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Report to Village of Bear Lake Council:June 18, meeting of the Bear Lake Pleasanton Area Utilities Authority.
We presented a written request to correct serious errors in the April minutes. (see next attachment) Upon an objection that you cannot correct previously approved minutes a motion was made, seconded and approved to attach the written request to the June Minutes and note that in the minutes.
The Secretary requested we table acceptance of the May minutes until July to give him time to review our written request listing corrections to the May minutes. There was no motion or second to that.
An objection was made to the notation that Mr. Dennis Nieman, at the May meeting, stated that as each government had to vote to enter into a financing contract with the Utility Authority, and that in so doing had to pledge the good faith of its general fund, Village of Bear Lake voters could participate in both the gathering of signatures and any referendum vote as we are taxpayers to both the Village and Township general fund and we are registered voters of Bear Lake Township. (We would not be able to participate in either action for the establishment of the Township Special Assessment District however.)
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Finance: A Treasurer’s Report was presented for the BLPL Sewer Feasibility Board. It showed an ending balance of $431.73 and 3 checks being distributed to each entity - 2 coming back in as transfers from BL Township and Pleasanton Township. As there are 2 large outstanding bills a question was raised what the term ‘sewer bills’ as used in the report meant and which were Prein Newhof and which were Attorney Wilson’s. I noted that in the April Treasurer’s Report Prein Newhof’s had been separated out to read $21,050.17 , and $4,469.80 for a total of $25,519.97 - with no additional payment being noted on the May Report. Apparently another bill is outsanding for Attorney Wilson of $960 but a copy was not available.
Treasurer Don Shreve had the necessary Resolution to open a bank account and it was necessary to name the authorizing officers and their duties. We quoted the Articles of Incorporation which state that all checks must be signed by both the Chair and Treasurer with Secretary as alternate for the Treasurer. It was agreed and passed.
The issue of a bond was not addressed.
The issue of the Authority having no budget was then addressed.
Mr. Alkire raised the issue of whether the Board wanted to pay itself a salary - after some discussion we pointed out that the statute this Board was formed under specifically prohibits that and is so stated in the Articles of Incorporation. It was agreed that each government could vote to make a ‘per meeting’ payment to its own members from its own funds.
Don Shreve presented a limited 2 line item budget with the reference that he didn’t see the need to have a ‘budget with lots of blank spaces’. I handed out an alternate version, extracted from an actual currently operating Utility Authority - see attached - It was then noted the size of the outstanding bills ( $12,745.18 to Prein Newhof, $960 to Mr. Wilson) It was also noted that any budget must be approved by each entity before it is adopted by the Authority and no bills can be paid until then and then not until there is cash to cover them.
Mr. Wilson stated he estimated his bills for the remainder of this year at @$5000. Therefore a motion was made to send a 3 line item budget of $13,000 for engineering, $5000 for legal and $1000 for general administration to each entity for approval. All voted yes except Dendra.
There is still an unaccounted issue of payment for a listed Environmental Assessment at $5000 which is listed as part of the application and part of Prein newhof’s prelimiary Study - in addition to the $37,500 which was bid. There is also an outstanding obligation of 3 months salary to the previous Sewer Board members.
There was an estimate made of what our third will be but I specifically asked that no bill be sent until we approve the budget which should be placed on our July Agenda for discussion.
We have been assured that Bear Lake Township clerk will provide copies of all the itemized invoices associated with the past sewer board.
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The issue of the Engineering Contract, being presented for our approval, was discussed but Mr. Wilson stated he had not had time to review it. I noted we had had our Attorney Hyrns review it and we made the following request: that because there are provisions for the engineer to assess costs upon termination and because of the speculative nature of the project scope and funding, where ‘date of commencement’ is listed it be filled in as “Upon an offer being received from USDA RD and accepted by each entity”. Mr. Wilson said he would be happy to receive suggestions from Attorney Hyrns.
It was our understanding, from the documents of the RD application, that this Engineering contract had to be attached? But Mr. Wilson stated the application had gone in already. He noted that Prein Newhof cannot find the copy of our FY2002 Audit which was mailed by the Clerk over 2 weeks ago.
