City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, FEBRUARY 21, 2012 IN CITY HALL Mayor Richard J. Notte called the meeting to order at 7:30 p.m. Mayor Notte led the Pledge of Allegiance to the Flag and Walter C. Blessed, City Clerk, gave the Invocation. Council Members present at roll call: Deanna Koski, Richard J. Notte, Joseph V. Romano, Maria G. Schmidt, Paul Smith, Michael C. Taylor, Barbara A. Ziarko. Also Present: Mark D. Vanderpool, City Manager; Jeffrey Bahorski, City Attorney; Walter C. Blessed, City Clerk; Robin Palazzolo, Recording Secretary. APPROVAL OF AGENDA Moved by Koski, seconded by Romano, to approve the Agenda, as presented. Yes: All. The motion carried. REPORT FROM CITY MANAGER Mr. Vanderpool reported on staff from Sterling Heights Economic Development have been appointed to the SEMCOG Redeveloping Commercial and Industrial Corridors Task Force. The Task Force will develop strategies to help reinvigorate underutilized and vacant commercial and industrial areas along major transportation corridors. By working with multiple Southeast Michigan communities, among others, the SEMCOG lead group will aim to address challenges faced in areas throughout the region by developing a resource toolkit focused on planning issues and marketing to promote development. Mr. Vanderpool reported that the Sterling Heights Police Department will be working with the State Police and Macomb County Sheriff’s Department to implement a new grant aimed at reducing crime and traffic accidents. Sterling Heights was recently ranked in the top 10% of the safest cities nationwide. This is one of many proactive initiatives the City of Sterling Heights is implementing to preserve our safe city distinction. Mr. Vanderpool reported on the City’s 22nd Annual Sterling Coffeehouse series, which offers a variety of programs to satisfy music lovers. These concerts will be held on March 4, March 11, March 18, and March 25 and will take place at the Recreation Center in Dodge Park, at Regular City Council Meeting Tuesday, February 21, 2012 Page 2 7:00 p.m. Everyone is invited to attend. For ticket prices and additional information, please contact the Parks and Recreation Department at 446-2700. Mr. Vanderpool reported on a Public Works update. Having had a highly unusual winter, without much snow, we have been able to catch up on several projects. A graph highlighting the work performed was shown at this time. We have stepped up our tree trimming significantly, increased tree removal efforts, installed tons of road patch, graded miles of gravel roads, and cleaned many ditches and storm basins. Mr. Vanderpool would like to recognize our Public Works Department, who have a positive impact on all of us day in and day out. Mr. Vanderpool reported that assessment notices will be going out to all property tax owners in our city on March 1, 2012. They will reflect six years of housing value decline. When taxes go out in July, they will be at their lowest level in 10 years. This is good news for property tax payers, but also presents an ongoing challenge for the City as we move forward. For additional information, please contact our Assessing Office at 446-2340. Mr. Vanderpool reported on Velocity. The City has been working very hard to grow the defense corridor. General Dynamics has invested millions of dollars in Sterling Heights and continues to invest. BAE is ready to open their doors next month with over 600 new high paying engineering jobs. Last week, the State of Michigan held their grand opening of the Michigan Defense Center at our Velocity building in Sterling Heights. Mr. Vanderpool highlighted the event by showing a video at this time. He would like to recognize the Mayor, City Council and the Local Development Finance Authority for their proactive efforts in securing this important State office and positioning Sterling Heights for continued defense related investments long term. Mr. Vanderpool and the City Attorney are requesting that the City Council convene in closed session at the conclusion of the regular agenda to discuss labor negotiations. PRESENTATION Councilwoman Ziarko, along with Parks and Recreation Supervisor, Joel Casey, presented the Nice Neighbor Award to Nick Crook in recognition of his efforts to assist the community and contributions in making Sterling Heights’ overall quality of life second to none. ORDINANCE INTRODUCTION Regular City Council Meeting Tuesday, February 21, 2012 Page 3 1. Mr. Sal Conigliaro, Public Works Director, made a presentation. He stated in 2010, we went out for bids for a new refuse contract; however, we did not recommend going forward with a curbside recycling program at that time. Since then, City Hall and DPW have continued to receive calls from many residents