REGULAR MINUTES
PERE MARQUETTE DEPOT
Tuesday, March 1, 2016
A meeting of the City Council of the City of Belding, Michigan was convened in open and public session at 7:00 p.m. on Tuesday, March 1, 2016.
Mayor Gunderson delivered the invocation.
The Mayor led the audience in the Pledge of Allegiance.
The City Clerk took the roll call:
Members Present: Council Members Dennis Cooper, Mike Scheid, Jerome Lallo, Tom Jones and Ronald Gunderson
Members Absent: None
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, Lallo, Jones and Gunderson
Nays: None
Public Comments
There were no public comments.
Guest – Phyllis Jenkins, Museum Board annual report
Phyllis Jenkins gave the Museum Board annual report.
Good Neighbor Award – Kiley Walch
Council Member Lallo presented the Good Neighbor Award to Kiley for always thinking of others, her 2016 Christmas for Kids project, and involvement with the Helen DeVos Children’s Hospital.
Kiley presented the city with a painting of the city hall that she did last August for the talent portion of the Miss Belding Pageant.
Consent Agenda
- Approve Independent Bank Checks 65712 to 65773 in the amount of $130,608.29. Approve Chemical Bank Checks 6894 to 6901 in the amount of $40,387.67 and Checks 6902 to 6909 in the amount of $67,237.05.
- Approve Minutes: Regular scheduled meeting, February 16, 2016
- Library Board Appointment – Neil Pettifor
Council Member Scheid made a motion to approve the consent agenda, 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, Lallo, Jones and Gunderson.
Nays: None.
Following is the resolution contained in the Consent Agenda.
C. Library Board Appointment – Neil Pettifor
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN, APPOINTING G. NEIL PETTIFOR TO THE ALVAH N. BELDING MEMORIAL LIBRARY BOARD.
WHEREAS, the City Council of the City of Belding, Michigan, desires to fill the vacated term of Library Board member Henry Kuhfeldt; and,
WHEREAS, the City Council desires to appoint G. Neil Pettifor as a member of the Library Board; and,
WHEREAS, the Alvah N. Belding Memorial Library Board members have recommended the appointment of G. Neil Pettifor to the board; and,
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan, that G. Neil Pettifor be, and the same hereby is, appointed as member of the Alvah N. Belding Memorial Library Board with a term to commence on March 1, 2016, and to expire on December 31, 2018.
Reports by Council Liaisons
Council Member Jones stated the Planning Commission did not have a quorum. They still need one more member to sit on the Planning Commission. The two public hearings were adjourned to the March 29, 2016 meeting.
Council Member Cooper stated they had no meetings.
Council Member Scheid stated the Housing Commission was completely filled up until last month, now they have four units to renovate. Things are moving along smoothly.
Council Member Lallo state Phyllis gave the Museum report and he has nothing from the Labor Day Committee.
Mayor Gunderson stated the Library met for their meeting. They will meet this Friday for director interviews. Tonight council voted in Neil Pettifor for the Library Board. The DDA will be meeting this Thursday at noon. They are going over the Personnel Policies at the library.
Unfinished Business
There was no unfinished business.
New Business
A. Budget amendment for FY 2015/16
The City Clerk read the preamble to the resolution.
Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Lallo.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN AMENDING THE FISCAL YEAR 2015/16 BUDGET.
WHEREAS, on May 19, 2015, the Council of the City of Belding, Michigan adopted its 2015/16 Fiscal Year Budget for the administration of all funds and activities; and,
WHEREAS, a deficit occurred in the Internal Services Fund at the end of FY 2014/15; and,
WHEREAS, the Fiscal Year 2015/16 Budget must be changed to reflect this adjustment.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that the Fiscal Year 2015/16 Budget be amended.
The question on the resolution was called and the result of the voting is as follows:
Ayes: Council Members Cooper, Scheid, Lallo, Jones and Gunderson
Nays: None
B. Consider an Ordinance to rescind the elimination of tax exemptions for housing developments related to PILOT (Payment in lieu of taxes)
The City Clerk read the preamble to the ordinance.
Council Member Scheid moved the first reading of the ordinance, and the motion was supported by Council Member Lallo.
