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CITY OF MUSKEGON
CITY COMMISSION MEETING
DECEMBER 14, 2004
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, December
14, 2004.
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
Stephen Gawron, Clara Shepherd, Lawrence Spataro, Chris Carter, and Kevin
Davis, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk
Gail Kundinger.
Absent: None
2004-105 INTRODUCTIONS/PRESENTATION:
A. Juvenile Justice Grant Update: MARTHA BOTTOMLEY
2004-106 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, November 23, 2004.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Resolution for Charitable Gaming License. CITY CLERK
SUMMARY OF REQUEST: The Muskegon Magic Youth Program Inc. is requesting a
resolution recognizing them as a non-profit organization operating in the City for
the purpose of obtaining a gaming license. They have been recognized as a
501 (c) (3) organization by the State. They would like to hold a raffle at Cuti’s
Sports Bar & Grill on February 18, 2005.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
C. Extending Contract – Snowplowing Services at Muskegon Mall and
Surrounding Areas, 2004/2005 Winter Season. PUBLIC WORKS
SUMMARY OF REQUEST: Extend contract with TRI-US Services, Inc., Kent City, MI
to provide snowplowing, de-icing, and snow removal at Muskegon Mall and
surrounding areas through the 2004/2005 winter season.
FINANCIAL IMPACT: Need for service is weather-dependent. Cost of service for
2002/2003 winter season was $13,784 and YTD 2003/2004 is estimated at $7,500.
BUDGET ACTION REQUIRED: None, expenses will again be charged to the
General Fund, account 101-70585.
STAFF RECOMMENDATION: Approval.
D. Contract Agreement – Funeral Service Portion of Burials. PUBLIC
WORKS
SUMMARY OF REQUEST: Enter into contractual agreement with Wilbert Burial
Vault Co., Muskegon, MI, to provide the funeral service portion(s) of burials at all
four city-owned cemeteries for 2005. Agreement is subject to satisfactory
negotiation with Local 517M Union.
FINANCIAL IMPACT: No financial impact to the City of Muskegon.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve request to contract out service.
COMMITTEE RECOMMENDATION: The Cemetery Board has approved our
request to enter into contractual agreement with Wilbert Burial Vault Co.
E. Sale of Sniper Rifle. PUBLIC SAFETY
SUMMARY OF REQUEST: During the course of the past year we have been
conducting an assessment of the weapons that are currently maintained by the
police department. Our goal is to more fully utilize those weapons that are
available to us and to liquidate those that are not. For several years the police
department has had in its possession a Steyr Mannlicher SSG69 sniper rifle. The
rifle has been maintained in good condition. As we have no plans to maintain
and train a sniper team, we feel that our best course of action in regards to this
particular weapon is to sell it. Money received during such a sale would then be
utilized towards the purchase of weapons that we do need.
We have had a request from the Muskegon County Sheriffs Office to purchase
this weapon. The weapon has been appraised by three local gun dealers. Our
firearms staff recommends that based upon the appraisals and the condition of
the weapon that it should be offered to the sheriff’s office for the sum of $1,200.
FINANCIAL IMPACT: $1,200 in revenue to the city’s budget.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of this request.
F. Pension Ordinance Change Due to Contract Settlement. FINANCE
SUMMARY OF REQUEST: The recent arbitration/contract settlement of the patrol
officers’ labor contract calls for 1) reduction in normal retirement age from 53 to
51, 2) increase in multiplier from 2.6% to 2.75% effective 1/1/07, 3) change in the
interest rate used to compute lump-sum annuity withdrawals. This amendment
brings the pension ordinance into alignment with the new contract.
FINANCIAL IMPACT: Higher pension costs for the City. These costs will be offset
by savings in other areas of the contract.
BUDGET ACTION REQUIRED: None. The change will be reflected in future
actuarial valuations, which set the City’s annual pension contribution level.
STAFF RECOMMENDATION: Approval.
