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The following minutes are draft minutes that have not been approved by the Litchfield City Council

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REGULAR MEETING
Litchfield City Council - City Council Room
June 8^th, 2010 - 6:30 PM

Mayor Smith called the meeting to order at 6:30 PM.

Treasurers Update. Treasurer Adams said we are getting ready for the close of the Fiscal Year, and we just about have all the personal property taxes collected from last year. The most important thing she has is the budget amendments that are on the agenda tonight. When we get a governmental grant such as the Streetscape Project, we have to show that the money comes in and goes out, even though the money hasn’t come here, but we benefit from it.

Consent Agenda. Councilman Phelps moved to accept the Consent Agenda as presented and place on file, supported by Councilman Siebert. Motion carried.

Resolution 2010-09. Councilman Bannick moved to adopt Resolution 2010-09, to Amend the 2009-2010 Litchfield City Budget, supported by Councilman Smith. Motion carried.

Resolution 2010-10. Treasurer Adams said this is required by our investment policy to state which institutions she is allowed to invest in. Councilman Siebert moved to adopt Resolution 2010-10, Establishing Authorized Financial Dealers and Institutions, supported by Councilman Smith. Motion carried.

Sweet Corn Days Fireworks. City Manager Terry said in our last DDA meeting, they requested that some research be done on the possibility of doing fireworks in coordination with Sweet Corn Days. He called our insurance carrier, and the cost of an additional rider is between $700 and $1,000. They also have the stipulation that any company that we choose would also indemnify us through their insurance policy. The question before you tonight is would the Council be in favor of exploring the possibility of fireworks if funds were garnered through private donations? Councilman Chapman thinks you will draw in more people with fireworks, which will help out the festival. Manager Terry said that is if we can get some private donations. Councilwoman Thomas asked if we have an estimate of what the fireworks will cost? Manager Terry said it will depend on the amount of donations. What was requested of me was to ask if Council would consider paying the additional premium for this, and then we would solicit donations. Whatever we received would be our fireworks budget. Councilman Phelps asked if that would be the budget for the fireworks themselves, would be paying the insurance, and do we have any kind of money to spend on that? Manager Terry said it certainly wasn’t budgeted, but what we budget and actually spend is less, and we have some surplus. We could solicit monies for the insurance if you would like. Councilman Phelps asked if you have any idea how much money you can get? Manager Terry said no, but a halfway decent fireworks display costs about $10,000. Councilman Siebert said all we are worried about is the $700 to $1,000 for the insurance? Manager Terry said your acknowledgement is also permission to look into the possibility of fireworks. Councilman Bannick asked if you would set them off up at the school? Manager Terry said what he would do, depending upon donations, is solicit quotations form 3 or 4 qualified and certified pyro-technicians, and he would then have them meet with the Fire Department to look for the safest place to launch the fireworks. Consensus of Council was to allow the City Manager to pursue donations for fireworks for Sweet Corn Days.

Bills for Approval. Councilman Bannick moved to approve the Bills in the amount of $22,874.42, and charge them to the proper accounts, supported by Councilman Smith. Motion carried.

Police Report. Councilman Bannick moved to accept the Police Report and place it on file, supported by Councilman Chapman. Motion carried.

Public Works Report. Manager Terry said we have been keeping our eye on the dam at Firemen’s Park, as there is some slight undermining. We have not been immune to the Emerald Ash Borer. There are a number of ash trees throughout the City, and we have worked with Consumers Energy on taking down some limbs. It would cost us a tremendous amount of money to bring in a professional to take them all down. What we will probably end up doing is bring in a professional to cut down some of the major limbs, and then we will cut the trees down. We will use some of the fire wood, and have some for other people to use. Curbside pick up is scheduled for June 12^th and it is a big event in our community. Clerk Sprague does a great job of going out with the Police Department and inspecting the town prior to the pick up date. He then lets the residents know if they have any zoning violations, now is the time to take advantage of the service that we provide, and it has been very successful. Everything is running smooth, and we have been cutting a lot of grass. Councilwoman Thomas asked if we had any idea when Wolfinger’s Tin Shop is coming down? Manager Terry said a structural engineer came and looked at it today, and Harold Wolfinger has been in contact with several contractors. Councilman Bannick said one of the residents who were forced to mow their property asked why we aren’t enforcing behind Harvard and Thriftway. Councilman Phelps said it is unimproved property. Manager Terry said with residential property we want it mowed. We have a stack of letters that the City Clerk has written to have them mowed. Clerk Sprague said we have a number of foreclosed properties where we have the lot mowed and we send them a bill. Manager Terry said if the bill is not paid, we put it on the property taxes. Councilman Siebert moved to accept the Public Works Report and place it on file, supported by Councilman Chapman. Motion carried.

City Manager’s Report. Manager Terry said we opened up the pool, and that is operating just fine. We sent out letters requesting donations for the pool, and we received a check for $3,000 from Jesco Industries, and we are grateful for their generosity and support. It seems lately we have had a lot of peace keeping with neighbors, and a lot of zoning issues. Also we have had some new development issues, which is a good thing.

