October 28, 2024
City of Dexter City Council
Work Session and Meeting
Monday, October 28, 2024
Work Session (6 p.m.) and Regular Meeting (7 p.m.)
3515 Broad Street, Dexter, MI 48130 and via Zoom
Join Meeting via Zoom (in-person attendance also welcome!)
https://us06web.zoom.us/j/82716938464
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Meeting ID: 827 1693 8464#
Work Session Agenda: https://files.dextermi.gov/City_Council/2024/Agendas/2024-10-28-CC-A-WS.pdf
Work Session Packet: https://files.dextermi.gov/City_Council/2024/Packets/2024-10-28-CC-P-WS.pdf
Meeting Agenda: https://files.dextermi.gov/City_Council/2024/Agendas/2024-10-28-CC-A.pdf
Meeting Packet: https://files.dextermi.gov/City_Council/2024/Packets/2024-10-28-CC-P.pdf
WORK SESSION @ 6 p.m.
The purpose of this work session is to discuss the proposed Sloan-Kingsley development. There is an opportunity for public comment (in-person or virtual) at the beginning and end of the work session.
Earlier in 2024, City Council requested that staff prepare material related to the potential financial implications to the City of the proposed Sloan-Kingsley development. Staff has worked on developing and compiling various sets of data for presentation to City Council.
During City Council’s discussion on the Sloan-Kingsley development in December 2023, several Council Members identified that a key component of the development proposal would be the successful location of a site for a municipal well. Since that time, the developer has been engaged in activities to locate and test for a potential well. Included in the packet is an e-mail update from Dan Whalen with Williams and Works (City’s municipal well consultant) regarding the status of the well search as of October 8, 2024.
Note: The property has not been annexed into the City. No formal site plans have been submitted to the City for formal review by the Planning Commission or City Council.
REGULAR MEETING @ 7 p.m.
PRE-ARRANGED PARTICIPATION
Pre-arranged participation will be limited to those who notify the City office before 5:00 p.m. Monday of the week preceding the meeting, stating name, intent and time requirements. (10-minute limit per participant)
Jennifer Olmstead from Ann Arbor SPARK will address Council.
NON-ARRANGED PARTICIPATION
Non-arranged participation will include those in the audience not listed on the agenda that wish to speak. At the Mayor’s discretion, members of the audience may be called on to speak at any time. Those addressing the Council will state their name, and address. This section is limited to 5-minutes per participant or 10-minutes for group representative.
As always, there are two opportunities for non-arranged public participation: one near the beginning of the meeting and one near the end of the meeting. See the agenda for details. Just state your name and address and then share your thoughts–it’s that easy!
VARIOUS UPDATES
Council will review (1) minutes of its most recent meeting(s) and (2) the upcoming meeting list. We will also hear various updates from staff, including the City Manager and the Mayor (note that corresponding written reports are included in the meeting packet).
Updates that might be of interest:
November 5, 2024 Election. The November General Election will be held on November 5, 2024. To-date, the City has issued 1815 absentee ballots and had 991 returned. Staff will be holding election inspector training sessions later on October 24th and October 25th as we prepare for the General Election. City Hall will also be open for absentee ballots on Saturday, October 2, 2024 from 9am – 5pm for the purposes of issuing absentee ballots.
Public Safety Facilities Updates.
On October 22nd, staff met with Mayor Keough and representatives of the DAFD Board to discuss the draft lease agreement for DAFD’s use of 3515 Broad St. The results of that meeting are presented as part of the October 28, 2024 City Council meeting agenda item.
On October 23rd, staff participated in the punch list walk through of the fire station at 3515 Broad St. There are only a few minor items from Cunningham-Limp’s scope of work remaining to be completed. Two items that were brought-up at the meeting for which staff will be soliciting cost proposals and estimates are adding insulation to the temporary apparatus bay, and adding a staircase to the end of the walkway leading towards the temporary apparatus structure.
On October 17th, staff participated in a pre-demolition meeting with Cunningham- Limp, PIA, OHM, and Blue Star (demolition contractor). The meeting served to introduce staff to the contractor, but a follow-up pre-construction meeting is being scheduled. The electric and gas lines have been disconnected from 8140 Main St. by DTE. Blue Star is scheduling the cutting and capping of the water and sewer lines. Cunningham-Limp will be applying for the final demolition permit through Washtenaw County by the end of the week of October 21st.
Washtenaw County Sheriff’s September Report. Noteworthy events, per the report, include:
On September 3rd Deputies investigated an organized retail fraud in the 7000 block of Dexter-Ann Arbor Road. The victim advised that a cashier was “tricked” into activating $6,500 in gift cards. Deputies obtained surveillance video and were able to identify a possible suspect, however the cashier was unable to identify the suspect in a photographic lineup.
On September 6th Deputies conducted a traffic stop on Dexter Pinckney Road near Westridge Road for excessive speed. When Deputies contacted the driver, they detected the odor of intoxicants. Deputies conducted field sobriety evaluations and determined the driver was intoxicated. A preliminary breath test was administered with results nearly 1.5x the legal limit. The driver was placed under arrest and a blood draw was administered. Lab results are pending with the Michigan State Police Forensic Laboratory.
