1471 Session ofthe 91h h - pontiac.mi.us · may retain the cash portion of the demolition bond to...

PONTIAC CITY COUNCIL FORMAL MEETING

September 1, 2016 6:00pm

1471h Session ofthe 91

h Council

It is this Council's mission "To serve the citizens of Pontiac by committing to help provide an enhanced quality of life for

its residents, fostering the vision of a family-friendly community that is a great place to live, work and play. "

Call to order

Moment of Silence or Invocation

Pledge of Allegiance

Roll Call

Authorization for excused absences for councilmembers

Amendments to and approval of the agenda

Approval ofMinutes

1. August 25, 2016

Departmental Head Reports

Subcommittee Oral Report

Community Announcements

Recognition of Elected Officials

Agenda Address

AGENDA ITEMS FOR CITY COUNCIL TO CONSIDER

2. Resolution for Budget Roll-over amendments 2016-2017 3. TIP A Deficit Elimination Plan

Public Comment

Mayor Report

Clerk, City Attorney and Council Closing Comments

Adjournment

August 25, 2016

Official Proceedings Pontiac City Council

1461h Session of the Ninth Council

A Regular Meeting of the City Council of Pontiac, Michigan was called to order in City Hall, Thursday, August 25, 2016 at 6:00p.m. by President Patrice Waterman.

Moment of Silence

Invocation - Kermit Williams

Pledge of Allegiance

Roll Call

Members Present: Carter, Holland, Pietila, Taylor-Burks Waterman, Williams and Woodward Mayor Waterman was present. Deputy Mayor Jane Bais-Disessa was present. Clerk announced a quorum.

16-224 Approval of the Agenda to move consent agenda items immediately following the approval of the minutes. Move by Council person Williams and supported by Councilperson TaylorBurks.

Ayes: Carter, Holland, Pietila, Taylor-Burks, Waterman, Williams and Woodward No: None Motion Carried.

16-225 Journal of August 18,2016. Moved by Councilperson Woodward and supported by Councilperson Carter.

Ayes: Holland, Pietila, Taylor-Burks, Waterman, Williams and Woodward No: None Motion Carried.

Special Presentation from our Sister City Kusatsu-Japan

Councilman Randy Carter left meeting at 6:13p.m.

16-226 Resolution for City Park Name Change. Moved by Councilperson Taylor-Burks and supported by Councilperson Pietila.

Whereas, The Friends of the Pontiac Parks Association recently made a presentation to the Pontiac City Council concerning various partnerships that have been created for park signs within the City of Pontiac; and, Whereas, Trinity Missionary Baptist Church has sponsored park signs for Fisher Street Park and Motor/Montana Park. Now, Therefore, Be It Resolved, The Pontiac City Council is in full support of a name change of the Stout Street Park to the Trinity Missionary Baptist Church Park.

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August 25, 2016

Ayes: Holland, Pietila, Taylor-Burks, Waterman, Williams and Woodward No: None Resolution Passed.

16-227 Resolution for Playground Equipment. Moved by Councilperson Taylor-Burks and supported by Councilperson Pietila.

Whereas, The Pontiac City Council received a letter from the Friends of the Pontiac Park Association concerning an unused park play scape up for donation from the City of Pleasant Ridge; and Whereas, The Friends of the Pontiac Park Association has researched and found a suitable location for this play scape equipment at North Kiwanis Park; and Whereas, North Kiwanis Park is in need of safe and usable play equipment; and Whereas, The City of Pleasant Ridge has agreed to deliver the unassembled structure; and Whereas, The Pontiac City Council agrees with the recommendation of the Friends of the Park Association. Now, Therefore, Be It Resolved, The Pontiac City Council is in full support of acquiring the play scape equipment as long as it is in safe and reusable condition and applicable to any state laws for the safety of all users of the play scape equipment.

Ayes: Holland, Pietila, Taylor-Burks, Waterman, Williams and Woodward No: None Resolution Passed.

Departmental Head Report- Deputy Mayor Jane Bias-Disessa

16-228 Amendment of Section (E) to add the following language after the word "home" of the Rehabilitation Agreement. Moved by Council person Pietila and supported by Council person Taylor-Burks.

e. A demolition bond shall not be required for a single family home or duplex of no more than two units, one of which shall be 100% homestead by the property owner, if the property owner has never taken advantage of this subsection and has been a resident of the City of Pontiac for the last five years and:

Ayes: Holland, Pietila, Taylor-Burks, Waterman, Williams and Woodward No: None Amendment Passed.

16-229 Amendment of Section ix to strike out existing language and add following language of the Rehabilitation Agreement. Moved by Councilperson Taylor-Burks and supported by Councilperson Pietila.

ix. Demonstrates that the property owner has the financial resources to pay for the estimated costs of renovation at the time that the agreement is signed. Evidence of financial resources may include paystubs, bank statements, or written evidence of other financing sources demonstrating the assets are available to complete the estimated cost of repairs;

Ayes: Holland, Pietila, Taylor-Burks, Waterman, Williams and Woodward No: None Amendment Passed.

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August 25, 2016

16-230 Ordinance for Rehabilitation Agreements. Moved by Councilperson Pietila and supported by Councilperson Taylor-Burks.