Committee Report. Councilman Siebert said the Recreation Committee is going to have a raffle, and Sue Ballinger has received quite a few donations. We will do the drawings at Sweet Corn Days, and the proceeds will go towards the pool and stage for Firemen’s Park. Manager Terry said we are bringing Sweet Corn Days back downtown this year.

Councilpersons Concerns. Councilwoman Thomas said they had problems with water at the Historical Society building, and Tony Langhann was good enough to come down on Saturday to fix it.

Councilman Bannick moved to adjourn, supported by Councilman Smith. Motion carried. Meeting adjourned at 6:59 PM.

Roger D. Sprague, CMC
City Clerk

APPROVED MINUTES

REGULAR MEETING
Litchfield City Council - City Council Room
May 11^th, 2010 - 6:30 PM

Mayor Smith called the meeting to order at 6:30 PM.

Consent Agenda. Councilman Siebert moved to approve the Consent Agenda as presented, supported by Councilman Smith. Motion carried.

Public Hearing on 2010-2011 Budget was opened at 6:32 PM. Councilman Bannick said since Republic didn’t raise their rates, why do we need to raise the Solid Waste fees 5%? City Manager Terry said Solid Waste does not just include Republic Waste’s fees. It also includes our brush and leaf pick up, and it has cost us considerable monies. Treasurer Adams said from a financial standpoint, we have put it into its own fund so the fees can support the cost of the services. Without a 5% increase, General Fund would have to contribute to the cost, so the fees are not covering the services provided. The Public Hearing was closed at 6:35 PM.

Resolution 2010-06. Councilman Phelps moved to adopt Resolution 2010-06, City of Litchfield Budget Adoption Resolution and Appropriations Act for Fiscal Year 2010-2011, supported by Councilwoman Thomas. Motion carried.

Resolution 2010-07. Manager Terry said this is required for Council to adopt for the annual tax levy. The millage rate is staying the same at 13 mills. Treasurer Adams said it is necessary to state what your levy is going to be every year, and this is what is included in our budget. Councilman Bannick moved to adopt Resolution 2010-07, To Establish 2010 Tax Levy for the City of Litchfield, supported by Councilman Chapman. Motion carried.

Resolution 2010-08. Manager Terry said we have to adopt a resolution establishing the water, sewer and solid waste rates that were in the budget. Councilman Siebert moved to adopt 2010-08, A Resolution to Establish Water and Sewer Rates and Solid Waste Fees, supported by Councilman Smith. Motion carried.

Clerk Sprague read the second reading of Ordinance 2010-01. Manager Terry said at the last meeting we talked about the revision of Section 1620.08 which included the wording that any person who is overseeing a fire or open burning, or operating in a dangerous manner, can be ordered to discontinue by a qualified professional. This is the only inclusion in the wording, and this ordinance has been effect since 1957. Councilman Siebert said he still does not like the word hazardous included. It could be interpreted differently by another Council or Manager in the future. Councilman Bannick moved to adopt Ordinance 2010-01, An Ordinance to Amend Chapter 1620 of the Codified Ordinances of the City of Litchfield, supported by Councilman Smith. Motion carried with nay vote from Councilman Siebert.

Clerk Sprague read the second reading of Ordinance 2010-02. Manager Terry said this Ordinance is required by the City Charter. Councilman Siebert moved to adopt Ordinance 2010-02, An Ordinance Confirming and Establishing Salaries for Certain Appointed Officials of the City of Litchfield, supported by Councilman Smith. Motion carried.

Pool Door Bid Amendment. Manager Terry said the frames were inadvertently omitted from the original bid. Treasurer Adams said it is still the low bid with the frames included by $300.00. Councilman Phelps moved to amend last months pool door and increase the amount not to exceed $1,000.00 for the door frames, supported by Councilwoman Thomas. Motion carried.

Future Fence Proposal. Manager Terry said we were dealing with an engineering firm that MDOT had hired to do our Streetscape design. Mayor Smith said in the original plan, we were only going to replace the sidewalk down to Charles Phelps building. Manager Terry said they decided to replace the curb and gutter down to the Methodist Church, and we couldn’t match the new curb to the existing sidewalk, so that sidewalk was replaced. Sherry Iles asked if the railing was going to be replaced in her building, as the sidewalk and the curb was replaced done? We received quotes, but for some reason, it never got put into the plan. Future Fence did the other railings around in the downtown, and there are three ways we can do this. One is to have them install it, the second is for them to deliver it, and we install it. The third is for us to pick up the material and install it, and that is what we are seeking tonight. That is the most cost effective way of doing this. This property owner was left out of the design process, and it should be remedied. Councilman Smith moved to authorize the City Manager to purchase the ornamental railing from Future Fence in an amount not to exceed $1,660.00, supported by Councilman Bannick. Motion carried.

Councilman Bannick moved to reappoint Randy Hawkes and Doug Stewart to the Planning Commission, supported by Councilman Smith. Motion carried.

