City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL WEDNESDAY, AUGUST 8, 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 Councilman Smith requested that Consent Agenda Item I be removed and made Consideration Item 7. Councilman Taylor added an additional item, 3A, requesting a resolution asking for the resignation of Councilman Smith. Moved by Koski, seconded by Romano, to approve the Agenda as amended. Yes: All. The motion carried. REPORT FROM CITY MANAGER Mr. Vanderpool reported City of Sterling Heights Business Development Manager Denice A. Gerstenberg has recently been appointed to the Board of Directors of the Southeast Michigan Regional Energy Office (SEMREO), where she will serve as Vice President. The idea of establishing SEMREO started in the spring of 2007, with the Michigan Suburbs Alliance, SEMCOG and the Michigan Municipal League. In 2008 the City of Detroit and the Counties of Macomb, Oakland and Wayne showed interest and support by passing resolutions to move forward and in 2009 the Energy Office Business Plan was established. Nearly 20 cities, including the City of Sterling Heights, joined the Energy Office as founding members. The SEMREO is currently formalizing its organization as a 501c3 non-profit. Regular City Council Meeting Wednesday, August 8, 2012 Page 2 SEMREO has already assisted several member communities with their Energy Efficiency and Conservation Block Grants (EECBG), received a $3 million grant from the Michigan Public Service commission (MPSC) to develop and expand programs and successfully partnered with Michigan Saves and DELEG to win a $30 million Department of Energy grant to implement the BetterBuildings for Michigan program. To date, over 162 Sterling Heights residents have participated in this program making energy-related improvements saving between $250 and $800 annually. Mr. Vanderpool reported the Clinton River Watershed Council (CRWC) started a new volunteer-based program last week entitled Weekly Clean. The first two clean-ups (August 1 & 8) were held for two hours (10:00 am-12:00 noon) along the river in Dodge Park. This exciting new program provides the CRWC the ability to continue assisting member communities with its clean up along the river. Mr. Vanderpool reported Ford Motor Company announced an over $200 million investment has been completed at Ford Transmission facility in Sterling Heights, creating over 200 new positions. PUBLIC HEARING 1. Economic Development Manager Kasey Green presented an overview of the request by A.G. Simpson (6700) Inc./A.G. Simpson (USA) Inc./Coplas, Inc. for an Industrial Facilities Tax Exemption Certificate at 6700 18-1/2 Mile Road. She introduced representatives from the company: Lisa Bolton, Pete Mars and Jeff Szulya. Also present are members of the project team: Jim Ahee, Macomb County Planning and Economic Development and Bruce Seymour, Economic Development Corporation. Ms. Green explained the company is in the process of expansion, with a $21 million investment in the City. They expect to add 90 new full time positions and retain 51 jobs. She went on to state A.G. Simpson purchased, not leased, the former Borg-Warner site and will be making site improvements. Mr. Matt Schmidt, City Assessor, stated A.G. Simpson acquired the property known as 6700 18-1/2 Mile Road on April 30, 2012. They are requested a 50% tax abatement for new and personal property in the amount of $14.7 million at this location. He pointed out Regular City Council Meeting Wednesday, August 8, 2012 Page 3 an increase of $362,000 in City tax revenue over the recommended twelve-year tax abatement term. Mayor Notte opened the public hearing to the audience. Mr. Jeff Norgrove spoke in favor of the request, stating it is a win-win situation for the City. He thanked the company for bringing their business to our City. Mr. George Hamzik spoke in favor of the tax exemption and offered a detailed proposal (New Resident Incentive Program) to the petitioners. Mayor Notte closed the public hearing. Moved by Schmidt, Seconded by Ziarko, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by A.G. Simpson (6700) Inc./A.G. Simpson (USA) Inc./Coplas, Inc. at 6700 18 ½ Mile Road is hereby approved for a period of twelve 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. Councilwoman Schmidt inquired what other communities were being considered, as alluded to by Ms. Green. Mr. Szulya responded Ontario, as they currently have a facility there. Councilwoman Schmidt thanked this company for staying and expanding in Sterling Heights. She stated they are filling a huge vacancy and the fact that they purchased the building shows they want to remain here. Councilman Smith questioned the owners’ last names (Joe and Joe). Mr. Szulya responded Joe Leon and Joe Loparco. Councilman Smith questioned the actual income of the