City Council Minutes

PRESIDING OFFICER:             MAYOR JOHN C.M. DAVIS

OPENING PRAYER:                 CITY MANAGER GREGG G. GUETSCHOW

PLEDGE OF ALLEGIANCE:     CITY CLERK GAIL L. SCHULTZ

PRESENT:                               Mayor John C.M. Davis, Councilpersons Justin R. Horvath, Mark D. Owen, Linda L. Robertson, and Charles J. Sumrack.

ABSENT:                                  Mayor Pro-Tem Susan J. Osika and Councilperson Joane E. Ford.

APPROVE AGENDA

Motion by Councilperson Robertson to approve the Agenda as presented. Motion supported by Councilperson Sumrack and concurred in by unanimous vote.

APPROVE MINUTES – REGULAR MEETING OF JUNE 6, 2005

Motion by Councilperson Robertson to approve the Minutes of the Regular Meeting of June 6, 2005 as presented with the correction of the motion to approve a Purchase Agreement to read as follows: “Motion by Mayor Pro-Tem Osika to authorize an agreement to purchase Lots 2, 3, 4, 5, and 6 of Block 33 of the ML Stewart and Company’s 2^nd addition to the City of Owosso, Shiawassee County, Michigan (Spiegal Street property) from Irene Tinklepaugh in the amount of $30,000.00 and to further authorize Gary M. Burk, Utilities Director; John C.M. Davis, Mayor; Gregg G. Guetschow, City Manager; and Gail L. Schultz, City Clerk to execute appropriate documents.”

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

MAYOR DAVIS READ THE RULES FOR ADDRESSING THE CITY COUNCIL.

PROCLAMATIONS / SPECIAL PRESENTATIONS

Director of Public Safety Michael T. Compeau introduced Police Officer Justin Moore.

PUBLIC HEARINGS

REZONING REQUEST – 426 Clinton Street

Philip B. Hathaway, Director of Community Development, reported that the Planning Commission had unanimously recommended the rezoning of this parcel to OS-1, Office Service District.  The Planning Commission determined that the OS-1 designation was more compatible with the purpose and the character of the adjoining residential parcels.

The public hearing was conducted to receive citizen comment regarding the request to rezone the parcel commonly known as 426 Clinton Street from RM-2 Multiple Family Residential District (high rise) to B-1 Local Business District.

There were no public comments.

Whereas, the Council, after due and legal notice, has met and there being no one to be heard, motion by Councilperson Robertson that the following ordinance be adopted:

ORDINANCE NO. 667

AN ORDINANCE TO AMEND SECTION 38-27 OF CHAPTER 38 OF THE CODE OF ORDINANCES OF THE CITY OF OWOSSO, MICHIGAN.

THE CITY OF OWOSSO ORDAINS:

SECTION 1.  That Section 38-27 of Chapter 38 of Article II of the Owosso City Code, District Boundaries, is hereby amended by changing the designation of the following lots and parcels of land designated in a zoning map of the City of Owosso, and referred to in said Section and made a part thereof, which said lots and parcels hereby intended to be redesignated are not described in body of said Section as in certain zone districts; said designation being as follows:

APPLICANT:                             David E. Duryea, President
                                                St. Charles Enterprises
                                                5933 Eagles Way
                                                Haslett, MI 48840

PROPERTY ADDRESS: 426 Clinton Street

PROPOSED REZONING:           FROM:              RM-2    Multiple Family Residential District – High Rise

TO:                   OS-1    Office Service District

PROPERTY DESCRIPTION:       LOT 13 WOODARDS SUB OF BLK 1 A L WILLIAMS ADDN

LOT SIZE:                                 50’ X 150’

SECTION 2.  The changes made in the zoning in the lots and parcels of land hereinbefore described are hereby ordered to be redesignated on said map in accordance with this Ordinance.

SECTION 3.  This Ordinance shall take effect July 10, 2005.

Motion supported by Councilperson Sumrack.

Roll Call Vote.

AYES:              Councilpersons Horvath, Sumrack, Robertson, Owen, and Mayor Davis.

NAYS:              None.

ABSENT:          Mayor Pro-Tem Osika and Councilperson Ford.

REZONING REQUEST – 1231 West Main Street, 201 Robbins Street, and 208 Morris Street

Philip B. Hathaway, Director of Community Development, addressed the City Council regarding the PUD designation.

