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HomeMy WebLinkAboutCOUNCIL STUDY - 2010-06-02 CITY OF LIVONIA— CITY COUNCIL MINUTES OF STUDY MEETING HELD JUNE 2, 2010 Meeting was called to order at 8:00 p.m. Present: Conrad Schwartz, John Pastor, Brian Meakin, Laura Toy, Maureen Brosnan and James McCann. Absent: Joe Laura. 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. 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 items: Monday, June 21, 2010 at 7:00 p.m. Petition 2010-02-01-01 submitted by Dr. Nabil Suliman requesting to rezone property located on the west side of Farmington Road, between Curtis Road and Seven Mile Road (18621 Farmington Road), in the Northeast '/4 of Section 9 from R-3 to OS (One Family Residential — 80' x 120' Lots to Office Services). Mayor Kirksey announced that Laura Nash, wife of Robert Nash, former City Councilman and City Clerk, passed away unexpectedly yesterday. Their son Bob Nash works over at the 16th District Court. Mayor Kirksey said he offered the family his deepest sympathy. Visitation will be at the Neeley Turowski Funeral Home tomorrow, June 3, 2010, from 2:00 p.m. to 9:00 p.m. with a service at 7:00 p.m., a funeral mass will be held at 11:00 a.m. at St. Maurice Church on Lyndon just east of Farmington Road with an opportunity to participate at that time with the church opening at 10:15 a.m. Mayor Kirksey thanked President McCann for filling in as Mayor Pro Tem over the long week-end. He said he had an opportunity to go out to Denver, Colorado to visit his son and his daughter-in-law and his granddaughters and take part in the Boulder Boulder Celebration. He said it was a great trip but missed being at the Memorial Service this past Saturday. He said it was the first one he missed in 11 years of being the Mayor. He said it was left in good hands with President McCann. Pastor said he considered Laura Nash his Aunt Laura. He said he grew up with the Nash's and said he considers Bob Nash family as well. He said the memorial donations are to be made out to the John Malone Junior Memorial Fund at the Barbara Ann Karmanos Cancer Institute. He said Laura Nash was a good person and she will be missed. AUDIENCE COMMUNICATION: None. 2 NEW BUSINESS 1. BLOCK PARTY: Andrea M. Kolhoff, Devon-Aire Civic Association, re. to be held Saturday, August 14, 2010, from 10:00 a.m. to 6:00 p.m. on Sunset between Richland and Robert and Robert between Sunset and Flamingo, with a rain date requested of Sunday, August 15, 2010. Andrea Kolhoff was present to answer any questions from Council re: her request. Toy offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 2. REQUEST FROM THE MICHIGAN LIQUOR CONTROL COMMISSION TO INVESTIGATE THE REQUEST FROM LAS PALAPAS, LLC TO TRANSFER OWNERSHIP OF AN ESCROWED 2009 CLASS C LICENSED BUSINESS FROM BOGARTS BILLIARDS & CAFE, INC.; TRANSFER LOCATION FROM 30282 PLYMOUTH, LIVONIA, MI 48150, WAYNE COUNTY; REQUESTS NEW ENTERTAINMENT PERMIT AND NEW OFFICIAL PERMIT (FOOD) AND SUNDAY SALES: Division of Police, re: for the business located at 33308 Plymouth, Livonia, MI 48150. Cesar Ochoa, 14172 Arlene Lane, Belleville, was present to answer any questions from Council. Toy offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 3. REQUEST TO APPROVE CONTRACT FOR CARETAKING SERVICES IN THE HISTORICAL VILLAGE AT GREENMEAD: Department of Community Resources, re: with independent contractor, Brad Guerro, for the period June 1, 2010 through May 31, 2012. Linda McCann, Director of Community Resources was present to ask Council to approve the contract for caretaking services in the Historical Village at Greenmead with Brad Guerro, an independent contractor. Mrs. McCann said there were 7 applications received, and 3 applicants were interviewed and Mr. Guerro was selected. Brosnan offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 3 4. REQUEST TO APPROVE GOLF COURSE FUND DEFICIT ELIMINATION PLAN: Department of Finance, re: as required by the Michigan Department of Treasury due to the net asset presentation required by GASB 34. Coline Coleman, Chief Accountant was present to ask Council approval of the Golf Course Fund Deficit Elimination Plan, as required by the State of Michigan Department of Treasury. She stated that some of the elements of the plan include anticipated new revenue generated by the new clubhouse at Whispering Willows Golf Course and no anticipated capital purchases from the fund in 2010 and 2011. Brosnan asked Coleman to confirm that the plan is basically to break even with the new revenue generated and by not making any capital purchases; they will break even with the $64,000 deficit by 2011. Coleman replied that was correct. Brosnan asked if more time was allowed or needed. Coleman responded stating that they are confident this goal can be accomplished by 2011. Toy offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 5. REQUESTING TO ADJUST THE ADMISSION INCOME LIMITS FOR NEWBURGH VILLAGE, SILVER VILLAGE AND CITY-OWNED HOMES: Livonia Housing Commission, re: to reflect Detroit metropolitan area median income figures. Cindy LaFond was present to present the request to Council. She said the figures before them are income limits set by HUD annually. She stated this year's figures for the Metropolitan Detroit area are moderately less than last year's income figures. She said these incomes will be used to qualify residents for Silver Village, Newburgh Village and the City-owned homes. They also used to qualify residents in the Community Development Block Grant Programs as well. She said they are asking