City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL WEDNESDAY, NOVEMBER 4, 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 in observance of Veteran's Day, City offices would be closed for business on Wednesday, November 11. Hours of operation would resume on Thursday, November 12. The closure will not affect the City's refuse schedule. Mr. Vanderpool reported the Annual Veterans Day Ceremony will be held at 11 am on Wednesday, November 11 at the Sterling Heights Recreation Center. The ceremony is co-sponsored by local veterans' groups with the assistance of the Sterling Heights Community Foundation and made possible this year with the generosity of Sam's Club Regular City Council Meeting Wednesday, November 4, 2015 Page 2 and Utica Van Dyke Towing. He pointed out the foundation is presently seeking additional sponsors to support the ceremony. Mr. Vanderpool reported the City of Sterling Heights invites volunteers to join us on Saturday, November 14th at 9:30 am for the Fall Pride and SHINE Day. He pointed out they usually have between 75 and 100 volunteers that go out into the community and help individuals that are not able to take care of their properties because of age, physical disability or financial hardship. Mr. Vanderpool reported on some economic development news and announced that Faurecia received a grant from the State of Michigan to expand their operations in Sterling Heights. He pointed out they would be adding 90 new qualified jobs in the City. The City will be assisting them in promoting their new employment opportunities with assistance from Sterling Heights TV and Velocity. It will include a talent mixer to promote the new job opportunities. Mr. Vanderpool complimented the Economic Development team for working with the state to come up with this unique incentive package helping Faurecia to expand in our City. Mr. Vanderpool reported the City is going through a new planning process consistent with the Vision 2030 statement guiding principles and it includes not only the overall master plan, but a parks and recreation plan and our first ever non-motorized plan. He stated the City is seeking citizen input though a community comment map or on the City's website. Mr. Vanderpool recognized the good work from our City Clerk Mark Carufel and the entire City Clerk's staff for their hard work on the election. Regular City Council Meeting Wednesday, November 4, 2015 Page 3 PRESENTATION Mrs. Tammy Turgeon, Community Services/Library Director, acknowledged a donation from James McCloskey, an Eagle Scout candidate from Fraser, Michigan. As part of his Eagle Scout Community Service Project, James partnered with the Sterling Heights Public Library to plan, develop, construct and install five (5) Little Free Libraries with the following major parks: Joseph J. Delia, Jr. Major Park, L.W. Baumgartner Major Park, James C. Nelson Major Park, Dodge Park and Farmstead Park. Mrs. Turgeon pointed out James' grandfather Frank DiMaria, a member of the Historical & Arts Commission, suggested this project for his grandson. Mr. James McCloskey was present along with his Scoutmaster Brad Krzesiak. Moved by Schmidt, seconded by Ziarko, RESOLVED, to acknowledge and accept a donation to the Sterling Heights Public Library of five Little Free Libraries from James McCloskey, Eagle Scout candidate. Councilwoman Schmidt loves the idea and questioned whether the little free libraries would be stocked in the winter months. Mrs. Turgeon responded that they would, since residents do use the parks in the winter. She pointed out James put a latch on the little free libraries in case they decided to lock them up. Councilman Romano questioned whether James would be obtaining another badge for this project and the Scoutmaster pointed out this is one of the requirements to become an Eagle Scout. Regular City Council Meeting Wednesday, November 4, 2015 Page 4 Mayor Taylor thanked James for his great project and stated he would be going from park to park to see the little free libraries. Yes: All. The motion carried. CONSENT AGENDA 1. Moved by Koski, seconded by Romano, RESOLVED, to approve the Consent Agenda: A. To approve the minutes from the Regular Meeting of October 20, 2015, as presented. B. To approve payment of the bills as presented: General Fund - $777,581.91, Water & Sewer Fund - $60,155.43 ,Other Funds - $1,113,514.54, Total Checks - $1,951,251.88. C. RESOLVED, to schedule a special meeting of the City Council for a strategic planning session on Tuesday, January 26, 2016 at 7:00 p.m. and direct the City Clerk to post the appropriate notices in accordance with Michigan's Open Meetings Act. D. RESOLVED, to purchase a Pierce Sable PUC fire pumper and accessories from Pierce Manufacturing, Inc., 2600 American Drive, P.O. Box 2107, Appleton, WI 54912, at pricing available through a Houston-Galveston Area Council cooperative bid in the amount of $570,000, and authorize the City Manager to sign all documents required in conjunction with this purchase. E. RESOLVED, to renew the Pharmacy Management Services Agreement with Navitus Health Solutions LLC for the period of January 1, 2016 through December 31, 2018 with monthly claim administration fees of $2.63 per member Regular City Council Meeting Wednesday, November 4, 2015 Page 5 per month (PMPM) plus an additional $0.35 PMPM for Retiree Drug Subsidy lives (Medicare retirees), and authorize the City Manager to sign all documents required in conjunction with this renewal, upon review and approval by the City Attorney. F. RESOLVED, to purchase vision