Meeting Minutes for June 4, 2007

OFFICIAL COUNCIL PROCEEDINGS

JUNE 4, 2007

A regular meeting of the City Council of the City of Harbor Beach was held on Monday, June 4, 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/Clerk Youatt

Absent: None

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

It was moved by Burkhard, seconded by Kleinknecht to approve the minutes of the May 21, 2007 Council meeting as presented. Motion carried. 5 yeas.

It was moved by Wood, seconded by Kleinknecht to approve minutes of the May 24, 2007 and June 1, 2007 Water Committee meetings as presented. Motion carried. 5 yeas.

Bills for May 2007 in the amount of $ 222,787.16 were presented to Council. It was moved by Burkhard, seconded by Kleinknecht to approve payment of the bills as presented. Motion carried. 5 yeas.

Citizen Comment: Barb Lemanski inquired about garage sales and permits for same. Youatt explained City policy and past history of Chamber of Commerce sponsorship of Memorial Day and Labor Day weekend events. Also inquired about cost for City health insurance.

Bill Duerr stated that for a few years, the "Harbor Beach Times" took over sponsorship of the garage sales events.

Jack Kriete stated support for garage sale events as it brings tourists to the community.

Lee Elliott inquired about work performed by the DPW crew as it related to staffing for certain jobs. Youatt explained that tasks assigned to crews was up to DPW Foreman Shedd.

Jennifer Hornbostel commented that the trash receptacles downtown have been full for some time now. Youatt stated that the trash hauling contractor has been contacted and will make sure these trash receptacles are picked up.

Mayor Swartz opened a public hearing at 7:20 p.m. regarding the proposed 2007 millage rate and the proposed 2007-08 fiscal year budget for the City. Mayor Swartz explained the proposed millage rate of 19.58 mills for 2007 is an increase of .07 mills from last year, due to the need to cover debt service payments for voted millage for capital improvements. The budget for the 2007-08 fiscal year is proposed at $ 3,882,000, which is $ 112,000 less than the current fiscal year budget. Mayor Swartz reviewed major projects and capital expenditures planned for the upcoming fiscal year and reminded the public that even though items have been budgeted for, City Council will need to review and approve items listed in the budget throughout the fiscal year as they come up.

Mayor Swartz asked for public comment on the budget. Bill Duerr questioned items in the Sewer Fund in regard to where revenue comes from. Youatt explained that the majority of revenue derives from sewer rates charged residential, commercial and industrial customers. Lee Elliott questioned property tax collection dates, whether all taxes will be collected in summer rather than the majority collected in winter. Youatt replied that school taxes are collected in summer and city and county taxes are collected in winter.

There being no further comments, Mayor Swartz closed the public hearing at 7:43 p.m.

OLD BUSINESS: Council reviewed bids received for purchase of fence for the Davidson Park tennis and basketball court project. Bids received were from Halfway Fence Company, Bad Axe, for $ 14,882.32 (which included 700 feet of bottom rail) and from Nationwide Construction Group, Chesterfield, Michigan for $ 14,341.56 (which did not include bottom rail). The Recreation Commission has reviewed the proposals and has recommended City Council approval of the proposal from Halfway Fence. It was moved by Kleinknecht, seconded by Goniewicha to accept the proposal from Halfway Fence for $ 14,882.32 as submitted. Motion carried. 5 yeas.

NEW BUSINESS: Resolution # 2007-16, "2007 Millage Rate," was presented to Council. The Resolution would set the 2007 millage rate for the City at a total of 19.58 mills. It was moved by Wood, seconded by Burkhard, to adopt Resolution # 2007-16 as presented. Motion carried. 5 yeas.

Resolution # 2007-17, "2007-08 Fiscal Year Budget," was presented to Council. The Resolution would adopt the 2007-08 fiscal year budget for the City, by fund and by total. It was moved by Wood, seconded by Burkhard to adopt Resolution # 2007-17 as presented. Motion carried. 5 yeas.

Resolution # 2007-18, "2007 Bond Resolution," was presented to Council. The Resolution would ratify and confirm the City of Harbor Beach General Obligation Limited Tax Bonds, series 2007. Youatt stated that Bond Counsel Paul Wyzgoski from Dickinson Wright requested adoption of this Resolution for the State Revolving Loan funding. It was moved by Kleinknecht, seconded by Wood to adopt Resolution # 2007-18 as presented. Motion carried. 5 yeas.

Resolution # 2007-19, "Easement for Gas Pipeline - Consumers Energy - Sewer Retention Basin Project," was presented to Council. Youatt explained that Consumers Energy requested this easement be granted in conjunction with the Sanitary Sewer Retention Basin project scheduled to begin this summer. It was moved by Wood, seconded by Burkhard to adopt Resolution # 2007-19 as presented. Motion carried. 5 yeas.

Engineer Report: Youatt reviewed the Engineer Report from Dave Bergdolt, dated June 4, 2007. Council will need to review and approve exterior surface options for the sanitary sewer retention basin. A pre-construction meeting will be held on Monday, June 18th at City Hall in the late afternoon. Utility coordination with Detroit Edison and Consumers Energy is on-going.

Finance Officer Report: Negotiations continue with Sensient Flavors and Dow AgroSciences on their Industrial User Permits, in particular, to their loading limitations. Work continues on the financing for the State Revolving Loan Fund. Contract negotiations continue with the AFSCME Union and Police Union. Department Heads and Non-Union employees will be receiving information this week and begin negotiations on their employment agreements. Youatt referred the Council to information regarding the annual MML Convention scheduled for September in Traverse City and requested confirmation of attendance soon in order to Finance Officer Report (Continued): submit registration information in a timely manner.

Council Reports: Mayor Swartz reminded citizens to pick up nominating forms for the Beautification Award program. The Chamber of Commerce will meet tomorrow night to discuss their level of support for the first Winter Festival in Harbor Beach. Mayor Swartz discussed problems with citizens cutting grass by sending the clippings out in the street and curb, which leads to clogged up catch basins.

There being no further business, the meeting was adjourned at 8:19 p.m.