Council Proceedings of July 11, 2012 Page 1 Ishpeming, Michigan

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1 Council Proceedings of July 11, 2012 Page 1 Ishpeming, Michigan A regular meeting of the Ishpeming City Council was held on Wednesday, July 11, 2012 at the Ishpeming Senior Citizens Center. Mayor Pat Scanlon called the meeting to order at 7:00 p.m. Present: Mayor Pat Scanlon, Council Members Claudia Demarest, Elaine Racine, John Stone and Mike Tall. Present: Five (5). Absent: None (0). Also present were City Manager Jered Ottenwess and City Attorney David Savu. PUBLIC COMMENT Mr. John McNaughton, Library Director, introduced himself to the City Council. Mr. Stuart Skauge, 458 Oak Street, offered his opinion regarding the use of the former JCPenny lot. The Downtown Development Authority has proposed a park and a band shell for the vacant property. The owners of the Congress have expressed an interest in purchasing the property and would like to expand their business. The DDA was created to help expand and promote downtown businesses. The Congress is one of the few remaining businesses in our downtown and draws in a large number of people throughout the year. Mr. Skauge encouraged the City Council to do what they can to help the Congress expand their business. Mr. George Hyde, 855 Foxtail Court, Marquette, introduced himself to the City Council and announced he is a candidate for Marquette County Probate Judge. He has been practicing law in the Upper Peninsula for 18 years. For the last 11 years he has served as the Marquette County Juvenile Court Referee, and he is the only candidate with judicial experience. Mr. Richard Laksonen, 1160 S. Pine Street and Volunteer Fireman, addressed the City Council on behalf of the Ishpeming Volunteer Firemen regarding their concerns about the condition of the Fire Hall. The Fire Hall is 100 years old and was built for horses and wagons. The current condition of the Fire Hall is not adequate to support the weight of the modern, heavy trucks we have today. The soil below the Fire Hall is not stable and the building continues to shift. They understand the historical significance of the building, but the structure no longer meets the needs of the Fire Department. It is the recommendation of the Volunteer Fire Department to construct a new facility on a new site. Ms. Cathy Church, 630 Forest Park Drive, Marquette, introduced herself to the City Council and announced she is a candidate for Marquette County Probate Judge. Ms. Church explained the duties of the Probate Court Judge and the types of cases that come before a Probate Court Judge. Ms. Church stated she has practiced law for 25 years. She has worked in criminal defense, was an assistant prosecutor, and now has a private practice. AGENDA COMMENT Mr. Mike Tonkin, 612 N. Third Street, reserved time for comment on Agenda Item No. 12, Phelps PILOT Ordinance. Mr. Larry Kiviniemi, 330 South Pine Street, reserved time for comment on Agenda Item No. 8, Public Hearing on the disposal of City-owned property north of 330 South Pine Street.

2 Council Proceedings of July 11, 2012 Page 2 CONSENT AGENDA A motion was made by Councilwoman Racine and seconded by Councilman Tall to approve the Consent Agenda as presented: a. Minutes of Previous Meetings (June 6 and 20, 2012) b. Approval of Disbursements c. Declare 850 Library books as surplus property to the City and to offer the items for sale to the highest bidder. PUBLIC HEARING REGARDING THE PROPOSED TRANSFER OF A PARCEL OF REAL PROPERTY TO MALTON INDUSTRIAL SERVICES COMPANY Mayor Scanlon opened the public hearing at 7:18 p.m. to hear and receive comments regarding the proposed transfer of a parcel of real property to Malton Industrial Services Company. Hearing no comments, Mayor Scanlon closed the public hearing at 7:19 p.m. PUBLIC HEARING ON THE DISPOSAL OF CITY-OWNED PROPERTY NORTH OF 330 SOUTH PINE STREET Mayor Scanlon opened the public hearing at 7:20 p.m. to hear and receive comments regarding the disposal of City-owned property north of 330 S. Pine Street. Hearing no comments, Mayor Scanlon closed the public hearing at 7:21 p.m. MEMORANDUM OF UNDERSTANDING WITH MALTON ELECTRIC At the recommendation of the City Manager, a motion was made by Councilwoman Demarest and seconded by Councilman Tall to authorize Mayor Scanlon and the City Clerk to execute the Memorandum of Understanding between the City of Ishpeming and Malton Electric Company, as presented, and to execute all instruments of transfer associated with the property transaction. LAKE BANCROFT PRESENTATION Mr. Carr Baldwin, Representative of the Lake Bancroft Committee, reported the committee has raised $4,865 to date. Forty-three different entities have made donations, and these donations have come from individuals, businesses, and alumni groups. Mr. Baldwin introduced Mr. Dennis Gebben of Interface H20. Mr. Gebben is here to demonstrate the mechanical unit that will be used to apply the polymer to the water in Lake Bancroft. Mr. Gebben, Interface H20, explained that the polymer is the chemical that will be used to remove the organic suspended solids and clarify the water in Lake Bancroft. Mr. Gebben made an interesting and informative presentation. He explained how the device will be used to house the polymer and how the polymer will be injected into the lake.

