City Council Minutes

Mayor Johnson called the meeting to order with the Pledge of Allegiance at 7:30 p.m. in the Northville City Hall Council Chambers, 215 West Main Street, Northville, Michigan.

Present: Mayor Christopher Johnson, Mayor ProTem Carolann Ayers, Councilmembers Kevin Hartshorne, Jerome Mittman, and Thomas Swigart.

Absent: None.

A. Citizen Comments None.

Motion Ayers, seconded by Mittman to approve the agenda and consent agenda as presented. Consent agenda as follows:

City Council Minutes:

Regular Meeting of September 17, 2001

Approve Bills List: Checks #23373 - #23587

Receive Board and Commission Minutes:

Arts Commission: 9/25/01

Parks and Recreation: 8/6/01

Senior Advisory Council: 7/20/01, 8/17/01

Youth Assistance: 8/14/01

Receive Departmental Reports:

Parks and Recreation: 8/01

Youth Assistance: 8/01

Housing Commission: Charles Jerzycke (reappointment)

Downtown Development Authority: Richard Shaffner, Lynda Heaton (reappointments)

Novi-Northville CROP Walk / Walk for World Hunger

Motion carried unanimously.

The remaining component of the Mill Race Village New School Church project is the purchase and installation of the lift that will allow wheelchair users to enter the building. The estimated cost of this project is $10,000 - $12,000. It is recommended that remaining funds from completed CDBG projects be reprogrammed in order to complete the Mill Race Village Barrier Free Renovation project. As new transportation funds have recently been awarded by The Senior Alliance, it is also recommended that year 2000 funds for transportation be reprogrammed for this project.

Council Comments / Discussion: Questions were raised relative to project status, amount of remaining funds, and the cost of the wheelchair lift. It was suggested that a five-year project plan for use of future CDBG funds be presented to the Council prior to approval of 2002 funds and projects.

Motion Mittman, seconded by Hartshorne to reprogram Oakland County Community Development Block Grant (CDBG) funds from program years 1999 and 2000 in the amount of $5,647.53 to complete the Mill Race Village Barrier Free Renovation project. Motion carried unanimously.

The City received a request from area realtors to approve a temporary moratorium on the enforcement of the sign ordinance as it relates to the placement of temporary "Open House" signs. The Planning Commission considered a request at their September 28, 2001 meeting to review and possibly recommend ordinance modifications, and the Planning Commission has agreed to review the matter.

Currently, the ordinance prohibits the placement of signs within the public right-of-way without Council approval as well as the placement of real estate signs on property other than the property listed for sale or rent. The Western Wayne County and Oakland County Board of Realtors has disseminated ordinance information to area realtors, resulting in greater concern among realtors, thus the request to the Planning Commission to review the Sign Ordinance.

Council Comments / Discussion: Questions were raised relative to police enforcement procedures, consistency in enforcing all ordinances, percentage of persons who attend an "open house" based upon signage, and placement of signs on private and public property.

Jim Willis and Karen Woodruff, Century 21 Town and Country, stated that open house signs are an important element in locating open houses; other communities have similar sign ordinances and have granted the realtor some relief; and noted that enforcement of the sign ordinance has happened only in the past four months. The realtors have asked the Planning Commission to consider an ordinance change and are seeking relief from the ordinance restrictions until the possible amendment is adopted.

Comments from City Council included:

The City’s sign ordinance is a strict ordinance for all types of signs, helps the overall feel of the City, and should be enforced.

Reluctance to support the temporary moratorium until the Planning Commission review and public hearing process is completed. City Council approval of the moratorium could preclude the thought process of the Commission.

A comment that the temporary moratorium would allow the City Council to preview the result of an ordinance change and provide an opportunity to collect data prior to adopting any amendments.

Concern with the number of signs to be allowed, type of signs, and size of signs.

Request that the Planning Commission consider the possible ordinance change a high priority issue.

Beth Bialy, Tracey Ewing, and Christopher Jones, of Plante & Moran, summarized the Audited Finance Report for the Fiscal Year ended June 30, 2001, and the Management Letter. Comments included:

The Fund Balance is now at 28.5%; the suggested Fund Balance for a City of this size is at least 30% - 35%.

Revenues continue to be greater than expenditures and property taxes and state-shared revenue continue to be the City’s largest source of operating revenue.

As a result of the Year 2000 census, Michigan Department of Treasury numbers show Northville’s population slightly increasing. However, the statewide increase of 6.9% will most likely result in decreased state-shared revenue to the City. The State is projecting that 2001/2002 state-shared revenue will decrease by 2.6% over the prior year. Given the current economy, continued changes are still possible. The City is encouraged to monitor the revenue-sharing projections and consider a possible budget adjustment.

Projections for Act 51 distributions from the State are also decreasing. During fiscal year 2000/2001, the state had projected an increase of 6.6%, which was later amended to an increase of less than one percent. For 2001/2002, the State is projecting an increase of 3.3%. Major and Local Street Funds budgets should be reviewed in light of these revised estimates.

