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HomeMy WebLinkAboutCOUNCIL MINUTES 1957-05-15 SPECIAL Page 2851 MINUTES OF THE THIRTY-NINTH SPECIAL MEETING OF THE COUNCIL OF THE CITY OF LIVONIA On May 15, 1957, the above meeting was held at 33001 Five Mile Road, Livonia, Michigan, and was called to order at approximately 8:22 P. M., by the President of the Council. Roll was caJ led with the following result: Present-- Austin T. Grant, Sydney B. Bagnall, Rudolf R. Kleinert, Peter A.Ventura, David L. Jones and John T. Daugherty. Absent-- *Frank O'Neill. *Councilman Frank O'Neill arrived at 8:25 P. M. By Councilman Ventura, seconded by Councilman Bagnall, it was #350-57 BE IT RESOLVED, by the City Council of the City of Livonia, Michigan, that consent be, and it hereby is, granted to the Board of County Road Commissioners of the County of Wayne, Michigan, to assume jurisdiction over the section of r'armington Road in the City of Livonia, Wayne County, Michigan, described as follows: Beginning at the corner common to Sections 33 and 34, T 1 S, R 9 E, Livonia Township, and Sections 3 and 4, T 2 S, R 9 E, Nankin Towship, Wayne County, Michigan; thence northerly along the line common to Sections 33 and 34, T 1 S, R 9 E, to the south line of Plymouth Road, a distance of 1.0 mile more or less; BE IT FURTHER RESOLVED, that the City Clerk be, and she hereby is, authorized and directed to forward a certified copy of this resolution to said Board of County Road Commissioners. A roll call vote was taken on the foregoing resolution with the following result: AYES: O'Neill, Bagnall, Kleinert, Jones, Ventura, Daugherty and Grant. NAYS: None. A preamble and resolution authorizing the issuance of $300,000.00 Motor Vehicle Highway Fund Bonds was read and offered by Councilman Ventura and supported by Councilman Bagnall. Councilman O'Neill was excused at 8:55 P. M. By Councilman Ventura, seconded by Councilman Jones, it was #351-57 RESOLVED that, the proposed resolution authorizing the issuance of $300,000.00 Motor Vehicle Highway Fund Bonds is hereby tabled for ten minutes, pending receipt of information from Mr. John Nunneley of Miller, Canfield, Paddock and Stone, bonding attorneys. Page 2855 A roll call vote was taken on the foregoing resolution with the following result: AYES: Bagnall, Jones, Ventura, Daugherty and Grant. NAYS: Kleinert. The President declared the resolution adopted. By Councilman Daugherty, seconded by Councilman Kleinert, it was #352-57 RESOLVED that, in authorizing the City of Livonia to enter into a contract with the Board of Wayne County Road Commissioners to share the cost of paving portions of Middle Belt, Joy, Farmington and Merriman Roads, and in authorizing the sale of Motor Vehicle Highway Fund Bonds for the purpose of financing the City's share of such cost, the City Council hereby states that it does not intend at the present time to assess any part of such cost to prop erty adjoining said roads; IT IS FURTHER RESOLVED, that the City Clerk be, and she hereby is authorized and directed to forward a certified copy of this resolution to said Board of County itoad Commissioners. Councilman O'Neill returned at 8:58 P. M. A roll call vote was taken on the foregoing resolution with the following result: AYES: - O'Neill, Bagnall, Kleinert, Jones, Ventura, Daugherty and Grant. NAYS: None. *Councilman O'Neill abstained from voting which under Section 9 of Ordinance No. 27, as amended, is recorded as a yes vote. The President declared the resolution adopted. At 9:00 o'clock P. M., a recess was called, after which the meeting resumed with all members present who were named as present in the original roll call of this meeting, including Councilman O'Neill. Councilman Bagnall withdrew his support of the proposed resolutioh authoriz- ing the issuance of Motor Vehicle Highway Fund Bonds. The following preamble and resolution was offered by Councilman Ventura and supported by Councilman O'Neill: #353-57 WHEREAS, the City Council of the City of Livonia, County of Wayne, Michigan, deems it necessary to acquire and cons truct street improvements in the City, consisting of widening Middle Belt Road from Plymouth Road to Joy Road, including paving the widened portion and work incidental thereto, Page 2856 paving Farmington Road from Joy Road to Plymouth Road and work incidental thereto, paving that part of Joy Road located in the City from Middle Belt Road to Farmington Road and work incidental thereto, and paving Merriman Road for a distance of arae hundred (100) feet south and one hundred (100) feet north of Plymouth Road and work incidental thereto; said improvements to be undertaken jointly with the Board of County Road Commissioners of the County of Wayne, Michigan, pursuant to contract. AND WHEREAS, the City Council estimates the City's share of the cost of said improvements, including financial and legal expenses in con- nection with the issuance of the bonds, to be Three Hundred Three Thousand ($303,000.00) Dollars; AND WHEREAS, the City is authorized to expend Motor Vehicle High- way Funds allocated to it under the provisions of Section 13 of Act 51, Public Acts of Michigan, 1951, as anended, for the foregoing purposes; AND WHEREAS, the City Council