On September 12th Deputies investigate a single vehicle crash near the intersection of Baker Road & Shield Road. When they contacted the driver, they detected the odor of intoxicants. Deputies conducted field sobriety evaluations and determined the driver was intoxicated. A preliminary breath test was administered with results nearly 3x the legal limit. The driver was placed under arrest and a blood draw was administered. Lab results are pending with the Michigan State Police Forensic Laboratory.
On September 18th Deputies investigated a stolen vehicle complaint in the 7700 block of Second Street. The victim informed Deputies that their orange & black moped had been stolen from in front of the residence. No suspects have been identified and the moped has not been recovered.
On September 22nd Deputies investigate a single vehicle crash near the intersection of Dexter-Ann Arbor Road & Carrington Drive. When they contacted the driver, they detected the odor of intoxicants. Deputies conducted field sobriety evaluations and determined the driver was intoxicated. The driver was placed under arrest and a blood draw was administered. The results of the blood draw showed the driver’s blood alcohol level was over 2.5x the legal limit. Charges are pending with the Prosecutor’s Office.
3045 Broad Street Update. The Trowbridge Companies has submitted a Real Estate Purchase Offer and Sales Agreement to the DDA, for the six parcels that make up the 3045 Broad Street Redevelopment Area. The Offer has been forwarded to the 3045 Broad Street Sub-Committee (Doug Finn, Don Darnell, Mayor Keough, & Mike Penn) for review and discussion. Staff anticipates a meeting will be scheduled between the Sub-Committee and Trowbridge representatives in the coming weeks. Staff also anticipates the Offer will be discussed by the DDA at its November 21st meeting.
City Budget Report for First Quarter of Fiscal Year 2024-2025. See the entire report beginning on page 9 of the packet.
CONSENT AGENDA
Following the presentation and any discussion of these reports, Council will consider (i.e., take formal action on) the following items as part of the Consent Agenda. Unless Council votes to do otherwise, these items are voted on as a single bundle without Council discussion.
Bills & Payroll in the amount of: $274,925.08
Appointment to Arts, Culture, and Heritage Committee
Meredith Giltner
FY 2024-25 Q1 Budget Amendments
Installation of FRP Grating to J.K. of Michigan in an Amount not to Exceed $6,871.69
As part of the Headworks and Tertiary improvement project in 2019, a new wet well was constructed inside the WWTP operations room to replace the old screw pumps. This project included improvements to the tertiary system that helps reduce phosphorus to EGLE approved levels. Following the completion of the project, staff noticed an increase in the atmospheric moisture in the WWTP operations room. After evaluating options, it was found that covering the wet well and flow channels with Fiberglass Reinforced Plastic (FRP) would be a cost-effective option for minimizing moisture in the room. The Utilities Department purchased a FRP cover system from Fibergrate Composite Structures in FY 2023-24. The installation of the FRP grate was included in the FY 2024-25 Sewer Fund budget.
The City solicited proposals from potential contractors for the installation of the FRP that have the ability to install the FRP cover system. The City received the following responses. Of the three potential contractors, the proposal coming from J.K. of Michigan came in as the low bidder at $6,871.69. J.K.’s proposal is included in the packet.
JK of Michigan - $6,871.69
Rail Components, Inc. - $7,100.00
Midwest Power Systems - $26,000
Purchase of Bobcat Skid-Steer Loader and Flail Mower Attachment from Duible Equipment, Inc. for an Amount not to Exceed $75,428.02
This item is for the purchase of a Bobcat Skid-Steer Loader, boom mower attachment, and special applications door kit. This purchase would replace the City’s 2015 Bobcat skid loader. The skid loader is one of the DPW’s most commonly used pieces of equipment as it has a variety of uses, such as in rotary broom snow sweeping downtown; digging; brush hogging; and stump grinding. The new Bobcat will continue to fill its role in various maintenance activities such as in the parks, roads, and heavily during the winter downtown, and on the City’s trails.
This purchase is proposed through Diuble Equipment, Inc. using the MIDeals program. The cost of the machine is $64,565.62. The DPW would also like to acquire a flail mower for use in cutting brush in the City’s alleyways at a cost of $10,862.40 (total of $75,428.02).
The trade-in value of the DPW’s current Bobcat is $24,500, but staff anticipates posting the machine to GovDeals to determine whether a better return can be gained from auction.
Reaffirm Special City Council Meeting Decision to Send Charter Amendment Educational Mailer
City Council unanimously voted to approve the release of an educational mailer regarding the charter amendment proposal at its meeting on September 23, 2024. During that meeting, City Council members requested a variety of changes and additions. Following the meeting, staff attempted to make the requested changes and additions, as well as additional proofreading/grammatical/flow changes.
Due to the scope of the changes, staff wanted to provide City Council with an opportunity to review the final version of the mailer. As a result, Mayor Keough called a special meeting on Friday, September 27th.
Staff posted the agenda at the Council Chamber entrance window, and posted the agenda and packet to the website – all prior to the 18-hour notice requirement per the Open Meetings Act. Staff failed to deliver physical packets per the Special Meetings City Charter requirement. This was City Manager Justin Breyer’s oversight, and he apologizes.
