City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, DECEMBER 15, 2020 [HELD BY TELECONFERENCE DUE TO THE COVID-19 STATE OF EMERGENCY] 1. Mayor Taylor called the meeting to order at 7:00 p.m. Mayor Taylor asked, without objection, that the rules be suspended to provide this Council meeting be held via video and telephone conference, in accordance with Michigan Open Meetings Act as amended on October 16, 2020, and that participation of no less than four (4) Councilmembers on this video and teleconference constitutes a quorum for purposes of conducting this meeting. This procedure they are using tonight is a result of the ongoing and current pandemic, for which a state and local emergency has been declared. It is intended to promote the health and safety of the members of the public, city staff, and the City Council, which is the goal expressed in the order issued by the Michigan Department of Health and Human Services on December 7, 2020. Mayor Taylor stated additionally, public comment on any agenda item and participation during communications from citizens will be provided via Zoom teleconference at (929) 205-6099, and when prompted, residents should enter Meeting #92394058932 and press #, noting a passcode is not required. He advised that members of the public may join the meeting via video conferencing by following the Zoom link listed on the agenda. Those wishing to speak on an agenda item and/or communications from citizens will be prompted to press “*9” at the appropriate time if participating by phone, or to Regular City Council Meeting Tuesday, December 15, 2020 Page 2 click the “raised hand” option if participating via video conference, to indicate a desire to participate and allow him to recognize the caller. He added that phone participants may have to press *6 to unmute when prompted, and video participants may have to both unmute and start their video when prompted. He indicated there could be delays based on the number of participants. Mayor Taylor asked if there is any objection to proceeding in the manner he outlined. There were no objections from City Council members. 2. Mayor Taylor recited the Pledge of Allegiance to the Flag on behalf of City Council, and Melanie D. Ryska, City Clerk, gave the Invocation. 3. Council Members participating at roll call: Michael C. Taylor, Liz Sierawski, Deanna Koski, Michael V. Radtke, Jr., Maria G. Schmidt, Henry Yanez, Barbara A. Ziarko. Also Participating: 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 presented. Yes: Sierawski, Taylor, Yanez, Ziarko, Koski, Radtke, Schmidt. No: None. Absent: None. The motion carried. 5. REPORT FROM CITY MANAGER Mr. Vanderpool stated that, in observance of the Christmas holiday, and to help curb the spread of Covid-19, City offices will be closed for business on Thursday, December 24, through Christmas and the New Year’s holiday. The Regular City Council Meeting Tuesday, December 15, 2020 Page 3 City will reopen for business on Monday, January 4, 2021. The City’s refuse collection will be delayed one day each of the holiday weeks. There will be no refuse collection on Friday, December 25 or on Friday, January 1. The City is recycling Christmas trees left at the curb by 7 a.m. on resident’s normal trash day, and this program will run through January 31. The trees will be turned into wood chips and returned to the earth in an environmentally-friendly manner, allowing the City to save valuable landfill space. Mr. Vanderpool proudly reported that close to one hundred families in Sterling Heights and surrounding communities received assistance through the City’s Holiday Assistance Program, and fourteen local organizations, as well as individuals, participated in a sponsorship of local families. The City is still receiving telephone calls from local businesses asking how they can help, so they are still connecting with individuals in need throughout the next couple of weeks. He added that, due to Covid and safety precautions to stop the spread, the decision was made to cancel the annual “Cops and Kids” event this year; however, in lieu of that event, the Sterling Heights Police Department and the Fraternal Order of Police Lodge 118, the Sterling Heights Command Officer and Police Officers Association will be sponsoring multiple families to make sure they experience some joy and happiness this season. Mr. Vanderpool stated that the Department of Public Works held their annual Ken Stempowski Memorial Food Drive, and this year’s donations included non- perishable food items, $1,000 in monetary donations, and nineteen frozen Regular City Council Meeting Tuesday, December 15, 2020 Page 4 turkeys from Thread Craft, Inc. The food will be delivered to the Macomb Food Pantry, where it will be distributed to fifty-two pantry sites across the county, enabling them to feed five hundred people per day. He stated the Mayor, City Council, and he, along with businesses and employees, donated thousands of dollars to a young family’s three children who lost both parents due to Covid. The children, ages 14, 19, and 21, unfortunately lost both their mother and father due to Covid earlier this year, and the Sterling Heights Police Department has been working hard to connect them with as many resources as possible. Today, the three children, along with representatives from the Police Department, were presented with thousands of dollars in gift cards and gifts. He added this is continuing, and there is a GoFundMe effort as well. He expressed pride in the entire organization’s effort to help individuals in need at this time of the year, especially this year, and he thanked everyone involved. Mr. Vanderpool advised that DTE is currently marking trees for their 2021 tree trimming program. He clarified this is not part of the City’s tree-trimming program, but he wanted residents to be aware, adding that DTE provides notice to individuals who are affected, either by letter, door-hanger, or telephone call. He advised it is posted on the City’s website, and more information can be obtained by contacting DTE. Mr. Vanderpool stated they have many businesses that continue to operate through Covid and are doing well, and one of those businesses is AGS, who has been awarded a new contract from their largest customer, which will serve as a Regular City Council Meeting Tuesday, December 15, 2020 Page 5 platform for the company’s entry into the high-tech segment of the bumper assembly business. They intend to add capacity for stamping, plating, and assembly operations in the existing footprint of their campus in Sterling Heights, while also incorporating more autonomous technology. He noted the project is expected to generate a total private investment of $5 million, and create 500 new jobs, resulting in an $850,000 Michigan Business Program performance-based grant. Michigan was chosen for this investment over competing sites in Canada. He informed that the positions being created will include engineers, craftsmen, and operators, all with pay that is above-average and with possibility of promotion within the company. He stated the project is the company’s first autonomous vehicle program in the United States, and he chose to highlight this project because the City of Sterling Heights has been working closely with the company, supporting the project with marketing and recruitment assistance. Those interested in looking for a job can go to the AGS website at www.agsautomotive.com/career-opportunities to learn more about this investment occurring in Sterling Heights. Mr. Vanderpool reported at a recent meeting that the City’s Building Official Mike Viazanko was recognized by the State Building Association for his distinguished service across the state, working with developers and property, apartment, and condominium managers, and he is highlighted this month in a statewide magazine distributed to thousands of individuals across the state. Mr. Vanderpool stated he is very proud of his good work, and this distinction is Regular City Council Meeting Tuesday, December 15, 2020 Page 6 well-deserved, adding he is worthy of the recognition. He congratulated Mr. Viazanko. Mr. Vanderpool concluded his report by requesting the City Council convene in Closed Session pursuant to Section 8-E of the Open Meetings Act, for Council to consult with the City Attorney regarding trial or settlement strategy in connection with Macomb County Circuit Court Case No. 19-001606-NI. 6. PRESENTATIONS A. Mayor Taylor stated this is to receive the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2020. He invited City Controller Nick Makie and representatives from Plante & Moran, PLLC, to give a presentation. City Controller Nick Makie presented the results of the 2020 Financial Audit, which is a very time-consuming and detailed