City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, OCTOBER 21, 2014 IN CITY HALL Mayor Pro-Tem Michael C. Taylor called the meeting to order at 7:30 p.m. Mayor Pro-Tem Taylor led the Pledge of Allegiance to the Flag and Mark Carufel, City Clerk, gave the Invocation. Council Members present at roll call: Deanna Koski, Joseph V. Romano, Maria G. Schmidt, Doug Skrzyniarz, Michael C. Taylor, Barbara A. Ziarko. Council Member absent: Richard J. Notte. 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 inclusion of the blue sheet items for agenda item 5. Yes: Koski, Romano, Schmidt, Skrzyniarz, Taylor, Ziarko. Absent: Notte. The motion carried. REPORT FROM CITY MANAGER Mr. Vanderpool reported on the upcoming Pride & Shine Day scheduled for November 1, 2014 and stated residents are encouraged to make their properties "SHINE" in preparation for the winter months. The Citywide cleanup is part of the SHINE (Sterling Heights Initiative for Neighborhood Excellence) program, which is aimed at protecting Regular City Council Meeting Tuesday, October 21, 2014 Page 2 property values by urging all residents to maintain the exterior of their homes. The SHINE initiative works with civic and church groups to provide volunteers for those residents who need help with property maintenance because of age, physical disabilities, or financial hardship. Those interested in volunteering should call the Community Relations Department at 586-446-2470. Mr. Vanderpool reported the City has been researching and preparing for the implementation of the first ever Farmer's Market in Sterling Heights to start in Spring of 2015. He indicated it will be a seasonal market from beginning of June to end of October in Dodge Park. More information will come in the months ahead. Mr. Vanderpool reported on Phase II of Beaver Creek Park construction and stated the main part of this is the installation of a non-motorized path around the perimeter of the park. The path itself is complete and measures approximately 2,100 feet long, which equates to about four tenths of a mile. Pictures were shown of the completed bike-hike trail. Mr. Vanderpool pointed out no general fund money was used for this project, as it was all funded through Community Development Block Grant funds. Mr. Vanderpool reported the "Sterling Frights" Halloween for Sterling Heights' children 12 years of age or younger will be held on Saturday, October 25th at the Recreation Center from 10:00 a.m. to 12:30 p.m. All activities will be open during this time period. Mr. Vanderpool reported the Mid-Term Elections will take place Tuesday, November 4, 2014 and the polls will be open from 7:00 a.m. to 8:00 p.m. He pointed out if a voter has lost their registration card or is unsure where to vote, they can go to the City's website www.sterling-heights.net and click on the Voter Information Center icon found on the Regular City Council Meeting Tuesday, October 21, 2014 Page 3 right hand side of the page. They can then input their voter information and find out where to vote as well as view a sample ballot. Mr. Vanderpool reminded residents the next scheduled City Council Meeting will be on Wednesday, November 5th at 7:30 p.m. in the Council Chambers. Mr. Vanderpool introduced Brian Baker, Finance & Budget Director, to make a presentation on the newly created Great Lakes Water Authority. Mr. Baker, with the use of a power point presentation, gave an overview of the Authority, which is designed to oversee and manage costs of the former Detroit Water and Sewer Department. The GLWA board will consist of two members from Detroit, one appointee each from Wayne, Oakland and Macomb counties, plus one appointee from the governor’s office. Mr. Vanderpool was proud to announce Mr. Baker has been nominated by MACRO to be the County's representative on the GLWA and he will be Macomb County's sole representative on the Board. Mr. Vanderpool introduced Mr. Demont, Federal Coordinating Officer for FEMA. Mr. Demont indicated they have been working side by side with the Michigan State Police, Homeland Security and the Small Business Administration to offer assistance to residents affected by the recent flooding. He stated within Sterling Heights, there are 427 people registered so far and the amount of money distributed is over $200,000. Mr. Demont stated many people still have not registered and they need to do so before the registration deadline of November 25th. He pointed out three ways people can register for assistance: by calling 1-800-631-3362, visiting the website " Disasterassistance.gov" Regular City Council Meeting Tuesday, October 21, 2014 Page 4 or going to the Disaster Recovery Center at Renaissance Community Church on 11 Mile Road. He stated they will continue to work as long as it takes, because their goal is to reach every single