Mayor Robert Backon, Mayor Pro Tem Robert Megowen, Councilors Rachel Lankton, Craig Kurtz, Gernot Joachim, Mike Needham, and Daniel Salo.
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1 REGULAR MEETING HOUGHTON CITY COUNCIL WEDNESDAY, JULY 27, :30 p.m. CITY COUNCIL CHAMBERS, CITY CENTER PRESENT: Mayor Robert Backon, Mayor Pro Tem Robert Megowen, Councilors Rachel Lankton, Craig Kurtz, Gernot Joachim, Mike Needham, and Daniel Salo. Also present for the City: City Manager Scott MacInnes, Clerk-Treasurer Kurt Kuure, Police Chief John Donnelly. ABSENT: ALSO PRESENT: REGULAR MEETING: APPROVAL OF PREVIOUS MINUTES:. Representatives of the Daily Mining Gazette, WMPL, and WCUP, and Joan Nelson. Mayor Backon called to order a Regular Meeting of the Houghton City Council and the Pledge of Allegiance was recited. A motion was made by Lankton and seconded by Needham to approve the minutes of the July 13, 2011 Regular Meeting as written. Yes: All REVIEW AND APPROVAL OF AGENDA: OPPORTUNITY FOR PUBLIC TO ADDRESS COUNCIL: No changes were made to the Agenda. No one addressed the Council. PETITIONS AND COMMUNICATIONS:. PUBLIC HEARINGS: Mayor Backon called to order a Public Hearing regarding proposed Ordinance City Manager MacInnes explained that there are some fees that he would like to increase for water and sewer to reflect actual costs. The fee for a residential 1
2 water hook-up will increase from $700 to $1200, and a commercial hook-up will increase from $750 to $1,250. These increases are necessary because of the increase in supplies in the water fund, especially the increase in the cost of pipe. Water turn-on and turn-off fees will increase from $60 to $75 and any hydrant hook-ups for construction will increase from $100 to $150. There were no comments from the public. A motion was made by Joachim and seconded by Lankton to close the Public Hearing. Yes: All REPORTS: City Manager MacInnes reported that the water and sewer loans with Rural Development are moving at a fast pace. They will provide the City enough money to refinance the previous downtown project as well as finance additional water and sewer work. The water fund will receive a loan of $4,148,000 at 2.5% interest which will pay off the $842,000 loan for the downtown work, and the remainder will be used for repairs to the existing system. The sewer fund will receive a loan for $3,478,000 at 3.5% interest which will pay off the old loan of $1,642,000, and the remainder will be used for repairs to the existing system. There will be $5,142,000 available for repairs and maintenance to the water and sewer systems next spring. City Manager MacInnes informed the Council that the City received the $38,000 grant from the Michigan Energy Efficiency and Conservation Block Grant Program to install LED lights along College Avenue. The City s contribution will be about $7,000 for light fixtures and about $10,000 to install them. The City s match will come from the General Fund. The public works crew is trying to finish the Sharon Avenue sidewalk/bike lane. They are also working on water/sewer work. The rip rap at Nara Park is finished. Crews will work on the culvert by Peepsock next. Police Chief John Donnelly said the department answered 116 complaints, made 15 misdemeanor arrests, issued 32 civil infraction tickets, and 1 city ticket. Chief Donnelly will participate at Camp 911 and put on a presentation regarding Internet Safety. Lieutenant Roberts is coordinating Family Fun Day which will be held on September 1,
3 City Manager MacInnes reported the Signature Building will be paid off in December. The City will receive the $32,500 back from the purchase. Mr. MacInnes said he would like to see both the old Lode Theatre and the old McDonald s buildings sell. He is trying to put together any kind of assistance he can for possible purchasers. The McDonald s building is eligible for a Signature Building grant. The Lode Theatre may be eligible. They are both eligible for façade grants. The Carnegie Museum fundraiser will be held on Saturday, August 6, Councilors Lankton and Megowen have tickets to sell. They are $25 each. City Manager MacInnes presented some banner options to the Council for downtown. The Downtown Business Association would like to have some banners that advertise events, some that highlight the Carnegie