City Commission Takes Steps to Move Miners Memorial Park Project Forward

IRONWOOD, MI - by Keri Singleton - Tuesday, February 23, 2010 - The Ironwood City Commission held their regular meeting Monday, February 22, 2010, at 5:30 PM in the Commission Chambers at the Memorial Building, downtown Ironwood, Michigan.

The meeting was called to order with an opening prayer, followed by The Pledge of Allegiance.

All Commissioners were present: Gemma Lamb, Kim Corcoran, Mayor Bob Burchell, William Lucius, and Rick Semo.

Approval of the Consent Agenda

The consent agenda was unanimously approved. It is as follows: *1) Approval of Minutes-February 8th Regular City Commission Meeting.

*2) Review and place on file.

A) Parks and Recreation Committee Meeting Minutes of February 1st. B) Downtown Ironwood Development Authority Meeting Minutes of January 28th.

*3) Consider Resolutions #10-002-#10-006 Scheduling Public Hearings For Monday, March 22nd to hear comment relative to the condemnation Of the following structures:

A) 120 May Street at 5:05 p.m.

B) 450 Houk Street at 5:10 p.m.

C) 316 W. Ayer Street at 5:15 p.m.

D) 600 Stevens Street at 5:20 p.m.

E) 80 Thomas Street at 5:25 p.m.

Receive and Place on File From the Finance Director.

1. Statement of Revenue and Expenditures.

2. Monthly Cash Reports.

Finance Director, Julie Fredrickson gave the financial report. For January, the city is at 58% of their budget right now. General funding looks good at under 50%, Julie told the group. The fund balance is about a half million dollars. Sewer expenditures are up a little this year. Equipment fund is down a little from last year. They are still holding at 44% of their budget. Water and sewer revenues are about the same as last year. Expenditures for water and down from last year because they are capitalizing a lot of expenditures. Sewer is at 38%. The Library is at 53%. The Civic Center is at 53% of their expenditures, and the cemetery is at 62%. Street departments are doing well.

The general sense is that they are right where they should be except for some minor adjustments.

Monthly Cash Reports

Julie told the group that January is a time of year when they spend more money than they take in. The general fund is down a couple hundred thousand, with the bulk of that being water fund. Until reimbursement comes from Rural Development, they are paying water. Cash in the bank for loan funds is over 2 million. Julie directed the assembled to a list of expenditures.

Commissioner Kim Corcoran asked about a peer review evaluation. City Manager Scott Erickson said a program through the American Public Works Association. They have a group that comes in and evaluates the public works department. They help them become more efficient, and come up with recommendations on how to do so.

A motion was made by Commissioner Lamb to Receive and Place on File from the Finance Director: Statements of Revenue and Expenditures and Monthly Cash reports. Motion supported by Commissioner Corcoran. Roll Call: all yes.

Approval of the Agenda

A motion was made by Commissioner Lamb to approve the Agenda, supported by Commissioner Lucius. All were in favor.

No Citizens were present wishing to address the Commission on Items on the Agenda.

New Business

Proclaim February 28th through March 31st, 2010, as BIG READ 2010.

Elaine Erickson from the Library told the Commission about Big Read, where the community reads one book, and comes together for a variety of activities based on the book. This year’s book is Call of The Wild. Elaine explained that a study done by the National Endowment of the Arts said that literary reading is down; however, those who do partake in literary reading are more civically engaged, they tend to be more engaged in the art and culture of the community, and they tend to be more athletic, as well as do more community service.

The goal is to increase this civic engagement, and the Democratic Process engagement, and increase literary reading. Elaine said they are happy to be in their third participation of the BIG READ. The first book was Grapes of Wrath, and the second was The Maltese Falcon, and this year is Call of the Wild. There are activities going on all month, and everyone is encouraged to go the library and get their free copy of Call of The Wild, as well as get information about “Iditaread“, which will have adults and kids competing at each library. There is a wildly good-looking dog photo contest going on all month. Kickoff for the Big Read is February 28th, at All Saints.

There will be panning for gold. Jim and Judy St. Arnold will present a program. There are many more events going on, calendars are available at your local library. Events are taking place in all four communities: Bessemer, Wakefield, Ironwood, and Hurley. Elaine said it is a wonderful collaborative effort with all four communities. Anyone can attend anything in any community. Elaine said their purpose of the evening is to have The Commission proclaim March BIG READ MONTH 2010.

