City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, MARCH 5, 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, 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, City Clerk; Madeline L. Ranella, Recording Secretary. APPROVAL OF AGENDA Moved by Koski, seconded by Romano, to approve the Agenda as presented. Yes: All. The motion carried. REPORT FROM CITY MANAGER Mr. Vanderpool reported the Macomb-OU Incubator was recently awarded a $776,000 grant from the Defense Advanced Research Projects Agency (DARPA) to support research and development, spur new job creation and assist business innovation. The incubator was chosen because of its contacts with the defense industry in Macomb County and its strong ties to other sectors including manufacturing, electronics, life sciences and information technology. To date, the incubator has helped businesses secure $3.2 million capital that helps pay for a variety of needs, including certifications that are essential to conduct business in the state. The grant funds provide an opportunity for the incubator to expand the high-tech and defense businesses within our community. Mr. Vanderpool was pleased to announce the incubator is working on finalizing another grant with the Michigan Economic Development Corporation in the amount of $500,000. Mr. Vanderpool reported on Thursday, March 7 at 7 pm, there would be a Resume Writing Workshop at the Sterling Heights Public Library. Participants in this interactive workshop would be given tips on creating a more effective resume, including the do’s and don’ts of resume writing. Regular City Council Meeting Tuesday, March 5, 2013 Page 2 He also reported on Thursday, March 14 at 7 pm, there would be an Interview Workshop held at the Sterling Heights Public Library to give participants a step-by-step guide on how to approach a job interview. Mr. Vanderpool updated the Council and residents on the Curbside Recycling Program, which began last Friday. Residents north of 17 Mile Road were picked up last Friday and residents south of 17 Mile Road would be picked up this Friday. He stated the first collection went quite well, although there were a few missed stops that were picked up on Saturday. PUBLIC HEARING 1. Mr. Brent Bashaw, City Engineer, made a presentation as it relates to the proposed Gardner Street Asphalt Paving Special Assessment District AP-12-01. He pointed out two written objection letters received from 4261 and 4425 Gardner Street. Mayor Notte opened the public hearing to the audience. The following residents spoke against the asphalt paving: Ms. Linda Vielhaber of 4353 Gardner Mrs. Marie Anderson, 4520 Gardner Mrs. Helena Cox, 4318 Gardner Mrs. Norine Nichols, 4425 Gardner Mr. Terry Steinhour, 4414 Gardner Mr. Justin Soupi (both for and against). The following residents spoke in favor of the asphalt paving: Mr. Ron Typinski, 39618 Baker (Corner of Gardner and Baker) Mr. James Roelandt, 4250 Gardner Mr. Dennis Polansky, 4393 Gardner Mr. Dennis Gross, 4064 Gardner Mr. Richard Belotti, 4454 Gardner Mr. Greg Watt, 4424 Gardner Mr. Dave Buice, 4305 Gardner Mayor Notte closed the public hearing. Regular City Council Meeting Tuesday, March 5, 2013 Page 3 Moved by Ziarko, seconded by Notte, RESOLVED, to adopt the resolution determining to make improvements – Gardner Street Asphalt Paving Special Assessment District, AP- 12-01. RESOLUTION DETERMINING TO MAKE IMPROVEMENTS Gardner Street Special Assessment District Resolution made and adopted at a regular meeting of the Council of the City of Sterling Heights, Macomb County, Michigan, held at the City Offices on the 5th day of March, 2013 at 7:30 p.m., Eastern Time. Members Present: Ziarko, Notte, Koski, Romano, Schmidt, Smith, Taylor. Members Absent: None. The following preamble and resolution was offered by Member Ziarko and supported by Member Notte: WHEREAS, this City Council, pursuant to Chapter 47 of the City Code of Ordinances (the "Code") tentatively declared its intention to undertake certain public improvements in the City, as more particularly described in Exhibit A hereto; and WHEREAS, the City Council has caused to be prepared by the City Engineer plans and the information concerning the proposed public improvements required by the Code which plans and information have been filed with the City Clerk together with the City Engineer's recommendations concerning the proposed improvements; and WHEREAS, after due and legal notice, the City Council has met on March 5, 2013 and heard all persons affected by the proposed public improvement; and WHEREAS, cost estimates, as prepared by the City Engineer along with proof of notice of the March 5, 2013 public hearing have been made available for inspection at said public hearing. NOW, THEREFORE, BE IT RESOLVED THAT: 1. The City Council hereby determines that the public improvements described in Exhibit A attached hereto and made a part hereof are necessary for the health, safety and welfare of the City and that said public improvements shall be made and completed pursuant to the Code. Regular City Council Meeting Tuesday, March 5, 2013 Page 4 2. The City Council hereby approves the plans and estimate of cost for the public improvements in the total sum of $315,000.00. Of the aforesaid total cost of the project, the sum of $261,000.00 will be spread against the hereinafter named special assessment district consisting of property especially benefited by the improvements in proportion to the benefits derived or to be derived and the total sum of $54,000.00 shall be a general obligation of the City. 3. The City Council finally determines that said special assessment district shall consist of all of the lots and parcels of land described in Exhibit B attached hereto and that the existence of said special assessment district shall be maintained until all special assessments payable on the roll hereinafter described have been paid. Said special assessments shall be payable in fifteen (15) annual installments with interest at the rate equivalent to the prime rate plus one (1%) percent per annum, not to exceed six (6%) percent per annum. 