who wish to have a curbside recycling program. Based on this demand, and the volumes that we take in at our three recycling centers, we continued to review this issue. A voluntary, subscription-based program gives residents the option to sign up for the program. It does not require residents to sign up and it does not cost anything to those who do not wish to recycle. We have received bids for a subscription-based recycling program, and he is here tonight to make a recommendation to City Council to grant a license for the exclusive use of the rights-of-way to the selected vendor, Waste Management, to provide a single-stream subscription-based curbside recycling program. The term of the contract is for six years, which would carry us through April 30, 2018. There are no plans, at this time, to shut down the three current recycling centers. He stated Mr. Patrick Greve, with Waste Management, is here tonight with a presentation. Mr. Greve introduced Mr. Andrew Korman and Mr. Duane Maladecki, with Recyclebank. He also introduced Mr. Keith Pine, Director of Operations for the Detroit east hauling district, who is responsible for implementing the program on the street. Mr. Greve showed a PowerPoint presentation at this time. Some highlights included: Waste Management will provide every- other-week curbside recycling collection on a designated day, participation is optional for each individual resident, one 96-gallon recycling cart with wheels is provided to participating residents, all materials can be comingled in the cart, participating residents can sign up for Recyclebank rewards and obtain valuable discount coupons for use at area merchants, and each participating resident will be billed individually for the service. This is available for commercial and industrial locations, as well. Some acceptable materials include aluminum, metal cans, plastics, pizza boxes, and phone books. There is a one-time account set-up fee of $5 for each participating resident. There is also a fee of $4.95 per month for each participating resident for the first year of service. These fees will be billed directly to the resident by Waste Management. Residents can choose to pay quarterly or annually. Mr. Andrew Korman, with Recyclebank, stated their mission is to help individuals and communities realize a world where nothing is wasted. Residents in Sterling Heights who Regular City Council Meeting Tuesday, February 21, 2012 Page 4 subscribe to this single-stream subscription-based curbside recycling program will have the ability to earn valuable Recyclebank points based on the amount of volume that they recycle. For each pound of material that they recycle, they will receive 2.5 Recyclebank points. These points can be redeemed for hundreds of rewards available in their on-line catalogue. Some of the rewards include groceries, restaurants, and entertainment. When the resident signs up for the service through Waste Management, they will receive simple instructions on how to access the system. Active participants in the program see approximately $165 in savings annually. Most of the rewards require some co-spend. This is very popular because it can offset some of the fees associated with the program itself. Mr. Greve stated in terms of requirements, their goal is to have a minimum of 5,000 residents sign up for this program; however, that number is flexible. There will be a one-year requirement of those who sign up. There is no risk for the resident. The program is turn-key for the City. Waste Management will deliver the cart, program instructions, guidelines, and a welcome packet to each participating resident in advance of the first service day. They are looking to begin curbside service in the fall of 2012. Mr. Gerald Sieja, Mr. Jeffrey Norgrove, Mr. Harry Marchlones, and Mr. Giulio Russo expressed their concerns. Mr. Greve responded to resident’s concerns at this time. Moved by Schmidt, seconded by Ziarko, RESOLVED, to: A) Introduce the ordinance amending Chapter 23 of the City Code by adding Article IV to govern the grant of an exclusive license for implementation and operation of a single-stream subscription-based curbside recycling program within the City; and, B) To accept the proposal by and grant a subscription-based curbside recycling license to Waste Management, Inc., 48797 Alpha Drive, Suite 100, Wixom, MI 48393, for the period of May 1, 2012 through April 30, 2018, contingent upon adoption of the ordinance amending Chapter 23 of the City Code. Councilwoman Schmidt inquired if a bin was stolen or busted, is there a replacement fee for that bin, how do they monitor who has paid to participate as opposed to who has a bin out, and if you skip two weeks, do you still get the points. Mr. Greve responded, generally