Loading...
HomeMy WebLinkAboutCOUNCIL MINUTES 1975-11-05 SPECIAL 15277 MINUTES OF THE ONE HUNDRED SIXTY-FIRST SPECIAL MEETING OF THE COUNCIL OF THE CITY OF LIVONIA Pursuant to the provisions of Section 8, Chapter IV of the City Charter, the above meeting was held November 5, 1975, at the City Hall, 33001 Five Mile Road, Livonia, Michigan, and was called to order by the President of the Council at approx- imately 8:30 P. M . Roll was called with the following result: Present--Robert F. Nash, Robert R Bishop, Peter A. Ventura, Jerry Raymond, Jerry H. Brown and Robert D. Bennett. Absent--Robert E. McCann. Elected and appointed officials present: Edward H. McNamara, Mayor; Addison W. Bacon, City Clerk, Harry C Tatigian, City Attorney; Jack Dodge, Director of Finance; Ronald Mardiros, City Assessor, and Michael McGee, Administrative Assist- ant to the Mayor. The following preamble and resolution were offered by Councilman Ventura and supported by Councilman Raymond: #894-75 WHEREAS, by Resolution #814-75, the City Council on October 8, 1975 awarded the City's $750,000 1975 Special Assessment Bonds (the "Bonds") to National Bank of Detroit, Detroit, Michigan; said Bank submitting the bid which produced the lowest interest cost to the City, and WHEREAS, on October 29, 1975, the City was formally notified that litigation had been commenced in the Wayne County Circuit Court in- volving a special assessment district contained in the Bonds, and WHEREAS, because of such litigation, the City is unable to execute a Non-Litigation Certificate respecting the Bonds or to deliver the Bonds to said National Bank of Detroit in conformity with the Official Notice of Sale for the Bonds; and WHEREAS, it is necessary to rescind the award of the Bonds to National Bank of Detroit and to return the good faith check of $15,000.00 submitted by said Bank; NOW, THEREFORE, BE IT RESOLVED THAT. 1. The award of the Bonds to National Bank of Detroit is hereby rescinded. 2. The City Clerk or City Treasurer is hereby directed to return the good faith check referred to above to National Bank of Detroit by registered mail. 15278 3. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded. A roll call vote was taken on the foregoing resolution with the following result. AYES: Bishop, Ventura, Raymond, Brown, Bennett and Nash. NAYS: None. The following preamble and resolution were offered by Councilman Bishop and supported by Councilman Bennett• #895-75 WHEREAS, Special Assessment Rolls, more particularly hereinafter described, for the construction of street improvements in the City of Livonia have been prepared, reviewed and confirmed by .the City Council, and WHEREAS, the City Council deems it to the best interest to borrow and issue bonds in anticipation of the collection of said special assess- ments to defray part of the cost of said street improvements, NOW, THEREFORE, BE IT RESOLVED THAT• 1. The estimated period of usefulness of said public improvements is not less than twenty (20) years. 2. Special Assessment Bonds be issued in the amount of Six Hundred Fifty Thousand ($650,000.00) Dollars in anticipation of the collec- tion of Seven Hundred Eighteen Thousand Three Hundred Fifty-Six ($718,356.00) Dollars of special assessments on the special assessment rolls hereinafter in this Paragraph 2 set forth, the principal amount of special assessment for each roll pledged for the payment of said bonds to be as follows for the following districts• Special Assessment District No. 118 $ 6,430.00 Special Assessment District No. 121 15,504.00 Special Assessment District No. 123 12,765.00 Special Assessment District No. 124 45,603.00 Special Assessment District No. 125 59,394.00 Special Assessment District No. 126 13,842.00 Special Assessment District No. 129 31,954.00 Special Assessment District No. 132 61,609.00 Special Assessment District No. 134 24,414.50 Special Assessment District No. 136 47,000.00 Special Assessment District No. 138 9,512.50 Special Assessment District No. 139 57,495.50 Special Assessment District No. 140 306,223.00 Special Assessment District No. 142 6,865.00 Special Assessment District No. 145 19,744.50 15279 In addition to the special assessments as aforesaid, the full faith, credit and resources of the City of Livonia shall be pledged for the prompt pay- ment of the principal and interest on said bonds as the same become due. The bonds shall consist of one hundred thirty (130) bonds of the denomina- tion of $5,000.00 each, numbered consecutively in direct order of maturity from 1 to 130, inclusive, dated November 1, 1975, and payable serially, without option of prior redemption, as follows $50,000.00 February 1st of each of the years 1976 and 1977, $75,000.00 February 1st of each of the years 1978, 1979 and 1980, $50,000.00 February 1, 1981, $75,000.00 February 1st of each of the years 1982, 1983 and 1984, $50,000.00 February 1, 1985 Said bonds shall be designated 1975 SPECIAL ASSESSMENT BONDS. Said Bonds may be registered as to principal only, in the manner and with the effect set forth on the face thereof, as hereinafter provided. 3. The bonds authorized by the provisions of this Resolution shall bear interest at a rate or rates not exceeding eight per cent (8%) per annum, payable on February 1, 1976, and semi-annually thereafter on August 1st and February 1st of each year. Both principal and interest on said bonds shall be payable at a bank or trust company qualified to act as paying agent designated by the purchaser of the bonds, with the approval of the City Clerk. The liability of each special assessment district shall be limited to the principal amount set forth above and interest thereon. Interest on said bonds from November 1, 1975 to December 1, 1975 shall be capitalized and paid from the proceeds of the bonds. 