February 19, 2001

 

A regular meeting of the City Council was held on Monday, February 19, 2001, 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.

 

Council members present:

Drummond Black, John Coppage, Mary Currie, Hollis McKeag, Marty Wazbinski

Council members absent:

None

 

Minutes

Approval of the minutes of the February 12, 2001 regular meeting was offered by Council Member Wazbinski and seconded by Council Member McKeag.  (Motion adopted.)

 

Zoning Petition No. 471

Jon Lynch, Director of Planning and Community Development, presented information on Zoning Petition No. 471 – rezoning property on Lee Street from Residential A-3 to Residential A-4.  A public hearing opened at 7:10 p.m.  Julie Keil, attorney for the developer, 925 East Wheeler, reviewed the plans and spoke in support of the rezoning.  The hearing closed at 7:13 p.m.  The following ordinance amendment was then offered by Council Member Wazbinski and seconded by Council Member McKeag:

 

ORDINANCE NO. 1493

AN ORDINANCE TO AMEND ORDINANCE NO. 727, BEING AN ORDINANCE TO REGULATE AND RESTRICT THE LOCATION OF TRADES AND INDUSTRIES AND THE LOCATION OF BUILDINGS DESIGNED FOR SPECIFIC USES, TO REGULATE AND LIMIT THE HEIGHT AND BULK OF BUILDINGS HEREAFTER ERECTED OR ALTERED, TO REGULATE AND DETERMINE THE AREA OF YARDS, COURTS, AND OTHER OPEN SPACES SURROUNDING BUILDINGS, TO REGULATE AND LIMIT THE DENSITY OF POPULATION, AND FOR SAID PURPOSES, TO DIVIDE THE CITY INTO DISTRICTS AND PRESCRIBE PENALTIES FOR THE VIOLATION OF ITS PROVISIONS BY AMENDING THE ZONING MAP TO PROVIDE A RESIDENTIAL A-4 ZONING CLASSIFICATION WHERE RESIDENTIAL A-3 ZONING PRESENTLY EXISTS.

The City of Midland Ordains:

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

That property described as:  Lots 16 through 54 of Adams Acres Subdivision No. 1, according to the plat thereof recorded in Liber D of Plats, Pages 25 and 26, Midland County Records, excluding therefrom that which lies within the following description:

A parcel of land situated in the Southeast ¼ of the Southeast ¼ of Section 13, T14N-R2E, City of Midland, Midland County, Michigan, described as follows:  Beginning at the intersection of the Westerly right-of-way line of US-10 and the South line of said Section 13, said point being South 89° 52’ 35” West, 291.90 feet along the South line of said Section 13 from the Southeast corner of said Section 13; thence Northerly along said Westerly right-of-way line along the following courses:  North 10° 47’ 50” West, 585.04 feet and North 79° 12’ 10” East, 35 feet and North 10° 47’ 50” West, 198.83 feet to a point of curvature in said Westerly right-of-way line and Northerly 6.17 feet along the arc of said curve, said arc being subtended by a chord bearing North 10° 51’ 41” West, 6.17 feet and a radius of 2774.93 feet; thence South 79° 04’ 31” West, 82.89 feet to a point 10 feet Westerly of the East line of Lot 28, Adams Acres Subdivision No. 1, according to the plat thereof recorded in Liber D of Plats, Pages 25 and 26, Midland County Records; thence South 00° 02’ 03” West, 333.86 feet parallel with and 10 feet Westerly of the East line of said Adams Acres Subdivision No. 1, to the South line of Lot 23, Adams Acres Subdivision No. 1; thence South 06° 18’ 11” West, 165.92 feet; thence South 47° 04’ 51” West, 165.47 feet to the South line of Lot 19, Adams Acres Subdivision No. 1; thence South 00° 05’ 36” West, 156.00 feet to the South line of said Section 13; thence North 89° 52’ 15” East, 337.10 feet to the Point of Beginning,

     be, and the same is hereby changed to a Residential A-4 District; and

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

Section 3.  This Ordinance shall take effect upon publication.  (Ordinance adopted.)

 

Planned Unit Development No. 13

Jon Lynch, Director of Planning and Community Development, presented information on Planned Unit No. 13, The Village at Joseph’s Run.  A public hearing opened at 7:35 p.m.  Mike Lerner, representing Royal Castle Companies of Miami, Florida, reviewed the plans and spoke in support of the project.  The hearing closed at 7:53 p.m.  The following resolution was then offered by Council Member Wazbinski and seconded by Council Member McKeag:

 

WHEREAS, Royal Castle Companies has requested approval of Planned Unit Development No. 13, a residential development of 128 units on 13.54 acres on the south side of Joseph Drive east of Jefferson Avenue, to be known as The Village at Joseph’s Run; and

WHEREAS, the City Planning Commission has conducted a public hearing in accord with Section 26.4(e) of the Zoning Ordinance of the City of Midland, and has submitted its recommendation of approval, subject to the following contingencies:

1.      Interior drive grades will be between .3% and 6%.

2.      Ten-foot wide utility easements along both the north and south sides of Joseph Drive between Jefferson Avenue and Midfield Lane will be recorded prior to issuance of building permits.

3.      An adequate number of parking spaces to meet the needs of both residents and visitors will be provided.

4.      Illumination from site lighting will not be cast off the subject site.

5.      Utility easements for sanitary sewer, water, and storm sewer will be provided to the satisfaction of the City of Midland Engineering Department.

