Councilmember Leeman announced the REO Town Commercial Assn. Mardi Gras to be held March 2, 2005 from 7:30 to 11:00 at the Cadillac Club at 1115 S. Washington Ave. They will have music, clowns and a costume contest. Tickets are $15.00, or $10.00 if your are in costume.

Councilmember Wood announced that Tuesday the HULL Neighborhood Association will meet at 5:30 P.M. at the North Network Center. Representatives of the Public Service Department will be on hand to talk about the paving of Theodore St. On March 2 the Eastside Neighborhood Organization will hold their meeting at 7:00 at the Foster Community Center. That same day at the Bingham St. School at 7:00 P.M. there will be a meeting to discuss the CSO project in the Hosmer, Eighth St., and Eureka St. area. This Thursday evening at 7:00 the Genesee Neighborhood Association will meet at the Grace Lutheran Church at 528 N. Martin Luther King Blvd.

Christine Timmon of 339 E. St. Joseph stated opposition to this ordinance amendment.

John Pollard of 1718 Blair St. spoke in opposition to this ordinance, saying that this is not enough people on this board. It would only take 2 people for a quorum, and no review board consisting of two people should have the authority to make determinations about someone's property tax rate.

Darnell Oldham, Sr. said that this board is too important to reduce it's membership to 3 members. Questions that Board members subject to in the appointment process are out of the ordinary. He came to this realization when he sat through an interview of a prospective Park Board member. Board members who serve in an voluntary capacity to the city should not be subject to these kinds of questions.

Mike Sears of 5810 Orchard Court stated his opposition to this ordinance.

Andrew Brodie of 1114 Glenn St. said he opposes this ordinance because your home is your most important possession. Reduction of the membership on this board down to 3 members would make it into a dictatorship. There should be 8 or 9 people on this board so that no 2 people can decide the fate of your property taxes.

Ken Prague, no address given, said that he is the former Assessor for the City of Potterville. He is a certified level 3 assessor and State Law allows cities to have up to 3/3 member boards of review, so it is perfectly all right and legal for the City of Lansing to go down to a 3 member board because each of board meets separately and cannot mix their votes with their colleagues.

David Tijerina, Assessor for the City of Lansing, said that the way the board of review is set up for the City is with 6 members that vote in groups of 3. The State passed a law in 1993 that allows for cities to have 3, 6, or 9 member boards of review. When State Law changed, the City of Lansing changed their ordinance. These boards meet in groups of 3. The reason the City wants to decrease in size to 3 members is because very few people file appeals anymore. In 1991 and 1992 the City reached a peak in property tax appeals and 2,000 people appealed their tax rate. Currently only about 300 appeals are filed each year. He estimates that they can hear all of the appeals that are filed using just one 3 member board.

ADOPTED AS ORDINANCE #1081

2. In consideration of Z-18-2004; 500 Block, South Side of E. Michigan Ave., Petition of Rezoning from "H" Light Industrial District to "G-1" Business District filed by City of Lansing, Department of Planning & Neighborhood Development to allow for development of the property for mixed uses

John Pollard of 1718 Blair stated his opposition to this rezoning petition. The mean income level in Lansing is $35,000. The majority of Lansing residents cannot afford the units that are proposed in this development.

Christine Timmon of 339 E. St. Joseph said that Lansing needs as many people living here as possible. She has no objection to upscale housing in Lansing. We are seen right now as a raggedy old city and people are leaving because of that image. Developments like this will improve our image. She could not afford this housing, but everyone has an opportunity to themselves into a position of being able to afford it. The City will get taxes from this development and people will be moving in to Lansing to live there. She supports anyone who wants to make Lansing look better. We are a Capital City and should take advantage of every opportunity to improve the way we look.

Frank S. Curtis X said the City does not need this development. No one is here to take advantage of it.

Gerald Rowley of 738740 N. Pennsylvania Ave. asked what arrangements will be made for parking at this site.

Andrew Brodie of 1114 Glenn St. stated his opposition to this project. People who do not pay property taxes are always willing to let other people who do pay property taxes pay higher property taxes.

Darnell Oldham of 3918 Berwick Dr. said this is an example of attempting to take property and put the revenue from it into a trust fund. It amounts to the Council trying to rob the millage trust fund to balance the budget. This Council must begin taking a closer look when developers come to them with grandiose ideas. This property is in a TIFA district and these tax dollars will not come back into the community. He does not get tax breaks on his property. His taxes keep going up. If this development is so upscale, the developers should pay full price for it. This project is not fair to the residents of the city.

REFERRED TO THE COMMITTEE ON DEVELOPMENT AND PLANNING

3. In consideration of Public Improvement III; 2004 New Sidewalk Project, P.S. #01075, Jolly Rd., new sidewalk for all lands fronting the north side of Jolly Rd. from Dunckel Rd. to Tranter St., Special Assessment Roll B-75

Stan Shuck of 818 Cooper said the City has to stop planning family and children play areas without planning some way to address pedestrian access to these areas. There is no sidewalk on Dunlap, Loa, MLK and Washington that leads to the Washington Park Ice Skating Rink. All of the sidewalks that lead to this park end at the Armory. Hawk Island Park is the same way. Similarly, there are no sidewalks to get to Arboretum Park, the Sycamore Golf Course, Aurelius Rd., Rex St., Ruth St. etc.

