June 28, 2004

 

A regular meeting of the City Council was held on Monday, June 28, 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 June 14, 2004 regular meeting was offered by Councilman Myers and seconded by Councilman McKeag.  (Motion ADOPTED.)

 

NOTE:  AGENDA ITEMS WERE CONSIDERED AFTER THE CONSENT AGENDA IN THE FOLLOWING ORDER:  ITEM 2, 3, 5, 9, 13, 4, 6, 7, 8, AND 10.  FOR EASE IN FINDING THE APPROPRIATE DOCUMENTATION CORRESPONDING TO SPECIFIC AGENDA ITEMS, THE MINUTES WERE TRANSCRIBED IN THE ORDER THEY WERE ORIGINALLY PLACED ON THE AGENDA AND NOT IN THE ORDER IN WHICH THEY WERE ACTUALLY PRESENTED FOR CONSIDERATION.

 

MBS INTERNATIONAL AIRPORT PRESENTATION

MBS International Airport Manager, Jeff Nagel, gave a presentation on the airport.  The following resolution was then offered by Councilman Myers and seconded by Councilman McKeag:

 

RESOLVED, that the presentation on MBS International Airport given by Mr. Jeff Nagel, Airport Manager, is hereby accepted.  (Motion ADOPTED.)

 

 

ELECTRO PANEL, INC. – IFT APPLICATION

Deputy City Assessor, Roger Elbers, presented information on the request from Electro Panel, Inc. for an industrial facilities exemption certificate.  A public hearing was opened at 7:26 p.m.  John Lefler, 4405 James St., gave a slide presentation of Electro Panel, Inc.  Scott Walker, Midland Economic Development Council, gave a slide presentation in support of the Electro Panel, Inc. request.  The hearing closed at 7:35 p.m.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Myers:

 

WHEREAS, the Electro Panel, Inc., Industrial Development District No. 1 was established by resolution of the Midland City Council on April 28, 2003; and  

WHEREAS, Electro Panel, Inc. made an application dated May 5, 2004, which was received by the City Clerk on May 7, 2004, for an Industrial Facilities Exemption Certificate relating to approval of a new facility within said District; and

WHEREAS, the application for the certificate is for approval of a new facility with the total project cost of $36,000.00 which consists of new personal property with the same being located within the Electro Panel, Inc., Industrial Development District No. 1 and is intended to provide for the purchase and installation of a new computer programmable routing table made by AXYZ Automation; and

WHEREAS, the current use of the property located at 4020 Airport Road is a legal non-conforming use; any action by the City Council approving an Industrial Facilities Exemption Certificate at this location does not imply the City Council’s intent to rezone the property to an industrial use in the future; and

WHEREAS, the City Council, by written notice, afforded the applicant, the City Assessor, and representatives of each affected taxing unit an opportunity for a hearing on June 28, 2004, as required by Public Act 198 of Public Acts of the State of Michigan of 1974, as amended, and has given due consideration to all information presented; and

WHEREAS, the application appears to comply with the requirements set forth in Section 9 of said statute, as amended, in that the proposed facility is located within an industrial development district that was duly established within the City of Midland with the City of Midland being eligible under said statute to establish such a district and with the district having been established upon a request before the commencement of the restoration, replacement or construction of the facility described herein; that the commencement of this project did not occur earlier than six months before the filing of the application for the industrial facilities exemption certificate, that the application relates to a construction, restoration or replacement program that when completed constitutes a new or replacement facility within the meaning of said statute and is situated within a previously established plant rehabilitation district that was established in the City of Midland which was itself eligible under the statute to establish the district; that completion of the facility is calculated to, and will at the time of the issuance of the certificate, have the reasonable likelihood to create employment, retain employment, prevent a loss of employment  or produce energy in the community; now therefore

RESOLVED, that the City Council of the City of Midland finds and determines that the granting of the industrial facilities exemption certificate requested by Electro Panel, Inc. considered together with the aggregate amount of industrial facilities exemption certificates previously granted and currently in force, shall not have the effect of substantially impeding the operation of the City of Midland or impairing the financial soundness of any other taxing unit which levies an ad valorem property tax in the City of Midland; and

RESOLVED FURTHER, that said application for an Industrial Facilities Exemption certificate from Electro Panel, Inc. for a new facility approval within the Industrial Development District be and the same is hereby approved for a period of 12 years with an ending date of December 30, 2016; and

RESOLVED FURTHER, that the Mayor and City Clerk are authorized to execute the Public Act 198 Agreement submitted between the City and Electro Panel, Inc. pursuant to P.A. 334 of Public Acts of the State of Michigan of 1993.  (Motion ADOPTED.)

