City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, FEBRUARY 19, 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 Mark Carufel, Interim 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 Vanderpool, City Manager; Jeffrey Bahorski, City Attorney; Mark Carufel, Interim City Clerk; Madeline L. Ranella, Recording Secretary. APPROVAL OF AGENDA Councilman Smith requested that Consent Agenda Item L be moved to become Consideration Item 6. Moved by Koski, seconded by Romano, to approve the Agenda as amended. Yes: All. The motion carried. REPORT FROM CITY MANAGER Mr. Vanderpool reported Waste Management is in the process of implementing the Curbside Recycling Service for 4,500 residents who have subscribed by January 18. The 96-gallon recycle carts will be distributed by the end of February. The City has been divided into two sections. Service will begin on March 1 for subscribers north of 17 Mile Road and March 8 for subscribers south of 17 Mile Road. Mr. Vanderpool reported the Macomb County Public Works Office is overseeing a contract to rehabilitate the sanitary sewer meter facility at the corner of Sorrento Boulevard and Dodge Park Road. The work is to begin early next month. The Office of engineering has met with the project engineers, the project manager and contractor to ensure the disturbance in the surrounding community is lessened as much as possible. He stated a letter would be sent to all residents in the surrounding area. The project is anticipated to end near the end of July. Regular City Council Meeting Tuesday, February 19, 2013 Page 2 Mr. Vanderpool updated the Council and residents on upcoming economic developments. He reported the Office of Planning has recently received site plans for improvements to the former Ping On Restaurant located at 42300 Van Dyke Avenue, just north of the roundabout. The owner recently received approval from the City’s Zoning Board of Appeals to convert the long closed restaurant into a banquet facility to be named the Venetian Grand Banquet Hall. The intent is to completely remodel the exterior elevation and roofing system, as well as add additional square footage intended for seating, a bridal party room, business offices and enlarged service areas. A covered limousine entrance and gazebo would be new features added to the front of the building. Landscaping, fencing and lighting would be upgraded as well. The Office of Planning expects that construction will commence and extend through the summer of this year. This proposal is just the latest in a number of redevelopment projects happening in the North Van Dyke corridor. Mr. Vanderpool reported on Velocity Jr., a Science, Technology, Engineering and Mathematics (STEM) partnership between Utica Community Schools and the City of Sterling Heights. Velocity Jr. is designed to create and sustain a workforce capable of filling current and future high tech job opportunities that will help Michigan’s economy grow. The program is a complement to the economic development efforts housed at the Velocity Collaboration Center in Sterling Heights, a new center for business incubation and economic development, targeting defense, homeland security and advanced manufacturing. Mr. Vanderpool reported the real estate foreclosures continue to decline in 2012. Sterling Heights reflects one of the lowest foreclosure rates in Macomb County and is below the county average when expressed in terms of foreclosures per 1,000 properties. The City’s unemployment rate (7.6%) continues to be significantly below the state, county and national rates. The City’s rate is also below the average of our comparable communities (8.03%). Mr. Vanderpool reported the City’s 23rd Annual Sterling Coffeehouse series, offering a variety of programs to satisfy the appetite of any music lover, begins Sunday, March 3, Regular City Council Meeting Tuesday, February 19, 2013 Page 3 2013. These concerts will continue every Sunday at 7:00 pm through March 24 at the Recreation Center in Dodge Park. ORDINANCE INTRODUCTION 1. Police Captain John Berg made a presentation on the implementation of an electronic reporting requirement for secondhand goods transactions within the City. He stated Leads Online has been chosen by the Police Department to provide its secondhand goods tracking service because they are located in the United States and their system has more accessibility and links to other services, including NCIC and E-Bay. He discussed the secondhand goods merchant registration requirements and $100.00 city registration fee. Moved by Romano, seconded by Schmidt, RESOLVED, to introduce an ordinance amending Chapter 12 of the City Code to implement electronic reporting requirements for secondhand goods transactions within the