With help from the Sault Ste. Marie Tribe of Chippewa Indians and volunteers, the city will build an addition to Little Bear East for a new fitness room, which will allow the current room to be used for a hockey locker room.

The tribe will contribute $6,800 for construction materials, tribal board member Fred Paquin told Council Monday, May 5, if the city makes an application for the funds. Constructing the addition, he said, will resolve limited space issues at the facility, where the Firehawks hockey team and city recreation aerobic programs would otherwise be forced to share the same space.

Council also receive its 2007 audit report and was told plans for the city's bus station are moving forward again, after it was delayed when funds for the project were frozen by the state last year.

Mr. Paquin, who came up with the idea to add the approximate 16- foot by 35 foot addition to Little Bear East building, has been working with the city's public works director, Les Therrian, and fellow tribal board member Keith Massaway to resolve the space conflict. The addition would become the cardiovascular room, allowing the city to convert the workout room back to a locker room for use by the Firehawks travel hockey team.

Last month, Council was told an addition to the facility could cost about $135,000, although new plans call for using two existing walls. To keep costs down, the construction work will be performed by city crews, prisoners, and volunteers, including members of the hockey team.

Materials for the addition are estimated to cost between $5,000 and $8,000. Mr. Paquin said he would help the city find any additional funds that may be needed for the project.

Mr. Therrian said the work could begin as early as June.

"These kind of problems can be worked out," he said following the meeting. "We just needed time to come up with the ideas."

The city now must make a formal application with the tribe for the money.

A draft contract was presented to the city council during the meeting for a lease between the city and the hockey team. The team would like to rent the locker space from October through March for $500. Before voting on the document, Council asked City Manager Eric Dodson to work with the club and the city attorney to complete the document.

City Audit

Council placed the city's 2007 audit on file. The city's general fund balance in 2007 was less than $146,000, down about $10,000 from the year before.

Nancy Stempky from the Cheboygan office of Rehmann Robson, the city's auditor, said the city is not in compliance with the bonded debt because its cash reserves are underfunded. This is a violation of the bond covenants. The city is required to have $297,442 in reserve for the Sanitary Sewer Disposal System Revenue Bonds. As of December 31, 2007, the reserve account contained less than half the required amount, with just $106,333 on hand, although it is an improvement over 2006, when no funds were in the account. The city, she said, has been out of compliance for the last several years. The city has implemented a five-year cash management and operation plan to build the revenues required.

"You've got a ways to go," said Mrs. Stempky, "but you're making progress."

The unreserved fund balance in the general fund was $113,130, she said, which is less than recommended. The funds account for about 5% of the total general fund expenditures and transfers. Generally, she said, it is recommended to be funded between 15% and 25%. The city has been at 5% for the last three years.

New Bus Station

Plans for the new bus station are back on the drawing board and Council looked at a sketch of the proposed design Monday evening. The plans, said Mr. Dodson, require some modifications and are subject to funding. They will be presented to the Planning Commission and Council when complete.

The bus station will be built on the corner of US-2 and Church Street.

Architects will give the building a "northern" appearance, Mr. Dodson said, and in such away that it can be converted to another use, should bus service be discontinued in the future. The plans allow for three bedrooms for drivers and a small, heated room accessible to travelers 24-hours a day.

Indian Trails busses will enter the station from Church Street and exit onto US-2.

The state, he said has budgeted $1.3 million for design and construction. The building is estimated to cost $780,000. The federal government will pay 80% and the state will pay 20%.

The Michigan Department of Transportation may again study traffic to see if a light is needed at the corner, Mr. Dodson said. Mackinac County has several flashing traffic signals, but no stop lights.

911 Dispatch Move

Mackinac County 9-1-1 Coordinator Bryce Tracy told Council a public hearing will be held before Mackinac County switches its dispatch center from Negaunee to Chippewa County. Service will not be interrupted during the transfer, he noted. Bois Blanc Island is contemplating joining the county's 9-1-1 program, he said, but has yet to take formal action. Calls to 9-1-1 there are now relayed to a Bois Blanc volunteer firefighter.

By resolution, Council approved the Yooper Motorcycle Show and Mud Run, both slated for May 24 and 25. Council sought assurances that Ojibwa Trail, the dirt road in front of Little Bear East, will remain accessible to emergency vehicles. Councilman Don Gustafson suggested to two groups meet with the Events Committee to insure both the motorcycle show and mud run go smoothly and organizers work together.

Council ended its meeting by entering into a closed session to discuss pending litigation between the city and the union, American Federation of State, County and Municipal Employees (AFSCME) over a dispute with filling the deputy clerk position. Coming out of closed session, Council directed Mr. Dodson to resolve the matter with the union.

City Council next meets Monday, May 19, at 8 p.m.