City Council

CITY OF STERLING HEIGHTS MINUTES OF REGULAR MEETING OF CITY COUNCIL TUESDAY, DECEMBER 2, 2025 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 Chelsea May, Deputy City Clerk, gave the Invocation. 3. Council Members present at roll call: Robert Mijac, 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; Chelsea May, Deputy City Clerk; Carol Sobosky, Recording Secretary. Mayor Taylor explained that Mayor Pro-Tem Sierawski is not present this evening because her mother-in-law recently passed away. On behalf of City Council, he extended condolences to the Sierawski family, specifically to Judge Steven Sierawski from 41-A District Court, on the loss of his mother. He wished their best to the Sierawski family, adding that Mayor Pro-Tem Sierawski will be at the City Council meeting in two weeks. 4. APPROVAL OF AGENDA Moved by Ziarko, seconded by Schmidt, RESOLVED, to approve the agenda as presented. Councilman Yanez requested that Consent Agenda Item 8-D be moved to Consideration Item 9-B. Mayor Taylor confirmed that Consent Agenda Item 8-D will be moved to Consideration Item 9-B. Regular City Council Meeting Tuesday, December 2, 2025 Page 2 Yes: All. The motion carried (6/0). 5. REPORT FROM CITY MANAGER Mr. Vanderpool reminded everyone that this Saturday, December 6th, from 5:30 p.m. until 8:30 p.m., the City will be celebrating Sterling Christmas across the street at Dodge Park (and including the Upton House). He added that it is one of the City’s most popular events, second only to Sterlingfest. Thousands of people generally attend it, and although the weather forecast calls for cold weather, it will be perfect for the event. He added they look forward to seeing everyone there. Mr. Vanderpool explained that, in addition to the usual festivities of caroling, lighting of the tree, horse-drawn wagon rides, ice skating, the trackless train, and more, they ask that individuals bring donations of non-perishable food in honor of the DPW Ken Stempowski Memorial Food Drive to benefit community food banks in Macomb County. He requested that those interested bring what they can, and he added they look forward to seeing everyone at this event. Mr. Vanderpool reminded that the City is now entering their third year of the Look No Further campaign. They started this effort as part of Visioning 2030 and 2040 Plans, and it is an effort to celebrate all that is going on in Sterling Heights, telling the Sterling Heights success story outside of Sterling Heights. He pointed out that residents and businesses in Sterling Heights are already aware of the success, but it is part of their prosperity agenda to make sure the entire region is aware of all that is going on in Sterling Heights. He stressed this is important for a number of reasons, noting that Sterling Heights is one of the few large communities in the Regular City Council Meeting Tuesday, December 2, 2025 Page 3 state that continues to grow in population, and growing cities are thriving cities. For Sterling Heights to achieve the vision they have set forth for 2030 and 2040, they need to continue to grow the population. This Look No Further campaign is an effort to make sure the entire region, and state knows what is going on in Sterling Heights, and those considering a move in the next few years know about not only the great school systems, but also the great quality of life amenities, city services, affordability, etc. He invited Brandon Chesnutt of Identity, PR, to provide an update on this campaign and to talk about the next phase. Brandon Chesnutt, a partner with Identity PR, stated he is excited to be back here to provide a brief update on the Looking No Further campaign as they continue their mission to communicate why the City of Sterling Heights is a great place to find a home, raise a family, build a scale of business, and beyond. He emphasized they have been very busy with Phase II, and he talked about their important storytelling through media. They have continued to advertise milestones over the past several weeks and months, citing events such as the onsite, all-day coverage from Sterlingfest involving WDIV, continued promotion of their great Economic Development programs in Crain’s Detroit Business and WDIV, the amplification of the programs they continue to roll out to make the City safe and welcoming, as well as their constant advertising that targets residents and business owners in different communities throughout the state. Mr. Chesnutt provided a quick update on where they are at today and what they are looking to accomplish heading into the next phase of this campaign. He talked Regular City Council Meeting Tuesday, December 2, 2025 Page 4 about Phase I where they were looking for ways to generate the biggest headlines possible and have the best stories. They sought more voices, more partners, and individuals to bring into this effort to tell everyone what they are and what they stand for. They were able to bring in the Sterling Heights Assembly Plant (SHAP) and the Chaldean Community Foundation (CCF) to use their time to help the City communicate their key messages. They also look for the most creative, efficient, and cost-saving ways to deploy their dedicated advertising dollars through a wide variety of campaigns across regional advertising. They are also looking for ways to bring this out from just the keyboard. People are not only seeing this campaign, but they are feeling it, and it is what they experience in real life. They build on image and talk to people everyday who have asked or opted to receive communications about the City. This campaign is talking to people who have not necessarily opted in, and they do not know all about the City’s story. He talked about the types of advertising they use, noting they have been able to use the kind of advertising that used to cost a significant amount, and they have been able to scale up for a very low cost. Mr. Chesnutt talked about Phase II, which was bringing in the right message and amplifying it out to those who are looking for their next place to live or move. He explained they have four residents and four stories that are part of the next phase of the campaign that will be rolling out in the next few weeks. He talked a little about these four residents and the messages they have to convey. They have identified there are 800,000 people in Metro Detroit, based on data from Google and other tools, who are actively looking for information Regular City Council Meeting Tuesday, December 2, 2025 Page 5 related to mortgages or moving. He stressed they want to look at ways to make Sterling Heights a top consideration for those people. Mr. Chessnut highlighted some very important objectives they want to accomplish in this next phase. They want to continue to capture and elevate the great stories, as well as highlight three additional campaigns they will be rolling out this year. People have indicated they want visibility for their programs and businesses, and they have had people who have asked to be involved because it is exciting. They are laser focused on surveying and measuring the effectiveness of the campaign. Similar to surveys sent out to the community members about the effectiveness of city services, he questioned what it they could ask the community members what they feel about their brand as a city, and their feelings about this campaign. They have identified two strategic partners in this particular effort who will help them measure the effectiveness of the campaign and get some insights. They will continue to maximize their messaging over a variety of media, from the City magazine to in-market billboards and beyond. Mr. Chesnutt concluded his presentation with a sneak peak of the video rolling out over the next few weeks, featuring the four Sterling Heights residents and the four stories he referred to earlier in his presentation. Mr. Vanderpool stated this campaign has proven to be very successful, and they are looking forward to the next phase. He thanked Mr. Chesnutt, along with Community Relations Director Melanie Davis and her team for helping to Regular City Council Meeting Tuesday, December 2, 2025 Page 6 coordinate the campaign. He commended them for their hard work and a great job in this effort. Mr. Vanderpool stated the next item on his report is highlighting a very special program in the library, and he invited Librarians Lindsey Block and Jessica DeGrieck to give the presentation. Librarian Jessica DeGrieck stated a very rewarding aspect of their job is outreach, in order to make the library and its resources more accessible to everyone in the community. Librarian Lindsey Block talked about the two sides of outreach, with the first part focusing on bringing library materials directly to their patrons, especially those who, for whatever reason, may not be able to visit the library in person. This can involve attending events like Dodge Park Thursdays or the Cultural Exchange to provide library information for attendees. They can also drive through the City in their new mobile library to provide programming information and pass out free books. They also visit classrooms to introduce kids to the library for the first time, and they visit assisted living facilities to let those residents know how the library can serve them from afar. It most frequently involves offering weekly home delivery service, where residents with a Sterling Heights library card can call the library and request material pickups and drop-offs straight to their door. They have the capacity to