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City
of
Council Minutes of February 11, 2003
Mayor King called the meeting to order at
MOTION by Tucci
SUPPORTED by Rossman
Resolved, that the Agenda for February 11, 2003 be approved as revised.
MOTION ADOPTED
MOTION by Rossman
SUPPORTED by Bowdell
Resolved, that the Minutes of the January 21, 2003 Council Meeting be approved as presented.
MOTION ADOPTED
MOTION by Rossman
SUPPORTED by Tucci
Resolved, that the Minutes of the January 28, 2003 Special Meeting be approved as presented.
MOTION ADOPTED
MOTION by Babbage
SUPPORTED by Bowdell
Resolved, that Claims and Accounts in the amount of $6,289,574.43 be approved for payment.
MOTION ADOPTED
MOTION by Burtka
SUPPORTED by Tertzag
Resolved, that the City of
MOTION ADOPTED
MOTION by Babbage
SUPPORTED by Rossman
Resolved, that effective 2/20/03 through 11/30/03, Courtney Nicholls be appointed to the position of Deputy Election Clerk at a salary of $32,500 annually and shall be entitled to all benefits described in the Administrative/Appointee Benefit package.
MOTION ADOPTED
MOTION by Tertzag
SUPPORTED by Babbage
Resolved, that
the City of Allen Park acknowledges that the counties of Livingston, Macomb,
Monroe, Oakland and Wayne and also Windsor, Ontario are infested with the
Emerald Ash Borer (EAB). The Emerald
Ash Borer is currently destroying Ash Trees at an accelerated rate and that the
cost to contain this infestation approximately $50 - $80 million, which is
beyond the financial resources of the City of
Now, Therefore, Be It Resolved, that the City Council of the City of Allen Park requests Federal Assistance to fund an Emerald Ash Borer program and petitions President Bush, US Congressman Conyers, US Senators Stabenow and Levin, State Senator Basham, State Representatives O’Neil and Plakas to coordinate their efforts for Federal Assistance to eradicate the devastation created by the Emerald Ash Borer.
MOTION ADOPTED
MOTION by Babbage
SUPPORTED by Rossman
Resolved, the Michael Dodd is appointed to the position of Firefighter pending background investigation, physical and psychological examinations and probationary period, effective date to be no later than March 6, 2003.
MOTION ADOPTED
Fire Sergeant Fred Millner received congratulations on his promotion.
MOTION by Babbage
SUPPORTED by Rossman
Resolved, that the2002 Audit Report, as given by City Auditor Randall Darnell, be accepted.
MOTION ADOPTED
MOTION by Rossman
SUPPORTED by Tertzag
Resolved, that any or all
elected officials be authorized to attend the MML Legislative Conference in
MOTION ADOPTED
MOTION by Rossman
SUPPORTED by Burtka
Whereas, Dr. John Hartig of the Greater American Heritage River Initiative has contacted the Michigan Department of Natural Resources concerning the availability of trees for local Downriver Greenway areas; and
Whereas, the MDNR can purchase trees through a program with the National Tree Trust and is willing to provide these trees at charge to a community for public purposes; and
Whereas, Dr. Hartig has devise the MDNR of the proposed Allen Park Linked Greenway project; and
Whereas, the MDNR has agreed to provided trees free of charge for planting along the Allen Park Linked Greenway; and
Whereas, the MDNR will deliver the trees directly to the planting locations and the MDNR will allow planting of the trees to be performed by volunteer groups and civic organizations; and
Whereas, this program will allow the City of Allen Park to greatly enhance and provided a more serene setting for its Greenway route a little or no expense; therefore
Be It Resolved, that Mark Gahry, Director of Public Service and Michael Donofrio of the Beautification Commission coordinate this tree planting project, including but not limited to, communication with the MDNR, determining the number, location and type of trees and arranging for volunteers to assist in the planting of the trees; and
Be It Further Resolved, that the Allen Park Department of Public Service prepares the tree sites for planting.
MOTION ADOPTED
Lynn Ketelhut presented the results of the Allen Road Trial Alignment Evaluation Report.
MOTION by Tertzag
SUPPORTED by Tucci
Resolved, that the Moslem Shriners be authorized to conduct their 25th Annual Hospital Fund Drive in Allen Park on June 20, 21 and 22, 2003.
