Loading...
HomeMy WebLinkAboutCOUNCIL STUDY - 2009-06-01 CITY OF LIVONIA— CITY COUNCIL MINUTES OF STUDY MEETING HELD JUNE 1, 2009 Meeting was called to order at 8:00 p.m. Present: James McCann, Terry Godfroid-Marecki, John Pastor, Joe Laura, Brian Meakin, Tom Robinson, and Laura Toy. Absent: None Elected and appointed officials present: Mayor Jack Kirksey; Michael Slater, Director of Finance; Karen Kapchonick, Superintendent of Parks & Recreation; Jim Zoumbaris, City Engineer (Operations); Todd Zilincik, City Engineer; Don Knapp, City Attorney; Mark Taormina, City Planner; Kevin Roney, Assistant City Engineer; Kevin Maillard, Director of Public Works; Shadd Whitehead, Fire Chief; and Maureen Cosgrove, Assistant City Clerk. Council President Toy announced she would not be present for the June 10, 2009 meeting. She has a work commitment. Council President Toy announced she has New Data on Item 10. Meakin announced the passing of Larry Schweiger, a long time Livonia resident. His funeral was June 1, 2009. He was a veteran of World War II. Larry was very active in the community. He participated in youth sports, and volunteered for numerous activities. He will be sorely missed. He requested a moment of silence. Council President Toy offered her condolences to the family. Mayor Kirksey announced that General Motors Powertrain Plant, which has been in Livonia for almost 40 years, will close their doors in June of 2010. General Motors is the City's second largest tax payer, and it will create quite an economic development challenge and a challenge to the City's budget when they deactivate the plant a year from now. The Governor personally called the leaders of all the effective communities in the state. She has pledged the resources of the state to find a new user for that site. She finds it attractive, since it is on a railroad. She sees it as an alternative energy company that might produce large items that could better be shipped by rail then by truck. She is exploring an incentive to put a railroad citing on the rail line so it can be used by the abutting property. We also participated in a relatively small telephone conference with the White House. There were representatives from the Obama administration that offered various kinds of relief that would be forthcoming. There is interest out in the manufacturing community in looking at that property. Livonia is up to rallying and making a good use of that property in the near future. AUDIENCE COMMUNICATION: Christopher Martin, 12275 Inkster Road, Livonia, MI 48150 announced that he is a retired General Motors employee. He suggested the Mayor re-consider the 5% reduction on his salary, being the leader of the City; he thought that was not enough. 2 NEW BUSINESS: 1. BLOCK PARTY: Patricia Holcomb, re: to be held Saturday, July 4, 2009, from 10:00 a.m. to 10:00 p.m. on Cavell, between Grantland and Capitol, with no rain date requested. Patricia Holcomb,12387 Cavell, was present to request permission to have a block party. She stated that she has been having block parties for almost 45 years. Council Vice President Godfroid-Marecki offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 2. BLOCK PARTY: Stacie Pettit, re: to be held Saturday, August 29, 2009, from 11:00 a.m. to 10:00 p.m. on Louisiana, between Oregon and Kentucky, with no rain date requested. Stacie Pettit, 8937 Louisiana, was present to get request permission to have a block party. She stated that she has been having block parties for 7 years. Pastor offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 3. BLOCK PARTY: Andrea Kolhoff, Devon-Aire Civic Association, re. to be held Saturday, August 8, 2009, 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 9, 2009. Andrea Kolhoff, Devon-Aire Civic Association, 9903 Flamingo, was present to request permission to have a block party. She stated she has been having block parties for four years. McCann offered an approving resolution for the Consent agenda. DIRECTION: APPROVING CONSENT 4. BLOCK PARTY: Nicole Bush, re: to be held Saturday, July 11, 2009, from 1:00 p.m. to 10:00 p.m. on Susanna between Ross and Donald, with a rain date requested of Sunday, July 12, 2009. Nicole Bush, 14641 Susanna, was present to request permission to have a block party. This is her second year having block parties. Robinson offered an approving resolution for the Consent agenda 3 DIRECTION: APPROVING CONSENT 5. REQUEST TO WAIVE THE CITY'S NOISE ORDINANCE: Fred E. Sackllah, Festival Chair Person, The Basilica of St. Mary Antiochian Orthodox Church, re: to allow their Second Annual Sahara Fest July 16, 2009 thru July 19, 2009 from 10:00 a.m. until 10:00 p.m., except on Sunday ending at 9:00 p.m. at the proposed location, Bryant Park at 18000 Merriman Road. Fred Sackllah, Festival Chair Person, 17066 Glenmore, Northville Twp., MI, was present on behalf of St. Mary's Church, to request permission to waive the City's Noise Ordinance on behalf