City Council

Delivered April 28, 2017 Agenda Item 5-A.1 Meeting: May 3, 2017 CITY OF STERLING HEIGHTS MINUTES OF SPECIAL MEETING OF CITY COUNCIL TUESDAY, APRIL 11, 2017 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 Melanie Ryska, Deputy City Clerk, gave the Invocation. Council Members present at roll call: Deanna Koski, Maria G. Schmidt, Nate Shannon, Liz Sierawski, Michael C. Taylor, Barbara A. Ziarko. Council Member absent: Gary Lusk. Also Present: Mark Vanderpool, City Manager; Marc D. Kaszubski, City Attorney; Melanie Ryska, Deputy City Clerk; Carol Sobosky, Recording Secretary. APPROVAL OF AGENDA Moved by Koski, seconded by Ziarko, to approve the Agenda as presented. Yes: All. The motion carried. Mayor Taylor stated that Mr. Lusk is not able to attend tonight’s meeting due to an out-of-town work event that was scheduled prior to his appointment to the Council, so he is excused from tonight’s meeting. BUDGET WORKSHOP DISCUSSION 1. Presentation of Budget Capital Project & Other City Funds City Administration Department Administrative Services Division Special City Council Meeting Tuesday, April 11, 2017 Page 2 Finance and Budget Division Fire Department City Development Department Mr. Vanderpool stated he is pleased to present the proposed 2017/2018 Budget, and informed this is the first of three budget hearings. There will be a few presentations, and then there will be time to discuss questions from Council and audience members. He stated it is preferred that all questions be held until presentations are completed. He advised that, after the presentations, the Appropriations Ordinance will need to be introduced, which will allow Council to make amendments as they proceed with the hearings. He informed the City’s proposed budget is online for anyone interested. The focus is on quality of life amenities, increased public safety services and a strong focus on infrastructure improvements. A video was shown at this time. Ms. Jennifer Varney, Finance & Budget Director, provided an overview of the individual departments with the use of a PowerPoint presentation. She explained the total proposed City budget for 2018 is $192.3 million, which is broken down into five major fund types. The largest is the General Fund at $93.8 million for the City’s eight operating departments. There are three debt funds that total $3.2 million, or 1.7% of the budget, and they include the debts for the Fire Station improvements, City-issued road improvement bonds and the City Hall improvements from 2000. The Special Revenue Funds are comprised of seven funds totaling $33 million, and a new Special Revenue fund was created this year to isolate the Parks & Recreation Department for easy tracking of all expenditures Special City Council Meeting Tuesday, April 11, 2017 Page 3 related to the voter-approved ReCreating Recreation millage. Parks & Recreation expenditures account for $16 million, or 48% of the Special Revenue Funds. Maintenance and repairs to the City’s major and local neighborhood roads total $14 million, or 43% of the Special Revenue Funds. The Community Development Block Grant totals 4%, which has allowed increased funding for roads and Upton House repairs. The three remaining Special Revenue funds include the Public Safety Forfeiture, Local Development Finance Authority and the Corridor Improvement Authority. The second largest, at $53 million, or 27% of the budget, is the Water and Sewer Fund, with three divisions. The Capital Projects Fund, at $9.5 million, includes road construction funded through bonds, as well as repair of city facilities and for replacement equipment and vehicles. Ms. Varney stated the $192.3 million is a 3.4% increase over last year’s budget. She displayed a graph showing the City’s revenue sources, noting that property taxes account for the largest portion, or 61%, of the revenue, and the second largest is from the State of Michigan, including revenue-sharing and property tax reimbursement. The third-highest revenue is from charges for services, at approximately 12%, which includes the new EMS transport revenue. She reviewed the other smaller revenue sources. She displayed a graph depicting how the funds are spent, and approximately 68% funds Police, Fire and Public Works, while all the other departments are funded through the remaining 32%. Ms. Varney stated that the proposed budget increases General Fund Reserves for the fourth year in a row, projected to be at about 18% of expenditure levels. She stated that, even with the new ReCreating Recreation millage, the City’s tax rate Special City Council Meeting Tuesday, April 11, 2017 Page 4 is lower than other Macomb County cities, and property tax revenues are the lowest of similar-sized cities across the state. Ms. Varney showed graphs highlighting the following: Funding of post-retirement liabilities; Assets in the Retiree Medical Fund; Government Debt per capita, which shows Sterling Heights to be below the