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DECEMBER 14, 2010 REGULAR MEETING CALL TO ORDER

Excuse Commissioner Sansom

CONSENT AGENDA MOTION

RECORD OF THE PROCEEDINGS OF THE REGULAR BOYNE CITY COMMISSION MEETING DULY CALLED AND HELD AT BOYNE CITY HALL, 319 NORTH LAKE STREET, ON TUESDAY DECEMBER 14, 2010

Mayor Chuck Vondra called the meeting to order at 7:00 pm followed by the Pledge of Allegiance.

Present: Mayor Chuck Vondra, Mayor Pro-Tem Dan Adkison, Commissioners Ron Grunch and Mike Cummings Absent: Commissioner Laura Sansom Staff: Michael Cain, Dan Meads, Barb Brooks, Andy Kovolski, Dennis Amesbury, Scott McPherson, Hugh Conklin, John LaMont, Randy Howard, Shannon McMaster and Cindy Grice Others: There were twelve citizens in attendance, including a representative from the Petoskey News Review.

2010-12-171 Moved by Adkison Second by Cummings To excuse Commissioner Sansom from attending tonight’s meeting Ayes: 4 Nays: 0 Absent: 1, Commissioner Sansom Motion carried

2010-12-172 Moved by Grunch Second by Cummings 2010-12-172A Approval of the November 23, 2010 regular City Commission meeting minutes as presented 2010-12-172B Approval of the November 30, 2010 Joint Board and City Commission meeting minutes as presented 2010-12-172C Approval of Certified Local Government Resolution 2010-12-01 as presented 2010-12-172D Approval of Certified Local Government Resolution 2010-12-02 as presented 2010-12-172E Approval of Certified Local Government Resolution 2010-12-03 as presented 2010-12-172F Approval of Certified Local Government Resolution 2010-12-04 as presented 2010-12-172G Approval of a request from the Boyne City and Charlevoix Alano Club’s fundraising concept and authorization of the City Manager and/or his designee to work out an implement the necessary details

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2010-12-172H Approval of Metro Act Right of Way Permit Extension from AT&T as presented 2010-12-172I Approval of grant agreement with Charlevoix County Community Foundation for a $2,000 grant to support the Irish Heritage Festival Ayes: 4 Nays: 0 Absent: 1, Commissioner Sansom Motion carried

Lucy Ackland of Taylor Street said that no one plows her street. She and her neighbor pay to have that street plowed. Andy Kovolski said he and the City Manager are researching and should have the answer by the end of next week.

Correspondence from the State of Michigan Liquor Control Commission regarding the amendment of the Michigan Control Code to allow for the sale of spirits, mixed spirit drink and beer and wine between the hours of 7 am on Sundays and 2 am on Monday.

City Manager Cain reported: • He met with a representative from MERIT last week to discuss the

route of broadband into town. • We are working on publishing bid RFP’s. • The Chamber of Commerce held their December board meeting at

City Hall. • We are checking into the possibility of an ice rink at Sunset Park.

The draft minutes of the November Boards and Commission meeting minutes were received and filed.

2010-12-173 Moved by Grunch Second by Cummings To postpone discussion of the Agenda Items/City Manager’s absence until the next meeting. Ayes: 4 Nays: 0 Absent: 1, Commissioner Sansom Motion carried

Consideration of second reading and adoption of proposed Sign Ordinance Section 7.2 Amendment Planning Director Scott McPherson discussed the proposed amendment. The Planning Commission determined developed different provisions for the Traditional Residential District and the Rural Estate District which added a section – 7.2, to the existing sign ordinance which would be as follows: Preexisting legal nonconforming commercial uses located in the RED may have total signage not to exceed 12 square feet in area. Signage may

CITIZENS COMMENTS CORRESPONDENCE CITY MANAGERS REPORT REPORTS OF OFFICERS, BOARDS, AND STANDING COMMITTEES Agenda Items/Absence from City Second Reading Sign Ordinance Section 7.2 Amendment

