Fraser council authorizes Industrial Park bonds, approves park reconstruction and several contracts; raises senior-housing fees

Fraser City Council on Thursday voted to authorize the sale of up to $9 million in capital improvement bonds to finance Industrial Park roadwork and approved several related and separate contracts and capital projects, including a nearly $400,000 reconstruction of the tennis/pickleball courts at Stephens Park and a rooftop-unit replacement at the senior activity center.

The actions, taken at the council's regular April 10 meeting at Fraser City Hall, also included corrections to the city's Act 51 street map, approval of a municipal finance adviser contract, adoption of a building-services contract and a council-approved increase to senior-housing monthly charges.

Why it matters: The bond authorization and related approvals move a long-planned Industrial Park roads project closer to construction and create formal funding and administrative steps (sale, trustee accounts, disclosures) that will affect special assessments and future debt-service budgeting. The council also moved to spend locally budgeted and grant funds on parks and building maintenance projects that will be visible to residents.

Bonds for Industrial Park roads and municipal finance adviser

Bond counsel told council the resolution before members is "the second and final step before we sell bonds for the capital improvement bonds for the industrial park," and that the issuance would be limited to financing the Industrial Park improvements. The resolution authorizes issuance of a series of bonds not to exceed $9,000,000 and states the bonds will be secured by the full faith and credit of the city, with a portion—up to $4,000,000—expected to be paid from special assessments levied on properties in the special assessment district.

Council delegated authority to the city manager to award the bonds to the bidder producing the lowest true interest cost. The schedule described during the meeting targeted a sale on June 18 with a closing and delivery of proceeds in July. The resolution also authorizes an "official statement" and annual continuing-disclosure updates so investors will have ongoing financial information about the city.

Council also approved a contract with Benzinski and Company to serve as the municipal financial adviser for the bond sale. Steven Haydock of Benzinski told council, "We've been working with the city and city manager Levin, going back to last year on this issue." The firm's fee was stated as $32,500, payable only if the bond issue closes; the agenda packet also lists a $450 fee payable to the Municipal Advisory Council of Michigan.

Act 51 map corrections and street decertification

The council adopted four separate resolutions to correct the city's Act 51 major-and-local-streets map after an engineering audit. City consultant Mike Vigneron said the audit found inaccuracies including a portion of Gladys Street wrongly listed as a city street. "The city has been getting money for that road, and it's really not a road, a city street by any stretch of the imagination," Vigneron said; the council adopted a local-street decertification for Gladys Street and approved additions for Fraser Drive, Toulouse Avenue and Luxembourg Avenue. The staff noted that while about 707 feet of Gladys Street will be removed from the certified network, other additions produced a net increase of certified street footage and associated state funding eligibility.

Senior-activity-center rooftop units

Council awarded the senior activity center rooftop-unit replacement contract to Eastside Mechanical, the low bidder, for a base bid of $115,424.44 plus a construction contingency ($34,005.56) and an administrative fee ($7,500), with the total not to exceed $150,000 from CDBG funds. Staff said the project will replace the final three rooftop units at the facility, that lead times for the units are roughly 70 days, and that the work will likely be completed in late spring or early summer.

Stephens Park tennis and pickleball reconstruction

After a discussion of fence and surfacing options, council approved option 3 for the Stephens Park tennis/pickleball courts: full resurfacing with new asphalt and a vinyl-coated fence, awarding the job (agenda language) to Asphalt Specialist LLC for $399,354 and authorizing AEW to provide contract-administration services. Mayor Pro Tem Sutherland argued for the higher-quality fence as a long-term value: "Let's just stop kicking the can down the road, pay for the gold standard, and just do option number 3 and just get it done," she said during debate. Staff said the contract includes a contingency to add modest ADA accommodations and seating if council directs it.

Senior-housing rate change

Robust discussion preceded a council decision to raise senior-housing monthly charges. Staff recommended a $40-per-month increase. Council adopted a slightly modified motion to apply the increase as $20 more to the monthly rent and $20 more to the building operations/maintenance fee, with a 60-day notice to residents. The meeting packet shows current charges of $380 per month for a one-bedroom unit plus a $200 monthly operations fee; the new split was adopted to be reflected in future leases and operations accounting.

Building services contract and inspections

Council approved a contract with McKenna for building-department services. The agreement specifies contractor inspection availability in set windows and a requirement to perform inspections within 48 hours of request; council and staff spent time clarifying how those windows will operate in practice. Acting building official Karson Clausen told council he will perform plan reviews and inspections and will be on-site in an official capacity; the city manager and legal staff acknowledged the contract limits staffing compared with a full in-house department and said the schedule is intended to match the city's current inspection workload. The roll-call result noted on the record was 6-1 for approval of the McKenna contract.

Other actions and process notes

- The council approved an amendment to the Industrial Park Special Assessment District resolution to correct clerical items related to interest and the assessment table. - The council formed a library renovation and expansion subcommittee and appointed Council members Baranski, Shornack and Sutherland to meet with library trustees as they plan future improvements.

Public hearing and budget presentation

City manager Levin delivered a first presentation of the recommended FY 2025-26 budget, describing a recommended millage of 21.3525 (down from the current 22.0616 after a Headlee rollback), a projected beginning general-fund balance of about $10 million, use of roughly $2.2 million of fund balance next year leaving an $8 million ending balance, estimated revenues of $46.5 million and estimated expenditures of $48 million, and capital expenses of roughly $15 million. Levin said most expenditures are committed (labor contracts, pension/OPEB, utilities and multi-year projects such as Industrial Park Roads and Garfield Road reconstruction). The council opened and closed a public hearing on the proposed budget with no public speakers; council scheduled a deeper budget workshop and department-head review for next week.

What's next

Council members directed staff to provide additional budget detail for next week's workshop, including actuals for recent fiscal years and clarifications on pension/OPEB line items that were discussed at the meeting. The city manager said the bond-sale timeline and the Stephens Park reconstruction schedule are anticipated to proceed this spring and early summer if market and contractor schedules allow.

Votes at a glance

- Adopt resolution 2025-006 authorizing sale of bonds for the Industrial Park Road Special Assessment District: adopted (voice vote). - Approve contract with Benzinski and Company as municipal financial adviser (fee $32,500): approved (voice vote). - Adopt resolutions to add Fraser Drive (2025-007), add Toulouse Avenue (2025-008), add Luxembourg Avenue (2025-009) and decertify Gladys Street (2025-010): all adopted (voice votes). - Award senior activity center rooftop-unit replacement to Eastside Mechanical: awarded; contract total not to exceed $150,000 (award approved by motion). - Approve Stephens Park courts reconstruction, option 3 (vinyl-coated fence, full resurfacing): approved; award to Asphalt Specialist LLC for $399,354 (motion adopted). - Increase senior-housing monthly charges by $40 total, split $20 rent + $20 operations (60-day notice): approved (motion adopted). - Approve McKenna Building Department Services contract: approved by roll call (6-1). - Adopt amendment to Industrial Park SAD resolution 2025-001 (clerical and interest-language corrections): adopted (voice vote). - Form library renovation and expansion subcommittee; appoint Council members Baranski, Shornack and Sutherland: approved (motion adopted).

Reporting and transparency notes

- Several votes were taken by voice vote and the agenda/minutes do not include recorded roll-call tallies for every item; where the transcript records a roll-call result (McKenna contract), the record shows a 6-1 vote. Staff told council they will provide supporting documents (bond-timing schedule, bid tabulations and detailed budget actuals) at follow-up meetings.

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