HomeMy WebLinkAboutSTUDY - 2017-07-24
CITY OF LIVONIA – CITY COUNCIL
MINUTES OF STUDY MEETING HELD JULY 24, 2017
Meeting was called to order at 8:00 p.m. by President McIntyre. Present: Brian
Meakin, Maureen Miller Brosnan, Jim Jolly, Cathy White, Scott Bahr, and Kathleen
McIntyre. Absent: Brandon Kritzman.
Elected and appointed officials present: Todd Zilincik, City Engineer; Don Knapp,
City Attorney; Susan M. Nash, City Clerk; Scott Miller, City Planner IV; Curtis Caid,
Chief of Police; Donald Rohraff, Director of Public Works; and Mayor Dennis Wright.
AUDIENCE COMMUNICATION: None
1. REQUEST TO WAIVE THE SIDEWALK REQUIREMENT: Heather Shymanski, re:
for the newly constructed home at 18551 Laurel Drive.
Heather Shymanski presented her request to Council.They are seeking Council
approval to waive the sidewalk requirement in front of their newly constructed home
at 18551 Laurel Drive.
Jolly offered the approving resolution for the Consent Agenda.
DIRECTION: APPROVING CONSENT
2. REQUEST TO PERMIT THE OPERATION OF A MEDICAL MARIHUANA
BUSINESS: Jeffrey M. Van Loon, P.L.L.C., re: same.
Jeffrey M. Van Loon, 40900 Woodward Ave., Suite 111, Bloomfield Hills, presented
the request to Council. He expressed his clients desire to operate a medical
marihuana dispensary business in Livonia. He said this is an opportunity for the City
to earn tremendous amounts of money. A windfall of tax revenue is coming to
municipalities across the state of Michigan for those municipalities that choose to
participate in the transformation of the Michigan Medical Marihuana market from a
"cottage industry" to a corporate business environment. The medical marihuana
market began in Michigan in 2008 as a result of a successful citizen sponsored
ballot initiative. However, the laws passed through the ballot initiative in 2008 left
many areas of the administration of this type of business unanswered or certain
subject matter was not even addressed in the 2008 law. Thus, for the past eight (8)
years, the medical marihuana business never developed beyond a bunch of small
businesses in Michigan. Furthermore, no special excise taxes were ever included in
the original law. Finally, law enforcement, the courts and municipalities had a very
difficult time interpreting the existing laws and how and what to enforce. These
factors combined with observing from a far the immense success of this type of
business, when properly regulated and with proper statutes and ordinances in place,
in states such as Colorado, California, and Oregon over the past eight (8) years
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motivated the Michigan Legislature and the Governor to pass a series of new laws
on December 20, 2016 to clarify existing discrepancies in the existing law, to permit
the operations of large scale corporate type businesses and to put in place taxes so
that the governments (state, county and municipal) who choose to permit this activity
in their cities will receive a financial benefit for approving such entities. His firm
represents a group of persons interested in participating in this business. They seek
to set up some of their proposed operations in the City of Livonia. The group
consists of persons who are attorneys, pharmacist, business owner and former CEO
of large corporation. He understands while there may be some reservations with
regard to the geographical location of this type of business, they are open to a
location within an industrially zoned district far enough away from schools or other
entities of concern. He said it wouldn’t impact the community any more than your
typical corner party store. He said he would assert that it would have far less of an
impact on the community than the typical corner party store. He said you can check
statistics, there aren’t many people that are involved in accidents as a result of
smoking or ingesting marihuana. He said it has been demonstrated at the University-
level to provide some medicinal benefits. They would like to be part of a research
study program and have the interest of the Veterans Affairs.
White said while this may provide a tax benefit to the City, she is not in favor of this
type of business within the City of Livonia
White offered the approving resolution for No Further Action for the Consent
Agenda.
Police Chief Curtis Caid spoke in opposition of allowing grow facilities or
dispensaries in the City of Livonia. He said, primarily because it is still against
federal law. The DEA has still categorized marihuana in that way. He did say that he
is sympathetic to people with medical ailments that may wish to use marihuana for
medicinal purposes. He said if it were allowed it would pose security issues for the
law enforcement personnel. He cited an incident in another state where an officer
responded to a broken window at a grow facility and when he hopped the fence to
investigate, there was a booby trap with plywood boards with deck screws that went
into the officer’s feet. He said law does require an Ordinance be enacted, he said as
the Police Chief he would not encourage that.