MOTION ADOPTED
MOTION by Rossman
SUPPORTED by Tucci
Resolved, that the Allen Park Late Bloomers Garden Club be authorized to install a Blue Star Memorial Marker in Champaign Park, pending concurrence from the Veterans Affairs Commission and the Greenway Links.
MOTION ADOPTED
MOTION by Tucci
SUPPORTED by Rossman
Resolved, to proclaim March 4, 2003 as Constitution Day in the City of Allen Park.
MOTION ADOPTED
MOTION by Babbage
SUPPORTED by Burtka
Resolved, that the Father Saylor Council of the Knights of Columbus be authorized to solicit funds in the City of Allen Park on April 11, 12, and 13, 2003 or due to inclement weather, April 18, 19 and 20, 2003.
MOTION ADOPTED
MOTION by Rossman
SUPPORTED by Tucci
Resolved, that the American Legion Auxiliary, Post 409, be given permission to distribute poppies in the City of Allen Park on May 8, 9, and 10, 2003.
MOTION ADOPTED
MOTION by Tertzag
SUPPORTED by Rossman
Resolved, that Dearborn/Lorraine Cab Company is approved to renew their taxicab license, pending vehicle and driver police check, insurance and payment of fees.
MOTION ADOPTED
MOTION by Tertzag
SUPPORTED by Babbage
Resolved, to concur with Patricia Swartout, Block Grant Coordinator to approve her recommendations for distributions of the FY 2003-05 Community Block Grant Funds.
MOTION ADOPTED
MOTION by Tertzag
SUPPORTED by Rossman
RESOLUTION RELATING TO
BUILDING AUTHORITY REFUNDING
City of Allen Park
County of Wayne, State of Michigan
Minutes of a regular meeting of the City Council of the City of Allen Park, County of Wayne, State of Michigan, held in said City on the 11th day of February, 2003, at 7:30 o’clock p.m. Eastern Standard Time.
PRESENT: Members _________________________________________
_________________________________________________
ABSENT: Members _________________________________________
The following preamble and resolution were offered by Member _______________ and supported by Member ___________________:
WHEREAS, the Commission of the Allen Park Building Authority (the “Authority”) has undertaken proceedings to refund all or a portion of the Authority’s 1993 Building Authority Limited Tax General Obligation Bonds (District Court Facility); and
WHEREAS, such refunding will result in lower costs to the City of Allen Park (the “City”) for the use of facilities leased to the City; and
WHEREAS, a refunding contract has been prepared respecting said refunding; and
WHEREAS, it is necessary that the City undertake and make certain covenants and representations respecting the Authority’s proposed refunding bonds.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City shall, to the extent permitted by law, take all actions within its control necessary to maintain the exclusion of the interest on the Authority’s refunding bonds from gross income for federal income tax purposes 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 bond proceeds and moneys deemed to be bond proceeds, and to prevent the Authority’s refunding bonds from being or becoming “private activity bonds” as that term is used in Section 141 of the Code.
2. The Commission hereby authorizes the Authority to prepare and circulate a preliminary and final official statement in connection with the refunding bonds and, if applicable, further authorizes the City Administrator to execute such official statements in behalf of the City.
3. The City Administrator be and is further authorized to execute any certificates in behalf of the City necessary for the issuance of such refunding bonds.
4. The City hereby covenants to comply with Securities and Exchange Commission Rule 15c2-12 (the "Rule"), and in connection therewith appoints the City's Finance Director as its "Disclosure Representative" in accordance with the Rule.
5. The Refunding Contract dated as of March 1, 2003 by and among the City and the Authority be and the same is hereby approved and the Mayor and City Clerk be and are hereby directed to execute said contract in behalf of the City.
6. All resolutions and parts of resolutions insofar as the same conflict with the provisions of this resolution be and the same hereby are rescinded.
AYES: Members _________________________________________
_________________________________________________
NAYS: Members _________________________________________
RESOLUTION DECLARED ADOPTED.
__________________________________
Clerk, City of Allen Park
City Administrator Welch informed the Council of the Agreement with the Allen Park School in regards to the Federal Storm Water Permits.
MOTION by Babbage
SUPPORTED by Rossman
Whereas, the Citizens of Allen Park have approved, by a majority vote, the millage necessary to make the bond payments for the Allen Park Community Center; and
Whereas, the Michigan Department of Natural Resources has provided a stipulated approval of an extension for the $500,000 grant toward construction; and
Whereas, the stipulation from the DNR is that the Community Center begin construction no later than August 31, 2003,
Be It Resolved, that the Allen Park Mayor and City Council accept by this Resolution this condition, as well as the original requirements of the grant.
