May 17, 2004

A regular meeting of the City Council was held on Monday, May 17, 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

Mayor Black opened the meeting with remarks and a moment of silence in recognition of the passing of former City of Midland Fire Chief Robert Fisher.

Councilman Rokosz asked that Item 10 be removed from the consent agenda.

Councilman McKeag asked that Item 9 be removed from the consent agenda.

MINUTES

Approval of the minutes of the May 3, 2004 special, May 10, 2004 special and regular meetings was offered by Councilman McKeag and seconded by Councilman Johnson. (Motion ADOPTED.)

MAKE MIDLAND BEAUTIFUL POSTERS

Administrative Assistant for Public Services Jan Yuergens, on behalf of the Beautification Advisory Committee of the Parks and Recreation Commission, introduced Maureen Donker, Bernadette VanSlyck, and Bobbie Arnold Co-chairs of the “2004 Make Midland Beautiful Art Celebration.” Seventeen elementary and middle school children were present and recognized for their works of art that depict, from their perspective, what makes Midland beautiful. Mayor Black, with the assistance of Co-chair Donker, VanSlyck, and Arnold, recognized each child.

MIDLAND BLOOMS DAY

Communications Coordinator Libby Richart introduced Jan McGuire, Chairperson for the 2004 Midland Blooms Day Project. Ms. McGuire gave a brief overview of the annual Midland Blooms Day project. The following resolution was then offered by Councilman McKeag and seconded by Councilman Myers:

RESOLVED, that the Mayor is authorized to issue the attached proclamation designating May 22, 2004 as Midland Blooms Day in Midland. (Motion ADOPTED.) Mayor Black presented Jan McGuire with the proclamation.

PUBLIC COMMENTS

No public comments were made.

2004-05 CITY OF MIDLAND BUDGET

Director of Fiscal Services Robert Fisher gave an overview of the proposed 2004-05 Budget process and the proposed millage rates. Larry Pillepich, 3602 McKeith Road, spoke regarding his desire to see city budgets maintain a steady slope or gradual increase versus dramatically decreasing or increasing the annual millage rate. The following resolution was then offered by Councilman McKeag and seconded by Councilman Myers:

WHEREAS, a public hearing on the 2004-2005 budget was held on Monday, May 10, 2004, at 7:00 p.m., in accord with Section 11.4 of the Charter of the City of Midland and State of Michigan Act 5, Public Acts of 1982, as amended; and

WHEREAS, MCL 211.44 permits local governments which administer property taxes to impose a Property Tax Administration Fee not to exceed one percent (1%) on taxes payable before February 15 of the succeeding year; and

WHEREAS, Section 12.17 of the Charter of the City of Midland requires the City Treasurer to add a four percent (4%) collection fee to all City taxes paid after the 15th day of September; and

WHEREAS, pursuant to MCL 211.44, as amended, the governing body must approve by resolution or ordinance an authorization for the imposition of a property tax administration fee, collection fee or any type of late penalty charge; and

WHEREAS, it is the desire of the governing body of the City of Midland to authorize the imposition of a one percent (1%) tax administration fee and a four percent (4%) late penalty collection fee to all applicable taxes levied by all taxing units and payable to the City of Midland; and

WHEREAS, the taxable value of real and personal property in the City of Midland has been determined to be $2,425,188,600 plus $73,771,850 of value on the Industrial Facilities Tax Roll; now therefore

RESOLVED, that the budget of the City of Midland for the fiscal year beginning July 1, 2004 and ending June 30, 2005 is hereby determined and adopted as follows:

