CITY OF SOUTH LYON

REGULAR CITY COUNCIL MEETING

July 26, 2004

 

 

Mayor Doyle called the meeting to order at 7:30 p.m.

Mayor Doyle led those present in the Pledge of Allegiance to the Flag

 

PRESENT:            Mayor Doyle

            Council Members: Crawford, Dryer, Schwarck and Wallace

            City Manager Cook

Attorney Lee

City Clerk/Treasurer Zemke

Department Heads: Martin & Renwick

 

APPROVAL OF MINUTES:

 

CM 7-1-04- APPROVAL OF MINUTES – JULY 12, 2004

 

     Motion by Dryer, supported by Wallace

 

     To approve the minutes of the regular meeting of July 12, 2004 as written

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

APPROVAL OF MONTHLY BILLS:  None

 

APPROVAL OF AGENDA

 

CM 7-2-04 – APPROVAL OF AGENDA

 

      Motion by Schwarck, supported by Crawford

 

         To approve the agenda as presented

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

CITIZEN’S SUGGESTIONS

 

Councilman Dryer stated that at the last meeting, we had discussed a bill from South Lyon Lumber and asked if there was an update.  City Manager Cook stated that there was some information included in the packet.  The bill was mainly for the decking for the depot as well as other items.  The computer program used to generate the checks only allows for the last item listed to be included on the warrant page.

 

Councilman Dryer stated that there is still a vacancy on the Parks and Recreation Commission.  Mayor Doyle stated that he has spoken with Maggie Kurtzweil of the Commission who indicated that things have been running smoothly, therefore there is no urgency at this point.  We want to make sure that we appoint the right person.  He further stated that if anyone is interested in serving on a board or commission, an application is available on the City’s website.

 

Councilman Wallace indicated that we received a letter from Millennium Digital, which states that all customers will be credited for two days loss of service due to the recent loss of cable service.  Further discussion was held on the damage done which led to the outage.

 

OLD BUSINESS:

 

  1. Michigan Seamless Tube – Industrial Revenue Bond – Resolution of City Council Waiving EDC Jurisdiction and Resolution approving project plan for Michigan Seamless Tube.

 

 

City Manager Cook stated that the Oakland County EDC has approved a resolution recommending the Project Plan for Michigan Seamless Tube.  The plan allows for the issuance of EDC limited obligation economic development revenue bonds for $9 million to be used for improvements to their facility.  There are two resolutions required by Council in order for them to move forward.

 

Mr. Paul Meyer of Michigan Seamless Tube, 400 McMunn Street, stated that they appreciate the consideration of the City Council.  They are moving forward with their planned improvements to the facility as well as a new building.

 

Ms. Mary Langhauser of the Oakland County EDC stated that last Tuesday, the Oakland County EDC approved their project plan, and if Council approves the resolutions tonight, the plan will be forwarded to the Planning and Building Committee of the Board of Commissioners and then to the full Board for approval.  There are two resolution required by Council.  The first is a waiver of jurisdiction, which will give them the authority to process the project through the County’s EDC because although the City’s EDC is inactive, the City does, in fact have an EDC.  The second resolution is approval of the Project Plan.  She stated that these resolutions in no way obligates either the City or the County for repayment of the bonds.

 

Attorney Lee stated that he does not have a problem with the Waiver of jurisdiction due to the fact that the City’s EDC has not been used for years, his only question is approval of the Project Plan which includes the expansion of one of their buildings yet we have no plans to indicate where on the site it will go or how it will impact the site.  He would be reluctant to approve the plan without a site such plan.

 

Ms. Langhauser stated that in no way does this userp the building and planning authority of the City.  They will have to come to you in the normal fashion.  This resolution does not approve a site plan, but rather a financial plan.  If they submit a plan that is rejected by the Planning Commission, there would be no building to secure the bonds and it would have to be repaid.  This does not obligate the City to approve a site plan. 

