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HomeMy WebLinkAboutCOUNCIL STUDY - 2010-05-05 CITY OF LIVONIA— CITY COUNCIL MINUTES OF STUDY MEETING HELD MAY 5, 2010 Meeting was called to order at 8:00 p.m. Present: Laura Toy, Maureen Brosnan, John Pastor, Brian Meakin, Joe Laura and James McCann. Absent. None. Elected and appointed officials present: Mayor Jack Kirksey; Don Knapp, City Attorney; Todd Zilincik, City Engineer; Mark Taormina, City Planner; and Terry Marecki, City Clerk. Mayor Kirksey announced that Tennyson Chevrolet has been reauthorized as a bonafide Chevrolet Dealership by the new General Motors. The Mayor said Kit Tennyson is here to speak on this matter tonight. Also, John Rogin of John Rogin Buick is here tonight to speak about some arbitration that will take place this month regarding his dealership and his efforts. Mr. Kit Tennyson of Tennyson Chevrolet in Livonia stated he was happy to announce that GM has signed an agreement with him to reauthorize Tennyson Chevrolet as a GM Dealership. He wished Mr. Rogin of John Rogin Buick and Mr. McDonald of Livonia Chrysler luck with their arbitrations with GM. He thanked his employees for all their support too, especially when things looked grim. He also thanked Mayor Kirksey and the residents for all their support. Mr. John Rogin of John Rogin Buick in Livonia said he was proud to be a sponsor of the Spelling Bee held recently at the Livonia Civic Center Library. He said is also proud to be a sponsor for the of the 2010 Baseball Pitch Hit and Run Event that is being held this Saturday, May 8, 2010 from 8 a.m. to 12 p.m. here in Livonia at Ford Field. Mr. Rogin expressed his appreciation to Mayor Kirksey, Council, Conrad Schwartz, U.S. Representative Thaddeus McCotter, Senator Glenn Anderson, State Representative John Walsh and the community for all their efforts helping Tennyson Chevrolet, Livonia Chrysler and John Rogin Buick to be reinstated by the GM and Chrysler as certified dealerships. The reinstatement of Tennyson Chevrolet by GM is living proof of what these people can do when they unite for a cause. President McCann on behalf of Council along with Mayor Kirksey presented Sister Ann Stamm with a commendation for her award as 2010 Madonna Distinguished Alumni of the Year for all of her years of dedicated service to the community. Sister Ann expressed her gratitude and asked for God's blessing for America and Livonia her hometown since 1950. Toy asked John Rogin to let the audience now how they too can help him and Mr. McDonald by writing to GM and Chrysler. Mr. Rogin said he has a website www.savelivonianow.com where people can go and support him. He encourage people to write to Mark Russ, President of GM at the Renaissance Center in Detroit and Mr. Whittaker, CEO of GM. People may also send their letters to Mr. Rogin at his dealership 2 at 30500 Plymouth Road, Livonia, MI 48150 and he'll be sure that it gets forwarded to the GM executives. He stressed that the situation is very time sensitive. He said in the case of support for Mr. McDonald and Livonia Chrysler people can direct their letters to Chrysler's Chairman of the Board. A short one paragraph letter will help support them. Toy said Geri Joyner, a longtime resident and member of the community, passed away this past weekend and will be missed. There will be a memorial service held at Rosedale United Presbyterian Church at 11:00 a.m, Saturday, May 15, 2010, friends and family will celebrate her life. She is survived by her husband and 2 sons. President McCann announced a Public Hearing to be held in the Auditorium of Livonia City Hall, 33000 Civic Center Drive, Livonia, MI for the following item. Monday, May 17, 2010, at 7:00 p.m. Leo J. Howe, Wahler Automotive Systems, Inc., requesting approval of a Personal Property Tax Abatement in connection with an automated assembly line for the manufacturing of thermostats at their facility located at 13753 Otterson Court, Livonia, MI 48150. (Industrial Development Overlay District No. 111) AUDIENCE COMMUNICATION: None. NEW BUSINESS 1. BLOCK PARTY: Amy Fogle, re: to be held Saturday, June 5, 2010, from 12:00 p.m. to 10:00 p.m. on Henry Ruff, between Robert and Orangelawn, with a rain date requested of Saturday, June 12, 2010. Meakin offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 2. REQUEST TO WAIVE THE CITY'S NOISE ORDINANCE: Peggy Roberts, Executive Director, AAA Pregnancy Resource Center, re: to allow a live band to perform from approximately 9:30 a.m. until 12:30 p.m. at 16751 and 16755 Middlebelt Road in connection with a one-mile walk and 5K Fun Run fundraiser scheduled for Saturday, May 15, 2010, to assist women and families that find themselves in an unplanned pregnancy. Teri Temby was present on behalf of AAA Pregnancy Resource Center. Toy offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 3 3. REQUEST FOR NON-PROFIT DESIGNATION: Kaye Whittington, member of the Great Lakes African-American Quilt Guild and Chairman of the Quilt Show, re: as required by the State of Michigan to obtain a Charitable Gaming License to allow them to hold a raffle