Loading...
HomeMy WebLinkAboutSTUDY - 2016-05-16 CITY OF LIVONIA – CITY COUNCIL MINUTES OF STUDY MEETING HELD MAY 16, 2016 Meeting was called to order at 8:02 p.m. by President McIntyre. Present: Brian Meakin, Brandon Kritzman, Maureen Miller Brosnan, Jim Jolly, Cathy White, Scott Bahr, and Kathleen McIntyre. Absent: None. Elected and appointed officials present: Susan Nash, City Clerk; Mark Taormina, Director of Economic Development and Planning; Todd Zilincik, City Engineer; and Don Knapp, City Attorney. President McIntyre announced the City’s Memorial Day Ceremony will be held on Saturday, May 28, 2018 at 9:00 AM at the corner of Five Mile & Farmington Roads. She invited everyone to come join their fellow neighbors and friends and pay homage to our Veterans. President McIntyre announced there is new data on Items #5 and #10. th President McIntyre wished Police Chief Caid a Happy Birthday, his birthday is May 29. President McIntyre commended the Livonia Civic Chorus on the wonderful concert they put on yesterday at Clarenceville Auditorium. AUDIENCE COMMUNICATION: None NEW BUSINESS: 1. REQUEST TO WAIVE SECTION 8.32.070 OF THE LIVONIA CODE OF ORDINANCES, AS AMENDED: Elizabeth Evans, American Cancer Society, Relay for Life, re: to allow the playing of music and announcements via speakers, at Bentley Field to raise funds for the fight against cancer which will take place from 12:00 p.m. to 12:00 a.m. on Saturday, June 11, 2016. Meakin said this is an annual event here in the City. He said the petitioner probably got tied up in traffic. She said this event used to go all night long which did upset some neighbors. He said they have cut hours back and it the event now ends at 12:00 AM which is a great compromise. Meakin offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 2 2. REQUEST TO WAIVE THE CITY’S NOISE ORDINANCE: Fr. Tony Massad, Pastor, re: in order to hold a cultural festival with music played by a DJ and live bands at Saint Rafka Maronite Catholic Church located at 32765 Lyndon, On Saturday, August 6, 2016 from 4:00 p.m. to 11:00 p.m. and Sunday, August 7, 2016 from 1:00 p.m. to 8:00 p.m. Father Ton Massad, 32765 Lyndon, presented the request to Council. He described the events of the festival and said it is an important fundraising event for their church. Brosnan offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 3. REQUEST TO WAIVE THE CITY’S NOISE ORDINANCE: Kathy Wasil, re: in order to hold a graduation luau party at her home located 10580 Laurel, on Saturday, July 16, 2016, from 3:00 p.m. until 12:00 a.m. Dave Wasil presented the request to Council. He said it is a graduation party for his daughter. Vice-President Kritzman offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 4. BLOCK PARTY: Allan Dix, re: to be held on Saturday, July 16, 2016, from 11:00 a.m. to 10:00 p.m. on Yale Street between Elmira and Leon, no rain date scheduled. Alan Dix, 35415 Allen, presented the request to Council. Brosnan offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 5. PROPOSED LOT SPLIT: Department of Assessment, re: requested by Larry Henney, for Tax Item No. 46-004-01-0029-002, located north of Seven Mile and just west of Inkster Road at 19334 Angling. Brian Duggan, 14315 Denne, presented the request to Council. He stated that new data was submitted today. President McIntyre thanked Mr. Duggan for reminding her and stated that the new data would be received and filed for the information of the Council. 3 He said Mr. Soave has a rental house on the property that is pretty run down. He said Mr. Soave was asked by the Inspection Department to tear down the home and a build a new one; however, cost wise it would not be feasible. Mr. Soave said if the lot were split and homes were built on both parcels he would be agreeable to taking on that endeavor. The proposed houses would be similar to the home he did on Stamford. The proposed houses would fit in the building envelope of the sites. Vice-President Kritzman asked about the condition of the existing house. Duggan replied it does look run down. He added that the existing house is much closer to the rear property line. The new houses would be moved up more in line with the neighboring houses and would then have a larger rear yard. Vice-President Kritzman said at first glance he wasn’t thrilled about the new parcels only being 50 feet wide; however, given the fact that they are comparable to existing properties in the neighborhood, in fact wider than some 40 feet wide parcels, he’s not having as much trouble with the proposed plan as he initially did. Meakin asked Duggan to explain the difference in putting one home on a conforming lot versus two homes on non-conforming lots. Duggan replied by first stating that these were originally platted at 40 feet wide lots. He said it really comes down to cost. He said homes are selling in the $70,000 - $90,000 range in that area, if they built just one home it would be much harder to sell a $150,000 home. Vice-President Kritzman said he can understand it might