City Council

MANISTEE CITY COUNCIL STUDY SESSION MINUTES OF APRIL 11, 2023 The Manistee City Council met in a study session on Tuesday, April 11, 2023, at 7:00 p.m. in the City Hall Council Chambers, 70 Maple Street, Manistee, Michigan 49660. MEMBERS PRESENT: David Bachman, Lynda Beaton, Cindy Lundberg, Jermaine Sullivan, Seth Pratt, James Grabowski, and Erin Martin Pontiac MEMBERS ABSENT: None ALSO PRESENT: City Manager, Department Directors, Media, and Public PUBLIC COMMENTS ON STUDY SESSION RELATED ITEMS. Public comments received by: - Therran Ferguson, 428 1st Street- Essential Real Estate - Dennis Skiera, 1453 Maple Rd - Karen Goodman, 6th District County Commissioner, DDA member DISCUSSION ON NEIGHBORHOOD ENTERPRISE ZONES – Tracy Davis, Housing Ready Coordinator led the discussion on Neighborhood Enterprise Zone (NEZ) Program, which was established by Public Act 147 of 1992, as amended. This program provides a tax incentive for development and rehabilitation of residential housing. The qualified local unit of government may designate one or more areas as a NEZ to spur development and rehabilitation where it may not otherwise occur. Discussion included: • Focus on one area at this time • Proposed area in Maxwell Town • Process to designate NEZ and after zone is designated • Provides tax break on new repairs & new structures for up to 12 years • NEZ must be a contiguous area • Possible negative impacts • Owner/developer process for obtaining NEZ certificate • Certificate is transferable if property is sold • After 2 years, if improvements are not completed, certificate is revoked • Reviewed FAQ’s • Next steps in the process o Decide zone boundaries o Planning Commission/Assessor review o Is proposed NEZ consistent with Master Plan o Public hearing o Resolution DISCUSSION ON SHORT-TERM RENTALS – Councilmember Pratt led the discussion on short-term rentals and provided Council with a packet of information gathered including surrounding Council Study Session – April 11, 2023 Page 1 communities’ policies and procedures. In addition, Pratt expressed concerns with the lack of current procedures in place for short-term rentals in the City and further stated the City does not currently distinguish between long-term and short-term rentals. Discussion included: • Current listing on Air B & B for Manistee • Unregistered rentals • Enforcement • Informational flyer for rentals • Review of current ordinance • Ordinance committee review or create Ad Hoc Committee Consensus: Council directed the City Manager to look into creating an Ad Hoc committee to work on a short-term rental ordinance. DISCUSSION ON SAFEBUILT RENTAL INSPECTION PROGRAM – Glenn Lindsay, Midwest Director of Operations, and Kellie Lindsey, Account Manager, SAFEbuilt Inc. provided an update on the rental inspection program and also additional information on the building inspection program. A current profitability sheet was given to Council to review and a list of SAFEbuilt employees with the hours they logged to the City of Manistee. Discussion included: -Building Permit Services • Current 80/20 split with City • SAFEbuilt current profit margin not sustainable long term • Reviewed current valuation table • Permit fees have not been adjusted to match increased costs • Three options proposed to make SAFEbuilt contract with the City profitable 1. 100% of fees to SAFEbuilt 2. 90/10 split and increase to 2021 valuation 3. 80/20 split and increase to 2023 valuation -Rental Permit Services • 976 rental units in the City on Three (3) year inspection cycle • Currently has inspected 46% for 2023 • Reviewed current costs to administer the rental program • Amount of administrative time needed to manage rental program • One-time rental registration fee versus annual registration fee • Proposed contract improvement plan o Monthly administrative fee - $2200/month o Could offset with low annual rental registration fee - $25/year o Change frequency of inspection • Inspection & re-inspection fees • Checklist review • Permit requirements • Employee turnover • Negativity from rental program • Options if contract with SAFEbuilt is not renewed Council Study Session – April 11, 2023 Page 2 DISCUSSION ON 23-24 FISCAL YEAR BUDGET – City Manager Bill Gambill and Finance Director Ed Bradford reviewed questions from Council regarding the FY 23-24 Budget. Marihuana Tax Revenue - budgeted at $200,000 to General Fund in revenue section of budget Community Development - Full time position in budget to bring planning & zoning back in house - Reasons we originally outsourced this position - Additional controls bringing this back in house - Contract with County ends October 30, 2023 - Position needs admin support - Council would like more information on this position - Budget fully funds this position DDA Contract - DDA budget submitted without contracted amount for City services - Contract amount was included in the City FY 23-24 budget because of contract terms - 180 notice required if the contract is not to be renewed - Negative outcome if the DDA does not renew the contract - Services covered by contract - Additional communication needed with DDA Volunteer Fund - Specify use for funds Housing North - Council would like a work plan update - Three year contract in place Fire Department - Cross training with Police Department - Additional help needed on EMT - Current staffing at 6 firefighters plus the Chief - Currently advertising to fill 7th position - Requesting one full-time firefighter Motor Pool - Payments to motor pool - Fleet management DPW - Utilities - Water, Consumers - Appropriations in Parks & Recreation budget to comply with State chart of accounts Gambill will work to get answers to questions asked and discussion will continue at next week’s meeting. Council Study Session – April 11, 2023 Page 3 OTHER Pratt asked for update on the trim for view policy. Bachman inquired about yard bag pick up. Adjourned at approximately 9:13 p.m. Respectfully submitted, Heather Pefley, CMC/ MiPMC City Clerk Council Study Session – April 11, 2023 Page 4