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The City Council of Port Huron met at 7 p.m. in the Public Meeting Room of the Municipal Office Center, with a lot on the agenda to discuss. All members of the council were present and accounted for.

Presentation #1 was from Kim Harmer, Planning Director, concerning the proposed Community Development Block Grant Annual Action Plan.

Ms. Harmer gave a little background on the grants and stated that the HUD funds the city receives are based on the Census data collected. She said that it was VERY important that people fill out their census forms when they come in the mail as it will help our city receives the funds we need.

She stated that the procedure for this Annual Action Plan requires two public hearings. The Planning Department presents their plan and based on what the public input is, they put together the whole plan and present to city council. The program must benefit the low to moderate income residents of the city.

Over the years that the city has been involved with the CDBG funds, they have been able to help over 1400 home owners, construct one shelter for domestic abuse, buy a new fire truck, help build the new Council on Aging building. That's just a few of the things that they have been able to do.

The HOME funds have been available since 1995. This helps encourage home ownership by assisting with down payments and home owner seminars and budget classes. There are income limits with a family of 5 being able to make $60,000 a year at the top of the scale.

This year they are anticipating $867,500 which is what they received last year, but they won't know until mid-May. The did add Safe Horizons request of $17,500 which is the amount they requested.

The HOME dollars must be set aside to assist with home ownership and down payments. They have also been able to help with Habitat for Humanity in buying and fixing homes.

Mayor Pauline Repp thanked Ms Harmer and asked where the $17,500 for Safe Horizons came from since it was not planned for originally. She also asked Ms. Harmer could be more specific on where the administrative fees were going.

Ms. Harmer said that they had enough money that they could give Safe Horizons so it didn't take away from anything else. Also the administrative fees would be used partially to pay back the general fund and partially to pay for a couple workers to take on the extra duties to deal with the funds.

Presentation #2 was to show the Special Budget Session and was given by Bob Eick and John Ogden and was added at the last minute to the agenda.

Chief Eick said the state of Michigan had been sliding into recession since 2002. Since then revenue sharing has dropped and income tax has been reduced because of the huge amount of job losses.

In 2002 the city had 321 full time positions. As of June 30, 2010, there will be a 25% decrease in full time workers since 2002. What does this mean in savings? Approximately $13 million and after a few more employees retire this year, the city is looking at a $4.5 million savings.

Some of the savings have been helped by Pension and Health care sharing with comes to another $2.5 million.

The city has always looked at the reduction in employees through attrition. They have spent time cross training and consolidating services. Of course with a loss of employees, the services will be impacted.

Mr. Ogden took over from there stating that water/sewer rates would not have to increase this year if everything were to stay the same. Right now the projected debt service on the CSO project is $9 million. By 2020 it will jump to about $12 million. After 2021 it begins to decline.

Mr. Ogden broke down each department budget which includes $7 million for the police force and $5 million for the fire department.

At this time he is recommending a 6% annual increase in water/sewer rates, which would limit the adjustment to about $3 per month for average usage. He said they compared this to other utilities over the last 7 years. Natural gas went up and down so that was hard to gage. Electricity went from $60 per month 7 years ago to $100 now. Cable TV went from $40 to $60.

When comparing water bills with other communities (using 2,000 cubic feet per quarter) Port Huron is in the middle.

Because of some of the issues Port Huron has, the bond rating has gone down from A+ to A. Some of the concerns in that rating were transfers to water and sewer funds from savings and lack of rate increases.

In 2007 rates were increased by about 12%. Since that date the city has successfully gotten the DEQ to extend the finish date of the CSO project to 2016. The city also sold Grandview Towers for $4 million and received an extraordinary income tax collection of $1.5 million when someone won the lottery.

Councilmember Alan Lewandowski asked if Mr. Ogden knew how many cities he used in his comparison were going through CSO projectes.

Mr. Ogden was not sure but thought Grand Rapids was one, as well as Marysville. But he did know we are one of the few doing it.

Mayor Pro-tem Miller wanted to know if Detroit was being held to the same standard as we are. He wanted to know if we might have a basis for a law suite if we are being held to a higher standard than Detroit.

City Engineer Bob Clegg said that each city uses different approaches to doing the work. Some chose retention basins and others do complete separations. The City of Detroit was looking at $1.2 billion to comply with the DEQ. They went out looking for bids and they came back very high and are in a holding pattern with the DEQ at this time. He also stated that after this next phase of the project, the city will have reduced their sewage overflows by 93%.

