City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL WEDNESDAY, NOVEMBER 6, 2019 IN CITY HALL 1. Mayor Pro-Tem Sierawski called the meeting to order at 7:00 p.m. 2. Mayor Pro-Tem Sierawski led the Pledge of Allegiance to the Flag and Melanie D. Ryska, City Clerk, gave the Invocation. 3. Council Members present at roll call: Deanna Koski, Michael V. Radtke Jr., Maria G. Schmidt, Liz Sierawski, Henry Yanez, Barbara A. Ziarko. Absent: Mayor Michael C. Taylor Also Present: Mark Vanderpool, City Manager; Marc D. Kaszubski, City Attorney; Melanie D. Ryska, City Clerk; Carol Sobosky, Recording Secretary. 4. APPROVAL OF AGENDA Moved by Koski, seconded by Ziarko, RESOLVED, to approve the agenda as amended, moving Consent Agenda Item 10-L to Consideration Item 11-A. Yes: Koski, Radtke, Schmidt, Sierawski, Yanez, Zarko. No: None. Absent: Taylor. The motion carried. 5. REPORT FROM CITY MANAGER Mr. Vanderpool reminded everyone that, in observance of Veteran’s Day, the City offices will be closed for business on Monday, November 11, 2019, including City Hall, the Public Library, Parks and Recreation Center, Senior Center, 41A District Court and the Nature Center. Normal hours of operation Regular City Council Meeting Wednesday, November 6, 2019 Page 2 will resume on Tuesday, November 12, 2019, and this closure will not affect the refuse schedule. He noted the annual Veteran’s Day ceremony will be held on that Monday at 11 a.m. at the Sterling Heights Senior Center, with the ceremony to be co-sponsored by local veteran’s groups and assistance of the Sterling Heights Area Community Foundation. He added the general public is welcome to attend, and anyone with questions can call 446-CITY. The Sterling Heights Community Foundation will present their 7th Annual Puttin’ on the Ritz Gala honoring the Honorable David F. Viviano, Justice of the Michigan Supreme Court, as he receives the fifth annual Richard J. Notte Civic Service Leadership Award. The event will take place on Friday, November 22, 2019 at Villa Penna from 6 p.m. to 11 p.m. The event is open to the public, and more information can be obtained on the Community Foundation webpage or main page or call 446-CITY. Mr. Vanderpool showed a brief public service announcement pertaining to leaves, noting that city code requires all leaves be properly mulched or removed from yards and stored in approved bags or containers, with the last pickup of the season being the regularly-scheduled yard waste collection day during the first week in December. Mr. Vanderpool thanked residents for complying with the ordinance, adding that they have great compliance across the City. Mr. Vanderpool concluded his report by requesting that City Council convene a Closed Session, pursuant to Section 8(e) of the Open Meetings Act to consult Regular City Council Meeting Wednesday, November 6, 2019 Page 3 with the City Attorney regarding legal strategy in connection with the City’s pending litigation in Macomb County Circuit Court Case No. 2017-000052-AS. 6. PRESENTATION A. Mayor Pro-Tem Sierawski stated this is a swearing-in ceremony for new Sterling Heights Firefighters, and she invited Fire Chief Chris Martin to swear in the new officers. Fire Chief Chris Martin congratulated all of the City Council members on their reelection, and he thanked the residents for their resounding approval of the Safe Streets renewal. Chief Martin outlined the education, training and experience of each of the new firefighter/paramedics and performed the swearing-in of the following three new firefighters/paramedics: Bradley Sommers, David Buholtz and Mark Antoun. The City Council members congratulated and welcomed them to the City of Sterling Heights. The newly sworn-in firefighter/paramedics made comments, indicating they are happy to be here and look forward to long careers with the City, and they thanked the City for this opportunity and their family for their support. Mayor Pro-Tem Sierawski congratulated the new firefighters/paramedics and welcomed them to a great city and wonderful department. She looked forward to having them on board to help the City. 7. PUBLIC HEARINGS A. Mayor Pro-Tem Sierawski stated this is a public hearing to consider the application by KUKA Systems North America, LLC, d/b/a/ Mor-Tech Regular City Council Meeting Wednesday, November 6, 2019 Page 4 Manufacturing, Inc., for the transfer of Industrial Facilities Tax Exemption Certificate (IFEC) No. 2017-115, currently held by Mor-Tech Manufacturing, Inc. at 37641 Mound Road. She invited Senior Economic Development Advisor Luke Bonner to make a presentation. Senior Economic Development Advisor Luke Bonner explained that Mor-Tech Manufacturing, Inc., a home-grown company specializing in automated guided carts in autonomous vehicles on a small scale, was originally approved for a five-year tax abatement on July 5, 2017. Since that time, they were acquired by KUKA Systems North America, LLC, which is also headquartered in Sterling Heights. As part of that acquisition process, the existing tax abatement approved for Mor-Tech is now being requested to be transferred over to the new entity that owns Mor-Tech, which is KUKA-Mor-Tech. He explained there has been a considerable amount of job growth as a result. He invited a representative from KUKA-Mor-Tech to provide an update on what is occurring with the company and how the new facility is going. Ms. Maria Callaghan, a member of the management team at KUKA Systems America LLC, thanked the City for this opportunity to present their application for the transfer of Mor-Tech’s Industrial Facilities Tax Exemption Certificate (IFEC). She provided a brief history of the IFEC that was approved by City Council in 2017 for new