Ontonagon's budget, former-manager woes deepen; New management team seeks to make corrections
The Ontonagon Village Council held a budget workshop on March 4th. Budget matters were discussed at some length, but the most distressing items were discoveries that have been made in the wake of the termination of the village manager’s employment. These were, in part, as follows:
• The Deficit Elimination Plan did not have an approved budget for the Marina Fund. An approved budget must be in place by March 26, 2021, and if the Treasury Department doesn’t have this, the village could lose 25% of its State revenue sharing money (about $35,000).
• CRLGG Grant: This is the COVID-19 program money. There was a deadline of Jan. 18, 2021, to submit the closing certification for this grant and this was left undone. An email that was sent to and received by former village management detailing the issue and a new deadline of March 5, 2021, was summarily ignored. The village office staff has now completed this obligation and submitted it on March 1, 2021. If this had not been caught in time, the village would have had to pay back $8,000 of the CRLGG grant.
• MERS Payments: The village currently owes $125,749.54 in back payments. Village management had received notice of this on Jan. 25, 2021, explaining that a payment was due on Oct. 20, 2020. The council had also been sent this letter, but this information appears to have been withheld.
• ACT 51 Street Financial Report: Village management received an email communication from Laura Loomis which was received on Dec. 4, 2020, stating that a report was due on Dec. 31, 2020. This was ignored.
• Paddlecraft Landing Grant: This project has been rife with criticism from several persons in the community. The village spent about $110,000 on this development. This was a DNR grant, but the village was not reimbursed because the grant closing documents were not completed. Numerous emails were sent to village management from October of 2019 to April of 2020 requesting completion of the grant documentation. The village office staff has now been in contact with the MDNR and $46,000 is still available to finish this project and they have agreed to reopen the grant as it has been allowed to expire.
• Lakeshore Lighting Grant: The MDNR advised the village that there is still $4,500 available for the Lakeshore Drive lighting grant. This will be followed up by village office staff.
• Marine Dredging Grant: There was a shortfall in the marina fund because the paperwork for this grant has not been completed. The audit received by the village in December of 2020 made this information available but there had been no attempt to correct the matter. The grant expired on Dec. 31, 2020. Thanks to Acting Clerk Cori Weisinger, the deadline has been extended to Dec. 31, 2021, and the village is entitled to recoup $174,681.
• MDNR Grant for re-culvert and proposed footbridge over the slough (Rose Channel): This was a pass-thru grant from the DNR with no cost to the village at all. Village management had not responded to information requests from the DNR and this is due on March 12. The village would have lost this grant if George Madison of the MDNR had not contacted the village after learning that the village manager had been discharged. This project is again viable.
• Past Due Water Bill: A large commercial water customer is said to owe the village over $100,000. Tanya Weisinger had brought this matter to village management’s attention in 2017, but nothing was done to resolve this issue.
Clerk William DuPont added that in following up on other information that is becoming available, it appears that ignored emails and other notices, that that were received and opened, were not reported to the village council. It appeared that information may have been withheld or concealed.
Clerk/Treasurer DuPont commended Kori Weisinger and Tanya Weisinger for bringing these and other matters to the attention of the council. Council then took the necessary step to change the village management.
The village council met again on March 8 via telecom at 6 p.m. The first order of business was to swear in the new trustee which was accomplished and the new member of the council was officially “seated.” Mike Rebholz took the oath. Mike Mogan was not on the call.
Before addressing the agenda, the floor was opened for public comment.
Sue Lockhart, a non-resident, responded to the invitation to speak. She asked how missed payment to MERS could have been missed? She charged that President Smydra should have known about this as he signs all the checks. She asked if there are interest and penalties on unpaid bills, and she also asked about the lawsuit with Hilton Marine. She pressed the inquiry of how all of these items could have been missed. Lockhart suggested that it may be discovered that there is actual money missing. She felt that she has warned the council of many of these things that have come to light but that the Council rejected her warnings.