Mayor Pro-tem Miller still wanted to know if there was any legal recourse the city could take as it is broke and there is no money.

Gary Fletcher, legal council for the council and city, stated that there is none. He said that he was involved with brokering the deal with the DEQ and Port Huron received more time than what they expected. They also told the city that if they didn't get the sewers separated by the specific date they set, they would pull the permit and the city would no longer be able to give water or sewer services to the residents.

One of the reasons it appeared Detroit was receiving better treatment than Port Huron was because there were law suites from the out lying municipalities that used Detroit sewer and water. This held things up in court for about 7 years because they couldn't agree on who did what and who should pay for what.

Councilmember Jim Fisher wanted to clarify that if the city increased rates annually by 6%, it would be 8 years before it leveled off. He decided to do the math and multiplied 6 X 8 which is about 48% and actually ends up about 71% before the end of this.

This ended this presentation and Mayor Repp moved on to Public Audience

Councilmember Brian Moeller became city resident Brian Moeller and said that he felt the finance director was not giving the full story to the public. The work force reductions were by attrition so no one had really been laid off besides the city attorney, with a savings of about $150,000. The city attorney's assistant had been moved to a job in the police department to basically that position had not been eliminated. He also wanted to set the record straight that the Police Department had not laid off 15 officers. 11 of those people were dispatchers who had either been laid off or moved to the county when the city let the county take over dispatching duties. He doubts he city is broke and if someone wants to see a broke city, they should go work in Hamtramic like he does from time to time.

Anthony America was offended that Mayor Repp would not let him put the picture of the dead little girl on the big screen. He then went on to reprimand everyone for child abuse. He wants the death penalty for anyone convicted of child abuse.

Doug Hannon, Fort Gratiot township Supervisor, spoke concerning the rate increases and what it will mean to the townships. Actually, for them, it will be more like a 9% increase than a 6% for the city. He feels the city is balancing it's budget on this which is not making the townships happy at all. He pointed out that they pay 60% of the cities water revenues.

Bob Lewandowski, Port Huron Township Supervisor also stood against water rate increases. He agreed with everything Mr. Hannonn said. He said it was time for everyone to work together and the township has spent millions of dollars to separate their own sewers to help stop over flow in Port Huron since their sewage goes through the city sewage plant.

Michael Marks, Clyde Township Supervisor agreed with the other two supervisors. They buy water at bulk rate so they could get it at a lesser rate. They feel like they are being treated like they aren't needed or wanted. He felt the township should not carry the burden of 1 1/2 times what Port Huron pays. He said they see increases year after year.

Ken Harris spoke concerning the CDBG funds and says everything revolves around money. He felt we should not continue to support Safe Horizons as other local charities that help homeless and those who need food can find ways to support themselves. He doesn't agree with the water rate increases and feels the budget need to be reviewed for further cuts.

Mike Bodeis is against any rate increases and agreed with Ken Harris that there needs to be more cuts at the city level.

Mark Byrne spoke concerning the City Manager #1, and didn't think the administration needed to buy a brand new aerial truck. He had gone online and found one or two used ones for $40,000 that would probably work just as well. Anything the city saves now can go towards the CSO debt reduction. He doesn't want to see rate increases this year either.

Pam Sawyer said that she had been studying the figures and has attended many meetings to be able to learn more about how this works. She would like to see open discussion of the figures so everyone understands this better and although it's not popular, the city can't continue to borrow the money from the general fund to pay for this project. Pretty soon the money will run out.

COMMUNICATIONS AND PETITIONS

#1 - Notification from the Michigan Liquor Control Commission that they have received an application from The Pointe Pastry Shoppe, LLC, requesting transfer location (governmental unit) of 2009 SDM license (to sell beer and wine for consumption off the premises only) from 35438 Jefferson, Harrison Township, Michigan, Macomb County, to 324 Superior Mall, Port Huron Michigan.

Councilmember Alan Lewandowski wondered what selling wine and beer for consumption off site meant. No one seemed to know and Mayor Repp said that this was just purely to receive and file this request.

FROM THE CITY MANAGER

#1 - Recommendation that the bid of Wolverine Truck in the amount of $128,169.00 for an aerial truck for use by the Parks and Forestry Division be accepted.

Councilmember Moeller agreed with Mr. Byrne that if the city could get a decent used truck for $40,000, they should look into it before buying a new one.

Mayor Pro-tem Miller asked if this was feasible.

