brighton city council meeting · city council regular meeting february 21, 2019 page 2 mayor muzzin...

Brighton City Council Meeting City Hall Council Chambers ● 200 N First St. ● Brighton, Michigan 48116

(810) 227-1911 ● www.brightoncity.org

Regular Business Meeting March 7, 2019 – 7:30 p.m.

AGENDA

1. Call to Order

2. Pledge of Allegiance

3. Roll Call

4. Consider Approval of the Agenda

Consent Agenda Items

5. Approval of Closed Session Minutes: December 6, 2018, January 14, February 7, February 17, 2019

6. Approval of Minutes: Study Session Meeting of February 21, 2019

7. Approval of Minutes: Regular Meeting of February 21, 2019

8. Approval to Transfer Ownership of a Class C Liquor License from MSV Brighton, LLC, DBA Stillwater Grill located at 503 W. Grand River Ave, Brighton, Michigan to SWG Brighton LLC, DBA Stillwater Grill located at 503 W. Grand River Ave, Brighton, Michigan, Resolution #19-07

Correspondence

9. Recognition of Service: Tim Krugh, Utilities Director

10. Call to the Public

11. Staff Updates

12. Updates from Councilmember Liaisons to Various Boards and Commissions

New Business

13. Consider Approval of Staff Recommended LDFA Bond Payoff and Dissolution of the LDFA

14. Saw Grant/Asset Management Presentation

Other Business


16. Adjournment

City Council Study Session 200 N First St ● City Hall Council Chambers ● Brighton, Michigan 48116


MINUTES OF THE STUDY SESSION OF THE BRIGHTON CITY COUNCIL HELD ON FEBRUARY 21, 2019

CALL TO ORDER Mayor Muzzin called the Study Session to order at 6:30 p.m.

ROLL CALL Present were Mayor Muzzin, Councilmembers: Bohn, Emaus, Pettengill, Pipoly, and Tobbe. Councilmember Gardner was absent. Staff: City Manager Nate Geinzer, City Clerk Tara Brown, Finance Director Gretchen Gomolka, Community Development Manager Mike Caruso, DPW Director Marcel Goch, DPW Superintendent Daren Collins, Assistant to the DPW Director Patty Thomas, Utilities Director Tim Krugh, Organizational Relations Manager Michelle Miller, Chief Rob Bradford, and Attorney Paul Burns. There were nine persons in the audience.

CALL TO PUBLIC Mayor Muzzin opened the Call to the Public at 6:30 p.m. Hearing and seeing none, the Call to Public was closed at 6:30 p.m.

DISCUSSION OF CIVIC EVENTS

Motion by Councilmember Bohn, seconded by Councilmember Tobbe to remove from the table the Discussion of Civic Events. The motion carried unanimously.

Manager Geinzer introduced the discussion topic noting that the new spread sheet is the complete list of all events from 2018 and those that he expects to continue from years past. Councilmember Pettengill asked what changes were made to the spreadsheet. Manager Geinzer noted that the police reserve hours were corrected. Mayor Muzzin asked that the Councilmember Bohn and Councilmember Emaus who were on the Task Force, give a brief review of the necessity for a civic event reimbursement. Councilmember Emaus would like the Fourth of July and the Veterans Day parades taken off the list for reimbursements since those events and purely civic events and do not have an entity to bill. He noted that there is not a prescribed plan to implement the reimbursement.

Councilmember Bohn noted that the three parades are the only true civic events including the High School parade. Mr. Bohn stated that the residents of the city are subsidizing the civic events. He further stated that he would support a fifty percent reimbursement with funding from other ways for the remainder. Councilmember Pettengill does not think these events are money makers. She feels these events are way too valuable. Ms. Pettengill further asked Chief Bradford why there is such a price difference between the Smokin’ Jazz and Blues and the Taste of Brighton since both events are roughly the same size. Chief Bradford noted that the beer tent at the Smokin’ Jazz and Blues event is the reason for the cost difference. Council and staff discussed the event staffing during these events, staff stated that both size and scope of the event is what dictates the price for DPW and police.

