; REGULAR MEETING OF THE COUNCIL OF THE CITY OF SAGINAW_ MICHIGAN
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REGULAR MEETING OF THE COUNCIL OF THE CITY OF SAGINAW_ MICHIGAN

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									                                 JULY 11, 2005                                      337

REGULAR MEETING OF THE COUNCIL OF THE CITY OF SAGINAW, MICHIGAN,
HELD MONDAY, JULY 11, 2005, AT 6:30 P.M. IN THE COUNCIL CHAMBER OF CITY
HALL.

                            COMMITTEE OF THE WHOLE
          Attending the Committee of the Whole meeting held at 4:30 p.m. were
Councilpersons Charles Coleman, Carol Cottrell, Andrew J. Coulouris, Amos O’Neal,
Roma Thurin, and Mayor Wilmer Jones Ham, Chair. Jerry Desloover and Lisa Renas
from Rehmann Robson presented and discussed the 2003-2004 Audit Report and their
report on the City’s internal controls. They provided Council with a list of reportable
conditions and material weaknesses; John Stemple, Planning and Zoning Coordinator,
and City Attorney Tom Fancher discussed the new General Business License Ordinance
and shared some comments and reaction from the business community; John Stemple
also discussed a single-family home development project by MV Communities, LTD. in
the southeast side of the City, and the PILOT ordinance to be introduced that evening
relative to the project.

                    PRAYER AND PLEDGE OF ALLEGIANCE
         Mayor Wilmer Jones Ham offered a prayer and led the pledge of allegiance.

                                  ROLL CALL
        Mayor Wilmer Jones Ham called the meeting to order.         The following
Councilpersons were present: Charles Coleman, Carol Cottrell, Andrew J. Coulouris,
Amos O’Neal, Roma Thurin and Mayor Wilmer Jones Ham-6.
        Absent: Councilpersons Willie Haynes and Daniel Soza-2.

   CORRECTION AND APPROVAL OF MINUTES OF PRECEDING SESSIONS:
        Councilman Coleman moved to approve the minutes of the May 16, 2005 and
May 23, 2005 regular council meetings.
        Adopted unanimously.

                             PERSONAL APPEARANCES
          Anne DeBoer, Dow Corning Foundation, spoke on the need for Summer
recreation programs. Said kids needs something constructive to do. On behalf of the
Dow Corning Foundation, she presented a check in the amount of $3,000 for the
Recreation Committee.
          Jack Schmidt, (no address given), spoke against the City Manager. Criticized
him for wanting to hire more cops, lowering the income tax deduction, implementing a
General Business License and draining the rainy day fund. Said this will drive more
citizens and businesses out of the City.
          Earl Jesse, 310 S. Harrison, provided Council with a notice and packet of
information with regard to Councilman Coulouris serving as Councilman while being
employed as an Assistant Prosecutor. Said it is a violation of the law and he is willing to
take the matter to the Supreme Court.
          (At 6:45 p.m., Councilman Soza arrives and takes his seat.)
338                            JULY 11, 2005

         Barbara Wiese, 1020 Reed, commended Mayor Protem Cottrell for the
wonderful fireworks. Questioned why 19 houses were being torn down on the Eastside
and only 1 tore down on the Westside. Mentioned a house at 2217 N. Oakley which was
supposed to have been boarded up. Criticized Mr. Powell only being in the office on
Mondays and said Mosquito Control is not doing enough spraying.
         Jackie Dunson, of Faith Life Church International, 179 West Court, Bay City,
spoke on a survey her group had taken in the Eastside community, which included
youths, adults, senior citizens, and local business owners on the needs of the community.
The survey responses stressed the need for help in providing services and curbing the
violence. Said the Church was presenting a proposal for the donation of the Civitan
Recreation facility. Requested Council’s support.
         Tom Inman, 1203 Brockway, suggested the City sell the blighted houses for $1,
with the understanding the buyer would have to tear down the house and build on the
property. Also suggested the City use Round-up or some other kind of weed killer on the
vacant lots so they would not have to come back again to mow.

                               REMARKS OF COUNCIL
          Councilman Coleman spoke on the Council vacancy. Said people had
approached him in the past week about reopening the Council vacancy selection process.
Said he was not unhappy with any of the applicants from the first round, however, since
Council was at a deadlock he felt it necessary to repeat the process so Council could
move forward. Requested Faith Life International work with the Recreation Committee to
make sure they are all on the same page.
          Councilman Soza questioned Mr. Powell only working on Mondays. City
Manager Cecil Collins said Mr. Powell is only working as the Interim Treasurer. His
salary was reduced to keep him on to assist in implementing the new equipment for the
Treasurer’s Office. Councilman Soza then questioned the number of house being
demolished on the Eastside versus the Westside. City Manager Cecil Collins said a
release from the owner is necessary and sometimes hard to get and often they are on the
list due to the fact they are an endangerment. Said things should change with the
creation of the Land Bank Authority. Councilman Soza inquired about eminent domain.
City Attorney Tom Fancher said Michigan has less power in this regard than other states.
          Councilwoman Thurin requested a written report on the Land Bank Authority to
inform Council and the citizens of the specifics, the progress and the proposals.
Mentioned a prior map Council received from GIS on the needs of the entire community.
Commended the group that disseminated the survey. Questioned what Council could do
to address the issues and needs equally to the community. Requested an update to the
prior GIS report.
          Mayor Ham commented on the blight in the City. Said her heart goes out to
homeowners who fix their properties and have to see blighted homes next door or across
the street. Said she has formed several Task Forces to address the City’s issues. Said
she wants to see people put their money on the table to move the City forward. The
Mayor requested that Duane Walker, Executive Director of the Housing Commission,
speak on Town Garden Apartments. Said she had received dozens of complaints. The
Mayor detailed the violence and Mr. Walker said the ability to lease the units have been
                                 JULY 11, 2005                                      339

