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HomeMy WebLinkAbout1989 Demolition Hearing Minutes OFFICIAL PROCEEDINGS of the DEMOLITION HEARING OFFICERS October 26, 1989 HEARING OFFICERS PRESENT: Gloria Jones and J. Paul Thompson HEARING OFFICER ABSENT: Don Hartwick BUILDING OFFICIAL PRESENT: Henry Hernandez OLD BUSINESS: None NEW BUSINESS: First Case - 2825 Newark Willie Jile, Deacon of New Jerusalem Church, spoke on behalf of the church. Mr. Hernandez explained that the assessed value of the struc- ture is $1,100, estimated cost of repairs is $2,100. Mr. Jile explained that they had been making repairs to the house and garage and did not realize that the "shed" at the back of the property was the structure that the Building Safety Division had been concerned about. He stated they could tear that down. Mr. Hernandez offered to have the Code Compliance Officer for the area stop by and discuss it with them. Mr. Thompson determined that the structure at 2825 Newark be made safe for habitation or demolished within 14 days. Second Case - 2032 Mary The Owners were not present. However, a neighbor, Shannon Pavwoski , expressed her concerns . Mr. Hernandez explained that the assessed value of the structure is $11,360, estimated cost of repairs is $12,500. This is a burned-out vacant structure. There have been problems with vagrants residing in the structure. Mrs. Jones determined that the structure at 2032 Mary be made safe for habitation or demolished within 14 days. Third Case - 917 Clyde The Owner, Shirley Roe, was present. Mr. Hernandez explained that the assessed value of the structure is $12,550, estimated cost of repairs is $13,950. Mr. Hernandez stated that the structure has been vacant for many years. There have been trash and grass violations, Demolition Hearing Officers - Minutes October 26, 1989 Page 2 and the structure is in a dilapidated condition. Mrs. Roe explained that she has replaced the basement windows several times and the only item left to replace is the hot water heater. Mrs. Roe also stated that the structure has 100 amp electrical service. Mrs. Jones asked why the structure was vacant, and for how long it had been vacant. Mrs. Roe explained that she had a tenant destroy the inside of the house approximately 6-7 years ago. She felt it would take her another 60 days to complete repairs . Mr. Thompson determined that the structure at 917 Clyde be made habit- able or demolished within 14 days. Fourth Case - 916 N. Chestnut No Owner was present. Mr. Hernandez explained that the assessed value of the structure is $10,422, estimated cost of repairs is $30,000+. Mr. Hernandez further explained that this structure had a fire on May 2, 1989, at which time it completely destroyed the inside. Mrs. Jones determined that the structure at 916 N. Chestnut be made habitable or demolished within 14 day. Meeting adjourned at 8:00 p.m. Respectfully submitted, 1 � � Henry Hernandez Acting Secretary O n 0 m n � V F- ll C 00 l' In 166 October 24, 1989 Office, Board of Water and Light Tuesday, October 24, 1989 Lansing, Michigan The Board of Commissioners met in regular session at 5:30 p.m. The meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, Hassler, Jessop, Strolle, and Williams -6 Absent: Commissioners McComb and Sebolt -2 Quorum The Secretary declared a quorum present. Electric Utility Director Roy Peffley, Secretary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's office.) Invocation and The Invocation and Pledge of Allegiance was given by Chairman Hassler. Pledge BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER EVANS Approval of That minutes of regular rescheduled session of September 26, 1989 be Minutes approved as mailed. Adopted unanimously. Public Campnts CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. Letter from Harry J. A letter was received from Mr. Harry J. Davis, 2923 Timber Drive, Lansing, Davis RE: waste disposal with comments regarding personal involvement in solving waste disposal. Received and placed on file. Letter of thanks from A letter of thanks was received from the Capital City Riverfest for the Capital City Riverfest Board of Water and Light's contribution to the success of Riverfest '89. RE: BWL Sponsorship of Electric Parade Received and placed on file. 167 October 24, 1989 Awards presented to Ms. Pam Fowler, Vice President of Riverfest and Chair of the Electric Riverfest Electric Parade Committee, was present to hand out awards to the Riverfest Electric Parade winners Parade winners. She introduced the Board of Directors of the Capital City Riverfest and thanked the Commissioners for their support in sponsoring the Riverfest Electric Parade on September 3, 1989. Representatives were present to receive the following awards: Non-Commercial Division Floats ................... 1. Lansing Police Department Community Services 2. Big Brothers/Big Sisters 3. Potter Park Zoological Society Commercial Division Floats . . ......................................... 1. Leisure Sport and Marine 2. Windsong 3. WITL Radio BWL given award for A special appreciation award was presented to the Board of Water and Light support and sponsorsUdp for the utility's support and sponsorship of the BWL Riverfest Electric of Riverfest Electric Parade. Parade 168 October 24, 1989 October 24, 1989 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ELECTRIC Res. No. 89-10-1 it is recommended that Sheet 4.03 of the Rules and Regulations for Electric Service be revised to add a new Paragraph K, Rules and Regulations adopted and made effective immediately. for Electric Service, Sheet 4.03, revised New language is in all CAPITAL LETTERS. RE: Minirrm Charges K. MINIMUM CHARGES A MINIMUM CHARGE, AS DEFINED BY THE RATE IN EFFECT, SHALL BE APPLIED TO ALL SERVICES AND BILLED TO THE CUSTOMER OF RECORD. WHERE THE CUSTOMER REQUESTS THAT A SERVICE BE DISCONTINUED, THE BOARD SHALL NORMALLY DE-ACTIVATE THE SERVICE BY REMOVING THE METER AND/OR BY DISCONNECTING THE SERVICE FROM THE BOARD'S DISTRIBUTION SYSTEM. -------------------- The existing rule has been in effect since November 26, 1986; and is being revised in order to eliminate all situations where a meter or service can be left in an idle state with no revenue to offset its cost to the Board. -------------------- ENGINEERING Res. No. 89-10-2 That the Commissioners authorize the General Manager to enter into a Consent Order with the Air Pollution Control Commission Authorization to enter of the State of Michigan for the abatement of visible particu- into a Consent Order late matter emissions from Ottawa Station. with Air Pollution Control CCMTdssion RE: The Consent Order stipulates the upgrade of the combustion opacity at Ottawa control system and installation of oil guns on boilers 3, 4 Station and 5 by April 1 , 1991 . These modifications will reduce particulate emissions and opacity during start-up, shutdown and load swings. -------------------- 169 October 24, 1989 ENGINEERING (Continued) (Res. No. 89-10-2) BWL and Michigan Department of Natural Resources staff are finalizing agreeable terms and conditions of the Consent Order to have on the agenda of the Air Control Commission's meeting of December 5, 1989. -------------------- TREASURER/CONTROLLER Res. No. 89-10-3 That the attached resolution to amend and restate the Bond Resolution adopted on September 26,1989 be adopted. (See Resolution authorizing Attachment A) amendment and restate- ment of Bond Resolution This action hereby rescinds Resolution 89-9-13. adopted 9-26-89 -------------------------------- Res. No. 89-10-4 It is recommended that the attached Award Resolution authorizing the award of $14 million Revenue Bonds to Resolution RE: Award the lowest and best bidder based on staff's recommendation of $14 Million and total interest cost be approved. (See Attachment B) Revenue Bonds -------------------------------- Respectfully submitted, ?M)d—y�� J. D. Wolfe Assistant General Manager JDW/bg Attachments ATTACHMENT A Resolution 89-10-3 At a regular meeting of the Board of Water and Light Of the City of Lansing, Ingham, Eaton and Clinton Counties, Michigan, held in the Board Room, 123 W. Ottawa Street, Lansing, Michigan, on the 24th day of October, 1989, at 5:30 p.m. PRESENT: Co,nassioners Belen Evans 1 ABSENT: Can-mssioners McComb and Sebolt The following resolution to amend and restate the by Resolution adopted on September 26, 1989, was offeredy who moved its adoption, and seconded by Commissioner Williams_, Camassioner Jessop ATTACHMENT A RESOLVED THAT THE BOND RESOLUTION ADOPTED BY THIS BOARD ON SEPTEMBER 26, 1989, BE AMENDED AND RESTATED AS FOLLOWS: AMENDED AND RESTATED BOND RESOLUTION A RESOLUTION TO AUTHORIZE AND PROVIDE FOR THE ISSUANCE OF WATER SUPPLY AND ELECTRIC UTILITY SYSTEM REVENUE BONDS TO PAY PART OF THE COST OF REMODELING, UPDATING AND EXTENDING THE LIFE OF THE WATER SUPPLY AND ELECTRIC UTILITY SYSTEM OF THE CITY OF LANSING; TO PROVIDE FOR THE RETIREMENT AND SECURITY OF THE BONDS; AND TO PROVIDE FOR OTHER MATTERS RELATIVE TO THE IMPROVEMENTS AND BONDS. Section 1. Definitions. Whenever used in this Bond Resolu- tion, except when otherwise indicated by the context, the follow- ing terms shall have the following meanings: (a) Accreted Amount" means, as of any January 1 or July 1, with respect to the Capital Appreciation Bonds, the amount set forth for such January 1 or July 1 in the form of Capital Appreciation Bond which amount represents original principal plus the amount of interest that has accrued to such date. "Accreted Amount" means, as of any date other than January 1 or July 1, the sum of (a) the Accreted Amount on the preceding January 1 or July 1 and (b) the product of (x) a fraction, the numerator of which is the number of days having elapsed from the preceding January 1 or July 1 and the denominator of which is the number of days from such preced- ing January 1 or July 1 to the next succeeding January 1 or July 1 and (y) the difference between the Accreted Amounts for such January 1 or July 1, which amount represents the principal plus the amount of interest that has accrued to the date of determination. (b) "Act 94" means Act 94, Public Acts of Michigan 1933, as amended. (c) "Additional Bonds" means any additional bonds of equal standing with the Series 1989A Bonds and the Series 1989B Bonds issued pursuant to Section 18 of this Bond Resolution. (d) "Aggregate Debt Service" for any period means, as of any date of calculation by the Board, the sum of the amounts of the debt service for such period with respect to all Outstanding Bonds. In the event that any of the Out- standing Bonds bear interest at a variable rate, such Bonds shall, for purposes of calculating Aggregate Debt Service, be -1- ATTACHMENT A assumed by the Board to bear interest at or (ii)dthe rate of interest equal to the greater of ( ' ) 10.00% te published by The Bond Buyer or any successor publication as its "Index of 25 Revenue Bonds" applicable on a date not more than 20 days prior to the date of initial issuance of any such variable interest rate Bonds. (e) "Aggregate Debt Service Requirement" means for period, and as of any date of calculation, Aggregate Service for such period, less any capitalized interest to be paid from the proceeds of the Bonds. (f) "Award Resolution" means the resolution(s) of the Board authorizing the sale of the Bonds. (g) "Board" means the Board of Water and Light estab- lished pursuant to Section 5-201 of Chapter 2 of the City Charter of the City. (h) "Bond Reserve Account" means the Bond Reserve Account established pursuant to Section 11(B) of this Bond Resolution. (i) "Bond Resolution" means this Amended and Restated Bond Resolution and any other resolution amendatory to or supplemental to this Amended and Restated Bond Resolution and shall include any resolution authorizing the sale of a series of Bonds. (j) "Bonds" means the Series 1989A Bonds, the Series 1989B Bonds and, when issued and delivered, any Additional Bonds authorized and issued in accordance with Section 18 of this Bond Resolution. (k) "Capital Appreciation Bonds" means the Series 1989B Bonds which mature on July 1, 2004 . (1) "City" means the City of Lansing, Ingham, Eaton and Clinton Counties, Michigan. (m) "Code" means the Internal Revenue Code of 1986, as amended. (n) "Consulting Engineer" means the engineer or engi- neering firm or firms appointed from time to time, and having a favorable reputation for skill and experience in the design and operation of municipal utility systems, at e tme retained by the Board to perform the acts and carry out the duties provided for such Consulting Engineer in the Bond Resolution. -2- ATTACHMENT A (o) "Current Interest Bonds" means (a) the Series 1989A Bonds and (b) the Series 1989B Bonds which mature in the years 1994 and 1999 . (p) "Depository" means First of America Bank-Central, or such other bank as shall be designated to act as deposi- tory pursuant to this Bond Resolution by resolution of the Board organized under the laws of any State of the United States of America or any national banking association having a combined capital stock and surplus of at least $50,000,000. (q) "Event of Default" means an Event of Default speci- fied in Section 19 of this Bond Resolution. (r) "Government Obligations" means direct obligations of (including obligations issued or held in book entry form on the books of) the United States of America; (s) Investment Obligations" means, to the extent authorized by law, (i) United States government obligations; (ii) obligations the principal and interest on which is fully guaranteed by the United States; (iii) repurchase agreements that are secured by United States government obligations or obligations fully guaranteed by the United States and that are held by an independent third party; (iv) certificates of deposit or other accounts of, or bankers acceptances of, 1 or more of the following: (a) banks that are members of the federal deposit insurance corporation; (b) savings and