company. Mr. Szulya responded it is a private company and he doesn’t want to share that information. Councilwoman Ziarko thanked A.G. Simpson for investing in Sterling Heights and stated we appreciate it. The City of Sterling Heights is business-friendly and glad they decided to stay and operate in Sterling Heights. She pointed out they have met all the state and City guidelines and are not receiving any special treatment. Regular City Council Meeting Wednesday, August 8, 2012 Page 4 Mr. Szulya assured the Council and residents it is in his best interest as a member of this community to make this work as well. Mayor Notte pointed out the deplorable condition of the building when A.G. Simpson purchased it. Vote on motion to approve the certificate: Yes: Schmidt, Ziarko, Koski, Notte, Romano, Taylor. No: Smith. The motion carried. 2. Mr. Matt Schmidt, City Assessor, explained the request for a 50% tax exemption for the personal property investment of $750,000 at 6640 Sterling Drive South and stated the company qualifies for five years. This would generate $8,200 in new City tax revenue and $22,000 in total revenue over the abatement term. Mayor Notte opened the public hearing to the audience. There was no audience participation. Mayor Notte closed the public hearing. Moved by Ziarko, seconded by Schmidt, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by A.G. Simpson (USA) Inc./Coplas, Inc. at 6640 Sterling Drive South is hereby approved for a period of five 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. Councilwoman Ziarko thanked the company for being in Sterling Heights. Councilman Smith questioned the history of the company. Ms. Lisa Bolton, General Counsel for A.G. Simpson, discussed the reorganization under Chapter 11 in 2002 and stated the company continued to exist. Councilman Smith continued to question the petitioners about the profits of the company and pointed out the phasing out of the personal property taxes. Moved by Ziarko, seconded by Schmidt, to call the question. Yes: All. The motion carried. Vote on motion to approve the certificate: Yes: Ziarko, Schmidt, Koski, Notte, Romano, Taylor. Regular City Council Meeting Wednesday, August 8, 2012 Page 5 No: Smith. The motion carried. 3. Mr. Matt Schmidt, City Assessor, explained the request for a 50% tax abatement for personal property investment of $250,000 and $1,000,000 at 6690 Sterling Drive North and 6710 Sterling Drive North, respectively. He stated they qualify for eight years, but state statute does not allow a term longer than the lease, so they would only qualify for four years. This includes the creation of eight jobs and an increase of $11,500 in new City tax revenue over the recommended four-year term. Mayor Notte opened the public hearing to the audience. There was no audience participation. Mayor Notte closed the public hearing. Moved by Ziarko, seconded by Schmidt, RESOLVED, that the application by A.G. Simpson (USA) Inc./Coplas, Inc. for Industrial Facilities Tax Exemption Certificates at 6690 Sterling Drive North and 6710 Sterling Drive North are hereby approved for a period of four 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. Yes: Ziarko, Schmidt, Koski, Notte, Romano, Taylor. No: Smith. The motion carried. 3A. Councilman Taylor drafted and read a resolution into the record: The City of Sterling Heights has worked diligently over the course of the past 45 years to build a community of inclusiveness and culture of acceptance. The City acknowledges that the first amendment right to freedom of speech is a cherished and important principle that must be vigorously protected to insure the continued strength of our democracy and the democratic process. The City also understands that in order to foster the best possible representative democracy for its residents, members of City Council must conduct themselves within certain ethical guidelines. These ethical guidelines have been codified by the City as the Council Rules and Ethics. The Council Rules and Ethics state that public officials must conduct themselves according to the highest principles of integrity and in the manner worthy of respect, trust and support. The public officials should conduct their personal Regular City Council Meeting Wednesday, August 8, 2012 Page 6 lives so as to reveal character traits, attitudes and judgments that are worthy of honor, respect and demonstrate fitness for public office and should avoid engaging in conduct which is likely to bring discredit on themselves and the governmental bodies in which they serve. The Sterling Heights City Council is a self-governing body that must from time to time publicly disavow the actions of one or more of its members and demand that its members conduct themselves within the strict guidelines of the Council Rules and Ethics and when public trust and confidence