CALL TO ORDER: Mayor McLallen called the meeting to order at 7:37 p.m.

ROLL CALL: Mayor McLallen, Mayor ProTem Crawford, Council Members DeRoche, Kramer, Lorenzo, Mutch, Schmid

Mayor McLallen wanted to start with discussion on the major items. She stated she acquired information regarding Appointed Officials and City Administrative compensation and would like to put it together for Council and the City Manager. She requested that these items be removed from the agenda to be addressed on May 3, 1999. Tonight’s budget could be left to reflect 3% for appoint officials increase as per the union. The line item then will have a dollar amount.

Mayor McLallen stated she kept a running total of issues that Council brought up at previous sessions including solutions or comments. These items are outside what the Administration put in. The biggest item is Public Safety employment.

Mr. Kriewall indicated that the Police and Fire Fund is a specially voted Police and Fire Millage, which started several years ago. Mr. Gibson will present the numbers.

Mr. Gibson said the first item was the property tax millage. We are levying as much as possible. Over the years the increases in the cost of the personnel has exceeded the growth in the property tax levy revenues. The General Fund is subsidizing the lack of funds but will not be able to for long. Levy the maximum millage allowed under the Headley Amendments, add the State Shared Revenues, about $15,000, the anticipated interest on this is about $48,000. All of the Fund Balance would be used this year because of the purchase of equipment for $450,000 to replace Engine #1. The full amount of the expenditures will be transferred over to the General Fund.

Mayor McLallen asked if the General Fund transferred $183,000 or $3,000,058?

Mr. Gibson stated it transferred $3,000,058.

Mayor McLallen asked if it comes out of the General Fund.

Mr. Gibson said it comes out of the levied special millage. That generates a total revenue of $3,000,058 which is transferred to General Fund to cover the costs.

Member Schmid asked what the appropriation of Fund Balance of $183,000 was?

Mr. Gibson said it is the amount kept in Equipment Reserve. The reserve has been building over the years to replace equipment. The equipment is recycled. This year we are depleting that reserve and will start replenishing it again next year. The order for the truck, is being placed but will not be received this year. When it is received next year, it will be in that budget. We will use a little more of the property tax revenue to cover that cost.

Mr. Klaver asked if the original schedule for equipment had been updated?

Mr. Gibson stated it had been updated and revised.

Mayor McLallen said in the Parks and Rec. millage we are continually told that that millage failed to meet the needs and required a Headley Override to increase the millage.

Mr. Kriewall said that is correct. Mayor McLallen asked what is the status of this millage? She asked if this has suffered the same fate.

Mr. Kriewall advised Parks and Recreation .5 mill has eroded down to just under .4 mill or about twenty percent has been lost.

Mayor McLallen asked why this had never been discussed?

Mr. Gibson said Police and Fire is authorized at 1.8 mills and that has been rolled back to 1.47 mills. Mayor McLallen asked if that was the same percentage of diminishment. Mr. Gibson said it probably was not the same because the millage was passed after Headley.

Member Lorenzo asked what the procedure for a Headley over ride was?

Mr. Kriewall stated there has to be a question on the ballot to over ride the Headley millage. He suggested going back to the half mill.

Mayor McLallen stated it would not affect this year’s budget. Member Lorenzo asked when it had to be on the ballot. Mr. Kriewall said it would have to be on the ballot in November to qualify for the 2000-2001 budget.

Mayor McLallen asked if it would still require an appropriated Fund Balance is needed to make the budget work? Mr. Gibson said it would.

Mr. Gibson commented that one good size debt is dropping off the 1992 Refunding Debt. This was a refinancing of the Civic Center bond and two road bonds. The refinancing was done because the interest rates came down.

Mayor McLallen asked if bonds for the D.P.W. at $103,000 and the Refunding at $695,000, fall off in 2000 and also Act 175? Mr. Gibson said yes but the Police Building will just be kicking in.

Mayor McLallen stated that the accumulative amount those millages represent is $160,000. Mr. Gibson agreed.

Member Lorenzo asked what Act 175 is. Mr. Gibson said it was a way of issuing bonds that can be paid for out of the gasoline tax. She asked what bonds these would be? Mr. Gibson said Crescent Blvd. and half of Main Street are two of them.

Mayor McLallen asked what was being proposed for a potential road bond? Mr. Kriewall replied it would be in the neighborhood of 20-25 mills.

Mayor McLallen asked if all the C.I.P.’s were in the documents she had? Mr. Gibson said yes. He stated they were suggesting that rather than budget the capital as was structured so far in the General Fund, to make a transfer out of the General Fund in the exact amount equal to the Capital over to this Capital Fund. Then the City will account for all the capital in this particular fund. Not only the General Fund Capital but also the Parks and Recreation Capital.

Mayor McLallen said Council had looked at the Capital Fund and wanted to know if this could be a managed fund that could be invested. Or does this money have to be ready for these debts because these are identified expenditures for this year.

Mr. Gibson said the way the budget is being put together it is basically in theory what we spend. Mayor McLallen said then this couldn’t be considered an investment fund that we can make money on.

Mr. Gibson stated it could be invested until these items need to be purchased.

Mayor McLallen asked if that is different then what is being done now? In previous years there was a true rainy day fund. Here we are discussing a few interest dollars. Mr. Gibson said that was correct.

Mayor McLallen asked if this fund addresses the underlying unexpected expenses? Previous Councils had discussed a more aggressive savings account for those unexpected expenses.

Member Schmid commented that was discussed the last couple years. He said what happened here is every dime that came into the city was spent this year. He suggested reducing some of the budget items and to make a Capital Fund.

