May 21, 2001

CITY OF MASON COUNCIL CHAMBERS

201 W. ASH ST., MASON, MICHIGAN

MASON CITY COUNCIL MINUTES

May 21, 2001

The meeting was called to order at 7:34 p.m. by Mayor Whipple.

Present: Council Members: Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

Also present: Martin Colburn, City Administrator

Dennis McGinty, City Attorney

Norman Austin, Financial Director/Treasurer

Deborah Stein, Deputy Clerk

Councilmember Preadmore led in the Pledge of Allegiance and offered the invocation.

APPROVAL OF MINUTES - REGULAR COUNCIL MEETING: May 7, 2001

The Minutes of May 7, 2001 were approved as written.

APPROVAL OF BILLS

It was moved by Howe and supported by Preadmore to approve the payment of the bills in the amount of $333,066.26 as submitted.

VOTE: Yes (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No (0) MOTION CARRIED

PEOPLE FROM THE FLOOR - None.

REGULAR BUSINESS

Public Hearing - Zoning Ordinance No. 135

Mayor Whipple opened and closed the public hearing at 7:45 p.m. as there were no comments.

Public Hearing - Zoning Ordinance No. 135 - Second Reading and Adoption

Ordinance No. 135 was considered read for the second time and introduced by Preadmore and seconded by Soule.

It was moved by Preadmore and seconded by Clark to amend Zoning Ordinance No. 135, Section 1 of the Adopting Ordinance Cover Page, by striking the work “Amended” and inserting the word “Repealed” in the title to read, “Ordinance Repealed.”

VOTE: Yes (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No (0) MOTION CARRIED

Discussion was held on the proposed Zoning Map and corrections.

CITY OF MASON

INGHAM COUNTY, MICHIGAN

ZONING ORDINANCE NO. 135

AN ORDINANCE TO REPEAL MASON ZONING ORDINANCE NO. 81 IN ITS ENTIRETY AND TO ADOPT IN SUBSTITUTION THEREFOR THIS ORDINANCE NO. 135.

THE CITY OF MASON ORDAINS:

Section 1. Ordinance Repealed. Mason Zoning Ordinance No. 81, adopted May 1, 1972, is hereby repealed in its entirety by substituting therefor the following Zoning Ordinance No. 135 for the City of Mason consisting of Articles 1 through 15 thereof, to be the Zoning Ordinance for the City of Mason.

Section 2. Notice of Adoption, Publication. Notice of adoption of this zoning ordinance shall be published in a newspaper of general circulation in the City of Mason within fifteen (15) days after adoption. This notice shall include the following information:

a. That a zoning ordinance regulating the development and use of land has been adopted by the City Council of the City of Mason in substitution for Ordinance No. 81.

b. The effective date of the ordinance.

c. The place and time where a copy of the ordinance may be purchased or inspected.

The foregoing Ordinance No. 135 was introduced by Council member Soule , supported by Council member Birdsall , and declared adopted on the 21st day of May, 2001, with the vote thereon being: Yes ( 7 ) No ( 0 ).

____________________________________ ____________________________________

MARTIN A. COLBURN, City Clerk RUSSELL W. WHIPPLE, Mayor

I, Martin A. Colburn, the duly qualified clerk for the City of Mason, Ingham County, Michigan, do hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the Mason City Council at a regular meeting of the Council held in the Council chambers at 201 W. Ash Street, Mason, Michigan on the 21st day of May, 2001, the original of which is in the City Clerk’s office.

__________________________________________

Dated: May 21, 2001 MARTIN A. COLBURN, City Clerk

Motion - Consideration of Water and Sewer Increase

Discussion was held on the recommended 3.2% water and sewer rate increase by the Water and Sewer Rate Study Committee and the current fund restricted surplus.

It was moved by Birdsall and seconded by Clark to accept the recommendation of the Water and Sewer Rate Study Committee and increase the water and sewer rates 3.2%.

Discussion followed on the proposed increase.

It was moved by Helbig and seconded by Clark to amend the proposed 3.2% increase to 2.6%.

