City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, AUGUST 15, 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 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 (7/0). 5. REPORT FROM CITY MANAGER Mr. Vanderpool reminded everyone that the City offices will be closed on Monday, September 4, in honor of the Labor Day holiday. He indicated that refuse collection will be moved one day later that week, with Friday’s usual collection being on Saturday. Mr. Vanderpool stated he is excited to talk about Velocity Collaboration Center, which is the only one in Macomb County. It is part of a SMART Zone, with approximately fifteen of those in Michigan. The idea behind this center is to devote resources to encourage businesses to start up in the City. The Center provides acceleration services to small businesses that need help with marketing, financing, and other support to launch and grow their businesses. The hope is that those businesses stay in Sterling Heights or the region because everyone benefits. He stressed that, although large corporations are critically important to the City and regional economy, small businesses are the backbone of the economy and equally as important, making up seventy percent of their economic growth. He explained they will be showcasing a new business that has started up in their Velocity Collaboration Center, noting the timing for this presentation is very good. He stated the Regular City Council Meeting Tuesday, August 15, 2023 Page 2 presentation is centered on an innovative, creative mechanism to partially finance college tuition, and he pointed out there are a number of interns in the audience this evening who may be able to benefit from this program. He introduced Marc Alexander, President/CEO of Lite Tuition and provided background on Mr. Alexander’s experience, noting he has earned a bachelor’s degree in business administration from Kettering University, a board member of Freestar Financial Credit Union, serves on the Clinton Township Zoning Board of Appeals, is president-elect of the Utica/Shelby Township Kiwanis Club, a former Housing Commission board member, and a former school board trustee. Marc Alexander, founder and CEO of Lite Tuition, explained in 2009, someone gifted him with an anonymous $16,000 to pay for his last year of college, with the request that he pay this gift forward. He explained Lite Tuition is a platform that allows students to raise money to pay for tuition that is sent directly to the school. He cited an example of a woman who, after sending over 160 checks of $700 or more each, totaling over $135,000, she discovered that over $100,000 of that amount went towards interest to profit Sallie Mae, leaving her a balance of $96,820. She went through breast cancer treatment, and that was not sufficient enough to help with this debt. He cited statistics of the educational system having $1.6 trillion in student loan debt, with 3.9 million students with loans but no degrees. He broke that down to the State of Michigan, noting there is approximately $51 billion in student debt spread across approximately 1.4 million residents. The average balance of debt at graduation is $36,116 per graduate, and fifty-two percent of the loan holders are under the age of thirty-five. He emphasized the adverse effects of student loans, and he urged everyone to not let schooling get in the way of education. He pointed out everyone has a unique journey to the path of education, so whether it is a traditional degree, or possibly just brushing up on skills through certificates to improve performance, or through skilled trades, Lite Tuition is there to help. Regular City Council Meeting Tuesday, August 15, 2023 Page 3 Mr. Alexander talked about the Velocity Center, pointing out there are 902,000 small businesses in Michigan, with only twenty start-up zones, four of those in Region 10, and only one in Sterling Heights. Lite Tuition is now paying it forward to help students around the world. He pointed out Velocity Incubator is a great place to start, noting it takes an idea and provides information on whether it is scalable and profitable. He added it is a great place for someone who has ideas to start. Mr. Alexander talked about how Lite Tuition provides a solution, and signing up and signing in are simple. Supporters can easily navigate their platform to find a student who they would like to support. He concluded his presentation by thanking the City of Sterling Heights for their support of Velocity, adding that Sterling Heights can attract and retain great talent through these efforts. He quoted, “If you want to go fast, go alone. If you want to go far, go together.” He recommended anyone wanting more information to go to www.litetuition.com. Mr. Vanderpool thanked Mr. Alexander for the presentation, and he suggested that college students go to the website and download the app because it could be advantageous to them. He stated the City has a robust internship program, and he invited Human Resources and Benefits Manager Kate Baldwin to give a presentation on the accomplishments of this year’s internship program, showcasing the initiatives, and recognizing some of the students in the audience this evening. Human Resources and Benefits Manager Kate Baldwin explained a formal internship program was launched this past May, and they have had the opportunity to work with approximately twenty interns across various departments over the summer. She stated there were multiple projects that their interns either spearheaded or provided strategic support, and she talked about some of those projects and initiatives. Some of them have worked closely together, and the City has created a program where they are connecting with the students for a biweekly roundtable discussion. A space Regular City Council Meeting Tuesday, August 15, 2023 Page 4 in the lower level of City Hall was created, referred to as the “Intern Hub,” and was designated for their interns to work and collaborate with one another. On behalf of the HR team, she thanked each of them for their efforts and dedication. She noted that their internship program has allowed them as an organization to build relationships and mentor students and young professionals, hoping this sparks an interest in them for future careers in local government, especially Sterling Heights. A list of the names of all of the interns was shown, as well as the offices in which they worked. She extended her gratitude toward the leaders and employees who took place in mentoring these interns. She acknowledged members of their HR staff who led the successful program. A short video recapping