G. Brownfield Consulting Contract – Anne Couture. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The City of Muskegon has been contracting with Anne
Couture, of Couture Environmental Strategies LLC, during the last seven years, to
assist us with our Brownfield activities. She has excellent contacts at the
Department of Environmental Quality, since she worked there several years ago.
Therefore, her assistance is important in moving forward on the technical
aspects of our Brownfield Authority, as well as grant application assistance (she
was instrumental in assisting us in obtaining the $1 Million grant/loan from the
MDEQ this year). Not only does Ms. Couture work closely with our City Staff, but
we also refer potential Brownfield applicants to her. Since we instituted a
Brownfield Redevelopment Authority application fee, in the amount of $2,500,
the City has received funds, which help defray the costs of the contract. Funds
for Ms. Couture’s current contract have been expended (particularly due to the
work necessary in establishing a Brownfield TIFA for the former mall site, which
may be reimbursed to the City over time). Therefore, the Commission is asked to
approve the current proposal from Ms. Couture.
FINANCIAL IMPACT: Costs to the City will not exceed $15,000. It is expected that
this amount will allow for at least one year of service.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the proposal between the City of
Muskegon and Couture Environmental Strategies LLC, and authorize the Mayor
and Clerk to sign the proposal.
H. Transportation Improvement Program Submittal for: 2007 – 2008 and
Long Range Plan Projects. ENGINEERING
SUMMARY OF REQUEST: Authorization to submit the lists of projects to the West
Michigan Shoreline Regional Development Commission for inclusion in the FY
2007 – 2008 Transportation Improvement Program and the long Range Plan (20-
years). Projects submitted will be considered for Federal and State
transportation funding. Adoption of the resolution is required as part of the
submittal to commit the local match if project funding is granted.
FINANCIAL IMPACT: None at this time, however, a local match will be required
should we receive a grant for a particular project.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the project submittal and resolution.
I. Approval of Conveyance Application to the State of Michigan.
COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve Community and Neighborhood Services 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
$300.00, 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 request and have the Mayor sign
the application to the State of Michigan.
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the consent agenda.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, and
Gawron
Nays: None
MOTION PASSES
2004-107 NEW BUSINESS:
A. 2005 User Fee Update. FINANCE
SUMMARY OF REQUEST: City departments have reviewed and updated their
user fees and these have been incorporated into the Master Fee Resolution for
your consideration. New fees and fee changes proposed for 2005 include the
following:
• Increases to various cemetery service fees;
• New fees for cemetery chapel services and genealogy searches;
• Increase to environmental administration fee to cover increased collection
costs;
• Changes to cat license fees to make them consistent with County dog
license fees;
• Increases to most marina fee categories;
• Increase in daily launch ramp fees from $5 to $10; seasonal launch ramp fees
remain unchanged as we are trying to encourage people to purchase the
seasonal permits. Daily permits are very costly to administer and enforce.
• Increases to specialized fire services (e.g. down power lines);
• Increases to forestry service fees;
• New fee for hanging banners;
• Various recreation fee adjustments.
FINANCIAL IMPACT: Increased revenue for fee supported activities.
BUDGET ACTION REQUIRED: None at this time. Adoption of the 2005 Master Fee
Resolution will help the city attain its 2005 budgeted revenue estimates.
STAFF RECOMMENDATION: Approval.
Motion by Vice Mayor Larson, second by Commissioner Gawron to approve the
2005 user fees.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
B. Approval for Consultants – Brownfield Site Assessment Grant/Loan.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: There were eight proposals received from
environmental consultants for the Brownfield Site Assessment Grant/Loan. It is
necessary to choose one or more consultants; approved both by the City
Commission and the State (MDEQ), that will conduct the environmental
investigations. Anne Couture, Mohammed Al-Shatel and Cathy Brubaker-Clarke
reviewed the applications and are recommending three consultants, based on
the criteria contained in the table. The consultants are: Horizon Environmental
(Grand Rapids), Prein & Newhof, P.S. (Muskegon/Grand Rapids), ERM, Inc.
(Holland).
