«Tax Incentive Review Committee, 5:30 p.m. Admin Conference Room 04 City Council Workshop, 5:30 p.m., Council Conference Room 11 City ...»
AUBURN HILLS MEETING SCHEDULE
Tax Incentive Review Committee, 5:30 p.m. Admin Conference Room
City Council Workshop, 5:30 p.m., Council Conference Room
City Council, 7:00 p.m., Council Chamber
Tax Increment Finance Authority, 4:00 p.m., Council Chamber
12 SPECIAL: Brownfield Redevelopment Authority, 7:00 pm, Public Safety Meeting Room 12 Planning Commission, Public Safety Building CANCELED Pension Board, 3:00 p.m., Admin Conference Room 13 Retiree Health Care, 4:00 p.m., Admin Conference Room 13 Beautification Advisory Commission, 6:00 p.m., Admin Conf Room DATE & LOCATION 13 CHANGE 14 Zoning Board of Appeals, 7:00 p.m., Council Chamber CANCELLED City Council, 7:00 p.m., Council Chamber 18 19 Library Board, 5:45 p.m., Library Conference Room Beautification Advisory Commission, 6:00 p.m., Council Conf Room DATE CHANGE 20 Public Safety Advisory Committee, 6:00 p.m., Public Safety Building 26 City Council Chamber (Conf. Rm.) – 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 - 1984 Taylor Road Library - 3400 Seyburn Drive Downtown City Offices – 3395 Auburn Road, Suite A University Center, 3350 Auburn Road, Main Floor, Classroom AHUC-02 The City of Auburn Hills Regular City Council Meeting Monday, May 11, 2015 ♦ 7:00 p.m.
*Workshop – 5:30 p.m.* Council Chamber 1827 N. Squirrel Road Auburn Hills MI 248-370-9402 www.auburnhills.org *Workshop – Non-Union Benefits Resolution Discussion*
1. MEETING CALLED TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL OF COUNCIL
4. APPROVAL OF MINUTES4a. Regular City Council – April 27, 2015 4b. City Council Workshop – April 27, 2015
5. APPOINTMENTS AND PRESENTATIONS5a. Presentation – Mental Health Awareness Resolution
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. Motion – Approve Bulk Road Salt Purchase for 2015/16 Season
8. OLD BUSINESS 8a. Public Hearing/Motion – Accept an Ordinance to Amend Chapter 46 Offenses and Miscellaneous Provisions of the Auburn Hills City Code to add Sections 46-251 to 46-253 of Article VIII – Offenses Concerning Minors, to prohibit the use, possession or sale of e-cigarettes to minors, Second Reading and Final Adoption on May 11, 2015.
8b. Motion – 2015 Bloomfield Orchards Subdivision, Water Main Replacement Bid Award and Construction Engineering Services.
9. NEW BUSINESS 9a. Motion – Consent to assignment of lease agreement to American Tower Corporation / 3303 Seyburn Drive 9b. Motion - Consent for NOCWA to enter into a contract for Legal Services.
10. COMMENTS AND MOTIONS FROM COUNCIL
11. CITY ATTORNEY’S REPORT
12. CITY MANAGER’S REPORT
CALL TO ORDER: Mayor McDaniel at 7:04 p.m.
LOCATION: City Council Chamber, 1827 N. Squirrel Road, Auburn Hills, MI 48326 Present: Mayor McDaniel, Mayor Pro Tem Kittle, Council Members Burmeister, Hammond, Knight, Mitchell, Verbeke (8:03 p.m.) Absent: None Also Present: City Manager Tanghe, Assistant City Manager Grice, Police Chief Olko, City Clerk Kowal, Finance Director Schulz, Community Development Director Cohen, Senior Director Adcock, City Treasurer Buschmohle, Deputy Treasurer Keiser, Business Development Manager Carroll, City Assessor Lohmeier, Manager of Public Utilities Michling City Attorney Beckerleg, Management Assistant Mariuz, City Engineer Juidici.
4. APPROVAL OF MINUTES 4a. Regular Council Meeting – April 13, 2015 Moved by Mitchell; Seconded by Kittle.
RESOLVED: To approve the April 13, 2015 City Council meeting minutes.