compromised by the activities. The Mayor requested Council receive a report on the
matter. Police Chief Cliff said he had a meeting scheduled the following day with the
parties. The Mayor encouraged the residents to call 911 and to take charge of their
community. The Mayor then requested Council allow Calvin O’Neal to speak. He said he
was from Faith Life Church and has committed himself to rebuild the City. Believes the
City can be restored. Said the Eastside and Westside of the City need to be united, need
to work together. Requested Council’s support in Faith Life’s endeavor to reopen the
Civitan Center. Said it is just a start. He and the Church are committed to getting things
done. The Mayor commended Pastor Roy Manning for building a gymnasium at his
church for youth in the community. The Mayor commended Mayor Protem Cottrell and
her committee for the outstanding fireworks display.

                                     PETITIONS
                                           st
05-16    From Melvin A. Barkley, 546 S. 21 Street, requesting permission to erect a
         banner in the 200 block of West Genesee and the 1000 block of East Genesee
         from July 15, 2005–August 15, 2005 for the purpose of advertising the African
         Cultural Festival.
         Adopted unanimously.
                                                  th
05-17    From Pastor Roy Manning, 104 S. 10 Street, requesting that the property
                                                           th
         abutting the alley bounded by Lapeer Street, S. 11 Street, Federal Avenue and
           th
         10 Street be vacated. Mayor Ham referred the request to the City Planning
         Commission.

        REPORTS FROM BOARDS AND COMMISSIONS AND COMMITTEES
         Councilman Coulouris announced a Water Subcommittee Meeting for July 12,
2005 at 6:00 p.m. in Council Chambers.
         Councilman Coleman reported on the Recreation Committee. Said due to lack
of funding, some of the summer activities planned would have to wait until next year. Told
of an organization entitled “Heroes for Kids” made up of prior athletes from the City. Said
this group and Larry Preston’s group were sponsoring a golf outing to raise funds for
recreation. Thanked all those involved.
         Councilwoman Cottrell reported on the Evaluation Committee. Said for
scheduling reasons, the Committee has been unable to meet with the City Manager. Said
she would report back once they have had a chance to meet.
         Mayor Ham appointed Councilwoman Thurin as Chair of the City/County/School
Liaison Committee, which meets the third Thursday of each month at 5:00 p.m. in rotating
locations.
         Mayor Ham announced the appointment of Charles Conner to the Housing
Commission Board.

                        REPORTS FROM CITY MANAGER
Management Update
        The City Manager passed out a FY2005-2006 Employee Complement Fund Split
Report as of June 30, 2005. He also provided Council with the Request for Proposal
340                            JULY 11, 2005

given to bidders with regard to a residential development project at Douglass Street and
Wickes Park. Requested Council’s support in moving the project forward. Tom Darnell,
Director of Public Services gave an update on the booking of a Gospel Fest and wedding
on Ojibway Island the same day. Mr. Darnell reported he met with the parties who had
come to an agreeable schedule so that both functions could take place.

Recommended Actions
Subject: Two-year Agreement for Employee Assistance Program
          Manager’s Recommendation: I recommend approval of a two-year agreement
between the City of Saginaw and Child and Family Services to provide an Employee
Assistance Program to City employees. The contract cost per year is $14,772.00
annually. This is a 4.2% reduction from our prior contract amount of $15,412.00
attributable to the City’s reduction in total number of employees.
          The City Manager has approved this contract as to substance and the City
Attorney as to form. Either party with a 30-day notice may terminate this two-year
contract. This professional organization meets all the requirements of the contract
provisions, Title 1, Chapter 19, §14.35-14.44. Of the Saginaw Code of Ordinances.
          Funds are available in the Employee Health Services Professional Services
Account No. 678-1751-701-80.01.
              Justification: Child and Family Services have provided assistance to City
employees since 1995. They have provided excellent services to the City in assisting
employees and their family members with personal problems such as job performance
issues, emotional problems, substance abuse, financial issues and marital counseling.
They have a Substance Abuse Professional that handles all Department of Transportation
substance abuse referrals of City of Saginaw employees with Commercial Drivers’
License holders. The agency provides seminars for supervisors and their employees.
          Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
          Adopted unanimously.