in the City and its institutions are compromised by a member’s actions, the Council must take the extraordinary action of requesting that member’s resignation. Councilman Paul Smith has violated the Council Rules and Ethics by failing to conduct himself with integrity. Mr. Smith has engaged in conduct unbefitting a public official. He has failed to conduct his personal life so as to reveal character traits, attitudes and judgments that are worthy of honor and respect and he has failed to demonstrate fitness for public office by engaging in conduct which is likely to bring discredit on himself and the Sterling Heights City Council. Specifically, Mr. Smith has violated the Council Rules and Ethics by refusing to repudiate his actions and comments while appearing at a rally holding multiple signs depicting graphic, vial and disturbing images of sadism and violence against public officials, specifically, but not limited to: 1. A depiction of President Barack Obama beheaded with a stake through his head. 2. A depiction of the former Governor of the State of Michigan beheaded and hanging from a noose. 3. A depiction of a prominent member of Congress with bullet holes through her face. 4. Racial and homophobic slurs. 5. Other images, descriptions and messages that are shocking and offensive to the residents of the City. Based on Mr. Smith’s clear and unambiguous violation of the Council Rules and Ethics, the City has no confidence in Mr. Smith’s ability to continue to serve the interest of its residents and in his capacity as a member of the Sterling Heights City Council. Regular City Council Meeting Wednesday, August 8, 2012 Page 7 Now, therefore, BE IT RESOLVED, that the City hereby urges Councilman Paul Smith to immediate resign from his position as a Sterling Heights City Council member and forfeit all rights and titles included therewith. In the event that Mr. Smith should refuse to resign his office, the City hereby urges Mr. Smith to immediately and publicly repudiate the comments, images and depictions contained on the signs he held at that rally as described above. Further, in the event that Mr. Smith should refuse to resign his office, the City hereby urges Mr. Smith to immediately cease and desist from any further activity that is inconsistent with the Council Rules and Ethics and conduct himself in a manner that is befitting a public official. Mayor Notte reminded residents of the Council governing rules and time limits. The following persons spoke at this time: Ms. Linda Colmer discussed the deplorable signs held up by Councilman Smith at the rally and stated he is not the person she wants representing her or the City she lives in. Mr. Aaron Filipski stated the bigoted statements are more than enough to request a resignation. He discussed the campaign literature that failed to show his sentiments and stated he would fight for his unseating. Mr. Mike Lombardi discussed the disturbing signs and stated he would support a recall effort. Ms. Jennifer George-Consiglio thanked all the people that had courage enough to speak on this issue. She stated the City of Sterling Heights is a diversified community and she likes it that way. She hopes on behalf of all the residents that Mr. Smith resigns. Mr. Jeff Norgrove stated Councilman Smith has no respect for his position or the City of Sterling Heights. He urges him to resign. Mr. Gregory Thomas discussed the video presented by Channel 4 and Mr. Smith’s cowardly response to Hank Winchester by asking where this came from. He believes Councilman Smith cannot continue to effectively represent the citizens of Regular City Council Meeting Wednesday, August 8, 2012 Page 8 this City and requests that he resigns from his position in the best interest of the City as a whole. Mr. Charles Jefferson criticized the residents for not doing their homework on the candidates and urged Mr. Smith not to resign tonight. He urged the voters to take a more serious look when they vote at the next election. Mr. Geoff Gariepy believes Mr. Smith should resign. He pointed out recent actions that have made it difficult for other council members to work with him and his opposition to tax abatements that are the lifeblood of this City. He questioned how Mr. Smith plans to move forward from here, how he would get any of the other council members to agree with him and how he would get any motions approved. Mr. Gariepy urged Councilman Smith to resign. Mrs. Paul Smith criticized the City Council and residents for their behavior toward her husband. She defended his character and experience he brings to the City Council. She questioned how he could be called a racist when he believes in America and freedom of speech. She asked the City Council to think about what they are doing. Mr. Don Wisewski discussed Mr. Smith’s actions at a polling district, where