February 8, 1999

A regular meeting of the City Council was held on Monday, February 8, 1999, at 7:00 p.m. in the Council Chambers of City Hall. Mayor Black presided. The Pledge of Allegiance to the Flag was recited in unison.

Councilmen present: Drummond Black, John Coppage, John Moolenaar, John Tysse, Marty Wazbinski

Councilmen absent: None

Minutes Approval of the minutes of the January 25, 1999 regular meeting and January 18, February 1 and February 3, 1999 special meetings was offered by Councilman Coppage and seconded by Councilman Moolenaar. (Motion adopted.)

Proclamation - Judge Henry Hart Judge John Hart appeared before Council to announce that his father, the Honorable Judge Henry Hart, is the recipient of a Michigan Legal Milestone award for his work on the uniform placement of yellow "No Passing" signs. The Legal Milestone program, administered by the State Bar, recognizes significant legal cases, events and personalities in Michigan’s legal history. The following resolution was offered by Councilman Wazbinski and seconded by Councilman Tysse:

RESOLVED, that the Mayor is authorized to issue the attached Proclamation of Recognition to the Honorable Judge Henry Hart, who will be presented with a Michigan Legal Milestone in June 1999 for his work on the uniform placement of "No Passing" signage on the left side of the roadway. (Motion adopted.) Mayor Black presented a Proclamation of Recognition to the Honorable Judge Henry Hart in recognition of the award he will receive in June of this year.

98-99 Budget Amendment Robert Fisher, Director of Fiscal Services, gave an overview of an amendment to the 1998-99 General Fund Budget for approval of payment for contracted legal and appraisal fees. A public hearing was opened at 7:28 p.m. Duane Marsh, 4804 Oakridge Drive and President of the Midland Area Chamber of Commerce, read a Statement and Request of Clarification letter from the Midland Area Chamber of Commerce. Karl Tomion, City Manager, responded to each statement. The public hearing closed at 7:50 p.m. The following resolution was then offered by Councilman Wazbinski and seconded by Councilman Coppage:

WHEREAS, the 1998-99 General Fund budget, as adopted, includes appropriations for legal services of $100,000 and appraisal services of $150,000 in connection with the City of Midland’s defense of tax appeals filed by The Dow Chemical Company; and

WHEREAS, said budget, as adopted, also includes appropriations for legal services of $120,000 and appraisal services of $135,000 in connection with the City’s defense of tax appeals filed by Dow Corning Corporation; and

WHEREAS, budgetary transfers approved by the City Council on December 21, 1998, increased the aforementioned appropriations for appraisal services for the Dow Chemical Company appeals by $127,157 and for appraisal services for the Dow Corning Corporation appeals by $120,183; and

WHEREAS, the cost of legal and appraisal services in said assessment appeals has exceeded that which was anticipated and, as such, an additional appropriation of $2,487,500 is required to fund the defense of these appeals during the remainder of the 1998-99 fiscal year; and

WHEREAS, sufficient funding for this purpose exists in the Unreserved Fund Balance account of the General Fund; and

WHEREAS, in accord with Section 5.11, 11.4 and 11.6 of the Charter of the City of Midland, and after having given proper legal notice, and having conducted a public hearing Monday, February 8, 1999, on the proposal to amend the 1998-99 General Fund budget to increase expenditures for defense of the tax appeals by The Dow Chemical Company and Dow Corning Corporation; now therefore

(Motion adopted.)

Payment - Contracted Legal Services    The following resolution was offered by Councilman Moolenaar and seconded by Councilman Coppage:

WHEREAS, the Dow Corning Corporation appealed the 1996, 1997 and 1998 assessment and taxable value of certain property it owns located in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, The Dow Chemical Company appealed the 1997 and 1998 assessment and taxable value of certain property it owns in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, the law firm of Miller, Canfield, Paddock and Stone has been retained to assist the City in its defense of the aforementioned assessment appeals; and

WHEREAS, on December 21, 1998, the City Council authorized payment to said law firm for its services in the assessment appeals in a total amount not to exceed $360,725; and

WHEREAS, the cost of the legal defense of the assessment appeals will exceed that which has thus far been authorized for payment and, as such, an additional appropriation is required for payment of services rendered by said firm; now therefore

RESOLVED, that payment to the law firm of Miller, Canfield, Paddock and Stone for continued legal services in the aforementioned defense of the Dow Corning Corporation and The Dow Chemical Company assessment appeals is hereby authorized in an amount not to exceed $910,725. (Motion adopted.)

