CITY OF SOUTH LYON

CITY OF SOUTH LYON

REGULAR CITY COUNCIL MEETING

January 22, 2007

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: Dryer, Kivell, Maida, Morelli, and Wedell

City Manager Cook

Attorney Lee

City Clerk/Treasurer Zemke

Department Heads: Collins, Martin & Renwick

ABSENT: Council Member Kopkowski

APPROVAL OF AGENDA

CM 1-1-07 – APPROVAL OF AGENDA

Motion by Wedell, supported by Maida

To approve the agenda as presented

VOTE: MOTION CARRIED UNANIMOUSLY

APPROVAL OF MINUTES:

Council Member Maida stated that on page 5 relating to the Tri-Party project, each Council Member made comments, yet her comments as well as Councilman Morelli’s comments were not included. Mayor Doyle requested that the City Clerk review the tape further and add those comments. Attorney Lee stated that the minutes could still be approved as it does not affect the action taken by Council and additional comments can be added.

CM 1-2-07- APPROVAL OF MINUTES – REGULAR MEETING OF JANUARY 8, 2007

Motion by Morelli, supported by Dryer

To approve the minutes of the regular meeting of January 8, 2007 with additional Council comments to

be added to page 5

VOTE: MOTION CARRIED UNANIMOUSLY

APPROVAL OF MONTHLY BILLS: None

CITIZENS SUGGESTIONS:

Ms. Joan Morgan of 22280 Quail Run requested an update of the dollar store that was to go in at Brookdale Shopping Center. She stated that the sign is now gone, but she has heard that one is coming into the City. Council Member Maida stated that from reading in the paper, it appeared that there is one going in by Big Boy. However, she too saw the sign at Brookdale.

Ms. Jane Gasiorowski of 9828 Tuscany Valley Way stated that she is representing the Crop Walk and is currently a Case Manager with Active Faith. The Crop Walk is an organization that helps stop hunger worldwide. They will be are looking for permission to have a sign across Pontiac Trail to advertise the Crop Walk which is May 20^th. Mayor Doyle asked where along Pontiac Trail. Ms. Gasiorowski stated they would like it in the area of the Newspaper building. Councilman Kivell stated that those are privately owned buildings and they would have to coordinate with those owners.

City Manager Cook stated that this would require a permit from the Oakland County Road Commission, and they do have specific requirements as far as height and type of banner.

Mayor Doyle stated that a similar request was made by the Pumpkinfest a couple of years ago, and the County did approve it. It was never followed through with, but they did have permission.

The consensus of Council was they did not have a problem with it as long as it did not interfere with people’s ability to see the traffic light or interfere with truck traffic.

Discussion was held on connecting to the buildings and providing some type of protection to the property owners. It was stated that consideration will have to be given to the sign twisting, etc. to avoid damage to the facade of the building. It was suggested that they speak to the Village of Milford who does do this on a regular basis.

Discussion was held on timely removal of the banner after the event.

OLD BUSINESS:

1. Engineering Service Request for Proposals (RFP) – Approval of Engineering Services.

Mayor Doyle stated that as requested, Council received the proposal from AEW. Councilman Kivell stated that it was difficult to determine the whole multiplier issue. He stated that this was never supposed to be a vehicle to wedge us away from HRC, but rather a matter of validating our pricing schedule. HRC did provide us with their annual fees, which was approximately $609,500 this past year. If they are in the middle and there is a swing of 5% from the high to the low we could realize 1-2%, which would be a savings of $18,000 a year. This is not enough, in his opinion, to go with somebody else.

Councilman Dryer stated that the risk of having a new company in here to take over is high and the savings could be eaten up right away. Councilman Kivell stated that he is not as concerned with that as the fact that we have people that everyone is confident in right now and their pricing is not so far out of line that it would justify making a change.

Councilman Wedell stated that he did go through the AEW and compared it to the other proposals, and his recommendation would be to stay with HRC.

Council Member Maida stated that there was a lot of information, and she does feel comfortable with staying with HRC. Trying to venture out with another firm could be risky.

