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CITY OF MUSKEGON CITY COMMISSION MEETING AUGUST 25, 2015 CITY COMMISSION CHAMBERS @ 5:30 P.M. AGENDA □ CALL TO ORDER: □ PRAYER: □ PLEDGE OF ALLEGIANCE: □ ROLL CALL: □ HONORS AND AWARDS: □ INTRODUCTIONS/PRESENTATION: □ CITY MANAGER’S REPORT: □ CONSENT AGENDA: A. Approval of Minutes City Clerk B. Youth Basketball League and Open Gym Proposal – Muskegon Public Schools Planning and Economic Development C. Certification of MERS Representatives Finance D. Lakeshore Museum Loan Agreement (LaFrance Fire Truck) Public Safety E. Special Liquor License – Michigan Irish Music Festival Public Safety F. MSI Property – “Agreement of Purchase and Sale” (PA) Planning and Economic Development G. Sale of Boat Slip (A-08) at Harbour Towne Department of Public Works H. Public Safety Director Employment Agreement City Manager I. City Manager Employment Agreement City Manager □ PUBLIC HEARINGS: □ COMMUNICATIONS: □ UNFINISHED BUSINESS: A. Section – 10-351 (F) (3) Registration of Rental Dwellings Ordinance Amendment Public Safety □ NEW BUSINESS: A. Request for $9,000 from United Way for Day of Caring 2015 Department of Public Works □ ANY OTHER BUSINESS: □ PUBLIC PARTICIPATION: ► Reminder: Individuals who would like to address the City Commission shall do the following: ► Fill out a request to speak form attached to the agenda or located in the back of the room. ► Submit the form to the City Clerk. ► Be recognized by the Chair. ► Step forward to the microphone. ► State name and address. ► Limit of 3 minutes to address the Commission. ► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.) □ CLOSED SESSION: □ ADJOURNMENT: ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724- 6705 OR TTY/TDD DIAL 7-1-1- TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705. Memorandum To: Mayor and Commissioners From: Frank Peterson Re: City Commission Meeting Date: August 19, 2015 There are a number of items on the agenda that I thought you could use a little background on as you prepare for our meeting. 1. Under the consent agenda, we are asking the Commission to approve: a. Last meeting’s minutes. b. Renewal of the youth basketball league and open gym agreement with Muskegon Public Schools. The cost of the program is $18,500 annually – which is unchanged from previous years. c. We are asking that the Commission certify Derrick Smith and Jan Labrenz as our City’s MERS Representatives at the annual conference in Grand Rapids. MERS of Michigan is the retirement system that manages our employee pension program. d. We are seeking approval of a renewed agreement to loan the LaFrance Fire Truck to the Lakeshore Museum Center. e. We are seeking authorization to allow spirits to be sold that the Michigan Irish Music Festival in September. This is similar to requests previously approved for this event prior to 2015. f. We are seeking approval to enter into a purchase agreement for 9 building lots in the Nelson Neighborhood. The lots comprise the area where the St. Joseph Church formerly stood. The land owner has agreed to sell the lots for $5,000 each - $45,000 total. These properties will be the catalyst for our market-rate home building program. Upon approval of the purchase, we expect to begin the planning/building process. The goal will be to have between 7 and 9 houses constructed on the site and ready for sale by late spring 2016. g. We are seeking approval to sell a city-owned boat slip at Harbor Towne Marina for $35,000. h. We are seeking approval of the second amendment to the City Manager’s employment agreement. i. We are seeking approval of an employment agreement with the Public Safety Director. The goal of the employment agreement is to address a discrepancy in the employment status that has left the position ineligible for social security benefits. 2. Under Unfinished Business: a. We are re-presenting the Fire/Escrow Ordinance that was initially presented at the meeting earlier this month. We took input from the individuals that spoke and eliminate the tiered system of escrow requirement. Now, this with 10 or more rental houses will have the ability to escrow $10,000 with the City in lieu of obtaining fire insurance. If there are questions on any agenda items, please try to let staff know in advance, and we will be sure to have the appropriate data/research available at the meeting. Frank Peterson City Manager Date: August 25, 2015 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve minutes of the August 10, 2015 Commission Worksession meeting and the August 11, 2015 City Commission Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. City of Muskegon City Commission Worksession August 10, 2015 City Commission Chambers 5:30 PM MINUTES 2015-55 Present: Commissioners German, Hood, Gawron, Johnson, Turnquist, and Spataro. Absent: Commissioner Rinsema-Sybenga. Legal Services. The City Commission requested staff to negotiate a five year agreement for Legal Services with Parmenter O'Toole to provide both general legal and prosecution services. Staff is asking the Commission