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REGULAR MEETING OF THE COUNCIL OF THE CITY OF SAGINAW, MICHIGAN, HELD MONDAY, JUNE 27, 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 5:30 p.m. were Councilpersons Charles Coleman, Carol Cottrell, Andrew J. Coulouris, Amos O’Neal, Daniel Soza, Roma Thurin, Mayor Wilmer Jones Ham and Councilman Willie Haynes, Chair. John Stemple, Planning and Zoning Coordinator, discussed the 2005-2010 Consolidated Plan and 2005-2006 Annual Action Plan required by HUD; Tom Fancher, City Attorney, and Peter Ewend of Saginaw Bay Underwriters discussed the various st options for the City’s insurance policies to be renewed on July 1 ; City Attorney Tom Fancher, JoAnn Crary, of Saginaw Future and outside counsel, André Borrello explained the Hemlock Semiconductor Public Act 328 Agreement. 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, Willie Haynes, Amos O’Neal, Daniel Soza, Roma Thurin and Mayor Wilmer Jones Ham-8. ANNOUNCEMENTS By request of City Manager Cecil Collins, the City Clerk read the following letter from outside counsel, André Borrello into the record:
June 27, 2005
Cecil A. Collins, Jr. City Manager City of Saginaw 1315 South Washington Avenue Saginaw, Michigan 48601 RE: Thomas Township Final Water Agreement Dear Mr. Collins: It is with pleasure that I enclosed four (4) original copies of the above referenced Agreement for execution. As we have discussed over the past several days, along with City staff, the terms and conditions of this Agreement are consistent with that which was approved by City Council on June 7, 2005, subject to approval by the City Manager and City Attorney. Therefore, now with your approval, all parties signatory thereto must execute these originals two of which are to remain with the City and two of which should be sent to Mr. Taylor, Thomas Township Manager.
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This Agreement along with the Act 425 and Act 328-related documents that have been executed and filed, promise to bring over $2 million into the City’s general fund – and that is only the beginning. All new developments, as prescribed in the Agreement, will be subject to revenue sharing as well. As a result, the City stands to gain substantially from execution of this Agreement for many years to come. Of course, the actual revenue sharing agreement pertaining to new residential development must be drafted and executed as well and I will begin work on that presently. Thank you for your perseverance throughout the negotiation process. I am proud to have been part of this initial effort and look forward to many more successful negotiations. Yours very truly,
André R. Borrello
(The Agreements were passed down to the Mayor for her signature.) PUBLIC HEARING The City Clerk announced the public hearing for the P. A. 328 Agreement with Hemlock Semiconductor. JoAnn Crary of Saginaw Future, and Earl Jesse spoke in favor of the agreement. The Mayor Ham called for additional comments. No one else was heard. Councilwoman Thurin moved to declare the hearing closed. Adopted unanimously. PERSONAL APPEARANCES On request of the Mayor, Councilman Coleman moved to allow Irene Hensinger to speak. Adopted unanimously. Irene Hensinger, Interim Director of the Castle Museum, announced her research had revealed that on June 28, 1889, the Michigan Legislature passed Act 455 of the local acts, which consolidated East Saginaw and Saginaw City and provided for a City th Hall. Based on her research, she requested Council designate June 28 as Saginaw’s official birthday. (The Mayor led all present in singing Happy Birthday.) Councilman th Coleman then moved to declare June 28 as the birthday of the City of Saginaw, and if an ordinance is needed one should be drafted. Adopted unanimously. Kathleen Chaltraw, 714 Congress, said the City has many problems. Mentioned the City Manager wanting a pay increase when the City has no money. Said the people voted no in May because they either couldn’t afford more taxes or didn’t trust where the money would be spent. Praised Mayor Ham, Mayor Protem Cottrell and Councilman Coulouris for how they worked together. Said they need to get the other Councilpersons on board. Jack Schmidt, (no address given), said there would have been a lot less police officers laid off it they would have stayed in the City and paid taxes. Complimented rd Councilwoman Thurin for trying to cut more officers because over 2/3 of the General
