City Council Minutes

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

Larry Parks, 632 N. Center Street, questioned whether the City had a specific ordinance tied to the number of parking spaces available and the number of parking credits that may be sold. It was responded that there is no direct ordinance that dictates that there must be parking spaces available in order sell parking credits.

Consent Agenda Item 4I "Request to Close Streets / Novi Street / September 3, 2005" was amended at the request of Ms. Boshoven to change the street closure date to September 11, 2005.

Consent agenda as follows:

Approve City Council Minutes:

Regular Meeting of August 15, 2005

Approve Bills List: Checks #45065 to #45227, Checks #45228 to #45327 and Checks #45328 to #45472

Receive Board and Commission Minutes:

Arts Commission: 7/13/05

Downtown Development Authority: 7/19/05

Planning Commission: 6/21/05, 7/19/05, 8/2/05

Senior Advisory Council: 5/19/05

Receive Departmental Reports: None

Board and Commission Appointments: None

Resolution / MERS Benefit Change for Northville Command Officers Association (NCOA)

MERS Resolution / Defined Contribution Plan

Resolution / Release Deferred Obligation

Request to Close Streets / Novi Street / September 11, 2005

Parade Request / Northville Colts Youth Football League / September 25, 2005

Liquor License for Gala Reception at Art House / November 4, 2005

Bottle Drive Request / Northville High School Music Boosters / October 1, 2005

Revised Resolution Establishing Policy & Fees for the Sale of Parking Credits

Ken Naigus, Arts Commission Chairperson, gave an update on the Art House. He noted that the first year plan was to "survive." The building was completely renovated along with new landscaping. Shows and lectures were well received, rounding out a successful first year. Naigus noted that the plan for year two was to: 1) Focus on the visual arts through scheduling of visual exhibitions; 2) Include lectures that correlate to the visual exhibits; and 3) Hire a part-time gallery director to plan shows, curate, and assist in raising revenue through grant writing. Naigus believed the Art House and Arts Commission budgets could absorb the expense of hiring a part-time director.

Discussion ensued pertaining to the ongoing challenge of encouraging downtown visitors to walk the extra block to visit the Art House, the success of the Friday night Clock Concert sponsorship, and the hope that the sponsorship will continue next season.

Traditionally, the City Council designates the Halloween "Trick or Treat" hours in the City of Northville. For 2005, the hours proposed are 6:00 p.m. until 8:00 p.m. on Halloween night, October 31, 2005. In the past, City Council has also authorized the closing of certain streets within the Historic District for safety purposes on Halloween night. The following streets are proposed to be closed to vehicles on Halloween night from 5:30 p.m. to 8:30 p.m.:

In addition it was recommended that on-street parking be prohibited on North Rogers Street (Main to Potomac). To minimize the impact, a notice will be delivered to each household in the street closure area to inform residents of the planned closures and parking restrictions. Costs for Police and Department of Public Works staff time to implement the street closure plan would be absorbed into existing "Civic Events" budgets for each department.

1. Establish the Halloween "Trick or Treat" hours in the City of Northville as 6:00 p.m. until 8:00 p.m. on Halloween night, Monday, October 31, 2005, and
2. Authorize the street closures and parking restrictions as outlined above from 5:30 p.m. to 8:30 p.m. on October 31, 2005.

The City received a request to purchase thirty four (34) parking credits as a result of the demolition of the former Sheehan Building and the proposed construction of a new three-story building known as the Daskal Development. The proposed structure would be 11,856 square feet and would provide salon/retail use on the first floor with office space occupying the upper two floors.

At its regular meeting on March 15, 2005, the Planning Commission reviewed and approved the final site plan for this development conditioned upon the City Council granting approval for the purchase of 58 parking credits. Recent plan modifications resulted in a reduction of the required parking spaces from what was reviewed by the Planning Commission.

When developers within the central business district are unable to provide on-site parking, City policy allows the purchase of parking credits in accordance with Section 17.03 of the Zoning Ordinance. In accordance with the Parking Space Credit Policy, the City Council considers each purchase request on its own merit. At the time of the site plan approval, the cost of each parking credit was $3,200 for expansions and/or changes of use of less than 50% for an existing building, or $4,500 per space for new buildings and expansions in excess of 50%. A revised fee schedule was established on July 1, 2005.

Jeffrey and Tita Daskal, developers of 168-170 E. Main Street, briefly described the proposed project, noting that the salon would be a major part of the business and that approximately 800 square feet would be used for retail space to offer products related to the salon. It was also noted that the number of styling stations was reduced, which affected the number of parking spaces needed for this type of business.

Council Comments and Discussion: Questions pertained to the method and detail used to calculate the amount of parking credits, parking needs in the downtown, the likely need for a parking deck to plan for future parking needs, and the original intent of the parking credit ordinance when it was first adopted.

