January 12, 2004

A regular meeting of the City Council was held on Monday, January 12, 2004, 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, Bruce Johnson, Hollis McKeag, James Myers, Joseph Rokosz
Councilmen absent:	None

MINUTES

Approval of the minutes of the December 15, 2003 regular and special, December 18, 2003 special, and both January 6, 2004 special meetings was offered by Councilman Myers and seconded by Councilman McKeag. (Motion adopted.)

PARKS AND RECREATION COMMISSION - CIVIC ARENA RECOMMENDATION

Department of Public Services Director Martin McGuire reviewed the Civic Arena report and recommendation approved by the Parks and Recreation Commission, which recommends that staff proceed to design and bid a $10.3 million three-rink facility for construction on a site near Bay City Road and Rockwell Drive and budget for the demolition of the existing facility at a cost of $200,000.

A public hearing was opened at 7:07 p.m. The following persons spoke in support of the proposal: William Bartlett, 807 Hollybrook Drive and Chairman of Fast Ice, Inc. Mr. Bartlett presented 632 signatures of ice users in support of the proposal; Richard Payne, 968 S. Meridian Road, Chairman of Midland Silver Stick Hockey; Curt Peterson, 2000 Candlestick Lane; Wayne Winslow, 807 Coolidge, President of Midland Speed Skating Association; Richard Rautanen, Chairman of the Midland Convention and Visitors Bureau; Paul Loebig, 1709 Dilloway Drive; James Peckrul, Executive Director of Midland County Convention and Visitors Bureau; Dennis Easter, 1906 E. Letts Road; Dottie Lengerman, 405 E. Nelson, member of the Parks and Recreation Commission; Cameron Knowles, 126 Campbell Court, Public Relations Director for the Saginaw Spirit Hockey League; Ann Ward, 5712 Windy Gyle, representing Midland Figure Skating Club; James Orlando, 5003 Butterfield Drive; Fran Kinney, 5601 Pine Meadow Drive; David Rapanos, 5903 Wildflower Court; J. Thomas Ferrell, 2307 Westbury Drive; Katharine Rings, 5006 Foxpoint Circle; Richard Blasy, Jr., 1708 Bauss Court; Jane Watkins, 2288 N. Woodland Estates Drive, Secretary/Treasurer of Fast Ice, Inc.; William Witt, 4208 Arlington Drive, Midland Amateur Hockey League.

The following persons spoke in opposition to the proposal: Paula Jurardo, 4623 Washington Street; Dave Schafer, 725 E. Wheeler Street, owner of Midland Roll Arena; Charles Hepenstal, 1317 N. Parkway; Richard McCreadie, 2700 Washington Street, Thomas Neuenfeldt, 2747 E. Siebert Street.

The city received the following electronic comments regarding the Civic Arena proposal: Rebecca J. Evans, 4616 Congress Drive and Steven Drake, 5205 N. Perrine Road, in support of the proposal. Tracie Gratson, 3910 Salem Street, in opposition to the proposal. David Hintz, Sr., 324 Willow Court, in support of the proposal only if no taxpayer money was involved in the project. The hearing closed at 9:05 p.m.

The following resolution was then offered by Councilman McKeag and seconded by Councilman Johnson:

WHEREAS, the Parks and Recreation Commission and staff have studied the issues surrounding the Midland Civic Arena; and

WHEREAS, on August 11, 2003, the City Council received public input on the arena issues and directed the staff and Commission to formulate a recommendation; and

WHEREAS, the Parks and Recreation Commission voted 6-1 on November 11, 2003 to recommend that the renovations options be rejected and that staff be directed to design and bid on three rink facility for construction on a site near Bay City Road and Rockwell Drive; and

WHEREAS, the Commission further recommended that in the event the bids received cannot be supported by the funding recommended in the staff report of November 4, 2003, the architect would be directed to reduce the project to a two sheet configuration; now therefore

RESOLVED that the City Council hereby approves the recommendation of the Parks and Recreation Commission and directs staff to take the following action steps:

Solicit letters of commitment from local foundations to solidify the offers of $3.5 million if a two rink facility is built and $3.8 million if a three rink facility is constructed.
Confirm Fast Ice commitment to the increased ice rate as well as fundraising.
Confirm land donation on Bay City Road, precisely identify the site and attempt to obtain a land transfer agreement contingent on the award of this project.
Seek drawings for a three sheet facility from Siegal-Tuomaala at a cost of $255,000 with $205,000 (the amount estimated for designing a two sheet facility) coming from city funds set aside for the project and the remaining $50,000 coming from the ice-rental surcharge which has been designated for expansion or major repair. This configuration results in the users directly paying for the design of the third sheet.
Take necessary steps to prepare to bond the project. (Motion Adopted)

Mayor Black called for a short recess at 9:24 p.m.

