View the PDF version Google Docs PDF Viewer
CITY OF MUSKEGON
CITY COMMISSION MEETING
AUGUST 9, 2005
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, August 9,
2005.
Mayor Warmington opened the meeting with a prayer from Pastor Penny
Johnson from Oak-Crest Church 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 Bill Larson, Commissioner
Chris Carter, Kevin Davis, Stephen Gawron, Clara Shepherd, and Lawrence
Spataro, City Manager Bryon Mazade, City Attorney John Schrier, and Deputy
City Clerk Linda Potter.
2005-71 HONORS AND AWARDS:
A. Declaring October as “Internet Safety Awareness Month.”
Denny Powers, Police Community Coordinator for the City of Muskegon
presented Kristin Tank, Chairperson of the Muskegon County Internet Safety
Action Committee and members with a resolution declaring October as
“Internet Safety Awareness Month.”
2005-72 INTRODUCTIONS/PRESENTATION:
A. 2005 1st Quarter Suggestion Award Winner. CIVIL SERVICE
SUMMARY OF REQUEST: The Employee Suggestion Award Committee requests
that the 2005 1st quarter award go to Cemetery & Forestry Supervisor Larry
DeCou for his proposal to enter into a contract with Wilbert Burial Vault
Company to perform the funeral service portion of burials at the city-owned
cemeteries.
FINANCIAL IMPACT: Estimated annual savings of $50,000 due elimination of one
Cemetery employee, plus the deletion of $10,000 equipment expense. As a
result of the contract with Wilbert, the current equipment on hand for funeral
services can now be sold.
BUDGET ACTION REQUIRED: None. Contract awarded to Wilbert Burial at
Financial resources at 12/14/04 City Commission meeting; allowance for $250
award of Muskegon Area Chamber of Commerce gift certificates previously
allocated in the 2005 budget.
STAFF RECOMMENDATION: Staff supports the committee recommendation and
requests approval of this award.
COMMITTEE RECOMMENDATION: The committee recommends honoring
Cemetery & Forestry Supervisor Larry DeCou with the 2005 1st quarter Employee
Suggestion Award.
Commissioner Spataro presented the award to Larry DeCou.
2005-73 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, July 26, 2005.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Approval of a Neighborhood Enterprise Zone Certificate for 1397 6th
Street. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
certification has been received from James Lawrence to rehabilitate a home in
the Nelson neighborhood at 1397 6th Street. The home is located in a
Neighborhood Enterprise Zone. The application states that the estimated cost
for rehabilitation will be $10,605. The roof will be replaced and new vinyl siding
will be installed. The applicant has met local and state requirements for the
issuance of the Neighborhood Enterprise Zone 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 6
years.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the issuance of the NEZ certificate.
C. Approval of a Neighborhood Enterprise Zone Certificate for 1173 4th
Street. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Ricky and Rebekah Mosqueda-Enders
II to rehabilitate a home in the Nelson neighborhood at 1173 4th Street. The
home is located in a Neighborhood Enterprise Zone. The application states that
the estimated cost for rehabilitation will be $56,108 for the replacement of all
windows, installation of vinyl siding, chimney repair, structural reinforcement,
replacement of missing balusters on the 2nd floor, and many updates to the
interior of the home. 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.
D. Sale of Buildable Vacant Lot at 363 Merrill Avenue. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 363
Merrill Avenue (Parcel #24-205-389-0002-00) to Carlos Martinez, 369 Merrill
Avenue, Muskegon, MI. The lot is 66 X 132 ft. and is being offered to Carlos
Martinez for $1,000 plus the fee to register the deed. Carlos Martinez will be
combining this property with his existing property, which would be considered
unbuildable should his home be destroyed over 50%. His property is 33 x 132 ft.
He would like to fence the property and add a slider with a deck. The True Cash
Value (TCV) for the property listed in the Assessor’s office is $10,000, and our
price is set at $7,500 which is 75% of that amount. The City has owned the
property since 1992 and there have been no inquiries for potential construction.
The Land Reutilization Committee is recommending approval of the sale at
lesser price due to the size of Carlos Martinez’s current property, and the True
Cash Value of this property seemed a little higher than other areas for the same
size property. The Land Reutilization Committee looked at the values of other
properties in the City, there has been a lot of new construction in the areas of
Jackson Hill and Marquette neighborhoods and the values of the same size
property or larger had a True Cash Value less than the properties in Nelson
Neighborhood. Staff also sent a letter to the other adjacent property owner
offering to sell half of the property to them, no interest was shown.
