Regular City Council Meeting - Sterling Heights, Michigan

CITY OF STERLING HEIGHTS

MINUTES OF REGULAR MEETING OF CITY COUNCIL

WEDNESDAY, JULY 5, 2017

IN CITY HALL

Mayor Michael C. Taylor called the meeting to order at 7:30 p.m.

Mayor Taylor led the Pledge of Allegiance to the Flag and Melanie D. Ryska, City

Clerk, gave the Invocation.

Council Members present at roll call: Deanna Koski, Gary Lusk, Maria G.

Schmidt, Nate Shannon, Liz Sierawski, Michael C. Taylor, Barbara A. Ziarko.

Also Present: Mark Vanderpool, City Manager; Marc D. Kaszubski, City Attorney;

Melanie D. Ryska, City Clerk; Carol Sobosky, Recording Secretary.

APPROVAL OF AGENDA,

Moved by Koski, seconded by Ziarko, to approve the Agenda as presented.

Yes: All. The motion carried.

REPORT FROM CITY MANAGER

Mr. Vanderpool reported on a new program started March 1, 2016 under the

Great Lakes Water Authority entitled Water Residential Assistance Program, or

WRAP, which helps qualified people with overdue payments. He explained

that Sterling Heights was one of the first to start up the program, and they have

about 50 residents enrolled in the program. WRAP recipients receive about $25

per month toward their water bill, in addition to assistance with arrearages of

Regular City Council Meeting Wednesday, July 5, 2017 Page 2

up to $1,000 per year. He stressed that anyone having trouble paying has this

program available to them, and they can either call the City at 446-CITY, or they

can go to the Great Lakes Water Authority’s website at www.glwater.org.

Mr. Vanderpool highlighted a major construction project starting in a couple of

months, located on 16 Mile Road, west of Van Dyke, which will include

development of a 127,000-square-foot industrial building that will be

associated with production of the new Ram pick-up truck. He noted that the

new Ram pick-up truck is going to be assembled at the Sterling Heights

Assembly Plant (SHAP), and production of that vehicle is expected to begin

later this year. He emphasized the huge economic impact all this

manufacturing has in the City. He noted that almost all the new buildings

being constructed on the former Sunnyview site are related to the

manufacturing of the Ram pick-up truck.

Mr. Vanderpool stated that SterlingFest is coming up later this month, and a

brief video was shown highlighting that event to take place the last week of

July, from July 27th through 29th. The video also highlighted some of the

upcoming music events scheduled during the Festival.

Mr. Vanderpool reminded that consumer-grade fireworks cannot be used after

11 p.m. this evening. This is the last day that the State of Michigan permits it

for this holiday, and the City of Sterling Heights bans the fireworks the rest of

the time. Any further usage is banned until Labor Day, and there will be three

more days where the fireworks will be permitted at that time. Mr. Vanderpool

http://www.glwater.org/


stated that the police officers have already issued numerous tickets and made a

number of arrests related to illegal use of fireworks, and enforcement will

continue, although he noted it is difficult to catch the individuals. He assured

they are doing the best they can. He stated there have been numerous

attempts to repeal this legislation at the state level, but unfortunately, none of

the bills have moved out of committee. He urged residents to write to or call

the governor and state representatives to express their displeasure and

demand a repeal.

Mr. Vanderpool requested, at the conclusion of tonight’s agenda, that Council

convene in Closed Session under Section 8(h) Open Meetings Act to consult

with the City’s legal counsel regarding the trial or settlement strategy in

connection with pending litigation, and under Section 8(c) to discuss strategy

in connection with collective bargaining negotiations.

Mr. Vanderpool concluded his report with the recognition of Ms. Hanna Tatros,

an administrative intern, who has been working very hard with the City this

summer and is at the meeting this evening.

PRESENTATION

Mayor Taylor stated this is a presentation for the 2016 Project of the Year from

the Michigan Chapter of American Public Works Association (APWA) for the

Dodge Park Road Reconstruction, City Project #14-254, and he introduced Mr.

Brent Bashaw, City Engineer, to give the presentation.


Mr. Bashaw, recapped the 2016 reconstruction project of Dodge Park Road,

including 1.9 miles from Metro Parkway to Utica Road. He stated the project

was many years in the planning and in 2013, the City received federal funding

to cover 80% of the costs of the project. The project grew beyond replacing

the pavement to include geometric enhancements that improved safety and

functionality with a dedicated left-turn lane and deceleration lanes. The

improvements also created pedestrian connectivity to parks, commercial

businesses, and safe paths to the schools as well as exercise options. He

explained this stretch of road is unique because it contains three schools that

front the road, and many more schools are impacted from the project area. It

also contains commercial properties, places of worship, police station, library,

district court and many residences. He stated there was great community

input, and the project was completed in 2016. He gave special thanks to the

Utica Community Schools, local businesses, churches, commuters and

residents affected by the everyday construction for their efforts in

accommodating this project. He also thanked the prime contractor, Dan’s

Excavating, who did a great job providing a quality, on-time project, and

special thanks to consulting engineers, Hubbel Roth & Clark, Inc. and to City

Council for their support of the project. Mr. Bashaw proudly stated that the

City has been recognized on many levels since completing this project. The

project received an award from the Michigan Concrete Association, which beat

out over 70 other projects for the Urban Collector Road of the Year, and it won


two awards from the APWA, one for the Metro Detroit Region Transportation

Project of the Year, and recently, won the statewide award project for the

APWA Transportation Project of the Year. Mr. Bashaw introduced Mr. Chuck

Hart, President for the statewide chapter of the APWA, to present the award.

Mr. Chuck Hart, provided a little information about their organization.

He stated they appreciate the opportunity to present this award in front

of City Council. They primarily focus on training and education at all

levels to show the benefits and importance of public works. He stated a

project like the Dodge Park project takes thousands and thousands of

hours to plan and implement, and it is a testament to a great public

works project. He presented the award to City Council.