Mr. Hathaway reported that the Planning Commission had unanimously recommended the requested rezoning based upon the following twelve findings (from the standards from PUD ordinance provisions):

1)         that there would be no adverse impact on public utilities and streets;

2)         that the project, through design, layout and land use mix would have a beneficial effect on the city and the neighborhood;

3)         that sufficient open space is provided;

4)         that there would be employment and business access benefits to the community;

5)         that the supply of affordable housing would be expanded;

6)         that the reuse of the site contributes to the character and form of the established neighborhood;

7)         that the project reduces the nonconformities of the former collection of buildings;

8)         that there is no other single zoning classification available to the site that could accommodate the beneficial effect of the project proposal;

9)         that the residential densities fit the general approved plans about the city for comparable residential development;

10)       that the Comprehensive Analysis letter to the City sufficiently demonstrates the special benefits of the project;

11)       that there is safe, convenient, uncongested, and well-defined vehicular and pedestrian circulation within and to the district; and

12)       that disturbance to natural features (none identified at this site) and architectural features are limited to what is absolutely necessary and that the reasonable use of land and benefit to the community is greater than negative impacts.

The Applicant requested a change in the Letter of Supplemental Regulations to provide for a ten foot setback for Building B.

The public hearing was conducted to receive citizen comment regarding the request to rezone the parcel(s) commonly known as 1231 West Main Street, 201 Robbins Street, and 208 Morris Street from B-1 Local Business District to PUD Planned Unit Development District.

The following persons addressed the City Council regarding the rezoning request:

Roberto Larrivey, on behalf of the Applicant, addressed the City Council regarding the proposed development and changes made since his presentation to the Planning Commission.  He commented regarding the phases of demolition; refurbishing; rear building; and the 12 loft units.

Larry Doan, 302 Morris Street, inquired about the site plan as it relates to the garbage dumpster, lighting, trees, fencing, and snow placement.

Carol Hansen, 122 Robbins Street, commented regarding snow storage, cars parked in the parking spaces during snow removal activities.  She also inquired about emergency vehicles access to the back building.  She said that the neighbors are in support of the project.

Richard E. Crutts, Sr., 215 South Chestnut Street, commented about heated parking lots to assist in snow removal activities

Mike Cline, 411 North Chipman Street, questioned the number of parking spaces.

There was general Council discussion related to the relocation of Building B away from the railroad tracks, drain easements, snow storage, parking, project timeline and obstacles to completing the project.

Whereas, the Council, after due and legal notice, has met and heard all interested persons, motion by Councilperson Sumrack that the following ordinance, together with the Comprehensive Analysis and Letter of Supplemental Regulations as amended by the 10’ setback for Building B, be adopted:

ORDINANCE NO. 668

AN ORDINANCE TO AMEND SECTION 38-27 OF CHAPTER 38 OF THE CODE OF ORDINANCES OF THE CITY OF OWOSSO, MICHIGAN.

THE CITY OF OWOSSO ORDAINS:

SECTION 1.  That Section 38-27 of Chapter 38 of Article II of the Owosso City Code, District Boundaries, is hereby amended by changing the designation of the following lots and parcels of land designated in a zoning map of the City of Owosso, and referred to in said Section and made a part thereof, which said lots and parcels hereby intended to be redesignated are not described in body of said Section as in certain zone districts; said designation being as follows:

APPLICANTS:                                       Raymond Rau and David Jelinek

PROPERTY ADDRESSES:                    1231 WEST MAIN STREET; 201 ROBBINS STREET;
            208 MORRIS STREET

PROPOSED REZONING:                       FROM:              B-1       Local Business District
                                                            TO:                   PUD     Planned Unit Development District

PROPERTY DESCRIPTION:      

1231 WEST MAIN STREET:       Lots 7 & 12 & 13 (Exc S 15' Of Lot 13), Also Exc Com At Sw Cor Of Sd Lot 13, N'ly 15' Along W Ln Of Sd Lot- E'ly 60' Parallel With S Ln Of Sd Lot 13 To POB; N'ly 9.5', E'ly 105' M/L To E Ln Sd Lot 13', S'ly 14' M/L Alng E Ln Of Sd Lot 13 To A Pt Which Is 15' N'ly Of The Se Cor Of Sd Lot 13, W'ly 105' M/L To POB. Also Exc, Beg At A Point That Is S01*27'20"W, On W Ln Of Blk 14. 303.10' From Nw Cor Of Said Blk 14, Th S89*54'00"E, 49.26', Th S01*29'18"W, 23.09', Th S89*17'03"E, 1.60', Th S01*29'18"W, 60.99', Th N88*42'05"W, 50.81' To W Ln Of Blk 14, Th N01*27'20"E, 84.75' To POB. Assessor's Plat No. 3.  Also Lot 9 Exc W 154' Geo Thomas Add.

