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.
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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
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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.
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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
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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:
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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.
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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
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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.
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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.
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DIRECTION: APPROVING – 1 READING REGULAR
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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
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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.
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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.
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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
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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.
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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
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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.
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Vice-President Kritzman wished his wife a Happy 16 Wedding Anniversary.
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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