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HomeMy WebLinkAboutCOUNCIL MINUTES 2014-06-0239057 MINUTES OF THE ONE THOUSAND SEVEN HUNDRED AND FIFTY-FOURTH REGULAR MEETING OF JUNE 2, 2014 On June 2, 2014, the above meeting was held at the City Hall, 33000 Civic Center Drive, Livonia, Michigan, and was called to order by the President of the Council at 7:00 p.m. Councilmember Kritzman led the meeting the Pledge of Allegiance. Roll was called with the following result: Brandon Kritzman, John Pastor, Brian Meakin, Laura Toy, Lynda Scheel, Susan Nash, and Maureen Miller Brosnan. Absent: None. Elected and appointed officials present: Mark Taormina, City Planner; Todd Zilincik, City Engineer; Judy Priebe, Technical Specialist; Terry Marecki, City Clerk; Don Knapp, City Attorney; and Mayor Jack Kirksey. it was: On a motion by Pastor, seconded by Kritzman, and unanimously adopted, #158-14 RESOLVED, that the Minutes of the 1,753rd Regular Meeting of the Council held May 19, 2014, are hereby approved as submitted. Vice President Meakin extended Birthday wishes to his son Brendon and also to his wife Colleen. Toy congratulated Sister Carolyn from St. Michaels School on her retirement and wished her well. She has been an asset to St. Michaels and also to the community. Toy also expressed her thanks to the many City employees for sponsoring Jean Day Friday's. All proceeds collected from the Jean Day's go to various charities. Nash congratulated the many seniors graduating at this time of year from high school and college. She said to have fun and make us proud in your future endeavors. President Brosnan thanked the Mayor and the staff for organizing the Memorial Day celebration that was held at the corner of Five Mile and Farmington. It is always a very well -orchestrated and meaningful event. �C•1 Regular Meeting Minutes of June Z 2014 Mayor Kirksey explained that the beautiful hanging baskets that have been placed on the light poles on Farmington Road and Five Mile Road around the City Campus, have been paid for by funds raised by the 16th District Court. This has been coordinated by Judge McCann and Judge Kavanagh and no tax dollars have been used. They are a nice addition to the City. Mayor Kirksey announced that they are starting to engrave the bricks for Nehasil Park. There will be a dedication of the park sometime in August, at a date to be announced later. Bricks are still available for purchase to help fund this project. Call the Mayor's office for more information. The Mayor reported that construction on 196 is proceeding smoothly. It is not just a repaving project but a total remake of seven miles of the highway. They are on schedule for completion sometime in October 2014. He reminded the citizens that the businesses located along 196 are still open for business. It is important to support them through this shutdown. Some businesses have reported a loss of 20-40% of their business. They could be in danger of closing and he encouraged everyone to make a point to patronize the various businesses and show them your support. President Brosnan announced there would be a Public Hearing held on Wednesday, June 25, 2014, at 7:00 p.m. in the Auditorium of City Hall, 33000 Civic Center Drive, Livonia, Michigan. Charles L. Dardas, President, Chief Operating Officer of ALPHAUSA, requesting approval of an Exemption of Personal Property under PA 328 of 1998 in connection with the purchase of new equipment and machinery for their facility located at 32711 Glendale, Livonia, MI 48150. As well as transfer equipment from their location at 33375 Glendale and maintain the exemption which was approved on October 19, 2011, (CR 346-11) (Industrial Development Overlay District #109) There was no Audience Communication at the beginning of the meeting. President Brosnan announced there would be one X -item addressed at the end of the Agenda. On a motion by Scheel, seconded by Kritzman, it was: #159-14 RESOLVED, that having considered an application from Michael Kinney, 37629 Howell, dated May 5, 2014, requesting permission to close Howell between Blue Skies and Richfield, on Friday, July 4, 2014 from 12:00 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, July 5, 2014, in the event of inclement weather, the action taken herein being made subject to the approval of the Police Department. 39059 Regular Meeting Minutes of June Z 2014 #160-14 RESOLVED, that having considered a communication from the Mayor, dated May 5, 2014, the Council does hereby approve of and concur in the reappointment of Scott Bahr, 14416 Summerside, Livonia, Michigan 48154, to the City Planning Commission for a term of three years, which will expire on June 9, 2017. #161-14 RESOLVED, that having considered a communication from the Mayor, dated May 5, 2014, the Council does hereby approve of and concur in the reappointment of R. Lee Morrow, 37776 N. Laurel Park, Livonia, Michigan 48152, to the City Planning Commission for a term of three years, which will expire on June 9, 2017. #162-14 RESOLVED, that having considered a communication from the Mayor, dated May 5, 2014, wherein he has requested approval of the reappointment of Gerald Taylor, 36734 Sunnydale, Livonia, Michigan 48154, to the Economic Development Corporation of the City of Livonia Board of Directors for a six-year term expiring June 7, 2020, the Council does hereby confirm and approve such reappointment. #163-14 RESOLVED, that having considered the report and recommendation