Subject: Renewal of Personal Services Contract with Nancy Koepke
           Manager’s Recommendation: This Council Communication transmits two items
for approval by the City Council.
           (1) Transmitted herewith is renewal of a contract with Nancy Koepke to fill the
position of Director of the Saginaw Arts & Enrichment Commission (SAEC) from July 1,
2005 through June 30, 2006 (City Clerk’s file no. A-7433b). The SAEC’s finance
committee unanimously approved an hourly salary of $21.50, based upon her outstanding
performance as Director. The contract price shall not exceed Twenty Three Thousand Six
Hundred Dollars ($23,600).
           I recommend the contract be approved and accepted and that the proper
officials be authorized to execute the same on behalf of the City. Funds for this contract
will be paid entirely by the Saginaw Arts & Enrichment Commission, Account No. 236
7532 801.
           (2) I recommend the Personal Services Agreement with Nancy Koepke as
Director of the Andersen Enrichment Center be approved and accepted and that the
                                   JULY 11, 2005                                       341

proper City officials be authorized to execute the same on behalf of the City.
          Both contracts have been approved by me as to substance and by the City
Attorney as to form.
          Justification: The SAEC employs a Director for the purpose of administrating the
work of the Commission. In addition to public relations duties, the Director is also
responsible for organizing and implementing all projects, writing grants, and fundraising.
          This position is part-time and an independent contractor has traditionally
performed the work. Funding is entirely provided by revenues generated by the SAEC.
          For the past seven years, Nancy Koepke has been the Director of the Andersen
Enrichment Center (AEC), with duties that include supervision of the building manager,
hiring and firing of personnel, approval of all expenditures and purchases, marketing, etc.
 In addition to the compensation received from the SAEC, Nancy Koepke will be paid
$3,600 annually from the City’s AEC budget, Account No. 236 7540 811.
          Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
          Adopted unanimously.

Subject: Johnson Controls, Inc. Renewal Agreement
          Manager’s Recommendation: I recommend approval of the proposal received
from Johnson Controls, Inc. for a three-year renewal service agreement for air
conditioning, heating and facility management systems at the Law Enforcement Center in
the appropriate amount designated for each fiscal year and that it not exceed those
amounts.
          The contract has been approved by the City Manager as to substance and by
the City Attorney as to form.
          This vendor meets all requirements of the Contract Compliance Provisions, Title
1, Chapter 14, §14.35-14.44, of the Saginaw Code of Ordinances.
Funds are available in the General Fund Police Department Building Maintenance
Account No. 101-3014-721-8005.
          Justification: The Police Department has received a proposal from Johnson
Controls, Inc., to renew the three-year service agreement for the air conditioning, heating
and facility management systems at the Law Enforcement Center. Johnson Controls,
Inc., has been the provider of this service for over 18 years and is the original installers of
the system.

         The cost for the three years is as follows:
         FY 2006            $29,077.00 (Same price as FY 2005)
         FY 2007            $29,077.00 (Same price as FY 2005)
         FY 2008            $29,659.00

Johnson Controls, Inc. has also included in this proposal the annual fire inspection to the
fire system at the Law Enforcement Center. The annual fire inspection service was
previously contracted with Honeywell Building Solutions at a cost of $2,200.00 annually.
Services with Honeywell Building Solutions would discontinue upon expiration of the FY
2005 contract.
342                               JULY 11, 2005

        Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
        Adopted unanimously.

Subject: Blanket Purchase Order With Carrier & Gable
          Manager’s Recommendation: I recommend a blanket purchase order be
approved and issued to Carrier & Gable, Inc., Farmington Hills, Michigan, in the amount
of $5,000 to cover repair costs of traffic signal equipment from July 1, 2005 through June
30, 2006.
          Funds for these services are available in the General Fund Traffic Engineering
Account No. 101-4621-791-7330 ($2,000.00) and in the Major Streets Traffic Engineering
Account No. 202-4621-791-7330 ($3,000.00).
          Justification: On February 6, 1996, City Council approved a procedure for
repairing traffic signal controller equipment. City staff does routine repair and
maintenance of these solid-state devices. Sometimes complex repairs must be done by
the manufacturer’s authorized service representative. Carrier & Gable, Inc. is Michigan’s
authorized service representative and offers standard pricing for each type of repair.
After sufficient experience with repairing these devices, city staff estimated $5,000.00 as
the annual cost for such services. Since this service is necessary to properly maintain
the city’s traffic signal system and because Carrier & Gable, Inc. is the only authorized
repairer in the region, it is clearly in the city’s best interest to continue this procedure from
July 1, 2005 through June 30, 2006.
          Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
          Adopted unanimously.