Belinda Fitzpatrick of 224 S. Holmes spoke in opposition to the sidewalk assessments.

Charlene Decker of 2711 Pleasant Grove spoke in opposition to the sidewalk assessments saying, the public is tired of being assessed fees and taxes. The City is not providing services for the taxes that residents pay. This is not the government's money, it is the residents money.

John Pollard of 1718 Blair described the City Council as radioactive. These sidewalk repairs are all at the site of a death involving pedestrian/automotive traffic. The assessments are outrageous. The City pays 1/3 of the cost and the resident pays the lion's share.

Don Randall of 5614 Martin Luther King, Jr. Blvd. said that over 40 years ago he put in a sidewalk next to his business. Today you cannot walk on either side of the sidewalk he put in, because there are no sidewalks there. There should be sidewalks along every major artery in the City. The building at Haag Rd. and MLK has no sidewalks. Pedestrians should be able to walk down to Jolly Rd. on either side of the street on a sidewalk. Sixty years ago the City plowed the sidewalks with a little tractor. This is something else the City should do along every major artery.

REFERRED TO THE COMMITTEE ON PUBLIC SERVICE

4. In consideration of Public Improvement III; 2004 New Sidewalk Project, P.S. #01075, Mercantile Way and Pierpont St., for all lands fronting Mercantile Way from Pierpont St. to the north end and Pierpont St. from Pennsylvania Ave. to the east end, Special Assessment Roll B-76

Mike Yaldoo of 6501 S. Pennsylvania Ave., said he is the owner of the Days Inn. He cannot pay this assessment. It would put him out of business.

REFERRED TO THE COMMITTEE ON PUBLIC SERVICE

5. In consideration of Public Improvement III; 2004 New Sidewalk Project P.S. #01075, Lake Lansing Rd. for all lands fronting Lake Lansing Rd. from Massachusetts Ave. to the east City Limits, Special Assessment Roll B-77

Lisa DeBoer, speaking on behalf of Lorraine White of 1206 Lake Lansing Rd., protested this special assessment. The property owner is her grandmother. They do not oppose installation of new sidewalks, but they do oppose the outrageous fee that is imposed on her grandmother for this improvement. They have been billed for almost $7,000. Mrs. White welcomed the widening of Lake Lansing Rd. She even allowed the construction companies to use her side yard for a staging area. Now she is being assessed a $7,000 fee for her trouble. She will lose more than ½ of her front yard between the widening of the road and the installation of sidewalks. She has family members who are in the concrete construction business that could do this job for less than ½ the price the City wants to charge her for it. The people who live in this area are mostly senior citizens and cannot come up with this kind of money. The City should develop a plan with other options for them.

Councilmember Leeman asked Ms. DeBoer and Mrs. White to speak to the Public Service Department representatives that are interviewing residents in the Council Conference Room directly behind City Council Chambers during the course of these public hearings. The City has Community Development Block Grant (CDBG) funds available to help, in certain situations, residents who cannot afford these assessments, but because of the way the system works an assessment notice must be sent out first.

Harold King of 1563 N. High St. said that these assessments are just too high. He sees young people out walking with their skateboards on Lake Lansing Rd. all the time. He asked if the CDBG funds referenced by Councilmember Leeman are forgivable loans or do they have to be paid back?

Darnell Oldham of 3819 Berwick Dr. asked how many senior citizens can afford to pay a $7,000 assessment fee. City Council gives hundreds of thousands of dollars, even millions of dollars away to developers, but when it comes to city residents it is a different story. Council has no concern for the every day citizen who pays taxes. An example in point is Dolores Nagel.

Kenneth Fry of 318 W. Pearl said he is from Potterville. He works part time at Louie's Barber Shop. He is here to speak on behalf of Buford Crittenden of 1144 Lake Lansing Rd. He opposes this special assessment. The cost per square foot does not compare to the benefit. Mrs. White's property is the same way. The City should have to show a specific benefit accrued to the property in order to assess these property owners. Other property owners have not been assessed.

REFERRED TO THE COMMITTEE ON PUBLIC SERVICE

Stan Shuck of 818 Cooper spoke regarding the snow event that occurred on February 20, 2005. He said that 2/3 of all of the City's truck drivers were not called to work. They called out the salt trucks rather than the plow trucks. The City put down so much salt that they ran out of it. There are trucks standing at the ready to make City streets and sky-walks safe for children, why were they not called out?

Dale Abronowitz of 1811 Sunset said that the city puts 24 million pounds of salt on the street every year and is exceeding safety limits for the use of salt. He suggested that the City make better use of the snow plows and use City Parks as sites for dumping the mountains of snow that are plowed during a snow event. The snow could be hauled to the park sites by dump truck.

Melissa Sue Robinson of 1121 E. Larned St. informed voters that the Odd Year City of Lansing Primary Election will be held August 2, 2005. The deadline for filing affidavits of identification and nominating petitions is May 10, 2005 at 4:00 P.M. She has already filed her affidavit of identity and statement of intent to seek office as a City Councilmember At Large. People of this City care about how their tax dollars are spent and how their elected officials take care of them.

Carl Calille of 2113 N. East St. spoke in support of the living wage ordinance. Many City employees do not currently earn this wage level. He would like to see the ordinance amended to include City of Lansing employees. He recited a list of sidewalks that border City owned property that he charges are not properly maintained when it comes to snow plowing. The properties he recited were all adjacent to city parking lots or parking ramps.