loan associations that are members of the federal savings and loan insurance corporation; (c) credit unions whose accounts are insured by the national credit union share insurance fund; (v) commercial paper that is rated in the highest category by a nationally recognized rating agency; (vi) obligations of a state of the United States or of a political subdivision of a state of the United States that are rated in 1 of the 3 high- est categories by a nationally recognized rating agency; (vii) a collective investment fund that invests solely in 1 or more of the securities described above; and (viii) Govern- ment Obligations . (t) "Junior Lien Bonds" means bonds or other obliga- tions which may be issued or incurred by the Board to provide funds for any lawful purpose of the System which are of junior standing and priority of lien with respect to the Net Revenues to the claim of the Bonds. (u) "Mandatory Redemption Requirement" refers to the requirement, if any, to redeem the Bonds prior to maturity as set forth in the Award Resolution. -3- ATTACHMENT A (v) "Municipal Obligation" means any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state (i) which are not callable at the option of the obligor prior to maturity or as to which irrevocable notice has been given by the obligor to call on the date specified in the notice, and (ii) which are fully secured as to principal and interest and redemption premium, if any, by a fund consisting only of cash or Government Obligations, which fund may be applied only to the payment of such princi- pal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as appropriate, and (iii) which fund is sufficient, as verified by an independent cer- tified public accountant, to pay principal of and interest and redemption premium, if any, on the bonds or other obliga- tions described in this definition of Municipal Obligation on the maturity date or dates thereof or on the redemption date or dates specified in the irrevocable instructions referred to in subclause (i) of this definition of Municipal Obliga- tion, as appropriate, and ( S.v) which are rated, based on the escrow, in the highest rating category of Standard & Poor's Corporation and Moody's Investors Service, Inc. or any suc- cessors thereto; (w) "Net Revenues" means the Revenues remaining after deducting the reasonable expenses of administration, opera- tion, and maintenance of the System. (x) "Operation and Maintenance Fund" means the Opera- tion and Maintenance Fund established pursuant to Section 11(A) of this Bond Resolution. (y) "Outstanding Bonds" means Bonds issued under this Bond Resolution except: (i) Bonds cancelled by the Transfer Agent at or prior to such date; (ii) Bonds (or portions of Bonds) for the payment or redemption of which moneys or Government Obligations, equal to the principal amount or redemption price thereof, as the case may be, with interest to the date of maturity or redemption date, shall be held in trust under this Bond Resolution and set aside for such pay- ment or redemption (whether at or prior to the maturity or redemption date) , provided that if such Bonds (or portions of Bonds) are to be redeemed, notice of such redemption shall have been given as provided in this -4- ATTACHMENT A Bond Resolution or provision satisfactory to the Trans- fer Agent shall have been made for the giving of such notice; (iii) Bonds in lieu of or in substitution for which other Bonds shall have been authenticated and delivered hereunder; and (iv) Bonds no longer deemed to be Outstanding Bonds as provided in Section 5 of this Bond Resolution. (z) "Project" means the remodeling, updating and extending the life of the water supply and electric utilities of the City of Lansing, including some or all of the follow- ing: (i) structural and turbine repairs and stability improvements to Moores Park Dam at the Eckert Station and structural repairs to the North Lansing Dam, (ii) the instal- lation of a new potable water service to the west end of the Eckert Station and modifications to the existing house ser- vice water system, replacement of three house service water pumps, three ash sluice pumps and six cooling tower pumps at the Eckert Station, (iii) modifications to upgrade the piping, valves, pumps and equipment for the waste water treatment system at the Eckert Station, (iv) upgrading the make-up water systems of the Eckert Station, (v) replacing the flue gas discharge breaching between the I.D. fans and the chimney at the Erickson Station, (vi) constructing a 138 kV Substation, (vii) installing a new 13.2 kV distribution cable to downtown East Lansing, (viii) adding a second trans- former and associated distribution switch gear at the exist- ing Enterprise 138 kV Substation, (ix) upgrading the valves, piping and controls of the rapid sand filters at the Dye Water Conditioning Plant, (x) restoring some of the exterior walls and installing a new facade on other portions of the exterior walls of the Dye Water Conditioning Plant, (xi) replacing existing remote monitoring and controls of the high service water pumps and facilities at the Wise Complex and providing for integrated control and monitoring capabilities at the Dye Water Conditioning Plant, (xii) upgrading the Lansing area well field remote control and indication by R. F. Telemetry and integration of the controls and indica- tion points into the computer system at the Dye Water Condi- tioning Plant, (xiii) replacing residential and commercial water meters in conjunction with the combined billing format for electric, water and steam billing and (xiv) upgrading the Eifert Booster Pumping Station by installing a second pump and new water mains and adding another booster pump pumping station to the Delhi Township Water Distribution System. (aa) "Rating Agency" means Moody's Investors Service and/or Standard and Poor's Corporation, or any successor to -5- ATTACHMENT A either thereof or similar national rating agency if the fore- going do not exist. (bb) "Rebate Fund" means the Rebate Fund established pursuant to Section 12 of this Bond Resolution. (cc) "Receiving Fund" means the Receiving Fund estab- lished pursuant to Section 11 of this Bond Resolution. (dd) "Redemption Fund" means the Bond and Interest Redemption Fund established pursuant to Section 11(B) of this Bond Resolution. (ee) "Registered Owner" means the owner of a Bond as shown by the registration records kept by the Transfer Agent. (ff) "Reserve Requirement" means the lesser of (a) the maximum Aggregate Debt Service Requirement for the then cur- rent and any subsequent operating year and (b) ten percent ( 10%) of the aggregate proceeds of all Additional Bonds plus the maximum Aggregate Debt Service Requirement on the Series 1989A Bonds and the Series 1989B Bonds for the then current and any subsequent operating year. (gg) "Revenues means the income derived from the rates charged for the services, facilities, and commodities fur- nished by the System, earnings on investment of funds and accounts of the System required to be deposited in the Receiving Fund pursuant to this Bond tResolutioniandofther revenues derived from or pledged the System. (hh) "Series 1989A Bonds" means the Water Supply And Electric Utility System Revenue Bonds, Series 1989A issued pursuant to this Bond Resolution. (ii) "Series 1989B Bonds" means the Water Supply And Electric Utility System Revenue Bonds, Series 1989B issued pursuant to this Bond Resolution. (ii) "Sufficient" means with respect to (i) cash or (ii) Government Obligations or (iii) Municipal obligations, or any of the combination thereof, not redeemable at the op tion issuer thereof, 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 or any portion thereof and the principal and redemption premium, if any, on the Bonds or any portion thereof as they come due whether on the stated maturity date or upon earlier redemption. Securi- ties representing such obligations or cash shall be placed in -6- ATTACHMENT A trust with a bank or trust company, and if any of the Bonds are to be called for redemption prior to maturity, irrevoca- ble instructions to call the Bonds for redemption shall be given to the Transfer Agent. (kk) "System" means the complete facilities of the City for the supply and distribution of water and the generation and distribution of electricity, steam and heat, including all plants, works, instrumentalities and properties, used or useful in connection with the supply and distribution of water and the generation and distribution of electricity, steam and heat and all additions, extensions and improvements thereto existing or hereafter acquired by the City. (11) "Transfer Agent" means the bank or trust company designated by the Board in the Award Resolution or any sub- sequent resolution to perform the duties of the Transfer Agent pursuant to this Bond Resolution. Section 2. Necessity. Estimate of Cost and Useful Life. It is hereby determined to be necessary for the public health, safety and welfare of the City to remodel, update and extend the life of the System by acquiring the Project. The estimated cost of the Project is $23,367,000 and the estimated useful life of the Project is not less than 30 years. Section 3. Series 1989A Bonds and Series 1989B Bonds Autho- rized. To pay a portion of the cost of acquiring the Project, including payment of legal, financial and other expenses of the issuance and sale of the Series 1989A Bonds and Series 1989B Bonds, the City, by and through its Board, shall borrow a sum as finally determined in the Award Resolution, which sum is presently estimated to be: (i) Fourteen Million Dollars ($14,000,000) , but not to exceed Sixteen Million Dollars ($16,000,000) in connection with the Series 1989A Bonds and (ii) Two Million Dollars ($2,000,000) , but not to exceed Three Million Dollars ($3, 000,000) in connection with the Series 1989B Bonds, and issue the Series 1989A Bonds and the Series 1989B Bonds therefor pursuant to the provisions of Act 94 . Section 4 . Bond Details. The bonds shall be designated "Water Supply And Electric Utility System Revenue Bonds, Series 1989A" and "Water Supply And Electric Utility System Revenue Bonds, Series 1989B, " shall be payable solely out of Net Revenues and any other monies pledged under this Bond Resolution and shall not be a general obligation of the City. Series 1989A Bonds shall be issued in denominations of $5,000 or any integral multiples thereof not exceeding the amount of the Series 1989A Bonds maturing on the same date and shall be numbered in consecu- tive order of authentication from 1 upwards. Current Interest Series 1989B Bonds shall be issued in denominations of $500 or -7- ATTACHMENT A integral multiples thereof not exceeding the amount of Series 1989B Bonds maturing on the same date and shall be numbered in consecutive order of authentication from 1 upwards. Capital Appreciation Bonds shall be issued in denominations of the origi- nal principal amount per $1,000 at maturity or any authorized integral multiple thereof, which shall appreciate to $1,000 (or the applicable multiple thereof) upon maturity, as specified in the Award Resolution, shall be lettered "A" and numbered in con- secutive order from 1 upwards . Current Interest Bonds shall be dated as of October 1, 1989, or such later date as this Board shall approve in the Award Resolution. Capital Appreciation Bonds shall be dated as of their date of delivery. Current Interest Bonds shall bear interest at a rate or rates to be determined on the sale thereof, not exceeding nine percent (9%) per annum, payable on July 1, 1990, and on each January 1 and July 1 thereafter, by check drawn on the Transfer Agent and mailed to each Registered Owner at the registered address, as shown on the registration books of the City maintained by the Transfer Agent. 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 date of determina- tion of Registered owner for purposes of payment of interest as provided in this paragraph may be changed by the Board to conform to market practice in the future. Interest on the Current Interest Bonds shall be computed on the basis of a 360-day year consisting of twelve 30-day months. The principal of the Current Interest Bonds and the amount payable at maturity on the Capital Appreciation Bonds shall be payable at the principal office of the Transfer Agent upon presentation and surrender thereof. Unless otherwise provided in the Award Resolution, the Series 1989A Bonds shall be sold at not less than 98% of their par value and the Series 1989B Bonds shall be sold at not less than 100% of their par value (original principal amount per $1,000, in the case of Capital Appreciation Bonds) . The Series 1989A Bonds shall mature on July 1 in years and estimated amounts as described in Exhibit A. The actual amount of each maturity shall be finally determined in the Award Resolution. Current Interest Series 1989B Bonds shall mature on July 1 in years and estimated amounts as described in Exhibit B. The actual amount of each maturity shall be finally determined in the Award Resolution. Capital Appreciation Bonds shall mature in the estimated amount and on the date described in Exhibit C. The actual amount of each maturity shall be finally determined in the Award Resolution. -8- ATTACHMENT A Current Interest Bonds maturing prior to July 1, 1998, are not subject to redemption at the optxion of the Board, acting for the City, prior to maturity. The Current Interest Bonds maturing on and after July 1, 1998, are subject to redemption at the option of the City at any time, in whole or in part, in such order as the Board shall determine and by lot within a maturity, in integral multiples of $5,000 in the case of Series 1989A Bonds and in integral multiples of $500 in the case of Series 1989B Bonds, at the following redemption prices (expressed as percent- ages of the principal amount of the Bonds or portion of Bonds to be redeemed) , plus accrued interest to the redemption date: Period During Which Redeemed (Both Dates Inclusive) Redemption Price July 1, 1997, to June 30, 1999 102% July 1, 1999, to June 30, 2001 101 July 1, 2001, and thereafter 100 Capital Appreciation Bonds are subject to redemption at the option of the Board acting for the City, in whole or in part by lot at any time on or after July 1, 1997, at the following redemption prices (expressed as a percentage of the Accreted Amount of Capital Appreciation Bonds to be redeemed) : Period During Which Redeemed (Both Dates Inclusive) Redemption Price July 1, 1997, to June 30, 1999 102% July 1, 1999, to June 30, 2001 101 July 1, 2001, and thereafter 100 The Transfer Agent shall give notice of the redemption of Bonds by mail not less than 30 days before the redemption date to the Registered Owners of the Bonds or portions of the Bonds to be redeemed at the addresses of the Registered Owners as shown on the registration books of the City kept by the Transfer Agent. Failure to receive any notice of redemption shall not offset the validity of the proceedings for redemption. Bonds called for redemption shall not bear interest after the redemption date if funds are on deposit with the Transfer Agent to redeem the Bonds called for redemption on the redemption date. The Bonds shall be issued in fully registered form and shall be signed by the manual or facsimile signatures of the Chairman and Secretary of the Board. The Bonds shall have the facsimile corporate seal of the City printed thereon. No Bond shall be valid until authenticated by an authorized officer of the Trans- fer Agent. The Bonds shall be delivered to the Transfer Agent for authentication and shall be delivered by the Transfer Agent to the purchaser in accordance with instructions from the -9- ATTACHMENT A Secretary of the Board upon payment of the purchase price for the Bonds in accordance with the Award Resolution. Executed blank Bonds for registration and issuance to transferees shall, as necessary, be delivered to the Transfer Agent. Any Bond, upon surrender of the Bond to the Transfer Agent by the Registered Owner thereof, accompanied by a duly executed written instrument of transfer satisfactory to the Transfer Agent, may be exchanged for a Bond or Bonds of the same series and type (Current Interest Bond or Capital Appreciation Bond, as the case may be) of any other authorized denominations of the same aggregate principal amount, maturity date and interest rate as the surrendered Bond. Any Bond may be transferred upon the books of the City main- tained by the Transfer Agent by the Registered Owner thereof, in person or by his or her duly authorized attorney, upon surrender of the Bond for cancellation, accompanied by 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 Transfer Agent shall authenticate and deliver a new Bond or Bonds, of like series, type, aggregate principal amount, maturity, and interest rate. The Transfer Agent shall require the payment by the Registered Owner requesting the transfer of any tax or other governmental charge required to be paid with respect to the transfer. The City shall not be required (i) to issue, register the transfer of, or exchange any Bond during a period beginning at the opening of 15 business days before the day of the mailing of a notice of redemption of Bonds selected for redemption under this Bond Resolution and ending at the close of business on the day of that mailing, 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 Board, on behalf of the City, shall give the Transfer Agent notice of call for redemption at least 15 days prior to the date notice of redemption is to be given. Upon payment of a fee of $15.00 and written notice received nd the Board not less than 15 days prior by the Transfer Agent a to a redemption date fixed by the Registered Owner, the Series 1989B Bonds shall be redeemed by the City, which date shall be a January 1 or July 1, at a price, in the case of Current Interest Bonds, equal to the principal amount of the Series 1989B Bonds to be redeemed and, in the case of Capital Appreciation Bonds, at a price equal to the Accreted Amount on the redemption date of Series 1989B Bonds to be redeemed. -10- ATTACHMENT A Section 5. Payment of Bonds; Defeasance. The Bonds and the interest thereon shall be payable solely from the Net Revenues, and to secure such payment, there is hereby created a statutory lien upon the whole of the Net Revenues. Pursuant to provisions of Act 94, the City, by and through its Board, hereby pledges to the repayment of principal of, redemption premium, if any, and interest on the Bonds, the funds and accounts established by this Bond Resolution, and a statutory lien is hereby created on such funds and accounts. The liens and pledge provided by this Bond Resolution shall continue until payment in full of the principal of and interest on all Bonds payable from Net Revenues, or, until Sufficient cash, Sufficient Government Obligations, Sufficient Municipal Obligations or any combination thereof shall have been deposited in trust for payment in full of the principal of and the interest on all Bonds to be paid to their maturity, or, if called or if irrevocable instructions have been given to call Bonds for redemption, to the date fixed for redemption together with the amount of the redemption premium, if any. Upon deposit of Sufficient cash, Sufficient Government Obligations, Sufficient Municipal Obligations or any combination thereof, the statutory lien created by this Bond Resolution shall be terminated with respect to the Bonds to be paid from the cash, Government Obliga- tions or Municipal Obligations, or combination thereof, the Registered Owners of such Bonds shall have no further rights under this Bond Resolution except for payment from the deposited funds and for the rights of replacement, registration and trans- fer provided by this Bond Resolution, and such Bonds shall no longer be considered to be Outstanding Bonds under this Bond Resolution. Section 6 . Management. The operation, repair and management of the System shall be under the supervision and control of the Board. Section 7 . Charaes. The rates to be charged for service furnished by the System and the methods of collection and enforcement of the collection of the rates shall be those per- mitted bylaw and established by the Board and in effect on the date of adoption of this Bond Resolution and thereafter as estab- lished by the Board. Section 8. No Free Service. No free service shall be fur- nished by the System to any person, firm or corporation public or private, or to any public agency or instrumentality. Section 9. Rate Covenant. The Board will at all times fix, establish, maintain and collect rates, fees and charges for the sale of the output, capacity, use or service of the System which, together with other income, are reasonably expected to yield Net Revenues equal to at least 120% of the Aggregate Debt Service Requirement for the forthcoming twelve ( 12) month period plus -11- ATTACHMENT A such amount as is necessary to comply with all covenants in this Bond Resolution and to pay all charges and liens whatsoever pay- able out of Net Revenues in such period. Section 10 . Operating Year. The System shall continue to be operated on the basis of an operating year commencing on July 1st and ending on the 30th day of the following June. For purposes of determining the annual Aggregate Debt Service Requirement on the Bonds for any operating year, payments of principal and interest due on July 1st shall be considered to be part of the Aggregate Debt Service Requirement for the preceding operating year. Section 11. Funds and Accounts; Flow of Funds . All Revenues of the System shall be set aside as collected and credited to a fund established with the Depository to be designated WATER SUPPLY AND ELECTRIC UTILITY SYSTEM RECEIVING FUND. The Revenues so credited are pledged for the purpose of the following funds and shall be transferred from the Receiving Fund periodically in the manner and at the times hereinafter specified: A. OPERATION AND MAINTENANCE FUND: Periodically, out of the Revenues credited to the Receiving Fund there shall be first set aside in, or credited to-, a fund designated OPERATION AND MAINTE- NANCE FUND, a sum sufficient to provide for the payment during the succeeding period of the next month's expenses of administra- tion and operation of the System, including such current expenses for the maintenance thereof as may be necessary to preserve the same in good repair and working order. B. BOND AND INTEREST REDEMPTION FUND: There shall be established and maintained a fund designated BOND AND INTEREST REDEMPTION FUND, the moneys on deposit therein from time to time to be used solely, except for required deposits to the Rebate Fund, for the purpose of paying the principal of, redemption premium, if any, and interest on the Bonds . The moneys in the Redemption Fund, including the Reserve Account, shall be kept on deposit with the bank or trust company which is the Transfer Agent. After provision for the Operation and Maintenance Fund, there shall be set aside on or before the first day of each month, commencing December 1, 1989, in the Redemption Fund a sum propor- tionately 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 . Commencing December 1, 1989, the amount set aside each month for interest on the Bonds shall be 1/7 of the interest on the Bonds due July 1, 1990, and commencing July 1, 1990, and thereafter the amount set aside each month for interest on the Bonds shall be 1/6 of the interest on the Bonds next coming due. -12- ATTACHMENT A The amount set aside each month for principal, commencing December 1, 1989, shall be 1/7 of the amount of principal due on the Bonds on July 1, 1990, and commencing July 1, 1990, and thereafter the amount set aside each month for principal of the Current Interest Bonds shall be 1/12 of the total amount of the principal of the Bonds due on the next July 1 and 1/12 of the maturing amount of Capital Appreciation Bonds due one year or less from the 1st day of such month. If there is any deficiency in the amount previously set aside, that deficiency shall be added to the requirements for the next succeeding month. There shall be established a separate account in the Redemp- tion Fund to be known as the BOND RESERVE ACCOUNT. On the date of delivery of any Additional Bonds issued pursuant to Section 18(a) or (c) of this Bond Resolution, the Board shall transfer to the Bond Reserve Account from the proceeds of the Additional Bonds or any other available source the lesser of (a) 10% of the proceeds of the Additional Bonds and (b) the maximum Aggregate Debt Service Requirement on the Additional Bonds for the then current and any subsequent operating year and commencing on the 1st day of the month following delivery of the Additional Bonds and on the 1st day of each month thereafter until the amount in the Bond Reserve Account equals the Reserve Requirement, 1/12 of the difference between the amount deposited on the delivery of the Additional Bonds and the Reserve Requirement. Except as otherwise provided in this Bond Resolution, the moneys credited to the Bond Reserve Account shall be used solely for the payment of the principal of, redemption premium, if any, and interest on 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 expenses of administration, operation and maintenance of the system or for current principal and interest requirements on any of the Bonds. The Board may satisfy the Reserve Requirement by a letter of credit, a surety bond or an insurance policy if the provider or issuer thereof shall be rated Aaa by Moody's Investors Service and AAA by Standard and Poor's Corporation. If at any time the amount in the Bond Reserve Account exceeds the Reserve Requirement, the excess may be transferred to such fund or account as the Board may direct. C. JUNIOR LIEN BOND AND INTEREST REDEMPTION FUND: If the Board shall ever issue Junior Lien Bonds, there shall be estab- lished and maintained a separable depositary fund for the purpose of paying the principal of, redemption premium, if any, and interest on such Junior Lien Bonds as they come due (the "Junior -13- ATTACHMENT A Lien Bond and Interest Redemption Fund" ) . Revenues remaining in the Receiving Fund, after provision has been made for the he the requirements of tshalopebetlset on a an asidend , tnot more ofa ce Fund an f en than Redemption F , monthly, in a fund for the Junior Lien Bonds in accordance wit the separate accounton hmayzalso be the lestablished of twithin Junior suchLien fund asBonds. a A separate junior lien basis in bond reserve account to be funded on a j accordance with the resolution authorizing the issuance of the Junior Lien Bonds. The detail f the establishment in the and mainte- nance of such fund shall be provided Board authorizing the issuance of such Junior Lien Bonds. D. SURPLUS MONEYS: Any Revenues in the Receiving Fund after satisfying all requirements of the Operation and Maintenance Fund, the Redemp- tion Fund, the Rebate Fund and the Junior Lien Bond and Interest used for suchnd shall purposesbeaseemed to the Board deemsustoobeyforntheay be best used for s purposes interests of the City. If there should be any deficit in the Operation and Mainte- nance Fund, Redemption Fund or the Rebate Fund on accohenunt unttra of defaults in setting aside required amounts therein, fens shall be made from the operating earneys matolng in thosethe fundscinvthe Fund at the end of any operating y to the extent of any priority and order specified herein, deficit, before any other disposition eis made of the monies in the Receiving Fund at the end of an operating year. Section 12 . Rebate Fund. There shall be established and maintained a fund designated the REBATE FUND. Moneys represent- ing investment earnings or profits shall be transferred annually from all funds and accounts established under this Bond Resolution and deposited in the Rebate