handle up to twelve deliveries each week, and they offer homebound services, which involves once-a-month, regularly scheduled delivery for patrons who are completely homebound and cannot visit the library to get a Regular City Council Meeting Tuesday, December 2, 2025 Page 7 card. They do not have to schedule deliveries or make choices on what they want to receive, but they tell the library their favorite authors and genres, and their dedicated librarian will pull books to suit them. They partner with assisted living facilities in the City to leave a selection of materials with them for six months at a time, which provides their residents with access to a variety of books beyond what the facility could provide them with on their own. Ms. DeGrieck explained the second part of outreach involves creating partnerships with local organizations and it is designed to help them further their mission of encouraging innovative living through literacy, discovery, and community. She explained they have partnered with organizations such as Vibe Credit Union, Clinton Metro Parks, and Uniquely You to sponsor and create various programs. Some of the City departments have volunteered to either host or collaborate in programming efforts with the library. Other community partners have assisted by donating their time or money to help these programs thrive. They have expanded their presence in the community, with outreach visits having increased by just over 95 percent in 2025. The results have come back in positive feedback as well as increased program attendance and increased usage of their library resources. She emphasized their appreciation of everyone who has worked with them to bring free programming and resources to everyone in the community. She also extended a special thank you to the Friends of the Library group who provide one hundred percent of their programming budget, as well as free books and other materials they can pass out during these outreach events. Regular City Council Meeting Tuesday, December 2, 2025 Page 8 Ms. Block invited anyone interested to come into the library to see what they do in person, adding the library staff would love to take them around. Mr. Vanderpool concluded his report by stating that the library is part of the City’s success story and is a big part of their quality of life, and they are looking forward to the expansion of the library with the new library satellite at Red Run Park that will be under construction next year. He thanked all of the library employees, referring to the library as their “happy place.” He stressed the employees are amazing, so helpful, and he commended them on their excellent customer service. Mr. Vanderpool stated this concludes his report. 6. PRESENTATIONS A. Mayor Taylor stated this is a Nice Neighbor Award Presentation. He invited Community Relations Director Melanie Davis to give the presentation. Community Relations Director Melanie Davis is confident everyone is aware they have had a Nice Neighbor program for some time, but the City’s commUNITY Alliance recently met and wanted to get additional nominations for this award in order to showcase all of the great nice neighbors in Sterling Heights. Their goal is to try to get at least one Nice Neighbor presentation at most City Council meetings. She explained they have two of these presentations this evening, and the first award tonight goes to Helga Babich, who noticed that her neighbor had newspapers in his driveway and a package on his porch, which was unusual for him. She contacted another neighbor, Manny Gonzolez, asking him to check in. They called the police for a welfare check and contacted another neighbor who Regular City Council Meeting Tuesday, December 2, 2025 Page 9 had been given a house key to that gentleman’s house. When they called out, they heard a faint reply, only to find out the homeowner had been stuck in bed for over two days due to a medical emergency. Helga and her neighbors called emergency services again, an ambulance was dispatched, the first responders arrived, and the case was handed over to them so that homeowner could receive the medical attention he needed. Ms. Davis stated that Manny has nominated Helga for her efforts to paying attention to the small things and for taking action so they could help their neighbor. She stressed that many people from multiple homes coming together to look out for one another and keeping each other safe is the ideal image of community, and what Helga and her neighbors did is a shining example of how powerful people can be when they come together. Residents are a critical component of keeping Sterling Heights the safest big city in Michigan. Ms. Davis invited Helga, the award recipient, and Manny, the neighbor who nominated her, so she could present Helga with the Nice Neighbor Award. Manny added that Helga deserves all of the credit. B. Ms. Davis explained the second Nice Neighbor Award they have for tonight is being presented to Megan Turner of Old House Family Restaurant. She was previously a waitress at this restaurant and took ownership of the establishment in 2021. She maintains Old House’s family feeling, where they prioritize connection and flavor over flashy signage. She was nominated by Al Andreucci for the first-name basis level of care she and her staff bring to the restaurant, as Regular City Council Meeting Tuesday, December 2, 2025 Page 10 well as their charitable efforts for collecting coats each winter. Al visits the Old House weekly to support them, and he is grateful the restaurant made it through Covid, which was a trying time for many of the local restaurants. Ms. Davis explained the restaurant’s cheeky slogan, “Good Food, Bad Attitude,” but Megan has said that is a humorous tag line, and that they truly have the best attitudes. She has indicated that the playful banter creates a very close, family-like bond, and she and her staff are an example of respecting the past, while also embracing the future and building bonds that fortify their City and bring people together. Ms. Davis invited Megan, the award recipient, and Al, the individual who nominated her, so she could present Megan with the Nice Neighbor Award. Mayor Taylor stated he is appreciative of the two Nice Neighbor Awards this evening, and he recommended people visit the Old House Family Restaurant if they have not yet been there. He appreciates the great work their residents, business owners, and City Hall staff members put into this to make this a great community and improve quality of life. C. Mayor Taylor stated this is to receive the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025. He invited Nick Makie, Assistant Finance & Budget Director, and Daniel Merritt, Partner, Rehmann Robson, LLC, to give the presentation. Nick Makie, Assistant Finance & Budget Director, stated he is happy to be here tonight to present the results of the 2025 Financial Audit, noting that each year, independent auditors review their financial statements and their accounting Regular City Council Meeting Tuesday, December 2, 2025 Page 11 procedures. It is a very time-consuming and detailed process that involves the cooperation of many employees throughout the organization. He thanked everyone involved, especially their entire finance team, who once again did an excellent job. The 200-page report was supplied to City Council and is also available on the City’s website. Mr. Makie summarized the financial results, explaining that the net position of the City, which represents total assets minus total liabilities, has increased by $42.7 million from the prior year, with most of this increase in governmental activities and is due to the large investment the City has been making into infrastructure, including roads and facilities. General Fund revenue totaled $136.8 million, and General Fund expenditures were $134.7 million, resulting in the addition of $2.1 million to General Fund reserves. This increase in General Fund reserves includes carry-forward funding for projects not yet completed by year end, as well as approximately $900,000 in unspendable temporary investment gains. Their General Fund balance is $43 million, or 31.9 percent, of annual General Fund expenditures. They are projecting a Use of Fund balance of $1.3 million in 2026, bringing their total reserves to $41.7 million, which is about 31.3 percent of expenditures. Mr. Makie explained that General Fund revenues were 8 percent above budgeted targets and were $6.8 million more than prior year revenues, which is an increase of 5.3 percent compared to last year. He outlined the several items attributed to this increase, including an additional $4.3 million generated in tax revenue as a Regular City Council Meeting Tuesday, December 2, 2025 Page 12 result in property value increases citywide, a new accounting pronouncement implemented in the current fiscal year requiring them to record long-term liabilities for subscription-based IT agreements, which added $1.5 million of revenue and offset $1.5 million in expense being recorded in the General Fund. He explained that, while it is neutral to fund balance, it makes their comparables and budget to actuals appear misleading. They also received a $500,000 increase in tier three property tax reimbursement and a $350,000 increase year-over-year in revenue sharing and an increase in interest revenue of $250,000. He noted that the total expenditures in the General Fund were in line with budgeted amounts and the small overage is directly related to the new accounting standard previously