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, April 28, 1998.

ROLL CALL FOR THE REGULAR COMMISSION MEETING

Present: Mayor Fred J. Nielsen, Vice Mayor Clara Shepherd, Commissioners John Aslakson, Jone Wortelboer Benedict, Timothy J. Michalski, Sally A. Pleimling and Scott Sieradzki, City Manager Bryon L. Mazade, City Clerk Gail A. Kundinger and City Attorney Tom Johnson

Reverend Lee Eggerson opened the meeting at 5:30 p.m., with a prayer, after which the members of the City Commission and the members of the public joined in reciting the Pledge of Allegiance to the Flag.

47. HONORS AND AWARDS:

1. Resolution recognizing Gail A. Kundinger

Gail Kundinger was presented with a resolution honoring her for receiving the Clerk of the Year Award for the State of Michigan.

47. PUBLIC HEARINGS:

1. Issuance of Industrial Facilities Tax Exemption Certificate – Federal-Mogul Camshafts (formerly Weyburn-Bartel).

SUMMARY OF REQUEST: Federal-Mogul Camshafts (formerly Weyburn-Bartel), 1839 Sixth Street, Muskegon, Michigan 49441, a manufacturer of camshafts, has requested the issuance of an Industrial Facilities Exemption Certificate under the State’s Industrial Facility Tax Exemption program. Total capital investment for this project is $6,750,000. The project will result in the creation of 40 new employment opportunities. The Weyburn-Bartel Industrial Development District was created on November 25, 1997. The applicant has requested a 9 year certificate on personal property.

FINANCIAL IMPACT: Certain additional property and income taxes generated by the project will be captured by the City. An application fee of $1766.00 has been received.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To hold a public hearing to receive comments on the issuance of the Certificate.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommended approval.

The Public Hearing opened at 5:40 p.m. to hear and consider any comments on Federal-Mogul Camshafts, a manufacturer of camshafts, requesting the issuance of an Industrial Facilities Exemption Certificate under the State’s Industrial Facility Tax Exemption program. Harold Anderson commented in favor.

1. SECOND READING: Ordinance Electric Franchise – Engage Energy US, L.P. CITY MANAGER

SUMMARY OF REQUEST: To consider an electric franchise ordinance for Engage Energy. This will allow Engage Energy to perform local electric business in the City of Muskegon.

FINANCIAL IMPACT: $1,000 application fee.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the franchise ordinance for Engage Energy.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommended approval.

47. CONSENT AGENDA: All items listed under the Consent Agenda have been considered by the City Commission to be routine in nature and will be enacted in one motion. There will be no separate discussion of these items. If discussion of an item is required, it will be removed from the Consent Agenda and be considered separately.

SUMMARY OR REQUEST: To approve the minutes of the Regular Commission Meeting that was held on Tuesday, April 14, 1998.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

SUMMARY OF REQUEST: To transfer location of existing 1997 SDD-SDM with Sunday service from Rite Aid at 389 E. Apple to Rite Aid at 821 E. Apple, and is requesting a new drive up window.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

SUMMARY OF REQUEST: Request to apply for two grants under the Small Community Grant Program. These grants are to add one additional year to our COPS Phase I and COPS Fast Grants which funds community officer positions. The grants are for 20% of the original grant amounts. The original grant amounts were $300,000 for the COPS Phase I and $150,000 for the COPS Fast. As with the original grants we must state our commitment to maintain these positions once the grants have been expended.

FINANCIAL IMPACT: $90,000 in grant funds to be received through the U. S. Department of Justice to assist in funding community officers originally funded under COPS Phase I and COPS Fast for an additional year.

BUDGET ACTION REQUIRED: None. We have already expended the federal portion of each of the original grants and have been paying our match amounts. The original grant application required a commitment to maintain these positions after the grants expire and we would be making that same commitment again.

