Budget Finance of Auditor in the Committee of Wednesday, July 1st.

Happy July 2026 to order.

Will the clerk please call the roll?

Good afternoon.

Councilmember Denzel and Tom McCampbell.

Present.

Councilmember Letitia Johnson.

Present.

Councilmember Mary Waters.

Member Warders has indicated she would be tardy, but we'll be joining us soon.

Okay, the clerk will note.

We have quorum, Mr.

Chair.

Thank you, Madam Clerk.

That'll move us on to the approval of the minutes.

Members of the community should have received the minutes from our June 24th, 2026 meeting.

With that, is there a motion to approve?

Motion.

Move us on to chair remarks.

I would just say, as we are in the midst of a uh extreme heat, please do uh check on your neighbors, especially uh seniors and and vulnerable folks if you're able to.

Um there are cooling centers across the city, um, our recreation centers, the libraries, and also various community organizations.

Um, and we also um for our folks who are experiencing homelessness, there are extra services available as well.

So if folks do need assistance, please feel free to reach out to our office um as well.

And please do stay cool and stay safe.

And with that, we'll move on to public comment.

Um request for public comment will close at 1 15.

Well, please limit your remarks to two minutes.

Uh we'll start with folks in the room and then move to those who are joining us virtually.

If you are joining us via Zoom, please do use the raise hand feature and you will be called in order.

Um seeing no one in person right now, we'll move over to Zoom.

And how many folks do we have currently?

Good afternoon, Mr.

Chair.

Apparently, we have nine hands raised.

All right, we'll start with our first speaker.

Our first speaker is Janante Smith.

Mr.

Smith, good afternoon.

You have two minutes.

Good afternoon.

I like to respond to a couple uh council members earlier, specifically Letitia Johnson, uh Johnson, uh Angela Phil Calloway and uh Renata Miller.

So I do have my receipts from uh you taking direction from me, Councilwoman Callaway.

Uh December 9th, 2025.

I was on in District 4, so happened to be Father's District 3, Down the Street from the Night Precinct, trying to get a house that's owned by the land bank that was burned up to be boarded up and demolished.

And uh Angela Phil Calloway, you asked you told me that you would call a demolition department.

You told me you would call uh BC.

You also reach out to the land bank.

Also, uh to councilwoman Ronaldo Miller.

So when you work and you put in good work, people pay you generally.

Uh so I do work with the Detroit Ham Channel Coalition as a volunteer.

Uh if I was to charge for the amount of work that I put in around the Kronos site itself and also the Maroons all across the city, which has nothing to do with the Detroit Ham Travel Coalition's work around Kronos.

Uh, I'd be in the tens of twenties of thousands of dollars shop, not been paid.

I wish I could make as much money as you do to be able to say that I don't know about uh policy issues that you should have researched long before you became a city council member, long before you ever thought to read or research uh to run to become a city council member because all of this stuff is public information.

And if it is not public information, you have a million dollars worth of staff to be able to research this information.

You should have briefs, you have an LPD, you have a legislative and policy division, which is a team full of lawyers and researchers who can provide you with any information that you need around the city of Detroit.

So when it comes down to leadership, as a leader, you should know what your constituents need and what the city needs because you're a part of the checks and balances of the Detroit City government.

Also, to Angela Phil Callaway, a liar is the worst thing to do.

It's the worst thing to be.

And I called you disingenuous earlier, but now I'm calling you a liar.

Uh, just because I have the facts to prove that you're lying, and it's it's really, really bad to say that.

Also, I went to the Board of Police Commissioners meeting about this work.

I've also talked about the police using their access to bride and round neighborhoods to be able to board up house and things like that.

So when people say things and they don't have proof and they lie, I'm always gonna come on receipts.

I'm always gonna talk about the truth.

Have a nice day.

Thank you.

Next speaker.

Our next speaker is William M.

Davis.

Commissioner Davis, good afternoon.

You have two minutes.

Uh good afternoon.

Can I be her?

Yes, we can.

Okay, I like to start out by letting my um active retirement employee association.

Members know that, you know, in case you did not get the email, we will not be meeting today.

Uh, we normally meet at St.

Matthew, St.

Joseph Episcopal Church at 8850 Woodward on the first Wednesday of every month, but we're not meeting today.

Uh, we uh in mourning because we lost one of our giants in our group.

Uh, in fact, uh, he was at our most recent retiree task force meeting.

Um, Rudy Ram, you know, Rudy Marco.

Um, in fact, he had, you know, I don't know if he was the one, but I know I was telling some people that you know he designed the the shirt and embells that we have for our for that.

In fact, he had, you know, I don't know if he was the one, but I'm always telling some people that you know he designed the shirt and embells that we have for our for that.

He's a very active at the church, very active City Detroit retiree.

I'm very active in this community.

I was in the LaSalle Garden area.

And he was with DOT for years.

So we're in mourning, so we're not meeting today.

His service is factor is gonna be on uh July 11th, uh 2026 at St.

Matthew St.

Joseph Church at 8850 Woodward.

Uh family are starting at 10:30 a.m.

And the funeral service starting, the homegrown service starts at 11 a.m.

So keep him in your prayers.

Uh also, as we talk about this heat emergency that's going on, I know that perhaps y'all may be a little young, but see the Detroit was up on the Justice Department review for the way they treat uh people that was in the detention centers.

That's why they had that today.

It was up under federal review for a while.

Right now, Detroit Detention Center, uh, those buildings are crowded and have no air conditioning.

Most of them do not have air conditioning, you know, so that might be a lawsuit waiting to happen.

So hopefully y'all help take care of the people that have not been convicted of anything.

So y'all have a great day and be safe.

Stay hydrated.

Thank you, Commissioner Davis.

Um, a couple of things.

I believe someone from my office reached out to you for more information on um Mr.

Marco.

Uh so um if you could give us a call back, that would be appreciated.

And uh I know um Board of Police Commissioner Camille mentioned the detention center as well.

Um, I will follow up with her to see um if they are taking further action there.

Thank you.

Next speaker.

Our next speaker is please answer my question.

Good afternoon.

You have two minutes.

I believe that's Miss War, right?

Good afternoon.

Are you there?

Hello?

Yep.

You have two minutes.

Can you hear me?

Yep, we can hear you.

Okay, thank you.

Okay, I signed in as please answer my question.

I also sent, I think every council member an email.

If I miss, please forgive me.

Um, there was no community benefits ordinance process for the solar initiative.

There's no community benefits agreement in these areas.

So why is it that uh some people got housing upgrades, but the rest of us did not?

As I explained in an email, I worked for almost took a job with a guy who sold uh solar panel things with battery installations.

He mostly sold them to Caribbean nations, not because they were worried about global warmings, because they didn't have stable uh power supplies.

He said in this country we could do so much to cur for global warming, curb greenhouse gas emissions if we would weatherize our homes.

And so why my question is again is I've asked multiple times why do the rest of us not get housing upgrades, but the people in the targeted solar areas did when there was no CBO process, there was no community benefits agreement.

And I will give you some of my time, or will somebody answer afterwards?

I you know, member Callaway the other day said that you know people take time out of their day unpaid to come to these meetings, you know, because this is our chance to talk to you because very politely don't get calls back from a lot of people, but at least Denzel in your office people answer the phone and Gabby's too.

And and sometimes member Miller, but I don't always get a response.

So I think the rest of us deserve to know because our money is being spent on this project, but where are the benefits for the rest of us?

Why do some people get housing upgrades and the rest of us don't?

If we really cared about curbing global warming greenhouse gas emissions, we would be trying to get everybody those upgrades, and it would be better for people.

Thank you, Ms.

Ward.

I will um check in on the email and and check with the team on how to get you an answer.

Um, but I would just say overall, we I think we all know that we need to take more action to combat climate change and also ensure that we're building climate resilient infrastructure, including um homes and weatherization.

All right, next speaker.

Our next caller is Betty A.

Varner.

Ms.

Varner, good afternoon.

You have two minutes.

Uh uh good afternoon, uh, council member uh McCampbell and to all within the sound of my voice.

I'm Daddy A.

Brown, the president of the Soda Elf World Black Association.

Uh happy July to everyone.

I'm gonna be talking frequently uh throughout the month about our annual Arise Detroit event that we do.

We've been doing it for the last uh four to five years, and it's uh focused on family.

It's a family fun day.

We're gonna have family games, we're going to have tents up, we're gonna have bouncy house for the uh kids.

We're gonna have food, we're gonna bring resources to the community.

It's gonna be at 6451 Ellsworth, corner of Monica at the Diva Community Park that we have created in our neighborhood.

We have purchased vacant land and created a beautiful park.

And just this year, we uh purchased three additional lots, and we're going to expand our park.

We're in barber and a uh hair braider.

We uh do free haircuts, free hair braiding.

Uh we're looking for uh hygiene products to give away to the children.

We uh for school, we're gonna be giving away school supplies.

Everything that we do, we give away.

We're bringing resources.

We hope to have DMC there.

That's gonna be the treasurer, uh mobile unit available, and we try to make it convenient.

It is a uh Metro Detroit event.

All is welcome.

Uh we are asking uh for volunteers, people to help us set up and break down our tents, and we need um help to make this be a success.

So please, please help us.

Thank you, Miss Varner.

Actually, if you could um give my call and off it, uh my office a call.

Um, I might I may have a resource for um the hair care and barber.

So uh my office number is 313-224-2151.

