HomeMy WebLinkAboutCOUNCIL MINUTES 1955-05-12 ADJOURNED Page 1$70
MINUTES OF THE ADJOURNED ONE HUNDRED FORTY-SECOND REGULAR
MEETING OF THE COUNCIL OF THE CITY OF LIVONIA
On May 12, 1955, the above meeting was held at 33001 Five Mile Road,
Livonia, Michigan, and was called to order at approximately 9:16 P. M. Roll was
called with the following result; Present-- John T. Daugherty, David L. Jones,
Harry R. Killam, Rudolf R. Kleinert, John W. Whitehead, Nettie Carey and Wilson W.
Edgar. Absent-- None.
By Councilman Kleinert, seconded by Councilman Edgar and unanimously
adopted, it was
#253-55 RESOLVED that, pursuant to a Public Hearing having been
held on the Assessment Roll for the paving and improvements on Grandon
Avenue in Grandon Woods Subdivision, and the Council having considered
such Assessment Roll, and it further appearing that it will be necessary
to sell assessment bonds to install these improvements as set forth in
the report of the engineer; the City Clerk be and hereby is authorized
to negotiate with John Nunneley of the law firm of Miller, Canfield,
Paddock and Stone, for the purpose of preparing the necessary legal
documents in regard to the aforementioned Assessment Roll for the in-
stallation of such improvements, and that when the proper documents
have been prepared by said law firm, the same are to be presented to
the City Council for further action according to law.
Mr. John Nunneley of Miller, Canfield, Paddock and Stone; Mr. Louis
Schimmel of the Municipal Advisory Council; Mr. Campbell and Mr. Cushman of the
Wayne County Road Commission were present and discussed with the Council an
amendment to Ordinance No. 98. Mr. 'dilliam Bleakly of Shelden Land Company and
Mr. Leonard Farber, attorney for Rose Hill Builders, also appeared before the
Council in this matter.
After considerable discussion, the matter of amending Ordinance No. 98
was delayed to an adjournment of this meeting which will be held on Tuesday, May
17, 1955, at 8:00 P. M.
Councilman Killam was excused from the meeting at 11:45 P. M.
The City Clerk, Marie W. Clark, presented to the Council a proposed
resolution and notice of sale for the purpose of borrowing funds on tax
anticipation notes.
Page 1871
Councilman Whitehead, seconded by Councilman Kleinert, it was
resolved tE:art
#254-55 WHEREAS, it is hereby determined that it is necessary to borrow
the sum of :,200,000.00 in anticipation of the collection of the OPERATING
TAXES for the NEXT SUCCEEDING FISCAL YEAR ending November 30, 1956, which
taxes are first due and payable on December 1, 1955, for the purpose of
obtaining funds to meet current operating expenses; and
WHEREAS, Act No. 202 of the Public Acts of 1943 authorizes the
borrowing of money in anticipation of the collection of the unpaid tax
for the next succeeding fiscal year fer such operating expenses as could
not reasonably have been foreseen and adequately provided for in the
current fiscal year's tax; and
WHEREAS, said expenses were not foreseen and adequately pro-
vided for in the tax levy for the current fiscal year, but is a necessary
operating expense; and
WHEREAS, outstanding loans against the operating taxes for the
next secceeding fiscal year are none; and
WHEREAS, the operating tax levy for the next succeeding fiscal
year has not been determined;
NOW THEREFORE BE if RESOLVED, that the City of Livonia borrow
for the above purpose the sum of 4200,000.00, or such part thereof as the
Municipal Finance Commission may authorize, and issue the notes of the
City of Livonia therefor in anticipation of the collection of the operat-
ing taxes for the next succeeding fiscal year ending November 30, 1956; and
BE Tr FURTHER RESOLVED, that the City Clerk be and she is hereby
authorized to make application to the Municipal Finance Commission for and
on behalf of the City of Livonia for an order permitting this City of
Livonia to borrow $200,000.00 and issue its rotes therefor as aforesaid;
and
BE IT FURTHER RESOLVED, that said notes bear interest at not to
exceed three (3%) per cent per annum, be dated June 1, 1955 and be due and
payable May 1, 1956 which is the estimated time of collection of a suf-
ficient amount of the operating taxes for the next succeeding fiscal year
to pay the notes in full; and
BE IT FURTHER RESOLVED, that irrevocably a tax be and hereby
is levied for the fiscal year ending November 30, 1956 for the payment
of operating expenses for such year, sufficient for the repayment of such
loan from the receipts of such taxes, and such receipts are irrevocably
pledged for the repayment of such loan.
BE IT FURTHER RESOLVED, that hereafter from the first collections
of the taxes for the next succeeding fiscal year there be set aside in a
special fund that percentage of such collections which the tax levied for
operating bears to the total tax levy, said funds to be used for the pay-
Page 1872
ment of the principal of and interest on said notes, and until the amount
so set aside shall be sufficient for such payments, collections of such
taxes shall be used for no other purpose.
HF; IT FURTHER RESOLVED, that the said notes shall be payable in
lawful money of the United States of America at such bank or trust company
in the State of i ichigan as shall be designated by the original purchaser.
BE rr FURTHER RESOLVED, that the Mayor and City Clerk of the City
of Livonia be and they are hereby authorized and directed to execute said
notes for and on behalf of the City of Livonia and that upon the execution
of said notes the same shall be delivered to the Treasurer of the City of
Livonia who is hereby authorized and directed to deliver said notes to the
purchaser thereof, upon the receipt of the purchase price therefor.