City. Councilman Romano expressed his approval with this new electronic reporting requirement, stating it is long overdue. He discussed the challenges an ordinance like this would face in the courts. He stated we all need this and it is a great idea. Councilwoman Schmidt questioned how this ordinance would apply to E-Bay stores. Captain Berg responded law enforcement officials would have a contract with the stores and have the ability to go into the stores and see the seller’s names and look at the registration as well. Councilwoman Schmidt questioned whether any person opening an E-Bay store would have to register and the Captain indicated yes if they are taking in used goods. Councilwoman Schmidt questioned the difference between used goods and pawnshops. Captain Berg responded pawnshops are licensed to give loans in lieu of collateral they take in. A secondhand dealer takes in secondhand merchandise. It is mostly for jewelry and electronics. Councilman Taylor asked Captain Berg to verify the cost to implement this process for each of the secondhand merchants is paid for through the drug forfeiture funds. Captain Berg confirmed it is a one-time annual cost for the agency, depending on the size of the agency and no matter how many merchants are on the system. Regular City Council Meeting Tuesday, February 19, 2013 Page 4 Councilwoman Ziarko questioned the number of shops in the City that are considered secondhand dealers or pawn shops. Captain Berg responded 35-40 right now. Councilwoman Ziarko questioned whether the ordinance would apply to new businesses and Captain Berg responded it is for all secondhand merchants. Councilwoman Koski questioned where the $100.00 registration fee goes and Captain Berg responded it goes to the City for their oversight. Councilwoman Koski asked the Captain to verify it would cost the City $9,500 annually, which is paid through the drug forfeiture funds and the City would collect the $100.00 fee every year. She stated this would be a tremendous tool for our police department. Councilman Smith agrees with and supports this program. He discussed the problems with catalytic converter thefts and hopes the scrap dealers would become suspicious if a person brought in a large number of them. Councilman Smith discussed one-day buying events and whether they would be included in this ordinance and Captain Berg indicated they would. Vote on motion to introduce the ordinance amending Chapter 12 of the City Code to implement electronic reporting requirements for secondhand goods transactions within the City: Yes: All. The motion carried. 2. Ms. Denice Gerstenberg, City Development Manager, made a presentation as it relates to the implementation of an exterior inspection program for non-homestead single-family residential properties. Moved by Ziarko, seconded by Romano, RESOLVED, to introduce an ordinance amending Chapter 11 of the City Code to implement an exterior inspection program for non-homestead single-family residential properties. Councilwoman Ziarko understands what this ordinance is doing and stated it is a good idea. Councilman Taylor questioned how the $125.00 fee would be collected. Ms. Gerstenberg responded they would notify homeowners that an inspector is coming out and telling them what the inspectors would be inspecting. Regular City Council Meeting Tuesday, February 19, 2013 Page 5 Councilman Taylor questioned the City’s recourse if a person refused to pay the fee. Ms. Gerstenberg responded it would be similar to the nuisance abatement process we currently use; it would go on their tax bill. Councilman Taylor questioned what would happen if a person refused to let the inspectors on their property. Ms. Gerstenberg responded the City could still treat it as an exterior maintenance inspection without their cooperation and do what they normally do in a regular code inspection. Councilman Taylor stated at the Strategic Planning meeting, she indicated 56% of the OBA cases are non-homestead. He inquired whether they could tell how many are rentals or vacant. Ms. Gerstenberg responded they would only find out if a contact were made with the property owner. Councilman Taylor questioned whether the vacant properties are more of a problem than the occupied non-homestead properties. Ms. Gerstenberg did not have that information. Councilman Taylor stated he would be more comfortable with an ordinance only for landlords or people using the property as income. He could justify assessing the fee in those cases. He wanted to find out how many of the houses are vacant and suggested the fee be higher for vacant properties. He hopes the Council would see that option at the second reading. Councilwoman Koski expressed the same concerns as Councilman Taylor