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budget goes to public safety. Spoke against the Police Department, in particular, the Police Chief and Officer Kuhn. Denise Dutoi, (no address given), spoke against Councilpersons Thurin, Soza, O’Neal and Haynes. Said they are not acting in the best interest of the City with the choices they are making. Used examples of them selecting Mr. Jesse over Mr. Evans and the cuts they made to the Police Department. Earl Jesse, 310 S. Harrison, suggested the City give people a 5%-10% discount off every inspection fee, (building, electrical, etc.) for a period of one year to allow people to fix their houses. Mentioned the need to revise the Charter. Fred Nerio, 1436 Marquette, requested Council vote on having meetings televised again. Said he knows it’s not easy to be a Councilperson, but believes they need to start working together as a group. Need to stop having the 4-4 vote and choose either Mr. Evans or Mr. Jesse. Gail DeCaire, 1714 Delaware, spoke against General Motors and how it outsourced its medical department, leaving her without a job after 24 years as a registered nurse. Said the legal system is corrupt. Spoke against the war in Iraq and said the monies should be going towards our cities. REMARKS OF COUNCIL Mayor Ham thanked all who spoke. Said she was tired of all the negative comments against Council and the community. She announced the next Unity in Diversity to be held July 21, 2005 at 6:00 p.m. at the Howard Johnson Hotel. Those who want to be a part of moving the City forward should attend. Councilman Soza mentioned how Councilwoman Thurin has had her life threatened. Said she has acted rational and logical under the circumstances. Requested a prior report on the cost of bottling and selling the City’s water. Said he was still waiting for a report on the number of homicides and number of officers for the past 30 years. Also requested a report on what block grant monies had been allocated for police in the past 12 years and which Councilpersons had voted for it. Councilwoman Cottrell reminded all of the July 4, 2005 fireworks. Said they will start at 10:15 and be broadcasted on WNEM. Mentioned the Police Department had a fundraiser and raised $1,500 for the fireworks and the Saginaw City and Township rd firefighters would be having a “fill the boot” campaign on Saturday, July 3 . (The Mayor commended Councilwoman Cottrell and her committee for the awesome job they do with the fireworks.) Councilman O’Neal said he had received threats as well and rude comments made to him when he left the Council Chambers. Said he was amazed at the lack of professionalism of some of the City’s police officers. He thanked Tom Darnell, Director of Public Services, for addressing some of Lawrence McKinney’s concerns with regard to Vets Park. Retracted his comment on not being able to buy lunch for two with the money Council receives for attending a meeting. Said he only meant it figuratively. Said literally, however, you can’t fill up your car with a tank of gas. Councilman Coulouris mentioned the Cool Cities conference he had attended the year before. Said one of the topics was rerouting the truck traffic on Washington Avenue. Said the trucks are overweight and use Washington to avoid the weigh station on I-75. Said they are a nuisance. They tear up the roads and are loud. Suggested the
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police start enforcement proceedings to raise revenue and steer the traffic back to I-75. Said the weigh station has been closed due to budget cuts so they no longer need to use Washington. Encouraged Council to turn the TV back on. Said a Councilperson who voted to cut it, has to make the motion to restore it. Councilman Coleman spoke on the recent death of Coach Claude Marsh. Mentioned the many lives he touched and how he not only taught sports, but made sure his athletes were leaders in the community. Thanked the City employee who cleaned up the graffiti from the Gazebo on Ojibway Island. Mayor Ham announced the groundbreaking ceremony to be held the next day for the East Genesee Corridor Project. Requested Councils’ attendance if possible. Mayor Ham thanked Councilman O’Neal for his leadership on the Boards and Commissions Committee. Said his term expired this evening. Said she will need to appoint two new members. Announced the next Town Hall meeting will be Thursday, October 27, 2005 at 6:00 p.m. at the Ballroom of the Howard Johnson Hotel. Mentioned she was in Detroit, Michigan with Tom Miller and Tom Miller, Jr. Said the State has awarded a $30,000 grant for another study in Downtown Saginaw. Thanked Tom Miller, Jr. for writing the grant. REPORTS FROM BOARDS AND COMMISSIONS AND COMMITTEES Mayor Ham appointed Councilman Coulouris and Councilman Haynes to the Boards and Commissions Committee. Councilperson Coulouris announced the Water Subcommittee would meet on July 12, 2005 at 6:00 p.m. in Council Chambers. REPORTS FROM CITY MANAGER Management Update City Manager Cecil Collins, Firefighter Aileen Ciesla and Battalion Chief Lathel Wise discussed and explained the SAFER Grant, which was on the agenda for approval. The deadline for the Grant Application was the following day. The Federal share of salaries and associated benefits was limited to a total of $100,000 per position over the course of the 4-year performance period. In the fifth year, the City would be responsible for all costs. Said the Grant did not include training costs, however, the City holds its own academies and could train its own firefighters. The City Manager and City Attorney suggested Council reduce the number to 7 firefighters, which is the current number of vacancies in the department. Recommended Actions Subject: 2005–2010 Consolidated Plan and 2005–2006 Annual Action Plan Manager’s Recommendation: I recommend approval of the 2005–2010 Consolidated Plan and 2005–2006 Annual Action Plan and that it be submitted to HUD. Justification: Transmitted herewith for Council approval is the City’s Consolidated Plan (City Clerk’s File No. A-7534) for fiscal year 2005-2006 through 2009– 2010 and 2005 – 06 Annual Action Plan. On March 21, 2005, City Council approved a contract with McKenna Associates, Inc. to complete a Consolidated Plan and Annual Action Plan for the City of Saginaw. McKenna has completed the Consolidated Plan and Annual Action Plan and is ready for Council approval and follow-up submission to HUD. HUD requires that CDBG entitlement communities develop and submit five-year