Payment - Contracted Appraisal Services    The following resolution was offered by Councilman Coppage and seconded by Councilman Wazbinski:

WHEREAS, the Dow Corning Corporation appealed the 1996, 1997 and 1998 assessment and taxable value of certain property it owns located in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, The Dow Chemical Company appealed the 1997 and 1998 assessment and taxable value of certain property it owns in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, the appraisal firms of Max Derbes & Associates and Baker & O’Brien have been retained by the City of Midland to provide appraisal reports of the aforementioned properties; and

WHEREAS, on December 21, 1998, the City Council authorized payment to said appraisal firms for their services in the Dow Corning Corporation and The Dow Chemical Company assessment appeals in a total amount not to exceed $886,696; and

WHEREAS, the cost of the appraisals will exceed that which has thus far been authorized for payment and, as such, an additional appropriation is required for payment of services to be rendered by said firms; now therefore

RESOLVED, that payment to the appraisal firms of Max Derbes & Associates and Baker & O’Brien for appraisal services in connection with the aforementioned defense of the Dow Corning Corporation and The Dow Chemical Company assessment appeal is hereby authorized in an amount not to exceed $2,824,196.00. (Motion adopted.)

1999-2000 Budget Priorities Robert Fisher, Director of Fiscal Services, reviewed the proposed City Council’s Budget Priorities for the 1999-2000 fiscal year. The following public hearings were then held:

Proposed Dial-A-Ride Fare Increases:

A public hearing opened at 8:04 p.m. Jonathan Burroughs, 2911 Canterbury, representing ARC of Midland, requested Council consider alternatives to the proposed rate increase for Dial-A-Ride. The following citizens appeared before Council in opposition to the proposed rate increase for Dial-A-Ride: Resident from 605 E. Haley, Charles Teal, 2207 W. Wackerly, Charlotte Williams, 1600 Clay, Donna Beford, 2212 Wisconsin, Jim Warner, 2207 W. Wackerly, resident from 1307 Jefferson, Claudette Thompson, 125 Cheryl Drive, from the Center for Independent Living, and Cheri Smith. The hearing closed at 8:20 p.m.

Council directed the proposed rate increase for Dial-A-Ride be removed from the 1999-2000 budget priorities and also directed staff to contact Jonathan Burroughs regarding issues brought before Council on Dial-A-Ride.

Special Tax Appeal Contingency Millage:

A public hearing opened at 8:33 p.m., no comments were made, the hearing closed at 8:34 p.m.

Councilman Moolenaar indicated he would prefer to keep the special tax appeal contingency millage at its current rate. After discussion, Council directed a two year plan be implemented to fund the reserve for the future settlement of major tax appeals at a level equal to 80% of the total potential liability for refund of property taxes, tax administration fees and interest.

$1.5 Million Appropriation for Defense Costs for Major Tax Appeals:

A public hearing opened at 8:45 p.m., no comments were made, the hearing closed at 8:46 p.m.

Councilman Moolenaar indicated he was not in favor of a millage increase for this appropriation. After discussion, Council directed the proposed appropriation of $1.5 million remain on the 1999-2000 budget priorities list.

Patricia Halm, Midland City Attorney, gave a brief update on the Bolt vs City of Lansing case. This case addresses the issue of whether the City of Lansing’s storm water service charge is a fee or a tax. The Supreme Court held, on a 4 to 3 decision, the storm water service charge was not a valid user fee, but instead was a tax that required voter approval. The City of Lansing plans to ask the Court to reconsider its decision. The Michigan Municipal League, the Michigan Township Association, the Michigan Association of Counties and the Public Corporation Law Section of the Michigan State Bar are in the process of drafting an Amicus Curiae brief in support of reconsideration.