mentioned. Mr. Makie explained that expenditures increased by a net amount of $10 million, or 8 percent, from the previous year, which also included a $5.9 million increase in personnel costs due to contractual wage adjustments, step increases, and added positions. He added that $1.5 million was related to the previously mentioned accounting pronouncement, $1 million related to a grant-funded Lakeside Mall redevelopment expenditure, and $450,000 in increased contractual services. Mr. Makie talked about the major and local roads, noting their revenue totaled $24.5 million in 2025, and revenue from the State of Michigan (Act 51) totaled $16.4 million, an increase of approximately $740,000 year-over-year. The Safe Streets Millage provided $4.3 million for neighborhood road improvements, which is up about $210,000 year-over-year. He added that other sources, Regular City Council Meeting Tuesday, December 2, 2025 Page 13 including federal grant revenue, reimbursements, and special assessments, contributed $1.2 million in the current year, which is an increase of $830,000 year- over-year. The General Fund also provided an additional $1 million for major roads this year. Mr. Makie explained that investment in major roads, including bonded funds, totaled $9.9 million in 2025, and in 2026, budgeted expenditures are $22.1 million and include some carry-forward projects initially budgeted in fiscal year 2025, such as Clinton River Road. He mentioned some of the current year projects, including Moravian Drive resurfacing from Schoenherr to Hayes, as well as the 18 Mile Road bridge over the Plumbrook drain. This year’s neighborhood road projects totaled $7.3 million, and there will be another $7.2 million investment in 2026. Expenditures in their Capital Projects fund totaled $8.2 million in 2025, which included $3.6 million in facility and land improvements, $1.1 million in drain improvements, $1.4 million in equipment, and $1.9 million in vehicles. Investments in equipment and facilities in the amount of $15.3 million are in the 2026 budget. Mr. Makie stated the American Rescue Plan Act funding continues to be spent according to their ARPA Action Plan. The current year expenditures of $8 million consisted of $2.2 million on the ITC Corridor improvements, $4.4 million on road projects and trail enhancements, including the Nature Center bridge and the Lakeside Island bridge, and $1.1 million on the construction of the Community Garden. He advised that the balance of their ARPA funding is expected to be spent in 2026. Regular City Council Meeting Tuesday, December 2, 2025 Page 14 Mr. Makie talked about the Water and Sewer fund, which had an operational gain of $1.1 million in the current fiscal year. Fiscal Year 2026 is also projected to include an increase in reserves. He addressed the City’s retirement funds, noting that the Retiree Medical Plan (OPED0 has increased its funding level 3.7 percent from last year, making it 82.8 percent funded. The funding level of the General Employee Pension System increased to 75.4 percent funding; however, he reminded that both of those plans are now closed to new hires. The funding level of the Police and Fire Pension Plan increased to 64.4 percent funded and is the only plan currently open to new hires. The City prioritizes funding of all of its retirement plans by making required contributions and maintaining appropriate actuarial assumptions for the plans. Mr. Makie stated the City continues to prioritize investment in construction and public facilities, which at times require the City to issue bonds to fund these projects. He pointed out that most city bonds have a dedicated funding source, such as Act 51 revenue, special assessments, or utility revenue, there are limits to the amount of general obligation debt a city can incur. He pointed out on a chart that the City’s general obligations are only at 17.9 percent of the legal limit for Fiscal Year 2025, which is well within their manageable debt service limits, and is less than the percentage in the prior year. Mr. Makie concluded that this presentation shows the City’s budgeting and long- term financial planning are on target. They continue to add to General Fund reserves, invest in roads and community infrastructure, all accomplished while still Regular City Council Meeting Tuesday, December 2, 2025 Page 15 maintaining the lowest taxes paid per resident when compared to the ten largest Michigan cities by population. Sterling Heights also continues to have one of the lowest millage rates in Macomb County. He added that the City has once again been awarded the Government Finance Officer’s Association Certificate of Excellence in Financial Reporting, as well as the Distinguished Budget Award, with these awards being presented to the City for 36 and 37 years, respectively, reflecting the City’s dedication to excellence in financial reporting. He introduced Dan Merritt, principal at Rehmann Robson, LLC, to continue with the presentation. Daniel Merritt, Partner, Rehmann Robson, LLC, principal at Rehmann Robson, LLC, stated that this is their second year as the City’s independent auditor. He explained that municipalities in the State of Michigan are required to have independent financial statement audits since Public Act 2 of 1968, and their firm has been doing local government audits since that time. They do approximately 125 local government audits each year and dedicate about 200,000 client service hours to public sector organizations. Mr. Merritt explained the report is 214 pages, and this audit requires additional time and effort from the Finance Department, detailing some of what is required. He explained that an audit is a partnership between the City’s Finance Department and the auditing team, and it takes his team approximately 300 to 500 hours to prepare. He added it takes the City’s Finance Department about two to three times that many hours to prepare for the audit, answer all of their questions, and provide the support they need. He extended kudos to Mr. Makie and the entire Finance Regular City Council Meeting Tuesday, December 2, 2025 Page 16 Department on making sure that the annual audit is completed on time, noting they actually completed it two weeks earlier than last year. Mr. Merritt explained they are giving an unmodified opinion on the City’s financial statements, which is also called a “clean opinion.” He further explained that an unmodified opinion with no material audit adjustments and no findings is perhaps a clean opinion, or an “A+ audit.” Mr. Merritt highlighted some key operating indicators, such as good results in its balance sheet, with growth in assets due to positive fund operating results and reduction of liabilities through regular payment of debt as well as increased funding of pension and OPED liabilities. There is growth in population and growth in property values, resulting in growth in property tax revenue, which is good and maintains a sustainable General Fund balance. They also have good positive investment income for the fiscal year. Mr. Merritt explained that the General Fund balance has increased by $2.1 million, and the Government Finance Officers’ Association has indicated municipalities should have about two months of fund balance, or between 10 percent to 15 percent fund balance coverage ratio. He emphasized the City has been above that for a number of years. There have also been significant investments in infrastructure by the City, and it is good to see the City continuing investment in these capital assets. All of the City’s pension and OPED defined benefit plans increased their funded status and percentage this year, and all of the City’s plans Regular City Council Meeting Tuesday, December 2, 2025 Page 17 would meet the State’s threshold for being a funded plan, noting the threshold is basically 60 percent for a pension plan or 40 percent for an OPED plan. Mr. Merrit explained that as part of the annual audit, most cities are required to have what is called a single audit, which is a unified audit of all federal awards, and he noted the City’s single audit is currently in progress. The City had about $10.5 million of federal awards during Fiscal Year 2025. He stated the independent auditors are required to do these audits under the rules issued by the Office of Management and Budget at the federal government level, and these rules were just issued on November 25th. Mr. Merritt talked about upcoming accounting pronouncements, noting there are 102 Governmental Accounting Standards Board (GASB) pronouncements in this report, and next year there will be 104. He assured they work very closely with Finance to make sure that all new accounting standards are appropriately adopted. He commented that the City does such a good job already providing analysis and context, so it will not appear to be a significant change. Mr. Merritt stated this concludes his remarks for this evening, but he offered to answer questions. There were no questions from Council members. Moved by Ziarko, seconded by Schmidt, RESOLVED, to receive and file the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025. Councilwoman Ziarko appreciated all the hard work that went into the preparation of this report, as well as all of the good news. She pointed out that Regular City Council Meeting Tuesday, December 2, 2025 Page 18 City Council follows this up regularly and watches it closely, whether it is through their budget process or their consent agenda, and when the audit confirms they did a good job, she emphasized that it is much appreciated. She thanked everyone in the Finance Department and the auditing firm for all their hard work and preparation of this audit. Councilman Yanez questioned why the accounting standards change so often. Mr. Merritt replied to inquiry that they would also like to know the answer to that question. He explained he spends a lot of time training and teaching about these standards, so he makes money off doing this; however, he would be happy to make slightly less money to not have to implement changes every year. Mayor Taylor thanked everyone involved for their presentation. He knows the Finance team and the auditors work very hard, and he is glad to have Mr. Merritt and his team. He commented that the City has a long legacy of a phenomenal finance team, and he is very grateful for the work they do, their professionalism, their attention to detail, and for people who want to do business with Sterling Heights, they can rest assured that the City’s finances are in order. They can rely on the financial reports the City is preparing, and that goes a long way in ensuring the City is able to continue to do all of the great things in Sterling Heights. Yes: All. The motion carried (6/0). 