construction planned at Mor-Tech, located on Mound Road, and explained they are here tonight to request a transfer of the resulting certificate from Mor-Tech to KUKA. She explained that she is here tonight with Regular City Council Meeting Wednesday, November 6, 2019 Page 5 the Director of KUKA Automotive Division, who can answer operational questions; their Senior Tax Analyst, who can answer questions regarding the process for milestone reporting; and their CPA, who has done a lot of preparation of the materials for this evening. She thanked the City’s administrative staff for their work in getting this application processed. Ms. Callaghan explained how KUKA acquired Mor-Tech, and how they were confident the consolidation would result in productivity gains and serve as a springboard for growth, ultimately adding about five or ten jobs to the area. She stressed that KUKA has a large and continuing commitment to the City of Sterling Heights, and that has increased by their assumption of Mor-Tech’s operations. Mayor Pro-Tem Sierawski opened the public hearing and invited public comments. • Mr. Giulio Russo – commended Mor-Tech for their clean facility and involvement in robotics; would like to see them hire from within Sterling Heights. • Mr. Jerry Sieja – in favor of transfer; questioned whether an expansion is being planned. Mayor Pro-Tem Sierawski closed the public hearing. Moved by Schmidt, seconded by Ziarko, RESOLVED, to adopt the resolution approving the application by KUKA Systems North America, LLC to transfer Industrial Facilities Tax Exemption Certificate No. 2017-115 from Mor-Tech Manufacturing, Inc. at 37641 Mound Road and authorize the Mayor and City Regular City Council Meeting Wednesday, November 6, 2019 Page 6 Clerk to sign, as applicable, all documents required in conjunction with this approval. Councilwoman Schmidt stated this is an unusual situation and she cannot recall if they have transferred an IFEC from one company to another. She wanted to assure that this is allowed and requested Mr. Bonner explain it. Mr. Bonner replied this comes up occasionally and they may have had one other transfer this year or last year, but Public Act 198, which is the legislation under which the Industrial Facility Exemption Certificates are administered, allows for abatements to be transferred from one company to the next if they qualify. He added that this company qualifies for such transfer. Councilwoman Schmidt questioned whether Ms. Callaghan would like to make any comments on the questions raised this evening by the residents. Ms. Maria Callaghan stated she has only been in her position for six months, so she is not sure about the history, but she noted a question raised tonight about an expansion. She indicated this is the first step in that expansion. Mr. Zach Kulish, Senior Tax Analyst for KUKA, replied that when they first moved into the building, they had about forty employees and they now have fifty-five employees. He replied to the question about hiring people from Sterling Heights, he assured they are definitely open to collecting resumes from people who meet the requirements to work at their company, and they would be excited to hire people from Sterling Heights. As far as expansion, he stated they have combined three facilities in Sterling Heights into one facility. Regular City Council Meeting Wednesday, November 6, 2019 Page 7 He noted their building is fully utilized now, so if they outgrow their current building, he anticipated they would have to look for a larger facility in Sterling Heights. He felt the current building will meet their needs for the next five to ten years. Councilwoman Schmidt wished them well and thanked them for expanding in this community. She also expressed appreciation for their company being a good corporate neighbor. Councilwoman Ziarko questioned whether they are retaining all of the employees from Mor-Tech as well as hiring new employees, or whether there will be new employees brought in to replace the current Mor-Tech employees. Mr. Kulish replied that after KUKA acquired Mor-Tech, they retained all forty of the Mor-Tech employees and have since added fifteen additional employees in the last year. Councilwoman Ziarko expressed appreciation for KUKA-Mor-Tech expanding in the City. Mayor Pro-Tem Sierawski stated she drives by that building every day, and she commended them for doing a wonderful job, adding it is a beautiful building. She thanked them for continuing to operate their business in the City of Sterling Heights. Yes: Koski, Radtke, Schmidt, Sierawski, Yanez, Ziarko. No: None. Absent: Taylor. The motion carried. 8. ORDINANCE INTRODUCTION Regular City Council Meeting Wednesday, November 6, 2019 Page 8 A. Mayor Pro-Tem Sierawski stated this is to consider introduction of a Tax Exemption Ordinance providing for payment of service charges in lieu of real property taxes for the Autumn Ridge residential community located at 36498 Dequindre Road and 36300 Dequindre Road. She invited Mr. Vanderpool to give a presentation. Mr. Vanderpool explained this agenda item pertains to renewing a low- to moderate-housing incentive for a long-standing development in the City, providing an important housing option for residents. Autumn Ridge is a 251- unit low- to moderate-income apartment complex first constructed in 1982 and extensively renovated between 2016 and 2019. Approximately $4 million in capital improvements were completed in 2018, with an additional investment of $500,000 in 2019. The two components of the development, one being a six-story high-rise with 151 units servicing residents 62 years of age and older, and a 100-unit townhome village at the rear of the site serving residents 18 years