FINANCIAL IMPACT: The consultants site assessment work will be paid for from
the MDEQ Site Assessment Grant/Loan.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve Horizon Environmental, Prein & Newhoff,
P.S. and ERM, Inc. as consultants for the site assessment work associated with the
Brownfield Site Assessment Grant/Loan. Contracts with the individual
consultants will be brought to the City Commission for approval in January.
Individual sites will be assigned in a round-robin fashion.
Motion by Vice Mayor Larson, second by Commissioner Shepherd to approve
Horizon Environmental, Prein & Newhoff, P.S., ERM, Inc., and Westshore
Consulting as consultants for the site assessment work.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Larson, and Shepherd
Nays: Gawron and Spataro
MOTION PASSES
C. 2005 Salary Schedule and Fringe Benefits for Non-Represented
Employees and the 2005 Salary Schedule for Part-Time and Limited-
Term Employees. CITY MANAGER
SUMMARY OF REQUEST:
1) To establish the 2005 salary ranges for part-time and limited-term employees;
2) To approve and adopt the proposed salary ranges and salary schedules for
the non-represented administrative, technical, professional, and supervisory
employees for 2005 (2.0% increase).
3) Increase the employee health insurance premium co-pay from $9.23 per pay
to $20.00 per pay.
4) Increase the lifetime health insurance maximum from $225,000 to $300,000.
5) Allow up to 5 bereavement days (currently three) for immediate family
members (parent, spouse or children) upon written approval of the City
Manager.
FINANCIAL IMPACT:
1) None. The ranges are unchanged.
2) The salary increases will cost approximately $51,327 plus approximately
$12,831 in added fringe benefit costs.
3) This will save the City approximately $13,720 annually.
4) Exact cost is not available, but it is not substantial.
5) Cost will vary depending on use.
BUDGET ACTION REQUIRED: To authorize the necessary 2005 budgetary
amendments and transfer of money from the affected City funds (Contingency
Account for General Fund) to the appropriate salary and fringe benefit
accounts to accommodate the salary increases and fringe benefit adjustments.
STAFF RECOMMENDATION:
1) To approve the proposed 2005 salary ranges for part-time and limited-term
employees.
2) To approve and adopt the proposed 2005 salary ranges, salary schedules,
and fringe benefit changes for non-represented employees.
Motion by Commissioner Spataro, second by Vice Mayor Larson to approve the
2005 salary schedule and fringe benefits for non-represented employees and
the 2005 salary schedule for part-time and limited-term employees.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
D. Amendment to L.C. Walker Arena Management Agreement. CITY
MANAGER
SUMMARY OF REQUEST: To approve an amendment to the L.C. Walker Arena
management contract with Arena Management Group, L.L.C. This is necessary
to accommodate the additional expenses for set-up and security incurred due
to the Michigan Mayhem use of the arena.
FINANCIAL IMPACT: Increased costs for the AMG contract. These costs are
expected to be covered by the additional arena revenue generated by the
Mayhem.
BUDGET ACTION REQUIRED: None. The increases were anticipated in the 2004
budget reforecast and in the 2005 arena budget.
STAFF RECOMMENDATION: To approve the contract amendment.
Motion by Commissioner Gawron, second by Commissioner Spataro to approve
the amendment to the L.C. Walker Arena Management Agreement.
ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington, and
Carter
Nays: None
MOTION PASSES
E. Write-off of Uncollectible Accounts Receivable. TREASURER
SUMMARY OF REQUEST: Periodically it is necessary to purge from the City’s
general accounts receivable records items that are deemed uncollectible. In
most cases these items have gone through the entire collection process without
success. In some other cases, further collections efforts, such as using the
outside collection agency, have resulted in limited success. However, at this
time, it is requested that the City Commission authorize staff to write-off these
receivables from the City’s books.
FINANCIAL IMPACT: Reduce the City’s accounts receivable by $36,077.03. The
impact would be a decrease in the fund balance/retained earnings of several
City funds as follows:
101 General Fund $14,770.12
472 CDBG Fund 11,641.25
590 & 591 Sewer Fund & Water Fund 9,665.66
TOTAL: $36,077.03
BUDGET ACTION REQUIRED: For the General, Sewer and Water Funds, there are
sufficient funds for bad debt expense included in the 2004 budget, so no further
action is required.
