Mayor Clark called the meeting to order at 7:08 PM.

ROLL CALL: Mayor Clark, Mayor Pro Tem Bononi, Council members Capello-absent/excused, Csordas, DeRoche, Landry, Lorenzo-absent/excused

1. Enter Executive Session for the purpose of discussing pending litigation

Nays: None

Council entered into Executive Session at 7:10 PM.

Council reconvened at 10:28 PM.

Mayor Clark commented that the Council had been in Executive Session since 7:10 PM for the purpose of discussing pending litigation and in particular the Sandstone litigation.

Mayor Clark asked Attorney Fisher to read the following proposed resolution:

On or about January 21, 1999, a judgment was entered in favor of Sandstone against the City of Novi pursuant to an Opinion and Order of the Oakland County Circuit Court in Civil Action Number 95-501532-CK ("Judgment"); on or about July 8, 1999, the Court amended the Judgment pursuant to an Opinion and Order entered on January 21, 1999 ("Amended Judgment"); on or about July 28, 1999, the City filed its’ Claim of Appeal of the Amended Judgment;

As of the present time, despite the City’s demands to its insurance providers, no insurance proceeds are available to apply to the Amended Judgment; although the City

is actively litigating in the Michigan Court of Appeals to contest the Amended Judgment, in view of the fact that interest is compounding annually on the Amended Judgment, and considering Sandstone’s demand for an immediate resolution, and recognizing the uncertainties of litigation, the City feels compelled to proceed now with this arrangement for the settlement of the litigation prior to the availability of insurance proceeds;

Risk exists with respect to the positions taken on appeal in this case, and the City wishes to resolve the dispute relative to the Amended Judgment which would contemplate that the appeal would be dismissed, and a methodology for the satisfaction of the compromise resolution and settlement of the Amended Judgment would be provided pursuant to this settlement without the necessity of issuing a so-called judgment assessment bond for the amount of the Amended Judgment, plus accrued interest and costs, that would materially increase the burden of the taxpayers of the City for years into the future.

The Council has discussed in several Executive Sessions the terms of settlement, including issues involving the so-called Land Advance of property on 12 Mile Road, issues involving the resolution of insurance claims, including correspondence to be written by the Mayor to ensure satisfaction of such claims, and issues involving the so-called Remaining PUD property at 13 Mile Road and Novi Road.

The City Council has discussed its risks in continuing the litigation with its appellate attorney, and has weighed these risks in terms of the potential burden upon the City, its citizens and its taxpayers based upon a continuation of the litigation and based upon entry into the settlement contemplated in this Resolution. The Council has concluded that the interests of the City, its citizens and its taxpayers would be decisively served by entering into the settlement.

NOW, THEREFORE, IT IS RESOLVED as follows:

1. All of the statements and actions referred to in the Recitations, above, are approved.

2. The accompanying Agreement for Entry of Consent Judgment, dated June 23, 2002, including all Exhibits ("Settlement") is hereby approved, and, the Mayor, City Clerk and City Attorney are authorized to execute the Settlement, including execution and entry of the Consent Judgment on behalf of the City, and, upon such entry of the Consent Judgment, all City officials are authorized to implement the settlement according to its terms.

3. Upon full execution of the Settlement by both parties, all actions are to be taken to terminate the litigation in all courts.

4. In recognition of the fact that the Settlement documents presented to Council represent the product of numerous hours of negotiations in the past several

days, the City Attorney, in consultation with the Mayor, shall be authorized to make corrections and revise language in order to achieve intended meanings and internal consistency in the Settlement documents, and further authorized to finalize language reconciliations in the Exhibits to the Agreement; provided, however, the substance of the documents shall not be altered.

There being no further business to come before Council, the meeting was adjourned at

10:34 PM.

_________________________________ ____________________________

Richard J. Clark, Mayor Maryanne Cornelius, City Clerk

Transcribed by: ____________________

Charlene McLean

Date approved: July 1, 2002