Fund in an amount suffi- s to the cient to enable the City to rebateaccordancevestmenwithr the grequire- federal government, if necessary, in ments of the Code. Funds on deposit in the Rebate Fund are not pledged as security for the Bonds . Monies shall be deposited in o the federal government the Rebate Fund and shall be rebated t of nationally recognized unless the City has received an opinion bond counsel that failure to take s chinc actlfor federal ons will tincome stax affect the exclusion from gross me purposes of the interest on such Bonds. The City, by and through its Board, covenants and agrees that ake to the trotextent and that it by shallwnotltfailltottakeall anyaaction as ns mhin ay its control on be necessary to maintain the exclusion ofntincluding but Bonds from gross income for federal income tax purposes, not limited to, actions relating to the rebate of arbitrage -14- ATTACHMENT A earnings and the expenditure and investment of Bond proceeds and moneys deemed to be Bond proceeds, all as more fully set forth in the Non-Arbitrage and Tax Compliance Certificate to be delivered by the City in connection with the issuance of the Series 1989A Bonds and the Series 1989B Bonds . Section 13. Priority of Funds . In the event the moneys in the Receiving Fund are insufficient to provide for the current requirements of the Operation and Maintenance Fund or the Redemp- tion Fund or the Rebate Fund or the Junior Lien Bond and Interest Redemption Fund, any moneys or securities in other funds of the System, except the proceeds of sale of the Series 1989A Bonds and the Series 1989B Bonds, shall be credited or transferred, first, to the Operation and Maintenance Fund, second, to the Redemption Fund, to the extent of any deficit therein, third, to the Rebate Fund and fourth, to the Junior Lien Bond and Interest Redemption Fund. Section 14 . Investments. Moneys in the funds and account established herein, and moneys derived from the proceeds of sale of the Bonds, may be invested by the Board on behalf of the City in Investment Obligations. Investment of moneys in the Redemption Fund being accumulated for payment of the next maturing principal or interest on the Bonds shall be limited to Government Obligations bearing maturity dates prior to the date of the next maturing principal or interest payment respectively on the Bonds . Investment of moneys in any other funds or account, including moneys derived from the proceeds of sale of the Bonds, shall be limited to obligations bearing maturity dates or subject to redemption, at the option of the holder thereof, not later than the time estimated by the City when the moneys from such investments will be required. Any securities representing investments shall be kept on deposit with the bank or trust company having on deposit the fund or funds or account from which such purchase was made. Earnings or profits on any investment of funds in any fund or account established in this Bond Resolution shall be deposited in or credited to the Rebate Fund to the extent necessary as required by Section 12 of this Bond Resolution and any earnings or profits remaining in the Receiving Fund, Operation and Maintenance Fund and Redemption Fund, shall be deposited in or credited to the Receiving Fund. Investments of moneys in the Bond Reserve Account shall be valued at amortized cost, including any amount paid as accrued interest at the time of purchase until the payment of such interest or the next interest payment date. Section 15. Applicable Law. The Series 1989A and the Series 1989B Bonds shall be sold and the proceeds applied in accordance with the provisions of Act 94 . -15- ATTACHMENT A Section 16 . Bond Proceeds . From the proceeds of the sale of the Series 1989A Bonds and the Series 1989B Bonds there first shall be immediately deposited in the Redemption Fund an amount equal to the accrued interest and premium, if any, received on delivery of the Series 1989A Bonds and the Series 1989B Bonds and the City shall receive a credit equal to the amount so deposited against the amount required to be deposited in the Redemption Fund for payment of the next maturing interest on the Current Interest Bonds. The remaining proceeds of the Series 1989A Bonds and the Series 1989B Bonds shall be used to pay the cost of acquiring the Project and paying the cost of issuing the Series 1989A Bonds and the Series 1989B Bonds . Section 17 . Covenants . The City covenants and agrees with the Registered Owners of the Bonds that so long as any of the Bonds remain as Outstanding Bonds and unpaid as to either princi- pal or interest: (a) The Board 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 refer- ence to the System required by the Constitution and laws of the State of Michigan and this Bond Resolution. (b) The City and the Board will not sell, lease, mort- gage or otherwise dispose of any part of the System, except for sales or exchanges of property or facilities ( 1) which are not useful in the operation of the System, or (2) for which the proceeds received are, or the fair market value of the subject property is, less than 1% of the Revenues for the preceding fiscal year, or ( 3) which will not impair the ability of the Board to comply with the rate covenant described in Section 9 of this Bond Resolution. Section 18. Additional Bonds . The right is reserved, in accordance with the provisions of Act 94, to issue additional bonds payable from the Net Revenues of the System which shall be of equal standing and priority of lien on the Net Revenues of the System with the Series 1989A Bonds and the Series 1989B Bonds, but only for the following purposes and under the following terms and conditions: (a) For repairs, extensions, enlargements and improve- ments to the System or for the purpose of refunding a part of any Outstanding Bonds (unless such partial refunding is done in compliance with (b) below) and paying costs of issuing such Additional Bonds, including deposits which may be required to be made to a bond reserve account. Bonds for -16- ATTACHMENT A such purposes shall not be issued pursuant to this subpara- graph (a) unless the average actual or augmented Net Revenues of the System for the fiscal year of the System ending not more than 15 months prior to the sale of Additional Bonds shall be equal to at least one hundred twenty five ( 125%) percent of the maximum Aggregate Debt Service Requirement in any current or future fiscal year on the Outstanding Bonds and on the Additional Bonds then being issued. If the Addi- tional Bonds are to be issued in whole or in part for refund- ing Outstanding Bonds, the maximum Aggregate Debt Service shall be determined by deducting from the principal and interest requirements for each operating year the annual Aggregate Debt Service Requirement of any Bonds to be refunded from the proceeds of the Additional Bonds. Net Revenues may be augmented as follows for the pur- poses of this subsection (a) : ( 1) If the System rates, fees or charges shall be increased at or prior to the time of authorizing the Additional Bonds, the Net Revenues may be aug- mented by an amount which in the opinion of the Consulting Engineer will reflect the effect of the increase had the System's billings during such time been at the increased rates. (2) The actual Net Revenues may be augmented by the estimated increase in Net Revenues which in the opinion of the Consulting Engineer will accrue as a result of new customers which have not been ser- viced during the fiscal year described in paragraph (a) above or as a result of the acquisition of the repairs, extensions, enlargements and improvements to the System which have been made during or sub- sequent to the fiscal year described in paragraph (a) above or which will be acquired in whole or in part from the proceeds of the Additional Bonds to be issued. No Additional Bonds of equal standing as to the Net Revenues of the System shall be issued pursuant to the autho- rization contained in subparagraphs (a) or (c) if the City shall then be in default in making its required payments to the Operation and Maintenance Fund or the Redemption Fund. (b) For refunding all of the Outstanding Bonds and paying costs of issuing such Additional Bonds . For refunding a part of the Outstanding Bonds and paying costs of issuing such Additional Bonds, if after giving effect to the refund- ing the maximum amount of Aggregate Debt Service in each future fiscal year shall be less than the Aggregate Debt -17- ATTACHMENT A Service in each future fiscal year prior to giving effect to the refunding. (c) Additional Bonds may be issued without meeting any of the conditions and tests set forth in subsection (a) above for any one or more of the following purposes: ( 1) to pay the cost of acquisition and construction of any repairs, replacements, betterments, improvements, major renewals or corrections of any damage or loss to the System necessary, in the opinion of the Consulting Engineer, to keep the System in good operating condition or to prevent a loss of Revenues therefrom or (ii) to pay the cost of decommissioning, dis- posal or termination of the System. Determination by the Board as to existence of conditions permit- ting the issuance of Additional Bonds shall be conclusive. Notwithstanding the foregoing requirements of Section 18, the Board reserves the right to issue Junior Lien Bonds payable as provided herein. Section 19. Events of Default. Each of the following events, with respect to an issue of Bonds, is hereby declared an "Event of Default" : (a) default in the payment of the principal of, or interest, or redemption premium, if any, on any Bond after the same shall become due, whether at maturity or upon call for redemption; or (b) default by the City or the Board in the performance or observance of any other of the covenants, agreements or conditions on their part in this Bond Resolution, or con- tained in the Bonds; provided no default shall constitute an Event of Default until written notice thereof shall have been given by the Registered Owners of not less than twenty per- cent (20%) in principal amount of the Outstanding Bonds to the City and the City shall have had sixty (60) days after receipt of such notice to correct such default or cause the same to be corrected and shall not have corrected such default or caused the same to be corrected within such period; and provided, further, that if the default be such that it cannot be corrected within such period, it shall not constitute an Event of Default if action to correct the same is instituted within such period and diligently pursued until the default is corrected. Section 20. Appointment of Receiver and Statutory Rights . The Registered Owners of Bonds representing in the aggregate principal amount not less than twenty percent (20%) of all Out- standing Bonds, may protect and enforce the statutory lien and -18- ATTACHMENT A pledge of the funds and accounts and Net Revenues created by Act 94, and enforce and compel the performance of all duties of the officials of the City and the Board, including the fixing of sufficient rates, the collection of Revenues, the proper segrega- tion of Revenues, and the proper application of Revenues . In addition to the rights conferred to Registered Owners by the Resolution, the Registered Owners shall have all the rights con- ferred by Act 94. The statutory lien upon the Net Revenues, however, shall not be construed to compel the sale of the System or any part thereof. Section 21. Effect of Waiver and Other Circumstances . No delay or omission of any Registered Owner to exercise any right or power arising upon the happening or an Event of Default shall impair any right or power or shall be construed to be a waiver of any such Event of Default or be an acquiescence therein and every power and remedy given by this Bond Resolution to the Registered Owners may be exercised from time to time and as often as may be deemed expedient by the Registered Owners. Section 22 . Bond Form. The Current Interest Bonds shall be in substantially the following form: -19- ATTACHMENT A [SERIES 1989A BONDS] [SERIES 1989B BONDS] UNITED STATES OF AMERICA STATE OF MICHIGAN INGHAM, EATON AND CLINTON COUNTIES CITY OF LANSING WATER SUPPLY AND ELECTRIC UTILITY SYSTEM REVENUE BONDS, SERIES 1989_ Interest Maturity Date of Rate Date Original Issue CU IP REGISTERED OWNER: PRINCIPAL AMOUNT: The CITY OF LANSING, Ingham, Eaton and Clinton Counties, State of Michigan (the "City" ) , for value received, hereby promises to pay the Principal Amount shown above to the Registered Owner specified above on the Maturity Date specified above with interest thereon from the Date of Original Issue spec- ified above until paid at the Interest Rate per annum specified above, payable on July 1, 1990, and on each January 1 and July 1 thereafter until the obligation of the City to pay the Principal Amount is satisfied. Principal of this bond ispayable ther transat the principal office of or such fer agent as the City may hereinafter designate by notice mailed to the registered owner not less than 60 days p Y interest payment date (the "Transfer Agent" ) . Interest on this bond is payable to the registered owner of this bond as of the 15th day of the month next preceding the payment date as shown on the registration books of the City kept by the Transfer Agent by check or draft mailed to the registered owner at the registered address, and for the prompt payment thereof, the revenues of the facilities of the City for the supply and distribution of water and the generation and distribution of electricity, steam and heat (the ,System" ) after provision has been made for reasonable and necessary expenses of operation, maintenance and administra- tion of the System (the "Net Revenues" ) , are irrevocably pledged and a statutory lien thereon has been created. Interest on this Bond shall be computed on the basis of a 360-day year consisting of twelve 30-day months. -20- ATTACHMENT A [Applicable Only to Series 1989B Bonds - Upon payment of a fee of $15.00 and written notice received by the Transfer Agent and the Board not less than 15 days prior to a redemption date fixed by the Registered Owner, which date shall be a January 1 or July 1, this Bond shall be redeemed by the City at a redemption price equal to the principal amount plus accrued interest to the redemption date. ] This bond is one of a series of bonds of like tenor, except as to denomination, rate of interest, date of maturity and prior redemption, aggregating the principal sum of $ , issued pursuant to a Bond Resolution (the "Bond Resolution") adopted by the Board of Water and Light of the City (the "Board") on 1989, 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 part of the cost of remodeling, updat- ing and extending the life of the System and the costs of issuing the bonds. 