Be It Further Resolved, that the City of Allen Park greatly appreciates the efforts of the DNR and State Representative William O’Neil to assist the City of Allen Park and its Citizens.
MOTION ADOPTED
City Administrator Welch related information in regards to the City of Detroit water rates and the State of Michigan discretionary revenue sharing.
MOTION by Tertzag
SUPPORTED by Bowdell
Resolved, to concur with Administrator Welch and being the process of developing a Strategic Plan for the City of Allen Park.
MOTION ADOPTED
MOTION by Babbage
SUPPORTED by Rossman
Resolved, to concur with the request from the 24th District Court, to approve the revised 2002-003 Fiscal Year Budget, totaling $162,504 and the appropriation of $108,336 as the City of Allen Park’s apportioned share of funding for Court Services, the following line items will be reduced by $25,664:
101-000-656-000 District Court Services Revenue and 101-999-970-000 District Court Services Expenditures.
MOTION ADOPTED
MOTION by Rossman
SUPPORTED by Babbage
City of Allen Park
County of Wayne, State of Michigan
_____________________
Resolution Authorizing
General Obligation Unlimited Tax Bonds, Series 2003
___________________________
Minutes of a regular meeting of the City Council of the City of Allen Park, County of Wayne, State of Michigan, held on February 11, 2003, at 7:30 o’clock p.m., Eastern Standard Time.
PRESENT: Members ______________________________________________________
______________________________________________________________
ABSENT: Members ______________________________________________________
The following preamble and resolution were offered by Member _____________ and supported by Member ______________:
WHEREAS, the qualified electors of the City of Allen Park, County of Wayne, State of Michigan (the “Issuer”), at the election duly called and held on January 28, 2003, did by more than the required majority of those voting approve the following proposition:
Civic
Arena Bonding Proposition
Shall
the City of Allen Park, County of Wayne, Michigan, borrow the sum of not to
exceed Six Million Five Hundred Thousand Dollars ($6,500,000) and issue its
Unlimited Tax Bonds therefore payable in not to exceed thirty (30) annual
installments for the purpose of paying part of the costs of acquiring,
constructing, furnishing and equipping improvements and an addition to the Frank
J. Lada Civic Arena together with parking facilities and all attachments and
appurtenances related thereto? The
estimated mills to be levied in the year 2003 to pay the bonds is .238 mills
($.238 per $1,000 taxable value) and the estimated average millage rate required
to retire the bonds is .344 mills ($.344 per $1,000 of taxable value).
AND WHEREAS, it is the determination of the City Council that at this time unlimited tax general obligation bonds in the principal amount of Four Million Nine Hundred Twenty Five Thousand Dollars ($4,925,000) should be issued for the purposes described in the foregoing proposition (the “Project”);
NOW, THEREFORE, BE IT RESOLVED THAT:
1. Bonds of the Issuer designated General Obligation Unlimited Tax Bonds, Series 2003 (the “Bonds”) are authorized to be issued in the aggregate principal sum of Four Million Nine Hundred Twenty Five Thousand Dollars ($4,925,000) for the purpose of paying part of the costs of the Project, including the costs incidental to the issuance, sale and delivery of the Bonds. The issue shall consist of bonds in fully-registered form of the denomination of $5,000, or multiples thereof not exceeding for each maturity the maximum principal amount of that maturity, numbered consecutively in order of registration, dated as of May 1, 2003. The Bonds shall bear interest, mature, be subject to redemption, and be payable at the times and in the manner set forth in Sections 6 and 7 hereof.
Interest shall be payable to the registered owner of record as of the 15th day of the month prior to the payment date for each interest payment. The record date of determination of registered owner for purposes of payment of interest as provided in this paragraph may be changed by the Issuer to conform to market practice in the future. Interest shall be payable by check or draft drawn on the Transfer Agent (as hereinafter defined) mailed to the registered owner at the registered address, as shown on the registration books of the Issuer maintained by the Transfer Agent. The principal of the Bonds shall be payable upon presentation and surrender to the Transfer Agent.
