View the PDF version Google Docs PDF Viewer
CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 26, 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, October 26,
2004.
Mayor Warmington opened the meeting with a prayer from Pastor Anderson
of the Philadelphia Baptist Church 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, Stephen Gawron, Clara Shepherd, Lawrence Spataro, City
Manager Bryon Mazade, City Attorney John Schrier, and City Clerk Gail
Kundinger.
Absent: Commissioner Kevin Davis (excused).
2004-94 HONORS AND AWARDS:
A. Annual Service Awards. CIVIL SERVICE
The service awards were presented by Ray Murdaugh.
2004-95 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Commission Worksession
that was held on Monday, October 11, 2004; and the Regular Commission
Meeting that was held on Tuesday, October 12, 2004.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Approval of Contractor for Rehabilitation of the House at 510 Creston.
COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Top Notch Design, 4740
Jension Rd., Fruitport, MI for the rehabilitation of the home at 510 Creston for the
cost of $53,890. The only other bid received was from Lewis Johnson for $58,750
of 16076 Bonita Court, Grand Haven, MI. After the rehabilitation is completed,
the home will be sold to a qualified first-time homebuyer continuing the City’s
aggressive neighborhood revitalization efforts under the Operation “Crest to
Success”.
FINANCIAL IMPACT: The funding for the project will be taken from the City’s 2003
HOME funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the contract with Top Notch Design and
direct the Mayor and Clerk to sign the contract.
C. Lead Based Paint Abatement at 510 Creston. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the bid with Success Builders, 2722 E.
Broadway for the lead base paint abatement of the city-owned home at 510
Creston for $18,500. The other bids received were from West Michigan
Construction, 2600 Patterson S.E., Grand Rapids, MI; and A-1 Professional
Construction for $19,900 and $21,925 respectfully. After the lead base paint
abatement is complete, the structure will be totally rehabilitated and then sold
to a qualified low to moderate-income homebuyer.
FINANCIAL IMPACT: Cost of the abatement will be allocated from the 2002
HOME budget for lead based paint abatement.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the bid and authorize staff to contract
the work with Success Builders of Muskegon.
Motion by Commissioner Gawron, second by Commissioner Shepherd to
approve the Consent Agenda as read.
ROLL VOTE: Ayes: Warmington, Carter, Gawron, Larson, Shepherd, Spataro
Nays: None
MOTION PASSES
2004-96 UNFINISHED BUSINESS:
A. SECOND READING: Muskegon Boiler Works Study Committee Final
Report. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The Muskegon Boiler Works Study Committee, which
was appointed by the City Commission on June 22, 2004 to study the historic
significance of the Boiler Works property and make a recommendation
regarding the establishment of an historic district, has developed a final report.
The property is located at 1204 Eighth Street (described as City of Muskegon
Revised Plat of 1903 Block 317, Lots 9-13). To finalize its duties, the Study
Committee is forwarding on the final report with a recommendation to the City
Commission to establish the Boiler Works Historic District and to amend Chapter
11 of the Code of Ordinances concerning Historic Districts and the Historic
District Commission, to reflect the addition of the new district.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To accept the Muskegon Boiler Works Study
Committee report and recommendation and authorize the Clerk to sign the
Ordinance amending Chapter 11 of the Code of Ordinances concerning
Historic Districts and the Historic District Commission.
COMMITTEE RECOMMENDATION: The Muskegon Boiler Works Study Committee
recommends approval of the establishment of an historic district for the Boiler
Works property. The Planning Commission recommended approval to the City
Commission at their August 12, 2004 meeting.
Motion by Vice Mayor Larson, second by Commissioner Carter to approve the
establishment of an historic district for the Boiler Works property and amend
Chapter 11 of the Code of Ordinances.
ROLL VOTE: Ayes: Carter, Larson, Shepherd, Warmington
Nays: Gawron, Spataro
MOTION PASSES
2004-97 NEW BUSINESS:
A. FIRST READING: Adoption of Alternative Provision of City Income Tax
Act (Act 284 of 1964). INCOME TAX
SUMMARY OF REQUEST: The adoption of the alternative provision of the City
Income Tax Act, (Act 284 of 1964), Chapter 3, Section 141.760 which will require
employers over the one hundred dollar monthly withholding threshold to pay to
the City the full amount of tax withheld on or before the last day of the month
following the close of each calendar month. Effective January 1, 2005.
FINANCIAL IMPACT: The adoption of this provision will allow the city to collect
revenue faster. Also, it will enhance our ability to forecast economic trends from
a quarterly to a monthly basis.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval recommended.
Motion by Commissioner Spataro, second by Commissioner Carter to adopt the
alternative provision of City Income Tax Act.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter
Nays: None
MOTION PASSES (REQUIRES SECOND READING)
B. Approval of Subordination Agreement with Crestmark Bank in Regards
to Michigan Steel. TREASURER
SUMMARY OF REQUEST: Michigan Steel purchased the assets of West Michigan
Steel through section 363-bankruptcy sale, which extinguished all liens on the
personal property. In an attempt to retain some interest in the personal property
for those tax years, the City of Muskegon City Commission approved and signed
a promissory note and security agreement with Michigan Steel for repayment of
delinquent personal property taxes in November 2003.
Michigan Steel is refinancing through Crestmark Bank who is now requesting to
enter into a subordination agreement with the City of Muskegon. This
agreement only affects the previous tax years covered in the bankruptcy
proceeding. The City of Muskegon retains all superior tax lien rights for future tax
years. This would essentially be a continuation of the original subordination
agreement with Prairie Financial.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: The staff recommends approval of the subordination
agreement with Crestmark Bank.
Motion by Commissioner Gawron, second by Commissioner Spataro to approve
the Subordination Agreement with Crestmark Bank in regards to Michigan Steel.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter
Nays: None
MOTION PASSES
C. Sale of Parcel at 1537 S. Getty. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of 1537 S. Getty Street to R. Walker
Construction Company, 3765 S. 41 Road, Cadillac, MI 49601. This company will
construct a 7,500 sq. ft. industrial building that will be occupied by Fastenal
Company, currently located at 1590 Creston Street. Fastenal is a warehouse
wholesaler to the manufacturing industry. The property is zoned I-1, Light
Industrial, which allows for this use as a principal use. Fastenal will purchase the
building after completion from R. Walker Construction Company. The purchase
price is $30,000, which is the full asking price. Fastenal will employ 10-12
employees. The purchase agreement contains a condition, which will require
the company to construct the building within 18 months.
FINANCIAL IMPACT: The sale of this lot will put the property back on the tax
roles, and bring additional income tax revenue from those employed at the
company.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution, deed, and any other necessary
documents.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the sale of 1537 S. Getty Street to R. Walker Construction Company.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Gawron
Nays: None
MOTION PASSES
D. Opposing House Bill 4358 – Michigan Vehicle Code Amendment.
PUBLIC WORKS
Motion by Commissioner Spataro, second by Vice Mayor Larson to adopt the
resolution.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Gawron, Larson
Nays: None
Absent: Shepherd (stepped out of the room)
MOTION PASSES
The City Commission Meeting adjourned at 6:05 p.m.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk
Sign up for City of Muskegon Emails