 

Mr. Meyer stated that they are not at a point to look at a specific site plan.  When they developed the financial plan, they were required to look out three years.

 

City Manager Cook stated that they would have to go through the site plan and building permit process.  He would ask that Council move forward with the approval as timing is an issue.

 

Oakland County Commissioner Jeff Potter stated that this plan is a financial document that allows the pass through of EDC bonding.  We have a company here that rescued a business that employs a lot of our local residents. At a risk to themselves, they are going to take out a loan and take a risk on the future of South Lyon and restore and expand this facility.  He feels that it would be the wrong signal to send to hostage this for some potential, future zoning decision.  We are not talking about Oakland County or the City being responsible for these bonds.  It could be put in the minutes that this does not bind the City to any future zoning decision.  This project is scheduled to go before the Board of Commissioners on August 5th. This is a big project as far as Oakland County is concerned, but more importantly as far as our City goes, this facility is an important part of our heritage that this company is looking to invest in.

 

Councilman Dryer stated that any hesitation here should not be construed as illwill, but rather we are being careful.  He stated that the letter from Ms. Langhauser indicates that approval in no way interferes with normal site plan approvals or other local issues.  He asked if this letter is referenced within the approval, would that be sufficient in protecting the City.  Attorney Lee stated that approval could be granted based on the representations made in the July 16th letter from the Oakland County EDC.

 

CM 7-3-04 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH LYON WAIVING JURISDICTION OF THE ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF SOUTH LYON

 

     Motion by Wallace, supported by Schwarck

 

WHEREAS, Michigan Seamless Tube LLC, a Delaware limited liability company (the “Company”), desires to acquire and renovate an existing manufacturing facility and acquire and install new machinery and equipment to be used in that facility in the City of South Lyon (the “Project”); and

 

 

WHEREAS, the Company is interested in pursuing the issuance of tax-exempt revenue bonds (“Bonds”) through the Economic Development Corporation of the County of Oakland (“Oakland County EDC”) as a means of financing its proposed Project; and

WHEREAS, the Oakland County EDC is currently active in assisting qualifying non-governmental organizations through the entire process of issuing Bonds; and

WHEREAS, Act 338 of the Michigan Public Acts of 1974, as amended (“EDC Act”), requires a waiver of jurisdiction by the governing body of any municipality in which a project to be financed under the EDC Act is located if that municipality has and economic development corporation and the financing is to be undertaken by a different economic development corporation; and

 

NOW, THEREFORE, BE IT RESOLVED, that, pursuant to the EDC Act, the City Council of the City of South Lyon hereby APPROVES the aforementioned waiver of jurisdiction with respect to the Company’s Project to allow the Oakland County EDC jurisdiction to issue Bonds therefore.

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

CM 7-4-04 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH LYON Michigan Seamless Tube, LLC Project

 

     Motion by Dryer, supported by Crawford

 

Based on the representations made by the Economic Development Corporation of Oakland County in their letter of July 16, 2004, approve the following resolution:

 

WHEREAS, there exists in the County of Oakland the need for programs to alleviate and prevent conditions of unemployment to assist and retain local industrial and commercial enterprises, and to encourage the location and expansion of such enterprises in order to strengthen and revitalize the County’s economy and to provide needed services and facilities to the County, the City of South Lyon and their residents; and

WHEREAS, the Economic Development Corporations Act, Act No. 338 of the Michigan Public Acts of 1974, as amended (the “Act”), provides a means for the encouragement and assistance of industrial and commercial enterprises in locating, purchasing, constructing, reconstructing, modernizing, improving, maintaining, repairing, furnishing, equipping and expanding in the City and the County; and

WHEREAS, The Economic Development Corporation of the County of Oakland (the “EDC”) has commenced proceedings for the assistance, pursuant to the provisions of the Act and through the issuance of its limited obligation economic development revenue bonds, of the Michigan Seamless Tub LLC Project (the “Project”) which is located in this City; and