6.      Water on site shall meet minimum flow required in the Uniform Fire Code.

7.      Installation of a fire department access roadway, 20 feet wide and capable of supporting 60,000-pound vehicles, will be provided prior to construction of any structures.

8.      Interior drives shall be posted for no parking, as directed by the Midland Fire Department; now therefore

RESOLVED, that the City Council finds Planned Unit Development No. 13 to be in accord with Section 26.5 of the Zoning Ordinance of the City of Midland, and hereby approves said Planned Unit Development No. 13, in accord with documents dated January 23, 2001, subject to the contingencies noted above.  (Motion adopted.)

 

Payment in Lieu of Taxes for The Village at Joseph’s Run

Robert Fisher, Director of Fiscal Services, presented information on an amendment to Chapter 2, Article XIII, of the Code of Ordinances to provide for Payment in Lieu of Taxes for The Village at Joseph’s Run.  The following ordinance amendment was then offered by Council Member Currie and seconded by Council Member Coppage:

 

ORDINANCE NO. 1494

An ordinance to amend the Code of Ordinances of the City of Midland, Michigan, by amending Section 2-262, Article XIII of Chapter 2 and by adding new sections which shall be designated as Sections 2-260.6 and 2-264.4, Article XIII, Chapter 2 thereof.

The City of Midland Ordains:

Section 1.  Article XIII, Chapter 2, Section 2-262, Tax Exemptions for housing developments for elderly and low-income persons is hereby amended to read as follows:

Sec. 2-262.  Class of housing developments.

     It is hereby determined that the class of housing developments to which the tax exemption shall apply, and for which a service charge shall be paid in lieu of such taxes, shall be that portion of a development which is for elderly persons or low-income persons and which is financed or assisted pursuant to the act.  It is further determined that Grove Street Commons I, Grove Street Commons II, The Village At Joseph’s Run, and the elderly portions of Charter Square and Green Hill are of this class.

Section 2.  Article XIII, Sections 2-260.6 and 2-264.4 are hereby added to read as follows:

Sec. 2-260.6.  The Village At Joseph’s Run.

    The City acknowledges that Joseph’s Village Limited Dividend Housing Association Limited Partnership (a sponsor, as defined herein) has offered, subject to allocation of tax credit financing from the Authority, under Section 42 of the Internal Revenue Code, as amended, to erect or operate and maintain a housing development identified as The Village At Joseph’s Run, located on the following described property:

Part of the South ½ of the North ½ of the Southwest ¼, Section 34, T15N-R2W, Larkin Township, Midland County, Michigan, being further described as commencing at the Southwest corner of said section; thence N 00° 30’ 48” W, 1318.01 feet, along the West section line to the South 1/8 line; thence along said 1/8 line, N 89° 54’ 40” E, 1265.93, feet to the point of beginning; thence N 00° 37’ 19” W, 424.29 feet, to the centerline of Joseph Drive; thence along said centerline along a curve to the right 82.77 feet, having a radius of 1637.02 feet, and a central angle of 02° 53’ 49”, and a chord bearing and distance of N 88° 27’ 46” E, 82.76 feet; thence along said centerline of Joseph Drive N 89° 54’ 40” E, 1299.84 feet, to the North and South ¼ line; thence along said ¼ line S 00°  37’ 19” E, 426.39 feet, to the South 1/8 line; thence along said 1/8 line, S 89° 54’ 40” W, 1382.59 feet, to the point of beginning, containing 13.54 acres (net 12.49 acres) more or less, subject to any and all easements and/or right of way whether used, implied or of record.

Sec. 2-264.4.  Establishment Of Annual Service Charge For The Village At Joseph’s Run.

(A)    Annual service charge.  The housing development identified as The Village At Joseph’s Run and the property on which it shall be constructed shall be exempt from all property taxes from and after the commencement of construction.  The City, acknowledging that the sponsor and the authority have established the economic feasibility of the housing development in reliance upon the enactment and continuing effect of this ordinance and the qualification of the housing development for exemption from all property taxes and a Payment In Lieu Of Taxes as established in this ordinance, and in consideration of the sponsor’s offer, subject to receipt of an allocation of low-income housing tax credits under Section 42 of the Internal Revenue Code of 1986, as amended, to construct, own and operate the housing development, agrees to accept payment of an annual service charge for public services in lieu of all property taxes.  The annual service charge shall be equal to four percent (4%) of the annual shelter rents less utilities.

(B)   Limitation on the payment of annual service charge.  Notwithstanding subsection (A), the service charge to be paid each year in lieu of taxes for the part of the housing development which is tax exempt and which is occupied by other than low-income persons shall be equal to the full amount of taxes which would be paid on that portion of the housing development if the housing development were not exempt.

Section 3.  This Ordinance shall take effect upon publication.  (Ordinance adopted.)

 

PUBLIC COMMENTS

No comments were made.

 

2001 Sanitary Sewer Improvements Bonds

Robert Fisher, Director of Fiscal Services, presented information on the 2001 Sanitary Sewer Improvement Bonds.  The following resolution was then offered by Council Member Wazbinski and seconded by Council Member McKeag:

 

WHEREAS, the qualified electors of the City of Midland, Counties of Midland and Bay, State of Michigan (the “Issuer”), at the election duly called and held on February 22, 2000, did by more than the required majority of those voting approve the following proposition:

Sanitary Sewer Bonding Proposition

Shall the City of Midland, Counties of Midland and Bay, Michigan, borrow the principal amount of not to exceed Fifteen Million Eight Hundred Thousand Dollars ($15,800,000) and issue its general obligation unlimited tax bonds therefor, for the purpose of paying the cost of acquiring and constructing additions, extensions and improvements throughout the City’s Sanitary Sewer System including a pumping station in the Nelson Street Area together with all appurtenances and attachments relating thereto?