the experiences of the 2023 College Internship Program was shown, and this video was created by one of the interns working with Community Relations. Mr. Vanderpool stressed that they are very proud of this program. Ms. Baldwin emphasized they are a fantastic group of students and professionals, and it has been a very rewarding experience for herself and the HR staff. Mr. Vanderpool stated this program is great for the students and young people, but they would like to build a farm system here in Sterling Heights, and it is great to be able to target and identify emerging leaders. A group photo of the interns was taken with the Mayor and City Council. Mr. Vanderpool recognized Ms. Theresa Jarzab and Ms. Sydnie Allor, HUD Program Coordinators for the City of Sterling Heights Community Development Block Grant (CDBG) Program for their outstanding work. He provided some history, noting that the CDBG funding was developed by the United States Congress in 1974 to allow local communities the opportunity to structure the program with federal funding based on their own specific needs. He informed that CDBG allocates funding for a variety of community programs, with the goal of improving the quality of lives of low- and moderate- income residents. This funding supports community services and services Regular City Council Meeting Tuesday, August 15, 2023 Page 5 for senior citizens, eligible public improvement projects, and housing rehabilitation. CDBG partners with and funds qualified non-profit organizations and eligible service providers and government agencies to accomplish the goals of their program. He named some of the recent recipients for funding and noted that CDBG also aids the low/moderate- income through home improvement programs, such as the home property improvement loan program and minor home repair program, both of which are very popular. Each program allocates funding to support critical necessary home improvements, such as HVC work, water, heaters, roofs, etc. He stated that through CDBG, over $20 million has been allocated to qualified individuals and groups over the years through the City’s efforts. The CDBG Program was recently monitored over an extended period of time by the Detroit Office of the U.S. Department of Housing (HUD). They perform reviews annually of various communities, and this year Sterling Heights was chosen because they had not been monitored for a number of years. He added that HUD is very stringent in their standards, and their public reviews can be very harsh. He cited a recent newspaper article reflecting some of these harsh reviews of another community. He explained that fortunately, the results for Sterling Heights did not indicate any deficiencies in their program, and the HUD evaluator provided glowing reviews, with the determination that the City is in compliance with the associated federal regulations, and “they are doing so with less staff than several comparable communities elsewhere in the State.” Mr. Vanderpool quoted several of the comments in the glowing reviews, and he credited the exemplary performance of their two coordinators. He noted that Ms. Theresa Jarzab is a 24-year employee with the City and CDBG Coordinator for the past ten years, and, in addition, oversees their very complicated and highly successful housing project at Schoenherr Towers, which has also received high marks from the federal government. It serves almost 200 senior residents who live in over 150 units. The second coordinator, Ms. Sydnie Allor, started about 2-1/2 years ago as Regular City Council Meeting Tuesday, August 15, 2023 Page 6 a CDBG intern, and she will soon be joining the City’s team in a full-time capacity. He stated she has excelled with the CDBG program and added she is part of their long-range succession plan. Mr. Vanderpool stressed that, without the efforts and the highly detailed work of these two coordinators, the City would not be in this exemplary position. He commended both coordinators on their outstanding work. Mr. Vanderpool concluded his report by requesting City Council convene a closed session at the conclusion of tonight’s meeting, pursuant to Sections 8(c) and 8(e) of the Open Meetings Act to discuss trial or settlement strategy in connection with United States District Court Case No: 2:20-cv-11499. Mayor Taylor thanked Mr. Alexander from Lite Tuition, Ms. Baldwin, HR, and Benefits Manager, and all of the interns who were present tonight and all who did a tremendous job throughout the summer for the City. He thanked Ms. Jarzab and Ms. Allor for their outstanding work as well. 6. ORDINANCE INTRODUCTIONS A. Mayor Taylor stated this to consider introduction of ordinances amending the City Code of Ordinances and Zoning Ordinance No. 278 to update standards for installation of driveways and establish standards for coverage of single-family residential font yards with impervious material, respectively. He invited Dr. Jake Parcell, City Planner, to give the presentation. Dr. Jake Parcell, City Planner, explained this is an impervious surface ordinance update, noting it was before City Council once before, and they have made some significant amendments and tweaked it. He informed it was recommended for approval by the Planning Commission in a 9/0 vote on June 14, 2023, with a few additional changes. This ordinance establishes coverage standards for single-family residential driveways in the City of Sterling Heights, and it is being considered because this impervious surface coverage does not currently exist in the ordinance. It also addresses typographical issues and eliminates inconsistencies between the Zoning Ordinance and the Regulatory Ordinance. He explained the City’s Regular City Council Meeting Tuesday, August 15, 2023 Page 7 Sustainability Plan acknowledges the City’s need to act and protect its water assets by reducing pollution and supporting its practice in improving water quality in the City. Dr. Parcell outlined some of the changes made since the meeting when this was previously discussed. He noted the driveway restriction was twenty-four feet and a cap of forty percent of the impervious surfaces on the front yard. To allow more flexibility, they eliminated the area width requirement for paving in the front yard driveway and increased the maximum impervious surface requirement, thereby accommodating more unique designs, lot shapes and lot widths. It also allows horseshoe driveways for two points of access on busier roads, and turnaround pads, as long as the pad does not exceed two hundred square feet. Another change made is that previously, it was proposed that existing driveways were