for Council's approval to adjust their income limits to match HUD's income limits. Toy asked if they have had up to 6 people. Ms. LaFond responded stating they have for their Community Development Programs, perhaps not for Newburgh Village or Silver Village, but for families for their Housing Rehabilitation Programs they have. Brosnan asked Ms. LaFond if it was necessary to change the income limits to meet HUD's income limits for federal funding. LaFond replied yes. Brosnan also asked if the income limits will continue to decline along with the economy and then rise again as the economy improves. LaFond said it would appear so, but could not say when it would change again. Brosnan said for the audience to better understand what they are talking about, she said the income limits for a 4 single person looking for housing in Livonia is currently $39,750 and the revised limit would be $39,100. Pastor asked whether any of the residents currently receiving housing assistance would be affected by this. LaFond replied by stating Mr. Inglis told her it would not affect any of their current residents. Toy offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 6. REQUEST FOR AUTHORIZATION TO SELL CITY-OWNED PROPERTY PURCHASED FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT $1.00 HOME PROGRAM: Livonia Housing Commission, re: located at 9994 E. Clements Circle for a total sale price of $114,000.00. (CR 552-08) Cindy LaFond said this is the third property that they are selling. She said they are pleased to provide Council with a purchase agreement. They purchaser meets the guidelines, has secured financing and has participated in the Home Ownership Training and is ready to go as soon as he receives approval. Brosnan said she did stop by the Housing Department offices and said she had an opportunity to look at some before and after pictures of this property and the other properties they are rehabilitating. She said it is a wonderful program and said she even drove by and looked at the home because the pictures were so impressive. She said next she would like to physically see the home before the rehabilitation begins and observer the work as it is done and see the home when the work is completed. LaFond responded that she would see what she could do to set that up. Pastor offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 7. REQUEST FOR AUTHORIZATION TO SELL CITY-OWNED PROPERTY PURCHASED FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT $1.00 HOME PROGRAM: Livonia Housing Commission, re: located at 29115 West Chicago for a total sale price of$93,000.00. (CR 552-08) Cindy LaFond said this is another home they have rehabilitated and using the required criteria, in this case, they are selling the home for the acquisition price plus the cost of rehabilitation. She said it is a little lower than the actual appraisal. They have a buyer and she has secured a mortgage, meets the guidelines and has completed the required Home Ownership Training. They are seeking Council approval to authorize the sale of the property. 5 Meakin offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 8. REQUEST TO ADJUST WATER AND SEWER CONSUMPTION RATES, INDUSTRIAL SURCHARGE RATE AND INDUSTRIAL WASTE CONTROL CHARGE: Water and Sewer Board, re: to become effective with the first billing on and after July 1, 2010. Kevin Roney, Public Utilities Manager, said it is that time of year that they have to look at the water and sewer rates. He said it is the recommendation of the Water and Sewer Board to increase 3 rates; 2 of which affect only commercial and industrial customers, one is called the Industrial Surcharge Rate and the other is called the Industrial Waste Control Charge. The third rate is called the Water and Sewer Consumption Rates which affects all customers in Livonia. He said this year they are recommending a 14.9% in the Consumption Rates and added that only 8% of the Consumption Rates is for local operating costs and 92% is due to wholesale billing factors from Detroit Water and Sewer for the water and Wayne County for the treatment of the water. He said the increase has been reviewed by City staff and also by other cities as a collaborative effort known as a Technical Advisory Committee to make sure they understand it, that they are fair and equitable. All the other cities are pretty much in the same position as Livonia, especially this year. He said Westland is passing along approximately a 16% increase, Plymouth Township is in the 15%-16% range, Southfield is almost 10%, Redford is almost 14% and Canton Township has a 28% water rate increase and a 11.8% sewer rate increase. Some of the factors for the increased rates are the water sales trending downward in Detroit, another is Capital costs what they have to spend to replace aging plants, equipment, transmission mains; that continues to go up. These are the two major contributing factors for the rate increases. He said their rate component last year was significantly decreased. This year with the rate increase they will be where they were 4 years ago, with their rate component, so they have held their costs in line. He said this summer customers will be receiving a flyer regarding recommended times for irrigation outside and times when to avoid irrigation outside. He said they can have an impact on the rates because when they buy their water from Detroit, how much they buy at peak times influences the rate that they have to pay. He encouraged customers to read that flyer and commit those practices to memory and start using them, especially the