AND WHEREAS, it is the determination of the City Council that at this time unlimited tax general obligation bonds in the principal amount of Fifteen Million Eight Hundred Thousand Dollars ($15,800,000) should be issued for the purposes described in the foregoing proposition (the “Project”);

NOW, THEREFORE, BE IT RESOLVED THAT:

          1.       Bonds of the Issuer designated General Obligation Unlimited Tax Bonds, Series 2001 (the “Bonds”) are authorized to be issued in the aggregate principal sum of Fifteen Million Eight Hundred Thousand Dollars ($15,800,000) for the purpose of paying the costs of the Project, including the costs incidental to the issuance, sale and delivery of the Bonds.  The issue shall consist of bonds in fully-registered form of the denomination of $5,000, or multiples thereof not exceeding for each maturity the maximum principal amount of that maturity, numbered consecutively in order of registration, dated as of April 1, 2001.  The Bonds shall bear interest, mature, be subject to redemption, and be payable at the times and in the manner set forth in Sections 6 and 7 hereof.

Interest shall be payable to the registered owner of record as of the 15th day of the month prior to the payment date for each interest payment.  The record date of determination of registered owner for purposes of payment of interest as provided in this paragraph may be changed by the Issuer to conform to market practice in the future.  Interest shall be payable by check or draft drawn on the Transfer Agent (as hereinafter defined) mailed to the registered owner at the registered address, as shown on the registration books of the Issuer maintained by the Transfer Agent.  The principal of the Bonds shall be payable upon presentation and surrender to the Transfer Agent.

A bank or financial institution shall be appointed to serve as bond registrar, paying agent and transfer agent (the “Transfer Agent”) for this issue and be so designated in the Official Notice of Sale for the Bonds.  The Treasurer of the Issuer is hereby authorized to execute one or more agreements with the Transfer Agent on behalf of the Issuer.  The Issuer reserves the right to replace the Transfer Agent at any time upon written notice to the registered owners of record of the Bonds not less than sixty (60) days prior to an interest payment date.

          2.       The Bonds of this issue shall be executed in the name of the Issuer with the facsimile signatures of the Mayor and Clerk of the Issuer and shall have the seal of the Issuer, or a facsimile thereof, printed or impressed on the Bonds.  No Bond shall be valid until authenticated by an authorized officer or representative of the Transfer Agent.  The Bonds shall be delivered to the Transfer Agent for authentication and be delivered by the Transfer Agent to the purchaser or other person in accordance with instructions from the Clerk or Treasurer of the Issuer upon payment of the purchase price for the Bonds in accordance with the bid therefor when accepted.  The Bonds may be issued in book-entry-only form through the Depository Trust Company in New York, New York (“DTC”) and any officer of the Issuer is authorized to execute such custodial or other agreement with DTC as may be necessary to accomplish the issuance of the Bonds in book-entry-only form and to make such changes in the Bond form with the parameters of this resolution as may be required to accomplish the foregoing.

          3.       The Transfer Agent shall keep the books of registration for this issue on behalf of the Issuer.  Any Bond may be transferred upon such registration books by the registered owner of record, in person or by the registered owner’s duly authorized attorney, upon surrender of the Bond for cancellation, accompanied by delivery of a duly executed written instrument of transfer in a form approved by the Transfer Agent.  Whenever any Bond or Bonds shall be surrendered for transfer, the Issuer shall execute and the Transfer Agent shall authenticate and deliver a new Bond or Bonds, for like aggregate principal amount.  The Transfer Agent shall require the payment by the bondholder requesting the transfer of any tax or other governmental charge required to be paid with respect to the transfer.

Unless waived by any registered owner of Bonds to be redeemed, official notice of redemption shall be given by the Transfer Agent on behalf of the Issuer.  Such notice shall be dated and shall contain at a minimum the following information:  original issue date; maturity dates; interest rates; CUSIP numbers, if any; certificate numbers (and in the case of partial redemption) the called amounts of each certificate; the place where the Bonds called for redemption are to be surrendered for payment; and that interest on the Bonds or portions thereof called for redemption shall cease to accrue from and after the redemption date.

In addition, further notice shall be given by the Transfer Agent in such manner as may be required or suggested by regulations or market practice at the applicable time, but no defect in such further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as prescribed herein.

          4.       The Treasurer shall open a separate depositary account with a bank or trust company designated by the City Council, designated 2001 GENERAL OBLIGATION UNLIMITED TAX 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 Bonds as they mature.  All proceeds from taxes levied for the Debt Retirement Fund shall be deposited into the Debt Retirement Fund as collected.  Commencing with the year 2001, there shall be levied upon the tax rolls of the Issuer for the purpose of the Debt Retirement Fund each year, in the manner required by the provisions of Act 202, Public Acts of Michigan, 1943, as amended, an amount sufficient so that the estimated collection therefrom will be sufficient to promptly pay, when due, the principal of and interest on the Bonds 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 surplus moneys on hand in the Debt Retirement Fund for the payment of principal of and interest on the Bonds, then credit therefor may be taken against such annual levy for the Debt Retirement Fund.