of the Director of Community Resources, dated April 15, 2014, which bears the signature of the Director of Finance and is approved for submission by the Mayor, the Council does hereby accept the bid of VTP, 41210 Bridge St., Novi, Michigan 48375, for the purchase and installation of the Tightrope Media Systems SX2HD Server and CG330-SDI Character Generator in order to provide compatibility with supported Microsoft operating systems for the total purchase price of $28,800.00, the same having been in fact the lowest bid received which meets all specifications; FURTHER, the Council does hereby authorize an expenditure in an amount not to exceed $28,800.00 from funds budgeted in Account No. 297-751-983-000 (Capital Outlay -Office Equipment) for this purpose; and the Mayor and City Clerk are hereby authorized to execute a contract 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. #164-14 RESOLVED, that having considered the report and recommendation of the Superintendent of Parks and Recreation, dated April 21, 2014, which bears the signature of the Director of Finance and is approved for submission by the Mayor, the Council does hereby accept the bid of Midwest Golf & Turf, 25125 Trans -X, Novi, Michigan 48375, for supplying the Department of Parks and Recreation (Golf Course Division) with one (1) Jacobsen LF510-Demo for the total price of $35,534.00, the same having been in fact the lowest bid received which meets specifications; FURTHER, the Council does hereby authorize the expenditure of a sum not to exceed $35,534.00 from funds already budgeted in Account No. 409-000-974-103 for this purpose. 39060 Regular Meeting Minutes of June Z 2094 #165-14 RESOLVED, that having considered a communication from the Human Resources Director, dated May 9, 2014, which bears the signature of the Director of Finance and is approved for submission by the Mayor, transmitting resolution #14-59 adopted by the Civil Service Commission at its regular meeting of April 16, 2014, recommending salary and fringe benefit adjustments for the classification of Police Command for the period December 1, 2013 through November 30, 2017, the Council does hereby concur with Civil Service Commission Resolution #14-59 and the salary and benefit adjustments for the classification of Police Command are hereby approved for the period December 1, 2013 through November 30, 2017. A roll call vote was taken on the foregoing resolutions with the following result: AYES: Kritzman, Pastor, Meakin, Toy, Scheel, Nash, and Brosnan NAYS: None The President declared the resolutions adopted. Pastor gave a reading to the following Ordinance: ORDINANCE NO 2963 AN ORDINANCE TO PROVIDE FOR THE ACQUISITION AND CONSTRUCTION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE WATER SUPPLY AND WASTEWATER SYSTEM OF THE CITY OF LIVONIA; TO PROVIDE FOR THE ISSUANCE AND SALE OF REVENUE BONDS TO PAY THE COST THEREOF; TO PRESCRIBE THE FORM OF THE 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 BONDS, TO PROVIDE FOR SECURITY FOR THE BONDS; TO PROVIDE FOR THE SEGREGATION AND DISTRIBUTION OF THE REVENUES; TO PROVIDE FOR THE RIGHTS OF THE HOLDERS OF THE BONDS IN ENFORCEMENT THEREOF; AND TO PROVIDE FOR OTHER MATTERS RELATING TO THE BONDS AND THE SYSTEM. THE CITY OF LIVONIA ORDAINS: 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. 39061 Regular Meeting Minutes of June 2, 2014 (b) "Adjusted Net Revenues" means for any operating year the excess of revenues over expenses for the System determined in accordance with generally accepted accounting principles, to which shall be added depreciation, amortization, interest expense on Bonds and payments to the Issuer in lieu of taxes, to which may be made the following adjustments. (i) Revenues may be augmented by the amount of any rate increases adopted prior to the issuance of additional Bonds or to be placed into effect before the time principal or interest on the additional Bonds becomes payable from Revenues as applied to quantities of service furnished during the operating year or portion thereof that the increased rates were not in effect. (ii) Revenues may be augmented by amounts which may be derived from rates and charges to be paid by new customers of the System. The adjustment of revenues and expenses by the factors set forth in (i) and (ii) above shall be reported upon by professional engineers or certified public accountants or other experts not in the regular employment of the Issuer. (c) "Authority" means the Michigan Finance Authority. (d) "Authorized Officers" means the Mayor, City Clerk, City Treasurer and the Director of Finance of the Issuer. (e) "Bonds" means the Series 2014 Bonds, together with the Outstanding Bonds and any additional bonds hereafter issued of equal standing with the Series 2014 Bonds. (f) "Engineers" means Orchard, Hiltz & McCliment, Inc., consulting engineers of Plymouth, Michigan. (g) "Issuer" means the City of Livonia, County of Wayne, State of Michigan. (h) "MDEQ" means the Michigan Department of Environmental Quality, or its successor agency. (i) "Outstanding Bonds" means the Series 2005 Bonds, the Series 2006 Bonds and the Series 2013 Bonds. Q) "Prior Ordinances" means Ordinances No. 2719 and 2945, authorizing the issuance of the Outstanding Bonds. (k) "Project" means the acquisition, construction, furnishing and equipping of additions, extensions and improvements to the City's Water Supply and Wastewater System, together with all necessary 39062 Regular Meeting