of their Second Annual Sahara Fest at Bryant Park. This event is scheduled from July 16, 2009 through July 19, 2009 from 10:00 a.m. until 10:00 p.m., and will include carnival rides, video games, live music, face painting, and Mediterranean cuisine. The festival will be policed by the Wayne County Sheriffs Department. The petitioner stated they have had successful years in the past, but are trying to make this event a little larger so that the people of the community can join in. This year they have decided to use a company called Wade Shows, who have a history with Livonia and are more prepared and capable, instead of the smaller ride companies they used last year. President Toy stated that they would need permission from Bryant Park, and from the Department of Education to put signs up. The petitioner stated that he has spoken to the School Board to get approval. He already has the date, and the liquor license approved (beer, wine, and spirits - margarita's and frozen daiquiri's). Meakin asked Mr. Sackllah how many rides the Wade Show would provide, and if the signs were going on his property or on school property. The petitioner stated that there would be 15 rides, (5 adult, 5 middle and 5 kiddie). He also stated there are three signs (4' x 4') held up by posts. These signs were approved by Council last year, they are just reusing them. Two of the signs will go up on their property, and one at Bryant Park. Meakin asked from the Chair to the Law Department if the Ordinance was in effect. Since petitioner is putting up 4'x4' signs on his property, which is a legal size sign on his property, would this be okay, and does he need permission from the school. Knapp stated that it should not be a problem since the signs are going up on the event site, and Mr. Sackllah has stated that he is waiting on approval from the school. 4 Meakin offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 6. REQUEST TO APPROVE PURCHASE OF ROCK SALT FOR ICE CONTROL: Public Service Division, re: utilizing consortium bid pricing for the period of August 1, 2009 through June 30, 2010. Jim Zoumbaris, City Engineer Operations, was present to request approval to purchase rock salt for ice control utilizing consortium bid pricing for the period of August 1, 2009 through June 30, 2010. The Public Service Division requested authorization to purchase 100% of the City's rock salt needs from Detroit Salt Company, 12841 Sanders Street, Detroit, MI 48217 for an estimated total amount of$229,735.00. He stated the consortium went out for bid in April of this year, and there were three bidders — Morton, North American and Detroit. Last year Detroit Salt was the lowest bidder. They went with the consortium. Their price at the time was $10.00 a ton more than they were paying with the consortium. This year the price of salt has gone up with all the bidders. The low bidder is Detroit Salt again at $41.77 per ton for Wayne County. The second low bidder is the State bid, North American Salt Company, Overland Park, KS, which is $60.77 per ton. They went out early hoping to get a good bid and to assure their 5,500 tons of salt. They used 5,500 tons last year. They have 1100 tons of salt in their bin right now, but they have raised the amount of salt because of the salt shortage last year, and to be sure they have enough. They are asking for the low bid of Detroit Salt for the contract. Meakin offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 7. REQUEST FOR RELEASE OF GENERAL IMPROVEMENT BOND: Engineering Division, re: for the completion of public improvements at Livonia Manor Site Condominiums, located on the north side of Seven Mile Road between Merriman Road and Auburndale Avenue, in the southeast '/4 of Section 3. (CR 468-06, CR 519-05 and Petition 2005-08-08-16) Todd Zilincik, City Engineer-Utilities and Engineering, was present to request approval for the release of the General Improvement Bond in the amount of $5,670.00 of which $5,000.00 was a sidewalk bond, and $670.00 was for monument and markers. The Soil Erosion Bond, in the amount of$3,000.00, was released on September 29. 2008. Council Vice President Godfroid-Marecki offered the approving resolution for the Consent Agenda. 