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CITY OF MUSKEGON
CITY COMMISSION MEETING
JUNE 9, 2009
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, Michigan at 5:30 p.m., Tuesday, June 9, 2009.
Mayor Warmington opened the meeting with a prayer from Commissioner
Clara Shepherd after which the Commission and public recited the Pledge of
Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioners Steve Wisneski, Chris Carter, Clara Shepherd, Lawrence Spataro,
and Sue Wierengo, City Manager Bryon Mazade, City Attorney John Schrier,
and City Clerk Ann Marie Becker.
2009-49 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, May 26th.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Approval of a Neighborhood Enterprise Zone Certificate. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
certificate has been received from Fred Glancy for the rehabilitation of a
historical home in the McLaughlin neighborhood at 1164 Terrace Street. The
property is located in a Neighborhood Enterprise Zone for Rehab and New
Construction. The application states that the estimated cost for construction will
be $110,000 in materials. The applicant has met local and state requirements for
the issuance of the NEZ certificate. Approval or denial by the City Commission is
required within 60 days of the application date and must be forwarded to the
State Tax Commission.
FINANCIAL IMPACT: Taxation will be 50% of the State average for the next 12
years.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve issuance of the NEZ certificate.
C. Revocation of a Neighborhood Enterprise Zone Certificate. PLANNING
& ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Ashley C. Gill is in violation of the Neighborhood
Enterprise Zone certificate in that the home at 1203 4th Street is no longer owner
occupied and there is a balance owing on the 2008 property taxes. The State
requires that a home with a Neighborhood Enterprise Certificate be owner
occupied and that the property taxes be paid. Staff sent a letter to the owner
advising them of these issues on May 13, 2009 with a deadline of May 28, 2009
with no response to the letter and the 2008 property taxes remain unpaid.
FINANCIAL IMPACT: The property will no longer be able to take advantage of
the certificate number 2006-0974 which allowed taxation at 50% of the State
average for a stated number of years.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve revocation of the NEZ certificate and have
the Mayor and City Clerk sign the resolution and submit it to the State Tax
Commission.
D. Transportation Funding Resolution. CITY MANAGER
SUMMARY OF REQUEST: To adopt a resolution in support of a comprehensive
transportation funding package to maintain and improve Michigan’s roads.
FINANCIAL IMPACT: A comprehensive transportation funding package would
provide significant increased funding to the City, as reflected by these figures
provided by the Michigan Municipal League.
MDOT-MTF Forecast Scenario
AGENCY FY 2008 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
City Reg & Tax Only Estimated Estimated Estimated Estimated Estimated
Muskegon 2,863,728 3,602,691 4,081,113 4,560,426 5,040,673 5,293,145
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To adopt the resolution and distribute it accordingly.
PLANNING & ECONOMIC
F. Addition of a Clause to the IFT Contract.
DEVELOPMENT
SUMMARY OF REQUEST: To approve the addition of a clause to the Industrial
Facilities Tax Abatement contract that will discourage companies from
appealing the valuation of any real or personal property at their facility to the
Michigan Tax Tribunal or the State Tax Commission.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the new IFT contract clause (section
1.6).
G. Approval of Department of Energy Grant. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: To approve the request to submit a grant application to
the U.S. Department of Energy for the Energy Efficiency and Conservation Block
Grant. The City of Muskegon is eligible for up to $181,600 in funding for energy
efficiency upgrades. Staff is currently working on the grant and determining the
best options, but there will be a major emphasis on energy efficient upgrades to
the McGraft Park facility, the addition of two new fuel efficient cars, and other
energy efficient upgrades that will have the most impact on eliminating
greenhouse gases and cutting utility bills.
FINANCIAL IMPACT: The energy efficient upgrades should lower the City’s utility
bills considerably.
BUDGET ACTION REQUIRED: The City will use up to $40,000 of the $250,000
budgeted for the Capital Improvements Plan for the parks, as to leverage funds.
STAFF RECOMMENDATION: To approve the submittal of the grant application.
H. Crack Sealing Machine. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to enter into a rent/purchase agreement
with National Highway Maintenance.
FINANCIAL IMPACT: $25,985.
BUDGET ACTION REQUIRED: None, the cost will be offset by savings on other
purchases.
STAFF RECOMMENDATION: Authorize staff to enter into a rent/purchase
agreement with National Highway Maintenance.
I. Special Events – Multiple Liquor License Request for Muskegon Eagles
Aerie 668 Fraternal Order of Eagles During Muskegon Summer
Celebration. LEISURE SERVICES
SUMMARY OF REQUEST: The Muskegon Fraternal Order of Eagles (Aerie 668) is
requesting an extension of their current liquor license to be able to serve non-
members during the Muskegon Summer Celebration (June 26th through July 5th).
The following temporary alcohol licenses have been approved for this time
period: Muskegon Summer Celebration and Mike’s Inn.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
COMMITTEE RECOMMENDATION: The Leisure Services Board approved this
request at their May 18th meeting.