deems it to be in the best interest of the City to finance part of the City's share of the cost of said improve- ments by borrowing the sum of $300,000.00 and issuing bonds of the City therefor, pursuant to the provisions of Act 175, tublic Acts of Michigan, 1952; the balance of the cost of the City's share shall be paid from cash on hand and legally available for such purpose. AND WHEREAS, the revenues received by the City of Livonia from the Motor Vehicle Highway Fund pursuant to Act 51, Public Acts of Michigan, 1951, as amended, in the five (5) year period preceding the contemplated borrowing are more than sufficient to comply with all the requirements specified in Section 4 of Act 175, Public Acts of Michigan, 1952. NC11, THEREFORE, BE IT RESOLVED THAT: 1. The plans and estimates of cost of the improvements as set forth in the preamble hereto are hereby approved and adopted. 2. The period of usefulness of said improvements set forth in the preamble hereto is estimated to be not less than thirty (30) years. 3. The City Council of the City of Livonia hereby determines to borrow the sum of $300,000.00 and issue bonds of the City therefor pur- suant to the provisions of Act 175, Public Acts of Michigan, 1952, for the purpose of providing funds to pay part of the City's share of the cost of the improvements set forth in the preamble hereto. 4. Said bonds shall be designated 1957 MOTOR VEHICLE HIGHWAY FUND BONDS and shall consist of three hundred (300) bonds of the denomination of $1,000 each, numbered consecutively in direct order of maturity from 1 to 300, both inclusive, dated as of July 1, 1957, and payable serially as follows: $15,000.00 July 1st of each year from 1958 to 1962, both inclusive; $20,000.00 July 1st of each year from 1963 to 1967, both inclusive; $25,000.00 July 1st of each year from 1968 to 1972, both inclusive. Said bonds shall bear interest at a rate or rates not exceeding four and one-half (ii.-1/2%) per cent per annum, payable on January 1, 1958, and semi- Page 2857 annually thereafter on July 1st and January 1st of each year, both principal and interest to be payable at a bank or trust company to be designated by the purchaser of the bonds. Bonds numbered 1 to 175, both inclusive, maturing in the years 1958 to 1967, both inclusive, shall not be subject to redemption prior to maturity. Bonds numbered 176 to 300, both inclusive, maturing in the years 1968 to 1972, both 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 July 1, 1967, at par and accrued interest to the date fixed for redemption, plus a premium as follows: $20.00 on each bond called for redemption prior to July 1, 1969; $10.00 on each bond called for redemption on or after July 1, 1969, but prior to maturity of the bond. Notice of redemption shall be given to holders of bonds to be redeemed by publication of such notice at least once not less than thirty days before the date fixed for redemption in a newspaper circulated in the State of Mich- igan which carries, as part of its regular service, notices of sale of muni- cipal bonds. No further interest shall accrue on bonds called for redemption after the date fixed for redemption provided the City has money available for such redemption with the paying agent. 5. For the purpose of providing moneys to pay the principal of and interest on the bonds herein authorized, and in accordance with the provisions of Act 175, Public Acts of Michigan, 1952, there is hereby made an irrevocable appropriation of the amount necessary to pay the principal of and interest on the bonds herein authorized from the moneys to be derived from State-collected taxes returned to the City of Livonia for highway pur- poses, pursuant to law, and the Treasurer of the City of Livonia is hereby directed, during each year that any of the principal of and interest on the indebtedness herein authorized remains outstanding and unpaid, to set aside in a separate depositary account, to be designated 1957 MOTOR VEHICLE HIGH- WAY FUND BOND DEBT RETIREMENT FUND, sufficient moneys from revenues received during each such year from the Motor Vehicle Highway Fund pursuant to law to pay the principal of and interest on the installment of such indebtedness next maturing. 6. Pursuant to the authorization of Act 175, Public Acts of Michigan, 1952, and as additional security for the prompt payment of the principal and interest on the bonds herein authorized, there is hereby ir- revocably pledged the full faith and credit of the City of Livonia. 7. Said bonds shall be signed by the Mayor and countersigned by the City Clerk and City Treasurer and the corporate seal of the City shall be affixed thereto, and the interest coupons annexed to said bonds shall bear the facsimile signatures of the Mayor and City Treasurer; said bonds, when executed, shall be delivered to the Treasurer and be delivered by him to the purchaser thereof on payment of the purchase price, in accordance with the bid therefor, when accepted. 