be challenging given the market value. He said he would like to visit the property and talk to the neighbors. Duggan did note that there is a sign up on the property regarding the proposed lot split. He said he was not aware of any concerns from any of the neighbors. Vice-President Kritzman offered the approving resolution for the Regular Agenda. DIRECTION: 1) RECEIVE & FILE - NEW DATA REGULAR 2) APPROVING 6. REQUEST TO APPROVE SOFTWARE MAINTENANCE AGREEMENT WITH SOLE SOURCE PROVIDER: Department of Management Information Systems, re: with ESRI Inc. for the City’s Geographic Information System (GIS) for a period of one year from funds budgeted. Dan Putman, Director of Management Information Systems, presented the request to Council. He said this is an annual maintenance agreement with ESRI. ESRI Inc. has been Livonia's GIS (Geographic Information System) software vendor since the inception of our GIS in 1996. Their maintenance quote from ESRI for 2016 is $15,300. They have been able to hold their software maintenance costs at the same rate for the past six years. This maintenance is 4 only available from ESRI, so this is a “sole-source" request. The State Contract insures that the City gets the best possible pricing for software maintenance. He gave an update on some of the upgrading they have done over the past year and how it benefits the other departments of the City that utilize the GIS software. It is the recommendation of the Management Information Systems Department that Council proceeds as follows:  Approve the purchase of software maintenance for the period from July 17, 2016 to July 16, 2017, in the amount of $15,300, from ESRI Inc., 380 New York Street, Redlands, CA 92373. No additional appropriation is necessary since sufficient funds are budgeted in the Computer Software Maintenance account. White offered the approving resolution for the Consent Agenda. Jolly inquired if there were any other free programs that function the same way. Putman said no, because some of the information is specialized and not provided to the public, like the sewer systems, taxing system, and assessing data. DIRECTION: APPROVING CONSENT 7. AWARD OF BID UTILIZING THE ROCHESTER HILLS CO-OP AWARD AGREEMENT: Public Service Division, re: to purchase one (1) 2017 Freightliner Tandem Axle Dump Truck from budgeted funds. Donald Rohraff, Director of Public Works, presented the request to Council. The 2016 approved capital outlay budget includes the purchase of one (1) 2017 Freightliner Tandem Axle Dump Truck. Arrangements were made to incorporate the purchase through the Rochester Hills Co-Op Award Agreement (RHP-RH-13- 030) program. The use of the Rochester Hills Co-Op Award Agreement allows government agencies to receive discounted pricing through their membership. This program does meet our Finance ordinance requiring competitive bidding. Through the Rochester Hills Co-Op, they can purchase this truck from Wolverine Freightliner, 107 S. Groesbeck, Mt. Clemens, Michigan 48043 at the discounted price of $100,746.00. Included in the budget is the outfitting of the truck by Truck & Trailer Specialties, Inc., 1200 Victory Drive, Howell, Michigan 48843, again through the Rochester Hills Co-Op Award Agreement. The required outfitting as quoted will be $35,563.00. This brings the total cost for the 2017 Freightliner Tandem Axle Dump Truck to $136,309.00. The purchase of this vehicle will not increase our fleet size. A similar vehicle, which has surpassed its life expectancy will be auctioned off. It is the recommendation of the Public Service Division that Council proceed as follows: 5 1. Authorize the purchase of one (1) 2017 Freightliner Tandem Axle Dump Truck from Wolverine Freightliner, 107 S. Groesbeck, Mt. Clemens, Michigan 48043 through the Rochester Hills Co-Op for the price of $100,746.00, with funds from the 2017 approved capital outlay budget. 2. Authorize the outfitting of said truck by Truck & Trailer Specialties, Inc., 1200 Victory Drive, Howell, Michigan 48843 in the amount of $35,563.00 with funds from the 2017 approved capital outlay budget. 3. Waive the formal bidding process in accordance with the provisions set forth in Section 3.04.140.D.4 of the Livonia Code of Ordinances, as amended, inasmuch as the same is based upon the low Rochester Hills Co-Op pricing; and no advantage to the City would result from competitive bidding. Rohraff said he would be happy to answer any questions Council may have. Meakin offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 8. AWARD OF BID: Public Service Division, re: for completing all of the work associated with the refurbishment of the current Salt Storage (Domar) Building from budgeted funds. Donald Rohraff, Director of Public Works, presented the request to Council. The Public Service Division has taken bids for the restoration of the Salt Dome (Domar) building. In accordance with the Finance Ordinance, specifications were prepared by the Division. Advertisements for bids were placed in the March 20, 2016 edition of the