Township Refuses to Waive Civic Center's Water Usage

IRONWOOD, MI - Tuesday, January 27, 2009 - Monday night's City Commission meeting was preceded by three public hearings: (1) a hearing to hear comment on a dimensional variance request by E. Jack & Helen M. Fashbaugh, 203 East Gogebic Street to build a 10 foot addition onto the eastern portion of their home; (2) a public hearing to hear comment on an ordinance to regulate outdoor furnaces; and (3) a public hearing to repeal the existing Planning Commission Ordinance and replace it with a newly crafted version of the same.

DIMENSIONAL VARIANCE REQUEST

At 5:00 PM Mayor Bruce Noren opened the first public hearing. Community Development Director Dan Petersen gave a brief address to the Commmission to describe the addition E. Jack and Helen M. Fashbaugh were proposing to their Gogebic Street home. According to Petersen, there were no written objections received and one letter of support from the Fashbaugh's next door neighbor regarding the addition. There were no public endorsements or objections to the project either. Commissioner Tom Laabs asked City Assessor/Building Inspector Dennis Hewitt when a building permit for such a project expires. Hewitt told Laabs that permits for this type of remodeling generally were issued for a one year period. Noren asked the Fashbaughs if they had any comments and E. Jack Fashbaugh told the Commission that the project would be an asset to the neighborhood.

The City Commission unanimously approved the Dimensional Variance and closed the public hearing.

OUTDOOR FURNANCES

At 5:05 PM Mayor Bruce Noren called the second public hearing to order. Dan Petersen explained to the Commission that the second hearing was to hear comment relative to the proposed new ordinance to regulate outdoor furnaces. None of the Commissioners had any questions or comments with regards to the heavily studied proposal. The only member of the public to voice any opinion was Brian Stella, Sr. who praised the City for re-examining and making changes to the ordinance that were fair and proper. There was no further action on the matter and the Commission closed the hearing.

PLANNING COMMISSION ORDINANCE

At 5:20 PM Noren called the third and final public hearing to order. Petersen explained that the changes to the Planning Commission Ordinance as proposed were a combination of new requirements from the State (the Enabling Acts) and changes on a local level that reduced the number of Planning Commissioners from the current nine to seven voting members. Petersen explained that reducing the number will help to avoid quorum issues and problems with getting people to apply. This reporter asked a question about the ordinance as proposed. Currently the City simply advertises for applications when there is an opening on the Planning Commission. According to the ordinance, as proposed, nominations would first be sought from different segments of the city -- businesses, organizations, etc. Then those nominations would be considered by the Mayor and the Commission. There was no action taken on the proposal and the hearing was closed.

REGULAR MEETING

At 5:30 PM Mayor Noren called the regular meeting of the Commission to order. Following the opening prayer and the Pledge of Allegiance, City Clerk Karen Gullan called roll. All five of the City Commissioners were present: Commissioner Bob Burchell; Commissioner Tom Laabs; Mayor Bruce Noren; Commissioner Gemma Lamb; and Commissioner Suzanne Toth. City staff attending the meeting included: Utilities Director Bob Tervonen; City Assessor/Bulding Inspector Dennis Hewitt; Department of Public Works Foreman Joe Madgziak; Finance Director Julie Frederickson; Ironwood Public Safety Department Director Bob Erspamer; Community Development Director Dan Petersen; City Attorney A. Dennis Cossi; City Clerk Karen Gullan; and City Manager Scott Erickson. Representing the press at last night's meeting were Arvo Toolanen and Lou Bonagura from IronwoodInfo.com; Ralph Ansami reporter from the Daily Globe; and Steve Frank and yours truly from the Superior Chronicle.

CONSENT AGENDA

The first order of business was to either approve or disapprove of the Consent Agenda. The Commission unanimously agreed to approve the Consent Agenda, therefore taking the following actions:

  • Approved the January 12, 2009 Regular City Commission Meeting Minutes
  • Reviewed and Placed on File
    • Ironwood Carnegie Library Meeting Minutes of November 28, 2008.
    • Gogebic-Ontonagon Community Action Agency Meeting Minutes of November 20, 2008.
  • Approved execution of State Truckline Right of Way Permit application and authorizing Scott Erickson, City Manager, to sign the required documents.