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Consolidated Plans. The City’s current five year Consolidated Plan will expire on June 30, 2005. The new Plan that has just been completed will run for the next five fiscal years beginning July 1, 2005. HUD requires that Consolidated Plans be developed to estimate needs in various categories of rental and homeowner households; non-housing community development needs; needs of homeless families and individual needs of special needs population; lead-based paint needs; assisted housing needs and inventory; and an inventory of various types of assisted and non-assisted housing. The City’s 2005 - 10 Consolidated Plan provides broad guidance for CDBG, ESG and HOME expenditures during the upcoming five years. In general, it facilitates broad assistance to housing, public facilities, economic development, public services and homeless activities. The Plan can be amended as we proceed during the next five years. Council Action: Councilman Coulouris moved that the recommendation from the City Manager be approved. Adopted unanimously. Subject: Department of Justice Equitable Sharing Agreement Manager’s Recommendation: I recommend approval of the Department of Justice Equitable Sharing Agreement. The Agreement has been approved by me as to substance and the City Attorney as to form. Justification: The Department of Justice (“DOJ”) and City have agreed to enter into a Federal Equitable Sharing Agreement. The agreement is for three years and will expire on September 30, 2008. Under the terms of the agreement, the City will receive a percentage of forfeited funds from DOJ. During the past several years, the City has entered into the agreement in order to receive forfeited funds. In addition, the funds will be disbursed pursuant to an electronic funds transfer. Council Action: Councilman Coulouris moved that the recommendation of the City Manager be approved. Adopted unanimously. Subject: Optional Meter Arrangement Agreement Manager’s Recommendation: I recommend that the Optional Meter Agreement with General Motors (“GM”) be approved. The Agreement has been approved by me as to substance and the City Attorney as to form. Justification: The City and Saginaw Malleable Iron Facility (”Malleable”), a division of GM, have agreed to enter into an Optional Meter Agreement. Specifically, GM will provide for the relocation of existing meters from the west and east pit locations to above ground locations amenable to the City. Also, GM will install back flow preventers at the relocated west and east meter locations. In addition, pursuant to the City’s Water Rules and Regulations, if Malleable exceeds 450,000 gallons per month usage, the City will charge it a sewer RTS and commodity charge. Council Action: Councilman Coulouris moved that the recommendation of the City Manager be approved. Adopted unanimously.
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Subject: Richard C. Powell Second Employment Contract Amendment Manager’s Recommendation: I recommend that the second Employment Contract Amendment with Richard C. Powell be approved. The Amendment is approved by me as to substance and the City Attorney as to form. Funds for the contract amendment are available in the General Fund Salaries Part-Time Account No. 101-1743-711-7040, Sewer Salaries Part-Time Fund Account No. 590-5311-711-7040 and Water Salaries Part-Time Fund Account No. 591-5310-7117040. Justification: On September 13, 2004, City Council approved an Employment Contract with Mr. Powell. The original contract did not include a weekly, maximum amount of compensation. The contract amendment placed a cap on the weekly compensation that Mr. Powell could earn. City Council approved the first contract amendment on April 4, 2005. The second contract amendment is for the time period July 1, 2005 through September 30, 2005. Mr. Powell’s hourly rate will be reduced to Forty-Two Dollars and 50/100 ($42.50) and his total compensation will not exceed Six Hundred Twenty-Five Dollars and 00/100 ($625.00) weekly. Council Action: Councilman Coulouris 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: 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 Thurin moved that the recommendation from the City Manager be tabled until the meeting of July 11, 2005, and the law firm’s current contract with the City be extended until that time. Adopted unanimously.
