February 13, 2012

 

A regular meeting of the City Council was held on Monday, February 13, 2012, at 7:00 p.m. in the Council Chambers of City Hall.  Mayor Donker presided.  The Pledge of Allegiance to the Flag was recited in unison.

 

Councilmen present:

Thomas Adams, J. Dee Brooks, Diane Brown, Maureen Donker, Marty Wazbinski

Councilmen absent:

None

 

MINUTES

Approval of the minutes of the January 28, 2012 special and January 30, 2012 regular meetings was offered by Councilman Adams and seconded by Councilman Brown.  (Motion ADOPTED.)

 

WALK FOR WARMTH DAY

Community Relations Director Selina Tisdale introduced Marilyn Rease, Midland County Outreach Coordinator for MidMichigan Community Action Agency of Midland County.  The following resolution was offered by Councilman Brown and seconded by Councilman Wazbinski:

 

RESOLVED, that the Mayor is authorized to issue the attached proclamation designating February 25, 2012 as Walk for Warmth Day in Midland.  (Motion ADOPTED.)  Mayor Donker presented Marilyn Rease with the proclamation.

 

CIVIC ARENA FUND BUDGET AMENDMENT - ZAMBONI

Assistant City Manager for Financial Services David Keenan presented an amendment to the Civic Arena Fund budget to recognize $76,200 of unanticipated revenue in the form of a refund from the Equipment Revolving Fund and to increase capital expenditures to allow these funds to purchase a new Zamboni.  A public hearing opened at 7:10 p.m., recognizing no public comments, the hearing closed at 7:10 p.m.  The following resolution was then offered by Councilman Wazbinski and seconded by Councilman Brooks:

 

WHEREAS, in accord with Sections 5.11, 11.4, and 11.6 of the Charter of the City of Midland, and after having given proper legal notice, and having conducted a public hearing on Monday, February 13, 2012, on the proposal to amend the Civic Arena Fund budget to recognize $76,200 of unanticipated revenue in the form of a refund from the Equipment Revolving Fund, and to increase capital expenditures by the same to allow these funds to be used towards the purchase of a new Zamboni; now therefore

RESOLVED, that the Civic Arena Fund 2011-12 budget shall be amended to increase revenues and expenditures by $76,200 as described above to provide budgetary authorization to purchase a new Zamboni; and

RESOLVED FURTHER, City Council authorizes the City Purchasing Agent to issue a purchase order in the amount of $92,925.03 for a new Zamboni 545 with the funding now available in the 2011-12 Civic Arena Budget.  (Motion ADOPTED.)

 

INDUSTRIAL FACILITIES TAX EXEMPTION CERTIFICATE APPLICATIONS

City Assessor Reid Duford presented three requests for Industrial Facilities Tax Exemption Certificates.  Rich Wells, Vice President and Site Director for Dow’s Michigan Operations spoke regarding all three projects.  The following three resolutions were then presented for consideration.

 

DOW AGROSCIENCES, LLC IFT APPLICATION  (NexD Project)

A public hearing opened at 7:25 p.m.  Scott Walker, Executive Director of Midland Tomorrow, spoke in support of all three projects.  The hearing closed at 7:30 p.m. The following resolution was then offered by Councilman Wazbinski and seconded by Councilman Brown:

 

WHEREAS, The Dow Chemical Company Plant Rehabilitation District No. 1 was established by resolution of the Midland City Council on September 25, 1978; and   

WHEREAS, Dow AgroSciences, LLC made an application dated January 20, 2012, which was received by the City Clerk on January 24, 2012 for an Industrial Facilities Exemption Certificate relating to approval of a new facility within said District; and

WHEREAS, the application for the certificate is for approval of a new facility with the total project cost of $107,034,000 which is for new real and personal property with the same being located within The Dow Chemical Company Plant Rehabilitation District No. 1 to utilize buildings 948, 941 and 489 at Michigan Operations for the production of two 4-D agricultural herbicide products.  The project, named NexD will retrofit and install all necessary process instrumentation, piping, pumps and equipment for expanded production calls and to extend the life of the facilities. The project is expected to retain 26 jobs and create 2 jobs within two years of completion; and

