Mayor Landry called the meeting to order at 7:00 P.M.

ROLL CALL: Mayor Landry, Mayor Pro Tem Capello, Council Members Gatt, Margolis, Mutch, Nagy, Paul

ALSO PRESENT: Rick Helwig, City Manager

Clay Pearson, Assistant City Manager

Randy Auler, Parks and Recreation Director

Rob Hayes, City Engineer

Member Nagy added under Mayor and Council issues Item #4, Channel 13 video’s. And, Item #5, Spalding Inspection Costs.

Member Paul added Item #6, under Departmental Meetings, the timeframe for Village Oaks Land Grant. Mr. Helwig will cover that item under City Manager Report. And, Item #6, the home on Eleven Mile that was moved from Novi Road.

1. Recognition of 2005 Annual Holiday Decorating Contest winner, the Jeff and Carol Seelenbinder Family.

Every year the City of Novi holds an Annual Holiday Decorating Contest where homes are decorated around the City with great pride. More than 40 homes were judged this year, submitted by home owners associations. Jeff and Carol Seelenbinder were the award winners. A certificate was presented for their outstanding display of holiday decorations and for spreading the spirit of goodwill along with a gift card from Home Depot in the amount of $100.00.

1. SPECIAL/COMMITTEE - None

2. CITY MANAGER

Mr. Helwig congratulated the community and City Council on the recommendation from the Michigan Department Natural Resources (MDNR) Trust Fund Board to fund our grant request to create a new park off Meadowbrook Road. Ultimately, the grant must be ratified by the Michigan legislature and between now and then we are prohibited from undertaking the two appraisals because the grant amount is over $500,000. But we can start the process of identifying the appraisers. We can complete the process of obtaining a legal description and boundary map for the property (51+ acres). We can also complete an Environmental Part 1 Assessment and initiate discussions with the MDNR Environmental Quality regarding the conservation easement that the state has on the Rossi property West of Meadowbrook Road. There is a lot of work to do yet, however, we are included in the recommendation which is a proud effort. Council Member Mutch acted as Floor Director along with Mr. Auler, Department of Parks and Recreation Manager.

Mr. Auler stated in terms of a timeline, we will be putting information together and submit to Council soon. He has learned that it takes about six months for the State legislature to approve funding. After that, we can execute a project agreement with the MDNR. We have then one year to close on the property from the date of that project agreement. The whole process will take from six to 18 months dependent on the speed of the legislature after the DNR has submitted our request for funding approval.

Mayor Pro Tem Capello asked what the amount will be for the additional non reimbursable costs. Mr. Auler responded that most of the costs, i.e. appraisal for reimbursable costs are part of the grant application. This is the reason why we are not able to start the appraisal process now because we have to have a project agreement in hand in order for those to be reimbursed. The environmental assessment, the detailed legal description and the boundary survey can be started now because those costs are not reimbursable. At some point, money will need to be appropriated to install the signs for the park and the paving of the parking lot and the access road, this would cost between $25 and $30,000 using a gravel type surface.

3. DEPARTMENTAL - None

4. ATTORNEY – None

Ms. Linda Krieger, 44920 Byrne Drive, thanked Maryanne Cornelius for all her hard work.

A. Approve Minutes of:

1. November 28, 2005 – Regular meeting

2. December 3, 2005 – Special Meeting

3. December 5, 2005 – Regular meeting

4. December 12, 2005 – Regular Meeting

B. Enter Executive Session immediately following the regular meeting of December 19, 2005 in the Council Annex for the purpose of discussing pending labor negotiations, pending litigation and written legal opinion from legal counsel.

C. Approval to accept extension of banking services with Fifth Third Bank for an additional three-year contract period based on a 3% increase for an estimated annual cost of $17,000 to $20,000.

D. Approval of resolution to authorize the purchase of additional service credit by a City employee.

E. Approval of final adjusting change order and final pay estimate to Florence Cement Company for the Novi Road/Post Office Access Intersection Signalization project in the amount of $36,428.17.

F. Approval to apply for a DTE Energy Tree Planting Grant, for a maximum grant award of $3,000 (City’s grant share is $3,000 to be funded from the tree fund).

G. Approval to exchange one 1981 American LaFrance Quint Pumper Fire Engine to Oakland Community College in exchange for an equal amount ($7,500) of training to be provided to the City of Novi Fire Department.

H. Approval of final adjusting change order and final pay estimate to Troelsen Excavating Company for Special Assessment District No.172 – Bentley and Blomfield Subdivisions Water Main Extension project in the amount of $20,364.20.

