City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, OCTOBER 16, 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 Economic Development events at the Velocity Collaboration Center:  Workforce Panel – Hot Topics to be held on October 24, 2012 starting at 12 noon.  FastTrac New Venture Entrepreneurial Training – Business Plan Course is a ten- week program being held on Mondays at 8:30 am-12 noon and runs through November 12th.  Oakland Lean Green Belt Certification provides companies with the tools necessary to make strategic decisions about diversification.  Small Business Administration Meet the Lenders Event to be held on Tuesday, October 23, 9 am to noon. Mr. Vanderpool encouraged all residents with a special invitation to students in the audience to join with the SHINE program for another Pride & Shine Day to be held on Saturday, November 3, 2012. Mr. Vanderpool reported on the Presidential General Election to be held Tuesday, November 6, 2012 and reminded residents to check their new voter cards since precincts Regular City Council Meeting Tuesday, October 16, 2012 Page 2 were renumbered. Additionally, due to Election Day, the next scheduled City Council Meeting is Wednesday, November 7th. Mayor Notte announced the International City Manager’s Association (ICMA) recently recognized the City Manager for his 25 years of public service. PRESENTATION Councilwoman Ziarko presented the Nice Neighbor award to The Home Depot Foundation in recognition of their efforts to promote exceptional property maintenance throughout the City and for its volunteer and financial contributions to SHINE. PUBLIC HEARING 1. Mayor Notte opened the public hearing to consider the application by Acra Grinding Company for an Industrial Facilities Tax Exemption Certificate at 40597 Brentwood Drive. Economic Development Manager Kasey Green made a presentation and introduced Mr. Jim Lindsay from Acra Grinding Company. Mr. Lindsay stated without the support of Sterling Heights and Mayor Notte it would not have been easy for this company to move on. They want to remain in the City and through this cooperation and effort they will continue to stay here. Mr. Jeffrey Norgrove spoke in support of the tax abatement, stating business is the backbone of this City and the neighborhoods are the lifeblood. The benefits greatly outweigh any repercussions that we might have. He stated he is in support of Items 2, 3 and 4 also. Mr. Norgrove asked one of the Council members to explain what this actually does and how it benefits the City. Mayor Notte closed the public hearing. Moved by Romano, seconded by Schmidt, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by Acra Grinding Company at 40597 Brentwood Drive 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 Romano appreciates this company staying in our City. Regular City Council Meeting Tuesday, October 16, 2012 Page 3 Councilwoman Schmidt pointed out this company would be paying the City approximately $26,000 a year in City taxes. This abatement is for $1,742 a year off their tax bill. She appreciates their expansion and the retaining of 97 jobs, with an additional three to follow. Councilman Smith doesn’t believe the company would pack up and leave the City if they didn’t receive this tax break. He is opposed to the request because of the City’s financial condition. Vote on motion: Yes: Romano, Schmidt, Taylor, Ziarko, Koski, Notte. No: Smith. The motion carried. 2. Mayor Notte opened the public hearing to consider the application by Aperam Stainless Services & Solutions USA LLC for an Industrial Facilities Tax Exemption Certificate at 6775 Center Drive. Economic Development Manager Kasey Green pointed out the Applicant realized that it had supplied the City with the wrong facility address for this investment after the public hearing had been set. The investment location is 33500 Mound Road, which represents a new facility in Sterling Heights for applicant’s operations. The Applicant has withdrawn it application for 6775 Center Drive. Because notice of the public hearing had been published, the Mayor had to open the public hearing to afford any interested party who appears with an opportunity to be heard. Mayor Notte opened the public hearing. There was no audience participation at this time. Mayor Notte closed the public hearing. Moved by Schmidt, seconded by Ziarko, RESOLVED, to indefinitely postpone action on the application for an Industrial Facilities Tax Exemption Certificate by Aperam Stainless Services & Solutions USA LLC at 6775 Center Drive. Yes: All. The motion carried. 