View the PDF version Google Docs PDF Viewer View the Video
CITY OF MUSKEGON
CITY COMMISSION MEETING
JUNE 24, 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, June 24, 2014.
Mayor Gawron opened the meeting with prayer from Mr. George Monroe from
the Evanston Avenue Baptist 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 Eric Hood, Willie German, Dan Rinsema-Sybenga, Byron Turnquist,
and Ken Johnson, City Manager Franklin Peterson, City Attorney John Schrier,
and City Clerk Ann Marie Cummings.
2014-46 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the June 9th Commission
Worksession Meeting, and the June 10th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Extension of the Moratorium for Establishments of Medical Marijuana
Facilities. CITY CLERK
SUMMARY OF REQUEST: On March 11th the City Commission declared an
emergency moratorium on the establishment of any medical marijuana facility
for 120 days so staff and counsel may create an appropriate ordinance
regulating medical marijuana facilities for consideration by the City Commission.
Staff is requesting a 60-day extension of the moratorium so a proposed
ordinance may be presented to the City Commission at a meeting in August.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To adopt the resolution extending the moratorium.
C. Wheel Loader. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to purchase one Wheel Loader from
Michigan CAT off of the Mi-Deal State Purchasing contract.
FINANCIAL IMPACT: A net price $151,900; $187,900 price of the new loader
minus $36,000 trade-in value of the loader we have.
BUDGET ACTION REQUIRED: None, amount is what was budgeted.
STAFF RECOMMENDATION: Authorize the purchase.
E. Selection of Vinyl Siding Supplier for Fiscal Year 2014-2015.
COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the Community & Neighborhood Services
Department’s selection of the Vinyl Siding Supplier for 2014-2015 fiscal year.
After reviewing all bids, the department selected the bid from Keene Lumber
Co., located at 346 W. Laketon Ave., Muskegon, MI, for the price of $46.95 per
building square for both white and color siding.
The Community & Neighborhood Services Department received two additional
bids from:
1. Sethco Lumber, Muskegon White - $47/sq. Color - $49/sq.
2. Home Acres, Muskegon White - $50/sq. Color - $51/sq.
FINANCIAL IMPACT: Funding will be disbursed from the 2014-2015 Community
Development Block Grant Vinyl Siding fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the request.
Motion by Commissioner Hood, second by Commissioner Johnson, to accept
the Consent Agenda as read minus items D and F.
ROLL VOTE: Ayes: Hood, Spataro, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
2014-47 ITEMS REMOVED FROM THE CONSENT AGENDA:
D. Mini Excavator. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to purchase one Mini Excavator from
Michigan CAT, the lowest qualified bidder.
FINANCIAL IMPACT: $46,100.
BUDGET ACTION REQUIRED: None, this purchase was in the 2013/14 CIP for the
Equipment Division.
2
STAFF RECOMMENDATION: Authorize staff to purchase one 4½ ton Mini
Excavator from Michigan CAT.
Motion by Commissioner German, second by Commissioner Johnson to
approve staff to purchase one 4½ ton Mini Excavator from Michigan CAT.
ROLL VOTE: Ayes: Spataro, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
F. “Rule of 1” Question on General Ballot. CITY MANAGER
SUMMARY OF REQUEST: To approve the resolution to place the Civil Service
procedure for filling positions of employment by way of promotion to eliminate
the “Rule of 1” for adoption by the voters of the City of Muskegon.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To adopt the resolution to place the elimination of
the “Rule of 1” question on the General Ballot.
Motion by Vice Mayor Spataro, second by Commissioner Rinsema-Sybenga to
adopt the resolution to place the elimination of the “Rule of 1” question on the
General Ballot.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Spataro
Nays: None
MOTION PASSES
2014-48 NEW BUSINESS:
A. Heritage Square Development LLC – Construction Loan Agreement and
Other Document Approval. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: At the March 25, 2014, meeting, the Commission
authorized staff and the City Attorney to proceed with the necessary
documents to complete the loan transaction with Mr. Post for the construction
of two townhouses at Heritage Square, on Clay Avenue (as well as explore the
option of using HOME funds for an additional unit, which remains a possibility).
An agreement has been reached to loan Mr. Post $500,000 from the City’s
“economic development fund” for the construction of the two townhouses (just
to the West of the existing four units). The Construction Loan Agreement, as well
as the Construction Loan Note, Commercial Construction Mortgage,
Commercial Guaranty (which is Mr. Post’s personal Guaranty), Security
Agreement, Assignment of Rents and Leases, and Assignment of Plans and
3
Specifications have been prepared and are ready for Commission approval.
FINANCIAL IMPACT: The City will loan $500,000 to Mr. Post to complete two
townhouses. The funds must be substantially expended by December 2014 (with
the project fully completed by February 28, 2015). Both townhouses are to be
sold within 24 months of the date of the Agreement (if not, “interest shall begin
accruing on the Construction Note retroactively from the Effective Date of this
Agreement at the rate of 5% per annum”).
