Mayor Robert Backon, Mayor Pro Tem Robert Megowen, Councilors Rachel Lankton, Craig Kurtz, Gernot Joachim, and Mike Needham.
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1 REGULAR MEETING HOUGHTON CITY COUNCIL WEDNESDAY, JUNE 22, :30 p.m. CITY COUNCIL CHAMBERS, CITY CENTER PRESENT: Mayor Robert Backon, Mayor Pro Tem Robert Megowen, Councilors Rachel Lankton, Craig Kurtz, Gernot Joachim, and Mike Needham. Also present for the City: City Manager Scott MacInnes, Clerk-Treasurer Kurt Kuure, Director of Public Works Mark Zenner, Police Chief John Donnelly. ABSENT: ALSO PRESENT: REGULAR MEETING: NEW BUSINESS:. Representatives of the Daily Mining Gazette, WMPL, and WCUP. 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 Joachim to appoint the Mayor to the Zoning Board of Appeals as Alternate 1 and the Mayor Pro-Tem to the Zoning Board of Appeals as Alternate 2. Yes: Lankton, Joachim, Backon, Megowen, Kurtz, Needham. The Mayor adjourned the Regular Meeting in order to hold a Zoning Board of Appeals meeting. The Council returned to the Regular Meeting. APPROVAL OF PREVIOUS MINUTES: A motion was made by Lankton and seconded by Megowen to approve the minutes of the June 8, 2011 Regular Meeting as written. Yes: All REVIEW AND 1
2 APPROVAL OF AGENDA: OPPORTUNITY FOR PUBLIC TO ADDRESS COUNCIL: City Manager MacInnes added under Reports MERS Retirement Plan Report and under New Business Item G Approval of Façade Grant Bids. No one addressed the council. PETITIONS AND COMMUNICATIONS: Clerk Kuure read a letter from Lee Hauswirth dated June 22, 2011 resigning from the Houghton City Council effective immediately as he is moving out of the area. Mayor Backon said he is sorry to see Lee go as he added a great deal to the Council. He wished Mr. Hauswirth well. The position will be advertised. The Council has 30 days to appoint a new member. A motion was made by Joachim and seconded by Kurtz to regretfully accept the resignation of Lee Hauswirth and thanked him for his years of service on the Council and his 37 ½ years on the fire department. Mr. Hauswirth also worked over 30 years at the Portage Lake Water and Sewage Authority. Yes: Joachim, Kurtz, Needham, Megowen, Backon, Lankton PUBLIC HEARINGS: Mayor Backon called to order a Public Hearing regarding proposed Ordinance to increase the water and sewer rates by 9%. City Manager MacInnes provided a spreadsheet showing the history of the revenue and expenses in both the water and sewer funds from 2006 to the present. Without the proposed rate increase the sewer fund will have a loss of approximately $145,000 in the year 2011/2012. The increase is needed because our flow at the PLWSA increased over Hancock by 2% last year, and Portage Township s sewer project reduced their flow to us. In the Water Fund our revenue has not increased. We have experienced increased expenses due to utilities and supplies. Mr. MacInnes expects to begin a water/sewer project in which will be financed by Rural Development. His spreadsheet shows the expected bond payments for that project. The Sewer Fund should be able to refinance the present bonds which will reduce the total yearly bond payments. The Water 2
3 Fund bond payments will increase by about $100,000 per year. The last rate increase was in 2006 for six percent. There were no comments from the audience or the Council regarding the proposed ordinance. A motion was made by Joachim and seconded by Lankton to close the Public Hearing. Yes: All REPORTS: Director of Public Works Mark Zenner reported that the street striping is complete on the major highways. He explained an issue at the intersection of Sharon Avenue and M-26. There is no longer room for a car to squeeze through and make a right hand turn down the hill when they are traveling west. We have until July 5 th to let MDOT know what we want. MDOT will begin work in August on Montezuma Avenue. They will mill and pave it as well as fix some problem areas. The painting at Dee Stadium is finished and the project is going well. City Manager MacInnes received a first draft of the proposed locker room arrangement. Mark Zenner explained that the relief ditch was dug for the retention pond problem by the Pilgrim River. The DEQ permit to install the culvert was applied for. Councilor Lankton said she is concerned about the retaining wall on Pewabic Street between Shelden Avenue and Montezuma Avenue by the car wash. Mr. MacInnes explained that it is all on private property and not the responsibility of the City. Mr. Zenner said that he has some drainage issues of concern on Sharon Avenue and Military Road because the culvert is obstructed, and on Dodge Street and Enterprise Drive the pipe is crushed. Mr. Zenner is working on a new radio tower. The Quincy Hoist Association will meet to discuss erecting a tower on the shaft house. Police Chief John Donnelly said the department answered 111 complaints, made 10 misdemeanor arrests, issued 25 civil infraction tickets, and 12 city tickets. The department was quite busy with Bridgefest. The MIP patrol was out during the fireworks which was instrumental in keeping the fireworks a family event. 3
