February 2001 Status Report

It is my pleasure to once again submit my monthly status report for your review and information. Since the annual report was submitted to you just a month ago, this report will probably not be as long or as comprehensive as my typical monthly report. However, if you would like additional information on an item listed, or if I did not include something that you would like to know more about, please do not hesitate to contact me.

1. Wastewater Treatment Plant

This past December we submitted the required NPDES application to the Environmental Protection Agency. We had not heard a thing from the EPA until a few days ago. At that time our attorney received a letter from the EPA's attorney which seemed to dispute some of the understandings that the two attorneys had prior to submission of the application. Our attorney has sent a letter back to EPA strongly disagreeing with their interpretation of their many phone conferences. There appear to be three issues.

o The proposed dissolved oxygen level appears to be higher than the state limit. However, Dave Goffnett has reviewed the letter and says we have to also look at the other proposed limits before we know the total picture.

o It was our understanding that, while they would not guarantee a no-reopener clause in the permit, they likely would not reopen the permit during its five-year period. They are now saying they can't say for sure that the permit would not be reopened during that period.

o We were concerned about the requirement that we submit copies of all reports to the Tribe. We said we would be happy to submit courtesy copies, but we didn't want to be required to submit the reports. One of the issues appealed by Union Township in their license was the requirement that they submit copies of all their reports to the Tribe. The EPA Appeals Board ruled that the Township must submit reports to the Tribe, so EPA will most likely require that we do so as well.

During a recent phone call, Duane Ellis, George Davis and I agreed that we will let the permit process run its normal course and take no further action at this point other than George's response to their letter. We still plan to start construction sometime next month.

2. Project 2000 Tax Case

As you know, we have been anticipating a hearing date some time in April or May. At this point we have heard nothing from the Tax Tribunal, so we have no specific date scheduled as yet.

3. Goal-Setting

Unfortunately we are having a very difficult time getting a date that works for everyone including Marilynn Semonick. As you know, Marilynn has helped us with this process in the past. She is not available now until the third or fourth week in April. I don't think we want to wait that long, so we are now attempting to schedule a session with Lew Bender on March 13th. Lew has worked with the City for a number of years on various consulting projects. Once we have heard from all members of the Commission regarding their availability on that date, we will get back with you.

4. Tribal Two Percent

Staff has submitted their Tribal two percent requests. I will be submitting them to the Commission at this week's meeting to have you begin prioritizing the projects. We will then meet with the County and look at joint prioritization. We will then return to the Commission for your final approval. This schedule will permit us a couple of opportunities to look at the requests prior to the March 30th submittal date.

5. Liaison Meetings

We held our most recent liaison meeting with Chris Petras from the Tribe and representatives from the County in February. I have attached a copy of the minutes from that meeting for your review. Our next meeting with the County is scheduled for Friday, March 9th, and we will be setting up our next meeting with the Township for March as well.

6. Grid Road Plan

We had originally planned to present the Urban Area Traffic Master Plan for your approval at this meeting. The City's Planning Commission will hold a public hearing on the plan at their March 1st meeting, so we will wait for their input before we have you approve the plan. We will therefore present the plan to you at your March 12th meeting.

7. Income Tax Study

As I mentioned during the initial presentation on the income tax issue, we will be scheduling additional work sessions with the Commission during the months of March and April. At the first meeting in March we will step back a little bit and review the reasons why staff recommended that we look at the Income Tax Study, and we will also discuss some revenue and expenditure projections.

8. City-CMU Student Liaison Committee

The Committee continues to meet; in fact, the next meeting is scheduled for February 22nd. A subcommittee was formed and met last week to talk about how to ascertain the kinds of information students need when they move off campus and how best to provide that information. I think the Committee is making good progress. One of the ideas we are looking at is a block party in the neighborhood north of the campus. The purpose of the block party would be to encourage interaction between tenants and residents of the neighborhood. We feel the best time to hold such an event would be in the fall when new tenants have moved in as the new school year begins.

9. School Violence Task Force

In my annual report I mentioned the work the task force has done and indicated that the final reports should be completed and presented to the community shortly. I spoke to Doug LaLone on Monday the 19th, and he indicated they are to receive the final draft on Monday the 26th, and will then schedule a meeting for the first week in March. At that time they will establish a schedule for their public presentations. As soon as I get additional information on schedules I will let you know.

10. Borden Creamery Building

As you know, Dave McGuire of Brownfield Development Company has an option on the property through the Economic Development Corporation. He plans to build 40 low and moderate-income rental units in the building, and one of his funding sources is the Michigan State Housing Development Authority (MSHDA). It is my understanding that the application for a funding allocation is due by March 15th. I would assume it will take two or three months for them to review the applications, so it will be this summer before he knows if he will receive any money from MSHDA for the project.

11. Organizational Development Program

As some of you know, we have been involved in an organizational development training program for the last couple of years. I have not spoken of it much in the past few months, but just wanted to take this opportunity to let you know that the process is going well. For those of you new to the program, organizational development is a program of improving work processes through team concepts and participation. In the past we have depended on an outside person to assist us with the program, but we are now at a point where we will be bringing most of that in-house.

12. Dave McGuire Project

In this case I am referring to the two rental buildings he constructed on the old Honeggers site. It is my understanding that the second building is now occupied, and the unfinished portion of the building on the lower level is where his office will be located. This is to be finished some time this spring.

13. Township Wastewater Treatment Plant

You may have read that the Township plant is up and running. Two years ago we entered into an agreement with the Township that we would buy back their capacity when they ceased to discharge into our plant. The purchase was to be in phases with the City's total cost to be $440,000. I would anticipate that they will be looking for the first payment of $300,000 shortly. The 2001 budget includes the full payment amount, so it will not present any problems when they request payment.

Attending were: Dick Curtiss, Jerry Huber, Al Kaufmann, David Ling, Chris Petras, Mike Pittsley, and Paul Preston

Dick raised a concern regarding Tribal allocations to non-profit organizations through the County. He presented a document that indicates it is against state law for local units of government to make donations to non-profit organizations. He also stated that the County may make a statement shortly that they will not submit two percent requests or accept two percent money for non-profits.

Chris indicated he would talk to the Tribe's attorney about this. He also indicated he did not feel the Tribal Council would do anything that puts local units of government in jeopardy of violating any state law.

Chris suggested that we prepare and submit to the Tribal Council a statement concerning our relationship with them in the past, currently and in the future.

Dick then mentioned the need for certain replacement items at the CRC. Both Paul and Mike stated that the City had previously submitted two percent requests for these items.

Chris stated that the Council does not feel the CRC is a priority and they have already given a fair amount of money for the project.

Dick mentioned that the County may rescind their resolution calling for all local units of government to allocate 20 percent of their two percent money for the CRC.

Dick also expressed a desire to provide recreational opportunities for children in the county. He stated the County spends a lot of money on troubled youth, but has very little available for the rest of the youth. Paul mentioned the recently-awarded 21st Century grant for school-aged children after school and summer programs. Funds totaling $5.1 million will be available over three years. He stated that maybe we could expand the program into the county with the use of two percent funds.

It was decided that it would be good to have elected officials attend a session conducted by a Tribal Member on Tribal culture. Al said he would work with Sue Smith and the Diversity Committee to schedule such a program. Chris suggested that Sue work with him on this project.

Chris stated he would try to schedule a meeting with the Tribal Council for June.

The next quarterly meeting is scheduled for April 24th at 2:00 p.m. at the Isabella County Building.

The next City-County meeting is scheduled for 2:30 p.m. on Friday, March 9th, at the County Building.

PLP/je

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