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CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 28, 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, September
28, 2004.
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.
2004-85 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Special Commission
Meeting that was held on Wednesday, September 8, 2004; the Commission
Worksession that was held on Monday, September 13, 2004; and the Regular
Commission Meeting that was held on Tuesday, September 14, 2004.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Brownfield Site Assessment Consulting Contract – Couture
Environmental Strategies LLC. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The City of Muskegon was awarded a Brownfield
Grant/Loan, in the amount of $1,000,000 ($500,000/grant, $500,000/loan), for the
purposes of providing funding for environmental investigations, Baseline
Environmental Assessments and Due Care Plans to facilitate redevelopment and
reuse of properties in the City. Anne Couture, of Couture Environmental
Strategies LLC, has been the City’s consultant for grant administration and grant
writing for these activities. It is recommended that Ms. Couture be retained in
this capacity to continue with the grant administration during the duration of the
grant activities. Therefore, the Commission is asked to approve the proposal
from Ms. Couture and authorize the Mayor to sign.
FINANCIAL IMPACT: The budget for grant administration activities is 10% of the
total amount of the grant and loan for a total of $100,000. The cost will be
covered by the grant funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the proposal between the City of
Muskegon and Couture Environmental Strategies LLC, and authorize the Mayor
to sign the proposal.
C. Purchase a New Wheel Loader. PUBLIC WORKS
SUMMARY OF REQUEST: Approval to purchase one Case 721D loader.
FINANCIAL IMPACT: Total cost per unit $82,000.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve purchase of one 721D loader from West
Michigan Power.
D. 2004-2005 Transportation Planning Program Funding. CITY MANAGER
SUMMARY OF REQUEST: To approve the City’s share of the local matching funds
for the Muskegon County Metropolitan Planning Program for fiscal year 10/1/04
to 9/30/05. The City receives grant funds through this program for certain major
streets.
FINANCIAL IMPACT: $16,040 from the Major Street Fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve this request.
Motion by Commissioner Gawron, second by Commissioner Davis to approve
the Consent Agenda.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis,
Gawron
Nays: None
MOTION PASSES
2004-86 PUBLIC HEARINGS:
A. Request for Name Change on Industrial Development Certificate No.
95-724 – Great Lakes Die Cast. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Great
Lakes Die Cast Corporation, 701 W. Laketon Avenue, Muskegon, Michigan, has
requested name change on Industrial Development Certificate No. 95-724 for
property located at 701 W. Laketon Avenue, Muskegon, Michigan. The
certificate was originally granted to Dilesco Corporation in 1995, but since the
company has new owners, the name change is requested. The transfer will be
for both real and personal property. The company continues to perform the
same work as under the previous owners.
FINANCIAL IMPACT: Certain additional income and property taxes will be
collected.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution changing the name on
the Industrial Development Certificate to Great Lakes Die Cast Corporation.
The Public Hearing opened at 5:34 p.m. to hear and consider any comments
from the public. No comments were heard.
Motion by Vice Mayor Larson, second by Commissioner Carter to close the
Public Hearing at 5:36 p.m. and approve the name change on Industrial
Development Certificate No. 95-724 to Great Lakes Die Cast Corporation.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron,
Larson
Nays: None
MOTIONPASSES
B. Request for Name Change on Industrial Development Certificate No.
98-551 – Great Lakes Die Cast. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Great
Lakes Die Cast Corporation, 701 W. Laketon Avenue, Muskegon, Michigan, has
requested name change on Industrial Development Certificate No. 98-551 for
property located at 701 W. Laketon Avenue, Muskegon, Michigan. The
certificate was originally granted to Dilesco Corporation in 1998, but since the
company has new owners, the name change is requested. The transfer will be
for both real and personal property. The company continues to perform the
same work as under the previous owners.
FINANCIAL IMPACT: Certain additional income and property taxes will be
collected.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution changing the name on
the Industrial Development Certificate to Great Lakes Die Cast Corporation.
The Public Hearing opened at 5:36 p.m. to hear and consider any comments
from the public. No comments were heard.
