May 19, 2008

A regular meeting of the City Council was held on Monday, May 19, 2008, 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, Maureen Donker, Bruce Johnson, Hollis McKeag, Joseph Rokosz
Councilmen absent:	None

MINUTES

Approval of the minutes of the May 12, 2008 regular meeting was offered by Councilman Adams and seconded by Councilman Donker. (Motion ADOPTED.)

2008 MAKE MIDLAND BEAUTIFUL ART CELEBRATION

Public Services Administrative Assistant Jan Yuergens introduced Bobbi Arnold and Bernadette Van Slyck who recognized 22 elementary and middle school children for outstanding work in creating posters for the 2008 Make Midland Beautiful Art Celebration.

RECOGNITION OF MIDLAND HIGH SCHOOL VARSITY HOCKEY TEAM & COACHES

City Clerk/Community Relations Director Selina Tisdale introduced Jeff Brown, Coach of the Midland High Chemics hockey team. The following resolution was then offered by Councilman Adams and seconded by Councilman Rokosz:

RESOLVED, that the Mayor is authorized to issue the attached Proclamation of Recognition congratulating the Midland High School varsity hockey team and their coaches for outstanding athletics and teamwork during the 2007-2008 season and the MHSAA Division 2 State Finals. (Motion ADOPTED.) Mayor Johnson presented Mr. Brown with the Proclamation of Recognition.

PUBLIC COMMENTS

No public comments were made.

2008-09 CITY BUDGET

Fiscal Services Director David Keenan presented a resolution adopting the City Manager’s Proposed 2008-09 Budget. The following resolution was then offered by Councilman McKeag and seconded by Councilman Adams:

WHEREAS, a public hearing on the 2008-2009 budget was held on Monday, May 12, 2008, 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 taxes paid after the 15th day of September; and

WHEREAS, MCL 211.44 permits local property tax collecting units to add to taxes collected after February 14 and before March 1, four percent (4%) for late charges and additional fees; 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 $2,091,945,200 plus $55,510,700 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, 2008 and ending June 30, 2009 is hereby determined and adopted as follows:

GENERAL FUND
Sources of Funds:
Property taxes	$25,955,001
Intergovernmental	3,572,000
Other revenues	4,243,546
Fund balance	2,720,723
Total Sources of Funds	$36,491,270
Appropriations:
General government	$ 6,202,894
Public safety	15,432,689
Public works	2,746,830
Sanitation	2,590,282
Parks and recreation	4,498,774
Other functions	1,605,008
Transfer to other funds	3,064,793
Contingencies	350,000
Total Appropriations	$36,491,270
MAJOR STREET FUND
Sources of Funds:
State gas and weight tax	$ 2,727,400
Other revenues	894,720
Transfer from other funds	1,110,000
Fund balance	24,190
Total Sources of Funds	$ 4,756,310
Appropriations:
Street maintenance	$ 1,885,395
Street construction	2,141,000
Transfer to other funds	709,915
Contingencies	20,000
Total Appropriations	$ 4,756,310
LOCAL STREET FUND
Sources of Funds:
State gas and weight tax	$ 745,700
Other revenues	215,000
Transfer from other funds	1,840,000
Fund balance	341,136
Total Sources of Funds	$ 3,141,836
Appropriations:
Street maintenance	$ 1,519,217
Street construction	1,399,000
Transfer to other funds	203,619
Contingencies	20,000
Total Appropriations	$ 3,141,836
STORM WATER MANAGEMENT FUND Sources of Funds:
Operating revenues	$ 23,300
Other revenues	3,000
Transfer from other funds	760,210
Fund balance	132,848
Total Sources of Funds	$ 919,358
Appropriations:
Operating expenses	$ 831,358
Capital expenditures	84,000
Contingencies	4,000
Total Appropriations	$ 919,358
GRACE A. DOW LIBRARY FUND Sources of Funds:
Property taxes	$ 2,119,304
Operating revenues	323,286
State funds	50,000
Other revenues	521,350
Transfer from other funds	1,164,411
Total Sources of Funds	$ 4,178,351
Appropriations:
Operating expenditures	$ 4,133,351
Capital expenditures	45,000
Total Appropriations	$ 4,178,351
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
Sources of Funds:
Federal and program	$ 430,944
Appropriations:
Residential home rehabs	$ 171,800
Other expenditures	98,500
Transfer to other funds	123,289
Contingencies	10,000
Carryover to next year	27,355
Total Appropriations	$ 430,944
MIDLAND COMMUNITY TELEVISION FUND
Sources of Funds:
Operating revenues	$ 490,700
Other revenues	62,500
Transfer from other funds	15,000
Total Sources of Funds	$ 568,200
Appropriations:
Operating expenditures	$ 516,515
Capital expenditures	16,000
Contingencies	12,000
Fund balance	23,685
Total Appropriations	$ 568,200
DOWNTOWN DEVELOPMENT AUTHORITY FUND
Sources of Funds:
Property taxes	$ 305,000
Other revenues	41,500
Fund balance	412,342
Total Sources of Funds	$ 758,842
Appropriations:
Operating expenditures	$ 376,842
Capital expenditures	322,000
Transfer to other funds	45,000
Contingencies	15,000
Total Appropriations	$ 758,842
DIAL-A-RIDE FUND
Sources of Funds:
Operating revenues	$ 127,050
State funds	714,404
Federal funds	463,609
Other revenues	100
Transfer from other funds	770,295
Total Sources of Funds	$ 2,075,458
Appropriations:
Operating expenses	$ 1,801,183
Capital expenses	264,275
Contingencies	10,000
Total Appropriations	$ 2,075,458
SPECIAL ACTIVITIES FUND
Sources of Funds:
Contributions and other	$ 75,900
Fund balance	15,500
Total Sources of Funds	$ 91,400
Appropriations:
Other expenditures	$ 91,400
MIDLAND HOUSING FUND
Sources of Funds:
Sale of assets	$ 110,000
Other revenues	11,000
Transfer from other funds	56,289
Total Sources of Funds	$ 177,289
Appropriations:
Cost of assets sold	$ 110,000
Warranty maintenance	15,000
Other expenses	2,000
Fund balance	50,289
Total Appropriations	$ 177,289
DEBT SERVICE FUND
Sources of Funds:
Property taxes	$ 631,553
Other revenues	7,000
Transfer from other funds	196,411
Total Sources of Funds	$ 834,964
Appropriations:
Transfer to other funds	$ 834,964
CIVIC ARENA FUND
Sources of Funds:
Operating revenues	$ 1,164,000
Contributions	470,000
Other revenue	35,800
Transfer from other funds	200,000
Total Sources of Funds	$ 1,869,800
Appropriations:
Operating expenses	$ 1,186,534
Capital expenses	20,000
Interest expense	245,075
Interfund loan principal	261,914
Contingencies	10,000
Retirement of debt	135,000
Working capital	11,277
Total Appropriations	$ 1,869,800
LANDFILL FUND
Sources of Funds:
Operating revenues	$ 3,091,500
Other revenues	289,692
Interfund loan proceeds	261,914
Working capital	994,769
Total Sources of Funds	$ 4,637,875
Appropriations:
Operating expenses	$ 2,673,039
Other expenses	19,836
Capital expenses	1,895,000
Contingencies	50,000
Total Appropriations	$ 4,637,875
WASHINGTON WOODS FUND
Sources of Funds:
Operating revenues	$ 1,192,792
Other revenues	138,253
Transfer from other funds	77,000
Working capital	111,818
Total Sources of Funds	$ 1,519,863
Appropriations:
Operating expenses	$ 1,403,503
Other expenses	88,860
Capital expenses	17,500
Contingencies	10,000
Total Appropriations	$ 1,519,863
RIVERSIDE PLACE FUND
Sources of Funds:
Operating revenues	$ 1,141,497
Other revenues	143,300
Working capital	77,561
Total Sources of Funds	$ 1,362,358
Appropriations:
Operating expenses	$ 1,220,358
Other expenses	77,000
Capital expenses	45,000
Transfer to other funds	10,000
Contingencies	10,000
Total Appropriations	$ 1,362,358
CURRIE MUNICIPAL GOLF COURSE FUND
Sources of Funds:
Operating revenues	$ 1,375,477
Other revenues	5,287
Total Sources of Funds	$ 1,380,764
Operating expenses	$ 1,375,386
Contingencies	5,000
Working capital	378
Total Appropriations	$ 1,380,764
PARKING FUND
Sources of Funds:
Operating revenues	$ 90,073
Transfer from other funds	45,000
Working capital	35,177
Total Sources of Funds	$ 170,250
Appropriations:
Operating expenses	$ 170,250
WASTEWATER FUND
Sources of Funds:
Operating revenues	$ 5,194,200
Other revenues	94,300
Other funds	834,964
Working capital	427,096
Total Sources of Funds	$ 6,550,560
Appropriations:
Operating expenses	$ 3,875,953
Other expenses	500
Interest expense	536,607
Capital expenses	1,232,500
Retirement of debt	855,000
Contingencies	50,000
Total Appropriations	$ 6,550,560
WATER FUND
Sources of Funds:
Operating revenues	$ 9,077,905
Contractual revenue	1,003,571
Other revenues	175,376
Working capital	1,057,469
Total Sources of Funds	$11,314,321
Appropriations
Operating expenses	$ 7,483,694
Other expenses	1,000
Interest expense	536,579
Capital expenses	1,252,000
Retirement of debt	1,941,048
Contingencies	100,000
Total Appropriations	$11,314,321
INFORMATION SERVICES - OPERATIONS FUND
Sources of Funds:
Operating revenues	$ 1,104,041
Other revenues	33,600
Working capital	37,006
Total Sources of Funds	$ 1,174,647
Appropriations:
Operating expenses	$ 1,079,647
Capital expenses	95,000
Total Appropriations	$ 1,174,647

