City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, JULY 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 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 D. Vanderpool, City Manager; Jeffrey Bahorski, City Attorney; Mark Carufel, City Clerk; Meghan Ahearn, Recording Secretary. APPROVAL OF AGENDA Moved by Koski, seconded by Romano, to approve the Agenda with the substitution of the blue sheet resolution to designate voting representative and alternate to serve as a member of the MACRO Board of Directors under Consent Agenda Item 4-H, and moving Consent Agenda Items 4-D and 4-H to Consideration Items 8 and 9 respectively. Yes: All. The motion carried. REPORT FROM CITY MANAGER Mr. Vanderpool reported on the E-Ticket program through the Police Department. The entire fleet of approximately fifty vehicles has been equipped with the devices. The interface between the Court records and Police Department is also fully functional. The online payment process should be available in the near future. The new software will eliminate the need to write out hard-copy tickets. Instead, officers will scan a driver’s license and all information will automatically be printed on in-car mini printers. Mr. Vanderpool reported that the Sterling Heights Community Foundation has partnered with the Detroit Institute of Arts to bring framed reproductions of seven of its most famous masterpieces to the outdoor spaces of the City Center area. Instillation of the artwork has occurred so they can now be seen around the City Center and remain on Regular City Council Meeting Tuesday, July 2, 2013 Page 2 display through September. The Community Foundation is planning a series of events to provide residents with the opportunities to interact with the artwork, including a family art evening on Thursday, July 11 from 6 to 8pm. The event is free of charge to residents and children to tour the artwork and interact with the Sterling Heights Public Library, and also a free trolley ride to the Nature Center to view the artwork located there. Mr. Vanderpool reported that the Sterling Heights Parks and Recreation Department will be hosting its 13th Annual Teen Fest on Tuesday, July 9 from 7 to 9 in Dodge Park for ages 12-15. Residents can visit the website or call the Parks and Recreation Department to register. Mr. Vanderpool reminded residents that there would be no refuse collection on Thursday, July 4. Refuse Collection with resume on Friday, July 5 and will be delayed a day the rest of the week. Mr. Vanderpool reported on firework displays. He explained that in the name of public safety it’s important for the residents to understand the restrictions in place. He invited Fire Chief Chris Martin to the podium to make a presentation about the dos and don’ts for the holiday. Fire Chief Chris Martin reported on the ordinance within the City for fireworks. There is a three-day period around ten national holidays that fireworks are legal to display. The City of Sterling Heights does not allow fireworks between the times of 11pm and 7am; however, the State has adopted a statute that prohibits fireworks between midnight and 8am so the City must abide by what the State has set forth. The biggest restriction is that the fireworks are only allowed to be set off on private property. They are not allowed to be set off on public property, streets, easements, sidewalk, parking lots, parks, or right-of- ways. It has to be on private property, but not within 20 feet of any property line or within 25 feet of a building, 500 feet of a gas station, or anytime winds are more than ten miles an hour. Fireworks are considered legal when they have a placard on the box with a 1.4 rating, sometimes reading “Consumer Grade”. Anything with 1.3 or 1.1 will be a more professional grade making a bigger boom. Examples of more common illegal fireworks are Cherry Bombs, M-80’s, and the Silver Salute. Chief Martin recommends Regular City Council Meeting Tuesday, July 2, 2013 Page 3 purchasing fireworks from an authorized retailer and they will have restrictions or manufacturer suggestions for how to light them off. Make sure anything that leaves the ground has a stable base, nothing leaning. Fireworks are illegal for children under the age of 18 to purchase and to set off. Make sure children are away from where the fireworks are being lit. Residents lighting off fireworks should clean up their litter and douse all used fireworks in water to keep embers from catching fire. The State violation rate is up to $500. The City of Sterling Heights ordinance lists $150 citation for first offense and $375 for repeat offenders. Mr. Vanderpool commented that the Police Department will have a special patrol out doing nothing but focusing on illegal fireworks. Councilman Romano asked the age for purchasing and the age for setting off fireworks. He also questioned how fireworks can be set off on residential property when the size of the typical Sterling Heights lot does not fall within all of the parameters of the law. He asked if setting off mortars was against the noise ordinance in the City. Mr. Jeff Bahorski answered that it would be a difficult case to prosecute considering the celebration of the holiday. Councilman Romano asked how many citations have been given out. Mr. Vanderpool answered that there have been four citations handed out this season; however, it’s very difficult to catch someone in the act, which is why it is difficult to issue more citations. Mr. Romano thinks more should be done to prevent all of the fireworks from being set off on restricted days. He would like the City and legal department to find a way around the State’s