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CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 22, 2008
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, April 22,
2008.
Mayor Warmington opened the meeting with a prayer from Pastor Jeremy
Erickson from the Central Assembly of God 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, Lawrence Spataro, and Sue
Wierengo, City Manager Bryon Mazade, Assistant City Attorney William Meier,
and City Clerk Ann Marie Becker. Commissioner Clara Shepherd arrived at 5:35
p.m.
2008-35 HONORS AND AWARDS:
A. Citizen Awards. POLICE
Public Safety Director Tony Kleibecker recognized Blaine Emerson, Benjamin
Rostello, and Chaz McKinney for assisting in the apprehension of a bank robber.
2008-36 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the April 7th Commission
Worksession, and the April 8th Regular Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Dehumidification Equipment Repair/Inspection. WATER FILTRATION
SUMMARY OF REQUEST: To make necessary repairs to the two dehumidifiers
located in the pipe gallery at the Water Filtration Plant and to enter into a two-
year agreement for semi-annual service inspections.
FINANCIAL IMPACT: The cost of repairs and two-year agreement is $20,628.20.
$12,598.20 – parts; $1,550 - labor and expenses to install parts; and $6,480 - for
two-year, semi-annual, inspection agreement.
BUDGET ACTION REQUIRED: No budget action is required as this work was
planned in the 2008 budget.
STAFF RECOMMENDATION: Staff recommends having the repairs and semi-
annual maintenance for the two dehumidifiers at the Water Filtration Plant by
the equipment manufacturer – Munters Corporation.
C. 2008 Water Treatment Chemical Bids. WATER FILTRATION
SUMMARY OF REQUEST: Recommend endorsement of lowest responsible bidder
to supply sodium hypochlorite for the water filtration plant.
FINANCIAL IMPACT: Annual cost of $53,652 (based on average annual water
pumped to mains).
BUDGET ACTION REQUIRED: None at this time. These chemicals are budgeted
annually.
STAFF RECOMMENDATION: Staff recommends the Mayor and City Commission
endorse the low bid received and enter into contract with Rowell Chemical for
sodium hypochlorite.
PLANNING & ECONOMIC
D. Contract for Mowing Services.
DEVELOPMENT
SUMMARY OF REQUEST: To approve a two-year contract with the Sheldon Park
Neighborhood Improvement Association for the maintenance of two City-
owned lots in the Sheldon Park neighborhood.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize execution of the contract. The
responsibility for cleaning and mowing these lots would belong to the
Association rather than the City and would extend through 2009. The City’s
estimated cost of $2,000 to maintain the lots over this period would then be
donated to the Association. The neighborhood has maintained the lots for
several years under similar agreements and has done a great job.
E. Amendment to the Zoning Ordinance – B-4, General Business Districts,
Special Land Uses Permitted. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to amend Section 1301 (Special Land Uses
Permitted) of Article XXIII (B-4, General Business Districts) to allow an additional
special land use.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends amendment of the Zoning
Ordinance to allow an additional special land use in the B-4, General Business
zoning district.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their April 10th meeting. The vote was unanimous with
B. Mazade absent.
F. Set Public Hearing for Amendments to Brownfield Plan – Betten Auto
Dealerships Project. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the resolution setting a public hearing for
amendments to the City of Muskegon Brownfield Plan, and notifying taxing
jurisdictions, Michigan Department of Environmental Quality, and Michigan
Economic Growth Authority of the Brownfield Plan Amendments, including the
opportunity to express their views and recommendations regarding the
proposed amendments at the public hearing. The amendments are for the
inclusion of the Betten Auto Dealerships project in the Brownfield Plan. The
public hearing has been changed from April 22, 2008 to May 13, 2008.
FINANCIAL IMPACT: Brownfield Tax Increment Financing would be used to
reimburse the developer and the City for Act 381 “eligible expenses” incurred in
association with development of the Betten properties, starting in 2008. The
developers/owners estimate that full development of the Betten properties will
involve over $13 million in private investment (in addition to property
acquisition), resulting in a substantial increase in the city income, and local and
school property taxes generated by the property.
“Eligible expenses” of over $3 million would be reimbursed. The estimated tax
capture schedule is included as Attachment S-3 in the proposed Brownfield Plan
Amendment. The City is also authorized by law to capture up to $75,000/year to
pay for “reasonable and actual administrative and operating costs” of the
Brownfield Redevelopment Authority. As such, $10,000/year of the local tax
increment will be captured to reimburse the Brownfield Authority for its
administrative costs, for the duration of the Brownfield Plan.