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 may hereafter be issued, the rights and limitations on the owners of the bonds and the general covenants and provisions pursuant to which this bond is issued, reference is made to the Bond Resolution. Bonds of this series maturing prior to July 1, 1998, are not subject to redemption prior to their respective dates of matur- ity. Bonds of this series maturing on January 1, 1998, and thereafter are subject to redemption prior to maturity at the option of the Board acting for the City, at any time on and after January 1, 1997, in whole or in part, in the amount selected by the Board, in order of maturities selected by the Board and within a maturity by lot, at the redemption prices, expressed as a percentage of principal amount, set forth in the following table, plus accrued interest to the date of redemption: Redemption Dates Redemption (both inclusive Price July 1, 1997, to June 30, 1999 102% July 1, 1999, to June 30, 2001 101 July 1, 2001, and thereafter 100 Notice of call of bonds for redemption shall be mailed to the registered owner not less than 30 days prior to the date fixed for redemption at the address shown on the registration books of the City. Failure to receive such notice shall not affect the validity of the proceedings for redemption. Bonds -21- ATTACHMENT A called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the Transfer Agent to redeem the bonds called for redemption. This bond is a self-liquidating bond and is not a general obligation of the City or the Board and does not constitute an indebtedness of the City or the Board within any constitutional, statutory or charter limitation, but is payable, both as to principal and interest, solely from the Net Revenues of the System. The principal of and interest on this bond are secured by a statutory lien on the Net Revenues of the System. The Board 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 out- standing, such rates for service furnished by the System as shall be sufficient to provide for payment of the principal of and interest on the bonds of this issue and any other bonds payable from the net revenues as and when the same shall become due and payable, and to maintain a bond redemption fund therefor, to provide for the payment of expenses of administration and opera- tion and such expenses for maintenance of the System as are nec- essary 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 Bond Resolution. This bond is transferable only upon the registration books of the City kept by the Transfer Agent by the registered owner hereof in person, or by his 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 its 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 Bond Resolution authorizing the bonds, and upon the payment of the charges, if any, therein prescribed. The City shall not be required (i) to issue, register the transfer of, or exchange any Bond during a period beginning at the opening of 15 business days before the day of the mailing of a notice of redemption of Bonds selected for redemption under this Bond Resolution and ending at the close of business on the day of that mailing, or (ii) to register the transfer of or exchange any Bond selected for redemption in whole or in part, except the unredeemed portion of Bonds being redeemed in part. It is hereby certified and recited that all acts, condi- tions 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. -22- ATTACHMENT A This bond is not valid or obligatory for any purpose until the Certificate of Authentication on this bond has been executed by the Transfer Agent. IN WITNESS WHEREOF, the City of Lansing, Ingham, Eaton and Clinton Counties, State of Michigan, by and through its Board of Water and Light, has caused this bond to be executed with the facsimile signatures of its Chairman and its Secretary and the corporate seal of the City to be printed on this bond. CITY OF LANSING By: (FACSIMILE) Chairman (Seal) By: (FACSIMILE) Secretary -23- ATTACHMENT A Certificate of Authentication This bond is one of the bonds described in the within- mentioned Bond Resolution. Transfer Agent By: Authorized Representative Date of Authentication: -24- ATTACHMENT A ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Please print or typewrite name and address of transferee) the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within bond on the books kept for regis- tration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: The signature(s) to this assignment must correspond with the name as it appears upon the face of the within bond in every particular, with- out alteration or enlargement or any change whatever. Signature(s) must be guaranteed by a commercial bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. The transfer agent will not effect trans- fer of this bond unless the information concerning the transferee requested below is provided. Name and Address: PLEASE INSERT SOCIAL SECURITY NUMBER OR OTHER IDENTIFYING NUMBER OF TRANSFEREE. ( Include information for all joint owners if the bond is held by joint account) ( Insert number for first named transferee if held by joint account) -25- ATTACHMENT A The Capital Appreciation Bonds shall be in substantially the following form: -26- ATTACHMENT A UNITED STATES OF AMERICA STATE OF MICHIGAN INGHAM, EATON AND CLINTON COUNTIES CITY OF LANSING WATER SUPPLY AND ELECTRIC UTILITY SYSTEM REVENUE BONDS, SERIES 1989B Maturity Date of Date Original Issue CUSIP REGISTERED OWNER: ORIGINAL PRINCIPAL AMOUNT PER $1,000 AMOUNT DUE AT MATURITY: AMOUNT DUE AT MATURITY: $ The CITY OF LANSING, Ingham, Eaton and Clinton Counties, State of Michigan (the "City" ) , for value received, hereby promises to pay the Amount Due At Maturity shown above to the Registered Owner specified above on the Maturity Date specified above. The Amount Due At Maturity is payable at the principal office of or such other transfer agent as the City may hereinafter designate by notice mailed to the registered owner not less than 60 days prior to any interest payment date (the "Transfer Agent" ) . For the prompt payment of the Amount Due At Maturity, the revenues of the facilities of the City for the supply and distribution of water and the generation and distribu- tion of electricity, steam and heat (the "System") after provi- sion has been made for reasonable and necessary expenses of operation, maintenance and administration of the System (the "Net Revenues" ) , are irrevocably pledged and a statutory lien thereon has been created. If the Amount Due At Maturity shall not be paid at the Matur- ity Date, the Amount Due At Maturity shall thereafter bear interest at the rate of % per annum. Upon payment of a fee of $15.00 and written notice received by the Transfer Agent and the Board not less than 15 days prior to a redemption date fixed by the Registered Owner, which date -27- ATTACHMENT A shall be a January 1 or July 1, this Bond shall be redeemed by the City at a redemption price equal to the Accreted Amount on the redemption date. This bond is one of a series of bonds of like tenor, except as to denomination, rate of interest, date of maturity and prior redemption, aggregating the principal sum of $ , issued pursuant to a Bond Resolution (the "Bond Resolution" ) adopted by the Board of Water and Light of the City (the "Board" ) on 1989, 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 part of the cost of remodeling, updat- ing and extending the life of the System and the costs of issuing the bonds. 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 may hereafter be issued, the rights and limitations on the owners of the bonds and the general covenants and provisions pursuant to which this bond is issued, reference is made to the Bond Resolution. This Bond is not subject to redemption prior to July 1, 1997 . This Bond is subject to redemption prior to the Maturity Date, at the redemption prices, expressed as a percentage of the Accreted Amount on the redemption date, set forth in the following table: Redemption Dates Redemption (both inclusive) Price July 1, 1997, to June 30, 1999 102% July 1, 1999, to June 30, 2001 101 July 1, 2001, and thereafter 100 Notice of call of bonds for redemption shall be mailed to the registered owner not .less than 30 days prior to the date fixed for redemption at the registered address shown on the registration books of the City. Failure to receive such notice shall not affect the validity of the proceedings for redemption. Bonds called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the Transfer Agent to redeem the bonds called for redemption. The following table sets forth, for each date therein, the Accreted Amount of this Bond per $1, 000 Amount Due At Maturity: -28- ATTACHMENT A Accreted Accreted Date Amount Date Amount This bond is a self-liquidating bond and is not a general obligation of the City and does not constitute an indebt- edness of the City within any constitutional, statutory or charter limitation, but is payable, both as to principal and interest, solely from the Net Revenues of the System. The prin- cipal of and interest on this bond are secured by a statutory lien on the Net Revenues of the System. The Board 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 out- standing, such rates for service furnished by the System as shall be sufficient to provide for payment of the principal of and interest on the bonds of this issue and any other bonds payable from the net revenues as and when the same shall become due and payable, and to maintain a bond redemption fund therefor, to provide for the payment of expenses of administration and opera- tion 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 Bond Resolution. This bond is transferable only upon the registration books of the City kept by the Transfer Agent by the registered owner hereof in person, or by his 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 its 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 Bond Resolution authorizing the bonds, and upon the payment of the charges, if any, therein prescribed. The City shall not be required (i) to issue, register the transfer of, or exchange any Bond during a period beginning at the opening of 15 business days before the day of the mailing of a notice of redemption of Bonds selected for redemption under this Bond Resolution and ending at the close of business on the day of that mailing, 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. It is hereby certified and recited that all acts, condi- tions 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 -29- ATTACHMENT A 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 Certificate of Authentication on this bond has been executed by the Transfer Agent. IN WITNESS WHEREOF, the City of Lansing, Ingham, Eaton and Clinton Counties, State of Michigan, by and through its Board of Water and Light, has caused this bond to be executed with the facsimile signatures of its Chairman and its Secretary and the corporate seal of the City to be printed on this bond. CITY OF LANSING By: (FACSIMILE) Chairman (Seal) By: (FACSIMILE) Secretary -30- ATTACHMENT A Certificate of Authentication This bond is one of the bonds described in the within- mentioned Bond Resolution. Transfer Agent By: Authorized Representative Date of Authentication: -31- ATTACHMENT A ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Please print or typewrite name and address of transferee) the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within bond on the books kept for regis- tration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: The signature(s) to this assignment must correspond with the name as it appears upon the face of the within bond in every particular, with- out alteration or enlargement or any change whatever. Signature(s) must be guaranteed by a commercial bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. The transfer agent will not effect trans- fer of this bond unless the information concerning the transferee requested below is provided. Name and Address: PLEASE INSERT SOCIAL SECURITY NUMBER OR OTHER IDENTIFYING NUMBER OF TRANSFEREE. (Include information for all joint owners if the bond is held by joint account) (Insert number for first named transferee if held by joint account) -32- ATTACHMENT A Section 23. Amendments; Consent of Registered Owners . (a) The City, from time to time and at any time, sub- ject to the conditions and restrictions in this Bond Resolu- tion, may by and through its Board, adopt one or more supple- mental or amendatory resolutions which thereafter shall form a part hereof, for any one or more or all of the following purposes: (i) To issue Additional Bonds or Junior Lien Bonds; (ii) To add to the covenants and agreements of the City contained in this Bond Resolution, other covenants and agreements thereafter to be observed or to surrender, restrict or limit any right or power herein reserved to or conferred upon the City and the Board (including but not limited to the right to issue Additional Bonds) ; (iii) To make such provisions for the purpose of