Bills for Approval. Councilman Bannick moved to pay the Bills in the amount of $43,288.01 and charge them to the proper accounts, supported by Councilman Siebert. Motion carried.

Police Report. Councilman Bannick moved to accept the Police Report and place it on file, supported by Councilman Smith. Motion carried.

Public Works Report. Manager Terry said DPW has been getting the pool ready and looking at parking issues downtown. We are looking at ways of painting yellow lines on the road, so we won’t have to paint the curbs. Councilman Siebert moved to accept the Public Works Report and place it on file, supported by Councilman Chapman. Motion carried.

Treasurer’s Report. Treasurer Adams said we only have two personal property tax bills left to pay for 2009. We were very successful with our used equipment sale and brought in about $7,500.00. We are reviewing our hardware and software for our networking, so we are trying to find the most cost effective way of setting ourselves up for the future.

City Managers Report. Manager Terry asked Council to drive by the water tower. Our Fire Department took out their new ladder truck, and used it to rinse off a lot of the mold and slime. The City is real appreciative of the Fire Department for helping us.

Many of our large trees have become victim of the Emerald Ash Borer, especially near Firemen’s Park, and they need to be removed. We are going to be looking at removal of those trees by volunteers, as there was no money budgeted. If we don’t remove them, they will become dangerous.

The Mayor and I were invited to attend the Michigan Economic Development Commission (MEDC) meeting in Lansing, as part of Tenneco’s expansion. It shows that Litchfield is on the radar screen of the MEDC and the State of Michigan and we should be proud of the work that TIFA and the Council has done.

Councilman Siebert was concerned about the fence on Garfield Street. Councilman Bannick said the surveys done on that block are not matching up, and the City Manager is right in holding off until they found out what survey was correct. Councilman Siebert said he understood that only one survey was done. Manager Terry said there was one recent survey, and one was done a few years ago, and they do not match. Until we receive more information, he will not issue a permit.

Committee Reports: Councilman Siebert said we had a good Recreation meeting, and we are going to try and look at ways to raise money to help offset the pool funds. Unfortunately, there were not enough participants for the summer ball program this year.

Councilman Bannick moved to adjourn, supported by Councilman Smith. Motion carried. Meeting adjourned at 7:39 PM.

Roger D. Sprague, CMC
City Clerk

REGULAR MEETING
Litchfield City Council - City Council Room
April 13^th, 2010 - 6:30 PM

Mayor Smith called the meeting to order at 6:30 PM.

Roll Call: Present – Mayor Edwin Smith, Councilpersons Don Bannick, Greg Chapman, Brenda Thomas, Charles Phelps, O R Smith, Rick Siebert
               Absent – None
      Also Present – City Manager Doug Terry, Clerk Roger Sprague, Treasurer Jill Adams, Police Chief John Michelin, DPW Supervisor
                              Tony Langhann, Terry Vear, Russ Martin, Mike Marten, Bob Weyer, Doug Calhoun, Cassindra Burt

Consent Agenda. Councilman Phelps moved to accept the Consent Agenda as presented, supported by Councilman Siebert. Motion carried.

Mayor Smith opened the Public Hearing for an IFT for Tenneco at 6:31 PM. Doug Calhoun, the Maintenance Facilities Manager from Tenneco introduced Mike Marten – Plant Manager, Bob Weyer – Plant Controller and Cassindra Burt – Auditor. As there were not comments, the Public Hearing was closed at 6:33 PM.

Councilman Bannick moved to adopt Resolution 2010-04, Industrial Facilities Tax Exemption for Tenneco, Inc., supported by Councilman Chapman. Motion carried. City Manager Doug Terry asked Mr. Marten how many jobs currently exist at Tenneco? Mr. Marten said currently we have 420 associates working at Tenneco. City Manager Terry said with the improvements and expansion, it is our understanding that you will be creating 40 to 70 more positions? Mr. Marten said at January 1^st of this year we had 399 associates, and by the end of this year, when the expansions and hiring is done, we should be close to 480 associates.

The Public Hearing for a P.A. 328 Exemption of personal property for Tenneco, Inc. was opened at 6:35 PM. As there was no public input, the Public Hearing was closed at 6:36 PM.

Councilman Bannick moved to adopt Resolution 2010-05, To Approve a New Personal Property Exemption Application for Tenneco, Inc., supported by Councilwoman Thomas. Motion carried. Mr. Marten said he would like to thank the Council for their current and continued support.

Terry Vear is the Executive Director for the Hillsdale County Senior Services Center and she gave an update on the projects and programs they are working on.

