May 21, 2007

A regular meeting of the City Council was held on Monday, May 21, 2007, at 7:00 p.m. in the Council Chambers of City Hall. Mayor Johnson presided. The Pledge of Allegiance to the Flag was recited in unison.

Councilmen present:	Thomas Adams, Bruce Johnson, Hollis McKeag, James Myers, Joseph Rokosz
Councilmen absent:	None

MINUTES

Approval of the minutes of the May 7, 2007 special and regular meetings was offered by Councilman McKeag and seconded by Councilman Myers. (Motion ADOPTED.)

AMERICAN RED CROSS EVERYDAY HEROES DAY

Communications Coordinator Libby Richart introduced Midland/Gladwin Chapter of the American Red Cross President Mike Krecek. The following resolution was then offered by Councilman Adams and seconded by Councilman McKeag:

RESOLVED, that the Mayor is authorized to issue the attached proclamation designating May 21, 2007, as American Red Cross Everyday Heroes Day in Midland. (Motion ADOPTED.) Mayor Johnson presented the proclamation to Mike Krecek.

ZONTA CLUB WEEK IN MIDLAND

Communications Coordinator Libby Richart introduced Zonta Club President Nicole Charles. The following resolution was then offered by Councilman Rokosz and seconded by Councilman Adams:

RESOLVED, that the Mayor is authorized to issue the attached proclamation designating the week of June 3-9, 2007 as Zonta Club Week in Midland. (Motion ADOPTED.) Mayor Johnson presented the proclamation to Nicole Charles.

CITIZENS ACADEMY

City Clerk/Community Relations Coordinator Selina Tisdale presented a review of the 2007 Citizens Academy and a resolution receiving and filing the staff report. Citizen Academy graduates Lowell Gisel and Izzy Castellon spoke regarding their Citizen Academy experiences. The following resolution was then offered by Councilman Rokosz and seconded by Councilman Myers:

RESOLVED, that Midland City Council hereby receives and files the report on the 2007 Citizens Academy. (Motion ADOPTED.)

PUBLIC COMMENTS

Received a written correspondence from Fay Wood.

MUNICIPAL CIVIL INFRACTIONS – ORDINANCE AMENDMENT (CEMETERY RULES)

City Attorney James Branson III presented the first reading of an ordinance to amend Section 34-5 of Chapter 34 of the Midland Code of Ordinances to include violations of the Cemetery Rules as civil infraction violations. Introduction and first reading of the following ordinance amending Section 34-5 was then offered by Councilman McKeag and seconded by Councilman Myers:

ORDINANCE NO. ________

AN ORDINANCE TO AMEND THE CODE OF ORDINANCES OF THE CITY OF MIDLAND, MICHIGAN, BY amending section 34-5 of Chapter 34 THEREOF.

The City of Midland Ordains:

Section 1. Sec. 34-5 is hereby amended as follows:

Sec. 34-5. Municipal Civil Infractions.

A violation of any of the following provisions of the City of Midland Code of Ordinances shall be a municipal civil infraction:

(1) Chapter 8, Uniform Fire Code.

(2) The city zoning ordinance.

(3) Chapter 29, Stormwater Runoff Regulation and Control.

(4) Section 22-2 of Article I of Chapter 22, Sign placement in the city right of way areas.

(5) Article VI of Chapter 15, Telecommunications.

(6) Article IV, Chapter 22, Addresses.

(7) Article V, Chapter 5, Soil Erosion and Sedimentation Control.

(8) Rules and Regulations of the Jack Barstow Municipal Airport.

(9) Cemetery Rules.

Section 2. This Ordinance shall take effect on June 11, 2007. (Motion ADOTPED. Considered first reading.)