FINANCIAL IMPACT: The sale of this lot to the adjacent property owner will
generate additional tax revenue for the City and will place the property back
on the City’s tax rolls thus relieving the City of continued maintenance costs.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign the resolution and deed.
E. Approval of 2005 – 2006 Subrecipient and Community Housing
Development Organization (CHDO) Agreements. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To direct the Mayor and City Clerk to sign all of the
2005-2006 approved agreements for the City’s subrecipients and CHDO’s. The
City Commission approved the funding for each of the nonprofits last spring
during the City’s Consolidated Planning process.
1. West Michigan Veteran’s $5,000
2. HealthCare Project $5,000
3. American Red Cross $5,000
Also to have the Community Housing Development Organization agreements
signed by the following agencies.
1. Neighborhood Investment Corporation $70,000
2. Habitat for Humanity $35,000
After the Mayor and Clerk sign the contract, the CNS office will retain one copy
for our files and a copy will be supplied to the appropriate nonprofit for their
records.
FINANCIAL IMPACT: Funding will be allocated from the 2005-2006 CDBG and
HOME programs.
BUDGET ACTION REQUIRED: None. The City Commission made budgeting
allocation decision last spring.
STAFF RECOMMENDATION: To direct Mayor and Clerk to sign agreements.
F. MML - Annual Membership Dues (7/1/05 - 6/30/06). CITY MANAGER
SUMMARY OF REQUEST: To obtain permission from the City Commission, in
accordance with the Purchasing Policies and Procedures, to pay the MML
Annual Membership Dues for July 1, 2005, through June 30, 2006.
FINANCIAL IMPACT:
MML Membership Dues: $7,371
Environmental Affairs Assessment: $ 885
Legal Defense Fund: $ 737
Total: $8,993
BUDGET ACTION REQUIRED: None. Cost applied to proper budget line items.
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the Consent Agenda as read with the exception of items G and H.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
2005-74 ITEMS REMOVED FROM THE CONSENT AGENDA:
G. Construction of Improvements – Great Lakes Naval Memorial and
Museum. CITY MANAGER
SUMMARY OF REQUEST: To approve a request from the Great Lakes Naval
Memorial and Museum to construct a retaining wall and picnic pavilion on the
property leased from the City. The lease requires that any improvements be
approved by the City.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request.
Motion by Commissioner Davis, second by Vice Mayor Larson to approve the
construction improvements for the Great Lakes Naval Memorial and Museum
with the height of the retaining wall being no more than 48”.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and
Spataro
Nays: None
MOTION PASSES
H. Request to Approve Contract for Demolition of 337 W. Grand. PUBLIC
SAFETY
SUMMARY OF REQUEST: The City owned property located at 373 W. Grand has
been declared dangerous, substandard, and a public nuisance. Bids were
solicited for the demolition of said property. The only bid was received from
Press’s LLC, 8081 Holton Duck Lake Road. Holton, MI 49425 for $3,600.
FINANCIAL IMPACT: Funds for this demolition would be available through the
Community Development Block Grant.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the contract for demolition of 337 W. Grand with Press’s LLC.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, and Carter
Nays: Davis
MOTION PASSES
2005-75 NEW BUSINESS:
A. Construction Contract for the Former Mall Area Project. ENGINEERING
SUMMARY OF REQUEST: As a result of staff’s negotiations with Milbocker and
Sons please consider the following options (the original bid was $2,538,989.05;
with the snowmelt removed it is $1,764,763.95):
1. An additional $15,000 reduction with a completion date for the entire
project in 2005.
2. An additional $28,000 reduction if the project completion was extended
to 2006 with some concrete work being completed in 2005.
3. An additional $43,000 reduction if the project completion date was
extended to 2006 with all of the concrete work done in 2006.
4. Reject all bids, re-bid and award project in 2005 with start and completion
dates in 2006.
The first three options include minority participation and a commitment from the
president of the company to volunteer (4) four hours a month for at least (6) six
months to train minority contractors on biddings and other related issues. The
third option calls for a minority concrete contractor (Martin J Concrete) who
would not be available until 2006 but also has not done much concrete work
similar to that called for on this project.
The additional savings referenced above are in addition to savings resulting
from eliminating the snowmelt system. Should you choose any of the first three
options, it is respectfully requested that a contract be awarded to Milbocker
and Sons.