Ordinance No. 2338

ARTICLE VTI. REHABILITATION AGREEMENTS

The City of Pontiac ordains: Article VII, Section 42-241 shall be amended to read as follows:

ARTICLE VII. REHABILITATION AGREEMENTS

.~.~.::~.~.~ .. _g~.~.~.~.i.~!!~~~!! .. ~gr.~.~~.~.l.l.!.~.: ...................................................................................................................................................................................................................... . The Community Development Director, or any duly appointed designee, may enter into a rehabilitation

agreement with a property owner to rehabilitate condemned buildings. A rehabilitation agreement must

include the following:

(1) Property Maintenance inspection required. The property owner(s) shall apply to obtain a

property maintenance inspection of the premises/structure(s) from the City of Pontiac

Department of Community Development prior to the execution of the rehabilitation agreement,

which will result in the issuance of a property maintenance inspection report that will specify

all of the improvements and/or repairs required to bring the premises/structure(s) into

compliance with the applicable building code(s) and municipal ordinances, the report which

shall be incorporated into the rehabilitation agreement. The property owner shall pay the

appropriate fee for the property maintenance inspection.

(2) Payment of demolition bond.

a. The property owner must post a cash bond in the amount equal to the cost of the

demolition as determined by the Community Development Director, which will be based on

the average square foot demolition cost for the most recent demolition bid received and

awarded by the City.

b. For structures requiring a bond of more than $15,000.00, a cash bond shall be secured for

$15,000.00 and a cash or surety bond approved by the City for the remainder shall be secured

by the property owner and submitted to the City.

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August 25, 2016

c. The bond is fully refunded to the owner, without interest, upon the issuance of a

certificate of compliance for the subject property.

d. If the property owner fails to adhere to the terms of the rehabilitation agreement, the City

may retain the cash portion of the demolition bond to pay for demolition costs and/or cover

legal costs required to effect compliance with the terms of the surety bond.

e. A demolition bond shall not be required for a single family home or duplex of no more

than two units, one of which shall be 100% homestead by the property owner, if the property

owner has never taken advantage of this subsection and has been a resident of the City of

Pontiac for the last five years and:

i. Pays a non-refundable $100 application fee;

ii. Agrees in writing to have all improvements completed within 180 days of signing

the rehabilitation agreement;

iii. Agrees to occupy the house upon the issuance of a certificate of compliance for a

period of one year and applies for, receives, and maintains the property with a principal

residence exemption certificate;

IV. Signs a provision in the rehabilitation agreement that places a lien on the property

in the amount of the calculated demolition bond that will expire one year after the

certificate of compliance is issued if the property owner complies with subsection

(1)( e)(ii) of this section, and the amount of such lien will immediately be forfeited to the

City upon sale if the property is used for rental purposes during the first year;

v. Does not have an existing property rehabilitation agreement;

v1. Pays all outstanding property taxes on the parcel that are due to the Oakland

County Treasurer and the City of Pontiac or that are in the process of being returned to

the Oakland County Treasurer as delinquent;

vn. Is fully compliant with all provisions of the City's income tax ordinance;

vn1. Agrees as a provision of the rehabilitation agreement that all open construction

permits can be revoked by the City if the certificate of compliance has not been issued

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August 25, 2016

within the 180 days or posts a bond in the amount required by the ordinance at the time

of the revocation or cost to complete repairs;

ix. Demonstrates that the property owner has the financial resources to pay for the

estimated costs of renovation at the time that the agreement is signed. Evidence of

financial resources may include paystubs, bank statements, or written evidence of other

financing sources demonstrating the assets are available to complete the estimated cost

of repairs;

x. Shows proof of residency for the last five years;

XL The house remains unoccupied until such time that the certificate of compliance is

issued.

xn. The City shall not have incurred any demolition-related costs on the property.

(3) Permit application. Property owner(s) shall make application to the City for all required

building permits within seven days after execution of the rehabilitation agreement and all other

necessary permits within 30 days.

( 4) Schedule of rehabilitation. Property owner( s) shall rehabilitate and/ or repair said structure( s)

in a lawful manner in compliance with the rehabilitation agreement during the 180-day period after

making proper application and obtaining the requisite permits from the City.

(5) Inspections.

a. Property owner(s) shall allow the City to conduct any and all necessary inspections at a

mutually agreed-upon time between the parties.

b. Property owner shall be responsible for calling the Building Safety Division to schedule

all necessary inspections.

( 6) Property maintenance.

a. The exterior of the premises shall be kept free of all debris and trash.

b. Lawn and grass must be maintained in conformance with chapter 122, article III.

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August 25, 2016

c. Sidewalks adjacent to the property shall be kept free of all snow and ice in accordance

with the Code of Ordinances.

(7) Other Terms.

a. Recognition by the property owner that the owner will adhere to the provisions of this

article.

b. By execution of a rehabilitation agreement the property owner waives all his rights to

appeal.

c. Such other information that the Director of Community Development determines is

required to be included.

(8) Demolition expenses. No property shall be eligible for a Rehabilitation Agreement if the City

has incurred any demolition-related costs on the property.

Section 2. Severability. If any section, clause, or provision of this Ordinance shall be declared to be unconstitutional, void, illegal, or ineffective by any Court of competent jurisdiction, such section, clause, or provision declared to be unconstitutional, void, or illegal shall thereby cease to be a part of this Ordinance, but the remainder of this Ordinance shall stand and be in full force and effect. Section 3. Saving Clause. A prosecution which is pending on the effective date of this ordinance and which arose from a violation of an ordinance repealed by this ordinance, or a prosecution which is started within one (1) year after the effective date of this ordinance arising from a violation of an ordinance repealed by this ordinance and which was committed prior to the effective date of this ordinance, shall be tried and determined exactly as if the ordinance had not been repealed. Section 4. Repealer. All Ordinances or parts of Ordinances in conflict herewith are hereby repealed only to the extent necessary to give this Ordinance full force and effect. Section 5. Publication. The Clerk shall publish this Ordinance in a newspaper of general circulation. Section 6. Effective Date. This Ordinance shall be effective ten days after date of adoption by the City Council.

