PRESIDING OFFICER: MAYOR JOHN C.M. DAVIS

OPENING PRAYER:                 PASTOR BURTON FOX

PLEDGE OF ALLEGIANCE:      DAVID PYKE

PRESENT:       Mayor John C.M. Davis, Mayor Pro-Tem Susan J. Osika, Councilpersons Joane E. Ford, Justin R. Horvath, Mark D. Owen, Linda L. Robertson, and Charles J. Sumrack

ABSENT:         None.

APPROVE AGENDA    

Motion by Councilperson Ford to approve the Agenda as presented.  Motion supported by Councilperson Robertson and concurred by unanimous vote.

APPROVE MINUTES – AUGUST 16, 2004

Motion by Mayor Pro-Tem Osika to approve the Minutes of the Regular Meeting of August 16, 2004 as presented.  Motion supported by Councilperson Sumrack and concurred by unanimous vote.

APPROVE MINUTES – AUGUST 30, 2004

Motion by Councilperson Robertson to approve the Minutes of the Special Meeting of August 30, 2004 as presented.  Motion supported by Mayor Pro-Tem Osika and concurred by unanimous vote.

Mayor Davis read the Rules for Addressing the City Council.

CITIZEN COMMENTS

Michael Cline, 411 North Chipman Street, clarified his recent statements regarding the tax abatement for A.O. Smith.  He also inquired as to whether the City had a policy to revoke an abatement to deal with abuse of tax abatements/exemptions.

Planning Director Philip B. Hathaway responded by saying the City has no such policy in place.  He went on to say that the current policy follows a “mutual risk” idea.

City Manager Gregg G. Guetschow stated that the tax exemption for A.O. Smith was granted for approximately $2.6 million in new equipment – of which only $144,000 was purchased.

Councilperson Mark D. Owen commented regarding recent talk in Lansing of cutting revenue sharing to the Counties and possible temporary tax increases.

CONSENT AGENDA

Motion by Councilperson Ford to approve the Consent Agenda as follows:

Amend July 6, 2004 City Council Minutes.  Amended the motion related to the Property Sale - Osburn Lakes Single-Family Site Condominium Project item of business to include “authorize the Mayor and City Clerk to execute the option and Philip B. Hathaway, Director of Community Development to sign the closing documents”.

Planning Commission Referral.  Referred to Planning Commission the request of Shiawassee Council for Child Abuse Prevention to rezone the parcel at 1216 West Main Street from B-4 General Business District to OS-1 Office Service District.

Planning Commission Referral.   Referred to Planning Commission the staff request to consider a zoning text amendment to Chapter 38 of the Owosso City Code that would provide for Planned Unit Development Districts, associated conceptual plan provisions, site plan approvals and supplemental standards.

Discharge of Rental Rehabilitation Property Mortgage. Authorized Discharge of Rental Rehabilitation Property Mortgage as it relates to 421 Genesee Street (Clint Sumner) and further authorized the Mayor and City Clerk to execute appropriate documents.

Bid Award.  Accepted low bid from Home Depot for materials for the salt barn at $14,975.20.

Payment Authorization.  Authorized payment for emergency repair of a 150 HP Vertical Turbine Pump (T-1) at the Wastewater Treatment Plant in the amount of $7,073.32.

Payment Authorization.  Authorized payment to Shiawassee R.E.S.D. in the amount of $12,908.48 for the installation of fiber optic cable.

Contract Payment.  Authorized Progress Payment No. 1 to Sascon Incorporated in the amount of $13,518.00 for work completed on the Community Development Block Grant elevator project at 104-108 North Washington Street.

Contract Payment.  Authorized Progress Payment No. 1 to Constine Inc. in the amount of $24,754.41 for work completed on the 2004 Street Program.

Contract Payment.  Authorized Progress Payment No. 6 to Barnhart & Son in the amount of $71,195.23 for work completed on Phase One, Osburn Lakes Site Condominium Project Infrastructure Installation.

Change Order.  Authorized Change Order No.1 to subtract $1,259.20 from the bid award for Cobblestone Pavers the Michigan Avenue Reconstruction Project.

Contract Payment.  Approved Final Payment in the amount of  $20,664.30 to Cobblestone Pavers for the Michigan Avenue Reconstruction Project.

Change Order.  Authorized Change Order No.2 to add $3,784.23 to the bid award for Etna Supply Company for additional sanitary sewer pipe for the Phase One, Osburn Lakes Site Condominium Project.

Change Order.  Authorized Change Order No. 2 increasing the amount of the purchase order for pea stone to Sumbera Excavating from $24,737.98 to $30,269.91 for backfill stone for Phase One, Osburn Lakes Site Condominium Project.

Change Order.  Authorized Change Order No. 1 increasing the amount of the purchase order for sand to Sumbera Excavating from $74,715.00 to $78,301.70 for backfill sand for Phase One, Osburn Lakes Site Condominium Project.