I. Approval to extend the gasoline contract with Mansfield Oil (truck transport deliveries) and Atlas Oil (tank wagon deliveries) through MITN (Michigan Intergovernmental Trade Network), a cooperative purchasing program through January 2008. Pricing will be consistent with the original bid prices of December 2003.

J. Acceptance of Infinity Medical Center water main and sanitary sewer and approval of storm drainage facility maintenance easement agreement.

K. Acceptance of Chason Properties water main as public and approval of storm water maintenance facility agreement.

L. Approval of Resolution adopting policy, required by state law, protecting the confidentiality of Social Security numbers provided to the City.

M. Approval of license agreements from four Saratoga Circle residents to place non-standard material (brick pavers and flagstone) for private walkways within the right-of-way.

N. Approval of Claims and Accounts – Warrant No. 711.

1. Approval of Commerce Township Sanitary Sewer Agreement for Commerce Township to provide Wolverine Lake sanitary sewer service (no change in Novi capacity allowance).

Mr. Helwig said represented today were representatives from Commerce Township and the Village of Wolverine Lake. We are partners with Commerce Township and the utilization of the wastewater treatment facility on West Road is operated by Oakland County. Due to septic systems failures in the Village of Wolverine Lake, there is now a need for the service district to be amended so that 270 units can be used from Commerce Township’s unused allocation. Mayor Landry clarified that the usage will come out of Commerce Township’s usage allocation and not from Novi. Mr. Helwig stated it is a cooperative venture.

2. Adoption of Resolution for Acceptance of Membership and Adoption of Bylaws for the Alliance of Rouge Communities.

3. Acceptance of Saratoga Circle streets, water main and sanitary sewer; approval of storm drainage maintenance easement agreement and adoption of Act 51 New Street Resolution accepting Alcott Circle, Eliot Lane and Emerson Way as public, adding 3,632 linear feet or 0.688 miles of roadway to the City’s street system.

Mr. Helwig said that we had representatives from Saratoga Circle and Camden Court many weeks ago and we have been working with the developer to get this accomplished before winter. Unfortunately, we are tardy in this accomplishment and there is one neighborhood in front of this project. We hope to have Camden Court and Abby Hills at the next meeting on January 9, 2006. These are the last projects we are trying to get before Council, for the winter season, so residents can be properly served. This was recommended by Mr. McCusker and Mr. Hayes as well as the administration.

Member Paul questioned Mr. Hayes regarding the traffic pattern for construction vehicles. Mr. Hayes answered that the construction pattern has not be designated yet especially since there are only 7 or 8 houses left to be constructed. They are in the process of getting building permits now. Ms. Paul stated she would like to have a construction plan before she would approve it.

Mr. Hayes concluded that because the homes were to the back of the subdivision, the construction traffic would travel quite a bit on these roads. This subdivision would fall under the old ordinance. This development would not have to be 90% finished, like the new ordinance, before Council could accept the financial guarantee.

Mr. Helwig added that this was a more extreme case than Park Place because it has been occupied for many years. The homes to be completed are in the back of the subdivision and each will post a bond according to what we adopted at Park Place. Also, there are no good traffic patterns; unlike the Island Lake development which had many alternative routes that could be taken by construction traffic.

Member Paul concluded that Mr. Helwig was comfortable with the $81,500 that was allotted for these 8 homes and their construction. Member Paul will support this especially because there are no alternative traffic patterns.

Member Mutch questioned Mr. Hayes whether or not the concerns of the residents were addressed when the City indicated they were moving forward with the acceptance of these roads. Mr. Hayes responded that those items have been added to the punch list and they will be covered by the financial guarantee. Basically they will be addressed by the end of the process.

Member Mutch questioned the concern of maintaining Eliot Lane being it is not a typical subdivision street. Mr. Hayes answered that the Police and Fire Department were involved throughout the site plan review process and their concerns were addressed. Signage was put in place to limit parking and snow plowing would be done just as any other normal street.

Mr. McCusker stated that the street is listed on the Act 51 resolution. He actually drove through there after the last snow to make sure there would not be a problem with snow plows.

Mayor Pro Tem Capello followed up with the same question as Member Mutch and he was under the assumption that these alley ways would not be public streets but owned and maintained by the association. He asked Mr. Tom Schultz, Attorney for the City of Novi, to take a second look even if it is approved tonight. If it turns out Mayor Pro Tem Capello was right, a motion to reconsider could then be made.

