City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, DECEMBER 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, Barbara A. Ziarko. Council Member absent: Michael C. Taylor. 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 F & G be made Consideration Items 5 and 6 respectively. Moved by Koski, seconded by Romano, to approve the Agenda as amended. Yes: Koski, Romano, Schmidt, Smith, Koski, Notte. Absent: Taylor. The motion carried. REPORT FROM CITY MANAGER Mr. Vanderpool reported on a new development at M-59 and Mound Road at The Forum at Gateways Shopping Center. He explained LA Fitness has recently submitted the necessary documents for renovating and occupying the former Farmer Jack Supermarket and plan to occupy it in a short period of time. Mr. Vanderpool discussed the Personal Property Tax legislation, which the state has been trying to repeal over the past two years, but they have not been able to identify a suitable replacement that is guaranteed and reliable. He pointed out there could be action as soon as tomorrow. Mr. Vanderpool pointed out this is a tax on businesses for their personal property, of which the revenue is used entirely to fund local services. The revenue generated does not go to the state; it goes directly to municipalities to fund all of our services. He stated the City receives about $8 million annually in personal property Regular City Council Meeting Tuesday, December 4, 2012 Page 2 taxes. There is a current proposal identifying two new revenue sources to replace most of the personal property taxes. Approximately 60% of the personal property taxes will be replaced by a new assessment on businesses to cover public safety costs for essential services. It is not known if businesses would legally challenge this assessment. There would be approximately $4 million at risk for the City if this were not passed at the local level. The second revenue replacement proposed by the legislation includes a state constitutional change that would redirect a portion of the state use tax to a new Metropolitan Authority. They would then reimburse cities for the 80% of the remaining amount not covered by the essential services assessment. He stated if the constitutional amendment fails, there is no guaranteed revenue replacement. The best-case scenario is that the City would lose approximately $1 million annually under this new proposal. The worst case is we could lose as much as $6 million annually or somewhere in between if new revenue resources do not come through. For these reasons, the Michigan Municipal League and municipalities across the state urge the state legislation not to repeal the personal property tax in lame duck. Mr. Vanderpool requested, along with the City Attorney, that the City Council convene in closed session at the conclusion of tonight’s agenda to discuss strategy in connection with closed bargaining agreements. PRESENTATION Ms. Susan Kattula, Chairperson of the Sterling Heights Ethnic Community Committee, introduced members of the committee in attendance: Mr. Ike Cabase, Ms. Betty Rush, Ms. Sharron Allen, Dr. Steve Naumovski, Mr. Doug Najor and Mr. Andrew Pulford. She invited the Mayor and City Council to assist her in presenting the 2012 Diversity Distinction Awards. Ms. Kattula presented the award to Sharon Hannawa, Program Manager with the Chaldean Community Foundation. Mr. Andrew Pulford presented the award to Christine Sauve, Southeast Communities Coordinator with Welcoming Michigan – Sterling Heights. (Her husband on her behalf accepted the award) Dr. Steve Namovski presented the award to Wiegand Mack Sales & Service. Regular City Council Meeting Tuesday, December 4, 2012 Page 3 Sgt. James Selewski presented the award to teacher Paul Coomes. Mr. Ike Cabase presented the award to Keller Williams Realty, located on Dodge Park in Sterling Heights. Ms. Kattula recognized Mr. Gerald Smith from Comcast for providing the funds for this year’s award trophies. Moved by Ziarko, seconded by Schmidt, RESOLVED, to individually and collectively recognize the 2012 Sterling Heights Diversity Distinction Award winners and thank them for their personal dedication and effort in championing diversity and creating a welcoming environment and inclusive community for all Sterling Heights