May 10, 2004

A regular meeting of the City Council was held on Monday, May 10, 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 April 26, 2004 regular meeting was offered by Councilman Myers and seconded by Councilman McKeag. (Motion adopted.)

Councilman Rokosz requested Agenda Item 12a, Utilities Summary Report for Smoke Testing, be removed from the consent agenda.

2004 SIDEWALK IMPROVEMENT PROGRAM HEARING OF NECESSITY

City Engineer Brian McManus presented a report on the 2004 Sidewalk Improvement Program. A public hearing was opened at 7:15 p.m. William Johnson, 3545 E. Ashman Street, spoke in opposition to sidewalk on the north side of E. Ashman Street from Waldo Avenue to Stratford Woods Drive. Sheila Mesler, 2049 E. Dublin Road and representing Bennett Construction, spoke in opposition to sidewalk on Cinema Drive and Joe Mann Boulevard until development in that area has been completed. She encouraged the City to explore more easement options along the abandoned Service Drive to the Midland Cinemas. James Morgan, 1900 Oakfield Drive, spoke in support of sidewalk in the mall area. He also encouraged painted crosswalks for pedestrians and bicyclists. Mike Pnacek, 3820 Blackhurst Drive, spoke in opposition to sidewalk on Joseph Drive and submitted a written letter stating his objections. Sharon Coleman, guardian to a handicapped individual residing at the Village of Joseph’s Run, spoke in support of sidewalks on Joseph Drive and around the mall area. Lois Debrosse, 3820 Boston Street, who has employees who assist individuals living at the Village of Joseph’s Run, spoke in support of sidewalk on Joseph Drive and in the mall area. Ruthann Hair, 1428 E. Carpenter Street, representing People First, spoke in support of sidewalks in the mall area. Jennifer Adamcik, 4016 E. St. Andrews Road, spoke in support of sidewalk on the east side of St. Andrews Road. Nick Rapanos, 1400 Avalon Drive, spoke in opposition to sidewalk on E. Ashman Street. The public hearing closed at 7:36 p.m. Council agreed to remove the order for sidewalk on the north side of E. Ashman Street from Waldo Avenue to Stratford Woods Drive and postponed action on Foster Road sidewalk until a question about a previously granted sidewalk installation extension for Foster Road sidewalk could be clarified by City Attorney James O. Branson, III. The following resolution was then offered by Councilman McKeag and seconded by Councilman Johnson:

WHEREAS, the City Council has ordered due notice of its intention to construct sidewalks in certain streets, said streets being listed as follows:

Cinema Drive (east side) from Joe Mann Blvd to 780 feet south

Eastman Avenue (west side) from end of existing walk to north line of Section 32

Gary Street (south and west side) from Dawn Drive to end of existing walk

Joseph Drive (south side) from Jefferson Avenue to Midfield Lane

Joe Mann Boulevard (south side) from Eastman Avenue to Jefferson Avenue

St. Andrews Road (east side) from St. Andrews Road to Plymouth Street

and has heretofore established one special assessment district which is to be known as the “2004 SIDEWALK IMPROVEMENT SPECIAL ASSESSMENT DISTRICT” and has heretofore ordered due notice that it would meet on the 10th day of May, 2004, for the purpose of hearing and considering any objections or suggestions on the proposed sidewalk improvements; and

WHEREAS, the City Council has met pursuant to said notice on said day at the time specified in said notice and has heard and considered all objections and suggestions to the proposed sidewalk improvement program; now therefore

RESOLVED, that the necessary plans and specifications contained in the City Manager’s report of April 12, 2004, on file in the office of the City Clerk be and the same hereby are approved; and

RESOLVED FURTHER, that a special assessment district for the purpose of said combined improvements be and hereby is approved to be known as the “2004 SIDEWALK IMPROVEMENT SPECIAL ASSESSMENT DISTRICT” and that said district comprises and includes the foregoing described lands and premises; and

RESOLVED FURTHER, that the detailed estimate of cost of said improvements in said district is hereby approved in the amount of one hundred eighty-one thousand five hundred twenty-two and 75/100 dollars ($181,522.75); and

RESOLVED FURTHER, that the proportion of the cost and expense of said improvement to be borne and paid for by the General fund shall be seventy-nine thousand one hundred one and 75/100 dollars ($79,101.75) and that all other costs and expenses of said improvement amounting to one hundred two thousand four hundred twenty-one dollars ($102,421) shall be borne and paid by special assessment on all lands and premises in said Special Assessment District as heretofore established and approved; and

