City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, DECEMBER 20, 2022 IN CITY HALL 1. Mayor Taylor called the meeting to order at 7:00 p.m. 2. Mayor Taylor 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, Michael C. Taylor, Henry Yanez, Barbara A. Ziarko 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 presented. Yes: All. The motion carried. 5. REPORT FROM CITY MANAGER Mr. Vanderpool reminded everyone of the holiday schedule, noting that in observance of Christmas and New Year, the City offices will be closed for business on Friday, December 23, 2022, and Monday, December 26, 2022, Friday, December 30, 2022, and Monday, January 2, 2023. The City’s refuse collection will not change during the holiday schedule. Mr. Vanderpool also reminded everyone that the Christmas tree recycling programs are continuing this year, so residents can place their trees out at the curb starting on January 2, 2023, through February 3, 2023. Mr. Vanderpool commended the good work of the city’s employees and departments, who generously gave during the holiday season. They were able to Regular City Council Meeting Tuesday, December 20, 2022 Page 2 help twenty-two families through their Holiday Assistance Program, coordinated through their Community Relations Department and Director Melanie Davis. He added there are several partners who also help with that program, including churches, businesses, and employees. The families who are helped greatly appreciate everyone’s effort. He explained that the Police Department continued with their twenty-fifth annual Cops N Kids and helped forty children purchase toys, clothing, and gifts for their families, coordinated with the Sterling Heights Fraternal Order of Police Lodge 118, the Sterling Heights Police Department, and Target. He extended a special thank-you to Sgt. Margaret Courtley for her help in coordinating this program. Mr. Vanderpool announced that the Department of Public Works held their annual Ken Stempowski Food Drive, collecting food that is then donated to food shelters throughout the area. He reiterated his appreciation for the employees’ good work this holiday season. Mr. Vanderpool stated they have been highlighting the good work of the City’s boards and commissions, and this evening they will be highlighting the Board of Review. He invited City Assessor Robin Palazzolo to provide an update and introduce one of their board members. City Assessor Robin Palazzolo provided some information on the Board of Review, which consists of six members appointed by City Council for two-year terms. She noted these members must be residents of Sterling Heights and must receive training approved by the Michigan State Tax Commission at least once every two years. She explained the Board of Review meets in March, July, and December, Regular City Council Meeting Tuesday, December 20, 2022 Page 3 with an organizational meeting held on the Tuesday following the first Monday in March. She explained it is at this meeting where the Board members will form two committees of three members each. Ms. Palazzolo stated the March Board of Review Meeting convenes on the third Monday in March and are held for no less than three calendar days. She advised these meetings are held for the purpose of hearing appeals of valuation, classification, hardship exemptions, and disabled veterans’ exemptions, and she added that the March meetings are the only meetings where appeals of valuation can be heard. The July and December meetings are for the purpose of making corrections to the assessment rolls. She stressed they have fantastic board members, and she introduced Mr. Ray Nadolski, the Chairperson of one of their Board of Review Committees. She noted he has served on the Board of Review for over thirteen years and is very dedicated. His unique perspective as a real estate agent for over twenty years has been a great benefit to the Board of Review. Board of Review member Raymond Nadolski explained how he started serving on the Board of Review in 2008/2009. He stressed how they try to be honest with the petitioner, and they generally look at the proof and determine if a hardship is met. He added that they have the petitioners raise their right hands to swear they are telling the truth, and since they started doing this a couple of years ago, the hardships have decreased. He wished everyone a Merry Christmas and a Happy New Year. Regular City Council Meeting Tuesday, December 20, 2022 Page 4 Mr. Vanderpool stated the City can take pride in knowing that Sterling Heights is known as having some of the highest property values in the State of Michigan, adding they are consistently ranked in the top five statewide. He pointed out that they rank number one in Macomb County as far as residential valuation. Mr. Vanderpool explained that, at this point, they will be giving their final presentation of the Marijuana Facilities Task Force Report. He stated the purpose of the Marijuana Task Force was to research community interest and best practices with respect to marijuana facilities allowed under state law, and to report their findings back to City Council. This report was due by October 31, 2022, and that deadline was met with a very comprehensive report submitted to City Council. It was publicized on their website, and they will review the highlights of that report this evening. He thanked those who served and worked hard on the Task Force, including the Police Chief, Fire Chief, City Development Director, Community Relations Director, Economic Development Advisor, Finance Director, City Attorney, City Manager, City Clerk, and City Planner. He invited City Attorney Marc Kaszubski to provide the highlights, and that will be followed by comments from their Economic Development Advisor and their Chief Financial Officer regarding the financial opportunities and challenges involved. City Attorney Marc Kaszubski reviewed the status of the law in Michigan, noting there are three current state laws concerning marijuana, which created three different industries. The first was created in 2008, known as the Medical Marihuana Act, or the caregiver/patient model. It decriminalized the use of Regular City Council Meeting Tuesday, December 20, 2022 Page 5 marijuana for medical purposes only and allows registered patients to grow their own marijuana or obtain it through state-registered caregivers who provide product and are reimbursed for their cost, although not in a commercial setting. In 2016, the State passed the Medical Marihuana Facilities Licensing Act (MMFLA), which created state licensing for commercial growing, processing, and sale of medical marijuana to registered patients in the state, thereby allowing the first storefront