REGULAR MINUTES
CITY COUNCIL MEETING
Tuesday, July 6, 2021
Pere Marquette Depot, 100 Depot Street
7:00 p.m.
A meeting of the City Council of the City of Belding, Michigan was convened in open and public session at the Pere Marquette Depot at 7:00 p.m. on Tuesday, July 6, 2021.
Mayor Bruce Meyers called the meeting to order at 7:00 p.m.
The City Clerk, Janae Cooper, took the roll call:
Members Present: Bruce Meyers, Doug Feehan, Jorel Davis, Mike Scheid, and Bonita Steele.
Members Absent: None
Moved by Davis, seconded by Scheid, to approve the Agenda as presented. Feehan requested to add Item A. Breimayer Lot, under Unfinished Business. Motion carried by the following roll call vote: Yes – All.
A. Approve Independent Bank Checks 76366 to 76462 in the amount of $250,923.77
B. Approve Minutes: Regular scheduled meeting, June 15, 2021
C. Board of Review Reappointment – Marjorie Hansen
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN APPOINTING MARJORIE HANSEN TO THE BOARD OF REVIEW.
A regular meeting of the City Council of the City of Belding, County of Ionia, Michigan was held in said City on the 6th day of July, 2021.
The following preamble and resolution were offered by Council Member Feehan and supported by Council Member Steele.
WHEREAS, the current term of office of Marjorie Hansen on the Board of Review expired on 01/01/21; and
WHEREAS, Ms. Hansen has indicated her willingness to serve another term on the Board of Review.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that Marjorie Hansen be appointed to the Board of Review with a term of office to expire on 01/01/22.
This Resolution declared adopted this 6th day of July, 2021.
D. Board of Review Reappointment – Doug Lamborne
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN APPOINTING DOUG LAMBORNE TO THE BOARD OF REVIEW.
A regular meeting of the City Council of the City of Belding, County of Ionia, Michigan was held in said City on the 6th day of July, 2021.
The following preamble and resolution were offered by Council Member Feehan and supported by Council Member Steele.
WHEREAS, the current term of office of Doug Lamborne on the Board of Review expired on 01/01/21; and
WHEREAS, Mr. Lamborne has indicated his willingness to serve another term on the Board of Review.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that Doug Lamborne be appointed to the Board of Review with a term of office to expire on 01/01/22.
This Resolution declared adopted this 6th day of July, 2021.
E. Board of Review Reappointment – Dave Mierendorf
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN APPOINTING DAVE MIERENDORF TO THE BOARD OF REVIEW.
A regular meeting of the City Council of the City of Belding, County of Ionia, Michigan was held in said City on the 6th day of July, 2021.
The following preamble and resolution were offered by Council Member Feehan and supported by Council Member Steele.
WHEREAS, the current term of office of Dave Mierendorf on the Board of Review expired on 01/01/21; and
WHEREAS, Mr. Mierendorf has indicated his willingness to serve another term on the Board of Review.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that Dave Mierendorf be appointed to the Board of Review with a term of office to expire on 01/01/22.
This Resolution declared adopted this 6th day of July, 2021.
Moved by Feehan, supported by Steele, to approve the Consent Agenda as presented. Motion carried by the following roll call vote: Yes – All.
Steele attended a ZBA meeting on June 14th. A fence variance on Hanover Street was approved. The Library Board will meet later this month.
Davis reported that the June Planning Commission meeting was cancelled.
Mayor Meyers attended the Housing Commission meeting on June 17th. Staff and financial reports were given. The revised budget and proposed budget were voted on. The rehab project is almost complete. On June 2nd a reception was held for Judy McDonald who retired from the Housing Commission after 34 years of service.
A. Breimayer Lot - Moved by Feehan, seconded by Scheid to being the Item to the floor. Feehan requested clarification on Rite Aids contract extensions. City Manages John Niemela advised that the City Council voted to extend the study period three times. The contract states that at the conclusion of the study period that Rite Aid has 30 days to close on the property. Rite Aid asked for a two- week extension on the date of the closing. Niemela spoke with the City Attorney and was advised that Rite Aid is essentially in default. They (Rite Aid) have 30 days to correct the default, which is at the end of July. Scheid inquired if this meant that that City cannot move forward with the offer submitted by Bruce Feuerstein. Niemela confirmed that was correct, that it was in black and white in the agreement. Davis inquired if Rite Aid has closed yet and how much are attorneys costing us for all of the extensions, etc. Niemela advised that since they are working through attorney’s he is unaware if the closing has taken place yet, nor does he know the amount of fees incurred.