Minutes of June 2, 2014 interests in land, rights of way and all appurtenances and attachments therefor, as described in the plans prepared by the Engineers and approved herein. (1) "Purchase Contract" means the Purchase Contract to be entered into between the Authority and the Issuer relating to the purchase by the Authority of the Series 2014 Bonds. (m) "Revenues" and "Net Revenues" means 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 Prior Ordinances and this Ordinance. (n) "Series 2005 Bonds" means the Issuer's Water Supply and Wastewater System Revenue Bonds, Series 2005, in the outstanding principal amount of $2,630,000. (o) "Series 2006 Bonds" means the Issuer's Water Supply and Wastewater System Revenue Refunding Bonds, Series 2006, in the outstanding principal amount of $3,095,000. (p) "Series 2013 Bonds" means the Issuer's Water Supply and Wastewater System Revenue Bonds, Series 2013, in the outstanding principal amount of $3,620,000. (q) "Series 2014 Bonds" means the Issuer's Water Supply and Wastewater System Revenue Bond, Series 2014, in the principal amount of not to exceed $3,775,000 issued pursuant to this Ordinance. (r) "Sufficient Government Obligations" means direct obligations of the United States of America or obligations the principal and interest on which is fully guaranteed by the United States of America, not redeemable at the option of the 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. (s) "Supplemental Agreement" means the supplemental agreement among the Issuer, the Authority and MDEQ relating to the Series 2014 Bonds. 39063 Regular Meeting Minutes of June 2, 2014 (t) "System" means the entire Water Supply and Wastewater System of the Issuer, including the Project and all additions, extensions and improvements hereafter acquired. Section 2. Necessity; Approval of Plans and Specifications. It is hereby determined to be a necessary public purpose of the Issuer to acquire and construct the Project in accordance with the plans and specifications prepared by the Engineers, which plans and specifications are hereby approved. The Project qualifies for the State Revolving Fund financing program being administered by the MDEQ and the Authority, whereby bonds of the Issuer are sold to the Authority and bear interest at a fixed rate of two and one-half percent (2.50%) per annum. Section 3. Costs; Useful Life. The cost of the Project is estimated to be an amount not to exceed Three Million Seven Hundred Seventy -Five Thousand Dollars ($3,775,000), including the payment of incidental expenses as specified in Section 4 of this Ordinance, which estimate of cost is hereby approved and confirmed, and the period of usefulness of the Project is estimated to be not less than twenty-five (25) years. Section 4. Payment of Cost; Bonds Authorized. To pay part of the cost of acquiring and constructing the Project, legal, engineering, financial and other expenses incident thereto and incident to the issuance and sale of the Series 2014 Bonds, the Issuer shall borrow the sum of not to exceed Three Million Seven Hundred Seventy -Five Thousand Dollars ($3,775,000), or such lesser amount as shall have been advanced to the Issuer pursuant to the Purchase Contract and the Supplemental Agreement, and issue the Series 2014 Bonds pursuant to the provisions of Act 94. The remaining cost of the Project, if any, shall be defrayed from Issuer funds on hand and legally available for such use,. Except as amended by or expressly provided to the contrary in this Ordinance, all of the provisions of the Prior Ordinances shall apply to the Series 2014 Bonds issued pursuant to this Ordinance, the same as though each of said provisions were repeated in this Ordinance in detail; the purpose of this Ordinance being to authorize the issuance of additional revenue bonds of equal standing and priority of lien as to the Net Revenues with the Outstanding Bonds to finance the cost of acquiring and constructing additions, extensions and improvements to the System; such purpose being authorized by the provisions of the Prior Ordinances, upon the conditions therein stated, which conditions have been fully met. Section 5. Issuance of Series 2014 Bonds; Details. The Series 2014 Bonds of the Issuer, to be designated WATER SUPPLY AND WASTEWATER SYSTEM REVENUE BOND, SERIES 2014, are authorized to be issued in the aggregate principal sum of not to exceed Three Million Seven Hundred Seventy -Five Thousand Dollars ($3,775,000) as finally determined by order 39064 Regular Meeting Minutes of June 2, 2014 of the MDEQ for the purpose of paying part of the cost of the Project, including the costs incidental to the issuance, sale and delivery of the Series 2014 Bonds. The Series 2014 Bonds shall be payable out of the Net Revenues, as set forth more fully in Section 8 hereof. The Series 2014 Bonds shall be in the form of a single fully -registered, nonconvertible bond of the denomination of the full principal amount thereof, dated as of the date of delivery, payable in principal installments as finally determined by the order of the MDEQ at the time of sale of the Series 2014 Bonds and approved by the Authority and an Authorized Officer. Principal installments of the Series 2014 Bonds shall be payable on April 1 of the years 2016 through 2035, inclusive, or such other payment dates as hereinafter provided. Interest on the Series 2014 Bonds shall be payable on April 1 and October 1 of each year, commencing October 1, 