VOTE: Yes: Burmeister, Hammond, Kittle, Knight, McDaniel, Mitchell No: None Motion Carried (6– 0) Resolution No. 15.04.073 4b. Council Workshop – April 13, 2015 Moved by Hammond; Seconded by Kittle.
RESOLVED: To approve the April 13, 2015 Council Workshop meeting minutes.
VOTE: Yes: Burmeister, Hammond, Kittle, Knight, McDaniel, Mitchell No: None Motion Carried (6– 0) Resolution No. 15.04.074
5. APPOINTMENTS AND PRESENTATIONS5a. Motion – Appointment of Cynthia Hutchison to the DDA Board, term to expire October 2018 Cynthia Hutchison introduced herself, noting she is the recently appointed Executive Director of the Auburn Hills Chamber of Commerce. She has held her position for two weeks and is very happy to be part of the community.
Mayor McDaniel congratulated Ms. Hutchison on her Chamber appointment and thanked her for serving on the DDA Board.
Moved by Knight; Seconded by Kittle.
RESOLVED: To confirm the Appointment of Cynthia Hutchison to the Downtown Development Authority for a term ending October 2018.
VOTE: Yes: Burmeister, Hammond, Kittle, Knight, McDaniel, Mitchell No: None Motion Carried (6– 0) Resolution No. 15.04.075 5b. Motion – Presentation on Short Term Investments Ms. Buschmohle explained the Oakland County Treasurer is running late and suggested postponing this item until he arrives.
5c. Motion – Appointment of Dawn Wise to the DDA Board, term to expire October 2018 City Council Minutes –April 27, 2015 Page 2 Dawn Wise introduced herself stating she has been an Auburn Hills resident all her life, and she currently lives in the downtown area.
Mayor McDaniel thanked Ms. Wise for her willingness to serve her community in this capacity.
Ms. Mitchell asked if Ms. Wise is an additional appointee; she believed the Board was already full.
Ms. Carroll explained after reviewing the City’s ordinance for the DDA Board, another member was required.
Moved by Mitchell; Seconded by Burmeister RESOLVED: To confirm the Appointment of Dawn Wise to the Downtown Development Authority for a term ending October 2018.
VOTE: Yes: Burmeister, Hammond, Kittle, Knight, McDaniel, Mitchell No: None Motion Carried (6– 0) Resolution No. 15.04.076 5b. Motion – Presentation on Short Term Investments Ms. Buschmohle explained in October 2014, JP Morgan/Chase closed the Governmental Pooled Accounts, which the City has used for many years for the operating funds to meet expenses during the year. The City needed to locate another source to deposit funds that will also earn incremental interest. The Oakland County Local Governmental Investment Pool (LGIP), is a pooled fund that will meet the needs of the City and earn additional interest. This Pool meets all the requirements of Public Act 20 and the City’s Investment Policy.
Katherine Ghannam, Asset Strategies, explained she, Ms. Buschmohle, County Treasurer Andy Meisner and Natalie Neph from the Investment Unit met earlier this year and reviewed the LGIP.
Andy Meisner, County Treasurer, explained Public Act 20 is the State law that governs investment of public funds. This Pool is a cash management pool which has a simple three-part formula; the first step is safety first, to not lose any money with short term, safe investments in certificates of deposit with a local bank or credit union. The second principle is liquidity, navigating the cash flow, paying the bills. The final principle is return; if money can be made on the money, that is great, but not the priority. The Local Government Investment Pool is permitted under Public Act 20, and allows the County Treasurer to work with cities, villages and townships who are looking to place money in a pool for any number of reasons.
One reason may be because the pool is investing larger sums of money, which may result in better interest rates.
Currently the investment pool is earning 93 basis points, meaning 9/10’s of a percent. There are 35 public entities, cities, villages, townships, authorities and libraries that participate in the LGIP.
Mr. Meisner explained this is a service offered by the County, and is available if the City chooses to participate. Ms. Neph has been working with the County for 23 years. The LGIP process is a very transparent, and due diligence is done when deciding where to place the Pool money, including the yield curve, duration, interest rate, liquidity, yield and other determinations. Public Act 20 requirements are strictly adhered. As of March 31st, the LGIP had $1.13 billion to invest. A monthly statement is available for each entity noting the interest earnings; there is also a 3.7 basis points charge for being part of the LGIP. It is suggested the Pool money be invested minimally for 60 days.