of age and older. Through the aid of a PowerPoint presentation, a picture of the development was shown, and Mr. Vanderpool explained it is a very clean, well-maintained development, also containing community rooms, fitness rooms and more. He showed a picture of one of the units, and provided a history of the development, noting that the tower was originally financed by a mortgage loan through the Michigan State Housing Development Authority (MSHDA), and the City adopted a tax exempt ordinance under which the City granted tax exempt status to the tower development only. The original owner Regular City Council Meeting Wednesday, November 6, 2019 Page 9 agreed to make payments instead of taxes, referred to as a “PILOT”. The MSHDA loan was paid off in 2010, and the original PILOT program ended. Cambridge purchased the Autumn Ridge community in 2017 and has undertaken substantial rehabilitative improvements to the housing units, and he outlined those improvements. Cambridge is now refinancing its investment with Autumn Ridge through a federally aided mortgage loan, supported by a project-based Section 8 Housing Assistance Payments Contract with the Department of Housing and Urban Development (HUD). This qualifies Cambridge for a renewed MSHDA PILOT program for the Autumn Ridge tower and town houses. The proposed City of Sterling Heights Tax Exemption would exempt both parcels of the Autumn Ridge development from the payment of any annual ad valorem taxes but requires payment of annual PILOT fees equal to 4% of the Annual Contract Rent paid by its residents. The PILOT fee will then be distributed to all taxing bodies on a pro rata share, and in addition to this, the City will receive an annual municipal services fee to fund the cost associated with providing police, fire and EMS services to the development. Under the proposed Municipal Services Agreement, Cambridge will pay an annual municipal services fee of $75,000 per year for these services, which also include water and sewer charges. The annual municipal services fee will increase by 2% annually or the rate of inflation, whichever is greater. Mr. Vanderpool stated that if the City Council would consider approval of the municipal services agreement, at the time of the adoption of the Ordinance, Regular City Council Meeting Wednesday, November 6, 2019 Page 10 which would be at the November 19, 2019 regular meeting, this is the introduction of the Ordinance. The PILOT fee of 4% will fully fund the City's property taxes exempt under the ordinance, so the City of Sterling Heights is made whole, financially speaking, with this incentive. Affordably priced quality housing helps to maintain vibrancy in the community and provides alternative housing choices that work to retaining residents in the City. Autumn Ridge offers quality housing options to two vulnerable populations within the City: seniors and low- to moderate-income households, adding that a PILOT fills a critical need in the housing market while allowing the City to continue to receive revenue for critical public safety services to the residents of the community. The City has successfully used PILOTs in the past to address the needs of low- to moderate-income residents for quality housing within the City. Casey Ryan and Stephen Rice, both representatives from Autumn Ridge, are present tonight to answer questions or provide additional information. Mr. Vanderpool respectfully requested that Mayor Pro-Tem Sierawski and the City Council approve the introduction of the Ordinance before them this evening pertaining to the subject PILOT. Mayor Pro-Tem opened the floor for public comments. • Mr. Jerry Sieja – pleased they are improving the site and owners are reinvesting. Moved by Ziarko, seconded by Schmidt, RESOLVED, to introduce the City of Sterling Heights Tax Exemption Ordinance providing for payment of service Regular City Council Meeting Wednesday, November 6, 2019 Page 11 charges in lieu of real property taxes for the Autumn Ridge residential community located at 36498 Dequindre Road and 36300 Dequindre Road. Councilwoman Ziarko stated she is in favor of this and commended the owners for improving the site. She felt this is a good compromise for the City as well as for the establishment. She invited Mr. Rice to speak and say hi to the residents he served for fourteen years while he was on City Council. Mr. Stephen Rice stated it is good to see everyone, and he stressed that it is critical for affordable housing to be provided in their community. He indicated that Sterling Heights has prided itself over many years for providing housing for all people. He indicated he is the manager of the property and was asked to come back and run the property. He commended the Council for the positive improvements he has seen in the community. Councilwoman Ziarko thanked Mr. Rice and welcomed him back to the City. Councilman Yanez questioned the benefit for anyone to do this, and under this program, he questioned whether they have to pay any millages tied to the property taxes. Mr. Vanderpool replied the benefit to doing this is keeping and preserving low- income housing at this site and providing that option for seniors. If this was not offered, those groups may look in other communities that offer these services. In terms of taxes, he explained the City of Sterling Heights will be completely made whole and will lose nothing in this venture. They will recover every incentive they would have otherwise lost but for the municipal services Regular City Council Meeting Wednesday, November 6, 2019 Page 12 agreement. Other taxing jurisdictions do not recover their portion of the incentive cost, but the State Education Trust Fund makes schools whole by providing