City of Northville CITY COUNCIL REGULAR MEETING MINUTES August 20, 2012 Mayor Johnson called the meeting to order with the Pledge of Allegiance at 7:30 p.m. in the City of Northville Municipal Building, City Council Chambers, 215 W. Main Street, Northville, Michigan, 48167.

ROLL CALL Present:

Mayor Christopher Johnson, Mayor Pro Tem James Allen, Councilmembers Nancy Darga, Michele Fecht, and Ryan McKindles

Absent:

None

Also Present:

City Manager Patrick Sullivan, City Clerk Dianne Massa, Finance Director/Treasurer Sandi Wiktorowski, DDA Executive Director Lori Ward, Police Chief Gary Goss, Robert Nelson of Northville Brewing Company, representatives from American Express, Sondra Jenkins from the Detroit Institute of Arts, and reporter from the Northville Record. There were no citizens present.

PRESENTATIONS A. Citizens Comments None

B. Detroit Institute of Arts Presentation – InsideOut Program In 2010, the Detroit Institute of Art (DIA) celebrated the 125th anniversary of the founding of the museum. As part of the celebration, a program was developed that would provide a way for the museum to share forty of its most famous works of art with communities located throughout Wayne, Macomb, Oakland, and Washtenaw counties. Selected works of art were digitally reproduced on waterproof material and installed outdoors in open spaces and on exterior walls of buildings. The project was modeled after an exhibition organized by the National Gallery of London, who in 2007 installed framed reproductions of its most popular paintings through the streets of Soho. The City of Northville was selected to participate in the Anniversary celebration and the 1862 Frederic Edwin Church oil on canvas painting, Cotopaxi, was installed on the Main Street façade of the Dancing Eye Gallery building. Over the summer of 2010, residents and visitors to Northville enjoyed the opportunity to view the work of art in the open air setting. In 2012, the Downtown Development Authority (DDA) requested to participate in the program. DDA staff worked closely with the DIA staff to select six sites for installation, to coordinate the visit, secure installation agreements with all building owners, and promote the program to the Northville community. The following is a list of art work currently installed in Downtown Northville: • A Woman by Amadeo Modigliani – 1917/20 - Located at the Northville Art House • The Communicant by Gari Melcher – 1900 - Located on the west façade of Northville Square

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Interior of St. Peter’s, Rome – Giovanni Paolo Panini – 1750 - Located on the south façade of Dancing Eye Gallery Syria by the Sea, Frederic Edwin Church – 1873 - Located on the west façade of Buckminster’s Pub Annunciatory Angel by Fra Angelico – 1450/55 Located at the south end of Town Square Asafo Flag by Unknown (African) – 1863 - Located in Hutton Park

The DDA staff has held several planning meetings with other organizations to develop programs around the outdoor exhibit. DIA docents led tours of the exhibit at the recent Buy Michigan Now Festival, and plans are being developed to have lantern tours during the annual Victorian Festival. The DDA will continue to work with the Northville Central Business Association, Arts Commission, Chamber of Commerce, Northville District Library, Parks and Recreation, and Community Center to explore ways to utilize the resources of the DIA and to provide opportunities for the community to access the incredible collection of art work installed in Downtown Northville. Sondra Jenkins, Executive Director for Human Resources of the DIA was present. Ms. Jenkins briefly spoke about the successful InsideOut program, the various DIA outreach programs, museum programs, and how the recently approved millage will impact the community. She voiced appreciation to the voters and the community for supporting the DIA.

APPROVAL OF AGENDA AND CONSENT AGENDA Motion Allen, seconded by Fecht to approve the agenda and consent agenda as presented. Approve City Council Minutes of: - Regular Meeting of August 6, 2012 Receive Bills List: Checks #80434 to #80516, EFT’s #500102 Receive Board and Commission Minutes: - Beautification: 5/7/12; 6/4/12 Receive Departmental Reports: - Youth Assistance: 8/12 Board and Commission Appointments: - Beautification Commission: Appoint Douglas Bingham to fill a vacancy with a term expiration of 6/30/15 Special Event Request / Northville High School Homecoming Parade / October 12, 2012 Special Event Request / Car Tunes Fall Festival / October 6, 2012 Motion carried unanimously.

