City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, MAY 15, 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; Madeline L. Ranella, Recording Secretary. APPROVAL OF AGENDA Councilwoman Schmidt pulled Item D from the Consent Agenda and made it Consideration Item 4. Moved by Koski, seconded by Romano, to approve the Agenda as amended. Yes: All. The motion carried. REPORT FROM CITY MANAGER Mr. Vanderpool reported the City held its 2nd Pride & SHINE Day on May 5. During this event more than 75 volunteers representing churches, businesses and neighborhoods helped make it a success by offering their time and assistance helping residents in nearly 20 neighborhoods with the maintenance of their properties. The SHINE Program received assistance through a $4,000 Home Depot grant to purchase equipment for the cleanup. In addition, Home Depot employees volunteered for the day. Mr. Vanderpool reminded residents, under the City’s new dog license regulations, dog owners are required to register their pets by June 30th or face a $550 fine. Licensing helps the City keep track of the number of pets in the community and can benefit dog owners in the event their pet is lost. Last year over 11,000 dogs were licensed, which is double the amount prior to the new ordinance. Mr. Vanderpool reported on upcoming City events: Regular City Council Meeting Tuesday, May 15, 2012 Page 2 Sterling Heights Police Department Law Day Ceremony to be held on May 17, 2012. The ceremony will begin at 10 am at the pavilion in front of the Police Department. Memorial Day Celebration May 28, 2012. The ceremony begins at 9:00 am in front of City Hall followed by the parade at 10:00 am along Dodge Park Road south from City Hall to just north of Metropolitan Parkway. For the 1st time ever, the City’s Cultural Commission will salute a true hometown hero posthumously – SSGT Ergin Vedat Osman, who was killed while serving in Afghanistan. A military flyover from Selfridge Air National Guard Base will help kick off the parade while nearly 100 groups will be participating. This year’s parade theme is “Michigan Veterans, 175 Years of Service”. The Cultural Commission will present awards for Best Parade Floats and Bands. Mr. Vanderpool, along with the City Attorney, is requesting that the City Council convene in closed session at the conclusion of the regular agenda to discuss labor strategy and labor negotiations. CONSENT AGENDA 1. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda, as amended: A. To approve the minutes of the Special Meeting of April 24, 2012 and Regular Meeting of May 1, 2012, as presented. B. To approve payment of the bills as presented: General Fund - $271,382.35, Water & Sewer Fund - $1,809,075.12, Other Funds - $776,044.24, Total Checks - $2,856,501.71. C. RESOLVED, to reject the bids received and authorize the Purchasing Manager to proceed with a re-bid for water service installations and repairs. D. Moved to Consideration Item 4. E. RESOLVED, to receive the lawsuit, Kinney vs. City of Sterling Heights; Macomb County Circuit Court Case No. 12-1634-NO. F. RESOLVED, to receive the lawsuit, Gabrail vs. City of Sterling Heights; Macomb County Circuit Court Case No. 12-1684-NO. G. RESOLVED, to receive the lawsuit, Shakir vs. City of Sterling Heights; Macomb County Circuit Court Case No. 12-1833-NO. Regular City Council Meeting Tuesday, May 15, 2012 Page 3 H. RESOLVED, to approve the purchase of a 2012 Chevrolet Tahoe from Berger Chevrolet, 2525 28th Street SE, Grand Rapids, MI 49512 through an Oakland County cooperative bid at a total cost of $25,885.69 and authorize a budget amendment to use Public Safety Forfeiture Fund – State Forfeiture reserves and increase expenditure account #27732322-984000 (Public Safety Forfeiture Fund State Forfeiture – Vehicles) in the amount of $14,225.69, representing the net purchase cost to the City after receipt of insurance program monies. Yes: All. The motion carried. CONSIDERATION 2. Mr. Harry Marchlones suggested if there are a declining number of people going to the movie theatre, they should investigate the possibility of lowering their prices. If the liquor license transfer is granted this evening and they find it’s not working, he hopes the license would go to another establishment. There was a motion on the floor from the previous meeting: Moved by Romano, seconded by Taylor, RESOLVED, that the request to transfer ownership of an escrowed 2011 Class C liquor licensed business with Dance- Entertainment Permit, located at 42300 Van Dyke, Sterling Heights, MI 48314, Macomb County, from Ping On of Sterling Heights, Inc. to American Multi-Cinema, Inc. (A Missouri Corporation) transfer location to 44681 Mound, Sterling Heights, MI 48314, Macomb County; and New Specific Purpose Permit (Entertainment) for Sundays, 9:00 to 12:00 p.m. be considered for approval. Councilman Romano withdrew his motion. Moved by Taylor, seconded by Notte, RESOLVED, that the request to transfer ownership of an escrowed 2011 Class C liquor licensed business with Dance- Entertainment Permit, located at 42300 Van Dyke, Sterling Heights, MI 48314, Macomb County, from Ping On of Sterling Heights, Inc. to American Multi-Cinema, Inc. (A Missouri Corporation) transfer location to 44681 Mound, Sterling Heights, MI 48314, Macomb County; and New Specific Purpose Permit for Sundays, 9:00 to 12:00 p.m. be considered for approval. Regular City Council