5 DIRECTION: APPROVING CONSENT 8. AWARD OF CONTRACTS: Engineering Division, re: for on-call construction Inspection and Testing Services and Inspection Only Services for work performed on City of Livonia property or within the right-of-way for two (2) year contracts expiring on November 30, 2010 with one (1) year renewable clauses. Todd Zilincik, City Engineer-Utilities and Engineering, stated that this request is in regard to a current situation. The Engineering Division is faced with a deferred retirement recently, and an employee who is on deferred compensation due to an injury that occurred over two years ago. We currently have a Senior Inspector and two Engineering Assistant I positions out in the field inspecting. We anticipate our normal in-house people to cover the normal inspection jobs, but unfortunately we have some commercial developments that will be taking place which will require some additional inspections during our peak months of April through November. We solicited 10 bids, from various consultants and we determined it was beneficial for two (2) Consultants to handle the Inspection and Testing; Orchard, Hiltz & McCliment, Inc. (OHM) Livonia, MI 48150, at a quote of $512.00 per day, and Spalding DeDecker Associates, Inc. (SDA) Rochester Hills, MI 48307, at a quote of $480.00 per day (Construction Tech II) and $600.00 per day (Senior Construction Tech) and three (3) consultants for Inspection Only Services, Professional Engineering Associates, Inc., Troy, MI 48083 at a quote of $500.00 per day, Ken P. Buccilli, LLC, Farmington Hills, MI 48336 at a quote of $440.00 per day and Wade Trim Associates, Inc., Taylor, MI 48180 at a quote of $400.00 per day (Senior College Intern with two (2) years experience) to cover for vacations. After the contract expires, we can look at the current economic situation in 2010 and go from there. The Inspector's actual job duties include insuring that quantities are measured; traffic control is set up properly, and to insure the contractors are meeting specifications to the City of Livonia standards. They are required to carry the proper Workers Comp insurance reviewed by the Law Department. They are held liable for their testing and their results. Both firms that are doing testing have a subcontractor as part of their arrangement. Pastor asked what happens in a case where the Inspector sees something done wrong. Do they tell the contractor at that time? He said that he has been in situations where the inspector does the inspection, does the report, but doesn't tell you until four weeks after the job is completed that something is wrong. Now you have to tear everything up and fix it. Mr. Zilincik stated that the Inspector's will either stop the work order, or make a determination at that time, at their own cost, whether a letter is generated, or instructed by the Superintendent on the job site when it occurred incorrectly. 6 They will be sure it's corrected, and make sure it's in compliance with the City of Livonia standards. Wade Trim Associates, Inc. have done alot of testing and inspection throughout other communities, a lot of road projects and infrastructure, sewer, water and storm. Mr. Zilincik has worked with them previously in another community. They are new to the City of Livonia, but have been around the block. They have been in business for over forty years. Meakin stated that last month there were some issues with professional services with the Engineering Department regarding low bids, etc. He wanted to compliment Mr. Zilincik in making a very thorough RFP. The Engineers knew exactly what he was asking for, and he stated they were able to get some outstanding applicant's from this process. Meakin offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 9. SITE PLAN PETITION: Planning Commission, re: Petition 2009-04-08-05 submitted by Nudell Evangelista Architects, in connection with a proposal to construct a new clubhouse at the Whispering Willows Golf Course on property located on the east side of Newburgh Road, between Seven Mile Road and Eight Mile Road (20500 Newburgh Road), in the Northwest '/4 of Section 23. Taormina presented the plans submitted by Nudell Evangelista Architects, in connection with a proposal to demolish the existing single level clubhouse at Whispering Willows Golf Course and replace it with a new two story clubhouse, on property located on the east side of Newburgh Road, at 20500 Newburgh Road, between Seven Mile Road and Eight Mile Road. The new two level, clubhouse would be constructed in the same general location. The main level would have a gross floor area of about 5,500 square feet, which would include the pro-shop, offices, storage, restrooms, kitchen and dining room. The lower level would have an area of about 5,400 square feet, which would be used primarily for the storage and maintenance of golf carts, and include the mechanical areas as well. The total building area would be about 10,970 square feet; by comparison, the existing building is only 2,200 square feet. This is a substantially larger building than what currently exists. There could be a need for some storm water management, but previsions are being made for managing storm water. Parking would not be impacted by this proposal. There would be a covered terrace area for outside dining opportunities. The building would have multiple projections and offsets. It would contain a peaked shingled roof, aluminum sash window treatments, and column supported overhangs where the main entrances are located. The main building material is full faced brick with elements of cultured stone at certain areas around the windows and main entrances. The only access to