REGULAR MEETING OF THE COUNCIL OF THE CITY OF SAGINAW_ MICHIGAN - Download Now DOC by lonyoo

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									                     MAY 24, 1999                           207

REGULAR MEETING OF THE COUNCIL OF THE CITY OF SAGINAW, MICHIGAN,
HELD MONDAY, MAY 24, 1999 AT 6:30 P.M. IN THE COUNCIL CHAMBER OF
THE CITY HALL.

       Councilwoman Cottrell offered a prayer and led the pledge
of allegiance.

       Mayor Pro Tem Williams called the meeting to order. The
following Councilmembers were present: Cottrell, Dankert,
DeGuise, Ham, Schrems, Seals, Soza, and Mayor Pro Tem Williams -
8.
       Absent: Mayor Loster – 1.

                        ***************
       Attending the Committee of the Whole meeting held at 4:30
p.m. were Councilmembers Cottrell, DeGuise, Ham, and Mayor Pro
Tem Williams who received a tour of the Delphi facility with
members of City Administration.
                        ***************
               CORRECTION AND APPROVAL OF MINUTES
       The minutes of the regular meeting held April 19, 1999
were approved.

                         PUBLIC HEARING
       The Clerk announced this was the time set for a public
hearing on the amended Brownfield Development Plan. Mayor Pro
Tem Williams called three times for comments. No one asked to be
heard.
       Councilwoman Ham moved to declare the hearing closed.
       Adopted unanimously.

                      PERSONAL APPEARANCES
       Mario Soza and Ms. Richardson of the Saginaw Housing
Commission invited Council to the open house at Elmwood Manor to
be held Friday, June 4, 1999.
       Jean Darling and Michael Myers accepted a proclamation
designating May 23 – May 29 as VOICE Week in the City of Saginaw.
       Tomecio V. Hardy, 2621 Kensington Drive, addressed a
prayer and repentance service for the Saginaw community asking
for support and involvement.
       Tom Webb, 3216 Carter Street, commented on the City
Manager’s proposal to Council in support of the budget for
community policing.
       Rev. Robert Gaines, 2420 Montgomery, stated water bill
received by church almost doubled and requested it be reviewed;
graffiti at 802 E. Genesee needs to be taken care of particularly
because it is in the downtown area; and expressed concern over
boom box noise.
       Sister Jan Stobbart, 1708 Delaware, spoke in support of
208                     MAY 24, 1999

Manager’s recommendation regarding budget needs and the
continuation of the community-policing concept.
       Bob Schindehette, Jr., 2326 Stobbe, St., stated he was
before Council on 9/28/98 since that time there have been ongoing
complaints and problems with the legal system that are being
ignored and need to be resolved.

                 PETITIONS AND COMMUNICATIONS
99-16 From M. Randall Jurrens, 4800 Fashion Square Blvd.,
      requesting rezoning of the 2800 block of Montgomery from
      R-1 zone to B-1.
      Referred to the Planning Commission.
99-17 From M. Randall Jurrens, 4800 Fashion Square Blvd.,
      requesting vacation of property abutting Montgomery St.
      located between Hess and Wisner.
      Referred to the Planning Commission.

                   REPORTS FROM CITY MANAGER
From: The City Manager
       On April 30, 1999, the City received bids for two tons of
copper sulfate to be purchased from July 1, 1999 through June 30,
2000. The copper sulfate will be used by the Water Treatment
Plant for treatment of the raw water reservoirs to control
nuisance algae that cause taste and odor problems. The bid price
of $1,180.00 per ton for copper sulfate fine diamond and
$1,220.00 per ton for copper sulfate ¼ shows a decrease of 21%
from last year's cost. Following is a tabulation of the bids
received:

      Chem One Corporation                      $2,400.00
      Houston, TX

      American Internatl. Chemical        2,900.00
      Natick, MA

       The Purchasing Committee has reviewed the bids and I
recommend that the low bid from Chem One Corporation be accepted
and that a purchase order be approved and issued to them in the
amount of $2,400.00.
       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for these chemicals are budgeted in the Water Treat-
ment Operation Account No. 591-4730-861-7302.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
      On April 30, 1999, the City received bids for a free
                     MAY 24, 1999                           209

chlorine analyzer for use at the Water Treatment Plant.     The
instrument is used to perform continuous monitoring of chlorine
residuals in the effluent water stream.     This monitoring is
required under the current Michigan Safe Drinking Water Acts
Surface Water Treatment Rule.     A cost comparison shows an
increase of 3% since the last purchase in 1996. Following is a
tabulation of the bids received:

      Government Scientific            $2,550.50
      Vienna, VA

      Hach Company                      2,592.25
      Loveland, CO

       The Purchasing Committee has reviewed the bids and I
recommend that the low bid from Government Scientific be accepted
and that a purchase order be approved and issued to them in the
amount of $2,550.50.
       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for this equipment are budgeted in the Water
Treatment Operation Account No. 591-4730-861-7309.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       On May 4, 1999, the City received one bid from Facilities
Matrix Group, Saginaw, in the amount of $4,226.40 for office
partitions and a workstation for the Department of Community
Services. This is to complete the office remodeling of the main
administration offices for the Department.
       The Purchasing Committee has reviewed the bid and I
recommend that it be accepted and that a purchase order be
approved and issued to them in the amount of $4,226.40.
       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for this purchase are budgeted in the General Fund
Planning and Zoning Account No. 101-3863-761-7320.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       On March 25, 1999, the City received a price quote from
KAR Laboratory, Inc. to extend their current price for lead and
copper testing through March 2000. This quote will allow the
Water Treatment Plant to complete additional testing needed in
this fiscal year and provide for the necessary testing scheduled
210                     MAY 24, 1999

to begin in July 1999. KAR Laboratory will provide 400 tests for
lead and 400 tests for copper. Following is a tabulation of the
quote received:
                     MAY 24, 1999                                  211

      KAR Laboratory, Inc.                  Lead           $7.50
      Kalamazoo, MI                Copper          $7.49

       I recommend that the quote to extend current pricing be
accepted and that a purchase order be approved and issued to them
in the amount of $5,996.00.
       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for this service are budgeted in the Water Treatment
Operation Account No. 591-4730-861-8005.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       On April 6, 1999, the City received bids for two hundred
hours of grading and bulldozing services for General Services
Department Maintenance and Service Division at the First Street
dump site from July 1, 1999 through June 30, 2000.       A cost
comparison shows a decrease of less than 1% from the previous
year's cost. Following is a tabulation of the bids received:

      Mead Contracting, Inc.                $12,700.00
      Saginaw (Out-City)

      Chippewa Contracting, Inc.             13,600.00
      Saginaw (Out-City)

      Doc Heinz Contracting, Inc.                   14,000.00
      Saginaw (Out-City)

      Bourdow Trucking Co                    15,400.00
      Saginaw (Out-City)

       The Purchasing Committee has reviewed the bids and I
recommend that the low bid from Mead Contracting, Inc., be
accepted and that a purchase order be approved and issued to them
in the amount of $12,700.00.
       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for this service are budgeted in the Water and Sewer
Operation and Maintenance Funds Account Nos. 591-4721-861-8005
($6,350.00) and 590-4821-861-8005 ($6,350.00).
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
      On April 6, 1999, the City received bids for twenty-seven
212                     MAY 24, 1999

hundred (2,700) cubic yards of screened topsoil that is to be
used by the General Services Department Maintenance and Service
Division to restore parkway areas disturbed by water and sewer
repairs from July 1, 1999 through June 30, 2000.        A cost
comparison shows a 5% increase over last year's cost. Following
is a tabulation of the bids received:

      Mead Contracting, Inc.             $18,819.00
      Saginaw (Out-City)

      Warack Trucking                     19,575.00
      Saginaw (Out-City)

      Doc Heinz Contracting, Inc.                19,737.00
      Saginaw (Out-City)

      Bourdow Trucking Co                 19,764.00
      Saginaw (Out-City)

      Chippewa Contracting, Inc.          20,250.00
      Saginaw (Out-City)

