May 26th Council Meeting Minutes
TOWN COUNCIL MEETING
MAY 26, 2016 6:00 P.M.
SHIPSHEWANA TOWN HALL
345 N. MORTON STREET
SHIPSHEWANA, IN 46565
PRESENT: Council; Roger D. Yoder, Lynn M. Bontrager, J. Mike Wilcher, C. Arlene Lazzaro, Elmer J. Mast.
Staff; Mike Sutter, Kurt R. Bachman, Ruth Ann Downey. Public; Guy Thompson, George Bachman, Dan Byler, Leroy Steury, Carl J. Lazzaro, Marvin Yoder.
Council President R. Yoder called the meeting to order, noted that all Council Members were present, welcomed everyone, and asked them to sign in. Agendas were available.
INVOCATION & PLEDGE: J.M. Wilcher gave the invocation and L. Bontrager led the pledge.
MOTION: C.A. Lazzaro made a motion to accept the agenda with flexibility. L. Bontrager seconded the motion. Motion carried.
- Yoder asked for corrections or additions to the May 12, 2016 Council meeting minutes.
MOTION: E. Mast made a motion to approve the May 12, 2016 Council meeting minutes as presented. J.M. Wilcher seconded the motion. Motion carried.
PUBLIC HEARING ARI EASEMENT CONVEYANCE
- Yoder officially opened the public hearing portion of the meeting and asked the Town Manager to explain the need for this Public Hearing. M. Sutter reported that this easement is currently between two parcels of property owned by ARI/CRS Investments LLC. Historically there may have been the possibility of a road extension, or this may have been a utility easement. Today there are no indications of any Town Utilities on this easement. LaGrange County REMC has some utilities in this easement but it is my understanding that they are already working with ARI to move those lines. The Town has no need for this easement and the recommendation is to vacate the easement. R. Yoder asked for input from the public. There being no public input R. Yoder closed the public hearing portion of the meeting.
LAGWANA PRINTING SEWER SERVICE: D. Byler of LaGwana Printing passed out a photo of the proposed building to Council Members. D. Byler reported that they are currently renting two locations and would like to build in the area of 250 N & 850 W. This building will offer both office and production space. The site plan has been presented to the County and placement of the building allows for future expansion. D. Byler passed out an e-mail sent to Mike Sutter and Steury Builders dated May 26, 2016 and pointed out that he has been talking with Mike Sutter regarding hooking into the Town’s sewer system. Discussion followed. D. Byler pointed out that the Town does not pay for the infrastructure, and state law requires that I hook into the sewer line. Discussion followed regarding easements and the possibility of development on the North West corner of 250 N & 850 W. D. Byler reported that he is working with Ryne Crock of the Lagrange County Economic Development Corporation regarding a tax abatement. D. Byler is willing to sign a no remonstrance to annexation agreement as long as the balance of the abatement would be honored by the Town if the annexation takes place within the 10 year abatement period. M. Sutter pointed out that standard policy is that the developer puts in the infrastructure and still pays connection fees. The policy has been established and to waive the fees could set a new precedent. Discussion followed regarding the requests made, easements, and once the sewer line is extended whose line is it. M. Sutter pointed out that it would be D. Byler’s line unless the line is turned over to and accepted by the Town. Discussion followed regarding the possibility of the Town owning the sewer line and entering into some-kind of Reimbursement Agreement so that D. Byler could recoup some of his costs for extending the sewer line as others connect to the line. K. Bachman questioned the need for LCRUD (LaGrange County Regional Utility District) to sign off since the proposed sewer line will be in their jurisdiction. Discussion followed. M. Sutter reported that LCRUD is aware of the development and doesn’t want them to hook into their line. D. Byler agreed with M. Sutter and pointed out that the LCRUD line in the proposed construction area is a pressurized line. Discussion followed. K. Bachman reported that the Town can give their blessing for the project but it is not in the Town’s jurisdiction, it is outside of the Town of Shipshewana corporate limits and LCRUD should relinquish their jurisdiction if they will be hooking up to the Town sewer system. Discussion followed. M. Sutter noted that he would be contacting LCRUD’s attorney regarding the jurisdictional issues. Discussion followed.