National City Bank of Michigan/Illinois, Troy, Michigan shall be appointed to serve as bond registrar, paying agent and transfer agent (the “Transfer Agent”) for this issue and be so designated in the Official Notice of Sale for the Bonds. The Treasurer of the Issuer is hereby authorized to execute one or more agreements with the Transfer Agent on behalf of the Issuer. The Issuer reserves the right to replace the Transfer Agent at any time upon written notice to the registered owners of record of the Bonds not less than sixty (60) days prior to an interest payment date.
2. The Bonds of this issue shall be executed in the name of the Issuer with the facsimile signatures of the Mayor and Clerk of the Issuer and shall have the seal of the Issuer, or a facsimile thereof, printed or impressed on the Bonds. No Bond shall be valid until authenticated by an authorized officer or representative of the Transfer Agent. The Bonds shall be delivered to the Transfer Agent for authentication and be delivered by the Transfer Agent to the purchaser or other person in accordance with instructions from the Clerk or Treasurer of the Issuer upon payment of the purchase price for the Bonds in accordance with the bid therefore when accepted. The Bonds may be issued in book entry-only form through the Depository Trust Company in New York, New York (“DTC”) and any officer of the Issuer is authorized to execute such custodial or other agreement with DTC as may be necessary to accomplish the issuance of the Bonds in book-entry-only form and to make such changes in the Bond form with the parameters of this resolution as may be required to accomplish the foregoing.
3. The Transfer Agent shall keep the books of registration for this issue on behalf of the Issuer. Any Bond may be transferred upon such registration books by the registered owner of record, 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 the payment by the bondholder requesting the transfer of any tax or other governmental charge required to be paid with respect to the transfer.
Unless waived by any registered owner of Bonds to be redeemed, official notice of redemption shall be given by the Transfer Agent on behalf of the Issuer. Such notice shall be dated and shall contain at a minimum the following information: original issue date; maturity dates; interest rates; CUSIP numbers, if any; certificate numbers (and in the case of partial redemption) the called amounts of each certificate; the place where the Bonds called for redemption are to be surrendered for payment; and that interest on the Bonds or portions thereof called for redemption shall cease to accrue from and after the redemption date.
In addition, further notice shall be given by the Transfer Agent in such manner as may be required or suggested by regulations or market practice at the applicable time, but no defect in such further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as prescribed herein.
4. The Treasurer shall open a separate depositary account with a bank or trust company designated by the City Council, designated 2003 GENERAL OBLIGATION UNLIMITED TAX DEBT RETIREMENT FUND (the “Debt Retirement Fund”), the moneys to be deposited into the Debt Retirement Fund to be specifically earmarked and used solely for the purpose of paying principal of and interest on the Bonds as they mature. All proceeds from taxes levied for the Debt Retirement Fund shall be deposited into the Debt Retirement Fund as collected. Commencing with the year 2003, there shall be levied upon the tax rolls of the Issuer for the purpose of the Debt Retirement Fund each year, in the manner required by the provisions of Act 34, Public Acts of Michigan, 2001, as amended, an amount sufficient so that the estimated collection therefrom will be sufficient to promptly pay, when due, the principal of and interest on the Bonds becoming due prior to the next annual tax levy; provided, however, that if at the time of making any such annual tax levy there shall be surplus moneys on hand in the Debt Retirement Fund for the payment of principal of and interest on the Bonds, then credit therefore may be taken against such annual levy for the Debt Retirement Fund.
5. The Treasurer is authorized and directed to open a separate depositary account with a bank or trust company designated by the City Council, to be designated as follows: 2003 GENERAL OBLIGATION BONDS CONSTRUCTION FUND (the “Construction Fund”) and deposit into said Construction Fund the proceeds of the Bonds less accrued interest and premium, if any, which shall be deposited into the Debt Retirement Fund. The moneys in the Construction Fund shall be used solely to pay the costs of the Project and the costs of issuance of the Bonds.