VOTE ON THE AMENDMENT:

Yes (4) Clark, Preadmore, Helbig, Whipple

No (3) Howe, Soule, Birdsall MOTION CARRIED

VOTE ON THE AMENDED MOTION:

Yes (6) Helbig, Clark, Preadmore, Soule, Howe, Birdsall

No (1) Whipple MOTION CARRIED

Resolution No. 2001-30 - Adoption of the 2001-2002 Budget

Resolution No. 2001-30 was introduced by Soule and seconded by Birdsall.

It was moved by Preadmore and seconded by Birdsall to add an expenditure for $32,000 for the payment on the Park Street property loan to the General Fund, and to reduce the State Revenue Sharing by $7,925.

VOTE: Yes (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No (0) MOTION CARRIED

It was moved by Preadmore and seconded by Birdsall to amend Resolution No. 2001-30 by revising the millage levy from 13.75 to 13.25.

It was moved by Birdsall and seconded by Preadmore to amend Mayor Pro Tem Preadmore’s motion as follows: “... to amend Resolution No. 2001-30 by revising the millage levy from 13.75 to 13.25 and to reduce the budget expenditures by $27,000 of the $42,000 that was budgeted for the Bond Park restroom repairs.”

VOTE ON THE AMENDMENT TO AMEND:

Yes (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No (0) MOTION CARRIED

VOTE ON THE AMENDED MOTION:

Yes (5) Helbig, Preadmore, Howe, Birdsall, Whipple

No (2) Clark, Soule MOTION CARRIED

Mayor Whipple commented on the construction of an additional building behind Station No. 2 for vehicle and equipment storage for the Fire Department. The proposed 2001 - 2002 Budget contains $4,500 toward the construction of that building on the understanding that the Fire Fighter’s Association would donate $4,500. However, Mayor Whipple feels that the City of Mason should budget the full cost of the building.

It was moved by Preadmore and seconded by Helbig to add $4,500 to the Fire Department’s budget for the purchase of building materials for a pole barn behind Fire Station No. 2.

VOTE: Yes (5) Helbig, Clark, Preadmore, Howe, Whipple

No (2) Soule, Birdsall MOTION CARRIED

Discussion was held on increasing the police department budget for the purchase of standardized weapons.

It was moved by Clark and seconded by Preadmore to increase the police budget by $6,000 to purchase standardized weapons for the police department.

VOTE: Yes (2) Preadmore, Clark

No (5) Helbig, Howe, Soule, Birdsall, Whipple MOTION FAILED

CITY OF MASON

CITY COUNCIL RESOLUTION NO. 2001-30

MAY 21, 2001

WHEREAS, the City Council of the City of Mason did hold a public hearing on the proposed 2001-2002 fiscal year budget on Monday, May 7, 2001, as prescribed by law: now therefore

BE IT RESOLVED, that the proposed 2001-2002 Operating Budget herewith filed with the City Clerk, providing for the sums of $9,366,990 for expenditures for municipal purposes for General Fund, Special Revenue Funds, Capital Project Funds, Trust and Agency Funds, Enterprise Funds, Intergovernmental funds, and Special Assessment Funds for the 2001-2002 fiscal year, and that of the said amount the sum of $1,783,078 shall be raised by taxes, or a levy of 13.25 mills, upon real and personal property of the City of Mason; and

RESOLVED FURTHER, that whereas the Downtown Development Authority (DDA) budget for 2001-2002 is forwarded to the City Council for its approval, and whereas the captured State Equalization Taxable Valuation for the DDA District is $2,321,088; the sum of $31,915 shall be placed in the DDA Fund along with other taxing jurisdictions’ appropriate tax dollar amounts, and together this money will be used for future public improvements within the District, and bond payments; and

RESOLVED FURTHER, that whereas the Local Development Finance Authority (LDFA) budget for 2001-2002 is forwarded to the City Council for its approval, and whereas the captured State Equalization Taxable Valuation for the LDFA District is $22,623,694; the sum of $311,076 shall be placed in the LDFA Fund along with other taxing jurisdictions’ appropriate tax dollar amounts, and together this money will be used for future public improvements within the District, and bond payments; and

RESOLVED FURTHER, that the 2001-2002 Governmental Fund Budgets shall be automatically amended on July 1, 2001 to re-appropriate encumbrances outstanding and reserved on June 30, 2001,

NOW, THEREFORE, BE IT FINALLY RESOLVED, that the City Council of the City of Mason hereby adopts the 2001-2002 proposed fiscal year budget which currently on file in the office of the City Clerk.

