Mayor McLallen called the meeting to order at 7:35 P.M.

ROLL CALL: Mayor McLallen, Mayor Pro Tem Crawford, Council Members Clark, Kramer, Mitzel, Mutch, Schmid

ALSO PRESENT: City Manager Ed Kriewall, Assistant City Manager Craig Klaver, City Attorney David Fried, City Clerk Tonni Bartholomew

PRESENTATION OF COMMUNITY SERVICE PLAQUES

Timothy M. Burke (absent) - Computer Advisory Committee

Scott M. Gardner - Computer Advisory Committee

Mihran Kochyan - Computer Advisory Committee

Laura Lorenzo - Planning Commission Chair

Vincent J. Marino - Computer Advisory Committee Chair

Joseph Toth (absent) - Computer Advisory Committee

Matthew S. Weisberg - Computer Advisory Committee

Mayor McLallen thanked the Computer Advisory Committee members for their time and service. Mr. Marino introduced each member to the community.

Mayor McLallen thanked Ms. Lorenzo for her service as Chair for the Planning Commission and read the sentiment on the resolution.

PROCLAMATION - Recognition to Karen MacKenzie for years of Service to the Community as Youth Assistance Directory

Mayor McLallen introduced Ms. MacKenzie and read the sentiment on the resolution.

Ms. MacKenzie introduced Claudia Walters who will serve as her replacement.

PRESENTATION - Economic Development Activity Update - Greg Capote

Mr. Capote stated the purpose of his presentation is to provide an overview of the kinds of things he has been working on and the kinds of things he will continue to work on as his position evolves. Mr. Capote provided an outline of thirteen bullet items to follow during his presentation.

Mr. Capote advised the first item is Identification of Existing Industry Clusters in Southeastern Michigan. Mr. Capote explained the economy is seeing four major growth areas not only in southeastern Michigan, but also nationally. He advised this industry includes biotechnology, information technologies, manufacturing and materials. He added the Michigan Jobs Commission, whom he works closely with, is assisting these four core areas for reinvestment. Mr. Capote advised they estimate that the United States will see about $356 billion of wealth generated in these fields by the year 2000. Mr. Capote included this item because it is important for Novi to be prepared to be competitive in the marketplace as far as available land sites and proper infrastructure to attract these types of industries to insure the city’s economic vitality in the future.

Mr. Capote believes Novi should survey their existing businesses. He explained it is easier and less costly to keep existing businesses than to try to recruit new ones. Mr. Capote reminded Council that he previously discussed conducting a Business Retention Expansion Survey. He added it was something that the utilities’ consortium in the 1970's and 1980's endorsed. He stated Council deemed this activity to the Economic Development Corporation. However, he believes the EDC is still growing and struggling with their identity. Because of his recent training through the American Economic Development Council and the Michigan Economic Developers Association, Mr. Capote believes the initial charge of any Business Retention Expansion effort should be through one individual so that he could have more control over the process. Mr. Capote hopes to complete his survey work with existing manufacturers in light industrial areas and high end office areas within the third quarter of this year.

According to local brokers, Mr. Capote understands the OST District is one of the most attractive ordinances for high-tech industrial uses within the community and it will help secure the city’s future economic vitality. He believes the effort now is to get this district on the map. He advised he is working with the Master Plan and Zoning Committee to accomplish that task and he added that it might be a city initiated rezoning.

Mr. Capote believes that understanding where Novi’s competition is in terms of the surrounding communities is important so they can determine how to make the community more attractive to developers. Mr. Capote advised he is closely reviewing approval processes in other communities and will offer recommendations to the Planning Commission.

Mr. Capote reported Working on a Community Economic Profile indicates where Novi is on the map. He explained there are companies that provide a school of information with many types of communities and they connect that information with ten to twelve communities to narrow the search. Mr. Capote advised Novi is yet not a part of that and he would like to look at the possibility of assembling some basic information in a format that would make that information available for distribution. Mr. Capote added that the Michigan Jobs Commission has agreed to visit the community for industrial uses for possible OST sites and take this information with them as the travel internationally.

Mr. Capote advised there are many trade shows available they can piggy back with the Greater Detroit Area Chamber of Commerce, the Novi Chamber of Commerce and the Michigan Jobs Commission. He advised they are anxious to see information from community representatives to jointly sell southeastern Michigan. Mr. Capote believes Novi should participate in several shows in Chicago and Detroit next year. He reminded Council about the list of contacts he provided to them from the SAE show he attended in February.

Mr. Capote described a Brown Field Development Authority as a community that has experienced a great amount of industrial exoduses. He explained although Novi has a tremendous green field, there are some areas where it may be advantageous to establish a brown field development authority. He referred to the ACT 307 sites and advised Novi does have some troubled properties and added that using the EDC as the approving board may be possible. However, until he has an inventory of industrial sites with environmental contamination, they are uncertain at this time.

In conclusion, Mr. Capote discussed the liaison work he performs with area developers, brokers and realtors in communicating the approval process, the new site plan manual, the zoning ordinance, the OST ordinance and the entire entitlement process. Mr. Capote believes it is helpful for a business to communicate with a one-person contact. Mr. Capote believes Council is already aware of one business that has recently relocated to Novi.

Mayor McLallen believes it is important for Mr. Capote to keep Council apprized about how the community is becoming more aggressive in seeking suitable businesses. Mayor McLallen added that they can further discuss Mr. Capote’s points at their Wednesday, August 13, 1997 joint meeting with the Planning Commission.

