MINUTES ST. CLAIR SHORES CITY COUNCIL MEETING September 2, 2014

MINUTES ST. CLAIR SHORES CITY COUNCIL MEETING September 2, 2014 Regular Meeting of the City Council, held in the Council Chambers, located at 27600 Jefferson Circle Dr., St. Clair Shores, Michigan. Present: Also Present: Mayor Kip Walby, Council Members John Caron, Ronald Frederick, Peter Rubino, Candice Rusie, Anthony Tiseo, and Chris Vitale Interim City Manager Michael Smith, City Clerk Mary Kotowski, Director Chris Rayes, and City Attorney Robert Ihrie 1. CALL TO ORDER, ROLL CALL AND PLEDGE OF ALLEGIANCE Mayor Walby called the meeting to order at 7:00 p.m. Ms. Kotowski, City Clerk, called the roll and a quorum was present. The Pledge of Allegiance was said by all. 2. PROCLAMATIONS & PRESENTATIONS PRESENTATION BY LAC STE CLAIRE ART COMMITTEE b. Request for approval of Lac Sainte Claire Art Fair at Veterans Memorial Park September 13 and 14, 2014 from 10 a.m. to 5 p.m. Daily Liz Munger, Sara-Rose Melby, and Dave Martin, Executive Board Members of the Lac Sainte Claire Fine Art Fair stated that the Lac Sainte Claire Fine Art Fair is the major fundraiser for the Ms. St. Clair Shores Scholarship Program. The art fair will take place on September 13 th and 14 th from 10 a.m. to 5 p.m. both days at Veterans Memorial Park. This year proceeds from pie sales will go to Wigs 4 Kids. The DIA will have an art tent for children and the Ann Arbor Art Works will have a hands on cardboard cutout activity with the subject, Why I Love Michigan. Moved by Council Member Rusie, seconded by Council Member Rubino to approve the Interim City Manager s recommendation for the Lac Sainte Claire Art Fair at Veterans Memorial Park on September 13 and 14, 2014 from 10 a.m. to 5 p.m. daily. Ayes: All 7 a. Presentation of Local Artist work to City Ms. Munger mentioned that they brought with them a piece of art that exemplifies what will be at the art fair this year which includes paintings and pottery they were donating to the City. The painting she presented is of the William Clay Ford. She also presented a check for Parks & Recreation. Ms. Melby said they appreciate the use of the park and it s a great way for residents to see everything at the art fair. Mr. Esler said the art fair is a great tradition and brings a lot of people into St. Clair Shores. The Lac Sainte Claire Fine Art Festival does an outstanding job and things keep getting better. He thanked the board members for the check. Mayor Walby stated that the Police Department now has new Support Services hours. Police Chief Woodcox mentioned that the department used to be named the Records Division. The new Support Services hours, without overtime, will be on the 1 st and 3 rd Monday of the month from 4 p.m. - 7 p.m., excluding holidays. Mayor Walby indicated that he would like to see these new hours on the calendar going forward so residents will be informed. 3. AUDIENCE PARTICIATION ON AGENDA ITEMS (2 MINUTE TIME LIMIT) Jim Goodfellow, St. Clair Shores resident, Agenda Item #6a, said that Mr. Smith has done a very good job stepping in as City Manager over the last several years and he has earned the City Manager job. Ann Powell, St. Clair Shores resident, Agenda Item #6a, stated that she is in favor of awarding a contract to Mr. Smith as City Manager. He handles many responsibilities in a professional manner and asked if there really is a better candidate than him City Council Meeting September 2, 2014 Page 1 of 12

Agenda Item 3 (cont d) for the City Manager position. She told City Council that it is not a sign of weakness to change your position from the last City Council meeting. Mr. Smith is a viable candidate and hopes the City does not go through the interview process again. Duane Michno, St. Clair Shores resident, Agenda Item #4 & #6a, said that the City had a prior opportunity to approve a membership with the Macomb County Chamber of Commerce, but it was turned down. He hopes City Council votes in favor of it this time with the cost of only $175. He mentioned that in regards to the vision of the City, City Council should have the visions and Mr. Smith should see them through. Mr. Smith has done a good job in everything City Council has asked of him and he deserves the position. Sharon Lee Wright-Guswiler, St. Clair Shores resident, Agenda Item #6a, said City Council has received an email from her of her opinion regarding the City Manager position and that many residents preferred the 2009 external search approach of a City Manager. Many residents signed a petition that City Council should conduct a complete and public interview process which includes Mr. Smith before any contract is approved tonight. David Deacon, St. Clair Shores resident, Agenda Item #6a, stated he is not opposed to Mr. Smith having the job, but the process that has been instituted. He said we paid Mercer to hire Mr. Ludos which came with a guarantee that they will conduct a free search in the event that Mr. Ludos does not stay for the specific time period in the contract. He said we need to spend our money wisely, as there may be a better candidate. Mike Cook, St. Clair Shores resident, Agenda Item #6a, read two statements on the process regarding the City Manager position. He said Mayor Walby should not be the vote on a divided Council and the process should be done on a national search level. The hiring process should be the same for all. Erin Stahl, St. Clair Shores resident, Agenda Item #6a, said many residents have collected signatures on petitions asking City Council to have an open interview process for the City Manager position. She