INFORMATION SERVICES - COMPUTER RENTAL FUND
Sources of Funds:
Operating revenues	$ 194,095
Other revenues	10,400
Total Sources of Funds	$ 204,495
Appropriations:
Operating expenses	$ 156,941
Capital expenses	5,000
Working capital	42,554
Total Appropriations	$ 204,495
GEOGRAPHIC INFORMATION SYSTEMS FUND
Sources of Funds:
Operating revenues	$ 430,000
Other revenues	9,500
Working capital	42,760
Total Sources of Funds	$ 482,260
Operating expenses		$ 420,260
Capital expenses		32,000
Contingencies		30,000
Total Appropriations		$ 482,260
EQUIPMENT REVOLVING FUND
Sources of Funds:
Operating revenues		$ 3,840,958
Other revenues		157,880
Working capital		425,137
Total Sources of Funds		$ 4,423,975
Appropriations:
Operating expenses		$ 2,810,975
Capital expenses		1,588,000
Contingencies		25,000
Total Appropriations		$ 4,423,975
MUNICIPAL SERVICE CENTER FUND
Sources of Funds:
Operating revenues		$ 325,433
Other revenues		22,229
Working capital		264,261
Total Sources of Funds		$ 611,923
Appropriations:
Operating expenses		$ 265,923
Capital expenses		336,000
Contingencies		10,000
Total Appropriations		$ 611,923
MUNICIPAL SERVICE ANNEX FUND
Sources of Funds:
Operating revenues		$ 18,220
Other revenues		500
Total Sources of Funds		$ 18,720
Appropriations:
Operating expenses		$ 8,220
Capital expenses		5,000
Contingencies		5,000
Working capital		500
Total Appropriations		$ 18,720
PROPERTY AND LIABILITY INSURANCE FUND
Sources of Funds:
Operating revenues	$ 782,699
Working capital	119,550
Total Sources of Funds	$ 902,249
Appropriations:
Operating expenses	$ 902,249
SPECIAL ASSESSMENT REVOLVING FUND
Sources of Funds:
Operating revenues	$ 50,000
Other revenues	60,000
Total Sources of Funds	$ 110,000
Appropriations:
Other funds	$ 50,000
Working capital	60,000
Total Appropriations	$ 110,000
; and

RESOLVED FURTHER, that the City Assessor is hereby authorized and instructed to levy 11.49 mills for operations, .21 mills for storm water operations, 1.00 mills for library operations and 0.29 mills for general obligation debt, a total of 12.99 mills, on the taxable value of the various classes of property in the City of Midland on the 2008 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 2008 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. (Motion ADOPTED. Yeas: Adams, Donker, Johnson, McKeag Nays: Rokosz)

GENERAL OBLIGATION JUDGMENT BONDS – MCV TAX APPEAL REFUND

Fiscal Services Director David Keenan presented information on the issuance of limited tax general obligation judgment bonds for the purpose of paying the unfunded portion of the tax appeal refund to the Midland Cogeneration Venture for the years 2001 through 2007. The following resolution was then offered by Councilman Rokosz and seconded by Councilman McKeag:

WHEREAS, the City Council of the City of Midland, Counties of Midland and Bay (the “City” or “Issuer”)), intends to authorize the issuance and sale of its limited tax general obligation bonds, pursuant to section 6097 of Act 236, Public Acts of Michigan, 1961, as amended (“Act 236”), in a total amount of not to exceed Seventeen Million Eight Hundred and Ninety Thousand Dollars ($17,890,000), for the purpose of defraying the cost of complying with a consent judgment entered against the City and others in favor Midland Cogeneration Venture Limited Partnership and the costs of issuance of the bonds; and

WHEREAS, all conditions precedent to the issuance of bonds authorized by Act 236 will be or have been complied with and will be or are present in this situation.