 

03-04 GENERAL FUND BUDGET AMENDMENT – OFFICE OF HIGHWAY SAFETY PLANNING GRANT

Police Captain for Patrol Services Robert Lane presented information on the Office of Highway Safety Planning Grant.  A public hearing was opened at 10:23 p.m., no comments were made, the hearing closed at 10:23 p.m.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Johnson:

 

WHEREAS, that in accord with Sections 5.11, 11.4 and 11.6 of the Charter of the City of Midland, and having given proper notice, and having conducted a public hearing on Monday, June 28, 2004 on the proposal to amend the 2003-04 General Fund Budget to recognize the receiving of a grant from the Office of Highway Safety Planning in the amount of $20,008.00 for the purpose of reimbursing the overtime wages for the officers of the Midland Police Department and Midland County Office of the Sheriff during holiday seat belt enforcement campaigns; now therefore

RESOLVED, that the 2003-04 General Fund Budget is hereby amended to increase revenue by $20,008.00 to recognize the grant received from the Office of Highway Safety Planning and to increase expenditures by $20,008.00 to recognize the expenses related to the holiday seat belt enforcement project.  (Motion ADOPTED.)

 

SPECIAL USE PERMIT NO. 13 – OFFICE BUILDING

Assistant City Manager Jon Lynch presented information on the request for Special Use Permit No. 13. by Dow Howell Gilmore Associates, Inc.  A public hearing was opened at 7:39 p.m.  Don Koster, 3900 Valley Dr., answered questions from the City Council.  The hearing closed at 7:43 p.m.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Myers:

 

WHEREAS, Donald Koster for Dow Howell Gilmore Associates, Inc. has submitted a request for a special use permit review and approval to construct a 4,700 square foot office building on 2.69 acres on Sugnet Road west of the Pere Marquette Rail Trail; and

WHEREAS, the City Planning Commission has conducted a public hearing in accord with Section 27.2(a) of the Zoning Ordinance of the City of Midland on said special use; and

WHEREAS, the Planning Commission has submitted its recommendation of approval, in accord with Section 27.3 of the Zoning Ordinance of the City of Midland, conditioned on 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.   No parking will be permitted on the loop driveway.

;now therefore

RESOLVED, that the City Council finds the request for the special use permit to be in accord with Section 27.3 of the Zoning Ordinance of the City of Midland, and hereby approves Special Use Permit No. 13, in accord with documents submitted and dated April 8, 2004, subject to the conditions cited above.  (Motion ADOPTED.)

 

03-04 SANITARY LANDFILL BUDGET AMENDMENT – HYDROGEOLOGY MONITORING

Director of Utilities Noel Bush presented information on the Sanitary Landfill Hydrogeology Monitoring project.  A public hearing was opened at 10:23 p.m., no comments were made, the hearing closed at 10:23 p.m.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Myers: 

 

WHEREAS, on June 14, 2004 a public hearing was scheduled for 7:00 p.m., June 28, 2004 to consider amending the 2003/04 Sanitary Landfill Fund budget to increase revenues from working capital by $50,000.00 and to increase appropriations for the Sanitary Landfill Fund – Hydrogeology Monitoring project by $50,000.00; and

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, June 28, 2004, on the proposal to amend the 2003/04 Sanitary Landfill Fund budget to increase revenues from working capital by $50,000.00 and to increase appropriations for the Sanitary Landfill Fund – Hydrogeology Monitoring project by $50,000.00; and

WHEREAS, the City’s environmental consultant at the Landfill is currently NTH Consultants LTD of Farmington Hills, Michigan, and having written the Landfill’s monitoring plan and having familiarity with the site, staff requested that NTH prepare a cost estimate to comply with the new MDEQ hydrogeology monitoring requirements; and

WHEREAS, a cost estimate of $32,500.00 has been provided by NTH for the initial soil boring, analysis, and reporting, and is based on the drilling depths of 75 feet that the City will propose for approval from the MDEQ; and

WHEREAS, the additional funding of $17,500.00 ($50,000.00 - $32,500.00) will cover any unexpected analysis and drilling depths of greater than the proposed 75 feet, but less than 200 feet; now therefore

RESOLVED, that the 2003/04 Sanitary Landfill Fund budget is hereby amended to increase revenues from working capital by $50,000.00 and to increase appropriations for the Sanitary Landfill Fund – Hydrogeology Monitoring project by $50,000.00; and

RESOLVED FURTHER, that based upon the recommendation of City staff, the proposal provided by NTH for the initial soil boring, analysis, and reporting for hydrogeologic monitoring required by the MDEQ is accepted, and sealed proposals are deemed impractical in accord with Section 2-18 of the Code of Ordinances a purchase order is hereby authorized in the amount of $32,500.00 to NTH Consultants LTD of Farmington Hills, Michigan for the proposed hydrogeology monitoring.  (Motion ADOPTED.)