Warrant No. 299.  Accepted Warrant No. 299 as presented.

Motion supported by Councilperson Horvath.

Roll Call Vote.

AYES:              Councilperson Owen, Mayor Pro-Tem Osika, Councilpersons Ford, Sumrack, Robertson, Horvath, and Mayor Davis

NAYS:              None.

ITEMS OF BUSINESS

Lot Split Authorization

Motion by Councilperson Robertson to authorize the division of City lot under Michigan Subdivision Control Act for platted lot described as 1313 North Gould Street as follows:

Current:

050-197-000-010-00

1313 North Gould Street

LOT 10 DUDLEY PARK SUBDIV 7

New Description After Split, (1313 North Gould Street):

LOT 10 DUDLEY PARK SUBDIV 7, EXCEPT, BEG N89*04’00”W, 53.56’, FROM NE COR LOT 10, TH S 00*55’45”W, 3.28’, N88*26’50”W, 42.42’, N00*56’00”E, 2.82’ TO N LN OF SAID LOT 10, TH S89*04’00”E, 42.41’ TO POB.

Current:

050-197-000-011-00

1317 North Gould Street

LOT 11 DUDLEY PARK SUBDIV 7

New Description After Addition of Split, (1317 North Gould Street): 

LOT 11 DUDLEY PARK SUBDIV 7, ALSO, BEG N89*04’00”W, 53.56’, FROM NE COR LOT 10, TH S 00*55’45”W, 3.28’, N88*26’50”W, 42.42’, N00*56’00”E, 2.82’ TO N LN OF SAID LOT 10, TH S89*04’00”E, 42.41’ TO POB.

Motion supported by Councilperson Owen.

Roll Call Vote.

AYES:              Councilpersons Ford, Sumrack, Mayor Pro-Tem Osika, Councilpersons Owen, Horvath, Robertson, and Mayor Davis.    

NAYS:              None.

Lot Split Authorization

Motion by Mayor Pro-Tem Osika to authorize the division of City lot under Michigan Subdivision Control Act for platted lot described as 424 Maple Street as follows:

Current:

050-710-000-001-00

424 Maple Street

COM ON SE COR OUT LOT 1, TH N 128', W 66', S 128', E TO BEG J L WRIGHTS ADD

New Description After Split, (424 Maple Street): 

COM ON SE COR OUT LOT 1 N 128' W 66' S 128' E TO BEG J L WRIGHTS ADD

EXCEPT, BEG 120.5’ N OF SE COR OUTLOT 1, TH W 66’, TH SE 65.49’ TO A PT ON E LN OF OUTLOT 1 WH IS 7.5’ S OF POB, TH N TO POB. 

Current:

050-710-000-003-00

416 Maple Street

COM ON E LN OUTLOT 1, J L WRIGHTS ADD 128' N OF SE COR, TH N ON E LN 54', W 132’ ON LN PAR WITH S LN OUTLOT 1, S ON LN PAR WITH E LN 54', E TO BEG J L WRIGHTS ADD

New Description After Addition of Split (416 Maple Street):  

COM ON E LN OUTLOT 1, J L WRIGHTS ADD 120.5' N OF SE COR, TH N ON E LN 61.5', W 132’ ON LN PAR WITH S LN OUTLOT 1, S ON LN PAR WITH E LN 54', TH E TO BEG

Motion supported by Councilperson Owen.

Roll Call Vote.

AYES:              Mayor Pro-Tem Osika, Councilpersons Robertson, Sumrack, Ford, Horvath, Owen, and Mayor Davis.         

NAYS:              None.

Assistance to Firefighters Grant Award

Motion by Councilperson Ford to accept a grant from the U.S. Department of Homeland Security in the amount of $129,796.00, with matching funds of $14,421.00, to purchase twenty –seven (27) self-contained breathing apparatuses and an air bottle filling station/compressor to re-supply the units, and authorize the Mayor and City Clerk to execute necessary documents.

Motion supported by Councilperson Robertson.

Roll Call Vote.

AYES:              Councilperson Sumrack, Mayor Pro-Tem Osika, Councilpersons Owen, Horvath, Robertson, Ford, and Mayor Davis.        

NAYS:              None.

Indemnity Agreement

There was general discussion regarding why the City was adding Midwest Bus Corporation to the original agreement.

Motion by Councilperson Sumrack to authorize Mayor and City Clerk to execute indemnity agreement with Midwest Bus Corporation concerning terms of City contract with the State of Michigan Community Development Block Grant Program in regard to Main Street/Chestnut Street intersection improvements as follows:

INDEMNITY AGREEMENT

THIS INDEMNITY AGREEMENT is dated the ______ day of ______________, 2004,

and is between the City of Owosso, a Michigan municipal corporation, of 301 West Main Street, Owosso, Michigan 48867 (“City”) and Midwest Bus Corporation of 1940 West Stewart Street, Owosso, Michigan 48867 (“the Company”).