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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 agreement is subject to approval 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 agreements vary in duration and either party may elect to terminate the agreement upon sixty days notice. There is no minimum amount of work guaranteed or promised to any law firm. The purpose of the agreements is to provide a pre-existing framework for assignments sent to the various firms. The agreements set the hourly rate for services and the amount of expenses charged. The law firm of Gilbert, Smith & Borrello, P.C. has been providing services to the City for many years. This agreement is now due to expire on June 30, 2005. Gilbert, Smith & Borrello, P.C. has offered to renew the agreement with increased rates for an additional three years. The agreement will expire on June 30, 2008. Council Action: Councilwoman Thurin moved that the recommendation from the City Manager be tabled until the meeting of July 11, 2005, and the law firm’s current contract with the City be extended until that time. Adopted unanimously. Subject: Insurance proposals for the City’s Commercial General Liability, Law Enforcement Liability, Automobile Liability, Commercial Automobile Physical Damage, Excess Liability Policies and Workers’ Compensation policies. Manager’s Recommendation: I recommend approval of the insurance proposal with Genesis Insurance Company, Lexington Insurance, Princeton E&S and Safety National Insurance for the City’s Commercial General Liability, Law Enforcement Liability, Automobile Liability, Commercial Automobile Physical Damage and Excess Liability Policies and Workers’ Compensation, effective July 1, 2005 through June 30, 2006, and that I, and/or my designee, be authorized to execute any and all necessary insurance documents under the plan. I also recommend that any savings in premiums obtained be paid into the Self Insurance Fund and preserved there for potential payments of any additional claims. I also recommend that the liability insurance of Policy No. CAP5026923AWR with Cincinnati Insurance Company be cancelled. Coverage documents, policy changes and contracts to implement the new insurance are approved subject to the City Manager’s approval as to substance and the City Attorney’s approval as to form. Funds for the insurance premiums are budgeted in the various departmental budgets. Justification: Recently, Saginaw Bay Underwriters received proposals for the City’s Commercial General Liability, Law Enforcement Liability, Automobile Liability, Commercial Automobile Physical Damage, Excess Liability and Workers’ Compensation policies to be effective July 1, 2005 through June 30, 2006. A more detailed explanation of the attached proposals is as follows and as shown on the attachment: Genesis: The coverage and proposed premium of $418,000 remain unchanged from the prior year. I recommend that we increase the amount of self-insured
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retention (“SIR”) from $150,000 to $200,000. premiums by $68,000. This will decrease annual
Lexington: The commercial automobile physical damage policy has the same coverage and a slightly lower premium ($140,540 to $137,013) due to a reduced number of vehicles. Savings could be obtained by increasing the deductible limit, but I recommend that we maintain the same limit. St. Paul’s – Travelers: This property policy is not presently up for renewal, but the City may make changes to the existing policy. By increasing the deductible from $25,000 to $75,000 the annual premium savings will be $17,389. I recommend that change. Princeton Excess and Surplus: This is the first “umbrella” policy, providing $5,000,000 in liability coverage after the first $1,000,000 provided by Genesis. Coverage is the same as in the prior year and the premium has decreased from $137,725 to $135,925. I recommend that this be renewed unchanged. Lexington: This is the second “umbrella” policy, providing an additional $15,000,000 in liability coverage. Coverage is the same, and the premium has decreased from $170,000 to $161,925. If the City reduced the amount of this policy to $5,000,000 it could save approximately $82,769 in 2005-2006. This has been highlighted on the attachment for further discussion. At this time I do not recommend that we reduce the coverage. Safety National: This is a new carrier for the Excess Workers’ Compensation and Employer Liability coverage. It provided a quotation for a lower rate than the current carrier, Employers Reinsurance Corporation. The prior year’s premium was $52,681. The same coverage may be obtained now for $49,861. By increasing the SIR from $500,000 to $600,000 the premiums would be reduced by $10,911. I recommend that we increase the self-insured retention and decrease the premium. The three areas of premium savings suggested above would increase the risk of loss in some areas. I recommend that the savings obtained be designated for use in the Self Insurance Fund to adequately provide for any additional expected payments from that fund. I also recommend the cancellation of Policy No. CAP5026923AWR with Cincinnati Insurance Company. It provided liability insurance for real property that has been recently sold to a private corporation. The policy period lasts until 2/1/07 and cancellation will provide for a refund of some of the premium. Council Action: Councilman Coleman moved that the recommendation from the City Manager be approved. Adopted unanimously.
