City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, SEPTEMBER 4, 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 Items C, D and E be moved to Consideration Items 5, 6 and 7 respectively. Moved by Koski, seconded by Romano, to approve the Agenda as amended. Yes: All. The motion carried. REPORT FROM CITY MANAGER Mr. Vanderpool reported on the three economic metrics he has been reporting on for the last few years: the Foreclosure rates, unemployment rates and home values. He stated in regard to the Foreclosures, we started graphing the data in 2008. The 2012 Macomb County average foreclosures per 1,000 residential parcels declined by 20.8% (from 4.8 to 3.8) from 2011 to 2012 so far. The City’s rate declined by 35.7% (from 4.2 to 2.7) between 2011 and 2012. Sterling Heights also dropped from a tie for the 11th lowest foreclosure rate to the 15th lowest rate in the county. The City’s current rate (2.7 per 1,000 parcels) is 28.9% below the county average (3.8 per 1,000 parcels). As it relates to home values, there is some good news and after 5 years and 7 months of straight declines resulting in unprecedented revenue losses, home values are beginning to track upward. As projected in the multi-year plan, we would see an overall decline in property values for this assessment year of about 3-1/2 %. The reason for that is Regular City Council Meeting Tuesday, September 4, 2012 Page 2 commercial and industrial properties are still going down so we would not see any effects of this assessment year in terms of revenue until fiscal year 2014. The last metric is our unemployment rate and our most recent monthly rate was 7.7%, which is well below the county, state and national rates. The City will need to continue implementing the cost containment measures and recovery efforts. Mr. Vanderpool updated the Council and residents on the Animal Vaccination Clinic & Spay Day scheduled for Saturday, September 15, 2012 from 10 am to 2 pm in Dodge Park. He pointed out three types of vaccinations would be available: Rabies, Distemper and Bordetella. Pet owners can have their dogs and cats vaccinated for $10 per shot; micro-chipping and heartworm tests would be available for $20 each. Pet owners can have their dog or cat spayed or neutered in All About Animals Rescue’s state-of-the-art mobile surgery van. Licensed veterinarians perform surgeries and other vaccines and preventative care would be available at the time of the pet’s surgery. The cost of the spay/neuter procedure is $40 for cats and $80 for dogs. PRESENTATION Sterling Heights Interim Fire Chief Chris Martin explained the lifesaving actions of three civilians who assisted a man when he collapsed on the Dodge Park Trail system. The resident was not breathing and had no pulse. Tim O’Connor, Carol O’Connor and David Charlton immediately administered CPR and called 911. There is no doubt that the timely and appropriate lifesaving actions of these three residents played a key role in the full recovery of Bill Van Vianen. Interim Fire Chief Martin, with the assistance of the City Council, presented the three recipients with the Sterling Heights Fire Department’s Exceptional Civilian Service Awards for extraordinary conduct. ORDINANCE ADOPTION 1. Mr. Donald Mende, City Planner, made a presentation regarding the regulation of garage sales. He explained that with the success of the public education campaign and directed enforcement over the course of the past year, City Council may consider postponing these amendments indefinitely rather than adopting the new ordinances. Procedures are in place to deal with those instances of abuse without impinging on the legitimate garage Regular City Council Meeting Tuesday, September 4, 2012 Page 3 sale operators. If, in the future, City Council determines the issue needs to be reevaluated, City Council has an excellent draft ordinance to work from. Mr. Geoff Gariepy spoke against the regulation of garage sales and urged the Council to postpone it indefinitely or cancel it all together. Mr. Andrew Pulford hopes the City Council votes to postpone the item indefinitely. Moved by Romano, seconded by Ziarko, RESOLVED, to postpone indefinitely adoption of the ordinances adding Chapter 22A to the City Code and amending Articles 3, 4, 27, 28 and 31 of the Zoning Ordinance No. 278 to provide for the regulation of garage sales. Councilman Romano explained the original reason for this ordinance was because of complaints from residents whose neighbors have been conducting continuous garage sales or selling items that are not typical used household items. He explained the new regulations were very restrictive. Councilman Romano assured the residents they could still advertise on the City channel at no charge and we would still allow garage sales. Yes: All. The motion carried. CONSENT AGENDA 2. Mr. Harry Marchlones questioned Consent Agenda Item H. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda, as amended: A. To approve the minutes of the Regular Meeting of August 21, 2012, as presented. B. To approve payment of the bills as presented: General Fund - $498,794.72, Water & Sewer Fund - $501,254.08, Other Funds - $839,028.98, Total Checks - $1,839,077.78. C. Moved to Consideration Item 5. D. Moved to Consideration Item 6. E. Moved to Consideration Item 7. F. RESOLVED, to award the bid for the 2012 Sidewalk Gap Completion Program, City Project #11-217, to Distinguished Development, 7750 23 Mile Road, Shelby Township, MI 48316, in the amount of $68,772.50 and authorize the Mayor and City Clerk to sign the contract on behalf of the City; and, Regular City Council Meeting Tuesday, September 4, 2012 Page 4 To adopt the resolution as required by §48-6(E) of the City Code for the 2012 Sidewalk Gap Completion Program for those properties included in the project area. RESOLUTION Resolution made and adopted at a regular meeting of the Council of the City of Sterling Heights, Macomb County, Michigan, held at the City Offices on the 4th day of September, 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: WHEREAS, the City of Sterling Heights desires to provide for the construction, reconstruction, or repair of public sidewalks at those locations identified on the attached "Exhibit A" in accordance with the current City of Sterling Heights "Sidewalk Policy" if such improvements are not completed by the property owners within the time frame specified by ordinance or otherwise established by resolution of the City Council; and, WHEREAS, §48.6 – (E) of the "Street, Sidewalks, and Rights-of-Way Ordinance" allows the City to require such improvements and invoice the cost of such improvements to the property owners if such improvements are not completed by the property owners within the time frame specified by ordinance or otherwise established by resolution of the City Council. NOW, THEREFORE, be it resolved that: 1. The Council of the City of Sterling Heights resolves to require the property owner(s) of the lot and premises identified on "Exhibit A" to construct, reconstruct, or repair sidewalks adjacent to or abutting upon such lot and premises. 2. City Council directs the City Engineer to cause a notice of same to be sent by first class mail to the property owner(s) of the lot and premises identified on "Exhibit A," as determined from the tax rolls of the City, requiring such property owner(s) to construct, reconstruct or repair in accordance with City specifications, such sidewalk as is required by this resolution, within thirty (30) days of the date of the notice. 3. The notice shall also state that if the property owner(s) shall fail to comply with such order within the specified time, then the City shall construct, reconstruct, or repair such sidewalk and charge the expense thereof to the lot and premises and the property owner(s) thereof, Regular City Council Meeting Tuesday, September 4, 2012 Page 5 together with an administrative charge not to exceed the amount established by ordinance to cover administrative, bidding, engineering, and collection expenses. AYES: Koski, Romano, Notte, Schmidt, Smith, Taylor, Ziarko. NAYS: None. ABSTAINED: None. ABSENT: None. Resolution declared and adopted. CERTIFICATION I hereby certify that the above Resolution is a true and correct copy of a resolution entered in the Minutes of the Sterling Heights City Council, held at a meeting of said Council on the 4th day of September, 2012. WALTER C. BLESSED, City Clerk G. RESOLVED, to approve final payment to S&A Concrete Construction, Inc., 36175 Groesbeck, Clinton Township, MI 48035 in the amount of $5,501.42, plus interest on retainage, for the 2011 Sidewalk Replacement Program, City Project #10-214. H. RESOLVED, to award the bid for the official City newspaper for the publication of legal notices and advertisements to Advisor & Source Newspapers, 48075 Van Dyke, Shelby Township, MI 48317 for a one-year period based on the following unit prices:  One full page at $912.00  Column inch at $7.60  Classified help wanted per line at $4.82 I. RESOLVED, to receive the lawsuit, Donaldson vs. City of Sterling Heights, et al; Macomb County Circuit Court Case No. 12-3711-NI. J. RESOLVED, to approve the Uniform Video Service Local Franchise Agreement between Comcast of Sterling Heights, Inc., d/b/a Comcast and the City of Sterling Heights, as amended, to require payment of 1% Public, Education and Government support and a 5% franchise fee effective June 15, 2012 for a term of 10 years and authorize the Mayor to sign it on behalf of the City. Yes: All. The motion carried. Regular City Council Meeting Tuesday, September 4, 2012 Page 6 CONSIDERATION 3. Mr. Randy Crowell, a member of the Kiwanis organization that utilizes Cada’s Poker Room, urged the City Council to approve this request because the liquor license for this establishment would help to maintain the facility and keep it going. He stated Cada’s is trying hard with their restaurant and the liquor sales would keep it a viable place where they could do their charity poker activities. Mr. Charles