City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, DECEMBER 3, 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 reported during the winter months, the City often has to declare Snow Emergencies in order to effectively remove snow from city streets and sidewalks. Emergency alerts are broadcast on Sterling Heights Television, Sterling Heights Radio, the City’s website, press release and list serve email notices. He explained the ordinance changes that enable improved enforcement and pointed out the Code Enforcement officers can also issue citations. Regular City Council Meeting Tuesday, December 3, 2013 Page 2 Mr. Vanderpool reminded vehicle owners they must remove vehicles from the street when a snow emergency is declared. He stated this is necessary to ensure safe vehicle travel and to allow access for emergency vehicles. Mr. Vanderpool advised residents the vehicles must be removed two hours after the emergency is declared and if the vehicles are not removed, a violation will be issued and there is a possibility the vehicle may be towed at an additional cost. Mr. Vanderpool reminded residents adjoining sidewalks of all residential, commercial and industrial properties must be cleared with 24 hours following a snow event. If not cleared, City inspectors will leave a door tag notice indicating the violation must be corrected within 24 hours of receipt of the notice. If the sidewalk is not cleared within the 24 hours after the notice has been issued, the City will remove the snow at the property owner’s expense. Mr. Vanderpool reported on special recreation Christmas activities, which include A Sterling Christmas to be held Saturday, December 7th from 5:45 to 8:30 pm. The official ceremony starts at 6:00 pm. Brunch with Santa on Sunday, December 8th at 10:00 am. The charge is $5.00 for residents, $8.00 for non-residents. Also there is a festive night celebration on Friday, December 13 at 7:00 pm. It is necessary to pre-register for this event. Residents are $7.00 pre-registered or $9.00 at the door. Non-residents are $10 pre-registered or $13.00 at the door. Mr. Vanderpool reported on behalf of the Library Director, there is a new program that is featured in the media this week, beginning on December 1. Sterling Heights cardholders will be able to read selected magazines on their electronic devices for free. He read a few Regular City Council Meeting Tuesday, December 3, 2013 Page 3 of the many publications available and encouraged residents to go to the City’s website for further information. Mr. Vanderpool reported the City’s SHINE program was recognized in a recent editorial this week. He stated SHINE is quickly being recognized as the best practice in the Metropolitan area. He commended Community Relations Director Steve Guitar and SHINE Coordinator Sue Giallombardo. Mr. Vanderpool reported at the conclusion of the business meeting, he and the City Attorney are requesting the City Council convene in closed session to discuss strategy in connection with the negotiation of a collective bargaining agreement, consider a privileged and confidential attorney-client communication from the City’s labor counsel and consider a periodic personnel evaluation of the City Manager. PRESENTATION Mr. Karl Oskoian, Community Foundation President, explained the Sterling Heights Community Foundation is celebrating its 22nd Anniversary in 2013. He explained the Foundation continues to enhance educational, cultural and recreational opportunities for Sterling Heights residents. The Foundation sponsors scholarships for high school and college students, funds programming for the public library and senior activity center and, recently, produced a very successful Puttin’ on the Ritz fundraiser that honored Mayor Notte for 20 years of public service as Mayor of Sterling Heights. He stated they are officially kicking off the 2013 Year-End Giving Campaign and invited residents to contribute to this campaign as a wise investment in their community. Mr. Oskoian Regular City Council Meeting Tuesday, December 3, 2013 Page 4 pointed out the multiple endowment funds, all of which are eligible to receive charitable donations. Ethnic Community Committee chairman Ike Cabase invited Mayor Notte and the City Council members to join him in recognizing and congratulating the 2013 Diversity Distinction award winners. Mr. Cabase explained the 2013 Diversity Distinction award winner UAW Community Angels is a diverse group of volunteers and employees from the Visteon Sterling Axle Plant. He stated they have participated in the City’s Pride and SHINE days and even adopted the Fort Street Presbyterian Church in Detroit, which includes a clothing closet and open kitchen. Mr. Cabase presented the award to the UAW Community Angels and Vice President Lorenzo Robinson. Ms. Susan Kattula explained 2013 Diversity Distinction award winner Mr. Dallo champions diversity by supporting many events held in Sterling Heights and employs a diverse group of workers that serve all types of food to attract a wide array of customers. Ms. Kattula presented the award to the 17th Street Bar & Grill, co-owned and managed by Tony Dallo. Dr. Steve Naumovski explained 2013 Diversity Distinction award winner Galleria Monique is a Metro-Detroit non-profit organization that focuses on art therapy through the moving museum of