Comments supporting the sale of parking credits to 168-170 E. Main Street included:

• Although a history of the number parking credits purchased by the previous building (Sheehan Building) owner was unknown, it was noted that since the building demolition, the parking previously used by the Sheehan Building is now available.
• The belief that the downtown has adequate parking as evidenced by the availability of parking on non-event days, and that the additional development will not negatively impact existing businesses within the Central Business District (CBD).
• Interpretation of the ordinance which stated that the parking credit program was not designed for nor was it intended to have one space available for each parking credit sold. Rather, its purpose was to sell parking credits throughout the CBD to those developments unable to provide on-site parking in order to accumulate funds to maintain the public parking pool and develop future public parking.
• The belief that adding together the parking needs for every building within the CBD would indicate that there is no possible way for the City to provide the total number of parking spaces needed for each business.

Comments opposing the sale of parking credits to 168-170 E. Main Street included:

• Concern that the Historic District Commission did not consider the mass and size of the new building and chose to not follow established guidelines.
• The belief that approving the parking credit purchase, without knowing if a sufficient number of parking spaces exist would violate the ordinance.
• References to the 2002 Downtown Parking Survey, which found that most downtown businesses felt there was often a lack of available parking within the CBD.
• The belief that the development will adversely affect the parking needs of existing developments and that selling the parking credits will adversely affect the City’s ability to provide future parking spaces for anticipated changes of use in existing structures within the CBD.

1. Determine that the need for parking space credits at 168-170 E. Main Street meets the criteria for the sale of parking credits under established City policy.
2. Allow the sale of thirty-four (34) parking credits at a pre-July 1, 2005 price of $4,500 per parking space credit for a total of $153,000.
3. Authorize City staff to prepare and effectuate a special assessment agreement to allow the payment of parking space credits over a ten-year period with an interest rate of 6% to be applied against the unpaid balance.

The City received a request to purchase eighty-six (86) parking credits and to consider a waiver of one hundred twenty-four (124) parking credits as part of the proposed expansion to 133 W. Main Street. The proposed one-story addition and renovation project would add 43,329 square feet of office space and significantly reconfigure current office space into retail and restaurant destinations.

In exchange for the parking credit relief, the developers propose to grant the City of Northville a public access easement to allow the general public access from Main Street to Cady Street within a climate-controlled environment. The access easement would be no less than 16 feet wide and would remain open at least twelve hours per day on weekdays and Saturday and open seven hours on Sunday. The developer also proposes to provide public restroom access during the open hours. In evaluating the proposal, City staff noted that the value of the benefit received for public corridor and public restroom access could easily approach the cost equivalent of the parking credit waiver.

In addition, the developers offered to purchase the equivalent of 124 parking credits upon completion of a new parking deck over the parking lot at Wing and Cady Streets. The value of 124 credits under the city’s current parking credit policy at the expansion of less than 50% is $446,400. It was noted that this option would not be considered viable unless the City determined that this location is the appropriate place to construct a parking deck.

At its regular meeting on August 16, 2005, the Planning Commission reviewed and approved the final site plan for this development and recommended that the City Council grant parking credit relief in consideration for the public use of restrooms and public access through the interior corridor of the building.

The Planning Consultant requested verification of the square footages in order to determine the final number of parking credits needed for the project. In their letter dated September 6, 2005, the Planning Consultant stated that a review of the revised drawings from Main Street Court Yard found that the calculations used by the developer, which indicated the need to purchase eighty-six (86) parking credits, were incorrect. The Planning Consultant’s review determined that a total of 534 spaces were required. In recognition of the 500 credits already given to this site, the applicant would be required to purchase thirty four (34) parking credits.

When developers within the central business district are unable to provide on-site parking, City policy allows the purchase of parking credits in accordance with Section 17.03 of the Zoning Ordinance. In accordance with the Parking Space Credit Policy, the City Council considers each purchase request on its own merit. The cost of each parking credit has been established at a rate of $3,600 for expansions and/or changes of use of less than 50% for an existing building, or $5,000 per space for new buildings and expansion in excess of 50% for existing buildings.

Robert Buckhave and Edwin Tonch, developers of 133 W. Main Street, reviewed the proposed renovation and expansion project, the proposed public access from the Cady Street parking lot to W. Main Street, and the value of additional public restrooms in the downtown.

Council Comments and Discussion: City Council commended the developer on their proposal of a unique and adaptive reuse of an existing building.

