AUBURN HILLS MEETING SCHEDULE

Transcription

1 AUBURN HILLS MEETING SCHEDULE JUNE 2012 ( ) 04 City Council, 7:00 p.m., Council Chamber 09 City Council Goals and Objectives, 9:00 a.m., Fieldstone Golf Course 11 Tax Abatement Review Committee, 5:30 p.m., Admin Conference Room 12 Tax Increment Finance Authority, 4:00 p.m., Admin Conference Room 14 Zoning Board of Appeals, 7:00 p.m., Council Chamber CANCELED 18 Special Meeting Pension Board 1:10 p.m., Admin Conference Room 18 Special Meeting RHC 1:00 p.m., Admin Conference Room 18 City Council, 7:00 p.m., Council Chamber 20 Beautification Advisory Commission, 6:00 p.m., Admin Conference Room DATE CHANGE 26 Library Board, 4:30 p.m., Library Conference Room 26 Planning Commission/Recreation Commission, 7:00 p.m., Council Chamber 27 Beautification Advisory Commission, 6:00 p.m., Admin Conference Room DATE CHANGE City Council Chamber 1827 N. Squirrel Road Administrative Conference Room 1827 N. Squirrel Road Public Safety Building 1899 N. Squirrel Road Community Center 1827 N. Squirrel Road Department of Public Services (DPS) 1500 Brown Road Fieldstone Golf Course Taylor Road Library Seyburn Drive Downtown City Offices 3395 Auburn Road, Suite A

2 AUBURN HILLS MEETING SCHEDULE JULY 2012 ( ) 02 City Council, 7:00 p.m., Council Chamber 09 Tax Incentive Review Committee, 5:30 p.m., Admin Conference Room 10 Tax Increment Finance Authority, 4:00 p.m., Admin Conference Room 12 Zoning Board of Appeals, 7:00 p.m., Council Chamber 16 City Council, 7:00 p.m., Council Chamber 17 Board of Review, 11:00 a.m., Admin Conference Room 24 Library Board, 4:30 p.m., Library Conference Room 25 Beautification Advisory Commission, 6:00 p.m., Admin Conference Room 31 Planning Commission/Recreation Commission, 7:00 p.m., Council Chamber City Council Chamber 1827 N. Squirrel Road Administrative Conference Room 1827 N. Squirrel Road Public Safety Building 1899 N. Squirrel Road Community Center 1827 N. Squirrel Road Department of Public Services (DPS) 1500 Brown Road Fieldstone Golf Course Taylor Road Library Seyburn Drive Downtown City Offices 3395 Auburn Road, Suite A

3 The City of Auburn Hills Regular City Council Meeting Monday, June 18, 2012 * 7:00 p.m. Council Chamber 1827 N. Squirrel Road Auburn Hills MI MEETING CALLED TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL OF COUNCIL 4. APPROVAL OF MINUTES 4a. Regular City Council Meeting June 4, b. Goals & Objectives Workshop June 9, APPOINTMENTS & PRESENTATIONS 5a. Appointment Micheal Lohmeier as City Assessor 6. PUBLIC COMMENT 7. CONSENT AGENDA All items listed are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Council member so requests, in which event the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. 7a. Board and Commission Minutes 7a.1. Beautification Advisory Commission, May 23, a.2. Tax Increment Finance Authority, June 12, b. Motion Approve 2012 Sewer Rehabilitation Construction Services 8. OLD BUSINESS none. 9. NEW BUSINESS 9a.1. Motion Accept Plante Moran s 2011 Audited Financial Statements 9a.2. Motion Accept Amended Budget to Meet GASB 54 Requirements 9b. Motion Approval of Recommendation for North Opdyke Pathway Construction 10. COMMENTS AND MOTIONS FROM COUNCIL 11. CITY ATTORNEY S REPORT 12. CITY MANAGER S REPORT 13. EXECUTIVE SESSION Property Sale 14. ADJOURNMENT City Council meeting minutes are on file in the City Clerk s office. NOTE: Anyone planning to attend the meeting who has need of special assistance under the Americans with Disabilities Act (ADA) is asked to contact the City Clerk's Office at or the City Manager's Office at hours prior to the meeting. Staff will be pleased to make the necessary arrangements.

4 C ITY OF A UBURN H ILLS C ITY C OUNCIL A GENDA D ATE: J UNE 18, 2012 A GENDA I TEM N O. 5 A. June 4, 2012 CALL TO ORDER: by Mayor McDonald at 7:00 p.m. LOCATION: City Council Chamber, 1827 N. Squirrel Road, Auburn Hills, MI Present: Mayor McDonald, Mayor Pro Tem Hammond, Council Members Kittle, Knight, McDaniel, Verbeke Absent: Council Member Doyle Also Present: City Manager Auger, Assistant City Manager Tanghe, Director Olko, Deputy Director Manning, Deputy Director Hardesty, City Clerk Kowal, City Assessor Lohmeier, City Attorney Beckerleg, City Engineer Juidici, Library Director Stephanie McCoy, Community Promotions Opalewski, Management Intern Thomas, IT Director Cagle 10 Guests 4. APPROVAL OF MINUTES 4a. Regular City Council Meeting May 21, 2012 Moved by Verbeke; Seconded by Kittle. RESOLVED: To approve the minutes of May 7, 2012 Regular City Council Meeting as submitted. VOTE: Yes: Hammond, Kittle, Knight, McDaniel, McDonald, Verbeke No: None Motion carried (6-0) RESOLUTION NO APPOINTMENTS & PRESENTATIONS 6. PUBLIC COMMENT Mr. & Mrs. Firu, 101 Guanonocque asked if there was going to be discussion regarding his property. Mayor McDonald stated no, it isn t on the agenda. Mayor McDonald introduced Richard Symanski, the Student Bar Association President from Cooley Law School. He is interested in political law and decided to attend the Council meeting to see how things are run. 7. CONSENT AGENDA 7a. Board and Commission Minutes 7a.1. Retiree Healthcare Board, April 24, a.2. Pension Board, April 24, a.3. Beautification Advisory Commission, April 25, a.4. Retiree Healthcare Board, May 9, a.5. Pension Board Meeting, May 9, a.6. Public Safety Advisory Committee, May 22, b. Motion Approve Priority One as the vendor for police patrol vehicle changeovers. RESOLVED: To award the bid for (5) police vehicle changeovers to Priority One Emergency of Livonia, MI at a total cost of $12, c. Motion Approve bid award to purchase hydraulic rescue tools, Jaws of Life. RESOLVED: To approve the purchase by the Auburn Hills Fire Department of two (2) Electric-Hydraulic systems from Hurst Apollo and one (1) hydraulic system from TNT for the total package cost of $67,283. Moved by Kittle; Seconded by Hammond. RESOLVED: To approve the Consent Agenda. VOTE: Yes: Hammond, Kittle, Knight, McDaniel, McDonald, Verbeke No: None Motion carried (6-0) RESOLUTION NO OLD BUSINESS The City of Auburn Hills City Council Meeting Minutes