2007-08 BUDGET

Fiscal Services Director David Keenan presented for adoption the City Manager’s Proposed 2007-08 Budget. The following resolution was then offered by Councilman McKeag and seconded by Councilman Adams:

WHEREAS, a public hearing on the 2007-2008 budget was held on Monday, May 7, 2007, 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 $2,525,202,300 plus $59,189,050 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, 2007 and ending June 30, 2008 is hereby determined and adopted as follows:

GENERAL FUND
Sources of Funds:
Property Taxes	$29,198,475
Intergovernmental	3,329,500
Other revenues	4,871,018
Fund balance	51,654
Total Sources of Funds	$37,450,647
Appropriations:
General programs	$34,216,854

Capital improvement	411,199
Transfers to other funds	2,522,594
Contingencies	300,000
Total Appropriations	$37,450,647
MAJOR STREET FUND
Sources of Funds:
State gas and weight tax	$ 2,895,000
Other revenues	795,676
Transfer from other funds	752,000
Fund balance	562,176
Total Sources of Funds	$ 5,004,852
Appropriations:
Street maintenance	$ 1,572,543
Street construction	2,760,750
Transfers to other funds	651,559
Contingencies	20,000
Total Appropriations	$ 5,004,852
LOCAL STREET FUND
Sources of Funds:
State gas and weight tax	$ 780,500
Other revenues	172,000
Transfers from other funds	1,203,000
Fund balance	203,915
Total Sources of Funds	$ 2,359,415
Appropriations:
Street maintenance	$ 1,231,580
Street construction	887,000
Transfers to other funds	220,835
Contingencies	20,000
Total Appropriations	$ 2,359,415
STORMWATER MANAGEMENT FUND Sources of Funds:
Operating revenues	$ 21,000
Other revenues	15,000
Transfer from other funds	719,425
Fund balance	70,387
Total Sources of Funds	$ 825,812
Appropriations:
Storm sewer maintenance	$ 750,812
Construction	50,000
Contingencies	25,000
Total Appropriations	$ 825,812
GRACE A. DOW LIBRARY FUND Sources of Funds:
Property Taxes	$ 2,548,540
Operating revenues	414,013
State funds	45,000
Other revenues	318,500
Transfers from other funds	802,792
Total Sources of Funds	$ 4,128,845
Appropriations:
Operating expenditures	$ 4,045,445
Capital expenditures	83,400
Total Appropriations	$ 4,128,845
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
Sources of Funds:
Federal grants	$ 286,698
Program income	80,000
Total Sources of Funds	$ 366,698
Appropriations:
Residential home rehabs	$ 212,935
Other expenditures	145,763
Contingencies	8,000
Total Appropriations	$ 366,698
CABLE COMMUNICATIONS FUND
Sources of Funds:
Operating revenues	$ 478,400
Other revenues	14,000
Transfers from other funds	15,000
Total Sources of Funds	$ 507,400
Appropriations:
Operating expenditures	$ 469,765
Capital expenditures	11,000
Contingencies	3,500
Fund balance	23,135
Total Appropriations	$ 507,400
DOWNTOWN DEVELOPMENT AUTHORITY FUND
Sources of Funds:
Property taxes	$ 400,000
Other revenues	74,500
Fund balance	323,767
Total Sources of Funds	$ 798,267
Appropriations:
Operating expenditures	$ 434,567
Capital expenditures	200,000
Transfers to other funds	148,700
Contingencies	15,000
Total Appropriations	$ 798,267
TRANSPORTATION (DIAL-A-RIDE) FUND
Sources of Funds:
Operating revenues	$ 120,000
Intergovernmental	1,342,042
Other revenues	1,000
Transfers from other funds	645,910
Total Sources of Funds	$ 2,108,952
Appropriations:
Operating expenses	$ 1,581,119
Other expenses	49,007
Capital expenses	468,826
Contingencies	10,000
Total Appropriations	$ 2,108,952
SPECIAL ACTIVITIES FUND
Sources of Funds:
Contributions and other	$ 61,800
Appropriations:
Other expenditures	$ 56,400
Fund balance	5,400
Total Appropriations	$ 61,800