Appropriation for open drain maintenance to be funded by user fee rates:

A public hearing opened at 9:10 p.m. Lois Ann Reed, 1227 W. Sugnet, expressed concern that the aggressive cleaning of open drains and sewers before improvements were in place could possibly damage the storm sewer system. The hearing closed at 9:11 p.m.

Council agreed the proposed appropriation should remain on the 1999-2000 budget priorities list.

$250,000 Appropriation for Fire Station:

A public hearing opened at 9:15 p.m Charles Hepenstal, 1317 North Parkway, requested this proposed budget priority be deferred. Wilma Diesen, 5802 Flaxmoor, asked if a study had been conducted on the re-location of the fire stations. Pamela Hart, 4613 Arbor Drive, voiced her concern over how her neighborhood would be affected by the rezoning of the property the fire station currently sits on. The hearing closed at 9:25 p.m.

Council directed the issue of expedited funding of the fire station relocation project be removed from the 1999-2000 proposed budget priorities list.

$500,000 Appropriation for Estimated Cost of Federal Drinking Water Act Compliance:

A public hearing opened at 9:35 p.m., no comments were made, the hearing closed at 9:36 p.m.

Council directed this proposed appropriation remain on the 1999-2000 budget priorities list.

The following resolution was then offered by Councilman Wazbinski and seconded by Councilman Coppage:

WHEREAS, in accord with Section 5.11 of the Charter of the City of Midland, and after having given proper legal notice, and having conducted a public hearing on Monday, February 8, 1999, on budget priorities for the 1999-2000 fiscal year; now therefore

RESOLVED, that the following are hereby adopted as City Council’s budget priorities for the 1999-2000 fiscal year:

1. The special tax appeal contingency millage levy shall be set at the rate necessary to implement a two year plan to fund the reserve for future settlement of major tax appeals at a level equal to 80 percent of the total potential liability for refund of property taxes, tax administration fees and interest.

2. An appropriation of $1.5 million shall be included in the General Fund budget for defense costs for major tax appeals, and shall be funded by a combination of tax administration fees and additional property tax millage, if necessary.

3. An appropriation for open drain maintenance shall be included in the Wastewater Fund budget, and shall be funded by user fee rates within that fund.

4. An appropriation of $250,000 shall be included in the General Fund budget to continue funding for the City’s five-year plan to replace and relocate fire stations #1 and #3.

5. An appropriation of $500,000 shall be included in the Water Fund budget to establish a two-year funding plan for the estimated cost of federal Drinking Water Act compliance. Contributions in the amount of $200,000 from the City’s industrial water customers shall also be budgeted as revenue for each of the two years.

RESOLVED FURTHER, that the City Manager is hereby directed to address the aforementioned City Council budget priorities in his proposed budget for the 1999-2000 fiscal year. (Motion adopted.)

97 Sidewalk Improvement Program Amendment Diane Dryzga, City Assessor, presented information on amendments to the Special Assessment Roll for the 1997 Sidewalk Improvement Program and to the Special Assessment Roll for the 1998 Sidewalk Improvement Program. A public hearing on the amendments to the 1997 Sidewalk Improvement Program Special Assessment Roll opened at 9:40 p.m., no comments were made, the hearing closed at 9:41 p.m. The following resolution was then offered by Councilman Coppage and seconded by Councilman Tysse:

WHEREAS, pursuant to due notice to all interested parties the City Council has duly met on said day at the time specified in said notice and has heard and considered all objections and suggestions to the proposed amendments to the 1997 Sidewalk Improvement Special Assessment District and Special Assessment Roll; and

WHEREAS, certain changes and revisions are required to amend the 1997 Sidewalk Improvement Special Assessment Roll to agree with the final construction conditions and walks installed by certain property owners and the City of Midland to comply with the conditions set forth in the Sidewalk Construction Agreements and resolutions approved by Council for said program; now therefore