curing any ambigui..t:y, or of curing, correcting or supplementing any defective provisions contained in this Bond Resolution, or in regard to matters or questions arising under this Bond Resolution, as the City may deem necessary or desirable and not inconsistent with this Bond Resolution and which shall not have a material, adverse effect on the interests of the Registered Owners of the Bonds; (iv) To increase the size or scope of the System; and (v) To make such modifications in the pro- visions hereof as may be deemed necessary by the City to accommodate the issuance of Additional Bonds or Junior Lien Bonds which (a) are "Capital Appreciation Bonds" or "Zero Coupon Bonds" to the extent permitted by law or (b) are variable rate bonds, but only if such modifications, in the writ- ten opinion of nationally recognized bond counsel filed with the Board, do not result in materially diminishing the security hereby granted to the Registered Owners of any Outstanding Bonds . Any amendment or supplemental resolution or resolution autho- rized by the provisions of this Section 23(a) may be adopted by the City, by and through its Board, without the consent of or notice to the Registered Owners of any of the Outstanding Bonds, notwithstanding any of the provisions of Section 23(b) below. -33- ATTACHMENT A (b) With the consent of the Registered Owners of not less than fifty one percent (51%) in principal amount of the Bonds then outstanding the City, by and through its Board, may from time to time and at any time adopt a resolution or resolutions supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Bond Resolution or of any supplemental resolution; provided, however, that no such supplemental resolution shall (i) extend the fixed maturity of any Bond, change a Mandatory Redemption Requirement for any series of Bonds or reduce the rate of interest thereon or extend the time of payment of interest, or reduce the amount of the principal thereof, or reduce or extend the time for payment of any premium payable on the redemption thereof, without the consent of the Registered Owner of each Bond so affected, or (ii) reduce the aforesaid percentage of Registered Owners of the Bonds required to approve any such supplemental resolu- tion, or (iii) deprive the Registered Owners of the Bonds, except as aforesaid, of the right to payment of the Bonds from the Net Revenues, without the consent of the Registered Owners of all the Outstanding Bonds or, (iv) cause any modi- fication or reduction of the lien on or pledge of the Net Revenues or the funds or accounts established hereunder. No amendment may be made under this Section 23(b) which affects the rights or duties of the insurer of any of the Bonds with- out its consent. It shall not be necessary for the consent of the Registered Owners under this Section 23(b) to approve the particular form of any proposed supplemental resolution, but it shall be sufficient if such consent shall approve the substance thereof. Promptly after the adoption by the City of any supplemental resolution pursuant to the provisions of this Section 23(b) , the City shall cause the Transfer Agent to mail a notice by regis- tered or certified mail to the Registered Owners of all outstand- ing Bonds at their addresses shown on the bond register or at such other address as is furnished in writing by such Registered Owner to the Transfer Agent setting forth in general terms the substance of such supplemental resolution. Section 24 . Sale of the Bonds . The Series 1989A Bonds shall be sold at a public sale published in accordance with law in a publication to be selected by the General Manager pursuant to a Notice of Sale in substantially the following form: -34- ATTACHMENT A OFFICIAL NOTICE OF SALE $14,000,000 CITY OF LANSING, BY AND THROUGH THE BOARD OF WATER AND LIGHT OF THE CITY OF LANSING COUNTIES OF INGHAM, EATON AND CLINTON, STATE OF MICHIGAN WATER SUPPLY AND ELECTRIC UTILITY SYSTEM REVENUE BONDS, SERIES 1989A SEALED BIDS for the purchase of the above bonds will be received by the undersigned at the Secretary's office, Board of Water and Light of the City of Lansing, 123 W. Ottawa, Lansing, Michigan, on the 24th day of October, 1989, until 3:00 o'clock, P.M. , Eastern Daylight Time, at which time and place said bids will be publicly opened and read. IN THE ALTERNATIVE: Sealed bids will also be received on the same date and until the same time by an agent of the undersigned at the office of the Municipal Advisory Council of Michigan, 1158 First National Building, Detroit, Michigan 48226, where they will be publicly opened and read. Bids opened at Detroit, Michigan, will be read first. Bidders may choose either location to pre- sent bids and good faith checks, but may not present bids at both locations. BOND DETAILS: The bonds will be fully registered bonds of the denomination of $5,000 each or any integral multiple thereof not exceeding the aggregate principal amount for each maturity at the option of the purchaser thereof, dated October 1, 1989, and will bear interest from their date payable on July 1, 1990, and semi- annually thereafter. Said bonds will mature on the first day of July as follows: Year Amount Year Amount 1990 $1,000,000 1998 $1,000,000 1991 1, 000,000 1999 500,000 1992 1,000,000 2000 1,000,000 1993 1,000,000 2001 1,250,000 1994 250,000 2002 1,250,000 1995 1,000,000 2003 1,250,000 1996 1,000,000 2004 500,000 1997 1,000,000 -35- ATTACHMENT A PRIOR REDEMPTION: Bonds maturing on and after July 1, 1998, are subject to redemption prior to maturity, in whole or in part in such order as the City shall determine and by lot within a matur- ity, in integral multiples of $5,000, at the following redemption prices (expressed as percentages of the principal amount of the bonds or portions of bonds to be redeemed) , plus accrued interest to the redemption date: Period During Which Redeemed (Both Dates Inclusive) Redemption Price July 1, 1997, to June 30, 1999 102% July 1, 1999, to June 30, 2001 101 July 1, 2001, and thereafter 100 Not less than thirty days ' notice of redemption shall be given by mail to the registered holder at the registered address. Bonds or portions of bonds called for redemption shall not bear inter- est after the redemption date, provided funds are on hand with the bond registrar and paying agent to redeem the same. INTEREST RATE AND BIDDING DETAILS: The bonds shall bear interest at a rate or rates not exceeding 9% 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 two percentage points. No proposal for the purchase of less than all of the bonds or at a price less than 98% of their par value will be considered. BOND REGISTRAR AND TRANSFER AGENT: The bonds shall be payable as to principal in lawful money of the United States upon surrender thereof at First of America Bank-Central, in the City of Lansing, Michigan, the bond registrar and transfer agent. Interest shall be paid to the registered owner of each bond as shown on the registration books at the close of business on the 15th day of the calendar month preceding the month in which the interest payment is due. Interest shall be paid when due by check or draft drawn upon and mailed by the bond registrar and transfer agent to the registered owner at the registered address. The City of Lansing may from time to time as required designate a successor bond registrar and transfer agent. REGISTRATION OF BONDS: The successful bidder shall notify the bond registrar and transfer agent in writing of the denominations and initial registered owners of the bonds on or before 5:00 P.M. , October 31, 1989 . In the event of the failure so to notify the bond registrar and paying agent within such time, the City shall specify the denominations of bonds to be delivered to the -36- ATTACHMENT A successful bidder and the successful bidder shall be the initial registered owner thereof. PURPOSE AND SECURITY: The bonds are issued under the provisions of Act 94, Public Acts of Michigan 1933, as amended, and a bond resolution (the "Bond Resolution" ) adopted by the Board of Water and Light of the City of Lansing ( "Board" ) on September 26, 1989, for the purpose of paying part of the cost of remodeling, updating and extending the life of the water supply and electric utilities of the City of Lansing, Michigan, and to pay issuance costs for the bonds . The bonds, except to the extent payable from bond proceeds, are payable solely from the net revenues of the water supply and distribution and electric, heat and steam generating and distri- bution systems (the "System" ) of the City of Lansing and any additions thereto, and a statutory first lien on the net revenues of the System has been established by the Bond Resolution. The Board 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, and to provide for such other expenditures and funds for the System as are required by the Bond Resolution. The City, acting through its Board, anticipates that it will issue Water Supply And Electric Utility System Revenue Bonds, Series 1989B in an aggregate principal amount not to exceed $3,000,000, the proceeds of which will be used for the same pur- pose as the proceeds of the Series 1989A Bonds, which bonds shall be secured on a parity with the Series 1989A Bonds. The rights and remedies of bondholders may be affected by bank- ruptcy laws or other creditors ' rights legislation now existing or hereafter enacted. GOOD FAITH: A certified or cashier's check in the amount of $280,000 drawn upon an incorporated bank or trust company and payable to the order of the Treasurer of the Board of Water and Light 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. 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 will be immediately cashed and payment for the balance of the purchase price of the bonds shall be made at the closing. -37- ATTACHMENT A 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 November 1, 1989, to their matur- ity and deducting therefrom any premium. LEGAL OPINION: Bids shall be conditioned upon the approving opinion of Dickinson, Wright, Moon, Van Dusen & Freeman, attor- neys of Lansing and 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 pur- chaser of the bonds at the delivery thereof. The fees of Dickinson, Wright, Moon, Van Dusen & Freeman 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 approving opinion as to the validity of the bonds, Dickinson, Wright, Moon, Van Dusen & Freeman has made no inquiry as to any financial information, statements or material contained in 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 information, statements or materials. TAX MATTERS: The approving opinion of bond counsel will include an opinion to the effect that under existing law, the interest on the bonds (a) is excluded from gross income for federal income tax purposes, (b) is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; such opinion will note, however, that certain cor- porations must take into account interest on the bonds in deter- mining adjusted net book income (adjusted current earnings for taxable years beginning after December 31, 1989) for the purpose of computing such alternative minimum tax. The opinion set forth in clause (a) above will be subject to the condition that the City of Lansing comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Code" ) , that must be sat- isfied subsequent to the issuance of the bonds in order that interest thereon be (or continue to be) excluded from gross income for federal income tax purposes . Failure to comply with certain of such requirements could cause the interest on the bonds to be included in gross income retroactive to the date of issuance of the bonds. The City of Lansing has covenanted to comply with all such requirements. Bond counsel will express no opinion regarding other federal tax consequences arising with respect to the bonds . The City of Lansing has not designated the bonds as ' qualified tax-exempt obligations" for purposes of Section 265(b) (3) of the Code. -38- ATTACHMENT A The successful bidder will be required, as a condition of deliv- ery of the bonds, to certify the "issue price" of the bonds within the meaning of Section 1273 of the Code. The form of an acceptable certificate will be provided by bond counsel. In addition, the approving opinion of bond counsel will include an opinion to the effect that under existing law, the bonds and the interest thereon are exempt from all taxation in the State of Michigan except inheritance taxes and taxes on gains realized form the sale, payment or other disposition thereof. CUSIP: CUSIP numbers will be imprinted on all bonds of this issue at the issuer's expense. An improperly printed number will not constitute a basis for the purchaser to refuse to accept delivery. DELIVERY OF BONDS: The City of Lansing will furnish bonds ready for execution at its expense. Bonds will be delivered without expense to the purchaser at New York, New York, Chicago, Illinois, or Detroit, Michigan. 