debt levels of most communities and well below the legal debt limit; Increased Investment in Major Road Maintenance and Construction; and Increased Investment in Neighborhood Roads. Ms. Varney provided an overview of the proposed budget for the City Administration Department and pointed out there are 2 divisions with 44 full-time employees and 7 part-time employees. The Administrative Services include Human Resources, City Clerk and Information Technology, and the Finance and Budget Offices include Assessing, Financial Services, Purchasing and Treasury. She reviewed the funding level summary in detail. Ms. Varney provided an overview of the proposed budget for the Fire Department, which includes 103 full-time employees and 1 part-time employee in 3 divisions, the largest of which is Fire Extinguishment with 90 firefighters, including the 15 new firefighters for EMS transport, followed by 8 employees in Administration and Training, and 5 employees in Fire Prevention. She reviewed the funding level summary in detail. Ms. Varney concluded her presentation this evening with an overview of the proposed budget for City Development, which includes 29 full-time employees and 12 part-time employees in 5 divisions, including Building & Facilities Special City Council Meeting Tuesday, April 11, 2017 Page 5 Maintenance, Economic Development, Engineering, Neighborhood Services and Planning. She reviewed the funding level summary in detail. Mr. Brent Bashaw, City Engineer, provided an overview of the significant road improvements planned in the proposed budget, along with a review of the progress they have been making with the overall condition of roads in the City. He credited the Safe Streets millage, approved in Fall 2013 and which generates approximately $3.5 million annually, for a lot of the progress made on the local roads. This amount, combined with other local road funding, allowed for significant improvements to local roads within the last three years. He reviewed the 2014-2016 Local Road Improvements in detail, explaining that road projects can involve four programs: concrete reconstruction, sectional concrete replacement, asphalt resurfacing or joint sealing. He stated that 167 local roads, totaling 22.8 miles, have received treatment within the four programs, and a map was shown indicating the streets that have received treatment. He highlighted a couple of areas that have received these improvements, and he reviewed a positive change in the local road ratings over the last three years. He showed a list of 22 roads budgeted for local road concrete reconstruction in 2017, totaling 2.95 miles, and indicated there will be sectional concrete replacement on another 20 to 30 additional roads. He reviewed the progress made on the major roads over the last three years, and noted a few of those have received state awards. Mr. Bashaw presented a map highlighting the major roads scheduled for improvement during the 2017/18 construction season, and briefly reviewed each project, including the following: Dequindre from 18 Mile towards Beaumont Special City Council Meeting Tuesday, April 11, 2017 Page 6 Hospital; Southbound Mound Road between M-59 and 18 Mile Road; Canal Road, between Schoenherr and Van Dyke; Clinton River Road, east of Schoenherr; the Metro Parkway service drive, near the railroad, and approaches from Metro Parkway to Schoenherr, scheduled for 2018; Schoenherr Road, between 15 Mile and north of Metro Parkway; 15 Mile, from Ryan to Mound; and the M-59 Reconstruction Project, which is the largest project and underway, and will provide new pavement, sidewalk improvement, mid-block crosswalks, and many aesthetic features to “The Golden Corridor”, including decorative crosswalks, state-of-the-art mast arm signalization and enhanced median landscaping. He stated the Bridge Maintenance Program will be covered by a federal grant and will include the Riverland Bridge over the Clinton River, and the 15 Mile Road Bridge and the Maple Lane Bridge, both over the Red Run Drain. He reviewed the road projects costs in detail, with over $12 million spent in 2014, over $48 million spent in 2015, over $25 million spent in 2016 and nearly $57 million anticipated for 2017 for a total of over $144 million in road investment over the four-year period. Mr. Vanderpool stated the City is currently working with the City of Warren, the County, the State and federal partners to secure funding for a complete reconstruction of Mound from I-696 to M-59 at a cost of over $200 million, and anyone interested in the project can visit the website www.innovatemound.org. to learn about the future of Mound Road. Special City Council Meeting Tuesday, April 11, 2017 Page 7 Mr. Vanderpool stated one way to fill the void of 200 fewer full-time employees is through better technology, which results in more efficiency and increased productivity. Ms. Melanie Ryska, Deputy City Clerk, provided an overview of some of the