AN ORDINANCE TO REPEAL CITY CODE SECTIONS 30-60, 30-61 AND 30-62 OF CHAPTER 30, ARTICLE II, DIVISION 3 TO RESCIND THE ELIMINATION OF TAX EXEMPTIONS FOR HOUSING DEVELOPMENTS
THE CITY OF BELDING ORDAINS:
SECTION 1. Sections 30-60, 30-61 and 30-62 of Chapter 30, Article II, Division 3 of the Code of Ordinances of the City of Belding are hereby repealed to rescind the prior election of the City of Belding for the elimination of tax exemptions for housing developments.
SECTION 2. Severability:
The various parts, section and clauses of this Ordinance are hereby declared to be severable. If any part, sentence, paragraph, section or clause is adjudged unconstitutional or involved by any court of competent jurisdiction, the remainder of this Ordinance shall not be affected thereby.
SECTION 3. Effective Date:
This Ordinance will become effective ten (10) days after its adoption and upon publication of a newspaper in general circulation within the City of Belding.
City Manager Brown stated Jeff Gates, owner of Crosswinds Manor Apartments was present and they have asked for the PILOT designation. The money would permit $700,000 of improvements to the property. They are willing to pay the 10% rate. The net loss to the city is $2,500 a year. The request is by TJA Acquisitions, and would require rescission of the ordinance and adoption of a new ordinance.
C. Consider an Ordinance regarding the request by TJA Acquisitions for the PILOT (Payment in lieu of Taxes) and tax exemption for the Crosswinds Manor Apartments
The City Clerk read the preamble to the ordinance.
Council Member Scheid moved the first reading of the resolution and the motion was supported by Council Member Lallo.
AN ORDINANCE TO AUTHORIZE the PAYMENT of an annual service
charge IN LIEU OF TAXES for RESIDENTIAL UNITS SERVING low income
OR MODERATE INCOME PERSONS in accordance with the State
Housing Development Authority, Act 346 of the public acts of
michigan of 1966, as amended, AND MATTERS RELATED THERETO
THE CITY OF BELDING ORDAINS:
Section 1. Purpose. This Ordinance authorizes and approves an annual service charge in lieu of taxes for residential housing developments that: (a) serve Low Income or Moderate Income Persons (as defined in the State Housing Development Authority Act, Act 346 of the Public Acts of Michigan of 1966 (1966 PA 346, as amended; MCL125.1401 et seq), and this Ordinance); (b) are financed or assisted by USDA-RD or the Authority in accordance with Act 346; (c) are located within the City of Belding; and (d) comply with this Ordinance.
Section 2. Title. This Ordinance shall be known and cited as the “City of Belding Tax Exemption Ordinance.”
Section 3. Preamble. It is acknowledged that it is a proper public purpose of the State of Michigan and its political subdivisions to provide housing for low income citizens and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with Act 346. The City is authorized by Act 346 and this Ordinance to establish or change the annual service charge to be paid in lieu of taxes by any and all classes of housing exempt from taxation under Act 346 at any amount it chooses not to exceed the taxes that would be paid but for Act 346. It is further acknowledged that housing for low income persons and families is a public necessity, and as the City will be benefitted and improved by such housing, the encouragement of the same by providing certain real-estate tax exemptions for such housing is a valid public purpose; further, that the continuance of the provisions of this Ordinance for tax exemption and the service charge in lieu of taxes during the period contemplated in this Ordinance are essential to the determination of economic feasibility of housing developments which are constructed and financed in reliance on such tax exemption.
The City acknowledges that T J Crosswinds Manor Limited Dividend Housing Association Limited Partnership (the “Sponsor” as defined in Section 4 of this Ordinance) has committed to rehabilitate, own and operate a housing development identified as “Crosswinds Manor Apartments” on certain property located on 901 N. Bridge Street, Belding, Michigan, which is legally described in Section 4.G. of this Ordinance, to serve Low Income or Moderate Income Persons, and that the Sponsor has offered to pay and will pay to the City, on account of the Housing Development, an annual service charge for public services in lieu of all taxes.
