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 Johnson, Mayor Pro Tem Carolann Ayers, Councilmembers Kevin Hartshorne, Jerome Mittman, and Thomas Swigart.

Absent: None.

A. Citizen Comments

Mary Ellen Patterson Hollis, 114 Walnut Street, was appreciative that the "no parking" signs were not stapled to the trees during the "Art in the Sun" event. She also urged the City Council to consider Flag Day as an additional holiday for the downtown flags.

Additional information regarding Consent Agenda Item 4I was received.

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

Approve City Council Minutes:

Regular Meeting of June 3, 2002

Approve Bills List: Checks #27270 to #27431

Downtown Development Authority: 4/30/02, 5/20/02

Historic District Commission: 3/20/02

Parks and Recreation: 5/8/02

Youth Assistance: 5/14/02

Receive Departmental Reports:

Parks and Recreation: 5/02

Youth Assistance: 5/02

Street Closure / Lexington Boulevard cul-de-sac / June 22, 2002

Street Closure / Linden Street / 4^th of July

FY 2002 Millage Rate / Street, Drainage, and Sidewalk Improvement – Resolution 02-19

Proposed Amendments to the 2001-02 Budget through May 31, 2002

and Investment Report – Resolution 02-20

In October 2001, the Pheasant Hills Homeowners Association (PHHA) requested that the City Council consider a special assessment program to finance an upgraded lighting project in the subdivision. PHHA circulated petitions and approximately 85% of the residents support the request. On June 3, 2002, the City Council received the Certified Assessment Roll prepared by the City Assessor. Following the public hearing, Council adopted two resolutions and called a public hearing for June 17, 2002 to receive public comment during the review of the proposed special assessment roll.

Motion Hartshorne, seconded by Mittman to call a public hearing for Monday, July 1, 2002, at 7:30 p.m. for "Confirmation of Special Assessment Roll," and direct staff to publish a public hearing notice on June 20, 2002. Motion carried unanimously.

The Parks and Recreation Department received a request from the American Cancer Society to use Ford Field to hold the Relay for Life Event from 8:00 a.m. on Saturday, May 17, 2003 through 12:00 noon on Sunday, May 18, 2003. Relay for Life is a fundraising event in which participants walk individually, or in teams, continuously for 24 hours. The entire event would be contained within the Ford Field Park, requiring no street closures. At peak participation times, it is estimated that 300 walkers, spectators, and volunteers would be present. The American Cancer Society has also requested permission to place "Relay" signs at Griswold and Main, Eight Mile and Griswold, and at the parking area entrance.

As with other fund-raising events, the American Cancer Society will reimburse the City for costs associated with direct services provided by the City of Northville and the Parks and Recreation Department. In addition, the American Cancer Society is required to provide a certificate of insurance, in the amount of $1M, naming the City of Northville and Northville Parks and Recreation as an additional insured.

Council Comments / Discussion: It was noted that music would be played over the loud speakers throughout the night; however, the noise ordinance will be observed. As this is a fund-raising event, Council requested that staff make an effort to keep any costs incurred by the American Cancer Society to a minimum.

Motion Swigart, seconded by Hartshorne to approve the Relay for Life Event sponsored by the American Cancer Society from 8:00 a.m. on Saturday, May 17, 2003 through 12:00 noon on Sunday, May 18, 2003, and authorize staff to work with the event sponsors to finalize event details. Further, the American Cancer Society is authorized to place three "Relay for Life" signs, at the above-mentioned locations, during the event. Motion carried unanimously.

At the regular meeting of June 3, 2002, City staff and the City’s Parking Committee recommended that City Council approve an increase in overnight parking fees from $1 per month to $5 per month. In addition, it was recommended that the City designate locations in the City parking lots where overnight parking is permitted that would least impact snow plowing operations. Following input from residents and property owners, City Council agreed to accept the recommendations, with a modification to allow $1 per month overnight parking permits in Parking Lot #4, and $5 per month overnight parking permits in other City parking lots and streets. Additional revenue generated from the permit fee adjustment would be placed in the City’s Parking Fund.

Council Comments / Discussion: It was noted that modifications to the number of designated overnight parking spaces would require a Traffic Control Order.

Motion Ayers, seconded by Mittman to adopt Resolution 02-21 increasing overnight parking fees to $5 per month in all areas of the City except the designated area on the parking deck in Parking Lot #4, said increase to cover some of the costs in creating, operating, and maintaining permitted parking on public property and rights-of-way throughout the City, effective January 1, 2003. Further, Traffic Control Order #02-14, which rescinds Traffic Control Order #02-08, is approved. Motion carried unanimously.

The City Council held a special meeting on May 13, 2002 to discuss future capital improvements at Allen Terrace. Following the discussion, City Council directed staff to survey Allen Terrace residents to discover resident opinion regarding the need and desire for improvements and to prepare additional financial analyses regarding the affordability of a bond issuance. Based on the surveys and financial analyses, the following was noted:

Survey results support many of the Housing Commission’s improvement priorities. A market study showed that Allen Terrace rents are comparable to other city-owned senior housing and are less than privately owned senior housing and Northville area apartments.