4. The bonds shall be signed in the name of the City by the Mayor and countersigned by the City Clerk, and the City Treasurer and shall bear the City seal, and the interest coupons annexed thereto shall bear the facsimile signatures of the Mayor and City Treasurer. The bonds, when executed, shall be delivered to the Treasurer and be delivered by him to the purchaser thereof upon payment of the purchase price thereof in accord- ance with the bid therefor, when accepted. 5. There shall be established and maintained a fund to be designated "1975 Special Assessment Bonds Debt Retirement Fund". Into said fund there shall be placed the accrued interest and premium, if any, received at the time of delivery of the bonds, plus a sum from the proceeds of the bonds, which, taken together with said accrued interest and premium will be sufficient to pay interest on the bonds from November 1, 1975 to December 1, 1975. All collections of principal and interest on the aforesaid special assessment rolls shall be placed in said fund for the sole purpose of retiring when due the principal of and interest on said special assess- ment bonds. In addition, the City shall levy annually, without limitation as to rate or amount, as part of its general ad valorem taxes, such sums as may be necessary to retire when due the principal of and interest on special assessment bonds should collections of the special assessments pledged for that purpose prove insufficient. 15280 Said bonds and the attached coupons shall be in substantially the following form UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF WAYNE CITY OF LIVONIA 1975 SPECIAL ASSESSMENT BOND No. $5,000.00 KNOW ALL MEN BY THESE PRESENTS that the CITY OF LIVONIA, County of Wayne, State of Michigan, acknowledges itself to owe and for value received hereby promises to pay to the bearer, or if registered, to the registered holder hereof the sum of FIVE THOUSAND DOLLARS lawful money of the United States of America, on the first day of February, A. D., 19 , with interest thereon from the date hereof until paid at the rate of per cent ( %) per annum, payable on February 1, 1976, and semi-annually thereafter on the first day of August and February of each year upon presentation and surrender of the annexed interest coupons as they severally become due. Both principal of and interest on the bonds are payable at the principal office of , and for the prompt payment of this bond, both principal and interest, the°full faith and credit of the City of Livonia is hereby irrevocably pledged. This bond is one of a series of one hundred thirty (130) bonds of even date and like tenor, except as to rate of interest and date of maturity, aggregating the principal sum of $650,000, issued in anticipa- tion of the collection of special assessments in certain Special Assessment Districts in the City, for the purpose of constructing street improvements, and is issued in accordance with the City Charter and with a duly adopted resolution of the City Council of the City of Livonia. Bonds of this issue shall not be subject to redemption prior to maturity. This bond is payable out of special assessments to be collected on special assessment rolls numbered in accordance with the above districts or in the case of insufficiency of said special assessments out of the general funds of the City. The liability of each special assessment district shall be limited to payment of the amounts and interest thereon as set forth in the bond resolution. 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, exist and have happened in regular and due time and form as required by law, and that the total indebtedness of said City, including this bond, does not exceed any constitutional, statutory or charter debt limitation. 15281 This bond may be registered as to principal only on the books of the paying agent in the name of the holder and said registration noted on the back hereof by said paying agent, after which no transfer shall be valid unless made on the books and noted hereon in like manner, but transferabili- ty by delivery may be restored by registration to bearer. Such registra- tion shall not affect the negotiability of the interest coupons. IN WITNESS WHEREOF, the CITY OF LIVONIA, County of Wayne, State of Michigan, by its City Council, has caused this bond to be signed by its Mayor and to be countersigned by its City Clerk and City Treasurer and its corporate seal to be hereunto affixed, and has caused the annexed interest coupons to be executed with the facsimile signatures of its Mayor and City Treasurer, all as of the first day of November A. D. 1975. CITY OF LIVONIA By Mayor (SEAL) Countersigned City Clerk City Treasurer REGISTRATION NOTHING TO BE WRITTEN HEREON EXCEPT BY THE PAYING AGENT Date of Registration Name of Registered Holder Registrar (Form of Coupon) No. $ On the first day of , A.D., 19 , the CITY OF LIVONIA, County of Wayne, State of Michigan, will pay to the bearer hereof, the sum shown hereon at being the interest tiro due that date on its 1975 Special Assessment Bond, dated November 1, 1975, Mayor City Treasurer 15282 6. The City Clerk shall make application to the Municipal Finance Commission for an order granting permission for the issuance of said bonds and approval of the form of notice of sale, and upon receipt of such approval, the City Clerk shall cause notice of sale of said bonds to be