speaking, it is a no questions asked program unless it is very obvious a resident busted the container on Regular City Council Meeting Tuesday, February 21, 2012 Page 5 purpose. If a container is stolen and another resident has put it out by their curb, each container has an I.D. and each truck has an onboard computer that loads in, by address, every account that is participating. If they see a bin, but there is no address in the computer, the I.D. on the bin will tell us what address that bin should be located at. If a resident skipped two weeks, the resident still gets the reward points, as the program is community based. Councilwoman Schmidt inquired if this is in any way tied to our refuse contract. Mr. Conigliaro responded this is in no way tied to our refuse contract. Councilwoman Schmidt inquired why is only clear glass acceptable, and not green or brown glass. Mr. Greve responded the material recovery facility would prefer to get clean, clear glass; however, they will accept colored glass if it is in the container. Councilwoman Schmidt stated if people are willing to pay for this, then she is willing to vote yes on it, as this costs the City nothing. Councilwoman Ziarko inquired if a resident signed up for the program, is it a one-year contract for the resident, and will the recycling pick-up coincide with their regular refuse pick-up. Mr. Greve responded it is a one-year contract for the residents and the goal of the program is to have the recycling pickup coincide with their regular refuse pick-up. Councilwoman Ziarko inquired is there a program for a small office if they wanted to participate and would it be the same cost to them. Mr. Greve responded yes, the program cost would be the same and it would be the program cost times the number of carts that they have. Councilman Romano stated in the case of garbage cans, they can get blown into the street by the wind and he inquired after the refuse has been collected, where will these containers be placed. Mr. Greve responded, ideally, they will replace the container on the curb or on the apron approach to the driveway. Councilman Romano stated most of the residents are very satisfied with Waste Management and if that continues with the recycling, then he thinks we are going to get along really well. Councilwoman Koski stated the cost is $4.95 per month, and inquired if you pay quarterly or annually, is there an additional fee that has to be paid. Mr. Greve responded if you pay quarterly, there would be an administration surcharge that could fluctuate with Waste Management from year to year. There would also be a fuel surcharge that would apply to quarterly bills. To pay annually would be the lowest cost option for the program. Regular City Council Meeting Tuesday, February 21, 2012 Page 6 Councilwoman Koski stated regarding Recyclebank, the first two years are free and inquired is there a charge after this two-year period. Mr. Greve responded after the two-year period, there would likely be a charge; however, based on participation as the program grows, this rate can be adjusted. Councilwoman Koski inquired to Mr. Bahorski regarding license suspension and revocation on page three of the ordinance, it states if there is any offending activity, it is at the City Manager’s discretion to suspend the license, but then it is taken before the Solid Waste Commission. What happens if the Solid Waste Commission is not available or does not have a majority to hold a meeting. Could we possibly have a default party listed there if the Solid Waste Commission is not available, and make the City Council the default party. Mr. Bahorski responded we could certainly make an amendment to the ordinance to reflect that, as long as everyone on Council concurs with that, and we will bring it back at the time of the adoption of the ordinance. Councilman Smith stated at the moment residents have two options, either to put the trash out at the curb or go to a recycling center on their own and not be charged a fee. Time will tell whether or not we get the 5,000 people needed to sign up for the program. Yes: All. The motion carried. CONSENT AGENDA 2. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda: A. To approve the minutes of the Regular Meeting of February 7, 2012, as presented. B. To approve payment of the bills as presented: General Fund - $724,476.05, Water & Sewer Fund - $146,480.95, Other Funds - $1,114,021.34, Total Checks - $1,984,978.34. C. RESOLVED, to approve final payment to James P. Contracting, Inc., 67222 Van Dyke Avenue, Washington, MI 48095, in the amount of $26,316.54, plus interest on retainage, for the 2011 Asphalt Pavement Repair Program, City Project #10-211. D. RESOLVED, to award the bid for the hauling and disposal of street sweepings to Dale’s Disposal, 31475 Utica Road, Fraser, MI 48026, at the unit prices bid for a two-year period. E. RESOLVED, to accept the proposal by Diagnostic Innovations, LLC, 2843 Hilton Road, Ferndale, MI 48220, for a fleet diagnostic software system at a total cost of $14,300. Regular City Council Meeting Tuesday, February 21, 2012 Page 7 F. RESOLVED, to approve Traffic Control Orders #4-40 and #4-41 requiring north and southbound traffic on Kimberly Drive and Huntley Drive to stop at the intersection with Ina Drive. Yes: All. The motion carried. CONSIDERATION 3. Mr. Matt Schmidt, City Assessor, made a presentation. Experi-Metal Inc. last appeared in front of City Council on October 18, 2011, when they were approved for an Industrial Facilities Tax Exemption Certificate relating to a proposed personal property investment of just over $9 million. According to the City’s existing tax abatement program guidelines, Experi- Metal Inc. qualified for a recommended tax abatement term of 12 years. However, based on the length of the real property lease back at the time of approval, he recommended the term of the tax abatement be for a term of 4 years. On October 20, 2011, Experi-Metal Inc. signed a new 12 year real property lease at this location. Experi-Metal Inc. is appearing before City Council tonight to request an extension of 8 years on the tax abatement, which was approved by Council four months ago. He stated Ms. Valiena Allison, President/CEO of Experi-Metal Inc., is available for any questions Council may have. This proposed $9 million investment will result in an increase of approximately $178,000 in new City tax revenue over the extended 12 year tax abatement term. This will also include the creation of 30 new jobs in the city. Moved by Romano, seconded by Taylor, RESOLVED, that the application for an extension of the personal property component of Industrial Facilities Tax Exemption Certificate #2011-515 by Experi-Metal Inc. at 6385 Wall Street is hereby approved for a period of eight years in accordance with the guidelines established by City Council and the Mayor and City Clerk are hereby authorized to sign, as applicable, all documents required in conjunction with this approval. Councilman Romano inquired to Mr. Schmidt how long has Experi-Metal Inc. been located in Sterling Heights. Mr. Schmidt responded Experi-Metal Inc. has been at their current location since 1976. Councilman Romano inquired in those 36 years, how much has Experi-Metal Inc. paid in taxes to the City. Mr. Schmidt responded he did a calculation for the last ten years and in that time Regular City Council Meeting Tuesday, February 21, 2012 Page 8 Experi-Metal Inc. paid over $385,000 in City taxes and approximately $1.5 million in total taxes. Councilman Taylor stated he wanted to take this opportunity to thank Ms. Allison and her company for this investment and for continuing to support the City of Sterling Heights. He stated he is more than happy to continue to extend this abatement and he looks forward to seeing more investment in Sterling Heights from this company. Councilman Smith inquired to Mr. Schmidt where does the $9 million stack up in terms of tax exemptions, and why are we giving this company a tax break. Mr. Schmidt responded, excluding the major automobile manufacturers, as far as investment goes at one location, a $9 million investment in personal property is on the high end. Mr. Schmidt also stated the goal of the program is to spur industrial investment and make them more competitive. They are trying to make their company stronger by investing in technology, which makes them a better company, while they are also creating jobs. When they create jobs, in conjunction with the investment, they are creating jobs that are going to be there for a longer time. Councilman Smith inquired what are the most employees Experi-Metal Inc. has employed in the past three years. Ms. Allison stated she would guess the number to be approximately 140. Councilman Smith inquired in the request made by Experi-Metal Inc., there is a number of promised new jobs; what is that number. Ms. Allison stated she has committed to 30 jobs, and of that 30 she has already hired 36 and retained 28. Councilwoman Schmidt inquired to Mr. Schmidt, who sets the guidelines for tax abatements. Mr. Schmidt responded City Council has approved the tax abatement guidelines. Councilwoman Schmidt inquired does the State set the parameters. Mr. Schmidt responded the State sets the guidelines. Councilwoman Schmidt inquired per City Council guidelines and the State guidelines, does Experi-Metal Inc. quality for an additional 8 years on this tax abatement. Mr. Schmidt responded yes. Councilwoman Koski stated Experi-Metal Inc. qualified for this tax abatement. They met