process and involves the cooperation of many employees throughout the organization, so he thanked everyone involved, especially the entire finance team. He provided an overview of the audit and summarized the financial results, adding that the full 147-page audit report is available on the City’s website, and hard copies are available at the library. The net position of the City, which represents total assets minus total liabilities, has increased by $7.5 million from the prior year, with most of this increase in Government Activities and is due to the large investments the City has been making into infrastructure, primarily roads and facilities. General Fund Revenues totaled $109.7 million, and General Fund Expenditures totaled $106.7 million, which added $3 million to General Fund Regular City Council Meeting Tuesday, December 15, 2020 Page 7 Reserves, which was greater than projected. He explained this brings their total General Fund balance to $29.9 million, or 28.04% of General Fund expenditures. In 2021, the projection is to use $750,000 of reserves, bringing their total reserves to $29.2 million, or 26% of expenditures. General Fund revenues were within 0.3% of budgeted targets and decreased $1.9 million, or 1.7%, over the last year, with this decrease primarily due to the rollback of the one-time $1 million increase in the prior year, and partially offset by increased tax revenue growth, $1.3 million in additional federal and state source revenue, and $500,000 less in interest, mostly due to fewer bond proceeds on hand, and decreases of about $1.4 million in decreases in fines and charges for services, primarily due in decreases in court fines related to the operational shutdowns related to Covid. He stated General Fund expenditures were 1.3% lower than budgeted, and every City department came in under budget. Expenditures decreased by $2.8 million from the previous year, which included an $8 million decrease in road construction funding, related to the prior year one-time $1 million increase in taxes. This decrease was offset by $1.9 million in increased pension and OPEC contributions, $1.3 million of increased debt service related to the new DPW bonds, and $1.9 million in increased personnel costs due to contractual wage adjustments and step increases. Mr. Makie reviewed activity in some of the other major funds, including the Major and Local Roads fund, with the revenue totaling over $18 million in 2020. Revenue from the State of Michigan, Act 51 Revenue, totaled$12.4 million, an Regular City Council Meeting Tuesday, December 15, 2020 Page 8 increase of about $600,000 over the prior year. The Safe Streets millage provided $3.5 million for neighborhood road improvements, which is up approximately $200,000 from the prior year. The General Fund provided an additional $1 million toward the Major Road Fund this year. Investment in major roads decreased by $2.3 million over last year, with the actual expenditures, including bonded funds, totaling $14.9 million in 2020. In 2021, budgeted expenditures are $15.5 million. This year’s Neighborhood road projects totaled $6.3 million, with another $7.7 million of investment in 2021. Thanks to the renewal of the Safe Streets millage, over 250 additional neighborhood streets will see improvements over the next ten years. Mr. Makie explained that investment in Parks and Recreation, funded through proceeds of the ReCreating Recreation millage, continued with over $16 million invested in 2020, including $11.7 million related to completion of the new Community Center, and $2.6 million in parks improvements. In the Capital Projects fund, expenditures totaled $20.6 million in 2020, which included start of construction for the new DPW facility, IT upgrades and improvements, completion of grant-funded video conferencing systems for Fire Department, and vehicles. The 2021 budget will see continued investments in capital and facilities, including renovations currently happening at City Hall, the Police department, library, and the completion of the new DPW building. Mr. Makie explained the Water & Sewer fund experienced a small operational loss primarily due to lower usage, which was 9% lower than estimated for the Regular City Council Meeting Tuesday, December 15, 2020 Page 9 budget, and nearly 8.5% lower than the ten-year average. He advised they have worked to minimize losses in the Water & Sewer fund over the past four years after experiencing significant losses during the downturn. The current budget is projected to include an increase in reserves, which is important for future infrastructure improvements. Mr. Makie provided an update on the City’s Retirement funds, noting that the City has continued to prioritize funding of its three retirement plans. The City has made significant commitments to funding these plans, but due to market timing, all plans experienced a decrease in funding percentage compared to the prior year. He added that the equities market was still in the downturn as of June 30, and the asset values reflect this market dip. The Retiree Medical Plan decreased to 55.9% funded. The funding level for the General Employee’s Pension System decreased to 71.6% funded, with both of these plans closed to new hires. The funding level of the Police & Fire Pension Plan decreased to 57.3%, and this is the only plan open to new hires. He stated that, while the decreases may look concerning, they are primarily due to the temporary market decline related to the Covid-19 pandemic. In plan assets, they have since recovered a significant amount of the previous losses, and he compared the balances of November 30 to the liability at year-end on June 30, pointing out that the City is actually 8% to 9% better funded than the report shows as of June 30, 2020, which reflects how volatile the market valuation method can be at any given point in time. Regular City Council Meeting Tuesday, December 15, 2020 Page 10 Mr. Makie stated the City has once again been awarded the Government Finance Officers Association (GFOA) Certificate of Excellence in Financial Reporting, as well as the Distinguished Budget Award. These have been awarded to the City for 31 and 32 consecutive years, respectively, and again show the City’s dedication to excellence in financial reporting. The audit shows that the City’s budgeting and long-term financial planning is on target, and the City continues to add to General Fund Reserves, ensuring adequate resources will be available to weather any current and future economic uncertainty, and they are continuing to invest in roads and community infrastructure. He concluded his overview by stating that all of this is accomplished while maintaining the lowest taxes paid per resident compared to Michigan’s ten largest cities by population. They also continue to have one of the lowest millage rates in Macomb County. He introduced Mr. Joe Kowalski, partner from the City’s independent auditors, Plante & Moran, noting they have spent the last several months reviewing financial records and operations and have issued an unmodified opinion on the Audit and Financial Report, which is the highest rating possible. Mr. Joe Kowalski, partner with Plante & Moran, thanked Mr. Makie for his comprehensive presentation, as well as to the Mayor and City Council for the opportunity to speak at this meeting. He echoed Mr. Makie’s comments about the GFOA award and congratulated the City, noting that is a great accomplishment, especially for the incredibly long streak. Regular City Council Meeting Tuesday, December 15, 2020 Page 11 He thanked Mr. Makie, as well as Mr. Vanderpool, Ms. Varney, and their team for the cooperation throughout the audit. He explained that while the audit is going on, there are people contacting the team throughout the day to ask questions about audit evidence. The City’s books and records were in very good condition, and Mr. Makie was very well- prepared for the audit. He introduced Mr. Dave Helisek, another partner with Plante & Moran, who will talk more about the results of the audit. Mr. Dave Helisek commended Mr. Makie for the nice job he did in relaying the results of the audit. He congratulated the City on their receiving the award for Financial Reporting for 32 consecutive years, adding it is not easy to have a streak that long and a lot of effort goes into preparing that document. He stated Plante & Moran was able to give an unmodified opinion as a result of their audit, which is the highest level of assurance they can give for a set of financial statements, indicating the statements as presented fairly reflect the financial position of the City as of June 30, 2020, and the change in the revenues, expenditures, statements of cash flows and the notes within the document. He reviewed two written