City Council

PROCEEDINGS OF THE MANISTEE CITY COUNCIL – JULY 6, 2021 A regular meeting of the Manistee City Council was called to order by his honor, Mayor Roger Zielinski on Tuesday, July 6, 2021 at 7:00 p.m. in the City Hall Council Chambers, 70 Maple Street, followed by the Pledge of Allegiance. PRESENT: David Bachman, Lynda Beaton, Roger Zielinski, Jermaine Sullivan, Michael Szymanski, James Grabowski, and Erin Martin Pontiac ABSENT: None ALSO PRESENT: Interim City Manager/Finance Director – Ed Bradford, City Attorney – George Saylor, City Clerk – Heather Pefley, DPW Director – Jeff Mikula, Police Chief – Josh Glass, Fire Chief - Mark Cameron and City Engineer – Shawn Middleton CITIZEN COMMENTS ON AGENDA RELATED ITEMS None CONSENT AGENDA • Minutes - June 15, 2021 Regular Meeting June 22, 2021 Special Meeting • Financial Reports Cash Balances May 2021 Revenue & Expenses May 2021 • Notification Regarding Next Work Session – July 13, 2021, 7:00 p.m. at City Hall in Council Chambers. A discussion will be conducted on parking boats and campers in the City, City participation with Manistee Proud, and such business as may come before Council. • Consideration of Salt City Rock & Blues, Inc., to hold a Laborfest event, scheduled for Saturday, September 4, 2021, from 8:00 a.m. – 12:00 a.m. (Sunday, September 5, 2021). • Consideration of a temporary activity permit for Benzie County Conservation District boat wash stations. MOTION by Grabowski, second by Szymanski to approve the Consent Agenda as presented. With a roll call vote this motion passed unanimously. AYES: Bachman, Beaton, Zielinski, Sullivan, Szymanski, Grabowski, and Martin Pontiac NAYS: None CONSIDERATION OF A TRANSFER OF AN OBSOLETE PROPERTY REHABILITATION EXEMPTION CERTIFICATE FOR FRICANO’S MANISTEE RIVER, LLC, LOCATED AT 440 RIVER STREET. A request has been received from Ted Fricano to transfer the Obsolete Property Rehabilitation Exemption Certificate for 440 River Street from Chemical Bank (nka TCF Bank) to Fricano’s Manistee River, LLC. City Council acted on October 27, 2020, to establish the 440 River Street Obsolete Property Rehabilitation | Page 1  PROCEEDINGS OF THE MANISTEE CITY COUNCIL – JULY 6, 2021 District and approve the Obsolete Property Rehabilitation Exemption Certificate. Fricano’s Manistee River, LLC finalized the purchase of the property from TCF Bank on January 28, 2021. Public Act 146 of 2000, the Obsolete Property Rehabilitation Act, provides for the transfer of a certificate by the legislative body of the qualified local governmental unit. The Act does not require action by the Commission following the transfer by a qualified local governmental unit. MOTION by Grabowski, second by Sullivan to approve a resolution approving the transfer of an Obsolete Property Certificate for Fricano’s Manistee River, LLC. With a roll call vote this motion passed unanimously. AYES: Bachman, Beaton, Zielinski, Sullivan, Szymanski, Grabowski, and Martin Pontiac NAYS: None CONSIDERATION OF THE SALE OF CITY MARINA PROPERTY TO FRICANO’S MANISTEE RIVER, LLC. Fricano’s Manistee River, LLC, owner of 440 River Street, would like to purchase a portion of the City Marina property that is beneath the deck that is attached to the north side of the building and some property that is to the west of the building. They have agreed to pay $30,000. The marina property was developed with the assistance of a grant from the Michigan Department of Natural Resources’ Waterways Commission, and so the City is required to get their consent and approval for the sale. Additionally, the Waterways Commission requires that the proceeds of the property sale must go into a restricted marina fund to be used for future marina improvements. MOTION by Bachman, second by Szymanski to approve the sale of marina property to Fricano’s Manistee River, LLC, for $30,000, contingent on the consent and approval of the Waterways Commission, put the proceeds of the property sale into a restricted marina fund to be used for future marina improvements, and authorize the Mayor and City Clerk to execute all sale and closing documents on behalf of the City. With a roll call vote this motion passed, 5-2 vote. AYES: Bachman, Zielinski, Sullivan, Szymanski, and Martin Pontiac NAYS: Beaton and Grabowski CONSIDERATION OF ENTERING INTO A DEVELOPMENT AGREEMENT WITH LITTLE RIVER HOLDINGS, LLC, AND THE CITY OF MANISTEE BROWNFIELD REDEVELOPMENT AUTHORITY. The City and Little River Holdings, LLC, have been working on securing an EGLE grant and loan for demolition and environmental remediation for the Gateway Project. EGLE has indicated that the City and project qualify for a Brownfield redevelopment grant of $700,000 and loan of $800,000. As part of the application process for these funds, EGLE requires a development agreement outlining the responsibilities of the parties. MOTION by Grabowski, second by Bachman to enter into a development agreement with Little River Holdings, LLC, and the City of Manistee Brownfield Redevelopment Authority. Tom St. Dennis of Little River Holdings and Susan Wenzlick of Fishbeck responded to questions from Council. | Page 2  PROCEEDINGS OF THE MANISTEE CITY COUNCIL – JULY 6, 2021 With a roll call vote this motion passed unanimously. AYES: Bachman, Beaton, Zielinski, Sullivan, Szymanski, Grabowski, and Martin Pontiac NAYS: None CONSIDERATION OF A RESOLUTION ACCEPTING A $700,000 GRANT AND $800,000 LOAN FROM EGLE FOR BROWNFIELD REDEVELOPMENT AND AUTHORIZING THE INTERIM CITY MANAGER AND CFO TO EXECUTE ANY NEEDED DOCUMENTS, INCLUDING THE APPLICATION. The City and Little River