Meeting Minutes for December 3, 2007

OFFICIAL COUNCIL PROCEEDINGS
DECEMBER 3, 2007

A regular meeting of the City Council of the City of Harbor Beach was held on Monday, December 3, 2007 at City Hall. The meeting was called to order at 7:00 p.m. by Mayor Swartz.

Present: Burkhard, Goniewicha, Kleinknecht, Wood and Mayor Swartz
Finance Officer Youatt

Absent: None

It was moved by Burkhard, seconded by Kleinknecht to approve the agenda as submitted. Motion carried. 5 yeas.

Council reviewed minutes of the November 19, 2007 Council meeting. Under Citizen Comment, two items were added to the minutes, including discussion from Mayor Swartz on police car damage and questions on the 2006-07 budget. It was moved by Goniewicha, seconded by Burkhard to approve the minutes as corrected. Motion carried. 5 yeas.

Mayor Swartz stated this meeting should be tape recorded. Youatt stated he wasn’t aware if the City had taping equipment, and, if we did, did not know where it might be located at. Council discussed tape recording future Council meetings.

Bills for November 2007 in the amount of $ 178,650.77 were presented to Council. It was moved by Wood, seconded by Kleinknecht to approve payment of the bills as presented. Motion carried. 5 yeas.

A bill from Wade-Trim in the amount of $ 28,146.00 for water plant operation for November 2007 was presented to Council. It was moved by Kleinknecht, seconded by Burkhard to approve payment of the bill as presented. Motion carried. 5 yeas.

Citizen Comment: Jack Kriete inquired about the bill from Comcast for the Wastewater Plant. Youatt stated the bill was for installation of equipment to provide internet service at the Plant in order to submit reports to the DEQ as required.

Wendal Koehn asked Mayor Pro-Tem Al Kleinknecht why Mayor Swartz should not have an office at City Hall. Kleinknecht asked Wendal if all of the Councilmembers should also have offices at City Hall and that he believed offices for the Mayor and Council at City Hall were not necessary.

Lee Elliot asked why the Fire Chief has an office at City Hall. Youatt replied that the office if primarily for the Zoning Administrator and Safety Officer, who also happens to be the Fire Chief.

Kathleen Holdwick asked Mayor Swartz if he would like an office at City Hall. Mayor Swartz stated he would like an office at City Hall.

Jennifer Kerry asked what the trees were for. Youatt stated they were for planting along local streets.

Robin Rayment asked if the snow could be removed downtown. Youatt stated the DPW crew would come in early during the night to remove the snow.

Brian Hazzard, Nietzke and Faupel, PC CPA, presented the 2006-07 fiscal year audit for the City. Total net assets decreased. The sewer fund and marina fund struggled during the fiscal year. The major and local street funds and the equipment fund have healthy fund balances. Also, the general fund balance, although it decreased during the year, equals 54 % of the budget, which is at a good level. The City’s pension fund is fully funded. During the fiscal year, the Recreation Fund was divided into three funds; Parks and Recreation, North Park and Marina. Deficit elimination plans will need to be submitted to the Department of Treasury for both the North Park and Marina Funds. During the fiscal year, the City refinanced bonds, reducing the interest rate from approximately 5.5 % to 3.5 %, saving the City about $ 500,000 over the life of the bond. New accounting standards will be required in the current fiscal year, including review of the City’s internal financial control system. Following discussion of the audit, it was moved by Goniewicha, seconded by Wood to accept the 2006-07 fiscal year audit as presented. Motion carried. 5 yeas.

OLD BUSINESS: John Ferris, City Attorney, was present to discuss and answer questions regarding the City Charter.

Don Williamson asked Mr. Ferris several questions relating to the City Charter. The first was in regard to hiring family members for City jobs (anti-nepotism) without a unanimous vote of Council. Mr. Ferris stated if this was going on, he would advise the City to stop.

The second question was in regard to appropriating funds on a 3-2 vote of Council. Mr. Ferris stated that if the Charter states this, then Council should follow it.

Another question was in regard to the Mayor being able to vote at Committee meetings of the City. Mr. Ferris stated the Mayor is an ex-officio member of all committees and can vote, unless a City ordinance states otherwise. Mr. Ferris stated he was given a copy of an ordinance regarding the Recreation Commission where the Mayor and Finance Officer are non-voting members of the Commission. However, Mr. Ferris stated Council could amend the ordinance allowing the Mayor to vote, if they chose to do so.

Mr. Williamson asked Mr. Ferris if Council could privatize operation of the Water Plant. Mr. Ferris stated it was his opinion the City could.

Mr. Ferris was asked if the City could purchase property with an installment purchase contract for over 5 years, as the Charter limits such purchases. Mr. Ferris stated that state law allows for Cities to purchase property with installment purchase agreements for up to 15 years.

Mr. Ferris was asked if he was requested to give the City a legal opinion regarding the recent Sanitary Sewer Retention Basin project. He stated he had not.