City Council Study Session February 21, 2019 Page 2

Mayor Muzzin asked how the billing will be done, will the event organizers be given an estimate with an actual invoice at the end. Director Goch replied that is correct, actual hours and equipment will be invoiced.

Manager Geinzer asked if Councils direction be a fifty percent reimbursement. He further noted that some communities provide an invoice and note a city contribution. Mayor Muzzin agreed with Councilmembers Bohn and Emaus to exclude the three parades. He further stated that the Council must do something, whether it is a fifty percent reimbursement with a phase in over three years or something else. Councilmember Bohn asks if there is possibility for the DDA to contribute fifty percent of the funding for civic events. Mayor Muzzin noted that the DDA is already contributing eighteen percent. There was a group discussion about funding and the larger events to seek out funding sources.

Councilmember Tobbe appreciates the Task Force but stated that he feels these events are what makes the City of Brighton community. Councilmember Emaus noted that he does not disagree with Councilmember Tobbe, but the city does not have the funds to fix the very roads and sidewalks the events are held on. He further stated that during a more recent event, three legal colleagues went to the hospital because of various injuries sustained on the sidewalks in the City of Brighton. Mr. Emaus stated that no amount of parties can fix the roads, he will only support one hundred percent reimbursement. Councilmember Pettengill stated that she would support a fifty percent reimbursement but not one hundred.

Manager Geinzer recommends a concise plan for fiscal year 2019/2020 to allow for organizations to plan for the 2020 calendar year.

CALL TO PUBLIC Mayor Muzzin opened the Call to the Public at 7:18 p.m. Hearing and seeing none, the Call to Public was closed at 7:18 p.m.

ADJOURNMENT Motion by Councilmember Pettengill, seconded by Councilmember Emaus to adjourn the meeting at 7:18 p.m. The motion carried unanimously.

Brighton City Council Meeting City Hall Council Chambers ● 200 N First St. ● Brighton, Michigan 48116


MINUTES OF THE REGULAR MEETING OF THE BRIGHTON CITY COUNCIL HELD ON FEBRUARY 21, 2019

1. Call to Order

Mayor Muzzin called the Regular Meeting to order at 7:30 p.m.

2. Pledge of Allegiance

3. Roll Call

Present were Mayor Muzzin, Councilmembers: Bohn, Emaus, Pettengill, Pipoly, and Tobbe. Councilmember Gardner was absent. Staff: City Manager Nate Geinzer, City Clerk Tara Brown, Finance Director Gretchen Gomolka, Community Development Manager Mike Caruso, DPW Director Marcel Goch, DPW Superintendent Daren Collins, Assistant to the DPW Director Patty Thomas, Utilities Director Tim Krugh, Organizational Relations Manager Michelle Miller, Chief Rob Bradford, and Attorney Paul Burns. There were eleven persons in the audience.

Motion by Mayor Pro Tem Pipoly, seconded by Councilmember Pettengill to excuse Councilmember Gardner for personal reasons. The motion carried unanimously.

4. Consider Approval of the Agenda

Motion by Mayor Pro Tem Pipoly, seconded by Councilmember Emaus to approve the agenda as amended, moving item number 6 to new business. The motion carried unanimously.

Consent Agenda Items

Motion by Councilmember Tobbe, seconded by Councilmember Emaus to approve the consent agenda as amended. The motion carried unanimously.

5. Approval of Minutes: Study Session Meeting of February 7, 2019


7. Approval of Cost Share for Microsoft Exchange/Outlook Migration Project with City of Howell in TheAmount of $11,274

8. Acceptance of Quarterly Investment Report

Correspondence


Mayor Muzzin opened the Call to Public at 7:32 p.m.

Susan Bakhaus stated that nominating packets for the upcoming City Council election are available. She further discussed publication of the call for candidates notice.

Patrick Tucker, Brighton Masonic Lodge, stated that on March 2, 2019, the Brighton Masons will host the 14th annual antique show at the old Hartland High School located at 9525 East Highland Rd, Howell. The event will run from 9:00 a.m. to 4:00 p.m.