Councilwoman Mutch asked whether Mr. Capote could provide a response in writing if Council requests further information. Mr. Capote thought that providing an overview would be best for tonight’s meeting, but advised he would answer specific questions in a narrative for the next August meeting. However, he noted that he cannot fully address all of the items by that meeting.

Councilwoman Mutch enjoyed hearing an overview that shows the range of areas where the city is initiating these efforts. She added if there are people in the community who are interested in those areas, it is good to know that Mr. Capote is the person to contact.

AUDIENCE PARTICIPATION

Doug Smith - of Walsh College and representing the Novi Chamber of Commerce, thanked Council for their leadership and realizes the investment they are making in terms of economic development in planning has great benefits and is the best way to plan for the future. He added they recently completed their two largest fundraisers which are the Blues Festival and 50's Festival. He thanked the city for its involvement and extended an open invitation for their two upcoming lunches. They scheduled the first for August 19 and advised Linda Margolian from the DIA will speak. They scheduled the second luncheon for September 25 and advised Governor Engler will attend.

Roger Jacob - 3935 Lakefront St., reported Council recently vacated the westerly portion of Erma Street, and he requested that they also vacate the easterly portion between his property and the party store. Mr. Jacob explained they originally opposed the vacation because of concerns about the party store’s delivery trucks and lack of parking for their patrons. However, he believes they should also vacate this section because there is a need for some type of separation between the future residential development of his property and the commercial party store. He added if they were to develop his property, it would be a dangerous situation for the children unless they totally vacate Erma. He further believes the city has treated him unfairly. He explained it seems as though they were pushed aside as the city addressed the other resident’s concerns. He advised although they are concerned about safety, they would like to develop their property. He would also like Council to understand that he did not receive any acknowledgment on signing any type of petition and reiterated that he is definitely in favor of the vacation.

Mayor McLallen interjected, Mr. Jacobs is referring to Item 3 on the Consent Agenda.

Chuck Young - 50910 W. Nine Mile Road, wished success for Laura Lorenzo who has represented Novi citizens in updating the ordinances. He believes Ms. Lorenzo has backed the citizens and further believes the residents are the best assets for any city.

David Landry - President, Addington Park Homeowner’s Association, advised they oppose the proposed aquatic facility at the Power Park location. He explained they find it amazing that the Council Chamber was standing room only in opposition of this issue when it was first raised. Further, Council wisely decided to table the issue for reconsideration of the size and the location. He said now they virtually have the same facility, at the same location two years later. He asked Council what do they plan to do now? He added according to the quotations he has read, Council is letting the people decide on this matter. He believes that is a good idea if they truly give the people a choice. He does not believe the voters will have a choice if the proposal reads, "Do you want to issue bonds for this facility at the Power Park location?" Mr. Landry urged Council to give the people some choices and offer location alternatives (i.e., tree farm).

Lynn Kocan - 23088 Ennishore Dr., referred to a memo from Mr. Nowicki under Communications about the Ten Mile Road conceptual design and asked why they did not include the conceptual design with the memorandum.

Mayor McLallen interjected, it is a large document and is available to read at the city or library.

Ms. Kocan referred to Item 7, Under Matters for Council Action and said she is grateful for the time that the city, Laura Lorenzo, the Planning Department, the Planning Commission and Council put into this document. She advised she has been actively involved in changes where light industrial districts abut residential districts over the past three years. She added that she believes the ordinance before Council tonight is superior to the previous ordinances in terms of mitigating industrial noise as a result of increased berm heights, they have increased landscaping opacity and they have modified the maximum allowable noise levels to compensate for day time versus night time noise levels. Ms. Kocan believes these changes help insure that there will be no adverse impacts on the quality of life for those residential properties that abut light industrial properties. Ms. Kocan recommended that Council approve the first reading with some tweaking. She referred to Page 108, Section 1905, 4. e of the final draft and believes that a four foot crest on a ten foot berm is too small. She is also uncertain whether a ten foot crest might be too great. Ms. Kocan believes Ms. Lemke should provide a recommendation about the crest width and that the final decision would reflect aesthetics, as well as protection for the residents.

Mayor McLallen asked Mr. Kriewall to provide copies of theTen Mile Road Conceptual Design Analysis of JCK & Associates, Inc. to the library and city offices for the public.

APPROVAL OF AGENDA

Councilman Clark would like to add as Item 3b. Gypsy Moth Spraying and therefore, make Item 3, Item 3a.

CONSENT AGENDA

Mayor McLallen noted there is a memo before them regarding Item 6 that advises they are changing the resolution.

Mr. Kriewall recommended that they remove Item 6 and substitute a new resolution when they get to that point.

Councilman Schmid removed Item 12 for discussion.

Councilwoman Mutch removed Items 7 and 8 for further information.

1. Approval of Minutes of Regular City Council Meeting of July 21, 1997 and Special Meetings of July 21, 1997 and July 28, 1997

2. Schedule an Executive Session to immediately follow the Regular Meeting for the purpose of Attorney’s Opinion

3. Introduction of Resolution and confirmation of the calling of a Public Hearing for Monday, August 25, 1997, Re: Partial Vacation of Erma Street - Easterly Portion

4. Adopt Resolution, Re: Reimbursement for Senior Housing Project

5. Designation of Les Gibson as MERS Officer Delegate and Kathy Smith-Roy as Officer Alternate at the Annual MERS Meeting

9. Approval of revised Property Purchase Agreement - Amoco Property - Grand River and Novi Road

10. Approval of Road Commission for Oakland County Traffic Signal Maintenance Agreement and Authorizing Resolution for the Novi Road - Ice Arena Access Road Traffic Signal