WHEREAS, the EDC has determined that the Project is reasonable and necessary to effectuate the purposes of the Act, that the Project Plan prepared in connection with the Project satisfies all of the requirements of Section 8 of the Act regarding project plans, that the persons who will be active in the management of the Project for at least one (1) year after the projected date of the County Board of Commissioners’ approval of the Project Plan will have sufficient ability and experience to manage the Plan properly, that the proposed method of financing the Project is feasible, and the EDC has approved the Project Plan in the form attached hereto as Exhibit A; and

WHEREAS, before this Project can proceed under the Act, this City Council must approve the Project Plan; and

WHEREAS, the City Council has reviewed the subject Project Plan and concurs in the determinations of the EDC with respect thereto;

NOW, THEREFORE, BE IT HEREBY RESOLVED:

 

  1. That in accordance with the Act, this City Council hereby approves the Project Plan attached to this resolution as Exhibit A.

  2. That the Clerk of this City be and hereby is instructed to communicate this approve of the Project Plan to the Board of Directors of the EDC by delivering to said Board of Directors a certified copy of this resolution

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

 

Mr. Meyer stated that they appreciate the support they have received from the City.  He stated that they are currently running 2 ½ shifts, 5-6 days per week.  In February of this year, they started realizing positive income and are anticipating growth and progress in the future.

 

  1.  Construction License and Lease Agreement – Oakland County Department of Technology for Communications Tower

 

City Manager Cook stated that this is the license and lease agreement for the installation of the communications tower on the DPW property.  The document has been reviewed by the attorney.  We need to approve this agreement in order to move forward.  They will be selling this to us for $1, and we will then lease it back to them.

 

The question was asked if this has been before the Planning Commission.  Attorney Lee stated that this is municipally owned property and not subject to site plan approval.

 

Discussion was held on the location.  City Manager Cook stated that this will go next to the existing tower, and we are currently in discussions with Millennium Digital about moving their equipment to this tower.

 

Discussion was held on “fall area”  City Manager Cook stated that this is a collapsible tower and there is also a hill between the tower and any homes.

 

Attorney Lee stated that this will also give us another site for the location of other cellular antennaes, etc.  We have been successful in keeping these types of uses in our designated areas.

 

CM 7-5-04 – APPROVAL OF CONSTRUCTION LICENSE & LEASE AGREEMENT – OAKLAND COUNTY

 

     Motion by Crawford, supported by Wallace

 

     To approve the Construction License and Lease Agreement with Oakland County Information Technology

     for the communications tower on the DPW property

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

  1. MML Annual Convention – Selection of Delegate and Alternate

 

CM 7-6-04 – SELECTION OF DELEGATE – MML ANNUAL CONVENTION

 

     Motion by Dryer, supported by Wallace

 

     To select Council Member Schwarck to be the delegate for the MML Annual Convention

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

CM 7-7-04 – SELECTION OF ALTERNATE – MML ANNUAL CONVENTION

 

     Motion by Schwarck, supported by Wallace

 

     To select Council Member Crawford to be the alternate for the MML Annual Convention

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

  1. Block Party

a)  South Parkwood – 867 & 888 – 11:00 a.m. to 5:00 p.m. – 7/31/03

b)     Appaloosa Ct. – 8/14/04

 

Chief Collins stated that we have a request to close a very small portion of South Parkwood to include only two residences who have agreed to the street closure.

 

 

 

CM 7-8-04 – APPROVAL OF STREET CLOSURE – SOUTH PARKWOOD

 

     Motion by Schwarck, supported by Crawford

 

     To approve the street closure at 867 & 888 South Parkwood for a block party on July 31, 2004 from 11 a.m.

     until 5 p.m.

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

Mayor Doyle stated that he has been asked to coordinate the street closure on Appaloosa Court.  There are nine homes affected and as of this date, he has been successful in obtaining permission from seven of the nine homeowners.  He does anticipate receiving permission from the other two as well.

