City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, NOVEMBER 19, 2013 IN CITY HALL Mayor Richard J. Notte called the meeting to order at 7:30 p.m. Mayor Notte led the Pledge of Allegiance to the Flag and Mark Carufel, City Clerk, gave the Invocation. Council Members present at roll call: Deanna Koski, Richard J. Notte, Joseph V. Romano, Maria G. Schmidt, Doug Skrzyniarz, 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 stated in observance of Thanksgiving, City offices would be closed for business on Thursday, November 28 and Friday, November 29 as an employee unpaid holiday. The municipal offices include City Hall, Public Library, Parks & Recreation Center, Senior Active Life Center, 41-A District Court and the Nature Center. Hours of operation will resume on Monday, December 2. Regular City Council Meeting Tuesday, November 19, 2013 Page 2 Mr. Vanderpool reported the City’s refuse collection would be delayed one day – Thursday’s collection (November 28) will be on Friday (November 29) and Friday’s collection would be on Saturday (November 30). Mr. Vanderpool reported the separate collection of yard waste for the 2013 calendar year ends Friday, December 6, 2013 and resumes March 31, 2014. Mr. Vanderpool reported on the upcoming Christmas Holiday events: DPW’s Annual Clothing Drive to be held on Saturday, December 7 at 9 am – 2 pm at the Public Works Building on 18 Mile Road. Donations of canned food and other non- perishables will be accepted through Monday, December 10. The 36th annual A Sterling Christmas to be held on Saturday, December 7, 2013 at 5:45 pm – 8:30 pm in Dodge Park. The Official Ceremony will begin at 6:00 pm with entertainment, the lighting of holiday decorations and the arrival of Santa Claus. Activities include pony rides, a petting farm, wagon rides, carousel and caroling around a campfire. Mr. Vanderpool reported, at the request of the Library Director, on a unique program called Desert Angels. He listed various items they are seeking for men and women in the military and invited residents to get involved. He pointed out the St. Lawrence 8th grade Confirmation Class is hosting a packing party on December 8th for anyone who wishes to help. PRESENTATION Councilwoman Ziarko presented the Nice Neighbor award to Annette and Chris Rolka, nominated by their neighbor, Mr. Banard Simpson. Regular City Council Meeting Tuesday, November 19, 2013 Page 3 PUBLIC HEARING 1. Economic Development Manager Barry Hicks made a presentation as it relates to the application by United Machining, Inc. for an Industrial Facilities Tax Exemption Certificate at 6300 18 ½ Mile Road. The petitioners were present, along with Roxanne Reeder from the Assessing Office. Mr. Hicks stated United Machining has been located in Sterling Heights for 15 years. They are applying for a fifty percent tax abatement for a proposed personal property investment of $3.5 million at 6300 18 ½ Mile Road. He pointed out if the IFEC were approved by the City Council, it would result in a 50% personal property tax abatement on only the new investment. The company will continue to pay 100% of their existing real and personal property taxes. He stated the proposed personal property investment would generate an estimated increase of $49,000 in new City tax revenue over the recommended seven-year tax abatement term. Mayor Notte opened the public hearing. There was no audience participation. Mayor Notte closed the public hearing. Moved by Romano, seconded by Taylor, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by United Machining, Inc., at 6300 18 ½ Mile Road is hereby approved for a period of seven 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. Regular City Council Meeting Tuesday, November 19, 2013 Page 4 Councilman Romano inquired whether the petitioner had a facility in Ontario. It was indicated that they did. Councilman Romano hoped they would move that facility to Sterling Heights. Councilman Taylor appreciates the fact that this company continues to invest in Sterling Heights and hoped the City Council could continue to assist them. Yes: All. The motion carried. 