5 City Council Minutes June 4, 2012 Page 2 of 7 8a. Public Hearing/Motion Accepting Ordinance # to Amend Chapter No. 6, Alcoholic Liquors, Ordinance of the Auburn Hills City Code, Second Reading and Final Adoption Responding to Mr. Kittle, Deputy Chief Hardesty explained the first benefit of amending the ordinance is to be compliant with State law and the second, to allow Council to object to those applying for a liquor license that have misdemeanor or felony violations. Deputy Chief Hardesty noted, an objection by Council may not prevent the State from issuing a license, but allows the State to know how Council feels. Mayor McDonald opened the public hearing at 7:07 p.m. Hearing no comments, Mayor McDonald closed the public hearing at 7:07 p.m. Moved by Hammond; Seconded by Verbeke. RESOLVED: To accept Ordinance # to amend Chapter No. 6, Alcoholic Liquors, of the Auburn Hills City Code. VOTE: Yes: Hammond, Kittle, Knight, McDaniel, McDonald, Verbeke No: None Motion carried (6-0) RESOLUTION NO b. Motion Approve Industrial Facility Exemption Certificate Dynamic Corp Mr. Lohmeier explained in January, Dynamic Corp requested an abatement for personal property; however, Council postponed the request until the real property tax appeal was resolved. The tax appeal for 2010 and 2011 real property has been settled. The taxable and assessed value were the same; $763,620 and $569,330. It was agreed the true cash value is $1 million, which resulted in an assessed taxable value of $500,000. Mr. Lohmeier stated yes, the company is current on their property tax. A company representative stated the company purchased a milling machine and a turning center, approximately $580,000 worth of equipment. The company has been in Auburn Hills roughly 16 years and based out of Holland, Michigan for 35 years. There are currently 19 employees at the Auburn Hills location, running two shifts and 20 hours per day. Moved by Knight; Seconded by Verbeke. RESOLVED: To approve the request for an 8 year IFEC for Dynamic Corporation for a total personal property investment of $586,120 by adopting the attached resolution (Attachment A). Mr. Knight congratulated the Company and the Assessor for coming to a meeting of the minds and allowing a win-win situation, with the Company staying in the City. VOTE: Yes: Hammond, Knight, McDaniel, McDonald, Verbeke No: Kittle Motion carried (5-1) RESOLUTION NO NEW BUSINESS 9a. Motion Approve Bid awarded to Advanced Lighting and Sound for the Audio/Visual Technology Upgrade Project Mr. Opalewski and Ms. Thomas presented a Power Point presentation demonstrating some of the problems with the current audio and visual equipment that is being used. Ms. Thomas explained they recently discovered the cameras in the Council Chamber were not designed for this type of use, they were designed for teleconferencing and the cable channel programming is very basic. The current equipment is eight years old, installed in 2004 and by standards is considered out of date. One problem with the current equipment is if one portion of the system freezes up, the entire system must be shut down and restarted. A RFP (request for proposal) was created and put on MITN (Michigan Inter-governmental Trade Network) for companies to respond. Companies that wished to submit a bid were required to attend a meeting to view the Council Chamber and the existing equipment. With four companies submitting bids, the City hired a knowledgeable consultant to blindly review each bid and make a recommendation. Each bidder was required to include references of work they had completed. The team, Mr. Opalewski, Ms. Thomas and Mr. Cagle, visited some of those references to view the equipment and get feedback from the references on the equipment and work that had been completed. Ms. Thomas explained the recommendation is based on advice from the consultant as well as what the Team observed and learned. Ms. Thomas proceeded to explain what equipment is included in the package, noting training for the IT staff is also included. Bob Sullivan, president of Advance Lighting and Sound is present to answer any questions. Regarding background music on the cable channel, Mr. Cagle explained currently a radio station is needed to broadcast the background music, but with the new system it won t be necessary to rely on a radio station. With the new system there will be a library of music available. Mr. Knight questioned why there s such a large cost difference between bids. Mr. Opalewski explained the highest bid is customized with wireless controllers, more than what is needed. Advance Sound and Lighting is customized for the City s use.

6 City Council Minutes June 4, 2012 Page 3 of 7 Mr. Beckerleg stated yes, one motion is sufficient for the package bid as well as a new camera and equipment. Responding to Ms. Hammond, Mr. Cagle stated the same mounting positions will be used and the new cameras pictures will be more pleasing than the current ones and will be clearer. There will also be the ability for close-up shots of speakers and can include name and/or title of the speaker. Mr. Kittle asked Mr. Sullivan if music is an option and how video streaming would work. Mr. Sullivan explained music is available and live streaming and recording can be done simultaneously. Mr. Cagle stated currently the City s web page cannot handle live streaming of a Council meeting. Mr. Opalewski confirmed for Mr. McDaniel that updating the website is currently being investigated and hopefully will be able to bring suggestions to Council in the near future. Mr. Opalewski stated the current website is approximately three years old, which is typically the life span of a website. Ms. Thomas stated she is able to purchase the camera from an Auburn Hills based company, U.S. Appliance, at a discounted price. Responding to Ms. Hammond, Mr. Opalewski stated this equipment has the capacity to be updated as needed, which is another reason this bid was chosen. Moved by Knight; Seconded by Hammond. RESOLVED: To award the bid for the Audio/Video Technology Upgrade Project to Advanced Lighting and Sound in the amount of $56, in accordance with the specifications outlined in the RFP issued March 23, 2012; and the purchase of one (1) DSLR camera and related equipment, not to exceed $800. Mr. Kittle asked if any surrounding communities used this type of equipment. Mr. Sullivan explained Rochester purchased their equipment a few years ago and does not have HDTV, but Advance Lighting and Sound has equipped Lake Orion cable tv, Huntington Woods, and Washington Township. Ms. Thomas explained the team looked at Rochester s setup, but felt the system Advanced Lighting and sound suggested is better for the City. VOTE: Yes: Hammond, Kittle, Knight, McDaniel, McDonald, Verbeke No: None Motion carried (6-0) RESOLUTION NO COMMENTS AND MOTIONS FROM COUNCIL Mr. McDaniel: Is disappointed dates for the Goals and Objectives Workshop were not discussed with Council Members prior to choosing a date, also noting other Council members felt the same. Again, he will not be attending the workshop since he will be out of the country. Moved by McDaniel; Seconded by Kittle. RESOLVED: To postpone the scheduled Goals and Objectives Workshop of June 9 to a date within a few weeks that would allow input on the date from Council Members. Mr. Kittle stated he too, is struggling with the date. Mayor McDonald stated he isn t available for the next month on the weekends. Mr. McDaniel asked if it would be possible to have the workshop during the week. He stated in the past there has always been an attempt to determine a date that was acceptable for everyone. Mayor McDonald confirmed for Mr. Knight that June 9 th was acceptable to all Council Members, except Mr. McDaniel. Mr. Kittle stated he has a conflict with date because of another engagement. Mr. Knight noted the budget kick-off is in July, so this workshop should take place in June. The only available Saturday would be June 16th, the 23 rd is Summerfest and the 30 th is going into July 4 th. Mayor McDonald noted there is a facilitator in place for June 9 th ; also, this wouldn t be the first time that all Council Members were not attending the workshop. Mr. Kittle stated a six hour workshop would not be possible during the week, unless it were broken into smaller segments. He withdrew his support of the motion, asking for more discussion to learn about the facilitator. Ms. Verbeke seconded Mr. McDaniel s motion. Mr. Knight told Mr. Kittle his vote is based on whether Mr. Kittle will be attending the workshop or not. Mr. Kittle explained his dilemma, a family function for his recently graduated daughter or the Council workshop. Mr. McDaniel withdrew his motion until Mr. Kittle could discuss the facilitator. Mr. Kittle:

7 City Council Minutes June 4, 2012 Page 4 of 7 Congratulated Mr. Lohmeier on his hard work studying for the level 4 assessor s test and asked if this meant Mr. Bennett, City Assessor would be retiring. Mr. Auger explained a recommendation will be forthcoming to name Mr. Lohmeier as the Assessor for the City. Asked how the workshop facilitator was chosen and the rationale behind the choice. Mr. Auger explained at the direction from Council he looked for a facilitator, though with such short notice if one couldn t be found then the workshop would be postponed until one could be found. Oakland University has someone on staff, Dr. Piskulich, who has done community facilitation on different projects. He was anxious to help out wanting to expand the relationship between the City and OU. He is quite accomplished in public policy and political science, a perfect fit especially on such short notice. Mr. Tanghe explained who he had in mind from the consulting firm the City has used in the past, was not available on such short notice. Mr. Kittle asked if anything is known about Dr. Piskulich s technique or philosophy. Mr. Auger explained he has met Dr. Piskulich but not in the capacity as a facilitator, but he is a very friendly man. He has facilitated at meetings of the City and five other communities for consolidation and best practices; he moves things right along. No, he hasn t sought other communities comments or thoughts on Dr. Piskulich. Mr. Kittle had hoped to have two or three candidates to choose from and not just having Dr. Piskulich facilitate the meeting because of the time factor. Mr. Knight stated he thought this workshop was looking out over the next five years and a facilitator wouldn t have been necessary, but looking out over the next 20 years, having a visionary would be helpful. Mr. Kittle noted to reach the 20 year vision, you need building blocks from year one and adding to reach a goal. Ms. Verbeke too, was disappointed Council didn t have any input in the selection of the facilitator, with both Mr. Kittle and Ms. Doyle having knowledge in this area. Mayor McDonald explained Council asked Mr. Auger to find a facilitator, not for Council to micro-manage the process. Both Ms. Verbeke and Mr. McDaniel disagreed with the Mayor, stating Council should have had the opportunity to be included in the search for the facilitator. Responding to Mr. McDaniel, Mr. Auger stated after negotiating with Dr. Piskulich, his fee will be $ Mr. McDaniel stated generally when making purchases there are a few proposals to choose from, including background material. Mayor McDonald stated Mr. Auger did what Council directed him to do as indicated in the motion from the last meeting. Ms. Hammond: Also wanted to congratulate Mr. Lohmeier on his passing his level 4 assessor s test. Noted the great turnout for the Memorial Day parade and the wonderful, family-friendly American Legion picnic. Ms. Verbeke: Thanked Fieldstone Golf Course for helping with the parade preparation and golf carts. Received a letter from a resident who had safety concerns and asked if the Director Olko and other Council members had received the letter. Director Olko explained it was forwarded to her and she intended to handle the complaint as the department does with any resident s complaint. The process includes interviewing the letter writer and explaining why the department does things the way they do, and then a determination will be forwarded and shared with Mr. Auger. The parade route is made by the American Legion and road closures and assistance with the parade is made by the police department. Mr. Knight: Spoke with the letter writer and he also believes the parade route should be reviewed. The route could be extended, which would take more time, but it would include more spectators of the parade and possibly encourage more people to attend the parade. Congratulated Mr. Lohmeier. Asked if DPS could trim the growth in front of the Welcome to Auburn Hills on Walton Boulevard, which is blocking the portion of the sign that reads Home of Oakland University. Suggested if the City wants to be known as a college town, the welcome signage should include not only Oakland University, but all the colleges that are located in Auburn Hills. Asked Mr. Tanghe if any progress has been made with the Superior Excavating relocation?

8 City Council Minutes June 4, 2012 Page 5 of 7 Mr. Tanghe explained the property on Lapeer Road didn t have enough dry land to relocate there, so there is a parcel of land on Collier Road that is being investigated. Mr. McDaniel: Mr. Knight asked that this item be kept on the status report. Moved by Mr. McDaniel; Seconded by Ms. Verbeke RESOLVED: To postpone the Goals and Objectives Workshop on June 9, 2012, based on the information that Council has been given. VOTE: Yes: Kittle, McDaniel, Verbeke No: Hammond, Knight, McDonald Motion Failed (3-3) RESOLUTION NO CITY ATTORNEY S REPORT none. 12. CITY MANAGER S REPORT Ownership of the Golf Dome has changed and the new owner is working with the City. Approximately 50% of the cleanup is complete and will be continuing. City staff has been walking the site making sure compliance issues such as rips in the netting and not allowing golfing to take place where those rips are. Management at Sheffield Estates has been notified and will be kept up-to-date. Attended the Greater Detroit Policy Conference with approximately 1,500 business people, down from 2,000. He met with current businesses from Auburn Hills and was introduced to new businesses. Since explaining the Auburn Hills advantage, some of those companies have already contacted him, including one as far away as Grand Rapids. 13. EXECUTIVE SESSION Property Acquisition Moved by Ms. Verbeke; Seconded by Ms. Hammond. RESOLVED: To adjourn to Executive Session. VOTE: Yes: Hammond, Kittle, Knight, McDaniel, McDonald, Verbeke No: None Motion carried (6-0) RESOLUTION NO Council adjourned to Executive Session at 8:10 p.m. Council returned to Regular Session at 8:40 p.m. Moved by Verbeke; Seconded by Knight. RESOLVED: To authorize the Mayor and City Clerk to make an offer to purchase property with identification number in accordance with the terms and conditions stated in the Offer to Purchase. Furthermore, authorize Assistant City Manager Thomas Tanghe, on behalf of the City, to execute all documents related to the transaction including the closing. Funds for the purchase are available from the City s General Fund, Fund Balance. VOTE: Yes: Hammond, Kittle, Knight, McDaniel, McDonald, Verbeke No: None Motion carried (6-0) RESOLUTION NO ADJOURNMENT Without objection, the meeting adjourned at 8:43 p.m.

9 City Council Minutes June 4, 2012 Page 6 of 7 Attachment A Resolution No CITY OF AUBURN HILLS RESOLUTION APPROVING AN INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE FOR DYNAMIC CORPORATION At a regular meeting of the City Council of the City of Auburn Hills, Oakland County, Michigan, held in the Council Chambers at 1827 N. Squirrel Road, Auburn Hills MI on the 4th day of June, The following resolution was offered by Councilperson Knight and supported by Councilperson Verbeke. WHEREAS, pursuant to P.A. 198, 1974, M.C.L et seq., after a duly noticed public hearing held on the 13th day of November, 1986 the City of Auburn Hills, established an Industrial Development District, commonly referred to as the Samelson Development Company Industrial Development District; and WHEREAS, Dynamic Corporation has filed an application for an Industrial Facility Exemption Certificate with the Clerk of the City of Auburn Hills with respect to proposed new personal property to be acquired and installed within the Samelson Development Company Industrial Development District; and WHEREAS, before acting on said application, the City Council of Auburn Hills held a public hearing on the 9th day of January, 2012 at a regularly scheduled meeting, at which time the applicant, the assessor, and a representative of the affected taxing units were given written notice and were afforded an opportunity to be heard on said application; and WHEREAS, construction and installation of the facility has not begun earlier than six (6) months before December 5, 2011, the date of the acceptance of the application for the Industrial Facility Exemption Certificate; and WHEREAS, completion of the personal property is calculated to and will at the time of issuance of the certificate have the reasonable likelihood to retain, create or prevent the loss of employment in Auburn Hills; and WHEREAS, the aggregate SEV of real and personal property exempt from ad valorem taxes within the City of Auburn Hills after granting this certificate will exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property thus exempted. NOW, THEREFORE, BE IT RESOLVED BY the City Council of Auburn Hills that: 1. The City Council of Auburn Hills finds and determines that the granting of this Industrial Facilities Exemption Certificate, together with the aggregate amount of the Industrial Facilities Exemption Certificates previously granted and currently in force, under Act No. 198 of the Public Acts of 1974, shall not have the effect of substantially impeding the operation of the City of Auburn Hills, or of impairing the financial soundness of a taxing unit which levies an ad valorem property tax in the City of Auburn Hills. 2. The application for an Industrial Facilities Exemption Certificate with respect to a facility on the following described parcel of real property situated within the Samelson Development Company Industrial Development District; to wit; T3N, R10E, SEC 26 PART OF NW 1/4 BEG AT PT DIST N E FT & S W FT & N E FT & S E FT FROM NW SEC COR, TH S E FT, TH S W FT, TH ALG CURVE TO RIGHT, RAD 746 FT, CHORD BEARS S W FT, DIST OF FT, TH N W FT, TH N E FT TO BEG 3.06 A FR 011. Property Identification Number is hereby approved for Personal Property Improvements only.