artwork. They are dedicated to promoting the Macedonian culture through various events and volunteerism. Dr. Naumovski presented the award to Macedonian artist Monica Spasovska Ilich. Regular City Council Meeting Tuesday, December 3, 2013 Page 5 Mr. Mohammed Alomari explained the 2013 Diversity Distinction award winner accounting firm of Kaszubski, Al-Hassan and Sadaps is comprised of a diverse group of accountants representing four different cultures. He pointed out Mr. Kaszubski never hesitates to assist low-income individuals on a pro-bono basis. Mr. Alomari presented the award to the accounting firm of Kaszubski, Al-Hassan and Sadaps, CPA & Associates. Mr. Doug Najor explained the 2013 Diversity Distinction award winner Michigan Wood Carvers Association promotes wood carving and shares knowledge in the artistic use of wood to interested persons and works to raise the stature of wood carving to others in the eyes of the public and art world. One of their projects is the Patriot Cane/Memorial Project, which provides veterans, regardless of their background, with unique walking canes, specially designed for each individual. Volunteers also work to carve hundreds of ornaments each year for the Festival of Trees. Mr. Najor presented the award to the Michigan Wood Carvers Association. Mr. Andrew Pulford explained 2013 Diversity Distinction award winner William Antoun is dedicated to promoting a message of tolerance, respect and understanding through his involvement in groups such as Welcoming Michigan and the Islamic Organization of North America. He has been a continuous participant in the City’s Pride & SHINE Days and assists with the organization of the World Refugee Day picnics. He has also participated in the City’s Cultural Exchange and the Getting to Know Your Neighbor symposium. Mr. Pulford presented the award to William Antoun. Regular City Council Meeting Tuesday, December 3, 2013 Page 6 Ms. Sharron Allen explained 2013 Diversity Distinction award winner Jeralda Hattar is the Director of Immigration and Refugee Services for Catholic Charities of Southeast Michigan. Jeralda came to the United States as an immigrant and now helps others learn about the challenges facing local refugees and the contributions they make to the Sterling Heights community. Jeralda played a key role as an organizer for the World Refugee Day picnic. Ms. Allen presented the award to Jeralda Hattar. Mr. Ike Cabase explained 2013 Diversity Distinction award winner Wayne Oehmke, President and CEO of the Sterling Heights Regional Chamber of Commerce, is forward thinking in recognizing the importance of welcoming and including immigrants and refugees in the economic activity of the City. Wayne contributed to the organization of the first “Breakfast of Nations” in Macomb County. He has displayed an outstanding commitment to helping individuals of all ethnicities feel welcome in their community. Mr. Cabase presented the award to Mr. Wayne Oehmke. Moved by Romano, seconded by Schmidt, RESOLVED, to individually and collectively recognize the 2013 Sterling Heights Diversity Distinction award winners and thank them for their personal dedication and efforts in championing diversity and creating a welcoming environment and inclusive community for all Sterling Heights residents. Yes: All. The motion carried. Mayor Notte called a five-minute recess at 7:59 p.m. Mayor Notte reconvened the meeting at 8:04 p.m. Mr. Brian Baker, Finance & Budget Director, presented the results of the financial audit for the prior fiscal year ended June 30th. He thanked the entire finance staff and in Regular City Council Meeting Tuesday, December 3, 2013 Page 7 particular Leslie Reinhart, the Controller. Mr. Baker reviewed the audit results with the City Council in the form of a power point presentation. Mr. Mark Hurst, Partner at Plante & Moran, explained the Financial Report and pointed out the City’s Comprehensive Annual Financial Report (CAFR) goes above and beyond the minimum state requirements. He discussed the transmittal letter at the front of the report and pointed out the City of Sterling Heights has been in the program for the past 25 years and has received the fewest number of comments. Mr. Hurst reported the City received an unmodified opinion, which is the highest level of assurance any CPA could give. (He pointed out this was previously called an unqualified opinion). He introduced Rumsey Adalla and Frank Schmidt in the audience from Plante & Moran. Councilman Skrzyniarz asked the number of years Mr. Hurst has been auditing the financial reports of the City of Sterling Heights. Mr. Hurst responded Plante & Moran has been auditing the City for 25 years; he has personally worked with the City for 15 years. Councilman Skrzyniarz questioned whether Mr. Hurst has noticed anything that stands out that’s better today than several years ago or whether there have been any improvements or declines in the terms of the quality of the audit results in the 15 years he has been auditing the City. Mr. Hurst responded by comparison the City is doing a lot more with less. He stated from their perspective, the City is at a level now where it has cut as deep as it can in the Finance Department. He pointed out despite all of these reductions, the quality has remained the same. Regular City Council Meeting Tuesday, December 3, 