City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL WEDNESDAY, JANUARY 2, 2013 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 and F be moved to become Consideration Items 5 and 6 respectively. Moved by Koski, seconded by Romano, to approve the Agenda as amended. Yes: All. The motion carried. PRESENTATION Fire Chief Chris Martin discussed the Fire Department’s live fire training and the need for proper fans to quickly remove the smoke and toxic gases from the burning structure while simultaneously advancing hose lines. The Fire Department had plans to purchase one Positive Pressure Fan in fiscal year 2012/13 and make several other purchases of these fans in subsequent years. He explained Grace Christian Church approached the Fire Department with an offer to purchase and donate fire fighting equipment. Not only did Grace Christian Church offer to purchase one Positive Pressure Fan at a cost of $1,871, a church member through his business donated matching funds which enabled the purchase of a second fan. As an added bonus, Apollo Fire Equipment did not charge Grace Christian Church shipping costs associated with the delivery of the two Positive Pressure Fans. Pastor Jerry addressed the Council and expressed his appreciation to the City of Sterling Heights and stated this is his way of giving back to the community. Regular City Council Meeting Wednesday, January 2, 2013 Page 2 Mayor Notte asked Pastor Jerry to provide the name of the person that made the donation so the City could acknowledge them with a letter of appreciation. Moved by Romano, seconded by Schmidt, RESOLVED, to acknowledge and accept the donation by Grace Christian Church of two Positive Pressure Fans to the Sterling Heights Fire Department. Yes: All. The motion carried. ORDINANCE ADOPTION 1. Moved by Schmidt, seconded by Romano, BE IT ORDAINED, to adopt the ordinance amending Chapter 2, Article V of the City Code for the purpose of implementing wage and benefit concessions by 41-A District Court personnel. CITY OF STERLING HEIGHTS MACOMB COUNTY, MICHIGAN ORDINANCE NO. 423 AN ORDINANCE TO AMEND CHAPTER 2, ARTICLE V OF THE CODE, ENTITLED “PERSONNEL POLICIES AND PROCEDURES FOR EMPLOYEES OF 41-A DISTRICT COURT,” BY AMENDING SECTION 2- 179 (COMPENSATORY TIME), SECTION 2-183 (MEDICAL AND HOSPITALIZATION BENEFITS), SECTION 2-186 (RETIREMENT PROGRAM), SECTION 2-187 (MEDICAL COVERAGE FOR RETIREES), AND SECTION 2-189 (LONGEVITY PAYMENTS), RENUMBERING AND AMENDING SECTION 2-190 AS SECTION 2-191(JUDGES), AND ADDING A NEW SECTION 2-190 (WAGES FOR REHIRES) THE CITY OF STERLING HEIGHTS ORDAINS: SECTION 1. Section 2-179 of Chapter 2 of the City Code shall be amended to read as follows: 2-179. COMPENSATORY TIME. There shall be compensatory time for the employees to be computed at one and one-half times the hours worked in excess of 35 hours in any particular week. For the magistrate position, only, compensatory time may be accumulated to a maximum of 210 hours with a buy-back maximum of 105 hours and time off maximum of 105 hours. For all other employees, compensatory time may be accumulated to a maximum of 210 hours with a buy-back maximum of 105 hours and time off maximum of 105 hours through June 30, 2013. After July 1, 2013, compensatory time may be accumulated to a maximum of 149 hours with a buy-back maximum of 44 hours and time off maximum of 105 hours. SECTION 2. Section 2-183 of Chapter 2 of the City Code shall be amended to read as follows: 2-183. MEDICAL AND HOSPITALIZATION BENEFITS. (A) Medical and Hospitalization Benefits through June 30, 2013. Regular City Council Meeting Wednesday, January 2, 2013 Page 3 (1) Medical and hospitalization benefits will be provided to the employees at no cost to the employee. The base coverage will be Community Blue PPO Plan 10 including employee deductibles of $250 per member/$500 per family and co-insurance of $500 per member/$1,000 per family for in-network services. The Master Medical annual deductible amount for Blue Cross Blue Shield traditional coverage is $100 for a single person and $200 for two persons and family coverage. (2) For all new employees hired after July 1, 2008, the base medical and hospitalization coverage shall be Blue Cross/Blue Shield Community Blue Plan 7 including employee deductibles of $500 per member/$1,000 per family and co-insurance of $1,000 per member/$2,000 per family for in-network services. (3) Prescription drug coverage will be provided to employees receiving medical and hospitalization coverage. The generic co-pay will be $5 and the brand name co-pay will be $20. The city will carve out the prescription drug benefit from the health plans available under this section to the extent allowed by the health plan offered and place the administration of the benefit with a Pharmacy Benefit Manager (PBM) selected by the city. The city reserves the right to change the PBM with 90 days’ written notice. (B) Medical and Hospitalization Benefits after July 1, 2013. The basic medical and hospitalization coverage for all employees as of July 1, 2013 shall be Blue Cross/Blue Shield Community Blue 4 modified. Employee will pay ten percent (10%) of the health insurance premium using the BCBS illustrated rate and prescription drug illustrative rates and not adjusted by the City. (C) Prescription drug coverage will be provided to employees receiving medical and hospitalization coverage. Prescription drug insurance will carry $15/$30/$50 co-pays with mandatory generic drug usage and step therapy. Administration of the prescription drug coverage will be performed by a Pharmacy Benefit Manager (PBM) selected by the City. The City reserves the right to change the PBM with 90 days’ written notice. The maximum City cost for the medical and prescription illustrative rates is the Hard Cap from Public Act 152 of 2011, or such other cost limitation elected annually by the City Council. Employee shall pay any premium costs in excess of the Hard Cap or such other cost limitation elected annually by the City Council. (D) The employer has a program to coordinate and to eliminate overlapping health care coverage. Each full-time employee or retiree who chooses not to join any employer sponsored health care plan and whose spouse or parent has coverage provided shall be paid $1,500 each year prorated for the period of time in which the spouse or parent has coverage. Payments will be made annually, in December, to each employee or retiree who has not been on any employee- sponsored health care program. Employees or retirees shall be required to show proof that a spouse or parent has health care coverage that includes the employee and