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CITY OF MUSKEGON
CITY COMMISSION MEETING
AUGUST 10, 2010
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
CALL TO ORDER:
PRAYER:
PLEDGE OF ALLEGIANCE:
ROLL CALL:
HONORS AND AWARDS:
INTRODUCTIONS/PRESENTATION:
CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. Fluoride System Evaluation Construction Phase. WATER FILTRATION
C. Rescind Bid for Lead Abatement at 605 Jackson. COMMUNITY &
NEIGHBORHOOD SERVICES
D. Certification of MERS Representatives. FINANCE
PUBLIC HEARINGS:
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
A. SECOND READING: Rezoning Request for a Portion of the Property
Located at 721 E. Laketon Avenue. PLANNING & ECONOMIC
DEVELOPMENT
NEW BUSINESS:
A. Muskegon Lake Research Fund. CITY MANAGER
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 Becker, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or TDD:
(231) 724-4172.
Date: August 10, 2010
To: Honorable Mayor and City Commissioners
From: Ann Marie Becker, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve the minutes of the City
Commission Meeting that was held on Tuesday, July 27, 2010.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 27, 2010
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, July 27, 2010.
Mayor Warmington opened the meeting with a prayer from Pastor Duane
Bennett 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 Stephen Gawron,
Commissioners Sue Wierengo, Steve Wisneski, Chris Carter, and Lawrence
Spataro, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk
Ann Marie Becker.
Absent: Commissioner Clara Shepherd (excused)
2010-65 HONORS AND AWARDS:
A. Presentation of Sign – Rev. George M. Bennett Blvd.
Mayor Warmington presented Pastor Duane E. Bennett the official sign which will
be placed above the First Street sign in honor of his father Pastor George M.
Bennett who was a leader in our community.
2010-66 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the July 12th Commission
Worksession Meeting and the July 13th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. City of Muskegon Operations Management Contract: Smith Ryerson
Community Center, Pastor Gregory M. Kirksey Picnic Shelter and Smith
Ryerson Park Grounds. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The Muskegon Recreational Center (MRC), Inc. has
been managing the Smith Ryerson Community Center since July 2006. The
management has been successful, with many area youth (as well as others in
the community) being served. As the current Contract between MRC and the
City concluded July 1, 2010, it is recommended that a new two-year contract
be approved. The new Contract also includes maintenance and operation of
the newly constructed picnic shelter and maintenance of the park grounds.
MRC will also begin contributing 25% of their revenue towards utility costs.
FINANCIAL IMPACT: The Contract specifies that the Manager will receive its
management fee through the revenue generated at the Center.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Contract and authorize the Director
of Community & Economic Development and the City Clerk signatures.
C. Rezoning Request for a Portion of the Property Located at 721 E.
Laketon Avenue. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone a portion of the property at 721 E.
Laketon Ave. from R-1, Single Family Residential district to B-4, General Business
district, by Micheal David. This would make the entire parcel zoned B-4, General
Business District.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their July 15th meeting.
(Requires second reading).
D. CDARS Investment Alternative. FINANCE
SUMMARY OF REQUEST: With interest rates at historic low levels, it is getting quite
difficult to find safe, short-term investments that produce an appreciable yield
for idle city cash. Bank CD’s are one option, but investments over $250,000 are
not covered by FDIC insurance. CDARS is a program that allows institutional
investors to invest larger amounts through one bank and receive FDIC insurance
on the full amount. The program works by breaking larger dollar investments
into smaller insurable pieces that are invested throughout the CDARS network.
State investment laws were amended in 2009 to permit governments to utilize
CDARS.
Financial institutions participating in CDARS are mostly community banks. Our
local community banks have participated in CDARS but are not aggressively
seeking CDARS deposits at this time. The most aggressive CDARS bank in
Michigan is Flagstar bank (Troy, MI).
FINANCIAL IMPACT: The CDARS program offers a safe, insured option to
enhance interest earnings on City funds.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Authorize staff to execute documents necessary for
the City to participate in the CDARS program. The City attorney has reviewed
the documents for compliance with state law.
E. Liquor License Request for Harbour Towne Yacht Club, 3425 Fulton
Street. CITY CLERK
SUMMARY OF REQUEST: The Liquor Control Commission is seeking local
recommendation on a request from Harbour Towne Yacht Club for a New
Outdoor Service (2 Areas) and decrease the size of the existing Outdoor Service
(1 Area) to be held in conjunction with 2010 Club & SDM Licensed Business with
Outdoor Service (1 Area) and Dance Permit located at 3425 Fulton Street,
Muskegon, MI 49441.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
G. Approval of Contractor for Construction of House at 1543 Hoyt.
COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Mossy Oak Builders, 123 N.
