CITY OF FENTON COUNCIL PROCEEDINGS Monday, October 24, 2011 City Hall Council Chambers 301 South Leroy Street Mayor Sue Osborn called the meeting to order at 7:30 PM. The invocation for the evening was the Lord’s Prayer and was followed by the Pledge of Allegiance. Present: Absent: Others Present: Faricy, Jacob, King, North, Osborn, Rauch, Smith. None. Stephen Schultz, Legal Counsel; Lynn Markland, City Manager; Michael Burns, Assistant City Manager; Brad Hissong, Zoning Administrator; Tonya Molloseau, City Assessor. CITY MANAGER’S REPORT Markland was joined by the Council in welcoming back Councilman Rauch after his absence. Markland reported that the Clerk’s office has been dealing with several issues regarding the Recall question for Representative Scott on the ballot for the upcoming election. Markland further updated the Council about a dispute that is occurring between Blue care Network and Beaumont Hospital which could affect the City employees that are still insured with them. Markland was happy to report that the Police Unions have agreed to switch to the new health insurance program and the enrollments are already taking place. Markland further reported that the Treasurer’s Department has been working diligently and on-line payments are now available for the public to use for the City. Lastly, Markland reported that OHM has been working with the administration on the design concept for the North LeRoy Street project and have run into some challenges with the section of roadway in front of VG’s, however, they are working hard to develop the best solution to the issue. COUNCIL MEMBER COMMENTS Rauch expressed his thanks to everyone for their support while he has been absent due to illness. Smith stated that a Community Garden meeting was held on Saturday and the group is looking forward to another successful season next year. Smith added that the garden produced 5800 pounds of produce that was distributed to needy families in the City. Smith also commented on the Haunting Event that was organized by John Strayer at the Fenton Community Center stating that it was a great event with over 200 people in attendance. King apologized for having to miss the Meet the Candidates event sponsored by the Chamber of Commerce but added that she had provided her responses to the questions to the media for publication. King also reported that the Loose Center will be having a meeting on October 25, 2011 to develop a plan for funding a new building. They are making progress and trying to move forward. King stated that activities are still happening for the Center and thanked the Lasco family for their donations to help. King further stated that Carl Gabrielson is acting as the Executive Director for the time being until the position can be filled. LEGAL COUNSEL COMMENTS Schultz stated that he had been working on a number of resolutions for the City. Schultz provided an update on labor negotiations and stated that Fact-Finding with the Teamsters has been adjourned as they have reached a tentative agreement and he hopes to have the contract settled. Schultz further stated that final offers for 312 Arbitration with the Police Department are due next week. MAYOR’S COMMENTS Osborn thanked John Strayer for organizing the event at the Fenton Community Center and added that it was an excellent event and very good for the City. Osborn also thanked the Lasco family for their generosity towards the Loose Center and reminded everyone that Trick-or-Treating hours in the City would be from 6:00 PM to 8:00 PM. CITIZENS COMMENTS – None. CONSENT AGENDA Osborn reviewed all items that were on the Consent Agenda. King stated her objection to street soliciting in reference to the Old Newsboys request because of the danger of it. A motion was made by Rauch and seconded by Smith to approve the consent agenda containing the following items: YEAS: NAYS: ABSENT: Approve the minutes from the August 8, 2011 regular Council meeting. Council authorize payment of invoices in the amount of $157,016.30. Approve and place on file the minutes of the September 29, 2011 IFTE Committee meeting and a public hearing notice for the electric customers of Consumers Energy for October 28, 2011. Approve the request of the “Old Newsboys” to conduct their annual paper sale in the City of Fenton on December 9, 2011 from 6:00 AM to 5:00 PM. Appoint Melissa Bossardet to a first term on the Beautification Commission to expire on September 1, 2014. Faricy, Jacob, North, Osborn, Rauch, Smith. King. None. Motion carried by roll call vote. PUBLIC HEARING FOR THE LDFA REVENUE SHARING AGREEMENT Burns reviewed the tenants of the Revenue Sharing Agreement with the Local development Finance Authority for fiscal year 2012. Osborn opened the public hearing at 7:53 PM. Osborn closed the public hearing at 7:54 PM due to lack of comment. RESOLUTION NO. 11-22 A motion was made by King and seconded by Jacob to approve Resolution No. 11-22, which approves the agreement for revenue sharing between the City of Fenton and the Local Development Finance Authority for fiscal year 2012 in the amount of $200,000. YEAS: NAYS: ABSENT: Jacob, King, North, Osborn, Rauch, Smith, Faricy. None. None. RESOLUTION