Mayor McLallen stated that would be done tonight. The underlying goal of the City is to create a fund that doesn’t put the city at risk. She asked if municipalities could put money in a more aggressive type of investment?

Mr. Gibson said money could be put into longer term more aggressive investments.

Mayor McLallen asked Mr. Kriewall what he wanted to do with what was on the table.

Mr. Kriewall replied everything was left in that was presented. Through discussion with City Council there are a couple of items that could be removed. One is the police car video equipment at $38,550 and the police video arraignment equipment. The rest of the items were needed and felt it was fortunate to be able to acquire most of the equipment which had been deferred for a number of years.

Mr.Gibson commented that before making a capital investment we are supposed to attempt to identify how it’s going to affect the operating budgets.

Mayor McLallen stated that in addition to the $2.7 million requested, those things will generate an additional $14,000 in the operating costs. Mr. Gibson agreed.

Member Lorenzo asked if no additional police personnel were added would the two new vehicles be removed? Mr. Gibson said that is correct.

Member DeRoche asked about the chipper truck. Mr. Kriewall commented it was for the Forester and was something that he had removed about four years ago. Mr. Nowicki has been trying to get it for four years and we are finally able to leave it in. Mr. Kriewall stated that a lot of these items have been deferred for along time.

Mayor McLallen said we are still having discussions regarding lap top computers for Council, Finance did not have any major problems, and the election equipment is not an issue. The parking lot replacement everyone was still in the budget, office reconfiguration is $9,000. The Fuerst building improvement can be reduced.

Member Lorenzo asked why trees were in the budget as a capital when we have a Street Tree Fund. Is this an alignment or are we spending General Fund money for trees.

Mr. Gibson said we are spending General Fund money for trees. Mr. Nowicki said in the Street Tree Fund, all but $10,000 was allocated. That money is identified for specific plantings.

Member Schmid questioned the Parks and Recreation tractor and mower. Mr. Nowicki stated it was for the Forester to maintain and supervise the mowing of the right-of-ways. Member Schmid said there was also a Parks and Recreation truck with a plow. He asked if each department had their own snow plow.

Mr. Kriewall said Parks and Recreation helps on the major snow events by plowing some of their facilities, city hall, etc. It is cost effective. The Water and Sewer Department are also used. The City uses as many debts as possible. In a major storm that requires two or three shifts to clear snow. Water and Sewer people, D.P.W. and Parks and Recreation people all work the equipment.

Mr. Nowicki stated Parks and Recreation also plow the Fire Station, Police Station, the Civic Center and the park areas. Mr. Kriewall said there is a small snow blower in the Police Department budget.

Mr. Klaver said Parks and Recreation does not clear service sidewalks. The snow blower is needed for that purpose.

Mayor McLallen asked why are these being parceled out in department budgets rather than having all city maintenance done out of a single city department?

Mr. Kriewall said that was because we were using mechanics to do sidewalks and parking lot at the Police Department when it's busy. Parks and Recreation does the Civic Center.

Mayor McLallen stated she was not pleased the Forester is the supervisor for island mowing. Member Schmid asked if Mr. Pargoff is in charge of all mowing in the City? Mr. Nowicki stated he is a supervisor and has supervision over teamster employees.

Mayor McLallen stated the sign in front of the building needed work.

Member Kramer said video equipment was needed to dub tapes at City Hall rather than going to Troy and back.

Member DeRoche asked why the tapes couldn’t be sent United Parcel? A comment was made that it would take to long.

Member Mutch asked if the City was in a position to say no to requests for tapes? Member Deroche said no but we can appropriately charge them.

Mr. Gibson stated the request is for $4,500 for video dubbing equipment and $4,500 for a camera.

Mayor McLallen said we are now into the General Administration regarding office workspace, a computer for the new grant coordinator, desks and etc.

Mayor McLallen asked what the budgeted amount would buy? Mr. Gibson replied it would be for partitioning and a desk. Mayor McLallen commented there was no controversy over these items.

Member Schmid questioned the $70,000 telephone system. Mr. Kriewall said this was the original phone system. Mr. Klaver added that it was installed prior to moving into this building. Member Schmid asked what the proposed system would do that the one we have would not? Mr. Klaver said the current system loses messages and many other problems exist.

Mr. Gibson said the voice mail does not work anymore and the 988 system is becoming obsolete. It may not be Y2K ready.

Member Lorenzo asked what the life expectancy was of the new system. Mr. Kriewall advised her it was ten years.

Member DeRoche said the difference between the old system and the new system is that the new phones ones are exactly like a computer. The old phone ones are just a telephone. Now there would be a server base system that could be upgraded and repaired easier.

Member Crawford asked if the new system would serve just City Hall or also the Police and Fire Departments? Mr. Kriewall said the new service would service everyone.

Mayor McLallen called for discussion regarding the paper shredder for the Police Department.

Member Crawford asked if there was something special about the shredder? He thought $1,600 was a lot of money for a paper shredder. Mayor McLallen decided to hold this item until there was more information.

Mayor McLallen asked for discussion regarding the desktop projector request. Mr. Klaver said Chief Shaeffer needed it for training and presentations in the Police Department.

Member Kramer said if the City is going to have a projector, and it is expensive, then it should be shared and kept available for the entire City.

Mayor McLallen asked for discussion regarding car videos. She said they have a very hefty price tag and is this the year to purchase these. There would be 18 components in the system. To purchase the system it would be an all or nothing for the price that was quoted. Mr. Kriewall said for six components it was $38,500.