Mayor Taylor thanked Mr. Bashaw and Mr. Hart, as well as everyone who

worked on this project. He felt the accolades they received are well-deserved

and it is a fantastic roadway. He pointed out that this is the roadway that leads

into the City’s major park, City Hall, and the future Parks & Recreation

Community Center.

PUBLIC HEARING

1. Mayor Taylor stated this is a public hearing to consider the request by Mor-

Tech Manufacturing, Inc., for an Industrial Facilities Tax Exemption Certificate

(IFEC) at 37641 Mound Road, with a presentation by Mr. Luke Bonner, Senior

Economic Development Advisor.


Mr. Bonner stated this is regarding an IFEC for Mor-Tech Manufacturing, Inc.,

operating three facilities in Sterling Heights. He explained they are

consolidating those operations, with plans for future expansion, in a 43,000-

square-foot headquarters, research and manufacturing facility for a proposed

real property investment of $3,038,000 at 37641 Mound Road. He stated the

staff is recommending a five-year tax abatement consistent with the term of

the lease at the facility with Kemp & Sherman, and over that five-year term, it is

anticipated that $61,350 of net new tax revenue will be generated for the City.

He introduced Mr. David Clark, owner of Mor-Tech.

Mr. Clark, thanked the Council for considering their application. He

stated they have been in business in the City of Sterling Heights for 25

years, and about 9 years ago, they started a design company and are

edging closer to a full-tech company. He explained the product they

manufacture, and informed they have a 10-year contract with General

Motors for this type of vehicle. He stated that over the last few years,

they have also been selling globally and are in the process of

developing two new vehicles this year, as well as several other products

used throughout the industry. They have hired five people already this

year, as well as three last year, so their expansion plans are rapidly

growing. They have had IT people coming to work for them and have

been attracting top candidates. They continue to develop new

products, and have worked with the local schools. He looks forward to


working with the City of Sterling Heights, noting they not only employ

Sterling Heights residents but they offer a lot to the community because

a lot of their vendors are also Sterling Heights companies.

Mayor Taylor opened the floor for comments from the audience.

Mr. Joe Judnick – opposed to tax abatements.

Moved by Schmidt, seconded by Sierawski, RESOLVED, to adopt the resolution

approving the application by Mor-Tech Manufacturing, Inc. for an Industrial

Facilities Tax Exemption Certificate at 37641 Mound Road for a period of 5

years in accordance with the guidelines established by City Council, and the

Mayor and City Clerk are hereby authorized to sign, as applicable, all

documents required in conjunction with this approval.

Councilwoman Schmidt thanked Mor-Tech for being in this community for 25

years, and she stated she is looking forward to having them continue. She

stated their commitment to investment in this community says a lot about how

they feel about this city, and the $61,350 tax revenue is appreciated as well.

Councilman Lusk stated this is a perfect example of why companies look to

locate in this City. He added that when companies are coming in, increasing

revenue and hiring new employees, he will support them.


RESOLUTION A resolution of the Sterling Heights City Council approving the application by Mor-Tech Manufacturing, Inc. for an Industrial Facilities Exemption Certificate for a New Facility.


Minutes of the regular meeting of the City Council of Sterling Heights, Michigan, held on the 5th day of July, 2017, at the City Hall, 40555 Utica Road, in Sterling Heights, Michigan, at 7:30 p.m.: PRESENT: Deanna Koski, Gary Lusk, Maria G. Schmidt, Nate Shannon, Liz Sierawski, Michael C. Taylor, Barbara A. Ziarko. ABSENT: None The following preamble and resolution were offered by: Schmidt and supported by: Sierawski. WHEREAS, pursuant to P.A. 198 of 1974, M.C.L. 207.551 et seq., after a duly noticed public hearing held on May 16, 2017, the City Council established by resolution an Industrial Development District (IDD); and, WHEREAS, Mor-Tech Manufacturing, Inc., (Applicant) has filed an application for an Industrial Facilities Exemption Certificate with respect to a new facility to be installed within the IDD; and, WHEREAS, before acting on said application, the City Council of Sterling Heights held a public hearing on July 5th, 2017, at 40555 Utica Road, in Sterling Heights, MI at 7:30 pm, at which hearing Applicant, the Assessor and a representative of the affected taxing units were given written notice and were afforded an opportunity to be heard on said application; and, WHEREAS, construction of the new facility had not begun earlier than six (6) months before May 17th, 2017, being the date of acceptance of the application for the Industrial Facilities Exemption Certificate; and, WHEREAS, completion of the new facility is calculated to and will at the time of issuance of the certificate have the reasonable likelihood to retain, create or prevent the loss of employment in the City of Sterling Heights and WHEREAS, the aggregate SEV of real and personal property exempt from ad valorem taxes with the City of Sterling Heights, after granting this certificate, will not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property thus exempted. NOW, THEREFORE, BE IT RESOLVED that:


1. The City Council finds and determines that the granting of the Industrial Facilities Exemption Certificate considered together with the aggregate amount of certificates previously granted and currently in force under Act No. 198 of the Public Acts of 1974, shall not have the effect of substantially impeding the operation of the city of Sterling Heights, or impairing the financial soundness of a taxing unit which levies ad valorem property taxes in the city of Sterling Heights. 2. The application by Mor-Tech Manufacturing, Inc. for an Industrial Facilities Exemption Certificate is hereby approved with respect to a New Facility on the following described parcel of real property situated within the Industrial Development District, to wit: LEGAL DESCRIPTION T2N, R12E, SEC 20: COMM AT E 1/4 POST SEC 20; TH S00*09'45"W 821.75 FT ALG E SEC LINE TO POB; TH S00*09'45"W 237.37 FT; TH S89*53'00"W 520.0 FT; TH N00*09'45"E 237.37 FT; TH N89*53'00"E 520.0 FT TO POB; EXC E 102.0 FT, BEING PART OF PARCELS 1, 2, & 3 OF RASKA FARM (UNREC.) SPLIT & COMB FROM -005, -006, -013 FOR 1998 3. The Industrial Facilities Exemption Certificate when issued shall be and remain in force for a period of 5 years after completion. AYES: 7 NAYS: 0 RESOLUTION DECLARED ADOPTED. I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Council of Sterling Heights, County of Macomb, Michigan, at a regular meeting held the 5th day of July, 2017. ________________________ Melanie D. Ryska, City Clerk

2. Mayor Taylor stated this is a public hearing to consider the request by Mancini

Enterprises, LLC for an Industrial Facilities Tax Exemption Certificate at 42805

Van Dyke, with presentation by Mr. Luke Bonner.