required to come into compliance if replaced; however, they have changed this to allow the existing driveway as is as long as they are permitted to have the driveway, it must be inspected by the Building Department, and maintained as required by the Property Maintenance Code. If the current homeowner purchases a home where the driveway is paved over forty-five percent, to maintain that driveway in perpetuity and replace it in its full replacement, even if the previous homeowner did not have a permit. He stressed they want to protect their homeowners who have purchased a home with this amount of paving in the front yard. The only instance where they will be required to come into conformance with the forty-five percent coverage is if they have a non- permitted driveway and they are the current homeowner. They will then have to come into compliance on all future developments. The previously proposed requirement to plant a street tree at paving work and that is no longer required in this ordinance. He reiterated that, in terms of working with grandfathering and non-conformity, the City is allowing existing driveways to be replaced with the same dimensions as long as the work was previously completed with a City permit. He offered to answer questions. Regular City Council Meeting Tuesday, August 15, 2023 Page 8 Mayor Taylor opened the floor for comments from the general public, but no one spoke. Moved by Sierawski, seconded by Radtke, RESOLVED, to introduce the ordinance amending Article V of Chapter 48 of the City Code of Ordinances to regulate the use of paving materials for driveways, extension strips, service walks, and approaches on single-family residential lots. Mayor Pro-Tem Sierawski stated she does not have any further questions since it was previously discussed at length, and she is very happy with the changes. Councilman Radtke agreed with Mayor Pro-Tem Sierawski that the changes bring this ordinance into the spirit in which it was intended. He would like to see the street tree requirement brought back, and he noted the Planning Commission had recommended it as well. He felt they have resolved the problem of people that have non-conforming driveways, and if they had followed the rules, they would not be penalized. If they are not following the rules, they will have to bring it into compliance. Mayor Taylor stated he voted no on this the last time it was before them, but he agrees it is important they address this issue. While he supports everyone’s rights to do what they can to their property within limits, they have to be mindful of neighbors in very close proximity and what they do with their property impacts others. He felt this is a good compromise, and he will be voting yes. Yes: All. The motion carried (7/0). Moved by Sierawski, seconded by Radtke, RESOLVED, to introduce the ordinance amending Section 31.01 of Article 31 and Section 3.04 of Article 3 of Zoning Ordinance 278 to regulate single-family residential lot front-yard coverage with impervious materials. Mayor Pro-Tem Sierawski stated that although she does not want to see paved front yards, it was their choice to have done it, but she would encourage them to consider putting some grass in when it comes time for replacement. She appreciated all of the work done on this, and she thanked Dr. Parcell and the Planning Commission. Yes: All. The motion carried (7/0). Regular City Council Meeting Tuesday, August 15, 2023 Page 9 B. Mayor Taylor stated this is to consider introduction of a map amendment to Zoning Ordinance No. 278 to conventionally rezone property situated on the south side of 18-1/2 Mile Road, east of Mound Road, from M- 1 (Light Industrial District) to M-2 (Heavy Industrial District); Case PZ23-0004, 23-0005, 23-0006. He invited Dr. Jake Parcell, City Planner, to give a presentation. Dr. Jake Parcell, City Planner, stated this is an application to conventionally rezone three lots on the corner of Mound Road and 18-1/2 Mile Road. There are three applications associated with this request, but they are all involved in one project, so it is under the same presentation. This is for a rezoning of just over nine acres from M-1 to M-2, currently vacant. This was recommended for approval by the Planning Commission on July 12 by a vote of 9/0. There are five parcels owned by the applicant, one of which is landlocked, and he showed an aerial depicting the parcels in question. The Master Land Use Plan has no designation between Light and Heavy Industrial. He showed a photo of the property, noting one site has been developed, and there are discussions with City staff to develop the rest of the parcels into an industrial park on the corner. He provided a detailed explanation on this unique property, noting there are some abnormalities because there is a width-to-depth ratio problem for the development of the property on 18-1/2 Mile. This rezoning would bring all of the properties under the same zoning classification and allows the lot splits to occur without going through different variance processes and while streamlining the development process. He showed the current site layout compared to the proposed site layout. The curve of the road was a former state trunkline proposed, but when that fell through with Michigan Department of Transportation (MDOT), the parcels were split up and sold, resulting in some unique parcels. Dr. Parcell explained they have been working with the applicant on a path where the parcels can be rezoned, the corner can be brought into compliance, and then administratively handle the lot split, dividing it into four parcels horizontally, Regular City Council Meeting Tuesday, August 15, 2023 Page 10 and the three lots can be developed with a use that will tie it all together. He pointed out there is no ability to have curb cuts on 18-1/2 Mile because of the State’s deed restrictions, so it would all have to be accessed from Mound. There is a curb cut on Mound, and everything will be taken care of with cross- access easements as the new industrial park is developed. Dr. Parcell explained the differences between M-1 and M-2 zoning districts, noting M-2 allows uses that are allowed in the M-1 district, but it also has safeguards within the zoning ordinance to protect adjacent land uses. There was a concern expressed during the Planning Commission process is how outdoor storage can be addressed on an upzoning to M-2. He explained that everything addressed at the site plan review standard is the same as M-1, where everything is required to be located at the rear of the building with very strict screening and fencing requirements. He added that M-2 allows 15 