Flushing City Council

Minutes

February 23, 2009

A Regular Meeting of the Flushing City Council was called to order on Monday, February 23, 2009 at 7:30 p.m. by Mayor Janice L. Gensel, followed by the Pledge of Allegiance to the Flag and invocation.

Present: Richard L. Bade

Mark F. Brock

Janice L. Gensel

George G. Kozan

Teresa K. Salem

Michael T. Szukhent

Absent: John C. Gault

Others Present: Dennis J. Bow, City Manager

Nancy G. Parks, City Clerk/Treasurer

Edward G. Henneke, City Attorney

Excused Absence – Motion by Szukhent, seconded by Bade, to excuse the absence of Councilperson Gault.

Yea: Bade, Brock, Kozan, Salem, Szukhent, Gensel

Nay: None

Motion Carried.

Approval of Agenda - Motion by Szukhent, seconded by Salem, to approve the February 23, 2009 agenda.

Yea: Bade, Brock, Kozan, Salem, Szukhent, Gensel

Nay: None

Motion Carried.

MEETING OPEN TO THE PUBLIC:

Elva Cook, 1459 Flushing Road, addressed City Council.

Consent Agenda - Motion by Szukhent, seconded by Salem, to approve City Council Minutes (January 26, 2009 Regular Meeting), and February 23, 2009 Council Bills List.

Yea: Bade, Brock, Kozan, Salem, Szukhent, Gensel

Nay: None

Motion Carried.

Flushing City Council

Minutes

February 23, 2009

Page Two

COMMUNICATIONS:

Flushing Lions Club – Motion by Szukhent, seconded by Salem, to approve the Flushing Lions Club request to use Riverview Park on Tuesday, August 11, 2009, for the Kelly-Miller Bros. Circus.

Yea: Bade, Brock, Kozan, Salem, Szukhent, Gensel

Nay: None

Motion Carried.

REPORTS:

Michigan Municipal League – Consumers Energy Electric Rate Increase - Motion by Bade, seconded by Szukhent, to join the Michigan Municipal League’s legal defense fund with a contribution based upon the formula of .368% of the city’s total electric bill.

The Michigan Municipal League (MML), the Michigan Townships Association (MTA), and several municipalities, are intervening in a rate decision process with the Michigan Public Service Commission. Customers of Consumers Energy Company are facing a new electric rate increase, which is proposing an overall $215 million dollar rate hike, along with a proposal to eliminate the municipal pumping rate credit over the next five (5) years. This means that municipalities will face an automatic increase, each year, for those years, on top of any further increases that Consumers Energy seeks. The problem is compounded by the fact that Consumers is now grouping the various municipal service rates in with commercial customers with different characteristics from municipal customers. Consequently, municipalities are not able to offset their pumping rate increases by what should be deductions in street lighting rates.

The MML and MTA, and various municipalities intervention seeks to maintain a pumping credit and put all municipal uses together in a group of municipal rates that meet only the cost of service. This past year, the legislature enacted PA 286 of 2008, which provides for rate increases to go into effect automatically in six (6) months, unless the Public Service Commission acts within that time period to stop them. This is exactly the opposite of what has been the law for more than fifty (50) years, namely that no increased rates take effect until approved by the commission. That also means the time for intervention, and intervention response, is shorter than in the past. Municipalities are asked to contribute funds to this intervention to reduce the increase in their electric bills, significantly more than the cost of contribution.

Yea: Bade, Brock, Kozan, Salem, Szukhent, Gensel

Nay: None

Motion Carried.

Flushing City Council

Minutes

February 23, 2009

Page Three

Resolution Approving Transportation Improvements Projects – Motion by Bade, seconded by Kozan, to approve Resolution 09-0223, a resolution approving Transportation Improvement Projects for resurfacing Coutant Street from Chestnut Street to Elms Road, Seymour Road from the northern city limits to the southern city limits, and Terrace Street from River Road to Main Street.

Yea: Bade, Brock, Kozan, Salem, Szukhent, Gensel

Nay: None

Motion Carried.

BID/AWARD PURCHASES:

Construction Engineering Proposal – Drinking Water Revolving Fund Project – Motion by Bade, seconded by Kozan, to approve the Construction Engineering proposal, as presented by Rowe Professional Services Company, in an amount not to exceed $107,900.00.

Yea: Bade, Brock, Kozan, Salem, Szukhent, Gensel

Nay: None

Motion Carried.

Adjournment - Motion by Bade, seconded by Salem, to adjourn.

Yea: Bade, Brock, Kozan, Salem, Szukhent, Gensel

Nay: None

Motion Carried.

Adjourn: 8:01 p.m.

_____________________________ ______________________________

Janice L. Gensel, Mayor Nancy G. Parks, City Clerk/Treasurer