6. The Bonds shall be in substantially the following form:
STATE
OF
CITY OF
GENERAL OBLIGATION UNLIMITED TAX BONDS
SERIES 2003
Date of
Interest Rate Maturity Date Original Issue CUSIP
Registered Owner:
Principal Amount: Dollars
KNOW ALL MEN BY THESE PRESENTS, that the CITY OF ALLEN PARK, County of Wayne, State of Michigan (the “Issuer”), acknowledges itself to owe and for value received hereby promises to pay to the Registered Owner specified above, or registered assigns, the Principal Amount specified above, in lawful money of the United States of America, unless redeemed prior to maturity on the Maturity Date specified above with interest thereon until paid from the Date of Original Issue specified above or such later date to which interest has been paid, at the Interest Rate per annum specified above, first payable on September 1, 2003 and semiannually thereafter. Principal of this bond is payable at the corporate trust office of National City Bank of Michigan/Illinois, Troy, Michigan, or such other transfer agent as the Issuer may hereafter designate by notice mailed to the registered owner not less than sixty (60) days prior to an interest payment date (the “Transfer Agent”). Interest on this bond is payable to the registered owner of record as of the 15th day of the month preceding the interest payment date as shown on the registration books of the Issuer kept by the Transfer Agent by check or draft mailed by the Transfer Agent to the registered owner of record at the registered address. For prompt payment of this bond, both principal and interest, the full faith, credit and resources of the Issuer are hereby irrevocably pledged.
This bond is one of a series of bonds aggregating the principal sum of $4,925,000, issued for the purpose of paying the costs of acquiring, constructing, furnishing and equipping improvements and an addition to the City Civic Arena and paying the costs incidental to the issuance of the series of bonds in pursuance of a vote of the qualified electors of the Issuer voting thereon at an election duly called and held on January 28, 2003.
Bonds of this issue maturing in the years 2004 through 2013, inclusive shall not be subject to redemption prior to maturity. Bonds maturing in the years 2014 and thereafter shall be subject to redemption at the option of the Issuer, in such order as the Issuer shall determine, on any interest payment date on or after September 1, 2013, at par and accrued interest to the date fixed for redemption plus a redemption premium of ˝ of 1 percent of the principal amount of each bond called for redemption on or after September 1, 2013, but prior to September 1, 2017. No redemption premium shall be called on any bond redeemed on or after September 1, 2017.
Notice of redemption of any bond or portion thereof shall be given by the Transfer Agent at least thirty (30) days prior to the date fixed for redemption by mail to the registered owner at the registered address shown on the registration books kept by the Transfer Agent. Bonds shall be called for redemption in multiples of $5,000 and any bond of a denomination of more than $5,000 shall be treated as representing the number of bonds obtained by dividing the denomination of the bond by $5,000 and such bond may be redeemed in part. Notice of redemption for a bond redeemed in part shall state that upon surrender of the bond to be redeemed a new bond or bonds in aggregate principal amount equal to the unredeemed portion of the bonds surrendered shall be issued to the registered owner thereof. No further interest on a bond or portion thereof called for redemption shall accrue after the date fixed for redemption, whether presented for redemption or not, provided funds are on hand with the Transfer Agent to redeem the bond or portion thereof.
This bond is transferable only upon the registration books of the Issuer kept by the Transfer Agent by the registered owner of record in person, or by 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 registered bond or bonds in the same aggregate principal amount and of the same maturity shall be issued to the transferee in exchange therefore as provided in the resolution authorizing this bond and upon the payment of the charges, if any, therein prescribed.
This bond is payable out of the Issuer’s Debt Retirement Fund for this issue, and 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 and the series of bonds of which this is one, exist and have been done and performed in regular and due form and time as required by law, and that the total indebtedness of the Issuer, including this bond, does not exceed any constitutional, statutory or charter debt limitation.
This bond is not valid or obligatory for any purpose until the Transfer Agent’s Certificate of Authentication on this bond has been executed by the Transfer Agent.
IN WITNESS WHEREOF, the Issuer, by its legislative body, has caused this bond to be signed in the name of the Issuer by the facsimile signatures of its Mayor and Clerk and a facsimile of its corporate seal to be printed hereon, all as of the Date of Original Issue.
CITY OF
State of
By____________________________
Its Mayor
(SEAL)
By____________________________
Its City Clerk
(Form of Transfer Agent’s Certificate of Authentication)
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within-mentioned resolution.