to be held at the Livonia Senior Center on October 2, 2010 and October 3, 2010. Wanda Nash, 9355 East Wind Drive, was present along with Kate Whittington, on behalf of the Great Lakes African-American Quilt Guild. They thought it would be a good idea to have a Quilt Show to show the community the work of the quilt makers. She said they have volunteered at the State Fair and they wish to continue their volunteer efforts. They have donated over 100 quilts to various children's hospitals, such as Motts Children's Hospital in Ann Arbor, Detroit Children's Hospital and the Children's Hospital in Chicago. They welcome new members that would like to join their organization. The raffle will help them continue the work of the group. Currently the sole source of funding is their membership dues. President McCann inquired if all money raised is for their supplies they need to make the quilts that are donated and used for fundraising. More specifically he asked if for confirmation that financial records are kept for the organization and that none of the money is for the profit of any individual in the group. Ms. Nash confirmed that was correct. Brosnan offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 4. REQUEST FROM THE MICHIGAN LIQUOR CONTROL COMMISSION TO INVESTIGATE THE REQUEST FROM MOUTAFIS, INC. TO REBUILD AND ADD SPACE TO AN ESCROWED 2009 CLASS C LICENSED BUSINESS ISSUED UNDER MCL 436.1515(1); NON-TRANSFERABLE WITH DIRECT CONNECTION-1, OUTDOOR SERVICES, AND OFFICIAL PERMIT FOOD (AMENDED TO ADD 1 BAR — GOLF CART FOR A TOTAL OF 2 BARS; 1 OUTDOOR SERVICE — ENTIRE GOLF COURSE FOR A TOTAL OF 2 AREAS AND OFFICIAL PERMIT (GOLF): Division of Police, re: for the business located at 20500 Newburgh, Livonia, MI 48152. Steven Kiousis, 1740 W. Big Beaver, Suite 207, Troy, MI, was present on behalf of the petitioner they are seeking Council approval and have provided all the required documentation. Toy offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 4 5. REQUEST FROM THE MICHIGAN LIQUOR CONTROL COMMISSION TO INVESTIGATE THE REQUEST FROM OUTBACK STEAKHOUSE OF FLORIDA, LLC (A FLORIDA LIMITED LIABILITY COMPANY) TO TRANSFER OWNERSHIP OF A 2009 CLASS C LICENSED BUSINESS, FROM OUTBACK/DETROIT-1, LIMITED PARTNERSHIP (A FLORIDA LIMITED PARTNERSHIP); AND REQUESTS NEW OFFICIAL PERMIT (FOOD) AND SUNDAY SALES: Division of Police, re: for the business located at 29441 Five Mile, Livonia, MI 48154. Scott Edwards, 2855 Coolidge, Suite 203, Troy, was present on behalf of Outback Steakhouse. He stated this is an ownership transfer as a result of Outback Steakhouse going private back in 2007. There has been no change in the menu or operations. Brosnan offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 6. REQUEST FOR CREATION OF STIPENDS FOR EMPLOYEES IN THE ASSESSOR'S OFFICE ASSUMING TEMPORARY DUTIES: Civil Service Department, re: to establish an annual stipend of $8,000.00 for the position of Assistant City Assessor while assuming the functions of the City Assessor, and an annual stipend of $6,500.00 for the Commercial and Industrial Appraiser while assuming the functions as a Level 4 Assessor, effective August 1, 2009. Mayor Kirksey stated Sherron Schultz resigned from the position of City Assessor effective August, 1, 2009. In her absence, the two (2) individuals they bring before Council this evening, to recognize a stipend for them, have assumed the responsibilities that Sherron had when she was employed with the City as a Level 4 Assessor. The City will not be filling the Assessor position at this, temporarily. As a result of that decision, the City will save a considerable amount of money. The Mayor is requesting additional compensation through a temporary annual stipend for the two (2) individuals who have assumed additional duties; Dawn, the Assistant Assessor who is running the Department, and Linda, the Commercial and Industrial Appraiser who has taken over the role of an in-house Level 4 Assessor, which is an official designation required to sign the assessment rolls for the City. The Mayor said the cost to the City to fill the position is approximately $177,000 with benefits. Factoring in this temporary stipend the City will still be saving approximately $156,000 annually by not filling the Assessor position. The Assistant Assessor is currently working toward becoming a Level 4 Assessor. He said Mr. Biga is present to answer any questions Council may have for the Civil Service Commission. 