deliverables, the first being their report on internal controls. He explained they do not opine on the internal control system, but the auditing standards require them to understand and document that system, test the system, and tailor their audit approach based on the controls within the system. If they identify Regular City Council Meeting Tuesday, December 15, 2020 Page 12 a weakness or deficiency, they document it in writing and report it to this body at the completion of the audit; however, as a result of the audit procedures, nothing came to their attention that would have resulted in a deficiency or weakness in the internal control system that would need to be reported. They were able to complete their audit in a timely manner. The last deliverable is their required communication to those charged with governance, as well as a legislative update, and he provided information on that process. The two- or three-page document indicates the results of their findings, and he pointed out there are no exceptions, which is a good report. The report discussed estimates needed and recorded by the City as part of the process, such as liabilities relating to legacy costs, which is an estimate based on actuarial assumptions. The report indicated they had no difficulties in performing the audit, no significant corrected or uncorrected misstatements as a result of their audit, no disagreements with management. It is a report without exception and one that the City would strive to receive on an annual basis. The communication also includes what is going on legislatively and how it will impact the community from a financial reporting or funding aspect, as well as inclusion of upcoming accounting pronouncements, some of which are significant. He noted these were discussed with the Finance Department, and it provides information as far as background on what Regular City Council Meeting Tuesday, December 15, 2020 Page 13 the impact might look like within the annual financial report. He concluded by offering to answer questions. Moved by Schmidt, seconded by Ziarko, RESOLVED, to receive and file the Comprehensive Annual Financial Report for the fiscal year ended June 30, 2020. Councilwoman Schmidt thanked Plante & Moran for the good news they received tonight, and she thanked Mr. Makie and Ms. Varney, along with their entire department, for their hard work every day to make sure the City is on top of everything. She appreciated all they have done. Mayor Taylor thanked their entire team in the City, noting Mr. Makie, Ms. Varney, Mr. Vanderpool, and the entire team do a phenomenal job of making sure their books are audited properly. He felt receiving the award for 32 consecutive years reflects their transparency and openness. He added they have a great city government, and he is proud to be part of this team. He thanked the auditors at Plante & Moran for their presentation. Yes: Taylor, Yanez, Ziarko, Koski, Radtke, Schmidt, Sierawski. No: None. Absent: None. The motion carried. 7. ORDINANCE INTRODUCTIONS A. Mayor Taylor stated this is to introduce the first amendment to the Appropriations Ordinance for the 2020/21 fiscal year. He invited Finance and Budget Director Jennifer L. Varney to give a presentation. Finance and Budget Director Jennifer L. Varney stated she is here to introduce the first amendment to the Appropriations Ordinance, noting the budget is normally amended twice each year, once in December and again toward the Regular City Council Meeting Tuesday, December 15, 2020 Page 14 end of the fiscal year. She explained the amendment carries forward unspent funding for projects approved in the prior year but not fully completed until this year. It also recognizes new grants and items that have come before Council since the budget was adopted. She noted that revenue and expenditure estimates have also been updated due to changes and expectations from budget adoption, and this is primarily related to the Covid- 19 pandemic. She explained the adopted budget included a use of Fund balance of $2.6 million that was based on conservative estimates of expected revenue impacts of the Covid-19 pandemic. Since the budget adoption, the revenue estimates have been increased $5.3 million to include anticipated CARES Act Grant revenue to be received from the State of Michigan and Macomb County, as well as estimates of state revenue sharing that have been provided by the State that are higher than originally anticipated at the end of last year. She explained that offsetting these increases is a further reduction in anticipated Court revenue of about $1 million, adding that the 41-A District Court continues to be closed to the walk-in general public, and cases are being handled remotely when possible. She indicated that case volume is significantly lower than normal. Court Fine revenue is anticipated to be down a total of about $1.5 million from pre-Covid levels. A reserve has been created for a potential reduction in property taxes to account for potential tax tribunal adjustments. The Budget Amendment also includes a 3% increase to health insurance costs based on increased rates received from Blue Cross, a part-time Regular City Council Meeting Tuesday, December 15, 2020 Page 15 position dedicated to Boards and Commissions, along with related software to manage the program, funding for a Diversity and Inclusion consultant, and increased labor costs for the November 2020 election, although many of these were offset by a grant from the State. She also noted the inclusion of hazard pay for Police and Fire personnel, funded through the CARES Act, additional Covid expenditures primarily related to building reopenings, funding for the hiring of six additional firefighters to staff an additional ambulance, which is funded through another SAFER Grant, and ongoing expenditures for the Facilities Renovation Project. The net result of these changes is a use of Fund Balance Reserve of just over $750,000, which is significantly less than the planned use of Fund Balance in the original budget that was $2.6 million. Ms. Varney stated that for the year ended June 2020, the City was able to add $3 million to Fund Balance, which was approximately $1.8 million more than expected. This brought year-end fund balance to just under $30 million, and this projected use of Fund Balance for the current year will reduce Fund Balance to about $29.2 million, or 26% of budgeted expenditures, which is still a very healthy level and well within best practices. She advised the budget for other City funds is being adjusted by $32 million, and of this amount, $5.6 million is to carry over unspent road project funds, $8.3 million in approved and carryover expenditures for the facilities renovations, $1.4 million in approved and carry-forward expenditures for the Local Development Finance Authority, and the carryover of unspent capital project funds totals $15.9 Regular City Council Meeting Tuesday, December 15, 2020 Page 16 million, which includes the carry-forward funds for the construction of the new DPW facility, as well as other projects and equipment approved in the prior fiscal year. Ms. Varney concluded that this is the first reading of this Ordinance, which is scheduled for adoption at the January 5, 2021 meeting. Mayor Taylor opened the floor for comments from the participating audience, but no one spoke. Moved by Radtke, seconded by Yanez, RESOLVED, to introduce the first amendment to the Appropriations Ordinance for the 2020/21 fiscal year. Councilman Radtke commended City Administration, including Ms. Varney, noting this report is better than they anticipated when they started making cuts at the beginning of the pandemic. He acknowledged part of the reason for that is offsetting money from Lansing, but he also credited smart decisions made by the City. He noted the City originally set aside $20,000 for return postage for absentee ballots, and he inquired as to whether any of that was offset by money from the State. Ms. Varney replied that they spent about $5,000 on return postage, and one hundred percent of that will be reimbursed by the State; however, due to a glitch at the post office, they estimated that is only about one-third of the actual cost based on the number of absentee ballots returned. The post office made an error and did not record all of the absentee ballots so they did not charge the City. She indicated Ms. Ryska believes that the true cost should have been around $15,000 for the return absentee ballots, which would have Regular City Council Meeting Tuesday, December 15, 2020 Page 17 all been reimbursed by the State. She felt they should anticipate $15,000 to $20,000 for this cost going forward per election based on the 35,000-plus absentee ballots that go out each election. Councilman Radtke