7. ORDINANCE INTRODUCTIONS A. Mayor Taylor stated this is to consider the introduction of an ordinance amending Chapter 29 of the Code of Ordinances to add licensing and other Regular City Council Meeting Tuesday, December 2, 2025 Page 19 operational regulations for virtual currency machines and associated devices. He invited Police Chief Andrew Satterfield and Captain Colleen Hopper to give the presentation. Police Chief Andrew Satterfield explained that cryptocurrency is still fairly new, and crypto scams are becoming increasingly prevalent. He pointed out that the ordinance being proposed tonight is another step to protect the Sterling Heights community, and if approved, will make Sterling Heights a harder place for scammers to operate. It will also provide the City’s police officers with more tools to inform, monitor, and intervene before residents become the next victims. He invited Captain Colleen Hopper to continue the presentation, noting she has done a lot of work on this and a lot of collaborative effort with the City Attorney’s office. Captain Colleen Hopper informed that the definition of cryptocurrency is a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography rather than by centralized authority. She thanked Detective Orvelo, who attended several classes to learn about this, and they decided they needed to do something about this to protect their residents. They worked together on this, and she extended her appreciation to the City Attorney’s office as well as her Sergeant’s and Chief’s support. A short video was shown describing crypto ATM and what they do. Capt. Hopper clarified that the video was out of Texas, but she provided an update that in Michigan, there are 648 cryptocurrency ATM machines, with twenty-seven in Sterling Heights. In 2024, the federal government estimated there is $9.32 Regular City Council Meeting Tuesday, December 2, 2025 Page 20 billion lost in crypto scams. The states that now have laws regarding this are California, Minnesota, Wyoming, Florida, New Hampshire, Louisiana, and Illinois. She emphasized that once the money is submitted, it is gone. People continue to do this because they sometimes see it as an investment, a trading opportunity, easy to store securely in a digital wallet, and decentralized wallets reveal nothing about a user’s identity. She explained that the total amount of Bitcoin that can be sold is $21 million, and although that is the investment part of it, it is very unstable. Capt. Hopper talked about why people should not use this, which includes the various scams, one of which is the typical romance scam which seniors often fall victim to, where people will talk to them, convince them they are in love and that they need to come to the country. There are ransomware scams and giveaway scams in the form of computer popups, where they continue to demand more and more fees. There are pyramid scams, similar to an investment scam, where they ask for so much money with the promise they will get so much money back to them. She provided examples of some of these scams. Capt. Hopper explained why the City needs an ordinance to add licensing and other operational regulations for this. The FBI notified her that the twenty-seven crypto ATMs in the City of Sterling Heights is the highest amount of any community in Macomb or Oakland County, so because of that, there are also more scams taking place here than any other city or county in the area. They have had twenty-three active cases since January 1, 2025, and the average age of the victims is 64 years old. The documented loss that people have reported in Sterling Heights Regular City Council Meeting Tuesday, December 2, 2025 Page 21 alone is $542,000 to Sterling Heights residents since the beginning of January 2025. The federal government claims that there is a potential loss of $1,076,000 based on the amount of suspicious activity they monitor. She added that at any time $10,000 or more is deposited into a machine, the FBI is required to be notified. Capt. Hopper addressed the proposed ordinance, explaining that if a business owner intends to maintain a virtual currency machine onsite, a specialty license endorsement/virtual currency license must be obtained, issued by the City Clerk. They must obtain that virtual currency license by March 31, 2026 if this ordinance is adopted this evening. They must permit yearly inspections by the City of Sterling Heights, and the license must be displayed on the virtual currency machine. The ordinance will also require regulations and recordkeeping, and there must be an employee on site of the virtual currency machine location. There must be access to a customer service helpline that they can call if they have questions, and a photo ID is required for their transaction. A daily log of all transactions for a 24-hour period must be kept for ninety (90) days. The machines must disclose to the customer in a clear, conspicuous, legible, and easily readable manner the relevant terms and conditions of the transaction and the amount of any and all fees. It must also contain warnings that the transaction is final, and it must include a consumer fraud warning, informing them to contact the customer service hotline immediately upon suspicion of any fraudulent activity. Capt. Hopper informed that the ordinance will have a provision for new customers, defined as anyone who is conducting a transaction for the first time, and they will Regular City Council Meeting Tuesday, December 2, 2025 Page 22 be considered a new customer for fourteen (14) days. The virtual currency machine owner and operator shall not process any transaction greater than $1,000 during any 24-hour period for new customers. She cautioned that, although they cannot arrest the perpetrators who are in foreign countries where 99.9 percent of them live, this ordinance provides a victim-centered approach, preventing seniors and residents from falling victims to these scams. Capt. Hopper stated a federal Crypto Task Force was established on January 21st, 2025 by President Trump, and they will end up recommending practical policies and regulatory guidelines. She encouraged everyone to have conversations, especially with the elderly, letting them know that they should contact their local police department before purchasing or depositing any money if they have any questions about any financial transaction involving gift cards or cryptocurrency. She stated that concludes her presentation, and they appreciate the City Council’s consideration on adopting this ordinance. They also talk about forfeiture of funds obtained illegally, and the federal Drug Enforcement Agency can already to that. If anyone recognizes a drug dealer who has a crypto wallet, this provides the power to address it. One of their detectives has provided her with Crypto Tracker, which will enable them to track a wallet. When money is placed into a machine, it goes into a crypto cold wallet, where it remains until it is verified by third parties who also earn money. The Police Department would like the ability with the Crypto Tracker machine, through a search warrant, to freeze that money. Once the wallet is frozen, they will be able to take those funds, pending the judge Regular City Council Meeting Tuesday, December 2, 2025 Page 23 signing off on it, and hold that money to give back to the victim reporting the crime. She indicated that is something they are working on for the future. She offered to answer questions. Mayor Taylor opened the floor for public comment, but no one spoke. Moved by Radtke, seconded by Mijac, RESOLVED, to introduce the ordinance amending Chapter 29 of the Code of Ordinances to add licensing and other operational regulations for virtual currency machines and associated devices. Councilman Radtke stated he is happy this ordinance is coming forward, noting he suggested to Administration that they investigate it. He read in the paper that Grosse Pointe Woods had written a similar ordinance, which was the first of its kind in Michigan. He has noticed cryptocurrency machines at several gas stations in the City, but to see the kinds of scams being tied to them, he stressed this ordinance is long overdue. He requested clarification on how much money can be entered and how much can be done over a 14-day period. Capt. Hopper confirmed