4. The City Assessor be and is hereby directed to make a special assessment roll in which shall be described all the parcels of land to be assessed as above set forth, with the names of the owners thereof, if known, and the total amount to be assessed against each parcel of land, which amount shall be such relative portion of the whole sum to be levied against all parcels of land in the assessment district as the benefit to such parcel of land bears to the total benefit of all parcels of land in the special assessment district. There shall also be entered upon such roll the amount, which has been assessed to the City At Large, if any. 5. When the City Assessor shall have completed the special assessment roll, he shall affix thereto a certificate stating that said roll was made pursuant to a resolution of the City Council adopted on the date of adoption of this resolution, and that in making the assessment roll, the City Assessor has, according to his best judgment, conformed in all respects to the directions contained in said resolution, the City Charter, and the Code, and the City Assessor shall then report the special assessment roll, with the certificate attached thereto, to this Council. 6. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and they hereby are rescinded. Regular City Council Meeting Tuesday, March 5, 2013 Page 5 AYES: Ziarko, Notte, Koski, Schmidt. NAYS: Romano, Smith, Taylor. ABSENT: None. Resolution declared and adopted. CERTIFICATION I hereby certify that the foregoing is a true and complete copy of a Resolution adopted by City Council of the City of Sterling Heights, County of Macomb, State of Michigan at a Regular Meeting held on the 5th day of March, 2013 and that said meeting was conducted and public notice of said meeting was given pursuant to and in full compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were kept and will be or have been made available as required by said Act. MARK CARUFEL, City Clerk EXHIBIT A Gardner West Drive Asphalt Paving ITEM DESCRIPTION ESTIMATED UNIT UNIT AMOUNT QUANTITY PRICE Section I - Asphalt Paving 1 . Bituminous Wearing Course 400 tons $68.00 $27,200.00 MDOT 1100T (1-1/2") 2 . Bituminous Leveling Course 800 tons $69.00 $55,200.00 MDOT 3C (3") 3 . Prime Coat (MC-30) 1400 gal. $4.00 $5,600.00 4 . MDOT 21AA Limestone Aggregate For 600 tons $23.00 $13,800.00 Road Base and Shoulder 5 . Salvaged Road Gravel For Road 600 tons $18.00 $10,800.00 Base and Shoulder 6 . Earth Excavation 650 c.y. $15.00 $9,750.00 7 . Undercut 500 c.y. $15.00 $7,500.00 8 . Fill Under Pavement (C.I.P.) 250 c.y. $16.00 $4,000.00 MDOT 21 AA Aggregate 9 . Fill Under Pavement (C.I.P.) 250 c.y. $11.00 $2,750.00 Salvaged Road Gravel Aggregate 10 . Remove Ex. Drive Approach / Drive 950 s.y. $10.00 $9,500.00 (Concrete/Asphalt) 11 . 6" Concrete Drive Approach 2250 s.f. $3.97 $8,932.50 12 . 4" Concrete (Drive and Sidewalk) 100 s,f. $3.50 $350.00 13 . Asphalt Drive/Approach 6200 sf $3.60 $22,320.00 MDOT 1100T & 1100L (4") 14 . Full Depth Sawcut (Vertical) 60 l.f. $5.00 $300.00 15 Pavement Removal 15 s.y. $10.00 $150.00 16 . 4" Mountable Concrete Curb and Gutter 50 lf $25.00 $1,250.00 Regular City Council Meeting Tuesday, March 5, 2013 Page 6 17 . 2' Dia. Field Inlet 3 ea. $1,500.00 $4,500.00 18 . Adjust Ex. Structure 2 ea. $350.00 $700.00 19 . Reconstruct Ex. Structure 4 v.f. $400.00 $1,600.00 20 . Remove Ex. Culvert 880 l.f. $6.50 $5,720.00 21 . 12" C.M.P. (16GA) 708 l.f. $27.50 $19,470.00 22 . 12" Flared End Section (for CMP) 54 ea. $105.00 $5,670.00 w/ Animal Guard 23 . 8" Flared End Section (for PVC) 2 ea $50.00 $100.00 24 . 8" PVC Schedule 40 Storm Sewer 10 l.f $25.00 $250.00 25 . 12" Storm Sewer, Reinforced Concrete 42 lf $50.00 $2,100.00 Pipe C-76 CL IV 26 . 12" Flared End Section (for CMP) 4 ea. $105.00 $420.00 w/ Animal Guard 27 . Relocate and Regrade Ex. Ditch 1750 l.f. $7.50 $13,125.00 28 . Calcium Chloride for Dust Control 2000 gal. $0.75 $1,500.00 29 . Restoration - Sod on 3" Topsoil 2700 s.y. $6.50 $17,550.00 30 . Restoration - 3" Topsoil 700 s.y. $4.50 $3,150.00 Fertilizer, Seed and Mulch 31 . Replace Ex. Sprinkler System Line 50 L.F. $6.00 $300.00 3/4" Poly Pipe 1" Poly Pipe 50 L.F. $7.00 $350.00 Spray Head 10 EA $30.00 $300.00 Rotary Head 10 EA $30.00 $300.00 32 . Soil Erosion & Sedimentation Control 1 l.s. $5,000.00 $5,000.00 and Clean-up 33 . Color Audio-Video Recording of Project 1 l.s. $2,500.00 $2,500.00 Area 34 . Traffic Maintenance 1 l.s. $7,500.00 $7,500.00 Subtotal - Section I $271,507.50 Engineering & Contingencies (16%) $43,441.20 Total - Section I $314,948.70 Rounded Estimate $315,000.00 EXHIBIT B Proprrty Address Parcel No. 1. 39620 Ryan Road 10-17-301-008 2. 4121 Gardner 10-17-301-011 3. 4131 Gardner 10-17-301-012 4. 4261 Gardner 10-17-301-024 5. 4425 Gardner 10-17-301-026 6. 4353 Gardner 10-17-301-027 7. 4393 Gardner 10-17-301-028 8. 4409 Gardner 10-17-301-029 9. 4305 Gardner 10-17-301-031 Regular City Council Meeting Tuesday, March 5, 2013 Page 7 10. 4337 Gardner 10-17-301-032 11. 4130 Gardner 10-17-302-004 12. 4154 Gardner 10-17-302-005 13. 4212 Gardner 1 0-17-302-006 14. 4250 Gardner 10-17-302-007 15. 4280 Gardner 10-17-302-008 16. 4318 Gardner 10-17-302-009 17. 4356 Gardner 10-17-302-010 18. 4050 Gardner 10-17-302-015 19. 4064 Gardner 10-17-302-016 20. 4110 Gardner 10-17-302-017 21. 4124 Gardner 10-17-302-018 22. 4414 Gardner 10-17-302-020 23. 4424 Gardner 10-17-302-021 24. 39617 Baker Drive 10-17-304-026 25. 39617 Baker Drive 10-17-305-017 26. 4455 Gardner 1 0-17-326-003 27. 4507 Gardner 10-17-326-004 28. 4454 Gardner 10-17-327-006 29. 4520 Gardner 10-17-327-007 Mayor Notte pointed out this issue has been before the City Council since 2008 and it’s a tough decision for the Council to make. He understands both sides of the issue, but stated this is a democratic process and they have to respect the majority of people are in favor of it. Mayor Notte reminded the residents they have to think about the health and welfare of the people living on gravel roads and it is the City’s policy is to have all gravel roads paved. He stated we should move forward and pave the road, as the people will benefit down the line. Councilwoman Ziarko pointed out there are several gravel roads in the City, but the only one that keeps coming back to the City Council is Gardner Street. She questioned whether the tax assessment would be a deduction on a person’s income taxes. Mr. Bahorski responded he didn’t know for sure, but stated it’s billed on the real property taxes. He advised he would need to get back with City Council on this issue. Councilwoman Ziarko questioned whether improving the road would increase the value of the