Subject: Financial Advisory Services for the Wastewater Headworks Project
         Manager’s Recommendation: I recommend that the financial advisory services
proposal from Bendzinski & Co. be accepted and that a purchase order be approved and
issued for an amount not to exceed $12,500.00.
The proposal is subject to approval by the City Manager as to substance and by the City
Attorney as to form.
         Funds for these services are available in the Sewer Administration Account No.
590-4810-851-8001.
         Justification: The City received a proposal dated June 23, 2005 from Bendzinski
& Co., Detroit, MI, to provide financial advisory services associated with securing a State
Revolving Fund Loan for the Wastewater Treatment Plant Headworks project, SRF
Project No. 5230-01. The Headworks project is the first phase of three preliminary and
primary treatment system improvements totaling $8,775,000. Bendzinski & Co. will
provide financial services as needed to assist and advise the City in the successful
delivery of funds from the Michigan Municipal Bond Authority. Financial services shall
include preparation of financial information, assisting the City Attorney and Bond Counsel
with the sale of bonds, preparation of and/or assistance with applications required by
Michigan Finance Division of the Michigan Department of Treasury and Michigan
Department of Environmental, Environmental Assistance Division.
                                 JULY 11, 2005                                      343

        Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
        Adopted unanimously.

Subject: Sewer Cleaning and Videotaping
         Manager’s Recommendation: I recommend that the low bid from Utility Services
Authority be accepted and a purchase order be approved and issued to them in the
amount of $145,282.00 for sewer cleaning and videotaping.
 This vendor meets all requirements of the Contract Compliance Provisions, Title 1,
Chapter 14, §14.35-14.44, of the Saginaw Code of Ordinances and has provided bonds
for the amount of the purchase order.
         Funds for this purchase are available in the Sewer Operations and Maintenance
Account No. 590-4821-861-97-41.
         Justification: On May 24, 2005, the City received bids for Sewer Cleaning and
Videotaping. This annual maintenance is used to create a visual record of known or
suspected problems, investigate sewers in advance of paving for replacement and to
remove the grit from the combined sewer system for greater capacity as required by the
City’s NDPES permit. Fifty thousand three hundred and three feet (50,303) of sewer will
be videotaped and six thousand eight hundred fifty three feet (6,853) will be cleaned by
the contractor. A cost comparison is not an accurate comparison from the last time this
was preformed as the methods and technology has changed considerably in the last
seven years. The following is a tabulation of the bids received and reviewed by the
Purchasing Committee:

         Utility Services Authority            $ 145,282.00
         Belleville, MI
         Advanced Underground Insp.            $ 196,303.00
         Detroit, MI

         National Industrial Maint.            $ 298,695.15*
         Jackson, MS

         *Should be $298,696.00 due to rounding error

        Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
        Adopted unanimously.

Subject: Spicer Group and Wade-Trim Engineering Professional Services Agreement
Amendments
         Manager’s Recommendation: I recommend approval of the agreement
amendments between the City of Saginaw and Spicer Group and between the City of
Saginaw and Wade-Trim for general engineering services. The total amount of both
agreement amendments will not exceed Five Hundred Thousand Dollars and 00/100
($500,000.00). In addition, it is requested that the City Engineer be authorized to approve
344                             JULY 11, 2005

and issue individual purchase orders of varying amounts up to the authorized amount of
$500,000.00 from July 1, 2005 through June 30, 2006. The City Engineer will distribute
work between the two firms on a rotational basis for small projects and distribute work on
a competitive basis for larger projects. The City Manager has approved the agreement
amendments as to substance and the City Attorney as to form.
          Each vendor meets all requirements of the Contract Compliance Provisions,
Title 1, Chapter 14, §14.35-14.44, of the Saginaw Code of Ordinances.
Funds for these services are available in various Capital Improvement and Operations
Accounts.
          Justification: Council approved the original agreements with Spicer Group and
Wade-Trim on June 30, 2003. These services are necessary to support City engineering
staff to carry out the duties and responsibilities of the Engineering Division whenever
workload demands the addition of the consultant’s staff and expertise.
          Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
          Adopted unanimously.

Subject: Agreement to Pay Taxes from Proceeds of Closing
           Manager’s Recommendation: I recommend approval of the multiple party
Agreement among Luscious Latin Cuisine, Inc., Diversity Enterprises, Inc., Triangle Pride,
Incorporated and the City of Saginaw to guarantee payment of taxes and other debts to
the City at the closing of the sale of the property. This Agreement has been approved by
the City Manager as to substance and the City Attorney as to form.
           Justification: Luscious Latin Cuisine, Inc. (“LLC”) operates El Farolito’s
Restaurant and the Mirage Bar at 115 North Hamilton Street. It agreed to sell the real
and personal property, business and liquor license to Diversity Enterprises, LLC and
Triangle Pride Incorporated (collectively: “Diversity”). LLC had tax and other debts to the
City, which it wanted to resolve at the time the business was transferred and it could pay
the obligations from the proceeds at the closing. Diversity and the City were agreeable
to this arrangement. The parties have entered into an agreement to have this debt paid
at the closing and so that the approval of the transfer of the liquor license need not be
delayed.
           Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
           Adopted unanimously.

Subject: Fire Department SAFE Grant Application
         Manager’s Recommendation: I recommend the SAFER grant application
submitted by the Fire Department be received and filed.
         Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
         Adopted unanimously.
                                  JULY 11, 2005                                       345

Subject: Audit Financial Report for Fiscal Year Ended June 20, 2004.
         Manager’s Recommendation: I recommend the Audit Financial Report for Fiscal
Year Ended June 20, 2004 be received and file.
         Council Action: Councilman Coleman moved that the recommendation from the
City Manager be approved.
         Adopted unanimously.

