August 10, 2009 Council Minutes

VILLAGE OF MATTAWAN
REGULAR COUNCIL MEETING
AUGUST 10, 2009

MINUTES
                                                                                                                                                                                                                       

1.    CALL TO ORDER     @7:00 PM

2.    PLEDGE OF ALLEGIANCE

3.    ATTENDANCE

Present:  Kucinich, Kirklin, Bemer, McLean, Markle, Spulick, Ashbaugh

Others present:  Attorney Graham, Superintendent Anthony, Tim Woodhams & Craig Schumaker of Fleis and Vandenbrink, Rebecca Burkert of the Kiwanis Club, Cindy LaGrow of La Grow Consulting, Ruth Goheen and others.

4.    WELCOME TO PUBLIC

5.    ANNOUNCEMENT OF MEETING BEING RECORDED

Rebecca Burkert will give a short presentation on starting a Kiwanis Club in Mattawan.  They are looking for member to form a club.

Ms. Burkert reviewed the projects Kiwanis Clubs participate in.  They work closely with all the schools and currently supply Mattawan Middle School with dictionaries.  They are involved with seniors in supplying meals on wheels and many other services.  They are a community club and anyone wishing to join may either call Ms. Burkert or Terry Kubiasiak @ 269-760-9082 or contact the Village office.

6.    ADDITIONS TO THE AGENDA

Old business C – change order for Glidden was added, and new business D. Brace was added.

7.    APPROVAL OF THE AGENDA

Motion by Kucinich, support by Spulick, to approve the agenda with the additions.  All members voted in favor.  Motion carried.

8.    APPROVAL OF THE MINUTES OF JULY 27, 2009

Motion by Bemer, support by Kucinich, to approve the minutes of July 27, 2009 as printed.  Roll call vote.  All members voted in favor.  Motion carried.

9.    BILLS TO BE APPROVED IN THE AMOUNT OF $53,295.12

Motion by Markle, support by Spulick, to approve the bills in the amount of $53,295.12.  Roll call vote.  All members voted in favor.  Motion carried.

10.    LIMITED PUBLIC COMMENT ON ANY AGENDA ITEM

There was no public comment.

11.    BOARD AND COMMITTEE REPORTS.

    A.  FINANCE COMMITTEE AUGUST 10, 2009   

Chair Kirklin reported on the Finance meeting held earlier in the evening.  The bank statements for April and May 2009 were reviewed and signed.  The Committee also recommends to Council 3-0 to make the budget adjustment in the amount of $4,000 to accommodate the water reliability study.

12.    STAFF REPORTS     

    A.  DPW SUPERINTENDENTS REPORT – SUPERINTENDENT ANTHONY

Superintendent Anthony stated the department has installed a hydrant by the road side park and painted the lines on the major streets.  Anthony reported the annual water sampling is almost complete, he is just waiting for the residential samples to be picked up.  They have been waxing the floors at the DPW building, trading and graveling the sides of the roads.  The curb, gutter and sidewalks are close to being completed at St. John Bosco.

Bemer asked about moving the ditch mower and other equipment down to the old salt barn in back of Village Hall to clean up the DPW building grounds and keep the equipment out of the weather.  It was agreed to move the equipment.   

13.    OLD BUSINESS

A.    WATER RELIABILITY STUDY

Finance Committee will have a recommendation.

Motion by Markle, support by Spulick, to take the Finance Committee recommendation and make the budget adjustment in the amount of $4,000 to accommodate the water reliability study being done by Fleis and Vandenbrink.  Roll call vote.  All members voted in favor.

    B.   SAFE ROUTES TO SCHOOL

Please see enclosed draft, safe routes to school plan, make and cost estimates provided by Ms. LaGrow.   
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Cindy LaGrow of LaGrow Consulting presented the draft of the safe routes to school stating they have had several meetings with the old and new Superintendent’s of the school, as well as working with parents and students.  There is great need for sidewalks in the Village for children to walk to school, this promotes healthy activities and safe ways for children to walk and ride their bicycles to school.  As of now there are 15 bus stops within the village limits.  There are some sidewalks but many more are needed and safe routes to school is one way to get the sidewalks funded.  New Superintendent Bird is very enthused about working with the Village to get more sidewalks and has been very helpful.

