December 6, 1999

 

A regular meeting of the City Council was held on Monday, December 6, 1999, at 7:00 p.m. in the Council Chambers of City Hall.  Mayor Black presided.  The Pledge of Allegiance to the Flag was recited in unison.

 

Councilmen present:   Drummond Black, John Coppage, Hollis McKeag, John Moolenaar, Marty Wazbinski

Councilmen absent:    None

 

Minutes

Approval of the minutes of the November 22, 1999 regular meeting was offered by Councilman Coppage and seconded by Councilman Moolenaar.  (Motion adopted.)

 

Recognition of John Tysse

Selina Tisdale, Community Relations Coordinator, introduced former Councilman John W. Tysse.  The following resolution was then offered by Councilman Wazbinski and seconded by Councilman Moolenaar:

 

RESOLVED, that the Mayor is authorized to issue the attached proclamation recognizing former Third Ward Councilman John W. Tysse for his contributions to Midland City Council and to the Midland community.  (Motion adopted.)

 

Mayor Black presented the proclamation to former Councilman Tysse.

 

Sanitary Sewer Survey – Report of Finds

Dr. Jim Hill and Mary Senter, from the Center for Applied Research and Rural Studies (C.A.R.R.S.) contracted with the City of Midland to conduct a telephone interview study of City of Midland residents to learn more about residents’ views about the various sewer proposals that have been developed since the occurrence of flooding in 1996.  Mary Senter presented the results from the telephone interviews for receipt and filing in the City Clerk’s Office and at the Grace A. Dow Memorial Library.  Harry Rolka, 1116 Glendale and James Pollack, 1420 Whitehall, spoke regarding proposed ballots on the sanitary and storm sewer issues.  The following resolution was then offered by Councilman Wazbinski and seconded by Councilman Coppage:

 

RESOLVED, that the Report of Findings --- Midland Residents’ Views of Sewer Proposals is hereby received and ordered filed in the office of the City Clerk and at the Grace A. Dow Memorial Library.  (Motion adopted.)

 

Mayor Black stated a special council meeting would be held on December 13, 1999, at 7:00 p.m. to discuss ballot wording language for a Sanitary Sewer Proposal to be placed on the February 22, 2000 Presidential Primary Election.

 

Zoning Petition No. 450

James Schroeder, Director of Planning and Community Development, presented information regarding Zoning Petition No. 450 – rezoning property on the west side of Waldo Avenue south of Bay City Road from Residential A-4 to Business B-2.  A public hearing was opened at 8:05 p.m.  John Rapanos, 1012 W. Sugnet, on behalf of petitioner and owner Judith Rapanos, urged Council to approve the zoning request.  June Ayres, 3212 Bay City Road and Michael Misze, 419 Waldo Avenue, spoke in opposition to the request.  The hearing closed at 8:15 p.m.  The following ordinance amendment was offered by Councilman Wazbinski and seconded by Councilman Moolenaar:

 

 

ORDINANCE NO. ______

AN ORDINANCE TO AMEND ORDINANCE NO. 727, BEING AN ORDINANCE TO REGULATE AND RESTRICT THE LOCATION OF TRADES AND INDUSTRIES AND THE LOCATION OF BUILDINGS DESIGNED FOR SPECIFIC USES, TO REGULATE AND LIMIT THE HEIGHT AND BULK OF BUILDINGS HEREAFTER ERECTED OR ALTERED, TO REGULATE AND DETERMINE THE AREA OF YARDS, COURTS, AND OTHER OPEN SPACES SURROUNDING BUILDINGS, TO REGULATE AND LIMIT THE DENSITY OF POPULATION, AND FOR SAID PURPOSES, TO DIVIDE THE CITY INTO DISTRICTS AND PRESCRIBE PENALTIES FOR THE VIOLATION OF ITS PROVISIONS BY AMENDING THE ZONING MAP TO PROVIDE A BUSINESS B-2 ZONING CLASSIFICATION WHERE RESIDENTIAL A-4 ZONING PRESENTLY EXISTS.

The City of Midland Ordains:

Section 1.  That the Zoning Map of Ordinance No. 727, being the Zoning Ordinance of the City of Midland, is hereby amended as follows:

That property described as:  Commencing at the Northeast corner of the Northeast Quarter of the Southeast Quarter of Section 23, T14N, R2E, City of Midland, Midland County, Michigan, and running thence South on the East line of said Section 14 rods to the Place of Beginning; thence running West and at right angles with the said Section line 140 feet; thence South and parallel with said East Section line 99 feet; thence East and at right angles with the last line 140 feet to the East Section line; thence North on said East Section line 99 feet to the Place of Beginning,

     be, and the same is hereby changed to a Business B-2 District; and

Section 2.  All Ordinances or parts of Ordinances in conflict herewith are hereby repealed only to the extent necessary to give this Ordinance full force and effect.

Section 3.  This Ordinance shall take effect upon publication.  (Ordinance denied.  Yeas:  Moolenaar    Nays:  Black, Coppage, McKeag, Wazbinski)

 

Issuance & Sale of Revenue Refunding Bonds

Robert Fisher, Director of Fiscal Services, presented material on the sale of Water Supply System Refunding Revenue Bonds.  The following ordinance which provides for the sale of Water Supply System Refunding Revenue Bonds, Series 2000, to Refinance Water Supply System Revenue Bonds, Series 1991 was then offered by Councilman Wazbinski and seconded by Councilman McKeag:

 

ORDINANCE NO. 1462

AN ORDINANCE TO PROVIDE FOR THE ISSUANCE AND SALE OF REVENUE REFUNDING BONDS TO PAY THE COST OF REFUNDING THE CITY’S WATER SUPPLY SYSTEM REVENUE BONDS, SERIES 1991; TO PRESCRIBE THE FORM OF THE BONDS; TO PROVIDE FOR THE COLLECTION OF REVENUES FROM THE SYSTEM SUFFICIENT FOR THE PURPOSE OF PAYING THE COSTS OF OPERATION AND MAINTENANCE OF THE SYSTEM AND TO PAY THE PRINCIPAL OF AND INTEREST ON THE REVENUE BONDS; TO PROVIDE AN ADEQUATE RESERVE FUND FOR THE REFUNDING BONDS; TO PROVIDE FOR THE SEGREGATION AND DISTRIBUTION OF THE REVENUES; TO PROVIDE FOR THE RIGHTS OF THE HOLDERS OF THE REVENUE BONDS IN ENFORCEMENT THEREOF; AND TO PROVIDE FOR OTHER MATTERS RELATING TO THE SYSTEM AND THE REVENUE BONDS.

THE CITY OF MIDLAND ORDAINS:

         Section 1.  Definitions.  Whenever used in this Ordinance, except when otherwise indicated by the context, the following terms shall have the following meanings:

(a)          “Act 94” means Act 94, Public Acts of Michigan, 1933, as amended.

(b)          “Bonds” mean the Series 2000 Bonds, and any additional Bonds of equal standing hereafter issued.

(c)          “Closing Date” means the date the Series 2000 Bonds are delivered to the purchasers thereof.

(d)          “Issuer” or “City” means the City of Midland, Counties of Bay and Midland, State of Michigan.

