CITY OF SOUTH LYON
REGULAR CITY COUNCIL MEETING
OCTOBER 22, 2007
Mayor Doyle called the meeting to order at 7:32 p.m.
Mayor Doyle led those present in the Pledge of Allegiance to the Flag
PRESENT: Mayor Doyle
Council Members: Kivell, Kopkowski, Morelli, Rodman, and Wedell
Assistant Clerk/Treasurer Lynch
Attorney Lee
Department Heads: Collins and Martin
City Manager Cook
ABSENT: City Clerk/Treasurer Zemke
Department Head Renwick
APPROVAL OF MINUTES:
Council Member Maida stated on Page 6, it should say Nights to Remember, not Things to Remember.
Councilman Kivell stated on page 4, the word should be deterrent, not determent.
Motion by Morelli, supported by Maida
To approve the minutes of the regular meeting of October 8, 2007 as amended.
VOTE:
MOTION CARRIED UNANIMOUSLY
Council Member Maida stated she would like to add the Holiday Spectacular to the agenda.
Mayor Doyle stated we would be removing item 4 under New Business, therefore we can make the Holiday Spectacular item 4 under New Business.
Motion by Wedell supported by Rodman
To approve the agenda as amended.
VOTE:
MOTION CARRIED UNANIMOUSLY
CITIZENS SUGGESTIONS: None
OLD BUSINESS:
1. Community Development Block Grant Program- est. Allocation $29,349
a. Discussion of Possible Projects
b. Set Public Hearing date 11/26/07
City Manager Cook stated we have to use the money in the northwest quadrant of the City. We have used the money for sidewalks in the past, but we are able to use it for other things and he is looking for suggestions. He further stated the application is due on the 7th. City Manager Cook also stated we need to set a public hearing date. Council Member Kopkowski requested a list of options that the money may be used for.
Motion by Kivell, supported by Morelli
To set public hearing date for 11/26/07 for Community Development Block Grant
Program
VOTE:
MOTION CARRIED UNANIMOUSLY
2. MML Selection of Directors- Liability & Property Pool
Mayor Doyle stated that in the packet is the official ballot. Last year, we took no action on this as they are all incumbents and there are seven candidates for seven seats and it would have no bearing. Councilman Kivell stated that he would like to continue that and we are well served with them. The consensus of Council was to take no action.
NEW BUSINESS:
1. Collective Bargaining Agreement Police Command- Police Officers Labor Council
City Manager Cook summarized the Agreement including wages, changes in Blue Cross/Blue Shield coverage, increase in retirement from B-3 to B-4, and changes in overtime. He discussed changes in short-term disability. Councilman Kivell stated there is a potential to save between $6,000 and $12,000 and asked if that includes the $14,000 for additional overtime. City manager Cook stated the savings would be with the change in the Blue Cross and Blue Shield insurance. He stated that we are going to have the Patrol Unit contract coming forward and we have the potential to realize significant savings if we get everyone on the same page. Councilman Kivell stated that this contract will become the template for the Patrol Unit.
Council Member Maida questioned why is this being talked about now, if it was suppose to go into effect July 1st. City Manager stated that although we would be approving it now, it would be retroactive to July1st. He stated that we have been negotiating, which is typical. He stated that the Blue Cross/Blue Shield will not go into effect until we contact them and the retirement will not go into effect until July 1, 2008. Council Member Maida asked why Council did not get this sooner. Council Member Kopkowski questioned if this has to be acted on tonight because they have not had sufficient time to go over it.
Council Member Maida questioned the B3 to B4 and what that means. She stated she does not know what that means, and would like more information and more time before making a decision. Discussion was held on the difference between B3 and B4. City Manager Cook stated that right now we pay 100% of the B-3. The increase from the B-3 to B-4 with regards to the employee contribution is 1.63% above what our cost is. The employees will pay 50% of the cost of the increase. He further stated that if we want to make savings in Blue Cross/Blue Shield, we are going to have to deal with an issue they are interested in, and they are very interested in this issue. That is why it is on the table. We have an opportunity to realize savings in one area versus giving them a small increase in our retirement costs and we will realize a great deal of savings going along with the other employee groups. He stated that most of the other areas around us are already at B-4. Further discussion was held on the retirement benefit.
Council Member Kopkowski asked if the health care program is a new program. City Manager Cook stated that we currently have a PPO1 and this is a PPO2. Employees will pay for procedures at 90% with a maximum out of pocket $600. That is a $100 deductible and $500 of co-insurance. A family will pay $200 with a maximum of $1,200. We would split the cost of out-of pocket 50/50. If they do not use it, we save more and if they do, we are capped at 50% of the cost. Council Member Maida stated that these are families and she does not see any savings if we are reimbursing them. City Manager Cook stated that if we are splitting, we still are getting 50% of the savings. Councilman Kivell stated that likewise, this will be the base mark for the other employee groups.