10 City Council Minutes June 4, 2012 Page 7 of 7 3. The Industrial Facilities Exemption Certificate shall remain in force and effect for a period of 8 years, and the starting date for the certificate is December 30, 2012 and the ending date is December 30, The total project investment approved is $586, Dynamic Corporation agrees to operate the facility for which the Industrial Facilities Exemption Certificate is granted for the term of the certificate, plus an additional two years after the date of the expiration. AYES: NAYS: ABSENT: ABSTENTIONS: Mayor Mayor McDonald, Mayor Pro Tem Hammond, Council Members Knight, McDaniel, Verbeke Council Member Kittle Council Member Doyle None RESOLUTION ADOPTED (5-1) STATE OF MICHIGAN) )SS COUNTY OF OAKLAND) I, the undersigned, the duly appointed City Clerk for the City of Auburn Hills, Oakland County, Michigan do hereby certify that the foregoing is a true and complete copy of a resolution adopted at a regular meeting of the Auburn Hills City Council held on the 4th day of June, IN WITNESS WHEREOF, I have hereunto affixed my official signature on this 5th day of June, Terri Kowal, City Clerk

11 C I T Y O F A U B U R N H I L L S C I T Y C O U N C I L A G E N D A D A T E : J U N E 18, A G E N D A I T E M N O. 4 B. The City of Auburn Hills City Council Workshop on Goals and Objectives Minutes June 9, 2012 CALL TO ORDER: by Mayor McDonald at 9:00 a.m. LOCATION: Fieldstone Golf Course, 1984 Taylor Rd., Auburn Hills, MI Present: Mayor McDonald, Pro Tem Hammond, Council Members Doyle, Knight, Verbeke Absent: Council Members Kittle and McDaniel. Also Present: City Manager Auger, Assistant City Manager Tanghe, Director Chief Olko, Deputy Director Hardesty, Facilitator Pat Piskulich 1. Discussion took place regarding the Council s goals and objectives for the upcoming year. 2. ADJOURNMENT Without objection, the meeting adjourned at 3:00 pm.

12 C ITY OF A UBURN H ILLS C ITY C OUNCIL A GENDA D ATE: A GENDA I TEM N O. 5 A. To: Mayor and City Council From: Peter E. Auger, City Manager; Thomas A. Tanghe, ACM / Director of H.R. & Labor Relations Submitted: June 13, 2012 Subject: Appointment of Micheal Lohmeier to City Assessor, Level IV INTRODUCTION AND HISTORY As you will recall, City Council took action in December of 2009 to make a commitment to Micheal Lohmeier to be appointed as City Assessor upon receiving his Level IV Master Assessing Officer designation as required by the State of Michigan. While he had expected to complete that requirement within about a year, the program requirements changed from the State Tax Commission and therefore, Micheal entered the new program based on their criteria for entry. Micheal recently completed the program and on June 4, 2012, the State Tax Commission not only bestowed upon him the designation of Michigan Master Assessing Officer (4), he was also the highest scoring recipient in the State and was the Valedictorian of his class. Based on the action taken by City Council, that which is provided below, we are now prepared to appoint Mr. Lohmeier as our Assessor of record. EXCERPT FROM CITY COUNCIL MEETING OF DECEMBER 21, i. Motion Authorize City Manager to Make Employment Commitment to Successor Candidate to Current City Assessor. Micheal Lohmeier introduced himself and gave council an overview of his professional and educational experience. Mr. Auger clarified that the motion is a commitment to hire Mr. Lohmeier as the City Assessor upon him obtaining his Level IV certification. Suggestion was made to create policy for the hiring of council appointments. Moved by Mr. Kittle; Seconded by Ms. Hammond. RESOLVED: To authorize the City Manager to provide the Assessor candidate with a commitment that he will be appointed City Assessor by the City Council upon obtaining his Level IV certification on or before December 31, 2010 at which time he will receive an annual salary of $92,206; assuming he has met all other employment requirements of the City of Auburn Hills. VOTE: Yes: Doyle, Hammond, Kittle, Knight, McDaniel, McDonald, Newkirk No: None Motion carried (7-0) STAFF RECOMMENDATION Staff recommends the appointment of Micheal R. Lohmeier to the position of City Assessor. MOTION Move to appoint Micheal R. Lohmeier to the position of City Assessor effective June 19, 2012 with an annual salary of $92, I CONCUR: PETER E. AUGER, CITY MANAGER O:\CITY COUNCIL PACKET\JUNE 18\Appointment Of Micheal Lohmeier As City Assessor.Doc

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14 C ITY OF A UBURN H ILLS C ITY C OUNCIL A GENDA D ATE: J UNE 18, 2012 A GENDA I TEM N O. 7 A.1. NOT YET APPROVED CITY OF AUBURN HILLS BEAUTIFICATION ADVISORY COMMISSION May 23, 2012 CALL TO ORDER Acting Chairperson Foster called the meeting to order at 6:19 p.m. ROLL CALL Present Brocklebank, Ormsbee, Arendt, Foster, Also Present Elizabeth Brennan Executive Assistant, Community Development Absent Guests McDaniel None LOCATION Administrative Conference Room 1827 N. Squirrel, Auburn Hills, MI PERSONS WISHING TO BE HEARD - None CORRESPONDENCE - Ms. Brennan received two Beautification nominees as of date. APPROVAL OF MINUTES Mr. Brocklebank moved to approve the minutes of April 19, Supported by Ms. Ormsbee VOTE: Yes: Foster, Arendt, Ormsbee, Brocklebank, No: None Motion Carried (4-0) NEW BUSINESS 1. The commission agreed that Mr. Foster will preside over the meetings as acting chairperson until the two vacant positions are filled. Ms. Brennan will advise the

15 Beautification Advisory Commission May 23, 2012 Page 2 of 2 group of new applications upon receipt. Nominations and elections will be held once the positions are filled. 2. Mr. Brocklebank volunteered to do research catering companies for the next Beautification Awards Banquet and Fall BCSEM meeting. He will secure sample menus and quotes from at least three Auburn Hills-based caterers. 3. The commission agreed to start the process of getting donations for the raffle prizes for the BCSEM meeting. OLD BUSINESS Perennial Exchange 1. The commission discussed the perennial exchange event that was held on May 19 th and agreed it went very well. Ms. Brennan informed the commission that she had received very positive feedback at the event and later by phone. 2. The commission discussed scheduling the program/speaker at the start of the event instead of in the middle and pulling raffle tickets every 15 minutes instead of giving away the prizes all at one time. 3. Emphasize the need for labeling plants in future advertising. Budget The current budget / expenditure report was presented to the commissioners for review. OPEN DISCUSSION 1. Banners were ordered for Hawk Woods Park and should arrive within a few weeks. 2. Ms. Brennan suggested an idea for fall lamppost banners which was well received. She will research options and add to the agenda for discussion in June. 3. In regards to the Beautification Awards nomination and voting processes, it was agreed that the commission members cannot nominate themselves to be considered for an award. If their home is nominated by someone else, they must abstain from voting on their own property. 4. Prior to the next meeting, Ms. Brennan will forward a copy of the bylaws to all commission members. CONFIRMATION OF NEXT MEETING The next scheduled meeting is June 27, ADJOURNMENT The meeting was adjourned at 7:12 p.m. Respectfully Submitted, Benita LaLone

16 C ITY OF A UBURN H ILLS C ITY C OUNCIL A GENDA D ATE: J UNE 18, 2012 A GENDA I TEM N O. 7 A.2. Not Yet Approved" CITY OF AUBURN HILLS TAX INCREMENT FINANCE AUTHORITY MEETING June 12, 2012 CALL TO ORDER: Chairman Hassett called the meeting to order at 4:00 p.m. ROLL CALL: Present: Dilland, Douglas, Goodhall, Hassett, Molnar, Stonehouse, Thornton Absent: Ardelean, Price, Executive Director Tom Tanghe (all absent and excused) Also Present: Coordinator of Community Relations and Legislative Affairs Stephanie Carroll, Finance Accounting Clerk Kim Wickenheiser, DPS Deputy Director Don Grice, Manager of Public Utilities Dave Harran, OHM Engineer Tim Juidici, Executive Assistant Karrie Marsh Guests: Former TIFA Chairperson Clarence Bennett, Owner of Elwell s Grill, Patrick Elwell LOCATION: Auburn Hills City Hall, Administrative Conference Room, 1827 North Squirrel Road, Auburn Hills, Michigan PERSONS WISHING TO BE HEARD None CORRESPONDENCE & PRESENTATIONS Ms. Carroll introduced the memo dated April 30, 2012 which was informational and no action was required. The memo was regarding Board Member Insurance Coverage. The TIFA Board members are covered by MTPP and no amendment is needed. APPROVAL OF MINUTES Moved by Molnar to approve the April 10, 2012 minutes. Supported by Douglas. Yes: Dilland, Douglas, Goodhall, Hassett, Molnar, Stonehouse, Thornton No: none Motion carried FINANCIAL REPORT Finance Accounting Clerk Kim Wickenheiser presented the financial report for May 31, 2012, reviewing the activities for this period, including the most recent revenues and expenses. That report included the following Total Liabilities and Fund Balances and Available Cash: TIFA 85-A $ 29,984,481 Available Cash (TIF-A) $7,382,524 TIFA 85-B $ 14,102,249 Available Cash (TIF-B) $9,734,095 TIFA 86-D $ 28,727,095 Available Cash (TIF-D) $3,394,533 $ 72,813,825