(e)          “Mandatory Redemption Requirements” means the mandatory prior redemption requirements for Bonds that are term Bonds, if any, as specified in relating to this Ordinance or in any subsequent Ordinance in connection with the issuance of additional bonds.

(f)           “Refunded Bonds” means  the Water Supply System Revenue Refunding, Series 1991 Bonds maturing in the years 2000 to 2010, inclusive, aggregating the principal amount of Thirteen Million Nine Hundred Thirty-Five Thousand Dollars ($13,935,000).

(g)          “Revenues” and “Net Revenues” mean the revenues and net revenues of the System and shall be construed as defined in Section 3 of Act 94, including with respect to “Revenues”, the earnings derived from the investment of moneys in the various funds and accounts established by this Ordinance.

(h)          “Sales Resolution” means the Sales Resolution to be adopted by the Issuer respecting the sale of the Series 2000 Bonds.

(i)            “Series 1991 Bonds” means the Issuer’s Water Supply System Revenue Refunding Bonds, Series 1991, authorized by Ordinance No. 1205 in the aggregate outstanding principal amount of Thirteen Million Nine Hundred Thirty-Five Thousand Dollars ($13,935,000), which bonds are dated as of December 15, 1990, and mature serially on April 1st of each of the years 2000 to 2010, inclusive;

(j)            “Series 2000 Bonds” means the Water Supply System Revenue Refunding Bonds, Series 2000 of the Issuer authorized by this Ordinance;

(k)           “Sufficient Government Obligations” means direct obligations of the United States of America or obligations the principal and interest on which is fully guaranteed by the United States of America, not redeemable at the option of the issuer, the principal and interest payments upon which, without reinvestment of the interest, come due at such times and in such amounts as to be fully sufficient to pay the interest as it comes due on the Bonds and the principal and redemption premium, if any, on the Bonds as it comes due whether on the stated maturity date or upon earlier redemption.  Securities representing such obligations shall be placed in trust with a bank or trust company, and if any of the Bonds are to be called for redemption prior to maturity, irrevocable instructions to call the Bonds for redemption shall be given to the paying agent.

(l)            “System” means the entire Water Supply System of the City, both inside and outside the City including all plants, works, instrumentalities and properties, and all facilities used or useful in the supply and distribution of water as the same now exists, and all enlargements, extensions, repairs and improvements thereto hereafter made.

(m)                “Transfer Agent” and/or “Escrow Agent” means the bank or trust company designated in the Sales Resolution.

         Section 2.  Necessity; Public Purpose; Estimated Cost and Life of Project.  It is hereby determined to be a necessary public purpose of the Issuer to refund the Refunded Bonds.  The estimated cost of refunding the Refunded Bonds, including contingencies, legal and financing expenses, in an amount of not to exceed Thirteen Million Dollars ($13,000,000), is hereby approved.  The City Council does hereby estimate the period of usefulness of the Project to be at least forty (40) years.

         Section 3.  Payment of Cost; Bonds Authorized.  To pay the costs associated with the refunding of the Refunded Bonds, including all legal, financial and other expenses incident thereto and incident to the issuance and sale of the Bonds, the Issuer shall borrow the sum of not to exceed Thirteen Million  Dollars ($13,000,000), as finally determined in the Sales Resolution and issue the Bonds therefor pursuant to the provisions of Act 94.  The remaining costs, if any, of refunding the Refunded Bonds shall be defrayed from System funds on hand and legally available for such use.

         Section 4.  Bond Details, Registration and Execution.  The Bonds hereby authorized shall be designated WATER SUPPLY SYSTEM REVENUE REFUNDING BONDS, SERIES 2000, shall be payable solely and only out of the Net Revenues, as set forth more fully herein, shall consist of bonds of the denomination of $5,000, or integral multiples of $5,000 not exceeding in any one year the amount maturing in that year, dated as of February 1, 2000 or such later date as shall be determined in the Sales Resolution, numbered in order of authentication, and shall mature on April 1st in the years 2001 to 2010, inclusive, as follows or such other years of maturity as shall be determined in the Sales Resolution:

2001

$1,145,000

2002

 1,280,000

2003

1,340,000

2004

1,370,000

2005

1,320,000

2006

1,290,000

2007

1,310,000

2008

1,315,000

2009

1,315,000

2010

1,315,000

         The Bonds shall bear interest at a rate or rates to be determined on public sale thereof, but in any event not exceeding 7% per annum, payable on April 1 and October 1 of each year, commencing October 1, 2000, or such later date as shall be determined in the Sales Resolution, by check or draft mailed by the Transfer Agent to the person or entity which is, as of the 15th day of the month preceding the interest payment date, the registered owner at the registered address as shown on the registration books of the Issuer maintained by the Transfer Agent.  The 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.  The principal of the Bonds shall be payable at the principal corporate trust office of the Transfer Agent.  The Bonds shall be sold at not less than 99% of their par value.

         The Bonds may be subject to redemption prior to maturity at the times and prices and in the manner finally determined by the City Council in the Sales Resolution.

         In case less than the full amount of an outstanding Bond is called for redemption, the Transfer Agent upon presentation of the Bond called in part for redemption shall register, authenticate and deliver to the registered owner a new bond in the principal amount of the portion of the original bond not called for redemption.  Notice of redemption shall be given in the manner specified in the form of the Bonds contained in Section 17 of this Ordinance.

         The Bonds shall be executed in the name of the Issuer with the facsimile signatures of the Mayor and the City Clerk and shall have a facsimile of the Issuer’s seal printed on them.  No Bond shall be valid until authenticated by an authorized signer of the Transfer Agent.  The Bonds shall be delivered to the Transfer Agent for authentication and be delivered by the Transfer Agent to the Underwriter in accordance with instructions from the City Finance Director or City Treasurer upon payment of the purchase price for the Bonds in accordance with the bid therefor when accepted.  Executed blank bonds for registration and issuance to transferees shall simultaneously, and from time to time thereafter as necessary, be delivered to the Transfer Agent for safekeeping.

         Section 5.  Registration and Transfer.  Any Bond may be transferred upon the books required to be kept pursuant to this section by the person in whose name it is registered, 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 payment by the bondholder requesting the transfer of any tax or other governmental charge required to be paid with respect to the transfer.  The Transfer Agent shall not be required (i) to issue, register the transfer of or exchange any Bond during a period beginning at the opening of business 15 days before the day of the giving of a notice of redemption of Bonds selected for redemption as described in the form of Bonds contained in Section 17 of this Ordinance and ending at the close of business on the day of that giving of notice, or (ii) to register the transfer of or exchange any Bond so selected for redemption in whole or in part, except the unredeemed portion of Bonds being redeemed in part.  The Issuer shall give the Transfer Agent notice of call for redemption at least 20 days prior to the date notice of redemption is to be given.

         The Transfer Agent shall keep or cause to be kept, at its principal office, sufficient books for the registration and transfer of the Bonds, which shall at all times be open to inspection by the Issuer; and, upon presentation for such purpose, the Transfer Agent shall, under such reasonable regulations as it may prescribe, transfer or cause to be transferred, on said books, Bonds as hereinbefore provided.