       The Purchasing Committee has reviewed the bids and I
recommend that the low bid from Mead Contracting, Inc., be
accepted and that a purchase order be approved and issued to them
in the amount of $18,819.00.
       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for this material are budgeted in the Water and
Sewer Operation and Maintenance Fund Account Nos. 591-4721-861-
7330 ($9,409.50) and 590-4821-861-7330 ($9,409.50).
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       On April 30, 1999, the City received a price quote from
Haviland Products Company of Grand Rapids, Michigan for Calgon
Cat-Floc L for the Water Treatment Plant to be purchased from
July 1, 1999 through June 30, 2000. The quoted price for 63,000
lbs was $0.81/lb. for minimum lots of nine (9) drums (450
lbs./drum). This is the same cost per unit paid in FY-99. This
chemical is being used as a coagulant aid in the water
clarification process, and its use has significantly improved the
finished water quality. Haviland Products Company represents the
manufacturer of this chemical, Calgon Corporation, and is the
only source for this proprietary product.
       I recommend that the price quote from Haviland Products
Company be accepted and that a purchase order be approved and
                    MAY 24, 1999              213

issued to them in the amount of $51,030.00.
214                     MAY 24, 1999

       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for these chemicals are budgeted in the Water
Treatment Operation Account No. 591-4730-861-7302.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       On April 30, 1999, the City received bids for 80 tons of
powdered activated carbon (PAC) to be purchased from July 1, 1999
through June 30, 2000. The PAC will be used by the Division of
Water Treatment to assist in the elimination of organic and
chemical impurities that effect the taste and odor of the water.
Alternate bids were also received for a higher grade of Powdered
Activated Carbon that has been used in previous years. The
higher-grade product has more absorptive capacity and it is
anticipated it will be more effective in actual use. The
alternate bid price of $850.00 per ton delivered shows an
increase of 10% since PAC was purchased last year.   Following is
a tabulation of the bids received:
                                   BASE BID            ALTERNATE
       Acticarb                   $61,472.00            NO BID
       Dunnellon, Fl

      NICHEM Co.                   64,400.00           81,800.00
      Irving, NJ

      Norit Americas, Inc.                 NO BID
      68,000.00
      Atlanta, GA

      Calgon Carbon Corp.          80,000.00           83,200.00
      Pittsburgh, PA

       The Purchasing Committee has reviewed the bids and I
recommend that the low alternate bid from Norit Americas, Inc.,
be accepted and that a purchase order be approved and issued to
them in the amount of $68,000.00.
       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for these chemicals are budgeted in the Water
Treatment Operation Account No. 591-4730-861-7302.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
      On April 6, 1999, the City received bids for General
                       MAY 24, 1999                          215

Services building renovations. Work shall consist of replacing
the existing roof, windows, siding and tuck pointing of the
mortar joints on the exterior walls of the building. The current
roof is leaking causing damage to the interior of the building.
The windows and siding are severely worn and are well beyond
their useful life.     Following is a tabulation of the bids
received:

Serenus Johnson & Son Construction                     $70,850.00
Bay City, MI

Bruno Martin Company                             85,000.00
Saginaw (in-City)

Beyer Roofing Company, Inc.                      44,546.00
Saginaw (out-City)                             (Roof Only)

Cusacks Masonry Restoration, Inc.                      13,450.00
Hubbardston, MI                          (Masonry Work Only)

       Bids from Serenus Johnson & Son Construction and Beyer
Roofing   Company,   Inc.,  did   not   meet   roofing   material
specifications. The nature of this work requires all work to be
done by one contractor, therefore, it is in the best interest of
the City to award the entire bid to one general contractor.
       The Purchasing Committee has reviewed the bids and I
recommend that the bid from Bruno Martin Company in the amount of
$85,000.00 be accepted and that a contract be awarded to them in
this amount; that contract documents forwarded herein (City
Clerk's File A-5899, which have been signed by the contractor, be
approved; and that the proper City officials be authorized and
directed to execute the same on behalf of the City.
       This contract has been approved by me as to substance and
by the City Attorney as to form and execution.
       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for this contract are budgeted in the Water and
Sewer Surplus Funds Account Nos. 577-4740-881-8047 ($42,500.00)
and 576-4840-881-8047 ($42,500.00).
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       On April 27, 1999, the City received bids for the supply
and delivery of 60 tons of sodium silicofluoride for the Water
Treatment Plant for drinking water fluoridation from July 1, 1999
through June 30, 2000. Fluoride is used in the treatment process
to aid in the prevention of dental caries. The cost of $477.40
216                     MAY 24, 1999

per ton shows an increase of 1% from last year's cost.   Following
is a tabulation of the bids received:
                     MAY 24, 1999                             217

      Kaiser Aluminum & Chemical Corp.          $28,644.00
      Mulberry, FL

      Lucier Chemical Industries                 28,800.00
      Jacksonville, FL

       The Purchasing Committee has reviewed the bids and I
recommend that the low bid from Kaiser Aluminum & Chemical Corp.
be accepted and that a purchase order be approved and issued to
them in the amount of $28,644.00.
       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for these chemicals are budgeted in the Water
Treatment Operation Account No. 591-4730-861-7302.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       On April 27, 1999, the City received bids for the
construction of a pedestrian overpass over Franklin Street,
between Parking Ramp No. 1 and the Spicer Group Building located
at 201 Janes Street. The Michigan Strategic Fund has pledged to
pay   $275,000.00 for the construction of this overpass.      In
exchange, the Spicer Group has agreed to create twenty (20) full
time equivalent jobs within two years of the first disbursement
of funds for this project. Following is a tabulation of the bids
received:

      R.C. Hendrick & Son, Inc.                 $177,000.00
      Saginaw (out-city)

      *Wobig Construction Co., Inc.              210,012.00
      Saginaw (in-city)

      J.R. Heineman & Sons, Inc.                        247,475.00
      Saginaw (in-city)

      Wolgast Corporation                        266,412.00
      Saginaw (out-city)

      Gerace Construction Co., Inc.              276,000.00
      Midland, MI

       *Certified, Saginaw Based, Small Business

       The Purchasing Committee has reviewed the bids and I
recommend that the low bid from R. C. Hendrick & Son, Inc., in
the amount of $177,000.00 be accepted and that a contract be
218                     MAY 24, 1999

awarded to them in this amount; that contract documents forwarded
herein (City Clerk's File A-5600), which have been signed by the
contractor, be approved; and that the proper City officials be
authorized and directed to execute the same on behalf of the
City.
       This contract is subject to approval by the City Manager
and the City Attorney.
       This vendor meets all requirements of Contract compliance
Ordinance D-1315.
       Funds for this contract are available in the Capital
Projects Fund Account No. 401-9010-901-9731.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       On April 27, 1999, the City received bids for the
resurfacing of streets in Block Grant Project Areas totaling
approximately 0.94 miles.       The work also includes the
construction of ADA complaint sidewalk ramps. Following is a
tabulation of the bids received:

      A. J. Rehmus & Son, Inc.                  $388,992.15
      Bay City, MI

      Bourdow Trucking Co.                409,746.45
      Saginaw (out-City)

      Pyramid Paving Co.                  414,724.95
      Essexville, MI

      Lois Kay Contracting                       418,353.20
      Saginaw (out-City)

      Valley Asphalt Co., Inc.            453,636.17
      Saginaw (out-City)

       The Purchasing Committee has reviewed the bids and I
recommend that the low bid from A. J. Rehmus & Son, Inc., in the
amount of $388,992.15 be accepted and that a contract be awarded
to them in this amount; that contract documents forwarded herein
(City Clerk's File A-5901), which have been signed by the
contractor, be approved; and that the proper City officials be
authorized and directed to execute the same on behalf of the
City.
       This contract has been approved by me as to substance and
by the City Attorney as to form and execution.
       This vendor meets all requirements of Contract compliance
Ordinance D-1315.
                     MAY 24, 1999                           219

       Funds for this contract are available in the following
accounts: Community Development Block Grant Fund Account No. 275-
6511-761-8046 ($190,000.00), Major Street Fund Account No. 202-
4613-781-8046 ($25,000.00), Local Street Fund Account No. 203-
4613-781-8046 ($129,742.15) and Sewer Surplus Fund Account No.
576-4840-881-8047 ($45,250.00).
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       Transmitted herewith is a Funding Approval Agreement (City
Clerk's File No. A-5902) with the Department of Housing and Urban
Development for a $375,000 Section 108 Loan. The original 108
application was approved by City Council on January 26, 1998.
       The original loan application was designed to use the 108
loan proceeds to help renovate a building for a small business
incubator project.    The incubator project will not be moving
forward, but we want to preserve the 108 funds and use them for
the Gratiot streetscape project.
       In January 1999, an amendment was submitted to HUD to
change the use of funds from the incubator to the Gratiot
streetscape. HUD requested additional information thereafter.
Now they are ready to approve the change in fund usage.
       The 108 loan will be repaid over a six year period from
CDBG entitlement funds. The first three years require interest
only payments, while the last years include principal and
interest to payoff the loan.
       The total Gratiot streetscape budget is $555,000.       On
February 8, 1999, Council allocated $180,000 in CDBG funds to the
project. The subject $375,000 108 loan will provide the balance
of funds needed to carry out the project.
       The Funding Agreement has been approved by me as to
substance and the City Attorney as to form.
       It is recommended that the City Council authorize the
proper City officials to execute this Funding Agreement and take
all actions necessary to obtain the 108 loan.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       On November 25, 1996, City Council accepted the quality
based selection of Spicer Engineering (name since changed to
Spicer Group) and approved a contract to them to perform
engineering services on an annual basis.      This service is
necessary to support city engineering staff and provide
specialized services during peak work periods so that projects
220                     MAY 24, 1999

