CITY OF MENOMINEE, MICHIGAN

SPECIAL COUNCIL PROCEEDINGS

AUGUST 1, 2005

 

 

A special meeting of the Menominee City Council, City of Menominee, County of Menominee, State of Michigan, was held Monday, August 1, 2005 at 5 p.m. in the Municipal Complex Council Chambers.

 

The Honorable George W. Krah called the meeting to order and led the pledge of allegiance to the flag.

 

PRESENT:        Mayor Krah; Council Members Hudon, Jasper, Mick, Organ, Plemel, and Sorensen

ABSENT:                Council Members Fernstrum and Schloegel (both excused)

 

PRESENT:  7                ABSENT:  2

 

A motion was made by Council Member Hudon and seconded by Council Member Organ to excuse Council Members Fernstrum and Schloegel from the meeting.  This motion was carried unanimously.

 

 

Mayor Krah opened the special meeting that he called for the purpose of considering the following agenda:

 

1)                  Pledge of allegiance to the flag.

2)                  Public comment on agenda items only.

3)                  Public hearing on the proposed special assessment district for sidewalk construction on 10th Avenue from 2nd Street to 10th Street.

4)         The Election Commission on the polling places for future elections.

5)         The Parks and Recreation Committee on accepting a proposal to attempt to move and preserve the arch at Spies Field.

6)            Resolution approving the Municipal Purchase Contract for financing of the Spies Field fund raising pledges with River Valley State Bank.

7)         Ballot for the MML Worker’s Compensation Fund Board.

8)            Certification of officer and employee delegates and alternates to the MERS annual meeting.

9)         Public comment.

10)            Adjourn.

 

 

PUBLIC COMMENT:

 

Mayor Krah opened the public comment session that was called for the purpose of hearing citizen comments on agenda items only.

 

No one was heard. 

 

A motion was made by Council Member Jasper seconded by Council Member Mick to close the public comment session.  This motion was carried unanimously.

 

 

PUBLIC HEARING:

 

Mayor Krah opened the public hearing that was called for the purpose of hearing citizen comments on the proposed special assessment district for sidewalk construction on 10th Avenue from 2nd Street to 10th Street.

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Council Member Plemel said that Larry Roetzer, 624 10th Avenue, was against the project.

 

Ron Young spoke on behalf of the Methodist Church, 601 Tenth Avenue, and said they would like all new sidewalk and not keep any of the old.

 

Mr. Cowell explained they are only assessed as necessary.  Some will be replaced but only for our purpose and not assessed.

 

A motion was made by Council Member Plemel and seconded by Council Member Jasper to close the public hearing.  This motion was carried unanimously.

 

 

COMMITTEE REPORT:

 

The Election Commission reported that they had reviewed polling places within the City and they recommended that the four polling places for future elections all be located at the Menominee High School Cafeteria.

 

S/ELECTION COMMISSION

 

A motion was made by Council Member Plemel and seconded by Council Member Sorensen to adopt the foregoing report.  This motion was carried unanimously.

 

 

COMMITTEE REPORT:

 

At a July 28, 2005 meeting the Parks and Recreation Committee reviewed the proposal to attempt to move and preserve the arch at Spies Field submitted by Kakuk Construction, Inc. in the amount of $60,000.00 and they recommended that it be accepted.

 

S/PARKS AND RECREATION COMMITTEE

 

A motion was made by Council Member Plemel and seconded by Council Member Organ to adopt the foregoing report.  This motion was carried unanimously.

 

 

The following resolution was the next agenda item:

 

CITY OF MENOMINEE

COUNTY OF MENOMINEE

STATE OF MICHIGAN

 

RESOLUTION APPROVING MUNICIPAL PURCHASE CONTRACT

 

Minutes of a special meeting of the City Council of the City of Menominee, County of Menominee, State of Michigan, held on the 1st day of August, 2005 at 5 p.m.

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August 1, 2005

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PRESENT:            Krah, Hudon, Jasper, Mick, Organ, Plemel, and Sorensen

ABSENT:            Fernstrum and Schloegel

 

The following preamble and resolution were offered by Member Plemel and supported by Member Jasper:

 

WHEREAS, the City Council of the City of Menominee, County of Menominee, State of Michigan (the “City”), determines it to be necessary for the public health, safety and welfare of the City and its residents to acquire certain real and personal property consisting of the acquisition, construction, renovation and equipping of a recreational facility known as Spies Field (the “Project”); and

 

WHEREAS, under the provisions of Act No. 99, Public Acts of Michigan, 1933, as amended (“Act 99”), the City is authorized to enter into any contracts or agreements for the purchase of the Project to be paid for in installments over a period of not to exceed fifteen (15) years and not to exceed the useful life of the Project acquired as determined by resolution of the City Council; and

 

WHEREAS, the outstanding balance of all purchases by the City under Act 99, exclusive of interest, shall not exceed one and one quarter percent (1-1/4%) of the taxable value of the real and personal property in the City at the date of such contract or agreement; and