K. Special Events – Multiple Liquor License Request for The Muskegon
Yacht Club. LEISURE SERVICES
SUMMARY OF REQUEST: The Muskegon Yacht Club is requesting an extension of
their current liquor license to be able to host the Queens Cup Regatta on June
27, 2009. The following temporary alcohol licenses have been issued for this
date: Muskegon Summer Celebration and Mike’s Inn.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
COMMITTEE RECOMMENDATION: The Leisure Services staff approved this
request.
L. Muskegon Bike Time Events. Inc. July 17th thru July 19th, 2009. LEISURE
SERVICES
SUMMARY OF REQUEST: To approve the request from Muskegon Bike Time Events
Inc., subject to the conditions outlined in the memo.
FINANCIAL IMPACT: Request that equipment rental fees be waived. In
exchange they will provide a pre-negotiated amount of beverage tent
wristbands. The exchange will be coordinated with the City Manager.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request from Bike Time, with the
conditions outlined in the memo from staff.
COMMITTEE RECOMMENDATION: The Leisure Services Board approved this
event at their May 18th meeting, subject to staff approval of individual requests.
COMMUNITY &
M. Acceptance of Fair Housing Impediment Study.
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To accept the final draft of the 2009 Fair Housing
Impediment Study produced by the Southeastern Michigan Fair Housing Center
of Ann Arbor, Michigan. The Southeastern Michigan Fair Housing Center was
contacted by the cities of Muskegon, Muskegon Heights and Norton Shores to
conduct this study, mandated by the US Department of Housing and Urban
Development.
FINANCIAL IMPACT: The City of Muskegon’s portion of the cost will be deducted
from the CNS Office CDBG Administration funds.
BUDGET ACTION REQUIRED: None required.
STAFF RECOMMENDATION: To approve the acceptance of the document and
the City’s final payment for our portion of the agreement.
COMMUNITY &
N. Final CDBG/HOME Allocations from HUD.
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: For the City Commission to make an additional
allocation decision concerning the 2009-2010 Community Development Block
Grant/HOME Partnership Program allocations for this coming fiscal year.
During the March 24, 2009, City Commission meeting, the Commission made
their final decision on the 2009-2010 CDBG/HOME Partnership allocations. Since
then, HUD has revised the total amounts for the grants. CDBG was increased
from $984,207 to $999,433 and HOME was increased from $290,049 to $322,469.
The City administration made the following recommendations:
CDBG
Increase the Veterans from $3,000 to $5,000 - $2,000 increase
Increase Facade from $5,000 to $8,500 - $3,500 increase
Increase Youth Recreation from $75,000 to $80,000 - $5,000 increase
Increase the American Red Cross from $3,500 to $5,000 - $1,500 increase
Increase Summer Interns from $6,250 to $8,000 - $1,750 increase
Increase Legal Aid Foreclosures from $8,500 to $9,976 - $1,476 increase
Total Increase is $15,226.
The CDC made two changes to the City’s CDBG recommendations:
Increase Youth Recreation from $75,000 to $79,000 - $4,000 increase
Increase Muskegon Community Health project from $2,750 to $3,750 - $1,000
increase. Their reasoning for this increase is this program deals with uninsured
diabetics and this is such a growing problem in Muskegon.
HOME
Increase HOME Admin from $22,500 to $25,742 - $3,242 increase
Increase Rental Rehab from $70,000 to $74,727 - $4,727 increase
Increase Sr. Weatherization from $125,549 to $150,000 - $24,451 increase
Total increase is $32,420.
The CDC made two changes to the City’s HOME recommendation:
Increase Sr. Weatherization from $125,549 to $145,000 – increase $19,451.
Increase Habitat for Humanity from $50,000 to $55,000 – $5,000 increase.
Their reasoning for this increase is that Habitat always needs and uses any funds
given them for their Muskegon projects.
After receiving the Commission’s final allocation decision, the Community and
Neighborhood Services office will amend the appropriate CDBG Subrecipient
Agreements and HOME CHDO Agreements.
FINANCIAL IMPACT: The decision will determine how the Community
Development Block Grant/HOME Partnership Program final funding will be
allocated for the 2009-2010 fiscal year.
BUDGET ACTION REQUIRED: The Commission actions will establish the fiscal
year’s budget.
STAFF RECOMMENDATION: The Commission previously received the
administration recommendations.
COMMITTEE RECOMMENDATION: The Commission also received the Citizen
District Council recommendations.
It was clarified that the Commission’s vote for approval was for the
administration recommendations.
O. Accept Resignations from Various Boards. CITY CLERK
SUMMARY OF REQUEST: To accept the resignation of John Aslakson from the
Planning Commission and Sue Thompson from the Historic District Committee.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To accept resignations.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to approve
the Consent Agenda as presented minus items E and J.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Wisneski
Nays: None
MOTION PASSES
2009-50 ITEMS REMOVED FROM THE CONSENT AGENDA:
E. Arena Management – JS Hockey Enterprises, Inc. CITY MANAGER
SUMMARY OF REQUEST: To authorize the Mayor and City Manager to execute
any and all documents pertaining to the transfer of the management of the L.C.