Smydra responded by stating that the Village President does not, in fact, sign any checks so that Lockhart’s charges and the previous statement were untrue.
Robert “Skip" Schulz interrupted and was declared out of order as he had not given his address. Schulz complied with this requirement and then Smydra asked Schulz if he was speaking as a village resident or as an employee of the Daily Mining Gazette. Schulz’s response was unintelligible. Schulz now charged that Smydra has misinformed the public about Jessica Huntzinger being sworn in. Huntzinger defeated Schulz in the November 2020 election. Schulz's outburst then became emotional, and, as his allotted time was over, he hung up. President Smydra addressed the charge that Huntzinger was not legally sworn in after her election. Documentation was provided to the effect that Huntzinger was indeed sworn in. It was also pointed out that for the months these allegations were being made on social media and other places, no one had ever actually approached the village to determine if Huntzinger had been sworn in or not. It would appear that this matter is now at rest.
Under “unfinished business” on the agenda; the continuing issue with the Municipal Employees Retirement System (MERS) related to the pension obligation for former Ontonagon Memorial Hospital employees.
The village has past-due payments to MERS in the amount of $125,749.54 which was due on Nov. 20, 2020. Village Treasurer William DuPont stated that in his opinion, this information was withheld from the council. Clerk/Treasurer DuPont advised the council that he feels it is imperative to make the November payment as soon as possible and he also recommended that the council increase the budgeted amount of MERS payments from $400,000 to $440,000 for the fiscal year ending on March 22, 2022.
Treasurer DuPont felt that the MERS issue is of primary concern and feels that payments must be made promptly to demonstrate to the State and pension fund that the village is doing what it can to meet this obligation.
Staffing Changes
In view of the dismissal of the village manager, it was recommended that William DuPont be appointed interim village manager. This was moved by Rebholz and approved on a roll call vote.
Kori Weisinger, who was serving on a contract basis to assist in the transition to a new clerk/treasurer, is to be moved to the status of a temporary employee. Her rate of pay will decrease as a result of this change in status. This was moved by Marks and this was carried.
Tanya Weisinger, who has been serving as payroll clerk and water clerk will have a change in title and commensurate responsibilities to become the office manager. There is no increase in wages. This was moved by Marks and carried on a roll call.
President Smydra added that with a new administration in the village office, things such as overdue payments will not happen again.
Rich Ernest, President of the Downtown Development Authority reported that at a meeting of the DDA a number of projects were listed to be considered. The most visible projects will be concentrated on:
• The Lakeshore Park; grading and preparing the ground for setting up volleyball courts. $2,500 needed. Grass should be planted in early May.
• Railroad yard site improvement; A general clean-up and disc and grade work. $2,500 would cover this cost.
• Several downtown buildings need to be addressed. Siding is falling off the buildings creating a hazard for pedestrians. Specifically, the old Hawley House Hotel and an adjacent bar are of concern.
• Street signs that need replacement or updating. Several street name signs are entirely missing or unreadable.
• A community cleanup is being planned to clean the sidewalks, de-weed the curbs, unbridle the trees that are being restrained by the iron grates, etc.
• The floating docks on Rose Island have been out of the water for two years, for no good reason. They should be back in the water before Memorial Day. President Smydra said that the Department of Public Works crew will examine the docks in preparation for getting them back in the water, and putting out the benches and tables.
• Lights on the Elmer Weber Nature Trail boardwalk on Rose Island are broken and need to be repaired to light the walkway.
• The street extension that was to be done by 2019 leading to Lakeshore Park near the VFW post should be started. Smydra said that Street Funds can be used for this.
Ernest also mentioned the need for volunteers. Those wishing to help may contact Ernest at the DDA.
• 2020-21 Budget Approval: Treasurer DuPont (now Interim Manager) asked for the budget to be approved, subject to amendments. This was moved by Rebholz, supported by Hopper, and carried. This will be submitted to the State of Michigan.
• Announcements: A letter was received from McDonald and Wolff regarding the termination of Joe Erickson. This was referred to the Personnel Committee.