City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, SEPTEMBER 18, 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 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 the curbside recycling program and indicated 4,200 residents have signed up for the service through Waste Management. To launch “Recycle Sterling Heights”, the program requires that a minimum of 5,000 housing units sign up for the program to initiate service this fall. He explained residents who sign up for this program would receive every-other-week curbside recycling service and a new 96-gallon cart. The cost of the recycling program is billed directly to each resident at $4.95 per month plus a one-time $5 account setup fee. Mr. Vanderpool reported on Library events: National Library Card Month where Sterling Heights residents can show their Sterling Heights Library card to select area businesses for special discounts. Homebound & Outreach Services offer special materials and services that assist those who are experiencing difficulty in reading. The Library maintains large print deposit collections at various senior residence sites in the City. This service is available to residents who are unable to visit the Library. Over 6,000 large print books and audio CDs are available at the Library. Regular City Council Meeting Tuesday, September 18, 2012 Page 2 PRESENTATION Councilman Romano presented the Nice Neighbor award to Ben and Brenda Broome, nominated by Gene and Della Parker. PUBLIC HEARING 1. Mayor Notte opened the public hearing to consider an application by US Farathane Corporation for an Industrial Facilities Tax Exemption Certificate at 38000 Mound Road. Ms. Kasey Green, Economic Development Manager, made a presentation and stated Mr. Rick Knappe, CFO on behalf of US Farathane and Roxanne Reeder from the Assessing Office were present. Mayor Notte opened the discussion to the audience: Mr. Harry Marchlones discussed the need for further information from the petitioners as to why they want a tax abatement, how they meet the criteria and what they plan to accomplish. Mr. Joe Judnick is opposed to tax abatements and stated the City needs additional revenue for police and firefighters. He doesn’t agree with the statement about the trickle-down effect that the employees would eat lunch or shop in the City. Mr. Charles Jefferson questioned the company’s plan for the future and whether there would be some check as to whether the stated jobs were actually created. He had the same concerns about the amount of money that employees would spend on lunches in the City. Mayor Notte closed the public hearing. Moved by Ziarko, seconded by Romano, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by US Farathane Corporation at 38000 Mound Road is hereby approved for a period of three 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 is in favor of this tax abatement. She inquired of the petitioner how energy efficient the new machines would be, whether they expect additional sales because they would have the ability to make different parts with these machines, how Regular City Council Meeting Tuesday, September 18, 2012 Page 3 they dispose of the excess materials and whether they considered expanding their operation at another location besides Sterling Heights. Councilwoman Ziarko inquired of Roxanne Reeder whether this company met all the state and local requirements for this tax abatement. She also inquired whether the City made any exceptions for this company. Mr. Vanderpool pointed out the very stringent guidelines the City has based on the number of jobs created and the amount of investment. Councilman Romano discussed the trickle-down effect from the new investments and stated a half-hour lunch is possible because people call in their order and then have someone pick it up or it is delivered to them. They buy gas for their cars in the City. Councilman Romano stated in order to obtain a tax abatement, the companies have to meet certain criteria. The City of Sterling Heights cannot afford a reputation of being unfriendly to businesses and risk having them go to another city. Councilwoman Koski pointed out this company qualifies for 7 years, but we are only giving them 3 years because that is the length of the lease. Councilwoman Schmidt stated as a point of clarification that these tax abatements are solely on the new investment. We still collect 100% of the real property taxes. Mr. Vanderpool pointed out one of the reasons Sterling Heights has such a strong tax base is because we have a very strong manufacturing and commercial tax base. Councilman Smith spoke in opposition to the tax abatement. Councilman Taylor stated he personally takes advantage of any tax credit or discount he is eligible for and doesn’t take into consideration the financial condition of the government. This should not weigh into the company’s decision when they avail themselves of the tax laws. He stated tax abatements are a good policy to implement in Sterling Heights when surrounding communities are giving these tax abatements. Mayor Notte spoke in favor of the tax abatement and stated it is a state law to bring industry to Michigan and put cities, townships and communities in competition with one another. The City needs the tax abatements to bring in and retain businesses and we can’t risk losing business by refusing to grant tax abatements. Vote on motion to approve the tax exemption: Regular City Council Meeting Tuesday, September 18, 2012 Page 4 Yes: Ziarko, Romano, Taylor, Koski, Notte, Schmidt. No: Smith. The motion carried. 