 

03-04 GENERAL FUND BUDGET AMENDMENT – ATTORNEY’S LEGAL FEES

City Attorney James Branson presented information on the 2003-04 General Fund Budget Amendment for unanticipated expenses relating to the dioxin issue.  A public hearing was opened at 10:28 p.m., no comments were made, the hearing closed at 10:28 p.m.  The following resolution was offered by Councilman McKeag and seconded by Councilman Johnson:

 

WHEREAS, that in accord with Chapter 11 of the City of Midland Charter and after having given proper legal notice and having conducted a public hearing on June 28, 2004 in the Council Chambers of City Hall on the proposal to amend the 2003-2004 General Fund Budget to increase expenditures in the City Attorney’s budget by $200,000 for the unanticipated expenses incurred 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; now therefore

RESOLVED, that the 2003-2004 General Fund Budget City Attorney’s Legal Fees account is amended to increase expenditures by $200,000.   (Motion ADOPTED.)

 

PAYMENT FOR LEGAL AND ENVIRONMENTAL CONSULTING SERVICES - DIOXIN

City Attorney James Branson presented information on the payment for legal and environmental consulting services relating to the dioxin issue.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Johnson:

 

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, on May 10, 2004, Council authorized payments to Miller, Canfield, Paddock & Stone and Fishbeck, Thompson, Carr & Huber, Inc. for the aforementioned services in a total amount not to exceed $180,000; and

WHEREAS, the cost of said legal and consulting fees 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; and

WHEREAS, sufficient budgetary funding exists within the 2003-2004 City Attorney’s 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 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 $380,000.  (Motion ADOPTED.)

 

03-04 and 04-05 GENERAL FUND BUDGET AMENDMENT – DOW CHEMICAL & CORNING TAX APPEALS

City Attorney James Branson presented information on the 2003-04 General Fund Budget Amendment to increase expenditures relating to The Dow Chemical and Dow Corning tax appeals and decrease 2004-05 expenditures in The Dow Chemical and Dow Corning Tax Appeal Activity.  A public hearing was opened at 10:32 p.m., no comments were made, the hearing closed at 10:33 p.m.  The following two resolutions were then presented for consideration.

 

03-04 GENERAL FUND BUDGET AMENDMENT – DOW CHEMICAL & CORNING TAX APPEALS

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

 

WHEREAS, that in accord with Chapter 11 of the City of Midland Charter and after having given proper legal notice and having conducted a public hearing on June 28, 2004 in the Council Chambers of City Hall on the proposal to amend the 2003-2004 General Fund Budget to increase expenditures by $230,000 in The Dow Chemical Tax Appeal Activity and $410,000 in the Dow Corning Tax Appeal Activity for the unanticipated expenses incurred in The Dow Chemical Company and the Dow Corning Corporation tax appeals; now therefore

RESOLVED, that the 2003-2004 General Fund Budget is amended to increase expenditures by $230,000 in The Dow Chemical Tax Appeal Activity, specifically by increasing the Legal Fees account by $116,000 and the Appraisal Fees account by $114,000; and

RESOLVED FURTHER, that the 2003-2004 General Fund Budget is amended to increase expenditures by $410,000 in the Dow Corning Tax Appeal Activity, specifically by increasing the Legal Fees account by $168,000 and the Appraisal Fees account by $242,000.  (Motion ADOPTED.)

 

04-05 GENERAL FUND BUDGET AMENDMENT – DOW CHEMICAL & DOW CORNING TAX APPEALS

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

 

WHEREAS, that in accord with Chapter 11 of the City of Midland Charter and after having given proper legal notice and having conducted a public hearing on June 28, 2004 in the Council Chambers of City Hall on the proposal to amend the 2004-2005 General Fund Budget to decrease expenditures by $230,000 in The Dow Chemical Tax Appeal Activity and $410,000 in the Dow Corning Tax Appeal Activity; now therefore

RESOLVED, that the 2004-2005 General Fund Budget is amended to decrease expenditures by $230,000 in The Dow Chemical Tax Appeal Activity, specifically by decreasing the Legal Fees account by $116,000 and the Appraisal Fees account by $114,000; and

RESOLVED FURTHER, that the 2004-2005 General Fund Budget is amended to decrease expenditures by $410,000 in the Dow Corning Corporation Tax Appeal Activity, specifically by decreasing the Legal Fees account by $168,000 and the Appraisal Fees account by $242,000.  (Motion ADOPTED.)

