CITY OF MASON

REGULAR CITY COUNCIL MEETING

MINUTES OF DECEMBER 1, 2003

 

 

Whipple called the meeting to order at 7:30 p.m. in the Council Chambers at 201 W. Ash Street, Mason, Michigan.  Clark led the Pledge of Allegiance and offered the invocation.

 

Present:          Councilmembers: Bruno, Clark, Naeyaert, Preadmore, Helbig, Johnson, Whipple

Also present: Martin Colburn, City Administrator

Eric Smith, Asst. Finance Director

Dennis McGinty, City Attorney

Joe Dean, DPW Director

Deborah Stein, Deputy City Clerk

 

 

APPROVAL OF MINUTES - REGULAR COUNCIL MEETING: November 17, 2003

MOTION by Helbig, seconded by Preadmore.

To approve the Minutes of November 17, 2003 as corrected.

MOTION APPROVED UNANIMOUSLY

 

 

APPROVAL OF BILLS

MOTION by Preadmore, seconded by Johnson.

To approve the payment of bills in the amount of $106,093.90 as submitted.

MOTION APPROVED UNANIMOUSLY

 

 

PEOPLE FROM THE FLOOR

Larry Briggs, volunteer on various city board and commissions, thanked the Council for the holiday fruit basket that he and board and commission volunteers received from Council.

 

REGULAR BUSINESS

It was discussed to hold an executive session at the end of the meeting to consider the purchase or lease of real property to lessen the time adjourned during the meeting.

 

MOTION by Helbig, seconded by Preadmore,

To amend the agenda by moving “Item No. 7(A) Executive Session – To Consider the Purchase of or Lease of Real Property,” to Item No. 14, striking “Adjournment.”

MOTION APPROVED UNANIMOUSLY

 

 

Executive Session – Attorney/Client Privileged Communication

MOTION by Clark, seconded by Preadmore,

To adjourn to executive session to discuss an attorney/client privileged communication.

ROLL CALL VOTE: Yes (7) Bruno, Clark, Naeyaert, Preadmore, Helbig,                                                           Johnson, Whipple

                                       No (0)

MOTION APPROVED UNANIMOUSLY

 

The meeting adjourned into executive session at 7:39 p.m. and reconvened at 8:15 p.m.

 

 

Resolution No. 2003-61 Notice of Intent to Issue Water Supply and Sewage Disposal System Revenue Bonds

Resolution No. 2003-61 was introduced by Bruno and seconded by Clark at the November 17^th meeting and deferred to December 1, 2003. 

 

Discussion was held on additional information provided by staff regarding bonding versus borrowing from the restricted water and sewer fund balance to finance public works projects.  Helbig commented that in the next two to five years there are expensive city projects planned and questioned whether it would be better to bond for the current projects while the interest rate is so favorable.  Whipple commented that if it were too expensive to borrow at that time the fund could be paid back in a short enough time period that fund balance would be in place to borrow from it again.  However, if the budget couldn’t accommodate the project the fee schedule could be adjusted.

 

CITY OF MASON

CITY COUNCIL RESOLUTION NO. 2003-61

NOTICE OF INTENT TO ISSUE

WATER SUPPLY AND SEWAGE DISPOSAL SYSTEM REVENUE BONDS

 

December 1, 2003

 

A regular meeting of the City Council of the City of Mason, Ingham County, Michigan (the ACity@), was held in the City Council Chambers, 201 West Ash Street, Mason, Michigan, on Monday, the 1st  day of December, 2003, at 7:30 o=clock, p.m.