STAFF RECOMMENDATION: Approval of the 2004 write-offs effective for the fiscal
year ending December 31, 2004, for the various funds.
Motion by Commissioner Shepherd, second by Vice Mayor Larson to approve
the write-off of uncollectible accounts receivable.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, and
Davis
Nays: None
MOTION PASSES
F. Amend Policy for Adjusting Uncollectible Accounts and Set Up
Allowance for Doubtful Accounts. TREASURER
SUMMARY OF REQUEST: To write-off $266,357 of A/R balances from the period
1998 through 2000, and increase the reserve for doubtful accounts from the
current level of $240,000 to $254,951.
This is also a request to amend the “Policy for Adjusting Uncollectible Accounts”
to be made consistent with the policy used for delinquent personal property
taxes. This involves 100% write-off of A/R balances more than 5 years old and
50% write-off of balances less than 5 years.
FINANCIAL IMPACT: To record $266,357 as bad debt expense in the general
fund for open balances from 1998, 1999 and 2000 years. Additionally, to record
$254,951 as an allowance for uncollectible accounts in the general fund for 50%
of open balances from 2001, 2002, 2003 and 2004 years. $240,000 was previously
set up as a reserve and $300,000 was budgeted as a contingency in the fiscal
year 2004 budget.
BUDGET ACTION REQUIRED: None at this time. The contingency account is
adequate to handle these adjustments.
STAFF RECOMMENDATION: To approve the requested changes.
Motion by Commissioner Spataro, second by Commissioner Carter to amend the
policy and set up an allowance for doubtful accounts.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, and
Gawron
Nays: None
MOTION PASSES
G. Shoreline Drive Phase II (First to Webster). ENGINEERING
SUMMARY OF REQUEST: Consideration of the bids received to reconstruct,
resurface and for signal & bridge work for the second and final phase of
Shoreline Drive. Jackson Merkey out of Muskegon is the lowest responsible
bidder with a bid price of $1,788,462.74.
FINANCIAL IMPACT: The construction cost of $1,788,462.74 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None, all costs are expected to be eligible for the
MDOT’s grant the City had received two years ago.
STAFF RECOMMENDATION: Staff recommendation will be presented at the work
session to allow for time to evaluate the bids in more detail.
Motion by Vice Mayor Larson, second by Commissioner Davis to award the
contract to Jackson Merkey.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
H. Engineering Services for Former Mall Site. ENGINEERING
SUMMARY OF REQUEST: To enter into an engineering service agreement after
review of staff recommendation presented at the Commission Worksession
December 13, 2004. Due to time limitation to commit the Enterprise Community
Funds which requires an executed agreement by the 20th of December,
proposals for full engineering service (Design & Construction) were solicited two
weeks ago and were due back on Wednesday, the 8th of December.
FINANCIAL IMPACT: The cost for the engineering services would be from the
Enterprise Community Funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve.
Motion by Commissioner Carter, second by Commissioner Davis to award the
contract to Fleis & Vandenbrink .
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, and
Shepherd
Nays: None
MOTION PASSES
I. Approval of Sale of City Owned Home at 1668 Beidler. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the resolution and instruct Community and
Neighborhood Services department to complete the sale transaction between
Mr. Anthony McCloud for the new Infill home at 1668 Beidler. Mr. McCloud’s
purchase price is $120,000 with a subsidy of $30,000 dollars.
The present site at 1668 Beidler was occupied with one of the homes that were
demolished a year and a half ago under the project title “Operation: At Long
Last,” 1668 Beidler is the second home of the former Turnkey-3 properties to be
sold by the CNS office.
FINANCIAL IMPACT: The HOME fund will receive $90,000 in program income
from the sale.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution.
COMMITTEE RECOMMENDATION: The Commission approved the original
construction of the home.