Council Member Kopkowski asked if changing the PPO plan, you had to give them the extra retirement. She stated that this is just a “wash”. City Manager Cook stated that you can add all of the increases, but we are saving in one area. To off-set the cost, we went to the PPO2, but to get that, we had to give-up something in the retirement area. If they do not use the Blue Cross/Blue Shield, we are going to see a net gain. This is not for office visits or prescriptions, but only procedures. Council Member Kopkowski stated that there are five Council Members who have never seen one of these and it affects our budget for the next three years. City Manager Cook stated that we are ½% lower than what we budgeted for. We budgeted for 3% increase. Council Member Kopkowski stated that there is more money they are coming into so that is a “wash” too. In addition, we pay for vision and we pay extra for dental. City Manager Cook stated that we always have. Council Member Kopkowski stated that this contract covers one Lieutenant and four Sergeants. She asked if they all work every day. Chief Collins stated that the Lieutenant works 8 hours five days per week. On any given day there would be two Sergeants scheduled to work. Further discussion was held on how vacations affect overtime. Chief Collins stated that if a Sergeant takes a vacation day, we just do without a Sergeant.
Council Member Maida questioned when the last time this agreement was reviewed because she sees some areas that should be changed. As far as a holiday and employees birthday, she stated that we give them their birthday off and then pay someone time and a half to cover their shift. Chief Collins stated that we would not necessarily pay someone to cover their shift. Council Member Maida stated then we run short-handed because it is someone’s birthday. Chief Collins stated that we keep a minimum number of people. Council Member Maida stated that she has never heard of anyone getting their birthday off. City Manager Cook stated that it is standard in this area. He further stated that this is incorporated into the holidays. We do not have Columbus Day for example or Veteran’s Day. Not all communities have the same number of holidays, Oakland County has 14-15 and we have 12. Council Member Maida asked when can Council give their input. City Manager Cook asked what it is she would like to give input on. This is a negotiated contract and if you are going to look at that issue as an area to negotiate, it is not going to happen. Mayor Doyle stated that the City Manager goes through the process of negotiating, in some communities they have an attorney negotiate. We have been very fortunate over the years. Council has had all of the information for at least two weeks and these questions should have been brought before now. Councilman Kivell stated that we had the information in our last packet. It was stated that these are three year contracts, therefore they are reviewed and negotiated every three years. Further discussion was held on the agreement and the increase in wages.
City Manager Cook stated this is a competitive and comparable agreement. We do not want to be a stepping-stone for police officers to go elsewhere because we don’t pay competitively to other cities. He further stated this is not an unusual contract.
Council Member Kopkowski asked if they came to the table with anything based on today’s economy and where they were willing to take some cuts. City Manager stated that they originally came in requesting 3% increases and came down to what you see here. The question was asked if the City Manager is comfortable with this contract, and he stated he is very comfortable with it.
Councilman Rodman stated this is not an uncommon agreement. It is a give and take situation. They are paying more out-of-pocket expenses where in the past we have been paying 100%. It is the City Manager’s job to negotiate a contract to the point where the City can either break even with the existing contract or have as little increase to the community as possible. Council Member Kopkowski stated they are not giving anything, there is not a big savings, and in the end it is a wash. Councilman Kivell stated that we could have taken a hit on both ends. Council Member Kopkowski stated that we did not make as good of a savings as the percentages look. Councilman Kivell stated that we did not get a big hit either. City Manager Cook stated that you are going to have wage increases and if you think that we are not going to have wage increases, that simply is not going to happen. City Manager Cook stated that he is also looking at the other bargaining units and we have the prospect of saving a considerable amount of money just in Blue Cross/Blue Shield. To think that you are going to make a savings on an annual contract is unrealistic. Council Member Kopkowski stated that she is simply saying that it is a “wash”. City Manager Cook stated that is a good thing. He stated that he never said that this whole contract was a savings.
Councilman Wedell stated it is a fair contract for the City as well as the employees. It is a negotiation and a balance, and he is willing to support it.
Councilman Morelli questioned if there is out of pocket expenses paid by the City after retirement. City Manager Cook stated we would pay $500 until 65 years of age they would go to Medicare. Councilman Wedell stated that it is a set amount and will not escalate.
Motion by Wedell, supported by Rodman
To approve the Collective Bargaining Agreement Police Command as presented and authorize the
Mayor and City Clerk to execute the agreement
Council Member Kopkowski stated that she would like to see this tabled and asked if it would hurt us to wait one more meeting. City Manager Cook stated that we do have an election before that meeting and it is possible that we may have a slightly different structure. It could be said that anyone new was not involved in the process and it would be delayed again. At some point we have to make a decision.
