STURGIS - Second reading of the Title 7 Ordinance, along with consideration of two variance requests, a supplement to the 2023 budget and an operating agreement with the Municipal Utility Board are among items the Sturgis City Council will consider at its meeting Monday.

The meeting starts at 6:30 p.m. in the council chambers at Sturgis City Hall, 1040 Harley-Davidson Way. Those attending the meeting are asked to use the Sherman Street entrance.

The council will consider second reading of Title 7 which defines how city government operates.

The City Manager/Title 7 Subcommittee has been meeting for the past year to consider changes to the ordinance. The subcommittee is made up of one councilor from each ward in the city of Sturgis and was formed following some citizen concerns on the amount of power granted the city manager.

The subcommittee concluded that under state law and city ordinance the city council retains broad authority to define the duties and responsibilities of the city manager. It further concluded that revising those duties and responsibilities was within the council’s prerogative.

The sub-committee directed Sturgis City Attorney Mark Marshall to draft proposed revisions to Title 7 of the city ordinances and the city’s Policy and Procedures Manual. It’s those revisions that will be considered in this second reading.

The variances to be considered are for JBB Ventures, LLC at 2700 Whitewood Service Road. The property is zoned Highway Service, and the owners would like to build an addition to the existing building to be used as a wash bay. 

The second variance is for Tim and Jill Edson who own property at 1800 Main Street. They have requested a 12-foot variance off vacated 8th street, a 15-foot variance off the alleyway, and a 1-foot variance off 8th street. The applicants have submitted a site plan to build a 50-foot by 70-foot shop to operate a welding business. The area is zoned as Highway Service and abuts residential property. 

Several landowners within the notification zone have verbally addressed concerns regarding the proposed use of the property, as well as the physical encroachment into the 25-foot side setback. The Sturgis Planning Commission at its March 7 meeting voted 7-0 to recommend denial of the variance.  

Also at the meeting Monday, the council will vote on a supplement to the 2023 budget. 

Sturgis City Manager Daniel Ainslie said some carryover projects from 2022 are still in the process of being completed. In addition, some new initiatives that were not known last summer have been developed. As such, some changes must be made to the 2023 budget. 

Among the items in the supplement include:

• General Fund Finance- Accounts Payable Module for $15,000 The city is working to implement a new electronic Accounts Payable module. This new system will empower individual departments to complete their own voucher requests and upload the necessary backup documentation. This reduces the redundancy that was inherent in the previous accounts payable process and will allow for a quicker more transparent annual audit. Ultimately, this new process is anticipated to reduce total staff labor by more than 30%. Once fully implemented, the new process will provide significant labor savings. 
• Rally - Merchandise for Resale costing $300,000.  This year, the city will partner with year-round downtown and regional businesses to offer city merchandise for sale throughout the tourist season. This program requires the purchase of additional inventory. 
• Streets - Street Banner Poles costing $460,000. The project was designed, and the construction bid was awarded in 2022. However, the vast majority of the project will be completed in 2023. Even though the funds for the project were originally appropriated in 2022, they were not expensed. 
• Indoor Batting Facility costing $220,000. The project was designed in 2022 and is anticipated to be released for bids in the coming weeks. As such, the vast majority of the project will be completed in 2023. Even though the funds for the project were originally appropriated in 2022, they were not expensed. 
• Auditorium Painting and Duct Cleaning costing $80,000. The project was delayed when concern was raised that the ducts should be cleaned before the ceiling is painted. Even though the funds for the project were originally appropriated in 2022, they were not expensed. Therefore, this supplemental appropriation is requesting to reallocate the funding that was unspent from 2022 to 2023 and to provide some limited additional funds to complete the duct cleaning that was originally not included in the project. 

In 2014, the City and the MUB signed an operating agreement shifting all financial management of the water utility to the City Finance Office. This transfer included all billing, accounting, and audit duties. The goal of the proposed agreement before the board Monday is to continue the terms of the 2014 operating agreement for the next 20 years. The proposed agreement maintains the same terms as the 2014 agreement and continues the working relationship between the city and the MUB. 

Sturgis Mayor Mark Carstensen said the relationship is beneficial to both parties through the maximization of resources and the efficient management of the water utility financial management through the City Finance Office.