Let's see if we can help you out there.

All right, next speaker.

Our next speaker is Legendary Detroiter.

Mr.

Crawley, good afternoon.

You have two minutes.

Okay.

Okay.

Listen up.

Um Denzel McCampbell.

You came into office.

You sitting here with all these cheated in public officials.

Dennis Winfrey been cheating in Detroit elections.

I believe for 15 years, but I can only prove since 2020.

And I'm the one that got the information to Donald Trump directly to him.

Now, it was James Tate who was supposed to get dealt with first.

District one representative, president of the Detroit City Council, cheated in more than anybody else on the Detroit City Council, the 2026 Detroit City Council.

Ain't nobody been cheating in more than James E.

Tate Jr.

But what Angela Callaway did this morning is changed my whole program.

She did not call on me for public comment.

She's a scoundrel.

So she gets first.

Even though I'm over in District Three Scott Business District.

See, I just got a ticket from code enforcement for a truck being parked in the driveway.

But Angela Callaway did not allow me to make public comment.

She said that smart slick stuff this morning.

Now I'm getting ready to turn up on all y'all.

Oh, y'all gotta go.

Y'all gotta get the F out of Nene's way.

I'm not playing with nobody no more.

And I am one of the coldies in Detroit over the last 46 years.

I had a birthday yesterday.

I'm 59.

Now it's turn-up time.

For real, for real.

Well, happy belated birthday to you, sir.

Um, next speaker.

I believe this was the previous caller, but just in case uh Rubensky.

That may be missed, but let's double check.

So make sure.

Um speaker, next speaker, you have two minutes.

And before we go to that, madam Kirk, if you would please note that member waters have joined us.

Circle now.

Thank you.

All right, next speaker.

If you are there, you can come off mute.

You have two minutes.

Rubinski.

If you are there, you have two minutes.

Going once, going twice.

All right, we'll put them in the queue and try to come back at the end, but we'll go to the next speaker.

Our next speaker is Owner Papa.

Ms.

Hughes, good afternoon.

You have two minutes.

Are you there?

Miss Hughes, one more time.

Are you there?

Uh yes.

Good afternoon, may I be heard?

Good afternoon.

Yes, you may.

Um, yes.

Today, uh, in the last meeting, a lot of things went on.

One of them that went on was an investigation into how all of these people got all of these houses.

Isn't that a mysterious thing?

But nobody mentioned the land blank.

Nobody mentioned the land bank.

We have one person with 2,000 houses, a guy who has two 300 houses almost that need to be uh maybe condemned.

I don't know, but I don't know what our law department is doing.

Um they're giving all of the landlords a break.

Um, I see some of the buildings that we're tearing down uh belong to people.

We are using bond money to tear down commercial buildings, which is a no-no.

Uh we're we're doing all sorts of things that are illegal, and this is under under you.

Uh this is your budget.

You're you're part of the budget.

And then we have a question about the NEZs.

We're going back to 1992 pulling up NEZs or areas for NDCs.

Well, they that needs to be rethought.

These areas do not deserve any more NEZ money, nor did they deserve any more any NEZ funding.

Uh 5.8.

We you don't need to find out anything about tax revenue for uh data centers.

What you need to do is find out where all of our money is going, and I know we need an investigation of the audit department audit uh they need to audit the grant department.

Um, this whole thing about this H O P W A housing for people with AIDS.

First of all, we were having money for AIDS and we were supplying the entire county uh uh and surrounding.

Now we got uh $13 million for houses for people with AIDS, so you have to go get AIDS in order to get help.

I'm not sure how all of this dividing people out and what you guys are doing is wrong.

You have CDBG money that was supposed to go to the neighborhoods.

You need to do your due diligence on all of these things, especially the solar project, because something is arrived there.

I found houses that we paid millions of dollars for that we have on the agenda coming up for 180 minutes.

Thank you, Miss Hughes.

Next speaker.

Um, our last speaker before we go to the queue is Cunningham.

Brother Cunningham, good afternoon.

You have two minutes, brother Cunningham.

Are you there?

Brother 313, 444, 9114.

313, 444, 9114.

313, 44, 911 4.

That never was made so you can remember it.

I'm speaking to each council person that is in the room, everybody that's uh at home.

If you would like um a non-biased uh kicker card or other information that about send me a text, and I will deliver them to you.

Honorable council persons.

If you like a hundred, a thousand, whatever amount you would like.

Honorable councilman McCampbell, and I can deliver that to you.

Same thing for the other councilpersons under the sound of my voice, and all those at home.

Um, we will deliver those to you.

I thank God for those who have donated a gas card or two to help me get around and pass out flyers and things of that nature.

I appreciate that.

And I would like to give my apologies to councilwoman Mary Waters.

Um, I've never disliked you in any way.

I was leaving the nightly meeting and I turned on my bootle horn, which I always do, and I did not see her giving an interview.

And Mr.

Riddle uh gave me the meanest eyeball that I've ever seen in my life.

I said, Mr.

And I turned it back off, and then when I left the parking lot, I turned it back on.

Um what my um uh bullhorn says is don't forget to pray, there's a lot going on.

We have low-income housing lists, we have bus tickets, we have peer transit applications, and it goes on reverb reverb.

So I don't have to waste my voice or hurt my throat or vocal courts.

It repeats itself.

Uh it starts off by saying what of those is great.

But please accept my apologies.

Thank you, Brother Cunningham.

All right, let's go back to the queue.

Uh our last caller is Rubinsky.

Rubinski, if you are there, you have two minutes.

If this is Mr.

Crawley, we cannot allow you to speak for a second time, but um you have two minutes.

All right.

Well, if you we have to move on with the meeting.

Um, if you want to submit your comment to the clerk for public comment for public record, please do so.

That would bring us to the end of public comment.

Um, anything for my colleagues before we move forward?

Yeah.

Member Waters.

Thank you.

I I just want to say to Mr.

Cunningham, play your bull horn anytime, any way that you choose to play it.

And um certainly I never would have asked you to turn your bullhorn off.

So um I'll have an excuse for anybody else.

But just know where I am always.

Thank you.

Thank you, Mr.

Chairman.

Thank you, Member Waters.

Uh, Vice Chair Johnson.

Thank you, Mr.

Chair.

Um, to William Davis, um, thank you for sharing the information for Rudy Marco.

Um, I will be sure to have some presence at his um service.

I did meet him years ago when I was an AmeriCorps member.

Um, and I was helping and working in LaSalle Gardens.

Um, had the pleasure of meeting his beautiful bride as well.

And so just want to give my condolences to him and his family.

Um, he did such a phenomenal job, not only with his house, but with helping to maintain uh the community and making sure that LaSale Gardens um was at the forefront of everyone's mind, uh, specifically in City Hall, and certainly do appreciate his service for the city of Detroit as um Mr.

Davis indicated.

Uh, he retired from DDAT after serving uh a number of years.

I'm not even sure how many, but um, I do know that he served a number of years with Dat, and he also has family in District 4.

And so uh certainly look forward to celebrating his life and his service, his commitment to this city.

So thank you for sharing.

Thank you, Mr.

Chair.

Thank you, Vice Chair Johnson, and thank you for sharing her memory as well.

All right, that'll move us on long an agenda to unfinished business.

5.1 is a memo relative uh to the mayor's office budget.

This is from my office.

We've been asked to bring this back in one week.

Is there a motion?

Motion motion to bring back 5.1 in one week, seeing no objections, the action shall be taken.

Um we go to 5.2 ammo also for my office related to closing the gap of the pay of Detroiters and um for residents to earn what Detroit pays.

We have received this.

Is there a motion to receive and file motion?

It's been a motion to receive and file 5.2.

Seeing no objections, the actions will be taken.

Um 5.3 is um uh relative to uh claims against the city um and other general awards for claims.

Uh we've been asked to bring back 5.3 in two weeks.

Motion.

It's been a motion to bring back 5.3 in two weeks.

See no objections, the action shall be taken.

Going to 5.4.

Um, this actually is um the amended language is under new business.

So is there a motion to remove 5.4?

Motion it's been a motion to remove 5.4.

See no objections that action shall be taken.

Um for 5.6 and actually 5.5 and 5.6.

These are um memos from my office relative to the NEZ and also role funding.

We've been asked to bring back both items in two weeks.

It's been a motion to bring back 5.5 and 5.6 in two weeks, seeing no objections that action shall be taken.

And then 5.7 relative to the Detroit Health Department budget here and follow up.

We've been asked to bring back 5.7 in one week.

Seeing no objections that action shall be taken.

And for 5.8 from Member Benson's office relative to data center tax revenue impact analysis.

Is there a motion to discuss?

Motion.

Motion to discuss 5.8.

I would defer to LPD, Mr.

Carlton.

Uh Gavin City Council.

Please bring this back in two weeks.

We got some additional information we want to review.

So two weeks.

Thank you.

Motion to bring back 5.8 in two weeks.

Seeing no objections, that action shall be taken.

Folks should have, I'll just note for 6.1.

There is a corrected contract number.

Folks should have that in front of them, but I will read off for the record.

This is from the Office of Contractor and Procurement.

A resolution authorized a 100%.

This is contract number 600 5561 A1.

100% city funding to provide the extension of time and the increase of funds for online IVR and kiosk bill payment system.

The contract is diversified data processing and consultant located in Detroit.

It was from the July 25, 2023 to July 31st, 2026.