NOW, THEREFORE, BE IT RESOLVED THAT:

1. Bonds of the Issuer designated General Obligation Judgment Funding Bonds (Limited Tax), Series 2008 (the “Bonds”) are authorized to be issued in the aggregate principal sum of Seventeen Million Eight Hundred and Ninety Thousand Dollars ($17,890,000) for the purpose of paying part of the cost of complying with the judgment described in the preamble hereto (the “Judgment”) and to pay the costs of issuance of the Bonds, the balance of the cost of complying with the Judgment to be paid from other funds lawfully available to the City. The issue shall consist of bonds in fully-registered form of the denomination of $5,000, or multiples thereof not exceeding for each maturity the maximum principal amount of that maturity, numbered consecutively in order of registration, dated as of the date of their delivery to the original purchaser thereof. The Bonds shall bear interest, mature, be subject to redemption, and be payable at the times and in the manner set forth in Sections 6 and 7 hereof.

Interest shall be payable to the registered owner of record as of the 15th day of the month prior to the payment date for each interest payment. The record date of determination of registered owner for purposes of payment of interest as provided in this paragraph may be changed by the Issuer to conform to market practice in the future. Interest shall be payable by check or draft drawn on the Transfer Agent (as hereinafter defined) mailed to the registered owner at the registered address, as shown on the registration books of the Issuer maintained by the Transfer Agent. The principal of the Bonds shall be payable upon presentation and surrender to the Transfer Agent.

A bank or financial institution, qualified to act as such, shall be appointed to serve as bond registrar, paying agent and transfer agent (the “Transfer Agent”) for this issue. The City Treasurer is hereby authorized to execute one or more agreements with the Transfer Agent on behalf of the Issuer. The Issuer reserves the right to replace the Transfer Agent at any time upon written notice to the registered owners of record of the Bonds not less than sixty (60) days prior to an interest payment date.

2. The Bonds of this issue shall be executed in the name of the Issuer with the facsimile signatures of the Mayor and the City Clerk and shall have the seal of the Issuer, or a facsimile thereof, printed or impressed on the Bonds. No Bond shall be valid until authenticated by an authorized officer or representative of the Transfer Agent. The Bonds shall be delivered to the Transfer Agent for authentication and be delivered by the Transfer Agent to the purchaser or other person in accordance with instructions from the Clerk or Treasurer of the Issuer upon payment of the purchase price for the Bonds in accordance with the bid therefor when accepted.

3. The Transfer Agent shall keep the books of registration for this issue on behalf of the Issuer. Any Bond may be transferred upon such registration books by the registered owner of record, in person or by the registered owner’s duly authorized attorney, upon surrender of the Bond for cancellation, accompanied by delivery of a duly executed written instrument of transfer in a form approved by the Transfer Agent. Whenever any Bond or Bonds shall be surrendered for transfer, the Issuer shall execute and the Transfer Agent shall authenticate and deliver a new Bond or Bonds, for like aggregate principal amount. The Transfer Agent shall require the payment by the bondholder requesting the transfer of any tax or other governmental charge required to be paid with respect to the transfer.

Unless waived by any registered owner of Bonds to be redeemed, official notice of redemption shall be given by the Transfer Agent on behalf of the Issuer. Such notice shall be dated and shall contain at a minimum the following information: original issue date; maturity dates; interest rates; CUSIP numbers, if any; certificate numbers (and in the case of partial redemption) the called amounts of each certificate; the place where the Bonds called for redemption are to be surrendered for payment; and that interest on the Bonds or portions thereof called for redemption shall cease to accrue from and after the redemption date. The bonds shall be issued in book entry only form through the Depository Trust Company in New York, New York.

In addition, further notice shall be given by the Transfer Agent in such manner as may be required or suggested by regulations or market practice at the applicable time, but no defect in such further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as prescribed herein.

4. The Treasurer shall open a separate depositary account with a bank or trust company designated by the City Council, designated JUDGMENT FUNDING BOND DEBT RETIREMENT FUND (the “Debt Retirement Fund”), the moneys to be deposited into the Debt Retirement Fund to be specifically earmarked and used solely for the purpose of paying principal of, redemption premium, if any, and interest on the Bonds as they mature. The Bonds shall be payable as a first budget obligation from the general funds of the City. Commencing with the year 2008, there shall be levied upon the tax rolls of the Issuer for the purpose of the Debt Retirement Fund each year, in the manner required by the provisions of Act 34, Public Acts of Michigan, 2001, as amended, an amount sufficient so that the estimated collection therefrom will be sufficient to promptly pay, when due, the principal of and interest on the Bonds becoming due prior to the next annual tax levy; provided, however, that if at the time of making any such annual tax levy there shall be surplus moneys on hand in the Debt Retirement Fund for the payment of principal of and interest on the Bonds, then credit therefor may be taken against such annual levy for the Debt Retirement Fund. The ad valorem taxes levied hereunder shall be subject to applicable constitutional, statutory and charter tax rate limitations.

5. The City Treasurer is authorized and directed to open a separate depositary account with a bank or trust company designated by the City Council, to be designated JUDGMENT BONDS JUDGMENT FUND (the “Judgment Fund”) and deposit into said Judgment Fund the proceeds of the Bonds less accrued interest and premium, if any, which shall be deposited into the Debt Retirement Fund. The moneys in the Judgment Fund shall be used solely for payment of the Judgment and the costs of issuance of the Bonds.

6. The Bonds shall be in substantially the following form:

UNITED STATES OF AMERICA

STATE OF MICHIGAN

COUNTIES OF MIDLAND AND BAY

CITY OF MIDLAND

GENERAL OBLIGATION JUDGMENT FUNDING BOND (LIMITED TAX), SERIES 2008

Date of

Interest Rate Maturity Date Original Issue CUSIP

Registered Owner:

Principal Amount: Dollars

KNOW ALL MEN BY THESE PRESENTS, that the CITY OF MIDLAND, Counties of Midland and Bay, State of Michigan (the “Issuer”), acknowledges itself to owe and for value received hereby promises to pay to the Registered Owner specified above, or registered assigns, the Principal Amount specified above, in lawful money of the United States of America, unless redeemed prior to maturity on the Maturity Date specified above with interest thereon until paid from the Date of Original Issue specified above or such later date to which interest has been paid, at the Interest Rate per annum specified above, first payable on November 1, 2008 and semiannually thereafter. Principal of this bond is payable at the corporate trust office of ___ ____________________, Detroit, Michigan or such other transfer agent as the Issuer may hereafter designate by notice mailed to the registered owner not less than sixty (60) days prior to an interest payment date (the “Transfer Agent”). Interest on this bond is payable to the registered owner of record as of the 15th day of the month preceding the interest payment date as shown on the registration books of the Issuer kept by the Transfer Agent by check or draft mailed by the Transfer Agent to the registered owner of record at the registered address. For prompt payment of this bond, both principal and interest, the full faith, credit and resources of the Issuer are hereby irrevocably pledged.

This bond is one of a series of bonds aggregating the principal sum of $17,890,000, issued for the purpose of paying part of the costs of a judgment against the Issuer and paying costs incidental to the issuance of the bonds. This bond is issued under the provisions of Section 6097 of Act 236, Public Acts of Michigan, 1961, as amended and a resolution duly adopted by the City Council of the Issuer on May 19, 2008. This bond is payable as a first budget obligation from the general funds of the Issuer and from taxes which may be imposed on all taxable property in the City, subject to applicable constitutional, statutory and charter tax rate limitations.