Further financial analyses indicated that the Housing Commission could finance a 20-year, $1,375,000 debt issue through general obligation bonds to fund the high priority capital improvements, with the addition of a 10% contingency. Other capital improvements could be completed over the next 20 years, with operating income generated from rent collections.

A projected 3% rent increase adjustment is less than the average annual rent increase of 3.25% based on the 20-year rental rate history at Allen Terrace.

Edwin Morgan, a resident of Allen Terrace, presented an argument for renovating Allen Terrace in a gradual manner. Comments included:

Projected rent increases will render Allen Terrace uncompetitive long before the bonds are liquidated. He doubted that annual rent increases could be limited to 3% if the capital improvement project is approved.

Financial projections would result in tight budgets and financial inflexibility for 20 years, with most completed projects being again outdated by the time of the final debt payment.

A suggestion that Allen Terrace consider options to become a "cash basis/pay-as-you go" model, while taking advantage of current debt expiration.

Council Comments / Discussion:

The importance of maintaining the basic systems of Allen Terrace was reiterated in terms of value and marketability. It has been the Housing Commission and Administration position that major capital improvement projects be withheld until the current bond was paid. It is difficult to change a 25-year plan to maintain the infrastructure of Allen Terrace.

The fact that General Obligation Bonds are voter approved and offer a lower interest rate. Bond interest rates, at this time, are the lowest in a 30-year history. This is an optimum time to begin capital improvements before a projected inflationary bump enters the economy.

Taxpayers would assume payment in the event Allen Terrace revenues cannot pay the bonds. A capital improvement plan is necessary in order to show the bond buyers that the City is committed to maintaining Allen Terrace at its current or more improved state.

A "cash basis/pay-as-you-go" approach would take at least two years to save sufficient funds to begin much-needed projects and require current residents to fund improvements benefiting future residents.

The argument that Housing Commission’s mission is to provide adequate service, plan for the future, and accomplish both without placing undue rent increases on the residents. As the building is in good condition, the option of delaying capital improvements for two years, accumulating a fund balance of approximately $500,000, to be used toward funding capital improvements rather than paying interest on bonds should be explored. A further comment suggested delaying issuing bonds for one year, accumulating a fund balance with the bond payment, and issuing bonds the following year at a lower amount.

Discussion took place on the dire need to renovate the HVAC systems. Other projects discussed included kitchen renovation, energy efficient door walls and windows, and parking lot reconstruction. It was suggested that residents be given the option to opt out of kitchen renovations, with the renovation to that particular apartment being done when it is vacated.

Housing Commissioners Bill Robertson and Charles Jerzycke noted that the capital improvement projects would maintain the building’s integrity and efficiency and that the Housing Commission was acting responsibly to address the necessity of capital improvements. A final comment noted that the current economic climate is ideal for securing bonds.

Allen Terrace Residents Mary Brennan, Alice Ritter, and daughter-in-law Joanne Ritter noted that a rent increase would burden the residents that live alone. Social Security increases are usually small and are used for rent as well as medical and prescription expenses. Council was urged to consider experimenting with a cash-paid program, consider the disruption the improvements would have on residents, and renovate apartments as they are vacated.

Bill Lokey, 943 McDonald Drive, stated that his mother-in-law is an Allen Terrace resident and favors the proposed renovations.

Motion Ayers, seconded by Swigart to authorize staff to proceed with the process to issue 20-year general obligation bonds in the amount of $1,375,000 to fund capital improvements at Allen Terrace.

The Downtown Development Authority (DDA) has been made aware of two potential developments that might occur on the parking lot on the east side of Wing Street between Main and Dunlap Streets. In order to accommodate the proposed developments, a property swap and parking structure would need to be considered. The DDA was briefed on the prospective developments and preliminary deck plans at its meeting on June 11, 2002. Following deliberations, the DDA requested a joint meeting with the City Council to discuss the proposed developments.

Motion Ayers, seconded by Mittman to call a joint meeting with the Downtown Development Authority, at 7:30 p.m. on Wednesday, June 26, 2002, in the City Hall Council Chambers. Motion carried unanimously.

The City’s collective bargaining agreements with its four unions require a 3.25% salary adjustment effective July 1, 2002. Traditionally, non-union personnel receive a similar, but not exact, salary adjustment. The City Manager requested $48,500 for salary adjustments and $10,000 for merit incentive pay. The base adjustments would be effective July 1, 2002.

Motion Ayers, seconded by Mittman to:

Authorize the City Manager to expend up to $48,500 for salary and benefit adjustments for non-union personnel, excluding the City Manager, effective July 1, 2002.

Authorize the City Manager to expend up to $10,000 for non-base merit incentive pay during FY2002-03. Motion carried unanimously.

Mittman questioned pending legislation to expand gaming at racetracks. The City Manager stated that State Representative Nancy Cassis’ office is forwarding a copy of the proposed legislation. While it is believed that the Governor is opposed to electronic gaming, he is supportive of other types of gaming. Other comments focused on the website launch date and attendance by Mittman and Swigart at an upcoming county-area realtors association meeting, with Northville’s ordinance on temporary real estate signs as a proposed discussion item.

B. Staff Communications None.

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

Respectfully submitted,

Dianne Massa

City Clerk