homes. Mr. Vanderpool responded it’s hard to say definitively the amount that would be increased through the assessment. The way that property value assessments are determined is by sales and it is conceivable that homes on the street would be more desirable and sales activity would pick up and values might potentially increase. Regular City Council Meeting Tuesday, March 5, 2013 Page 8 Councilwoman Ziarko agrees with Mayor Notte that the majority of the people on Gardner Street are in favor of the paving. She wants to see some kind of compromise with the residents that say they would have a hard time paying for this. Councilwoman Ziarko questioned whether there would be an actual lien on the property and if it had to be paid off before the home could be sold. She inquired the possibility of extending the time for paying the special assessment to reduce the actual cost per parcel. Mr. Bahorski responded it is permissible under the ordinance to increase the number of installments up to 30. As far as the sale of the home, he doesn’t believe the special assessment would have to be paid immediately. He stated it could be a negotiation between the buyer and the seller as to whether they want to pay it off or it could continue on with the property, however it is a lien on the property. Councilwoman Ziarko questioned the present cost for maintaining the road. Mr. Bashaw responded the estimated gravel maintenance over the 15-year period is $21,450 or approximately $1,430 annually. Councilwoman Ziarko questioned the man-hours involved in this process after the petition was received. Mr. Bashaw responded they have spent in the neighborhood of 250 hours since receipt of the petition and working on this special assessment process. Councilwoman Ziarko pointed out the residents are spending money on the road and not satisfied with it. She stated she was in favor of the road paving years ago because the goal is to have all City streets paved. Mayor Notte asked for a response to a resident’s question about future maintenance on the improved road. Mr. Vanderpool responded the City is responsible for any future maintenance on the road. Mr. Vanderpool stated to the concern about the hardship, there is a provision in the City ordinance that provides for hardship cases. If an individual’s income falls below a certain threshold, they may qualify and there is no payment required until their situation changed or the property was sold. Regular City Council Meeting Tuesday, March 5, 2013 Page 9 Councilwoman Schmidt questioned whether the interest would be a fixed rate or a variable and Mr. Bashaw responded it would be a fixed rate. Councilwoman Schmidt asked Mr. Bashaw to confirm that a person could pay off their assessment earlier than the duration of the special assessment and not incur the entire amount of interest. Mr. Bashaw agreed. Councilwoman Schmidt pointed out she has not made a decision on this item yet and would listen to her colleague’s comments and then vote her conscience. She expressed concern with neighbor against neighbor and residents against Council. Councilwoman Schmidt would like to see an increase in the years to give some relief to the people if this motion passes. Councilman Taylor stated the assessment is not tax deductible. Property taxes are only tax deductible to the extent that the entire taxing jurisdiction pays the same amount on an ad valorem basis. The interest also is not tax deductible. He stated he would be voting no on this motion because it is a heavy burden on people that don’t want the paving. He cannot justify sticking someone with a bill over $10,000 for something they don’t want or can’t afford. He questioned how it would work for a resident that says they can’t pay and would like to avail themselves to the procedure of having a lien placed on their house. Mr. Bahorski responded it is provided for under the special assessment and it requires the City Attorney to prepare a document that would be recorded in the chain of title to the property. It creates a lien on the property and as long as the hardship continues, there would be no payment required. Councilman Taylor questioned whether the City makes the determination that the circumstances have changed or if the resident must notify the City that they can now pay. Mr. Bahorski responded that procedure is something they could put right in the document and explain how it would work. They could provide some level of protection right in the document. Councilman Taylor stated if this motion passes, he would hope there would be some consideration to stretching out the payment program. He also hopes that Council would give homeowners that cannot afford to pay this as much protection as possible, if it passes. Regular City Council Meeting Tuesday, March 5, 2013 Page 10 Mr. Bahorski stated he had an opportunity to review Section 47.24 that states the lien shall also be enforceable in the event in the opinion of the City Assessor, upon confirmation by the City Council, such condition of poverty ceases to exist. The City Assessor would do the follow-up and then it would come to City Council to confirm. Councilman Smith spoke against the special assessment and stated it‘s not fair to the people that don’t want it, and should not be imposed on even one person against their will. Councilwoman Koski questioned how the assessor would determine whether a person is able to pay the special assessment. Mr. Bahorski responded they had some discussion with the City Assessor and the idea was to follow the normal guidelines for property tax hardships. Councilwoman Koski stated this is the third time the City Council has discussed this street. Tonight is about the majority and she believes the majority should be given the opportunity to have the street paved. Councilman Romano agreed with the speaker who is both for and against the project. He stated he is 100% for it and 100% against it. Councilman Romano discussed the dust that people have to breathe in the summer time and the fact that the City wants all the City streets paved. He agrees with people at the retirement age that they don’t want a lien on their property. He pointed out the hardship guidelines and how involved they would be. Councilman Romano asked Mr. Bashaw to explain the type of gravel being used on the road. Mr. Sal Conigliaro, Public Works Director, explained the different