 

WHEREAS, the City desires to finance the purchase of the Project in an amount of not to exceed $600,000 to be financed pursuant to the Municipal Purchase Contract in the form attached hereto as Exhibit A (the “Agreement”); and

 

WHEREAS, the purchase of the Project pursuant to the Agreement will not result in the outstanding balance of all such purchases in excess of the limitation contained within Act 99 as set forth above; and

 

WHEREAS, the City has received an offer for the financing of the Project from River Valley State Bank of Menominee, Michigan (the “Bank”) pursuant to the request of the City; and

 

WHEREAS, the Agreement has been prepared setting forth the terms and provisions of the financing of the sale of the Project to the City and the payment by the Bank and the City therefore, and it is the desire of the City Council to approve the purchase of the Project and to approve the general terms of the financing thereof as set forth in the Agreement and the execution thereof, subject to the completion of negotiations with the Vendor (as defined in the Agreement) and the Bank on the timing of the sale and purchase.

 

NOW, THEREFORE, BE IT RESOLVED THAT:

 

1.                   The Agreement is hereby approved for the financing of the Project with the Bank, in substantially the form attached hereto as Exhibit A, with such additions, change and modifications as shall be approved by the City Manager.  The financed purchase price of the Project shall not exceed $600,000; and principal payments shall be made on the dates and in the amounts as set forth in the Agreement.  The Mayor and City Clerk are hereby authorized to execute the Agreement when in final form and deliver it to the Bank.

 

2.                   The useful life of the Project is hereby determined to be not less than fifteen (15) years.

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3.                   The Mayor, Clerk, and City Manager, or their designee are each authorized to execute such additional documentation as shall be necessary to effectuate the closing contemplated by the Agreement.

 

4.                   The City hereby agrees to include in its budget for each year, commencing with the present fiscal year, a sum which will be sufficient to pay the principal of and interest coming due under the Agreement during such fiscal year.  In addition, the City hereby pledges to levy ad valorem taxes on all taxable property in the City each year in an amount necessary to make its debt service payments under the Agreement, subject to applicable constitutional, statutory, and charter tax rate limitations.

 

5.                   The City covenants that, to the extent permitted by law, it shall take all actions within its control necessary to maintain the exclusion of the interest component of the payments due under the Agreement from adjusted gross income for general federal income tax purposes under the Internal Revenue Code of 1986, as amended (the “Code”), including but not limited to, actions relating to the rebate of arbitrage earnings, if applicable.

 

6.                   The acquisition of the Project and the approval of the Agreement are found and declared to be for a valid public purpose and in the best interest of the health and welfare of the residents of the City.

 

7.                   The City hereby designates the agreement as a “qualified tax exempt obligation” for purposes of deduction of interest expense by financial institutions pursuant to the Code.

 

8.                   All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded to the extent of such conflict.

 

A motion was made by Council Member Plemel and seconded by Council Member Hudon to adopt the foregoing resolution.  This motion was carried unanimously.

 

 

A motion was made by Council Member Plemel and seconded by Council Member Jasper to approve those on the ballot for the Board of Trustees for the MML Workers Compensation Fund.  This motion was carried unanimously.

 

 

The next agenda item was the certification of delegates and alternates to the MERS Annual Meeting as follows:

 

Officer Delegate Information:

 

The Officer Delegate shall be an officer member who holds a department head position or above, exercises management responsibilities, and is directly responsible to the legislative and/or executive branch of local government.

 

Officer Delegate:                                  Officer Alternate:         


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Officer Delegate Appointment:

 

By official action of the governing body on ______ the Officer Delegate and Alternate listed above were appointed to serve at the 2005 Annual Meeting.

 

Employee Delegate Information:

 

The Employee Delegate shall be an employee member who is not responsible for management decisions, receives direction from management and, in general, is not directly responsible to the legislative and/or executive branch of local government.

 

Employee Delegate:            Kathy Brofka              Employee Alternate:            David Haglund

 

Employee Delegate Election:

 

By secret ballot conducted by an authorized officer on August 8, 2005, the Employee Delegate and Employee Alternate listed above were elected to serve at the 2005 MERS Annual Meeting.

 

A motion was made by Council Member Plemel and seconded by Council Member Sorensen to adopt the foregoing certification.  This motion was carried unanimously.

 

 

PUBLIC COMMENT:

 

Mayor Krah opened the public comment session.

 

No one was heard.

 

A motion was made by Council Member Plemel and seconded by Council Member Jasper to close the public comment session.  This motion was carried unanimously.

 

 

ADJOURN:

 

A motion was made by Council Member Organ and seconded by Council Member Plemel to adjourn the meeting.  This motion was carried unanimously.

 

 

 

 

 

Thomas F. DeNike, City Clerk/Treasurer

 

 

 

/skj