          5.       The Treasurer is authorized and directed to open a separate depositary account with a bank or trust company designated by the City Council, to be designated as follows:  2001 GENERAL OBLIGATION BONDS CONSTRUCTION FUND (the “Construction Fund”) and deposit into said Construction Fund the proceeds of the Bonds less accrued interest and premium, if any, which shall be deposited into the Debt Retirement Fund.  The moneys in the Construction Fund shall be used solely to pay the costs of the Project and the costs of issuance of the Bonds.

6.         The Bonds shall be in substantially the following form:

UNITED STATES OF AMERICA

STATE OF MICHIGAN

COUNTIES OF MIDLAND AND BAY

CITY OF MIDLAND

 GENERAL OBLIGATION UNLIMITED TAX BONDS

SERIES 2001

Date of

Interest Rate               Maturity Date              Original Issue              CUSIP

Registered Owner:

Principal Amount:                                                                                                                    Dollars

KNOW ALL MEN BY THESE PRESENTS, that the CITY OF MIDLAND, Counties of Midland and Bay, State of Michigan (the “Issuer”), acknowledges itself to owe and for value received hereby promises to pay to the Registered Owner specified above, or registered assigns, the Principal Amount specified above, in lawful money of the United States of America, unless redeemed prior to maturity on the Maturity Date specified above with interest thereon until paid from the Date of Original Issue specified above or such later date to which interest has been paid, at the Interest Rate per annum specified above, first payable on November 1, 2001 and semiannually thereafter.  Principal of this bond is payable at the corporate trust office of ________________, __________, Michigan, or such other transfer agent as the Issuer may hereafter designate by notice mailed to the registered owner not less than sixty (60) days prior to an interest payment date (the “Transfer Agent”).  Interest on this bond is payable to the registered owner of record as of the 15th day of the month preceding the interest payment date as shown on the registration books of the Issuer kept by the Transfer Agent by check or draft mailed by the Transfer Agent to the registered owner of record at the registered address.  For prompt payment of this bond, both principal and interest, the full faith, credit and resources of the Issuer are hereby irrevocably pledged.

This bond is one of a series of bonds aggregating the principal sum of $15,800,000, issued for the purpose of paying the costs of acquiring and constructing improvements, additions and extensions to the City’s Sanitary Sewer System and paying costs incidental to the issuance of the series of bonds in pursuance of a vote of the qualified electors of the Issuer voting thereon at an election duly called and held on February 22, 2000.

Bonds of this issue maturing in the years 2002 through 2010, inclusive shall not be subject to redemption prior to maturity.  Bonds maturing in the years 2011 and thereafter shall be subject to redemption at the option of the Issuer, in such order as the Issuer shall determine, on any interest payment date on or after May 1, 2010, at par and accrued interest to the date fixed for redemption.

Notice of redemption of any bond or portion thereof shall be given by the Transfer Agent at least thirty (30) days prior to the date fixed for redemption by mail to the registered owner at the registered address shown on the registration books kept by the Transfer Agent.  Bonds shall be called for redemption in multiples of $5,000 and any bond of a denomination of more than $5,000 shall be treated as representing the number of bonds obtained by dividing the denomination of the bond by $5,000 and such bond may be redeemed in part.  Notice of redemption for a bond redeemed in part shall state that upon surrender of the bond to be redeemed a new bond or bonds in aggregate principal amount equal to the unredeemed portion of the bonds surrendered shall be issued to the registered owner thereof.  No further interest on a bond or portion thereof called for redemption shall accrue after the date fixed for redemption, whether presented for redemption or not, provided funds are on hand with the Transfer Agent to redeem the bond or portion thereof.

This bond is transferable only upon the registration books of the Issuer kept by the Transfer Agent by the registered owner of record in person, or by the registered owner’s attorney duly authorized in writing, upon the surrender of this bond together with a written instrument of transfer satisfactory to the Transfer Agent duly executed by the registered owner or the registered owner’s attorney duly authorized in writing, and thereupon a new registered bond or bonds in the same aggregate principal amount and of the same maturity shall be issued to the transferee in exchange therefor as provided in the resolution authorizing this bond and upon the payment of the charges, if any, therein prescribed.

This bond is payable out of the Issuer’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 and the series of bonds of which this is one, 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 Issuer, including this bond, does not exceed any constitutional, statutory or charter debt limitation.

This bond is not valid or obligatory for any purpose until the Transfer Agent’s Certificate of Authentication on this bond has been executed by the Transfer Agent.

IN WITNESS WHEREOF, the Issuer, by its legislative body, has caused this bond to be signed in the name of the Issuer by the facsimile signatures of its Mayor and Clerk and a facsimile of its corporate seal to be printed hereon, all as of the Date of Original Issue.

