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HomeMy WebLinkAboutCOUNCIL MINUTES 1954-03-01 ADJOURNED Page 1390 MINUTES OF THE ADJOURNED ONE HUNDRED THIRTEENTH REGULAR MEETING OF THE COUNCIL OF THE CITY OF LIVONIA On March 1, 1954, the above meeting was held at 33001 Five Mile Road, Livonia, Michigan, and was called to order at approximately 8:50 A M., by the President of the Council, Harry S. Wolfe. Roll was called with the following result: Present:-- Harry S Wolfe, Wilson W Edgar, Raymond E Grimm, Harold Bower, John W Whitehead, Nettie Carey and William J Taylor Absent:-- None Councilman Whitehead introduced the following Ordinance: NO. 80 AN ORDINANCE AUTHORIZING THE CONSTRUCTION OF EXTENSIONS, ADDITIONS AND IMPROVEMENTS TO THE WATER SUPPLY SYSTEM OF THE CITY OF LIVONIA: AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF REVENUE BONDS OF EQUAL STANDING WITH THE OUT- STANDING REVENUE BONDS, FOR THE PURPOSE OF DEFRAYING THE COST OF SUCH EXTENSIONS, ADDITIONS AND IMPROVEMENTS UNDER THE PROVISIONS OF ACT 94, PUBLIC ACTS OF MICHIGAN, 1933, AS AMENDED, AND ORDINANCE NO 43 ADOPTED ON JANUARY 21, "s 1952, AS AMENDED BY ORDINANCE NO 45 ADOPTED ON JANUARY 28, 1952; PRESCRIBING THE DETAILS OF SAID BONDS; PROVIDING FOR THE PAYMENT OF SAID BONDS OUT OF THE REVENUES OF SAID WATER SUPPLY SYSTEM; AND PROVIDING FOR A STATUTORY LIEN IN FAVOR OF THE HOLDER OR HOLDERS OF SUCH BONDS UPON SUCH REVENUES WHEREAS, the City of Livonia, by Ordinance No. 43 duly adopted on January 21, 1952, as amended by Ordinance No. 45 duly adopted on January 28, 1952, has heretofore issued and sold Water Supply System Revenue Bonds in the aggregate principal sum of One Million Six Hundred Sixty Thousand ($1,660,000.00) Dollars, having serial maturities on March 1st of each of the years 1954 through 1991, inclusive, for the purpose of acquiring and constructing extensions, additions and improvements to the Water Supply System of the City of Livonia; AND WHEREAS, it has been determined by the City Council that it is necessary for the public health and safety of the City of Livonia to acquire and construct ex- tensions, additions and improvements to the Water Supply System of the City consist- ing of one hundred sixty-two thousand four hundred ninety-eight feet of additional six inch, eight inch, twelve inch, sixteen inch, eighteen inch, and thirty-six inch water mains together with necessary appurtenances, attachments and fitting thereto, and for the payment of which extensions, additions and improvements it will be .... necessary to issue additional bonds in the amount of One Million Five Hundred Thousand ($1,500,000 00) Dollars, Page 1391 AND WHEREAS, Section 19(b) of Ordinance No. 43 as amended authorizes the issuance of additional bonds of equal standing with the bonds authorized by Ordinance No. 43, as amended, as follows* Section 19(b)• For further extensions, additions or improvements to the System, provided, that no such additional bonds shall be issued unless the net revenues for the completed operating year, next preceding the issuance of the additional bonds, plus a figure representing the additional average annual net revenues estimated to accrue from the use and operation of the proposed extensions, additions and improvements, for the first five (5) operating years, after the construction and placing in use of the proposed extensions, additions or improvements are equal to not less than one and one—half (1-1/2) times the largest amount of combined principal and interest to fall due in any future operating year on any bonds then outstanding payable from the revenues of the System and on the additional bonds so to be issued. As a condition precedent to the issuance of said bonds, a written estimate of the annual net revenue estimated to accrue from the construction of the proposed additions, extensions and improvements, each operating year until the final maturity of said bonds, concurred in and executed by the Engineer or other operating official in charge of the Wayne County Metropolitan Water Supply System, an Engineer designated by the Municipal Finance Commission (or such other State Agency as shall have jurisdiction over the issuance of municipal bonds) and the City Engineer of the City of Livonia , shall be filed with the City Clerk and the Municipal Finance Commission Permission of the Municipal Finance Commission (or such other State agency as shall have jurisdiction over the issuance of municipal bonds) to issue such additional bonds shall constitute a conclusive presumption of the existence of conditions permitting the "". issuance thereof Except as herein authorized, no additional bonds having equal standing with the bonds of this issue shall be authorized or issued. AND WHEREAS, the net revenues