type of gravel they used and stated it is a better grade of gravel. Their future goal is to replace all the old gravel roads with this new gravel. Councilman Romano stated he would vote no on this special assessment. Councilwoman Schmidt questioned whether the maker of the motion would be willing to change the duration of the special assessment. Mr. Bahorski recommended the motion on the floor be amended to amend paragraph 3 to provide for installment payments of so many years. Regular City Council Meeting Tuesday, March 5, 2013 Page 11 Moved by Schmidt, seconded by Ziarko, RESOLVED, to amend Paragraph 3 of the resolution to reflect a payment installment times 25. Councilwoman Schmidt stated she wants to increase the years so it makes the payment smaller and offers some relief to the residents. Councilman Taylor questioned the consequences if a resident avails him or herself to the installment option and then refuses to make the payments. Mr. Bahorski responded if it is on the City’s tax rolls, it is the responsibility of the City to collect it. Councilman Taylor stated he would vote in favor of the motion because he wants people to have as much time as possible to pay this back. Councilman Smith spoke in opposition to the motion, stating he sees no advantage to it and it would not lower the payment that much. Vote on motion to increase the assessment from 15 to 25 years: Yes: Schmidt, Ziarko, Koski, Notte, Romano, Taylor. No: Smith. The motion carried. Roll call vote on main motion with the amendment: Moved by Ziarko, seconded by Notte, RESOLVED, to adopt the resolution determining to make improvements – Gardner Street Asphalt Paving Special Assessment District, AP- 12-01, as amended. Yes: Ziarko, Notte, Koski, Schmidt. No: Romano, Smith, Taylor. The motion carried. Mayor Notte called a recess at 9:07 p.m. Mayor Notte reconvened the meeting at 9:15 p.m. ORDINANCE INTRODUCTION 2. Mr. Don Mende, City Planner, made a presentation as it relates to the regulation of signs and pointed out the three areas within Section 28.13 that are identified as being in need of amendment: Setbacks, Property Owner Consent and Size Limitations. Moved by Taylor, seconded by Notte, RESOLVED, to introduce an ordinance amending Article 28, Section 28.13 of Zoning Ordinance No. 278 to revise the regulations Regular City Council Meeting Tuesday, March 5, 2013 Page 12 governing setback, number and square footage and consent of owners for placement of signs, Case No. Z-1125. Councilman Taylor stated this has been a pet project of his for quite some time. He felt the sign ordinance was too restrictive and infringed on the first amendment rights to free speech. He is in favor of this amendment. Mayor Notte also spoke in favor of the motion, stating this is tweaking the sign ordinance in three areas. It would give Council more flexibility in the setback, owner consent and size limitations. Councilwoman Schmidt stated they would be allowed three signs as long as they are within the size limitations. Mr. Mende responded that requirement is unchanged. Councilman Smith discussed temporary vs. permanent signs. He questioned the difference between major and regional roads. Councilman Smith disagrees with the change in the square footage for the signs and stated that he sees no benefit to anyone. He is opposed to the motion on the floor. Councilman Romano questioned when a candidate could put up their signs and when they had to remove them. Mr. Mende responded they could put them up immediately after the final filing date with the City Clerk. If they lose the primary election, the signs must come down within seven calendar days of the primary election and seven days after the general election if they are successful. Councilman Romano cautioned candidates if they don’t take the signs down, the City confiscates the signs and the person would have to pay to get them back. Councilwoman Ziarko has no problem with the setbacks. Her biggest problem is with the consent forms and she believes we need to ask for consent. She stated it is not the burden of the owner of the property to go to City Hall; it is the burden of the candidate. Councilwoman Koski asked Mr. Mende to clarify the number of signs that would be allowed and inquired whether it would be 3 political and 3 opinion. Mr. Mende indicated it would be 3 total; they are combining the political and opinion signs. Regular City Council Meeting Tuesday, March 5, 2013 Page 13 Councilwoman Koski questioned the setbacks and inquired whether the 5-foot would cause vision problems for traffic. She agreed with the way the ordinance currently reads and stated we should continue getting signatures. Councilwoman Schmidt questioned the possibility of separating the three issues into three separate motions. Mr. Bahorski responded this is only the introduction. A council member could make a motion to delete a section and it would come back for adoption without that section or the motion could be introduced as is and then an amendment could be made at the time of the adoption. Moved by Ziarko, seconded by Schmidt, RESOLVED, to delete the requirement for the Property Owner Consent. Councilwoman Ziarko believes the candidate should get permission to place his or her signs on someone’s property. Councilwoman Schmidt is in favor of keeping the ordinance the way it presently reads. Councilman Smith wanted to postpone the item for one month and then have it brought back with three separate motions. There was no support for a postponement. Councilman Taylor sees no justification for the written consent forms and stated the owner of the property has the right to remove any signs they feel they don’t want on their property. Councilwoman Koski questioned when and why this provision for signatures was included in the sign ordinance. She stated that’s the reason she is in favor of having some kind of consent from the property owner. Roll call vote on amendment to eliminate the Property Owner Consent: Yes: Ziarko, Schmidt, Koski. No: Notte, Romano, Smith, Taylor. The motion FAILED. Roll call vote on main motion: Yes: Taylor, Notte, Romano. No: Schmidt, Smith, Ziarko, Koski. The motion FAILED. Regular City Council Meeting Tuesday, March 5, 2013 Page 14 COMMUNICATIONS FROM CITIZENS Mr. Joe Rimarcik – Item 4, Exterior Inspection Program; Taxes and separate millages for Police and Fire. Mr. Charles Jefferson – Thank