Van Loon responded by noting that a 3% excise tax on all transactions is set aside
for law enforcement to help supplement the costs associated with monitoring the
legal operation of the facility.
Councilmembers Bahr, Jolly and Brosnan also expressed their support of no further
action on this item.
Diane Montez, 14278 Henry Ruff, Founder of Livonia Save Our Youth Coalition,
expressed her opposition of this request. She said states with medical marihuana
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laws show a higher usage of marihuana among the youth. She quoted an article in a
local newspaper that indicated that drugged driving crashes are increasing.
Tanya Moore, Dearborn Heights, owner of Sweet Dreams Cannabis Company, she
said their company makes lotions and it is the company that they would like to put in
Livonia. She said they don’t cater to potheads, they cater to middle aged and older
adults who suffer from diseases such as arthritis and cerebral palsy among others.
They have five (5) different lotions that are blended with oils and cannabis. She said
that is the company that they would like to open in Livonia. She said they are a
medical based company and asked Council to look at their intentions, it is strictly for
medicinal purposes.
DIRECTION: NO FURTHER ACTION CONSENT
3. TAX RATE REQUEST FOR THE WAYNE COUNTY REGIONAL EDUCATIONAL
SERVICE AGENCY (RESA) FOR THE 2017 SCHOOL YEAR: Office of the City
Clerk, re: forwarding communication from Tamara Dust, Finance Manager of the
Wayne County Regional Educational Service Agency (RESA), requesting to set the
rate of tax to be levied and requesting that it be collected as a summer tax.
At the Direction of the Chair, this item is to be received and filed for the information
of the Council for the Consent Agenda.
DIRECTION: RECEIVE & FILE CONSENT
4. TAX RATE REQUEST FOR THE STATE OF MICHIGAN, STATE EDUCATION TAX
FOR THE YEAR 2017: Office of the City Clerk, re: forwarding a communication
from N.A. Khouri, State Treasurer, requesting to set the rate of tax to be levied and
requesting that it be collected as a summer tax.
At the Direction of the Chair, this item is to be received and filed for the information
of the Council for the Consent Agenda.
DIRECTION: RECEIVE & FILE CONSENT
5. REQUEST TO APPROVE 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: for the 5310 Vehicle Grant through
SMART for the Livonia Community Transit Program.
Don Knapp, City Attorney, presented the request to Council. He said technically this
is an amendment to the City’s agreement with SMART but there is no substance of
changes. This is more of a federal requirement.
Meakin offered the approving resolution for the Consent Agenda.
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DIRECTION: APPROVING CONSENT
6. REQUEST TO APPROVE PURCHASES WITH SOLE SUPPLIER, EJ USA, INC.
f/k/a EAST JORDAN IRON WORKS, FOR A PERIOD OF ONE (1) YEAR: Public
Service Division, re: for the purchase of stormwater, water main and sanitary
manhole-related items in an amount not to exceed $75,000.00 annually.
Don Rohraff, Director of Public Works, presented the request to Council. For many
years, the Department of Public Works has made purchases from the above
referenced vendor. The various items sold to the City by EJ USA, Inc. include fire
hydrants, water main valves, and sanitary and storm manhole frames and covers.
These items are manufactured in state by and supplied solely by EJ USA, Inc. (the
manhole covers are cast at the foundry with the City logo and name). They have
checked the unit prices charged for these items and found them to be comparable
with those paid by other municipalities. The pricing is the same across the board for
all communities using comparable products. The City would experience large up-
front charges to go to another foundry and set up the entire City casting information.
In addition, there would be a large increase in the freight charges the City would
encounter going to a new manufacturer located outside Michigan on every order
placed. EJ USA, Inc. has been very responsive in the past with all of the City's
needs as well as having a distribution center located in Oak Park. EJ USA, Inc. has
confirmed that there will be no increase in prices during the 2017-2018 budget year.
