City Council - Regular Meeting

Monday, June 22, 2026

The Rochester Hills City Council approved fee modifications for water, sewer, and cemetery services, and authorized a significant water main replacement project. A key discussion involved the change of control for the city’s waste hauler, Priority Waste, with the new CEO addressing past service issues and outlining plans for improvement.

About this meeting

Government Body
City Council
Meeting Type
City Council
Location
Rochester Hills, MI
Meeting Date
June 22, 2026

Transcript

146 sections

11:46Speaker 6

And welcome to the Monday, June 22nd, 2026 regular meeting of the Rochester Hills City Council. Ms. Bowen, would you take roll?

11:55Speaker 11

President Carlock.

11:57Speaker 11

Vice President Mangioli. Here. Mr. Blair.

12:00Speaker 11

Mr. Lindberg.

12:02Speaker 11

Ms. Menino. Here. Ms. Neubauer. Here. Mr. Scalzi.

12:06Speaker 11

President Carlock, we have a quorum.

12:08Speaker 6

Thank you very much. And if everybody would rise and our student council rep would lead us in the Pledge of Allegiance.

12:16 – 12:28Speaker 14

to the flag of the United States of America, and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all.

12:31 – 12:52Speaker 6

Approval of agenda. I have not been made aware of any changes to the agenda. I have a motion by Vice President Mongioli, seconded by Councilwoman Neubauer, to approve To approve the agenda, all those in favor? Aye. Any opposed? All right, we have an agenda for tonight. First up, council and youth committee reports. Our youth committee representative will kick us off tonight.

12:53 – 13:55Speaker 1

Thank you. Good evening, President Carlock, Vice President Mangioli, city council members, Mayor Binet, and citizens of Rochester Hills. My name is Oliver Blakely, and I am a rising sophomore at Rochester High School. I'm currently going into my second year of serving on the Rochester Hills Government Youth Council, where I serve on the Planning Commission. This past month, the Youth Council has gone down to Van Hoosen Jones Cemetery, where we decorated entrances with different colored flowers. We also had a regular meeting on Wednesday, June 3rd, where we handed out parting gifts to our seniors who were going off to college. Looking ahead to July, the Youth Council is participating in the Festival of the Hills event at Borden Park this Wednesday. At this event, there will be many ways for you as a citizen to celebrate the local culture as a community completely free of charge and open to everybody. We have our July regular meeting in just over a week on Wednesday, July the 1st at 6 p.m. here at City Hall. Our Youth Council has some very special events planned for the summer that will help our community come together and explore our own culture. Thank you all for your time and have a great evening.

13:56Speaker 6

Thank you very much, Mr. Blakely. Next up, Vice President Mangioli.

14:00 – 14:43Speaker 16

All right, so I am wearing my feelin' groovy glasses from the OPC soiree. So, oh my gosh, if you wanted to have a fun night, I haven't seen so many people dressed in clothes that I wore when I was in high school. But it was just a fun night with disco music and, well, probably that's not the right genre, but it was so much fun. I want to thank Renee and the team at OPC for all the work that they did to create a phenomenal event. And all of their sponsors and vendors and crews in Muir outdid themselves with the food. So it was a great night. So next year, you need to make sure you mark it on your calendars to get to the OPC summer soiree. Thank you, President Carlock.

14:44 – 16:04Speaker 6

Thank you very much, Vice President Mongioli. I don't see any other council reports tonight, so we will move on to the consent agenda. All matters under consent agenda are considered to be routine and will be enacted by one motion. without discussion. If any council member or citizen requests discussion of an item, it will be removed from consent agenda for separate discussion. I have a motion by Councilwoman Neubauer, seconded by Mr. Limburg. All those in favor? Aye. Any opposed? That motion passes. Next up, ordinance for adoption item 2026-0244, request for acceptance for second reading and adoption and ordinance to amend sections 54-741, 54-743, 54-744, 54-745, 54-746, 54-747, and 54-748 in Chapter 54. Fees of the Code of Ordinances of the City of Rochester Hills, Oakland County, Michigan, to modify fees charged for water, sewage treatment, non-residential water, and high-strength surcharge, capital charges, lateral benefit charges, and tap charges, and to repeal conflicting ordinances and prescribe a penalty for violations. Mr. Schneider.

16:05 – 19:03Speaker 8

Thank you, President Carlock, Vice President Mangioli. Good evening, City Council, Mayor Barnett, and Mr. Blakely. Well presented before you tonight is the second reading to amend the city of Rochester Hills water and sewer rate fee ordinances to become effective July 1st of 2026. Back in January of this year the city of Rochester Hills selected Plant Moran to conduct a comprehensive water and sewer rate study to review and ensure our water and sewer rates are set appropriately and to recommend established water and sewer rate setting best practices. City staff worked closely with Plant Moran during the study providing data and feedback throughout their review. On April 29th, the Water System Advisory Council met to review the Plant Moran presentation and the rate setting recommendations. The Water Sewer Advisory Council discussed various rate scenarios and water sewer rates. The Advisory Council unanimously recommended the following rate structure to increase water rate per unit by 5.5% or 43 cents a unit. to increase sewer rates by 2.4% or 17 cents per unit and to change the ready to serve charge on the water side by 13% or 40 cents per bill and on the sewer side a reduction of 4.2% or 13 cent reduction per bill. Other changes proposed for the 2026-27 rate year are various pass-through charges from the Great Lakes Water Authority to industrial and commercial customers, which average a 4.4% increase for industrial weight surcharges and 4.8% increase for pollutants surcharges. As well, the City performed a survey of 10 other Metro Detroit area municipalities regarding water and sewer rate charges, capital charges, lateral charges, and tap charges. The city's one-time connection charges for lateral and tap charges are set competitively and are at the midpoint among the 10 communities surveyed. So no changes there are being proposed. However, we found that the city's one-time connection capital charges were set far below the midpoint. As we were very near the bottom, we were at the bottom of the survey by a wide margin. So it is proposed to increase the city's one-time connection water and sewer capital charges to the midpoint of the communities surveyed. So bottom line for the typical water and sewer customer who use a residential average of 12 units per billing cycle, which is two months, the water and sewer bill is anticipated to change from $185 per two-month billing cycle to $192 per two-month billing cycle. That would be an increase of $7 every two-month billing cycle or approximately 4%. A copy of the proposed changes to the water and sewer fee ordinance is included in your packet. And if approved tonight, the ordinance charges will be published in the June 28th publication of the Oakland Press before going into effect on July 1st of 2026. And I am available for any questions.

19:04Speaker 6

Thank you. Thank you very much, Mr. Snyder. We do have some council comments and questions. Vice President Mangioli.

19:09 – 19:33Speaker 16

Thank you, President Carlock. I did have a couple of residents contact me about this, and I just wanted to make sure for clarity for their purposes that the water and sewer rates, the water rates, are just a pass-through. Whatever GLEWA and Detroit is passing, they are just passing it on to us. There's no upcharge for the city of Rochester Hills for our water rates, correct?

19:33 – 19:56Speaker 8

Well, about 75% of it is the GLEWA charge, the charge that Great Lakes Water Authority charged to us, but then we also have city staff, supplies, material, meters, and the capital charge that goes towards replacing the water mains. That's part of the city charge, but the majority of it is just simply the cost that we're being increased by.

19:56 – 20:27Speaker 16

So there's our staff contractual increases that are happening, but overall, the bigger chunk of the rate increase is because the water rate increased. Correct. And it's not because we decided to put administrative charges on there like the county does to us with the sheriff's department. We're just passing along what GLIWA is charging to us. And I remember asking you at the last meeting that that was based on before the water pipe broke in Auburn Hills. So they're not...