Amended contract will take that through July 30 2028.

Contract increase amount is 3,307,500 or 450 dollars, bringing the total contract amount to $8,132,271.42 cents.

Motion to approve.

Yes, yes, sorry.

Uh discussion.

Thank you, Member Wardis.

I believe we have uh Treasurer Golee and Miss Watkins on afternoon.

Good afternoon.

If you both could just state your name for the record.

Valerie Agoalie, Deputy CFO and Treasurer with the City of Detroit.

Thank you.

Thank you both.

Um if you I just wanted to make sure, because I know this is a large amount and folks may have questions in public.

Um if you can just go through this contract and the systems and what this contract is for.

Sure.

Um this contract is um it stems from uh request for proposals that was done in the spring of 2023 when we were seeking to find a vendor that would provide kiosk services for payments as well as online IVR and mobile apps.

This um is one of the vendors that we use for um when constituents or taxpayers need to pay the city of Detroit.

Um at the time that we negotiated the contract in 2023, um, we took it to city council.

It was a three-year contract with an option to renew for one year um for a total of two years.

When it came time to come to City Council with the proposal to renew, we met with Divdat, the vendor, and we negotiated um uh renewal of two years, and in return, the original contract contemplated two and a half percent increases in cost in year four, and then another two and a half percent in year five.

What we negotiated was to remain at the um years one through three cost.

Um there are a few things that we contemplate uh changing, and and that's included in the contract.

Um, one is we are changing all of the kiosks that are in our call center payment office on the first floor of KMAC to recyclers, which will allow um uh change um uh in paper currency.

Not all of them do that, and and we find that that's something that's important.

So that is one change we're going to make.

Thank you.

Anything further?

Right.

Well, I would just say um actually um you answered my first question with the last point uh around the change because you are right.

Um the ability to not receive change has been uh uh obstacle.

Um so glad to hear that happening.

Would will it just be the ones here at uh here at the Common A Young Municipal Center, or will are we changing our multiple to allow change?

Um currently the budget is just for the ones in the Coleman A Young Municipal Center.

If and with that, um do you all plan to start to advertise that for folks to know that they can receive change change here?

Yeah, um we did just uh we we were also doing that, and I could send you pictures, but we did just change the stickers and the notifications on the kiosks to also make that clear with pictures, um, no coins, and that you can get paper currency, but I can send you what that looks like.

Um I I unless somebody from the team has that to send me now to share, but I don't have it pulled up.

If you can just share that uh with us, it doesn't have to be right now, but I think we can just make sure to get the word out for folks as well.

Um that would be useful.

Thank you.

And also um on the I do have to ask about data security.

Um has there been any auditing done on these systems just to make sure that Detroit's personal and financial information is safe.

Yes, um, I'm trying to remember what the acronym is, but the contract does require um the there are two audits, one having to do with data and one having to do with finances.

And um the acronym is I think it's SOP.

Um, but we also have uh recently hired uh PCI compliance, um, which is payment card industry compliance consultant to also make sure that we are reviewing each of our payment channels to make sure that um we are in compliance with those requirements on keeping that data secure as well.

Oh, great, okay.

And how often will they look over those channels?

Um we're starting it right now.

It's a requirement of the uh credit card partners.

And I need to check to confirm, but I believe it's an annual requirement.

Got it.

Okay.

And my last question, uh, and thank you so much.

Um the 18 there's a 18% allow allowance for change in transaction volume and miscellaneous programming rate.

Um if you could you just go into the definition of those and the oversight that um exists to ensure that those aren't inflating the cost here.

Um yes.

So uh that is an allowance.

What we do for the contract is um we estimate how many transactions we expect to occur, and then divdat reports the actual number of transactions.

Um Treasury's deputy treasurer of operations, Nur Bar, uh, is the person who manages the contract, and each month when he receives an invoice, he reviews it for accuracy.

Okay.

Thank you.

Um I just I actually do have one final question.

My apologies on the language uh access for the div that um I know it has that consumers may pay in English, Spanish, and Arabic with more language added as necessary.

Um could you go into what's the process of adding a language and who decides that um I know that uh I don't have the right people on the call right now.

I know that we do have uh language access policy, but I do need to um get back to you on the details on um adding new languages, but that would be something that divdat would be able to provide.

Okay.

Yeah, I'm happy to follow up on that.

And um a sub-question to that for ASL and um accessibility for users who may be um blind or deaf.

Do these uh kiosks have that capability?

And I'm sorry, I don't have that answer right now.

Um I a div dad is on the call, uh, or if if Megan McGrath could be promoted, I think she might have that answer for us.

Okay.

Um Megan McGrath, if you can just use the raise hand feature, we'll promote you.

Member Waters.

Thank you.

I just wanted to ask her about kiosk, say at the Northwest Activity Center.

Okay.

Good afternoon.

Yeah, yeah, why not?

I understand when they were I understand when they were there before.

Um that was heavy usage.

People really like having kiosk there.

So why not again?

And just for um, thank you, Member Waters.

Uh, Ms.

McGrath, uh, if you can just state your name for the record, and then we'll go to your question, Member Waters.

Thank you.

Yes, absolutely.

This is uh Megan Walter, Client Relationship Manager at Divdat.

Formally last name McGrath.

So sorry for the confusion.

Oh, no problem.

Sorry about that.

Um, so two questions on the floor.

Uh one for the kiosk locations at the Northwest Activity Center.

Um, do we plan to um put kiosk back there?

And then also the ability to add languages and also accessibility for ASL and um and folks who may be um deaf and blind.

Wonderful.

Thank you for those questions and and um through the chair to address uh member waters' question regarding Northwest Activity Center.

We do currently have two bill payment kiosks at Northwest Activity Center.

We see quite a lot of volume at those kiosks, um, especially during the tax season, which kicked off today as well.

Um regarding additional languages on the kiosks.

Currently, the kiosks in the Metro Detroit area support languages of English, Spanish, Arabic, and Bangala on this kiosk, adding additional languages is something that we're absolutely capable of doing.

Um and that request can be funneled through us to include those um as additional options for residents using the kiosks.

Regarding the question for accessibility, um, we do have some accessibility features on the kiosk, including you know, high contracts um text to help those who are visually impaired.

Additionally, we deploy kiosk ambassadors out into the community um to support taxpayers or residents using the kiosk, not just for tax payments, but for all payments to assist them through that that kiosk workflow.

So that's um a human representative who works for DivDAT and is very familiar with the kiosk workflow to help guide those end users who need a little bit more assistance uh making a payment on the kiosk.

Okay, thank you.

Um thank you for that.

On the accessibility side, is there an ability on the kiosk to um you know plug your handphones and do a screen reading or uh anything like that?

At this time there's not uh an ability to have um the audio um recognition of the kiosk.

Um, I do know that's on our product roadmap as well, so I can get more details around that for you all if requested.

Okay, that would be great.

We can definitely follow up on that.

And I would just uh say for the process of adding language, um lifting up um French French as a language that uh quite a few of our residents speakers will.

Absolutely, we can certainly accommodate that.

Thank you.

I know I've monopolized a lot of time, uh Vice Chair Johnson.

Thank you, Mr.

Chair.

Um good afternoon, everyone.

First, I'd like to understand the contract amount.

Um, so can you break down the cost in the contract if it is specifically for additional kiosks, if there are fees that the city pays for on a projected per transaction basis.

Sure.

Um, and I what I'm gonna do is refer to the um fee schedule that should be attached to the documentation.

Um Jamila, I I'm I think that city council has the fee schedule that is it is attached to the amendment.

Um so what that gives is it gives uh the infrastructure and data security maintenance costs, which is uh monthly rate, and then we have various departments that are served by, and this is for kiosk, web payments, mobile app, and IVR.

Um, depending on the department, uh the uh opportunities may vary.

So those are monthly fees.

Um, for example, we have uh Department of Appeals and Hearings uses Divdat.

Uh the for the property tax savings program, we use Divdat, Solid Waste we use Divdat, etc.

Um, and then there are our monthly fees for indoor kiosks.

And that's stated in the detail in exhibit B.

We also pay an additional monthly fee for our outdoor kiosk.

It's a little higher.

It's the one located right outside of KMAC.

We have bus pass dispensers for which we are charged monthly fees that are located at the bus terminals.

And then we have per transaction fees that are per transaction for there's a transaction cost to use the kiosk to use the mobile app to make a payment on the web to make uh an I'm sorry, an online payment, an IVR payment, and so those are all specified.

And uh sorry, then we do have the allowance because our uh costs per transaction are estimates, so it may be more or it may be less.

Um then what we do is uh Divdat includes a number of free programming hours.

Um Megan can correct me, but I believe we have 200 hours that we get for free.

So if we ask them to make programming changes, etc., those are all included.

If it gets to a point where it's beyond 200 hours for the uh year, then then we do pay uh additional amount.

And so the the total amount um for uh what we call years four and years five, because this was you know, it is an amendment to the existing contract is 1.654 million approximately.

Thank you.

Um is there a fee to the individual that's actually using the system?

I know there are credit card processing fees that we might incur, but would the individual incur any fees by divd?

Megan, uh I know you're one of our two payment channels, and I'm I'm quite certain you don't charge any fees.

No, that's correct.

Uh for cash and check payments, um, the end user is not assessed any fees to make those payments.

Uh we also recently reduced our credit card service fee that we're passing on to the end user um to um make that process a little more affordable for them as well.

