An increase in building and zoning permit fees for home and commercial structures, signs, and other construction, is an effort by city council to eliminate a deficit in the building inspector's fund and are the result of a state-required deficit elimination plan. The building inspector's fund has been operating at a deficit of more than $2,000.

The new fee structure, said building inspector Paul Sved, is comparable to Clark Township, although fees are less than those charged in Chippewa County. The last increase in permit fees was approved in November 2006.

Council approved the increases, effective immediately, Monday, September 15. Fee increases range from $25 to $50. Also, a zoning fee of $150 now is required for an offpremise sign. The fee should have been established when the city adopted its new sign ordinance last year, said Mr. Sved, allowing for the oversight.

He suggested Council raise the zoning permit fees by 5% each fall, but Council took no action on the recommendation.

Council approved the recommendation of the Recreation Committee to purchase a pickup truck for the Recreation Department with the cost not to exceed $4,500. The Recreation Department will borrow the funds from the Department of Public Works, interest-free, for two years.

Councilmen Willie LaLonde and Tom Della-Moretta questioned the expenditure, although both voted in favor of the purchase.

Mr. Della-Moretta asked for information on mileage costs the city has been paying to Recreation Director Scott Marshall and two other employees for using their own vehicles, and City Manager Eric Dodson estimated it to be about $400 a month, at 58¢ a mile, based on the city's latest mileage request from Mr. Marshall.

Mileage allowances are meant to cover gasoline, maintenance, insurance, and all other overhead of personal vehicles, so little or no savings will be realized by transferring those costs to a city-owned vehicle.

Mr. Della-Moretta also asked if $4,500 would purchase a reliable truck.

Mr. Marshall said the Recreation Department is looking at a 1996 Ford F150, four-wheel drive, with 126,000 miles, which the city mechanic has examined.

Mr. LaLonde expressed concerns that the Recreation Department had to borrow the money and that the city already had an old truck that may need replacing soon.

That truck, said Mr. Therrian and Mr. Dodson, would need replacing in the next two years.

Creating affordable rental housing in the downtown district was supported by Council in the form of a resolution that will accompany a grant application being made by Housing Opportunities Make Equal (HOME) of Mackinac county for apartment house subsidies.

"We're not building new homes because of the current market situation, so we're finding other ways to assist families," Lori Pieri, executive director of HOME, told The St. Ignace News Tuesday, September 16.

A public meeting attended more than 20 people in July generated a lot of interest in the program, she said.

If the grant is awarded, a landlord can invest 25% in a housing rehabilitation project and receive 75% from the Michigan State Housing Development Authority (MSHDA). The maximum MSHDA contributions would be $25,000 for an existing unit and up to $35,000 for a new apartment.

MSHDA rules requires that the rental rate of the unit meets specific guidelines for five years. Also, landlords must agree to a five-year lean on their property with the city. The lean is forgivable, if the landlord complies with making the housing affordable.

The sewer project bond closing is set for September 22. Work on both phases of the project now may begin this fall.

Phase one is the priority, said Les Therrian, director of the Department of Public Works, including replacement of the force main on Cheeseman Road and replacing the North State Street lift station.

Work at the lagoons is part of the second phase of the project and includes automatic fine screening of the lagoon effluent, an ultraviolet disinfection system, and lagoon liner replacement for five of the six ponds.

Council approved Cole Inc. of Cadillac with a bid of $891,702 to build a new bus station at the corner of Church Street and US-2. An unattached canopy will cost $190,149. The city prefers the contractor use local labor and supplies, said City Manager Eric Dodson, but can't require it.

The contract was recommended by DLZ, the architects for the project.

Other bids received were Whisker River of Traverse City at $1,094.950, Nomad Construction of Sault Ste. Marie at $1,015,000, Devere Construction of Alpena at $1,138,000, Spence Brothers Construction of Saginaw, and O'Boyle and Company of Marquette at $971,850.

Belonga Plumbing and Heating of St. Ignace was the lowest bidder, at $16,907.40, for the Murray Street sewer line project. The company also will charge $7 per cubic yard for sand. Other St. Ignace businesses bidding on the project were Art Huskey and Sons Excavating, which bid $26,000 and Maverick Construction bid $26,695. Those bids include sand.

Completed city manager evaluation forms were turned in the Mayor Paul Grondin by council members. He will compile the comments and present a report at the next city council meeting.

Operations at the marina remained flat for August, said Marina Director Gene Elmer, compared to last year, while July's numbers were about 10% lower than in 2007.

A nearby lightning strike has affected phones at city hall. Insurance will cover the cost to replace internal lines and 13-phone system, which will cost $6,380 from Solutions Communications of Escanaba. It was the lowest of three bids required by the insurance company.

Council approved a license to drive a taxicab for Penny King of St. Ignace.

Council offered a resolution in support of Bayside Fall Fest, Autumn Apple Days, and the Great Pumpkin Roll for Saturday, October 4.

Council next meets Monday, October 6, at 8 p.m. at city hall.