconsistent herewith, and particularly all covenants relative to the payment of and security for the Prior Bonds made by the City therein, shall remain in full force and effect and shall apply with equal effect to the Refunding Bonds authorized hereby, it being understood that upon issuance of the Refunding Bonds, all or any portion of the Prior Bonds refunded will be defeased and the Refunding Bonds shall be substituted therefor and shall be outstanding in their place and stead 8 Nothing herein contained shall in any way be construed to prevent additional financing under the provisions of the Act. 9 The obligations and undertakings of each of the parties to this Refunding Contract shall be conditioned upon the successful accomplishment of the proposed Refunding, and therefore if for any reason whatsoever the Refunding Bonds are not issued, then this Refunding Contract shall be considered void and of no force and effect; provided, however, that in such event, all costs and expenses shall be paid by the City in accordance with existing commitments to the Authority, and the Authority shall not be obligated for such costs and expenses 10 The Authority and the City each recognize that the holders from time to time of the Refunding Bonds will have contractual rights in this Refunding Contract, and it is therefore covenanted and agreed by each of them that so long as any of the Refunding Bonds shall remain outstanding and unpaid, the provisions of this Refunding Contract shall not be subject to any alteration or revision which would in any manner materially affect either the security of the Refunding Bonds or the prompt payment of principal of or interest thereon The City and the Authority further covenant and agree that they will each comply with their respective duties and obligations under the terms of this Refunding Contract promptly at all times and in the manner herein set forth, and will not suffer to be done any act which would in any way impair the Refunding Bonds, the security therefor, or the prompt 39452 Regular Meeting Minutes of July 8, 2015 payment of principal of and interest thereon It is hereby declared that the terms of this Refunding Contract insofar as they pertain to the security of the Refunding Bonds shall be deemed to be for the benefit of the holders of said Refunding Bonds 11 This Refunding Contract shall remain in full force and effect until the Refunding Bonds issued by the Authority are paid, at which time this Refunding Contract shall be terminated, and the provisions of the Contract relative to disposition of the financed facilities shall be carried out. In any event, the obligations of the City to make the payments required hereunder shall be terminated at such time as all of the Refunding Bonds are paid in full by the City, together with all interest and penalties and other obligations hereunder 12 This Refunding Contract shall inure to the benefit of and be binding upon the respective parties hereto, their successors and assigns IN WITNESS WHEREOF, the MUNICIPAL BULDING AUTHORITY OF LIVONIA, by its Commission, and the CITY OF LIVONIA, COUNTY OF WAYNE, MICHIGAN, 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 In the presence of, MUNICIPAL BUILDING AUTHORITY OF LIVONIA By - Chairman By - Secretary (Seal) CITY OF LIVONIA By - Mayor By. Clerk (Seal) 39453 Regular Meeting Minutes of July 8, 2015 STATE OF MICHIGAN )ss COUNTY OF WAYNE On this day of July, 2015, 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 on 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, MI My Commission Expires STATE OF MICHIGAN )ss COUNTY OF WAYNE On this day of July, 2015, before me appeared Jack Kirksey and Susan A. Hoff, to me personally known, who, being by me duly sworn, did, each for himself or herself, say that they are respectively the Mayor and Clerk of the CITY OF LIVONIA, County of Wayne, Michigan, a municipal corporation in the State of Michigan, and that said instrument was signed and sealed on behalf of the 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, MI My Commission Expires A roll call vote was taken on the foregoing resolution with the following result: AYES Toy, Scheel, Nash, Katzman, Pastor and Meakin NAYS None The Vice President declared the resolution adopted Regular Meeting Minutes of July 8, 2015 Pastor gave a reading to the following Ordinance AN ORDINANCE TO PROVIDE FOR THE ISSUANCE AND SALE OF REVENUE BONDS TO PAY THE COST OF REFUNDING FOR ALL OR PART OF THE CITY OF LIVONIA'S (A) WATER SUPPLY AND WASTEWATER REVENUE BONDS, SERIES 2005 AND (B) WATER SUPPLY AND WASTEWATER SYSTEM REVENUE REFUNDING BONDS, SERIES 2006 AND TO PROVIDE FOR OTHER MATTERS RELATING REFUNDING BONDS AND THE SYSTEM TO THE SYSTEM AND THE OUTSTANDING BONDS OF THE 39454 A roll call vote was taken on the foregoing resolution with the following result: AYES Toy, Scheel, Nash, Kritzman, Pastor and Meakin NAYS None The Vice President declared the resolution adopted There was no Audience Communication at the end of the meeting On a motion by Toy, supported by Nash, and unanimously adopted, this 1,780th Regular Meeting of the Council of the City of Livonia was adjourned at .4 I; Z'V-� 4 4 4 //J - Susan A. Hoff, City Cle