2014 or on such other interest payment dates as hereinafter provided. Final determination of the principal amount of and interest on the Series 2014 Bonds and the payment dates and amounts of principal installments of the Series 2014 Bonds shall be evidenced by execution of the Purchase Contract and each of the Authorized Officers is authorized and directed to execute and deliver the Purchase Contract when it is in final form and to make the determinations set forth above; provided, however, that the first principal installment shall be due no earlier than April 1, 2015 and the final principal installment shall be due no later than October 1, 2036 and that the total principal amount shall not exceed $3,775,000. The Series 2014 Bonds shall bear interest at a rate of two and one-half half percent (2.50%) per annum on the par value thereof or such other rate as evidenced by execution of the Purchase Contract, but in any event not to exceed the rate permitted by law, and any Authorized Officers as shall be appropriate shall deliver the Series 2014 Bonds in accordance with the delivery instructions of the Authority. The principal amount of the Series 2014 Bonds is expected to be drawn down by the Issuer periodically, and interest on principal amount shall accrue from the date such principal amount is drawn down by the Issuer. The Series 2014 Bonds shall not be convertible or exchangeable into more than one fully -registered bond. Principal of and interest on the Series 2014 Bonds shall be payable as provided in the Series 2013 Bond form in this Ordinance. The Series 2014 Bonds shall be subject to optional redemption by the Issuer with the prior written approval of the Authority and on such terms as may be required by the Authority. The City Clerk shall record on the registration books payment by the Issuer of each installment of principal or interest or both when made and the cancelled checks or other records evidencing such payments shall be returned to and retained by the City Clerk. 39065 Regular Meeting Minutes of June Z 2094 Upon payment by the Issuer of all outstanding principal of and interest on the Series 2014 Bonds, the Authority shall deliver the Series 2014 Bonds to the Issuer for cancellation. Section 6. Execution of Series 2014 Bonds. The Series 2014 Bonds shall be signed by the manual or facsimile signature of the Mayor and countersigned by the manual or facsimile signature of the City Clerk and shall have the corporate seal of the Issuer or a facsimile thereof impressed thereon. The Series 2014 Bonds bearing the manual signatures of the Mayor and the City Clerk sold to the Authority shall require no further authentication. Section 7. 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 Issuer 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 Series 2014 Bonds contained in Section 13 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. 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 39066 Regular Meeting Minutes of June Z 2014 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. Section 8. Payment of Series 2014 Bonds; Security; Priority of Lien. Principal of and interest on the Series 2014 Bonds shall be payable from the Net Revenues. There is hereby recognized the statutory lien upon the whole of the Net Revenues created by this Ordinance which shall be a lien that is equal in standing with the lien of the Outstanding Bonds created by the Prior Ordinances, 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. Upon deposit of cash or Sufficient Government 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 the Prior Ordinances or this Ordinance except for payment from the deposited funds, and the Bonds of that series shall no longer be considered to be outstanding under the Prior Ordinances or this Ordinance. Section 9. Management; Fiscal Year. The operation, repair and management of the System and the acquiring and constructing of the Project shall continue to be under the supervision and control of the Issuer. The Issuer may employ such person or persons in such capacity or capacities as it deems advisable to carry on the efficient management and operation of the System. The Issuer may make such rules and regulations as it deems advisable and necessary to assure the efficient management and operation of the System. The System shall be operated on the basis of an operating year which shall coincide with the Issuer's fiscal year. Section 10. Rates and Charges; No Free Service. The rates and charges for service furnished by the System and the methods of collection and enforcement of the collection of the rates shall be those in effect on the date of adoption of this Ordinance. No free service or use of the System, or service or use of the System at less than cost, shall be furnished by the 39067 Regular Meeting Minutes of June Z 2014 System to any person, firm, or corporation, public or private, or to any public agency or instrumentality, including the Issuer. Section 11. Funds and Accounts; Flow of Funds; Bond and Interest Redemption Fund. The funds and accounts established by the Prior Ordinances are hereby continued, the flow of funds established by the Prior Ordinances is hereby continued, and the applicable sections of the Prior Ordinances relating to funds and accounts and flow of funds are incorporated herein by reference as if fully set forth. The Issuer has determined that no additional funds are needed to be deposited in the Bond and Interest Redemption