National City Bank of Michigan/Illinois
Transfer Agent
By ______________________
Authorized ___________
DATE OF REGISTRATION:
[Bond printer to insert form of assignment]
7. The City Finance Director or Clerk shall fix a date of sale for the Bonds and publish notice of sale of the Bonds in the Detroit Legal News, Detroit, Michigan, or the Bond Buyer, New York, New York, which notice of sale shall be in substantially the following form subject to such changes as may be necessary to effect the purchase of municipal bond insurance:
OFFICIAL
NOTICE OF
$4,925,000
CITY OF
GENERAL OBLIGATION UNLIMITED TAX BONDS
SERIES 2003
SEALED BIDS for the
purchase of the above bonds will be received by the undersigned at the City
Clerk’s offices located at 16850 Southfield Road, Allen Park, Michigan
48101-2599, on Tuesday, the ___ day of April, 2003, until __:__ o’clock
p.m., Eastern ________ Time, at which time and place said bids will be publicly
opened and read. Sealed bids will
also be received simultaneously and publicly opened and read at the offices of
Bendzinski & Co. 607 Shelby,
ELECTRONIC BIDS: Electronic bids will also
be received on the same date and until the same time by Bidcomp/Parity as agent
of the undersigned. Further
information about Bidcomp/Parity, including any fee charged, may be obtained
from Bidcomp/Parity, Anthony Leyden or CLIENT SERVICES,
Bidders may choose any means or location to present bids but a bidder may not present a bid in more than one location or by more than one means.
BOND DETAILS: Said bonds will be registered bonds of the denomination of $5,000 or multiples thereof not exceeding for each maturity the maximum principal amount of that maturity, originally dated as of May 1, 2003, numbered in order of registration, and will bear interest from their date payable on September 1, 2003, and semiannually thereafter.
The bonds will mature on the 1st day of September of each of the years, as follows:
|
$ 25,000 |
|
2004 and 2005 |
|
50,000 |
|
2006 |
|
75,000 |
|
2007,2008 and 2009 |
|
100,000 |
|
2010 through 2014 |
|
125,000 |
|
2015 and 2016 |
|
150,000 |
|
2017, 2018 and 2019 |
|
175,000 |
|
2020, 2021 and 2022 |
|
200,000 |
|
2023 and 2024 |
|
225,000 |
|
2025 and 2026 |
|
250,000 |
|
2027 and 2028 |
|
275,000 |
|
2029 |
|
275,000 |
|
2030 |
|
300,000 |
|
2031 |
|
325,000 |
|
2032 |
|
350,000 |
|
2033 |
BOOK-ENTRY ONLY:
The bonds will be issued in book-entry only form as one fully registered
bond per maturity and will be registered in the name of Cede & Co., as
bondholder and nominee for The Depository Trust Company (“DTC”),
PRIOR REDEMPTION: Bonds of this issue maturing in the years 2004 to 2013, inclusive, are not subject to redemption prior to maturity. Bonds or portions of bonds in multiples of $5,000 maturing in the year 2014 and thereafter may be redeemed at the option of the Issuer, in such order as the Issuer shall determine and within any maturity by lot, on any interest payment date on or after September 1, 2013 at par and accrued interest to the date fixed for redemption plus a redemption premium of ˝ of 1% of the par value of each bond called for redemption on or after September 1, 2013, but prior to September 1, 2017. No premium will be paid on bonds called for redemption on or after September 1, 2017.
Notice of redemption of any bond or portion thereof shall be given by the transfer agent at least thirty (30) days prior to the date fixed for redemption by mail to the registered owner at the registered address shown on the registration books kept by the transfer agent. Bonds shall be called for redemption in multiples of $5,000 and any bond of a denomination of more than $5,000 shall be treated as representing the number of bonds obtained by dividing the denomination of the bond by $5,000 and such bond may be redeemed in part. Notice of redemption for a bond redeemed in part shall state that upon surrender of the bond to be redeemed a new bond or bonds in aggregate principal amount equal to the unredeemed portion of the bonds surrendered shall be issued to the registered owner thereof. No further interest on a bond or portion thereof called for redemption shall accrue after the date fixed for redemption, whether presented for redemption or not, provided funds are on hand with the transfer agent to redeem the bond or portion thereof.
INTEREST RATE AND BIDDING DETAILS: The bonds shall bear interest at a rate or rates not exceeding 8% per annum, to be fixed by the bids therefor, expressed in multiples of 1/8 or 1/20 of 1%, or both. The interest on any one bond shall be at one rate only and all bonds maturing in any one year must carry the same interest rate. The difference in interest rates bid on any bond may not be greater than 2% of the interest rate bid on any other bond. No proposal for the purchase of less than all of the bonds or at a price less than 99% of their par value will be considered.