to approve a five year agreement. This items will be on the August 11, 2015 Commission Meeting for consideration by the Commission. International Property Maintenance Code. We are currently operating under the State Construction code. The last update was around 2002. The Public Safety Director is recommending the Commission adopt the 2015 International Property Maintenance Code. The proposed code will complement the City's other existing codes. There are approximately 18 items in the current chapter 10 of the Building Ordinance that staff would recommend be retained. They include code related to rental registration, registering contractors, and the Housing Board of Appeals. Commissioners indicated they would like a comparison of the proposed changes. Staff anticipates having a document prepared for the Commission to review in January. Any Other Business Vice Mayor Spataro stated Sixth and Webster should be a four-way stop as well as Walton and Pine. Commissioner Johnson commented about the recent test to add stop signs at Pere Marquette Park. A police officer directing traffic during heavily traveled times could be a solution. The City indicated he will speak to the City Engineer and present a traffic control order to Commission. Adjournment. Motion by Commissioner Hood, seconded by Commissioner Johnson to adjourn at 7:03 p.m. MOTION PASSES ____________________________ Ann Marie Meisch, MMC City Clerk CITY OF MUSKEGON CITY COMMISSION MEETING AUGUST 11, 2015 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, MI at 5:30 p.m., Tuesday, August 11, 2015. Mayor Stephen Gawron opened the meeting with prayer, after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL FOR THE REGULAR COMMISSION MEETING: Present: Mayor Stephen Gawron, Vice Mayor Lawrence Spataro, Commissioners Johnson, Hood, and Turnquist, City Manager Franklin Peterson, City Attorney John Schrier, and City Clerk Ann Meisch. Absent: Commissioner German and Commissioner Rinsema-Sybenga 2015-56 CONSENT AGENDA: A. Approval of Minutes City Clerk SUMMARY OF REQUEST: To approve the minutes of the July 28, 2015 City Commission Meeting. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the minutes. B. Legal Services City Manager SUMMARY OF REQUEST: The City Commission requested staff to negotiate a five year agreement for Legal Services with Parmenter O’Toole to provide both general legal and prosecution services. Staff is asking the Commission to approve the five year agreement. FINANCIAL IMPACT: $300,000 annually BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the Legal Services Agreement with Parmenter O’Toole and authorize the City Clerk and Mayor to sign. D. Bike Time – Rescind “Request for a 5-year commitment for Bike Time, 2015-2019” Planning and Economic Development SUMMARY OF REQUEST: To terminate and rescind the “Request for a 5-year commitment for Bike Time, 2015-2019” granted by the City Commission on October 14, 2014. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: It is recommended that the October 14, 2014 City Commission’s motion granting a 5-year commitment for Bike Time, 2015-2019 be rescinded. E. Rebel Road – Request for a 5-year commitment for Rebel Road, 2016- 2020 Planning and Economic Development SUMMARY OF REQUEST: Rebel Road has requested a five-year commitment from the City to host Rebel Road downtown. There are no major changes from the way Rebel Road was run in 2015, and the streets affected are the same as past years. This year, 2015, was the first year that Rebel Road replaced Bike Time and was organized by the Child Abuse Council in coordination with a number of downtown business owners. They are asking for the 5-year agreement to make planning the event easier. Knowing their plans well in advance should also help City staff with their planning. Items requiring City Commission approval are the same as in previous years: that the City waive DPW equipment rental costs, that Rebel Road be able to use their own labor pool when possible rather than using City staff, and some deviation from street closure times listed in the City’s special event policy. FINANCIAL IMPACT: Request for the waiver of equipment rental fees. BUDGET ACTION REQUIRED: None STAFF RECOMMENDAITON: It is recommended that staff be allowed to make the final decision regarding actual street closures, rental fees and costs to be coordinated through the City Manager. In addition, staff recommends that if Rebel Road picks up items such as picnic tables, bleachers, and trash cans for distribution at the proper locations, there will be no equipment rental charge to Rebel Road. This must first be approved by and coordinated through City staff. It is also recommended that City staff review staffing levels for City personnel with the Rebel Road staff, with the City making the final decision on the number of City staff needed for the event. Regarding street closures, staff recommends approval with the condition that Rebel Road notify affected downtown businesses of the dates and times of street closures and the date and time that No Parking