Subject: Fund Split Report for FY2005-2006 Complement
         Manager’s Recommendation: I recommend the Fund Split Report for FY2005-
2006 Complement as of June 30, 2005 be received and filed.
         Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
         Adopted unanimously.

Subject: Douglas Street/Wickes Park Residential Development Opportunity
         Manager’s Recommendation: I recommend the Request for Sealed Bid
Proposal for the Douglas Street/Wickes Park Residential Development opportunity be
received and filed.
         Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
         Adopted unanimously.

        All City Manager recommendations to this point were adopted by general
consent. The following was considered after discussion.

Subject: Blanket Purchase Order For Electric Parts
         Manager’s Recommendation: I recommend that blanket purchase orders be
approved and issued to the City’s primary suppliers of electrical parts and supplies in the
following amounts from July 1, 2005 through June 30, 2006.

         *Marshall E Campbell Company                    $3,000.00
          Saginaw (in-city)

         *Standard Electric Company                      $3,000.00
         Saginaw (out-city)

         *Kendall Electric                               $3,000.00
          Saginaw (in-city)

Funds for these parts and supplies are available in the General Fund Traffic Engineering
Account Nos. 101-4620-791-7330 ($4,500.00) and 101-4621-791-7330 ($4,500.00).
          Justification: Since June 26, 2000, City Council has approved a procedure for
purchasing electrical parts for the Traffic Engineering section. Traffic Engineering requires
the purchase of a vast array of electrical parts and supplies for maintaining the City’s
electrical devices such as traffic signals and streetlights. Because these are random
346                              JULY 11, 2005

repairs, there is no feasible means to predetermine quantities and type of parts that will
be needed in any given time period. Issuing individual purchase orders for the many
items purchased is costly and administratively time consuming. Traffic Engineering
personnel will price quote items and award purchases to the lowest and best vendor for
each item. The parts and supplies will be ordered from the successful bidder and billed to
the respective purchase order. Therefore, it is clearly in the best interest of the City to
continue this procedure from July 1, 2005 through June 30, 2006.
          Council Action: Councilman Soza moved that the recommendation of the City
Manager be approved, with the exception of keeping and ordering only from the two in-
City suppliers
          Adopted unanimously.

Subject: Extension of benefit coverage for laid-off Police Officers
          Manager’s Recommendation: I recommend the extension of benefit coverage
for laid-off police officers through July 31, 2005.
          Justification: As a part of City efforts to present a balanced fiscal budget, ten
Police Officers were recently laid off from the Saginaw Police Department. Six of those
layoff notices indicated an effective date of June 30, 2005. Typically, benefit coverage for
these six officers and their families would terminate that same date. This is a request for
approval of a one-month extension of their health, dental and vision coverage, thus
providing benefit coverage for those six officers and their families through July 1, 2005.
The total cost for this extension is $4,325.53. Funds are available in the Public
Safety/Patrol Health Insurance Account No. 101 3011 7101 ($2,342.22) and Community
Policing Health Insurance Account No. 260 3320 7101 ($1,983.31).
                                                                                        nd  rd
          The other four laid-off Police Officers have effective lay-off dates of July 2 , 3 ,
       th                                                          st
and 4 . Benefit coverage for them already extends to July 31 .
               Council Action: After some discussion on the City Manager making promises
to the officers without first obtaining Council approval; the fact that this was a one-time
exception and not a policy decision; and Council stating that all other employees be
afforded the same opportunity, Councilman Coleman moved that the recommendation of
the City Manager be approved for these six officers, with the proviso that if this situation
occurs again, it has to be brought back to Council for review and adoption.
          Adopted unanimously.

Subject: Call Back of Two Saginaw Police Officers
         Manager’s Recommendation: I recommend approval to return two Saginaw
Police Officers recently laid off utilizing the drug forfeiture funds.
         Justification: MCL.333-7524 Act 368 of 1978 allows the use of drug forfeiture
funds to pay salaries of police officers engaged specifically in narcotics enforcement. The
Saginaw Police Department’s “Safe Streets Team” satisfies that criteria. Forfeiture
funding by state law can only be utilized to enhance the narcotics enforcement effort and
cannot be used to “supplant” general fund salaries. Therefore, these funds will be used
to pay two members of Safe Streets and the general fund monies currently used to pay
those two police officers’ salary will be used to call back two laid off police officers.
                                JULY 11, 2005                                     347

        Council Action: Councilman Coleman moved that the recommendation of the
City Manager be approved.
        Adopted unanimously.