residential homeowner in this area and make sure they have a chance to recover and get financial help from FEMA. Councilwoman Schmidt inquired the hours FEMA is at the Church. Mr. Demont responded 8:00 a.m. to 6:00 p.m. Monday thru Saturday. They are closed on Sunday. Mr. Vanderpool reported the Sterling Heights Community Foundation is once again hosting the Second Annual "Puttin on the Ritz" fundraiser. A brief service announcement was shown at this time. This year's event, "Puttin on the Ritz: USO Style" will be held on November 22nd at Villa Penna and will be saluting the defense industry. Mr. Vanderpool thanked Community Foundation Executive Director Michelle Murphy and the entire Foundation board. PRESENTATION Councilwoman Ziarko presented the Nice Neighbor award to Jeff Norgrove, nominated by his neighbor, Dorothy Pennanen. Fire Chief Chris Martin introduced the following five recently hired firefighters and performed the swearing-in ceremony: Matthew Lukas Bradley Bachor Jonathan Feil Stephen Stover Regular City Council Meeting Tuesday, October 21, 2014 Page 5 Matthew Schodowski Councilman Romano questioned the total number of applicants and Chief Martin responded 100, down to 70 after Human Resources review and after the oral interviews, it was down to 52. They ended up with 37 on the list. Mayor Pro-Tem Taylor stated it's good to see the five new firefighters and he congratulated and welcomed all of them to the City of Sterling Heights. PUBLIC HEARING 1. Mr. Dwayne McLachlan, City Assessor, made a presentation on the application by Paramount Precision Products, Inc. for an Industrial Facilities Tax Exemption Certificate at 5545 Bridgewood Drive. He pointed out the company is applying for a fifty percent tax abatement for a proposed personal property investment of $845,500. Mr. McLachlan stated this proposed personal property investment will generate an estimated increase of $2,857 in new City tax revenue over the one-year tax abatement term available after the voter-approval of Proposal 1 in August, 2014. This new investment will generate 11 new jobs in the City of Sterling Heights. A representative from the company is in the audience. Mayor Pro-Tem Taylor opened the public hearing. The following residents spoke: Mr. Joe Judnick spoke against the tax abatement and hoped the Council would vote it down. Mr. Paul Smith echoed the comments of Mr. Judnick and stated he is opposed to tax abatements also. He pointed out the number of taxpayers in Sterling Heights Regular City Council Meeting Tuesday, October 21, 2014 Page 6 and questioned how the 100 property owners are any different from the other 30,000 that pay their tax payments. Mr. Mike Lombardini stated he is favor of exempting everyone from paying personal property taxes, as he feels they are an insult to the American way. Mr. Jeff Norgrove spoke in favor of tax abatements and stated we have to do something to help small businesses. He inquired the number of jobs being created and the square footage of the expansion. Mayor Pro-Tem Taylor closed the public hearing. Moved by Romano, seconded by Skrzyniarz, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by Paramount Precision Products, Inc. at 5545 Bridgewood Drive is hereby approved for a period of one year 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 answered the questions from Mr. Norgrove and indicated 11 new jobs would be created at an annual salary of $40,000. He pointed out this company, in 2011, invested $3.3 million at the same facility and now they are buying new equipment. Councilman Skrzyniarz spoke in favor of the tax abatement. Mayor Pro-Tem Taylor pointed out this taxpayer will be paying more taxes now than they were before. He reminded the residents there is a homestead exemption for them. Vote on motion to approve the one-year tax abatement for Paramount Precision Products: Regular City Council Meeting Tuesday, October 21, 2014 Page 7 Yes: Romano, Skrzyniarz, Taylor, Ziarko, Koski, Schmidt. Absent: Notte. The motion carried. 2. Mr. Dwayne McLachlan, City Assessor, made a presentation on the application by Experi-Metal, Inc. for an for an Industrial Facilities Tax Exemption Certificate at 6385 Wall Street. He pointed out this company operates out of three adjacent industrial buildings and has been in business since 1958. The applicant is applying for a fifty percent tax abatement for a proposed personal property investment to be made at its 89,445 square foot manufacturing facility. The proposed personal property investment totals $10,535,000 and the 2014 portion that is eligible for abatement will generate an increase of $9,072 in new City tax revenue over the one-year tax abatement term. This new investment will also generate 27 new jobs in the City of Sterling Heights. A representative from the company is in