HomeMy WebLinkAboutSTUDY - 2016-11-02
CITY OF LIVONIA – CITY COUNCIL
MINUTES OF STUDY MEETING HELD NOVEMBER 2, 2016
Meeting was called to order at 8:05 p.m. by President McIntyre. Present:
Brandon Kritzman, Jim Jolly, Cathy White, Scott Bahr, Brian Meakin, and Kathleen
McIntyre. Absent: Maureen Miller Brosnan.
Elected and appointed officials present: Todd Zilincik, City Engineer; Mark
Taormina, Director of Planning and Economic Development; Don Knapp, City Attorney;
Don Rohraff, Director of Public Works; Doug Moore, Superintendent, Public Works;
Judy Priebe, Director of Legislative Affairs; Dave Varga, Director of Administrative
Services; Mike Slater, Director of Finance; Dennis Wright, Mayor; and Susan Nash, City
Clerk.
President McIntyre announced there is new data on Item #3.
Susan Nash, City Clerk, announced the City will be open tomorrow, Saturday,
November 5, 2016, from 9:00 a.m. to 2:00 p.m. for election purposes only. Absentee
ballots may be obtained at the City Clerk’s office tomorrow and also on Monday,
November 7, 2016 from 8:30 a.m. to 4:00 p.m., Saturday is the last day absentee
ballots will be mailed out, however, on Monday anyone voting absentee must vote at
City Hall, ballots may not leave the building. Polls will be open 7:00 a.m. to 8:00 p.m. on
Tuesday, November 8, 2016, she encouraged all registered voters to get out and vote.
AUDIENCE COMMUNICATION: None
NEW BUSINESS:
1. REQUEST TO WAIVE THE SIDEWALK REQUIREMENT: Ben Couch, re: for
the newly constructed home at 18316 Lathers Street.
Todd Zilincik, City Engineer, presented the request to Council. The Engineering
Department is in receipt of Mr. Benjamin Couch's letter received October 19,
2016 requesting a sidewalk waiver. They have reviewed the surrounding
neighborhood regarding the presence of sidewalks. There are some sidewalk
segments that exist on at a few houses on both sides of Lathers, just north of
Curtis. However, because there are no sidewalks on Lathers located midblock
between Curtis and Puritan, they would recommend waiving the sidewalk at this
time.
John Couch was present with his son, Ben Couch. He was ready to answer any
questions Council may have.
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Vice-President Kritzman offered the approving resolution for the Consent
Agenda.
DIRECTION: APPROVING CONSENT
2. AWARD OF BID: Livonia Public Library, re: for carpet installation for the Branch
Libraries and the third floor of the Robert and Janet Bennett Library.
Toni LaPorte, City Librarian, presented the request to Council. The Public
Service Division has taken bids for carpet installation at the Alfred Noble, Carl
Sandburg and Civic Center Libraries. Specifications were prepared by the
Finance Department and placed on MITN, and two (2) companies submitted
proposals.
The bid was written with each site listed separately, and the bids were as follows
Library Design Associates, Inc. (Plymouth, Ml)
Carpeting Abatement Total
Civic Center Library $14,171 .00 $14,171.00
Alfred Noble Library $68,433.00 $2990.00 $71,423.00
Carl Sandburg Library $71 ,765.00 $2990.00 $74,755.00
SCI Floor Covering (Romulus, Ml)
Civic Center Library $12,008.54 $ 12,008.54
Alfred Noble Library $77,316.39 $ 77,316.39
Carl Sandburg Library $86,216.96 $25,142.00 $111,358.96
The low bid for the two branch libraries was submitted by Library Design. This
company has done carpeting, book moving and shelving relocation projects for
over 100 libraries in Michigan, and is highly recommended. They are basically
the sole provider for library shelving relocation.
It is respectfully requested that City Council accept the bid in the amount of
$146,178.00 from Library Design Associates, 1149 S. Main Street Plymouth, Ml
48170 for the two library branches, and the bid in the amount of $12,008.54 from
SCI Floor Covering, 30610 Ecorse Road Romulus, Ml 48174 for the third floor of
the Civic Center Library.
Appropriate funds have been budgeted and are available in the Capital Outlay -
Building Improvement Account.