3. Mayor Notte opened the public hearing to consider the application by Ford Motor Company for an Industrial Facilities Tax Exemption Certificate at 39000 Mound Road. Regular City Council Meeting Tuesday, October 16, 2012 Page 4 Economic Development Manager Kasey Green made a presentation on both items 3 and 4 and introduced Mr. Nick Broji, plant manager at Sterling Axle Plant, Gabi Bruno from Government Relations and Brenda Beck, Ford’s Tax Office. Mr. Broji explained the transformation at the Sterling Axle Plant and stated this project will help secure the plant’s future. He pointed out at the end of last year they had 250 employees that were on temporary layoff and they brought all of them back and hired 200 more. They will retain 800 jobs and add an additional 14. He appreciates the support they have received from the City. Mayor Notte closed the public hearing. Moved by Ziarko, seconded by Schmidt, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by Ford Motor Company at 39000 Mound Road is hereby approved for a period of twelve years after completion of the project, 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 appreciates Ford Motor Company investing in our City and wishes them well. Councilwoman Schmidt asked Roxanne Reeder, Interim City Assessor, how much the Sterling Axle Plant pays in property taxes every year. Mr. Vanderpool responded Ford in total pays approximately $2,561,777 annually and about half of that would be generated from the Sterling Axle Plant. Councilwoman Schmidt questioned the amount of money being abated with this exemption. Miss Green responded they would continue to pay that almost $2.6 million in taxes that is not abated by this action. It is 50% of the taxes on the new investment only, which is approximately $89,000. Councilwoman Schmidt pointed out Ford Motor Company is still one of the highest taxpaying entities in the City with $2.6 million a year. Councilman Smith questioned where Mr. Broji resides and stated he would hope that a plant manager of this facility would see fit to be a property owner and taxpayer in our Regular City Council Meeting Tuesday, October 16, 2012 Page 5 City. He discussed the old equipment that would be scrapped out with this modernization. He inquired whether the City was collecting personal property taxes on the old equipment and stated that needs to be added into the equation. Councilman Smith stated the City cannot afford to be giving away money like this and he is opposed to this abatement request. Councilman Taylor pointed out Ford Motor Company is one of our best citizens and they are paying so much money in taxes to this City. He stated without them here, every one of the residents would be paying more or getting less services. He is proud that Ford Motor Company is continuing to call Sterling Heights its home. Councilman Taylor thanked Ford Motor Company for continuing their investment in Sterling Heights and retaining jobs here. He pointed out the City is receiving additional money in taxes that we would not be getting if this investment were not here. Councilman Romano discussed the additional money being spent in the City by the employees for food, gas, etc. Councilwoman Koski thanked Ford Motor Company for their decision to stay in Sterling Heights. She pointed out for the last six years this Council has worked on economic development to try and bring in new businesses for the City. She is pleased to help them in this small way. Mayor Notte pointed out the state law, Public Act 198 that was initiated in 1974 for the state to bring in more industry from other states. It puts cities in competition with one another to get this industry. Sterling Heights has always been very positive and proactive on tax abatement. Mayor Notte asked the plant manager the number of employees at the Sterling Axle Plant. Mr. Broji responded 1,744 hourly and 37 salaried. Mr. Neil Wall stated the residents of Sterling Heights need to understand that Ford Motor Company is competing against other viable corporations that are offshore or in North America and they are also vying for these products and commodities and they are getting tax abatements. Vote on motion: Yes: Ziarko, Schmidt, Taylor, Koski, Notte, Romano. Regular City Council Meeting Tuesday, October 16, 2012 Page 6 No: Smith. The motion carried. 4. Mayor Notte opened the public hearing to consider the application by Ford Motor Company for an Industrial Facilities Tax Exemption Certificate at 41111 Van Dyke. There was no audience participation at this time. Mayor Notte closed the public hearing. Moved by Schmidt, seconded by Romano, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by Ford Motor Company at 41111 Van Dyke is hereby approved for a period of twelve years after completion of the project, 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 questioned whether the plant manager or a representative of the transmission plant was present. Miss Gabby Bruno, Government Relations for Ford Motor Company, was present. Councilman Smith inquired Miss Bruno’s residency. He pointed out he is not talking against Ford Motor Company, but with their success and high profitability they are not a hardship case that needs a tax break. Councilwoman Ziarko pointed out Ford Motor Company has met all the requirements by the state and City in order to receive this tax abatement. Nowhere does it state that employees of the company have to be