VOTE:
MOTION CARRIED (2 OPPOSED)
2. Agreement for Ballot Layout and Programming Services with Oakland County
City Manager Cook stated this is a change in who would provide programming and layout services. Right now we have a private company and the County will be taking over that service. The City Clerk has asked that this be approved. This would be cheaper than paying an outside firm. Councilman Wedell stated Oakland County has sent their employees for training to set up the ballots to accommodate the voting machines rather than mailing them off to a vendor. He has seen the same interlocal agreement approved by many communities and would recommend approval.
CM 10-5-07- APPROVAL OF AGREEMENT FOR BALLOT LAYOUT AND PROGRAMMING
Motion by Rodman, supported by Kivell
To approve the Agreement with Oakland County for Ballot Layout and Programming Services and
authorize the Mayor and City Clerk to execute the agreement
VOTE:
MOTION CARRIED UNANIMOUSLY
3. Rezoning Request- RM-1 to B-3 First Reading
Attorney Lee stated this is a request to change the zoning map to take care of a situation where the frontage of a parcel is B-3 and the balance is RM-1. It has been recommended by the Planner that it all be B-3. Discussion was held regarding the location of the land and how it is shown on the map.
Councilman Kivell stated that to the rear of that parcel is owned by the church that will eventually be made into a parking lot.
Motion by Kivell, supported by Wedell
That this be the first reading of an amendment to the Zoning map from RM-1 to B-3 (see attached
map as part of these minutes)
VOTE:
MOTION CARRIED UNANIMOUSLY
4. Holiday Spectacular
Roger Colosimo of 216 Oakbrook #5 stated he would like to thank everyone for the support of the Holiday Spectacular last year. They would like to expand on what was done last year and incorporate a parade of lights similar to that of Howell. There is no money made in this event by the businesses. He further stated he approached Chief Collins regarding the cost of a parade, which was $800 for overtime. He stated last year the businesses spent approximately $3,500.00 and he would have a hard time asking them for more this year. Some discussion was held regarding the benefits of this to the City, the businesses and the area as a whole. Mr. Colosimo stated that no one makes money from this event and they are asking for assistance from the City. He stated they have applied for a parade permit with the Chief, but the downtown businesses are requesting to have the parade go through down town. The cost for the parade with the current route is $800.00 and there is a difference of approximately $800.00 for the route to go through downtown. Mr. Colosimo stated that he is asking for assistance for this year as well as future planning. He stated that this is a community event. Chief Collins stated that last year’s event the Police did attend with regular on-duty people plus himself at no cost, but it did not include a parade. Chief Collins stated normally the regular parades are budgeted for. This is something that is not budgeted for. When events come up that are not budgeted for, we charge them per event. He further stated they look at how many police officers are needed to keep the intersections closed and safe, and also how many officers are needed to do their regular duties while the parade is happening. It is based on a minimum of 3 hours at overtime rate.
Councilman Morelli stated he does not know where the line is drawn for what the businesses should pay, the DDA and the City. When you say how much everyone is contributing, how would we know how much to donate. It must be a benefit to the business to put together something like this or they would not do it. Before he can make a decision on how much the City should pay, he would like to know how much everyone else is paying. Mr. Colosimo stated it definitely benefits the businesses, but it benefits the community as well. He is hoping for something that brings people to our community and stimulates more businesses to come in because of these activities and keeps our businesses here. He stated that they are asking the businesses for $250.00. The DDA has agreed to $1,100 for carriage rides. There are a lot of people involved such as the Kiwanis doing food, the Chamber is handling the advertising, etc.
Discussion was held on the Police budget and the other events that are budgeted and not paid for. Chief Collins stated that from time to time, there are events such as dances, basketball games, etc. that are paid for by the event sponsors. For as many events as we possibly can, we do use the officers that are already on duty.
Councilman Kivell stated it sounds like a great event, but he would like a document showing what everyone is contributing and what it covers and what the event consists of. Mr. Colosimo stated that it would be similar to last year with the addition of the parade. Their only requirement for the parade is that they use a lot of lights similar to what Howell does. Council Member Kopkowski stated that it is a great community event and community events benefits us as well as the businesses. But, we need to have the information in writing so we know where it is going and who is doing what so we can come up with a fair contribution.
City Manager Cook asked what dollar amount he is looking for. Roger Colosimo stated he would like the City to cover the difference between the first parade route and the second parade route which would be $800.00, and next year he would ask that it be budgeted for. His motive is to help the downtown businesses. City Manager Cook given that they have moved it downtown, we can appropriate the money and evaluate it next year. If he is looking for $800, that is not a big issue.