A. Resolution Approving Installment Purchase Agreement – Fire Truck
Niemela advised that after reviewing the law, the City Attorney’s advised that this is part of the financing to do installment payments with the bank. The note will be for 15 years. The Fire truck is still on schedule as last reported. The chassis is still expected to be delivered as originally planned, the week of August 1st. Moved by Feehan, seconded by Scheid, to approve the Installment Purchase Agreement for the fire truck. Motion carried by the following roll call vote: yes - all. The Resolution is as follows:
CITY OF BELDING
IONIA COUNTY, MICHIGAN
RESOLUTION APPROVING PURCHASE OF FIRE TRUCK AND INSTALLMENT PURCHASE AGREEMENT
At a meeting of the City Council of the City of Belding, County of Ionia, Michigan, held at the Pere Marquette Depot in said City on the 6th day of July, 2021, there were:
The following preamble and resolution were offered by Council Member Feehan and supported by Council Member Scheid:
WHEREAS, the City of Belding (the "City") is authorized by Act 99 of the Michigan Public Acts of 1933, as amended ("Act 99"), to enter into an agreement for the purchase of real or personal property for public purposes, to be paid for in installments over a period of not to exceed fifteen (15) years or the useful life of the property, whichever is less; and
WHEREAS, the City Council of the City (the "Council") has determined that a need exists to purchase the equipment described on Exhibit A attached hereto (collectively, the "Equipment"); and
WHEREAS, the City has taken the necessary steps under applicable law, including any public bidding requirements, to arrange for the acquisition of the Equipment; and
WHEREAS, the Council has determined that it is in the best interest of the City to finance a portion of the costs for the purchase of the Equipment through an installment purchase agreement (the "Agreement"), to be entered into among the City, Spencer Manufacturing, Inc., ("Seller") and Independent Bank (the "Bank"), as assignee of Seller (the "Agreement" or "Installment Purchase Agreement"); and
WHEREAS, the City may advance all or a portion of the costs of the Equipment prior to the execution and delivery of the Agreement, such advance to be repaid without interest from proceeds of the Agreement upon the execution and delivery thereof; and
WHEREAS, all expenditures, if any, to be reimbursed from proceeds of the Agreement are capital expenditures; and
WHEREAS, Treasury Regulation § 1.150-2 (the "Reimbursement Regulations") specifies conditions under which a reimbursement allocation may be treated as an expenditure of proceeds of an obligation, and the City intends by this Resolution to qualify monies advanced by the City to purchase the Equipment for reimbursement from proceeds of the Agreement in accordance with the requirements of the Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Belding:
1. It is hereby determined by the Council to be in the best interest of the City to purchase the Equipment, and the same is hereby approved. It is further determined to be necessary to, and the City shall enter into and deliver as provided herein, (a) the Purchase Agreement between the City and the Seller (the "Purchase Agreement") and (b) the Installment Purchase Agreement, both in substantially the forms on file with the City Manager. The aggregate principal amount of the Agreement shall not exceed $610,000, and shall be paid in annual installments of principal and interest over a period of not to exceed fifteen (15) years. The interest on said Agreement shall be at an interest rate of not to exceed 3.4% per annum from the date funds are disbursed to the City until the principal amount and all interest thereon is paid in full. The City Manager is authorized to negotiate the final terms of the Agreement and to make the final determinations of the aggregate principal amount, interest rate and payment terms for the Agreement, all subject to the requirements set forth in this Resolution. The City shall be responsible for payment of all costs for the Equipment which are not financed through the Agreement, and shall pay for such costs from funds on hand and legally available for such purpose.
2. The Council hereby approves and authorizes the execution and delivery of the Purchase Agreement and the Installment Purchase Agreement in substantially the forms on file with the City Manager, with such appropriate changes, insertions, omissions, substitutions, and other variations as may be necessary or desirable, permitted by law, and not materially adverse to the City as determined by the City Manager.