Yes: (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No: (0)

Resolution No. 2001-31 - Reserve Account for Donations - Linear Park

City Administrator Colburn read a letter from Mr. Richard George Hayhoe pledging to donate $250,000 toward the creation of the Hayhoe Riverwalk in the City of Mason. Administrator Colburn presented $100,000 to Mayor Whipple from Mr. Hayhoe. Unfortunately, Mr. Hayhoe was unable to attend the meeting. He pledges to donate an additional $150,000 in 2002 for the project.

Resolution No. 2001-31 was introduced by Soule and seconded by Howe.

CITY OF MASON

CITY COUNCIL RESOLUTION NO. 2001-31

MAY 21, 2001

WHEREAS, The City Council respectfully accepts a generous gift of $250,00 from the Hayhoe family; and

WHEREAS, The Hayhoe family dedicates these funds expressly for the creation off a Linear Park within the City of Mason, in the proximity of Sycamore Creek; and

WHEREAS, it is the intent and understanding of the Hayhoe family that these funds will be established in a “Reserved Account,” to insure that these funds and any interest are used solely for the Linear Park, and if for any reason this park is not constructed, this contribution will be sent back; and

WHEREAS, the Hayhoe families respectfully have requested to have this park dedicated as the “Hayhoe Riverwalk.”

NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Mason, that the gift of $250,0000 be received and accepted with much appreciation to the Hayhoe family, and that the “Hayhoe Riverwalk,” that being a linear park along the Sycamore Creek, be established.

Yes: (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No: (0)

Resolution No. 2001-32 - Video Taping Policy - City Council and Planning Commission Meetings

It was discussed that Resolution No. 2001-32 will establish priorities and clarify the video taping policy.

Resolution No. 2001-32 was introduced by Soule and seconded by Birdsall.

CITY OF MASON

CITY COUNCIL RESOLUTION NO. 2001-32

MAY 21, 2001

WHEREAS, the City of Mason desires to establish policy regarding video taping and presenting live public meetings, and

WHEREAS, the City of Mason Council Members are providing outreach to those who nay not have the capacity or availability to attend council meetings personally; and

WHEREAS, limited resources are made available to insure that these meetings are made available through the government channel; and

WHEREAS, it is recognized that the primary policy making meetings of the City Council and Planning Commission are designated as priority for availability to the public; and

NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Mason directs the City Administrator to provide Regular Council and Planning Commission meetings live and taped to the public on a regular basis, and that Special meetings will be video taped or shown live upon request of the majority of that body with a prior timely request.

BE IT FURTHER RESOLVED, that Workshops will not be shown live or video taped without a prior timely request by the Council or Planning Commission.

Yes: (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No: (0)

Resolution No. 2001-33 - Bid Resolution for Sale of Special Assessment Bonds

Discussion was held on submitted bids for the sale of the special assessment bonds for the property owners’ share of the street programs for 2000 - 2001 and 2001 - 2002 fiscal years.

Resolution No. 2001-33 was introduced by Soule and seconded by Howe.

CITY OF MASON

CITY COUNCIL RESOLUTION NO. 2001-33

MAY 21, 2001

BID RESOLUTION--GENERAL OBLIGATION - LIMITED TAX BONDS

A regular meeting of the City Council of the City of Mason, Ingham County, Michigan (the “City”), was held in the City Hall, 201 West Ash Street, Mason, Michigan, on Monday, the 21st day of May, 2001, at 7:30 o’clock, p.m.

The meeting was called to order at 7:30 o’clock, p.m. by Mayor Whipple.

Present: Council Members - Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

Absent: Council Members - None

At 2:30 p.m., the City of Mason, Ingham County, Michigan (the "Issuer") received four bids for the purchase of Street and Sidewalk Improvement Special Assessment Bonds, Series 2001-A, in the aggregate principal sum of $205,000 (the "Bonds").

The Administrator announced that the bids in the possession of the Clerk would be read and proceeded to read such bids, in the presence of the City Council and the public attending the City Council meeting, as the same were handed to the Mayor by the Clerk.