20:28Speaker 15

charging us more because the pipe broke. No, no, ma'am.

20:32 – 20:45Speaker 16

Okay. And sewer rates, same kind of thing. It's just pass through. And if you were a business owner in Rochester Hills, that's where you're being charged more. If you're going to develop property here or to the tapping fees.

20:46 – 20:59Speaker 8

If you are not connected to the system and you're connecting into the system, that's where the capital charges, the lateral charges and the tap in fee take place. But if you're already connected to the system, You're already connected.

20:59Speaker 16

All right. So I just wanted to make sure the residents understood it's because somebody else is charging us more money for the water and we're just charging them that amount.

21:09 – 21:20Speaker 8

Correct. Correct. The vast majority of the charge is just the charges that are passed on to us, which actually get passed on to all communities served by the Great Lakes Water Authority and Oakland County Water Resources for Sewer.

21:20 – 21:31Speaker 16

So Auburn Hills, Orient Township, Pontiac, they're all seeing the same price increase. It's not because we are the largest consumer of Gliwa water. It's because we're all getting the same rate increase.

21:31Speaker 8

We're all getting a very, you know, within a percentage point either way, the same charge, yes.

21:36Speaker 16

Thank you very much, Mr. Snyder. And with that, President Karluk, I move the resolution in our packet.

21:40 – 23:09Speaker 6

Thank you very much. I have a motion by Vice President Mongioli, seconded by Mr. Lindbergh. I don't see any further council comments or questions on this, so I'll read the resolution. Resolved that an ordinance to amend sections 54-741, 54-743, 54-744, 54-745, 54-746, 54-747, and 54-748 in Chapter 54, fees of the Code of Ordinances of the City of Rochester Hills, Oakland County, Michigan, to modify fees charged for water, sewage treatment, non-residential water, and high-strength surcharge, capital charges, lateral benefit charges, and tap charges, and to repeal conflicting ordinances and prescribe a penalty for violations is hereby accepted for second reading and adoption and shall become effective Wednesday, July 1, 2026, following its publication in the Oakland Press on Sunday, June 28, 2026. All those in favor? Aye. Any opposed? That motion passes. Thank you very much. Thank you, Mr. Snyder. Next up, Item 2026-0268, Request for Acceptance for Second Reading and Adoption, an ordinance to amend Section 54-32 in Chapter 54, Fees of the Code of Ordinances of the City of Rochester Hills, Oakland County, Michigan, to modify fees charged for the cemetery, repeal conflicting ordinances, and prescribe a penalty for violations. Clerk Scott.

23:10 – 23:39Speaker 14

Thank you, President Karloff, Vice President Mangioli, City Council, and Mayor Barnett. Back on June 8th, council accepted for first reading the proposed amendment to modify the fees associated with our cemetery. Those changes are listed in the ordinance, which is included in your packet. And tonight is the second reading and request for adoption. This ordinance, if adopted tonight, will become effective July 1st. And I'm here to answer any questions if there are any.

23:41 – 25:00Speaker 6

Thank you very much, clerk Scott. I don't see any council comments or questions. I have a motion by Councilwoman Neubauer, seconded by Councilwoman Menino. Again, no questions or comments, so I'll read the resolution. Resolved that an ordinance to amend section 54-32 in chapter 54, fees of the code of ordinances of the city of Rochester Hills, Oakland County, Michigan, to modify fees charged for the cemetery, repeal conflicting ordinances, and prescribe a penalty for violations is hereby accepted for second reading and adoption and shall become effective Wednesday, July 1st, 2026, following its publication in the Oakland Press on Sunday, June 28th, 2026. All those in favor? Aye. Any opposed? That motion passes. Next up, public comments for items not on the agenda. Reminder, public comment is limited to three minutes. We do not have any blue public comment cards, and I don't see anybody rushing to the podium, so we will close public comment. Next up, legislative and administrative comments. Wow. Council's trying to get out of here quick tonight. No council comments for today. We'll go to the administration. Mr. Mayor.

25:02 – 32:30Speaker 3

Thank you. Some World Cup fans here or something. I don't know what's on tonight, but good evening, President Carlock, Council. Thank you for a few moments to give you a little bit of an update on some things happening in the city. Obviously, the biggest thing is our biggest event of the year is on Wednesday. It's our Festival of the Hills fireworks show. We have a great evening of events planned. I know many of the council are there each and every year, but we always... have a wonderful full lineup of musicians and bands and DJs. you should hear the stories about the food trucks and fighting for a pole position and the food truck land. And there's a whole subset of conversations that God bless the parks department. Um, we do have one thing, um, and I'll tease it. We have something we've never done before, uh, at the firework show that we're doing at 10 Oh two. So, uh, I hope that you will show up. Um, and it's not a firework. So, uh, hopefully that'll, uh, Just encourage you to show many of our councilors, you know, this is an event that many of our residents plan their summers around. We're excited for it. We thank our two major sponsors, Sarah Automotive, which has, of course, two locations in Rochester, some folks I think we'll probably hear from in a few minutes, our friends from Priority Waste. So thank you for your sponsorship. But we just encourage everyone, there's on the website lots of information, no pets. A couple years ago we had someone bring a pig. We didn't think we'd have to mention that. Obviously no dogs, but again, if you're thinking about bringing that pig back, don't. It didn't help us. And so no animals, no alcohol, no fireworks of your own. We have a lot of people coming, and we want to make sure that everyone's experience is wonderful, so please be mindful of that. The weather looks great, and we look forward to a fantastic event. On the complete other side of fantastic events is road construction, but this is an important one. This started today, so if it took you a little longer to get home, this is why. The infamous intersection at Crooks and Hamlin is getting much-needed work. It will be uncomfortable for about the next three weeks, as it is a hard close to get it all done, we've seen a lot of things that have been ripped out taken to you know fixed and repaired so there's no one lane up one lane down it is a hard close and people realize that today although the information but not for a long time. This is web page for the latest information but we appreciate people's patience says this was certainly necessary by the worst section road in our city and we've allocated time and resources with our partners at the county to make sure this is a priority to get Speaking of season, I just mentioned these folks. I went out and spoke to them last week. You don't realize how many folks are out there. This is our lifeguards, our seasonals, our park attendants from all across the parks in the city. There's probably 75 people there that day that we talked to that ran in and out. Just thanking them for the great work they do. I love visiting our parks on the weekends. I know council are big supporters of them as well. But just creating experience for our folks and just thank them for the good work and hard work they're doing. When we're vacationing and enjoying quiet weekends, it's their busy season. So we appreciate the work that they do. It's nice to stop out there and say hi to them and encourage them. While I was out there, we filmed something that you'll see. It's on now. But if you haven't been out to Spencer Park and seen the new upgraded fishing pier, it's exceptional. It is five times bigger than the last one, ADA accessible. Great memories, great moments out there for folks. Really encourage you to come on out to Spencer Park and take a look at that. Obviously, we have boat rentals, kayak, a new kayak, ADA accessible entry point. Lots of things happening out at Spencer. But, of course, in beautiful days, this is the place to be in the city. Speaking of places to be in the city, I want to thank Council Members Menino and Mangioli for being at the opening of the jail. There might have been somebody else. I can't remember. Anybody else? If anybody else is out there, I forgot. But this is the first new construction we've had in the Brooklyn since the city made the significant investment down there. And this is a great story. Three-story building, commercial on the front, residential second and third, and already over half filled before they even cut the ribbon, which is great. Indicates the interest of people being in the city. Our first folks, this is Ms. Maggioli's idea. I guess the reason why the bag picture is there is we went them back, the new folks moving from California, and gave them a bag of goodies as well as VIP parking and seating for the Festival of the Hills event. which, by the way, you should all have received on your desks as well. So hopefully we'll meet our new guests from California there. But this is a larger story about a city's long-term plan to invest in the Brooklands and really do something that most communities only dream of, which is kind of change the trajectory of a part of your community. And it's great to see this. And, of course, the businesses will be happy. There will be more residents there and so forth. So really nice win for the city. Great partners down there. Welcome to the Gerald Building. And new welcomes. It's always nice to talk about this. If you may have seen this posted on Facebook. Anytime we post something about the fire department on Facebook, it does very well. I wonder why. These folks were able to deliver a baby in the back of the ambulance. It wasn't quite as mom had planned. But there is a code in the department that if you deliver a boy, you get a blue stork pin. If you deliver a girl, you get a pink stork pin. And these guys earned their blue stork pins by successfully delivering a baby boy in the back. It is also noted that most firefighters, many firefighters can go their entire career without ever getting a pin. Ironically, this same group did the same thing less than two years ago. So they've got like the Applebee's flare on the uniforms now from the deliveries. So we want to thank them for their efforts. And of course, the men and women of the fire department do a great job, especially here. for that family on that day. Two last things I'll point your attention to. The council is well aware of these, but we hope the community will as well. There'll be two ballot questions on the August ballot. By the way, that August ballot is like, Six, eight weeks away, not too far. So coming up pretty quickly, Leanne knows the date. She's got a tear-off counter in probably her living room or her kitchen or her car. The first, of course, is the fire department millage, which is a millage question for the increased need and a proposal to match that increased community need. The city's webpage has a lot of information, and this informational flyer, the council is reminded that we can inform, we can educate, we cannot advocate, and we're very conscious of that. But this informational flyer will be out and it hit mailboxes next week. So we encourage our residents to be informed voters on that proposal as well as the pathway millage renewal. This one's a little bit different. This one is not a new millage. This is a simple renewal and that affects the tax rate. This goes to funding our pathways and that of course includes two particular pathways that people might not always account for but that's the Clinton River Trail and the Paint Creek Trail. Two important village questions for residents to consider. So lots of things happening, but most importantly, we hope to see everyone out on Wednesday this week. And we certainly in advance thank not only all of our sponsors, but all the first responders, DPS team members, parks team members, everybody. It takes hundreds of people to pull off a 50,000 person event and we execute it flawlessly, close to flawlessly every year. And we're grateful for it again this year. So we'll see everybody on Wednesday. Thanks, President Carlock.