on the rental or vacant properties. She suggested the City send out a letter to the property owners telling them the property would be inspected and listing the codes the City would be inspecting for. Councilman Smith stated this is a great idea and a good piece of work. He supports the ordinance amendment. He stated the City has the right and responsibility to investigate and inspect any property in the City and hold the owner responsible for the cost. Regular City Council Meeting Tuesday, February 19, 2013 Page 6 Vote on motion to introduce an ordinance amending Chapter 11 of the City Code to implement an exterior inspection program for non-homestead single-family residential properties: Yes: All. The motion carried. CONSENT AGENDA 3. Mrs. Susan Nairn, representing Bell Robin Neighborhood Improvement Association, 14 Mile and Ryan, spoke in support of the improvements to Beaver Creek Park (Item I.) Mr. Harry Marchlones spoke on Item G and in support of the improvements to Delia Park. Mr. John Hunt discussed Beaver Creek Park and the problems they are experiencing there. He suggested the City review access to the park. Mr. Tom Zager thanked Mr. Langlois for coming into their neighborhood and discussing the park. He hoped the Council would support the improvements. (Item I). Mr. Charles Jefferson wanted to see a drawing of the improvements to Beaver Creek Park and inquired where the funds were coming from. Mr. Langlois did not have a diagram of the improvements to the park at this time. He stated many are just improving what is already at the park and adding a few new amenities, such as a walkway around the park. Mr. George DiAngelo spoke in support of the improvements to the lighting at Delia Park. He stated if we have an opportunity to improve the lighting and we have a grant, we should take advantage of it. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda, as amended: A. To approve the minutes of the Regular Meeting of February 5, 2013, as presented. B. To approve payment of the bills as presented: General Fund - $377,344.07, Water & Sewer Fund - $968,361.43, Other Funds - $429,233.40, Total Checks - $1,774,938.90. C. RESOLVED, to approve final payment to Galui Construction Co., Inc., 33805 Harper Avenue, Clinton Township, MI 48036 in the amount of $22,623.95, plus Regular City Council Meeting Tuesday, February 19, 2013 Page 7 interest on retainage, for the 2011 Concrete Pavement Replacement Program, City Project #11-218. D. RESOLVED, to approve final payment to Asphalt Specialists, Inc., 1780 E. Highwood, Pontiac, MI 48340 in the amount of $5,756.38, plus interest on retainage, for the Gainsley Drive Asphalt Paving, Lori Drive to 19 Mile Road, City Project #12- 231. E. RESOLVED, to approve final payment to Hardrock Concrete, Inc., 38146 Abruzzi Drive, Westland, MI 48185 in the amount of $23,471.15 plus interest on retainage for the 2012 Concrete Pavement Replacement Program, City Project #12-228. F. RESOLVED, to approve final payment to CAASTI Contracting Services, Inc., 1912 W. Eight Mile Road, Detroit, MI 48219 in the amount of $8,279.70, plus interest on retainage, for the Utica and Van Dyke Corridor Improvement Project, City Project #10-206. G. RESOLVED, to adopt the resolution in support of the City of Sterling Heights’ application for a Michigan Department of Natural Resources Trust Fund Development Grant to fund the replacement of the lighting system at Joseph J. Delia, Jr. Major Park: ~ RESOLUTION ~ A resolution of the Sterling Heights City Council in support of an application by the City of Sterling Heights for a Michigan Department of Natural Resources Trust Fund Development Grant to fund the replacement of the lighting system at Joseph J. Delia Park, Jr. Major Park. Joseph J. Delia, Jr. Major Park affords residents and visitors numerous active and passive recreational opportunities, including but not limited to multi-seasonal baseball, softball and flag football league play on the four- diamond complex developed thirty-two years ago; The lighting system that serves the complex enhances its utility by facilitating use for a longer duration throughout the year and allowing for night games. This means greater opportunities for play by people of all ages; Unfortunately, these opportunities for play are in jeopardy because the park lighting system is, at thirty-two years old, nearing the end of its useful life. Because the cost to address these issues is significant and the remaining useful life is short, repairs to the lighting system are not a viable option; The City of Sterling Heights values its major and neighborhood parks, but funding for capital projects is extremely difficult due to the financial challenges facing all Michigan municipalities. Where