the audience. Mayor Pro-Tem Taylor opened the public hearing. Mr. Jeff Norgrove questioned the number of new jobs, the machinery involved and how the City monitors the number of jobs created. Mr. Paul Smith believes tax abatements are bad government. Mr. Joe Judnick questioned prior tax abatements for this company and whether the jobs promised were actually filled. Mayor Pro-Tem Taylor closed the public hearing. Moved by Ziarko, seconded by Schmidt, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by Experi-Metal, Inc. at 6385 Wall Street is hereby approved for a period of one year in accordance with the guidelines established Regular City Council Meeting Tuesday, October 21, 2014 Page 8 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 Ziarko gave the representative from Experi-Metal an opportunity to speak. Ms. Allison discussed the number of jobs promised and number of jobs actually created in the past tax abatements and showed they exceeded the numbers promised in almost every case. Councilwoman Ziarko asked Mr. McLachlan to verify that the City doesn't go out and look for businesses to give tax abatements to. The companies know what is available to them and the criteria they must meet. She pointed out the businesses are still responsible for their own property taxes. Councilwoman Ziarko pointed out when the millage rate was passed for public safety and for our streets, everyone of those businesses still ended up paying the increase. Councilwoman Koski questioned whether the Assessing Office follows up on the businesses to make sure they deliver the jobs promised. Mr. McLachlan responded they do a random audit of the tax abatement certificates. Councilwoman Koski questioned the consequences for not delivering on the number of jobs promised. Mr. McLachlan responded the City Council could revoke their tax abatement certificate. Councilman Skrzyniarz stated this is how tax abatements work and if the City Council denies their rights, the company would not maintain their business in Sterling Heights. Regular City Council Meeting Tuesday, October 21, 2014 Page 9 Councilwoman Schmidt asked Ms. Allison to explain the new equipment they are purchasing. Ms. Allison explained the new equipment they plan to purchase. Councilwoman Schmidt pointed out this company is still paying their fair share of their property taxes. Vote on motion to approve the one-year tax abatement for Experi-Metal, Inc.: Yes: Ziarko, Schmidt, Skrzyniarz, Taylor, Koski, Romano. Absent: Notte. The motion carried. 3. Mr. Dwayne McLachlan, City Assessor, made a presentation on the application by Curtis Metal Finishing Company for an Industrial Facilities Tax Exemption Certificate at 6645 Sims Drive. He explained the company began operations in 1963 and is presently a subsidiary of Commercial Steel Treating Corporation. The applicant is one of the largest bulk metal finishing operators in the United States. They are applying for a fifty percent tax abatement for a proposed personal property investment of $2,146,825. Mr. McLachlan pointed out this personal property investment will generate an estimated increase of $7,254 in City tax revenue over the recommended one-year abatement term and will assist in preserving the Applicant's total employment of 112 jobs. Mayor Pro-Tem Taylor opened the public hearing. Mr. Joe Judnick feels the City is getting short changed with these tax abatements. Mr. Paul Smith believes the 100 businesses should pay their fair share of the taxes like everyone else. Regular City Council Meeting Tuesday, October 21, 2014 Page 10 Mr. Mike Lombardini pointed out Curtis Metal Finishing Company is not a publicly held company; it is a private company. The owners of this company have put their own money into the business. He wants to thank them for doing that and stated he appreciates their business and what their business brings to the City. He is in favor of the tax abatement. Mr. Jeff Myles, owner of Curtis Metal Finishing Company, stated they have been in business over 50 years and they are a family-owned business. Mr. Myles pointed out their business is stable and successful. They are seeking this tax abatement because they want to expand their operations. Mr. Myles was unsure how many jobs they would be creating, but if everything goes according to plan, they would be looking at two additional jobs per shift, which would be three shifts, for a total of six jobs. Mayor Pro-Tem Taylor closed the public hearing. Moved by Skrzyniarz, seconded by Taylor, RESOLVED, that the application for an Industrial Facilities Tax Exemption Certificate by Curtis Metal Finishing Company at 6645 Sims Drive is hereby approved for a period of one year 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 Skrzyniarz thanked the petitioner for expanding their company and choosing Sterling