RESOLVED FURTHER, that the Council hereby determines that the installation of sidewalk in the herein listed streets are necessary public improvements, conducive to the public health and general welfare of the people of the City of Midland, and that the City Council proceed to construct said sidewalks in accordance with the plans and specifications, adopted for the same, and in accordance with the resolutions heretofore adopted by the Council in regard to said proposed sidewalk improvements; and

WHEREAS, the Council is desirous of affording the several owners of property located on the above described street the opportunity of causing their own sidewalks to be constructed at their own expense; now therefore

RESOLVED FURTHER, that the City Council does hereby determine that all sidewalks to be constructed by property owners shall be completed on or before July 31, 2004, and that an agreement must be executed by each property owner wishing to install their own sidewalks, in a form acceptable to the City Attorney, which guarantees completion of the sidewalks by no later than July 31, 2004, and that said agreement is received by City Council for approval at their June 14, 2004, meeting; and

RESOLVED FURTHER, subject to the qualification set forth in the immediately preceding paragraph of this resolution, that all sidewalks not being completed by the property owners, shall be constructed by the City of Midland, the cost thereof to be financed by special assessments to be levied against the several properties so affected in accordance with the Special Assessment Ordinance; and

RESOLVED FURTHER, that the City Assessor of said City be and hereby is directed to prepare and report to the City Council a Special Assessment Roll, for said “2004 SIDEWALK IMPROVEMENT SPECIAL ASSESSMENT DISTRICT”, as heretofore established by the Council, and to assess and levy upon the several lots and premises remaining in said district, said sums of money in proportion to the estimated benefits resulting thereto from said improvement, computed as near as practicable on a front foot basis. (Motion adopted.)

2004-05 PROPOSED BUDGET

City Controller David Keenan reviewed information and dates related to the adoption of the 2004-05 budget. He reviewed the General Operating Fund budget cuts proposed by City staff at the May 3^rd budget work session that would reduce overall expenditures by $1 million in the 2004-05 proposed City budget. The second public hearing on the proposed budget was opened at 8:08 p.m. Sheldon Mitchell, 6906 N. Saginaw Road, spoke regarding the proposed budget. Fran Hamburg, 315 W. Meadowbrook Drive, spoke in opposition to Council putting off expenses to future budgets. James Orlando, 5003 Butterfield Drive, spoke in support of the 2004-05 budget as submitted by the City Manager and in support of maintaining the quality of our city and the services provided by the City of Midland. Richard McCreadie, 2700 Washington Street, spoke in opposition to cutting the budget for the sake of cutting the budget. The public hearing closed at 8:45 p.m. The following resolution was then offered by Councilman Johnson and seconded by Councilman Myers:

RESOLVED, that City staff is hereby directed to implement the proposed General Operating Fund budget cuts for the 2004-05 budget as presented to Council on May 10, 2004 and as outlined in the summary report to Manager dated May 10, 2004 as Agenda Item No. 3 from City Controller David A. Keenan. (Motion adopted. Yeas: Johnson, Myers, Rokosz Nays: Black, McKeag)

ZONING PETITION NO. 507

City Planner Mark Ostgarden presented information on Zoning Petition No. 507 and 510 to rezone properties at 7501 and 7505 Perrine Road from Township Zoning to Residential A-1. The public hearing opened at 9:11 p.m. Ralph Stiles, 1889 N. Perrine Road, spoke regarding Zoning Petition No. 507. John Miller, 1993 N. Perrine Road, inquired about the number of units being constructed. City Planner Mark Ostgarden reported 64 units were planned. The hearing closed at 9:15 p.m. The following ordinance amendment was then offered by Councilman McKeag and seconded by Councilman Rokosz:

ORDINANCE NO. 1576

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 WHERE A TOWNSHIP ZONING DISTRICT 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:

THE SOUTHEAST ¼ OF THE NORTHWEST ¼ OF SECTION 31 TOWN 15 NORTH, RANGE 2 EAST, LARKIN TOWNSHIP, MIDLAND COUNTY, MICHIGAN, EXCEPT THE EAST 250 FEET.

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

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.)