HOUSING FUND
Sources of Funds:
Sale of assets and other	$ 131,000
Appropriations:
Cost of assets sold & other	$ 127,000
Fund balance	4,000
Total Appropriations	$ 131,000
DEBT SERVICE FUND
Sources of Funds:
Property taxes	$ 610,131
Other revenue	15,000
Transfer from other funds	196,861
Fund balance	9,331
Total Sources of Funds	$ 831,323
Appropriations:
Transfers to other funds	$ 831,323
DDA DEBT SERVICE FUND
Sources of Funds:
Transfers from other funds	$ 103,700
Appropriations:
Bond principal	$ 100,000
Bond interest & other	3,700
Total Appropriations	$ 103,700
CIVIC ARENA FUND
Sources of Funds:
Operating revenue	$ 1,127,800
Capital contributions	683,423
Other revenue	27,105
Transfers from other funds	200,000
Working capital	246,899
Total Sources of Funds	$ 2,285,227
Appropriations:
Operating expenses	$ 1,032,960
Capital expenses	20,000
Interest expense	291,288
Other expenses	24,924
Interfund loan principal	416,055
Contingencies	10,000
Retirement of debt	490,000
Total Appropriations	$ 2,285,227
SANITARY LANDFILL FUND
Sources of Funds:
Operating revenue	$ 3,692,500
Other revenue	373,980
Interfund loan proceeds	416,055
Working capital	865,037
Total Sources of Funds	$ 5,347,572
Appropriations:
Operating expenses	$ 2,223,912
Other expenses	131,160
Capital expenses	2,942,500
Contingencies	50,000
Total Appropriations	$ 5,347,572

WASHINGTON WOODS FUND
Sources of Funds:
Operating revenues	$ 1,112,548
Other revenues	147,220
Transfer from other funds	10,000
Working capital	137,874
Total Sources of Funds	$ 1,407,642
Appropriations:
Operating expenses	$ 1,204,363
Other expenses	155,279
Capital expenses	38,000
Contingencies	10,000
Total Appropriations	$ 1,407,642
RIVERSIDE PLACE FUND
Sources of Funds:
Operating revenues	$ 1,053,362
Other revenues	164,000
Working capital	101,335
Total Sources of Funds	$ 1,318,697
Appropriations:
Operating expenses	$ 1,091,464
Other expenses	162,233
Capital expenses	45,000
Transfers to other funds	10,000
Contingencies	10,000
Total Appropriations	$ 1,318,697
GOLF COURSE FUND
Sources of Funds:
Operating revenues	$ 1,182,130
Other revenues	49,800
Total Sources of Funds	$ 1,231,930
Appropriations:
Operating expenses	$ 1,166,466
Other expenses	32,406
Capital expenses	19,800
Contingencies	5,000
Working capital	8,258
Total Appropriations	$ 1,231,930
PARKING FUND
Sources of Funds:
Operating revenues	$ 90,260
Other revenues	1,186
Transfers from other funds	45,000
Working capital	30,802
Total Sources of Funds	$ 167,248
Appropriations:
Operating expenses	$ 167,248
WASTEWATER FUND
Sources of Funds:
Operating revenues	$ 4,754,868
Other revenues	103,200
Transfers from other funds	831,323
Working capital	110,539
Total Sources of Funds	$ 5,799,930

Appropriations:
Operating expenses	$ 3,289,099
Other expenses	321,794
Interest expense	570,537
Capital expenses	683,500
Retirement of debt	815,000
Transfers to other funds	70,000
Contingencies	50,000
Total Appropriations	$ 5,799,930
WATER FUND
Sources of Funds:
Operating revenues	$ 8,905,260
Contractual revenue	1,069,435
Other revenues	283,510
Working capital	836,777
Total Sources of Funds	$ 11,094,982
Appropriations
Operating expenses	$ 6,345,548
Other expenses	592,273
Interest expense	627,073
Capital expenses	1,401,600
Retirement of debt	1,908,488
Transfers to other funds	120,000
Contingencies	100,000
Total Appropriations	$ 11,094,982
DATA PROCESSING OPERATIONS
Sources of Funds:
Operating revenues	$ 1,073,116
Other revenues	60,000
Working capital	38,411
Total Sources of Funds	$ 1,171,527
Appropriations:
Operating expenses	$ 933,960
Other expenses	112,567
Capital expenses	125,000
Total Appropriations	$ 1,171,527
DATA PROCESSING RENTAL FUND
Sources of Funds:
Operating revenues	$ 194,100
Other revenues	16,693
Working capital	143,923
Total Sources of Funds	$ 354,716
Appropriations:
Operating expenses	$ 344,716
Capital expenses	10,000
Total Appropriations	$ 354,716
GIS FUND
Sources of Funds:
Other revenues	$ 14,000
Transfers from other funds	430,000
Working capital	26,584
Total Sources of Funds	$ 470,584
Appropriations:
Operating expenses	$ 343,290

