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, August 11, 1998.

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

85. PUBLIC HEARINGS:

1. Sidewalk Replacement Program. ENGINEERING

SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special assessment roll for the 1997 Sidewalk Replacement Program and to adopt the resolution confirming the Special Assessment Roll.

FINANCIAL IMPACT: A total of $296,049.08 will be assessed against 353 parcels.

BUDGET ACTION REQUIRED: None at this time.

STAFF RECOMMENDATION: To approve the special assessment roll and adopt the resolution.

The Public Hearing opened at 5:35 p.m. to hear and consider any comments from the public. Mohammed Al-Shatel gave an overview of the item. Comments were heard from Robert Kahl, 2358 Greenwood; Donald Thorsen, 2162 Estes; Barbara Goods, 1904 Philo; Clark Bradfield, 2300 Barclay; Ron Schmock, 2272 Morton; Dean Glore, 1907 Harding; and Diane Rebedew, 2126 LeTarte. They had questions reference the special assessment neither disapprove or in favor. David Medendorp, 1718 Beach; and Commissioner Pleimling representing 2200 Harrison protested the assessment.

ADOPTED

85. UNFINISHED BUSINESS:

1. SECOND READING – Business Registration Ordinance.

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 Registration 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: Approval of the item.

1. Request to be recognized as a non-profit organization by MOKA. CITY CLERK

SUMMARY OF REQUEST: Approval of a resolution recognizing MOKA as a non- profit organization operating in the City of Muskegon.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval of request and adoption of the resolution.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

c. Resolution Regarding Intergovernmental GIS Effort. FINANCE (7d)

SUMMARY OF REQUEST: The City of Muskegon and other area units of government are in the initial stages of developing geographical information systems (GIS). GIS is a computer technology that uses geographic location (property parcel) to systematically organize and relate the disparate information (utilities, assessment data, planning and zoning data, etc.) that is crucial to local government operations. Initial efforts to explore intergovernmental cooperation in the area of GIS indicate that there is support and that the West Michigan Shoreline Regional Development Commission is the logical agency to lead such an effort. The intent of the resolution is to formally request WMSRDC to take on this project and entails no financial commitment from the City.

FINANCIAL IMPACT: None at this time. One of the hoped for outcomes of this effort will be to better identify the costs (and funding sources) for GIS Systems.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval of the resolution.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

4. Supplemental Contribution to MMRMA Member Retention Fund. FINANCE (7e)

SUMMARY OF REQUEST: Authorize staff to make a supplemental payment of $125,000 to the City of Muskegon’s "member retention fund" on deposit with the Michigan Municipal Risk Management Authority (MMRMA). The need for this supplemental payment is outlined in the memo.

FINANCIAL IMPACT: The City’s MMRMA member retention fund is currently in a negative cash position due to the large number of claims filed against the City in recent years and their attendant legal/settlement costs. As a result the City is incurring interest charges of approximately 8% on the negative cash balance. It is prudent for the City to make a supplemental payment at this time to both stop the accrual of high interest charges and to provide cash for extraordinary legal/settlement expenses that are expected to continue for the immediate future.

BUDGET ACTION REQUIRED: Amend General Insurance Fund budget to reflect the proposed payment of $125,000 to MMRMA. There is sufficient money in the General Insurance Fund to make this payment.

STAFF RECOMMENDATION: Approval of the proposed supplemental contribution to the MMRMA member retention fund.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

SUMMARY OF REQUEST: To approve the resolution notifying taxing units and calling a public hearing regarding approval of an amendment to the Brownfield Plan. The amendment is for the inclusion of the Dilesco Corporation for the purposes of their utilizing the Single Business Tax Credit.

FINANCIAL IMPACT: No direct financial impact for the amendment, although the expansion of Dilesco will result in increased taxes for the City and a number of new employment opportunities.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor and Clerk to sign.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

6. Condemnation of land for Shoreline Drive (Teledyne). PLANNING (7h)

SUMMARY OF REQUEST: Approval to initiate eminent domain (condemnation) proceedings against Allegheny-Teledyne Incorporated, to acquire a portion of their Muskegon property for the construction of Shoreline Drive – East. Teledyne has been offered $179,000 for the subject property, which was based on an independent appraisal. The condemnation would constitute a "partial take" of property amounting to approximately 13 acres. The partial take of property includes the land needed for the proposed right-of-way, and a irregularly shaped residual piece of land which would be separated from the remaining Teledyne property by the proposed road. Teledyne has rejected the City’s offer.