Meeting Tuesday, May 15, 2012 Page 4 Councilman Taylor stated he is comfortable passing this motion without restrictions as to the times, colored cups or bracelets. This is a business prerogative to serve alcohol at this location. He believes the risks are very low in as much as the chance of minors getting alcohol because of the guidelines they would follow. Mayor Notte doesn’t have a problem with them serving alcohol in the theatre, as this is something they would have to control. He stated there is a lot of controversy now because this is something new. The company has agreed to safeguards as it relates to hours of operation, bracelets and different colored cups. Councilwoman Schmidt stated she couldn’t support the motion as it stands without the restrictions on hours of operation, different colored cups and bracelets. Moved by Schmidt, seconded by Notte, to lay on the table the motion that is currently on the floor. Yes: All. The motion carried. Moved by Schmidt, seconded by Notte, RESOLVED, to approve the Agreement Regarding Liquor License Request and Agreement Regarding Entertainment Permit Request between the City of Sterling Heights and American Multi-Cinema, Inc. and authorize the Mayor and City Clerk to sign the Agreements on behalf of the City. Councilwoman Schmidt requested Mr. Bahorski explain the agreements. Mr. Bahorski stated the objective is to give the City accountability rights as to three conditions. He pointed out in one of the City guidelines, the Council can object to the renewal if there is a violation of conditions presented by the City and licensee. The three conditions are: Hours of operation – Serving of alcoholic beverages shall be between 4:00 p.m. and fifteen minutes after the commencement of the last movie being exhibited daily; provided, however, that in no event shall service occur after 2:00 a.m. Containers – Alcoholic beverages shall be served in containers distinguishable from containers used for non-alcoholic beverages and identifiable in the confines of a non- illuminated auditorium as a container for alcoholic beverages. Regular City Council Meeting Tuesday, May 15, 2012 Page 5 Bracelets – Every patron being served alcoholic beverages shall be required to provide proof of legal age for lawful consumption and supplied a wrist bracelet identifiable in the confines of a non-illuminated auditorium. Mr. Bahorski pointed out the petitioner has agreed to those conditions and signed the agreements. Yes: All. The motion carried. The original motion to approve the liquor license transfer is back on the floor: Roll call vote: Yes: Taylor, Notte, Schmidt, Ziarko. No: Smith, Koski, Romano. The motion carried. 3. Mr. Mark Carufel, Purchasing/Risk Manager, made a presentation and proposed the hiring of CMS Sourcing Solutions for custodial and janitorial services in nine City buildings: City Hall, Police Department, Public Library, 41-A District Court, DPW Facility, Nature Center, Recreation Center, Fire Administration and Senior Activity Center. He stated representatives from CMS Sourcing Solutions are available for questions. Mrs. Kathleen Hotson, City employee, discussed the proposal she made at the previous City Council meeting and expressed her dissatisfaction with the handling of the hand-written note she presented to the City Clerk at the request of a Council member. She stated the note was presented as her proposal and she would like a public apology. She urged the Council to consider her proposal to keep an in-house custodial staff that could stay within the allocated budget. Mr. Harry Marchlones pointed out other areas where money could be saved and discussed the “drop program”. He stated if the police and fire department are willing to make some real adjustments on what they can live with, he would be in favor of an additional tax increase in order to maintain city services. Moved by Taylor, seconded by Notte, RESOLVED, to accept the proposal by Full Spectrum/CMS Sourcing Solutions, 29700 Harper Avenue, Suite 2, St. Clair Shores, MI 48082 for custodial and janitorial services for a two-year period, with an option to extend Regular City Council Meeting Tuesday, May 15, 2012 Page 6 the terms and conditions of the proposal for an additional two-year period upon mutual consent, and authorize the Mayor and City Clerk to sign all required documentation on behalf of the City, subject to review and approval by the City Attorney. Councilman Taylor doesn’t believe it is necessarily a good thing to be outsourcing jobs and laying people off, but he wants to say that he completely agrees with the previous speaker there are millions of dollars to be saved in certain departments but unfortunately with the way the labor unions are set up we cannot touch them. Based on communication from the City Clerk and based on information inherent to collective bargaining, he agrees that the employee’s proposal is not a viable option. He has not seen enough to make him comfortable to vote on that proposal tonight and believes it’s something the City Council should have reviewed three months ago. Mayor Notte stated the decisions they are making at this time are not easy, but it is a sign of the times. The money the City would be saving by going with an outside custodial service is hard to pass up. He stated it is not the pleasant thing to do, but the responsible thing at this time. Councilman Smith discussed the cost of labor. He