Mr. Bonner stated he would like to request a postponement to August 1, 2017.

He explained that the request should have been for a speculative building

rather than an IFEC.

Mayor Taylor opened the floor for comments from the audience, noting that

the administration is requesting a postponement.

Mr. Joe Judnick – opposed to tax abatements; questioned whether

speculative buildings qualify for tax abatements.

Moved by Schmidt, seconded by Ziarko, RESOLVED, to:

(A) Postpone indefinitely consideration of an Industrial Facilities Exemption

Certificate at 42605 Van Dyke; and

(B) To set a public hearing on Tuesday, August 1, 2017 at 7:30 p.m. regarding

the application by Mancini Enterprises, LLC for a speculative building

designation at 42605 Van Dyke.


3. Mayor Taylor stated this is a public hearing to consider the request by Cadillac

Ferndale Corporation to establish a Plant Rehabilitation District (PRD) at 7000

15 Mile Road, with presentation by Mr. Luke Bonner.

Mr. Luke Bonner explained Cadillac Ferndale Corporation has filed an

application to establish a Plant Rehabilitation District on real property known

as 7000 15 Mile Road. This is a new investment valued at $3 million to renovate

the interior and exterior of the property, including increasing the roof height to

today’s industrial standards. Mr. Bonner explained Cadillac Products facility


was originally constructed in 1957, with warehouse additions in 1966 and the

total combined space of the buildings totals approximately 150,000 square

feet. Proposed renovations to the facility include increasing the ceiling height,

manufacturing space, hydraulic lift system, high-class landscaping, and mixture

of materials on the building to upgrade the façade.

Mr. Bonner explained that for owners to remain competitive in this market, the

project is not actually eligible for traditional Industrial Facilities Exemption

Certificate, but because the building is at least 50% functionally obsolete, the

PRD will allow a freeze or maintenance of the current tax rate they are already

paying. Mr. Bonner invited Cadillac Ferndale Corporation representatives to

provide a glimpse of the project.

Mr. Roger Williams, Treasurer of Cadillac Ferndale Corporation and

Cadillac Products, Incorporated, informed that Cadillac Ferndale

Corporation is a real estate holding company which generally covers

leased properties to their top companies. He explained the prospective

tenants they have approached intend to employee between 40 to 120

people. This investment has grown to about $3.7 million, and may go

higher. Mr. Williams stated they are encouraged by the presentation

from Mr. Bonner and felt he did a good job of presenting the proposal.

Mayor Taylor opened the floor for comments from the audience.


Mr. Joe Judnick - congratulated Mr. Williams and thanked him for

buying this vacant building. He stated he is in favor of this request

because it is currently an eyesore.

Ms. Jazmine Early – questioned whether City requires a certain

percentage of new hires to be residents of Sterling Heights.

Moved by Ziarko, seconded by Sierawski, RESOLVED, to adopt the resolution

approving the application by Cadillac Ferndale Corporation to establish a Plant

Rehabilitation District at 7000 15 Mile Road.

Mayor Pro-Tem Ziarko thanked Mr. Williams and his associates for taking the

time to reinvest in this building, noting this is an old building that needs a face

lift, and the City is glad they are putting the money into it. She wished him

well.


Resolution A resolution of the Sterling Heights City Council establishing a Plant Rehabilitation District. Minutes of the regular meeting of the City Council of Sterling Heights, Michigan, held on the 5th Day of July, 2017, at the City Hall, 40555 Utica Road, in Sterling Heights, Michigan, at 7:30 p.m.: PRESENT: Deanna Koski, Gary Lusk, Maria G. Schmidt, Nate Shannon, Liz Sierawski, Michael C. Taylor, Barbara A. Ziarko. ABSENT: None The following preamble and resolution were offered by: Ziarko and supported by: Sierawski. Resolution Establishing a Plant Rehabilitation District for Cadillac Ferndale Corporation (Applicant)


WHEREAS, pursuant to PA 198 of 1974, as amended, this City Council has the authority to establish Plant Rehabilitation Districts within Sterling Heights; and WHEREAS, Applicant has petitioned this City Council to establish a Plant Rehabilitation District on its property located in Sterling Heights hereinafter described; and WHEREAS, construction, acquisition, alteration, or installation of a proposed facility has not commenced at the time of filing the request to establish this district; and WHEREAS, written notice has been given by mail to all owners of real property located within the district, and to the public by newspaper advertisement in the Sterling Heights Sentry newspaper and/or public posting of the hearing on the establishment of the proposed district; and WHEREAS, on July 5th, 2017 a public hearing was held at which all owners of real property within the proposed Industrial Development District and all residents and taxpayers of Sterling Heights were afforded an opportunity to be heard thereon; and WHEREAS, the City Council deems it to be in the public interest of Sterling Heights to establish the Plant Rehabilitation as proposed; and WHEREAS, it is hereby determined that the property comprising not less than 50% of the state equalized valuation of the property within the proposed Plant Rehabilitation District is obsolete. NOW, THEREFORE, BE IT RESOLVED by the City Council of Sterling Heights that the following described parcel of land situated in Sterling Heights, Macomb County, and State of Michigan, to wit: Parcel Identification No. 10-33-202-004-000 SEC 33; COM AT NE COR SEC 33; TH S89*18'24"W 1989.50 FT ALG N SEC LINE TO POB; TH DUE S 1294.67 FT; TH 398.79 FT ALG A CURVE TO R, RAD=288.52 FT & L/CH BEARS N66*23'10"W 367.79 FT; TH N24*26'20"W 90.91 FT; TH N19*40'40"W 748.82 FT; TH N0*24'34"E 351.76 FT TO A PT ON N SEC LINE; TH N89*18'24"E 624.58 FT ALG N SEC LINE TO POB. 14.456 A. 82 COMBINE & SPLIT OF 1033202001 & 502002


is established as a Plant Rehabilitation District pursuant to the provisions of PA 198 of 1974, as amended. AYES: 7 NAYS: 0 RESOLUTION DECLARED ADOPTED. I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Council of Sterling Heights, County of Macomb, Michigan, at a regular meeting held the 5th day of July, 2017. __________________________ Melanie D. Ryska, City Clerk

Mayor Taylor wished all three petitioners good luck on these developments.