MOTION: E. Mast made a motion to give a conditional positive recommendation for the LaGwana Printing project to be located on 850 W subject to approval from LCRUD due to jurisdictional issues regarding hooking up to the Town Sewer. Conditions regarding the positive recommendation include that the developer extend the Town’s water and sewer lines at their cost, the water and sewer infrastructure meet and or exceed the Town’s specifications as approved by the Town’s engineering consultants, that all connection documents are completed and connection fees are remitted to the Town of Shipshewana, a waiver of remonstrance against annexation be signed by the property owner, Dan Byler, and are properly recorded at the County. And the Town agrees that should annexation occur prior to the completion of the 10 year County tax abatement that the Town will match the County’s tax abatement agreement for the remainder of the 10 year period. C.A. Lazzaro seconded the motion. Motion carried.
TOWN INSURANCE RENEWAL: R. Downey referred Council Members to the Insurance and Risk Management Proposal from Yoder Insurance Agency/Wichert Insurance dated May 16, 2016 and reported that she and the Town Manager had met with Brent Hoober and a Wichert representative to review the proposal. The overall increase in rates is less than 3%, and B. Hoober pointed out that the liquor liability can be removed when the lease for the Event Center is signed. One recommendation made is to increase the Town’s Umbrella Liability Policy by $1,000,000.00. The additional cost to the Town would be $550.00 per million dollar increase. Discussion followed. M. Sutter pointed out that the workers comp mod went from .82 to 1.41 and will remain at that rate for the next two to three years. Discussion followed.
MOTION: C.A. Lazzaro made a motion to renew the Town Insurance Policy as presented with no increase to the Town’s Umbrella Liability Policy. L. Bontrager seconded the motion. Motion carried.
MEC VOLUNTARY ANNEXATION: M. Sutter referred Council Members to their paperwork for a letter from Dennis Frey the General Manager of the MEC (Michiana Event Center, LLC) requesting annexation into the Town of Shipshewana. (See attached) M. Sutter reported that the MEC site plan was presented to the LaGrange County Plan Commission on May 23rd and the site plan received approval contingent on road improvements being made. Discussion followed. M. Sutter pointed out that an official petition for annexation will have to be filed with the Town to officially start the annexation process.
MOTION: L. Bontrager made a motion to accept the request for voluntary annexation from the MEC Center which will be located on the south side of Farver Street/CR 200 N, approximately 349 feet east of Van Buren Street/SR 5. E. Mast seconded the motion. Motion carried.
NORTH WATER TOWER REHAB (FINAL REPORT): M. Sutter referred Council Members to their paperwork for a report from Dixon Engineering, Inc. dated 5/13/16. Dixon has done an excellent job providing weekly reports on the North Water Tower rehab progress. This project was approximately $149,000.00 to clean, repaint, and repair the North Water Tower. All the work is done with the exception of some electrical work. The tank will be filled, the water will be tested and hopefully the tank will be back in service by June 4th. Discussion followed. R. Yoder asked if there was an invoice to approve for this project. M. Sutter reported that the invoice has not been submitted yet.
DEHUMIDIFIER PURCHASE FOR WATER PLANT: M. Sutter referred Council Members to their paperwork for quotes on a dehumidifier for the Water Plant. The current dehumidifier is 14 years old and in need of repair. Service and Support Employee, David West received a repair price of at least $1,800.00. To purchase a new humidifier from Blue Book the cost is $3,422.95. Quotes from Sylvane and AMG both came in at $3,428.00. The recommendation is go with the low quote from Blue Book. Discussion followed.
MOTION: L. Bontrager made a motion to purchase a new humidifier for the Water Plant at a cost of $3,422.95 from USA Blue Book. C.A. Lazzaro seconded the motion. Motion carried.
SEALING PARKING LOTS @ EVENT CENTER: M. Sutter referred Council Members to their paperwork for four quotes for sealing the parking lots at the Event Center. These quotes include crack filling, resealing and striping the parking lots. When the Town leases the building the Town will still own the property and building and will be responsible for repairs. Quotes were read as follows: Pulver Asphalt and Paving $33,777.45; Quality Asphalt Paving and Sealcoating, Inc. $29,463.00; Asphalt Sealcoat and Patching, Inc. $25,858.20; and Ranger Materials at $19,465.00. M. Sutter pointed out that the low quote from Ranger Materials does not include the cost of the driveway. Staff recommends that the Town go with Quality Asphalt Paving and Sealcoating, Inc. due to a more comprehensive quote, they have 26,000 feet of cracks filled compared to 16,000 feet and they put on two coats of the sealer at a cost of $29,463.00. M. Sutter reported that he does have a verbal commitment from the Blue Gate Garden Inn to share cost on the driveway since the Event Center and Blue Gate Garden Inn share the driveway which brings our cost for the project down to $27,000.00. K. Bachman pointed out that a finding must be made if you decide not to go with the low quote. Discussion followed.