Subject: Budget amendment for FY 06 due to County Grant
         Manager’s Recommendation: I recommend approval of the budget amendment
of $80,000.00 to the FY 2005/06 budget to the appropriate General Fund accounts.
Funds are to be distributed to the General Fund Account No. 101-0000-571.67-07 Other
Revenue.
         Justification: On June 6, 2005, City Council approved a contract with Saginaw
County whereby the City will provide inspection services for Saginaw County in
conjunction with grant funding that the County received. Saginaw County has agreed to
fund one position in the Inspections Division for a period of three years. This revenue
was not included in the fiscal year 2005/06 budget as adopted therefore necessitating the
budget adjustment.
         Council Action: Councilman Coleman moved that the recommendation from the
City Manager be approved.
         Adopted unanimously.

                          INTRODUCTION OF ORDINANCES
Subject: Amendment to Title III, Administration, Chapter 33, Taxation and Assessment,
§33.02, Computation of Taxable Income, of the Saginaw Code of Ordinances.
         Manager’s Recommendation: It is recommended that Title III, Administration,
Chapter 33, Taxation and Assessment, §33.02, Computation of Taxable Income, of the
Saginaw Code of Ordinances be amended.
         Justification: The Income Tax Department has determined that amending the
amount of personal and dependency exemption could increase tax revenue. The
amendment will add at least $250.00 of taxable income to every tax return. Specifically,
§33.02(D) and (E) will be added to state that for the tax years beginning after 2004,
personal and dependency exemptions will be $750.00.
         Council Action: This Council Communication is for explanation of the Ordinance
and requires no separate approval.

         Councilman Coleman moved to postpone introducing an ordinance entitled and
reading as follows:

         AN ORDINANCE TO AMEND §33.02, “COMPUTATION OF TAXABLE
         INCOME” OF CHAPTER 33, ”TAXATION AND ASSESSMENT” OF TITLE
         III, “ADMINISTRATION,” OF THE SAGINAW CODE OF ORDINANCES,
         O-1.

         Adopted unanimously.
348                             JULY 11, 2005

Subject: Enactment of Ordinance for Housing Tax Exemption
           Manager’s Recommendation: I recommend that the attached ordinance for Low
Income Housing Tax Exemption be enacted. This will allow for service charges for public
services in lieu of taxes for a housing development.
           Justification: MV Communities, Ltd (“MVC”) intends to develop a plan to formally
subdivide a parcel of land in the southeast area of the City into individual lots and
construct single- family homes on those lots. Alternately, MVC may seek approval for a
site plan condominium for the same group of single-family homes. The City can help
facilitate this project by exempting the property from property taxes for a period of 15
years. In order to partially compensate the City for the additional cost of services to the
additional residents, the developers have agreed to enter into an agreement to pay the
City a fee equal to 8% of the shelter rents obtained. The project is at an early stage of
development, but the developer seeks approval of a PILOT ordinance now so that he may
submit his application for tax credits in a timely manner.
           Council Action: This Council Communication is for explanation of the
ordinance and requires no separate approval

         Councilman Coleman introduced an ordinance entitled and reading as follows:

         AN ORDINANCE TO ADD SECTION §33.48, “LOW INCOME HOUSING
         TAX EXEMPTION,” TO CHAPTER 33, “TAXATION AND ASSESSMENT”
         OF TITLE III, “ADMINISTRATION” OF THE CITY OF SAGINAW CODE OF
         ORDINANCES, O-1.

          Adopted unanimously. Laid over under the charter provision.

                CONSIDERATION AND PASSING OF ORDINANCES
         Councilwoman Cottrell moved that the enactment of an ordinance introduced,
June 1, 2005, entitled and reading as follows, be postponed:

         AN ORDINANCE TO ADD SECTION 110.35 “GENERAL BUSINESS
         LICENSE” TO CHAPTER 110 “GENERAL PROVISIONS” OF TITLE XI
         “BUSINESS REGULATIONS” OF THE SAGINAW CODE OF
         ORDINANCES

         Adopted unanimously.

                                    RESOLUTIONS
Subject: Adoption of Resolution to Authorize City to Issue Water and Sewer Bonds
         Manager’s Recommendation: I recommend adoption of the attached resolution
authorizing the issuance of tax-exempt bonds for capital improvements at the City’s
Wastewater Treatment Plant.
         Justification: A resolution is listed under the regular order of business that
authorizes the issuance of tax-exempt bonds to finance capital improvements at the City’s
                                  JULY 11, 2005                                       349

Wastewater Treatment Plant. The costs of the improvements, and repayments of the
bonds will be paid through sewage service charges.
        Council Action: This Council Communication is for explanation of the resolution
and requires no separate approval.