Ayes: Holland, Pietila, Taylor-Burks, Waterman, Williams and Woodward No: None Ordinance Passed.

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August 25, 2016

16-231 City of Pontiac Weight Restriction Ordinance and Truckers Map. Moved by Councilperson Taylor-Burks and supported by Councilperson Pietila.

Whereas, the proposed vehicle overweight ordinance will address various issues, various administrative issues; Whereas, the City of Pontiac has investigated the City Streets and found that there was not an existing truckers map, and; Whereas, the Department of Public Works has assessed the streets for acceptable weight limits and established allowable weights on City streets, and; Now, Therefore, Be It Resolved, that the Pontiac City Council, after review by the City Attorney and Executive Staff, adopts the Proposed Ordinance to amend various sections of Chapter 114, Article V and amend the City of Pontiac Trucker's Map.

Ordinance No. 2339 An ordinance to amend various sections of Chapter 114, Article V of the City of Pontiac Code of Ordinances.

The City of Pontiac ordains: Section 2. Severability.

Article V shall be amended to read as follows:

ARTICLE V. VEHICLE SIZE RESTRICTIONS

114-166 Applicability of article.

This article shall be operative upon all public streets and alleys within the city.

114-167 Vehicle and load; size restrictions.

(a) No vehicle shall exceed a total outside width, including load thereon of96 inches.

(b) No vehicle laden or unladen shall exceed a height of 13 feet 6 inches.

(c) No vehicle shall exceed a length of 40 feet. No combination of vehicles coupled together shall

exceed a total length of 60 feet.

(d) No operator shall use on a vehicle any appliance extending beyond the minimum width of the

vehicle proper.

(e) No vehicle shall carry thereon any load projecting more than three feet beyond the front nor more

than 13 feet to the rear of the bed or body of the vehicle.

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August 25, 2016

(f) Any person after obtaining a permit from the engineering department desiring to move any vehicle

of greater size than that permitted by this section shall make application to the chief of police, who

may lay out a route and specify the time of day of travel.

(g) No vehicle shall be driven or moved on any highway unless such vehicle is so constructed or

loaded as to prevent its contents from dropping, sifting, leaking or otherwise escaping from the

vehicle.

114-168 Maximum loads.

(a) No person shall operate any vehicle, trailer, or semitrailer or any combination thereof, when the

wheel and axle load of any such vehicle or unit of a combination of vehicles, with or without a

load, exceeds the schedule of weights allowed by the laws of the state, as set forth in MCL 257.722

of the Michigan Vehicle Code, as amended.

(b) In the event that any vehicle, trailer, or semitrailer or any combination thereof, when the wheel and

axle load of any such vehicle or unit of a combination of vehicles, with or without a load, does not

exceed the schedule of weights allowed by the laws of the state, as set forth in MCL 257.722 of the

Michigan Vehicle Code, but does exceed any gross vehicle weight restrictions as set forth in any

Resolution by Council under state law, then the owner or operator of such a vehicle shall be

responsible for a civil infraction violation, punishable by fines and costs as follows: 3 cents per

pound for each pound of excess load over 1,000 pounds when the excess is 2,000 pounds or less; 6

cents per pound of excess load when the excess is over 2,000 pounds but not over 3,000 pounds; 9

cents per pound for each pound of excess load when the excess is over 3,000 pounds but not over

4,000 pounds; 12 cents per pound for each pound of excess load when the excess is over 4,000

pounds but not over 5,000 pounds; 15 cents per pound for each pound of excess load when the

excess is over 5,000 pounds but not over 10,000 pounds; and 20 cents per pound for each pound of

excess load when the excess is over 10,000 pounds. If the court determines that the motor vehicle or

the combination of vehicles would be lawful by a proper distribution of the load upon all of the

axles of the vehicle or the combination of vehicles, but that 1 or more axles of the vehicle exceeded

the maximum allowable axle weight by more than 1,000 pounds but less than 4,000 pounds, the

court may impose a misload fine of $200.00 per axle.

114-169 Width, height and length.

No person shall operate any vehicle, trailer or semitrailer, or combination thereof when the maximum

width, height and length of such vehicle or combination thereof, or unit of a combination of vehicles, and

of the load thereon or therein shall exceed the limits fixed by the provisions of sections 717 and 719 of

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August 25, 2016

the Michigan Vehicle Code as amended, unless a special permit be issued as provided in section 725 of

the state vehicle code.

114-170 Director of public worl{S and services and/or law enforcement official(s) to enforce.

(a) The director of public works and services and/or law enforcement official(s) shall be charged

with the enforcement of this article and regulations properly adopted by him hereunder.

(b) For purposes of enforcement of this article, specified agents and/ or employees of the department of

public works and services and/or law enforcement official(s) shall have the power to issue

appearance tickets as authorized by law in accordance with city Resolution No. 643,. It shall be

their duty to enforce provisions of this article within the corporate limits of the city.

(c) When engaged in the enforcement of this article, the director of public works and services and his

agents and employees and/or law enforcement official(s) and his agents or designees, shall

bear some outward, visible insignia of their office, which shall be readily discernible to all persons

with whom they might come in contact.

114-171 Weighingstations.

The director of public works and services of the city and/or law enforcement official(s) shall be

authorized to establish weighing stations, which stations may be located at such places as may, from time

to time, be designated by the director of public works and services and/or law enforcement official(s)

and which, when so designated, are declared to be public weighing stations for the city.