the lower level would be on the north side of the 7 building, which is the garage door. Planning Commission reviewed this petition a couple of weeks ago and is recommending approval as submitted. Karen Kapchonik, Superintendent of Livonia, Parks and Recreation, 15100 Hubbard, Livonia, MI, announced that Barbara Debris, Project Manager, Nudell Evangelista Architects, and Tom Welch, Golf Pro, were present to answer any questions Council may have. Barbara Derbis, Project Manager, Nudell Evangelista Architects, 31690 West Twelve Mile, Farmington, MI 48334, stated that the principle behind this building was to give it a very low-key, residential look. During the planning meeting a couple of weeks ago, it was decided that we use a lighter colored shingle, because of the reflection factor. The designers were not pleased with their decision, and thought they were compromising the look of the building by going with the lighter color. The darker colored shingles would compliment the building and make it look rich. She asked for Council to give their opinion. Godfroid- Marecki stated she liked the darker look of the shingles. Pastor stated he was happy with the lighter colored roof. Ms. Derbis stated they used an earth-tone colored, full vainer brick, and they added a copula, which will add a little flavor to the building. They used tinted glass on the windows, with a little trim around the entrances. They are in compliance with the ventilation system in the attic space. The golf carts will be electric, and they are providing air exchanges in the basement. She thought the hydrogen from the rechargeable batteries should be addressed. McCann thought it was important to clarify that previously funding was issued for this, but it will be coming out of a bond and user fees from the golf course, and not out of the General Fund. He also wanted to mention the real necessity for doing this is that there are numerous defects with the existing clubhouse that would cost a tremendous fortune to bring up to today's standards. Further, the course is losing potential for golf outings, because it is not handicapped accessible, and it does not have a facility to serve the golfers. Ms. Derbis stated there is a main dining area that will hold over 90 people, plus the canopy area. There will be vinyl carpeting in the dining room, which is very strong and durable. Pastor offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 10. REQUEST FOR AMBULANCE TRANSPORT FEE ADJUSTMENTS: Council President Laura M. Toy and Councilmember James C. McCann, re: same. McCann offered an improvement to modify the ambulance rates issued by Livonia Fire and Rescue. These rates have not been changed since 1998. There 8 are a number of rates that are considerably lower, for ambulance transport and other services; below what Medicaid, and most insurance companies, will reimburse the City. We appear to be subsidizing the insurance companies and groups that pay for these services because our rates have not increased to what the other communities have done. The administration has assisted in putting together a plan whereby it should not cost the Livonia residents any additional funds. It should either be picked up by their insurance, or Medicaid, or by a plan where the Livonia residents would pay a flat rate fee of about $45.00 a year in order to be covered by any services by the Livonia Fire Department, including transport or life assistance. Mayor Kirksey stated that this was brought before the Council on February 25, 2009, with a tie vote. There were several absences from Council that evening. The main comment that was discussed at that time was the fact that we did not want to create a situation where people, in these economic times, might be faced with a bill for ambulance services, provided by the Fire Department that they could not afford if they did not have insurance. The plan this evening does clearly discuss this legitimate question. Mayor Kirksey presented a PowerPoint presentation which stated that Livonia has not revised its rates since 1998. Consumer Price Index has increased by 31% since then (U.S. Bureau of Labor Statistics). Other comparable communities set rates higher than these proposed Livonia rates. Insurance companies pay only up to the maximums set by those companies, which may not cover the cost of the ambulance transport service. Insurance providers pay the entire cost in approximately 9 out of 10 transports. The rate Blue Cross/Blue Shield will pay for these services is substantially higher than what the City currently charges. By not charging the maximum that insurance will pay, City taxpayers are subsidizing a greater portion of the cost then necessary for providing ambulance transport service. Residents without insurance can purchase, in advance, a City subscription of Emergency Medical Ambulance Transportation. This plan limits the out-of-pocket cost for the uninsured to the $45.00 yearly fee for the