January 14, 2002

 

A regular meeting of the City Council was held on Monday, January 14, 2002, at 7:00 p.m. in the Council Chambers of City Hall.  Mayor Pro-tem Wazbinski presided.  The Pledge of Allegiance to the Flag was recited in unison.

 

Council members present:

Mary Currie, Daryl Griggs, Hollis McKeag, Marty Wazbinski

Council members absent:

Drummond Black (excused)

 

Minutes

Approval of the minutes of the December 17, 2001 regular meeting was offered by Council Member Currie and seconded by Council Member Griggs.  (Motion adopted.)

 

Zoning Petition No. 480

Jon Lynch, Director of Planning and Community Development, presented information on Zoning Petition No. 480 – rezoning property on the south side of Isabella Street west of Vance Road from Residential A-1 and Agricultural to Business B-2.  A public hearing opened at 7:11 p.m.  Thomas McCann, 3310 Jefferson Avenue, petitioner, spoke in support of the rezoning.  The hearing closed at 7:14 p.m.  The following ordinance amendment was then offered by Council Member Currie and seconded by Council Member McKeag:

 

ORDINANCE NO. 1520

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 BUSINESS B-2 ZONING CLASSIFICATION WHERE RESIDENTIAL A-1 AND AGRICULTURAL 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 the Northeast corner of Section 24, T14N, R1E, City of Midland, Midland County, Michigan; thence 780 feet West along the North Section line to the point of beginning; thence South 388 feet; thence West 160 feet; thence North 388 feet to the North Section line; thence East 160 feet to the point of beginning; and

That property described as: Beginning 660 feet West and 430 feet South of the Northeast corner of Section 24, T14N, R1E, City of Midland, Midland County, Michigan; thence South 113 feet; thence West 447 feet; thence North 113 feet; thence East 447 to the point of beginning;

     be, and the same is hereby changed to a Business B-2 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.  (Ordinance adopted.)

 

PUBLIC COMMENTS

Charles Hepenstal, 1317 North Parkway, commented on the open meetings act and what he considered the Council’s evasion of the act.  Mr. Hepenstal referred to individual phone calls made by Council members prior to Council’s appointment of one of its members to the MBS International Airport Commission.

 

P.I.L.O.T. for Chippewassee Court Phase I 

Robert Fisher, Director of Fiscal Services, presented information on the first reading of an ordinance that would amend Chapter 2, Article XIII, of the City Code of Ordinances to provide a Payment in Lieu of Taxes for Chippewassee Court Phase I.  William Doxie, Development Coordinator of the non-profit Michigan Capital Fund for Housing, was present to answer questions and support the project.  Derwin Bass, 4406 Hampshire, President of the Affordable Housing Alliance, spoke in support of the project.  Tom McCann, 3310 Jefferson Avenue, stated he was not against helping low income residents, but questioned the need for additional units in the City of Midland and the administration of these units by private for profit organizations.   Karl Tomion, City Manager, indicated management would be glad to sit down with Mr. McCann and go over the request from the Affordable Housing Alliance.  Council Member Griggs, a board member of the Affordable Housing Alliance, requested that he be allowed to abstain from voting on this issue.  Council unanimously agreed to the abstention.  Introduction and first reading of the following ordinance amendment was then offered by Council Member Currie and seconded by Council Member McKeag:

 

ORDINANCE NO. __________

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 2-260.8 AND 2-264.6, 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, Granite Club Acres #1, CHIPPEWASSEE COURT PHASE I and the elderly portions of Charter Square and Green Hill are of this class.

Section 2.  Article XIII, Sections 2-260.8 and 2-264.6 are hereby added to read as follows:

Sec. 2-260.8.  CHIPPEWASSEE COURT PHASE 1.

    THE CITY ACKNOWLEDGES THAT THE AFFORDABLE HOUSING ALLIANCE OF MIDLAND COUNTY, A 501(c)(3) CORPORATION (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 CHIPPEWASSEE COURT PHASE 1, LOCATED ON THE FOLLOWING DESCRIBED PROPERTY:

BEGINNING AT A POINT ON THE SOUTH LINE OF SECTION 18, T14N, R2E, 137.10 FEET WEST OF THE WEST 1/8 CORNER, THENCE NORTH AND PARALLEL TO THE WEST 1/8 LINE 150.90 FEET; THENCE WEST 97.45 FEET; THENCE NORTH 129.10 FEET, MORE OR LESS TO THE SOUTH LINE OF CONE’S SUBDIVISION, THENCE WEST 274.6 FEET ALONG THE SOUTH LINE OF CONE’S SUBDIVISION; THENCE SOUTH 280 FEET, MORE OR LESS TO THE SOUTH LINE OF SECTION 18; THENCE EAST ALONG SAID LINE 372.9 FEET TO THE PLACE OF BEGINNING, BEING A PART OF THE SOUTHWEST ¼ OF THE SOUTHWEST ¼ OF SECTION 18, T14N, R2E, EXCEPT BEGINNING 137.10 FEET WEST OF THE WEST 1/8 CORNER ON THE SOUTH LINE OF SECTION 18, T14N, R2E, CITY OF MIDLAND, MIDLAND COUNTY, MICHIGAN; THENCE NORTH AND PARALLEL TO SAID 1/8 LINE 150.90 FEET; THENCE WEST AND PARALLEL TO SAID SOUTH SECTION LINE 240 FEET; THENCE SOUTH AND PARALLEL TO SAID 1/8 LINE 150.90 FEET; THENCE EAST 240 FEET TO THE POINT OF BEGINNING.

Sec. 2-264.6.  ESTABLISHMENT OF ANNUAL SERVICE CHARGE FOR CHIPPEWASSEE COURT PHASE I.

(A)    ANNUAL SERVICE CHARGE.  THE HOUSING DEVELOPMENT IDENTIFIED AS CHIPPEWASSEE COURT PHASE I 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.  (Motion adopted.  Considered first reading.  Yeas:  Currie, McKeag, Wazbinski   Nays:  None   Abstained:  Griggs)

 

West Main Street Historic District Commission Appointment

Jack Duso, Assistant City Manager, presented information on the appointment to the West Main Street Historic District Commission.  The following resolution was then offered by Council Member Currie and seconded by Council Member Griggs:

 

RESOLVED, that Karen Sherman is hereby appointed as the Architect Representative member to the West Main Street Historic District Commission to fill an unexpired term expiring June 30, 2002, to be effective immediately.  (Motion adopted.)

 

Saginaw-Midland Municipal Water Supply System Board Appointment

Jack Duso, Assistant City Manager, presented information on the appointment to the Saginaw-Midland Municipal Water Supply System Board.  Council interviewed two candidates to represent the City of Midland as its Business Representative on the Board.  The following resolution was then offered by Council Member Currie and seconded by Council Member Griggs:

 

RESOLVED, that William Lauderbach is hereby appointed as a Business Representative member to the Saginaw-Midland Municipal Water Supply System Board to fill an unexpired term expiring December 31, 2004, to be effective immediately.  (Motion adopted.)

 


Traffic Control Order No. S-01-04

The following resolution was offered by Council Member Currie and seconded by Council Member Griggs:

 

WHEREAS, Traffic Control Order No. S-01-04 was filed October 2, 2001; and

WHEREAS, this Traffic Control Order has a 90 day trial period beginning on the date of filing; and

WHEREAS, this trial period has expired as of Tuesday, January 8, 2002; now therefore

RESOLVED, that the trial period for this Traffic Control Order be extended 14 days; and

RESOLVED FURTHER, that this extension will allow City Council to consider Traffic Control Order S-01-04 to be made permanent; and

RESOLVED FURTHER, that Traffic Control Order S-01-04 pursuant to Chapter 24 of the Code of Ordinances to establish traffic control as follows:

That Scenic Drive yield to Stillwater Lane.

is hereby made permanent.  (Motion adopted.)

 

Traffic Control Order No. S-01-05

The following resolution was offered by Council Member Currie and seconded by Council Member Griggs:

 

WHEREAS, Traffic Control Order No. S-01-05 was filed on October 2, 2001; and

WHEREAS, this Traffic Control Order has a 90 day trial period beginning on the date of filing; and

WHEREAS, this trial period has expired as of Tuesday, January 8, 2002; now therefore

RESOLVED, that the trial period for this Traffic Control Order be extended 14 days; and

RESOLVED FURTHER, that this extension will allow City Council to consider Traffic Control Order S-01-05 to be made permanent; and

RESOLVED FURTHER, that Traffic Control Order No. S-01-05 pursuant to Chapter 24 of the Code of Ordinances to establish traffic control as follows:

That Schade Drive West stop for W. Wackerly Street.

is hereby made permanent.  (Motion adopted.)