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The City Manager recommended the savings be placed in a reserve fund to cover any potential loss and liability. Councilman Coleman moved to approve the City Manager’s recommendation. (Councilwoman Thurin stated her concern with regard to this money staying in this fund with the possibility of new Council members in November and the City’s current financial constraints.) Adopted unanimously. RESOLUTIONS 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 explanation of the resolution and requires no separate approval. RESOLUTION APPROVING TRANSFER OF LIQUOR LICENSE FOR 115 N. HAMILTON Councilman Coulouris 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. (The City Manager requested the Resolution be rejected due to issues the Finance Department is working on with the licensee.) Rejected unanimously. Subject: Adoption of Act 328 Resolution for Hemlock Semiconductor Manager’s Recommendation: I recommend adoption of the Public Act 328 Personal Property Tax Abatement Resolution for Hemlock Semiconductor Corporation. Justification: A resolution is listed under the regular order of business that approves the exemption from personal property taxes for new personal property for
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Hemlock Semiconductor Corporation (“HSC”) under Public Act 328 of 1998, as amended. The application was received on June 20, 2005. In order to qualify for the exemption under Act 328, the company must be in an eligible distressed area, be part of an eligible district and be an eligible business. The City of Saginaw has been determined to be an eligible distressed area. The property upon which HSC is located was transferred to the City of Saginaw for thirty years pursuant to an Act 425 Agreement executed by the City and Thomas Township on June 20, 2005. HSC is now part of the City and therefore in an eligible distressed area. HSC is in an existing Industrial Development District, which is an eligible district. An eligible business is one engaged in manufacturing, mining, research and development, wholesale and trade or office operations. HSC qualifies as a manufacturing operation. The City of Saginaw has developed a policy for reviewing Public Act 328 applications considering job creation, job retention, cost of project, type of use and percent of city residents employed. Based on the above criteria, a number of points are assigned, which determines the number of years recommended. Using this rating criteria, the HSC application would qualify for a twelve-year abatement, the maximum normally recommended. However, the policy also provides that a longer period may be recommended should other incentives be negotiated. In this case, HSC will pay substantial annual amounts in connection with the Act 425 agreement and the water availability agreements. These payments will last for thirty years, the term of the Act 425 agreement. For those reasons, the Tax Abatement Review Committee recommended the approval of an Act 328 abatement for a term of thirty years. The City and HSC also intend to enter into an agreement outlining these circumstances in more detail and setting forth the continuing obligations of the parties over the remaining years of the related resolutions and contracts. I expect to present this to Council for approval in the near future. Council Action: This Council Communication is for explanation of the resolution and requires no separate approval. RESOLUTION APPROVING PA 328 AGREEMENT WITH THOMAS TOWNSHIP Councilman Coleman offered and moved adoption of the following resolution: WHEREAS, The City of Saginaw and Thomas Township have entered into an agreement for the conditional transfer of property pursuant to Public Act 425 of 1984, as amended (“Public Act 425”), for a parcel containing the manufacturing facility of Hemlock Semiconductor Corporation (“HSC”); and WHEREAS, the City of Saginaw received from HSC an application on June 20, 2005, for exemption of new personal property pursuant to Public Act 328 of 1998, as amended (“Public Act 328”); and WHEREAS, the City of Saginaw held a public hearing on June 27, 2005, at which time, and with advance notice, the assessor and any and all representatives of the affected taxing units were afforded an opportunity to appear and be heard on the application and exemption request; and WHEREAS, the City of Saginaw is an eligible, distressed community under Public Act 328, and as acknowledged in the State Tax Commission Bulletin No. 9 on Exemption of New Personal Property to Assessing Officers, dated May 10, 1999; and WHEREAS, the property upon which HSC is located is, pursuant to the