retiree and their dependents before said employee will be declared eligible to receive the annual payment. (E) The City reserves the privilege to offer enrollment in alternative medical and hospitalization coverages to employees on a voluntary basis. Statutory reference: Publicly Funded Health Insurance Contribution Act, MCL §15.561 et seq. SECTION 3. Section 2-186 of Chapter 2 of the City Code shall be amended to read as follows: Regular City Council Meeting Wednesday, January 2, 2013 Page 4 2-186. RETIREMENT PROGRAM. A retirement program for the employees of the 41-A Judicial District Court, which has as its District Control Unit, the City of Sterling Heights, Michigan, was created and established on July 1, 1969. This retirement system was enacted to attract and retain competent employees to the 41- A District Court through a deferred benefit plan which permits the employees to participate in the plan by entering into an agreement with the employer, the City of Sterling Heights, whereby a portion of the employee's salary will be deferred for the purpose of providing other retirement benefits or death benefits in the event of death prior to retirement. The pension program for employees hired before July 1, 1996 shall remain as provided in the City Charter and code of ordinances, except as modified below: For service earned prior to July 1, 2013, the factor used to determine an employee's pension shall be 2.3% multiplied by the number of years of service, in turn, multiplied by the final average compensation. The factor shall be 2% times the number of years of service earned on and after July 1, 2013 times the final average compensation. Final average compensation shall be based on the best three years of the last ten years. All taxable income earned shall be used in computing the employee contribution and final average compensation and shall include income paid into any deferred compensation plan. Pension shall be fully vested after five years service. Employees shall be allowed the option of retiring after completion of years of service plus age totaling seventy-five (75) or more or after completion of 30 years at any age. The employee's contribution to the retirement system shall be 8% of their annual compensation. Effective July 1, 1996, all new court employees shall receive retirement benefits through a defined contribution pension plan established by the City of Sterling Heights. The City contribution to a new court employees defined contribution pension plan account shall be four percent (4%) of base salary. The new court employees will not be entitled to the retirement benefits provided pursuant to Chapter 41 of the Sterling Heights Code of Ordinances. The defined contribution plan benefits will be in lieu of all Sterling Heights Charter and/or ordinance pension entitlements. While the defined contribution plan benefits are mandatory for new hires, there may also be an option for existing employees who may choose such benefits in lieu of those provided by the Sterling Heights Charter or in the code of ordinances. SECTION 4. Section 2-187 of Chapter 2 of the City Code shall be amended to read as follows: 2-187. MEDICAL COVERAGE FOR RETIREES. Employees hired after July 1, 2012 shall not receive medical, hospitalization, and prescription coverage (collectively “retiree medical coverage”) upon retirement. For employees retiring prior to July 1, 2013, retiree medical coverage will be provided to retired employees/spouses equal to the medical coverage at the time of retirement; provided, however, that all employees hired between July 1, 2008 and June 30, 2012 shall be required to pay 50% of the illustrative rate for retiree medical coverage for which they are eligible upon retirement. If payment is not made by the fifteenth of the month retiree medical coverage shall be canceled effective the first of the following month. The spouse of a deceased retiree shall continue to receive medical coverage as long as the spouse continues to receive a pension and does not remarry. For employees retiring after July 1, 2013, retiree medical coverage provided to retired employees/spouses at the time of retirement will be subject to changes as determined by Regular City Council Meeting Wednesday, January 2, 2013 Page 5 amendments to the medical and hospitalization benefits provided to current employees; provided, however, that such changes in retirement shall be limited to two amendments to retiree medical coverage. In the event that either of the two post-retirement amendments results in no medical, hospitalization, and prescription coverages for current employees, the retiree’s retiree medical benefits will continue with the coverages applicable at the time the change to no medical benefits for current employees takes effect. Upon reaching age 65 or eligibility for Medicare, the retiree and spouse must apply for Medicare coverage. The court will provide complementary coverage with riders to provide a continuation of benefit level. In the event a retired employee or their spouse obtains employment and the subsequent employer provides hospitalization and medical insurance, they shall not be covered by the court’s hospitalization coverage for the duration of the employment. For the purposes of this section, the term RETIREE is defined as: (a) Any employee who retires by virtue of fulfilling both the age and service requirement for full retirement (for example, years of service plus age totaling seventy-five (75) or more, 30 years of service at any age); (b) Any of the preceding employees who retires as the result of a duty-connected disability; or (c) A District Court Judge who retires and is eligible for a full state judicial pension. SECTION 5. Section 2-189 of Chapter 2 of the City Code shall be amended to read as follows: 2-189. LONGEVITY PAYMENTS. (A) District Court Judges. (1) For the period July 1, 2011 through June 30, 2012, District Court Judges will receive longevity payments on the following basis: (a) 1% of base pay after two years of continuous service; (b) 2% of base pay after four years of continuous service; (c) 6% of base pay after 12 years of continuous service; (d) 8% of base pay after 18 years of continuous service. (2) After July 1, 2012, District Court Judges will receive longevity payments on the following basis: (a) 4% of base pay after 12 years of continuous service; (b) 6% of base pay after 18 years of continuous service. (B) Other employees. Effective July 1, 2012, all other employees will receive longevity payments on the following basis: (1) .67% of base pay after two years of continuous service; (2) 1.33% of base pay after