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 deliv- ery by twelve o'clock noon, Eastern Standard Time, on the 45th day following the day of sale, or the first business day there- after 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 cancella- tion, in writing, on the undersigned, in which event the City of Lansing shall promptly return the good faith deposit. Payment for the bonds shall be made in Federal Reserve Funds. Accrued interest to the date of deliver of the bonds shall be paid by the purchaser at the time of delivery. FINANCIAL CONSULTANT: Further information with respect to said bonds may be obtained from First of Michigan Corporation, 26th Floor, 100 Renaissance Center, Detroit, Michigan 48243. Telephone: ( 313) 259-2600. THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS. ENVELOPES containing the bids should be plainly marked "Proposal for Bonds. " City of Lansing, by and through the Board of Water and Light of the City of Lansing By: -39- ATTACHMENT A The Series 1989B Bonds shall be sold at private sale in limited amounts per purchaser so that no person may purchase both Current Interest Bonds and Capital Appreciation Bonds and no person may purchase all or portions of Series 1989B Bonds exceeding $5,000 of principal amount of Current Interest Bonds or $10,000 of amount of Capital Appreciation Bonds due at maturity. Section 25. Bond Resolution to Constitute Contract. In con- sideration of the purchase and acceptance of any and all of the Bonds authorized to be issued hereunder by those who shall hold the same from time to time, this Bond Resolution shall be deemed to be and shall constitute a contract between the City and the Registered Owners from time to time of the Bonds and the lien and pledge made in this Bond Resolution and the covenants and agree- ments herein set forth to be performed on behalf of the City shall be for the equal benefit, protection and security of the Registered Owners of any and all of the Bonds, all of which, regardless of the time or times of their authentication and delivery or maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof except as expressly provided in or permitted by this Bond Resolution. Section 26 . Conflicting Resolutions. All resolutions or orders, or parts thereof, in conflict with the provisions of this Bond Resolution are repealed. Section 27 . Severability and Paragraph Headings. If any section, paragraph, clause or provision of this Bond Resolution shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Bond Resolution. The paragraph headings in this Bond Resolution are furnished for convenience of reference only and shall not be considered to be a part of this Bond Resolution. Section 28. Publication and Recordation. This Bond Resolu- tion shall be published in full in The State Journal, a newspaper of general circulation in the City of Lansing qualified under State law to publish legal notices, promptly after its adoption, and shall be recorded in -the minutes of the Board and such recording authenticated by the signatures of the Chairman and the Secretary. Section 29 . Effective Date. This Bond Resolution shall be effective immediately upon its adoption. -40- ATTACHMENT A Adopted and signed on the 24th day of October, 1989 . Jaw Chairman Se6l6t.& ADOPTED: YEAS Camrd-ssioners Belen. Evans, Hassler, Jessop. Strolle. and Williams NAYS None ABSTAIN None -41- ATTACHMENT A STATE OF MICHIGAN ) SS: COUNTY OF INGHAM ) I, the undersigned, the Secretary of the Board of Water and Light of the City of Lansing, do hereby certify that the forgoing is a true and complete copy of a resolution duly adopted by the Board of Water and Light of the City of Lansing at a regular meeting held on October 24, 1989, the original of which is on file in my office. I further certify that the notice of said meeting was given in accordance with the provisions of the Open Meetings Act. Secreta , Boar of Water and Light of t e City of Lansing -42- ATTACHMENT A EXHIBIT A Series 1989A Bonds July 1 Principal Amount 1990 $1,000,000 1991 1,000,000 1992 1,000,000 1993 1,000,000 1994 250,000 1995 1,000,000 1996 1,000,000 1997 1,000,000 1998 1,000,000 1999 500,000 2000 1,000,000 2001 1,250,000 2002 1,250,000 2003 1,250,000 2004 500,000 ATTACHMENT A EXHIBIT B Series 1989B Current Interest Bonds July 1 Principal Amount 1994 $700,000 1999 850,000 ATTACHMENT A EXHIBIT C Series 1989B Capital Appreciation Bonds July 1 Principal Amount at Maturity 2004 $450,000 JMW/32063/0014/AA7/ljd ATTACHMENT B Resolution 89-10-4 At a regular meeting of the Board of Water and Light of the City of Lansing, Michigan, held in the Board Room, 123 West Ottawa Street, Lansing, Michigan, on the 24th day of October, 1989, at 5:30 p.m. PRESENT: Commissioners Belen, Evans, Hassler, Jessop, Strolle, and Williams ABSENT: Commissioners McComb and Sebolt The Chairman announced that this is the time set for considering the proposals for the purchase of the Water Supply and Electric Utility System Revenue Bonds, Series 1989A, as advertised in The Bond Buyer on October 6, 1989 . The Treasurer/Controller presented the following pro- posals which had been received on or before 3 o'clock p.m. , Eastern Daylight Time, on this day: Net Net Interest Interest Bidder Discount Cost Rate Clayton Brown & Associates $279,895 $7,326,686 6.7320% Ehrlich Bober & Co. 178,475 7,329,475 6 .7345 John Nuveen & Co. 260,545 7,336,712 6.7412 Prescott, Ball & Turben and Old Kent Bank of Lansing 280,000 7,260,625 6. 6713 Dean Witter Reynolds Inc. 174,437 7,351,104 6.7544 ATTACHMENT B Mesirow Capital Markets, Kidder, Peabody & Co. , Marine Midland Bank and Rodman & Renshaw, Inc. 280,000 7,253,375 6.6646 Merrill Lynch Capital Markets 280,000 7,381,583 6 .7820 The following resolution was offered by Camdssioner Jessop , who moved its adoption, and seconded by Cmrmissioner Belen AWARD RESOLUTION RESOLVED T:IAT: 1. Unless otherwise defined herein or the context indicates a contrary meaning, capitalized terms used in this Award Resolution shall have the same meaning as in the Amended And Restated Bond Resolution adopted by the Board on this date. 2 . The aggregate principal amount of Series 1989A Bonds shall be $14,000,000 maturing in the years and amounts set forth on Exhibit A of the Bond Resolution. 3. The proposal of Mesirow Capital Markets, Kidder, Peabody & Co. , Marine Midland Bank and Rodman & Renshaw, Inc. to purchase the Series 1989A Bonds at par and accrued interest to the date of delivery, less a discount of $280,000, and bearing interest per annum as follows : -2- ATTACHMENT B Year of Maturity Principal Amount Interest Rate 1990 $1,000,000 7 .75% 1991 1,000,000 7 .75 1992 1,000,000 7 .75 1993 1,000,000 7 .75 1994 250,000 6.30 1995 1,000,000 6.40 1996 1,000,000 6.50 1997 1,000,000 6.60 1998 1,000,000 6. 65 1999 500,000 6.70 2000 1,000,000 6.75 2001 1,250,000 6.80 2002 1,250,000 5.75 2003 1,250,000 5.75 2004 500,000 5.75 being the bid which results in the lowest net interest cost, is accepted. All other proposals are rejected and the good faith checks of the unsuccessful bidders are ordered returned. 4. The Series 1989A Bonds shall be issued in accor- dance with the terms set forth in the Bond Resolution and bearing interest as set forth above. 5. The actions of the General Manager and the Treasurer/Controller in fixing October 24, 1989, for receipt of bids for the Series 1989A Bonds and in causing a Notice Of Sale to be published in The Bond Buyer on October 6, 1989, is approved. 6. The form and substance of the Official Statement relating to the Series 1989A Bonds dated October 16, 1989, is hereby approved and delivery of as many copies (revised to reflect the interest rates adopted by this Award Resolution and to delete references to the date for receiving bids) as are -3- ATTACHMENT B reasonably required by the purchasers of the Series 1989A Bonds is authorized. 7 . The aggregate principal amount of Current Interest Series 1989B Bonds shall be $1,550,000 maturing in the years and amounts set forth on Exhibit B of the Bond Resolution. The aggregate original principal amount of Capital Appreciation Series 1989B Bonds shall be $448,723.95, all of which shall be due on July 1, 2004. The original issuance date of the Series 1989B Bonds shall be November 15, 1989 . 8. Current Interest Series 1989B Bonds in the follow- ing principal amounts and bearing interest as follows shall be offered for sale in Michigan to individuals bearing interest as follows : Year of Maturity Principal Amount Interest Rate 1994 $700,000 6.30 1999 850,000 6.70 9 . Capital Appreciation Series 1989B Bonds maturing on July 1, 2004, having an aggregate original principal amount of $448,723.95 shall be offered for sale in Michigan to individuals at $378. 67 per $1,000 amount due at maturity. 10. First of America Bank-Southeast Michigan, N.A. is designated and appointed to perform the duties of the Transfer Agent pursuant to the Bond Resolution. -4- ATTACHMENT B 11. To the extent orders for Series 1989B Bonds exceed the amount of - Series 1989B Bonds available, the Series 1989B Bonds shall be sold on a "first come, first served basis. " The General Manager and the Treasurer/Controller are each authorized and directed to establish the procedures for and complete the sale and delivery of the Series 1989B Bonds. 12 . All resolutions or orders, or parts thereof, in conflict with this Award Resolution are repealed. 13 . This Award Resolution shall be effective immedi- ately upon its adoption. Adopted and signed on the 24th day of October, 1989. J"_ Chairman, Secret YEAS C n-nisioners Belen, Evans, Hassler, Jessop, Strolle, Williams NAYS None ABSTAIN None -5- ATTACHMENT B STATE OF MICHIGAN ) SS: COUNTY OF INGHAM ) I, the undersigned, the Secretary of the Board of Water and Light of the City of Lansing, do hereby certify that the forgoing is a true and complete copy of a resolution duly adopted by the Board of Water and Light of the City of Lansing at a regular meeting held on October 24, 1989, the original of which is on file in my office. I further certify that the notice of said meeting was given in accordance with the provisions of the Open Meetings Act. Secretar a d ef Water and Light of th City of Lansing JMW/32063/0014/AB7/ljd -6- October 24, 1989 170 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 89-10-1 (Electric) , of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER STROLLE RESOLVED, That Resolution 89-10-2 (Engineering) of the General Manager's Recommendations be approved. Adopted unanimously. The Commissioners reviewed a copy of a proposed resolution (89-10-3) to amend and restate the Bond Resolution (89-9-13) adopted on September 26, 1989. Following lengthy discussion, the following motion was made: BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolution 89-10-3 (Attachment A) to amend and restate the Bond Resolution approved by this Board on September 26, 1989 be adopted. This action hereby rescinds Resolution 89-9-13. Adopted unanimously. Unanimously. The Commissioners reviewed a copy of the proposed Award Resolution (89-10-4) submitted by Treasurer/Controller Dana Tousley. Following lengthy discussion, the following motion was made: BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 89-10-4 (Attachment B) be approved as presented. Adopted unanimously. 171 October 24, 1989 GENERAL MANAGER'S REMARKS In the absence of the General Manager and the Assistant General Manager, Electric Utility Director Roy Peffley briefed the Commissioners on the following BWL activities: COAL REPORT. The BWL coal inventory is at 56 days based on the current system burn of 3,000 tons/day. The goal is for a 60-day supply. CONSENT ORDER - OTTAWA STATION. A copy of a Notice of Intent to enter into a Final Order by Consent with the State of Michigan, dated October 20, 1989, and signed by Assistant General Joseph Wolfe, relative to the Ottawa Station was handed out for review. At the September 26, 1989 regular meeting it was indicated that a resolution authorizing the General Manager to enter into a Consent Order would be presented to the Board in October for approval. Mr. Peffley reported that the Environmental Protection Agency (EPA) Air Quality Division has been issuing a number of citations across the country. After learning last week that the BWL would be among those to be cited, the decision was made by the General Manager to move swiftly and to sign a letter of intent prior to the October 24 Board meeting. As proof of the BWL's commitment in addressing the opacity problem at Ottawa Station, staff determined that it would be in the utility's best interest to immediately file a Notice of Intent with the Department of National Resources (DNR) Air Quality Division. Following discussion, the Commissioners concurred with this strategy. E.P.A. CITATION - MOORES PARK STATION. Mr. Peffley reported that an _.._......_.............. ......................_ ...................__.................._...........................I............._...... EPA citation was received on October 24, 1989 for opacity violations at Moores Park Station. The Commissioners will receive a report on this citation once a complete examination is made on the charges. It was pointed out that ongoing life extension projects at Moores Park Station should satisfy the violations cited. ACCOUNTS RECEIVABLE REPORT. A copy of an accounts receivable report _...... ... ............._................. . for 13 months ending June 1989 was handed out for review. On a related matter, Mr. Peffley reported on the impact that the closing of Lindell Drop Forge will have on the BWL's accounts receivable. Lindell is a $400,000 per year customer. Staff is currently communicating with other major creditors to assure Lindell pays their current bills. Lindell presently owes the BWL approximately $30,000, and credit arrangements are being made with the attorney representing Lindell. Concern was also expressed regarding demand and ratchet charges for electric, which could have a considerable impact on future monthly billings to Lindell. The Board will be kept advised of further negotiations. 