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City
of Allen Park
Council
Minutes of September 23, 2003
Mayor King called the
meeting to order at 7:30 p.m. Roll
Call showed present Councilpersons Babbage, Bowdell, Burtka, Rossman, Tertzag,
Tucci and Mayor King. Also present
was City Attorney Kruse.
MOTION
by Tucci
SUPPORTED
by Bowdell
Resolved,
that the Agenda for September 23, 2003 be approved as amended.
MOTION
ADOPTED
MOTION
by Rossman
SUPPORTED
by Bowdell
Resolved,
that the Minutes of September 8, 2003 be approved as presented.
MOTION
ADOPTED
MOTION
by Babbage
SUPPORTED
by Rossman
Resolved,
that Claims and Accounts in the amount of $1,345,193.49 be approved for payment.
MOTION
ADOPTED
Mayor
King, on behalf of the Common Council presented a proclamation to St. Cyril’s
Catholic Church recognizing their 50th Anniversary.
MOTION
by Babbage
SUPPORTED
by Bowdell
Resolved,
to approve the request for a sign at Pelham and Pinecrest to recognize the 50th
Anniversary.
MOTION
ADOPTED
Councilman
Bowdell departed the meeting at 7:38 p.m.
MOTION
by Tucci
SUPPORTED
by Burtka
Resolved,
to place the 50th Anniversary of St, Cyril’s Catholic Church on the
City Hall marquee.
MOTION
ADOPTED
MOTION
by Burtka
SUPPORTED
by Babbage
Whereas,
DTE has talked about raining rates by approximately $.25 per month due to costs
associated with the power outage of August 2003; and
Whereas,
DTE has recently begun sending out both the gas and electric bill together in
one envelope to many of their customers thus saving DTE millions of dollars per
year in postage, printing, paper and envelopes; and
Whereas,
DTE has chosen not to pass along this savings to their customers but are instead
talking about the $.25 increase; and
Whereas,
DTE finds $.25 important enough to want to get it from us, the consumers.
Be
It Therefore Resolved, that the Allen Park City Council hereby opposes this rate
hike that is being proposed by DTE,
Be
It Further Resolved, that the Allen Park City Council calls upon DTE to cut our
bills by the amount of the savings they have realized by consolidating their
mailings to customers,
Be
It Further Resolved, that the Allen Park City Council request that the City
Clerk forward a copy of this resolution to our surrounding communities, the DCC,
the Michigan Public Service Commission and DTE.
MOTION
ADOPTED
MOTION
by Burtka
SUPPORTED
by Babbage
Resolved,
to accept and file the report from the Council Legal Affairs Committee.
MOTION
ADOPTED
MOTION
by Babbage
SUPPORTED
by Tucci
Resolved,
to approve the request for a Block Party on Keppen.
MOTION
ADOPTED
MOTION
by Babbage
SUPPORTED
by Rossman
Resolved,
to accept, with regret, the resignation of Anthony Seguna from the Planning and
Zoning Commission.
MOTION
ADOPTED
MOTION
by Burtka
SUPPORTED
by Rossman
Resolved,
to approve the Parade Permit application from Mark Bailey for the Allen Park
Elks Pumpkin Patch.
MOTION
ADOPTED
MOTION
by Tucci
SUPPORTED
by Rossman
Resolved,
to adjourn to Zoning Board of Appeals
MOTION
ADOPTED
Councilman
Tertzag arrived at 8:10 p.m.
MOTION
by Burtka
SUPPORTED
by Rossman
Resolved,
that the variance request for 8630 Carter be approved.
MOTION
ADOPTED UNANIMOUSLY
MOTION
by Babbage
SUPPORTED
by Rossman
Resolved,
that the variance request for 8939 Allen Road be approved.
MOTION
ADOPTED UNANIMOUSLY
MOTION
by Tertzag
SUPPORTED
by Babbage
Resolved
that the variance request for 16128 Regina be approved.
MOTION
ADOPTED UNANIMOUSLY
MOTION
by Babbage
SUPPORTED
by Oceana
Resolved
that the variance request for 14832 Oceana be approved with special conditions.
MOTION
ADOPTED UNANIMOUSLY
MOTION
by Tucci
SUPPORTED
by Burtka
Resolved,
that the variance request for 15411 Southfield be approved.
MOTION
ADOPTED UNANIMOUSLY
MOTION
by Tertzag
SUPPORTED
by Rossman
Resolved,
to reconvene as City Council.
MOTION
ADOPTED
Mr.
Curtis McGuire Jr. asked questions of the Council regarding several issues.
MOTION
by Tucci
SUPPORTED
by Burtka
Resolved,
to approve, during the month of October, the sale of “Buck-a-Year Booster
sponsored by the Allen Park High School Music Association.