 

APPRAISAL SERVICES – DOW CHEMICAL & DOW CORNING TAX APPEALS

City Attorney James Branson presented information on the appraisal services for the Dow Chemical and Dow Corning tax appeals.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Rokosz:

 

WHEREAS, the Dow Corning Corporation appealed the 1996, 1997, 1998, 1999, 2000, 2001, 2002, and 2003 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, 2001, 2002, 2003, and certain 2004 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 8, 2004, 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 $6,790,000; 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 the Director of Fiscal Services is hereby authorized to transfer $180,000 within the 2003-2004 General Fund budget from the Appraisal Fees account in the Midland Cogeneration Tax Appeal activity to the Appraisal Fees account in The Dow Chemical Company Tax Appeal Activity; and

RESOLVED FURTHER, that the Director of Fiscal Services is hereby authorized to transfer $90,000 within the 2003-2004 General Fund budget from the Legal Fees account in the Midland Cogeneration Tax Appeal activity to the Appraisal Fees account in the Dow Corning Corporation Tax Appeal Activity; 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 $8,100,000.  (Motion ADOPTED.)

 

LEGAL SERVICES – DOW CHEMICAL & CORNING TAX APPEALS

City Attorney James Branson presented information on the legal services for the Dow Chemical and Dow Corning tax appeals.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Rokosz:

 

WHEREAS, the Dow Corning Corporation appealed the 1996, 1997, 1998, 1999, 2000, 2001, 2002, and 2003 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, 2001, 2002, 2003 and certain 2004 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 April 12, 2004, Council authorized payments to Miller, Canfield, Paddock & Stone for the aforementioned services in a total amount not to exceed $4,805,000; 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; and

WHEREAS, sufficient budgetary funding exists within the 2003-2004 and 2004-2005 Legal Fees budgets of the Dow Corning Corporation and The Dow Chemical Company Tax Appeal activity; 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 $6,000,000.  (Motion ADOPTED.)

 

ACCOUNTING SERVICES – DOW CORNING TAX APPEAL

City Attorney James Branson presented information on accounting services for the Dow Corning tax appeal.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Rokosz:

 

WHEREAS, the Dow Corning Corporation appealed the 1996, 1997, 1998, 1999, 2000, 2001, 2002 and 2003 assessment and taxable value of certain property it owns located in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, the services of the public accounting firm of Plante and Moran, LLP, are required to assist the City in its defense of Dow Corning’s appeals; and

WHEREAS, on February 23, 2004, the City Council authorized payment for said services in connection with the 1996, 1997, 1998, 1999, 2000, 2001, 2002 and 2003 appeals in an amount not to exceed $289,000; and

WHEREAS, sufficient budgetary funding exists within the 2003-2004 and 2004-2005 general fund budget for the Dow Corning Corporation tax appeal cases; 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 Plante and Moran, LLP, for continued professional services in connection with the aforementioned defense of the Dow Corning Corporation is hereby authorized in an amount not to exceed $300,000.  (Motion ADOPTED.)

 

ENVIRONMENTAL CONSULTING SERVICES – DOW CHEMICAL TAX APPEAL

City Attorney James Branson presented information on the environmental consulting services for the Dow Chemical tax appeal.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Rokosz:

 

WHEREAS, The Dow Chemical Company appealed the 1997, 1998, 1999, 2000, 2001, 2002, 2003 and certain 2004 assessment and taxable value of certain property it owns located in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, the services of the environmental management consulting firm of Pilko & Associates, Inc. are required to assist the City in its defense of The Dow Chemical Company’s appeals; and

WHEREAS, the cost of continuing said services is expected to exceed $20,000 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 and 2004-2005 Appraisal Fees budget for The Dow Chemical Company tax appeal cases; 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 Pilko & Associates, Inc. for professional services in connection with the aforementioned defense of The Dow Chemical Company appeal is hereby authorized in an amount not to exceed $50,000.  (Motion ADOPTED.)

 

APPRAISAL SERVICES – DOW CHEMICAL TAX APPEAL

City Attorney James Branson presented information on the appraisal services for the Dow Chemical tax appeal.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Rokosz:

 

WHEREAS, The Dow Chemical Company has appealed the 1997, 1998, 1999, 2000, 2001, 2002, 2003 and certain 2004 assessments and taxable values of certain property it owns in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, the appraisal firm of Terzo & Bologna, Inc. has been utilized in assisting the City of Midland in its defense of said appeals; and

WHEREAS, the cost of said appraisal fees will exceed $20,000 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 and 2004-2005 general fund 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 authorization for payment to the appraisal firm of Terzo & Bologna, Inc. for their assistance in connection with the aforementioned appeal is hereby authorized to an amount not to exceed $60,000.  (Motion ADOPTED.)