201 ROBBINS STREET: A Part Of Lots 12 & 13, Blk 14, City Assessor's Plat No. 3; Beg At A Point That Is S01*27'20"W, On W Ln Of Blk 14. 303.10' From Nw Cor Of Said Blk 14, Th S89*54'00"E, 49.26', Th S01*29'18"W, 23.09', Th S89*17'03"E, 1.60', Th S01*29'18"W, 60.99', Th N88*42'05"W, 50.81' To W Ln Of Blk 14, Th N01*27'20"E, 84.75' To POB.  .098 Acres M/L.  Subject To Esmt For Ingress And Egress.

208 MORRIS STREET:               W 154' Of Lot 9 Geo Thomas 3rd Add.

SECTION 2.  The changes made in the zoning in the lots and parcels of land hereinbefore described are hereby ordered to be redesignated on said map in accordance with this Ordinance.

SECTION 3.  This Ordinance shall take effect July 10, 2005.

Motion supported by Councilperson Owen.

Roll Call Vote.

AYES:              Councilpersons Horvath, Owen, Robertson, Sumrack, and Mayor Davis.

NAYS:              None.

ABSENT:          Mayor Pro-Tem Osika and Councilperson Ford.

SITE PLAN REVIEW -1231 West Main Street, 201 Robbins Street, and 208 Morris Street

The public hearing was conducted to receive citizen comment regarding review of the site plan for the Planned Unit Development at 1231 West Main Street, 201 Robbins Street, and 208 Morris Street. 

There were no public comments.

Roberto Larrivey, on behalf of the Applicant, presented the Site Plan for review.  The City Council reviewed the Site Plan documents.  Staff requested the following conditions for Site Plan approval:  1) snow storage shall not have the effect of storm water damming or drainage onto adjoining properties; 2) the drainage easement shall be redefined and relocated to avoid Building B; and 3) developer shall plant buffer vegetation along the north property line of 302 Morris Street if desired by the owner of the premises.

Motion by Councilperson Robertson to approve the Site Plan with the following three conditions: 1) snow storage shall not have the effect of storm water damming or drainage onto adjoining properties; 2) the drainage easement shall be redefined and relocated to avoid Building B; and 3) developer shall plant buffer vegetation along the north property line of 302 Morris Street if desired by the owner of the premises, and also relying on the three standards for approval of a site plan.

Motion supported by Councilperson Owen.

Roll Call Vote.

AYES:              Councilpersons Robertson, Owen, Sumrack, Horvath, and Mayor Davis.

NAYS:              None.

ABSENT:          Mayor Pro-Tem Osika and Councilperson Ford.

ORDINANCE REPEAL
 

The public hearing was conducted to receive citizen comment regarding proposed repeal of Division 2, Budget Stabilization Fund, of Article VI, Finance, of Chapter 2, Administration, of the Code of Ordinances of the City of Owosso.

Mayor Davis read a letter from Betty Coon, 1204 Palmer Street, commenting on her concerns about the elimination of the budget stabilization fund.

There were no other public comments.

CITIZEN COMMENTS

Dean Butler, Owosso Fire Department employee, commented regarding his displeasure at the return of Deputy Fire Chief Schaufele to his position. 

Paul Dinkins, 217 East King Street, commented regarding the Fire Department complaints.  He also commented about his background in the firefighting field.

Benjamin Butcher, IAFF Local 504 President, commented regarding the firefighters’ letter of allegations against Deputy Fire Chief Schaufele and their disappointment in the way the matter was handled.  He also commented that the Department is upset that Mr. West was fired this week.  He requested that an outside source re-do the investigative interviews conducted by Director of Public Safety Compeau.

Councilperson Sumrack asked that Mr. Dinkins be allowed to finish his comments.  Mr. Dinkins commented further about firefighters.

Mayor Davis commented regarding an invitation from the City of Corunna to participate in the 4^th of July parade.  He also commented about an all-cities softball fest on July 22^nd at Mitchell Fields in Corunna.

CONSENT AGENDA

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

Bid Award.  Accepted low bid from Kemiron for ferric chloride at $.419 per pound for the fiscal year of July 1, 2005 through June 30, 2006.    

Sole Source Purchase.  Waived bid irregularities and approved sole source purchase from Charmeuse for quicklime and small pebble quicklime in the amount of $106.57 per ton and $111.57 per ton respectively for the fiscal year of July 1, 2005 through June 30, 2006.    