ZONING PETITION NO. 508

City Planner Mark Ostgarden presented information on Zoning Petition No. 508 to rezone property at 6700 N. Saginaw Road from Township Zoning to Business B-2. The public hearing opened at 9:18 p.m. Sheldon Mitchell, 6906 N. Saginaw Road, asked for clarification on the zoning and how it is proposed to change. The clarification was provided by City Planner Mark Ostgarden. The hearing closed at 9:25 p.m. The following ordinance amendment was then offered by Councilman McKeag and seconded by Councilman Rokosz:

ORDINANCE NO. 1577

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 WHERE A TOWNSHIP ZONING DISTRICT 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:

Commencing 694 feet South of the North 1/8 corner of the West line of Section 1 T14N, R1E, Homer Township, Midland County, Michigan, thence East (South 89 degrees 43 minutes East) 165 feet; thence North 34 feet; thence East (South 89 degrees 43 minutes East) 171.67 feet; thence South 355.33 feet to the North Right of Way Line of Saginaw Road; thence Northwesterly (North 56 degree 39 minutes 32 seconds West) 402.99 feet along said Right of Way Line to the West Section Line; thence North 101.50 feet along the West Section Line to the Place of Beginning.

be, and the same is hereby changed to Business B-2.

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.)

ZONING PETITION NO. 509

City Planner Mark Ostgarden presented information on Zoning Petition No. 509 to rezone property at 4208 E. Wheeler Street from Township Zoning to Agricultural and Zoning Petition No. 511 to rezone property at 7221 Jefferson Avenue from Township Zoning to Residential B. The public hearing opened at 9:28 p.m., recognizing no comments, the hearing closed at 9:29 p.m. The following ordinance amendment was then offered by Councilman McKeag and seconded by Councilman Rokosz:

ORDINANCE NO. 1578

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 AN AGRICULTURAL ZONING WHERE A TOWNSHIP ZONING DISTRICT 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:

SECTION 12 T14N R2E COMMENCING 290 FEET EAST OF NORTH ¼ CORNER THEN SOUTH 196 FEET, EAST 180 FEET, NORTH 196 FEET, WEST 180 FEET.

be, and the same is hereby changed to Agricultural.

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.)

ZONING PETITION NO. 510

The public hearing on Zoning Petition No. 510 was conducted with Zoning Petition No. 507. The following ordinance amendment was offered by Councilman McKeag and seconded by Councilman Rokosz:

ORDINANCE NO. 1579

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:

SECTION 31, T15N R2E COMMENCING 1,014.48 FEET SOUTH OF THE NORTH ¼ CORNER THEN SOUTH 289.74 FEET, NORTH 89 DEGREES 26 MINUTES WEST 310 FEET, NORTH 289.62 FT, SOUTH 89 DEGREES 27 MINUTES EAST 310 FEET.

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

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.)

ZONING PETITION NO. 511

The public hearing on Zoning Petition No. 511 was conducted with Zoning Petition No. 509. The following ordinance amendment was offered by Councilman McKeag and seconded by Councilman Rokosz:

ORDINANCE NO. 1580

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 B ZONING WHERE A TOWNSHIP ZONING DISTRICT 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:

THE SOUTH ½ OF THE NORTHEAST ¼ OF SECTION 33, TOWN 15 NORTH, RANGE 2 EAST, LARKIN TOWNSHIP, MIDLAND COUNTY, MICHIGAN, EXCEPT BEGINNING AT THE NORTHEAST CORNER OF THE SOUTH ½ OF THE NORTHEAST ¼ OF SECTION 33, THEN WEST 528 FEET, THEN SOUTH 165 FEET; THEN EAST 528 FEET; THEN NORTH 165 FEET TO THE PLACE OF BEGINNING; AND EXCEPT COMMENCING AT A POINT 600 FEET NORTH OF THE EAST ¼ CORNER OF SECTION 33, T15N, R2E, THEN NORTH 290 FEET ALONG THE EAST SECTION LINE; THEN WEST 450 FEET; THEN SOUTH 290 FEET; THEN EAST 450

be, and the same is hereby changed to Residential B.

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.)

2003-04 GENERAL FUND BUDGET AMENDMENT

Director of Public Services Martin McGuire presented information on a General Fund budget amendment to recognize a $32,000 revenue and expenditure for the construction of a bicycle motocross track. The public hearing opened at 9:32 p.m. Sheldon Mitchell, 6906 N. Saginaw Road, spoke in support of the motocross track and inquired about City of Midland liability coverage for the track. Director of Public Services Martin McGuire spoke on the liability coverage. The following resolution was offered by Councilman Myers 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 on Monday, May 10, 2004, on the proposal to amend the 2003-04 General Fund Budget to recognize unanticipated revenues in the form of donations from the Midland Area Community Foundation and the Midland County Youth Action Council of $32,000 and the unanticipated expenses related to the construction of a bicycle motocross track in Stratford Woods Park; now therefore

RESOLVED, that the 2003-04 General Fund Budget is hereby amended to increase revenues by $32,000 to recognize gifts from the Midland Area Community Foundation and the Midland County Youth Action Council and to increase expenses by $32,000 related to the construction of a bicycle motocross track at Stratford Woods Park. (Motion adopted.)