RESOLVED , that the 1997 Sidewalk Improvement Special Assessment Roll is hereby amended by deleting parcels 14-14-10-194, 14-14-10-198, 14-14-10-387 and parcel 14-14-10-398 from said Roll; and

RESOLVED FURTHER, that the 1997 Sidewalk Improvement Special Assessment Roll is hereby amended by adding parcels (14-09-10-044 in the amount of $819.00, parcel 14-09-10-048 in the amount of $702.00, parcel 14-09-10-050 in the amount of $666.00, parcel 14-09-10-052 in the amount of $792.00, parcel 14-09-10-060 in the amount of $810.00 and parcel 14-09-10-062 in the amount of $270.00; and

RESOLVED FURTHER, that the City Council does hereby determine that it is satisfied with said amended Special Assessment Roll; and

RESOLVED FURTHER, that the City Council does hereby determine that said assessments are in proportion to benefits received; and

RESOLVED FURTHER, that said amended Special Assessment Roll be and the same is hereby approved and confirmed in all respects, in the amount of $45,162 and that the total estimated cost of said improvements is $68,250 and the City at large cost is $23,088; and

RESOLVED FURTHER, that, with the exception of parcels 14-09-10-044, 14-09-10-048, 14-09-10-050, 14-09-10-052, 14-09-10-060 and 14-09-10-062 all remaining installments shall be collected in the manner described in the resolution confirming the 1997 Sidewalk Improvement Special Assessment Roll adopted June 16, 1997; and

RESOLVED FURTHER, that for parcels 14-09-10-048, 14-09-10-050, 14-09-10-052, 14-09-10-060 and 14-09-10-062 the amount of said roll shall be divided into four annual installments with interest, with the first installment to be collected during the year of 1999, and one during each succeeding year for three years thereafter. Provided, however, that pursuant to Chapter 20 of the

Code of Ordinances, each taxpayer of the above five parcels shall have the opportunity of paying said assessment in full in addition to an annual interest payment equal to 6.5% calculated on a daily basis from June 17, 1997 until the date of this resolution within thirty days from the date of notification to pay the same; and

RESOLVED FURTHER, that the property owner of parcel 14-09-10-044 will pay at an interest rate equal to 6.5% on $819.00 from June 17, 1997 to December 15, 1997, the date of payment of the principal and on the unpaid balance from December 16, 1997 until the date of this resolution within thirty days from the date of notification to pay the same; and

RESOLVED FURTHER, that said amended roll shall be filed in the Office of the City Clerk, and the Clerk is hereby directed to endorse on said roll the date of confirmation, and that said Clerk is hereby directed to attach the warrant to a certified copy within ten days, therein commanding the City Assessor to spread the various sums and amounts appearing therein on a Special Assessment Roll or upon the 1999 General Tax Roll of the City for the full amount or in annual installments as directed by the Council; and

RESOLVED FURTHER, that the City Treasurer shall notify by mail the property owners of parcels 14-09-10-044, 14-09-10-048, 14-09-10-050, 14-09-10-052, 14-09-10-060 and

14-09-10-062 on said roll that said roll has been filed, stating the amount assessed, that said property owners shall have thirty days from the date of such notification to pay said assessment in full with accrued interest, and that payments made thereafter shall be divided into four equal annual installments bearing the interest rate of 6.5% with the first payment to include two years of interest at 6.5% per year; and

RESOLVED FURTHER, that upon the expiration of said thirty day period the roll shall be closed for collection by the City Treasurer and forwarded to the City Assessor for spreading said Roll on all unpaid assessments on the basis of four annual installments with interest; and

RESOLVED FURTHER, that the City Treasurer is hereby authorized and instructed to refund $18.00 plus interest in the amount of $2.00 to the persons who owned parcel 14-14-10-387 on

June 30, 1997; and

RESOLVED FURTHER, that the City Treasurer is hereby authorized and instructed to adjust the penalty assessed after the September 15, 1998 tax deadline on parcels 14-14-10-194,

14-14-10-198 and 14-14-10-398 to zero. (Motion adopted.)