The following bids were read:

Name of

Bidder

Amount

Of Bid

Interest Rate

Interest Cost

To City

Mason State Bank

(1)

$ 205,000 Amount

Average interest rate

4.965958%

2001 to 2002 incl. 3.90 %

2002 to 2003 incl. 4.20 %

2003 to 2004 incl. 4.40 %

2004 to 2005 incl. 4.60 %

2005 to 2006 incl. 4.75 %

2006 to 2007 incl. 4.80 %

2007 to 2008 incl. 4.85 %

2008 to 2009 incl. 4.95 %

2009 to 2010 incl. 5.00 %

2010 to 2011 incl. 5.00 %

2011 to 2012 incl. 5.05 %

2012 to 2013 incl. 5.10 %

2013 to 2014 incl. 5.15 %

2014 to 2015 incl. 5.20 %

$ 72,027.08

$ - 0 -

Premium

Name of

Bidder

Amount

Of Bid

Interest Rate

Interest Cost

To City

Independent Bank

(2)

$ 205,000

Amount

Average interest rate

5.10 %

2001 to 2014 incl. 5.10 %

______ to _____ incl. __________%

$ 73,971.25

$ - 0 -

Premium

Name of

Bidder

Amount

Of Bid

Interest Rate

Interest Cost

To City

Comerica

(3)

$ 205,000

Amount

Average interest rate

4.944915 %

2001 to 2002 incl. 7.00 %

2002 to 2003 incl. 7.00 %

2003 to 2004 incl. 3.90 %

2004 to 2005 incl. 4.00 %

2005 to 2006 incl. 4.10 %

2006 to 2007 incl. 4.15 %

2007 to 2008 incl. 4.20 %

2008 to 2009 incl. 4.30 %

2009 to 2010 incl. 4.40 %

2010 to 2011 incl. 4.50 %

2011 to 2012 incl. 4.65 %

2012 to 2013 incl. 4.80 %

2013 to 2014 incl. 4.90 %

2014 to 2015 incl. 5.00 %

$ 71,721.88

$ - 0 -

Premium

Name of

Bidder

Amount

Of Bid

Interest Rate

Interest Cost

To City

Raymond Jones & Associates

(4)

$ 205,000.00

Amount

Average interest rate

4.90 %

2001 to 2002 incl. 7.00 %

2002 to 2003 incl. 7.00 %

2003 to 2004 incl. 7.00 %

2004 to 2005 incl. 7.00 %

2005 to 2006 incl. 7.00 %

2006 to 2007 incl. 4.15 %

2007 to 2008 incl. 4.30 %

2008 to 2009 incl. 4.40 %

2009 to 2010 incl. 4.50 %

2010 to 2011 incl. 4.60 %

2011 to 2012 incl. 4.70 %

2012 to 2013 incl. 4.85 %

2013 to 2014 incl. 5.00 %

2014 to 2015 incl. 5.10 %

$ 71,802.29

$ - 0 -

Premium

It was moved by Council Member Soule and seconded by Council Member Howe that:

1. The bid of Comerica, for the purchase of $205,000 of the Bonds of the City, authorized by the City Council at a meeting on April 2, 2001, be accepted, and that the Clerk be authorized to return the certified checks of all unsuccessful bidders as promptly as possible.

2. The Treasurer be and is hereby authorized and directed to open a special bank account with Dart Bank of Mason, Michigan, to be designated 2001 STREET AND SIDEWALK CAPITAL PROJECTS FUND.

3. The Treasurer is further directed to cause the proceeds from the sale of the above‑referenced Bonds to be deposited into the herein established Capital Projects Fund and to cause the premium, if any, and accrued interest received at the time of delivery to be transferred to the 2001 STREET AND SIDEWALK BOND DEBT RETIREMENT FUND.

4. The Issuer hereby designates the Bonds of this issue as "qualified tax‑exempt obligations" for purposes of deduction of interest expense by financial institutions under the provisions of the Internal Revenue Code of 1986, as amended. The Issuer further covenants to comply with existing provisions of the Internal Revenue Code of 1986, as amended, necessary to maintain the exclusion of interest on the Bonds from gross income.

5. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be, and the same are, hereby rescinded.

Yeas: Council Members - Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

Nays: Council Members - None

Absent: Council Members - None

Resolution declared adopted.

Resolution No. 2001-34 - Resolution Appointing Bond Registrar - Paying Agent

Administrator Colburn commented that the submitted bids were considered. Staff is recommending Comerica as the bond paying agent.

