REGULAR MEETING OF THE COUNCIL OF THE CITY OF NOVI

 MONDAY, JULY 2, 2001 AT 7:30 PM

NOVI CIVIC CENTER – COUNCIL CHAMBERS – 45175 W. TEN MILE ROAD

Mayor Clark called the meeting to order at 7:30 PM.

ROLL CALL: Mayor Clark, Council Members Bononi – absent/excused, Cassis, Csordas, DeRoche, Kramer, Lorenzo

Member Kramer added, under Mayor & Council Issues, Item 2, Opticom System.

Mr. Klaver asked to add Item 3, Joint Meeting with the Building Authority, to Mayor & Council Issues.

Ms. Reutter asked to add Representative Cassis, Item 3, under Presentations for a presentation to Mayor Clark.

Member Kramer indicated due to working on the Korean Veterans Recognition Day the Communication Committee had not been able to meet to consider the material. He advised Council that the 1999 information and an updated survey of what other communities are doing in 2001 had been included in their packets for their review. A meeting has been scheduled and the recommendation would probably be back to Council by the July 16^th meeting.

PRESENTATIONS - Citizen Recognition

Mayor Clark stated the community was what it was and worked as well as it did because of the dedication and commitment of its citizens. Council is only part of the picture and without the citizens the community would not be what it is today.

In November 2000 there was a Road Bond Proposal to insure the traffic concerns of the City could be met. The citizen volunteers made this a reality and we are now seeing the results of their commitment and dedication and would see it over the next five years.

The EMS and Fire Services Task Force has had over 20 meetings at 7:00 AM, which is a real commitment, and dedication on the part of the citizens of this community.

Tonight, we will thank citizen volunteers because without them this community would not work.

Mayor Clark presented the 2000 Road Bond Citizen Committee members with a key to the City of Novi. Presentations were made to: Asa Smith, Jerry Coonce, Antonia Nagy, John Chambers, Dale Meyers, and Richard Faulkner who was also on the EMS Task Force Committee. Dan Tarrant and Tom Marcus were not present for recognition.

Mayor Clark presented the EMS & Fire Services Task Force members with a key to the City of Novi. Presentations were made to: Jerrod Hart, Mary Beth Rich, Jerry Roddewig and Walter Sobczak.

Representative Nancy Cassis was present to pay tribute to Mayor Clark. Last April the City of Novi and the Novi Community Schools participated in a joint meeting and recognition at Oakland Schools. This wonderful opportunity celebrated what school and City could do together for the good of everyone. It is appropriate this be done tonight on the eve of Fourth of July, our own Independence Day.

This tribute signed by Governor Engler, Senator Bullard and Representative Cassis was a State of Michigan special tribute to Richard Clark, Mayor of Novi, for his inspiration and his creation of the "So Proudly We Hail" program that was instituted between our City, community and schools. Mayor Clark has been a leader among men and Mayors in terms of recognizing the veterans in our own community and surrounding areas. Some who were forgotten for years and years have now received their appropriate medals. Mayor Clark took charge of this, went further, and created a special day to honor WW II veterans and the superlative day of recognition for those who served in Korea. We know next year we can look forward to serving the courageous men and women who served in Vietnam. It is because of Mayor Clark’s dedication and commitment that we so proudly present this special tribute. We hope it will hang in the Mayor’s quarters for all to see because, truly, what he has done is unique. She hoped it would be a model for young people to continue to work with veterans so their stories will not be forgotten but live on in video and tape.

Mayor Clark thanked Representative Cassis for the tribute on behalf of himself and the veterans.

CITY MANAGER - Meadowbrook Commons Update – Craig Klaver

Mr. Klaver reported on operational issues regarding this topic. The construction is proceeding and August 3^rd is currently scheduled for the completion of the main building. An update would come on Friday and there are indications this might be moved back to September 1^st. They need to determine when leasing can start before making commitments to people. They want to have supervised tours of the facility because it was hard for many people to visualize it from a blueprint. Out of the 60 ranches there are 45 currently occupied and another five with signed leases. It has been a challenge to rent out units when there is still an active construction site but the Building Authority thought it was important to do so and the Council supported it. They are hoping to have the main building pre-leased so there won’t be any kind of staging. Out of 115 units they have deposits on 87 and they are waiting for a guaranteed move in date. About 90% of the reserved units would translate into signed leases. Kathy Smith-Roy has followed this closely and is comfortable with how it is proceeding but until the completion date and rent is pinned down a precise budget is not possible.

He felt the project was going well. Most of the residents were extremely pleased with the units, although a little frustrated that the carports and parking lots have not been finished. A sidewalk would be provided in the next week or two that would connect all the ranch units to Holy Cross Church.

Mayor Clark asked Mr. Klaver to give Council an update after the letter is received Friday from Lockwood Construction giving a final update on the construction schedule.