3 Council Proceedings of July 11, 2012 Page 3 FIRE HALL City Manager Ottenwess explained the City Council had adjourned this item from the June 20 th Special Council Meeting to allow time to review and consider all of the information and comments that had been presented. It is important for the City Council to make a decision on the next steps to take and set a direction for the future of the Fire Hall. The City Manager outlined two major paths for the City Council to consider. He recommended the City Council either pursue working with the City of Negaunee for consolidation of public safety services or pursue a voted millage for the construction of a new Fire Hall. The City Manager presented information about the State of Michigan s Economic Vitality Incentive Program grant opportunity. A significant amount of grant funding is available for the consolidation of services. The grants would cover up to 25% of a shared service analysis and up to 100% for an infrastructure project. Should the City Council choose not to pursue consolidation, the City Manager strongly recommended that the City Council move forward with a voted millage to address new construction of the Fire Hall. Mayor Scanlon stated the subject of moving the Fire Hall to a new location has come up on several occasions. He is concerned that the City has not yet finished paying for the Fire Hall tower and it could jeopardize our request for grant funding. Councilwoman Demarest stated she does feel that a new Fire Hall building is needed, and the facility should be constructed on a new site. She supports the suggestion that we also contact the City of Negaunee to explore the idea of consolidating services. The existing Fire Hall could be renovated to serve the needs of the Police Department. Councilman Stone commented on the City Manager s two suggestions for the future of the Fire Hall and believes we need to explore both ideas. It is important for the City to continue to gather comments from the public. Councilman Stone strongly recommended that the City pursue the availability of EVIP grant money. Councilman Stone stated he is not in favor of increasing millage to pay for the project and has concerns that the public would not support a millage increase. Councilman Tall stated that the Council is here to serve at the pleasure of the people. It is important to find out from the people how they would feel about a millage. Councilman Tall stated he is aware of other communities that have been able to fund their public safety buildings with grant money. It may not be easy to do, but he feels it could be done. Councilwoman Racine feels it is important that we take the time necessary to find out what is best for our City. Consolidation is an option, but she does not know how the Fire Department members feel about that idea. There has been some talk from the County of Marquette to remove their County service office out of Ishpeming. Their building is located directly across from our Fire and Police Departments. Should it become vacant, it would be a good location for our Police Department.

4 Council Proceedings of July 11, 2012 Page 4 Councilwoman Demarest stated the DPW building is also in poor condition and in need of many repairs. She suggested that the City may want to consider the feasibility of constructing one large facility to house all of the departments. A motion was made by Mayor Scanlon and seconded by Councilwoman Racine to direct the City Manager to prepare and conduct a survey to gage public support of a millage question, to pursue grant funding, and to study potential consolidation of public safety services with the City of Negaunee. PHELPS PILOT ORDINANCE City Manager Ottenwess explained that the developer of the Phelps property, G.A. Haan Development, is pursuing funding from the Michigan State Housing Authority (MSHDA) through low income tax credits. In order to qualify for the low income tax credits, G.A. Haan must show whether or not the project has received tax abatement from the City of Ishpeming. The most common means of providing tax abatement for this type of project is through the PILOT Ordinance (Payment in Lieu of Tax). Mr. Mike Tonkin, 612 N. 3 rd Street, commented on the proposed PILOT for the Phelps project. It was his understanding from previous discussions about this property that the City would raise a significant amount of tax revenue if we allowed the Phelps property to be a multi-family residential project. Mr. Tonkin stated he pays over $2,000 a year for taxes on his single dwelling just two doors down from Phelps. Under this proposal, the developers would create 24 living units and only pay a few thousand dollars a year in taxes. Mr. Tonkin is not in favor of the Phelps renovation project if it will not make any money for the City. At the recommendation of the City Manager, a motion was made by Councilwoman Racine and seconded by Councilman Tall to adopt Ordinance No , An Ordinance to Provide for a Service Charge in Lieu of Taxes for a Proposed Multiple Family Dwelling Project for Persons of Low Income to be Financed or Assisted Pursuant to the Provisions of the State Housing Development Authority Act of 1966, as Amended. Ayes: Five (5). Nays: None (0). Motion carried. PARTRIDGE CREEK PHASE 2 SERVICE AGREEMENTS GEI CONSULTANTS AND AECOM seconded by Councilwoman Racine to approve the Professional Services Agreement between the City of Ishpeming and AECOM for Partridge Creek Phase 2, and to approve the Professional Services Agreement between the City of Ishpeming and GEI Consultants for Partridge Creek Phase 2, as presented. The City Manager shall be authorized to execute the documents on behalf of the City of Ishpeming. PURCHASE OF 300 WEST DIVISION STREET seconded by Councilwoman Racine to authorize the City Manager to write a letter to the Marquette County Treasurer expressing the City s interest in purchasing the property at 300 W. Division for the minimum bid of $1,672 and execute all necessary documents to complete the

