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CITY OF MUSKEGON
CITY COMMISSION MEETING
NOVEMBER 22, 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, November
22, 2005.
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 Bill Larson, Commissioner
Chris Carter, Kevin Davis, Stephen Gawron, Clara Shepherd, and Lawrence
Spataro, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk
Gail Kundinger.
2005-106 HONORS AND AWARDS: Vice Mayor Bill Larson presented a plaque to
Cindy Kody in honor of the late Bill Kody who saved the lives of the duck hunters
on Muskegon River from drowning.
2005-107 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the November 7th Community
Relations Committee and Commission Worksession, and the November 8th
Regular Commission Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Sale of an Unbuildable Vacant Lot at the Rear of 2371 Crozier.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant unbuildable lot at the
rear of 2371 Crozier to Union Federal Bank of Indianapolis, 7500 W. Jefferson
Blvd., Fort Wayne, IN. The property is being offered to Union Federal Bank of
Indianapolis, to help clear the property title, for $100. According to the County
Treasurer, the property taxes for the lot went unpaid from 1994 – 1999. The
property went up for tax sale and the City obtained the lot in 2000 from the
State. A local title office issued a warranty deed for the property and included
the City owned portion in the deed in 2001. After that, the properties were
combined, even though there were two different property owners. This will
remove the City’s name from the property and clear the title.
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 and deed in order to clear this up.
C. Nine Month Extension to Complete Construction of Home. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve a nine-month extension to allow Bill Ingalls
time to complete the construction of a single-family home on Harrison Court.
Mr. Ingalls purchased the property to construct four single-family homes on it
and has completed three of them. The City has customarily granted extensions
to parties who have shown that they are dedicated to completing construction
and contributing to the beautification of the City’s residential areas. Mr. Ingalls
has worked with staff to submit an alternative plan to complete construction of
a home on the property and feels that the nine month extension will allow
enough time for this plan to be completed. Mr. Ingalls is working with Tom Blake
of Nexes Realty to market the property.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the time extension,
as well as authorization for both the Mayor and the Clerk to sign the resolution.
D. Approval of a Neighborhood Enterprise Zone Certificate for 476 W.
Muskegon Avenue. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Jessica Elsey to rehabilitate a home in
the Nelson neighborhood at 476 W. Muskegon Ave. The home is located in a
Neighborhood Enterprise Zone. The application states that the estimated cost
for rehabilitation will be $5,000. The replacements of all windows, vent and
repair roof, and remodel the front porch. The applicant has met local and state
requirements for 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 six
years.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve issuance of the NEZ certificate.
E. Amendment to the Purchase Agreement for 1259 Marquette.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the amendment of the purchase
agreement for the sale of a vacant buildable lot at 1259 Marquette St. (Parcel
#24-611-000-0482-00) to Garry & Earnestine Gaines, 881 Getty St., Muskegon,
and MI. The lot is being offered to Garry & Earnestine Gaines for $9,000. Garry &
Earnestine Gaines will be constructing a two-story, 3 bedroom, single-family
home with an attached garage, which will comply with the City’s Policy for Sale
of City-Owned Residential Property. The True Cash Value (TCV) for the property
listed in the Assessor’s office is $12,000, and our price is set at $9,000 which is 75%
of that amount. The closing of the property must take place before or on
January 13, 2006 and the seller will not be held liable for any real estate
commissions claimed by a realtor in connection with this transaction. The
amendment is needed because the buyers are no longer working with a realtor.
They are also working with a new builder for the construction and financing of
the home.
FINANCIAL IMPACT: The sale of this lot for construction of one new 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.
F. FIRST READING: Rezoning Request for Property Located at 2170 Beidler
and 714 W. Hackley Avenue. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone properties located at 2170 Beidler St.
and 714 W. Hackley Ave., from R-1, One Family Residential to B-2 Convenience
and Comparison Business.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the request.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their 11/10 meeting. The vote was unanimous with J.
Aslakson and T. Michalski absent.
G. FIRST READING: Rezoning Request for Properties Located at 599, 545,
925, and 635 Ottawa Street; and 535, 575, and 630 E. Western Avenue.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone the properties located at 599, 545,
625, Ottawa and 535, 575 and 630 E. Western Ave., from B-4, General Business to
WM, Waterfront Marine.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the request.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their 11/10 meeting. The vote was unanimous with J.