Other expenses	17,294
Capital expenses	80,000
Contingencies	30,000
Total Appropriations	$ 470,584
EQUIPMENT REVOLVING FUND
Sources of Funds:
Operating revenues	$ 3,556,586
Other revenues	200,459
Loan proceeds	1,000,000
Total Sources of Funds	$ 4,757,045
Appropriations:
Operating expenses	$ 2,414,169
Other expenses	446,235
Capital expenses	1,752,500
Contingencies	25,000
Working capital	119,141
Total Appropriations	$ 4,757,045
SERVICE CENTER RENTAL FUND
Sources of Funds:
Operating revenues	$ 316,100
Other revenue	36,000
Total Sources of Funds	$ 352,100
Appropriations:
Operating expenses	$ 258,703
Other expenses	3,327
Capital expenses	31,000
Working capital	59,070
Total Appropriations	$ 352,100
PROPERTY AND LIABILITY INSURANCE FUND
Sources of Funds:
Operating revenues	$ 803,365
Working capital	116,106
Total Sources of Funds	$ 919,471
Appropriations:
Operating expenses	$ 919,471
SPECIAL ASSESSMENT REVOLVING FUND
Sources of Funds:
Operating revenues	$ 80,000
Other revenues	119,000
Total Sources of Funds	$ 199,000
Appropriations:
Transfers to other funds	$ 50,000
Working capital	149,000
Total Appropriations	$ 199,000
; and

RESOLVED FURTHER, that the City Assessor is hereby authorized and instructed to levy 9.49 mills for operations, .17 mills for storm water operations, 1.34 mills for a tax appeal contingency reserve, 1.00 mills for library operations and 0.24 mills for general obligation debt, a total of 12.24 mills, on the taxable value of the various classes of property in the City of Midland on the 2007 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 2007 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 processing taxes under review and appeal; 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 revenues resulting from said 1.34 mill tax appeal contingency levy shall be placed in a Tax Appeal Contingency Reserve within the General Fund, shall be restricted solely for adjustments resulting from the major tax appeals of Midland Cogeneration Venture 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.)

MCV AMENDED COMPOSITE PROJECT PLAN

Assistant City Manager Jack Duso presented a resolution regarding the Midland Cogeneration Venture’s Amended Composite Project Plan. Harold W. Bulger, Jr. of Miller, Canfield, Paddock and Stone, PLC and representing the Economic Development Corporation of Midland County, responded to Council questions regarding the resolution. The following resolution was then offered by Councilman Adams and seconded by Councilman Rokosz:

WHEREAS, Midland Cogeneration Venture Limited Partnership (“MCV”) has requested The Economic Development Corporation of the County of Midland (the “Corporation”) to issue not to exceed $181,000,000 of its Subordinated Pollution Control Limited Obligation Revenue Refunding Bonds (Midland Cogeneration Project), Series A and not to exceed $19,000,000 of its Subordinated Pollution Control Limited Obligation Revenue Refunding Bonds (Midland Cogeneration Project), Series B (collectively, the “Refunding Bonds”) to provide a portion of the funds necessary to refund, on a current basis, not to exceed $181,000,000 of the Corporation’s outstanding Subordinated Pollution Control Limited Obligation Revenue Refunding Bonds (Midland Cogeneration Venture Project), Series 2000A and not to exceed $19,000,000 of the Corporation’s outstanding Subordinated Pollution Control Limited Obligation Revenue Refunding Bonds, Series 2000B (collectively, the “Refunded Bonds”); and

WHEREAS, the Refunded Bonds were issued in 2000 to refinance certain bonds issued by the Corporation in 1990, the proceeds of which were used to finance and refinance certain pollution control equipment (the “Project”) installed at the cogeneration facility operated by MCV in the City; and