Vice-President Kritzman asked LaPorte to explain the abatement listed. LaPorte
replied it was in case asbestos was found in the flooring at Carl Sandburg
Library. They were uncertain if it would be needed.
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Jolly offered the approving resolution for the Consent Agenda.
DIRECTION: APPROVING CONSENT
3. REQUEST TO APPROVE THE EXECUTION OF AN ADDENDUM TO THE
SPECIALIZED SERVICES VEHICLE AGREEMENT BETWEEN THE
SUBURBAN MOBILITY AUTHORITY FOR REGIONAL TRANSPORTATION
(SMART) AND THE CITY OF LIVONIA: Department of Community Resources,
re: so as to cover three (3) 2016 Champion lift equipped buses which have been
provided by the Federal Transit Administration (FTA) 5310 Grant through
SMART for the Livonia Community Transit Program.
Linda McCann, Director of Community Resources, presented the request to
Council. In 2013/2014, Livonia Community Transit (LCT) applied for new vehicles
through the FTA 5310 grant program administered by SMART. They have been
notified that the grant has been approved for LCT to receive three (3) 2016
Champion lift equipped buses.
There is no cost to the City for these vehicles. It is respectfully requested that
Council authorize execution of the agreement so that they may take possession
of these vehicles.
Meakin offered the approving resolution for the Consent Agenda.
Bahr asked McCann to explain the grant process from SMART. McCann gave an
explanation of the process.
DIRECTION: APPROVING CONSENT
4. REQUEST TO ACCEPT QUOTATION FOR WORKERS’ COMPENSATION
INSURANCE: Department of Finance, re: with York Risk Services Group, to
provide claims administration services and with Midwest Employers Casualty
Company to provide excess insurance coverage when losses from any one claim
reaches $750,000, for the period from December 1, 2016 to November 30, 2018.
Mike Slater, Director of Finance, presented the request to Council. The City's
contract for administration of workers' compensation claims and for excess
insurance coverage will expire on November 30, 2016. With the assistance of
Lawrence Drummy of Perry and Drummy, Inc., quotes were solicited for these
services for the period of December 1, 2016 to November 30, 2018. Results of
the quotations are provided as Exhibit 1.
They recommend that City Council authorize the execution of a contract with
York Risk Services Group, 645 West Grand River, Howell, Ml 48843 to provide
the City claims administration services for a total premium of $42,000 in year one
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and $43,260 in year two. The new claims administration costs reflect a 6%
decrease from the current costs.
They also recommend that City Council authorize the execution of a contract with
Midwest Employers Casualty Company, 14755 North Outer Forty Drive, Suite
300, Chesterfield, MO 63017, to provide excess insurance coverage when losses
from any one claim reaches $750,000, for a total estimated annual premium of
$128, 189. The estimated premium is based on the quoted cost of $0.2959 per
$100 payroll for excess insurance coverage.
The new excess insurance rates reflect a 3% increase over the current rate.
Exhibit 2 shows the history of the City's workers' compensation costs.
Bahr said in reviewing the history he noticed a large increase back in 2012-2013
and asked Slater the reason for that increase. Slater replied the competition left
the state. He said it is challenging to find companies that will offer this type of
coverage. He said if compare percentages to the cost of the payroll he said it is
lower than it has been in past years.
Meakin offered the approving resolution for the Regular Agenda.
Jolly asked Slater what the relationship was between this coverage and the
coverage the City has with MMRMA. How do they function together? Slater said
this strictly Workers Compensation. MMRMA is property casualty. Jolly said so
this is one of the things not covered by MMRMA. Slater said it is not. He added
that Workers Compensation coverage is mandatorily required statutorily.
Scott Morgan, President, LPOA, addressed Council and expressed his concerns
regarding Workers Compensation claims. He requested that Council take a
closer look at the City’s insurance company.
Jolly said he is not sure what can be done about the handling of Workers
Compensation claims and what Councils role may be in resolving in the matter
but said he does feel it is worthy of further discussion. He also asked Knapp for
his opinion on the matter.
Don Knapp, City Attorney, said the Law Department does not handle Workers
Compensation claims processing nor do they get involved in any determinations.