Mayor Burchell said it is a great cause and read the proclamation:

“Whereas the Ironwood Carnegie Library and it’s community partners, including the Wakefield, Bessemer, and Hurley libraries, Hope Animal Shelter and the Gogebic County 4-H are dedicated to instilling a love of reading and learning in residents of all ages. And whereas the BIG READ is an initiative by The National Endowment For The Arts, in partnership with the Institute of the Museum and Library Services and Arts in the Midwest, intended to restore reading to the center of American culture and to bring communities together through literature. And whereas the BIG READ is a community-wide project designed to bring people of all ages together to read, discuss, and celebrate one book. And whereas the Ironwood Carnegie Library and it’s community partners were honored to receive a grant from the National Endowment of the Arts, and whereas the Call of the Wild, by Jack London, has been selected to support our Range residents in discovering and re-discovering a love of re-reading great literature. And whereas community events, book discussions, and celebrations of reading; movies, and art work will be a part of this program. And now; therefore, I Bob Burchell, Mayor, proclaim February 28th through March 31st 2010, as BIG READ 2010, Call Of The Wild, and invite all residents to join with friends, co-workers, and family, to read this great novel, and enjoy the full spectrum of events, which are part of the BIG READ.”

A motion of support was made by Commissioner Lamb, supported by Commissioner Corcoran. All in favor. Congratulations from Mayor Burchell and applause followed the vote. Everyone is reminded to get their free book.

Discuss and Consider Youth Liaison to the City Commission.

Commissioner Lucius stressed that Ironwood will have a long-term plan, and it is important to hear from area young people. It is important to know what their current events are; as well as interests, needs, and wants. Commissioner Lucius said it was his idea to have a youth liaison, who would come to meetings and report any needs they might have. To represent, he told the group someone from the high school should be there for K-12, as well as someone in the 20’s-30’s age group. Lucius said to keep it from being burdensome, the representatives will alternate coming to meetings. For example; one meeting the rep from K-12 would attend, the next meeting, the rep from the 20-30 age group would attend. It can help the city understand how to retain and attract young people to the area.

Commissioner Lamb asked if an alternate could be chosen in case someone had scheduling conflicts, and City Manager Erickson said that would be appropriate.

It was discussed that Will Andresen had conducted a survey regarding young people and the area. Scott Erickson said he can get copies of the survey. Commissioner Lucius made a motion to submit a resolution for the next meeting. The motion was supported by Commissioner Lamb, all in favor.

Discuss and Consider Resolution #10-007 amending the General Appropriation Act for Fiscal Year 2009-2010.

Julie Fredrickson explained that the General Appropriation Act is basically a summary of the budget. There are two times a year to amend the Act. The biggest adjustment is due to the fact that at a January consensus the state’s amount of earmarked money for the city of Ironwood was dropped from $850,000 to $742,000, leaving them short $108,000 from the state of Michigan. She said when they did they budget, they expected a hit, so they were on the conservative side, budgeting down to $800,000, leaving $50,000 to adjust for. The recommendation for tonight is to amend the general fund by $50,000. They want reduce the $50,000 in appropriations from the street funds. Julie said the street funds are not cost-efficient. The reason they can do that is they have unfilled positions on the street department. For this year only, to balance the budget, they are going to reduce that $50,000 out of the street fund. Julie said they feel they can absorb it because of the unfilled positions. There were also some items that were over 100%, so she recommends taking $10,000 out of contingency, and putting $5,000 into labor relations, and $5,000 into other sanitary activities.

Commissioner Corcoran pointed out that in 2006, there were 24 workers, and now there are 15. She said road conditions are among concerns of the public, and inquired about hiring of more staff. City Manager Erickson said they have four unfilled positions right now. Two of the positions are going through arbitration. Therefore, two positions were budgeted for until May. A decision on the arbitration cases could take typically 30-60 days. There are two other positions open; water and sewer. They have someone they expect on staff within a month in water. Of the three street positions, two will be filled, with one in reserve. There are three utility positions they are working on filling. Scott said he expects to have 4-5 positions filled. Julie said this is a one-time deal to balance the 2010 budget.

