August 26, 2013

 

A regular meeting of the City Council was held on Monday, August 26, 2013, 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, Maureen Donker, Marty Wazbinski

Councilmen absent:

Diane Brown Wilhelm

 

MINUTES

Approval of the minutes of the August 12, 2013 regular meeting was offered by Councilman Wazbinski and seconded by Councilman Adams.  (Motion ADOPTED.)

 

PRESENTATION – MCTV ON AT&T’s U-VERSE

Manager of MCTV and Library Communications Ron Beacom presented information on Midland Community Television’s new presence on AT&T’s U-verse service.

 

2013-14 WATER ENTERPRISE FUND BUDGET AMENDMENT

Utilities Director Noel Bush presented an amendment to the Water Enterprise Fund budget for water main upgrades on East Ashman Street and Washington Street. The following resolution was offered by Councilman Brooks and seconded by Councilman Wazbinski:

 

WHEREAS, in accord with Sections 5.11 and 11.6 of the Charter of the City of Midland, and after having given proper legal notice, a public hearing was conducted on Monday, August 26, 2013, on the proposal to amend the 2013/14 Water Enterprise Fund budget; now therefore

RESOLVED, that the 2013/14 Water Enterprise Fund budget is hereby amended to increase revenues by $625,000.00 from working capital, and to increase appropriations for Water Main upgrades on East Ashman Street ($410,000.00) and Washington Street ($215,000.00).  (Motion ADOPTED.)

 

PUBLIC COMMENTS

Gary Glenn, 3800 E. Monroe Road, spoke regarding his positive experience with MCTV.

 

MIDLAND COUNTY TOBACCO REDUCTION COALITION – SMOKE FREE PETITIONS

City Manager Jon Lynch presented petitions submitted by the Midland County Tobacco Reduction Coalition seeking designation of all public playgrounds and beaches smoke free.  Susan Dusseau, 4306 Swede Avenue, spoke in favor of the request.  Amy Hovey of Coleman and with the Great Start Parent Coalition also spoke in favor of the request.  The following resolution was then offered by Councilman Wazbinski and seconded by Councilman Adams:

 

WHEREAS, in January of 2013 the Midland County Tobacco Reduction Coalition presented to members of the Midland Parks and Recreation Commission 110 petition signatures seeking designation of all public playgrounds & beaches smoke free; and

WHEREAS, in March the Parks and Recreation Commission noted that the matter had been addressed by a vote electing not to change current parks rules and policies pertaining to smoking in December of 2012; and

WHEREAS, the City Council under Section 17-9 of the Code of Ordinances holds responsibility for enacting rules regulating activity in municipal parks; now therefore

RESOLVED, that petitions presented by the Midland County Tobacco Reduction Coalition to members of the Midland Parks and Recreation Commission seeking designation of all public playgrounds & beaches smoke free are hereby received.  (Motion ADOPTED.)

 

SITE PLAN NO. 320

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

 

WHEREAS, the City Council has received the recommendation of the City Planning Commission for approval of Site Plan No. 320, the request of Midland Country Club for site plan review and approval for a 16,770 square foot maintenance building, located at 1120 West St. Andrews Road; and

WHEREAS, the City Council has reviewed the proposed Site Plan No. 320 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. 320, contingent upon the following:

1.   Detailed engineering drawings to the satisfaction of the City Utility Department shall be provided to ensure that water used in the washing of maintenance equipment is not released into the city utility system.

2.   MDOT permits shall be obtained for all work within the right-of-way of Eastman Avenue.

3.   A final soil and sedimentation control plan shall be submitted to the City Building Department.

4.   Lighting fixture detail meeting the requirements of the City Zoning Ordinance must be submitted to the City Building Department.

5.   The fuel storage area shall be designed to meet the requirements of the City Fire Department.

(Motion ADOPTED.)

 

CABLE ACCESS ADVISORY COMMISSION – NELSON PRICE APPOINTMENT

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

 

RESOLVED, that Cathy Nelson Price is hereby appointed as an MCTV Access User of the Cable Access Advisory Commission for a term expiring June 30, 2015.  (Motion ADOPTED.)

 

2013 WASHINGTON WATER MAIN REPLACEMENT

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

 

WHEREAS, sealed proposals have been advertised and received in accord with Article II of Chapter 2 of the Midland Code of Ordinances for the installation of a new water main on Washington Street from Patrick Road to Haley Street; and

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

RESOLVED, that the low sealed proposal submitted by Sova Excavating & Trucking, Inc. of Midland, Michigan, for the "2013 Washington Water Main Replacement; Contract No. 5", in the indicated amount of $124,603.80, 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.)