insurance from EyeMed Vision Care for the policy period January 1, 2016 through December 31, 2018 at the following monthly rates: Member Unit Subscriber $ 4.04 Subscriber + Spouse $ 7.68 Subscriber and Child(ren) $ 8.09 Subscriber + Family $11.89 G. RESOLVED, to approve the Agreement for Towing, Storage and Auction of Accident, Impounded and Other Vehicles and Lease between the City of Sterling Heights and Utica Van Dyke Service, LLC and authorize the Mayor and City Clerk to sign all documents required in conjunction with this approval on behalf of the City. Yes: All. The motion carried. CONSIDERATION 2. Mr. Vanderpool highlighted the new collective bargaining agreement and memorandum of understanding between the City of sterling Heights and Local 1557 of the International Association of Firefighters for the period of July 1, 2015 to June 30 2018: Regular City Council Meeting Wednesday, November 4, 2015 Page 6 The term of the new CBA is three years, from July 1, 2015 to June 30, 2018. Wages - The Union membership will receive wage increases in accordance with the following schedule: Fiscal Year 2015/2016 - a lump sum bonus of 1.0% of salary. Fiscal Year 2016/2017 - a 2.0% wage increase. Fiscal Year 2017/2018 - a 1.5% wage increase. Union members working a forty (40) hour schedule will have two unpaid holidays restored to paid holidays and those working a fifty-six (56) hour schedule will have one unpaid holiday restored. For purposes of Advanced Life Support response, the Fire Department's Rescue Company will be ALS certified and staffed with three firefighters/paramedics when in service. Premium Pay - Fire Equipment Operators (FEOs), licensed paramedics, Battalion Chiefs and forty (40) hour personnel will receive a 1% increase in their respective premium pays. Early Retirement Option Plan (EROP) - This plans allows Union members to retire after 25 years of service and for a period of up to five years have their pension benefit paid into an account within the pension system while continuing to work. The EROP saves the City on medical and hospitalization benefits for a new firefighter since EROP participants keep working. In addition, there are two substantial cost saving features of the EROP as compared to the former Deferred Retirement Option Plan (DROP). First, when EROP participants terminate employment with the City, they forfeit 15% of the Regular City Council Meeting Wednesday, November 4, 2015 Page 7 EROP account balance to the police and fire pension system. In addition, members participating in the EROP that are eligible for retiree health care upon retirement will be required to pay 5% of base pay into the City's retiree health care fund. Mr. Vanderpool pointed out the increase in the fund from $6 million to $80 million in the retiree health care fund. Both of these provisions will further reduce pension and retiree health care legacy costs. The cost neutrality of the EROP has been verified by the City's actuary. Retiree Dental Benefits are eliminated for all Union members hired after December 1, 2015. Longevity - The one-third reduction negotiated in the expiring CBA is made permanent. Deferred Compensation - The deferred compensation benefit is eliminated from the CBA. Status Quo - Starting wages, pension and health care benefits, uniform allowance and food allowance all remain at the reduced levels provided under the expiring CBA. Mr. Vanderpool acknowledged the willingness of this bargaining unit to work collaboratively through these labor issues and expressed special thanks to the union leadership. He also recognized City Attorney Jeff Bahorski and Human Resources Director Walt Blessed for their hard work with the new agreement. Mr. Vanderpool recommended approval of the new CBA. Moved by Ziarko, seconded by Romano, RESOLVED, to approve the collective bargaining agreement and memorandum of understanding between the City of Sterling Heights and Local 1557 of the International Association of Firefighters, a/k/a the Sterling Heights Firefighters Association, AFL-CIO, for the period of July 1, 2015 to June 30, Regular City Council Meeting Wednesday, November 4, 2015 Page 8 2018 and authorize the Mayor and City Clerk to sign all documents required in conjunction with this approval on behalf of the City. Councilwoman Ziarko stated the City Council had an opportunity to be updated on this particular action along the way and she is in favor of it. Councilman Romano pointed out when this City was going through some very stressful financial times and the City asked the unions to give back to the City because we couldn't afford what we had, the Fire Department was the first one to step up and ask how they could assist the City. With this new CBA, the City Council is trying to give them a contract now that is satisfactory to them and to the City and doesn't hurt either of them financially. He stated it is an honor for him to support this motion to approve the CBA. Mayor Taylor stated the residents are grateful to the Fire Department for the work they do and he is happy the City Council could approve the new contract. Yes: All. The motion carried. 