8. Said bonds and the attached coupons shall be in substantially the following form. Page 2858 UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF WAYNE CITY OF LIVONIA 1957 MOTOR VEHICLE HIGHWAY FUND BOND No. $ 1,000.00 KNOW ALL MEN BY THESE PRESENTS that the CITY OF LIVONIA, County of Wayne, Michigan, for value received hereby promises to pay to the bearer hereof the sum of ONE THOUSAND DOLLARS lawful money of the United States of America, on the first day of July, A. D., 19,__,, with interest thereon from the date hereof until paid at the rate of per cent per annum, payable on January 1, 1958, and semi-annually thereafter on the first day of July and January of each year, upon presentation and surrender of the proper interest coupons hereto annexed as they severally become due. Both principal of and interest on this bond are payable at , Michigan, and for the prompt pay- ment of this bond, both principal and interest, the full faith, credit and resources of the City of Livonia are hereby irrevocably pledged. This bond is one of a series of three hundred (300) bonds of even date and like tenor, except as to date of maturity , aggregating the principal sum of $300,000.00, issued pursuant to authority of Act 175, Public Acts of Michigan, 1952, and pursuant to resolution of the City Council adopted May 15, 1957, for the purpose of defraying part of the City's portion of improving certain county roads in said City. Bonds of this issue, numbered 1 to 175, both inclusive, maturing in the years 1958 to 1967, both inclusive, are not subject to redemption prior to maturity. The right is reserved of redeeming bonds numbered 176 to 300, both inclusive, maturing in the years 1968 to 1972, both inclusive, at the option of the City, in in- verse numerical order, on any interest payyment date on or after July 1, 1967, at par and accrued interest to the date fixed for redemption, plus a premium as follows: $20.00 on each bond called for redemption prior to July 1, 1969; $10.00 on each bond caJ1l ed for redemption on or after July 1, 1969, but prior to maturity of the bond. Notice of redemption shall be given to holders of bonds to be redeemed by publication of such notice at least once not less than thirty days before the date fixed for re- demption in a newspaper circulated in the `State of Michigan which carries, as part of its regular service, notices of sale of municipal bonds. No further interest shall accrue on bonds called for redemption after the date fixed for redemption provided the City has money available for such redemption with the paying agent. This bond and the interest thereon are payable from the proceeds of State- collected taxes returned to the City of Livonia for road purposes pursuant to law; and the resolution a un.oriin;; t he issuance and sale of said bonds contains an irrevocable appropriation of the amount necessary to pay the principal of and interest on this bond and the series of bonds of which this is one from the moneys derived from such State- collected taxes so returned to the City of Livonia for highway purposes which have not Page 2859 been therefore specifically allocated and pledged for the payment of indebtedness and in case of the insufficiency of said fund out of the general funds of the City of Livonia; and it is hereby certified and recited that all acts, conditions and things required to be done, exist and happen, precedent to and in the issuance of said series of bonds of which this is one, in order to make them valid and binding obligations of saidCity„ have been done, exist and have happened in regular and due form and time as required by law, and that the total indebtedness of said C ity, including the series of bonds of which this is one, does not exceed any constitutional, charter or statutory limitation. IN WITNESS WHEREOF, the City of Livonia, County of Wayne, Michigan, by its City Council, has caused this bond to be signed in the name of said City by its Mayor and countersigned by its City Clerk and City Treasurer and its corporate seal to be affixed hereto, and has caused the annexed interest coupons to be executed by the facsimile signatures of the Mayor and City Treasurer, as of the first day of July, A. D., 1957. CITY OF LIVONIA By Mayor (SEAL) Countersigned: City Treasurer City Clerk (Form of Coupon) No. On the first day of , A.D., 19___ _, the CITY OF LIVONIA, County of Wayne, Michigan, hereby promises to pay to the bearer hereof the sum of Dollars at , Michigan, being the semi-annual interest due that date on its 1957 Motor Vehicle Highway Fund Bond dated July 1, 1957, No. . Mayor City Treasurer 9. 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 Michigan Investor of Detroit, Michigan, and The Livoriian, Livonia, Michigan, and the Livonia News, fixing the date of sale for a regular or special meeting of the City Council occurring at least seven (7) full days after the date of such application. 