City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, MARCH 4, 2014 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 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 as presented. Yes: All. The motion carried. REPORT FROM CITY MANAGER Mr. Vanderpool reported on our community visioning process. He stated the City of Sterling Heights is focusing on a clear vision for the next twenty years which includes updating a number of formal plans including the Parks and Recreation plan, the Master Land Use plan, Technology plan, and the succession plan for employees. He explained that in addition to plans, we have to decide how to provide core services with a downsized organization and determine how best to invest in quality of life services. He stated that one of the first steps in determining these factors is getting feedback from the community. He explained that in Regular City Council Meeting Tuesday, March 4, 2014 Page 2 addition to the focus groups, the City will have a community survey available on the City website for anyone to participate. Mr. Vanderpool reported an update regarding personal property tax legislation. He stated the State has been trying to eliminate personal property tax which is a special tax on businesses only and generates millions of dollars annually for the City of Sterling Heights. He explained that the concern for the City is how will funding be replaced with the elimination of this tax. He explained that there is new legislation going through the legislature that will provide a 100% replacement of the personal property tax loss. He stated that it will take a few years for the new legislation to play out so revenue replacement starts to take effect, however, the City is in a much better position than we were a year ago. PRESENTATION Councilwoman Koski presented the Nice Neighbor Award to Chuck and Donna Scovoronski, nominated by Derek D’Angelo. PUBLIC HEARING 1. Economic Development Manager Barry Hicks made a presentation as it relates to the application by Serapid, Inc. for an Industrial Facilities Tax Exemption Certificate at 34100 Mound Road. The petitioners were present, along with Dwayne McLachlan, City Assessor. Mr. Hicks explained that Serapid opened its first facility in the United States in 1991. He stated that Serapid has roots in the automotive industry, but has branched out to other diverse industries including metrology, aerospace, medical equipment, defense, and stage technology. He explained that Serapid is dedicated to expanding in Sterling Heights. He stated that Serapid sought out an existing manufacturing facility located at 34100 Mound Road. He explained that Regular City Council Meeting Tuesday, March 4, 2014 Page 3 the facility is now undergoing renovations both inside and out including constructing a new showroom, a research and development lab, and pristine manufacturing areas. Mayor Notte opened the public hearing. Mr. VanNatter thanked the Mayor and City Council for consideration. Mayor Notte closed the public hearing. Moved by Schmidt, seconded by Romano, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by Serapid, Inc. at 34100 Mound Road is hereby approved for a period of seven (7) 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 inquired if Serapid will still pay 100% of taxes of the existing property. Mr. McLachlan reported that Serapid would still be responsible for 100% of taxes on the existing property not related to the renovations. Councilwoman Schmidt stated that she is thrilled with the investment in the community and wishes the petitioner well. Yes: All. The motion carried. 2. Economic Development Manager Barry Hicks made a presentation as it relates to the application by Miba HydraMechanica Corp. for an Industrial Facilities Tax Exemption Certificate at 6515 Cobb Drive. The petitioners were present, along with Dwayne McLachlan, City Assessor. He explained that Miba is an international corporation that provides a variety of products. He stated that the groups are located all over the world including Austria, China, Brazil, India, Germany, France, and Italy. He stated that the Sterling Heights location specializes in friction products. He explained that Miba has been operating one of its five Regular City Council Meeting Tuesday, March 4, 2014 Page 4 friction groups in Sterling Heights since 1989. He stated that Miba owns property at 6515 Cobb Drive and 6625 Cobb Drive in Sterling Heights. He stated that Miba recently acquired a new friction disc project that necessitates a new investment in real and personal property. Mayor Notte opened the public hearing. Mr. John Horn, petitioner, thanked the Mayor and City Council for consideration. Mayor Notte closed the public hearing. Moved by Romano, seconded by Schmidt, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by Miba Hydramechanica Corp. at 6515 Cobb Drive is hereby approved for a period of nine (9) 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 Romano wished the petitioners success in their endeavors. Yes: All. The motion carried. ORDINANCE ADOPTION 3. Mr. Anthony Rubino, owner of Pilot Property Group, explained that his business is a commercial real estate brokerage firm that specializes in industrial, retail, and vacant land properties. He explained that around 80% of the commercial real estate signs in the City are professionally installed by companies such as his and that 20% are done by an owner which is causing the ordinance to be proposed. He explained that signs are ordered bulk as 6 ft. by 4 ft. panels, installed on the properties until the properties are sold, and then reused for the next properties. He stated that his two main concerns with the ordinance are the monument sign requirement and the maximum sign size of 16 square feet. Regular City Council Meeting Tuesday, March 4, 2014 Page 5 Moved by Ziarko, seconded by Schmidt, BE IT ORDAINED, to adopt the ordinance amending Article 28 of Zoning Ordinance No. 278 to revise the regulations governing standards, location, permitting, construction