Mayor ProTem Crawford called the meeting to order at 7:10 P.M.

ROLL CALL: Mayor McLallen (arrived 7:25 p.m.), Mayor Pro Tem Crawford, Council Members Clark (absent/excused), Kramer, Mitzel, Mutch, Schmid

ALSO PRESENT: City Manager Ed Kriewall, Parks & Recreation Director, Dan Davis, Deputy City Clerk Nancy Reutter

APPROVAL OF AGENDA

AUDIENCE PARTICIPATION

7:10 Jerry Ross HCD Advisory Committee

There was Council consensus for Mayor ProTem Crawford’s suggestion to allow approximately forty-five minutes at the March 6, 1997 meeting for discussion of negotiations, etc.

7:20 Anamaria Kazanis EDC

7:30 Michael Montpetit Board of Review

(absent) Heidi Dean Election Commission

7:50 Julie Johnson Beautification Commission/Election/HCD/EDC

8:00 Linda Krieger Beautification Commission/HCD Advisory

8:10 Eric Krieger Computer Advisory Committee

8:20 Lee BeGole Board of Review

8:30 Mike Watza Board of Review

(absent) Katherine Cosentino EDC

8:45 APPROVAL OF RESOLUTION - Publication of Notice of Intention of Entering into Limited Tax-Supported Contract of Lease and of Right to Petition for Referendum Thereon - Ice Arena Project

Dennis Neiman reported he has met with Mr. Kriewall, Mr. Watson, Mr. Davis, and Mr. Shaw and they are still "crunching" numbers. Mr. Neiman reported they believe $8.5M is a number they should not exceed and it excludes ancillary cost. Further, Plante & Moran is still preparing a feasibility study. Mr. Neiman advised there are time constraints in terms of getting this project up and running by October. To meet that deadline, they need to have money in the bank or be ensured of money in the bank by May, but that would be pushing it. Mr. Neiman explained Council has the first step before them and it does not bind them to do anything. However, it does set the statutory steps in motion. One step is to have the Clerk’s office publish a notice of intent in the Novi News by Thursday if Council adopts it tonight that would mean the referendum period would expire in forty-five days. Mr. Neiman advised that the Notice of Intent states that the City intends to enter a contract with the Novi Building Authority for $10M for an ice arena. It further explains that they intend to make periodic payments to the Building Authority from revenues to be derived from the facility. It also states contracts and processes of preparation will be on file in the Clerk’s office within thirty days. If Administration is not comfortable with moving this forward within the thirty-day period, the contract will not be prepared and will not be on file in the Clerk’s office and they would effectively annul the Resolution. Mr. Neiman stated if they wait for the contract and all the final numbers, the City will be out of that crucial period that the developers have established.

Robert Bendzinski added that the October 1 deadline also drives the project because they will include capitalized interest in the bond issue that will cover interest on the bonds during the five to six month construction period. If the operational income does not begin at a certain point, there will be no revenues to pay the bonds and they will lose one full hockey season.

Mr. Neiman reiterated that the Resolution is a first step and does not obligate the City to move forward. He further explained if Plante & Moran is uncomfortable with the numbers, they will not come back before Council with a contract.

Councilman Mitzel asked if it was similar to the one they did with the EDC bonds? Mr. Neiman replied they might have adopted a Resolution changing the Building Authority. Councilman Mitzel stated this was before any discussion about the Building Authority and he believes it occurred in early December. Councilman Mitzel is almost certain that they prepared an ice arena Notice of Intent. Mr. Neiman replied he did not prepare it.

Councilman Mitzel said what Mr. Neiman is saying about this notice is that by doing it, they will preserve their schedule, but they do not bind themselves by any means. Mr. Neiman replied the contract must come back before Council for approval and effectively, Council controls the Building Authority. This means the Building Authority is not going to issue anything unless they are comfortable with the fact that they can build it with the money available, that they that can build in the time frame, and that the numbers are in order.

Councilman Mitzel wants to be sure that this notice makes all of those things possible, but does not bind the City in any way. In other words, he wants to be certain that the City is not committed any more by signing this than if they don’t. Mr. Neiman said Councilman Mitzel is correct.

