PRESIDING OFFICER:             MAYOR PRO-TEM SUSAN J. OSIKA

OPENING PRAYER:                 REV. JOHN WALWORTH, CHAPLAIN

                                                MEMORIAL HEALTHCARE CENTER

PLEDGE OF ALLEGIANCE:      BARBARA CLATTERBAUGH

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

ABSENT:                                  Mayor John C. M. Davis.

APPROVE AGENDA    

Motion by Councilperson Robertson to approve the Agenda as presented with the correction of the amount of Consent Agenda No. 7 to $16,887.60.  Motion supported by Councilperson Ford and concurred in by unanimous vote.

APPROVE MINUTES – REGULAR MEETING OF OCTOBER 18, 2004

Motion by Councilperson Ford to approve the Minutes of the Regular Meeting of October 10, 2004 as presented.  Motion supported by Councilperson Robertson and concurred in by unanimous vote.

Mayor Pro-Tem Osika read the Rules for Addressing the City Council.

PROCLAMATIONS / SPECIAL PRESENTATIONS

Presentation-Paul K. Hood.  Mayor Pro-Tem Osika presented Paul K. Hood with a plaque for his years of service as member and chairman of the City of Owosso Employees Retirement System Board of Trustees.  The City Hall Conference Room was dedicated as the Paul K. Hood Conference Room.

CITIZEN COMMENTS

Mike Cline, 411 North Chipman Street, commented regarding AO Smith Company and people losing their jobs and machinery going to Mexico.  He commented regarding Mr. Hathaway’s previous statement that the City does on-site inspections.

Kirk Peters, 1804 South M-52, commented regarding his opposition to Charter Communications charges for cable television service.

Councilperson Owen commented that a light in the traffic signal at Chipman and Stewart Street is burned out.

Councilperson Robertson commented regarding cable television.  There was discussion regarding more than one provider in a locality.  Councilperson Owen commented in support of Charter Communications.

City Manager Guetschow asked Philip Hathaway to respond to Mr. Cline’s comments.

CONSENT AGENDA

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

Conduct First Reading and Set Public Hearing-Ordinance Amendment

The First Reading on the proposed ordinance amendment was held.

A public hearing was scheduled for November 15, 2004 to receive citizen comment regarding proposed ordinance amendments to Chapter 2, Administration, Article VII, Employees’ Municipal Pension, Sections 2-403, Board of trustees, and Section 2-204, Trustees’ term of office—oath, of the Code of Ordinances of the City of Owosso, Michigan as follows:

AN ORDINANCE TO AMEND CHAPTER 2, ADMINISTRATION, ARTICLE VII, EMPLOYEES’ MUNICIPAL PENSION, SECTIONS 2-403, BOARD OF TRUSTEES, AND SECTION 2-204, TRUSTEES’ TERM OF OFFICE—OATH, OF THE CODE OF ORDINANCES OF THE CITY OF OWOSSO, MICHIGAN.

THE CITY OF OWOSSO ORDAINS:

Section 1. That Chapter 2, Administration, Article VII, Employees’ Municipal Pension, Sections 2-403, Board of trustees, and Section 2-204, Trustees’ term of office—oath, of the Code of Ordinances of the City of Owosso, Michigan, shall be and the same is hereby amended to read as follows:

Sec. 2-403. Board of trustees.

            (a)        There is hereby created a board of trustees in whom is vested the general administration, management, and responsibility for the proper operation of the retirement system and for making effective the provisions of this article. The board shall consist of seven (7) trustees as follows:

            (1)        The mayor;

            (2)        A councilman who is not eligible to participate in the retirement system as a member or retirant;

            (3)        A citizen who has the qualifications required by the charter for holding an elective city office and who is not eligible to participate in the retirement system as a member or retirant, to be appointed by the council;

            (4)        A policeman member to be chosen by the policemen members;

            (5)        A fireman member to be chosen by the firemen members, and

            (6)        Two (2) general city members:  One (1) general city member to be chosen by the non-unionized general city members and one (1) general city member to be chosen by the unionized general city members.