FINANCIAL REPORTS

Financial Director Julie Frederickson presented the Commission with  a Statement of Revenue and Expenditures and a Monthly Cash Report for December 2008.  The Commission had no questions regarding the documents and they unanimously voted to receive and place them on file.

CITY-WIDE REAPPRAISAL PROJECT

Senior Appraiser Patrick Grabner from Accurate Appraisals, LLC, professional assessment consultants from Menasha, Wisconsin addressed the Commission regarding the City-wide reappraisal his company has just completed. He briefly explained the procedures his company used to assess the properties throughout Ironwood. He also described the procedure that the company has undergone with the State of Michigan.

According to Grabner Notices of Assessment Change were sent out to property owners yesterday, January 26, 2009. Accurate Appraisal LLC will field all phone calls and e-mails from property owners questioning their 2009 assessed values from today throuh Februay 10, 2009. Accurate Appraisal will also schedule appointments for the Assessor's Review if the property owner wishes to speak in person to a representative from the company.

On February 10, 11, and 12, 2009 Accurate Appraisal LLC will hold Assessor's Reviews with property owners to discuss the new assessed values. The purpose of the reviews is the answer simple questions regarding the new values and hopefully lessen the burden of the Board of Review. The times for the Assessor's Reviews are:

  • Tuesday, February 10, 2009: 1:00 PM through 4:00 PM and 5:15 PM through 8:00 PM
  • Wednesday, February 11, 2009: 10:00 AM through 2:00 PM and 3:45 PM through 7:00 PM
  • Thursday, February 12, 2009: 8:00 AM through 12:00 PM and 1:15 PM through 2:45 PM

On March 2nd through the 6th, 2009 Board of Review hearings will be held with Pat Grabner and Dennis Hewitt signing off on the new assessment roll. The times for the Board of Review are:

  • Monday, March 2, 2009 - 5 minute introductory meeting with the Board of Review
  • Tuesday, March 3, 2009 - 9:00 AM through 12:00 PM
  • Wednesday, March 4, 2009 - 1:00 PM through 4:00 PM
  • Thursday, March 5, 2009 - 9:00 AM through 12:00 PM
  • Friday, March 6, 2009 - 9:00 AM through 12:00 PM

The Commission and the general public had no questions for Mr. Grabner. Mayor Noren thanked him for his presentation and the Commission moved on to other business.

PAT O'DONNELL CIVIC CENTER WATER BILL

City Manager Scott Erickson highlighted the situation to the Commission. The Civic Center is no longer on the City of Ironwood's water system. Since 2005, the Center has been getting their water through the Charter Township of Ironwood. Currently the Township purchases water through the City; they add a surcharge; and then they sell it back to their customers. The Center has not received a water bill since the change-over.

In October, the Township submitted a $20,131.76 water bill to the Civic Center for water usage from July 2005 through September 2008. Center Board members contacted the Township to negotiate a possible deal and/or to make payment arrangements. The Township agreed to forgive their 168.62% mark-up of $12,637.20, but they insisted that the Center pay for the Township's cost of the water used -- $7,494.56.

At the last City Commission meeting, the Civic Center Board made a request to the City of Ironwood to see if the City could share the remaining balance with the Township. On January 20, 2009, Township Supervisor Kim Mattson sent the City a response to their appeal. It read: 

"The Charter Township of Ironwood Board recognizes the Pat O'Donnell Civic Center as a vital recreational facility to the entire Gogebic Range.

Due to this fact, the Charter Township of Ironwood has already forgiven $12,637.20 of the water bill for the Civic Center. As you are aware, the Township paid $7,494.56 to the City for the time period of July 2005 through September 2008.

The Charter Township of Ironwood Board's decision is we cannot forgive any of the $7,494.56 as the City Commission has proposed. The Board feels we would not be acting fiscally responsible in forgiving money we have already paid.

If the City forgives the Township the entire $7,494.56, we can absolve the Civic Center of that amount."