the State law and Council program guidelines on October 18 of last year. By them executing the Regular City Council Meeting Tuesday, February 21, 2012 Page 9 lease a couple of days later, they qualify to receive the full 12 years. This Council is trying to encourage businesses to locate here in Sterling Heights. She feels this company has done a tremendous job and wants to see them succeed. She wishes them good luck and supports this extension. Councilwoman Ziarko believes in tax abatements because she wants businesses to stay open in Sterling Heights. Ms. Allison and her company have certainly proven that they have been a good corporate partner to our community. Ms. Allison is not getting a free ride, she meets all the qualifications of this Council and the State, and she should get the tax abatement. She wishes Ms. Allison and her company well in this city. Councilman Romano stated he agrees 100% with Mayor Pro-tem Taylor, Ms. Koski, Ms. Ziarko, and Ms. Schmidt and he wishes good fortune to Experi-Metal Inc. in Sterling Heights. Mayor Notte stated he is also in favor of tax abatements. The Sterling Heights City Council put these guidelines together in the early 1990’s. We made our tax abatement guidelines even more restrictive than the State. Experi-Metal Inc. is part of the growth of Sterling Heights. He appreciates companies like Experi-Metal Inc., who have been here in Sterling Heights since 1959. Yes: Romano, Taylor, Koski, Notte, Schmidt, Ziarko. No: Smith. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Harry Marchlones – Contract negotiations; Drop program; Size of Sterling Heights; Police officer wages; FBI agent wages; Longevity program; City of Troy; Freedom of Information Act requests; Sick days; Transparency. Mr. Giulio Russo – Development between Poplar and Higgins; Tax abatements; Investors; Homeowners; Shopping centers. Mr. McCabe – Drop program; Starting salary of police officers. Mr. George Hamzik – Signs; Fees; Ordinance amendment. Mr. Gerald Sieja – Recycling centers; Waste Management contract; Bingo Hall at Schoenherr and Hall Road; Budget meetings; Contract negotiations; City Council meeting packets; Car insurance; Tax abatements; Quality of life. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL There was no report from Mr. Bahorski at this time, just a reminder for closed session. Regular City Council Meeting Tuesday, February 21, 2012 Page 10 Mr. Vanderpool responded to resident’s questions and spoke regarding employee wage freezes, additional concessions, the housing market collapse, the statewide fiscal problem, property taxes, revenue sharing cuts made by the State, longevity, employee service, quality of life in Sterling Heights, the City’s multi-year financial plan, AAA bond rating, State’s financial watch list, tough decisions, and doing more to help small businesses. UNFINISHED BUSINESS There was no Unfinished Business discussed. NEW BUSINESS 1. Councilwoman Koski stated the Sterling Heights Police Explorers are having a fundraiser from 6 p.m. to 8 p.m., February 27, 2012, at Mongolian Barbeque, located on Hall Road. The cost is $25. For additional information, please contact Community Relations at 446- 2489. 2. Councilman Taylor spoke regarding the sign ordinance. He stated his take on the sign ordinance is there are some convoluted areas to the ordinance. He would like to see the ability for residents to recover signs be maintained in the ordinance. He feels this Council, including himself, thinks this is a good ordinance. He hopes they can work together and make a few minor tweaks to the ordinance, in order to balance the public’s need for free speech versus the desire to not have blight. 3. Councilman Smith spoke regarding Experi-Metal Inc. He stated he called Ms. Allison at Experi-Metal Inc. last week and expressed his intent to ask questions at tonight’s meeting. He stated Sterling Heights is industrial friendly, and also spoke regarding cost of labor figures. 4. Councilwoman Schmidt stated the Sterling Heights High School Band is having a Noodles for New York fundraiser on February 28, 2012, at the high school. It is being catered by Antonio’s, from Sterling Heights. The spaghetti dinner will cost $12.50 at the door and you can attend the vendor show for no cost at all. CLOSED SESSION PERMITTED UNDER ACT 267 OF 1976 Moved by Ziarko, seconded by Schmidt, RESOLVED, to recess to closed session to discuss labor negotiations. Roll call vote: Yes: Ziarko, Schmidt, Koski, Notte, Romano, Smith, Taylor. Regular City Council Meeting Tuesday, February 21, 2012 Page 11 The motion carried. The meeting was recessed at 9:57 p.m. ADJOURN Moved by Ziarko, seconded by Taylor, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 11:15 p.m. WALTER C. BLESSED, City Clerk