Clerk Sprague read the first reading of Ordinance 2010-01, An Ordinance to Amend Chapter 1620 of the Codified Ordinances of the City of Litchfield. City Manager Terry said in your packets is proposed wording for an amendment to our Ordinances. This came because of a complaint received last year of someone being irresponsible in burning their leaves. It prompted this Council to direct the Planning Commission to study this portion of the Ordinance. We had some people who did not want to see any burning whatsoever, and some didn’t want any changes to the Ordinance. A compromise was struck that any officer of the City that witnesses somebody burning in a reckless manner can immediately inform that property owner to quit burning. He thanked Clerk Sprague for coming up with the draft language, and this is the Planning Commission’s endorsement. Councilwoman Thomas said we can still burn leaves, and have fires, but if their neighbors are burning leaves and filling up my house with smoke, is that considered unsafe? City Manager Terry no, what he is worried about is your house catching on fire. Hopefully no one will burn wet leaves that will smolder and fill up your house with smoke. We would ask that people be respectful of their neighbors, and sometimes that is not the case. Councilwoman Thomas wanted to know what hazardous and unsafe meant? City Clerk Sprague said he thought hazardous would be the burning of tires, carpet and garbage. City Manager Terry said if it was so deemed toxic that it was injurious to someone’s health, we would use common sense and ask people to think about their neighbors. Clerk Sprague said unsafe would be unsupervised or totally out of control. Mayor Smith said even smoke would be hazardous if someone had their leaf pile smoldering for days. City Manager Terry said the majority of people are pretty reasonable. Councilman Siebert said smoke is hazardous, so if that word is used, there should be no leaf burning. Why don’t we put no leaf burning in the ordinance? We have the equipment to pick them up, and that is the biggest problem we have. He would still like to allow camp fires. Councilwoman Thomas asked Councilman Chapman about his definition of hazardous, as he is on the Fire Department? Councilman Chapman said there is no good smoke out there. It puts particles in the air that you shouldn’t be breathing. He doesn’t think there should be any leaf burning. We have thousands of dollars worth of equipment to pick them up. City Manager Terry said the Planning Commission was to come up with an Ordinance that found balance, and that very item was discussed, but there never was a consensus of the Planning Commission members on the prohibition of leaf burning. It was noted that there are several large lots where it would be difficult to bring the leaves to the road. He agrees that smoke is hazardous, but this is what the Planning Commission came up with. Councilman Siebert said the EPA website said leaf burning leads to air pollution, health problems and fire hazards. He went to several websites that said the same things. Councilwoman Thomas asked how many leaf complaints do we get in a year? City Manager Terry said probably around four. The numbers are minor, but the complaints are not. Councilman Smith said this is a good compromise. Mayor Smith said perhaps we could add that leaves that are raked to the road cannot be burned. That is absolutely unnecessary, and there is no need to burn. If we added that, we would be pretty well covered. Councilman Siebert said he has a three acre lot and he would be glad to take his leaves to the road. Councilmen Smith and Phelps like the wording just the way it is. Mayor Smith said if they get the leaves to the road, they don’t need to burn them. Clerk Sprague said it reads 15 feet from any adjacent property. That would include the right of way out front, so they shouldn’t be burning there. Consensus of Council was to leave the wording as is.

Budget Presentation. City Manager Terry said you have the proposed 2010-2011 budget, and hopefully you have all had a chance to review it. You will see it is a balanced budget, and was prepared as a group effort by the Department Heads. There are some things you need to know that are significant. We are recommending a 5% increase in water/sewer/solid waste rates. We are planning on replacing some of our aging infrastructure, and we need to have adequate funds. Councilman Phelps said this is a great budget.

Set Date for Budget Public Hearing. Councilman Phelps moved to set the Budget Public Hearing for the next Regular Council Meeting, which is May 11^th, supported by Councilwoman Thomas. Motion carried.

Clerk Sprague read the first reading of Ordinance 2010-02, An Ordinance Confirming and Establishing Salaries for Certain Appointed Officials of the City of Litchfield. City Manager Terry said this is an ordinance that is required by the City Charter.

Pool Rates and Hours of Operation. City Manager Terry said you have the proposed list of hours and rates for the Litchfield Public Pool. What we have here are reduced hours from last year. Monday through Thursday – 3:00 to 8:00 PM. Friday and Saturday – 1:00 PM to 9:00 PM and Sunday 1:00 PM to 8:00 PM. We had one concern by a Recreation Board member that all the hours should be the same. What we tried to do was strategically place the hours where we would get the most customers. The rates are the same as last year, although we had some suggestions to charge more for non-City residents. Councilwoman Thomas said then they won’t come. City Manager Terry said he doesn’t want any child left out because of the cost. Councilman Bannick asked about a morning session for senior citizens. City Manager Terry said we tried that last year and it was not received very well. Councilman Bannick is concerned about being open from Memorial Day until weather or staffing no longer allows. That sure leaves it wide open on the closing. City Manager Terry said he has to have certified life guards, and they have college and sports, and a lot of colleges start before Labor Day. Last year we kept the pool open past Labor Day. Also our Pool Manager is a teacher, and she has requirements she has to complete before school starts. Treasurer Adams said when people ask that question, we tell them around Labor Day. Councilman Smith moved to adopt the 2010 Pool Fee and Schedule, supported by Councilwoman Thomas. Motion carried. Mayor Smith said we need to keep track of the attendance later in the day to see how long we need to be open. City Manager Terry said we have a Recreation Board meeting coming up, and the hours of operation will come up under discussion, and they could change. Councilwoman Thomas asked how can they change after we have already approved them? City Manager Terry asked if he interpret this as a tentative schedule with some fine tuning? Councilman Siebert said the question was why the hours aren’t the same, so people will always know when the pool is open. Councilman Bannick said post the hours in the Homer Index. City Manager Terry said we can leave them permanent for now, and if there are any desired changes, he will bring them back to Council. Councilwoman Thomas asked if the hours can be put on the web site? Clerk Sprague said he will put the hours on the web site, and they can be put on the TV as space permits. Councilman Smith moved to amend the previous motion to adopt the pool fees and a tentative schedule, supported by Councilwoman Thomas. Motion carried. Now the Recreation has some flexibility in setting the hours.

