10/10/2024 - Northport Village | Council Approves Water Rate Hike, Infrastructure Projects — Northport Village

Summary

The Northport Village Council met on October 10, 2024, with all trustees present. The council approved the September minutes and agenda, ratified a loan documentation agreement with NLTUA, approved a paving contract for the South Shore culvert, ratified a certificate of deposit for the Tree Committee, authorized the E-Dock sidewalk repair project at the Village Marina, and adopted a phased 20% water rate increase along with related budget amendments. The council also discussed the Social District map, the Halloween Hotdog event, and an ongoing dispute over property commitments on Park Drive. Bills for September totaling $116,494.23 were approved for payment.

Public Comments

Mike McMillan praised the village's handling of the Leelanau Uncaged event and suggested involving the township in future events.
Anne Harper spoke twice during the meeting in support of maintaining the 15 mph speed limit on Bay and Rose Streets, citing pedestrian safety and the lack of sidewalks. She also asked whether the Capital Improvement Plan considered adding a sidewalk on Rose Street between 2nd and 3rd Streets, and proposed that the village explore providing public WiFi downtown, noting that the library's WiFi is not available 24/7.
Karl Wizinski, representing Three Rivers Properties, expressed frustration that the village had not fulfilled a December agreement regarding the Mitten property, including providing quitclaim deeds for the brewery property and an adjacent property, and relocating a road. He stated none of these actions had been completed and asked the council to acknowledge the unfulfilled commitments regarding the Park Drive property line.

Parks and Recreation Matters

The council discussed the upcoming Halloween Hotdog event on October 31st, confirming it would run from 4:30 PM to 7 PM (adjusted from a previous 4 PM start due to school dismissal timing), with setup beginning around 4 PM. Trustee Harper agreed to provide grills, and volunteers were requested to help with setup.

Trustee Gale, representing the Tree Committee, reported that the committee requested staff invest unused tree fund monies into a certificate of deposit to earn additional interest since no tree planting was planned for several months. Trustee Gale moved, supported by Trustee Cook, to ratify staff signatures and actions implementing the banking resolution for this CD, dated September 18, 2024. Roll Call Vote: Yeas (7), Nays (0), Motion Carried.

Infrastructure Projects

NLTUA Loan Documentation: The council formally documented a prior agreement deferring NLTUA's debt service payments to the village, which earns 2% interest and is due in 2028 (the year of the final sewer bond payment). Village Manager Dyer clarified the council was ratifying, not creating, this agreement, as requested by auditors. Trustee Gale moved, supported by Trustee Ager, to approve the Capital Improvement advance agreement and authorize the Village Manager to sign. Roll Call Vote: Yeas (7), Nays (0), Motion Carried.

South Shore Culvert Paving: DPW Superintendent Chris Holton emphasized urgency due to contractor availability and plowing concerns. Trustee Ager moved, supported by Trustee Gale, to accept Team Elmer's proposal dated 9/24 for $6,300 for the targeted scope of work in area three of the South Shore culvert, authorize the Village Manager to sign contracts, and transfer $6,300 from the General Fund balance to Capital Projects in the Local Street Fund. Trustee Cavendish confirmed the amount covered only the specific requested work, not the full original proposal. Roll Call Vote: Yeas (7), Nays (0), Motion Carried.

E-Dock Sidewalk Project (Marina): Village Manager Dyer explained that approximately 130 linear feet of a 10-foot-wide sidewalk at the Village Marina had deteriorated due to wave action and groundwater seepage. Third-party repair estimates exceeded $50,000, but DPW staff developed an in-house plan with a local contractor providing concrete work for no more than $11,000. Trustee Conley moved, supported by Trustee Harper, to authorize the Village Manager to proceed with construction and contract with a third-party concrete vendor not to exceed $11,000. Roll Call Vote: Yeas (7), Nays (0), Motion Carried.