BE IT FURTHER RESOLVED, that such notes be sold at public sale,
the notice thereof to be in substantially the following form and that a
copy be submitted to the Municipal Finance Commission for approval before
publication;
NOTICE OF SALE
$ 200,000.00
City of Livonia, Wayne County, Michigan
NOTES
Sealed bids for the purchase of tax anticipation notes of
City of Livonia, Michigan, of the par value of $200,000.00 will be
received by the undersigned at 33001 Five Mile Road, Livonia, Mica igan,
until 8:00 o'clock P. M., Eastern Standard Time, on the day
of , 1955, at which time and place they will be
publicly opened and read.
The notes will be dated June 1, 1955, will mature May 1, 1956
and will bear interest at a rate or rates not exceeding three (3%) percent per
annum. Both principal and interest will be payable at the option of the
purchaser. Denominations and farm of notes to be at the option of the
purchaser. Accrued interest to date of delivery of such notes must be
paid by the purchaser at the time of delivery.
For the purpose of awarding the notes the interest cost of
each bid will be computed by determining, at the rate or rates specified
therein, the total dollar value of all interest on the notes from
to their maturity and deducting therefrom
any premium. The notes will be awarded to the bidder whose bid on the
above computation produces the lowest interest cost to the City of
Livonia. No proposal for the purchase of less than all of the notes
or at a price less than their par value will be considered.
The loan is in anticipation of the 1955 tax.
Envelopes containing the bids should be plainly marked "Proposal
for Notes".
Page 1873
A certified or cashier's check in the amount of twro (2%) per
cent of the par value cf the notes, drawn upon an incorporated bank or
trust company and payable to the order of the Treasurer of the City of
Livonia must accompany each bid as a guarantee of good faith on the part
of the bidder. Checks of unsuccessful bidders will be promptly returned.
Bids shall he conditioned upon the unnualified opinion of the
purchaser's attorney approving the legality of the notes, to be secured
at the purchaser's expense. The purchaser shall furnish notes ready for
execution at his expense. Notes will be delivered at Detroit, Michigan.
The right is reserved to reject any and all bids.
Marie W. Clark, City Clerk
BE IT FURTHER RESOLVED, that upon receipt of said approval, the
City Clerk be and she hereby is authorized to determine and fix the time
of receiving bids for the purchase of said notes; the date from which
interest will be computed in awarding them, to insert such time and date
in the notice of sale; and to publish the approved form not less than
seven days prior to the date so fixed for receiving bids in the Livonian
and in the Michigan Investor.
A roll call vote was taken on the foregoing resolution with the following result:
AYES: Jones, Kleinert, Whitehead, Carey, Edgar and Daugherty.
NAYS: None.
By Councilman Kleinert, seconded by Councilman Edgar, it was
#255-55 RESOLVED that
WHEREAS, the Council of the City of Livonia now having noted
the opinion of the Court in the cause entitled "Wayne CouOty Circuit
Court No. 276,987 - Donald viilson, Plaintiff vs. Elbert M. Hartom,
Mayor of the City of Livonia, Hugh J. Wood, Jr., and the City of Livonia,
a municipal corporation, jointly and severally, Defendants", and also
having noted the order and judgment of said Court entered in said cause
on April 26, 1955; and
WHEREAS, the Council has newr authorized Elbert M. Hartom,
as Mayor of Livonia or Russell C. Ashmore, as City Attorney of Livonia,
to contest or oppose the action of Donald Wilson as plaintiff in the
above entitled cause; and as the Council has never in any way ratified
the conduct of said Elbert M. Hartom, Mayor and Russell C. Ashmore, City
Attorney, in contesting or opposing the action of said Donald Wilson; and
WHEREAS, the Council has never made appropriation of money or
designated any fund whatsoever to pay any costs, expenses or attorney's
fees incurred by any of the defendants in the above entitled cause; and
WHEREAS, the Council has never authorized the City Attorney
Page 1874
,
or the Mayor t(11
file a motion for a new trial in said cause, or to
make an appeal rom said order and judgment, or to take any further
proceedings whatsoever in connection with said cause.
RE IT NOW HEREBY RESOLVED, that it is the sense and position
of this Council that the City of Livonia and Elbert M. Hartom, as Mayor
of the City of Livonia, take no further proceeding in connection with
said cause except to immediately comply with the order and judgment of
said Court as entered in said cause on April 26, 1955, and
BE IT FURTHER RESOLVED, that the City Clerk be and hereby is
directed to forward a certified copy of this resolution to the Court.
A roll call vote was taken on the foregoing resolution with the following result:
AYES: Kleinert, Whitehead, Carey, Edgar and Daugherty.
NAYS: Jones.
The President declared the resolution adopted.
The Mayor read a request from the Police Department dated May 12, 1955.
Mr. Banks of the Michigan Racing Commission arpeared before the Council in this
matter.
LBy Councilman Kleinert, seconded by Councilman Jones and unanimously
adopted, it was
#256-55 RESOLVED, that the request of the Police Department dated
May 12, 1955, for additional funds, be tabled until Tuesday, May 17,
1955.
On motion of Councilman Kleinert, seconded by Councilman Whitehead, and
unanimously adopted, this adjourned 142nd regular meeting of the City Council Was
duly adjourned to May 17, 1955, at 8:00 P. M., the time of this adjournment being
1:15 A. M. , May 13, 1955.
Ma 7 -"--,_e,b 7,a • -• 1. 1:...f:-e/--e-IA---7,--—
d. Clark, City Clerk
Attested:
, ��. ► �.
laugherty, President of t: ouncil
14.1 / ide...4,a,r
Rudolf ! ' Kleinert, Vice President of the Council