172 October 24, 1989 1989 UNITED WAY REPORT. The BWL surpassed its 1989 monetary goal, . . .. ... thanks. .. .. .. to outstanding support from employees. A total of $106,486 was raised, representing 4% over the goal of $102,000, which qualifies the BWL for the Gold Award. Mr. Peffley pointed out that this is an excellent accomplishment considering that the BWL has fewer employees as compared to last year. BWL United Way Campaign Co-Chairs Terry Graham and Steve Simpson were complimented for their outstanding efforts. Electric Utility Coordination Director Dick Sevic was also recognized for his involvement in the United Way's Loaned Executive Program. An article mentioning the BWL's contribution to United Way will appear in the LANSING STATE JOURNAL on October 26. ERICKSON „STATION OUTAGE. The 18 month scheduled preventive maintenance outage of Erickson S I.ta 1.tion began September 30, 1989 and is expected to be completed by October 28, 1989. With the exception of five outages totalling 36 hours, Erickson Station has operated continuously over this 18 month period with an availability of 91.7%--the national availability average for similar plants is 80%. Mr. Peffley noted that the Preventive Maintenance Program implemented in 1986 is paying off. COAL FREEZEPROOFING. An innovative alternative to traditional freeze conditioning prac 1.tices was explained. It was reported that chemical freezeproofing eliminates coal from freezing into solid chunks. This new approach could save the BWL as much as $78,000/yr. The Fuels Procurement Department has gone out for bids and selected Nalco Chemical Company to administer its freeze conditioning program for this season. PUBLIC POWER WEEK. Seventeen BWL employees chose to become involved in a bike-a-thon known as "Pedaling for Public Power" in observance o Public Power Week (October 8-14) . This involved soliciting pledges from BWL employees and friends and bicycling around the BWL service territory for approximately 65 :Hiles. A total of $1,269 was raised and the proceeds are being donated to the Area 8 Special Olympics on behalf of the BWL. DISTRICT COOLING STUDY. A copy of a Feasibility Study for a District Cooling Program at the BWL was handed out for information. The results of the study will be reviewed with the Commissioners and staff recommendations on this proposed new venture will be presented at the November Committee of the Whole meeting. 173 October 24, 1989 REMARKS BY BOARD COMMISSIONERS Commissioner Williams remarked that he found the Electric Utility Fiscal Year 1988-89 Annual Review very informative. He asked for a briefing on the decision that led to the change from SUPREMA to the MAPCON II maintenance management system. Mr. Peffley responded that staff encountered a great deal of difficulty with SUPREMA because it was a source coded program, which made it very cumbersome. Following negotiations with Sperry, the BWL was able to receive its portion of the software cost. MAPCON is user friendly and is working very successfully in all BWL maintenance activities. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN That the absences of Commissioners McComb and Sebolt be excused. Adopted unanimously. Adjournment On motion of Commissioner Strolle, the Board adjourned at 6:25 p.m. Mary EYS , cretary Filed: October 26, 1989 Rita M. Bauman, City Clerk 169 October 24, 1989 ENGINEERING (Continued) (Res. No. 89-10-2) BWL and Michigan Department of Natural Resources staff are finalizing agreeable terms and conditions of the Consent Order to have on the agenda of the Air Control Commission's meeting of December 5, 1989. -------------------- TREASURER/CONTROLLER Res. No. 89-10-3 That the attached resolution to amend and restate the Bond Resolution adopted on September 26,1989 be adopted. (See Resolution authorizing Attachment A) amendment and restate- ment of Bond Resolution This action hereby rescinds Resolution 89-9-13. adopted 9-26-89 -------------------------------- Res. No. 89-10-4 It is recommended that the attached Award Resolution authorizing the award of $14 million Revenue Bonds to Resolution RE: Award the lowest and best bidder based on staff's recommendation of $14 Million and total interest cost be approved. (See Attachment B) Revenue Bonds -------------------------------- Respectfully submitted, J. D. Wolfe Assistant General Manager JDW/bg Attachments S OFFICIAL PROCEEDINGS of the DEMOLITION HEARING OFFICERS April 6, 1989 HEARING OFFICER PRESENT: J. Paul Thompson HEARING OFFICER'S ABSENT: Gloria Jones and Don Hartwick BUILDING OFFICIAL PRESENT: John Salmons OLD BUSINESS: None NEW BUSINESS: First Case - 110-112 W. Michigan M. Carol Bambrey was present representing Michigan United Conservation Club. She indicated that MUCC had just purchased the two buildings and would be starting work almost immediately. They planned to take down the old "Western Union" building and would be reconstructing another building to tie into the Jury Rowe Building which would be renovated. MUCC had been wanting to move downtown for some time and were quite excited about the project. Ms. Bambery requested the item be tabled for 90 days. Mr. Salmons explained that the assessed value for 110 W. Michigan is $17,850, and the assessed value for 112 W. Michigan is $44,775. Estimated costs of repairs is well over $200,000. Mr. Thompson explained that the Hearing Officer's role was really quite limited and that they typically did not table matters. He asked Ms. Bambrey if she had a schedule on development. She said no, but explained that there would be a MUCC Board Meeting on April 27, 1989, at which she believed Mo Stein, Architect, would be retained. After that time, she expected things to begin happening fairly quickly. Mr. Thompson reluctantly tabled the matter until the next meeting. Second Case - 111 E. Dwight Mr. Salmons explained the history of the structure. He stated that the assessed value of the building is $9,152, estimated cost of repairs is $12,500. Bernhart Barker and Thomas Anderson were present. Mr. Barker is the nephew of the Owners. He stated that he was attempting to resolve the title problems and would then like to sell the property. Mr. Anderson stated he represented a potential buyer. Mr. Thomspon determined that the structure be made safe for occupancy or demolished within 14 days. Demoliton Hearing Minutes April 6, 1989 Page 2 Third Case - 1213 Princeton The Owners were not present. Mr. Salmons stated that the assessed value of the structure is $6,500, estimated cost of repairs is approxi- mately $9,000. There was discussion as to the condition of the structure. Mr. Thompson determined that the structure at 1213 Pri.nceton be made safe for occupancy or demolished within 14 days. Fourth Case - 2217 N. High The Owner, Frank Basel , was not present. Mr. Salmons explained that this was a dilapidated garage left over from a structure that the City demolished. The value of the structure was around $750 and the estimated cost of repairs were $1 ,200. There was discussion regarding the condition of the structure. Mr. Thompson determined that the structure be made safe or demolished within 14 days. Respec "Illy sub it ed, John Salmons Secretary 0 rn PU 00 rn 0 .H 41 �o 0 H Ei �j a� a Q � OFFICIAL PROCEEDINGS of the DEMOLITION HEARING OFFICERS November 30, 1989 HEARING OFFICERS PRESENT: Don Hartwick HEARING OFFICERS ABSENT: Gloria Jones and J. Paul Thompson BUILDING OFFICIAL PRESENT: Henry Hernandez OLD BUSINESS: None NEW BUSINESS: First Case - 5927 Piper Two parties of interest were present, Mrs. Linda Zeigler and Mr. Richard Taylor. Mr. Hernandez explained that the assessed value of the structure is $-0-, estimated cost of repairs is $10,900. Mrs. Zeigler explained that Mr. Taylor had agreement for use of the structure between herself and her husband. Mr. Taylor had lived in the structure for approximately one year until April 1989, when Delores Fuller, Code Compliance Officer, went through the structure and inspected it. Mrs. Zeigler stated that the inside was totally destroyed and in the past had only been used for storage. There was discussion as to who the owner is regarding the agreement that was signed. Mr. Hartwick explained to both "owners" that all utilities would have to be removed from the structure before the City could possibly recognize its use as storage. Mr. Hartwick determined that the structure at 5927 Piper be made safe for habitation or demolished within 14 days. Second Case - 1820 Perkins Mr. Reginald Wigg, new owner, was present. Mr. Hernandez explained that the assessed value of the structure is $2,900, estimated cost of repair is $6,150. Mr. Wigg explained that since he purchased the property he has made repairs to the electrical and has done some drywalling and other repairs without benefit of permits. Mr. Hartwick asked Mr. Wigg what his intentions were. Mr. Wigg stated he wanted to repair the structure and either rent it or live in it. Mr. Hartwick explained that there are regulations on the size of structures for living units in the Housing Code and that he should have the structure inspected before he did any more work. Mr. Hartwick tabled this case for 60 days with the following conditions to be met by the January meeting. Demolition Hearing Officers Minutes November 30, 1989 Page 2 1. Work performed to date must be inspected by Building Safety Division Inspectors. 2. Work left must be complted by the January meeting. All work must be done with permits. 3. That the structure has been inspected for the ability to legally use it for its intended purpose. Third Case - 5424 S. Logan Mr. Edward Spence, Trustee, was present. Mr. Hernandez explained that the assessed value of the structure is $2,400, estimated cost of repairs is $9,500. Mr. Spence stated that the structure has no salvageable value and that he would be obtaining bids for demolition. Mr. Hartwick determined that the structure at 5424 S. Logan be made safe for habitation or demolished within 14 days. Fourth Case - 1565 Roosevelt The Owner was not present. Mr. Hernandez explained that the assessed value of the structure is $3,025, estimated cost of repairs is $7,300. There was discussion on the dilapidation of this structure. Mr. Hartwick viewed pictures and letters sent to the owner. Mr. Hartwick determined that the structure at 1565 Roosevelt be made safe for habitation or demolished within 14 days. Fifth Case - 3226 W. Jolly Rd. The Owner was not present. Mr. Hernandez explained that assessed value of the structure is $8,600, estimated cost of repairs is $21 ,500. Mr. Hernandez explained that the structure use to be a garage. Mr. Hartwick viewed pictures and letters to the owner. Mr. Hartwick determined that the structure at 3226 W. Jolly Road be made safe for habitation or demolished within 14 days. Sixth Case - 906 N. Pine No Owner was present. Mr. Hernandez explained that the Building Safety Division was only interested in the garage. The assessed value of the garage is $200, the estimated cost of repairs is $2,000. Mr. Hartwick viewed pictures of the garage and letters sent to the owner. Mr. Hartwick determined that the garage at 906 N. Pine be repaired for its intended use or demolished within 14 days. . � ,. -- �� „�� _, < . ., ,. _, � , - . . �_ . . .. � � s ! . . j , _ - i i 1 � ii � � 1� ! Demolition Hearing Officers Minutes November 30, 1989 Page 3 Seventh Case - 3207 Ingham No Owner was present. Mr. Hernandez explained that the assessed value of the structure is $11,800, estimated cost of repairs is $12,000. Mr. Hartwick viewed pictures of the structure and letters sent to the owner. Mr. Hartwick determined that the structure at 3207 Ingham be made safe for habitation or demolished within 14 days. Meeting adjourned at 8:30 p.m. Respectfully submitted, Henry Hernandez Acting Secretary � C O t trJ C � t tb F LIJ F F G W e O t F- k co H G OFFICIAL PROCEEDINGS of the BUILDING BOARD OF APPEALS December 12, 1989 The regular meeting of the City of Lansing, Building Board of Appeals was held on Tuesday, December 12, 1989, at 2:00 p.m. at Impression 5 Science Museum, 200 Museum Drive, Lansing, Michigan. The meeting was called to order by Chairman Richard Stuckman with the roll call showing the following members present: Members Present: Richard Stuckman Richard Jones Joe Wilcox Members Absent Randall Kamm Frank Throop Staff Present: James W. Kzeski , Director Robert O'Brien, Fire Marshal Others Present: Kenneth Gruber On a motion by Mr. Jones, supported by Mr. Wilcox, the minutes of November 14, 1989, were approved. Motion carried. OLD BUSINESS: Appeal 89-004 not acted on. NEW BUSINESS: Appeal #89-006 Impression 5 Science Museum An application for .appeal was filed by Mr. R. Kenneth Gruber, Director, Impression 5 Science Museum. The Appeal requested that a portion of the first floor be designated as an R-1 occupancy as Building Board of Appeals December 12, 1989 Page 2 defined by Chapter 12 of the 1988 U.B.C. , for the purpose of sleeping approximately 75 children between the age of 8 and 13 years at the Impressions 5 Science Museum. See attached letter dated November 8, 1989. The entire museum is contained within a two story structure with exterior masonry walls and heavy timber roof and floor construc- tion. The principal use of this building is classified as A-2.1 . The Board completed a walk-through of the facilities to include the first floor. The proposed first floor sleeping area has two direct exits to the outside, operational sprinklers and a smoke detection system. The walls and ceilings are constructed of materials affording at least one-hour fire resistive construction. Mr. Gruber stated that all interior partitions within the sleeping area were to be removed to provide unobstructed vision to the two exterior exits. Mr. Jones moved to classify this space as an R-1 occupancy as defined by the 1988 Edition of the U.B.C. Mr. Jones further moved that the appeal be granted providing the following conditions were complied with : 1. Smoke detection system up-graded as required by the Fire Marshal . 2. No combustibles to be located in lower office area. 3. Bathroom on lower level shall be put back in service. 4. Campers are fully instructed on exit location and other safety precautions as maybe required by the Fire Marshal . 5. Inspection by the Fire Marshal to be completed on six month intervals. 6. East exit to be provided with vehicle barricades to prevent obstruction of exit door. 7. Adult supervision provided by Impression 5 Science Museum staff to be present and awake at all times. There was discussion concerning the R-1 occupancy designation as defined by the code. It was determined that R-1 did, in fact, most closely reflect the use of the proposed sleeping area. The motion was supported by Joe Wilcox. Motion carried unanimously. Meeting adjourned at 3:30 p.m. Re pectfully submitted, ' ames W. rzeski Secretary