Livonia Observer, and on the Michigan Intergovernmental Trade Network (MITN) website. A mandatory pre-bid meeting to discuss the project was held. Four (4) companies submitted proposals, which were opened in the presence of the bid committee at 2:00p.m. on Tuesday, April12, 2016. The low bid was received from Sole' Building Company, 5940 Commerce Drive, Westland, Michigan 48185. It is the recommendation of the Public Service Division that the Council proceeds as follows: 1.) Award a contract of the amount not to exceed $37,600.00 to the low bidder, Sole' Building Company, 5940 Commerce Drive, Westland, Michigan 48185, which meets the specifications for completing all of the work associated with the refurbishment of the current Salt Dome (Domar) Building There is funding in the Capital Outlay/Building Improvement Account for this work. 6 2.) Authorize the Director of Public Works to approve any minor changes in the work as it becomes necessary. Rohraff said he would be happy to answer any questions Council may have. Brosnan offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 9. AWARD OF BID: Public Service Division, re: for completing all of the work associated with the replacement of the cooling tower framework at the Robert and Janet Bennett Library. Donald Rohraff, Director of Public Works, presented the request to Council. The Public Service Division has taken bids for the replacement of the cooling tower support framework for the Robert and Janet Bennett Library cooling tower. In accordance with the Finance Ordinance, specifications were prepared by the Division. Advertisements for bids were placed in the Sunday, February 14, 2016 edition of the Livonia Observer, and on the Michigan Intergovernmental Trade Network (MITN) website. A mandatory pre-bid meeting to discuss the project was held. One company submitted a proposal, which was opened in the presence of the bid committee at 2:00p.m. on Tuesday, February 23, 2016. During the pre-bid meeting for the corresponding roofing project at the library, it was discovered that the cooling tower platform framework had to be raised as the old framework was going to sit too low and obstruct the roof project. The low bid for the cooling tower framework was received from Temperature Services, Inc., 37679 Schoolcraft Rd., Livonia, ML 48150. It is the recommendation of the Public Service Division that the Council proceeds as follows: 1.) Award a contract of the amount not to exceed $39,248.00 to the low bidder, Temperature Services, Inc., 37679 Schoolcraft Rd., Livonia, MI. 48150, which meets the specifications for completing all of the work associated with the replacement of the cooling tower framework at the Robert and Janet Bennett Library. 2.) Authorize an expenditure of $39,248.00 from already budgeted funds in the Capital Improvement account for this work. 3.) Authorize the Director of Public Works to approve any minor changes in the work as it becomes necessary. Brosnan offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 7 10. REQUEST TO ADJUST WATER AND SEWER CONSUMPTION RATES, INDUSTRIAL SURCHARGE RATE AND INDUSTRIAL WASTE CONTROL CHARGE: Public Service Division, re: to become effective with the first billing on or after July 1, 2016. Donald Rohraff, Director of Public Works, presented the request to Council. Livonia's Department of Public Services and Finance Department have worked together on the water and sewer rates proposed for implementation on July 1, 2016. In calculating the new rates, a review was made to determine how the 2015/16 rates performed in conjunction with the budget, and an analysis of the effects of the proposed new rates on our small, medium and large water users was done. Incorporating the increased wholesale charges from Wayne County and the Great Lakes Water Authority, the recommended new rates will impact customers in the following manner: 1) The proposed water and sewer rate increase is 8.87% this year for the average residential user. Average use is based on consumption of 20 units (2,000 cubic feet) of per quarter. 2) The rate increase is mainly due to a pass-through of the increased charges from our wholesale suppliers. a. GLWA increased the annual fixed fees charged to the City of Livonia from $7,449,600 to $7,964,400. b. Wayne County sewage charges, which are a flat fee, are unknown at this time. A 4% estimated increase in sewerage rates has been used to calculate new rates. c. Livonia's local costs have also increased. Sewage cost has increased due to the cost of improvements to the sewer system which have been ordered pursuant to the May, 2011 rain event. Water cost has been increased pursuant to repairs to a GLWA meter. The repairs have led to a more accurate, higher measure of units sold to the City of Livonia, thereby increasing cost. 3) The fixed rate for the 37,198 users with small meters (5/8 to 1 inch) has been increased to $69.75, up from last year's rate of $68.85. Larger meters, 1.5 inches to 10 inches have been increased by 2%. 