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.

Ontonagon Village Council fills two seats

The Ontonagon Village Council met on Feb. 22 and the headline of the meeting was to fill two vacancies on the council. It is a story unto itself how the vacancies occurred. Prior to the November 2020 election, Trustee Michael G. Mogan announced plans to leave the community and resigned his seat as of the end of the year. This left a partial term available and Jessica Huntzinger filed for election. After the deadline for filing Robert “Skip” Schulz filed as a write-in candidate for the same seat. Huntzinger was elected by a landslide with Schulz receiving fewer than 40 votes, however Huntzinger had a change in employment plans (she is a traveling nurse) and though she was sworn in to serve, she resigned her new seat. Schulz almost immediately started a campaign to be appointed to the vacant seat as the only other candidate who had run. The village council, however, has a policy to advertise the vacancy and then appoint whomever fills the qualifications and is recommended by the personnel committee. 

Schulz applied, and in his letter of application stated and charged, “While I highly doubt I will be appointed as I agree with many citizens in our Community that the resignation of Ms. Huntzinger was known BEFORE the election in a way for the Council to appoint one of their friends....”.   Schulz had unsuccessfully run for council on two previous occasions. Schulz is a reporter for the Daily Mining Gazette.

There were two other applicants, Mike Rebholz and Michael G; Mogan, who had changed his plans to leave the area and applied for his old seat.

Also to be filled was the unexpired term of Maureen Guzek, publisher and editor of the Ontonagon Herald, who passed away unexpectedly in January following heart surgery.

The council appointed Rebholz and Mogan to the two vacancies, based on the recommendation of the personnel committee.

 Other council business included a review of the village audit, a discussion regarding the needed repairs to a walkway approach to the east pier at the harbor, and adoption of a resolution reinforcing support for the pension liability for former employees of the Ontonagon Memorial Hospital, which is now operated as Aspirus Ontonagon Hospital.  The pension costs have risen radically and now consume over half of the general fund revenue of the Village.

Original Comments:

Joshua

The thanks really belongs to Bruce! He pestered me about including Ontonagon, and when I explained how difficult that would be for me, he started sending in the stories, too.

Susan

Thanks for covering Ontonagon.

Ontonagon Village approves sidewalk dining, sewer line correction

At their May 10 meeting, the Ontonagon Village Council approved Syl’s Cafe for sidewalk dining this year again. Last year the outdoor dining saw good use and the restaurant wants to offer it again this year. Approved dates are May 25 to Sept. 6.

 Interim Manager William DuPont presented a brief report and update, in part, as follows:

•  The documents for the forthcoming audit are due on June 1, and the interim manager foresees no problem in gathering this information on time. The audit is expected to be completed by July 1. DuPont reaffirmed that his priority is to have the village’s financials where they need to be. Council can expect to receive relative financial statements by July 1 and every month thereafter.

•  One more auditor’s finding, as reported in the 3/31/2020 audit has been addressed but DuPont reported; “We are still bogged down in issues that we have  frequently uncovered but once we get through these, we will make solid progress.”

DuPont added; “I feel good about the direction the village is heading and we will do our very best to resolve any outstanding issues.”

It was moved by Councilor Donald Chastan to approve the Interim Manager’s report and carried.

The Village of Clinton had sent a letter dated March 10 inviting the Village of Ontonagon to become a participant in a class action suit against the mandate of the State of Michigan to require municipalities to pay for replacement of specified water lines on private property. They claim this is contrary to General Law Village Charter.

If the legislature is unwilling to change the law(s) involved it may be necessary to take legal action against the State of Michigan. Ontonagon was asked to pledge $2,500 as a share in the legal costs of such a suit.  At issue was whether or not it is legal for one municipality to donate to another community to carry on litigation of this nature.

In the opinion of the Michigan Municipal League, this would be quite legal and further more the MML  would like to see this matter considered by the courts. The village was advised, however, to consult with its local attorney if there is any uncertainty in the regard.

A recent  communication from the Village of Clinton updates the matter in their taking a “different route.” Further action was tabled until matters develop further.

Two bids had been received for installation of the new lift station on Tin Street, as follows:

Northland Electric, $125,531

FA Industrial Services, $187,166

The review of the bids by GEI (engineers) found that both bidders satisfied the requirements. It was recommended that the contract for the 2021 Tin Street Lift Station be awarded to Northland Electric.

It was moved by Councilor Mike Rebholz to accept the Northland Electric bid for the amount listed and this was carried.

A proposal by GEI was considered, in response to the questionable installation of sewer service for the Kulis residence on Gorman Avenue.  The project had been authorized by the former manager but was not supervised by a certified engineer and the property owner whose parcel the new sewer line was to serve had serious doubts about the installation. After investigating the situation, the interim manager recommended correcting the problem.  GEI Consultants presented a proposal to provide professional engineering services to install 300 feet of 8” sewer main. This is for the design work only and not for the actual construction. The project could total up to $15,000.

It was moved by Trustee Elmer Marks to make matters right by approving the GEI contract for the Gorman Avenue sewer line installation and this was supported by Sarah Hopper and carried.

The US Coast Guard will be holding a free boat inspection on May 13 at 1:30 p.m. at the marina pavilion.

Rebholz reported that he has applied for three sizeable grants:

  -Marina Travel Lift: $373,725.00

  -Turnout gear washing for the fire department    $  16,134.00

  -Rescue truck also for the fire department, $227,995.00

Ontonagon village fires manager in split vote

On Feb. 25, at the special meeting of the Ontonagon Village Council, Joseph Erickson’s employment as the village manager was terminated on a split 3-2 vote.

The council emphasized that the termination, “with cause,” was in reference to Erickson’s alleged mismanagement of a $282,000 Michigan Department of Natural Resources grant, which had partially paid for the dredging of the Ontonagon Village Marina. A recent audit revealed a shortage in the marina fund of $119,000. It appeared that the manager had failed to complete the paperwork to receive the final payment from the MDNR. 

An MDNR official was contacted and indicated that he had reached out to the manager on three occasions about this matter and had received no response.  The deadline for final submission of the paperwork was Dec. 31, 2020.

The MDNR agreed to amend the closing date of the grant so that the village can recoup the grant funds and the council passed a resolution accepting the new terms.

A heated discussion followed the adoption of the resolution and this matter as well as other past issues with the manager. Trustee Sarah Hopper introduced a motion to terminate the Erickson’s employment, with cause, and this was supported by Trustee Donald Chasten.

Erickson, speaking in his own defense, pointed to several projects he has completed successfully, his preoccupation with the Village MERS (pension liability) issue,  the many meetings he must prepare for, and his very busy general work load.

Trustee John Hamm spoke against firing the Erickson stating that even with his faults, he is one of the better managers the village has had.  Trustee Elmer Marks suggested some disciplinary “time off” and added that everyone forgets things once in awhile.  Marks also pointed out that a “full council” was not present. The council is short two members due to a resignation and a death, and though replacements have been appointed, they will not be seated until March 8. (see previous article Late Edition Feb. 28) 

Marks suggested not voting on this matter until that time, however, the motion was already on the floor.

President Tony Smydra, indicated that a legal quorum was present, and as there was an obligation to vote on the motion, he called the question. The final vote was Aye; Hopper, Chasten and Smydra. Nay; Hamm and Marks. The motion was carried.