WHEREAS, the City Council, by written notice, afforded the applicant, the City Assessor, and representatives of each affected taxing unit an opportunity for a hearing on February 13, 2012, as required by Public Act 198 of Public Acts of the State of Michigan of 1974, as amended, and has given due consideration to all information presented; and

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

WHEREAS, the aggregate SEV of real and personal property exempt from ad valorem taxes within the City of Midland, after granting this certificate, will exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property thus exempted; now therefore

RESOLVED, that the City Council of the City of Midland finds and determines that the granting of the industrial facilities exemption certificate requested by Dow AgroSciences, LLC considered together with the aggregate amount of industrial facilities exemption certificates previously granted and currently in force under PA 198 of 1974, as amended and PA 225 of 1978, as amended shall not have the effect of substantially impeding the operation of the City of Midland or impairing the financial soundness of any other taxing unit which levies an ad valorem property tax in the City of Midland; and

RESOLVED FURTHER, that said application for an Industrial Facilities Exemption certificate from Dow AgroSciences, LLC., for a new facility approval within The Dow Chemical Plant Rehabilitation District No. 1, be and the same is hereby approved for a period of 12 years after completion; and that the Mayor and City Clerk are authorized to execute the Public Act 198 Agreement submitted between the City and Dow AgroSciences, LLC,  pursuant to P.A. 334 of Public Acts of the State of Michigan of 1993.  (Motion ADOPTED.)

 

DOW AGROSCIENCES, LLC IFT APPLICATION (Project FLASH)

A public hearing opened at 7:32 p.m., recognizing no public comments, the hearing closed at 7:32 p.m.  The following resolution was then offered by Councilman Adams and seconded by Councilman Brown:

 

WHEREAS, The Dow Chemical Company Plant Rehabilitation District No. 1 was established by resolution of the Midland City Council on September 25, 1978; and   

WHEREAS, Dow AgroSciences, LLC made an application dated January 20, 2012, which was received by the City Clerk on January 24, 2012 for an Industrial Facilities Exemption Certificate relating to approval of a new facility within said District; and

WHEREAS, the application for the certificate is for approval of a new facility with the total project cost of $25,000,000 which is for new real and personal property with the same being located within The Dow Chemical Company Plant Rehabilitation District No. 1 to retrofit Building 1 at Michigan Operations for the production of a new agricultural herbicide molecule.  The project, named FLASH, will retrofit and install all necessary process instrumentation, piping, pumps and equipment for production as well as a warehouse expansion for additional storage capacity. The project is expected to retain 8 jobs; and

WHEREAS, the City Council, by written notice, afforded the applicant, the City Assessor, and representatives of each affected taxing unit an opportunity for a hearing on February 13, 2012, as required by Public Act 198 of Public Acts of the State of Michigan of 1974, as amended, and has given due consideration to all information presented; and

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

WHEREAS, the aggregate SEV of real and personal property exempt from ad valorem taxes within the City of Midland, after granting this certificate, will exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property thus exempted; now therefore

RESOLVED, that the City Council of the City of Midland finds and determines that the granting of the industrial facilities exemption certificate requested by Dow AgroSciences, LLC considered together with the aggregate amount of industrial facilities exemption certificates previously granted and currently in force under PA 198 of 1974, as amended and PA 225 of 1978, as amended shall not have the effect of substantially impeding the operation of the City of Midland or impairing the financial soundness of any other taxing unit which levies an ad valorem property tax in the City of Midland; and

RESOLVED FURTHER, that said application for an Industrial Facilities Exemption certificate from Dow AgroSciences, LLC., for a new facility approval within The Dow Chemical Plant Rehabilitation District No. 1, be and the same is hereby approved for a period of 12 years with an ending date of December 30, 2024; and that the Mayor and City Clerk are authorized to execute the Public Act 198 Agreement submitted between the City and Dow AgroSciences, LLC,  pursuant to P.A. 334 of Public Acts of the State of Michigan of 1993.  (Motion ADOPTED.)

