Summary
The Northport Village Council held a work session on August 7, 2025, with President Christopher McCann presiding and all trustees present. The council approved the agenda with additions for a Treasurer Position update and a FOIA request discussion. Major topics included the future of the Leelanau Community Energy monopole, an amendment to the Attainable Housing Facilities Exemption ordinance, short-term rental compliance, FY 2024-25 budget amendments, FY 2025-26 capital fund project planning, a disputed UHY audit invoice, a proposed consent agenda policy, trail sign replacement, the treasurer hiring process, and a FOIA request. No public comments were made during either public comment period. The meeting adjourned at 3:44 P.M.
Public Comments
No public comments were provided during either the initial Public Comment period (Item C) or the later Public Comment period (Item F).
Affordable Housing Initiatives
The council discussed Ordinance 141, an amendment to the Attainable Housing Facilities Exemption. Manager Jered Ottenwess explained that state statute allows accessory dwelling units to be eligible for the exemption, but current village ordinance language may not be clear on this point. Discussion focused on amending the ordinance to clarify that residential real property with up to four dwelling units used for rental purposes may qualify for the exemption, even if the owner occupies part of the property, with the exemption applying only to portions rented to income-qualified tenants. The council agreed that a simple one-reading amendment would be prepared for the next regular meeting.
Parks and Recreation Matters
Manager Jered Ottenwess raised the issue of outdated trail signs, some referencing trails no longer applicable or crossing private property without easements. Four options were discussed: (1) remove and do not replace, (2) remove and replace with upgraded signage, (3) remove and replace but exclude trails without easements, and (4) keep existing signs. The council generally supported replacing the signs and updating the trail map to reflect only valid, accessible trails. Suggestions included using QR codes for digital maps, offering low- and high-budget signage options, and involving local artists or students in the design. Ottenwess agreed to gather pricing and design options for further discussion at a future meeting.
Infrastructure Projects
Leelanau Community Energy – Monopole: The council discussed the status of the existing monopole (formerly a wind turbine) and options for its future, including removal or repurposing for solar energy. Financial history was reviewed, including a returned damage deposit and remaining funds available for a new project. Cost estimates included full removal ($30,000), partial removal ($20,000), and repurposing for solar panels (initial investment approximately $15,000 after tax credits, which the village cannot claim directly). Zoning considerations, lease terms, community feedback, and visual impacts were discussed. Several trustees expressed concerns about prior fund management and the need to seek additional bids. The council agreed to gather more information, review the lease, and explore alternative proposals. No final decision was made.
Short-Term Rentals (STRs): Manager Ottenwess reported 40-50 registered and operating properties and described recent compliance efforts, including certified letters to unregistered owners. The council discussed bringing non-compliant properties into compliance without disrupting existing reservations, and noted inconsistencies between the village ordinance and zoning ordinance (21 vs. 30 days). Other topics included potential administrative approval for special use permits, the economic importance of STRs, impacts on neighborhood character, and housing availability. The Planning Commission was tasked with reviewing the ordinances and proposing amendments; ongoing monitoring and policy adjustments were agreed to be necessary.
Capital Fund Projects (FY 2025-26): President McCann sought direction on capital projects for 2025-2026. Manager Ottenwess reviewed legal requirements for capital improvement plans, noting Planning Commission approval is required for the overall plan but not every individual project. The council discussed generating and prioritizing project ideas via staff proposals, Planning Commission recommendations, and council input. Specific priorities identified included the Rose Street culvert and sidewalk improvements. Ottenwess will compile a list of potential projects with descriptions for council feedback and prioritize based on available funds.
Other Business
UHY Invoice: The council discussed a large invoice from auditing firm UHY that exceeded the original proposal. Concerns included lack of timely communication and contract renegotiation for additional work. Clerk Joni Scott and Manager Ottenwess explained the extra charges were not justified, as UHY left fieldwork early and requested only minor additional documents, which were provided. The matter was tabled pending further review and a meeting with the township, with consensus to be cautious with future engagements.
Consent Agenda: Manager Ottenwess introduced the idea of a consent agenda to streamline routine items such as meeting minutes, bill payments, and department reports, noting any item could be removed for discussion. Council members emphasized transparency and agreed items would remain accessible in the meeting packet. A draft policy or amendment to the Council's Rules of Procedure regarding the consent agenda will be presented at the next meeting.
Treasurer Position: Manager Ottenwess reported that interviews for the treasurer position are underway, mostly by phone, to identify candidates for in-person interviews. A strong candidate has been identified; the manager will select the treasurer subject to council approval, per the manager ordinance and state law. Ottenwess plans to bring the candidate's resume, a draft employment agreement, and a resolution for approval to the next regular council meeting. Trustee Cook confirmed the position will remain full-time, and Ottenwess stated the job description will remain consistent with state law.
FOIA Request: Manager Ottenwess provided an update on a FOIA request from Mr. Haskins, reminding council members to submit any relevant texts or emails related to his representation of the village. He noted the statutory response deadline is five business days, but that the village could request an extension if necessary. Council members were asked to submit materials by noon the following day.
Council Comments: Trustee Ager commented positively on the current meeting schedule (work session at the beginning of the month, regular council meeting two weeks later), noting it feels productive. Trustee Cook expressed disappointment with the Leelanau Community Energy group and the status of the monopole.
Financial Summary
Clerk Joni Scott presented an overview of FY 2024-25 budget amendments, highlighting variances between revenues and expenses:
- General Fund: Revenues exceeded expectations, while professional services and DPW salaries exceeded budget.
- Major Streets / Local Streets: Increased winter service costs and project completions.
- Water Fund: Revenues below projections; expenses increased due to staffing.
- Marina: Transient slip revenues higher; gas/diesel sales lower; overall profitable.
- Vehicle & Equipment Fund: Expenses lower due to bond accounting changes.
- Sewer Fund (Debt Retirement): Bond payments as expected; accounting changes for receivables.
The resolution to amend the budget will reflect these changes for auditing and compliance and will be brought forward for approval at the next meeting.
Regarding the monopole, cost estimates were provided: full removal ($30,000), partial removal ($20,000), and repurposing for solar panels (initial investment approximately $15,000 after tax credits, which the village cannot claim directly). A previously returned damage deposit and remaining funds available for a new project were also referenced.
The council discussed a large invoice from auditing firm UHY that exceeded the original proposal; the charges were considered unjustified by staff, and the matter was tabled pending further review.
Action Items
- Prepare a one-reading amendment to Ordinance 141 (Attainable Housing Facilities Exemption) for the next regular meeting.
- Planning Commission to review and propose amendments addressing STR ordinance/zoning inconsistencies (21 vs. 30 days) and related compliance issues.
- Manager Ottenwess to compile a list of potential FY 2025-26 capital projects with descriptions, including the Rose Street culvert and sidewalk improvements, for council feedback and prioritization.
- Bring the budget amendment resolution forward for approval at the next meeting.
- Gather more information on the Leelanau Community Energy monopole, review the lease, and explore alternative proposals and additional bids.
- Table the UHY invoice matter pending further review and a meeting with the township.
- Present a draft consent agenda policy or amendment to Council's Rules of Procedure at the next meeting.
- Ottenwess to gather pricing and design options for trail sign replacement for a future meeting.
- Bring the treasurer candidate's resume, draft employment agreement, and approval resolution to the next regular council meeting.