Motion by Commissioner Gawron, second by Commissioner Shepherd to
approve the sale of the City-owned home to Anthony McCloud
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and
Spataro
Nays: None
MOTION PASSES
J. Concurrence with the Housing Board of Appeals Notice & Order to
Demolish the Following: PUBLIC SAFETY
SUMMARY OF REQUEST: This is to request City Commission concurrence with the
findings of the Housing Board of Appeals that these 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 the structures and that the Mayor and City Clerk be authorized
and directed to execute a contract for demolition with the lowest responsible
bidder.
1. 756 Washington (Area 12)
CASE # & PROJECT ADDRESS: #EN-040058 – 756 Washington
LOCATION AND OWNERSHIP: This structure is located on Washington between
Beidler and Henry Street. It is owned by HUD.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted
5/18/04 and notice and order to repair/remove was issued 5/20/04. On 7/02/04
the HBA declared the property substandard and dangerous building.
FINANCIAL IMPACT: The cost of demolition will be paid out of the General Fund.
BUDGET ACTION REQUIRED: None.
SEV: $21,200.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
ESTIMATED COST OF REPAIRS: $20,000 exterior only.
Motion by Commissioner Spataro, second by Commissioner Gawron to concur
with the Housing Board of Appeals decision to demolish 756 Washington.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
2. 1463 Sixth
CASE # & PROJECT ADDRESS: #EN-040051 – 1463 Sixth.
LOCATION AND OWNERSHIP: This structure is located on Sixth between
Washington and W. Grand Avenue. The property was owned by Joe Hawkey,
who is incarcerated. As of 11/10/04 the property was acquired by Joe Ferrier.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted
4/12/04 and an interior inspection was conducted 5/7/04. The notice and order
to repair/remove was issued 5/7/04. On 7/1/04 the HBA declared the property
substandard and dangerous building.
OWNER CONTACT: The owner’s mother scheduled the interior inspection, but
there has been no further contact from her. As of 11/10/04 Ron Ferrier sent the
Inspection Department a Warranty Deed showing ownership.
FINANCIAL IMPACT: CDGB Funds
BUDGET ACTION REQUIRED: None
SEV: $15,200
ESTIMATED COST TO REPAIR: $20,000
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 1463 Sixth.
ROLL VOTE: Ayes: Gawron, Shepherd, and Spataro
Nays: Davis, Larson, Warmington, and Carter
MOTION FAILS
3. 557 W. Clay
CASE # & PROJECT ADDRESS: #01-048 – 557 W. Clay Avenue
LOCATION AND OWNERSHIP: This property is located in the Nelson
Neighborhood and is owned by Scott Sieradzki.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted
10/23/01. A notice to repair or demolish was issued 10/30/01. On 12/4/01 the
trade inspectors and the Directors of Inspections met the owner on site to discuss
his repair plan and timeline. The case was brought before the HBA 12/6/01 and
the owner was offered a repair schedule which was compiled by the Director of
Inspections. Mr. Sieradzki did agree the schedule was fair, but he did not agree
to sign it. The owner was given the opportunity to repair, provided certain
conditions were met within 30 days. The owner did not comply. The structure
was declared substandard, a public nuisance when the case was brought
before the HBA again on 6/6/02. In August 2002 the foundation was repaired.
The case was brought before the HDC on September 7, 2004 which concurred
with the findings of the HBA.
OWNER CONTACT: Mr. Sieradzki was present at the 12/6/01 HBA meeting, but
was not able to attend the one on 6/6/02. He did call the office on that date to
state his intentions, which are noted in the file. Mr. Sieradzki was present at the
HDC meeting of 9/07/04. There has been no contact since that meeting.
FINANCIAL IMPACT: The cost of demolition will be paid out of the General fund.
BUDGET ACTION REQUIRED: None
SEV: $29,100
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish
ESTIMATED COST OF REPAIRS: $80,000+
Motion by Commissioner Spataro, second by Vice Mayor Larson to concur with
the Housing Board of Appeals decision to demolish 557 W. Clay.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, and Carter
Nays: Davis
MOTION PASSES
The City Commission Meeting adjourned at 7:20 p.m.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk
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