may be delivered in a timely manner. Since then, Spicer Group
has performed well and is available to continue said services for
the next fiscal year.       The Engineering Administrator has
evaluated the future list of projects and requests that
$450,000.00 be approved for as-needed engineering services though
June 30, 2000. Major projects that will require special services
of Spicer Group include design and construction engineering for
Holland Avenue Bridge reconstruction, currently scheduled for the
1999-2000 construction season; and watermain and sewer
improvements in the downtown area.
       It is recommended that City Council approve the
engineering services contract with Spicer Group for the year July
1, 1999 through June 30, 2000 which will serve as the basis for
the terms and conditions of all work performed under this
purchase order. This contract has been approved by the City
Manager as to substance and the City Attorney as to form.
       I recommend that the proper City officials be authorized
to approve and issue individual purchase orders of varying
amounts up to the authorized amount of $450,000.00 from July 1,
1999 through June 30, 2000.
       This vendor meets all requirements of Contract compliance
Ordinance D-1315.
       Funds for this service are budgeted in various Capital
Improvement Funds and departmental budgets.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       Transmitted herewith for Council approval is a contract
between   the   City  of   Saginaw   and   B.A.S.I.C.   (Benefit
Administrative Services International Corporation) of Portage,
MI, to provide third party administration of City of Saginaw
employee benefits required of the federal Consolidated Omnibus
Budget Reconciliation Act of 1985 (COBRA). COBRA requires the
City to provide a temporary extension (normally 18 months) of
health, dental, and vision insurance to employees, their spouses
and, in some cases, dependents, when the employee leaves City
employment for other than retirement purposes. The employee must
pay the monthly insurance premiums to the City, based on City
insurance rates.     The process of administering COBRA is
cumbersome and time consuming. Federal regulations constantly
are changing and the City’s ability to keep up requires legal
assistance.   From a cost-benefit standpoint, it is a logical
business decision to go to a third party administrator.
       The rates listed in the B.A.S.I.C. contract are such that
an assumable 100 individuals (the extreme situation) receiving
benefits, would cost approximately $3,500 for one year. This is
an open-ended contract for services supplied through Saginaw Bay
                     MAY 24, 1999                           221

Underwriters with a 60 day termination notice by either party.
       There are only two firms in the state who would supply
third party administration COBRA benefits for the City if
Saginaw. The other firm is COBRA Compliance of Coldwater, MI,
which does not provide all the services required of the City
program.   B.A.S.I.C. meets all the requirements of the Contract
Compliance Ordinance D-1315. The effective date of the contracted
services is July 1, 1999.
       This contract has been approved by the City Manager as to
substance and the City Attorney as to form.
       Funds for this service contract are available in the
Employee Services account #101-1725-701-80-01.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       The encroachment ordinance is being amended to permit the
chief inspector to approve all encroachment permits which
currently must be approved by City Council. The intent is to
reduce the amount of time necessary to gain approval for street
encroachments. The Chief Inspector under this ordinance change
may still call upon the City Council for approval if the
encroachment is one that he feels should be considered by the
City Council.
       In addition, the ordinance change requires that the holder
of an encroachment permit provide proof of a valid liability
insurance policy in an appropriate amount. This proof must be
provided both upon application for a new encroachment permit and
upon renewal of existing encroachment licenses.
       The fees for new encroachments and renewals will be
increased from $5.00 to $10.00 every three years.
          I recommend that Chapter 2 Article 17 be amended to
provide for the necessary changes.       An ordinance has been
prepared and appears under the regular order of business.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       The   Building   Inspections   Division   has   received
applications for encroachment permits for underground sprinkler
systems at the following locations:

      Robert Young - 1741 Avon Street
      Mid Michigan Veterinary Clinic - 3304 Davenport Avenue
      Public Libraries of Saginaw - 300 S. Warren Avenue.
      Papa Johns Pizza - 1910 Court Street
222                     MAY 24, 1999

       The systems are located in the street right of way, either
between the sidewalk and the curb or in the 3 strips between the
sidewalk and property line.
       The Encroachment permit chapter of the General Code is
being amended to allow the Chief Building Inspector to approve
these types of encroachments in the future.
       I recommend approval of the encroachment permits for the
underground sprinkler systems at those locations subject to the
property owners providing a copy of their liability property
insurance policy which is acceptable to the City Attorney.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       On May 18, 1998, City Council approved a purchase order to
Kaiser Aluminum & Chemical Corporation, Mulberry, Fl., in the
amount of $18,960.00 for sodium silicofluoride to be used at the
Water Treatment Plant during FY-99. This chemical is used in the
treatment process to aid in the prevention of dental cavities.
Greater than projected water use has exhausted our supply of 40
tons. This supplier has agreed to extend their bid price of
$474.00 per ton for 20 additional tons needed through June 30,
1999.
       I recommend that the original purchase order to Kaiser
Aluminum & Chemical Corporation be increased in the amount of
$9,480.00 for these additional chemicals.
       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for these chemicals are budgeted in the Water Treat-
ment Operation Account No. 591-4730-861-7302.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       On April 28, 1998, City Council approved a purchase order
in the amount of $55,016.00 to Global Stone Detroit Lime for 800
tons of calcium oxide for the Wastewater Treatment Plant. These
funds have been expended. Approximately 200 tons will be needed
between now and June 30, 1999.
       I recommend that the original purchase order issued to
Global Stone Detroit Lime be increased $13,754.00 to $68,770.00
to cover the cost of the additional calcium oxide needed.
       This vendor meets all the requirements of Contract
Compliance Ordinance D-1315.
       Funds for these chemicals are budgeted in the Wastewater
Treatment Operations Account No. 590-4830-861-7302.
                     MAY 24, 1999                           223

       Councilwoman Ham 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 were considered after
discussion.
224                     MAY 24, 1999

From: The City Manager
       On March 30, 1999, the City received one bid from Wobig
Construction Co., Inc., Saginaw (in-city) in the amount of
$11,661.00 for a new sign at the Andersen Enrichment Center. The
Enrichment Center does not have a sign to identify its location
and would signify the Enrichment Center’s presence in the
Celebration Square District.
       The Purchasing Committee has reviewed the bid and I
recommend that the bid from Wobig Construction Co., Inc., in the
amount of $11,661.00 be accepted and that a contract be awarded
to them in this amount; that contract documents forwarded herein
(City Clerk’s File A-5898, which have been signed by the
contractor, be approved; and that the proper City officials be
authorized and directed to execute the same on behalf of the
City.
       This contract has been approved by me as to substance and
by the City Attorney as to form and execution.
       This vendor meets all requirements of Contract Compliance
Ordinance D-1315.
       Funds for this sign are budgeted in the Andersen
Enrichment Center Operation Fund Account No. 236-7532-801-9720
and is funded by a grant from the Andersen Foundation.
       Councilwoman Ham moved that the recommendation of the City
Manager be approved.
       Adopted unanimously.

From: The City Manager
       This communication summarizes the budget related matters
on tonight's agenda.
       Trust Funds:    The Trust Fund Resolutions provide for
appropriation from the expendable funds of the appropriate trust
funds during Fiscal Year 2000.
       Budget Resolution: The Budget Resolution summarizes the
City Manager's proposed budget.    The City Manager’s proposed
budget was presented to Council on Tuesday, May 11, 1999. Since
that meeting, the City Manager has revised the original proposal
to include the following:

      An increase of $400,000 of General Fund Operating
      Transfers.
      An increase in Community Policing Fund, General Fund Local
      Match of $400,000.
      An increase in General Fund revenue of $400,000 and a
      decrease in General Fund Undesignated Fund Balance of
      $400,000.
      An increase to the City complement of eight non-general
      fund Police Officers. This would increase the total sworn
      Police Officers from 145 to 153.
      Removal of the Fleet Manager position in the Garage
                    MAY 24, 1999                           225

      Operation Fund from the City complement.

       The revisions listed above will increase the overall City
Complement from 643 to 650.
       Councilman Schrems moved that the recommendation of the
City Manager be received and filed.
       Adopted unanimously.

                    REPORTS FROM COMMITTEES
       Councilwoman Seals spoke on the Neighborhood Renewal
Services meeting; visitors from Washington, D.C. who addressed
as viewed by them a trend that we are turning the corner and
 looked at the City of Buffalo, N.Y. as a model for absentee
landlords.
       Mayor Pro Tem Williams inquired on anticipated
completion date of playgrounds being renovated in order to
give a report to City/County/School Liaison Committee.

                   INTRODUCTION OF ORDINANCES
       Councilwoman Seals introduced an ordinance entitled and
reading as follows:

      AN ORDINANCE TO AMEND THE GENERAL CODE,
      ORDINANCE NO. D-2, CHAPTER 2, ARTICLE 17 STREET
      ENCROACHMENTS.

      Laid over under the charter provision.