Aslakson and T. Michalski absent.
H. FIRST READING: Rezoning Request for Property Located at 896 Home
Street. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone the properties located at 896 Home
St. from R-1 One Family Residential to RM-3 High Density Multiple-family
Residential.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends denial of the request due to lack
of compliance with the future land use map, Master Land Use Plan and zoning
district intent.
COMMITTEE RECOMMENDATION: The Planning Commission voted to
recommend denial of the request at their 11/10/05 meeting. The vote was
unanimous with J. Aslakson and T. Michalski absent.
I. SECOND READING: Defined Contribution Retirement Plan for New Hires
(Fire, Non-Union). FINANCE
SUMMARY OF REQUEST: The City Commission has previously approved a
contract with the firefighters union that includes provision for new hires to be
members of a defined contribution retirement program in lieu of membership in
the defined benefit police and fire retirement system. The new fire DC plan calls
for a fixed city contribution of 10% and an employee contribution of 6% of
wages. Present employees may also join the DC plan on an elective basis
during a window period.
We are also recommending at this time implementation of a similar plan for new
non-union employees. The outline of the program is the same except for lower
contribution rates (6% city; 3% employee) reflecting the fact that these
employees are covered by social security (fire employees are not).
Approval of the resolutions and ordinance amendments is the final step in
putting in place the mechanics of these new programs.
FINANCIAL IMPACT: Moving to a defined contribution plan will help stabilize and
better define the city’s annual pension costs. We are negotiating similar
arrangements for other employee groups.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Carter, second by Commissioner Davis to approve the
Consent Agenda as read.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter,
and Davis
Nays: None
MOTION PASSES
2005-108 PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – ADAC
Plastics. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974 as amended, ADAC
Plastics, 1801 Keating, has requested the issuance of an Industrial Facilities
Exemption Certificate for the property located at 1801 Keating, Muskegon. The
total capital investment is approximately $666,454.00 in personal property and
$33,409.00 in real property. This request qualifies ADAC Plastics for a term of
twelve (12) years for real property and nine (9) 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 twelve (12) years for real property
and nine (9) years for personal property.
The Public Hearing opened at 5:45 p.m. to hear and consider any comments
from the public. Comments were heard from Jackie Darnell, Muskegon County
NAACP President, 541 E. Hackley.
Motion by Commissioner Spataro, second by Commissioner Gawron to close the
Public Hearing at 5:50 p.m. and approve the request for an Industrial Facilities
Exemption Certificate for ADAC Plastic.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
B. Spreading of the Special Assessment Roll for Fifth Street, Campus to
Merrill. ENGINEERING
SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special
assessment for Fifth St., from Campus Ave. to Merrill Ave., and to adopt the
resolution confirming the special assessment roll.
FINANCIAL IMPACT: A total of $49,344 would be spread against the twenty-
seven (27) parcels abutting the project.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the special assessment roll and adopt
the resolution.
The Public Hearing opened at 5:51 p.m. to hear and consider any comments
from the public. No comments were heard.
Motion by Commissioner Gawron, second by Commissioner Shepherd to close
the Public Hearing at 5:54 p.m. and approve the spreading of the special
assessment roll for Fifth Street, Campus to Merrill.
ROLL CALL: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and
Spataro
Nays: None
MOTION PASSES
C. Spreading of the Special Assessment Roll for Ireland Avenue, Franklin to
Davis. ENGINEERING
SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special
assessment for Ireland Ave., Franklin to Davis St. and to adopt the resolution
confirming the special assessment roll.
FINANCIAL IMPACT: A total of $25,995.57 would be spread against the twenty-
nine (29) parcels abutting the project.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the special assessment roll and adopt
the resolution.
The Public Hearing opened at 5:55 p.m. to hear and consider any comments
from the public. No comments were heard.
Motion by Commissioner Davis, second by Commissioner Carter to close the
Public Hearing at 5:57 p.m. and approve the spreading of the special
assessment roll for Ireland Avenue, Franklin to Davis.
ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington, and
Carter
Nays: None
MOTION PASSES
D. Spreading of the Special Assessment Roll for Franklin Street, Laketon to
Ireland. ENGINEERING
SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special
assessment for Franklin St., Laketon to Ireland and to adopt the resolution
confirming the special assessment roll.