32:30 – 32:41Speaker 16

So, Mayor, I had a question for you. Yes. What is the optimal viewing location given your possible surprise at 1002?

32:44Speaker 16

It's just that...

32:46Speaker 3

I would look where the fireworks normally are. That's a great place to look.

32:50 – 33:02Speaker 16

Councilman Salvia from Rochester had recently been at a fireworks display and she was giving pointers to people as to make sure you understand which direction to look. So up sounds good.

33:02 – 33:14Speaker 3

Up is general. You know, many folks will get there early to find a great spot on the hill. That's the best place to watch the music and the entertainment. And so that would be a great place to watch the multiple shows that will happen that evening.

33:14Speaker 16

And have we reached out to the residents to start their rain dance to avoid rain for Wednesday evening?

33:20 – 33:36Speaker 3

Yeah, I looked this morning. We still look pretty good. I look at this about every 30 minutes. It'll be every 10 minutes on the day of, but we still look like we're doing good with 75 degrees. It has increased the rain a little bit, but I have it on good authority that it's not going to rain at all. So there we go.

33:36Speaker 16

Okay. Thank you very much for that, Mayor. I appreciate it. Thank you, President Carlock.

33:40Speaker 3

Thank you both.

33:41 – 34:24Speaker 6

Seeing no further council comments or questions, we will move on to the attorney's report. Mr. Crist. Thank you, President Carlock. No legal report tonight. Thank you very much. Nominations and appointments. Item 2026-0290, request to confirm the mayor's reappointment of Scott Hunter and Thomas Pozzolo to the Advisory Traffic and Safety Board each for a three-year term to expire June 30th, 2029. Do we have a motion? Oh, we do have a... Mr. Limburg.

34:25Speaker 12

Yes, thank you very much, Mr. President. I move to support both of these candidates.

34:32Speaker 6

Thank you very much. Mr. Blair.

34:36Speaker 7

President Carlock, I have also served with these two individuals. They've done an excellent job on that committee, and I second Brad's motion.

34:44 – 35:42Speaker 6

Thank you. So we have a motion by Mr. Limburg, seconded by Mr. Blair. I don't see any other council comments or questions on the motion. Resolved that the Rochester Hills City Council hereby confirms the mayor's reappointment of Scott Hunter and Thomas Pozzolo to the Advisory Traffic Safety Board each for a three-year term to expire June 30th, 2029. All those in favor? Aye. Any opposed? That motion passes. Brings us to new business. Item 2026-0287, request for purchase authorization, DPS Engineering, contract blanket purchase order for the Henry Ford Hospital, Avon Towers, and Rochester High School water main replacement project in the amount of $1,000,000. $902,886.76 with a 10% project contingency in the amount of $190,288.68 for a total not to exceed project cost of $2,093,175.43. Bidigari Contractors, Inc., Plymouth, Michigan, Ms. Ballant.

36:02 – 37:09Speaker 15

Good evening, City Council President Carlock, Vice President Mongioli, City Council, and Mayor Barnett. The Department of Public Services recommends exercising our second and final contract renewal option with Bidegary Contractors for the Henry Ford Hospital Avon Towers and Rochester High School Water Main Replacement Project. I think that might be the longest name we have so far. This project includes replacing aging water mains on the hospital property, extending water main along Walton Boulevard to create a redundant connection, replacing obsolete fire hydrants and valves at Avon Towers, and addressing a break-prone segment at Rochester High School. I just want to mention that that's a fire hydrant in the parking lot, so that's the only impact is in the parking lot at Rochester High School. Work is scheduled to begin in late August and take approximately 10 weeks. To ensure minimal disruption, we will coordinate with Rochester Community Schools regarding the school operations and that extension in the parking lot. We have also met with Henry Ford hospital to discuss the improvements and we'll meet with them again before construction begins. So with that, I would be happy to answer any questions you may have.

37:10Speaker 6

Thank you very much, Ms. Ballant. We do have some council comments and questions. Vice President Mongioli.

37:14 – 37:46Speaker 16

Thank you, President Karlak. And so thank you, Ms. Ballant, for answering my questions by email. And so, President Karlak, I'd like to have those added to the minutes from today's. Because you've covered some of them as far as what's happening at Avon Towers and at Rochester High School. But my concern was... You know what the construction going on all the road construction body to make sure we weren't going to be closing down any part of Livernois during any of this. And you have told me no, that that is not going to be in their traffic descriptions on Livernois and Walton will be minimal. Right.

37:46Speaker 15

We're making one connection on Livernois, so that might have it short term on the west side, you know, but I'm talking a couple hours, not like multiple days. Multiple days.

37:54 – 38:10Speaker 16

Yes, exactly. And we had discussed some of the Bidigari contract at our last meeting because they were also doing the work on Dutton Road. So thank you very much for emailing me in advance. I appreciate it. With that, President Karlic, I move the resolution in our packet.