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MOTION

Second Reading Zoning Ordinance Amendment to Article 14 MOTION

consist of wall signs, free standing signs or a combination. Free standing signs shall only be permitted if the building has a front yard setback of at least ten feet. Free standing signs in the RED shall not to exceed a maximum of 6 feet. Signs may be illuminated only during hours of operation and in accordance with the provisions of section 7.1(5). Preexisting legal nonconforming commercial uses located in the TRD may have total signage not to exceed 8 square feet in area. Signage may consist of wall signs, free standing signs or a combination. Free standing signs shall only be permitted if the building has a front yard setback of at least ten feet. Free standing signs in the TRD shall not to exceed a maximum height of four feet. Signs may be illuminated only during hours of operation and in accordance with the provisions of section 7.1 (5). Staff Comments: None Citizens Comments: None Board Deliberation: All are in agreement. 2010-12-174 Moved by Adkison Second by Grunch To approve the second reading and adoption of proposed Sign Ordinance Section 7.2 Amendment Ayes: 4 Nays: 0 Absent: 1, Commissioner Sansom Motion carried

Consideration of second reading and adoption of proposed Zoning Ordinance Amendment to Article 14 Planning Director Scott McPherson discussed the proposed amendment to Zoning Ordinance Article 14. This amendment added a wider variety of uses in the Planned Industrial District through the limitation of 2,000 square feet for accessory retail uses was unnecessary and made a recommendation to the Planning Commission to eliminate that particular provision. Input was also received from the Main Street Board, the EDC/LDFA Board and the Chamber of Commerce. The general consensus is that the uses in the Industrial Park should be expanded to make the park more of a business park. Staff Comments: None Citizens Comments: None Board Deliberation: All are in agreement 2010-12-175 Moved by Grunch Second by Cummings

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To approve of second reading and adoption of proposed Zoning Ordinance Amendment to Article 14 Ayes: 4 Nays: 0 Absent: 1, Commissioner Sansom Motion carried

Consideration of Public Hearing to close out the Community Development Block Grant MSC 209132 EDPA Dilworth Hotel Planning Grant in which federal funds were used Main Street Program Manager Hugh Conklin discussed the process to complete the Dilworth Hotel Feasibility Study grant. A public hearing is required to be held to review the project, officially titled CDBG MSC 209132-EDPA Dilworth Hotel Planning Grant, in which federal funds were used. The grant funds were approved by the MEDC for an amount not to exceed $25,000 with a private match of the same amount. The total cost for the study was $38,000, split equally at $19,000 each between grant funds and the City’s match which was paid through Main Street. The study was complete and has been a key tool in allowing the progress that has been made to date, in the effort to rehabilitate the Dilworth and restore its role in an important economic engine in the Community. No other action is required. Mayor Vondra opened the Public Hearing at 7:19 p.m. Tom Johnson of Landmark Development said this exactly what was needed to get the project off. The study showed the hotel can be profitable. Mayor Pro Tem Adkison said he thinks it was good. Commissioner Cummings asked if the city would be putting more funds in. Tom Johnson said there will still be help needed with the grants. Mayor Vondra closed the Public Hearing at 7:21 p.m.

Introduction by Landmark of facility operators, Summerside Properties, LLC of Traverse City Tom Johnson of Landmark Development introduced Alex Mowczan and Jack Vander Zouwen of Summerside Properties, of Traverse City who will be the operators of the Dilworth Hotel. Mr. Mowczan discussed the projects and operations they currently have in Traverse City. Many years of experience will be brought to the operations of the Dilworth Hotel. City Manager Cain added that he has met with the team of operators. The right resources and people are being brought to the table, These are all the right pieces. Citizens Comments: None Staff Comments: None Board Deliberation: Commissioner Grunch thanked the Developers and said he is very excited about this project. Commissioner Cummings

Public Hearing for Dilworth Feasibility Study Grant Close-out Dilworth Update

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inquired what the brand name will be and was informed there is still research being done. Commissioner Cummings also asked Tom Johnson if he will be part owner. Tom said no. The developer pulls together the team to make this project happen. Mayor Pro-Tem Adkison also expressed thanks to the developer.

Presentation of $2,028.20 from the Boyne City Ambulance Association from raffle funds used for the purchase of three EZ I-O Bone Drills for the Boyne City EMS Department EMS Director John LaMont discussed the funds raised to allow the Ambulance Association to provide funds to purchase 3 bone drills. This piece of equipment allows the paramedic to gain access to a medication/fluid port in a critical condition when an IV line is not accessible. Shirley Matz of the Ambulance presented a check for $2,000 to Mayor Vondra.