98 Sidewalk Improvement  Program Amendment    A public hearing on the amendments to the 1998 Sidewalk Improvement Program Special Assessment Roll opened at 9:42 p.m., no comments were made, the hearing closed at 9:43 p.m. The following resolution was then offered by Councilman Moolenaar and seconded by Councilman Tysse:

WHEREAS, pursuant to due notice to all interested parties the City Council has duly met on said day at the time specified in said notice and has heard and considered all objections and suggestions to the proposed amendments to the 1998 Sidewalk Improvement Special Assessment District and Special Assessment Roll; and

WHEREAS, certain changes and revision are required to amend the 1998 Sidewalk Improvement Special Assessment Roll to agree with the final construction conditions and walks installed by certain property owners and the City of Midland to comply with the conditions set forth in the Sidewalk Construction Agreements and resolutions approved by Council for said program; now therefore

RESOLVED, that the 1998 Sidewalk Improvement Special Assessment Roll is hereby amended by adding parcel 11-32-30-070 in the amount of $783.00; and

RESOLVED FURTHER, that the City Council does hereby determine that it is satisfied with said amended Special Assessment Roll; and

RESOLVED FURTHER, that the City Council does hereby determine that said assessments are in proportion to benefits received; and

RESOLVED FURTHER, that said amended Special Assessment Roll be and the same is hereby approved and confirmed in all respects, in the amount of $36,477 and that the total estimated cost of said improvements is $40,825 and the City at large cost is $4,348; and

RESOLVED FURTHER, that, with the exception of parcel 11-32-30-070, all remaining installments shall be collected in the manner described in the resolution confirming the 1998 Sidewalk Improvement Special Assessment Roll adopted July 13, 1998; and

RESOLVED FURTHER, that for parcel 11-32-30-070 the amount of said roll shall be divided into five annual installments with interest, with the first installment to be collected during the year of 1999, and one during each succeeding year for four years thereafter. Provided, however, that pursuant to Chapter 20 of the Code of Ordinances, the taxpayer of the above parcel shall have the opportunity of paying said assessment in full in addition to an annual interest payment equal to 6.5% calculated on a daily basis from July 14, 1998 until the date of this resolution within thirty days from the date of notification to pay the same; and

RESOLVED FURTHER, that said amended roll shall be filed in the Office of the City Clerk, and the Clerk is hereby directed to endorse on said roll the date of confirmation, and that said Clerk is hereby directed to attach the warrant to a certified copy within ten days, therein commanding the City Assessor to spread the various sums and amounts appearing therein on a Special Assessment Roll or upon the 1999 General Tax Roll of the City for the full amount or in annual installments as directed by the Council; and

RESOLVED FURTHER, that the City Treasurer shall notify by mail the property owner of parcel 11-32-30-070 on said roll that said roll has been filed, stating the amount assessed, that said property owner shall have thirty days from the date of such notification to pay said assessment in full with accrued interest, and that payments made thereafter shall be divided into five equal annual installments bearing the interest rate of 6.5% per year on the original principal amount; and

RESOLVED FURTHER, that upon the expiration of said thirty day period the roll shall be closed for collection by the City Treasurer and forwarded to the City Assessor for spreading said Roll on all unpaid assessments on the basis of five annual installments with interest. (Motion adopted.)

PUBLIC COMMENTS Charles Hepenstal, 1317 North Parkway, complimented the City Council, City Manager and staff on the improved communication process with the public regarding the budget process. Wilma Diesen, 5802 Flaxmoor, inquired about the fuel tank issue at the Barstow Airport.

Sewer Connection Fees - Ordinance Amendment    Noel Bush, Director of Utilities, presented information on  a second reading of an amendment to Chapter 21-43 which eliminates fees for connection to the storm sewer for individuals separating their footing drains or downspouts. The following ordinance amending Section 21-43, Sewer Connection Fees was offered by Councilman Tysse and seconded by Councilman Coppage:

Ordinance No. 1436

An ordinance to amend the code of ordinances of the City of Midland, Michigan, by amending Section 21-43, Article I of Chapter 21 thereof.