avoiding of watering during 6 a.m. to 9 a.m. and 6 p.m. to 9 p.m. for outdoor watering. He said the effects of this rate increase for the typical residential bill of $168 it will go up to $192, for a typical $88 residential bill it will go up to $100. He said it will be a noticeable increase. Toy said this is an issue that she has personally fought and was vetoed twice by the governor to try and get representation on this Board because of the unfair costs Detroit Water and Sewer charges its customers. There are 4 different 6 counties that are supplied and they have no representation on that Board. She said it seems like every time there is any communication from them it is a rate increase and 95% or so goes to them. She said she is not trying to pit suburb against city but there are some very unfair issues that go along with this and said these counties are completely handcuffed against the issues. She said the Detroit Water and Sewer Board is a monopoly on this area and there is no representation and it is a shame. She asked Roney if there was any wiggle room at all. Roney said he is very hesitant to go that way, he said the reason being is that they did that last year. They didn't pass along everything that they needed to break even. They had a bad year, in large part due to the weather, but the problem is that if they do it again this year, at some point the City will be at the point where Canton Township found itself at this year. He said he was told that the reason Canton Township is having a 28% increase in their water consumption rates is because they wouldn't pass along the water increases that were recommended. Toy said she is concerned for both the City and the consumers during these economic times can do with or without the increase. Also, whether or not the Board projects future increases for water and sewer consumption rates. She asked Roney if anyone has an opportunity to meet with them on a regular basis. He responded by stating in the packet he provided to Council he mentions that if the water sales continue to trend downward then it will always have a tendency to drive rates up. He said they are hoping they are near the end of the water sales bottoming out. He said as far as dialogue, they have improved by at least having the Technical Advisory Committees on specific topics. He said they are open meetings and anyone who is interested could attend them. He said he could not say that they get every bit of information they ask for in a timely manner but it is much better now than it was 10 years ago when they were reluctant to share information. Toy said it would be helpful to have to dates and times and location of where the public can meet with them. She said Livonia is a very important customer to them and the City has to remain active and not sit on its hands. Meakin thanked Roney for his effort in preparing Council for this meeting. He said the information shows Livonia is still lower than some surrounding communities. He said it is unfortunate they have to increase the rates at this time but they have to pass it along. Brosnan asked Roney how is it he believes water sales have bottomed out, and with this increase isn't it fair to assume some customers will try to be more conservative with their usage. Roney responded by clarifying he hopes that water sales have bottomed out, not that he believed they had. He said yes as they raise rates he is sure people will try to conserve. He said the residents that water their lawns and gardens; he is not trying to say anything to discourage them from doing that. He is not out to conserve water in that respect, he was only mentioning earlier the peak times which result in higher rates with the hopes that people would be encouraged to water their lawns and garden at times other than those mentioned, not to ask them not to water their lawns and gardens. She 7 asked him to explain what happened last year. She said in her estimation that is partly why the City is looking at a 14.9% increase this year is because the Council was reluctant to at least keep stable the amount of money the City needed in order to recover its costs and according to Roney's report the City really only got lucky that it didn't get hit with a bigger loss because it had that $800,000.00 credit that came its way. Roney said last year's recommendation was to increase the rates approximately 7'/2 %, he didn't have the exact figure readily available, and when it was all said and done a rate of increase of 5'/2 % was passed along to the customers. At the time they had indicated in a letter to Council that it would about a $475,000.00 negative impact on the fund. He said he did some rough calculations and determined that had the Council approved the full percentage increase that was recommended, this year they would be asking for about a 13% instead this year. He said the concern is that if they do not approve the increase as recommended the fund will lose money. Brosnan said she thinks the point is that the Council has a history of having to deal with these increases from the Detroit Water and Sewer Board and they don't like it anymore than the customers. However, in order to put the City in a stable position it shouldn't drain its Water and Sewer Fund and find itself in a position of having to pass these increases. She said she feels even more threatened this year, by a loss to that fund because Council backed off of making a prudent decision last year which was to keep the increase in place that was needed. She said if the City had not seen that $800,000.00 