Bonds of this issue maturing in the year 2009 through 2018, inclusive shall not be subject to redemption prior to maturity. Bonds maturing in the years 2019 through 2023, inclusive shall be subject to redemption at the option of the Issuer, in such order as the Issuer shall determine, on any date on or after May 1, 2018, at par and accrued interest.

Notice of redemption of any bond or portion thereof shall be given by the Transfer Agent at least thirty (30) days prior to the date fixed for redemption by mail to the registered owner at the registered address shown on the registration books kept by the Transfer Agent. Bonds shall be called for redemption in multiples of $5,000 and any bond of a denomination of more than $5,000 shall be treated as representing the number of bonds obtained by dividing the denomination of the bond by $5,000 and such bond may be redeemed in part. Notice of redemption for a bond redeemed in part shall state that upon surrender of the bond to be redeemed a new bond or bonds in aggregate principal amount equal to the unredeemed portion of the bonds surrendered shall be issued to the registered owner thereof. No further interest on a bond or portion thereof called for redemption shall accrue after the date fixed for redemption, whether presented for redemption or not, provided funds are on hand with the Transfer Agent to redeem the bond or portion thereof.

This bond is transferable only upon the registration books of the Issuer kept by the Transfer Agent by the registered owner of record in person, or by the registered owner’s attorney duly authorized in writing, upon the surrender of this bond together with a written instrument of transfer satisfactory to the Transfer Agent duly executed by the registered owner or the registered owner’s attorney duly authorized in writing, and thereupon a new registered bond or bonds in the same aggregate principal amount and of the same maturity shall be issued to the transferee in exchange therefor as provided in the resolution authorizing this bond and upon the payment of the charges, if any, therein prescribed.

This bond is payable out of the Issuer’s Debt Retirement Fund for this issue, and it is hereby certified and recited that all acts, conditions and things required by law to be done, precedent to and in the issuance of this bond and the series of bonds of which this is one, exist and have been done and performed in regular and due form and time as required by law, and that the total indebtedness of the Issuer, including this bond, does not exceed any constitutional, statutory or charter debt limitation.

This bond is not valid or obligatory for any purpose until the Transfer Agent’s Certificate of Authentication on this bond has been executed by the Transfer Agent.

IN WITNESS WHEREOF, the Issuer, by its legislative body, has caused this bond to be signed in the name of the Issuer by the facsimile signatures of its Mayor and City Clerk and a facsimile of its corporate seal to be printed hereon, all as of the Date of Original Issue.

CITY OF MIDLAND

State of Michigan

By____________________________

Its Mayor

(SEAL)

By____________________________

Its City Clerk

(Form of Transfer Agent’s Certificate of Authentication)

CERTIFICATE OF AUTHENTICATION

This bond is one of the bonds described in the within-mentioned resolution.

Detroit, Michigan,

Transfer Agent

By ______________________

Authorized ___________

DATE OF REGISTRATION:

[Bond printer to insert form of assignment]

7. The City Clerk shall cause to be published a notice of sale of the Bonds in the Bond Buyer, New York, New York, which notice of sale shall be in substantially the following form:

OFFICIAL NOTICE OF SALE

$17,890,000

CITY OF MIDLAND

Counties of Midland and Bay

State of Michigan

GENERAL OBLIGATION JUDGMENT FUNDING BONDS (LIMITED TAX), SERIES 2008

SEALED BIDS for the purchase of the above bonds will be received by the undersigned at the offices of the Municipal Advisory Council of Michigan, 1445 First National Building, Detroit, Michigan 48226 on Monday, the __ day of ______, 2008, until __:00 o’clock _.m. Eastern Daylight Savings Time, at which time and place said bids will be publicly opened and read.. (The City will consider the bids on that date and either award or reject the bids on that day of business.)

FAXED BIDS: Signed bids may be submitted by members of the Municipal Advisory Council of Michigan to the offices of the Municipal Advisory Council of Michigan at (313) 963-0943; provided that faxed bids must arrive before the time of sale and the bidder bears all risks of transmission failure and the GOOD FAITH DEPOSIT MUST BE MADE AND RECEIVED as described in the section contained “GOOD FAITH” below.

ELECTRONIC BIDS: Electronic bids will also be received on the same date and until the same time by Bidcomp/Parity as agent of the undersigned. Further information about Bidcomp/Parity, including any fee charged, may be obtained from Bidcomp/Parity, Anthony Leyden or CLIENT SERVICES, 1359 Broadway, Second Floor, New York, New York 10018, (212) 849-5021. NO ELECTRONIC BID WILL BE ACCEPTED UNLESS THE BIDDER HAS SUBMITTED A FINANCIAL SURETY BOND OR A CERTIFIED OR CASHIERS CHECK IN THE AMOUNT DESCRIBED IN THE SECTION CAPTIONED “GOOD FAITH” BELOW. IF ANY PROVISIONS OF THIS NOTICE OF SALE SHALL CONFLICT WITH INFORMATION PROVIDED BY BIDCOMP/PARITY, AS THE APPROVED PROVIDER OF ELECTRONIC BIDDING SERVICES, THIS NOTICE OF SALE SHALL CONTROL.

Bidders may choose any means or location to present bids but a bidder may not present a bid in more than one location or by more than one means.

BOND DETAILS: Said bonds will be registered bonds of the denomination of $5,000, or multiples thereof not exceeding for each maturity the maximum principal amount of that maturity, originally dated as of the date of their delivery to the purchaser thereof, numbered in order of registration, and will bear interest from their date payable on November 1, 2008, and semiannually thereafter.

The bonds will mature on the 1st day of May of each of the years, as follows:

$ 930,000 2009 and 2010;

965,000 2011;

1,000,000 2012;

1,040,000 2013;

1,085,000 2014;

1,130,000 2015;

1,175,000 2016;

1,220,000 2017;

1,270,000 2018;

1,320,000 2019;

1,370,000 2020;

1,425,000 2021;

1,485,000 2022;

1,545,000 2023.

PRIOR REDEMPTION: Bonds of this issue maturing in the years 2009 to 2018, inclusive, are not subject to redemption prior to maturity. Bonds or portions of bonds in multiples of $5,000 maturing in the year 2019 and thereafter may be redeemed at the option of the Issuer, in such order as the Issuer shall determine and within any maturity by lot, on any date on or after May 1, 2018 at par and accrued interest to the date fixed for redemption.

Notice of redemption of any bond or portion thereof shall be given by the transfer agent at least thirty (30) days prior to the date fixed for redemption by mail to the registered owner at the registered address shown on the registration books kept by the transfer agent. Bonds shall be called for redemption in multiples of $5,000 and any bond of a denomination of more than $5,000 shall be treated as representing the number of bonds obtained by dividing the denomination oft he bond by $5,000 and such bond may be redeemed in part. Notice of redemption for a bond redeemed in part shall state that upon surrender of the bond to be redeemed a new bond or bonds in aggregate principal amount equal to the unredeemed portion of the bonds surrendered shall be issued to the registered owner thereof. No further interest on a bond or portion thereof called for redemption shall accrue after the date fixed for redemption, whether presented for redemption or not, provided funds are on hand with the transfer agent to redeem the bond or portion thereof.