The City of Midland Ordains:

Section 1: Chapter 21, Article I, Section 21-43, is hereby amended to read as follows:

Sec. 21-43. Sewer Connection Fees.

a) There are hereby established two (2) separate classifications of sewer connection permits:

(1) For the discharge of domestic wastes, not including intercepted groundwaters or stormwaters from roofs, building drains, window well drains, patio drains, truck docks or parking lots, into designated sanitary sewers.

(2) For the discharge of intercepted groundwaters or stormwaters from roofs, yards, building drains, window well drains, patio drains, truck docks or parking lots into designated storm sewers.

b) A sewer connection permit shall be issued upon payment of the following applicable fee:

(1) For the discharge of domestic wastes into designated sanitary sewers, a sanitary sewer connection permit shall not be granted until the applicant has paid the proper fee established in accordance with the following schedule of fees and classification of property:

(i) For property which has previously paid a special assessment, the permit fee shall be one hundred twenty dollars ($120.00).

(ii) For property which has previously constructed at private expense a sewer accepted and used by the city as a public sewer, the permit fee shall be one hundred twenty dollars ($120.00).

(iii) For property which has, previous to the adoption of this chapter, made a connection to any existing city sewer, the permit fee shall be one hundred twenty dollars ($120.00).

(iv) For each property which has not borne the expense of the construction of sewer mains, a permit shall not be granted until a permit fee, the sum of which is equal to one-half (1/2) of the per-foot cost of a ten-inch sewer indexed to the year of connection using The Engineering News Record, "The Construction Cost Index," and calculated by the city engineer on a front foot basis, is paid. An additional charge shall be made for a six-inch connection line from the sewer main to the property line of the property to be served, if the sewer has or will be constructed by the city. Said additional charges shall be the city’s actual construction or contract costs. The property owner may choose to pay this fee in five (5) installments, the first installment being due at the time of connection, and the deferred installments being due annually thereafter, with interest accumulating at the rate of the most recent rate established by the city council for annual payments of special assessments. In such event, this charge shall constitute a lien on the premises subject thereto, and that amount shall also be a debt to the person to whom assessed until paid.

Annually, the city engineer shall notify the director of fiscal services of any such charges due. The director of fiscal services shall forward a statement of the total charges assessed on each parcel of property to the owner, as shown by the last current assessment or tax roll, and said assessment shall be payable to the city treasurer within thirty (30) days from the date said statement was forwarded. If not paid within the prescribed thirty-day period, such statement shall be filed by the director of fiscal services with the city assessor and shall thereupon be assessed against the land in question and become a lien on such property, in accordance with the city of Midland charter. The amount so charged may be discharged at any time by the payment of the amount specified in the statement, together with accrued interest compiled from the time of filing said statement with the city assessor.

(2) For the discharge of intercepted groundwaters or stormwaters into designated storm sewers, a storm sewer connection permit shall not be granted until the applicant has paid the proper fee established in accordance with the following schedule of fees and classification of property:

(i) For property for which the connection of a downspout, weep tile, footing drain, sump pump discharge or any other conduit that carries the discharge of stormwater or intercepted ground water to a designated storm sewer was completed after October 26, 1987, the permit fee shall be one hundred twenty dollars ($120.00).

(ii) For property with downspout, weep tile, footing drain, sump pump discharge or any other conduit that carries the discharge of stormwater or intercepted ground water connected to a sanitary sewer prior to October 27, 1987, and for which the connection was eliminated and a subsequent connection to a designated storm sewer is requested, a permit fee shall not be levied.

(3) The combined permit fee for each property for which a sanitary sewer connection permit and a storm water connection permit is obtained at the same time and for which the inspection of both connections are to be completed at the same time shall be one hundred sixty-five dollars ($165.00).

Section 2. This Ordinance shall take effect upon publication. (Ordinance adopted.)