You to New Way Laundromat on their 10th anniversary, Thank You to Planet Fitness for moving into the old Farmer Jack store. ORDINANCE ADOPTION 3. Mr. Jeffrey Norgrove spoke in support of the electronic reporting requirements for secondhand goods transactions within the City and suggested people take pictures of their belongings using their I-Phones. Mr. Joel Thomas questioned the elimination of the need for search warrants. Moved by Romano, seconded by Schmidt, BE IT ORDAINED, to adopt the ordinance amending Chapter 12 of the City Code to implement electronic reporting requirements for secondhand goods transactions within the City. CITY OF STERLING HEIGHTS MACOMB COUNTY, MICHIGAN ORDINANCE NO. 425 AN ORDINANCE TO AMEND CHAPTER 12 OF THE CITY CODE BY IMPLEMENTING GENERAL REGULATIONS AND ELECTRONIC REPORTING REQUIREMENTS FOR SECONDHAND GOODS TRANSACTIONS THE CITY OF STERLING HEIGHTS ORDAINS: SECTION 1. Division 1 of Article II of Chapter 12 of the Code of Ordinances shall be amended to read as follows: DIVISION 1. SECONDHAND MERCHANTS 12-21. GENERAL REGULATIONS GOVERNING ALL SECONDHAND MERCHANTS. (A) The regulations in this Division shall apply to all secondhand merchants within the City, regardless of any other provisions of the City Code, unless specifically exempted by this section. A SECONDHAND MERCHANT is any person, corporation, member of a co- partnership, firm, or limited liability company that purchases, receives, stores, passes through, or exchanges secondhand personal property of any kind in any condition to facilitate or promote the re-sale of such property. By way of illustration and not limitation, pawn shops, pawnbrokers, flea market dealers, junk dealers, automobile wrecking yards, nonferrous metal dealers, jewelers, jewelry exchange participants, precious metal and gem dealers, videogame retailers, electronics stores, toy stores, video stores, and any other store or operation are all deemed to be secondhand merchants for purposes of this Division if they purchase, receive, store, pass through, or exchange secondhand personal property of any nature. Regular City Council Meeting Tuesday, March 5, 2013 Page 15 (B) Every secondhand merchant shall register with the City as a secondhand merchant prior to undertaking any transactions involving secondhand personal property. The registration form shall include all information required by the City Clerk and the Police Department, including but not limited to all formal and informal names of the business or operation, all business and emergency contact information, hours of operation, location(s), name(s) of owners and operators, names(s) of managers or supervisors, dates of birth and driver’s license numbers for owners, operators, managers, and supervisors. The fees for registration and renewals shall be set by the City Council in the annual appropriations ordinance. After the filing of a fully completed registration form and payment of the required fee, the City Clerk shall issue a certificate of registration, except no certificate shall be issued if the business or operation does not have a proper certificate of occupancy or other required licenses or registrations. The certificate of registration shall be effective until the following April 30. By April 1 of each year, the City Clerk shall send each holder of a certificate of registration a copy of the completed registration form for the prior year, and each business or operation shall return it by April 30 with a signed statement that the information has not changed and is correct as of that date or with the addition of whatever information is needed to update or correct the registration form. Upon receipt of the properly completed renewal, and upon determining compliance with this Division and other applicable laws and ordinances, the City Clerk shall issue a sticker indicating registration for the current year, which shall be affixed to the certificate of registration by the business. No certificate of registration may be transferred by the holder to any other person or entity. The City Clerk and his or her agent shall have the right to inspect the premises of any secondhand goods business or operation to ensure compliance with this Division, either before or after issuance of a certificate. The certificate of registration shall be prominently displayed in the place of business where it can readily be viewed by customers and members of the public who enter the establishment. (C) Unless otherwise permitted by law or ordinance, a secondhand merchant shall not purchase or receive any item or goods: (1) From any person under the age of eighteen (18) years without the written consent of a parent or guardian; (2) From any person whom the secondhand merchant has reason to suspect stole the item or goods, or is attempting to sell or dispose of a stolen item or goods, or who has been identified by law enforcement or code enforcement authorities via written or electronic notice as someone from whom secondhand goods should not be received or purchased; (3) From any person between the hours of 9:00 p.m. and 7:00 a.m. of the following day. (D) A secondhand merchant shall keep a record of every person or business with whom any secondhand property transaction is conducted and a record of all property purchased, received, stored, passed through, or exchanged. Every secondhand merchant, by 10:00 a.m. on the next day that the secondhand merchant is open for business or within forty-eight (48) hours if the secondhand merchant does not operate out of a traditional storefront, must transmit a report to the Chief of Police or the Chief’s designee of all transactions in which the secondhand merchant received secondhand or used personal property. A transaction reported by electronic transmission under this subsection shall not be reported on paper forms unless the Chief of Police so requests. The report must be transmitted via e-mail or internet through an electronic information data manager designated by the Chief of Police to facilitate the collection and transmission of such reports. The reports shall be in a format designated by the contractor or service provider. The report shall include all identifying marks or other unique descriptors which distinguish the property from similar items. All jewelry and precious metals or gems, and any property that does not have a serial number, or a product