TERM BOND OPTION: Bidders shall have the option of designating bonds maturing in the years 2019 through 2023, inclusive, as serial bonds, term bonds, or both. The bid must designate whether each of the principal amounts shown above for the years 2019 through 2023, inclusive, represent a serial maturity or a mandatory redemption requirement for a term bond maturity. Bonds maturing in the years 2019 through 2023, inclusive, shall be represented by either a serial bond maturity or mandatory redemption requirement, or both. Any such designation must be made at the time bids are submitted.

BOOK-ENTRY ONLY: The bonds will be issued in book-entry only form as one fully registered bond per maturity and will be registered in the name of Cede & Co., as bondholder and nominee for The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository for the bonds. Purchase of the bonds will be made in book-entry-only form, in the denomination of $5,000 or any multiples thereof. Purchasers will not receive certificates representing their interest in bonds purchased. The book-entry-only system is described further in the preliminary official statement for the bonds.

INTEREST RATE AND BIDDING DETAILS: The bonds shall bear interest at a rate or rates not exceeding 6% per annum, to be fixed by the bids therefor, expressed in multiples of 1/8 or 1/20 of 1%, or both. The interest on any one bond shall be at one rate only and all bonds maturing in any one year must carry the same interest rate. The interest rate bid for each maturity shall be equal to or greater than the interest rate bid for the preceding maturity. The difference between the highest and lowest interest rates bid shall not exceed 2%. No proposal for the purchase of less than all of the bonds or at a price less than 98.75% of their par value will be considered.

TRANSFER AGENT AND REGISTRATION: Principal and interest shall be payable at _________________________, Detroit, Michigan, or such other transfer agent as the City of Midland (the “Issuer”) may hereafter designate by notice mailed to the registered owner of record not less than 60 days prior to an interest payment date. Interest shall be paid by check or draft mailed to the registered owner of record as shown on the registration books kept by the transfer agent as of the 15th day prior to an interest payment date. The bonds will be transferred only upon the registration books of the Issuer kept by the transfer agent.

PURPOSE AND SECURITY: The bonds are issued for the purpose of paying the costs of complying with a certain judgment entered against the Issuer by the State of Michigan Tax Tribunal and to pay the costs of issuance of the bonds. The bonds will pledge the full faith and credit of the Issuer for payment of the principal and interest thereon and are a first budget obligation of the Issuer payable from its general funds and ad valorem taxes which may be imposed on all taxable property of the City, subject to applicable constitutional, statutory and charter tax rate limitations. The rights or remedies of bondholders may be affected by bankruptcy insolvency, fraudulent conveyance or other laws affecting creditors’ rights generally now existing or hereafter enacted and by the application of general principles of equity including those relating to equitable subordination.

GOOD FAITH: A certified or cashier’s check drawn upon an incorporated bank or trust company or a Financial Surety Bond, in the amount of $357,800 and payable to the order of the Treasurer of the Issuer is required for each bid as a guarantee of good faith on the part of the bidder, to be forfeited as liquidated damages if such bid be accepted and the bidder fails to take up and pay for the bonds. If a check is used, it must accompany each bid. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Michigan and such bond must be submitted to the Issuer or its financial advisor prior to the opening of the bids. The Financial Surety Bond must identify each bidder whose good faith deposit is guaranteed by such Financial Surety Bond. If the bonds are awarded to a bidder utilizing a Financial Surety Bond, then the purchaser (the “Purchaser”) is required to submit its good faith deposit to the Issuer or its financial advisor in the form of a cashier’s check (or wire transfer such amount as instructed by the Issuer or its financial advisor) not later than Noon, Eastern Time, on the next business day following the award. If such good faith deposit is not received by that time, the Financial Surety Bond may be drawn by the Issuer to satisfy the good faith deposit requirement. The good faith deposit will be applied to the purchase price of the bonds. In the event the Purchaser fails to honor its accepted bid, the good faith deposit will be retained by the Issuer. No interest shall be allowed on the good faith check and checks of the unsuccessful bidders will be returned to each bidder’s representative or by United Parcel Service Co. - Next Day Air Service. The good faith check of the successful bidder will be cashed and payment of the balance of the purchase price of the bonds shall be made at the closing.

AWARD OF BONDS: The bonds will be awarded to the bidder whose bid produces the lowest true interest cost determined in the following manner: the lowest true interest cost will be the single interest rate (compounded on November 1, 2008 and semi annually thereafter) necessary to discount the debt service payments from their respective payment dates to _____, 2008, in an amount equal to the bid price, excluding accrued interest.

TAX MATTERS: In the opinion of bond counsel, assuming compliance with certain covenants, interest on the bonds is excluded from gross income for federal income tax purposes as described in the opinion, and the bonds and interest thereon are exempt from all taxation in the State of Michigan except inheritance taxes and taxes on gains realized from the sale, payment or other disposition thereof. Provided, however, that under the Michigan Business Tax Act, (the “MBTA”) which became effective January 1, 2008 , as long as the interest on the Bonds qualifies for exclusion from gross income for federal income tax purposes, such interest will be excluded for purposes of calculating the Business Income Tax component of the Michigan Business Tax. The MBTA does not provide for an exclusion of the interest of the Bonds from “gross receipts” for purpose of the Modified Gross Receipts component of the Michigan Business Tax. The successful bidder will be required to furnish, prior to the delivery of the bonds, a certificate in a form acceptable to bond counsel as to the “issue price” of the bonds within the meaning of Section 1273 of the Internal Revenue Code of 1986.

LEGAL OPINION: Bids shall be conditioned upon the unqualified approving opinion of Miller, Canfield, Paddock and Stone, P.L.C., attorneys of Detroit, Michigan, a copy of which opinion will be printed on the reverse side of each bond and the original of which will be furnished without expense to the purchaser of the bonds at the delivery thereof. The fees of Miller, Canfield, Paddock and Stone, P.L.C. for services rendered in connection with such approving opinion are expected to be paid from bond proceeds. Except to the extent necessary to issue its unqualified approving opinion as to validity of the above bonds, Miller, Canfield, Paddock and Stone, P.L.C. has not been requested to examine or review and has not examined or reviewed any financial documents, statements or materials that have been or may be furnished in connection with the authorization, issuance or marketing of the bonds, and accordingly will not express any opinion with respect to the accuracy or completeness of any such financial documents, statements or materials.

DELIVERY OF BONDS: The Issuer will furnish bonds ready for execution at its expense. Bonds will be delivered without expense to the purchaser at a place to be agreed upon. The usual closing documents, including a certificate that no litigation is pending affecting the issuance of the bonds, will be delivered at the time of delivery of the bonds. If the bonds are not tendered for delivery by twelve o’clock noon, Eastern Time, on the 45th day following the date of sale, or the first business day thereafter if said 45th day is not a business day, the successful bidder may on that day, or any time thereafter until delivery of the bonds, withdraw his proposal by serving notice of cancellation, in writing, on the undersigned in which event the Issuer shall promptly return the good faith deposit. Payment for the bonds shall be made in Federal Reserve Funds. Accrued interest to the date of delivery of the bonds shall be paid by the purchaser at the time of delivery. Unless the purchaser furnishes the transfer agent with a list giving the denominations and names in which it wishes to have the certificates issued at least 5 business days prior to the delivery of the bonds, the bonds will be delivered in the form of a single certificate for each maturity registered in the name of the purchaser.

