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CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 8, 2014
CITY COMMISSION CHAMBERS @ 5:30 P.M.
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, April 8, 2014.
Mayor Gawron opened the meeting with prayer from Pastor Marcy Miller from
the Samuel Lutheran Church after which the Commission and public recited the
Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Gawron, Vice Mayor Lawrence Spataro,
Commissioners Willie German, Dan Rinsema-Sybenga, Byron Turnquist, Ken
Johnson, and Eric Hood, City Manager Franklin Peterson, City Attorney John
Schrier, and City Clerk Ann Marie Cummings.
2014-26 HONORS AND AWARDS:
A. Recognition of Dave Alexander.
Mayor Gawron recognized MLive reporter Dave Alexander, thanked him for his
coverage of the City of Muskegon, and congratulated him on his new position
with MLive.
2014-27 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the March 25th City Commission
Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. National Bike to Work Week Proclamation. CITY CLERK
SUMMARY OF REQUEST: The City Commission is asked to adopt the
proclamation supporting National Bike to Work Week, May 12 through May 16,
2014.
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FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the proclamation.
D. Concession/Vending Contract for City of Muskegon Parks. PUBLIC
WORKS
SUMMARY OF REQUEST: Staff is asking permission to enter into a one-year
contractual agreement with Branden M. Reed, per proposal, at/between Pere
Marquette Beach and Kruse Park, located within the City of Muskegon for selling
bottle water and carbonated beverages.
FINANCIAL IMPACT: Contract revenue will be 10% of gross receipts, per
Concession/Vending Agreement.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize DPW staff to enter into a
concession/vending agreement with Branden M. Reed.
F. Bella Dawg Concession Contract for City of Muskegon Parks. PUBLIC
WORKS
SUMMARY OF REQUEST: Staff is asking permission to enter into a one-year
contractual agreement with Steve Hamstra of Bella Dawg at various City of
Muskegon parks/facilities, as determined by staff, located within the City of
Muskegon to sell hot dogs and other minor snacks from a mobile cart.
FINANCIAL IMPACT: Concession revenue is 10% of gross receipts. Commission
revenue in 2013 was $276.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize DPW staff to enter into a concession
agreement with Steve Hamstra of Bella Dawg.
I. Aggregates, Highway Maintenance Materials and Concrete. PUBLIC
WORKS
SUMMARY OF REQUEST: Award the bids as listed.
FINANCIAL IMPACT: $441,348 based on quantities requested in bid at 2014
quotes (except concrete mix).
BUDGET ACTION REQUIRED: None, funds appropriated in several budgets.
STAFF RECOMMENDATION: Recommend approval of bids as outlined.
J. Amendment to Brownfield Plan – Terrace Point Landing, LLC and
Downtown Development Authority (DDA) Pass-Through Agreement.
PLANNING & ECONOMIC DEVELOPMENT
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SUMMARY OF REQUEST: The Brownfield Plan for Terrace Point Landing, LLC was
adopted by the Brownfield Redevelopment Authority (BRA) and the City
Commission in 2013 for purposes of reimbursing the developer for “eligible
expenses” incurred in association with the project (approximately $12 million
investment overall). In addition, the DDA and City Commission approved the
amendment of the DDA Plan to allow for “100% of the difference between the
1988 assessed value and the 2013 assessed value for that parcel and 25% of any
increase in the assessed value beyond the 2013 tax year” (“parcel” being that
identified for the Terrace Point Landing LLC project). The BRA Plan was
forwarded to the Michigan Economic Development Corporation (MEDC) for
review and approval. City staff and the developer were notified the week of
March 24 that the MEDC was not recommending their participation in the Plan.
After several discussions and careful consideration, it was determined that the
project can proceed financially without the MEDC participation, providing the
BRA tax capture is the full 100% (rather than the 75% originally contemplated).
FINANCIAL IMPACT: Brownfield Tax Increment Financing (100% of the capture)
will be used to reimburse the developer for “eligible expenses” incurred in
association with development of the Terrace Point Landing project (see
estimated tax capture and payment schedule). The actual development will
generate future property taxes for the City, as well as income tax from those
living in the development.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To endorse the BRA and DDA approvals for the BRA
amendment and DDA amendment.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority and
Downtown Development Authority met on April 2, 2014, and approved both the
BRA Plan amendment and the DDA Plan amendment.
K. Permanent Traffic Control Order. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to install “1 (one) hour parking” signs from
8:30 am to 5:30 pm, where permissible to install, on Terrace Street, Pine Street,
Spring Street, Walton Avenue, and Myrtle Avenue per Traffic Control Work Order
#14-(2014).
FINANCIAL IMPACT: Cost of signs and man-power to install, if approved.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize DPW staff to install “1 (one) hour parking”
signs on Terrace, Pine, Spring, Walton, and Myrtle.
L. Muskegon Firefighters Union – Contract Settlement. CITY MANAGER
SUMMARY OF REQUEST: The City and MFU have been working on a 5 year
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agreement for the last two months. We have reached a tentative
agreement, and the union had a successful ratification vote in March.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the tentative agreement and to
authorize the Mayor and Clerk to sign the contract.
Motion by Vice Mayor Spataro, second by Commissioner Johnson to adopt the
Consent Agenda minus items C, E, G, H, M, and N.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Spataro
Nays: None
MOTION PASSES
2014-28 ITEMS REMOVED FROM THE CONSENT AGENDA:
C. 2014 Water Treatment Chemical Bids. PUBLIC WORKS
SUMMARY OF REQUEST: Recommend endorsement of lowest responsible bidder
to supply sodium hypochlorite for the water filtration plant.