 


03-04 CABLE COMMUNICATIONS FUND BUDGET AMENDMENT

City Attorney James Branson presented information on the 2003-04 Cable Communications Fund Budget amendment.  A public hearing was opened at 7:47 p.m.  Larry Pillepich, 3602 McKeith St., spoke against the cable television franchise fee.  The hearing closed at 7:50 p.m.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Rokosz:

 

WHEREAS, that in accord with Chapter 11 of the City of Midland Charter and after having given proper legal notice and having conducted a public hearing on June 28, 2004 in the Council Chambers of City Hall on the proposal to amend the 2003-2004 Cable Communications Fund Budget to increase expenditures for legal fees by $35,000 for the unanticipated expenses incurred in the cable franchise fee lawsuit which is currently pending; now therefore

RESOLVED, that the 2003-2004 Cable Communications Fund Budget Legal Fees account is amended to increase expenditures by $35,000.  (Motion ADOPTED.)

 

LEGAL SERVICES – CABLE FRANCHISE FEE LAWSUIT

City Attorney James Branson presented information on the legal services for the cable franchise fee lawsuit.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Myers:

 

WHEREAS, in November 2003 a class action lawsuit was filed by several Michigan residents against twelve (12) municipalities, including the City of Midland; and

WHEREAS, the law firm of Kitch, Drutchas, Wagner, DeNardis & Valitutti has been retained in assisting the City of Midland, and several other municipalities, in their defense of said lawsuit; and

WHEREAS, the cost of continuing said appraisal services is expected to exceed $20,000 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 2003-2004 Cable Communications Fund Budget; 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 Kitch, Drutchas, Wagner, DeNardis & Valitutti for its legal assistance in connection with the aforementioned lawsuit is hereby authorized in a total amount not to exceed $35,000.  (Motion ADOPTED.)

 

04-05 MAJOR STREET BUDGET AMENDMENT

City Engineer Brian McManus presented information on the 2004-05 Major Street Fund budget amendment.  A public hearing was opened at 10:38 p.m., no comments were made, the hearing closed at 10:38 p.m.  The following resolution was then offered by Councilman McKeag and seconded by Councilman Myers:

 

WHEREAS, the Midland County Road Commission is reconstructing Saginaw Road from Waldo Court to the Saginaw County line during the 2004 construction season and has requested that the limits of their project extend to Gordonville Road, to complete the reconstruction of Saginaw Road east of Gordonville Road; and

WHEREAS, Saginaw Road from Gordonville Road to Waldo Court is under the jurisdiction of the City of Midland and the cost to reconstruct this section of roadway is the responsibility of the City of Midland and is estimated to cost $100,000 and funding is available in the unrestricted fund balance of the 2004-05 Major Street Fund to cover this expenditure; and

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, June 28, 2004, on the proposal to amend the 2004-05 Major Street Fund Budget to increase expenditures by $100,000 to allow for the construction of improvements to Saginaw Road from Gordonville Road to Waldo Court; now therefore

RESOLVED, that the 2004-05 Major Street Fund Budget is hereby amended to increase expenditures by $100,000 to allow for construction of improvements to Saginaw Road from Gordonville Road to Waldo Court; and

RESOLVED FURTHER,  that following completion of said Saginaw Road reconstruction, the City Manager is authorized to make payment to the Midland County Road  Commission in an amount not to exceed $100,000 for the City portion of this project; and

RESOLVED FURTHER, that City Council hereby approves revising the Construction Projects Priority list to add Saginaw Road reconstruction from Gordonville Road to Waldo Court.   (Motion ADOPTED.)

 

PUBLIC COMMENTS

There were no public comments.

 

MIDLAND WATER RATE ORDINANCE

Director of Utilities Noel Bush presented information on the water rate ordinance.  The following ordinance amendment was then offered by Councilman McKeag and seconded by Councilman Johnson:

 

ORDINANCE NO. 1581

AN ORDINANCE TO AMEND THE CODE OF ORDINANCES, CITY OF MIDLAND, MICHIGAN, BY AMENDING SECTION 28-52 OF DIVISION 3 OF ARTICLE II OF CHAPTER 28 THEREOF.

The City of Midland Ordains:

Section 1.  Section 28-52 of Division 3 of Article II of Chapter 28 of the Code of Ordinances is hereby amended to read as follows:

Sec. 28-52. Filtered water rate generally.

The city's methodology of adjusting water rates shall be in accordance with the cost of service water and sewer rate study prepared by the city's consultant, presented to and approved by the council in 1993 and shall be in conformity with the findings set forth in section 28-2 of this chapter.

All filtered water bills shall be calculated according to the following:

(1)               For each one thousand (1,000) gallons used per quarter: $1.03

In addition to the rate set forth in this section for the use of water, there shall be a readiness-to-serve charge per quarter on each metered service as follows:

Metered Service

Amount

     5/8" – ¾"

$27.42

1"

35.65

1 – ½"

43.87

2"

71.29

3"

274.20

4"

356.46

6"

520.98

8"

740.34

(2)        Gross rates shall be ten (10) percent greater than the above schedule of rates and shall be charged for water service paid for after the date shown on the bills.

