City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL MONDAY, MAY 1, 2023 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 Mark Carufel, former 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; Mark Carufel, former 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 (7/0). 5. REPORT FROM CITY MANAGER Mr. Vanderpool announced the Sterling Heights Beautification Commission will sponsor its Annual Plant Exchange on Saturday, May 13, 2023, from 9:30 to 11:30 a.m. at the Nature Center. He explained that this popular free-green event allows gardeners to exchange plants of various varieties. He advised anyone wanting more information to visit the City’s website. Mr. Vanderpool reminded that the highly anticipated Treasure Hunter’s Market is scheduled for this Saturday, May 6, 2023, from 9 a.m. to 2 p.m., with approximately 100 sellers on site, providing an opportunity for everyone to get their “garage sale fix”. He noted this is also a very popular event. Regular City Council Meeting Monday, May 1, 2023 Page 2 Mr. Vanderpool explained that with the road construction season starting, there is already significant congestion throughout the City. He commented it is a good sign because they are getting a lot of roadwork done, and he is confident residents will be pleased with it once it is completed. He stated those interested can visit the City’s ConeZone page on their website to get updates on all projects. Some of the larger projects have already started including north Schoenherr, between Canal and M-59, 14 Mile Road, between Maple Lane and Schoenherr, as well as continued work on Mound Road and 14 Mile Road. He concluded his presentation this evening by reminding residents they can get updates by going to the City’s website and looking for the ConeZone page. 6. PUBLIC HEARINGS A. Mayor Taylor stated this is a public hearing and adoption of the 2023/24 Budget. He opened the public hearing and invited Finance & Budget Director Jennifer Varney to give a presentation. Finance & Budget Director Jennifer Varney explained the City Charter requires a formal public hearing be held on the budget before its adoption. She provided a brief overview of the budget, which was submitted to City Council on March 30, and it has been available since that time on the City’s website and at the City Clerk’s office for public inspection. The Appropriations Ordinance was introduced at the April 11, 2023, City Council meeting. Ms. Varney stated the proposed Total Fund Budget totals $238.5 million, and a slide was shown reflecting the major breakdown of that amount into the major Regular City Council Meeting Monday, May 1, 2023 Page 3 funds. The Total Fund Budget decreased $34.5 million, or 12.7 percent, from the prior year. The decreases included less spending in road construction, the American Rescue Plan Act (ARPA) projects and capital projects, primarily due to the timing of project completion, and the Mound Road reconstruction, the majority of which was budgeted in the current fiscal year. She advised that there is increased spending in Local Roads, Water & Sewer Fund, and the General Fund. She added the General Fund Budget totals $125.4 million, which is an increase of $6.7 million, or 5.6 percent, and the major increases are in personnel, primarily due to wage increases and additional headcount, refuse costs due to the new waste contract starting in May, transfers to the Major Road Fund from the General Fund, an increase in liability insurance, and other inflationary increases such as street lighting and contractual services. Ms. Varney explained that two amendments were proposed at the April 25, 2023 budget workshop, as follows: 1) Addition of $35,000 for membership and conference attendance at the National League of Cities; and $25,000 for a study in best practices in lawn care management. She advised they also reduced the Police Department budget by approximately $38,000 for fifty-three bullet-proof vests that were purchased in the current year rather than next year, and that was due to the expiration of those vests. Ms. Varney informed that the expected General Fund Revenues exceed expenditures by about $15,000, so they have a small addition to Fund Balance. She stated the cumulative fund balance continues to be very strong, totaling $35.2 Regular City Council Meeting Monday, May 1, 2023 Page 4 million, or 28 percent of expenditures, and this is a very healthy level that will allow the City to continue to invest in city services and infrastructure while maintaining a low tax rate. Ms. Varney explained the proposed city millage