2013 Page 8 Councilman Romano expressed kudos and commended Mr. Baker and Leslie Reinhart for their hard work. Councilman Taylor questioned the number of communities Mr. Hurst provides services to. Mr. Hurst responded about 40 communities have applied for this certificate and he is in charge of six of them. In terms of government entities, he has 15-20 clients. Councilman Taylor questioned the General Employees Retirement System, Police & Fire Retirement System and the Retiree Health Care Trust Fund. He asked Mr. Hurst’s opinion on how the City of Sterling Heights is doing as compared to other communities. Mr. Hurst stated his personal opinion is the City is right in line with the best of them. He can’t think of any community that is even 80% funded for the Police & Fire or General Employees at this time. He stated this information is available on the state’s website. Councilman Taylor discussed the recent change in GASB and reporting requirements for retiree medical liabilities. Mr. Hurst responded when it comes to funding retirement health care, 20 years ago there was never any thought to funding what was really a defined benefit pension plan because the cost of providing medical benefits was so much lower at that time. GASB now requires municipalities to treat retiree medical like a defined benefit pension, and the City of Sterling Heights began to fund these future benefits. Councilwoman Koski questioned the number of years the City has received an “unqualified” or “unmodified” opinion. Mr. Hurst responded this would be the 26th year. Regular City Council Meeting Tuesday, December 3, 2013 Page 9 Councilwoman Koski questioned whether the auditors have made any recommendations or changes for the City to follow. Mr. Hurst responded there is a separate letter of comments and the one item he discussed with Mr. Vanderpool is the fact that the financial staff is as thin as it can get without starting to cause some internal control problems. There are no other major changes in the process. Moved by Schmidt, seconded by Ziarko, RESOLVED, to receive and accept the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2013. Yes: All. The motion carried. Ms. Leslie Reinhart, the City’s Controller, presented the CAFR and Distinguished Budget awards from the Government Finance Officers Association (GFOA) to Mayor Notte. ORDINANCE INTRODUCTION 1. Mr. Brian Baker, Finance & Budget Director, made a presentation explaining the first amendment to the Appropriations Ordinance for the 2013/14 fiscal year. He stated this amendment includes items the City Council has authorized a budget amendment for throughout the year and items approved in the last year’s budget that need to be carried forward into the current year’s budget. He pointed out this amendment includes General Fund encumbrances from last year, the majority of which are in the Police and Fire departments. It also includes carryover funding for capital items that were not completed and expensed at the end of last fiscal year and for grant items approved by the City Council since the budget was adopted back in May. He pointed out this is only the first reading of the ordinance. Regular City Council Meeting Tuesday, December 3, 2013 Page 10 Moved by Ziarko, seconded by Schmidt, RESOLVED, to introduce the first amendment to the Appropriations Ordinance for the 2013/14 fiscal year. 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 Special Meeting of November 12, 2013, as presented. B. To approve the minutes of the Regular Meeting of November 19, 2013, as presented. C. To approve payment of the bills as presented: General Fund - $750,008.26, Water & Sewer Fund - $58,057.48, Other Funds - $333,669.91, Total Checks - $1,141,735.65. D. RESOLVED, to schedule a special meeting of the City Council for a strategic planning session on Tuesday, January 28, 2014 at 7:00 p.m. and direct the City Clerk to post the appropriate notices in accordance with Michigan’s Open Meetings Act. E. RESOLVED, to comply with Public Act 152 of 2011 by implementing the hard cap for the City’s contribution to the cost of employee health insurance effective January 1, 2014 and allocate the maximum City payment as follows: $5,857.58 for employees with single person coverage; $11,715.17 for employees with individual and spouse coverage; and $15,975.23 for employees with family coverage. F. RESOLVED, to approve the Footing Drain Disconnection Grant Program to assist in the disconnection of footing drains from the publicly-owned storm sewer system and installation of a sump pump system and authorize a budget amendment in the amount of $40,000.00 from the Capital Project Fund. G. RESOLVED, to: Regular City Council Meeting Tuesday, December 3, 2013 Page 11 (A) Award the bid for snow removal services to Landscape Services, Inc., 22932 Rasch Drive, Clinton Twp., MI 48035, for a one-year period based on unit prices bid, with an option for the City Manager to extend the term of the bid an additional one-year period on the same terms and conditions; and, (B) Authorize an amendment to the budget from reserves to increase funding $31,360 in 23700700 (Local Road Fund) 826000 (Other Contracted Services), and $28,420 in 11744770 (Parks & Grounds Maintenance) 826000 (Other Contracted Services). H. RESOLVED, to approve the Fixed Price Program Agreement between the City of