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Construction Loan Agreement, as
well as the Commercial Construction Mortgage, Commercial Guaranty (which is
Mr. Post’s personal Guaranty), Security Agreement, Assignment of Rents and
Leases, and Assignment of Plans and Specifications and authorize the Mayor
and Clerk’s signature’s on the documents, as well as authorize staff to sign any
and all other documents necessary for the loan closing (e.g., closing statement,
escrow agreement, Transnation documents).
Motion by Vice Mayor Spataro, second by Commissioner Rinsema-Sybenga to
approve the Construction Loan Agreement and the other agreements and
documents, and authorize the Mayor and Clerk’s signatures on the documents,
as well as authorize staff to sign any and all other documents necessary for the
loan closing.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Spataro, and German
Nays: None
MOTION PASSES
B. Farmer’s Market Rentals. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: City staff would like to allow public rental of certain
areas of the new Farmer’s Market facility. The proposed rental rates are shown
on the 2014 Farmer’s Market Rental Rate Sheet. There would be five separate
areas of the Farmer’s Market available for rent as shown on the Farmer’s Market
site map.
Staff is requesting approval of the rental rates listed.
FINANCIAL IMPACT: Facility rental would generate additional income for the
market.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the rental rates, and
incorporation of the rates into the City’s fee schedule. Staff also recommends
that the Commission authorize staff to negotiate in-kind services in lieu of a
portion or all of the rental fee, when appropriate.
4
Motion by Commissioner Rinsema-Sybenga, second by Commissioner German
to approve the rental rates and incorporate the rates into the City’s fee
schedule, and allow staff to negotiate in-kind services in lieu of a portion or all of
the rental fee, when appropriate.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Spataro, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
C. Police Review Board Minority Coalition. CITY CLERK
SUMMARY OF REQUEST: A letter of understanding between the Muskegon
Minority Coalition and the City of Muskegon was adopted on November 10,
1998. Some items in the original letter are now obsolete. Commissioner
Rinsema-Sybenga, Commissioner Hood, staff, and members of the Minority
Based Organizations met to discuss needed changes.
The two most significant changes the organizations agreed to are as follows:
Place the remark “inactive/no longer exists” next to Muskegon Urban
League and Ad Hoc Committee for Equality and Justice who no longer
exist.
Remove term limits.
Organizations have been asked to obtain approval from their respective boards
and obtain signatures from an authorized individual(s).
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To authorize the Mayor and Clerk to sign the First
Amendment to the Letter of Understanding between the Muskegon Minority
Coalition and the City of Muskegon dated November 10, 1998.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga
to authorize the Mayor and Clerk to sign the First Amendment to the Letter of
Understanding between the Muskegon Minority Coalition and the City of
Muskegon dated November 10, 1998.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Spataro, German, Rinsema-
Sybenga, and Turnquist
Nays: None
MOTION PASSES
D. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish the Following: PUBLIC SAFETY
5
254 Monroe
1245 Fleming (garage only)
30 E. Clay
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within 30 days. It
is further requested that administration be directed to obtain bids for the
demolition of the structures and that the Mayor and City Clerk be authorized
and directed to execute a contract for demolition with the lowest responsible
bidder.
FINANCIAL IMPACT: CDBG Funds for 254 Monroe and 1245 Fleming (garage
only), and General Funds for 30 E. Clay.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Vice Mayor Spataro, second by Commissioner German to concur
with the Housing Board of Appeals decision to demolish 254 Monroe and 1245
Fleming (garage only).
ROLL VOTE: Ayes: Gawron, Hood, Spataro, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
Motion by Vice Mayor Spataro, second by Commissioner Rinsema-Sybenga to
concur with the Housing Board of Appeals notice and order to demolish 30 E.
Clay.
ROLL VOTE: Ayes: Hood, Spataro, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
E. Resolution to Place Question to Increase Tax Levy on Ballot. CITY
MANAGER
SUMMARY OF REQUEST: To approve the resolution for a proposed Charter
Amendment to allow the City Commission to levy up to 14 mills for municipal
purposes. If adopted, this question will be placed on the General Ballot for
consideration by the voters.
FINANCIAL IMPACT: None.
6
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To adopt the resolution to place a question on the
ballot to levy up to 14 mills for municipal purposes.
Motion by Vice Mayor Spataro, second by Commissioner Rinsema-Sybenga to
adopt the resolution to place a question on the ballot to levy up to 14 mills for
municipal purposes.
ROLL VOTE: Ayes: Spataro, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
2014-49 CLOSED SESSION:
A. Attorney-Client Privileged Communications.
B. City Manager’s Evaluation.
Motion by Commissioner Johnson, second by Commissioner German to go into
Closed Session at 6:45 p.m. to discuss Attorney-Client Privileged
Communications and City Manager’s Evaluation.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Spataro, and German
Nays: None
MOTION PASSES
Motion by Vice Mayor Spataro, second by Commissioner Rinsema-Sybenga to
come out of Closed Session at 7:25 pm.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Spataro, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 7:25 pm.
Respectfully submitted,
Ann Marie Cummings, MMC
City Clerk
7
Sign up for City of Muskegon Emails