mentioned that she hopes this item will be tabled and the City Manager should not be afraid of an interview process. She said the initial search cost $20,000, but this time it is free and suggested to City Council to conduct the search. Dave Rubello, St. Clair Shores resident, Agenda Item #4 & #6a, said his association with Mr. Smith has been very professional and he is qualified for the City Manager position. He said he is a big fan of the Macomb County Chamber of Commerce and they have always supported the City of St. Clair Shores. He hopes City Council sees their track record that they did not abandon the City. Grace Shore, Chamber Executive Director, Agenda Item #4, said they are fulfilling their role to support and provide services to the City of St. Clair Shores. They have recently had two events here last month and are already here as a goodwill gesture. Kathleen Zenisek, St. Clair Shores resident, Agenda Item #4, mentioned she works at First State Bank as Director of Marketing and is speaking in support of the Macomb County Chamber. She believes in the chamber because of professional development opportunities, networking, and community involvement. She told a story about First State Bank and how they became acquainted with trustees in Clinton Township using the Macomb County Chamber of Commerce. James Kaza, Clinton Township resident, Agenda Item #4, said he is a member of both the Nautical Mile Merchants Association and Macomb County Chamber of Commerce. The Macomb County Chamber of Commerce has helped him develop relationships throughout Macomb County and they promote all businesses in St. Clair Shores. 4. REQUEST FROM TWO COUNCIL MEMBERS FOR CONSIDERATION OF MEMBERSHIP TO THE MACOMB CHAMBER OF COMMERCE At the City Council Meeting of August 18, 2014, Council Member Frederick asked Council to consider membership to the Macomb County Chamber of Commerce at the next meeting and it was supported by Council Member Rubino. Mr. Frederick said things are getting better and business owners are looking for additional locations. He said we need to see what they can do for us and believes it s time we step up and recognize this chamber. Mayor Walby said even though they are not members of the chamber, they have been here the whole time supporting the businesses and he does appreciate that. Mr. Rubino stated the chamber helps to promote our businesses. They do a very good job and what impresses him the most is when City Council voted not to become part of the chamber, they did not stop promoting our businesses. He was in favor of becoming a member then and is for it now. He said we will receive a great benefit at a very low cost. City Council Meeting September 2, 2014 Page 2 of 12

Agenda Item 4 (cont d) Mr. Vitale said he was a no vote the last time around, but has seen the work they have done in the last year and how they continued to promote the City. He motioned and asked that the City rejoin the Macomb County Chamber of Commerce. Motion to Reconsider Moved by Council Member Vitale, seconded by Council Member Rubino to reconsider rejoining the Macomb County Chamber of Commerce. Ayes: Nays: Frederick, Rubino, Tiseo, Vitale, Walby Caron, Rusie Mr. Ihrie stated that a motion to reconsider is not required, but Mayor Walby asked that they continue with a motion to reconsider. Mr. Tiseo said he was also a no vote last time, but has learned in the last few years that we are global and he now supports the Macomb County Chamber of Commerce. Ms. Rusie stated she was a no vote last time, because she felt it was a conflict of interest for a municipality to belong to a Chamber of Commerce, the same type of membership businesses are in. Chambers of Commerce typically lobby municipalities, or levels of government on behalf of the businesses. The chamber also rates on behalf of its membership in getting candidates on a pro-business type basis and she feels engaging in politics that way with the City as a member on behalf of a membership which would include the City, is also a conflict of interest. She asked what benefits would businesses in the City of St. Clair Shores receive that businesses in our City don t already get or get on their own behalf of the chamber. What benefit would the City get if we become members? Mr. Vitale said that in regards to the conflict of interest, they are lobbied as Council Members all the time by residents and businesses and they say yes more often than they say no. Ms. Rusie said they are lobbying on behalf of their membership and if that includes them, that is a conflict. Mayor Walby said Council is supporting an organization that supports our businesses and that is why he believes they are worthy of it. He supported it then and he supports it now. Ms. Rusie said she looked at their website for the benefits of membership and saw that there is publishing discounts for C&G Newspapers which is buy an ad and get an ad free. She asked if this would apply to them. Mr. Caron said we have other business associations within the City that we belong to such as MML (Michigan Municipal League) and SEMCOG (Southeast Michigan Council of Governments). Those are the official municipal routes of organizations that work together with other cities and he doesn t feel the City s businesses benefit in having them join the Macomb County Chamber of Commerce and spending the money. He stated he still objects to the membership. Mayor Walby said the chamber does help promote events in the City and has attended meetings on a quarterly basis at Roy O Brien Ford. He said the chamber is driven and they work very hard. Ms. Rusie asked if the chamber people attending tonight could answer her question regarding what benefits the City could take advantage of similar to the ones businesses do. Mayor Walby said that Mr. Smith will talk to the chamber on this issue. Moved by Council Member Frederick, seconded by Council Member Vitale to approve the Interim City Manager s recommendation to approve the annual membership of the Macomb County Chamber of Commerce. Ayes: Nays: Frederick, Rubino, Tiseo, Vitale, Walby Caron, Rusie 5. REQUEST FROM OUR LADY OF HOPE PARISH TO HOLD THEIR ANNUAL FAMILY FUN FESTIVAL THE WEEKEND OF SEPTEMBER 12 TH SEPTEMBER 14 TH a. Annual Festival September 12 from 6 p.m. 1 a.m.; September 13 from Noon to 1 a.m.; and September 14 from Noon to 10 p.m. City Council Meeting September 2, 2014 Page 3 of 12