Mayor McLallen stated the items still up for discussion were:

Council Lap Top Computers $22,400

Tree Issue $10,000

Information Sign $38,000

Video Equipment $ 9,000

Police Cameras (6) $38,000

Mayor Pro Tem Crawford asked if the video cameras had to be permanently mounted into the police cars? Mr. Kriewall said they did and didn’t think there was anything portable available. It was decided more information was needed regarding longevity, maintenance etc. of the devices.

Member Schmid questioned Mr. Nowicki regarding the aerial lift and chipper truck. He felt the equipment was too heavy for two people to operate. Mr. Nowicki advised they have two people now and that the City does have a chipper truck but needs an aerial lift dump box. Member Schmid asked if we had an aerial lift now. Mr. Nowicki said we did not. When one is needed the job will be contracted out.

Mayor Pro Tem Crawford commented the Aerial could be available for other things like putting up banners, flags and etc.

Mayor McLallen now requested discussion on two new vehicles for the four new hires. The issue of new hires is still under discussion. It appears everyone is not in favor of the two sonic units being requested.

Member Lorenzo asked Mr. Kriewall if Council is to assume a Sergeant will be added?

Mr. Kriewall thought that was the assumption but City Council had not made any changes or recommendations. He said right now there are no additional Sergeants in the budget.

Mayor McLallen brought up discussion on lap tops computers.

Mr. Gibson said three lap top computers were requested. That number was cut to one for administrative people.

Member DeRoche thought the lap top computers were for the new hire police cars. Member Mutch said it was three lap top computers for $15,000. $10,000 was taken out. They wanted three for $15,000 and took two out which left one for $5,000.

Mr. Gibson said the lap top computer would be for the Deputy Chief to use in the office and take home to work out of office. It is heavily loaded with software.

Mayor McLallen turned discussion to the Automatic Vehicle Locator. Mr. Kriewall commented it was a good tool to have in an emergency.

Mayor Pro Tem Crawford asked if this system was self-sufficient or would we have to subscribe to a service and pay a monthly rental. Mr. Kriewall thought it would probably run off a GPS system.

Mayor McLallen commented that there were a lot of questions regarding the Automatic Vehicle Locator. Council would come back to it later in the budget discussions.

The next item was Video Arraignment. Council said this item is removed from the budget. Oakland County is not ready to receive transmissions at this time.

Mayor McLallen said the next Department to be considered was Fire. She asked what the Hurst Tool was and was advised that it was the "Jaws of Life". Member Mutch asked if the three respirators were replacements? Chief Lenaghan said they currently carried four respirators on each engine and they are increasing the numbers of respirators at each station.

Member Schmid asked what thermal images are. Chief Lenaghan said they were for surveillance of a smoked filled room to locate a body or hot spots. The Chief hoped to purchase one per year until there is one per station.

Member Schmid said the Fire Department budget has a 4 X 4 truck replacement too. Chief Lenaghan said the truck they have now is a 1979 vehicle and is not reliable.

Chief Lenaghan said the bids have come back on the InfraRed Scanner for $16,500. He said there was $20,000 from this year’s budget to buy the first one. He thought another could be bought for $16,500 and if the seller agreed to let the purchase be made in 90 days, out of the new budget. He felt there was room to barter.

Mayor McLallen brought up the optical scan and Mr. Gibson said they needed a scanning station for the equipment to set on. She also said they are requesting a printer and a lot of software.

Mr. Gibson said the software would tie the Building Department records to the G.I.S. system.

Mr. Nowicki advised Council that there are a couple of upgrades needed. This is an arch view enhancement that was not purchased when the basic Arch View Program was purchased. We are asking for the ability for the spatial type program tying three dimensional objects into the G.I.S. system.

Mayor McLallen said diagnostic equipment is needed for detecting problems in the equipment. Also, a tornado siren is needed for the west side of the City. Mr. Nowicki said that an emergency trailer is needed. The trailer should be set up with lights, generator, sand bags, barricades, etc. in order to respond to an emergency situation quickly.

Mayor Pro Tem Crawford asked if this equipment would just sit in the trailer ready to go and would not be used on a day to day basis? Mr. Nowicki said yes and some of the equipment they already have.

Mr. Nowicki said they need a one ton pickup to use on small operations when it would not pay to bring the big trucks out. It was asked what a plate compactor was. Mr. Nowicki indicated that it is used to compact the material under sidewalks and catch basins.

Member Schmid asked what a Bobcat excavator was used for. Mr. Nowicki said primarily it would be used in storm sewer regional detention basin maintenance where we cannot get a large tractor and backhoe in the area. It is a small piece of equipment that will not tear up back yards.

Mayor McLallen asked if this could be funded out of the Drain Fund and Mr. Nowicki said he did not see why not.

Mayor Pro Tem Crawford asked if the printer requested by the department was different than others in the building and would we get a better deal if we bought five?

Mr. Klaver said that is generally how they are bid. Mr. Gibson said it depended on how they were used. This one fills specific needs of the Planning Department.

Mayor McLallen brought up the request for landscaping, fencing, sidewalks and parking lot lights at the Community Sports Park. She was advised the request also included restrooms. Discussion continued on the equipment needed by the department to maintain the parks.

Council Break 8:50 p.m. to 9:05 p.m.

Mayor McLallen said the next issue to be discussed is the four Police officers and three Fire Protection Officers. Fire Protection Officer would cost $41,559 for one officer and $124,675 for three officers for the first year.

Four new Police officers would cost $195,452 plus car, uniforms, etc. for the first year.