8th, Fruitport, for the construction of the new home to be located at 1543 Hoyt
for the cost of $89,300.
This new construction is being financed with Neighborhood Stabilization funds
from the Michigan State Housing Development Authority. After the new
construction is completed, the home will be marketed to any eligible owner
occupied homebuyer with a household income less than 120 percent of the
area median income. The City obtained the original house at 1543 Hoyt with
Neighborhood Stabilization Program funds. The City received nine bids.
FINANCIAL IMPACT: The funding for the project will be taken from the
Neighborhood Stabilization Program funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve for the Community and Neighborhood
Services office to develop a contract with Mossy Oak Builders and direct the
Mayor and Clerk to sign the contract. This is contingent upon CNS receiving the
additional NSP grant funding.
COMMITTEE RECOMMENDATION: None needed, the Citizen’s District Council is
aware of the Neighborhood Stabilization Program.
H. Farmers Market ADA Restroom Renovations. PUBLIC WORKS
SUMMARY OF REQUEST: To approve a proposal from Clifford Buck Construction
to renovate the Farmers Market restrooms to make them ADA compliant for the
price quoted of $21,743 and to authorize staff to enter into a contractual
agreement.
FINANCIAL IMPACT: Project expenditures of $17,897 would come from the
Farmer’s Market Improvement Fund and $3,846 would come from the 2011
Farmer’s Market Operating Budget.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the proposal from Clifford Buck
Construction.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the Consent Agenda as read minus item F.
ROLL VOTE: Ayes: Warmington, Wierengo, Wisneski, Carter, Gawron, and
Spataro
Nays: None
MOTION PASSES
2010-67 ITEM REMOVED FROM THE CONSENT AGENDA:
F. Resolution Revoking the IFT Certificate for Northern Machine Tool.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, the
City of Muskegon requests that the Industrial Facilities Exemption Certificate
issued to Northern Machine Tool, Certificate #2004-570, be revoked due to
failure to make the proposed investment. The business proposed to invest
$450,000 in real property and $250,000 in personal property. However, the
project never commenced and the investments were never made.
FINANCIAL IMPACT: The company will no longer receive the benefits associated
with the certificate.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve and authorize the Mayor and Clerk to
sign the resolution revoking IFT Certificate #2004-570.
Motion by Commissioner Carter, second by Commissioner Wisneski to approve
the resolution revoking the IFT Certificate for Northern Machine Tool.
ROLL VOTE: Ayes: Wierengo, Wisneski, Carter, Gawron, Spataro, and
Warmington
Nays: None
MOTION PASSES
2010-68 PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – AFI
Machining. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, AFI
Machining, 1920 Port City Blvd., has requested the issuance of an Industrial
Facilities Tax Exemption Certificate. The total capital investment will be $335,023
in personal property and will create two new jobs. This qualifies them for a tax
abatement of six years.
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 six years for personal property.
The Public Hearing opened to hear and consider any comments from the
public.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to close the
Public Hearing and approve the request for an Industrial Facilities Exemption
Certificate for AFI Machining as described.
ROLL VOTE: Ayes: Wisneski, Carter, Gawron, Spataro, Warmington, and
Wierengo
Nays: None
MOTION PASSES
2010-69 NEW BUSINESS:
A. Ice Mountain Grant – Ryerson Creek Culvert Replacement. PLANNING
& ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The current tube culvert under Seaway Drive is failing.
The City has the opportunity to coordinate with the West Michigan Shoreline
Development Commission (WMSRDC) to replace the culvert in an
environmentally sensitive way, by providing a fish-passage friendly box culvert
(as opposed to the current tube that goes underground), as well as provide
additional wetland habitat improvements. The project will “daylight” the stream
between Yuba and Seaway Drive, and restore storm water detention and water
quality and habitat functions.
FINANCIAL IMPACT: The total project amount (including construction and
engineering costs, as well as habitat restoration) is $516,181. WMSRDC will
provide $436,930 through the NOAA Great Lakes Habitat Agreement grant
funds. The City will provide up to $40,000 in matching funds, the Ice Mountain
Grant request is for $30,000 and the remaining funds will be sought through other
grant sources.
BUDGET ACTION REQUIRED: In the 2011-12 City budget, up to $40,000 will be
designated through “street funds” for matching funds for the project.
STAFF RECOMMENDATION: To approve submittal of the Ice Mountain Grant in
the amount of $30,000 for the Ryerson Creek Culvert Replacement and
authorize the Mayor and Clerk to sign documents necessary for the grant
submittal and acceptance, if the grant is approved.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
submittal of the Ice Mountain Grant for the Ryerson Creek culvert replacement.