                         RESOLUTIONS
       Councilwoman Seals offered and moved adoption of the
following resolution:

            Resolution to Adopt the FY 2000 Budget
                    and Property Tax Levy

       WHEREAS, The taxable value of real and personal property
in the City has been determined to be $660,698,456 being 16.5739
% of the December 31, 1998 taxable value of property in Saginaw
County, now, therefore, be it
       RESOLVED, That the budget of the City of Saginaw for the
fiscal year beginning July 1, 1999, is hereby determined and
adopted as follows:

                  FINANCIAL SUMMARY ALL FUNDS
                        FISCAL YEAR 2000

PUBLIC WORKS BUILDING OPERATION FUND
 Means of Financing:
  Building Rents           $    246,599
226   MAY 24, 1999

                     $     246,599
                         =========
                       MAY 24, 1999                                 227

 Estimated Requirements:
  Personal Services        $      63,713
  Operating Services                    132,387
  Supplies and Materials          14,599
  Capital Outlay                  35,900
                                                    $     246,599
                                                        =========
CENTRAL STORES FUND
 Means of Financing:
  Sales of Materials
   and Services            $     355,984
                                                    $     355,984
                                                        =========
 Estimated Requirements:
  Personal Services        $      21,124
  Operating Services                       30,100
  Internal Service Charges         6,860
  Supplies and Materials          14,400
  Capital Outlay                  33,500
  Inventory Purchases            250,000
                                                    $     355,984
                                                        =========
GARAGE OPERATION FUND
 Means of Financing:
  Equipment Rentals        $   1,955,164
  Sale of Materials
   and Services                   50,000
  Surplus Receipts                   200
                                                    $   2,005,364
                                                        =========
 Estimated Requirements:
  Personal Services        $     732,598
  Operating Services                    162,431
  Internal Service Charges       168,435
  Supplies and Materials         241,900
  Capital Outlay                 700,000
                                                    $ 2,005,364
                                                      =========

INFORMATION MANAGEMENT SERVICES FUND
 Means of Financing:
  Charges to Other Funds   $   2,400,000
                                                    $ 2,400,000
                                                      =========
 Estimated Requirements:
  Personal Services        $     599,949
  Operating Services                    433,466
  Internal Service Charges       105,400
  Supplies and Materials         100,561
228                     MAY 24, 1999

 Capital Outlay                   110,624
 Installment Contract
  Payments                      1,050,000
                                                    $ 2,400,000
                                                      =========
INSURANCE FUND
 Means of Financing:
  Premium Charges to
   Other Funds              $     890,525
  Interest on Investments          30,000
  Transfer from General
   Fund                           200,000
                                                    $ 1,120,525
                                                      =========
 Estimated Requirements:
  Insurance Premiums                $    712,000
  Claims and Judgments            200,000
  Operating Services              125,000
  Judgment Bond Payments           78,525
  Bank Service Fees                 5,000
                                                    $ 1,120,525
                                                      =========

WORKERS COMPENSATION FUND
 Means of Financing:
  Premium Charges to
   Other Funds              $ 1,327,600
  Transfer from
   General Fund                  300,000
  Reimbursements from
   State of Michigan                       14,815

                                                    $ 1,642,415
                                                      =========
Estimated Requirements:
 Workers Compensation
   Payments                 $    535,000
  Personal Services               52,259
  Operating Services                    430,581
  Claims and Judgments           150,000
  Supplies and Materials          14,575
  Long-term Accrued
   Liabilities                   460,000
                                                    $ 1,642,415
                                                      =========
RADIO OPERATION FUND
 Means of Financing:
  Radio Rentals             $    196,451
                                                    $   196,451
MAY 24, 1999               229

               =========
230                     MAY 24, 1999

 Estimated Requirements:
  Personal Services        $      78,116
  Operating Services                       42,325
  Internal Service Charges         6,040
  Supplies and Materials          30,970
  Capital Outlay                   4,000
  Transfer to Equipment
   Reserve                         35,000
                                                    $     196,451
                                                        =========
WATER OPERATION AND MAINTENANCE FUND
 Means of Financing:
  Sale of Water            $ 10,551,963
  Interest on Investments       250,000
  Penalties on Water
   Accounts                     150,000
  Sale of Materials
   and Services                  65,000
  Sale of Water Connections             15,000
  Turn-on Charges                10,000
  Interest on Special
   Assessments                      600
  Surplus Receipts                  500
                                                    $11,043,063
                                                     ==========
 Estimated Requirements:
  Personal Services        $ 3,383,548
  Operating Services                1,285,649
  Internal Service Charges     699,245
  Supplies and Materials     1,065,343
  Capital Outlay                74,380
  Purchase of Raw Water        940,000
  Transfer to Water
   Surplus Fund              1,200,000
  Debt Service               2,394,898
                                                    $11,043,063
                                                     ==========


WATER SURPLUS FUND
 Means of Financing:
  Water Revenue Bond
   Proceeds                 $     740,000
  Transfer from Water
   Operations Fund              1,200,000
  Transfer from Capital
   Reserve Fund                 1,750,000
  Interest on Investments          50,000
                                                    $ 3,740,000
                       MAY 24, 1999                               231

                                                     =========

 Estimated Requirements:
  Bond Construction
   Projects                 $     740,000
  FY 2000 Capital Program       3,000,000
                                                   $ 3,740,000
                                                     =========

SEWER OPERATION AND MAINTENANCE FUND
 Means of Financing:
  Sale of Sewer Services   $ 11,437,714
  Penalties on Sewer
   Accounts                     100,000
  Sale of Materials
   and Services                  20,000
  Sale of Sewer Connections             20,000
  Special Assessments             3,000
  Transfer from
   Sewer Surplus Fund         2,250,000
                                                   $13,830,714
                                                     ==========
 Estimated Requirements:
  Personal Services        $    5,198,338
  Operating Services                   1,799,441
  Internal Service Charges        882,525
  Supplies and Materials          952,637
  Capital Outlay                  462,380
  Debt Service                  4,535,393
                                                   $13,830,714
                                                    ==========
SEWER SURPLUS FUND
 Means of Financing:
  Transfer from Capital
   Reserve Fund             $   6,517,650
  Interest on Investments         600,000
                                                   $ 7,117,650
                                                    ==========
 Estimated Requirements:
  FY 2000 Capital Program   $   4,867,650
  Transfer to Sewer
   Operations Fund              2,250,000
                                                   $ 7,117,650
                                                    ==========
DEBT SERVICE FUND
 Means of Financing:
232                       MAY 24, 1999

  Transfer from Debt
   Service Reserve Fund     $   526,250
  Delta College
   Rent Payments                175,489
                                                   $     701,739
                                                       =========
 Estimated Requirements:
  Debt Service              $   691,739
  Indirect Costs                  5,000
  Delinquent Taxes                2,000
  Paying Agent Fees               3,000
                                                   $     701,739
                                                       =========

PARKING OPERATION AND MAINTENANCE FUND
 Means of Financing:
  Parking Lot Receipts     $    200,000
  Ramp No. 1 Receipts            78,587
  Ramp No. 2 Receipts           280,000
                                                   $     558,587
                                                       =========
 Estimated Requirements:
  Personal Services        $    255,160
  Operating Services                   250,377
  Internal Service Charges       36,270
  Supplies and Materials         16,780

                                                   $     558,587
                                                       =========
BOAT LAUNCH OPERATION FUND
 Means of Financing:
  Boat Launch Fees         $     24,742
                                                   $      24,742
                                                        ========
 Estimated Requirements:
  Personal Services         $     4,292
  Operating Services                      19,450
  Supplies and Materials          1,000
                                                   $      24,742
                                                        ========

WAVE POOL OPERATION AND MAINTENANCE FUND
 Means of Financing:
  Admission Fees           $    160,000
  Tubes and Chairs
   Rental Fees                   60,000
  Concessions                    57,000
  Novelties                         721
  Transfer from General
                       MAY 24, 1999                               233

   Fund                        150,000
                                                  $     427,721
                                                      =========
 Estimated Requirements:
  Personal Services        $   174,076
  Operating Services                  102,960
  Internal Service Charges         200
  Supplies and Materials        43,940
  Capital Outlay                20,000
  Debt Service                  86,545
                                                  $     427,721
                                                      =========

COMMUNITY POLICING FUND
 Means of Financing:
  Block Grant Local Match $    310,200
  General Fund Local Match     577,085
                                                  $     887,285
                                                      =========
 Estimated Requirements:
  Personal Services        $   857,875
  Operating Services                     25,410
  Supplies and Materials         4,000
                                                  $     887,285
                                                      =========
LAW ENFORCEMENT GRANT FUNDS
 Means of Financing:
  Local Law Enforcement
   Grant                   $   421,606
  Automobile Theft              61,115
  Daniel Heights Grant          79,362
  P.A. 302 State Training
   Funds                        25,000
  Youth Initiative Grant       103,377
  Juvenile Intervention
   Grant                        64,164
  General Fund Local Match     104,624
                                                  $     859,248
                                                      =========
 Estimated Requirements:
  Personal Services        $   566,853
  Operating Services                     60,745
  Supplies and Materials        11,650
  Capital Outlay               200,000
                                                  $     859,248
                                                      =========
DRUG FORFEITURE FUND
 Means of Financing:
234                     MAY 24, 1999