PUBLIC HEARINGS A. Request to Add Two Liquor Licenses / Northville Brewing Company The Northville Brewing Company L.L.C., owned by Robert and Carina Nelson, requests to add a “micro brewer” license and a “small distiller” license to their existing “Small wine maker” license. A “micro brewer” means a brewer that produces in total less than 30,000 barrels of beer per year and may sell the beer produced to consumers at the licensed brewery premises for consumption on or off the licensed brewery premises. In determining the 30,000 barrel threshold, all brands and labels of a brewer,

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whether brewed in this state or outside this state shall be combined and all facilities for the production of beer that are owned or controlled by the same person shall be treated as a single facility. A “small distiller” means a manufacturer of spirits annually manufactured in Michigan not exceeding 60,000 gallons of spirits, of all brands combined. “Spirits” means a beverage that contains alcohol obtained by distillation, mixed with potable water or other substances, or both, in solution, and includes wine containing alcoholic content of more than 21 percent by volume. The applicants submitted the Liquor License Review Committee Application indicating that they intend to operate two locations for full-service tasting bars serving wine, beer and spirits made on their premises. Their premises includes the buildings located at 630 Baseline (primary tasting room), and 714 Baseline and includes the adjoining outdoor service areas approved in August 2011. Both addresses are located on the Northville Cider Mill property. The applicants plan a limited food menu and patrons may sample or purchase wine, spirits or beer for consumption on-premises or for consumption off-premises. The applicants plan to provide acoustic entertainment, i.e., guitar or piano. The hours of operation will be daily from 12 noon until 10 p.m. The owner, Robert Nelson, has stated that the business will produce fruit brandies that will mainly be used to fortify wine purchased from St. Julian’s. There will be a small still on the premises. Additionally, the business will produce “Aged Beer” similar to a Belgian style of beer. They hope to fill a niche for persons that enjoy that style of beer. There is no plan to expand the outdoor seating or the type of entertainment currently provided. The applicants have paid all applicable fees to the City. Proper notice has been given to surrounding residents and businesses according to ordinance. The Police Department can find no reason to object to approval of these requests. The Liquor License Review Committee has reviewed the application and has recommended City Council pass a resolution requesting the Michigan Liquor Control Commission approve the applicants request for these two additional licenses. Public hearing opened at 6:43 p.m. No comments. Public hearing closed at 6:43 p.m. Council Comments/Discussion: The applicant noted that they plan to begin sales in approximately 60 days, which is toward the end of their cider season. Motion Allen, seconded by Darga to resolve that the request made by Northville Brewing Company LLC to add a “micro brewer” license and a “small distiller” license to their existing “small wine maker” license be considered for approval. It is the consensus of this legislative body that the application be recommended for issuance. Motion carried unanimously.

RESOLUTIONS AND ORDINANCES A. Zoning Ordinance Amendment / Central Business District Overlay / Second Reading At its regular meeting of August 6, 2012, City Council introduced for first reading, proposed amendments to the Zoning Ordinance. The proposed zoning amendment affects Article 2 Zoning District and Mapping Interpretation, Article 10 Central Business District, and Article 15 Schedule of Regulations. The draft Central Business District Overlay Zone for a portion of North Center Street, from Randolph Street north to Walnut Street, maintains the current underlying zoning yet overlays additional regulations.