Heights. Vote on motion to approve the Industrial Facilities Tax Exemption Certificate for Curtis Metal Finishing Company: Regular City Council Meeting Tuesday, October 21, 2014 Page 11 Yes: Skrzyniarz, Taylor, Ziarko, Koski, Romano, Schmidt. Absent: Notte. The motion carried. CONSENT AGENDA 4. Mr. Joe Judnick discussed Item D and inquired whether the purchase was to replace an existing piece of equipment. Moved by Koski, seconded by Romano, to approve the Consent Agenda: A. To approve the minutes of the Regular Meeting of October 7, 2014. B. To approve payment of the bills as presented: General Fund - $1,118,824.65, Water & Sewer Fund - $105,918.06, Other Funds - $1,289,804.78, Total Checks - $2,514,547.49. C. RESOLVED, to award the bid for printing of the City of Sterling Heights magazine to Grand Blanc Printing Company, Inc., 9449 Holly Road, Grand Blanc, MI 48439, for a two-year period at the following unit prices: Price per printing (53,500 pieces) $12,120.00 Bundling and Delivery to Post Office Included D. RESOLVED, to award the bid for a tandem axle dump truck, with Knapheide equipment and warranties, to Wolverine Freightliner Eastside, Inc., 107 S. Groesbeck, Mt. Clemens, MI 48043, at a total cost of $222,932. E. RESOLVED, to reject the bid received and authorize the Purchasing Manager to proceed with a re-bid for storm and sanitary sewer repairs. Regular City Council Meeting Tuesday, October 21, 2014 Page 12 F. RESOLVED, to approve final payment to Nagle Paving Company, 39525 W. 13 Mile Road, Suite 300, Novi, MI 48377, in the amount of $16,315.65, plus interest on retainage, for Gardner Street Asphalt Paving City Project #12-232. G. RESOLVED, to receive the lawsuit, Tossa, et al vs. City of Sterling Heights, et al; United States District Court Case No. 2:14-cv-12319-GER-MJH. Yes: Koski, Romano, Schmidt, Skrzyniarz, Taylor, Ziarko. Absent: Notte. The motion carried. CONSIDERATION 5. Mr. Dwayne McLachlan, City Assessor, made a presentation on the request by ATCO Industries, Inc. for an extension of time to complete real and personal property improvements under Industrial Facilities Tax Exemption Certificate #2011-477. Their initial investment was $25,002,150 at 7200 Fifteen Mile Road and the certificate expired on December 31, 2013. The request before City Council is to extend the project to December 31, 2014. Mr. McLachlan explained the City Attorney's office had extensive dealings with the owners of this property. Mr. Donald DeNault from the City Attorney's office explained they have reached an agreement with the company, whereby all of the development issues that were still up in the air as of last week will be handled. The City would have certain rights if the timelines are not met. Mr. Joe Judnick spoke against the extension, stating there are numerous code violations. He is pleased to hear from the City Attorney's office that there is some type of movement on this issue. Regular City Council Meeting Tuesday, October 21, 2014 Page 13 Moved by Romano, seconded by Taylor, RESOLVED, to approve the request to revise the ending date of the real and personal property project period under IFEC #2011-477 at 7200 15 Mile Road from December 31, 2013 to December 31, 2014, with no change to the December 30, 2023 IFEC ending date as issued by the State Tax Commission to ATCO Industries, Inc., subject to the terms and conditions of the Escrow Agreement between the City of Sterling Heights and ATCO Industries, Inc. and authorize the City Manager to sign all documents required in conjunction with this approval. Councilman Romano agreed with the speaker that this company has been difficult, and that it has taken almost four years to complete the project. There is an escrow agreement set up with the company for a substantial amount. Councilman Romano read the list of violations the company has to address. Mayor Pro-Tem Taylor stated this was a request he was going to deny before the escrow agreement was drafted. The City is now in a position where they will get all of the items taken care of by December 31, 2014. Yes: Romano, Taylor, Ziarko, Koski, Schmidt, Skrzyniarz. Absent: Notte. The motion carried. 