TRANSFER AGENT AND REGISTRATION: Principal and interest shall be payable at National City Bank of Michigan/Illinois, Troy, Michigan, or such other transfer agent as the City of Allen Park (the “Issuer”) may hereafter designate by notice mailed to the registered owner of record not less than 60 days prior to an interest payment date. Interest shall be paid by check or draft mailed to the registered owner of record as shown on the registration books kept by the transfer agent as of the 15th day prior to an interest payment date. The bonds will be transferred only upon the registration books of the Issuer kept by the transfer agent.
PURPOSE AND SECURITY: The bonds were authorized at an election held January 28, 2003, and are issued for the purpose of paying the cost of public improvements. The bonds will pledge the full faith and credit of the Issuer for payment of the principal and interest thereon and will be payable from ad valorem taxes which may be levied without limitation as to rate or amount. The rights or remedies of bondholders may be affected by bankruptcy insolvency, fraudulent conveyance or other laws affecting creditors’ rights generally now existing or hereafter enacted and by the application of general principles of equity including those relating to equitable subordination.
GOOD FAITH:
A certified or cashier’s check drawn upon an incorporated bank or trust
company or a Financial Surety Bond, in the amount of $49,250, and payable to the
order of the Treasurer of the Issuer is required for each bid as a guarantee of
good faith on the part of the bidder, to be forfeited as liquidated damages if
such bid be accepted and the bidder fails to take up and pay for the bonds.
If a check is used, it must accompany each bid.
If a Financial Surety Bond is used, it must accompany each bid.
If a Financial Surety Bond is used, it must be from an insurance company
licensed to issue such bond in the State of
AWARD OF BONDS: The bonds will be awarded to the bidder whose bid produces the lowest true interest cost determined in the following manner: the lowest true interest cost will be the single interest rate (compounded on September 1, 2003 and semi annually thereafter) necessary to discount the debt service payments from their respective payment dates to May 1, 2003, in an amount equal to the bid price, excluding accrued interest.
TAX MATTERS: In the opinion of bond counsel, assuming compliance with certain covenants, interest on the bonds is excluded from gross income for federal income tax purposes as described in the opinion, and the bonds and interest thereon are exempt from all taxation in the State of Michigan except inheritance taxes and taxes on gains realized from the sale, payment or other disposition thereof. The successful bidder will be required to furnish, prior to the delivery of the bonds, a certificate in a form acceptable to bond counsel as to the “issue price” of the bonds within the meaning of Section 1273 of the Internal Revenue Code of 1986.
QUALIFIED TAX EXEMPT OBLIGATION: The Issuer will designate the bonds as a “qualified tax exempt obligation” for purposes of deduction of interest by financial institutions.
LEGAL OPINION:
Bids shall be conditioned upon the unqualified approving opinion of
Miller, Canfield, Paddock and Stone, P.L.C., attorneys of
DELIVERY OF BONDS: The Issuer will furnish bonds ready for execution at its expense. Bonds will be delivered without expense to the purchaser at a place to be agreed upon. The usual closing documents, including a certificate that no litigation is pending affecting the issuance of the bonds, will be delivered at the time of delivery of the bonds. If the bonds are not tendered for delivery by twelve o’clock noon, Eastern Daylight Savings Time, on the 45th day following the date of sale, or the first business day thereafter if said 45th day is not a business day, the successful bidder may on that day, or any time thereafter until delivery of the bonds, withdraw its proposal by serving notice of cancellation, in writing, on the undersigned in which event the Issuer shall promptly return the good faith deposit. Payment for the bonds shall be made in Federal Reserve Funds. Accrued interest to the date of delivery of the bonds shall be paid by the purchaser at the time of delivery. Unless the purchaser furnishes the transfer agent with a list giving the denominations and names in which it wishes to have the certificates issued at least 5 business days prior to the delivery of the bonds, the bonds will be delivered in the form of a single certificate for each maturity registered in the name of the purchaser.
CUSIP NUMBERS: It is anticipated that CUSIP identification numbers will be printed on the bonds, but neither the failure to print such numbers on any bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the bonds in accordance with terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the bonds shall be paid for by the Issuer; provided, however, that the CUSIP Service Bureau charge for the assignment of such numbers shall be the responsibility of and shall be paid for by the purchaser.
FINANCIAL CONSULTANT: Further information concerning the bonds may be secured from Bendzinski & Co. 607 Shelby, Suite 600, Detroit, Michigan 48226-3282, FAX: (313) 961-8220, TELEPHONE NO.: 313-961-8222 financial consultant to the Issuer.