 

The meeting was called to order at 7:30 o=clock, p.m. by Mayor Whipple

Present:                 Council Members - Bruno, Clark, Naeyaert, Preadmore, Helbig,                                        Johnson, Whipple

Absent:  Council Members - None

 

WHEREAS, the City Council has determined that it will be necessary to issue bonds of the City for the purpose of defraying a portion of the cost of certain water supply and sewage disposal system improvements, including, but not limited to: the acquisition and construction of certain water supply and sewage disposal system improvements along Okemos Road within the City, including, but not limited to, installing and replacing watermains and related equipment, and installing and replacing sanitary sewer mains, pipes, and related equipment; the acquisition and construction of an elevated water storage tank and related water mains, equipment, improvements and appurtenances; the acquisition and construction of sludge storage tank and related equipment, improvements and appurtenances; the acquisition and installation of water meters and related equipment, improvements and appurtenances; and the acquisition and installation of a well monitoring system and related equipment, improvements and appurtenances (the AProject@) in the City; and

 

WHEREAS, the cost of the Project is estimated at Two Million Four Hundred Ninety-Five Thousand Dollars ($2,495,000), including all costs of construction, engineering contingencies, legal and financing costs, and other costs related to the Project and the issuance of bonds therefor; and

 

WHEREAS, the sum of not to exceed Two Million Seventy-Five Thousand Dollars ($2,075,000) is required to be financed by the issuance of revenue bonds (the ABonds@) for the Project; and

WHEREAS, Section 33 of the Revenue Bond Act, Act 94, Public Acts of Michigan, 1933, as amended (the AAct@), requires the publication of a notice of intent to issue the bonds necessary to produce the monies required to finance a portion of the cost of the Project; and

WHEREAS, the City Council now desires to authorize and approve the required Notice of Intent to Issue the Bonds, and the publication thereof; and

 

WHEREAS, in order to proceed with the issuance of the Bonds, it may also be necessary for the City to obtain approval from the Michigan Department of Treasury; and

WHEREAS, the City may wish to reimburse certain expenditures made or to be made from General Fund, Water and Sewer Fund, or other fund(s) of the City in advance of issuance of the Bonds.

 

NOW, THEREFORE, BE IT RESOLVED THAT:

 

1.             The City Clerk and/or Finance Director/Treasurer, or a designee thereof, shall cause the following notice to be published in the Community News, Mason, Michigan, a newspaper of general circulation within the City of Mason, as a display ad of at least 1/4 page in size:

 

                                                 NOTICE OF INTENT TO ISSUE REVENUE BONDS

 

TO THE TAXPAYERS AND ELECTORS OF THE CITY OF MASON

AND THE USERS OF THE CITY'S WATER SUPPLY AND SEWAGE DISPOSAL SYSTEM AND NOTICE OF RIGHT OF REFERENDUM

 

TAKE NOTICE THAT the City Council of the City of Mason, Ingham County, Michigan, intends to authorize the issuance pursuant to the Revenue Bond Act, Act 94, Public Acts of Michigan, 1933, as amended, of NOT TO EXCEED Two Million Seventy-Five Thousand Dollars ($2,075,000) City of Mason Water Supply and Sewage Disposal System Revenue Bonds, Series 2004 (the "Revenue Bonds"), for the purpose of defraying a portion of the cost of certain improvements to the City=s water supply and sewage disposal system, including, but not limited to: the acquisition and construction of certain water supply and sewage disposal system improvements along Okemos Road within the City, including, but not limited to, installing and replacing watermains and related equipment, and installing and replacing sanitary sewer mains, pipes, and related equipment; the acquisition and construction of an elevated water storage tank and related water mains, equipment, improvements and appurtenances; the acquisition and construction of sludge storage tank and related equipment, improvements and appurtenances; the acquisition and installation of water meters and related equipment, improvements and appurtenances; and the acquisition and installation of a well monitoring system and related equipment, improvements and appurtenances.  The Revenue Bonds will be payable primarily from revenues received from rates and charges to users of the City=s water supply and sewage disposal system and will be payable in not more than twenty (20) annual installments at a rate of interest to be determined upon sale of the Revenue Bonds not to exceed six percent (6.0%), payable on the unpaid principal balance from time to time remaining outstanding on the Revenue Bonds.

 

The total cost of the water supply and sewage disposal system improvements is estimated to be Two Million Four Hundred Ninety-Five Thousand Dollars ($2,495,000), a portion of which cost is to be paid from the issuance of the Revenue Bonds.