Water Rate Study and SCADA System: Village Manager Dyer presented recommendations from a Water Rate Study by Dawn Lund of Utility Financial Services, LLC, proposing phased 20% annual rate increases beginning in FY2024-2025. This would raise the residential base rate from $36.00 to $43.20 per quarter and usage fees from $1.40 to $1.82 per 1,000 gallons, an estimated $18,742.16 annual revenue increase. Dyer also noted the need for a new SCADA system for the water distribution network, estimated at $10,000, with a request for up to $12,000. Trustee Gale moved, supported by Trustee Harper, to adopt the Water Rate Study recommendation, increase water rates by 20% effective with October 2024 billing, increase the water fund revenue budget by $19,000, increase the water fund capital expense budget by $12,000, increase the water fund balance by $7,000, and authorize a SCADA system contract not to exceed $12,000. Trustee Ager asked about constituent feedback; Dyer said comments were informal and that rates remained low compared to other communities. Roll Call Vote: Yeas (7), Nays (0), Motion Carried.

Other Business

The Village Manager reported meeting with Kathy Firestone and family regarding replacement of the flagpole plaque, which the family will fund.
A map of the proposed Social District was shared; once approved, information will be published on the village website.
The Planning Commission (Trustee Gale reporting) completed a review of the Capital Improvement Plan project list using established criteria; results will be presented as project needs and budget allow.
The council discussed revising the Social District map to include only the sidewalk area, excluding residential structures, and agreed to improve signage, public education, and tighten the management agreement following confusion during the Uncaged event.
The 15 mph speed limit on Bay/Rose Streets was debated; Trustee Cook proposed raising it back to 25 mph citing the new 4-way stop and low compliance, while other trustees favored keeping it at 15 mph for pedestrian safety. The council decided to revisit the issue and gather constituent feedback before the next meeting.
Trustee Ager raised the status of promised trash pickup for the year; Village Manager Dyer said discussions were underway, though Ager noted she missed the prior discussion.
Trustee Harper questioned the need for public WiFi given strong 5G coverage, but supported addressing related Park Street issues, including legal encroachments (a locked gate, unauthorized plantings) and urged retroactive approval or removal of landscaping in the creek bed.
President McCann agreed with Harper on resolving Park Drive issues and commented on overall improved village management over the past two years.
Trustee Conley followed up on stones placed in the creek near 2nd Street, confirming the issue occurred and that the village is assessing action; she also asked about utility assistance administration, which Dyer said had not yet been addressed due to audit preparation (now completed).

Financial Summary

South Shore Culvert paving: $6,300 approved, transferred from General Fund balance to Capital Projects in the Local Street Fund.
E-Dock Sidewalk Project: concrete contract not to exceed $11,000; other costs covered by existing budget.
Water rate increases: base rate up from $36.00 to $43.20 per quarter; usage fee up from $1.40 to $1.82 per 1,000 gallons; estimated $18,742.16 additional annual revenue.
Water fund budget amendments: revenue budget increased by $19,000; capital expense budget increased by $12,000; fund balance increased by $7,000.
SCADA system replacement contract authorized not to exceed $12,000.
NLTUA deferred payments earn 2% interest, due in 2028 alongside the final sewer bond payment.
September bills approved for payment totaling $116,494.23.

Action Items

Village Manager to sign documents finalizing the NLTUA Capital Improvement advance agreement.
Village Manager/DPW to execute the Team Elmer's paving contract ($6,300) for the South Shore culvert before asphalt contractors become unavailable.
Village Manager to contract with a third-party vendor (not to exceed $11,000) and complete the E-Dock sidewalk project this fall.
Village Manager to implement the 20% water rate increase effective October 2024 billing and contract for SCADA system replacement (not to exceed $12,000).
Council to revisit the 15 mph speed limit on Bay/Rose Streets at the next meeting after gathering constituent feedback.
Village Manager to provide an update on the status of promised trash pickup for the year.
Village to investigate feasibility and cost of public WiFi downtown, as proposed by Trustee Harper... (proposal made by Anne Harper during public comment, not yet a council decision).
Village to address unresolved Park Drive property issues, including the quitclaim deeds and road relocation raised by Karl Wizinski, and legal encroachments (locked gate, unauthorized plantings) noted by Trustee Harper — flagged as an ongoing area of dispute between the village and private landowners.
Village to determine action regarding stones placed in the creek near 2nd Street.
Village to explore utility assistance administration, per Trustee Conley's inquiry.