type, duration and implementation for placement of temporary real estate signs, Case No. PZ13-1126. Councilwoman Ziarko requested Mr. Mende address the concerns of Mr. Rubino. Mr. Mende explained that the current ordinance gives a maximum of 16 square feet for signs so there is no change in how the ordinance is currently written. He also stated that the City is looking for a long-term solution with the monument signs, so the proposed amendment would allow for a larger monument sign with more square footage to allow for a permanent place for real estate advertising. Councilman Skrzyniarz asked Mr. Mende what the grace period is before the ordinance would be regulated. Mr. Mende explained that the ordinance would be in effect as of next week and there would be a 6-month phase in. Councilman Taylor inquired where in the ordinance amendment it mentions that v-shaped signs were allowed. Mr. Mende stated that the current ordinance lists that v-shaped signs with a total of 16 sq. ft. is allowed. Councilman Taylor stated that he doesn’t have as much of a problem with a 16 square feet requirement; however, he finds the requirement of the monument sign to be problematic as all monument signs are different. Councilwoman Koski stated that she agreed with everything Councilman Taylor said and also inquired what the current cost is for signs and how the ordinance would affect sign costs. Mr. Rubino stated that the cost of a v-shaped real estate sign costs around $450 and the cost of creating a monument sign ranges, but the minimum is around $800. Councilwoman Koski Regular City Council Meeting Tuesday, March 4, 2014 Page 6 asked Mr. Rubino what he would change about the ordinance if he could. Mr. Rubino stated that he would eliminate the monument proposal and that he would change the minimum sign size from 16 square feet to 24 square feet and that all signs are installed professionally. Councilwoman Koski asked what Mr. Rubino thought about a permit fee for signs. Mr. Rubino stated that a permit fee would just add to their costs. Mayor Notte asked Mr. Mende if there was time to make changes to the ordinance. Mr. Mende stated that there is still time to make changes. Councilman Romano stated that the last thing the City Council wants to do is prohibit brokers from installing signs so properties can be leased. He stated that the City has a Board of Ordinances that manages any complaints regarding signs. He explained that he hasn’t heard of any brokerage companies having problems, so they are marshalling themselves. He stated that when the ordinance was originally introduced, he asked for feedback from the brokerage community and Mr. Rubino was the only one to show up. He explained that since the last meeting he has received many phone calls from companies who were upset with the ordinance amendment. He recommended that the brokerage companies begin discussions about their properties with the Economic Development Manager who is always looking for unoccupied buildings. He stated that he is in agreement to postpone the ordinance adoption until changes can be made to the proposal. Councilwoman Schmidt stated that she is comfortable with 16 square feet minimum. She stated that if that is what the ordinance is, we should start enforcing it. She explained that she has no problem with a postponement. Regular City Council Meeting Tuesday, March 4, 2014 Page 7 Moved by Romano, seconded by Notte, RESOLVED, to postpone to the April 1, 2014 regular City Council meeting the consideration for an ordinance amending Article 28, Section 28.13 of Zoning Ordinance No. 278 regulating signs, Case No. PZ13-1126. Yes: Romano, Notte, Koski, Schmidt, Skrzyniarz, Taylor. No: Ziarko. The motion carried. CONSENT AGENDA 4. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda: A. To approve the minutes of the Regular Meeting of February 18, 2014, as presented. B. To approve payment of the bills as presented: General Fund - $460,9185.44, Water & Sewer Fund - $2,491,105.95, Other Funds - $492,192.08, Total Checks - $3,444,216.47. C. RESOLVED, to receive the report of the Purchasing Manager pursuant to City Code §2- 221(B) regarding emergency repairs to the 2007 JCB 3CX backhoe by AIS Construction Equipment Corporation, Inc., 65809 Gratiot Avenue, Lenox, MI 48050, in the amount of $17,321.48. D. RESOLVED, to approve the Interlocal Services Agreement between the City of Sterling Heights and the Charter Township of Shelby for building inspection and plan review services and authorize the City Manager to sign the Agreement on behalf of the City. Councilwoman Ziarko requested that Mr. Vanderpool explain Item D further. Mr. Vanderpool stated that the City has been service sharing for many years. He stated that examples of service sharing that has saved approximately $21 million dollars are provided in the backup. He stated that the City of Sterling Heights used to receive around $5 million in statutory State-shared revenue, however, now the City receives less than $1 million. He explained that cumulatively over the last 10 years we have lost over $40 million in State-shared revenue. He stated that the Regular City Council Meeting Tuesday, March 4, 2014 Page 8 State has cut the budget and has forced Sterling Heights to compete for the $800,000 of State shared revenue. He explained that the City competes by participating in service-sharing opportunities. Yes: All. The motion carried. CONSIDERATION 5. Mayor Notte asked if anyone in the audience would like to speak on this issue. Mr. Phil Ruggeri explained that All World Sports Café was granted a Tavern license five years ago by the City Council. He explained that Mr. Kalaj, the petitioner, has maintained the establishment and that there have been no incidents reported there. He stated that Mr. Kalaj has been generating charity poker at his site that has been servicing many charities in the local area. He stated that Mr. Kalaj invested over $100,000 in the initial Bistro, and has now invested around $30,000 