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ONTONAGON VILLAGE COUNCIL MEETING

HELD AT 5:30 PM ON MONDAY, APRIL 25, 2016

AT 315 QUARTZ STREET, ONTONAGON

PRESENT: President Waldrop, Trustee: E. Marks, J. Hamm, M. Mogan, B. Seid D. Chastan, and J. Erickson, Village Manager

ABSENT: T. Smydra

CALL TO ORDER:

At 5:30 pm the meeting was called to order and the Pledge of Allegiance was led by President Waldrop.

APPROVE AGENDA:

A motion was made by Hamm, second by Seid, (CARRIED) to approve the Agenda with the addition of item E. Waterfront Grant and Agreement Resolution.

ITEMS FROM THE FLOOR: None

APPROVAL OF CONSENT MINUTES OF:

A motion was made by Marks, second by Mogan, (CARRIED) to approve the minutes of the Village Council meeting of April 11, 2016; the minutes of the Marina Commission of April 12, 2016, and the minutes of the Village Council Workshop Special Meeting of April 18, 2016.

REPORT FROM VILLAGE MANAGER – JOSEPH ERICKSON:

1.  Lansing – HB 5578 has been introduced to address the “dark store” issues. The bill requires the Tax Tribunal to use the “highest and best use” standards that property appraisers and assessors use to determine value. The bill also restricts the consideration of deed restrictions intended to protect the Seller’s business interests, such as restricting future competition. The MML will be closely following this bill, since the Michigan Retailers Association will be lobbing to defeat it.

2.  Tax Foreclosure List – I received a list of three properties from the County Treasurer. Two are residential properties at 610 Spar and 513 S. Steel, the other is on River St. adjacent to the old Wagoner’s Restaurant. I will pass that one on to the DDA for consideration since it is in the DDA District.

3.  Village Attorney – Attached is a brief resume of Teddy Baird. He is a semi-retired attorney who practices from an office in his home here in Ontonagon. (He heard on the radio that we would be looking for a new attorney) He would be interested in being legal consul for the Village. If the Council is interested I can invite him to the next meeting.

4.  Sewer Bond Refinancing – Talked with Mr. Traciak last week and he is working up some preliminary options including the use of some reserve funds to buy down the debt. I informed him the Miller-Canfield is our bond attorney (they have provided council to the Village on all of our current loans/debt). In the near future we will have a conference call to review preliminary numbers and identify the best options for the Village. I will keep the Council informed as the process move ahead.

5.  2016 Projects – OHM is locating the sewer manholes with GPS. Coleman Engineering will be surveying N. 7th Street. On Wednesday, the Building Committee will meet with GEI on the Streetlights, Rec Building Lights, Paddlecraft Landing and Marina Dredging projects and getting them rolling. A note on the River Streetlight Project, last year the Village spent $3250 for lights in 1st quarter of 2015 (Jan. Feb. & Mar.), this year we spent $1895 for the same period, a $1355 savings. When I get a chance I will factor out last year’s rate increases, for a true comparison.

6.  Housing Mtg W/ UPEA – On 4/15 I attended a meeting where Ken Dillinger from UPEA met with the Housing Commission to discuss conversion of the units to hot water heating systems. The discussion focused on the sizing of the boilers, how piping could be run and other aspects of the project. The project is feasible with a 15 – 17 year payback. One high-efficient boiler and water maker would be needed for each of the 15 housing units. The existing space in the utility rooms is adequate for the installation. In order to fund this project the HC would first want to receive approval from HUD that would freeze their subsidy payments at the current levels. Otherwise HUD would reduce the subsidy because of cost savings, making it difficult to repay the loans. The project could be funded thru HUDs CFFP (capital fund financing program). The CFFP would be repaid thru a reduction in the CFP (if the subsidy is maintain, the cost savings would off-set the CFP loss). Ken provided a comparison with the Soo HC’s similar units and the electric cost could be cut by nearly 75%. With the use of NG for heating, utility cost would likely drop by 40% or more. It may take two years to secure subsidy and the funding, but heating with natural gas will open up more options in the future.