ORDINANCE INTRODUCTION

4. Mayor Taylor explained this is to consider an introduction of ordinances

amending Article 28 of Zoning Ordinance No. 278 and Chapter 12 of the City

Code to regulate the licensing and operation of new and existing banquet

facilities and accessory banquet or event uses, with a presentation by Mr. Chris

McLeod, City Planner.

Mr. McLeod explained two potential ordinance amendments are being

introduced tonight, one to the City’s Zoning Ordinance and the other to the

overall City’s code of regulations. He stated the City passed a moratorium in

November 2016 on the opening and operation of new banquet facilities and

expansion of existing facilities, because the City lacked regulations governing

that type of use. The moratorium was for six months and was extended for

another three months and is set to expire within the month. He explained

during that time, they have worked on these ordinances with the intent to


better protect the neighboring property owners, city residents as a whole and

those who attend functions at these facilities. There were many new and

ancillary banquet facilities opening, and most restaurants have some sort of

room that can be rented or set aside for a banquet-type operation, possibly

holding between 50 to 100 people. Mr. McLeod reviewed the zoning provision

portion, covering all new banquet facilities going in and requiring a Special

Land Use approval from the Planning Commission, and existing banquet

facilities would be grandfathered; however, if that facility was enlarged or

significantly altered, it may require additional Special Land Use approval. The

licensing provisions, which are part of the regulatory provisions, will require all

banquet facilities to get a license, which is a two-step process. Ancillary

banquet facilities not open past 11 p.m., are exempt from the ordinance

provisions. New or modified stand-alone banquet event facilities would be

allowed as Special Land Uses in the C-2, C-3 and C-4 districts. Accessory

banquet uses would be allowed in their residential district, but he emphasized

that is an ancillary banquet facility, such as a golf course or a place of worship,

where the banquet facility is an accessory use. He explained that all banquet

facilities must obtain a license by January 5, 2018, and those licenses would be

valid for two years unless it is suspended or revoked. Mr. McLeod discussed

penalties, ranging from a $500 fine for a simple infraction, and consecutive

violations within a 12-month period would be considered misdemeanors, and

a third violation would lead to a suspension or potential revocation of the


license. Mr. McLeod presented a flow chart of how the process would work. He

stated if an ancillary banquet facility is operating past 11 p.m. but has less than

two events per year, they can handle those as temporary uses. He explained if

the facility is adjacent to residential property, they are required to do a

nuisance mitigation plan, reviewed by the Planning Commission, showing how

they will not impact the abutting residential area.

Mr. McLeod explained that they invited about 48 owners of those facilities to

attend a city forum, with 11 signing in, although he estimated there was

representation of closer to 20 facilities. The feedback on this ordinance was

good, and a lot of valuable input was received. The temporary use provision

came from some of the restaurants that said they may only have one event per

year, which might be New Year’s Eve, and they questioned having to go

through this for one night. They felt that was a good point, so the ordinance

was changed to allow a temporary use provision. Most of the representatives

present felt more comfortable having a licensing provision. Mr. McLeod stated

that concludes his presentation, and he offered to answer questions.

Mayor Taylor opened the floor for public comment.

Mr. Harry Marchlones – did not understand flow charts; urged Council

members to understand it prior to voting on adoption.

Mr. William McGregor – requested postponement for opportunity to

look at details more in depth.


Mr. Charles Jefferson – requested specific examples to help residents

understand, such as comparing Penna’s to a new facility at Maple Lanes.

Mr. Jeffrey Norgrove – in favor of proposed ordinance; provides much-

needed guidelines and restrictions for these types of businesses.

Moved by Ziarko, seconded by Schmidt, RESOLVED, to introduce an

amendment to Chapter 12 of the Sterling Heights City Code to establish

licensing regulations pertaining to the establishment and operation of banquet

and event facilities and accessory banquet or event uses.

Mayor Pro-Tem Ziarko understands what they are trying to do. She requested a

copy of the flow chart and felt that is a great example of who it would affect.

She agreed something needs to be in place so that when new halls open, there

are new regulations. She inquired as to how many banquet facilities are in the

City.

Mr. McLeod replied to inquiry that they conducted an exhaustive search and

Mr. Andrews, from O’Reilly Rancillio, spearheaded that search. The Fire

Marshall became involved, and the list was circulated. While he does not

believe it is all-inclusive, he felt the 48 were pretty inclusive of the number of

facilities that would fall under this ordinance.

Mayor Pro-Tem Ziarko inquired as to whether this will include the new hotels

that will have conference rooms.

Mr. McLeod replied the hotel use would be considered the principal use of the

property, so if they did have a facility of this nature, it would be deemed


accessory. He explained they added event use because some of these

gatherings are not necessarily food-related. If the hotel will have this type of

facility, they will need to submit an accessory banquet application.

Councilwoman Schmidt inquired as to how the City will police the businesses

that host only one or two events a year.

Mr. McLeod replied that, as with use, it will go through code enforcement and

getting the word out. It is a matter of being proactive on the education aspect,

and if they find out there were uses or events that went on later than 11 p.m.,

they will be informed that this provision is in effect. They will be asked how

many of these events are held in a year, and based on that, determination is

made whether they need to go through the full process or whether they need

to go through the temporary use process.