And can you share what that is, the new fee?

Yep, that is three percent.

Thank you.

Um and Miss Ogoli, I'm not sure if you indicated how many um kiosks will be in the building in KMAC that will disperse um any change that someone like if you submit if your bill is 65 or 63 dollars and you submit 65, it'll give you two dollars back.

You indicate it it will not dispense change coins.

Um the the regular indoor kiosks do not.

Um what we do plan, we put in the proposed contract.

Um the ones that we're gonna replace it with are called recyclers.

And I believe currently of the five in our payment center, two are recyclers.

We're already working on replacing those.

Um, I'm sorry, there are four.

Megan, are there four in the payment center?

There's a total of six, I believe, two of which are currently recyclers.

Um we also installed uh the recycler kiosk at the Butzel Family Center recently.

Right.

And so in far as far as what's in um KMAC, we've got the two that we're gonna replace in that um payment center that's on the first floor.

Then we're also going to replace a recycler.

There's the one that's in the hallway in the in the middle stairs area, and then there is a kiosk um on the fourth floor that BC uses primarily.

You can make other payments as well, but we're going to replace that with a recycler as well.

So that will be all of the um kiosks that are in KMAC.

And um, we also uh if we need to come back, where we also just try to look at usage um there are uh to to make those determinations periodically.

So is there a reason that we wouldn't put recyclers in the community?

Because I I feel as though a person would have to come downtown just for that to be able to get their change and essentially likely have to pay to park to come downtown in order for them to do that.

We look at the usage, and you know, it it would just increase.

We're trying to stay within budget of what we anticipated originally.

And so it would cost more money if we were to do that.

Well, we'll go ahead, Megan.

I apologize.

I just wanted to add on to that too.

Um we have a number of kiosks.

Uh we have about 70 kiosks in the Metro Detroit area, many of which are in retail environments, and we do see that end users are able to get change at those locations by using you know a cashier in the in those situations to get the exact change to make their payments as well.

Okay, wonderful.

Um but could we not, since we already have recyclers in the building, could we not put recyclers elsewhere?

Um it would cost more money.

Uh right now, what we put in the contract amendment that's before you, um, because we try to be as specific as we can in that fee schedule.

Uh we can do up to four additional recyclers, and we believe that that could be done within budget.

So we can um look at usage and uh consider what kiosks are being used the most and um look at whether we uh it's within budget to replace those with recyclers um because they are a higher monthly cost um as well.

So that's the kind of thing, uh, cost benefit analysis that we want to do.

We want to, you know, obviously we want to make it as easy for everybody, but at the same time we want to keep costs down.

So that I'm clear, you're not indicating that the recycler unit is more expensive because of the location.

You're just saying that the unit is more expensive than a non-recycler.

Yes.

Okay, and so what I'm asking is for the recycless that you have within this contract that you want to put in the Komenay Young Municipal Center.

Could we identify other locations outside of the building in the community where they are used more to put them there because they are already recycl in the building?

I understand.

Yes, we will look at that.

Okay, all right, thank you.

And if someone um presumably Megan, if you can provide to us a list of where the divdat kiosks are, that would be very helpful.

Um, and then to Miss Agoli, I press I presume.

Can you identify the other ways that people can well let me just ask you this question directly?

Because there was a time when you could go to certain banks and um pay your property tax bill.

Um, does that no longer exist?

Are there certain banks that you can go to to pay property tax bills or any other bill to the city?

That no longer exists.

Banks don't offer that um to people anymore.

Okay, so it was it's the banks, it's not the city's um decision.

That's right.

That's my understanding, and that has not been an option to pay utility bills there either for quite some time.

Okay.

All right, thank you.

Thank you, Mr.

Chair.

Thank you.

Uh member Waters.

Oh, okay, thank you, Mr.

Umber Um Johnson actually asked my question regarding change, but I just want to ask in addition to that, are you able to reprogram the sheet machine so that people can receive their change back without having to drive somewhere to get it?

So Megan can talk about um they are physically different machines, and I think the cost for maintaining the um recycler that can give change is different, but but Megan, uh you can speak to that if I missed anything.

Thank you.

Thank you, Treasurer.

Yes, um, yes, the issue is with the hardware, um, more so than the programming of the machine.

Um, so yes, uh, we could um to change a machine to a recycler would require uh new hardware and actually physically changing um the the machine itself, uh not just programming the user interface.

Okay, so meanwhile, is there something posted that this um machine does not disperse change so that people will know in advance?

Yeah, there is something post.

I'm sorry, through the chair, I should be saying that.

I apologize.

Um, but there has been something posted.

We've uh recently enhanced that to try to make it more visible to people.

And um that's what I will send you a photo of um unless I'm able to find it before the end of this meeting.

But there are signs um that we recently tried to enhance just for that purpose so that it it's more right in front of your face and more noticeable before you make your payment.

Okay.

Well, I'm happy to know that because I'm um if if if a senior citizen goes there, uh for example, if they have to take the bus home, they put their money in there to take care of something, expecting to receive that change back so they can make it back home.

I mean they may not get it.

I you know, I mean, just I understand that's a very simple example.

And um, I understand it.

Megan, was it just about two or three weeks ago that we put the new stickers to try to make it more obvious?

Um that you don't get uh which machines you don't get paper currency change back from yes, that's correct.

We've added the the decal stickers uh alerting users of which kiosks provide change versus those that don't.

Um additionally throughout the kiosk workflow when the kiosk and the uh user is interacting with the kiosk, um they are alerted a few times through the workflow that kiosk um kiosk to notify change if that's the case.

All right then.

Thank you.

Thank you, Mr.

Chairman.

Thank you, Member Wardison.

Thank you all.

And yeah, I would just echo if there is um a way that we could disperse some of those uh recyclers, at least for it to be a uh east side, a west side a location so folks it can be closer to folks.

Um I I don't have any additional question.

I think one thing I'm gonna reach out to you, Miss Agoli, just for the breakdown of the uh users and and such there, but um I will reach out uh afterwards and writing on that.

Uh any further questions.

Is there a motion on 6.1?

Discussion very briefly, Mr.

Chair.

Um, I just want to share with you all that I used to use a div dag kiosk and I stopped because it didn't give me my change.

Um, but so I I do think it's important to have them throughout the community um and not have all of them here in KMEC.

Uh with that, Mr.

Chair, motion to approve line item 6.1.

The motion to approve line item 6.1.

Any objections?

Seeing none.

That I shall be taken.

Thank you all so much.

All right, that'll move us along in the agenda to 6.2 from the Office of Chief Financial Officer and the Office of Development of Grants.

Uh this 6.2 is a resolution authorized in fiscal year 2026-2027 budget amendments to the C D B G NOF, ESG, uh H O M E and H B O WA.

Um I'm just gonna read the acronyms because I know we talk in acronyms here.

Um the community development block grant neighborhood opportunity fund, um, the emergency solutions grant, the home investment partnerships and housing opportunities for persons with age.

Umends for budgets to reflect the actual allocations received from the US Department of Housing and Urban Development.

Is there a motion to discuss motion?

It's been a motion to discuss.

Um we have, I believe we have um Mr.

Daniels and Warren Duncan.

Good afternoon, Mr.

Chair and Council members.

Terry Daniels, Director, Office of Development and Grants.

Good afternoon.

And we also have Warren Duncan.

I'm sorry.

Um to Chair Warren Duncan, grants manager, office of development and grants.

And we also have Ms.

LeBor.

Tamara Hardy, um HHFS, Director of Navy Services and Economic Development Division.

Good afternoon.

I also see Miss Lebove on the screen.

Rebecca Labove, housing and revitalization.

Thank you.

Good afternoon to everyone.

I just want if folks can just start with an overview of this resolution and the changes.

We have one more staff member to promote.

Can we promote Nicole Wise of Office of Development and Grants?

Yes, we will get um up there.

Good afternoon.

Through the chair.

Uh on my screen, but I am with the Office of Development and Grants.

No problem.

Good afternoon.

And whoever wants to kick us off.

Um, sure.

So I uh can get us kicked off and then uh Mr.

Duncan uh feel free to uh step in if I missed anything.

But what we have before you today is um the amended budget for our HUD entitlement funds.

Um we typically do not receive our allocations, uh our formal allocation from HUD during our budgeting process, and so every year um HRD uh and now our partners at HHFS and ODG uh come to council to adjust the uh budget that was approved by council to reflect the actual allocations from HUD.

And so that's what we have before you today.

Thank you.

Anyone else?

All right.

Okay.

Uh any questions for quick one?

Okay.

I would go member waters then vice chair Johnson.

Um thank you, Mr.

Chairman.

You know, one of the things that that I did request during budget season was a list of all the various grants that our community organizations could apply for and what those deadlines are.

Um I never received it.

Uh in fact, the uh director and um the OCFO's office, uh Mr.

Johnson has said he would provide one.

Um oftentimes community organizations and so forth don't know uh what we have here available, what type of grants that that they can apply for, and I just want to be able to arm them with it in a less complicated manner.

I mean, maybe you say they can go on the website and get it, but sometimes that's not always so easy uh for them.

But if we had a list as council members that we can send out and say, you know, this is when this is the type of grant to you apply for um when is the expiration date and so forth.

I I think that we need to be just a little bit more helpful uh for people so that they can apply because every year we have the same people apply, so there's something missing here.