Mr. Helwig added that there is no reason for these roads to not be dedicated because they have rollup curbs, driveways and grass. The only reason they are a little different is that they are in a compressed area because of the nature of the design which, obviously, the City was looking for at the time. Other Cities that have gone to this type of development do so to create a greater sense of neighborhood with the front porches and close knit community feel by keeping the vehicles in the back.

4. Appointments to Boards and Commissions

Michael J. Lynch – Planning Commission

Sheryl Khoury – Library Board

Roll Call Vote on CM-05-12-390 Yeas: Nagy, Paul, Landry, Capello, Gatt, Margolis, Mutch

AUDIENCE PARTICIPATION – None

5. Approval of Sewer Utility Ordinance Amendment 05-28.52 to amend Chapter 34, "Utilities" of the City of Novi code in order to revise the Sanitary Sewer Flow District "Exhibit A" in Sections 34-499.3, 34-490, 34-462(b), 34-499.21, 34-499.11-12 (First Reading) subject to a corresponding amendment to the related payback agreements exhibits.

Roll Call Vote on CM-05-12-391 Yeas: Paul, Landry, Capello, Gatt, Margolis, Mutch, Nagy

6. Approval of Water Utility Ordinance Amendment 05-37.31 to amend Chapter 34, "Utilities" of the City of Novi code in order to revise the Water availability fees (capital charges for City financed water availability improvements since 1976) in Sections 34- 21 (First Reading) and consideration of related draft resolution setting water availability fees.

Member Mutch asked about the change in fees from a per foot basis to per unit factor and he asked Kathy Smith-Roy to explain any negative financial project for present and future water projects coming forward.

Ms. Smith-Roy responded that the water availability fee was originally instituted in the 1990’s to address improvements that the City had put into the system. At that time, it made sense to do per linear to recover the construction costs because most of the people were commercial that would be tapping into the water lines. Now that we have done further improvements, this has impacted residential areas. In order to spread the costs to everyone, a per tap unit fee was instituted. This would have a positive impact to recover most, if not all the costs, that would be incurred with putting in those construction projects.

Roll Call Vote on CM-05-12-392 Yeas: Landry, Capello, Gatt, Margolis, Mutch, Nagy, Paul

7. Approval of Nine Mile and Center Street Utility Ordinance Nos. 05-37.32, 05-28.53,

05-28.54, 05-28.55 to amend Chapter 34, "Utilities" of the City of Novi code in order to formalize and add the following Sections 34-118.29-33, 34-499.25-28, 34-499.29-31 and 34-499.33-35. First Reading

CM-05-12-393 Moved by Paul, seconded by Nagy; CARRIED UNANIMOUSLY: To approve the Nine Mile and Center Street Utility Ordinance Nos. 05-37.32, 05-28.53, 05-28.54, 05-28.55 to amend Chapter 34, "Utilities" of the City of Novi code in order to formalize and add the following Sections 34-118.29-33, 34-499.25-28, 34-499.29-31 and 34-499.33-35. First Reading

CONSENT AGENDA REMOVALS FOR COUNCIL ACTION: None

1. Light on north bound Beck Road to west bound Grand River – Member Paul

Member Paul directed her concern to Mr. Pearson, Assistant City Manager, that the timing of the lights north bound Beck Road to west bound Grand River must not be correct. She noticed when she was waiting at that light, that when the light turned green, cars were allowed to go through. There were at least five cars that went through the light with a few near misses.

Mr. Pearson responded that we can have the Oakland County Road Commission submit a formal analysis of the timing. They originally had a problem with east bound Grand River to Beck Road so they took some time away and are still in the process of getting it corrected.

Member Paul asked about the possible addition of guardrails at the Beck Road exit (coming Westbound off I-96). Mr. Pearson explained this is an MDOT project and we would have to direct an inquiry through them. It probably would have been installed already if they thought it was a problem at the time the intersection was opened.

2. Signage on I-96 for Rock Financial Showplace – Member Paul

Member Paul wondered if the signage will be changed because currently there are two signs, one Rock Financial Showplace and the other Novi Expo Center, exit 162 which is Novi Road. It needs to be changed to one sign and have the exit information changed to Beck Road instead of Novi Road to alleviate the road congestion in that area.

Mr. Helwig explained that Mr. Bowman told him there were a few sign glitches but he was confused as to where the wrong signs were located.