Member Cassis asked if there were any other elements beside weather and construction holding up leasing all of the units? Mr. Klaver said no, but one of the delays was the landscaping. A lot of the sub-contractors wanted to wait so they could do their part of the job all at once, for example sidewalks. Construction is the biggest hold up.

Member Cassis asked if the units had been advertised. Mr. Klaver said yes.

Mr. Klaver said the Beck Road bridge over I-96 would be closed on the weekend of July 14^th and again on July 21^st due to concrete repairs. If it rained the work would be rescheduled for July 28^th and if they don’t have to reschedule they hoped to have it completed by July 28^th.

Also, there were two customer reply cards for the Fire Department. One was for Maryanne Bednarski and the other for Lt. McFall and the gentleman with him when they were at the Marriott giving a seminar.

ATTORNEY – Update regarding tax avoidance by house renters.

Mr. Fisher noted this was a follow-up on suspicious situations that might have arisen in the City relative to the so-called Homestead Exemption. This arose out of a proposition approved in the mid 90’s that materially altered the property tax system in our State. It gave people owning and occupying significant property tax relief on their homes and limited the amount of increase of taxable value for assessment purposes. In order for the system to work a person must not only own and occupy but they could only have an exemption on one piece of property in this State.

When property is bought a transfer tax statement is filed that specifies you bought the property and whether or not you will occupy it. Then one of two things might happen. The seller of the property might file a rescission of their exemption if they were claiming an exemption on a new parcel of property. If they did not do that then that homestead exemption would continue until the end of the year which would give the new purchaser an exemption on two parcels. There is a lag time at the State level of sorting out duplications or conflicts. Once an affidavit for Homestead Exemption is filed it is sent to Lansing and they do a duplication analysis.

If the Assessor made a judgement that someone might be claiming two exemptions or did not own and occupy a particular parcel, even though no rescission affidavit had been filed, the Assessor would have the authority to remove the exemption from the property. This can be done retroactively. The property owner can then contest and appeal that decision and can take it to the Michigan Tax Tribunal. He said Mr. Lemmon helped him sort this out and indicated there was a property that had come to his attention. He will revoke an exemption where it is clear someone was gaining the benefit of a duplicated exemption.

Member Csordas thanked Mr. Fisher and Mr. Lemmon and said what they have is a non-resident taking unfair advantage of tax paying residents in the City. This person has two more homes in the City and can’t be living in all of them so we need to rescind that tax credit and get credit where it is due. He had provided Mr. Fisher with a list of 14 other people that might be in that same situation in one subdivision in the City. He asked Mr. Klaver and Mr. Helwig to put together an action plan that checked every subdivision in the City. The Presidents of the homeowners associations could provide lists of the rented homes. It is his impression that there are a significant number of properties that fall into that category. He asked that an action plan be put together in the next month or so because there is significant revenue to be recovered.

Member Cassis said apparently there is a problem here and asked why in this age of computers something like this was happening. Mr. Fisher said while the computers are there it took a body to operate the system and the State has been short handed.

Lisa Zervos, 21951 Garfield Rd., spoke about speeding drivers on Garfield Road. Her dog had been killed a few days earlier by a speeding vehicle and was not the only one

to be killed. The Police Department has stepped up their patrolling of the area, there has been a speed monitor on the side of the road, the speed limit has been lowered and residents have placed posters along the side of the road to remind drivers to slow down.

The residents were wondering if speed bumps might be considered. However, it is still a problem and she appealed to Council to help them come up with a more concrete solution before it takes a human life.

Mayor Clark said this is a problem all over the City. It is an issue of individual responsibility. This will be brought to the attention of the Police Department and also asked Chief Shaeffer to talk with the local District Court. Perhaps a message has to be sent by the Court that there are severe penalties if caught speeding in the community and not just severe penalties for drunk drivers. If someone is injured or killed it makes little difference, at that point, whether speeding or drinking caused it.

Member Kramer said the South Lake Traffic Committee and the City did an initial assessment and were going to try traffic calming measures in the South Lake area as well as on Cider Mill. He thought it would be a good idea to also put Garfield Road in the queue with Cider Mill and further their investigation to see if these techniques would work.

Mayor Pro Tem Lorenzo noted Council took this issue very seriously across the City and in fact did allow, during budget time, for the hiring of police officers specifically for speed enforcement. A radar gun would also be purchased and there would be classes/training for residents learn how to use it and report those who are speeding to the Police Department.

Toni Nagy, 22647 Cranbrooke, thought the new Forester, Mr. Printz, was polite, knowledgeable, responsive and a very good hiring choice. She also felt Mr. McCusker was doing a very good job and wanted Council to know that they all appreciated it very much.

Mayor Pro Tem Lorenzo pulled Item B from the consent agenda.