entire family of up to 6. Our newsletter goes to 45,000 homes in Livonia. Currently, 122 households are members. Increased publicity of the program will begin. It has run in the City newsletter, and will be added to the City website. We have a suggested ordinance that will be presented in parallel with this where the $45.00 fee could be waived by the Community Resource Department. Those who seek the waiver must show their household income is not more than 50% of Wayne County median household income. Council did not approve the increase as proposed on February 25, 2009. Not charging the insurance companies the maximums they are willing to pay is costing the City about $467.00 per day. To date, $43,866.00 in fees have not been collected from insurance companies. Part of this plan, is to find additional sources of revenue, and he believes that this is a creative way to do so. He said we have something in place; we have just not taken advantage of it. What he would like to do with Council's approval, and he strongly recommends it, is in addition to the work suggested here by the Council 9 President and Council McCann, is to issue a draft of the Ordinance that the City Attorney has. He would like to see the Ordinance move with the suggested changes and procedures, and on June 10, 2009, when this item is voted on, he asks that Council would give a 1St Reading and an Emergency Reading, so that the Ordinance and these items can be moved forward together. This Ordinance is of great importance, and could empower the Director of Finance to revise the rates on an ongoing basis, rather than looking to see at what particular point in time to bring the item back to full Council. Mayor strongly recommends the support of the Council. Fire Chief Whitehead was present to offer a background if needed. Robinson stated that he was concerned with the word subsidizing. He stated that they are subsidizing alot by not charging the maximum that most people are willing to pay. Mayor Kirksey responded by saying that it isn't a matter of trying to create a parallel to this, and subsidizing may not have been the best choice of words, but if they can charge up to the maximum, and they pay the full amount, that is one situation. What we are currently doing is paying substantially less than what the insurance company is willing to pay. In terms of the cost of the run, we do believe that subsidizing shows that tax dollars are used to meet the cost of the service that the insurance companies are willing to pay, but we are not billing them for those dollars. Robinson recognized that things are extremely difficult, but stated his fundamental concern is that if we pass along a cost from the City to the insurance company, what are the insurance companies likely to do after that? Mayor Kirksey responded by saying eventually insurance companies would attempt to recover those costs by raising rates to customers. Since just about everyone around us has raised those rates for years, we are caught in a two prong kind of thing. We are charging less than we could, and because all the communities around us are charging higher rates, if there is going to be this cause and effect with the insurance companies deciding if they will raise their rates, they will have to prove why they are doing so. It might be one of those things that would take years in the long haul. A good majority of these runs are from Medicare, and not the individual insurance companies that many of us use. This is only part of a package, and we have not addressed other efficiencies or revenue sources. But, almost every time we present a revenue source, it seems to be diminished because we are waiting for Council to exercise some type of savings otherwise. Do we want to see revenues increased? Do we want to see things better? We are in the process of doing this. It's a very involved situation. We have talked with the Council about 10 things that are before us, we have talked to the citizens in the Town Hall meeting, we have had a meeting with the department heads, and we've had meetings with the Union Chiefs to discuss it. We will soon be meeting with the Union membership to talk to them about a potential volunteering of some of their money to help with our economic situation. In a couple of months we will introduce the other part of the package. This is a key part of it and worthy of some support. The only reason we are not presenting some things, like if you take the 24/7 cars for instance, that's part of the union negotiations, especially one union, and they are on the brink of going to Public Act 12, which is an ongoing negotiation process, and to make those negotiations public prematurely, we gain nothing from that. I think we have to wait until we have the luxury of completing the task, and then reporting in its entirety. Even if you take all of the things surrounding that, this proposal before you tonight from two of your colleagues, stands on its own