restrictions go into effect on those streets. F. Sale of Property at 1690 Creston Street Planning and Economic Development ITEM REMOVED PER REQUEST OF STAFF G. Sale of Property at 881 Pine Street Planning and Economic Development SUMMARY OF REQUEST: Staff is seeking approval to sell the buildable, commercially zoned lot at 881 Pine Street to the adjacent business, B.K. Muskegon Properties, LLC, at 928 Terrace Street. They will be remodeling the store and will use the new lot to add an additional drive thru lane. The lot measures roughly 8,700 square feet and the applicant has offered $40,000 for the parcel. FINANCIAL IMPACT: Staff recommends a sale price of $40,000 BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval and signature of the purchase agreement and resolution. I. Approval of a Neighborhood Enterprise Zone Certificate Planning and Economic Development SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from Bruce Lindstrom for the new construction of a home at 331 Terrace Point Circle. The property is located in a Neighborhood Enterprise Zone for new construction. The application states that the estimated cost for construction will be $382,446 in materials. The applicant has met local and state requirements for the issuance of 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 12 years. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the NEZ Certificate. Motion by Vice Mayor Spataro, second by Commissioner Johnson to accept the Consent Agenda as read with the exception of items C and H. ROLL VOTE: Ayes: Gawron, Hood, Spataro, Turnquist, and Johnson. Nays: None MOTION PASSES 2015-57 ITEMS REMOVED FROM CONSENT AGENDA: C. Section – 10-351 (F) (3) Registration of Rental Dwellings Ordinance Amendment Public Safety SUMMARY OF REQUEST: The Director of Public Safety requests that the City Commission review and authorize the proposed amendment to Chapter 10 – Buildings, Article VI, Division 2, subdivision III “Rental Property”, of the City of Muskegon. This ordinance amendment focuses on sub section (F) (3) which would allow an “Alternative Escrow Option”; in lieu of dwelling fire insurance. The sub-section and associated bullet points (1-7) explain the escrow option for landlords who cannot obtain insurance or opt not to acquire dwelling insurance to repair or demolish a property after a catastrophic fire event. FINANCIAL IMPACT: Relieve the City of Muskegon from bearing the expense to demolish uninsured rental properties that are damaged during a working fire. BUDGET ACTION REQUIRED: N/A STAFF RECOMMENDATION: Staff recommends approving this ordinance amendment as written. Motion by Vice Mayor Spataro, second by Commissioner Turnquist approve the ordinance amendment as written. Second Reading Required. ROLL VOTE: Ayes: Hood, Spataro, Turnquist, Johnson, and Gawron Nays: None MOTION PASSES H. Amendment to the Janitorial Services Contract 2014-2017 Engineering SUMMARY OF REQUEST: Amend the current janitorial services contract with Reliant Professional Cleaning Services to include the cleaning of the filtration plant facilities at an additional cost of $1,189.00 per month, starting September 2015 thru April 2017. FINANCIAL IMPACT: A total of $23, 780 over the life of the contract. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Amend the current contract to include the cleaning of the filtration plant facilities as outlined for a monthly cost of $1,189.00. Motion by Commissioner Turnquist, second by Commissioner Johnson to amend the current contract to include the cleaning of the filtration plant facilities for a monthly cost of $1,189.00. ROLL VOTE: Ayes: Spataro, Turnquist, Johnson, Gawron, and Hood Nays: None MOTION PASSES 2015-58 NEW BUSINESS: A. Designation of Voting Delegates for the Michigan Municipal League Annual Business Meeting City Clerk SUMMARY OF REQUEST: To designate by action of the Commission, one of our officials who will be in attendance at the Convention as an official representative to cast the vote of the municipality at the Annual Meeting; and, if possible, to designate one other official to serve as alternate. FINACIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval. Motion by Commissioner Turnquist, second by Commissioner Johnson to approve Frank Peterson as delegate and Mohammed Al-Shatel as alternate delegate to cast the vote of the municipality aT the Annual Meeting. ROLL VOTE: Ayes: Spataro, Turnquist, Johnson, Gawron, and Hood Nays: None MOTION PASSES PUBLIC PARTICIPATION: Public comments were received. ADJOURNMENT: The City Commission Meeting adjourned at 5:57 p.m. Respectfully submitted, Ann Marie Meisch, MMC City Clerk Commission Meeting Date: August 25, 2015 Date: August 14, 2015 To: Honorable Mayor & City Commission From: Planning & Economic Development Department RE: Youth Basketball League and Open Gym Proposal- Muskegon Public Schools SUMMARY OF REQUEST: The City of Muskegon has contracted with the Muskegon Public Schools (“Schools”) for the management of the Youth Basketball League and Open Gym since 2010. The program has been successful (see attached report) and the Schools would like to manage the program for the 2015- 2016 school year. The Commission is requested to approve the attached proposal and authorize staff to enter into an agreement with the Schools for oversight of the basketball program and the Open Gym program. FINANCIAL IMPACT: The cost for the program is $18,500 (which has not changed since 2010). BUDGET ACTION REQUIRED: Funds are available through the Leisure Services budget. STAFF RECOMMENDATION: To approve the “Youth Basketball League and Open Gym Proposal” and authorize staff to enter into a formal agreement with the Schools. 