Mr. Bendzinski added that the next step is to adopt a contract or lease with the Building Authority that will spell out the maximum number of bonds and a repayment schedule of those bonds.

Mr. Neiman stated if they do not adopt it within thirty days, Council can theoretically adopt it beyond the thirty-day period as long as they file it. Mr. Neiman explained once Council approves the contract, it is in the Building Authority’s hands. Mr. Neiman added, given the make up of the Building Authority, they are not going to do anything that Council does not want them to do.

Councilman Schmid disagrees. He explained that although they appoint the members, he is not certain that Council has any authority over their action. Mr. Neiman asked Council to remember that Ed Kriewall, Les Gibson and Don Saven also sit on the Building Authority along with two citizen members at large.

9:30 Mark Sturing Novi Building Authority

Mayor ProTem Crawford believes many of those who apply to boards and commissions do not realize the commitment in terms of when they meet or the time involved. He suggested when they notify applicants for interviews, they should better inform them about what their appointment will involve.

Councilwoman Mutch stated she assumes the applicants already know what their commitment will be. She further stated they then run into the problem of those who are appointed are then unable to meet their commitment. Consequently, Council is faced with the more difficult problem of removing the volunteer from their appointment.

Councilwoman Mutch is concerned about the appointment to the Library Board. She advised there are no applicants and the current appointment will expire on March 1. Councilwoman Mutch suggested that the Library should solicit applicants.

There was Council consensus to contact the Beautification Commission, HCD Advisory and Computer Advisory Committee about what their concerns are in terms of whether there is still a need for their existence.

Councilwoman Mutch recalled at one time Council got an annual report from committees as a lead into their budget requests and believes it is a good way for Council to become familiar with the committee’s work.

Mayor McLallen stated Council has talked about different ways for committees to let Council hear what they do, but Council would prefer to receive the information at another time instead of during the budget period.

Councilwoman Mutch remembers this taking place during January or February and reminded Council about the Town Hall video that the Historical Commission prepared.

Mayor McLallen reminded Council that they already have meetings scheduled through March.

Councilman Schmid gets more from meeting with the various committees than from a piece of paper.

Councilman Schmid’s second point was about a memorandum in the Administration packet. Councilman Schmid does not see any reason to address the issue tonight.

Councilman Mitzel believes Council requested Administration to provide an operational audit about how departments are organized for mid-census funding consideration at their January 6 Work Session Meeting.

Councilwoman Mutch requested an opinion from Mr. Fried for information about the recent State Supreme Court ruling on library boards and their authority to set budgets and mileages.

Councilwoman Mutch asked how is Council addressing the vacancies where there are not enough applicants.

The Mayor asked how can there be five vacancies on the Board of Review when Council already decided they would only have one board.

Nancy Reutter replied they are set up to have one board of three members and one set of three alternates. She added all members, except Denise Jenkins and Lee BeGole, have resigned. Consequently, there are four openings and only two applicants.

Mayor McLallen reported there are four vacancies for the Beautification Commission with one reappointment and two applicants.

Ms. Reutter reminded Council they have added two more spots and two appointments that are expiring.

The Mayor reported that Mark Adler would like to be reappointed to the Cable Access and there is some discussion about whether they want to continue the Computer Advisory Committee.

Councilwoman Mutch reminded Council that some of the same people are applying for several different appointments.

They Mayor stated there are three vacancies for the Economic Development Corporation and believes there are enough applicants.

Mayor ProTem Crawford does not want to appoint someone just because there are vacancies.

The Mayor directed the Clerk’s office to contact Julie Johnson about her interest in becoming a member of the Library Board.

Mayor McLallen requested Administration to readvertise for the Board of Review positions on cable.

Councilman Kramer believes there is no sense voting on appointments for those that do not have enough applicants.

The Mayor replied she believes Cable, Election, EDC and Senior Housing have enough applicants.

ADJOURNMENT

There being no further business before City Council, the meeting was adjourned at 10:30 P.M.

Mayor City Clerk

Transcribed by Barbara Holmes