After all eligible costs incurred by the parties are reimbursed, the BRA is
authorized to continue to capture local taxes for five more years for deposit into
a Local Site Remediation Revolving Fund. Current tax capture estimates
indicate that approximately $998,500 could be captured from the taxes on the
Betten properties for deposit into this local fund.
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority met
on April 1, 2008, and approved the Brownfield Plan Amendment adding the
Betten Auto Dealership properties to the Brownfield Plan, and request the
Muskegon City Commission set a public hearing on the Plan Amendments, and
request notification of the taxing jurisdictions, MDEQ, and MEGA of the
proposed amendment and its financial impact on each jurisdiction.
H. Liquor License Transfer Request for Watermark Banquet and
Conference Center, 920 Washington. CITY CLERK
SUMMARY OF REQUEST: The Liquor Control Commission is seeking local
recommendation on a request from Watermark Banquet and Conference
Center, LLC, to transfer ownership of the 2007 Class C licensed business located
in escrow at 800 S. Mill Iron Rd., Muskegon Township, from Niblick Properties, LLC,
and to transfer location (governmental unit) to 920 Washington. They are also
requesting a new Outdoor Service, Dance/Entertainment, Official (food) permits
and three Additional Bars.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: All departments are recommending approval.
I. Muskegon Summer Celebration. LEISURE SERVICES
SUMMARY OF REQUEST: 2008’s request is consistent with 2007’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 17th meeting.
J. City – MDOT Agreement for Intersection Improvements on US-31 BR at
Sherman and Hackley. ENGINEERING
SUMMARY OF REQUEST: To approve the contract with MDOT for the intersection
improvements on Seaway Drive (US-31BR) at Sherman and Hackley and to
approve the resolution authorizing the Mayor and City Clerk to sign the
contract. The proposed work consists of creating a right turn lane on north
bound Seaway at Sherman and Hackley.
FINANCIAL IMPACT: While this is an MDOT project, the City’s participation is
required under ACT-51 since the project falls within the City limits. The City’s
share is estimated at $5,550, but not more than 11.25% of eligible cost. The total
cost of the project is estimated at $246,400.
BUDGET ACTION REQUIRED: None at this time. The City’s share of the cost will
come out of the 2008 major street fund, as was budgeted.
STAFF RECOMMENDATION: That the agreement and resolution be approved.
K. Consideration of Bids for Isabella, Ambrosia to Williams (H-1633) and
Ada, Wood to Chestnut (W-695). ENGINEERING
SUMMARY OF REQUEST: Award the Ada and Isabella construction contract to
Schippers Excavating out of West Olive since they were the lowest responsible
bidder with a total bid price of $406,048.00. The contract consists of both Ada
water main replacement (W-695) and Isabella (H-1633) projects which were
combined into one contract.
FINANCIAL IMPACT: The construction cost of $406,048 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to Schippers Excavating.
L. Micro-Surfacing of Lakeshore Drive between Laketon and Michigan.
ENGINEERING
SUMMARY OF REQUEST: Authorize staff to enter into a maintenance agreement
with Terry Asphalt to micro surface Lakeshore Drive from Laketon to Michigan.
Terry Asphalt has a contract with Norton Shores to perform similar projects and
they agreed to extend the unit prices to the City of Muskegon.
FINANCIAL IMPACT: The estimated cost of $47,000.
BUDGET ACTION REQUIRED: None at this time. This project, if approved, will be
added to the budget’s first quarter forecast.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with Terry
Asphalt to perform the tasks outlined in the proposal.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
consent agenda as presented minus item G.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Wisneski
Nays: None
MOTION PASSES
2008-37 ITEM REMOVED FROM THE CONSENT AGENDA:
G. Approval of Contract with Nova Development Group to Partner with
CNS Office. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the Community and Neighborhood Services
office to develop a partnership with Nova Development Group of Detroit, MI, to
do approximately 20 owner-occupied energy conservation projects through the
City’s Emergency Repair and Siding programs.
The Nova Development Group has a grant through the Michigan Public Service
Commission and the Michigan State Housing Authority to partner with local
communities to assist low-income residents to make their homes energy efficient.
According to the guidelines of the grant, the local community is responsible for
a 50% match with Nova Development Group. The CNS office would like to
direct $50,000 to $75,000 of combined CDBG Emergency and Siding funding to
assist with the energy conservation on 20 2008-2009 fiscal year projects. Nova
Development Group must have all their State funding spent by August 15, 2008.