21st CCLC After School Programs 349 W. Webster Avenue, Muskegon, MI 49440 231-720-2000 Fax 231-720-2050 August 6, 2015 MPS 21st CCLC Youth Basketball League & Open Gym Proposal From: Muskegon Public Schools To: The City of Muskegon Muskegon Public Schools is continually looking for new ways to "reach out and change lives" in our community. Collaborating with the City of Muskegon will help offer safe, positive after school recreational opportunities for the students serviced throughout our communities. Last year's Youth Basketball and Open Gym program established a successful foundation to sustain this collaborative effort. Based on review of expenses our current proposal is as follows: 1.) The MPS 21st CCLC After School Program office located @ Muskegon Hackley Administration Building, would administer the following programs: the Girls & Boys Youth Basketball League and City Open Gym. These programs would run between October 2015 and March 2016. 2.) The City of Muskegon would contribute $18,500 towards this partnership. The funds would be used for the following expenses: program administration and supervision, custodial services, supplies/materials and support personnel (i.e. referee's and statisticians). Program Descriptions: 1.) Boy's and girl's basketball seasons would run consecutively for (6) weeks with the (6th) week being tournament play to conclude each season. The girl’s season would start Fall of 2015 and the boy’s would begin after the conclusion of Christmas break (Winter 2016). 2.) Student registration fee would remain $25 per student to include: reversible game jerseys, individual participation medals, team plaques, and trophies for the tournament champion and runner up teams will be provided. 3.) MPS will accept responsibility for all administrative and supervisory obligations for the Youth Basketball League and Open Gym. Open Gym: 1.) Open gym will be offered for (3) hours to the community the day following the Saturday basketball games of both girls and boys seasons. 2.) MPS will accept responsibility for all administrative and supervisory obligations for the Open Gym program. It is the policy of the Public Schools of the City of Muskegon that no person shall, on the basis of race, color, religion, national origin or ancestry, sex, age, disability, height, weight, or marital status be excluded from participation in, be denied the benefits of, or be subjected to discrimination during any program or activity or in employment. If you feel you have been discriminated against, please contact the Office of the Assistant Superintendent of Human Resources, 349 W. Webster Avenue, Muskegon, MI 49440 (231) 720-2000 Grant Contacts George Sharp 231-720-2061 Assistant Director 21st CCLC gsharp@mpsk12.net Kimberly Leavell 231-720-2557 Director 21st CCLC kleavell@mpsk12.net Muskegon Public Schools looks forward to our partnership for the 2015/2016 academic year. It is the policy of the Public Schools of the City of Muskegon that no person shall, on the basis of race, color, religion, national origin or ancestry, sex, age, disability, height, weight, or marital status be excluded from participation in, be denied the benefits of, or be subjected to discrimination during any program or activity or in employment. If you feel you have been discriminated against, please contact the Office of the Assistant Superintendent of Human Resources, 349 W. Webster Avenue, Muskegon, MI 49440 (231) 720-2000 Commission Meeting Date: August 25, 2015 Date: August 19, 2015 To: Honorable Mayor and City Commissioners From: Finance RE: Certification of MERS Representatives SUMMARY OF REQUEST: The MERS plan document provides that “the governing body for each municipality shall certify the names of two (2) delegates to the Annual Meeting. One delegate shall be a member who is an officer of the municipality appointed by the governing body of the municipality. The other delegate shall be a member who is not an officer of the municipality, elected by the member officer/employees of the municipality.” The City’s employee units previously agreed to a rotating system (based on date of joining MERS) to select one official employee representative. This year the official employee representative attending the MERS conference will be Jan Labrenz (Customer Service Representative II) from the clerical employees’ union group. It is recommended that Derrick Smith (Finance Director) be designated as the City’s employer delegate. FINANCIAL IMPACT: Registration for the MERS conference in Grand Rapids is $175 per person. Additionally, mileage, hotel and related costs will be incurred. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Certification of Derrick Smith and Jan Labrenz to be the City’s officer and employee delegates at the MERS annual meeting in Grand Rapids October 8 - 9. Commission Meeting Date: August 25, 2015 Date: August 17, 2015 To: Honorable Mayor & City Commission From: Planning & Economic Development Department RE: MSI Property- “Agreement of Purchase and Sale” (PA) SUMMARY OF REQUEST: One of the properties desired for the new market-rate housing initiative is the MSI owned property across from the Nelson Neighborhood Park. The property contains nine lots that can be developed for market-rate housing. The agreed upon purchase price is $45,000. FINANCIAL IMPACT: The City will pay the purchase price of $45,000, as well as the Survey, City attorney fees, one-half of any escrow costs, the cost of recording the Warranty Deed and any other cost of closing not required by the Seller in the PA. These funds were budgeted as part of the Market-Rate Housing Initiative Program. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the attached “Agreement of Purchase and Sale” and authorize the Mayor’s signature, as well as authorize staff to proceed with the environmental site assessment and closing on the property, signing the necessary documents. Date: August 25, 2015 To: Honorable Mayor and City Commissioners From: DPW RE: Sale of a Boat Slip (A-08) at Harbour Towne SUMMARY OF REQUEST: Authorize staff to negotiate and execute an agreement with Mr. & Mrs. Hall for the purchase of slip # A-08 at Harbour Towne Marina. FINANCIAL IMPACT: None at this time, the Hall’s made an offer of $35,000 to purchase the slip. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Authorize staff to negotiate and execute a purchase agreement with the Halls should staff feel the terms are favorable. COMMITTEE RECOMMENDATION: TO: Honorable Mayor and City Commissioners FROM: Frank Peterson, City Manager DATE: August 19, 2015 RE: Public Safety Director Employment Agreement SUMMARY OF REQUEST: Approval of the attached Employment Agreement with Public Safety Director Jeffrey Lewis. FINANCIAL IMPACT: $27,000 in FY 2015-16, and approximately $4,000 in subsequent fiscal years. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the Agreement with Jeffrey Lewis and authorize the City Clerk and Mayor to sign. COMMITTEE RECOMMENDATION: EMPLOYMENT AGREEMENT CITY OF MUSKEGON – JEFFREY LEWIS Effective ________________, 2015 This employment agreement is made and entered into by and between the CITY OF MUSKEGON ("CITY") and JEFFREY LEWIS ("DIRECTOR"). Recitals A. The CITY currently employs the services of DIRECTOR as the Director of Public Safety of the City of Muskegon and has established conditions of employment, providing certain benefits and working conditions for said DIRECTOR. B. The CITY wishes to provide incentives for DIRECTOR to maintain his employment as Director of Public Safety of the City of Muskegon through June 30, 2017, and longer if possible, by providing additional benefits as outlined in this Agreement. C. This Agreement supersedes all prior agreements. Agreement NOW THEREFORE, THE CITY AND DIRECTOR AGREE AS FOLLOWS: 1. EMPLOYMENT. CITY employs DIRECTOR as Director of Public Safety to perform the functions and duties specified in the City Charter and ordinances and to perform such other legally permissible and proper duties and functions as the City Manager may, from time to time, assign. DIRECTOR agrees to remain in the employ of the CITY until termination is effected as hereinafter provided, devoting full time to his duties as DIRECTOR. O:\CLERK\Common\Word\Agenda Items for Next Meeting\Lewis Employment Agreement.docx 1 2. SALARY. DIRECTOR’s pay is at Range 1-A, step 11. DIRECTOR shall be entitled to cost of living adjustments approved by the City Commission for department heads on the first of each year, commencing January 1, 2016. 3. PENSION. DIRECTOR shall remain a member of the City of Muskegon Defined Contribution Retirement Plan. A summary of the required CITY and DIRECTOR’s contributions are more fully described in the Plan documents. In exchange for DIRECTOR’S non-participation in social security, effective upon signing this Agreement, City shall contribute $24,000 to Director’s 457 Account with ICMA- RC. Additionally, effective January 1, 2016, the CITY shall contribute an additional seven percent of DIRECTOR’s annual salary into his 457 account (or other similar retirement account), so long as DIRECTOR remains actively employed by the CITY as DIRECTOR: 4. VACATION and PERSONAL TIME. DIRECTOR shall receive 200 hours of vacation time and 32 hours of personal time annually. 5. FRINGE BENEFITS. In addition to the fringe benefits set forth above, and to the extent that this paragraph does not duplicate or conflict with the above paragraphs which shall prevail, the DIRECTOR shall have the same fringe benefits as are available to the highest level department heads employed by the CITY from time to time. 6. TERM. It is understood by both CITY and DIRECTOR that employment may be terminated at the will of either party. 