The program has funds available as only 37 schools have registered, not many schools have applied due to the fact they can’t get the support from the communities, so many have dropped out therefore making more funds available.

The draft total for the project is estimated to cost $1,007,000.  Ms. LaGrow states this is just a draft and could be done in stages.  She did ask for all comments and possible changes be back to her by August 18th so she could get a final draft ready for the next meeting.

The State has requested all records be compiled by Michigan State University as they will use the same formula for all participants.   La Grow has her engineers do all the estimates as she did not want the Village to incur any costs in the draft process.

Bemer asked what the next step was in the process.  Ms. LaGrow stated the Village has to be registered with MDOT and she will check to see if we are registered, if not that will be the first step.  McLean asked what the process was to get registered with MDOT.  La Grow was not sure but would find out what if anything we needed to do at this time.

This project is 100% funded, other than the engineering costs which will be incurred by the Village at an estimate of $100,000 and the Village could possibly use Act 51 money to help with the cost of engineering.

    C.  CHANGE ORDER FOR GLIDDEN PROJECT

Tim Woodhams of Fleis reviewed the change order for the Glidden project.  There is an electric fence that needs to be moved in order to protect the fire hydrants and sewer clean out equipment.  AT the time this was done the fact that the neighboring cattle are in that pasture with the hydrants, and being city folk no one had any idea the cattle rub against everything and could potentially destroy or damage the hydrants and sewer clean out equipment.

Bemer asked if this was a village mistake or Fleis’s mistake.  Superintendent Anthony stated it wasn’t anyone’s oversight actually because no one had any idea about the cattle situation.  Anthony stated he felt in the long run it was better to move the electric fence for a cost of $814, than it was to damage thousands of dollars worth of equipment that potentially may have to be replaced.

Motion by Kirklin, support by Spulick, to approve change order #2 for the Glidden project at a cost of $814 to move the electric fence.  Roll call vote.  Six members voted in favor.  Markle abstained.  Motion carried.

14.    NEW BUSINESS

    A.  MICHIGAN RENAISSANCE ZONE PROGRAM FOR MOL-SON.

Public Act # 376 of 1996 was act to create and expand certain renaissance zones in Michigan for tool and die facilities, to foster economic opportunities in this state; to facilitate economic development; to stimulate industrial, commercial and residential improvements; to prevent physical and infrastructure deterioration of geographic areas in this state; to provide exemptions and credits from certain taxes, and local income tax up to 15 years.  A Recovery Zone shall have a duration of a renaissance zone status for a period of not less than five years as determined by the board of Michigan Strategic Fund.

Mol-Son will be joining the Untied Tooling Coalition (UTC) that has a maximum of 15 year duration to 2019.  This means if the Village grants a resolution the maximum allowed would be limited 10 years and then there is a three year phase out period.  So, in 2017 Mol-Son would pay 25% of the taxes, 2018 they would pay 50% of the taxes, and in 2019 they would be paying 75% of the taxes and in 2020 they would be obligated to pay full taxes.  Or you may choose a lesser number of years, with a minimum of 5 years tax benefits and would still be phased out as listed above.  This would be on real and personal property taxes for the Village.  I talked to Bonnie at the Township Office and the Village portion we would lose in a year is $5,960.87 and $2,401.22 for the police portion.  This will start in 2010, and Mol-Son is obligated to pay all 2009 taxes.  

Therefore, Mol-Son is asking the Village for the required resolution of support.  The Village must include in the resolution the number of years they are willing to forego taxes, and then the final decision is made by the board of the Michigan Strategic Fund.

Bill Carbury will pass out folders at the Council meeting and explain their position and answer any further questions you may have.  Please see enclosed information as well.