of the System for the completed operating year next preceding the issuance of the bonds in this Ordinance authorized to be issued plus a figure representing the additional average annual net revenues estimated to accrue from the use and operation of the proposed extensions, additions and im— provements for the first five operating years after the construction and placing in use of the proposed extensions, additions and improvements are equal to not less than one and one—half (1-1/2) times the largest amount of combined principal and interest to fall due in any future operating year on any bonds row outstanding, payable from the revenues of the Water Supply System and on the additional bonds herein authorized to be issued; AND WHEREAS, all things necessary to the authorization and issuance of said bonds under the Constitution and laws of the State of Michigan, and Ordinances of the City of Livonia, and particularly Act 94, Public Acts of Michigan, 1933, as amended, and Ordinance No 43 of the City of Livonia adopted on January 21, 1952, as amended by Ordinance No. 45 of the City of Livonia adopted on January 28, 1952, have been done and the City Council is row empowered and desires to authorize the issuance of said bonds, THE CITY OF LIVONIA ORDAINS: Page 1392 Section 1. It is hereby determined and declared to be necessary for the public health and welfare of the City of Livonia to acquire and construct extensions, additions and improvements to the Water Supply System of the City of Livonia (herein- r.m after referred to as "the System") consisting of one hundred sixty-two thousand four hundred ninety-eight (162,498) feet of additional six inch, eight inch, twelve inch, sixteen inch, eighteen inch, and thirty-six inch water mains together with necessary appurtenances, attachments and fittings thereto, and the City Council determines the estimate of cost of said extensions, additions and improvements, including incidental expenses as set forth in Section 2 of this Ordinance to be One Million Five Hundred Thousand ($1,500,000.00) Dollars and the period of usefulness of said extensions, additions and improvements to be not less than forty (40) years Section 2 To pay the cost of acquiring and constructing said extensions, additions and improvements to the System,including payment of engineering, legal and other expenses incident thereto and incident to the issuance of said bonds, it is hereby determined that there be borrowed upon the credit of the income and revenues of the Water Supply System of the City of Livonia, the additional sum of $1,500,000 00, and that revenue bonds be issued therefor, under the provisions of Act 94, Public Acts of Michigan, 1933, as amended, said bonds having equal standing and priority and being equally secured with the $1,660,000 00 Water Supply System Revenue Bonds, dated February 1, 1952, autho rized by Ordinance No 43 of the City of Livonia as amended by Ordinance No. 45 of the City of Livonia (hereinafter referred to as "1952 Ordinance") Section 3. Said additional issue of bonds shall be designated Water Supply System Revenue Bonds, Series B, and shall be, not general obligations of the City of Livonia, but revenue bonds, payable out of the net revenues of the Water Supply System after provision has been made for payment of expenses of operation and %Iwo maintenance, and shall consist of fifteen hundred (1500) bonds of $1,000.00 each, numbered in direct order of maturity from 1 to 1500, inclusive, dated April 1, 1954, numbered and maturing March 1st of each year as follows: Bond Nos Inclusive Amount Maturity 1/20 $20,000 1955 21/40 20,000 1956 41/60 20,000 1957 61/85 25,000 1958 86/110 25,000 1959 111/135 25,000 1960 136/160 25,000 1961 161/185 25,000 1962 186/210 25,000 1963 211/235 25,000 1964 236/265 30,000 1965 266/295 30,000 1966 296/325 30,000 1967 326/355 30,000 1968 356/390 35,000 1969 391/425 35,000 1970 426/460 35,000 1971 461/495 35,000 1972 496/535 40,000 1973 536/575 40,000 1974 Page 1393 Bond Nos Inclusive Amount Maturity ..� 576/615 40,000 1975 616/655 40,000 1976 656/700 45,000 1977 701/745 45,000 1978 746/790 45,000 1979 791/840 50,000 1980 841/8900 50,000 1981 891/940 50,000 1982 941/995 55,000 1983 996/1050 55,000 1984 1051/1105 55,000 1985 1106/1160 55,000 1986 1161/1220 60,000 1987 1221/1285 65,000 1988 1286/1355 70,000 1989 1356/1425 70,000 1990 1426/1500 75,000 1991 Said bonds shall bear interest at a rate or rates not exceeding four (4%) per cent per annum, payable on September 1, 1954, and semi-annually thereafter on March 1st and September 1st of each year, both principal and interest to be payable in lawful money of the United States of America at DETROIT TRUST ODMPANY, Detroit, Michigan Outstanding bonds of this issue may be called