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Key items in the proposed ordinance amendment include: • Permitted uses within the CBD overlay zone would still be allowed. • New permitted uses would include first floor residential uses such as single-family, multi-family, assisted living, or housing for the elderly. • Proposed regulations would restrict the building height and establish larger rear yard setbacks on a graduated scale. • The overlay district would also establish a minimum 10-foot setback along the front with a maximum front setback of 15 feet. • New standards for access management, shared driveways, parking, and landscaping are also proposed. Motion Fecht, seconded by Allen to waive second reading and adopt the proposed amendments to Articles 2, 10, and 15 in the City of Northville Zoning Ordinance, pertaining to the establishment of a Central Business District Overlay zoning district, as presented. Motion carried unanimously.

B. Amendment to Chapter 82 Traffic and Vehicles in the Code of Ordinances / First Reading On January 9, 2009, the Governor signed two public acts that created what has become commonly known as Michigan’s “super drunk” law. With an effective date of October 31, 2010, this law amends several sections of the Michigan Vehicle Code and adds a new definition of drunk driving applicable to drivers with bodily alcohol content (BAC) of 0.17 or more grams of alcohol per 100 milliliters of blood, per 210 liters of breath, or per 67 milliliters of urine. Drivers convicted under this new definition will be subject to enhanced punitive and license sanctions and will also be required to undergo one year of alcohol rehabilitation, which may be an alcohol treatment program or a self-help program. The enhanced punitive and license sanctions will apply only to first-time high-BAC offenders. A person violating the Super Drunk law is subject to imprisonment of up to 180 days. The City of Northville’s local ordinances adopted the Michigan Motor Vehicle Code but limit enforcement of that code to those sections that are punishable by 93 days in jail or less. In 2012, the Governor signed Public Act 7 of 2012, allowing communities to enforce local ordinances targeting drivers considered "super drunk." Under that authority the City may amend Section 82-24 to allow the Police Department to charge those who have been arrested with a BAC of .17 or greater under local ordinance rather than state law without diminishing the enhanced punitive and license sanctions. When an individual is charged with a crime under State Law, the majority of fines and costs associated with a conviction are sent to the State. If the person is charged under local ordinance then most of the fines and costs are retained by the 35th District Court. This will not only assist in financing the court but may improve the court’s excess operating costs that are returned to local jurisdictions. From a Department standpoint, this amendment will be revenue and expenditure neutral. The City Attorney and the City Prosecutor have reviewed the proposed ordinance amendment to Chapter 82, Section 82-24 and find it acceptable. Motion McKindles, seconded by Allen to introduce for first reading, the proposed amendment to Chapter 82 Traffic and Vehicles, Section 82-24 Penalties in the City of Northville Code of Ordinances as presented, with second reading and possible adoption scheduled for September 17, 2012. Motion carried unanimously.

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NEW BUSINESS A. American Express Credit Card Issuance Public Act 266 of 1995 governs the use of credit cards by municipalities. In conformance with those requirements and sound financial management, in 2006, the Northville City Council approved a Credit Card Policy, an Internal Controls for Use of Credit Cards, and Credit Card Procedures. Recently, City staff was approached by American Express to consider using their Corporate Payment Solutions program. The City would be issued a credit card which would be used to make payments for vendor invoices and is tied to a rewards program. The City would earn 1 reward point for every dollar spent. The points are unlimited and do not expire. The rewards can be redeemed for purchases on Amazon.com or to receive a credit on the monthly statement. An analysis performed by American Express found four of the City’s larger vendors which accept American Express. Those four vendors combined are paid approximately $575,000 annually. The reward points would earn $4,024 annually to be used with Amazon.com or a $2,874 credit on the account. It is proposed that only one card would be issued, which would be in the control of the Finance Director. The use of the card would be for specific approved vendors only. All payments made using the card would first be approved by the appropriate Department Head. It is also proposed that the reward points be redeemed annually by taking a credit on the statement. The credit would be allocated proportionately to the Departments where the purchases were made. The City Attorney has reviewed and finds acceptable the Master Commercial Account Agreement. Council Comments/Discussion: Further explanation was given pertaining to the vendors that accept American Express (i.e. Waste Management) and how paying those invoices through American Express would create a revenue source. Under the Corporation Membership Rewards Program, the only cost to the City is the $110 annual card fee. There are no other interest fees or use fees. In this program, the City will take the statement credit and use that credit to offset expenses. American Express representatives indicated that its clients that accept American Express will not be charging the City a use fee. Those clients have already incorporated the use fee for American Express into their prices. Council suggested that the Finance Department track the vendor payments (i.e. payments to Waste Management) to ensure that the City is not paying an increased cost to make its payment through American Express, rather than through Accounts Payable. Motion Allen, seconded by Fecht to approve the issuance of an American Express credit card for the purpose of making specific vendor payments and authorize the Finance Director to sign the Master Commercial Account Agreement on the City’s behalf. Motion carried unanimously.

