City Council

CITY OF STERLING HEIGHTS MINUTES OF SPECIAL MEETING OF CITY COUNCIL MONDAY, APRIL 14, 2014 IN CITY HALL Mayor Richard J. Notte called the meeting to order at 6:30 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; 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. BUDGET WORKSHOP DISCUSSION 1. Presentation of Budget Capital Project & Other City Funds City Administration Department Administrative Services Division Finance and Budget Division Police Department Mr. Vanderpool presented the 2014/15 proposed City Budget and stated this evening would be an overview of the budget, covering capital projects and other funds, City Administration Department and the Police Department. He explained the budget workshop discussion would begin with a number of presentations and asked that questions be held until the presentations are completed. Mr. Vanderpool indicated the Special City Council Meeting Monday, April 14, 2014 Page 2 Appropriations Ordinance would need to be introduced this evening. He informed the public that the City's proposed budget is available online. A video summary of the proposed budget was shown at this time. Mr. Brian Baker, Finance & Budget Director, provided an overview of the proposed budget with the use of a power point presentation. He explained the total City budget is $155.6 million and is broken down into 5 major fund types: The largest is the General Fund, which is 60% of the total to fund 6 operating departments in the City; the second largest is the Water & Sewer Fund, with 3 divisions; next is the Capital Projects Fund at $4.1 million for the repair of City facilities, including storm drains, sidewalks and replacement of vehicles and equipment for the operating departments; the Debt Service Fund, consisting of 4 funds, totals $3.2 million and the Special Revenue Fund, which consists of 7 funds, at a total of $18.8 million, is for maintenance and repair of City major roads and local neighborhood streets. Mr. Baker pointed out the total expeditures per resident last year was the lowest of comparable cities. The largest revenue source under the General Fund is from property taxes, followed by state and local returns, charges for services, cable TV and other financing sources. The majority of the money the City allocates goes to the police and fire departments and the DPW. Mr. Baker showed graphs highlighting the City's taxable values over the last 7 years, the tax revenue per resident, government debt per capita, the investment in major road repairs, neighborhood road repairs and capital facilities, vehicles and equipment. Mr. Baker provided an overview of the proposed budget for the City Administration Department and pointed out there are 3 divisions with 39 full-time employees and 10 part-time employees, for a total of 49 employees. The City administration expenditures have dropped every year since 2009 and a slight increase is anticipated for 2015. Mr. Baker reviewed the funding level summary in detail. Special City Council Meeting Monday, April 14, 2014 Page 3 Mr. Baker provided an overview of the proposed budget for the Police Department, which consists of the Office of the Police Chief and 4 divisions. There are 189 full-time employees and 33 part-time employees, for a total of 222. He reviewed the funding level summary in detail. Mr. Sal Conigliaro, Public Works Director, reviewed the proposed budget for the Public Works Department. With the use of a power point presentation, he provided a summary of the major road projects totaling $5.9 million and the local road projects totaling $4 million. The proposed schedule for the 2014 local road concrete reconstruction program is as follows: Bids to be received May 13, 2014, forwarded to City Council for award on June 3, construction to begin June 23 and completion by October 15, 2014. The proposed schedule for the Neighborhood Asphalt Resurfacing Program is similar to the local road concrete reconstruction program, except for the completion date of November 1, 2014. Mr. Conigliaro pointed out the county and city road projects in the design phase include: 2014 - Mound Road, 18 Mile to M-59; 2015 - Van Dyke Avenue, 14 Mile to 18 Mile; 2016 - Dodge Park Road reconstruction and 2017 - Dequindre Road widening, 18 Mile to the City limits. The total estimated cost is $62 million. He also presented a chart of the 10-year City major road maintenance needs showing a City cost of $26 million and pointed out state grant funding may reduce the City's share. Mr. Vanderpool noted the City Council approved money for road maintenance equipment at the last City Council meeting. He stated to the residents the City would be attacking the pot holes in great force in the coming weeks and year round. Economic Development Manager Barry Hicks gave an overview of the proposed budget for his department. He reviewed the key performance indicators, the investment & jobs retained and created. Mr. Hicks pointed out the Economic Strategic Planning under the Special City Council Meeting Monday, April 14, 2014 Page 4 Sterling Heights Economic Development (SHED) Team, Velocity, the Corridor Improvement Authority and the Economic Development Revolving Fund. Mr. Vanderpool discussed the improvement to the North Van Dyke Corridor. Police Chief Michael Reese discussed the proposed budget for his department. He pointed out within the next 24-36 months, the Police Department will undergo a tremendous change in the top management positions down to the clerical staff and many positions will be in a period of transition because of retirements. The City is proposing to add $450,000 to the budget to allow for the hiring of 12 additional officers. Eligibility lists will be established for the management positions. Chief Reese discussed crime statistics, safety initiatives (new Community Response Unit, Crime Analysis Officer Position and the Commercial Motor Vehicle Enforcement Program). He stated the volunteer corps (Community