City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, OCTOBER 15, 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 with the substitution of the blue sheet Resolution for consideration under Agenda item #4. Yes: All. The motion carried. REPORT FROM CITY MANAGER Mr. Vanderpool reported the final phase of the Oakland Macomb Sanitary Interceptor Repair project has begun and should be finished by the end of the season. The project provides for grout repairs to the sewer and lining of isolated sections. In addition, a new below ground structure will be constructed within the Edison Corridor, approximately half way between 15 Mile Road and 14 Mile Road. He explained the City has been working with the OMID team to best reduce the impacts to the Community as well as prepare for emergency situations. The County sent out notifications to adjacent properties to the project and contains further information on the project. Mr. Vanderpool reported the 37th Annual Children’s Halloween Party, for Sterling Heights’ children 10 years of age or younger, will be held Saturday, October 26th at the Recreation Center from 10:00 am to 12:30 pm and all activities will be open during this time period. Activities will take place both inside and outside, so please dress for the weather and remember to wear your Halloween costume. The costume parade will be held outside at 11:00 am. Children must be in costume to participate. The event also Regular City Council Meeting Tuesday, October 15, 2013 Page 2 features the Pumpkin Patch, the Scarecrow, cider and donuts, rides, music, candy and more. Mr. Vanderpool reminded residents of the upcoming Pride & SHINE Day scheduled for October 19th. Ms. Denice Gerstenberg, City Development Director, used a video presentation to highlight the Enhanced SHINE Program. Mr. Vanderpool thanked Denice Gerstenberg and the inspectors for their hard work on the program. Mr. Vanderpool showed a video that was presented at the Safe Streets symposium last week and stated the City staff is available to meet with any resident or business that has questions or concerns about the proposal. PRESENTATION Councilman Paul Smith presented the Nice Neighbor award to Freedom Christian Assembly Church, located at 41380 Ryan Road, for their work and generosity put forth in support of the 2013 Sterlingfest Art & Music Fair and SHINE program. Ms. Lauren Vance accepted the award on behalf of Freedom Christian Assembly Church. Dr. Christine Johns, Superintendent of Utica Community Schools, was present with Henry Ford High School Principal Kenneth Cucchi and Stevenson High School Principal Steven Pfannes, to accept a resolution congratulating the administrators, staff, parents and students of Henry Ford II High School and Adlai E. Stevenson High School upon their recognition as top 2,000 national high schools by Newsweek magazine. Dr. Johns and the Principals thanked the City for this recognition and talked about the great relationship they have with the Sterling Heights Police Department liaison officers, who provide a safe environment for our children. They thanked the City Council for helping to teach the students how City government runs. A commemorative banner was presented to Mayor Notte for display at City Hall. Moved by Schmidt, seconded by Ziarko, RESOLVED, to adopt the resolution congratulating the administrators, staff, parents and students of Henry Ford II High School and Adlai E. Stevenson High School upon their recognition as top 2,000 national Regular City Council Meeting Tuesday, October 15, 2013 Page 3 high schools by Newsweek magazine and receive a commemorative banner for display at City Hall as an acknowledgment of this outstanding achievement. ~ Resolution ~ A resolution congratulating administrators, staff, parents, and students of Henry Ford II High School and Adlai E. Stevenson High School on being recognized as top 2,000 national high schools by Newsweek magazine.  Sterling Heights students benefit from an exceptional array of educational opportunities provided by Utica Community Schools at both Henry Ford II High School (HFHS) and Adlai E. Stevenson High School (Stevenson High).  Today, students can participate in a wide-variety of exceptional educational programs, including advanced placement, an international baccalaureate program, comprehensive career and technical education programs, dual enrollment at major universities, and exemplary fine arts, athletic and extracurricular activities. Stevenson High is the only Macomb County high school offering the AVID program to promote additional college opportunities for its students.  The educational programs and dedicated effort by administrators, teachers, parents, and students have combined to create a positive educational environment at HFHS and Stevenson High where high academic achievement is a reality.  Newsweek magazine recently recognized HFHS and Stevenson High for educational excellence by naming both schools as top 2,000 national high schools. Newsweek bestows this distinction on high schools that rank high in the following academic criteria: college preparedness of students attending the high school; graduation rates; participation in college-level classes, such as advanced placement and international baccalaureate programs; and, acceptance into two- and four-year college programs.  