Section 4. Definitions. The terms used within this Ordinance shall have the following meanings:
A. “Act” means the State Housing Development Authority Act, being Act 346 of the Public Acts of Michigan of 1966, (1966 PA 346, as amended; MCL 125.1401 et seq).
B. “Annual Shelter Rents” means the total actual collections during each calendar year from all occupants of a housing development representing rents or occupancy charges, which rental amounts shall be exclusive of charges for gas, electricity, heat, or other utilities furnished to the occupants.
C. “Authority” means the Michigan State Housing Development Authority.
D. “Class” means the Housing Development known as Crosswinds Manor Apartments for Low Income or Moderate Income Persons.
E. “Contract Rents” are as defined by the U. S. Department of Housing and Urban Development in regulations promulgated pursuant to the U. S. Housing Act of 1937, as amended.
F. “Federally-Aided Mortgage” means any of the following:
(i) A below market interest rate mortgage insured, purchased, or held by the Secretary of the Department of Housing and Urban Development (“HUD”) or United States Department of Agriculture – Rural Development (“USDA-RD”);
(ii) A mortgage receiving interest reduction payments provided by the HUD or USDA – RD;
(iii) A Housing Development to which the Authority allocates low income housing tax credits under Section 22b of the Act; or
(iv) A mortgage receiving special benefits under other federal law designated specifically to develop low and moderate-income housing, consistent with the Act.
G. “Housing Development” means a development which contains a significant element of housing for persons of low income and such elements of other housing, commercial, recreational, industrial, communal, and educational facilities as the Authority determines to improve the quality of the development as it relates to housing for persons of low income. For the purposes of this Ordinance, “Housing Development” means Crosswinds Manor Apartments located on the property legally described as:
CITY OF BELDING PT SW 1/4 SEC 2 T8N R8W COM W 1/4 PT, TH S 569.24 FT, TH E 743.37 FT TO POB; TH E 575 FT TO C/L BRIDGE ST, TH S 407.36 FT, TH W 575 FT, TH N 411.03 FT TO POB
H. “Low Income or Moderate Income Persons” means persons and families eligible to reside in the Housing Development as defined in the Act, as amended. I. “Sponsor” means person(s) or entities which have applied to the Authority for the Tax Credits to finance a Housing Development. For the purposes of this Ordinance, the Sponsor is T J Crosswinds Manor Limited Dividend Housing Association Limited Partnership.
J. “Tax Credits” means the low income housing tax credits made available by the Authority to the Sponsor for rehabilitation of the Housing Development by the Sponsor in accordance with the Low Income Housing Tax Credit Program administered by the Authority under Section 42 of the Internal Revenue Code of 1986, as amended.
K. “USDA-RD” means the United States Department of Agriculture, Rural Services Division.
L. “Utilities” means fuel, water, sanitary sewer service and/or electrical service, which are paid by the Housing Development.
Section 5. Class of Housing Development. This Ordinance shall apply only to the Housing Development to the extent that the Housing Development provides housing for Low Income and Moderate Income Persons and is financed or assisted by USDA-RD or the Authority pursuant to the Act.
Section 6. Establishment of Annual Service Charge.
A. The City acknowledges that the Sponsor and USDA-RD and/or the Authority have established the economic feasibility of the Housing Development in reliance upon the enactment and continuing effect of this Ordinance and the qualification of the Housing Development for exemption from all ad valorem property taxes and payment of an annual service charge in lieu of ad valorem taxes in an amount established in accordance with this Section. In consideration of the Sponsor’s offer to rehabilitate, own and operate the Housing Development, the City agrees to accept payment of an annual service charge for public services in lieu of all ad valorem property taxes that would otherwise be assessed to the Housing Development under Michigan law.
(1) Effective upon the adoption of this ordinance and subject to the receipt by the City of the “Notification of Exemption” (or such other similar notification) by the Sponsor and/or the Authority, the annual service charge shall be equal to ten (10%) percent of Annual Shelter Rents.
B. The Housing Development, and the property on which it is constructed, shall be exempt from all ad valorem property taxes from and after the commencement of rehabilitation of the Housing Development by the Sponsor under the terms of this Ordinance.