to expand his business. He explained that he is generating around $1,000 per session and that the participants are now asking for mixed drinks. He stated that they are missing out on an opportunity to expand the business even more by not being licensed for liquor. He explained that the escrowed license will not count against the City’s quota and that Mr. Kalaj is willing to invest the money in the City. He read a letter from the American Legion in support of the liquor license. Mr. Charles Jefferson expressed concerns about gambling establishments being so close together. He also inquired about the ordinance about how far apart liquor licensed businesses must be. Regular City Council Meeting Tuesday, March 4, 2014 Page 9 Ms. Maureen Jackson, representing AMVETS Auxiliary 57, spoke in favor of the liquor license. Mr. Eric Lovachs, representing American Gymnastics Institute Booster Club, spoke in favor of the liquor license. Mr. Tom Reichenbach, representing Bishop Foley Catholic High School, spoke in favor of the liquor license. Mr. Jason Walker, representing New Haven Little League, spoke in favor of the liquor license. Moved by Taylor, seconded by Notte, RESOLVED, that the request to transfer ownership of an escrowed Class C liquor licensed business located at 44935 Hayes, Sterling Heights, MI 48313 from Fifth Third Bank to All World Sports Café, Inc. and transfer location to 42092 Van Dyke, Sterling Heights, MI 48314 with new entertainment permit be considered for approval. Councilman Taylor stated that it is difficult to get donations for worthy causes alone, however, people like to play poker and like to drink liquor while playing poker. He stated that this establishment is professionally run and that it speaks volumes that there are so many people speaking in support of the license. He stated that he wishes the applicant success. Mayor Notte stated that Mr. Kalaj is investing a lot of money in his business and that the liquor license is just an upgrade. He stated that there are a lot of customers that want to do business with him and he is running a well-organized establishment. Councilman Romano inquired if Mr. Kalaj or any of his staff has ever had TIPS training. Mr. Ruggeri stated that both Mr. Kalaj and some of his staff have had TIPS training. Councilman Romano asked who would be serving alcohol at the establishment. Mr. Ruggeri stated that Regular City Council Meeting Tuesday, March 4, 2014 Page 10 there will be trained, 18 year and older wait staff serving alcohol. Councilman Romano stated that he has had a positive experience visiting Sterling Bistro and that it is a professionally run organization. He inquired if there have been any violations at Sterling Bistro. Sgt. Belmonte stated that there have been no violations. He also stated that the liquor license and charitable gaming license are run separately. He explained that the City has no say over the gaming portion and that it is up to the Michigan Gaming Commission. He stated that Mr. Kalaj has been very diligent in answering any of his questions and has turned out to be a very positive test project and there are no concerns at this time. Councilwoman Koski inquired if the main portion of the business would be gambling and that food would be secondary. Mr. Ruggeri stated that a big part of the business is gaming and that Mr. Kalaj has expanded to twice the square footage to accommodate that. He explained that with the addition of the liquor license, the intention would be to expand the menu, as well. Councilwoman Koski inquired if there is separate staff for serving food and beverages and for the gaming portion. Mr. Ruggeri explained that the business has a set of staff for serving and another set of staff for gaming. Councilwoman Koski asked if the lease expires in 2015. Mr. Ruggeri stated that the lease expires in 2016, however, there are options for additional years that Mr. Kalaj will be exercising. Councilwoman Schmidt inquired about the seating capacity in the establishment. Mr. Ruggeri stated that the seating capacity is at 120. Councilwoman Schmidt stated that the focus seems to be away from being a coffee shop into the gambling situation. Mr. Ruggeri explained that there are two distinctly separate rooms, one being the coffee shop and the other being the gaming room. Councilwoman Schmidt asked if there was a full kitchen. Mr. Ruggeri stated Regular City Council Meeting Tuesday, March 4, 2014 Page 11 that there is a full kitchen. Councilwoman Schmidt asked if there are multiple events on the same day. Mr. Ruggeri stated that they do have multiple events on the same day sometimes. Councilman Skrzyniarz explained that when casinos were brought into the state the proceeds were supposed to go back into the communities. He stated that since that time the casinos have been purchased by national entities and he doesn’t see as much of the money going back to the communities. He stated that people who like to gamble are going to find a place to gamble no matter what, however, Sterling Bistro provides an opportunity to generate money in the City and that charities get to benefit. Councilwoman Ziarko stated that she prefers charities to be creative when looking for a means to raise money. She explained that through her work with many charities, they discourage raising money through gambling. She stated that she hopes the money generated by the liquor license will go back into the bistro portion of the restaurant and not into the gambling aspect. Yes: All. The motion carried. COMMUNICATIONS FROM CITIZENS There was no public participation. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL There was no report from Mr. Bahorski or Mr. Vanderpool at this time. Councilman Romano thanked Mr. George Hamzik for his work in picking up illegal signs. ADJOURN Moved by Ziarko, seconded by Romano, to adjourn the meeting. Regular City Council Meeting Tuesday, March 4, 2014 Page 12 Yes: All. The motion carried. The meeting was adjourned at 9:00 p.m. MARK CARUFEL, City Clerk