Pool Door Replacement. City Manager Terry said you have some photos of the pool doors. We replaced the front doors last year, and we would like to replace the rear doors this year. Councilman Bannick moved to authorize Hillsdale Glass and Door to replace three pool doors in the amount of $3,000.00, supported by Councilman Smith. Motion carried.

Senior Citizen Services Contract. This contract is for $650.00 for our local senior citizens. Councilman Phelps moved to authorize the Mayor to sign the contract with the senior citizens of Litchfield in the amount of $650.00, supported by Councilman Siebert. Motion carried.

Manhole Rehabilitation. City Manager Terry said you have a memo from my office along with a proposal from Advanced Rehabilitation Technology. We have approximately eight manholes that need work to prevent further deterioration. This type of repair is much cheaper than replacing those manholes. This project is part of our infrastructure improvement program. Councilman Phelps moved to allow Advanced Rehabilitation Technology to rehabilitate eight manholes for a cost not to exceed $25,000.00, supported by Councilman Chapman. Motion carried.

Disposal of Surplus Equipment. City Manger Terry said he needs permission from Council to dispose of surplus equipment. Councilman Bannick moved to authorize the City Manager to sell the surplus equipment as listed through public bid, supported by Councilman Smith. Motion carried. Mayor Smith asked if the items would be put on the Internet? City Manager Terry said we will sit down as a team and decide how to advertise.

North Chicago Street Lift Station. City Manager Terry said we have received a proposal from Dubois Cooper, who we have used in the past. This proposal is for the purchase of one (1) Gorman-Rupp Lift Station. Because of the OSHA requirement of confined space entry, we have decided to go with above ground suction lift. Gorman-Rupp is one of the best pumps for this type of application. These pumps work better with three phase power, and there is none available at this site. We received an estimate of $50,000.00 from Consumers Energy to run the three phase power to the site. There is a converter included where we would not need the three phase extended. This lift station is failing at least once a week, and when they fail, we are exposing ourselves to sewer back ups. It takes 10 to 12 weeks for delivery, and we have to bid out the installation. Because of the lengthy build time, we are seeking approval to order this and move forward. Councilman Phelps moved to authorize for the Mayor to sign and purchase a Gorman-Rupp Lift Station for an amount not to exceed $72,000.00, supported by Councilman Smith. Roll Call Vote: Councilpersons Chapman – Yea, Siebert – Yea, Phelps – Yea, Thomas – Yea, Smith – Yea, Bannick – Yea, Mayor Smith – Yea. Motion carried with 7 yeas, 0 nays and 0 absent.

Correspondence. Councilman Siebert was concerned about the letter sent to a resident addressing some of his concerns. Item 6 said "While we do not excuse or condone this practice, it is often difficult for City officials to enforce the City codes after the fact." We have had people take down fences that were not up to code in the past. City Manager Terry said a lot of times people will do things without checking with us or realizing they need a permit. When we can catch things and correct them, we will. We do try to correct these things. There was a decorative fence put up on two corners that was not in compliance. It was done after the fact, and there is concrete and iron involved. We have to weigh in on how bad we want it to stay or take them to court. If it is impeding vision or causing a nuisance, immediate and swift action would have to take place. This situation is still being looked into. Councilman Bannick said there is now about a 4 inch lift that was not there before, and the fence was put up so someone would not fall off that lift. Manager Terry said it was never addressed to the City Administration, and it should have been.

Bills for Approval. Councilman Bannick moved to approve the bills in the amount of $45,340.17, supported by Councilman Smith. Motion carried.

Police Report. Councilman Phelps moved to approve the Police Report and place it on file, supported by Councilman Siebert. Motion carried.

Public Works Report. Councilman Phelps moved to approve the Public Works Report and place it on file, supported by Councilman Siebert. Motion carried.

Treasurers Update. Treasurer Adams said she has been working on the Budget and has nothing else to add.

City Manager’s Update. City Manager Terry said he has nothing more to add.

Committee Reports. Councilman Siebert said the Parks and Recreation Committee has been talking about doing some sort of raffles to help out with the pool expenses.

Councilman Bannick moved to adjourn, supported by Councilman Smith. Motion carried. Meeting adjourned at 7:58 PM.