ROLL VOTE: Ayes: Carter, Gawron, Spataro, Warmington, Wierengo, and
Wisneski
Nays: None
MOTION PASSES
B. Building Healthy Communities Grant – Lighting in Clara Shepherd Park.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The County of Muskegon obtained a Building Healthy
Communities Grant for the Nelson Neighborhood in 2008-09. The grant included
two community gardens, improvements to St. Joes Park and lighting in Clara
Shepherd Park. The County partnered with the City to complete the
improvements to the Park. On August 3, 2009, the City Commission approved
paying for the future electrical costs associated with the new lighting. At that
time, it was expected that the grant would cover all costs for installation. The
Commission approved the contract for lighting installation to West Shore Electric
on September 15, 2009, in the amount of $9,740. However, due to weather
conditions and some vandalism on site, the work was not completed until late in
the year and the City did not receive an invoice until January 2010. The
reimbursement request was submitted to the County in February. Meanwhile,
the County had reallocated some of the remaining grant funds at the end of
2009, prior to the City’s submittal for reimbursement (unbeknownst to the City).
They did not leave enough to cover the entire City expenses of $9,740. The City
only received $4,920.95, leaving $4,819.05 which was not covered by grant
funds. I have since had several discussions with County staff and I believe the
most practical step to take is to split the outstanding balance between both of
us ($2,409.53).
FINANCIAL IMPACT: The City will pay $2,409.53 from the General Fund (Parks
Maintenance) towards the new lighting in Clara Shepherd Park.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To authorize staff to pay $2,409.53 from the City’s
General Fund towards the lights in Clara Shepherd Park and accept $2,409.53
from the County for the lights in Clara Shepherd Park.
Motion by Commissioner Carter, second by Commissioner Wierengo to authorize
staff to pay $2,409.53 from the City’s General Fund towards the lights in Clara
Shepherd Park and accept $2,409.53 from the County.
ROLL VOTE: Ayes: Gawron, Spataro, Warmington, Wierengo, Wisneski, and
Carter
Nays: None
MOTION PASSES
C. Approval of Contractor for Lead Abatement and Rehabilitation of CNS
Homes. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the following rehabilitation contracts:
Murphy Bros, 84 N. Bock, Muskegon, for the lead abatement of 605 Jackson in
the amount of $9,200
Murphy Bros, 84 N. Bock, Muskegon, for the rehabilitation of 1080 E. Laketon in
the amount of $34,350
Gray Space, 601 Amity, Muskegon, for the rehabilitation of 2265 Lincoln in the
amount of $50,620
Statewide Abatement, 1720 Creston, Muskegon, for the rehabilitation of 1891
Wood in the amount of $72,000
We are not accepting the bids we received for 1644 Division, 1500 Leahy and
1733 Manz and will rebid these projects.
The lead abatement and rehabilitation is being financed with Neighborhood
Stabilization funds from the Michigan State Housing Development Authority.
After the total rehabilitation is completed, the houses will be marketed to any
eligible owner-occupied homebuyer with a household income less than 120
percent of the area median income.
The City received additional bids. In some instances, the lowest bid is not being
recommended based on the amount of knowledge and experience required
for some projects.
FINANCIAL IMPACT: The funding for the project will be taken from the money
awarded to the City of Muskegon through the Neighborhood Stabilization
Program.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve for the Community and Neighborhood
Services office to develop a contract with these contractors and direct the
Mayor and Clerk to sign the contract. This is contingent upon CNS receiving the
additional NSP grant funding.
COMMITTEE RECOMMENDATION: None required, the Citizen’s District Council is
aware of the next phase of rehabs under the Neighborhood Stabilization
Program.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the contractors for lead abatement and rehabilitation of CNS homes.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, and
Gawron
Nays: None
MOTION PASSES
D. City Charter Amendments – Tax Levy. CITY MANAGER
SUMMARY OF REQUEST: To consider resolutions to place City Charter
amendments to limit the ad valorem tax levy to 10 mills and to authorize an
additional tax levy of 1.0 mills to finance street construction, repairs, and
maintenance.
FINANCIAL IMPACT: The amendments will provide additional funding for city
streets.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: None.
Motion by Commissioner Carter, second by Commissioner Wierengo to approve
the City Charter Amendments as presented.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, and
Gawron
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Various comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:45 p.m.
Respectfully submitted,
Ann Marie Becker, MMC
City Clerk
Date: August 10, 2010
To: Honorable Mayor and City Commission
From: Water Filtration
RE: Fluoride System Evaluation Construction Phase
SUMMARY OF REQUEST:
To authorize staff to enter into agreement with Franklin Holwerda
Company for construction of the fluoridation system overfeed protection
improvements at the Water Filtration Plant.
FINANCIAL IMPACT:
The construction cost is $12,450.00.