Waive Bid Irregularities.  Waived bid irregularities and authorized staff to obtain spot quotations for sodium hypochlorite from authorized suppliers for bulk delivery to be made at 4 to 6 week intervals for the fiscal year of July 1, 2005 through June 30, 2006.

Contract Payment.  Authorized Final Payment to North American Dismantling in the amount of $42,000.00 for work completed on the Hotel Demolition Project.

Boards and Commissions Appointments.    Approved Mayoral appointment (*re-appointment) of the following: James Howe*, Downtown Development Authority, 06-30-2009; Randy Horton*, Zoning Board of Appeals. 06-30-2008; Amy Six-King (School Representative to replace Janet Drews); Richard Snow*, Planning Commission, 06-30-2008; Calvene Morel*, Building Board of Appeals, 06-30-2008; Michael Rohde, Building Board of Appeals, 06-30-2008; Richard Williams*, Building Authority, 06-30-2008; and Jamie Irish, Downtown Development Authority, 06-30-2009.

Traffic Control Order No. 1145.  Authorized Traffic Control Order No. 1145 for placement of stop signs in the new Osburn Lakes Subdivision as follows:

Westbound Moore Avenue at Gould Street

Eastbound Moore Avenue at Jackson Drive

Northbound Beech Street at Jackson Drive

Northbound Juniper Street at Jackson Drive

Northbound Bluestem Court at Jackson Drive

Northbound Holly Court at Jackson Drive

Warrant No. 313.  Accepted Warrant No. 313 as follows:

Motion supported by Councilperson Horvath.

Roll Call Vote.

AYES:                 Councilpersons Owen, Robertson, Sumrack, Horvath, and Mayor Davis.

NAYS:                 None.

ABSENT:             Mayor Pro-Tem Osika and Councilperson Ford.

ITEMS OF BUSINESS

FISCAL POLICY

City Manager Gregg G. Guetschow addressed the City Council regarding the intent of the proposed fiscal policy and the budget stabilization fund.  There was general Council discussion regarding the proposed policy.

Whereas, the Council, after due and legal notice, has met and heard all interested persons, motion by Councilperson Robertson that the following ordinance repeal and the amendment of R-33-96 Fund Balance Policy, be adopted:

ORDINANCE NO. 669

AN ORDINANCE TO REPEAL CHAPTER 2, ADMINISTRATION, ARTICLE VI, FINANCE, DIVISION 2, BUDGET STABILIZATION FUND, OF THE CODE OF ORDINANCES OF THE CITY OF OWOSSO, MICHIGAN.

THE CITY OF OWOSSO ORDAINS:

Section 1.  That Division 2, Budget Stabilization Fund of Article VI, Finance, of Chapter 2, Administration, of the Owosso City Code shall be and the same is hereby repealed.

Section 2.   This ordinance shall take effect July 10, 2005.

Section 3. This ordinance may be purchased or inspected in the City Clerk’s office Monday through Friday between the hours of 9:00 a.m. and 5:00 p.m.

RESOLUTION

WHEREAS, on October 21, 1996, the Owosso City Council adopted Resolution R-33-96 establishing a fund balance policy for the general fund that provided for maintaining an unreserved, undesignated fund balance equal to twenty percent of the current general fund operating budget, a designated reserve of $100,000 to be used for special assessment defaults related to environmentally contaminated property, and a designated reserve of $500,000 to be used to advance funds for economic development projects; and

WHEREAS, the reasons for adopting Resolution R-36-96 as stated in the resolution are still valid but changes in state-local fiscal relations and in local circumstances warrant further expansion of funds reserved for specific purposes; and

WHEREAS, the City Council has adopted Ordinance No. 669 that repeals the ordinance through which the City established and maintained a budget stabilization fund; and

WHEREAS, Public Act 177 of 1943 permits municipalities to establish public improvement funds for the purpose of appropriating, providing for, setting aside and accumulating moneys to be used for acquiring, constructing, extending, altering, repairing or equipping public improvements or public buildings; and

WHEREAS, the City will be making payments for costs associated with the construction of the Owosso Drain; and

WHEREAS, the myriad factors affecting the City’s budget warrant a fiscal policy that provides for the prudent use of undesignated, unreserved funds and funds that were formerly included within the City’s budget stabilization fund so as to meet the need for funds for the Owosso Drain payments and future capital improvements as well as for unforeseen emergencies; and

NOW, THEREFORE, BE IT RESOLVED, that Resolution R-33-96 is hereby amended to provide that the unreserved, undesignated fund balance in the general fund shall be maintained at an amount equal to twenty-five percent of the average of general fund expenditures based on a three-year moving average; provided, however, that the amount of this fund may be reduced upon Council approval during any fiscal year in order to meet the need for continuing funding for City operations when unforeseen emergencies such as natural disasters, reduction in funds from other revenue sources, and the like occur; and

BE IT FURTHER RESOLVED, that an additional designated reserve is hereby established in the initial amount of $282,785 in order to provide for payments associated with the Owosso Drain project; and

BE IT FURTHER RESOLVED, that, pursuant to Public Act 177 of 1943, there is hereby established a public improvement fund in the initial amount of $844,628 to be used, subject to Council approval, for the purposes provided in the act.