11. Approval of Road Commission for Oakland County Cost Participation Agreement and Authorizing Resolution for the widening of Haggerty Road from Orchard Hill Place to Eight Mile Road

13. Award bid for Soccer Uniforms to the Soccer Post based on unit costs

14. Approval of Offer to Purchase Real Estate from John Carlo, Inc. Parcel Nos. 50-22-09-451-007 and 50-22-09-451-008

15. Approval of Final Pay Estimate and Change Order for Future Fence Company Re: Novi Community Sports Park

16. Designation of Mayor ProTem Crawford as MML Voting Delegate and Edward Kriewall as Alternate

17. Approval of Claims and Accounts - Warrant No. 497

6. Adopt Resolution, Re: Approval of Grant Application for I-96, Beck Road, Wixom Road and 12 Mile Road Intersection Project

7. Approval of Taxi Cab Company License to operate 15 cabs to ABC Cab Company

8. Approval of Tax Cab Company License to operate 1 cab to Community Cab/Mitsu Transportation

12. Approval of Resolution of Support for the proposed abandonment of a portion of Grand River Avenue

Nays: None

MATTERS FOR COUNCIL ACTION - Part I

Mayor McLallen advised this is a citizen initiated and a city coordinated process for the issue of rear yard drainage problems. The Mayor reported there have been several meetings and 51% (11 of 20 lots) of the affected property owners have submitted the appropriate paperwork to begin the process. Further, before Council is the request for the approval of Resolutions 1 and 2 that permit the city to proceed with developing design and cost estimates for the project, and establish the first public hearing on August 25, 1997.

Mr. Kriewall added they have three alternatives developed by the city’s engineers and noted they are shortcutting the process because they already have the cost estimates for the three alternatives. Therefore, Council can pass Resolutions 1 and 2 at this time and set the public hearing.

Mayor McLallen noted there is a letter before them from Mr. & Mrs. John Bebb who are LeBost residents and reside on one of the affected properties. The Mayor advised the Bebb’s are concerned about the problem and from reading the letter she believes they want a solution, but they are not sure whether they want the solution to be addressed as a special assessment.

Mr. Kriewall advised there is a myriad of problems in the area and some problems have been caused by resident’s filling and landscaping their backyards. To address these types of problems, Mr. Kriewall reported the city now requires a rear yard drainage system that not only picks up the individual sump pump drainage, but it also collects some rear yard swale drainage. Mr. Kriewall believes if they get some swale tampering in some of the new developments, the system will still work because they have provided catch basins and inlets at various locations. However, in some older subdivisions where there are no catch basins or storm systems, the natural swale and grading of the subdivision provide for the run off. Mr. Kriewall explained several residents have been filling their backyards to try to alleviate the drainage problems. However, every time someone does that, it creates an upstream problem. Mr. Kriewall believes the only solution is to put in some kind of improvement that collects the drainage and takes care of the problem. He further advised they have issued some violations in this area because some neighbors have actually filled when they should not have filled and that is an issue that needs to be addressed on an area wide basis.

Councilman Kramer asked if the public hearing will cover all three alternatives. Mr. Kriewall replied it would.

CM-97-08-257: Moved by Mitzel, Seconded by Clark, CARRIED UNANIMOUSLY: To approve Resolutions 1 and 2 for the Willowbrook Subdivision #2 - Storm Drainage Improvements Special Assessment and to establish the first public hearing on August 25, 1997

Nays: None

2. Approval of PD-1 Option and Preliminary Site Plan extension until August 26, 1998 - Society Hill Apartments, SP 95-44D, Property located west of Novi Road, Between 12 Mile and 12½ Mile Roads

Mayor McLallen noted there are letters from staff and consultants advising that the extension does not meet any opposition, and there have been no changes in the zoning ordinance that would affect this property.

Joseph Galvin stated as a representative for Mr. Sasson, they are requesting the extension to build the project. He explained they have submitted 90% of the final plans, they are already in the Dodge Reports, they have secured financing from GMAC and therefore, they are asking for a one year extension.

CM-97-08-258: Moved by Crawford, Seconded by Clark, CARRIED UNANIMOUSLY: To grant PD-1 Option and Preliminary Site Plan extension until August 26, 1998 for Society Hill Apartments, SP 95-44D

Mayor McLallen advised all of the consultants, the Town Center Steering Committee and the Planning Commission have provided a positive recommendation.

Jim Wahl believes most of this area has been before Council more than once. He explained it was most recently before them last year and was acted on in a favorable vote of 4-2. However, he added there was a protest petition at that point and therefore, the matter was not carried forward. Because of that rejection, Mr. Wahl advised they took it back to the Town Center Steering Committee and he received several inquiries about how they should proceed with this matter because it was essential to accomplishing the design and planning of the Main Street project and the Town Center Planning Study. He reported the committee’s recommendation was to once again take up the matter for public input because there was a feeling that they had not listened closely enough to why some property owners previously rejected it. Mr. Wahl advised they held an informal public hearing at a Town Center Steering Committee meeting and noted there were no substantive objections from the property owners at those meetings. He further advised that the matter went forward to the Planning Commission and their recommendation is currently before Council. Mr. Wahl restated the basis for this zoning is to have the areas denoted on the map in harmony and in conformance with the designs they have been working toward that are already under construction. He believes this is the type of zoning they need if they want the new development in those areas to reflect and be compatible with that design. Further, he believes as far as the property owners are concerned, this will actually provide more flexibility in terms of parking and locations of buildings on sites than in the standard Town Center district. Consequently, he believes it is a mutually beneficial situation for the city and the area. Further, he advised Mr. Arroyo and Mr. Rogers are available if Council has any questions regarding the intricacies of how these provisions differ from the Town Center ordinance.

