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Home My WebLink AboutCOUNCIL MINUTES 1955-07-01 SPECIAL Page 1936 MINUTES OF THE THIRTIETH SPECIAL MEETING OF THE COUNCIL OF THE CITY OF LIVONIA On July 1, 1955, the above meting was held at 33001 Five Mile Road, Livonia, Michigan, and was called to order at approximately 5:50 P. M., by the President of the Council, John T. Daugherty. Roll was called with the following result: Present-- John T. Daugherty, David L. Jones, Harry R. Killam, Rudolf R. Kleihert and John W. Whitehead. Absent-- Nettie Carey and Wilson W. Edgar. Mr. Edgar waived his right to ro tics of special meetings by letter dated June 20, 1955. Councilman Kleinert introduced the following Ordinance: NO. 102. AN ORDINANCE TO AMEND SECTIONS 7, 8 AND 9 OF ORDINANCE NO. 98 OF THE CITY OF LIVONIA ENTITLED: "AN ORDINANCE COMBINING ALL SEWAGE DISPOSAL FA- CILITIES OF THE CITY OF LIVONIA INTO A SINGLE SEWAGE DISPOSAL SYSTEM; PROVIDING FOR THE MAIN- TENANCE AND OPERATION OF SAID SYSTEM ON A PUBLIC UTILITY BASIS; PROVIDING FOR THE FIXING AND COL- LECTION OF RATES AND CHARGES TO USERS AND BENE- FICIARIES OF SAID SYSTEM AND CERTAIN STORM SEWERS CONSTRUCTED; PROVIDING FOR TRE ALLOCATION AND USE OF THE REVENUES DERIVED FROM THE COLLECTION OF SUCH RATES AND CHARGES; PROHIBITING UNAUTFORIZED CONNECTIONS, AND PROVIDING PENALTIES FCR THE VIOLATION THEREOF," AS SUBSEQUENTLY AMENDED BY ORDINANCE NO. 100 OF THE CITY OF LIVONIA. THE CITY OF LIVONIA ORDAINS: Section 1. Sections 7, 8 and 9 of Ordinance No. 98 of the City of Livonia, duly adopted and approved on April 18, 1955, as amended by Ordinance No. 100 of the City of Livonia, duly adopted and approved on May 17, 1955, are hereby amended to read as follows: Section 7. All rates and charges herein specified collected prior to July 1, 1955, shall be allocated arri deposited as follows: (a) Such rates and charges collected from users of the District No. I sewers, constructed under the provi sions of Ordinance No. 26, as amended, of the City, shall be irms deposited in the Receiving Fund set up under the provisions of said Ordinance No. 26, as amended, and remain subject to the requirements of said Ordinance until July 1, 1955, Page 1937 after which time such moneys shall be allocated and trans- ferred in accordance with the requirements of Section 9 it/Am of this Ordinance. (b) Such rates and charges collected from users of the District No. II sewers, constructed under the provisions of Ordinance No. 42 of the City, shall be deposited in the Receiving Fund set up under the provisions of said Ordinance No. 42 and remain subject to the requirements of said Ordinance until said July 1, 1955, after which time such moneys shall be allocated and transferred in accordance with the requirements of Section 9 of this Ordinance. (c) Such rates and charges collected from users of the other sewers of the System shall be retained in a separate depositary fund temporarily, and be subject to the allocation and transfer requirements set forth in Section 9 of this Ordinance. Section 8. The gross revenues of the Sewage Disposal System de- rived from the collection of the rates and charges imposed by the provisions of Section 5 of this Ordinance, from and after July 1, 1955, are hereby ordered to be set aside as collected in NATIONAL BANK OF DEMOIT (Cranston Branch), Detroit, Michigan, a bank duly qualified to do business in Michigan, in an account to be designated Sewage Disposal System Receiving Fund (here- inafter referred to as the "Receiving Fund"), and said revenues so deposited are pledged for the purpose of the following funds and shall be transferred from the Receiving Fund periodically in the manner and at the times herein- after specified. (A) OPERATION AND MAINTENANCE FUND: Out of the revenues in the Receiving Fund there shall first be set aside during each quarterly period into a separate depositary account designated OPERATION AND MAINTENANCE FUND, a sum sufficient to provide for the payment of the next quarter's current expenses of administration and operation of the Sewage Disposal System and such current expenses for the maintenance thereof as may be necessary to preserve the same in good repair and working order. The City Council, prior to the commencement of each operating year, shall adopt a budget covering the foregoing expenses for each year and such total expenses shall not exceed the total amount specified in said budget unless approved by a five-sevenths (5/7) vote of the menbers of the City Council. (B) CONTRACT PAYMENT FUND: There shall next be established and maintained a separate de- positary account designated CONTRACT PAYMENT FUND, the honeys from time to time on deposit therein to be used solely for the purposes herein ibm specified. All moneys remaining in the Receiving Fund after the foregoing Page 1938 provisions have been made for the requirements of the Operation and Maintenance Fund, shall semi-annually on December 1st and June 1st of each year be set aside and transferred to the Contract Payment Fund, which said moneys shall then be used as follows and in the following priority: First: For the fixed debt retirement payments due on January 1st and July lst of each year, representing interest on the bonds due on January 1st and principal and interest due on July 1st of each year. Second: To the payment of balances owing by the City to the consulting engineers, George Jerome & Co., pursuant to the provisions of their contract with the City for the engineering and supervisory services relative to the construction of the sewers specified in the contract. Third: To the repayment to the