he harassed election workers. Mr. G. J. LaRouche is a newly elected precinct delegate from the 19th precinct and defended Councilman Smith. He stated Mr. Smith would never do anybody any harm or wish anyone any harm. Mr. LaRouche discussed a comment made by Councilwoman Koski about a year ago when he was collecting signatures for Joe Judnick. He questioned why the City Council would force Councilman Smith to resign, but not take any action against Councilwoman Koski. Mr. Kurt Bryling questioned Councilman Smith’s action on the City Council and criticized him for not wanting to work together with the other City Council members. He asked him to tell the people that he doesn’t believe in those racial things. Moved by Taylor, seconded by Notte, RESOLVED, to adopt the resolution requesting that Councilman Smith resign from the Sterling Heights City Council. Regular City Council Meeting Wednesday, August 8, 2012 Page 9 Councilman Taylor pointed out this is not a criminal prosecution and a person has the right to freedom of speech, but does not have the right to hold public office. You do not have the right to take that public trust and then destroy it. He stated Councilman Smith’s comments call into question his fitness for office. He addressed comments made by Mrs. Smith and pointed out how he began his term on City Council. He stated it is important to work with your colleagues and you have to build bridges not burn bridges. Councilman Taylor has asked Councilman Smith on numerous occasions to stop harassing the business community, the residents, the City administration and the City employees. He stated the last straw was this video and Mr. Smith must not understand how heinous this is. He finds Councilman Smith to be totally unfit for public office. Councilman Smith stated he doesn’t need to defend himself. He believes his actions show a need for open discussion on issues. He discussed the rally in 2009, stating it was three years and several months ago so someone has been sitting on this video for a long time. He inquired how he has discredited the council by his actions before he was on the City Council. Councilman Smith questioned whether the City Council has the authority to outright vote him out and eject him from the Council. Mr. Bahorski responded the Council, by this action tonight, is asking for his resignation. The City Council is not taking action to remove him from his position. There are three primary ways elected officials are removed in the State of Michigan: By the Governor through a Charter provision, Statute through a recall by the electorate and the City Charter. Councilwoman Schmidt agreed this is not about freedom of speech, this is about what was said and what was held up on signs and the words he spoke on Channel 4 yesterday while being a Councilperson. She stated as far as she is concerned, Councilman Smith does not represent the same community that she does and she urges him to resign from this board. Councilwoman Ziarko discussed her background working with the Church and running a bible school for children. She stated this past summer they worked on an anti-bullying campaign and stated it would be very hypocritical if she did not say something about this and that what has been done here is inexcusable. She agrees that she doesn’t know where Regular City Council Meeting Wednesday, August 8, 2012 Page 10 the City Council goes from here. Mr. Smith has lost the respect of the citizens and his colleagues and the respect of the employees. Councilwoman Ziarko believes Councilman Smith should step down because the City Council cannot work with him anymore. Councilwoman Koski discussed the comment made by the resident about her comment to him and pointed out he was making statements that were not true. She asked him to watch his mouth because what he was saying was not true. She also pointed out Councilwoman Ziarko was not with her at that time. Councilwoman Koski discussed the diversity in the City and stated the video was very disturbing and she could have forgiven it, but with the comments made yesterday where he reaffirmed his feelings that upset her. She disagrees with the way Councilman Smith treats petitioners in regard to tax abatements and comments he has made and his innuendoes are embarrassing. She supports the resolution before the City Council because a City Council person needs to be professional and represent the citizens in a professional manner. She also believes Councilman Smith should resign. Councilman Romano believes in freedom of speech and stated President Obama was Mr. Obama or Senator at that time. Today, Mr. Obama is President and if Mr. Smith was in military uniform and said what he said a few days ago, he would have been court marshaled for those comments and put in jail. He stated if you don’t respect the president, you