It is the recommendation of the Department of Public Works that City Council
authorize waive the competitive bidding process and authorize purchases from EJ
USA, Inc., 13001 Northend Avenue, Oak Park, Ml 48237 for storm water, water main
and sanitary manhole related items not to exceed $75,000.00 annually from funds
already budgeted for this purpose.
Bahr offered the approving resolution for the Consent Agenda.
DIRECTION: APPROVING CONSENT
7. REQUEST TO REVISE PREVIOUSLY APPROVED CONTRACT WITH ETNA
SUPPLY COMPANY, THE SOLE SOURCE PROVIDER OF SENSUS METERS IN
MICHIGAN: Public Service Division, re: for water meters and supplies in an amount
not to exceed $1,500,000.00 annually. (CR 90-16)
Don Rohraff, Director of Public Works, presented the request to Council. The Public
Service Division has been working extremely hard installing meter endpoints
(outside reading devices) as well as installing new meters to update our equipment
throughout the city. City Council approved the contract with Etna Supply company
R#90-16 on March 9, 2016, with a not-to-exceed amount of $325,000 annually for
meters and supplies. The department has tried to buy endpoints and meters in bulk
to realize the best financial savings. For example, 2,000 endpoints cost $260,000
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leaving only $65,000 budgeted for the rest of the year. On average, the department
has been installing 400 endpoints a month, meaning that after five months, they
have needed to reorder a couple times a year or make a larger order. In summary,
the department has realized a need to raise the budgeted not-to-exceed amount in
order to not reduce the meter and supplies budget covering everyday operational
needs. The updating of our endpoints and meters will help maintain minimal water
Joss, improve efficiency in meter reading and water billing, and allow the City to
increase water monthly billing. The Public Service Division has been using Sensus
Meters and parts for over 16 years and has been very pleased with the products and
service received. Etna Supply Co. is the sole supplier of Sensus Meters in Michigan.
Etna Supply Co. has provided the City of Livonia with exceptional service and has
been very responsive to any needs. Included in the contract is a price reduction on
the purchase of meters or endpoints if purchased in lots of 2,000 or more. This
pricing was requested by the department for the option of buying in bulk for a cost
savings. The department is going to continue its aggressive approach for installing
endpoints and meters. They have currently installed almost 5,100 endpoints. The
department is looking to increase the current budgeted amount by $845,500 and
increase the "not-to-exceed" amount to $1.5 million annually. Budgeted funds are
available in Water and Sewer unexpended fund balance to cover the requested
increase.
It is the recommendation of the Public Service Division that Council authorize an
increase in purchases from Etna Supply Co., 529 32nd Street SE, Grand Rapids, Ml
49548 for water meters and supplies in the amount of $845,500.00 for the remainder
of the current budget year. Also, authorize purchases from Etna Supply Co., 529
32nd Street SE, Grand Rapids, Ml 49548 for water meters and supplies at the unit
pricing quoted. The budgeted funds are available in the Water and Sewer Fund
Unexpended Fund balance in an amount not to exceed $1,500,000 annually.
Meakin asked Rohraff if there is any chance that they could expire before the City
installs them. Rohraff replied no. He said they haven’t had any problems. Meakin
asked how a large purchase like this affects the Water and Sewer Fund. He said
they have it in the Unexpended Fund balance. He said in the upcoming budget they
have it budgeted into the budget. The impact would be just for the remainder of this
current year.
Brosnan asked how long the contract would go for the $1.5 million annually. Rohraff
replied it is a 3-year contract with a 2-year option on the City’s part if the City wanted
to extend the contract for an additional 2 years.
Meakin offered the approving resolution for the Consent Agenda.
DIRECTION: APPROVING CONSENT
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8. REQUEST TO APPROVE AN INTERGOVERNMENTAL AGREEMENT BETWEEN
THE COUNTY OF WAYNE AND THE CITY OF LIVONIA: Engineering Division, re:
for the resurfacing of Farmington Road from Seven Mile Road to Base Line Road,
with the city’s participation to be $119,645.00 from budgeted funds.