Anyway, uh yes, through th through the chair, um I will follow up on uh member waters' requests uh to director Johnson and uh we will uh make sure that we uh provide that information to you and your team.

So do you and and to the chair through uh through the chair to council member waters?

Um we will take recommendations of how we can improve our outreach to potential applicants.

Yeah, because I I just want to see more people participate.

Uh we have some really fantastic uh community organizations out there who absolutely they don't know anything about about this process uh when the deadlines are the opportunities that are available, and I just think that that we need to do a better job of getting the word out, and I believe that council members can certainly assist with that.

I know that you have the your thing that you do, but we also want to be a part of that.

So Mr.

Chairman, should I make a motion because before when I when I requested, I still don't have it.

Yeah, um member wise, if you want to make a motion and follow up in writing, I think that'll be um good.

Okay.

All right, so so motion um what which department would would provide that?

Is it is it is it the OCFO's office?

Uh through the chair to council member waters, it would now be the Office of Development and Grants.

Office of Development Grants and the and the OCFO's office.

Okay, both of you are all right.

So Mr.

Chairman, I make a motion uh that the Office of Development and Grants and the OCFO's office um provide council members with the list of all grant opportunities, including expiration dates, so that we can be able to um distribute them to our community organizations.

Thank you, Member Waters.

There's a motion on the floor um for the OCFO and Office of Grants and Development to provide information on available grant opportunities for community organizations.

Uh are there any objections?

All right, the action shall be taken.

Thank you.

Any further questions, Member Waters?

No, not at this time.

Thank you.

No problem.

Vice Chair Johnson.

Thank you, Mr.

Chair.

So to Member Waters' point, um there I know that HRD in the past would host meetings to review how to go through the process in applying.

Um, does that still happen?

Uh through the chair to councilwoman Johnson, yes, those meetings still happen, and we do have our director of the neighborhood opportunity fund and economic uh services on, and she can give more details about the upcoming NOF application process.

So uh Ms.

Tamar Hardy.

All right, good afternoon, everyone.

Through the chair, yes, we continue to hold information sessions related to the NOF um public services CDBG program.

Uh just last week I had the opportunity to meet with council member Miller and held a session in her district alone.

And so we are at the at this time we are beginning to promote the next round of the NOF applications.

We will have our best practices forum on August 4th.

The forthcoming dates for the application will also be promoted when those dates are finalized, and we will be hosting uh the best practices forum on August 4th.

Of course, after that, we'll have three information sessions uh related to the application and a uh question and answer session.

I am available as every year, and so as my team, Kayla Perrin, we will, if you are interested in one of us coming to one of your district meetings, or if you're willing to set up a session just in your district of those nonprofits that you would like to invite to submit an application, please reach out to me.

We're more than happy, as we've done over the last 10-15 years, to meet with you and to be with those nonprofits in your community to host information sessions on the application.

So, yes, we are continuing to do that as we have been doing and will continue to do.

Thank you.

Thank you.

And I know we have um hosted you at a virtual session in the past just to make sure that district for nonprofit organizations were um able to ask questions directly about the application process.

Um, so our team will be reaching out to schedule something.

Um, but if within member waters memo, if you can identify um or share the August 4th best practices uh information, I'm assuming it's going to be virtual, and if you can also provide the information regarding the three info sessions, uh that would be great as well.

So we can get that shared with um nonprofit organizations.

I will certainly do it through the chair.

I'll certainly do that.

We don't have those states solidified.

Um I did not hear when council member waters wanted that information submitted to her.

Uh so you may not get the exact dates, but we are planning them um with the release of the application sometime in early October.

We're waiting on the Office of Contracts and Procurement to help us as we take the application.

As you will remember, um, one of council's recommendations that they asked is if we would take the application that was a paper application application and fully embedded as an electronic application through bonfire.

So we're working with the um Office of Contracts and Procurement to do that, and we don't want to put out a date yet until we solidify and complete that process.

So we're working on that right now, which is something that council asked for, something that we've been wanting to do.

So we're working with the Office of Contracts and Procurement to make that happen.

Okay, thank you.

Um you are welcome.

So once the dates are solidified, if you can just make sure we all receive those uh so we can share within the community, that would be appreciated.

Yes, and I I will also say that I am working with Council, I believe Malik, and we will be coming back to council in the next couple of weeks or maybe a month to give an update on NOF.

Uh so hopefully we'll be able to share that information with you at that time as well.

Thank you.

You are welcome.

And then I do have a question about um the amendments.

Um there was a 2.3 million dollar reduction in the homeless public services.

If someone can just help me to understand that, I presume I won't even tell you what I presume, but uh I did see appropriation 3000 volume to your chair to member Johnson.

Um the 2.3 million deduction in homeless public service, it was put in as a uh bucket when they start the budget process.

Um, and then because homeless public service NOF groups haven't gotten their um RFP done in time for the budget, and so they just usually put the allowed with money uh uh as a bucket, and then we take it out as you can see.

We took it out and and uh ordered the uh briefs 12 groups in there okay.

So it's just showing that it's going to the specific uh programs.

Okay, thank you.

Thank you, Mr.

Chair.

Thank you.

Um Vice Chair Johnson.

Uh I have a um that question on the homeless public services.

Um what process uh determines the grantees and the amounts through the chair to member or to the chair.

Um I believe the uh homeless public service has a RFP process.

I believe what they did last year, they did a two-year RP process and they awarded their groups and similar to the process with the uh public regular public service NOF.

Okay, thank you.

And an additional question for Cash Community Social Service, I see that they're funded across four separate categories totaling roughly 838,000.

Um could you go into the rationale, the level of that concentration or uh were the other providers consider for the warmest and our street outreach lines?

Yeah, future chair.

Um unfortunately I don't work with the homeless public service.

I actually don't work with the RP process.

Uh Tara Lisner or Chelsea, they are uh the program directors uh that award those uh RP or uh have those processed.

So CAS community services, they're providing actually different services.

So I believe in those four programs, they're providing different services.

So that RP process and their award evaluation that probably would have to be determined with Terry Lisner or uh Chelsea.

Okay.

Um all right, I will follow up then, or if we could if there's somebody on the call that can get the information over to us, um, that would be good.

Uh another question on um if folks can just go into I see that the planner administration lands out exactly 20% of the grant.

Um just wanting to go into the rationale around us budgeting um one-fifth of that total.

And is there any way that we could reduce that so they can go to uh direct services, or is have we budgeted that down to the cent of that 20% being needed?

Uh yes, to the chair.

Um the uh admin budget is pretty tight when it comes to personnel uh expenses in um the administration and implementation of the grant.

Um I know that that is something that OCFO tracks um every year to ensure that we're not exceeding those caps.

Um, and then my understanding at this point is that we are very close to that cap.

So reducing uh any funds from the admin and planning cap would result in us having to uh cut on our personnel expenses.

Gotcha.

Okay, just wanted to double check.

And my last question here um on the new homeless uh allocations, the new homeless allocation exceeds the previous unassigned amount by around 900.

I mean around 95,000.

Um where does the additional funding come from?

Uh to the chair, that additional funding went to the regular public service because uh the rationale for the last year's RFP, they need a certain amount.

And when we got the additional funding, that additional funding of the public service cap um it usually be split amongst the public service and the homeless public service.

Um it usually be split amongst the public service and the homeless public service.

However, the homeless public service only needed certain amount, and that 95,000 was carried over to the public service in the web groups.

Yes.

Okay.

Um to the chair, if I could just follow up.

Uh, there were groups under the neighborhood opportunity fund that were uh they were costed out initially, and so we were able to bring back additional groups to fund with that 95,000.

Okay.

Do you um do you know offhand those additional groups, or could you get that info over to us?

Uh to the chair, I believe it's in the resolution, um, but I can um that information uh um Mr.

Duncan, is that the uh the two uh uh highlighted in green?

Yes, the the highlight in green was the newer uh groups that were brought back and see um this uh Society of Hispanic Professional Engineers Detroit chapter and then eight I see 826 Michigan Inc.

And one more organization.

Gotcha to the chair, it was also Michael organization.

Got it okay.

Thank you.

Thank you for that.

Um that is the end of my questions.

Any additional member waters?

Yeah, I I just want to say um ask who should I contact for a citywide um informational session?

Is it Kayla?

Um to the chair to member waters.

Uh it would be either Tamra Hardy or Kayla Perrin.

Okay.

Would be your contact uh for the neighborhood opportunity fund sessions.

And we can send you the those emails if you need them.

Yes, uh and through the chair, um, please direct all correspondence to me.

Um if you're interested in doing a session, we can certainly set one up for your district as well.

I'm talking city wide.

Oh yes, uh Mr.

Chair.

Listen, I have to say have to say City Y because I don't want the district people jumping on me.

Thank you, Mr.

Chair.

Hold on one second so I can um decipher through the voices.

I hear um uh Miss Daniels.

Uh so Mr.

Chair, we do have Tara Lindser who can answer the questions you had previously about the homelessness contracts or the homelessness allocations and how those um awards were arrived at, if she could be promoted.

Okay, I see her on um one second before we go to her.

I know Miss Hardy, you want you have something additional?

Yes, I was just going to add through the chair that each year we do promote and have a citywide uh presentation going through the um what is it through um the department of neighborhoods?

We yearly do a department of neighborhoods presentation, and that is city wide as well.

Thank you.

Thank you, member Waters.

Mr.

Chairman, thank you.

I I seem to miss it.

I I want something um that's just specifically for that purpose.