name, or a make and model, shall be photographed from 3 angles and the photographs shall be included with the report. (E) All secondhand merchants must have the equipment or software necessary to transmit the required reports through the electronic information data manager designated by the Chief of Police installed and operational no later than April 30, 2013. The Police Department will require all secondhand merchants to electronically submit data beginning April 1, 2013. Regular City Council Meeting Tuesday, March 5, 2013 Page 16 (F) Exemptions. (1) The purchase, receipt, storage, passing through, or exchange of an antique is exempt from the requirements of this Division if the primary business of the secondhand merchant is the sale or collecting of antiques. This exemption does not mean that an antique dealer is exempt from the requirements of this section if the transaction involves an item that is not an antique. An ANTIQUE is a decorative object, piece of furniture, or other work of art created in, or in the style of, an earlier period that is collected and valued for its beauty, workmanship, and age. (2) The purchase, receipt, storage, passing through, or exchange of clothing is exempt from the requirements of this Division if the primary business of the secondhand merchant is the sale or consignment of clothing. (3) Private residential sales commonly known as “garage sales,” “yard sales,” or “estate sales” involving tangible personal property, whether new, used, secondhand, damages, or discarded and not otherwise regulated, including but not limited to clothing, household effects, tools, garden implements, toys, recreation equipment, and other similar personal household property, advertised by any means whereby the public at large is made aware of such sale, are exempt from the requirements of this Division so long as such sales take place at a residentially zoned property, occur less than 3 times per year, and occur for less than 3 consecutive days. (4) An organization or non-profit entity which is tax-exempt and tax-deductible under an IRS rule, ruling, or determination, and to which all of its secondhand items are donated without payment to the donor by the organization, is exempt from the requirements of this Division. (5) Auctioneers and auction houses are exempt from the requirements of this Division. (6) Individuals engaging in an incidental transaction between themselves are exempt from the requirements of this Division, where neither individual engages in the transaction as part of a more frequent practice designed to produce income. (7) Retail merchants who repossess their own merchandise sold on a title retaining contract or chattel mortgage basis or who accept merchandise as a part payment on new sales are exempt from the requirements of this Division. (8) New articles, wares, or merchandise purchased at wholesale from manufacturers, wholesale, distributors, or jobbers for retail sale to customers are exempt from the requirements of this Division. (9) Old rags, paper, used books, magazines, tapestries, and household furniture are exempt from the requirements of this Division. (10) Secondhand or used tires are exempt from the requirements of this Division when removed from the vehicle to which such tires are attached in the presence of the person receiving them. (11) Persons whose principal business is that of dealing in new goods, articles, and merchandise and who do not buy secondhand goods, articles, and merchandise outright, but occasionally accept in trade or repossess electrical appliances, gas appliances, lighting fixtures, electrical motors, radios, watches, jewelry, precious stones, and musical instruments, are exempt from the requirements of this Division. (12) Used car dealers are exempt from the requirements of this Division. (13) Art galleries are exempt from the requirements of this Division. (G) Regardless of an exemption set forth in this Division, all secondhand merchants must still comply with any and all state law requirements and separate ordinance requirements Regular City Council Meeting Tuesday, March 5, 2013 Page 17 governing the nature of their business, the nature of their transactions, and any recording and reporting requirements set forth therein. (H) Penalties. (1) Any violation of this Division may be charged against the owner or operator of the secondhand merchant operation, as well as against any responsible employee(s) or agent(s). (2) A first violation of any of the requirements of this Division is a municipal civil infraction, punishable as set forth in Chapter 1 of the City Code. (3) A second or subsequent violation of any of the requirements of this Division within any 12 month period of time is a misdemeanor, punishable by up to 90 days in jail, a fine up to $500, or both. (4) A third violation of any of the requirements of this Division, in addition to the penalties set forth in subsection (3) above, occurring within a 7 year period of time shall result in the secondhand merchant operation or business being deemed a nuisance. Upon receipt of written notice from the City that the secondhand merchant’s operation or business has been deemed a nuisance, all secondhand property transactions must cease and the secondhand merchant’s registration will be revoked. Thereafter, the secondhand merchant shall not engage in any secondhand merchant activities covered by this Division. After a period of 1 year, the secondhand merchant may petition the City Manager for the privilege of resuming the secondhand merchant activities. The secondhand merchant shall provide any and all information requested by the City Manager during the petition review process. If the secondhand merchant has honored the cessation order, has provided the City Manager will all requested information, and has not violated any laws during the closure period, the City Manager shall allow the operation or business to resume on an indefinite probationary status. Any violation of this Division during the probationary operation of the business shall result in permanent closure. (I) Appeal. The City’s determination that a business or individual must register as a secondhand merchant may be appealed to the Ordinance Board of Appeals within 14 days of written notice of the determination. Because the interests of residents and law enforcement in finding and reclaiming stolen property