4) The increase in the fixed rate on all meters has been necessitated by the fact that the annual fixed fees charged by Wayne County and GLWA are so significant. The City continues to express its disapproval to GLWA for implementing the large increase to fixed fees. The City also continues to express its dissatisfaction to Wayne County that their 16/17 rates have not been conveyed to the City in a timely manner. 8 5) The increase in per-unit rates is the result of recovering the balance of fixed charges from GLWA and Wayne County through per unit costs, the impact of the settlement of the May 2011 rain event lawsuit, and increased water loss, debt service and capital costs. 6) City of Livonia users still pay much less for water than users in most surrounding communities pay for an equal amount of water. 7) The new rates will be in effect from July 1, 2016, through June 30, 2017. Coline Coleman, Chief Accountant, said the proposed rates have been calculated, incorporating a small fixed rate increase of 90 cents per quarter for small meters, those range from 5/8 inch to 1 inch. The proposed increase for meters larger than 1 inch is 2%. These increases in fixed costs have been necessitated by the increase in fixed amounts charged by GWLA and Wayne County. Coleman said before the City sells any water at all it is committed to paying $28,000,000 from the period July 1, 2016 through June 30, 2017. Some of the fixed costs have been passed on by means of the City’s fixed rate but only $10,000,000 of that amount. The balance of the fees has been imputed into the per unit costs of both water and sewer. The City’s average user still pays less than the average user in most of the surrounding communities. A comparison sheet has been provided to Council for its review. These rates are calculated to be revenue neutral and cash neutral. They’ve been calculated to provide sufficient cash flow for administrative and operational needs, bonded debt provisions and required capital outlay. If no rate increase were made to the City’s water and sewer rates the projected loss would be about $3,900,000. Meakin asked Coleman for an update since the City’s participation in the GLWA. Coleman said changes are occurring. She added that Rohraff is a member of the TAG Committee working very closely with GLWA and deferred that question to him. Rohraff said since January they have been working closely with GLWA. A lot of the differences they are seeing is they have numerous Committees he and Coline, as well as other staff members, belong to and some of their ideas have been implemented. The interaction back and forth is very nice he noted. Meakin said he was happy to hear that. Meakin offered the approving resolution for first reading for the Regular Agenda. Brosnan said she was happy that the City is one the least expensive of the cities on the comparison list. She said the comments Rohraff made about the ideas from City staff being implemented are very encouraging. st DIRECTION: APPROVING – 1 READING REGULAR 9 11. SITE PLAN PETITION: Planning Commission, re: Petition 2016-03-08-03 submitted by The Project Collaborative, on behalf of The Kroger Company of Michigan, in connection with a proposal to demolish the existing gas station and construct a new fueling facility located on the northeast corner of Five Mile Road and Merriman Road (31338 Five Mile Road), in the Southwest 1/4 of Section 14. Mark Taormina, Director of Planning and Economic Development, presented the request to Council. This is a request to demolish the existing gas station at the northeast corner of Five Mile and Merriman and construct a new Kroger fueling facility. The property measures roughly 125 feet along Five Mile Road by 125 feet along Merriman Road. The zoning of the property is C-2, General Business. Immediately adjacent to this property to the north and the east is the MerriFive shopping center, including Tim Hortons restaurant which is adjacent to this site to the east. West across Merriman Road is a retail center zoned C-2, a church zoned R-U-F, and south across Five Mile Road are commercial properties including a gas station, all zoned C-2. The existing gas station on the property measures about 1,391 square feet. It's located roughly 69 feet from the property line adjacent to Five Mile and 53 feet from Merriman Road. The existing gas pumps are covered by an overhead canopy that is located between the building and Five Mile Road. The rendered site plan shows what the property would look like upon completion of the proposed improvements. The new Kroger fueling facility would support the existing grocery store that is located across Five Mile Road, and both the building as well as the overhead canopy would be removed and replaced with new structures. The new facility would have six pumps with the capacity to accommodate a total of 12 vehicles. The facility would be open to the general public; however, regular Kroger customers earn points and have the ability to purchase gas at any of the Kroger fueling centers at a discounted price. Instead of