Mr. Ferris was asked if Council was required to approve all purchases prior to them being made. Mr. Ferris stated that most should be, however some may need to be made in advance. Youatt stated an example would be utility bills, which need to be paid in a timely manner to avoid late fees or penalties.

Mr. Ferris was asked about Resolution # 97-012. Mr. Williamson claimed it was not proper for the Council to take away the duties of the Mayor and give them to the Finance Officer. Mr. Ferris stated the Resolution was legal as it didn’t take away powers from the Mayor; the Council cloned the duties of the Mayor by giving some or all of them to the Finance Officer. Mr. Ferris stated that in his opinion, it was typical of Cities back in 1965 and that era to create such positions as Finance Officers or similar titles, as at that time, most were classified as 4th class cities and could not legally hire a manager. However, most communities at that time realized that a Mayor could have a full-time job and there was a need to hire a full-time manager. Shortly after when 4th class cities were changed to Home Rule Cities, most Cities legally could and did hire City Managers.

Mr. Ferris also stated that the Harbor Beach City Charter of 1965 is one of the older charters around and there have been a number of state laws enacted which make some portions of the Charter obsolete. An example would be that the City Charter was done prior to the Open Meetings Act and Freedom of Information Act. Mr. Ferris stated that common sense needs to be applied to the existing Charter and suggested Council consider starting work on a new City Charter.

Mayor Swartz then entertained questions from the public. Jack Kriete asked if the Mayor is a voting member on all Committees, why can’t he vote on them. Mr. Ferris stated he could on all Committees except the one where Council has passed a City Ordinance prohibiting the Mayor from voting.

Cindy Goniewicha asked if the Mayor and Finance Officer are on committees as ex-officio members, can Mr. Youatt vote. Mr. Ferris stated he could, except on the Recreation Commission.

Jennifer Kerry asked what the penalties are for violating the Charter and what would be done if people have violated the Charter. Mr. Ferris stated penalties are prescribed in the Charter and that it would have to be proved that someone knowingly violated the Charter and it would be difficult to prove.

Wendall Koehn requested that Kathleen Holdwick ask certain questions regarding the Charter, which she did. Mayor Swartz stated all of the questions asked had been answered by Mr. Ferris.

Jennifer Kerry asked if any family members would be hired in the future. Mayor Swartz stated the Charter would be followed.

Mayor Swartz asked if there were any further questions regarding the Charter and there were none.

Finance Officer Youatt stated Mr. Ferris is not consulted or asked to review every contract or expenditure for a number of reasons. Contracts may be simple enough or the dollar amounts are so minimal that review by the City Attorney is not necessary. Cost for the City Attorney’s services are also a budgetary concern. Also, the larger projects which are done by the City and which require significant financing are reviewed by Bond Counsel, not by the City Attorney.

Youatt also supported the idea of working on a new City Charter that the people want. Youatt stated it is up to the people to determine if they want an elected Mayor, who may not have the education, experience and other qualifications to run the City, or if they want to appoint a City
Manager who is a professional in City management and has the appropriate education, experience and qualifications to run the City.

Mayor Swartz stated that he learned much from the discussion this evening regarding the Charter and things will be looked at differently. He stated he believes in the Charter and he votes from his heart and represents the people the best he can. He requested Resolution # 97-012 be put on the agenda for the next Council meeting.

Council reviewed Resolution # 2007-29, “Pawlowski Property Exchange.” The resolution would approve an exchange of property equal in size and value at Davidson Park with Robert and Diana Pawlowski. It was moved by Goniewicha, seconded by Kleinknecht to adopt Resolution # 2007-
29 as presented. Motion carried. 5 yeas.

NEW BUSINESS: Mayor Pro-Tem Kleinknecht presented a proposal to begin landscape planning for the Sanitary Sewer Retention Basin. Bernie and Eric Sweeney, Green Acre Landscaping, would provide landscape drawings with a number of ideas to help generate interest in planning for the facility. The cost is $ 500.00. It was moved by Wood, seconded by Burkhard to approve the proposal as presented. Motion carried. 5 yeas.

Engineer Report: Youatt noted the report dated December 3, 2007 and also stated the next construction meeting is set for Tuesday, December 18th at 4:00 p.m. at City Hall.

Finance Officer Report: A meeting with DTE officials and company representatives interested in bringing a manufacturing facility to Harbor Beach is scheduled this Wednesday. A Negotiating Committee meeting will need to be scheduled soon to move forward with employee contract negotiations. The annual Christmas Parade this past Saturday was a success with a record number of entries this year. Youatt discussed interest in the Harbor Beach Yacht Club to move the old Coast Guard garage building to Waterworks Park so they can renovate it. Noted the great effort of the Murphy Museum volunteer group to maintain and promote the Murphy Museum.

Council Reports: Family Ties program is scheduled for December 16th from 3:00 p.m. to 5:00 p.m. Mayor Swartz stated he presented a Mayoral Proclamation to Elizabeth Buckley to commemorate her 100th birthday. The first Winter Festival will be held on February 2nd.

There being no further business, the meeting was adjourned at 9:25 p.m.

Tom Youatt, City Clerk