City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, JUNE 16, 2015 IN CITY HALL Mayor Michael C. Taylor called the meeting to order at 7:30 p.m. Mayor 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, Nate Shannon, 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 on the DTE Energy Vegetation Management Program and the work that would be completed in the next couple of months. He presented a visual overview of the areas of the City where DTE would be trimming trees and stated the residents would be notified in advance if their property is affected. The tree trimming is scheduled for June through September. Mr. Vanderpool presented an overview of the various road projects for 2015, which included the Local Road Reconstruction Program, the Sectional Concrete Repair Regular City Council Meeting Tuesday, June 16, 2015 Page 2 Program and the Major Road Project for 19-1/2 Mile Road from Utica Road to the railroad tracks. He was pleased to announce that Mound Road sectional repairs have been completed. The Van Dyke reconstruction program is going along very smoothly and the roadway work is on schedule to be completed in November of this year. Mr. Vanderpool reported City Hall west parking lot improvements are underway. The parking lot reconstruction at Fire Station No. 5 is also well underway. He presented a summary of costs for all road projects in the total amount of $48,528,000. PRESENTATION Councilman Shannon presented the Nice Neighbor Award to Gunter Reuss, nominated by his neighbor, Douglas Connelly. PUBLIC HEARING 1. Mr. Donald Mende, City Planner, made a presentation in regard to the request for approval of a conceptual plan for a residential Planned Unit Development for property situated on the west side of Ryan Road between 19 Mile Road and Lakeforest Drive in Section 6, Case No. PPCM-1144-Ryan Road, LLC. He explained the proposed residential development consists of three vacant parcels, each with approximate dimensions of 133' by 568'. The combined frontage on Ryan Road totals 399' with a combined area of 5.2 acres. Mr. Mende stated two of the three parcels included in this request were formerly owned by the City. There will be 11 single-family residential developments on this property, with square footage ranging from 2,000 to almost 3,800. He pointed out the Planning Commission voted Regular City Council Meeting Tuesday, June 16, 2015 Page 3 unanimously to recommend that City Council approve the residential Planned Unit Development. Mayor Taylor opened the public hearing to the audience. There was no audience participation. Mayor Taylor closed the public hearing. Moved by Romano, seconded by Ziarko, RESOLVED, to approve the concept plan for a residential Planned Unit Development for property on the west side of Ryan Road, between 19 Mile Road and Lakeforest Drive in Section 6, Case No. PPCM-1144-Ryan Road, LLC. Both Councilman Romano and Councilwoman Ziarko were comfortable with the request. Councilman Shannon noted that three residents spoke at the Planning Commission meeting in favor of the request. Yes: All. The motion carried. ORDINANCE INTRODUCTION 2. Mr. Brian Baker, Finance & Budget Director, explained the contributions to fund balance in the General Fund will increase by nearly $300,000 as a result of revenues coming in higher than projected expenditures. For the year, $1.85 million is now estimated to be added to reserves, which is very near the $1.8 million planned in the original budget approved back in May, 2014. He explained the budget for the other City funds decreased by $2 million primarily due to the timing of payments for the Van Dyke and 19 ½ Mile Road projects. Additional funds are included for sectional major road repairs needed over this past winter, for the expediting of neighborhood road repairs this summer prior Regular City Council Meeting Tuesday, June 16, 2015 Page 4 to the start of the next fiscal year where the projects are budgeted and funding for the needed City Hall and Fire Station #5 parking lot repairs. Moved by Schmidt, seconded by Ziarko, RESOLVED, to introduce the final amendment to the Appropriations Ordinance for the 2014/15 fiscal year. Both Councilwoman Schmidt and Councilwoman Ziarko were pleased to see more money going into the bank and thanked Mr. Baker for all the work he does for the Council and residents. Mayor Taylor congratulated Mr. Baker and his staff for the good work they do. Yes: All. The motion carried. CONSENT AGENDA 3. Mr. Jeffrey Norgrove questioned the Great Lakes Water Authority issue and requested Mr. Baker give an update on it. He asked Mr. Vanderpool to reassure the residents that they are getting the best deal on rock salt (Item D). In regard to Item I, Mr. Norgrove inquired whether this has anything to do with Maple Lane remaining a golf course. Mr. Norgrove questioned Item L and inquired whether this had anything to do with the discussions last summer. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda: A. To approve the minutes of the Regular Meeting of June 2, 2015, as presented. Regular City Council Meeting Tuesday, June 16, 2015 Page 5 B. To approve payment of the bills as presented: General Fund - $862,631.41, Water & Sewer Fund - $2,342,578.73, Other Funds - $2,117,965.35, Total Checks - $5,323,175.49. C. RESOLVED, to approve the Legal Services Agreement between the City of Sterling Heights and Keller Thoma, P.C. for special legal counsel services - labor law and authorize the Mayor and City Clerk to sign it on behalf of the City. D. RESOLVED, to purchase 6,000 tons 'early delivery' road salt and 5,500 tons of 'seasonal delivery' road salt at pricing available through the City of Farmington Hills' cooperative bid for the 2015/2016 winter season. E. RESOLVED, to approve the service agreement between the City of Sterling Heights and Comerica Bank for the purchasing card program and authorize the City Manager to sign all documents associated with this approval. F. RESOLVED, to award the bid for print shop/copy paper and envelopes to Xpedx Paper & Graphics, Inc., 1376 Rankin, Troy, MI 48083, for the period of six months from date of bid award at the unit prices bid, and authorize the City Manager to exercise the option to extend the bid period for an additional six- month period under the same terms and conditions upon mutual consent. G. RESOLVED, to: a) Award the bid for tree and stump removal, inclusive of the option for storm damage removal services as the primary vendor, to Wonsey Tree Service, Inc., P.O. Box 1142, Alma, MI 48801 for a two-year period at unit prices bid. Regular City Council Meeting Tuesday, June 16, 2015 Page 6 b) Award the option for storm damage removal services as secondary vendor, only, to Advanced Tree Experts, 10811 Alpine, Riley, MI 48041, for a two-year period at the unit prices bid. H. RESOLVED, to accept the qualifications of FDM Contracting, Inc., Pamar Enterprises, Inc., Superior Excavating, Inc., and V.I.L. Construction, Inc. to perform underground repair work on municipal storm and sanitary sewers. I. RESOLVED, to award the bid for Maple Lane Golf Course Parking Lot Repairs, City Project #14-264, to Asphalt Specialists, Inc, 1780 E. Highwood, Pontiac, MI 48340 in the amount of $143,697.50, and authorize the Mayor and City Clerk to sign all required documents on behalf of the City. J. RESOLVED, to approve the purchase of excess workers compensation from the Accident Fund Insurance Company of America through CompOne Administrators, Inc./FDI Risk Managers, Inc. for a one-year period at an estimated annual cost of $71,915, and authorize the City Manager to sign all documents required in conjunction with this approval, upon review and approval by the City Attorney. K. RESOLVED, to approve the Administrative Services Contract with Blue Cross Blue Shield of Michigan for the period July 1, 2015 through June 30, 2016, with monthly fees of $54.41 per employee/retiree contract for administrative services and $37.87 per employee/retiree contract for specific stop loss insurance at a $250,000 self-insured retention for the self-insured health care benefits plan, and Regular City Council Meeting Tuesday, June 16, 2015 Page 7 authorize the Mayor and City Clerk to sign all documents required in conjunction with this approval, upon review and approval by the City Attorney. L. RESOLVED, to approve the City of Sterling Heights Title VI Plan, as amended, and authorize the Mayor to sign, as applicable, all documents required in conjunction with this approval. M. RESOLVED, to approve the settlement agreement and release in resolution of Donaldson vs. City of Sterling Heights, et al; Macomb County Circuit Court Case No. 12-3711-NI and authorize the City Manager to sign all documents required in conjunction with this approval. Yes: All. The motion carried. CONSIDERATION 4. Moved by Romano, seconded by Ziarko, RESOLVED, to nominate Juli Sala for consideration as an appointee to the Board of Ordinance Appeals I at the July 7, 2015 regular City Council meeting. Yes: All. The motion carried. Moved by Romano, seconded by Ziarko, RESOLVED, to postpone the nomination of an appointee to the Board of Ordinance Appeals II to the Regular City Council meeting of August 18, 2015. Yes: All. The motion carried. 