114-172 Authority to stop vehicles.

(a) The director of public works and services, and his agent and employees, when engaged in the

enforcement of this article, or any law enforcement officer of the city, may at any time require a

vehicle to stop and to be weighed and measured for purpose of permitting the officer to ascertain

whether the vehicle or part thereof is in conformity with the provisions of this article and the

State's Motor Vehicle Traffic Code.

(b) A driver or owner of a commercial vehicle with other vehicles or trailers in combination, a truck or

truck tractor, a truck or truck tractor with other vehicles in combination, or any special mobile

equipment who fails to stop at or bypasses any scales or weighing station is guilty of a

misdemeanor

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August 25, 2016

114-173 Unloading excess; storage on public highways.

(a) Whenever the officer or agent, upon weighing a vehicle and load detennines that the weight is

unlawful, the officer or agent may require the driver to stop the vehicle in a suitable place and

remain standing until such portion of the load is shifted or removed as may be necessary to reduce

the gross axle load weight of such vehicle to the limit pennitted. Any material so unloaded shall be

cared for by the owner or operator of such vehicle at the risk of such owner or operator.

(b) If it shall be necessary to store the materials within any portion of a public highway, the materials

shall be stored for not to exceed eight hours, and shall within such period be completely removed

from such location by the owner or operator. In the event the materials are not so removed, they

shall be removed at the expense of the city, and any charges of such removal shall be paid by the

owner or operator of such vehicle or the owner of such materials. The city shall have a lien upon

such materials in its possession until the removal charges are fully paid.

114-174 Temporary special permits to exceed restrictions.

The director of public works and services is authorized to temporarily pennit the maximum limits set

forth in this article to be exceeded. Such exceeding of weight shall be authorized only in cases when the

condition of the streets over which such loads are to be carried is such that the streets will not be

damaged thereby.

114-175 Special restrictions.

(a) The director of public works and services is authorized, at such times, and under such conditions,

to impose for any such street more restrictive limits as to weight or load of vehicles than are

specified under provisions of the state law. If the director of public works and services shall reduce

load limits on any such street, his order shall be effective only when he shall post at both ends of

the street, and at all intersection entrances thereto, suitable signs of such type and size as will

adequately advise all persons using the street of the existence of load limits thereon, pursuant to the

Michigan Uniform System of Traffic-Control Devices Manual. When any street shall be so posted,

no person shall drive or operate any vehicle thereon which shall exceed the size, weight and load

limits so established. If the orders of the director of public works and services imposing load limits

thereon are to be in effect for more than 15 days, the load limits shall be approved by resolution of

the City Council.

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August 25, 2016

(b) The director of public works and services and/or law enforcement of:ficial(s) is authorized to

prohibit trucks from driving on local streets. Provided that such vehicles may be operated upon or

within local streets for the shortest possible distance when necessary to serve any property located

within or upon or contiguous to the above streets or where it is necessary to cross any of the streets.

Appropriate signs banning truck traffic shall be erected on these streets so as to advise all persons

using them of the existence of the truck ban.

114-176 Exemptions.

This article shall not apply to fire apparatus or vehicles operated by the department of public works and

services or to a vehicle operated under the terms of a special permit issued under section 114-17 4.

114-177 Penalties.

In addition to what is stated in sections 114-167, 114-168 and 114-169, each and every violation

classified as a criminal violation by the corresponding state or federal law shall likewise be classified as

a criminal misdemeanor in this chapter, punishable upon conviction by a fine not to exceed $500.00

and/or 90 days. Each and every violation classified as a civil infraction by the corresponding state or

federal law shall likewise be classified as a civil infraction in this chapter, punishable upon a finding of

responsibility by a fine not to exceed $500.00; provided, however, that fines for vehicles violating the

maximum loading requirements shall not be subject to the foregoing $500.00 maximum limitation, but

shall be determined according to the formula set in either Section 114-168 or MCL 257.724, as

incorporated herein.

114-178-114-185 Reserved.

Section 2. Severability. If any section, clause, or provision of this Ordinance shall be declared to be unconstitutional, void, illegal, or ineffective by any Court of competent jurisdiction, such section, clause, or provision declared to be unconstitutional, void, or illegal shall thereby cease to be a part of this Ordinance, but the remainder of this Ordinance shall stand and be in full force and effect. Section 3. Saving Clause. A prosecution which is pending on the effective date of this ordinance and which arose from a violation of an ordinance repealed by this ordinance, or a prosecution which is started within one (1) year after the effective date of this ordinance arising from a violation of an ordinance repealed by this ordinance and which was committed prior to the effective date of this ordinance, shall be tried and determined exactly as if the ordinance had not been repealed.

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August 25, 2016

Section 4. Repealer. All Ordinances or parts of Ordinances in conflict herewith are hereby repealed only to the extent necessary to give this Ordinance full force and effect. Section 5. Publication. The Clerk shall publish this Ordinance in a newspaper of general circulation. Section 6. Effective Date. This Ordinance shall be effective ten days after date of adoption by the City Council.

Ayes: Holland, Pietila, Taylor-Burks, Waterman, Williams and Woodward No: None Ordinance Passed.

President Patrice Waterman left the meeting at 6:55p.m.

16-232 Motion to extend Rehabilitation Motorian until September 41\ 2016 which is the

effective date of the Ordinance. Moved by Council person Woodward and supported by Councilperson Taylor-Burks.

Ayes: Holland, Pietila, Taylor-Burks and Woodward No: None Motion Carried. Councilman Kermit Williams was absent during the vote.