Harold King of 1563 N. High said he is at tonight's meeting to address the death of Chantelle Buchner. He has been attending committee meetings to se what is being done about the tragic death of this little girl. He complimented Councilmember Jeffries on the resolution he brought forth tonight. He likes to see work being done to help protect the City's children. We are losing children left and right, year after year. Two boys were killed in the North Town Neighborhood on Lake Lansing Road. Three girls were almost run down and one was killed. He asked why the members of the neighborhood association in those areas have not been in attendance at City Council meetings to demand action.

Ron Kruger of 3333 Moores River Drive said he has not been to a City Council meeting for 13 years. He was here 13 years ago talking about the City of Lansing salting policy. This policy is a travesty. Two weeks ago the City put out 12,000 tons of salt. For every ton of salt you put out you do $1,000 worth of damage. It would be much more cost effective for the City to appropriate funding to operate the snow plows.

John Pollard of 1718 Blair spoke about the snow plow policy and about the streetscape improvement and traffic control measures that have been installed on Moores River Drive where sidewalks are missing but residents have to contend with speed bumps and the traffic circles that were installed. He demanded that Council amend their rules to bring rule 19 into conformance with rule 16. He accused Councilmembers of violating the City Charter. He urged the City to make an acceptable offer to Dolores Nagel.

Darnell Oldham of 3819 Berwick Dr. demanded that someone from the Public Service Department come out and inspect his neighborhood that has not been plowed, sanded or, salted once. He declared that he will not shovel his sidewalks unless the City plows his street. He urged the City Council to settle with the UAW. He said the City Council is 2 years and 15 days out of compliance with their own rules. He said he wants the City to settle out of court with Dolores Nagel who is being unjustly treated. He urged Councilmembers to remember the Edward Swans lawsuit where it cost the City $13,000,000 to settle a case they could have settled for $4,000,000.

Frank S. Curtis X, no address given, said that he went to see Louis Farrakhan in the Million Man March. He urged Councilmembers to stop in and visit at the South Side Coalition.

Russell Terry of 121 E. Mt. Hope said that he needs more than three minutes to speak. He said that he has only paid ½ of his property taxes for the past three years as part of a review process. He will be appealing his property taxes this year and feels that the Assessor's Office may see more appeals than they project. He spoke regarding the quality of telephones and telephone services. He said that during a recent vacation to Canada he witnessed the marriage of a same sex couple that were divorced 2 weeks later.

Belinda Fitzpatrick of 224 S. Holmes said that it should have been obvious to everyone listening that her comments during public hearing were related to sidewalks because of the child that was recently killed. She reminded Councilmembers that Mr. Behan has been coming to City Council meetings week after week pleading for Council to order an audit of the Board of Water and Light. Councilmembers should be aware that what he is doing is establishing a public record about violations at the BW&L so that he can win a large monetary award in court because Council has failed to act. As an owner of the BW&L, she believes that an outside audit would be a good idea. This lawyer is coming to these meetings and setting City Councilmembers up. They should just order the outside audit to protect themselves.

Andy Marchovic, no address given, requested amendment to the towing ordinance to open up the business of non-consensual tows performed by the Lansing Police Department so that other companies are eligible to participate. Currently only two big companies in Lansing are getting this business. There are a lot of smaller companies that want to be on this call list. Two of the four original companies that were originally on the non-consensual tow call list have been taken off.

Charlene Decker of 2711 Pleasant Grove Rd. criticized Councilmembers for failing to adopt the rule amendment that was on the agenda last week. She declared that voters will hold Councilmembers responsible for their vote on this issue. She asked why the City has not moved forward on the South Side Community Center. Six hundred thousand dollars had been set aside for that project, where is it? She urged Council to be fair with Dolores Nagel, who she said is still being ripped off by the City.

Christine Timmon of 339 E. St. Joseph said that she got a call last week from a resident of Holt who blamed her for what is said at the podium during public comment. She said that she understand what is going on behind the scenes that make Councilmembers feel as if they have the right to get up and leave the dais during council meetings. She stated her opposition to "quasi political action groups" having access to CDBG funds to fund their activities. She agrees with previous speakers that the City has not treated Dolores Nagel well. What the City is doing to her is wrong and she urges Council to resolve this issue before it goes to court.

Mike Sears of 5810 Orchard said he has $20 that he wants to donate to the Buchner family. He advocated a City approved memorial to Malcolm X. He suggested that Moores River Drive be named after him. He said that the money the City gives investors and developers in the form of tax abatements should be given instead to first time home buyers and senior citizens who need help with sidewalk assessments. He urged Council to approve the Living Wage Ordinance.

Patricia Lone of 1807 Georgetown Blvd. said this is the first City Council meeting she has ever attended. She was compelled to come down tonight after watching the February 14, 2005 City Council meeting during which she heard Councilmember Smith say something that offended her. The language that she used seemed far worse coming in the setting of a local government meeting than it might have seemed in a different setting. She stated that he phoned Councilmember Smith and asked for an apology for taking the Lord's name in vain during a City Council meeting, but Councilmember Smith brushed her off. She knows other Christians, as well as members or other beliefs, that were also offended by Councilmember Smith's language. She demanded an apology. City Councilmembers, she said, are supposed to be leaders of the community, and the type of language that was used at the February 14 meeting was totally inappropriate. The name that was used by Councilmember Smith is supposed to be reserved and used only in reverence. There are even state laws that outlaw the use of that kind of language.