A. Approve Minutes of:

a. June 4, 2001 – Regular meeting

b. June 18, 2001 – Regular meeting

Authorization to apply for and accept, over the Internet, the 2001 Local Law Enforcement Block Grant.

Authorization to hold a public hearing on July 16, 2001 for the Local Law Enforcement Block Grant (LLEBG) 2001 proposed use of funds.

Schedule a public hearing for Monday, July 16, 2001 to approve the reprogramming of Community Development Block Grant Funds.

Approval to purchase three (3) radar units for the Police Department motorcycles through the State of Michigan Joint Purchasing Program from Kustom Signals, in the amount of $4,827.

Approval to purchase two (2) Optech 3P Eagle Voting Machines from ES&S, in the amount of $11,050.

Approval of Resolution to authorize Budget Amendment 2002-0 Communications Equipment.

Approval of Claims for and Accounts – Warrant No. 600.

Mayor Pro Tem Lorenzo spoke with Judy Thompson Deroshian of MML and she explained that the rule of thumb was that the dollar amount per occurrence was more relevant than the aggregate amount. For future reference, MML requires the per occurrence amount be equal to what the City’s per occurrence amount is.

Member Kramer requested Council support and direction to administration to create an annual wish list of modest items. Eagle Scout projects, community group projects, donation of park benches, etc could accomplish these items.

Member DeRoche thought this was a great idea and he would support it. The City needs more organization and as a Council person he looked forward to giving his input as to what he would like to see done. He felt it would be a good idea to bring ideas forward for consensus of Council and discuss them at a forum to see if they should be added to the list for consideration. Then schedule time to discuss them once a year and pare the list down to the ten they wanted to keep.

Mayor Pro Tem Lorenzo wanted to modify the language. The previous language regarding possible acquisition would be confusing to the public and possibly stir up opposition from that confusion. She thought it important that very clear and concise information be given to the public so they know exactly what they would vote on. She felt missing from the verbiage was the fact that it would be on the existing 7 acres that the library owns. Therefore, she wanted to amend the language of line 6 starting after the word "facilities" add "on the existing library property" within the City.

Mayor Clark said Bonding Attorney, Mr. Neiman drafted this language. He thought there had to be input from him before changing this language because of the import it might have in terms of any bond proposal.

Mr. Fisher assumed that Mr. Neiman would have some comment on it. He might approve it or require an adjustment depending on whether or not it undermined the legal veracity of it.

Mayor Clark asked when the ballot language deadline was for the November election. Mr. Fisher said probably in August.

Mr. Fisher said, for the foreseeable future the proposal would probably be fine, lawful, and approved. The issue of some concern was that this is a millage that is requested in perpetuity. At some point in time a decision might be made to move the library to another location and if that limitation is there and they want to spend the money elsewhere it would have to be re-approved. Mayor Pro Tem Lorenzo said if the public saw this as a bait and switch situation there could be opposition to it.

Mr. Chambers, Library representative, noted that the Novi Library Board had consistently said they would build on the current Library site in the Civic Center Complex and would not build anywhere else. The Library Board had talked that In fifteen, twenty or thirty years from now they might want to construct a branch library someplace else in the community. They had talked about this as a philosophy or direction.

Mayor Pro Tem Lorenzo appreciated the Library commitment and asked Mr. Chambers, during the Library campaign, to make the location issue very clear and concise for the voters.

To adopt the resolution submitting Library Millage Proposal.

Mr. Fisher advised this was before Council as a result of a review on the part of the State Department of Treasury of the Tax Abatement Agreement adopted by Council and approved by Novi Expo in January of this year. The State had advised the City that the Expo Center’s Industrial Facilities Exemption Certificate could not include the mentioning of $500,000 for off site infrastructure improvements that might be needed to accommodate the development of the new Center. Therefore, Mr. Fisher presented a revised Industrial Facilities Exemption Agreement for Council consideration. Mr. Fisher had verbally clarified to the State that if the Council voted in favor of this the modified agreement and cover letter would be transmitted clarifying the likelihood that commitments like this would be the subject of further discussion during land use approvals that were entirely unrelated to the tax abatement.

Mayor Clark said first there are conditions imposed upon us by bureaucrats in Lansing that want to help business, which he had no problem with because it also benefited the community and then they want to dictate every "t" and "I" in the agreement. They haven’t got a clue as to the local conditions in most of the communities that they are dictating to and he found that very frustrating. This happens repeatedly and he asked where due process had gone.

Mayor Pro Tem Lorenzo would not support the motion because she didn’t think the Expo Center would bring an extraordinary investment in building or an extraordinary increase in tax revenue without the abatement or particularly with the abatement.

Member Cassis noted he had encouraged Mr. Chen to come up with something that would start some excitement and bring some life into the Main Street area to attract people to the businesses that are there. He was glad this request was made and knew Mr. Chen could come up with future activities that would attract different people from different areas of life to the Main Street area.