FINANCIAL IMPACT: $179,000 plus any jury verdict in excess of this amount, plus legal fees. Transportation Bond monies have been earmarked for these expenditures.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Staff recommends approval of the request.

COMMITTEE RECOMMENDATIONS: The Committee of the Whole recommends approval.

8. Sale of 413 W. Webster. PLANNING (7j)

SUMMARY OF REQUEST: Approval to proceed with the sale of a City-owned residence located at 413 W. Webster to Kallie Phelps and Wesley Spyke for $30,000. The City’s original asking price was $32,250 which reflected the costs incurred to relocate the house and provide a new foundation. The house has been shown numerous times, and no other offers have been forthcoming to date.

FINANCIAL IMPACT: The City would absorb a net loss of $2,250 on the house not including realtor fees of an additional $2,500.

BUDGET ACTION REQUIRED: None

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

COMMITTEE RECOMMENDATIONS: The Committee of the Whole recommends approval.

9. Approval of Minutes. CITY CLERK (7k)

SUMMARY OF REQUEST: Approval of the minutes of the July 28, 1998, regular City Commission Meeting.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval of the minutes.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends approval.

SUMMARY OF REQUEST: As a way of financing the fire barn, Oakview Neighborhood is applying for a bingo license through the State of Michigan. In order for the State to grant the license, the Association has to be considered as a non-profit organization by the local governing body.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval

COMMITTEE RECOMMENDATION: Committee of the Whole recommends approval.

6. Purchase of AMOCO property for the Lakeshore Trail. PLANNING & ECONOMIC DEVELOPMENT (7i)

SUMMARY OF REQUEST: The City Commission approved the purchase price of $450,000 for the CSX property on June 9, 1998. Amoco has since sent environmental information. Amoco is asking the City to sign a Real Estate Contract and also a Release and Right-of-Entry document. The Release and Right-of-Entry allows Amoco to have access to the property to perform environmental assessment, monitoring and remediation measures to address existing hydrocarbon contamination on the site. It also releases Amoco from liability for any contamination occurring after the City’s purchase of the property. Amoco is asking the City to sign both agreements in order for the sale to be completed.

FINANCIAL IMPACT: CSX is asking $450,000 for the two parcels of land. The property will be purchased with funds received from the sale of the Chase Hammond Golf Course.

BUDGET ACTION REQUIRED: None at this time.

STAFF RECOMMENDATION: Approval of the Real Estate Contract and the Release and Right-of-Entry document and for the Mayor and Clerk to sign both documents.

COMMITTEE RECOMMENDATION: The Committee of the Whole recommends this item be postponed for two weeks.

1. Purchase of CSX Property for the Lakeshore Trail. PLANNING & ECONOMIC DEVELOPMENT (7g)

SUMMARY OF REQUEST: The City Commission approved the purchase price of $150,000 for the CSX property on March 23, 1998. CSX has since prepared a Purchase Sale Agreement for the property. CSX is asking the City to sign the agreement in order for the sale to be completed.

FINANCIAL IMPACT: CSX is asking $150,000 for the two parcels of land. The cost for parcel #1 will come from money obtained by the sale of the Chase Hammond Golf Course when that sale has been completed. The cost for Parcel #2 may be offset at a later date by reselling parcel #2 to a third party who has already indicated interest in the property.

BUDGET ACTION REQUIRED: None at this time.

STAF RECOMMENDATION: Approval of the Purchase Sale Agreement and for the Mayor and Clerk to sign it, subject to approval by City Attorney, and subject to the completion of a Phase I Environmental Assessment on the site.

ADJOURNMENT: The Regular Commission Meeting was adjourned at 6:37 p.m.

Respectfully submitted,