Mayor Robert Backon, Mayor Pro Tem Robert Megowen, Councilors Gernot Joachim, Craig Kurtz, Mike Needham, and Dan Salo.
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1 REGULAR MEETING HOUGHTON CITY COUNCIL WEDNESDAY, MARCH 26, :30 p.m. CITY COUNCIL CHAMBERS, CITY CENTER PRESENT: Mayor Robert Backon, Mayor Pro Tem Robert Megowen, Councilors Gernot Joachim, Craig Kurtz, Mike Needham, and Dan Salo. Also present for the City: City Manager Eric Waara, Clerk Ann Vollrath, Deputy Clerk Cleo Ruonavaara, Police Chief John Donnelly, and Scott MacInnes. ABSENT: ALSO PRESENT: Councilor Rachel Lankton. A Representative of WOLV, WMPL, Daily Mining Gazette, Mark Kemppainen, Renee Anderton, Joe Dobbs, Creighton Bradley, Kim Stoker, Susie Landers, Mark Mansfield, and other members of the community. REGULAR MEETING: Mayor Backon called to order a Regular Meeting of the Houghton City Council and the Pledge of Allegiance was recited. APPROVAL OF PREVIOUS MINUTES: A motion was made by Megowen and seconded by Needham to approve the minutes of the March 12, 2014 Regular Meeting as written. Yes: All REVIEW AND APPROVAL OF AGENDA: OPPORTUNITY FOR PUBLIC TO ADDRESS COUNCIL: City Manager Waara added Item K under New Business Auditor Engagement. Joe Dobbs and Renee Anderton of the Houghton-Portage Township High School asked the Council for a donation to the senior class alcohol free graduation party in exchange for the class performing a clean-up under the direction of the public works director. A motion was made by Needham and seconded by Salo to make a donation to the senior class in exchange for community service done under the direction of the public works director in the amount of $500 if they have at least 25 volunteers and $750 if they have at least 35 volunteers. The money will be paid out of the TV Franchise Fund. 1
2 Yes: Needham, Salo, Joachim, Backon, Megowen, Kurtz Creighton Bradley, President of the MTU Interfraternity Council, thanked City Manager Eric Waara for speaking to their group on Sunday. He said that Council members are also invited to attend their meetings if they wish. PETITIONS AND COMMUNICATIONS: Clerk Vollrath read a letter from Hannah Lyons of the MTU Women in Engineering Planning Committee thanking Scott MacInnes and Susie Landers for their help with the recent conference held in Houghton. PUBLIC HEARINGS: Mayor Backon called to order a public hearing regarding a MSHDA Rental Rehab application. City Manager Waara explained that the City is preparing an application for a rental rehab grant through MSHDA for the new Roy s Bakery building to construct two new apartments above the bakery. The total project is $99,760. The requested grant amount is $70,000 with the owner s contribution estimated at $29,760. He expects to submit the grant in the next week. WUPPDR is assisting with the preparation of the grant application and will act as the third-party administrator. Kim Stoker of WUPPDR said that to qualify for the grant the owner must rent one of the apartments to people of low to moderate income. Councilor Kurtz asked if there will be an addition to the building and it was explained that the second floor is already shelled in. All of the work will be interior. There were no other comments. A motion to close the public hearing was made by Joachim and seconded by Needham. Yes: All REPORTS: City Manager Waara reported that with the continued cold winter there are 406 residents with their water running. There has been a total of 144 instances of frozen water pipes, and at this time have 21 houses being fed water from 2
3 neighbors. He advised the public to keep letting their water run until the City says to stop. Crews have been fixing water leaks, cold patching, and finishing the floor work at the Carnegie Museum. Elise Nelson just submitted two grant applications to continue rehabilitation work on the building. Mark Zenner would like permission to bring a used pickup and a used roller to sell at auction and see if he can find a crew cab pick-up for the parks crew to use. A motion was made by Joachim and seconded by Kurtz to allow the sale of a used pick-up and roller at auction and to spend the proceeds from the sale plus an amount not to exceed $5,000 to purchase a used crew cab pick-up. The money will come from the equipment fund. Yes: Joachim, Kurtz, Needham, Megowen, Backon, Salo Police Chief John Donnelly said the department answered 75 calls to service, made 5 misdemeanor arrests, and handed out 10 civil infraction tickets and 1 city ticket. Officers attended Below 100 training to limit the amount of officers killed in the line of duty per year. Officer Hill attended street survival training. The department is working with MDOT to start planning for the closures of the Portage Lake Lift Bridge for maintenance which will start in December of City Manager Waara said that MDOT will hold public meetings with both cities this summer to address the upcoming Bridge closures. During the closure period there will be full-time access for most emergency vehicles. Susie Landers reported that the Yummy Bar is now open and brought samples of their candy. They hope to have their liquor license in about a month and hold a grand opening after that. There are some people interested in purchasing the old Kirkish building and Suomi Restaurant. The Keweenaw Young Professionals group may help finish up the work needed in the new Visitors Center. City Manager Waara said the SAW grants that were applied for last fall were given out on a lottery basis until the funds for this round were used. The City did not make the first round, but will probably make the second round of funding. UNFINISHED BUSINESS: 3