Jefferson inquired how this charitable organization differed from the bingo hall charitable organization on Schoenherr Road. He inquired whether they would strong-arm the City and leave if they did not get their liquor license. He also inquired the hours of operation. Mr. Frank Palazzolo, attorney for the petitioner, responded to Mr. Jefferson’s questions. Moved by Schmidt, seconded by Ziarko, RESOLVED, that the request with the Michigan Liquor Control Commission to transfer ownership of escrowed 2011 Class C licensed business located at 44935 Hayes, Sterling Heights, MI 48313, Macomb County, from G&G Restaurants, Inc. to Fifth Third Bank (an Ohio Public Corporation) with license to be held in escrow (Step 1) and from Fifth Third Bank (an Ohio Public Corporation) to ACPB, LLC (Step 2) is recommended for approval. Councilwoman Schmidt inquired whether alcohol is being served in this establishment and Mr. Palazzolo indicated absolutely. Councilwoman Schmidt stated the two owners, Mr. Cada and Mr. Bernhardt both have bar and restaurant experience. She asked them to elaborate on their experience. Mr. Bernhardt stated he has about four years experience in charitable gaming with a previous location in Clinton Township. Councilwoman Schmidt inquired whether alcohol was served there and Mr. Bernhardt responded yes, but it was a different setup because he was just leasing space there and the location had their liquor license. Mr. Cada stated he ran several party stores and restaurants and has 10 years of management experience. Councilwoman Schmidt inquired whether they plan on being on site. Mr. Cada responded occasionally and Mr. Bernhardt would be there 5 days a week. Regular City Council Meeting Tuesday, September 4, 2012 Page 7 Councilwoman Schmidt inquired of Sgt. Belmonte whether there have been any liquor license violations and he indicated there were no problems or violations. Councilwoman Schmidt sees a difference between this request and the other organization that was before City Council and stated this petitioner has provided an extensive restaurant menu and the other organization had sandwiches and a cooler. She inquired the percentage anticipated for food sales. Mr. Bernhardt responded food vs. liquor is about 50/50. Councilwoman Schmidt stated she has no issue with this request since this is a business that has been having those events for quite some time now with no problems. Councilwoman Ziarko questioned how successful they have been in running this establishment and whether they are booked continuously, if it is a sports bar as well and whether someone can just come in there for dinner and a beer. Mr. Bernhardt related some of the upcoming events at this location, stated they are a sports restaurant and bar with gaming and yes someone could come in for dinner and a beer. Councilman Smith questioned the City’s authority to approve or disapprove liquor licenses. Mr. Bahorski responded the City never had the power to approve or disapprove liquor licenses. Recently a change was made in how the Michigan Liquor Control Commission interpreted their own rules. Previously this Council would give a recommendation for approval or disapproval. The Council would now give an opinion and he doesn’t know at this time how much weight would be given to the opinion. He pointed out if the City Council does not give their opinion, it is quite possible the license would be approved. Councilman Smith stated whether the City or the MLCC approves or disapproves the liquor license, it doesn’t mean the establishment could not continue with their poker room with day-to-day licensing as they have now. Mr. Palazzolo pointed out the Michigan Liquor Control Commission doesn’t need the City Council’s traditional recommendation to transfer a liquor license. They need the City Council’s recommendation to approve the entertainment permit. Regular City Council Meeting Tuesday, September 4, 2012 Page 8 Councilman Smith questioned whether an entertainment permit is different from a gaming license and the percentage of food and liquor combined vs. gambling. Mr. Palazzolo stated they have not had any liquor sales yet because they are not licensed. Based upon other similar locations he has represented, it is pretty balanced out. Councilman Smith questioned the real revenue and how much goes to the winners of the game. Mr. Cada responded 80% of the money taken in for the tournaments is given back to the players; 20% is split between the charities and the establishment. Councilman Smith stated he is opposed to this request. Councilwoman Koski questioned what the City’s opinion would be to the Michigan Liquor Control Commission in regard to outdoor service. Mr. Bahorski stated they are not aware that the entertainment permit had been filed with the state and that they were waiting for approval. As far as outdoor sales that doesn’t need an opinion from City Council. Mr. Blessed added there was some discussion back and forth regarding an entertainment permit and the way it was left was