provisioning centers. In 2018, a statewide ballot initiative was passed that created Michigan Regulation and Taxation of Marihuana Act (MRTMA), which allows the commercial growing, processing, and sale of non-medical marijuana in the state by anyone twenty-one years of age and older. He clarified that all three of these laws and industries remain in effect today. He noted the MMFLA and MRTMA both provide municipalities with the option to either opt in, in the case of medical marijuana, or to opt out in the case of recreational marijuana. He informed that most municipalities in the State of Michigan have chosen not to allow commercial sales of marijuana in their community, and as of July 2022, 161 out of 1,173 municipalities, or nine percent, opted in. He added that only 125 of those 161 municipalities allow recreational marijuana in their jurisdiction. Many allow both, and since this most recent election, a total of 268 out of 1,173 municipalities, or fifteen percent, allow one or both medical and recreational marijuana facilities. Mr. Kaszubski informed that as of July 31, 2022, there are 447 medical marijuana and 541 recreational provisioning centers active in the State of Michigan, but many of these include both licenses. Regular City Council Meeting Tuesday, December 20, 2022 Page 6 Mr. Kaszubski explained the status in Macomb County communities, noting there are currently nineteen dispensaries, or provisioning centers, located approximately within twenty miles of the City of Sterling Heights. There are six adult-use dispensaries that deliver to residential properties within the City of Sterling Heights, two of them located in the City of Utica that provide both medical and recreational marijuana. He explained that up to fifteen additional recreational dispensaries are anticipated to be in the City of Warren, but that pending outcome of litigation. He pointed out the report includes the communities in Macomb County that allow these facilities, and after the most recent election, Chesterfield Township was added to that list. Mr. Kaszubski explained the process by which they surveyed communities that allow these commercial enterprises to operate in their communities and look at the impact. Multiple police departments were interviewed from a law enforcement perspective, and, although there were some concerns raised by residents in public forums, there was no evidence of significant increase in crime or public safety issues reported. There has been an increase in marijuana-involved accidents because of having legalized marijuana in the State, but there is no evidence to suggest that allowing dispensaries in Sterling Heights would have any traffic safety impact. He talked about illicit grow operations (black market), where people do not follow any of the laws and grow marijuana out of their homes. The evidence they have seen to this point is that allowing dispensaries in Sterling Heights will decrease the black market because of the current federal law and the Regular City Council Meeting Tuesday, December 20, 2022 Page 7 availability to transport out of state to other states that do not allow or do not have recreational marijuana licenses available. Mr. Kaszubski stated Police Chief Dale Dwojakowski is present tonight and can comment more on the public safety issues. He invited Chief Financial Officer Jennifer Varney and Economic Development Advisor Luke Bonner to provide the financial and economic impact issues. Chief Financial Officer Jennifer Varney explained the three types of potential revenue the City could receive by allowing marijuana establishments. The first is the Annual Adult Use Marijuana payment from the State of Michigan, which is a payment based on taxes collected by the State through sales tax. She noted that fifteen percent of the amount collected is distributed to municipalities based on the number of establishments in their jurisdiction. In Fiscal Year 2021, the amount distributed equated to $56,453 per establishment. She cautioned it is anticipated the “per facility” amount will decrease in future years as the price of marijuana is decreasing, so for their analysis, they assumed an approximate thirty percent decrease based on information from the Department of Treasury. The second revenue source is through application and renewal fees, noting the law allows municipalities to charge a maximum of $5,000 fee per application and per renewal to defray the cost of administration and enforcement. She pointed out the initial income would be larger, based on approximately thirty applications, but the income would likely go down depending upon how many facilities the City would approve. The third source of income would be from increased property taxes due Regular City Council Meeting Tuesday, December 20, 2022 Page 8 to redevelopment of property to house these facilities, and they estimate a city property tax increase of about $5,300 annually per establishment based on an average assessment of similar establishments in neighboring communities. Ms. Varney explained there are costs to administer the program, some of which would include consultant fees to review the initial applications, ongoing administrative fees for renewals and enforcement, attorney fees for the development of the ordinance and the administrative process, as well as legal fees for potential litigation. She emphasized that legal fees are difficult to estimate, but nearly every community that has allowed limited licenses has been involved in some type of litigation with the applicants not selected. She showed a chart reflecting estimates of potential net revenue to the City over a five-year period in two different scenarios. The first scenario assumes the City would allow five provisioning centers and receive thirty applications, and this would equate to about $178,000 per year. The second scenario assumes the City would allow ten provisioning centers, and the average annual revenue would equate to $410,000 per year. She invited Economic Development Advisor Luke Bonner to review the indirect economic impact to the City, as well as the community engagement efforts undertaken as part of this process. Economic Development Advisor Luke Bonner explained they looked at some existing studies on economic impacts, and they interviewed a local dispensary to gain an understanding of the operation. They looked at provisioning centers and dispensaries, and they found they operate very similarly to small restaurants and Regular City Council Meeting Tuesday, December 20, 2022 Page 9 small retail operations, with an average of twelve to fifteen employees making between $15 and $17 per hour, and managers making approximately $70,000 annually plus bonuses. He