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CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 12, 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, July 12, 2005.
Mayor Warmington opened the meeting with a prayer from Pastor Sarah
Johnson of the Word of Truth Outreach 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
Lawrence Spataro, Chris Carter, Kevin Davis, Stephen Gawron, and Clara
Shepherd, City Manager Bryon Mazade, City Attorney John Schrier, and City
Clerk Gail Kundinger.
2005-61 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, June 28, 2005.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
C. Sale of Buildable Vacant Lot at 551 South Getty. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 551 S.
Getty Street to Angela Hawkins, 531 S. Getty Street, Muskegon, MI. The lot is 80 x
111 ft. and is being offered to Angela Hawkins for $3,000. Angela Hawkins will be
combining this property with her existing property and building an addition to
her home. Her home is a two story home and the addition will be in line with the
existing structure. She will be adding just over 1,000 square feet in total to the
home. The True Cash Value for the property listed in the Assessor’s Office is
$4,000, and our price is set at $3,000 which is 75% of that amount.
FINANCIAL IMPACT: The sale of this lot to the adjacent property owner for the
construction of an addition to her existing home 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 said resolution and deed.
COMMITTEE RECOMMENDATION: The Land Reutilization Committee
recommends approval of the sale with the condition that the property be
combined with the owner’s original parcel and they have 18 months to build the
addition.
D. Policy Change to “Policy for Sale of City owned Residential Property.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the change to the “Policy for Sale of City-
Owned Residential Property” to include that Closing Costs will be split between
the buyer and the seller.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: none
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution.
COMMITTEE RECOMMENDATION: The Land Reutilization Committee
recommended approval of the policy change at their regular meeting of June
28, 2005.
Motion by Commissioner Carter, second by Commissioner Gawron to approve
the Consent Agenda as read with the exception of item B.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and
Spataro
Nays: None
MOTION PASSES
2005-62 ITEM REMOVED FROM THE CONSENT AGENDA:
B. Used Computer Equipment Sale. H.E.A.L.T.H. Committee
SUMMARY OF REQUEST: The City H.E.A.L.T.H. and Fitness Committee seeks City
Commissioners’ approval to sell obsolete computer equipment that the
Information Technology Department has in storage in the City Hall basement.
This old equipment is set to be discarded or destroyed by the Information
Technology Department. The proceeds from this fundraiser will be used to
purchase exercise equipment for the fitness area in the City Hall basement this
fall.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request for sale of obsolete
computer equipment and the proceeds from the sale go to the H.E.A.L.T.H.
Exercise Equipment Project for City Hall.
Motion by Commissioner Davis, second by Commissioner Carter to approve the
used computer equipment sale.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
2005-63 UNFINISHED BUSINESS:
A. Greek Festival Liquor License. (Mayor & Commission)
Motion by Commissioner Spataro, second by Commissioner Carter to approve
The Big Fat Greek Festival’s request to sell ouzo using one ounce serving
containers, with the Fraternal Order of Police being in charge of serving at a
separate location from the beer and wine.
ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington, and
Carter
Nays: None
MOTION PASSES
2005-64 NEW BUSINESS:
A. Accounting Services Contract. FINANCE
SUMMARY OF REQUEST: In 1997, in conjunction with an early retirement initiative,
the Finance Department replaced a full-time finance clerk position with a
contractual accounting services arrangement. This has proven to be a very
successful and efficient arrangement: the number of billable hours has steadily
declined each year while the quality and volume of work has increased. In
2004, the total cost of the contract was $11,279 for 262 hours of work. By way of
comparison, the 2005 budgeted cost (wages and benefits) for a position
comparable to the one replaced in 1997 is $60,000.
The contract for accounting services has been with Hoffman, Steensma &
Plamondon (HSP) since the start. The HSP individual assigned to this account
now has several years of valuable experience with city financial procedures and
maintains an excellent working relationship with finance staff. HSP has submitted
a proposal for a three-year renewal of the contract which staff believes is fair
and reasonable.
FINANCIAL IMPACT:
Professional Staff % Increase Manager & Partner % Increase
Current $42.00 $50.00
2006 $43.00 2.4% $51.00 2.0%
2007 $44.00 2.3% $52.00 2.0%
2008 $45.00 2.3% $53.00 1.9%
BUDGET ACTION REQUIRED: The 2005 budget includes adequate funding for
these services. Future budgets will incorporate the proposed rates.
STAFF RECOMMENDATION: Approval of a three-year contract extension with
Hoffman, Steensma & Plamondon, PLC for accounting services.