FINANCIAL IMPACT: The partnership should assist the CNS office with spending
less scarce funding, while simultaneously helping the clients make their homes
more energy efficient.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the Community and Neighborhood
Services office request.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the contract with Nova Development Group to partner with CNS office.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro,, Warmington, Wierengo,
Wisneski, and Carter
Nays: None
MOTION PASSES
2008-38 PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate for Alloy
Resources Corporation. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Alloy
Resources Corporation, 2281 Port City Blvd., has requested the issuance of an
Industrial Facilities Tax Exemption Certificate. The improvements were
completed in October of 2007 and IFT guidelines state that the company has up
to six months after project completion to file the application. The total capital
investment was $1,025,000 in personal property. The investment has also
created six new jobs. This qualifies them for a tax abatement of seven years for
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 seven years for personal property.
The public hearing opened to hear and consider any comments from the
public. Comments were heard from John Essex, 5823 Lake Harbor, President &
CEO of Port City Group.
Motion by Commissioner Carter, second by Commissioner Shepherd to close the
public hearing and approve the request for an Industrial Facilities Exemption
Certificate for Alloy Resources Corporation.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter,
and Gawron
Nays: None
MOTION PASSES
2008-39 NEW BUSINESS:
A. Land Lease – McLaughlin Neighborhood Association. CITY MANAGER
SUMMARY OF REQUEST: To approve our agreement to lease the lot at 1264
Terrace Street to the McLaughlin Neighborhood Association. They intend to use
the property for a park and garden.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the agreement and authorize the Mayor
and Clerk to sign it.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the land lease with McLaughlin Neighborhood Association.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, Gawron,
and Shepherd
Nays: None
MOTION PASSES
B. Special Events Multiple Liquor License Request – Taste of Muskegon.
LEISURE SERVICES
SUMMARY OF REQUEST: The following organizations are requesting a temporary
liquor license or extension of their liquor license to be able to offer outside
entertainment or serve spirits during the period of June 19th thru June 22nd:
• Taste of Muskegon, 900 Third St. – Requesting a Beer and Wine
School, (Beer Tent) to be setup on Western Avenue between Third
and Fourth Street from June 21st thru June 22nd.
• Downtown Pinnacle Properties (Racquets), 446 W. Western Ave. –
Requesting an extension of their liquor license to set up a beverage
entertainment area in the lot adjacent to the building at Western
Avenue and Fourth Street from June 19th thru June 22nd during the
Taste of Muskegon event.
• Rock Stock 08, 5495 S. White River Trail – Requesting Hackley Park for
a one-day music festival on June 21, 2008.
• West Michigan Truck Show, 1204 W. Western Ave. – Requesting to
set up beverage entertainment area on the Morris Street lot (former
Pearlman lot) from June 18th to June 21st.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
COMMITTEE RECOMMENDATION: All the above listed events were approved by
the Leisure Services Board at their February 18th and March 17th meetings.
Motion by Commissioner Spataro, second by Commissioner Wisneski to approve
the special event liquor license request for Taste of Muskegon, 900 Third Street,
for June 21st thru June 22nd.
ROLL VOTE: Ayes: Warmington, Wierengo, Wisneski, Carter, Gawron, Shepherd,
and Spataro
Nays: None
MOTION PASSES
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the special event liquor license request for Downtown Pinnacle Properties, 446
W. Western Avenue.
ROLL VOTE: Ayes: Wierengo, Wisneski, Carter, Gawron, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the special event liquor license request for Rock Stock 08, 5495 S. White River
Trail.
ROLL VOTE: Ayes: Wisneski, Carter, Gawron, Shepherd, Spataro, Warmington,
and Wierengo
Nays: None
MOTION PASSES
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the special event liquor license request for West Michigan Truck Show, 1204 W.
Western Avenue.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Wisneski
Nays: None
MOTION PASSES
C. Special Event Liquor License Request for Mike’s Inn, June 27th thru July
5th, 2008 – Muskegon Summer Celebration. LEISURE SERVICES
SUMMARY OF REQUEST: Mike’s Inn (555 W. Western Ave.) is requesting an
extension of their liquor license to be able to host an outside entertainment area
in their lot. Summer Celebration holds the first liquor license.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
COMMITTEE RECOMMENDATION: The Leisure Services Board approved this
event at their February 18th meeting.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the special event liquor license request for Mike’s Inn for June 27th thru July 5th.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo,
Wisneski, and Carter
Nays: None
MOTION PASSES
D. Multiple Special Event Liquor License Request – Muskegon Bike Time.
LEISURE SERVICES
SUMMARY OF REQUEST: The following organizations are requesting an extension
of their liquor license to be able to offer outside entertainment during the
“Muskegon Bike Time” festival (July 18th thru July 20th):
• Mike’s Inn, 555 W. Western Ave. – Requesting to fence off
parking lot to set up beverage entertainment area.