This distinction would not be achievable without the work and dedication of Utica Community Schools Board of Education, Superintendent of Schools Dr. Christine Johns, principals Kenneth Cucchi and Steven Pfannes, the respective counselors and teaching staffs, and the parents and students of HFHS and Stevenson High. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Sterling Heights, County of Macomb and the State of Michigan, congratulates Utica Community Schools and the administration, faculty, staff, parents, and students of Henry Ford II High School and Adlai E. Stevenson High School on being recognized as top 2,000 national high schools by Newsweek magazine. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Sterling Heights to be affixed this 15th day of October, 2013. _______________________________________ Mark Carufel, City Clerk Yes: All. The motion carried. Ms. Kathryn Ribant Payne, Library Programming Specialist, introduced Mrs. Kathy Monac, president of the Sterling Heights High Noon Kiwanis Club of Sterling Heights. Regular City Council Meeting Tuesday, October 15, 2013 Page 4 Mrs. Monac presented $700 worth of materials in support of the Sterling Heights Public Library’s new Tech for Tots program. The donation included: Three (3) Leap Pad 2 tablets, with security devices; Educational games, and an iPod Touch and speaker for music at children’s programs. Ms. Payne thanked the Sterling Heights High Noon Kiwanis Club for their support of the Library. Moved by Romano, seconded by Schmidt, RESOLVED, to acknowledge and accept the donation to the Sterling Heights Public Library’s Tech for Tots Program by the Sterling Heights High Noon Kiwanis Club, 2335 Oakcrest Drive, Sterling Heights, Michigan. Yes: All. The motion carried. ORDINANCE INTRODUCTION 1. Mr. Vanderpool made a presentation explaining the amendment to the City Code and confirmation of the Administrative Code and Plan. He explained the City Code requires that the City Manager file an Administrative Code and Plan and organizational chart setting forth the City’s departmental organization, duties and functions of the administrative officers, deputies and subordinates, and describing the lines of authority and reporting responsibilities. Periodically, the positions set forth in the Administrative Code and Plan change due to restructuring, position elimination or position creation. As compared with prior years when substantial restructuring of the City’s departmental organization and administrative officer changes occurred, there are only minor changes associated with Administrative Code and Plan. Mr. Vanderpool stated the Administrative officer changes include:  Former Assistant City Manager and City Clerk Walt Blessed relinquished the duties of City Clerk and assumed the duties of Human Resources Director under the new administrative officer title of Assistant City Manager and Human Resources Director.  Former Purchasing and Risk Manager Mark Carufel filled the void created by Mr. Blessed’s change in job titles and duties by becoming City Clerk and retaining his Risk Manager duties under the new administrative officer title of City Clerk and Risk Manager. Regular City Council Meeting Tuesday, October 15, 2013 Page 5  Mr. Jim Buhlinger was hired to assume the former duties of Mr. Carufel as Purchasing Manager.  Due to lower wages negotiated with the MAPE Executive Unit and UAW Supervisory Units, these three administrative officer changes result in annual savings of approximately $77,000. Mr. Vanderpool pointed out over the last two years, the number of administrators has been reduced from 27 to 20, saving approximately $850,000 annually in wage and benefit costs. In addition, the transition plan for Directors and Managers has achieved an additional $500,000 in wage and benefit savings, resulting in $1.35 million total annual savings. Of the 201 full time positions eliminated to date, Director and Manager positions have been reduced in a greater proportion when compared to non-supervisory position reductions. The revised Administrative Code and Plan reflects the aforementioned changes. Confirmation of the proposed Administrative Code and Plan necessitates introduction and adoption of an ordinance amending Chapter 2, Article II, §2-18 and 2-19 of the City Code to incorporate these changes and he respectfully requests the Mayor and City Council approve the request as recommended. Moved by Romano, seconded by Taylor, RESOLVED, to confirm the City Manager’s Administrative Code and Plan effective October 15, 2013. Yes: All. The motion carried. Moved by Romano, seconded by Taylor, RESOLVED, to introduce an ordinance amending Chapter 2, Article II, §2-18 and 2-19 of the City Code to conform the listing of administrative officers to the Administrative Code and Plan. Yes: All. The motion carried. CONSENT AGENDA 2. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda: A. To approve the minutes of the Regular Meeting of October 1, 2013, as presented. B. To approve payment of the bills as presented: General Fund - $375,494.17, Water & Sewer Fund - $2,344,312.51, Other Funds - $3,272,875.96, Total Checks - $5,992,682.64. Regular City Council Meeting Tuesday, October 15, 2013 Page 6 C. RESOLVED, to split the award of the bid for police ammunitions as follows: (a) Simunition 9 mm FX Marking Cartridge to CMP Distributors, Inc., 16753 Industrial Parkway, Lansing, MI 48906; and (b) Hornady 80965 .308 Winchester 168 grain A-MAX TAP precision and Black Hills Gold Match 1C308BHGN4 .308 Winchester 180 grain Nosler AccuBond to Michigan Police Equipment Company, 6521 Lansing Road, Charlotte, MI 48813, at the respective unit prices bid for a two-year period. D. RESOLVED, to approve Traffic Control Order #6-78 to extend on-street parking on the north and south sides of Willesdon Square, west of Warwickshire Drive. E. RESOLVED, to receive the lawsuit, Raffo vs. City of Sterling Heights, et al; Macomb County Circuit Court Case No. 13-3179-NI. Yes: All. The motion carried. CONSIDERATION 3. Attorney Joe Shalom, representing H & S Banquets, was present with the current owner of 7 Star and the proposed owner of H & S Banquets. He stated every department of the City has approved this transfer. Mr. Joe Judnick stated that during the Zoning Board of Appeals meeting, residents complained about parking issues, early morning , and smoking, talking and loud music behind the building. He stated Mr. D’Angelo asked the owner if there was smoking in his establishment and the petitioner responded yes, hookah. Mr. Judnick addressed the health hazards of smoking / hookah and whether the petitioner has approval to smoke hookah. Mr. Mike Lombardini spoke in favor of the liquor license dance permit and stated the petitioner at the BZA hearing stated the early morning music and talking behind the building was the cleaning crew. He spoke about welcoming a diverse community. He stated the plaza is in desperate need of business and he is in favor of anything that will support business. Moved by Taylor, seconded by Notte, RESOLVED, that the request from H & S Banquets, Inc. to transfer ownership of 2013 Class C liquor license with dance- Regular City Council Meeting Tuesday, October 15, 2013 Page 7 entertainment permit from 7 Star, Inc. located at 2209 Eighteen Mile Road, Sterling Heights, MI 48314, Macomb County be considered for approval. Councilman Taylor pointed out the approval by the City Departments and stated this applicant has a long history of liquor licenses and operating facilities with liquor licenses. He is very comfortable with this request and sees no reason to vote against it. Mayor Notte has no problem with the request and sees no reason to deny it. He pointed out the Council has a limited role in making any big decision on liquor license transfers with the State change. Councilwoman Koski referred to the backup, which states the Michigan Liquor Control Commission approved the subject transfer of the Class C liquor license on September 25, but they have not issued it yet. She asked Mr. Bahorski to explain why they have not issued it. Mr. Bahorski responded they could ask the petitioner, but the MLCC no longer waits for approval from the City and he is not clear on how much weight they give to the City’s opinion. Councilwoman Schmidt asked the hours of operation. Mr. Hethem Mrugi responded 4 pm to 2 am. Councilwoman Schmidt wanted it clarified that anyone there after 2 am would not be served or consuming alcohol and would only be the employees. Mr. Mrugi stated that is 100% true. Councilman Smith stated the business is currently doing business under one ownership. This is only a change of ownership and the business will continue as is. We are not creating a new establishment. He questioned whether this is true. Mr. Shalom pointed out it is a transfer of an existing license to a new owner. Councilman Smith was under the impression that a person could finish their drink if it was after 2 am and the establishment could serve food until dawn as long as no more alcohol is sold. Mr. Shalom responded a special permit is required if people remain on the premises after 2 am. Only employees and staff can stay after 2 am. He stated with regard to the Michigan Liquor Control Commission, they did approve the Regular City Council Meeting Tuesday, October 15, 2013 Page 8 transfer of the license in September, but every approval states the license is subject to the local ordinances and regulations of the City and they want that in place before they receive the license. Councilman Smith pointed out the health hazards of smoking and wants to see the smoking ban continue in public places. Councilwoman Koski stated the restaurant is currently being operated as a restaurant/bar and she inquired whether it was going to remain a restaurant/bar or be a full time banquet facility. Mr. Shalom responded the bar/restaurant would stay; the banquet facility is an add-on with a separate door. Councilman Romano discussed the smoking and inquired where the people smoke. Mr. Shalom responded they do not allow smoking there and will