compared this to a manager of a T-Mobile retail store or a Chipotle restaurant. The economic multiplier for this scenario came out to about $530,000 for wages, with an economic multiplier of 2.398, which is slightly higher than a typical retail multiplier of 1.8, so indirectly that equates to an additional $1.2 million outside of the dispensary. Mr. Bonner explained they undertook community engagement with two different forums, including a stakeholder forum which included health systems, school districts, utilities, local businesses, clergy, developers, and local brokers, and a resident forum, open to residents. He informed that both forums were facilitated by Strategize. They also conducted a statistically valid community survey with over four hundred responses, done by ETC Institute. Both forums showed a lot of the same interest in what people thought were negative aspects about allowing dispensary operations, including concerns about mental health, physical health, traffic congestion, property values. He also noted there was a lot of optimism reflected as well as far as what it can do to create jobs, increasing property values, etc. He reviewed some of the survey results, specifically one question which asked survey participants to rank their level of agreement on the statement, “Sterling Heights should allow the retail sale of marijuana in commercial/industrial areas.” He indicated fifty-nine percent of survey participants indicated “strongly disagree” and “disagree”, while forty-one percent indicated “strongly agree” and “agree.” He Regular City Council Meeting Tuesday, December 20, 2022 Page 10 explained this is similar to the 2017 survey that was conducted by the same group, and that was a 60/40 split. The forums were more evenly split between those in favor and those in opposition. He invited City Attorney Marc Kaszubski to speak on the legal issues. Mr. Kaszubski explained they went to the communities that have implemented this so they could look at their ordinances, zoning, and licensing considerations. He advised that the MMFLA and the MRTMA both provide some latitude to local communities with respect to zoning and varying degrees of licensing controls, so they would not lose a lot of control if these establishments were to be allowed. They used the City’s consultant, Wade-Trim, to look at best practices of these communities. Common zoning questions and where these could be located would be in medical areas, industrial, commercial, downtown districts, and adult use. The zoning amendments would use zoning as a right, overlay districting, special land use, and a great emphasis on buffering. He cautioned this is where the litigation has been occurring, and because of that, careful consideration of the zoning ordinance and extensive planning and the impact need to be considered before any type of information can be considered. He explained the MMFLA provides the most flexibility, whereas the MRTMA prohibits municipalities from adopting regulations that conflict with the MRTMA, and/or any state-issued rule issued. It also prohibits “unreasonably impracticable” regulations, which is where the litigation seems to be going and has not been litigated to its full extent. Mr. Regular City Council Meeting Tuesday, December 20, 2022 Page 11 Kaszubski outlined some of the “Best Practices” identified in municipal interviews, which was included in the report. Mr. Vanderpool concluded that they have highlighted the very comprehensive report this evening, but there are more details on the report available by scanning the QR code shown on the screen, or by going directly to the City’s website at www.sterling-heights.net. The full report is available to anyone who would like to review it. He advised the City Council has a few options to consider, and although they have had less than sixty days to delve into it, they can continue to get community feedback. He noted they have done a significant amount of that in terms of soliciting stakeholder feedback. Anyone wanting to comment can email cityhall@sterling-heights.net to provide their thoughts, and they will be shared with City Council. He added they welcome any thoughts or comments from City Council this evening, and he reminded there is a Strategic Planning Session scheduled for January 23, 2023, where they will also welcome additional comments and feedback. Mr. Vanderpool thanked the Mayor and City Council for creating the Task Force and charging them with the objectives initially set forth. He felt they have been met, but assured they are happy to provide any additional information the Council would desire and happy to answer any questions this evening. Mayor Taylor opened the floor to Council to make comments or ask questions, but no one spoke. Regular City Council Meeting Tuesday, December 20, 2022 Page 12 Mayor Taylor felt this will come back at some point. He thanked the Marijuana Task Force members and participants and appreciated their hard work. He predicted that at some point, Sterling Heights will have marijuana facilities. He emphasized he trusts the City Administration over a consultant and felt this would be the best way to look at the information. He is aware the staff has a heavy workload, so adding a project like this on to them this year was most likely a hardship, but he thanked them for going through this exercise. He stressed the report is thorough, comprehensive, and very professional, and it will be helpful to himself and City Council when making their determination. Mr. Vanderpool concluded his report by talking about the upcoming snow in the forecast that may result in a snow emergency having to be issued. They may likely be enforcing their on-street parking prohibition in the snow emergency, which means they will be writing tickets. He urged the community to comply with the requirement, noting it is imperative to be able to get emergency apparatus through their neighborhoods. He urged those who have not done so to sign up with the City for emergency alerts, and they can do that through the City’s website to either get an email or text message. He added that they are closely monitoring this situation, and their Municipal Security Team will be meeting on Thursday afternoon to chart the course based on more accurate weather conditions. 