2. Mayor Notte opened the public hearing to consider an application by US Farathane Corporation for an Industrial Facilities Tax Exemption Certificate at 42155 Merrill Road. Ms. Kasey Green, Economic Development Manager, made a presentation. Mayor Notte opened the discussion to the audience: Mr. Joe Judnick spoke in opposition to the tax abatement and feels the company should be able to pay their fair share. Mayor Notte closed the public hearing. Moved by Ziarko, seconded by Romano, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by US Farathane Corporation at 42155 Merrill Road is hereby approved for a period of six 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 Smith stated the City has the right to grant the tax abatements, but we don’t have to. He is opposed to the request. Yes: Ziarko, Romano, Taylor, Koski, Notte, Schmidt. No: Smith. The motion carried. CONSENT AGENDA 3. Mr. Dennis White questioned Item G and inquired whether it is really necessary for the lawsuit items to come before the City Council Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda: A. To approve the minutes of the Regular Meeting of September 4, 2012, as presented. B. To approve payment of the bills as presented: General Fund - $503,507.59, Water & Sewer Fund - $1,496,032.54, Other Funds - $797,559.63, Total Checks - $2,797,099.76. C. RESOLVED, to direct the City Attorney to prepare the necessary agreement to vacate a portion of the existing water main easement for the proposed A.E.K. Inc. Regular City Council Meeting Tuesday, September 18, 2012 Page 5 development, Section 1, SPR-3215, and the Mayor and City Clerk are hereby authorized to sign the Agreement on behalf of the City. Also, RESOLVED, that City Council indicates no objection to the issuance of a building permit for A.E.K. Inc., Section 9, SPR-3349, subject to the following: 1. That site plans and building plans be approved by the Administration prior to issuance of a building permit. 2. That the developer pays all costs incurred by the City in the preparation of the easement vacation document(s), including attorney fees. 3. That the developer agrees in writing to indemnify and hold the City, its officers and employees, harmless from all damages to persons or property arising from construction activities in the existing easement prior to completion of the vacation process. D. RESOLVED, to purchase a sewer inspection camera system and accessories from Cues, Inc., 3600 Rio Vista Avenue, Orlando, FL 32805, through a Houston – Galveston Area Council cooperative bid at a total cost of $126,354.41, and authorize the City Manager to sign all documents in conjunction with this purchase. E. RESOLVED, to award the bid for a 2013 GMC Sierra 2500HD extended cab 4 x 4 pickup, with 8-foot box and snowplow, to Red Holman Pontiac GMC, in the amount of $28,430 and authorize a budget amendment appropriating $430.00 from Capital Project Fund reserves to the Capital Vehicles Budget – Streets Division (account #43790901-984444). F. RESOLVED, to accept the proposal by MR Valuation Consulting, LLC, 5 Professional circle, Suite 208, Colts Neck, NJ 07722 for professional appraisal services in connection with pending tax appeals filed by Comcast of Sterling Heights and authorize the City Manager to sign all documents required in conjunction with this acceptance. G. RESOLVED, to receive the lawsuit, Brent Melvin Mathews v. City of Sterling Heights, 41A District Court Case No. S-12-4110-GZ. Yes: Koski, Romano, Taylor, Koski, Notte, Smith. Abstained: Ziarko (on Item C). The motion carried. Regular City Council Meeting Tuesday, September 18, 2012 Page 6 CONSIDERATION 4. Mr. Joe Judnick spoke in favor of the entertainment permit for ACPB LLC d/b/a Cada’s Poker and Sports Grill. Moved by Schmidt, seconded by Romano, RESOLVED, that the request for an entertainment permit from ACPB LLC d/b/a Cada’s Poker and Sports Grill, 44935 Hayes, be considered for approval. Councilwoman Schmidt questioned the type of entertainment they are planning for this facility. Yes: Schmidt, Romano, Taylor, Koski, Notte, Ziarko. No: Smith. The motion carried. 5. Mr. Vanderpool made a presentation as it relates to the amendments to the Ethics Principles and Guidelines Resolution and clarified the rule about the City Council’s interaction with board and commission members. He also pointed out in regard to the City of Sterling Heights Governing Body Rules of Procedure the change suggested to prevent the use of Citizen Communication for the purpose of announcing or advancing a speaker’s candidacy for public office. Mr. Mike Lombardi urged the Council to stop this now before we expose the City to extreme legal jeopardy. He discussed the City Council’s right to freedom of speech and stated they have more than ample time to express it at the Council table. Mr. Harry Marchlones discussed the word “shall” vs the word “should” and stated he found 11 violations in the Ethics document. Mr. Joe Judnick questioned whether this amendment would cover council members actions regarding candidates and others collecting signatures on petitions, posting on Facebook or asking for political favors. There was a motion on the floor from the meeting of August 21: Moved by Ziarko, seconded by Notte, RESOLVED, to approve the amendment to the Ethics Principles and Guidelines Resolution adding Principle No. 4B to Section II to prevent impermissible contacts by a Council member with City boards, commissions and committees for the purpose of influencing a pending case or item of official business. Regular City Council Meeting Tuesday, September 18, 2012 Page 7 Councilwoman Ziarko withdrew her motion. Moved by Ziarko, seconded by Notte, RESOLVED, to approve the amendment to the Ethics Principles and Guidelines Resolution adding Principle No. 4B to Section II, as amended, to prevent impermissible contacts by a Council member with City boards, commissions