4 NEW BUSINESS: A motion was made by Joachim and seconded by Needham to approve the accounts payable for March 13, 2014 to March 26, 2014 as presented. Yes: Joachim, Needham, Kurtz, Megowen, Backon, Salo A motion was made by Joachim and seconded by Salo to adopt Resolution to support the application for a MSHDA Rental Rehab Grant to construct two apartments in the Roy s Pasties and Bakery building at 305 Lakeshore Drive, allow the City Manager to sign the application, and designate WUPPDR as the third-party administrator. Yes: Joachim, Salo, Backon, Megowen, Kurtz, Needham A motion was made by Joachim and seconded by Needham to adopt Resolution to adopt a MSHDA Section 3 Implementation Plan to cover the City of Houghton Rental Rehabilitation Programs. This is a mandatory plan that covers equal opportunity for contracting and housing when using funds through MSHDA. Yes: Joachim, Needham, Kurtz, Megowen, Backon, Salo City Manager Waara reported that this harsh winter has created a deeper frost than we have experienced in many years and there have been many more instances of frozen water pipes. Approximately one-third of the residents are letting their water run to prevent frozen pipes. This also helps keep the City lines from freezing. The current water let-run policy is not designed for this type of a winter. He said that this summer he will work on a let-run policy for the future. He proposed that for this winter we follow our current policy for the months of December, January, and February. For the months of March and April he would 4
5 like to bill the people on the let-run list based on their average water bill. The average water bill will be determined by using the bills for the prior three months. Councilor Joachim pointed out that this policy will be followed only for people currently on the let-run list. A motion was made by Megowen and seconded by Needham to institute a temporary policy that for the months of March and April of 2014 the City will bill the people currently on the let-run list based on their average usage determined by using the usage for the prior three months. Yes: Megowen, Needham, Kurtz, Backon, Joachim, Salo A motion was made by Needham and seconded Megowen to approve a catastrophic water bill for 305 Sixth Street where the outside water spigot froze. The sewer portion of the bill will receive a credit of $ Yes: Needham, Megowen, Kurtz, Backon, Joachim, Salo The Council reviewed the proposed mid-year budget adjustments. Final adjustments will be made in June. A motion was made by Megowen and seconded by Salo to approve the budget adjustments as presented. Yes: Megowen, Salo, Joachim, Backon, Kurtz, Needham. A public hearing of the rental board will be scheduled for Wednesday, April 9, 2014 at 5:30 p.m. to consider an application for a rental license at 918 College Avenue. 5
6 City Manager Waara reported that there is a request from Mark Kemppainen who owns the apartment complex at 7000 Sandpiper Drive to purchase two city-owned pieces of property next to his parcel. Mr. Waara said that this sale of the property was recommended by the Planning Commission. The City has no interest in owning the parcels and will retain utility easements. These parcels are zoned R-1, but it would be very difficult to build a home on them. Mark Kemppainen told the Council that the reason he would like to purchase the land is to move his current tennis court to the new area so that he can erect another apartment building on the spot that the current tennis court sits. He will landscape the property that he purchases. Mr. Kemppainen said that his apartment complex is currently the 9 th highest tax paying property in the City. When he erects the new building, this complex will most likely be the 6 th highest tax paying property. His complex is well kept and he is a good neighbor to the other residents of Sandpiper Drive. A motion was made by Needham and seconded by Salo to authorize the City Manager to obtain an appraisal of the property for a possible sale. Yes: Needham, Salo, Joachim, Backon, Megowen, Kurtz A motion was made by Joachim and seconded by Megowen to adopt Resolution to add East Crestview Drive to the local street system map. Yes: Joachim, Megowen, Needham, Kurtz, Backon, Salo A motion was made by Megowen and seconded by Salo to adopt Resolution to designate City Manager Eric Waara as the street administrator. Yes: Megowen, Salo, Joachim, Backon, Kurtz, Needham 6
7 A motion was made by Joachim and seconded by Needham to designate Joseph Daavettila, CPA as the auditor for the next three audits and authorize the City Manager to sign the engagement letter. The Clerk Polled the Council: Yes: Joachim, Needham, Kurtz, Megowen, Backon, Salo A motion to adjourn was made by Needham and seconded by Salo. Yes: All Motion carried Adjourned 6:20 p.m. Ann Vollrath, Clerk 7
Mayor Robert Backon, Councilors Gernot Joachim, Mike Needham, and Dan Salo.
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