funding for the school districts on a per capita basis. If a school district, which in this case is Warren Consolidated Schools, has any special millages or debt, they would not be reimbursed under this incentive program. He added that is how the PILOT program works, and it would also involve other affected entities, such as the DIA, Veterans, the Detroit Zoo, SMART, HCMA, the County, MISD, MCC and others. He added that in the past, with the PILOT programs, these jurisdictions have not objected to this incentive because they understand the importance of providing this level of housing. They indirectly benefit from this type of housing incentive because they have individuals that might not be in their school district. Councilman Yanez questioned how often the Autumn Ridge residents use SMART bus services. Mr. Rice replied they hired a new staff person at the property this year for resident coordination programs. He indicated their numbers through the SMART program have gone up significantly and they are happy because it is important for them to stay independent by being able to go to the store, shopping, and taking care of themselves. Councilman Yanez questioned whether the buses are donated through SMART since they are not paying the property tax or millage rate to SMART. Regular City Council Meeting Wednesday, November 6, 2019 Page 13 Mr. Rice replied the buses are through the SMART program, but he replied to further inquiry that the people use their tokens. Councilwoman Koski requested an explanation on what would happen if this PILOT program goes into default. Mr. Vanderpool replied there is a provision in the agreement that the “service fee,” or “PILOT fee” would go up to 10%, which is the ad valorum tax being restored. He replied to inquiry that everything is covered in the agreement and the City Attorney has carefully reviewed this agreement, and administration, staff and Finance Director Jennifer Varney have reviewed it very carefully, making sure there are protections for the City and other jurisdictions in the agreement. Councilwoman Koski stated she and Mr. Rice go back thirty-plus years, and he has been in property management as long as she has known him. She was confident Mr. Rice will do a fantastic job. Councilman Radtke commented that this is a wonderful project because the City needs more affordable housing. He would like to see more PILOTS like this to assure they have housing that suits all people in Sterling Heights. Mayor Pro-Tem Sierawski thanked the representatives for being present this evening, and noted that as a home-care director, she is aware of the need for affordable public housing, especially for seniors and those who have limited abilities to drive themselves. She is happy the facility is continuing to improve and is providing good services to their residents. Regular City Council Meeting Wednesday, November 6, 2019 Page 14 Yes: Koski, Radtke, Schmidt, Sierawski, Yanez, Ziarko. No: None. Absent: Taylor. The motion carried. 9. ORDINANCE ADOPTION A. Mayor Pro-Tem Sierawski stated this is to consider adoption of ordinances amending Zoning Ordinance No. 278 to add Article 14A, creating the Van Dyke Mixed Use District, and Article 20A, creating the Mound Road Innovation Support District. She invited City Planner Chris McLeod to give a presentation. Mr. Chris McLeod explained this was introduced at their last meeting, and there were no direct questions raised at that time that needed to be answered. He recalled some discussion and what this ordinance would do, and he offered to go back and provide a brief overview or update if so desired. Mayor Pro-Tem Sierawski opened the floor for comments from the audience, but no one from the audience spoke. Moved by Radtke, seconded by Ziarko, RESOLVED, to adopt the ordinance amending Zoning Ordinance No. 278 to add Article 14A, creating the Van Dyke Mixed Use District. Yes: Koski, Radtke, Schmidt, Sierawski, Yanez, Ziarko. No: None. Absent: Taylor. The motion carried. Moved by Yanez, seconded by Schmidt, RESOLVED, to adopt the ordinance amending Zoning Ordinance No. 278 to add Article 20A, creating the Mound Road Innovation Support District. Regular City Council Meeting Wednesday, November 6, 2019 Page 15 Councilman Yanez felt it is time they start changing the face of Mound Road, and he felt this is a good start. Yes: Koski, Radtke, Schmidt, Sierawski, Yanez, Ziarko. No: None. Absent: Taylor. The motion carried. 10. CONSENT AGENDA Mayor Pro-Tem Sierawski stated this item is consideration of the Consent Agenda, with the exception of Item L. She invited public comments from the audience. • Mr. Jerry Sieja – regarding Item K and whether it is partial cost, because he understood the Sterling Heights Relief Drain is run by the County. • Mr. Charles Jefferson – questioned why Item 10-L was moved to a Consideration Item. Moved by Ziarko, seconded by Koski, RESOLVED, to approve the Consent Agenda as amended, moving Consent Agenda Item 10-L to Consideration Item 11-A: A. To approve the minutes of the Regular Meeting of October 15, 2019. B. To approve payment of the bills as presented: General Fund - $1,111,643.14, Water & Sewer Fund - $1,692,162.23, Other Funds - $3,956,722.49, Total Checks - $6,760,527.86. C. RESOLVED, to approve the purchase of original equipment manufacturer parts for Fire Department ambulances from Rolland Specialty Vehicles and Products, 5265 Tractor Road, Suite F, Toledo OH 43612 for a three-year period through November 6, 2022. D. RESOLVED, to purchase athletic surface Sport Courts, basketball and tennis court accessories, and installation services from Superior Sports Unlimited, LLC, 1250 N. Opdyke Road, Auburn Hills, MI 48326, at unit prices available