Kenneth Fry of 318 W. Pearl St. said that the City is charging too much for the sidewalk assessments.

Gerald Rowly of 1717 Pennsylvania Ave. displayed a container of dirty water and demanded that the lead pipe water service to his home be ripped out and replaced. He claimed that the salt that is being put on the streets during snow events is leaching into his water through the lead pipe service.

WHEREAS, J. W. Sexton High School is a four-year comprehensive urban high school serving approximately 1200 students in Lansing that chose "High Schools That Work" as its school reform model in June, 2002; and

WHEREAS, "High Schools That Work' is a researched-based whole school reform model with an established record of improving the way high school students are prepared for further education and work by providing a challenging academic core to all students, offering high-quality career and technical programs, and engaging students and parents in a strong guidance program; and

WHEREAS, Sexton High School was organized into a school improvement team and four focus teams -- Curriculum and Standards, Instruction and Assessment, School Climate, and Guidance and Public Instruction -- were formed with all stakeholders involved;

WHEREAS, Sexton High School accomplished major achievements in short time span -- a composite "B" grade on Michigan's first-ever Education Yes School Report Card, and received an "A" on the indicators of school performance and continues to aggressively approach the teaching of science and mathematics to improve students' comprehension and achievement as part of its overall effort to increase standards and expectations; and

WHEREAS, Sexton High School's ninth-grade retention rate has increased by 2/3, tardiness has been reduced by "thousands," and attendance has dramatically improved;

NOW, THEREFORE, BE IT RESOLVED that the Lansing City Council, hereby, applauds the efforts of J. W. Sexton High School "High Schools That Work" that has made a remarkable difference to advance student achievement and to personalize each student's education.

By Councilmember Smith

Carried Unanimously

WHEREAS, the Mayor has requested the appointment of Maria Garcia, 2824 LaSalle Gardens, to fill a vacant At-Large position on the Cable Advisory Board with a term to expire on June 30, 2008; and

WHEREAS, the Committee on General Services on February 23, 2005, recommended confirmation of this appointment;

NOW, THEREFORE, BE IT RESOLVED, that the Lansing City Council hereby confirms the Mayor's appointment of Maria Garcia, 2824 LaSalle Gardens, to an At-Large position on the Cable Advisory Board for a term to expire on June 30, 2008.

COUNCILMEMBER SMITH'S MOTION TO PLACE AN AFFIRMATIVE ROLL ON THE RESOLUTION WAS ADOPTED BY THE FOLLOWING VOTE:

YEAS: 5

NAYS: 1(Councilmember Wood absent for the vote on this item)

ABSENT: 2 (Councilmembers Bauer and Meyer)

WHEREAS, the City of Lansing funds for community cablecasting activities covering calendar year 2004-2005 amounts to $8,600; and

WHEREAS, the Telecommunication and Cable Advisory Board has evaluated fourteen (14) grant applications from community programmers and recommended that twelve (12) applicants receive funding totaling $7,659.80, with a reserve of $940.20; and

WHEREAS, the Committee on Ways and Means reviewed the Board's recommendations, and concurs on the availability of funds; and

WHEREAS, the Committee on General Services has review the Board's recommendations, and concurs with the list of recommended grants; and

WHEREAS, the grant contract will be revised to include a provision that all recipients shall abide by the rules and regulations required of grant recipients; and

NOW, THEREFORE, BE IT RESOLVED the Lansing City Council hereby approves the grant allocations to producers of community programs according to the attached list, as recommended by the Telecommunications and Cable Advisory Board; and

BE IT FURTHER RESOLVED that Council Staff is authorized to make a bulk purchase of videotape, and allocate tape to applicants in amounts specified on the attached summary; and

BE IT FURTHER RESOLVED that all grant recipients will sign a contract and abide by the rules thereof; and

BE IT FINALLY RESOLVED that the total reserve from this fund be placed in an account for outside consultants to assist with franchise negotiations between the City and Comcast.

By Councilmember Smith

Carried Unanimously

WHEREAS, the Mayor has requested the appointment of Shirley Rogers, 131 East Jolly Road, to the Public Service Board for a term to expire on June 30, 2008; and

WHEREAS, the Committee on Public Services on February 23, 2005, recommended confirmation of this appointment;

NOW, THEREFORE, BE IT RESOLVED, that the Lansing City Council hereby confirms the Mayor's appointment of Shirley Rogers, 131 East Jolly Road, to the At-Large position on the Public Service Board for a term to expire on June 30, 2008.

By Councilmember Wood

To accept a substitute for the resolution originally contained in the City Council packet and to place an affirmative roll on the substitute resolution

Carried Unanimously

(Approval of a mini-grant to Parks for special swimming sessions for middle school students. The Parks and Recreation Department will partner with Lansing School District (LSD) to provide a Girls and Boys Swim Team and Guard Start program for students in the District grades 6,7, and 8. A competitive swim team season will be conducted at four local schools, followed by five (5) two-week sessions of daily swims and educational activities. A soft-match mini-grant was received from the Michigan Recreation and Park Association; the soft match is met by $2,638 in-kind covered costs including the guard instructor, bus transportation, and a small administrative fee.)