He said Council’s role would be very limited in that process. He said he thinks it
would be more a matter if certain processes were followed and if the law was
followed. He said basically the laws are written and in place, it is a matter of
which insurance carrier to use.
Jolly offered the resolution referring the matter to the Administration for a report
and recommendation re: the appropriate course of action for LPOA to address
issues with denial of Workers Compensation claims for the Regular Agenda.
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Vice-President Kritzman said it is important that Council be aware of issues if
there are any with the insurance carrier and said he would like to offer the
resolution requesting that Administration outline the appropriate course of action
for LPOA to address issues related to Workers Compensation claims.
Slater added that they have a meeting scheduled within the next two weeks to
discuss the issues.
Bahr asked for clarification of Jolly’s and Kritzman’s resolutions offered. The
difference between them. He said he was having difficulty distinguishing any
difference between them.
Jolly withdrew his resolution.
DIRECTION: 1) APPROVING REGULAR
2) REFER MATTER OF WORKERS
COMPENSATION CLAIMS HANDLING
TO ADMIN FOR REPORT & RECOMMENDATION
5. REQUEST TO RENEW THE CITY’S LIABILITY AND PROPERTY INSURANCE
COVERAGE: Department of Finance, re: with the Michigan Municipal Risk
Management Authority (MMRMA) for the period from December 1, 2016 to
November 30, 2018.
Mike Slater, Director of Finance, presented the request to Council. On October
18, 2016, He received a proposal from Michigan Municipal Risk Management
Authority ("MMRMA") for renewal of the City's liability and property insurance
coverage. The City's current policy with MMRMA is due to expire on November
30, 2016.
As explained below, the City is entitled to receive a net asset distribution of
$908,043 upon renewal, which offsets most of the premium cost of $1,128,312.
This welcome news makes the decision on renewal a likely formality.
Summary of Proposal
Presented below is the proposed renewal option from MMRMA:
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CURRENT
DESCRIPTION POLICY RENEWAL
Term 2 years 2 years
SIR per occurrence $250,000 $250,000
Stop Loss Attachment
Point N/A N/A
Premiums * $1,101,537 $1,128,312 (First Year)**
Iner over Current
Policy 2.4%
* - Premiums for coverages per Member Coverage Overview
** - The Price for the second year will be calculated based upon the change in
reinsurance rates the MMRMA incurs in 2017. The increase will not exceed eight
percent (8%).
A history of MMRMA insurance expenses is attached as Exhibit 1.
Coverages
Liability - The City continues to be covered for up to $15 million per occurrence,
after payment of a Self-Insured Retention ("SIR").
Property - Real and personal property are covered for replacement value. The
MMRMA has a $1,000 deductible per occurrence and a SIR of 10 percent of the
next $100,000 of loss.
Vehicle Physical Damage - The MMRMA covers up to $1,500,000 per
occurrence, after a $1,000 deductible per loss and a SIR of $15,000 per vehicle
and $30,000 per occurrence. Vehicles are covered only for current value.
However, MMRMA does cover fire vehicles at replacement value.
Sewer System Overflows - The MMRMA policy provides coverage for sewer
backups with a limit of $500,000 per occurrence and in aggregate. This coverage
is not available in the commercial market.
Excess Net Assets
In June, 2006, the MMRMA Board of Directors adopted a Net Asset Policy.
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Livonia has received distributions under this program in the following amounts:
2006 $ 102,355
2007 120,628
2008 473,766
2010 308,960
2011 555,773
2012 1,293,468
2013 686,650
2014 1,083,037
2015 1,332,933
2016 907,043
Total $6,864,613
The goal of the policy is for MMRMA to maintain an appropriate level of net
assets comparable to high quality insurance companies enjoying an AM. Best
rating of "A" or higher. The MMRMA Board will then determine annually whether
to distribute assets in excess of this level back to member communities.
Only current MMRMA members are eligible to receive a distribution. If Livonia
leaves the MMRMA, we will not get the 2016 distribution nor any future
distributions.
A detailed description of the Net Asset Policy is attached as Exhibit 2.
Benefits of MMRMA
1. Services provided by MMRMA, such as Risk Control and Claims
Administration functions, would require additional City personnel if the
city becomes independently self-insured.