PUBLIC COMMENTS

No public comments were made.

REPORT ON COMMUNITY MEETING ON DIOXIN

City Clerk/Community Relations Coordinator Selina Tisdale reviewed the City’s plans to hold a community meeting on dioxin soil testing in Midland. The community meeting is scheduled for Wednesday, May 26, 2004, at 7:00 p.m. at the Midland Center for the Arts. Paula Jurado, 4623 Washington Street, inquired about the ability to ask questions at the community meeting. City Manager Karl Tomion indicated there would be limited time for questions from the audience following the initial question and answer session. The following resolution was then offered by Councilman Myers and seconded by Councilman Johnson:

RESOLVED, that Midland City Council hereby receives and files the staff report on holding a community meeting on dioxin soil testing in Midland. (Motion adopted.)

SITE PLAN NO. 239 – WAL-MART GAS STATION

City Planner Mark Ostgarden presented Site Plan No. 239, a revised site plan for a Murphy Oil Fueling Station on the Wal-Mart store site. Jim Vitter of Kimley-Horn and Associates and Tom Bentley, representing Murphy Oil USA, spoke regarding the site plan and answered City Council questions. The following resolution was then offered by Councilman McKeag and seconded by Councilman Myers:

WHEREAS, the City Council has received the recommendation of the City Planning Commission for approval of Site Plan No. 239, , the request of Joe Kaltsas on behalf of Kimley-Horn and Associates, Chicago, IL for the Murphy Oil USA, to construct a gas station with six fueling islands on .61 acres located at the southwest corner of the Wal-Mart store site on the north side of Joe Man Boulevard; and

WHEREAS, a revised site plan dated May 5, 2004 was submitted reducing the gas station size to four fueling stations on .48 acres of land; and

WHEREAS, the City Council has reviewed the revised site plan in accord with the provisions set forth in Sections 25.3 and 25.4 of the Zoning Ordinance of the City of Midland; now therefore

RESOLVED, that the City Council does hereby approve the revised Site Plan No. 239 dated May 5, 2004, contingent upon the following:

1. Site storm water plans must be approved by the City of Midland Engineering Department.

2. Site access shall be redesigned in accord with the traffic engineer recommendation and construction completed prior to the gas station being open for business.

3. Sidewalks are installed prior to opening.

4. Dumpster enclosure will be screened with opaque vegetation and evergreens.

5. Dumpster enclosure will have a wooden opaque gate.

6. Relocate the ATM to the easterly end of the concrete island.

(Motion adopted.)

UTILITIES SUMMARY REPORT – SMOKE TESTING PHASE OF I & I REMOVAL

Utilities Director Noel Bush presented a report on the Utilities Department’s smoke testing of the City’s sewers to identify and alleviate inflow and infiltration opportunities. The following resolution was then offered by Councilman Rokosz and seconded by Councilman Myers:

RESOLVED, that the City Council hereby receives and files the Utilities Summary Report of the smoke testing phase of inflow and infiltration removal. (Motion adopted.)

2004 SEWER SEPARATION PROGRAM; CONTRACT NO. 10

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

WHEREAS, sealed proposals have been advertised and received in accord with Article II of Chapter 2 of the Midland Code of Ordinances for the installation of six separate storm sewer extensions to remove storm water currently flowing into the sanitary sewer system; and

WHEREAS, funding for this project is provided by the Stormwater Management Fund; now therefore

RESOLVED, that the low sealed proposal submitted by Sterling Excavation, Inc. of West Branch, Michigan, for the "2004 Sewer Separation Program; Contract No. 10", in the indicated amount of $73,918.20, based upon City estimated quantities is hereby accepted and the Mayor and the City Clerk are authorized to execute a contract therefore in accord with the proposal and the City's specifications; and

RESOLVED FURTHER, that the City Manager has the authority to approve change orders modifying or altering this contract in an aggregate amount not to exceed $20,000. (Motion adopted.)