 

The question was asked if they have a proposed time frame.  Mayor Doyle stated that they are anticipating the street closure to begin at 2 p.m.

 

CM 7-9-04 – APPROVAL OF STREET CLOSURE – APPALOOSA COURT

 

     Motion by Wallace, supported by Schwarck

 

     To approve the street closure of Appaloosa Court on August 14, 2004 beginning at 2 p.m.

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

  1. Youth Assistance Contract - $13,000

 

City Manager Cook stated that this is our annual contract.  They are requesting a contribution of $13,000, which is the same as the prior year.  These funds have been budgeted within this year’s budget.

 

CM 7-10-04 – APPROVAL OF CONTRACT – SOUTH LYON AREA YOUTH ASSISTANCE

 

     Motion by Schwarck, supported by Crawford

 

     To approve the contract with the South Lyon Area Youth Assistance in the amount of $13,000

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

NEW BUSINESS:

 

  1. Resolution supporting submittal of DNR Grant – 2 soccer fields

 

Mayor Doyle stated that Kristen Cunningham is requesting approval of a grant application to the Michigan Natural Resources Trust Fund for two additional soccer fields in Volunteer Park.

 

City Manager Cook stated that the Parks and Recreation Commission has held a public hearing, and are looking for approval of the enclosed resolution.  The application is due this Thurday.

 

The question was asked how good are our odds in getting approval.  City Manager Cook stated that he is not sure at this point, however if we do not receive funding this time around, it will move into the next review.  He stated that this is a 64/36 grant.  The City would be responsible for 36% of the cost.

 

CM 7-11-04 – RESOLUTION AUTHORIZING GRANT SUBMITTAL – VOLUNTEER PARK

 

     Motion by Schwarck,  supported by Dryer

 

WHEREAS, The City of South Lyon has an approved Recreation Plan on file with the Michigan Department of Natural Resources (MDNR), and

WHEREAS, the City of South Lyon moved expeditiously in the execution and development of the grant project with the monies awarded from the MDNR in 1999.

WHEREAS, the Recreation Plan has prioritized various development and land acquisitions in order of importance, and

WHEREAS, the City has been aggressive in developing the development priorities including phases I and II at Volunteer Park

WHEREAS, the development of Phase III, or two soccer fields, at Volunteer Park is estimated in cost at $534,522.50

WHEREAS, if the City does qualify for funding under any of the available program administered by the department of Natural Resources, it does commit to developing the project as submitted and will commit local resources to the project, and

NOW, THEREFORE BE IT RESOLVED that this resolution verifies the development of the grant if awarded.

 

VOTE:                                                                         MOTION CARRIED UNANIMOUSLY

 

  1. Singh Development – Proposed improvements to the City Utility System – Water & Sanitary Sewer

 

City Manager Cook stated that included in the packet is a letter from HRC outlining improvements to the City’s infrastructure at the time utilities are constructed for the Singh Development.  We can realize considerable savings by incorporating this work.  We are asking for approval to move forward.  The total estimated cost is $251,178 and will include new pump station at Chester to accommodate an additional 95 units and provide sanitary sewer connection, abandon existing 4” water main at Lake Street and new 12” main, and provide residential water main connections at Hagadorn Court.  Our savings would be in excess of $300,000.

 

Discussion was held on the elimination of the pump station at Chester.

 

Council Member Dryer asked if anyone has asked the residents at Hagadorn Court if they want this.  It was stated that stop boxes will be installed.  It was stated that this will eliminate the need to tear up the roads, etc. in the future.

 

Superintendent Martin stated that lift stations are the way we get sewage from neighborhoods to the treatment plant.  The Chester Street station was built in 1961; approaching 50 years old.   The wet well is extremely minimal.  Most of the lift stations have wet wells the size of a residential basement; this one is 1/25 of that.  This is all stuff that will aid the community, this work will be done prior to any new houses being built thus eliminating any hardship on the existing residents, and the old lift station will be gone and replaced with a state-of-the-art lift station.  We could not even build one lift station for what they want to do everything.  The City Manager has done a wonderful job negotiating with the developer.