State Representative Tonya Schuitmaker has also sent a letter of support (enclosed) for this Renaissance Tool and Die Program for Mol-Son.

Bill Carbury of Mol-Son have a brief history of the company stating Ron Molitor bought the current building there are in and in 1984 he and Max Sonnevil started Mol-Son.  Fifteen employees were hired on the first day.  In 1986 EPC formed a joint venture between Alcoa, Ron and Max.   Between 1986-2002 Mol-Son grew to 120 employees, and EPC employed 1,200.  EPC/Mol-Son played in integral part in sewer financing and EPC/Mol-Son donated a Jaws of Life to the community.  In 2002 Alcoa takes full ownership of EPC and has donated numerous grants to the Village Park fund and police department.  In 2004 the Renaissance Tool and Die Recovery Zone Law passes allowing tool and die companies to pool their resources in order to help the industry survive the economic times.  In 2005 Max Sonnevil dies and Ron Molitor become full owner and Mol-Son Inc, is changed to Mol-Son LLC.  In 2006 Mol-Son experiences their worst year in Mol-Son history and has to lay of people for the first time.  In 2007 Mol-Son attempts to diversify their customer base and no longer solely relies on EPC.  In 2009 the Renaissance Tool and Die Recovery Zone Law is amended and now Mol-Son is qualified to participate in this recovery zone.  They have belonged to the UTC but now are eligible to participate in the Renaissance program.  The UTC has a 15 year duration, however, Mol-Son is only eligible for the last 10 years of the program which exempts them from property taxes and business taxes for whatever amount of time the Village will grant.  There is a three year phase out process at the end of what ever time is allowed.  Mol-Son is asking for 10 years which would put them in the phase out process starting in 2017.

Mr. Carbury felt this Renaissance Tool & Die Recovery program is vital for the survival of Mol-Son and the money saved through taxes would be used to diversify in order to compete with the global market. We need to save jobs in our country and keep the work in this community.

State Representative Tonya Schuitmaker was instrumental in getting this amendment to the Renaissance Tool and Die Zone in order to allow Mol-Son to qualify for the program.  Mol-Son is very appreciative of the efforts of Representative Schuitmaker.

Mr. Carbury is asking on behalf of Mol-Son for the 10 year duration.  If Council permits the Village will be required to pass a resolution and sign a memorandum of understanding.  Attorney Graham asked if the Township or any other entity needed to do a resolution also.  Carbury stated no, only the entity where the property resides.  Attorney Graham also asked if it was correct that what they needed was the resolution from the Village and the Village would sign the memorandum of understanding that would be prepared by the State.  Mr. Carbury stated all they needed at this time was the resolution and then he goes to the state and then the Village would have to sign the memorandum of understanding when it was prepared.

Bemer asked how many local people were employed by Mol-Son.  Carbury stated there were 14 with Mattawan mailing addresses, however, many of the employees have children in the Mattawan Schools.

Markle stated she was impressed with the Council visited Mol-Son during Mayor Exchange Day with how they kept their employees working even when the work was slow.  That day they were painting and cleaning and she felt it was excellent the company kept their employees working in the challenging times we are facing.

Carbury stated they try very hard not to lay off employees, they do everything they can to keep the people working as they have families and the employees are willing to do whatever necessary to keep working.  He stated they had a busy July but June was terrible.  Right now many are on vacation and they have cut back to a 32 hour work week.  It has been very challenging but their goal is to keep all working.

Motion by Markle, support by Kucinich, to adopt the resolution allowing Mol-Son up to 10 years for the Renaissance Tool & Die Recovery Program, with authority to the Village staff to work with Mol-Son and the State to prepare information required and authorize the Council President to sign the memorandum of understanding.  Roll call vote.  All members voted in favor.  Motion carried.

    B.     APPORVAL FOR FLEIS AND VANDENBRINK TO ADMINISTER CDBG GRANT

We have been approved by the Michigan  Strategic Board for the CDBG to apply for the grant for the water system improvements.  We have to submit an application for review and evaluation before we are further approved.  Please see both letters enclosed.