4 The department is currently getting their new weapons and trading in their old weapons. This should not cost the city any money. City Manager MacInnes said there were many good comments about the Arts and Music Festival. People liked the new location. The first downtown concert is June 23 rd. It will be held inside Armando s as it is too cold and damp outside. The concert starts at 7:00 p.m. Mayor Pro Tem Megowen said that the downtown businesses were very happy with the way the police department handled Bridgefest. There were no complaints. City Manager MacInnes received the 2010 Actuarial Report from the MERS Retirement Plan. We are overfunded by $326,000. The actual cost of the plan is 10%. We were sending our full 15.6% to MERS to pay down the unfunded liability. MERS lowered the minimum rate to 5.93%. Mr. MacInnes would like to continue to pay the 15.6% to MERS at this time so that in the future we may be able to increase the COLA. UNFINISHED BUSINESS: NEW BUSINESS:. A motion was made by Lankton and seconded by Megowen to pay the Accounts Payable for June 9, 2011 to June 22, 2011 as presented. Yes: Lankton, Megowen, Needham, Kurtz, Backon, Joachim A motion was made by Lankton and seconded by Joachim to adopt Ordinance Yes; Lankton, Joachim, Backon, Megowen, Kurtz, Needham 4
5 CITY OF HOUGHTON ORDINANCE NO AN ORDINANCE TO AMEND SECTION 86-4 OF THE APENDIX OF THE HOUGHTON CITY CODE, ENTITLED WATER SUPPLY AND SEWAGE DISPOSAL SERVICE CHARGES The City of Houghton Ordains: That Section 86-4 of the appendix of the Houghton City Code be amended as follows: a. The rates for customers shall be $3.15 per 100 cubic feet for water and $6.41 per 100 cubic feet for sewage. This Ordinance was enacted by the City Council of the City of Houghton, Houghton County, Michigan on the 22nd day of June, This Ordinance shall take effect with the August 2011 billing. Robert Backon, Mayor Kurt Kuure, Clerk Proposed Ordinance was introduced. City Manager MacInnes would like to add an item to the Nuisance section of our Ordinances to prohibit the use of outdoor wood boilers. You would also not be able to take an outdoor wood boiler and use it in a garage. The Clerk will set a public hearing for proposed Ordinance on July 13 th at 5:30 p.m. The Council reviewed the proposed Budget Adjustments for the 2010/2011 year. Mr. MacInnes made another adjustment of $1,900 for the wall by the Hellman Transportation Building. He will add $1,900 to contracted services under the Hellman Transportation Building. A motion was made by Lankton and seconded by Megowen to approve the 2010/2011 Budget Adjustments as explained. Yes: Lankton, Megowen, Needham, Kurtz, Backon, Joachim. 5
6 A motion was made by Kurtz and seconded by Joachim to approve a one year extension of the contract with the City of Houghton Police Supervisory Employees Unit of Local #226, Council #25 AFSCME, AFL-CIO until June 30, Yes: Kurtz, Joachim, Lankton, Backon, Megowen, Needham. The Council reviewed a change requested by Rural Development in the Portage Township Sewer Agreement to add a new clause as follows In the event that there is a shortage of sewage treatment capacity, all of the Portage Lake Water & Sewage Authority s customers shall proportionately share in such shortage. A motion was made by Lankton and seconded by Needham to approve the Amendment to the Portage Township Sewer Agreement and authorize the Mayor and Clerk to sign the Agreement. Yes: Lankton, Needham, Kurtz, Megowen, Backon, Joachim The bids for the three downtown façade projects are as follows: Dial Help Romps Building Lunch Bag 609 Shelden 507 Shelden 503 Shelden LJJ Construction $34,098 $67,432 $49,023 J. Clark Const. $21,700 $94,700 $50,590 Northern Dryawall $34,184 $70,513 $56,616 Martineau & Morris $22,600 $74,500 $43,875 A motion was made by Lankton and seconded by Joachim to approve the low bids on the three façade projects as presented and authorize the City Manager to sign the contracts. Yes: Lankton, Joachim, Backon, Megowen, Kurtz, Needham 6
7 Councilor Joachim mentioned a colleague from Lansing stayed in Houghton recently and walked along the waterfront trail and remarked how friendly people in Houghton are. Councilor Kurtz thanked public works for painting the entrance to Portage Cove. Councilor Needham mentioned that there are 1,000 people visiting the area and staying at Michigan Tech next week for different events. A motion to adjourn was made by Lankton and seconded by Needham. Yes: All Motion carried Adjourned 6:50 p.m. Kurt Kuure, Clerk 7
Mayor Robert Backon, Mayor Pro Tem Robert Megowen, Councilors Rachel Lankton, Craig Kurtz, Gernot Joachim, Mike Needham, and Daniel Salo.
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