a typical convenience store, Kroger provides a much smaller "transaction kiosk." This is a smaller building. It measures roughly 265 square feet, so it's only 30 feet in length by 9 feet in depth. It contains three rooms: the sales area, a storage and mechanical room, as well as a restroom that would have outside access only. Customers can buy a limited selection of merchandise through the window or there are some display racks outside the building, but those would be limited to oil or oil based products such as additives or windshield solvent. Our ordinance prohibits any exterior merchandise sales other than these limited products. The building would be constructed out of brick and its overall height would be 11 feet, plus there would be about a two or three-foot screen mounted on top of that to conceal the rooftop HVAC. Required setback for gas stations is 60 feet from any property line or right-of-way. This proposed kiosk would be about 110 feet from Five Mile, but only 32 feet from Merriman and therefore would require a variance from the Zoning Board of Appeals. The property abuts commercial along its north and east property lines. The Zoning Ordinance does not require any building setbacks from these lot lines provided that the building has the proper fire rating. The fuel canopy would measure roughly 53 feet by 102 feet. It would be 18 feet in height and would have 10 setbacks of 34 feet from Five Mile Road and 12 feet from Merriman Road. The minimum requirement is 10 feet, so the proposed structure would be in full compliance with the ordinance. It would have brick based metal piers that would support the structure. There is no off-street parking shown on site. Normally, parking is computed based on a ratio of one space for every 150 square feet of net retail space. The petitioner has previously stated Kroger intends to secure a parking agreement with the adjacent Merri-Five shopping complex. Maybe he has new information regarding those efforts this evening. However, it is staff's opinion that at least one, maybe two, parking spaces should be provided adjacent to the kiosk including at least one barrier-free space for patrons or employees. There is a trash dumpster enclosure located in the northeast corner of the site. The gates face north towards the shopping complex so this would rely on a cross access agreement with Merri-Five plaza. The site would have two driveways from the main roads, one on Five Mile and one on Merriman Road. The existing driveway on Merriman closest to Five Mile would be eliminated and replaced with landscaping. There would be a secondary access via the connecting driveway to the north with the shopping center. In terms of landscaping, the areas of greenspace constitute roughly 10 percent of the total site area. It is below our 15 percent rule, but it is more than what currently exists. Only about 6 percent of the site presently contains landscaping. In terms of signage, gas stations are permitted one ground sign, a maximum of 40 square feet. That sign must be no greater than 12 feet in height and set back at least 5 feet from the rights-of-way. The ordinance also allows a total of 100 square feet of signage that can either be installed on the canopy itself or the wall of the building. In terms of wall signage, the plan shows on 4 sides of the canopy, each of those signs would be about 15 square feet for a total of 60 square feet and another building sign at 7 square feet. So overall, the wall sign area would include a total of about 67 square feet. That is below the 100 square foot threshold. In terms of a monument sign, they're showing a 30 square foot sign that would be six feet in height and would be setback 5 feet from the right-of-way. The Planning Commission is recommending approval. Taormina was ready to answer any questions Council may have. Meakin asked Taormina what page the monument sign was on. He said he wasn’t sure if it was shown in the plans provided to Council. He displayed the plan overhead. Meakin said it is an attractive looking plan and is happy that Kroger is continuing to invest here in Livonia. Brosnan said there were two primary areas of concern for her. The first being the landscaping. She asked him if he had a landscape plan that matches the overhead drawing he displayed that depicted 5 trees on the site. Taormina said the plan he has only shows 1 tree so the petitioner would need to be addressed. Brosnan asked Taormina if the plan included the lower landscaping materials like the bushes and shrubbery. Taormina replied yes. 11 Brosnan said her second concern was the traffic congestion. She recalled a couple of years ago when the new Tim Horton’s adjacent to this location came before Council, traffic was an issue of much discussion. She asked Taormina if there was any discussion on the issue. She noted that the cross access was of great concern to her as well.as movability on the site. Taormina replied yes there was discussion and a recommendation from the Traffic Commission was given to the Planning