Comments supporting the sale of parking credits to 133 W. Main Street included:

• Comments reiterating the belief that the downtown has adequate parking as evidenced by the availability of parking on non-event days, and that the additional development will not negatively impact existing businesses within the Central Business District (CBD).
• The belief that alternate methods to address parking should be considered and that a lack of development will ultimately find no need to expand parking.
• The belief that the proposed project creates a new opportunity to consider other locations within the CBD for expanded parking.
• The value and benefit of additional public restrooms and a public walkway connecting the Cady parking lot to Main Street (and a possible future parking deck) outweighed the purchase of 124 parking credits.

Comments opposing the sale of parking credits to 133 W. Main Street included:

• The belief that the City has not prepared the CBD for current and future development parking needs.
• The belief that the benefit gained with the creation of a public access walkway and additional public restrooms do not justify the waiver of 124 parking credits.
• While commending the developers for a quality project, it was voiced that supporting the project was outweighed by the belief that approval of the parking credit purchase, without knowing if a sufficient number of parking spaces exist, would violate the ordinance.

1. Determine that the need for parking space credits at 133 W. Main Street meets the criteria for the sale of parking credits under established City policy.
    
2. Waive the requirement for 124 parking credits in exchange for the described public access easement and use of restrooms for the general public during minimally defined periods. In addition, allow the sale of 34 parking credits at an established price of $3,600 per parking space credit for a total of $122,400.
    
3. Authorize City staff to:

   a. Prepare a public access easement agreement with the developers of 133 W. Main Street describing the area to be included in the easement, times of access by the general public, terms of use and other pertinent components to successfully provide climate-controlled public access between Main Street and Cady Street within the 133 W. Main Street complex.

   b. Prepare a special assessment agreement to allow the payment of parking space credits over a ten-year period with an interest rate of 6% to be applied against the unpaid balance.

Funding for joint and crack sealing of City streets is included in the City’s Capital Improvement Plan for streets, drainage, and sidewalks for the purpose of extending the life of streets. The streets for the 2005 program include Randolph Street from Eight Mile Road to Center Street, and Center Street from Baseline Road to Hines Drive.

On August 24, 2005 the City accepted bids from this program as follows:

The funding for this program comes from a dedicated millage for streets, drainage, and sidewalks approved by City voters in 1997 and is part of the FY2005/2006 budget.

Council Comments / Discussion: Discussion ensued relative to the street program and street maintenance. As the bid amounts were less than the amount budgeted, it was suggested that the DPW Director review adding additional streets to the joint and cracking sealing program and return to City Council with a proposed change order.

It is the policy of the City of Northville to recognize the unique position of a city manager when establishing overall compensation for this position. The City Manager is the only employee solely responsible to the City Council and the citizens. All other employees are responsible to the Council through the City Manager. The compensation package for the City Manager position is not intended to be a simple repetition of or a model for other employee compensation as no other employee has the same status as the manager. The City Council takes into account both local and nationwide compensation practices for city managers when establishing compensation to reflect the unique status of this position.

Council Comments and Discussion: While it was agreed that the City Manager’s performance continues to be excellent, concern was voiced regarding the proposed increase in compensation and its appropriateness considering the economic climate of the city and state. It was countered that additional factors considered when making the compensation package recommendation included non-union compensation, union contracts, comparable city manager compensation schedules, performance reviews and the city manager salary compared to other administrators within the organization. Costs were trimmed through the lower percentage increase as compared to previous years as well as the removal of purchasing additional service credits. Final comments noted that the Northville City Manager is a special person that has chosen a top-notch team of administrators, and offers unique qualities that continue to benefit the community.

1. Yearly salary of $100,400 retroactive to July 1, 2004; an increase of 3.25%.
2. Yearly salary of $103,663 retroactive to July 1, 2005; an increase of 3.25%.
3. Bonus of $750 for each of the two budget years.

Swigart spoke about Beckett and Raeder, Inc. (BRI) strategic planning study and the process to build community consensus. He stated that the method to achieve this consensus is through maximum public involvement and information. Swigart requested that a schedule of upcoming Downtown Steering Committee (DSC) meetings be made available. He also requested a report that summarized the meeting process and progress made to date.

Ayers spoke about the BRI process as well, noting that she has been studying the issue of consensus building. Ayers found that for the process to be properly done, people should have the opportunity to come to meetings for frank, open discussion that moves rapidly. She also believed that people should not come to the meetings with prearranged direction.

Mittman noted that while City Council members might choose to sit in to view the public interaction at the DSC meetings, he cautioned that Council should not be vocal during this part of the process so as to not drive the direction of the visions shared during the consensus building process.

Hartshorne noted that the cider mill is open. He also commented on the need for shrub trimming at the corner of Baseline and Center Street.

Ayers stated that she would not be at the September 19, 2005 meeting.

Johnson stated that he would not be at the October 3, 2005 meeting.

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

Respectfully submitted,

Dianne Massa
City Clerk