16-233 Council postponed Resolution for Budget Roll-over Amendments 2016-2017 for one week. Moved by Councilperson Holland and supported by Councilperson Taylor-Burks.

Ayes: Holland, Pietila, Taylor-Burks, Williams and Woodward No: None Motion Carried.

Mayor Deidre Waterman Reported.

City Clerk Sherikia L. Hawkins, Councilman Mark Holland, Councilwoman Doris Taylor-Burks, Councilman Kermit Williams and Pro-Tem Mary Pietila made closing comments. Councilman Don Woodward had no closing comments.

Councilman Mark Holland left meeting at 8:04p.m.

Pro-Tern Mary Pietila adjourned the meeting at 8:26 p.m.

SHERIKIA L. HAWKINS CITY CLERK

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DATE:

TO:

FROM:

CC:

MEMORANDUM

August9,2016

Jane Bais DiSessa, Deputy Mayor

City of Pontiac Finance Director

Nevrus P. Nazarko, CPA 47450 Woodward Avenue Pontiac, Michigan 48342

Phone: 248.758.3118 Fax: 248.758.3197

Nevrus P. Nazarko, CPA Finance Director

SUBJECT: Budget rollover amendments 2016-17

Mrs. DiSessa,

As we close· the books on the 2015-2016 fiscal year, we have realized that some of the appropriations approved for thatJiscal year have not been spent. After discussing the items not completed with the . department heads, we are proposing to amend the 2016-2017 budgets to include these rollover items that were not completed in the first fiscal year. These amendments will increase the total appropriations for the respective funds as follows: General Fund: $525,767 Major Street Fund: $136,201 Local Street Fund: $$825,897 Senior Activities Fund: $439,640 Cable Fund: $7 50,000 Capital Improvement Fund: $1,540,046 Since these are projects that were fully funded for in the previous fiscal year te increased appropriations for the current fiscal year will use the unused fund balance from the 2015-2016 fiscal year.

Below are the details· of these rollover appropriations and their impact on the fund balance: ·

101 -General Fund

Appropriations

City Council

Other Services and Charges

Finance Administration


Department of Public Services - Engineering


Capital Outlay

Community Development


Park Grounds Maintenance


Total Appropriations

Projected Ended Fund Balance- FY 16

Budgeted Revenues- FY 17

Budgeted Appropriations- FY 17

Rollover budget amendment proposed- FY 17

Amended Appropriations - FY 17

Projected Fund Balance- FY 17

Increase (Decrease)

39,952.00

9,762.00

11,798,389.57

31,218,034.00

(32,77 4,480.00)

(525,767.00)

(33,300,247.00)

9,716,176.57

64,000.00

106,000.00

125,000.00

181,053.00

525,767.00

.__ ________ _:__2...:__0_2 _-.:..:.M.:..:.a~jo:..:.r..::.S...:__tr..::.e..::.e.::.:ts...:.F...:..u...:.n...:.d _________ __jl -Appropriations

Routine Maintenance - Roads



Budgetecj Revenues- FY 17

Increase (Decrease)

136,201.00

4,761,950.93

4,789,588.00


Rollover budget amendment proposed ~ FY 17

Amended Appropriations- FY 17


(8,849,629.00)

(136,201.00)

(8,985,830.00)

565,708.93

203 - Local Streets Fund

Appropriations Increase (Decrease)

Non-Motorized

Other Services and Charges 75,000.00

Construction Road & Bridges

Other Services and Charges 383.00

Capital Outlay 223,181.00

Routine Maintenance - Roads

Supplies 7,362.00


Traffic Control


Total Appropriations 825,897.00

Projected Ended Fund Balance- FY 16 3,362,323.88

Budgeted Revenues- FY 17 2, 701,951.00

Budgeted Appropriations- FY 17 (2,704,487 .00)

Rollover budget amendment proposed - FY 17 (825,897.00)

Amended Appropriations- FY 17 (3,530,384.00)

~ ·:. ~-"·

Projected Fund Balance- FY 17 2,533,890.88

212 -Senior Actvities Millage Fund

Appropriations

Ruth peterson Senior Citizen Center

Capital Outlay

Bowen Senior Citizen Center

Capital Outlay

Increase (Decrease)

172,110.00





Rollover budget amendment proposed - FY 17


Projected Fund Balance - FY 17

Appropriations

Cable

Capital Outlay

231 - Cable Fund


Budgeted Revenues - FY 17


Rollover budget amendment proposed - FY 17



982,190.21

298,116.00

(315,550.00)

(439,640.00)

(755,190.00)

525,116.21

Increase (Decrease)

439,640.00

750,000.00

1,063,373.24

152,000.00

(134,900.00)

(750,000.00)

{884,900.00)

330,473.24

445 - Capital Improvement Fund

Appropriations

Building Maintenance

Capital Outlay

Police & Sheriff

Capital Outlay

Construction - Roads and Bridges

Capital Outlay

Pubilc Works Operations

Increase (Decrease)

279,205.00

125,000.00

1,075,841.00

Capital Outlay





Rollover budget amendment proposed- FY 17



60,000.00

1,540,046.00

2,685,707.59

1,629,155.00

(1,966,200.00)

(1,540,046.00)

(3,506,246.00)

808,616.59

If the council agrees with the renewal here is a resolution needed to pass:

Whereas, the City of Pontiac timely approved the 2016-2017 budget on June 9, 2016, and}

Whereas, the Mayor an_d Finance Director have reviewed the department heads request for rollover of unused appropriations in the previous fiscal year, 20 15-2016, and;

Whereas, Mayor is proposing to the City Council to increase the appropriations for the current fiscal year 2016-2017 for the funds and amounts described above as necessary to complete the projects that the City Council had fully funded and approved in the last fiscal year but were not timely expended

Now Therefore, Be It Resolved, that the City Council of the City of Pontiac approves the budget rollover amendments for the fiscal year 2016-20 17 as presented above.

