HOUGHTON — The Houghton City Council approved contracts with all of its bargaining units at the June 23 council meeting.

American Federation of State, County and Municipal Employees (AFSCME) Local 226, which includes Department of Public Works employees, and the Police Officers Labor Council, which represents the police supervisory and patrol officers’ unions, agreed to three-year contracts.

Wages will increase 7% in the first year, followed by 3% increases each of the next two years. There had been no wage increases last year.

Non-union and non-contract employees will receive a 7% wage increase in 2021.

Health care contributions were set the same for all employees. Starting July 1, 2022, single employees will contribute $20 per pay period for insurance; two-person policies will be $50, and family will be $60.

“I thought it would be a good thing to at least start some sort of contribution on behalf of the employees towards the cost of their health insurance, because that is one of the larger ticket items in our benefits package,” City Manager Eric Waara said.

AFSCME employees hired before July 1, 2015, will also receive a $200 monthly medical stipend after retirement. They also received two additional vacation days rather than increased holidays. Hourly premiums for sanitary sewer work and second/third shifts were also increased.

The contract also formalized the summer schedule for the DPW. The DPW can also have no more than two Master Mechanics.

For police patrol officers, the length of a day shift was increased from eight hours to 12 hours. The minimum time needed to provide notice of a change in shift was reduced from 30 days to 15 days. In the overtime section, the contract also changed the length of a normal shift from six hours to 15 days. The contract also stipulates that both parties can agree to change the schedule for mutual benefit at any time.

Retirement plan language was also adjusted to include a 2.5% cost-of-living adjustment.

After a council evaluation, Waara received the 7% salary raise given to non-contract employees.

“We’re lucky we have an engineer who’s also been in charge of a lot of big projects over the years,” Mayor Pro Tem Robert Megowen said. “The City of Houghton is a big project.”

The council also approved a bid of $4,990,200 from MJO Contracting for the Mattila Square pier project.

Councilor Mike Needham made the motion to approve “with relief.”

A long route to state funding ended Tuesday, when the Michigan Strategic Fund approved $4,006,150 in Community Development Block Grant money for the project at its meeting. The city will provide a $984,150 match.

The state had previously approved funding in 2019, only to redirect the money in the spring of 2020 for COVID-19 spending.

The city’s original bids came in higher than budgeted thanks to the hike in steel prices during the pandemic.

Although COVID-19 restrictions were still in place during the traditional Bridgefest weekend, Waara said the city is in talks with Hancock and the Keweenaw Chamber of Commerce to host some sort of event. Whatever it is would likely take place in August or early September, and be scheduled not to conflict with other events.

Several other local events are resuming after a year off, including the Pasty Fest in Calumet, the Strawberry Festival in Chassell and the Parade of Nations from Hancock to Houghton.

The council also set a public hearing for a rezoning request for two parcels of land near Cole’s Creek for July 14.

Current owners JRG Development are looking to have the property rezoned from B-2 (community business) to Reserve. The prospective buyer, Gold Metal Rentals is looking to build 18 to 24 vacation homes on the site, along with a campground, pavilion and other amenities.

Several residents wrote or spoke in support of the rezoning.

The hearing had originally been suggested for July 28. However, the three weeks before the next council meeting will satisfy the 15-day requirement for notice of a public hearing.

The council also approved a lot split on the 7.75 acre Parcel D of the JRG property, which is not among the parcels being requested for rezoning. The Planning Commission recommended the lot split at its meeting the previous night.

In other action, the council:

– Approved applying for a grant for electric vehicle charging stations through the Department of Environment, Great Lakes and Energy (EGLE). Preliminary estimates put the total cost at $40,000 for a location on the upper deck on Isle Royale Street and $30,000 for the upper deck on Quincy Street.

– Set a public hearing for the abandonment of a portion of Frue Street for July 28.

– Approved a $294,329 bid from Bacco Construction for the Small Urban paving project on Houghton Avenue.

– Approved a $1,135,633.70 bid from Bacco Construction for 2021 city paving projects. Bacco was the lowest of three bidders.

– Voted in support of the transfer of the liquor license from Formosa of Houghton (Bambu) to Cork and Beans, LLC, which will operate at 815 Shelden.