5. Mayor Taylor recommended the reappointment of Marvin J. Miller to the Economic Development Corporation/Brownfield Authority. Regular City Council Meeting Tuesday, June 16, 2015 Page 8 Moved by Romano, seconded by Ziarko, RESOLVED, to appoint Marvin J. Miller to the Economic Development Corporation/Brownfield Authority to a term ending June 30, 2021, subject to the appointee meeting the qualifications set forth in Charter §4.03 and taking oath of office within two weeks. Yes: All. The motion carried. Mayor Taylor recommended the reappointment of Michael J. Lombardini to the Elected Officials Compensation Commission. Moved by Romano, seconded by Schmidt, RESOLVED, to appoint Michael J. Lombardini to the Elected Officials Compensation Commission to a term ending June 30, 2022, subject to the appointee meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Mayor Taylor recommended the reappointment of Omie Brooks, Susan Kattula, Andrew Pulford and Iqbal Singh to the Ethnic Community Committee. Moved by Ziarko, seconded by Schmidt, RESOLVED, to appoint Omie Brooks, Susan Kattula, Andrew Pulford and Iqbal Singh to the Ethnic Community Committee to a term ending June 30, 2018, subject to the appointees meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Mayor Taylor recommended that the unexpired term on the Ethnic Community Committee be postponed to the meeting of August 18, 2015. Regular City Council Meeting Tuesday, June 16, 2015 Page 9 Moved by Romano, seconded by Schmidt, RESOLVED, to postpone the appointment to fill the unexpired term on the Ethnic Community Committee to the Regular City Council meeting of August 18, 2015. Yes: All. The motion carried. Mayor Taylor recommended the reappointment of Laurel Johnson and Victor Martin to the Local Development Finance Authority. Moved by Ziarko, seconded by Schmidt, RESOLVED, to appoint Laurel Johnson and Victor Martin to the Local Development Finance Authority to a term ending June 30, 2019, subject to the appointees meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Moved by Ziarko, seconded by Schmidt, RESOLVED, to appoint Ronald Bindle and Grace Finazzo to the Arts Commission to a term ending June 30, 2019, subject to the appointees meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Moved by Ziarko, seconded by Taylor, RESOLVED, to appoint Steven Duncan, Gary Isom and Darlene MacLeod to the Beautification Commission to a term ending June 30, 2018, subject to the appointees meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Regular City Council Meeting Tuesday, June 16, 2015 Page 10 Councilman Romano pointed out that Darlene MacLeod attended only 1 out of 5 meetings and she should be contacted to see whether she is able to serve on this commission. Councilwoman Ziarko amended her motion: Moved by Ziarko, seconded by Taylor, RESOLVED, to appoint Steven Duncan and Gary Isom to the Beautification Commission to a term ending June 30, 2018, subject to the appointees meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Moved by Romano, seconded by Schmidt, RESOLVED, to postpone the appointment to the Beautification Commission to the Regular City Council meeting of July 7, 2015. Yes: All. The motion carried. Moved by Romano, seconded by Ziarko, RESOLVED, to postpone the remaining two appointments to the Beautification Commission to the Regular City Council meeting of August 18, 2015. Yes: All. The motion carried. Moved by Ziarko, seconded by Romano, RESOLVED, to postpone the appointment to the Board of Code Appeals to the Regular City Council Meeting of August 18, 2015. Yes: All. The motion carried. Mayor Taylor pointed out that he would be voting no on the reappointment of Charles Jefferson to the Citizens Advisory Committee-Community Development Block Grant if a motion is made to appoint him for the reason that Mr. Jefferson has been very vulgar at Regular City Council Meeting Tuesday, June 16, 2015 Page 11 the City Council meetings and doesn't portray the type of behavior for an appointee on a City commission. Moved by Romano, seconded by Taylor, RESOLVED, to appoint Judith Foley, Paul Palmeri, Joanne L. Paraventi, Grace Pedrie, Jeanne Schabath and Janet Widrig to the Citizens Advisory Committee-Community Development Block Grant to a term