Mr. Wilson relayed a request from Prein Newhof that we authorize them to begin mapping the SAD’s - but we pointed out that each Clerk has the parcel and property descriptions and can do that at no addtional cost when the time arrives. (Prein Newhof’s stated rate for this as part of prelimary work is $42,500)
We then asked the question if the RD application was made for funds available this FY2003 or for FY2004? Mr. Wilson stated it was submitted in May so was for this current FY2003 - whereupon we bought to the meetings attention the actual level of funding released by RD for use in projects within the State of MI - GUARANTEED LOANS $1,828,000 - DIRECT LOANS $31,531,000 - GRANTS $16,780,000.
We are requesting $10.863m so it was noted our chances of funding are slim this year with no guarantee the funding situation will improve next.
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There were over 20 individuals present, at least one who had no prior knowledge that this sewer system was being proposed. We pointed out that the meeting dates notices are posted at each municipal office, at the Library and the Post Office, that the Engineering Study is available on CD ROM and as the printed version, of both the draft and Final, at the Library and as a full download from the Village web site and that from now on the Minutes will also be published on our web site. Further, anyone may request written notification of meeting changes and is free to do so via email to clerk@bearlakemichigan.org. (It is a suggestion that we create a bulletin Board on the web site to foster discussion.)
Don Shreve asked for a clarification that any of the entities was free to pursue other grant sources - the answer is yes, and the Village has actively been researching alternative sources of funding and alternative methods of delivering the sanitary services we acknowledge we need, as a back up and interim solution should the RD application fail.
When asked about the possibility of having a weekend public meeting Mr. Alkire stated that would not happen until the offer had been received and accepted from USDA RD. We pointed out that any interested individuals could hold their own Town Hall meeting and ask us to come to discuss the project. We asked if each Township had invited public comment on the design and scope of the system prior to instructing the engineers - the answer was no.
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There still seemed to be some confusion in the audience as to who was ‘in’ and who was ‘out’ of the service area or at what point they had the option to ask to be included or petition to be excluded.
For the Village, this is only an issue where we touch the Township boundary on Russell and Potter - we also noted that sewer lines cannot run within proximity to our water wells.
The actual referendum process for both a) initial Notice of Intent to enter into a contract AND b) the Notice of Intent to form a Special Assessment District was discussed in some detail. The actual ACT MUNICIPAL SEWAGE AND WATER SUPPLY SYSTEMS Act 233 of 1955 is quite clear on the process:
124.288 Municipality desiring to contract with authority; authorization; resolution; notice; contents; execution and delivery of contract; effective date; petition requesting referendum upon contract; voting; effect of action taken prior to effective date of subsection (2); special election; verification of petition signatures; number of registered electors.
Sec. 8.
(1) A municipality desiring to enter into a contract with the authority under section 7 shall authorize, by resolution of its governing body, the execution of the contract. After the adoption of the resolution, a notice of the resolution shall be published in a newspaper of general publication in the municipality, which notice shall state:
(a) That the governing body has adopted a resolution authorizing execution of the contract.
(b) The purpose of the contract.
(c) The source of payment for the contractual obligation.
(d) The right of referendum on the contract.
(e) Other information as the governing body determines to be necessary to adequately inform all interested persons of the nature of the obligation.
The contract is not subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
(2) The contract may be executed and delivered by the municipality upon approval by its governing body without a vote of the electors on the contract, but the contract shall not become effective until the expiration of 45 days after the date of publication of the notice. If within the 45-day period a petition signed by not less than 10% or 15,000, whichever is less, of the registered electors residing within the limits of the municipality is filed with the clerk of the municipality requesting a referendum upon the contract, the contract shall not become effective until approved by the vote of a majority of the electors of the municipality qualified to vote and voting on the question at a general or special election.
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At that point the Village would have to define our SAD - Special Assessment District. The manner in which we do that is governed by the General Law Village Act which calls for a differing mechanism than that of the Townships. (See notes on the GVA at the end of these notes) The Village Clerk needs to determine IF we currently have an ordinance to “provide special assessment procedure”? If not we will need to draft, approve and publish one, under the terms of the GVA, before we can proceed.
At the May meeting, Bonding Attorney Dennis Nieman pointed that out.