published in The Bond Buyer, New York, New York, and in the Observer- Eccentric, a newspaper circulated in the City of Livonia, Michigan, at least seven (7) full days before the date fixed for sale of said bonds, which notice of sale shall be in substantially the following form OFFICIAL NOTICE OF SALE $650,000 00 CITY OF LIVONIA COUNTY OF WAYNE, STATE OF MICHIGAN 1975 SPECIAL ASSESSMENT BONDS SEALED BIDS for the purchase of the above bonds will be received by the undersigned at the City Hall located at 33001 Five Mile Road, Livonia, Michigan 48154, on , the day of 19 , until o'clock .m. , Eastern Standard Time, at which time and place said bids will be publicly opened and read. BOND DETAILS: Said bonds will be coupon bonds, registrable as to principal only, of the denomination of $5,000 00 each, dated November 1, 1975, numbered in direct order of maturity from 1 upwards and will bear interest from their date payable on February 1, 1976, and semi-annually thereafter. Said bonds will mature on the 1st day of February, as follows $50,000 00 1976 and 1977 $75,000.00 1978, 1979 and 1980, $50,000 00 1981, $75,000.00 1982, 1983 and 1984, $50,000 00 1985. PRIOR REDEMPTION Bonds of this issue are not subject to prior redemption. IN'?EREST RATE AND BIDDING DETAILS The bonds shall bear interest at a rate or rates not exceeding 8% per annum, to be fixed by the bids therefor, expressed in multiples of 1/8 of 1/20 of 1%, or both The interest on any one bond shall be at one rate only, all bonds maturing in any one year must carry the same interest rate and each coupon period shall be represent- ed by one interest coupon The difference between the highest and lowest interest rate on the bonds shall not exceed two (2%) per cent per annum. No proposal for the purchase of less than all of the bonds or at a price less than 100% of their par value will be considered. PAYING AGENT• Both principal and interest shall be payable at a bank or trust company located in Michigan qualified to act as paying agent under 15283 State or United States law, to be designated by the original purchaser of the bonds, who may also designate a co-paying agent, which may be located outside of Michigan, qualified to act as paying agent under the law of the State in which located or of the United States, both of which shall be subject to approval of the undersigned. PURPOSE AND SECURITY The bonds are issued in anticipation of the collection of special assessments for street improvements in certain special assess- ment districts in said City, as set forth in the bond authorizing resolu- tion. The special assessments and interest thereon are sufficient to pay the principal and interest on the bonds as when due. The liability of each special assessment district is limited as set forth in the bond authorizing resolution. The bonds will pledge the full faith and credit of the City of Livonia as additional security for payment of the principal and interest thereon. GOOD FAITH A certified or cashier's check in the amount of $13,000.00, drawn upon an incorporated bank or trust company and payable to the order of the Treasurer of the City must accompany each bid as guarantee of good faith on the part of the bidder, to be forfeited as liquidated damages if such bid be accepted and the bidder fails to take up and pay for the bonds. No interest shall be allowed on the good faith checks and checks of the unsuccessful bidders will be promptly returned to each bidder's representa- tive or by registered mail. AWARD OF BONDS The bonds will be awarded to the bidder whose bid produces the lowest interest cost computed by determin, .gpt the rate or rates specified in the bid, the total dollar value of all interest on the bonds from , 19 to their maturity and deducting therefrom any premium. LEGAL OPINION: Bids shall be conditioned upon the unqualified approving opinion of Miller, Canfield, Paddock and Stone, 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. DELIVERY OF BONDS• The City will furnish bonds ready for execution at its expense. Bonds will be delivered without expense to the purchaser at Detroit, Michigan, Chicago, Illinois or New York, New York. 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 the delivery of the bonds. If the bonds are not tendered for delivery by twelve o'clock noon, 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 there- after until delivery of the bonds, withdraw his proposal by serving notice of cancellation, in writing, on the undersigned in which event the City shall promptly return the good faith deposit. Payment of 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: CUSIP numbers will be applied for at the issuers expense. Improper imprintation of or failure to imprint CUSIP numbers shall not constitute grounds for refusal to receive delivery of the bonds. 15281+ THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS. ENVELOPES containing the bids should be plainly marked "Proposal for Special Assessment Bonds. " Clerk, City of Livonia APPROVED STATE OF MICHIGAN MUNICIPAL FINANCE COMMISSION 7. All resolutions and parts of resolutions insofar as they conflict with the provisions of this Resolution be and the same hereby are rescinded. A roll call vote was taken on the foregoing resolution with the following result: AYES: Bishop, Ventura, Raymond, Brown, Bennett and Nash. NAYS• None. On motion of Councilman Ventura, seconded by Councilman Bishop, and unanimously adopted, this 161st Special Meeting of the Council of the City of Livonia was duly adjourned at 8.1+0 P. M., November 5, 1975. • • ADDISON W. ZSiCity clerk.