LAND LEASE AGREEMENT FOR BARSTOW AIRPORT

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

WHEREAS, a report has been received from the City Engineer indicating that a lease agreement has been reached with the Midland Agricultural and Horticultural Society to lease approximately 17.6 acres of land at Jack Barstow Airport; and

WHEREAS, the Midland Agricultural and Horticultural Society will conduct the Midland County Fair related activities on said premises; and

WHEREAS, the lease agreement has an initial term of 30 years; and

WHEREAS, the lease agreement rent is based on a parcel value of $600,000 multiplied by a capitalization rate with adjustments of a five year cycle; and

WHEREAS, the Federal Aviation Administration has released the City of Midland of its obligations to maintain said land parcel as airport property; and

WHEREAS, the City of Midland will use financial proceeds from said land lease for operations, maintenance and development of the airport; and

WHEREAS, the City Attorney has reviewed and approved said lease; now therefore

RESOLVED, that the lease agreement between the City of Midland and the Midland Agricultural and Horticultural Society is hereby approved and the Mayor and City Clerk are authorized to sign said land lease agreement. (Motion adopted.)

STATEMENT OF INVESTMENT POLICY – POST EMPLOYMENT HEALTH CARE FUND

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

WHEREAS, the City Council has previously approved creation of the City of Midland Post-employment Health Care Fund for the purpose of pre-funding anticipated retiree health care insurance premium costs; and

WHEREAS, the City Council has also approved appointment of a 5-person Board of Trustees to act as fiduciary for purposes of administering the investments of said Fund in accordance with the Public Employee Health Care Fund Investment Act and the Public Employee Retirement System Investment Act; and

WHEREAS, said Board of Trustees has prepared and approved a Statement of Investment Policy for this purpose; now therefore

RESOLVED, that the Statement of Investment Policy of the City of Midland Post-employment Health Care Fund dated April 23, 2004 is hereby approved, to permit the investment of the assets of said Fund in accordance with the provisions of Public Act 149 of 1999 and Public Act 314 of 1965, as amended. (Motion adopted.)

TRAFFIC CONTROL ORDER S-03-12

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

RESOLVED, that Traffic Control Order No. S-03-12 filed December 29, 2003 pursuant to Chapter 24 of the Code of Ordinances to establish traffic control as follows:

That Wildwood Street shall yield to Lamplighter Lane.

is hereby made permanent. (Motion adopted.)

ARTIST MARKET IN THE FARMERS MARKET FACILITY

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

RESOLVED, that the City Council hereby approves the request of the Downtown Development Authority to hold an Artists Market in the Farmers Market facility from noon to 7:00 p.m. on June 10, July 8 and August 12, 2004, with the condition that the attached Agreement, drafted by the City Attorney, be executed and submitted to the City Manager’s Office no less than five business days prior to the June 10 Artists Market; and

RESOLVED FURTHER, that the Administrative Staff is hereby authorized to approve future requests if conducted in substantially the same manner. (Motion adopted.)

LANDFILL CELL 1-13 CLOSURE; CHANGE ORDER #1

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

WHEREAS, in September 2000 the City entered into a contract with William E. Lang Contracting of Beaverton, Michigan for vegetative soil and topsoil placement for closure of Cells 1-13 at the Landfill, at a cost of $462,544.00; and

WHEREAS, State of Michigan regulatory compliance projects interfered with the contractor’s construction progress until 2003; and

WHEREAS, settling of decomposing waste buried in Cells 1-13 resulted in increased volumes of soil placement for closure at a cost of $66,783.90, and the two year delay resulted in an additional net cost increase of $11,370.00 due to material costs and changes to site conditions; and

WHEREAS, funds are available within the 2003/04 Landfill budget to transfer in the amount $78,153.90 for the purposes of said change order request; now therefore

RESOLVED, budget transfer in the amount of $78,153.90 from capital account #517-9120-912.97-65 – New Cell Development #15 to capital account #517-9120-912.97-65 – Cells 1-13 Closure is hereby approved; and

RESOLVED FURTHER, that Change Order #1 to increase the existing purchase order in the amount of $78,153.90 is hereby approved, bringing the final contract amount to $540,697.90. (Motion adopted.)