felt the program showed its worth. He stated he is fully in favor of these budget amendments, and is looking forward to the Diversity Coordinator, which is something he felt they have needed for a while. He commented this is a smart budget and is happy to make these changes and barely dip into the Fund Balance. Councilman Yanez referred to Ms. Varney’s comments that some of their expenses were offset by a state grant. He inquired as to the value of the state grant and whether there was more than one grant. Ms. Varney replied they have had a number of grants, with the primary funding source being the CARES Act this year. They received approximately $1.5 million in CARES Act funding through the County, and City Council approved many items for that spending, including laptop computers, automatic doors, plumbing fixtures, etc. She noted the CARES Act funding comes with a lot of rules so that $1.5 million was offset by specific expenditures. Another grant received was the SAFER Grant in the amount of approximately $1.7 million over a three-year period, which covers the hiring of six more firefighters. She clarified that only about $300,000 of that amount is reflected in this budget based on six months of the cost. The other major grant is approximately $250,000 of CARES Act funding they received for hazard pay for Police and Fire Regular City Council Meeting Tuesday, December 15, 2020 Page 18 personnel, and approximately an additional $3.5 million through the CARES Act for reimbursement for public safety personnel. The CARES Act money from the State allowed a presumption that Police and Fire personnel were diverted to Covid-19 activities, and therefore their payroll was reimbursed. Ms. Varney replied to inquiry that the CARES Act funding of $3.5 million that was used for public safety payroll definitely offset their loss, because that was already in their budget. She explained that, for the most part, the other grants came in with additional expenditures, such as the grant for hazard pay that was ultimately paid out. She added that the $1.5 million of CARES Act funds from the County was spent on computers, automatic doors, etc. A lot of grants, while they bring in more revenue, they also result in more expenses. Councilman Yanez appreciated the hard work of Ms. Varney, the Administration, and all of the department heads to get the community through this difficult time, and he commended them. Mayor Taylor noted the agenda statement reflects a projected use of Fund Balance in the amount of approximately $750,000, and it was previously $2.6 million, so that is a considerable amount less. He inquired as to whether that puts their total Fund Balance at $29.2 million Ms. Varney replied affirmatively. Mayor Taylor inquired as to what is generally considered best practice in terms of percentage of operating expenses for fund balance. Regular City Council Meeting Tuesday, December 15, 2020 Page 19 Ms. Varney replied between twenty to thirty percent is a good goal. She added that she personally likes to see between twenty-five to thirty percent, and at year-end they were at about twenty-eight percent, and with the projected use, they will be at approximately twenty-six percent. She felt they are at a good amount with regard to best practices. She replied to further inquiry that $75,000 was shown for a Diversity and Inclusion consultant. Mayor Taylor inquired as to whether that will be a new contract position, rather than a new employee position. Ms. Varney replied they are currently in the middle of an RFP process for a contract position. Mayor Taylor requested clarification on $55,000 for election expenses. Ms. Varney replied those expenses were primarily labor-related due to the monumental task of this election, resulting in more overtime and part-time wages than originally budgeted, and she reminded that City Council had approved a wage increase for Election Inspectors. She noted that they also received a $60,000 grant from the State to help offset some of those additional expenditures. Mayor Taylor agreed with Councilman Radtke and Councilman Yanez that this was a tremendous job done by the City’s entire team. He commented that the Council normally has a couple of budget hearings in April, so they have a good sense of where the budget will be coming in with a “game plan”, and this year the “game plan” was “thrown out the window”. He felt this is an incredible Regular City Council Meeting Tuesday, December 15, 2020 Page 20 testament to the Administration, Finance and Budget team, and every department to figure out ways to continue providing the highest-level services possible to all residents. They accomplished the goal, by and large, of no interruption to services and will continue that goal. He felt the residents got the value out of this budget. Yes: Yanez, Ziarko, Koski, Radtke, Schmidt, Sierawski, Taylor. No: None. Absent: None. The motion carried. 8. CONSENT AGENDA Mayor Taylor stated this item is consideration of the Consent Agenda. He opened the floor for comments from the public, but no one indicated they wished to speak. Moved by Koski, seconded by Ziarko, RESOLVED, to approve the Consent Agenda as presented: A. To approve the minutes of the Regular Meeting of December 1, 2020. B. To approve payment of the bills as presented: General Fund - $598,668.85, Water & Sewer Fund - $1,877,064.83, Other Funds - $4,508,348.68, Total Checks - $6,984,082.36. C. RESOLVED, to purchase two (2) Life Fitness Integrity DX Powermill Climbers from Life Fitness, LLC, 9525 West Bryn Mawr Avenue, Rosemont, IL 60018, at pricing available through a GSA purchasing contract, #GS-03F-120DA, at a total cost of $10,972.38. D. RESOLVED, to purchase a 2021 Chevrolet Tahoe 4WD police vehicle from Berger Chevrolet, 2525 28th Street, S.E., Grand Rapids, MI 48512, at pricing available through a State of Michigan MiDeal cooperative purchasing contract, #071877001077, in the amount of $38,564. E. RESOLVED, to approve the Coronavirus Aid, Relief, and Economic Security Act Funding Agreement between the City of Sterling Heights and the Suburban Mobility Authority for Regional Transportation and authorize the City Manager to sign the Agreement on behalf of the City. F. RESOLVED, to approve the cost sharing agreement between the City of Sterling Heights, City of Troy, City of Rochester Hills, and the Gibson Intercounty Drain Drainage District for a feasibility study on the establishment of a Chapter 21 Intercounty Drain over the Gibson Drain watercourse between Dequindre and Ryan Roads and authorize the City Manager to sign the agreement and request a $19,300 transfer from the Regular City Council Meeting Tuesday, December 15, 2020 Page 21 Chapter 20 Gibson Intracounty Drainage District to fund the City’s cost share. G. RESOLVED, to approve: A. The Administrative Services Contract with Blue Cross Blue Shield of Michigan for the period January 1, 2021 through December 31, 2021, with monthly fees of $64.17 per employee/retiree contract for administration, and $96.42 per employee/retiree contract for specific stop loss insurance at $250,000 for self-insured retention; and, B. Authorize the City Manager to sign all documents required in conjunction with this approval, upon review and approval by the City Attorney. H. RESOLVED, to accept the proposal by Northern Sign Co., 2181 E. Walton Blvd., Suite 100, Auburn Hills, MI 48326, for fabric replacement on the Van Dyke Mile Marker Monuments and authorize the City Manager to sign the contract on behalf of the City. I. RESOLVED, to accept the proposals by: A. Mando Construction, Inc., 75 Lafayette St., Suite 100, Mt. Clemens, MI 48043, for renovation projects #1, #2 and #3 at Fire Station #5 and the Fire Training Tower at a total cost of $19,700; and, B. Allied Building Service Company of Detroit, Inc., 1801 Howard Street, Detroit, MI 48216, for renovation projects #4, #5 and #6 at Fire Station #5 at a total cost of $13,800. J. RESOLVED, to adopt the resolutions accepting Blue Spruce Drive, Bryce Court, Fuhrmann Drive, Marie Lane, Woods Drive, Harriet Lane, Glenshire Drive (extension), Josephine Drive, Eleanor Drive and Casimira Avenue (extension) in the City Local Street System as a public street located within City right-of-way and operated for public street purposes. Yes: Ziarko, Koski, Radtke, Schmidt, Sierawski, Taylor, Yanez. No: None. Absent: None. The motion carried. 