not allow it going forward. Councilman Romano questioned the owner of the building. Mr. Shalom responded it is a corporation and Mayor Notte added Shostak Brothers owns the building. Councilman Romano questioned the length of the lease. Mr. Shalom responded they have 5 years, with 2 five-year options. Councilman Romano questioned whether the servers in the banquet hall would be serving alcohol and if they took the TIPS training. Mr. Shalom responded every server would be required by the state to pass the TIPS training and arrangements have been made for them to be TIPS trained. Councilman Romano expressed concerns with the big windows and inquired whether it was just decorative. Mr. Shalom responded it is decorative and in a shopping center and not a typical banquet hall. Councilman Romano questioned whether the patrons would be allowed to stay in the banquet facility after the bar closes at 2 am and Mr. Shalom indicated they would not be allowed to remain in the building after 2 am since the entire four walls are licensed. Only employees could stay after 2 am. Regular City Council Meeting Tuesday, October 15, 2013 Page 9 Councilman Romano asked Sgt. Belmonte about an incident from 1995 and inquired whether this would hold up the license. Sgt. Belmonte responded it would not preclude them from moving forward. Councilman Romano questioned monitoring of the no smoking laws and Sgt. Belmonte responded they have no reason to believe there would not be cooperation by this business and this owner and they would monitor them the same as any other business. Yes: All. The motion carried. 4. Mr. Vanderpool explained on September 20, 2013, Macomb County Executive Mark Hackel requested a position statement from the City of Sterling Heights on the application by Lenox Development, LLC to amend the Macomb County Solid Waste Management Plan to facilitate the planning, location, installation and operation of a new landfill facility in Macomb County. Specifically, the Macomb County Executive inquired: A. Whether Sterling Heights supports the proposed amendment to the Solid Waste Management Plan to facilitate a second landfill facility in Macomb County? B. Whether Sterling Heights has an interest in being a host community for the proposed new landfill facility or expanding an existing landfill? The Macomb County Executive advises that at this time, there is no legal duty requiring that Macomb County proceed with the amendment process for the following reasons: A. Sufficient five (5) and ten (10) year landfill capacity is available at the existing Pine Tree Acres facility in Lenox Township and at out-County landfills that accept waste generated within Macomb County; B. No Macomb County municipality has requested an amendment to the Solid Waste Management Plan; C. The Michigan Department of Environmental Quality is not initiating an amendment to the Solid Waste Management Plan at this time. He pointed out the City of Sterling Heights has consistently opposed the Solid Waste Management Plan as adopted in 1999 on the basis that it fails to provide for siting criteria and a site review process which are fundamental to the proper evaluation of any request to amend for the purpose of planning, locating, developing and operating a second Regular City Council Meeting Tuesday, October 15, 2013 Page 10 landfill within Macomb County. The incorporation of siting criteria and a site review process further assures all interested parties a fair and impartial process. Had the Solid Waste Management Plan been previously amended as requested by the City, Sterling Heights and all other interested parties would be in a much better position to evaluate the merits of the proposed application by Lenox Development, LLC. In the absence of siting criteria and a site review process, any decision on the proposed amendment is inherently arbitrary and subject to challenge. Sound public policy dictates that Solid Waste Management Plan first be considered for amendment to incorporate the criteria and process under which any proposal for development of a new landfill facility in Macomb County can be properly evaluated. Mr. Vanderpool stated for all the foregoing reasons, City Administration is recommending adoption of a resolution providing for the following: A. The City Council reiterates its call for and support of an amendment to the Solid Waste Management Plan to incorporate appropriate landfill siting criteria and a site review process. Mr. Vanderpool pointed out in 2007, the City went on record saying we don’t oppose competition, but the key is to have this siting criteria and site review in place first. B. Once objective landfill siting criteria and a site review process have been established, Macomb County and its constituent municipalities, businesses and residents will be in a better position to evaluate the current proposal or any future proposals. C. A statement declaring that the City has no interest in serving as a host community for a new landfill to be sited in Macomb County. As a mature, full-developed municipality, the City does not have the requisite open space to facilitate the development of a