6. ORDINANCE INTRODUCTIONS Regular City Council Meeting Tuesday, December 20, 2022 Page 13 A. Mayor Taylor stated this item is to introduce the first amendment to the Appropriations Ordinance for the 2022/23 fiscal year. He invited Finance and Budget Director Jennifer L. Varney to give a presentation. Finance and Budget Director Jennifer Varney stated she is here tonight to introduce the first amendment to the Appropriations Ordinance. She advised the budget is normally amended twice each year: once in December, and once at the end of the fiscal year. She explained the first amendment carries forward unspent funding from projects that were approved in the prior year that will not be fully completed until this year, and it recognizes new grants and other items that have come before Council since the budget was adopted. Ms. Varney showed slides reflecting reappropriated expenditures, and they had increases from six settled contracts. She added the primary reason for some of those increases was higher defined contribution matches and increased contributions to health savings accounts for most employees. There are grant- funded expenditures, such as some for election supplies, firefighter physicals, and funding for a sobriety clinic. Estimated funds for the City Branding Strategy that was prioritized at the summer’s Strategic Planning Session is also included. She advised that there are offsetting revenues for most of those increases, including an increased revenue-sharing estimate since the budget was adopted. They have grant revenue that offsets the grant expenditures, and they recently received reimbursement from Macomb County for the Sears Vaccination Center, although they are still waiting for the FEMA money reimbursement. She advised the net Regular City Council Meeting Tuesday, December 20, 2022 Page 14 result is a contribution to the General Fund balance of just under $400,000, which is about $90,000 more than the adopted budget. She explained this keeps their cumulative General Fund balance at about twenty-eight percent, or about $33 million. She noted the budget for other City funds is being adjusted by approximately $19.9 million, with $11.5 million of that due to unspent projects carried forward to this year, and the carrying over of unspent capital projects, which totals $5.8 million. She added that includes approximately $1 million for the remaining expenses on the new DPW Building, and about $2.1 million carry- over for sidewalk gap and repair programs. Ms. Varney concluded that this is the first reading of this ordinance which is scheduled for adoption at the January 3, 2023, meeting. Mayor Taylor opened the floor to the audience, but no one spoke. Moved by Sierawski, seconded by Ziarko, RESOLVED, to introduce the first amendment to the Appropriations Ordinance for the 2022/23 fiscal year. Mayor Taylor recently spoke with Mr. Geoff Gariepy, a member of the Planning Commission and a member of their CERT Team, who pointed out they have been expanding their special events throughout the year. He pointed out the tremendous amount of people at Sterlingfest and the weekly Farmer’s Market. They also held a Juneteenth celebration, as well as a number of other events. He has observed the CERT and Citizens on Patrol team do an excellent job in supporting their Police Department, even though they are not provided with a lot of equipment from the City. He noted that Mr. Gariepy had asked about the Regular City Council Meeting Tuesday, December 20, 2022 Page 15 process regarding possibly putting something in the budget for some radio technology. He understands the radios used by the Police Department are very expensive, but there are other alternative ways to download apps on cell phones to have good communication. He stated he does not have a specific number but will ask Mr. Gariepy for a more concrete proposal on what they could use, how it could be used, and how it would benefit the residents of the City. He did not feel that it would cost a lot of money, but he assured he will try to get that information for the next City Council meeting. He suggested possibly the Police Chief can provide input on that at the next meeting. Councilwoman Ziarko agreed with Mayor Taylor but felt if the liaison to both of those groups could meet and look at how what is supplied to them would be interactive with the Police Department, she felt that would be beneficial. She felt the recommendation of what to purchase should be done by staff rather than the volunteers. Mayor Taylor agreed, and he understood Mr. Gariepy was looking at something where the members could communicate with each other. It is difficult for members of the CERT team to communicate with each other during an event to make sure they are getting deployed to where they need to be. Councilwoman Ziarko understood that many times they are using their own personal cell phones to communicate with each other. Mayor Taylor felt that rather than getting their phone out, scrolling to the contact, they can use an app that allows for one-touch communication through a radio Regular City Council Meeting Tuesday, December 20, 2022 Page 16 contract with their cell phone to another person who also has the app downloaded. He felt that with earpieces included, it could be a cost-effective alternate to purchasing dozens of radios at thousands of dollars each. He assured he will contact Mr. Gariepy and Chief Dwojakowski tomorrow. Councilwoman Schmidt suggested getting Mr. Gariepy together with the person in charge of Citizens on Patrol (COPS) and a liaison from the Police Department so they can work together to make sure those two groups are covered with the same equipment. Mayor Taylor agreed with Councilwoman Schmidt’s suggestion. Councilman Radtke felt Mayor Taylor’s suggestion is well-timed, noting the high turnout at community events. He indicated that helping the ability for COPS and CERT to communicate is essential. He suggested in looking at the surplus in the budget, they should work through their Master Plan and Zoning Map and Code. He recalled it was originally budgeted at $200,000 to hire a consultant to help them with this project. He indicated that with their surplus, this could help to pay for that without taking from another program. He pointed out that, with all the projects that have come through over the last several months, they spot-zoned a couple of times and talked about the future of the area. He noted that the Master Plan does not meet their Zoning Map, and he felt this is an opportunity for the City to use that money to bring this up to date. He added that there are three new employees in the Planning Office who can get this going without having to wait for the new fiscal year. He urged his colleagues to give this some consideration, Regular City Council Meeting Tuesday, December 20, 2022 Page 17 especially considering the Zoning Map has not been updated since 1989. He noted the Planning Commission and Zoning Board of Appeals are asked to interpret two documents that conflict with each other, although he added they are doing the best they can. Councilman Radtke stated that today, the City of