needs exceed available resources, other funding sources are necessary to fill the gap;  Regular City Council Meeting Tuesday, February 19, 2013 Page 8 The City of Sterling Heights is making application to the Michigan Department of Natural Resources for a development grant in the amount of $300,000 to partially fund the anticipated cost of installing a new lighting system at Joseph J. Delia, Jr. Major Park; In support of this application and in satisfaction of the grant requirement for a local match, the City Council is committed to funding $150,000 in cash and/or in kind contributions, equivalent to fifty percent (50%) of the maximum grant amount; The City of Sterling Heights has once again partnered with the Sterling Heights Community Foundation, a IRC §501c(3) non-profit organization, to assist in fundraising for this critical recreational project to partially offset some of the City’s financial commitment; The replacement of the lighting system at Joseph J. Delia, Jr. Major Park represents a need - not a want - for the Sterling Heights community and the project is reflected in the Parks and Recreation Master Plan. The City Council submits this resolution of support and financial commitment in the sincere belief that recreational opportunity is an essential ingredient to this community’s quality of life. NOW, THEREFORE, BE IT RESOLVED, to support the application by the City of Sterling Heights for a Michigan Department of Natural Resources Trust Fund Development Grant to fund the replacement of the lighting system at Joseph J. Delia Park, Jr. Major Park and commit to the required local match in the amount of $150,000. This resolution was approved at the February 19, 2013 City Council Meeting by the Sterling Heights City Council. Moved by: Koski Seconded by: Romano AYES: Koski, Romano, Notte, Schmidt, Smith, Taylor, Ziarko. NAYS: None. ABSENT: None. IN WITNESS WHEREOF, I have set my official signature, this 19th day of February, 2013. MARK CARUFEL, City Clerk H. RESOLVED, to approve the commitment of the City of Sterling Heights’ allocation of 2011 and 2012 Federal HOME program funding to Macomb County Habitat for Humanity, 130 N. Groesbeck, Mount Clemens, MI 48043, in the cumulative amount of $428,850 and authorize the City Manager to sign all documents required in conjunction with this approval. I. RESOLVED, to approve an amendment to the City of Sterling Heights’ Fiscal Year 2012/13 Community Development Block Grant One Year Action Plan for the purpose of reallocating funding from the 2008 Home & Property Improvement Regular City Council Meeting Tuesday, February 19, 2013 Page 9 Program and program income in the amount of $173,500 to the Beaver Creek Park improvement project. J. RESOLVED, to award the bid for elevator maintenance services to Great Lakes Elevator, LLC, 530 Grand River, Williamston, MI 48895, for a three-year period at the monthly pricing bid. K. RESOLVED, to: (a) award the bid for upgrades to two outdoor warning sirens to West Shore Services, Inc., 6620 Lake Michigan Drive, PO Box 188, Allendale, MI 49401, at unit pricing bid; (b) approve a budget amendment to use U.S. Department of Homeland Security Grant funds, and increase revenue account #43501040-529000 (Federal Grant – Other) and grant expenditure account #43730315-981-001 (Capital Projects –Police Operations) in the amount of $33,700.00; and (c) authorize the Mayor and City Clerk to sign all documents required in conjunction with this purchase. L. Moved to Consideration Item 6. Yes: All. The motion carried. CONSIDERATION 4. Mr. Mark Vanderpool recommended the appointment of Mark Carufel as City Clerk effective February 20, 2013. He pointed out the length of time Mr. Carufel has been with the City and how he has distinguished himself over the course of his 22-year career with the City. He stated the City is fortunate to have Mr. Carufel’s dedication, ethics and skill set available to fill the critical Charter-required position of City Clerk. Moved by Schmidt, seconded by Notte, RESOLVED, to confirm the City Manager’s appointment of Mark Carufel as City Clerk effective February 20, 2013 in accordance with the Charter of the City of Sterling Heights. Councilwoman Schmidt has every confidence that Mr. Carufel will do an excellent job and stated she was impressed with his handling of the Hillside case. Councilman Romano stated 22 years with the City is impressive and he has big shoes to fill, but he is confident he will do an excellent job. Regular City Council Meeting Tuesday, February 19, 2013 Page 10 Councilwoman Ziarko agrees with her colleagues. She is impressed with the professionalism and stated he will do a great job. She believes this is a win-win for everyone. Yes: All. The motion carried. 