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provisions of the Public Act 425 Agreement, part of the City of Saginaw for thirty years; and WHEREAS, HSC is located in a preexisting Industrial Development District, which is an eligible district pursuant to Public Act 328; and WHEREAS, HSC meets the eligible business requirements of Public Act 328 by being engaged primarily in manufacturing; and WHEREAS, the City of Saginaw has analyzed the Public Act 328 application by use of the Tax Abatement Review Committee, established pursuant to the City of Saginaw’s Public Act 328 Policy; and WHEREAS, the City of Saginaw and HSC intend to enter into an agreement outlining and confirming the above conditions; now THEREFORE, BE IT RESOLVED, that the City of Saginaw hereby approves the application of Hemlock Semiconductor Corporation for the exemption of new personal property pursuant to Public Act 328 of 1998, as amended, for the eligible Industrial Development District property legally described as follows: LEGAL DESCRIPTION OF PROPERTY: West one-half of Northeast one-quarter; also East one-half of Northwest one-quarter; one hundred and sixty (160 acres), Section 19, T12N, R3E. BE IT FURTHER RESOLVED, that the general property exemption under Public Act 328 shall be for a period of 30 years, corresponding with the term of the Public Act 425 conditional transfer, effective December 31, 2005 and ending December 31, 2034; and BE IT FURTHER RESOLVED, that the Clerk of the City of Saginaw shall cause the application for exemption of new personal property to be completed and shall cause the completed application and a copy of this resolution to be filed with the State Tax Commission. Adopted unanimously. Subject: Adoption of Resolution authorizing City Manager to apply for a grant from Staffing for Adequate Fire and Emergency Response (“SAFER”) from the U.S. Department of Homeland Security to assist in funding additional firefighter positions. Manager’s Recommendation: I recommend adoption of the Resolution authorizing the City Manager to apply for a grant from Staffing for Adequate Fire and Emergency Response (“SAFER”) from the U.S. Department of Homeland Security. This is a grant program designed to assist communities in hiring additional firefighters. Justification: The SAFER program will assist communities with grants up to $100,000 per firefighter position over a five-year period. Assistance is available according to this schedule: Year One: Year Two: Year Three: Year Four: Year Five; 90% percent of the actual costs or $36,000 80% percent of the actual costs or $32,000 50% percent of the actual costs or $20,000 30% percent of the actual costs or $12,000 No Federal Share - - all costs borne by the grantee
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The grant will pay the lesser of the two amounts above. This is the cost per firefighter, and the community can determine how many positions it wants to obtain. The community is obligated to maintain the position throughout the five-year period, with the cost increasingly falling on the community. If the positions are not fully funded for the full fiveyear period the community will be in default and may be required to return all or a portion of the Federal funds disbursed. Because of the long-term obligation this imposes upon the community, the Department of Homeland Security requires a certification that the governing body has been informed of the intent to submit the application and a commitment from it for the cost-sharing obligation under the grant. To fulfill this requirement, there is a Resolution submitted that Council may adopt, authorizing the City Manager to file this application and to receive funds for twelve firefighter positions and acknowledging the cost obligation over this five year period. The first payment would be by a mid year adjustment in the 20052006 budget year, and then by budget allocation in future years. Council Action: This Council Communication is for explanation of the resolution and requires no separate approval. There was much discussion on the issue. The City Manager recommended Council amend the original Resolution from twelve positions to seven. City Attorney Tom Fancher explained the level of staffing is determined on the day the grant is applied for. Since the grant application was being filed on the following day, if there were 67 positions, adding 10 would mean the City would have to keep the staffing level at 77, and if 20 people retire, 20 would have to be hired to replace them. Councilwoman Thurin indicated her concerns about getting into a “minimum manning” issue again. She then moved to call the question. Adopted unanimously. RESOLUTION TO APPLY FOR SAFER GRANT FUNDS Councilman Coleman offered and moved adoption of the following resolution: WHEREAS, The City of Saginaw has an opportunity to apply for a grant from the U.S. Department of Homeland Security pursuant to the Staffing for Adequate Fire