Account as established by the Prior Ordinances in order to maintain the proper Reserve Amount in connection with the issuance of the Series 2014 Bonds. Section 12. Bond Proceeds. The proceeds of the sale of the Series 2014 Bonds as received by the Issuer shall be deposited in a separate account in a bank or banks qualified to act as depository of the proceeds of sale under the provisions of Section 15 of Act 94 designated WATER SUPPLY AND WASTEWATER SYSTEM REVENUE BONDS CONSTRUCTION FUND (the "Construction Fund"). Moneys in the Construction Fund shall be applied solely in payment of the cost of the Project and any engineering, legal and other expenses incident thereto and to the financing thereof. Section 13. Bond Form. The Series 2014 Bonds shall be in substantially the following form with such changes or completion as necessary or appropriate to give effect to the intent of this Ordinance, and further subject to such modifications which may be required by the Michigan Attorney General and the Authority and approved by bond counsel: •1-: Regular Meeting Minutes of June 2, 2014 UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF WAYNE CITY OF LIVONIA WATER SUPPLY AND WASTEWATER SYSTEM REVENUE BOND, SERIES 2014 REGISTERED OWNER: Michigan Finance Authority PRINCIPAL AMOUNT: Three Million Seven Hundred Seventy -Five Thousand Dollars ($3,775,000) DATE OF ORIGINAL ISSUE: June 25, 2014 The CITY OF LIVONIA, County of Wayne, State of Michigan (the "City"), acknowledges itself to owe and for value received hereby promises to pay, solely out of the hereinafter described Net Revenues of the City's Water Supply and Wastewater System (hereinafter defined), to the Michigan Finance Authority (the "Authority"), or registered assigns, the Principal Amount shown above, or such portion thereof as shall have been advanced to the City pursuant to a Purchase Contract between the City and the Authority and a Supplemental Agreement by and among the City, the Authority and the State of Michigan acting through the Department of Environmental Quality, in lawful money of the United States of America, unless prepaid or reduced prior thereto as hereinafter provided. During the time the Principal Amount is being drawn down by the City under this Bond, the Authority will periodically provide to the City a statement showing the amount of principal that has been advanced and the date of each advance, which statement shall constitute prima facie evidence of the reported information, provided that no failure on the part of the Authority to provide such a statement or to reflect a disbursement or the correct amount of a disbursement shall relieve the City of its obligation to repay the outstanding Principal Amount actually advanced, all accrued interest thereon, and any other amount payable with respect thereto in accordance with the terms of this Bond. The Principal Amount shall be payable on the dates and in the annual principal installment amounts set forth on the Schedule attached hereto and made a part hereof, as such Schedule may be adjusted if less than $3,775,000 is disbursed to the City or if a portion of the Principal Amount is prepaid as provided below, with interest on said principal installments from the date each said installment is delivered to the holder hereof until paid at the rate of two and one-half percent (2.50%) per annum. Interest is first payable on October 1, 2014 and semiannually thereafter on the first day of April and October of each year, and principal is payable on the first day of April commencing April 1, 2016 and annually thereafter, as set forth in the Purchase Contract. 39069 Regular Meeting Minutes of June Z 2014 The Bond may be subject to redemption prior to maturity by the City only with the prior written consent of the Authority and on such terms as may be required by the Authority. Notwithstanding any other provision of this Bond, so long as the Authority is the owner of this Bond, (a) this Bond is payable as to principal, premium, if any, and interest at The Bank of New York Mellon Trust Company, N.A. or at such other place as shall be designated in writing to the City by the Authority (the "Authority's Depository"); (b) the City agrees that it will deposit with the Authority's Depository payments of the principal of, premium, if any, and interest on this Bond in immediately available funds by 12:00 noon at least five business days prior to the date on which any such payment is due whether by maturity, redemption or otherwise; in the event that the Authority's Depository has not received the City's deposit by 12:00 noon on the scheduled day, the City shall immediately pay to the Authority as invoiced by the Authority an amount to recover the Authority's administrative costs and lost investment earnings attributable to that late payment; and (c) written notice of any redemption of this Bond shall be given by the City and received by the Authority's Depository at least 40 days prior to the date on which such redemption is to be made. Additional Interest In the event of a default in the payment of principal or interest hereon when due, whether at maturity, by redemption or otherwise, the amount of such default shall bear interest (the "additional interest") at a rate equal to the rate of interest which is two percent above the Authority's cost of providing funds (as determined by the Authority) to make payment on the bonds of the Authority issued to provide funds to purchase this