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CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 13, 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, May 13, 2014.
Mayor Gawron opened the meeting with a prayer from Vice Mayor Spataro
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, and Ken
Johnson, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Marie Cummings.
Absent: Commissioner Eric Hood (excused)
2014-35 HONORS AND AWARDS:
A. Muskegon High School Big Reds Basketball Team – 2014 State
Champions.
B. Deshaun Thrower – Hal Schram Mr. Basketball Trophy.
Mayor Gawron congratulated the coach and members of the Muskegon High
School Big Reds Basketball Team as the 2014 State Champions. Deshaun
Thrower was unable to attend the meeting due to being away at school.
2014-36 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the April 22nd City Commission
Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Memorandum of Understanding – Justice Assistance Grant. PUBLIC
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SAFETY
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the Director and the City Manager to enter into an
agreement with the City of Muskegon Heights and Muskegon County in regards
to the disbursement of the FY 2014 Justice Assistance Grant. It if further
requested that the Mayor be authorized to sign the Memorandum of
Understanding. Note that time is of the essence as this grant requires a 30 day
governing body review period before the grant submission and the grant
deadline is June 10.
Although the Bureau of Justice Assistance has designated us as being in a
disparate funding situation due to the County providing more than 50% of the
jail facilities, our proposal is to keep the allocations exactly as they initially came
down from the BJA which is as follows: County of Muskegon $0; City of
Muskegon $30,709 and City of Muskegon Heights $19,903. Note that BJA uses
crime data versus population in making these allocation decisions.
The City of Muskegon portion is planned to be used in continuation of the
manner in which the previous year’s JAG funding was used which is for the
prosecution of city ordinance cases dealing primarily with neighborhood issues.
A prosecutor was hired specifically for this under a previous fiscal year JAG
Grant.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of this request.
D. Interlocal Agreement – 2014 Port Security Grant. PUBLIC SAFETY
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the Director and the City Manager to enter into an
agreement with the County of Muskegon in regards to the 2014 Port Security
Grant. It is further requested that the Mayor be authorized to sign the Interlocal
Agreement.
The City of Muskegon portion of this project will be approximately $90,000 and is
planned for Fire Communications Equipment and Police Cyber-Crime
Equipment and Training. The grant requires a 25% local match. Thus the federal
dollars will be approximately $67,500 and the local match approximately
$22,500.
FINANCIAL IMPACT: The local match is planned to either come from existing
budget line items or to be in-kind.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of this request.
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E. Farmers’ Market – ATM Lease. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Fifth Third Bank has donated a significant amount to the
new downtown Muskegon Farmers’ Market. They also anticipate partnering
with the Farmers’ Market in the future for educational endeavors and events.
Due to this partnership, Fifth Third is providing an ATM at the new Farmers’
Market. The location of the ATM will be to the north of the main entrance to the
Farmers’ Market building office/commercial kitchen.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the lease agreement and authorize the
Mayor and Clerk’s signatures.
G. Finance Division Restructure. FINANCE
SUMMARY OF REQUEST: As described in the memo, staff is recommending the
restructure of the Finance Division. The main elements of this restructure are: 1)
appointment of Kenneth Grant as City Treasurer, 2) elimination of the Income
Tax Administrator/Deputy Treasurer position to be replaced with the Treasury
Services Supervisor position.
FINANCIAL IMPACT: The proposed restructure will save approximately $33,000
annually.
BUDGET ACTION REQUIRED: We anticipate this restructure to be incorporated
into the 2015 budget process.
STAFF RECOMMENDATION: Approval.
I. Charter Communications – METRO Act Permit. ENGINEERING
SUMMARY OF REQUEST: Approve the request for a permit from Charter
Communications and authorize the Mayor to sign the permit.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the permit and sign the documents.
Motion by Vice Mayor Spataro, second by Commissioner Johnson to adopt the
Consent Agenda with the exception of items C, F, and H.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
Spataro
Nays: None
MOTION PASSES
2014-37 ITEMS REMOVED FROM THE CONSENT AGENDA
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C. Memorandum of Understanding – 2014 Project Safe Neighborhoods.
PUBLIC SAFETY
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the Director and the City Manager to enter into an
agreement with the County of Muskegon and City of Muskegon Heights in
regards to the 2014 Violent Gang and Gun Reduction (Project Safe
Neighborhoods) Grant. It is further requested that the Mayor be authorized to
sign the Memorandum of Understanding on behalf of the City of Muskegon.
The City of Muskegon portion of this project, should the grant be approved, will
be $60,640 which will be used for targeted enforcement activities at gang/gun
crimes as well as analysis leading to those areas needing this targeted
enforcement, above what would be possible under our regular budget.
This is a multijurisdictional project involving the County Prosecutor, Muskegon
and Muskegon Heights Police Departments, the U.S. Attorney’s Office as well as
other agencies to address not only the enforcement piece but also the
prosecution of gang and gun activities at the highest level possible. The total
grant amount being applied for is $300,000.