residents of Sterling Heights and it would be unfair if they hired only Sterling Heights residents. She stated in regard to the old equipment that was being disposed of, she is sure that equipment was used for a number of years and has been completely depreciated. She is glad they have decided to reinvest in our community and it is a benefit to all of us. Vote on motion: Yes: Schmidt, Romano, Taylor, Ziarko, Koski, Notte. No: Smith. The motion carried. ORDINANCE INTRODUCTION Regular City Council Meeting Tuesday, October 16, 2012 Page 7 5. Police Captain Thomas Fett made a presentation as it relates to the City’s participation in the Macomb County Emergency Management Program. He pointed out Police Chief Mike Reese was also present, along with Interim Fire Chief Chris Martin and Macomb County Emergency Management coordinator Vicki Wolber. Mr. Jeffrey Norgrove is glad to see the City on top of this and hopes we would never have to use it. He hopes the City Council would support this also. Mr. Harry Marchlones questioned the number of people that would be hired, the additional hours of labor involved and how much it would cost the City. Moved by Romano, seconded by Ziarko, RESOLVED, to introduce an ordinance amending Chapter 15 of the City Code to reflect the City’s participation in the Macomb County Emergency Management Program. Councilwoman Ziarko questioned the number of active CERT volunteers at this time. Captain Fett responded 50 active volunteers. Councilwoman Ziarko questioned whether Sterling Heights would be called in to help if another municipality had an emergency. Miss Wolber responded yes the City could be called in. Councilwoman Schmidt questioned whether they have this arrangement with any other municipalities in the County. Miss Wolber responded yes 22 others. Councilwoman Schmidt questioned how the DPW fits into all of this. Captain Fett responded they would work in coordination with them on any activity; they are involved and part of the process. Councilwoman Koski questioned who does the continuing education as far as CERT member training. Captain Fett responded that is under the Police Training Bureau. It is all in-house people with the help of the Fire Department. Councilwoman Koski questioned how a person would participate in the CERT Program and where they could obtain additional information. Regular City Council Meeting Tuesday, October 16, 2012 Page 8 Captain Fett explained there is an application process on the City’s website under the Police Department with information on the CERT program. The person would fill out their application online and email it to the City or they could call his office. Yes: All. The motion carried. Moved by Romano, seconded by Ziarko, RESOLVED, to adopt a Resolution approving an Emergency Management Agreement between the City of Sterling Heights and Macomb County, and to authorize the City Manager to execute the Agreement on behalf of the City. RESOLUTION FOR INCLUSION IN THE MACOMB COUNTY EMERGENCY MANAGEMENT PROGRAM WHEREAS, the City of Sterling Heights elects to become part of the Macomb County Emergency Management Program and will provide for mitigation, preparedness, response, and recovery from natural and human-made disasters; WHEREAS, the City of Sterling Heights will provide a means for coordinating resources of the municipality with those of the County; WHEREAS, the City of Sterling Heights desires to appoint the County’s emergency management coordinator as the City’s emergency management coordinator as permitted by state law; and WHEREAS, the City of Sterling Heights will provide an emergency management liaison to work with the County’s emergency management coordinator. NOW, THEREFORE, BE IT RESOLVED, pursuant to Act No. 390 of the Public Acts of 1976 as amended, the Sterling Heights City Council hereby adopts and approves the Emergency Management Agreement between the City of Sterling Heights and Macomb County, and authorizes the City Manager to execute the Agreement on behalf of the City; and BE IT FURTHER RESOLVED that the City of Sterling Heights will provide a means through which the Sterling Heights City Council may exercise the authority and discharge the responsibilities vested in it by this Resolution and Act No. 390 of the Public Acts of 1976, as amended. The foregoing resolution was adopted at a regular meeting of the City Council on the 16th day of October, 2012. IN WITNESS WHEREOF, I have set my official signature, this 16th day of October, 2012: WALTER C. BLESSED, City Clerk Yes: All. The motion carried. ORDINANCE ADOPTION 6. Moved by Ziarko, seconded by Schmidt, BE IT ORDAINED, to adopt an ordinance amending Chapter 2, Article II, §§2-17 and 2-19 of the City Code to conform the listing Regular City Council Meeting Tuesday, October 16, 2012 Page 9 of administrative officers to the Administrative Code and Plan as confirmed at the October 2, 2012 regular meeting. CITY OF STERLING HEIGHTS MACOMB COUNTY, MICHIGAN ORDINANCE NO. 420 AN ORDINANCE TO AMEND CHAPTER 