            (b)        The choosing of the trustees provided for in paragraphs (4), (5), and (6), above, shall be held in the month of May in each year under such rules and regulations as the board shall, from time to time, adopt.

(Ord. No. 638, § 1, 9-15-03)

Sec. 2-404. Trustees' terms of office--Oath.

The regular term of office of the trustees provided for in section 2-403 (a) sub-paragraphs  (3), (4), (5), and (6) shall be for four years. The term of office shall expire at the end of each four-year period subsequent to July 1, 1965, for the police department trustee; July 1, 1966, for a general city employee trustee; July 1, 1967, for the fire department trustee; and July 1, 1968 for the second general city employee trustee. The non-employee trustee shall serve at the pleasure of the council. Each trustee shall, within ten days after he has been appointed or chosen, as the case may be, take the oath of office which shall be administered by the clerk.

(Ord. No. 638, § 1, 9-15-03)

Section 2. This ordinance shall take effect 20 days after its adoption.

Section 3. This ordinance may be purchased or inspected in the City Clerk’s office Monday through Friday between the hours of 9:00 a.m. and 5:00 p.m.

Conduct First Reading and Set Public Hearing-Ordinance Amendment

The First Reading on the proposed ordinance amendment was held.

A public hearing was scheduled for December 6, 2004 to receive citizen comment regarding proposed ordinance amendments to Chapter 34, Utilities and Service, by adding Article VII, Gas Franchise, to the Code of Ordinances of the City of Owosso, Michigan as it relates to franchise agreement with Consumers Energy, as follows:

AN ORDINANCE TO ADD ARTICLE VII GAS FRANCHISE TO CHAPTER 34, UTILITIES AND SERVICES, OF THE CODE OF ORDINANCES OF THE CITY OF OWOSSO, MICHIGAN GRANTING TO CONSUMERS ENERGY COMPANY, ITS SUCCESSORS ANDASSIGNS, THE RIGHT, POWER AND AUTHORITY TO LAY, MAINTAIN AND OPERATE GAS MAINS, PIPES AND SERVICES ON, ALONG, ACROSS AND UNDER THE HIGHWAYS, STREETS, ALLEYS, BRIDGES, WATERWAYS, AND OTHER PUBLIC PLACES, AND TO DO A LOCAL GAS BUSINESS IN THE CITY OF OWOSSO, SHIAWASSEE COUNTY, MICHIGAN, FOR A PERIOD OF THIRTY YEARS.

THE CITY OF OWOSSO ORDAINS:

Section 1. Article VII Gas Franchise shall be and the same is hereby added to Chapter 34, Utilities and Services, of the Code of Ordinances of the City of Owosso to read as follows:

ARTICLE VII. GAS FRANCHISE

Sec. 34-300. Grant, term. The City of Owosso, Shiawassee County, Michigan hereby grants to the Consumers Energy Company, a Michigan corporation, its successors and assigns, hereinafter called “Grantee,” the right, power and authority to lay, maintain and operate gas mains, pipes and services on, along, across and under the highways, streets, alleys, bridges, waterways, and other public places, and to do a local gas business in the city of Owosso, Shiawassee County, Michigan for a period of thirty years.

Sec. 34-301. Consideration. In consideration of the rights, power and authority hereby granted, said Grantee shall faithfully perform all things required by the terms hereof.

Sec. 34-302. Conditions. No highway, street, alley, bridge, waterway or other public place used by said Grantee shall be obstructed longer than necessary during the work of construction or repair, and shall be restored to the same order and condition as when said work was commenced. All of Grantee’s pipes and mains shall be so placed in the highways and other public places as not to unnecessarily interfere with the use thereof for highway purposes.

Sec. 34-303. Hold harmless. Said Grantee shall at all times keep and save the City free and harmless from all loss, costs and expense to which it may be subject by reason of the negligent construction and maintenance of the structures and equipment hereby authorized. In case any action is commenced against the City on account of the permission herein given, said Grantee shall, upon notice, defend the City and save it free and harmless from all loss, cost and damage arising out of such negligent construction and maintenance.