Eastpointe released a Master Plan for the reimagination of Nine Mile Road. This was done by McKenna and this document makes large changes as well as small code changes to create a unified area which he felt could be looked at in this city to benefit the Van Dyke Corridor and other places with mixed use nodes. They could require that all buildings face the street and have entrances from the street, share parking, and have one streetscape façade. He stated he forwarded the report to Mr. Vanderpool in the hopes he will distribute it. He pointed out that, up to this point, the City has created overlay districts, but developers have noted there is not a lot of instruction. He commented that the City of Eastpointe, in this document, will be banning office and residential use on the first floor of buildings that front Nine Mile Road. Yes: All. The motion carried. B. Mayor Taylor stated this item is to consider introduction of a map amendment to Zoning Ordinance No. 278 to conditionally rezone property situated on the west side of Ryan Road, south of 15 Mile Road, in Section 31, from O-1 (Business and Professional Office District) to RM-3 (Multiple Family Mid and High Rise District); Case PZ22-0005. He invited Assistant City Planner Jake Parcell to give a presentation. Regular City Council Meeting Tuesday, December 20, 2022 Page 18 Assistant City Planner Jake Parcell stated they are here for the development referred to as Ryan Pointe Apartments, with a presentation prepared by Planner II Alexis Richards. He explained this application is to rezone the property from O-1 to RM-3 under Conditional Rezoning, with several variances included as part of the Conditional Rezoning. He advised this was approved by the Planning Commission at their meeting on October 18, 2022, after making some changes following the September 14, 2022, meeting. He explained the site is located on Ryan Road, south of 15 Mile Road, and the current use is a vacant building that was a former Knights of Columbus clubhouse. The Master Plan designates this area as a Traditional Mixed-Use Node, and the development is proposed as a three-story apartment building with a total of fifty-five units, ten of those being one-bedroom units, and forty-five of those being two-bedroom units. They will range from 680 to 900 square feet per unit, with a market rate monthly cost of $1,500 to $1,800 per unit Mr. Parcell stated the property does not abut any single-family residences, and there will be pedestrian amenities on site, including building areas, pergola, walking trails, picnic space, and dog care stations that lend to the amenities people on site can use. The property is currently zoned O-1 but there is no other O-1 zoned property surrounding it. He showed a map and aerial view of the site and surrounding properties and reviewed their current zonings. He talked about how the site will be developed and showed the proposed site plan, and he talked about the mixed-use district. Although the structure itself is not a mixed-use structure, it adds to the designation of the traditional mixed use by providing a Regular City Council Meeting Tuesday, December 20, 2022 Page 19 new use on site and providing pedestrian amenities with it and brings the site closer into compliance with the Master Plan. He showed slides of the landscaping plan, the architectural renderings and floor plans. Mr. Parcell explained that between the September 14 and October 18 Planning Commission meetings, the applicant revised their plans to show only fifty-five units, which allows for more recreational use on site. He reviewed some of the modifications that will be part of the rezoning, including parking minimum, distance of parking from building, eliminating parking for recreational boats and vehicles, elimination of required masonry wall in lieu of a green belt, and variances on both the recreational space requirement and the density requirements. He explained that this development increases the density of the node, as well as adding new parking islands and reducing parking to be more pedestrian friendly. He also noted it enhances the walkability of the site. He addressed its impact on the Sustainability Plan, noting they are providing walkability on the site, promoting higher density in a residential area, and helping to add to horizonal mixed use. This will increase walkability and public transit to be better utilized so that people can travel along this corridor and node relatively easy without getting into their vehicles. He also addressed the impact on the 2030 Visioning Plan. He offered to answer questions. Mayor Taylor invited the applicant’s representative, Mr. Phillip Ruggeri, to give a presentation. Regular City Council Meeting Tuesday, December 20, 2022 Page 20 Mr. Phillip Ruggeri, representative, was present and introduced Applicant Fadi Seman and Architect Mark Schovers. He commended the Planning Department for their excellent job in providing an overview of the proposal. He explained they originally proposed sixty-one units with a lot less recreational space, but they have listened to the concerns of the residents and the Planning Commission to reduce it to 55 units. The previous owner of the property was a doctor who tried to obtain some type of medical service to occupy the building, but that did not work, and he had no proposals to lease the facility. He stated they want to bring something to Sterling Heights that is unique, so they came up with a very appealing-looking urban look. They made it a pedestrian-friendly facility with walking trail system on the property. They have talked with Henry Ford Hospital System, owner of the property to the north, and tried to integrate this walking system with their sites. He explained his client has not yet received positive feedback, but they want to keep the door open down the road. He felt they may want to see what the construction will look like and how they can work it together with their property. He stressed this is a great product they are bringing to the City, and it is a unique, upscale development which is necessary to attract young professionals and keep options available for their community. He explained that Mr. Seman recently purchased Hatherly Commons at 15 Mile and Ryan, and he recently invested over $1 million in that facility with parking improvements and LED lighting. He is currently redoing the entire sign package for the site. He also acquired the shopping center at the southeast corner of 18 Mile Road and Van Dyke and is in Regular City Council Meeting Tuesday, December 20, 2022 Page 21 the process of redoing it. He has many investments and is also a resident of Sterling Heights. Mr. Ruggeri stated he has had the pleasure of