MEM City of Pontiac

Finance Director Nevrus P. Nazarko, CPA 47450 Woodward Avenue Pontiac, Michigan 48342

Phone: 248.758.3118 Fax: 248.758.3197

To: Jane Bais DiSessa-Deputy Mayor

From: Nevrus Nazarko, Finance Director

Date: August 29, 2016

Re: TIP A Deficit Elimination Plan explanation

As the result of GASB 70 implementation starting with the fiscal year that ended on 06/30/2014, our combined TIFA 2 and TIFA 3 funds have ended these fiscal years (06/30/2014 and 06/30/2015) with a deficit. The Michigan Department of Treasury requests that for each of the governmental funds ending on a deficit for any given year, the City should prepare a deficit elimination plan and send it to the Department of Treasury for their approval.

I am attaching the response that I had sent to the treasury for the year ending on 06/30/20 15) and they have requested that the City Council and RTAB formally approve the Finance Directors explanation of the issue.

I am attaching the details of my explanation with the Treasury and if the City Council agrees here is the resolution to be approved:

ORANDUM City of Pontiac

Finance Director Nevrus P. Nazarko, CPA 47450 Woodward Avenue Pontiac, Michigan 48342

Phone: 248.758.3118 Fax: 248.758.3197

WHEREAS, the TIFA funds as of 06/30/2015 have incurred a deficit as the result of the recording of the financial guarantee to the General Fund per GASB 70, and,

WHEREAS, this deficit is projected to accumulate and increase for the foreseeable future, and

WHEREAS, the finance director has responded to the Michigan Department of Treasury's request for an explanation on the deficit, and

WHEREAS, THE Michigan Department of Treasury has requested that such explanation be presented to the Pontiac City Council for their approval, therefore

BE IT RESOLVED, that the Pontiac City Council acknowledges and accepts the finance director's response to the State of Michigan on the TIFA deficit for the year ended 06/30/2015

August 29, 2016

Mr. Harlan Goodrich Manager Municipal Finance Section Michigan Department of Treasury P.O. Box 30728 Lansing, Ml48909-8228

Dear Mr. Goodrich,

Cmt OF PONTIAC

DEPARTMENT OF FINANCE 47450 Woodward Avenue Pontiac, Michigan 48342

Telephone: (248) 758-3118 Fax: (248) 758-3188

In response to your e-mail dated August 1, 2016 and included below, the following explanation addresses your

questions. After you have had the opportunity to review, we can follow up with a· phone call to answer any other

questions you may have.

The City did record a financial guarantee liability for the portion of the debt service that the General Fund is

assisting in paying in the amount of $1,349,570. This liability is part of the Accounts payable and other accrued

liabilities balance of $1,853,500 on page 33 of the 6/30/15 financial statements.

The TIFA Fund, as of 6/30/15, is required to record the financial guarantee liability under GASB 70, Accounting and

Financial Reporting for Non-exchange Financial Guarantees. The TIFA Fund does not have a current revenue

stream to repay the General Fund which has resulted in the TIFA deficit. The TIFA Fund is expected to rely on

assistance from the General Fund to pay debt service for at least the next five years and possibly through the life

of the bonds. The TIFA's liability to the General Fund will continue to grow each year as the General Fund

transfers cash each year to assist with the debt service payments.

Per GASB 70, the TIFA's financial guarantee liability to the City cannot be removed from the TIFA Fund until the

obligation is paid or is legally released. Per modified accounting rules, the General Fund has not recorded a

receivable for the amount TIFA is required to repay the General Fund, so there is no expected future cash flow to

the General Fund expected on the City's books. However, the General Fund has included the required

contributions to cover the TIFA debt expense in its fiscal year 2015, 2016, 2017, and 2018 budgets and plans to

continue budgeting for this contribution until the debt is paid off.

We have included Schedule 1 estimating the TIFA deficit for the next five years. As previously mentioned, this

deficit will continue to exist until the TIFA tax revenue becomes sufficient to pay the current debt service each

year and the accumulated financial guarantee liability.

Schedule 2 contains the City resolution with the requirement for TIFA to reimburse the City for debt service

payments made on TIFA's behalf.

Please also see pages 42, 53, and 54 and 55 of the 6/30/15 financial statements for more information on the financial guarantee.

Please let me know if you have any additional questions or need further clarification on the issues.

Sincerely,

Nevrus P. Nazarko, CPA Finance Director

City of Pontiac

TIFA Deficit Projection

6/30/2014-6/30/2021

TIFAs Combined Actual Actual Actual Projected Projected Projected Projected Projected

6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Property Tax Revenue 1,044,813 1,185,809 1,312,278 1,347,163 1,390,097 1,434,319 1,479,867 1,526,781 Other Revenue 555,812 619,266 95,387 38,000 38,000 38,000 38,000 38,000 Transfer in from General Fund for Debt Service 775,001 574,569 928,410 957,050 911,866 870,444 820,496 775,420

Total revenue 2,375,626 2,379,644 2,336,075 2,342,213 2,339,963 2,342,763 2,338,363 2,340,201

Debt Service (2,336,750) (2,342,200) (2,336,075) (2,342,213) (2,339,963) (2,342,763) (2,338,363) (2,340,201) [1] Financial Guarantee Expense (775,001) (574,569) (928,410) (957,050) (911,866} (870,444) (820,496) (775,420)