landfill facility. There is no active or closed landfill facility within the City that is amenable to an expansion. Mr. Vanderpool added since this material was presented, there is a blue sheet item to amend City Administration’s recommendation and the subsequent resolution based on the information that was reviewed more thoroughly over the last couple days. In the host agreement that is proposed, the agreement indicates that the City of Sterling Heights is identified as one of two possible sites for a proposed solid waste processing plant, better Regular City Council Meeting Tuesday, October 15, 2013 Page 11 known as a transfer station. It is City Administration’s understanding that Lenox Development, LLC is pursuing amendments to Macomb County’s Solid Waste Management Plan to provide for a transfer station in the current County even if the proposed landfill is rejected. He stated the amended resolution reads as follows: BE IT FURTHER RESOLVED, that the City of Sterling Heights has no interest in being the host community for the new landfill or solid waste processing facilities being proposed for Macomb County through amendments to the County Solid Waste Management Plan. Mr. Jeffrey Norgrove spoke against a landfill in the City of Sterling Heights, stating there is no need for it or any place to put it. He hopes the City Council would tell Mr. Hackel to look at another City. Ms. Linda Godfrey stated she sent an email to every Council member and Mayor Notte, with a letter from a Macomb County Commissioner (who has been involved for many years with the solid waste program for the County) stating he is not in favor or any community signing on to any type of a resolution or statement such as the one being proposed this evening. She inquired why the letter from Mr. Hackel addresses Rizzo. Ms. Godfrey stated this is not in the best interest of all the people. Moved by Ziarko, seconded by Notte, RESOLVED, to adopt the resolution responding to a request by the Macomb County Executive for a position statement from the City of Sterling Heights on the proposed amendment to the Macomb County Solid Waste Management Plan to facilitate the planning, location, installation and operation of a new landfill facility. Councilwoman Ziarko stated before this amendment, she was under the impression that the City of Sterling Heights was taking a neutral position until some type of citing criteria and site review was established by the County. She inquired how this action tonight affects the City’s neutral position. Mr. Bahorski responded the neutral position is just a reflection that the City has long had that the plan should incorporate solid criteria, much like we have in our ordinances, to provide for a thorough practice in developing a second alternative landfill that is fair to everybody. With the current plan, there is no provision for a second landfill. He pointed Regular City Council Meeting Tuesday, October 15, 2013 Page 12 out in 2007 when this was discussed, it was recommended against Rizzo Services because it was not properly zoned and not conducive to development as a transfer location. Mr. Bahorski stated if the City is taking the position that we could not host a landfill based on the 2007 position, we have no interest in being the host for a transfer facility. Councilwoman Ziarko questioned what a transfer station is, the type of work they do and whether there is another one in Macomb County. She also inquired what other communities have done about the resolution and letter from County Executive Hackel. Mr. Vanderpool explained the function of a transfer station, stating it is a collection point for wet garbage that is stored at the transfer site until such time that it could be compacted and transferred to a different location. With regard to other communities, he doesn’t know what all 24 of them have done. Some have provided written positions to the County Executive. Mayor Notte stated the City maintains the same position they took in 2007. We do not want to be a host city for a landfill or a transfer station. Councilman Taylor questioned what would happen if the City Council didn’t pass the resolution or respond to Mr. Hackel’s request. Mr. Vanderpool responded he is not aware that we are legally compelled to respond to his request for an official statement, but Mr. Hackel might not be aware of the City’s position since 1999 and most recently in 2007. Councilman Taylor inquired what obligation the County is under to honor the request from the cities if they suggest they want to have citing criteria in the new plan and not want to be a host city for either a landfill or a transfer station. Mr. Vanderpool responded the City wants to make sure Mr. Hackel understands our request; he may not be aware that we have been opposed and find it difficult to support a transfer station, as proposed by Rizzo Services on their site in Sterling Heights. Councilman Taylor is in favor of the resolution as presented, especially with the blue sheet changes. He is opposed to a transfer station, but stated if we are going to be stuck with it, he would hope there is something the City could