Councilman Mitzel asked if any residents have filed any protests with the city. Mr. Fried replied there have been none.

Nays: None

3b. Gypsy Moth Spraying

Councilman Clark added this item because of the correspondence received under Communications in terms of information provided concerning a serious gypsy moth infestation in the community. Councilman Clark noted they pride themselves in their woodland and wetland ordinances, and added that wooded parcels sell at a substantial premium. He would hate to see all this effort wasted because they are not addressing this infestation. Further, he understands that they did not qualify for participation in the county program, but that they may qualify next year and that the spraying must be done in the spring. Councilman Clark is not impressed with the county’s efforts in a number of areas in Novi. He added that he sometimes gets the impression that they are at the end of their list and therefore, he does not want to wait for the county to spray next year. Councilman Clark proposed that the city commit to contract their own spraying in the spring of 1998.

Mayor McLallen understands there was a meeting held this evening on this matter. She added this problem is found most extensively west of Beck and south of Nine Mile Roads. She then noted that some homeowners were ineffective in private measures.

Mr. Nowicki reported there is a meeting currently in progress and advised a county representative who heads the program is at the meeting. Mr. Nowicki advised Mr. Pargoff has been monitoring the gypsy moth infestation and has been working with the county. Mr. Nowicki believes no one knew that this would happen this rapidly and added that the county program is the most effective that they can participate in at this time. He also knows that the area residents have tried to spray from the ground and found it is not effective. He advised the county uses an aerial spray and believes they can provide lower costs for that application.

Mayor McLallen believes they need to know the cost and added according to Mr. Pargoff, the infestation is primarily on the west side. The Mayor reminded Council that Councilman Clark’s proposal is to have the city in control and asked if Mr. Pargoff has provided any costs in his research.

Mr. Nowicki believes Mr. Pargoff provided that information in his report.

Councilman Clark believes he indicated the affected area is between 30 and 45 acres, and the cost would be $22.00 per acre.

Mr. Pargoff reported they are meeting with the homeowner’s from the Nine Mile and Beck area tonight to explain the county program. He advised that he will coordinate volunteers to monitor and count the egg masses in that area, and that they will then request Council to help with the funding for the spraying program. Further, the county and the Department of Agriculture will confirm the counts that they will start in early September so that the city can prepare the proper documentation for the spring spraying. Mr. Pargoff noted this is not a total eradication program, but it is a program to reduce the gypsy moth damage.

Councilman Clark understands from Mr. Pargoff’s July 31 memo that there is approximately 30-45 acres currently affected. Mr. Pargoff replied that many acres have total defoliation.

Councilman Clark asked if the cost to the city is $22.00 per acre if the city addressed that area as a community rather than waiting for the county. Mr. Pargoff replied that was the 1997 cost to participate in the county program.

Councilman Clark asked if the county would commit to the spraying in May 1998 if the city were to say they will expend that $22.00 per acre tonight. Mr. Pargoff replied the county cannot commit until the city provides the necessary information to qualify for the program. He advised that is one of their tasks for this fall is to make certain that information is available to the county and Department of Agriculture so they will include Novi in the spraying program.

Councilman Clark asked if the area may extend beyond the 30-45 acres. Mr. Pargoff replied there are residents outside this area that have found egg masses, but did not receive the kind of damage experienced at the Nine Mile and Beck Road area.

Councilman Clark asked whether the cost is the same if the city privately contracted with a service to spray and did not participate with the county. Mr. Pargoff believes the cost is doubled, but added he is not familiar with private spray programs. He added that the Department of Agriculture has put individuals in contact with the same sprayer that the county has used.

Mayor McLallen understands that the area did not qualify because of the acreage and the moth count for 1997. However, she advised the actual event was far worse than they anticipated.

Carol Lenchek, Oakland County Coordinator for the Gypsy Moth Suppression Program, replied she was not aware of the problem until the area began to defoliate.

Mayor McLallen stated they would like to guard against this happening in other areas of the city. The Mayor asked what are their alternatives and what is the cost involved.

Ms. Lenchek stated there is no doubt that this area will qualify for the suppression program. She advised participation in this program will be the least expensive route for the city. She further advised that the field work has to be in by December 15, 1997. She explained plots are set up 200 yards apart and they count every egg mass in a 18.6 diameter. She added they talked to the homeowner’s tonight about scraping and destroying all the egg masses they can find over the next seven months. However, she noted they will still qualify for the program if they remove the egg masses. She restated the field work for the egg masses and the maps done on USGS Quadrangle Maps of the spray area must be submitted to her office by December 15, 1997. She added they have training sessions during the fall and noted that Mr. Pargoff has attended them to learn techniques involved in the field work. Ms. Lenchek advised they are not going to bid it out this year because they bid the project for three years and they already know who their applicator is. However, they will not provide a price until they determine the county wide acreage, but noted the greater the acreage, the less the price will be. Ms. Lenchek knows that the county will most likely get the least expensive price in this program, but the contractor has agreed to lower the price if the cities are willing to contract them privately for the acreage that might not qualify for the spray program.