Agenda Item 5a (cont d) Jean and Jerry Gloster represented Our Lady of Hope Parish and spoke about their upcoming Family Fun Festival which will begin with a parade. They cook doughnuts on-site, have home cooked dinners, entertainment, Vegas tent, raffle, etc. Moved by Council Member Rubino, seconded by Council Member Rusie to approve the Interim City Manager s recommendation for Our Lady of Hope Parish Annual Family Fun Festival on September 12 from 6 p.m. 1 a.m.; September 13 from noon to 1 a.m.; and September 14 from noon to 10 p.m. Ayes: All - 7 b. Annual Festival Parade on September 12 at 5:30 p.m. starting at Gaffke Park turning left on Gaffke to Beste, to Meier, to Rockwood and left to St. Germaine s Moved by Council Member Rubino, seconded by Council Member Rusie to approve the Interim City Manager s recommendation for Our Lady of Hope Parish Annual Festival Parade on September 12 at 5:30 p.m. starting at Gaffke Park turning left on Gaffke to Beste, to Meier, to Rockwood and left to St. Germaine s. Ayes: All - 7 6. BIDS/CONTRACTS/PURCHASE ORDERS a. Approval of the New City Manager contract Mr. Ihrie stated he worked with Mr. Smith to put the contract together. The contract presented is a two-year renewable contract requiring Mr. Smith to live up to his responsibilities that are detailed in the City Charter. Mr. Smith requested some period of time of protection, if terminated, which declines as the contract ages. If Mr. Smith were hired, he would have a two-year contract that is renewable on each anniversary date of the contract. If the City were to hire Mr. Smith and terminate him six months later, he is entitled to 18 months severance pay. If City Council terminates him 364 days after he was hired, he would be entitled to one year and one day of severance pay, however, on the very next day, the first anniversary of the contract, it would automatically renew for a two year period. If he were terminated the day after the first renewal period of two years, he would be entitled to one year and 364 days of severance, without cause. By statute, the City Council never gives up its authority, and its right and its option to hire and terminate the City Manager. The State Statute allows for a contract with a severance provision in it. The proposed contract, in Section C, states that the contract will automatically renew for two years on the 1 st anniversary date and the 2 nd anniversary date. On the 3 rd anniversary date of the contract, it will renew for one year and on the 4 th anniversary date it will renew for six months. The most that the City would ever pay Mr. Smith would be one year and 364 days of severance which would be if he was terminated the day they hire him. The least they would have to pay the City Manager would be zero dollars which would be later in the contract, after the six months of the renewable contract, in the fourth year of the contract. The contract is front loaded with severance pay and reduces as the contract continues until it actually gets to zero. The severance package only includes salary and health care. It does not include things such as vacation, sick days, car allowance, retirement, etc., if the City Manager is terminated without cause. The City Manager could be terminated for cause at any time and cause is defined as honesty, criminal convictions, etc. If he is terminated with cause, there is no severance of any kind. Mr. Ihrie said a question has arisen as to whether or not the City, prior to a renewal date, has the option to not renew the contract. Mr. Ihrie stated that the City Council does not have the option not to renew the contract. The City Council has two options. First, they can allow the contract to automatically renew on the annual date or second, to terminate. The City Council does not have the option not to renew the contract because if they had the option to not renew it prior to an annual renewal date, it would cause the contract to be a losery and not provide the benefit to the employee that the contract is intended to provide. The contract does call for a car allowance, disability insurance, a performance evaluation at least once a year between July and September, vacation, sick leave, holidays, health insurance, term life insurance, etc. The only thing that has changed from the prior contract is the automatic renewals and the termination time periods. Mr. Tiseo said the only issue he has with the contract is that it reads like a four-year contract with a two-year option in his favor. He said if City Council, over the next four years, does not want to follow Mr. Smith s direction and does not have just cause, it becomes very expensive. He thinks a one-year renewable contact will work in the same way. He will vote for a one-year contract to give City Council more control over issues that may arise. City Council Meeting September 2, 2014 Page 4 of 12