Schumaker stated he needs to turn in the application and needs approval for the $1500.  The rest of the proposal can be approved at a later date.  He needs to get the environmental studies under way to speed up the application process.  Attorney Graham asked what would happen if the star the environmental reviews and then we don’t get the grant.  Schumaker stated the company would be responsible for the cost not the Village. 

Motion by Kucinich, support by Kirklin, to approve the grant application fees in the amount of $1500.  Roll call vote.  All members voted in favor.  Motion carried.

C.     BRACE-BUSINESS SUPPORT

In view of the fact they only received the information at the Council meeting they would like more time to review before agreeing to meet.

Motion by Bemer, support by Spulick, to see if they could come in September for their presentation. 
Roll call vote.  All members voted in favor.  Motion carried.

15.    COMMUNICATIONS

a.    MML Legislative Link for July 21, and August 4, 2009
b.    Thank you letter to Chief VerHage from Mattawan Schools
c.    Thank you letter to Council from Mattawan School Board Treasurer

Motion by Spulick, support by Bemer, to have a copy of the letter placed in Chief’s file.  Roll call vote.  All members voted in favor.  Motion carried.

Motion by Bemer, support by Spulick,  to have a copy of the letter placed in Officer Hutchins file.  Roll call vote.  All members voted in favor.  Motion carried.

16.    COMMENTS FROM VISITORS

Chris Ballingall of 52879 25th Street stated she has been in the Village since 1965 and they have been talking about sidewalks since then but nothing gets done.  She would like to see us beg, borrow or steal the money for this so please push for the Safe Routes to School program.

Joe Alexander of Powell Custom Homes stated they are having the McGillen’s Crossing grand opening on August 25th and invitations to all will be sent to the office.

17.      COMMENTS FROM COUNCIL

Markle stated Superintendent Anthony stated he would like the crack sealing bids and gravel bids to go to the DPW Committee for review and recommendations.

Motion by Markle, support by Bemer, to send the crack sealing bids and gravel for 26th Street bids to the DPW Committee.  Roll call vote.  All members voted in favor.  Motion carried.

Bemer stated she has talked to Briar Patch about flowers for the Village Sign, stating they recommended to wait until late September to plant as it has been to hot.  Bemer also stated they would need to be watered on a daily basis.  Superintendent Anthony stated that would be done.   Bemer stated they will put in perennials and mix some annuals in for more color.

Bemer’s second concern was the Village DPW truck being driven home at night by Superintendent Anthony.  She questioned whether he was covered under our liability insurance.  Clerk Goheen stated Anthony was covered to drive the truck home under the Village insurance and stated all Village vehicles and employees are covered 24/7 under our liability insurance.  Bemer felt this would also save gas and maintenance if the truck were parked at the DPW building in off working hours.  Bemer stated Chief does not drive a police car home and did not see a need for the DPW Superintendent to drive one home either during non working hours.

Motion by Bemer, support by Spulick, to have all Village vehicles parked at all times during non working hours. 

Ashbaugh stated she had a problem with voting on this with such short notice and she would like more time to look into this situation. 

Attorney Graham stated someone could make another motion to table this issue that would nullify the previous motion.

Motion by Markle, support by Ashbaugh, to table the vehicle situation for further review.  Roll call vote.  Five members voted in favor.  Bemer and Spulick voted no.  Opposition noted.  Motion carried.

Motion by Ashbaugh, support by Markle, to send the vehicle situation to the Finance Committee for further review and recommendation.  Roll call vote.  Six members voted in favor.  Bemer voted no.  Opposition noted.  Motion carried.

Bemer asked about the banners and flags for the village stating she wondered where they were.

McLean stated the DDA has authorized up to $7,000 for new banners and flags for the Village.

Bemer asked if something could be done about the flags catching on the poles and causing damage to the flag.  Superintendent Anthony stated he was checking into that situation.

18.    ADJOURNMENT. 
The meeting was adjourned @ 8:44 PM