that a customer having their first transaction at a specific machine or with a specific company is considered a “new customer” and they are considered a “new customer” for the next fourteen days. The maximum amount they can deposit on each of those fourteen days is $1,000. Councilman Radtke felt that is a good idea, especially because the average victim is 64 years of age, so he doubts they use cryptocurrency machines on a regular basis. He does not like the term “ATM” because that has the connotation of being associated with a bank, and this has nothing to do with a bank. The money put in is not insured or protected. He is happy to see the fraud warnings, and he added Regular City Council Meeting Tuesday, December 2, 2025 Page 24 that even if people make a mistake, the limits on how much a new user can enter may keep the mistake from being life changing. He felt this ordinance is common sense, and he urged the state legislature to act, but at least the City of Sterling Heights is taking action to protect their residents. He admitted that any type of regulation can create roadblocks, but in this case, the roadblocks make sense because if a new customer is trying to put thousands of dollars into a machine, he would approach them with the question as to why. He emphasized that he is happy to support this ordinance. Councilman Mijac complimented Capt. Hopper on a very good presentation. He questioned how this ordinance, if it had been in place a year ago, would have impacted the twenty-three cases they have open since January and how much money would have been saved. Capt. Hopper replied to inquiry that she could not predict the exact amount, but she hopes it will decrease the amount of fraud that they have had. Councilman Mijac questioned whether there have been fraud cases occurring in other local communities. Capt. Hopper confirmed that other communities have been experiencing similar scams with these machines. Councilwoman Schmidt questioned how this ordinance will be enforced to make sure the owners comply. Capt. Hopper explained that the licenses are in effect for a year, so each year they will have to apply for a new license. They will go through the City Clerk’s Office Regular City Council Meeting Tuesday, December 2, 2025 Page 25 and Code Enforcement will conduct inspections. She added that Code Enforcement will know how to inspect these machines, and she deferred the question to Mr. Kaszubski. Mr. Kaszubski explained this is a multifaceted process, so there will initially be the licensing. There will be an inspection of the machine done by the Police Department, and the Fire Department may also be involved. Code Enforcement may also be slightly involved. They will make sure the machines are operating properly, but the key to this ordinance is having both the business owner who is hosting the machine, as well as the machine operator, become licensed individually. They will both have to be licensed. The business owner whose property the machine is on should have some responsibility as well as the operator of the machine, who has to be available for the hotline call. They will have to come in annually for renewal, and they will be reinspected. They will have to make sure the warnings are in place, the signs are in place, and the licenses are shown on the machine. They will do a test with a driver’s license to make sure whatever they are going to do requires a license so they can ensure the machines are operating accordingly. They believe if they do all of this, in addition to everything else they have placed into this ordinance, it will severely curtail the fraud that is occurring with these machines. Councilwoman Schmidt commented that she is all for anything they can do to minimize the fraud, so she is in full support of this ordinance. Regular City Council Meeting Tuesday, December 2, 2025 Page 26 Councilwoman Ziarko stated she is definitely in support of the introduction of this ordinance. She is not concerned only about putting the ordinance in place, but she felt there should be some type of community education once this is adopted for anyone who may be interested in partaking in obtaining bitcoin. She agreed with Councilman Radtke that “ATM” is not what this is, because an ATM gives money, and this machine takes money. She would like to see an educational program that they could possibly sponsor at the Community Center or the Library for anyone who is interested in knowing about these frauds and how they can prevent them, either for themselves or a relative. She questioned Capt. Hopper as to whether there is any legislation in the State that is being planned for any type of legislation on bitcoin machines. Capt. Hopper replied to inquiry that there is currently only a house bill that is sitting at the Economic Competitiveness Committee, and it has not gone anywhere. Councilwoman Ziarko commented that if the State puts something in place, they will be required to follow those rules; however, if the State does not have anything in place, the City should be ok. Mr. Kaszubski explained there is new legislation going through the State, being sponsored by cryptocurrency machines, the operators, and owners of those machines, which are trying to bring in some regulations to help. There is a potential that the State could pass laws that protect in some ways, but it might not be total preemption. Even if the State provides some requirements, restrictions, Regular City Council Meeting Tuesday, December 2, 2025 Page 27 or licensing, unless it is total preemption, the City should still have the right to impose additional regulations. He assured that until they see how it goes, this ordinance is a very good measure to put into place at this time. Councilwoman Ziarko questioned how the City knew they had twenty-seven bitcoin machines in the City. Detective Orvelo replied to inquiry that the FBI analysis and the internet revealed their locations. Councilwoman Ziarko commended all who were involved in putting this together. She commented that this is an area where the City should protect its residents, adding the instances of fraud are heard on the news all of the time. Even when people hear it is a scam, they still get involved for whatever reason, so if the City can help them, she would appreciate it. She added that is why she feels public education on this is very important, so she would appreciate some type of program for this education. She is in favor of this ordinance. Councilman Yanez questioned how the people who have these in their stores make money. Detective Orvelo explained that the owner of a gas station or store where these machines are located collect a fee for having the cryptocurrency machine at their facility. They receive a certain percentage of the deposit from the owner of the machine. Councilman Yanez questioned Mr. Kaszubski as to how this ordinance compares to some of the laws put in place in a number of states. Regular City Council Meeting Tuesday, December 2, 2025 Page 28 Mr. Kaszubski replied to inquiry that, looking at various ordinances already in place, many of them are very similar. The proposed ordinance is patterned on one that is located within another community in Michigan, but they also looked at the laws other states have enacted. Some of them allow up to $3,000 to $5,000 per transaction. This ordinance proposes $1,000 because they feel it is a better transaction number, although some would say it should be higher for businesses. He emphasized they decided what fits this community best based on the police detectives’ input and what they feel the scammers tend to do, and they felt the $1,000 threshold for a new user is a good idea. He referred to the video shown earlier, pointing out that in Texas they want a live phone call with an individual for their first transaction. Mr. Kaszubski explained they discussed whether they wanted to include that in the ordinance; however, they considered that it may be too onerous since they were already going to have two different licenses required, to have both the store owner and the machine operator responsible. They did not want to hamper business by being too overprotective because they believe the $1,000 limit is going to minimize the amount of scams. They felt this ordinance is a good happy medium. Councilman Yanez questioned whether these laws have been in place long enough to reflect any impact on fraud. Capt. Hopper replied to inquiry that she did not see any data on individual states, but the loss is over $9 billion in the United States. Regular City Council Meeting Tuesday, December 2, 2025 Page 29 Detective Orvelo explained that, in every one of the cases shown earlier, not one of them limited deposits to under $1,000. He added that they all had deposit limits of over $1,000, so he felt the $1,000 limit would greatly reduce the scams. Councilman Yanez questioned whether it is common for a scammer to direct someone to a cryptocurrency machine in a specific location. Detective Orvelo replied that the scammer will often talk to the person on the phone and tell them exactly where to go. They give them the QR code and they will scan it, and then the scammer will walk them through it. Councilman Yanez questioned that if Sterling Heights passes an ordinance and other surrounding communities do not, the scammers will have them go to a location outside of Sterling Heights. Detective Orvelo replied to inquiry that is a possibility. Councilman Yanez felt it is important to have a statewide law, and he would not be happy with any type of