WHEREAS, the Economic Development Corporations Act, Act No. 338, Public Acts of Michigan, 1974, as amended (“Act 338”) requires that the Composite Project Plan for the Project be amended to provide for the issuance of the Refunding Bonds and to update certain information contained therein which changed since the Composite Project Plan was last amended in 1999; and

WHEREAS, Act 338 further requires that the amendments to the Composite Project Plan must be approved by the Corporation and by the governing body of each city, village, township in which the Project is located and the County of Midland (the “County”); and

WHEREAS, in accordance with Act 338, the City Council of the City (the “Council”) approved the original Composite Project Plan for the original financing of the Project on September 21, 1982 and has subsequently approved each amendment to the Composite Project Plan for all subsequent financings and refinancings of the Project; and

WHEREAS, on April 12, 2007, the Board of the Corporation approved the current amendments to the Composite Project Plan and on May 15, 2007, the County Board of Commissioners approved the amendments to the Composite Project Plan; and

WHEREAS, the Corporation has requested that the Council consider the approval of the amended Composite Project Plan, a copy of which is on file with the City Clerk, to provide for the issuance of the Refunding Bonds for the aforementioned purposes; and

WHEREAS, under Section 23 of Act 338, neither the City nor the County shall be liable on the Refunding Bonds, the Refunding Bonds shall not be a debt of the City or the County and a statement to that effect must appear on the faces of the Refunding Bonds; consequently, the City will incur no financial liability or have any obligation whatsoever to pay the debt service on the Refunding Bonds in the event that MCV defaults in providing the funds necessary to pay such debt service on the Refunding Bonds.

NOW, THEREFORE, BE IT RESOLVED:

1. The amended Composite Project Plan as submitted and approved by the Board of the Corporation and the County Board of Commissioners and the issuance of the Refunding Bonds are hereby approved.

2. In accordance with Act 338, the approval of the Amended Composite Project Plan by this Council is subject to the conditions that the City shall not be liable on the Refunding Bonds and the Refunding Bonds shall not be a debt of the City.

3. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded. (Motion ADOPTED by a Roll Call Vote.)

SITE PLAN NO. 259

The following resolution was 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. 259, the request of A. J. Damman Company, on behalf of Eastlawn Center LLC for the 8,226 square foot proposed building located at 803 South Saginaw Road on 8.88 acres; and

WHEREAS, the City Council has reviewed the proposed Site Plan No. 259 in accord with the provisions set forth in Sections 27.02(A) and 27.06(A) of the Zoning Ordinance of the City of Midland; now therefore

RESOLVED, that the City Council does hereby approve Site Plan No. 259, contingent upon the following:

1. The stormwater detention system is designed and constructed in accordance with the City of Midland Engineering Department specifications.

2. All exterior lighting shall comply with Section 3.12 of the Zoning Ordinance.

3. All landscaping shall comply with Article 6 of the Zoning Ordinance.

4. All signage shall comply with Article 8 of the Zoning Ordinance.

5. All parking stalls shall be delineated with the “box” style striping.

(Motion ADOPTED.)

FINAL PLAT OF WINDING CREEK ESTATES NO. 2

Planning and Community Development Director Keith Baker presented the Final Plat of Winding Creek Estates No. 2, a residential subdivision of 33 lots on 10.6 acres located east of Perrine Road, north of Letts Road. Sheila Messler of Bennett Construction responded to Council questions regarding the plat. The following resolution was then offered by Councilman Myers and seconded by Councilman McKeag:

WHEREAS, the Final Plat of Winding Creek Estates No. 2 is in conformance with the approved Preliminary Plat, and all requirements of Chapter 23 of the Code of Ordinances of the City of Midland have been met; now therefore

RESOLVED, that the City Council does hereby approve the Final Plat of Winding Creek Estates No. 2, in accordance with Section 23-18 of the Code of Ordinances of the City of Midland; and

RESOLVED FURTHER, that the Mayor and City Clerk are hereby authorized to execute the contract for the required improvements; and

RESOLVED FURTHER, that the City Clerk is hereby authorized to execute the plat and record it on behalf of the City. (Motion ADOPTED.)