Emergency Response Team and Citizens on Patrol/Neighborhood Watch) help the City to maintain the safe city status. Chief Reese pointed out the School Safety Initiatives in place. He pointed out the consolidated dispatch project continues to move forward. Chief Reese discussed capital improvements and purchases for the Police Department. Mayor Notte opened the discussion to the audience. Mr. Jeffrey Norgrove questioned the effect of the phasing out of Microsoft Windows XP and whether new operating systems will be required for the City. Mr. Norgrove inquired whether there is a backup plan in place if another dip in housing or tax catastrophe occurs. Mayor Notte opened the discussion to the City Council. Councilman Skrzyniarz inquired how the City would make sure that designs and reconstructions will include elements of the future planning and visioning process, specifically for pedestrian and bike traffic. Special City Council Meeting Monday, April 14, 2014 Page 5 Councilman Skrzyniarz discussed drains in the local waterways and how that affects roads degrading at a quicker rate. He also wanted an assurance on the quality of the road repairs. Mr. Conigliaro responded they are including funding for a trail master plan. In regard to Dodge Park, they have advised their consultants they want to see some trails through Dodge Park. Every project that is a reconstruction type of project will be looked at very closely to determine the opportunities available. Mr. Conigliaro responded in regard to the water drains, when the roads are brought back to their original design, it will reestablish those high to low points and the crown will be properly set. He believes that will address most of the problems. He stated they are addressing the quality of the materials used and making sure that the workmanship would be high quality. Councilman Skrzyniarz discussed the amount of funding for the Economic Development Revolving Fund in this year. Mr. Hicks responded $300,000. Councilman Skrzyniarz questioned how other cities handle that type of funding. Mr. Hicks responded it is not something that you see all cities doing. They are trying to provide some seed funding for the developers through tax increment financing. Councilman Skrzyniarz discussed patrol of the parks. Chief Reese responded the parks are still patrolled and the officers get in to the parks as much as possible. Councilman Skrzyniarz discussed the increased lighting in the parks. Chief Reese responded the more lighting the safer the parks will be. Councilman Skrzyniarz asked Chief Reese to keep the City Council informed if there is anything they need from the Council to support their efforts in keeping the parks safe. Special City Council Meeting Monday, April 14, 2014 Page 6 Councilman Skrzyniarz discussed the increased heroin problems and asked Chief Reese to address this issue. Chief Reese responded Sterling Heights has no more problem with heroin than any other community surrounding us. He stated it is a problem they are addressing with the schools. Councilman Skrzyniarz offered to assist the Chief in the support of his efforts to reduce heroin use in the City. Councilman Skrzyniarz questioned the possibility of using returning soldiers in the recruitment process for the police department. Chief Reese responded we need to step up our recruitment and that is an option they expect to explore. Councilman Romano questioned the amount of money left in the Drug Forfeiture Fund. Mr. Baker responded a couple thousand dollars. Councilman Romano discussed the use of the funds and inquired whether they could be used for replacement or repairs to the police department. Mr. Baker responded there are certain guidelines for use of the funds. Councilman Romano questioned the Community Response Team and stated he believes we have that working now. He inquired how this team would be more responsive than the existing one. Chief Reese responded this unit would remain in the City and focus on issues occurring in the City, regardless of day or night. Councilman Romano questioned the qualifications for this unit and how they are selected. Chief Reese responded the 4 would be officers out of the patrol operations division, including traffic bureau and patrol unit. Special City Council Meeting Monday, April 14, 2014 Page 7 Councilman Romano questioned promotions in the next 12 months. Chief Reese responded they just had a Sergeant retire a couple weeks ago and a Lieutenant will be retiring at the end of May or second week in June. There is some speculation that other Sergeants will retire prior to their drop date, but he is not sure about that. Councilman Romano questioned whether the positions could remain dormant. Chief Reese responded they could because they would not be able to hire anyone in the near future unless something changes negotiation-wise. Councilman Romano discussed 5-year guarantees on the road repairs and bonding. Mr. Conigliaro responded the Michigan Department of Transportation believes on major projects, they will try to get those additional guarantees, but they don't believe it is cost effective for smaller jobs. The industry standard is 2 years, but if you are willing to spend enough money for a bond they will sell you a bond. Councilman Romano clarified that he is asking for the Contractors to put up the bond and the City could pay them for the interest. He stated this is his suggestion and he will continue to pursue it. Councilman Romano discussed the construction on 16 Mile Road from Dodge Park to Utica Road and wanted to see a cost factor for the construction to start on 15 Mile Road. Councilwoman Koski questioned the enforcement of weight limits, how the trucks would be identified and stopped. Chief Reese responded the officers would be able to tell by the way the truck is traveling on the road and the equipment on the trucks. Councilwoman Koski questioned the resource officers and whether they are in all the schools. Special City