Councilwoman Schmidt agreed this is past due, and she agreed with the 11

p.m. provision. She noted they have heard of instances where there are

activities going on in these ancillary rooms in restaurants going on very late at

night, and she stated the ordinances need to be in place to prohibit that

activity from taking place. She advised Mr. McGregor and others interested in

obtaining more back-up information on this that the entire meeting packet is

on line on Thursday afternoon or Friday morning prior to the meeting, and that

provides the entire explanation of what is being proposed.

Councilwoman Koski requested the new zoning regulations be reviewed one

more time so everyone understands what is being added and changed.


Mr. McLeod stated the City currently has a singular provision within the zoning

ordinance that mentions banquet facilities as an ancillary use. The City needs

additional regulations for protection. These provisions have been developed

and reviewed by meeting with the Fire Marshall, Police Department, City staff,

and others, and it was determined that Special Land Use approval would be the

appropriate way to deal with main banquet facilities. Some of these uses have

large impacts on areas, based on the size and capacity as well as traffic they

may generate during peak times. He stated any new or expanded banquet

facility will require Special Land Use approval through Planning Commission,

and site plans would be provided. Ancillary or accessory banquet facility uses

are typically deemed as permissible use as long as they are ancillary to a main

use; therefore, minimal review will be necessary from the Zoning Ordinance

aspect. Where uses may be adjacent to residential or where additional

information may be necessary, the ordinance provides flexibility to City staff to

work with the applicant to make sure adjacent properties will be protected

through the requirement of a nuisance mitigation plan. Mr. McLeod stated the

zoning provisions in this are the least intrusive as possible but while still

protecting the City.

Councilwoman Koski inquired as to whether each case will be dealt with

separately. She cited the example of a Knights of Columbus hall that had been

vacant and the owners would like to open it as a banquet facility. She inquired

as to what would qualify this building to become a banquet facility.


Mr. McLeod replied that is why Special Land Use is required, because it is

designed to take each one on a case-by-case basis. They can look at the

surrounding environment, the intensity of the use, and the decision can be

made by the Planning Commission based on those factors. He explained the

minimum standards that must be met, including the requirement that it must

be on a major roadway. Most of the main provisions will be easily met by

existing facilities. The Special Land Use allows the Planning Commission to

delve a little deeper to talk about the surrounding area and taking all factors

into account.

Councilwoman Koski inquired as to how the City will monitor the facilities that

have taken down a wall and have created an accessory facility. She inquired as

to whether that information will be a result of feedback from neighbors.

Mr. McLeod replied enforcement is always enhanced by residents or business

owners who are monitoring what goes on in their neighborhoods. As part of

the licensing requirement, they will have to report that information as well.

The idea behind the licensing is to make sure that they have a current

reflection of what is going on at that facility. The proposed two-year license

will be less burdensome for owners, but still provide current information.

Businesses that do not follow the rules and regulations will have to come into

compliance with these ordinance provisions.

Councilwoman Koski was concerned this may not be strong enough.


Councilman Shannon questioned whether there is a way Mr. McLeod could use

more basic language to provide an overview of this. He wanted to make sure

all the residents understand this proposal.

Mr. McLeod clarified this does not supersede the Health Department’s

regulations. The zoning aspects deal with the use of the property, and the City

has had very few regulations in terms of this type of use and where it can be

located, or where it is prohibited. These provisions as proposed will delineate

when and where a banquet operation can go, both in terms of a main facility

and an ancillary facility. The regulatory aspect, or licensing aspect, will provide

the City with a licensing mechanism to make sure that they have current

information and know what is going on with that facility. It also ensures that a

banquet facility is operating the way the City expects it to operate. This

imposes regulations that were not previously in place. He estimated the

licensing fee will probably be like the outdoor patio fee, which is $500 for a

new license, and $250 for a renewal, and that is for a two-year license.

Councilman Shannon stated that, at this point, there is a fine in place for noise

or operating too late, but the facilities can continue to pay the fine and

continue to operate. He inquired as to whether this is correct.

Mr. McLeod confirmed that under current ordinances, that is correct, unless the

City took even further measures.


Councilman Shannon stated now with the licensing and outlined penalties, the

license can be revoked if they continue to violate the provisions of the

ordinance.

Mr. McLeod confirmed that the penalty section of this is an escalating

provision, so the first violation would result in a $500 fine, but it quickly gets to

a suspension, which is a short-term removal of the license, or there could be a

revocation.

Councilman Shannon thanked Mr. McLeod and felt he did an excellent job of

explaining this proposal. He stated he is in favor of these amendments.

Mayor Taylor summarized that there are two major components to what they

are doing. This is to establish zoning regulations. He questioned if he were to

open a banquet facility under the current ordinance, where could he put it and

what regulations would govern his proposed banquet facility.

Mr. McLeod replied that it would currently be a C-2 use, and there are no other

regulations now. He replied to inquiry it would be like opening any other

business.

Mayor Taylor stated the problem is people are opening banquet facilities that

are remaining open all night and are not up to code, so this provision of a

Special Land Use process will enable the City to look at it and determine if it

complies with the neighborhood standards. He noted the second aspect,

which is the licensing portion. He discussed the difference between primary

and ancillary uses, and used the example referred to by Mr. Jefferson, where


Penna’s is a primary use banquet facility, whereas Maple Lane is a golf course

and that is its primary use. A banquet facility at Maple Lane would be

considered an ancillary or secondary use. All new banquet facilities, whether

primary or secondary, need to go through this approval process. A Special

Land Use approval needs to be obtained through the Planning Commission. If

it is a secondary use, the Special Land Use process is not required, but they

would still have to apply for a license and get administrative review from the

Planning Department. If the property abuts residential, there is a secondary

review and a nuisance mitigation plan may be required. A new development

abutting residential would require a nuisance mitigation plan. If it is an existing

facility and there have been no more than two complaints within the last

twelve months, a nuisance mitigation plan is not required. He clarified the

purpose of the nuisance mitigation plan and how it works.