five years of continuous service; (3) 2.67% of base pay after ten years of continuous service; (4) 4% of base pay after 15 years of continuous service; Regular City Council Meeting Wednesday, January 2, 2013 Page 6 (5) 5.34% of base pay after 20 years of continuous service; (6) 6.67% of base pay after 25 years of continuous service. Longevity pay shall be based upon the total number of continuous, completed full years as of the employee's anniversary date and shall be paid in July of each year following the anniversary date. Upon the death or retirement of an employee, the employee or the estate will be paid at a prorated amount of longevity. SECTION 6. Section 2-190 of Chapter 2 of the City Code shall be renumbered as Section 2-191 and amended to read as follows: 2-191. JUDGES. This article shall not be applicable to the judges, except for § 2-180, injury or illness arising out of and in the course of employment, § 2-181, injury or illness outside the scope of employment, § 2-182, life insurance, § 2-183, medical and hospitalization benefits, § 2-184, dental insurance, § 2-185, optical insurance, § 2-186, retirement program (as eligible), § 2-187, medical coverage for retirees and § 2-189, longevity payments. SECTION 7. A new Section 2-190 is added to Chapter 2 of the City Code to read as follows: 2-190. WAGES FOR REHIRES. (A) Notwithstanding City Code §41-30 or any other provision of the City Code, an employee who retires and is a participant in the General Employee Retirement System may be re-employed, after separation from employment for a minimum of 30 calendar days, in the same position with the 41A District Court on the following terms: (1) The salary paid to a retiree rehired pursuant to this section will be the equivalent of sixty percent (60%) of the base annual salary previously being earned at the time of retirement; provided, that the calculation of salary will be adjusted to match that provided to retired non-police and fire members of the MAPE Executive Group upon re-employment. (2) The retiree rehired pursuant to this section shall, at a minimum, work the court calendar and normal hours of work established for the 41A District Court. On the date of rehire, a re-employed retiree will be credited with two days of vacation for each full month of employment through June 30th. Annually on July 1st, the re-employed retiree will be allocated vacation days in a number equivalent to the number of days the retiree would have been allocated for the retiree’s next continuous year of service had the retiree not retired. Unused vacation days do not accrue and are lost if not utilized by June 30th annually. There is no payout of unused vacation time upon any separation from employment. Other than salary and vacation time, a retiree rehired pursuant to this section shall not receive any other wages or benefits provided to current employees pursuant to this chapter. The pension and retirement benefits of a retiree rehired pursuant to this section shall not be suspended during the term of re- employment. (3) The term of re-employment of a retiree is limited to two years unless extended in the discretion of the Chief Judge. SECTION 8. All other provisions of the Code of Ordinances not specifically amended shall remain in full force and effect. SECTION 9. This ordinance shall become effective immediately upon publication of a notice of adoption. Regular City Council Meeting Wednesday, January 2, 2013 Page 7 This ordinance was introduced at a regular meeting of the City Council of the City of Sterling Heights on the 18th day of December, 2012, and was duly adopted at a regular meeting of the City Council of the City of Sterling Heights on the 2nd day of January, 2013. WALTER C. BLESSED, City Clerk INTRODUCED: 12/18/12 ADOPTED: 01/02/13 PUBLISHED: 01/13/13 EFFECTIVE: 01/13/13 Yes: All. The motion carried. CONSENT AGENDA 2. Mr. Dennis White questioned the costs associated with Item E. Mr. Vanderpool explained the agreement with the Macomb County Animal Shelter and the pass along fees charged to the City. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda, as amended: A. To approve the minutes of the Regular Meeting of December 18, 2012, as presented. B. To approve payment of the bills as presented: General Fund - $846,156.88, Water & Sewer Fund - $59,619.57, Other Funds - $482,392.53, Total Checks - $1,388,168.98. C. Moved to Consideration Item 5. D. RESOLVED, to receive the report of the Purchasing Manager pursuant to City Code §2-221 regarding the emergency repair of a Flygt submersible pump by Kennedy Industries, Inc., 52900 Grand River, New Hudson, MI 48165, in the amount of $13,760.00. E. RESOLVED, to approve the Agreement for Macomb County Animal Shelter Services between the County of Macomb and City of Sterling Heights and authorize the City Manager to sign it on behalf of the City. F. Moved to Consideration Item 6. Yes: All. The motion carried. CONSIDERATION 3. Mr. Vanderpool made a presentation explaining the amendment to the Ethics Principles and Guidelines Resolution. He explained most Council members expressed concern that the text did not directly address the fundamental problem of undue influence and that it Regular City Council Meeting Wednesday, January 2, 2013 Page 8 needed to be straightforward and easy to understand and apply. Toward this objective, the proposed amendment to Ethics Principle No. 4B has been amended to read as follows: B. A public official should not appear before or have contact with a City board, commission, or committee for the purpose of influencing the outcome of a matter under consideration by threats, intimidation, or other improper exercise of the powers of public office. Mr. Bahorski added this amendment is a more direct approach. Mr. Mike Lombardi spoke in favor of the amendment, stating it is important and should be passed. Mr. Jeffrey Norgrove inquired whether members of City Council would still have the opportunity to appear before a board or commission if they had a concern and speak as a private citizen. Mr. Bahorski responded that was part of the change. Council members do not forfeit their right to appear before a board or commission, but they must be very careful not to exercise duress or cross the line. Moved by Ziarko, seconded by Schmidt, 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 the outcome of a matter under consideration by threats, intimidation, or other improper exercise of the powers of public office. Councilwoman Ziarko was very happy with the changes that were made to address the concerns of some of the board members. Councilman Taylor questioned the language in the