38:10Speaker 6

Thank you very much, Vice President Mangioli. I have a motion by Vice President Mangioli, seconded by Ms. Menino. Mr. Lindbergh.

38:19 – 38:33Speaker 12

Yes, thank you very much, President Karlak. I do have one question, and it's related to the high school. It sounds like construction is going to be towards the beginning of the school year and whatnot. Will there be any impact to the student parking that's along the road or anything?

38:33 – 38:53Speaker 15

No, we're going to coordinate with the school. And it's a hydrant extension, but it's a main that leaks in the parking lot. So they'll either do it over a break or a holiday or something, but that will be something that's coordinated with the school. And we don't want to be in their parking lot right during the school time. Or if they have to do it on the weekend or something. But we will coordinate with the school. Great, thank you. That is all.

38:54 – 40:39Speaker 6

Thank you very much. So I have a motion by Vice President Mongioli, seconded by Councilman Menino. I don't see any other council comments or questions, so I will read the resolution. Resolved that the Rochester Hills City Council hereby authorizes a contract blanket purchase order for the Henry Ford Hospital, Avon Towers, and Rochester High School water main replacement project to Bidigari Contractors Inc. Plymouth, Michigan in the amount of $1,902,886.76 with a 10% project contingency in the amount of $190,288.68 for a total not to exceed project amount of $2,093,175.43 and further authorizes the mayor to execute an agreement on behalf of the city. Further resolve that the city's acceptance of the proposal and approval of the award of a contract shall be contingent and conditioned upon the party's entry into and execution of a written agreement acceptable to the city. All those in favor? Aye. Any opposed? That motion passes. Thank you. Thank you, Ms. Ballant. Oh, that brings us to item 2024 dash 0351 request for purchase authorization citywide increase to the contract blanket purchase order for citywide printing services in the amount of $16,000 for a new not to exceed contract amount of $426,340 through July 31st, 2027 Image Printing, Inc., Royal Oak, Michigan. Mr. Snyder.

40:39 – 42:19Speaker 8

All right. Well, thank you again, President Carlock, Vice President Mangioli, City Council, Mayor Barnett, and Mr. Blakely. Well, presented before you tonight is a request to increase the three-year blanket purchase order for citywide printing services by $16,000 to Image Printing, Inc., and in 2024 the city Rochester Hills issued a request for proposal or an RFP for citywide printing services and this blanket purchase order covers citywide printing needs including the Hills Herald, various booklets, inserts, and city letterhead. What was not factored into the blanket purchase order amount that was issued back in 2024 was the printing and publication of two city millage proposals scheduled for the August 4th election. That being the pathway millage renewal and the fire charter millage increase, which Mayor Barnett introduced earlier this evening. The estimated total for two separate public education mailers for both of these two ballot proposals is estimated not to exceed $16,000 total. So tonight we are requesting to increase the citywide printing services blanket to ensure that the city's routine ongoing printing needs increase. are not impacted by the public education mailers that were unforeseen back in 2024. We did include the pathway millage printing costs in the 2026 budget but I forgot to request a budget allocation for the fire millage printing along with the resolution to place the fire millage back on the ballot. Those funds are proposed to be drawn for the fire millage from fund balance general fund fund balance or i.e. a reduction in the transfer out to the capital improvement fund this year. So I am available for any questions you may have.

42:20 – 43:11Speaker 6

Thank you very much. I don't see any comments or questions. I have a motion by Mr. Blair, seconded by Councilwoman Neubauer. I'll read this resolution. Resolved that the Rochester Hills City Council hereby authorizes an increase to the contract blanket purchase order for citywide printing services to Image Printing, Inc., Royal Oak, Michigan, in the amount of $16,000 for a new not-to-exceed contract amount of $426,340 for a three-year term to expire July 31, 2027. All those in favor? Aye. Any opposed? Motion passes. All right. Thank you. Thank you. Next up, item 2026-0265, request for approval of consent to change of control and consent to assignment of the city's single waste trash hauler contract. Mr. Mueller.

43:12 – 43:29Speaker 9

Perfect. Good evening, President Carlock. Vice President Mongioli, City Council, Mayor Barnett, Mr. Blakely, joined here today by new Priority Waste CEO, Aaron Johnson, as well as Brett Quitiquit. They will kind of give you a little overview of where things stand with Priority Waste and what they're requesting here this evening.

43:31 – 49:49Speaker 17

Mayor, Council, and staff, thank you. And let me just start by giving you my sincere apologies for any of our service that's caused a disruption to your community. it's not the service you pay for and I including you I expect better out of priority waste going forward. We're here to request consent to sign the contract over. About five, six weeks ago, TPG, they're the fifth largest private equity company in the world, took over ownership along with myself. I'm a part owner. And then I was announced officially a CEO on June 1st. And so there's a new controlling party that's fully funded. At closing, if you want, I'll just give you a brief recent history of what we've done to reinvest back into the company and improve the service you pay for. We closed the deal about five or six weeks ago, and at closing, we wired over $70 million out to all of our existing vendors. We had basically been cut off from tire vendors, parts, fuel, disposal outlets. The company was... on the brink of bankruptcy tpg entered in so we paid off all vendors at closing we're also using a 198 rental trucks to service the communities around here at the time of closing we purchased all 198 of those rental trucks so if you see any white trucks as a premier truck rental on the side we we officially own those vehicles now. but in addition to that on the day after we close i ordered ninety one brand-new fully automated siloed vehicles uh... we've received about thirty of those to date and for each one of those trucks that comes in were displacing our are worst of our worst trucks our biggest issue recently in the last call it four or five months has been a lack of reliable vehicles to service your residents with over the winter because the company didn' t have the funds to pay their vendors they basically cannibalized their own fleet so all the compost trucks that were parked last November after leaf season those trucks were all sitting in the yard over the last six months if a front line trash and recycling truck would break down because they couldn' t buy parts from many of the vendors around town they would go take parts off the old And they were ready priority was not ready to start your compost season and so I apologize and I'll take full accountability for that. what i've tried to do when i meet with most communities is give you specific measurable actions that we're taking to improve it that you can hold me accountable to and so we've ordered these trucks we begin we've begun receiving these trucks we're not fully staffed just last three weeks we've hired forty one new drivers we have had twenty five drivers terminated uh... for various reasons but we are not positive on the driver front And then the other pain point I often hear are carts, residents waiting to receive carts or get a cart repaired. When I started this job, a couple, weeks ago we had over 10,000 cart requests they hadn't purchased new carts since dating back to January my first week here we ordered 19,000 carts were fully stocked we now got total open tickets down below 3,000 and for your community there's seven carts which is I think pretty standard that's kind of our weekly turnover of damage people move out people move in and need a cart and So I would say we're 100% caught up on your carts within Rochester Hills. And then the fourth item I hear the most about, if we don't have trucks, we don't have people, and if we're not giving your residents carts, then people get angry and they call. And I know a lot of you and your staff have received calls that should never happen. But we too, we were inundated with calls. We only have 12 people answering calls. It's usually enough for the 800 to 1200 calls we get a day, but we're getting over 4,000 calls a day. And so we've done some things to address that. I was challenged by another neighboring community to fix it and fix it fast, and so we interviewed three companies. We selected a vendor, ACS. They are out of Troy, Michigan. They are a third-party answering service. They help DTE, for instance. They're really familiar with utility-type calls. uh... and so our overflow call volume is now being answered that started last week so we've more than tripled our capacity answer phone calls but we've also improved our level of service out in the streets last week we reduced our carryovers by eighty two percent over the prior week and we average ninety six percent route completion last week so not as good as we want we're striving for ninety nine percent or better uh... but ninety six was the best we've had since i've been with priority waste And so we're seeing call volume dramatically decline while we added additional capacity to answer the calls. And my hope is that your staff is not taking that overflow when we can't do our job. So I just want to say I'm sorry that. yard waste season started the way it did. I've been in this business my whole life. I'm a four generation garbage man myself. Had a family business. My father sold the waste management back in 2003 when I was just 22 years old. I spent the last 22 years at waste management. I was the area regional vice president for waste management over all of Michigan, Ohio and Indiana. I reside down in Ann Arbor. Mayor reminded me of the second best city in Michigan I think recently and so I spent 22 years there I know what good looks like and I know what you expect and I have full intentions of delivering what you expect and so what I'm asking is for the approval to consent to change over the control and I'm going to give you everything I have to improve the service out on the streets and if I don't hold up to that you have every right to fire me.