Commissioner William Lucius asked Julie about the reasoning for taking the whole amount from street funds, without taking some from multiple funds. Julie said that only major streets, local streets, cemetery and building inspections are supported by general fund. The general fund is contributing to the cemetery somewhere in the $30,000 range, according to Julie. She said if more were taken from the cemetery, it would cause a deficit. Lucius asked if it would happen at this time of year, and Julie said yes. Julie said even though the cemetery is closed in the winter, the general fund has to support it to around $30,000. She explained it is not taking in enough revenue to support itself, even part-time. Julie explained that street funds did not have the expenditures that they expected they would. They had budgeted for the four extra people being there all year long. Commissioner Lucius said basically that’s saying they can’t fill the street positions. Julie said they probably wouldn’t fill the positions until June. She said come July of next year, they may be filling those positions, so money will need to go back in for that. Julie said all the other funds except street funds are self-sufficient. Mayor Burchell asked about the two opportunities to change things, and Julie said that is what they choose, it can be done as much as wanted.

Rick Semo made a motion to adopt Resolution #10-007 as stated, supported by Commissioner Lamb, all in favor in roll call vote.

Update on sale of 8 acre parcel(City owned parcel north of Ayer Street) to Farmhaus, LLC.

Scott Erickson said that the city owns a little over 16 acres on Ayer Street, west of Luxmore. There were two option agreements on the property at one point. The option was for 8 acres on the west side and 8 acres on the east side. The eight acres on the east side off Luxmore was for LLC, or Bob Schonberg. The option on the west side was for Hovey Company. The options had deadlines, and Hovey let their option go. LLC did exercise their option, and said they wanted to purchase the 8 acres from the city. There were then talks with Bob Schonberg, and an appraisal was done. Boundaries need to be turned into a legal description. Appraisals from 2009 valued the property at $2,774 per acre. Bob Schonberg said he is still interested in the property. The cost of the property would be $23,000. City Manager Erickson said the zoning of the property is R-2. Mr. Erickson said he believes that Bob Schonberg’s intentions for the property are for housing units; such as townhouses. Mayor Burchell said no decision would be made tonight. Manager Erickson said there is no rush. Commissioner Lucius asked when the options expire. It is not sure, but will be checked into.

Commissioner Semo mentioned the property west of Ayer, that Hovey was interested in. Scott Erickson said it is city-owned, the option expired and was not exercised. Rick Semo then brought up the area on the South side of Ayer Street, known as the “caves” area. He asked if the area was under any sort of protection from being sold. Manager Erickson said the Commission had taken action not to sell it, but the action just expired. Scott said that the city cannot sell any property unless a majority of the Commission authorized it. It expired 5 days ago. Commissioner Lucius said that is their view now that the best use of the land is not to sell it. Manager Erickson said it can be discussed during goal setting. Mayor Burchell said that it is not an action issue tonight; however, an issue is whether or not to protect the “caves” area from being sold. City Attorney Dennis Cossi said the Commission can change it’s mind, in regards to selling the property.

Commissioner Lamb said that she found Resolution #9-330, that was about the Miner’s Memorial Park, dated Feb 17, 2009. Gemma Lamb said she was going to mention to extend the Resolution. Mayor Burchell said that the original plan to develop this was in coordination with the development of the Hovey Project. They were two separate projects adjacent to each other. It needs to be decided if the buyer has an enforcement option. Mayor Burchell recommended more research and a discussion with the Planning Commission. Then it can be brought back to the Commission. There is a planning session on Thursday night, and it can be addressed during the workshop.

Discuss and Consider Resolution of Intent to Transfer CDBG-Capitalized Revolving Loan Fund to a Western Upper Peninsula Revolving Loan Fund.

Mayor Burchell said it is regionalization of EDC money. Scott Ercikson said the State of Michigan would like to see the six of the local EDC revolving loan funds in the Western end of the U.P. consolidate into a regional revolving loan fund. They have indicated they have the authority to require that, whether the entities agree to it or not. The six entities are: the city of Ironwood, Gogebic County, the Village of Baraga, Houghton County, Iron County, and Ontonagan County. The original deadline for action by the revolving loan fund members was February 28th, but has been extended to March 31st, 2010. Scott Erickson said more research is needed before an interim resolution is made. City Attorney Dennis Cossi said it is unclear at this point whether the state can legally force consolidation, or if the state can take they money in the fund now and put it in the regional fund or not. Mr. Cossi, City Attorney said that there is a strong probability that this regionalization will happen. He said the best case scenario is that maybe they will retain control over some of the funds that they have already expended. Commissioner Lucius made a motion to table this issue until the next meeting, supported by Commissioner Kim Corcoran. All were in favor.