3. Mr. Michael Moore, Interim Public Works Director, made a presentation as it relates to the bid specifications for Refuse, Recyclables and Yard Waste Collection Services contract for the period May 1, 2016 through April 30, 2021. He explained the term of the new Contract will be five years and the contract could be extended an additional three years upon mutual consent of the parties. Bidders are required to bid on the current base level of refuse, recyclables and yard waste collection services, which is the traditional collection style the residents have been accustomed to receiving. Alternate 1 provides all of the base level of services with the substitution of mandatory use of 96 or 64 gallon carts for purposes of the weekly curbside pick-up of trash and debris. City Regular City Council Meeting Wednesday, November 4, 2015 Page 9 Administration is recommending that the City secure pricing on this alternate as a means to assess whether increased efficiencies associated with mechanized pickup of the carts will yield material cost savings to the City. In addition, mandatory use of carts will greatly assist in the area of public health as refuse and debris will be better protected from the elements and wildlife. Alternate 2 includes the mandatory use of 96 or 64 gallon carts for purposes of weekly curbside pick- up of trash and debris and the use of 96 or 64 gallon carts for purposes of bi-weekly curbside pick-up of single-stream recyclables. Mr. Moore pointed out the implementation of a curbside recycling program will eliminate the need for subscription-based, voluntary curbside recycling programs and operation of the three recycling centers that are included in the base level of service. City Administration believes that securing competitive pricing for a single-stream recycling program is economically viable for the City. Mr. Moore reviewed the timeline, pending any changes: November 11 - Advertise specifications December 1 - Hold pre-bid meeting December 22 - Bids Due January or February 2016 - Bring formal recommendation for award by City Council May 1, 2016 - New contract would begin. The following residents spoke: Regular City Council Meeting Wednesday, November 4, 2015 Page 10 Mr. Michael Lombardini suggested the City allow for feedback from the residents while waiting for the bids. He also discussed the size of the can and how it would impact the aging population of the City. Mr. Charles Jefferson agreed with Mr. Lombardini on the size of the containers. He also discussed the fact that a lot of residents park on the street which would cause a problem for the mechanical pickups. He is not in favor of the mechanical carts and stated people do not have room to keep the large containers in their garage and he believes there will be a lot of trash all over resident's property. Mr. Michael Radke urged the City to go with the cheapest bidder to save money for the City. He pointed out other cities use this system and they don't seem to have a huge problem with it. He stated the majority of the residents have garbage cans on the side of their homes now. Mr. Joseph Rimarcik spoke against the large 64 or 96 gallon containers and stated it would be a burden for the senior citizens. He reminded the Director of Public Works that the City in 2009 or thereabouts incurred about $200,000 a year in additional fees because the cost of gasoline was built into the contract and if the cost went up to $3.50 or greater, Waste Management billed the City. He wants assurance that the City Council would be looking into that also. Mr. Jeffrey Norgrove inquired the number of City ordinances that would have to be revised because of the size of the garages and the placement of the cans in the garage. He questioned a point made by Mayor Taylor as it relates to the price per resident and stated that is a very important number that should be looked at. He Regular City Council Meeting Wednesday, November 4, 2015 Page 11 inquired the number of Waste Management employees that would lose their jobs as a result of this new contract. Mr. Norgrove addressed the leaking of hydraulic fluid on the City streets and stated that should be addressed in the contract as well. He also believes the large containers would be a burden for the senior citizens. Mr. Dennis White of Sterling Heights is totally appalled by the presentation and totally against what he saw. Mr. Patrick Greve from Waste Management stated he reviewed the packet on the website and addressed some housekeeping items. The pre-bid meeting is normally mandatory and he inquired whether that was intended that way. The fuel provision has been in the contract and all the bidders use that same fuel provision. On Page 6, there is some new language and it is of concern to them. He asked that the City review the language in number 7 - to issue Post-Bid Addendums to clarify or request additional information, including pricing. He stated he has never seen that in 27 years of bidding and he believes all the bidders will have a problem with that. As it relates to recycling, Waste Management has an exclusive license right now that runs through April 30, 2018. He stated the way to resolve this is to move recycling pricing to the latter years of the contract. Moved by Shannon, seconded by Taylor, RESOLVED, to approve the bid specifications for Refuse, Recyclables, and Yard Waste Collection Services for the period May 1, 2016 through April 30, 2021. Councilman Shannon asked for clarification on a statement made by Mr. Moore, stating it would be mandatory recycling. Regular City Council Meeting Wednesday, November 4, 2015 Page 12 Mr. Moore responded they would not force anyone to recycle, but everyone would be afforded the opportunity to have a recycle cart. Councilman Shannon pointed out there are three different versions to this bid and they want to have them priced out. The base price continues the status quo, the next two bids look at adding new services. His goal is to save money for the taxpayers