credit it would be in a completely differently position this year. The chances of seeing another $800,000.00 credit this year don't exist. President McCann said he wanted to correct one thing, he said they are only raising the City's portion of this rate by 0.12 of the rate increase or 1.2 % of the rate increase, the remainder of the 14% is actually from the City of Detroit. The Council made a decision in an effort the help its customers in the hopes of a dry summer as predicted, however, it turned out not to be dry but rather a wet summer. Consumption is lower during wet summers. Whether or not because the City had that money come in, there are no additional costs to the customers. The 2 '/2 % still would not have made up the $800,000.00. He said this is the normal increase with the additional charges from Detroit Water and Sewer and Wayne County. This not only covers are water and sewage but it also covers repairs. He said they really can not afford at this point to back down from maintaining this. The increase will help maintain the property values and quality of life within our community. Pastor said he was one of the Councilmembers that was leading that charge to not raise the rates last year and he said it was because they knew about the $800,000.00 credit and because of the hard times chose not to raise the rates as high as they had recommended. He said because of the extra money it was an option, it was the right thing to do at the time, and this year he will be supporting the recommended increase because it is the right thing to do at this time. He said he is hopeful that times will improve for those who are struggling to make ends 8 meet and having difficulty paying their bills and wished there was another option available like the credit last year, unfortunately that is not the case. Meakin offered the approving resolution for the Regular Agenda. DIRECTION: APPROVING REGULAR 9. SIGN PERMIT APPLICATION: Planning Commission, re: Petition 2010-03-SN- 01 submitted by Michael A. Tsakoff, AIA, requesting approval for a ground sign for the Woodland Plaza shopping center, on property located on the north side of Plymouth Road, between Middlebelt Road and Sears Drive (30200-30282 Plymouth Road), in the Southeast '/4 of Section 26. Mark Taormina, City Planner said explained this request in detail and said they have received support from the Plymouth Road Development Authority (PRDA), President McCann said the Council would receive and file the letter dated May 26, 2010 from John Nagy, Director of the PRDA. Michael Tsakoff, 25036 Ford Road, Dearborn Heights, MI 48127, said he appreciated working with the Planning Department and PRDA and said his original plan was much more different than the current plan; he said after listening to their suggestions and recommendations they have come up with the plan before Council tonight for their approval. Meakin through the Chair to Taormina asked why this was before Council and not the Zoning Board. Taormina responded stating it goes before the Planning Commission, then Council and then Zoning Board of Appeals. He said any approval would be contingent upon them obtaining a variance from the Zoning Board of Appeals as outlined the Planning Commission's recommendation. Brosnan asked if they had looked at a conforming sign. She said she had an issue with the height of the sign. The petitioner responded by stating the existing sign is about 6 '/2 or 7 feet, he said the proposed sign is just under 11 feet which about 3 feet higher than what the Ordinance allows. He said their original plan called for 9" letters and the current plan reflects 8" letters he said it would be difficult to squeeze that down any smaller. Brosnan said many businesses along Plymouth Road have made major investments in their property and Council has denied their requests. She asked Taormina if he could provide Council with a report of any other businesses along Plymouth Road that have perhaps received an exception like this one. Taormina said to the best of his recollection he believes Bill Brown Used Cars received a 1 or 2 foot variance. He said he would have to go back and do some research and report back to Council. Toy through the Chair to Taormina asked why the Planning Commission asked for the stipulation of turning the sign off one hour after the business closes. Taormina replied stating this is more or less a standard request. She asked the 9 petitioner if he feels that this sign will attract more businesses to the Shopping Center. He responded yes, he believes it would. Toy offered the approving resolution for the Regular Agenda. Pastor said this Shopping Center is different from others and it is difficult at time to see the signs from the road. The grade and landscaping obscure the view in certain areas. He said he would support the Planning Commission's recommendation. President McCann concurred with Pastor's comments regarding the difficulty seeing the signs and said it has resulted in a long period of vacancy for these spaces and feels perhaps this may help them in an effort to lease their spaces. Meakin offered two resolutions; the denying resolution and a resolution referring the item to the Committee of the Whole for its report and recommendation. He said the trend for the last 10 years has been to list all the businesses on one sign and it's not helping the retailers by having 12 different names on a single sign. He said 15 years ago the Shopping Centers would have one sign that had the name of the Shopping Center. He feels it was much more reasonable for