DECLARED ADOPTED. PUBLIC HEARING FOR THE REZONING OF THE LASCO PROPERTY Mr. Lasco, owner of Lasco Ford located at 2525 Owen Road was present to address the Council concerning their request to rezone a parcel of property that they own that is adjacent to the existing business in order to utilize the property as part of the business. The parcel in question is currently zoned Low Density residential and they would like it to be zoned for General Business District. Carmine Avantini, of LSL Planning and Zoning Administrator Hissong were available for comment. Osborn opened the public hearing at 7:55 PM. Steven Smeltzer, of 829 South Adelaide Street, confirmed that the business located here would have an advantageous result if the property was rezoned and stated that he thought this change would be a good opportunity. Osborn closed the public hearing at 7:57 PM. Faricy questioned if the old Truck Road parcel would be combined with this parcel and Avantini stated that the road parcel is a part of the rezoning request. Hissong stated that the consolidation of the parcels is the next step in this process and will have to be reviewed by the Planning Commission. Avantini explained that the Truck Road parcel only has potential to be an emergency vehicle access drive and that any other uses would not meet the setback requirements. Faricy stated that residents have expressed some concern about this parcel generating traffic. Hissong explained that the Planning Commission placed a condition upon the Special Land Use that this parcel was not to be used for any other purpose besides emergency vehicle access. Osborn stated that the Lasco family has always been very good about keeping compliant and any future owner would have to get a Special Land Use approved of their own. Jay Lasco stated that their purpose was to block off the drive for security purposes. North added that the property is land locked and has no access to it. Jay Lasco stated that he had spoken to the surrounding neighbors about what their intentions are and informed the Council that they have disabled the speaker system outside the building to alleviate the noise. King questioned the lighting of the establishment in this area and how it would affect the residents. Avantini explained that many of the residents’ concerns have been addressed and what has not been taken care of can be addressed through the site plan review process. Hissong added that more landscaping enhancements could be added as well. A motion was made by North and seconded by Jacob to approve the rezoning of property located at 2525 Owen Road from Low Density Residential to General Business District. Motion carried by voice vote. PUBLIC HEARING FOR ACUMENT GLOBAL TECHNOLOGIES INDUSTRIAL FACILITIES TAX EXEMPTION Burns reviewed the request from Acument Global Technologies for tax relief and cited their eligibility under Public Act 198. Burns stated that the IFTE Committee was recommending approval of this request. Osborn opened the public hearing at 8:12 PM. Osborn closed the public hearing at 8:13 PM due to lack of comment. RESOLUTION NO. 11-23 A motion was made by North and seconded by Rauch to approve Resolution No. 11-23, which approves an Industrial Facilities Tax Exemption for a period of five (5) years for Acument Global Technologies. YEAS: NAYS: ABSENT: King, North, Osborn, Rauch, Smith, Faricy, Jacob. None. None. RESOLUTION DECLARED ADOPTED. PUBLIC HEARING FOR CREATIVE FOAM INDUSTRIAL FACILITIES TAX EXEMPTION EXTENSION Burns reviewed the request of the extension of tax relief for Creative Foam and cited their eligibility under Public Act 198. Burns added that under their MEGA tax exemption it is required for the local jurisdiction to approve the exemption. Osborn opened the public hearing at 8:17 PM. Osborn closed the public hearing at 8:18 PM due to lack of comment. RESOLUTION NO. 11-24 A motion was made by Smith and seconded by North to approve Resolution No. 11-24, which approves the extension of an Industrial Facilities Tax Exemption for Creative Foam for a period of five (5) years. YEAS: NAYS: ABSENT: North, Osborn, Rauch, Smith, Faricy, Jacob, King. None. None. RESOLUTION DECLARED ADOPTED. NSP SUBRECIPIENT AGREEMENT Markland reviewed that the subrecipient agreement at hand was the next step in order for the City to continue to participate in the Neighborhood Stabilization Program. A motion was made by Rauch and seconded by Jacob to approve the Neighborhood Stabilization Program Subrecipient Agreement to continue with the Neighborhood Stabilization Program. Motion carried by voice vote. DOWNTOWN DEVELOPMENT AUTHORITY (DDA) ASSISTANCE WITH THE TAX TRIBUNAL PROCESS Burns reviewed the need for the financial assistance from the DDA to help with the appeals to the Tax Tribunal of property owners in the DDA District. City Assessor Molloseau stated that the number of appeals that are getting filed are going up every year and appraisals are needed in order to defend the City’s position. Molloseau stated that the City could stand to lose nearly $330,000 in revenue if the appeals are lost at the Tribunal level. Molloseau stated that generally they do not bid out this service because the