Sec. 34-304. Extensions. Said Grantee shall construct and extend its gas distribution system within said City and shall furnish gas to applicants residing therein in accordance with applicable laws, rules and regulations.

Sec. 34-305. Franchise not exclusive. The rights, power and authority herein granted are not exclusive. Either manufactured or natural gas may be furnished hereunder.

Sec. 34-306. Rates. Said Grantee shall be entitled to charge the inhabitants of said City for gas furnished therein, the rates as approved by the Michigan Public Service Commission, to which Commission or its successors authority and jurisdiction to fix and regulate gas rates and rules regulating such service in said City, are hereby granted for the term of this franchise. Such rates and rules shall be subject to review and change at any time upon petition therefor being made by either said City, acting by its City Council, or by said Grantee.

Sec. 34-307. Revocation. The franchise granted by this ordinance is subject to revocation upon sixty (60) days written notice by the party desiring such revocation.

Sec. 34-308. Michigan Public Service Commission; jurisdiction. Said Grantee shall, as to all other conditions and elements of service not herein fixed, be and remain subject to the reasonable rules and regulations of the Michigan Public Service Commission or its successors, applicable to gas service in said City.

Sec. 34-309. Repealer. This ordinance, when accepted and published as herein provided, shall repeal and supersede the provisions of a gas ordinance adopted by the City on December 16, 1974 entitled:

AN ORDINANCE, granting to CONSUMERS POWER COMPANY, its successors and assigns, the right, power and authority to lay, maintain and operate gas mains, pipes and services on, along, across and under the highways, streets, alleys, bridges and other public places, and to do a local gas business in the CITY OF OWOSSO, SHIAWASSEE COUNTY, MICHIGAN, for a period of thirty years.

and amendments, if any, to such ordinance whereby a gas franchise was granted to Consumers Energy Company.

Sec. 34-310. Sale or assignment. This franchise may not be sold or assigned without the written consent of the City.

Sec. 34-311. Compliance with Charter and Ordinances. During the term of this franchise, Grantee shall comply with all applicable City Charter provisions and ordinance.

Sec. 34-312. Effective date. This ordinance shall take effect twenty (20) days after the date of its adoption; provided, however, it shall cease and be of no effect after thirty (30) days from its adoption unless within said period Grantee shall accept the same in writing filed with the City Clerk. Upon acceptance and publication hereof, this ordinance shall constitute a contract between said City and said Grantee.

Section 2. Copies of this ordinance may be purchased from the City Clerk during regular business hours.

Change Order.  Authorized Change Order No. 1 to agreement with Consumers Energy to provide electrical service underground across North Gould Street in the amount of $2,484.08 for the Phase One, Osburn Lakes Site Condominium Project.

Change Order.  Authorized Change Order No. 1 increasing the amount of the bid award (purchase order) for 22A gravel to Constine, Inc. by $18,821.93 for additional 22A gravel needed for the Phase One, Osburn Lakes Site Condominium Project.

Contract Payment.  Authorized Final Payment to Constine, Inc. in the amount of $43,526.93 for 22A Gravel for the Phase One, Osburn Lakes site Condominium Project.

Contract Payment.  Authorized Progress Payment No. 5 to Constine, Inc. in the amount of $76,819.79 for work completed on the 2004 Street Program.

Contract Payment.  Authorized Progress Payment to Sascon, Inc. in the amount of $16,887.60 for work done on the Elevator Installation Project at 104-108 North Washington Street.

Contract Payment.  Authorized Final Payment to Highway Maintenance and Construction Company in the amount of $9,761.33 for work done on the 2004 Sealcoat and Slurry Seal Program.

Bid Award.  Accepted low bid of Space, Inc. for the purchase and installation of office furniture for the Police Department in the amount of $27,465.47.

Bid Award.  Accepted bid of West Shore Fire, Inc. for self-contained breathing apparatus and related accessories in the amount of $111,315.00 and waived irregularities in bidding process.

Traffic Control Order No. 1139.  Authorized Traffic Control No. Order 1139 for a stop sign on westbound Grover Street at South Hickory Street.