upcoming projects for the 2017/18 fiscal year, including the introduction of a records management system, with full implementation of a full city-wide records management system taking five to seven years to fully implement. She explained that Phase One, scheduled for 2017/18, will focus on Council agenda packets. Future phases will include document management and retention solutions. Ms. Ryska reviewed another project scheduled for 2017/18, which is the implementation of a Business Licensing program with software to help administration properly serve and manage the City’s business community on behalf of residents and visitors to the City, while making it much easier for businesses to apply for permits, pay on line, and print their approvals as received by email. She noted that the Police and Fire Department would also have access to this database in the event of an emergency, and the public would have limited access to a categorical listing of all businesses in the City, which provides free advertising for the businesses. In addition, integration with GIS will enable the City to provide notification to the businesses, through email, of road closures, emergency events and other situations that may affect their business. Ms. Ryska explained the third project planned for the Clerk’s Office will be the implementation of new election equipment, and the State of Michigan has $40 million in HAVA grant money to help communities purchase the new equipment. Special City Council Meeting Tuesday, April 11, 2017 Page 8 The type of equipment is decided upon by the County Clerk, and negotiations are currently underway to make sure the equipment is easy to use and at the best price. Fire Chief Chris Martin presented an overview of the Fire Department Budget for 2017/18, and he provided an update of the current budget year and some of their accomplishments, including significant improvements to their fleet, buildings, technology and other areas in the department. He provided photos of the new equipment and building improvements through a PowerPoint presentation and explained their benefits to the community. He also outlined a fitness program implemented for the firefighters and a new Home Inspection Program. The Survivor Coin Program was developed and implemented, designed to bring the survivor of a cardiac arrest together with those who took part in saving his/her life, with the coin for each to serve as a memento of the occasion and a remembrance of the bond created. He emphasized ongoing training is an important part of their department, in areas including extrication, fire, hazmat/tech rescue and EMS, and informed that the conversion to the Knox Box for businesses is almost complete. Capital improvements for the upcoming budget include replacement of the roof for Fire Station #1, a doorwall replacement for Fire Station #5, as well as some specific equipment upgrades, which were explained by Chief Martin. He outlined some proposed changes to the Fire Ordinance that will ensure Fire Code Compliance. He also outlined a Safe Sleep Program that will be developed and implemented. He noted they will be converting a co-op position to a part-time position, and will be focusing on Special City Council Meeting Tuesday, April 11, 2017 Page 9 procedures and support to address firefighter stress. Chief Martin concluded by providing an update on the Advanced Life Support (ALS) Transport, which has been approved and will be implemented this year. Mr. Luke Bonner, Economic Development Advisor, reviewed past, present and potentially future projects for the Corridor Improvement Authority (CIA) District, located in the north and central portion of Sterling Heights and includes properties bordering Van Dyke Road, between 18-1/2 Mile Road to the City limit, and along Utica Road, from Van Dyke Road to Triangle Road. He reviewed the goals of the CIA and amenities planned, built on the premise of tax increment financing. With decreased property values the first eight years of the Authority, there was not a lot of growth; however, a development plan and tax increment finance plan were prepared, along with streetscape design guidelines, potential façade improvements with selected styles and material specifications, access management improvements, property acquisition, flood plain and wetland mitigation, park space improvements, general infrastructure improvements, and a business recruitment and retention program. He outlined, through a PowerPoint presentation, some of the exciting current and proposed developments in the CIA District. Mr. Bonner also outlined some other improvements, including the City’s acquisition of the closed gas station at Utica and Van Dyke Roads, which was turned into a pocket park, and a canoe livery along the eastern border of the Authority adjacent to the Clinton River. He concluded by listing the Board members and stated they are all enthused about the progress of the CIA. Special City Council