2. Economic Development Manager Barry Hicks made a presentation as it relates to the application by Acra Grinding Company for an Industrial Facilities Tax Exemption Certificate at 40597 Brentwood Drive. Mr. Tim Wosley and Mr. Mike Dougherty were present. Mr. Hicks pointed out Acra Grinding Company has been in business since 1972 and has for the past 25 years operated at 40597 Brentwood Drive. The applicant is applying for a 50% tax abatement for a proposed real property investment of $180,000 and a personal property investment of $1.1 million, for a total investment of $1.3 million. He noted that if the IFEC were approved by the City Council, it would result in a 50% personal property tax abatement on only the new investment. The company will continue to pay 100% of their existing real and personal property taxes. This proposed real and personal property investment would generate an estimated increase of $20,000 in new City tax revenue and $52,000 in new total tax revenue over the recommended seven-year tax abatement term. Mr. Hicks pointed out the addition of five new jobs at this facility. Mayor Notte opened the public hearing. There was no audience participation. Regular City Council Meeting Tuesday, November 19, 2013 Page 5 Mayor Notte closed the public hearing. Moved by Schmidt, seconded by Romano, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by Acra Grinding Company at 40597 Brentwood Drive is hereby approved for a period of seven 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 thanked Acra for reinvesting in this community and adding five new jobs. Yes: All. The motion carried. 3. Economic Development Manager Barry Hicks made a presentation as it relates to the application by U.S. Farathane, LLC to transfer IFEC No. 2012-348 at 38000 Mound Road and IFEC No. 2012-349 at 42155 Merrill Road. He pointed out the transfer is the result of a corporate restructuring of U.S. Farathane Corporation and pursuant to the stock purchase agreement, the Applicant acquired all of the assets and liabilities of U.S. Farathane Corporation, including the personal property assets subject to IFEC No. 2012-348 and IFEC No. 2012-349 as approved by the City Council on September 18, 2012. He pointed out this is not a new request, only a transfer. Mayor Notte opened the public hearing. Mr. Jeffrey Norgrove asked that in the future the presentations on two separate agenda items not be lumped together. Mayor Notte closed the public hearing. Regular City Council Meeting Tuesday, November 19, 2013 Page 6 Moved by Ziarko, seconded by Schmidt, RESOLVED, to approve the application to transfer Industrial Facilities Tax Exemption Certificate No. 2012-348 at 38000 Mound Road from U.S. Farathane Corporation to U.S. Farathane, LLC and authorize the Mayor and City Clerk to sign, as applicable, all documents required in conjunction with this approval. Councilman Ziarko stated she is comfortable with this request since nothing has changed; it is just a matter of changing ownership. Councilman Romano inquired whether the petitioner was present. It was indicated that he was not. Councilman Romano inquired whether there was an advantage to going to an LLC. Mr. Bahorski responded the applicant would be the best person to answer that question. He pointed out under state law because the entity did change they would need to transfer the certificates. He is not sure about the actual reason behind the corporate restructuring. Councilman Romano moved to postpone action on this agenda item until the petitioner could answer the question. His motion lost for lack of support. Vote on motion to approve the application to transfer IFEC No. 2012-348: Yes: Ziarko, Schmidt, Skrzyniarz, Taylor, Koski, Notte. No: Romano. The motion carried. 4. Mayor Notte opened the public hearing on the application by U.S. Farathane, LLC to transfer IFEC No. 2012-349 at 42155 Merrill Road. There was no audience participation. Mayor Notte closed the public hearing. Regular City Council Meeting Tuesday, November 19, 2013 Page 7 Moved by Ziarko, seconded by Schmidt, RESOLVED, to approve the application to transfer Industrial Facilities Tax Exemption Certificate No. 2012-349 at 42155 Merrill Road from U.S. Farathane Corporation to U.S. Farathane, LLC and authorize the Mayor and City Clerk to sign, as applicable, all documents required in conjunction with this approval. Yes: Ziarko, Schmidt, Skrzyniarz, Taylor, Koski, Notte. No: Romano. The motion carried. CONSENT AGENDA 5. Mr. Guilio Russo requested an explanation on Item D. Mr. White requested an explanation on Items E and G. Mr. Vanderpool stated in regard to Item D, M & N Plastics is in the process of putting in an addition on their building and they have to relocate a fire hydrant. In regard to Item E, Mr. Vanderpool pointed out this is routinely done every year; the City Council has to approve a Municipal Street Maintenance Agreement, whereby the County gives the City an agreement to maintain the right of way. With respect to Item G, Mr. Vanderpool pointed out this is routine as well; it is for computer replacements. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda: A. To approve the minutes of the Regular Meeting of November 6, 2013, as presented. B. To approve payment of the bills as presented: General Fund - $395,559.49, Water & Sewer Fund - $68,276.39, Other Funds - $1,076,367.96, Total Checks - $1,540,203.84. Regular City Council Meeting Tuesday, November 19, 2013 Page 8 C. RESOLVED, to approve the contract, #13-5474, between the Michigan Department of Transportation and the City of Sterling Heights for the installation of right turn lanes on 15 Mile Road at Dodge Park and Maple Lane Drive, City Project #12-233, and authorize the Mayor and City Clerk to sign the contract on behalf of the City. D. RESOLVED, to direct the City Attorney to prepare the necessary agreement to vacate a portion of the existing water main easement for the proposed M & N Plastics Building Addition, Section 4, SPR-3354, and the Mayor and City Clerk are hereby authorized to sign the Agreement on behalf of the City. E. RESOLVED, to approve the Municipal Primary Street Maintenance Agreement between the City of Sterling Heights and the Macomb County Department of Roads for the period October 1, 2013 to September 30, 2014, and authorize the City Manager and City Clerk to sign the Agreement on behalf of the City. F. RESOLVED, to adopt a resolution authorizing a Stormwater, Asset Management, and Wastewater (SAW) Grant Agreement between the Michigan Department of Environmental Quality (MDEQ) and the City of Sterling Heights for development of an asset management plan for critical segments of the City’s sanitary and storm sewer systems. G. RESOLVED, to split the award of the bid for computer equipment as follows: (a) To Zones, Inc., 1102 15th Street SW, Suite 102, Auburn, WA 98001, based upon unit prices bid for the Dell OptiPlex 7010 Desktop Computer System (per specifications) for a one-year period; and, Regular City Council Meeting Tuesday, November 19, 2013 Page 9 (b) To Dell Marketing, L.P., One Dell Way, RR8-06, Round Rock, TX 78682, based upon unit prices bid for the Dell Latitude E5530 Laptop Computer System (per specifications) for a one-year period. H. RESOLVED, to: (A) Accept the proposal by Absolute Security & Investigations, Inc., 314 West Walton Blvd., Pontiac, MI 48340 for the installation of a surveillance camera system upgrade at the Police Department in the amount of $58,778.50; (B) Approve the purchase of surveillance camera equipment and accessories for installation at City Hall, the Library and Department of Public Works facilities in the cumulative amount of $41,221.50; (C) Approve a budget amendment in the amount of $100,000 to reflect use of $29,389.25 Drug Forfeiture Funds, $50,000 in RAP grant revenues and $20,610.75 from Capital Project Fund reserves. I. RESOLVED, to award the bid for Storage Units for the Sterling Heights Police Department’s Special Response Team to Rayhaven Group, Inc., 22122 Telegraph Road, Southfield, MI 48033, at unit prices bid. Yes: All. The motion carried. CONSIDERATION 6. Mr. Barry Hicks, Economic Development Manager, made a presentation on the request by United Machining, Inc. for an extension of the term of Industrial Facilities Tax Exemption Certificate #2011-515 at 6300 18 ½ Mile Road. He explained that City Regular City Council Meeting Tuesday, November 19, 2013 Page 10 Council approved an Industrial Facilities Tax Exemption for a term of two years for this company based upon a personal property investment of $4.6 million and the creation of 56 new jobs. Despite the fact that the Applicant was entitled to a recommended eleven- year IFEC term, the City Council could not exceed the two-year remaining lease term, based upon State Tax Commission Rule 56. On August 7, 2013, Applicant made application to extend the term of IFEC #2011-515 for seven additional years since they had signed an amendment extending the term of its real property lease at 6300 18 ½ Mile Road by seven years and would be entitled to make this application to extend the existing IFEC term based on state law and the City’s Industrial Facilities Tax Abatement Program Guidelines. Moved by Taylor, seconded by Ziarko, RESOLVED, that the application for an extension of the personal property component of Industrial Facilities Tax Exemption Certificate #2011-515 by United Machining, Inc. at 6300 18 ½ Mile Road is hereby approved for a period of seven 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. Councilman Taylor pointed out this is only an extension on something that has already been approved. Yes: All. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Jeffrey Norgrove – Welcome to Councilman Skrzyniarz; Development of Frisbee Golf Course in Nelson Park South. Regular City Council Meeting Tuesday, November 19, 2013 Page 11 Mr. George O’Brien – Employee costs/information in City Magazine; Number of Sergeant positions in Police & Fire Departments; Cost savings from last two labor group negotiations. Mr. Vanderpool responded to statements made by Mr. O’Brien. He discussed Public Act 312, which governs Police and Fire and stated the City is competitive with other communities in the pay range. He pointed out there are 140 Police Officers and 24 Sergeants. Mr. Vanderpool stated in regard to pension and retiree health care, the City continues to make its required contributions to those funds. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL There was no report from Mr. Bahorski or Mr. Vanderpool at this time. Councilman Taylor pointed out to Mr. O’Brien that an average city with a police force employs 2.3 police officers per 1,000 residents. In Sterling Heights, we have 1.3 per 1,000 residents. Costs are higher from a personnel standpoint, but when you factor in the ratio of police officers to residents, the cost would be much more. In regard to Mr. O’Brien’s remark about the number of police Sergeants, he is not aware of what the proper ratio should be. Councilman Taylor stated to Mr. O’Brien he would appreciate if he could come up to the podium and tell the City Council what another community is doing and how that might work in Sterling Heights. Councilwoman Schmidt made a point of clarification – there was reference made to a billboard truck driving around on Election Day and she believes that the Police Officers Association and unions and Firefighters union paid for that truck. She asked Mr. Vanderpool to confirm that the City did not pay for that truck. Regular City Council Meeting Tuesday, November 19, 2013 Page 12 Mr. Vanderpool responded the City did not pay one penny for that truck. Councilman Skrzyniarz expressed his appreciation to the City Council members for welcoming him to the Council. He stated he looks forward to working with them over the next two years. Councilman Skrzyniarz is aware that he would need three other votes from Council members in order to do any good and make an impact, so he is willing to work with his fellow Council members. He stated he looks forward to working on the issues that residents are concerned about. He knows the importance of thinking creatively about the problems the City is facing in the future. His goal is to attract new families to Sterling Heights and recreation is one of the things that young people look at. Councilman Skrzyniarz pointed out the Strategic Planning Session scheduled for January 28th at 7:30 pm. Councilwoman Ziarko announced the City Council would be celebrating with Mayor Notte on Friday when the Community Foundation honors him for his 20 years with the City. Councilwoman Ziarko announced Mayor Notte would be welcoming thousands of people at Lakeside Mall starting 7 am on Saturday for a 5K indoor walk for the St. Jude Give Thanks fundraiser. Councilman Romano expressed his appreciation to Mayor Notte as well and stated he gives a lot of his time and effort to the City. He is always available to the residents also. Councilman Romano pointed out to the residents that they could call City Hall to obtain contact information for Councilman Skrzyniarz, as he is sure that he would like to hear from the residents. Regular City Council Meeting Tuesday, November 19, 2013 Page 13 Councilman Romano asked Mr. Vanderpool to talk about the percentage of actual medical runs the Fire Department responds to. Mr. Vanderpool responded he doesn’t have the actual figure available right now, but it is in the 80-85% range and increasing every year. Councilman Romano questioned the Fire Department’s budget. Mr. Vanderpool responded $15 million, plus or minus 10%. Councilman Romano discussed the actual fire damages in excess of $10,000 that the Fire Department responds to. ADJOURN Moved by Ziarko, seconded by Taylor, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 8:35 p.m. MARK CARUFEL, City Clerk