Natalie Neph explained the money is receipted the same day it is received, but one day notice is necessary when money is withdrawn.
Mr. Meisner explained there is very strong fraud prevention and internal controls in place to keep the money safe.
Mr. Knight stated this is a very wise approach for the City, to utilize the County who has done their due diligence. He hopes there are no bank CD’s since they don’t pay anything near what credit unions do. He is in favor of this approach for the City’s money.
Mr. Meisner noted when he became Treasurer, the banks at the time were in precarious situations and that is why they sought federal agency bonds for investments. He also amended the Oakland County Investment Policy to include credit unions. All size deposits are welcomed; it is generally a billion dollar portfolio and in the six years being Treasurer, he hasn’t lost a penny and doesn’t intend to start.
Mr. Kittle noted the rate of return is 93 basis points and the County charges 3.7 basis points.
Mr. Meisner explained the 3.7 basis points is the administrative expenses.
Mr. Kittle asked Ms. Buschmohle about the 18 month CD which results in 1 1/4 % interest.
Ms. Buschmohle explained there isn’t a guarantee of the same return; currently she guesses.95% to 1%.
Mr. Kittle asked what amount is being considered to invest in the LGIP.
Ms. Buschmohle stated she hasn’t yet made that determination. She will meet with the Finance Director, but believes between $5 million and $10 million. This will be the means for the operating funds and we will draw out as necessary. The liquidity is quicker with the Pool; if drawing from a CD before the maturity, interest is lost. There is still approximately $2 million that will remain in CD’s as in the past; this is the money from the JP Morgan/Chase pool that is no longer available.
City Council Minutes –April 27, 2015 Page 3 Mr. Kittle noted by agreeing to this resolution, it allows the City to be part of the Pool, but no exact amount of money will be stipulated at this time.
Ms. Buschmohle confirmed she is seeking Council’s approval to join the LGIP and will the meet with the Finance Director to determine the amount to invest.
Mr. Kittle asked Ms. Ghannam if this is a real advantage for the City.
Ms. Ghannam explained this is where the City can park some short term liquidity, three to six months, receive an adequate return, with a reasonable fee.
Mayor McDaniel asked if before any amount of money gets deposited into the Pool, the proposed amount will require Council’s approval.
Ms. Buschmohle explained that isn’t the case. Council’s approval is to join the LGIP and take the money on hand for the 2014 tax collection, which would have been invested in the JP Morgan/Chase pool, will now be invested in the LGIP. It won’t be the entire amount, some money will remain in the bank to meet operating expenses, payrolls twice a month and keep a cushion. That is what the meeting with the Finance Director will determine.
Mr. Knight stated he will watch the returns from LGIP and the returns from Cutwater and if the returns from Cutwater are not as good, there may be other avenues to pursue with the County.
Ms. Mitchell likes the concept of this pool; however, she is concerned with the amount of money that will be invested. She asked if it was necessary to approve the resolution this evening.
Ms. Buschmohle explained it doesn’t have to be adopted immediately, but the tax collection would have automatically gone into the JP Morgan/Chase pools. Those pools no longer exist and that is the reason for the Oakland County pool. The money is sitting in a checking account, not earning any interest. The tax collection was $17 million, which would have already been deposited in the pools. Of the $17 million, $10 million would be put into the pool and the other $7 million would remain in the checking account, which is currently at $24 million. Next day liquidity will allow the City to draw money from the pool and deposit it into the checking account to meet the City’s obligations.
Ms. Mitchell asked if there was a maximum that can be withdrawn from the pool. Perhaps if the City decides it isn’t what is wanted, can all the funds be withdrawn without penalty.
Mr. Meisner explained this is another tool available to the City and if there is a need for the City to withdraw all the money, then it will be done.
Ms. Buschmohle noted the term for the pool is a two year agreement that automatically renews unless the City prefers to not renew the agreement. There is a 30 day notice to terminate the agreement. She would like to get the money deposited into the pool as soon as possible, since it is not earning any interest in the current checking account.
Mr. Knight noted that according to the chart provided, the pool has $80 million liquidity available at any given time.
Mr. Burmeister asked if Council will be advised of the amount deposited into the pool after the discussion with the Finance Director.
Ms. Buschmohle stated she can advise Council of what was determined.
Mr. Tanghe stated Ms. Buschmohle will report to him and he will forward the information to Council.