Mr. Schmid asked if the grant covered $160,000 what did the other $35,000 cover. Mr. Gibson said it would cover benefits. The grant is larger in the first year, but the balance would be recovered over the next two years.

Member Schmid asked how many officers we have? Mr. Klaver advised there were 57 sworn personnel. Eight of those are sergeants. Six sergeants on the road and two are the Administrative personnel.

Member DeRoche asked how many had been promoted this year to sergeant? Mr. Klaver said none.

Member Mutch asked if there would be a new sergeant for the sonic? Mr. Klaver said there was no proposed sergeant for sonic. If a sergeant is needed, one will be reassigned.

Mr. Klaver said the budget was proposed thinking there would be an additional sergeant and sonic car. The personnel fell off. The car might still be considered.

Mayor Pro Tem Crawford said reassigning a sergeant to sonic was before Council and Council said no. Mr. Klaver said it was a reassignment since the beginning but Council did not want to allocate resources for that program. It was never going to be an additional person.

Member Lorenzo said, to be clear, there’s no sergeant for sonic and there’s no sonic sergeant car.

Member Mutch said there is one proposed sonic car.

Mayor Pro Tem Crawford said it is out of the budget, but he thought there were three additional cars. There’s $24,000 in the budget. $16,500 is for a sergeant’s car and two more for $4000 each.

Member DeRoche said we did not expand the number of sergeants this past year. He thought it would be a big mistake if we did that prior to building up the road patrol.

Mr. Klaver said he agreed but six of those sergeants are road patrol sergeants. We’ve had the same staff level for three years now. Of the eight sergeants six are on the road patrol, one is a detective and one is an administrative sergeant.

Member DeRoche said that before we promote another officer to sergeant, we would want to hire another road patrol officer to replace him.

Mr. Klaver said there was some talk about creating two more sergeants for the road patrol. The additional sergeants might actually be a minimal cost because they would eliminate a lot of overtime that we have been experiencing as a result of shift shortages. Several years ago there was a recommendation from the Citizens Committee, that when there were shortages on the sergeants schedule, they would fill them with sergeants on an overtime basis. The cost of creating two more sergeants, whether new or upgraded, would dramatically bring the overtime down. Mr. Klaver said he thought Council should be looking at this in the future.

Member Schmid asked how could the sonic program be evaluated. It is a fairly expensive program and other communities have backed off of it.

Mr. Klaver said there was only one community that withdrew and they are talking about coming back in. If you look at those that do participate, such as Farmington Hills, they have added two more people.

Member Schmid asked what other communities were involved in the sonic program? Mr. Klaver said it was Farmington Hills, West Bloomfield and Novi.

Mr. Kriewall said West Bloomfield pulled out.

Mr. Klaver said Chief Shaeffer is most equipped to respond. He has said this is a problem that crosses borders. That is why he thinks this task force is particularly well equipped. That has been one of his justifications. Another being that it is just a very specialized type of unit.

Member Schmid asked if not a part of this program, what would the officers be doing?

Mr. Klaver said one would be used in the Detective Bureau and the other would be a Road Patrol Officer.

Mr. Kriewall commented that he thought it was a good program. They reviewed it quite extensively before getting into it. They thought it would pay some dividends in terms of drug busts. It is very difficult to perform drug busts with detectives and patrol officers that are in a town where everyone knows who they are. Mr. Kriewall said he was satisfied with the program but did not know if he would invest much more.

Mayor McLallen asked if $35,000 covered everything?

Mr. Gibson advised it did not cover vests, clothing, etc. The $35,000 covers salary and benefits.

Mayor Pro Tem Crawford said then there is also the supplement of $160,000 in grant money.

Member Mutch said the two new cars are $40,000, plus $35,000 for salary and benefits, and the cost of the equipment.

Member Mutch said Mr. Dan Davis requested a marketing specialist that was not in the budget. There was discussion on that position. It was suggested, if he wanted to eliminate a coordinator/marketing specialist and charge the responsibilities to the last three items, then a lesser position was suggested. He could come back and re-propose an additional staff member.

Mr. Kriewall commented to Mr. Davis said he is comfortable working with Lou Martin.

Member Mutch said there should be a person from the Parks and Recreation Department responsible for getting all the information that would go on the Web. This person would deliver the information to Mr. Martin as opposed to him having to figure it out. No one in Parks and Recreation has this responsibility now. Parks and Recreation is the biggest user and should be responsible for their information.

Mr. Kriewall stated Mr. Davis would repackage this item and bring it back next year. Member Mutch asked what would be done in the meantime? Mr. Davis says everybody is working to his/her max. Somebody has to do these new things. She deferred to Mr. Kriewall stating that this is not what Mr. Davis or Council said would be done.

Mayor McLallen stated the web site informational management is a highly intensified thing. Member Mutch agreed and said the whole point of the department having their own person, is they set their own priorities as to what is important to get on the web.

Mayor McLallen commented that we have created certain expectations for the Public Information Officer and it has become a catchall. We’ve tried to add more people and that position has become a special events video department; more than a true Public Relations Department. Now we are going to have web site management. She wondered if this was being realistic.

Mr. Kriewall stated that Mr. Martin had to be freed up with video assistance so he could do more public information.

Mayor McLallen stated that she was not convinced that the expenditures we spend in cable production and video resources are where monies should be spent. Regarding the Web site person, she would like someone who can truly be dedicated to the position and not sent on various errands.

Member Mutch agrees with the Mayor’s statements. We are developing unreasonable expectations. The same thing is happening with the Grants Coordinator position.

Member Schmid commented we are paying Mr. Kriewall’s salary to make recommendations and decisions, we need to stop micro managing.