9. CONSIDERATION A. Mayor Taylor stated this item is to consider an Employment Agreement between the City of Sterling Heights and City Manager Mark D. Vanderpool. He invited City Attorney Marc Kaszubski to give a presentation. Mr. Kaszubski stated the Council has before them a proposed amendment to the City Manager’s employment agreement for their consideration. He stated that this year Mr. Vanderpool completed sixteen years as the City Manager for Regular City Council Meeting Tuesday, December 15, 2020 Page 22 Sterling Heights. They have visited the City Manager’s contract periodically over the years and provided base salary increases, based in part by comparable council/manager-run cities, with the last such increase occurring over three- and-a-half years ago. He explained the City Manager’s base compensation appears to have fallen below that of the market with regard to similarly situated city managers. In March 2020, the City Manager began discussions with the Mayor relating to obtain a pay adjustment to bring his base salary in line with the five largest comparable Michigan council/manager-run cities, although the discussions were put on hold at that time due to the onset of the Covid-19 pandemic. He informed the last reported annual base salaries for city managers in comparable Michigan cities were as follows: Grand Rapids $257,500; Ann Arbor $223,600; Troy $167,500; and Farmington Hills $163,200. The average city manager base salary for these municipalities is now $202,950, which is just below but in line with the median base salary of $208,575 for city managers across the country with a population of between 100,000 and 250,000 according to a recent International City/County Management Association survey. He explained the City Manager’s current salary is $165,000, and well below both averages. He indicated that the terms of the proposed contract tonight have largely stayed the same, although he detailed the changes, including the proposal to revise Section 4 to increase City Manager’s base salary to $202,950, as well as an amendment to include an annual cost of living increase going forward based upon the local CPI index. He noted that Regular City Council Meeting Tuesday, December 15, 2020 Page 23 Section 15 is proposed to be amended to include a more formal process for evaluation of the City Manager on an annual basis, and he outlined the details. If approved, the adjustment to the base salary amount would be effective on January 1, 2021. Mr. Kaszubski reiterated that all of the other terms in the City Manager’s contract remain the same as his current contract and has no additional changes. He offered to answer questions. Mayor Taylor offered Mr. Vanderpool the opportunity to comment to Council. Mr. Vanderpool appreciated the opportunity to address the Mayor and Council this evening. He expressed his appreciation for having the privilege of serving as City Manager for Sterling Heights for sixteen-and-a-half years, which is much longer than the average five-year tenure for most city managers in any one city. He attributed it to having a Mayor and City Council that shared a commitment to making Sterling Heights an exceptional community for business and residents. He appreciated the support on the critical and difficult decisions that enabled City Administration to lead the City in a new direction, and together they have transformed Sterling Heights. He also noted he benefited from a staff that believed in a new vision for Sterling Heights and worked hard to make that vision a reality. Mr. Vanderpool outlined some of the changes that have taken place over the years since he started, which was at a time when the City was emerging from a contentious period highlighted by long-term litigation. He stated the City was able to minimize the financial impact of this highly-disruptive litigation and move forward on a stabilized financial footing. Regular City Council Meeting Tuesday, December 15, 2020 Page 24 Through a very proactive financial plan, the City was able to survive the Great Recession, and he outlined some of the City’s accomplishments, including the rebirth of the Chrysler Sterling Heights Assembly Plant (SHAP) through joint initiatives and is now home to the award-winning RAM 1500 Pick-up. The City moved forward on a 2030 Visioning Plan, which has been the catalyst for the incredible transformation of the City since 2015. He cited ReCreating Recreation, reactivating the Clinton River, reconstruction of Van Dyke and upcoming Mound Road, Safe Streets 1 and 2, and investment into neighborhoods through the Sterling Heights Initiative for Neighborhood Excellence are all products of the Strategic Plan. He noted the numerous awards the City has received for being one of the safest big cities in the nation, and the City continues to be recognized for its financial stability through strong financial planning. The City’s approach to sustaining operations and delivering critical public services in these unprecedented times despite risks has been recognized as being innovative and a best practice for municipalities. He stated there are challenges, but he is excited for the future of Sterling Heights and mentioned the potential for a complete redevelopment of Lakeside Mall embodies the ideals of Visioning 2030. He noted the renovations of city facilities are nearing completion and illustrate what is possible when local government is effective, efficient and makes its residents and businesses the priority. He added as a City Manager, these are the victories that help define one’s professional career, but without the successful team approach, these Regular City Council Meeting Tuesday, December 15, 2020 Page 25 victories would not have come to fruition. He looks forward to working to continue this momentum to shape a prosperous future and continue to make Sterling Heights a destination place for residents and businesses and continuing the City’s tradition of excellence. He concluded that he is proud to be part of this championship team and is blessed to be working with a strong, dedicated Mayor and City Council, along with the most innovative, passionate, and skilled employees in the business. He and his family are proud to call Sterling Heights their home, and he thanked Mayor and Council for considering his employment agreement this evening, hoping that his passion, abilities and work ethic over the past sixteen-and-a-half years, as well as his genuine excitement for the future of this great city, merits its approval. Mayor Taylor opened the floor for comments from the participating audience, but no one spoke. Moved by Ziarko, seconded by Taylor, RESOLVED, to approve the Employment Agreement between the City of Sterling Heights and Mark D. Vanderpool and authorize the Mayor and City Clerk to sign the Agreement on behalf of the City. Councilwoman Ziarko apologized to the residents of Sterling Heights and to the City Manager, noting that it was Council’s responsibility to ensure raises for their City Manager were handled incrementally over the last three-and-a-half years and they should not be at a point where they are back-paying. She has received several comments, but only three negative comments from the residents regarding this raise, and she felt that is a good sign. She considered reasons for rewarding an employee for a job well-done, and noted Mr. Regular City Council Meeting Tuesday, December 15, 2020 Page 26 Vanderpool meets or exceeds expectations, is innovative and is a mentor. She noted his mentoring is reflected in the example of two city employees who became city managers in other cities and a Community Relations Director who is now the head of the Communications Department of the largest hospital system in the State of Illinois. She added he works well with other community leaders, has established a revenue base to ensure the City’s financial stability, and has provided growth and development for his staff, which has been evident in the staff’s recognitions from the organizations with which they belong. She mentioned Ms. Ryska, Mr. Viazanko, Ms. Turgeon, and others who have received awards of distinction, and this reflects the team Mr. Vanderpool put together. She pointed out his achievements at the county level, stating she believes that Innovate Mound would not have been a reality if it had not been for Mr. Vanderpool, noting his important part in that project. Councilwoman Ziarko explained that she sits on the Board of Trustees for the Michigan Municipal League (MML) and contacted Executive Director Dan Gilmartin to obtain information on Mr. Vanderpool’s contributions to decisions made on the state level. Mr. Vanderpool was a participant in the Policy Forum Series, always ready for discussion and thinking about things in new ways that demonstrate his leadership for conversation, he provides examples, asks probing questions, and encourages others to engage, and he speaks highly of the opportunities he has to grow and help others in this forum. She noted the Communications Director stated that Mr. Vanderpool is one of the best city Regular City Council Meeting Tuesday, December 15, 2020 Page 27 managers in the State, and he is always