Meeting Tuesday, April 11, 2017 Page 10 Mr. Vanderpool stated this concludes the presentations for this evening, and they are ready to take questions from the Council and the audience, although the Appropriations Ordinance needs to be introduced prior to comments and questions. He thanked all the directors who presented this evening for their hard work, and extended recognition and thanks to all the managers in the audience this evening. ORDINANCE INTRODUCTION 2. To introduce the Appropriations Ordinance for the 2017/2018 fiscal year. Mayor Taylor invited public comments on this item or on any of the presentations made this evening. Mr. Charles Jefferson – Proposed Canal Road improvements and whether they can be postponed until M-59 project is completed. Moved by Ziarko, seconded by Schmidt, RESOLVED, to introduce the Appropriations Ordinance for the 2017/18 fiscal year. Mayor Pro-Tem Ziarko complimented and thanked everyone for their preparation of the budget. She stated her questions were answered when she met one-on-one with the City Manager and the Finance Director. She questioned Mr. Bashaw’s earlier comment about one road improvement delay due to the sewer break on 15 Mile Road, and she asked whether that was Schoenherr Road. Mr. Bashaw replied that, along with the plans to improve Schoenherr Road from 15 Mile to Metro Parkway and even further north, they also included funds to repair Metro Parkway a sizeable distance east and west at the Schoenherr intersection. He advised that the Schoenherr Road improvements will be going Special City Council Meeting Tuesday, April 11, 2017 Page 11 forward this year as scheduled, but the plan is to keep Metro Parkway open this construction season in light of the 15 Mile Road closure. He explained the pavement at the 15 Mile Road sinkhole is supposed to be completed this fall and open again in spring, so at that point they will start the repairs on Metro Parkway. Mayor Pro-Tem Ziarko stated Schoenherr Road really needs the improvements so she is glad that project is not being delayed. She commended the Fire Chief and his department on the Safe Sleep Initiative and hoped it will be well-publicized. She is happy with what she has heard in tonight’s presentations. Councilwoman Schmidt inquired, regarding road repairs and replacements, how determination is made whether to replace a residential street with concrete or asphalt. Mr. Bashaw explained the condition of the current road is examined. The method for putting in an asphalt surface involves the current road being milled down 3 inches. In most cases, there is only a 6-inch pavement, so milling it down 3 inches and putting construction equipment on it can often break up the road and result in a more expensive solution than using asphalt. He stated the half-mile collector roads are constructed with 8-inch-thick pavement so they can be milled and the supporting concrete will still be in place to handle the weight of the mill and construction equipment. Councilwoman Schmidt had received questions from residents, and explained that when Amsterdam Street was redone, some residents were upset that asphalt was replacing concrete. She wanted the residents to understand there is a system to determine one method over the other. She requested that Mr. Bashaw provide Special City Council Meeting Tuesday, April 11, 2017 Page 12 Council members a list of the residential streets that are in the budget for this year. Mr. Bashaw assured he would provide that list. Councilwoman Schmidt has had residents approach her about Van Dyke, and she inquired as to whether anyone from the City has talked with anyone from the City of Utica and the State of Michigan about the bridge. Mr. Vanderpool stated the worst section is Canal, but it will be done in the next construction season once M-59 is completed. He does not know whether the City of Utica and the County have that section of Van Dyke scheduled for improvements next year. He anticipated it will be soon, and stated he can look into it. Councilwoman Schmidt stated she is pleased to see the City can put some money in the bank, and she appreciated everyone’s hard work on this budget. She also thanked the residents for approving millages that allow the City to make these nice improvements for them. Councilwoman Koski questioned the life expectancy of the roads that are now being redone. She further inquired as to whether there is a list on the website where residents can look up their street to see when it is scheduled for repair/replacement. Mr. Bashaw replied that a typical concrete road is designed to last 20 to 25 years, with the life of local roads extended slightly longer because there is not as much heavy truck traffic. He explained that the roads are rated annually, and not all roads deteriorate at the same rate, so they look at road conditions and ratings, and Special City Council Meeting Tuesday, April 11, 2017 Page 13 put together their program based on