March 3, 2014 UNOFFICIAL MINUTES Page 1 of 6 The regular meeting of the Clare City Commission was called to order at 6:00 p.m. in the Commission Chambers by Mayor Pro Tem Jean McConnell who led the Pledge of Allegiance. Present were: Commissioners Bob Bonham, Jean McConnell, Carolyn (Gus) Murphy, and Karla Swanson. Absent: Pat Humphrey. Also present were Ken Hibl, City Manager; Steve Kingsbury, Treasurer and Finance Director; Diane Lyon, City Clerk; Dale Clark, Water & Wastewater Superintendent; and Dan Dysinger, Grant Township Supervisor. 2. CONSENT AGENDA: Moved by Commissioner Bonham second by Commissioner Swanson to approve the items listed with an asterisk (*) (Agenda, Minutes, Communications, Board & Committee Appointments, and Bills) that are considered to be routine by the City Commission. Ayes: All. Nays: None. Absent: Pat Humphrey. Motion Carried. 3. *APPROVAL OF MINUTES; Consent Agenda Approved. 4. *APPROVAL OF AGENDA: Consent Agenda Approved. 5. PUBLIC COMMENT: None. 6. UNFINISHED BUSINESS: None. 7. NEW BUSINESS: A. APPROVAL OF DEMOLITION BIDS-630 VANGEE RESIDENTIAL STRUCTURE Over a period of approximately six years, we made repetitive attempts to work with property owners of 630 Vangee to repair or demolish the residential structure at this site due to the blighted and unsafe condition of the residential structure. Our attempts failed; consequently, we asked our City Attorney to pursue legal action to authorize demolition of the structure. This approval was obtained approximately three months ago. We have subsequently obtained required lead and asbestos assessments of the residential structure and solicited demolition bids. Four bids were received: Mark Bolle Contracting, Tommie Bauer Contracting, Pat McGuirk Excavating, and Robbin Harsh Excavating. The City was required to initially pay for the costs of lead and asbestos assessment and for the costs of demolition and were assured by an agent of the mortgage company that they will reimburse us for these costs upon receipt of invoices of their payment; we received reimbursement for the costs of the assessment today. If the mortgage company reneges on the demolition costs, we will assess the costs against the property. March 3, 2014 UNOFFICIAL MINUTES Page 2 of 6 The City Commission is asked to approve the bids and authorize the demolition of this structure to eliminate this public safety hazard. DPW Director Al Jessup has made a recommendation to accept the low bid from Mark Bolle Contracting in the amount of $5,960.00 and authorize him to proceed with the work. Motion by Commissioner Bonham second by Commissioner Swanson to approve the bids and authorize Bolle Contracting to begin demolition of the residential structure at 630 Vangee Street in Clare by adoption of Resolution 2014-025. Roll call vote: Yeas: Commissioners Bob Bonham, Jean McConnell, Carolyn (Gus) Murphy, and Karla Swanson. Nays: None. Absent: Pat Humphrey. Motion Carried. B. PROPOSAL FOR MDEQ-MANDATED WORK-HATTON TOWNSHIP LANDFILL As the Commission is aware, we met with representatives of the Michigan Department of Environmental Quality (MDEQ) in December 2013 regarding the Hatton Township Landfill. Based on discussions at that meeting, the City is required to complete a significant number of tasks at the landfill that require the assistance, advise, and guidance of an environmental consultant. And as the City enjoyed a productive experience utilizing the services of Williams & Works for previous work accomplished at the Hatton Township Landfill, the City Commission authorized the Commission approved a sole-source solicitation for a proposal from this firm to accomplish the new work at the landfill. The cost to the City to complete this initial round of work will be $19,900; however, MDEQ could mandate additional, subsequent work. We will ask MDEQ for reimbursement of these costs from the escrow fund established to fund these types of costs, but if our request for reimbursement is approved, we will have to repay the escrow fund within a subsequent 18-month period because we are required to maintain a balance of $200,000 in that fund. The Williams & Works proposal has been provided for the Commission’s consideration. The City Commission is asked to approve the proposal and authorize Williams & Works to initiate the work required by MDEQ. Motion by Commissioner Swanson second by Commissioner Bonham to approve the Williams & Works proposal by adoption of Resolution 2014-026. Roll call vote: Yeas: Commissioners Bob Bonham, Jean McConnell, Carolyn (Gus) Murphy, and Karla Swanson. Nays: None. Absent: Pat Humphrey. Motion Carried. C. CORRECTION TO ACT 51 RESOLUTION – COLONVILLE ROAD By adoption of its Resolution 2014-008, the City accepted jurisdiction of a portion of Colonville Road, and the documentation from the City and the Clare County Road Commission to execute the transfer and adjust the Act 51 Map to coincide with the transfer was forwarded to the Michigan Department of Transportation (MDOT). March 3, 2014 UNOFFICIAL MINUTES Page 3 of 6 MDOT discovered an error in the transfer process in that the City can only