Museum and Dee Stadium, and some generic banners that mention shopping and dining. There will be a total of 34 banners up all the time. About one-third of the banners will switch out on a quarterly basis to advertise special events. Mayor Pro Tem Megowen said the downtown businesses will look at options and make a decision at their next meeting. Councilor Lankton liked the blue, green and yellow banners. The Council likes a mixture of colors instead of all one color. They did not like the red banner presented. The Council agreed that the merchants can make the final decision on the colors. Mayor Pro Tem Megowen said the downtown concerts are going great. Tourists and locals are really enjoying them. There is a vacancy on the Planning Commission. An ad was run in the newspaper looking for interest. The deadline to apply is August 8 th so that the Council can appoint someone on the 10 th. UNFINISHED BUSINESS: NEW BUSINESS:. Councilor Lankton asked about a bill for the Hodge Building from Lowe s. Two sliding glass doors were purchased as one of the doors blew out in a recent wind storm and the other is rotting. The expenditure to Pebbles, Inc. was to purchase gravel for the new Sharon Avenue bike trail. A motion was made by Lankton and seconded by Megowen to pay the Accounts Payable for July 14, 2011 to July 27, 2011 as presented. Yes: Lankton, Megowen, Needham, Kurtz, Backon, Joachim, Salo 3
4 A motion was made by Joachim and seconded by Needham to adopt Ordinance Yes: Joachim, Needham, Kurtz, Megowen, Backon, Lankton, Salo CITY OF HOUGHTON ORDINANCE NO AN ORDINANCE TO AMEND SECTION 86 OF THE APENDIX OF THE HOUGHTON CITY CODE, ENTITLED WATER SUPPLY AND SEWAGE DISPOSAL SERVICE CHARGES The City of Houghton Ordains: That Section 86-5 to of the appendix of the Houghton City Code be amended as follows: Sec Standard 1" residential water connection from the main to the property line, not to exceed a distance of fifty (50) feet, and including a cut off and box... $1, Sec Standard 4" residential sewer connection from the main to the property, not to exceed a distance of fifty (50) feet... $ Sec Standard over 1" commercial water connection from the main to the property line, not to exceed a distance of fifty (50) feet, and including a cut off and box... $1, Sec Standard 6" commercial sewer connection from the main to the property, not to exceed a distance of fifty (50) feet... $ Sec Meter testing charge... $60.00 Sec Lawn Sprinkling Water Meter without remote reader... $ Sec Brass Lawn Sprinkling Water Meter with remote reader... $ Sec Turn On Water... $
5 Sec Turn Off Water... $75.00 Sec Hydrant Hook-up (annual)... $ This Ordinance was enacted by the City Council of the City of Houghton, Houghton County, Michigan on the 27th day of July, This Ordinance shall take effect 10 days after enactment. Robert Backon, Mayor Kurt Kuure, Clerk A motion was made by Lankton and seconded by Needham to adopt Resolution Yes: Lankton, Needham, Kurtz, Megowen, Backon, Joachim, Salo Resolution authorizes the Clerk to publish the Notice of Intent to do the water project. This will provide the public with a right of referendum if they are not in favor of the project. A motion was made by Joachim and seconded by Lankton to adopt Resolution Yes: Joachim, Lankton, Salo, Backon, Megowen, Kurtz, Needham Resolution authorizes the Clerk to public the Notice of Intent for the sewer project. A motion was made by Lankton and seconded by Megowen to adopt Resolution Yes: Lankton, Megowen, Needham, Kurtz, Backon, Joachim, Salo 5
6 City Manager MacInnes introduced proposed Ordinance The Planning Commission approved this proposed ordinance at their last meeting. This ordinance will name the Mayor and Mayor Pro Tem as alternates to the Zoning Board of Appeals. The Clerk will set a public hearing for August 24, 2011 at 5:30 p.m. City Manager MacInnes introduced proposed Ordinance which the Planning Commission held a public hearing and approved this at their last meeting. This is a conditional rezoning request for a massage therapy business which will locate at 503 Fourth Street. Mr. MacInnes explained that this proposed ordinance includes a condition that was not included during the planning commission public hearing which the city attorney said could be added for the Council public hearing as it made the