and Emergency Response (“SAFER”) program, and WHEREAS, the SAFER grant would provide substantial funding for the City of Saginaw to hire additional firefighters, and WHEREAS, the SAFER grant also requires a long term financial commitment from the City of Saginaw to pay a portion of the cost of these new positions, and requires the City to acknowledge this cost and commit itself to meeting this obligation, and be it RESOLVED, that the Manager is authorized to submit an application to receive these Federal funds for seven firefighter positions at a cost not to exceed $2 million over the five year period of the grant. Adopted unanimously. UNFINISHED BUSINESS Subject: Fiscal Year 2004 / 2005 Budget Amendment Manager’s Recommendation: I recommend approval of the attached resolution that amends the fiscal year 2004-05 Budget. Justification: Since the original adoption of the FY 2004-05 budget, there have
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been changes in estimated revenue and expenditures. Revenue is expected to be lower as a result of City Income Tax reductions resulting from the slow economy. Increased employee benefit and retirement costs have exceeded budget estimates. It will be necessary to use the Budget Stabilization Fund to offset the reduction of revenue and increased benefit and retirement expenditures. With the changes in estimated revenues and expenditures, it is necessary to transfer $1,800,000 from the Budget Stabilization Fund to balance the General Fund Budget. Council Action: This Council Communication is for explanation of the resolution and requires no separate approval. RESOLUTION TO TRANSFER $1,800,000 FROM BUDGET STABILIZATION TO THE GENERAL FUND Councilman Coleman offered and moved adoption of the following resolution: WHEREAS, since the adoption of the Fiscal Year 2004-05 budget, there have been changes in estimated revenue and expenditures; and WHEREAS, revenue declined as a result of City Income Tax reductions resulting from the slow economy; and WHEREAS, increased employee benefit and retirement costs have exceeded budget estimates; and WHEREAS, with the changes in estimated revenues and expenditures, it is necessary to transfer $1,800,000 from the Budget Stabilization Fund to balance the General Fund Budget; now THEREFORE, BE IT RESOLVED, that the budget amendment of the City of Saginaw for fiscal year July 1, 2004 through June 30, 2005, is hereby approved. Adopted unanimously. *** Mayor Ham asked for an update on the City Manager’s contract. Councilman Coleman reported the Attorney was waiting for a response from staff and he hoped the contract would be distributed to Council yet that week and hopefully presented at the next meeting. Mayor Ham then requested an update from the Evaluation Committee. Mayor Protem Cottrell reported all evaluations had been received. She said the committee would meet and open the sealed envelopes and tally up the results. They would then provide a report to Council. Councilman Coulouris brought up the issue of the Council vacancy. He th mentioned if a selection were not made before September 9 the seat would remain vacant. The Mayor instructed the Clerk to take a roll call vote: Councilman O’Neal Councilman Soza Councilwoman Thurin Councilman Coleman Councilwoman Cottrell Earl Jesse Earl Jesse Earl Jesse Harold Evans Harold Evans
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JUNE 27, 2005
Councilman Coulouris Councilman Haynes Mayor Ham The voting continued: Councilman Soza Councilwoman Thurin Councilman Coleman Councilwoman Cottrell Councilman Coulouris Councilman Haynes Councilman O’Neal Mayor Ham Councilwoman Thurin Councilman Coleman Councilwoman Cottrell Councilman Coulouris Councilman Haynes Councilman O’Neal Councilman Soza Mayor Ham Earl Jesse Earl Jesse Harold Evans Harold Evans Harold Evans Earl Jesse Earl Jesse Harold Evans Earl Jesse Harold Evans Harold Evans Harold Evans Earl Jesse Earl Jesse Earl Jesse Harold Evans Harold Evans Earl Jesse Harold Evans
Mayor Ham asked Council members if there was another candidate they would want to nominate or should they start the process over. After some discussion, Councilman Coleman moved to suspend Council Rules and reopen the process to appoint a ninth Council member. Applications would be due in the Clerk’s Office on th July 8, 2005, and disseminated to Council at its meeting of July 11 and the Committee of th the Whole for interviews would be held July 25 . (Mayor Protem Cottrell requested the application include the candidate’s phone number.) Adopted by the following vote: Ayes: Councilpersons O’Neal, Soza, Thurin, Coleman, Haynes and Mayor Ham-6. Nays: Councilpersons Cottrell and Coulouris-2. At 9:23 p.m., Councilwoman Thurin moved to adjourn the meeting. Adopted unanimously.
Diane M. Herman Acting City Clerk