CUSIP NUMBERS: It is anticipated that CUSIP identification numbers will be printed on the bonds, but neither the failure to print such numbers on any bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the bonds in accordance with terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the bonds shall be paid for by the Issuer; provided, however, that the CUSIP Service Bureau charge for the assignment of such numbers shall be the responsibility of and shall be paid for by the purchaser.

FINANCIAL CONSULTANT: Additional information may be obtained from Stauder, Barch & Associates, Inc., 3989 Research Park Drive, Ann Arbor, Michigan 48108 .

OFFICIAL STATEMENT: A copy of the Official Statement may be obtained by contacting Stauder, Barch & Associates, Inc., at the above address or telephone (734) 668-6688. The Official Statement is in a form deemed final as of the date by the Issuer for purposes of SEC Rule 15c2‑12(b)1, but is subject to revision, amendment and completion of a final Official Statement. The successful bidder shall supply to the Issuer within twenty-four hours after the award of the bonds, all pricing information and any underwriter identification determined by the Issuer to be necessary to complete the Official Statement.

The Issuer will furnish to the successful bidder, at no cost, a reasonable number of copies of the final Official Statement within seven business days after the award of the bonds. Additional copies will be supplied upon the bidder’s agreement to pay the cost of the Issuer for those additional copies.

The Issuer shall deliver, at closing, an executed certificate to the effect that as of the date of delivery the information contained in the Official Statement, including revisions, amendments and completions as necessary, relating to the Issuer and the bonds is true and correct in all material respects, and that such Official Statement does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

CONTINUING DISCLOSURE: As described more fully in the Official Statement, the Issuer will agree in the Resolution awarding the Bonds to provide or cause to be provided, in accordance with the requirements of Rule 15c2-12 (the “Rule”) promulgated by the Securities and Exchange Commission (i) on or prior to the 180th day after the end of the fiscal year of the Issuer, commencing with the fiscal year ended June 30, 2008, certain annual financial information and operating data, including audited financial statements for the preceding fiscal year, generally consistent with the information contained or cross-referenced in the Official Statement relating to the Bonds, (ii) timely notice of the occurrence of certain material events with respect to the Bonds and (iii) timely notice of a failure by the Issuer to provide the required annual financial information on or before the date specified in (i) above.

“NOT QUALIFIED TAX EXEMPT OBLIGATIONS”: The Issuer will not designate the bonds as “qualified tax exempt obligations” for purposes of deduction of interest by financial institutions.

BOND INSURANCE AT PURCHASER’S OPTION: If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the bidder/purchaser, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the Issuer has requested and received a rating on the bonds from a rating agency, the Issue will pay the fee for the requested rating. Any other rating agency fees shall be the responsibility of the purchaser. FAILURE OF THE MUNICIPAL BOND INSURER TO ISSUE THE POLICY AFTER THE BONDS HAVE BEEN AWARDED TO THE PURCHASER SHALL NOT CONSTITUTE CAUSE FOR FAILURE OR REFUSAL BY THE PURCHASER TO ACCEPT DELIVERY OF THE BONDS FROM THE ISSUER.

THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS.

ENVELOPES containing the bids should be plainly marked “Proposal for Judgment Funding Bonds.”

Selina Tisdale

City Clerk

8. The Issuer shall not invest, reinvest or accumulate any moneys deemed to be proceeds of the bonds pursuant to Sections 103(a) and 148 of the Internal Revenue Code of 1986, as amended, (the “Code”) and the applicable regulations thereunder, in such a manner as to cause the bonds to be “arbitrage bonds” within the meaning of said Sections 103(a) and 148 and the applicable regulations thereunder.

9. The City covenants it shall comply with the requirements of Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) regarding continuing disclosure and appoints the City Director of Fiscal Services as its Disclosure Representative in accordance with the Rule.

10. In the event cash or direct obligations of the United States or obligations the principal of and interest on which are guaranteed by the United States, or a combination thereof, the principal of and interest on which, without reinvestment, come due at times and in amounts sufficient to pay at maturity or irrevocable call for earlier optional redemption, the principal of, premium, if any, and interest on the Bonds, shall be deposited in trust, this resolution shall be defeased and the owners of the Bonds shall have no further rights under this resolution except to receive payment of the principal of, premium, if any, and interest on the Bonds from the cash or securities deposited in trust and the interest and gains thereon and to transfer and exchange Bonds as provided herein.

11. The Mayor, City Clerk, City Treasurer, City Manager, and City Director of Fiscal Services(the “Authorized Officers”), or any one of them, are hereby authorized and directed to execute the standard form of DTC Letter of Representations on behalf of the City. The Authorized Officers are further severally authorized to do all other acts and to take all other actions and procedures required to effectuate the sale, issuance and delivery of the Bonds including, but not limited to, the purchase of municipal bond insurance if such purchase is cost effective to the City and the approval of a preliminary and final official statement.

12. The City Manager and Director of Fiscal Services be and are hereby authorized to receive sealed bids for the Bonds in accordance with the Official Notice of Sale. The City Manager and Director of Fiscal Services are hereby authorized to award the Bonds to the successful bidder in behalf of the City, upon advice of the City’s financial advisor and bond counsel, that such bids are in conformity with this Resolution and the Notice of Sale and produce the lowest rate of interest to the City.

13. 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.)

SITE PLAN NO. 278

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

WHEREAS, the City Council has received the recommendation of the City Planning Commission for approval of Site Plan No. 278, the request of Wolgast Corporation on behalf of Central Property Development for a 50,000 square foot building located at 2837 Schuette Road on 4.5 acres; and

WHEREAS, the City Council has reviewed the proposed Site Plan No. 278 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. 278, 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 landscaping shall comply with Article 6 of the Zoning Ordinance.

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

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

5. All parking spaces shall comply with Section 5.01D of the Zoning Ordinance and be delineated by the “box” style striping.

6. The location, access and flow of the proposed fire hydrants shall be in accordance with the City of Midland Fire Department specifications.

(Motion ADOPTED.)

PETITION TO CLOSE GOLDENWOOD DRIVE

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

WHEREAS, a report has been received from the City Engineer indicating that a petition has been received from the residents of Amberwood Subdivision to close Goldenwood Drive; and

WHEREAS, an initial review of the petition indicates that the petition satisfies initial submittal criteria for accepting the petition in accordance with the City established policy for closure of local residential streets; now therefore

RESOLVED, that the Goldenwood Drive closure petition is hereby accepted and that staff is directed to prepare a full report with regard to the impacts of the potential street closure. (Motion ADOPTED.)