Roger D. Sprague, CMC
City Clerk

REGULAR MEETING
Litchfield City Council - City Council Room
March 9^th, 2010 - 6:30 PM

Mayor Smith called the meeting to order at 6:31 PM.

Roll Call: Present – Mayor Ed Smith, Councilpersons Don Bannick, Greg Chapman, Brenda Thomas, O R Smith, Rick Siebert

Absent – Councilman Charles Phelps

Also Present – City Manager Doug Terry, Deputy Clerk Susan Ballinger, Treasurer Jill Adams, Police Chief John Michelin, DPW Supervisor Tony Langhann, Terry Miller, Russ Martin, Brett Smith.

Consent Agenda. Councilman Rick Siebert questioned the Planning Commission minutes stating there is some wording to be corrected as far as who the city manager is. Councilwoman Brenda Thomas asked about Metaldyne’s overpayment on taxes. Treasurer Adams stated that the city did a jeopardy assessment on their personal property taxes that required estimating. This caused an overpayment so they were due a refund. Councilman Bannick motioned to accept the consent agenda except the planning commission minutes, seconded by Councilman Chapman. Motion Carried.

Councilman Siebert motioned that the Planning Commission minutes be approved with the correction of the City Manager’s name, seconded by Councilman Bannick. Motion Approved.

Resolution 2010-02, Property Tax Abatement Fees. Councilman Smith asked why we are doing this. Manager Terry stated that the State of Michigan broaden what tax abatements that are out there and this Resolution allows us to charge a fee for all abatements. Councilman Bannick moved to approve Resolution 2010-02, seconded by Councilman Chapman. Motion Carried

Resolution 2010-03, MERS Health Care Savings Program (HCSP) Adoption. Manager Terry stated that this is a mandatory resolution for the installation for a savings account to be used to help with retirement. This allows current employees to save for post employment health care. The good point about this is it allows us to give incentive for employees to be able to retire. Treasurer Adams stated this is unique to MERS. It allows employees to do tax free contribution and withdrawals for health care, but what is unique about this program is the employee cannot use the funds until they leave the service of the city. It helps the people who want to retire. This program has no limit to what can be contributed. Employees can increase contributions but never decrease their contribution. The city has set up an incentive to use this program by matching fifty cents to every dollar the employee contributes up to $500.00 per employee/year. There is a vesting period of six years before the city will match any contribution. Our maximum liability will be $4000.00 a year if every full time employee is vested. In order to have a tax free contribution the program requires employees have a mandatory contribution. The city has made that a minimum of $5.00 per month. If all employees contribute the minimum our liability would be about $480.00 a year. Councilwoman Thomas asked if we match any contributions in any other retirement plans. Treasurer Adams stated the city has a pension program where the employee contributes 5% and we do have the 401 for the city manager and council if they choose to use it. If the manager/council chooses the 401 the city will match up to 7%, but currently our manager contributes to the pension program. The city primarily funds the pension program and that varies from year to year depending on what the cities liability is and we’re working on becoming a 100% funded. Currently we’re contributing 20% which is more than what is required so we can obtain becoming 100% funded. Councilwoman Thomas asked can the city afford to contribute to both in these economic times. Manger Terry stated yes and no, not everybody will participate in this program. The reason we looked into this is because it was difficult for people to look into retiring because of post retirement healthcare. The city wants to able to offer employees an early buyout and we wanted to put the city in a position that gave council or future managers the capability to offer somebody an early retirement. This will help get the city down to the proper revenue levels. The city has been able to retire some people and because of that we will be able to achieve a balanced budget. Everything the city is doing is for the future not so much current. Councilwoman Thomas asked what our cost savings would be for a year on health insurance if someone was to retire. Treasurer Adams stated a savings for a year if someone with a family was removed from our health insurance would be about 13,000.00 a year. Councilmen Siebert moved to accept Resolution 2010-03 MERS (HCSP), seconded by Councilman Chapman. Motion Carried.

Adopt MERS HCSP Participation Agreement. City Manager stated that this is the actual agreement between the City of Litchfield and the Municipal Employees Retirement System. Councilman Bannick asked if the fifty cent contribution the city is matching a set amount or can that be changed. Manager Terry stated that he is the one that proposed the fifty cents match to make it an incentive for employees to want to contribute. Councilman Bannick asked isn’t that the same as giving a raise. Manager Terry stated that the employee doesn’t see the benefit of this until he/she retires. Councilwoman Thomas asked if it is mandatory for employees to roll over their vacation and sick time into the account. Manager Terry stated that is a choice for the employee to make when they leave the employment of the city. Councilman Siebert moved to adopt the MERS HCSP Participation Agreement, seconded by Councilman Chapman. Motion Carried