do to negotiate a certain percentage be given to the City instead of the County. Regular City Council Meeting Tuesday, October 15, 2013 Page 13 Councilman Romano is in favor of the resolution. He inquired what is at the 6200 Elmridge Drive address at this time. Mr. Vanderpool responded there are some administrative offices there and it is being used as a transfer station for recycling materials. Councilman Romano questioned whether there have been recent complaints on this property. Mr. Vanderpool responded there were complaints a few years ago, but Rizzo addressed them and now it is a clean recycling operation. Councilman Romano also believes the City should be compensated accordingly if we are stuck with this transfer station. Councilman Smith pointed out the location of this property and stated there are no immediate residential neighbors. He questioned the short period of time given and stated there is not enough time to discuss the issue. He questioned the City Attorney about the impact of the City Council’s decision. Mr. Bahorski responded the County Executive is responding to a submission by Lenox Development, LLC to amend the plan. There is no standing Macomb County Solid Waste Management Plan at this time and Mr. Hackel is soliciting feedback from the municipalities in Macomb County to determine whether he should convene the committee. There is no legal obligation to do it. No community in Sterling Heights has petitioned to amend the plan and there is still plenty of room at Pine Acres for 5-10 years. The MDEQ has indicated no reason to amend the plan. Councilman Smith moved to postpone this item of business for ninety (90) days. His motion lost for lack of support. Councilwoman Schmidt inquired whether this resolution would be a non-binding resolution because it is the Council’s opinion or wish and if the County Executive has power to grant a variance for our community or rezoning for our community. Mr. Bahorski responded he has not looked at the question or the environmental law and if that provides for an exemption that preempts local zoning ordinances, so he is not sure he wants to render an opinion on that particular point. He stated if Mr. Hackel got a Regular City Council Meeting Tuesday, October 15, 2013 Page 14 community that said they wanted to be a host community and amend the plan, that could trigger him opening up the plan and starting the process to evaluate the amendment. Councilwoman Schmidt stated she is comfortable with the motion. Councilwoman Koski is in favor of the resolution because the County Executive is looking for feedback as to what direction he should take. She believes this gives Sterling Heights the opportunity to let Mr. Hackel know the City’s position that we do not want to be a host city. Mayor Notte pointed out he was on the Solid Waste Management Committee when it was an active committee and they worked on the five-year plan for solid waste. He stated our resolution is not binding and it is only giving feedback to Mr. Hackel to see if he wants to amend the plan. Yes: All. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Mike Lombardini – Consideration of a change for City Council elections to even years instead of odd years. Mr. Nate Shannon – Supports upcoming millage. Ms. Linda Godfrey – SMART meters; Breakdown of projected costs per year (based on the $157 increase to the resident) if millage passes for all dedicated levies within the City through the six year period; Calculation of what the millage will cost the residents over the six year period with the increase in assessed value and the amount of revenue the City would receive over the six year period broken down year by year. Mr. Sadeer Farjo – Wages of Police and Firefighters compared to the average household income for residents; Separation of millage question to give residents a choice; Police time card scandal. Ms. Carmela Nakamari – Importance of City employees to retain services and keep the residents safe. Mr. George O’Brien – In favor of separate millages; Wages and salaries of Police and Fire Department employees; Time card fraud; Retired employees brought back to work; Even year elections. Ms. Sandra Emerick – Millage issue/effect on public safety and residents if it is defeated. Regular City Council Meeting Tuesday, October 15, 2013 Page 15 Mr. John Tackle, representing the Clinton River Watershed Council. Provided information about the Clinton River and volunteer activities, and thanked City Administration and Council for the long standing membership and partnership. Mr. Jeffrey Norgrove – Frisbee golf course; Residents need to look to the future of the City. Mr. Joe Rimarcik – W-2’s of Police and Firefighters; staffing levels. Mr. Joe Judnick – Against the millage increase; Wages and Salaries of Police and Firefighters; Separate millage questions. Ms. Jennifer Abed - Open communication; Wages out of line; Political signs. Mr. Greg Thomas – Safety of residents and investment in the City. Mr. George Hamcik – Informing the voters on the millage issue; DROP program. Mr. Chris Kremheimer - Councilman Smith’s comments during Council forum; Support for