City of the advances specified in the contract in the amount of $160,569.02, it appearing tht as a result of construction bids received on June 28, 1955, there will not be sufficient moneys remaining after the construction of the sewers specified in tle contract, out of the proceeds of the sale of the bonds, to fully reimburse the City for said advances as contemplated by the provisions of the contract: Provided, However, that such amounts so used for such purpose shall not exceed $40,000.00 in any operating year, until said advances are repaid in full. Fourth: To the establishment of a Contract Payment Reserve Fund which shall be maintained as a separate account, until said funds shall equal the maximum principal and interest becoming due on the bonds in any future year. The moneys in said Contract Payment Reserve Fund shall be used solely for the payment of the fixed debt retirement payments to the extent of any de- ficiency in current revenues available therefor. Any moneys so used shall be replaced from the next revenues available therefor. Moneys in the Contract Payment Reserve Fund may be invested in obligations of the United States of America, and any income therefrom shall be credited to said fund. Fifth: For advance payments or redemption of bonds prior to maturity in accordance with the authorization contained in Section 9 of the County Ordinance and the provisions of the contract, at the written option of the City, or, at the option of the City Council for the construction of additional extensions and improvements to the Sewage Disposal System, or the payment of indebtedness incurred therefor. Section 9. On or before July 20, 1955, an audit and determina- tion shall be made by the auditor of the City of the fund balances on imm hand as of said date in (a) any of the funds established pursuant to the provisions of Ordinance No. 26, as amended, of the City; (b) any of the funds established pursuant to the provisions of Ordinance No. 42 of the Page 1939 City; and (c) the funds established pursuant to the provisions of Section ime 7, subsection (c) of this Ordinance. Such funds shall then, and on or before July 21, 1955, be transferred into one consolidated account, and the moneys in said account used and allocated in accordance with the following requirements, and in the following priority: First: Subsequent to the sale of the bonds, and on or prior to August 30, 1955, there shall be deposited in trust with Detroit Trust Company, Detroit, Michigan, a sufficient amount of such moneys to pay (a) the interest on Sewage Disposal System No. I Revenue Bonds, and Sewage Disposal System No. II Revenue Bonds, due on September 1, 1955, in accordance with the provisions of the con- tract, and (b) there shall be transferred to the Board of County Road Commissioners of the County of Wayne, acting for and on be- half of the County of Wayne, for deposit by them with Detroit Trust Company as a portion of the sum required to be deposited by them pursuant to the provisions of Section 5(e) of the con- tract, the sum of $208,000.00, said sum thereby reducing by a corresponding amount the total sum required to be deposited by said Board under said provisions of the contract out of the pro- ceeds of the sale of the bonds, the total sum specified in said contract provision to be thus provided as follows: $858,000.00 By the Board out of the proceeds of the sale of the bonds $208,000.00 By the Board from the moneys herein trans- ferred to the Board $1,066,000.00 - Total Second: The balance of said moneys shall be deposited into the Receiv- ing Fund established by this Ordinance and subject to the re- quirements as set forth in Section 8 hereof. If, for any reason, the bonds are not sold and delivered prior to September 1, 1955, all funds in the consolidated account herein referred to or in any of the funds established pursuant to the provisions of Section 8 of this Ordinance, shall be retransferred to the accounts set up under the provisions of Ordinances No. 26, as amended, and 42 of the City, or as to those moneys collected from users of sewers out side of the area served by the District No. I sewers or the District No. II sewers, shall be trans- ferred to a temporary account subject to future disposition by the City as may be authorized or required by law. Section 2. This Ordinance shall be immediately re corded by the City Clerk in "The Record of Ordinances" book as soon as it is adopted, which record shall be authenticated by the signatures of the Mayor and City Clerk in accordance with the requirements of the City Charter, and shall be published once in The Livonian, a newspaper of general circulation in said City within ten (10) days after its passage. Section 3. This Ordinance is hereby declared to be an emergency Ordinance immediately necessary to provide for the financing of sewers necessary for the public health of the citizens of the City, and shall become effective on July 1, 1955 Page 1940 being the date of the meeting of the City Council where it was introduced and adopted. Iwom A roll call vote was conducted on the foregoing ordinance with the following result: AYES: Jones, Killam, Kleinert, Whitehead and Daugherty. NAYS: None. The President declared the foregoing ordinance duly adopted and would become effective immediately. On motion of Councilman Killam, seconded by Councilman Jones and unanimously adopted, this 30th special meeting of the City Council was duly adjourned at 5:55 P. M., July 1, 1955. --7 L • % 7?( .(- Mar = W. lark, City Clerk Attested: John Daugherty, President o the Counc i1 �i:olf . Kleinert, Vice President of the Council