Council Meeting Monday, April 14, 2014 Page 8 Chief Reese responded we have only one resource officer in Sterling Heights High School. Utica Community Schools has their own security. Councilwoman Koski questioned the use of the COPS program in the neighborhood parks. Chief Reese stated the COPS program is an option they have, but they are not sure they want to come in on the weekends. Councilwoman Koski discussed the Clinton River initiative and inquired whether Mr. Hicks would have any input on that. Mr. Hicks responded so far it has been a collaboration between the County and the cities and townships that the river runs through and through the Clinton River Watershed. Funds and volunteer's primary function has been clearing debris from the river. Councilwoman Koski discussed dog licenses and inquired whether there was a way to work with residents that wanted to come into the City Clerk's Office to obtain their dog license rather than go through Pet Data. Mr. Carufel responded the City Clerk's Office would be willing to assist those resident on a non-routine basis, although they prefer Pet Data handling the licensing. Councilwoman Schmidt inquired when Proposal F debt would be paid. Mr. Baker responded 2023. Councilwoman Schmidt requested consideration be given to a permanent election assistant, either part-time or full-time, although she would prefer the position be full- time. Councilwoman Schmidt stated to Mr. Conigliaro she hopes the bids will come in lower than anticipated so more roads could be repaired. Councilwoman Schmidt discussed the Public Safety Forfeiture Fund and inquired whether that referred to the Drug Forfeiture Fund. Special City Council Meeting Monday, April 14, 2014 Page 9 Chief Reese responded yes, it does and they would be spending some of that in this budget. Councilwoman Schmidt discussed the purchase of 9 Caprice squad cars. Chief Reese responded everyone involved in the evaluation process was in favor of the Caprice. Councilwoman Schmidt spoke in support of the School Resource Officers and stated that is a very good presence to have. Councilwoman Schmidt questioned the possibility of a grant to assist the City in the purchase of equipment to be used in the enforcement of weight limits. Councilwoman Ziarko stated the City Council is grateful to the residents for approving a millage that allows the City to spend this money. Councilwoman Ziarko discussed road reconstruction and asked Mr. Conigliaro to discuss the collapse of sewers and whether there is an inspection rotation for those sewers. Mr. Conigliaro responded as far as inspections, the DPW has a program where they inspect and clean out all the sewers. Councilwoman Ziarko expressed her appreciation to Mr. Conigliaro for choosing the roads they selected and stated this is a start and we should move forward from there. Councilwoman Ziarko discussed the succession plan and commended Mr. Vanderpool for his proactive efforts in this area. Councilwoman Ziarko questioned the possibility of job sharing, whereby 2 people could be hired in a part-time capacity, without benefits, and the two people would share one job and be able to take over for each other. Councilwoman Ziarko questioned the timing of promotional testing for the Police Department and how a person is eligible for those positions. Special City Council Meeting Monday, April 14, 2014 Page 10 Chief Reese responded there is already a promotional list in place for the Sergeants and the Captain promotional test will be given the first week in May and the second week in May will be for the rank of Lieutenant. He indicated the rank of Sergeant needs 5 years experience, 2 years from Sergeant to Lieutenant and 2 years from Lieutenant to Captain. Councilwoman Ziarko pointed out it doesn't matter how safe a City is, a national disaster could happen at any time. She is grateful the City has put all this effort into public safety and new security improvements. Councilwoman Ziarko discussed the City Hall parking lot and inquired whether there is a way to configure the parking lots so they are not used for cut through traffic, taking into consideration the safety of the employees and City property. Mr. Conigliaro responded they would have to sit down with all the department heads and discuss a reconfiguration of the parking lots. The focus this year is the area in front of the Library, in front of the police station and the boulevard area. Councilwoman Ziarko discussed the message sign repair. She inquired the age of the sign and how much it could cost to repair it, compared to the cost of a new sign. Mr. Baker responded they did an analysis and it was $25,000 just to put in new LED inserts. The sign is probably about 14-15 years old. Councilwoman Ziarko stated she is looking forward to the Master Plan updates. ORDINANCE INTRODUCTION 2. Moved by Romano, seconded by Ziarko, RESOLVED, to introduce the Appropriations Ordinance for the 2014/15 fiscal year. Yes: All. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Jeffrey Norgrove - In favor of the proposed budget. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Special City Council Meeting Monday, April 14, 2014 Page 11 Mr. Vanderpool responded to questions from Mr. Norgrove as it relates to the City's plan in the event of another disaster. He pointed out the City has fund balance reserves and part of the financial plan brings that back to about 15%. He feels very confident that the City is well positioned for the future and would be able to absorb various downturns in the economy. Mr. Vanderpool referred Mr. Norgrove's question in regard to Windows XP to the IT Manager Steve Deon. Mr. Deon responded the City is taking a systematic approach to phase out Windows XP and doing a huge replacement in the next fiscal year, whereby 150 machines will all be upgraded to Windows 7. ADJOURN Moved by Ziarko, seconded by Romano, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 8:28 p.m. MARK CARUFEL, City Clerk