The dun tend to have multiple topics.

I just want to focus on on this one topic.

So I'll be in touch.

Thank you.

Um thank you, Member Waters.

Ms.

Lisner, if you could just uh introduce yourself for the record.

Good afternoon, Tara Linsner.

I'm the Housing Stability and Innovations Division Director in the Human Homelessness and Family Services Department.

Okay, thank you.

And I just um I'm not sure if you heard my question before.

Um, but just thinking about um, you know, in the in the budgets that we're seeing that Cash Community Service Social Services was funded across four different separate categories, and just wanting to know the rationale for that level of concentration, and if other providers were considered for the warmest center and street outreach lines.

To the chair, absolutely.

So the CDBG awards that we made to CAS community social services as well as other providers were all done through a competitive NOFA process.

Um the notice of funding availability that we had um in 20 uh in the late 2024, early 2025.

That Nova for the first time um had two-year awards, and this is the second year of funding for um for those contracts.

It was definitely done through a competitive process.

So we do have other um nonprofits that were awarded for street outreach as well as for warming centers.

CAS community has traditionally operated both street outreach warming centers and emergency shelter programming.

And so this was this was uh pretty typical for their applications.

Um, but everybody was scored using the same um the same methodology, and those were awards were presented to council um in 2025.

Okay.

Thank you for the information.

Uh I appreciate it.

Uh Mr.

Corley.

Thank you, Mr.

Chair.

Uh, wonderful questions from you and your colleagues, really appreciate it.

Just a couple of things.

Um I looked at the spreadsheet that was that was attached to the cover letter and a lot of numbers since I did um uh take the math and the map does work out.

So um just wanna let you know about that.

Um just like the city's getting about 7.15 additional um uh 7.15 million in additional monies from HUD uh that's being re uh reallocated in this uh particular um uh budget amendment.

So that's good.

That's a good thing.

Uh line share of that is uh five million going to the home investors uh program, which you know will help with the development, you know, future development in the fiscal 2027, and about 1.7 million for public service.

So those are good things.

Um just to let folks know this resolution used to go to the planning and economic development committee, because before it came from the housing and revitalization department, HRD, when during the budget process when it was explained that the OCFO and Office and Development of Grants would in particular now administer the hundred dollars.

That's why you see this resolution coming to budget finance and audit.

And so this is the way it's gonna be uh from here on.

And uh I'm assuming as well, and maybe Ms.

Daniels can confirm this.

Any changes in block grant, uh Hopwa and these other you know important programs, emergency services grants and all of that, any changes, those requests will now come through budget finance and audit.

Is that the understanding?

Uh through the chair to Mr.

Corley, that is correct.

So any changes in programming or movement of funds, you know, across appropriations will will come to the BFNA committee.

Okay.

So just want the committee to understand that, and that's why it's here.

And as I said before, I used to go to PPED, but now these will be coming through BFNA.

Thank you.

Thank you, Mr.

Crowley, and thank you for that information.

And it is, I'm glad to hear that there's an increase.

So there's concerns.

I had concerns that they go the other way.

So I'm glad that is happening.

Um with that, any further question, or is there a motion on 6.2?

Motion to approve.

It's been a motion to approve 6.2.

Any objections?

Seeing none, that action shall be taken.

Thank you all so much for joining us.

Thank you.

Colleagues, uh, we have we'll go to 6.3, but I'm wondering, um, I don't parliament time.

I'm sorry, Mr.

Chair.

Yes.

You're approving this.

Are you sent it to formal?

Oh, yep.

And there's one other that you need to do.

Yes, ma'am.

My apologies.

Um, is there a motion to approve a center formal with a recommendation to approve on both 6.1 and 6.2?

No.

There's been a motion made.

Are there any objections?

Seeing none, that action shall be taken.

Thank you, madam parliamentary.

Um colleagues, I was going to note we do have 6.3, but I also want to, since we are, as I mentioned, we're since we are in the heat um emergency.

I know uh Madam Mayor did just recently uh release an executive order on additional actions that the city is taking.

So wondering, and I know we have uh director Peck and Paul here.

Would folks be okay if we heard from him really quickly?

Are you all talk okay with that?

Okay.

All right.

Um, do I have to make a motion on that, Madam Parliamentary?

No, because we have okay.

Okay.

All right.

Well, director Park and Paul, please come forward.

Good afternoon.

Good afternoon.

If you can just state your name for the record, please.

Yes, Mr.

Chair, Brian Peckenpaul, Director of the Department of Neighborhoods.

Thank you, and thank you for coming up and being here.

Um, yeah, just wanted to, if you just can give an overview of the um executive order and news that came out from the mayor today, just so the public can be aware.

Yes, I'd be happy to, Mr.

Chair.

So today uh we uh Madam Mayor signed an executive order uh related to a extreme weather response plan for the city of Detroit.

This aligns with our duty to protect public peace, provide public peace, health and safety for persons and property within the city of Detroit, and also aligns to uh MDHHS and other organizations who say that extreme heat is any uh at least three days of 90 degrees and above.

Um and so we're in the middle midst of that.

So we want to uh madam mayor wanted to codify that plan, and so the plan includes um in addition to cooling centers, which all 13 recreation centers are open as cooling centers.

Um Mr.

Chair, we also made sure to take care of District 7.

So Edison Branch Library is open for District 7 residents.

We also are adding uh uh church organization to that uh location for to recognize that there's no rec center in district seven.

So we will continue to add locations, cooling locations throughout the week because the temperatures will continue into the 90s and it may reach 100 today according to the weather.

Um, in addition to the cooling centers, um we want to protect our employees.

So the DPW uh Detroit Water and Sewage Department will take measures to protect their employees by making sure they have uh water liquids, they take break sufficient breaks.

Most of them have access to air conditioned vehicles, so they'll be able to do that.

They will monitor that and they have safety staff that will make sure that is adhered to.

Um we'll make sure BC is monitoring uh buildings along with the Office of Senior Affairs to do well uh well-being checks for our seniors to make sure the buildings have uh cooling and AC equipment operating.

Uh Detroit Water and Sewage Department uh did stop uh non-payment shutoffs, water shutoffs on Monday, knowing the forecast was coming.

So they are part of the uh extreme weather response plan that water shutoffs for non-payment will be stopped when this plan is activated for extreme heat.

And uh that does not include, however, uh Mr.

Chair, uh emergency water shutoffs due to a water main break.

Um that's for non-payment shutoffs, as well as our other departments, D FD, Detroit Police Department, Human Homeless and Family Services, they'll all get activated on different resources and align those with federal, state, and county resources as well.

Thank you, Director.

Appreciate that and thank you for the information.

Any questions from colleagues?

All right, oh thank you, Mr.

Chair.

Um I apologize.

How are we getting the information out?

Uh through the chair, very good question.

Um Councilwoman Johnson.

Uh we are pushing it out through social media as well as the department neighborhoods.

Uh, our staff are pushing out the information and our partners uh as well as our departments and news media.

So uh press release was sent out today about the executive order to the media, as well as uh additional information was sent out earlier this week regarding the cooling centers, as well as some videos were posted from Madam Mayor and other officials regarding uh steps to take during extreme heat.

So we're using all city platforms as well as our TV channel to uh push out this information.

Thank you.

I did find it, and we'll make sure we share it as well.

Thank you.

You're welcome.

Anything else?

All right.

Well, thank you so much, Director, and appreciate you again for coming up to give the information.

You're welcome.

Thank you, Mr.

Chair.

Thank you.

All right.

Um, we will get back to the agenda under from the Office of City Clerk and City Planning Commission.

6.3 is a report relative to the neighborhood enterprise zone certificate application for the rehabilitation of a single family house at 105 Delaware Avenue and the Woodward uh Seward Neighborhood Enterprise Zone.

Is there a motion to discuss?

Motion.

Thank you so much.

There's a motion to discuss.

I believe we have Mr.

Gulak with us.

Good afternoon, Mr.

Chair Chris Gulag, uh CPC staff.

Good afternoon.

I'll turn it over to you.

I guess we're also joined online by the petitioner who's on the screen.

Mr.

Hirokay Wattare.

Mr.

Wattari, uh, good afternoon.

If you can just introduce yourself for the record.

Good afternoon, Council members and members of the government.

Uh thanks for the opportunity.

My name is Haroki Watari.

All right, thank you.

All right.

You may proceed, Mr.

Gulab.

Uh thank you, Mr.

Chair.

I have a brief overview.

Uh I have a brief slideshow, and either need permission to share or your staff could pull it up.

I believe we're making that happen right now.

Here we go.

Okay.

Thank you, Mr.

Chair.

Can you see my screen?

Uh yes, we can.

Thank you, committee members.

Um you have an NEZ certificate request before you it's at 105 Delaware.

This map shows the location.

It's on the south side of Delaware between Woodward and 2nd.

It's New Center Commons area, north of the boulevard, west of Woodward.

Zooming in closer, you can see there's an existing row of houses here.

The red dot is the one in question.

This shows the uh elevation.

It's it appears to be two and a half stories.

Um see the the rear yard does have this elaborate uh staircase.

Um this is confirmed as being in the Woodwards Seward NEZ.

Council established that zone way back in January 2000.

That original NEZ shown as the in the turquoise box here, um, has about 38 acres.

Petitioners before you today, Mr.

Wattare.

Um Mr.

Ratari is based out in New Jersey, but he has uh several properties in Detroit.