(Approval of donations to Police from the Capital Area United Way organization for the CARE program. The Capital Area Response Effort (CARE) program provides counseling and other special assistance to domestic violence victims in the Lansing area and neighboring communities.)

(Approval of State Infrastructure Bank (SIB) loan assistance to Public Service for the $4.7 million reconstruction of the Pennsylvania Avenue Bridge).

WHEREAS, the State of Michigan Water Resources Commission has issued a Wastewater Treatment Facilities National Pollutant Discharge Elimination System Permit No. MI 0023400 (the "NPDES Permit") requiring the City of Lansing (the "City") to develop a final Combined Sewer Overflow Control Program (the "CSO Control Program") to be submitted to the State of Michigan acting through its Department of Natural Resources (subsequently restructured and renamed the Department of Environmental Quality and collectively hereafter referred to as the "DEQ") for approval; and

WHEREAS, by a letter dated March 9, 1992 to the City Clerk, DEQ, acting through its Supervisor of the Surface Water Quality Division, has approved the CSO Control Program submitted by the City in compliance with the NPDES Permit; and

WHEREAS, Act 320, Public Acts of Michigan, 1927, as amended, repealed and recodified by Part 43 of Act 451, Public Acts of Michigan 1994 ("Act 451") enables a city to issue and sell bonds to finance construction of improvements required by a permit issued by the State of Michigan Water Resources Commission; and

WHEREAS, the City Council has stated its intention to authorize the issuance of limited tax general obligation bonds in one or more series pursuant to Act 451 in an amount not to exceed Eighteen million Dollars ($18,000,000) for the purpose of financing the 018 North-Part A/018 North-Part B improvements and necessary wastewater treatment plant improvements (the "Improvements"), included in Phase IV, Segment 2 of the Combined Sewer Overflow Improvements Project Plan required by the NPDES Permit; and

WHEREAS, plans and specifications for the Improvements have been prepared by the City's consulting engineers and submitted for approval by the DEQ; and

WHEREAS, the City Council previously approved a Notice of Intent to Issue Bonds for Public Service Department Combined Sewer Overflow Project Resolution (the "Notice"), which, in compliance with the requirements of Section 5(g) of the Home Rule Cities Act, Act 279, Public Acts of Michigan, 1909, as amended ("Act 279"), required the City Clerk to cause to be published, on Friday, December 17, 2004, in the Lansing State Journal, an official notice to electors and taxpayers of the City of Lansing of intent to issue bonds (the "Notice of Intent") which describes the bonds to be issued to finance construction of the Improvements; and

WHEREAS, Act 34 of the Public Acts of Michigan, 2001, as amended, permits a municipality to authorize, within limitations which shall be contained in the authorization resolution of the governing body, an authorized officer to sell and deliver and receive payment for obligations, and to approve interest rates or methods for fixing interest rates, prices, discounts, maturities, principal amounts, denominations dates of issuance, interest payment dates, redemption rights, place of delivery and payment, and other matters and procedures necessary to complete the authorized transaction;

NOW, THEREFORE, PROVIDED THAT NO PETITION IS RECEIVED BY THE CITY PURSUANT TO THE NOTICE AND SECTION 5(G) OF ACT 279, IT IS HEREBY RESOLVED THAT:

1. The Improvements. Pursuant to the CSO Control Program approved by DEQ in accordance with the NPDES Permit, the City shall acquire and construct the Improvements. The estimated period of usefulness of the Improvements is not less than forty (40) years.

2. Authorized Officers. The term "Authorized Officer" as used in this Resolution shall refer to any one of the following city officers: the Finance Director, the Director of Public Service, the Mayor, or the City Clerk.

3. Authorization of Bond Issuance. A bond of the City designated Combined Sewer Overflow Limited Tax General Obligation Bond (Phase IV, Segment 2) Series 2005 (the "Bond"), with such changes in name as may be deemed appropriate by an Authorized Officer so long as such changes are not misleading, is authorized to be issued for the purpose of paying a portion of the costs of the Improvements, including costs incidental to the issuance, sale and delivery of the Bond. In the event the Bond is to be issued simultaneously with another bond being issued to the Authority for similar improvements under the CSO Control Program, each Authorized Officer is authorized to have prepared a single bond and related documentation evidencing the obligation approved under this resolution and any other similar resolution of the City Council, in an aggregate maximum principal amount not to exceed the maximum principal amount authorized under this resolution and such other resolution of the City Council.

4. Bond Details. The Bond shall be issued in the aggregate principal sum not to exceed Fifteen million Dollars ($15,000,000) or such lesser amount as shall be determined by an Authorized Officer at the time of sale (the "Principal Amount") and approved by the DEQ and the Michigan Municipal Bond Authority (the "Authority"), pursuant to the Notice of Intent.

The Bond shall be issued in substantially the form of Appendix A, with such modifications as may be necessary to reflect changes in Bond terms or details determined by an Authorized Officer at or prior to the time of sale pursuant to authority granted by this Resolution. The Authorized Officer shall have the authority to make such changes in the form of Bond as shall be requested by the Authority, deemed reasonable by an Authorized Officer and not in conflict with the law or provisions of this Resolution. The Bond shall be in the form of a single fully-registered, nonconvertible, non-chargeable Bond of the denomination of the Principal Amount, dated as of the date of delivery of the Bond, or such other date as may be determined by an Authorized Officer at the time of sale of the Bond and approved by the DEQ and the Authority.