bond but in no event in excess of the maximum rate of interest permitted by law. The additional interest shall continue to accrue until the Authority has been fully reimbursed for all costs incurred by the Authority (as determined by the Authority) as a consequence of the City's default. Such additional interest shall be payable on the interest payment date following demand of the Authority. In the event that (for reasons other than the default in the payment of any municipal obligation purchased by the Authority) the investment of amounts in the reserve account established by the Authority for the bonds of the Authority issued to provide funds to purchase this bond fails to provide sufficient available funds (together with any other funds which may be made available for such purpose) to pay the interest on outstanding bonds of the Authority issued to fund such account, the City shall and hereby agrees to pay on demand only the City's pro rata share (as determined by the Authority) of such deficiency as additional interest on this bond. For prompt payment of principal and interest on this bond, the City has irrevocably pledged the revenues of the Water Supply and Wastewater System of the City, including all appurtenances, extensions and improvements thereto (the "Water Supply and Wastewater System"), after provision has been made for reasonable and necessary expenses of operation, maintenance and administration (the "Net Revenues"), and a statutory lien thereon is hereby recognized and created which is of equal standing and priority of lien as to the prior lien of the City's Water Supply and Wastewater System Revenue Bonds, Series 2005, the City's Water Supply and Wastewater System Revenue 39070 Regular Meeting Minutes of June 2, 2014 Refunding Bonds, Series 2006 and the City's Water Supply and Wastewater System Revenue Bonds, Series 2013 (collectively, the "Outstanding Bonds"). This bond is a single, fully -registered, non -convertible bond in the principal sum indicated above issued pursuant to Ordinance No. 2963 duly adopted by the City Council of the City (the "Ordinance") and Ordinance Nos. 2719 and 2945 authorizing issuance of the Outstanding Bonds (the "Prior 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 part of the cost of acquiring and constructing additions, extensions and improvements to the Water Supply and Wastewater System of the City. 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 superior and equal standing may hereafter be issued and the general covenants and provisions pursuant to which this bond is issued, reference is made to the Ordinance and the Prior Ordinances. This bond is a self-liquidating bond, payable, both as to principal and interest, solely and only from the Net Revenues of the Water Supply and Wastewater System. The principal of and interest on this bond are secured by the statutory lien hereinbefore mentioned. The City 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 Water Supply and Wastewater System shall be outstanding, such rates for service furnished by the Water Supply and Wastewater System as shall be sufficient to provide for payment of the interest upon and the principal of this bond and any bonds of equal standing with this bond, the Outstanding Bonds and any additional bonds of equal standing with the Outstanding Bonds, as and when the same shall become due and payable, and to 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 Water Supply and Wastewater 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 Water Supply and Wastewater System as are required by the Ordinance and the Prior Ordinances. This bond is transferable only upon the books of the City by the registered owner in person or the registered owner's attorney duly authorized in writing, upon the surrender of this bond 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 bond or bonds in the same aggregate principal amount and of the same maturity shall be issued to the transferee in exchange therefor as provided in the Ordinance and the Prior Ordinances, and upon payment of the charges, if any, therein prescribed. 39071 Regular Meeting Minutes of June Z 2014 It is hereby certified and recited that all acts, conditions and things required by law to be done precedent to and in the issuance of this bond have been done and performed in regular and due time and form as required by law. IN WITNESS WHEREOF, the City, by its City Council has caused this bond to be executed with the manual signatures of its Mayor and its City Clerk and the corporate seal of the City to be impressed hereon, all as of the Date of Original Issue. (Seal) Countersigned: By Its City Clerk DEQ Project No.: 7355-01 DEQ Approved Amt: $3,775,000 CITY OF LIVONIA County of Wayne State of Michigan Its Mayor SCHEDULE A Based on the schedule provided below unless revised as provided in this paragraph, repayment of the principal of the bond shall be made until the full amount advanced to the City is repaid. In the event the Order of Approval issued by the Department of Environmental Quality (the "Order"), approves a principal amount of assistance less than the amount of the bond delivered to the Authority, the Authority shall only disburse principal up to the amount stated in the Order. In the event (1) that the payment schedule approved by the City and described below provides for payment of a total principal amount greater than the amount of assistance approved by the Order or (2) that less than the