Section 7. Limitation on the Payment of Annual Service Charge. Notwithstanding Section 6, if any portion of the Housing Development is occupied by other than Low Income and Moderate Income Persons, the full amount of the taxes that would be paid on those units of the Housing Development if the Housing Development were not tax exempt shall be added to the service charge in lieu of taxes.
Section 8. Contractual Effect of Ordinance. Notwithstanding the provisions of Section 15(a) (5) of the Act to the contrary, and subject to the terms of this Ordinance including, but not limited to Section 11 herein, this Ordinance constitutes a contract between the City and the Sponsor to provide an exemption from ad valorem property taxes and to accept the payment of an annual service charge in lieu of such taxes, as previously described in this Ordinance. It is expressly recognized that the Authority and USDA-RD are third party beneficiaries to this Ordinance.
Section 9. Payment of Service Charge. The annual service charge in lieu of taxes shall be payable to the City in the same manner as ad valorem property taxes are payable, to the City and distributed to the several units levying the general property tax in the same proportion as paid with the general property tax in the previous calendar year. The annual payment shall be paid on or before May 1 of each year for the previous calendar year. Collection procedures shall be in accordance with the provisions of the General Property Tax Act (1893 PA 206, as amended; MCL 211.11, et seq.
Section 10. Duration. This Ordinance shall remain in effect and shall not terminate for so long as the Housing Development remains subject to a Federally Aided Mortgage and so long as the housing development submits the required annual notification of exemption pursuant to M.C.L. 125.1415a(1), as amended. The term of this Ordinance shall commence upon the issuance of the Notification to Local Assessor of Exemption as issued by the Authority.
Section 11. Filing of Annual Audit. The Sponsor, or its successor, shall file a copy of any and all annual audits required to be provided to the federal government, the State of Michigan, and/or the Authority simultaneously with the City. The audit shall include detail with respect to occupancy of the Housing Development, Annual Shelter Rents received from the Housing Development, and the cost for utilities during the audit period.
Section 12. Publication; Effective Date. This Ordinance shall become effective 10 days after publication of a summary of its provisions in a newspaper of general circulation in the City.
Section 13. Severability. The various sections and provisions of this Ordinance shall be deemed to be severable, and should any section or provision of this Ordinance be declared by any court of competent jurisdiction to be unconstitutional or invalid the same shall not affect the validity of this Ordinance as a whole or any section or provision of this Ordinance, other than the section or provision so declared to be unconstitutional or invalid.
Section 14. Repeal. All ordinances or parts of ordinances in conflict with this Ordinance are repealed to the extent of such inconsistency or conflict.
Section 15. Effective Date. This Ordinance shall become effective on __________ _ as provided in the City Charter.
Jeff Gates described the background of the apartment complex and plans for renovations.
They would like to be eligible to compete for low income housing tax credits. They have received 35-40 awards over the last 15 years. This would allow them to preserve affordable housing and do a significant upgrade on the facility. The cost would be over $700,000 to improve the property. The PILOT gives five more points for the application. They would not be successful without a PILOT in the application. The PILOT payment would not take effect until the year after they receive the reservation and close on it. They would still pay ad valorum taxes in 2016. If they do not close until 2017, it would take effect in 2018. There are great residents in the community.
D. Consider adoption of the Personnel Policies and Procedures Manual
The City Clerk read the preamble to the resolution.
Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Lallo.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN APPROVING THE REVISED BELDING PERSONNEL POLICY AND PROCEDURE MANUAL.
WHEREAS, the Personnel Policy and Procedure Manual is in place to set policy and standards for employees of the City of Belding; and
WHEREAS, legal counsel and staff has reviewed the revised Personnel Policy and Procedure Manual and recommends that revisions will be in the best interest of the City, and of its employees.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Belding, Michigan approves the revised Belding Personnel Policy and Procedure Manual.
City Manager Brown stated Ron had made the recommendation to provide five days off in each category of Bereavement Leave on pages 25 and 26.
Council Member Scheid made a motion to approve the Personnel Policy and Procedure Manual with an amendment for five days off for eligible bereavement leave, supported by Council Member Lallo.