residents. Yes: Ziarko, Schmidt, Smith, Koski, Notte, Romano. Absent: Taylor. The motion carried. Mr. Brian Baker presented an overview of the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2012. He thanked the entire Finance staff, Controller Leslie Reinhart and Treasurer Jennifer Varney, as well as the Treasurer’s Office staff. A power point was shown at this time and Mr. Baker introduced Mr. Mark Hurst from Plante & Moran. Mr. Hurst pointed out the City received another “unqualified opinion” again this year. He introduced Chris Ray, senior manager on the City’s account and Mr. Frank Schmidt, auditor in charge of overseeing the entire team that works with the City staff. Mr. Hurst discussed the 130 page Comprehensive Annual Financial Report and pointed out the opinion letter from Plante & Moran. He explained the audit process as well. Ms. Leslie Reinhart highlighted the City’s financial accomplishments for the past year. She presented the City with two awards: The top financial award from the Government Finance Officers Association (GFOA) for the City’s excellence in financial reporting and the Distinguished Budget Presentation award. The City has also received a special recognition award for performance measurements. Moved by Ziarko, seconded by Schmidt, RESOLVED, to receive and accept the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2012. Yes: Ziarko, Schmidt, Smith, Koski, Notte, Romano. Absent: Taylor. The motion carried. Regular City Council Meeting Tuesday, December 4, 2012 Page 4 ORDINANCE INTRODUCTION 1. Mr. Brian Baker, Finance & Budget Director, made a presentation on the budget amendments for Council’s consideration and pointed out this is the first reading of the ordinance. Moved by Koski, seconded by Ziarko, RESOLVED, to introduce the first amendment to the Appropriations Ordinance for the 2012/13 fiscal year. Yes: Koski, Ziarko, Notte, Romano, Schmidt, Smith. Absent: Taylor. The motion carried. 2. Mr. Donald Mende, Interim City Planner, made a presentation explaining the request by Sterling Land, LLC for a conventional rezoning for property on the east side of Dequindre Road, between 19 Mile Road and Forest Meade Drive from O-1 to R-100. He explained the Planning Commission reviewed this request on November 8, 2012 and recommended approval for the property to revert back to residential. Moved by Ziarko, seconded by Koski, RESOLVED, to introduce a map amendment to Zoning Ordinance No. 278 to conventionally rezone property on the east side of Dequindre Road, between 19 Mile Road and Forest Meade Drive, in Section 7 from O-1 (Business & Professional Office District) to R-100 (One-Family Residential District), Case No. Z-1124. Councilwoman Schmidt questioned the number of homes to be built and Mr. Mende responded 44 units, which is under the density requirements. Yes: Ziarko, Koski, Notte, Romano, Schmidt, Smith. Absent: Taylor. The motion carried. ORDINANCE ADOPTION 3. Moved by Schmidt, seconded by Ziarko, BE IT ORDAINED, to adopt the ordinance amending Chapter 49 of the City Code to adopt by reference the High Blood Alcohol Content drunk driving violation and provide for enhanced penalties. Yes: Schmidt, Ziarko, Koski, Notte, Romano, Smith. Absent: Taylor. The motion carried. CITY OF STERLING HEIGHTS MACOMB COUNTY, MICHIGAN ORDINANCE NO. 422 Regular City Council Meeting Tuesday, December 4, 2012 Page 5 AN ORDINANCE TO AMEND CHAPTER 49 OF THE CITY CODE BY ADDING SECTION 49-6 TO ADOPT SECTION 625(1)(c) OF THE MICHIGAN VEHICLE CODE BY REFERENCE AND BY AMENDING SECTION 49-4 AND DELETING SECTION 49-12 TO UPDATE THE PENALTY PROVISIONS FOR VIOLATIONS OF CHAPTER 49 THE CITY OF STERLING HEIGHTS ORDAINS: SECTION 1. Section 49-6 shall be added to Chapter 49 of the City Code to read as follows: 49-6. OPERATING WHILE INTOXICATED – ALCOHOL CONTENT OF .17 OR MORE. As permitted by and in accordance with the Home Rule City Act, Section 625(1)(c) of the Michigan Vehicle Code, codified as MCL 257.625(1)(c), as amended and as it may be amended from time to time, is adopted by reference. Violation of this section is punishable by 1 or more of the following: (a) Community service for not more than 360 hours. (b) Imprisonment for not more than 180 days. (c) A fine of not less than $200.00 or more than $700.00. Statutory reference: Authority, see M.C.L. § 117.3(k) SECTION 2. Section 49-4 of Chapter 49 of the City Code shall be amended to read as follows: 49-4. PENALTIES. The penalties provided by the Michigan Vehicle Code and the Uniform Traffic Code are adopted by reference, provided, however, that the city will not enforce any provision of the Michigan Vehicle Code for which the maximum period of imprisonment is greater than 93 days unless such enforcement is otherwise permitted by law. No term of imprisonment shall exceed 93 days, and no fine shall exceed $500 for a violation of this chapter, unless a higher term of imprisonment or a higher fine is otherwise permitted by law. SECTION 3. Section 49-12 of Chapter 49 of the City Code shall be deleted and reserved. SECTION 4. All other provisions of the Code of Ordinances not specifically amended shall remain in full force and effect. SECTION 5. 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 20th day of November, 2012, and was duly adopted at a regular meeting of the City Council of the City of Sterling Heights on the 4th day of December, 2012. WALTER C. BLESSED, City Clerk Regular City Council Meeting Tuesday, December 4, 2012 Page 6 INTRODUCED: 11/20/12 ADOPTED: 12/04/12 PUBLISHED: 12/09/12 EFFECTIVE: 12/09/12 CONSENT AGENDA 4. Moved by Koski, seconded by Romano, RESOLVED, to adopt the Consent Agenda, as amended: A. To approve the minutes of the Regular Meeting of November 20, 2012, as presented. B. To approve payment of the bills as presented: General Fund - $360,275.01, Water & Sewer Fund - $80,018.14, Other Funds - $374,883.17, Total Checks - $815,176.32. C. RESOLVED, to acknowledge the efforts of Eagle Scout candidate Alex Gauranskas in providing the City of Sterling Heights with an absentee ballot drop box, accept the donation by Boy Scouts of America Troop 208 in the amount of $737.50, and authorize an increase in the General Fund donation revenue account 11664040- 675000. D. RESOLVED, to accept the quote by Watertap, Inc., 56720 McKenzie Lane, South Lyon, MI 48178, for repair of water service tap at 34075 Ryan Road in the amount of $13,900. E. RESOLVED, to comply with Public Act 152 of 2011 by implementing the hard cap for the City’s contribution to the cost of employee health insurance effective January 1, 2013 and allocate the maximum City payment as follows: $5,692.50 for employees with single person coverage; $11,385.00 for employees with individual and spouse coverage; and $15,525.00 for employees with family coverage. F. Moved to Consideration Item 5. G. Moved to Consideration Item 6. H. RESOLVED, to approve the Administrative Services Agreement between Comerica Bank and the City of Sterling Heights and authorize the City Manager to sign all documents required in conjunction with this approval. I. RESOLVED, to approve the application by Admiral Metals, LLC for renewal of a junk yard license at 41200 Mound Road, Sterling Heights, MI 48314. Yes: Koski, Romano, Schmidt, Smith, Ziarko, Notte. Regular City Council Meeting Tuesday, December 4, 2012 Page 7 Absent: Taylor. The motion carried. CONSIDERATION 5. Item F from the Consent Agenda: Moved by Schmidt, seconded by Ziarko, RESOLVED, to set a public hearing on December 18, 2012 at 7:30 p.m. regarding the application by Aperam Stainless Services & Solutions USA LLC for an Industrial Facilities Tax Exemption Certificate at 33500 Mound Road. Councilman Smith moved to postpone items F & G to the first meeting in January. His motion lost for lack of support. Vote on motion to set the public hearing: Yes: Schmidt, Ziarko, Koski, Notte, Romano. No: Smith. Absent: Taylor. The motion carried. 6. Item G from the Consent Agenda: Moved by Koski, seconded by Ziarko, RESOLVED, to set a public hearing on December 18, 2012 at 7:30 p.m. regarding the application by Experi-Metal Inc. for an Industrial Facilities Tax Exemption Certificate at 6385 Wall Street. Councilman Smith pointed out the financial situation the City faces, where we are running the City with less money than we take in. He stated the City can not continue at the current rate of deficit spending and afford to give away these tax abatements with the promise of additional employment. Councilwoman Koski pointed out this is only setting a public hearing date and there would be an opportunity to make comments at the public hearing. Yes: Koski, Ziarko, Notte, Romano, Schmidt. No: Smith. Absent: Taylor. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Harry Marchlones – Resident survey; need for additional funding to support police and fire departments. Mr. Jeffrey Norgrove – Kudos on Sterling Christmas; Grass cutting on median; Concerts at Freedom Hill. Regular City Council Meeting Tuesday, December 4, 2012 Page 8 Mr. Charles Jefferson – Urges residents to take their vote seriously in the upcoming election; Need for change in the Meet the Candidates Night; Coalition of Mayors to address the violence problems. Ms. Maria Meyers – Thanked Councilman Romano and Councilwoman Koski for their vote to keep City dispatchers. Ms. Kim Austen – Against consolidation of Police dispatchers. Mayor Notte pointed out the lengthy discussion at the last meeting as it relates to the consolidation of police dispatchers. He stated this was an action the City Council had to take in order to prevent the layoff of 10 police officers and 4 firefighters. Mayor Notte stated the majority of the City Council made the responsible decision for the human element. He stated this agreement will enhance services in years to come and the City could not afford the technology that the County is putting into the central location. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Bahorski and Mr. Vanderpool pointed out the request for closed session to discuss labor issues. UNFINISHED BUSINESS 1. Councilman Romano disagreed with Mayor Notte on the police dispatcher item. He pointed out this agreement is two years down the line and he sees no reason to approve it so quickly. Councilman Romano stated he was never shown the concessions the dispatchers were willing to make. He pointed out to the residents the Police and Fire Chiefs are at-will employees. 2. Councilman Romano questioned Macomb County Sheriff Wickersham on the way his department would handle the noise factor at Freedom Hill. Sheriff Wickersham responded they would follow the noise ordinance of the City. Councilman Romano questioned whether the County has ample officers within the City to control traffic at Freedom Hill and the Sheriff indicated he does. He also stated he spoke with Police Chief Reese and they might be able to do some joint policing if the overtime ability is there and the City is interested. Councilwoman Koski agreed with the comments made by Councilman Romano. She added this action would not be taking place until 2014 and no dispatchers would be Regular City Council Meeting Tuesday, December 4, 2012 Page 9 laid off before that time. Councilwoman Koski believes more information is necessary and more questions need to be answered. She discussed the County dispatchers contract and the fact that our dispatchers might not find it attractive enough. NEW BUSINESS 1. Councilman Smith questioned the City’s policy on door-to-door soliciting after dark. 2. Councilman Smith discussed the press conference he attended along with Mayor Notte for Freedom Hill. He is confident with the higher grade management company that there would be better acts and less objection from the residents. Councilman Smith believes this would bring business and prosperity to Sterling Heights. Mayor Notte pointed out the sounds from Freedom Hill would never be alleviated all together, but the City would be meeting with Hillside Productions and try to overcome any glitches. 3. Mayor Notte announced Courtney Casey would be leaving the Source Newspaper and he wished her well in her future endeavors, stating she would be missed at the City Council meetings. CLOSED SESSION PERMITTED UNDER ACT 267 OF 1976 Moved by Ziarko, seconded by Notte, to recess to closed session to discuss strategy in connection with closed bargaining agreements, as an open discussion could have a detrimental financial effect on the City. Roll call vote: Yes: Ziarko, Notte, Schmidt, Smith, Koski, Romano. Absent: Taylor. The motion carried. The meeting was recessed at 9:12 p.m. ADJOURN Moved by Ziarko, seconded by Schmidt, to adjourn the meeting. Yes: Ziarko, Schmidt, Koski, Notte, Romano, Smith. Absent: Taylor. The motion carried. The meeting was adjourned at 9:34 p.m. WALTER C. BLESSED, City Clerk