Manager’s Report

Scott Erickson said that the first phase of the big water and sewer project -Jessieville/Norrie project, is going forward. All information was sent from Rural Development to Chicago. Chicago had some questions that they are working on and they expect an answer this week. They are anticipating approval soon.

A meeting was held with Cathi Cole, from MEDC, that was relative to the submittal of the CDBG Grant for the projects downtown. She pointed out some projects that had to be taken off the application; like banners on poles. She is looking at a map to show where improvements will be, and will review it with her board on Wednesday. If everything looks good, she will invite the city to make a full application. Scott says they hope to hear something by the end of this week.

An Infrastructure Capacity Enhancement Grant was submitted last week. It was confirmed received by Lansing.

Other Matters

Commissioner Gemma Lamb passed out a resolution made by a previous Commission, #9-330. It expired on the 17th of February, 2010. Gemma amended the first paragraph of the resolution to:

A resolution to support the establishment of a new historic park plan at the center of the city of Ironwood to be called the Miner’s Memorial Heritage Park, encompassing the original mining sites of: Ashland, Norrie, Aurora and Pabst Mines. Whereas, the Miner’s Memorial Heritage Park is established for the benefit of the entire community. Whereas the Parks and Recreation Committee, having examined a Parks and Recreation Master Plan, and the Planning Commission have both unanimously recommended using the publicly owned land which is openly zoned and located in the center of the city of Ironwood for the Miner’s Memorial Heritage Park. Whereas, the cost of establishing and maintaining the Miner’s Memorial Heritage Park will be derived from donations, grants, in-kind contributions, volunteer labor, and other funding mechanisms. Whereas there is no increase in the city’s liability insurance, due to the creation of the Miner’s Memorial Heritage Park. Whereas a not-for-profit entity, the Friends of the Miner’s Memorial Heritage Park, Incorporated, to guide the development and maintenance of the Miner’s Memorial Heritage Park. Whereas, should the maintenance of the Miner’s Memorial Heritage Park lapse for one full year, park use for recreational purposes would be revoked. Now, therefore, the City Commission is freezing the sale for all openly zoned and surplus properties in this region, and hereby authorizes the implementation of the Miner’s Memorial Heritage Park Plan.

Gemma expressed her wish to go forward, as there are grant opportunities available. She said the Friends of the Miner’s Memorial Park have showed their willingness to work for getting a plan for a park. They have done everything asked of them, while providing historical, and environmental, and educational activities to this area. They have also promoted the area, while projecting a positive presence.

Grants have to be in by April 1st.

A motion was made by Gemma Lamb to authorize the Friends of the Miner’s Memorial Heritage Park to present a plan in conjunction with the City of Ironwood Parks and Recreation Committee to the City Commission, in a timely fashion. Supported by Rick Semo.

All in favor yes.

Citizens Wishing to Address the Commission on Items Not on The Agenda (five minute limit).

Scott Erickson discussed a letter from Ironwood Township regarding a public hearing on February 25th, at 6:00 PM. The meeting is relative to the citing of an asphalt plant. The location is next to Spring Creek, which runs right through the city’s well field area. The concern is about the possibility of accidents at the site, and the proximity of the proposed plant to our water source. Scott said they are staying on the record as saying Ironwood does not support the plant. The contamination of the well field is a huge concern. Scott said he will go to the meeting on behalf of the city. The Commissioners position has not changed.

Rick Semo said a youth summit was held recently, and perhaps a report could be obtained to see what they have to say. Scott Erickson, City manager, said he will check into it.

Citizen Don Maki expressed his position of being against the Park. He said he hopes the Planning Commission leaves at least a 200 foot step back on all the roads. Don said he will donate the slab for the Heritage Display, but he feels 300 acres are not needed in our tax base for a Park.

Citizen George Goerig addressed the Commissioners about land sales. He said that Mr. Schonberg is a local private investor who wants to invest into Ironwood by building townhouses. He said that this is the second time the Commission did this to local private investors. He told the Commission they were not showing very good financial judgment by approving a park.

Mayor Burchell said they have not made a statement about not selling the land, so his impression has not been confirmed by a vote. He said he appreciated his comment. The mayor also said that no comment was made that stated they had any intention of selling the land.

Citizen Don Maki asked the Commission if they would go to Hovey and tell them the 8 acres is for sale for $20,000? He said it was offered for $60,000 if they wanted to purchase it.

Motion to adjourn mad by Commissioner Lamb, supported by Commissioner Corcoran. All in favor.

MEETING ADJOURNED