amendment that uses the term “ public official” and the motion that states a Council member. He inquired whether this refers to only City Council or other public officials and even administration. Mr. Bahorski responded it is a broader definition and does go beyond just council members. Councilman Taylor is very comfortable with the new language. Regular City Council Meeting Wednesday, January 2, 2013 Page 9 Councilman Smith believes this amendment is a violation of the Open Meetings Act. He stated we are the elected government and we elect the committee. He is opposed to the amendment. Vote on proposed amendment to Ethics Principle No. 4B: Yes: Ziarko, Schmidt, Taylor, Koski, Notte, Romano. No: Smith. The motion carried. RESOLUTION A resolution of the City Council of the City of Sterling Heights to amend the resolution adopted by City Council on December 19, 1990 that established the ethical principles to be followed by all officers and employees, Board and Commission members and setting forth guidelines to use in compliance with the existing City ethics code. BE IT RESOLVED THAT; the City Council hereby adopts and directs compliance with the following PUBLIC SERVICE ETHICAL PRINCIPLES and establishes the following guidelines: I. PUBLIC OFFICE AS A PUBLIC TRUST Public servants should treat their office as a public trust, only using the powers and resources of public office to advance public interests, and not to attain personal benefits or pursue any other private interest incompatible with the public good. 1. PURSUIT OF PUBLIC INTERESTS In treating their office as a public trust, public servants, whatever their role, should diligently and in good faith pursue the public interest to the best of their ability and subordinate self-interest to the public good. 2. ENSURING PUBLIC RESPECT In treating their office as a public trust, public servants should act so as to ensure the reality and perception that government is conducted according to the highest principles of democracy with honesty, integrity and a concern for justice and is, therefore, worthy of respect, trust, and support. A. Avoiding impropriety – Public servants should maintain public trust in government by avoiding acts, which place personal or private interests above pursuit of the public interest. B. Avoiding appearances of impropriety – Public servants should avoid conduct, which tends to undermine public trust by creating in the minds of reasonable impartial observers the perception that government office has been used improperly. 3. FORMULATION OF PUBLIC POLICY Persons with the responsibility for making public policy and laws should place the public interest over all other considerations. A. Elected officials should make policy. In a representative democracy, public interest should be determined and translated into policies and programs by or under the direction of elected officials who are ultimately accountable to the public. Regular City Council Meeting Wednesday, January 2, 2013 Page 10 B. Dealing with conflicting loyalties – In pursuing the public interest, public servants should put loyalty to democratic principles and to the broadest public good above loyalty to political party, their constituencies and individuals. C. Ranking loyalty obligations – When allocating public funds and formulating general public policies, elected officials should evaluate information objectively and decide what is best for the public as a whole, not just a narrow constituency. D. Organizational vs. personal loyalties – Public servants with supervisory authority should safeguard and protect the public interest, the reputation of government and the integrity and efficiency of their department, even at the cost of injuring a superior, colleague, or friend. E. Protection of minority rights – It is in the overall public interest that the will of the majority is tempered by a commitment to consider and protect the rights and advance the interests of minorities especially those that are not sufficiently represented in the normal decision making process. 4. IMPLEMENTATION OF POLICY Public administrators and executives should interpret and implement policies and laws in good faith and energetically pursue the goals of policy and lawmakers. A. Subordination of personal views – Public servants charged with the administration of policies and laws should do so as equitable, efficiently, and economically as possible, regardless of their personal views. B. Dealing with policy disagreements – Public servants who find that their personal convictions are irreconcilably incompatible with lawful policies should openly state their conflict and, in some cases, withdraw from the administration of such policies. C. Whistle-blowing: disclosure of unlawful or improper policies or actions – Public servants who have a good faith belief that the public interest requires the disclosure of governmental policies or actions thought to be unlawful or improper should reveal their information to appropriate authorities. D. Leaking – Except in matters of great public importance where identifying oneself as the source of information would involve unreasonable personal risks, public servants should not secretly reveal confidential governmental matters or allege improprieties. 5. PERSONAL GAIN FROM THE PERFORMANCE OF PUBLIC DUTIES Except for official compensation, public servants should neither seek nor accept any form of payment, gratuity or other personal benefit relating to the performance of their responsibilities. A. Performance of duty – Public servants should neither seek nor accept any form of personal benefit for the performance of their duty to deal with a matter promptly, efficiently or fairly or for the exercise of appropriate but discretionary representational authority. B. Accessibility of elected officials – Elected officials should assure that constituents and others who may be affected by public policies have a fair and equal opportunity to express their concerns, grievances, and ideas without regard to their willingness or ability to provide personal benefits or political support to the official. C. Personal benefits should never appear to be necessary – Public servants should not engage in any conduct, which could create in the mind of a reasonable observer the belief that persons will receive better or different service if they provide personal benefits or political support to a government official. Regular City Council Meeting Wednesday, January 2, 2013 Page 11 6. USE OF PUBLIC EMPLOYEES FOR PERSONAL BENEFIT Public servants should not use public employees on government time for private benefit. A. Subordinate's responsibility to say no – Public employees should refuse to perform improper personal tasks on government time. 7. USE OF GOVERNMENT PROPERTY FOR PERSONAL BENEFIT A public servant should not use government property or facilities for private benefit. 