City Council Regular Meeting February 21, 2019 Page 2

Mayor Muzzin closed the Call to Public at 7:37 p.m.

10. Staff Updates

Director Gomolka reminded residents that the winter taxes are due by February 28, 2019. Post marks are not accepted.

11. Updates from Councilmember Liaisons to Various Boards and Commissions

Mayor Pro Tem Pipoly stated that the DDA met on February 19, 2019 and discussed its contribution to the holiday lights for the next year, approved bills, and was happy to report that the bill from Livingston County Road Commission for Challis Road came in substantially below budget.

Councilmember Bohn stated that the Planning Commission met on February 11, 2019, they discussed a conceptual site plan for East Street/North Street. The proposed development would consist of fifty-seven units and would self-park.

Councilmember Emaus stated that the Brighton Veteran Memorial Committee met on February 13, 2019 and while he did not attend, he did speak to Chairman Conway who relayed that the group discussed initial planning for Memorial Day, methods to bring in new funds, and allocated funds for their website/electronic presence.

Mayor Muzzin met with the Brighton Area Fire Authority on February 14, 2019. During their brief meeting, they discussed property acquisition.

Public Hearing

12. Conduct a Public Hearing and Consider Adoption of the Revised Cemetery Rules and Regulations

Clerk Brown introduced the proposed revisions to the Cemetery Rules and Regulations, highlighting that shed worked closely with cemetery Sexton Dave Dillard to build a more efficient set of rules. She further stated that she and Dave are available for any questions Council may have.

Mayor Muzzin opened the Public Hearing at 7:43 p.m. Hearing and seeing no comment, Mayor Muzzin closed the Public Hearing at 7:43 p.m.

Councilmember Bohn referenced an email he received from a resident about concerns she had in regards to the cemeteries. Clerk Brown assured Councilmember Bohn that the concerns were addressed via a phone conversation. Councilmember Emaus had a few corrections and clarifications to the Rules and Regulations. Councilmember Pettengill and Councilmember Emaus raised questions and asked for clarification about the amount due when holding a grave after a new fee schedule is adopted. Clerk Brown clarified that the cost of the grave follows the fee schedule when the grave is actually purchased, not held.

Motion by Councilmember Emaus, seconded by Mayor Pro Tem Pipoly to adopt the Revised Cemetery Rules and Regulations. The motion carried unanimously.


New Business


Councilmember Emaus and Councilmember Pettengill noted that they asked for this item to come off of the Consent Agenda for corrections.

Motion by Councilmember Tobbe, seconded by Councilmember Emaus to approve the Regular Meeting Minutes of February 7, 2019 as amended. The motion carried unanimously.

13. Consider Authorizing the City Manager to Issue a Purchase Order to Resource Office Interiors, for BudgetedOffice Furnishings Replacements through MITN Extendable Bid Reference #0000175245, in an Amount Notto Exceed $27,500.

Motion by Mayor Pro Tem Pipoly, seconded by Councilmember Emaus to remove from the table the agenda item to Consider Authorizing the City Manager to Issue a Purchase Order to Resource Office Interiors, for Budgeted Office Furnishings Replacements through MITN Extendable Bid Reference #0000175245, in an Amount Not to Exceed $27,500. The motion carried unanimously.

Manager Geinzer introduced the agenda item and noted that he added individual item pricing, added photographs of current desks and chairs, and removed the Police Department chairs. Councilmember Emaus asked that if Council intends to approve this item that Council approve what has been budgeted which is the $15,000. Councilmember Pettengill stated that she agrees although she would approve $14,650. Councilmember Emaus agreed. Councilmember Bohn voiced his opposition to the item, he stated that he will vote no.

Motion by Councilmember Emaus to approve $14,600 that was allocated in the budget. The motion failed due to lack of support.