Mr. Clegg said that this was included in their vehicle budget. The particular piece of equipment they have now is 18 years old and the maintenance on it is going up because they are having issues with getting parts for it. By buying it new, they would be sure OSHSA would approve it and they would be assured of finding parts for it.

Mayor Pro-tem Miller asked about the idea of purchasing a used truck.

Mr. Clegg said he would never consider buying something this important on the internet without a mechanic looking it over and that would depend on how far away it was.

Councilmember Lewandowski said he agreed with Mr. Clegg. He said that the city should not be putting workers up in that.

Councilmember Moeller said those trucks are usually very safe. He was one of the officers who investigated the accident where the guy fell to his death out of the basket and found the employee didn't use his safety equipment properly.

Chief Eick said they used the truck 5 days a week in the summer and about 3 days a week in the winter.

Councilmember Moeller said that if the city is going to say it is broke, then they needed to prove they are broke. Broke people don't buy things brand new.

Mayor Repp asked if the city had looked into privatizing.

Chief Eick said they had looked into it extensively and it was not economically the best thing for the city.

Mayor Repp asked if the bids had come in as expected?

Mr. Clegg said that they had.

Councilmember Moeller said that his earlier statement about the employee falling had been incorrect as there was safety equipment in the vehicle.

The council voted and it passed with Councilmembers Moeller, Miller and Fisher voting no.

City Manager #2 was a recommendation that the quote of DuBois-Cooper Associates, Inc., in the amount of $32,913.00 for a Wemco-Hidrostal submersible pump for the 10th Street pump station be accepted. There was no discussion and it passed unanimously.

RESOLUTIONS

Resolution # 1 was authorizing payments 1 through 17.

Mayor Pro-tem Miller said that the city must pay it's bills.

It was voted on and passed unanimously.

Resolution #2 acknowledging the business, employment, ownership of property, or other activities of City Council members.

Each councilmember had submitted information on themselves that could cause a conflict of interest. This was voted on and passed unanimously.

Resolution #3 confirming and declaring single lot special assessments in the amount of $357.28 for special trash pick up and/or removal of ice and snow in the right-of-way. This was voted on and passed unanimously.

Resolution #4 was to authorize and approve the submission of the City's Consolidated Plan for 2010-2014 and the Annual Action Plan for Program Year 2010 to the U.S. Department of Housing and Urban Development for their review and approval and authorizing the Community Development Director to sign all necessary sub-recipient and rehabilitation program agreements. This was voted on and passed unanimously.

Resolution #5 would schedule a public hearing on March 22, 2010 to hear comments on the request of Domtar Industries Inc., for an Industrial Facilities Exemption Certificate for facility expansion. This was voted on and approved unanimously.

Resolution #6 would authorize the Zoning Administrator to issue a special approval use permit for multi-family residential dwellings in a CBD (Central Business) zoning district at 512/514 and 516/518 Glenwood Avenue.

Mayor Pro-tem Miller wanted to know what the situation was.

Ms. Harmer stated that these were two duplexes that had gone through foreclosure. The bank (which appeared to be Citizens First Bankcorp) had asked the city for a special certificate as there is a buyer who wants to fix it up and use it for tenants. It had gone before the Planning Commission and they had voted yes on this.

Councilmember Lewandowski said he was one of the people on the Planning Commission that had voted no on it because he felt these buildings were blighted and this has been problem with houses there forever.

Councilmember Sherry Archibald asked what would happen if the council said no.

Ms. Harmer said that it would have to be sold as commercial property but there was a parking problem there . . . basically there was no parking.

Councilmember Moeller asked if the property was valueless?

Ms. Harmer said that because of parking situations, the building might have to be torn down.

Mr. Cuttler from the bank was present and the Mayor asked him to come forward if he wanted to say anything. He stated that the property was not in good shape and the bank would be taking a $100,000 hit on it. He did not think it would be feasible for commercial use.

Councilmember Moeller wanted to know if the council put a six month limit on the deal, could the bank close a sale before then.

Mr. Cuttler said he had a potential buyer but that person would only buy the property based on the decision the council made that night concerning the special permit.

Councilmember Lewandowski said he didn't like that word potential buyer.

Councilmember Moeller said he doesn't have a problem with the parking if it was kept a duplex because the lofts downtown use the lots around it for parking.

Ms. Harmer said that the buyer would enter into a work agreement with the city. This could be spelled out in the Special Permit.

Again, Councilmember Moeller asked if this thing could be worked out in a month with the buyer.

Mr. Cuttler said he felt it could probably be done in a week.