Councilman Morelli stated that he appreciates the help at the last meeting as well as the information in the packet regarding the amount paid to HRC over the last year. He stated that he did the math as far as savings that could be achieved going with another company, and he came up with less than 3%. It is not worth the little amount to make a change. He would like to put something in place to ensure that this process is done every few years. Councilman Kivell stated that this would be a 3-year contract.

Mayor Doyle stated that he received an email from a citizen of South Lyon and volunteer with the Wellhead Protection Program and Storm Water Management Program. She is very much in support of a continued relationship with HRC.

CM 1-3-07 – ACCEPTACE OF PROPOSAL AND CONTRACT WITH HRC

Motion by Wedell, supported by Kivell

To accept the bid proposal from Hubbell, Roth and Clark and enter into a 3-year contract for

engineering services

Councilman Morelli questioned HRC if their prices changed from what we were being charged. Keith McCormack of HRC stated that the labor rates are adjusted every year so these have been adjusted for 2007.

VOTE: MOTION CARRIED UNANIMOUSLY

Mayor Doyle thanked HRC for the work put into the proposals as well as the City Manager and Department Heads. Councilman Wedell also thanked all of the bidders who spent their time and expense preparing their proposals.

2. South Lyon Area Recreation Council – Articles of Incorporation for South Lyon Area Recreation Authority – Approval

Mr. Steve Lackey of the South Lyon Area Recreation Council stated that he is before Council to request approval of the Articles of Incorporation. The Articles were recently approved by both Green Oak and Lyon Townships. Upon approval of the City, the South Lyon Area Recreation Council would be reformed under these Articles and become the South Lyon Area Recreation Authority.

Mayor Doyle asked for an overview of the Articles. Mr. Lackey stated that the Articles would allow them to reincorporate under another statute. Currently they are formed under Public Act 7, which is the Intergovernmental Local Agreement Act. The new Act is Public Act 321, which is the Recreation Authorities Act. When they became a separate entity from the Schools, it was a regional endeavor between the City of South Lyon, Green Oak Township and Lyon Township. In their original Articles, it makes reference to legislation that was being sought that would create this Authority. The intent at that time by all three parties was that if that Act would become law, that they would then reorganize. The primary difference is that it allows for a different funding mechanism in the form a dedicated millage. It would be possible for the Authority to seek a millage as a region for recreation. The law was passed in 2000, but it was not to our benefit at that time to go any further because of the way it looked at Green Oak Township. We had thought that the law would be passed with School District boundaries as an identifiable means of dividing up Green Oak Township. It was not, but in 2002 it was changed which allowed us to look at Green Oak Township by voter precinct. The Articles speak specifically to three precincts in Green Oak Township that are primarily within the South Lyon School District. There has not been any rush in this process. The legislation also stipulates that you can only go for a millage question in a year where there is a state-wide primary and general election. The earliest that the millage question would come into play would be 2008. They want to become the South Lyon Area Recreation Authority so that the public realizes who they are and that they have been in existence in 1999. The next step is to survey the entire region through a professionally done Master Plan. By voting for the Authority at this point in no way stipulates that we will be going forward with a tax issue. There is a lot of work to be done on their end and with the various boards involved to make sure that this is a regional Authority and everyone’s needs are being met.

Mayor Doyle asked if the language is the same for all three communities. Mr. Lackey stated that it is. Mayor Doyle questioned if the ballot language would be the same in all three communities. Mr. Lackey stated that it would be. The ballot would have to pass in all three communities. If one community votes No, the other two could not carry.

Discussion was held on how an issue gets on the ballot. Attorney Lee stated that of the Board, a 2 to 1 vote could put a question on the ballot. City Manager Cook stated that from a functional standpoint, it would come before the Council and Township Boards because Council has the right to direct their member on how they want this to go through the Authority. Furthermore, the City does have the ability to withdraw from the Authority. Mr. Lackey stated that one change that was requested by Lyon Township, was that there be a unanimous vote or veto power that each community’s representative has as it relates to acquisition, whether by purchase or by gift of a parcel of land.