additional feet in height, as well as a larger floor area. This zoning will allow development of a landmark headquarters building to tie the industrial park together. He addressed the performance standards in the M-2 zoning ordinance that allows for the entry users to be good neighbors to adjoining properties, and he outlined those in detail. He assured they have very strict requirements through their zoning ordinance and regulatory control, as well as the Planning Commission through Special Land Uses, to mitigate any concerns that would come with a heavy industrial district. Dr. Parcell summarized the request and offered to answer questions. Mr. Steve Mancini, applicant, 37532 Hidden Valley Court, Clinton Township, Michigan 48036, stated he was raised in Sterling Heights, and he has worked in Sterling Heights since 1974. He provided some of the history of this property, noting Mr. Bonner approached him. Ric-Man was relocating his facility, and instead of locating on 18-1/2 Mile and Merrill, next to the Daman property, the goal was to move Ric-Man away from that property and put it on Mound Road, adjacent to the scrap yard. He stated he has invested a lot of money to make this a nice facility. He noted they intend to expand the Regular City Council Meeting Tuesday, August 15, 2023 Page 11 Plumbrook Reserve, and the goal is to bring someone into two facilities totaling nearly 300,000 square feet of high-tech. They do not anticipate a lot of outdoor storage, but if there is a user who needs it, he assured it will be screened. He requested the Council’s consideration of this and offered to answer questions. Mayor Taylor opened the floor for comments from the general audience, but no one spoke. Moved by Radtke, seconded by Sierawski, RESOLVED, to introduce the map amendment to Zoning Ordinance No. 278 to conventionally rezone the property situated on the south side of 18-1/2 Mile Road, east of Mound Road, from M-1 (Light Industrial District) to M-2 (Heavy Industrial District); Case PZ23-0004, 23-0005, 23-0006. Councilman Radtke could see no problem with this, and he commented it solves the problem for their zoning ordinance and makes the property more attractive for development. It is buffered, with a scrapyard on one side, industrial behind it, and a large roadway in between. He appreciated Mr. Mancini’s work in the City, and he expressed confidence that Mr. Mancini will do a good job. Mayor Pro-Tem Sierawski agreed with Councilman Radtke. She commended Mr. Mancini for the good work he has done in the City, and she added this is a great compromise and use of the property. Councilwoman Schmidt questioned whether there is only one curb cut on Mound to serve the entire property, or whether they will use the curb cut to the Ric-Man property as well. Dr. Parcell believes there are two curb cuts, one feeding the entire industrial park, and one for the Ric-Man parcel to the south. Mr. Mancini showed where the MDOT limited access starts and ends, and he explained when Ric-Man came in front of the City for the curb cut to the Ric- Man headquarter building, the problem was that traffic turning into his headquarters conflicted with Merrill Road. He noted Daman’s entrance is private, and he explained that with the property swap, MDOT has allowed two driveways approximately 300 feet apart, but there will be no driveways along Regular City Council Meeting Tuesday, August 15, 2023 Page 12 18-1/2 Mile Road. He clarified that, until this is approved, the second driveway cannot be installed. Councilwoman Schmidt questioned whether there is a deceleration lane for the existing driveway. Mr. Mancini replied to inquiry that the County cannot require that lane because of the bridge and the guardrail. They worked with everyone to come up with a solution that works best for servicing over 300,000 square feet of industrial space with only two approaches. Councilwoman Schmidt expressed concern that Mound is such a busy road and the fact they do not have a deceleration lane, but she understands it if it is not possible. Councilman Yanez questioned how many people would be working in this industrial park if it is fully occupied. Mr. Mancini replied it is difficult to project, especially post-Covid. He is finding that post-Covid, larger office spaces are being built. He stated Mancini Headquarters is a two-story, nearly 18,000 square foot of office space compared to the 25,000 square foot of shop space. They are proposing a mezzanine offering more office space. He assured the parking spaces proposed meet the City ordinance, and they want to make sure they meet the tenant’s needs as well as the City’s parking ordinance. Councilman Yanez recalled when they were having discussions with the County about this area, there was concern about sidewalks. He noted they could now have a significant number of employees on what he referred to as an “island”, and they will not be able to get around safely unless they can get into their car and drive somewhere. He questioned the status of sidewalks along Mound Road and also crossing 18-1/2 Mile Road. Mr. Vanderpool noted there are some logistical issues, with significant engineering challenges they have to overcome before they can install sidewalks in that area. He assured they will have a contiguous sidewalk, or ten-foot path, along the west side of Mound, from M-59 south to 14 Mile Road. Regular City Council Meeting Tuesday, August 15, 2023 Page 13 He indicated the east side is more challenging, and although they will have sidewalk on the east side, it will go just past 18 Mile Road, but not in this area. They need to address the sidewalk on 18-1/2 Mile Road, which is a city road, but they will need to acquire a lot of right-away and then work with the County to determine the crossing location on 18-1/2 Mile, and whether it will be a pedestrian bridge crossing or it will need to be relocated further back. There is a lot of engineering analysis that will have to be done between the County and the City. Councilman Yanez stated the City is trying to promote non-motorized transportation, and it would be a shame to have employees landlocked and unable to walk to a neighboring area to get lunch without having a car. He commented that this should be a priority as this property is developed. Councilwoman Ziarko appreciated Mr. Mancini’s willingness to compromise, and she inquired as to the location of the three-mile trail. Mr. Mancini apologized for not bringing a plan showing the pathways. He commended Mr. Daman for doing a beautiful job on fifteen acres, called “Plumbrook Preserve”, and now that part of it is on his property, they entered into a