17 Page 2 of 4 June 12, 2012 minutes Moved by Molnar to approve the Financial Report of May 31, 2012 as submitted. Supported by Douglas. Yes: Dilland, Douglas, Goodhall, Hassett, Molnar, Stonehouse, Thornton No: none OLD BUSINESS none. Motion carried NEW BUSINESS Ms. Carroll introduced a memo dated May 30, 2012 regarding the Site Improvement Grant submitted by Mr. Pat Elwell for 3315 Auburn Rd. Mr. Elwell has decided to re-open a restaurant and is wanting to create a much needed storefront appearance by adding windows and an entrance fronting on Auburn Rd. Mr. Elwell completed the requirements of obtaining three quotes. The lowest qualified bidder is Meadowbrook Homes Inc. The quote, in its entirety, is eligible for funding. There is no indication that the corporation is not in good standing at this time. Therefore, the recommendation is a grant in the amount of $8, Mr. Elwell stated that he wanted to add double doors and two windows on the side of the building and a window on the west side of the building. There was discussion about this and the Board agreed it was a good idea. Mr. Elwell was asked when the restaurant would open. His answer was July. He stated that the restaurant will be called Elwell Grill. Moved by Thornton to approve the request from Pat Elwell for a Site Improvement Grant in the amount of $8, for qualifying exterior façade improvement expenses, for the property located at 3315 Auburn Road. Furthermore, payment shall be made directly to the contractor, Meadowbrook Homes Inc. in the amount of $8,950.00, upon completion of the work being funded and approval by the Building Department that the work is acceptable by building code and local ordinances. Payment is subject to all outstanding taxes, assessments, and City utility bills being paid to the City and/or County by the building owner. Funds are available in TIF District A, Account No Supported by Goodhall. Yes: Dilland, Douglas, Goodhall, Hassett, Molnar, Stonehouse, Thornton No: none Motion carried Ms. Carroll introduced the memo dated June 5, 2012 regarding recommendation of the 2012 Sewer Rehabilitation Construction Services from the Department of Public Services. Mr. Harran was present to answer questions. He added that rehabilitation would be performed on Opdyke between South of Center and North of Featherstone. Mr. Dilland asked about the need for manhole rehabilitation. Mr. Juidici explained that the concrete would be treated or lined to prevent ground water from getting into the sewer. Mr. Dilland asked about the lifetime of the services. Mr. Harran stated that the sewer system was maintained every 3 years. Moved by Molnar to recommend to City Council approval of the 2012 Sewer Rehabilitation Construction Services to Superior Excavating, Inc. in the amount of $415,133.00; of which $28,875 is funded from TIFA-A account [ ], $6,647 is funded from TIFA-A account [ ], $268,755 is funded from TIFA-B account [ ], and $13,125 is funded from TIFA-D account [ ]. Supported by Thornton. Yes: Dilland, Douglas, Goodhall, Hassett, Molnar, Stonehouse, Thornton No: none Motion carried

18 Page 3 of 4 June 12, 2012 minutes Ms. Carroll introduced a memo dated June 5, 2012 requesting approval recommendation for North Opdyke Pathway Construction. Ms. Carroll introduced Mr. Grice to answer questions by the Board. Mr. Grice stated that this pathway construction was Phase I of II. The purpose of phase I is to improve the pathway from Featherstone and Walton. Phase II will complete the southern portion of Opdyke Rd. between Featherstone and Opdyke and will occur later this summer. Mr. Dilland asked if Phase I included the east side of Opdyke. Mr. Grice stated that the goal was to complete both sides and that the East side appears to be in good condition. Mr. Molnar asked the ballpark figure for the Phase II. Mr. Grice said approximately $560, Mr. Dilland asked if the City had worked with F. Allied Construction Company in the past. Mr. Juidici stated not in the past 8-10 years but he has worked with them for other communities and recommends them. Mr. Molnar asked how long the asphalt should last. Mr. Juidici stated besides cracks and sealing, approximately 20 years. There was some discussion about using plastics and considering soil conditions. Move by Goodhall to recommend to City Council the following: approval of the first phase of the Opdyke Pathway Construction (Featherstone to Walton) to be awarded to F. Allied Construction Co. Inc., in the amount of $365,558.71; approval of the OHM Scope of Construction Services in the not-toexceed amount of $67,500.00; approval for materials and testing services by Schleede Hampton Associates in the amount of $12,000.00; and authorize the TIFA Executive Director to approve the necessary change orders to bring the project to a successful conclusion. Funding is to be provided by TIFA B, Account No Supported by Thornton. Yes: Dilland, Douglas, Goodhall, Hassett, Molnar, Stonehouse, Thornton No: none Motion carried Ms. Carroll introduced a memo dated May 25, 2012 requesting approval of Memorandum of Understanding and Intent with Avondale Schools for the University Center Building project. Ms. Carroll informed the Board that a meeting with administrators of each of the colleges and universities and with Dr. Heitsch from Avondale Schools took place on Thursday, May 17 th and included City staff, Architect Glenda Meads, and Chairman Hassett. Since that time, each educational institution has designated a representative to be a part of a design team that will facilitate the renovation of the building. Due to the 2013 budget process and discussion of additional funding from the TIFA for the project, along with ongoing support for its operations, it is important that the Board formally acts on the Memorandum of Understanding and Intent which will then obligate us to the project s completion and ongoing operation. Details of the programs were asked about, as well as the operations of the building. Not all questions could be answered at this time due to having the first meeting only. But the questions asked were important questions that will be answered in the future as the process continues. Chairman Hassett gave positive feedback about the initial meeting and shared the excitement of the administrators about the project. Moved by Douglas to authorize the Executive Director to execute the Memorandum of Understanding and Intent by and between the Auburn Hills Tax Increment Finance Authority and Avondale Schools for the University Center Building project. Upon execution, the Executive Director shall forward a copy to Avondale Schools. Supported by Thornton. Yes: Dilland, Douglas, Goodhall, Hassett, Molnar, Stonehouse, Thornton No: none Motion carried

19 Page 4 of 4 June 12, 2012 minutes BOARD MEMBER COMMENTS Reanna Douglas stated that she had attended the Historical Society Meeting the evening before and Tyson Brown would like arrangements made to gain access to the Log Cabin to take photos. Ms. Carroll received Mr. Brown s phone number to make arrangements. Mr. Molnar told Ms. Douglas that he would like to join the Community Garden Committee. Chariman Hassett requested that the topic of the Garden be added to the next agenda so that plans can be firmed up on the project. There was discussion about wi-fi in the downtown. Chairman Hassett stated that Tyson Brown would like a tour of the Seyburn Mansion, in addition to the Log Cabin. Ms Carroll will make those arrangements. Ms. Carroll reminded the Board of the Log Cabin Ribbon Cutting Ceremony that will be held on Thursday, August 23, 2012 at 3:00 p.m. ANNOUNCEMENT OF NEXT MEETING The next regularly scheduled TIFA Board meeting is Tuesday, July 10, 2012 at 4:00 p.m. in the Admin. Conference Room at City Hall. ADJOURNMENT Moved by Thornton to adjourn the meeting at 4:40 p.m. Supported by Douglas. Yes: Dilland, Douglas, Goodhall, Hassett, Molnar, Stonehouse, Thornton No: none Motion carried Respectfully submitted, Reanna Douglas Secretary of the Board Karrie L. Marsh Recording Secretary