Motion by Vice Mayor Larson, second by Commissioner Gawron to approve a
three-year contract extension with Hoffman, Steensma & Plamondon, PLC for
accounting services.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, and
Davis
Nays: None
MOTION PASSES
B. Request to Purchase Two Fire Engines. PUBLIC SAFETY
SUMMARY OF REQUEST: Fire Department staff is requesting approval by the
Commission to allow for the procurement of two fire engines. The first engine
would be a standard front-line engine, which would be purchased. The second
would be an engine to include a 75’ aerial ladder with a water delivery system
which would be leased over a period of ten years. These two engines would
replace two engines that are currently in service. The low bid, which meets all
stated specifications, was submitted by Crimson Fire, 907 7th Ave., Brandon,
South Dakota. Crimson is a subsidiary of Spartan Motors of Charlotte, Michigan.
The bid price submitted by Crimson is $1,031,390.
FINANCIAL IMPACT: Funds for this purchase and lease would originate in the
City’s Public Improvement Fund. The current balance would provide for the
purchase of the first engine. Part of the future funds would provide the lease
payments for the engine/aerial.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the purchase and lease agreement.
Motion by Commissioner Spataro, second by Commissioner Davis to approve
the request to purchase two fire engines.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, and
Gawron
Nays: None
MOTION PASSES
C. Fire Truck Lease Purchase. FINANCE
SUMMARY OF REQUEST: One of the commitments made in the 1993 income tax
campaign was to set aside $150,000 each year to replace major fire equipment
on a “pay-as-you-go” basis. This commitment has been met each year. As of
12/31/04, there was $470,086 held in this account with an additional $150,000 to
be contributed in 2005. Public Safety staff has determined there is serious need
to replace two trucks at this time at a total projected cost of $1,031,390. Staff is
proposing to pay cash for the less expensive truck ($425,566) and to finance the
larger truck ($605,824) via an Act 99 installment purchase contract. Staff is
currently soliciting installment purchase quotes from various banks and other
lending sources.
FINANCIAL IMPACT: Quotes are being taken for two repayment terms: 7-year
and 10-year. Depending on which term is selected (and on quoted interest
rates), annual installments are estimated to be $70,000 - $100,000.
BUDGET ACTION REQUIRED: None. Each year’s budget includes $150,000
allocation for fire equipment replacement. Funding for the installment purchase
contract will come from this allocation.
STAFF RECOMMENDATION: To be determined.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the fire truck lease purchase through National City Bank.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
D. Resolution to Acquire 280 Iona. COMMUNITY AND NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the resolution that instructs the Community
and Neighborhood Services office to obtain 280 Iona from the State of
Michigan, which is currently a vacant abandoned home. The structure is
located next door to 284 Iona, a recently completed infill home under the
“Operation: At Long Last” project. The department’s objective is to obtain 280
Iona for the minimum price of $300, rehabilitate it and sell the property to a
qualified family. The obtaining of this property and the total rehabilitation is one
additional piece to the City’s continuous neighborhood revitalization efforts.
FINANCIAL IMPACT: CNS Office will supply $300 from the HOME program
income fund.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and instruct the CNS
Office to send the document to the State of Michigan.
COMMITTEE RECOMMENDATION: The Commission approved this transaction
during the December 7, 2004, meeting.
Motion by Commissioner Shepherd, second by Commissioner Spataro to
approve the resolution to acquire 280 Iona from the State of Michigan.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, and
Shepherd
Nays: None
MOTION PASSES
E. City - MDNR Memorandum of Understanding for Bike Trail along
Laketon. ENGINEERING
SUMMARY OF REQUEST: Approve the memorandum of understanding between
the City and MDNR for the construction of a 10’ asphalt trail starting at Getty
and moving east to the extent the available funds of $50,000 permits. The
project will use City man power for the work while the State will pay for the
material and the rental of any other equipment necessary to do the work. It is
expected that the $50,000 from MDNR will be enough to construct a bike path
between Getty & Roberts.
FINANCIAL IMPACT: The salaries of those individuals that will be involved in the
work which is estimated at about $10,000 and the use of City owned equipment.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the Memorandum of Understanding.
Motion by Commissioner Spataro, second by Commissioner Gawron to approve
the Michigan Department of Natural Resources Memorandum of Understanding
for the Bike Trail along Laketon Avenue.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and
Spataro
Nays: None
MOTION PASSES
F. Fireworks Display Request for the Greek Festival. CITY CLERK
SUMMARY OF REQUEST: At the June 28th Commission Meeting you approved the
request from Summit Pyrotechnics for a fireworks display permit for the Big Fat
Greek Festival on July 30th. They are now requesting to set the fireworks off from
land instead of the Barge at Heritage Landing. Fire Marshall Metcalf will inspect
the fireworks on the day of the event.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval contingent on site plan inspection and
inspection of the fireworks.
Motion by Commissioner Carter, second by Commissioner Davis to approve the
fireworks display request.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 6:47 p.m.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk
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