The Buchanan City Council has unanimously voted to continue operating SMCAS under Public Act 7.
In preparation for Monday’s regular council meeting, the commissioners convened for a one-hour work session on Nov. 30 with SMCAS Director Brian Scribner and Howard Township Trustee Bill Kasperzak to discuss the differences in the public acts proposed.
In notes provided from the work session, Scribner told the council members who were present that SMCAS was doing well and had money in the bank, and that they were not looking for a loan. Rather, Scribner sought advice from an attorney before SMCAS considered asking the municipalities for an increase to the assessment fee, and received a letter saying that restructuring would be necessary.
Currently, SMCAS is organized under Public Act 7, which allows the municipalities to levee a millage, paid for by a $20 home assessment fee. The current funding structure, which has been in place for the last eight years, is set to expire at the end of this month.
Under the proposed Public Act 57, SMCAS would unify all of the municipalities under a single authority for providing emergency service, giving SMCAS the power to put its own millage rate on a ballot, up to a limit of 20 mills.
“I will add that responses from other communities are in support of Option A [Public Act 7],” said Bill Marx, city manager for Buchanan. “Everybody is comfortable with Act 7 the way we have been doing it. It is very functional for the service to move forward.”
Marx added that if the council had decided to switch to Public Act 57, there would be a lag between the item coming to a vote and the operation of SMCAS.
If the municipalities come to a consensus and approve staying with Public Act 7, SMCAS will begin assessing their budget. Depending on the need of each community, which may result in a raise in the assessment fee, according to Marx. Any increase in the fee would require a vote by the council.
“The reason why a lot of these municipalities are going with [Option] A [Act 7] instead of [Option] B [Act 57] is that this tax that you put on, if you decide half-way through the tax that you want out, you cannot get out,” said councilman Dale Toerne.
The city commissioners also voted unanimously to award Fedewa Inc., of Hastings, Michigan, the bid to repaint the water towers on Front and Moccasin streets for its estimate of $170,800. Each company also provided optional estimates to paint alternate logos on each tower. The lowest bidder was Industrial Painting, of Taylor, Michigan, with a bid of $169,400, but Fedewa and Industrial Painting differed significantly in their estimates to paint alternate logos.
“If we selected that [the lowest bidder], we would create an obstacle for our further discussion of the logo,” said Marx about his recommendation to the council to choose Fedewa.
Fedewa bid $3,000 per tower to paint the logos, $19,700 less than Industrial Painting. Painting of the alternate logos has yet to be approved by the council, so Fedewa’s bid gives the city financial wiggle room to discuss the option.
The current paint jobs on the towers have lasted for more than 15 years, according to Marx.