VILLAGE OF ARMADA
REGULAR COUNCIL MEETING
MONDAY, MARCH 23, 2009
7:00PM
President Stork called the meeting to order at 7:00 p.m. All rose for Pledge of Allegiance. Present at roll call: Stork, Stirrett, Clark, Coenen, Cooper, Wolak, and Sutherland. Also present: Clerk Poulos, Treasurer Adair, Gary Timmer, Tom Arlington, Paul Verlee, Dennis LeMieux, Ben Delecke, Sandra Hoxie, Matthew Fahr, David Stork, John Paterek, Ed Serwatowski, Nancy Parmenter, and Doug Skylis (Rowe Incorporated).
AGENDA, APPROVAL OF
MOTION by Clark, seconded by Cooper, to approve agenda as amended.
All Ayes CARRIED
Added Sewer Cap Resolution as Agenda Item #15.
Moved Discussion of North Fulton Street Stimulus Project from Old Business to Agenda Item #16.
Added Small Claim Lawsuit as Old Business Item #2.
Moved Capital Charges to Agenda Item #5.
Moved Public Hearing to Adopt Budget to Agenda Item #6.
CITIZEN COMMENT
None received.
GENERAL BUSINESS
MOTION by Coenen, seconded by Cooper, to approve the consent agenda as amended.
Ayes: Ayes CARRIED
Approval of RCM Minutes of 3/9/09 approved as presented.
Payment of Bills totaling $9,550.99 approved for payment as follows:
1. General Fund $ 7,054.56
2. Water Plant Fund $ 0
3. Water System Fund $ 173.58
4. Sewer Plant Fund $ 0
5. Sewer System Fund $ 139.92
6. Major Street Fund $ 62.67
7. Local Street Fund $ 75.19
8. Municipal Street Fund $ 2,045.07
9. DDA $ 0___
Total $ 9,550.99
2009-2010 Wage Allocations pulled, added as Agenda Item #14.
List of Depositories approved to accept the 2009/10 Village of Armada List of Depositories and place on file.
Investment Policy approved to accept the submittal of the Treasurer’s annual Investment Policy.
Correspondence approved for filing:
Issue Advisory from the MML dated 3-19-09.
Action Alert from the MML dated 3-19-09.
Newsletter from Jennifer Haase, State Representative, dated 3-13-09.
Letter from Anthony Morroco’s office dated 3-6-09.
Letter from the DEQ dated 3-17-09 plus a referenced letter from the DEQ dated 1-30-07.
2. UNITED WATER REPORT
Gary Timmer of United Water gave a brief summation of his monthly operating report for the Waste Water Treatment Plant. He explained that they had pulled the lift station pumps for routine maintenance, that the mixers are scheduled in April for repair and that the west side mixers are up and running. Sewer Commissioner Michael Stirrett informed Council that Michigan State University Professor Mackenzie Davis is compiling an educational book for Engineers, as discussed at a previous Council meeting, and has interviewed the operators of our Wastewater Plant. There will be no specifics listed and a summary of the plants visited will be listed in the back of the book. All issues, with the exception of the engineering book, are included in this months report.
MOTION by Stirrett, seconded by Sutherland, to accept the United Water Report for February 2009 as presented and place on file.
All Ayes CARRIED
3. SET PROPOSED MILLAGE RATES FOR FISCAL YEAR 2009/2010
Treasurer Adair explained that the Council needs to set the proposed millage rates for fiscal year 2009/2010. The millage will not be set until we receive the Headlee Rollback amount from the County.
MOTION by Coenen, seconded by Clark, to accept the recommendation by Treasurer Adair to propose the 2009 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
Total Proposed Millage Rate 13.2192 mills
Ayes: Coenen, Clark, Stirrett, Wolak, Stork, cooper, Sutherland
Nays: None CARRIED
4. SET ADMINISTRATIVE FEES FOR VILLAGE ACCOUNTS
The Treasurer and President recommended the following Administrative Fees for Village Accounts:
MOTION by Stirrett, seconded by Cooper, 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: Stirrett, Cooper, Clark, Sutherland, Wolak, Coenen, Stork
Nays: None CARRIED
5. CAPITAL CHARGES
The Clerk presented Council with the annual proposed water and sewer rate resolutions (on file) reflecting the Detroit Area CPI increase of 2.7% on the water and sewer commodity charges and the water DWRF bond cost has been raised 3% as required by the bond. It was also explained that these percentages were determined during several meetings, and that the Council’s decision to increase by the suggested percentages was discussed heavily.
MOTION by Sutherland, seconded by Clark, to adopt the attached resolutions approving the new water and sewer rates.