Mr. McLeod replied that nuisance mitigation plans are reviewed and approved

by the Planning Commission.

Mayor Taylor reviewed more details of the flow chart. He noted that some

ancillary banquet facilities never stay open later than 11 p.m. and they would

be exempt. If they want to stay open past 11 p.m. once or twice a year, they

can obtain a temporary license. He stressed the main concern is protecting the

residents and the competitive nature of the banquet facilities. It also includes a

provision where the penalties increase, with eventual revocation of the license

if violations continue. He stated he is in favor of the proposal.



ORDINANCE ADOPTION

5. Mayor Taylor explained that this is to adopt the final amendment to the

Appropriations Ordinance for the 2016/2017 fiscal year. He opened the floor

for comments, but there were no comments from the audience.

Moved by Koski, seconded by Ziarko, RESOLVED, to adopt the final

amendment to the Appropriations Ordinance for the 2016/17 fiscal year.


6. CONSENT AGENDA

Mayor Taylor opened the floor to comments from the audience regarding the

Consent Agenda.

Mr. Jeffrey Norgrove – thanked the City for Consent Agenda Item E – in

favor of support of Selfridge Air National Guard Base being selected as

site for the F-35; urged contact with senators and representatives to

support this.

Moved by Koski, seconded by Ziarko, RESOLVED, to approve the Consent

Agenda as presented:

A. To approve the minutes of the Regular Meeting of June 20, 2017, as

presented.

B. To approve payment of the bills as presented: General Fund -

$1,030,555.72, Water & Sewer Fund - $140,485.56, Other Funds -

$2,844,989.72, Total Checks - $4,016,031.00.


C. RESOLVED, to award the bid for water service installations and repairs

and MDEQ-mandated water valve inspections to S&W Excavating Co.,

Inc., 37220 Mound Road, Sterling Heights, MI 48310, for the period July

1, 2017 through June 30, 2019, at unit prices bid and authorize the City

Manager to extend the term one (1) additional year upon mutual

consent of both parties under the same terms and conditions.

D. RESOLVED, to award the bid for the 2017 Local Road Concrete

Reconstruction Program, City Project #17-293, to DiLisio Contracting,

Inc., 3525 Lakepointe, Clinton Township, MI 48036, at a total cost of

$3,878,541 and authorize the Mayor and City Clerk to sign all

documentation required in conjunction with this approval and

authorize a budget amendment in the amount of $1,300,000 from Local

Road Fund Reserves.

E. RESOLVED, to adopt the resolution in support of Selfridge Air National

Guard Base being selected as the site for the F-35 Lightning II Aircraft

Mission.


RESOLUTION A resolution of the Sterling Heights City Council in support of Selfridge Air National Guard Base being selected as a site for the F-35 Lightning II Aircraft Mission. WHEREAS, the F-35 Lightning II aircraft is considered to be the world’s most advanced multi-role aircraft combining advanced stealth capabilities with fighter aircraft speed and agility, fully-fused sensor information, network-enabled operations, and advanced logistics and sustainment;


WHEREAS, the United States Air Force is currently deliberating the final site selection for the F-35 Lightning II Mission; WHEREAS, Selfridge Air National Guard Base, 127th Wing of the Michigan Air National Guard (Selfridge ANGB), along with its Michigan training facilities in Alpena and Grayling, is among five finalists for the F-35 Lightning II Mission; WHEREAS, Selfridge ANGB is the optimal site for the F-35 Lightning II Mission, based upon the following considerations: Selfridge ANGB possesses unmatched facilities, access to airspace

and experienced support systems required for the F-35 Lightening II Mission.

Macomb County, the City of Sterling Heights, and Selfridge ANGB

have a concentration of highly skilled workers that cannot be matched by any other finalist for the F-35 Lightning II Mission.

Southeast Michigan currently leads all competing regions with

nearly $2 billion in defense contracts annually, filling 33% more contracts than its closest rival, proving that it has the necessary defense infrastructure in place to support the F-35 Lightning II Mission.

Macomb County’s Defense Corridor is home to the U.S. Army’s

Tank-Automotive and Armaments Command (TACOM), Tank Automotive Research, Development and Engineering Center (TARDEC), and major defense contractors that create a vibrant and innovative economic climate that is available to the F-35 Lightning II Mission.

The enduring success of the 127th Wing of the Michigan Air

National Guard demonstrates that this is an ideal region for the F-35 Lightning II Mission and ensures its long-term success.

NOW, THEREFORE, BE IT RESOLVED, that the City of Sterling Heights supports Selfridge Air National Guard Base being selected as the site for the F-35 Lightning II Aircraft Mission.


IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Sterling Heights to be affixed this 5th day of July, 2017. _____________________________ Melanie D. Ryska, City Clerk

CONSIDERATION

7. Mayor Taylor stated this is to consider an Employment Agreement between the

City of Sterling Heights and Mark D. Vanderpool, City Manager. He opened the

floor for public comment.

Ms. Sanaa Elias – thanked Mr. Vanderpool for his 13 years of service;

requested Mr. Vanderpool’s information on total benefit package be

provided to citizens.

Mr. Harry Marchlones – good job by Mr. Vanderpool and very deserving

of salary to keep him here.

Moved by Ziarko, seconded by Schmidt, RESOLVED, to approve the

Employment Agreement between the City of Sterling Heights and Mark. D.

Vanderpool and authorize the Mayor and City Clerk to sign the Agreement on

behalf of the City.

Mayor Pro-Tem Ziarko stated Sterling Heights has a great city manager who

loves the City. She referred to a citizen comment about Mr. Vanderpool’s

benefit package, and stated she, along with Councilwoman Schmidt and Mr.