Mayor McLallen asked for an explanation about the environmental impact. Ms. Lenchek replied the spraying is an aerial application by helicopter at treetop level. She advised the spray is Bacillus thuringienis, which is a naturally occurring bacterium and is found in the soil, but caterpillars eat leaves and not soil. Further, the caterpillars need to ingest it and it is only effective when the caterpillars are very small. She explained once the caterpillars get to be noticeable, it is too late to use the B.T. Ms. Lenchek advised it is the best pesticide because it does not kill non-target insects, it does not affect animals or humans and is 60-70% effective.

Councilman Schmid asked when did the city become aware of the problem and when was the county notified of the problem. Mr. Pargoff replied they discovered the problem last year and they were unable to find the requisite number of egg masses as required by the Department of Agriculture. Mr. Pargoff advised they found egg mass counts skyrocketing on several properties in the area of Nine Mile and Beck, but they were not spread out through the whole area where they could locate them.

Councilman Schmid asked if they submitted a report to the appropriate agencies. Mr. Pargoff repeated he could not find the required egg mass counts to submit a proper report.

Councilman Schmid asked if there were any recommendation made to contract privately. Mr. Pargoff replied that he did not make that recommendation. Councilman Schmid believes this is a good learning experience.

Ms. Lenchek added that they need to target where the egg masses are with the new count. She does not believe it will be difficult for this area because they had a massive problem. She further added that they really need the homeowner’s help in targeting all the egg masses and noted that the homeowner’s that are present to night are willing to help. Consequently, she believes it will be more successful.

Councilwoman Mutch believes this matter needs to be discussed as a scheduled part of Council’s agenda where they can have a more organized presentation so they can get a better idea of what already happened and what normally happens. She added that she believes there is a tremendous need for public education for those who do not yet have this problem. Councilwoman Mutch believes the city also needs essential information in terms of alternatives because money is going to be at the heart of this.

Ms. Lenchek advised that they can provide historic costs. She advised it was $22.00 per acre for this year. However, she added Oakland County bills half price for residential areas because the federal government will pay the other half. However, she added Oakland County adds an administrative fee for the program office for approximately $10.00 per acre. Mrs. Lenchek noted it is too late to spray for 1997 and that this is the prime time for the homeowners to destroy their egg masses. Ms. Lenchek advised they typically contact areas in December if they qualify and give them a month and a half to sign it. After they sign the agreement, the county contacts the contractor to advise them of the acreage and the contractor quotes the county a price at that time.

Mayor ProTem Crawford asked whether there is any literature or a video available for the public. Ms. Lenchek advised they have homeowner guides and are certain they already have some. She added that the library may have the video, "Living with Gypsy Moths in Michigan."

Mark McManus advised he owns property in the affected area and believes Council should look at some historical data from Mt. Pleasant in Isabella County approximately six years ago. Mr. McManus reported they hesitated to attempt eradicating this problem and now, the moths have completely devastated that county. Further, while they are discussing costs, Mr. McManus would spend $600 or $700 to spray his property himself. Mr. McManus reported there is currently a small infestation on his property, but he wants to stop it and he thinks it is criminal that the city has not yet taken action on the other infested areas. Mr. McManus believes the city should permit the homeowner’s to take advantage of the pricing that the county is offering and then take their count to decide if they qualify for the program. Secondly, he recommended that the city contact their peers in the Mt. Pleasant area so they can understand how devastating this problem is.

Councilman Schmid believes Council has to have knowledge to know what to act on. He wants to find out why this infestation was not caught sooner.

Councilman Mitzel understands the motion is to initiate the 1998 spraying program and that they would make an appropriation after they determine the acreage.

Councilwoman Mutch asked if a city standard will be set after they qualify. Councilman Clark replied they will first qualify in terms of what areas would qualify in the county spraying program. He further explained if there are other areas that evidence an infestation, but do not meet the egg mass count, the city will go to the same contractor to spray these areas. Councilman Clark believes they should address this issue before it becomes a major problem.

Councilwoman Mutch asked if he is asking the city to establish a standard or is he saying if there is any evidence of gypsy moths, that a property will qualify. Councilman Clark believes that will depend upon Mr. Pargoff who will provide the information.

Councilwoman Mutch understands that the city forester will then establish the standard and consequently, there will then be a city standard that may or may not be the same as the county standard. Further, if an area qualifies to the city established standard, then the City of Novi is taking on the responsibility of providing that protection. Councilman Clark agreed.

Councilwoman Mutch agrees with almost everything that they have said. However, she also agrees the problem is one that is greater than what they can address at their level. She also believes there are serious budgetary implications and wants to be certain about what kind of commitment they are making. She reminded Council that Mr. McManus thinks it is criminal that the city did not do anything until this point and she guarantees that if the city makes a blanket commitment for preventive spraying, there better be some responsibility for the identification of gypsy moth infestation wherever there is any sign of it or a resident will sue the city if they see the damage after the fact. Councilwoman Mutch believes they need to set further standards.

Councilman Clark stated they are not setting standards tonight. He explained Mr. Pargoff is going to investigate the problem and will provide a report to the county by next December. Further, Councilman Clark understands that the cost will be between $10.00-$22.00 per acre and he believes it is money well spent.

Councilwoman Mutch agrees, but it is not a matter of whether this is a good idea. She believes this can ultimately lead them to spraying the entire city and they would still have the problem of what are the neighboring communities doing because the infestation does progress. Further, she believes this may be a problem that needs a more comprehensive solution than what they can develop tonight. She repeated she is concerned about the budgetary implications and the legal commitment of the city when they make blanket standards.

Mayor McLallen believes Councilman Clark’s proposal is merely to gather the information so that they can meet the application criteria for next year. Further, in tandem with that, the motion will begin an education and review process for the rest of the city. She added that the motion is not attaching any dollar commitments from the city at this time. She believes he is simply saying that they should not lose this opportunity.