ordinance. Councilman Smith commented on fireworks going on in his neighborhood. He doesn’t understand why there is a lack of law enforcement in this area. Councilwoman Ziarko added to the discussion by specifying that the problem is the illegal days that fireworks are being displayed, not the legal days. She asked if a resident called the police to complain about illegal firework displays and took a picture using a camera or phone, would that be enough evidence for the police to issue a citation. Mr. Bahorski answered that the caller would have to agree to be the complainant on the ticket if they were to submit a video as evidence. He added that he agrees that the issue is about fireworks going off on restricted days, however, with the volume that has been going off anywhere in Sterling Heights is tremendous, and we would need a significant police Regular City Council Meeting Tuesday, July 2, 2013 Page 4 presence in just about every neighborhood in the City to deter it from happening. Councilwoman Ziarko feels that the message the City is sending is that we are helpless to enforce the law, that we are giving people the green light to do it because we don’t have the manpower to keep up with enforcing it. Councilwoman Schmidt asked where the illegal fireworks are being obtained. Chief Martin assured her they are being obtained elsewhere. She expressed concerns about a cargo trailer behind the Phantom Fireworks store at 16 Mile Road and Van Dyke. Chief Martin assured her that he would have the Fire Marshall check on it the next day. Mayor Notte requested that Chief Martin lead us in a moment of silence to honor the 19 fallen firefighters that perished. PRESENTATION Fire Chief Martin made a presentation to recognize Fire Chaplin Richard Horn who began his service to the City of Sterling Heights Fire Department on May 16, 2001. He has been very active with the Fire Department as Chaplin, which is a voluntary position with no pay or benefits. Moved by Romano, seconded by Schmidt, RESOLVED, to recognize and honor Fire Chaplin Richard Horn for his years of service and to present him with a plaque in recognition of all he has done for the Department. PUBLIC HEARING 1. Mayor Notte opened the public hearing on the application by VSE Corporation for an Industrial Facilities Tax Exemption Certificate at 34400 Mound Road. Economic Development Manager Kasey Green presented the request for an Industrial Facilities Tax Exemption Certificate by VSE Corporation at 34400 Mound Road. She stated VSE Corporation was established in 1959 with a mission to provide engineering and technical support services to reduce the cost and improve the reliability for Department of Defense systems and equipment. Today, VSE is a broadly diversified company servicing the engineering, energy, environment, information technology, and defense markets with system sustainment, prototyping, engineering, supply chain management, and other services. A key area of VSE’s business and one they focus predominantly on locally would be the defense market. VSE has provided more than two Regular City Council Meeting Tuesday, July 2, 2013 Page 5 billion in diversified engineering and technical support services to the US government and has been ranked among the top 100 defense contractors. VSE has operated in Sterling Heights for 26 years with operations at two facilities: at 6790 Sims Drive where they have approximately 22,000 square feet, and at 41150 Technology Park where they have approximately 11,000 square feet. As a result of their success, the company is in need of additional space. To accommodate this growth, VSE recently entered into a lease for an approximately 88,000 square foot facility located at 34400 Mound Road where they will be consolidating operations into a single, more efficient site and more than doubling their physical footprint in Sterling Heights. VSE will be investing approximately $1.9 million in the facility on Mound, which is the basis for their request for the 50% abatement under the Industrial Facilities Tax Exemption this evening. Mayor Notte opened the discussion to the audience. Mr. Jeffrey Norgrove spoke in favor of the request. He stated the company would be moving into a vacant building, which would otherwise remain vacant, and bringing new jobs into the City. He is all for it, he likes to see vacant properties taken up instead of new properties being built, and he hopes Council approves it. Mr. Harry Marchlones spoke in favor of the request. He stated that the companies under consideration have been viable businesses that employ people, fill up empty buildings, and make the City a prosperous location. He explained that the Economic Development Director is doing her job well by coming to the meetings and having her numbers and data to back her up. Mayor Notte closed the public hearing. Moved by Schmidt, seconded by Ziarko, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by VSE Corporation at 34400 Mound Road is hereby approved for a period of four years in accordance with the guidelines established by City Council and the Mayor and City Clerk are hereby authorized to sign, as applicable, all documents required in conjunction with this approval. Councilwoman Schmidt questioned why the lease was only for four years. Mr. Glavich, representing VSE Corporation, stated that it is actually a five-year lease of which one year has already passed. He stated that due to the nature of the business of defense Regular City Council Meeting Tuesday, July 2, 2013 Page 6 contracts, they do not like to get into long-term leases. Their contracts usually go for 2-3 years with 2-3 year extensions so they keep it within that