Sterling Heights and Constellation NewEnergy – Gas Division, LLC, 3060 Commerce Drive, Suite 4, Fort Gratiot, MI 48059 for the purchase of natural gas for the period January 1, 2014 through March 31, 2015 at a unit price of $4.25 per MCF. I. RESOLVED, to extend the bid award to: (1) Petroleum Traders Corporation, 7120 Pointe Inverness Way, Fort Wayne, IN 46804 and RKA Petroleum Companies, Inc., 28340 Wick Road, Romulus, MI 48174 for truck transport deliveries; and, (2) Atlas Oil Companies, 24501 Ecorse Road, Taylor, MI 48180 for tank wagon deliveries, for the purchase of gasoline and diesel fuel at the respective unit prices bid through January 31, 2016. Regular City Council Meeting Tuesday, December 3, 2013 Page 12 J. RESOLVED, to award the bid for asphalt materials to the Barrett Paving Materials, Inc., 5800 Cherry Hill Road, Ypsilanti, MI 48198, at the unit prices specified below for six months from date of bid award: Section A1 – Cold Patch (CP-6) $ 90.00 per ton Section A1 – Cold Patch (CP-6), delivered $ 94.00 per ton Section A2 – Cold Patch (UPM) $108.00 per ton Section A2 – Cold Patch (UPM), delivered $112.00 per ton Section B1 – 1100 Leveling (20AA) $ 47.50 per ton Section B2 – 1100 Topping/Wearing (20AA) $ 47.50 per ton Section B3 – Wearing 36A $ 53.00 per ton with an option for the City Manager to extend the term of the bid three additional six-month periods on the same terms and conditions, upon mutual consent of the City and Barrett Paving Materials, Inc. K. RESOLVED, to approve the Consent Special Assessment Agreements for the 2012 Sidewalk Replacement Program, City Project #12-230, Special Assessment District SW-13-02 and authorize the Mayor and City Clerk to sign the Agreements on behalf of the City. L. RESOLVED, to approve final payment to Galui Construction Co., Inc., 33805 Harper Avenue, Clinton Township, MI 48035 in the amount of $35,751.95 plus interest on retainage for the 2013 Concrete Pavement Replacement Program, City Project #13-238 and Tyler Drive Concrete Pavement Repairs, City Project #11-224. Yes: All. The motion carried. Regular City Council Meeting Tuesday, December 3, 2013 Page 13 COMMUNICATIONS FROM CITIZENS Mr. Jeffrey Norgrove – Congratulations to Mr. Baker and the Financial team; Invitation to attend “A Sterling Christmas” this Saturday; Visit to Upton House; Spoke in support of Mr. Vanderpool. Mr. Charles Jefferson – Supports Mr. Vanderpool; Definition of “Commercial Vehicle”; Meet the Candidates statement made by Councilman Skrzyniarz in regard to his salary as Councilman; Warming Center announcements. Mr. Mike Lombardini – Questions on Financial Audit (security of state and federal revenue sources of income, fiscal deficit, medical emergencies); if City of Detroit bankruptcy affects Sterling Heights. Mr. George O’Brien – Need for all private ambulance service for medical runs; Salary and benefits for Police & Fire; Need for 24 Sergeants in the Police Department; Police & Fire Residency. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL There was no report from Mr. Bahorski at this time, other than the mention of closed session items. Mr. Vanderpool responded to Mr. Jefferson as it relates to commercial vehicles. Mr. Baker pointed out state and federal sources account for 90% of the revenue sharing cuts and both have been going down and he doesn’t anticipate them going down much further. The City of Sterling Heights has no funds in the City of Detroit. Mr. Baker pointed out a lot has been done in the way of wages and benefits. In regard to the suggestion for three shifts in the Fire Department, Mr. Baker stated that would cost a Regular City Council Meeting Tuesday, December 3, 2013 Page 14 lot more because we would have to hire a lot more people and that would cost more in salary and wages. Councilman Skrzyniarz responded to Mr. Jefferson that he said if he were on the Council at the time of the budget cuts, as a leader he would give back a portion of his salary. He stated he would be giving back a portion of his salary to the Sterling Heights Community Foundation. Councilwoman Ziarko stated to Mr. Jefferson that St. Blasé has a chart on the outside of their doors with the dates and locations of all the warming centers. She stated she would contact Mr. Guitar about placing information on the City website. Councilman Romano discussed residency and stated the law allows the employees to live outside the City. He stated there is a strategic planning session in January and at that time the City Council could discuss some of the fire department costs. CLOSED SESSION PERMITTED UNDER ACT 267 OF 1976 Moved by Ziarko, seconded by Romano, RESOLVED, to recess to closed session to discuss strategy in connection with the negotiation of a collective bargaining agreement, consider a privileged and confidential attorney-client communication from the City’s labor counsel and consider a periodic personnel evaluation of the City Manager. An open discussion could have a detrimental financial effect on the City. Roll call vote: Yes: Ziarko, Romano, Schmidt, Skrzyniarz, Taylor, Notte, Koski. The motion carried. The meeting was recessed at 9:00 p.m. Regular City Council Meeting Tuesday, December 3, 2013 Page 15 ADJOURN Moved by Schmidt, seconded by Ziarko, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 10:11 p.m. MARK CARUFEL, City Clerk