3. The Mayor and the City Clerk, and each of them, are hereby authorized to enter into, execute and deliver the Agreement and such certificates, instruments, and other documents as may be required by law or may be necessary or convenient to effectuate the issuance, sale and delivery of the Agreement as contemplated herein. In the absence or unavailability for any reason of either the Mayor or the City Clerk, the City Treasurer or the City Manager may execute the Agreement and/or such other certificates, instruments, and other documents in place of either the Mayor or the City Clerk. The City Manager or his designee is hereby authorized to enter into, execute and deliver the Purchase Agreement and such certificates, instruments, and other documents as may be required by law or may be necessary or convenient to effectuate the purchase of the Equipment from the Seller.
4. The City shall annually include in its budget and provide sufficient monies each year from its general fund as a first budget obligation for the payment of its obligations under the Agreement. The Council hereby irrevocably pledges the limited tax, full faith and credit of the City for the timely payment of the Agreement. Such pledge shall include, if necessary, the obligation to levy ad valorem taxes, subject to constitutional, statutory and charter tax rate limitations, on all the taxable property in the City which, taking into account estimated delinquencies in collection, shall be sufficient to fully and timely pay the principal and interest on the Agreement when due.
5. The Council hereby determines that the Equipment will be used for public purposes and will have a useful life extending beyond twenty (20) years.
6. Prior to the execution and delivery of the Agreement, the City may expend monies on hand for all or a portion of the costs of the Equipment. Pursuant to the requirements set forth in the Reimbursement Regulations, the City hereby declares its official intent to enter into the Agreement to finance the costs of the Equipment and to reimburse from proceeds of the Agreement, without interest, the City's advances to acquire the Equipment as anticipated by this Resolution.
7. 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 payments due under the Agreement from adjusted gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the "Code"), including but not limited to actions related to the rebate of arbitrage earnings to the federal government if such rebate is required by the Code.
8. The Council hereby determines that the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City (and all issuers aggregated with the City pursuant to Section 148(f)(4)(D)(ii) of the Code) during the 2021 calendar year is not reasonably expected to exceed $10,000,000.
9. The Agreement is hereby designated as a "qualified tax‑exempt obligation" for purposes of deduction of interest expenses by certain financial institutions under Section 265(b)(3)(B) of the Code.
10. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be, and the same hereby are, rescinded.
ADOPTED this 6th day of July, 2021.
B. Ordinance (Regulatory) to Permit a Marihuana Grow Operation – 2nd read
Moved by Steele, seconded by Davis to approve the Ordinance (Regulatory) to Permit a Marihuana Grow Operation. Motion carried 4-1 by the following roll call vote:
YEAS: Council Members Steele, Davis, Scheid and Meyers
NAYS: Council Member Feehan
The Ordinance is as follows:
CITY OF BELDING
IONIA COUNTY, MICHIGAN
AN ORDINANCE TO AMEND CHAPTER 58, ARTICLE IX, SECTION 58-179 OF THE CITY OF BELDING CODE OF ORDINANCES TO ALLOW EIGHT ADDITIONAL ADULT-USE MARIHUANA GROWER LICENSES IN THE CITY OF BELDING
THE CITY OF BELDING ORDAINS:
Section 1. Addition of Section 58-179(c)(i)
Chapter 58, Article IX, Section 58-179(c)(i) of the Code of Ordinances is hereby added. Such section shall read as follows:
(c)(i) Sections 58-179(a)(b) and (c) above notwithstanding, eight additional adult-use marihuana grower licenses for not more than 2000 plants for each license shall be permitted, subject to continued compliance with the Michigan Regulation and Taxation of Marihuana Act and upon payment of an annual fee of $5,000 for each grower license, at the location described as follows:
THAT PART OF THE NORTHEAST 1/4 OF SECTION 11, TOWN 8 NORTH, RANGE 8 WEST DESCRIBED AS, BEGINNING AT A POINT ON THE NORTH LINE OF MERRICK ST. SAID POINT BEING NORTH 00 DEG 02' 49" EAST, 1354.13 FEET AND WEST 969.00 FEET FROM THE EAST 1/4 CORNER OF SECTION 11; THENCE WEST, 252.00 FEET TO THE EAST LINE OF THE BELDING LAND AND IMPROVEMENT COMPANY'S ADDITION TO THE CITY OF BELDING; THENCE ALONG SAID EAST LINE NORTH 00 DEG 12' 40" EAST, 462.00 FEET; THENCE EAST 252.00 FEET; THENCE SOUTH 00 DEG 12' 40" WEST, 462.00 FEET TO THE POINT OF BEGINNING, AND ALSO LOTS 132, 133, 134, 165, 166, 167, 168, 169 and 170 OF THE BELDING LAND AND IMPROVEMENT COMPANY'S ADDITION TO THE CITY OF BELDING, AND ALSO THAT PART OF VACATED HOWARD ST. BOUNDED ON THE WEST BY A LINE RUNNING FROM THE SOUTHWEST CORNER OF LOT 134 TO THE NORTHWEST CORNER OF LOT 165 AND ON THE EAST BY A LINE RUNNING FROM THE SOUTHEAST CORNER OF LOT 132 TO THE NORTHEAST CORNER OF LOT 167 ALL IN SAID PLAT, BELDING, IONIA COUNTY, MICHIGAN. (701 Reed Street).