ending June 30, 2016, subject to the appointees meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Moved by Romano, seconded by Taylor, RESOLVED, to postpone the remaining appointment to the Citizens Advisory Committee-Community Development Block Grant to the Regular City Council meeting of August 18, 2015. Yes: All. The motion carried. Moved by Romano, seconded by Schmidt, RESOLVED, to appoint John S. Gardiner and Joseph Niman Jr. to the Election Commission to a term ending June 30, 2017, subject to the appointees meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Councilman Romano asked if the appointments to the Historical Commission could be postponed to allow him an opportunity to speak to some of the members. Moved by Romano, seconded by Taylor, RESOLVED, to postpone the appointments to the Historical Commission to the Regular City Council meeting of July 21, 2015. Yes: All. The motion carried. Regular City Council Meeting Tuesday, June 16, 2015 Page 12 Mayor Taylor asked Mr. Bahorski if there was a Historical Commission meeting between now and then whether the existing members would continue to serve. Mr. Bahorski responded they would serve until they were replaced. Moved by Ziarko, seconded by Romano, RESOLVED, to postpone the appointment to the Housing Commission to the Regular City Council meeting of August 18, 2015. Yes: All. The motion carried. Moved by Ziarko, seconded by Romano, RESOLVED, to appoint June Hughes to the Library Board of Trustees to a term ending June 30, 2018, subject to the appointees meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Moved by Romano, seconded by Schmidt, RESOLVED, to appoint Henrietta Baczewski and Wayne Davis to the Solid Waste Management Commission to a term ending June 30, 2018, subject to the appointees meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. 6. Moved by Skrzyniarz, seconded by Ziarko, RESOLVED, to appoint Mayor Michael C. Taylor as the City's elected official delegate to SEMCOG. Yes: All. The motion carried. Mayor Taylor asked Mr. Brian Baker to make a presentation explaining the status of the Great Lakes Water Authority. Regular City Council Meeting Tuesday, June 16, 2015 Page 13 Mr. Brian Baker, Finance & Budget Director, explained the vote was held last Friday to establish the GLWA and Macomb County was the only no vote. Great Lakes Water Authority will now be the provider of wholesale water and sewer services that the Detroit Water & Sewer used to provide. It is a 40-year lease and in effect the GLWA would be paying $90 million more into the system as a result of this lease. He stated the County wanted a regional system, a fair system with equal protection built in so we would have a partnership. The County had five concerns that were never resolved: The $90 million should only be paid into the system if there are savings achieved. We wanted them to link that so we would only pay money if an actual savings were achieved. The $90 million equates to about a 10% water and sewer hike with this deal than without this deal. Our second concern is that we wanted all communities to be treated the same. Unfortunately, Detroit will only be paying into the system what they collect from the residents, not what the residents use in water. We don't believe that would be fair. The third issue is the $50 million was supposed to be used solely for repairs, but the City of Detroit was using that money to subsidize what they were paying. The fourth issue is the County only gets one vote and Detroit gets two. Without Detroit's cooperation and their two votes, we are locked into this inequity going forward. The fifth issue is that we believe the state should have solved the Highland Park $25 million debt issue, but Detroit Water and Sewer came in and helped them out and now Highland Park is not paying, but the suburbs are paying. Regular City Council Meeting Tuesday, June 16, 2015 Page 14 The County believes without proper protections in place, without some of our concerns being addressed and without saving money, we didn't believe this was a good deal, but it did pass and we are still on the authority. Councilman Romano questioned the $4.5 million water subsidy for the City of Detroit. Mr. Baker responded that is called a WRAP fund, water residential assistance program, and it is for all low income residents in all the communities. It is 0.5% of the total system revenues that will be set aside. Councilman Romano stated it is simple if you pay your water bill you get water and