DDA RESIGNATION - FLEMING

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

RESOLVED, that the resignation of Father Fleming as a member of the Downtown Development Authority is hereby accepted and the Administration is directed to convey the Council’s appreciation to Father Fleming for his service on this important Board. (Motion ADOPTED.)

FIREWORKS DISPLAY REQUEST – SCHLICKER

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

RESOLVED, that the request from Bob and Gail Schlicker to conduct a fireworks display for their daughter’s wedding on the evening of Saturday, June 7, 2008, at the Midland County Fairgrounds, is hereby approved subject to meeting the following requirements:

• The fireworks display company must provide a certificate of liability insurance at least five (5) days before the event, naming the City of Midland as certificate holder and additional insured. Minimum coverage must be $1,000,000 per occurrence, $5,000,000 aggregate.
• A site plan with adequate setbacks must be submitted to the Fire Marshal for review.
• A site inspection must be conducted by the Fire Department prior to the shoot.
• Spectators shall not be allowed in the fallout area.

(Motion ADOPTED.)

ROCK THE TRIDGE EVENT

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

RESOLVED, that the request from the Downtown Development Authority to conduct the “ROCK the Tridge” event in the Farmers Market area on Thursday, August 21, 2008, is hereby approved subject to the following conditions:

• The Rock Youth Center and the Shelterhouse must provide Special Event Liability Insurance in the amount of $1,000,000 per occurrence, $2,000,000 aggregate, with the City of Midland named as an Additional Insured. This certificate of insurance must be submitted to the City Manager’s Office no less than five working days prior to the event. (The DDA already has an insurance certificate on file with the City).

• A comprehensive list of activities must be provided to the City Manager’s Office prior to the event.
• Special Event Sign procedures must be followed.

; and

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

2008 EASTLAWN DRIVE RECONSTRUCTION; CONTRACT NO. 1

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

WHEREAS, sealed proposals have been advertised and received in accord with Article II of Chapter 2 of the Midland Code of Ordinances for reconstruction and resurfacing of Eastlawn Drive from Jefferson Avenue to Washington Street; and

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

RESOLVED, that the low sealed proposal submitted by Central Asphalt, Inc. of Mt. Pleasant, Michigan, for the "2008 Eastlawn Drive Reconstruction; Contract No. 1", in the indicated amount of $252,088.00, 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.)

LAND APPLICATION OF BIOSOLIDS - WWTP

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

WHEREAS, in June 2006, Council approved the low bid submitted by Biotech Agronomics of Benzonia, Michigan to provide the removal and land application of up to 3,250,000 gallons per year of biosolids for a three-year term, at a rate of $0.0296 per gallon; and

WHEREAS, the City is in the second year of the three-year term with Biotech and staff has been unsuccessful in getting Biotech to remove the stored biosolids per the terms of the agreement, causing a change in the method of recycling biosolids to belt pressing and then composting at the City’s Landfill, which is more costly than land applying; and

WHEREAS, staff has negotiated with Synagro of Michigan, Inc., the only other known biosolids hauler, to remove and land apply as much of the stored biosolids as the current Wastewater Fund budget will allow ($29,700.00), at a rate of $0.0306 per gallon (increase of 3.4% over current agreement); and

WHEREAS, funding has been budgeted in the 2007/08 Wastewater Fund account #590-8144-811.81-92 - Sludge Hauling; now therefore

RESOLVED, competitive bids are hereby waived as impractical, and authorization of a purchase order is given to Synagro of Michigan, Inc. in an amount not to exceed $29,700.00 for the removal and land application of biosolids from the Wastewater Treatment Plant, in accord with Sec. 2-18 of the Code of Ordinances for the City of Midland. (Motion ADOPTED.)

UNLEADED FUEL PURCHASE

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

WHEREAS, City Council adopted a resolution on December 17, 2007 that allows the Purchasing Agent to purchase full tankers of unleaded gasoline and diesel fuel exceeding $20,000, and seek approval for the purchase at the next City Council meeting; and

WHEREAS, the volatility of the fuel market does not allow for staff to follow the usual sealed bid process for purchases exceeding $20,000; and

WHEREAS, staff instead uses a competitive bid process whereby fuel vendors fax in prices that are valid for a particular day with the bid awarded to the lowest priced vendor; now therefore

RESOLVED, that the requirements for sealed proposals for the purchase of fuel are waived due to the volatility of the fuel market; and

RESOLVED FURTHER, that the purchase of 12,500 gallons of unleaded fuel from Hirschman Oil of Reese, Michigan for $39,000 executed by the Purchasing Agent on May 7, 2008, is hereby approved. (Motion ADOPTED.)

DIESEL FUEL PURCHASE

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

WHEREAS, City Council adopted a resolution on December 17, 2007 that allows the Purchasing Agent to purchase full tankers of unleaded gasoline and diesel fuel exceeding $20,000, and seek approval for the purchase at the next City Council meeting; and

WHEREAS, the volatility of the fuel market does not allow for staff to follow the usual sealed bid process for purchases exceeding $20,000; and

WHEREAS, staff instead uses a competitive bid process whereby fuel vendors fax in prices that are valid for a particular day with the bid awarded to the lowest priced vendor; now therefore

RESOLVED, that the requirements for sealed proposals for the purchase of fuel are waived due to the volatility of the fuel market; and

RESOLVED FURTHER, that the purchase of 12,500 gallons of diesel fuel from Hirschman Oil of Reese, Michigan for $43,037.50, executed by the Purchasing Agent on April 22, 2008, is hereby approved. (Motion ADOPTED.)

CONDITIONAL USE PERMIT NO. 29

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

WHEREAS, Renee Johnson submitted a request for a conditional use permit review and approval for a group child day care in a Residential A-1 Zoning District at 6112 Partridge Lane on 0.3 acres; and

WHEREAS, the City Planning Commission has conducted a public hearing in accord with Section 28.02(A) of the Zoning Ordinance of the City of Midland on said conditional use; and

WHEREAS, the Planning Commission has submitted its recommendation of approval, in accord with Section 28.02(B) of the Zoning Ordinance of the City of Midland; now therefore

RESOLVED, that notice is hereby given that a public hearing will be held by the City Council on June 9, 2008, at 7:00 p.m. in the Council Chambers, City Hall, for the purpose of considering the request for a conditional use permit; and

RESOLVED FURTHER, that the City Clerk is hereby directed to notify property owners and occupants within three hundred (300) feet of the area proposed by transmitting notice on May 23, 2008 and to publish said notice on May 24, 2008. (Motion ADOPTED.)

ZONING PETITION NO. 550

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

WHEREAS, a public hearing was held by the Planning Commission on Tuesday, May 13, 2008 for property located at 1618 Dilloway Drive for the purpose of considering the advisability of amending the Zoning Map of Ordinance No. 1585, the Zoning Ordinance of the City of Midland; now therefore

RESOLVED, that notice is hereby given that a public hearing will be held by the City Council on Monday, June 9, 2008, at 7:00 p.m. in the Council Chambers, City Hall, for the purpose of considering the advisability of amending the Zoning Map of Ordinance No. 1585, the Zoning Ordinance of the City of Midland, as set forth in the following proposed Ordinance, which is hereby introduced and given first reading; and

RESOLVED FURTHER, that the City Clerk is hereby directed to notify property owners within three hundred (300) feet of the area proposed to be rezoned by transmitting notice on May 23, 2008 and to publish said notice on May 24, 2008.