 

                                                    SOURCE OF PAYMENT OF REVENUE BONDS

 

THE PRINCIPAL OF AND INTEREST ON THE REVENUE BONDS shall be payable primarily from the net revenues derived from the operation of the water supply and sewage disposal system remaining after payment of operation and maintenance expenses.  Said revenues consist of rates and charges for services, including connection fees, which rates and charges are required to be maintained and increased from time to time in order to provide sufficient revenues to meet expenses for operating and maintaining the system, anticipated principal of and interest on the Revenue Bonds and to provide reserves for payment thereof.  A schedule of said rates and charges is on file in the office of the City Clerk.

 

ADDITIONAL SECURITY - FULL FAITH AND CREDIT

 

In the event that the Revenue Bonds are sold to the Michigan Municipal Bond Authority, and/or in the event that certain state or federal grants of 25% of project costs are received, the City is authorized pursuant to the aforesaid Revenue Bond Act to pledge its full faith and credit for the repayment of the Revenue Bonds.  In this event, the City would be authorized within its constitutional, statutory, and charter tax rate limitations to levy such taxes or advance such funds from the general funds of the City as might be necessary to prevent or cure any default in the repayment of the Revenue Bonds resulting from an insufficiency of revenue derived from the operation of the water supply and sewage disposal system.  Although it is not anticipated that the City will ever be required to advance such funds, the City would, in the event of an advance, be entitled to be repaid from the next water and sewer revenues available after correction of any default.

 

                                                            NOTICE OF RIGHT OF REFERENDUM

 

THIS NOTICE is given pursuant to the requirements of Section 33, Act 94, PA 1933, as amended.  If within forty-five (45) days from the publication of this NOTICE OF INTENT to issue Revenue Bonds a PETITION signed by not less than TEN PERCENT (10%) OF THE REGISTERED ELECTORS residing within the limits of the City of Mason shall have been filed with the City Clerk requesting a REFERENDUM on the question of the issuance of the Revenue Bonds, then the same shall not be issued until approved by the vote of the majority of the electors of the City qualified to vote and voting thereon at a general or special election.  The current number of registered electors in the City is 5,084.

 

Further information regarding the water supply and sewage disposal system improvement project is available at the City Clerk=s offices, 201 West Ash Street, Mason, Michigan 48854.

 

_____________________________

Martin A. Colburn, City Clerk

City of Mason,

Ingham County, Michigan

 

2.             The foregoing notice and method of publication thereof are hereby determined to be adequate to notify the residents of the City of their referendum rights and of the nature of the debt obligations proposed to be issued, pursuant to the Revenue Bond Act, Act 94, Public Acts of Michigan, 1933, as amended, and/or the Revised Municipal Finance Act, Act 34, Public Acts of Michigan, 2001, as amended.

 

3.                   Pursuant to the provisions of the Revised Municipal Finance Act, Act 34, Public Acts of Michigan, 2001, as amended, the City Council hereby resolves to, if necessary, submit to the Michigan Department of Treasury a municipal finance qualifying statement prior to the issuance of the Bonds, or such other application as may be required by the Michigan Department of Treasury, if necessary, and the City Administrator or Finance Director/Treasurer, or a designee thereof, is hereby authorized to sign the same and to pay any fees associated therewith.

 

4.                   To the extent advances to pay Project costs have been or are required to be made from the City's General Fund, Water and Sewer Fund, or other fund(s), the City shall reimburse the General Fund, Water and Sewer Fund, or other fund(s) not earlier than the date on which the expenses are paid and not later than the latter of:

 

(a)           the date that is eighteen (18) months after the expenses are paid, or

 

(b)           the date the Project is placed in service or abandoned, but in no event more than three (3) years after the expenses are paid.

5.             All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be, and the same are, hereby rescinded.     

 

Yes: (0)

Nays:                                                                                      No: (7) Bruno, Clark, Naeyaert, Preadmore, Helbig, Johnson, Whipple

Absent:                                                                                  RESOLUTION FAILED.