7. MERGER OF NEGOTIATIONS. This agreement constitutes the entire contract of employment between CITY and DIRECTOR. No statement, promise, agreement, or obligation that conflicts with the terms of this agreement shall modify, enlarge, or invalidate this agreement or any provisions hereof. O:\CLERK\Common\Word\Agenda Items for Next Meeting\Lewis Employment Agreement.docx 2 IN WITNESS WHEREOF, the CITY and DIRECTOR have executed this agreement this ______ day of _____________, 2015. CITY OF MUSKEGON By_________________________________ Stephen J. Gawron, Its Mayor and_________________________________ Ann Marie Meisch, Its Clerk DIRECTOR ____________________________________ Jeffrey Lewis O:\CLERK\Common\Word\Agenda Items for Next Meeting\Lewis Employment Agreement.docx 3 TO: Honorable Mayor and City Commissioners FROM: Frank Peterson, City Manager DATE: August 19, 2015 RE: City Manager Employment Agreement SUMMARY OF REQUEST: Approval of the attached Second Amendment to the Employment Agreement with City Manager Frank Peterson. FINANCIAL IMPACT: BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the Agreement with Frank Peterson and authorize the City Clerk and Mayor to sign. COMMITTEE RECOMMENDATION: SECOND AMENDMENT TO EMPLOYMENT AGREEMENT CITY OF MUSKEGON - FRANKLIN PETERSON Amendment effective August 9, 2015 Containing Retroactive Provisions (As approved by the City Commission on __________, 2015) This is an amendment to the Employment Agreement, with an attached Exhibit, and First Amendment to Employment Agreement between the CITY OF MUSKEGON ("CITY") and FRANKLIN PETERSON ("MANAGER") concerning Franklin Peterson’s services as City Manager of the CITY. The Employment Agreement and First Amendment to Employment Agreement are amended in the following particulars: 1. Paragraph 2 (Salary) of the Employment Agreement shall be amended to read as follows: SALARY. Effective August 9, 2015, CITY agrees to pay MANAGER as compensation for services rendered an annual salary of $125,000 per year. MANAGER shall be entitled to cost of living adjustments approved by the City Commission for department heads on the first of each year, commencing January 1, 2016, and a merit adjustment will be considered and, if granted, would be effective July 1 of each year, commencing July 1, 2016. 2. Paragraph 3 (Pension) of the Employment Agreement shall be amended to provide an additional City contribution of 2.5% of Manager’s salary to the ICMARC so long as Manager remains actively employed by City. 3. Paragraph 4(b) of the Memorandum concerning the Muskegon City Manager Compensation Proposal, which is an attachment to the Employment Agreement, (Vacation Time) shall be revised to provide, on an annual basis, twenty five vacation days for 2015 and thirty vacation days per year effective January 1, 2016. Twenty vacation days may be carried over from one calendar year to the next O:\CLERK\COMMON\WORD\AGENDA ITEMS FOR NEXT MEETING\K34635-2ND AMENDMENT INCREASE PAY AN.DOC calendar year. This amendment was authorized by a vote of the City Commission on _____________, 2015, and is determined to be effective August 9, 2015. All previous provisions shall remain in full force and effect, except those that are changed by this amendment. IN WITNESS WHEREOF, the parties execute this amendment to the agreement as of the said effective date. CITY OF MUSKEGON By Stephen J. Gawron, Its Mayor and __________________________ Ann Marie Meisch, Its Clerk MANAGER - _____________________________ Franklin Peterson O:\CLERK\COMMON\WORD\AGENDA ITEMS FOR NEXT MEETING\K34635-2ND AMENDMENT INCREASE PAY AN.DOC Date: August 17th, 2015 To: Honorable Mayor and City Commissioners From: Director of Public Safety Jeffrey Lewis RE: Section - 10-351 (F) (3) Registration of Rental Dwellings Ordinance Amendment SUMMARY OF REQUEST: The Director of Public Safety requests that the City Commission review and authorize the proposed amendment to Chapter 10 Buildings, Article VI, Division 2, subdivision III “Rental Property”, of the City of Muskegon This ordinance amendment focuses on sub-section (F) (3) which would allow an “Alternative Escrow Option”; in lieu of dwelling fire insurance. The sub-section and associated bullet points (1-7) explain the escrow option for landlords who cannot obtain insurance or opt not to acquire dwelling insurance to repair or demolish a property after a catastrophic fire event. FINANCIAL IMPACT: Relieve the City of Muskegon from bearing the expense to demolish uninsured rental properties that are damaged during a working fire. BUDGET ACTION REQUIRED: N/A STAFF RECOMMENDATION: Staff recommends approving this ordinance amendment as written. City of Muskegon Muskegon County, Michigan Ordinance Amendment No. _____ THE CITY OF MUSKEGON HEREBY ORDAINS: Chapter 10 “Buildings and Building Regulations,” Article VI “Property Maintenance Code,” Division 