preemption from the State because he wants to make sure their citizens are protected to the City’s level of concern. He commented that this ordinance will be good to have, and although it is not foolproof for the people getting scammed, because they will move to another location. He stated he is in support of this ordinance. Mayor Taylor stated he will support this ordinance, and he thanked Councilman Radtke for bringing this to their attention. He appreciated the work that Captain Hopper, Chief Satterfield, Detective Orvelo, and everyone in the Police Department, as well as the City Attorney’s Office, has done on this. He does not Regular City Council Meeting Tuesday, December 2, 2025 Page 30 disagree that education is important. He explained that in his position as a private sector attorney, he has dealt with victims of these scams. He is aware there is a lot of education, noting that Prosecutor Lucido has held forums in Sterling Heights, some of which he attended. Prosecutor Lucido has put on presentations at senior centers, nursing homes, assisted living facilities, and other places, distributing flyers and information about how to avoid scams. Mayor Taylor stated he likes the idea of the signs and the warnings, and he felt whatever the City can do to stop or limit the scams is great. He agreed with his colleagues that until there is a coalition of communities in Macomb County and Metro Detroit and beyond that have similar ordinances, the scammers will figure this out and direct people to go where there is no regulation. He suggested that each City Council member talk with friends and colleagues in other communities, let them know what Sterling Heights is doing about this, and see if the can get some momentum for other communities to do the same thing. He stated there does not appear to be any downside, even if someone legitimately wants to start purchasing bitcoin from an ATM and make it a regular investment, fourteen days is a decent waiting period. He is in favor of this and commended everyone involved in putting this together and bringing it to the Council’s attention. Councilman Radtke appreciated all of his colleagues’ comments this evening, and he requested, without objection, to direct Administration to send a letter to their State representatives and their State senators, asking them to pursue legislation at the state level to protect people as part of this package. He stated he will Regular City Council Meeting Tuesday, December 2, 2025 Page 31 support this ordinance, but he felt they should get their legislators involved working on their behalf. Mayor Taylor inquired as to whether there are any objections from Council. No one voiced any objections. Councilman Radtke questioned whether they have any plans to put a placard on the machines informing them of the risks. Mayor Taylor suggested they could give it some thought because this will be coming back to Council in two weeks. Mr. Kaszubski replied that he would like to think about it. He reminded that they would be placing these signs on someone else’s machines, and although they are trying to address the issue of scammers, these machines are legitimate. Councilwoman Ziarko questioned the responsibility of the business owner who has this machine on his/her property to report it to the police and have the police come out to view what is going on if fraudulent activity is suspected. Mr. Kaszubski clarified that the store owner is not the owner of the machine. The owners of the machines are not condoning fraud. The fraud is being committed by a third party using the system that is there. The ordinance puts the safeguards in place to tip off the people coming in that what they are doing may be fraud. He pointed out they can protect them only so far, because they cannot blame the store owner. If they have a pattern of fraud and they know what is going on, and the store owner is being obtuse about it, they may not be able to get a new license, which is how they stop that machine from operating. As long as they are following Regular City Council Meeting Tuesday, December 2, 2025 Page 32 the rules, he feels this will decrease the fraud, but they cannot prohibit or make them monitor every transaction because that would be impossible. They set up the parameters that protect them for that short amount of time. Councilwoman Ziarko questioned as to whether there would be any undercover work if they suspect something is going on at a specific location, and whether they would be sending someone in there undercover to determine if something is going on. Mr. Kaszubski replied he does not want to talk about police matters. Councilwoman Ziarko stated this seems complex, and it does not stop at what they are doing tonight. Mayor Taylor questioned how often these machines are used. He does not anticipate that the fraudulent activity is as high as ninety percent in these machines, but it seems it is difficult to send in an undercover officer to watch. He hopes this ordinance will help stop some of what is happening. Capt. Hopper and Detective Orvelo did not know the answer to that question. Councilwoman Schmidt added to Councilwoman Ziarko’s suggestion by noting that a good place to start any type of education on this would be at the Senior Center, along with the Community Center and the Library. She questioned whether they are required to allow these cryptocurrency machines in the City, or whether it is something for which they can place a moratorium. Mr. Kaszubski replied to inquiry that the City Council can place a moratorium on them if they would like, adding there are twenty-seven of these machines Regular City Council Meeting Tuesday, December 2, 2025 Page 33 throughout the City and that saturates the market in Sterling Heights. They could place a cap on the licensing to specify how many units are permitted. They did something similar with massage establishments in the past. They could place a cap and say how many can be licensed in the City. He explained it could be something that could be preempted by the federal or state government because it is starting to become a more widely accepted means of commerce. He cautioned they may not succeed in holding that off for long, but the regulations they are proposing tonight provide them with the opportunity to put something I place they think is meaningful and to see how it works. He does not feel that putting a ban on them is the way to go because they are already here, and they cannot get rid of them that way. Yes: All. The motion carried (6/0). 8. CONSENT AGENDA Mayor Taylor stated this item is consideration of the Consent Agenda as amended, with the elimination of Item 8-D, which has been moved to Consideration Item 9- B. He opened the floor for comments from the public, but no one spoke. Moved by Ziarko, seconded by Schmidt, RESOLVED, to approve the Consent Agenda as amended: A. To approve the minutes of the November 12th, 2025 Special Meeting. B. To approve the minutes of the November 18th, 2025 Regular Meeting. C. To approve payment of the bills as presented: General Fund - $696,488.41, Water & Sewer Fund - $504,298.33, Other Funds - $2,447,198.42, Total Checks - $3,647,985.16. D. This item was moved to Consideration Item 9-B on tonight’s agenda. E. RESOLVED, to: 1. Purchase painting services for Fire Station No. 3 from Mando Construction, Inc., 75 Lafayette Street, Suite 100, Mount Clemens, MI 48043, for a total cost of $22,420, and; Regular City Council Meeting Tuesday, December 2, 2025 Page 34 2. Purchase carpet removal and replacement services for Fire Station No. 3 from Conventional Carpet, Inc., 7155 19 Mile Road, Sterling Heights, MI 48314, for a total cost of $12,061.85. F. RESOLVED, to: 1. Accept the proposal by People Driven Technology, Inc., 6300 Venture Hills Boulevard SW, Byron Center, MI 49315, for information technology consulting services in support of cybersecurity overlay program at a total cost of $54,020.00; and 2. Waive the competitive bidding requirement pursuant to City Code Section 2-217(A)(10)(b) and purchase the suite of Arctic Wolf cybersecurity software licenses from People Driven Technology, Inc., 6300 Venture Hills Boulevard SW, Byron Center, MI 49315, for the period of January 29, 2026, through January 28, 2027 at a first year cost of $86,710.06, and authorize the City Manager to extend these terms for two (2) additional one (1) year periods at an annual 3% increase through January 28, 2030; and 3. Purchase the suite of SentinelOne cybersecurity software licenses from People Driven Technology, Inc., 6300 Venture Hills Boulevard SW, Byron Center, MI 49315, for a period of January 31, 2026, through January 30, 2027, at a cumulative cost of $47,579.55; and 4. Authorize the City Manager to sign all of the documentation required to facilitate this purchase on behalf of the City. G. RESOLVED, to accept a quotation for 10gb internet services for the Pickleball Facility from Quantum Services Group, 1030 Doris Road, Suite 100, Auburn Hills, MI 48326, through January 30, 2030, at the monthly pricing proposed. H. RESOLVED, to receive the lawsuit, International Outdoor Inc. et al. v. City of Sterling Heights; United States District Court for the Eastern District of Michigan Case No. 2:25-cv-13315-SKD-APP. I. RESOLVED, to receive the lawsuit, International Outdoor, Inc. v. City of Sterling Heights; United States District Court for the Eastern District of Michigan Case No. 225-cv-13319-FKB-EAS. Yes: All. The motion carried (6/0). 