Member Lorenzo stated she is not in favor of the Video Personnel, Special Services Coordinator, and the three Police Officers. She is in favor of the Deputy Fire Chief and three Fire Protection Officers. Member Lorenzo also thinks Novi needs to get more competitive with the Paid On Call Fire Personnel. She feels that there is a problem with the response from these people.

Member Mutch agrees with much of Member Lorenzo’s’ opinion about the Fire Department.

Discussion followed about the difference in wages of the surrounding communities.

Member Kramer said having a grant writer provides an important function. If a person is added, be it video or public relations, he feels strongly that this person not be scattered around to other departments. Mr. Davis is not on line to get a direct person, he needs to look and see how this will work with what he wants to accomplish this year with what is available. Member Kramer is not uncomfortable with this proposal.

Member DeRoche feels the video person makes a lot more sense to him because the work is already there rather than a Web Site or Public Relations person for Mr. Davis which is not absolutely necessary. Regarding the police officers, and all the investments that have been made by the Police Department over the past year, he does not see the need, even thought the money is there, to expand the department with four officers this year. With increased efficiencies, he feels, we will be just fine. To employ the additional officers may start a chain reaction that is perhaps a couple years premature. Regarding the Fire Protection Officers, he does not know if three is the magic number. Member DeRoche does support having a Deputy Fire Chief.

Member Mutch also supports the request for three Fire Protection Officers. Regarding the video person, she has spoken to Mr. Martin at length about the type of responsibilities this person would have. Mr. Martin said this person would do some video work, some hands on camera work, but primarily taking care of inventory, labeling, editing, filing, and classifying the videos already done.

Member Lorenzo asked what the salary range was for the video person.

Mr. Kriewall answered it was around $28,000 including benefits. This person would be working at SWOCC exclusively for the City of Novi.

Mr. Klaver said we have had meetings with Ms. Collins in terms of how this may work, we believe it is a very workable situation. We would be involved in making the selection, but the person would be on their payroll, under our direction.

Member Mutch stated it sounds like an extra pair of hands for Mr. Martin, but she doesn’t see a tremendous benefit as the position is described.

Member Schmid asked how SWOCC works with this position. They are going to hire this person for about $25,000; do the other communities pay SWOCC?

Mr. Kriewall responded this position is a contract position where we would fund the entire cost of the position including benefits. This position would be assigned to the City of Novi full time. The cost savings are in the benefits, they do not offer the same benefits as us. We do not have that type of a union classification.

Mr. Klaver said another advantage is that SWOCC has flexible hours, making it easier to staff evenings and weekends. If this position where in our Union, we would be dealing with overtime, restrictions, and schedule issues. Details have to be worked out yet this is just a proposal at this point in time.

Member Schmid asked if Mr. Klaver has any problem with how it sounds.

Mr. Klaver responded we are waiting to find out what Council does with the position, then we will contact Mr. Watson to make sure the concept is acceptable.

Member Schmid commented the Budget has him concerned when he sees an additional $2,000,000.00 over last year. The City is doing very well, it is growing and we are receiving additional monies from the added population. In his opinion, we are spending the money much to fast; everyone is receiving everything asked for. This is the first year Mr. Kriewall has left most everything in, which is his prerogative. He prefers that we would cut back the capital and start a capital fund, fund it each year, invest the money and if we continue to grow the way we are and generate dollars, give a tax rebate to the citizens of Novi. We do not have to spend every dollar that we make.

He understands we have put off purchasing many of these things. There are a lot of things on the capital side that have not been put off. There are ten new positions added, not including the four new Fire Protection Officers, that is fourteen people being added to the budget this year. The question is do we need ten new positions? His opinion is that most of the positions are necessary, with the exception of the Fire Protection Officers. He is not anti-Fire Department he has a great deal of respect for the Fire Chief. The City started out recommending a part time Fire Department. Years ago, Member Schmid was advised early on to make sure we do not have a full time department, they are extremely expensive. Mr. Kriewall distributed a Memo, after doing research, on how many people are on call in communities around us. If the figures are correct, it looks that we have as much or more people at every fire during the daytime hours than most other communities. During the daytime hours most other communities had less people responding. What he is suggesting, if we have fifteen people on duty during the day and get the job done, and add three to make eighteen responding to emergencies, why are that many needed if we are committed to a part time Fire Department. This gets very expensive year after year. He feels that we should stay committed to a paid on call. The fact that you need two people in a fire truck at one time is not a fact; you do not need two people in a truck at a time. We need to look at the tax payers money and how the City wants to develop as it relates to fire protection. He can not justify the additional three Fire Protection Officers.

Member Schmid is bothered that a lot of Police Officers have time to do a lot of funny things that they should not be doing instead of being on the streets working. You can look at incident after incident where it is obvious that they are not on patrol. He feels the efficiency should be looked at before we add more officers. He suggests that we look at how many officers will be needed when we are done building out. He believes the number will be very different than what the Federal number suggests. Member Schmid is very concerned with adding that many new personnel to the budget.

Mayor ProTem Crawford concurred with the Parks and Recreation person in conjunction with hiring the new video person and felt it would help alleviate some of the problems.

He is in full support of the Fire Protection Officers and knows there have been some incidents where there were not enough respondents during the day. He feels there are many things they do besides fighting fires. They do inspections, cutting grass, painting the station, etc. He said there have been times that we could not respond and we can’t afford to put ourselves in that situation.

As far as the additional Police Officers he has mixed feelings. He felt the real question is are we going to need two, three or four more officers in two, three or four more years. If the answer is yes, then he thought the grant funds should be taken advantage of this year.

