City Council Minutes

7:00 P.M. – OWOSSO DRAIN BRIEFING

Gregg Guetschow, City Manager, introduced the topic of the Owosso Drain Project briefing.  He turned the meeting over to City Attorney William Brown.  Mr. Brown outlined the following Procedural History:  A) CCSQ litigation-mid 1980’s; B) Petition July 7, 1997 – Council action; C) Necessity Hearing October 8, 1997; Project necessary but City pays; D) City appeals to Probate Court (We win); E) Township appeals to Circuit Court (We win); F) Negotiated Settlement – 1. City and Township each assessed 7%, 2. City agrees to pay 56.27% and Township to pay 43.73% of 14%; G) Hearing on assessments; H) Four entities appeal assessments to Circuit Court (trial probably later this year); and I) Settlement.

There was general Council/Staff discussion regarding possible settlement of the Fisher and Roszman lawsuits; suggestion that city pay assessment with property owners agreeing not to develop their property for a term of 20 years; and Owosso Township is seeking to have project size reduced. Gary Burk, Utilities Director, commented regarding the cost and the scope of the project.  He commented that four different engineering development firms came to the same conclusion.  He also commented that the original $2.5 million project was stalled for years because of litigation and that the cost today for the project as designed would be approximately  $3.3 Million.  City Manager Guetschow closed with comments regarding the options available to the city; why we should do this project – cost versus benefit; the cost of flood insurance versus assessments; reducing size of flood plain and eliminating need for flood insurance.  There was further Council discussion regarding flood insurance reductions; net cost to property owner; and upstream improvements.  City Manager Guetschow and Utilities Director Burk responded to council questions regarding flow from the south and the Hartshorn Drain project.

7:46 P.M. – REGULAR MEETING

PRESIDING OFFICER:           MAYOR JOHN C.M. DAVIS
OPENING PRAYER:              REV. RAY STRAWSER, FIRST BAPTIST CHURCH
PLEDGE OF ALLEGIANCE:   MAYOR JOHN C.M. DAVIS

PRESENT:                              Mayor John C. M. Davis, Mayor Pro-Tem Susan J. Osika, Councilpersons Joane E. Ford, Justin R. Horvath, Mark D. Owen, Linda L. Robertson, and Charles J. Sumrack.

ABSENT:                                 None.

APPROVE AGENDA   

Motion by Mayor Pro-Tem Osika to approve the Agenda as presented.  Motion supported by Councilperson Sumrack and concurred in by unanimous vote.

APPROVE MINUTES – REGULAR MEETING OF JUNE 21, 2004

Motion by Councilperson Owen to approve the Minutes of the Regular Meeting of June 21, 2004 as presented.  Motion supported by Councilperson Horvath and concurred in by unanimous vote.

Mayor Davis read the Rules for Addressing the City Council.

CITIZEN COMMENTS  

Terry Carriveau, 114 North Howell Street, apologized to Mayor Pro-Tem Osika for his comments regarding her at the last meeting.  He also commented regarding the Owosso Drain project and the flood plain.

William Owen, 1309 Herman Street, asked when they were going to put the bricks on Michigan Avenue.

Rev. Ray Strawser spoke in support of the Rain Street project and the Habitat program.

Mike Powers, Durand, introduced himself as a candidate for State Representative.

Janet Hill, 735 Coventry Court, commented in opposition to the Rain Street project.

Shelva Cebulski, 1243 Marion Street, offered positive comments on the recent fireworks and the flower baskets in the downtown.

Burton Fox, 216 East Oliver Street, commented regarding stereotyping of Habitat homes.  He also commented regarding rental properties and suggested a rental inspection program.

Sam Burwell, 314 East Mack Street, introduced himself as a candidate for Drain Commissioner.

Tom Pearson, 1301 Huntington Drive, representative of Habitat for Humanity, commented regarding purpose of Habitat.

City Manager Guetschow responded to Mr. Carriveau’s question regarding the flood plain.

Councilperson Owen commented regarding Ms. Hill’s comments regarding Habitat homes.