millage. Mr. Guilio Russo – Millage issue/past surplus in the City/present condition of the City; Helping the business community in the future; SHINE program. Mayor Notte stated all speakers that come up to the podium have a right to their opinion, but they don’t have a right to their facts and figures. Councilman Taylor felt that most of the facts and figures presented this evening were pretty accurate. He believes there is a structural imbalance in what the City brings in and what is paid out. The wages to the Police and Fire are unsustainable. We can either cut costs or raise revenue. We have cut costs as much as possible in all other departments, except police and fire. He stated to the residents the City Council couldn’t reduce the wages and benefits of the police and fire departments because of the state law. He pointed out to the residents if they vote no on the millage, they would still pay the same taxes as they pay this year, 45 police officers would be laid off and 20 firefighters would be laid off and roads would continue to deteriorate. Councilman Taylor stated that he hates tax increases, but there are only two options. Councilwoman Ziarko pointed out the City Council has to do what is best for 130,000 residents. She pointed out all the services the City provides and stated the services are shared collectively with the residents. The City Council is giving the residents a voice in Regular City Council Meeting Tuesday, October 15, 2013 Page 16 the future of the City. Councilwoman Ziarko addressed the time card scandal, stating we all know what happened. She stated we could not let the actions of 25 people affect the 130,000 residents. She discussed the City’s bond rating of AA+ and the importance of our ability to pay our bills. The City is providing a lot of services for a very low rate and it is up to the community to decide which way to go. Councilwoman Ziarko discussed the residency clause and pointed out it was put to a vote and the people voted to allow employees to move outside the City limits. The City Council has done everything possible to bring things into balance. There have been cuts in every department, except police and fire and there have been no raises for the past six years. What went wrong was the housing market and Proposal A. Councilwoman Ziarko pointed out to the residents it is $157.00 a year or $13.00 a month. Councilwoman Koski asked Mr. Vanderpool to address even year elections and the time card issue and for Mr. Baker to explain when the City would run out of fund balance if the millage doesn’t pass. Councilwoman Koski stated she is in favor of the millage and has already voted. She believes it is necessary and wants Administration to provide residents with the actual dollar costs and where the money would go and how much would be generated the second year, even though we don’t know what the rate of inflation would be. In regard to a Frisbee golf course, she questioned whether that is an item for a future strategic planning session. Councilwoman Schmidt discussed the elimination of the DROP program and stated the officers and firefighters that were already in the program remained in the program. Those firefighters that were not in the DROP program could not get into it. Councilwoman Schmidt stated she is in favor of the millage because we need to invest in each other. Everyone needs to do what is right for their house, but the City Council has to look at all 130,000 residents. Councilman Smith stated in regard to residency, 15 out of 90 firefighters live in the City and they have a right to live wherever they want according to state law. In reply to the person that mentioned his statistics during the campaign forum, Councilman Smith stated he was referring back to a spreadsheet that he composed by Regular City Council Meeting Tuesday, October 15, 2013 Page 17 going back on all City budgets. He stated he had a ten-year spreadsheet that showed the City in the hole over ten years. In total, there were seven budgets that were in the red and four in the black or nearly balanced. Councilman Smith stated the City Council spent $7.6 million more than what came in. He pointed out we have twelve unions and eleven of the twelve made some minimal concessions. He discussed the time card issue and stated the City didn’t get back all it lost. Councilman Smith referred to two lawsuits that were in the City’s favor and stated some of the doom and gloom has gone away. He believes there are dozens of ways to fix a shortfall, other than the laying off of 45 police officers and 20 firefighters. Councilman Smith discussed the Headlee amendment and Proposal A and stated the limitation only applies to single residential homesteads. Councilman Smith discussed the process of absentee ballots and the number of people who process them. He stated there were a huge percentage of people that voted absentee in the last election. His concern is with 8,354 ballots in a small room off the library and he doesn’t believe it’s a very reliable operation. He advised people they could drop off their absentee ballots on the day of the election up until 8:00 p.m. at