principal amount of assistance approved by the Order is disbursed to the City by the Authority, the Authority shall prepare a new payment schedule which shall be effective upon receipt by the City. 39072 Regular Meeting Minutes of June 2, 2014 Maturity Date Principal Amount April 1, 2016 $145,000 April 1, 2017 150,000 April 1, 2018 155,000 April 1, 2019 160,000 April 1, 2020 165,000 April 1, 2021 165,000 April 1, 2022 170,000 April 1, 2023 175,000 April 1, 2024 180,000 April 1, 2025 185,000 April 1, 2026 190,000 April 1, 2027 195,000 April 1, 2028 200,000 April 1, 2029 205,000 April 1, 2030 210,000 April 1, 2031 215,000 April 1, 2032 220,000 April 1, 2033 225,000 April 1, 2034 230,000 April 1, 2035 235,000 Interest on the bond shall accrue on that portion of principal disbursed by the Authority to the City pursuant to the Order from the date such portion is disbursed, until paid, at the rate of 2.50% per annum, payable October 1, 2014, and semi-annually thereafter. The City agrees that it will deposit with The Bank of New York Mellon Trust Company, N.A., or at such other place as shall be designated in writing to the City by the Authority (the "Authority's Depository") payments of the principal of, premium, if any, and interest on this Bond in immediately available funds by 12:00 noon at least five business days prior to the date on which any such payment is due whether by maturity, redemption or otherwise. In the event that the Authority's Depository has not received the City's deposit by 12:00 noon on the scheduled day, the City shall immediately pay to the Authority as invoiced by the Authority an amount to recover the Authority's administrative costs and lost investment earnings attributable to that late payment. Section 14. Bondholders' Rights; Receiver. The holder or holders of the Bonds representing in the aggregate not less than twenty per cent (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. 39073 Regular Meeting Minutes of June Z 2014 If there is a default in the payment of the principal of or interest upon the Series 2014 Bonds, any court having jurisdiction in any proper action may appoint a receiver to administer and operate the System on 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. The holder or holders of the Series 2014 Bonds shall have all other rights and remedies given by Act 94 and law, for the payment and enforcement of the Series 2014 Bonds and the security therefor. Section 15. Negotiated Sale; Application to MDEQ and Authority; Execution of Documents. The Issuer determines that it is in the best interest of the Issuer to negotiate the sale of the Series 2014 Bonds to the Authority because the State Revolving Fund financing program provides significant interest savings to the Issuer compared to competitive sale in the municipal bond market. The Authorized Officers are hereby authorized to make application to the Authority and to the MDEQ for placement of the Series 2014 Bonds with the Authority. The actions taken by the Authorized Officers with respect to the Series 2014 Bonds prior to the adoption of this Ordinance are ratified and confirmed. The Authorized Officers are authorized to execute and deliver the Purchase Contract, the Supplemental Agreement and the Issuer's Certificate. Any Authorized Officers is further authorized to execute and deliver such contracts, documents and certificates as are necessary or advisable to qualify the Series 2014 Bonds for the State Revolving Fund. Prior to the delivery of the Series 2014 Bonds to the Authority, any Authorized Officer is hereby authorized to make such changes to the form of the Series 2014 Bonds contained in Section 13 of this Ordinance as may be necessary to conform to the requirements of Act 227, Public Acts of Michigan 1985, as amended ("Act 227"), including, but not limited to changes in the principal maturity and interest payment dates and references to additional security required by Act 227. Section 16. Covenant Regarding Tax Exempt Status of the Bonds. The Issuer shall, to the extent permitted by law, take all actions within its control necessary to maintain the exemption of the interest on the Series 2014 Bonds from general federal income taxation (as opposed to any alternative minimum or other indirect taxation) 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 Series 2014 Bonds proceeds and moneys deemed to be Bond proceeds. Section 17. Approval of Bond Counsel. The representation of the Issuer by Miller, Canfield, Paddock and Stone, P.L.C. ("Miller Canfield"), as bond counsel is hereby approved, notwithstanding the representation by Miller Canfield of the Authority in connection with the State Revolving Fund program which may include advising the Authority with respect to this borrowing. Section 18. Approval of Bond Details. The Authorized Officers are each hereby authorized to adjust the final bond details set forth herein to the extent necessary or convenient to complete the transaction authorized herein, and in pursuance of the foregoing is authorized to exercise the authority and make the determinations authorized pursuant to Section 7a(1)(c) of Act 94, including but not limited to determinations 39074 Regular Meeting Minutes of June Z 2014 regarding interest rates, prices, discounts, maturities, principal amounts, denominations, dates of issuance, interest payment dates, redemption rights, the place of delivery and payment, and other matters, provided that the principal amount