         If any Bond shall become mutilated, the Issuer, at the expense of the holder of the Bond, shall execute, and the Transfer Agent shall authenticate and deliver, a new Bond of like tenor in exchange and substitution for the mutilated Bond, upon surrender to the Transfer Agent of the mutilated Bond.  If any Bond issued under this Ordinance shall be lost, destroyed or stolen, evidence of the loss, destruction or theft may be submitted to the Transfer Agent and, if this evidence is satisfactory to both and indemnity satisfactory to the Transfer Agent shall be given, and if all requirements of any applicable law including Act 354, Public Acts of Michigan, 1972, as amended (“Act 354”), being sections 129.131 to 129.135, inclusive, of the Michigan Compiled Laws have been met, the Issuer, at the expense of the owner, shall execute, and the Transfer Agent shall thereupon authenticate and deliver, a new Bond of like tenor and bearing the statement required by Act 354, or any applicable law hereafter enacted, in lieu of and in substitution for the Bond so lost, destroyed or stolen.  If any such Bond shall have matured or shall be about to mature, instead of issuing a substitute Bond the Transfer Agent may pay the same without surrender thereof.

         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 City 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.

         Section 6.  Payment of Bonds.  The Bonds and the interest thereon shall be payable solely and only from the Net Revenues, and to secure such payment, there is hereby created a statutory lien upon the whole of the Net Revenues which shall be a first lien to continue until payment in full of the principal of and interest on all Bonds payable from the Net Revenues, or, until sufficient cash or Sufficient Government Obligations have been deposited in trust for payment in full of all Bonds of a series then outstanding, principal and interest on such Bonds to maturity, or, if called for redemption, to the date fixed for redemption together with the amount of the redemption premium, if any.  Upon deposit of cash or Sufficient Government Obligations, as provided in the previous sentence, the statutory lien shall be terminated with respect to that series of Bonds, the holders of that series shall have no further rights under this Ordinance except for payment from the deposited funds, and the Bonds of that series shall no longer be considered to be outstanding under this Ordinance.

         Section 7.  Bondholders’ Rights; Receiver.  The holder or holders of the Bonds representing in the aggregate not less than twenty percent (20%) of the entire principal amount thereof then outstanding, may, by suit, action, mandamus or other proceedings, protect and enforce the statutory lien upon the Net Revenues of the System, and may, by suit, action, mandamus or other proceedings, enforce and compel performance of all duties of the officers of the Issuer, including the fixing of sufficient rates, the collection of Revenues, the proper segregation of the Revenues of the System and the proper application thereof.  The statutory lien upon the Net Revenues, however, shall not be construed as to compel the sale of the System or any part thereof.

         If there is a default in the payment of the principal of or interest on the Bonds, any court having jurisdiction in any proper action may appoint a receiver to administer and operate the System on behalf of the Issuer and under the direction of the court, and by and with the approval of the court to perform all of the duties of the officers of the Issuer more particularly set forth herein and in Act 94.

         The holder or holders of the Bonds shall have all other rights and remedies given by Act 94 and law, for the payment and enforcement of the Bonds and the security therefor.

         Section 8.  Management; Fiscal Year.  The operation, repair and management of the System shall continue to be under the supervision and control of the Council.  The Council may employ such person or persons in such capacity or capacities as it deems advisable to carry on the efficient management and operation of the System.  The City Council may make such rules and regulations as it deems advisable and necessary to assure the efficient management and operation of the System.  The fiscal year of the System shall be the same as that of the City.

         Section 9.  Rates and Charges.  The rates and charges for service furnished by and the use of the System and the methods of collection and enforcement of the collection of the rates shall be those in effect on date even herewith, as the same may be increased from time to time.

         Section 10.  No Free Service or Use.  No free service or use of the System, or service or use of the System at less than the reasonable cost and value thereof, shall be furnished by the System to any person, firm or corporation, public or private, or to any public agency or instrumentality, including the Issuer.

         Section 11.  Fixing and Revising Rates.  The rates presently in effect in the City are estimated to be sufficient to provide for the payment of the expenses of administration and operation and such expenses for maintenance of the System as are necessary to preserve the System in good repair and working order, to provide for the payment of the principal of and interest on the Bonds as the same become due and payable, and the maintenance of the reserve therefor and to provide for all other obligations, expenditures and funds for the System required by law and this Ordinance.  The rates shall be reviewed not less than once a year and shall be fixed and revised from time to time as may be necessary to produce these amounts, and it is hereby covenanted and agreed to fix and maintain rates for services furnished by the System at all times sufficient to provide for the foregoing and in order to do so rates shall be set so that Net Revenues shall be not less than 110% of average annual debt service of the Bonds.

         Section 12.  Funds and Accounts; Flow of Funds.  Commencing on the Closing Date all funds belonging to the System shall be transferred as herein indicated and all Revenues of the System shall be set aside as collected and credited to a fund to be designated WATER SUPPLY SYSTEM RECEIVING FUND (the “Receiving Fund”).  In addition, on the Closing Date all Revenues in any accounts of the previous Water Supply System shall be transferred to the Receiving Fund and credited to the funds and accounts as provided in this section.  The Revenues credited to the Receiving Fund are pledged for the purpose of the following funds and shall be transferred or debited from the Receiving Fund periodically in the manner and at the times and in the order of priority hereinafter specified:

A.    OPERATION AND MAINTENANCE FUND:

       Out of the Revenues credited to the Receiving Fund there shall be first set aside in, or credited to, a fund designated OPERATION AND MAINTENANCE FUND (the “Operation and Maintenance Fund”), monthly a sum sufficient to provide for the payment of the next month’s expenses of administration and operation of the System and such current expenses for the maintenance thereof as may be necessary to preserve the same in good repair and working order.

       A budget, showing in detail the estimated costs of administration, operation and maintenance of the System for the next ensuing operating year, shall be prepared by the Council at least 30 days prior to the commencement of each ensuing operating year.  No payments shall be made to the Issuer from moneys credited to the Operation and Maintenance Fund except for services directly rendered to the System by the Issuer or its personnel.

B.    BOND AND INTEREST REDEMPTION FUND:

       There shall be established and maintained a separate depositary fund designated BOND AND INTEREST REDEMPTION FUND (the “Redemption Fund”), the moneys on deposit therein from time to time to be used solely for the purpose of paying the principal of, redemption premiums (if any) and interest on the Bonds.  The moneys in the Redemption Fund (including the Bond Reserve Account) shall be kept on deposit with the bank or trust company where the principal of and interest on the Bonds, or any series thereof, are payable.

       Out of the Revenues remaining in the Receiving Fund, after provision for the Operation and Maintenance Fund, there shall be set aside each month commencing on the Closing Date in the Redemption Fund a sum proportionately sufficient to provide for the payment when due of the current principal of and interest on the Bonds, less any amount in the Redemption Fund representing accrued interest on the Bonds or investment income on amounts on deposit in the Redemption Fund, (including investment income on amounts held as part of the Bond Reserve Account).  Commencing on the Closing Date, the amount set aside each month for interest on the Bonds shall be in an amount equal to that fraction derived from number of months from the Closing Date to October 1, 2000 of the total amount of interest on the Bonds next coming due.  Commencing October 1, 2000, the amount set aside each month for interest on the Bonds shall be 1/6 of the total amount of interest on the Bonds next coming due.  The amount set aside each month for principal, commencing on the Closing Date, shall be an amount equal to that fraction derived from number of months from date of issue to first principal payment date of the amount of principal next coming due by maturity and the amount set aside each month for principal payment commencing April 1, 2001, shall be 1/12 of the amount of principal next coming due by maturity.  If there is any deficiency in the amount previously set aside, that deficiency shall be added to the next succeeding monthly requirements.  The amount to be set aside for the payment of principal and interest on any date shall not exceed the amount which, when added to the money on deposit in the Redemption Fund, including investment income thereon and on the Bond Reserve Account, is necessary to pay principal and interest due on the Bonds on the next succeeding principal payment date.