stated he would vote in favor of this motion, not because he likes it, but because it is a step in the direction we have to go on a much bigger scale to quit spending money we don’t have. Councilman Romano compared the proposal by employee Kathleen Hotson to the contractor’s proposal. He discussed retiree medical and health insurance and questioned whether there was any conversation between the unions and administration to come up with different figures. He stated he is not comfortable with this proposal at this time. Councilwoman Koski questioned the number of people that would be left in this union after July 1st. She inquired whether the union made a proposal for janitorial services and if this was something they would want to present. Councilwoman Koski stated she would be more comfortable outsourcing this service if the administration would go to the union and ask them if they want to submit a proposal. Councilwoman Schmidt inquired whether the union was given an opportunity to bid on this service. Mr. Carufel explained the process they followed in obtaining requests for proposals. Regular City Council Meeting Tuesday, May 15, 2012 Page 7 Councilwoman Schmidt asked the representative from CMS if this proposal was approved this evening, how many more employees they would have to hire to cover all nine City buildings. Ms. Rosemary Dygert responded she would hire twelve employees in total, but they would not all be full time employees. She stated she would be willing to interview present City employees for a job with their company. Councilwoman Schmidt questioned the starting salary. Ms. Dygert stated $8.00 an hour, plus vacation and holiday pay. Councilwoman Schmidt questioned the City’s input as it relates to the employees working in the City’s buildings. Mr. Carufel explained the City has a right to ask them to remove someone if we are not satisfied with the employee. Councilwoman Schmidt agreed with the comments from Councilwoman Koski and stated she would like to see a counter offer from the unions. Councilwoman Ziarko questioned the turn over of part-time custodians hired by the City. Mr. Gary Schamehorn, Facilities Maintenance Manager, stated they have hired 8 part time employees who have done an excellent job. They make $8.00 an hour and clean 6 facilities. There has been no turn over of part-time employees. Councilwoman Ziarko questioned the turn over of employees working for CMS Sourcing Solutions. Ms. Dygert responded 30-33% in all 7 states they service. Councilwoman Ziarko asked Ms. Dygert if she would be willing to accept applications and interview the City’s current employees for employment if this motion passes. Ms. Dygert responded the employees would have to fall under the same rules and regulations as other applicants, but because they have the experience and familiarity with City buildings, she would more than likely hire them. Councilwoman Ziarko stated this is a very difficult decision for the City Council. She questioned the amount of lead-time Ms. Dygert’s company would need if this were not passed until June. Regular City Council Meeting Tuesday, May 15, 2012 Page 8 Ms. Dygert responded it would be a problem because they have a process to follow and would need a few weeks to become familiar with the City buildings. Roll call vote on the motion to accept the proposal by CMS Sourcing Solutions: Yes: Taylor, Notte, Smith, Ziarko, Koski, Schmidt. No: Romano. The motion carried. 4. Item D from the Consent Agenda: Moved by Schmidt, seconded by Notte, RESOLVED, to acknowledge and accept the donation of $500 to SHINE from the Sterling Hunt Club Condominium Association and authorize an increase in account 11740417-956000 (Neighborhood Services – Local Meetings) in the amount of the donation. Councilwoman Schmidt wanted to thank the Sterling Hunt Club Condominium Association on behalf of the residents that would benefit from the program. Yes: All. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Harry Marchlones – Animal Control Officer’s dedication. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL There was no report from Mr. Bahorski other than the request for executive session. Mr. Vanderpool responded to comments from residents as it relates to police and fire employee benefits and retiree health care. UNFINISHED BUSINESS There was no Unfinished Business. NEW BUSINESS 1. Councilwoman Schmidt invited residents to attend the Sterling Heights High School Band’s Spring Concert on Tuesday, May 29 at the Performing Arts Center. The reception would begin at 6:00 p.m. with the concert starting at 7:00 p.m. 2. Councilman Smith spoke in support of national defense. 3. Councilman Smith pointed out a Sterling Heights resident, Mr. Gerald LaRouche, is being nominated at the State Republican Convention at Cobo Hall this weekend. CLOSED SESSION PERMITTED UNDER ACT 267 OF 1976 Regular City Council Meeting Tuesday, May 15, 2012 Page 9 Moved by Ziarko, seconded by Schmidt, to recess to closed session to discuss labor strategy and labor negotiations with the City Attorney as an open discussion could have a detrimental financial effect on the City. Roll call vote: Yes: Ziarko, Schmidt, Notte, Smith, Taylor, Koski. Absent: Romano. The motion carried. The meeting was recessed at 9:08 p.m. ADJOURN Moved by Romano, seconded by Ziarko, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 10:11 p.m. WALTER C. BLESSED, City Clerk