Member DeRoche noted that during Mayor’s Exchange Day the City was very proactive in working with the business owners in the downtown area. They worked with the business owners in terms of closing streets, coordinating permits, etc. The City wanted to know what was going on and definitely wanted to encourage Mr. Chen and other businesses in the area to have more events. He hoped the administration continued to bring events forward to Council and if policies needed to be put into place to streamline the process for the downtown area he would encourage them to bring them forward.

Mr. Klaver noted Mayor Pro Tem Lorenzo had asked him if this particular feature of the project was covered under the bonds and the answer is yes.

Member Kramer suggested forwarding the resolution to other cities in Oakland County.

Member Cassis noted he had talked with County Commissioner Crawford who supported this resolution and hoped Council agreed.

Mayor Pro Tem Lorenzo thanked John McCulloch for stepping up to the plate and providing some well needed proactive leadership for the County. Mayor Clark concurred.

Member Csordas recommended that the poor performance of AON be researched and consideration be given to termination of their agreement. This was a very critical piece of business to the City financially and risk wise and he was disappointed that there wasn’t a competitive bid brought in on this.

Mayor Clark commented this seemed to be the consensus of Council and Mr. Helwig was not enamored with AON either. This is being looked at.

Member DeRoche said the underlying issue was that Novi had dug itself into a little bit of a hole as far as what an insurance company looked at as a good client. Our risk and outstanding liabilities have not always been the best either. He encouraged Mr. Klaver to keep going down this road.

Member Cassis felt Member Csordas might not have all the information about AON. Member Cassis said since he had been on the Consultant Review Committee and dealt with AON he had not had any problem with them. They came in and gave a very thorough report with situations the City needed to address. He asked that Council be cautious, as there had not been a Consultant Review Committee meeting in a long time. Therefore, they have had no opportunity to bring AON back and ask them a few questions. He spoke in defense of AON and did not think they should start lynching them. We owe it to them to listen and see if they will deliver or not.

Member Kramer said when AON was contracted there were two phases of work and they are still working on phase one and a draft was submitted. There are a lot of recommendations in it that need thoughtful consideration. They need to complete phase one and they would take it up with them as soon as they are willing to speak to them.

Mayor Clark commented that no one was trying to lynch anyone but he had looked at the draft too and to say he was not impressed was the understatement of the year. It was not what they were paid for. We cannot even get our phone calls returned.

Absent: Bononi

CONSENT AGENDA REMOVALS FOR COUNCIL ACTION: (Consent Agenda items, which have been removed for discussion and/or action.

Mayor Pro Tem Lorenzo requested that in the future before the contract is negotiated and ready to be signed there is dialogue with Chief Shaeffer regarding the percentage of increase

and the justification. We have the potential to request from these cities up to 10% each year. We are providing a service to these cities and the administration of a program for them and should be looking at the maximum amount each year.

Mayor Clark said at the last Ordinance Review Committee a motion was passed to bring this to Council. However, because of the importance of this ordinance and the long term effects it would have on our city and in fairness to the community and property owners he did not think this could be considered fairly during a regular meeting. He proposed that Council agree to a date for a Special Meeting with the Gateway Ordinance as the only agenda item. He asked this be done before the end of July.

A Special Meeting was set for July 17^th, Tuesday, from 7 PM to 10 PM. Mayor Clark asked that the meeting be published in Novi News and the property owners in the district be notified.

Member DeRoche asked that everyone read their packets and come prepared for discussion.

Member Kramer said Chief Shaeffer had done an internal department study of the Opticon System and provided a report of the system that offered improved emergency services response capability. He liked the amendment of a phased in approach and priorities for the intersections that are most busy and have the most accidents. He asked that Council put this proposal on the table and if there is money not committed in emergency services a program might be started to implement this on a periodic basis. He asked for Council support to have this brought back when doing the budget update in late summer or early fall. There was consensus.

Mr. Klaver suggested meeting on Monday, August 6^th at 7 PM. There was consensus of Council.

Mayor Clark asked Council to save Item #3 from communications as it would come before Council on July 16^th.

1. Letter from Larry & Nancy Burtka, Re: Eagle Court of Honor August 5, 2001.

2. Letter from Douglas Shaeffer, Police Chief, Re: Opticom Systems.

3. Letter from Mark A. Sturing Re: Lot 134, Autumn Park.

4. Letter from Ted Minasian Re: Downtown Gateway Ordinance.

5. Letter from William Bowman-Thompson Brown Realtors Re: Downtown Gateway Ordinance

There being no further business to come before Council, the meeting was adjourned at 9:11 PM.

Richard J. Clark, Mayor Nancy Reutter, Deputy Clerk

Transcribed by: ______________________________

Charlene McLean

Date approved: July 16, 2001