Agenda Item 6a (cont d) Mr. Ihrie said that many people think of a two-year contract as if 18 months go by, then if a termination takes place, the City owes six months. That is not how this contract works and he reiterated how the contact does work. Mr. Vitale asked if City Council was not happy with Mr. Smith s job performance, is this just cause for termination. Mr. Ihrie stated no. He asked if the severance pay would run out any time before the four years. Mr. Ihrie stated no. At four years it is six months severance, at four and a half years it would be zero. Mr. Vitale said this could be considered a four and a half year contact and feels this is excessively long. Mr. Ihrie said other than to say that for four and a half years, there would be some sort of severance owed. Mr. Vitale said he has a problem with this and is more comfortable with a 1-year contract that did not automatically renew. He could see an 18-month contract that does not automatically renew. He said for the City s benefit, we place managers under contract so they are not applicable to being headhunted. Ms. Rusie asked how this contract in terms of termination clause, severance pay, and automatic renewals compares with the last two contracts we entered into. Mr. Ihrie said Mr. Ludos was six months and Mr. Hughes was 1 or 1 ½ years. She said she shares Mr. Tiseo s concerns on this issue. Mr. Caron mentioned the only difference in this contract from previous contracts is the severance pay. He asked if City Council had clear performance goals that the City Manager agreed to and did not deliver on, can performance be used as cause for termination, if properly documented. Mr. Ihrie stated yes, and it would depend on what the instructions and the policies were that were not being carried out. Mr. Vitale said Mr. Ludos was the first City Manager to implement annual performance reviews for department heads. He asked if this will be a policy that will continue under Mr. Smith. Mr. Smith said he was working with Mr. Ludos on the performance evaluation and drafted the policy he was going to use. He said he would look for the same system to be utilized for administration as a whole as he plans on using for the department heads, and he would ask for them to use it on their employees. Mr. Vitale said that when Mr. Smith became a candidate for this job, they eliminated everyone else from competition and he does not think that is right. He said because of that, he cannot vote on this contract. Mr. Frederick stated that Mr. Smith has done a terrific job and has done everything he was asked of. He has stepped into this position three times, and every time it worked fine. The last two City Managers that resigned and were gone in a short period of time. What he is looking for is a little more stability. He said it is extremely important that we give Mr. Smith good direction, but he needs to keep the ship on course. He supports this contract because it is saying the right thing to residents and is not a waste of valuable time. Mr. Tiseo said he is more concerned about the process. We don t have a good track record, and we are going to sign a two-year contract. He does not understand this and does not support it. We have always protected the City in situations like this, but this may cost a lot of money. Mr. Vitale said City Council does set goals for the City and they are a part-time City Council, but the contract puts the hand cuffs on them and future councils. Ms. Rusie said she understands the need for stability and you have to plan for the worst case scenario when you enter into a contract, but she has some issues with the structure of the contract. Mr. Caron mentioned that when you bring someone in from the outside, you don t have a direct relationship with that person and have not seen how they have done the work. In this situation, we have seen Mr. Smith s work. During Mr. Hughes employment as City Manager, he stopped asking questions of Mr. Hughes and started going to Mr. Smith. He may not have always gotten the answer he wanted, but he got an answer. He said he feels comfortable with the contract and knows Mr. Smith cares deeply for the City and is conscience of his performance. Mr. Rubino said he agrees with Mr. Caron word for word. He said they will never get to know anyone when they interview them for a couple hours and they will not get to know the candidate as they know Mr. Smith. He said he has gone to the Assistant City Manager to get things resolved. There was not one issue he went to that Mr. Smith could not help him with. It may have not always been perfect, but it could be worked out. The vision is for City Council to set the course, but Mr. Smith sails the ship. He said this issue is more in the open as he has acted as City Manager three times. You may not like him so you don t want him as City Manager, but he has always helped in every situation. He is not worried about the severance whatsoever. He supports Mr. Smith as he helps out and represents the people. Mr. Rubino City Council Meeting September 2, 2014 Page 5 of 12