Todd Zilincik, City Engineer, presented the request to Council. The Engineering
Division is in receipt of an Intergovernmental Agreement (IGA) dated July 3, 2017
between Wayne County and the City of Livonia for the resurfacing of Farmington
Road from Seven Mile Road to Base Line Road. The total cost for this project is
estimated at $1,516,165. The proposed City participation is estimated at 50% of the
Local Share (after Federal Aid) in the amount of $119,645. There was $120,000
budgeted for this project. The contractor for this project is Cadillac Asphalt, LLC.
They have done numerous projects for Wayne County and are currently the
contractor for the Plymouth Road Resurfacing Project from Farmington Road to
Telegraph Road. This project involves the hot mix asphalt cold milling and
resurfacing work along Farmington Road from Seven Mile Road to Base Line Road;
including concrete pavement repair, bridge epoxy overlay, concrete sidewalk ramp,
guardrail installation, permanent signing, and pavement marking work; and all
together with necessary related work. The County will be responsible for both the
preliminary engineering and the construction engineering. Construction is anticipated
to be completed by mid-October. The proposed agreement has been reviewed by
the Engineering Division and has been reviewed as to form by the Department of
Law. Based on the above information, they respectfully recommend that the City
Council proceed as follows:
Authorize the Mayor and the City Clerk to execute this agreement for and on
behalf of the City of Livonia.
Authorize an expenditure of $119,645.00 from funds budgeted for 2017 in Major
Street Fund - City Participation in MDOT and County Projects Account.
Authorize the City Engineer to approve minor adjustments in the work, as
required.
Please note that Wayne County has also requested a deposit check in the amount of
$59,822.00 as a Working Capital Advance.
Bahr asked Zilincik if the City shares in the cost whenever the County does road
repairs in the City. Zilincik said it is normally about 9% unless it is road that borders
another city or community then the 9% is shared.
Bahr offered the approving resolution for the Consent Agenda.
DIRECTION: APPROVING CONSENT
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9. AWARD OF CONSTRUCTION CONTRACT AND THE CONSTRUCTION
ENGINEERING FOR THE NEWBURGH ROAD AND AMRHEIN ROAD
INTERSECTION IMPROVEMENTS AND TRAFFIC SIGNAL UPGRADE:
Engineering Division, re: in conjunction with the Amrhein Reconstruction Project for
a dedicated right turn lane for southbound Newburgh Road at Amrhein Road along
with traffic signals to be modernized with a box span configuration with a
reimbursement up to $800,000.00 from Ashley Capital.
DIRECTION: APPROVING CONSENT
Todd Zilincik, City Engineer, presented the request to Council. In conjunction with
the Amrhein Reconstruction Project, it has been determined that the intersection of
Amrhein Road and Newburgh Road also needs to improved. These improvements
will include a dedicated right-turn lane for southbound Newburgh Road at Amrhein
Road along with the traffic signals being modernized with a box span configuration
and relocation of utility poles. Based on this determination, our consultant, OHM
Advisors (OHM) finalized plans and specifications for this project. Due to the time-
sensitive nature of completing this project by early fall, bids were solicited from three
(3) local companies to perform this work. The bids were opened on July 10, 2017
and summarized as follows:
NAME OF BIDDER AMOUNT OF BID
Hard Rock Concrete, Inc. $699,146.11
Westland, Ml
30 Inspector Days
Florence Cement Co. $727,323.87
Shelby Twp., Ml
50 Inspector Days
GM & Sons, Inc. $743,676.00
Whitmore Lake
80 Inspector Days
These bids are good until November 20, 2017.
OHM has checked the references of Hard Rock Concrete, Inc., and is familiar with
their work, as Hard Rock Concrete, Inc., has performed numerous projects for the
City of Livonia, including the Concrete Road Paving Programs from 2013 through
2017 as well as projects for many local communities. OHM is recommending the
award to this contractor in conjunction with the City of Livonia Engineering
Department.
In order to proceed with this project, they respectfully recommend that the Council
take the following actions:
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Authorize an appropriation and expenditure not to exceed $800,000 from the
Unexpended Fund Balance of the Major Road Fund (202) for the construction
and construction engineering for this project. The funds will be
advanced/reimbursed by Ashley Capitol to the City of Livonia.