through a National Joint Powers Alliance (NJPA) cooperative RFP, Contract #082114, in the cumulative amount of $61,801. E. RESOLVED, to purchase janitorial and restroom supplies from Nichols Paper & Supply Co., d/b/a Nichols, Inc., 1391Judson Road, Norton Shores, MI 49456, at pricing available through the OMNIA Partners / Regular City Council Meeting Wednesday, November 6, 2019 Page 16 National IPA Cooperative Request for Proposals, contract #151148, through August 1, 2020. F. RESOLVED, to award the bid for snow removal services to Casar Management, LLC, PO Box 661, St. Clair Shores, MI 48080, through May 1, 2020, based on unit prices bid and authorize the City Manager to extend the bid term one (1) additional year under the same terms and conditions. G. RESOLVED, to award the bid for portable light tower to ALTA Construction Equipment Company, 56195 Pontiac Trail, New Hudson, MI 48165, at a total cost of $10,225. H. RESOLVED, to award the bid for holiday lighting installation services to Landscape Services, Inc., 22932 Rasch Drive, Clinton Township, MI 48035, at unit pricing bid for a two-year period. I. RESOLVED, to approve the vehicle lease agreement between Suburban Mobility Authority for Regional Transportation (SMART) and the City of Sterling Heights for a Champion bus and Ford Transit van for use in the Parks and Recreation transportation program and authorize the City Manager to execute the agreement on behalf of the City. J. RESOLVED, to approve final payment to Mando Construction, Inc., 75 Lafayette Street, Suite 100, Mt. Clemens, MI 48043, in the amount of $108,432.65, plus interest on retainage, for Neighborhood Parks Improvements – Phase 5 – Building Improvements. K. RESOLVED, to waive the competitive bidding requirement in accordance with City Code §2-217(A)(9)(b) and approve a contract between the city of Sterling Heights and T.R. Pieprzak Company, Inc. for Sterling Relief Drain Right Of Way Improvements, City Project #19-335, in the amount of $114,192 and authorize the Mayor and City Clerk to sign all documentation required in conjunction with this approval. L. Moved to Consideration Item 11-A. M. RESOLVED, to set a public hearing on Tuesday, December 3, 2019 at 7:00 p.m., regarding the application by Universal Tool Equipment and Controls, Inc., to amend the final cost of the real property investment made pursuant to Industrial Facilities Exemption Certificate No. 2017- 134 at 42409 Van Dyke Avenue. Yes: Koski, Radtke, Schmidt, Sierawski, Yanez, Ziarko. No: None. Absent: Taylor. The motion carried. 11. CONSIDERATION A. Mayor Pro-Tem Sierawski explained this was formerly Consent Agenda Item 10-L and it has been moved to Consideration Item 11-A, which is a request Regular City Council Meeting Wednesday, November 6, 2019 Page 17 to waive the competitive bidding requirement pursuant to City Code §2- 217(A)(9)(1) and accept a proposal by Mando Construction, Inc., to renovate the former DPW Parks & Grounds building at the City’s Clinton River Road facility. She opened the floor for public comments. • Mr. Jerry Sieja – questioned the age of the building, noting it has been there a long time; questioned whether $148,000 will be enough. • Mr. Charles Jefferson – questioned why this was moved to Consideration Item from Consent Agenda. Moved by Ziarko, seconded by Koski, RESOLVED, to waive the competitive bidding requirement pursuant to City Code §2-217(A)(9)(1) and accept a proposal by Mando Construction, Inc. to renovate the former DPW Parks & Grounds building at the City’s Clinton River Road facility at a cost of $148,600 and authorize the City Manager to sign all required documentation. Councilwoman Ziarko stated she is not aware of why this was pulled from the Consent Agenda and she requested an answer. Councilwoman Koski requested that Mr. Vanderpool explain why they are doing this and where the money is coming from. Mr. Vanderpool provided some background on this request. He appreciated City Council pulling the item and probing further. He pointed out it is not often that City Council is asked to waive the competitive bidding requirements, but when they do that, they feel it is the most cost-effective solution and the best approach for the City. The agenda item pertains to the renovation of 4,500 square feet of currently vacant building space at the City’s Clinton River Road Regular City Council Meeting Wednesday, November 6, 2019 Page 18 site, which previously housed the DPW Parks and Grounds Division and served as support space for Universal Ambulance, a previous contractor used by the City. The building is 54 years old, originally constructed in 1965. City Administration arrived at this solution after exhausting many more costly options, and once renovated, the space will be used for storage of election equipment and material, while also providing a secure office space for absentee voter (AV) processing. He added that a portion of the building will be used by the Parks and Recreation Department that will be losing their auxiliary building with the construction of the new DPW facility. He stressed that this renovation option addresses an immediate short-term need, noting that the Clerk’s AV office will be displaced due to the renovation of the City’s campus. He added that during this renovation, departments have to be relocated and in some cases, moved offsite, and that affects the City Clerk’s office, so it is critical their alternative space be available in January to begin processing AV applications and ballots for the March Presidential Primary election. Mr. Vanderpool stated there is no room to relocate the City Clerk’s office in the City campus, so they would be forced to look at a more costly rental. He noted the