Councilman Wedell stated that it is not a great deal of money, and if the Council feels that it is successful, we can instruct the City Manager to include it in next year’s budget.
Motion by Maida, supported by Wedell
To provide the difference of $800.00 for the Holiday Spectacular parade
VOTE:
MOTION CARRIED UNAINIMOUSLY
COUNCIL SUGGESTIONS:
Council Member Maida stated she is going to the SEMCOG general assembly, and Jennifer Granholm will be there and she is hoping to bring back information on the future of local government.
Council Member Kopkowski stated Joe Veltri and Steve Renwick seem to be driving old police cars and asked if there are any emblems we can put on them. City Manager Cook stated yes they are driving old police cars. This is simply transportation. Our building inspectors always have the proper identification. However, if Council wishes, we can order emblems. Council Member Kopkowski stated she would like that done, to have our building inspector show up at someones house is a car without an emblem looks tacky.
Council Member Kopkowski stated that during the meeting with Plante and Moran, they offered assistance in doing a rate study for the water bills. City Manager Cook stated is would cost between $7,000 and $8,000 for them to do a rate study. He was trying to avoid that expenditure. He stated that last year he asked for 20% and Council approved only 10%. He will be asking for 20-30% now because we are that low and are losing that much money. He stated that Plante and Moran stated we are in good financial health, but we are lacking in the water department. Two years in a row we have significant losses. Some discussion was held regarding how high a rate increase would be needed and the rates of other communities. Councilman Rodman stated that the cost of utilities has gone up 50%, which is causing the increase to be needed. City Manager Cook stated that if Council wants to do the rate analysis with Plante & Moran we can, but it will take a couple of months.
Council Member Maida asked if we over built the plant. City Manager Cook stated that water rates are a product of how much water people are using. People do a lot of landscape watering, etc. Mayor Doyle stated that we were required by the State to build this. The fact is that the costs are going up.
Superintendent Martin stated it is not a competition to see who has the lowest water rates, but we need to fund the department. He further stated that the community has to have faith in their leaders and a 30% increase sounds high, but 1.82 per 1,000 gallons cannot be found anywhere else. We did not increase for nine years. The residents can say that they would rather not have an increase in nine years rather than a 3% increase every year. Discussion was held on the mandates requiring additional costs. Superintendent stated that you can build incredible plants, but there is a cost to run them and the communities have to fund those.
Council Member Kopkowski stated a few residents have asked how we decided to have the winter parking ordinance start in November. They were hoping we could change that. City Manager Cook stated that Michigan is not typical when it comes to weather. We can have ice and snow in November, and if we do, we have no way of contacting the residents to let them know to remove their cars from the City streets between 2 a.m. and 6 a.m.
Councilman Rodman questioned the memo regarding the street sweeper. City Manager Cook stated this would be dealt with at a later date. Currently the repairs plus labor would be $15,000, and he feels it is time to replace this machine. He further stated we do have some time because we don’t use this much in the wintertime.
Councilman Morelli stated a while ago when the First Presbyterian Church was annexed into the City, they also added a big addition and they went in front of the planning commission and there was talk regarding a sidewalk being put in. At that time, they didn’t have the money to do it, but they agreed to put one in at a later time if needed. He stated he would like the City Manager to contact them regarding this issue.
Councilman Wedell stated we have had 10 months with a 10% rate increase for water, and at least a year with rising energy costs. It seems we should have a basis for what rate increase is needed, and he would like to see an exact number.
Motion by Morelli, supported by Kopkowski
To adjourn into Executive Session for the purpose of discussing the City Manager’s
Evaluation
VOTE:
MOTION CARRIED UNANIMOUSLY
Council entered Executive Session at 9:00 p.m.
CM 10-9-07 RECONVENE THE REGULAR CITY COUNCIL MEETING
Motion by Rodman, supported by Kopkowski
To reconvene the regular City Council meeting
VOTE:
MOTION CARRIED UNANIMOUSLY
Council reconvened the regular meeting at 10:20 p.m.
Motion by Kivell, supported by Wedell
To raise the City Manager’s Salary 2.5% and Blue Cross and Blue Shield insurance to
$800.00 a month at retirement.
VOTE:
MOTION CARRIED UNANIMOUSLY
CM 10-11-07 – ADJOURNMENT
Motion by Wedell, supported by Rodman
To adjourn the meeting at 10:25 p.m.
VOTE:
MOTION CARRIED UNANIMOUSLY
Respectfully submitted,
_____________________________ ________________________________
John Doyle, Jr. Lisa Lynch
Mayor Assistant Clerk/Treasurer