CITY OF MIDLAND

Counties of Midland and Bay

State of Michigan

By____________________________

Its Mayor

(SEAL)

By____________________________

Its City Clerk

 


(Form of Transfer Agent’s Certificate of Authentication)

CERTIFICATE OF AUTHENTICATION

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

_______________

_______________, Michigan,

Transfer Agent

By ______________________

   Authorized ___________

DATE OF REGISTRATION:

[Bond printer to insert form of assignment]

          7.       The City Finance Director or Clerk shall (1) make requisite application to the Department of Treasury for an order granting permission for the issuance of the Bonds or, if applicable make requisite application to the Department of Treasury for an order approving an exception to the requirement of an order granting permission for the issuance of the Bonds; (2) upon receipt of said order fix a date of sale for the Bonds; and (3) publish notice of sale of the Bonds in the Detroit Legal News, Detroit, Michigan, or the Bond Buyer, New York, New York, which notice of sale shall be in substantially the following form subject to such changes as may be necessary to effect the purchase of municipal bond insurance:

OFFICIAL NOTICE OF SALE

$15,800,000

CITY OF MIDLAND

Counties of Midland and Bay, State of Michigan

 GENERAL OBLIGATION UNLIMITED TAX BONDS

SERIES 2001

SEALED BIDS for the purchase of the above bonds will be received by the undersigned at the City Clerk’s office located at 333 W. Ellsworth Street, Midland, Michigan 48641, on __________, the ____ day of ____, 2001, until ____ o’clock p.m., Eastern Standard Time, at which time and place said bids will be publicly opened and read.  Sealed bids will also be received simultaneously and publicly opened and read at the offices of The Municipal Advisory Council of Michigan, 1445 First National Building, Detroit, Michigan 48226-3517.  The City Council will meet at 7:00 o’clock p.m., on that date at the above address to consider the award or rejection of bids.

BOND DETAILS:  Said bonds will be registered bonds of the denomination of $5,000 or multiples thereof not exceeding for each maturity the maximum principal amount of that maturity, originally dated April 1, 2001, numbered in order of registration, and will bear interest from their date payable on November 1, 2001, and semiannually thereafter.

The bonds will mature on the 1st day of May of each of the years, as follows:

$ 175,000

2002

$  800,000

2012

400,000

2003

  850,000

2013

425,000

2004

  900,000

2014

475,000

2005

  950,000

2015

525,000

2006

1,000,000

2016

550,000

2007

1,075,000

2017

600,000

2008

1,150,000

2018

650,000

2009

1,225,000

2019

700,000

2010

1,300,000

2020

750,000

2011

1,300,000

2021

BOOK-ENTRY ONLY:  The bonds will be issued in book-entry-only form as one fully registered bond per maturity and will be registered in the name of Cede & Co., as bondholder and nominee for The Depository Trust Company (“DTC”), New York, New York.  DTC will act as securities depository for the bonds.  Purchase of the bonds will be made in book-entry-only form, in the denomination of $5,000 or any multiple thereof.  Purchasers will not receive certificates representing their interest in bonds purchased.  The book-entry-only system is described further in the preliminary Official Statement for the bonds.

TERM BONDS: The initial purchaser of the bonds may designate any one or more maturities from May 1, 2012 through the final maturity as term bonds and the consecutive maturities which shall be aggregated in the term bonds.  Any such designation must be made within twenty-four hours of the sale.

PRIOR REDEMPTION:  Bonds of this issue maturing in the years 2002 to 2010, inclusive, are not subject to redemption prior to maturity.  Bonds or portions of bonds in multiples of $5,000 maturing in the year 2011 and thereafter may be redeemed at the option of the Issuer, in such order as the Issuer shall determine and within any maturity by lot, on any interest payment date on or after May 1, 2010 at par and accrued interest to the date fixed for redemption.

Notice of redemption of any bond or portion thereof shall be given by the Transfer Agent at least thirty (30) days prior to the date fixed for redemption by mail to the registered owner at the registered address shown on the registration books kept by the transfer agent.  Bonds shall be called for redemption in multiples of $5,000 and any bond of a denomination of more than $5,000 shall be treated as representing the number of bonds obtained by dividing the denomination of the bond by $5,000 and such bond may be redeemed in part.  Notice of redemption for a bond redeemed in part shall state that upon surrender of the bond to be redeemed a new bond or bonds in aggregate principal amount equal to the unredeemed portion of the bonds surrendered shall be issued to the registered owner thereof.  No further interest on a bond or portion thereof called for redemption shall accrue after the date fixed for redemption, whether presented for redemption or not, provided funds are on hand with the transfer agent to redeem the bond or portion thereof.

MANDATORY REDEMPTION:  The amounts of bond maturities which are aggregated in a designated term bond shall be subject to mandatory redemption of May 1st of the years and in the amounts set forth in the maturity schedule set forth above at par, plus accrued interest to the date of mandatory redemption

INTEREST RATE AND BIDDING DETAILS:  The bonds shall bear interest at a rate or rates not exceeding 7% per annum, to be fixed by the bids therefor, expressed in multiples of 1/8 or 1/20 of 1%, or both.  The interest on any one bond shall be at one rate only and all bonds maturing in any one year must carry the same interest rate.  The difference between the highest and lowest interest rates bid shall not exceed 2.5%.  No proposal for the purchase of less than all of the bonds or at a price less than 99% of their par value will be considered.  INTEREST RATES BORNE BY THE BONDS MATURING IN ANY ONE YEAR SHALL NOT BE LESS THAN THE INTEREST RATE BORNE BY BONDS MATURING IN THE PRECEDING YEAR. 

TRANSFER AGENT AND REGISTRATION:  Principal and interest shall be payable at __________________, ________, Michigan, or such other transfer agent as the City of Midland (the “Issuer”) may hereafter designate by notice mailed to the registered owner of record not less than 60 days prior to an interest payment date.  Interest shall be paid by check or draft mailed to the registered owner of record as shown on the registration books kept by the transfer agent as of the 15th day prior to an interest payment date.  The bonds will be transferred only upon the registration books of the Issuer kept by the transfer agent.