• Racquets Downtown Grill, 446 W. Western Ave. – Requesting to
set up beverage entertainment area in the lot located next to
Racquets on the corner of Fourth St. and Western Ave.
• Tipsy Toad Tavern, 609 W. Western Ave. – Requesting to set up
beverage entertainment area in the parking lot located
between Tipsy Toad and Radiology P.C.
• Pop-A-Top, 2185 Henry St. – Requesting to set up beverage
entertainment area in their parking lot.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
COMMITTEE RECOMMENDATION: All of the above listed events were approved
by the Leisure Services Board at their February 18th and March 17th meetings.
Motion by Commissioner Shepherd, second by Commissioner Carter to approve
the multiple special event liquor license request for Mike’s Inn, Racquets
Downtown Grill, Tipsy Toad Tavern, and Pop-A-Top during July 18th thru July 20th.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter,
and Gawron
Nays: None
MOTION PASSES
E. 2008-2009 Healthcare Renewal. FINANCE
SUMMARY OF REQUEST: It is time to renew the City’s healthcare coverage for
the 2008-09 plan year. Healthcare costs continue to rise. Renewal rates for the
City’s current healthcare program initially came in at $859.90/employee/month,
9% higher than the current rate ($787.87). However, Priority Health has agreed
to a more palatable 6% increase ($835.19), provided the city defer competitive
bidding for one year. (A new state law requires bidding every three years.) The
6% increase translates into an estimated annual cost increase of $133,869. This is
within the city’s budget expectation.
FINANCIAL IMPACT: Healthcare costs will increase 6% ($133,869) – a significant,
but manageable level. No changes to employee benefits are proposed.
BUDGET ACTION REQUIRED: None. Under the renewal proposal, healthcare
costs will be within budget.
STAFF RECOMMENDATION: Approval of the 2008-09 healthcare renewal with
Priority Health. Staff is also exploring employer-funded HRA (health
reimbursement account) options through Priority Health. These options do not
impact the employee, but involve the city self-insuring a deductible amount in
exchange for a lower insurance premium. At this time, the HRA concept does
not appear to be a good option for us; however, we are still analyzing data and
would ask you to authorize staff to select the HRA option if clearly shown to be in
the city’s financial interest.
Motion by Commissioner Wisneski, second by Commissioner Spataro to approve
the 2008-09 healthcare renewal.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, Gawron,
and Shepherd
Nays: None
MOTION PASSES
F. Lakeshore Pathway Construction – McCracken to Cottage Grove. CITY
MANAGER
SUMMARY OF REQUEST: To approve the construction of an on-street and off-
street pathway along Lakeshore Drive between McCracken and Cottage
Grove.
FINANCIAL IMPACT: $100,000.
BUDGET ACTION REQUIRED: If approved, the project will be included in the
Capital Improvement Plan in the 2008 first quarter budget adjustment.
STAFF RECOMMENDATION: To approve construction of the pathway.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to approve
the construction of an on-street and off-street pathway along Lakeshore Drive
between McCracken and Cottage Grove.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Gawron, Shepherd, and
Spataro
Nays: Wisneski
MOTION PASSES
G. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish the following: PUBLIC SAFETY
1970 Crowley – Area 14
709 E. Apple (Garage) – Area 11
1918 Valley (Home and Garage)
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: General Funds for 1970 Crowley and 1918 Valley; and
CDBG Funds for 709 E. Apple (garage).
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Spataro, second by Commissioner Wisneski to concur
with the Housing Board of Appeals notice and order to demolish 1970 Crowley
and 1918 Valley (home and garage).
ROLL VOTE: Ayes: Wierengo, Wisneski, Carter, Gawron, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
Motion by Commissioner Spataro, second by Vice Mayor Gawron to concur with
the Housing Board of Appeals notice and order to demolish 709 E. Apple
Avenue, garage only.
MOTION AND SECOND AMENDED:
Motion amended by Commissioner Spataro, second by Vice Mayor Gawron to
concur with the Housing Board of Appeals notice and order to demolish 709 E.
Apple Avenue, garage only, delaying action until August 10, 2008, with all
permits pulled and City inspection passes.
ROLL VOTE TO AMEND MOTION:
Ayes: Wisneski, Carter, Gawron, Spataro, Warmington, and
Wierengo
Nays: Shepherd
MOTION PASSES
ROLL VOTE ON AMENDED MOTION:
Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Wisneski
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: City Commission commented on various items.
PUBLIC PARTICIPATION: Comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 7:18 p.m.
Respectfully submitted,
Ann Marie Becker, MMC
City Clerk
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