FINANCIAL IMPACT: A total of $19,645.76 would be spread against the eleven
(11) parcels abutting the project.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the special assessment roll and adopt
the resolution.
The Public Hearing opened at 6:00 p.m. to hear and consider any comments
from the public. No comments were heard.
Motion by Commissioner Spataro, second by Commissioner Carter to close the
Public Hearing at 6:02 p.m. and approve the spreading of the special
assessment roll for Franklin Street, Laketon to Ireland.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, and
Gawron
Nays: None
MOTION PASSES
2005-109 UNFINISHED BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish 765 Washington. 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 765
Washington – Area 12 is unsafe, substandard, a public nuisance and that it be
demolished within thirty ((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: General fund.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Spataro, second by Commissioner Gawron to concur
with the Housing Board of Appeals notice and order to demolish the structure at
765 Washington.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, and
Shepherd
Nays: None
MOTION PASSES
2005-110 NEW BUSINESS:
A. Resolution Supporting Regional Collaboration. CITY MANAGER
SUMMARY OF REQUEST: To approve a resolution that supports regional
collaboration efforts. This resolution is necessary for One Muskegon to pursue
state funding through the Centers for Regional Excellence for our local efforts.
FINANCIAL IMPACT: Collaborative efforts may save the City money in the future.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution.
Motion by Commissioner Gawron, second by Commissioner Shepherd to
approve the resolution supporting regional collaboration.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro,
Warmington
Nays: None
MOTION PASSES
B. Move of Non-Union Employees to Municipal Employees’ Retirement
System of Michigan. FINANCE
SUMMARY OF REQUEST: MERS (Municipal Employees’ Retirement System of
Michigan) is a statewide intergovernmental cooperative established for the
purpose of providing cost-effective pension plan administration. The City’s
pension boards have explored moving to MERS on two separate occasions in
the last few years, but could not reach consensus. At this time staff is proposing,
that effective January 1, 2006, pension administration and management of
pension-plan assets for current non-union employees (51 employees) be moved
to MERS.
FINANCIAL IMPACT: Staff believes that MERS offers the most cost-effective
alternative for pension administration. We expect to achieve administrative
savings by moving the non-union employees to MERS and the potential is for
greater savings should other employee groups opt to switch to MERS. The
computed first year (2006) contribution rate for the MERS program is 5.71%,
which compares favorably to the budgeted contribution rate of 7.86%
BUDGET ACTION REQUIRED: None. As noted, the computed contribution rate
for MERS is within the budgeted cost for pension expense for the affected
employees.
STAFF RECOMMENDATION: Approval.
Motion by Vice Mayor Larson, second by Commissioner Spataro to approve the
move of non-union employees to Municipal Employees’ Retirement System of
Michigan.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, and
Davis
Nays: None
MOTION PASSES
C. Amendment to Arena Operations Management Contract. FINANCE
SUMMARY OF REQUEST: Approval of an amendment to the arena management
contract. The current arena operations contract with AMG did not anticipate a
second major building tenant. The introduction of professional basketball last
year required and amendment to reimburse the arena manager for the
additional costs associated with basketball (set-up, security, etc.). This
proposed amendment for the 2005-06 season is similar to last year’s agreement
with the exception that the maximum per game payment is reduced from
$4,000 to $2,900, reflecting the fact that the basketball team has assumed
responsibility for floor set-up/take-down. The overall arena management
agreement is set to expire in June 2006. Addressing issues raised by a second
major tenant will be an important consideration in the next contract.
FINANCIAL IMPACT: The direct impact of this agreement (and of the basketball
generally) on arena financial operations will be determined by attendance
figures. Over 24 home games, average attendance will need to be about 1,450
for the city to cover the cost of this contract and the ice rental loss associated
with basketball. This is about the same breakeven point as last year. Staff
believes having professional basketball at the arena has benefits that extend
beyond arena operations (downtown activity, etc.) that make this a prudent risk
for the city to take.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approval of amendment.