WHEREAS the City and the Company have entered into an Economic Development Grant Agreement with the State of Michigan, being grant number MSC 2030 12-EDIG, a copy of which is attached hereto;

WHEREAS said Economic Development Grant Agreement provides “the Company further acknowledges that should job creation goals for this project not be met, the Michigan Strategic Fund may require the repayment of the CDBG funds up to the full grant amount”; and

WHEREAS the City and the Company intend to agree that the City indemnify the Company for the requirement that the Company repay grant funds.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.  The City shall indemnify the Company for any grant funds it has to repay the Michigan Strategic Fund if job creation goals stated in said Economic Development Grant Agreement are not met.

2.  The sole obligation of the City arising from this Indemnity Agreement is the repayment of the grant funds to the Company under the circumstances described in paragraph 1. No other obligations shall be implied from this Indemnity Agreement and specifically there is no duty to defend the Company.

3.  This Indemnity Agreement and the said Economic Development Grant Agreement contain the entire understanding of the parties and there are no representations which are not stated herein.

4.  This Indemnity Agreement may only be amended, assigned or transferred with the written consent of both parties.

5.  The law of the State of Michigan shall apply to this Indemnity Agreement.

Motion supported by Councilperson Owen.

Roll Call Vote.

AYES:              Councilpersons Owen, Ford, Mayor Pro-Tem Osika, Councilpersons Sumrack, Robertson, Horvath, and Mayor Davis.    

NAYS:              None.

Korner Pub Request 

There was general discussion regarding one complaint from a local business owner and the absence of complaints from neighboring residences in reference to last year’s outdoor activities at the Korner Pub.

Motion by Councilperson Robertson to approve the request from the Korner Pub at 1017 West Main Street to close a portion of State Street adjacent to their business for their anniversary celebration on September 11^th between the hours of 3-9 p.m. and further authorized approval for temporary changes to the liquor license permit serving outside of their usual premises and for staff to communicate this approval to the Liquor Control Commission.

Motion supported by Councilperson Owen.

Roll Call Vote.

AYES:              Councilperson Robertson, Mayor Pro-Tem Osika, Councilpersons Sumrack, Horvath, Owen, Ford, and Mayor Davis.  

NAYS:              None.

Executive Session   

Motion by Councilperson Ford to authorize holding executive session at conclusion of regular business for the purpose of discussing real property acquisition.

Motion supported by Councilperson Owen.

Roll Call Vote.

AYES:              Councilpersons Owen, Ford, Sumrack, Horvath, Mayor Pro-Tem Osika, Councilperson Robertson, and Mayor Davis.     

NAYS:              None.

Planning Commission ReferraL

There was general discussion regarding the proposed change with general sentiment being the proposed sign size was too large.  Planning Director Philip B. Hathaway responded by stating that the size discussed is actually smaller than most in similar ordinances from different municipalities.  He also stated that this action is only a referral, the Planning Commission will study the proposed changes and make their recommendation to Council.

Motion by Councilperson Robertson to refer to Planning Commission the staff request to amend Chapter 26, "Signs", of the Owosso City Code to permit an increase in the size of identification signs at development entrances from a maximum of six (6) square feet to a maximum of thirty (30) square feet. 

Motion supported by Councilperson Ford.

Roll Call Vote.

AYES:              Councilpersons Horvath, Sumrack, Mayor Pro-Tem Osika, Councilpersons Owen, Ford, Robertson, and Mayor Davis.        

NAYS:              None.

COMMUNICATIONS

John F. Archer, Building Official.  Minutes of Demolition Hearing of August 26, 2004.

John F. Archer, Building Official.  July 2004 Building Department Report.

John F. Archer, Building Official.  July 2004 Code Violations Report.

Downtown Development Authority.  Minutes of Meeting of September 1, 2004.

Owosso Planning Commission.  Minutes of Meeting of August 9, 2004.

Owosso Zoning Board of Appeals.  Minutes of Meeting of August 17, 2004.

Owosso Historical Commission.  Minutes of Meeting of August 17, 2004.

Paul Hood, Owosso Employees Retirement System Board.  Letter of resignation (read aloud by Mayor Davis).

CITIZEN COMMENTS

There were no citizen comments or council comments.

ADJOURN TO EXECUTIVE SESSION

Motion by Councilperson Owen to adjourn to Executive Session.

Motion supported by Mayor Pro-Tem Osika and concurred in by unanimous vote.

THE CITY COUNCIL ADJOURNED TO EXECUTIVE SESSION AT 8:02 P.M.

THE CITY COUNCIL RETURNED FROM EXECUTIVE SESSION AT 8:30 P.M.

ADJOURNMENT

Motion by Councilperson Ford, supported by Councilperson Owen for adjournment at 8:31 p.m. and concurred in by unanimous vote.

                                                            _____________________________________

John C.M. Davis, Mayor

                                                            _____________________________________

Amy K. Kohagen, Deputy City Clerk