He's purchased one that purchased this one and is re in the process of rehabbing.

The building is is older, it's built in 1910, it appears to be two and a half stories.

Mr.

Wattare purchased it in September 2025 less than a year ago for 100,000.

Records show it as an assessed value at 89,000.

So initially, his report has proposed about 140,000 in rehab.

Most of that is for kitchen and bathrooms at 30,000.

But the house is in need of a lot of work.

I think the costs have gone up since the proposal has been submitted.

Uh Mr.

Wattare submitted an additional details.

Um he indicates it does have three stories and a basement, about 1,800 square feet, has five bedrooms.

He estimates the cost of its renovation now is about 175,000 to 200,000.

Uh he is proposing to uh rehab it and then offer it as a rental property, a single family rental property with a monthly rates of about 3500 to 4,000 uh based on other estimates in the area.

That he indicated one reason he's charging this rate is because it does have five bedrooms.

Um regarding parking, the house does have a rear parking from an alley.

There'd be two to three parking spaces there for the for the tenant, and there'd be no parking fee charged regarding accessibility.

Uh the developer indicates uh due to the layout of the building, no specific accessibility features will be planned.

However, he indicated the renter needed accessibility features, he would work with them to add those.

So, in summary, we submitted a report as a resolution for your consideration.

It's in it's in the Woodward Seward NEZ zone.

Um he's not pulled building permits yet.

Staff was recommended approval and resolution is submitted for your consideration.

Thank you, Mr.

Chair.

Thank you so much.

Um Mr.

Wattari, do you have anything to add?

Uh no, nothing else to add.

Thank you so much.

Thank you.

Any questions from members on the committee?

Thank you, Mr.

Chair, and good afternoon.

Um, Mr.

Wood Wattari, the first question is the contraption on the back of that house.

Is that that is those are actual stairs?

It has to be about 30 of them.

Is that what that is at the back?

And are you planning to keep it so because this is a historical property?

I believe that I need to get permission um to remove that if it's possible, but um it would it would depend on that.

Okay, all right.

Um it's it's very interesting, very strange to me, quite honestly.

Um, and so this the house has five bedrooms.

When I first saw the rental rate, my immediate thought was that you were likely going to break it up in and rent rooms, because I'm not certain that you'll be able to get that rate.

What do you do if you're not able to get $3,500 to $4,000 a month for the property?

I mean, I think ultimately at the end of the um it's the market that will determine the final rent, but the estimate was reflected based on um just kind of the rehab, what's being rented at the moment.

So um, like I said, I think it'll ultimately uh depend on what the market will determine.

And you were able to find five bedroom houses in that area going renting for that much?

Not we we have to kind of expand so you found four bedroom units or you mean expand the the area that the radius okay to to be able to kind of pick.

Okay, I'm um quite honestly, I just don't think you'll be able to get that that much to rent the property.

Um are you would you consider renting rooms?

And I'm not sure how that works.

I'm just asking the question.

Um perhaps if it you know if if that's the if that's the pivot that has to occur to um uh for it to work out, yes.

So you I would rather I would rather have it as one whole just because again, this is a historical property, and you know, uh I I like to try to keep it as a you know when you when you break down the rooms or you know to to it it it changes the the feeling of the of the property per se.

I I understand that I have a question for you.

What what brought you to Detroit as an investor?

Yeah, so I I've invested in in Detroit since uh 2000.

Um have had a bunch of I've had a lot of positive experience investing in it.

I like the you know, I've I've been doing a lot of rehabs, uh and and so you know I'm continuing to do this type of investment uh because I do believe in Detroit from a long-term perspective.

I want to be part of the revitalization.

Um this is obviously a historical home, so um this is my first one, I'll be very honest with it from a historical home perspective.

Um, but like I said, I've done other um other I rehab rehabilitated um other several homes uh in Detroit and and and so um you know I want to take on this challenge of restoring a historical property the right way.

So this is why I'm kind of going um trying to work with you guys and going through this process.

And and do you have any other properties in that immediate area?

Albeit it may not be in a historic part of the city or have a historic designation.

Not exactly within that zip code, but in areas um uh in Detroit, like 4209, uh that's the first one I should think of, but yes, uh, not exactly in that in that that new center area, um, but uh around the area, yes.

Do you have any rental properties in the city of Detroit where you get anywhere between 3,000 and $4,000?

Uh no, all my all the homes that I have are three bedroom, one or two baths, um, and they go anywhere between a thousand to uh fifteen hundred dollars.

Uh a lot smaller as well, too from a square footage perspective.

Okay, thank you.

Mr.

Gulag, did you indicate what the um taxes are for the property?

Do we know what the baseline taxes are?

I just indicated that it appears the assessed uh value is 89,000.

Yeah.

Uh 98, I think.

Or 98, yeah.

I think you said 89, but but that's just the assessment.

It was 98.

My report indicate 98,000 is the assessed value.

Mr.

Watare, um the since you purchased the property, you have received a property tax bill.

I I believe.

Can you share?

Do you know what the um property taxes are?

No, I do not.

I mean, I've got to get back to you on that.

Okay.

All right, thank you.

Thank you, Mr.

Chair.

Thank you, Vice Chair Johnson.

Member Waters.

Thank you.

I want to thank uh Member Johnson for that question.

I'd like to know what the property taxes are as well.

Um so you did say that you own other properties, but you didn't tell us how many in the city of Detroit.

How many?

Uh so total um let me let me take a quick look here.

Just give you the right numbers.

Uh five, five, five or six?

Five or six properties.

Okay.

All right.

Um, so what components of the rehab caused the uh increase and then the estimated cost from 140,000 to as high as 200,000.

What components?

Yeah, absolutely.

So um the the amount of um the amount of garbage and obstruction that was in the in the house.

I mean, we're talking about three, three, four stories, if you include the basement.

Uh that just taking that out added um a lot of the funds as well, too.

We also realized that uh the electric and the um the plumbing and such are very old.

Uh and that would probably require kind of a full-on um a replace of replacement as well.

Um obviously the kitchen and and and and and such as well, too.

So I think I think it it's a conservative estimate that we've created.

Um you know, and and that's that's where we we that's how we we ended up with that number.

I think we went from what we started and then we kind of had a deeper look into it, and it just it ended up increasing, and just to be conservative.

Okay.

Now now that my colleague mentioned that what is the thing called?

Do you walk in it or something?

I mean, you know, this big long piece hang from the house.

Do you walk through there or something?

What is that?

I I just want to better understand what it is.

Yeah, um so it it looks like it was used um previously.

It may have been used as uh as another entrance to the second floor uh for folks that so that there were um so folks that were living on the second floor could just go right up that without having to go through the front or the back door, and I believe that's what that's how it was being used.

Um and yeah, uh I kind of um when we looked at that too.

That was the first question I had as in the layout of the house looks great.

Is this something that we can potentially uh remove because um uh no offense to previous architect, but it's it's an ISO.

Okay, so who's gonna perform the um the rehab work?

Um license contracts those that are experienced expected.

Yeah, I work with licensed contractors in Detroit.

I I I work with licensed contractors in Detroit.

I have um I have a team that has done historical um uh houses in the past.

Uh and so um so I'll be working with them to um to to do the rehab.

They are uh based out of the based in Detroit.

Okay, and they are used to working with you know historic homes.

Correct, they have experience with historic homes.

Oh, okay.

Well that's good.

So what's your timeline again?

For completing uh well, the timeline I I you know we should be we would love it if if we could uh kind of get started within uh you know as soon as possible, but uh we're looking at about um about eight an eight to nine month timeline again.

The this is just from the internal part from the external part.

Uh I know that there are other um processes that have to be taken.

Um so that might there might be a delay in that.

Okay, all right.

Okay, well, thank you.

Thank you, Mr.

Chairman.

Thank you, Member Waters.

Um, just a few questions from me.

On the accessibility aspect, I understand you indicated that if there's a renter who needs uh features, um, you've worked with them.

Um but thinking about baseline IDA ADA features, um, like a step-free entrance, wider doorways, um, accessible bath, uh, given the budget and that the exterior is being substantially gutted.

Um has there been any thoughts on just doing that anyway?

Um, since you're since this substantial work going into this already.

I'm probably saying is that there was no accessibility modifications that was currently planned at the moment.

Um and again, this is part being that it it is a historical home and and just having to um to to request that um we just didn't know, so that's the reason why um we're we're not trying to make any changes externally for that reason.

Um but again, uh as mentioned, if there is you know, if there is a future occupant that creates a need for a a reasonable accommodation that is appropriate and and feasible for the property, we would definitely evaluate it and then also obviously complying with the applicable historical uh preservation requirements.

Yeah, I understand.

So I'm gonna restate the question, but first I want to ask since uh with the rear uh stairs and such.

Are you working with the historic uh district commission currently?

Um we we have reached out, we haven't we haven't um come down to the you know uh I guess uh that part of the conversation at the moment yet.

We we we we've asked you know uh preliminary preliminarily what we can do and what we can't do.

Um but uh but we haven't spoken to that to that staircase per se at the moment.

Okay.

Um as those conversations go forward.

So my question, um understanding that you know there's a lot of issues where um or a lot that you may not be able to change externally when it comes to historic um buildings.

A lot of what I asked was about intern um the interior of you know, wider bathtubs, um the or accessible bathtubs, wider doorways and such in that way.

Uh so it seems like that may be more feasible.