14. Award of Five-Year Contract for Waste Collection Services, with Options for Five One-Year extensions, toWaste Management

Director Goch introduced the agenda item, noting that Pat Grieve is present if Council has questions. Director Goch stated that bins are here for comparison, understanding that some of the communities with topographical issues will be addressed. Councilmember Pettengill asked about the start date and exchange of bins. Director Goch stated that he anticipates a two-week transition but education should start immediately. Councilmember Pettengill asked if Waste Management has an app so residents can look at what is allowable for recycling. Mr. Grieve stated that there is a dedicated City of Brighton website already active and literature will be supplied to each resident within the recycling bin. Councilmember Tobbe asked if the older bins would be exchanged as well. Mr. Grieve stated that all bins will be evaluated and replaced as needed. Council and staff discussed the articulating arm utilized by the newer trucks. Director Goch stated again that education is extremely important and educating residents will start immediately. Mayor Muzzin asked if plans to bring those condo associations that do not currently have Waste Management into the contract. Mr. Grieve indicated that under the contract Waste Management is obligated to increase the service addresses under the current cost. There was brief discussion about commercial waste hauling which is something that will be addressed in the future.

Motion by Mayor Pro Tem Pipoly, seconded by Councilmember Emaus to direct staff and city attorney to complete contract negotiations with Waste Management to be brought back to City Council. The motion carried unanimously.


15. Consider Authorizing the City Manager to Execute a Retainer Letter with Keller Thoma for Labor Counseland Employment Law Services

Manager Geinzer introduced the agenda item noting that four requests for professional service were sent out, three plus the current counsel. Mayor Pro Tem Pipoly stated that he found counsel from Keller Thoma to be open and down to Earth and they have considerable experience with comparable municipalities. Councilmember Tobbe stated that Keller Thoma has an excellent group of references and have worked very well with bargaining groups. Councilmember Emaus was also pleased to see that Keller Thoma worked with both large and small municipalities. Councilmember Bohn asked if a two-page contract was a sufficiently sized contract. Councilmember Pettengill asked about the process and who were sent proposals. Manger Geinzer stated that the proposals were sent to those firms recommended by peers at municipalities across Michigan, Keller Thoma was at the top of everyone’s list. She then asked if Manager Geinzer had worked with Keller Thoma in the past at a former place of employment. Mr. Geinzer stated that he had not directly worked with the firm but Farmington Hills had utilized their services in the past. Manager Geinzer further stated that references were checked and all had glowing reviews of Keller Thoma.

Motion by Councilmember Emaus, seconded by Mayor Pro Tem Pipoly to authorize the City Manager to Execute a Retainer Letter with Keller Thoma for Labor Counsel and Employment Law Services. The motion carried unanimously.

Other Business


Mayor Muzzin opened the Call to Public at 8:37 p.m.

Susan Bakhaus indicated that she had questions about the Waste Management contract.

Mike Anderson stated that he has concerns over the lights at the rear of the Corrigan business. He stated that the lights are extremely bright.

Mayor Muzzin closed the Call to Public at 8:41 p.m.

17. Consider Entering Closed Session to Discuss Collective Bargaining Pursuant to MCL 15.268(c).

Motion by Mayor Pro Tem Pipoly, seconded by Councilmember Emaus to enter into Closed Session to Discuss Collective Bargaining Pursuant to MCL 15.268(c). The motion carried unanimously with a roll call vote.

The Regular Meeting resumed at 9:50 p.m. Mayor Muzzin stated that item 18 will be removed from the agenda.

18. Consider Possible Actions Resulting from Closed Session

19. Adjournment

Motion by Councilmember Emaus, seconded by Mayor Pro Tem Pipoly to adjourn the meeting at 9:52 p.m. The motion carried unanimously.

CITY OF BRIGHTON REPORT FROM THE CITY MANAGER TO CITY COUNCIL March 7, 2019

SUBJECT: Request to Approve Liquor License Transfer from MSV Brighton, LLC, DBA Stillwater Grill Located at 503 W. Grand River Ave, Brighton, Michigan to SWG Brighton LLC, DBA Stillwater Grill located at 503 W. Grand River Ave, Brighton, Michigan.

ADMINISTRATIVE SUMMARY SWG Brighton has applied to the Michigan Liquor Control Commission (MLCC) to obtain a transfer of a

Class “C” Liquor License with the following, SDM license, for sale of beer and wine to go with growlers, Sunday Sales (AM and PM) permits, Outdoor Service Area Permit, Dance Permit and Entertainment Permit.