PURPOSE AND SECURITY:  The bonds were authorized at an election held February 22, 2000, and are issued for the purpose of paying the cost of public improvements.  The bonds will pledge the full faith and credit of the Issuer for payment of the principal and interest thereon and will be payable from ad valorem taxes which may be levied without limitation as to rate or amount.  The rights or remedies of bondholders may be affected by bankruptcy insolvency, fraudulent conveyance or other laws affecting creditors’ rights generally now existing or hereafter enacted and by the application of general principles of equity including those relating to equitable subordination.

GOOD FAITH:  A certified or cashier’s check drawn upon an incorporated bank or trust company or a Financial Surety Bond, in the amount of $158,000, and payable to the order of the Treasurer of the Issuer is required for each bid as a guarantee of good faith on the part of the bidder, to be forfeited as liquidated damages if such bid be accepted and the bidder fails to take up and pay for the bonds.  If a check is used, it must accompany each bid.  If a Financial Surety Bond is used, it must accompany each bid.  If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such bond in the State of Michigan and such Bond must be submitted to the Issuer’s financial advisor at least one hour prior to the opening of the bids.  The Financial Surety Bond must identify each bidder whose good faith deposit is guaranteed by such Financial Surety Bond.  If the bonds are awarded to a bidder utilizing a Financial Surety Bond, then the purchaser is required to submit its good faith deposit to the Issuer in the form of a cashier’s check (or wire transfer such amount as instructed by the Issuer or its financial advisor) not later than Twelve o’clock, Noon, prevailing Eastern Time, on the next business day following the award.  If such good faith deposit is not received by that time, the Financial Surety Bond may be drawn by the Issuer to satisfy the good faith deposit requirement.  The good faith deposit will be applied to the purchase price of the bonds.  In the event the purchaser of the bonds fails to honor its accepted bid, the good faith deposit will be retained by the Issuer.  No interest shall be allowed on the good faith checks, and checks of the unsuccessful bidders will be promptly returned to each bidder’s representative or by registered mail.  The good faith check of the successful bidder may be immediately cashed, in which event payment for the balance of the purchase price of the bonds shall be made at the closing.

AWARD OF BONDS:  The bonds will be awarded to the bidder whose bid produces the lowest interest cost computed by determining, at the rate or rates specified in the bid, the total dollar value of all interest on the bonds from ___________ 1, 2001, to their maturity and deducting therefrom any premium and adding thereto any discount.

MICHIGAN REVENUE SHARING AND PROPERTY TAX REFORM:  (TO BE SUPPLIED)

TAX MATTERS:  In the opinion of bond counsel, assuming compliance with certain covenants, interest on the bonds is excluded from gross income for federal income tax purposes as described in the opinion, and the bonds and interest thereon are exempt from all taxation in the State of Michigan except inheritance taxes and taxes on gains realized from the sale, payment or other disposition thereof.  The successful bidder will be required to furnish, prior to the delivery of the bonds, a certificate in a form acceptable to bond counsel as to the “issue price” of the bonds within the meaning of Section 1273 of the Internal Revenue Code of 1986.

NOT QUALIFIED TAX EXEMPT OBLIGATION:  The Issuer will not designate the bonds as a “qualified tax exempt obligation” for purposes of deduction of interest by financial institutions.

LEGAL OPINION:  Bids shall be conditioned upon the unqualified approving opinion of Miller, Canfield, Paddock and Stone, P.L.C., attorneys of Detroit, Michigan, a copy of which opinion will be printed on the reverse side of each bond and the original of which will be furnished without expense to the purchaser of the bonds at the delivery thereof.  The fees of Miller, Canfield, Paddock and Stone, P.L.C. for services rendered in connection with such approving opinion are expected to be paid from bond proceeds.  Except to the extent necessary to issue its unqualified approving opinion as to validity of the above bonds, Miller, Canfield, Paddock and Stone, P.L.C. has not been requested to examine or review and has not examined or reviewed any financial documents, statements or materials that have been or may be furnished in connection with the authorization, issuance or marketing of the bonds, and accordingly will not express any opinion with respect to the accuracy or completeness of any such financial documents, statements or materials.

DELIVERY OF BONDS:  The Issuer will furnish bonds ready for execution at its expense.  Bonds will be delivered without expense to the purchaser at a place to be agreed upon.  The usual closing documents, including a certificate that no litigation is pending affecting the issuance of the bonds, will be delivered at the time of delivery of the bonds.  If the bonds are not tendered for delivery by twelve o’clock noon, Eastern Standard Time, on the 45th day following the date of sale, or the first business day thereafter if said 45th day is not a business day, the successful bidder may on that day, or any time thereafter until delivery of the bonds, withdraw its proposal by serving notice of cancellation, in writing, on the undersigned in which event the Issuer shall promptly return the good faith deposit.  Payment for the bonds shall be made in Federal Reserve Funds.  Accrued interest to the date of delivery of the bonds shall be paid by the purchaser at the time of delivery.  Unless the purchaser furnishes the transfer agent with a list giving the denominations and names in which it wishes to have the certificates issued at least 5 business days prior to the delivery of the bonds, the bonds will be delivered in the form of a single certificate for each maturity registered in the name of the purchaser.

CUSIP NUMBERS:  It is anticipated that CUSIP identification numbers will be printed on the bonds, but neither the failure to print such numbers on any bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the bonds in accordance with terms of the purchase contract.  All expenses in relation to the printing of CUSIP numbers on the bonds shall be paid for by the Issuer; provided, however, that the CUSIP Service Bureau charge for the assignment of such numbers shall be the responsibility of and shall be paid for by the purchaser.