B. General Fund Transfers for Fiscal Year Ended June 30, 2012 The accounting for the City’s fiscal year ended June 30, 2012 is significantly complete. The annual audit will begin on August 27, 2012. Before the financial accounting is finished, City Council is asked to consider final year-end fund balance transfers. City staff has continued to closely monitoring expenditures. As of today, the General Fund is expected to end with a surplus of approximately $400,000 for June 30, 2012. It was budgeted to end with a surplus of approximately $100,000. The additional $300,000 surplus is due to the following: 1. Professional service categories are hard to predict as they are not consistent from year to year. Most came in under budget, including:

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General, Prosecution and Labor Attorney services ($23,000) Document imaging administrative services ($2,000) Planning, HDC and BZA services (16,000) Building Inspector, code enforcement, and other inspectors ($9,000)

2. Utility Costs were under budget, including: • Natural gas for City Hall ($3,000) • Water and sewer usage at Mill Race Village ($1,500) 3. Due to the minimal snowfall last winter, maintenance of the parking lots and decks did not require nearly as much salt usage or DPW staff time. This resulted in cost savings in the General Fund of nearly $28,000. 4. The Fire Department began providing fire suppression services to the City of Plymouth beginning January 1, 2012. The budget was established with a 15% contingency for unforeseen expenditures of which $22,000 was not required. In addition, the reimbursement from the City of Plymouth was underestimated by $16,000. 5. Overall DPW costs for maintenance of property and administration were approximately $45,000 under budget. DPW services are allocated to the fund in which they actually worked. Lower than projected DPW services were performed in the General Fund. 6. The Police Department was $30,000 under budget in wages and fringes. This was due to several factors: • Lower than anticipated overtime ($5,000) • Lower than anticipated new hire wages and fringes due to timing of actual hire dates ($14,000) • Error in budget amendment process resulting in higher budgeted wages than required ($11,000) 7. A reduction to the reserve for property tax appeals in the General Fund resulted in a positive impact of $50,000. 8. Higher than anticipated license, fees, and permit revenue of $8,000. 9. Overall cost control measures by City Staff resulted in a savings of $46,500. The Finance Department recommended the following General Fund transfers be considered: - A transfer of $42,000 from the General Fund to the Public Improvement Fund, which would be committed for City Hall Building Improvements. City Hall was renovated in 1998. Since that time, very little improvements to the building have been required. As the building is aging, improvements such as a roofing, carpeting, painting, front entrance sign, and lighting upgrades will be required. There is currently only $40,000 set aside for such improvements. -

Post-retiree health care is a significant liability for the City. A valuation is currently being finalized and should be completed this week. It is expected that the unfunded liability will be approximately $37.8 million. The City has $4.6 million set aside in a trust specifically for that purpose. During FY12, the City transferred $132,000 into the reserve. An additional transfer of $150,000 from the General Fund to the post-retiree health care trust fund is recommended.

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The voting booths for elections are aging and deteriorating. Several new booths were purchased during the current fiscal year, but additional replacements are warranted. A transfer of $8,000 from the General Fund to the Public Improvement Fund is requested to be committed for

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replacement election equipment. -

$100,000 would be transferred to the Public Improvement Fund for the FY13 contribution to the Police Equipment Replacement Fund ($67,000) and the Fire Equipment Replacement Fund ($33,000). This will eliminate the budgeted transfers in FY13 from the General Fund.