Commission and it has been addressed in the stipulations of the resolution. Brosnan said she was appreciative of that fact. Meakin was concerned about the trees to be planted and requested that a species that isn’t tall growing be utilized so that it doesn’t grow into the new power lines. Jolly asked Taormina if Kroger gas stations were franchised or corporate owned. Taormina said he believes corporate owned but deferred that question to the representative for the petitioner. Steven Webster, representative for the Kroger Company of Michigan, 37704 Hills Tech Drive, Farmington Hills, Michigan 48331, was present. He replied to the question and answered that the Kroger gas stations are owned by Kroger. He said they would be happy to comply with the placement of the additional trees and would comply with whatever type of species is deemed appropriate. He said they are working on the cross access agreement. Brosnan said she appreciates their proposed plan and their investment in Livonia. She inquired when they plan to start the project. Ryan Johnson, 31704 Haldane Livonia, Michigan, employee of the Kroger Real Estate Division, said they are tracking to have the project completed and the gas station open by the end of the year. Brosnan offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 12. REQUEST FOR ONE-YEAR EXTENSION OF SITE PLAN APPROVAL: Planning Commission, re: Petition 2014-02-08-02 submitted by Victor East, L.L.C., previously approved by the City Council on May 6, 2015, in connection with a proposal to construct a one-story office-research building (Victor East) on property located on the north side of Seven Mile Road between Newburgh Road and Victor Parkway (37640 Seven Mile Road) in the Southeast ¼ of Section 6. (CR 125-15 and CR 104-14) Mark Taormina, Director of Planning Development, presented the request to Council. This is the second request to extend the site plan for the development of property that is located at the northeast corner of Seven Mile and Victor Parkway. 12 This petition dates back to 2014 when it was originally approved by the City Council under Council Resolution #104-14. It involves the development of 6.4 acres of vacant property. This has quite a long history in terms of its development. It was originally approved as an Oakwood Health Systems outpatient facility pursuant to a Consent Agreement between the City and the developer. It then was modified to include an office building that was never developed. Then there was a third amendment to the Consent Judgment allowing for the development of the site as a one story building about 54,000 square feet in size for general office, engineering, research and development and design as well as laboratory testing and storage. It's really a high tech or flex building that was desired to be built on this property. It's still being marketed as such. There was a lengthy review of the site plan a couple of years ago. It's kind of U-shaped building. Again, one story in height, about 54,000 square feet. It had all the required parking, storm water management access, landscaping, and retention of the drainage creek that runs along the north side of the property. It is still hoped that the site will be developed in this manner. The representative for the petitioner is here tonight to answer any questions Council may have. Meakin asked Taormina why Council should grant an extension versus a denying resolution. Meakin said the previous extensions didn’t help. He said there is plenty of construction going on in Livonia, it seems the proposed plan just isn’t working. He said maybe it would be better to revisit the proposed use of the property and figure out what else may work. Taormina said the proposed structure does meet the ordinance requirements and is tied to a consent judgment. He said it wouldn’t serve any real purpose to deny the request just to look at other proposals of the property. He said they can entertain inquiries of other proposals now. He said it was a complicated consent judgment that involved several parcels and it has been amended over time to reflect approved changes for development; Vice-President Kritzman asked the petitioner for an update on their marketing efforts and whether or not there is anyone interested in the property. Josh Suardini, Etkin, 29100 Northwestern Highway, Suite 200, Southfield, Michigan 48034, was present on behalf of the petitioner. He said as the economy changed they immediately put it on the market. He said they felt and still feel this product, a single story flex building in this area, was and is still the correct product. He said they have looked at other uses and designs but they still come back to this plan. They are still highly committed and continue to market the site. Brosnan asked the petitioner if he was limited by the site plan for what has already been preapproved. Suardini said he didn’t think they were limited. Meakin disagreed and said, in his opinion, the proposed site plan does limit their marketing audience. He said this may not be the