Mr. Kriewall believes the answer is yes, we would need two to four more officers. He stated we were behind in ratio but he doesn’t necessarily believe in ratios. He feels we are falling behind and that is why the grant is a good thing. If the grant were not there he’d pass on the police officers.

Mayor Pro Tem Crawford stated if two or three police officers are needed over the next two or three years then we ought to take advantage of the grant.

Member Kramer would rather see the Information Technology person for Mr. Martin and contract with S.W.O.C.C. Regarding Fire, he supports the Deputy Chief but has concerns about the additional Fire Protection Officers. He feels there is a need to watch over the demographics and volunteerism. This year we will be building two new Fire Stations and a training facility, he wants to take a watch and see approach before hiring new Fire Protection Officers subject to that assessment. Member Kramer agrees that an analysis with neighboring cities is needed because of concerns where we should be going. If the new station training facility does not make a volunteer effort more attractive than maybe we should take it up. Bottom line for him on this issue is support for the Deputy and pass on the Fire Protection Officers.

On the Police side of things, he regrets having missed the demonstration about the laptops, but the bottom line is efficiency for the road patrol. He is not sure how this will improve the efficiency for the manpower. There is also the issue of the Grant temptation, this money seems available all of the time. Will the money be available forever? He suggests hiring two officers. He mentioned this was his "cop out!"

Mayor McLallen stated she has a lot of concerns about serious management issues within the Police Department that need to be improved from supervision through communication. She is always disappointed when they come to the request for more personnel, that the Chief does not have any annual statistics whether crime is going up or down, and where crime in the City is escalating. With the building renovations being done this year she feels this would be the year to take a breather. Mayor McLallen would like to see the entire Police Department come back tighter because Council is not being told there are any critical issues going on. She does not support the police grant for more personnel this year.

Mayor McLallen does not have any problem with the Fire Protection Officers requested. She feels it would be a horrifying situation for the City to have a fire and only two-fire officers left to respond to another emergency.

Regarding the Video personnel, she repeats that it is a management and expectations problem. The parties involved need to sit down with the administration and tell them what they can really do and administration needs to support them and telegraph this to the others so we can get a grip. The contract seems to work out.

Parks and Recreation has what is symptomatic across many departments. These are internal management issues, and management needs to take a much more direct look at the lack of communication, meeting deadlines and the lack of getting information that needs to be distributed internally. We need to learn how to manage what we have.

Mayor McLallen summarized Council’s consensus on the Police Budget five down and two up, Fire Protection Officers are five up and two down, the Video person has across the board support. The Parks and Recreation Information person is dead out.

Member Lorenzo would like them to be paid $15.50, to stay competitive with a paid on call Fire Department.

Member Schmid said that the Chief asked for $15.00, which is an amount he is agreeable with.

Chief Lenaghan said that $15.00 is based on an average in comparison to other communities directly adjacent to the City of Novi, that we compete with for paid on call personnel. We compete with Northville they have fire fighters living in Novi, as well as Farmington Hills, Walled Lake, and Commerce Township.

Member Lorenzo stated that the average is $15.00. If you go to $15.50 you would be fifty cents more than the City of Northville, fifty cents less than Commerce Township, and closer to the $15.70 and $17.74 of Farmington/Farmington Hills.

Member Mutch asked the Chief about fire fighter turnover in Novi, and the opportunity at Northville or Farmington/Farmington Hills. Do they have a need or create opportunities for people to come in?

Chief Lenaghan answered there have been articles in the newspapers lately about declining participation in these programs. The term volunteer is a generic term many of these fire fighters are paid for their services. In information he has received from the National Volunteer Council, there has been a general decline nationally of people willing to do this type of work whether they are paid or not. In the City of Novi there are sixty-eight Paid On Call, one resigned this week, and notices have been sent to four for lack of attendance. We are authorized for eighty firefighters, twenty per station. There is a recruiting drive going, just like we do every year, and have hired two more. We are also hiring auxiliaries, we are down to three, with two of them on waiting lists for full time positions.

Mayor McLallen reiterated the $15.00 is going to stand, and also accept the Chief’s auxiliary proposal.

Mr. Klaver stated there are two different groups that have moved into the increased multiplier, the command went to the B-4, at 2 ½%, the patrols at B-3, at 2 ¼%. We are recommending the B-3 based on the same premise that the employee is going to cover 100% of the cost to upgrade. When this was discussed previously, we thought other groups would come forward, his understanding the consensus of Council was as long as they stepped forward and were willing to pay the costs, this would be acceptable. It is a different procedure with administrative employees there is no dialog with negotiations. In talking individually with each of the administrative employees, there was support for this program and recommends Councils' approval.

Mayor McLallen stated the Administrative compensation is suggested and an across the board 3% raise. It is well documented based on what we have been giving the unions in their contracts. She commented that other cities are stealing our better employees away with better salaries.

Member Lorenzo commented about an issue that was before Council a couple of meetings ago for the approval of the 1999 Administrative Personnel Policy. Council approved wage range increase adjustments, now potentially there will be another 3% increase. She is concerned about this, and she would still like to see comparisons for positions such as Parks and Recreation Director or any of these positions.

Member DeRoche also stated he has not seen a comparable given where we are not out front.

Mr. Kriewall stated there is one, and we are low on it.

Member Lorenzo would like to see this listing, show her that we are low, legitimize what is being asked for and she will show you the money.

Mr. Kriewall stated that Mr. Klaver checks comparisons all the time. He has seen our Police lead the comparisons, but our administrative staff is compensated below average.