Transfer to General Fund to repay GASB 70 liability

Total expense (3,111,751) (2,916,769) (3,264,485) (3,299,263) {3,251,829) (3,213,207) (3,158,859) (3,115,621)

Rev In Excess of (Less than) Exp (736,125) (537,125) (928,410) {957,050} (911,866) (870,444) (820,496) (775,420)

Beginning fund balance (deficit) 8,201 {727,924) (1,265,048) (2,193,458) (3,150,508) (4,062,374) (4,932,818) (5,753,315)

[2] Ending fund balance (deficit) (727,924) (1,265,048) (2,193,458) (3,150,508) {4,062,374) (4,932,818) (5,753,315) (6,528,735)

Cumulative GASB 70 liability (775,001) (1,349,570) (2,277,980) (3,235,030) (4,146,896) {5,017,340) (5,837,836) (6,613,256)

[1] The TIFA is required to repay the General Fund when future revenue becomes available. Per GASB 70 the TIFA reports the cumulative amount due to the General Fund as a liability. TIFA does not have a current financial resource available to relieve this liability which is resulting in a TIFA Fund deficit

[2] Deficit calculated per audited financial statement (Numbered Letter 2014-1)

RESOLUTION APPROVING ISSUANCE OF TAX INCREMENT REVENUE REFUNDING BONDS BY THE CITY OF PONTIAC

TAX INCREMENT FINANCE AUTHORITY, PLEDGING LIMITED TAX FULL FAITH AND CREDIT AND DISTRIBUTABLE STATE AID TO PAYMENT OF SUCH BONDS AND AUTHORIZING CERTAIN FILINGS WITH THE MICIDGAN DEPARTMENT OF TREASURY

City of Pontiac

County of Oakland) Michigan

Minutes of a regular meeting ofthe City Council of the City ofPontiac, County of I

Oakland, Michigan (the "City"), held in'said City on November 29, 2007 at 7:00 o'clock p.m., Eastern Standard Time.

PRESENT: Council Members -Bowman, Hansen, Jones, McClellan, E. Seay, M. ~eay, Sh~emaker \

ABSENT: Council Members- None . \ '

The following preamble and resolution were offered by Council Member Hansen and

supported by Council Member E. Seay:

WHEREAS,: on Novethber 15, 2007 the City of Pontiac Tax Increment Fin;;mc.e .: .

' . . . ' . . . ' . ' . . ~ ~ . . . . . . . , ' - .

Authority (the "Authority") adopted two separate bond authorizing resolutions{together,

the "Authority's Resolutions") requesting that the City Council approve the Authority's

issuance of(i) not to exceed $15,000,000 of its Tax Increment Revenue Refunding Bonds -------.-. ·--.. ··-·-·-··- --·····----- ·-------

(General Obligation Limited Tax -Developmen~ Area 2)~ Series 2007 (the ''Development

Area 2 Refunding Bonds',) and (ii) not to exceed $35,000,000 of its Tax Increment

Reve~ue Refunding Bonds (General Obligation Limited Tax -Developntent Area 3),

I Series 2007 (the "Development Area 3 Refunding Bonds," together with the

Development Area 2 Refunding Bonds, the ('Refunding Bonds"), and in conjuncti~n

therewith, requesting that the City pledge it's limited tax full faith and credit and

distributable state aid payments the City is entitled to receive under Act 140, Public Acts

of Michigan, 1971, as amended ("Distributable Aid" and together with-' the City's limited

tax pledge, the "Secondazy Security'') as secondary security for the payment of debt

service on the Refunding Bonds; and

WHEREAS, the Refunding Bonds are being issued by the Authority to achieve

savings on its debt service payments on certain outstanding bonds issued by the Authority

pursuant to Act 450, Public Acts of Michigan, 1980, as amended ("Act 450") (the "Prior

:B'onds"), the proceeds of which' were used ~0 :fimince certain'• public improvement

infrastructure projects in the Authority's Development Area No. 2 and Development Area

No.3 in the City; and

WHEREAS, the Prior Bonds for each Develop:rn,ent Area ~e secured by and are ' '

payfible ~olely .. frotn ·taX· increme~t revenues generated~ each ·Development· Are~ a~ '' . ' ~ ' ' .

defined in Act 450 (the "T~ Increments"); and

-yv;;:!.ffiREAS, the Authori't_f mtends to accomplish the :reft.l!lding of the Prior Bonds

by seiliii:"g llie Refuiidfug Bonds to ilie Michigan Mmrlcipal B011d Authority (the

''1v.llv1BA") through a negotiated sale pursuant to the provisions of Act No. 227, Public ' ' .

Acts ofMichlgan ·1985, as amended ("Act 227"); and

WHERBASj subject to its approval, 11MBA is willing to purchase the Refunding . '

Bonds, provided that the Refunding Bonds have a minimum investment grade; ~d to

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assure that the Refunding Bonds have a minimum investment grade, .MMBA will require

the Authority to pledge Tax Increments as primary security for repayment of debt service

011 the Refunding Bonds and further require that the City pledge the Secondary Security

as secondary security to pay the debt service on the Bonds, pursuant to Act 227; and

WHEREAS, the City is willing to pledge the Secondary Security as credit

eribancement for the Refunding Bonds, provided that the Authority agrees to pay the City

the net savings from the refunding of the Prior Bonds as a fee for the pledge of the