Agenda Item 6a (cont d) said all he wants is the resident to be treated fairly and Mr. Smith gives the residents a fair shake and he has always delivered. He said he has never received more contact from residents who support Mr. Smith. Mayor Walby stated he still supports Mr. Smith. Mr. Smith has been here for three or four years and the person they are looking for is already here. We don t always agree, but we try to make things better for the community and he has done the job in the past. He stated the vision comes from City Council and it is given to Mr. Smith. Moved by Council Member Caron, seconded by Council Member Rubino to approve the Interim City Manager s recommendation to approve the New City Manager contract. Ayes: Nays: Caron, Frederick, Rubino, Walby Rusie, Tiseo, Vitale Mr. Smith said he has talked to everyone on City Council and said that all the Administrators work with City Council and bring ideas to them. They make the decisions and decide what direction to take. He is very lucky to work with many great people. He said as a community, we need consistency and he is willing to take that risk. He hopes to never give City Council cause to be terminated. b. Request to approve sale of vacant parcel at 22712 Stephens This property was a former blight property acquired by the City. A house was demolished by the bank prior to acquisition. The previous offer of $9,200 expired due to the inability to contact the buyer for the closing. The current buyer is to meet all stipulations of the purchase agreement, including the construction of a new house within one year. Mr. Rayes said the proposed house will be a 1,900 square foot, two-story house with a detached garage and will be owner occupied. The offer on the parcel is $9,000. Mr. Vitale said we just received a full price offer for a parcel that was not as close to the Nautical Mile and was 50 wide. He asked if there is a reason why we would not get a full price offer on this one. Mr. Rayes said we received $11,000 for Florence and Euclid, both of which are 50 wide. Mr. Rayes said the difference is the makeup of the comps in the area. Mr. Rayes said the Florence property voted at the last City Council meeting now has a proposed change in plan as they are changing from a house with an attached garage to a two-story colonial with a detached garage. Mr. Rayes stated it was put back on the market in April, but was originally put up in October or November 2013, then all the lots came down as part of the 40 foot question, then put back up. Mr. Frederick said the cleanout was about 8 tall. Mr. Rayes said part of the condition of the sale was he wanted to salvage the old sanitary lead. He brought some equipment out, dug it up and televised it, but did not record it. He said they require a recorded video of it, so they can verify its condition. A riser was put on it so they can stick the camera down the riser. Moved by Council Member Rubino, seconded by Council Member Caron to approve the Interim City Manager s recommendation to approve the sale of vacant parcel at 22712 Stephens in the amount of $9,000. Ayes: Nays: Caron, Frederick, Rubino, Rusie, Tiseo, Walby Vitale 7. CONSENT AGENDA All items listed on the consent agenda are considered to be routine and will be enacted by one motion and approved by a vote of City Council. There will be no separate discussion of the items unless the Mayor and or a Council Member so requests, in which event the item will be removed from the general order of business and considered under the last item of the Consent Agenda. Mr. Frederick asked to remove item 7c, Progress Payments. Moved by Council Member Rubino, seconded by Council Member Caron to approve the Consent Agenda items a f, SEPARATING Item c, which include the following, as recommended by the Interim City Manager: City Council Meeting September 2, 2014 Page 6 of 12

Agenda Item 7 (cont d) a. Bills August 21, 2014 $4,733,043.03 Resolved to approve the release of checks in the amount of $4,733,043.03, for services rendered, of the report that is 28 pages in length and of the grand total amount of $4,733,043.03; $2,561,828.43 went to other taxing authorities. b. Fees - none d. Approval of Minutes Resolved that the following minutes be approved as presented: Minutes Meeting Date City Council June 16, 2014 City Council July 7, 2014 City Council July 21, 2014 City Council August 4, 2014 e. Receive & File Boards, Commissions & Committee Minutes Resolved that the following minutes be received and filed: Minutes Meeting Date Council Sub-Committee on Boards, May 27, 2014 Committees & Commissions Cultural Committee July 9, 2014 Dog Park Committee April 3, 2014 General Employees Pension Board June 17, 2014 Historical Commission April 2, 2013 Historical Commission May 7, 2013 Historical Commission June 4, 2013 Historical Commission October 1, 2013 Historical Commission November 5, 2013 Historical Commission December 3, 2013 Library Board March 20, 2014 Library Board May 15, 2014 Library Board July 17, 2014 Memorial Day Parade Committee February 6, 2014 Memorial Day Parade Committee February 20, 2014 Memorial Day Parade Committee March 6, 2014 Memorial Day Parade Committee March 20, 2014 Memorial Day Parade Committee April 3, 2014 Memorial Day Parade Committee April 17, 2014 Memorial Day Parade Committee May 1, 2014 Memorial Day Parade Committee June 5, 2014 Planning Commission May 28, 2013 Planning Commission September 24, 2013 Planning Commission October 22, 2013 Planning Commission March 11, 2014 Planning Commission April 22, 2014 Sign Arbitration July 24, 2014 Waterfront Environmental January 15, 2013 Waterfront Environmental February 19, 2013 Waterfront Environmental July 15, 2013 Waterfront Environmental August 20, 2013 Waterfront Environmental January 21, 2014 Waterfront Environmental February 18, 2014 City Council Meeting September 2, 2014 Page 7 of 12