renovation also addresses a long-term need of separating court storage in operations currently partially conducted at the court building. Election storage and operations are strongly recommended to be separated from the court operations, and election workers should not have access to various areas of the Regular City Council Meeting Wednesday, November 6, 2019 Page 19 court building. Mr. Vanderpool explained the cost to implement this best practice and create this separation and isolation would be cost-prohibitive. Mr. Vanderpool stated the recommendation brought forth this evening has been thoroughly analyzed and is the most cost-effective measure to address the current needs. The negotiated proposal to renovate the 4,500 square feet equates to $32.59 per square foot. He provided some examples of projects that were competitively bid, including the CareHere space on the lower level of City Hall, the renovation of the City campus buildings, the new Community Center, the new DPW facility and the Upton House, and these ranged in price from $102.48 per square foot all the way up to $241.71 square foot, at least three times the amount proposed for the proposal in front of them tonight. A recent bid for a new pole barn equated to $80.73 square feet, and he stated the construction bidding climate is not very favorable right now. Bidding the project will require at least thirty days and likely result in increased pricing. Based on the current bidding climate and recent bids, it is highly unlikely that the bids would be lower than $32.59 per square foot, especially knowing the contractor would not likely extend their pricing because their agreement for the low rate is due to the fact they are already on site with their current renovation of the Upton House. They are ready to go if City Council approves this. A delay of thirty days would push construction completion into February, which would require temporary rental space for the Clerk’s office to begin processing absentee ballot applications in January for the March primary. He Regular City Council Meeting Wednesday, November 6, 2019 Page 20 anticipated it would be hard to find space, and they would possibly have to rent a mobile trailer, which would also be very costly due to having it wired for electricity, get everything set up and connected, in addition to the monthly charge, which would far exceed any minimal savings they could possibly obtain through bidding. He summarized that the proposal, in the amount of $32.59 per square foot, is very competitive and he is confident this is the most cost-effective solution for the City. The project budget included space renovation, and this amount is well within the overall project budget. On behalf of the Purchasing Manager, the Finance Director, Assistant City Manager, City Attorney and himself, he respectfully requested that the Mayor Pro-Tem and City Council approve the action before them. Councilman Radtke noted that he requested to have this pulled from the Consent Agenda because he wanted more information. He expressed concern that it was not bid, especially when spending over $100,000 of the City’s money without a competitive bid. He could not understand why this was not put into their master plan, and he is opposed to it because they do not have a bid and he felt projects involving the expenditure of taxpayer’s money should be bid if at all possible. Councilwoman Koski questioned the approximate cost of going out for bid. She explained she was under the impression that cost is about $600. Mr. Vanderpool replied that the administrative cost would be at least that amount and stated he does not have that exact number, but he confirmed that Regular City Council Meeting Wednesday, November 6, 2019 Page 21 is an added cost which he did not include. He assured that he does not disagree with Councilman Radtke, and agreed that, in almost all cases, projects like this should be competitively bid; however, there is a provision in the Charter that allows City Council to waive that requirement when it is justified. He explained Administration feels it is highly justified in this case, and the data they have of overseeing and bidding projects equating to almost $100 million over the past few years, suggests the negotiated price they have obtained is far more advantageous in this case than going out to bid. He indicated there is a reason that provision is in the Charter, and although it is not used very frequently, they use it only when they have sufficient data to justify it. Councilman Yanez inquired as to the normal time for bidding. Mr. Vanderpool replied in this case, it would be as soon as they could get through the process and back to City Council, which would be at least thirty days. He added that would be the problem because the completion time would be pushed into February or later, forcing the City into the rental situation, which could be $20,000 to $30,000 and would more than likely negate any potential savings even if there were any savings on a formal bidding process. Councilman Radtke questioned why they cannot use the system they are currently using. He questioned whether the state is requiring them to make the change, or whether it is simply a recommended change. Regular City Council Meeting Wednesday, November 6, 2019 Page 22 Mr. Vanderpool explained the entire campus is being remodeled, with the work starting next month, and the Clerk’s office is included in that renovation. There is not space on site to relocate the Clerk’s office beginning January 1. They cannot delay that project, for which there is bidding involved, and delay would prove very costly to get through the absentee ballot season, which starts in January. Ancillary to that