limit. Councilwoman Schmidt thanked VSE Corporation for investing in new jobs in the community. Councilwoman Koski asked Mr. Glavich to clarify that if VSE is consolidating their facilities into one larger, does that mean that they will be closing the Sims Drive and Technology Park locations. Mr. Glavich answered that yes, they intend to close those locations. Councilman Smith requested Ms. Green to explain the status of the vacant former Macomb Plumbing building, specifically if it is owned by a landlord. Ms. Green explained that she would need to look into it and get back to him. He further asked if the property was paying tax or not at this time. Ms. Green explained that the property remains on the tax rolls regardless of whether or not it is occupied. Councilman Smith stated that the City currently gets full taxation on the building, but with the abatement incentive, we will be cutting the taxes received in half. Ms. Green clarified by saying that the location at 34400 Mound Road is the subject of the application for the tax abatement had been vacant when Macomb Group left the site for their expansion on 15 Mile Road. The building itself remains on the tax rolls as real property on the tax rolls. The abatement before Council this evening has no impact on existing property, which continues to be fully taxed. The tax liability on the real property for the location at 34400 Mound Road will continue just as it was yesterday under this action. What is abated is their new investment. Mr. David Margolis, the chief financial officer for the Macomb Group and K & B Properties, LLC, explained that when they renovated the building on Mound Road back in 2004, they created an LLC real estate company so they were both tenant and landlord. When their company came before Council a year and a half ago, they made financial commitments, which they have since exceeded. The building on Mound is actually 96,000 square feet and they are current on their taxes. They found a strong, viable tenant in VSE to maintain the lease for the term of their contract. They are contracted for a five-year term; however, there is an opportunity for two renewal lease options. Regular City Council Meeting Tuesday, July 2, 2013 Page 7 Councilman Smith stated that we have heard discussions about next year when Governor Snyder will give everyone 100% tax abatement. Now we’re talking about a 50% tax abatement when the 100% tax phase out is right around the corner. He is questioning why we bother discussing the 50% tax abatement when we’re going to get 100% tax abatement next year anyway. Ms. Green explained that the personal property tax reform will be subject to a voter action in 2014. As the law currently stands today, tax abatements under Public Act 198, continue to be an eligible incentive for industrial facilities that companies can take advantage of. Mr. Vanderpool stated that on average, the typical tax abatement adds up to only 4% of the total tax liability that the given company pays. He explained it’s important to keep the 50% in context, and that it’s only on the new investment. Also, other cities offer the same tax abatements. The City of Sterling Heights needs to stay competitive in order to attract businesses. Councilwoman Ziarko asked if this company was being treated any differently than any other company asking for the same tax abatement and if they had met all of the requirements set forth by the State. Ms. Green confirmed VSE was treated the same and they met all the state requirements. Councilman Taylor stated that a company looking for expansion may choose not to settle in a city that does not offer tax abatements and that over the long haul it will be better economically for the City to offer the incentive than if we do not give the abatement. He stated that the backup was clear that VSE currently has 70 employees moving to the Mound Road location, and they will be adding 60 new jobs. Yes: Schmidt, Ziarko, Koski, Notte, Romano, Taylor. No: Smith. The motion carried. 2. Mayor Notte opened the public hearing on the application by M and N Plastics for an Industrial Facilities Tax Exemption Certificate at 6450 Dobry Drive. Economic Development Manager Kasey Green presented the request for an Industrial Facilities Tax Exemption Certificate by M and N Plastics at 6450 Dobry Drive. She stated M and N Plastics is a family owned company that was founded in 1977 and has operated out of their 32,000 square foot facility on Dobry Drive since 1990. M and N Plastics is the supplier of plastic injection molded products for the automotive, appliance, Regular City Council Meeting Tuesday, July 2, 2013 Page 8 and agricultural industries and the company also has a facility in El Paso, Texas where they have also been expanding operations. Locally, this company supplies parts, including electrical harnessing troughs and routing components that supply electricity through a variety of motor vehicle lines. The expansion project will add over 8,000 square feet, expanding their physical footprint to 41,000 square feet. Additionally, they will be creating 12 new, full-time jobs. Mayor Notte opened the discussion to the audience. Mr. Charles Jefferson spoke and asked if M & N doesn’t get approval for the IFEC, will they leave the City of Sterling Heights. Mayor Notte closed the public hearing. Moved by Ziarko, seconded by Schmidt, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by M and N Plastics, Inc. at 6450 Dobry Drive is hereby approved for a period of nine years in accordance with the guidelines established by City Council and the Mayor and City Clerk are hereby authorized to sign, as applicable, all documents required in