willing to step up when asked, citing specific examples. She noted that in 2019, Mr. Vanderpool received the MML’s Exceptional Service Award, and she read a portion of the press release, which highly spoke of Mr. Vanderpool and his talents, achievements, and the respect he has of his peers in local government throughout Michigan. She continued on with many more examples of Mr. Vanderpool’s achievements and strong leadership qualities. Councilwoman Ziarko noted she received two emails today from a couple of people in opposition to this raise; however, she received unsolicited remarks from the business community, including one from a representative from a hospital who referred to Mr. Vanderpool as “one of the best leaders in the county”. Another remark was from one of the utility companies who felt the City “should give Mr. Vanderpool whatever he wants because he is worth it”. Councilwoman Ziarko commented that if they choose not to approve the increase, Mr. Vanderpool could feel his work to promote this City and make it a better place to live is not appreciated, and he is extremely marketable and could seek and find another job; however, hiring someone else to replace him would cost as much or more, and they would be losing the institutional knowledge and stability they already have. She is thankful Mr. Vanderpool has not taken advantage of that. She commented that individuals seeking MPA’s (Master of Public Administration) are on the decline, especially wanting to work in municipalities, and although they may obtain the degree, they choose to Regular City Council Meeting Tuesday, December 15, 2020 Page 28 work in the private sector. She felt that there are times when the “best of the best” is taken for granted because they make the job look easy. Councilwoman Ziarko commented that if they are not willing to pay the person who is “the quarterback” of this organization the money he deserves, she questioned what that means for the directors in the future. They could also run into the situation where the City Manager makes less than some of the directors, which would be off-balance. She stressed she is doing her job as an elected Council member, and that is to represent the residents and make sure they can secure the best city manager to run this city because they have the best form of government. They pay people more who have the experience and knowledge to do the job, and she is grateful that the leader of this team who runs the City and makes them all look good is not only one of the best city managers around, but also one of the best people around. She stressed she is in favor of this raise for Mr. Vanderpool. Mayor Taylor stated he supported the motion and is in favor of it as well. He considers this not only a raise, but as a contract extension and a way of ensuring they can continue to have Mr. Vanderpool’s services in Sterling Heights. He felt whatever happens tonight, Mr. Vanderpool will continue to be one of the finest city managers in the entire country, and he shudders to think about it happening in another city instead of here in Sterling Heights. He reminded City Council that at least several times a year, they recognize one of their own employees for being named as “City Clerk of the Year”, or “Building Regular City Council Meeting Tuesday, December 15, 2020 Page 29 Official of the Year”, or “Parks and Recreation Director of the Year”. He noted that City Council has gone through a rigorous interview process with Fire Chiefs, which is currently an opening in the City, and he claimed two candidates from the outside commented to him how impressed they were with the professionalism of the directors who sat in on the interviews, and how excited they are to join an organization with such professionalism. He stressed that Sterling Heights is a destination community for police officers, firefighters, and their other employees, and that tone is set from the top, expected from Council, and each director, manager, and city employee understands what is expected of them because of the example set by Mr. Vanderpool at the top of the organization. The City receives exceptional service out of all employees, and that is because it is demanded of them. Mayor Taylor stated he had a candid conversation about Mr. Vanderpool with the former Communications Director, who is now working in communications and marketing in one of the largest health systems in Illinois, and she said that Mr. Vanderpool “demands perfection” from her, which taught her that she has to perform at the highest level all the time. He noted that leadership is such a huge benefit to the residents, business community, and all stakeholders in the City. He heard from one or two residents in opposition to the raise, but he heard from a lot of stakeholders in the City, representing the school district, the business district, or charitable organizations, and they all said what a value Mr. Vanderpool is to this City. He stressed the City needs to retain him. He did not feel the timing is Regular City Council Meeting Tuesday, December 15, 2020 Page 30 bad, other than the fact they should have done this years ago to make sure Mr. Vanderpool was being paid at least the average wage. Sterling Heights has always paid above-average wages and expects above-average results. He understands the effects of this pandemic and he receives calls every day from people who are struggling, but he pointed out voting no on this contract is not going to help anyone who is struggling. The City Council has a job to do, and that is to lead through difficult times. Securing the services of Mr. Vanderpool over the next several years will provide a short-term benefit to their residents far beyond having an additional $40,000 in fund balance. He reviewed the totals as earlier reviewed by Ms. Varney. He pointed out this evening they voted unanimously to spend $28,000 on fabric for the Van Dyke mile markers, $38,000 on a Chevy Tahoe, $2 million on a contract with Blue Cross, $33,000 on upgrades to remodel Fire Station #5, which are all worthy causes, and he voted yes on them. They approved a budget amendment where they spent about $55,000 for raises to election workers, with the rationale that they cannot get election workers because those election workers are going to other neighboring cities where they get paid more money. He questioned what will happen if they continue to pay twenty percent under market rate for the City Manager. He stressed the City has the ability to pay this, it is long overdue, and he believed they are getting more than good value for Mr. Vanderpool. He stressed it is the right thing to do to make sure they have steady leadership, and he mentioned how important the redevelopment of Lakeside Mall will be, Regular City Council Meeting Tuesday, December 15, 2020 Page 31 as well as the direction of the City. Mayor Taylor stressed the City has unique and creative solutions to the problems facing everyone, and Mr. Vanderpool is at the top of the organization, making it happen. He stressed he is proud to serve with Mr. Vanderpool and felt he is well worth the money. He cautioned that the cost of bad or average leadership is far greater than the cost of good leadership, and it is a lot more than $40,000. He stressed the reason the City is able to afford and promote the things they do is because they have such a well-run organization. Mayor Taylor commented that he has never had the opportunity to serve with someone who takes so little credit but deserves so much, and every accomplishment in this City has been pushed on by Mr. Vanderpool, who has sat in the back to highlight his Directors, City Council, or someone else. Mayor Taylor stated he receives multiple calls and emails on a daily basis with constituent issues, and they are almost all given to Mr. Vanderpool to address with the appropriate department head, and by the end of the day, those issues are almost always solved, yet others get the credit. He noted this City has thirteen bargaining units, all paid above-average wages because above-average results are expected and obtained. He pointed out that all of the bargaining units get raises every year, and no one has been laid off or has seen their wages decline during this pandemic. It takes about three years to get through all of their collective bargaining agreements, and Mr. Vanderpool waited until the very end of that process to come to Council. He felt the shame is on Council if they do not do the right thing. Regular City Council Meeting Tuesday, December 15, 2020 Page 32 Mayor Pro-Tem Sierawski stated she looked at the four wages that they are using for a comparison to Mr. Vanderpool’s current wage. She pointed out that, although the wages for the city managers in Grand Rapids and Ann Arbor are higher, they