49:51 – 51:22Speaker 6

Thank you very much, Mr. Johnson. You know, as a resident, one of the things I can say is it was bad and it's gotten better. So there is significant improvement over time. And while not perfect, there's room for improvement everywhere. In fact, just two weeks ago, I sent Mr. Mueller a picture of my driveway where, you know, the I had a TV box out there and it looked like the driver got out and moved it so that they could pick up the can and left it sitting there on the drive. Well, and then the truck throws my can into the middle of the driveway, which is pretty impressive because I don't think they're meant to throw those cans, but they do. I had to pay extra for that. Oh, yeah. I thought I got a discount for that. No, but, you know, we appreciate you coming here. We appreciate the commitment to the residents to make it better. I can speak for myself, I can't speak for my colleagues sitting up here, but understanding that the company had cannibalized vehicles and done what was needed to do to get the things over the winter handled. Sometimes businesses are that way, but I do personally appreciate that. You've found a new investment partner. You've found somebody willing. Trash is not sexy. It is not a sexy business, but it's necessary. So I do appreciate it. We do have some council comments and questions. We'll start off with Vice President Mongioli.

51:22 – 52:07Speaker 16

Thank you very much, President Carlock. Thank you very much, Mr. Johnson, for apologizing. I know it's not an easy thing to do, and I'm hoping our residents will accept it. I know that I do. And I wanted to tell you, when you want to look at good service, you have to look at Mr. Quiddiquid. because he came to the Rochester-Rochester Hills Sister City Committee earlier in May and explained everything that you've just said to us tonight. So Mr. Scalzi and I got to ask him a lot of questions or interrogate him, but he was very forthcoming with a lot of information, as well as Marilyn Trent from Rochester was there. So we had an interesting dialogue for probably a good hour and a half. We may have made him late for Dryden, but...

52:07Speaker 4

You did, and yeah, everything was recorded.

52:12 – 52:39Speaker 16

Yes, he did a fabulous job explaining to us about the carts, about the trucks, about the challenges that you've had, and the fact that TPG was coming in and basically being the savior of priority. The one thing I'm sad about is the inspirational sayings are going to be gone on the side of the garbage trucks and I always have such fun reading them as I'm driving around in the community because they have some wonderful sayings on them, but I guess the color scheme is changing.

52:39 – 52:51Speaker 17

Colors are changing, logos changing. I got mixed reviews. Social media's having a blast with those sayings right now, but yeah, it's a little too busy and it's distracting, I think, a little bit.

52:51 – 53:15Speaker 16

All right, well, I'll be in the minority of enjoying them because, you know, when you're driving at 7.30 in the morning to work, sometimes seeing that positive message was a great thing to see. I will also say today is my trash pickup day, and as I was leaving, I checked. Recycling was picked up. Yard waste was picked up. Garbage still had to come, but I saw the truck down the other side of the subdivision as I was leaving, so I figured we're good.

53:15Speaker 17

I was told 100% cleared all routes today, so by 8 o'clock, it'll be all done.

53:18Speaker 4

Actually, I just got a message. It has all been cleared. Yep.

53:22 – 53:34Speaker 16

Yes, so I want to thank you for the work that your team has been doing to make this happen. Mr. Quiddiquid also mentioned, was it the MRF, the recycling center that we could go to?

53:34 – 53:46Speaker 4

Yeah, so our Pontiac MRF, you guys would be able to come and tour the MRF. We did that with Waterford, so anyone who would want to come and tour, I can set that up.

53:46 – 54:37Speaker 16

Yes, and so Mr. Scalzi is working with Clerk Scott to make sure council knows and we can get a date because Open Meetings Act requires that we can't all be there on the same day. So we're working on that. And then Ms. Chapsky, who works in one of your customer service areas, I've already been in contact with her, and she's going to be coming in to do a presentation on how to make sure we use our recycling bins correctly and don't contaminate the recycling. So we're just working on a date, whether it be at the school or at council or at some other community event. Your team has been really taking care of you and doing a lot of advanced work coming to this point to at least for Sister City, let us know that you're doing a great job and moving forward to help correct the issues that were out there. So thank you very much. And Mr. Quiddick, thank you very much for everything you shared.

54:37Speaker 4

I'll be there on Wednesday, so I'm very excited to see what the surprise is.

54:45 – 55:08Speaker 16

So he did a great job, and I'm just thrilled to see that things are going to be moving along. For Mr. Vazenko in the back, please let Jody know that hopefully that means we won't have as many phone calls coming into her office complaining about trash. But they've got to give us a little bit of time to make sure those new trucks and the carts are in, but the new trucks are on. Okay. Great. Thank you very much.

55:08 – 55:21Speaker 17

All trash and recycling every day for the last week has been on time as scheduled. I think we had one route breakdown on Tuesday last week and two route breakdowns on Wednesday that caused the compost to be a day behind, but everything was serviced by Friday.

55:21Speaker 16

Thank you very much for that. And with that, President Carlock, I move the resolution in our packet.

55:25 – 56:21Speaker 6

Thank you very much. A motion by Vice President Mangioli, seconded by Councilman Neubauer. Before we move on in comments, I do have one other thing. So I saw something new last week when it comes to the trash trucks. In the subdivision, it's not uncommon for trucks to leak mysterious fluids out of them. Sometimes it smells bad. Sometimes it's some kind of hydraulic fluid. There was on Yungle and... Oh, I don't know what other street a truck had dropped some oil on the street. There was a priority pickup truck out there putting down some degreaser and, and it was, I was like, what is going on? This is, this is new. So another, you know, another positive change that we've seen, you know, I don't have people calling me saying they picked up my trash and left me a nice big smear down the road.

56:21 – 56:42Speaker 4

So, yeah, so that, that was our general manager. He went out and took care of it right away. Uh, You know, I didn't realize you're the person who left the TV box out. So, you know, but no, we took care of that right away. As soon as we're getting calls now, I mean, literally our general manager, territory manager and the extra person that we have. I mean, we're right on it right away.