FINANCIAL IMPACT: Annual cost of $52,207 (based on average annual water
pumped to mains).
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends the Mayor and City Commission
endorse the low bid received and enter into a contract with Alexander
Chemical for sodium hypochlorite for one year, beginning April 14, 2014.
Motion by Vice Mayor Spataro, second by Commissioner Rinsema-Sybenga to
approve the bid with Alexander Chemical for sodium hypochlorite for one year
beginning April 14, 2014.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Spataro, German, and
Rinsema-Sybenga
MOTION PASSES
E. Jay-Boards Concession Contract for City of Muskegon Parks. PUBLIC
WORKS
SUMMARY OF REQUEST: Staff is asking permission to enter into a three-year
contractual agreement with Jason Gorski of Jay-Boards, per proposal, at Pere
Marquette Beach and Harbor Towne Beach, located within the City of
Muskegon for stand-up paddleboard rentals/lessons.
FINANCIAL IMPACT: Contract revenue will be 10% of gross receipts, per
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Concession Agreement. Concession revenue in 2013 was $472.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize DPW staff to enter into a concession
agreement with Jason Gorski of Jay-Boards.
Motion by Vice Mayor Spataro, second by Commissioner Johnson to authorize
DPW staff to enter into a concession agreement with Jason Gorski of Jay-Boards.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Spataro, German, Rinsema-
Sybenga, and Turnquist
MOTION PASSES
G. Lease Proposal for MACkiteboarding at Pere Marquette Park. PUBLIC
WORKS
SUMMARY OF REQUEST: Staff is asking permission to negotiate a three-year lease
agreement (2014, 2015, and 2016) with Steve Negen of MACkiteboarding for a
kiteboard school and shop in Pere Marquette Park at 1955 Beach Street (former
old brown/brick beach house building by Filtration Plant). The negotiations
entail “in-kind” services and/or donation to the Pere Marquette Park/facilities in
lieu of the standard lease payment and/or a combination of both.
FINANCIAL IMPACT: Revenue of $2,500 per year, similar to previous agreements,
and/or a combination of $ and “in-kind” services.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to negotiate a three-year lease
agreement.
Motion by Commissioner Turnquist, second by Vice Mayor Spataro to authorize
staff to negotiate a three-year lease agreement with MACkiteboarding at Pere
Marquette Park.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Spataro, and German
MOTION PASSES
H. Consideration of Bids for Janitorial Services Contract 2014-2017.
ENGINEERING
SUMMARY OF REQUEST: Award the Janitorial Services Contract to Reliant
Professional Cleaning Services out of Grand Haven. The contract would be to
clean City Hall and DPW for the next three years, starting May 1, 2014, until April
30, 2017. Reliant was the lowest responsible bidder with a bid price of $46,740
per year and $140,220 total contract for three years.
FINANCIAL IMPACT: $46,740 per year.
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BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the three-year contract to Reliant
Professional Cleaning.
Motion by Commissioner German, second by Vice Mayor Spataro to award the
three-year contract to Reliant Professional Cleaning.
ROLL VOTE: Ayes: Gawron, Hood, Spataro, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
M. LC Walker Arena Management/Operations Costs. CITY MANAGER
SUMMARY OF REQUEST: In response to a request from the city’s contracted
management firm for the LC Walker Arena, city staff has been working on a
plan to identify temporary funding to offset high utility costs for the LC Walker
Arena.
The facility was built as a hockey arena, but its high operation costs cannot be
sustained by one main hockey tenant alone.
City staff is asking the Commission to approve a one-year agreement with the
management company to provide assistance with utilities effective April 1
2014, and expiring March 31, 2015, with stipulations as follows:
1. An increase in the ticket surcharge equal to $1.00 effective for the 2014-
15 Lumberjacks hockey season, with the proceeds dedicated 50/50 to
electricity and capital maintenance.
2. City to reimburse the management company75% of the net utility costs
each month, up to $15,000 monthly.
3. Management Company to provide City with 20 tickets to each home
game for the City to use to invite Muskegon youth to the hockey games.
Inclusive of all surcharges, the City will be responsible for payment of
$3.00 for each ticket.
4. A plan to be presented to the City Commission prior to December 31,
2014 outlining the long-term viability of the LC Walker Arena, with a
recommendation from staff related to the best long-term use of the
facility.
5. The City reserves the right to terminate this agreement with 30 days
notice.
FINANCIAL IMPACT: Up to $45,000 for FY 13-14 and up to $135,000 for FY 14-15.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request and authorize the Mayor
and Clerk to sign an agreement.
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Motion by Vice Mayor Spataro, second by Commissioner Hood to approve the
request and authorize the Mayor and Clerk to sign the subsequent agreement.
ROLL VOTE: Ayes: Spataro, German, Rinsema-Sybenga, Turnquist, Gawron, and
Hood
Nays: Johnson
MOTION PASSES
N. 2014–15 City Commission Goals/Action Plan. CITY MANAGER
STAFF RECOMMENDATION: To adopt the action plan and direct the city staff to
begin the process of sharing the plan with the public and prepare for
implementation.
Motion by Commissioner German, second by Commissioner Hood to accept the
2014-15 City Commission Goals/Action Plan.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Spataro
Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 6:19 p.m.
Respectfully submitted,
Ann Marie Cummings, MMC
City Clerk
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