10. The notice of sale of said bonds shall be in the following form, subject to any chahges that may be required therein by the Municipal Finance Commission: Page 2860 NOTICE OF SALE $300,000.00 CITY OF LIVONIA, COUNTY OF AYNE, MICHIGAN 1957 MOTOR VEHICLE HIGHWAY FUND BON] Sealed bids for the purchase of 1957 Motor Vehicle Highway Fund Bonds to be issued by the City of Livonia, County of Wayne, Michigan, of the par value of $300,000.00 will be received by the undersigned at her office in the City Hall in said C ity until 7:30 o'clock P. M., Eastern Standard Time, on , the day of 5 1957, at which time and place said bids will be publicly opened and read. Said bonds will be dated July 1, 1957, will be three hundred (300) coupon bonds of the denomination of X1,000.00 each, will be numbered consecutively in the direct order of their maturity from 1 to 300, both inclusive, and will bear interest from their date at a rate or rates not exceeding four and one-half (4-1/2%) per cent per annum, expressed in multiples of 1/4 of 1%, said interest to be payable on January 1, 1958, and semi- annually thereafter on July 1st and January 1st of each year. The interest rate for each coupon period on any one bond shall be at one rate only. Accrued interest to the date of delivery ae such bonds must be paid by the purchaser at the time of delivery. Said bonds will mature serially as follows: $15,000.00 Juiy 1st of each year from 1958 to 1962, both inclusive; $20,000.00 July 1st of each year from 1963 to 1967, both inclusive; $25,000.00 July 1st of each year from 1968 to 1972,both inclusive. Bonds of this issue numbered 1 to 175, both inclusive, maturing in the years 1958 to 1967,both inclusive, shall not be subject to redemption prior to maturity. Bonds numbered 176 to 300, both inclusive, maturing in the years 1968 to 1972, both 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 July 1, 1967, at par and accrued interest to the date fixed for redemption, plus a premium as follows: $20.00 on each bond called for redemption prior to July 1, 1969; $10.00 on each bond called for redemption on or after July 1, 1969, but prior to maturity of the bond. Notice of redemption shall be given to holders of bonds to b e redeemed by publication of such notice at least once not less than thirty days before the date fixed for re- demption in a newspaper circulated in the State of Michigan which carries, as part of its regular service, notices of sale of municipal bonds. No further interest shall accrue on bonds called for redemption after the date fixed for redemption provided the City has money available for such redemption with the paying agent. Both principal and interest will be payable at a bank or trust company to be designated by the purchaser of the bonds. For the purpose of awarding tke bonds, 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 bonds from (Here insert the first day of the month next follow- Page 2861 ire the date of receiving bids or the date of the bonds, whichever is later) to their maturity and deducting therefrom any premium. The bonds will be awarded to the bidder whose bid on the above computation produces the lowest interest cost to the City. No proposal for the purchase of less than all of the bonds or at a price less than their par value will be considered. The bonds are to be issued pursuant to the provisions of Act 175, Public Acts of Michigan, 1952, and are issued in anticipation of Motor Vehicle Highway Fund payments to be received by the City of Livonia, and said bonds will pledge the full faith and credit of the City of Livonia for their payment. A certified or cashier's check in the amount of $6,000.00, drawn upon an in- corporated bank or trust company, payable to the order of the Treasurer of the City of Livonia, must accompany each bid as a guaranty of good faith on the part of the bidder, to be forfeited as liquidated damages if such bid is accepted and the bidder fails to take up and pay for the bonds. No interest will be allowed on the good faith checks and checks of unsuccessful bidders will be promptly returned to each bidder's repre- sentative or by registered mail. Bids shall be conditioned upon the unqualified opinion of Miller, Canfield, Paddock and Stone, attorneys of Detroit,Michigan, approving the legality of the bonds. The cost of such opinion shall be paid by the City. The cost of printing the bonds shall be paid by the purchaser. Bonds will be delivered at Detroit, Michigan. The right is reserved to reject any or all bids. Envelopes containing the bids should be plainly marked "Proposal for Bonds." City Clerk 11. A copy of this resolution shall be published in The Livonian of Livonia, Michigan, a newspaper of general circulation in the City of Livonia, Michigan, and the Livonia News, for three (3) successive weeks before this resolution becomes effective. 12. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and they hereby are rescinded. By Councilman Kleinert, seconded by Councilman Jones, it was RESOLVED that, the proposed resolution authorizing the issuance of Motor Vehicle Highway Fund Bonds be amended to strike out any mention of the Livonia News. A roll call vote was taken on the foregoing resolution with the following result: AYES: Bagnall and Kle ine rt. NAYS: O'Neill, Jones, Ventura, Daugherty and Grant. The President declared the resolution denied. Page 2862 A roll call vote was taken on the foregoing resolution #353-57, with the following result: AYES: O'Neill, Bagnall, Kleinert, Jones, Ventura, Daugherty and Grant. NAYS: None. The President declared the resolution adopted. On motion of Councilman Kleinert, seconded by Councilman Bagnall and unanimously adopted, this 39th special meeting of the Council of the City of Livonia was duly adjourned at 9:16 P. M., May 15,1957. e . Clark, City Clerk