also have hospitals and universities, as well as a Downtown Development Authority, so the city managers in those communities has more departments than Sterling Heights. She noted that the City of Troy is paying slightly more than Mr. Vanderpool’s current wages, and she claimed that Troy has a higher tax base. She admitted that Farmington Hills is paying on the low side for their city manager. She pointed out that the Macomb County Executive makes $171,000, and she felt it is a false equivalency to include Grand Rapids and Ann Arbor with the other two cities, as well as Sterling Heights, and she referred to it as “comparing apples to oranges”. She claimed that, while she is not opposed to giving Mr. Vanderpool a raise, they are still 200 employees down from 2009 and positions have not been replaced in many departments, and employees have to pay an additional $100 starting in 2021 for their health insurance every month, so she did not feel this is the time. She addressed the comment about purchasing fabric for the mile markers on Van Dyke but did not feel maintenance costs equate to a 22.4% income wage increase to one person. She clarified that she likes Mr. Vanderpool and felt he deserves all of the accolades he has received, but during this pandemic, she did not feel this is the time for this type of increase. She added that she would be willing to approve a $10,000 increase now, and possibly each year, but not Regular City Council Meeting Tuesday, December 15, 2020 Page 33 $40,000 at one time. Mayor Pro-Tem Sierawski apologized to Mr. Vanderpool and indicated she had talked with him at length, but she stated she cannot vote in favor of this at this time. Councilman Radtke agreed with Mayor Pro-Tem Sierawski and stressed that Mr. Vanderpool is an excellent City Manager, pointing out that he has done so many tremendous things for Sterling Heights. He felt that during the pandemic, when so many people are unemployed and businesses are closed, he felt it is “almost a slap in the face” for Council to give their highest paid employee a $38,000 raise, which would equate to almost 23% from his prior salary, and it breaks down to 6.5% per year. He indicated he does not know of any other employees who receive a 6.5 percent increase every year. He claimed he talked with a lot of residents whose lives are on hold because of the pandemic, and they are not able to make big ticket purchases. He stressed these people live in the community, and the City must feel their pain and “tighten their belt”. He felt it is hypocritical to give one employee a tremendous amount of money but then to ask for state and federal funds to help fud their city. He noted that everyone has their projects and causes for which they are interested, and that is respectable, but he does not know of anyone else who has a guaranteed raise every year. He noted Mr. Vanderpool’s contract is unending, which he is ok with, but he compared salaries of various county executives in southeast Michigan, as well as the Governor, and he pointed out that with Mr. Vanderpool’s increase, he would make more than all of them. Regular City Council Meeting Tuesday, December 15, 2020 Page 34 Councilman Radtke felt the City has too few employees and they need more employees in all departments, added that they have done so much with so little. He contacted the Budget Director to inquire as to the annual cost for an average employee and found that $38,000 equates to half of the costs for one employee for one year. He stated he would be amenable to giving Mr. Vanderpool a raise, but he is not sure this year is a good time for it. He stressed he has to be in solidarity with his residents who are hurting right now. He did not feel that the cities used in comparison for salaries are comparable to Sterling Heights, claiming those communities tax their residents much more, and higher property values and salaries equate to a higher net worth. He reminded that the City of Sterling Heights is still a working-class community. He apologized to Mr. Vanderpool and had requested it not be placed on the agenda. He does not feel it is a good time and suggested that the issue could possibly be reapproached once the pandemic is over. He indicated he will be voting no at this time. Councilwoman Koski stated she was not happy with the City Manager’s contract sixteen years ago because it is a perpetual contract with no ending date. She claimed the four cities used for salary comparison also review their city manager’s contract every year, and at that time, performance is reviewed and a pay adjustment is given. She felt that is what Sterling Heights should have been doing, and they are now in this situation because they did not do that. She pointed out Mr. Vanderpool has had a number of raises, one when he Regular City Council Meeting Tuesday, December 15, 2020 Page 35 was offered a job in another community, and a very large raise was awarded to him at that time in order to retain him. She added he received another raise three-and-a-half years ago, but the City has not been doing their job to review this on an annual basis. She stressed that Mr. Vanderpool does an excellent job for Sterling Heights, and she is proud to call him their City Manager, but she reiterated that they should have been reviewing his contract every single year and giving him pay increases every single year. Councilwoman Koski calculated that, when taking into consideration the proposed salary, including the City’s contribution to deferred compensation, retiree health care, and 401K, she estimated the total package at $236,436 annually. She added that he is worth every penny of that, considering what he has done for the City, the County, MML, and Lansing, and she does not begrudge him the money, but she felt this is not the time to do this because she does not like the way the contract is written, and she will be voting no at this time. She felt they should review performance annually and give him raises as performance indicates. Councilwoman Schmidt agreed this is something that should have been addressed all along, but she believed this is something that is long overdue. She commented that Mr. Vanderpool has the reputation as not only one of the best and most effective city managers in the State, but also in the nation. She stated Sterling Heights has become a benchmark on how to run a big city with excellent services and low crime, while maintaining low taxes. She emphasized this is a result of vision, hard work, forward-thinking, problem-solving, and not Regular City Council Meeting Tuesday, December 15, 2020 Page 36 being afraid to think outside of the box, which are just some of the things Mr. Vanderpool brings to the residents of this City. She pointed out that Mr. Vanderpool has led the city through bleak and challenging times and is always looking to move the City forward while respecting the taxpayers and makes himself available countless hours to any resident or business owner in this community who has an issue. She felt the City is fortunate that Mr. Vanderpool has stayed and not accepted offers from other communities, and she knows he has a love for this City. She felt if they have to go out for a search for a new City Manager, the cost of the search alone would exceed Mr. Vanderpool’s raise in this contract. Councilwoman Schmidt disagreed that this is bad timing, and felt it is perfect timing, sending the message to the residents that they are willing to invest in their community and assure stability. She commented this is not only for Mr. Vanderpool but for future city managers so that they can continue to attract “the best of the best”. She expressed concern that if they keep the wage below the comparable communities, they may “just get what they pay for”. She pointed out Mr. Vanderpool has an open-ended contract, but he is an at-will employee, so he is four Council votes away from losing his job at any point. She stressed she is not willing to lose one of the top city managers in the nation because “timing is wrong”. She commented that they are not raising taxes to give Mr. Vanderpool a raise, and she claimed the proposed raise will cost each household about thirty cents, and that does not include the business taxpayers in the City. She felt this is well worth what Mr. Regular City Council Meeting Tuesday, December 15, 2020 Page 37 Vanderpool brings to this community. She sympathized with the residents struggling now in these unprecedented times, but she took an oath of office to do what is in the best interest of all of the taxpayers in the City, so she will be voting yes on this motion. She commented it is adjusting a pay rate that has been duly deserved, and in line with the fair market value. Councilman Yanez stated that $100 is still a lot of money to