rate for the 2023 tax year is the same as last year at 16.38 mill, with the average taxable value for a home in Sterling Heights rose to just under $92,000, which is about $6,300 higher than last year on average. She noted that equates to a home with a market value of about $256,000, meaning the taxable value for the average resident is only about 36 percent of the market value. The annual city taxes on the average home will be just over $1,500, which equates to $125 per month, about $8 per month higher than last year. She showed a chart reflecting the City’s tax rate in comparison with neighboring communities, noting it continues to be one of the lowest in Macomb County. Ms. Varney summarized that the proposed 2023/2024 budget preserves the City’s solid financial position, has no increase in the tax rate, preserves low water and sewer rates, includes nearly $13 million for road improvements, includes funding for nine additional full-time employees and a college internship program, fully funds all long-term liabilities, funds a replacement ambulance, alternative response vehicles, twenty-one police vehicles, and other public safety equipment, funds an update to the Master Plan, fleet software, and a Water & Sewer Main repair/replacement program, funds Facilities and Parks & Recreation improvements. She stated the Appropriations Ordinance is a legislative vehicle that allows for the expenditure of funds throughout the City and reflects the City Regular City Council Meeting Monday, May 1, 2023 Page 5 Council plans for expenditures and revenues and sets the total millage rate to 16.38 to fund those expenditures. The Appropriations Ordinance was introduced at the April 11, 2023 City Council Meeting, and the ordinance being considered this evening includes the amendments from the April 25, 2023 budget workshop. At this time, they respectfully request the Mayor and City Council approve the amended proposed budget. Mayor Taylor opened the public hearing. He invited comments and questions from the public, but no one spoke. Mayor Taylor closed the public hearing. Moved by Sierawski, seconded by Radtke, RESOLVED, to adopt the Annual Appropriations Ordinance, as amended, for the 2023/24 fiscal year with the following property tax millage rates: 9.4940 mills for Operations, 1.1632 mills for Refuse Collection, 2.4109 mills for Police & Fire Pension, 2.3859 mills for Safe Streets, and 0.9260 mills for Recreating Recreation for a total property tax levy of 16.38 mills. Mayor Pro-Tem Sierawski stated all her questions have been answered. Councilman Radtke commended the City staff on an excellent budget year, adding he is happy to support it. Yes: All. The motion carried (7/0). 7. CONSENT AGENDA Mayor Taylor stated this item is consideration of the Consent Agenda as amended. He opened the floor for public comments. • Pastor Don Gotham, Utica United Methodist Church on Canal Road – thanked Mayor and Council for their proclamation on the occasion of their church’s 200th Anniversary; outlined a number of events planned throughout the year, including June 18, 2023, where they will be having a Proclamation Sunday; local and state dignitaries will be present, and he Regular City Council Meeting Monday, May 1, 2023 Page 6 extended an invitation to the Mayor and City Council, noting if someone is able to attend, they would love to have them say a few words; he thanked the City for being a great partner, and urged the City not to hesitate to contact them if they need anything. Mayor Taylor commented that, prior to the start of tonight’s meeting, Pastor Gotham was telling City Council about the history of their church, and he stressed that two hundred years is quite a celebration. He understands that one of the founding members of the church fought in the Revolutionary War, and another early member of the church was instrumental in the Underground Railroad. He stated it is incredible that they have such a rich history right here. He extended congratulations to Pastor Gotham and his congregation on their 200th Anniversary, and he wished them much success going forward. Moved by Koski, seconded by Ziarko, RESOLVED, to approve the Consent Agenda as presented: A. To approve the minutes of the Special Meeting of April 11, 2023. B. To approve the minutes of the Regular Meeting of April 17, 2023. C. To approve payment of the bills as presented: General Fund - $352,360.09, Water & Sewer Fund - $77,765.39, Other Funds - $809,199.26, Total Checks - $1,239,324.74. D. RESOLVED, to purchase the Assa Abloy SL500 T67 automatic bi-part slider door system for