VILLAGE OF ARMADA
REGULAR COUNCIL MEETING
MONDAY, MARCH 24, 2008
7:30PM
President Ballard called the meeting to order at 7:30 p.m. All rose for Pledge of Allegiance. Present at roll call: Ballard, Boelke, Wolak, Clark, Coenen, Stork, and Guse. Also present: Clerk Poulos, Treasurer Adair, Karl Krueger, David Stork, Matt Fahr, Michael Stirrett, Sue and Jim Cuneo and Daniel Sutherland.
AGENDA, APPROVAL OF
MOTION by Clark, seconded by Wolak, to approve the Agenda as presented.
All Ayes CARRIED
CITIZEN COMMENT
Sue Cuneo of 23810 East Main Street complained to Council on the condition of the road in front of her house. She supplied a sample of the shoulder of the road and showed pictures of the road after a rain. She explained that she has spoken to both President Ballard and Street Administrator Stork about the puddling in front of the house and how this propels gravel into her yard. She also stated that the shoulder was in good shape until water and sewer lines were replaced and since then she has had problems and that the DPW took out good gravel and left sharp sand which ends up on her driveway and in her lawn. She is requesting that the DPW remove 6” deep of the shoulder and allow her to put in a green belt, which she has discussed with the Street Administrator who agreed that this would help the problem. Jim Cuneo told Council that the potholes in the road are so bad that a bicyclist hit one, fell and nearly bit his tongue off. He feels that the Village has ignored these potholes for years and that this is damaging home values.
GENERAL BUSINESS
MOTION by Stork, seconded by Guse, resolved to approve the Consent Agenda, as presented.
All Ayes CARRIED
Approval of RCM Minutes of 3/10/08 approved as presented.
Correspondence received for filing:
Budget Workshop Summary Sheets for 2-18-08, 2-25-08, 3-3-08, 3-17-08, and 3-20-08.
Letter from Richmond Lenox EMS.
Letter from A.Z. Shmina, Inc.
Letter from the DEQ.
2008-2009 Wage Allocations approved to establish the compensation for the Clerk at $21,781.00/yr. and the Treasurer at $31,263.00/yr effective
April 1, 2008.
List of Depositories approved to accept the 2008/09 Village of Armada List of Depositories and place on file.
Investment Policy approved to accept the Village President’s submittal of the Treasurer’s annual Investment Policy.
Set Meeting Dates for F/Y 2008/09 approved to establish the following dates, times and places of the regular Village council meetings for fiscal year 2008/09:
Monday, April 14, 2008 Monday, October 13, 2008 Monday, April 28, 2008 Monday, October 27, 2008
Monday, May 12, 2008 Monday, November 10, 2008
Monday, May 26, 2008 Monday, November 24, 2008 Monday, June 9, 2008 Monday, December 8, 2008
Monday, June 23, 2008 Monday, December 22, 2008
Monday, July 14, 2008 Monday, January 12, 2009
Monday, July 28, 2008 Monday, January 26, 2009
Monday, August 11, 2008 Monday, February 9, 2009
Monday, August 25, 2008 Monday, February 23, 2009
Monday, September 8, 2008 Monday, March 9, 2009
Monday, September 22, 2008 Monday, March 23, 2009
Unless changed by the Village Council by duly posted notice, all of the foregoing regular meetings will take place at the Village of Armada municipal offices located at 74274 Burk Street, Armada, Michigan 48005 commencing at 7:30 p.m.
2. SET PROPOSED MILLAGE RATES
Treasurer Adair explained that the Council needs to set the proposed millage rates for fiscal year 2008/2009. The millage will not be set until we receive the Headlee Rollback amount from the County.
MOTION by Guse, seconded by Wolak, to accept the recommendation by Treasurer Adair to propose the 2008 Tax Millage rate at the maximum allowable levy as permanently reduced by MCL 211.34d and authorized under Truth in Taxation, MCL.21124e, with full understanding that these requested tax levy rates will by reduced, if necessary, to comply with the state constitutional (Article 9 Section 31) MXL Sections 211.24e and 211.34. The following rates shall be proposed:
General Fund 9.4424 mills
Municipal Streets Fund 3.7768 mills
Wastewater Disposal Facility 0.0000 mills
Total Proposed Millage Rate 13.2192 mills
Ayes: Guse, Wolak, Boelke, Clark, Stork, Coenen, Ballard
Nays: None CARRIED
3. SET PROPOSED ADMINISTRATION FEES FOR VILLAGE ACCOUNTS
The Treasurer and President recommended the following increases to the Administrative Fees for Village Accounts:
MOTION by Clark, seconded by Guse, to set the Administration Fees for the Village accounts as follows:
Local Street Fund $1,808.10
Major Street Fund $1,205.40
Water Fund $8,968.75
Sewer System Fund $1,164.61
Ayes: Ballard, Stork, Wolak, Clark, Guse, Boelke, Coenen
Nays: None CARRIED
4. RESOLUTION TO CAP SEWER REPLACEMENT FUND
President Ballard explained that Treasurer Adair submitted a resolution (on file) to cap the sewer replacement fund at $350,000.00.