The meeting resumed at 9:34 p.m.

2003 – 2004 EQUIPMENT REVOLVING FUND BUDGET AMENDMENT

Department of Public Services Director Martin McGuire presented information on a wrecked patrol car and budget amendment for the replacement of the vehicle, reflecting the revenue received from the insurance claim. A public hearing opened at 9:35 p.m., no comments were made, the hearing closed at 9:36 p.m. The following resolution was then offered by Councilman McKeag and seconded by Councilman Johnson:

WHEREAS, in accord with Sections 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, January 12, 2004, on the proposal to amend the 2003-04 financial working plan of the Equipment Revolving Fund to recognize the unanticipated expense of replacing police patrol unit #1-67 that was totaled in an accident in November and to recognize the resulting unanticipated revenue from insurance proceeds; now therefore

RESOLVED, that the 2003-04 financial working plan of the Equipment Revolving Fund is hereby amended to increase expenses by $22,000 for the purchase of a new police cruiser, and to increase revenues by $13,706 to recognize the insurance money recovered for the wrecked vehicle. (Motion adopted.)

PUBLIC COMMENTS

Oswald Anders, 801 Linwood Drive, Midland rental property owner, spoke in regard to the city’s Payment in Lieu of Taxes (PILOT) program. He also stated that he supported the Civic Arena proposal. Richard McCreadie, 2700 Washington Street, congratulated Councilman McKeag on his appointment to the MBS Board. He also shared his opinion the city uses too much salt during snow clearing operations.

ROLL ARENA LIQUOR LICENSE

Assistant City Manager Jack Duso presented information on the transfer of a Class C Liquor License from the Oil City Bar to the Midland Roll Arena. Roll Arena Owner and Manager David Schafer, 725 E. Wheeler Street, spoke on his plans for the establishment’s use of the liquor license. Richard Skochdopole, 2525 Lambros Drive, representing the Circle of Health Partnership, shared his concerns that the Roll Arena will not be able to successfully separate the youth skaters from the adult drinkers. Councilman McKeag then moved, seconded by Councilman Myers, to remove the resolution from the table. The following resolution was offered by Councilman McKeag and seconded by Councilman Myers:

RESOLVED, that the request from ROLL ARENA, INC. TO TRANSFER OWNERSHIP OF 2001 CLASS C LICENSED BUSINESS, LOCATED IN ESCROW AT 5480 W. ISABELLA, MT. PLEASANT, MI 48858, GREENDALE TOWNSHIP, MIDLAND COUNTY, FROM OIL CITY BAR, INC.; TRANSFER LOCATION (GOVERNMENTAL UNIT) (MCL 436.1531(1) TO 2909 BAY CITY, MIDLAND, MI 48642, MIDLAND COUNTY; AND REQUEST A NEW DANCE-ENTERTAINMENT PERMIT be considered for approval. (Motion adopted.)

MICHIGAN STATE PINTO BREEDERS & OWNERS – NON-PROFIT STATUS

The following resolution was offered by Councilman Myers and seconded by Councilman McKeag:

RESOLVED, that the request from Michigan State Pinto Breeders and Owners, Inc. of the City of Midland, county of Bay, asking that they be recognized as a nonprofit organization operating in the community for the purpose of obtaining a charitable gaming license, be considered for approval. (Motion adopted.)