       There is established a separate account in the Redemption Fund to be known as the BOND RESERVE ACCOUNT (the “Bond Reserve Account”).  There shall be deposited in the Bond Reserve Account on or before the Closing Date an amount equal to the “Reserve Amount” which shall be the lesser of (1) the maximum annual debt service due in the current or any future year, (2) 125% of the average annual debt service or (3) 10% of the principal amount of the bonds.  Interest on the Bond Reserve Account must be transferred into the Redemption Fund once the Reserve Amount has been reached.

       Except as otherwise provided in this Section, the moneys credited to the Bond Reserve Account shall be used solely for the payment of the principal of, redemption premiums (if any) and interest on the Bonds as to which there would otherwise be a default.  If at any time it shall be necessary to use moneys credited to the Bond Reserve Account for such payment, then the moneys so used shall be replaced from the Net Revenues first received thereafter which are not required for current principal and interest requirements until the amount on deposit equals the Reserve Amount.  If additional Bonds are issued, each Ordinance authorizing the additional Bonds shall provide for additional deposits to the Bond Reserve Account to be made from the proceeds of the additional Bonds or Issuer fund on hand and legally available for such use in an amount that will result in the Bond Reserve Account being equal to the Reserve Amount (after taking into account the additional Bonds), or such lesser amount as may be necessary to maintain the tax-exempt status of the Bonds.  If on any principal payment date the amount in the Bond Reserve Account exceeds the Reserve Amount, the excess shall be transferred to the Redemption Fund for payment of principal and interest on the Bonds due on that date.

C.    REPLACEMENT FUND:

       There shall next be established and maintained a fund, separate depositary account, designated REPLACEMENT FUND (the “Replacement Fund”), the money credited thereto to be used solely for the purpose of making repairs and replacements to the System.  Out of the Revenues and moneys of the System remaining in the Receiving Fund each month after provision has been made for the deposit of moneys in the Operation and Maintenance Fund and the Redemption Fund (including the Bond Reserve Account), there may be deposited in the Replacement Fund such additional funds as the Council may deem advisable.  If at any time it shall be necessary to use moneys in the Replacement Fund for the purpose for which the Replacement Fund was established, the moneys so used shall be replaced from any moneys in the Receiving Fund which are not required by this Ordinance to be used for the Operation and Maintenance Fund or the Redemption Fund (including the Bond Reserve Account).

D.    IMPROVEMENT FUND:

       Out of the remaining Revenues in the Receiving Fund, after meeting the requirements of the Operation and Maintenance Fund, the Redemption Fund (including the Bond Reserve Account) and the Replacement Fund, there may be next set aside in or credited to a fund to be designated IMPROVEMENT FUND (the “Improvement Fund”), which Improvement Fund may have several subaccounts therein, such sums monthly as the City may deem advisable to be used for additions, improvements, enlargements or extensions to the System, including the planning thereof.

E.    SURPLUS MONEYS:

       Thereafter, any Revenues in the Receiving Fund after satisfying all the foregoing  requirements of this Section may, at the discretion of the Issuer, be used for any of the following purposes:

               1.      Transferred to the Replacement Fund, the Improvement Fund or both.

               2.      Transferred to the Redemption Fund and used for the purchase of Bonds on the open market at not more than the fair market value thereof or used to redeem Bonds prior to maturity.

               3.      Any lawful purpose of the Issuer.

Section 13.  Priority of Funds.  In the event the moneys in the Receiving Fund are insufficient to provide for the current requirements of the Operations and Maintenance Fund or the Redemption Fund, any moneys or securities in other funds of the System, except the proceeds of sale of the Bonds, shall be credited or transferred, first, to the Operation and Maintenance Fund, and second to the Redemption Fund.

Section 14.  Bond Proceeds. 

Certain of the proceeds of the Series 2000 Bonds and, if deemed necessary or advisable by the Issuer, moneys on hand in the outstanding Bond Reserve Account, as set forth in the Sales Resolution, shall be deposited in an escrow fund or funds (the “Escrow Fund”) consisting of cash and investments in direct obligations of or obligations of the principal of and interest on which are unconditionally guaranteed by the United States of America or other obligations the principal of and interest on which are fully secured by the foregoing not redeemable at the option of the Issuer in amounts fully sufficient to pay the principal, interest and redemption premiums on all of the Refunded Bonds, which are to be refunded hereunder and shall be used only for such purposes.  The Escrow Fund shall be held by the Escrow Agent pursuant to an escrow agreement (the “Escrow Agreement”) which shall irrevocably direct the Escrow Agent to take all necessary steps to pay the principal of and interest on the Refunded Bonds when due and to call the Refunded Bonds for redemption on the first call date, as specified by the Issuer.  The amounts held in the Escrow Fund shall be such that the cash and investments and income received thereon will be sufficient without reinvestment to pay the principal, interest and redemption premiums on the Refunded Bonds when due at maturity or by call for redemption as required by the Sales Resolution.  Any proceeds in excess of the proceeds deposited in the Escrow Fund or required to pay costs of issuance shall be deposited in the Redemption Fund and used to pay interest on the Bonds on the next available interest payment date.

The City Manager and the City Finance Director are each authorized to negotiate an Escrow Agreement on behalf of the Issuer.

Section 15.  Depositary and Funds on Hand.  Moneys in the several funds and the accounts established pursuant to this Ordinance, except moneys in the Redemption Fund (including the Bond Reserve Account) and moneys derived from the proceeds of sale of the Bonds, may be kept in one or more bank accounts at a bank or banks designated by resolution of the City, and if kept in one bank account the moneys shall be allocated on the books and records of the Issuer in the manner and at the times provided in this Ordinance.

Section 16. Investments. Moneys in the funds and accounts established herein (except as provided in Section 14 hereof), may be invested by the City in United States of America obligations or in obligations the principal of and interest on which is fully guaranteed by the United States of America and any investments hereafter permitted by law, and moneys derived from the proceeds of sale of the Bonds may also be invested in certificates of deposit of any bank whose deposits are insured by the Federal Deposit Insurance Corporation.  Investment of moneys in the Redemption Fund being accumulated for payment of the next maturing principal or interest payment of the Bonds shall be limited to obligations bearing maturity dates prior to the date of the next maturing principal or interest payment on the Bonds.  Investment of moneys in the Bond Reserve Account shall be limited to obligations bearing maturity dates or subject to redemption, at the option of the holder thereof, not later than five years from the date of the investment.  In the event investments are made, any securities representing the same shall be kept on deposit with the bank or trust company having on deposit the fund or funds or account from which the purchase was made.  Profit realized or interest income earned on investment of funds in the Receiving Fund, Operation and Maintenance Fund and Improvement Fund shall be deposited in or credited to the Receiving Fund at the end of each fiscal year.  Profit realized on interest income earned on investment of moneys in the Redemption Fund including income derived from the Bond Reserve Account shall be credited as received to the Redemption Fund.

