City Council Minutes

Mayor Johnson called the meeting to order with the Pledge of Allegiance at 7:35 p.m. in the Dining/Meeting Room of Allen Terrace, 401 High Street, Northville, Michigan.

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

Absent: None

Also Present: City Manager Gary Word, Assistant City Manager/Finance Director Nicolette Bateson, Deputy City Clerk Carol Kasprowicz, DPW Director James Gallogly, Fire Chief James Allen, Police Chief James Petres, Housing Director Joanne Inglis; Housing Commissioners Butch Casterline, Charlotte Holland, Sue Ellen Hooper, Charles Jerzycke, and William Robertson; Al Diebold of Comerica Bank, and approximately 35 citizens.

Citizen Comments None

Motion Hartshorne, seconded by Mittman to approve the agenda as presented. Motion carried unanimously.

City Council had expressed an interest in the state of preparedness of the City in the event of a natural disaster or terrorist attack of some sort and has asked for the opportunity to informally question City administration regarding this matter. The Police Chief, DPW Director, and Fire Chief had prepared brief reports and were available for discussion.

Council questions and discussion: Discussion ensued over methods of communication between state and local authorities with respect to possible threats and during times of crisis, as well as methods of communication with the citizens in the event of an emergency. The City of Plymouth’s ability to use a telephone system was discussed and Staff was urged to investigate the possibility of utilizing Plymouth’s equipment as an additional means of communication. Questions were also asked regarding the availability of water in the event the Detroit water system was contaminated.

In August 2001, City staff presented a plan for improving the public area north of Eight Mile Road and east of Novi Road. While offering many amenities, the plan proved to be too costly and Council directed staff to redesign the plan and reduce the cost. The newly designed plan contains the following items:

- The construction of a sidewalk along the east side of Novi Street connecting the existing sidewalk on Novi to the pedestrian crossing at Eight Mile.

- The replacement of the existing entrance sign and the placement of a small flower garden.

- The installation of an irrigation system for the area near the new entrance sign.

- The planting of shade and flowering trees.

- The enhancement of the existing wild flower garden.

The modified project is estimated to cost approximately $30,000 and is not included in the City’s budget.

Council comments / discussion: Questions arose regarding the availability of electricity for decorative purposes. Comments were made regarding various plantings and trees appropriate for the area. It was suggested and agreed that funds for this project would be appropriately drawn from the Public Improvement Fund.

Motion Mittman, seconded by Swigart to accept the revised conceptual plan for the Eight Mile Road / Novi Road Entrance Park, with the funding to be determined. Motion carried unanimously.

Allen Terrace was built in 1978 and, in its 25-year history, has had improvements made on an as-needed basis such as a new generator, new elevator, and replacement of stoves and refrigerators. However, presently all major systems have surpassed their useful life. Anticipating the retirement of the original bonds in October 2002, the Housing Commission has gathered data and estimates with regard to capital improvements. Three major categories have surfaced:

- Heating, ventilation, and air conditioning systems at an estimated cost of $570,000,

- Apartment renovation at $532,240, and

- Common area renovation at $527,000.

Combined with contingency and debt issuance costs, the total project is estimated at $1.7M.

A 20-year financing plan was presented based on the assumption that a $1.4M general obligation bond would be issued in January 2003 at a rate of approximately 5.5%, and the rent of Allen Terrace residents would increase by 3% annually. Al Diebold, the City’s financial consultant from Comerica Bank, explained the three types of bonds available for this project. Ed Morgan, a resident of Allen Terrace, presented an argument for renovating Allen Terrace in a gradual manner, the costs of which would be absorbed by the existing annual bond payment.

Council comments / discussion:

- The importance of maintaining the basic systems of Allen Terrace was reiterated in terms of value and marketability.

- Discussion took place on the dire need to renovate the HVAC systems as the first item. Also, basic items such as bathtubs and countertops need to be replaced.

- It was suggested that a survey be taken of the residents on how quickly and what items were of a priority to be renovated.

- It was requested to have a financial study done on the timing of repairing items through the yearly use of the now-retired bond payment versus the use of a new bond program.

- The bond interest rates, at this time, are the lowest in a 30-year history.

- It was stated that this was an optimum time to begin this project before a projected inflationary bump enters the economy.

- Creating new 2-bedroom apartments is not part of the renovation plans.

- It was suggested that estimates be provided regarding the recouping of energy costs through the renovation and improvements of the various systems.

Efforts in preparing the report were acknowledged. No action was taken at this time.

A. Mayor and Council Communications None.

B. Staff Communications None.

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

Respectfully submitted,

Carol T. Kasprowicz

Deputy City Clerk