Holdings, LLC, have been working on securing an EGLE grant and loan for demolition and environmental remediation for the Gateway Project. EGLE has indicated that the City and project qualify for a Brownfield Redevelopment grant of $700,000 and loan of $800,000. As part of the application process for these funds, EGLE requires a resolution and application. MOTION by Szymanski, second by Bachman to approve a resolution accepting a $700,000 grant and $800,000 loan from EGLE for Brownfield Redevelopment, and further authorize the Interim City Manager and CFO to execute any needed documents, including the application. With a roll call vote this motion passed unanimously. AYES: Bachman, Beaton, Zielinski, Sullivan, Szymanski, Grabowski, and Martin Pontiac NAYS: None CONSIDERATION OF THE PURCHASE OF A 2021 DODGE DURANGO SXT AWD. The Manistee City Police Department utilizes an unmarked police vehicle as part of the police fleet. This vehicle is assigned to the Detective Sergeant. Currently, that vehicle is a 2010 Ford Escape and is at the end of its life cycle. Bids have been solicited from MiDeals participants, as well as other dealerships and upfitting companies. One Dodge dealership and one upfitting company have been identified based on pricing and equipment needs. MOTION by Grabowski, second by Beaton to authorize the purchase of a 2021 Dodge Durango SXT AWD from Watson’s Manistee Chrysler for $27,608 and upfitting by Tel-Rad Inc. for $1,154. With a roll call vote this motion passed unanimously. AYES: Bachman, Beaton, Zielinski, Sullivan, Szymanski, Grabowski, and Martin Pontiac NAYS: None CONSIDERATION OF ACCEPTING A WATERWAYS GRANT AGREEMENT FOR THE MANISTEE MARINA DOCK REPLACEMENT PHASE 2 PROJECT. The City has successfully applied for a $203,000 Michigan Department of Natural Resources grant to assist in replacing the remaining five docks at the City Marina. Funding for the City's $213,700 match were included in the Capital Improvement Bond proceeds and are available. MOTION by Bachman, second by Martin Pontiac to approve a resolution and accept the Waterways Grant Agreement, authorizing the Mayor and Clerk to execute the agreement. | Page 3  PROCEEDINGS OF THE MANISTEE CITY COUNCIL – JULY 6, 2021 With a roll call vote this motion passed unanimously. AYES: Bachman, Beaton, Zielinski, Sullivan, Szymanski, Grabowski, and Martin Pontiac NAYS: None CONSIDERATION OF BUDGET AMENDMENT 2021-4 FOR FISCAL YEAR END JUNE 30, 2021. The City of Manistee is required by State law to ensure that actual expenditures do not exceed budgeted amounts. Over the course of the current fiscal-year, unanticipated and unbudgeted events and\or Council approved expenditures have occurred. The proposed budget amendment addresses expenditures associated with these events to ensure compliance with State statutes regarding appropriations. MOTION by Beaton, second by Grabowski to adopt Budget Amendment 2021-4 for fiscal year ending June 30, 2021. With a roll call vote this motion passed unanimously. AYES: Bachman, Beaton, Zielinski, Sullivan, Szymanski, Grabowski, and Martin Pontiac NAYS: None CONSIDERATION OF APPLICATIONS TO BOARDS AND COMMISSIONS. The City Clerk has taken action to advertise vacancies on the Compensation Commission, Historic District Commission, PEG Commission, and the Tree Commission. Mayoral and Manager appointments require a motion, second and Council voted support. Nominations for Council appointments do not require a second. After all nominations are made, Council votes on the nominees until one nominee receives majority support. The following applications have been received: *Incumbent HISTORIC DISTRICT COMMISSION. Two vacancies, terms ending 02/28/24; One member is desired who meets professional qualification standards for archaeologist, architect, architectural historian, historian, or historic architect; Council appointment. Thad Taylor – 581 Eighth Street Szymanski nominated Thad Taylor, 581 Eighth Street to the Historic District Commission term ending 2/28/24. With a roll call vote this nomination passed unanimously. AYES: Bachman, Beaton, Zielinski, Sullivan, Szymanski, Grabowski, and Martin Pontiac NAYS: None A REPORT FROM MANISTEE BLACKER AIRPORT. No report given. | Page 4  PROCEEDINGS OF THE MANISTEE CITY COUNCIL – JULY 6, 2021 CITIZEN COMMENT Dennis Skiera, 1453 Maple Road – voiced concerns with the current building inspector, inspection process, permit costs, and blight. OFFICIALS AND STAFF Bradford expressed appreciation to DPW, Police, and Fire staff for their great work over the holiday weekend. Middleton provided an update on the 8th Street project starting Monday and stated notices will be sent to the affected residents. COUNCILMEMBERS Bachman requested a background check be performed on the current building inspector. Beaton thought the Forest Festival Lite was well attended and recommended that a ramp be placed for access between the First Street parking lot and the area where vendors were located. Sullivan commented on the following: • allowable use of ARP funds • sign ordinance update • appointments to boards & commissions • SAFEbuilt concerns • recycling issues • blight report updates Martin Pontiac asked for updates on demolition of blighted house, social district, vehicle auction, and SAFEbuilt contract end date. Grabowski reiterated concerns regarding SAFEbuilt. Szymanski asked for update on the new ambulance. Zielinski stated he has submitted his resignation effective August 1, 2021. ADJOURN MOTION by Grabowski second by Beaton to adjourn at 8:10 p.m. Heather Pefley CMC/MiPMC City Clerk | Page 5