representing Mr. Seman on other projects, and he assured this project is dear to him because it is not something they currently have in this city, so it would be one of the first. He noted it will be at market rate but will be on the higher end. He offered to answer questions. Mayor Taylor opened the floor for public comment on this item, but no one spoke. Moved by Sierawski, seconded by Taylor, RESOLVED, to introduce a map amendment to Zoning Ordinance No. 278 to conditionally rezone property situated on the west side of Ryan Road, south of 15 Mile Road, in Section 31, from O-1 (Business and Professional Office District) to RM-3 (Multiple Family Mid and High Rise District); Case PZ22-0005, and direct Applicant to finalize a proposed agreement so that the City Council may further valuate the offer of conditional rezoning at the January 3, 223 regular meeting. Mayor Pro-Tem Sierawski stated she has reviewed the proposal and the renderings, and she likes the project. She appreciated Mr. Ruggeri’s explanation, and she noted that Mr. Seman has done several projects in the area. She does not feel this is crowding too much into a small area, and it is a beautiful housing development, serving as a nice transition between the single-family residential areas and the apartments and condominiums. She stressed that recreational area is important, and they are providing it in this development. Councilman Radtke supported this conditional rezoning proposal, and he felt it is a very good site plan for the long, narrow property. He clarified he cannot request specific things on a conditional rezoning, but he hoped Mr. Seman would consider Regular City Council Meeting Tuesday, December 20, 2022 Page 22 providing a connection directly from the path to the sidewalk on the north side of the building. Architect Mark Schovers replied that issue came up at Planning Commission, and while they would like to do that, without a commitment from Henry Ford to connect, it would create a dead end and people would have to turn around and go back. Councilman Radtke felt that is a fair response. He also suggested a connection with the patio space in front to the sidewalk on the south side of the property. He indicated this would result in having to go into the building and then come out onto the patio to take the walking path. He felt people will end up making their own path through the flowers, so it would make more sense to connect it. Mr. Schovers assured there is already a connection designated at that location, although he admitted it is difficult to see on the plan. He indicated it would get pedestrians from Ryan Road to the patio, and then around the north side of the building. He felt if Henry Ford does connect and people start using it, they will cut across grass, so at that point, they would put in a connection. Councilman Radtke noted the parking was reduced to ninety-eight parking spaces, and he questioned the Planning Department as to whether that is the right amount of parking or whether it could be further reduced. Mr. Ruggeri assured they will work with the Planning Office to assure what they are proposing makes sense. He stated they do not want to be short of parking spaces. Regular City Council Meeting Tuesday, December 20, 2022 Page 23 Councilman Radtke commented that planning books all indicated that parking should be eighty percent used. He stated he is in favor of the development and will be voting yes. Councilwoman Ziarko questioned whether a traffic study has been done in this area. She noted that the 15 Mile / Ryan Road intersection is very busy, and this development will only have one ingress and one egress. She felt it looks like it is in a good spot, but she is interested in a traffic study. She questioned how many outdoor entrances there will be to the building. Mr. Ruggeri replied that there are four public entrances to the building. He explained that regarding the question regarding a traffic study, an office complex or retail center would generate much more traffic than an apartment complex. He pointed out that people generally go to work in the morning and come home at night, so it does not generate the number of daily trips that are generated with commercial or office. Councilwoman Ziarko noted there is a building on the site, but it has been vacant for a few years, so there has been no traffic. She pointed out they are adding fifty- five units, and although it may not change how she votes for this, she was inquiring whether a traffic study had been done. She reiterated she is interested because it is a very busy intersection. Councilwoman Schmidt noted the plans indicated that they are removing the recreational and boat parking spaces, and she questioned whether it is their intent that there will be no RV or boat parking, even in the standard parking spots. Regular City Council Meeting Tuesday, December 20, 2022 Page 24 Mr. Ruggeri assured RV and boat parking will be prohibited on the site. He emphasized the elimination of this type of parking has been a trend in the City, and they do not want this type of parking on their site. Councilwoman Schmidt questioned whether the four entrances will be secured so that only the residents can enter, and that entry by others would be on a buzzer system. Mr. Ruggeri replied that is correct. Councilwoman Schmidt noted there is only one driveway and questioned whether there will be any access off Bebernick Lane. Mr. Ruggeri assured there will be no connection to Bebernick Lane. Councilwoman Schmidt noted the aerial of the site that was included in their package does not show the church to the south, but it is reflected as an empty lot. She expressed concern about the dumpster placement in relation to any of the single-family homes. Mr. Schovers replied that one of the modifications the applicant made because of the Planning Commission meetings was to move the dumpster forty feet away from residential. He assured the dumpster location complies with the City’s current code. Councilwoman Schmidt commented that she hoped they have provisions made with their refuse company that there will not be 6:00 a.m. dumpster emptying. She agreed with Mayor Pro-Tem Sierawski that other developments have come before Regular City Council Meeting Tuesday, December 20, 2022 Page 25 them, but she likes the fact that the parcel to the south is not residential, and there are not three stories of balconies overlooking single-family homes. Councilman Yanez expressed concern that some other apartment locations have had problems because the people occupying the apartments are not the individuals who are signing the lease. He questioned who will be leasing the apartments, and how they will know that the people who are