need is the issue they have at the court building. After months of analysis, this has proven to be the most cost advantageous option that addresses the unavoidable short-term need and the long-term need, which is a suggested best practice. They do not need to comply with the suggestion, but with this in mind, it makes sense to do it now and they found a cost-effective way to do it. Councilman Radtke questioned whether there is space available at Fillmore Elementary, where they have temporarily relocated some of their facilities. Mr. Vanderpool replied that term is ending and they would have to enter into another lease agreement with them, which also does not address a long-term option but would only be short-term “wasted” money on a rental. Mayor Pro-Tem Sierawski stated she was initially concerned that they were not sending this out for a competitive bid, adding she is very conscious about spending the money. She felt, however, when they have the building and the construction company willing to do this at such a great rate because they are already here, she cannot in good conscience delay this. She felt the quoted Regular City Council Meeting Wednesday, November 6, 2019 Page 23 price is excellent, and every little bit of money they can save is important, so she is in favor of this action. Yes: Ziarko, Koski, Schmidt, Sierawski, Yanez. No: Radtke. Absent: Taylor. The motion carried. 12. COMMUNICATIONS FROM CITIZENS Mayor Pro-Tem Sierawski opened the floor for comments from citizens. • Mr. Norman Bean – questioned the item that was addressed under Consideration items this evening. Mayor Pro-Tem Sierawski clarified that item was already discussed and public comments can only be on items not on the agenda. She assured he can talk with City Council members after the meeting about his concerns. • Mr. Gerald Burak – talked about a minor accident he had at the Meijer’s he had at 16 Mile and Van Dyke. • Mr. Giulio Russo – congratulated the Council members who recently won the election; concerned about speed limit on Merrill and motorists who are travelling that street at 50 miles per hour. • Mr. Charles Jefferson – comments about recent election. • Mr. Jon Matthews – congratulated Mr. Nick Cavalli on his efforts in the election; urged City to advertise the option of absentee ballots for residents before the next election. • Mr. Nick Cavalli – thanked Mr. Matthews and congratulated the Council members for their reelection. • Mr. Jerry Sieja – apologized to Fire Chief for being upset when the side doors to City Hall were locked earlier this evening; congratulated City on Safe Streets renewal; questioned timetable for Merrill Road. 13. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Vanderpool responded to a couple of questions raised this evening, and they will have to get back on others. He addressed the question from Mr. Jefferson regarding the Consent Agenda and why an item was pulled. He reminded that, pursuant to City Council rules, a City Council member can Regular City Council Meeting Wednesday, November 6, 2019 Page 24 request that an item be pulled from the Consent Agenda, and that is what occurred this evening. He assured they will continue to look at Merrill Road and set up speed control reviews over the next few weeks and look at accident history to determine what is appropriate to do. He indicated the side door should not have been locked and he will look into that matter. He addressed the road projects, noting that all of these projects are supposed to be wrapped up by the end of the month, and although it will not take three more weeks to get them all done, with this weather it could go to the end of November. He stated 14 Mile has more work to be done, but Schoenherr is very close to completion. He believed the Dobry and Hall Road project was Carmax and that was approved by City Council, and for one reason or another, the applicant decided to not pursue it any further. He indicated it could still be in a holding pattern but he has not heard. Mr. Vanderpool noted on social media, there have been a couple of reports of high water bills, and he did not believe that is due to rate increases, adding they had one of their lowest rate increases this past year. He explained the couple of anomalies reported on social media were looked at closely, and in each case, they were due to unusual amounts of water usage. In those cases, it is typically automated sprinklers running when not needed. The City reported back to those individuals and gave them a thorough analysis of what happened. In another case, there was a pool leak that was not detected above ground, but he stated that was a highly unusual situation that Regular City Council Meeting Wednesday, November 6, 2019 Page 25 resulted in a very large bill. He assured they try to work with residents on payment plans and waiver of penalties in those cases when they can. Mr. Kaszubski stated there is one item for Closed Session this evening. Councilwoman Schmidt congratulated her colleagues on their success in the election. She thanked the residents for having the confidence in her and giving her two more years to serve as their representative on this Council. She thanked her family and friends for all of their support. She acknowledged the hard work of the three challengers, and she commended them all. She hoped to see the synergy of the City move ahead over the next two years. She addressed the comments regarding Merrill, noting it is residential on one side and manufacturing on the other side. She claimed there is no residential street in this City that has a 35 mile-per-hour speed limit, and she felt those homes should take precedence over the manufacturing when it comes to speed limits