Motion supported by Councilperson Horvath.

Roll Call Vote.

AYES:              Councilpersons Robertson, Owen, Horvath, Sumrack, and Mayor Davis.

NAYS:              None.

ABSENT:          Mayor Pro-Tem Osika and Councilperson Ford.

*Clerk’s Note:  For reference purposes, the wording of the original Resolution R-33-96, Fund Balance Policy, is included in these minutes as follows:

Resolution R-33-96 Fund Balance Policy

WHEREAS, it is the intent of the City Council to establish a fund balance for the General Fund; and

WHEREAS, the City Council has discussed and deliberated numerous issues related to the proper amount of fund balance, balancing the interests of tax burden with the ability to provide quality public services without interruption given the States’ dominant control of revenues; and

WHEREAS, the City Council also recognizes a legal or moral obligation for indebtedness of other funds if revenues are insufficient to pay bondholders, and

WHEREAS, the City Council wants to establish a revolving fund to invest in the future of the City by inducing private development, making public improvements and leveraging grant funds,

NOW, THEREFORE, BE IT RESOLVED that the Owosso City Council designates $100,000 to be reserved for special assessment defaults related to environmentally contaminated property that may not return to productive use, recognizing any revenue shortfall in the special assessment fund becomes a first budget obligation of the General Fund, and

BE IT FURTHER RESOLVED that the Owosso City Council designates $500,000 to advance for development projects to attract and retain private investments vital to the economic well-being of the City, and

BE IT FURTHER RESOLVED that the Owosso City Council establishes a policy to maintain an unreserved, undesignated fund balance equal to twenty percent of the current General Fund operating budget to ensure the delivery of services without immediate interruption due to the unforeseen loss of revenues beyond control of the City; to provide evidence to credit analysis of prudent financial management as fiduciaries of the City in order to maintain a Moody’s “A” bond rating.

CITY BUDGET AMENDMENT

Motion by Councilperson Owen to adopt the 2004-2005 Amended Budget as follows:

Motion supported by Councilperson Sumrack.

Roll Call Vote.

AYES:              Councilpersons Horvath, Owen, Sumrack, Robertson, and Mayor Davis.

NAYS:              None.

ABSENT:          Mayor Pro-Tem Osika and Councilperson Ford.

COMMUNICATIONS

Michigan Municipal League.  Fax regarding revenue sharing.
Gregg G. Guetschow, City Manager.  Water bill insert topics.
Michael T. Compeau, Public Safety Director.  MAGNET 2004 Annual Report.
John F. Archer, Building Official.  May 2005 Building Department Report.
John F. Archer, Building Official.  May 2005 Code Violations Report.
Michael T. Compeau, Public Safety Director.  May 2005 Police Department Report.
Michael T. Compeau, Public Safety Director.  May 2005 Fire Department Report.
Shiawassee District Library Board.  Minutes of Meeting of April 27, 2005.

CITIZEN COMMENTS

Burton Fox, 216 East Oliver Street, commented regarding the Fire Department.  He commented further regarding the handling of the issue and the use of an outside source to investigate. 

Richard E. Crutts, Sr., 215 South Chestnut Street, commented regarding the use of an outside source to investigate the Fire Department complaints.  He also commented that he has known Deputy Fire Chief Schaufele for years and was offended by comments made by the firefighters about Mr. Schaufele.

Mayor Davis commented about Eddie Urban’s recent 25^th wedding anniversary celebration.

Councilperson Sumrack asked what needs to be done to address the Fire Department issue.  City Manager Guetschow commented regarding employee disputes.  He expressed concerns about whether further investigation was needed.  City Manager Guetschow suggested seeking legal counsel for a method for protecting employee privacy and insuring that the investigation was done correctly.  He will report back to the City Council at the next meeting.

ADJOURNMENT

Motion by Councilperson Owen for adjournment at 8:51 p.m., supported by Councilperson Sumrack and concurred in by unanimous vote.
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John C.M. Davis, Mayor

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Gail L. Schultz, City Clerk