A new accounting rule issued by the Government Accounting Standards Board (GASB) states that grant revenue cannot be recognized unless it is received within 60 days of the year-end. The Parks and Recreation Commission was affected by the new rule this year, resulting in approximately $98,000, which was recorded as revenue in the current year. However, the offsetting expenditures were recognized in the current year.

The GASB new financial state-reporting model calls for implementation on July 1, 2002. As of June 30, 2002 the City will need to prepare an additional balance sheet in accordance with this new statement in order to complete the audit of the June 30, 2003 financial statements. It should be noted that internal and external costs to implement this new pronouncement could be significant.

The City receives revenue collected by the local telephone companies for "wireline" and "wireless" 911 user charges. It was noted that the "wireless" revenue collected by the City is subject to more restrictive spending requirements than "wireline" revenues.

Recent changes to the Budget Act state that the only funds required to be budgeted are the General Fund and any Special Revenue Funds. It is recommended the City consider adopting formal budgets for those funds required to have a budget by law. Informational summaries related to other funds may be included in the budget for planning purposes.

Council Comments / Discussion: Questions arose relative to state-shared revenue, paying off fire equipment general obligation bonds, funding of the MERS defined benefit pension plan, and unfunded medical benefits. Nicolette Bateson, Finance Director/Assistant City Manager, and the Finance Department, were commended for the high degree of professionalism and quality of work exhibited through the budget and audit processes.

Motion Ayers, seconded by Mittman to accept the City of Northville fiscal year 2001 financial statements and Plante & Moran’s Audit Report of those financial statements. Further, staff is directed to place a copy of the reports on file in the City Clerk’s Office. Motion carried unanimously.

Plante & Moran submitted a two-year proposal for City auditing services. The proposed fees are $28,700 for FY 2002 and $29,500 for FY 2003. The fees exclude any additional accounting services, which may be needed for implementation of Governmental Accounting Standards Board Statement 34 (GASB34).

Motion Ayers, seconded by Swigart to reappoint Plante & Moran as the City’s auditors, under the terms identified in their proposal letter, in the amount of $28,700 for the fiscal year ending June 30, 2002 and in the amount of $29,500 for the year ended June 30, 2003. Motion carried unanimously.

Racetrack funds, in excess of the cost of police department service provided at the racetrack, are recorded in the Public Improvement Fund. Over the past decade, those funds have primarily been used for capital outlay and construction related activities. Based upon the FY 2001 audited financial report, breakage revenue of $451,511 was received.

Council Comments/Discussion: Discussion centered on proposed projects, which included sidewalks, cemetery expansion, the senior center project, Mill Pond restoration (silt basin), trees, city entrance enhancements, Eight Mile and Novi Road entrance enhancements, and further development to existing parks. There was concern with using funds to improve the lighting in Pheasant Hills subdivision, and it was suggested any funds proposed for Pheasant Hills be placed in the Contingency/Grant Match designation. It was again suggested that a five-year plan be developed relative to sidewalk replacement projects.

A final comment focused on use of funds to purchase budgeted large capital items, with a possible reduction of the millage rate. It was noted that it is the City Council’s policy to not include breakage revenue in the budget process/general fund and to use breakage funds for items that could not be funded in the budget.

Motion Ayers, seconded by Swigart to designate FY 2001 racetrack breakage funds of $451,511 as follows:

In accordance with the City Charter, one member of City Council who shall not be a candidate for elective office at the election that he is appointed, shall serve on the Election Commission. A commissioner is needed for the City Regular Election to be held on November 6, 2001.

Motion Ayers, seconded by Hartshorne to appoint Councilmember Thomas Swigart to the Election Commission for the City Regular Election, November 6, 2001. Motion carried unanimously.

Ayers: Will be out of town for the November 5, 2001 City Council meeting.

Mittman: Will be out of town for the October 15, 2001 City Council meeting. Also commented on the article in the Detroit News relative to the City of Plymouth and the possibility of public restrooms in their downtown. He suggested the DDA contact Plymouth for information that could assist in providing public restrooms for our downtown. Final comments focused on the Parks and Recreation Master Plan public hearing and adoption process with respect to previous discussions relative to other parks and designating open land spaces as "parkland".

Hartshorne: Questioned problems with water pressure on Yerkes Street on September 22 (watermain break in the late evening hours), notification process to residents relative to watermain breaks, fire hydrant inventory, repair, and replacement, and problems with construction materials being discarded in Baseline Park. Council requested the DPW Director prepare a report outlining hazards and appropriate responses relative to watermain breaks.

B. Staff Communications

Nickie Bateson, Assistant City Manager/Finance Director, offered a brief update on the Website project.

There being no further business to come before Council, the meeting was adjourned.

Respectfully submitted,

Dianne Massa

City Clerk