and committees for the purpose of influencing a pending case or item of official business. Councilwoman Ziarko pointed out her intention for requesting this amendment is not to influence board members and she is trying to protect the commissions against any pressure that might come from council members. Councilman Taylor requested Mr. Bahorski clarify the term “public official” in this amendment and whether that relates only to City Council members. Mr. Bahorski responded the term applies not only to City Council members but other City officials. Councilman Taylor had an issue with Section 4, item B and stated a member of a board or commission or even a City Council member should have the right to appear before the board of review on his or her own property taxes or any other board if it affects their personal property. Councilwoman Koski agrees with Councilman Taylor and stated she wants to see this amendment written in plain language to state Council members do not interfere or try to influence any board member’s vote. Councilwoman Schmidt agrees with the comments made by Councilwoman Koski and believes that is the intent of Councilwoman Ziarko. Councilman Romano sees the concerns of Councilman Taylor and Councilwoman Koski and pointed out the last sentence in that paragraph that allows the public official to address or communicate with the board, commission or committee as an interested resident as long as they don’t suggest that their status as a public official should be given special consideration. Councilman Smith stated the City Council appoints people to do part of their jobs and the voters have a right to have recourse over the boards and commissions. He sees no need for this provision. Regular City Council Meeting Tuesday, September 18, 2012 Page 8 Mayor Notte believes the resolution in front of the City Council is weak and should state what is and is not permissible contact. Councilwoman Ziarko stated she doesn’t believe her intention is clear in this particular amendment and asked that it be postponed to the first of the year to give City Council members an opportunity to approach Mr. Bahorski with their comments and concerns. Councilwoman Ziarko withdrew her motion. Moved by Ziarko, seconded by Schmidt, to postpone an amendment to the Ethnics Principles and Guidelines Resolution to the first meeting in January. Yes: All. The motion carried. Moved by Ziarko, seconded by Notte, RESOLVED, to approve an amendment to Rule No. 5 of the City of Sterling Heights Governing Body Rules of Procedure to prevent the use of Citizen Communication for the purpose of announcing or advancing a speaker’s candidacy for public office. Councilwoman Ziarko discussed the need to have a rule in place so the Mayor could call someone out of order. Councilman Taylor supports this amendment and stated this is not the time or the place for a candidate to announce their candidacy and ask you for your vote. He doesn’t see any problem with them coming before the City Council on a resident’s behalf, but we need to know where to draw the line. Mayor Notte agrees with Councilman Taylor and stated it is up to the chairman and the Council members to call someone out of order. This amendment is really to prevent a person from announcing their candidacy. Councilman Smith stated a person running for office could still address the Council on City business and gain some personal recognition. Yes: All. The motion carried. 6. Moved by Romano, seconded by Notte, RESOLVED, to appoint Jeanne Schabath to the Cultural Commission to a term ending 06/30/14, subject to the appointee meeting the qualifications set forth in Charter §4.30 and taking the oath of office within two weeks. Yes: All. The motion carried. Regular City Council Meeting Tuesday, September 18, 2012 Page 9 Moved by Romano, seconded by Notte, RESOLVED, to appoint George Kurzatkowski to the Historical Commission to a term ending 06/30/13, subject to the appointee meeting the qualifications set forth in Charter §4.30 and taking the oath of office within two weeks. Yes: All. The motion carried. 7. Mr. Vanderpool made a presentation on the collective bargaining agreement between the City of Sterling Heights and Michigan Association of Police (MAP) Police Clerical Employees Association. Moved by Ziarko, seconded by Schmidt, RESOLVED, to approve the collective bargaining agreement and memorandum of understanding between the City of Sterling Heights and MAP Police Clerical Employees Association for the period of July 1, 2011 through June 30, 2013 and authorize the Mayor and City Clerk to sign all documents in conjunction with this approval. Yes: All. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Harry Marchlones – Recycling program. Mr. Mike Lombardi – City Charter provisions. Mr. Joe Judnick – Fire Chief search; status of Polish Market on Mound Road; Personal attacks. Mr. Charles Jefferson – Comments made by Mr. Judnick. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL There was no report from Mr. Bahorski at this time. Mr. Vanderpool responded to comments from residents. Councilman Romano responded to Mr. Judnick that he does speak up when someone is making a personal attack and he pointed that out to Mr. Jefferson at the last meeting. Councilman Smith pointed out there are 30,000 residential households in the City and 5,000 would be 17%. He expressed his skepticism about the people sorting the trash. Mayor Notte pointed out we have about 53,000 households, including mobile home parks, apartments and condominiums. ADJOURN Regular City Council Meeting Tuesday, September 18, 2012 Page 10 Moved by Ziarko, seconded by Romano, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 9:35 p.m. WALTER C. BLESSED, City Clerk