Hastings City Council voted to continue discussing an agreement that would bring personal homeowner service line repairs to the city.
If agreed upon, homeowners would have the choice to opt into the National League of Cities Service Line Warranty Program. Residents would pay $6.49 per month for water and $8.49 per month for sewer to cover th cost of repairs up to $8,500.
City Manager Sarah Moyer-Cale initially recommended the program to the council during its Nov. 23, 2021, meeting. She used the same program while serving as the village manager of Paw Paw. She said she never had any issues with the company or its services.
The service line warranty program started about 10 years ago and now serves more than 1,000 municipalities across the country, including 30 in Michigan.
“The only intention in doing this is to make our customers and our residents more aware of their responsibilities for this underground infrastructure,” Moyer-Cale said in an interview after the meeting, “and to provide them with an opportunity, if they want to accept it, to have this program to help them pay for it at a low cost.”
Mike Chambers, regional account director for Home Serve, the company that runs the service line program, attended the meeting to give a presentation and answer questions. Many communities, he said, have aging water and sewer infrastructures that stretch below the city streets – infrastructure that is susceptible to breaking.
“You have these miles and miles of lines that connect to that system that a lot of times don’t get any attention until there’s an issue,” he said.
Most property owners, Moyer-Cale added, do not realize that they must cover the cost of water and sewer line repairs on their property. When the lines do break, it blindsides them.
“They don’t have, maybe, adequate savings for that kind of a repair. Or they’re not aware that their homeowners’ insurance doesn’t cover it. Or maybe the cost is below the deductible, so they have to pay for it out of pocket anyway,” she said. “Those kinds of things occur, and that can be a big headache for homeowners.”
As part of the contract, the service line program also runs an educational campaign to inform homeowners about their sewer and water responsibilities.
The National League of Cities would mail an educational letter to homeowners with the City of Hastings’ logo pasted on the header.
But the use of the city’s logo caused multiple council members to pause.
“Why don’t you just do a flyer and keep the city out instead of putting our name on there?” Councilmember Al Jarvis asked. “That’s the only thing I have a problem with.”
“If we were to mail has just the National League of Cities,” Chambers responded, “most of your residents have never even heard of the National League of Cities, so they’ll take that mailer and throw it straight in the garbage and never read it.”
The use of the city’s logo wasn’t the only issue concerning council members. Councilmember Brenda McNabb-Stange said she had a list full of issues – ranging from the company having access to homeowner data to the exclusivity of the contract.
Most notably, McNabb-Stange said she worried that the contract could open the city to a slew of legal problems.
“I spent five years writing, reviewing, negotiating exactly these types of contracts,” she said. “I worked for a company who did this for appliances in your house … and this is an endorsement by the city of this company. I think it basically exposes us to liability. I don’t think this city should be involved in telemarketing.”
Councilmember Don Smith said he agreed with McNabb-Stange, noting that the contract could use more fine-tuning. Specifically, he wants to make sure the company is bonded and if the company restructures, it must notify the city.
During the meeting, Chambers responded by explaining that the city could alter the contract as needed.
“If there are things in the contract that you don’t like, [we’re] happy to work with your city attorney – we can remove any language that you don’t want,” he said.
“... We don’t want you to participate in anything that you’re uncomfortable with.”
Following Chambers’ presentation, Mayor David Tossava called for a motion to vote on the issue. With council members still seeming uneasy, the room fell silent for seven seconds. Then McNabb-Stange spoke up.
“I’ll make a motion that we decline,” she said.
“Why don’t we make a motion to approve it and then vote it?” Tossava replied.
“OK, well, I can’t make a motion to approve it,” McNabb-Stange said.
“Either we make a motion to approve it or let it die,” Tossava said.
The room fell silent for another couple of seconds. Then Smith spoke up, suggesting the city send the contract back to staff with the changes discussed in the meeting.
The council agreed to Smith’s motion in a 6-3 vote.
Although the contract will need to be amended, Smith expressed hope that the city could find a way to make the program available to residents. He noted that the city has worked with private companies to offer services before, such as Mercy Ambulance and PCI for code inspection.
“I do think it’s a great idea for citizens. I do. I do,” he said during the meeting. “If it was just our endorsement and that was it, I’d be OK with that. But I want to make sure that we’re covered, as well.”
In other news, the council:
• Voted against the recommended salaries for elected officials, including the mayor, mayor pro-tem, city council and board of review.
The board had approved the elected officials’ salaries when it finalized its budget in July 2021. Tossava said the city normally reapproves the salaries in January.
“It’s a formality and a way of being transparent,” he said.
But the agenda item led to confusion among city officials and council members. It was defeated in a 3-6 vote after Mayor Pro-Tem John Resseguie said the salaries were inaccurate. The mayor was set to receive $8,100 per year paid monthly; the mayor pro-tem $2,600 per year paid quarterly; council members $2,500 per year paid quarterly; and board of review members $115 per meeting.
“I don’t think the numbers are quite correct,” Resseguie said during the meeting. “My understanding is that it was supposed to be a 3 percent across-the-board raise. And these numbers aren’t 3 percent.”
In a later interview, Smith said he voted against the motion because he did not understand why the council was voting on the salaries again after they were approved in July. He also said other board members might have misunderstood the agenda item – assuming it was intended for the 2022-23 fiscal budget.
“We’re better off saying ‘no’ when the intent fully isn’t understood,” he said.
Smith said he expected the council to continue the conversation after the vote.
“I voted no so that we could have a discussion about what [the salaries] should be and where we should go,” he said.
But once the motion was denied, no one spoke for a few seconds and, in the midst of the confusion, the council moved on to the next agenda item without discussion.
After the vote, Moyer-Cale said it is her understanding that elected officials are not being paid.
Smith, on the other said, said he doesn’t know why elected officials wouldn’t continue receiving compensation. They had already approved the salaries in July, and for the past six months, they have received those salaries.
“We didn’t un-approve the budget,” Smith said. “We didn’t vote to eliminate the salaries. We didn’t vote to change them.”
The item of business read “Consider elected-official salaries as recommended by the Mayor:”
Moyer-Cale said she expects it to be discussed again in an upcoming meeting.
• Adopted Robert’s Rules of Order.
• Approved a new city attorney, Jessica Wood of the law firm, Dickinson Wright. The previous city attorney, Stephanie Fekkes, said she did not put her name in the running.
“After 30 years of doing this job, I felt like it was a good time for a change with the new city manager and a new team,” she said during the meeting.
“Because I’m not going to be around forever, obviously. I’m getting older and I’m starting to wind things down – not wind things down in my practice, but also looking at time management in my personal life and my professional life. I felt like with the new city manager and a new team being formed, it was a good time for them to build their new team to move forward.”
• Appointed Moyer-Cale as the city’s Title IV coordinator, which deals with discrimination complaints against the city.
• Accepted annual board and commission appointments from Tossava.
• Accepted annual staff appointments from Moyer-Cale.
• Approved the MDOT Right of Way annual permit.
• Had the first reading of a new ordinance that would bring accessory dwelling units to the city. The second reading will be at the city’s next meeting Jan. 24.
• Set a special meeting for 6 p.m. Jan. 24 to discuss budget goals for the 2022-23 fiscal year.