Traffic Control Order No. 1140.  Authorized Traffic Control Order No. 1140 for a stop sign on eastbound Francis Street at South Walnut Street.

Warrant No. 302.  Accepted Warrant No. 302 as follows:

Motion supported by Councilperson Robertson.

Roll Call Vote.

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

NAYS:              None.

ABSENT:          Mayor John C.M. Davis.

ITEMS OF BUSINESS

CONSUMERS ENERGY EASEMENT REQUEST

Motion by Councilperson Owen to authorize the request from Consumers Energy for an easement across the city-owned parking lot described as the South 15 feet of the North ½ of Lots 12 and 13, except the East 22 of Lot 13, of Erastus Barnes’ Addition to the City of Owosso, being a part of the Northwest ¼ of Section 24, Township 7 North, Range 2 East to install gas service to the property located at 1003 West Main Street as follows:

EASEMENT FOR GAS PIPELINE

Form 426 4-2003

06028426

Parties: “Owner” is City of Owosso.

Owner’s address is:  301 West Main Street, Owosso, MI 48867

“Consumers” is CONSUMERS ENERGY COMPANY, a Michigan corporation.   Consumer’s address is One Energy Plaza, Jackson, Michigan 49201.

Grant of Easement.  For good and valuable consideration, Owner grants Consumers a permanent easement for a gas pipeline in, under, and across a portion of “Owner’s Land”, called the “Easement Area”.  Owner’s Land is in the City of Owosso, County of Shiawassee, and State of Michigan and is described in the attached Exhibit A.  The Easement Area is within Owner’s Land and is described in the attached Exhibit B.

Purpose.  The purpose of the easement is to grant Consumers the right to enter Owner’s Land to construct, operate, inspect, maintain, replace, improve, remove, and enlarge a gas pipeline and lateral pipelines on the Easement Area.  The gas pipelines may consist of valves, connections, and accessories for transmitting and distributing natural gas.

Trees and Other Vegetation.  Consumers shall have the right from time to time hereafter to enter Owner’s Land to trim, cut down, and other remove and control any trees, brush, roots, and other vegetation, inside the Easement Area, that Consumers believes may interfere with the construction, operation, and maintenance of the pipelines.

Buildings/Structures:  Owner shall not:  1) locate any buildings, structures, septic systems, drain fields, ponds, or swimming pools with the Easement Area, 2) plant any trees within the Easement Area, or 3) change the ground elevation within the Easement Area.  If Owner violates this provision, Owner shall reimburse Consumers for any expenses Consumers incurs correcting the violation.  If Consumers corrects the violation by relocating a pipeline on Owner’s Land, this easement shall automatically apply to such relocated line.

Exercise of Easement.  Grantee’s nonuse or limited use of this Easement shall not preclude Grantee’s later use of this Easement to its full extent.

Successors:  This easement shall bind and benefit Owner’s and Consumers’ respective heirs, successors, lessees, licensees, and assigns.

Exhibit A

Owner’s Land

The South 15 feet of the North ½ of Lots 12 and 13, except the East 22 feet of Lot 13, of Erastus Barnes’ Addition to the City of Owosso, being a part of the Northwest ¼ of Section 24, Township 7 North, Range 2 East.

Exhibit B

Easement Area

All that part of the above described Owner’s Land.

Motion supported by Councilperson Robertson.

Roll Call Vote.

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

NAYS:              None.

ABSENT:          Mayor John C.M. Davis

SODIUM HYPOCHLORITE (CHLORINE) SUPPLY CONTRACT-JONES CHEMICAL

Motion by Councilperson Ford to reject price increase in bid price of Jones Chemical for Sodium Hypochlorite (Chlorine) for the fiscal year 2004-2005 and to further authorize notice to Jones Chemical that the price change violates the contractual agreement, that the City will purchase sodium hypochlorite from alternate suppliers for the balance of the fiscal year, and that the City holds open any available option under the joint purchase agreement and state law for recovery from Jones Chemical of differential costs incurred by the City in getting deliveries of sodium hypochlorite from alternate suppliers.

Motion supported by Councilperson Robertson.

Roll Call Vote.