ordinance more restrictive. The Clerk will set a public hearing for August 24, 2011 at 5:30 p.m. Police Chief John Donnelly explained the problem with the intersection of Bridge Street and Montezuma Avenue where there are many accidents because drivers cross the two lanes of traffic on Montezuma Avenue. This also creates pedestrian accidents when drivers follow Bridge Street down and around to come out at Quincy Street and Shelden Avenue. There are a lot of pedestrians at this corner who park on the parking deck and cross Shelden Avenue to get to the other side. MDOT has been concerned about this area as well. Chief Donnelly said the proposal is to block off Bridge Street at the intersection with Montezuma Avenue so that you could not cross Montezuma Avenue to access Bridge Street when traveling north. Southbound traffic can pass through, but not northbound traffic. City Manager MacInnes said the MDOT Access Management Team suggested that this change be implemented right after the paving is complete. Barricades will be put in place and signs installed in the next two or three weeks. A motion was made by Megowen and seconded by Joachim to close Bridge Street to northbound traffic from Montezuma Avenue to the parking deck. Councilor Joachim said that he will vote no to this motion because he believes people need to take care when they drive and no matter what the Council does there will still be accidents in this area. Yes: Megowen, Salo, Lankton, Backon, Kurtz, Needham Joachim 6 Rural Development requires the City to have engagement letters with the auditor for the years ending June 30, 2011, 2012, and Joe Daavettila has
7 been doing the audit for many years and Mr. MacInnes does not have any reason to change the auditor. A motion was made by Lankton and seconded by Joachim to appoint Joe Daavettila as the auditor for 2011, 2012, and Yes: Lankton, Joachim, Salo, Backon, Megowen, Kurtz, Needham Dennis Hicks at 1011 Seventh Avenue would like to rent out his basement to another individual and needs a rental license to do this. A Rental Housing Board Public Hearing will be set for August 10, 2011 at 5:30. The Council reviewed the openings on the Council Subcommittees since Lee Hauswirth left. Previous practice is that people with seniority can ask to serve on open subcommittees. Mike Needham is interested in serving on the Finance Committee. All of the other subcommittees that Lee Hauswirth served will be filled by Councilor Salo. Councilor Salo will serve on the Bicycle Committee instead of Councilor Needham. City Manager MacInnes explained that when the Wal-Mart wetland mitigation was performed the City was required to have a $200,000 line of credit for the DEQ in case all of the wetland permit commitments were not fulfilled. That line of credit was with Wells Fargo Bank and it expires in August. The DEQ was notified. The DEQ is asking to extend the line of credit and asked the City to perform an annual report of the wetland mitigation. Since we now bank with River Valley, the line of credit was moved to River Valley Bank at a cost of $3,000. River Valley Bank required the City to purchase and escrow a $200,000 CD at their bank in order to provide a $200,000 line of credit and they are requiring a resolution for this deposit. A motion was made by Lankton and seconded by Megowen to adopt Resolution Yes: Lankton, Megowen, Needham, Backon, Joachim, Salo Kurtz Jack Morris who owns the antique store at 113 Shelden Avenue is asking for a revolving loan of $35,000 to fix the façade. The Council reviewed a picture of the work that is planned. City Manager MacInnes asked that the Council wait two weeks on this loan request because of other possible loan requests. 7
8 City Manager MacInnes will travel to Quebec City, Quebec to make a presentation regarding Winter Cities at the end of September. They will pay his travel expenses. Mayor Backon and the other Councilors welcomed Dan Salo to the Council. Mayor Pro Tem Megowen invited everyone to attend the Fireman s Tournament in Laurium this weekend. A motion to adjourn was made by Lankton and seconded by Joachim. Yes: All Motion carried Kurt Kuure, Clerk 8
Mayor Robert Backon, Mayor Pro Tem Robert Megowen, Councilors Rachel Lankton, Craig Kurtz, Gernot Joachim, and Mike Needham.
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