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The remaining surplus of approximately $100,000 will stay in the General Fund, as budgeted.

Motion Darga, seconded by Allen to authorize City Staff to transfer $300,000 from the General Fund as of June 30, 2012 to the following funds for the specified requests: - $150,000 transfer to post-retiree health care trust fund. - $50,000 transfer to the Public Improvement Fund for City Hall building improvement reserves and elections equipment. - $100,000 transfer to the Public Improvement Fund for FY13 Police and Fire Equipment Replacement Fund contributions for future equipment purchases. Motion carried unanimously. C. Business Assistance Program / Cycle 8 On May 15, 2012, merchants and property owners were notified of the current Business Assistance Program Cycle 8. The deadline for grant applications was June 22, 2012. Six Commercial Improvement Grant applications and one Technical Assistance Grant applications were received. The Business Assistance Program (BAP) Advisory Committee met on July 25, 2012 to review the grant applications and determine which should receive funding and the extent of the funding. The BAP Committee’s recommendations were forwarded to the Downtown Development Authority (DDA) for consideration at a special DDA Board meetings held on July 31 and August 14, 2012. Below is a summary of the Commercial and Technical Improvement Grant applications and the recommended awards. The current budget for Commercial Improvement Grants and Technical Assistance Grants, as approved by the DDA Board and City Council, is the remaining funds for Cycle 7 which amounts to $14,159.00. That figure is a combination of left over funding from Cycle 7 ($12,226.00) and one denied claim ($1,932.50). Commercial Improvement and Technical Assistance Grants Applicant

Property Address

Total Estimated Cost

Total Estimated Eligible Reimbursement

Total Funds Approved

Commercial Laura Genitti Laura Genitti Laura Genitti Ernie Zack Janice Johns James Spagnuolo

108 E. Main 112 E. Main 132 E. Main 120 N. Center 410 E. Main 115 E.Main.

$2,800.00 $5,650.00 $8,882.90 $6,000.00 $1,980.00 $4,600.00

$1,400.00 $2,825.00 $4,441.45 $3,000.00 $ 990.00 $2,300.00

$1,400.00 $2,825.00 $4,441.45 $3,000.00 $0 $2,300.00

109 N. Center

$ 500.00

$0

$0

$31,860.00

$15,680.00

$13,966.45

Technical Laura McQueen and Maria Vasseliou Total:

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The current budget for Technical Assistance Grants has no available funding and no disbursements are recommended for this cycle. The current budget for Commercial Improvement Grants as approved is $14,159.00. Recommended for award is $13,966.45. he Council Comments and Discussion: Council questioned whether the paint used on the building at 410 S. Main was deficient, which might have prompted the grant request to repaint again four years later. It was responded that while the paint has slightly faded, the property owner indicated that it was her personal preference to repaint. The BAP Committee deliberated and chose to award grants to other applicants that had not yet received a grant. Additional discussion ensued pertaining to the consideration of revising the grant award criteria. Most of the grant requests are for general building maintenance. It was suggested that the BAP Grant Committee meet to consider implementing a percentage sliding scale for BAP grant awards as an incentive for the business/property owner to do more to improve their building other than just general maintenance. Any modification to the grant award criteria should be in place prior to any future BAP grant cycles, should funding become available. Motion McKindles, seconded by Fecht to approve funds for Cycle 8 of the Business Assistance Program as recommended by the BAP Advisory Committee and the DDA Board of Directors. Motion carried unanimously.

MAYOR AND COUNCIL COMMUNICATIONS A. Mayor and Council Communications None

B. Staff Communications None

Being no further business, the meeting was adjourned. Adjournment: 8:18 p.m. Respectfully submitted, __________________________________ Dianne Massa, CMC City Clerk Approved as submitted: 9/4/2012

_______________________________________ Christopher J. Johnson Mayor