Ayes: Sutherland, Clark, Stork, Cooper, Coenen
Nays: Stirrett, Wolak CARRIED
6. PUBLIC HEARING TO ADOPT THE FISCAL YEAR 2009/2010 BUDGET
MOTION by Coenen, seconded by Cooper, to enter into Public Hearing at 7:21 pm.
All Ayes CARRIED
The Village of Armada's fiscal year 2009/2010 begins April 1, 2009. 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. The Water Fund was not ready for approval at this time. No public comment was received.
MOTION by Cooper, seconded by Clark, to exit Public Hearing at 7:24 pm.
All Ayes CARRIED
MOTION by Sutherland, seconded by Coenen, to adopt the fiscal year 2009/10 budgets for the following funds as presented:
Projected surplus at budget year end
General Fund $426,892.02
Municipal Street Fund $356,744.63
Major Street Fund $ 13,760.70
Local Street Fund $ 10,494.20
Water Fund $
Sewer Fund $ 92,237.08
Ayes: Sutherland, Coenen, Stirrett, Stork, Cooper, Clark
Nays: Wolak CARRIED
7. BUDGET AMENDMENT FOR DEDICATION OF CELL TOWER LEASE REVENUE
This item was explained by Treasurer Adair. She stated that this revenue comes in yearly and it was dedicated last year for the BS&A Utility Billing Program. The program did not cost as much as anticipated so there is a balance of $5,900.00 in the water fund. During discussions in the budget workshops, it was proposed to move these funds to the sewer fund.
MOTION by Stirrett, seconded by Sutherland, to approve the budget amendment for fiscal year 2008/2009 expenditures to increase Account #999-999 transferring to other funds $5,900.00 from the water fund to the sewer fund adjusting the prior year funds to $404,140.06.
Ayes: Stirrett, Sutherland, Clark, Stork, Cooper, Coenen, Wolak
Nays: None CARRIED
8. BUDGET AMENDMENT FOR GENERAL EMPLOYEE DEFERRED COMPENSATION
Treasurer Adair explained that former employee Mary T. Nelson has requested to have her deferred compensations prorated portion paid in this fiscal year, which is allowed for in her contract. Treasurer Adair explained that the funds come from the General Fund and will need to be brought forward from the 2009 funds to the 2008 funds, since the deferred compensation is not paid until April 1.
MOTION by Coenen, seconded by Cooper, to approve the budget amendment for fiscal year 2008/2009 expenditures to increase Account #862-726 in the amount of $1,744.62 from the original budgeted amount of $2,135.91 now totaling $3,880.53 with a total expenditure fund adjustment from $401,226.17 to $399,481.55.
Ayes: Coenen, Cooper, Stirrett, Stork, Wolak, Sutherland, Clark
Nays: None CARRIED
9. PART TIME POLICE OFICERS PAY INCREASE
Police Commissioner Cooper and Chief Smith asked Council to consider wage increases for Part Time Police Officers. Cooper explained that she had contacted several other agencies and at the current rates, our officers are the lowest paid. It was also pointed out that the part time officers have not had a raise in five years.
MOTION by Cooper, seconded by Clark, to approve hourly wage rates effective April 1, 2009 for current part-time police officers as follows:
$14.00 per hour for part-time police officers having six months or less of service to the Village;
$14.50 per hour for part-time police officers having six months to one year of service to the Village;
$15.00 per hour for part-time police officers having one year or more of service to the Village.
Ayes: Cooper, Clark, Stork, Coenen, Wolak, Sutherland, Stirrett
Nays: None CARRIED
10. PART TIME DPW EMPLOYEE PAY INCREASE
DPW Supervisor Ed Serwatowski asked Council to consider raising the pay of the part time DPW employee. He stated that there has been no increase in pay for this employee in three years.
MOTION by Clark, seconded by Wolak, to approve the hourly wage rate effective April 1, 2009 for current part-time DPW employees at $13.00/hour.
Ayes: Clark, Wolak, Sutherland, Coenen, Stirrett, Stork, Cooper
Nays: None CARRIED
11. VILLAGE INSPECTOR GENERAL LIABILITY COVERAGE
It was recently discovered that the Village is not currently covering our inspectors under the General Liability Insurance. The President asked Council to consider adding the inspectors. The Clerk was quoted a price of $233.00/year for this coverage.
MOTION by Cooper, seconded by Wolak, to make a policy adjustment to the Village’s general liability insurance policy to include coverage for the Village appointed inspectors at a cost of $233.00/year.
Ayes: Cooper, Wolak, Stirrett, Sutherland, Coenen, Stork, Clark
Nays: None CARRIED
12. RESIGNATION FROM CABLE COMMISSION
President Stork informed Council that she had received a verbal resignation from Jim Kreuger from the Cable Commission as he is no longer a resident of the Village.