OFFICIAL STATEMENTS: A copy of the Official Statement relating to the Bonds may be obtained by contacting Bendzinski & Co. at the address referred to above. The Official Statement is in a form deemed final by the Issuer for purposes of paragraph (b)(1) of SEC Rule 15c2-12 (the “Rule”), but is subject to revision, amendment and completion in a final Official Statement.
After the award of the bonds, the Issuer will provide on a timely basis a reasonable number of copies of the final Official Statement, as that term is defined in paragraph (e)(3) of the rule, at the expense of the Issuer (and such additional copies of the final Official Statement as reasonably requested by, and at the expense of, the successful bidder or bidders) to enable the successful bidders or bidders to comply with paragraph (b)(4) of the Rule and the rules of the Municipal Securities Rulemaking Board. Requests for such additional copies of the final Official Statement shall be made to Bendzinski & Co. at the above address within 24 hours of the award of the bonds.
CONTINUING DISCLOSURE: As described more fully in the Official Statement, the Issuer will agree to provide or cause to be provided, in accordance with the requirements of Rule 15c2-12 (the “Rule”) promulgated by the Securities and Exchange Commission, (i) on or prior to the last day of the sixth month after the end of the fiscal year of the Issuer, commencing with the fiscal year ended June 30, 2003, certain annual financial information and operating data, including audited financial statements for the preceding fiscal year, (or if audited financial statements are not available, unaudited financial statements) generally consistent with the information contained or cross-referenced in the Official Statement relating to the Bonds, (ii) timely notice of the occurrence of certain material events with respect to the Bonds and (iii) timely notice of a failure by the Issuer to provide the required annual financial information on or before the date specified in (i) above.
THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS.
ENVELOPES containing the bids should be plainly marked “Proposal for General Obligation Bonds.”
Beverly Kelley
City Clerk
8. The estimated period of usefulness of the proposed improvements are hereby declared to be not less than thirty (30) years and the cost of the Project cost is estimated to be not less than Four Million Nine Hundred Twenty Five Thousand Dollars ($4,925,000).
9. The Issuer shall not invest, reinvest or accumulate any moneys deemed to be proceeds of the bonds pursuant to Sections 103(a) and 148 of the Internal Revenue Code of 1986, as amended, and the applicable regulations thereunder, in such a manner as to cause the bonds to be “arbitrage bonds” within the meaning of said Sections 103(a) and 148 and the applicable regulations thereunder.
10. The City covenants it shall comply with the requirements of Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) regarding continuing disclosure. The City Finance Director be and is hereby designated as the City’s disclosure representative pursuant to the Rule and is directed to provide both the continuing disclosure undertaking and annual disclosure required by the Rule.
11. The Bonds are designated as “qualified tax exempt obligations” for the purpose of deduction of interest expense by financial institutions.
12. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.
AYES: Members ______________________________________________________
______________________________________________________________
NAYS: Members ______________________________________________________
RESOLUTION
DECLARED ADOPTED.
MOTION by Tertzag
SUPPORTED by Bowdell
Resolved, that approval be given to the Allen Park Downtown Development Authority to utilize the municipal parking lot located on Southfield Road, between Roosevelt and Allen Road for two special events 1) Classic Car Show on 6/25/03 and 2) Fall Festival on 9/28/03, added costs incurred to the City of Allen Park will be paid by the DDA.
MOTION ADOPTED
MOTION by Bowdell
SUPPORTED by Rossman
Resolved, that approval is given for the purchase of three (3) patrol cars for the Police Department, purchase will be through the Oakland County Co-op Bid and funds will be derived from acct. 265-000-985.
MOTION ADOPTED
MOTION by Burtka
SUPPORTED by Bowdell
Resolved, approval be given for an upgrade to the AS/400 computer in the Police Department at a cost of $5,900 (acct.#101-305-984) this is a sole source provider.
MOTION ADOPTED
MOTION by Babbage
SUPPORTED by Bowdell
Resolved, to set a Public
Hearing on March 11, 2003 for a variance request at
MOTION ADOPTED
MOTION by Tertzag
SUPPORTED by Rossman
Resolved, for the City Administrator to proceed with the Michigan Energy Audit.
MOTION ADOPTED
MOTION by Tertzag
SUPPORTED by Bowdell
Resolved, to adjourn the meeting
at
MOTION ADOPTED
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