FINANCIAL CONSULTANT:  Further information concerning the bonds may be secured from Stauder, Barch & Associates, Inc., 3989 Research Park Drive, Ann Arbor, MI 48108, FAX: (734)668-6723, TELEPHONE NO.: 734-668-6688 financial consultant to the Issuer.

OFFICIAL STATEMENTS:  A copy of the Official Statement relating to the Bonds may be obtained by contacting Stauder, Barch & Associates, Inc. at the address referred to above.  The Official Statement is in a form deemed final by the Issuer for purposes of paragraph (b)(1) of SEC Rule 15c2-12 (the “Rule”), but is subject to revision, amendment and completion in a final Official Statement.

After the award of the bonds, the Issuer will provide on a timely basis a reasonable number of a final Official Statement, as that term is defined in paragraph (e)(3) of the rule, at the expense of the Issuer (and such additional copies of the final Official Statement as reasonably requested by, and at the expense of, the successful bidder or bidders) to enable the successful bidders or bidders to comply with paragraph (b)(4) of the Rule and the rules of the Municipal Securities Rulemaking Board.  Requests for such additional copies of the final Official Statement shall be made to Stauder, Barch & Associates, Inc. at the above address within 24 hours of the award of the bonds.

CONTINUING DISCLOSURE:  As described more fully in the Official Statement, the Issuer will agree to provide or cause to be provided, in accordance with the requirements of Rule 15c2-12 (the “Rule”) promulgated by the Securities and Exchange Commission, (i) on or prior to the last day of the sixth month after the end of the fiscal year of the Issuer, commencing with the fiscal year ended June 30, 2001, certain annual financial information and operating data, including audited financial statements for the preceding fiscal year, (or if audited financial statements are not available, unaudited financial statements) generally consistent with the information contained or cross-referenced in the Official Statement relating to the Bonds, (ii) timely notice of the occurrence of certain material events with respect to the Bonds and (iii) timely notice of a failure by the Issuer to provide the required annual financial information on or before the date specified in (i) above.

THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS.

ENVELOPES containing the bids should be plainly marked “Proposal for General Obligation Bonds.”

                                                                                 

City Clerk

           8.      The estimated period of usefulness of the proposed improvements are hereby declared to be not less than twenty-five (25) years and the cost of the Project cost is estimated to be not less than Fifteen Million Eight Hundred Thousand Dollars ($15,800,000).

           9.      The Issuer shall not invest, reinvest or accumulate any moneys deemed to be proceeds of the bonds pursuant to Sections 103(a) and 148 of the Internal Revenue Code of 1986, as amended, and the applicable regulations thereunder, in such a manner as to cause the bonds to be “arbitrage bonds” within the meaning of said Sections 103(a) and 148 and the applicable regulations thereunder.

          10.     The City covenants it shall comply with the requirements of Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) regarding continuing disclosure.  The City Finance Director be and is hereby designated as the City’s disclosure representative pursuant to the Rule and is directed to provide both the continuing disclosure undertaking and annual disclosure required by the Rule.

          11.     All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.   (Motion adopted.)

 

Value Engineering Report on Sewer System Improvements

Noel Bush, Director of Utilities, presented an overview of the Value Engineering Report.  Jim Pollack, 1420 Whitehall, spoke in support of the project outcome and the assigning of a full-time inspector to monitor the project.  The following resolution was then offered by Council Member McKeag and seconded by Council Member Currie:

 

WHEREAS, the City of Midland retained the services of Rama Rao & Alfred, Inc. of Detroit, Michigan to provide value engineering services for the sanitary sewer system improvements; and

WHEREAS, the City retained the services of Ayres, Lewis, Norris & May, Inc. of Ann Arbor, Michigan to provide the design engineering for the sanitary sewer system improvements; and

WHEREAS, the value engineering report by Rama Rao & Alfred, Inc. for review of the preliminary design is complete following the review and consideration of issues discussed with City staff and design engineers; and

WHEREAS, Ayres, Lewis, Norris & May has incorporated the recommendations of the value engineering study in the sanitary sewer system design and submitted the design to the Michigan Department of Environmental Quality; now therefore

RESOLVED, that the January 31, 2001 Value Engineering Report prepared by Rama Rao & Alfred is hereby received and placed on file in the office of the City Clerk and the Grace A. Dow Memorial Library.  (Motion adopted.)

 

2001 Annual Sidewalk Report

The following resolution was offered by Council Member Wazbinski and seconded by Council Member McKeag:

 

RESOLVED, that in accord with Section 22-17 of the Code of Ordinances, the 2001 Annual Sidewalk Report is hereby received and is ordered filed in the City Clerk's Office.  (Motion adopted.)

 

Cable Access Advisory Commission – Resignation of April Douglass

The following resolution was offered by Council Member Wazbinski and seconded by Council Member McKeag:

 

RESOLVED, that the resignation of April Douglass as a member of the Cable Access Advisory Commission is hereby accepted and the Administration is directed to convey the Council’s appreciation to Ms. Douglass for her service on this important Commission; and

RESOLVED FURTHER, that the Administration is directed to advertise for applicants to complete the unexpired term.  (Motion adopted.)