MOTION
ADOPTED
MOTION
by Babbage
SUPPORTED
by Tertzag
Resolved,
to approve Payment #4 of the Community Center to McCarthy & Smith in the
amount of $372,337.69.
MOTION
ADOPTED
MOTION
by Babbage
SUPPORTED
by Rossman
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 ($6,500,000) and issue its
Unlimited Tax Bonds therefor payable in not to exceed thirty (30) annual
installments for the purpose of paying part of the costs of acquiring,
constructing, furnishing and equipping improvements and an addition to the Frank
J. Lada Civic Arena together with parking facilities and all attachments and
appurtenances related thereto? The
estimated mills to be levied in the year 2003 to pay the bonds is .238 mills
($.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 that a second series of
unlimited tax general obligation bonds in the principal amount of One Million
Five Hundred Seventy Five Thousand Dollars ($1,575,000) 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 2003B (the
“Bonds”) are authorized to be issued in the aggregate principal sum of One
Million Five Hundred Seventy Five Thousand Dollars ($1,575,000) 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 November 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 therefor 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 has
previously opened a separate depositary account 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 therefor may be taken against such annual levy for the Debt
Retirement Fund.
5. The Treasurer has
previously opened a separate depositary account designated
2003 GENERAL OBLIGATION BONDS CONSTRUCTION FUND (the “Construction
Fund”) and is hereby directed to 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:
UNITED
STATES OF AMERICA
STATE
OF MICHIGAN
COUNTY
OF WAYNE
CITY OF ALLEN PARK
GENERAL
OBLIGATION UNLIMITED TAX BONDS
SERIES
2003B
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 March 1, 2004 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 $1,575,000, 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
2005 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 ½ 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 therefor 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 ALLEN PARK
County
of Wayne
CERTIFICATE
OF AUTHENTICATION
This bond is one of the bonds described in
the within-mentioned resolution.
7. The City Manager 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:
$1,575,000
CITY OF ALLEN PARK
County of Wayne, State of
Michigan
GENERAL
OBLIGATION UNLIMITED TAX BONDS
SERIES
2003B
SEALED
BIDS for the purchase of the above
bonds will be received on Tuesday, the __ day of ____, 2003, until 11:30 o’clock
p.m., Eastern __________Time, at which time and place said bids will be publicly
opened and read. Sealed bids will be
received at the offices of the City Clerk located at 16850 Southfield Road,
Allen Park, Michigan 48101 and at the offices of Bendzinski & Co. 607
Shelby, Suite 600, Detroit, Michigan 48226-3282.
The City Council will meet at 7:30 o’clock p.m., on that date at
the above address to consider the award or rejection of bids.
Faxed bids may be submitted to the City at (313) 382-7946 attention: City
Clerk and to Bendzinski & Co. at (313) 961-8220. Provided, however, that
faxed bids must arrive before the time of sale and the bidder bears all risks of
transmission failure and the GOOD FAITH DEPOSIT MUST BE MADE AND RECEIVED as
described in the section designated “GOOD FAITH” below.
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, 40 West 23rd
Street, New York, New York 10010, (212) 404-8102.
NO ELECTRONIC BID WILL BE ACCEPTED UNLESS THE BIDDER HAS SUBMITTED A
FINANCIAL SURETY BOND OR A CERTIFIED OR CASHIERS CHECK IN THE AMOUNT DESCRIBED
IN THE SECTION CAPTIONED “GOOD FAITH” BELOW.
IF ANY PROVISIONS OF THIS NOTICE OF SALE SHALL CONFLICT WITH INFORMATION
PROVIDED BY BIDCOMP/PARITY, AS THE APPROVED PROVIDER OF ELECTRONIC BIDDING
SERVICES, THIS NOTICE OF SALE SHALL CONTROL.
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 November 1, 2003, numbered in order of
registration, and will bear interest from their date payable on March 1,
2004, and semiannually thereafter.
The bonds will mature on the 1st day of
September of each of the years, as follows:
|
$
25,000 |
|
2005
through 2013 |
|
50,000 |
|
2014
through 2029 |
|
75,000 |
|
2030
through 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”), New York,
New York. DTC will act as securities
depository for the bonds. Purchase
of the bonds will be made in book-entry-only form, in the denomination of $5,000
or any multiple thereof. Purchasers
will not receive certificates representing their interest in bonds purchased.
The book-entry-only system is described further in the preliminary
Official Statement for the bonds.
PRIOR
REDEMPTION:
Bonds of this issue maturing in the years 2005 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 ½ 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 $15,750, 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 Michigan and such Bond must be
submitted to the Issuer’s financial advisor at least one hour prior to the
opening of the bids. The Financial
Surety Bond must identify each bidder whose good faith deposit is guaranteed by
such Financial Surety Bond. If the
bonds are awarded to a bidder utilizing a Financial Surety Bond, then the
purchaser is required to submit its good faith deposit to the Issuer in the form
of a cashier’s check (or wire transfer such amount as instructed by the Issuer
or its financial advisor) not later than Twelve o’clock, Noon, prevailing
Eastern Time, on the next business day following the award.