 

TRENCHLESS TECHNOLOGY REHAB SERVICES – EAST ASHMAN STREET

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

 

WHEREAS, the City is preparing to purchase supplies and award a contract to replace 2,205 lineal feet of 6-inch ductile iron water main at East Ashman Street, from Cambridge Street to Washington Street; and

WHEREAS, due to underground space restrictions the City is proposing to employ a contractor to burst the active water main pipe and pull through it a new 8-inch pipe to improve the flow characteristics and capacity of the water system; and

WHEREAS, the City has identified a contractor that competitively bid their Trenchless Technology Rehabilitation services through TCPN (The Cooperative Purchase Network), where all contracts are competitively bid, evaluated, approved and awarded, and meets the City of Midland Purchase Ordinance requirements; and

WHEREAS, a proposal was received from Utility Services Authority, LLC of Belleville, Michigan in the amount of $159,807.00, to provide pipe bursting of 2,205 lineal feet of an existing 6-inch cast iron pipe and to pull in an 8-inch Fusible PVC pipe, as well as installing the necessary valves and hydrants; and

WHEREAS, the City will purchase the needed supplies and materials, perform the excavation requirements at intersection crossings, as well as re-connecting the water services, and final restoration for project; and

WHEREAS, funding for this project is contingent on Council approval of a proposed budget amendment to the 2013/14 Water Enterprise Fund budget; now therefore

RESOLVED, that a purchase order to Utility Services Authority, LLC of Belleville, Michigan in the amount of $159,807.00, is hereby authorized to provide Trenchless Technology Rehabilitation services to replace the water main at East Ashman Street, from Cambridge Street to Washington Street; and

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

 

PIPE FOR WATER MAIN REPLACEMENT AT EAST ASHMAN STREET

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

 

WHEREAS, in conjunction with the agenda item to amend the 2013/14 Water Enterprise Fund budget, the City is preparing to purchase 2,205 lineal feet of 8-inch pipe to upsize and replace the existing 6-inch ductile iron water main at East Ashman Street, from Cambridge Street to Washington Street; and

WHEREAS, due to the underground space restrictions in that area, the City is proposing to employ a contractor to burst the active water main pipe, and pull through the displaced pipe an 8-inch pipe to improve the flow characteristics and capacity of the water system; and  

WHEREAS, the most suitable pipe for this application and in that area of the city is Fusible C-900® PVC, which is a patented pipe that comes in 45 foot lengths to be fused together to make one long stretch of pipe without joints; and

WHEREAS, the pipe meets all safe drinking water industry standards and is a sole source product provided by Underground Solutions, Inc. (UGSI) of Poway, California; and

WHEREAS, the bursting and installation of the new pipe is being proposed by an outside contractor, and is being considered in a separate Council item; and

WHEREAS, funding is contingent on Council approval of a proposed amendment to the 2013/14 Water Enterprise Fund budget; now therefore

RESOLVED, that in accord with Code Section 2-18, the requirement for sealed competitive proposals is hereby waived as impractical, and a purchase order is authorized to Underground Solutions, Inc. of Poway, California in the amount of $30,319.00 for supply of 2,205 linear feet of Fusible C-900® PVC pipe; and

RESOLVED FURTHER, that the City Manager is authorized to approve changes to said purchase order in an aggregate amount not to exceed $5,000.00.  (Motion ADOPTED.)

 

2013 ASHMAN AND WASHINGTON SIDEWALK RAMPS

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

 

WHEREAS, sealed proposals have been advertised and received in accord with Article II of Chapter 2 of the Midland Code of Ordinances for the installation of ADA sidewalk ramps at all the intersections on Ashman Street from Cambridge to Swede and on Washington Street from Patrick to Ashman; and

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

RESOLVED, that the low sealed proposal submitted by Geiersbach Construction, Inc. of Freeland, Michigan, for the "2013 Ashman & Washington Sidewalk Ramps; Contract No. 7", in the indicated amount of $158,795.00, 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.)