He said: If the referendum vote is favorable - or IF there isn't one at all - we would proceed to the next step - which is to formally establish each unit of governments Special Assessment District for sewer service. At THAT point another Public Hearing is held within 60-90 days to hear comments/ complaints from those specifically included only WITHIN the SAD, and only those. If 20% of those within each and any of the SAD's sign a legal petition for a referendum vote then THOSE affected will be polled in each and any SAD only. 51% in favor of the SAD in each unit is necessary to proceed.
When it was asked how who gets to vote is determined - is it by linear frontage, by property owner, by total square footage - he stated it was up to us to decide a fair method of polling but that that was customarily by the frontage footage.
IN EITHER EVENT, IN EITHER OF THE TWO OPPORTUNITIES TO PRESENT A PETITION, IF 51% OF ELIGIBLE SIGNATURES ARE PRESENTED AS OPPOSED TO THE CONTRACT BEING OFFERED THEN THE ISSUE DIES.
The meeting ended with us presenting the report we gave to last Village Council meeting listing how our questions and clarifications of policy and procedures were answered at that meeting. As it is now part of our official record we asked it be attached to the June meeting minutes.
Next meeting will be July 15, 2003
We will send a written reminder requesting we receive a copy of the June minutes within 8 business days and a copy of the Agenda within 3 days of the meeting for forwarding to our Clerk to present for public examination. Glen audio taped this meeting. We have not thus far received the requested copy audio tape of the May meeting.
Respectfully. Dendra and Glen.
THE GENERAL LAW VILLAGE ACT (EXCERPT)
Act 3 of 1895
69.5 Authority of council to levy taxes; street and other local improvements; special assessment proceeds.
Sec. 5.
The council may raise by special assessment upon the lands in sewer districts and special assessment districts, for the purpose of defraying the cost and expense of grading, paving, and graveling streets, and for constructing drains and sewers, and for making other local improvements, charged upon the lands in the district in proportion to frontage or benefits, such sums as they shall consider necessary to defray the costs of the improvements.
History: 1895, Act 3, Imd. Eff. Feb. 19, 1895 ;--CL 1897, 2856 ;--CL 1915, 2730 ;--CL 1929, 1639 ;--CL 1948, 69.5 ;--Am. 1969, Act 58, Imd. Eff. July 21, 1969 ;--Am. 1998, Act 254, Imd. Eff. July 13, 1998 ;--Am. 2002, Act 276, Imd. Eff. May 9, 2002 .
68.31 Expense of local public improvement or repair; special assessments.
Sec. 31.
The council of the village by adopting a resolution pursuant to section 5 of chapter V may determine that the whole or a part of the expense of a local public improvement or repair shall be defrayed by special assessments upon the property specially benefited.
History: Add. 1974, Act 4, Imd. Eff. Jan. 30, 1974 ;--Am. 1998, Act 254, Imd. Eff. July 13, 1998 .
68.32 Ordinance providing special assessment procedure; contents; additional assessments; disposition of excess assessments; payment of future due installments.
Sec. 32.
The complete special assessment procedure to be used, including the time when special assessments may be levied; the kinds of local public improvements for which a hearing is required on the resolution levying the special assessments; the preparing of plans and specifications; estimated costs; the preparation, hearing, and correction of the special assessment roll; the collection of special assessments; the assessment of single lots or parcels; and any other matters concerning the making of improvements by the special assessment method, shall be provided by ordinance. The ordinance shall authorize additional assessments, if the prior assessment proves insufficient to pay for the improvement or is determined to be invalid, in whole or in part, and shall provide for the refund of excess assessments; however, if the excess is less than 5% of total cost as defined by ordinance, it may be placed in the general fund of the village. The payment of future due installments of a special assessment against a parcel of land may be made at any time in full, with interest accrued to the due date of the next installment.
History: Add. 1974, Act 4, Imd. Eff. Jan. 30, 1974 ;--Am. 1978, Act 29, Imd. Eff. Feb. 24, 1978 .
68.34 Action to contest collection of special assessment; illegal assessment roll.
Sec. 34.
An action to contest the collection of a special assessment shall be instituted under the tax tribunal act, 1973 PA 186, MCL 205.701 to 205.779.
History: Add. 1974, Act 4, Imd. Eff. Jan. 30, 1974 ;--Am. 1998, Act 254, Imd. Eff. July 13, 1998 .
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