5 Council Proceedings of July 11, 2012 Page 5 purchase. The purchase is to be paid from the Public Improvement Fund. Ayes: Five (5). Nays: None (0). Motion carried. ENGINEERING STANDARDS FOR ROADS AND STREETS seconded by Councilman Tall to approve the Engineering Standards for Design and Construction of Streets, Storm Drainage Systems, and Road-side Appurtenances, as presented. AMENDMENT TO RESOLUTION NO , UNIFORM CITY POLICY REGARDING EXPENSES FOR TRAVEL seconded by Councilwoman Demarest to amend Resolution No , Uniform City Policy Regarding Expenses for Travel, to allow a $10 reimbursement for both breakfast and lunch. OLD BUSINESS Councilwoman Racine stated she continues to receive comments from people who are very disgusted with the windmill at the Bluff Street Apartments. Councilwoman Racine suggested that the City Manager attend a meeting of the Ishpeming Housing Authority to find out what they intend to do with the windmill. Councilman Stone stated the Ishpeming Housing Authority has a meeting tomorrow. He is the City s representative for the Housing Authority and will ask about the status of the windmill at the meeting. Councilwoman Demarest announced that the Mather book collection was sold by auction at Sotheby s. She requested clarification of the actual amount the City received for the sale of the book collection. Councilman Stone commented on the water issues at the Police Department. He suggested that the City bring in an engineering firm to look at the problem and to get the pipes fixed permanently. NEW BUSINESS Councilman Tall stated he did some research on ladder trucks for the Fire Department. Based on the specifications, our City water lines cannot support a ladder truck. Councilman Tall reported he has gathered some plans of other fire halls and will show them at a later time. seconded by Councilwoman Demarest to authorize the City Manager to execute the Michigan Community Development Block Grant (CDBG) in the amount of $399,043 for the Gateway Enhancement and Streetscape Improvements Project; Grant #MSC DIG. All matching funds required by the grant shall be paid by the Downtown Development Authority. Ayes: Five (5). Nays: None (0). Motion carried.

6 Council Proceedings of July 11, 2012 Page 6 MAYOR SCANLON The City of Ishpeming had a great 4 th of July celebration and all of the events were very wellattended. Mayor Scanlon spoke to the Police Chief about the holiday and very few complaints were issued over that time period. Mayor Scanlon thanked the Superior Model A Ford Club for bringing the 2012 International Convention to Ishpeming. Mayor Scanlon said he had the pleasure and the honor to present a commemorative license plate to the 20 Millionth Model A Ford. Several of the visitors he spoke to commented about all the friendly people they met during their visit and about how much they enjoyed their stay. COUNCILMAN STONE Councilman Stone stated he had attended all of his committee meetings. Councilman Stone thanked the members of the 4 th of July Committee and all of the volunteers who donated their time for all of the festivities. He also thanked Mr. Paul Sandstrom for donating the use of his vehicles so the City officials could ride in the parade. COUNCILMAN TALL Councilman Tall thanked Steve Pellinen, the members of the Superior Model A Ford Club, and all of the other volunteers for organizing the 2012 Model A International Convention. Councilman Tall expressed his appreciation to all of volunteers who helped with the 4 th of July events. COUNCILWOMAN DEMAREST Councilwoman Demarest thanked the Superior Model A Ford Club for all of their efforts in bringing the 2012 International Convention to Marquette County. Councilwoman Demarest thanked the 4 th of July Committee for organizing all of the events. There was a very large crowd in attendance for the fireworks, and the fireworks were terrific. COUNCILWOMAN RACINE Councilwoman Racine thanked the members of the Downtown Development Authority for their help in making the City of Ishpeming look so welcoming for the Model A Ford International Convention. The members painted Model A replicas, and the replicas were displayed throughout our downtown. Councilwoman Racine announced that the Cruisin Car Show has been cancelled this year due to the Partridge Creek project and the road construction. The Cruisin Car Show will be back next year. Councilwoman Racine thanked everyone for the enthusiastic support she and the other Council Members received on the parade route. She attended the fireworks and said the fireworks were awesome.

7 Council Proceedings of July 11, 2012 Page 7 MANAGER S REPORT City Manager Ottenwess responded to the comments made earlier this evening during Public Comment. The Downtown Development Authority has been working with Mr. Koski, owner of the Congress, on designing the improvements for the former JCPenny lot. The DDA has a service agreement with UPEA to do the planning and design for that site. The design will incorporate a concept to include the interests of the Congress, including outdoor seating and an expanded kitchen. PUBLIC WORKS DIRECTOR/CITY ENGINEER REPORT The Public Works Director s written report was distributed to the Council Members in the meeting packet. POLICE CHIEF REPORT Police Chief Dan Willey reported that the unclaimed, surplus bicycles were auctioned during the Festival of Treasures. The City collected a total of $1010. Butch Patient volunteered his services and conducted the auction at no cost to the City. ATTORNEY S REPORT No report. ADJOURNMENT A motion was made by Councilwoman Demarest and seconded by Councilman Tall to adjourn the meeting at 8:50 p.m. Jenifer M. Rajala City Clerk

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