FINANCIAL IMPACT: None, this grant does not require a match.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of this request.
Motion by Vice Mayor Spataro, second by Commissioner German to adopt the
agreement regarding the Safe Neighborhoods Grant.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Spataro, and
German
Nays: None
MOTION PASSES
F. Farmers’ Market – First Amendment to Purchase Agreement.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Due to the weather conditions during the winter of
2013-2014, the construction of the new downtown Farmers’ Market has taken
longer than anticipated. Although the Farmers’ Market was able to open as
scheduled, on May 3, 2014, the entire construction will not be complete until just
prior to the Grand Opening on May 24, 2014. Therefore, it was necessary to
enter into an “Amendment to Purchase Agreement”. The Amendment allows
for the Farmers’ Market operation prior to the official closing on the property,
with the City “fully responsible for any and all liability related to operating the
farmers’ market” during that time. The closing is moved to July 3, 2014, or
before.
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FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the “First Amendment to Purchase
Agreement” and authorize the City Manager’s signature (after the fact).
Motion by Commissioner German, second by Commissioner Johnson to
approve the “First Amendment to Purchase Agreement” and authorize the City
Manager’s signature after the fact.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Spataro, German, and Rinsema-
Sybenga
Nays: None
MOTION PASSES
H. Small Distiller License. CITY CLERK
SUMMARY OF REQUEST: The Liquor Control Commission is seeking local
recommendation on a request from Cody Wasilchenko, Distillery 43 LLC, for a
Small Distiller License to be located at 435-441 W. Western Avenue.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Vice Mayor Spataro, second by Commissioner Rinsema-Sybenga to
approve the small distiller license request.
ROLL VOTE: Ayes: Johnson, Gawron, Spataro, German, Rinsema-Sybenga, and
Turnquist
Nays: None
MOTION PASSES
2014-38 NEW BUSINESS:
A. 2014-2015 Healthcare Renewal. FINANCE
SUMMARY OF REQUEST: It is time to renew the City's healthcare coverage for
2014-15 plan year (6/1/14- 5/31/15). Renewal premiums for the City's current
healthcare program came in at an 11.68% increase over the current year.
However, by changing to an 80/20 coinsurance plan and increasing the
deductible from $1,000/$2,000 to $2,000/$4,000, the net result is a premium
decrease of 2.62% from the current year. Last year we experienced a 5.04%
increase and in 2012-13 the increase was 7.90%. In comparative terms, many
employers are experiencing sharp double-digit rate increases. Also, the City’s
healthcare costs remain well below the “hard cap limits” set by PA 152 and
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remain cost competitive with the standards set by EVIP for new hires. These are
good independent indicators that the City’s program is cost-effective.
For 2014-15, the City will continue to pay the HRA deductible if the employee
and spouse completed the four-step wellness initiative prior to April 30th; non-
participants in the wellness program will continue to pay the first $500 (single)/
$1,000 (double/family) of the deductible.
FINANCIAL IMPACT: Following is an estimate of gross premium costs for the Priority
Health HMO program compared with the current healthcare plan year:
2014‐15 2013‐14
Single Double Family Single Double Family
Monthly Premium $ 421.37 $ 948.08 $ 1,137.70 $ 432.74 $ 973.67 1,168.40
Rate Change (2.62%) (2.62%) (2.62%) 5.04% 5.04% 5.04%
Annual Premium 5,056.44 11,376.96 13,652.40 5,192.88 11,684.04 14,020.80
Current # Employees 33 34 118 33 34 118
Total Annual Premium 166,862.52 386,816.64 $ 1,610,983.20 171,365.04 397,257.36 $ 1,654,454.40
2,164,662.36 2,223,076.80
Add: HRA Deductibles Paid by City 160,000.00 134,356.52
Less: 10% Employee Premium Copays (216, 466.23) (222, 307.68)
Equals: Employer Cost $2,108,196.13 $2,135,125.64
2014 PA 152 Hard Cap Limits 2013 PA 152 Hard Cap Limits
$ 5,857.58 $ 12,250.00 $ 15,975.23 $ 5,692.50 $ 11,385.00 $ 15,525.00
193,300.14 416,500.00 1,885,077.14 187,852.50 387,090.00 1,831,950.00
$2,494,877.28 $2,406,892.50
Full-time City employees pay 10% of the above premium costs through payroll
deduction.
BUDGET ACTION REQUIRED: Employee and retiree healthcare costs will be
included in the forthcoming 2014-15 budget.
STAFF RECOMMENDATION: Authorize staff to execute documents with Priority
Health to renew employee healthcare coverage for the coming year with an
80/20 coinsurance and $2,000/$4,000 deductible.
Motion by Commissioner Johnson, second by Commissioner German to
authorize staff to secure agreement with Priority Health to renew employee
healthcare coverage for the coming year.
ROLL VOTE: Ayes: Gawron, Spataro, German, Rinsema-Sybenga, Turnquist, and
Johnson
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Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:15 p.m.
Respectfully submitted,
Ann Marie Cummings, MMC
City Clerk
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