Consideration to authorize staff to consult with appropriate parties on possible options for addressing the concerns raised in petitions received regarding Marshall Road City Manager Cain discussed the petitions we recently received regarding the desire for improvements to Marshall Road west of Anderson Road. These same petitions were presented to Wilson and Eveline Townships since the majority of the section of the road in question is within their jurisdictions. Although a portion of the road is within the city, the Charlevoix County Road Commission collects all the Act 51 funds for that section and maintains the road. The road commission bid out the improvements for this section of road and got a low bid of $214,000. Since Wilson Township did not have the funds for this project, no work was done. Marshall Road is in poor shape. Many sections that were once paved have reverted back to gravel. Citizens Comments: Arthur Zawada said he worked on the petition this past summer. He only had one negative who would not sign. He has attended Wilson Township and Eveline Township meetings with the goal to get this work done. Staff Comments: None Board Deliberation: Commissioner Cummings discussed the stage of this road in the PASER studies. Commissioner Grunch said to make it a priority to get it done. Mayor Vondra inquired if within the ACT 51 funds, there was an equal trade. 2010-12-176 Moved by Adkison Second by Cummings That the City Commission refer this matter back to staff for consultations with the appropriate parties on possible options for addressing the concerns raised in the petitions with the budget request.

Presentation of Funds from the Boyne City Ambulance Association Marshall Road Improvement Petition MOTION

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Ayes: 4 Nays: 0 Absent: 1, Commissioner Sansom Motion carried

Consideration to authorize the City Manager to pursue support and funding for the projects noted through the Charlevoix County Local Task Force considering the ranking noted and taking into consideration funding equity among the Task Force partners City Manager Cain discussed that each year the Charlevoix County Road Commission convenes a meeting to consider current and future road improvement and transit acquisitions for possible funding under several federal and state categories. The Act 51 and transit parties have worked together over the years to make sure each project gets as fair a turn as possible. A map was provided by the Road Commission highlighting the eligible roads in Boyne City. Staff has put together the following list of recommended possible projects, in order of priority for the Commission’s consideration as follows: Paving with curb and gutter and storm drains for Court Street from Park Street west to Lake Street and then South on Lake Street to West Michigan; North Lake Street road base and surface repairs with curb and gutter as needed from the Boyne River to West Michigan; paving with curb and gutter and storm drains on Division Street from Pleasant west to Front Street. Staff Comments: Andy Kovolski agreed. Citizens Comments: None Board Deliberation: All are in agreeement 2010-12-177 Moved by Adkison Second by Grunch To authorize the City Manager to pursue support and funding for the projects noted through the Charlevoix County Local Task Force considering the ranking noted and taking into consideration funding equity among the Task Force partners. Ayes: 4 Nays: 0 Absent: 1, Commissioner Sansom Motion carried

Consideration to authorize staff to apply for an MEDC DIG grant Notice of Intent as presented and authorize the Mayor, City Manager and/or City Clerk to create and execute any documents necessary City Manager Cain discussed the new round of infrastructure improvements grants. This program uses federal CDBG funds to target infrastructure improvements in strictly defined downtown districts. If the Notice of Intent is accepted by the MEDC, the City would then be invited to submit a more formal grant application. The City has several opportunities to back out of the process should it so choose.

Federal Aid Road Projects MOTION CDBG – DIG Grant Opportunity

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The worst street remaining in our downtown area is by far South Park Street from Water to Pine Streets. We need to replace the very bad water and sewer lines below. These lines are in such poor condition that our Water/Wastewater department only does work that is absolutely necessary on them to avoid them failing completely. We have also been contacted by abutting businesses on a regular basis over the years hoping that we could upgrade the street to bring it in line with the others in the area and fix outstanding concerns dealing with parking, pedestrian and traffic issues. A map of the area and preliminary estimates from C2AE were provided. Citizens Comments: Main Street director Hugh Conklin said he strongly endorses this work and the application to do this. Citizens Comments: Tim McAndrew, owner of the Boyne City Coop agrees that this is a much needed project and that the City should look at adding a crosswalk. Board Deliberation: All are in agreement. 2010-12-178 Moved by Grunch Second by Adkison To authorize staff to apply for an MEDC DIG grant Notice of Intent as presented and authorize the Mayor, City Manager and/or City Clerk to create and execute any documents necessary. Ayes: 4 Nays: 0 Absent: 1, Commissioner Sansom Motion carried