Brighton City Code 6‐32 requires approval of the Brighton City Council for a liquor license operation inthe City of Brighton.

The required liquor license application fee has been paid to the City of Brighton.

The Brighton City Police department has conducted an investigation of the applicant business includingall stockholders and trustees above 10% ownership. A criminal record check reveals the stockholder (s)and trustee(s) have no violations in the State of Michigan.

The applicant meets the minimum requirements for consideration by the MLCC.

The applicant meets the requirement for consideration by City Council.

The City of Brighton Code Enforcement and Brighton Area Fire Department report no code or firecode/safety violations.

RECOMMENDATION The Brighton City Police Department has determined the applicant meets the requirements of the City of Brighton’s liquor control ordinances (6‐31 to 6‐41) and therefore recommends approval of the request through the adoption of Resolution #19‐07 approving the sale of alcoholic liquor.

Prepared by: Craig Flood, Deputy Chief of Police

Approved by: Nate Geinzer, City Manager

Attachment: 1. Resolution #19‐07

Resolution #19‐07

A RESOLUTION APPROVING

THE SALE OF ALCOHOLIC LIQUOR

WHEREAS, pertinent sections of the Brighton Municipal Code require that the Brighton City Council expressly approve the sale of alcoholic liquor by any person or persons within the City of Brighton; and

WHEREAS, the applicants have applied to the Michigan Liquor Control Commission for the transfer of a state issued liquor license to be used within the City of Brighton; and

WHEREAS, the Brighton Police Department has conducted an investigation of the applicant and found said applicant to be in compliance with the Brighton Municipal Code; and therefore

NOW THEREFORE BE IT RESOLVED, that a transfer of the current license, from MSV Brighton, LLC, DBA Stillwater Grill located at 503 W. Grand River Ave, Brighton, Michigan to SWG Brighton LLC, DBA Stillwater Grill located at 503 W. Grand River Ave, in the City of Brighton in accordance with the Brighton Municipal Code.

AYES:

NAYS:

ABSENT:

RESOLUTION DECLARED ADOPTED.

Dated: ________________________ TARA BROWN, City Clerk

CERTIFICATION

I, Tara Brown, City Clerk of the City of Brighton, do hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council of the City of Brighton at a regular meeting held on March 7, 2019.

______________________________ TARA BROWN, City Clerk

CITY OF BRIGHTON REPORT FROM THE CITY MANAGER TO CITY COUNCIL March 7, 2019

SUBJECT: RECOMMENDED LDFA BOND PAYOFF AND DISSOLUTION OF THE LDFA

ADMINISTRATIVE SUMMARY

At the November 15, 2018 study session, we discussed the idea of paying off existing bonds in the LDFA andpotentially dissolving the LDFA. Council had several questions during the study session and the discussion wasremoved from the regular meeting agenda pending further investigation by city staff.

On February 25, 2019, Finance Director Gomolka and City Manager Geinzer met with the City’s Bond CounselPat McGow, who was instrumental in establishing the City’s LDFA to get answers to Council’s questions andobtain guidance on our proposal to pay‐off the debt and dissolve the LDFA.

The LDFA's only purpose since fiscal year 2011‐2012 has been to make debt payments on bonds issued in 2002for infrastructure improvements in the LDFA District. These debt payments are made with tax incrementrevenues captured from the City (approximately 80%) and a small portion from the County (approximately 20%).There are bonds outstanding of $205,000 that are scheduled to be paid off through fiscal year 2023‐2024. Atthe end of the most recent fiscal year, 2017‐2018, the LDFA had a cash fund balance of $86,197. Projections forthe end of this fiscal year would put another $25,374 into fund balance for a total of $111,567.

The outstanding bonds totaling $205,000 are callable, which means we can pay them off with no penalty and wecan eliminate all future interest payments. In order to pay off the bonds we would need an additionalapproximately $95,000.