for redemption as a whole, for the purpose of refunding on any interest payment date on or after March 1, 1963 iftm Unless called as a whole, in accordance with the above provisions, bonds numbered 1 to 655, inclusive, maturing in the years 1955 to 1976, inclusive, shall not be subject to redemption prior to maturity. Bonds numbered 656 to 1500, inclusive, maturing in the years 1977 to 1991, inclusive, shall be subject to redemption prior to maturity at the option of the City, in inverse numerical order on any interest payment date on or after March 1, 1963. Bonds called for redemption shall be redeemed at par and accrued interest plus a premium as follows- $45.00 on each bond called for redemption prior to March 1, 1964; $40 00 on each bond called for redemption on or after March 1, 1964, but prior to March 1, 1966, $35.00 on each bond called far redemption on or after March 1, 1966, but prior to March 1, 1968; $30.00 on each bond called for redemption on or after March 1, 1968, but prior to March 1, 1970; $25.00 on each bond called for redemption on or after March 1, 1970, but prior to March 1, 1972; $20,00 on each bond called for redemption on or after March 1, 1972, but prior to March 1, 1975, $15 00 on each bond called for redemption on or after March 1, 1975, but prior to March 1, 1978; Page 1394 $10.00 on each bond called for redemption on or after March 1, 1978, but prior to March 1, 1981; $ 5 00 on each bond called for redemption on or after March 1, 1981, but prior to March 1, 1984. No premium shall be paid on bonds called for redemption on or after March 1, 1984. Thirdy days' notice of ttte call of any bonds for redemption shall be given by publi— cation in a paper circulated in the State of Michigan which carries, as part of its regular service, notices of sale of municipal bonds, and in case of registered bonds, thirty days' notice shall be given by mail to the registered address. Bonds so called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the paying agent to redeem said 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 Said bonds shall be signed by the Mayor and countersigned by the City Clerk, and shall have interest coupons attached bearing the facsimile signatures of said Mayor and City Clerk, and said officials, by the execution of said bonds, shall adopt as and for their own proper signatures their respective facsimile signatures on said coupons. Section 4 The Bond Reserve Account in the Bond and Interest Redemption Fund as established by Section 12, subsection (B) of the 1952 Ordinance, shall be increased an additional One Hundred Ten Thousand ($110,000 00) Dollars, so that a Bond Reserve Account of Two Hundred Thousand ($200,000 00) Dollars, shall be established in the manner provided by Section 12, subsection (B) of said 1952 Ordinance Said additional amount shall be placed in said Bond Reserve Account M` not later than the close of the operating year commencing March 1, 1958 Section 5 The schedule of rates for water services furnished by the System established by the 1952 Ordinance and in effect in the City on the date of adoption of this Ordinance shall be regarded as the initial schedule of rates for the purposes of this Ordinance The procedure for collection and enforcing the collection of rates shall be the same as that set forth in the 1952 Ordinance. The right to require a deposit in such cases where a tenant is responsible for water charges shall be the same as that provided by the 1952 Ordinance. Section 6 Except as otherwise provided by this Ordinance, all the pro— visions and covenants of the 1952 Ordinance shall apply to the bonds issued pursuant to this Ordinance the same as though each of said provisions and covenants were repeated in this Ordinance in detail, the purpose of this Ordinance being to authorize the issuance of additional revenue bonds to acquire and construct improvements, additions and extensions to the Water Supply System; bonds for such purposes being specifically authorized by the provisions of Section 19 of the 1952 Ordinance. Section 7. The proceeds of sale of the bonds herein authorized to be issued shall be deposited in the National Bank of Detroit, Detroit , Michigan, a Federal Reserve System member bank Any premium or accrued interest paid by the purchaser of said bonds shall be transferred to the Bond and Interest Redemption Fund. The balance of the proceeds of sale shall be used only to pay the cost of the extensions, additions and improvements herein authorized to be made and any engineering, legal or other expenses incidental thereto. Any unexpended balance of the proceeds of sale, after completion of the extensions, additions and im— provements herein authorized to be made, may, to the extent of $225,000.00, be Page 