1999-2000 Construction Project Priorities List Jerry Hammond, City Engineer, presented an overview on  the amended 1999-2000 Construction Project Priorities List. The following resolution was offered by Councilman Moolenaar and seconded by Councilman Tysse:

WHEREAS, a report has been received from the City Engineer listing the proposed construction projects for 1999-2000 which includes projects petitioned by property owners, projects recommended by the City Administration and others; and

WHEREAS, City Council has reviewed the proposed construction projects list and received comments from interested citizens; and

WHEREAS, City Council approved an amended proposed construction project listing for

1999-2000 and directed the administration to include funding requests for the proposed projects in the 1999-2000 budget; now therefore

RESOLVED, that the amended report is hereby directed to be placed on file in the City Clerk’s Office and at the Grace A. Dow Memorial Library and a map of the projects be placed in the lobby of Midland City Hall. (Motion adopted.)

1999 Annual Sidewalk Report The following resolution was offered by Councilman Coppage and seconded by Councilman Moolenaar:

RESOLVED, that in accord with Section 22-17 of the Code of Ordinances, the 1999 Annual Sidewalk Report is hereby received and is ordered filed in the City Clerk's Office. (Motion adopted.)

Land Lease - Hangar 04A Jerry Hammond, City Engineer, presented information on an assignment of a Land Lease for Hangar Site 04A. Charles Hepenstal, 1317 North Parkway, requested further information on the person leasing the hangar. The following resolution was offered by Councilman Wazbinski and seconded by Councilman Coppage:

WHEREAS, an assignment and acceptance of lessee’s interest in lease agreement from Mr. Clarence Koenitzer to Mr. Carl Hill has been received to transfer ownership of hangar 04A at Jack Barstow Airport; and

WHEREAS, Mr. Carl Hill will be the new owner of hangar 04A at Barstow Airport and is desirous of transferring the existing land lease in his name; now therefor

RESOLVED, that the City Council approves the transfer of the Hangar Land Lease for Site 04A from Mr. Clarence Koenitzer to Mr. Carl Hill and authorizes the Mayor and City Clerk to sign the agreement on behalf of the City. (Motion adopted.)

Land Lease - Hangar 2E Jerry Hammond, City Engineer, presented information on a Land Lease Agreement for Hangar Site 2E. Charles Hepenstal, 1317 North Parkway, spoke in opposition to the negligible fee Barstow Airport receives for its land leases for hangars. The following resolution was offered by Councilman Moolenaar and seconded by Councilman Coppage:

WHEREAS, a land lease agreement has been executed for Hangar Site #2E the proposed lessor, Dale Johnson, 3704 Cambridge, Midland, MI 48640; and

WHEREAS, the City Attorney has prepared and approved the proposed lease agreement; now therefor

RESOLVED, that the City Council hereby approves the proposed land lease for Hangar Site #2E with Dale Johnson and authorizes the Mayor and City Clerk to execute the lease agreement on behalf of the City. (Motion adopted.)

Increased Expenditures - Dow Corning Tax Return Examination The following resolution was offered by Councilman Coppage and seconded by Councilman Moolenaar:

WHEREAS, Dow Corning Corporation appealed the 1996, 1997 and 1998 assessments and taxable values of certain property it owns in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, the services of the public accounting firm of Plante and Moran, LLP, are required to assist the City in its defense of Dow Corning’s appeals; and

WHEREAS, the City Council, on September 14, 1998, authorized payment for said services in connection with the 1997 and 1998 appeals in an amount not to exceed $42,500; and

WHEREAS, it is now the wish of the City Council that the scope of said services be expanded to include the 1996 appeal; and

WHEREAS, funding for said expenditures exists within the Tax Appeals - Dow Corning activity of the 1998-99 General Fund budget; now therefore

RESOLVED, that the total amount authorized for payment to Plante and Moran, LLP, for continued professional services in the matter of the aforementioned appeals is hereby increased to an amount not to exceed $58,500. (Motion adopted.)