bid process could delay the appeal process. Molloseau further stated that an appraisal may not need to be conducted for every appeal because the owners may seek an appraisal of their own and submit it to the City. Osborn stated that the City should consider a local appraiser when deciding who they will contract with. A motion was made by Faricy and seconded by Rauch to allow for the Downtown Development Authority to allocate $40,000 to assist in defending tax appeals for properties located within the DDA district. Motion carried by voice vote. DOWNTOWN DEVELOPMENT AUTHORITY (DDA) BUDGET AMENDMENTS Burns reviewed that the DDA has been obliged to reprioritize some of its endeavors in accordance with recent developments such as the Cornerstone Project, assistance with Tax Tribunal Appeals, and revisions to the DDA Marketing Plan. Because of these facts, Burns stated that the DDA is requesting budget amendments in the following areas: Removing $535,000 from the Silver Parkway Lighting project line item. Adding $500,000 to the Master Plan Implementation line item to be utilized ideally for potential property acquisitions and the Cornerstone Development. Removing $80,000 from the Gazebo Improvements line item. Adding $40,000 for appraisals to the appraisals line item. Adding $47,000 for Bond Fees due to the refinancing of DDA bonds. Reducing $1,000 in the Conference and Dues line item. Adding $64,000 to the Walnut Street Project as this project carried over from fiscal year 2011 and was the amount of unencumbered expenses for that project during the last fiscal year. Adding $30,000 to the Wayfinding budget as this project carried over from the fiscal year 2011 budget and was the amount of unencumbered expenses for that project during the last fiscal year. Transferring $6,600 from the DDA Event Marketing line item to the DDA Marketing line item. Smith questioned if the Silver Parkway Lighting Project was still going to be completed because a lot of money has been spent on this project for engineering and design. Burns stated that the DDA would still like to complete this project and they have the proper tools in place to complete it when the time is right. Faricy questioned if the Council would be receiving more information on how these funds are being spent. Burns stated that the Council still has final approval of the accounts payable and added that more information about all of the DDA’s projects would be forthcoming. A motion was made by North and seconded by Jacob to authorize the request of the Downtown Development Authority to make the requested amendments to their budget, as provided, resulting in an increase in expenditures of $65,000 for fiscal year 2012. Motion carried by voice vote. LOCAL DEVELOPMENT FINANCE AUTHORITY (LDFA) MARKETING AND REUSE STUDY Burns reviewed that the Local Development Finance Authority believes that a marketing and reuse study conducted for the Industrial Park would be a tremendous asset to help the LDFA know what direction they should pursue when soliciting further development in the Park. Burns contacted the University of Michigan to gain a proposal for services to produce the study. Larry Molnar, of the University of Michigan was on hand to answer any questions. Molnar reviewed his credentials and stated that the purpose of the study would be to get a picture of the potential of the Industrial Park as well as research grant funding. Osborn stated that a study of this nature is very necessary for development. Faricy confirmed that there are no other existing studies of this nature. Molnar explained that the study will be quite extensive. Smith questioned if the University would pursue the grant funding or would the City administration. Molnar stated that the University would guide and facilitate grant funding but would not actively seek grants on the City’s behalf. A motion was made by North and seconded by King to approve for the Local Development Finance Authority to begin the Economic Development Marketing and Redevelopment study for the Industrial Park at a cost not to exceed $20,000. Motion carried by voice vote. CALL TO THE AUDIENCE Theresa Doan, of 901 Worchester Drive, addressed the Council and thanked them for their service to the City. She wished Rauch the best of luck in retirement and praised the performance of Osborn, Faricy, and King and wished them luck in the upcoming election. Stephen Smeltzer addressed the Council again to advocate for the support of the Bossardet family’s request to keep chickens in the City. Smeltzer stated that he and his wife are neighbors of the family and are not bothered by noise or odor because of the animals. Doug Tebo, of 409 Bent Oak, stated his agreement that the City should allow for keeping chickens. CLOSED SESSION A motion was made by Osborn and seconded by Faricy to enter into Closed Session to discuss the purchase of property. YEAS: NAYS: ABSENT: Osborn, Rauch, Smith, Faricy, Jacob, King, North. None. None. Council recessed to Closed Session at 9:10 PM. Council reconvened to Open Session at 9:42 PM. Meeting adjourned at 9:43 PM. _____________________________ Mayor Sue Osborn _____________________________ City Clerk, Jennifer Naismith