       RESOLUTION TO ISSUE TAX-EXEMPT BONDS TO FINANCE CAPITAL
       IMPROVEMENTS TO THE CITY’S WASTEWATER TREATMENT PLANT
          Councilman Coulouris offered and moved adoption of the following resolution:
          WHEREAS, the City of Saginaw (the "City") proposes to issue its tax-exempt
bonds (the "Bonds") under Act 34, Public Acts of Michigan, 2001, as amended ("Act 34"),
to finance the hereinafter described capital improvements in the City (the "Project"); and
          WHEREAS, it is anticipated that the City will advance a portion of the costs of
the Project prior to the issuance of the Bonds, such advance to be repaid from proceeds
of the Bonds upon the issuance thereof; and
          WHEREAS, Section 1.150-2 of the Treasury Regulations on Income Tax (the
"Reimbursement Regulations") specifies conditions under which a reimbursement
allocation may be treated as an expenditure of bond proceeds, and the City intends by
this resolution to qualify amounts advanced by the City to the Project for reimbursement
from proceeds of the Bonds in accordance with the requirements of the Reimbursement
Regulations.
          NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Saginaw, Michigan, as follows:
          1. The Project shall consist of making capital improvements to the City's
wastewater treatment plant, including without limitation screening and grit removal
equipment, new and renovated primary treatment tanks, raw sewage pumping station
improvements and related improvements.
          2. The maximum principal amount of Bonds expected to be issued for the
Project is $10,000,000.
          3. The City hereby declares its official intent to issue the Bonds to finance the
costs of the Project, and hereby declares that it reasonably expects to reimburse the
City's advances to the Project as anticipated by this resolution.
          4. The Bonds shall be authorized by proper proceedings subsequent to this
resolution.
          5. The Clerk is hereby instructed to publish the notice attached hereto as Exhibit
A once in a newspaper of general circulation in the City of Saginaw, which notice shall not
be less than ¼ page in size in such newspaper, with such changes as the Clerk shall
deem necessary or appropriate, upon the advice of bond counsel.
          6. All prior resolutions and parts of resolutions insofar as they may be in conflict
with this resolution are hereby rescinded.

                             EXHIBIT A
 NOTICE OF INTENT TO ISSUE BONDS BY THE CITY OF SAGINAW, MICHIGAN
TO THE ELECTORS OF THE CITY OF SAGINAW, MICHIGAN:
350                              JULY 11, 2005

NOTICE IS HEREBY GIVEN, that the City of Saginaw, Michigan, intends to issue limited
tax general obligation bonds, in one or more series, in the principal amount of not to
exceed $10,000,000 for the purpose of defraying all or part of the cost of making capital
improvements to the wastewater treatment plant of the City's sewage disposal system
(the "Sewage System"), including without limitation screening and grit removal equipment,
new and renovated primary treatment tanks, raw sewage pumping station improvements
and related improvements.
          The bonds of each series will mature in not to exceed twenty-five (25) years and
will bear interest at rates to be determined at a competitive or negotiated sale but in no
event to exceed such rates as may be permitted by law.
          The bonds will be issued under and pursuant to the provisions of Act No. 34,
Public Acts of Michigan, 2001, as amended, and are expected to be paid from the
revenues derived from the users of the Sewage System. In addition, the full faith and
credit of the City of Saginaw will be pledged to pay the principal of and interest on the
bonds as the same shall become due. The City of Saginaw will be obligated, as a first
budget obligation, to advance moneys from its general funds or to levy ad valorem taxes
on all taxable property within its corporate boundaries to pay the principal of and interest
on the bonds as the same shall become due in the event and to the extent that the
revenues derived from the users of the Sewage System are not sufficient to make such
payments. Taxes levied by the City of Saginaw for the payment of such principal and
interest will be subject to applicable constitutional, statutory and charter limitations.
                         RIGHT TO PETITION FOR REFERENDUM
          This notice is given, by order of the City Council of the City of Saginaw, to and
for the benefit of the electors of the City of Saginaw in order to inform them of their right to
petition for a referendum upon the question of the issuance of the aforesaid bonds. The
bonds will be issued, without submitting such a question to a vote of the electors, unless
within 45 days after the date of publication of this notice a petition requesting a
referendum upon such question, signed by not less than 10% or 15,000 of the registered
electors residing within the City of Saginaw, whichever is the lesser, shall have been filed
with the undersigned City Clerk. In the event that such a petition is filed, the bonds will
not be issued unless and until the issuance thereof shall have been approved by the vote
of a majority of the electors of the City of Saginaw qualified to vote and voting thereon at
a general or special election.
                                 FURTHER INFORMATION
          Further information relative to the issuance of said bonds and the subject matter
of this notice may be secured at the office of the City Clerk of the City of Saginaw, 1315
S. Washington Avenue, Saginaw, Michigan 48601.
          This notice is given pursuant to the provisions of Act 34, Public Acts of Michigan,
2001, as amended.
                                                                            Diane M. Herman
                                                                             Acting City Clerk
Dated: July 11, 2005                                                         City of Saginaw

         Adopted unanimously.
                                 JULY 11, 2005                                       351

                                 UNFINISHED BUSINESS
Subject: Renewal of Agreement with Currie Kendall PLC for Legal Services
          Manager’s Recommendation: I recommend approval of the Agreement for
Professional Legal Services with Currie Kendall, PLC. This contract has been approved
by the City Manager as to substance and the City Attorney as to form.
          Justification: The city has entered into agreements with four local law firms to
provide legal services to the city. These services are necessary in the areas of conflict of
interest, expertise and work overflow. These contracts are five years in duration, but
either party may elect to terminate the contract upon sixty days notice. There is no
minimum amount of work guaranteed or promised to any law firm. The purpose of the
contracts is to provide a pre-existing framework for assignments sent to the various firms.
 The contracts set the hourly rate for services and the amount of expenses charged.
          The law firm of Currie Kendall, PLC, has been providing services to the city for
many years. This is primarily through attorney Peter C. Jensen, a local attorney, with a
good deal of experience in municipal law and general litigation. This contract is now due
to expire on June 30, 2005. Currie Kendall, PLC has offered to renew the contract for an
additional five years at the same rates, terms and conditions.
          Council Action: Councilwoman Cottrell moved that the recommendation from the
City Manager be approved.
          Adopted unanimously.