The Bond shall be payable in serial principal installments on October 1 of each year beginning October 1, 2006, or on such other dates as may be determined by an Authorized Officer at the time of sale of the Bond and approved by the DEQ and the Authority. The schedule of serial principal installments shall be determined by an Authorized Officer at the time of sale of the Bond and approved by DEQ and the Authority. Interest on the Bond will be payable as provided under Section 5, on April 1, 2005, and semiannually thereafter on April 1 of and October 1 of each year until maturity or earlier prepayment of said installment, or on such other dates as determined by an Authorized Officer at the time of the sale of the Bond and approved by the DEQ and the Authority.

The Bond or serial principal installments thereof will be subject to prepayment prior to maturity in the manner and at the times as provided in the form of Bond contained in this Resolution or as determined by an Authorized Officer at the time of sale of the Bond and approved by the DEQ and the Authority.

Final determination of certain Bond details, including the Principal Amount and the dates and amounts of principal installments, shall be evidenced by execution of the purchase contract to be executed between the City and the Authority as described below.

5. Sale of Bond, Calculation of Repayment Obligations. The City shall sell the Bond to the Authority at par value and at an interest rate of not to exceed one and five eighths percent (1.625%) per annum. The Bond shall be delivered in accordance with the delivery instructions of the Authority.

Proceeds of the sale of the Bond shall not be received in one lump sum. Rather, the Authority shall purchase principal installments of the Bond (the "Purchased Principal Installments") from the Authority as such purchases are approved by the DEQ. These Purchased Principal Installments shall be deemed to correspond to the serial principal installments contained in the Bond in direct chronological order of said serial principal installments. The City shall have no obligation to repay any serial principal installments for which the City did not receive proceeds from corresponding Purchased Principal Installments of at least a like amount.

Interest on the Bond shall only accrue on the purchased installments, and shall accrue based on the amount of and purchase date of such installments. In the event less than the Principal Amount of the Bond is purchased by the Authority, any portion of the Principal Amount is prepaid as provided below, or any serial principal payment becomes due before the City has received proceeds from corresponding Purchased Principal Installments of at least a like amount, then the Authority may prepare a new serial principal installment repayment schedule acceptable to the City.

6. Bond Register, Record of Payments. The Bond shall be registered on the bond register maintained by the finance director. The finance director shall record on the bond register payment by the City of each installment of principal or interest or both when made and the canceled checks or other records evidencing such payments shall be returned to and retained by the finance director and shall be conclusive evidence of such payments and the obligation of the City with respect to such payments shall be discharged to the extent of such payments

Upon payment by the City of all outstanding principal of and interest on the Bond, the Authority shall deliver the Bond to the City for cancellation

7. Execution and Delivery. The Bond shall be executed in the name of the City with the manual or facsimile signatures of the Mayor and the Clerk of the City (provided that at least one of the signatures on the Bond shall be a manual signature) and shall have the seal of the City, or a facsimile thereof, printed or impressed on the Bond. After execution, the Bond shall be delivered to the Authority by the finance director or his designee.

8. LTGO Nature of Bond. The Bond is anticipated to be paid from funds lawfully available to the City for this purpose such as revenues derived from the operation of the City's sewage disposal system, and ad valorem taxes pursuant to a pledge of the City's limited tax full faith and credit. The Bond shall be a limited tax general obligation of the City. As such, it shall be payable as a first budget obligation from the general fund of the City and from taxes imposed on all taxable property in the City, subject to applicable constitutional, statutory and charter tax rate limitations. Commencing with the year 2005, there shall be levied upon the tax rolls of the City in the manner required by law, an amount such that the estimated collection therefrom will be sufficient to promptly pay, when due, the principal of and interest on the Bond becoming due prior to the next annual tax levy; provided, however, that if at the time of making any such annual tax levy there shall be other monies to make the required payments on the Bond, then the City shall take such monies into account in determining such annual levy.

9. Debt Retirement Payments. The Finance Director is authorized and directed to open a separate depositary account with a bank or trust company to be designated CSO Debt Retirement Fund (the "Debt Retirement Fund"), the moneys to be deposited into the Debt Retirement Fund to be specifically earmarked and used solely for the purpose of paying principal of and interest on the Bond and additional future series of bonds issued by the City for the purposes of completing construction of the Improvements as such principal and interest become due. The Finance Director is further authorized and directed to pay, or cause to be paid, from the Debit Retirement Fund or other available funds, all payments of principal, if any, and interest on the Bond to the Authority's depository, or in the event the Authority is no longer the owner of the Bond, to the owner of the Bond, in accordance with the requirements of the Bond.

10. Construction Fund. The proceeds of the Bond and the prior series of bonds issued by the City for the purposes of completing construction of the Improvements and no other moneys shall be deposited in a fund designated as the CSO Limited Tax General Obligation Bond Construction Fund (the "Construction Fund"). Said moneys shall be used solely for the purposes for which the Bond, and other bonds issued for the CSO Control Program, are issued. Any unexpended balance of the proceeds of the sale of the Bond remaining after completion of the Improvements herein authorized may be used at the discretion of the Director of Public Service for further Improvements included in the CSO Control Program required by the NPDES Permit. Any remaining balance after such expenditure shall be used for the prepayment of installments of the Bond or the purchase of installments of the Bond at not more than the fair market value thereof.