Personnel Policy. Manager Terry stated to council that this policy went in front of and was reviewed by the personnel committee. This has not been revised since Dean Edwards was the city manager and this policy needed to be updated. Councilman Smith questioned the sick time leave for grandparents and grandchildren. Manager Terry stated the city took language from other policies. We’re seeing more grandparents taking the role of raising grandchildren. Councilwoman Thomas asked about the employee vacation pay whether the city withholds enough pay to cover ourselves. Treasurer Adams stated that the city does not allow employees to take vacation that is not earned. Councilman Bannick questioned the vacation leave states that an employee receives nine days after one year. Isn’t it customary to give seven days after one year? Treasurer Adams stated that the city eliminated certain holidays and transformed them into vacation days due to the fact that council was concerned that the office was not opened to the public. So by transferring from a holiday to a vacation day the city office is now open to the public on those certain holidays. Councilman Bannick stated then the city didn’t gain anything by switching the days. Chief Michelin stated you did save money because you’re no longer paying holiday pay for those holidays to the police department while they are working. Councilwoman Thomas asked what is the percentage that the employee pays for their health insurance. Treasurer Adams stated that the employees contribute$100 to their deductible right now a $100 and none towards the premiums. Manager Terry stated that we switched to Priority Insurance a few years ago and saved the city a lot of money, but there was more burden put on the employee to take on more responsibility of their cost. Councilwoman Thomas stated that she doesn’t agree with it and doesn’t agree with paying employees that are not covered by the city‘s health insurance (buyout program). I think employees’ not paying anything toward premiums is archaic. Councilman Smith stated that the employee will go on their spouse’s plan and remove themself from the city plan. Treasurer Adams added that the city had employees with duel coverage where their spouse’s employer offered a buyout of some kind. If it were more enticing than ours then the employee would stay on our insurance plan and use the buyout of their spouses plan. So the city tried to make the buyout as attractive as possible. At this time we do not have any employees on the buyout plan. Councilman Siebert asked to add no smoking in city vehicles to the policy. I believe we already agreed with that. Manager Terry stated we can add that and it would be amended due to the new State of Michigan no smoking policy that takes effect on May 1^st. Councilwoman Thomas questioned if the employees’ have to turn in their pay if they get called for jury duty. Treasurer Adams stated no it’s more of an administration pain and we do not do it for part time employees only full time and salary employees. Councilman Bannick moved to adopt the personnel policy with the addition of no smoking in city vehicles, seconded by Councilman Smith. Motion Carried.

Domestic Harmony Contract. Manager Terry stated to council that this organization provides services to our citizens and the contract calls for a reimbursement. Councilman Bannick moved to approve the contract in the amount of $300.00 to Domestic Harmony and authorize the Mayor to sign the contract, seconded by Councilman Chapman. Motion Carried.

Bills for Approval. Mayor Smith questioned the payment to the Hillsdale County Road Commission for a sewer upgrade. Manager Terry stated that’s our annual bond payment. The description is incorrect. Councilman Bannick moved the bills be paid in the amount of $150,658.52 and be charged to the proper accounts, supported by Councilman Siebert. Motion carried.

Police Report. Chief Michelin stated the police department will be receiving another laptop for the police cars and that the laptops were purchased under a grant program that will give the city a total of two laptops. Councilman Siebert moved the Police Report be accepted and placed on file, supported by Councilman Chapman. Motion carried.

Public Works Report. Councilman Siebert moved to accept the public works report seconded by Councilman Smith. Motion Carried

Treasurers Update. Treasurer Adams stated to the board that she would be calling a meeting with finance committee. Councilwoman Thomas asked that the meeting not to be on a Wednesday nor in the mornings. Treasurer Adams has turned over the delinquent taxes to the county and is still in the process of collecting some IFT’s and personal property.

City Managers Report. Manager Terry stated that he and the treasurer are working on the budget and it’s looking good with no reductions in services. Current projects that we are working towards are the third lift station on N. Chicago. Mayor Smith and I will be meeting with engineers tomorrow to discuss the N. Chicago lift station. Public Works Supervisor Langhann has been working on the lift station on W. Saint Joe. Manager Terry met with the Road Commission and there was a set aside for Economic Development Funds. The city was eligible to participate in this program for road paving. I will try to pave all of East and West Saint Joe. Streetscape still has a few things that need to be done with a few railings that need to put in place. Mayor Smith and I met with Consumers and we are changing the streetlights in the park to less wattage of a bulb, but the others will remain the same wattage. Councilwoman Thomas asked if the change would cost the city any money. Mayor Smith stated no. Councilman Bannick asked if the bulbs are under a warranty. Manager Terry stated he believes it is a two or one year warranty. The poles are the cities and are the responsibility of the city. Manager Terry stated he will coming back to council for a sewer project on E. St. Joe. The sewer needs to be replaced, but there is a new technique called insta-foam where the line is filled with this foam and is half the cost of replacement.

Committee Reports. Councilman Siebert stated that the Recreation Board will be trying to find ways to help raise money for the pool this season. Maybe a cash raffle. Councilman Bannick stated the Planning Commission is looking into the Vapor Recovery Federal Fitting for the gas stations. The cost was only $200 or $300 and it would stop around 10 to 15 gallons of vapor being released into the air. But the board questioned if so cheap why everyone hasn’t jumped on board with it, so the board has decided to look more into the program before making a decision.