 

HOT-IN-PLACE RECYCLING PROJECT – CHANGE ORDER NO. 1

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

 

WHEREAS, the City Engineer has prepared a report indicating the need to add additional work involving manhole casting replacements and adjustments within the 2013 Hot-In- Place Recycling project, Contract No. 11; and

WHEREAS, funding is available in the Local Street Fund; now therefore

RESOLVED, that Change Order No. 1 to the 2013 Hot-In-Place Recycling project, Contract No. 11 in the indicated amount of $60,510.00 is hereby accepted and the City Manager is authorized to sign the change order; and

RESOLVED FURTHER, that the purchase order related to the contract be amended for said change order and necessary funding be transferred to the project.  (Motion ADOPTED.)

 

WATER SUPPLY SYSTEM REVENUE BONDS SERIES 2013 CONTRACT SUPPLEMENT

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

 

WHEREAS, the City of Midland, Counties of Bay and Midland and the City of Saginaw, County of Saginaw, each municipal corporations of the State of Michigan (together, the “Local Units”), and the Saginaw-Midland Municipal Water Supply Corporation, a public corporation formed pursuant to Act 233, of the Public Acts of 1955, as amended (“Act 233”), have entered into a contract, dated April 5, 1965 (the “Base Contract”); and

WHEREAS, said Base Contract provides that the cost of enlargements and improvements to the water supply system operated by the Saginaw-Midland Municipal Water Supply Corporation (the “Corporation”), for the benefit of the Local Units be allocated to the Local Units on the basis of 20/43 to the City of Midland and 23/43 to the City of Saginaw and;

WHEREAS, said Base Contract further provides that the Local Units will cooperate in the acquisition and financing of such additional enlargements and improvements in accordance with the Base Contract and Act 233; and

WHEREAS, the Corporation has agreed to supply raw water to the County of Bay (the
“County”), for the new Bay Area Water Treatment Plant (the “Plant”), and has entered into a forty (40) year contract with the County to do so; and

WHEREAS, it is now deemed necessary to acquire, construct and finance improvements (the “Improvements”), to the water supply system operated by the Corporation for the benefit of the Local Units in order to supply water to the Plant; and

WHEREAS, a contract supplement entitled “2013 Revenue Contract Supplement” has been prepared and presented to this City Council for its review and consideration; and

WHEREAS, the Corporation and its constituent members are required by Act 34 of the Public Acts of Michigan of 2001, as amended, to be qualified to issue municipal securities or to file an application to issue long term securities with the Municipal Finance Division of the Michigan Department of Treasury (“Treasury”), and to further agree to certain undertakings required by federal securities laws, so as to facilitate the issuance and sale of the bonds by the Corporation (the “Bonds”), to an underwriter or placement agent in order to finance the Improvements.

NOW, THEREFORE, BE IT RESOLVED THAT:

1.            The 2013 Revenue Contract Supplement, dated as of July 1, 2013, between the Corporation and the Local Units, attached hereto and made a part hereof, with respect to the acquisition, construction and financing of the Improvements to the water supply system operated by the Corporation on behalf of the Local Units, is hereby approved, ratified and confirmed and the Mayor and the City Clerk are hereby authorized and directed to execute, seal and deliver the same for and on behalf of the City.

2.            The City Council also hereby approves the plans for such improvements and the estimates of not more than $4,200,000 as the cost thereof and forty (40) years as the period of usefulness thereof.

3.            The City Council ratifies and affirms the City’s pledge of its limited tax full faith and credit as secondary security for the payment of its allocable share of the principal and interest of the Bonds to be issued by the Corporation to finance the Improvements and covenants to pay same from its general funds as a first budget obligation or to levy taxes within its charter tax rate limitation beginning with calendar year 2014 should other revenues, including water payments by the County, and funds for this purpose be insufficient.

4.            The notice of intent giving rise to a right of referendum as adopted and published by the Corporation be and is hereby acknowledged by the City and the City Clerk be and is hereby directed to receive any such petition for referendum which are proper as to form and are timely filed.

5.            The Mayor and the City Clerk are hereby authorized and directed to execute the 2013 Revenue Contract Supplement for and on behalf of the City.  The 2013 Revenue Contract Supplement may be executed in such number of counterparts as may be desirable and a copy of such contract supplement as presented to the City Council as herein approved shall be placed on file with the City Clerk and made available for examination by any interested person during normal business hours during the pendency of any referendum period as may be in effect regarding the issuance of the Corporation’s bonds relating to the project referenced in said contract supplement.