The question on the resolution was called and the result of the voting is as follows:
Ayes: Council Members Cooper, Scheid, Lallo, Jones and Gunderson
Nays: None
Public Comments
There were no public comments.
City Manager Comments
There were no city manager comments.
Council Comments
Council Member Lallo thanked council for excusing him while he was in Florida tending to his dad. He is not doing real well and will need a lot more care. Effective tonight, he will resign the city council position to take care of his dad in Florida. He was elected in 2013 and was very honored to be elected, it was a privilege. He is sorry he could not bring a dog park here. He saw a lot of good in the people of Belding. The community helps those in need and comes together. He will miss a lot of wonderful people here. There is a lot to do here. He thanked the boards and committees for all their hard work. There is a dedicated city staff, members of council and former members. He thanked Cory Smith for his pictures and the Ionia Sentinel. He thanked Jodi for all her support. He thought of every resident in every decision. He came prepared with research. He looks forward to coming back to see the progress. He wished the city all the best. He stated it was an honor and privilege to serve. He asked that they keep caring for one another. God bless.
Council Member Jones stated he had one call on the speed zone change. She thought 25 mph was too slow. He will call her back and talk to her. He stated that he didn’t always agree with Jerry, but he always had the best intent for the city. He helped Ron shovel snow at the Veteran’s Memorial. He stated that he respects him, and if he came back he would be a great asset to the city and should get back on council. He thanked him for his service.
Council Member Cooper stated a police officer moved into code enforcement and there is one in the detective position. He asked how they would fill those vacancies?
City Manager Brown stated he met with the Chief of Police and Marci’s time may still involve the Police Department, but basically she will be the code enforcement person. They have talked about having enough manpower to fill the space. With the part-time officer, he hopes to do that. They will need more discussion before the budget. Between now and July they can cover that position with part-time and moving staff around.
Council Member Cooper inquired about the contract with LIFE EMS.
City Manager Brown stated at the end of December, he will ask for bids. He is happy with the service. The only other service is Rockford. He will make a recommendation to the city council.
Council Member Cooper asked if LIFE EMS paid our fire service to go on calls?
City Manager Brown stated the city has a 3-year contract with them. The city pays them $28,000 a year. The fire department provides first responder for emergency events. The patients are transported and stabilized by EMS.
Council Member Cooper asked if the fire department had a contract with Otisco Township?
Finance Director Schlienz stated the Otisco Township contract is $82,000 and the Keene Township contract is $5,000 - $6,000.
Council Member Cooper stated he wants to see those broken down.
Mayor Gunderson stated he could meet with Bruce on that.
Council Member Scheid stated Jerry should take care of his father, as that is what he needs to do. He had citizens asking about the water. If anyone would like to see the water report, he has it. An article in the Grand Rapids Press shows the water is excellent in Belding. They do a good job of taking care of the water. Ernie said there are no lead services in service. There are some in the ground but they are not being used. There is no problem with the water. He thanked everyone for coming on this nasty night and wished them a good evening.
Mayor Gunderson thanked Ernie and the crew for keeping up with the last couple of snowfalls. He appreciates people not parking on the street at night. He thanked the city staff for going over the policies and procedures. There will be more budget amendments as it is that time of year. He stated Jerry has to do for his dad. With what they have been through, he and Jerry have spent a lot of hours on the phone. He is sad to hear he is leaving, but he totally understands. He is doing the right thing. He has been put through the ringer, and has always come prepared, he checked with Bruce if he had questions, was very thorough and very much in the community. He stated he has spent more ribbon cuttings with Jerry and Joe since being on council. He was always there to Coffee with Council. He has learned a lot from Jerry. He gives you a perspective on things. He has been open minded in listening to people. It has been a pleasure serving with him and he will be missed. There will be 30 days to replace him. They will take applications for his position and there will be special meetings.
Adjournment
Council Member Scheid moved to adjourn the meeting, supported by Council Member Cooper.
Ayes: Council Members Cooper, Scheid, Lallo, Jones and Gunderson
Nays: None
The Mayor adjourned the meeting at 7:57 p.m.
| | Ronald Gunderson, Mayor |
| Kareen J. Thomas, City Clerk | |
