Belleville OKs expired DDA agreement, 2017/18 DDA budget

The former maintenance agreement between the City of Belleville and the Belleville Downtown Development Authority expired more than two years ago and a new agreement was needed.
At Monday’s regular meeting of the city council, City Manager Diana Kollmeyer explained that she and DDA Coordinator Carol Thompson worked together to craft a new agreement. She said they talked about the amount of time it takes the city’s DPW to do the work required by the DDA and that’s how the $60,000 flat annual fee was determined.
“This makes the city whole,” City Manager Kollmeyer said.
Thompson said a lot of time was spent researching and putting the numbers together.
After a lengthy discussion, the council unanimously approved the agreement.
Mike Renaud, who retired from the financial department at Ford Motor Co., asked the only tough questions on the agreement.
“I don’t see anything with economics,” he said of the agreement. “$60,000 for the DPW — flat for 10 years.
“I don’t know anyone who would sign an agreement like that,” Renaud said. “It just doesn’t make sense.”‘
He said the agreement spells out that if the city spends less, “We give it back to them.”
“It’s $60,000 per year, irrespective of taxes, increases to the department. We can’t automatically charge them more if it costs us more,” Renaud said.
Thompson said, they talked about this and for additional services there was a clause on additional payments. She said if it snowed four inches every day in January, “We would expect the city to come and ask for more money” for snow removal.
Renaud said the $32,000 relief for police and fire is another problem. He said the $32,000 credited for Columbia Court pays for just half a police officer.
“I know you worked hard on this, but it doesn’t mean it’s a good agreement,” Renaud said.
Mayor Conley said the city is made whole by that $32,000, which is what the city would have captured in taxes without the agreement.
“That was the trade-off years ago,” Kollmeyer said.
“You don’t think the DDA should pay more for police and fire?” Renaud asked.
Thompson said under the new state laws the DDA can’t just write checks.
“So the DDA doesn’t have to pay for police and fire?” Renaud asked.
Kollmeyer referred to legislation.
“Is everyone on the council satisfied with no increase for 10 years?” he asked.
Councilman Jesse Marcotte said it’s a five-year agreement, with automatic approval for another five years if either side doesn’t ask for a change.
“When have we had trash agreements for 10 years with no economic increase? … We’re providing a service in the DPW department… They keep getting service at 2017 rates … What if there are raises or we need to buy a new street sweeper?” Renaud asked.
Mayor Conley said it is her understanding that the city can go back to the DDA and say, “We didn’t count on this and we need to change … It’s taken a long time to get to this point.”
Mayor Conley asked Thompson to close her ears and then said, “Maybe our cost today is only $40,000 and we’re getting $60,000…”
“I’m not saying $60,000 isn’t OK today,” Renaud said.
“The parties determined this is fair … It’s for five years,” Mayor Conley said.
“With no economic increase,” said an exasperated Renaud. “I’m done. It won’t change.”
“Carol and I worked hard to determine what is fair for both sides,” Kollmeyer said.
“Do we have to wait five years?” asked Jeff Vernon from the audience.
“We don’t have to wait five years,” Mayor Conley said. “If something happens, we can go back.”
“I do believe that’s correct,” said Kollmeyer.
“I do believe that’s correct,” Thompson echoed.
Councilman Tom Fielder said he has been in favor of the DDA from the beginning, but new laws take away some of the capture and what it can be spent for.
“Mike, I appreciate your concerns,” Councilman Fielder said, addressing Renaud. “But, they have to pay off the bonds.”
In other business at Monday’s meeting, the council:
• Approved the 2017/18 DDA budget as presented. Thompson said the budget was held at the old figures until the maintenance agreement was approved and “The DDA is returning more to the city than we capture from the city”;
• Approved the Belleville Area Chamber of Commerce fireworks display by Great Lakes Fireworks on Dec. 2, but heard Paul Henning say if they don’t get $2,800 more in donations they won’t be able to afford it and it will be cancelled. They have $500 in donations, so far, he said;
• Removed from the agenda a request to hold the Jingle Bell 5K Fun Run/Walk on Dec. 2, starting at 9:45 a.m. at the gazebo in Horizon Park on High Street. No one from the Van Buren Public Schools Education Foundation was present, so it was placed on the Nov. 27 meeting agenda;
• Approved a resolution honoring Pioneer Landscaping for donating its services to remove overgrown shrubs and plants at the Angel of Hope in Hillside Cemetery and to plant dozens of new perennials and mulch the plant beds to beautify this special children’s section of the cemetery;
• Approved the GELC employee holiday schedule change that provides during Christmas week they will get Monday and Friday off instead of Monday and Tuesday;
• Approved a special meeting for 6 p.m., Monday, Nov. 13, to discuss medical marijuana with the city attorney and the public and then to go into closed-door session to discuss a legal opinion with the attorney;
• Agreed to cancel the regular council meeting on Nov. 20 and schedule a special meeting for Nov. 27. Mayor Conley explained there was a schedule conflict that might have caused the council not to have a quorum;
• Approved the 2018 city council meeting dates, most on the first and third Mondays at 7:30 p.m., with exceptions in January and February and November for holidays;
• Approved $127,968.11 in accounts payable and the following purchases in excess of $500: to RJ Perry Construction, $1,495 for garage door repair, to MDEQ, $1,291.55 for water supply annual fee; to Wise Technologies, $810 for computer / phone support, to Osborne Concrete Co., $655 for cemetery foundations; and to Online Stores, $531.25 for flag ceremony at cemetery; and
• Learned the scarecrow awards would be at the Nov. 27 meeting, as would bid openings for work on the seawall at Doane’s Landing.