1395 used for further extensions and improvements to the System, provided that at the time of such expenditure the approval of the Municipal Finance Commission to such be obtained Any balance remaining after such expenditure shall be paid into the Bond and Interest Redemption Fund and shall be used for the redemption of callable bonds Section 8. The bonds authorized by this Ordinance shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF WAYNE CITY OF LIVONIA WATER SUPPLY SYSTEM REVENUE BOND, SERIES B No. $1,000.00 KNOW ALL MEN BY THESE PRESENTS THAT THE CITY OF LIVONIA, County of Wayne, State of Michigan, for value received hereby promises to pay to the bearer, or if registered, to the registered holder hereof, but only out of the revenues of the Water Supply System of the City, including all appurtenances, extensions, additions and improvements thereto, the sum of ONE THOUSAND DOLLARS, on the first day of March, A D 19 , with interest thereon from the date hereof until paid at the rate of per cent per annum, payable on September 1, 1954, and semi-annually thereafter on the first day of March and September of each year, W"= upon presentation and surrender of the proper interest coupons hereto annexed as they severally become due Both principal of arra interest on this bond are payable in lawful money of the United States of America, at DETROIT TRUST COMPANY, Detroit, Michig-zn, and for the prompt payment thereof, the gross revenues of the Water Supply System of the City of Livonia, including all appurtenances, extensions, additions and improvements thereto, after provision has been made for reasonable and necessary expenses of operation, administration and maintenance are hereby irrevocably pledged and a statutory first lien thereon is hereby created. This bond is one of a series of fifteen hundred (1500) bonds of even date and like tenor except as to date of maturity aggregating the sum of $1,500,000 00, issued pursuant to Ordinance No 80, duly adopted by the City Council on March 1, 1954, 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 the cost of acquiring and constructing extensions, additions and improvements to the Water Supply System of the City. The bonds of this issue hive equal standing and priority and are equally secured with Water Supply System Revenue Bonds, in the aggregate principal anogtnt of $1,660,000.00 dated February 1, 1952, issued under the provisions of Ordinance No.43 as amended by Ordinance No. 45 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 ad- ditional bonds of equal standing may hereafter be issued, and the general covenants and provisions pursuant to which this bond is issued, reference is made to the above-described Ordinance. Page 1396 Outstanding bonds of this issue may be called for redemption as a whole, for the purpose of refunding on any interest payment date on or after March 1, 1962 Unless called as a whole, in accordance with the above provisions, bonds numbered 1 to 655, inclusive, maturing in the years 1955 to 1976, inclusive, shall not be subject to redemption prior to maturity The right is reserved of redeeming bonds of this issue numbered 656 to 1500, inclusive, maturing in the years 1977 to 1991, inclusive, in inverse numerical order on any interest payment date on or after March 1, 1963. Bonds called for redemption shall be redeemed at par and accrued interest plus a premium as follows. $45 00 on each bond called for redemption prior to March 1, 1964; $40 00 on each bond called for redemption on or after March 1, 1964, but prior to March 1, 1966; $35 00 on each bond called for redemption on or after March 1, 1966, but prior to March 1, 1968, $30.00 on each bond called for redemption on or after March 1, 1968, but prior to March 1, 1970; $25.00 on each bond called for redemption on or after March 1, 1970, but prior to March 1, 1972; $20.00 on each bond called for redemption on or after March 1, 1972, but prior to March 1, 1975; $15.00 on each bond called for redemption on or after March 1, 1975, but prior to March 1, 1978; $10.00 on each bond called for redemption on or after March 1, 1978, but prior wow to March 1, 1981; $ 5 00 on each bond called for redemption on or after March 1, 1981, but prior to March 1, 1984. No premium shall be paid on bonds called for redemption on or after March 1, 1984. Thirty days ' notice of the call of any bonds for redemption shall be given by publi- cation in a paper circulated in the State of Michigan which carries, as part of its regular service, notices of sale of municipal bonds, and in case of registered bonds, thirty days' notice shall be given by mail to the registered address Bonds so called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the paying agent to redeem said bonds This