CONSENT AGENDA

Motion by Councilperson Ford to approve the Consent Agenda as follows:

Bid Award.  Accepted low bid from Industrial Supply for a variable speed vertical milling machine at $9,812.00.  

Purchase Authorization.  Authorized purchase of Quicklime from Charmeuse as follows:  $91.47 per ton for High Calcium Small Pebble Quicklime and $81.47 per ton for High Calcium Quicklime Fines for the fiscal year beginning July 1, 2004. 

Contract Payment.  Authorized Progress Payment No. 2 to Barnhart and Son in the amount of $56,810.76 for installation of sanitary sewer in Phase One of the Osburn Lakes Site Condominium Project.

Contract Payment.  Authorized Progress Payment No. 1 to Cobblestone Pavers in the amount of $6,600.00 for installation of brick pavers on Michigan Avenue.

Change Order.  Authorized Change Order No. 1 to add $14,229.03 to the contract with Perrin Construction for the Michigan Avenue Reconstruction Project.  

Contract Payment.  Authorized Final Payment to Perrin Construction in the amount of $37,146.73 for work completed on the Michigan Avenue Reconstruction Project.

Payment Authorization.  Authorized payment to Bendall Well Drilling in the amount of $5,280.00 for the new well and pump at Collamer Park. 

Motion supported by Mayor Pro-Tem Osika. 

Roll Call Vote. 

AYES:               Councilperson Ford, Mayor Pro-Tem Osika, Councilpersons Owen, Sumrack, Horvath, Robertson, and Mayor Davis. 

NAYS:              None. 

ITEMS OF BUSINESS

EXTENSION OF CONSTRUCTION HOURS – M-52 Bridge Project

Motion by Councilperson Owen to approve the request to extend working hours to 8:00 p.m. for the M-52 bridge project. 

Motion supported by Councilperson Horvath. 

Roll Call Vote. 

AYES:               Councilperson Owen, Sumrack, Mayor Pro-Tem Osika, Councilpersons Robertson, Horvath, Ford, and Mayor Davis. 

NAYS:              None. 

EMERGENCY MANAGEMENT PROGRAM DISSOLUTION

Motion by Councilperson Owen to approve the following resolution to discontinue the Emergency Management Program: 

WHEREAS,       effective July 1, 2004, the City of Owosso, Michigan will discontinue its Emergency Management Division; and 

WHEREAS,       it has been determined that in order to continue the Emergency Management Division in the City of Owosso and to meet State and Federal regulations that it would take a minimum 25% of the time of a full time employee; and 

WHEREAS,       Shiawassee County now has one full time employee dedicated to Emergency Management, as required by Michigan Law, with resources to administer the necessary emergency plans and State and Federal funding for all entities in Shiawassee County; and

THEREFORE, BE IT RESOLVED THAT the Owosso Public Safety Department will coordinate with the Shiawassee Emergency Management Coordinator and develop a Support Plan for the City of Owosso, which will be maintained under the single umbrella of the Plan of Action of Shiawassee County Emergency Management. 

Motion supported by Councilperson Robertson.

Roll Call Vote. 

AYES:               Councilpersons Owen, Robertson, Ford, Mayor Pro-Tem Osika, Councilpersons Horvath, Sumrack, and Mayor Davis. 

NAYS:              None. 

PROPERTY SALE – Osburn Lakes Single-Family Site Condominium Project

Philip Hathaway, Director of Community Development, commented regarding the project and distributed copies of the Lot cost estimates.  Mr. Hathaway introduced Mark Nemer, representative of Woodside West, LLC.  Mr. Nemer commented regarding the project and distributed copies of the “Neighborhood in a Box” presentation.  Mr. Nemer commented that the development was exceeding expectations.  There was general council discussion regarding the development.

Motion by Councilperson Ford to authorize an exclusive option to build out the development for $166,000 and other considerations per terms of the Second Purchase Agreement with Woodside West, LLC for the Osburn Lakes single-family site condominium project.

Motion supported by Councilperson Horvath.

Roll Call Vote. 

AYES:               Mayor Pro-Tem Osika, Councilpersons Owen, Horvath, Ford, Sumrack, Robertson, and Mayor Davis. 