GENERAL FUND
Sources of Funds:
Taxes	$24,112,336
State funds	3,568,000
Other revenues	4,249,420
Fund balance	6,654,910
Total Sources of Funds	$38,584,666
GENERAL FUND (continued)
Appropriations:
General programs	$32,552,245
Capital improvement	428,347
Transfers to other funds	5,254,074
Contingencies	350,000
Total Appropriations	$38,584,666
MAJOR STREET FUND
Sources of Funds:
State gas and weight tax	$2,678,000
Other revenues	567,745
Fund balance	563,147
Total Sources of Funds	$3,808,892
Appropriations:
Street maintenance	$ 1,398,730
Street construction	1,630,000
Transfers to other funds	760,162
Contingencies	20,000
Total Appropriations	$ 3,808,892
LOCAL STREET FUND
Sources of Funds:
State gas and weight tax	$ 741,600
Other revenues	656,000
Transfers from other funds	669,000
Fund balance	265,767
Total Sources of Funds	$2,332,367
Appropriations:
Street maintenance	$ 1,065,141
Street construction	1,053,000
Transfers to other funds	194,226
Contingencies	20,000
Total Appropriations	$ 2,332,367
STORMWATER MANAGEMENT FUND
Sources of Funds:
Transfer from other funds	$1,685,388
Other revenues	23,500
Fund balance	480,928
Total Sources of Funds	$2,189,816
STORMWATER MANAGEMENT FUND (continued)
Appropriations:
Storm sewer maintenance	$ 714,816
Construction	1,450,000
Contingencies	25,000
Total Appropriations	$ 2,189,816
GRACE A. DOW LIBRARY FUND
Sources of Funds:
Operating revenues	$ 311,124
State funds	60,000
Other revenues	387,277
Transfers from other funds	2,914,736
Total Sources of Funds	$ 3,673,137
Appropriations:
Operating expenditures	$ 3,604,737
Capital expenditures	68,400
Total Appropriations	$ 3,673,137
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
Sources of Funds:
Federal grants	$ 677,867
Program income	100,230
Fund balance	(374,867)
Total Appropriations	$ 403,230
Appropriations:
Residential home rehabs	$ 245,300
Other expenditures	147,930
Contingencies	10,000
Total Appropriations	$ 403,230
CABLE COMMUNICATIONS FUND
Sources of Funds:
Operating revenues	$ 467,000
Other revenues	4,248
Fund balance	103,017
Total Sources of Funds	$ 574,265
Appropriations:
Operating expenditures	$ 464,565
Capital expenditures	97,700
Contingencies	12,000
Total Appropriations	$ 574,265
DOWNTOWN DEVELOPMENT AUTHORITY FUND
Sources of Funds:
Property taxes	$ 414,500
Other revenues	30,500
Fund balance	202,288
Total Sources of Funds	$ 647,288
Appropriations:
Operating expenditures	$ 241,875
Transfers to other funds	185,413
Capital expenditures	205,000
Contingencies	15,000
Total Appropriations	$ 647,288
TRANSPORTATION (DIAL-A-RIDE) FUND
Sources of Funds:
Operating revenues	$ 830,848
Transfers from other funds	550,686
Total Sources of Funds	$ 1,381,534
Appropriations:
Operating expenses	$ 1,279,104
Other expenses	72,430
Capital expenses	20,000
Contingencies	10,000
Total Appropriations	$ 1,381,534
SPECIAL ACTIVITIES FUND
Sources of Funds:
Contributions and other	$ 381,000
Fund Balance	74,000
Total Sources of Funds	$ 455,000
Appropriations:
Capital expenditures	$ 435,000
Other expenditures	20,000
Total Appropriations	$ 455,000
HOUSING FUND
Sources of Funds:
Sale of assets and other	$ 204,000
Fund Balance	(24,000)
Total Sources of Funds	$ 180,000
Appropriations:
Cost of assets sold & other	$ 180,000
DEBT SERVICE FUND
Sources of Funds:
Property taxes	$ 1,599,300
Transfer from other funds	193,652
Fund balance	(2,159)
Total Sources of Funds	$ 1,790,793
Appropriations:
Transfer to Wastewater Fund	$ 1,790,793
DDA DEBT SERVICE FUND
Sources of Funds:
Transfers from other funds	$ 155,414
Appropriations:
Bond principal	$ 135,000
Bond interest & other	20,414
Total Appropriations	$ 155,414
SANITARY LANDFILL FUND
Sources of Funds:
Operating revenue	$ 2,942,000
Other revenue	66,000
Working capital	175,587
Total Sources of Funds	$ 3,183,587
Appropriations:
Operating expenses	$ 1,768,895
Other expenses	103,500
Capital expenses	1,261,192
Contingencies	50,000
Total Appropriations	$ 3,183,587
WASHINGTON WOODS FUND
Sources of Funds:
Operating revenues	$ 1,147,399
Other revenues	20,910
Working capital	28,062
Total Sources of Funds	$ 1,196,371
Appropriations:
Operating expenses	$ 1,103,654
Other expenses	69,717
Capital expenses	13,000
Contingencies	10,000
Total Appropriations	$ 1,196,371
RIVERSIDE PLACE FUND
Sources of Funds:
Operating revenues	$ 951,000
Other revenues	58,300
Working capital	89,368
Total Sources of Funds	$ 1,098,668
Appropriations:
Operating expenses	$ 1,017,668
Other expenses	61,000
Capital expenses	10,000
Contingencies	10,000
Total Appropriations	$ 1,098,668
GOLF COURSE FUND
Sources of Funds:
Operating revenues	$ 899,555
Other revenues	6,349
Working capital	(42,805)
Total Sources of Funds	$ 863,099
Appropriations:
Operating expenses	$ 829,099
Capital expenses	24,000
Contingencies	10,000
Total Appropriations	$ 863,099
PARKING FUND
Sources of Funds:
Operating revenues	$ 89,438
Other revenues	767
Transfers from other funds	30,000
Working capital	12,845
Total Sources of Funds	$ 133,050
Appropriations:
Operating expenses	$ 133,050
WASTEWATER FUND
Sources of Funds:
Operating revenues	$ 4,356,546
Transfers from other funds	1,790,793
Other revenues	21,320
Working capital	51,654
Total Sources of Funds	$ 6,220,313
WASTEWATER FUND (continued)
Appropriations:
Operating expenses	$ 2,882,959
Other expenses	159,025
Interest expense	819,769
Capital expenses	588,560
Retirement of debt	1,760,000
Contingencies	10,000
Total Appropriations	$ 6,220,313
WATER FUND
Sources of Funds:
Operating revenues	$ 8,245,440
Contractual revenue	1,134,549
Other revenues	92,519
Working capital	1,857,293
Total Sources of Funds	$11,329,801
Appropriations
Operating expenses	$ 5,637,062
Other expenses	347,000
Interest expense	836,740
Capital expenses	2,439,116
Retirement of debt	1,969,883
Contingencies	100,000
Total Appropriations	$ 11,329,801
DATA PROCESSING OPERATIONS
Sources of Funds:
Operating revenues	$ 964,000
Other revenues	9,774
Working capital	155,235
Total Sources of Funds	$ 1,129,009
Appropriations:
Operating expenses	$ 932,509
Other expenses	21,500
Capital expenses	150,000
Contingencies	25,000
Total Appropriations	$ 1,129,009
DATA PROCESSING RENTAL FUND
Sources of Funds:
Operating revenues	$ 221,525
Other revenues	5,134
Working capital	( 32,159)
Total Sources of Funds	$ 194,500
Appropriations:
Operating expenses	$ 119,500
Capital expenses	75,000
Total Appropriations	$ 194,500
EQUIPMENT REVOLVING FUND
Sources of Funds:
Operating revenues	$ 3,146,390
Other revenues	159,814
Working capital	170,703
Total Sources of Funds	$ 3,476,907
Appropriations:
Operating expenses	$ 2,213,145
Other expenses	166,062
Capital expenses	1,072,700
Contingencies	25,000
Total Appropriations	$ 3,476,907
SERVICE CENTER RENTAL FUND
Sources of Funds:
Operating revenues	$ 251,200
Other revenue	7,247
Working capital	(13,809)
Total Sources of Funds	$ 244,638
Appropriations:
Operating expenses	$ 199,638
Capital expenses	35,000
Contingencies	10,000
Total Appropriations	$ 244,638
PROPERTY AND LIABILITY INSURANCE FUND
Sources of Funds:
Operating revenues	$1,053,895
Working capital	14,870
Total Sources of Funds	$1,068,765
PROPERTY AND LIABILITY INSURANCE FUND (continued)
Appropriations:
Operating expenses	$1,068,765
SPECIAL ASSESSMENT REVOLVING FUND
Sources of Funds:
Operating revenues	$ 225,000
Working capital	121,000
Total Sources of Funds	$ 346,000
Appropriations:
Operating expenses	$ 346,000
; and