Agenda Item 7 (cont d) f. Recommendations from the Council Sub Committee on Boards, Commissions and Committees Resolved that the following reappointments be received and filed: 1. Recommendation to Mayor and Council to Reappoint the following: Name Committee/Commission Term-Ending Date Bill Miller, Jr. Activities Committee 09/30/17 Lee Bertolo Beautification Commission 12/31/17 Lillian Claycomb Beautification Commission 12/31/17 Christine DenBaas Beautification Commission 12/31/17 Margaret Armstrong Cool City Committee 09/30/16 Joe Fresard Cool City Committee 09/30/17 William Gorncy Dog Park Committee 12/31/17 Augusta Eller Employees Civil Service Commission 07/01/17 Harold Schwartzenberg Golf Course Committee 09/30/17 John Cilluffo Historical Commission 12/31/17 Jeanne C. Srigley Historical Commission 12/31/17 Mary (Kay) Van De Graaf Historical Commission 12/31/17 Glenda Bobolts Older Persons Advisory Committee 09/30/17 D. Scott Paladino Parks & Recreation Commission 12/31/16 Kathe Travis SCS Memorial Day Parade Committee 12/31/17 Kathy Nixon Waterfront Environmental Committee 09/30/17 Joe St. John Waterfront Environmental Committee 09/30/17 Lee Bertolo Zoning Board of Appeals 10/01/17 Peter Stellas Zoning Board of Appeals 12/31/17 Resolved that the following reappointments be received and filed: 2. Recommendation to Mayor to Reappoint the following: Name Committee/Commission Term-Ending Date Erik Anderson Communications Commission 09/30/17 David Martin Communications Commission 09/30/17 Diana J. Rascano Communications Commission 09/30/17 Gerrit J. Ketelhut, Jr. Compensation Commission/ 10/01/21 Economic Development Corporation 10/01/20 Duane Michno Corridor Improvement Authority 12/31/17 Randy Springfield Fence Arbitration Committee 06/02/17 Monie R. Smith Library Board 12/31/19 Kathryn Hanson Planning Commission 12/31/17 David S. Schelosky Planning Commission 12/31/17 Joseph E. Claycomb TIFA/Brownfield Re-Dev. Authority 11/18/18 Richard Widgren TIFA/Brownfield Re-Dev. Authority 11/18/18 Michael P. Monaghan Water Resources Dev. & Advisory Board 10/29/17 Resolved that the following resignations be received and filed: 3. Recommendation to Accept with Regret the following Resignations: Name Marianne Courey Tim Johnson Committee/Commission Animal Care & Welfare Committee/Dog Park Committee TIFA/Brownfield Redevelopment Auth. Ayes: All 7 City Council Meeting September 2, 2014 Page 8 of 12

Agenda Item 7 (cont d) Separated Consent Item 7c c. Progress Payments Mr. Frederick said this has to do with Bernco and some of the punch list for the Court Building. He said it looks like we are not approving payments for some of the items. Mr. Rayes said the project is just about complete and the outstanding issue is costs incurred by the City for not completing the project on time. They are recommending withholding partial payment of those expenditures until they can go through the process to determine if they are the responsibility of the contractor. The City believes they are. Mayor Walby said they have a meeting set for this week with Administration and the general contractor. Mr. Frederick asked if we are hitting them up for rent because of how long it took for project completion. Mr. Smith said these are things we will have to negotiate. Moved by Council Member Frederick, seconded by Council Member Caron to approve payment of the following Progress Payments as recommended by the Interim City Manager as follows: Ayes: All - 7 Italia Construction, Inc. $44,704.46 Bernco Incorporated $52,377.52 8. UPDATES AND FOLLOW-UPS FROM COUNCIL MEETING Flooding Mayor Walby said there is still time for residents to submit a claim form. Mr. Smith said that the county, state police and FEMA were in the City and their purpose was to verify claims the City was receiving. There is a meeting tomorrow at 10 a.m. with the County Disaster Team. He reminded residents to get their claim forms in as soon as they can. Chapoton Apartments Mayor Walby said people are still in the apartments, but they should have been out August 1 st and it is the landlord s responsibility to tell their residents what is happening. He said Mr. Rayes needs to talk to the demolition contractor. Mr. Rayes stated they are in the process of finalizing the agreement. Mr. Ihrie said they were in contact with their attorney and they are getting a headcount of the number of people still there. They are heading towards an October/November demolition. Local Streets Mr. Rayes said they will be paving the two southbound lanes of Little Mack within the next two weeks. They will be paving the rest of Princeton and Gladstone in the next week on the other side. In regards to the patch program, the rain has put them back and it will not be until a week from Monday before the contractor is in town. Wall in front of City Hall Mayor Walby said the wall in front of City Hall is coming apart. He said there are people s names on there and we need a plan for repair in 2015. Mr. Smith said the wall was put up in a flood plain and there is a drainage issue on the front lawn. They will put some drainage in and once it is improved, the wall can be repaired. Dredging Mr. Smith said testing was done last week and the county is moving forward. Mr. Smith should have an update by the end of the week. Splash Pad Mayor Walby said they were looking to see if they needed certified life guards, but they resolved that issue and the splash pad has been open the entire time. He said we do not need them, but do need specific people to get training regarding chemical usage. Detour Homes Mayor Walby asked about cleaning up and the trees in the area. Mr. Smith said the woman with the large tree has given permission to get into the house. They will coordinate a time and then communicate with the banks