him, so some of the money they talk about in government is mind-boggling. He pointed out that government projects are big and costs are relative. He appreciated all of the comments from his colleagues, both for and against, and he referred to the words of the opening invocation, “to give City Council courage and wisdom to do what is right for the people”. He believes everyone on City Council has done that, noting they were very thoughtful in their arguments. He met with Mr. Vanderpool for close to an hour and asked him a lot of questions. Councilman Yanez agreed with Councilwoman Ziarko that Mr. Vanderpool has done a lot of great things in the past, and he talked with another city manager, who referred to Mr. Vanderpool as “the Godfather” because he is so revered amongst other city managers. He felt the value of the pay raise is in having the City to be prepared, and that is one of the values that Mr. Vanderpool provides in leading the City through difficult times. Businesses want certainty and come to this City because they know they will get certainty. He does not view this as much of a pay raise as he sees it as an investment in their community, and he is confident they will get an excellent return on their investment. He noted that Regular City Council Meeting Tuesday, December 15, 2020 Page 38 Mr. Vanderpool focuses on vision, and this City needs that vision, whether it is Lakeside Mall, north Van Dyke, the southern part of the City, etc. He felt next year will be more difficult financially because he did not anticipate receiving CARES Act funding. He stressed they need strong, steady, and respected leadership now and down the road. They know Mr. Vanderpool’s past and know they will have the leadership in visioning for the future. He emphasized they want to continue to make sure their neighborhoods continue to be the safest and best places to live, and he felt the residents all agree they live in a great City. He added that did not happen by accident, but it because they have excellent leadership at the top, all the way down, making sure they are all focused on the betterment of the City. He appreciated that people are having difficult times in this pandemic, and that this is a working-class community, where residents are the first to feel a bad economy and the last to recover from it. He views this as an opportunity they have to act on now as an investment, and he will be voting yes. Yes: Schmidt, Taylor, Yanez, Ziarko. No: Koski, Radtke, Sierawski. Absent: None. The motion carried. B. Mayor Taylor stated this is to consider approval of a memorandum of understanding between the City of Sterling Heights and MAPE Supervisory Employees Union. He invited Mr. Vanderpool to give a presentation. Mr. Vanderpool stated City Council approved a Memorandum of Understanding (MOU) that facilitated the separation of the Purchasing Manager job duties from the newly-created Facility Maintenance Director Regular City Council Meeting Tuesday, December 15, 2020 Page 39 position. This was necessary to ensure that both job classifications were capable at being performed at a high level based on current workloads. Mr. Mark Carufel assumed and has been discharging the duties of Purchasing Manager on a contractual basis. He stated Mr. Carufel had a long and distinguished career as an employee with the City, including serving as Risk Manager, City Clerk, and Purchasing Manager. He explained that Human Resources undertook a recruitment for a new Purchasing Manager this past year, but unfortunately, the application pool was underwhelming and the decision was made to await an improved job market for this critical position. They determined the best course of action was to facilitate Mr. Carufel continuing in the position as a retiree hired by the City as a Purchasing Manager from January 2, 2021 through June 30, 2022, and this will provide a number of advantages, including allowing Human Resources to conduct a thorough external recruitment with the potential of an improved applicant pool. This also allows Human Resources to consider internal candidates due to the availability of Mr. Carufel to train and provide development of a current city employee who may have limited purchasing experience. It will be a cost savings for the City over the one-and-a-half-year reemployment period versus continuing the contractual pay terms. Human Resources approached the Supervisory Employees union and secured its approval of the MOU presented this evening. He explained, other than salary and reasonable paid time off, Mr. Carufel will not receive any other wages or benefits provided to current Regular City Council Meeting Tuesday, December 15, 2020 Page 40 members pursuant to the collective bargaining agreement. The pension retirement benefits to the retiree reemployed pursuant to this section shall not be suspended during the term of the reemployment. Based on the need for someone with exceptional experience and who is highly ethical to fill the current vacancy, and Mr. Carufel’s ability to fill that need, he respectfully requested that the Mayor and City Council approve the Memorandum presented. He offered to answer questions. Mayor Taylor opened the floor for comments from the participating audience, but no one spoke. Moved by Ziarko, seconded by Taylor, RESOLVED, to approve the memorandum of understanding between the City of Sterling Heights and MAPE Supervisory Employees Union to facilitate the re-hiring of retiree Mark Carufel as Purchasing Manager and authorize the Mayor and City Clerk to sign the memorandum on behalf of the City. Councilwoman Ziarko stated she likes the fact there is a beginning and an end to this agreement, and she is comfortable with this proposal. They know Mr. Carufel’s reputation, and she indicated she has no problem as long as they are continuing to try to fill this position with someone else. She felt this is what they need now, and they need to move forward. Councilman Radtke understood that Mr. Carufel will be making seventy-five percent of the wage but receiving no benefits as a rehire since he already retired from the City. Mr. Vanderpool replied that is correct, noting he will make $35.81 per hour, for a 2,080 hour per year schedule. Under the contractual services, they were Regular City Council Meeting Tuesday, December 15, 2020 Page 41 paying over $80 per hour, so this is a significant cost savings to the City. He confirmed there are no other benefits. Councilman Radtke commented that Mr. Carufel has been an excellent employee and has improved the Purchasing Department since he started on a part-time basis. He could see no problem keeping him for as long as he wants to stay because he is doing an excellent job. Mayor Taylor stated he has been fortunate to work with Mr. Carufel off and on over the last eleven years and added that he is a tremendous asset to the City of Sterling Heights. He felt it is a bargain to have him, and he will be voting yes. Yes: Radtke, Schmidt, Sierawski, Taylor, Yanez, Ziarko, Koski. No: None. Absent: None. The motion carried. 10. COMMUNICATIONS FROM CITIZENS Mayor Taylor invited comments from the participating audience, but no one indicated they wished to speak. 11. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Each Council member took the opportunity to wish everyone a Merry Christmas, Happy New Year and Happy Holidays for however they celebrate, and they all urged everyone to be safe, socially distance and wear masks. Mayor Taylor felt there were many great points brought up by his colleagues this evening. He echoed Councilman Yanez’s comments that the City receives tremendous service from their employees, putting residents and businesses first and doing everything they could to make it as close to a normal year as possible, even though it has been a horrible year for everyone around the world. He hoped the country will take this opportunity to see what they have Regular City Council Meeting Tuesday, December 15, 2020 Page 42 accomplished, and that 2021 will be a better year. He looked forward to getting back into City Hall, and he wished everyone a Merry Christmas and a Happy New Year. 12. UNFINISHED BUSINESS There was no unfinished business. 13. NEW BUSINESS There was no new business. 14. CLOSED SESSION PERMITTED UNDER ACT 267 OF 1976 Mr. Kaszubski stated there is one item for a Closed Session this evening. 15. ADJOURN Moved by Ziarko, seconded by Schmidt, RESOLVED, to recess into Closed Session. Yes: Schmidt, Sierawski, Taylor, Yanez, Ziarko, Koski, Radtke. No: None. Absent: None. The motion carried. Mayor Taylor indicated the Council will not be returning back into session this evening. The meeting adjourned into Closed Session at 9:28 p.m. The meeting adjourned from Closed Session at 9:49 p.m. MELANIE D. RYSKA, City Clerk