Section 17.  Bond Form.  The Bonds shall be in substantially the following form:


UNITED STATES OF AMERICA

STATE OF MICHIGAN

COUNTIES OF BAY AND MIDLAND

CITY OF MIDLAND

WATER SUPPLY SYSTEM

REVENUE REFUNDING BOND, SERIES 2000

Interest

  Rate  

Maturity

  Date  

 

Date of Original

     Issue      

 

CUSIP

 

April 1, ____

 

_________, 2000

 

REGISTERED OWNER:

PRINCIPAL AMOUNT:                                                                                                       DOLLARS

The City of Midland, Counties of Bay and Midland, State of Michigan (the “Issuer”), for value received, hereby promises to pay, solely and only out of the hereinafter described Net Revenues of the Issuer’s Water Supply System (hereinafter defined) the Principal Amount shown above in lawful money of the United States of America to the Registered Owner shown above, or registered assigns, on the Maturity Date shown above, unless prepaid prior thereto as hereinafter provided, with interest thereon from the Date of Original Issue shown above or such later date to which interest has been paid, until paid, at the Interest Rate per annum shown above, payable on October 1, 2000, and semiannually thereafter.  Principal of this bond is payable upon surrender of this bond at the principal corporate trust office of _______________________, ______________, Michigan (the “Transfer Agent”) or such other Transfer Agent as the Issuer may hereafter designate by notice mailed to the registered owner not less than 60 days prior to any interest payment date.  Interest on this bond is payable by check or draft mailed by the Transfer Agent to the person or entity who or which is, as of the 15th day of the month preceding the interest payment date, the registered owner of record, at the registered address as shown on the registration books of the Issuer kept by the Transfer Agent.  For prompt payment of principal and interest on this bond, the Issuer has irrevocably pledged the revenues of the Water Supply System of the Issuer (the “System”), including all appurtenances, extensions and improvements thereto, after provision has been made for reasonable and necessary expenses of operation, maintenance and administration (the “Net Revenues”), and a statutory first lien thereon is hereby recognized and created.

This bond is one of a series of bonds of even Date of Original Issue aggregating the principal sum of $________, issued pursuant to Ordinance No. __________ of the Issuer, duly adopted by the City Council of the Issuer (the “Ordinance”), and under and in full compliance with the Constitution and statutes of the State of Michigan, including specifically Act 94, Public Acts of Michigan, 1933, as amended, for the purpose of paying the cost of refunding certain of the Issuer’s outstanding Water Revenue Refunding Bonds, Series 1999. 

For a complete statement of the revenues from which and the conditions under which this bond is payable, a statement of the conditions under which additional bonds of equal standing as to the Net Revenues may hereafter be issued and the general covenants and provisions pursuant to which this bond is issued, reference is made to the above-described Ordinance.

Bonds of this issue are not subject to redemption prior to maturity.

This bond is a self-liquidating bond and is not a general obligation of the Issuer and does not constitute an indebtedness of the Issuer within any constitutional, charter or statutory debt limitation of the Issuer but is payable solely and only, both as to principal and interest, from the Net Revenues of the System.  The principal of and interest on this bond are secured by the statutory lien hereinbefore mentioned.

The Issuer has covenanted and agreed, and does hereby covenant and agree, to fix and maintain at all times while any bonds payable from the Net Revenues of the System shall be outstanding, such rates for service furnished by the System as shall be sufficient to provide for payment of the interest on and the principal of the bonds of this issue and any additional bonds of equal standing as and when the same shall become due and payable, and to create and maintain a bond redemption fund (including a bond reserve account) therefor, to provide for the payment of expenses of administration and operation and such expenses for maintenance of the System as are necessary to preserve the same in good repair and working order, and to provide for such other expenditures and funds for the System as are required by the Ordinance.

This bond is transferable only upon the books of the Issuer kept for that purpose at the office of the Transfer Agent by the registered owner hereof 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 Ordinance authorizing the bonds, and upon the payment of the charges, if any, therein prescribed.

It is hereby certified and recited that all acts, conditions and things required by law precedent to and in the issuance of this bond and the series of bonds of which this is one have been done and performed in regular and due time and form as required by law.

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 City of Midland, Counties of Bay and Midland, State of Michigan, by its City Council, has caused this bond to be executed with the facsimile signatures of its Mayor and its City Clerk and a facsimile of its corporate seal to be printed on this bond, all as of the Date of Original Issue.

 

CITY OF MIDLAND

Counties of Bay and Midland, State of Michigan

 

By____________________________________

Mayor

(Seal)

Countersigned:

_____________________________________

City Clerk


Certificate of Authentication

This bond is one of the bonds described in the within-mentioned Ordinances.

 

 

 

___________________________________

________________________, Michigan

Transfer Agent

By ________________________________

Authorized Signatory

Date of Registration:

 


Section 18.  Covenants.  The City covenants and agrees with the holders of the Bonds that so long as any of the Bonds remain outstanding and unpaid as to either principal or interest –

(a)   The City will maintain the System in good repair and working order and will operate the same efficiently and will faithfully and punctually perform all duties with reference to the System required by the Constitution and laws of the State of Michigan, the City’s Charter and this Ordinance.

(b)   The City will keep proper books of record and account separate from all other records and accounts of the Issuer, in which shall be made full and correct entries of all transactions relating to the System.  The City shall have an annual audit of the books of record and account of the System for the preceding operating year made each year by an independent certified public accountant, and a copy of the audit shall be mailed to the manager of each syndicate or account originally purchasing any issue of the Bonds.  The auditor shall comment on the manner in which the City is complying with the requirements of the Ordinance with respect to setting aside and investing.  The audit shall be completed and so made available not later than four (4) months after the close of each operating year.

(c)   The City will maintain and carry, for the benefit of the holders of the Bonds, insurance on all physical properties of the System and liability insurance, of the kinds and in the amounts normally carried by municipalities engaged in the operation of similar systems, including self-insurance.  All moneys received for losses under any such insurance policies shall be applied solely to the replacement and restoration of the property damaged or destroyed, and to the extent not so used, shall be used for the purpose of redeeming or purchasing Bonds.

(d)   The City will not sell, lease or dispose of the System, or any substantial part, until all of the Bonds have been paid in full, both as to principal and interest or provision made thereof as herein provided.  The City will operate the System as economically as possible, will make all repairs and replacements necessary to keep the System in good repair and working order, and will not do or suffer to be done any act which would affect the System in such a way as to have a material adverse effect on the security for the Bonds.

(e)      The City will not grant any franchise or other rights to any person, firm or corporation to operate a System that will compete with the System and the City will not operate a system that will compete with the System.

Section 19.  Additional Bonds.  Except as hereinafter provided, the City shall not issue additional Bonds of equal or prior standing with the Refunding Bonds.