outweigh the interests of a business or individual in conducting secondhand property transactions, the business or individual shall not engage in secondhand goods transactions without complying with the requirements of this Division during that appeal time period and during the pendency of the appeal. During the appeal time period, during the pendency of the appeal, and during any period when a registration certificate has not been issued or has been revoked, the Chief of Police shall have the authority to post one or more conspicuous notices on the premises indicating that the business or individual is not authorized to undertake any transactions involving secondhand property. Persons or entities who are cited for a municipal civil infraction or charged with a misdemeanor pursuant to this Division after expiration of the 14-day notice period may not avail themselves of this appeal provision, but may instead defend against the charge in the district court if desired. SECTION 2. Sections 12-22 through 12-40 of the Code of Ordinances shall be Reserved. SECTION 3. Section 1-9(C) of the Code of Ordinances shall be amended to include the following new provision: Chapter Title Section 12 Business Registration and Regulations 12-4(a), (b) Film permits: All sections except 12-160, 12-166, and 12-167 Regular City Council Meeting Tuesday, March 5, 2013 Page 18 12-21 (first offense only) 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 19th day of February, 2013, and was duly adopted at a regular meeting of the City Council of the City of Sterling Heights on the 5th day of March, 2013. MARK CARUFEL, City Clerk INTRODUCED: 02/19/13 ADOPTED: 03/05/13 PUBLISHED: 03/10/13 EFFECTIVE: 03/10/13 Yes: All. The motion carried. 4. Ms. Denice Gerstenberg, City Development Manager, made a presentation as it relates to exterior inspections for non-homestead single-family residential properties. Mr. Ron Babbitt doesn’t have an issue with the purpose of the ordinance; his issue is the fee. He stated the City wants to go through with the inspection for their benefit, so there should not be a fee attached to it. He believes the City should absorb those costs since the whole City would benefit. Moved by Taylor, seconded by Notte, BE IT ORDAINED, to adopt the ordinance amending Chapter 11 of the City Code to implement an exterior inspection program for non-homestead single-family residential properties, as amended. CITY OF STERLING HEIGHTS MACOMB COUNTY, MICHIGAN ORDINANCE NO. 426 AN ORDINANCE AMENDING CHAPTER 11 OF THE CITY CODE TO IMPLEMENT AN EXTERIOR INSPECTION PROGRAM FOR NON- HOMESTEAD SINGLE-FAMILY RESIDENTIAL PROPERTIES THE CITY OF STERLING HEIGHTS ORDAINS: SECTION 1. Section 11-88 shall be added to the City Code to read as follows: 11-88. Non-Homestead Residential Property Inspection Program. (A) As a result of the high incidence of foreclosures during recent years, the number of non-homestead residential properties in the city has risen dramatically. Statistically, such properties account for more than half of the single-family residential properties that are reviewed Regular City Council Meeting Tuesday, March 5, 2013 Page 19 by the Board of Ordinance Appeals each year for exterior property maintenance violations. In the interest of protecting residential property values for residents whose homestead remains within the city, the non-homestead residential property inspection program set forth in this section is hereby created. (B) Non-homestead single-family residential properties within the City shall be subject to a non-complaint based exterior property maintenance inspection once during every 2 calendar years. Upon completion of the inspection, the property owner shall be assessed a fee established by the City’s annual appropriations ordinance for the biennial inspection. Violations discovered during the inspection or the registration period shall be addressed in the same manner as all other property maintenance and nuisance violations, and the same inspection and Board of Ordinance Appeals fees shall apply. (C) As used in this subsection, the term “non-homestead single-family residential property” and “non-homestead residence” shall mean any parcel of property that is zoned for, or used for, single-family residential purposes, but which is not recorded as the owner’s primary residence for homestead exemption tax purposes, or which is not owned by a person or a person’s trust but is instead owned by a corporate or other type of legal entity. The following are excluded from the requirements of this section: 1. Mobile home parks; 2. A non-homestead residence where its owner resides during part of the year and the owner does not rent the residence during the owner’s absence; and 3. A non-homestead residence owned by a property owner who also owns and occupies a homestead property elsewhere within the city. In the event one parcel of property contains more than one single-family residence, each non-homestead residence shall be subject to the 2-year registration program and shall be registered, if possible, by its distinct residential address. (D) The inspection fee authorized by this section shall be paid by the property owner within 30 days of the date of a city invoice for the inspection. The city shall have a lien against the real property to secure payment. If the invoice remains unpaid after 30 days, the amount of the invoice shall be placed upon the tax roll, and shall be subject to the same penalties, interest, and collection procedures that are applicable to delinquent taxes. (E) Enforcement of the lien to collect the inspection fee shall not be the exclusive means of collection and the city may collect such fee in any manner permitted by law. (F) An owner may appeal the city’s determination that the owner’s property is a “non-homestead single-family residential property” by submitting a written letter to the City Manager or designee within 30 days of receiving either a notice that the property has been designated as a “non-homestead single-family residential property” or within 30 days of receiving an invoice for the initial inspection. The City Manager or designee may overturn the determination, uphold the determination, or uphold the determination but waive or reduce the applicable fee if the status of the property changed such that it no longer meets the definition of a non-homestead single-family