FINANCIAL IMPACT: Depends on the option selected.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: City staff and the DMDC (Downtown Muskegon
Development Corporation) will present a recommendation at the time of the
meeting.
Motion by Commissioner Spataro, second by Commissioner Gawron to approve
the construction contract for the former mall area project using option #3 to
Milbocker and Sons.
MOTION AND SECOND WITHDRAWN
Motion by Commissioner Carter, second by Vice Mayor Larson to approve
option #3 as a provision of the contract.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, and
Gawron
Nays: None
MOTION PASSES
B. Michigan Main Street/Community Requirements and Expectations
Agreement. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The Michigan Economic Development Corporation
(MEDC) requires that the local community (i.e., City of Muskegon) enter into an
agreement with the local Main Street Board and MEDC. The agreement outlines
the support to be provided. There is no financial obligation by the City of
Muskegon to support the program. The commitments relate to cooperation and
support. If, for some reason, the agreement is not adhered to, the only
repercussion is that the agreement would be null and void.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the agreement and authorize the City
Manager to sign.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the Michigan Main Street/Community Requirements and Expectations
Agreement.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, and
Shepherd
Nays: None
MOTION PASSES
C. Amendment to Notice of Intent Resolution. FINANCE
SUMMARY OF REQUEST: Previously the City Commission approved a notice of
intent resolution for up to $7.5 million bonds to be used for a new central fire
station and certain recreation projects. Staff is still refining the size and details of
this bond issue, however, it is clear that one of the main components originally
contemplated (second ice sheet) is not financially feasible. The purpose of this
amendment is to add language to the notice of intent to provide flexibility to
allow proceeds from this bond issue to also be used for water system
improvements, in the event this becomes necessary. It appears that final
filtration plan improvement project costs will be higher than originally
anticipated. If cash generated from the new water rates and summer usage will
be adequate to cover the additional filtration plant project costs, it will not be
necessary to borrow for this purpose. Any amounts that are borrowed for water
improvements would, of course, be repaid from the water fund.
FINANCIAL IMPACT: The immediate cost associated with this action is the cost of
re-publication in the Chronicle.
BUDGET ACTION REQUIRED: None at this time. The cost of the newspaper
publication can be covered within the current budget. Once bonds are sold,
debt service will be budgeted over the life of the bonds (20 years).
STAFF RECOMMENDATION: Approval of the resolution.
Motion by Vice Mayor Larson, second by Commissioner Gawron to approve the
amendment to the Notice of Intent Resolution.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
D. Extension of Contract to Market Seaway Industrial Park. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: In 2004 C & A Commercial Real Estate was selected as
the company to market Seaway Industrial Park properties, as well as one
property located on Getty Street. A nine-month real estate agreement was
originally signed by the Mayor with a six-month extension signed by the City
Manager in December 2004. Staff feels that Commission should review the
performance of C & A Commercial Real Estate in order to determine if there
should be another extension of the agreement for a six-month time period.
FINANCIAL IMPACT: The continued timely sale and development of these
properties will bring more jobs to Muskegon in the near future, thus additional
income tax being generated.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk to sign the said resolution.
Motion by Commissioner Gawron, second by Commissioner Spataro to approve
the resolution extending the contract to market Seaway Industrial Park for six
months.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, and
Davis
Nays: None
MOTION PASSES
E. Directional Signage. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the location of directional signage in
Muskegon and allow the signs to be placed in City right-of-way, with the
conditions outlined in the correspondence from Cindy Larsen, Chamber of
Commerce President.
FINANCIAL IMPACT: The Chamber will be providing the signs with an additional
amount of funding for future maintenance of the signs.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the location of the signs and accept the
signs and maintenance funding from the Chamber of Commerce.
Motion by Commissioner Gawron, second by Commissioner Carter to approve
the location of the signs and accept the signs and maintenance funding from
the Chamber of Commerce.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Various comments were heard
2005-76 CLOSED SESSION: To discuss collective bargaining.
Motion by Commissioner Carter, second by Vice Mayor Larson to go into Closed
Session at 6:27 p.m. to discuss collective bargaining.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and
Spataro
Nays: None
MOTION PASSES
Motion by Commissioner Shepherd, second by Commissioner Gawron to come
out of Closed Session at 6:47 p.m.
ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington, and
Carter
Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 6:48 p.m.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk
Sign up for City of Muskegon Emails