5 Toy said she feels this in line with what is being done. She feels that the two (2) individuals who have stepped up to the plate should be compensated. She recognizes the difficult times the City is facing and feels this staffing solution is saving the City a considerable amount of money. Brosnan inquired if the City has a precedent for stipends. Mr. Robert Biga, Civil Service Director, responded stating that the City does not have a precedent for stipends. He said normally in a classified Civil Service type situation, this would be handled through temporary promotions. If the City were to do something like in this case that would be precedent setting because the City Assessor position is a non-classified Civil Service position. He said this Council did bring up the mention of stipends awhile ago, when that was brought up it was not appropriate at that time. It seems appropriate this time, they were following the lead from the Council. Brosnan asked if this a temporary mechanism and how this plays out in the long run. Mayor Kirksey said it is temporary, but said they will be asking for it to continue through next year which they anticipate will be more difficult financially for the City than this year. The Mayor said until this economy turns around and the Public Sector catches up with this turnaround of the economy that is expected and returns to a `normal' flow of revenues this is his recommendation. Laura asked for an example of a temporary promotion. The Mayor replied by stating there was an Acting Director of Libraries. Laura asked the Mayor if temporary and acting were the same. The mayor replied, yes, further stating they are the Acting Directors of the Department on a temporary basis. The Mayor said in the future, based on economic projections, the Mayor and Council at that time will have a chance to reassess the organizational structure of the City and return to situations where they can put fully appointed Department Heads into their positions on a basis that is clearly spelled out and clearly understood by all. Toy offered the approving resolution for the Regular Agenda. DIRECTION: APPROVING REGULAR 7. REQUEST FOR APPROVAL OF ADDITIONAL APPROPRIATION: Department of Finance, re: for renovation costs for the new Housing Commission Administrative Offices located at 10800 Farmington Road. (CR. 559-08) Jim Inglis, Director of Housing, said back in 2008 the City of Livonia authorized a lease agreement with the Housing Commission to lease the property at 10800 Farmington Road. The lease agreement provides for renovation costs to be split between the Housing Commission and the City. The City being responsible for all exterior improvements and permanent improvements. The Housing Commission was responsible for the build out of all office space. The Housing Commission has completed all of the work and has occupied the building for the past 9 months. The City's share of the work is $49,244.12; this does not include the 6 permanent heating system for the building. He informed Council their Energy Conservation Block Grant they received through the Department of Energy will cover the cost of the new geothermal heating system for the building, no City funds will be expended for that improvement. Brosnan asked Inglis to describe the extent of the renovations. He said there was an existing hot water baseboard heating system that had to be removed, there were some air conditioning units on the roof of the building that had heat coils put in them to make them operational during the winter. There was an aluminum exterior enclosure on the back of the building that was deteriorated and had to be replaced. After the Inspection Department went through there was a variety of things that needed upgrading, it had been years since any upgrades were done, exit lighting, electrical upgrades, and emergency lighting. There were some design and architectural fees they split with the City. Brosnan asked Inglis if this allocation was not approved this year what type of situation would that put them in. He said they've used federal funds to cover those costs at this point. He said they would have to go back and take a look at Housing's federal programs and try to find the $31,000 elsewhere to cover those costs. He added that they are paying rent on the building and said within a couple of years the money would be paid back to the City as rent the City was not receiving in the past. They are also paying all the utility costs which the City was bearing on their own General Fund budget. Also, the lease allows for an increase in the rent annually which will be paid to the City. Pastor said the fact that Housing has obtained the federal dollars and is paying the City rent and paying their own utilities is helping increase the City's General Fund. The upgrades to the building help improve the value of the City property and the community. The City is trying something new with the geothermal system which should also be beneficial to the City. Pastor offered the approving resolution for the Regular Agenda. DIRECTION: APPROVING REGULAR 8. REQUEST FOR AUTHORIZATION TO SELL CITY-OWNED PROPERTY PURCHASED FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT $1 HOME PROGRAM: Livonia Housing Commission, re- located at 11180 Haller for a total sale price of$69,000.00. (CR 331-09) Mr. Inglis said the Housing Commission with Council approval purchased the home from the Department of Housing and Urban Development for $1. They reviewed the property, removed all the hazardous materials, and completed the rehabilitation of the property. They have put the home on the market. They are eligible to sell that home for what they put into it through acquisition plus rehabilitation or the appraised value, whichever is the