conjunction with this approval. Councilwoman Ziarko stated that she is glad the company has decided to expand their business in Sterling Heights and she appreciates they have decided to partner with our City. She questioned Mr. Nagle, CFO of M and N Plastics, if the City of El Paso, Texas was as business friendly as the City of Sterling Heights. Mr. Nagle replied no. He explained that the jobs in Sterling Heights are more technical and that the facility in El Paso exists because it is in close proximity to one of their clients. Councilwoman Ziarko asked Ms. Green if the company had met all of the State’s requirements. Ms. Green replied they had. Councilman Smith stated that M and N was different from VSE. M and N has a tremendous facility and they have been here for 36 years, and the possibility of them going elsewhere is nil. Councilwoman Schmidt asked Mr. Vanderpool to clarify if commercial property owners pay the same millage as residential property owners. Mr. Vanderpool responded no, they pay a significantly higher rate because they do not get the homestead exemption. Councilwoman Schmidt stated that the City has presented to its residents an opportunity Regular City Council Meeting Tuesday, July 2, 2013 Page 9 to vote on a 2.5 millage increase for public safety and roads. She asked if it applied to commercial properties, as well. Mr. Vanderpool stated that it does. Councilwoman Schmidt stated that even though Mr. Nagle does not live in the City of Sterling Heights and will not have the opportunity to vote on the 2.5 millage increase, he would still have to respect the decision the voters of the City. She appreciates them staying in Sterling Heights and bringing new jobs here. Mayor Notte stated that he has always been in favor of more tax revenue from new investment in the City. Yes: Ziarko, Schmidt, Koski, Notte, Romano, Taylor. No: Smith. The motion carried. ORDINANCE INTRODUCTION 3. Fire Chief Chris Martin made a presentation on the proposed ordinance amending Chapter 20 of the City Code to implement electronic reporting requirements for inspections and tests under the International Fire Code. He stated the Fire Prevention Division of the Sterling Heights Fire Department (SHFD) is responsible for the proactive inspection of buildings and facilities within the City. Many of these buildings/businesses have fire suppression and fire alarm systems. These specialized life safety systems are subject to mandatory inspections per the adopted International Fire Code. The inspections are performed by inspection, testing, and maintenance (ITM) companies, which then generate a written report that is submitted to the Fire Prevention Division. These written ITM reports provide detailed information regarding code compliance or deficiencies in the building fire suppression or containment system. These manual, multi-copy reports require filing (for compliant inspections) or follow-up (for deficient inspections) by personnel of Fire Prevention Division. The volume of written reports being submitted relative to the number of fire personnel available to process them has become overwhelming and problematic. He stated the proposed ordinance requires that ITM companies and commercial property owners that perform self-inspections register with and utilize a web-based inspection report management system. The ITM and commercial property owners will submit inspection and test reports electronically through a secure and centralized server managed by a vendor selected by the City. The City, in turn, will have the ability to access, Regular City Council Meeting Tuesday, July 2, 2013 Page 10 monitor and manage the information submitted into the reporting system. Many municipalities are implementing electronic reporting of fire system inspections and tests. In Michigan, the cities of Brighton and Livonia have recently implemented similar electronic reporting requirements. He stated there are multiple vendors who have developed web-based fire inspection report management systems for municipal use. In anticipation of the City Council’s consideration of the ordinance, the Office of Purchasing developed and issued a request for proposals (RFP) that would provide the City with such a system. An evaluation committee comprised of the Assistant Fire Chief, Fire Marshal, and Fire Inspector reviewed the proposals and conducted interviews of the three responding vendors on June 17, 2013. The evaluation committee concluded through the interview process that all three vendors have comparable services. There were two variables that did differentiate the proposals from one another. The first factor was whether the vendor had a local presence with AHJ’s in S.E. Michigan. A local presence allows Fire Prevention Divisions and ITM’s the opportunity to network, identify common issues, and utilize the user group to effect changes to the web-based system to better address the overall needs of the group. One of the three vendors, Inspection Reports on Line (IROL), has over 30 current clients situated in the Southeastern Michigan using its system and improving upon its functionality. Moved by Romano, seconded by Notte, RESOLVED, to: A. Introduce the ordinance amending Chapter 20 of the City Code to implement electronic reporting requirements for inspections and tests required under the International Fire Code; and, B. Contingent upon the adoption of the ordinance amending Chapter 20 of the City Code, accept the proposal by IROL, LLC, 1080 Corporate Boulevard, Suite 200, Aurora, Illinois 60502 for a web-based fire inspection report management system for a three-year period, with an option for the City Manager to extend the terms and conditions of the proposal for two additional years upon mutual consent; and, C. Subject to review and approval by the City Attorney, authorize the Mayor and City Clerk to sign all documents required in conjunction with this action. Regular City Council Meeting Tuesday, July 2, 2013 Page 11 Councilman Romano stated the proposed ordinance would help the City check the commercial businesses and is a positive program for the City. Mayor Notte complimented Chief Martin on the presentation and stated the program will make the process easier. Yes: All. The motion carried. CONSENT AGENDA 4. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda as amended: A. To approve the minutes of the Regular Meeting of June 18, 2013, as presented. B. To approve payment of the bills as presented: General Fund - $917,198.44, Water & Sewer Fund - $79,435.52, Other Funds - $768,497.12, Total Checks - $1,765,131.08. C. RESOLVED, to approve final payment to Capital Contracting, Inc., 6336 Millett Ave., Sterling Heights, MI 48312 in the amount of $29, 196.15, plus interest on retainage, for the Utica Road Water Main and Sanitary Sewer Extensions (Plumbrook Road to Puritan Drive, East Side), City Project #06-146. D. Moved to Consideration Item 8. E. RESOLVED, to accept the proposal by First Impressions Custom Printwear, Inc., 44432 Reynolds Drive, Clinton Township, MI 48036, for printed and embroidered clothing for a one-year period. F. RESOLVED, to accept the proposal by FORTIS Payment Systems, LLC, 43155 Main Street, Novi, MI 48375, for merchant credit/debit card services for a three-year period, with an option for the City Manager to extend the terms and conditions of the proposal for two one-year terms upon mutual consent. G. RESOLVED, to purchase library books through the Suburban Library Cooperative, 44750 Delco Blvd., Sterling Heights, MI 48313, for fiscal year 2013/14 in the amount of $80,000. H. Moved to Consideration Item 9. I. RESOLVED, to approve the fiscal year 2013/2014 schedule of regular City Council meetings and direct the City Clerk to post notices in accordance with the Open Meetings Act. Regular City Council Meeting Tuesday, July 2, 2013 Page 12 Yes: All. The motion carried. CONSIDERATION 5. Mr. Mark Vanderpool, City Manager, made a presentation to consider approval of a collective bargaining agreement between the City of Sterling Heights and Police Officers Labor Council (POLC) / Emergency Dispatch Unit for the period of July 1, 2012 to June 30, 2015. He stated the following highlights: a. The duration of the new CBA is three years from July 1, 2012 to June 30, 2015. Because it is anticipated that the City will cease operating the dispatch center within this term, the CBA provides an early-out clause. b. The Union has agreed to freeze wages at the rates in effect on July 1, 2011. In addition, the Union has agreed to a 15% reduction in the wages for new hires. The City anticipates hiring dispatchers during the duration of the CBA due to possible attrition in the near future. c. The Union has agreed to eliminate the fifteen-minute roll call, which was paid at time and one-half under the expiring CBA. d. The Union agreed to the elimination of deferred compensation payments in the amount of $800. e. The Union has agreed to a one-third (33-1/3%) reduction in longevity pay. f. Members of the Union eligible for participation in the defined benefit pension plan will increase their employee-contribution from 5% to 8%. Members participating in the defined contribution plan, equivalent to a 401k in the private sector, will receive a City contribution of 4% of base salary instead of 7% City contribution under the expired CBA. g. Dispatchers hired after July 1, 2012 are not eligible for retiree medical coverage. Those hired prior to June 30, 2012 and are eligible for retiree medical coverage are subject to two changes in retiree healthcare during retirement. The first change occurs five years after retirement when the premium share changes from 10% to 12.5%. The second change occurs ten years after retirement when the premium share changes from 12.5% to 15%. h. Buybacks of military service time for pension purposes are eliminated. Regular City Council Meeting Tuesday, July 2, 2013 Page 13 i. The base medical and hospitalization coverage will include 10% premium sharing, increased deductibles and co-pays, and $15/$30/$50 prescription drug plan. j. The CBA provides the following severance benefits for the employees who are losing employment with Sterling Heights who agree to stay until cessation of operations of the center: i. Early Retirement Incentive Program (ERIP). For the seven most senior employees who have attained age and years of service totaling 70 by the separation date, they will be eligible to retire under an ERIP, consistent with those offered to other employees. ii. One employee who does not qualify for the ERIP will be granted eligibility to receive a deferred pension as of March 2022. This employee is not eligible for retiree medical benefits. iii. Ten employees will qualify for a severance payment equal to $1,000 for each full year of service with the City as of the separation date up to a maximum of 15 years. This benefit matches what was offered to City employees laid off in 2012. iv. Three employees participating in the fixed pension plan will fall just short of the ten years of service required for vesting. These three employees will be allowed to vest based on the amount of earned service accumulated on the separation date. They will not be eligible for retiree medical benefits. v. Three employees participating in the defined contribution plan will fall just short of the five