February 2006 Status Report

It is my pleasure to submit my monthly status report for your review and consideration. As you know, I try to just hit the highlights in these status reports, so if you require additional information, please do not hesitate to contact me.

1. Verizon Communication Towers

As you will recall, we have an agreement with Verizon for them to build two telecommunication towers that they have given to us. We will be able to rent additional space on the towers to other users. Duane Ellis tells me that they have started construction on the towers, and in fact by the time you receive this status report they may already be erected and hopefully operational. As I have indicated before, this is a good financial arrangement for the City.

2. Fluoride

Malcolm Fox has informed me that the pump that we need to add fluoride to the water has been received and installed. MDEQ will be at the plant next week to inspect the installation. If they give us their approval, we can start adding fluoride to the water system.

3. Charter Committee

Per the request of Commissioner Joslin and the discussion that was held at your goal-setting session, the first Charter Committee meeting has been scheduled for March 7th. At that time we will discuss ways to collect information regarding a directly-elected Mayor, a possible ward system and/or a district. At this point it is difficult to say how long our information gathering will take, so I am reluctant to give any kind of a deadline for the Committee’s work. After we have had a meeting or two I will probably be in a better position to give you a possible timeline.

4. Downtown Development Board

At its regularly scheduled meeting last Friday, one of the items discussed was the recommendation from the Property Owners Association to revert back to our old formula for this year’s special assessment. As you will recall, we postponed further discussion of this matter until your first meeting in March. At their February 17th meeting the Downtown Development Board voted to support their recommendation. We will provide you with additional information when this item is on the March 13th agenda.

5. Neighborhood Enterprise Zone

As you know, the Commission has been quite interested in developing a program that would help promote the conversion of rental dwellings into owner-occupied dwellings. Tony Kulick and Dave Rowley have been doing some research and have come upon the Neighborhood Enterprise Zone Act of 1992. This Act appears to provide a tool to grant local tax abatements for up to 12 years for persons who would purchase homes in the designated zone. I have attached to this document an overview of the Act which spells out how it is implemented and how it works. We are seeking your input on this program to see if it is something you would like us to explore in more detail.

The only downside is the cap on the value of the homes. As you can see from the overview, the Act is for properties that have a true cash value of less than $80,000. This probably would not work well for those properties north of High Street, but may work in other parts of the City. Your thoughts on this matter would be appreciated, and if there seems to be enough interest, we can talk about it further in a work session.

6. Project 2000 Tax Case

All of the briefs have been submitted to the Supreme Court and we now await a hearing date. Our attorney, Dick Figura, felt that it should be before summer, so hopefully it will be in the very near future.

On another note, I received a phone call last week from a staff member of the Michigan Municipal League’s Legislative Office in Lansing. They have asked me to make a presentation at the upcoming League Taxation Committee’s meeting on February 24th. They have allotted 15 minutes for a presentation on our situation and hopefully some input as to what legislative action may be taken if our appeal is not successful. In my next status report I will let you know how that meeting went.

7. Brush Pick-Up

As you know, we had some damage from this most recent ice storm, particularly with downed wires and damage to trees and tree limbs falling, etc. We have been picking up downed limbs and branches this week and are asking everyone to get those out no later than the 26th so we can make our final pass next week. It is important that we collect them as quickly as possible so that when future snow falls we are not plowing all of those branches and limbs under snow where they will sit for the rest of the winter.

8. Ranney Well Repair

As you may recall, we have had some settling of the well building at the Ranney Well. We are in the process of working with the bidder’s engineers and our consultant in getting approval for a piling system that will stop the settling of the building. As soon as they agree on a design, the contractor can begin work.

9. Annual Audit

The annual audit began Monday, February 20th. The auditors will be here for approximately two weeks. As you may recall, they submit their report to us but Mary Ann Kornexl actually puts the audit document together. This has resulted in quite a cost savings to the City over the years. The auditors met with the Audit Committee on the 20th to seek their input on any issues the Committee would like them to focus in on for their review of the 2005 financial statements. As has been our practice, when the audit is completed, representatives of the audit firm will come before the City Commission to present their findings.

10. Access Management Plan For Mission And Pickard Streets

You may recall that the City had submitted a letter of support to MDOT to have a consultant hired to prepare an access management plan for the Business 127 and M-20 corridor through the City. MDOT has approved the funding and hired Progressive and LSL to perform the work.