LETTS ROAD EXTENSION PROJECT – PURCHASE OF PROPERTY

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

WHEREAS, a report has been received from the City Engineer indicating that City and County Road Commission Staff have executed a purchase agreement with F/A Pnacek Limited, Inc. for land purchase; and

WHEREAS, the Midland County Road Commission has approved said purchase agreement; and

WHEREAS, the City of Midland and the Midland County Road Commission have previously agreed to jointly pursue the Letts Road Extension Project by entering into the “AGREEMENT BETWEEN THE MIDLAND COUNTY ROAD COMMISSION AND THE CITY OF MIDLAND REGARDING THE EXTENSION OF LETTS ROAD”; and

WHEREAS, the City of Midland is responsible for land acquisition costs in accordance with said agreement; now therefore

RESOLVED, that the City Manager is authorized to pay the Midland County Road Commission an amount up to $95,000 of County Road Millage Funds to acquire land from F/A Pnacek Limited, Inc. and for associated closing costs. (Motion ADOPTED.)

LETTS ROAD EXTENSION PROJECT – PURCHASE OF PROPERTY

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

WHEREAS, a report has been received from the City Engineer indicating that City and County Road Commission Staff have executed a purchase agreement with Jim and Dora Pnacek for land purchase; and

WHEREAS, the Midland County Road Commission has approved said purchase agreement; and

WHEREAS, the City of Midland and the Midland County Road Commission have previously agreed to jointly pursue the Letts Road Extension Project by entering into the “AGREEMENT BETWEEN THE MIDLAND COUNTY ROAD COMMISSION AND THE CITY OF MIDLAND REGARDING THE EXTENSION OF LETTS ROAD”; and

WHEREAS, the City of Midland is responsible for land acquisition costs in accordance with said agreement; now therefore

RESOLVED, that the City Manager is authorized to pay the Midland County Road Commission an amount up to $27,000 of County Road Millage Funds to acquire land from Jim and Dora Pnacek and for associated closing costs. (Motion ADOPTED.)

LANDFILL – PURCHASE OF ADJACENT PROPERTY (Hahn)

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

WHEREAS, upon the approval of the north expansion area at the Sanitary Landfill, which includes Cells 14-19, the City extended an open purchase offer to all adjoining landowners to ensure an adequate air and visual quality buffer surrounding the Landfill; and

WHEREAS, this past winter, Brenda K. Hahn (seller) approached Landfill personnel to offer a 1.1 acre parcel located to the northwest of the Landfill site for sale, consisting of a home, garage, and a barn; and

WHEREAS, the home has been vacant for approximately one year, is uninhabitable in its current condition, and considering the home’s current condition and the cost to correct the structural problems, the home has been determined to have no value by the City Assessor; and

WHEREAS, the Hahn property was compared to other sales of similar properties to establish the agreed upon purchase price of $62,000.00; and

WHEREAS, funds are available in the 2006/07 Landfill Budget account 517-9120-912.97-10; now therefore

RESOLVED, that the Mayor and City Clerk are hereby authorized to execute said purchase agreement and the purchase is authorized in the amount of $62,000.00 for the land and appurtenances located at 4674 E. Wheeler Road in Midland. (Motion ADOPTED.)

2006 ANNUAL DRINKING WATER QUALITY REPORT

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

RESOLVED, that the 2006 Annual Drinking Water Quality Report be received and filed in the office of the City Clerk. (Motion ADOPTED.)

2007 RODD STREET RECONSTRUCTION

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

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 resurfacing, sanitary and storm sewer repairs on Rodd Street from Buttles Street to Saginaw Road and water main replacement on Rodd Street from Nelson Street to Saginaw Road; 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 Porath Contractors, Inc. of Houghton Lake, Michigan, for the "2007 Rodd Street Reconstruction; Contract No. 1", in the indicated amount of $898,443.20, 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.)

2007 SURFACE TREATMENT & CRACK SEALING PROGRAM

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

WHEREAS, sealed proposals have been advertised and received in accord with Article II of Chapter 2 of the Midland Code of Ordinances for the surface treatment and crack sealing of local and major streets and the parking lot at the Law Enforcement Center; and

WHEREAS, funding for this project is provided by the Major and Local Street Funds and the Joint Building Authority of the Law Enforcement Center; now therefore

RESOLVED, that the low sealed proposal submitted by Highway Maintenance & Construction, Inc. of Romulus, Michigan for the "2007 Surface Treatment & Crack Sealing Program; Contract No. 4", in the indicated amount of $267,057.47 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 any change orders modifying or altering this contract in an aggregate amount not to exceed $20,000. (Motion ADOPTED.)