MOTION: C.A. Lazzaro made a motion to eliminate the low quote from Ranger Materials due to no cost for the driveway in their quote and to go with the most responsive and responsible bidder, Asphalt Paving and Sealcoating, Inc. in the amount of $29,463.00 due to the inclusion of two coats of sealer and more cracks filled as part of their quote to do the Event Center Parking lots and driveway. J.M. Wilcher seconded the motion. Motion carried.
OLD FIRE STATION ROOF REPLACEMENT: M. Sutter referred Council Members to their paperwork for quotes to re-roof and paint the Old Fire Station which is now the maintenance/police garage. The building is in need of repair. Five quotes were received as follows: Freedom Construction Services re-roof only $11,500.00; BW Construction re-roof only with metal $24,861.00; BW Construction Waterproof Roof w/”Metal Roof Restoration System” $16,371.00; Proline Roofing re-roof with metal and paint building $12,500.00; and Double H Roofing re-roof with metal and paint building $9,850.00. Staff recommends going with the low bid from Double H Roofing in the amount of $9,850.00 to paint and re-roof the building. Discussion followed.
MOTION: L. Bontrager made a motion to approve the quote from Double H Roofing of Millersburg, IN in the amount of $9,850.00 to re-roof with metal and paint the Old Fire Station building. J.M. Wilcher seconded the motion. Motion carried.
APPOINTMENT – ANNUAL REMC MEETING AFFIDAVIT: R. Downey referred Council Members to their paperwork for a letter dated May 11th from the LaGrange County REMC and reported that their annual meeting this year is on June 11th and they request that an appointment be made for voting purposes at their annual meeting. Normally the Council appoints someone from Kurt Bachman’s office to be the representative for the Town. Discussion followed.
MOTION: E. Mast made a motion to appoint Kurt Bachman as the representative for the Town of Shipshewana at the LaGrange County REMC annual membership meeting to be held on June 11th. L. Bontrager seconded the motion. Motion carried.
HYDRANT FLUSHING SCHEDULE: R. Downey reported that Utility workers will be flushing fire hydrants on Mondays, Thursdays, and Fridays from June 13th through July 31st. When they are flushing hydrants in your neighborhood the water may appear discolored and could cause discoloration to white or light colored clothing but the water is not harmful to consume. The hydrant flushing schedule will be posted on the Town Website and a notice will be enclosed with the June utility bills. Discussion followed.
MOTION: J.M. Wilcher made a motion to accept the hydrant flushing schedule as presented with flushing to be done on Mondays, Thursdays, and Fridays from June 13th through July 31st. E. Mast seconded the motion. Motion carried.
ATTORNEY REPORT: K. Bachman reported that he had a Resolution for the Council’s consideration regarding the ARI Easement and in your paperwork you will find the Car Museum Annual Financial Report. The Car Museum held their annual meeting on Tuesday and all members were present. They formally approved the Annual Report. Roger Yoder was reappointed for another 3 year term and Esta Hostetler was appointed to fill the vacancy left by Eldon Hostetler. Per the by-laws the Annual Report must be presented to the Council. R. Downey pointed out that this report reflects only the Endowment money. M. Sutter reported after the lease option is approved for the Event Center the cost to operate the Museum will come out of the operating budget. We did not use any of the Endowment money for operations in 2015, we need to protect what is left in the endowment. Discussion followed.
MOTION: C.A. Lazzaro made a motion to approve the Car Museum Annual Report as submitted. J.M. Wilcher seconded the motion. Motion carried.
- Bachman reported that the Resolution regarding the ARI Easement is a follow up to the Public Hearing. The easement is approximately .262 acres of property between two parcels owned by ARI/CRS Investments LLC. To properly dispose of public property per statute a determination must be made regarding the value of the property; in this case the Town no longer needs the property, it is surplus property, of no value to the Town, no public funds have been expended on the property, and the Town is willing to give the property back to the grantor or in this case their successor. The property was originally donated to the Town by Dr. M. Reed Taylor. The Resolution for your consideration conveys the property to ARI/CRS Investments LLC. and authorizes the Council President to execute any and all deeds and documents to transfer the easement. Discussion followed.