Councilmember Fisher asked what the closest residential district was.

Ms. Harmer said it was across the street on Superior.

Councilmember Fisher said the math just does not work out to him. He ran some numbers and he felt the buyer could never fix it up and turn a profit.

Mayor Pro-tem Miller asked that they postpone any action until Ms. Harmer reported back on the viability of the buyer.

Councilmember Fisher felt that the council would be doing the same old governmental thing and not making a decision. Either pass it or don't pass it.

There was a motion on the floor for a postponement, which the council voted on and it failed.

Mayor Repp then said that still left the original resolution to be voted on. The council voted and it failed.

Resolution #7 would approve the grant agreement with the Department of Energy, Labor and Economic Growth for an Energy Efficiency Conservation Block Grant in the amount of $128,252 and appointed Robert E. Clegg, City Engineer/Director of Public Works as the project coordinator and authorized representative for all aspects of the grant agreement. This was voted on and passed unanimously.

Resolution #8 was directing the City Manager to present a budget to the City Council for the 2010-2011 budget year that includes no water or sewer rate increases. This resolution was requested by Councilmember Moeller.

Mayor Pro-tem Miller wanted to clarify that this would direct the Administration to bring back a budget that shows no rate increases.

Councilmember Moeller stated that six of the seated councilmembers had stated during the campaign that they would not vote in a rate increase in their first year.

Mayor Repp was upset with Councilmember Moeller's statement and she did not specifically say she would not raise rates. She said the words she had used were, it was not her INTENT to raise them.

Councilmember Lewandowski spoke on the townships issues and said he does not think it would be penalizing the townships because they signed a contract with the city.

Councilmember Moeller said that Port Huron has the highest property tax, and an income tax and he felt that if anyone was penalized, it was the citizens of Port Huron. When he took office over 2 years ago, the Administration was saying they would be in dire straights by 2012. Now they have pushed it back to 2014. It's a proven fact that when water rates raise, water usage goes down and the city loses revenue. He said that we don't know what the economy will be like in 4 years and maybe people will be able to pay more for water at that time. At the last meeting the council voted to send a letter opposing the State to stay away from them. He said this made no sense because the State was looking to help the cities save money which could be used to help pay the debt service. He said the city never laid anyone off except the city attorney. He does not believe the city is broke and they really haven't cut anything. Other cities are hurting and they cut things.

Councilmember Lewandowski said the reason the city isn't broke yet is because they were able to sell Grandview Towers and there were the lottery winnings. He said that nobody knows what the economy is going to be and what if it got worse.

Councilmember Archibald wanted to clear this up for her own benefit. She said that by voting no on this they were not voting yes on rate increases. She said she felt the Administration needed an opportunity to look at all options.

Councilmember Ruiz said he agreed with Councilmember Archibald.

Councilmember Fisher said he wanted to correct his math from earlier. It would be an increase of 59%, not 71% when all was said and done. He said the bill has to be paid one way or another and believes there are more cuts to be made. He warned everyone that the 6% increase number is out there and people should not fool themselves into thinking that this 6% figure will be the one the Administration comes back with and this budget will pass with that in there.

Mayor Repp said our variables are unknown right now. Property taxes went down which gives relief on that end. She does not feel it's fiscally responsible for the city to borrow money to pay this debt.

The council voted on this and it failed with Councilmembers Fisher and Moeller voting for it.

At that time, Mayor Repp passed out a resolution she wanted to introduce, which would be known as Resolution #9. She read it out loud and it asked for the Administration to prepare information for the council to consider before the actual budget meeting which would give the council more time for input and more time for thinking. She had specific dates in April that she wanted this information by.

The council voted and it passed unanimously.

At this time the Mayor read some announcements.

On March 9th the Charter Commission will meet at 7 p.m. in room 408 of the Municipal Office Center.
March 10th, the Quality of Life commission will meet at 5 p.m. in room 408 of the MOC building.
March 15th is a Special Council meeting at 7 p.m. in room 408 of the MOC to discuss economic development.
Census questionnaires must be returned by April 1. Federal funds are awarded to states and local communities based on census data received. She asked that all residents fill this out so they can be counted.
April 5th has the Charter Commission scheduling a public hearing at 7 p.m. in the Public Meeting Room of the MOC to hear comments on the proposed revisions of the Charter

Pam Long 03/08/2010
So sad that these new members were voted in. It will be the same old, same old. Fisher and Moeller will vote for the citizen's benefit, but the rest could care less.