MOTION by Coenen, seconded by Stirrett, to accept the verbal resignation of Jim Krueger from the Cable Commission effective immediately, with regret.
All Ayes CARRIED
13. ADOPTION OF ZBA FEE SCHEDULE
ZBA Chairman Paul shoemaker presented Council with a proposed fee schedule prepared by Richard Weinand, President Stork and himself. He explained that they felt that the $600.00 currently required to go before the ZBA was too high and may have prevented residents from using this process. He stated that Treasurer Adair looked at previous ZBA meetings and found that the majority had cost around $250.00 - $300.00 per meeting. He believes that $300.00 is a more reasonable deposit and if the Attorney, Planner or Engineer is needed, the board could then request more money. Shoemaker also said that a copy of section 24.10 of the Zoning Ordinance is now included in the ZBA packet so there will be no question of what is needed to seek a variance. He also stated that the packet had been reviewed by the Attorney. Trustee Cooper and Planning Commission Chairman Ben Delecke both raised concerns over changing the $600.00 deposit stating that they feel requesting more money during the process, as opposed to up front, would create problems and extra meetings. Shoemaker stated that the Chairman would decide if the Attorney, Planner or Engineer are necessary and would request the additional funds. President Stork stated that $600.00 was too expensive for residents, $300.00 is more reasonable. Cooper raised concerns over keeping track of payment and asked if Shoemaker had set up any type of system with the office to monitor this. Treasurer Adair stated that the ZBA has a defined packet that will keep this organized. Delecke compliment the creators of this fee schedule for their thoroughness, but still finds fault with the proposed two fees. He stated that he feels they should stay with the $600.00 deposit to avoid asking for more money during the process.
MOTION by Coenen, seconded by Clark, to approve the ZBA fee schedule as amended.
Council decided this issue is not ready to be voted on. Delecke recommended the Chairman review the variance request before charging any fees and if he believes that additional fees for the Attorney, Planner or Engineer are necessary, can be charged at the time of submission. If additional fees are not required, only $300.00 is required to file a variance. The proposed fee schedule will be changed to reflect new language and will be brought back to the next regular Council meeting.
MOTION withdrawn.
MOTION by Wolak, seconded by Cooper to table until the next meeting.
All Ayes CARRIED
14. 2009-2010 WAGE ALLOCATIONS
President Stork removed this item from the Consent Agenda. She explained that this will set the Clerk and Treasurer wages for this fiscal year and reflect a 2% increase to the wages.
MOTION by Cooper, seconded by Coenen, to establish the compensation for the Clerk of the Village of Armada in the amount of $22,216.62 annually effective April 1, 2009.
Ayes: Cooper, Coenen, Sutherland, Stirrett, Wolak
Nays: Stork, Clark CARRIED
MOTION by Coenen, seconded by Wolak, to establish the compensation for the Treasurer of the Village of Armada in the amount of $31,888.26 annually effective April 1, 2009.
Ayes: Coenen, Wolak, Stirrett, Sutherland, Cooper
Nays: Stork, Clark CARRIED
15. SEWER CAP RESOLUTION
Treasurer Adair explained that this is the investment fund on the Waste Water Treatment Plant to cover the cost to replace items or equipment in the plant. The bond required a sufficient amount based upon the unpaid balance to be set aside for any necessary replacements. The bond is now paid off and Council can set this amount. It is currently set at $350,000.00 and as discussed during the previous budget workshops, a resolution has been prepared to cap this amount at $250,000.00.
MOTION by Stirrett, seconded by Wolak, that the annual investment into the Sewer Replacement Fund held by Bank of America be suspended at such time that the account reaches a balance of Two Hundred Fifty Thousand Dollars ($250,000.00). If, at any time, funds are withdrawn from the account and the balance drops below Two Hundred Fifty Thousand Dollars, the annual investment will resume at an amount determined in the budget year immediately following the withdrawal.