ORDINANCE NO. ______

AN ORDINANCE TO AMEND ORDINANCE NO. 1585, BEING AN ORDINANCE TO REGULATE AND RESTRICT THE LOCATION OF TRADES AND INDUSTRIES AND THE LOCATION OF BUILDINGS DESIGNED FOR SPECIFIC USES, TO REGULATE AND LIMIT THE HEIGHT AND BULK OF BUILDINGS HEREAFTER ERECTED OR ALTERED, TO REGULATE AND DETERMINE THE AREA OF YARDS, COURTS, AND OTHER OPEN SPACES SURROUNDING BUILDINGS, TO REGULATE AND LIMIT THE DENSITY OF POPULATION, AND FOR SAID PURPOSES, TO DIVIDE THE CITY INTO DISTRICTS AND PRESCRIBE PENALTIES FOR THE VIOLATION OF ITS PROVISIONS BY AMENDING THE ZONING MAP TO PROVIDE AN OFFICE SERVICE ZONING WHERE A RESIDENTIAL A-1 ZONING DISTRICT PRESENTLY EXISTS.

The City of Midland Ordains:

Section 1. That the Zoning Map of Ordinance No. 1585, being the Zoning Ordinance of the City of Midland, is hereby amended as follows:

Lot 2 of Cutler Subdivision, exception the West 7 feet, thereof, as recorded in Liber B of Plats, page 34.

Be, and the same is hereby changed to Office Service.

Section 2. All Ordinances or parts of Ordinances in conflict herewith are hereby repealed only to the extent necessary to give this Ordinance full force and effect.

Section 3. This Ordinance shall take effect upon publication. (Motion ADOPTED.)

ALLOY CONSTRUCTION SERVICE, INC. – IFT APPLICATION

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

RESOLVED, that an application dated May 14, 2008, was received May 14, 2008, from Alloy Construction Service, 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 tax exemption certificate within The Dow Chemical Waldo Avenue Industrial Development District No.1 relating to new real and personal property to build and equip Alloy Construction’s new headquarters, consisting of a manufacturing facility of about 24,000 square feet and an office facility of about 7,500 square feet with a total project cost of $2,230,000, to allow further expansion in The Dow Chemical Waldo Avenue Industrial Development District No. 1 is hereby acknowledged received and ordered placed on file in the City Clerk's office; and

RESOLVED FURTHER, that a hearing shall be held before the City Council on Monday, June 9, 2008, at 7:00 p.m., in the Council Chambers of the 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.)

ALLOY CONSTRUCTION SERVICE, INC. – BROWNFIELD REDEVELOPMENT PLAN

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

WHEREAS, the City Council of the City of Midland has received and reviewed testimony that there are or may be certain environmentally distressed, blighted, or economically distressed areas in the City of Midland and that the continued existence of such areas can limit, hinder, or delay the redevelopment or revitalization of identifiable zones within the City, and, accordingly, that it is in the best interests of the public to facilitate the implementation of plans relating to the identification and treatment of environmentally distressed areas so as to promote revitalization within the City of Midland (the “Brownfield Redevelopment Zone”); and

WHEREAS, in order to further such interests, it is appropriate for the City Council to approve a Brownfield Redevelopment Authority within the City of Midland pursuant to and in accord with the provisions of the Brownfield Redevelopment Authority Act, being Act 381 of the Public Acts of the State of Michigan of 1996, as amended (the “Act”); and

WHEREAS, pursuant to the Act, this Council is required (a) to hold a public hearing on the approval of a proposed Brownfield Redevelopment Plan under the Act (the “Plan”) and (b) to publish notice of said public hearing to be published in the Midland Daily News, a newspaper of general circulation in the City of Midland, all in accord with Section 4(2) of the Act; now therefore

RESOLVED, that:

1. The City Council hereby determines that it is in the best interests of the public to promote the redevelopment of environmentally distressed, blighted, or economically distressed areas of the City of Midland, and in order to do so, to facilitate the implementation of brownfield plans relating to the designation and treatment of such areas within brownfield redevelopment zones.

2. The City Council hereby declares its intention to implement a Brownfield Redevelopment Plan within the City of Midland pursuant to and in accord with the provisions of the Act.

3. A public hearing shall be held before the City Council on Monday, the 9^th of June, 2008, at 7:00 p.m., in the City Hall in the City of Midland on the proposed approval of a Brownfield Redevelopment Plan.

4. In accordance with the provisions of Act 381, the City Clerk shall give notice of the public hearing to each of the taxing jurisdictions that levy taxes on property included in the project subject to capture under Act 381.

5. The City Clerk shall give notice to the public of the public hearing by causing notice to be published in the form attached hereto as Exhibit A, in the Midland Daily News, a newspaper of general circulation in the City of Midland and by posting notice of the public hearing, in the form attached hereto as Exhibit B, pursuant to the practice of the City Clerk.

(Motion ADOPTED.)

PROPOSED 2007-08 WASTEWATER FUND BUDGET AMENDMENT

The following resolution was offered by Councilman Adams and seconded by Councilman Donker:

RESOLVED, that in accord with Section 11.6 of the Charter of the City of Midland, a public hearing shall be conducted at 7:00 p.m. on Monday, June 9, 2008, in the Council Chambers of City Hall on the proposal to amend the 2007-08 Wastewater Fund budget to increase appropriations by $115,441.00 from working capital for the purchase of one set of arms and one center column for the east filter, and one center column for the west filter at the Wastewater Treatment Plant. (Motion ADOPTED.)

NEW BUSINESS:

WOLVERINE BANK – REQUEST TO PLACE BANNERS

Assistant City Manager Jack Duso presented information on a request from Wolverine Bank to place banners in the public right-of-way. The following resolution was then offered by Councilman McKeag and seconded by Councilman Rokosz:

RESOLVED, that in accord with Section 22-2 of the Code of Ordinances, the request from Wolverine Bank seeking permission to place temporary banners in the public right-of-way in front of their Eastman Avenue and S. Saginaw Road locations from May 31 through June 14, 2008, to advertise their 75^th anniversary celebration, is hereby approved subject to the following conditions:

• Angled banners located in the north and south ends of the property must meet City clear vision requirements as determined by the Building Department. John Wegner, Chief Building Inspector, 837-3390, can assist with proper placement, if necessary.
• Banners located within the outlawn area along Saginaw Road may be installed if they are outside the regular 20’ clear vision zone in the driveway approaches. If determined that these banners are vision obstructions to traffic during field review, the banners will either need to be relocated to an area that is not considered a vision obstruction or they will be removed.
• Banners located within the State right-of-way along Eastman Avenue will require MDOT approval.

(Motion ADOPTED.)

Being no further business the meeting adjourned at 8:26 p.m.

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Selina Tisdale, City Clerk