who own the home. Follow up to Budget Mayor Walby said they need answers in regards to the street sweepers contracted out, police roof, the carnival account money moved to the ice arena and what they are going to do with the money. He said he wants to understand more about that issue. He said Mr. Ihrie was tasked with AT&T, about the walking track and the Brys area and getting that cleaned up. He also wants to understand the status on the open positions of the Controller and the CDBG/Rehab individual. He also asked about the Facebook Terms of Use. He understands that many Terms of Use have come to the Communications Commission and they have made a recommendation to bring it to City Council. Mr. Smith said on September 10 th, they are asking that the Terms of Use goes back to the Communications Commission and if there are changes, it be brought back to City Council. City Council Meeting September 2, 2014 Page 9 of 12

9. COMMENTS BY INDIVIDUAL COUNCILPERSONS Council Member Rusie congratulated Mr. Smith on his new position. She had issues, but believes Mr. Smith will do a good job for City Council and residents. She said we now have a position open for Assistant City Manager and HR and would like to hear what the next steps would be. Mayor Walby said City Council should provide input about the next Assistant City Manager. The Made in Michigan Festival will be on September 19 th and 20 th as a fundraiser for the Senior Center Meal Program. Council Member Rubino said in regards to a home on Pleasant Street, the resident stated in an initial email that the house was unsecured. Mr. Smith stated it will be checked out tomorrow. He asked in regards to the street flooding yesterday, are we going to video tape the lines this year on streets like Beste, Edgewood, Marter, etc. Mr. Smith said they have been moved to the top of the list and Mr. Babcock is working on getting the SAW Grant money turned loose. Mayor Walby said we know the issue on Beste. Mr. Smith said they will be getting a report on the Paloma area from AEW. Mr. Rubino said a resident asked him if he was lying now or in 2009 in regards to hiring processes. Mr. Rubino mentioned they found Mr. Hughes and Mr. Ludos through a national search. He asked, if we do searches for people, but find someone from the inside, do you really want to miss out on them? He stated no one was lying. Council Member Tiseo congratulated Mr. Smith. He asked what is the process of asking for some alternates on the Parks & Recreation Commission. Mayor Walby said it was on the last agenda, but Mr. Frederick could not attend the last meeting and they have made the decision to wait for a full body to make a decision about the issue. Mr. Tiseo said it is an older group and has a good mix of people, but is hard to get things done with the struggle of getting large groups of people to the meetings. The want to make sure they have enough members to make a vote. St. Isaac Jogues Festival will be this weekend on Friday, Saturday, and Sunday. Council Member Frederick congratulated Mr. Smith on his new position. He thanked Mr. Rayes for getting the mouth of Little Mack completed in time for the car cruise. The Wigs 4 Kids Gala will be held on September 18 th at Barrister Gardens. Contact 586-808-3478 for more information. Cops for Kids is having their 11 th Annual Dinner Cruise on September 11 th. Cost is $85 per person. Contact Officer Kimm on 586-445-5332 or go to scscops4kids.org for more information. He asked about the number of Damage Assessment Reports turned in. Mr. Haag mentioned that as of close of business today, 540 claim forms have been submitted totaling $3.8 million or approximately $7,040 per claim. The deadline for turning claims in is September 25 th. Mr. Frederick mentioned Library announcements and that the Library will be closing for a few weeks in December for renovations. Council Member Vitale congratulated Mr. Smith on becoming City Manager. He asked if anyone has taken action on the dead tree at the rental property which he related in an email. Mr. Rayes said they are working on another house west of the one in question, but he will verify it in the morning. Mr. Vitale said the City was to do a cleanup at the house east of the one he just mentioned. A resident said the house was filled with garbage, etc. He asked when we do a cleanout of a vacant property or pursuing demolition on, do we just stop at the grass cutting or can we go around the base of the house and clean out the garage. Mr. Ihrie said if we have a court order, we can, but if we don t have access to it by court order, but feels it is a health hazard, we could do it as well. Mr. Ihrie said we could go in if the garage is filled with garbage, but we need a department head to indicate it is a health hazard. The 18 th Annual Car Show is scheduled for September 21 st from 10 a.m. 4 p.m. at Blossom Heath Park. Council Member Caron asked Mr. Haag to go through the timing regarding FEMA declaring Southeast Michigan a national disaster area. Mr. Haag said they ll make a recommendation to the Governor s office next week, and he requests a declaration from the president. FEMA said they are about one month away before the process goes all the way through. The City is shooting for assistance for the residents such as loans, grants, federal aid, etc. If granted, FEMA will set up a hot line and residents would have to call in and submit their documentation. Mr. Haag said they will keep everyone posted on the City Council Meeting September 2, 2014 Page 10 of 12