Bahorski, were the ones who negotiated the contract with Mr. Vanderpool. She

stated there were concessions that he gave the City in his first contract, many

of which are still in place. One of those is retiree health care and a defined


pension plan. She explained he has a 401 plan just as employees in the private

sector, and she stated the city managers in some of the other cities mentioned

still have those defined pensions as well as retiree medical benefits. She noted

there were years that the City took money away from him. The City has gone

through the hard times, and shortly after Mr. Vanderpool started with the City,

they experienced the effects of the world economic crisis, and Mr. Vanderpool

helped pull the City through that tough time. She felt they were fortunate by

being able to navigate those waters by asking for benefit and salary

concessions from the employees, and now that things are better, they are

trying to give that back. She felt it is important that Mr. Vanderpool be paid for

his worth, even though she added he is worth more than what they can pay

him.

Councilwoman Schmidt stated this is still under what other cities are paying

their managers. She pointed out that Mr. Vanderpool has seen the City

through some tough economic times, and all the City employees helped them

through the financial crunch. Some of the employees are receiving their

concessions back, so she stated it is time to give some of this back to Mr.

Vanderpool.

Mayor Taylor stated he is very comfortable with this agreement, and he

commended Mr. Vanderpool on the job he has done. He explained it is an

awkward situation, because not often when people ask for a raise is it done on

public access television. Mayor Taylor emphasized that Mr. Vanderpool can be


proud of his record, and the legacy he will leave behind is that he made a huge

positive impact on this community, amounting to a lot more than what the City

can pay him for that service. Mayor Taylor stated they are public servants, and

although Mr. Vanderpool is paid well, but his talents in the private sector could

command more than more than what he is receiving as compensation from the

City.


8. Mayor Taylor stated this is to consider nominations to City of Sterling Heights

Boards and Commissions. He opened the floor for public comment.

Mr. Joe Judnick – nominations where there is a 7-0 vote, and questioned

whether these are rubber-stamped.

Mr. Charles Jefferson – questioned whether appointees can host

political Facebook pages.

Mayor Taylor announced the first nomination for appointment is for the Board

of Review.

Moved by Ziarko, seconded by Schmidt, RESOLVED, to nominate Walter

Blessed for consideration as an appointee to the Board of Review at the July 18,

2017 regular City Council meeting.

Mayor Pro-Tem Ziarko inquired as to whether there will be an expiration date

specified at the next City Council meeting.

Mayor Taylor inquired as to whether an expiration date is needed now.


Ms. Ryska replied they have typically not had a term for nomination, but it will

be specified at the next meeting for the appointment.

Mayor Taylor responded to an earlier citizen’s comment, stating that he did not

vote no on every nomination but he considered each individual before voting.


Mayor Taylor stated the second nomination for appointment is for the Board of

Ordinance Appeals II (Alternate).

Moved by Ziarko, seconded by Schmidt, RESOLVED, to postpone the

nomination to the Board of Ordinance Appeals II (Alternate) to the July 18,

2017 regular City Council Meeting.


9. Mayor Taylor stated this is to consider appointments to City of Sterling Heights

Boards and Commissions. He opened the floor for public comment.

Mr. Charles Jefferson – questioned Council members’ basis for selecting

appointees.

Mayor Taylor stated this is to consider the appointment to the Local

Development Finance Authority, which is a mayoral appointment. He

requested the appointment of Mr. James Ruma.

Moved by Ziarko, seconded by Taylor, RESOLVED, to appoint James Ruma to

the Local Development Finance Authority to a term ending June 30, 2019,

subject to the appointee meeting the qualifications set forth in Charter §4.03

and taking the oath of office within two weeks.



Mayor Taylor stated the next appointment is to the Arts Commission.

Moved by Ziarko, seconded by Schmidt, RESOLVED, to postpone the

appointment to the Art Commission to the August 1, 2017 regular City Council

Meeting.


Mayor Taylor stated the next appointment is to the Beautification Commission.

Moved by Ziarko, seconded by Taylor, RESOLVED, to postpone the

appointment to the Beautification Commission to the August 1, 2017 regular

City Council Meeting.


Mayor Taylor stated the next appointment is to the Election Commission.

Moved by Ziarko, seconded by Schmidt, RESOLVED, to appoint Wayne Davis

to the Election Commission to a term ending June 30, 2019, subject to the

appointee meeting the qualifications set forth in Charter §4.03 and taking the

oath of office within two weeks.


Mayor Taylor stated the last appointment for tonight is to the Historical

Commission.

Moved by Ziarko, supported by Schmidt, RESOLVED, to appoint Cynthia

Appleton to the Historical Commission to a term ending June 30, 2020, subject


to the appointee meeting the qualifications set forth in Charter §4.03 and

taking the oath of office within two weeks.


COMMUNICATIONS FROM CITIZENS

Mr. Jeffrey Norgrove – monitors in Council chambers not showing live

feed; urged people to show respect to City Council members.

Mr. Dennis White – serious accident with fatality on Utica Road;

questioned City’s plan to address aggressive drivers.

Mr. Charles Jefferson – sign at 17 Mile & Van Dyke advertising former

hotel; 47 teachers laid off in Utica Community Schools; questioned

whether campaigning is allowed at SterlingFest; live-feed monitors in

Council chambers.

Ms. Jazmine Early – campaigning allowed at SterlingFest because it is a

public place; American Polish Festival on Friday through Sunday;

opposed to Senate Bills 242, 243 and 244.

Mr. Joe Judnick – traffic laws regarding merging; Mr. Bonner’s job

responsibilities with the City; outcome of Mayor traveling to

Washington DC to get funds for Mound Road; thanked two farms

represented at Farmer’s Market; questioned why commercial vendors

are at Farmer’s Market.

REPORTS FROM CITY ADMINISTRATION AND CITY COUNCIL


Mr. Vanderpool responded to the video system, explaining that the former

system had to be replaced because it was an analog system. They could not

get any parts and it became very expensive to maintain. The quality was also

quickly eroding. The new system provides improved sound, the capability for

the audience at home has been improved, and for those in the Council

chambers when there is a presentation, such as development plans shown on

the table. PowerPoint presentations and videos are much clearer on the

monitors. He emphasized that is the purpose for the monitors, and there is not

a need to show live people on the monitors because the meeting is occurring

in this room and the people can be seen and heard live. He explained the

downside of video technology is that when there is a live audience and the

speakers are being depicted on the monitors in the room, there is a slight delay

between the voice and the actual visual image, and this is an industry-wide

issue. He admitted it will take some time to get used to, but they believe the

benefits will vastly outweigh the downside of not seeing speakers on the

screens in the room.