lesser. They have an eligible buyer, Ms. Raquel Garcia, she is within the federal income limits. They 7 are asking for Council approval to sell this property in the amount of $69,000.00. Those proceeds will go back into the Neighborhood Stabilization Program. Laura asked Inglis what the property appraised for, Inglis replied $120,000.00. Laura asked if the appraisal was comparable to other homes in that neighborhood. Inglis said the appraisal is probably a little bit higher because of the work that they put into the property. He said the appraiser probably looked at as better than most homes in that neighborhood. Pastor said Inglis is following through on what he said to Council previously about not holding on to the properties and renting them out but rather to rehabilitate them and sell them and get them back on the tax rolls. Pastor said he doesn't like the value of it and that is why he previously suggested selling the properties to the School Foundation for in this instance $69,000.00 and then the School Foundation could turn around and sell the home for the $120,000.00 and then the value of the properties would remain more stabilized. Toy said Pastor's idea is a great idea. She asked Inglis how people can apply for the purchase of a rehabilitated home. Inglis said they contact the Housing Commission to get a list of properties that they are currently rehabilitating. They have a local realtor who puts them on the multi-list. They do require all their applicants to go through homeownership counseling. They want to make sure all of their buyers are prequalified. Inglis commented that because this home is being sold at $69,000.00 and the fact that it was a HUD home that was sold for $1.00 it is pulled from the realtor and assessing list of homes sold for comparability studies that are done, he included a copy of letter from the City Assessor's on this matter. Pastor responded by stating most financial institutions will include it in their studies. Laura also responded saying he agrees with Pastor and said what they've done is create a spiral even though it was all good intentions. He said unfortunately once those comparables get out they hurt the person who is trying to buy or in most cases refinance. In the case where an individual is trying to refinance and get out of being locked into a higher rate they are shot down because of these below market value sales on the comparable list and ultimately the properties end up in foreclosure. Laura said he does recognize Inglis for all of his hard work but personally doesn't agree with the philosophy; therefore, he requests this be placed on the Regular Agenda. President McCann also commented by saying in his line of work he deals a lot with housing and appraisals, buying and selling homes. He said the appraisals he gets do use the real estate comparables book. They take all of the listings that have sold and compare the home's size, the square feet, if that is being removed from that general condition it is not going to show up on the appraisals that he is getting from the real estate brokers. The only way to get it then would be to pull it from the register of deeds. He said that is not the normal circumstances of the appraisers. 8 Pastor offered the approving resolution for the Regular Agenda. DIRECTION: APPROVING REGULAR 9. AWARD OF BID: Public Service Division, re: for Bituminous Materials for the Road Maintenance Section for the period May 1, 2010 through April 30, 2011. Paul St. Henry, Superintendent of Public Service, said this is for bid they do on an annual basis for hot asphalt and cold patch used for road maintenance. Toy offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 10. REQUEST TO EXTEND CONTRACT WITH ALLIE BROTHERS, INC. FOR UNIFORM ITEMS: Public Service Division, re: to supply uniform items for the period of July 1, 2009 through June 30, 2011 at the unit prices bid in their proposal dated April 22, 2003. (CR 230-03, CR 190-05 and CR 554-07) Paul St. Henry, Superintendent of Public Service, said this is a request to extend the contract with Allie Brothers, Inc. for a 2-year period at the unit prices bid in their proposal from April 2003. Meakin and Toy expressed their appreciation to Allie Brothers for their cooperation in keeping the bid prices the same for the past 7 years. Meakin offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 11. REQUEST TO APPROVE PURCHASE OF ROCK SALT FOR ICE CONTROL: Public Service Division, re: utilizing consortium bid pricing for the period of August 1, 2010 through June 30, 2011. Paul St. Henry, Superintendent of Public Service, said this is a request for an extension of a consortium throughout the tri-county area for rock salt. Laura asked St. Henry if there has been any problem with being able to obtain rock salt when they need it. St. Henry replied no, but said being part of the consortium they are committed to purchasing a required amount per season and this past snow season was a mild season and the City did not use the required amount. Therefore, the City will have to purchase it and pay a fee to store it due to the City's lack of a storage facility for the rock salt. They will utilize that rock salt first at the beginning of the next snow season. 