20 C ITY OF A UBURN H ILLS C ITY C OUNCIL A GENDA JUNE 1 8, 2012 A GENDA I TEM N O. 7 B. To: Mayor and City Council From: Peter E. Auger, City Manager; David B. Harran, Manager of Public Utilities Submitted: June 14, 2012 Subject: Motion Approve 2012 Sewer Rehabilitation Construction Services INTRODUCTION AND HISTORY The Department of Public Services is seeking City Council s approval of the 2012 Sewer Rehabilitation Construction Services. Please recall that on February 20, 2012, City Council approved the Scope of Engineering which included; project initiation, plan development, permits, and an evaluation of the bid. The proposed scope of construction consists of sanitary sewer rehabilitation to occur primarily in the TIFA-B District. In addition, sewer structure rehabilitation is planned in TIF Districts A and D, and other areas of the City. The intent of the project is to reduce the inflow and infiltration into the sanitary sewer system as well as improve the serviceability of the manholes and storm structures in the project area. OHM s scope of construction services and recommendation letter are provided for review. The services provided by OHM shall include construction engineering, observation, and contract administration in the amount of $54, Additionally, material testing services shall be provided in the amount of $4, Five (5) bids for construction services were received on Wednesday, May 30, 2012 and the tabulation is as follows: BIDDER LOCATION TOTAL BID AMOUNT Superior Excavating, Inc. P.O. Box 4290, Auburn Hills, MI $415, Macomb Pipeline Mound Rd., Ste 640, Sterling Heights, MI $511, Lanzo Construction 125 SE 5 th Ct., Deerfield Beach, FL $578, Diponio Simone Industrial Dr., Shelby Twp., MI $797, Inland Waters Pollution Control, Inc Michigan Ave., Detroit, MI $809, STAFF RECOMMENDATION TIFA Board of Directors ( ,) City Staff, and OHM has reviewed the project scope and bid tabulation, and recommends proceeding with Superior Excavating, Inc. in the amount of $415,133.00; of which $28,875 is funded from TIFA-A account [ ], $6,647 is funded from TIFA-A account [ ], $268,755 is funded from TIFA-B account [ ], $13,125 is funded from TIFA-D account [ ], $24,001 is funded from local streets account [ ], $6,277 is funded from major streets account [ ], and $67,453 is funded from sewer account [ ]. MOTION Move to award the bid of the 2012 Sewer Rehabilitation Construction Services to Superior Excavating, Inc., P.O. Box 4290, Auburn Hills, MI, in the amount of $415, In addition, approve the OHM Scope of Construction Services in the amount of $54, and materials testing services by Schleede Hampton Associates in the amount of $4,000.00; for an overall project cost of $473, Furthermore, to authorize the City Manager or his designee to approve any change orders necessary to bring project to a successful completion. I CONCUR: PETER E. AUGER, CITY MANAGER O:\CITY COUNCIL PACKET\JUNE 18\COVER MEMO Sewer Rehabilitation Construction Services.Doc

21 June 2, 2012 Peter Auger, City Manager CITY OF AUBURN HILLS 1827 N. Squirrel Road Auburn Hills, MI Regarding: 2012 Asphalt Sewer Rehabilitation Letter of Recommendation Dear Mr. Auger: On May 30, 2012 at 10:00 am, a total of five bids were received for the above referenced project. The three lowest bidders are as follows: Contractor Amount Superior Excavating, Inc. $415, Macomb Pipeline & Utilities Co. $511, Lanzo Lining Services, Inc. $578, The project scope consists of sanitary sewer pipe rehabilitation, sanitary manhole and storm sewer structure rehabilitation, as well as all necessary earthwork, cleaning and restoration in accordance with the plans and specifications. Superior Excavating, Inc., out of Auburn Hills, Michigan, is the low bidder for this project. They have over forty years of experience in underground utility installation and have completed numerous projects within the City limits both for the City and for developers. Based on our findings, we recommend award of this contract to them in the amount of $415,133.00, per the unit prices bid for the project. Digital files of this letter and a bid tabulation have been ed to your office. If you have any questions or require additional information, please feel free to contact this office. Sincerely, ORCHARD, HILTZ, & McCLIMENT, INC. Timothy J. Juidici, P.E. cc: Ron Melchert, Director of Public Services Terri Kowal, City Clerk Dave Harran, Manager of Public Utilities Plymouth Road Livonia, MI p. (734) f. (734)

22 C ITY OF A UBURN H ILLS C I TY C OUNCIL A GENDA DATE JUNE 18, 2012 A GENDA I TEM N O. 9 A. 1 To: Mayor and City Council From: Peter E. Auger, City Manager; Gary L. Barnes, Finance Director Submitted: June 8, 2012 Subject: Motion: Accept 2011 Financial Report & Plante Moran s Audit Reports INTRODUCTION AND HISTORY The audit of the financial statements of the City of Auburn Hills for the calendar year ending December 31, 2011 has been completed by Plante Moran. Representatives of Plante Moran will be present at the council meeting to provide an overview of the financial statements and their audit reports. The audited financial statements and Plante Moran s opinion statement are assembled in the City s Financial Report with Supplemental Information Year Ending December 31, In addition, Plante Moran will present a separate communications report (copy enclosed). Plante Moran s independent auditor s opinion is on page 5 of the City s 2011 Financial Report. This statement provides their independent opinion and states that the City s financial statements present fairly the financial position of all of the City s financial activities and funds, and that the financial statements are presented in conformity with generally accepted accounting principles. The communications report (letter dated June 7, 2012) includes three sections. Section I Includes comments and observations on the City s accounting principles; Section II includes information that current auditing standards require the auditors to communicate to the governance body; and Section III presents other comments aimed toward helping the City in areas such as internal control, accounting procedures, and operational efficiency. Section III also has updated local legislative and informational items. The City s Financial Report was completed on a timely basis and will be filed with the appropriate state agencies to satisfy annual fiscal year reporting regulations STAFF RECOMMENDATION The staff recommends the acceptance of the City s 2011 Financial Report, and the communications report as presented to the City Council by Plante Moran. MOTION Move to accept and approve the City s Financial Report with Supplemental Information for the year ending December 31, 2011 and the related communications report as presented by the City s independent auditors, Plante Moran. I CONCUR: PETER E. AUGER, CITY MANAGER O:\CITY COUNCIL PACKET\JUNE 18\COVER MEMO Financial Report.Doc

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45 MANAGEMENT'S DISCUSSION AND ANALYSIS CITY OF AUBURN HILLS As the management of the City of Auburn Hills, we offer readers of the City's Financial Report with Supplemental Information, this narrative overview and analysis of the financial activities of the City for the year ended December 31, We encourage readers to consider the following information in conjunction with the information presented in the City s financial statements. FINANCIAL HIGHLIGHTS The assets of the City of Auburn Hills exceeded liabilities at the close of the 2011 fiscal year by $174.1 million (net assets). Of this amount, $117.2 million is the investment in capital assets (net of related debt), $3.5 million are assets restricted for specific purposes and functions, while the remaining $53.5 million represents unrestricted net assets which may be used to meet the demand for resources for the ongoing functions of the City. The City s total net assets decreased during 2011 by $2.5 million. The net assets of the governmental activities decreased by $1.3 million, and the business-type activities experienced a decrease in net assets of $1.2 million. The net assets decrease of $1.3 million in the governmental funds is $676,000 higher than the preceding year when the net assets decreased by $607,000. The decline in the net assets of the business activities of $1.2 million in 2011 also represents a reduction from the 2010 fiscal year when net assets increased by $305,000. At December 31, 2011, the City's governmental funds reported combined fund balances of $26.2 million, a decrease of $813,000 from the December 31, 2010 fund balance of $27.0 million. The decrease is attributable to a $1.1 million decline in the City's property tax revenues from $18.4 million in 2010 to $17.3 million in The City responded to the expected decrease in tax revenues by reducing its operating expenses in governmental funds by approximately $1.9 million. Payroll and benefit costs contributed about $1.1 million to the cost savings with specific savings of $575,000 resulting from changes in the City's retirement programs. The City's transfers to other non-governmental funds increased in 2011 by $293,000, and its SRF loan proceeds related to the two Storm Water Management projects decreased by $640,000 from the prior year when the majority of the project work was completed. The total long-term debt of the City at December 31, 2011 is $14,191,167 which represents a decrease of $1,072,521 from the prior year balance of $15,263,688. The decrease is attributable to principal payments of $2,013,602 in 2011 with the 2009 Bond Series for the golf course ($1,230,000) and the Special Assessment debt for Brown Road ($600,000) composing the majority of the principal payments. The City incurred additional debt in 2011 of $941,082. The new debt related to the completion of the City's three SRF projects which increased debt by $233,645, and the City was assigned additional debt of $707,437 for its pro-rata share of the Oakland-Macomb Interceptor Drain project. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City of Auburn Hills' basic financial statements. The basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other required supplementary information in addition to the basic financial statements. Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City s finances in a manner similar to a private-sector business. The statement of net assets presents information on all of the City s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City s net assets changed during All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g., multi-year special assessments and other receivables not collected within sixty days of the end of the 2011 fiscal year). The government-wide financial statements distinguish functions of the City of Auburn Hills that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Auburn Hills include legislative, management and planning, public safety, streets, highways and public improvements, recreation and culture, health, welfare, and community development, and general support. The businesstype activities of the City include the Water and Sewer Departments and Fieldstone Golf Club, a municipal golf course. 6