Motion by Commissioner Gawron, second by Commissioner Spataro to close the
Public Hearing at 5:39 p.m. and approve the name change on Industrial
Development Certificate No. 98-551 to Great Lakes Die Cast Corporation.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson,
Shepherd
Nays: None
MOTIONPASSES
2004-87 NEW BUSINESS:
A. Groundwater Ordinance Amendment. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: To approve an amendment to the City Groundwater
Ordinance to include properties that have been identified as “affected”
premises as defined in the Groundwater Ordinance. An “affected” premises
shall mean a parcel of property any part of which is located within an appendix
map made part of this ordinance, as originally enacted or amended, which
map shows the parcel to have contaminated groundwater under any part of
the parcel. Brunswick Corporation (owner of the parcel) and R & B Trailer
Leasing (adjacent to the parcel) have been notified by mail of the amendment
herein.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the amendment.
Motion by Commissioner Spataro, second by Commissioner Gawron to approve
the amendment to the City Groundwater Ordinance.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd,
Spataro
Nays: None
MOTION PASSES
B. Audit Contract Extension. FINANCE
SUMMARY OF REQUEST: The contract for the City’s annual audit is expired.
Because of the possibility that voters may approve changes to the City’s fiscal
year this November, staff is recommending that the contract with the current
independent audit firm (Hoffman, Steensma & Plamondon) be extended
through 12/31/04 and through the potential stub-year period (6/30/05 or
9/30/05). This will provide much needed continuity through a difficult transition.
Waiting to bid out audit services will have the added advantage (if the fiscal
year is changed) of attracting more competitive bids, since the current 12/31
year-end is unattractive to many CPA firms because of tax preparation season.
Typically audit contracts are awarded for a five-year period so it is sensible to
wait until we know what the future fiscal year-end will be.
FINANCIAL IMPACT: proposed cost for 12/31/04 audit - $34,000 which is the
same as for the 12/31/03 audit. Proposed cost for the stub-period audit -
$26,000.
BUDGET ACTION REQUIRED: none at this time. The 2005 budget incorporates
funding for the 12/31/04 audit. If voters approve the fiscal year proposals, the
entire 2005 budget will need to be reforecast and restructured at a later date.
STAFF RECOMMENDATION: Approval of the audit contract extension to cover
the 12/31/04 audit and the audit for the stub year, if the November ballot
proposal is approved by voters.
Motion by Commissioner Spataro, second by Commissioner Carter to extend the
contract.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro,
Warmington
Nays: None
MOTION PASSES
C. Proposed Water Rate Increase. FINANCE
SUMMARY OF REQUEST: The City is in the midst of a $16.5 million renovation of
the Water Filtration Plant. To fund these improvements, the City has borrowed
$13.9 million from the Drinking Water Revolving Fund (DWRF) and has committed
other resources to the project. It is necessary to raise water user fees significantly
in order to cover debt service requirements associated with the filtration project
and to offset rapidly rising operational costs. Staff is recommending that the
water user charge be raised from the current $1.09/hcft to $1.40/hcft effective
January 1, 2005.
FINANCIAL IMPACT: The following table shows how the rate increase will impact
typical residential households:
Sample Users Quarterly Water Bill Quarterly Water Bill
Before Increase After 1/1/05 Increase
Using 7,500 gallons per $32.70 $42.00
month (1-2 person
household)
Using 15,000 gallons per $65.40 $84.00
month (3-4 person
household)
As shown on the survey, Muskegon’s residential water rates will continue to be
below the average for Michigan communities after implementation of the
increase.
BUDGET ACTION REQUIRED: None at this time. The 2005 water fund budget
incorporates the projected revenues from the rate increase.
STAFF RECOMMENDATION: Approval of the resolution implementing the
proposed water rate increase.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the water rate increase.
ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington,
Carter
Nays: None
MOTION PASSES
2004-88 ANY OTHER BUSINESS:
A. Commissioner Shepherd requested assistance with costs associated
with attendance at the NLC Conference held in Indianapolis, Indiana from
November 30 through December 4, 2004.
Motion by Commissioner Carter, second by Mayor Warmington to give the $415
registration fee from Mayor Warmington and Commissioner Carter’s travel
allocation.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter,
Davis
Nays:
MOTION PASSES
B. Muskegon Big Red Band Parents requested that the Special Event late
fee be waived for the annual Tag Sale in October.
Motion by Vice Mayor Larson, second by Commissioner Shepherd to waive the
fee one time.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis,
Gawron
Nays: None
MOTION PASSES
The City Commission Meeting adjourned at 6:24 p.m.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk
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