years required for vesting. These employees will be allowed to vest for purposes of retaining the accumulated contributions to their respective accounts made by the City as of the separation date. vi. Continuation of Hospitalization Coverage. For those employees who take employment with Macomb County as emergency dispatchers, there will be at least a 90-day waiting period before the medical and hospitalization coverage begins with their new employer. To cover this “gap” in Regular City Council Meeting Tuesday, July 2, 2013 Page 14 coverage, he City will provide coverage under COBRA to the transitioning dispatchers. This coverage cannot exceed 120 days. In total, the CBA results in a savings of approximately 12%. Mr. Vanderpool thanked all the members of the bargaining group for their cooperation during this transition period along with the excellent work they continue to perform on a regular basis. Moved by Ziarko, seconded by Notte, RESOLVED, to approve the collective bargaining agreement between the City of Sterling Heights and Police Officers Labor Council (POLC) / Emergency Dispatch Unit for the period of July 1, 2012 to July 30, 2015 and authorize the Mayor and City Clerk to sign all documents in conjunction with this approval. Councilwoman Ziarko asked for clarification on the vesting rights of the three employees that participated in the defined contribution plan and whether they would lose their contributions. Mr. Vanderpool stated that but for this agreement they would lose their accumulated contributions, however, as a result of this agreement they will retain their accumulated contributions. Councilwoman Ziarko questioned why the contract term ends in 2015 when the transition will take place in 2014. Mr. Vanderpool explained that they fully expect the transition to take place in 2014, however, often times when undertaking difficult projects, the transition can take longer than expected. The CBA gives the City flexibility in case it is delayed. Mayor Notte stated he supported the motion and the agreement is equitable for the City and the dispatchers. Councilman Romano stated he is against moving the dispatch center to the County, however, since the dispatchers agreed to the contract, he will vote in favor of the contract. Yes: All. The motion carried. 6. Moved by Ziarko, seconded by Notte, RESOLVED, to appoint Al Kollmorgen to the Ordinance Board of Appeals Panel II to a 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. Regular City Council Meeting Tuesday, July 2, 2013 Page 15 Councilman Taylor asked why Mr. Kollmorgan was being recommended for appointment to the one-year term. Councilwoman Ziarko stated that he is very active in other commissions and he would be eligible for reappointment in one year and if it was delayed the appointment might be fore only 11 months. Yes: All. The motion carried. Moved by Romano, seconded by Schmidt, RESOLVED, to appoint Derek D’Angelo and Bruce Kremhelmer to the Ordinance Board of Appeals Panel II to a term ending June 30, 2015, 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. Moved by Taylor, seconded by Ziarko, RESOLVED, to appoint Michael Sauger to the Ordinance Board of Appeals Panel II to a term ending June 30, 2016, 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. 7. Moved by Romano, seconded by Schmidt, RESOLVED, to postpone to the July 16, 2013 regular City Council meeting the appointments to the Beautification Commission. Yes: All. The motion carried. Moved by Ziarko, seconded by Schmidt, RESOLVED, to postpone to the July 16, 2013 regular City Council meeting the appointment to the Citizens Advisory Committee. Yes: All. The motion carried. Moved by Romano, seconded by Ziarko, RESOLVED, to appoint Jeffrey Norgrove to the Historical Commission to a term ending June 30, 2016, 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. 8. Item 4-D from the Consent Agenda. Moved by Taylor, seconded by Ziarko, RESOLVED to approve a Legal Services Agreement between the City of Sterling Heights and Keller Thoma, P.C. for special legal Regular City Council Meeting Tuesday, July 2, 2013 Page 16 counsel services – labor law and authorize the Mayor and City Clerk to sign it on behalf of the City. Councilman Taylor stated that prior to Keller Thoma legal services, there would be unionized labor management employees bargaining on behalf of management against unionized employees who were bargaining for the employees. There were unionized members bargaining against one another and it wasn’t a great situation. He mentioned that former Councilwoman Yvonne Kniaz was a strong supporter of the hiring of legal services for labor negotiations and Councilman Taylor feels that it has been a good thing. He thinks that it has saved the City money and that the City has made a lot of progress with the union contracts the City has made in the last couple of years and he hopes it passes. Councilwoman Koski stated that she has a great deal of confidence in the City’s attorney, Mr. Bahorski. He brought Council a contract tonight, which they approved, and she feels that he is capable of handling the City’s negotiations at this time. If the City needs legal services that are experts in 312, then bring them in at that time, however, bringing in Keller Thoma at this time is premature and that we should give the City attorney the opportunity to show that he can handle negotiations as we have done in the past. She is not in favor of doing this. Councilman Romano asked Mr. Vanderpool how much money has been paid to Keller Thoma for labor negotiations in the last year. Mr. Vanderpool responded the amount paid was $89,469.13, however, the budget for general