Subject: Renewal of Agreement with Gilbert, Smith & Borrello, P.C. for Legal Services
          Manager’s Recommendation: I recommend approval of the Agreement for
Professional Legal Services with Gilbert, Smith & Borrello, P.C. This contract has been
approved by the City Manager as to substance and the City Attorney as to form.
          Justification: The City has entered into agreements with four local law firms to
provide legal services. These services are necessary in the areas of conflict of interest,
expertise and work overflow. These contracts are five years in duration, but either party
may elect to terminate the contract upon sixty days notice. There is no minimum amount
of work guaranteed or promised to any law firm. The purpose of the contracts is to
provide a pre-existing framework for assignments sent to the various firms. The contracts
set the hourly rate for services and the amount of expenses charged.
          The law firm of Gilbert, Smith & Borrello, has been providing services to the City
for many years. At one time, this was primarily through attorney Peter C. Jensen when
the firm was Jensen, Smith, Gilbert & Borrello, P.C. When Mr. Jensen moved to another
firm, the workers’ compensation assignments stayed with Gilbert, Smith & Borrello and
assignments for water work were added after Andre Borrello joined the firm. This contract
expired on June 30, 2005. Gilbert, Smith & Borrello, PC has offered to renew the contract
for an additional five years at the same rates, terms and conditions, with the exception
that the rate for water related work will increase from $100.00/hr to $115.00/hr.
          Council Action: Councilman Coulouris moved that the recommendation from the
City Manager be approved.
          Adopted by the following vote:
          Ayes: Councilpersons Coleman, Cottrell, Coulouris and Mayor Ham-4.
          Nays: Councilpersons Soza, Thurin and O’Neal-3.
352                            JULY 11, 2005

                     MOTIONS AND MISCELLANEOUS BUSINESS
Subject: Liquor License for 115 N Hamilton
         Manager’s Recommendation: I recommend approval to transfer ownership of
the 2004 Class C licensed business with dance-entertainment permit for 115 N. Hamilton.
         Justification: Triangle Pride, Inc. requests a transfer of ownership of the 2004
Class C licensed business with dance-entertainment permit from Lucious Latin Cuisine,
Inc. The business is located at 115 N. Hamilton, Saginaw, MI 48602, in the County of
Saginaw.
         The Saginaw County Health Department, City of Saginaw Fire Prevention and
the City Building Inspections Division have approved this transfer.
         Council Action: This Council Communication is for informational purposes only
to explain the resolution and requires no separate approval.

    RESOLUTION APPROVING TRANSFER OF CLASS C LICENSED BUSINESS
               WITH DANCE-ENTERTAINMENT AT 115 N. HAMILTON
          Councilwoman Cottrell offered and moved adoption of the following resolution:
          WHEREAS, on or about April 7, 2005, the City Clerk’s Office received a Local
Approval Notice from the State of Michigan Liquor Control Commission; and
          WHEREAS, said notice advised that Triangle Pride, Inc. had applied for a
transfer of ownership of the 2004 Class C Licensed Business with Dance-Entertainment
permit, located at 115 N. Hamilton, Saginaw, Michigan, 48602, Saginaw County, from
Lucious Latin Cuisine, Inc.; and
          WHEREAS, the Saginaw County Health Department, City of Saginaw Fire
Prevention and the City Building Inspections Division have approved 115 N. Hamilton for
this transfer.
          NOW, THEREFORE, BE IT RESOLVED, that the City Council for the City of
Saginaw by this Resolution does hereby approve the transfer of ownership of the 2005
Class C Licensed Business with Dance-Entertainment permit, located at 115 N. Hamilton,
Saginaw, Michigan, 48602, Saginaw County, from Lucious Latin Cuisine, Inc., to Triangle
Pride, Inc.
          Adopted unanimously.

                                         ****

         Councilman Coulouris moved to go into closed session to discuss a written legal
opinion on the City Manager’s contract. Adopted by the following vote:
         Ayes: Councilpersons Coleman, Cottrell, Coulouris, O’Neal, Soza, Thurin and
Mayor Ham -7.
         Absent: Councilman Haynes-1.

         (At 8:57 p.m., Council entered closed session.)
                              JULY 11, 2005                                  353

         Upon returning from closed session at 10:00 p.m., Councilwoman Thurin moved
to adjourn the meeting.
         Adopted unanimously.



Diane M. Herman
Acting City Clerk

								
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