3. Exit ramps from I-96 at Beck Road – Member Paul – Already addressed.

4. Channel 13 Video – Member Nagy

Member Nagy had a suggestion regarding having two items aired on Channel 13, specifically the show that Sheryl Walsh hosts: The video that was made for the Village Oaks Grant, presented to the State, was narrated and set to music. And, Moira Robinson from the Beautification Committee would like to present to residents who win Beautification awards for their homes, like they do in Farmington Hills.

5. Spalding DeDecker Contract

Member Nagy inquired about whether or not the inspection costs were included. Mr. Hayes answered that they are unit costs, however, they are included. The rate schedule is in their contract.

Member Paul directed a question to Mr. Helwig and Mr. Pearson about the cost that developers brought up regarding soil erosion. She would like to see a cost comparison from the last three Engineering firms working with us: JCK, Ayres Lewis and now Spalding DeDecker.

Mr. Helwig stated that this is not working as intended regarding the frequency of inspection with the permit from MDEQ that is required. We have made some suggestions, in a memorandum in the packet last week, about the City of Novi personnel doing this during the "dead" months (Dec 1 – Mar 31). This would reduce the costs on persons in the community doing business with us developing the community. Spalding DeDecker, had lowered their proposal, since it was adopted in September, for $175 for under 5 acres, $200 for 5-15 acres compared to $300 and $300 instead of $450 for over 15 acres.

We have enforced a one inspection per week and these developers have been hit with large invoices, Mr. Helwig would like to discuss this matter further to come up with a more cost efficient solution.

Mr. Pearson stated that the prior firm charged a flat rate per acre of disturbed soil at $135 per acre with a $700 minimum. The new schedule that has been adopted based on a per inspection fee. We think something needs to be changed in that we need to step up our reporting and inspections. The City of Novi is an enforcement agency under MDEQ and we have certain obligations we must meet.

With this new contract, Mr. Pearson felt there will be an improvement in the surveillance of the projects and the reporting. The adopted proposal fee is actually higher than previous; however, the actual amount the developers will pay will be reflective of how long the project has been going on. There are incentives for them to complete the site in a timely manner or exceed expectations and get a bonus.

In addition, we have taken charge of the winter inspections and have done the small projects (less than 1 acre lot) to keep within the same rate as before. Mr. Saven has worked with Spalding DeDecker on transition projects prior to December 1st so they do not incur a high increase in their inspection fees.

Mr. Hayes stated that by having the City of Novi staff handle the winter inspections it would reduce 20 weeks off what the developer would have to front. Mr. Hayes said he will report back with the actual costs.

Member Mutch asked about the inspection process. Mr. Hayes responded that the meetings with Spalding DeDecker field staff will be entered in an online reporting mechanism where everyone would have access which will greatly help the reporting process. Mr. Hayes thought that what Mr. Potter outlined in the proposal (a one year contract) we will be getting the best price and have increased reporting.

Member Pro Tem Capello suggested we hold a meeting with Spalding DeDecker to find a better plan. We can accommodate the State’s needs and reduce fees also. The City of Novi has struggled with making these fees more reasonable in the past and we are paying $200-$300,000 a year to a company that may only be hiring one person working 40 – 50 hours per week. These fees are too excessive.

Mr. Helwig asked that two Council Members, Mayor Pro Tem Capello and Member Paul be present at the meeting with Spalding DeDecker to discuss a way to further reduce costs.

Member Margolis suggested we look at other municipalities to see what they pay. Member Nagy asked if possibly we should look at having another company bid as well. Mr. Helwig reminded everyone that we signed a one-year contract with them so getting a competitive bid at this time is not possible.

6. The home on Eleven Mile that was moved from Novi Road – Member Paul

Member Paul noticed the house was actually on Eleven Mile Road in the right of way. Mr. Helwig said he would look into this matter. Mr. Savin stated that that house would have to meet the setback with a report following.

Board of Review - Lee BeGole

Election Commission - Brian Larson

Housing & Community Development

Advisory Committee - Jerry Ross and Ram Ramachandran

Historical Commission - Gary Gudes

Zoning Board of Appeals - Gerald Bauer, Justin Fischer and Tim Shroyer

Linda Krieger (Alternate)

AUDIENCE PARTICIPATION – None

ADJOURNMENT - There being no further business to come before Council, the meeting was adjourned at 8:57 P.M.

_______________________________ _____________________________

David Landry, Mayor Maryanne Cornelius, City Clerk

_______________________________ Date approved: January 9, 2005

Transcribed by Kristine M. Niemi