If such good faith deposit is not received by that time, the Financial
Surety Bond may be drawn by the Issuer to satisfy the good faith deposit
requirement. The good faith deposit
will be applied to the purchase price of the bonds.
In the event the purchaser of the bonds fails to hour its accepted bid,
the good faith deposit will be retained by the Issuer.
No interest shall be allowed on the good faith checks, and checks of the
unsuccessful bidders will be promptly returned to each bidder’s representative
or by registered mail. The good
faith check of the successful bidder may be immediately cashed, in which event
payment for the balance of the purchase price of the bonds shall be made at the
closing.
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 March 1, 2004 and semi
annually thereafter) necessary to discount the debt service payments from their
respective payment dates to November 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 Detroit, Michigan, a
copy of which opinion will be printed on the reverse side of each bond and the
original of which will be furnished without expense to the purchaser of the
bonds at the delivery thereof. The
fees of Miller, Canfield, Paddock and Stone, P.L.C. for services rendered in
connection with such approving opinion are expected to be paid from bond
proceeds. Except to the extent
necessary to issue its unqualified approving opinion as to validity of the above
bonds, Miller, Canfield, Paddock and Stone, P.L.C. has not been requested to
examine or review and has not examined or reviewed any financial documents,
statements or materials that have been or may be furnished in connection with
the authorization, issuance or marketing of the bonds, and accordingly will not
express any opinion with respect to the accuracy or completeness of any such
financial documents, statements or materials.
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 __________ 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.”
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 One Million Five Hundred Seventy Five Thousand Dollars ($1,575,000).
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 Manager 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.
MOTION ADOPTED
MOTION
by Rossman
SUPPORTED
by Babbage
Resolved,
to approve the sale or disposal of old computer equipment.
MOTION
ADOPTED
City
Administrator Welch informed the Council of an agreement with the Allen Park
Schools in regard to the In-Line Hockey Rink at Champaign Park.
MOTION
by Babbage
SUPPORTED
by Rossman
Resolved,
that the city improve the property for the new In-Line Hockey rink at Champaign
Park.
MOTION
ADOPTED
MOTION
by Babbage
SUPPORTED
by Tucci
Resolved,
that D/Sgt. Larry Jones is authorized to attend the Advanced Detective School
from September 29 – October 2, 2003.
MOTION
ADOPTED
MOTION
by Tucci
SUPPORTED
by Burtka
Resolved,
that the Police Department be authorized to auction impounded vehicles and city
owned vehicles on Thursday, October 23, 2003.
MOTION
ADOPTED
MOTION
by Babbage
SUPPORTED
by Tucci
Resolved,
to approve the Public Hearing for Local Law Enforcement Block Grant for purchase
of bullet resistant vests, and to publish such notice.
MOTION
ADOPTED
MOTION
by Tucci
SUPPORTED
by Rossman
Resolved,
that the Fire Department be allowed to purchase replacement bottles for air
packs, this item is a sole source item.
MOTION
ADOPTED
MOTION
by Rossman
SUPPORTED
by Babbage
Resolved,
that the Council concur with the City Engineer and approve the abandonment of
the Fairlane Green and Tyre Drains.
MOTION
ADOPTED
MOTION
by Babbage
SUPPORTED
by Rossman
Resolved,
that the Council approve additional funding for the maintenance of the Ecorse
Creek.
MOTION
ADOPTED
MOTION
by Burtka
SUPP0RTED
by Tucci
Resolved,
that approval be given for four (4) Water/Sewer Department employees to attend
GIS training, funds to be derived from budget account #592-601-665.
MOTION
ADOPTED
Mark
Gahry, DPS Director updated the Council on the ash tree removal.
MOTION
by Babbage
SUPPORTED
by Rossman
Resolved,
that Tony Nicholas, Building Maintenance Supervisor, be approved to solicit bids
for on transformer and primary switchgear lineup cabinet for City Hall.
MOTION
ADOPTED
MOTION
by Babbage
SUPPORTED
by Tucci
Resolved,
that a Public Hearing be held on October 28, 2003 for variance requests at:
1.
5950 Buckingham
2.
8642 Becker
3.
9880 Manor
MOTION
ADOPTED
MOTION
by Tertzag
SUPPORTED
by Tucci
Resolved,
that a Public Hearing be held on October 28, 2003 for a vacation of an alley
between Cleophus and Philomene.
MOTION
ADOPTED
MOTION
by Tertzag
SUPPORTED
by Tucci
Resolved,
that the meting be adjourned at 10:06 p.m.
MOTION
ADOPTED
_________________________________
______________________________
Levon
G. King, Mayor
Beverly J. Kelley, Clerk