8. USE OF TITLE OR PRESTIGE FOR PERSONAL BENEFIT Public servants should not use, nor allow others to use, the authority, title, or prestige of public office for the attainment of private financial, social or political benefits in any manner that is inconsistent with public interests. A. Use for commercial purposes – Public servants should not permit their names nor official titles to be used by a nonpublic enterprise in any manner, which would lead reasonable observers to believe that those who deal with the enterprise may receive special treatment or advantages as a result of a formal association with the public servant. B. Exploitive fees – The present or former holder of a high public office which carries with it substantial prestige should not appear to sell the stature of the office by accepting sums that create a general perception that the office has been exploited for private gain. C. Use for private advantage – Public servants should not use official letterhead or refer to their public position as a means of inducing or intimidating persons to resolve disputes more favorably, provide preferential treatment, or give free tickets, discounts, favors or other advantages. 9. USE OF PUBLIC POWERS FOR POLITICAL ADVANCE A public servant should not use the resources, prerogatives and powers of office primarily to advance political interests. A. Use of public employees – A public servant should not seek to use public employees, on government time, to assist in political party activities, campaigning, fund raising, or other partisan or personal political activities. B. Use of public facilities – A public servant should not conduct nor allow campaign and fundraising activities on government premises nor use government resources for these purposes. C. Use of public authority – A public servant should not use public authority primarily to achieve personal political advantage or favorable press coverage. D. Use of public meetings for political advance. A public servant should not use a public meeting or other City function as an opportunity to introduce or otherwise advance the candidacy of a candidate for political office. 10. USE OF CAMPAIGN FUNDS FOR PRIVATE BENEFIT Public servants who run for office should use campaign funds only for expenses directly relating to campaigning (e.g., salaries, consultant fees, travel, printing, media, polling, Regular City Council Meeting Wednesday, January 2, 2013 Page 12 communication with voters and constituents) and not for personal or other political purposes. A. Improper expenditures – Campaign funds should not be used to supplement personal income or enhance a personal life style. B. Loans – Candidates should not borrow from campaign funds nor loan them to any other person, whether or not interest is paid. C. Disclosure about the use of funds – Public servants who raise campaign funds with the intent or known possibility that they will be used for a purpose other than direct campaign expenses relating to a current election should disclose their intent to the donor in order to avoid any possibility of raising money under false pretenses. II. PRINCIPLES OF INDEPENDENT OBJECTIVE JUDGMENT Public servants should employ independent objective judgment in performing their duties, deciding all matters on the merits, free from conflicts of interest and both real and apparent improper influences. 1. CONFLICTS OF INTEREST Public servants should safeguard their ability to make independent, objective, fair and impartial judgments by scrupulously avoiding financial, social and political relationships and transactions, which may compromise or give the appearance of compromising their objectivity, independence or honesty. A. Disclose of financial conflicts of interest – Public servants subject to disclosure of financial interest requirements should comply with both the letter and spirit of the regulations and not seek to circumvent them by evasion strategies or legalisms. B. Avoidance of financial conflicts – Despite laws that permit financial conflicts, public servants should make all reasonable efforts to avoid transactions which may compromise or give the appearance of compromising their objectivity, independence or honesty. C. Benefits intended to influence – Public servants should not accept benefits of any sort under circumstances in which it could be reasonably inferred that the benefit was intended to influence them in the performance of their public responsibilities. D. Duty to report improper offers – When the possibility of improper motive requires refusal of a gratuity, the official should firmly warn the person about bribery laws and improper influence; if the attempt to unduly influence is clear, the matter should be reported to law enforcement authorities. E. Appearance of undue influence – Regardless of the actual intent of the provider or recipient, public servants should not accept benefits of any sort under circumstances, which would create in the mind of a reasonable observer the belief the benefit, may influence them in the performance of their public responsibilities. i. Earned income from persons directly affected by actions or decisions – Public servants should avoid engaging in financial relationships that might reasonably be construed to affect their judgment or actions, especially from lobbyists or other persons who are likely to be affected directly by their actions or decisions. ii. Gratuities from persons directly affected by actions or decisions – Public servants should refuse to accept any gratuities, which may reasonably be construed to affect their judgment or actions, especially from lobbyists or Regular City Council Meeting Wednesday, January 2, 2013 Page 13 other persons who are likely to be affected directly by their actions or decisions. iii. Campaign contributions from persons directly affected by decisions – Public servants should be cautious about accepting campaign contributions, which may reasonably be construed to affect their judgment or actions, especially from lobbyists or other persons who are likely to be affected by their decisions. iv. Personal relationships with persons directly affected by decisions – Public servants should be cautious about accepting campaign contributions, which may reasonably be construed to affect their judgment or actions, especially from lobbyists who are likely to be affected directly by their decisions. 