Councilman Morelli stated that he is not an advocate of this whole idea. The current Recreation Council does a phenomenal job. He does not understand why we would go any further than that. It is his understanding when this is put in place, the Authority would not take over any expense of current parks in any of the communities. Anything that is currently in our town, we would still maintain. Mr. Lackey stated that the way they are currently structured is that they are 95% funded through user fees. By voting on the Authority would not change the current funding. Councilman Morelli questioned the City’s funding. Mr. Lackey stated that they have left multiple funding options available. They could continue to be funded exactly the way that they are now. If the community chooses to vote on recreational millage, the additional contribution would cease to come to the Authority. A third option would be a combination of both. If millage is passed for a specific purpose, and if for some reason, the Senior Center was turned over to the Authority, for example, a portion of that still could be subsidized by the communities. Could there potentially be relief to a municipality for existing properties, that option exists in their current structure as well, they just do not have the funding mechanism to take that over. If they were to go for a millage and part of that clearly says that part of that millage is to be used for development at an existing park, that could be part of what is funded through the millage. When they do their strategic plan, that could be part of the relationship. They are not at that point. Further discussion was held on the Master Plan process. City Manager Cook stated that these things need to be discussed and put forward during the master planning and dealt with by the member communities.

Councilman Morelli stated that before he can get behind this and support an Authority that could levy millage, he needs to know what are the savings to the community on the other end. Councilman Kivell stated that the millage will be derived from the budget that is established to accomplish the tasks that are decided. Attorney Lee stated that the City is not giving up budgetary authority. No City money could be spent without Council approval.

Councilman Morelli stated that right now we put our budget together and know what our budget is for recreation. This document indicates that the Authority will tell us what our portion should be. City Manager Cook stated that right now, we get that number from them to put in our budget. In addition, we have a maintenance budget for our recreation properties. That is not going to change until a levy comes forward, but we will have a financing plan and everything will be in order so that everybody understands what is being asked for. Also, once there is a Master Plan, they can apply for funding on a bigger scale because now we are representing more than one community. This might open up some doors that are not currently available.

Councilman Morelli asked if when this is done, will it be similar to the District Library where if you do not live within the district, you cannot use the service. Mr. Lackey stated that currently they have a non-resident policy. Anyone who does not live in the communities pays 25% more. That would remain the same.

Councilman Morelli questioned a portion of the law that indicates that a tax levy to pay a bond or a note by the Authority shall not exceed five years without approval of the majority of the electors. He asked if we are going to pay it back in less than five years that there are monies levied that does not go to the electors. Attorney Lee stated that the Headlee Amendment precludes any borrowing or additional taxes that are not approved by the electorate, that is a given outside of this process. This agreement says that any bond acquired must be repaid with the one mill limitation. City Manager Cook stated that proceeds have to be paid from the one mill. Councilman Morelli stated that according to what he is reading, it only has to go to the electorate if you cannot pay it back over five years. Attorney Lee stated that the Michigan Constitution says that all debt, not payable within your budgetary amounts, must go to the people. You cannot borrow something that requires $80,000 a year in principal and interest if you are only receiving $79,000. You have one mill to work with to run the organization and pay back any indebtedness.

Councilman Morelli questioned the portion of law that discusses audit. He asked if any of the municipalities can request an audit to see if the way you are spending the money is right, not just that the books are okay. Mr. Lackey stated that they are currently audited every year and discussed at the monthly board meeting. Mr. Morelli stated that this is different than being audited to make sure the money is going to where it is supposed to be going and people are getting paid who are supposed to be, etc. Attorney Lee stated that you have a member that serves on the Board of Directors of the Authority. Councilman Kivell stated further that one benefit of having the two mill debt would be that we could look at matching grants with things that would have constraints by State or Federal and we would have to be in compliance with the rules that obligate that money.

Councilman Morelli questioned whether this is the only route you can take in order to go after federal monies. City Manager Cook stated that you have to have a Master Recreation Plan, if you do not have one, the DNR will not look at it. That is what they want to do, but they do not have any funds to match anything they would go after.

Councilman Morelli stated that he thinks that they do a great job, but does not see that this is necessary. He further stated that the tax issue and how Governor Granholm wants to handle things is going to run people away from Michigan. Every community is in the same boat. They need to fight for their residents, and a big part of that is quality of life, which is very good here as well as the surrounding areas, yet we have the highest overall millage. We are going to lose residents. He discussed our proximity to Kensington Metro Park, our trail system, we have pools available everywhere, etc. We already have these things, and he does not think that the tax that is going to be levied is worth it.

