Approval of Agenda

Council Member Scheid made a motion to approve the agenda as presented, supported by Council Member Cooper.

The question on the motion was called and the result of the voting is as follows:

            Ayes:               Council Members Cooper, Scheid, Jones and Gunderson

            Nays:               None

Public Comments

There were no public comments.

Consent Agenda

Reports by Council Liaisons

Council Member Scheid stated the Housing Commission met, and it was discussed that there is 100% occupancy at this time.  A couple of the units will empty out. 

Council Member Jones stated the Planning Commission will meet next Tuesday night.  They are looking for one more member.  If anyone is interested, an application is available at city hall. 

Council Member Cooper stated he missed the Rec Board meeting last Monday.  Bruce let him know what went on.  Regarding the bank stabilization project, the DNR will not allow them to touch the bank.  They will widen the trail from the Library to East Riverside Park and move the road over toward the Bel.  W&W is working on the project.  JJR in Ann Arbor will be working on the park design, and the property or park needs to be named.  That will be brought to council.  They should follow up with the group on the pickleball court.  Funds will be available from them. 

Mayor Gunderson stated he had no meetings   The Historic District Commission will be at 6 p.m. this Thursday.  The Library Board will meet on January 25, 2016 at 5 p.m.

Unfinished Business

There was no unfinished business.

New Business

There was no new business.

Public Comments

Dave Hodges, 4833 Flat River Trail, gave a county commission report.  The first meeting of January was held on January 12, 2106 and was an organizational meeting.  Jack Shattuck is the chair.  Mr. Hodges serves on three of the four standing committees, including audit, facilities and personnel.  He is also a member of ICEA and WMRPC.  He will meet with Mr. Yeomans and will go over the things they do on the board.  Today was a meeting of the whole and presentations by department heads.  Central Dispatch is extremely efficient and up to date.  They will be hiring a new dispatcher, and he described the hiring process.  In Building and Grounds, building permits have gone from 300 to 577 last year.  This year will be consistent.  It is fairly inexpensive to borrow now and people are confident in their work environment.  The election can have an effect on businesses.  The maintenance building is complete.  They will do the parking area in the spring.  He did a site plan for the parking lot at no cost, which was positive.  He is serving on Rails to Trails with Ron.  Ron is a huge asset on that board, as well.

Jeff Hunter, Zahm Rd., asked if the house on Bridge Street was up for bid? 

City Manager Brown stated it was. 

Mr. Hunter stated he didn’t think it was, because he knows people that could have done it for less than $10,000.  He stated they talk about hiring local, but they continually piss them off.  One contractor he knows couldn’t bid on the job.  The city goes after every business for signs and sidewalks and they don’t go after the mall.  Shouldn’t it be condemned if the fire suppression doesn’t work?  There is a letter that states it doesn’t work.  He asked if they would tell the mall to fix the roof and heating and cooling?  Keven Hall got garbage for painting his name on his building.  The mall sign was torn down.  They used city employees to tear it down and put one up.  He asked if they would do that for other businesses in town with city employees?

Audit Report – Vredeveld Haefner

Peter Haefner, Vredevelt Haefner, discussed the audit report.  He stated he sometimes brings historical information, but a new accounting standard was introduced and he wanted to go over that.  Page 1 on the financial statements is their opinion and the city received the highest opinion given.  On page 5 there was a summary of assets and liabilities.  There was a new standard for the MERS defined benefit system, where a liability is recorded for future benefits and it is offset with accumulated assets.  The difference between assets and liabilities is $900,000.  That directly impacted the liability in the current year, the bottom line.  The city has contributed as appropriate, and they are now phasing out the plan for new employees.  He described the funds with positive fund balances.   Sewer, water and transit had reductions, because as the items are depreciated it drops the bottom lines.  They issued an internal controls opinion and letter to the board regarding responsibilities.  There are several opportunities to improve internal controls.  Becky has identified the means of addressing the concerns they have for internal controls. 

Council Member Jones asked if there were underfunded pensions?

Mr. Haefner stated the city can make contributions as required, but poor investment performance is the difference in how underfunded it is.  The city is less underfunded than any others, actually they are doing quite well.  It is still a hurdle.  The city will make contributions until it is fully funded.  The liability will go up or down depending on how long people will draw.

The city received the Certificate of Achievement for Excellence in Financial Reporting. 

City Manager Comments

City Manager Brown stated Becky stepped into the job at a difficult time.  This is her first audit and she is aware of the concerns of the auditors in the process.  She has already made changes.  She has done a great job.

He has a frequent need for aerial photograph.  He called the county administrator and she sent John Bush, who installed a complete system with aerial photographs and fields they can superimpose addresses, zoning, etc.  It will be extremely helpful to him and if they need aerial photography and property information, it will also be very helpful.  There was no charge.  He appreciates Stephanie in making it available. 

Council Comments

Council Member Jones stated it seems there was talk of bidding the house.  They are working on the blight bode.  There will be a new ordinance on blight enforcement.  He thanked the city crew for their busy time of keeping the streets plowed and things running.    

Council Member Cooper asked for an update on the S. Bridge Street meeting.   

City Manager Brown stated the S. Bridge Street project started a couple years ago, and was languishing.  There was a request to MDOT for partial funding and that was approved.  He met with MDOT and the Ionia County Road Commission.  The project will be constructed over two years in 2016 and 2017.  He met with the industrial manufacturers, tool and die, and asked if they were aware of the change and they were not.  He thought it was important to have an informational session for property owners on S. Bridge and those streets that dead end on S. Bridge.  Tomorrow night they will have the engineer, Ernie and Bruce to explain the project and timing.

Council Member Cooper stated there were personnel changes in the Police Department.  The detective has moved into the sergeant role.  There was a pay increase of $2,500.  He is being paid by PPT money.

City Manager Brown stated that fund (PPT) goes into the General Fund.  He is expecting that there are seven key employees that will be retiring in 2017.  There will be a lot of transition and he wants that transition seamless.  Bill Ribbens, the wastewater treatment plant operator, has given his one year notice.  The State of Michigan will not certify someone for that job until they have run a similar facility, or the city could privatize it. They are looking at that and he is working with Ernie on transitioning to a new operator.  He will be taking care of those transitions and there will be budget adjustments to deal with that.  There will be some significant changes over the next year and one-half. 

Council Member Cooper stated the police department was provided $6,000.

Mayor Gunderson stated they hired a part-time officer.    

City Manager Brown stated council hired him to be aware of changes and take the necessary actions to make sure they are not stuck in the back when moving from one quality person to another.  He will look at the financial implications on the lagoon operator. 

Council Member Scheid had no comments. 

Mayor Gunderson thanked everyone for coming tonight and Peter for the report.  He thanked Becky for stepping in and applauded her for what she has done.   

Adjournment

Council Member Scheid moved to adjourn the meeting, supported by Council Member Cooper.

Ayes:               Council Members Cooper, Scheid, Jones and Gunderson

            Nays:               None

The Mayor adjourned the meeting at 7:41 p.m.