2, Subdivision III. “Rental Property” of the Code of Ordinances of the City of Muskegon is amended as follows: Subdivision III. Rental Property Sec. 10-351. Registration of rental dwellings. (a) Required. All rental dwellings shall be registered with the city. If the owner does not reside within 30 miles of the city, he shall designate a responsible local agent who shall be responsible for operating such dwelling in compliance with the law, including this article. All official notices may be served on the responsible agent, and any notice so served shall be deemed to have been served upon the owner of record. Each owner or responsible local agent shall maintain a current list of the number of occupants of each rental dwelling for which he is responsible. A rental unit certificate of compliance shall not be issued if the registration provisions of this article are not complied with. (b) Deadline for registration; failure to comply. All rental dwellings existing as of the effective date of the ordinance from which this article is derived shall be registered no later than six months after the effective date of this article. The city shall order registration prior to that date for any dwelling cited in a notice required by this article. Failure to comply with such an order is a violation of this article. (c) Registry of new rental dwellings. The owner of a new rental dwelling or of any dwelling newly converted to a rental dwelling shall register the rental dwelling prior to allowing occupancy of any new rental units. (d) Change in register information. The owner of rental dwellings already registered with the city or his responsible local agent shall register within 60 days after any change occurs in register information. A new owner of a registered dwelling shall register the dwelling within 60 days of assuming ownership. (e) Application; contents. Application for registration shall be made in such form and in accordance with such instructions as may be provided by the administrator and shall include: (1) The address of the rental dwelling. (2) The number of dwelling units, the number of rooming units and the number of hotel units in the dwelling. (3) The name, residence address, business address, business phone number and personal phone number of the owner. (4) The name, residence address, business address, business phone number and personal phone number of the manager and responsible local agent designated by the owner. (5) The address where the owner or responsible local agent will accept notices or orders from the city. (6) The driver’s license or state identification number of the owner or responsible local agent and the state in which the license or ID was issued. (f) Dwelling fire insurance. In order to protect the health, safety and welfare of the residents of the city, it is hereby declared that the city shall require dwelling fire insurance for all property owners who let for occupancy premises in the city in the amount and for the purposes provided below. (1) Minimum coverage; use of insurance proceeds. All property owners owning property in the city shall be required to obtain a minimum of $10,000 in dwelling fire insurance. Further, in the event of any fire or loss covered by such insurance, it shall be the obligation of the property owner to use such insurance proceeds to cause the restoration or demolition or other repair of the property in adherence to the city code and all applicable ordinances. (2) Property owners to provide city with insurance information. All property owners shall be required to place their insurance company name, policy number and policy expiration date on their rental unit registration form, or in the alternative, to provide the city with a copy of their actual dwelling fire insurance policy. A registration certificate shall not be issued to any person unless the aforementioned information has been provided. Violation of this section shall result in suspension of a registration certificate. The city shall be informed of any change in policies for a particular rental unit or cancellation of a policy for said property within 10 days of said change or cancellation. (3) Alternative Escrow Option. In lieu of obtaining dwelling fire insurance as outlined in this section, landlords who own ten (10) or more single family dwelling units may put into escrow with the City funds sufficient to cover the cost of potential future fire demolition, as follows: i. For a landlord who owns 10 or more rental homes in the City, a minimum escrow amount of $10,000, plus a one time administrative fee of $100 is required. ii. The funds in escrow can be withdrawn for the sole purpose of demolition or restoration of a home that has been damaged by fire. iii. If, after a fire, the home is declared a dangerous building, and the landlord fails to repair or demolish the home as required, the City may use the escrow funds to perform the demolition, pursuant to the process as outlined in Chapter 10, Article III “Dangerous Buildings” of the City Code. In addition to the cost of demolition, the