the petitioner felt they did not need an entertainment permit because the closed circuit television events contemplated would not require that. Mr. Palazzolo stated he believes our ordinance, because of the form they were given in regard to entertainment, requires them to go before the City Council for closed circuit television. He stated in his opinion, because of the closed circuit television, they would need this entertainment permit to put this in their sports bar. Councilwoman Koski inquired whether that was what the City Council was going to do. Mr. Bahorski responded they could come up with a resolution if that is the City Council’s desire. It appears there was a miscommunication on the type of entertainment. Mayor Notte inquired Mr. Bahorski’s recommendation. Mr. Bahorski responded the entertainment permit would be a separate permit and would need a separate motion to recommend that the entertainment permit be considered for approval. Regular City Council Meeting Tuesday, September 4, 2012 Page 9 Councilman Romano stated he is very comfortable with giving them approval for the charitable gaming license. He is not in favor of giving them an entertainment license at this time without further information. Councilman Taylor inquired what would typically happen if a petitioner wanted an entertainment permit of this sort and if it would be included as part of this approval. He inquired what the petitioners were lacking at this time. Mr. Bahorski responded the City Council could take action on an entertainment permit separately. We were not aware that they had an entertainment permit pending. He stated they would have to verify it and then get the standard motion to recommend it. Councilman Taylor inquired whether it is the petitioner’s understanding that if the City Council gives an opinion to grant approval without the entertainment permit they have not gotten anything tonight and the liquor license transfer cannot go forward. Mr. Palazzolo responded they would have to send a letter to the Michigan Liquor Control Commission and withdraw their entertainment permit. Councilman Taylor inquired what the petitioner intends to do with an entertainment permit. Mr. Palazzolo stated the Council’s ordinance and the Liquor Control Commission’s rule requires them to have an entertainment permit for closed circuit television. Councilman Taylor questioned what closed circuit television would be. Mr. Palazzolo responded it is his opinion when you buy from a cable company that is closed circuit television. Councilman Taylor inquired whether the petitioner is comfortable going through with the withdrawal of the entertainment permit and coming back at the next meeting. Mr. Palazzolo stated yes he is comfortable doing that. Vote on the transfer request without an entertainment permit: Yes: Schmidt, Ziarko, Koski, Notte, Romano, Taylor. No: Smith. The motion carried. 4. Moved by Ziarko, seconded by Schmidt, RESOLVED, to appoint Andrew Pulford to the Citizens Advisory/Community Development Block Grant Committee to a term ending Regular City Council Meeting Tuesday, September 4, 2012 Page 10 06/30/13, subject to the appointee meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Moved by Romano, seconded by Schmidt, RESOLVED, to postpone the appointment to the Cultural Commission for a period of two weeks. Yes: All. The motion carried. 5. Item C from the Consent Agenda: Moved by Ziarko, seconded by Notte, RESOLVED, to designate Mark D. Vanderpool as the voting delegate of the City of Sterling Heights at the Annual Convention of the Michigan Municipal League to be held October 3, 2012. Councilwoman Ziarko stated Mr. Vanderpool is the only one that is going. She explained the many classes offered and the importance of going to the conventions. She wants Mr. Vanderpool to be the voting delegate on the Council’s behalf. Councilman Smith is not necessarily against this, but he is against having this on the consent agenda without open discussion. He requested Mr. Vanderpool mention the place, length of time, the days of the week, what days on the job would be lost and the total cost. Mr. Vanderpool responded the MML convention is on Mackinac Island this year. It takes place from Tuesday to Friday and he would be driving up on Wednesday morning. The total cost he is not sure about, but the registration fee is about $400 for the early bird special. In terms of lodging, he is staying in a place that costs $95 a night. Councilman Smith inquired whether the total cost would be under $1200. He stated he is not comfortable with the power we are endowing on the City Manager and inquired what he would be voting on. Mr. Vanderpool responded at the Michigan Municipal League the main point of voting is the Board of Trustee meeting that occurs on Wednesday. At that meeting, delegates vote on the core legislative principals that are set forth for the next year and delegates have the opportunity to comment on them, suggest revisions or updates. He pointed out anyone could go on the