joint use agreement and tree preservation easement. Counting the existing paths plus what he is installing will total over three miles. He added it is private, so it is for the tenants and employees. He talked about their goal to clean up the area and add more trees, as well as adding another pathway for his employees to get to the Plumbrook Reserve. Councilwoman Ziarko explained that in some newer developments, they are allowing the developer to landbank some of their property until they actually need it for parking. It would be landscaped in the meantime. She hoped he would consider that as he is developing his plans. Mr. Mancini explained that if a tenant does not require the parking that is required, noting they usually require less parking than required by ordinance, they will keep that in mind and work with the City. Regular City Council Meeting Tuesday, August 15, 2023 Page 14 Mayor Taylor appreciated Mr. Mancini being present this evening, and he stated it was a very thorough presentation. He understands it was not the easiest land swap, so he thanked Mr. Bonner and Mr. Mancini for working through the issues. Mr. Mancini extended an invitation to Council members to come and see the new development. Councilman Radtke echoed the comments of his colleagues, and he added his hopes that they will eventually install a sidewalk. He explained that across the street from this site, in another district, the developers let the City know how much parking they will need. He acknowledged that the subject property is not within that district, but he could see no reason why Mr. Mancini could not do the same thing. He urged Mr. Mancini to let the City know how much parking he needs, and he is confident the City will work with him. Yes: All. The motion carried (7/0). 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. Moved by Koski, seconded by Ziarko, RESOLVED, to approve the Consent Agenda as presented: A. To approve the minutes of the Regular Meeting of August 1, 2023. B. To approve payment of the bills as presented: General Fund - $1,459,310.57, Water & Sewer Fund - $3,935,259.31, Other Funds - $4,949,043.68, Total Checks - $10,343,613.56. C. RESOLVED, to award the bid for rodent control services to Abell Pest Control, 3549 Airport Rd., Waterford, MI 48329, for the term of August 16, 2023 to August 15, 2024 based upon unit prices bid and authorize the City Manager to exercise the option to extend the bid term two additional one-year terms at unit prices bid. D. RESOLVED, to: 1. Award the bid for the sanitary sewer relocation project at the intersection of 17 Mile Road and Van Dyke, inclusive of alternate bid #1, to DVM Utilities, Inc., 6045 Sims Dr., Suite 2, Sterling Heights, MI 48313, at a total project cost of $282,710; and 2. Authorize a budget amendment in the amount of $282,710 from Water and Sewer Fund reserves. E. RESOLVED, to approve the service agreement between the City of Sterling Heights and Mattarella Consulting, LLC, 183 Washington, Mount Clemens, MI 48043, through September 30, 2024 and authorize the City Manager to sign the agreement on behalf of the City. F. RESOLVED, to approve the drain maintenance match program agreement between the Macomb County Public Works Commissioner and the City of Sterling Heights for the restoration and repair of 250 lineal feet of the Moore Drain #252 and authorize the City Manager to execute the agreement on behalf of the City. Regular City Council Meeting Tuesday, August 15, 2023 Page 15 G. RESOLVED, to: 1. Purchase one hundred (100) OneTest kids and ancillary services and supplies from 20/20 Gene Systems, Inc., 15810 Gaither Drive, Suite 235, Gaithersburg, MD 20877, at a total cost of $14,975; and 2. Authorize a budget amendment in the amount of $14,975 from General Fund reserves. H. RESOLVED, to purchase five (5) Motorola APX 6000 800 MHz portable radios and two (2) APX6500 mobile radios, with extended product warranties, accessories, and installation services from Motorola Solutions, Inc., 1301 E. Algonquin Road, Schaumburg, IL 60196, at discounted pricing available through the State of Michigan’s MiDEAL cooperative purchasing program, contract #190000001544, at a total cost of $44,414.51. I. RESOLVED, to: 1. Purchase one (1) 2025 Freightliner single-axle chassis from Wolverine Freightliner – Eastside, Inc., 107 S. Groesbeck, Mt. Clemens, MI 48043, at pricing available through the City of Rochester Hills cooperative request for proposals, RFP-RH-20- 023, in the amount of $110,650; and 2. Purchase one (1) Crysteel dump body, with Monroe reversible plow, underbody scraper, slide-in salt spreader box, and accessories, from Truck & Trailer Specialties, Inc., 900 Grand Oaks Drive, Howell, MI 48843 at pricing available through the City of Rochester Hills cooperative request for proposals, RFP-RH-20- 023, in the amount of $132,338. J. RESOLVED, to purchase Unique Chat fully managed, live on-line chat services from Unique Management Services, LLC, 119 E. Maple Street, Jeffersonville, IN 47130, for a two-year period at a total cost of $12,852. K. RESOLVED, to adopt the resolution approving a Participation Agreement in the master settlement of claims against Walgreens and addendums to the Michigan State – Subdivision Agreements for prior settlements of national prescription opiate litigation and authorize the City Manager to sign all authorized documents on behalf of the City. Yes: All. The motion carried (7/0). 8. CONSIDERATION A. Mayor Taylor stated this is to adopt a resolution establishing the Lakeside Corridor Improvement Authority, designating the boundaries of the Lakeside Development Area, and fixing the number of members on the Corridor Improvement Authority Board. He invited Senior Economic Development Advisor Luke Bonner to give a presentation. Senior Economic Development Advisor Luke Bonner explained this is a continuation from the last meeting, and this Resolution establishes the district boundaries that were discussed at length at that time. He showed the district boundaries, highlighted on the aerial. It encompasses Lakeside, which is anticipated to go through a very substantial redevelopment project, and that district was expanded outside of Lakeside proper to include other properties. Regular City Council Meeting Tuesday, August 15, 2023 Page 16 This will result in a larger area with consistent landscaping, signage, materials, etc., and they could make more improvements in that district as they go forward. He informed that the Resolution creates the Corridor Improvement Authority and Corridor Improvement Board, and they are recommending a seven-person board, one a Mayor designee, and most