RESOLVED FURTHER, that the City Assessor is hereby authorized and instructed to levy 9.91 mills for operations, negative .68 mills for a tax appeal contingency reserve reduction, and 0.64 mills for general obligation debt, a total of 9.87 mills, on the Taxable Value of the various classes of property in the City of Midland on the 2004 City tax roll, in accordance with provisions of Act 114, Public Acts of 1979; and

RESOLVED FURTHER, that in accordance with the recommendation of the Downtown Development Authority, the City Assessor is hereby authorized and instructed to levy an additional 2.00 mills for operations on the Taxable Value of the various classes of property on the 2004 City tax roll in the Downtown Development District; and

RESOLVED FURTHER, that in accordance with MCL 211.44 the City Assessor is hereby authorized and instructed to impose a tax administration fee of one percent (1%) on all applicable taxes levied on both the Summer and Winter property tax bills, to offset costs incurred by the City of Midland in assessing property values, collecting property tax levies and in the review and appeal processes; and

RESOLVED FURTHER, that the City Treasurer is hereby authorized and instructed to add to all taxes paid after the legal due dates of September 15 and February 14 (or the next business day if those dates fall on a holiday or weekend) a four percent (4%) late penalty collection fee, said collection fee to be calculated on the base tax plus the one percent (1%) tax administration fee; and

RESOLVED FURTHER, that all property tax reductions resulting from said negative .68 mill tax appeal contingency levy shall be deducted from the Tax Appeal Contingency Reserve within the General Fund, the balance of which shall be restricted solely for adjustments resulting from the major tax appeals of Midland Cogeneration Venture, The Dow Chemical Company, and the Dow Corning Corporation for 1997 and subsequent years, and shall be accumulated until final disposition of said tax appeals occurs, whereupon any unused funds in said Reserve shall be returned to City taxpayers through a future millage reduction. (Motion ADOPTED. Yeas: Black, Johnson, Myers, Rokosz Nays: McKeag)

CIVIC ARENA PROJECT REPORT

Director of Public Services Martin McGuire presented a report on the progress of the Civic Arena construction project. He introduced Ann Ward, Co-chair of the Fast Ice fundraising committee who reported on Fast Ice’s fund raising efforts. Mr. McGuire also reviewed the preliminary site plan for the facility and reported the design-phase was underway with vendors having met with the architects to help incorporate any in-kind donations into the project. The following resolution was then offered by Councilman McKeag and seconded by Councilman Myers:

RESOLVED, that the staff report regarding the Civic Arena Project is hereby received and filed. (Motion ADOPTED.)

SITE PLAN NO. 240

Assistant City Manager Jon Lynch presented a report on Site Plan No. 240 for a Walgreen Pharmacy and office building on the southeast corner of Eastman Avenue and N. Saginaw Road. City Engineer Brian McManus reported on a recommendation from the City’s traffic engineer who proposed moving the Eastman Avenue driveway closer to the south property line to address traffic concerns. Dave Prueter, Vice President for Agree Realty of Farmington Hills, MI and petitioner for the project, spoke in support of the project. Mike and Karen Fales, 7 Burrell Court; Sally and Leo Stebelton, 6 Burrell Court; Bobbie and Rodrigo Barassi, 23 Burrell Court; Chris Lauckner, 3 Burrell Court; Larry Bellville, 14 Burrell Court; and Mary Lee, 24 Burrell Court, all spoke in opposition to moving the driveway closer to the Burrell Court entrance and spoke in support of Site Plan No. 240 as it was originally proposed. Letters were read on behalf of Judy and Frank Lee, 22 Burrell Court and Stacey Dubay, 19 Burrell Court, who also were in opposition to moving the driveway closer to the Burrell Court entrance and were in support of the Site Plan No. 240 as it was originally proposed. Paula Jurado, 4623 Washington Street, in reference to the traffic concerns along Eastman Avenue, spoke about the illegality of using a turn lane to merge into traffic. She also spoke from her perspective as a nurse in regards to the Walgreen Pharmacy hours of operation. The following resolution was then offered by Councilman McKeag and seconded by Councilman Johnson:

WHEREAS, the City Council has received the recommendation of the City Planning Commission for approval of Site Plan No. 240, the request of Ayres Associates for a proposed 14,820 square foot Walgreens Pharmacy and a 6,600 square foot office building on 2.45 acres at the southeast intersection of Eastman Avenue and North Saginaw Road; and

WHEREAS, the City Council has reviewed the proposed Site Plan No. 240 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 Site Plan No. 240, contingent upon the following:

1. Storm water retention plans are reviewed and approved by the City of Midland Engineering Department.

2. Site lighting shall not cast illumination off site.

3. If site irrigation is planned, a separate water service is required.

4. Sign construction is in accord with the Zoning Ordinance.

5. The refuse receptacle is identified.

6. East and west of the proposed office building there will be evergreen landscape material 5’ in height for screening.

(Motion ADOPTED.)

DRAFT OF PARKS AND RECREATION MASTER PLAN

Director of Public Services Martin McGuire introduced Rob Eggers, Project Manager for Spicer Group, who presented an overview of findings and recommendations included in the 2004 Parks and Recreation Master Plan draft. The following resolution was offered by Councilman McKeag and seconded by Councilman Myers:

WHEREAS, the Parks and Recreation Commission has worked closely with the staff and representatives of Spicer Engineering to develop a Parks and Recreation Master Plan; and

WHEREAS, the Commission recommended adoption of the draft by a 6-0 vote at their meeting of April 6, 2004; now therefore

RESOLVED, that the City Council hereby receives the draft of the Parks and Recreation Master Plan and directs that it be filed for public examination at the Grace A. Dow Memorial Library and the City Clerk’s office; and

RESOLVED FURTHER, that the City Council schedule a public hearing on the Master Plan for Monday, June 14, 2004, at 7:00 pm in City Council Chambers. (Motion ADOPTED.)

GRANT OF FUNDS FOR MIDLAND LAW ENFORCEMENT SAFE CHILD INITIATIVE

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

WHEREAS, the City of Midland Police Department in partnership with the Midland County Office of the Sheriff is sponsoring the Midland Law Enforcement Safe Child Initiative project for the purpose of providing an opportunity for Midland County families to obtain DNA Sample kits for their children which are designed to assist in identification and evidence collection if needed; and

WHEREAS, the Midland Area Community Foundation has offered the City of Midland a grant in the amount of $12,323.00 to assist in funding the DNA Sample kit project; and

WHEREAS, the Midland County Child Protection Council has offered the City of Midland a grant in the amount of $1,000.00 to assist in funding the DNA Sample kit project; and

WHEREAS, revenue from said grants and the resulting expenditures of grant monies were not anticipated in the 2003-04 General Fund budget; now therefore

RESOLVED, that the generous grants of $12,323.00 from the Midland Area Community Foundation and $1,000.00 from the Midland County Child Protection Council are hereby accepted, with appreciation; and

RESOLVED FURTHER, that in accord with Section 11 of the Charter of the City of Midland, a public hearing shall be conducted at 7:00 pm, June 14, 2004 in the Council Chambers of City Hall on the proposal to amend the 2003-04 General Fund budget to increase revenues to recognize gifts of $13,323.00 and to increase Police Department expenditures by $13,323.00 for purchase of DNA Sample kits. (Motion ADOPTED.)