GRANT ACCEPTANCE – U.S. OLYMPIC SOFTBALL TEAM

Director of Public Services Martin McGuire presented information on a generous $10,000 grant from the Midland Area Community Foundation for the City to use to bring the U.S. Olympic Softball Team to Midland in July 2004. The following resolution was then offered by Councilman McKeag and seconded by Councilman Myers:

WHEREAS, the City of Midland has been presented with an opportunity to host a tour stop on the U. S. Olympic Team’s “Aiming for Athens” tour; and

WHEREAS, the team expenses associated with a tour stop are $10,000; and

WHEREAS, the Midland Area Community Foundation has offered to donate $10,000 to the City for this purpose; now therefore

RESOLVED, that the City Council hereby accepts this generous offer of $10,000 and expresses its gratitude to the Midland Area Community Foundation. (Motion adopted.)

LIBRARY BOARD – RESIGNATION OF KATHLEEN MORTENSEN

The following resolution was offered by Councilman Myers and seconded by Councilman McKeag:

RESOLVED, that the resignation of Kathleen Mortensen as a member of the Library Board is hereby accepted and the Administration is directed to convey the Council’s appreciation to Ms. Mortensen for her service on this important Board. (Motion adopted.)

SALE OF SURPLUS COMPUTER EQUIPMENT

The following resolution was offered by Councilman Myers and seconded by Councilman McKeag:

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 24, 2004 with the proceeds being deposited in the Data Processing Computer Rental Fund, Sale of Assets account. (Motion adopted.)

DOW CHEMICAL – RENAISSANCE ZONE AGMT (request to extend siting deadline)

City Manager Karl Tomion presented information on the City’s involvement in developing a Renaissance Zone to help The Dow Chemical Company in siting a new plant in the City of Midland. Mr. Tomion explained why Dow would like the City’s support in requesting an extension on the siting deadline. Mark Recker, 2352 Woodland Estates Drive, Tax Attorney with Dow Chemical, spoke on the need for the siting deadline extension and encouraged Council’s support. Jenee Velasquez, 208 Sylvan Lane, Executive Director of the Midland Economic Development Council, spoke in support of the extension. The following resolution was then offered by Councilman McKeag and seconded by Councilman Johnson:

WHEREAS, the City of Midland desires to site a new performance chemical plant in the City of Midland for The Dow Chemical Company; and

WHEREAS, on November 14, 2002, the City entered into a Renaissance Zone Agreement to provide financial incentives to bring this plant to Midland; and

WHEREAS, this Renaissance Zone Agreement required The Dow Chemical Company to make a siting decision by December 31, 2003; and

WHEREAS, the City of Midland has subsequently received a request from The Dow Chemical Company requesting that the siting decision date be extended to March 31, 2005; now therefore

RESOLVED, that the Midland City Council hereby directs the City Manager and City Attorney to submit a letter to the Michigan Economic Development Corporation recommending the extension of the siting decision to March 31, 2005; and

RESOLVED FURTHER, that the City Attorney and City Manager be authorized to approve an amendment to the Agreement consistent with this extension. (Motion adopted.)

IFT TRANSFER REQUEST – ICM SYSTEMS, LLC

The following resolution was offered by Councilman Myers and seconded by Councilman McKeag:

RESOLVED, that an application dated December 8, 2003 was received December 8, 2003 from ICM Systems, LLC with supporting data pursuant to Public Act 198 of the Public Acts of the State of Michigan of 1974, as amended, for the transfer of industrial facilities exemption certificate number 96-331 from Ingersoll CM Systems, Inc. to ICM Systems, LLC within the MCEDC Industrial Park Industrial Development District No. 1 relating to the transfer of an existing certificate as the result of the property at 3505 Centennial Drive being purchased by ICM Systems, LLC on July 10, 2003 is hereby acknowledged received and ordered placed on file in the City Clerk's office; and

RESOLVED FURTHER, a hearing shall be held before the City Council on Monday, January 26, 2004, at 7:00 p.m., in the Council Chambers at City Hall, 333 W. Ellsworth Street, Midland, Michigan, for the purpose of affording the applicant, the City Assessor and representatives of the affected taxing units an opportunity for a hearing on the application and the City Clerk shall provide written notice thereof in accordance with Section 5 of Public Act 198. (Motion adopted.)

BOARDS AND COMMISSIONS VACANCIES

City Manager Karl Tomion reviewed current vacancies on Midland’s boards and commissions. City Council directed staff to advertise these vacancies with the annual process for filling expiring terms beginning in March.

Being no further business the meeting adjourned at 10:28 p.m.

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Selina Tisdale, City Clerk