2. RECUSAL AND DISQUALIFICATION Public servants should not take any public action under circumstances where, due to a conflict in interests, they are not certain that they can do so fairly and objectively. 3. BIAS OR FAVORITISM Public servants should exercise the powers and prerogatives of office fairly without prejudice or favoritism. It is improper to use public authority to reward relatives, friends or political supporters or to hinder or punish enemies and opponents. 4. INTERVENING ON BEHALF OF CONSTITUENTS AND FRIENDS OR FOR IMPROPER PURPOSES. Public officials should be extremely cautious about directly or indirectly intervening with normal decision making, investigative, or adjudicative processes of governmental bodies on behalf of constituents or friends since such intervention can threaten the ability of government administrators to exercise independent objective judgment on the merits. A. General rule – Generally, intervention on behalf of constituents or friends is proper only it if is strictly limited to assuring fairness of the procedures and the intervener consciously avoids seeking to unduly influence the decision making process. Those who intervene should firmly, explicitly and unambiguously convey their limited purpose to reduce the possibility of direct or indirect pressure on administrators, which could reasonably appear to influence the substantive decision. B. A public official should not appear before or have contact with a City board, commission, or committee for the purpose of influencing the outcome of a matter under consideration by threats, intimidation, or other improper exercise of the powers of public office. III. PRINCIPLE OF ACCOUNTABILITY Public servants should assure that government is conducted openly, efficiently, equitably and honorably in a manner that permits the citizenry to make informed judgments and hold government officials accountable. 1. OVERSIGHT Public servants should assure that those to whom they have delegated public power, including their staffs and administrative agencies, carry out their responsibilities efficiently, equitably and ethically. Regular City Council Meeting Wednesday, January 2, 2013 Page 14 2. OPENNESS Public servants should exercise the authority of their offices openly so that the public is informed about governmental decisions and the citizenry can hold them accountable for their actions. 3. DUTY TO IMPROVE THE SYSTEM Public servants, who believe that a law or policy is not achieving its intended purpose, is creating unintended harms, or is wasteful or inefficient, should take affirmative steps to improve procedures in a way that will increase the fairness and quality of government services and assure that policies are implemented equitably, efficiently, and economically. A. Making changes – Public servants should take whatever actions they can to correct problems, streamline procedures and improve services. Where desirable changes exceed authority, public servants should promptly and forcefully recommend reform to the appropriate person or body. B. Supervisor's duty – In order to encourage a broad sense of responsibility for both the results and methods of government action, supervisors should develop a working environment that fosters constructive criticism and creative problem solving. 4. SELF-POLICING Public servants should maintain the integrity and trustworthiness of government by taking whatever steps are necessary, including reporting improper conduct to appropriate authorities, to prevent the unlawful or unethical use of public position, authority or resources. IV. PRINCIPLE OF DEMOCRATIC LEADERSHIP Public servants should honor and respect the principles and spirit of representative democracy and set a positive example of good citizenship by scrupulously observing the letter and spirit of laws and rules. 1. OBEYING ALL LAWS Public servants have a special obligation to obey all laws and regulations. 2. ARTIFICES AND SCHEMES Public servants should not engage in artifices and schemes to exploit loopholes or ambiguities in the law in a way that undermines their spirit and purpose. 3. INTEGRITY OF THE PROCESS In using procedural rules, public servants should maintain the integrity, fairness and efficiency of the process by honoring the substance and spirit of the rules and by refraining from conduct which undermines the principles of representative democracy. 4. USE OF LEADERSHIP POWER Legislative leaders and committee chairs should use their leadership powers only in a manner consistent with representative democracy. 5. CIVIL DISOBEDIENCE In rare cases, a public servant may exercise the prerogative of conscientious objection by disobeying the law. In such cases, the illegal behavior should be open and the official should be willing to bear the appropriate legal and political consequences. V. PRINCIPLE OF RESPECTABILITY AND FITNESS FOR PUBLIC OFFICE Regular City Council Meeting Wednesday, January 2, 2013 Page 15 Public servants should safeguard public confidence in the integrity of government by being honest, fair, caring and respectful and by avoiding conduct creating the appearance of impropriety or which is otherwise unbefitting a public official. 1. FITNESS FOR PUBLIC OFFICE Public servants should conduct their professional and personal lives so as to reveal character traits, attitudes, and judgments that are worthy of honor and respect and demonstrate fitness for public office. A. Honesty – Public servants should be scrupulously honest, avoiding any form of lying, deception, deviousness, hypocrisy, and cheating in their professional and personal lives. B. Integrity – A public servant should reflect personal integrity in all matters, placing principle over expediency and demonstrating courage of convictions. C. Private personal conduct – Public servants should avoid engaging in any conduct, which is likely to bring discredit on themselves and the governmental bodies in which they serve. 