PAY AND COMPENSATION FOR FEDERALIZED EMPLOYEES

Director of Human Resources Paula Speese presented a report on the extension of health benefits and compensation to City of Midland employees who have been federalized through the National Guard. The following resolution was then offered by Councilman McKeag and seconded by Councilman Myers:

WHEREAS, City employees participating in the National Guard were federalized in February 2003 with varying deployment dates and have been informed that this federalization will be extended, and;

WHEREAS, staff was authorized by Council to negotiate letters of agreement with the appropriate bargaining units to extend health benefits and compensate the difference between City and military pay for full-time federalized employees in six month periods, and;

WHEREAS, City Council approval is required to extend benefits and compensation an additional six months, now therefore;

RESOLVED, that staff is authorized to extend health benefits and compensation to the federalized employees effective June 2004 with City Council review in January 2005. (Motion ADOPTED.)

2004 SIDEWALK IMPROVEMENT PROGRAM – CITY ATTORNEY REPORT ON FOSTER RD

City Attorney James O. Branson, III presented a report recommending the removal of the Foster Road sidewalk construction request from the 2004 Sidewalk Improvement Program. The following resolution was then offered by Councilman McKeag and seconded by Councilman Rokosz:

RESOLVED, that the report prepared by the City Attorney on the issue of a sidewalk extension agreement for sidewalk on Foster Road (east side) 108 feet south of Hollyberry to 288 feet south of Hollyberry being in conflict with consideration of said walk in the 2004 Sidewalk Improvement Program is hereby received and filed. (Motion ADOPTED.)

AMENDMENT TO GEORGE STREET STORM SEWER IMPROVEMENT AGREEMENT

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

WHEREAS, a proposal has been received from Hubbell, Roth, and Clark for professional engineering services related to the George Street Basin Storm Sewer System Improvement Program; and

WHEREAS, said services are hereby determined to be professional services, the purchase of which, in accord with Section 2-19 of the Midland Code of Ordinances, does not require sealed proposals; and

WHEREAS, funding is available in the project budget; now therefore

RESOLVED, that the proposal received from Hubbell, Roth, and Clark Inc. of Bloomfield Hills, Michigan with an estimated cost not to exceed $35,000 is hereby accepted; and

RESOLVED FURTHER, that the existing professional engineering agreement between the City of Midland and Hubbell, Roth, and Clark approved July 21, 2003 is hereby amended to reflect the additional professional services not to exceed $35,000. (Motion ADOPTED.)

2004 EASTMAN & JEFFERSON WIDENING; CONTRACT NO. 3

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

WHEREAS, sealed proposals have been advertised and received in accord with Article II of Chapter 2 of the Midland Code of Ordinances for the reconstruction and widening of Eastman Avenue from Joe Mann Boulevard to Commerce Drive and Jefferson Avenue from Joe Mann Boulevard to Broadhead Drive, including sanitary sewer and water main extensions on Jefferson Avenue; and

WHEREAS, funding for this project is provided by the Major Street Fund, Wastewater Fund and Water Fund; now therefore

RESOLVED, that the low sealed proposal submitted by Huckins Contracting, Inc. of Beaverton, Michigan, for the "2004 Eastman & Jefferson Widening; Contract No. 3", in the indicated amount of $834,516.15, 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.)

PURCHASE – GOLF COURSE CHEMICALS

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

WHEREAS, sealed proposals were advertised and received in accord with Article II of Chapter 2 of the Midland Code of Ordinances for the purchase of golf course chemicals, Bid No. 2763; and

WHEREAS, funding for these golf course supplies is included in the 2003-04 and 2004-05 Golf Course Fund budgets under “Horticultural Supplies”; now therefore

RESOLVED, that the Purchasing Agent is authorized to issue a purchase order to Turfgrass, Inc. of South Lyon, Michigan up to the amount of $78,291.20 for chemicals in accordance with their proposals and city specifications. (Motion ADOPTED.)

Being no further business the meeting adjourned at 9:43 p.m.

______________________________________

Selina Tisdale, City Clerk