should at least respect the office. Councilman Romano disagrees with the statement that it is always 6-1 and stated that is not true. He stated when a petitioner comes before a board, there has been a policy for the City Council to keep their hands off. We don’t try to influence any people on these boards. Mr. Smith has tried to influence these boards and they object to it. It is a give and take and you need four votes of the City Council if you want to get anything passed and Councilman Smith will never get that. He believes it is justifiable for him to be asked to resign and he supports the resolution. Mayor Notte supports the motion and stated Councilman Taylor did a fine job in putting the resolution together. He supports Mr. Smith’s resignation. Vote on motion to approve the resolution: Yes: Taylor, Notte, Romano, Schmidt, Ziarko, Koski. Regular City Council Meeting Wednesday, August 8, 2012 Page 11 No: Smith. The motion carried. CONSENT AGENDA 4. Mr. Salvatore Pansera of Rodeo Homes discussed Item H and his low bid. He questioned why the bid is going to the second lowest bidder. Mr. Sal Conigliaro, Public Works Director, explained the recommendation to award the bid to the second lowest bidder. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda, as amended: A. To approve the minutes of the Regular Meeting of July 17, 2012, as presented. B. To approve payment of the bills as presented: General Fund - $1,124,235.24, Water & Sewer Fund - $974,013.72, Other Funds - $1,557,510.21, Total Checks - $3,655,759.17. C. RESOLVED, to approve the request by D-M Fabrication, Inc. for a revised personal property final cost of $1,893,000 in connection with IFEC #2009-351 at 6101 18 ½ Mile Road. D. RESOLVED, to approve Traffic Control Order #96-1 temporarily suspending the prohibition against parking on the north side of Ina Drive from Maple Lane to Esper Drive. E. RESOLVED, to split the award of the bid for supplies and materials for the Department of Public Works to the vendors and at the respective unit prices specified below for a one-year period: To: Sabiston Builders Supply, Inc., 11503 E. 8 Mile Rd., Warren, MI 48089 A. Portland Cement $8.30 per bag B. Mortar $6.95 per bag C. Redi-Mix $4.20 per bag D. Expansion Strip 3”x5”x3/8” $0.35 per foot O. Manhole Brick $0.31 per brick P. Manhole Block 2’ x 6” $1.45 per block Q. Manhole Block 3’ x 6” $1.45 per block R. Manhole Block 4’ x 6” $1.45 per block Regular City Council Meeting Wednesday, August 8, 2012 Page 12 X. 4” Perforated Weeptile $0.53 per foot Y. 4” Tee $4.75 each Z. 4” Cap $3.00 each To: J.T. Express, P.O. Box 204, Imlay City, MI 48444 E. Fill Sand $5.95 per cubic yard F. Mason Sand $9.50 per ton G. 2NS Sand $8.40 per ton I. 60 x 40 Gravel $10.50 per ton L. Pea Pebble $11.49 per ton V. Clean Topsoil $9.50 per cubic yard To: Cadillac Asphalt, 2575 Haggerty Rd., Canton, MI 48188 H. 22AA RAP Gravel $9.00 per ton To: Fiore’s Crushed Concrete, 33200 Mound Rd., Sterling Hts., MI 48310 J. Fine Crushed Concrete $8.92 per ton K. Coarse Crushed Concrete $9.91 per ton To: Sullivan Corporation, 19500 Victor Parkway, Suite 350, Livonia, MI 48152 M. Athletic Marking Chalk $4.99 per bag N. Athletic Field Marking Paint $6.95 gallon CC. Red Infield Conditioner $9.75 bag To: B & W Landscape Supply, Inc., 43291 North Ave., Clinton Twp., MI 48036 S. 30A Slag Sand $13.92 per ton T. 5GBF Slag $13.92 per ton U. 22X Slag $ 7.39 per ton AA. Shredded Mulch $18.90 cubic yard To: Richmond Transport, Inc., 4020 County Line Rd., Lenox, MI 48050 W. Limestone Athletic Meal $13.00 per ton F. RESOLVED, to approve the contract between the City of Sterling Heights and Issue Media Group for media and marketing services for a one year period at a cost of $12,000 and authorize the Mayor and City Clerk sign it on behalf of the City. Regular City Council Meeting Wednesday, August 8, 2012 Page 13 G. RESOLVED, to approve the contract between the City of Sterling Heights and the Michigan Department of Transportation for the asphalt resurfacing of 19 Mile Road from Merrill Road to Van Dyke Avenue, City Project #11-223 and authorize the Mayor and City Clerk to sign it on behalf of the City. H. RESOLVED, to award the bid for the Utica and Van Dyke Corridor Improvement Project, City Project #10-206, to Caasti Contracting, 19125 W. Eight Mile Road, Detroit, MI 48219 in the amount of $170,003.55 and authorize the Mayor and City Clerk to sign the contract on behalf of the City. I. Moved to Consideration Item 7. J. RESOLVED, to adopt the resolution requesting that the Michigan Legislature and Governor move to repeal the Michigan Fireworks Safety Act: RESOLUTION This Resolution was made and adopted at a meeting of the City Council of the City of Sterling Heights, Macomb County, Michigan held at the City Center on the 8th day of August, 2012. Members Present: Koski, Romano, Notte, Schmidt, Smith, Taylor, Ziarko. Members Absent: None. The following preamble and resolution was offered by Member Koski and supported by Member Romano. A. In 2011, the State of Michigan enacted the Fireworks Safety Act, which became effective on January 1, 2012. B. The Act authorizes the retail sale of “consumer fireworks” and prohibits municipalities from regulating such sales. C. The Act authorizes the use of “consumer fireworks” for a minimum of 30 days per year, and prohibits municipalities from regulating such use during those 30 days. D. The Act has contributed to a substantial and significant decline in quality of life for the residents of the City of Sterling Heights, whose neighborhoods have this year endured additional fireworks-related noise, litter and disturbance of the peace. E. The Act failed to consider its impact on local police, fire, and community relations resources, each of which was impacted substantially by the volumes of calls and complaints relating to the sales and use of consumer fireworks. F. The extra work associated with addressing the complaints and calls, as well as the extra work associated with preparing and adopting an ordinance to address the many extraneous fireworks-related issues that municipalities are still permitted to regulate, cost the taxpayers significant sums and amounted to an unfunded mandate for which no reimbursement has been forthcoming from the State. G. In addition to creating extra work for police, fire, planning, code enforcement, and Regular City Council Meeting Wednesday, August 8, 2012 Page 14 legal officials of the City, the process established for allowing retail sales also created extensive confusion relating to registration and licensing, local and state inspections, and monitoring of temporary locations for full compliance with the Act’s sales and financial requirements. H. In its current form, the Act encourages less reputable vendors to take advantage of the confusion by establishing temporary sales locations without obtaining a State certificate to do so. I. The Act also encourages less reputable vendors to engage in unlawful sales practices because no system is in place to monitor or inspect each vendor’s operations. J. The Act also encourages fraud, because no system is in place to monitor or inspect each vendor’s sales and each vendor’s collection and remittance of the mandatory sales taxes and safety fund fees. K. The loss of local control and home rule authority caused by the Act has tied the hands of City officials, caused harm to City residents, and preempted any reasonable regulations that could protect neighborhoods, minimize blight, and ensure the public’s health, safety, and welfare. L. Beyond question, the Act has diminished the quality of life in the City of Sterling Heights and most of the communities in the State of Michigan. NOW, THEREFORE, 1. The City of Sterling Heights hereby requests that the Michigan Legislature and the Governor repeal the Fireworks Safety Act due to its many unforeseen negative consequences on municipal officials, State operations, residents, families, homes, and neighborhoods. 2. The City of Sterling Heights also urges all concerned citizens to participate in the online petition for the repeal of the Fireworks Safety Act, found at: http://www.change.org/petitions/rick-snyder-and-state-of-michigan-representatives-repeal- michigan-fireworks-law 3. The City Council directs the City Clerk to forward this Resolution to the Governor of the State of Michigan, to the City’s State Representatives, and to the City’s State Senator. CERTIFICATION I, Walter C. Blessed, certify that the above resolution is a true copy of the Resolution made and adopted by the City Council of the City of Sterling Heights at its regular meeting held on August 8, 2012. WALTER C. BLESSED, City Clerk Yes: All. The motion carried. CONSIDERATION 5. Moved by Koski, seconded by Romano, RESOLVED, that the request for a Dance- Entertainment Permit from 7 Star Inc., located at 2209 Eighteen Mile Road, Sterling Heights, MI 48314, Macomb County, be considered for approval. Regular City Council Meeting Wednesday, August 8, 2012 Page 15 Yes: All. The motion carried. 