MOTION by Coenen, seconded by Clark, that at a regular meeting of the village Council consisting of a quorum or more of the Municipal body duly called and held March 24, 2008 the following resolution was adopted: Resolved, that by motion from council member Coenen and supported by Clark that the annual investment into the Sewer Replacement Fund held by LaSalle Bank be suspended at such time that the account reaches a balance of Three Hundred Fifty Thousand Dollars ($350,000.00). If, at any time funds are withdrawn from the account and the balance drops below Three Hundred Fifty Thousand Dollars, the annual investment will resume at an amount determined in the budget year immediately following the withdrawal.
Ayes: Coenen, Clark, Ballard, Boelke, Stork, Guse, Wolak
Nays: None CARRIED
5. PUBLIC HEARING TO ADOPT FISCAL YEAR 2008-09 BUDGET
MOTION by Guse, seconded by Boelke, to enter into Public Hearing at 7:48 pm.
All Ayes CARRIED
The Village of Armada's fiscal year 2008/2009 begins April 1, 2008. The Village is required to adopt budgets for its various funds prior to this date. After several workshops conducted by the Village Council, a budget was prepared and submitted for this public hearing and Council vote. No public comment was received.
MOTION by Stork, seconded by Boelke, to exit Public Hearing at 7:51 pm.
All Ayes CARRIED
MOTION by Guse, seconded by Boelke, to adopt the fiscal year 2008/09 budgets for the following funds as presented:
Projected surplus at budget year end
General Fund $419,440.17
Municipal Street Fund $457,213.90
Major Street Fund $ 10,375.79
Local Street Fund $ 16,332.63
Water Fund $410,040.06
Sewer Fund $118,387.09
6. CAPITAL CHARGES
The Clerk presented Council with the annual proposed water and sewer rate resolutions (on file) reflecting the CPI increase of 1.01795% on the sewer and a 3.74% (3% as supported by the bond per Treasurer Adair and .74% for a partial CPI) increase on the water rates and fees. Other increases were presented by President Ballard and include a 2.5% increase in connection fees, capital improvement fees, surcharge fees, a $5.00 increase to permit and inspection fees and meter testing and a correction to the dishonored/returned check fees. These increases must be done annually to keep up with the annual CPI increase, as suggested by the Village Auditor. President Ballard explained that connection fees are designed to cover new services to the system. It was explained that increasing by the CPI saves the Village from imposing a large increase at one time by increasing yearly by smaller amounts. Trustee Wolak commented that he is reluctant to increase rates due to the economy but understands the need due to the requirements of the DWRF Bond, but he is very concerned for our citizens. It was also explained that these percentages were determined during several budget workshops, and that the Council’s decision to increase by the suggested percentages were discussed heavily.
MOTION by Clark, seconded by Coenen, to adopt the attached resolutions approving the new water and sewer rates.
Ayes: Clark, Coenen, Stork, Ballard, Boelke, Guse, Wolak
Nays: None CARRIED
7. DEDICATION OF CELL TOWER LEASE REVENUE
Treasurer Adair explained that the lease tower proceeds are the money the Village receives from the rental of the property that the cell tower is located on. Originally, the lease proceeds were $3,888.88 and were transferred to the water department, due to short funds in the department. The proceeds are now $8,000.00 and, as discussed in the budget workshops, Council discussed how to pay for the upgrading of the water and sewer billing program which could cost approximately $10,000.00 and since the water department is no longer short in funds, this money could be reallocated for the upgrade.
She has prepared several motions for Councils consideration to allow for this.
MOTION by Clark, seconded by Stork, to withdraw the $3,888.88 transfer from the General Fund to the Water Fund from the cell tower lease proceeds.
Ayes: Clark, Stork, Wolak, Boelke, Guse, Ballard, Coenen
Nays: None CARRIED
MOTION by Clark, seconded by Guse, that the cell tower lease proceeds is now $8,000.00, it shall remain in the General Fund to be dedicated towards the payment of the water and sewer billing program.
Ayes: Guse, Clark, Coenen, Boelke, Wolak, Ballard, Stork
Nays: None CARRIED
MOTION by Clark, seconded by Guse, that an additional $1,000.00 each will be reserved in the water and sewer capital improvement funds and, if needed, will be used towards the water and sewer program.
Ayes: Wolak, Stork, Coenen, Boelke, Ballard, Clark, Guse
Nays: None CARRIED
No further business.
Meeting adjourned at 8:19 p.m.
Minutes submitted by:
Michelle Poulos, Armada Village Clerk