A kick-off meeting was held with the consultants the third week in January. They will be working with the City, Union Township, Isabella County Road Commission, and Isabella County Planning Office to develop the plan. It was also suggested that the Chairs of the City and Township Downtown Development Authorities and Planning Commissions also serve on the steering committee. Tony will make contacts to seek their attendance at the meetings.

Tony also informed me that new aerial photographs for the Mission/Pickard/High Street corridors were taken the second week in January. He also advises me that participating jurisdictions within the County will receive the following:

• large presentation graphics
• a final report with recommendations for the corridor
• model zoning ordinance changes to implement the plans

It is hoped that the report will be completed some time this fall.

11. Chambers Sound System

MAC3TV and a consultant spent Friday afternoon and evening looking at our audio-visual system in the Commission Chambers. The consultant found that the wiring used to hook up the sound system was video wiring and not audio wiring. Hopefully the combination of an improved audio board and installation of the correct type of wiring and new microphones will improve the on-air and playback sound quality. We also hope to see some improvement in the video quality as a result of repairs to one camera and installation of a third camera. We will get a better feel at our next meeting.

12. Zoning Classification On Assessment Notices

A year or so ago Commissioner Joslin suggested we put a property’s zoning classification on the assessment notice for that property. We tried to do it this year, but our GIS system and assessment records did not jibe. This resulted in some assessment notices having a blank for the zoning classification. We were concerned that this might cause some confusion; therefore, we decided to fine tune the system and then start it next year.


13. Public Safety Officer

A few weeks ago we received a letter from an elderly couple complimenting Officer Dave Sabuda for his extra effort to solve their problem. This past Christmas one of their neighbors had a party and someone backed into and knocked over their mailbox.

Officer Sabuda offered to and then installed a new mailbox and post, and even set it in concrete for them. According to the couple they now have “the coolest” mailbox in the neighborhood. They are quite pleased with the extra effort Officer Sabuda put into this matter. My compliments also to Officer Dave Sabuda for a job well done.
 

Owner-Occupied Residential Incentive Program
Overview

I. Program Incentive.
The objective of the program is to increase the number of owner-occupied dwelling units in the City of Mt. Pleasant by issuing Neighborhood Enterprise Zone certificates for up to 12 years. The certificates have the effect of reducing the tax on those properties by one-half.
II. Program Implementation.
1. Identify target neighborhoods.
a. Neighborhood Enterprise Zone must contain at least 10 platted lots and be compact and contiguous.
b. Eligible properties may not have a true cash value over $80,000 per unit.
c. Eligible applicants must invest a minimum of $3,000 to $5,000 to bring the property up to code.
d. The Neighborhood Enterprise Zone cannot exceed 15% of the total acreage in the city.
2. Prepare a map showing the location of residential properties having a true cash value of less than $80,000.
3. Map potential target neighborhoods and calculate areas.
4. Promulgate local rules for certificates.
a. Rule #1: Certificate only for rental to owner-occupied, OR
b. Certificate to owner-occupied to owner-occupied within the district.
c. Other.
5. City Commission Action.
a. Not less than 60 days prior to passage of a resolution: Clerk notifies the assessors of the governing body of each taxing unit that levies ad valorem of the proposed Neighborhood Enterprise Zone.
b. Prior to adoption of resolution, City Commission makes a finding that the proposed Neighborhood Enterprise Zone is consistent with the master Plan and the neighborhood preservation and economic development goals of the local government.
c. Prior to adoption of a resolution, the City Commission also must adopt a statement of the local unit’s goals, objectives, and policies relative to the maintenance, preservation, improvement and development of housing for all persons regardless of income level living within the proposed Neighborhood Enterprise Zone.
d. Prior to adoption, the City Commission must adopt a housing inspection ordinance that, at a minimum, requires that before the sale of a unit in a new or rehabilitated facility for which a Neighborhood Enterprise Zone certificate is in effect, an inspection is made of the unit to determine compliance with any local construction or safety codes and that the sale may not be finalized until there is compliance with those local construction safety codes.
e. The City Commission shall hold a public hearing not later than 45 days after the date the notice is sent but before action upon the resolution.