of the remaining six members would have a business or ownership interest in the district. One member must be a resident of the district or live within a half- mile of the district boundaries, and the Board’s purpose is to create a development plan, including proposed improvements throughout the district, and lend guidance on a tax finance plan, which is a way to fund those improvements. He offered to answer questions. Mayor Taylor opened the floor for public comments, but no one spoke. Moved by Ziarko, seconded by Schmidt, RESOLVED, to adopt the resolution establishing the Lakeside Corridor Improvement Authority, designating the boundaries of the Lakeside Development Area, and fixing the number of members on the board. Councilwoman Ziarko asked for the number of Board members there will be, including the city representative. Mr. Kaszubski replied to inquiry the number will be seven total, noting they like to have odd numbers on their boards to avoid deadlocks. He confirmed that the City representative will have voting rights. Councilwoman Ziarko inquired as to whether they can expand to nine members in the future if needed. Mr. Kaszubski replied affirmatively. Councilwoman Ziarko stated she is happy with the way this is presented. They want to make sure this property is redeveloped and does not remain an empty 130-acre parcel. She recently visited a multi-use development in Beechwood, Ohio, called “Pinecrest”. She felt there are a lot of good ideas they have used, and they received a National Gold Award for its development, which included condominiums, apartments, restaurants, as well as a medical facility, movie theater, ice cream parlor, and high-end retail. Regular City Council Meeting Tuesday, August 15, 2023 Page 17 Councilwoman Schmidt stated this has been thoroughly discussed, and she is very satisfied with this step, which is one of many to come in this entire process. She cautioned patience and perseverance will get them through this project together, and she is excited to see it going forward. Mayor Pro-Tem Sierawski stated she is excited, even though she grew up in the era of malls and absolutely loved them. She explained it is no longer a viable use of property and does not serve how people shop, so it is not sustainable. They need to find the best use of the land, and this is the first step, so it is still flexible. They need to find the best use of the land, how they shop, and to make it work for the community, and she added it will impact the surrounding area, as well as the entire region. Councilman Yanez stated he is not supporting the footprint of this Corridor Improvement Authority district. He expressed concern about the tax capture. He indicated he was in full support when this started and it was going to include the mall only, but now that they have included additional areas, those properties will generate tax revenue that will be captured within the Authority and will not go to new police cars, fire trucks, sidewalks, etc., other than what is within the boundaries. He stated he will not support the footprint of this corridor, believing it should have been limited to just the ring road, so he will be voting no. Councilwoman Koski stated she has concerns about the boundaries. She questioned Mr. Bonner about the purpose of expanding the boundaries to capture taxes past the ring road. She understood that the mall was supposed to support itself, so she could not understand why they are now proposing to go outside of that ring road, especially across Schoenherr. Mr. Bonner replied the purpose was to create a bigger district to capture taxes outside of the Lakeside property to spend outside of the Lakeside property. He explained it is almost like two projects, with Lakeside being a huge project, and everything outside of Lakeside is included so that Lakeside does not exist “as an island unto itself”. He added that, from a marketing standpoint, they Regular City Council Meeting Tuesday, August 15, 2023 Page 18 can create a theme throughout a more inclusive area, so capturing taxes outside of the Lakeside Mall development would be intended to be spent outside of the Lakeside Mall development. Councilwoman Koski questioned whether what is collected with Lakeside Mall is what is going to be used to pay back the bond. She questioned confirmation that what is collected from the properties outside the ring road will not be used to pay back the bond, but rather to develop that area. Mr. Bonner replied that is the intent. He informed that, on the Lakeside Mall projections they discussed last November, they are anticipating an excess of taxes captured on the mall project itself, so there would be an excess of TIF capture coming from that project that could be spent outside Lakeside Mall as well. Councilwoman Koski understood the monies captured are supposed to go to paying back the bond. Mr. Bonner stated it is correct that the Lakeside Mall portion can stand on its own. When they went through the projections last November, they projected that Lakeside would pay for itself, and there would be an excess. With the larger district, the excess Lakeside would produce after the bonds are paid for could be spent in the other parts of the district. Councilwoman Koski questioned whether any excess money would be used toward paying the bond back. Mr. Bonner replied that it could be used for that, but they have a lot of flexibility. He replied to further inquiry that there is interest on the bond, but he prefers not to talk about the bonding portion because it is not his job to know and understand how the bonds function. Councilwoman Koski would like the mall project to be limited to the mall. She does not believe the taxes captured from the outside ring and across Schoenherr should be combined with Lakeside. She added the less money they would have to borrow, the happier she would be. She has difficulty in Regular City Council Meeting Tuesday, August 15, 2023 Page 19 supporting this project the way it is being proposed, so she will continue to vote no. Councilman Radtke supports a Downtown Development Authority (DDA) district, and it is disappointing to him that this is a Corridor Improvement Authority (CIA), although he felt that opportunity has passed. He is sad that Island Park will not be improved through a DDA, and he commented that the Council missed out on an opportunity to improve the area. He stated because it is now at this point, he will be voting in favor of it. He inquired to the Finance & Budget Director Jennifer Varney as to whether the interest would be an average of 1.5 percent, but acknowledged those are the Mound Road bonds. Finance & Budget Director Jennifer Varney clarified the Mound Road bonds and the bonds they issued for the DPW building were both under two percent, which were very good rates. She hoped they will have good rates, but now rates are closer to 3.5 percent to 4.0 percent. She noted a $15 million bond is at 3.85 percent. She replied to further inquiry that the City’s credit rating is currently AA+. Councilman Radtke questioned confirmation that investors do not have to pay taxes on the bonds. Ms. Varney replied that is correct. She compared the 3.85 percent interest to current mortgage rates or car loan rates, noting it is still a very good interest rate; however, compared to the interest rates they were getting a couple of years ago, it does not seem as good. She assured that, historically, an interest rate of 3.85 is still excellent. The developers were interested in the City bonding because the City can get a much better rate than the developers, which equates to millions of dollars of interest when looking at $45 million. Councilman Radtke stated he will be voting yes on this to get the project moving, although he felt they are missing an opportunity not to opt for a DDA District. He understands that the limitations of the CIA will not allow the addition of Island Park or other things they should. Regular City Council Meeting Tuesday, August 15, 2023 Page 20 Councilwoman Ziarko reiterated they are not going to see a line item for these bonds on their tax bills because they will be paid off through the TIF (Tax Increment Financing). She stressed this will be an economic driver for the entire region, and the amount of money will be brought in not only to the City of Sterling Heights, but also the neighboring communities. It is a huge project, and she stressed they need to do it right the first time. Mayor Tayor emphasized the residents will have no obligation to pay any of this bond back, with no additional taxes on the property taxes to pay back this bond. The bond will be entirely paid back by the Lakeside Mall project; however, if they do not generate enough TIF revenue to pay back the bond, they will have a Special Assessment on their property taxes. People who do not own property inside this district will not be paying the bonding back. He pointed out this is a great benefit to their residents that the City can use the leverage they have in order to bond it, but it is structured in a way that the General Fund and taxpayers who live in Sterling Heights or have a business in the City of Sterling Heights will benefit from this without having to pay a single penny of it. He indicated it will be up to the Board and the developers as to whether they want to pay more money towards the bonding or more towards improvements in the district. He is in favor of the larger district because the Lakeside circle alone is configured like an island unto itself, being cut off from everything else. He commented that going down go Canal makes sense, and if they include the east side of Schoenherr, they might as well include the west side of Schoenherr. He felt this will be a focal point in Macomb County and the metro Detroit region in the next fifteen to twenty years, so he is in favor of it. He questioned when the TIF will go into effect. Mr. Bonner replied that the TIF has to be adopted by the Corridor Improvement Authority board and recommended to Council for review and approval. It is not until that time when the TIF capture clock starts. He replied to further inquiry it is difficult to estimate a date, but he suggested it may be 2024 when they will start the process of developing the TIF plan. If it is Regular City Council Meeting Tuesday, August 15, 2023 Page 21 approved by the end of December 2024, the TIF would start the years going forward from that. Roll Call Vote: Yes: Ziarko, Radtke, Schmidt, Sierawski, Taylor. No: Yanez, Koski. Yes: All. The motion carried (5/2). B. Mayor Taylor stated this is to consider appointments to the City of Sterling Heights Boards and Commissions. Sustainability Commission Mayor Taylor stated this is an open seat for City Council’s appointment to a partial term ending June 30, 2025. Moved by Radtke, seconded by Taylor, RESOLVED, to appoint Riley Maher to the Sustainability Commission to a term ending June 30, 2025, subject to the appointee meeting the qualifications set forth in Charter §4.03 and taking the oath of office within two weeks. Councilman Radtke stated the candidate has a lot of skills as a data scientist for DTE, and he cares about sustainability. He commented that he will be a great addition to the Sustainability Commission. Councilman Yanez noted that he has known Mr. Maher since high school, and he is an excellent person to be appointed to the Sustainability Commission. He was a graduate of University of Michigan and Ross Business School, works at DTE, is a gardener and well-rounded. He is detail- oriented and will be a great asset to the City. Mayor Taylor agreed he will be a great fit and is very enthusiastic, wanting to serve his city. Yes: All. The motion carried (7/0). Citizens Advisory Committee – CDBG Mayor Taylor stated this is an open seat for partial term ending June 30, 2024. Moved by Sierawski, seconded by Schmidt, RESOLVED, to appoint Naketa Jones to the Citizens Advisory Committee – CDBG to a term ending June 30, 2024, 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 (7/0). Economic Development Corporation/Brownfield Authority Regular City Council Meeting Tuesday, August 15, 2023 Page 22 Mayor Taylor stated this is an open seat that is a mayoral appointment to a partial term ending June 30, 2026. He recommended Ms. Laurel Johnson for this position. Moved by Schmidt, seconded by Radtke, RESOLVED, to appoint Laurel Johnson to the Economic Development Corporation/Brownfield Authority to a term ending June 30, 2026, 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 (7/0). Moved by Radtke, seconded by Ziarko, RESOLVED, to postpone the appointments to the Economic Development Corporation/Brownfield Authority (2025), Elected Officials’ Compensation Commission (2025 & 2027) to the September 19, 2023 regular City Council meeting. Yes: All. The motion carried (7/0). 