The reason I'm asking is that you know, I we often get folks saying that they will work with renters if that need is there.

Um, but we know across the country, but including Detroit, many of our residents are um have disabilities or um have mobility issues, and having um, especially with the rent you are looking for, I think you want to make sure that the pool is as uh wide as possible.

So having an already accessible um building or home would be in the best interest.

So it sounds like that has not been the thought process right now, uh, but would highly recommend um now, especially at your point where you are in initial conversation with the historic district commission and your initial aspect of just um figuring out how the rehab will look uh would greatly encourage and appreciate if that is a part of that thought process.

Um another question on the other Detroit properties.

Do all do any of those properties have NEZ certificates?

No, they do not.

Okay.

And this is a historic um home.

It appears that this is the Henry F.

Heard house.

Um just going into, and this was an illustrator um that did work in this in Detroit.

Other than you know, of course, you're in those beginning conversations.

Are you are is there anything in the home or any features or anything but that makes it historic that you're trying to preserve?

Uh I you know, I think from the external perspective, you know, it's it's got that uh the 1910s, 1911s, uh, 1915s, I guess, type of you know, architecture.

That's the that's the thing that's the uh that's our focus in trying to trying to um preserve that um architecture of the property.

Okay, all right.

Um that is it for my questions.

Any additional is there a motion on six point three motion to approve there's been a motion to approve and sent to formal with a recommendation to approve on six point three.

Any objections seeing none that action shall be taken.

Thank you so much and best of luck, especially with the Mr.

Chair.

I just wanted to share.

Um it looks like the property taxes are slightly over $4,000 a year.

Okay.

All right.

Okay.

Thank you, Vice Chair Johnson.

All right, thank you all.

Thank you.

All right.

Now to move us on to 6.4.

Um this is from the legislative policy division.

Uh this is uh report relative to the substitute resolution concerning property tax rate reductions.

Um is there a motion to discuss?

Uh there's been a motion to discuss.

Uh so I know we have the um language in front of us.

Um I'll defer to LPD if there's anything else needed here, but I do have some questions on the Mr.

Chair.

Um I do not think there's anything uh else needed unless council members might have some additional questions or suggestions on how you want to maybe further amend the resolution, but this is based on feedback from council member Callaway's office.

So we've we've heard that this seems appear to be fine, that's before you.

Okay, got you.

I just um definitely uh I just have a question on this is a resolution.

I understand that I'm just looking at the language on regarding the reduction of uh general operating operator millage that's here in language and also which um may require a reduction in the general fund budget.

Um so that's a concern there if we don't have the revenue to backfill a reduction of millage.

That's um understanding that the uh debt millage we're continuing to pay that off, and we've had that discussion with that.

Um, but that's just my only concern here with the resolution.

But I just wanted to um lift that up.

But any other discussions, uh member waters.

Um through you, Mr.

Chairman.

I just want to ask um LPD if they've had an opportunity to review what is being proposed and Lansing in terms of property tax reductions.

You may recall um Speaker Hall talking about the fact that you know, although he ended up tie-barring it to something else, but I just kind of want to know your thoughts on on what he's proposing, or if you haven't had an opportunity to review it yet, if you could, and then just let us know.

Thank you, um for that.

Um, Councilmember uh Waters to the chair.

So um my understanding is that the legislation that Speaker Hall um has proposed is in limbo right now, and so what's probably going to happen is it's it's gonna be taken up after the elections.

Um and as you say, it is tied barred to some other um, you know, uh tax abatement um renewals and uh the transformational brownfield, you know, proposal is tied to a number of things, and my last read of it is that um there's no revenue source that's been identified for the property tax cut.

Now I'm sorry I can't recall his actual property tax cut proposal, so I apologize for that.

I would have to get back with you on that, but I do recall that you know that there's some concerns that there's no revenue, you know, source to to fill in the the fill in the hole.

So that that's that's a problem, you know, as I see it right now.

Um, but looks like it's in limbo until after the elections.

Um Mr.

Chairman, I'd like to make a motion asking LPD to to do an analysis of of that bill.

Um and what the impact would be on the city of Detroit if it should pass.

There's been a motion for LPD to um conduct an analysis on the proposal put forth by uh speaker hall in the Michigan legislature on property taxes and the impact it would have on the city of Detroit.

Are there any objections?

Mr.

Chair, we wonderful get that in writing.

Okay, we'll follow up in this.

See no objections that action shall be taken, and member waters will follow up in writing.

Thank you.

Any further member waters?

Uh that's it.

Okay.

Vice Chair Johnson.

Mr.

Chair, um, thank you.

Just wanted to share with you, and I'm not sure if LPD has spoken with the administration about this resolution, but um in recent years there have been reductions to the uh millage um in an effort to reduce property taxes uh for Detroit residents.

I think this is partly why we were having the discussion not only about the entertainment tax but also about the local option sales tax so that we can start taking um all of our taxes from property tax revenue um to disperse it a little bit more uh so that our property taxes is not always the entity that bears the brunt of any taxes that we're able to um add, just looking to generate revenue, as we know there are some proposals that are on the ballot that will add to our property tax millage.

Um and so it's it's it's important for us as we sit here and have the the NEZ request, um various tax abatement requests that come through PED for us to have a robust conversation about this, how we uh generate revenue recognizing all of the the needs that there are throughout the city, and so um I do know during budget there was a discussion um that where it was just indicated that there needs to be a robust round table discussion about um how we generate revenue for the city to be able to address uh the services that our residents deserve.

Um and so I'm hopeful that that round table will be um assembled soon and those discussions will be had.

I'd love to be a part of the discussion as we were having the conversations around uh the local option sales tax that uh we were trying to figure out how do we make it so that it's more or less a tourist tax um for visitors who come into the city and patronize uh all of the businesses, establishments that we have been supportive of in helping to develop in the downtown area.

So that was the the rationale behind it, but certainly looking for it to help relieve our residents of the large uh property tax bills that we've been seeing because property values have increased and our millage rate is as high as it is.

So um just wanted to put that on the floor.

Uh thank you, Mr.

Chair.

Mr.

Chairman.

Thank you.

Um for that, Member Waters.

Uh just uh on that Vice Chair Johnson, uh definitely appreciate that, and I agree that we we need to get our property tax uh or millage down.

I I just for me it was the aspect on the resolve um that the Detroit City Council pledges itself to reduce to the reduction of property taxes, whether debt service millage or operating tax millage to achieve the goal after adequate property tax relief.

So with the absence of uh that also the pledge like that we would backfill that with additional revenue, that's what especially on the operating side, knowing that we have decreased the debt millage and we should continue to do so.

I think us committed to uh reducing the operating aspect without uh also that commitment to uh backfill it will get us in a place where we would have to reduce a budget um on the uh services and such.

So just want to add that, but member waters.

I mean, and both of you bring up some really great points.

So I want to know if we've done any type of uh fiscal analysis because you know, any time you're talking about reductions over here, what's gonna happen over there, Mr.

Chairman.

You said it yourself.

Um we need a fiscal impact.

Um Vice Chair Johnson, you request that I have two things I've done specific to this particular resolution for you, Mr.

Chair.

Um okay, I'd like to uh make a motion to request the LPD do a fiscal analysis of a of this particular resolution.

So as we look at reducing the millage rate, um, the fiscal impact that will have on the city's general fund.

And we will certainly submit that in writing.

Thank you.

There's been a motion to have a fiscal analysis done by LPD on the reduction of the millage rates in accordance to this resolution.

Seeing none of that action shall be taken.

Anything further.

Is there any motions on the line item 6.4?

Or is there a desire to bring back as we get the fiscal analysis?

Motion to bring line item 6.4 back in two weeks.

Um seeing no objections, that action shall be taken.

And I'll also follow what member Callaway on uh my concerns around that.

I just want to just make sure that we're addressing the um revenue side.

All right.

Um thank you all.

That uh bring us to 6.5.

Um this is from my office uh request information on implementation and status of the 2023 property tax reform ordinance.

Uh is there a motion to discuss motion uh for LPD?

Uh do you have a timeline on this item?

Thank you, Mr.

Chair.

So um we're gonna need to reach out to various you know areas.

Um the assessors, um, probably the office of chief financial officer, um most likely the law department.

We probably would like to also reach out to the um the group that uh yeah, the coalition for property tax justice.

So this is gonna be probably a large project.

So can you please bring this back?

Um that'd be the I think the third week in September, September the 23rd.

Well, that'd be great.

Motion.

All right, there's been a motion to bring this back um on September 23rd.

I don't know the number of weeks, but we'll say the date.

All right, there's been a motion to bring back 6.5 on September 23rd.

Uh is the discussion or okay.

All right.

Okay.

All right.

Um seeing objections that action shall be taken.

Thank you.

Um 6.6 is from Member Benson.

Uh submit a memo relative to the budget modification for DynaWitt confidence program.

We've been asked to bring this back in two weeks.

Motion.

It's been a motion to bring back 6.6 in two weeks.

Any objections that action shall be taken.

And I move us on to member reports.

Uh member waters.

No report.

All right, Vice Chair Johnson.

No report.

Okay.

And I will also say no report.

Uh with that, I hope folks have a safe uh holiday weekend.

Um please do stay cool and please do share resources that we heard today with your neighbors.

Um, seeing no further business before this committee, is there a motion to adjourn?

It's been a motion to adjourn with no uh objections this committee stands to journal.