of Series 2014 Bonds issued shall not exceed the principal amount authorized in this Ordinance, the interest rate per annum on the Series 2014 Bonds shall not exceed two and one-half percent (2.50%) per annum, and the Series 2014 Bonds shall mature in not more than twenty (20) annual installments. Section 19. Savings Clause. All ordinances, resolutions or orders, or part thereof, in conflict with the provisions of this Ordinance are, to the extent of such conflict, repealed. Section 20. Severability; Paragraph 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 this Ordinance. The paragraph headings in this Ordinance are furnished for convenience of reference only and shall not be considered to be part of this Ordinance. Section 21. Publication and Recordation. This Ordinance shall be published in full in the Livonia Observer, a newspaper of general circulation in the Issuer 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 record authenticated by the signatures of the Mayor and the City Clerk. Section 22. Effective Date. This Ordinance shall be effective upon its adoption and publication. A roll call vote was taken on the foregoing Ordinance with the following result: AYES: Kritzman, Pastor, Meakin, Toy, Scheel, Nash, and Brosnan NAYS: None The President declared the foregoing Ordinance duly adopted, and would become effective on publication. On a motion by Toy, seconded by Pastor, and unanimously adopted, it was: #166-14 WHEREAS, the City Clerk has received an amended Application for Industrial Facilities Exemption Certificate from Lynn A. Gandhi, Honigman Miller Schwartz and Cohn LLP on behalf of Leapers Inc., dated April 22, 2014, for new machinery and equipment and improving the building at their facility located at 32500 Capitol, within City of Livonia Industrial Development Overlay District No. 110; and WHEREAS, the City Clerk has notified in writing the Assessor of the City of Livonia as well as the legislative body of each taxing unit which levies ad valorem property taxes in the local governmental unit in which the proposed 39075 Regular Meeting Minutes of June Z 2014 facility is to be located, i.e., the City of Livonia, and advised each of them that the said amended Application has been received; and WHEREAS, the City Council has afforded Leapers Inc., the Assessor, and a representative of each of the affected taxing units an opportunity for a hearing on this amended Application and said hearing having in fact been conducted at 7:00 p.m., Wednesday, May 14, 2014, at the Livonia City Hall, 33000 Civic Center Drive, Livonia, Michigan. WHEREAS, the aggregate'SEV of real and personal property exempt from ad valorem taxes within the City of Livonia, after granting this certificate, will not exceed 5: of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property thus exempted; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LIVONIA AS FOLLOWS: That the City Council, on the basis of the information received from the applicant, Leapers Inc., finds and determines: (a) that the granting of this industrial facilities exemption certificate shall not have the effect of substantially impeding the operation of the local governmental unit or impairing the financial soundness of any taxing unit which levies an ad valorem property tax in the local governmental unit in which the facility is to be located; and (b) the applicant has fully complied with the requirements of Section 9, Act No. 198, P.A. 1974, as amended. 2. That the City Council hereby approves the amended Application for Industrial Facilities Exemption Certificate from Leapers Inc. for new machinery and equipment and improving the building at their facility located at 32500 Capitol within the City of Livonia Industrial Development Overlay District No. 110 for 7 years, originally approved August 24, 2011 in Council Resolution 280-11, such certificate to expire December 30, 2018. 3. That in accordance with the requirements of Section 22, Act 198, P.A. 1974, as amended, wherein a letter of agreement between the applicant and the City is required in order to clarify the understanding and the commitment between the applicant and the Regular Meeting Minutes of June 2, 2014 was: 39076 City upon approval of an Industrial Facilities Exemption Certificate, the Council hereby authorizes the Mayor and City Clerk to sign such Letter of Agreement (as amended) as duly executed by the applicant and incorporate such Letter of Agreement as part of the documentation required to process applications for Industrial Facilities Exemption Certificates. On a motion by Pastor, seconded by Meakin, and unanimously adopted, it #167-14 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. On a motion by Toy, seconded by Nash, and unanimously adopted, it was: #168-14 RESOLVED, that having considered a request from Julie Buddie, dated May 29, 2014, which requests permission to waive Section 8.32.070 (Noise Control) of the Livonia Code of Ordinances, as amended, to a allow a DJ to play music from 3:00 p.m. to 11:00 p.m. at 32935 Grennada, in connection with a graduation party scheduled for Saturday, June 7, 2014, the Council does hereby grant and approve this request in the manner and form herein submitted. There was no Audience Communication at the end of the meeting. On a motion by Meakin, seconded by Toy, and unanimously adopted, this 1,7541h Regular Meeting of the Council of the City of Livonia was adjourned at 7:16 p.m. Terry A. Marecki, City Clerk