            6.         In order to enable the underwriter of the Bonds to comply with the requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission (“Rule 15c2‑12”), the City hereby agrees to undertake continuing disclosure as an “obligated person” pursuant to Rule 15c2-12, to the extent required by Rule 15c2-12.  Pursuant to the terms of a Continuing Disclosure Undertaking to be prepared and executed by the City, to the extent required by Rule 15c2-12, the City will provide, or cause to be provided, (i) certain annual financial information and operating data, including audited financial statements for the preceding fiscal year, (ii) timely notice of the occurrence of certain material events with respect to the Bonds, and (iii) timely notice of a failure by the City to provide the required annual financial information on or before the date required in the Continuing Disclosure Undertaking.  The Assistant City Manager for Financial Services is authorized to approve the disclosure of the City’s information in the Preliminary Official Statement and final Official Statement of the Corporation of the Bonds, and is directed to execute such Continuing Disclosure Undertaking on behalf of the City in such form as he shall, in consultation with bond counsel, determine to be appropriate.

            7.         The City shall, to the extent permitted by law, take all actions within its control necessary to maintain the exclusion of the interest on the Bonds from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Code”), including, but not limited to, actions relating to any required rebate of arbitrage earnings and the expenditure and investment of proceeds of the Bonds and moneys deemed to be the proceeds of the Bonds, and to prevent the Bonds from being or becoming "private activity bonds" as that term is used in Section 141 of the Code.  The Assistant City Manager for Financial Services, upon the advice of bond counsel for the Corporation, is hereby authorized to designate all or any portion of the Bonds as “qualified tax-exempt obligations” for purposes of deduction of interest expense pursuant to the Code on the City's behalf, and to execute any form of certificate or order satisfactory to the Corporation's bond counsel to evidence such designation, to the extent that such designation is lawfully available under the Code.

            8.         The Assistant City Manager for Financial Services is hereby authorized to execute on behalf of the City any closing document or certificate as may be required by the Corporation or the purchaser of the Bonds and to do such other things and sign such other documents required by the City for the issuance of the Bonds.

            9.         Miller, Canfield, Paddock and Stone, P.L.C. is being retained by the Corporation to act as bond counsel for the Bonds.  The City consents to the representation of the Corporation by Miller, Canfield, Paddock and Stone, P.L.C. as bond counsel, notwithstanding its representation of the City or prospective purchasers of the Bonds in unrelated matters. 

10.       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.)

 

JANITORIAL SERVICE AGREEMENT – WATER PLANT

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

 

WHEREAS, the Water Treatment Plant (WTP) has over 100,000 square feet of floor space that is cleaned and maintained, including open and treatment areas of the plant, office spaces, the laboratory, shop area, locker rooms, and restrooms; and

WHEREAS, for the past 19 years WTP staff has been pleased with the reliability, commitment, and cost-effective service that the Arnold Center of Midland special needs employees have provided, and would like to continue that business relationship; and

WHEREAS, the new rate requested remains unchanged from last year at $2,522.47 per month, for a total annual cost of $30,269.64; and

WHEREAS, funds are available for said purpose in the 2013/14 Water Fund account #591.8272.93.004 – Janitorial Service; now therefore

RESOLVED, that the Mayor and City Clerk are hereby authorized to execute the service agreement with the Arnold Center of Midland for janitorial services at the City of Midland Water Treatment Plant, with a total annual amount not to exceed $30,269.64, subject to document approval by the City Attorney.  (Motion ADOPTED.)

 

DIESEL FUEL PURCHASE

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

 

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 13,403 gallons of diesel fuel from Hirschman Oil of Reese, Michigan for $40,048.16 executed by the Purchasing Agent on August 12, 2013, is hereby approved.  (Motion ADOPTED.)

 

NEW WORLD SYSTEMS – SOFTWARE MAINTENANCE & SUPPORT SERVICES

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

 

WHEREAS, New World Systems annual software maintenance and support services are due for renewal; and

WHEREAS, software maintenance and support is directly provided by the manufacturer and is considered sole source; and

WHEREAS, sufficient funding exists in the Information Services Operations Fund, and its 2013-14 budget includes sufficient appropriations to pay the 2013-14 expenditures; now therefore

RESOLVED, that the City Council hereby determines that sealed bids are impractical, and in accordance with Section 2-18 of the Code of Ordinances, the requirement for sealed proposals is hereby waived and the payment to New World Systems in the amount of $60,000.00 for maintenance and support services is hereby approved.  (Motion ADOPTED.)

 

Being no further business the meeting adjourned at 8:00 p.m.

 

 

______________________________________

            Selina Tisdale, City Clerk