 

MOTION by Johnson, seconded by Bruno,

To direct the City Administrator to prepare a resolution for the next meeting that authorizes borrowing two million dollars ($2,000,000) from the restricted sewer fund balance to pay for the new water tower on the north side of town, the SCADA System, the new water meters, and Okemos Street sewer and water improvements to be paid back to the restricted fund at a interest rate of three percent (3%) per annum over seven (7) years.

MOTION APPROVED UNANIMOUSLY

 

Resolution No. 2003-63 Water & Sewer Base Connection Fees

Resolution No. 2003-63 was introduced by Helbig and seconded by Naeyaert at the November 3, 2003 meeting and deferred to December 1, 2003. 

 

MOTION by Helbig, seconded by Preadmore,

To amend Resolution No. 2003-63 by striking $3,400 from the per residential equivalent unit charge for Sanitary Sewer and inserting $2,300.

 

ROLL CALL VOTE: Yes: (4) Naeyaert, Preadmore, Helbig, Whipple

                                             No: (3) Bruno, Clark, Johnson

            MOTION APPROVED

 

MOTION by Bruno, seconded by Clark,

To amend Resolution No. 2003-63 by striking “$1,750” for the ¾ -inch service lead and “$1,750” for each additional ¼-inch there after for water service and insert “$1,200” in both places; also striking the word “be” and insert “remain”.

MOTION APPROVED UNANIMOUSLY

 

Discussion was held to set March 1, 2004 as the effective date for the base connection fee schedule.  Johnson suggested that July 1, 2004 would be a more reasonable period of adjustment and incentive for developers and advantageous for the city.

 

MOTION by Bruno, seconded by Preadmore,

To amend Resolution No. 2003-63 to make the base connection fees for water and sewer effective March 1, 2004.

VOTE: Yes: (6) Bruno, Clark, Naeyaert, Preadmore, Helbig, Whipple

                        No: (1) Johnson

MOTION APPROVED

 

CITY OF MASON

                                                  CITY COUNCIL RESOLUTION NO. 2003-63

                                             WATER AND SEWER BASE CONNECTION FEES

 

                                                                       December 1, 2003

 

WHEREAS, the Water and Sewer Rate Study Committee met and reviewed the base connection fees for sewer and water connections, and the method by which the fees should be calculated; and

WHEREAS, the Committee recommends that the base connection fees be calculated by dividing the current replacement value of the water and sanitary sewer systems, minus any 8-inch and smaller, water mains and sewer collectors, by the current equivalent user factor; and

WHEREAS, the base connection fees for water and sanitary sewer and the commodity rates are to be reviewed annually by the Committee;

NOW THEREFORE BE IT RESOLVED, that the following schedule for the base connection fees, is hereby established:

$                     Sanitary Sewer will be $2,300 per residential equivalent unit.

$                     Water will remain $1,200 per 3/4-inch service lead, plus $1,200 for each additional 1/4-inch increase thereafter.

BE IT FURTHER RESOLVED, that the effective date of the base connection fee schedule shall be March 1, 2004

VOTE: Yes (6) Bruno, Clark, Naeyaert, Preadmore, Helbig, Whipple

             No (1) Johnson

            RESOLUTION APPROVED

 

 

Bid – Farm Lease

A bid was let for the city owned 56.77 acres located at the northwest corner of Kipp Road and Dexter Trail, for farm purposes.  The current three year lease expires December 31, 2003.  Four bids were received.  Steven Lott of 916 Lamb Road submitted the high bid in the amount of $15,600.

 

MOTION by Preadmore, seconded by Helbig.

To accept the bid of Steven Lott in the amount of $15,600 for a three-year lease of the city owned 56.77 acres located at the corner of Kipp Road and Dexter Trail for the years 2004, 2005, and 2006.

MOTION APPROVED UNANIMOUSLY

 

 

UNFINISHED BUSINESS