Agenda Item 9 (cont d) website. Mr. Caron asked if we can write up instructions for residents and mail them out. Mr. Haag said they asked for email addresses on the claim form. He said Chalon Street now floods with every storm and the systems are still filled with water. Mr. Smith said the ground is probably saturated and it is filling the system. Mr. Caron asked about the punch list items from the last meeting that are in dispute with the contactors from the water main replacements from last year and what progress was made. Mr. Rayes said he has a meeting with the company to finalize the one for Edgewater and 11 Mile/Port and will get an update from Mr. Chown on the Pieprzak punch list. Mr. Caron asked at what point can we make threats of performance bonds since construction is nearing an end. Mr. Smith said they will get with Mr. Ihrie this week or next week to get a game plan. Mr. Caron said he wanted to correct a few statements regarding the Mercer Search Agreement. He said we still have to pay the expenses, but not their fee. He said the search was not $40,000, but $20,000 and the $6,000 - $7,000 were the expenses. 10. CITY MANAGER S REPORT - none 11. AUDIENCE PARTICIPATION (5 minute time limit) Ralph Kosal, St. Clair Shores resident, stated that when he had spoken to Mr. Smith in the past, he not always walked away happy, but was always told the truth. He believes Mr. Smith is the right person for the job. Paul Zappa, West Branch, Michigan resident, spoke about his brother, Joe, who has passed away. He said he has been unfairly treated in regards to his brother s house located in St. Clair Shores. The house was deemed inhabitable and Mr. Zappa s brother was forcibly removed. Mr. Zappa said he returned the keys to the City and tried to work with Community Development in regards to his brother s house, but could not get any cooperation. Mike Lavis, St. Clair Shores resident, continued with the information from Mr. Zappa. He said he has been working on the house and it is in good condition. He asked why would anyone tear a house down if it is in good condition. Mayor Walby asked Mr. Lavis to give the letters to the City Clerk and she will get copies to City Council. Ted Huebner, St. Clair Shores resident, 700 harbor place, said he is representing the SHELL (Shores Homeowners Enhancing Lakefront Living) group. The group tries to maintain the quality of life living in St. Clair Shores. Their hope is to give homeowners a voice to try to improve the quality of life. In meetings they think of ways they can improve the attractiveness of their community. Membership is open to anyone who lives or owns property in St. Clair Shores. Carol Trinity, St. Clair Shores resident, spoke about the problems she is having with her neighbor. She does not feel the City is helping in regards to Code Enforcement Ordinance 35.005. She has had verbal confrontations with her neighbor and said it has been an unpleasant summer. Mayor Walby asked Ms. Trinity to give her name and address to the City Clerk and he, Mr. Smith, and Mr. Ihrie will get involved. Dave Rubello, St. Clair Shores resident, spoke about what the Macomb County Chamber of Commerce did for the City in the past including putting on the St. Clair Shores Business Expo, and giving an unsolicited $1,500 donation to the St. Clair Shores Parade Committee. He spoke about how he feels it is unfair to put everything on the City Manager and how others can implement things within the City. Michael Odinez, St. Clair Shores resident, spoke about the situation of three houses with issues on Detour Street. Two are going into foreclose and one with the dead tree issue. He is asking City Council for their full support to work together with the owner of these homes to resolve the issues at hand. Marty Prehn, Macomb County area resident, mentioned a 40 th year class reunion for the Class of 1974 from Lakeview High School. He said there is an event on September 13 th in Mt. Clemens to combat domestic violence. He also spoke about upcoming event, Operation Patch Adams, at Kensington Metropark in Milford on September 21 st. City Council Meeting September 2, 2014 Page 11 of 12

12. MAYOR S COMMENTS Mayor Walby mentioned there will be a Study Session schedule for September 29 th to talk about the City s finances. He congratulated the Shorewood Kiwanis for a fantastic Harper Cruise. He mentioned that on August 26 th, after the storm, there was a downed tree at 10 Mile and the highway. He said that DPW was already out cutting the tree to get it out of the way. The Blue Angels will be performing this weekend and Angelo Warnock, a 2001 Lakeshore High School graduate, is part of the avionics team with the Blue Angels. He mentioned that he has had conversations with Mr. Smith and Mr. Esler regarding a community garden. They are trying to get one in process and are looking at several different areas, but the garden may not begin until 2015. 13. REQUEST TO ENTER CLOSED SESSION AS PERMITTED BY STATE STATUTE MCLA 15.268 SECTION 8(c) & (d) Moved by Council Member Caron, seconded by Council Member Frederick to enter Closed Session as permitted by State Statute MCLA 15.268 Section 8(c) & (d) at 9:59 p.m. A roll call vote was taken. Ayes: All 7 Moved by Council Member Rusie, seconded by Council Member Frederick to return to Open Session at 10:53 p.m. Ayes: All 7 14. ADJOURNMENT Moved by Council Member Tiseo, seconded by Council Member Vitale to adjourn at 10:54 p.m. Ayes: All 7 KIP C. WALBY, MAYOR MARY A. KOTOWSKI, CITY CLERK (THE PRECEEDING MINUTES ARE A SYNOPSIS OF A CITY COUNCIL MEETING AND DO NOT REPRESENT A VERBATIM RECORD). City Council Meeting September 2, 2014 Page 12 of 12