2. CAMPAIGNING Those seeking public office should conduct their campaign in a way that aids the citizenry to make an informed choice on appropriate criteria and which casts credit on government and the election process. Moved by: Ziarko Seconded by: Schmidt Ayes: Ziarko, Schmidt, Koski, Notte, Romano, Taylor. Nays: Smith. This resolution was adopted by the Sterling Heights City Council at its January 2, 2013 regular City Council meeting. WALTER C. BLESSED, City Clerk 4. Mr. Vanderpool explained the wage and benefit concessions achieved through the new collective bargaining agreement between the City of Sterling Heights and the Sterling Heights Fire Fighters Association, Local 1557, IAFF. He thanked the fire fighters for their willingness to address the significant financial challenges facing the City. Moved by Romano, seconded by Ziarko, RESOLVED, to approve the collective bargaining agreement between the City of Sterling Heights and the Sterling Heights Fire Fighters Association, Local 1557, IAFF for the period of July 1, 2012 through June 30, 2015, and authorize the Mayor and City Clerk to sign all documents required in conjunction with this approval. Councilman Romano thanked Mr. Haase and his union members for coming to the table. Regular City Council Meeting Wednesday, January 2, 2013 Page 16 Councilwoman Ziarko is also pleased with the outcome and thanked the fire fighters union. Councilman Taylor stated this is the first fire contract he would be voting in favor of. He stated this is a very good deal and keeps the fire fighters paid relatively well and makes the concessions the City needs. Councilwoman Koski thanked the fire fighters for stepping up and reaching an agreement. She asked Chief Martin to explain some of the special activities the Fire Department is involved in and stated they do not only fight fires. Councilwoman Schmidt thanked the membership and stated the City would not be what it is without the employees and residents working together. Mayor Notte concurs with the comments made by his colleagues. Vote on motion to approve the collective bargaining agreement: Yes: All. The motion carried. 5. Item C from the Consent Agenda: Ms. Marrocco spoke against the Interlocal Agreement to establish the Southeast Michigan Regional Energy Office Community Alliance for the purpose of developing and operating a joint PACE Program. She stated it has not been implemented very well and she sees no necessity for it. Miss Denice Gerstenberg, City Development Manager, highlighted the program. Moved by Ziarko, seconded by Romano, RESOLVED, to adopt the resolution approving the Interlocal Agreement, as amended, establishing the Southeast Michigan Regional Energy Office Community Alliance for the purpose of developing and operating a joint PACE Program and authorize the Mayor and the City Clerk to execute all documents required in conjunction with this action. Councilman Smith stated since there is a long list of hoped-for benefits why don’t more communities take advantage of it? He inquired the necessity and whether we are overlapping committees. Councilman Smith questioned who wanted the City to join PACE, who would be the City’s representative, whether there have been any meetings so far, whether any money has been spent on PACE and whether there are any tangible achievements at this point. Regular City Council Meeting Wednesday, January 2, 2013 Page 17 Ms. Gerstenberg responded the PACE Program has yet to be established. Councilman Taylor questioned how a business owner would go about joining the PACE Program and whether there is any liability to the residents. Ms. Gerstenberg responded at this time there is no application process, but an application process would be put together and financing would be available. She pointed out there would not be any cost to the City of Sterling Heights. It is a program we would be involved in and businesses could participate in if they desired. Councilman Taylor questioned where the funding for the Community Alliance would come from. Ms. Gerstenberg responded the Community Alliance would be able to apply for grant funding, both public and private. They would have a relationship with the bank and look at bonding. It would be their debt and liability. Vote on resolution approving the Interlocal Agreement: Yes: Ziarko, Romano, Schmidt, Taylor, Koski, Notte. No: Smith. The motion carried. RESOLUTION WHEREAS, certain governmental units, listed on Schedule 1, have entered into an Interlocal Agreement creating the Southeast Michigan Regional Energy Office Community Alliance (“Community Alliance”). WHEREAS, the Community Alliance was created for the local governmental entities to serve their communities by offering additional opportunities for energy efficiency project funding and thus enjoy the environmental and economic benefits of such projects; and WHEREAS, a property assessed clean energy program in each local government would be less efficient and more expensive than a single program administered cooperatively by a number of local governments providing services to all local governments; and WHEREAS, The Urban Cooperation Act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, provides for the creation of an interlocal alliance to jointly exercise the powers, privilege, authority that the local governmental units share in common and each might exercise separately; and WHEREAS, The Property Assessed Clean Energy Act, P.A. 270 of 2010, MCL 460.931 to 460.949, authorizes local units of government to join with other local units of government, or with any person, to adopt property assessed clean energy programs and to create districts to promote the use of renewable energy systems and energy efficient improvements by owners of real property, and providing for the financing of same through voluntary property assessments and permitting the issuance of governmental bonds or notes to that end; and WHEREAS, the City of Sterling Heights is a Michigan municipal corporation and is authorized by Michigan law to enter into the Interlocal Agreement under both PA7 of 1967 and PA 270 of 2010; and Regular City Council Meeting Wednesday, January 2, 2013 Page 18 WHEREAS, the City Council of City of Sterling Heights approves of the action to enter into this Interlocal Agreement, and prior to such approval the City of Sterling Heights held a public hearing of which notice was provided pursuant to the Open Meetings Act, 267 PA 1976, MCL 15.261 to 15.275. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS; RESOLVED, that the Governing Body adopts the Interlocal Agreement attached hereto as Exhibit A and which is incorporated in this Resolution by reference thereto and agrees to join with other local governmental entities to become a party to the Interlocal Agreement under the terms of such Agreement. BE IT FURTHER RESOLVED, that the Governing Body agrees to and concurs in the appointment of those either being appointed, to be appointed or currently serving as members of the Community Alliance Executive Committee created under the Interlocal Agreement and recognizes those Executive Committee members and their successors as the appointees of the Community Alliance Board. BE IT FURTHER RESOLVED, that the members of the Governing Body and the City Manager or his designee, and each of them, be and the same are hereby authorized for and on behalf of the Governing Body to enter into and sign any and all documents which are necessary or advisable with respect to the foregoing Resolutions and to comply fully with the intent and purposes of the foregoing Resolutions. Specifically, the members of the Governing Body and the City Manager or his designee, and each of them, are authorized to take any actions required by Section 7.01 of the Interlocal Agreement or by the Community Alliance Board with regard to the addition of City of Sterling Heights as a party to the Interlocal Agreement. AYES: Ziarko, Romano, Koski, Notte, Schmidt, Taylor. NAYES: Smith. ABSTAINED: None. RESOLUTION DECLARED AND ADOPTED. STATE OF MICHIGAN ) SS). COUNTY OF MACOMB ) I, the undersigned, the duly qualified and acting City Clerk of the City of Sterling Heights, County of Macomb, State of Michigan, do certify that the foregoing is a true and complete copy of a resolution adopted by the City Council of the City of Sterling Heights at a regular meeting held on the 2nd day of January, 2013, the original of which resolution is on file in my office. IN WITNESS WHEREOF, I have set my official signature, this 2nd day of January, 2013. WALTER C. BLESSED, City Clerk 6. Item F from the Consent Agenda: Moved by Taylor, seconded by Ziarko, RESOLVED, to authorize an appeal of the determination by the State Tax Commission granting tax exemption certificates for air Regular City Council Meeting Wednesday, January 2, 2013 Page 19 and water pollution control facilities being installed at the Sterling Heights Assembly Plant. Councilman Taylor explained the State Tax Commission recently granted an exemption certificate to the Sterling Heights Assembly Plant for its role in building a new paint shop. He pointed out when this project came before the City Council they were discussing modernization of the facility and the addition of employees and more productivity. The majority of the City Council members were in favor of the tax abatement because they were going to be producing more cars in Sterling Heights. Now this plant is saying they didn’t build it to add more cars or add productivity, they wanted to cut down on the pollution from the other side of the building. That argument is being put forth now because they can qualify for certain abatements from the State Tax Commission. He stated on December 13, 2012, the State Tax Commission conducted a hearing on the application filed by Chrysler Group LLC for tax exemption certificates relating to the installation of air and water pollution control facilities at the new paint shop under construction at the Sterling Heights Assembly Plant. Based upon a review of the information presented by Chrysler Group LLC in support of the applications and the results of the December 13th hearing, the City Assessor and City Attorney are recommending that the City pursue an appeal of the STC’s determination granting tax exemption certificates for air and water pollution control facilities being installed at SHAP. The City Assessing Department determined the majority of the building is not being used for mitigating pollution, but for building cars and because of that, they would not qualify for 100% of this abatement. They would qualify for a lesser amount. That is the reason he made this motion so that the City could try and recoup some of that lost money that is going to Chrysler. Councilman Smith stated this paint shop was built by Volkswagon many years ago. Chrysler was able to clean up the paint shop, but it still doesn’t meet the clean air standards. He believes the City is out of line for challenging this. Councilman Romano made a point of order and pointed out the City is in litigation and Councilman Smith’s comments might prejudice the City’s position. Regular City Council Meeting Wednesday, January 2, 2013 Page 20 Mr. Bahorski pointed out the motion tonight has nothing to do with the air and water pollution regulations. It is a dispute over the allocation of costs. Councilman Smith wanted to continue his discussion. Mayor Notte recommended the City Council go in closed session to discuss this item. Moved by Ziarko, seconded by Schmidt, RESOLVED, that Council recess to closed session. Roll call vote: Yes: Ziarko, Schmidt, Taylor, Koski, Notte, Romano. No: Smith. The motion carried. The meeting was recessed at 8:31 p.m. Mayor Notte reconvened the meeting at 8:35 p.m. Moved by Romano, seconded by Ziarko, to call the question. Yes: All. The motion carried. Vote on motion to authorize an appeal of the determination by the State Tax Commission: Yes: Taylor, Ziarko, Koski, Notte, Romano, Schmidt. No: Smith. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Charles Jefferson – Van Dyke and Riverland property cleanup; Dispatchers and Councilman Taylor’s position on the issue; Councilman Taylor’s remarks on tax abatements. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL There was no report from Mr. Bahorski. Mr. Vanderpool gave an update on the recent snow emergency. UNFINISHED BUSINESS 1. Councilman Taylor responded to comments from Mr. Jefferson as it relates to the dispatchers and stated he stands by his vote and position on this issue. He stated saving money is a big part of this and he is convinced public safety would not be affected. Regular City Council Meeting Wednesday, January 2, 2013 Page 21 2. Councilman Taylor stated to Mr. Jefferson in regard to tax appeals, Sterling Heights, as a government, should not be in the business of just trying to bring in business. We, as a community and local government, have tools in our Economic Development toolbox that we can offer. If we have the tools available, we should use them to bring in business. He took exception to the derogatory comments made at the podium by Mr. Jefferson. 3. Councilman Romano stated in regard to the snow emergency, there are other ways to advertise a snow emergency and the City should utilize the Macomb Daily and email. 4. Councilwoman Ziarko questioned whether there was a change in the policy as it relates to the number of inches of snow on the ground before a snow emergency is called. Mr. Vanderpool responded it has not changed, but there are circumstances where the Public Works Director might determine with the temperatures expecting to rise, the snow would melt and there would be no need to need to call a snow emergency. He encouraged residents, if they notice a significant snowfall, they should check the City’s website. ADJOURN Moved by Ziarko, seconded by Schmidt, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 8:51 p.m. WALTER C. BLESSED, City Clerk