56:43 – 58:02Speaker 2

yeah no i i do appreciate everything we do have further council comments uh miss neubauer thank you president carlock so i was one of those people who was super mad when we transitioned to priority race and i had i think 15 to 16 pages of handwritten notes of all the violations because i wanted to like Sue the crap out of you guys because it was so bad. But I will say it's gotten much, much better. And I do appreciate the efforts that you guys had made, especially in the last month, to resolve those issues. There's growing pains in every business. And transition from another company is not easy, especially in the condition that you guys received the company and the equipment and the trucks and all of those things. this is pretty much from my understanding is that it's a procedural kind of resolution so that there's no default in any of the contract language to make sure that we can transition and keep the service going on and improving. So it's just a procedural administrative kind of thing we're doing today, not necessarily making any change. I just want to put it on the record. We're not making any changes. We're not taking services away. We're not doing anything like that. We're just doing some administrative buttoning up of the contract to make sure that you can continue to do work and improve the service in Rochester Hills.

58:03Speaker 17

That's 100% correct.

58:04Speaker 2

Okay. My trash was not picked up last week, but that's not your fault. It's because I have two teenage boys that forgot to take the trash out.

58:11Speaker 17

Man, I was nervous.

58:12 – 59:36Speaker 2

No. They're fired. I'm going back to child labor laws here. PUTTING DOWN SOME NEW REGULATIONS IN THE HOUSE, BUT I DO APPRECIATE THE EFFORT OF WHAT YOU'RE DOING TO MAKE PROGRESS AND TO IMPROVE THE SERVICE. THE CALL TIMES ISSUE IS A HUGE PROBLEM. WE WERE GETTING INUNDATED WITH EMAILS AND CALLS AND FACEBOOK MESSAGES AND TEXT MESSAGES AND OUR SUBDIVISION PAGES WERE JUST OVERFLOWING WITH COMMENTS, AND IT WAS OVERWHELMING FOR US. I CAN'T EVEN IMAGINE HOW AWFUL IT WAS FOR JODY. I CAN'T TELL YOU HOW MANY TIMES I TEXTED HER AND SAID, You've got to be kidding me. We have to do better. So hopefully this is a new path forward and that if there are issues, they are addressed as quickly as you're saying they'll be addressed. And we will hold you accountable to that for that. It is a service that's paid for. It's not... people pay for it every three months, they get a bill at their house, so they want to receive quality service for what they're paying for, and it's not fair to tell our residents, well, this is your only choice, so suck it up and deal with it until they get themselves together. So hopefully, you've gotten yourselves together. So I do appreciate the apology. It takes a lot of character, and it's good business. So thank you for that, and I will make sure my kids get the trash out tomorrow morning.

59:36Speaker 17

It's going to be a heavy stop.

59:38Speaker 2

Yeah, it will be. Thank you.

59:40Speaker 6

Thank you. Thank you very much. Next up, Mr. Scalzi.

59:43 – 1:00:04Speaker 5

Thank you, President Carlock. What's the lifespan of a truck, a garbage truck? Seven to ten years. Okay. And then, like, the rentals that you got, how old are those rentals? One to two years. Okay. So they're relatively new, too. And then, like, how often do you do maintenance on these trucks? I mean, do they get checked every six months?

1:00:04 – 1:00:26Speaker 17

So we have three parts. Preventative maintenance schedules, a PMA is every 200 hours. So roughly once a month, they operate 10 hours a day. And that's a fluid and filter change. Then you got a PMB or C where it's more in depth, where you're diagnosing the electronics, the hydraulic hoses, the pumps, the seals, et cetera. Those would happen like once every six months.

1:00:26Speaker 5

Okay. And then you ordered 91 new trucks and you're going to get delivery on those trucks?

1:00:31Speaker 17

We've received roughly about 30, 31 of those vehicles so far.

1:00:35 – 1:00:46Speaker 5

Okay. And then compost, when's that going to be, like, are you going to sit, you're positive that all the compost is going to get picked up tomorrow? Because that just gets under my skin.

1:00:46Speaker 17

Yeah. I'm positive it all got picked up today. Okay. I'm always one breakdown and a call off away from breaking a promise.

1:00:53 – 1:01:10Speaker 5

And then what's your, like... gold date like okay this is that we are now at the pinnacle of being at the best that we are doing i mean are you like okay well we should not be giving calls after four months earlier you know they should be limited

1:01:12 – 1:01:34Speaker 17

Well, I'm a continuous improvement mindset, so it'll never be good enough. We'll always be getting better. I think we'll get to a respectable level of service consistently day in and day out, no later than the end of July. I would say by then we should have about 60 of our 90 trucks delivered to us by then, and it'll make us just a much more reliable fleet out on the street.

1:01:34 – 1:01:51Speaker 5

And then this is another thing that bugs me is when I go by somebody's recycle bin and they've got so much cardboard that they had to put it on the side and it doesn't get picked up. I don't understand that. I'm like that it's just kind of going backwards with the recycling.

1:01:52 – 1:02:17Speaker 17

I like to get it because it's a commodity that we can sell. So the cardboard's worth 50, 60 bucks a ton. So I want to get it picked up as well. I don't want it going in the trash truck. Our drivers, I don't know the rules. We have 110 contracts. I don't have all the legal language memorized, but I'd like to coach our drivers and to reload the container, do what's best for the customer. I don't want to be the trash police enforcing every nickel and dime rule.

1:02:17 – 1:02:28Speaker 5

Well, in my neighborhood, I guess I am the trash police. So I mean, because they're always coming up to me when they're walking their dog and they want to know, you know, when's the garbage getting picked up?

1:02:28Speaker 17

I would ask that they break down the boxes and try to fit it all in.

1:02:31Speaker 5

I got a family of four.

1:02:32Speaker 17

I can fit mine in weekly.

1:02:33Speaker 5

But I spend too much time doing that at my own house. My wife thinks I'm a little OCD with cardboard.

1:02:41Speaker 6

But OK, thank you for answering the questions. Thank you. Thank you very much, Mr. Scalzi. Mr. Blair.

1:02:50 – 1:05:40Speaker 7

Thank you, President Carlock. Aaron, I appreciate you being here. I appreciate you owning the mistakes of priority. Brent, it's good to see you again. I'm sorry I missed you at Sister City. I also thank you for your sponsorship of our fireworks show. It's much appreciated, but I'll be the voice of dissent here. I don't think service has improved to the point where I'm satisfied. I continue to get emails and calls from my residents, and I just recently had a huge issue. I tried to get some shower doors picked up. They'd already picked up the old shower doors from my first bathroom. Put them outside, picked them up. They weren't even wrapped up or anything. And I put out the second set of shower doors from the other bathroom that I redid and they weren't picked up. So 15 emails between myself and Jody and our building department, who does amazing work, by the way, a couple of days later, she said, well, they weren't picked up because they weren't wrapped. They have to be wrapped. They have to be wrapped in plastic or cardboard. Aaron, would you put my screen up just briefly and then take it off? I can't see it. Well, they were wrapped in plastic. And so that wasn't true. They sat there for another four days. And they eventually picked up the day, I think, on Saturday, the day before I had to put them out at night. So there are still issues. And back in May, my entire street was missed on the yard waste side of things. So now what I'm hearing is just how unhealthy of a company it was And I have to wonder, how do we get to that point, right? Because here's the deal. When private equity comes in and invests hundreds of millions of dollars in a business that's struggling, they're not going to maintain the status quo. They're in it to generate some kind of a return. And those returns come from one of two ways. You can increase revenue, or you can reduce operating costs. and based on what i've heard you're not doing much reduction of operating costs in fact quite the opposite you're hiring people you're buying assets you're expanding services and that all costs money so while our rates are good through 2029 i have to ask on behalf of my residents what on earth is going to happen to our rates because at some point your new owner is going to want to cash in on all this money that they're pouring in And what can we expect? Higher rates? Can we expect maybe a more narrower interpretation of what service requirements entail? So these are my concerns. Are they off base or are these valid?