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106 C ITY OF A UBURN H ILLS C ITY C OUNCIL A GENDA D ATE: JUNE 18,2012 A GENDA I TEM N O. 9 A.2 To: Mayor and City Council From: Peter E. Auger, City Manager; Gary L. Barnes, Finance Director Submitted: June 13, 2012 Subject: Amended 2012 Budget to meet GASB 54 Requirements INTRODUCTION AND HISTORY GASB 54 included several significant financial reporting changes that impacted the City for the first time in its financial report for the year ending December 31, The major changes in reporting included the following: Six governmental funds previously reported as separate funds were consolidated with the General Fund. The Major and Local Road funds and the Water and Sewer funds previously each a separate fund were consolidated into the Major & Local Road fund and the Water & Sewer fund. The Retiree Health Care fund, previously a separate governmental revenue fund, was changed to an internal service fund for financial reporting. The Accrued Sick and Vacation fund, previously reported as an internal service fund, has been eliminated. The former descriptions of the fund balances in governmental funds were expanded to five categories. Each category is determined based on the degree of restriction. The fund balance categories vary from a restricted fund balance which would result from an externally imposed limitation to an unassigned fund balance category which would have no impediments or limitations on the required spending. In order to comply with the requirements it is also important to begin to budget for each of these activities in the same manner as to how they have to be reported. As noted, the City did not finalize the changes to comply with GASB 54 until late in 2011 after the 2012 budget was adopted. The changes required by GASB 54 have been made to the City s financial system; however, the 2012 budget has not yet been adopted by the City Council in the format required by GASB 54. The changes required to amend the City s 2012 operating budget include the following: Total revenues and expenses at the fund level will be amended to include the funds that have been consolidated with another fund. Revenue and expense transactions between formerly separate funds that are now consolidated will be eliminated (thus reducing total revenues and expenses by the same amount). The attached schedule shows the original 2012 adopted budget, the required eliminations, and the new revised total revenue and expense for each fund after completing the required consolidations. The amended budget maintains the integrity of the original adopted budget by only eliminating an equal amount of the intradepartmental revenues and expenditures included in the original budget. STAFF RECOMMENDATION Staff is recommending the approval of the amended 2012 budget to ensure compliance with the reporting requirements of GASB 54. MOTION Move to approve the amended 2012 budget by fund level with total revenues of $50,729,109 and total expenditures of $62,732,858. I CONCUR: PETER E. AUGER, CITY MANAGER O:\CITY COUNCIL PACKET\JUNE 18\COVER MEMO Amended Budget For GASB.Doc

107 City of Auburn Hills Summary of 2012 Adopted Budget Revenues and Expenditures and Amended 2012 Budget Intrafund Admin/Interfund Transfer Funds/Divisions Revenue Expense Eliminations Eliminations Amended 2012 Budget Budget Budget Rev/(Exp) Rev/(Exp) Revenue Expense General Funds City Council $ 0 $ 224,682 $ $ $ 0 $ 224,682 City Manager 0 882, ,467 City Clerk 0 364, ,971 Assessor 0 682, ,452 Finance 0 481, ,113 MIS Department 0 509, ,882 Treasurer 0 327, ,771 Facilities 0 1,410,801 (120,768) 0 1,290,033 Comm Development-Bldg. Dep , ,326 Public Services Administration 0 748, ,893 Senior Citizens 0 477, ,663 Comm Development-Admin 0 455, ,211 Recreation 0 501, ,509 Parks and Grounds 0 1,420,436 (108,798) 0 1,311,638 Pension Board 0 48, ,568 General Administration 0 1,110,376 (722,000) 0 388,376 SMART Grant 0 49, ,682 Capital Improvements 0 5,000,000 (2,350,000) 0 2,650,000 11,889,151 15,519,802 2,080,242 9,808,909 12,218,236 Public Safety Fire Fund-Administration 3,725, ,897 (482,224) 379,673 Fire Fund-Prevention 0 277, ,253 Fire Fund-EMS 0 802, ,099 Fire Fund-Suppression 0 1,787,260 1,787,260 3,725,523 3,728, ,000 3,003,523 3,246,286 Police Fund-Administration 10,280,050 2,282,290 (1,368,452) 913,838 Police Fund-Communications 0 972, ,333 Police Fund-Investigations 0 1,372,074 1,372,074 Police Fund-Patrol 0 5,571,201 5,571,201 Police Fund-Technical Services 0 401, ,213 10,280,050 10,599,111 10,280,050 9,230,659 Department of Public Service Storm Water Management Fund 366, , , , ,725 Park Improvement Fund 69,716 58,484 50,000 19,716 58,484 Sidewalk Improvement Fund 456, , , , ,625 Street Improvement Fund 1,900,268 1,886,000 1,900, ,886,000 2,792,270 2,755, ,270 2,755,834 General Fund - Amended 2012 Budget $ 23,534,752 $ 27,451,015

108 City of Auburn Hills Summary of 2012 Adopted Budget Revenues and Expenditures and Amended 2012 Budget Intrafund Admin/Interfund Transfer Funds/Divisions Revenue Expense Eliminations Eliminations Amended 2012 Budget Budget Budget Rev/(Exp) Rev/(Exp) Revenue Expense Department of Public Service Sewer Fund $ 5,846,442 $ 5,574,000 $ 5,846,442 $ 5,574,000 Water Fund 7,053,858 6,559,311 7,053,858 6,559,311 Water & Sewer Fund - Amended 2012 Budget 12,900,300 12,133,311 Local Streets-DPS 1,380,441 1,362,685 1,380,441 1,362,685 Major Streets-DPS 1,307,610 1,296,235 1,307,610 1,296,235 Major & Local Roads Fund - Amended 2012 Budget 2,688,051 2,658,920 Police Special Revenue Funds Police Drug Forfeiture-State 2,500 1,500 2,500 1,500 Police Drug Forfeiture-Federal Police Grants & Donations 11,550 13,250 11,550 13,250 14,050 14,750 14,050 14,750 Community Development and General Support 0 0 CDBG Grant Fund 53,169 53,169 53,169 53,169 Economic Development Corp Fieldstone Golf Club 3,561,550 3,112,532 3,561,550 3,112,532 Downtown Parking 3, , Fleet Management 1,934,617 1,739,386 1,934,617 1,739,386 Tree Ordinance Fund 7,729 25,710 7,729 25,710 5,560,215 4,931,571 5,560,215 4,931,571 Other Funds Brownfield Authority 524, , , ,885 TIFA 85-A 1,086,712 7,154,106 1,086,712 7,154,106 TIFA 85-B 1,463,565 4,428,812 1,463,565 4,428,812 TIFA 86-D 776,525 1,779, ,525 1,779,450 METRO Act 58,106 10,000 58,106 10,000 Wayne Disposal-Oakland 235, , , ,000 Retirees Health Benefits 1,147,123 1,056,514 1,147,123 1,056,514 5,292,056 14,811,766 5,292,056 14,811,766 Debt Service Brown Road S/A Debt 739, , , ,525 Total Debt Funds 739, , , ,525 Total All Funds $ 55,881,351 $ 67,885,100 $ 50,729,109 $ 62,732,858 Total Expenditures Over Revenues $ (12,003,749) $ (12,003,749)