PAYMENT FOR LEGAL & ENVIRONMENTAL CONSULTING SERVICES – DIOXIN ISSUES

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

WHEREAS, the law firm of Miller, Canfield, Paddock & Stone and the environmental consulting firm of Fishbeck, Thompson, Carr & Huber, Inc. have been retained by the City of Midland. These firms have been retained to assist the City in reviewing The Dow Chemical Company’s revised Scope of Work and the Interim Response Activities relating to the dioxin issues with the Michigan Department of Environmental Quality to determine the impact on both public and private property within the City of Midland; and

WHEREAS, the cost of said legal and consulting fees is will exceed $20,000.00 and therefore approval of the City Council is required under Section 2-18 of the Code of Ordinances; and

WHEREAS, sufficient budgetary funding exists within the 2003-2004 General Fund budget; and

WHEREAS, 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; now therefore

RESOLVED, that the Director of Fiscal Services is hereby authorized to transfer $180,000 within the 2003-2004 General Fund budget from the Reserve for Contingencies account to the Legal Fees account; and

RESOLVED FURTHER, that payment to the law firm of Miller, Canfield, Paddock & Stone and the environmental consulting firm of Fishbeck, Thompson, Carr & Huber, Inc. for their assistance in connection with the aforementioned lawsuit is hereby authorized in an amount not to exceed $180,000. (Motion adopted.)

PROPOSED STREET NAME CHANGE – DIAMOND DRIVE TO SOCCER DRIVE

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

WHEREAS, the City Council has received the recommendation of the City Planning Commission for approval of the proposed street name change of Diamond Drive to Soccer Drive on that segment from Jefferson Avenue to the intersection of the new Joseph Drive extension; now therefore

RESOLVED, the City Council does hereby set the date of June 14, 2004, for a public hearing to take place at 7:00 p.m. in the Council Chambers, City Hall, Midland, Michigan, and the City Clerk is hereby directed to transmit notice on May 28, 2004 and to publish said notice on May 29, 2004. (Motion adopted.)

PROPOSED 2003-04 GENERAL FUND BUDGET AMENDMENT

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

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. on June 14, 2004 in the Council Chambers at City Hall on the proposal to amend the 2003-04 General Fund budget to increase revenues to recognize a grant of $11,923.00 from the U.S. Department of Justice, Bureau of Assistance, Local Law Enforcement Block Grant to purchase public safety equipment for the Midland Police Department and to increase expenditures by $11,923.00 to allow for the purchases. (Motion adopted.)

SHOW CAUSE HEARING – REVOCATION OF KOKOPELLI’S LIQUOR LICENSE

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

WHEREAS, the liquor license held by Kokopelli’s was placed in escrow with the Michigan Liquor Control Commission on November 7, 2001 and has remained in escrow since that time; and

WHEREAS, Section 15-253 (7) of the Code of Ordinances requires the City Manager to initiate the process to recommend revocation of said license six (6) months prior to the third consecutive anniversary of the date the license was placed in escrow; and

WHEREAS, said liquor license holder was notified of the ordinance requirement to initiate the revocation process if the license is not activated prior to the end of the third consecutive year of escrow in a letter dated February 18, 2003 and subsequently informed in a letter dated April 16, 2004; and

WHEREAS, said license holder has not responded to a request in the April 16, 2004 letter that the license holder notify the City Manager’s office not later than Thursday, May 6, 2004 indicating if and when the license will be activated prior to November 7, 2004; and

WHEREAS, in accord with Section 15-253 (7) of the Code of Ordinances the City Manager is required to initiate the revocation process six months prior to November 7, 2004; and

WHEREAS, it is the City Manager’s recommendation to revoke said license for the reason that no correspondence has been received in answer to requests by the City Manager to provide information as to when and if the license will be activated prior to November 7, 2004, which is considered non-use of the liquor license, and as a result the license holder will be in violation of Section 15-253 (7) on November 7, 2004; now therefore

RESOLVED, that a show cause hearing is hereby scheduled for 7:00 p.m. on Monday, June 28, 2004 in the Council Chambers at City Hall for the purpose of providing said liquor license holder and/or his representative an opportunity to present evidence and testimony, question any adverse witnesses and to show cause why the City Council should not approve the recommendation of the City Manager; and

RESOLVED FURTHER, that in accord with Section 15-254 of the Code of Ordinances the City Manager is hereby authorized and directed to notify the owner of the Kokopelli’s liquor license of the scheduled show cause hearing. (Motion adopted.)

SPECIAL MEETING WITH AUDITORS

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

RESOLVED, that a special meeting of the Midland City Council shall be held at 6:00 p.m. on Monday, June 28, 2004, at City Hall for the purpose of meeting with the Council’s auditors, Plante and Moran, CPA’s. (Motion adopted.)

Being no further business the meeting adjourned at 10:20 p.m.

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Selina Tisdale, City Clerk