NAYS:              None. 

Due to the length and various drawings and charts, the above referenced Second Purchase Agreement is on file in the Office of the City Clerk. 

RAIN STREET DEVELOPMENT 

Mayor Davis commented on impact statement provided by City Assessor Larry Cook. 

There was general Council/Staff discussion regarding the proposed project.   There were concerns and questions regarding money coming from General Fund, lot sales would not meet expectations, economics of project, people would be upset that city would be giving away property, Habitat for Humanity participation in the project, government’s responsibility to the community, 1% administrative fee recently enacted, selling the lots outright, Council deciding if the City has a role in affordable housing, selling to a developer for a multi-family development, zoning, the initial Osburn Lakes development and the neighborhood response, available Brownfield areas for this type of development, development of property as a park and future maintenance costs, open space conservation area, and future development of property on Rain Street and Ash Street not owned by the City  

City Manager Guetschow commented that five affirmative votes are needed for sale of city-owned property and if the five votes are not available we shouldn’t proceed with the project.

Motion by Councilperson Ford to authorize staff to proceed with the proposed Rain Street Development.

Motion supported by Councilperson Robertson. 

Roll Call Vote. 

AYES:               Mayor Pro-Tem Osika, Councilpersons Robertson, Ford, and Mayor Davis.

NAYS:              Councilpersons Sumrack, Owen, and Horvath.

Motion passed but staff will not proceed with the project due the lack of five affirmative votes.

EXECUTIVE SESSION 

Motion by Councilperson Owen to authorize holding an executive session at conclusion of regular business for the purpose of discussing property acquisition.

Motion supported by Councilperson Sumrack. 

Roll Call Vote. 

AYES:               Councilperson Robertson, Mayor Pro-Tem Osika, Councilpersons Ford, Owen, Horvath, Sumrack, and Mayor Davis. 

NAYS:              None. 

COMMUNICATIONS 

Owosso Historical Commission.  Minutes of Meeting of June 15, 2004.

Ronald G. Baker, City Engineer.  Invitation to Michigan Avenue bricklaying ceremony.

CITIZEN COMMENTS

Betty Coon, 1204 Palmer Street, commented regarding the action taken on the Rain Street proposal.  She also commended Councilpersons Owen, Horvath, and Sumrack for their input.

Shelva Cebulski, 1243 Marion Street, commented regarding Councilperson Robertson’s comments about “everybody has a dream”.

William Owen, 1309 Herman Street, inquired about the status of the Vaungarde and Woodard Buildings.

Burton Fox, 216 East Oliver Street, commented regarding the Council action related to the Rain Street project.

Councilperson Horvath commented regarding a recent Flint Journal article about the candidates for Owosso Township trustees and their wanting to work with the City for water.

City Manager responded to Mr. Owen’s comments regarding the Vaungarde and Woodard buildings.  He also responded to Mrs. Coon’s comments regarding the 1% administration fee and further commented that there was already a fee administered for the school tax.

Councilperson Robertson commented further regarding affordable housing.  She also commented regarding rental property and challenged the City to initiate a rental inspection program.

Mayor Davis responded to Councilperson Horvath’s comments regarding the township water issue.

ADJOURN TO EXECUTIVE SESSION

Motion by Councilperson Owen to adjourn to Executive Session.

Motion supported by Councilperson Sumrack and concurred in by unanimous vote.

THE CITY COUNCIL ADJOURNED TO EXECUTIVE SESSION AT 9:14pm.

THE CITY COUNCIL RETURNED FROM EXECUTIVE SESSION AT 9:30pm.

EXECUTIVE SESSION MINUTES – MARCH 1, 2004

Motion by Councilperson Owen to approve Executive Session Minutes from the meeting of March 1, 2004 as presented.  Motion supported by Councilperson Robertson and concurred in by unanimous vote.

ADJOURNMENT

Motion by Councilperson Owen for adjournment at 9:32pm, supported by Councilperson Sumrack and concurred in by unanimous vote.

John C.M. Davis, Mayor

Gail L. Schultz, City Clerk