This reporter asked to address the Commission regarding the Civic Center water bill situation. I questioned the logic of giving the Township control of the Civic Center water in the first place. To me, it makes little sense for the City to sell the water to the Township at a reduced bulk rate only to purchase it back from them at a 168.62% mark-up. I also questioned why the City was responsible for repairing the water break on the corner of Jackson Road and Lake Road recently. According to City Manager, no bill has been submitted to the Township for the repairs made to their water main by Ironwood City workers, using City of Ironwood equipment and supplies. One would assume that the Township adds a surcharge to the water they purchase from the City of Ironwood mostly to cover their expenses -- repairs and overhead. Why is the City of Ironwood doing work for free for the Township?

City Manager Scott Erickson told the Commission that the City helps the Township at times and the Township helps the City. He said that the City of Ironwood feels more comfortable being on-hand when there is a break near their 16" water main. This still doesn't explain why our City workers were down in the trench fixing Township property at City taxpayer expense,  I reasoned. I suggested that City of Ironwood follow the Township's example of  "fiscal responsiblity" by billing the Township for the repairs. If the Township does work for the City in the future, they can bill the City accordingly. It seems only logical that taxpayer supported entities conduct business in a businesslike manner. Doing "favors" for one another can lead to problems. One entity might end up doing more for the other and they may feel as if they were being used. Billing eachother for services rendered is the proper way to conduct business.

"Are you sending them a bill for our work?" Louise Demasi questioned City Manager Erickson.

"We have not sent them a bill." Erickson explained. He went on to say that they City normally would have sent the Township a bill for doing work on their water main, but in this case they didn't for two reasons: (1) any time there is work to be done on a 16" water main, the City likes to have their crews on hand, and (2) the City crews were on the scene already, initially believing the break was on the City's 16" water main.

When Erickson said the City likes to have crews onhand whenever work is done near a 16" line Demasi responded with, "That's fine, so they can stand there and do nothing, but they were doing something. I took a ride over there. They were working!'

Erickson reponded with, "We're not in the business of making repairs for the Township, but sometimes we help eachother out."

"I understand that," Demasi retorted, "But let's go back to the Civic Center thing here. If the bill was originally $20,000 and some change, like Jim said a 168% over what we sell it to them for did remove $12,000 from the bill -- their profit. $7,500 was the actual cost that we sold it to them for. How long do you think the City of Ironwood would last if none of us got a water bill for five years? Just curious..."

"Not very long..." Erickson responded.

"Is the Civic Center legally responsible to go back five years, being that they change hands every ten minutes over there? There's a new board of directors and a new whatever! Maybe somebody honestly did think this was being donated. And now their saying 'We forgave the profit'. Now we're going to forgive half the bill because it's our building and we'd like to see them try to go ahead and make ends meet. Why don't they want to forgive their half, then go ahead and bill them for our guys being over there. Otherwise if something happens at my place, I want it free too! I pay my water bill each month."

Erickson went on to reason that there are two separate issues... (1) the water bill at the Civic Center and the request to share the balance with the City of Ironwood and (2) the other was the break that occured on Jackson Road. Erickson reasoned that the City crews were on the scene they assumed the break was on the City's 16" line so they did all the prep work; and when they realized that it was the Township's line the Township pitched in and worked side-by-side with the City crews. "We would have been there irregardless!" Erickson said.

Erickson continued to give reasons why the City was not going to bill the township -- we were already there; it was close to the 16"; it happened right after the City's major water break on Lake Street and that could have caused this leak; the history of trying to work together; etc.

"I guess, Scott, I'd agree with you 100%, but the Civic Center and part of these people have been up here for many years like I've been up here for many years, this thing goes on and on and on. Nobody in this whole friggin' community wants to do a thing about it! Hurley doesn't want to get into it... Pence or whatever... Ironwood Township doesn't want any part of it... Erwin Township doesn't want any part of it... so who takes care of the Civic Center? The City of Ironwood! And that's great because we want to do something for our kids." Demasi went on to say that the Township has an opportunity to start giving a little bit back to the Civic Center too, but, according to Demasi, all they want to do is take. So, Demasi said, the City of Ironwood should start taking a bit too. She said the City should bill the Township for work done to their lines.

Noren joked, "It wouldn't be a coincidence if we billed them and the bill happened to be $7,494.56?"

Steve Frank addressed the Commission. "I've heard several comments directed toward me after the what I said at the last meeting that I'm against the Civic Center. I'm in no way against the Civic Center, but I'm not unconditionally for it. The first line of this letter the Township sent says it all, 'The Charter Township of Ironwood Board recognizes the Pat O'Donnell Civic Center as a vital recreational facility to the entire Gogebic Range.' But it's always Ironwood that's footing the bill. In my mind something has to change!"