6. Mr. Vanderpool made a presentation in regard to a Memorandum of Understanding between the City of Sterling Heights and UAW Unit 41 of Local 412 – Supervisory Employees. He explained on April 4, 2012, City Council approved a new collective bargaining agreement with the UAW Supervisors for the period of July 1, 2012 to June 30, 2014. The cumulative concessions equated to a 17.5% reduction in wages and benefits from the expiring collective bargaining agreement and an 11% actual reduction over two years. As part of the new agreement, the union agreed that new hires would be paid 20% less than the current wage rates for incumbent employees. Subsequently, the City Assessor retired. The City must now recruit for a new Michigan Master Assessing Officer (MMAO) Level 4 certified City Assessor. Based on a market survey, it may be extremely difficult for the City to secure the services of a Level 4 certified assessor for a number of reasons. First, the pool of candidates is extremely small. There are very few MMAO Level 4 certified assessors in the State of Michigan. Since many of the potential candidates are currently employed, the City must offer a very competitive salary and benefit package to attract applicants. Second, according to state law, the City of Sterling Heights must employ a Level 4 assessor to sign the City’s assessment roll. This demand for a Level 4 certified assessor combined with the limited supply further compounds the necessity for a competitive salary and benefit package. With the consent of the union, the Memorandum of Understanding has been negotiated to reinstate the old wage range for City Assessor job classification. The wage range is $86,563 to $107,321. He has attached a salary survey, which shows that the existing wage range is competitive with surrounding communities, whereas the new range is well below similar communities. Moved by Romano, seconded by Koski, RESOLVED, to approve the Memorandum of Understanding between the City of Sterling Heights and UAW Unit 41 of Local 412 – Supervisory Employees for the period of July 1, 2012 through June 30, 2014 and authorize the Mayor and City Clerk to sign it on behalf of the City. Regular City Council Meeting Wednesday, August 8, 2012 Page 16 Councilman Romano questioned how cities with no where near our population use their Level 4 assessor. Mr. Vanderpool responded the certified Level 4 assessor is only for communities over a certain population. Councilwoman Koski questioned whether there was anyone in the Assessing Office with a Level 3. Mr. Vanderpool indicated there was, but we don’t know whether or not that person is interested in becoming a Level 4 assessor. He stated the individual is welcome to apply for the position. Councilwoman Schmidt expressed her feelings that once again this is an unfunded mandate that we have to have an assessor at this level. Yes: All. The motion carried. 7. Item I from the Consent Agenda: Moved by Taylor, seconded by Romano, RESOLVED, to adopt the resolution opposing recent amendments by the Michigan Liquor Control Commission that eliminate the requirement for local legislative body and police review and recommendations regarding liquor licenses and permits within the City of Sterling Heights. Councilman Taylor explained the Michigan Liquor Control Commission recently changed its regulations taking away local control from municipalities and giving it to these appointed bureaucrats in Lansing. He urges the Michigan Liquor Control Commission and the Governor to change the legislation back to the way it was. Councilman Smith is not necessarily opposed to this resolution, but he wants some discussion on it rather than have it as an item on the Consent Agenda. Councilwoman Schmidt is in total support of sending this resolution to Lansing, stating it is one more way for the state to take away our local control and it is our responsibility to keep our community safe. RESOLUTION This Resolution was made and adopted at a meeting of the City Council of the City of Sterling Heights, Macomb County, Michigan held at the City Center on the 8th day of August, 2012. Members Present: Taylor, Romano, Koski, Notte, Schmidt, Smith, Ziarko. Members Absent: None. Regular City Council Meeting Wednesday, August 8, 2012 Page 17 The following preamble and resolution was offered by Member Taylor and supported by Member Romano. A. The Michigan Liquor Control Code of 1998 establishes the laws in Michigan governing the sales and consumption of liquor and alcoholic beverages. B. Michigan’s Administrative Code includes regulations which further regulate the sales and use of liquor and alcoholic beverages. C. For many years, the laws and regulations governing liquor and alcohol have provided deference to local communities desiring to have input regarding the individuals and businesses who apply for liquor licenses, license transfers, and related permits. D. More recently, however, the State and the Liquor Control Commission have adopted amendments which have the effect of eroding local control and local input regarding these matters. E. The Liquor Control Commission has itemized 78 different types of transactions for on-premises liquor licensees that require LCC approval. F. Of those 78 transactions, local legislative body approval is only required for 24 of them. G. Although local legislative body approval is still required for new liquor license applicants and most permit applications, the LCC is now handling nearly