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

NAYS:              None.

ABSENT:          Mayor John C.M. Davis

CABLE TELEVISION FRANCHISE EXTENSION

Motion by Councilperson Owen to adopt a resolution extending the franchise term with Charter Communications for cable television service in the City of Owosso as follows:

            FRANCHISE EXTENSION AGREEMENT

WHEREAS, CC VIII Operating LLC, d/b/a Charter Communications (“Charter”) currently holds a cable franchise with Owosso City, Shiawassee County, (“City”) that was entered into by and between Owosso City and WestMarc Development Joint Venture d/b/a TCI Cablevision of Greater Michigan, Inc. dated November 1, 1997 to which Charter is the successor; and

WHEREAS, Charter’s franchise with City expires on November 1, 2004; and

WHEREAS, the parties continue to reserve all rights under the formal procedures of section 626 of Title VI of the Communications Act of 1934, as amended, and do not waive any rights related thereto; and

WHEREAS, the parties mutually desire to extend the franchise agreement through October 31, 2006 with the terms and conditions of the franchise remaining in full force and effect throughout that entire term, subject to applicable law; and

WHEREAS, it is in the public interest to extend the current franchise for an additional period of time so that cable service to the public will not be interrupted;

NOW, THEREFORE, the parties agree that the franchise of Charter shall be extended for two (2) years through October 31, 2006.

Motion supported by Councilperson Sumrack.

Roll Call Vote.

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

NAYS:              None.

ABSENT:          Mayor John C.M. Davis.

STRATEGIC COMMUNICATIONS PLAN OUTCOME MEASURE

Motion by Councilperson Ford to approve the proposed measure for determining the success of the desired outcome of the Strategic Communications Plan as follows:

CITY OF OWOSSO

STRATEGIC INITIATIVES

Mission:  To contribute to the framework of community life in Owosso by providing vital municipal programs, services and infrastructure.

Motion supported by Councilperson Robertson.

Roll Call Vote.

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

NAYS:              None.

ABSENT:          Mayor John C.M. Davis

AMENDMENT-COUNCIL RULES OF PROCEDURE

Councilperson Sumrack commented regarding his reasons for requesting the time change.  He recommended that the first public comment be four minutes for each person and the public hearing and second public comment be left at two minutes.  There was general discussion regarding the proposed change.

Motion by Councilperson Sumrack to adopt an amendment to Council Rules of Procedure regarding time allowed for citizen comments as follows:

     5.     Each person wishing to address the City Council shall be afforded one opportunity of up to four (4) minutes duration during the first occasion provided for citizen comments, one opportunity of up to two (2) minutes duration during the last occasion provide for citizen comments and one opportunity of up to two (2) minutes duration during each public hearing; provided, however, that comments made during public hearings shall be relevant to the subject for which the public hearings are held.

Motion supported by Councilperson Robertson.

Roll Call Vote.

AYES:              Councilpersons Horvath, Ford, Sumrack, Owen, and Robertson.

NAYS:              Mayor Pro-Tem Osika.

ABSENT:          Mayor John C.M. Davis.

COMMUNICATIONS

William C. Brown, City Attorney.  McLaren Regional Medical Center v. The City of Owosso – status of appeal.

Shiawassee Area Transportation Agency.  Notice of Public Hearing.

Michael T. Compeau, Public Safety Director.  September 2004 Fire Department Report.

CITIZEN COMMENTS

Shelva Cebulski, 1243 Marion Street, questioned the status of the M-52 bridge project.

Kirk Peters, 1804 South M-52, commented further Charter Communications surcharges.

City Engineer Baker commented regarding the bridge project and delays in finishing the cement work.  Councilperson Horvath questioned the repaving of Water Street this year.  Councilperson Robertson questioned the effect on the Middle School operations during the repaving.

AJOURNMENT

Motion by Councilperson Robertson for adjournment at 8:18 p.m., supported by Councilperson Owen and concurred in by unanimous vote.

_____________________________________

Susan J. Osika, Mayor Pro-Tem

                                                            _____________________________________

Gail L. Schultz, City Clerk