Change Order - SCADA Project Noel Bush, Director of Utilities, presented information on the SCADA Project for the Water Treatment Plant in regard to approving a change order in the amount of $176,510. The following resolution was offered by Councilman Coppage and seconded by Councilman Moolenaar:

WHEREAS, a project has previously been awarded (Purchase Order # 991396) to the low bidder, The Cadre Corporation, of Madison Heights, Michigan, for the indicated amount of $750,500.00 in accord with Article II of Chapter 2 of the Midland Code of Ordinances for the purchase of a SCADA System for the Water Treatment Plant; and

WHEREAS, a Change Order request for the indicated amount of $176, 510.00 has been received as submitted by The Cadre Corporation to expand the scope of services originally outlined in the bid; and

WHEREAS, funding is provided by the Water Fund Capital Outlay Accounts; now therefore

RESOLVED, that the Change Order submitted by The Cadre Corporation, of Madison Heights, Michigan, for the indicated amount of $176,510.00, is hereby accepted and the Purchase Order # 991396 amount increased to $927,010.00. (Motion adopted.)

City/County Joint Building Authority (Commissioners) The following resolution was offered by Councilman Coppage and seconded by Councilman Moolenaar:

WHEREAS, the articles of incorporation of the City and County of Midland Joint Building Authority provide that the Authority shall be directed and governed by a Commission of the Authority consisting of three members, one to be elected by the Midland City Council, one to be elected by the Midland County Board of Commissioners, and one to be elected by the joint action of the City Council and the County Board of Commissioners; and

WHEREAS, on January 25, 1993, the Midland City Council elected Karl S. Tomion to represent the City of Midland for a four-year term on said Commission; and

WHEREAS, on February 8, 1993, Herbert D. Doan was elected by the Midland City Council for a four-year term as the third member of said Commission; now therefore

RESOLVED, that Karl S. Tomion be and hereby is re-elected to the office of Commissioner of the City and County of Midland Joint Building Authority for a term beginning January 25, 1997 and expiring on January 24, 2001; and

RESOLVED FURTHER, that Herbert D. Doan be and hereby is re-elected to the office of Commissioner of the City and County of Midland Joint Building Authority for a term beginning February 8, 1997, and expiring on February 7, 2001. (Motion adopted.)

Purchase - Truck Panel Body/Air Compressor & Accessories     The following resolution was offered by Councilman Coppage and seconded by Councilman Moolenaar:

WHEREAS, sealed proposals (Bid No. 2210) have been advertised and received in accord with Article II of Chapter 2 of the Midland Code of Ordinances for the purchase of One Truck Panel Body, Air Compressor & Accessories to be installed on a six man crew cab & chassis water service truck supplied by Water Distribution; and

WHEREAS, funding is provided by the Water Fund Capital Account; now therefore

RESOLVED, that the low sealed proposal submitted by Automotive Service Company, of Jackson, Michigan, for the indicated amount of $22,383.88, is hereby accepted and a purchase order authorized. (Motion adopted.)

Sale - House at 3610 W. Wackerly The following resolution was offered by Councilman Coppage and seconded by Councilman Moolenaar:

WHEREAS, the City of Midland desires to enter into a contract for the sale of a newly constructed house at 3610 West Wackerly Street in the City of Midland; and

WHEREAS, an agreement to purchase said property, dated February 4, 1999, was submitted by Howard J. Haselhuhn and Gwendolyn K. Haselhuhn, in the amount of $96,000; and

WHEREAS, the purchaser will obtain a mortgage, the proceeds of which are to be disbursed to the City of Midland; and

WHEREAS, the requirement of sealed competitive proposals for sale of said property is hereby waived as being impractical; now therefore

RESOLVED, that all terms and conditions of the attached purchase agreement are hereby approved; and

RESOLVED FURTHER, that the City Council hereby determines that sealed proposals for the sale of said property are impractical, and in accord with Section 2-18 of the Code of Ordinances, the Mayor and City Clerk are hereby authorized and directed to execute a warranty deed for the sale of this property on behalf of the City. (Motion adopted.)

Being no further business the meeting adjourned at 10:12 p.m.

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