Councilman Clark added he believes the residents should know that the city is committed to doing something about this issue. He also stated that he agrees with Councilman Schmid’s comments and that until he received his packet, he was not aware of the problem.

Councilman Kramer believes there are two elements involved. He explained one is the county program and he believes they are all in support of participating in that program. He also believes there was discussion about other homeowners that are concerned and may not qualify. He suggested that they take their names as they gather information in case they want the city to contract the contractor on their behalf. Councilman Kramer believes the city needs to first conduct their study and that they need to compile a list of other interested landowners that do not meet the county’s criteria.

Mayor ProTem Crawford understands that the motion is addressing the area that will no doubt qualify for the county program and therefore, he believes they are making a financial commitment. Further, he understands that the forester will come back with a recommendation and then Council will decide whether a certain area needs to be sprayed. He added there is no dollar figure added to areas that do not qualify. Councilman Clark agreed.

Councilman Mitzel noted he has periodically seen updates about the gypsy moth monitoring program from Mr. Pargoff in the packet and added until now, they have not qualified for any official program.

Mayor McLallen suggested that letters be sent to homeowners’ associations regarding this situation.

AUDIENCE PARTICIPATION - None

BREAK - 9:13 P.M. until 9:30 P.M.

MATTERS FOR COUNCIL ACTION - Part II

4. Adoption of Resolution, Re: Approval of Proposed Huron-Rouge Sewer Rate Increase

Les Gibson advised they have provided Council with a packet of information and added there are a few items about which he would like to comment on. Mr. Gibson advised that they classify the water and sewer system as an enterprise fund and they intend it to operate as a business. Mr. Gibson added water and sewer is considered "big" business. Further, the buildings run approximately $7M per year, they have approximately 10,000 customers and it requires ten employees to service the system. Mr. Gibson advised they have a full time manager for the first time this year and in retrospect, he believes it is long overdue. Before this year, Mr. Gibson advised the Director of Public Works also managed the water and sewer in addition to the drains, streets and so forth.

Mr. Gibson reported the system has a fairly complex customer base and there are currently two sewer systems serving the city. He stated the Huron-Rouge System serves the southern portion of the city and the Walled Lake System services the northern portion. Mr. Gibson advised for billing purposes, the system uses a mix of consumption and residential units. He added the Walled Lake System uses the residential equivalencies exclusively while the Huron-Rouge System uses metered water whenever that is available.

For billing purposes, Mr. Gibson advised they back into a residential equivalent unit and that a typical resident uses 36,800 gallons of water per quarter. Further, there is a conversion table provided by Oakland County where they have non-residential users (i.e., car washes) and therefore, the customer base is a mix. He explained they have some customers that have water only, they have some customers that have water and Huron-Rouge sewer, they have some customers that have water and Walled Lake sewer, they have Huron-Rouge sewer customers only, and they have Walled Lake sewer customers only.

Mr. Gibson reported in compiling the information that for the first time customers have started to conserve their water usage and noted usage is down by 5% when compared to last year. He added in the three previous years water usage was growing at a rate greater than 5% so it is really a 10% swing because they would have anticipated a 5% increase.

Except for the Walled Lake System, Mr. Gibson reported their wholesale cost has increased slightly. He added the wholesale cost for the Walled Lake System has remained constant and that the Huron-Rouge sewer was last increased in 1992. Since then, inflation and cost for a growing system have impacted the cost and he reported the total cost for the entire operation for the City of Novi is approximately 25% of their wholesaling cost. Further, he advised the quarterly charges do not include any factors for depreciation in their debt service. He reported there is a connection charge that pays for the pipe and the related debt service when customers initially connect to the system. In lieu of depreciation, he reported that must be reflected from an accounting standpoint, but noted it is a non-cash item. Mr. Gibson added they do not consider depreciation above $1.4M in additional expenses and that they substitute $94,000 just to generate some working capital to replace the trucks and some minor equipment.

Mr. Gibson reported if they approve the rate increases, the cost for a gallon of water would be one fifth of one cent or five gallons of water for one cent. Mr. Gibson added the cost of removing and treating that water is about half that amount. Mr. Gibson reported they compared this with neighboring communities and advised, other than Farmington Hills, Novi is quite a bit lower than the other communities.

Councilwoman Mutch believes their water rate is based on cost of water to the city and delivery to the user and asked if cities have any measure of control in terms of knowing how efficient and fiscally responsible the City of Detroit is. Mr. Kriewall replied Novi sued the Detroit Water Board approximately eight years ago to challenge their rate making formula because it is driven by a distance and elevation factor. In other words, they would bill premium pumping charges the further away a community is from Detroit and on the elevation of the community. Their theory is that they have to pump harder to move the water uphill to service their area. Mr. Kriewall reported Detroit prevailed in terms of the lawsuit. He explained the methodology to set rates is a nationwide approach sanctioned by the American Waterworks Association and Detroit was able to defend the basis of their rate making based upon the historical development of this system throughout the United States. Mr. Kriewall noted Novi is the community that is the furthest to the northwest in the Detroit system and they also have the highest elevation to which Detroit has to pump the water. Mr. Kriewall believes there is no point in suing them again because he believes they would prevail. Mr. Kriewall added that George Kuhn has threatened for years to take over the Detroit system and make it a regional water authority and that there has been much legislation introduced in Lansing to attempt such an end. However, the problem is the buy-out price and that would probably not be cost effective.