Walker Arena to JS Hockey Enterprises, Inc., including documents pertaining to
the Arena’s liquor license.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the Arena Management request regarding the documents pertaining to the
Arena’s liquor license for JS Hockey Enterprises, Inc.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo,
Wisneski, and Carter
Nays: None
MOTION PASSES
K. Special Events – Multiple Liquor License Request for Muskegon Eagles
Aerie 668 Fraternal Order of Eagles During Muskegon Bike Time.
LEISURE SERVICES
SUMMARY OF REQUEST: The Muskegon Fraternal Order of Eagles (Aerie 668) is
requesting an extension of their current liquor license to be able to serve non-
members during the Muskegon Bike Time Event, scheduled July 17th through July
19th. The following temporary alcohol licenses have been approved for this time
period: Racquets, Pop-A-Top, Muskegon Bike Time, Tipsy Toad, and Mike’s Inn.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
COMMITTEE RECOMMENDATION: The Leisure Services Board has approved this
request at their May 18th meeting.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to adopt the
special events multiple liquor license request for Muskegon Eagles Aerie 668
Fraternal Order of Eagles during Muskegon Bike Time.
ROLL VOTE: Ayes: Shepherd, Spataro, Wierengo, Wisneski, Carter, and Gawron
Nays: Warmington
MOTION PASSES
2009-51 PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – ESCO
Company. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, ESCO
Company, 1221 E. Barney Ave., has requested the issuance of an Industrial
Facilities Tax Exemption Certificate. The company plans on making investments
of $1,972,260 in personal property improvements and $170,000 in real property
improvements. They are requesting a 12-year abatement on both real and
personal property.
FINANCIAL IMPACT: The City will capture certain additional property taxes
generated by the expansion.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of 12 years for both personal and real
property.
The Public Hearing opened to hear and consider any comments from the
public. Commissioner Wisneski stated that he will be abstaining from comments
due to a pre-existing business relationship. No public comments were made.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to close the
Public Hearing and approve the resolution granting an Industrial Facilities
Exemption Certificate for a term of 12 years for both personal and real property
to ESCO Company.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Gawron, and
Shepherd
Nays: None
Abstain: Wisneski
MOTION PASSES
2009-52 UNFINISHED BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish 254 Amity Avenue. PUBLIC SAFETY
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structure located at 254
Amity Avenue, Area 11, is unsafe, substandard, a public nuisance and that it be
demolished within 30 days. It is further requested that administration be directed
to obtain bids for the demolition of the structure 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.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Spataro, second by Commissioner Shepherd to concur
with the Housing Board of Appeals notice and order to demolish 254 Amity
Avenue.
ROLL VOTE: Ayes: Warmington, Wierengo, Wisneski, Carter, Gawron, Shepherd,
and Spataro
Nays: None
MOTION PASSES
2009-53 NEW BUSINESS:
A. Allocation of Community Development Block Grant-R (American
Recovery Reinvestment Act of 2009). COMMUNITY & NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To accept the Administration’s recommendation for the
Community Development Block Grant-R program to reconstruct White Street
from Wood and Scott. White Street is one of the last streets in the City of
Muskegon that has never been paved. The funds for this project, if approved,
will be coming from the American Recovery and Reinvestment Act of 2009 (also
known as the Stimulus Package). The City of Muskegon is proposed to receive
$267,182 from the program. It is requested that residents of the City of
Muskegon be given every opportunity to be hired, if and when qualified, for this
project.
FINANCIAL IMPACT: All expected costs will come from the CDBG-R program.
BUDGET ACTION REQUIRED: To direct staff to budget all costs for the White
Street project to the CDBG-R program.
STAFF RECOMMENDATION: To approve staff recommendation and to direct the
Engineering Department to begin the designing process for the reconstruction
and to solicit for bids when the project is ready.
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the allocation of Community Development Block Grant-R American Recovery
Reinvestment Act dollars to begin the designing process for the reconstruction of
White Street.
ROLL VOTE: Ayes: Wierengo, Wisneski, Carter, Gawron, Shepherd, Spataro, and
Warmington
Nays: None
MOTIONPASSES
B. Second Quarter Budget Reforecast. CITY MANAGER
SUMMARY OF REQUEST: To adopt the Second Quarter Budget Reforecast as
presented.
Motion by Commissioner Carter, second by Commissioner Spataro to adopt the
Second Quarter Budget Reforecast as presented.
ROLL VOTE: Ayes: Wisneski, Carter, Gawron, Shepherd, Spataro, Warmington,
and Wierengo
Nays: None
MOTION PASSES
C. Muskegon Summer Celebration. LEISURE SERVICES
SUMMARY OF REQUEST: To approve the request from Muskegon Summer
Celebration. 2009’s request is consistent with 2008’s. There are no significant
changes.
FINANCIAL IMPACT: Request that rental fees be waived for any equipment
used.
BUDGET ACTION REQUIRED: None.
COMMITTEE RECOMMENDATION: The Leisure Services Board approved this
event at their March 16th meeting.
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the request from Muskegon Summer Celebration.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Wisneski
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Various comments were made by the public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:20 p.m.
Respectfully submitted,
Ann Marie Becker, MMC
City Clerk
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