7.  Housing Commission Director’s Report – I need to clarify some erroneous statements. In her March report, the Director states that the heating system has always been electric and that HUD owns the property “out right”. The original plans, including those at her office, show hot water heat with fuel oil as the energy source. The fuel oil boilers were likely replaced after the 1973 oil embargo when the price of oil tripled. As for the ownership of the property, the tax rolls and the deeds state the Village of Ontonagon is the owner. From the early documents I’ve seen it’s clear that Cane Court is owned by the Village and managed by the Housing Commission that is appointed by the Village Council. HUD does not own or operate the Village Housing Complex.

8.  Mi Trale Ad - Attached is the ad approved by the Rec Commission for the Mi Trale Guide.

9.  Other Updates – The crew has been busy fixing potholes and cleaning up on River Street. They rebuilt one of the launch docks for the Marina.

10.  Meetings Attended – 4/12 Marina Commission, 4/15 Housing Commission – UPEA, 4/18 Council Grant Writer Workshop, 4/20 Rec Commission, 4/22 Labor Day Committee

A motion was made by Seid, second by Chastan, (CARRIED) to accept and place on file the Manager’s report.

NEW BUSINESS:

A.  VILLAGE COUNCIL MEETING TIME CHANGE

A motion was made by Seid, second by Mogan, (CARRIED) to change the Village Council meeting time due to the Village Housing unwilling to change their monthly meeting that causes conflict with the Village Council fiancé committee. The Village Council meetings will be changed to 6:00 p.m. on the 2nd and 4th Monday of each month effective May 9, 2016.

B.  PURCHASE LAWN MOWER

A motion was made by Mogan, second by Hamm, (CARRIED) to approve the purchase of a 2016 Gravely Pro-Turn zero turn mower with a 60 inch deck from Pat’s Auto and Sport Center for $10,800.00.

ROLL CALL:

AYES: All present at the meeting

Nays: None

ABSENT: Smydra

C.  SPRING MDOT MEETING

The Spring MDOT meeting is scheduled for May 9, 2016 at 1:00 p.m.in Houghton. In the past 3 council members have attended.

A motion was made by Chastan, second by Seid, (CARRIED) approve the travel expenses for Councilmen Hamm, Smydra and Mogan to attend the Spring MDOT meeting in Houghton, MI on May 9, 2016 at 1:00 p.m. at the Houghton City Hall.

ROLL CALL:

AYES: All present at the meeting

Nays: None

ABSENT: Smydra

D.  AUDITOR CONTRACT RENEWAL

A motion was made by Marks, second by Mogan, (CARRIED) to renew Susan Sanford, CPA PLLC auditor contract for a 3 year term not to exceed $10,250.00 for each of the next three years.

ROLL CALL:

AYES: All present at the meeting

Nays: None

ABSENT: Smydra

E.  WATERWAY GRANT AND AGREEMENT RESOLUTION

A motion was made by Hamm, second by Chastan, (CARRIED) to approve the Waterway Grant and approve the Agreement Resolution 2016-05.

ROLL CALL:

AYES: All present at the meeting

Nays: None

ABSENT: Smydra

OTHER BUSINESS:

The Treasurer suggested we include the DDA and the Village Housing Minutes in the Consent Agenda for approval of their minutes.

A motion was made by Hamm, second by Seid, (CARRIED) to approve the DDA and Village Housing Meeting minutes to be included in the Village Council Consent Agenda.

Matt Wiesen had sent a letter to President Ken Waldrop about his property concerns. The Building Committee will review the letter and get back to Mr. Wiesen. The report of the Building Committee will be reviewed on the May 9, 2016 agenda.

ADJOURN:

At 6:12 p.m. a motion was made by Marks, second by Chastan, (CARRIED) to adjourn the meeting.

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Marcia Aho-Black - Village Clerk Date approved