Resolution No. 2001-34 was introduced by Soule and seconded by Howe.

CITY OF MASON

CITY COUNCIL RESOLUTION NO. 2001-34

RESOLUTION APPOINTING BOND REGISTRAR‑PAYING AGENT

MAY 21, 2001

A regular meeting of the City Council (the “City Council”) of the City of Mason, Ingham County, Michigan (the “City”), was held in the City Hall, 201West Ash Street, Mason, Michigan, on Monday, the 21^st day of May, 2001, at 7:30 o’clock, p.m.

The meeting was called to order at 7:30 o’clock, p.m. by Mayor Whipple.

Present: Council Members - Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

Absent: Council Members - None

The following resolution was offered by Council Member Soule and supported by Council Member Howe.

WHEREAS, on April 2, 2001, the City Council of the City of Mason, Ingham County, Michigan (the "Issuer") authorized the issuance of bonds in the principal sum of $205,000; and

WHEREAS, it is necessary for the Issuer to appoint a bond registrar‑paying agent for said Bonds.

NOW, THEREFORE, BE IT RESOLVED THAT:

1. The Issuer hereby appoints Bank One, as Bond Registrar‑Paying Agent and directs the Treasurer to execute for and on behalf of the Issuer a Bond Registrar‑Paying Agent Agreement.

2. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be, and the same are, hereby rescinded.

Yeas: Council Members - Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

Nays: Council Members - None

Absent: Council Members - None

Resolution declared adopted.

Motion - Request for Temporary Alley Right of Way

Teresa Anderson and David Hyndman were present to request permission for a temporary alley right of way to erect an open tent for their wedding reception. The tent will be put up June 29, 2001 and taken down July 1, 2001. They provided a consent form signed by their neighbors that use the alleyway.

It was moved by Clark and seconded by Preadmore to grant approval for the residents at 322 E. Oak Street to erect a 90' x 20' open tent in the alley behind their home to accommodate their wedding reception Friday, June 29^th and will remove the tent on Sunday, July 1^st.

VOTE: Yes (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No (0) MOTION CARRIED

Motion - Bid for Park Street Well

Discussion was held on the bids submitted for the reconditioning of the Park Street Well.

It was moved by Soule and seconded by Preadmore to award the bid to Lane Northern in the amount of $12,228 for the reconditioning of the Park Street Well.

VOTE: Yes (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No (0) MOTION CARRIED

Motion - Bid of Mason Police Department Carpet

It was discussed that all three bids submitted for carpet for the Police Department were almost identical. Discussion followed on supporting local business in Mason.

It was moved by Birdsall and seconded by Clark to award the bid for carpet replacement in the police department to Hometown Flooring in the amount of $3,934.35.

VOTE: Yes (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No (0) MOTION CARRIED

Motion - Quote for Confined Space Training Center

Discussion was held on the quote from R & R Finishing Touch for $2,500 for the Confined Space Training Center. The city had previously bid this project. However, all bids received were too high.

It was moved by Preadmore and seconded by Helbig to accept the quote from

R & R Finishing Touch for $2,500 for the Confined Space Training Center.

VOTE: Yes (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No (0) MOTION CARRIED

Motion - Quote for MSA Orion Multi Gas Detector

It was discussed that although bids were requested for a multiple gas detector, no bids were submitted. Apollo Fire Equipment Company has submitted a quote in the amount of $1,750.

It was moved by Soule and seconded by Howe to approve the purchase of the MSA Orion Multi Gas Detector in the amount of $1,750 from Apollo Fire Equipment Company.

VOTE: Yes (7) Helbig, Clark, Preadmore, Soule, Howe, Birdsall, Whipple

No (0) MOTION CARRIED

UNFINISHED BUSINESS

Discussion was held on personnel issues.

NEW BUSINESS - None.

COUNCIL CORRESPONDENCE

· Investment Report for third quarter of FY 2000 - 2001.

LIAISON REPORT

Councilmember Soule commented that the next Planning Commission meeting is scheduled for Tuesday, June 12, 2001 at 6:30 p.m. in the Council Chambers. The Commission had a brief discussion on updating the Master Plan and forming a small committee of the commissioners to begin preparing a strategy.

ADMINISTRATOR’S REPORT