OFFICIAL COUNCIL PROCEEDINGS
DECEMBER 20, 2004

A regular meeting of the City Council of the City of Harbor Beach was held on Monday,
December 20, 2004 at City Hall. The meeting was called to order at 1:30 p.m. by Mayor Ramsey.

Present: Ahrens, Goniewicha, Schelke, Semp and Mayor Ramsey
Finance Officer Youatt and Engineer Bergdolt

Absent: None

There were no corrections or additions to the agenda.

It was moved by Ahrens, seconded by Goniewicha to approve the minutes of the December 6, 2004 Council meeting as presented. Motion carried. 4 yeas.

A bill from MDOT for the M25 project in the amount of $ 7,777.86 was presented to Council. It was moved by Ahrens, seconded by Semp to approve payment of the bill as presented. Motion
carried. 4 yeas.

Mayor Pro-Tem Schelke arrived.

Citizen Comment: None

Bryan Hazzard, Nietzke & Faupel, PC, CPA, the City’s auditing firm, presented to Council the
2003-04 fiscal year audit. A major change in the audit this year is it utilized for the first time the
GASB 34 accounting model. This entailed substantially more work to complete than previous audits and is the reason why it is being presented in December rather than in October or November as is the usual time.

Mr. Hazzard discussed the Management Discussion and Analysis section, which is a new requirement under GASB 34. Financial highlights included that next assets exceeded liabilities by
$ 15,179,979 at the end of the fiscal year. Also, total net assets declined by $ 491,633. Net assets for the General Fund increased by $ 51,150 and also increased by $ 51,325 in Other Governmental Funds (Major Streets and Trunklines, and Local Streets). The Sewer Fund continues in a deficit situation in retained earnings of $ 243,628. Mr. Hazzard also reviewed the
Notes to the Financial Statements. Following presentation of the audit, it was moved by Schelke, seconded by Ahrens to accept the Fiscal Year 2003-04 Audit as presented and to authorize delivery of same to the State Department of Treasury and any other financial institution that requires same. Motion carried. 5 yeas.

OLD BUSINESS: None

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DECEMBER 20, 2004

NEW BUSINESS: Resolution # 2004-28, “Sewer Fund - Deficit Elimination Plan,” was presented to Council. The Resolution would approve a plan and budget to eliminate the deficit in retained earnings in the Sewer Fund in the amount of $ 243,628. It was moved by Schelke, seconded by Semp to adopt Resolution # 2004-28 as presented. Motion carried. 5 yeas.

The Harbor Beach Maritime Festival Committee has reviewed 2 proposals received for promoting the jet ski event as part of the 2005 Maritime Festival. Following their review of the proposals, the Committee recommends Council award the event to Hammertime Promotions at a cost of
$ 3,500. It was moved by Semp, seconded by Ahrens to award the jet ski event for the 2005 Maritime Festival to Hammertime Promotions as presented and to authorize the Finance Officer to execute the agreement. Motion carried. 5 yeas.

Council reviewed a proposal from John E. Green Company to replace two return sludge thickener screens at the Wastewater Treatment Plant for a cost of $ 19,011. It was moved by Goniewicha, seconded by Ahrens to approve the proposal as submitted. Motion carried. 5 yeas.

Council reviewed a proposal received from Recreation Director Wruble to sell the 4110 model John Deere Tractor with deck and loader and bucket for $ 13,800 and to authorize purchase of a new model from J & D Implement Inc., Bad Axe, Michigan, for $ 14,653.23. It was moved by Schelke, seconded by Semp to approve the proposal as submitted. Motion carried. 5 yeas.

Council reviewed a request from the Recreation Commission to appropriate $ 2,663 to go with a match grant received from the Harbor Beach Rotary Club in the amount of $ 2,500 towards the purchase of a 12 unit fitness course for North Park from Jack Golden Associates for $ 5,163.
It was moved by Ahrens, seconded by Semp to approve the request as presented. Motion carried.
5 yeas.

Engineer Report: Reported on a preliminary meeting with DEQ held this morning regarding the proposed Sanitary Sewer Retention Basin project in conjunction with the Administrative Consent Order the City has with DEQ. DEQ officials were receptive to plan ideas presented by Wade-Trim. A follow-up letter will be sent with copy to the City. Soil borings have been completed at the proposed site. This information will allow for accurate design of the retention basin.

Finance Officer Report: With completion of the audit, all of the appropriate financial information will be distributed to the Department of Treasury, Financial consultants and other appropriate parties. Thanked Councilmembers Goniewicha and Ahrens and Mayor Ramsey for their excellent and dedicated service to the citizens of Harbor Beach. Was a great pleasure working with all.

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DECEMBER 20, 2004

Council Reports: Mayor Ramsey thanked Finance Officer Youatt for his work for the City and also thanked Council members for their work as well.

There being no further business, the meeting was adjourned at 2:42 p.m.

Tom Youatt, City Clerk