leasing them are the individuals living there. He cited Sterling Landings as an example where this has allegedly occurred. Mr. Ruggeri assured this is an upscale complex, and that will be reflected by the rent. The tenants will all be screened and subleasing the units will not be allowed. They will b accepted to lease based on their criteria and credit rating. Councilman Yanez questioned whether there will be a leasing agency that will be in charge. Mr. Ruggeri assured there will be a leasing person on staff to monitor this, and they have a maintenance person scheduled 24 hours a day who can also check everything out. He assured if there is any suspicion that this is occurring, they will take care of it. He noted it is a very expensive complex with a lot of monitoring features and security involved. Councilman Yanez wanted to ensure with the applicant that he is providing as much security as possible not only for the renters, but also for the people who live a few steps away in the abutting neighborhood. Regular City Council Meeting Tuesday, December 20, 2022 Page 26 Councilwoman Koski recalled that developers have tried to develop that property for quite a while. She noted that Henry Ford Hospital does not appear to be anxious to connect the path, so she questioned whether the applicant would be willing to create the walking path over to Nelson Park. She mentioned the only problem is that Beaver Creek runs next to CVS, and there is a shrub that is growing at the sidewalk, blocking the view. They will need to contact the City and have someone cut it down, so they have a clear view. She felt there are other alternatives if they cannot get the approval to connect with Henry Ford. Mr. Ruggeri assured they want the path system so they will do everything they can to keep the doors open with Henry Ford Hospital to work it out. He added that if they can connect to Nelson Park, that would also be great, and he added he has a current approved plan in Auburn Hills to do the same thing. Councilwoman Koski noted that Mr. Ruggeri will have another opportunity to work with the Henry Ford system to show them the opportunity available. Mr. Ruggeri explained he used to sit on the Board with Henry Ford Hospital, so he knows a lot of people. He is confident they want to see what is going in before they make that commitment. He noted the people to the north were concerned with safety issues and people walking through their property, but if it is done the right way, people will see it is a benefit. Councilwoman Koski questioned what will be offered to the residents to make them an “upscale development”. Regular City Council Meeting Tuesday, December 20, 2022 Page 27 Mr. Ruggeri assured they will be building a nice quality product inside, including high-quality cabinetry, flooring, appliances, high ceilings, etc. He assured they will be attractive, and he replied to further inquiry that there will be forty-five two- bedroom units measuring 958 square feet each, and there will be ten one- bedroom units measuring 651 square feet. He added that they exceed ordinance requirements as far as minimum square footage for the units. Mr. Ruggeri emphasized it is a nice open-space apartment. Councilwoman Koski asked where the elevators are located. Mr. Schovers pointed out their location on the site plan, noting they are close to the retail office. Mr. Ruggeri explained they have a security system to enter a building. If a driver drops off boxes, such as an Amazon delivery, they can enter the foyer but cannot go further than that. He assured it is a nice system. He replied to inquiry that the parking area is open, and it is on a first come/first served basis. Councilwoman Koski stated it looks like a nice project, and she wished the applicant well. Mayor Taylor appreciated the work Mr. Seman has done in this community, and that fact he also lives in this community. He likes the look of the development and felt it will be a great project. 7. CONSENT AGENDA Mayor Taylor stated this item is consideration of the Consent Agenda. He opened the floor for public comments, but no one spoke. Regular City Council Meeting Tuesday, December 20, 2022 Page 28 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 6, 2022. B. To approve payment of the bills as presented: General Fund - $1,144,981.61, Water & Sewer Fund - $3,720,392.05, Other Funds - $1,930,834.91, Total Checks - $6,796,208.57. C. RESOLVED, to award the bid for the collection and disposal of hazardous household material to ERG Environmental Services, 13040 Merriman Rd., Livonia, MI 48150, for a two-year period at the unit prices bid, with an option to extend the bid award two (2) additional one-year periods at the same unit pricing upon mutual consent. D. RESOLVED, to accept the proposal by Fidelity Security Life Insurance Company for EyeMed vision insurance coverage for eligible City of Sterling Heights employees for the period January 1, 2023, through December 31, 2026, and authorize the City Manager to sign all required documentation. E. RESOLVED, to approve the contract between the City of Sterling Heights and Northern Red Inc., P.O.Box 5431, Pinehurst, NC 28374, for tactical training of the Special Response Team of the Sterling Heights Police Department at a cost of $51,000.00 and authorize the City Manager to sign all documents required in conjunction with this approval. F. RESOLVED, to approve the cost sharing agreement for asphalt resurfacing of Metropolitan Parkway, from Ryan Road to Mound Road, subject to approval by the Macomb County Department of Roads and authorize the Mayor and City Clerk to execute the agreement on behalf of the City of Sterling Heights. G. RESOLVED, to approve the cost sharing agreement for asphalt resurfacing of Schoenherr Road, from 500 feet south of Canal Road to M-59, subject to approval by the Macomb County Department of Roads and authorize the Mayor and City Clerk to execute the agreement on behalf of the City of Sterling Heights. H. RESOLVED, to approve the cost sharing agreement for the asphalt resurfacing of 14 Mile Road, from Hayes Road to Maple Lane Drive, subject to approval by the Macomb County Department of Roads and the City of Warren and authorize the Mayor and City Clerk to execute the agreement on behalf of the City of Sterling Heights. I. RESOLVED, to suspend Governing Body Rule of Procedure No. 2 and hold the second regular meeting of the Sterling Heights City Council in April 2023 on Monday, April 17, 2023, at 7:00 p.m. and direct the City Clerk to provide the appropriate notice as required by Michigan’s Open Meetings Act. J. RESOLVED, to adopt the resolutions accepting Linda Lane (extension), Lucern Lane, Parkside Drive, Muirland Drive and Strathcona Drive in the Regular City Council Meeting Tuesday, December 20, 2022 Page 29 City Local Street System as a public street located within City right-of-way and operated for public street purposes. K. RESOLVED, to set a public hearing on Tuesday, January 17th, 2023, at 7:00 p.m. regarding the application by Meldrum Properties, LLC for a multi- family residential Planned Unit Development (PUD) on approximately two (2) acres of land situated on the west side of Utica Road, between Van Dyke and 19-1/2 Mile Road; PPUD22-0002. L. RESOLVED, to receive the lawsuit, Delta-Echo, Inc. v City of Sterling Heights, et al; Oakland County Circuit Court Case No. 22-196992-CB. M. RESOLVED, to receive the lawsuit, Milewski v City of Sterling Heights, et al; United States District Court Case No. 2:22-cv-12176-MAG-EAS. Yes: All. The motion carried. 