best approach to marketing the 13 site. However, he does wish the best of success to them and he will support the request. Brosnan offered the approving resolution for the Consent Agenda. DIRECTION: APPROVING CONSENT 13. REQUEST FOR GAS FRANCHISE RENEWAL: Department of Law and Greg Meyer, Consumers Energy, re: granting the right, power and authority to lay, maintain and operate gas mains, pipes and services on, along, across and under the highways, streets, alleys, bridges, waterways, and other public places, and to do a local gas business in the City of Livonia, Wayne County, Michigan, for a period of thirty years. Don Knapp, City Attorney, presented the request to Council. He said at the January 20, 2016 Study Meeting, the Department of Law was requested to review a proposed natural gas franchise ordinance. The Law Department reviewed the Ordinance and made revisions so as to comport with the existing franchise ordinance. Submitted for consideration by the Council is the proposed ordinance. Vice-President Kritzman offered the approving resolution for first reading of the ordinance for the Regular Agenda. Brosnan asked Knapp what is being changed. Knapp responded it is updated language. Brosnan recalled a former project Consumers Energy did along Schoolcraft Road by Madonna University. She said it took an extremely long time for the right of way to be repaired and restored to its previous condition. She had hoped that the new language would have set some guidelines addressing the length of time to restore the right of way its prior condition. st DIRECTION: APPROVING – 1 READING REGULAR 14. REQUEST TO APPROVE EXTENSION OF THE BOTSFORD PARK CELLULAR TOWER LEASE: Department of Law, re: with American Tower for a five (5) year period, with three additional five (5) year renewal periods with an annual rent of $24,000.00 effective on July 1, 2016, thereafter starting January 1, 2017 increased by four percent (4%) every year and a $50,000.00 signing bonus. Don Knapp, City Attorney, presented the request to Council. He said although American Tower Corporation has a secure tenancy of the cell tower in Botsford Park through the end of 2019 (held by Detroit SMSA Tower Holdings, LLC), American Tower has periodically expressed an interest in extending its lease beyond that date. In response to American Tower's most recent overtures, the City's Finance Director made an aggressive offer of terms for a multi-year extension- including $50,000 more rent than the 2014 lease at Rotary Park, even 14 though this is a less desirable tower location – and American Tower accepted it. A copy of the proposed amendment to lease embodying these terms, and potentially extending to 2039, has been provided to Council for its review. The annual rent Livonia receives under the current lease is $12,000. Under the proposed lease, the annual rent (prorated in 2016) rises to $24,000 on July 1. Thereafter, starting January 1, 2017, the rent increases by four percent (4%) every year. Under the current lease, the rent would not escalate at all. Finally, the proposed lease comes with a $50,000 signing bonus, payable 30 days after signature. In addition, the current lease has no provision for collocation. It is not clear whether there will ever be collocators at this site, but if there are, the City will get 35% of collocation revenues. Plus, the new lease is better calculated to avoid liability on the City's part. In short, by this lease amendment, the City is seizing the opportunity to cast aside a disadvantageous old deal in favor of a highly competitive new format. They are recommending Council approval. White addressed Council with regard to the collocation aspect. She was happy to see that collocators will be charged 35%. She said it is preferred that there be less towers and more collocators. She wondered how the City is informed when a company collocates on the tower. Knapp said they could include language in the contract requiring notifcation when a company collocates to the tower. Brosnan asked Knapp if language can be added to mandate collocation not just encouraged in leases. Knapp said it may not be feasible to require collocation, there are probably multiple factors examined by these companies when considering collocation. She noted that the length of the lease was extremely long and wondered was that the requested by American Tower. Knapp said he would check with Mr. Fisher and report back to Council as to who requested the length of the lease. Knapp added that the terms of the lease would most likely be less favorable with a shorter length of term for the lease. Brosnan offered the approving resolution for the Regular Agenda. DIRECTION: APPROVING REGULAR AUDIENCE COMMUNICATION: None. th Vice-President Kritzman wished his wife a Happy 16 Wedding Anniversary. th Bahr wished his wife a Happy 16 Wedding Anniversary. As there were no further questions or comments, President McIntyre adjourned the Study Session at 9:35 p.m. on Monday, May 16, 2016. DATED: May 26, 2016 SUSAN M. NASH CITY CLERK