 

ADVANCED ELECTROLYTE TECHNOLOGIES (USA) LLC IFT APPLICATION

A public hearing opened at 7:35 p.m., recognizing no public comments, the hearing closed at 7:35 p.m.  The following resolution was then offered by Councilman Brooks and seconded by Councilman Wazbinski:

 

WHEREAS, The Dow Chemical Company Plant Rehabilitation District No. 1 was established by resolution of the Midland City Council on September 25, 1978; and   

WHEREAS, Advanced Electrolyte Technologies (USA) LLC, made an application dated January 20, 2012, which was received by the City Clerk on January 24, 2012 for an Industrial Facilities Exemption Certificate relating to approval of a new facility within said District; and

WHEREAS, the application for the certificate is for approval of a new facility with the total project cost of $25,349,000 which is for new real and personal property with the same being located within The Dow Chemical Company Plant Rehabilitation District No. 1 to modify Building 1353 and construct Building 1353A at Michigan Operations for the production of formulated electrolytes.  The project, named Loons, will design, purchase and install all necessary process instrumentation, piping, pumps, and equipment for production of electrolytes. The project is expected to create 8 jobs within two years of completion; and

WHEREAS, the City Council, by written notice, afforded the applicant, the City Assessor, and representatives of each affected taxing unit an opportunity for a hearing on February 13, 2012, as required by Public Act 198 of Public Acts of the State of Michigan of 1974, as amended, and has given due consideration to all information presented; and

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

WHEREAS, the aggregate SEV of real and personal property exempt from ad valorem taxes within the City of Midland, after granting this certificate, will exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property thus exempted; now therefore

RESOLVED, that the City Council of the City of Midland finds and determines that the granting of the industrial facilities exemption certificate requested by Advanced Electroylyte Technologies (USA) LLC, considered together with the aggregate amount of industrial facilities exemption certificates previously granted and currently in force under PA 198 of 1974, as amended and PA 225 of 1978, as amended shall not have the effect of substantially impeding the operation of the City of Midland or impairing the financial soundness of any other taxing unit which levies an ad valorem property tax in the City of Midland; and

RESOLVED FURTHER, that said application for an Industrial Facilities Exemption certificate from Advanced Electrolyte Technologies (USA) LLC, for a new facility approval within The Dow Chemical Plant Rehabilitation District No. 1, be and the same is hereby approved for a period of 12 years with an ending date of December 30, 2024; and that the Mayor and City Clerk are authorized to execute the Public Act 198 Agreement submitted between the City and Advanced Electrolyte Technologies (USA) LLC,  pursuant to P.A. 334 of Public Acts of the State of Michigan of 1993.  (Motion ADOPTED.)

 

PUBLIC COMMENTS

No public comments were made.

 

WALDO AVENUE TOWNHOMES WATER MAINS - EASEMENT AGREEMENT

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

 

RESOLVED, that the attached Easement Agreement from Schauman Development, LLC, to the City of Midland, for public water mains on their private Waldo Avenue Townhomes site at the northeast corner of Waldo Avenue at Ashman Street in Section 12, T. 14 N., R. 2 E., is hereby accepted and that the Easement Agreement is ordered recorded.  (Motion ADOPTED.)

 

MIDLAND COUNTRY CLUB WATER MAINS - EASEMENT AGREEMENT

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

 

RESOLVED, that the attached Easement Agreement from the Midland Country Club, to the City of Midland, for public water mains on their private Midland Country Club site on St. Andrews Road in Section 9, T. 14 N., R. 2 E., is hereby accepted and that the Easement Agreement is ordered recorded.  (Motion ADOPTED.)

 

RESIDENCE INN LIQUOR LICENSE

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

 

RESOLVED, that the request to: TRANSFER OWNERSHIP OF ESCROWED 2011 CLASS C LICENSE ONLY LOCATED AT 1259 POSEYVILLE, MIDLAND, MI  48640, MIDLAND TOWNSHIP, MIDLAND COUNTY FROM FORJA’S INC. TO R.I. HOSPITALITY, L.L.C.; TRANSFER LOCATION AND GOVERNMENTAL UNIT (MCL 436.1531 (1) TO 850 JOE MANN, MIDLAND, MI  48642, MIDLAND COUNTY; REQUEST TO RECLASSIFY FROM A CLASS C LICENSE TO A B-HOTEL LICENSE WITH 67 RENTAL ROOMS, AND REQUEST A NEW ENTERTAINMENT PERMIT be considered for approval.