5. Moved by Schmidt, seconded by Ziarko, RESOLVED, to appoint Stephan Bilan to the Board of Review to a term ending 06/30/14, subject to the appointee meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Councilman Taylor pointed out back in August the City Council changed the procedures for this Board and he believes we should be nominating Mr. Bilan at this meeting and appointing him at the first meeting in March. At the suggestion of Mr. Bahorski, Councilwoman Schmidt withdrew her motion and Councilwoman Ziarko withdrew her support. Moved by Schmidt, seconded by Ziarko, RESOLVED, to nominate Stephen Bilan to the Board of Review for consideration of an appointment at the first meeting in March. Yes: All. The motion carried. Moved by Koski, seconded by Notte, RESOLVED, to reappoint Michael Venetis to the Housing Commission to a term ending 12/31/17, subject to the appointee meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Mayor Notte asked Mr. Carufel to provide the City Council with the list of Boards that would require the two-step process when appointments come before the City Council in the future. Moved by Schmidt, seconded by Ziarko, RESOLVED, to appoint June Hughes to the Library Board of Trustees to a term ending 06/30/15, subject to the appointee meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Councilwoman Ziarko suggested future appointments to the Board of Review be placed on the agenda for the first meeting in February since we have the two-step process and the Board of Review starts in March. 6. Item L from the Consent Agenda: Regular City Council Meeting Tuesday, February 19, 2013 Page 11 Captain Berg provided an overview of this item. Moved by Taylor, seconded by Ziarko, RESOLVED, to: A. Reject the sole bid received from Hamilton Chevrolet for the purchase of Chevrolet police vehicles; B. Approve the purchase of two Chevrolet Tahoe police vehicles from Berger Chevrolet, 2525 28th SE, Grand Rapids, MI 49512, through the Oakland County cooperative bid at a total cost of $50,693.40; and C. Approve the purchase of three Chevrolet Caprice police vehicles from Berger Chevrolet, 2525 28th SE, Grand Rapids, MI 49512, through the State of Michigan MiDeal cooperative bid at a total cost of $81,583.50. Councilman Taylor questioned Captain John Berg about the need for the new police vehicles and the use of police vehicles in police work, mileage considerations and police vehicle life expectancy. Captain Berg responded that police vehicle wear and tear is different as the vehicles are used 24/7, spend a lot of time idling and they have to be able to accelerate and stop quickly and maintain their pursuit capabilities. The Police Department relies on the DPW mechanics to recommend which police vehicles are in need of replacement. He confirmed the vehicles are in need of replacement. Councilman Taylor stated the City has a professional police department that knows what they are doing and the police department needs vehicles to help keep the City safe. He is not prepared to cut police vehicles and he supports the motion. Councilwoman Ziarko pointed out the fact that once the police are finished with a vehicle, it goes to another department for their use. She agrees with the purchase of the police vehicles. Councilman Smith questioned the need for the new vehicles. He stated the City should not be in the business of testing police vehicles. He asked how the cars are delivered. He pointed out that based on the mileage as indicated in the back-up material, the Chevrolet Tahoe is more durable as a police vehicle. Regular City Council Meeting Tuesday, February 19, 2013 Page 12 Captain Berg responded that the dealer delivers the vehicles to the DPW. He stated that some vehicles have more time on the engine than other cars with higher mileage. He confirmed the department needs the requested vehicles. Councilman Smith asked Captain Berg if it would be worth it to lay off officers to buy these vehicles. Councilman Smith stated he wanted to amend the motion to buy two Chevrolet Tahoe police vehicles immediately and defer the other vehicles until July. Councilwoman Koski stated to Captain Berg if the police department stays on their budget plan, they would never be put in a situation where all of a sudden they would be minus twenty cars. She stated the purpose of trying different vehicles is because Ford is not making Crown Victoria’s any longer and there are different vehicles geared toward police patrol. Our Police Department would be testing the vehicles to see which ones suit our department the best, which ones our mechanics can work on the best, and see what Sterling Heights wants as a Police Department. Captain Berg stated that every year the department analyzes the entire