Section 2.    This ordinance shall take effect upon publication.  (Ordinance ADOPTED.)

 

MIDLAND SEWER RATE ORDINANCE

Director of Utilities Noel Bush presented information on the sewer rate ordinance.  The following ordinance amendment was then offered by Councilman Johnson and seconded by Councilman Myers:


ORDINANCE NO. 1582

AN ORDINANCE TO AMEND THE CODE OF ORDINANCES, CITY OF MIDLAND, MICHIGAN, BY AMENDING SECTION 28-163 OF DIVISION 3 OF ARTICLE III OF CHAPTER 28 THEREOF.

The City of Midland Ordains:

Section 1.  Section 28-163 of Division 3 of Article III of Chapter 28 of the Code of Ordinances is hereby amended to read as follows:

Sec. 28-163. Amount of sewer charge.

The city's methodology of adjusting sewer rates shall be in accordance with the cost of service water and sewer rate study prepared by the city’s consultant, presented to and approved by the council in 1993 and shall be in conformity with the findings set forth in Section 28-4 of this chapter.

The charges for sewer service shall be calculated according to the following schedule:

(1)               There shall be a readiness-to-serve charge per quarter on each metered water service as follows:

Metered Service

Amount

     5/8" – ¾"

$31.08

1"

        40.40

1 – ½"

        49.73

2"

        80.81

3"

      310.80

4"

      404.04

6"

      590.52

8"

      839.16

(2)               In addition to the readiness-to-serve charge set forth in subsection (1) of this section, there will be an additional charge for sewer service, which will be calculated as follows:

For each 1,000 gallons of water used per quarter:       $1.44

However, bills for sewer services for two (2) summer quarters for domestic customers, schools and churches shall be based on the average consumption during two (2) winter quarters. In cases where there is no previous consumption upon which to base bills for sewer services in the summer quarters, twenty-five thousand (25,000) gallons or actual consumption, whichever is the least, shall be used.

Section 2.    This ordinance shall take effect upon publication.  (Ordinance ADOPTED.)

 

SITE PLAN NO. 241 – DOLLAR DAZE

Assistant City Manager Jon Lynch presented information on the proposed Site Plan No. 241 to construct an 11,025 sq. ft. building on 3.1 acres located north of N. Saginaw Road and west of Eastman Avenue.  Jerry Schafer, 2750 E. Mier Rd., representing the developer spoke regarding the city ordinance requiring stormwater detention and drainage and on the design of the Dollar Daze store.  Kirk Bortal, 5102 Highridge Ct. spoke regarding neighborhood concerns relating to security, privacy, and drainage. Nancy Stark, 1801 Sylvan Lane, spoke regarding flooding problems on her property.  She raised questions concerning where snow cleared from adjacent parking lot would be stored, dumpster placement and site lighting affecting her property.  She indicated her support of the proposal set forth by the neighborhood.  City Engineer Brian McManus answered several questions by the City Council on the drainage issue.  David Dalman, 1907 Sylvan Lane stated his concerns about a fence adjacent to his property.  He wants the trees along the north property line to remain a buffer.  Leslie Warner Rafaniello, 1715 Sylvan Lane, agrees with a fence.  She is also concerned about wetlands on the site.  She wants to know where the water is going to go after the site is filled in.  The owner of Dollar Daze Anne Wiltsie, 1201 Bayberry, said she is going to get the water problem resolved.  She also could do the fencing if that is what the neighbors want.  She thinks the buffer is adequate the way it is.  She offered to put the buffer status in writing.  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. 241, the request of Dollar Daze to construct an 11,025 square foot building on 3.1 acres located north of North Saginaw Road and west of Eastman Avenue; and

WHEREAS, the City Council has reviewed the proposed Site Plan No. 241 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. 241, contingent upon the following:

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

2.         Access rights to and from the subject parcel are clearly delineated.

3.         Illumination is not cast off site.

4.         A 6’ tall chain link fence with black vinyl coating with 1.5” mesh will be constructed along the north and west property line.

5.         Retention of the approximately 55’ wooded buffer along the north property line.

6.         Planting of evergreen trees in a staggered pattern on 7.5’ centers with 10’ separating the alternating rows of trees along the west property line.

(Motion ADOPTED.)