1:05:43 – 1:06:35Speaker 17

Respectfully, I think some of that is a little off base. TPG is not in the business of coming in and ruining companies. What we want to do is build a great company that somebody else would want to buy someday or we could take it public and you could invest in it yourself. We've invested It's about $190 million in the last two months into this company. So it's all about building a strong, dependable company, and then we want to go grow it. Right now, I can't even think about growth because I'm fixing the foundation of the house. So my first focus is improving the service. That's what we have to sell. It's not on nickel and diamond. I'm not trying to go cheap. I'm spending more money than this company has ever spent. Also, I can provide a good service out on the street and rebuild our reputation. That's my goal. And then you kind of had four or five thoughts there.

1:06:36Speaker 7

What's going to happen to rates at the end of 2029? Have you given any guidance to the city?

1:06:43 – 1:08:10Speaker 17

I mean, we can sit down and have that conversation. Right now, it's been mostly around service. I'm four weeks into my CEO role. my hope is we' re going to be the most efficient waste hauling company in the state of michigan we' re the largest independent hauler in the state of michigan but we' re going to be using technology we' ve got third eye cameras now on every truck we' re switching away from two-man rear load trucks right now we run 280 two-man rear load trucks i just bought 91 automated side loaders with one person those 91 trucks are going to produce about 1100 units per day of service our existing fleet averages about 650 to 750 stops per day so with my 91 trucks I' m going to be able to scrap 120 trucks that are high cost maintenance high downtime and two men or women on a truck twice the labor to do 30 percent less production so my goal is to the cost over the next six months so that we are the most competitive company in this region I fully intend on growing this business and when you' re bidding on municipal work it' s usually unfortunately just lowest price wins and so I got to get my costs under control so that I can beat everybody else out there so I' m not looking to double the price and lose a bunch of business my goal is to provide the most efficient level of service and a good reputation.

1:08:11 – 1:08:39Speaker 7

Well, I appreciate that, and your comments are well received. But before I give my consent, I really want to better understand the risks. Now, I'm not suggesting we should unilaterally oppose this transaction, but what I am saying is that I don't want to just open the door, sign the requested form, and assume that the incentives of your new owner will be aligned with the interests of our residents, which is why, President Carlock, I will be abstaining from this vote.

1:08:43Speaker 6

Thank you very much, Mr. Blair. Next up, Mr. Lindberg.

1:08:46 – 1:09:34Speaker 12

Thank you very much, President Carlock. Thank you very much for coming here tonight, and thank you very much for your apology. I do have one question for you, so as you're very much well aware, neighborhoods come in many shapes and sizes. Some are very simple grids. Others are the exact opposite of grids where the streets go in many different directions. There's cul-de-sacs, nooks and crannies everywhere, dead ends and whatnot. And without due diligence, it is very easy for a driver, perhaps one that's taking over a route for the day or whatnot, to miss that, because I've gotten complaints from residents that are on cul-de-sacs and whatnot, say, hey, I got missed this week and whatnot. So my question for you is, do your trucks, perhaps your new ones, have any sort of GPS tracking that alerts the home base or the driver that perhaps a street or cul-de-sac has been missed?

1:09:34 – 1:11:12Speaker 17

Yeah, so what we're in the middle of is... we' re starting in livonia and dearborn heights with a pilot I' ve engaged with a company I used to do a lot of business with called third eye technologies it' s the camera system it' s got ai technology on it that integrates well with gps so what we' ll do is we will upload your parcel DATA INTO OUR ROUTE MAPPING SOFTWARE. YOU'LL GET A DOT FOR EVERY HOME WITHIN YOUR COMMUNITY ON THE STREET. IT'S LIKE A GOOGLE EARTH VIEW. YOU'LL SEE THE PARCELS ON THE PARCEL MAP. YOU'LL SEE A DOT. we will get a service confirmation. When we extend the arm and dump a container, it'll turn that dot green on a map and we can create a portal for you and your staff to be able to look. So as, and this thing updates like every 15 seconds, the truck is pinging. So you'll see the dots turning green throughout the day and you'll know where we've been and where we've not. And then the driver will log bulky items and not outs and those will turn red upon confirmation. So yes, the technology is out there to roll that out. To me, that's a nice to have on top. My focus these last four weeks has been on staffing and getting the new trucks on. And then what you're talking about is where I'm trying to get to over the next six months with the nice to haves. But, yes, we would like to create a portal for every one of our communities where your staff has access to it. And then you type in an address, it'll take you right to the video clip, a 10-second video clip of that service confirmation. So you'll have video evidence of every service we do or do not perform.

1:11:13Speaker 12

All right. Thank you very much.

1:11:17 – 1:13:59Speaker 3

Thank you very much, Mr. Lindberg. Mr. Mayor. Thank you, President Kahlak. I... I had a chance to meet Mr. Johnson a week or so ago, and I can tell you that I heard the same sort of thing, which was a recognition of responsibility and a plan, and what I thought was a thoughtful plan, not a we hope to do better or we're going to have a meeting tomorrow and rah-rah the team just a little bit differently, but assets deployed, a significant financial investment, Um, and, uh, those are things that we can all track and see. Right. And so I appreciated it. Um, obviously appreciate the, uh, the support of the city and, and, and Brett again, uh, you know, you've been, uh, an excellent representative of all the iterations we've had, uh, with this organization. Uh, I always say if Jody and Nathan, because no one's mentioned Nathan, but Nathan's usually the very front line of an angry call or, um, an angry email. because I quickly send those to him because he's so good at those and also handles usually most of the all the social media responses if they're happy I'm happy right because they're usually the front line to the residents and so I think you know I hear Mr. Blair's comments Mr. Blair is one of the most thoughtful members of the council you know I would just challenge that thinking to say you know what If we don't do this, we don't guarantee ourselves any better service, right? And so I think there's either an understanding of the fact that you are all committing and doubling down. Your background is in this field. You've exhibited, I think, a commitment to the community relative to the investment in the infrastructure. And this council and the city, we will make sure that we hold you accountable. It isn't a free service to our residents. They pay for it. and they want to receive it. So I feel very good about this comparative to where we were six months ago. Nathan and I talk about this regularly. A lot of times we'll call in our office with just a fake phone call to see how long the hold times are. We track those. We report those back because we want to be ahead of it. So we have seen at our end significant improvement, but obviously two of the seven council members here have had problems in the last few months, and so it needs to have a continuing focus for your attention. But But I think when you hear the kind of company that they partnered with, the kind of investment that's happening, that's an indication that there's a genuine desire to improve the service level here. And so hopefully the council will support this tonight. And our job as an administration is to make sure that the progress continues in this form and fashion. Thank you.

1:14:01Speaker 6

Thank you very much, Mr. Mayor. We do actually have one more comment from Ms. Neubauer.

1:14:05 – 1:15:29Speaker 2

Thank you, President Kerlock. This is maybe a question for our legal counsel, or maybe you can answer it. Just so that I'm clear, and it's my understanding that this is, as I said earlier, just procedural in order to assign the rights and duties of the contract to the new owner. So if there is a default in the contract, we still have the remedies available to us in the city to enforce those POSSIBLE BREACHES LIKE I HAD MENTIONED IN MY FIRST COMMENTS. WHEN THERE WAS A FIRST TRANSITION TO THIS CONTRACT, I CAN'T EVEN REMEMBER WHEN IT WAS. very heavy for a long time on our residents. But I did have an opportunity to review the entire contract, and we are allowed to charge for every missed delivery. We are allowed to charge for every damaged, whatever it was. I mean, I never submitted a claim, but when they knocked over my basketball hoop with the It's not the claw that's a toy story for version of the word the thing The arm that ate my basketball hoop but that you know Those are things that we have remedies for those continues and the only thing that we're voting on Today under this agreement is to give you the authority and the ability to continue service in our city Am I correct in that 100% accurate? Okay.