2. If Livonia does not renew the policy with MMRMA, we will not be
eligible to receive the $907,043 excess net asset distribution earned
in 2016, and will not receive future net asset distributions.
3. Unlike the commercial insurance market, MMRMA has provided expanded
coverage for terrorism, data breach, sewer back-up, eminent domain and
inverse condemnation.
4. MMRMA allows the City to participate in the decision process for
settlements, which would be much more limited in the commercial
market.
5. The MMRMA is a good example of local units of government sharing
services as encouraged by the State of Michigan.
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Conclusion
Based upon the information provided above, it is recommended that City
Council authorize the execution of an agreement with the Michigan Municipal
Risk Management Authority, 14001 Merriman Road, Livonia, Michigan 48154,
for the period from December 1, 2016 to November 30, 2017, fora total premium
of $1,128,312, and for the period of December 1, 2017 to November 30, 2018,
with a premium increase to be based upon reinsurance increases incurred by
MMRMA in 2017, not to exceed eight percent.
Meakin offered the approving resolution for the Consent Agenda.
DIRECTION: APPROVING CONSENT
6. REQUEST FOR ADDITIONS TO THE LOCAL STREET SYSTEM FOR ACT 51
COMPUTATIONS: Engineering Division, re: for streets or portions thereof newly
opened during 2016.
Todd Zilincik, City Engineer, presented the request to Council. In accordance
with the Michigan Department of Transportation's (MDOT) procedure for adding
streets to the City's local street system, the Department of Public Works has
requested that the Law Department prepare a resolution with regard to streets (or
portion of streets) newly opened during 2016. A resolution is offered for Councils
consideration and possible adoption:
White offered the approving resolution for the Consent Agenda.
DIRECTION: APPROVING CONSENT
7. REQUEST TO APPROVE THE ESTABLISHMENT OF IMPROVEMENT
BONDS: Engineering Division, re: to assure the installation of public
improvements at Washington Park Site Condominiums, located on the southwest
corner of Hix and Ann Arbor Roads (former Washington Elementary School site),
in the Southwest ¼ of Section 31. (CR 151-16)
Todd Zilincik, City Engineer, presented the request to Council. Council
Resolution No. 151-16, dated April 4, 2016 approved the preliminary Master
Deed, Bylaws and Site Plan for the above referenced condominium. Upon review
of the plans for the subject development the Engineering Division has determined
that the following bonds should be established pursuant to Section 18.66 of
Ordinance No. 543. The bonds in question are required at this time to assure the
installation of public improvements.
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General Improvement Bond ($60,557.00 minimum cash)
Sidewalk Bond ($10,000.00 minimum cash)
Grading & Soil Erosion Control Bond ($7,800.00 minimum cash)
Entrance Markers/ Landscaping $7,500.00 (all cash)
Monuments and Markers Bond $1,500.00 (all cash)
Public Utility Bond $5,000.00 (all cash)
Site Development Bond $500.00 (all cash)
As-Built Drawings Bond $2,000.00 (all cash)
An estimate of the cost of the public improvements for the purpose of
establishing the improvement bond requirement, along with the required cash
payments, is shown on the provided schedule in accordance with Section 18.66
of Ordinance No. 543.
Further. in accordance with Section 16.24.310 (modification of requirements of
the Livonia Code of Ordinances). it should be noted that a cash payment is being
recommended herein representing a contribution in aid for possible future street
lighting within the subject development. The contribution amount has been based
on the number of future street lights (as determined by this office) and cost
factors as estimated by the Detroit Edison Company in accordance with a ruling
of the Michigan Public Service Commission in December 1990.
To facilitate the maintenance of our records. the Engineering Division will require
that "as built" plans of all public improvements installed in connection with the
development be submitted to this office on Mylar reproducible material. Further,
appropriate utility easements and deeds will be required for future maintenance
by the City.
Jolly offered the approving resolution for the Consent Agenda.
DIRECTION: APPROVING CONSENT
AUDIENCE COMMUNICATION: None.
As there were no further questions or comments, President McIntyre adjourned the
Study Session at 8:52 p.m. on Wednesday, November 2, 2016.
DATED: November 10, 2016 SUSAN M. NASH
CITY CLERK