  Forfeitures               $      47,800
  Interest on Investments          10,000
                                                     $      57,800
                                                         =========
 Estimated Requirements:
  Operating Services               $     53,700
  Supplies and Materials           4,100
                                                     $      57,800
                                                         =========

ANDERSEN ENRICHMENT CENTER OPERATION FUND
 Means of Financing:
  Grants and Donations     $     75,000
  Building Rentals               56,977
  Transfer from General
   Fund                          35,000
                                                     $     166,977
                                                         =========
 Estimated Requirements:
  Personal Services         $      38,292
  Operating Services                        48,085
  Supplies and Materials            5,600
  Enrichment Commission
   Expenses                        75,000
                                                     $     166,977
                                                         =========

RUBBISH COLLECTION FUND
 Means of Financing:
  Property Taxes            $   1,503,089
  Household Rubbish Fees        1,200,000
  Composting Fees                 100,000
  Special Assessments              50,000
  Sale of Materials
   and Services                    50,000
  Penalties on Household
   Rubbish Fees                     9,651
                                                     $ 2,912,740
                                                      ==========
 Estimated Requirements:
  Personal Services        $      934,499
  Operating Services                   1,005,504
  Internal Service Charges        521,475
  Supplies and Materials           37,300
  Transfer to Fund Balance         25,000
  Debt Service                    388,962
                                                     $ 2,912,740
                                                      ==========
                    MAY 24, 1999                                   235

COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
 Means of Financing:
  Contributions From
   Federal Government      $ 4,512,000
  Program Income              1,257,768
  Reprogrammable Funds          628,550
                                                   $ 6,398,318
                                                     =========
 Estimated Requirements:
  Housing Programs          $   3,505,813
  Public Improvements             729,000
  Economic Development          1,012,411
  Public Services                 762,000
  Program Administration          389,094
                                                   $ 6,398,318
                                                     =========

MAJOR STREETS FUND
 Means of Financing:
  Gas and Weight Taxes      $   3,300,000
  State Trunkline
   Maintenance                    250,000
  Interest on Investments         155,713
  Sale of Materials
   and Services                    50,000
  Transfer from Fund
   Balance                        660,000
                                                   $ 4,415,713
                                                     =========
 Estimated Requirements:
  Personal Services        $    1,319,662
  Operating Services                     213,745
  Internal Service Charges        779,306
  Supplies and Materials          410,500
  Capital Outlay                   60,500
  Resurfacing/Bridge
   Projects                     1,532,000
  Transfer to Local
   Street Fund                    100,000
                                                   $ 4,415,713
                                                    ==========
LOCAL STREETS FUND
 Means of Financing:
  Gas and Weight Taxes      $     824,977
  Transfer from Major
   Street Fund                    100,000
  Interest on Investments          20,000
                                                   $     944,977
                                                       =========
236                     MAY 24, 1999

 Estimated Requirements:
  Personal Services        $      432,139
  Operating Services                        33,879
  Internal Service Charges        345,459
  Supplies and Materials          133,500
                                                     $     944,977
                                                         =========
POLICE AND FIRE PENSION FUND
 Means of Financing:
  Employer Pension
   Contributions           $    3,651,915
  Employee Pension
   Contributions                  950,000
  Interest on Investments       3,000,000
  Dividends                       900,000
  Gain on Sale of
   Investments                  5,150,000
                                                     $13,651,915
                                                      ==========
 Estimated Requirements:
  Pension Benefits          $   8,000,000
  Personal Services                22,815
  Operating Services                     528,600
  Pension Contribution
   Refunds                        100,000
  Supplies and Materials              500
  Transfer to Retained
   Earnings                     5,000,000
                                                     $13,651,915
                                                      ==========

EXPENDABLE TRUST FUNDS
 Means of Financing:
  Interest on Investments   $      10,350
                                                     $      10,350
                                                         =========
 Estimated Requirements:
  Operating Services                $       8,600
  Supplies and Materials           1,750
                                                     $      10,350
                                                         =========


       RESOLVED FURTHER, that there is hereby appropriated for
said fiscal year the amounts set forth in the following tabula-
tions which, pursuant to the "Uniform Budgeting and Accounting
Act" (M.C.L.A. 141.421 et. seq.) and the City's Chart of Accounts
defines all other distinct and separate funds as follows:
                      MAY 24, 1999                           237

                      ESTIMATED REQUIREMENTS

General Fund

General Government                             $ 2,236,198
Fiscal Services                                  1,648,064
Police                                          13,418,664
Fire                                             8,395,823
Community Services                               3,625,553
General Services                                 4,465,839
Other Expenditures*                              3,626,459

      Subtotal General Fund                    $37,416,600

Other Funds

Water Operations Fund                          $11,043,063
Water Surplus Fund                               3,740,000
Sewer Operations Fund                           13,830,714
Sewer Surplus Fund                               7,117,650
Debt Service Fund                                  701,739
Parking Operations Fund                            558,587
Boat Launch Operations Fund                               24,742
Wave Pool Fund                                     427,721
Community Policing Fund                            887,285
Law Enforcement Training Fund                      859,248
Drug Forfeiture Fund                                      57,800
Andersen Enrichment Center Operations Fund         166,977
Rubbish Collection Fund                          2,912,740
Major Streets Fund                               4,415,713
Local Streets Fund                                 944,977
Police and Fire Pension Fund                    13,651,915
Expendable Trust Funds                              10,350

     Subtotal Other Funds                      $61,351,221

              Total General and Other Funds    $98,767,821

*Includes Summer Food Program, Unemployment       Compensation,
Operating Transfers and Contributions.

       RESOLVED FURTHER, that these estimated requirements are
hereby financed as follows:
238                      MAY 24, 1999

                       MEANS OF FINANCING

Property Tax                                                     $ 5,655,589
City Income Tax                                                   14,600,000
State Shared Revenues                                             16,939,977
Fees, Rents and Privileges, and Sales of
  Commodities and Services                                        27,749,793
Fines, Penalties, Grants, Donations and
  Reimbursements                                                   3,588,275
Interest Income                                                   10,621,663
Water Revenue Bond                                                   740,000
Pension Contributions                                              4,601,915
Unrestricted Fund Balances                                        14,270,609
                                                                 $98,767,821


       RESOLVED FURTHER, that the City Manager is hereby
empowered to transfer appropriations within appropriation
centers; and
       RESOLVED FURTHER, that there is hereby levied a general
tax as herein fixed in the amount of 2.2750 mills on each dollar
of taxable value for the purpose of rubbish collection pursuant
to Michigan Public Act 298 of 1917, and in the amount of 5.7950
mills on each dollar of taxable value for the purpose of meeting
all other municipal requirements for said fiscal year, said levy
to be applied on all the taxable real and personal property in
the City of Saginaw as set forth in the assessment roll for 1999
and
       RESOLVED FURTHER, that the City Treasurer be authorized
and directed to accept payment of taxes and special assessments
due July 1, 1999 without additional charge up to and including
July 31, 1999 provided that after said thirty-first day of July,
1999 there shall be added one-half of one percent for each and
every month, or fraction thereof, plus an additional one-half
percent collection fee to taxes and special assessments remaining
unpaid, as required by Section 60 of the City Charter; and
       RESOLVED FURTHER, that the City Treasurer be authorized
and directed to accept partial payment of taxes and special
assessments in four or less equal installments for a period not
extending beyond March 1, 2000 with interest as follows:

      To   July payments add . . .   .   .   .   .   .   .   .   .   .       0%
      To   August payments add . .   .   .   .   .   .   .   .   .   .       1%
      To   September payments add.   .   .   .   .   .   .   .   .   .   1 1/2%
      To   October payments add. .   .   .   .   .   .   .   .   .   .       2%
      To   November payments add .   .   .   .   .   .   .   .   .   .   2 1/2%
      To   December payments add .   .   .   .   .   .   .   .   .   .       3%
      To   January payments add. .   .   .   .   .   .   .   .   .   .   3 1/2%
      To   February payments add .   .   .   .   .   .   .   .   .   .       4%
                     MAY 24, 1999                           239


       RESOLVED FURTHER, that the FY 2000 General Fund Budget be
automatically amended on July 1 to reappropriate encumbrances
outstanding and reserved at June 30, 1999, and capital
allocations as determined appropriate by the Controller; and
       RESOLVED FURTHER, that the Personnel Complement be amended
to incorporate those changes contained in the Fiscal Year 2000
Budget.
       RESOLVED FURTHER, that the City Manager be authorized to
adjust the pay compensation levels for City employees restricted
within the applicable pay range as authorized by the City
Council.
       Adopted unanimously.