Councilpersons Concerns. Councilman Siebert stated he has had a neighbor complain stating that the semi-trailers (county garage) are running through his yard. You can tell where the trucks are tearing up the ground. Although I know it’s the city property that is being destroyed the neighbor is the one who maintains the ground. Councilman Siebert asked if we can post a sign or something. Chief Michelin stated the city would half to pass an ordinance for no trucks to go down that street. Manager Terry stated that he will talk with the county about their trucks. Councilman Bannick asked if it was ever customary to do yearly reviews on a city manager. I had someone ask me. Mayor Smith stated it was at one time. Do you want to do a review. Councilman Bannick stated maybe we should although I don’t have any complaints. Councilman Siebert asked what is it (the review). Mayor Smith stated usually a back and forth session with the manager. The board brings out good and bad points you can suggest things you would like them to shoot for and sometimes the manager comes back at the council. Mayor Smith stated that he didn’t see an advantage to having one unless you have some issues and/or someone wants to give the manager some guidance on which way to go. Councilman Bannick stated that if anyone has a problem they can go to Doug.

Councilman Smith moved to adjourn, supported by Councilman Bannick. Motion carried. Meeting adjourned at 7:50 PM.

Susan Ballinger
Deputy Clerk

REGULAR MEETING
Litchfield City Council - City Council Room
February 9^th, 2010 - 6:30 PM

Mayor Smith called the meeting to order at 6:30 PM.

Roll Call: Present – Mayor Ed Smith, Councilpersons Don Bannick, Greg Chapman, Brenda Thomas, O R
                              Smith, Rick Siebert
               Absent – Councilman Charles Phelps
      Also Present – City Manager Doug Terry, Clerk Roger Sprague, Treasurer Jill Adams, Police Chief John
                              Michelin, Terry Miller

Consent Agenda. Councilwoman Thomas asked why we got the police vehicle alignment done at Giter Done Auto? Chief Michelin said because they were highly recommended, and there is nobody in town that does alignments. Councilman Bannick asked why the ad in the Homer Index for water quality was so high? City Manager Terry said that is almost a full page ad, and we are required by the EPA and the State of Michigan to disclose the full testing results. It is something we have to do annually. Councilman Bannick moved to approve the Consent Agenda as presented, supported by Councilman Smith. Motion carried.

Bills for Approval. Councilman Bannick moved the bills be paid in the amount of $27,746.19 and be charged to the proper accounts, supported by Councilman Chapman. Motion carried.

Police Report. Councilman Siebert moved the Police Report be accepted and placed on file, supported by Councilwoman Thomas. Motion carried.

Public Works Report. Manager Terry said we haven’t had much snow removal before today, and our salt costs are down. The projects we are looking at for his year are the N. Chicago Street sewer lift station, and we have had problems with compressor tanks by the trailer park on W. Saint Joe St. We will be meeting with Stan Clingerman with the County Road Commission soon about the Saint Joe Street paving project, and will bring a report back to Council. DPW has been working on equipment, Jay Wade is working 4 days a week and Doug VanKampen will be retiring toward the end of the month. Councilman Siebert moved to accept the Public Works Report and place it on file, supported by Councilman Smith. Motion carried.

Treasurers Update. Treasurer Adams said she has been preparing Doug VanKampens retirement documentation and working on the Personnel Policy. You should have that in front of you at the next meeting. It does not go into effect until July 1^st, so we have plenty of time. We are still working on preparing next year’s budget.

City Managers Report. Manager Terry said you had some information at the last meeting about the possibility of introducing fluoride into our drinking water. We did some research, and at this time the Administration recommends we not pursue this program, because of costs and conflicting science.

Manager Terry said he will be meeting with the Mayor and Consumers Energy on the 23^rd concerning the lights in the downtown park. We would like them to replace the lights in the park with 70 watt frosted, at no cost to us. Councilman Bannick said they would warranty the lights and be responsible? Manager Terry said that is the idea. Mayor Smith said we have asked for 70 watt bulbs in the Park, and 100 watts everywhere else. They have agreed to do the ones in the Park. Manager Terry said the State of Michigan is holding their money, so we have some leverage.

Manager Terry said we will be looking at a 5% reduction in our taxable value, and we could also see more Revenue Sharing cuts. We were just able to make the budget balance last year, and this year will be a challenge. There are no frills, raises or equipment this year, and travel has been greatly reduced. We should be in better shape than most communities. The Department Heads have been doing a great job trying to keep costs down.

Committee Reports. Councilwoman Thomas said the challenge with the Fire Board is to purchase new turn out gear. They are trying to figure out a way to do that. The grant monies for the radios have not been released yet.

Councilpersons Concerns. Councilwoman Thomas said if the Recreation Committee wants to keep the pool open 7 days a week, they need to be more proactive and come up with some ideas.

Councilman Bannick moved to adjourn, supported by Councilman Smith. Motion carried. Meeting adjourned at 6:50 PM.

Roger D. Sprague, CMC
City Clerk