Staff would like to propose that a portion of the general fund fund balance be used to make up the $95,000 difference needed to payoff these bonds and disolve the LDFA. Under this scenario the City would lose approximately $18,000 per year in future capture from other jurisdictions that would have been applied to the annual debt payments, however, the city would save approximately $30,000 in future interest payments.

After this pay‐off we recommend eliminating future capture for the LDFA (see discussion below). A portion ofthe city taxes that have been captured will go to the DDA for five (5) parcels that are located in both the DDAand the LDFA. Currently the capture is split 50/50 with the LDFA and DDA for those five (5) parcels. If the LDFAcapture is eliminated 100% of the captured amount for those five (5) parcels would go to the DDA.

In looking at the current fiscal year this would result in approximately $35,000 back to the general fund andapproximately $30,000 that would go to the DDA. These amounts are subject to change annually as the taxablevalue and PPT exemptions come in to play.

The current LDFA Tax Increment Financing Plan expires on June 30, 2026. There are no other infrastructureprojects currently planned for the LDFA. If the LDFA were to continue to capture amounts in excess of theremaining debt service through its expiration date, there should be a planned project to justify the continuedcapture of funds. Under the recodified TIF rules in Public Act 57 of 2018 we must report the following to theState:

For any funds that have not been expended within 5 years of their receipt: o The reasons for accumulating those funds and the uses for which those funds will be expendedo A time frame for when the funds will be expended

For any funds that have not been expended within 10 years of their receipt: o The amount of those fundso A written explanation of why those funds have not been expendedo A list of authority accomplishments, including progress made on development plan and tax increment

finance plan goals and objectives for the immediately preceding fiscal yearo List of authority projects and investments, including active and completed projects for the immediately

preceding fiscal yearo List of authority events and promotional campaigns for the immediately preceding fiscal year.

Spending any accumulated funds in the LDFA would be a challenge for the City because the funds can only bespent on certain eligible manufacturing or high technology properties within the LDFA industrial parkway district(see attached). Additionally PA 57 of 2018 outlines the limitations of what LDFA capture may be spent on, whichis public infrastructure improvements for the eligible properties as follows:

o A street, road, bridge, storm water or sanitary sewer, sewage treatment facility, facility designed toreduce, eliminate, or prevent the spread of identified soil or groundwater contamination, drainagesystem, retention basin, pretreatment facility, waterway, waterline, water storage facility, rail line,electric, gas, telephone, or other communications, or any other type of utility line or pipeline, transit‐oriented facility, transit‐oriented development, or other similar or related structure or improvement,together with necessary easements for the structure or improvement.

In evaluating the current buildout of the LDFA district with Bond Counsel McGow, we do not believe there are, or will be, any eligible projects for which any remaining LDFA capture could be spent, in which case, the LDFA would be required by law to return any surplus funds to the taxing units from which they were captured, including the City.

Public Act 57 of 2018 become effective January 1, 2019 and will impose a significant amount of compliance for both the DDA and LDFA. Staff believes that eliminating the LDFA debt and dissolution will save both money and time for the City. Paying off the bonds early requires notification to the bond holders and we have to make the payoff on a scheduled payment date, the next of which is April 1, 2019.

Bond Counsel McGow, has advised that any future desire to establish a new LDFA would be fairly easy andrequire resolutions to approve and a new baseline set to calculate the tax increment revenue.

Additionally, given the overlap of the LDFA and DDA, in addition to the eligible functions of a DDA, it isreasonable to conclude that should a project need arise the DDA could give consideration.

Following the payoff of Bonds, staff will work with Legal Counsel to develop measures to dissolve the LDFA.

RECOMMENDATION

It is recommended that City Council authorize Staff to pursue the early payoff of LDFA bonds using up to $95,000 of general fund fund balance and direct staff and Legal Counsel to bring forth the necessary measures to dissolve the LDFA.

Prepared by: Gretchen Gomolka, Finance Director

Approved by: Nate Geinzer, City Manager

Attached: LDFA District Map

brighton city council meeting · city council regular meeting february 21, 2019 page 2 mayor muzzin...

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