if you don't pay for the water it is shut off. He expressed concern with the amount of money going to Sterling Heights residents. Councilman Skrzyniarz stated the problem in Detroit is not just residential. They also have problems with the corporate and industrial customers. Mr. Baker responded this is only residential. He doesn't believe they are having as much difficulty now with the corporate ones. Councilman Skrzyniarz inquired whether there is anything the authority could do as it pertains to the corporate clients. Mr. Baker responded one of the protections they put in place if shut offs are not working and if unpaid collections increase, the Authority has the right to bill, collect and shut off on behalf of the City of Detroit. Councilman Skrzyniarz stated when it comes back in front of them and other cities, he inquired what would happen if cities vote it down. Regular City Council Meeting Tuesday, June 16, 2015 Page 15 Mr. Baker responded in the model water contract, there is a clause that you cannot unreasonably withhold your consent. At the end of the day, we are only transferring it from one authority to another. It could hold up the process because you could not sell bonds until the majority of the contracts are transferred. Councilwoman Ziarko inquired whether Mr. Baker is speaking on behalf of the County when he says, "we thought". Mr. Baker responded that is correct. He is representing the County as the County Execs appointee and the Board of Commissioner's appointee. Councilwoman Ziarko inquired whether Mr. Baker feels he would be the lone vote every time, as this is the impression she is getting. Mr. Baker responded Oakland County will have to vote the way they see things and he believes they see things the way he does, but for whatever reason they voted in favor of it. The job is to make sure that all residents, whether in Sterling Heights or Detroit, are paying the lowest rates as possible. Councilwoman Ziarko inquired if it would have made a difference if Oakland County voted the same as Macomb County. Mr. Baker responded the lease would not have been approved, it requires a 5 of 6 votes. Councilwoman Ziarko stated the City could not have asked for a better person to represent the County of Macomb. Councilwoman Schmidt inquired who sets up the qualifications for the residents who qualify for the WRAP program. Regular City Council Meeting Tuesday, June 16, 2015 Page 16 Mr. Baker responded there is an RFP out there for someone to independently administer the $4.5 million and the Great Lakes Water Authority would set the guidelines and they would administer them. Councilwoman Schmidt thanked Mr. Baker for looking out for all of the residents in Sterling Heights, Macomb County and other communities as well. Councilwoman Koski inquired whether the new director or administrator that they are going to appoint could make changes that would coincide with what Mr. Baker is suggesting. Mr. Baker responded he voted against the search for a new director for one year for continuity and bond ratings, but whoever is CEO, the one thing they would tie their performance to is achieving savings. Mayor Taylor stated in regard to the five points of concern expressed by Mr. Baker, he questions the second one that all communities are not paying the same and Detroit is only paying into the system what they actually collect and there are 30,000 ratepayers right now that are delinquent. He stated there are probably about 50,000 ratepayers in all of Sterling Heights that are paying toward that $90 million more to get the same results. He inquired whether that number includes an estimate of what the deficiency would be for what Detroit would not be paying into the system that other communities would be. Mr. Baker responded their current un-collectables are $60 million. They said they set up a reserve fund to help offset some of their bad debt, but it is too little at $7 million the first year out of $60 million, and they are using the lease payment to backstop that $7 million. Regular City Council Meeting Tuesday, June 16, 2015 Page 17 Mayor Taylor asked Mr. Baker if the Detroit appointees are Mayoral appointments and he indicated yes he believes that is the case. Mayor Taylor asked Mr. Baker to further explain the $25 million problem with Highland Park. Mr. Baker responded Highland Park is not even billing some of their customers. They are trying to get their billing system up and running, but there is a large amount that has to be paid. Mayor