and possibly increase services. Councilwoman Schmidt feels this issue is being rushed and if the City Council approves the bid specs, residents would not have an opportunity to submit their input. Also, the issue of post-bid addendums is changing the rules in the middle of the game and not fair to anyone who bids on this contract. She pointed out City Council members are all elected to office to save the taxpayers money. The City has the luxury of a call center now with Waste Management and she wants to make sure that is in the specifications. She questioned the possibility of a smaller mandatory cart, less than 64 gallon. Also, she stated Mr. Jefferson brings up a great point about people parking on the streets and that would cause a hardship for the mechanical pickups. She stated there is no reason for this to be pushed through as quickly as it is. The City is in the position to possibly extend their contract with Waste Management and she cannot support this action tonight. Councilman Skrzyniarz stated the City Council is just setting this up tonight so we can get responses back from potential bidders on these options. In terms of deciding on the base bid, alternate 1 or alternate 2 the City Council is not deciding on that tonight. The issue of resident feedback is ongoing and he looks forward to hearing from them. Regular City Council Meeting Wednesday, November 4, 2015 Page 13 Councilman Skrzyniarz asked Mr. Moore to explain further the post bid addendum issue and his reasoning. Mr. Moore believes that the addendum clause was in there before. It does not generally change anything in the bid process; it is more informative. Councilwoman Ziarko stated she is opposed to going out for bids at this time and feels the City Council is rushing things. The City has an opportunity to save money initially if we decide to extend the contract for a year. She doesn't believe bidding at this time is the best thing for the residents. Councilwoman Ziarko questioned the use of the containers and whether the residents would have to put everything in bags and then throw them into the can or just throw their trash into the cans. She is not comfortable with the accelerated timeline. Councilwoman Ziarko questioned the average number of bags per household. She inquired what would happen if Waste Management did not get the contract for waste removal and if that meant the City would have two different contractors in the City. She stated she will not support this. Councilwoman Koski read the 100 page bid specifications and doesn't have a problem. She discussed the cost accelerator in regard to gasoline and asked Mr. Vanderpool to comment on that. Mr. Vanderpool responded this has been a standard provision in all of our prior agreements because it helps to isolate our costs. Councilwoman Koski discussed the issue of the trucks being able to get down the street to dump the containers and inquired whether the City would have to restrict parking on the streets on garbage pickup day. Regular City Council Meeting Wednesday, November 4, 2015 Page 14 Mr. Vanderpool stated in most cases they are able to maneuver around the cars, grab the container with the robotic arm and dump the container. Councilwoman Koski questioned the possibility of a damaged container and replacement by the company. Mr. Vanderpool responded if the containers are damaged, they would be replaced. Councilwoman Koski discussed the fact that some seniors might put out a small bag at the curb and she inquired whether that would be picked up. Mr. Vanderpool responded the contractor would be required to pick up the bags. Councilwoman Koski discussed mandatory carts and if the residents would be forced to have them. She stated she is in favor of going out for bids now, but not in favor of the mandatory containers. Councilman Romano stated Waste Management has been very good to the City. They have been fair and consistent and worked with the City for a long time. He doesn't see a problem with extending their contract for another year. He discussed the contract with Waste Management for recycling and stated the City might be opening up themselves to a lawsuit and he is not ready to get into another lawsuit. In regard to the mandatory containers, he doesn't agree with that. Also, the two containers on display will not fit in his garage. He questioned why Rizzo contributed recently to campaigns of council members when they had not made contributions in the past and that perhaps promises were made. Councilman Romano stated he will vote no on this issue and ask Council to reconsider their motion and postpone the item. Regular City Council Meeting Wednesday, November 4, 2015 Page 15 Mayor Taylor resents the bulk of Councilman Romano's comments and implying that his vote tonight would be the result of a promise he made to anyone except the 142,000 residents of this City. He stated we have a $5 million contract that we can save a significant amount of money and add additional services. Mayor Taylor pointed out that this process has been going on for more than a year and this Council has been in discussion with the Administration for a long time in anticipation of this day. He is prepared to vote on every item in the bid specs. Mayor Taylor doesn't believe the City is in any danger of liability. Waste Management has a contract to provide subscriber based curbside recycling through 2018 and if they want to continue doing that, the City will not breach that contract. Mayor Taylor asked Mr. Bahorski if Waste Management would have the opportunity to opt out