2, ARTICLE II, §§2-17 AND 2-19 OF THE CITY CODE TO CONFORM THE LISTING OF THE ADMINISTRATIVE OFFICERS TO THE ADMINISTRATIVE CODE AND PLAN AS CONFIRMED BY CITY COUNCIL EFFECTIVE OCTOBER 16, 2012 THE CITY OF STERLING HEIGHTS ORDAINS: SECTION 1. Section 2-17 of Article II, Chapter 2 of the Code of Ordinances shall be amended to read as follows: 2-17. ADMINISTRATIVE DEPARTMENTS. The administrative service of the city shall consist of the following departments: (A) City Administration; (B) Community Relations; (C) Fire; (D) Community Services; (E) Police; (F) Public Works. (1968 Code, § 2-17; Ord. No. 201-C, § 1, 12-16-86; Ord. No. 201-D, § 1, 6-21-88; Ord. No. 201E, § 1, 10-31-88; Ord. No. 201-F, § 1, 5-2-89; Ord. No. 201-G, § 1, 12-19-89; Ord. No. 201- H, § 1, 6-7-94; Ord. No. 201-J, § 1, 4-18-95; Ord. No. 201-K, § 1, 8-17-99; Ord. No. 357, § 1, 12-18-01; Ord. No. 406, § 1, 7-21-09; Ord. No. 415 § 1, 7-5-11; Ord. No. ___ § , _-_-12) SECTION 2. Section 2-19 of Article II, Chapter 2 of the Code of Ordinances shall be amended to read as follows: 2-19. CREATION OF ADDITIONAL ADMINISTRATIVE OFFICERS. The following additional administrative officers are created in accordance with § 7.01(A) of the City Charter: Broadcast Services Manager, Building Official/Facilities Maintenance Manager, City Engineer, City Planner, Community Relations Director, Controller, Economic Development Manager, Human Resources Director, Information Technology Manager, Parks and Recreation Manager, City Development Manager, and Purchasing and Risk Manager. (1978 Code, § 2-19; Ord. No. 201-C, § 1, 12-6-86; Ord. No. 201-D, § 2, 6-21-88; Ord. No. 201E, § 2, 10-31-88; Ord. No. 201-F, § 2, 5-2-89; Ord. No. 201-G, § 2, 12-19-89; Ord. No. 288, § 1, 12-11-90; Ord. No. 201-H, § 1, 6-7-94; Ord. No. 201-J, § 1, 4-18-95; Ord. No. 201-K, § 1, 8-17- 99; Ord. No. 357, § 1, 12-18-01; Ord. No. 389 § 2, 4-3-07; Ord. No. 406, § 3, 7-21-09; Ord. No. 415 § 3, 7-5-11; Ord. No. ___ § , _-_-12) SECTION 3. All other provisions of the Code of Ordinances not specifically amended shall remain in full force and effect. Regular City Council Meeting Tuesday, October 16, 2012 Page 10 SECTION 4. This ordinance shall become effective immediately upon publication of a notice of adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Sterling Heights on the 2nd day of October, 2012, and was duly adopted at a regular meeting of the City Council of the City of Sterling Heights on the16th day of October, 2012. WALTER C. BLESSED, City Clerk INTRODUCED: 10/02/12 ADOPTED: 10/16/12 PUBLISHED: 10/21/12 EFFECTIVE: 10/21/12 Yes: All. The motion carried. CONSENT AGENDA 7. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda: A. To approve the minutes of the Regular Meeting of October 2, 2012, as presented. B. To approve payment of the bills as presented: General Fund - $1,587,649.93, Water & Sewer Fund - $1,359,663.15, Other Funds - $3,359,287.27, Total Checks - $6,306,600.35. C. RESOLVED, to set a public hearing date of November 7, 2012 at 7:30 p.m. regarding the application by NBRF, LLC to establish an Industrial Development District at 6450 Dobry Drive. D. RESOLVED, to award the bid for printing of the City of Sterling Heights magazine to Grand Blanc Printing Company, Inc., 9449 Holly Road, Grand Blanc, MI 48439 for a one-year period and authorize the City Manager to exercise the City’s option to extend the bid period for one additional year at the following unit prices: Price per printing (53,500 pieces) $11,188.80 Bundling and Delivery to Post Office Included E. RESOLVED, to approve the ON-Site Fire Protection Agreement between the City of Sterling Heights and A.G. Simpson (6700) Inc. for 6700 18 ½ Mile Road and authorize the Mayor and City Clerk to sign the Agreement on behalf of the City. F. RESOLVED, to adopt the resolution directing the City Engineer to fulfill the requirements of City Code §47-6 in preparation for the public hearing on the Gardner Street Asphalt Paving Special Assessment District. Regular City Council Meeting Tuesday, October 16, 2012 Page 11 RESOLUTION Gardner Street Special Assessment District 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 16th day of October, 2012 at 7:30 p.m., Eastern Daylight Savings Time. 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, this City Council has been presented with information concerning the undertaking of certain local public improvements consisting of street paving together with all necessary appurtenances and attachments, the cost of which improvements are to be paid in whole or in part by the levy of a special assessment; and WHEREAS, Chapter 47 of the City Code of Ordinances requires the preparation and presentation of certain information before the Council determines to make any such local public improvement to be defrayed by special assessment; NOW, THEREFORE, BE IT RESOLVED THAT : 1. The City Engineer be and is hereby directed to ascertain the assessed valuation of all property affected by the proposed improvement, the number of parcels which show tax delinquencies, the number of parcels owned by public authorities and the number of parcels which are vacant and further to prepare or cause to be prepared plans and specifications therefore and an estimate of the cost thereof and to file the same with the City Clerk together with the City Engineer's recommendation as to what proportion of the cost of the improvement should be paid by special assessment and what part, if any, should be a general obligation of the City, the number of annual installments in which assessments may be paid and the lands to be included in the special assessment district. 2. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and they hereby are rescinded. AYES: Koski, Romano, Notte, Schmidt, Smith, Taylor, Ziarko. NAYS: None. Regular City Council Meeting Tuesday, October 16, 2012 Page 12 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 16th day of October, 2012. WALTER C. BLESSED, City Clerk G. RESOLVED, to receive the lawsuit, Mohamed Alhalmi v. City of Sterling Heights, 41A District Court Case No. S-12-4666-GZ. Yes: All. The motion carried. CONSIDERATION 8. Miss Kasey Green made a presentation as it relates to the applications by Ford Motor Company to extend the term of Industrial Facilities Tax Exemption Certificate #2011-022 and revise the final cost of the personal property investment made pursuant thereto at 41111 Van Dyke. She explained on October 5, 2010, City Council approved an Industrial Facilities Tax Exemption Certificate for a term of one-year for Ford Motor Company based upon a proposed personal property investment of $42,780,000 at 41111 Van Dyke. The recommendation for a one-year term was based on multiple property value appeals filed by the Applicant and pending at the time application for the IFEC was considered by the City Council. The pending appeals have been resolved. On June 29, 2012, Applicant filed an amended IFEC application seeking to extend the term of the existing IFEC #2011-022 for an additional eleven years. The applicant has also made application to increase the total personal property cost associated with this existing tax abatement by $9,092,200, or from $42,780,000 to $51,872,200. Miss Green pointed out they would continue to pay 50% of their taxes on this investment in addition to the taxes on their existing property. This additional investment would result in $114,000 in new tax revenue for the City and an additional $127,000 in tax revenue to the other taxing jurisdictions. She stated representatives for the company are available for questions. Moved by Taylor, seconded by Notte, RESOLVED, that the application for an extension of Industrial Facilities Tax Exemption Certificate #2011-022 by Ford Motor Company at Regular City Council Meeting Tuesday, October 16, 2012 Page 13 41111 Van Dyke is hereby approved for a period of eleven 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 Taylor stated he wanted to go along with a twelve-year abatement at the time of the original application. He stated this is a very serious discussion and we are here to do what is in the best interest of the City. Councilman Smith pointed out according to state law, tax breaks are not illegal; they are discretionary. He stated just because we can give them out, doesn’t mean we have to. Councilwoman Ziarko clarified for the residents the reason they were only given a one- year abatement in 2010 was based on the recommendation of the Assessing office. Councilwoman Schmidt reconfirmed that Ford Motor Company is one of the highest taxpaying entities in our City and she thanks them for that. She is totally comfortable with the representation that is here from the company and doesn’t need a plant manager. Vote on motion: Yes: Taylor, Notte, Koski, Romano, Schmidt, Ziarko. No: Smith. The motion carried. Moved by Taylor, seconded by Notte, RESOLVED, to approve the request by Ford Motor Company for a revised personal property cost of $51,872,200 for Industrial Facilities Tax Exemption Certificate #2011-022 at 41111 Van Dyke. Yes: Taylor, Notte, Romano, Schmidt, Ziarko, Koski. No: Smith. The motion carried. 9. Moved by Romano, seconded by Taylor, RESOLVED, that the request with the Michigan Liquor Control Commission to transfer ownership of 2011 Class C licensed business with Dance Permit located at 4065 E. Fifteen Mile Road, Sterling Heights, MI 48310, Macomb County, from Ben-Ji Sports Bar LLC to Skorz Investments, Inc. is recommended for approval. Mayor Notte pointed out Kevin and Mark Denhas are the owners of the property and Mr. Hind is present on their behalf. Yes: All. The motion carried. Regular City Council Meeting Tuesday, October 16, 2012 Page 14 COMMUNICATIONS FROM CITIZENS Mr. Jeffrey Norgrove – Nelson Park South volunteer project. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL There were no reports at this time. ADJOURN Moved by Romano, seconded by Ziarko, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 9:00 p.m. WALTER C. BLESSED, City Clerk