bond is self-liquidating bond, and is not a general obligation of the City of Livonia, and does not constitute an indebtedness of the City of Livonia within any Constitutional or statutory limitation, and is payable, both as to principal and interest, solely from the revenues of the Water Supply System of the City. The principal and interest on this bond are secured by the statutory first lien hereinbefore mentioned. The City of Livonia hereby covenants and agrees to fix and maintain at all times while any of the bonds shall be outstanding, such rates for service furnished by said Water Supply System as shall be sufficient to provide for the payment of the interest upon and the principal of all such bonds as and when the same become due and payable, to create a bond and interest redemption fund ammo (including a Bond Reserve Account) therefor, to provide for the payment of expenses of administration and operation and such expenses for maintenances of said Water Supply System as are necessary to preserve the same in good repair and working order, and to provide for such other expenditures and funds for said System as are required by said Ordinance. Page 1397 This bond and the interest thereon are exempt from any and all taxation whatsoever by the State of Michigan or by any taxing authority within said State. This bond may be registered as to principal only on the books of the City Treasurer in the name of the holder, and such registration noted on the back hereof by the City Treasurer, after which no transfer shall be valid unless made on the books and noted hereon in like manner, but transferability by delivery may be restored by registration to bearer. Such registration shall not affect the negotiability of the interest coupons. 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 which this is one have been done and performed in regular and due time and form as required by law IN WITNESS WHEREOF, the City Council of the City of Livonia, County of Wayne, State of Michigan, has caused this bond to be signed in the name of said City by the Mayor and countersigned by its City Clerk and the corporate seal of the City to be affixed hereto, and the coupons hereto attached to be signed by the facsimile signatures of said Mayor and City Clerk, as of the first day of April, A D 1954 CITY OF LIVONIA By (Seal) Mayor Countersigned: City Clerk (Form of Coupon) No $ On the first day of A D 19 , unless the bonds to which this coupon pertains shall have been called for redemption, the CITY OF LIVONIA, Wayne County, Michigan, will pay to the bearer the sum of Dollars, in the manner and out of the revenues described in said bond, at DETROIT TRUST COMPANY, Detroit , Michigan, being the semi-annual interest due that date on its Water Supply System Revenue Bond, Series B, Dated April 1, 1954, No. This coupon is not a general obligation of the City of Livonia, but is payable from certain revenues as set forth in the bond to which it pertains Mayor City Clerk Page 1398 REGISTRATION NOTHING TO BE WRITTEN HEREON EXCEPT BY __ THE CITY TREASURER Date of Registration Name of Registered Owner • Registrar Section 9. The City Clerk is hereby authorized and directed to make application to the Municipal Finance Commission for authority to issue and sell said bonds and for approval of the form of Notice of Sale in accordance with the provisions of Act 202, Public Acts of Michigan, 1943, as amended, and of Act 94, public Acts of Michigan, 1933, as amended Section 10 If any section, paragraph, clause or provision of this Ordinance shall be held ihvalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. Section 11. All ordinances, resolutions or orders, or parts thereof, in conflict with the provisions of this Ordinance are to the extent of such conflict hereby repealed bum Section 12. This Ordinance shall be published in full in The Livonian, a newspaper of general circulation in the City of Livonia, qualified under State law to publish legal entices within one week of its adoption. Section 13 This Ordinance shall become effective immediately upon its adoption. * * * A roll call vote was taken on the foregoing Ordinance with the following result: AYES. Edgar, Grimm, Bower, Whitehead, Carey, Taylor and Wolfe NAYS• None. President Wolfe declared that the foregoing Ordinance was duly adopted and shall become effective immediately, pursuant to the statutes in such case made and provided On motion of Councilman Grimm, Seconded by Councilman Taylor and unanimously adopted, this adjourned 113th regular meeting of the Council was Page 1399 duly adjourned, the time of this adjournment being approximately 9:18 A M., LMarch 1, 1954 /--- 4, ,-,fre-etXA- ' : e W Clark, City Clerk Attested: i f 7 H:6 ry S. Wo e, President of the ouncil.