MML website and look at the core legislative principals. He encouraged the community to look at the 20 core legislative principals and submit questions they Regular City Council Meeting Tuesday, September 4, 2012 Page 11 might have. Another thing would be to vote on the new trustees for the upcoming year. He stated there are 18 board members and 6 of them have expired terms this year. He stated he would be happy to email the list of nominees before he casts his vote. Mr. Vanderpool pointed out the Michigan Municipal League does an excellent job representing the City’s interest and they have been a great partner for the City over the years and he is honored to represent the City at the convention this year. Councilwoman Schmidt stated Mr. Vanderpool is still available to the City via his blackberry and he is still conducting City business. Yes: All. The motion carried. 6. Item D from the Consent Agenda: Moved by Ziarko, seconded by Schmidt, RESOLVED, to set a public hearing on September 18, 2012 at 7:30 p.m. regarding the application by US Farathane Corporation for an Industrial Facilities Tax Exemption Certificate at 38000 Mound Road. Mr. Harry Marchlones wanted to speak on Agenda Item 5. He stated it is his opinion that four people run the City: Mr. Vanderpool, the City Clerk, Financial Director and the Tax Assessor. He feels comfortable with the other three people that would be handling the City in Mr. Vanderpool’s absence. Councilwoman Ziarko pointed out the City Council is only setting a date and any discussion should be only to offer a different date. Councilman Smith began to discuss tax abatements. Mr. Gariepy made a point of order that this item is only to set a public hearing date and not discuss tax abatements. Vote on motion: Yes: Ziarko, Schmidt, Taylor, Koski, Notte, Romano. No: Smith. The motion carried. 7. Item E from the Consent Agenda: Moved by Ziarko, seconded by Schmidt, RESOLVED, to set a public hearing on September 18, 2012 at 7:30 p.m. regarding the application by US Farathane Corporation for an Industrial Facilities Tax Exemption Certificate at 42155 Merrill Road. Yes: Ziarko, Schmidt, Taylor, Koski, Notte, Romano. Regular City Council Meeting Tuesday, September 4, 2012 Page 12 No: Smith. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Jeffrey Norgrove – Status of his recommendations for an increase in ticket prices for fines and violations and an increase of $5.00 for permit fees; Need for a Police and Fire Millage on the ballot. Mr. Joey Rockwell – Adequate funding for Police and Fire departments. Mr. Harry Marchlones – Apology to Police department for comment about overkill. Mr. George Hamcik – Police and Fire millage, General Operating millage; Petition for street name change/correction of Mary Grove Drive to Marygrove, all one word. Mr. Charles Jefferson – Traffic tie-ups with Van Dyke Road improvements; Possibility of ceramic statues around the City; Councilman Taylor’s comments in regard to Councilman Smith. Mr. Vanderpool responded to comments from residents. 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 discussed at this time. NEW BUSINESS 1. Councilman Romano stated to Mr. Hamzik it seems simple enough in theory to change a street name, but what happens to the maps, bressers, city routes, etc. He questioned whether this would be simply a sign change. 2. Councilman Romano stated to Mr. Jefferson the City does display various arts from the DIA. 3. Councilman Romano discussed the Council rules that prohibit a person from making personal attacks and stated he would be calling people to order on that from now on. 4. Councilman Taylor echoed the comments of Councilman Romano as it relates to personal attacks and spoke in favor of Mr. Judnick. 5. Councilwoman Schmidt stated she would make a call to the City of Birmingham and see how they get their statues. Regular City Council Meeting Tuesday, September 4, 2012 Page 13 6. Councilwoman Schmidt sent out kudos to our Animal Control Officer Jeff Randazzo because he does a lot of work behind the scenes. 7. Councilman Smith stated he has never blamed the City for unemployment and foreclosures when they went down and we cannot take credit when they go up or down. 8. Councilman Smith stated in regard to the ceramic animals, those were bought by individual businesses for advertising and it is the matter of having a business that wants to do this. 9. Councilman Smith discussed the financial condition of the City and stated employees have to realize they are employees of a stable employer that doesn’t want to lay people off. If the employees want to retain their job, they will have to work for a fee the City can afford to pay. He hopes we can retain as many employees as we can or hire some back. 10. Councilman Smith made a motion that Mary Grove Street be renamed properly as one word, with no space. His motion lost for lack of support. ADJOURN Moved by Ziarko, seconded by Romano, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 9:23 p.m. WALTER C. BLESSED, City Clerk