the Sterling Heights Public Library from Assa Abloy Entrance Systems US Inc., 38291 Schoolcraft Rd., Suite 103, Livonia, MI 48150, inclusive of a two-year maintenance contract, at a total cost of $15,048.48, and authorize the City Manager to sign all required documentation. E. RESOLVED, to approve the Application for Waiver of the determination of underfunded status for the Sterling Heights Police and Fire Retirement System and its filing with the Michigan Department of Treasury. F. RESOLVED, to: 1. Approve the cost sharing agreement for concrete repairs to Metropolitan Parkway, from Dodge Park Road to Schoenherr 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; and, Regular City Council Meeting Monday, May 1, 2023 Page 7 2. Authorize a budget amendment in the amount of $506,193.50 from Major Road fund reserves. G. RESOLVED, to accept the proposal by Identity Marketing & Public Relations, LLC., 300 Park St, Suite #265, Birmingham, MI 48009, for a branding and storytelling consultant services. H. RESOLVED, to accept proposals by Mando Construction, Inc., 75 Lafayette St., Suite 100, Mt. Clemens, MI 48043, Allied Building Service Company of Detroit, Inc., 1801 Howard Street, Detroit, MI 48216, and Usztan, LLC, 641 Kingstone Ct., Oakland, MI 48363, for general construction services for a two-year period and authorize the City Manager to exercise the option of extending the terms and conditions of the proposals for one (1) additional one-year period upon mutual consent. I. RESOLVED, to award the bid for the 2023 Local Road Concrete Replacement Program, City Project #23-407, and Major Road Pedestrian Improvements, City Project #23-417, to Zuniga Cement Construction, 22500 Ryan Road, Warren, MI 48091, at a total cost of $3,696,737.50 and authorize the Mayor and City Clerk to sign all documentation required in conjunction with this approval. J. RESOLVED, to waive the competitive bidding requirement in accordance with City Code §2-217(A)(9)(b) and approve the contract between the City of Sterling Heights and Galui Construction Co., 33805 Harper Avenue, Clinton Township, MI 48035, for the 2023 Concrete Sectional Replacement Program, City Project #23-406, Bonneville Drive Reconstruction, City Project #23-411, Pond View Drive Reconstruction, City Project #23-416, and City Hall West Parking Lot Improvements, City Project #23-418, at a cumulative cost of $2,533,248, and authorize the Mayor and City Clerk to sign all documentation required in conjunction with this approval. K. RESOLVED, to: 1. Reject all bids received for auto and light truck parts, ITB SH23-013; 2. Purchase auto and light truck parts from Advance Stores Company, Inc., d/b/a Advance Auto Parts, 2635 E Millbrook Rd, Raleigh, NC 27609, as primary vendor, and Genuine Parts Company, d/b/a NAPA Auto Parts, 2999 Wildwood Parkway, Atlanta, GA 30339, as secondary vendor, at competitive pricing available through cooperative purchasing contracts #2017000280 and #032521-GPC, respectively, through June 30, 2024. L. RESOLVED, to adopt the resolution requesting funding in the State of Michigan 2023/24 Budget to assist municipalities that are meeting funding obligations for employee defined benefit pension plans mandated by Public Act 202 of 2017. M. RESOLVED, to adopt the resolution recognizing and congratulating Utica United Methodist Church on the occasion of its 200th Anniversary. Regular City Council Meeting Monday, May 1, 2023 Page 8 Yes: All. The motion carried (7/0). 8. CONSIDERATION A. Mayor Taylor stated this is to consider a request to transfer ownership of an escrowed 2022 Class C liquor license, with Sunday Sales (AM & PM) Permit, Dance-Entertainment Permit, Specific Purpose Permit (food) and 2 Bars, from Vision Inc. to Que Pasa Taqueria LLC, and transfer location from 32500 Gratiot Avenue, Roseville, to 33874 Dequindre Road, Sterling Heights. He opened the floor for public comment, but no one spoke. Moved by Sierawski, seconded by Ziarko, RESOLVED, that the request to transfer ownership of an escrowed 2022 Class C liquor license, with Sunday Sales (AM & PM) Permit, Dance-Entertainment Permit, Specific Purpose Permit (food) and 2 Bars from Vision Inc. to Que Pasa Taqueria LLC, and transfer location from 32500 Gratiot Avenue, Roseville, to 33874 Dequindre Road, Sterling Heights, be considered for approval. Mayor Pro-Tem Sierawski questioned whether they are just moving their business. She asked the applicants to come up and talk about their business. Owner Gustavo Ruizvelasco introduced himself. His uncle, Badri Hannosh, stated he works in the law office at 33882 