legal counsel services was reduced by 5% so the net increase was $40,000. Councilman Romano stated that the majority of the City’s regular labor negotiations were settled by the City’s own legal firm. He feels it isn’t necessary to hire Keller Thoma. Even though it’s only on a contract basis if we need them. He stated the City has accomplished what was set out for with our own legal department, he feels confident in Mr. Bahorski researching some of the contract issues rather than paying Keller Thoma. He stated he opposes the hiring of Keller Thoma. Councilman Smith stated we cannot afford not to hire a labor negotiator. The amount of money spent on Keller Thoma is only about one tenth of 1% of the money involved in Regular City Council Meeting Tuesday, July 2, 2013 Page 17 labor negotiations. He said that all of the 11 unions within the City have professional, hard-working labor negotiators working to get everything they can for the unions. Councilman Smith feels that the City cannot be prepared to deal with that without having their own law firm that specializes in labor negotiations. Councilwoman Schmidt stated that she is in favor of continuing the contract with Keller Thoma. She asked Mr. Vanderpool that if the City’s legal department, Mr. Bahorski and his firm, settle a legal agreement, does the City pay anything to Keller Thoma? Mr. Vanderpool responded that if Keller Thoma is not involved with the negotiations, then they do not get paid. Councilwoman Schmidt responded that the City has reached out to the public safety labor unions to come up with an agreement; however, it has not worked out, which has required the legal services of Keller Thoma and she is comfortable with the relationship. Councilwoman Ziarko agreed with her colleagues that she thinks the City needs to retain Keller Thoma as the labor attorney. They are not friendly at the negotiating tables and that is probably why they have had some complaints from the employee unions that they didn’t like Mr. Dubay, but that’s part of his job. She stated we should keep Mr. Dubay. Mayor Notte is in favor of keeping Keller Thoma. It gives the City an equal playing field. Roll Call vote: Yes: Taylor, Ziarko, Notte, Schmidt, Smith. No: Koski, Romano. The motion carried. 9. Item 4-H from the Consent Agenda Mr. Vanderpool made a presentation explaining that a couple of years ago, Sterling Heights was involved in founding a collaboration group called MACRO, consisting of a number of jurisdictions within Macomb County. The reason the group was created was in light of the financial challenges that municipalities were experiencing at the time, and to a great extent, continue to experience. In taking a lead roll, the City felt it was important that a group like this come together. The purpose of the group is to foster collaboration and open lines of communication with other entities, namely the County and other Macomb cities and townships. The state encourages these sorts of endeavors. The agreement will formalize the MACRO group. Essentially, it will create an entity Regular City Council Meeting Tuesday, July 2, 2013 Page 18 called MACRO. The entity will have no taxing authority; in addition, there will not be any membership fees, but it does allow this group to put forth proposals for grant funding and philanthropic funding, to be able to conduct feasibility studies, to look at various revenue ideas and options that might not otherwise be available to these individual municipalities. The municipalities that are involved in MACRO are the City of Sterling Heights, the City of Centerline, the Township of Clinton, the City of Eastpointe, the City of Fraser, the City of Mt. Clemens, the City of Roseville, the Township of Shelby, the City of St. Clair, the City of Utica, and Macomb County has been very involved in the efforts. The State has taken notice of the MACRO efforts. It has agreed to fund a grant to help establish the MACRO group. Moved by Schmidt, seconded by Ziarko, RESOLVED, to 1. Adopt the resolution approving the Macomb Area Communities for Regional Opportunities (“MACRO”) Interlocal Agreement; 2. Adopt the resolution designating the City’s MACRO representatives; 3. Adopt a resolution to accept a Competitive Grant Assistance Program (“CGAP”) grant from the State of Michigan; and, 4. Authorize the City Manager and City Clerk to sign all documents required in conjunction with participation in the MACRO and acceptance of the CGAP grant. Councilwoman Schmidt stated that Mr. Vanderpool was very clear in explaining the purpose of MACRO and she is in favor of it. Councilman Smith stated that he opposed creating and becoming a participant in another layer of government. He doesn’t agree with the City authorizing the City Manager and the City Clerk, who are paid employees rather than elected officials, to represent the City and enter into agreements on behalf of the residents. He thinks there are already too many layers of government. Councilwoman Ziarko stated that she didn’t think that MACRO presented itself as another layer of government. She thinks that it is a cooperation with other municipalities and we’re stronger for doing it together rather than by ourselves. She asked for clarification by Mr. Vanderpool. Mr. Vanderpool explained that MACRO is not a legally autonomous group that can levy taxes or act as a government entity on its own. It is simply an intergovernmental agreement under the auspices of collaboration and Regular City Council Meeting Tuesday, July 2, 2013 Page 19 partnerships. He stated saving SHAP was an example of collaboration with many governmental entities. Councilman Taylor spoke and mentioned the Millennial Mayors Congress. Councilman Taylor explained that he has recently been elected presiding officer of the Millennial Mayors Congress. The group discusses different ideas and regional issues that are important to young people. He does not see it as an extra layer of government. He sees it as a way to make local governments run more efficiently. Mayor Notte stated that with 11 communities, it is based on service-sharing efforts. He thinks it is important to be a part of it and share our experiences. Yes: Schmidt, Ziarko, Koski, Notte, Romano, Taylor. No: Smith. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Jeffery Norgrove spoke to thank Council for his appointment. He also discussed the issue of fireworks in the City. He suggested going in front of the State and filing a lawsuit against the ordinance. He suggested the City create a requirement that the ordinance be handed out at the time of purchase so all residents will be aware of the law and $500 citation for illegal fireworks. Mr. Lombardini spoke to congratulate the Police Department. The night before, a local restaurant was victim of an armed robbery. As of that afternoon, less than 24 hours later, a suspect had been identified, arrested, and charged in front of a judge. He suspects that not all crimes can be solved in less than 24 hours, however, he appreciates the message being sent to violent criminals, that they should just move on and choose another city. Mr. Gene Eichhorst spoke to ask what Council intends to do about Freedom Hill. They exceeded the decibel limits and the cutoff time, going past 11:00 pm. He would rather hear the fireworks going on than the noise from Freedom Hill. Mr. Harry Marchlones spoke about being a veteran and how he would like to hear the explosions stop. He used to work as a police officer in Warren and had to work on the 4th of July. He described how difficult it is as a police officer to catch residents in the act of shooting off fireworks. Mr. Joel Thomas stated that he agrees with Mr. Norgrove about fireworks. Regular City Council Meeting Tuesday, July 2, 2013 Page 20 Mayor Notte stated that Hillside has been living up to their settlement and that the City has close communication with Hillside and the County in regards to Freedom Hill. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL There was no report from Mr. Bahorski. There was no report from Mr. Vanderpool. Councilwoman Schmidt wanted to clarification about the amphitheater and bands playing in the park outside the amphitheater later than 11pm. Mr. Vanderpool stated there are only three festivals remaining the rest of the year. The City has very little control over the activity inside the park. The County is in charge of the events at the park. Councilwoman Schmidt thought that the settlement was not specific to the park. Mr. Vanderpool clarified the verbiage is specific to the amphitheater, however, the implied order from the judge was that the City shall have very little involvement inside the park to enforce activity in there. Mr. Bahorski stated that even though the settlement applied to the amphitheater, Judge Edmonds issued an injunction and was very clear that she did not want the City police department to be on the grounds at Freedom Hill. Judge Edmunds considered it to be a violation of the injunction. The City can’t send officers to the park unless summoned by the Sheriff. Councilwoman Schmidt would like to strongly encourage the City’s administration to forward comments to the County that they could be better neighbors on the front end of the park. Councilwoman Ziarko asked for clarification that the sound ordinance for the City does not apply to the front of the park at Freedom Hill because it is a County park. She has had complaints about gravel being dumped on the parking lot at 2:30 in the morning. She would like to know who has jurisdiction there at 2:30 in the morning to enforce the noise ordinance. Mr. Bahorski clarified by saying that it’s not that the City’s ordinances don’t apply, however, they must abide by the injunction by Judge Edmonds to stay off of the property. It’s an enforcement issue rather than whether the ordinance applies. The complaints should be forwarded to the County. Councilman Romano stated that unless you live in proximity to the park, it isn’t an issue. The people that live in the subdivisions adjacent to the park who are trying to enjoy a quiet, peaceful existence are being forced to deal with the noise coming from the park. Regular City Council Meeting Tuesday, July 2, 2013 Page 21 He thinks there should be a specific contact person for noise complaints with the County if the City can’t do anything to enforce it. Councilman Smith spoke about the legalization of fireworks in Michigan and how the 11pm curfew doesn’t do much for people going to bed at 9 or 10pm. He also spoke about the helplessness of the City’s police department to enforce the noise ordinance when they can’t step foot on the grounds. He stated we could regulate fireworks more. He rejects the idea that we don’t have a big enough police force to enforce the ordinance. He doesn’t think it’s necessary to raise the citation cost, but the existing cost should deter people from lighting off fireworks at the wrong time. Mayor Notte stated that most of the issues from the weekend were from Freedom Hill Park and not Hillside Productions, and that the County and Funfest need to be accountable for what goes on in the park. The County and Funfest are open to working with the City and the homeowners. ADJOURN Moved by Ziarko, seconded by Romano, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 10:19 p.m. MARK CARUFEL, City Clerk