City shall deduct from the escrow funds all fees and fines associated with the dangerous building proceedings. iv. Landlord must replenish the full escrow amount within 10 business days after withdrawal by the landlord or the City. v. The City shall retain any interest accrued/earned on the funds in escrow to compensate for its administrative costs. vi. The City shall return the escrow funds upon sale of all rental properties or proof of dwelling fire insurance on all properties, as required pursuant to Section (f)(2) above. (g) Inaccurate or incomplete register information. It shall be a violation of this article for an owner or a responsible local agent to provide inaccurate information for the register of rental dwellings or to fail to provide information required by the city under subsection (e) of this section. In those cases in which the owner or responsible local agent is not a natural person, the information required for the register shall be provided for the organization owning the rental dwelling and for the president, general manager or other chief executive officer of the organization. Where more than one natural person has an ownership interest, the required information shall be provided for each owner. (h) Exemption from registration requirement. Dwellings that are not owner-occupied, but are occupied by a grandparent, parent, child or current spouse of the owner are exempt form the rental registration requirements outlined in this section. This exemption is limited to single family residential dwellings. It is the responsibility of the owner asking to be exempted from the rental dwelling registration requirement to provide satisfactory proof to the city of the existence of the familial relationship between owner and resident of the dwelling. (Code 1975, § 4-82; Or. No. 2304, 2-28-12) This ordinance adopted: Ayes: ______________________________________________________________ Nays: _______________________________________________________________ Adoption Date: _________________________ Effective Date: _________________________ First Reading: _________________________ Second Reading: ________________________ CITY OF MUSKEGON By ______________________________ Ann Meisch, MMC City Clerk CERTIFICATE The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon County, Michigan, does hereby certify that the foregoing is a true and complete copy of an ordinance adopted by the City Commission of the City of Muskegon, at a regular meeting of the City Commission on the day of , 2015, at which meeting a quorum was present and remained throughout, and that the original of said ordinance is on file in the records of the City of Muskegon. I further certify that the meeting was conducted, and public notice was given, pursuant to and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as amended, and that minutes were kept and will be or have been made available as required thereby. DATED: , 2015 _______________________________________ Ann Meisch, MMC Clerk, City of Muskegon Publish: Notice of Adoption to be published once within ten (10) days of final adoption. CITY OF MUSKEGON NOTICE OF ADOPTION TO: ALL PERSONS INTERESTED Please take notice that on ___________________, 2015, the City Commission of the City of Muskegon adopted an amendment to Chapter 10 “Buildings and Building Regulations,” Article VI “Property Maintenance Code,” Division 2, Subdivision III. “Rental Property,” Section 10-351 of the Code of Ordinances of the City of Muskegon, whereby the following changes were made: Section (f)(3) was added to provide an alternative of placing funds in an escrow account with the City to be used to demolish the home in the event of fire, in lieu of the requirement to obtain dwelling fire insurance, for those landlords who own ten or more single family rental homes in the City. Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours. This ordinance amendment is effective ten (10) days from the date of this publication. CITY OF MUSKEGON Published: _________________, 2015 By: ______________________________ Ann Meisch, MMC, Its Clerk ------------------------------------------------------------------------------------------------------------ PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE Date: August 25, 2015 To: Honorable Mayor and City Commissioners From: DPW RE: Request for $9,000 from United Way for Day of Caring 2015. SUMMARY OF REQUEST: Authorize staff to grant United Way’s request for $9,000 to purchase and plant landscaping along Seaway Drive as part of their 2015 Day of Caring. Earlier this year, the city received over $9,000 from MDOT for a tree cutting violation along Seaway in the City of Norton Shores and they passed that money to us to do exactly what is being proposed by United Way. FINANCIAL IMPACT: Grant United Way’s request for $9,000 from the major street fund where the MDOT’s money was deposited. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Authorize staff to grant the request by United Way. COMMITTEE RECOMMENDATION:
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