The educational mailer has been printed, mailed, and delivered. It cannot be recalled. However, as recommended by City Attorney Munzel, City Council can reaffirm its decision made at the special meeting on September 27th, should Council desire to do so.
DISCUSSION AND/OR CONSIDERATION ITEMS
In addition to any items described under Consent Agenda (above), Council will consider (i.e., take formal action on; “C”) or discuss (i.e., take no formal action on; “D”) the following business:
Public Safety Facilities Bid Package #2, Change Order #3 Award to Cunningham-Limp for an Amount not to Exceed $6,901,463 (C)
The City’s construction manager, Cunningham-Limp released Bid Package #2 for work associated with construction of the new building at 8140 Main St. on September 9, 2024 with bids due on September 27, 2024. The bid pack included bids for 32 areas of work. At the bid deadline, Cunningham-Limp received approximately 142 bids, which Cunningham-Limp then leveled to verify an apples-to-apples comparison on scopes of work.
City Council is being asked to approve Change Order #3 for the award of Bid Pack #2. The proposed award amount for GMP change order #3 (“Bid Pack #2”) is $6,901,463.
With this portion of the work being bid and costs being shored-up, the total project budget is also becoming more firm. As provided in the attachment, the budget is tracking approximately $1.1M over revenues (including a contribution from the Roads Fund of $510,000 for work in the ROW). However, there are options to deal with the difference. These options include:
$1,475,268.13 – Unrestricted General Fund balance over 15% (assumes as-budgeted revenues and expense.)
Historically, City staff has had a better revenue over expense than budgeted
$2,165,133.13 Unrestricted General Fund Balance in total
$181,178.24 additional budgeted transfer-out to project fund in General Fund.
$250,000 – Anticipated May stabilization payment
$88,700 – Reassign from General Fund OPEB
$175,000 – Reassign from 8050 Main St. restrooms
$500,000 or more - Sale of MAV property. The property was purchased for $544,000. Selling this property would require a vote of the public. Staff does not know what value the City would be able to recoup from a potential sale. This would also place a currently tax-exempt parcel back on the tax rolls.
$212,204.43 – Reassign committed fund balance from sewer
Millage Cap Space – The City has 1.0225 mills remaining in the millage cap space. 1.0225 mills would generate approximately $272,497.
Amendment to Professional Services Agreement with Partners in Architecture for Public Safety Facilities (C)
The contract with Partners in Architecture identifies that as project costs become known, the contract will be updated and a hard number will be applied to the contract for architectural and engineering services. With trade costs becoming known following Cunningham-Limp’s receipt of bids on Bid Package 2, now is an appropriate time to bring the contract with Partners in Architecture up-to-date and finalize costs.
Based on current costs, and the 9% of cost of work architectural fee, an updated contract has been provided by David Gassen with Partners in Architecture to set the fee at $881,350. This fee includes the cost of work for OHM Advisors to-date.
Proposal from OHM Advisors for Final Engineering and Construction Administration for Public Safety Facilities for an Amount not to Exceed $98,200 (C)
On October 23, 2024 (my words: this date is incorrect), City Council approved a contract with Partners in Architecture (PIA) for architectural and engineering services. The City identified OHM Advisors (OHM) as its preferred civil engineer, and OHM was identified as the civil engineer subcontractor in the contract with Partners in Architecture. Following execution of the contract, PIA and OHM struggled to agree to a number based on the complete scope of work that would be required by the City and fitting that scope of work into the 9% A/E fee charged by PIA to the City.
PIA, OHM, and staff have discussed the situation and are proposing that OHM be paid through the approved A/E fee in the PIA contract through final engineering, then OHM would move forward on the project working directly for the City.
OHM has provided a scope of work, picking-up from final engineering and continuing through project completion. This proposal includes on-going participation at project meetings, construction engineering, and continuing to assist in responding to engineering RFIs through project completion.
Lease Agreement with the Dexter Area Fire Department for 3515 Broad St. (C)
During City Council’s October 14, 2024 meeting, City Council held a public hearing regarding an ordinance to lease property at 3515 Broad St. to the Dexter Area Fire Department (DAFD). As a part of that consideration item, staff provided a draft lease agreement alongside the Ordinance. Per the approved Ordinance, City Council also has to approve the lease document.
The draft lease document presented to City Council was shared with the DAFD Board during their October 17th meeting. The DAFD Board did not adopt the document, but instead appointed three of their members (John Scharf, Karen Sikkenga, and Zach Michels) to meet with representatives of the City. A meeting was held on Tuesday, October 22nd to discuss the draft lease agreement, including Doug Armstrong, John Scharf, Karen Sikkenga, Zach Michels, Shawn Keough, and Justin Breyer.
Following the October 22, 2024 meeting, staff worked with City Attorney Munzel to make revisions based on the direction of the discussion. A copy of the updated lease draft is provided as an attachment to this memo. If approved, the lease document will be forwarded to the DAFD Board for consideration at their meeting on November 21st.