6. Ms. Kelly Allen, representing the petitioner, Daniel Linnen, explained that Mr. Linnen is the sole owner of Rojo Four, LLC and he has moved his license from the Partridge Creek location to Lakeside Mall. She pointed out a correction to the address as listed, stating that it should be 14600 and not 14000. Moved by Schmidt, seconded by Romano, RESOLVED, that the request from Rojo Four, LLC to transfer interest in and location of an escrowed 2014 Class C liquor Regular City Council Meeting Tuesday, October 21, 2014 Page 14 licensed business with Sunday sales permits, dance-entertainment permit, outdoor service and specific permit from 17420 Hall Road, Suite R-102, Clinton Township to 14600 Lakeside Circle, Space 2110, Lakeside Mall, Sterling Heights, be considered for approval. Councilwoman Schmidt questioned after hour access to the mall by the patrons of Rojo Four. Mr. Linnen explained there would be a separate entrance in the front. Also, there is a patio that has been created by the mall to attract a tenant to that space. They will take that area and create a vestibule, so they will have an exterior entrance between JC Penney and Macy's. Thirty minutes after the mall closes they will close the mall entrance. Councilman Romano asked Mr. Linnen to explain how this restaurant started. Mr. Linnen explained the concept and found that they didn't want to be a high end establishment. This is a smaller footprint than what they had at Partridge Creek. They are very excited with the new concept. Councilman Romano questioned the specialties on the menu. Yes: Schmidt, Romano, Taylor, Ziarko, Koski, Skrzyniarz. Absent: Notte. The motion carried. COMMUNICATIONS FROM CITIZENS Ms. Linda Godfrey, Sterling Heights resident- Fire Department Consolidation, Furlough Days, Chem trails and wind turbines, smart meters. Mr. Nate Shannon, Sterling Heights resident - Farmer's Market, Suggestion for Food Truck Night. Regular City Council Meeting Tuesday, October 21, 2014 Page 15 Mr. Jeff Norgrove - Upcoming Election, Snow Emergencies, Halloween safety. Mr. Joel Thomas, Sterling Heights resident - Upcoming Election/researching candidates. Mr. Joe Judnick - Status of Polish Market on Mound Road, Status of Ping On Restaurant on Van Dyke, Demotion of Police Officer Reese. Ms. Billie Wood, Sterling Heights resident - Safety concerns at Sterling Heights High School, Residential street repairs. Ms. Jackie Ryan, Sterling Heights resident - Smart meters/need for resolution. Mr. Tom Bacon - No Non-Discrimination Ordinance in Eastpointe. Mr. Paul Smith - Compensation for Mr. Baker as GLWA representative for Macomb County, Visit by Governor Synder. Mr. Mike Lombardini - Fire blamed on Smart Meter. Mr. Harry Marchlones - Security at Sterling Heights High School, Against City Council legislating morality. Mr. Dennis White - Chem trails. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Vanderpool addressed the Polish Market on Mound Road and stated the problem is the City has no leverage against this property owner. They are not requesting anything from the City at this time. He stated they met with the property owner last week and they are trying to move forward in a cooperative way. They are committed to finishing the project and it is the City's goal to have the exterior work completed this year. In regard to security at Sterling Heights High School, the City Administration will follow up with the school superintendent, Dr. Livernois. Regular City Council Meeting Tuesday, October 21, 2014 Page 16 In answer to Mr. Smith, Mr. Baker will receive no compensation on the GLWA. There was no report from Mr. Bahorski at this time. Councilman Skrzyniarz extended congratulations to Brian Baker for his appointment on the GLWA. UNFINISHED BUSINESS/NEW BUSINESS 1. Councilman Skrzyniarz commended Administration and Mr. Vanderpool for following through on the walkable communities plan. 2. Councilman Skrzyniarz discussed the senior population and the need to address the long term comprehensive plan for the City as it relates to seniors. He stated the City needs to work with the Southeast Michigan Office of Services for the Aging and work toward a Communities for a Lifetime Certification. 3. Councilwoman Schmidt addressed security at Sterling Heights High School and expressed her surprise that Ms. Wood was not stopped because there is a security person sitting near the commons area at all times. She shares the concerns of Ms. Wood and is glad that she brought this to the City Council's attention. 4. Councilman Romano read a prepared statement regarding the volunteer appreciation dinner next week and stated that Mayor Notte will be receiving a certificate for 30 years of service to the City. He believes the City should do more than present him with a certificate. Councilman Romano requested City Administration research and prepare a resolution for Council consideration at the next City Council meeting on November 5th, renaming the City Center Complex as the "Richard J. Notte City Center". Regular City Council Meeting Tuesday, October 21, 2014 Page 17 5. Mayor Pro-Tem Taylor reminded residents the next regular City Council meeting will be held on Wednesday, November 5 and he urged all residents to go out and vote on November 4th. ADJOURN Moved by Ziarko, seconded by Romano, to adjourn the meeting. Yes: Ziarko, Romano, Schmidt, Skrzyniarz, Taylor, Koski. Absent: Notte. The motion carried. The meeting was adjourned at 10:08 p.m. MARK CARUFEL, City Clerk