 

Traffic Control Order No. P-01-09

The following resolution was offered by Council Member Currie and seconded by Council Member Griggs:

 

RESOLVED, that Traffic Control Order No. P-01-09 filed September 10, 2001 pursuant to Chapter 24 of the Code of Ordinances to establish traffic control as follows:

That parking be prohibited on Madison Street, Burch Street, Soper Street and Forest Street.

is hereby made permanent.  (Motion adopted.)

 

Revised Easement Agreement – Sanitary Sewer Pump Station on E. Ashman

The following resolution was offered by Council Member Currie and seconded by Council Member Griggs:

 

RESOLVED, that the attached Easement Agreement from Nicolaos A. Rapanos, Elaine D. Rapanos, Jason L. Rapanos, and Christine N. Rapanos to the City of Midland, for the installation of a new sanitary sewer pump station on the north side of E. Ashman Street east of Waldo Avenue to an area at the South 40 feet of the East 30 feet of Lot 1 of Longfellow Subdivision of the West ½ of the West ½ of the Southwest ¼ of Section 12, Township 14 North, Range 2 East, is hereby accepted and that the easement is ordered recorded.  (Motion adopted.)

 

Park Name Change – Shipps Family Park

The following resolution was offered by Council Member Currie and seconded by Council Member Griggs:

 

WHEREAS, the City of Midland owns property on N. Saginaw Road near Wheeler Street, known as Wheeler Park; and

WHEREAS, a citizen has requested that the City consider changing the name of the park from Wheeler Park to Shipps Family Park; and

WHEREAS, research has shown that a portion of the property was in fact donated by the Shipps family, the property served at one time as the Shipps family farm and Guy Shipps was active in recreational and community causes for over forty one years; and

WHEREAS, the Parks and Recreation Commission unanimously voted at their November 2001 meeting to recommend that Wheeler Park be renamed the Shipps Family Park; now therefore

RESOLVED, that the City Council hereby changes the name of Wheeler Park to Shipps Family Park.  (Motion adopted.)

 

Auction – Surplus Computer Items

The following resolution was offered by Council Member Currie and seconded by Council Member Griggs:

 

WHEREAS, the City has surplus computer items that have been removed from service and are no longer of use to City operations; now therefore

RESOLVED, that under the provisions of Section 2-24 of the Midland Code of Ordinances, authorization is given to sell such items at public auction on Saturday, January 26, 2002 with the proceeds being deposited in the Data Processing Rental Fund, Sale of Assets account.  (Motion adopted.)

 

Payment – Appraisal Services (Dow Chemical Assessment Appeal)

The following resolution was offered by Council Member Currie and seconded by Council Member Griggs:

 

WHEREAS, The Dow Chemical Company has appealed the assessed and taxable value for three individual parcels for the 1999, 2000 and 2001 tax years with the Michigan Tax Tribunal with case numbers of 270871, 270872 and 270873; and

WHEREAS, the appraisal firm of Terzo & Bologna, Inc. is both qualified and available to perform the necessary appraisals on these three isolated parcels of property owned by The Dow Chemical Company; and

WHEREAS, as of this date the Michigan Tax Tribunal has not allowed a consolidation of these three separate parcels with the main tax appeal case as filed by The Dow Chemical Company; and

WHEREAS, additional services, specifically litigation support, of Terzo & Bologna, Inc. is now necessary; and

WHEREAS, sufficient budgetary funding exists within the 2001-2002 Appraisal Fees budget for The Dow Chemical Company tax appeal cases; now therefore

RESOLVED, that the above-referenced services are hereby determined to be professional services within the meaning of Section 2-19 of the Code of Ordinances and do not require sealed proposals; and

RESOLVED FURTHER, that in accord with Section 2-19 of the Code of Ordinances of the City of Midland, the City Manager is hereby authorized to execute a contract with the appraisal firm of Terzo & Bologna, Inc. for its assistance in the aforementioned appeal in an amount not to exceed $25,000.  (Motion adopted.)