Member Lorenzo is not opposed to the 3% across the board. Her concern is the amended administrative personnel policy.

Member Schmid thinks those decisions with comparisons and justification should come back to Council before they appear on the Consent Agenda with no comps, no perks. He does not know of anyone that can raise salaries indiscriminately for department heads. There has to be a process. He feels that it should be a Council decision if any administrator is going to be given a raise.

Mr. Kriewall stated that it is only for two or three people. These people are at the top of their range. He agrees that in the future any changes in salaries will be shown to Council.

Mayor McLallen stated that there is universal support for administrative employee compensation at 3%. This brings us back to Appointed Officials, the City Manager and City Clerk, for recommendations. She is recommending the 3% for them as well. Information will be given to Council by Wednesday, and she will poll Council by phone.

Member Schmid agrees with 3%.

Member DeRoche asked if they have covered Capital projects?

Mayor McLallen stated there is already a revenue stream creating $300,000, some can be put back in the budget or leave it out altogether, this may be the opportunity to create the $250,000 fund for intensive investments.

She asked if there is support for Lap Top Computers for Council. The big issues are, will we really use it, are we ready to use it, and does Council want to use it? If everyone received the computer, they would be the same for everyone, the computers belong to the City and should not be connected to any Council Members’ private system. The question is, will this be something actively utilized or should Council fund something less than the twenty-two thousand as asked for?

Member Crawford commented that he does use a computer. He feels that it is something that should be used more to communicate with one another, be it among themselves, with staff, or the citizens. An alternative would be to spend less money, maybe to upgrade what is already available, some may have a system already and just need upgrades, and some may not want everything offered. He does not know how it would be administered at this time. Can Mr. Gibson offer any suggestions?

Mr. Gibson stated that could be an alternative. He spoke with Mrs. Loechli about support issues. If everyone had the same standard laptop and software, it would be easier to support than if everyone has a different brand, configuration, and software.

Member Crawford stated that does not support what he had said, but is a valid argument. Ideally it would be nice if everyone had the same system but the cost or need may be more than what Council wants to support.

Member Kramer has a problem with partially funding the computers. His opinion is that the publication of the Web Site and e-mail address will be beneficial to Council and the City. His thinks the idea is to make this available, the rationale is good. If the City provides the computer, then it should be compatible with the City system, on the other hand if a Councilperson is interested or has their own equipment, or does not need or want it, then we can save those dollars. Maybe partially fund it this year and see how much interest there is.

Member Mutch commented that a drawback of having customized parts is when a term of office is over and equipment is turned in, what good is the customized computer to a new member? It is true that initially the City may spend less money. She is not sure that she has heard everyone express an opinion whether this should be done.

Member Schmid asked what the cost of a laptop was, after the initial purchase? Will printers be purchased?

Mr. Gibson answered that was not proposed.

Member Schmid asked again what the total cost would be beyond the laptop? It is great to have all of this equipment, but every computer he has seen seems to generate ten times more paperwork than before.

Mr. Gibson commented the only cost that has been identified would be for support.

Member Schmid asked if there is any telephone costs?

Member Kramer answered the cost is left to the individual, and how much time they want to be "on line".

Member DeRoche looked at this as if they are setting it up for this and future Councils. Again states his opposition to everyone not having the same equipment. There has to be standards but also flexibility. It should be available to increase the Council members communications with the City as well as their constituents. There should be standing rules for Council and administration which say what does and does not go to prevent Council from doing anything that is in conflict with what the attorney says. He feels that if someone already has a setup compatible with the City’s computer system, then they should be allowed to use it. If it only costs the City $1000.00 to allow me to work with my own computer equipment, at my convenience, this would be a benefit to the City. I do not want to have to carry around an extra laptop computer.

Mayor McLallen agrees with Member DeRoche, she also does not need to have another piece of equipment. But Council does need to be ready for the future, when someone may not have computer equipment available.

Member Kramer suggested that a small fund be set up, administered by Mrs. Loechli to work with each Councilperson.

Mayor ProTem Crawford indicated that less than $14,000 could be budgeted for computers instead of the $23,400.

Mr. Gibson asked if anyone needed the full laptop?

Mayor McLallen asked Member Lorenzo if she had any preference for a laptop or care to have any computer?

Member Lorenzo put it this way, in her personal life it is not a high priority, if there is a consensus that she should have a computer, a laptop would do, the smaller the better.

Mayor ProTem Crawford stated that the money in the fund should be for computer education as well as equipment, depending on a person’s needs.

Member Mutch stated that one of the arguments for laptops is that they are portable, desktops are not.

Mr. Gibson said that $10,000 should be enough in the fund.

Mayor McLallen commented that if there were any policy issues, they would need to be addressed as well. She than asked about the consensus for car video, is it out?

Member Mutch commented that the AVL and police car videos are great technology, this is not the year. Again as stated before, there needs to be a management review.

Mayor ProTem Crawford stated the videos might be more important than the "Lo-Jack".

He knows that the Police Chief said all or nothing, but that may be based on a legal issue, there are a lot of advantages to having the video.

Mr. Kriewall stated a problem would be that the cars without would be chosen first. The police do not assign more than two individuals to a particular car. How do you choose which two officers times six cars are going to receive the videos. He agrees with the all or nothing philosophy.

Member Kramer stated that there are two issues here. The car locator has to do with management of the police force the police car video has to do with health, safety, and welfare, and maybe legal support. We should see which issue we should support if either. Management has requested the management tool, Council is more sympathetic towards the video, but are wrestling an all or nothing. His answer is a zero.