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

 

LIBRARY BOARD APPOINTMENT (MARKEY)

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

 

RESOLVED, that Steven Markey is hereby appointed as a citizen-at-large member of the Library Board for a term expiring June 30, 2014.  (Motion ADOPTED.)

 

AMENDMENTS TO DEED RESTRICTIONS – H HOTEL HOLDING, LLC

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

 

WHEREAS, on February 14, 2011 the City of Midland deeded certain obsolete property, with specific deed restrictions, to Grounds for a Better World, LLC for specific construction and use as a driveway/parking facility; and

WHEREAS, on August 25, 2011 the City of Midland entered into a Consent to Transfer Real Property, including all deed restrictions, from Grounds for a Better World, LLC to H Hotel Holding, LLC; and

WHEREAS, on September 9, 2011 Grounds for a Better World, LLC deeded said property to H Hotel Holding, LLC; and

WHEREAS, due to construction constraints the driveway/parking facility construction has not been completed within the originally required time frame and as neither party wishes for the property to revert back to the City of Midland, the parties have agreed to enter into an Amendment to Deed Restrictions allowing an additional year to complete the project; now therefore

RESOLVED, that the Mayor and City Clerk are hereby authorized to execute the attached Amendment to Deed Restrictions between the City of Midland and H Hotel Holding, LLC and further to record this document with the Midland County Register of Deeds.  (Motion ADOPTED.)

 

DIESEL FUEL PURCHASE

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

 

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, City Council reviewed the process on December 21, 2009 and decided to continue as it still provides a significant cost savings to the City; 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 12,600 gallons of Winter Blend diesel fuel from Hirschman Oil of Reese, Michigan for $37,976.40 executed by the Purchasing Agent on January 31, 2012, is hereby approved.  (Motion ADOPTED.)

 

UNLEADED FUEL PURCHASE

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

 

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, City Council reviewed the process on December 21, 2009 and decided to continue as it still provides a significant cost savings to the City; 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 13,401 gallons of E10 ethanol blend unleaded fuel from Hirschman Oil of Reese, Michigan for $37,509.40 executed by the Purchasing Agent on February 6, 2012, is hereby approved.  (Motion ADOPTED.)

 

TRENCHLESS SEWER REPAIRS

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

 

WHEREAS, through maintenance efforts and in conjunction with the City’s annual Engineering Priorities, Wastewater staff have identified and inventoried stretches of sanitary sewer pipe that are faulty and are prime candidates for lining, rather than excavate and replace; and

WHEREAS, on January 31, 2012, sealed bids for Trenchless Sewer Repairs, Bid No. 3399, were advertised and received in accord with section 2-18 of the Midland Code of Ordinances; and

WHEREAS, the pricing structure is such that the larger the diameter of the pipe, the higher the cost per lineal foot for the installation of the liner; and

WHEREAS, the low total bid for the specified sizes and lengths of pipe was submitted by Inland Waters of Brownstown, Michigan in the amount of $231,960.00; and

WHEREAS, the pricing is favorable, and is well within the funding budgeted for the purpose of sewer linings in the 2011/12 Wastewater Fund, account #590.9120.97.050 – Sewer System; now therefore

RESOLVED, that a purchase order to Inland Waters in the amount of $231,960.00 for the lining of sanitary sewers of varying diameters and lengths, is hereby authorized; and

RESOLVED FURTHER, that the City Manager is authorized to approve changes to the purchase order in an aggregate amount not to exceed $15,000.00.  (Motion ADOPTED.)

 

SIGN MATERIAL PURCHASE

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

 

WHEREAS, sealed proposals have been advertised and received in accord with Article II of Chapter 2 of the Midland Code of Ordinances for the purchase of sign materials (traffic signs); and

WHEREAS, sufficient funding for this purchase is provided by the Major Street and Local Street Funds; now therefore

RESOLVED, that the sealed proposal submitted by Vulcan Signs, for BID No. 3400 – Sign Materials (Traffic Signs), in the indicated amount of $37,274.45, is hereby accepted and the Purchasing Agent is authorized to issue a purchase order in accord with the proposal and the City's specifications.  (Motion ADOPTED.)

 

Being no further business the meeting adjourned at 7:40 p.m.

 

 

 

______________________________________

            Selina Tisdale, City Clerk