                        BOND RESOLUTION

                 Limited Tax General Obligation
          Sewage Disposal System Bonds, Series 1999-A

       WHEREAS, pursuant to Permit No. MI0025577 issued by the
Michigan Department of Natural Resources on July 20, 1995 (the
"Permit"), it is necessary for the City of Saginaw (the "City")
to construct the combined sewer overflow ("CSO") facilities
described below to provide for the effective operation of the
sewage disposal system of the City; and
       WHEREAS, pursuant to Act 451, Public Acts of Michigan,
1994, as amended ("Act 451"), the City is authorized to issue its
bonds to provide funds for the acquisition and construction of
the Salt/Fraser District CSO Retention Treatment Basin Addition
and Collector Sewer Project and the Hancock Street Retention
Treatment Basin Parking Deck Structure Restoration Project (the
“Project”) as more fully described in and required by the Permit,
which bonds shall be full faith and credit obligations of the
City; and
       WHEREAS, the City wishes to issue its bonds in one or more
series pursuant to Act 451 to defray the cost of acquiring and
constructing the Project and to sell the Series 1999-A Bonds in a
private negotiated sale to the Michigan Municipal Bond Authority
(the "Authority") as authorized by Act 227, Public Acts of
Michigan, 1985, as amended ("Act 227"), in order to enable the
Authority to provide assistance with respect to the Project from
the proceeds of the State Water Pollution Control Revolving Fund.
       THEREFORE, BE IT RESOLVED by the City Council, City of
Saginaw, Saginaw County, Michigan, as follows:
       1.     AUTHORIZATION OF BONDS – PURPOSE.     Bonds of the
City aggregating the principal sum not to exceed Twenty-Five
Million Dollars ($25,000,000) shall be issued and sold pursuant
to the provisions of Act 451, and other applicable statutory
provisions, for the purpose of defraying the cost of acquiring
240                     MAY 24, 1999

and constructing the Project.
       2.     BOND DETAILS.     The bonds shall be designated
"Limited Tax General Obligation Sewage Disposal System Bonds,
Series 1999-A"; shall be dated as of such date as shall be
approved by the City Manager at the time of sale; shall be
numbered from 1 upwards; shall be fully registered; shall be in
the denomination of $5,000 each or any integral multiple thereof
not exceeding the aggregate principal amount for each maturity at
the option of the bondholder (provided, however, that so long as
the bonds are registered in the name of the Authority, the bonds
may be in the form of a single bond in the denomination of
$25,000,000, or such lower amount as shall be approved by the
City Manager, with an exhibit attached thereto which identifies
the annual maturities for the bonds, and the references herein to
"bonds" shall mean that single bond registered in the name of the
Authority); shall bear interest at the rate of not to exceed 8%
per annum from the date of delivery of the various principal
installments as hereinafter described, payable on such dates as
shall be determined by the City Manager at the time of sale; and
shall mature on such dates and in such years as shall be
determined by the City Manager at the time of sale.
       The bonds are expected to be delivered to the Authority as
the   initial    purchaser   thereof    in   installments    (the
"Installments") equal to the amounts advanced from time to time
by the Authority to the City pursuant to the Purchase Contract
and the Supplemental Agreement (each as hereinafter defined).
       3.     PAYMENT OF PRINCIPAL AND INTEREST. The principal
of and interest on the bonds shall be payable in lawful money of
the United States. So long as the bonds are registered in the
name of the Authority, the bonds are payable as to principal,
redemption premium, if any, and interest at NBD Bank, Detroit,
Michigan, or at such other place as shall be designated in
writing to the City by the Authority (the "Authority's
Depository").   So long as the Authority is the owner of the
bonds, the City agrees that it will deposit with the Authority's
Depository payments of the principal of, premium, if any, and
interest on the bonds in immediately available funds at least
five business days prior to the date on which any such payment is
due, whether by maturity, redemption or otherwise. If the bonds
are not registered in the name of the Authority, the principal of
and premium, if any, on the bonds are payable upon surrender
thereof at the office of the bond registrar and paying agent and
the interest is payable by check or draft mailed by the bond
registrar and paying agent to the registered owner of the bonds
at the address appearing on the registration books of the City
kept by the bond registrar and paying agent as of the 15th day of
the month preceding the month in which an interest payment is
due.
       4.     PRIOR REDEMPTION. The bonds shall be subject to
                     MAY 24, 1999                           241

redemption prior to maturity upon the terms and conditions set
forth in the form of bond contained in paragraph 8 hereof.
       5.     BOND REGISTRAR AND PAYING AGENT. Until a successor
is appointed by the City Manager, the City Treasurer shall act as
bond registrar and paying agent for the bonds.
       6.     EXECUTION, AUTHENTICATION AND DELIVERY OF BONDS.
The bonds shall be executed in the name of the City by the manual
or facsimile signatures of the Mayor and the City Clerk and
authenticated by the manual signature of an authorized
representative of the bond registrar and paying agent, and the
seal of the City (or a facsimile thereof) shall be impressed or
imprinted on the bonds. After the bonds have been executed and
authenticated for delivery to the Authority as the initial
purchaser thereof, they shall be delivered by the City Treasurer
to the purchaser upon compliance with the terms and conditions of
the Purchase Contract. Additional bonds bearing the facsimile
signatures of the Mayor and the City Clerk and upon which the
seal of the City (or a facsimile thereof) is impressed or
imprinted may be delivered to the bond registrar and paying agent
for authentication and delivery in connection with the exchange
or transfer of bonds. The bond registrar and paying agent shall
indicate on each bond the date of its authentication.
       7.     EXCHANGE AND TRANSFER OF BONDS.     Any bond, upon
surrender thereof to the bond registrar and paying agent with a
written instrument of transfer satisfactory to the bond registrar
and paying agent duly executed by the registered owner or his
duly authorized attorney, at the option of the registered owner
thereof, may be exchanged for bonds of any other authorized
denominations of the same aggregate principal amount and maturity
date and bearing the same rate of interest as the surrendered
bond.
       Each bond shall be transferable only upon the books of the
City, which shall be kept for that purpose by the bond registrar
and paying agent, upon surrender of such bond together with a
written instrument of transfer satisfactory to the bond registrar
and paying agent duly executed by the registered owner or his
duly authorized attorney.
       Upon the exchange or transfer of any bond, the bond
registrar and paying agent on behalf of the City shall cancel the
surrendered bond and shall authenticate and deliver to the
transferee a new bond or bonds of any authorized denomination of
the same aggregate principal amount and maturity date and bearing
the same rate of interest as the surrendered bond. If, at the
time the bond registrar and paying agent authenticates and
delivers a new bond pursuant to this section, payment of interest
on the bonds is in default, the bond registrar and paying agent
shall endorse upon the new bond the following: "Payment of
interest on this bond is in default. The last date to which
interest has been paid is _____________."
242                     MAY 24, 1999

       The City and the bond registrar and paying agent may deem
and treat the person in whose name any bond shall be registered
upon the books of the City as the absolute owner of such bond,
whether such bond shall be overdue or not, for the purpose of
receiving payment of the principal of and interest on such bond
and for all other purposes, and all payments made to any such
registered owner, or upon his order, in accordance with the
provisions of Section 3 of this resolution shall be valid and
effectual to satisfy and discharge the liability upon such bond
to the extent of the sum or sums so paid, and neither the City
nor the bond registrar and paying agent shall be affected by any
notice to the contrary. The City agrees to indemnify and save
the bond registrar and paying agent harmless from and against any
and all loss, cost, charge, expense, judgment or liability
incurred by it, acting in good faith and without negligence
hereunder, in so treating such registered owner.
       For every exchange or transfer of bonds, the City or the
bond registrar and paying agent may make a charge sufficient to
reimburse it for any tax, fee or other governmental charge
required to be paid with respect to such exchange or transfer,
which sum or sums shall be paid by the person requesting such
exchange or transfer as a condition precedent to the exercise of
the privilege of making such exchange or transfer.
       The bond registrar and paying agent shall not be required
to transfer or exchange bonds or portions of bonds which have
been selected for redemption.
       8.     FORM OF BONDS. The bonds shall be in substantially
the following form with such changes as shall be required by the
purchaser and approved by the City Manager, to wit:

                   UNITED STATES OF AMERICA
                      STATE OF MICHIGAN
                      COUNTY OF SAGINAW
                       CITY OF SAGINAW
                LIMITED TAX GENERAL OBLIGATION
          SEWAGE DISPOSAL SYSTEM BOND, SERIES 1999-A

INTEREST RATE       MATURITY DATE        DATE OR ORIGINAL ISSUE

Registered Owner:   Michigan Municipal Bond Authority

Principal Amount:

       The City of Saginaw, County of Saginaw, State of Michigan
(the "City"), acknowledges itself indebted to and for value
received hereby promises to pay to the Registered Owner
identified above, or registered assigns, the Principal Amount set
forth above or so much thereof as shall have been advanced to the
City pursuant to a Purchase Contract between the City and the
                     MAY 24, 1999                           243