 

ANNEXATION FROM MIDLAND TWP – 4412 N. WALDO ROAD

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

 

RESOLVED, that the City Council of the City of Midland herewith approves the annexation of the following described properties to the City of Midland:

SEC 12 T14N R2E COM 140 FT N OF N 1/8 COR OR W SEC LN, TH N 645.8 FT TO HWY ROW SE ALONG HWY ROW 731.57 FT TO A PT 140 FT N OF 1/8 LN, W TO POB EXC HWY ROW ALONG WALDO ROAD.

pursuant to Section 9(8) of Public Act 279 of the State of Michigan of 1909, as amended {MSA 5.2088;  MCLA 117.9} as a result of a similar petition filed both with the City of Midland and the Township of Midland, by the property owners which hold 100 percent of the record legal title to said property, and upon which no qualified electors, other than the petitioners, presently reside, with said annexation to the City of Midland to be accomplished upon the passage of a similar resolution by the Township Board of the Township of Midland; and

RESOLVED FURTHER, that the Planning Department shall forward a copy of this resolution to the Office of the Great Seal in the Secretary of State’s Office, and the City Clerk shall forward a copy to the Midland County Clerk.  (Motion ADOPTED.)

 

TRAFFIC CONTROL ORDER S-04-01

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

 

RESOLVED, that Traffic Control Order No. S-04-01 filed April 26, 2004 pursuant to Chapter 24 of the Code of Ordinances to establish traffic control as follows:

That Rockwell Drive shall stop for E. Patrick Road.

is hereby made permanent.  (Motion ADOPTED.)

 


CHE BROTHERS, INC. LIQUOR LICENSE

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

 

RESOLVED, that the request from CHE BROTHERS, INC. TO TRANSFER OWNERSHIP OF 2001 CLASS C LICENSED BUSINESS WITH DANCE PERMIT, LOCATED IN ESCROW AT 5010 BAY CITY, MIDLAND, MI  48642, MIDLAND COUNTY, FROM RESTAURANT TUMA, INC.; AND REQUEST TO CANCEL THE EXISTING DANCE PERMIT

be considered for approval.

It is the consensus of this legislative body that the application be:   Recommended for issuance.  (Motion ADOPTED.)

 

FINAL PAY DEFERRAL PLAN

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

 

WHEREAS, the City of Midland (“The City”) has employees who are rendering valuable services; and

WHEREAS, the establishment of a money purchase retirement plan benefits employees by providing funds for retirement and funds for their beneficiaries in the event of death; and

WHEREAS, the City desires that its money purchase retirement plan be administered by the ICMA Retirement Corporation and that the funds held under such plan be invested in the ICMA Retirement Trust, a trust established by public employers for the collective investment of funds held under their retirement and deferred compensation plans; now therefore

RESOLVED, that the City hereby establishes a money purchase retirement plan (the “Plan”) in the form of The ICMA Retirement Corporation Governmental Money Purchase Plan and Trust, pursuant to the specific provisions of the Adoption Agreement (executed copy attached hereto); and

RESOLVED FURTHER, that the Plan shall be maintained for the exclusive benefit of eligible employees and their beneficiaries; and

RESOLVED FURTHER, that the City hereby approves the Declaration of Trust of the ICMA Retirement Trust, attached hereto, intending this approval to be operative with respect to any retirement or deferred compensation plan subsequently established by the City, if the assets of the plan are to be invested in the ICMA Retirement Trust; and

RESOLVED FURTHER, that the City hereby agrees to serve as trustee under the Plan and to invest funds held under the Plan in the ICMA Retirement Trust; and

RESOLVED FURTHER, that the City Manager, or his/her designee, shall be the coordinator for the Plan; shall receive reports, notices, etc., from the ICMA Retirement Corporation or the ICMA Retirement Trust; shall cast on behalf of the City any required votes under the ICMA Retirement Trust; may delegate any administrative duties relating to the Plan to appropriate departments; and is authorized to execute all necessary agreements with the ICMA Retirement Corporation incidental to implementation and administration of the Plan.  (Motion ADOPTED.)

 

2004 ST ANDREWS WATER MAIN & PLYMOUTH PARK WALKWAY; CONTRACT NO. 13

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 is for the installation of a water main along St. Andrews Road from Sugnet Road to the water tower on Wheeler Street and the construction of a paved walkway through Plymouth Park from the end of the existing sidewalk on St. Andrews Road to Wheeler Street; and

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

RESOLVED, that the low sealed proposal submitted by L.J. Construction, Inc. of Clifford, Michigan, for the "2004 St. Andrews Water Main and Plymouth Park Walkway; Contract No. 13", in the indicated amount of $299,540.00, 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.)