The appropriation of moneys for "eligible" (not to exceed the maximum Principal Amount of the bond) and "ineligible" costs of the Improvements (as those terms are defined by the Authority and DEQ) is hereby approved. Said moneys shall be used solely for the purposes of making Improvements included in the CSO Control Program required by the NPDES Permit, and ancillary related expenses. After completion of the Improvements and disposition of remaining proceeds, if any, of the Bond pursuant to the provisions of this section, the construction fund may be closed.

11. Mutilated, Lost, Stolen or Destroyed Bonds. In the event any Bond is mutilated, lost, stolen or destroyed, the Mayor and the City Clerk may, on behalf of the City, execute and deliver a new Bond having a number not then outstanding, of like date, maturity and denomination as that mutilated, lost, stolen or destroyed. In the case of a mutilated Bond, a replacement Bond shall not be delivered unless and until such mutilated Bond is surrendered to the City.

In the case of a lost, stolen or destroyed Bond a replacement Bond shall not be delivered unless and until the City shall have received such proof of ownership and loss and indemnity as they determine to be sufficient, which shall consist at least of (i) a lost instrument Bond for principal and interest remaining unpaid on the lost, stolen or destroyed Bond; (ii) an affidavit of the registered owner (or his or her attorney) setting forth ownership of the Bond lost, stolen or destroyed and the circumstances under which it was lost, stolen or destroyed; (iii) the agreement of the owner of the Bond (or his or her attorney) to fully indemnify the city against loss due to the lost, stolen or destroyed Bond and the issuance of any replacement bond in connection therewith; and (iv) the agreement of the owner of the Bond (or his or her attorney) to pay all expenses of the City in connection with the replacement, including the transfer and exchange costs which otherwise would be paid by the City.

12. Arbitrage and Tax Covenants. The City hereby covenants that, to the extent permitted by law, it shall take all actions within its control necessary to maintain the exclusion of the interest on the Bond from adjusted gross income for general federal income tax purposes under the Internal Revenue Code of 1986, as amended (the "Code"), including but not limited to, actions relating to the rebate of arbitrage earnings, if applicable, and the expenditure and investment of Bond proceeds and moneys deemed to be Bond proceeds.

13. Approval of Documents. The proposed form of Purchase Contract between the City and the Authority (the "Purchase Contract"), the proposed form of issuer's certificate to be executed by the City and the proposed form of Supplemental Agreement among the City, the Authority and the DEQ (the "Supplemental Agreement") on file with the City Clerk are hereby approved. The Authorized Officers are hereby jointly or severally authorized to execute and deliver the Purchase Contract, the Issuer's Certificate, and the Supplemental Agreement upon completion, in the forms approved hereby with such revisions as they may determine to be necessary or desirable, permitted by law, and not materially adverse to the City.

14. General Authority for Authorized Officers. The Authorized Officers are hereby jointly or severally authorized to take any actions necessary to comply with requirements of the Authority and DEQ in connection with sale of the Bond to the Authority, and modification of the 1996 Bond as set forth above, including the administrative appropriation and transfer of funds related to the Bonds. The Authorized Officers are hereby jointly or severally authorized to execute and deliver such other certificates, documents, instruments, and other papers as may be required by the Authority or DEQ or as may be otherwise necessary or convenient to effect the delivery of the Bond as set forth above.

15. Conflicting Resolutions. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution are rescinded.

By Councilmember Williams

Councilmember Wood stated, for the record, that she will vote no on this resolution, and further that until the 1.8 Million Dollar issue in the City Budget has been dealt with by the City Council, she will continue to vote no on all budgetary issues of the City.

YEAS: 5

NAYS: 1 (Councilmember Wood dissenting)

ABSENT: 2 (Councilmembers Bauer and Meyer)

The CITY OF LANSING, Counties of Ingham and Eaton, State of Michigan (the "City"), acknowledges itself to owe and for value received hereby promises to pay to the Michigan Municipal Bond Authority (the "Authority") the sum of Fifteen Million,_ Dollars ($15,000,000) (the "Principal Amount") or so much thereof as shall have been advanced to the City pursuant to a Purchase Contract between the City and the Authority, and a Supplemental Agreement by and among the City, the Authority and the State of Michigan acting through the Department of Environmental Quality. During the time funds are being drawn down by the City under this Bond, the Authority will periodically provide the City with a statement showing the amount of principal that has been advanced and the date of each advance, which statement shall constitute prima facie evidence of the reported information; provided, that no failure on the part of the Authority to provide such a statement or to reflect a disbursement or the correct amount of a disbursement shall relieve the City of its obligation to repay the outstanding principal amount actually advanced, all accrued interest thereon, and any other amount payable with respect thereto in accordance with the terms of this Bond. The Principal Amount shall be payable on the dates and in the serial principal installment amounts set forth in Schedule A attached hereto and made a part hereof. Interest on the Bond shall accrue only on installments of the Principal Amount which have been purchased by the Authority, and shall accrue from the date each said installment is delivered to the City until repaid by the City at the rate of one and five-eighths percent (1.625%) per annum, payable on October 1, 2005, and semiannually thereafter. Principal is first payable October 1, 2006 and annually thereafter. In the event less than the Principal Amount of the Bond is purchased by the Authority, any portion of the Principal Amount is prepaid as provided below, or any serial principal payment becomes due before the City has received proceeds from corresponding purchased principal installments of at least a like amount, then the Authority may prepare a new serial principal installment repayment schedule which shall be presented to the City and be effective upon receipt as provided in the Purchase Contract.