Consideration to approve funding Health Saving’s Accounts for employees participating in the City’s Priority Health HSA plan for 2011 at the $1,750 and $3,500 levels as outlined City Manager Cain discussed the health insurance being provided to non-union employees by Priority Health. This plan has been provided since April of 2010. It is a high deductible plan with and HSA funded by the City. The recommended levels this year are $3,500 HSA funding for the two-person and family policies and $1,750 for singles. Staff Comments: Cindy Grice and Barb Brooks both voiced their support of this recommendation: Citizens Comments: None Board Deliberation: Mayor Vondra expressed concerns of negotiating this at this point. All are in agreement with the recommendation. 2010-12-179 Moved by Grunch Second by Adkison To approve funding Health Saving’s Accounts for employees participating

MOTION Health Insurance Discussions MOTION

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in the City’s Priority Health HAS plan for 2011 at the $1,750 and $3,500 levels as outlined. Ayes: 4 Nays: 0 Absent: 1, Commissioner Sansom Motion carried

Consideration to make language changes to the EMS contracts with the participating townships and authorize the City Manager and City Clerk/Treasurer to execute the documents EMS Director John LaMont discussed changes in language in our existing contract with Wilson Township for EMS services that need to be addressed. The contract doesn’t change, just language clean up occurs. This was requested by the Wilson Township supervisor. Citizens Comments: None Staff Comments: None Board Deliberation: All are in agreement 2010-12-180 Moved by Grunch Second by Adkison To approve language changes to the EMS contracts with the participating townships and authorize the City Manager and City Clerk/Treasurer to execute the documents. Ayes: 4 Nays: 0 Absent: 1, Commissioner Sansom Motion carried

Consideration to approve of a resolution approving transfer of Resort Class C SDM Liquor License request of Patrick Schaller for the 220 South Lake Street location as presented John McCahan of the Atrium Inn stated that he has two issues, one is the noise ordinance and the other has to do with the zoning of the property at 220 S. Lake Street. He stated that his contention is when the restaurant was modified, it became a nightclub. A nightclub is a conditional use in that district. The people the license is being transferred to are effectively the same as the previous management. This should go thru the conditional use process first. Mayor Vondra asked Mr. McCahan what his argument would be to a pre-existing non-conforming; what was the increase. Mr. McCahan said it would be the massive sound system, more noise. Scott McPherson stated that 220 Lake Street has been a place that has entertainment, after hours music for a long time. He reviewed this back to 1988 liquor license transfers and looked at the basic components of the

Ambulance Agreements MOTION Liquor License transfer for Patrick Schaller

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use. The most recent changes to the facility haven’t changed the underlying use. It has a legal non-conforming status. Police Chief Randy Howard said the resolution is for an approval of a transfer of a liquor license. We have an empty building sitting in the CDB. The license is vital to open the doors and create jobs. The liquor license is part of this restaurant. Main Street Program Director Hugh Conklin said he thinks the City Commission should support this. It was a dying business. There was a huge investment in this building and in this community. Board Deliberation: Commissioner Cummings said the purpose of this was to open a line of communication because we are all speculating. The people in the Atrium have rights too. We need to direct our attorney to interpret. Mayor Vondra said we have a noise ordinance. Commissioner Cummings said maybe if we waited one month. He wants to see people get together. Commissioner Vondra said our point is job creation and getting the place back open. There is no basis to deny this request. Mayor Pro-Tem Adkison said as far as the noise, it hasn’t changed. It was loud in years past. 2010-12-188 Moved by Adkison Second by Cummings To approve of resolution approving transfer of Resort Class C SDM Liquor License request of Patrick Schaller to be located at 220 South Lake Street as presented. Ayes: 4 Nays: 0 Absent: 1, Commissioner Sansom Motion carried

Commissioner Grunch asked for an update on Division Street. City Manager Cain said there has been correspondence with the State; the contractor has been put on notice. We have our avenues in place. Mayor Pro-Tem Adkison asked if the snowplowing schedule in the Air Industrial Park has changed. Andy said no.

Moved by Mayor Vondra, seconded by Commissioner Adkison to adjourn the regular City Commission meeting of Tuesday, December 14, 2010 at 9:21 p.m. _____________________ ________________________ Cindy Grice Chuck Vondra City Clerk/Treasurer Mayor

MOTION GOOD OF THE ORDER ADJOURNMENT