 

Payment - Legal Services (Dow Corning & Dow Chemical Tax Appeals)

The following resolution was offered by Council Member Currie and seconded by Council Member Griggs:

 

WHEREAS, the Dow Corning Corporation appealed the 1996, 1997, 1998, 1999, 2000 and 2001 assessments and taxable values of certain property it owns in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, The Dow Chemical Company appealed the 1997, 1998, 1999, 2000 and 2001 assessments and taxable values of certain property it owns in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, the law firm of Miller, Canfield, Paddock & Stone has been utilized in assisting the City of Midland in its defense of said appeals; and

WHEREAS, on March 5, 2001, Council authorized payments to Miller, Canfield, Paddock & Stone for the aforementioned services in a total amount not to exceed $2,180,000; and

WHEREAS, the cost of continuing said legal services is expected to exceed the previously approved amount and therefore approval of the City Council is required under Section 2-18 of the Code of Ordinances; now therefore

RESOLVED, that said services are hereby determined to be professional services within the meaning of Section 2-19 of the Code of Ordinances and do not require sealed proposals; and

RESOLVED FURTHER, that payment to the law firm of Miller, Canfield, Paddock & Stone for its legal assistance in connection with the aforementioned appeals is hereby authorized in a total amount not to exceed $2,845,000; and

RESOLVED FURTHER, that the Director of Fiscal Services is hereby authorized to transfer $18,140 within the 2001-2002 General Fund budget from the Legal Fees account in the Dow Corning Corporation Tax Appeal activity to the Legal Fees account in The Dow Chemical Tax Appeal activity.  (Motion adopted.)

 

Payment – Appraisal Services (Dow Corning & Dow Chemical Tax Appeals)

The following resolution was offered by Council Member Currie and seconded by Council Member Griggs:

 

WHEREAS, the Dow Corning Corporation appealed the 1996, 1997, 1998, 1999, 2000 and 2001 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, 1998, 1999, 2000 and 2001 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 March 5, 2001, 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 $4,355,000; and

WHEREAS, the cost of continuing said services is expected to exceed the previously approved amount and therefore approval of the City Council is required under Section 2-18 of the Code of Ordinances; now therefore

RESOLVED, that said services are hereby determined to be professional services within the meaning of Section 2-19 of the Code of Ordinances and do not require sealed proposals; and

RESOLVED FURTHER, 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 appeals is hereby authorized in an amount not to exceed $5,105,000; and

RESOLVED FURTHER, that the Director of Fiscal Services is hereby authorized to transfer $229,000 within the 2001-2002 General Fund budget from the Legal Fees account in the Dow Corning Corporation Tax Appeal activity to the Appraisals account in the Dow Corning Corporation Tax Appeal activity.  (Motion adopted.)

 

Proposed 2001-02 Budgets & Financial Working Plans Amendment

The following resolution was offered by Council Member Currie and seconded by Council Member Griggs:

 

RESOLVED, that in accord with Section 11.6 of the Charter of the City of Midland, a public hearing shall be conducted at 7:00 p.m., Monday, January 28, 2002 in the Council Chambers of City Hall on the proposal to amend the budgets of the General Fund, Major Street Fund, Local Street Fund, Grace A. Dow Library Fund and Downtown Development Authority Fund for the 2001-2002 fiscal year, and to amend the financial working plans of the Landfill Fund, Washington Woods Fund, Riverside Place Fund, Golf Course Fund, Wastewater Fund, Water Fund, Data Processing Operations Fund, Data Processing Rental Fund, Equipment Revolving Fund, Service Center Rental Fund and Health Care Plan Fund for the 2001-2002 fiscal year to reduce revenue from investment earnings, and to reduce expenditures as follows:

 

 

AMOUNT OF DECREASE

GENERAL FUND REVENUE:

 

  Investment Earnings

$  750,000

 

 

GENERAL FUND EXPENDITURES:

 

  Dow Corning Tax Appeal Legal Fees

$  450,000

  Transfers to Library Fund

    300,000

     Total

$  750,000

 

 

INVESTMENT EARNINGS REVENUE IN THE FOLLOWING FUNDS:

 

  Major Street Fund

$   27,500

  Local Street Fund

       7,500

  Grace A. Dow Library Fund

       9,500

  Downtown Development Authority Fund

       9,500

  Landfill Fund

     48,500

  Washington Woods Fund

       7,500

  Riverside Place Fund

       5,500

  Golf Course Fund

     10,500

  Wastewater Fund

     24,000

  Water Fund

   141,000

  Data Processing Operations Fund

     16,500

  Data Processing Rental Fund

       6,500

  Equipment Revolving Fund

     46,500

  Service Center Rental Fund

       7,000

  Health Care Plan Fund

     55,500

 

AMOUNT OF DECREASE

LIBRARY FUND REVENUE:

 

  Transfers from General Fund

$300,000

(Motion adopted.)

 

Being no further business the meeting adjourned at 8:15 p.m.

 

 

______________________________________

            Penny K. Kovacevich, City Clerk