Motion by Commissioner Gawron, second by Commissioner Spataro to approve
the amendment to the Arena Operations Management Contract.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
D. Sewer Rate Adjustment. FINANCE
SUMMARY OF REQUEST: At the time the 2006 budget was adopted, staff noted
that it appeared a sixteen percent sewer rate increase would be needed to
offset the impacts of the Sappi downsizing. Based on the additional information
that has become available since budget adoption, it still appears that a sixteen
percent increase is needed. Historical and projected financial data for the
sewer fund indicates the need for the 16% percent increase to take effect
January 1, 2006. The rate adjustment will move residential sewer rates from
$1.32/hcft to $1.53/hcft and commercial/industrial rates from $1.66 to $1.93. The
impact on a typical household using 15,000 gallons of water will be an
additional $4.20/month $12.60/quarter).
FINANCIAL IMPACT: The sewer rate adjustments will generate an estimated
$672,000 additional full-year revenue for the city’s sewer fund.
BUDGET ACTION REQUIRED: None at this time. Adoption of these fee
adjustments will help the city attain its 2006 budgeted revenue estimates.
STAFF RECOMMENDATION: Adoption of the fee adjustment resolution.
Motion by Commissioner Spataro, second by Commissioner Gawron to approve
the sewer rate fee increase.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and
Spataro
Nays: None
MOTION PASSES
E. Sale of Water to Idlewild Resort in Norton Shores. PUBLIC WORKS
SUMMARY OF REQUEST: Nugent Sand Company (NSC) has requested permission
to purchase water from the City of Muskegon via the City of Norton Shores on a
temporary basis.
FINANCIAL IMPACT: The City of Muskegon will be paid an annual readiness to
serve fee of $1,600 (with allowance for future adjustments) plus a water rate
based on 1.35 of the water used. These provisions will be in place until such time
as the City of Norton Shores builds their own system to handle this water
demand.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends that the City of Muskegon City
Commission approve the documents for the temporary sale of water to Idlewild
Resort.
Motion by Vice Mayor Larson, second by Commissioner Spataro to approve the
sale of water to Idlewild Resort in Norton Shores.
ROLL VOTE: Ayes: Davis, Gawron, Larson, shepherd, Spataro, Warmington, and
Carter
Nays: None
MOTION PASSES
F. Consideration of Bids: Street Lights along Shoreline Drive. ENGINEERING
SUMMARY OF REQUEST: As per your directions, bids were solicited and received
to install approximately twenty (20) street lights along Shoreline Dr., between
Ottawa & First as well as Terrace Street between Morris & Shoreline Dr. John
Howell of Lansing, Michigan submitted the lowest bid of $70,000 ($3,500 per
light). Windemuller (Montague, MI) submitted the only other bid of $94,000.
Your authorization to enter into a contract with John Howell is requested should
it be your desire for the City to be the owner of those lights.
FINANCIAL IMPACT: The installation cost of $70,000 plus any direct expenses to
Consumer Energy to provide the energy source which is estimated at $5,000.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize staff to enter into a contract with John R.
Howell.
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the bid and enter into a contract with John R. Howell for street lights along
Shoreline Drive and Terrace.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, and Gawron
Nays: Larson
MOTION PASSES
G. Concurrence With the Housing Board of Appeals Notice and Order to
Demolish 209 & 211 Merrill, 235 Monroe, 642 McLaughlin – Garage, and
1120 Jefferson. 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 above mentioned
structures are unsafe, substandard, public nuisances and that they be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of these 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: CDGB 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 decision to demolish 209 & 211 Merrill, 235
Monroe, and 642 McLaughlin – garage only.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, and
Shepherd
Nays: None
MOTION PASSES
Motion by Commissioner Spataro, second by Commissioner Shepherd to concur
with the Housing Board of Appeals decision to demolish 1120 Jefferson.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
2005-111 ANY OTHER BUSINESS:
a. Letter to Nugent Sand.
Motion by Commissioner Davis, second by Commissioner Carter to request staff
to write a letter in opposition of additional sand mining of 23 acres of land.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Carter, and Davis
Nays: None
Absent: Warmington (stepped out of the room)
MOTION PASSES
b. Solid Fuel Heating Appliance.
Motion by Commissioner Spataro, second by Commissioner Gawron to direct
staff to not take any applications and let the Planning Commission come up with
regulations.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
2005-112 PUBLIC PARTICIPATION: Various comments were heard.
ADJOURNMENT: The City Commission Meeting adjourned at 7:10 p.m.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk
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