RESOLUTION: President R. Yoder introduced A RESOLUTION APPROVING THE CONVEYANCE BACK OF AN INTEREST IN REAL ESTATE ORIGINALLY TRANSFERRED BY GIFT PURSUANT TO I.C. 36-1-11-14. Council Member C.A. Lazzaro made a motion, seconded by Council Member E. Mast, that said Resolution be numbered and placed on first reading, and that the same be read in full at this time. Motion carried.
Said Resolution having been designated as “III-B-1-c(8)” and having been read in full, and the provisions of the same having been considered by the Council, Council Member L. Bontrager made a motion, seconded by Council Member E. Mast, that any requirements for a second or third reading be waived and that all rules of the Council, which unless suspended, might prevent the final passage and adoption of “III-B-1-c(8)” at this meeting, be suspended and that said Resolution be placed on its final passage. Motion carried.
“III-B-1-c(8)” having been read in full was then placed upon its final passage, and on call of the roll the vote for the adoption of said Resolution was as follows:
AYES: C. Arlene Lazzaro, Elmer J. Mast, Lynn M. Bontrager, J. Mike Wilcher, Roger D. Yoder
NAYS: – 0 –
There being present at said meeting at least two-thirds of the members elect of the Town Council and “III-B-1-c(8)” having been passed after unanimous suspension of the rules, the President thereupon declared said Resolution to have duly passed and adopted.
TOWN MANAGER REPORT: (See attached list of projects) M. Sutter reported that the turn out for the Town-wide clean-up was very low, we will have another clean-up in two years. The AT & T agreement that was approved at the last meeting has been returned with signatures from AT & T for antenna space rental on the Historic/Park Water Tower. Discussion followed.
FINANCIAL REPORT: R. Downey referred Council Members to their paperwork for the preliminary Water, Sewer, and Storm Water Utility Rates Reports along with the Sustainability Analysis that has been prepared by Financial Solutions Group, Inc. Please review these reports and let me know if you have any questions or concerns. I am sure Greg Guerrettaz will meet with us and review them at a later date. There is a Thank You note from the SRMA for all the Town contributes to make Mayfest a successful event. The Town Hall Office will be closed Monday, May 30th in observance of Memorial Day. The drop box is available for Utility Customers to leave their payments or you can go to the Town website and make your payment online. R. Downey requested a motion to approve the Claims Register and Adjustment Journals. Discussion followed.
MOTION: L. Bontrager made a motion to approve the Claims Register and Adjustment Journals as submitted. E. Mast seconded the motion. Motion carried.
- Yoder asked Council Members if they had anything further to bring before the Council. Council Members had nothing further. R. Yoder asked County Council Member George Bachman if he had anything to bring before the Council.
- Bachman reported that there is a new law regarding salaried employees that will have an impact at the County level and could have a huge impact on many employers. K. Bachman pointed out that this is a Federal Law that has to do with payment of overtime to salaried employees who are not paid $50,440 annually. Discussion followed. G. Bachman reported that the CR 200 North project is moving along on schedule.
- Bachman asked about the road project on CR 200/Farver Street for the proposed MEC project and expressed the importance of CR 200 going through to 850 at some point to help with traffic flow. M. Sutter reported that it is his understanding that the MEC will be responsible for improvements to CR 200/Farver Street for the 550’ that will be their frontage and they have asked the Town to consider making the improvements west of their property to SR 5 which is approximately 350’. At this point we don’t know the cost of the project. Discussion followed. G. Bachman pointed out the importance of everyone working together.
- Yoder asked if there was any further business to come before the Council. There being no further business R. Yoder asked for a motion to adjourn.
MOTION: C.A. Lazzaro made a motion to adjourn. L. Bontrager seconded the motion. Motion carried.
Roger D. Yoder, Council President C.A. Lazzaro, Council Vice-President
Lynn M. Bontrager, Council Member Elmer J. Mast, Council Member
Ruth Ann Downey, Clerk-Treasurer J. Mike Wilcher, Council Member