Member DeRoche answered that zero is his answer. There is almost $3,000,000 in capital improvements I would like 10% out of there for the rainy day fund.

Member Schmid commented the video and AVL are not necessary, zero.

Mayor ProTem Crawford thinks the video and AVL are important.

Member Lorenzo asked about trees and D.A.R.E. Program expenses for $9,250.00 that appears on page 76?

Member DeRoche said the trees are out.

Mayor McLallen asked her to hold onto the thought of the D.A.R.E. Program. She asked to discuss the info sign next. This sign would be on Ten Mile with messages and it would replace the large yellow portable sign now in use. This is the type of sign that we do not let private industry use.

Mayor ProTem Crawford stated there is a rule in the Ordinance that the City Manager can allow a charity to use this sign.

Member Schmid stated this type of sign is against the ordinances, and citizens that live across the street should be checked with. Do they want a sign out in front of the Civic Center? We may be over estimating the value of this sign. I do not think that we can eliminate the other signs if we put this up. This sign will be outdated in five or ten years at the most, it is $38,000, a lot of money. It will not serve a purpose. No other city has one and Southfield has removed theirs’.

Mayor ProTem Crawford supports the sign. He feels that it is very beneficial and important to our communications.

Member Lorenzo will support the sign as long as it is complies with the sign ordinance. She does not believe in double standards

Member Kramer believes that it is a pertinent means of current communications. He thinks that it needs appropriate landscaping around it. Even if it does not quite meet the ordinances, it is still serving a public function and he supports a variance for a well designed sign.

Member Mutch asked if the $38,000 figure given was a ball park figure or realistic.

Mr. Kriewall answered that it was fairly realistic.

Member DeRoche stated conceptually he is in favor or it, but we are debating at a budget meeting whether we are going to have a sign out front.

Mayor McLallen asked as a budget line item she would like to keep it in. We have five up, one down, and one unsure.

Member Mutch went back to what Member Lorenzo said, if it survives the budget process, we will have budgeted $38,000, it may or may not survive other Council votes.

Member Kramer stated that it is correct, that is the process it needs to go through to make it real.

Member DeRoche commented that he is not sure he is for the sign being a budgeted line item. He feels that this should be brought forward and out of the Capital Improvement Funds as a project.

Member Kramer felt that it should be made clear that if there is full support and is a line item, we define the process what it takes to make it real. Do not bring it to Council under the consent agenda. We have talked about public discussion with the neighbors, analysis with regards to ordinance requirements, updating the process for the sign.

Mayor McLallen stated the Video Replicator was to be left in.

Council Members thought it was half-and-half.

Member Kramer asked if the laptop requested by police was for a car?

Mayor McLallen answered that it is an in house laptop in the Police Department. The Vehicle Locator is gone and the BobCat is to be funded from the Drain Fund.

Member Lorenzo commented that to the D.A.R.E. Program is funded with $9,250 from non-forfeiture funds.

Mr. Gibson stated $4,000 is offset by anticipated contributions.

Member Mutch asked if $5,000 is staying in the budget or going out?

Member Lorenzo answered it is going out.

Mr. Gibson answered we have $9,000 in as an expense, we have $4,000 as revenue and we are going to reduce the expense of $5,000.

Mayor McLallen stated potentially, we could have a true capital aggressive investment fund for rainy day purposes, starting this year, at $253.220.

Member Lorenzo also asked about Rouge Rescue funding for 1999-2000. Last year $105,000 was budgeted. She also would like to bring to the City a Conference "How to Provide Better Services to Citizens" from the Michigan Municipal League. She feels the many items covered would benefit all of the Council Members.

Member Kramer asked if Mr. Gibson has a recommendation for a contingency fund.

Mr. Gibson answered in the range of $400,000.

Member Kramer is asking again this year that the left over money come back to Council for allocation.

Mayor McLallen stated that there were about six items brought to Council last year.

Mr. Gibson stated that leftover monies from Capital Improvements were rolled into this budget.

Member Kramer spoke about the detailed line item when the Planning Commission did their presentation for Wetland essentiality test, it was about $25,000. Their support people recommended only $15,000 for savings of $10,000.

Mayor ProTem Crawford stated that those types of adjustments should be thrown into this pot here.

Member Schmid commented that he does not have any major projects but, he will not support this budget, Capital Expenditures are $3,000,000 more than a year a half ago. It is just ridiculous.

Member Mutch asked about the meeting held on the twenty-second regarding the open items list from the memo, at the bottom it said Municipal Street Fund for sidewalks question mark, legal question. Does that mean there was a legal response that we have not seen yet?

Mr. Gibson stated he had a call from Mr. Dennis Watson, preliminary investigations look like it can be used for sidewalks. It just needs more research.

Mayor McLallen commented that there is one other item on the agenda tonight to wrap up the budget. It is a budget that has allowed the Council to do some things. The good news is, that the budget has allowed us to do then without putting a further burden on the tax payers. The big item for many of us is the creation of the capital fund, a many year goal. We are now ready to take the budget to a public hearing.

Miscellaneous Resolution #99079 adopted by the Oakland County Board of Commissioners, Re: Proposed City of Novi Downtown Development Authority – Tax Capture Exemption

There is a communication in our packet with a slight change to the resolution by the County regarding the DDA.

ADJOURNMENT

There being no further business before the Council the meeting was adjourned at 11:05 p.m.

Thursday’s meeting is officially cancelled.

Kathleen S. McLallen Tonni L. Bartholomew

Transcribed by:

Charlene McLean

Susan E. Blumer

Date Approved: June 7, 1999