Mr. Vanderpool addressed the issue of aggressive drivers, and stated the Police

Department works very hard on this. They just completed a campaign on M-

59, where they had undercover officers disguised as construction workers

signaling to officers down the road the people who were texting and driving.

They also have an accident prevention unit that is out on the road every day


looking for aggressive drivers, and thousands of citations are issued every year

for aggressive and distracted driving.

Mr. Vanderpool addressed the sign at 17 Mile and Van Dyke, noting it is under a

Consent Agreement. The former property owner, Sunnybrook, still has the

legal authority to advertise on that sign, and the City is litigating on that,

confident they will ultimately prevail. It is still going through the legal process,

but he hoped the sign can be removed soon.

Mr. Vanderpool addressed the concern about the layoff of teachers in the Utica

Community School District. Those were targeted layoffs where they had lost

funding or grant funding on specific projects. He admitted school enrollment

is decreasing in the Utica Community Schools, and solid schools are needed to

be an attraction for families to move into an area. He stated both Utica

Community Schools and Warren Consolidated Schools are still attractive, but

by reinvesting in the community and in quality-of-life services, they are making

it more attractive for families to continue to live here. He cited many of the

amenities offered in the City, including the amenities offered through the

ReCreating Recreation millage that was thankfully approved last fall by the

voters.

Mr. Vanderpool addressed political activities at SterlingFest are permitted, and

the website outlines where that activity can take place. He stated there are

designated areas, and it is not banned. It has been thoroughly reviewed by


countless examples of case law and many festivals throughout the country, and

the policy in place is a best practice and industry standard.

Mr. Vanderpool addressed an earlier comment about economic development

and whether the money needs to be spent on this resource. He pointed out

that Sterling Heights is a great example of an unbelievable amount of

economic development going on. There are billions of dollars being reinvested

in Sterling Heights, and he cited some of the main developments in the City.

He felt they are now seeing more activity than they have ever seen, possibly in

the City’s history. This results in residents enjoying a very low tax rate, with it

being the lowest in Macomb County, and this is because of the very robust

commercial and manufacturing investments in the City, so he emphasized they

need to continue what they are doing and spending the money on their

economic development team.

Mr. Vanderpool addressed the question about Mound Road, and he assured

they are working very hard to secure the $217 million needed to reconstruct

Mound Road from I-696 to M-59. The first grant has been publicized and the

first application is due within the next sixty days. Their second application will

be due in approximately ninety days, and their defense access road application

is being worked on now. There is a lot of daily activity going on to secure these

funds, not only federal grants, but also state. He advised there is a meeting with

MDOT this Friday to talk about this topic. He hoped they will have some good

news to share next year, although he cautioned it is not a project that will be


completed within the next year. It will be a multi-faceted project that will take

many years, but in the meantime, the County will unfortunately have to

continue to spend $3 million to $4 million each year just to maintain the road.

Mr. Kaszubski stated there are a couple of matters to be discussed in Closed

Session.

UNFINISHED BUSINESS / NEW BUSINESS

Councilwoman Schmidt raised the question of Utica Road and the dangers of

not having by-pass lanes for the left-turn areas. She stated that Utica Road is a

county road so the city has no jurisdiction over putting in those by-pass lanes.

She questioned whether they can call the County back to find out the status of

those by-pass lanes, noting that from Hayes to Van Dyke, there are all gravel

shoulders. She felt the recent fatal accident may have been avoided if the by-

pass lane would have been paved.

Councilwoman Schmidt also noted numerous phone calls and emails she and

other council members received regarding the fireworks over the last couple of

days. She felt the state legislators must do something about this, and she

implored everyone to get in touch with their representatives and stress to

them the importance of the dangers going on because of the fireworks law at

the state level. She also received calls about the Chinese lanterns landing on

her home. She reminded there is an ordinance in Sterling Heights that

prohibits the sale and launching of those lanterns. She noted the resident who

called her lives on the border of Troy, and they have no control over what is set


off in Troy and happens to enter Sterling Heights. She hoped the residents of

Sterling Heights are adhering to the ordinances.

Councilwoman Schmidt stated she met a boy scout who is a Sterling Heights

resident who was looking for a community service project. The City provided

him a trash picker and a garbage bag, and since he lives near Avis Park, he

cleaned it up and ended up with twenty bags of trash. She appreciated his

hard work.

Mayor Pro-Tem Ziarko stated she did not feel the state will repeal the fireworks

law, but she hoped they will give the communities more local control.

Councilwoman Sierawski thanked the speaker for mentioning the item on the

consent agenda dealing with Selfridge. She stated this area is fortunate to

have a National Air Guard Base so close, where her husband flew out of for

thirteen years. She stressed it is a wonderful base, and they need to support

the F-35 aircraft. She urged everyone to call their state and national reps to

support this because it is important, and she pointed out that they can both

build the parts and put together this aircraft, referring to this area as the

“arsenal of the country.” Selfridge is a wonderful place to keep the area safe

and to keep the United States safe. She stressed they need to get these planes

and keep the ones they have. She reminded that August 19th through 20th is

the Air Show at Selfridge, and the Air Force Thunderbirds will be there, and she

urged everyone to attend.

ADJOURN


Moved by Taylor, seconded by Ziarko, to adjourn the meeting and go into

Closed Session.

Yes: Taylor, Ziarko, Koski, Lusk, Schmidt, Shannon, Sierawski.

No: None. The motion carried.

The meeting was adjourned at 9:38 p.m.

MELANIE D. RYSKA, City Clerk

Documents

Regular City Council Meeting - Sterling Heights, Michigan