merits and the procedures in the draft that's going to be presented by the City Attorney, streamline the process, and help us capture the maximum number of dollars in the quickest way possible. Robinson told the Mayor that his answers were very eloquent, and he didn't disagree with everything the Mayor said. He stated that he is struggling with the fact that just because another municipality or city is raising fees at this rate, we should be outpacing them in our efforts to be efficient and save money. He closed by saying the City could not ask for a better Fire Department. Mr. Slater addressed Mr. Robinson's concern to give one example where they are doing exactly what Administration would like them to do. He stated that every day they spend less money than was put in the budget and approved last year. There are at least half a dozen positions that have not been filled that have been vacated, and at $80,000.00 a pop with wages and benefits, that's almost a half million dollars. That's more than twice what we are talking about in terms of revenue increases with this one proposal. Laura was very concerned with the fee increases, and that we are doing this at the worst possible time, and the worst day symbolically. A major corporation of this last century went into bankruptcy, and all across Michigan people are losing insurance. Fee increases are very difficult. Unless there is some sort of acknowledgment that the City is going to pick up any cost associated with any resident for ambulance services as part of the resolution, he has a hard time accepting this. He cannot support this as it is. He thinks it's the wrong time and the wrong thing to do, and would like this item placed on the Regular Meeting, at the very minimum. In response to Mr. Laura, Mr. Knapp wanted to point out that the draft of the ordinance, provided to Council, does provide the opportunity for the Department of Community Resources to waive the subscription fee. In the event that someone wasn't covered by Blue Cross or Medicaid, and they wanted to be sure they weren't hit with these big fees, they could sign up for the $45.00 subscription 11 fee. Provided they had a one person household income of less than $24,850.00, that fee could be waived. McCann stated that an ambulance run to most homes or individuals is a rare event. Medicaid Insurance is going to pay 99% of this bill. He thinks it would be irresponsible of the Council to ignore this. He thinks it's best to do what's best for the Community. President Toy asked Mr. Slater how much money the City is losing every month. Mr. Slater answered $14,000.00 - $15,000.00 a month would be paid by the insurance companies if we were charging what they are willing to pay. Ninety percent (90%) of the folks they transport have insurance. The majority, which is the elderly, have Medicare. Mayor Kirksey stated the threshold measure that the Community Resources will look at will be the formula that we are suggesting this evening. He thinks if Council would review the City's experience over the years they would see that we do take extenuating circumstances that people have into consideration. We try and work with the people that have no insurance at all, and we try and never create a hardship that would attack the basic things they need in their lives. If we were to eliminate all insurance requirements, and say that we would pick up any cost for anyone that was not insured, there would be no motive for anyone to be insured. Rather than being a revenue producing aspect, this would then be a revenue reducer. The City deals very, very fairly with people, and their personal budget, and there would be very few times when they would not waive a fee. There would be very few, if any, that would not have this waiver. Pastor had no problem charging the insurance companies, because that's what they afford people to charge them. He didn't think it would initially increase their rates. He thought we should have been doing this a lot sooner. Laura asked how many things Council will be voting on. Knapp, City Attorney, answered that Council would be asked to adopt the Draft Ordinance which would allow the Finance Director to establish the new rates after they've been published, and to empower the Department of Community Resources to waive the subscription fee. Godfrioid-Marecki thinks this is a great thing to do, and that it should have been done years ago. She thought it was fair and a win-win for everyone. McCann offered the approving resolution for the Regular Agenda. DIRECTION: APPROVING REGULAR AUDIENCE COMMUNICATION: None. 12 Laura would like to put out a resolution for the next meeting, to the Law Department, for preparation of an Ordinance that would prohibit utilizing City paid fuel for personal use. As there were no further questions or comments, Council President Toy adjourned the Study Session at 9:31 p.m. on Monday, June 1, 2009. DATED: JUNE 9, 2009 LINDA GRIMSBY, CITY CLERK