Secondary ~ecurity and agrees to reimburse the City for any amounts o!'the debt service

on the Refunding Bonds the City is required to pay for as long as the Refunding Bonds

are outstanding; and

WHEREAS, under the Authorizing Resolutions, the Authority has agreed to pay

the City the credit enhancement fee from proceeds of the Refunding ·Bonds and

covenanted to reimburse the City from :future Tax Increments or other legally available

funds for any de.bt 'service payments ~~· City l.s r~qt#re~ to make ·on. the Refunding.: . . . '

.Bonds; and

-wHEREAS, Section 15(2) of Act 450 provides that tb:e Cil:"IJ may, by :majority

vote of' the C1ty Connell, pledge rts full fmfl:f and credit for the payment of fue p1b:rcipa:l of

and inter.est on the Authority's Refunding Bonds; and

WHEREAS, prior to issuance of the Refunding Bonds the Authority and the City

must make application, to pay the fees, if any, and receive qualified status or prior

approval of such obligations from the 1vficbigan Department of Treasury as provided in

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Section 302 of Act 34, Public Acts of Michigan, 2001, as amended ("Act 34").

NOW, THEREFORE, BE IT RESOLVED TJ?AT:

1. The City hereby approves of the issuance by the Authority of the

Development Area 2 Refunding Bonds in a maximum principal amount not to e:xqeed

$15,000,000 and the Development Area 3 Refunding Bonds in a maximum prin9ipal

amount not to exceed $35,000;000. Pursuant to Section 15(2) of Act 450 the City hereby

pledges its limited tax full faith and credit to the payment of debt servic~ on the Bonds

and pursuant to Section 23 of Act 227, . the City hereby pledges its Distributable Aid as

additional security to pay the debt service on the Bonds.

2. · 1n connection with the issuance by the City of its $21,940,000. original

principal amount General Obligation Fiscal Stabilization· Bonds (Limited Tax), Series

2006 (the "Prior D~A Bonds"), the City pledged its Distributable Aid as additional

security to pay the debt service on the Prior DSA Bonds un,d~r a Trust ,Agreement, dated

as_ of Fe~ruary 1, 2096 ~the :"Trust A~eeme~f') among tht: City,· U.:?:· .Bimk:.Nati~nal

Assoc~ati?n, as trustee (the "Trustee") and the State Treasurer. To effectuate the pledge

ofDistr:ibn~ble Aid to secure the ~efW1ldfug Bonds~ fue Tmst Agreement V~lill hav~ to be

amended and restated to cover the Re:i:mldilig Bonds and w add the :Authority as a: pruty .

. The pledge arid lien on Distributable Aid in favor of the Re:fun~g Bonds shall be

.on a subordinate basis to the lien on Distributable Aid in favor of the Prior DSA Bonds

~d any future obligations of the City on parity th~rewith. All Refunding Bonds s4all be

equally and ratably seemed on a parity basis by a subordinate lien on Distributable Aid.

'fhe City reserves the right under the Trust Agreement as amended and restated (the

''Amended and Restated Trust Agreemenf') to make additional pledges or assignments of

Distributable Aid on a·parity or subordinate basis with the pledge of Distributable Aid

securing the Prior DSA Bonds and Refunding Bonds, as security for current or future

obligations ofthe City.

3. The Mayor and the Finance Director or either of· them is authorized to

negotiate and approve the fonn of and to execute the Amended and Restated Trust

Agreement for and on behalf of the City .. The· mechanics for the payment by the City of

• any amounts required to be paid pursuant to the City's pledge of the Secondary Security

shall be specified :in the Amended ~d Restated Tnist Agreement

4. In the event that the City pays for any insufficiency of th~ Debt Retirement

Funds established under the Authority's Resolutions for the Refunding Bonds to pay debt

service on the Refunding .Bonds, the City expec~ and the Authority shall be obligated to

reimburse the City, from -future Ta.X Incremet).ts' or other. legal,Iy available .funds for Slich · ' ' . .

payment.

5. The :Mayor, the Finance Director~ the Treasw:er C\JJ.J.i the City· Clerk or either

actions, perform any and ·all acts and execute any and all documents that shall be

required, necessazy or desirable to implement this Resolution, including approving of the

final terms, principal ~Ol;lllts and other terms of the Refunding Bonds at the time of the

sale thereof in order to :finally determine the scope of the City's pledge of the Secondary

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security.

6. The Mayor and/or the Finan~e Director ate authorized to file applications

with and to pay the related fees, if any, to the Michigan Department of Treasury at their

discretion under Act 34 to obtain qualified status to issue obligations. or full Treasury

approvals as necessary to implement the sale, delivery and security for the Refunding

Bonds, and as required by the Michigan Department of Treasury and Act 34. The Finance

Director is authorized and directed to pay any post closing filing fees required by Act 34

or the Agency Reporting Act to the Michigan Department of Treasury or other specifi~d

agency, as a cost of issuance or from other legally available hinds.

7. All resolutions ~-and paqs of resolutions insofar as 'they conflict with the

provisions of this Resolution be and the same hereby are rescinded.

8. This Resolution shall take effect immedhitely upon its adoption by the City

CounciL

AYES: Council Members- Hansen, Jones, McClellan, E. Seay, Shoemaker

NAYS: Council Members -Bowman, M. Seay

RESOLUTION DECLARED ADOPTED.

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I hereby certify that the foregoing is a true and complete copy of a resolution

adopted by the City Council of the City of Pontiac, County of Oakland, State of

Michigan, at a regular meeting held on November 29, 2007, and that said meeting was

conducted and public notice of said meeting was given pursuant to and in full compliance

with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976, and that the

minutes of said meeting were kept and will be or have been made available as required by

said Act.

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1471 Session ofthe 91h h - pontiac.mi.us · may retain the cash portion of the demolition bond to...

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