Award the construction contract and authorize an expenditure in an amount not
to exceed $700,000 to Hard Rock Concrete Inc., 38146 Abruzzi Drive, Westland,
Ml 48185. The award should be on the basis of the bid prices, said amount to be
adjusted based upon the quantities of work actually completed.
Authorize the Mayor and the City Clerk to execute an amendment to the
Engineering contract with OHM Advisors, 34000 Plymouth Road, Livonia,
Michigan 48150 as the designated consultant to provide construction engineering
services and approve an expenditure for the Newburgh Road and Amrhein Road
Intersection Improvements and Traffic Signal Upgrade in an amount not to
exceed $100,000.
Authorize the City Engineer to approve minor adjustments in the work, as
required.
Meakin offered the approving resolution for the Regular Agenda.
Brosnan asked Zilincik to clarify with regard to cost sharing, whether they are
reimbursing the City for the $800,000. Zilincik said yes, that is correct.
DIRECTION: APPROVING REGULAR
10. REQUEST TO EXPAND THE VEGETATION MANAGEMENT EASEMENT BY
INTERNATIONAL TRANSMISSION COMPANY: Department of Law, re: for five
properties containing single family homes located at 36600 Ann Arbor Trail, 36622
and 36664 Angeline Circle, 36585 and 36586 Pinetree.
Don Knapp, City Attorney, presented the request to Council. Please be advised that
International Transmission Company, which does business as ITC Transmission
("ITC") through its attorney, Todd Schebor, contacted me and advised that ITC
would be seeking to expand its vegetation management easement at five parcels of
property in the City of Livonia. He further advised that the City and the other parties
with an interest in these five parcels would receive an offer to purchase the
vegetation management easement. The subject parcels are residentially zoned
properties containing single family homes located at:
(1) 36600 Ann Arbor Trail
(2) 36622 Angeline Circle
(3) 36664 Angeline Circle
(4) 36585 Pinetree
(5) 36586 Pinetree.
For your information, a map identifying the location of each property has been
provided. While the owners of each these parcels will be most affected by ITC's
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proposed expansion of the vegetation management easement, everyone with an
interest in a given parcel is provided notice of ITC's offer to purchase this easement.
It is one of the first steps in the process before ITC can file a complaint in the Wayne
County Circuit Court to take the vegetation management easement through the
process known as eminent domain, which is also known as condemnation.
The Michigan Uniform Condemnation Procedures Act (MCL 213.51 et. seq.) permits
ITC to make one offer to all of the parties with an interest in a parcel. An electronic
copy of Good Faith Written Offers ("Offers"), with appraisals, were provided to me on
June 27, 2017 and immediately forwarded to City Assessor Linda Gosselin and City
Engineer Todd J. Zilincik for their review and comment. Hard copies of the Offers
were received by City Clerk's Office on June 29, 2017 from ITC relative to each
property. For your information, copies of the Offers, including the appraisals, are
provided. The Offers provide that if all of the parties have not accepted in
accordance with the terms of the Offer by July 7, 201 7, ITC will file a condemnation
lawsuit. After the Assessing, Engineering, and Law Departments reviewed the
Offers, they met and discussed the effect of these proposed vegetation management
easements on the City of Livonia. Because of the City's limited easements over the
subject parcels and based upon the type of easement sought by ITC, there was
consensus that there is no need for the City to oppose the ITC's vegetation
management easements. Furthermore, in that any financial loss would be suffered
by the homeowner, not the City of Livonia, they recommend that the City Council
concur in the vegetation management easement and disclaim any right to a portion
of the Offers so that the entire amount can be provided to the homeowners.
White asked Knapp if one good faith offer is given to property owners. Knapp replied
yes. She asked Knapp if he knew how that was apportioned among the property
owners if it was by square footage. He said it is just between everybody with an
interest. He said the City has easements and it is a very minor interest in these
properties and those easements aren’t going to be affected.
White 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 8:39 p.m. on Monday, July 24, 2017.
DATED: August 2, 2017 SUSAN M. NASH
CITY CLERK