on Merrill. She felt everyone in that neighborhood would be upset if they did not allow right turns off of Mound or no right turns off of Merrill onto their streets. She felt they need to do something now and have it handled before spring, so she asked Mr. Vanderpool, along with administration, to look at this. She stressed the residents of Sterling Heights deserve safety on their streets. She also wants to make sure semis are not stacking in the left-turn lane on Merrill because that has been an issue. She stressed they need police officers to enforce the rules on Merrill and all of the surrounding side streets. She addressed the question of water bills and noted her water bill was in line with Regular City Council Meeting Wednesday, November 6, 2019 Page 26 what it has been, adding that she has a swimming pool. She noted the progress at the Red Run/Schoenherr intersection is getting a little closer to having the left turn light installed, and she hoped it will be finished by the end of November. Councilman Yanez stated he is humbled to be given another two years to serve his community. He thanked all of the voters who came out and supported the Safe Streets millage renewal and thanked all of the candidates. He thanked the Clerk, her staff and everyone who worked to make the election run as smooth as possible. He thanked his wife, children and friends who supported him during another election season. He assured he will continue to strive to make a difference on this Council and in the City, both as an elected official and fellow citizen. He assured he has heard the complaints from residents about speeding in their neighborhoods, and he noted that it will be addressed. Councilwoman Koski thanked all of the residents who voted in this last election, with a special thanks to those who voted for her. She appreciated the opportunity to serve the residents of Sterling Heights for another two years, noting this was her fourteenth election. She thanked her husband, her sons, her granddaughter and her good friends for all of the help and work they did for her, and their continued support throughout the years. She agreed with her colleagues about Merrill needing to be made safer for the residents, and she was confident Mr. Vanderpool will make that happen. She questioned whether Regular City Council Meeting Wednesday, November 6, 2019 Page 27 the light at 19 Mile and Merrill has been replaced yet, and if not, she hoped they can do so. Councilman Radtke congratulated his colleagues on their reelection and commended those who did not win on their efforts. He agreed with Councilman Yanez that elections are humbling. He stressed this is a clean, safe community and the voters give the Council members the mandate to move forward to keep it clean and safe. He assured he has heard all of the residents’ comments and looks forward to two more years of keeping Sterling Heights the safest city in Michigan. Councilwoman Ziarko stated they live in one of the best cities in the country, and to be able to serve the approximate 130,000 residents is an honor and privilege. She added this has given her the opportunity to make some great decisions, acting in the best interest of everyone. She noted she enjoys progressive thinking and “thinking outside the box” to come up with something different. She congratulated her colleagues and thanked all of the people on the ballot, noting that, even for those who did not win this election, there is always something they can do for the City in another capacity. She felt the most important part of yesterday’s election was the passing of the Safe Streets millage renewal. She addressed Mr. Russo’s concern about Merrill Drive because that has been a long-time issue for speeding, and now that the road is fixed, she feared the situation will get worse, so it is an issue that needs to be corrected in the immediate future. She agreed with Councilwoman Schmidt Regular City Council Meeting Wednesday, November 6, 2019 Page 28 about the intersection of Moravian and Schoenherr, adding it is a very dangerous intersection because people do not understand how they are supposed to maneuver that intersection. Mayor Pro-Tem Sierawski congratulated her colleagues, noting that they work well together and each have the greatest interest in the good of the City and desire for the best for their citizens. She thanked her family and friends for helping her, and she thanked their challengers for making them better council members, and for bringing good ideas to them. She also thanked the residents for voting in favor of the Safe Streets millage renewal. Councilwoman Ziarko thanked her family and friends for their help on her campaign. She stated she could not have done it without them. Councilwoman Koski congratulated all her colleagues on their election, and added it is a pleasure to be working with them for another two years. Councilman Radtke congratulated Councilwoman Koski because he believed that the completion of serving this term will make her the longest-serving council member in Sterling Heights history. 14. UNFINISHED BUSINESS There was no unfinished business. 15. NEW BUSINESS There was no new business. 16. CLOSED SESSION PERMITTED UNDER ACT 267 OF 1976 Moved by Ziarko, seconded by Schmidt, RESOLVED, to recess into closed session. Yes: Yanez, Ziarko, Koski, Radtke Schmidt, Sierawski. Regular City Council Meeting Wednesday, November 6, 2019 Page 29 No: None. Absent: Taylor. The motion carried. The meeting recessed into Closed Session at 8:49 p.m. 17. ADJOURN Moved by Schmidt, seconded by Ziarko, RESOLVED, to adjourn the meeting from Closed Session. The motion carried and the meeting was adjourned at 9:05 p.m. MELANIE D. RYSKA, City Clerk