Ayes: Stirrett, Coenen Cooper, Clark, Wolak, Stork, Sutherland
Nays: None CARRIED
16. DISCUSSION OF NORTH FULTON STREET STIMULUS PROJECT
After several references to this project in past meetings, President Stork detailed the proposed project. She stated that the Village was awarded, through Federal Stimulus, up to $750,000.00 for the rebuild of North Fulton, starting just north of Main Street to Armada Center Road. This must be an MDOT bid project, plans must be turned in soon, the water main is 100+ years old, are 4” pipes and will need to be replaced during the project, but are not included in the $750,000.00, nor is the Engineering costs. MDOT stated to Stork that they may not approve the project if the water mains are not replaced. Trustee Stirrett asked for a copy of the request submitted to the county. He asked if the road will be turned over to the county. Stork replied no and the only change will be the widening of the road and sidewalks must be installed on one side as determined by MDOT. Stirrett asked about unforeseen problems and building in a contingency, Serwatowski stated that this is part of the bid process. Stirrett raised concerns over the water budgets money situation and whether it can sustain two projects, the well house for replacement well #4 (well #8) that the DEQ is requiring and this proposed project. He further stated the importance of the well house and getting the well running, explaining that if the other wells quit functioning, the Village could be without water until they are repaired. Serwatowski stated that the Village would need to haul in water for residents and he feels that the well house should be put in immediately. Stork stated the road project will begin in the Spring of 2010. Stork explained that the Village is responsible for the engineering costs, approximately $140,000.00 and the water main replacement cost, approximately $160,000.00, for the North Fulton Project. The budget allows for the well house to be completed this year with the water budget borrowing approximately $20,000.00 from the General Fund, leaving a dilemma of how to obtain $160,000.00 for the water main project next year, as the General fund cannot loan that amount of money. The alternative is to bond this amount, which the Treasurer is currently investigating, or to seek further stimulus money. She explained that the well house would be more eligible for stimulus money as it is engineer ready, the Village can use the last well house plans with few alterations, and the water mains are not. Proposals for any further water stimulus money must be submitted to the DEQ by May 1 and require a Public Hearing, which Stork does not believe there is enough time for. Township Supervisor John Paterek stated the importance of accepting this stimulus money, he feels it will never be offered again, and complimented President Stork for obtaining it. Village residents Sandy Hoxie and Dennis LeMieux also asked Council to accept this, as did The Village Rehabilitation Center owner Paul Verlee. Trustee Coenen stated that the Council has not decided against accepting this stimulus money, they are not even ready to vote on it, this is only discussion at this time. Wolak and Coenen stated that the Village has been seeking county assistance for years, that many past Council members and President’s have worked towards county assistance. Stork stated that MDOT will bid the whole job, including the water main portion and the Village would be required to reimburse that amount.
OLD BUSINESS
1. AWARDING OF BID FOR REMOVAL OF WASTE FROM THE WATER FILTRATION PLANT
As requested at the last Regular Council Meeting, DPW Supervisor Ed Serwatowski has reviewed the bids received during the last RCM. He contacted Metro Sewer and the Village will be required to pay more on this contract only if the arsenic is too high for dumping, possibly up to $1,000.00, but Serwatowski does not feel this will be an issue.
MOTION by Sutherland, seconded by Stirrett, to award the bid to quarterly wash, vacuum and dispose of iron/arsenic waste from a manhole sump discharge at the Armada Water Filtration Plant, for a period of one year to Metro Sewer Cleaners for a cost of $795.00.
Ayes: Sutherland, Stirrett, Cooper, Clark, Wolak, Coenen, Stork
Nays: None CARRIED
2. SMALL CLAIMS LAWSUIT
President Stork stated that the Village received an unfavorable ruling on a small claims complaint filed by a resident last week. The Village Attorney advised that the sole appeal is through the District Court Judge. Such an appeal need to be made within seven days, by March 26, 2009, and there is a $40.00 filing fee, but no Attorney cost.
MOTION by Clark, seconded by Sutherland, to authorize the filing of an appeal of the decision rendered in the small claims Case No. SC-09-0030.
All Ayes CARRIED
President Stork announced the following upcoming community events:
A bone marrow drive spaghetti dinner is being sponsored for Peter Barachkov who is six years old and has aplastic anemia and is in need of a stem cell transplant will be held on March 27, 2009 at the Creekside Center Banquet Hall. He is the grandson of the Gaier family. Other donations can be made at Capac State Bank under Rosie Gaier.
The Armada Lionesses Mom to Mom Sale is Saturday April 18, 2009 at the Creekside Center Banquet Hall. Early bird admission is $2.00 and regular admission is $1.00.
Two more weeks of Story Time at the Armada Free Public Library at 10:00 am Thursdays for ages 3 ½ - 5. Register by calling the Library at 784-5921.
The ABA is hosting the annual Easter egg hunt at the Armada Fair Grounds on April 4, 2009 at 11:00 am for ages 3 to 10.
Paul Verlee thanked the Village Council and the Planning Commission for all of their support during the Village Rehabilitation Center (Fair Acres) renovations.
No further business.
MOTION by Cooper, seconded by Sutherland, to adjourn the meeting at 9:10 pm.
All Ayes CARRIED
Minutes submitted by:
Michelle Poulos, Armada Village Clerk