 

PERIODICAL & NEWSPAPER SUBSCRIPTION SERVICES - LIBRARY

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 periodical and newspaper subscription services for the Grace A. Dow Memorial Library; and

WHEREAS, the proposal submitted by Magazine Subscription Service Agency is the lowest bid; and

WHEREAS, funding is available in the 2004/2005 Grace A. Dow Memorial Library budget; now therefore

RESOLVED, that the sealed proposal for Bid No. 2769 submitted by Magazine Subscription Service Agency for periodical and newspaper subscription services for the Grace A. Dow Memorial Library in an amount not to exceed $26,000 is hereby accepted and the necessary purchase order authorized.  (Motion ADOPTED.)

 

EMPLOYEE ASSISTANCE PROGRAM CONTRACT

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

 

WHEREAS, the City has been contracting professional services for its Employee Assistance Program coordination with Lona McLuckie for sixteen years; and

WHEREAS, it is recommended by the staff to continue this relationship for purposes of consistency and continuity in the EAP program; and

WHEREAS, in accordance with Section 2-19 of the Code of Ordinances, sealed proposals are not required for contracts for professional services; now therefore

RESOLVED, that the proposed contract between the City of Midland and Lona McLuckie, in the amount of $3,231.42 per month ($38,777.04 annually) effective July 1, 2004 through June 30, 2005, for the provision of Employee Assistance Program services, is hereby approved and the Mayor and City Clerk are authorized to execute the final document.  (Motion ADOPTED.)

 

COMPUTER HARDWARE & SOFTWARE PURCHASE

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

 

WHEREAS, competitive pricing has been received from the Regional Educational Media Center of Michigan (REMC) contract in accord with Article II of Chapter 2 of the Midland Code of Ordinances for computer hardware and software; and

WHEREAS, funds have been budgeted in the 2004-2005 Information Services Investment in Assets budget for Computer/Software purchases; now therefore

RESOLVED, that the City Council hereby accepts the REMC contract pricing meeting the City’s specifications submitted by Hewlett Packard Company of Palo Alto, California in the amount of $63,177.00 for computer hardware and software and authorizes purchase orders to be issued.  (Motion ADOPTED.)


LEGAL SERVICES – MCV TAX APPEAL

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

 

WHEREAS, the Midland Cogeneration Venture (MCV) appealed the 1997, 1998, 1999, 2000, 2001, 2002, 2003 and 2004 assessments and taxable values of certain property it owns in the City of Midland to the Michigan Tax Tribunal; and

WHEREAS, the law firms of Braun, Kendrick, Finkbeiner, P.L.C., Westrate and Thomas, P.C., formerly known as Westrate and Holmstrom, P.C., and also Spiegel & McDiarmid have been utilized in assisting the City of Midland in its legal defense of said appeal; and

WHEREAS, on June 23, 2003, Council authorized payments to Braun, Kendrick, Finkbeiner, P.L.C., Westrate and Holmstrom, P.C. and also Spiegel & McDiarmid for the aforementioned services in a total amount not to exceed $5,250,000; 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; and

WHEREAS, sufficient budgetary funding exists within the 2003-2004 and 2004-2005 Legal Fees budget for the MCV 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 authorization for payment to the law firms of Braun, Kendrick, Finkbeiner, P.L.C., Westrate and Thomas, P.C., and also Spiegel & McDiarmid for their assistance in connection with the aforementioned appeal is hereby increased to an amount not to exceed $5,500,000.  (Motion ADOPTED.)

 

QUADSIL, INC. – IFT APPLICATION

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

 

RESOLVED, that an application dated June 3, 2004 was received June 7, 2004 from QuadSil, Inc. with supporting data pursuant to Public Act 198 of the Public Acts of the State of Michigan of 1974, as amended, for an industrial facilities exemption certificate within the Eastwick Industrial Park Industrial Development District relating to new facilities for both real and personal property with the facility intended to provide for the construction of a new 5,000 square foot Silicone Solutions and Application Center along with associated personal property in the amount of $758,048.97 relating to new facility approval to allow further expansion in the Eastwick Industrial Park Industrial Development District 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, July 12, 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.)

 

NEW BUSINESS

 

The City Council discussed the issue of local preference in purchasing.  Council asked for a future presentation by the Purchasing Agent on the City’s purchasing process.  City staff will also prepare a brief report on local preference.

 


CLOSED SESSION – WRITTEN OPINION BY CITY ATTORNEY

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

 

RESOLVED, that in accord with Section 8(h) of Public Act 267 of the Public Acts of the State of Michigan of 1976, as amended, and upon adoption of this resolution by at least four (4) affirmative votes of the City Council, the City Council shall immediately adjourn to a closed session to consider material exempt from discussion or disclosure by state or federal statute in connection with a written opinion by the City Attorney as an Attorney-Client privilege document.   (Motion ADOPTED.)

 

Being no further business the meeting adjourned at 11:10 p.m.

 

 

______________________________________

            John E. Duso, Deputy City Clerk