residential property, as set forth in this section, during either 30- day period. An appeal will toll the deadline for payment of the inspection invoice, which shall become due within 30 days following the date of the City Manager’s written appeal determination if the determination does not waive the inspection fee. SECTION 2. All other provisions of the Code of Ordinances not specifically amended by this ordinance amendment shall remain in full force and effect. SECTION 3. This ordinance shall become effective immediately after publication of a notice of adoption. Regular City Council Meeting Tuesday, March 5, 2013 Page 20 This ordinance was introduced at a regular meeting of the City Council of the City of Sterling Heights on the 19th day of February, 2013, and was duly adopted at a regular meeting of the City Council of the City of Sterling Heights on the 5th day of March, 2013. MARK CARUFEL, City Clerk INTRODUCED: 02/19/13 ADOPTED: 03/05/13 PUBLISHED: 03/10/13 EFFECTIVE: 03/10/13 Councilman Taylor spoke in support of the ordinance and stated he is comfortable charging the fee to the non-homestead properties to make sure they comply with our ordinances. Councilman Smith questioned whether the City gets a higher tax rate from the non- homestead properties. He stated the non-homestead properties are already paying more than homestead properties, so the fee should be deleted. He made a motion to amend the motion to delete the fee. There was no support for his motion. Vote on motion to adopt the ordinance amending Chapter 11 of the City Code: Yes: All. The motion carried. CONSENT AGENDA 5. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda: A. To approve the minutes of the Special Meeting of February 12 and Regular Meeting of February 19, 2013, as presented. B. To approve payment of the bills as presented: General Fund - $717,042.85, Water & Sewer Fund - $302,328.36, Other Funds - $747,302.37, Total Checks - $1,766,673.58. C. RESOLVED, to adopt the Depository Resolution as amended to designate new City Clerk Mark Carufel as an authorized signatory. DEPOSITORY RESOLUTION Resolution made and adopted at a regular meeting of the City Council of the City of Sterling Heights, Michigan, held at the City Offices on the 5th day of March, 2013. Members Present: Koski, Romano, Notte, Schmidt, Smith, Taylor, Ziarko. Members Absent: None. The following preamble and resolution was offered by Member Koski and supported by Member Romano. Regular City Council Meeting Tuesday, March 5, 2013 Page 21 The Sterling Heights City Council designates and authorizes Comerica Bank of Detroit, Michigan as a depository for checks, drafts and other negotiable instruments when endorsed in its name by rubber stamp or otherwise. Additionally, City Council designates any bank with a branch office in Michigan as a depository for the purpose of establishing investment type accounts as defined in Public Act 20 of 1943 as amended and the City’s Investment Policy. The City Treasurer is authorized to open with any bank designated above such account under such captions as determined to be necessary or desirable. That all funds credited to such accounts may be paid out or withdrawn by checks, withdrawals or wire/electronic transfer orders drawn against respective accounts when signed by two of the following: Name Title Brian S. Baker Finance & Budget Director Mark Carufel City Clerk Jennifer L. Varney City Treasurer Whose authorized signatures shall be duly certified to any bank designated above, and the bank is authorized to honor and pay any check, withdrawal or wire/electronic transfer order without inquiry as to the circumstances of issue or the deposition of the proceeds. That any one or more of the persons authorized to withdraw funds are authorized to enter into the contract set forth in the specimen signature cards provided by any bank for any accounts opened under this resolution. This resolution supersedes any prior resolution adopted by the City Council relating to the subject matter of this Resolution. Resolution declared and adopted. CERTIFICATION I hereby certify that the above Resolution is a true and current copy of a Resolution entered in the Minutes of the Sterling Heights City Council, held at a Regular meeting of said Council on the 5th day of March, 2013. MARK CARUFEL, City Clerk D. RESOLVED, to award the bid for two Argus thermal imaging cameras to First Due Fire Supply, 207 E. Kipp Road, Suite A, Mason, MI 48854, at a total cost of $13,230.00. E. RESOLVED, to award the bid for repairs to the Brookline Pump Station, City Project #12-225, to Mark J. Wozniak, d/b/a Wozniak Underground, 4220 22 Mile Road, Shelby Township, MI 48315 in the amount of $108,369.00 and authorize the Mayor and City Clerk to sign the contract on behalf of the City. F. RESOLVED, to award the bid for trimming of street trees to Owen Tree Service, Inc., 225 North Lake George Road, Attica, MI 48412 for a one-year period at unit prices bid. Regular City Council Meeting Tuesday, March 5, 2013 Page 22 G. RESOLVED, to approve final payment to Cadillac Asphalt LLC, 12345 23 Mile Road, Shelby Township, MI 48315 in the amount of $48,712.47, plus interest on retainage, for the Gainsley Drive Sanitary Sewer Repairs, City Project #11-220. H. RESOLVED, to approve the Metro Macomb SWAT Agreement between the City of Sterling Heights and participating County of Macomb municipalities and authorize the City Manager, City Clerk and Police Chief to execute all documents required in conjunction with this approval on behalf of the City. Yes: All. The motion carried. CONSIDERATION 6. Moved by Schmidt, seconded by Ziarko, RESOLVED, to appoint Stephen Bilan to the Board of Review to an unexpired term ending June 30, 2014, subject to the appointee meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Both Councilman Romano and Councilman Smith felt that the appointments should be made at the beginning of the agenda and that it would be an honor for the applicants to appear before the City Council to accept their appointment and let the residents see the person being appointed. Vote on motion to appoint Mr. Bilan: Yes: All. The motion carried. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL There were no reports at this time. ADJOURN Moved by Ziarko, seconded by Romano, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 10:31 p.m. MARK CARUFEL, City Clerk