The right is reserved in accordance with the provisions of Act 94, to issue additional Bonds payable from the Revenues of the System which shall be of equal standing and priority of lien on the Net Revenues of the System with the Bonds but only for the following purposes and under the following terms and conditions:

For subsequent repairs, extensions, enlargements and improvements to the System or for the purpose of refunding part of any Bonds then outstanding and paying costs of issuing such additional Bonds including deposits which may be required to be made to the Bond Reserve Account.  Bonds for such purposes shall not be issued pursuant to this subparagraph unless the Adjusted Net Revenues of the System for the last two (2) preceding twelve-month operating years or the Adjusted Net Revenues for the last preceding twelve-month operating year, if the same shall be lower than the average, shall be equal to at least one hundred twenty percent (120%) of the maximum amount of principal and interest thereafter maturing in any operating year on the then outstanding Bonds and on the additional Bonds then being issued.  If the additional Bonds are to be issued in whole or in part for refunding outstanding Bonds, the annual principal and interest requirements shall be determined by deducting from the principal and interest requirements for each operating year the annual principal and interest requirements of any Bonds to be refunded from the proceeds of the additional Bonds.  For purposes of this subparagraph the City may elect to use as the last preceding operating year any operating year ending not more than sixteen months prior to the date of delivery of the additional Bonds and as the next to the last preceding operating year, any operating year ending not more than twenty-eight months prior to the date of the delivery of the additional Bonds.  Determination by the City as to existence of conditions permitting the issuance of additional Bonds shall be conclusive.  No additional Bonds of equal standing as to the Net Revenues of the System shall be issued pursuant to the authorization contained in this subparagraph if the Issuer shall then be in default in making its required payments to the Operation and Maintenance Fund or the Redemption Fund.

For refunding a part of the outstanding Bonds and paying costs of issuing such additional Bonds including deposits which may be required to be made to the Bond Reserve Account.  No additional Bonds shall be issued pursuant to this subsection unless the maximum amount of principal and interest maturing in any operating year after giving effect to the refunding shall be less than the maximum amount of principal and interest maturing in any operating year prior to giving effect to the refunding.

Section 20.  Sale of Bonds.  The City shall receive bids for the Series 2000 Bonds in accordance with the notice of sale approved by the City Council, award sale of the Series 2000 Bonds to the successful bidder determined in accordance with Act 94 and this Ordinance, and take all further necessary steps to issue and deliver the Series 2000 Bonds. 

Section 21.  Reduction of Principal Amount.  In the event it is deemed appropriate, the par amount of bonds authorized herein may be reduced and such lesser amount and revised maturity schedule shall be as set forth in the Notice of Sale Resolution or Sales Resolution to be adopted by the City Council.

Section 22.  Tax Matters.  The Issuer shall, to the extent permitted by law, take all actions within its control necessary to maintain the exclusion of the interest on the 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 expenditures and investment of Bond proceeds and moneys deemed to be Bond proceeds.

Section 23.  Disclosure.  The City covenants it shall comply with the requirements of Rule 15c2‑12 of the Securities and Exchange Commission (“SEC”) regarding continuing disclosure as shall be more fully set forth in the Sales Resolution.

Section 24.  Severability; Paragraph Headings; and Conflict.  If any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance.  The paragraph headings in this Ordinance are furnished for convenience of reference only and shall not be considered to be part of this Ordinance.

Section 25.  Publication and Recordation.  This Ordinance shall be published in full in the Midland Daily News, a newspaper of general circulation in the City, qualified under State law to publish legal notices, promptly after its adoption, and shall be recorded in the Ordinance Book of the Issuer and such recording authenticated by the signatures of the Mayor and City Clerk.

Section 26.  Other Matters.  The Mayor, City Clerk, City Treasurer and City Finance Director are each authorized and directed to (a) file with the Michigan Department of Treasury an application for prior approval of the issuance of the Bonds together with requests for such waivers as each shall deem necessary or appropriate, (b) approve the circulation of a preliminary official statement describing the Bonds and to deem the preliminary official statement “final” for purposes of Rule 15c2-12 of the SEC; (c) solicit bids for and approve the purchase of a municipal bond insurance policy for the Bonds; and (d) do all other acts and take all other necessary procedures required to effectuate the sale, issuance and delivery of the Bonds.

Section 27.  Effective Date.  Pursuant to the provisions of Section 6 of Act 94, this Ordinance shall be approved on the date of first reading and accordingly this Ordinance shall immediately be effective upon its adoption.  (Ordinance adopted.)

 

 

 

 

 

Date for Sale of Water Supply System Refunding Revenue Bonds, Series 2000

The following resolution was offered by Councilman Moolenaar and seconded by Councilman Wazbinski:

 

WHEREAS, the City of Midland, Counties of Bay and Midland, State of Michigan (the “Issuer”), has by an Ordinance duly adopted on date even herewith, authorized the issuance and sale of not to exceed Thirteen Million Dollars ($13,000,000) principal amount of the Issuer’s Water Supply System Refunding Revenue Bonds, Series 2000 (the “Bonds”);

NOW, THEREFORE, BE IT RESOLVED THAT:

1.          The Issuer’s Clerk is hereby authorized and directed to fix the date for the sale of the Bonds.

2.          The Issuer’s Clerk shall cause a Notice of Sale of the Bonds to be published in either the Detroit Legal News, published in Detroit, Michigan, or in the Bond Buyer, published in New York, New York, at least fourteen (14) full days before the date fixed for sale.

3.          The Notice of Sale of the Bonds shall be in substantially the following form:

OFFICIAL NOTICE OF SALE

$13,000,000

CITY OF MIDLAND

COUNTIES OF BAY AND MIDLAND, STATE OF MICHIGAN

WATER SUPPLY SYSTEM REFUNDING REVENUE BONDS

Series 2000

SEALED BIDS  for the purchase of the above bonds will be received by the undersigned at the office of the City Clerk located at 333 W. Ellsworth St., Midland, Michigan 48641-1647, on __________, the ____ day of __________, 2000, until _____ o’clock p.m., Eastern Standard Time, at which time and place said bids will be publicly opened and read.  Sealed bids for the purchase of the above bonds will also be received until the same time on the same date at the Municipal Advisory Council of Michigan, 1445 First National Building, Detroit, Michigan 48226, at which time and place said bids will be simultaneously opened and read.  The City Council will meet at _____ o’clock p.m., on that date, to consider the award or rejection of bids.

BOND DETAILS:  The bonds will be issued in fully-registered form, of the denomination of $5,000 or multiples thereof not exceeding for each maturity the aggregate principal amount of that maturity, dated February 1, 2000, numbered in order of registration, and will bear interest from their date payable on October 1, 2000, and semiannually thereafter.

The bonds will mature on the 1st day of April of the years as follows:

2001

$1,145,000

2002

1,280,000

2003

1,340,000

2004

1,370,000

2005

1,320,000

2006

1,290,000

2007

1,310,000

2008

1,315,000

2009

1,315,000

2010

1,315,000

THE ISSUER RESERVES THE RIGHT AFTER BIDS ARE RECEIVED TO REDUCE THE PAR AMOUNT OF THE BONDS AND THE AMOUNT OF BONDS MATURING EACH YEAR MAY BE ADJUSTED CORRESPONDING TO THE FINAL PAR AMOUNT OF THE BONDS.

PRIOR REDEMPTION:  The Bonds of this issue are not subject to redemption prior to maturity. 