Dequindre, adjacent to the restaurant. The representative for the applicant (unidentified) stated Mr. Hannosh purchased the liquor license for Mr. Ruizvelasco from Dooley’s. She explained the applicant specializes in tacos and does charity events. Mr. Ruizvelasco explained they were trying to attend Sterlingfest in July. They donate food to various charities. He stated he is twenty-six years old and is trying to follow his dream as an entrepreneur, growing his business in the Sterling Regular City Council Meeting Monday, May 1, 2023 Page 9 Heights community. He currently has about eleven employees so far, although he admitted it is difficult to find employees in this work climate. Mayor Taylor thanked Mr. Ruizvelasco for introducing himself, and he thanked him for the work he is doing in the community. Councilman Radtke asked Mr. Ruizvelasco about his restaurant and what he serves there. Mr. Ruizvelasco replied they serve beef birria tacos, or red tacos, where the corn tortilla shell is dipped in the red birria sauce, it is grilled, and then dipped into a consommé beef broth. They also have vegetarian options, and he can cook any Mexican dish for patrons who want something different. He added his prices are very reasonable, noting they offer combination meals that come with drinks. Councilman Radtke inquired as to whether this is Mr. Ruizvelasco’s first restaurant. Mr. Ruizvelasco replied he used to manage a Mexican restaurant. Councilman Radtke wished him well, adding that it sounds like a great place. He will be voting in favor of this, and loves entrepreneurs and new restaurants, especially ethnic restaurants. Councilwoman Schmidt noted that Mr. Ruizvelasco indicated he previously worked at another Mexican restaurant. She inquired as to whether that restaurant served alcohol, and whether they went through the TIPS and TAM training. Mr. Ruizvelasco replied yes to both questions. He replied to further inquiry that all his employees will also go through that training. Councilwoman Schmidt questioned whether they cater. Regular City Council Meeting Monday, May 1, 2023 Page 10 Mr. Ruizvelasco replied they have a food truck and will be catering for a wedding on May 17, although that will be his first catering. He replied to further inquiry that it was his food truck in front of Grape Vine. Councilwoman Schmidt explained she belongs to a website, Eat Local Macomb, and they speak very highly of Mr. Ruizvelasco’s restaurant. Mr. Ruizvelasco replied he has had his restaurant for two years. Councilwoman Schmidt noted that word is out about his restaurant and his food truck, so she felt he is well on his way to being successful. She wished him well. Councilwoman Ziarko realized that she has eaten amazing food from that food truck and did not realize it was Mr. Ruizvelasco’s. She commented that the City can also use food trucks in the City for Music in the Park on Thursday nights at Dodge Park, and they hold a food truck rally in September. She added it is great that he is still going to have the food truck as well as the restaurant. She wished him continued success. Mayor Taylor wished him good luck, and indicated they will be voting in favor of this. He encouraged him to contact the City if he ever needs anything or thinks there are ways the City can help his business. Mr. Ruizvelasco thanked the Council and urged them to come to his restaurant and check it out. Yes: All. The motion carried (7/0). 9. COMMUNICATIONS FROM CITIZENS Mayor Taylor opened the floor for public comments, but no one spoke. Regular City Council Meeting Monday, May 1, 2023 Page 11 10. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Vanderpool stated he has nothing further this evening. Councilwoman Ziarko stated they were invited to Advancing Macomb presentations last Friday morning, and she felt they were exceptional. She commended the gentleman from Florida who was giving the presentations. He was concentrating on artwork in cities, and The Halo on M-59 came up in discussion. She added that the City received positive comments on it for trying to do something a little different. She hopes the speaker will be at future conferences because he is very good. 11. UNFINISHED BUSINESS There was no unfinished business. 12. NEW BUSINESS There was no new business. 13. CLOSED SESSION PERMITTED UNDER ACT 267 OF 1976 Mr. Kaszubski stated there are no items for Closed Session this evening. 14. ADJOURN Moved by Radtke, seconded by Taylor, RESOLVED, to adjourn the meeting. Yes: All. The motion carried, and the meeting adjourned at 7:25 p.m. MELANIE D. RYSKA, City Clerk