Michigan Municipal Bond Authority (the "Authority") and a
Supplemental Agreement by and among the City, the Authority and
the State of Michigan acting through the Department of
Environmental Quality on the maturity dates and in the amounts
set forth on Exhibit A attached hereto unless redeemed prior
thereto as hereinafter provided, the final payment to be made
upon presentation and surrender of this bond at the office of the
City Treasurer, City of Saginaw, Michigan, the bond registrar and
paying agent, or at such successor bond registrar and paying
agent as may be designated pursuant to the Resolution identified
below; and to pay to the Registered Owner, as shown on the
registration books at the close of business on the 15th day of
the calendar month preceding the month in which an interest
payment is due, by check or draft drawn upon and mailed by the
bond registrar and paying agent by first class mail postage
prepaid to the Registered Owner at the registered address,
interest at the rate per annum specified above on such Principal
Amount, to the extent advanced to the City pursuant to the
Purchase Contract and the Supplemental Agreement until the City's
obligation with respect to the payment of such Principal Amount
is discharged. Interest is payable on the first days of April
and October in each year, commencing on __________, ____.
Principal and interest are payable in lawful money of the United
States of America.
       In the event of a default in the payment of principal or
interest hereon when due, whether at maturity, by redemption or
otherwise, the amount of such default shall bear interest (the
"additional interest") at a rate equal to the rate of interest
which is two percent above the Authority's cost of providing
funds (as determined by the Authority) to make payment on the
bonds of the Authority issued to provide funds to purchase this
bond but in no event in excess of the maximum rate of interest
permitted by law.    The additional interest shall continue to
accrue until the Authority has been fully reimbursed for all
costs incurred by the Authority (as determined by the Authority)
as a consequence of the City's default. Such additional interest
shall be payable on the interest payment date following demand of
the Authority. In the event that (for reasons other than the
default in the payment of any municipal obligation purchased by
the Authority) the investment of amounts in the reserve account
established by the Authority for the bonds of the Authority
issued to provide funds to purchase this bond fails to provide
sufficient available funds (together with any other funds which
may be made available for such purpose) to pay the interest on
outstanding bonds of the Authority issued to fund such account,
the City shall and hereby agrees to pay on demand only the City's
pro rata share (as determined by the Authority) of such
deficiency as additional interest on this bond.
       During the time funds are being drawn down by the City
244                     MAY 24, 1999

under this Bond, the Authority periodically will provide the City
a statement showing the amount of principal that has been
advanced and the date of each advance, which statement shall
constitute prima facie evidence of the reported information;
provided that no failure on the part of the Authority to provide
such a statement or to reflect a disbursement or the correct
amount of a disbursement shall relieve the City of its obligation
to repay the outstanding principal amount actually advanced, all
accrued interest thereon, and any other amount payable with
respect thereto in accordance with the terms of this Bond.
       This bond is one of a series of bonds (issued in the form
of a single registered bond in the principal sum of _____________
Dollars ($__________) issued by the City under and pursuant to
and in full conformity with the Constitution and Statutes of
Michigan and a bond authorizing resolution (the "Resolution")
adopted by the City Council of the City of Saginaw, Michigan for
the purpose of defraying the cost of acquiring and constructing
combined sewer overflow facilities to serve the City. This bond
is issued pursuant to Permit No. MI0025577 issued by the Michigan
Department of Natural Resources on July 20, 1995. Pursuant to
Act 451 of 1994, as amended, the City is authorized to issue this
bond in order to construct combined sewer overflow facilities
that have been set forth in the permit as being necessary to
provide for the effective operation of the City's sewage disposal
system. The full faith and credit of the City have been pledged
to pay the principal of and interest on this bond as they shall
become due.     Taxes imposed by the City are subject to
constitutional tax limitations.
       This bond is transferable, as provided in the Resolution,
only upon the books of the City kept for that purpose by the bond
registrar and paying agent, upon the surrender of this bond
together with a written instrument of transfer satisfactory to
the bond registrar and paying agent duly executed by the
registered owner or his attorney duly authorized in writing.
Upon the exchange or transfer of this bond a new bond or bonds of
any authorized denomination, in the same aggregate principal
amount and of the same interest rate and maturity, shall be
authenticated and delivered to the transferee in exchange
therefor as provided in the Resolution, and upon payment of the
charges, if any, therein provided. Bonds so authenticated and
delivered shall be in the denomination of $5,000 or any integral
multiple thereof not exceeding the aggregate principal amount for
each maturity. The bond registrar and paying agent shall not be
required to transfer or exchange this bond or any portion of this
bond which has been selected for redemption.
       This bond is subject to redemption prior to maturity at
the option of the City and with the prior written consent of the
Authority, in such order as shall be determined by the City, on
any one or, more interest payment dates.       This bond may be
                    MAY 24, 1999                           245

partially redeemed in the amount of $5,000 or any integral
multiple thereof. If less than the entire principal amount of
the bond maturing in any year is to be redeemed, the portion of
the bond to be redeemed shall be selected by lot. The redemption
price shall be the par value of the bond or portion of the bond
called to be redeemed plus interest to the date fixed for
redemption. Not less than thirty days notice of redemption shall
be given to the holder of the bond called to be redeemed by mail
to the registered holder at the registered address. That portion
of the bond called for redemption shall not bear interest after
the date fixed for redemption, provided funds are on hand with
the bond registrar and paying agent to redeem the same.
246                        MAY 24, 1999

       Notwithstanding any other provision of this bond, so long
as the Authority is the owner of this bond, (a) this bond is
payable as to principal, premium, if any, and interest at NBD
Bank, Detroit, Michigan or at such other place as shall be
designated in writing to the City by the Authority (the
"Authority's Depository"); (b) the City agrees that it will
deposit with the Authority's Depository payments of the principal
of, premium, if any, and interest on this bond in immediately
available funds at least five business days prior to the date on
which any such payment is due whether by maturity, redemption or
otherwise; and (c) written notice of any redemption of this bond
shall be given by the City and received by the Authority's
Depository at least 40 days prior to the date on which redemption
is to be made.
       It is hereby certified, recited and declared that all
acts, conditions and things required to exist, happen and be
performed precedent to and in the issuance of this bond, existed,
have happened and have been performed in due time, form and
manner as required by law, and that the total indebtedness of the
City, including this bond, does not exceed any constitutional or
statutory limitation.
       IN WITNESS WHEREOF, the City of Saginaw, County of
Saginaw, Michigan, by its City Council, has caused this bond to
be executed in its name by the manual or facsimile signatures of
the Mayor and the Clerk and its corporate seal (or a facsimile
thereof) to be impressed or imprinted hereon. This bond shall
not be valid unless the Certificate of Authentication has been
manually executed by of the bond registrar and paying agent.

CITY OF SAGINAW, MICHIGAN

         By:
                Its:   Mayor
[SEAL]

         And:
                Its:   Clerk

                   CERTIFICATE OF AUTHENTICATION

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


Treasurer, City of Saginaw
Bond Registrar and Paying Agent

By:
         Authorized Representative
                       MAY 24, 1999                          247


AUTHENTICATION DATE:        __________, 1999

                            ASSIGNMENT

       For value received, the undersigned hereby sells, assigns
and transfers unto _________________________ (please print or
type name, address and taxpayer identification number of
transferee) the within bond and all rights thereunder and hereby
irrevocably constitutes and appoints ____________________________
attorney to transfer the within bond on the books kept for
registration thereof, with full power of substitution in the
premises.

Dated: ____________________
       ____________________________

Signature Guaranteed:              ____________________________

       Signature(s) must be guaranteed by an eligible guarantor
institution participating in a Securities Transfer Association
recognized signature guarantee program.

                            EXHIBIT A

       The principal amounts and maturity dates applicable to the
bond to which this Exhibit A is attached are as follows:

      MATURITY DATE                      PRINIPAL MATURITY

                1                               $

                        (END OF BOND FORM)

       9.     SECURITY. The full faith and credit of the City
are pledged for the prompt payment of the principal of and
interest on the bonds as the same shall become due. Unless the
City has or will have revenues available from the operation of
its sewage disposal system to pay the principal of and interest
on the bonds, there shall be levied upon all taxable property in
the City upon the tax roll for the year 2000 and upon the tax
roll for each year thereafter while any of the bonds shall be
outstanding, an amount such that the estimated collections
therefrom will be sufficient to pay promptly at maturity the
principal and interest maturing on the bonds prior to the time of
the following year's tax collections.      Taxes required to be
levied to pay the principal of and interest on the bonds shall be
subject to constitutional limitations.     The proceeds of such
taxes (both current and delinquent) shall be deposited as
248                     MAY 24, 1999