BUDGET ACTION REQUIRED:
None. The fluoride system construction cost will be covered by a grant
from the Michigan Department of Community Health – Oral Health
Division.
STAFF RECOMMENDATION:
It is staff’s recommendation the Mayor and City Commission authorize
staff to enter into agreement with Franklin Holwerda Company for the
fluoride system evaluation construction phase at the Water Filtration
Plant at a cost of $12,450.00.
MEMORANDUM
7/28/10
TO: M. AL-SHATEL, DPW DIRECTOR
FROM: B. VENEKLASEN, WATER FILTRATION PLANT SUPV.
RE: FLUORIDATION SYSTEM EVALUATION – CONSTRUCTION
PHASE
PROJECT HISTORY
The 2009 Sanitary Survey conducted by the Michigan Department of Natural
Resources and Environment indicated a need to provide overfeed protection for
the fluoridation system at the Water Filtration Plant.
The City Commission approved an engineering/design contract proposal with
Fishbeck, Thompson, Carr & Huber of Grand Rapids for the evaluation of the
fluoride application system at the Water Filtration Plant on February 9, 2010.
The contract included assisting the City in making a grant application for project
funding from the Michigan Department of Community Health – Oral Health
Program.
GRANT
The MDCH grant application was made and favorably received. It included the
engineering/design cost along with the engineers estimated construction cost for
a total of $20,074.00. The grant award received included all the costs the City
applied for - $20,074.00. Combining the engineering/design cost of $8,249.85
with the construction bid of $12,450.00 and subtracting the MDCH grant; the final
project cost is expected to be $625.85.
BIDDING
The project design approved by MDNRE was competitively bid with two bids
received, as follows:
Franklin Holwerda Company $12,450.00
2509 29th Street SW
Wyoming, Michigan
Pressures & Pipes Inc. $14,288.00
143 W. Sherman Blvd.
Muskegon, MI 49444
Franklin Holwerda Company included an alternate bid for proposed changes to
the project for an additional $7,672.00.
RECOMMENDATION
Both firms have experience performing work at the Water Filtration Plant and
have done a fine job in all circumstances. Franklin Holwerda recently performed
the clearwell valve replacement and magnetic flow meter projects. Based on our
experience and the bid price, it is my suggestion that we recommend the Mayor
and City Commission allow staff to enter into contract with Franklin Holwerda
Company for the Fluoridation System Evaluation Project Construction Phase at a
cost of $12.450.00.
Commission Meeting Date: August 10, 2010
Date: August 2, 2010
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Rescind Bid for Lead Abatement at 605 Jackson
SUMMARY OF REQUEST: On August 27, 2010, the City Commission
approved the awarding of the bid for Lead Abatement at 605 Jackson to
Murphy and Son Construction LLC.
The contractor was at the meeting and knew of the approval by the City
Commission. Prior to the meeting the contractor was specifically asked if he
would have a problem starting the Lead Abatement on Monday, August 2 and
completing it on Friday, August 6. The contractor said he was ready to go.
The CNS office talked to the contractor on Wednesday, advising him he had to
come in to sign a contract that day. He did not show up until Friday, July 30.
That same afternoon his Lead Abatement contractor came in and had
questions that needed to be cleared up. When we did not hear anything by
5pm that day, we decided to rebid the project.
It was imperative we get this completed so our architect could go into the
home and get us drawings for a walk-thru the following week. No one is
allowed on the premises except licensed lead workers during the Lead
Abatement.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To reject the bid from Murphy and Son
Construction LLC and rebid the project.
COMMITTEE RECOMMENDATION: None needed.
Date: August 10, 2010
To: Honorable Mayor and City Commissioners
From: Finance Director
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.”
Each City bargaining unit selects a member to attend the MERS annual meeting. The bargaining units
have agreed to a rotating system (based on date of joining MERS) to select one official employee
representative. This year the employee representative will be Pete Hughes from the Fire union.
FINANCIAL IMPACT: Registration for the MERS conference in Kalamazoo is $185 per
person. Additionally, mileage and lodging costs will be incurred.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Certification of Tim Paul and Pete Hughes to be the City’s
officer and employee delegates at the MERS annual meeting in Kalamazoo September 15 – 17.
COMMITTEE RECOMMENDATION: None.
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Date: August 10, 2010
To: Honorable Mayor and City Commissioners
From: City Manager
RE: Muskegon Lake Research Fund
SUMMARY OF REQUEST: The Muskegon Lake Research Fund Committee
Members are requesting that the City offer an option that customers
purchasing an annual boat launch sticker may choose to give a $2 donation to
the Muskegon Lake Research Fund.
FINANCIAL IMPACT: None.
STAFF RECOMMENDATION: None.
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