ANNUAL WATER METER AND ACCESSORIES PURCHASE

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

WHEREAS, the City’s Water Distribution Department periodically purchases brass meters of various sizes, with associated accessories, to measure customer water usage; and

WHEREAS, in 1987, the City began standardizing water meters, eliminating the need to duplicate meter-reading equipment, and through competitive bids, Sensus Technologies was selected; and

WHEREAS, sealed bids for purchase of Sensus water meters and accessories, Bid No. 3009, have been advertised and received in accord with Section 2-18 of the Midland Code of Ordinances; and

WHEREAS, funding for meters and accessories is provided in Water Fund Inventory Account #591-0000-091.13-31; now therefore

RESOLVED, that the lone bid submitted by ETNA Supply Company of Grand Rapids, Michigan, for the indicated prices, is accepted and a purchase order is hereby authorized in an amount not to exceed $81,000.00 for purchases of meters and accessories through December 2007; and

RESOLVED FURTHER, that the City Manager is authorized to approve change orders modifying or altering this contract in an aggregate amount not to exceed $10,000.00. (Motion ADOPTED.)

GOLF COURSE CHEMICALS PURCHASE

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

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. 3010; and

WHEREAS, funding for these golf course supplies is included in the 2006-07 and 2007-08 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 $90,000; to Lesco, Inc. of Cleveland, Ohio up to the amount of $25,000; and to Tri Turf of Traverse City, Michigan up to the amount of $10,000 for chemicals in accordance with their proposals and city specifications. (Motion ADOPTED.)

GOLF CART STORAGE/MAINTENANCE BUILDING

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

WHEREAS, On May 7, 2007, City Council accepted a gift of $500,000 from the Currie Family to build a cart storage/maintenance facility at Currie Golf Course; and

WHEREAS, Section 2-20 of the Code of Ordinances allows City Council to waive competitive bids for projects which utilize funds donated to the City; and

WHEREAS, Staff has recommended that Three Rivers Company be contracted to build the cart storage/maintenance facility based on their experience with floodplain projects and their positive performances on other City projects; now therefore

RESOLVED, that the Purchasing Agent is hereby authorized to issue a purchase order to Three Rivers Company to design/build the cart storage/maintenance facility at Currie Golf Course in an amount not exceed $500,000. (Motion ADOPTED.)

PROPOSED 2006-07 AND 2007-08 GOLF COURSE BUDGET AMENDMENT

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

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., June 11, 2007 in the Council Chambers of City Hall on the proposal to amend the 2006-07 and 2007-08 budgets of the Golf Course Fund to increase operating expenditures by $21,200 for FY06/07 and $51,700 for FY07/08 for changes in the operations at the clubhouse and to increase the revenue by $24,900 for FY06/07 and $54,700 for FY07/08 to reflect additional revenue as a result of such changes, and to amend the General Fund’s 2006-07 and 2007-08 budgets to recognize a decrease in operating revenue of $8,000 and a decrease in operating expenditures of $5,000, for both years, as a result of moving the Junior Golf program into the Golf Course Fund. (Motion ADOPTED.)

NEW BUSINESS:

TRI-COUNTY HORSE ASSOCIATION – NON PROFIT STATUS RECOGNITION

Assistant City Manager Jack Duso presented a resolution recognizing the Tri-County Horse Association as a non-profit organization in the community for the purpose of registering with the Charitable Gaming Division of the Michigan Lottery. The following resolution was then offered by Councilman McKeag and seconded by Councilman Rokosz:

RESOLVED, that the request from Tri-County Horse Association of Midland, county of Midland, asking that they be recognized as a nonprofit organization operating in the community for the purpose of obtaining a charitable gaming license, be considered for approval. (Motion ADOPTED.) .

Being no further business the meeting adjourned at 8:45 p.m.

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Selina Tisdale, City Clerk