that. They also look at the amount of traffic and how they want to build into the subdivision, but they do not put the programs together any sooner than the fall before the planned improvements for the following year. He suggested anyone who feels their road should be done can contact the Department of Engineering, and they will make sure they look at that road each year as they do every year. Councilwoman Koski noted the City Hall front steps need some repairs, especially on the one side. Mr. Michael Viazanko, Building Official, replied that as the weather is changing, outdoor repair work is beginning. Councilwoman Koski felt it may need some brick replacement to the side. Mr. Viazanko explained they did some tuck pointing last summer, so he assured they will take care of it soon. Councilman Shannon met with Ms. Varney earlier today and stated he had a lot of his questions answered, adding he was impressed with her knowledge. He questioned the mention of a pond in front of the Police Department, and he inquired as to how it will look once they put some money into renovating it. Mr. Viazanko stated there is money allocated in the next budget year to do some repairs on the pond, and the quotes they receive during the RFP process will dictate what they can do. He acknowledged that they must fix some pumps and repair a leak at the very minimum. He stated they can provide some renderings once they have an idea of what will be possible with the money budgeted. Special City Council Meeting Tuesday, April 11, 2017 Page 14 Councilman Shannon stated he would be pleased to see upgrades because he has never liked it the way it looks. He asked about plans that were submitted three or four years ago for a Speedway Gas Station that was going to be located on Van Dyke, and whether they still intend to go forward with that development. Mr. Vanderpool replied that there were plans for a Speedway Gas Station on the corner, but those plans have been put on hold. He does not have a new date now, but he will try to get more information on it. Councilman Shannon felt that would be a good improvement and questioned whether there is anything the City can do to help them move forward. Councilwoman Sierawski thanked the staff members and department heads who have worked on this budget and came tonight to give the presentations. She added she is impressed and feels the City is doing well. Mayor Taylor stated the budget presentations were very informative, and he thanked all involved. He noted the budget is allowing for expansion of City services and more investment in the community. He was pleased to see the investments into equipment, staff, roads and infrastructure, and the new ALS Transport through the Fire Department. He stated that after “treading water” for so long, it is good to be able to move forward. Mayor Pro-Tem Ziarko questioned if they would like to make an amendment to the budget, even if they have not yet heard that department’s presentation, whether they should do so tonight or wait until after that department’s presentation. Ms. Varney replied it should be done tonight so they can be prepared. Special City Council Meeting Tuesday, April 11, 2017 Page 15 Mayor Pro-Tem Ziarko inquired as to whether it should be done before they vote on introducing the Appropriations Ordinance. Mr. Kaszubski replied that someone may want to propose an amendment that the administration would bring back to the next meeting. If everyone is agreeable to that amendment request, the it can be brought back in the form of a motion. If there is not a consensus, then a motion tonight would be made to give direction to City Administration as to whether to bring it back. Yes: Ziarko, Schmidt, Koski, Shannon, Sierawski, Taylor. No: None. Absent: Lusk. The motion carried. COMMUNICATIONS FROM CITIZENS There were no comments from citizens. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mayor Pro-Tem Ziarko stated she would like to adjust the budget by $5,000 to start another Civilian Police Academy, with at least one session held between July and December 2017. She added that if it is successful, possibly they can do amendments through the Appropriation Budget in December and add another $5,000 for another session. She explained she is not proposing the Citizen Fire Academy this year because with the ALS Transport, they will be busy enough. None of the Council members offered any objections. Councilman Shannon stated he discussed with Mr. Vanderpool and Ms. Varney earlier today about the possible amendment for the Upton House. He requested Special City Council Meeting Tuesday, April 11, 2017 Page 16 an amendment to the budget to add another $4,000 annually for the next five years for the Upton House. None of the Council members offered any objections. ADJOURN Moved by Ziarko, seconded by Schmidt, to adjourn the meeting. Yes: All. The motion carried. The meeting was adjourned at 8:15 p.m. MELANIE RYSKA, Deputy City Clerk