9. CONSIDERATION A. Mayor Taylor stated this is to consider a Resolution to establish a moratorium on the establishment, erection, construction, or installation of billboards for a period of six (6) months within the City. He invited Dr. Jake Parcell, City Planner, to give the presentation. Regular City Council Meeting Tuesday, December 2, 2025 Page 35 Dr. Jake Parcell, City Planner, explained this is a resolution to establish a moratorium that covers the establishment, erection, construction, or installation of billboards for a period of six (6) months. In the past, Council has determined that, for a variety of reasons, off-premise signs in the City, known as billboards, are not permitted due to potential danger to public safety, distraction of drivers in some instances where people focus on messages being conveyed, anticipating messages to follow as they see digital boards and other functions that are visible from public roadways. It resulted in an ordinance that specifies w billboards are not permitted in the City under the Sterling Heights Zoning Ordinance. Dr. Parcell explained that billboards in the City as defines as an off-premise sign, and their sign ordinance are called a freestanding off-premise sign; however, people can come in with use variance requests, go in front of the Zoning Board of Appeals, and request a variance from the Zoning Ordinance to allow for different types of signage or different types of uses that the Zoning Board of Appeals then has to consider. The issue they are having when they look at billboards as a use is that they are not permitted, so they end up with a long list of variance requests and no standards on which to base them or fall back on in terms of design, placement, materials, height, size, what percentage can be a digital messaging board, how often the messages can change, etc. Dr. Parcell explained that with the previously adopted Master Land Use Plan and the upcoming Zoning Ordinance amendment, the Office of Planning and the City Attorney’s office has seen this as an opportunity to get more study into billboards in the City, providing Regular City Council Meeting Tuesday, December 2, 2025 Page 36 them with ways they can streamline their ordinance process for these signs. They can look at things such as best practices taking place in other communities, whether they should allow billboards, and potentially looking at local businesses or places in the City where they may be allowed. They propose to bring a study to City Council within six months that shows their findings and what other communities have done in a potential ordinance. They believe this will protect the City should they have variance requests, instead of putting together eight or nine variances in one notice, risking mis-noticing it, risking issues with the end result of a decision from the Zoning Board of Appeals because they have no standards on which to fall back on. This will provide them with a more comprehensive view of what billboards in the City would be, and at the end of six months, if not extended for an additional period, they can consider the end result after reading the study or any proposed text language, or they can continue with the ordinance as currently set, which is also an option Council may take. He explained this is open for discussion, but he and Mr. Petrusak, who drafted the moratorium, are both happy to answer any questions. Mayor Taylor opened the floor for public comments, but no one spoke. Moved by Radtke, seconded by Ziarko, RESOLVED, to adopt the resolution instituting a moratorium on the establishment, erection, construction, or installation of billboards for a period of six (6) months within the City. Councilman Radtke understands that they currently ban billboards, and when applicants come before the Zoning Board of Appeals for a variance, there are no standards by which to measure them, so it is confusing for the ZBA to either Regular City Council Meeting Tuesday, December 2, 2025 Page 37 approve or reject them because of the lack of standards. He questioned whether they would write standards for them but still possibly ban billboards in the future. Mr. Kaszubski confirmed that they currently ban billboards. They are looking to study whether or not they want to start allowing them in certain areas of the City where they make sense. If Council decides they make sense in certain areas, they will look at what standards by which those signs should be built. He clarified this does not mean that in six months, the study will come back that they should allow them, because it will be up to City Council in the end. They do not have standards, so anyone wanting a variance is still required to meet all of the hurdles for a variance and show their difficulties and meet the standards necessary to obtain a variance. If they were to be granted the variance, there are no standards, so it is currently up to the Zoning Board of Appeals, which is not the right way to do it. Councilman Radtke understood that they are going to write standards that they can either legalize billboards or not. He noted that if they do not legalize billboards, the ZBA would then have some knowledge about what fair standards may be if they were to allow them on a case-by-case basis. Mr. Kaszubski replied yes, but only if they meet the qualifications and requirements of the zoning variance itself. He confirmed it would be a hardship variance. Councilman Radtke felt it is interesting to look at to see if there are areas of the City in which billboards may be effective. He clarified, however, that he is not a fan of billboards. He is fine with a six-month moratorium, but he wants to see what Regular City Council Meeting Tuesday, December 2, 2025 Page 38 the planners produce, although he is not sure he would vote in favor of authorizing them in the City. Councilwoman Ziarko agreed with the proposed moratorium, but she noticed it indicates six months “unless extended by City Council.” She questioned whether it is possible to approve a moratorium at this time for twelve (12) months. She would prefer to do that rather than to come back in six months and have to extend it. She could not see where it hurts to establish the moratorium for twelve months. If they are finished in nine months, it can come back to Council. They could consider it at that time, and if they decide to adopt an ordinance to allow billboards, it could go into effect after the moratorium expires, or they could lift the moratorium at that point. Dr. Parcell deferred to Mr. Kaszubski on the length of the moratorium. He recalled their rationale was six months for sample language, a case study, and best practices, and if they opted to move forward with an ordinance, they would start it at that point. He assured they can provide updates. Moved by Ziarko, seconded by Schmidt, RESOLVED, to amend the resolution to increase the duration of the moratorium on the establishment, erection, construction, or installation of billboards for a period of twelve (12) months within the City. Mayor Taylor opened the floor to Council for discussion on the amendment, but no one spoke. Mayor Taylor noted on their Consent Agenda they have two billboard lawsuits. He questioned whether this is a protective measure against lawsuits. They are putting Regular City Council Meeting Tuesday, December 2, 2025 Page 39 this moratorium in place, which he considered odd because billboards are not currently allowed by ordinance. He understands the rationale, and that they will come back with some standards. If Council comes back and opts not to make billboards legal, is it possible for Council to pass an ordinance that confirms billboards are banned, but if they are granted as a use variance by the Zoning Board of Appeals, language would be provided as to standards and requirements. He questioned whether that is something that would be allowed. Mr. Kaszubski stated he does not know the answer to that question, but he does not believe that it would be something they would do. [On motion to amend original motion]: Yes: All. The motion carried (6/0). (On original motion with the amendment]: Yes: All. The motion carried (6/0). B. (formerly Consent Agenda Item 8-D) Mayor Taylor stated this was formerly Consent Agenda Item 8-D, which is to accept a proposal for professional services for the completion of a Storm Water Utility Feasibility Study (Total cost of $83,700). He opened the floor for public comment, but no one spoke. Mayor Taylor offered the floor to Councilman Yanez since he was the council member who requested this item be moved to a Consideration item. Councilman Yanez deferred. Moved by Radtke, seconded by Taylor, RESOLVED, to accept the proposal by Raftelis Financial Consultants, Inc. for a Stormwater Feasibility Study at a cost of $83,700 and authorize the City Manager to sign all required documents on behalf of the City. Regular City Council Meeting Tuesday, December 2, 2025 Page 40 Councilman Radtke recalled this was discussed at Strategic Planning earlier this year and they have discussed it at a Council meeting. He is in favor of going forward with this study, adding it seems the committee did a very good job with the proposals they received. Out of the proposals received, this was the cheapest and appears to be the most in-depth. He wants to make sure they get all of the information they can. He noted they are going to produce three different rate structures that would possibly be initiated, and that makes sense to him. He is happy to move forward with this, and he thinks this will both improve the City’s sustainability practices and place