9. COMMUNICATIONS FROM CITIZENS Mayor Taylor opened the floor for public comments. • Nathan Mohlman – lives on Utica Road; agreed with Councilwoman Ziarko that Beechwood, Ohio is a beautiful town; talked about “Beltway” in Atlanta, where people can ride bikes for miles, with many small retail businesses and restaurants along this trail; concerned about large number of semi-trucks using Utica Road, especially those who are “motor-braking”; would like an ordinance to prohibit it; complained about dumpsters being emptied at 4:30 am at the old DPW facility on Clinton River Road, making a lot of noise at that time of the morning; would like to see high-end senior living as part of the new Lakeside development. Mayor Taylor suggested Mr. Mohlman leave his contact information with the City Clerk, and someone will get back with him to talk about his concerns. • Roger Goodrich – resident of Sterling Heights; spoke on behalf of five people who have criminal complaints on file with the State regarding public records; provided details of the issue; talked about several news stories with regard to the 2020 election. • Ronnie Dempsko – resident of Sterling Heights for forty years and current resident in Pineridge of Plumbrook; expressed opposition to the ordinance recently adopted which charges $800 for non- emergency medical calls at independent living facilities, which have no medical personnel to assist; concerned this is age discrimination. • Scott Aughney – resident of Jackson, Michigan; stated he is a whistleblower and an independent election investigator and organizer of Citizens For Electoral Justice, a 501c4 organization based in Michigan Center, Michigan; also one of the organizers of Locus Standi Criminal Investigations, which is active in twenty counties in the State of Michigan; talked about investigations of public officials in Lansing; referred to complaints that were filed through Sterling Heights Police Department, and a subsequent letter received from Sterling Heights Police Department indicating complaints should go to the State Attorney General; he disagreed with that and cited a law regarding the Regular City Council Meeting Tuesday, August 15, 2023 Page 23 duties of police officers; expressed concern that Attorney General cannot investigate these complaints as it is a conflict of interest. • Unidentified woman – suggested having a pickleball court in the new Lakeside redevelopment; complained about Spencer’s, a store currently in the Lakeside Mall that is selling x-rated items, and she questioned whether that is being investigated. • Ken Nelson – resident on Firesteel, Sterling Heights; understood that a resident sent emails to the Mayor and City Council members about impervious surface driveways; stressed that when residents have questions and they cannot attend the meeting, those questions deserve to be answered; commented that City Council needs to listen to the residents. • Roger McCauley – resident of Chesterfield Township; talked about checking voting records with the poll books at the local Clerk’s office, which were correct, then compared that to the State’s record, which differed; concerned about this and questioned whether records are being changed at state level; urged everyone to do their own research on this to keep elections free and fair. • Carol Reed – 23344 Almond, Eastpointe, Michigan; concerned about fraudulent voting; commented about the “The Halo” on Hall Road. • Mark Hemerling – concerned about respect, or lack of respect, from Mayor to the residents; emphasized they need free, fair elections to remain a free country. 10. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Vanderpool stated he had nothing further this evening. Councilwoman Ziarko thanked the residents for coming to the meeting tonight, and everyone has a right to their opinions. She urged everyone to look at data objectively. She wished a happy thirty-sixth wedding anniversary to her husband as they celebrate today. She stated they have lived in Sterling Heights for thirty of those thirty-six years. She thanked the citizens and residents, her friends, and colleagues for the best thirty years of her life, and she appreciates their support. She looks forward to the next thirty years. Mayor Taylor wished congratulations to Mayor Pro-Tem Sierawski, and her husband, Judge Sierawski, on their anniversary. Councilwoman Ziarko questioned City Clerk Melanie Ryska as to whether there is a way in which they can educate people on what happens to a ballot. She felt it would be helpful for people to know what happens to their ballot, whether they receive it at the voting poll, or receive an absentee ballot and send it in. She suggested a video or tutorial would be helpful to explain the Regular City Council Meeting Tuesday, August 15, 2023 Page 24 process they use. She also questioned whether the voting record follows the voter if they move to another community. Clerk Melanie Ryska assured they are planning an extensive voter education campaign this fall through winter, and it will explain some of their new voting options. The life of a ballot will be a part of that. She agreed the video is a good idea and something they may be able to do. With regard to voter records, she clarified a voting record follows that voter, so if that voter moves out of the city, their voting record will stay with them in whatever community they move. Councilwoman Ziarko stressed that she takes pride in their Elections Division in this City, she has sat on the sub-committee for Elections for the State of Michigan, and she knows Clerk Ryska did the same thing. She mentioned that some of their suggestions were actually voted into law by the legislature, so she is confident they do a good job here in Sterling Heights. She understands that many of the residents who spoke during Public Comment this evening have concerns about the election process, but she assured that anyone voting in Sterling Heights can be confident there is nothing wrong or fraudulent with the elections. Mayor Taylor appreciated the residents who are passionate about the election issue, and the City will handle it the way they are required to under the law. He stated there is no evidence of changing of records. He does not know what the issue is, because after three years, there have been hundreds of cases filed, but all were dismissed because of lack of proof of any fraud. He emphasized they are proud of the work they do in Sterling Heights, and very proud of the professional City Clerk they have. 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 two items for Closed Session this evening. 14. ADJOURN Regular City Council Meeting Tuesday, August 15, 2023 Page 25 Moved by Ziarko, seconded by Radtke, RESOLVED, to adjourn the meeting and recess into Closed Session. Mayor Taylor announced that they may or may not come out of Closed Session. Roll Call Vote: Yes: Ziarko, Koski, Radtke, Schmidt, Sierawski, Taylor, Yanez. No: None. The motion carried (7/0). The meeting adjourned and recessed into Closed Session at 9:11 p.m. MELANIE D. RYSKA, City Clerk