Section 2. Effective Date.
This ordinance shall become effective 10 days after publication in a newspaper of general circulation in the City of Belding.
ORDINANCE DECLARED ADOPTED.
Sam Mason, 516 West May Street, commented on Rite Aid purchasing the Breimayer lot and commented on the status of the lagoons due to all of the rain that we have recently received.
City Manager John Niemela recognized the passing of former Mayor and City Council Member Willard Young. He served from 1968 through 1975 and again 1981 through 1990. Niemela cited the visitation hours and time of the funeral.
Niemela advised Council Members of the MML Annual Conference in September.
Dial-A-Ride has been temporarily relocated to City Hall. RFP’s have been requested however no response was received. Niemela has contacted MDOT to either rebid or to split the bid; one bid for the roof and chimney work and a second bid for the wall repair. The walls must be plastered as the Depot is a historical building. He has asked the DPW if they can do a temporary fix to the water problems around the chimney. The chimney has been approved to be taken down as it is a major cause of the water problems.
Holly Noble wants to do an event in the park in August. A street closure will be requested at the next meeting.
Niemela then requested permission to address Sam Mason’s comments that he posed during Public Comment. Mayor Meyers approved. Niemela commented on the Rite Aid deal and the lagoons. Scheid commented on dealing with Rite Aid. Davis commented on the sludge in the lagoons and inquired about receiving EGLEs original report. Niemela shared that the City encouraged the visit from EGLE. They performed an oxide test which prompted what we are dealing with currently. Davis inquired about the Redevelopment Ready Community program. Niemela is getting back up to speed on this. Two levels to this program have been created; one more comprehensive than the other.
Niemela will have the attorney billing to the council members tomorrow.
Niemela attended a capital asset management training which turned out to be very generic.
Steele commented on the City Council meeting being back at the Depot again.
Feehan commented on Code Enforcement. Feehan also questioned if there is a list or schedule to start replacing the lead pipes. Niemela advised that the city is trying to do what is least costly to do the lead pipe replacement. He is looking at grants/programs. President Biden is talking about doing an infrastructure bill which would allot enough money to replace lead pipes in the whole country. The replacement cost is estimated at $5000 per line and it cannot be billed to the customer directly—we would have to add it to the water bill, increasing it by 5% for 20 years.
Scheid commented on the meetings that he has missed.
Davis inquired about the availability of SAW Grants to the city for reimbursement. Niemela noted that would not be typical. Davis also commented on being back at the Depot.
Mayor Meyers inquired as to how the city is determining which water lines to replace first. Niemela advised that they are first responding to residents who have issues with water service, and eventually they will do neighborhoods or blocks. Mayor Meyers commented on needing to have an updated picture taken of the City Councilmembers. He also commented on the Briemayer lot and that if it is not purchased by Rite Aid that we need to look at what is best for the City to be on that lot. A second proposal has been submitted however we do not have the funds to support the parks that we currently have, nor is it the best place to have a splash pad. Furthermore, a splash pad would not be a revenue maker. The DDA should recommend what should be put on the lot. In the past they wanted a revenue maker. Mayor Meyers also commented on returning to the Depot for meetings.
Moved by Scheid, supported by Feehan to adjourn the meeting at 7:49 p.m. Motion carried by the following roll call vote: Yes – All
_____________________________ ____________________________
Bruce Meyers, Mayor Janae Cooper, City Clerk