109 City of Auburn Hills Summary of 2012 Adopted Budget Revenues and Expenditures and Amended 2012 Budget Intrafund Admin/Interfund Transfer Funds/Divisions Revenue Expense Eliminations Eliminations Amended 2012 Budget Budget Budget Rev/(Exp) Rev/(Exp) Revenue Expense O\All\2012 Budget Book\12expensessummary.xlxs, 12 Amended GASB 54

110 C ITY OF A UBURN H ILLS C ITY C OUNCIL A GENDA J UNE 18, 2012 A GENDA I TEM N O. 9 B. To: Mayor and City Council From: Peter E. Auger, City Manager; Don Grice, Deputy Director, DPS Submitted: June 13, 2012 Subject: Approval Recommendation for North Opdyke Pathway Construction INTRODUCTION AND HISTORY Budgeted in the 2012 TIFA B, Account No is $500, for the design and installation of missing portions of pedestrian pathway along Opdyke between Featherstone and Walton Boulevard. This north section of the project (Walton to Featherstone) serves as the first phase of a two phase project. A second phase scheduled for later this summer will complete the southern portion of Opdyke between Featherstone and Auburn. Once completed, these two projects will provide a key pathway connection from the City s southern border at South Boulevard north to Walton Boulevard. On May 30, 2012 at 10:00am, two bids were received for the first phase of the project. The bids are as follows: Contractor Amount F. Allied Construction Co. Inc. $365, WCI Contractors, Inc. $467, Also included in this request is the approval of OHM s Scope of Construction Services for the project. OHM will provide construction oversight for the project based on a time-and-materials basis for the notto-exceed amount of sixty-seven thousand, five hundred dollars ($67,500.00). Lastly, approval for materials and testing services to be conducted by Schleede Hampton Associates in the amount of $12, A copy of the OHM Scope of Construction Services document is included in the packet for your review. STAFF RECOMMENDATION The low bidder, F.Allied Construction Co. Inc. out of Clarkston, Michigan, has been on operation for over forty years. They have completed similar projects in southeast Michigan with successful results. Based on our findings, the DPS and OHM are confident recommending the contract award to the low bidder F. Allied Construction Co. Inc. MOTION Move to approve as recommend by the TIFA Board of Directors the following: approval of the first phase of the Opdyke Pathway Construction (Featherstone to Walton) to be awarded to F. Allied Construction Co. Inc., in the amount of $365,558.71; approval of the OHM Scope of Construction Services in the not-to-exceed amount of $67,500.00; approval for materials and testing services by Schleede Hampton Associates in the amount of $12,000.00; and authorize the City Manager or his designee to approve any necessary change orders to bring the project to a successful conclusion. Funding is to be provided by TIFA B, Account No I CONCUR: PETER E. AUGER, CITY MANAGER O:\CITY COUNCIL PACKET\JUNE 18\Council Approval Recommendation For North Opdyke Pathway Construction.Doc

111 June 1, 2012 Peter Auger, City Manager CITY OF AUBURN HILLS 1827 N. Squirrel Road Auburn Hills, MI Regarding: Opdyke Pathway Featherstone to Walton Road Letter of Recommendation Dear Mr. Auger: On May 30, 2012 at 10:00 am, a total of two bids were received for the above referenced project. The bidders are as follows: Contractor Amount F. Allied Construction Co. Inc. $365, WCI Contractors, Inc. $467, The project scope consists of filling the gaps of pathway on Opdyke Road between Featherstone and Walton Road as shown on the attached map. F. Allied Construction Co. Inc. out of Clarkston, Michigan is the low bidder for this project. They have been in operation for forty years. They have satisfactorily completed similar projects throughout southeast Michigan, including recent work in Commerce Township and Orion Township. Based on our findings, we recommend award of this contract to them in the amount of $365,558.71, per the unit prices bid for the project. Digital files of this letter, the map, and a bid tabulation have been ed to your office. If you have any questions or require additional information, please feel free to contact this office. Sincerely, ORCHARD, HILTZ, & McCLIMENT, INC. Jessica Katers, P.E. cc: Ron Melchert, Director of Public Services Terri Kowal, City Clerk Don Grice, Deputy Director of Public Services Plymouth Road Livonia, MI p. (734) f. (734)

112 June 4, 2012 City of Auburn Hills 1500 Brown Road Auburn Hills, Michigan Attention: Mr. Ronald Melchert Director of Public Services Regarding: North Opdyke Road Pathway Construction Featherstone Rd. to Walton Blvd. Scope of Construction Services Dear Mr. Melchert: Outlined below is a Scope of Work for construction services to be provided by Orchard Hiltz & McCliment (OHM) for the above referenced project. PROJECT UNDERSTANDING It is our understanding that the City of Auburn Hills plans to move forward with the construction phase of the North Opdyke Road Pathway Construction (Featherstone Rd. to Walton Blvd.) for which bids were received on Wednesday, May 30, The proposed project consists of construction of pathway gaps along the two mile stretch of the Opdyke Road corridor and ADA upgrades along portions of the existing pathway. SCOPE OF SERVICE Construction Engineering / Observation Under this task the project team will observe the construction efforts on the project and assist with any necessary field changes to successfully complete the work. Specific work efforts include: Provide daily observation of work. Full-time inspection will be provided for all pathway construction operations, including grading for the path, aggregate base and asphalt/concrete installation, retaining wall construction, traffic signal upgrades and restoration. Produce daily field reports documenting construction activities and pay item quantities Plymouth Road Livonia, MI p. (734) f. (734)

113 Prepare and provide the Contractor with a list of required submittals and review shop drawings, construction schedules, materials certifications, and other submittals. Address Contractor s construction concerns and resolve conflicts with the executed contract specifications. Attend to Resident and Business Owner concerns throughout the project. Review contractor s progress on the project to ensure that the work is in compliance with the proposed schedule. Contract Administration Under this task, the project team will complete services necessary to administer the contract. Specific work efforts include: Coordination with the Contractor and City to execute the contract documents. Arrange and attend one (1) pre-construction meeting prior to the start of the project. Provide two (2) signed copies of the contract documents to the City, one (1) to the Clerk s office and one (1) to the DPS. Prepare monthly construction pay estimates and process contract change orders (if required). Request and collect contractor s declaration, contractor s affidavit, waivers from major suppliers and subcontractors, release of surety, and release from other public agencies for which permits have been obtained under this contract. SCHEDULE Based on the TIFA and Council meeting schedule, we anticipate that the project award would be approved at the June 18 th Council meeting and construction on the project would begin in July. The project is expected to be completed by October of this year. COMPENSATION The services outlined above will be performed on a time-and-materials basis for the not-toexceed amount of sixty-seven thousand five hundred dollars ($67,500.00). This amount is based on the assumptions listed below. The City will be invoiced for services on a monthly basis. The estimated budget breakdown is as follows: Construction Services $ 67,500 Materials Testing Services (Estimated) $ 12,000 FURTHER CLARIFICATIONS AND ASSUMPTIONS The above-listed scope of services was prepared with the following assumptions: Materials testing services will be provided by Schleede Hampton Associates under a separate contract and are not included in this scope of services. The estimated amount for this service is twelve thousand dollars ($12,000.00). The City will be responsible for all permit fees.

114 Should you find this agreement acceptable, please execute both copies and return one copy to us for our files. We look forward to providing professional services on this project. If you have any questions, please contact us. Sincerely, ORCHARD, HILTZ & McCLIMENT, INC. Jessica Katers, P.E. cc: Don Grice, Deputy Director of Public Works City of Auburn Hills North Opdyke Road Pathway Construction Featherstone Rd. to Walton Blvd. Construction Services Accepted By: Printed Name: Title: Date:

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