accept jurisdiction of that portion of the roadway that is contiguous to the property that has been transferred – in this case only .75 of a mile of the roadway versus the entirety of the roadway from Clare Avenue to Eberhart Road. The error requires correction, thus a new resolution has been prepared (Resolution 2014-027). The City Commission is asked to approve the corrected resolution. Note: the City has proposed that the County Road Commission and the City enter into an intergovernmental agreement for the remaining portion of the roadway (the .25-mile to Eberhart); we hope to have a proposed agreement completed for consideration at the March 17th meeting. There is no direct cost to approving the corrected resolution. Costs (approx. $112K) will be incurred by the City if the CDBG grant to upgrade Colonville Road is approved. Without the approved resolution, we cannot accept the grant if it is approved as we would not have jurisdictional control of the road. Motion by Commissioner Bonham second by Commissioner Murphy to approve the corrected Act 51 Resolution 2014-027. Roll call vote: Yeas: Commissioners Bob Bonham, Jean McConnell, Carolyn (Gus) Murphy, and Karla Swanson. Nays: None. Absent: Pat Humphrey. Motion Carried. D. COMMUNITY DEVELOPMENT BLOCK GRANT APPLICATION – COLONVILLE ROAD PROJECT In mid-February 2014 City submitted a Part 1 Application for Community Development Block Grant (CDBG) to reconstruct East Colonville Road from its present deteriorated state to a three-lane, all season road capable of supporting significantly increased truck and heavy equipment traffic related to the City’s new industrial park. We have been invited to submit a Part 2 Application for the grant by the Michigan Economic Development Corporation. Prior to submittal of the grant application, the City Commission is required to host a public hearing related to the proposed project. The hearing notice must be published at least five days prior to the conduct of the hearing; we have published notice in two local newspapers. Prior to holding the hearing, the following salient points of the proposed project and related grant application should be discussed: - The total value of the project ($2.3M – includes $1.5M private investment by Northern Logistics during the next two years; $599,940 in CDBG funds; $100K in local contributions; and $112K City investment). - The jobs created as a result of the project (60 jobs created by Northern Logistics over the next two-year period). - The proposed timeline for project completion (construction is expected to commence and be completed in 2015; however, job creation and private investment will continue through 2016). The City Commission is asked to hold the public hearing and subsequently authorize the submittal of the grant application. March 3, 2014 UNOFFICIAL MINUTES Page 4 of 6 Motion by Commissioner Bonham second by Swanson to open the public hearing. Roll call vote: Yeas: Commissioners Bob Bonham, Jean McConnell, Carolyn (Gus) Murphy, and Karla Swanson. Nays: None. Absent: Pat Humphrey. Motion Carried. Public Comment: None. Grant Township Supervisor Dan Dysinger requested clarification as to why the Colonville Road Project does not extend all the way to Eberhart Road. The CDBG will only allow us to fund the portion of the roadway that is contiguous to the city and up to the driveway of Northern Logistics. The city does not have jurisdiction of the roadway all the way to Eberhart Road (approx .25 mile shy). The Colonville Road project is for the construction of a Class A three lane roadway extending from the 127 exit ramp eastward and approximately 500’ to 600’ feet shy of Eberhart Road Motion by Commissioner Bonham second by Murphy to close the public hearing. Roll call vote: Yeas: Commissioners Bob Bonham, Jean McConnell, Carolyn (Gus) Murphy, and Karla Swanson. Nays: None. Absent: Pat Humphrey. Motion Carried. Motion by Commissioner Bonham second by Commissioner Swanson to authorize the submittal of the grant application by adoption of Resolution 2014-028. Roll call vote: Yeas: Commissioners Bob Bonham, Jean McConnell, Carolyn (Gus) Murphy, and Karla Swanson. Nays: None. Absent: Pat Humphrey. Motion Carried. E. FIREWORKS PERMIT The Summerfest Committee plans to sponsor/host the annual 4th of July event in the City, to include the fireworks display. The State of Michigan requires the governing body hosting fireworks displays to approve a permit for the display. The Commission has traditionally approved the permit in the past and is asked to do so again this year. Motion by Commissioner Swanson second by Commissioner Murphy to approve the permit by adoption of Resolution 2014 030. Roll call vote: Yeas: Commissioners Bob Bonham, Jean McConnell, Carolyn (Gus) Murphy, and Karla Swanson. Nays: None. Absent: Pat Humphrey. Motion Carried. F. AMENDMENT TO ENGINEERING AGREEMENT AND ENGINEERING CHECKLIST-GFA By adoption of its Resolution 2014-004, the City Commission approved an engineering agreement with Gourdie-Fraser, Incorporated for engineering services associated with the development of the City’s new industrial park.