every other transaction without requiring local input. H. Effective July 1, 2012, the LCC announced new procedures that no longer require local approval for transfers of ownership, transfers of interest, or transfers of location for existing licenses. I. While the LCC will still consider local opinions regarding most liquor license transactions, it is unclear what, if any, weight will be given to the local legislative body input. J. Further, the laws and regulations do not provide any means for a local community to mandate that all LCC transaction requests first be reviewed by the local police agency and local legislative body. K. Therefore, the potential exists for applicants to bypass the City and secure transaction approval directly from the LCC in a streamlined process that may not even require the City to be provided with sufficient advance notice to review the matter and provide input. L. The State and the LCC do not have any local connection to the Sterling Heights community and therefore, without local recommendations, cannot assess the appropriateness of any liquor licensing transactions that will affect the community. M. The loss of local control and involvement in liquor licensing transactions increases the likelihood that the City and its residents are denied fair and meaningful input into a process that will greatly impact the local community. NOW, THEREFORE, 1. The City of Sterling Heights hereby urges the Michigan Legislature to amend the Michigan Liquor Control Code, and urges the Governor to sign such amendments, to mandate Regular City Council Meeting Wednesday, August 8, 2012 Page 18 local legislative and local police involvement, participation, and review of liquor licensing transactions prior to any decision on such transactions by the Liquor Control Commission. 2. The City of Sterling Heights also urges the Department of Licensing and Regulatory Affairs and/or the Liquor Control Commission to enact Administrative Rules to implement the process by which local legislative bodies and local police agencies shall be involved in all liquor licensing transactions, including but not limited to a mandate that all applicants first seek local approval if required by the local governmental entity. 3. The City Council directs the City Clerk to forward this Resolution to the Governor of the State of Michigan, to the City’s State Representatives, to the City’s State Senator, and to the Chairman of the Michigan Liquor Control Commission. CERTIFICATION I, Walter C. Blessed, certify that the above resolution is a true copy of the Resolution made and adopted by the City Council of the City of Sterling Heights at its regular meeting held on August 8, 2012. WALTER C. BLESSED, City Clerk Yes: All. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Joseph Damm – Charity for the Philippine community. Mr. Ralph Dallo – Permit for Festivals at his Church. Mr. Jeff Norgrove – Sterlingfest, National Night Out. Mr. Henry Yanez, City employee and proud member of the Fire Department - Candidate for State House District 25. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL There were no reports from Mr. Bahorski or Mr. Vanderpool at this time. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS 1. Councilwoman Schmidt discussed the Clinton River Watershed cleanup program and invited interested residents to participate and get involved. 2. Councilwoman Ziarko inquired when the City Council would be voting on the Council Governing Body Rules of Procedure. Mr. Bahorski responded August 21st is a proposed amendment from Councilman Taylor regarding appointments to five or six designated boards. Regular City Council Meeting Wednesday, August 8, 2012 Page 19 Councilwoman Ziarko inquired whether something could be added that would restrict council members from contacting commissioners, either by phone or email, regarding decisions they are going to be making. Also, when we have a City event, whether it be Sterlingfest, the Ethnic Exchange, Cultural Exchange or Memorial Day that the only people introduced are elected officials and not candidates. 3. Councilman Romano discussed the need to revisit the speed limits on Metropolitan Parkway and Schoenherr due to the recent double rollover. 4. Councilwoman Koski questioned the status of the Explorer Group’s website. Mr. Vanderpool responded we are moving forward in designing the website and addressing other ideas presented. He will provide another update to the City Council. 5. Councilwoman Koski questioned the timing of the lights at Dodge Park and Metropolitan Parkway and the accident history. Mr. Vanderpool responded he would contact the County tomorrow and see when they are going to review this. ADJOURN Moved by Ziarko, seconded by Schmidt, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 9:55 p.m. WALTER C. BLESSED, City Clerk