Noren gave the audience another opportunity to voice their opinion on the water bill. There were no other comments, so the Commission moved on to other matters.

SKATEPARK UPDATE  

According to Dan Petersen, the Michigan Department of Natural Resources (MDNR) recently recommended the Ironwood Skateboard Park for additional funding. For that reason, the City has yet to order the park equipment due to the fact that any possible grants will require matching funds. The City can use the money donated to date as matching dollars in the event that the MDNR approves a grant application from the City.

According to Scott Erickson the entire skatepark project would run in excess of $90,000. He explained that some of the matching funds can be in kind work; Tony Hawk Foundation; the Rotary; etc. He explained that the equipment hasn't been ordered because he wanted to use the existing funds as matching funds for the grant.

Noren expressed concern that a park will not be a reality once again this coming summer. He said, although he would hate to miss out on a grant opportunity, he would hate to put off having the park for yet another year. Noren asked what time-frame was realistic to get the funding. He proposed that the equipment be purchased and the DNR be asked if the equipment can be used as matching funds due to the fact that our summers are so short.

Gemma Lamb asked how long it would take for the equipment to arrive after it was order. Scott Erickson said it would take approximately one month.

Then Noren suggested changing the Civic Center into a year-round skatepark.

City Manager Scott Erickson and Community Development Director told the Commission that they would check and see if the City can continue with the project as planned and possibly use the purchased equipment as "matching funds."

MANAGER'S REPORT

  • Jessieville/Norrie Area Phase I Utility Project - An open house for anyone interested in obtaining information or providing input on the design of Jessieville/Norrie Area Phase I Utility Project will be held from 5:30 PM to 6:30 PM Thursday, January 29, 2009. Coleman Engineering and City of Ironwood representatives will be in the Women's Club Room on the second floor of the Memorial Building, 213 South Marquette Street, Ironwood, Michigan, to provide an overview of the project and answer any questions.
  • Miners' Memorial Heritage Park Trail - A subcommittee of the City of Ironwood Parks and Recreation Committee is soon to recommend a unique memorial to Ironwood's mining heritage in the form of recreational green space proposed as "Miners' Memorial Heritage Park." Official presentation of the subcommittee's recommendations will occur at the regular meeting of the Parks and Recreation Committee in the Memorial Building at 6:00 PM on Monday, February 2nd, 2009. The public is encouraged to attend.

Mayor Noren asked if there were any provisions regarding the land Jerry Pisani was interested in for building storage buildings. Bob Burchell told the Commission that Monday night's presentation should address the issue. Noren expressed concern that there wouldn't be enough time for Pisani (or anybody else who would want to buy the property) to develop the land if the City decides to make zoning changes and selling the land.

CITIZENS COMMENTS

"If you sell this property," Louise Demasi asked regarding the Ayer Street lot eyed by Pisani, "To Pisani, or to Dennis or to whoever this guy is next to me here... that's a tax base right? The City will receive taxes. If we go into parks and recreation and we don't sell the property what is the tax base?"

"In all likelihood, nothing." Noren admitted.

"Then I think the problem is pretty well solved!" Demasi said. She went on to say that if the City doesn't sell property it has an opportunity to sell, then it means the City doesn't need the money. She said if the City doesn't need the money, then it should fix our roads, fix our sidewalks, settle the union contracts, and quit complaining about not having any money. She suggested using part of the land for the trail and part for development.

This reporter requested that the City be fair about sending press releases to the Superior Chronicle. I told the Commission that the IPSD was good at sending us information, but there are many times the City fails to send the Chronicle information it sends to the Globe and to other news sources.

John Wyssling addressed the Commission urging them to do their best to insure that the skatepark be completed this coming summer. He also stated that the City could have both trails and development. He pointed out that the subcommittee did a great job establishing the trail system and so quickly. He suggested that a skatepark could also be a reality in short order with a concentrated effort.

The Commission then went into closed session to discuss the contract negotiations with the AFSCME Local 1538 City Workers and the Ironwood Professional Police Association Unions. They would later return to open session, but no action would be taken.