1:15:29 – 1:15:51Speaker 9

Yeah, it's a double-down we even when they first bought from GFL and We never gave, and obviously maybe Dan can speak to that, we never gave full control to priority. We gave a temporary, so this is also the assigning of that. We never fully went through that because we wanted, you know, we put some stipulations in place to indicate that, and we feel that they're in a place now where, you know, we should give the full control.

1:15:52 – 1:16:28Speaker 2

Yeah, there was a probationary period that we had done. I think it was 90. I can't even remember what it was, but we had enforced that the last time. It wasn't carte blanche. And like I said, we still have all the remedies available as the city if there is any kind of breach. Not that we're anticipating it, but I just want to make it clear that those aren't removed. This is just a procedural issue. So that we don't have interrupted service so that there isn't anything that you know you can say we defaulted are you defaulted on so it's kind of just a legal change of ownership. Yeah, the writing of the needle kind of thing so okay that was my question.

1:16:29Speaker 6

Thank you very much. Miss many know.

1:16:33 – 1:16:53Speaker 13

Yes, thank you, President Karolik. I just have a quick question for you regarding the change in legal structure. So is TPG now a fully owning priority? Well, what is the breakdown, the change in control for a majority share ownership? What is the legal structure now of this new company?

1:16:54 – 1:18:04Speaker 17

Yeah, so back in February, there was a major event. So we had our original founder. He owned 60% of the company. And then he had taken on debt equity or equity debt. And so Aries Capital was brought in. Aries Capital owned a percentage of the company. Then another private equity firm, TRP, was brought in. They infused more cash into the business. And then some point in 2025, TPG was brought in. They infused more capital back into the business. And then the business burnt through all that capital. And I won't get into all the details. The founder was removed from control of the company, now owns 0% of the company. TPG recapitalized the business bought out all the debt from the other outstanding owners Aries did stay on as a minority minority owner Just because they they weren't able to collect any of the debt that was owed to them when the deal closed I can't I don't know exactly what percentage they own but they are a minority holder. So TPG owns the largest share I own a small share as well. I

1:18:04Speaker 13

And then Aries is still listed as minority ownership.

1:18:09Speaker 17

They're called a secondary. I'm not a finance person.

1:18:13Speaker 13

So there is a structure then. The owners are really TPG. Aries Capital has some portion and then yourself are the owners of this new company. Okay. Thank you.

1:18:24 – 1:19:19Speaker 6

Thank you very much, Ms. Menino. I don't see any further council comments or questions on this. I had a motion by Vice President Mangioli, seconded by Ms. Neubauer. So I'll read the resolution. To approve the resolution in the packet with the recitals, now therefore be it resolved that the City Council of the City of Rochester Hills hereby approves the requested consent to change of control and consent to assignment with priority waste, LLC, and TPG. Be it further resolved, that the city administration is directed to continue working with the priority waste team to hold them accountable to all current contractual terms, ensuring they fulfill operational performance improvements, including modernized fleet reliability and the prompt resolution of outstanding cart deliveries. Based on Mr. Blair's comments earlier, I'm gonna ask Ms. Bowen to take roll call vote on this one.

1:19:22Speaker 11

President Carlock?

1:19:24Speaker 11

Vice President Mangioli?

1:19:32Speaker 11

Ms. Neubauer? Yes. Mr. Scalzi?

1:19:35Speaker 6

Yes. Thank you very much. That motion passes with the majority vote.

1:19:40 – 1:20:03Speaker 9

thank you. thank you Mr. Chair if I may one quick comment to further talk about the resident side of it priority waste on top of being a sponsor for festival hills is also going to be staffing there for residents to come up and have But residents will have the opportunity to talk with Priority Waste as well. That will be my job.

1:20:04Speaker 6

You'll be the only one not having fun at festivals. Perfect. Thank you very much for coming out to speak with us. Thank you.

1:20:15Speaker 4

Yeah, I'm excited.

1:20:22 – 1:20:47Speaker 6

Looking up, yes. All righty, that brings us to the next item, item 2026-0283, Request for Purchase Authorization Facilities Contract Blanket Purchase Order for Janitorial Service in the amount not to exceed $512,734 for a three-year term to expire June 30, 2029, AmeriClean, Inc., Chesterfield Township, Michigan. Mr. Vizenko.

1:20:48 – 1:21:05Speaker 10

Good evening, President Carlock, Vice President Mangioli, City Council, Mayor Burnett, Um, tonight facilities, we're looking to get a approval to enter into a three year contract with, uh, uh, AmeriClean to continue our janitorial services at three of the city owned buildings. And I'm here to answer any questions you may have.

1:21:07Speaker 6

Thank you very much. Uh, we do have some council comments, questions, Mr. Blair.

1:21:11 – 1:21:30Speaker 7

Thank you, president Carlock. I, for the last almost seven years, um, city hall has always been spotless and the AmeriClean workers are always polite. and attentive to every detail, and I wholeheartedly support another three years doing business with them. I move that motion.

1:21:30Speaker 6

Thank you very much, Mr. Blair. I have a motion by Mr. Blair, seconded by Councilwoman Neubauer, and we have some comments by Councilwoman Neubauer.

1:21:38 – 1:22:02Speaker 2

I JUST WANTED TO SAY THE SAME THING THAT COUNCILMAN BLAIR SAID. THE STAFF IS AMAZING. THEY DO AN AMAZING JOB. THEY'RE GREAT TO HAVE AROUND. THEY CHASED A CHIPMUNK OUT OF THE YOUTH COUNCIL'S ROOM WHEN WE HAD A MEETING. THEY GO ABOVE AND BEYOND, AND WE'RE REALLY THANKFUL FOR THEM. AND THEY MAKE THE KIDS LAUGH WHEN THEY FREAK OUT ABOUT CHIPMUNKS AND BUGS AND THINGS LIKE THAT. SO WHOLEHEARTEDLY SUPPORT. THANK YOU.

1:22:03 – 1:23:07Speaker 6

Thank you very much. I don't see any other council comments or questions resolved that the Rochester Hills City Council hereby authorizes a contract blanket purchase order for janitorial services to AmeriClean Inc. Chesterfield Township, Michigan. in the amount not to exceed $512,734 for a three-year term to expire June 30th, 2029, and further authorizes the procurement manager to execute an agreement on behalf of the city. Further resolved that the city's acceptance of the proposal and approval of the award of a contract shall be contingent and conditioned upon the party's entry into and the execution of a written agreement acceptable to the city. All those in favor? Aye. Any opposed? That motion passes. Thank you. Thank you. All right, that brings us to any other business. I don't see any council members wishing to extend this meeting. Next meeting date is regular meeting Monday, July 13th, 2026 at 7 p.m. right here in the auditorium. I have a motion by Councilwoman Neubauer, seconded by Vice President Mangioli to adjourn. All those in favor? Aye. Any opposed? Thank you.

This transcript was automatically generated from the official public meeting video and is presented unedited. It reflects remarks made on the public record by elected officials, staff, and public commenters. Transcript accuracy may vary; view the original recording for reference.