8. CONSIDERATION A. Mayor Taylor stated this is to consider nomination to the City of Sterling Heights’ General Employees Retirement System Board. He opened the floor for public comment, but no one spoke. Moved by Ziarko, seconded by Sierawski, RESOLVED, to nominate John Lamerato for consideration as an appointee to the General Employees Retirement System Board at the January 3, 2023, regular City Council meeting. Councilwoman Ziarko stated that Mr. Lamerato has served the City well on their other pension boards and has also served on state boards. She added he will be very helpful on this Board. Yes: All. The motion carried. B. Mayor Taylor stated this is to consider appointments to City of Sterling Heights Boards and Commissions. He opened the floor for public comment, but no one spoke. Water System Advisory Council Moved by Yanez, seconded by Ziarko, RESOLVED, to appoint Debie Thao and Richard Giltz to the Water System Advisory Council to terms ending December 31st, Regular City Council Meeting Tuesday, December 20, 2022 Page 30 2024, subject to the appointees meeting the qualifications set forth in Chapter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. Housing Commission Moved by Schmidt, seconded by Ziarko, RESOLVED, to appoint Michael Venetis to the Housing Commission to a term ending December 31st, 2027, subject to the appointee meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Yes: All. The motion carried. 9. COMMUNICATIONS FROM CITIZENS Mayor Taylor opened the floor for public comments. • Ken Nelson – felt the report from the Marijuana Task Force needs to be presented again after the first of the year; questioned whether City Council must accept this report; questioned transparency, noting it was not listed as a separate agenda item but rather an item on the Report from City Manager. 10. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Vanderpool stated he has nothing further to add this evening. Mayor Pro-Tem Sierawski wished everyone a Merry Christmas and a Happy New Year on behalf of her entire family. Councilwoman Ziarko wished everyone a Merry Christmas and happy holidays. She reminded that if they get the snow that is predicted, there will be many employees out on the roads to ensure everyone’s safety and they will not be with their families, so she suggested offering them water, coffee, or snacks to show appreciation. Councilwoman Koski wished everyone a Merry Christmas and a Happy New Year, and to be safe. Regular City Council Meeting Tuesday, December 20, 2022 Page 31 Councilwoman Schmidt wished everyone a healthy and happy holiday season and a Merry Christmas. Councilman Yanez questioned the snow totals that are being predicted. Mr. Vanderpool replied that the west side of the state is predicted to receive higher amounts of snow, but even with the start of rain and the four to six inches predicted to follow for this area on late Thursday into Friday, it will place this area into a snow emergency, especially considering the bigger problem of the high winds that are supposed to gust to fifty knots. This could cause major power outages, and the temperatures are expected to dip into the single digits. Councilman Yanez questioned whether the City has potential plans for warming centers in the event of major power outages during the storm. Mr. Vanderpool explained their Municipal Security Team is meeting on Thursday. They have procedures set up for warming centers, and he noted in the past they have had to open their Senior Center periodically. They have options with the Community Center, and if there are more broad-based outages, Stevenson High School is a possibility. They also have emergency procedures set up with their hotels as well. He assured they will be monitoring the storm closely and will be in touch with their DTE representatives, along with all the stakeholders who help them through these emergencies, including their contacts with the Red Cross. They have numerous contractors they work with in emergencies, so they are prepared to handle it. He cautioned that it could be highly disruptive to the community. Regular City Council Meeting Tuesday, December 20, 2022 Page 32 Councilman Yanez thanked his colleagues for the good work they have all done on Council this year, and he thanked the citizens for their input. He stated he is looking forward to 2023. He wished everyone a Merry Christmas, happy holidays, and a Happy New Year. Councilman Radtke wished everyone a Merry Christmas, a Happy New Year, and happy holidays. He agreed with Councilman Yanez that they had a very strong year here in the City, and he is looking forward to the New Year. He is aware there is a possibility of a snow emergency later this week, and he urged Mr. Vanderpool that if it is Christmas, possibly they can hold off calling that emergency for a day, noting residents will have friends and family visiting, and they may receive tickets for parking in the street. He also noted if the snow emergency is called on Christmas, their employees will have to leave their families to come in and work. He noted that other cities such as Ann Arbor do not always declare a snow emergency for that very reason. He looks forward to seeing everyone next year. Mayor Taylor wished everyone a Merry Christmas, Happy New Year, and happy holidays. He felt it has been a tremendous year and they have accomplished a lot as a team together. He is looking forward to another successful year. 10. UNFINISHED BUSINESS There was no unfinished business. 11. NEW BUSINESS There was no new business. 12. CLOSED SESSION PERMITTED UNDER ACT 267 OF 1976 Mr. Kaszubski stated there are no items for tonight. Regular City Council Meeting Tuesday, December 20, 2022 Page 33 13. ADJOURN Moved by Ziarko, seconded by Schmidt, RESOLVED, to adjourn the meeting. The motion carried and the meeting was adjourned at 8:37 p.m. MELANIE D. RYSKA, City Clerk