of the subscriber based curbside recycling and Mr. Bahorski responded they have a 90-day provision to opt out. Mayor Taylor asked if Waste Management would have to provide a reason and Mr. Bahorski responded they do not need just cause. Mayor Taylor questioned whether the City could cancel their contract at any time for any reason. Mr. Bahorski responded he would have to check on that provision. Mr. Greve from Waste Management was right, they do have an exclusive license through 2018. They did analyze that and built in a degree of flexibility to address that situation. Mayor Taylor questioned whether approving the bid specifications tonight constitutes a breach of the City's contract with Waste Management to have an exclusive license for subscriber based curbside recycling through 2018. Regular City Council Meeting Wednesday, November 4, 2015 Page 16 Mr. Bahorski responded, no, it is hard to speculate who would get the bid, but if Waste Management got it back there would be no issue at that point. The only conflict is with Option 2, but we did consider that in the bid specs. Mayor Taylor stated the City is not breaching the contract by asking for bids. The City will not open itself up to liability. Everything is being done correctly and the City has had over a month to digest the information and make a determination about these bid specifications. He stated the bid responses will help the city determine the best service for the best price. He pointed out the City Council would still have the opportunity to extend the contract with Waste Management if they don’t like the bids that come back. Councilwoman Ziarko stated she spoke to Mr. Conigliaro and he was in favor of extending the contract with Waste Management for two years and then going out for bids when the recycling contract expires. Roll call vote on motion to approve bid specifications: Yes: Shannon, Taylor, Skrzyniarz, Koski. No: Schmidt Ziarko, Romano. The motion carried. 4. Moved by Skrzyniarz, seconded by Taylor, RESOLVED, to appoint Kozeta Elzhenni to the Citizens Advisory Committee - Community Development Block Grant to a term ending June 30, 2016, 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. Regular City Council Meeting Wednesday, November 4, 2015 Page 17 Moved by Shannon, seconded by Taylor, RESOLVED, to postpone the appointments to the Solid Waste Management Commission to the November 17th City Council meeting. Yes: All. The motion carried. COMMUNICATIONS FROM CITIZENS Mr. Jeffrey Norgrove - Results of election; Not allowing future discussion on smart meters. Mr. Charles Jefferson of Sterling Heights - Election results; Companies obeying ordinances. Mr. Joseph Rimarcik - Expiration dates for tax millages, City pension plans, Retiree medical reserves, Police & Fire Pension, General Administrative pension. Mr. Michael Lombardini - Volunteer dinner, election workers. Mr. Harry Marchlones of Sterling Heights - Congratulations to Mayor and City Council on their reelection; Lack of young people exercising their right to vote. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Vanderpool responded to comments from Mr. Rimarcik as it relates to health care and the police and fire pension funds and extended an invitation for him to sit down with the City's financial team to review all his questions. There was no report from Mr. Bahorski at this time. Councilman Skrzyniarz thanked the poll workers for all their hard work. He also thanked J. B. Donaldson, the company that is developing the property (formerly Sunnybrook) for choosing to come to Sterling Heights and bringing a lot of new jobs into our community. Regular City Council Meeting Wednesday, November 4, 2015 Page 18 Councilman Skrzyniarz discussed the experience he has gained from his colleagues on the City Council. He does take offense to one of his colleagues challenging his integrity to make their argument look better. Councilman Romano thanked all the voters who came out to vote. Councilwoman Ziarko thanks everyone for all they did for this election and is glad that it is over. She inquired when she could bring ideas to the City Manager regarding strategic planning. Councilwoman Schmidt thanked all the voters who came out to vote and stated it is such an important right that people have. She also thanked all the employees who put forth so many hours into this election over so many months. Councilwoman Koski thanked everyone that came out to vote. She looks forward to the next two years. She stated to Councilman Romano that she thought we always agreed that we would vote our heart so we could sleep at night. The City Council needs to all get along and move the City forward. Councilman Shannon was disappointed in the comments made by Councilman Romano and stated there is no basis in what he said. He wants to see the City Council get past this issue. He thanked all the voters for their confidence in him and thanked all the election workers. Mayor Taylor stated in response to Mr. Rimarcik, he believes he wants an update on what is going on with the pension system and how the residents could find out whether the City is getting their money's worth. He stated the information is provided on a month by Regular City Council Meeting Wednesday, November 4, 2015 Page 19 month basis in the minutes of the pension board meetings and he is always welcome to attend those public meetings. Mayor Taylor thanked all the voters and poll workers. ADJOURN Moved by Ziarko, seconded by Romano, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 9:33 p.m. MARK CARUFEL, City Clerk