 

Ameritech Agreement for CompleteLink Program

Mike Meyer, Purchasing Agent, presented information on the proposed agreement with Ameritech for discounted services under the CompleteLink Program.  The following resolution was then offered by Council Member McKeag and seconded by Council Member Wazbinski:

 

WHEREAS, the City has previously had a calling plan contract with Ameritech for local telecommunications service and in-state toll calls that has recently expired; and

WHEREAS, Ameritech has offered a new plan called CompleteLink to replace the previous program covering the same services; and

WHEREAS, the new plan is anticipated to save the City approximately $19,000 over the next three years by discounting said services and lowering the in-state per minute call charges, based upon a minimum annual revenue commitment of $50,000; now therefore

RESOLVED, that the requirement of sealed proposals is hereby waived under Section 2-18 of the Midland Code of Ordinances, and a three-year contract with Ameritech for said services pursuant to the CompleteLink plan is hereby approved; and

RESOLVED FURTHER, that the Mayor and City Clerk are hereby authorized to execute a contract with Ameritech for said services.  (Motion adopted.)

 


Utility License Agreement – Members First Credit Union

The following resolution was offered by Council Member Wazbinski and seconded by Council Member McKeag:

 

RESOLVED, that the attached Telecommunications License Agreement from the City of Midland to Members First Credit Union for the purpose of installing and maintaining an overhead fiber optic system between their offices at 600 West Wackerly Street and 617 Bayliss Street, both located within the City of Midland, is hereby granted and ordered recorded; and

RESOLVED FURTHER, that the Mayor and City Clerk are hereby authorized to execute the license agreement on behalf of the City of Midland.  (Motion adopted.)

 

Utility License Agreement – C2C Fiber, Inc.

The following resolution was offered by Council Member Wazbinski and seconded by Council Member McKeag:

 

RESOLVED, that the attached Telecommunications License Agreement from the City of Midland to C2C Fiber, Inc. for the purpose of installing and maintaining an underground and overhead fiber optic system and for uses as intended in the license agreement, is hereby granted and ordered recorded; and

RESOLVED FURTHER, that the Mayor and City Clerk are hereby authorized to execute the license agreement on behalf of the City of Midland.  (Motion adopted.)

 

Zoning Petition No. 475

The following resolution was offered by Council Member Wazbinski and seconded by Council Member McKeag:

 

RESOLVED, that notice is hereby given that a public hearing will be held by the City Council on Monday, March 19, 2001, at 7:00 p.m. in the Council Chambers, City Hall, for the purpose of considering the advisability of amending the Zoning Map of Ordinance No. 727, the Zoning Ordinance of the City of Midland, as set forth in the following proposed Ordinance, which is hereby introduced and given first reading; and

RESOLVED FURTHER, that the City Clerk is hereby directed to mail notice of said public hearing to owners of real property originally notified of the Planning Commission public hearing on this matter.

ORDINANCE NO. ______

AN ORDINANCE TO AMEND ORDINANCE NO. 727, BEING AN ORDINANCE TO REGULATE AND RESTRICT THE LOCATION OF TRADES AND INDUSTRIES AND THE LOCATION OF BUILDINGS DESIGNED FOR SPECIFIC USES, TO REGULATE AND LIMIT THE HEIGHT AND BULK OF BUILDINGS HEREAFTER ERECTED OR ALTERED, TO REGULATE AND DETERMINE THE AREA OF YARDS, COURTS, AND OTHER OPEN SPACES SURROUNDING BUILDINGS, TO REGULATE AND LIMIT THE DENSITY OF POPULATION, AND FOR SAID PURPOSES, TO DIVIDE THE CITY INTO DISTRICTS AND PRESCRIBE PENALTIES FOR THE VIOLATION OF ITS PROVISIONS BY AMENDING THE ZONING MAP TO PROVIDE A RESIDENTIAL A-1 ZONING CLASSIFICATION WHERE TOWNSHIP ZONING PRESENTLY EXISTS.

The City of Midland Ordains:

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

That property described as: Commencing at a point 804 feet South of the West 1/4 corner of Section 31, T15N, R2E, Larkin Township, Midland County, Michigan, thence East 300 feet; thence North 240 feet, more or less, to a point located 748 feet North of the South 1/8 line of said Section 31; thence West 300 feet; thence South to the Point of Beginning, and

That property described as:  Commencing 396 feet East of the West 1/4 corner of Section 31, T15N, R2E, Larkin Township, Midland County, Michigan; thence East 1634 feet along the East and West 1/4 line; thence South 604.00 feet; thence South 88° 06’ 05” West 300.16 feet; thence South 691.62 feet, more or less, to the South 1/8 line of said Section 31; thence West 1430 feet along said South 1/8 line; thence North 748 feet; thence West 300 feet; thence North 229.21 feet; thence East 396 feet; thence North 330 feet to the Place of Beginning.  EXCEPT, commencing 330 feet South of the West 1/4 corner of Section 31, T15N, R2E; thence East 396 feet; thence South 165 feet; thence West 396 feet; thence North 165 feet to the Point of Beginning,

be, and the same is hereby changed to a Residential A-1 District.

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

Section 3.  This Ordinance shall take effect upon publication.  (Motion adopted.  Considered first reading.)

 

NEW BUSINESS

Set special meeting for May 14, 2001, at 7:00 p.m. to interview candidates for 2001 Boards and Commissions.

 

Set a special closed meeting for February 26, 2001, at 4:00 p.m. to receive the Quarterly Report on Pending Litigation.

 

Being no further business the meeting adjourned at 8:48 p.m.

 

 

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            Sandy Marshall, Deputy City Clerk