STAFF RECOMMENDATION: Staff recommends applying for the two Small Community Grant Program Grants through the U. S. Department of Justice.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

1. Jobs Commission Grant Agreement – Cole’s Quality Foods.

SUMMARY OF REQUEST: To approve a grant agreement with the State of Michigan Jobs Commission to accept a grant in the amount of $100,000 for the Cole’s Quality Foods expansion project. These funds will be used for utility re-location.

FINANCIAL IMPACT: $100,000 for utility improvements.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the attached agreement and authorize the Mayor and City Clerk to execute the agreement.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

1. E.C. Training Funds – City/County Agreement.

PLANNING & ECONOMIC DEVELOPMENT (7l)

SUMMARY OF REQUEST: The final element of the Enterprise Community Strategic Vision for Change, "Employment Education and Training Programs", is ready to be implemented. The E. C. Job Training Task Force met over a period of several months and determined that expansion of JTPA should be a priority. The E. C. Task Force agreed and a contract between the City of Muskegon and the Muskegon County Department of Employment and Training has been developed. The City Commission is requested to approve the attached agreement.

FINANCAIL IMPACT: The contract between the City of Muskegon and the Department of Employment and Training is in the amount of $315,873.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the attached contract and authorize the Mayor and Clerk to sign. The amount of the contract is for $315,873. This includes $100,000 for expansion of JTPA Thresholds ($58,000/Muskegon, $42,000/Muskegon Heights), $30,000 for assessments, $160,873 for work skills and remedial education and $25,000 for childcare. There is an additional $5,000 from this fund which will be disbursed directly to the Micro-Enterprise Loan Fund.

COMMITTEE RECOMMENDATION: The E. C. Task Force voted to recommend the approval for the expenditure of Job Training Funds, as outlined in the Job Training Budget (see attached), on October 1, 1997.

2. Sale of Urban Renewal Property.

PLANNING & ECONOMIC DEVELOPMENT (7m)

SUMMARY OF REQUEST: Approval to proceed with the sale of Urban Renewal property at the SE corner of Adams and School to Robert and Carmen Smith of 1047 Marquette Ave., Muskegon. The lot (#61-31-21-205-001) was appraised at $4,500, and the Smiths have submitted a bid of $4,500. There were no other bidders.

FINANCIAL IMPACT: Sale will allow property to be placed back on the City’s tax rolls and will relieve the City from further maintenance. Pursuant to the conditions of sale, the Smiths agree to construct a residence upon this property within 18 months of the date of sale.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Staff recommends the approval of the resolution and authorization for the Mayor and Clerk to sign off on the deed.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

3. Consideration of Bids, Eighth Street between Western & Webster.

ENGINEERING

SUMMARY OF REQUEST: To award the contract of reconstructing Eighth Street between Western & Webster to Jackson-Merkey Contractors, the lowest responsible bidder, with a bid price of $173,676.65.

FINANCIAL IMPACT: The construction cost of $173,676.65 plus related engineering expenses.

BUDGET ACTION REQUIRED: No budget action is required. The total cost of the project will be out of the budgeted amount of $340,000.00 ($225,000.00 CDBG money).

STAFF RECOMMENDATION: To award the contract to Jackson-Merkey Contracrors.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

4. Getty Street Right-of-Way Agreement.

ENGINEERING (7o)

SUMMARY OF REQUEST: To approve the attached draft agreement with Timothy & Nadine Vanderstelt and allow the City Manager and city Attorney to negotiate changes as may be necessary to finalize the agreement. This agreement will allow us to proceed with the Getty Street project prior to the settlement of the disagreement on right-of-way width.

FINANCIAL IMPACT: None at this time, however, there is a potential that we would need to pay the property owner if it is determined that we have insufficient right-of-way.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve entering into an agreement with the Vanderstelts based on the draft agreement and final changes negotiated by the City Manager and the City Attorney.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

5. Aggregates and Highway Maintenance Materials.

SUMMARY OF REQUEST: Award bids to supply limestone chip blend and modified road gravel to Meekhof’s Lakeside Dock Incorporated.