Councilman Wedell asked for a brief description of who is going to write the master plan, who will approve it, etc. Mr. Lackey stated that they will not start that process until we have a strategic plan. They will put out RFP for the various planners that specialize in recreation plans. It will be a regional plan. There will be a community wide survey, focus groups, etc. that will generate the information. The plan is approved by the Board of the Authority and it has to be approved by the Michigan Department of Natural Resources. Only with an approved plan on file with the DNR do you qualify to submit for State or Federal grants. Councilman Wedell asked how the DNR is involved with that. City Manager Cook stated that they are the funding source for Federal grants.

Councilman Dryer stated that he has been looking forward to the Authority becoming a reality for a long time. Although he can understand the concern of Councilman Morelli, there is a lot that the Authority would have to do to get a millage passed. It would have to be approved in three communities and if people are not excited about what is being presented, they are not going to vote for it. The only way it would be approved is if the people feel that the tax would be worthwhile. This gives us a vehicle to do things as a larger group that there is no way that we could do by ourselves. He further asked the effective date of the Authority. Mr. Lackey stated that if they get approval tonight, the attorney will file with the Secretary of State, so it would be within two weeks. Councilman Dryer stated that it would then be within 20 days of that the Board Representative and Alternate would have to be appointed.

Councilman Kivell stated that he had the good fortune of being in on this at its inception and it is something that we have been long trying to accomplish. The protection of the potential tax increase is the nature of this whole thing. The electorate has to be the ones to decide whether an endeavor we may want to get into is justified by paying out of their own pockets. He asked that in the event that we approved a less than one mill levy for a 20 year duration, and before that expires could we enter into another project that would keep us within that one mill. City Manager Cook stated that we could with another election. Councilman Kivell stated that this is the potential to fulfill our voter’s recreational dreams.

Councilman Morelli stated that it is exciting to see things happen, but other communities have put these things forward. However, when a municipality decides to build its own ice arena, all other ice arenas in the area closed because they could not compete. He gave further examples and stated that communities are spending money and putting businesses that are paying taxes out of business at the same time costing taxpayers money. Councilman Dryer stated that he cannot think of any business in the area that provides the kind of service that is being looked at. Councilman Morelli stated that we will not be seeing any new coming in. Councilman Kivell stated that they would not be going out of business if they were fulfilling the needs of the community. He further stated that if this does not go forward, down the road, we will end up paying for recreational opportunities for the entire region out of our own budget as opposed to getting assistance from those around us that would be taking advantage of our system at the same time not paying anything.

Councilman Morelli asked once this goes through, what is going to be provided that is not already being provided. Councilman Kivell asked if the same service is going to be provided, why would it cost anymore money. Councilman Morelli stated that if there is a possibility of one mill and every taxpayer is going to be spending an extra $150-200 that is a lot more money than what we are paying now. It is working fine now, so what are we trying to fix with that extra money that everyone is going to be paying. Council Member Maida stated that no taxes have been raised yet. Councilman Wedell stated that there is no millage without a project. Councilman Morelli questioned then what project is it that we are trying to go after. Further discussion was held on future projects and the Master Plan process. Mayor Doyle stated that Steve Lackey and his team have put a tremendous amount of work into this, far be it for Council to stand in the way. Put it in front of the voters. If the economy is the same in ten years as it is now, it probably will not happen. It just allows us the mechanism.

Councilman Kivell stated that the biggest part of this is to get this whole thing out of the way so that in the event that an opportunity presents itself to have a project that would justify having one mill, you do not want all of this in addition to explaining what the project is. If this goes through and nothing changes, then we have lost nothing.