police vehicle fleet based upon vehicle condition and age and they determine the departments future needs based upon how the fleet is aging. The proposed vehicles are in the Police Department’s budget and are to be used as police vehicles doing police work over an extended period of time. At the end of the review period, a decision will be made as to a standardized sedan for the police department. Councilwoman Koski pointed out the Chevrolet Tahoe police vehicles are not really used only for patrol, but they have specific duties such as evidence techs and K-9 units. She stated this was previously budgeted, pre-planned, and we are just acknowledging the purchase at this time. Vote on motion: Yes: Taylor, Ziarko, Koski, Notte, Schmidt, Romano. No: Smith. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Harry Marchlones – Hazards of police work, public safety millage cost, options if millage fails. Mr. George Hamzik – Against the purchase of police vehicles; Public safety millage. Regular City Council Meeting Tuesday, February 19, 2013 Page 13 Mr. Charles Jefferson – Marked police vehicles; Police and fire millage; Citizen participation at City Council meetings. Mr. Joel Thomas – Campaign for Liberty and making sure the City Council doesn’t do anything that is unconstitutional; Favors millage for police and fire. Mr. Jeffrey Norgrove – Possibility of opting out of taxes on Cobo Hall, SMART buses and the Detroit Art Institute. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Bahorski responded to the comment from Mr. Norgrove and pointed out the taxes on the SMART buses and art institute are millages paid by property owners. There is not much the City can do. Mr. Vanderpool provided a point of clarification as it relates the police officers and fire fighters concessions. He indicated the City has new collective bargaining agreements with both of the unions and we have the equivalent of savings with those two groups. He stated all bargaining units have now stepped up to the plate and agreed to similar concessions across the board. UNFINISHED BUSINESS/NEW BUSINESS 1. Councilman Romano commended Mr. Joel Thomas for coming before the City Council and pointed out the fact that he walks from City Hall to Van Dyke and Utica Road. He stated we need a lot more young people coming down and expressing their views. 2. Councilman Smith discussed the rising stock market and the fact that it is less than a percentage point of its all time high. He stated could not blame the City’s woes on the stock market. 3. Councilman Smith stated to the resident that asked about the millage figures, we probably wouldn’t find that out until it was closer to the filing deadline for city council when the budget is being discussed. Councilman Smith stated police and fire are not equal and he opposes a millage increase for police and fire, but stated it would be less unacceptable if we did a general millage. 4. Councilman Smith stated in regard to the personal property taxes and the assumption that it would be a loss of revenue, it might be and it might not be, it might bring Regular City Council Meeting Tuesday, February 19, 2013 Page 14 business and industry into the state and bring jobs, reduce unemployment and stimulate the economy. 5. Councilman Smith also thanked Joel Thomas for coming to tonight’s meeting. 6. Councilman Taylor agreed with Councilman Smith there is no number for the tax increase at this time. If this is an issue, he will make sure the residents have as much time as necessary to make an informed decision and have all information available to make that decision and layout what is at stake. 7. Councilman Taylor responded to Mr. Hamzik about his comment as it relates to laying off command officers and letting this be part of the County and just retaining patrol officers in the City. He stated we could not layoff command officers until we finish laying off every patrol officer. 8. Councilman Taylor stated in response to the police vehicles, he trusts the judgment of the Police Department, they are not just shuffling through vehicles because they are tired of them. The police officers want reliable vehicles for their safety and the safety of the residents. 9. Councilman Taylor thanked Mr. Joel Thomas for coming here this evening and told him to keep up the good work. 10. Mayor Notte stated in regard to the public safety millage, the City Council would be preparing for and discussing the budget during the month of April and adopting it at the first meeting in May. He believes the City Council will talk seriously about the millage after the budget is adopted. ADJOURN Moved by Ziarko, seconded by Schmidt, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 9:41 p.m. MARK CARUFEL, City Clerk