INTEREST RATE AND BIDDING DETAILS:  The bonds shall bear interest at a rate or rates not exceeding 7% 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 between the highest and lowest interest rate on the bonds shall not exceed one and one half percent (1½%) per annum.  The interest rate borne by bonds shall be equal to or greater than the interest rate borne by bonds maturing in the preceding year.  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.

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 certificate representing their interest in bonds purchased.  The book-entry-only system is described further in the preliminary official statement for the bonds.

TRANSFER AGENT AND REGISTRATION:  Principal and interest shall be payable at the principal corporate trust office of ________________________, _______________, Michigan, or such other transfer agent as the City of Midland (the “Issuer” or “City”) may thereafter designate by notice mailed to the registered owners of the bonds not less than 60 days prior to any interest payment date.  Interest shall be paid by check or draft mailed to the registered owners of the bonds as shown by the registration books of the Issuer on the 15th day of the month preceding the interest payment date.  The bonds will be transferable only upon the registration books of the Issuer kept by the transfer agent.

PURPOSE AND SECURITY:  The bonds are issued under the provisions of Act 94, Public Acts of Michigan, 1933, as amended, and Ordinance No. _____ of the Issuer, for the purpose of defraying the cost of refunding the City’s 1991 Bonds.  The Bonds are payable solely from the net revenues of the City’s Water Supply System (the “System”) and any additions thereto, and a statutory first lien on said revenues has been established by said Ordinance.  The bonds do not constitute a general obligation of the City.  The Issuer has covenanted and agreed to fix and maintain at all times while any of such bonds shall be outstanding such rates for service furnished by the System as shall be sufficient to provide for payment of the necessary expenses of operation, maintenance and administration of the System, of the principal and interest on all of said bonds when due, to create and maintain a bond reserve account therefor, and to provide for such other expenditures and funds for the System as are required by said Ordinance.

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.

ADDITIONAL BONDS:  For the terms upon which additional bonds of equal standing with the bonds of this issue as to revenues of the System may be issued reference is made to the above described Ordinances.

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 $130,000 and payable to the order of the Treasurer of the Issuer, must accompany 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 be from an insurance company licensed to issue such a bond in the State of Michigan and such Bonds must be submitted to the Issuer’s financial advisor 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 utilized a financial surety bond, then that purchaser (the “Purchaser”) is required to submit its good faith deposit to the Issuer or its financial advisor in the form of a cashier’s check (or wire transfer such amount) as instructed by the Issuer or its financial advisor in the form of a cashier’s check not later than Noon, Eastern Standard 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 fails to honor 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.  The good faith check of the successful bidder may be deposited immediately by the Issuer and payment for the balance of the purchaser 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 interest cost computed by determining, at the rate or rates specified in the bid, the total dollar value of all interest on the bonds from ____________, 2000, to their maturity and deducting therefrom any premium or adding thereto any discount.

LEGAL OPINION:  Bids shall be conditioned upon the 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 their 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 Detroit, Michigan or such other location as may be mutually acceptable to the Issuer and the purchaser.  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 the delivery of the bonds.  If the bonds are not tendered for delivery by twelve o’clock noon, Eastern Standard 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 his 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 immediately available 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 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.

TAX EXEMPTION:  In the opinion of bond counsel, the bonds will be exempt from taxation in the State of Michigan and from federal income tax subject, in both cases, to certain exceptions described in bond counsel’s opinion.

CUSIP NUMBERS:  CUSIP identification numbers will be printed on the bonds, but neither the failure to print the numbers nor any error with respect thereto shall constitute cause for refusal by the purchaser to accept delivery of the bonds.  All expenses in relation to the printing of CUSIP numbers shall be paid for by the Issuer except that the CUSIP Service Bureau charge for the assignment of numbers shall be the responsibility of and paid for by the purchaser.

OFFICIAL STATEMENT:  A copy of the Official Statement may be obtained by contacting Stauder, Barch & Associates, Inc., financial consultant to the City, 3989 Research Park Drive, Ann Arbor, Michigan 48108, telephone 734-668-6688.  The Official Statement is in a form deemed final as of its date by the City for purposes of SEC Rule 15c2-12(b)1, but is subject to revision, amendment and completion of a final Official Statement.  The successful bidder shall supply to the City, within twenty-four hours after the award of the bonds, all pricing information and any underwriter identification determined by the City to be necessary to complete the Official Statement.

The City will furnish to the successful bidder, at no cost, a reasonable number of copies of the final Official Statement within seven business days after the award of the bonds.  Additional copies will be supplied upon the bidder’s agreement to pay the cost of the City for those additional copies.

The City shall deliver, at closing, an executed certificate to the effect that as of the date of delivery the information contained in the Official Statement, including revisions, amendments and completions as necessary, relating to the City and the bonds is true and correct in all material respects, and that such Official Statement does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

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 ____________, ____, 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. 

[BOND INSURANCE AT PURCHASER’S OPTION.  If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the bidder/purchaser, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds.  Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the Issuer has requested and received a rating on the Bonds from a rating agency, the Issuer will pay the fee for the requested rating.  Any other rating agency fees shall be the responsibility of the purchaser.  FAILURE OF THE MUNICIPAL BOND INSURER TO ISSUE THE POLICY AFTER THE BONDS HAVE BEEN AWARDED TO THE PURCHASER SHALL NOT CONSTITUTE CAUSE FOR FAILURE OR REFUSAL BY THE PURCHASER TO ACCEPT DELIVERY OF THE BONDS FROM THE ISSUER.]

CERTIFICATION:  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, as amended.

FINANCIAL CONSULTANT:  Additional information may be obtained from Stauder, Barch & Associates, Inc., financial consultant to the City at the above address and telephone.

THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS.

ENVELOPES  containing the bids should be plainly marked “Proposal for Water Revenue Bonds”.

Penny Kovacevich, City Clerk

City of Midland

4.         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.)

 

Grove Street Commons – Legal Description Corrections

James Schroeder, Director of Planning and Community Development, presented information on amendments to Article XIII, Chapter 2 of the Code of Ordinances to correct the legal descriptions in ordinances adopted on July 13, 1998.  The following two ordinance amendments were then presented for consideration. 

 

Ordinance Amendment – Grove Street Commons I (first reading)

Introduction and first reading of the following ordinance amendment was offered by Councilman Coppage and seconded by Councilman Moolenaar:

 

ORDINANCE NO. __________

AN ORDINANCE TO AMEND THE CODE OF ORDINANCES OF THE CITY OF MIDLAND, MICHIGAN, BY AMENDING SECTION 2-260.4, ARTICLE XIII, CHAPTER 2 THEREOF.

The City of Midland Ordains:

Section 1.  Article XIII, Chapter 2, Section 2-260.4, Grove Street Commons I, is hereby amended to read as follows:

Sec. 2-260.4.  Grove Street Commons I.