CM 1-4-07 – APPROVAL THE ARTICLES OF INCORPORATION–S.L. AREA RECREATION AUTHORITY

Motion by Dryer, supported by Kivell

To approve the Articles of Incorporation for the South Lyon Area Recreation Authority

VOTE: MOTION CARRIED (1 OPPOSED)

NEW BUSINESS:

1. Proposed purchase of 24 spare bottles - Self Contained Breathing Apparatus (SCBA)

Chief Kaska stated that he is requesting to purchase 24 SCBA packs and 24 spare bottles from the City of Grosse Isle. He stated that the City of Grosse Isle replaces their equipment every 8-10 years. He stated that Lt. Johnston and he went down to look at a new fire truck they had gotten and discovered they were getting new equipment and selling their old equipment.

Chief Kaska explained the Self Contained Breathing apparatus as well as the existing equipment currently used by the Fire Department.

The question was asked how old these can be before they have to be replaced. Chief Kaska indicated 23-24 years old. He further stated that these are used on almost every call except medical runs.

Councilman Dryer asked why Grosse Isle does not think these are good enough. Chief Kaska stated that it is not that they are not good enough, but they have reached the age of 10 years and it is time to replace them. He further stated that this is a completely volunteer department. They get no pay as a firefighter. All money received, including money received for transport goes right into equipment.

Councilman Dryer asked if the Fire Department has ever had any of these fail. Chief Kaska stated that from time to time you may have a valve fail. He stated that we will go through all of these, flow test them and clean them. Grosse Isle’s actual fire runs are very low with only approximately 500 per year. 91-92% of their calls would be medical.

The question was asked what will happen with the old ones. Chief Kaska stated that some will be used for training. He has also talked with Bob Martin. They have 30 year old Scott units that they are required by law to keep at the Water Treatment Plant. These will also be replaced.

CM 1-5-07 – APPROVAL OF PURCHASE OF SCBA PACKS AND SPARE BOTTLES

Motion by Morelli, supported by Maida

To approve the purchase of 24 Interspiro air packs with 24 spare bottles from the City of Grosse Isle in

the amount of $5,400

VOTE: MOTION CARRIED UNANIMOUSLY

COUNCIL COMMENTS:

Councilman Kivell asked if we are doing the ice rink this year. Superintendent Renwick stated that they have been watering it daily. Councilman Dryer stated that the lights were not on. Superintendent Renwick stated that it is not ready yet.

Councilman Dryer stated that at the last meeting, we talked about the Road Commission Strategic Planning meeting and asked if we have any dates. City Manager Cook stated that he has not had a call back yet, but would expect a meeting some time in March.

Councilman Dryer stated that he still has yet to be contacted by a Census enumerator. He stated that he has asked if there is a problem with the number of census workers and it has been indicated that there is no problem. City Clerk/Treasurer Zemke stated that we are in the process right now. The last two sections that were started were the Carriage Trace Subdivision and the Eagle Heights/Lyon Blvd. Area. We did not have enough enumerators at the time to have 12 people go out all at once. There are people now doing those sections. If we had people at the time, they would already have been through. We are using people who have already conducted sections. It does take time and those are very large sections. They will get to you. They are out there with weather also playing a role. The question was asked if there is a timing issue. Clerk/Treasurer Zemke stated that we do not have a timing issue at this point. It has been 3 ½ months. Our re-check has been completed with the exception of 3 sections.

Councilman Morelli asked the status of the new Italian Restaurant and the expiration of the liquor license application. City Manager Cook stated that he still has some time. Don Waldenmayer has indicated that it will be ready mid to end of February. We did cover that aspect with the original resolution and indicated that he could come back and request an extension if needed.

Councilman Kivell stated that there has been some discussion about doing a new Master Plan. He feels that it would be helpful to request the Planning Commission to attend a Council meeting so that there is no problem with Open Meetings Act with Council showing up at a Planning Commission meeting. City Manager Cook stated that Kristen Cunningham will be coming back in a couple weeks and we will be able to get a better handle on where they are and what kind of time frame we are talking about.

ADJOURNMENT

CM 1-6-07 – ADJOURNMENT

Motion by Morelli, supported by Kivell

To adjourn the meeting at 8:45 p.m.

VOTE: MOTION CARRIED UNANIMOUSLY

Respectfully Submitted,

_______________________________ ________________________________

John Doyle, Jr. Julie C. Zemke

Mayor City Clerk/Treasurer