collected into a debt retirement fund which shall be established
and maintained as either a separate or a common fund as permitted
by law, and until the principal of and the interest on the bonds
are paid in full, such proceeds shall be used only for payment of
such principal and interest or for other authorized purposes of
the fund.
       10.    DEFEASANCE.     In the event cash or direct
obligations of the United States or obligations the principal of
and interest on which are guaranteed by the United States, or a
combination thereof, the principal of and interest on which,
without reinvestment, come due at times and in amounts sufficient
to pay, at maturity or irrevocable call for earlier optional
redemption, the principal of and interest on the bonds or any
portion of the bonds, shall have been deposited in trust, this
Bond Resolution shall be defeased with respect to such bonds and
the owners of such bonds shall have no further rights under this
Bond Resolution except to receive payment of the principal of and
interest on the bonds from the cash or securities deposited in
trust and the interest and gains thereon and to transfer and
exchange bonds as provided herein.
       11.    CONSTRUCTION FUND. All proceeds from the sale of
the bonds shall be set aside in a construction fund for the
Project and used to defray the cost of the Project, including any
engineering, legal and other expenses incidental thereto.
       12.    SALE, ISSUANCE, DELIVERY, TRANSFER AND EXCHANGE OF
BONDS. The City Council hereby determines that the bonds shall
be sold at a private, negotiated sale to the Authority, as
authorized by Act 227. The sale shall be made pursuant to the
terms and conditions to be set forth in a Purchase Contract (the
"Purchase Contract") and a Supplemental Agreement (the
"Supplemental Agreement") and the City Manager (or in his absence
the City Clerk or City Treasurer) is authorized to execute and
deliver the Purchase Contract and the Supplemental Agreement in
such form as shall be approved by the City Manager or the City
Clerk or the City Treasurer at the time of sale. In addition,
the City Manager and other City employees and officials are
authorized to execute and deliver to the Authority an Issuer’s
Certificate and such other certificates or documents as the
Authority or bond counsel shall require and to do all other
things necessary to effectuate the sale, issuance, delivery,
transfer and exchange of the bonds in accordance with the
provisions of this resolution.
       13.    REPLACEMENT OF BONDS.    Upon receipt by the City
Manager or City Treasurer of proof of ownership of an unmatured
bond, of satisfactory evidence that the bond has been lost,
apparently destroyed or wrongfully taken and of security or
indemnity which complies with applicable law and is satisfactory
to the City Manager or City Treasurer, the City Manager or City
Treasurer may authorize the bond registrar and paying agent to
                     MAY 24, 1999                           249

deliver a new executed bond to replace the bond lost, apparently
destroyed or wrongfully taken in compliance with applicable law.
 In the event an outstanding matured bond is lost, apparently
destroyed or wrongfully taken, the City Manager or City Treasurer
may authorize the bond registrar and paying agent to pay the bond
without presentation upon the receipt of the same documentation
required for the delivery of a replacement bond.        The bond
registrar and paying agent, for each new bond delivered or paid
without presentation as provided above, shall require the payment
of expenses, including counsel fees, which may be incurred by the
bond registrar and paying agent and the City in the premises.
Any bond delivered pursuant the provisions of this Section 13 in
lieu of any bond lost, apparently destroyed or wrongfully taken
shall be of the same form and tenor and be secured in the same
manner as the bond in substitution for which such bond was
delivered.
       14.    TAX COVENANT. The City Council hereby covenants on
behalf of the City to comply with all requirements of the
Internal Revenue Code of 1986, as amended, necessary to assure
that the interest on the bonds will be and will remain excludable
from gross income for federal income tax purposes.      The City
Manager and other appropriate City officials are authorized to do
all things necessary to assure that the interest on the bonds
will be and will remain excludable from gross income for federal
income tax purposes.
       15.    APPROVAL OF DEPARTMENT OF TREASURY – EXCEPTION FROM
PRIOR APPROVAL. The issuance and sale of the bonds shall be
subject to permission being granted therefor by the Department of
Treasury of the State of Michigan or an exception from prior
approval being granted by the Department of Treasury.
       16.    CONFLICTING RESOLUTIONS. All resolutions and parts
of resolutions insofar as they may be in conflict herewith are
hereby rescinded.
       Councilperson Seals moved the adoption of the foregoing
resolution.
       YEAS:         Councilmembers Cottrell, Dankert, DeGuise,
                     Ham, Schrems, Seals, Soza, and Mayor Pro Tem
                     Williams.
       NAYS:         None
       ABSENT:       Mayor Loster

      RESOLUTION DECLARED ADOPTED.

STATE OF MICHIGAN   )
                    )ss
COUNTY OF SAGINAW   )

              I hereby certify that the foregoing is a true and
complete copy of a resolution duly adopted by the City Council of
250                     MAY 24, 1999

the City of Saginaw at a regular meeting held on the ____ day of
__________, 1999, the original of which resolution is on file in
my office. I further certify that notice of said meeting was
given in accordance with the provisions of the open meetings act.

                                 ____________________________
                                 Clerk
                                 City of Saginaw
       Councilwoman Seals offered and moved adoption of the
following resolution:

A RESOLUTION TO AMEND THE BROWNFIELD PLAN FOR THE CITY OF
SAGINAW, MICHIGAN PURSUANT TO THE PROVISIONS OF ACT 381, PUBLIC
ACTS OF 1996

       WHEREAS, The Saginaw City Council approved a resolution on
September 29, 1997 creating a Brownfield Redevelopment Authority
and designated the boundaries of the Brownfield Redevelopment
Zone, and
       WHEREAS, The Saginaw City Council approved a resolution on
May 17,1999 adopting a development plan for the Brownfield
Redevelopment Zone which complies with the provisions of Act 381
of Public Acts of 1996, and
       WHEREAS, The Brownfield Redevelopment Authority approved
amendments to the Brownfield Redevelopment Zone Development Plan
which complies with the provision of Act 381 of Public Acts of
1996, and
       WHEREAS, A public notice on the proposed amendments was
published in the Saginaw News and all taxing jurisdictions were
notified of the hearing on the plan amendments and
       WHEREAS, The amended Brownfield Plan constitutes a public
purpose and eligible activities provided in the amended plan are
feasible and the cost of the eligible activities is reasonable to
carry out the purposes of the Act, now therefore, be it RESOLVED,
that the Saginaw City Council does hereby approve the amended
Development Plan for the City of Saginaw Brownfield Redevelopment
Zone.
       Adopted unanimously.

       Councilwoman Seals offered and moved adoption of the
following resolution:
       WHEREAS, The Saginaw Housing Commission (SHC) has received
approval from the U. S. Department of Housing & Urban Development
to demolish 365 units at Daniel Heights; and
       WHEREAS, The Housing Commission is preparing a HOPE VI
grant application to be submitted to HUD for new construction
with a demonstration for partnership and mixed income community
development; and
       WHEREAS, The Housing Commission proposes the construction
                     MAY 24, 1999                           251

of up to 128 single-family detached homes for rental occupancy,
with funding leveraged by Low Income Housing Tax Credit
Syndication; and
       WHEREAS, An additional 109 scattered site homes throughout
Saginaw will be acquire and rehabilitated for homeownership and
60 additional scattered site homes will be acquired and
rehabilitated for public housing; and
       WHEREAS, A Washington Street Industrial Corridor upgrade
will build on the benefits available from the designation as a
Renaissance Zone; and
       WHEREAS, The SHC will partner with First Ward Community
Center and its contracted source providers for day care, learning
for all ages, library facilities and community services
appropriate to the neighborhood; now
       THEREFORE BE IT RESOLVED, That the Saginaw City Council
and administration support and concur with the 1999 HOPE VI Grant
application of the Saginaw Housing Commission.
       Adopted unanimously.

               MOTIONS AND MISCELLANEOUS BUSINESS
       Councilwoman Seals spoke on meeting set for tomorrow on
grant writing.
       Councilman DeGuise requested that the agenda be state when
the Council may speak (i.e. remarks from Council). Commented on
cats not requiring a license but if loose the Animal Control will
pick it up if trapped and has also on dogs being allowed to run
loose in public areas.
       Councilwoman Cottrell spoke on the DARE Annual Program and
the pizza party for the winning schools which were Merrill Park
and Jessie Loomis. Commended the children from the Northeast and
West River Neighborhood groups who planted flowers. Also,
reminded Council that a committee needs to be formed for the City
Manager’s evaluation.
       Mayor Pro Tem Williams asked if the City has any ownership
on 23rd at Webber. There is a dirt road that produces a lot of
dust in the summer when big trucks travel over it thereby
creating a health hazard to area residents.
       Councilwoman Ham made a comment about a large pothole on
Vets Memorial Parkway leading to the expressway.
       Councilwoman Seals left the Chambers at this time.

       Councilwoman Ham moved to approve the reappointment of
James Jackson to the Local Development Finance Authority for a
four-year term to expire June 1, 2003.
       Adopted unanimously.

       Councilwoman Ham moved to approve the appointment of
Delena Allen to the Saginaw Housing Commission to fill the
vacancy created by Tom Conklin.  Term to expire September 8,
252                      MAY 24, 1999

2004.
        Adopted unanimously.

       Councilwoman Cottrell moved to go into closed session to
discuss specific pending litigation with regard to a zoning
appeal/ADA    lawsuit;     defective    highway    case;    and
discrimination/contract lawsuit.
       Adopted by the following vote:
       Ayes: Councilmembers Cottrell, Dankert, Ham, Schrems,
Soza, and Mayor Pro Tem Williams -6.
       Nays: Councilman DeGuise – 1.
                    MAY 24, 1999                          253

       After some time spent in closed session, the Council
returned to open session.
       Councilwoman Cottrell moved to adopt the recommendations
of the City Manager.
       Adopted unanimously.

On motion the Council adjourned.


Meloni Martin
Deputy City Clerk

								
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