City Council Meeting - 2021-11-01

Detailed briefing

Harbor Springs City Council Meeting — November 1, 2021 • Council approved the consent agenda. During public comment, the city said duplicate electric bills were caused by a software glitch; residents were told not to disregard one bill, as the duplicate bills were described as identical. • Utility Financial Solutions presented a preliminary electric-rate study. The consultant said Harbor Springs has not raised electric rates in at least 15 years and faces substantial future system costs. The study incorporates a proposed new substation, distribution work, and replacement of a transformer at the existing substation. Staff said the system study identifies projects anticipated over roughly the next six to 10 years. • The consultant’s initial rate track showed 2.5% annual adjustments for three years, with possible larger adjustments later if assumptions held. Council members discussed using 3% annual adjustments for the first three years to reduce the need for later increases. The consultant said he would redesign rates around 3% and update the projections. No final rate action was taken. • Council discussed changing course on harbor facilities because a new harbormaster building and related parking/green-space work may not be financially feasible in the near term. Staff will explore remodeling the existing harbormaster building to provide boater laundry facilities and developing a separate Marina Park structure with public restrooms. The proposed restroom structure’s location, design, parking implications, costs, funding, and schedule remain open. • Staff presented possible near-term short-term-rental measures: faster enforcement, review of suspension and penalty procedures, good-neighbor and good-host educational materials, a required renter handout, review of nuisance rules and lodging definitions, and a possible 2022 licensing-fee increase. Staff noted pending state legislation could restrict the city’s ability to cap rentals or regulate them by district. Staff said it will advance what it can during budget season and return to council, likely in December or January. • The city announced a holiday tree-lighting for Saturday, November 27, at 6 p.m. Staff also reported receiving the first half of a $126,000 American Rescue Act payment and said possible uses will be brought forward during capital-improvement planning. Worth watching: • Council must review the electric capital-improvements plan before considering final electric rates. • Harbor and Marina Park planning must resolve restroom placement, building scope, parking, funding, and committee coordination. • State short-term-rental legislation may change the city’s local regulatory options. Upcoming: Staff said the electric capital-improvements plan is expected in early December; final rate recommendations would follow council review. Why it matters: The meeting began long-range decisions on utility reliability, waterfront public facilities, and rental oversight that could affect city costs, services, and residents.

No open public follow-ups are linked to this meeting yet.