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