The City acknowledges that the Affordable Housing Alliance of Midland County, a 501(c)(3) Corporation (a sponsor, as defined herein), has offered, subject to an allocation of tax credit financing from the authority under Section 42 of the Internal Revenue Code of 1986, as amended, to erect or operate and maintain a housing development identified as Grove Street Commons I, located on the following described property:

Lots 13 and 14, and the Southeast 1/2 of Lot 15 of Block 57 of Larkin’s Addition to the City of Midland, recorded in Liber A, Page 26, of Midland County records, more particularly described as part of Section 16 and part of Section 21, T14N, R2E, City of Midland, Midland County, Michigan, beginning at the East corner of Block 57 of said Larkin’s Addition to the City of Midland; thence N 46 deg 02 min 23 sec W, 150.00 feet; thence S 44 deg 00 min 00 sec W, 120.47 feet; thence S 46 deg 05 min 15 sec E, 150.00 feet; thence N 44 deg 00 min 00 sec E, 120.34 feet to the point of beginning.

Section 2.  This Ordinance shall take effect upon publication.  (Motion adopted.  Considered first reading.)

 

Ordinance Amendment – Grove Street Commons II (first reading)

Introduction and first reading of the following ordinance amendment was offered by Councilman Wazbinski and seconded by Councilman Coppage:

 

ORDINANCE NO. __________

AN ORDINANCE TO AMEND THE CODE OF ORDINANCES OF THE CITY OF MIDLAND, MICHIGAN, BY AMENDING SECTION 2-260.5, ARTICLE XIII, CHAPTER 2 THEREOF.

The City of Midland Ordains:

Section 1. Article XIII, Chapter 2, Section 2-260.5, Grove Street Commons II, is hereby amended to read as follows:

Sec. 2-260.5.  Grove Street Commons II.

The City acknowledges that the Affordable Housing Alliance of Midland County, a 501(c)(3) Corporation (a sponsor, as defined herein), has offered, subject to an allocation of tax credit financing from the authority under Section 42 of the Internal Revenue Code of 1986, as amended, to erect or operate and maintain a housing development identified as Grove Street Commons II, located on the following described property:

Lots 10, 11, 12, and the Southeast 25 feet of Lot 9, Block 57 of Larkin’s Addition to the City of Midland, recorded in Liber A, Page 26, of Midland County records, more particularly described as part of Section 16 and part of Section 21, T14N, R2E, City of Midland, Midland County, Michigan, beginning at a point which is S 44 deg 00 min 00 sec W, 120.34 feet from the East corner of Block 57 of said Larkin’s Addition to the City of Midland; thence S 44 deg 00 min 00 sec W, 120.34 feet; thence N 46 deg 08 min 09 sec W, 205.00 feet; thence N 44 deg 00 min 00 sec E, 120.51 feet; thence S 46 deg 05 min 15 sec E, 205.00 feet to the point of beginning.

Section 2.  This Ordinance shall take effect upon publication.  (Motion adopted.  Considered first reading.)

 

Storm Water Phase II Report

Noel Bush, Director of Utilities, presented information to Council regarding the Storm Water Phase II Report.  The following resolution was then offered by Councilman Moolenaar and seconded by Councilman McKeag:

 

RESOLVED, that the Storm Water Phase II report be received and filed and placed in the Office of the City Clerk.  (Motion adopted.)

 

November 1998 Ballot Language – Sanitary Sewer & Storm Water Proposals

The following resolution was offered by Councilman Coppage and seconded by Councilman Moolenaar:

 

RESOLVED, that the November 1998 ballot language concerning the city’s sanitary sewer and storm water proposals be received and filed and placed in the Office of the City Clerk.  (Motion adopted.)

 

2000-01 Budget Preparation Schedule Discussion

Robert Fisher, Director of Fiscal Services, presented the 2000-01 City of Midland Budget Preparation Schedule to Council for discussion.

 

1999 Local Officers’ Compensation Commission Determinations

Bruce Peck, Chairman of the Local Officers’ Compensation Commission (LOCC), presented the 1999 LOCC Determination to Council.  The following resolution was then offered by Councilman Moolenaar and seconded by Councilman McKeag:

 

WHEREAS, in accord with Article IX of Chapter 2 of the Code of Ordinances, the Local Officers’ Compensation Commission has duly met and approved its 1999 Local Officers’ Compensation Commission Determinations; and

WHEREAS, said determinations were officially filed by the Chairman of the Local Officers’ Compensation Commission in the Office of the City Clerk, 333 W. Ellsworth Street, Midland, Michigan on December 2, 1999; and

WHEREAS, in accord with Article IX of Chapter 2 of the Code of Ordinances the determinations made by the Local Officers’ Compensation Commission shall become effective on December 31, 1999 unless said determinations are rejected by a 4/5 vote of the City Council; now therefore

RESOLVED, that the City Clerk’s notification of the filing of 1999 Determinations of the Local Officers’ Compensation Commission of the City of Midland on December 2, 1999 is hereby acknowledged by the City Council as having been received; and

RESOLVED FURTHER, that the City Council hereby directs that an additional copy of the 1999 Determinations of the Local Officers’ Compensation Commission be filed in the Governmental Corner of the Grace A. Dow Memorial Library for public review; and

RESOLVED FURTHER, that the City Manager is hereby directed to place this item on the December 20, 1999 City Council agenda for the purpose of hearing any public comments prior to any action taken by the City Council.  (Motion adopted.)

 

Senior Housing – Amendment to Policies for Application for Residency

The following resolution was offered by Councilman Coppage and seconded by Councilman Moolenaar:

 

WHEREAS, the Housing Commission has recommended that the age requirement for the City of Midland’s two Senior Citizen housing facilities be changed to age 55 and older; and

WHEREAS, the Housing Commission has recommended a separate waiting list for people age 55-62 that will only be used in the event the existing two waiting lists are exhausted; now therefore

RESOLVED, that an amendment to the Policies for Applicants is approved in accordance with Housing Commission recommendations and staff is instructed to implement it as soon as possible.  (Motion adopted.)

 

Contracted Appraisal Services – Midland Cogeneration Venture Assessment Appeal

Mayor Black, partner in the law firm of Riecker, VanDam, Barker & Black, P.C., requested that he be allowed to abstain from voting on issues involving the Midland Cogeneration Venture (MCV) since that company is a client of his firm.  Council unanimously agreed to the abstention.  Mayor Pro Tem Wazbinski assumed the chair.  The following resolution was then offered by Councilman Coppage and seconded by Councilman Moolenaar:

 

WHEREAS, the Midland Cogeneration Venture (MCV) appealed the 1997, 1998 and 1999 assessments and taxable values of certain property it owns in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, the appraisal firm of Walsh and Associates, Inc. has been utilized in assisting the City of Midland in its defense of said appeal; and

WHEREAS, the cost of said services is expected to exceed $20,000 and therefore approval of the City Council is required under Section 2-18 of the Code of Ordinances; and

WHEREAS, said services are hereby determined to be professional services within the meaning of Section 2-19 of the Code of Ordinances and do not require sealed proposals; now therefore

RESOLVED, that payment to the appraisal firm of Walsh and Associates, Inc. for its assistance in connection with the aforementioned appeal is hereby authorized in an amount not to exceed $50,000.  (Motion adopted.  Yeas:  Coppage, McKeag, Moolenaar, Wazbinski   Nays:  None  Abstained:  Black)

 

Mayor Black returned to the chair.

 

Being no further business the meeting adjourned at 10:30 p.m.

 

 

                                                                               _____________________________________

                                                                               Penny K. Kovacevich, City Clerk