Hamtramck Star

Klein and Stackpoole were absent.

No one spoke during public comment. The consent agenda was passed unanimously.

Cooper had no report, but received two letters he wished to share. The first was a standard request from M-DOT requesting right-of-way access for the Safe Routes to Schools program. M-DOT intends to letting bids in February or March and begin instruction immediately after the school year ends. The second letter was from the Recreation Department thanking the city for the use of Zussman Park in the past. The annual Winter Glow Celebration will be held at the High School Community Center this year on Saturday, December 5, from 11 a.m. to 2 p.m.. There will be rides in a horse-drawn carriage, ice sculptures, Santa, reindeer, and holiday treats, music and goody bags.

Gordon asked where the financial report on the Hamtramck festival was. Cooper said he forgot it and would give it to the council by Thursday morning.

Shulgon heard that the city has a rainy day fund of $2.5 million dollars. Cooper agreed that there is slightly more than $2 million in the budget stabilization fund. He said that using money from that fund was figured in, and that he can't take money out of the fund without council approval.

Shulgon asked about the GM TIFA paperwork from 2005. Cooper said a state audit uncovered the expiration of the agreement in 2005, which was between GM and Detroit. He said that failing to renew it was a "missed opportunity, and that the TIFA could be reestablished, but doing so would have little or no value because the base amount would be reset to the current property value rather than previously established, lower value.

Shulgon asked if the TIFA expired when the state was in charge. Cooper agreed that Schimmel was in charge at the time, but Detroit was responsible for collecting the taxes and disbursing them to Hamtramck. Shulgon suggested suing the state. Cooper claimed that less taxes would have been collected by Hamtramck if the expiration had been noticed earlier.

Shulgon offered to put forth a resolution putting a public safety millage on the ballot. Gordon asked if that would be legal under the Headlee Amendment. Cooper said he would have to ask the attorney generals office.

Gordon pointed out that when a TIFA expires, tax collections are supposed to increase. For example, if the DDA TIFA were eliminated, the money currently going to the DDA would be returned to the general fund. Cooper agreed that the GM Poletown TIFA worked the same way, and added that money is also taken from other taxing authorities, such as the library and the schools.

Gordon asked if the collections on Poletown had doubled recently. Cooper claimed that this was due to the value of the property rising and not the expiring of the TIFA. He said the city has collected more than $5 million the last two years, and that GM claims that Detroit has been over collecting. Gordon asked if Cooper was sure that the increase in tax collections was due to the property value. Cooper replied that he would have to look into it because Detroit was collecting the tax.

Gordon asked if Hamtramck has an agreement with Detroit calls for Detroit to make up the difference between collections and a base amount. Cooper agreed that there is an ongoing base agreement, but that the guarantee is by percentage and not a fixed dollar amount.

Public comment

Steve Shaya, chair of the Recycling Commission, said that there were concerns voiced at their October meeting about the education component of the recycling program. The commission feels strongly that education is to be provided by Rizzo for all recycling projects, per their contract with the city. Ladd was supposed to check with Cooper. The commission then received a letter from Cooper stating that Rizzo is only responsible for education if curb-side recycling is implemented. Shaya feels that Rizzo is not honoring their contract.

In regards to the rainy day fund, 17 layoffs at the police department is a disappointment, and layoffs should start in other departments. Crime is high, and it may get to the point where he no longer feels safe.

Angel Profitt of the Recycling Commission said that it seems like the city is not holding Rizzo to their contract. There was no drop-off in October and no reason was given. Education is included in the 2008 resolution establishing the commission, and they can't move forward without Rizzo.

Cooper replied there had been no drop-off in October because the International Bazaar was canceled, and Ladd thought he was supposed to cancel the recycling, too. The city council liaison to the commission, Stackpoole, was informed. He asked Stackpoole if they were going to go ahead with the November and December dates because they are near holidays, and she told him they wanted to go ahead. Arrangements have been made to continue recycling through next summer. Cooper claimed that the dumpster was there in September.

Cooper scolded the commission members for speaking at the council meeting because he answered their questions in writing and is willing to talk about his interpretation. He thinks that commissions should go to him when they have problems, and that he will tell the council what they need to know now that it has been brought to them. It is an operational issue and not a city council issue.

Gordon asked if these responses by Cooper were sent to the commission. Cooper said he sent it to the commission through Stackpoole.

Cooper said that the rainy day fund of $2 million would only delay layoffs until July of next year. He said there is a $2 million dollar deficit this year, and he is trying to minimize the layoffs by stretching the fund for 3 years. If the council wants to use all the money between now and July, that is their choice. The shortfall is expected to be more than $4 million dollars each of the next 2 years.

Bob Zwolak looks at the spending and the fund warrant list every two weeks, and there is still a pattern of excessive spending. We have known since the first of the year that this day was coming, and no action has been taken to modify the spending habits. It used to be that listings were submitted to the council, controller, and finance director, who verified that the expenditures were budgeted and funds available before expenses incurred. Department heads must be accountable for spending money we don't have, or they will submit things to council for their approval when there is no money in the bank.

There is still no report on the festival. It is important to plan ahead for next year because corporate sponsors are planning their budgets. After the first of the year, the likely response will be that there is no money in the budget for sponsorship.

The city clerk is required to have all the legal documents of the city. This would eliminate bills incurred for attorneys calling other attorneys for our documents. There was a local agreement on Poletown because the Detroit was sued for cost overruns on the project. Hamtramck agreed to help pay back the bonds, which were paid off early. Hamtramck agreed to receive $1.7 million dollars while the bonds were being paid off, and thereafter, Hamtramck was entitled to $3.4 million per year. If the city had all the documents, the administration wouldn't be in the dark right now.

A closed session for pending litigation was called. Several of the regular meeting goers waited in the hallway. Steve Shaya showed me the letter the Recycling Commission received from Cooper, and it unequivocally stated that the September recycling event was canceled.

When the meeting was called to order, Gordon moved to approve a settlement with Officer Nunlee. Algazali voted against it; Ahmed, Gordon and Shulgon voted for it. The settlement passed.

I asked the city manager after the meeting how much of the settlement the city is liable for. The city was covered for up to $1 million dollars in damages and has a $50,000 deductible. Lt Ron Mathias, the police officer who caused this lawsuit by making racist comments toward his coworkers, still works for the Hamtramck Police Department, supervising other officers and answering the 911 calls of citizens.