Councilwoman Mutch noted Novi does not use a similar formula and that they treat every user the same. Councilwoman Mutch asked whether Novi has any influence or oversight over the Detroit Water Board. She explained that Detroit residents would have no incentive to make the department more efficient as long as they are getting the lower rates. However, on the other hand, Novi has every incentive to see them operate as efficiently as possible. Mr. Kriewall stated the only influence they have is that they have allowed suburban representation on the Detroit Water Board, but it is only a minority vote in terms of representing the suburbs. Further, the suburban representation is more often than not from the Southfield, Berkley area where there is a fairly large population and added they were able to negotiate a favorable rate for those areas as a water consortium. The contention is that Detroit permitted communities to purchase the water and re-pump it and store it in elevated tanks. Although, Detroit no longer permits that, he understands that position may change under Mayor Archer at which time they would see lower rates.

Councilwoman Mutch believes they published the metropolitan water rates in one of the Detroit newspapers and she recalled they were charging Novi the higher rates, but added they also had the lowest mark up to the customer in terms of their cost-effective delivery. Mr. Kriewall advised that is still the case in Novi and they intend to keep that margin.

Councilman Kramer noted the water purchase increased 4%, but added that the water bill will increase by 10% and asked if the difference is because of an increase in the city’s costs. Councilman Kramer asked if the costs are unique to the water supply side of the equation and not the sewer treatment side. Mr. Gibson agreed it has less of an impact on the sewer side. Mr. Gibson added the increase is primarily the indirect cost item, $561,000. He explained they have had contract settlements and for the first time, they are going from a part time manager to a full time manager.

Councilman Kramer asked if the indirect costs are an annual ongoing cost. Mr. Gibson replied this is the annual budget and added the decreased usage has also contributed to the increase. He explained the indirect costs are primarily fixed costs and if they cannot spread them over more of a billing consumption, it drives the per unit cost up. Mr. Gibson referred to the upper left corner of the schedule under the direct cost and advised that those numbers are purchase numbers. He explained those figures are what they are going to pay for processing.

Councilman Kramer asked if the $1.6M is the cost for purchasing water per the schedule. Mr. Gibson replied the $1.6M is the purchase in gallons that the city will be making and it is down 5% from last year. Mr. Gibson restated that contributes to it, but the biggest share of it is that the city’s costs are increasing.

Councilman Schmid asked what do they attribute the decrease in water to. Mr. Gibson replied it seems to be an across the city and across the calendar decrease.

Mr. Kriewall added it also relates to the steady rain they have received over the last couple of years and consequently, the consumption is down.

Councilman Schmid asked when did they last issue a raise to the city for administrative costs. Mr. Gibson replied they slightly raised the cost last year and he does not have the number before him.

Councilman Schmid asked if these increases will stop. Mr. Gibson believes it will level off and explained that the fixed costs are in increments.

Councilman Schmid would like to hold the costs down.

Councilman Mitzel asked what is the system capacity for water. Mr. Gibson does not have that number before him.

Nays: Mitzel

5. Adoption of Resolution, Re: Approval of Proposed Novi-Walled Lake Sewer System Sewer Rate Increase

Councilman Mitzel does not support these motions because he is concerned about the way the projections are done. He explained he is not totally convinced that they need to increase them to the extent they are proposed.

Nays: Mitzel

6. Adoption of Resolution, Re: Approval of Proposed Water Rate Increase

Mayor McLallen advised the resolution incorrectly states the increase will be for all bills rendered after August 1, 1996 and should instead read, August 1, 1997.

7. Approval of Ordinance No. 97-18, Zoning Ordinance Update - I Reading

Mayor McLallen asked Ms. Lemke to respond to the berm issue raised during Audience Participation.

Ms. Lemke believes the question was about the four foot crests under Section 1905 on Page 112 of the Comparison Draft. Ms. Lemke believes four feet is usually enough after the stagger shrubs, but she agreed they could increase it to six feet. However, she would not recommend more than that because she believes eight to ten feet is too wide an area for a berm.

Councilman Kramer asked if the width at the crest make any difference to the viability of the material that is planted. Ms. Lemke replied no because they usually do not plant on the top of the berm. She explained they usually plant on the sides.

Councilman Kramer then asked what would the benefit be to increase the width at the crest. Ms. Lemke replied it would permit them to plant a little bit more toward the top of the berm although the predominant planting is not at the top. Ms. Lemke believes a six foot crest with a ten foot berm would be adequate.

CM-97-08-264: Moved by Mitzel, Seconded by Clark, CARRIED UNANIMOUSLY: To approve the first reading of Ordinance No. 97-18 (Zoning Ordinance Update) with an amendment to Section 1905 in accordance with Linda Lemke’s recommendation regarding berm requirements, as amended to include density credits for cluster housing and with further review of cellular antennas for the second reading

COUNCIL DISCUSSION

Councilman Mitzel asked if they will update the proposed zoning map to reflect tonight’s rezoning. Mr. Fried replied it would.

Councilwoman Mutch asked if they are changing it to six feet where it currently says four and ten.

Mr. Rogers referred to Page 163 under cluster housing and advised they found that when they remove the regulated wetlands under two acres that it really does not make any difference. He referred to Abbey Hills as a good example where they built 31 units, but under the gross density allowable under R-1 they could have built 45 units. He explained if they remove the 9.34 acres of wetlands, the net density would have been 30 units per acre for the cluster development and not much different from what was actually built. Mr. Rogers explained there was quite a bit of regulated upland woodland area that constricted the site and they were unable to max out. Further, because the developer wanted to construct detached clusters, they could only construct 31 units and still maintain the ten foot standard between the structures. Mr. Rogers brought this to Council’s attention because they address net site area to exclude regulated wetlands in all the options except the cluster option. Mr. Rogers recommends that they also add this to the cluster option where appropriate.