Award bids to supply 38% and 32% calcium chloride to Liquid Dustlayer Incorporated.

Award bids to supply 20AA and 31A bituminous asphalt, and sylvax patching material to Asphalt Paving Incorporated.

Award bid to provide polymer modified anionic asphalt emulsion (HFST emulsion) to Koch Materials Company.

FINANCIAL IMPACT: $69,600 based on 1997 usage at 1998 quotes.

BUDGET ACTION REQUIRED: None; moneys appropriated in several budgets.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

1. Business Registration Program.

SUMMARY OF REQUEST: Adoption of an Ordinance repealing and then restating and amending the Articles in Chapter 5 of the City of Muskegon Code of Ordinances entitled "Business Regulations and Licenses", and, further, repealing Chapter 6 of the Code entitled "Casual Sales".

BUDGET ACTION REQUIRED: None

FINANCIAL IMPACT: Unknown at this time.

STAFF RECOMMENDATION: Approval of the request and adoption of the Business Registration and Regulations Ordinance.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommended postponing action on this item for 90 days to receive input from the City’s Business Community.

1. Lakeshore Trail Grant Amendment.

LEISURE SERVICES (7e)

SUMMARY OF REQUEST: To amend the contract with the DNR for the construction of Phase I of the Lakeshore Trail to delete the cross signal.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approve

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

Motion by Commissioner Sieradzki, second by Commissioner Benedict to amend the contract with the DNR for the construction of Phase I of the Lakeshore Trail to delete the cross signal.

ROLL VOTE: Ayes: Nielsen, Pleimling, Shepherd, Sieradzki, Aslakson, Benedict, Michalski

Nays: None

ADOPTED

2. Playground Equipment Upgrade – Pere Marquette Park.

SUMMARY OF REQUEST: To award a contract to Engan-Tooley-Doyle & Associates to upgrade the playground equipment at Pere Marquette Park to meet current safety guidelines.

FINANCIAL IMPACT: $11,333

BUDGET ACTION REQUIRED: None, funds to come from the Pere Marquette Fund.

STAFF RECOMMENDATION: Approve

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

1. Renaming Harbour Towne Beach Park.

SUMMARY OF REQUEST: To deny the request of Corene Johnston to rename Harbour Towne Beach Park after former mayor, Gustave L. Lundborg.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Deny the request.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommended denial of the request.

Commissioner Sieradzki was excused at 6:04 p.m.

SUMMARY OF REQUEST: To increase the Inner-City recreation Budget to provide more funding for the Small Grant Program.

FINANCIAL IMPACT: $17,200 in 1998 and a total of $35,000 in 1999.

BUDGET ACTION REQUIRED: $17,200 would need to be appropriated.

STAFF RECOMMENDATION: Approve

COMMITTEE RECOMMENDATION: The Leisure Services Board recommends approval.

1. Cole’s Quality Foods/City Agreement.

SUMMARY OF REQUEST: To approve an agreement between the City and Cole’s Quality Foods to implement a Michigan Jobs Commission Grant in the amount of $100,000.

FINANCIAL IMPACT:

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the attached agreement and authorize the Mayor and Clerk to execute it.

COMMITTEE RECOMMENDATION: The Committee of the Whole deferred action until the Regular Commission Meeting on April 27, 1998.

1. Resolution to Support the County Jail Millage.

SUMMARY OF REQUEST: To approve a resolution to support the Muskegon County Jail millage scheduled for election on May 5, 1998.

FINANCIAL IMPACT: Up to 1.45 mills assessed on real and personal property in the City.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the attached resolution.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommended denial of the request.

Commissioner Sieradzki returned to the meeting at 6:55 p.m.

Commissioner Sieradzki expressed his displeasure at the way the City is handling negotiations with the unions. Residency was an issue.

Various comments were heard from the audience.

Commissioner Benedict was excused at 7:36 p.m.

47. CLOSED SESSION: To discuss pending litigation.