Taylor stated the City of Detroit is getting everything they want at the expense of all of its customers. COMMUNICATIONS FROM CITIZENS Mr. Jeffrey Norgrove – Thanked City Council for honoring his request and letting Mr. Baker make the presentation; Need for Board and Commission members and recommended Mrs. Early; Farmer's Market; Fireworks ordinance; Source Newspaper Speak Out column. Mr. Michael Lombardini – Thanked Mr. Baker for his service to the City and County; Board and Commission appointments/consideration of Mrs. Early; Mr. George Trumpeter, 38135 Sumpter Drive - Cane Corso dogs attack/911 response time. Mrs. Barbara Trumpeter - 911 operator/response time. Mayor Taylor stated the City was made aware of this incident a couple days ago and if they wanted to give their information to the City Clerk, they would be provided with a response from the City administration. Regular City Council Meeting Tuesday, June 16, 2015 Page 18 REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Vanderpool responded to the complaint about the dogs attacking and killing a cat. He stated the City has an ordinance against vicious dogs and five dogs are being held at the animal shelter and will not be released. The owner will have to go through the legal process and make an appeal to the board to get her dogs back. If her appeal is denied, the dogs will be euthanized. With respect to the response time, the tapes were reviewed and the animal control officer was on the site within 14 minutes. The issue was with the fact that there was not an exact location given and the animal control officer was going to different locations. He also pointed out a police officer arrived on the scene within four minutes after the gun shot. The City will continue to review this process so that it never happens again and they will vigorously prosecute this case. Mr. Vanderpool responded to the question about the Maple Lane Golf Course parking lot and stated that is a follow up to the emergency sanitary repair that the City had to make last year as a result of the flood that occurred on August 11th. Mr. Vanderpool discussed the Fireworks Ordinance regulations and the changes in the law. There was no report from Mr. Bahorski. Councilman Skrzyniarz discussed the proposed ordinance for landscaping that appeared in the Council backup last meeting and in the Advisor Source newspaper. He pointed out that issue was discussed by the Planning Commission and it appeared on the draft City Council agenda, but was then removed from the City Council agenda. He wanted to Regular City Council Meeting Tuesday, June 16, 2015 Page 19 make sure that residents understand that it was not an ordinance drafted by the City Council and it is not something that he would support. Councilman Skrzyniarz pointed out there would be more and more produce in the upcoming months at the Farmer's Market, but there are many other things available. He urged residents to come out and enjoy the food trucks before the Music in the Park. Councilman Skrzyniarz discussed the regional water system and stated cities need to work together, but it is very difficult when you set a precedence like this and tell a county like Macomb County to be treated the way that we were. Councilwoman Koski stated it was nice of Mr. Norgrove to suggest that the City Council appoint Mrs. Early to a board or commission, but she was appointed to the Beautification Commission and resigned on June 11th last year, which could be the reason she was not reappointed. Councilwoman Koski asked Mr. Vanderpool to address another question from Mr. Norgrove as it relates to Item L on the Consent Agenda. Mr. Vanderpool stated the City Council approved an amendment to our Title VI Civil Rights Act of 1964 plan that has to be on file with the Federal Government and the State. The plan was last updated in 2005 and now has to be updated to include an LEP (Limited English Proficiency) and Environmental Justice. This is a routine update the City has to make. Councilman Romano inquired whether a motion could be made or the legal staff prepare something that allows the City Council to appoint people who are currently serving on a Regular City Council Meeting Tuesday, June 16, 2015 Page 20 board or commission and want to be reappointed by a single vote instead of having to go through the two-step process. ADJOURN Moved by Ziarko, seconded by Taylor, to adjourn the meeting. Yes: All. The motion carried. The motion was adjourned at 9:07 p.m. MARK CARUFEL, City Clerk