Councilman Mitzel believes there were several sections within the zoning ordinance that they removed for further study. He reported one was the cluster section, another was the architectural review and the last was cellular towers. Councilman Mitzel would like to amend his motion to include changing the cluster option so that it is consistent with the other options.

Mayor McLallen advised they have accepted the friendly amendment.

Kenneth Singer advised that he has eight acres with two to three acres of wetlands and he does not understand his property taxes. He explained the city has taxed him for the entire eight acres for the past nine years and that it is unfair that they should tax a property owner for the wetland areas.

Mr. Fried suggested that the property owner should first discuss the matter with the city assessor to determine if he is assessing him the same for uplands as he is for wetlands. Mr. Fried advised if the assessor does not make the necessary correction, Mr. Singer should then appear before the Board of Review.

Councilman Schmid asked Mr. Rogers to comment on his letter regarding cellular antennas. Mr. Rogers believes cellular antennas are a very important addition to the ordinance and noted Novi currently permits them only in I-1 and I-2 Districts. However, Mr. Rogers believes the proposed zoning ordinance will now permit them in RC and the office districts. In addition, he understands that the Telecommunications Act of 1996 will permit a provider to build out a grid in a residentially zoned area, but added that is a special exception that can be granted only with proof there is no other possible site to locate their tower.

Councilman Schmid believes they currently restrict antennas to I-1 and I-2, but under the new ordinance, towers are permitted in other zoning districts if they meet the criteria listed in the ordinance. Mr. Rogers agreed and added that except Dearborn, other nearby cities permit towers in their downtown districts.

Councilman Schmid asked why are they being so liberal. Mr. Rogers replied because providers service the public, cities cannot exclude the antennas. He explained once a provider establishes a grid and can mathematically demonstrate that there is a dead spot in the grid and the only way to serve that spot is to put something in a RA zone, the FCC can preempt Novi’s regulations because local ordinances cannot exclude completing the grid.

Mr. Fried is familiar with the act, but he is not familiar with its detail and cannot comment at this time.

Mr. Rogers stated the city can limit the number of districts, but they cannot totally exclude them.

Councilman Schmid asked why don’t they have an ordinance to restrict towers in only I-1 and I-2 and then let the provider make an exception so the city can control where they go. Mr. Rogers believes they could do that, but added they will still have to come before Council for Special Land Use review. Further, Mr. Rogers reported the Implementation Committee worked on this particular section for a year and they all felt it was reasonable to open cellular antennas to these few additional districts with an exception rule.

Councilman Schmid would like to amend the motion to restrict cellular antennas to I-1 and I-2 Districts with the inclusion of the exception clauses as they are currently written in the new zoning ordinance. Councilman Clark would agree to support the amendment.

Mr. Rogers believes the section they are addressing is on Page 237 of the comparison draft, "The City Council may permit a communication antenna or pole in other zoning districts not listed above or within 300 feet of a residentially-zoned district, or may otherwise vary the standards contained herein, when it finds that such restrictions would prohibit or have the effect of prohibiting provision of personal wireless services so as to contravene the provisions of 47 U.S.C. § 332 (c)(7)(B)(i). The relief granted shall be the minimum necessary to eliminate such an effect." Mr. Rogers believes this language came directly from the Act. He further noted I-1, I-2, OS-1, OS-2, OSC, B-3 and RC are listed above that language as districts that permit cellular antennas.

Mayor McLallen asked if the amendment is for Section 2508, subsection A. Although Councilman Schmid does not want to exclude anything, his intention is not to increase the districts that they presently have. Councilman Schmid wants to permit the opportunity that they can go into any one of the districts, but added the petitioner would have to come before Council with their proposal. He is concerned that they can construct a tower in the RC District if they meet the ordinance’s criteria or if they can make a case that they need to complete their grid. Councilman Schmid is looking for some control.

Mayor ProTem Crawford noted there is a difference between an antenna and a tower, and asked if there is anything in the ordinance that would allow an antenna on an existing structure. Mr. Rogers replied the antenna on the Edison corridor site is a new use for that particular property and will be considered under Special Land Use. Mr. Rogers understands that the question is whether those could be exempted.

Mayor ProTem Crawford believes a compromise may be to allow an antenna in these areas on an existing structure. Further, he reminded Council the FCC is going to overrule a Council decision if the provider cannot provide the service.

Although Councilman Schmid agreed, this amendment would still provide some control.

Mayor ProTem Crawford asked if they could offer another alternative at the second reading in that they would allow an antenna on an existing structure in the listed areas. Mayor ProTem Crawford explained a provider must then come back before Council to make certain they really need a tower in that area for any new tower.

Mr. Rogers advised the seven providers are suing the FCC to exempt any local regulation.

Mayor McLallen stated they will refine the cell tower language under Section 2508 for the second reading. However, for the first reading they have added density credits in cluster housing, they have revised the berm crest and they will review and bring cellular antennas for a second reading.

Nays: None

Councilman Kramer noted there is a letter attached from Brandon Rogers in regard to architectural review of automobile service station development indicating that the Planning Commission is studying the Master Plan for auto service stations. Councilman Kramer stated the letter was addressed to the City Clerk and asked if it requires Council action. Mr. Rogers replied they included it as a communication in response to Council’s request.