9 Laura offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 12. AWARD OF CONTRACT: Engineering Division, re: for the 2010 Civic Center/Library Drive Parking Lot Improvement and Fire Stations #5 and #6 Parking Lot Paving Project— Contract 10-E. Todd Zilincik, City Engineer, said this is a request to award a contract for the Civic Center/Library Drive Parking Lot Improvement and Fire Stations #5 and #6 Parking Lot Paving Project. Nagle Paving was the lowest bidder in the amount of $640,836.50. They are recommending the contract be awarded to Nagle Paving from budgeted funds. Brosnan asked Zilincik what type of warranty comes with this project. Zilincik replied typically there is a one year warranty after everything is completed. She asked him if that was typical for parking lots and whether or not he has seen extended warranties for them in the past. She indicated a contract that was previously awarded to Nagle Paving for road work in the Old Rosedale Gardens area she felt did not measure up to expected standard they believed. Therefore, she is requesting the subject of warranties in general to the appropriate committee. Meakin and McCann both commented on the Civic Center Drive/Library parking lot improvements, how it will help with the flow of traffic and help to better direct people entering onto Civic Center Drive off of Farmington Road to the new courthouse. Pastor offered the approving resolution for the Consent Agenda. Brosnan offered the resolution on the Consent Agenda referring the subject of road warranties to the Infrastructure and Community Transit Committee for its report and recommendation. DIRECTION: 1) APPROVING CONSENT 2) REFERRING SUBJECT OF ROAD WARRANTIES TO THE INFRASTRUCTURE & COMMUNITY TRANSIT COMMITTEE 13. REQUEST FOR APPROVAL OF APPROPRIATIONS AND EXPENDITURE TO CLOSE OUT THE 2008 CONCRETE ROAD REPAIR (INCLUDING ADA RAMPS): Engineering Division, re: for the Contracts 08-C (Reconstruction) and 08-L (Maintenance). (CR 166-08 and CR 50-09) 10 Todd Zilincik, City Engineer, said this is an effort to close out the 2008 Concrete Road Repair for Contracts 08-C and 08-L. He said this is a case where the contractor, Gaglio P & R Cement Company, terminated the maintenance contract, Contract 08-L, 40% through the project. During that time Florence Cement who had the reconstruction portion of the project, Contract 08-C was the second lowest bidder for the maintenance contract, Contract 08-L, and took over the maintenance contract at their unit prices that were bid. Upon completion of their reconstruction project they started the remaining work of the maintenance contract. Unfortunately, the weather became inclement shortly after they began which prevented them from working until spring of 2009. At that time, the Engineering Division recommended during their selective slab replacement due to sidewalk concerns with liability issues it was better to incorporate removal of the ramps that were of concern. This was done in an effort to maximize the taxpayer's dollars. There were 30 locations done. The total cost of this expenditure was $225,206.00 to be paid to Florence Cement for the completion of the project. Meakin asked Zilincik if they have corrected the scope of the project since then. Zilincik replied yes, indicating it was incorporated in the scope of the contracts for 2009 and 2010. Brosnan offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT AUDIENCE COMMUNICATION: None. Brosnan announced what a great job it is to be a member of the Livonia City Council. She said last Thursday they had an opportunity to do some firearms training with the Livonia Police Department. She along with Brian Meakin, Jim McCann, and Terry Marecki were given a tour of the new gun range. She expressed her appreciation on behalf of herself and colleagues to Chief Stevenson and Captain McDermott as well as the rest of the team that was there that afternoon and spent time with them talking about the training and what goes into operating the range itself. Then on Friday, the she participated in an Arbor Day celebration at Webster School; the Mayor and Brian Meakin were also in attendance. It was a great day. Shelly Moore the Principal of Webster School did an excellent job. She expressed her thanks to Paul St. Henry along with the employees from the Forestry Division; she said they did a great job. She said Bill Craig, Chairman of the Tree Committee attended as well. Brosnan wished President McCann a Happy Birthday, his birthday is Sunday, May 9th. Meakin wished Brosnan a Happy Birthday, her birthday is this Saturday, May 8th 11 President McCann wished all the mothers a Happy Mother's Day this Sunday, May 91n he wished for nice weather for the day. He also wished his daughter, Katie, a Happy Birthday; her birthday was yesterday, May 4th As there were no further questions or comments, Council President McCann adjourned the Study Session at 9:25 p.m. on Wednesday, May 5, 2010. DATED: May 11, 2010 TERRY A. MARECKI CITY CLERK