 

Discussion was held on the time frame for the work to be done.  City Manager Cook stated that the Singh development is moving through the site plan process and should be starting construction within the next 30 days +/-.

 

Councilman Dryer asked if we are installing water mains to Hagadorn Court, why are we not looking at sewer as well.  City Manager Cook stated that these are two different things.  Water and Sewer mains are located at least ten feet apart.  Sewer to this area would be handled as a special assessment.

 

CM 7-7-12-04 – APPROVAL OF INFRASTRUCTURE IMPROVEMENTS – SINGH DEVELOPMENT

 

     Motion by Wallace, supported by Schwarck

 

     To approve the proposal from Singh Development to incorporate off-site utility and infrastructure

     improvements in an amount not to exceed $300,000

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

  1. Ordinance Amendment to Chapter 58 – Minor in Possession – First Reading

 

Attorney Lee stated that the State has always had a Minor in Possession Ordinance, which we are obligated to follow.  The State has made changes, responding to a particular Judges interpretation, which the legislature did not feel was appropriate.  These changes are simply mirroring the changes made to State Statute.  The purpose we revise our ordinances is because, by having our own ordinance, we get to keep the fine money.  If we prosecuted under State Statue, the funds would go to the County Prosecutor’s Office. 

 

Discussion was held on alcohol consumed by minors in a place where it is legal, such as Canada.  Attorney Lee stated that a certain Judge ruled that an 18 year old who goes to Canada and comes back with alcohol in his or her system, ingested legally in Canada, is still guilty of the Minor in Possession Statute of the State of Michigan.  This is a clear violation of international law, etc.  They reversed his decision by amending the Statute to provide something enforceable and not constitutionally challengeable.  At the same time they did make some other changes and provided this affirmative defense whereby if they can prove that they ingested the alcohol in Canada then they could “beat the ticket”.  Discussion was held on the proof, such as credit card receipt, etc.  Further discussion was held on various scenarios.

 

CM 7-13-04 – FIRST READING – AMENDMENT TO CHAPTER 58 – MINOR IN POSSESSION

 

     Motion by Schwarck, supported by Crawford

 

     That this be the first reading of an amendment to Chapter 58 – Minor in Possession (see attached

     amendment as part of these minutes)

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

Councilman Wallace asked for an update on the Gateway Commons development.  City Manager Cook stated that they have modified their site plan and are back in the Planning process.  Attorney Lee stated that there is still a question as to whether they have to go back for a full review or ask City Council to amend its approval.

 

Mayor Doyle stated that the Planning Commission and Council both reviewed the first plan.  He feels that it should go back to the Planning Commission at this point for their review.  Attorney Lee stated that the City Council always has the right to send it back to the Planning Commission for review.  He stated that if it is Council’s intent to do so, he will simply inform the developer that they should begin with the Planning Commission.  It was the consensus of the Council that this should go to the Planning Commission for review prior to coming back to Council.

 

Councilman Wallace stated that he still sees many street lights throughout town that are not working.  He asked if the Police Department could conduct a survey on these lights.  Chief Collins stated that they have conducted surveys and have contacted Detroit Edison on several occasions.  He stated that some of these are wiring problems, not simply bulb issues.  They will continue to stay on top of the issue.

 

Mayor Doyle reminded everyone that the Primary Election is August 3rd and encouraged everyone to get out and vote.

 

CM 7-14-04 – ADJOURNMENT

 

     Motion by Schwarck, supported by Crawford

 

     To adjourn the meeting at 8:40 p.m.

 

 

VOTE:                                                                                     MOTION CARRIED UNANIMOUSLY

 

 

Respectfully Submitted,

 

 

 

_______________________________                                  ________________________________

John Doyle, Jr., Mayor                                                        Julie C. Zemke, City Clerk/Treasurer