Notwithstanding any other provision of this Bond, so long as the Authority is the owner of this Bond, (a) this Bond is payable as to principal, redemption premium, if any, and interest at Bank One Trust Company, N.A., or at such other place as shall be designated in writing to the City by the Authority (the "Authority's Depository"); (b) the City agrees that it will deposit with the Authority's Depository payments of the principal of, and redemption premium, if any, and interest on this Bond in immediately available funds by 12:00 noon at least five business days prior to the date on which any such payment is due whether by maturity, redemption or otherwise, in the event that the Authority's Depository has not received the City's deposit by 12:00 noon on the scheduled day, the City shall immediately pay to the Authority as invoiced by the Authority an amount to recover the Authority's administrative costs and lost investment earnings attributable to that late payment; and (c) written notice of any redemption of this Bond shall be given by the City and received by the Authority's Depository at least 40 days prior to the date on which such redemption is to be made.

In the event of a default in the payment of principal or interest hereon when due, whether at maturity, by redemption or otherwise, the amount of such default shall bear interest (the "additional interest") at a rate equal to the rate of interest which is two percent above the Authority's cost of providing funds (as determined by the Authority) to make payment on the bonds of the Authority issued to provide funds to purchase this Bond but in no event in excess of the maximum rate of interest permitted by law. The additional interest shall continue to accrue until the Authority has been fully reimbursed for all costs incurred by the Authority (as determined by the Authority) as a consequence of the City's default. Such additional interest shall be payable on the interest payment date following demand of the Authority. In the event that (for reasons other than the default in the payment of any municipal obligation purchased by the Authority) the investment of amounts in the reserved amount established by the Authority for the bonds of the Authority issued to provide funds to purchase this Bond fails to provide sufficient available funds (together with any other funds which may be made available for such purpose) to pay the interest on outstanding bonds of the Authority issued to fund such account, the City shall and hereby agrees to pay on demand only the City's pro rata share (as determined by the Authority) of such deficiency as additional interest on this Bond.

This Bond is a single, fully-registered, non-convertible bond in the principal sum indicated above issued for the purpose of constructing Improvements pursuant to the State of Michigan Water Resources Commission Wastewater Treatment Facilities National Pollutant Discharge Elimination System Permit No. MI 0023400 as now in force or as hereafter revised. This Bond is issued under the provisions of Act 320, Public Acts of Michigan, 1927, as amended, repealed and recodified by Act 451, Public Acts of Michigan, 1994, as amended, and a resolution duly adopted by the City Council. This Bond is a limited tax general obligation of the City, payable as a first budget obligation from the general fund of the City, and other funds lawfully available to the City for this purpose, including revenues derived from the operation of the City's sewage disposal system and, if necessary, from taxes imposed on all taxable property in the City, subject to applicable constitutional, statutory and charter tax rate limitations.

This Bond is subject to redemption by the City prior to maturity only with the prior written consent of the Authority and on such terms as may be required by the Authority.

This Bond shall be registered as to principal and interest on the books of the City kept by the Finance Director and may be transferred only upon surrender of this Bond by the registered owner of record in person, or by registered owner's attorney duly authorized in writing, to the Finance Director together with a written instrument of transfer satisfactory to the Finance Director duly executed by the registered owner or the registered owner's attorney duly authorized in writing, and thereupon a new registered bond in the same aggregate principal amount and of the same maturity shall be issued to the transferee in exchange therefor.

This Bond is payable out of the City's Debt Retirement Fund for this issue, and it is hereby certified and recited that all acts, conditions and things required by law to be done, precedent to and in the issuance of this Bond exist and have been done and performed in regular and due form and time as required by law, and that the total indebtedness of the City, including this Bond, does not exceed any constitutional, statutory or charter debt limitation.

IN WITNESS WHEREOF, the City, by its City Council, has caused this Bond to be signed in the name of the City by the manual signatures of its Mayor and Clerk and its corporate seal or a facsimile thereof to be impressed hereon, all as of _____________, 2005.

CITY OF LANSING

Counties of Ingham and Eaton

State of Michigan

By:____________________

Tony Benavides

Its Mayor

(SEAL)

Countersigned

By:_________________

Debbie Miner

City Clerk

APPROVED AS TO FORM

________________

City Attorney

The following payment schedule indicates repayment by the City of Principal Amount due on this Bond. Repayment of the Principal Amount shall be made according to this schedule until the full Principal Amount disbursed to the City is repaid; provided, however, that the City shall have no obligation to repay any serial principal installment for which the City did not receive a disbursement of Principal Amount by the date such serial principal installment is due. In such an event, and in the event that less than the principal amount set forth below is disbursed by the Authority to the City, or in the event of prepayment of the Bond, the Authority shall prepare a new payment schedule which shall be effective upon receipt by the City.