companies to market that way. Meakin offered the denying resolution for the Regular Agenda and the resolution referring the item to the Committee of the Whole. DIRECTION: (1) APPROVING REGULAR (2) DENYING (3) REFER TO COMMITTEE OF THE WHOLE 10. WAIVER PETITION: Planning Commission, re: Petition 2010-04-02-06 submitted by Lone Pine Corral, Inc. requesting approval to utilize a Class C Liquor License (sale of beer, wine and spirits for consumption on the premises) in connection with a full service restaurant (Time Out Bar and Grill) on property located on the north side of Plymouth Road, between Levan Road and Newburgh Road (36480 Plymouth Road), in the Southwest '/4 of Section 29. Danilo Josifoski, 37630 Plymouth Road, Livonia, MI 48150, was present to answer any questions Council had regarding his request. Brosnan asked the Petitioner what his time line was and if he was going to be making any renovations to the property. He responded saying he hopes to be open in August or September and said he would be making some renovations; he had some pictures for Council. 10 Taormina pointed out to Council that a separate resolution is needed for Waiver of Separation requirement because there is another Class C establishment within 1,000 feet. Meakin offered the approving resolution for the Consent Agenda to utilize the Class C Liquor License. Meakin also offered the approving resolution for the Consent Agenda for the Waiver of Separation requirement. DIRECTION: 1) APPROVING CONSENT 2) APPROVING FOR WAIVER OF SEPARATION REQUIREMENT 11. WAIVER PETITION: Planning Commission, re: Petition 2010-04-02-08 submitted by The Kroger Company of Michigan requesting approval for outdoor storage and display of merchandise in front of the Kroger Store on property located on the south side of Eight Mile Road, between Farmington Road and Gill Road (33523 Eight Mile Road), in the Northeast '/4 of Section 4. At the direction of the Chair, because the petitioner was not present, this item was moved to the next Study Meeting of June 14, 2010. 12. PROPOSED AMENDMENT TO THE LIVONIA CODE OF ORDINANCES, AS AMENDED: Department of Law, re: to Chapter 03 (General Licensing Procedure) of Title 5, Section 080(A)(1), to add the provision that withholding pertinent information requested by the City as part of the license application investigation shall be grounds for denial or revocation of license. Don Knapp, City Attorney said the Law Department has undertaken the task of slowly but surely reviewing the Code of Ordinances to see whether or not there are things that are archaic or need improvement and when that is the case they are suggesting change. This is the first in one of those amendments and it simply makes a change that in the event pertinent information is withheld from a License Application that would be grounds to revoke that license. Currently the Ordinance provides that if there is fraud or misrepresentation or any sort of false statement that is also grounds for revocation. This would simply add that omissions that are substantive would also be grounds for revocation. Brosnan said while she is appreciative that this process that the Law Department has undertaken she inquired if there have been any instances to which this would apply. Knapp responded that he was unaware of any. Toy offered the approving resolution for a First Reading for the Regular Agenda. DIRECTION: APPROVING - FIRST READING REGULAR 11 AUDIENCE COMMUNICATION: Mayor Kirksey asked as a personal privilege to speak again on the subject of increases for Water and Sewer Rates. He said he was appreciative of Council's support on the matter. He said there was a reference made to the $800,000 - $850,000 that was factored into last year's budget. He said this was money that offset some of the increase in the expenses. He said a little bit of history on that was during his second term an appeal went to the provider of these services, the City's contention was that there had been an overcharge. It took from the end of that second term until this past year to resolve the matter. He added that Mayor Engebretson and the Law Department also worked hard on the matter. Brosnan asked for a report and recommendation for a Landscaping Plan from Administration for the Plymouth Place Plaza. She said in front of the center at Plymouth just west of Stark Road, all of the trees have been clear cut. She said last year Council approved a site plan that called for a modification of the berm in front of the Shopping Center. She said no where on the site plan did she see that the level of clear cutting was approved. She said there are literally no trees left standing in front of that building. She said what she would like to ask Administration for its report and recommendation on whether the plan that the Council had approved, in fact has been conformed to. The reason for asking for this at this time is that she understands that the owner of that facility is going to be before Council in a couple of weeks requesting a Liquor License. She said while she would love to see him obtain that Liquor License, she also wants to make sure that the modifications to the Landscaping Plan and the Site Plan that were approved last year are kept. President McCann said he believes that request can be made without a formal resolution. President McCann said he observed Mayor Kirksey nodding in concurrence. As there were no further questions or comments, Council President McCann adjourned the Study Session at 9:10 p.m. on Wednesday, June 2, 2010. DATED: June 9, 2010 TERRY A. MARECKI CITY CLERK