the cost on those most abusing the storm water system, including those with large parking lots and large industrial sites, which are the biggest driver of storm water costs in the community. He pointed out these costs are currently paid for by the General Fund, so essentially, all residents pay them. If a storm water utility is established, he is confident that it will create an incentive structure where the biggest users will invest in infrastructure on their own sites. He anticipates that they will invest in green space to hopefully prevent their costs from rising. Councilman Yanez clarified that he does not disagree with stormwater utilities, and he is actually supportive of everything Councilman Radtke had to say. It is basically a user’s fee and is no different than charging for trash, noting if someone puts out more trash, they have to pay more. He stated his concern is the process, and although they talked about it at Strategic Planning and at a meeting, he does not know how many residents know or understand what a stormwater utility is. Regular City Council Meeting Tuesday, December 2, 2025 Page 41 He recalled this action is being taken because a council member made a motion without exception. They went ahead, and they got a cost of $83,700 for this study, and that was placed on the Consent Agenda, so there is no discussion on it. He expressed concern that the City will pay nearly $84,000 for a study that will “sit on a shelf somewhere collecting dust,” but in actuality, they will spend $84,000 on something they have not sold to the public, so they will either have to convince the public or force them to accept it. Councilman Yanez emphasized that he is not happy with that scenario, and he would prefer to do more work on it, possibly through Strategic Planning, to make an in-depth presentation. He felt there has to be a better process of engaging with the public first before they spend this amount of money. He stated he cannot support this tonight through this process. Councilwoman Schmidt took exception to Councilman Yanez’s comments, because she recalled this went before a vote of the Council and she had voted no on it going forward. She noted there was plenty of discussion on it at the meeting where they voted on going forward with a study, and there was also discussion at the Strategic Planning session earlier this year. She added they made a budget amendment for this specific study. Mayor Taylor confirmed it was voted on, and the vote was 4/3, with four in favor and three opposed. Councilwoman Schmidt pointed out that the study does not mean they are going forward with the stormwater utility, but they are getting the information to make Regular City Council Meeting Tuesday, December 2, 2025 Page 42 the decision as to whether or not to go forward. At the end of the study, they will be able to further educate themselves and the residents as far as what this means. Councilwoman Ziarko recalled former Mayor Notte once told her that it does not matter how the vote went, when the decision was made, the decision that prevailed was a Council decision. She pointed out they rejected $300,000 that was originally talked about during Strategic Planning; however, this seemed to be a compromise, and they all understood they were going to do the study to determine the next step, whether or not they would pursue more action, and the cost to go forward. She felt it was done fairly, and this is in the budget. She was not offended that this was on the Consent Agenda because it is an approved budget amount. She is in favor of going forward with this study. Mayor Taylor stated this was talked about at Strategic Planning and extensively during the budget process. He is comfortable with doing the study, but he agreed with Councilman Yanez that this is not something that large numbers of people are insisting to have a stormwater utility. He added that not one of the 134,000- plus residents has asked him to do a bitcoin ATM ordinance, but the City Council is here to try to find ways to improve the quality of life for their residents, save their residents money, and find more equitable ways to assess the fees that are important and very expensive. He felt the study will provide them with very good background information, and it is a good compromise from where they were originally, doing a more expensive study. From the backup material, it seems this Regular City Council Meeting Tuesday, December 2, 2025 Page 43 will accomplish what they need to do to make a better-informed decision, so he is in favor of it. Yes: All but Yanez, who voted no. The motion carried (5/1). 10. COMMUNICATIONS FROM CITIZENS Mayor Taylor opened the floor for communications from citizens for any item not on tonight’s agenda, but no one spoke. 11. REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL Mr. Vanderpool stated he had nothing further to add this evening. Councilman Radtke stated he appreciated the good presentation on the Look No Further branding campaign. He recalled when they first started this campaign, they talked about neighborhood branding. They are now two or three years into the campaign, and he has not seen anything on the neighborhood branding. He knows they have strong members of their Chaldean community, along with others, who have been encouraging some neighborhood branding, especially on the west side of the City. He asked Mr. Vanderpool whether there has been any talk about the neighborhood branding program. Mr. Vanderpool explained the Look No Further campaign is an outward-looking campaign to inform those outside of Sterling Heights about all that is going on here, but it is not an inward-looking campaign. He understands Councilman Radtke’s interest, and he agreed that there has been discussion on it, but there has been no clear direction. He explained that if City Council’s desire is to do something more inward in terms of branding neighborhoods, Administration is happy to develop a marketing effort for internal branding of their neighborhoods, Regular City Council Meeting Tuesday, December 2, 2025 Page 44 such as the Chaldean community, the Polish community, the Italian community, etc. He does not believe the direction is very clear at this time, but it is something they can discuss further in Strategic Planning. Councilman Radtke recalled the discussions they had when they were discussing what they wanted to see out of a branding campaign, and one of them was distinct neighborhoods, including North Van Dyke. He clarified that it is not just ethnic communities, although there is a strong interest from the Chaldean community for neighborhood branding, but it has more to do with the distinct parts of Sterling Heights. Residents in different areas have different ideas about their neighborhood, and he would like to see more internal structure. He noted they talk about Sterling Heights as a whole, and he appreciates that, but they do not brand distinct parts of their City, nor do they have wayfinding. He does not feel their wayfinding has been improved, other that the City campus area. Councilman Radtke commented that the signage throughout the City should look alike and be part of one concentrated campaign. He would like to discuss this further and hoped City Council will give some thought to this. Councilwoman Ziarko questioned an area of Schoenherr, when driving north approaching Hall Road, it goes from three lanes to four because of the right turn lane. Motorists in the second right turn lane have the option of continuing straight on Schoenherr past Hall Road or turning right at Hall Road. She noted there is a sign that indicates this can be done; however, in most areas of the City, there are also painted arrows on the pavement that reflect this as well. She pointed out that, Regular City Council Meeting Tuesday, December 2, 2025 Page 45 as they are reading that the Schoenherr/Hall Road intersection is one of the higher accident-prone intersections in the community, possibly more signage or painted arrows on the roadway would help. She concluded that she hopes to see everyone at Sterling Christmas this Saturday. Mayor Taylor requested clarification from Councilwoman Ziarko as to the location of the lanes she referenced on Schoenherr. He explained he recently used the right turn lane to make a turn from westbound 16 Mile Road to northbound Schoenherr, and upon completion of his turn, he went to get over into the left lane, and someone honked at him after apparently using the throughway lane on 16 Mile as a second right turn lane onto Schoenherr, which is not allowed at that location. Councilwoman Ziarko noted there are a couple of places in the City where right turns are permitted from two lanes. She cited on eastbound Utica Road, there are two lanes where right turns are allowed onto southbound Schoenherr. Mayor Taylor agreed that the arrows on the pavement would be a good idea in those situations. He reminded everyone that Sterling Christmas is this Saturday at 5:30 p.m. Santa Claus will be there, the tree will be lit, and it will be cold but fun. 12. UNFINISHED BUSINESS There was no unfinished business. 13. NEW BUSINESS There was no new business. 14. CLOSED SESSION PERMITTED UNDER ACT 267 OF 1976 Mr. Kaszubski stated there are no items for closed session this evening. Regular City Council Meeting Tuesday, December 2, 2025 Page 46 15. ADJOURN Moved by Ziarko, seconded by Schmidt, RESOLVED, to adjourn the meeting. Yes: All. The motion carried (6/0), and the meeting adjourned at 8:58 p.m. MELANIE D. RYSKA, City Clerk