the City Clerk’s Office, as stated by the City Clerk. Councilman Smith discussed the personal property tax forecast to be phased out in 2016 and stated this is only 2013. We are putting in a tax to replace the lost revenue that is still three years away. Councilman Romano inquired why the residents would have to pay a fee to opt out of the SMART meters. Councilman Romano discussed the great services provided by the City as the reason he moved to Sterling Heights. In regard to the police and firefighters that live outside the City, he believes it’s because it was very expensive to own a home in Sterling Heights. He discussed the wages of the police and firefighters and pointed out the City is bound by state law. He stated people have to vote their conscience and decide what is important to them. Mayor Notte stated he is in favor of the millage. A yes vote will cost the residents $157.00 a year for six years and there would be no layoff of 45 police officers or 20 firefighters. It will not change the salaries of any police and fire personnel and it would not change the retirement or pension for any police or fire personnel. A yes vote would maintain public safety. Regular City Council Meeting Tuesday, October 15, 2013 Page 18 Mr. Vanderpool addressed the SMART meters and stated the City Council approved a moratorium on them until such time that DTE approved an opt out clause. DTE has since approved an opt out clause and there is a fee for it. Mr. Vanderpool addressed the time card issue and stated this was an isolated case and in no way reflects on the organization or the department. There have not been any incidents since that time and not before that time. The City did recover the whole amount and then some. The discipline was severe and quick and the City did the right thing. In regard to the W-2 information that was presented, Mr. Vanderpool stated in many cases the W-2 amounts were one-time expenses that occurred at the time of retirement. It was not a reflection of their salaries. He stated the reason so many people retired was because they wanted to go out under the old agreements. He stated there are an additional 50 police officers and 30 plus firefighters that will be retiring over the next five years. Mr. Vanderpool showed a slide of the actual salaries of the police and firefighters and pointed out overtime could add to these amounts. In terms of the average pension for police and fire, he stated the average in 2012 is $52,854. Mr. Vanderpool assured the residents the root of the problem is the collapse of the housing market and not the pay and benefits and it will take decades to recover from it. He also mentioned the loss of $33 million in state shared revenue as another reason. Mr. Vanderpool addressed the very aggressive financial plan that the City undertook to address these losses. He stated to the residents, the reality is that we are governed by Public Act 312 and the arbitrator will make the final determination as it relates to police and fire. The bottom line is we have to keep cutting or recover some revenue. Mr. Brian Baker, Finance & Budget Director, stated the latest estimates for the inflationary rate is 1.6%, far below the average of 2.5%. This would be $.20 a month increase for this millage proposal and over six years, an average of $4.00 the next year and then lower than that. Mr. Baker showed a property tax comparison chart that showed the City of Sterling Heights at the bottom with 12 mills and stated even with the millage increase we would still be the lowest. He affirmed the average pension for police and fire is $52,000. In terms of health care, they pay the same as other employees. Regular City Council Meeting Tuesday, October 15, 2013 Page 19 In regard to the clothing allowance question by Mr. O’Brien, Mr. Baker pointed out it is not only for police and fire, it includes the DPW also. Mr. Baker discussed the W-2 figures as discussed by Mr. Rimarcik and clarified the figures for the fire officers that go out on every run. He pointed out the fixed costs to fund the long-term legacy costs have gone up from $6 million to $22 million and a lot of that has been in the police and fire departments. Mr. Baker stated the City should be congratulated for funding those long-term costs. Mr. Baker stated in terms of fund balance levels, the City needs a minimum of 15% in the general fund. We have $5 million and we need $16 million. Also, we need $5 million in fund reserves and it will take a year or year and a half before we go below the minimum fund balance levels if the millage doesn’t pass. Mr. Baker stated there was an issue about the City funding and the City being in a deficit position for the past ten years. He stated some of the numbers as presented by Councilman Smith were not correct because some included transfers out and some did not. Also, almost 100% was a result of the water and sewer fund because of depreciation. Mr. Baker stated revenues today are below what the City collected ten years ago. ADJOURN Moved by Ziarko, seconded by Schmidt, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 11:59 p.m. MARK CARUFEL, City Clerk