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 April 27, 1999.

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

36. HONORS AND AWARDS:

1. Resolution requesting observation of April 30, 1999, as Arbor Day.

COMMUNITY RELATIONS COMMITTEE

SUMMARY OF REQUEST: A resolution was requested to observe April 30, 1999 as Arbor Day. Presentation of the resolution will take place at Hackley Park on Friday, April 30 at 9:00 a.m.

There will be approximately 15 students from Steele Middle School and the family of Edward Stewart. Mr. Stewart was a former Commissioner and Mayor. A tree was once planted in Hackley Park in his honor and was lost in the storm last May. His family is replacing this tree.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval

COMMITTEE RECOMMENDATION: The Community Relations Committee was not presented with this item and the next meeting of that group does not take place until after the date the resolution is needed. Committee of the Whole took no action on this item.

2. Resolution requesting observation of May 2-8, 1999, as Arson Awareness Week.

COMMUNITY RELATIONS COMMITTEE

SUMMARY OF REQUEST: A resolution was requested to observe May 2-8, 1999 as Arson Awareness Week.

This resolution will be presented to a representative from our Muskegon Fire Department.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval

COMMITTEE RECOMMENDATION: The Committee of the Whole approved this request at their meeting on April 12, 1999.

Commissioner Pleimling read the resolution aloud and presented it to Chief Simpson and Fire Marshall Grabinski.

3. Resolution requesting observation of May 6, 1999, as the National Day of Prayer.

COMMUNITY RELATIONS COMMITTEE

SUMMARY OF REQUEST: A resolution was requested to observe May 6, 1999 as the National Day of Prayer.

This resolution will be read aloud only, as there is no individual who will be accepting this proclamation.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval

COMMITTEE RECOMMENDATION: THE Committee of the Whole approved this request at their meeting on April 12, 1999.

Mayor Nielsen read the resolution aloud.

4. Resolution requesting recognition of the Muskegon Big Reds basketball team and cheerleaders for winning the 1999 Regional Title.

COMMUNITY RELATIONS COMMITTEE

SUMMARY OF REQUEST: A resolution was requested to recognize the Muskegon Big Reds basketball team and cheerleaders for winning the 1999 Regional title.

This resolution will be presented to Coach Art Duren, the team and cheerleaders.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval

COMMITTEE RECOMMENDATION: The Committee of the Whole approved this request at their meeting on April 12, 1999.

Vice Mayor Shepherd read the resolution aloud. Vice Mayor Shepherd and Commissioner Aslakson presented a resolution to each player, cheerleader and coach.

5. Resolution requesting recognition of the late Neil Rosen for his contributions to our community.

SUMMARY OF REQUEST: A resolution was requested to recognize the late Neil Rosen for his contributions to our community.

COMMITTEE RECOMMENDATION: The Community Relations Committee approved this request at their meeting on March 1, 1999. (This was not scheduled sooner due to Mrs. Rosen being out of town. Further, back up material was provided on April 1, 1999 for the completion of the resolution.)

37. CONSENT AGENDA: All items listed under the Consent Agenda have been considered by City Commission, at their Monday work session, 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.

1. Approval of Minutes.

CITY CLERK

SUMMARY OF REQUEST: To approve the minutes of the Regular Commission Meeting that was held on Tuesday, April 13, 1999.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval of the minutes.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

2. Concurrence with Housing Board of Appeals Findings and Order for 447 McLaughlin (rear house).

NEIGHBORHOOD AND CONSTRUCTION SERVICES

SUMMARY OF REQUEST: This is to request City Commission concurrence with the findings of the Housing Board of Appeals that the structure located at 447 McLaughlin is unsafe, substandard and a public nuisance and that it be demolished within thirty (30) days.

It is further requested that administration be directed to obtain bids for the demolition of the structure and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder.

FINANCIAL IMPACT: The cost of demolition will be paid with budgeted CDBG funds.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: A dangerous building inspection was conducted in January of 1999 following a referral from the housing inspector working the case. The order to repair did not result in any improvements to the structure; therefore, the case was referred to the Housing Board of Appeals on March 4, 1998. No one appeared at the meeting to contest the department’s recommendation that the structure be demolished and there has been no application for a building permit.

The estimated cost of bringing the property into compliance with City codes is $19,999 - $23,000. Property taxes for 1997 and 1998 are delinquent.

Attached are copies of the minutes of the March 4, 1999 meeting of the Housing Board of Appeals, the findings of fact and order of the Board dated March 8, 1999 and the findings from a January 4, 1999 inspection of the property.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

3. Concurrence with Housing Board of Appeals Findings and Order for 492 E. Isabella.

NEIGHBORHOOD AND CONSTRUCTION SERVICES

SUMMARY OF REQUEST: This is to request City Commission concurrence with the findings of the Housing Board of Appeals that the structure located at 492 E. Isabella is unsafe, substandard and a public nuisance and that it be demolished within thirty (30) days.

It is further requested that administration be directed to obtain bids for the demolition of the structure and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder.

FINANCIAL IMPACT: The cost of demolition will be paid with budgeted CDBG funds.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: A dangerous building inspection was conducted in November of 1998 following receipt of a complaint. The order to repair did not result in any improvements to the structure; therefore, the case was referred to the Housing Board of Appeals on March 4, 1998. No one appeared at the meeting to contest the department’s recommendation that the structure be demolished and there has been no application for a building permit.

The estimated cost of bringing the property into compliance with City codes is $8,000 - $12,000. Property taxes for 1995, 1996, 1997, and 1998 are delinquent.

Attached are copies of the minutes of the March 4, 1999 meeting of the Housing Board of Appeals, the findings of fact and order of the Board dated March 8, 1999 and the findings from a November 30, 1998 inspection of the property.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

4. Queen’s Cup Request.

LEISURE SERVICES

SUMMARY OF REQUEST: The Yacht Club is requesting a special Liquor License for June 26^th to host an event for the Queen’s Cup at Great Lakes Marina. Because there is already a license for the Summer Celebration that night, the Commission needs to approve this variance to the Special Events Policy.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approve

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

5. Consideration of Bids – 1999 Sidewalk Program.

ENGINEERING

SUMMARY OF REQUEST: To authorize a change order to the 1998 Sidewalk Program contract in the amount of $585,675.00. This additional work is to perform the necessary sidewalk replacement within the 1999 Sidewalk Program (Nims Area).

FINANCIAL IMPACT: The Construction cost of $585,675 plus an estimated $59,000 of related engineering expenses.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Authorize The change order to 1998 sidewalk program to include the 1999 program

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

6. Consideration of Bids – Boyle and Bluffton between Sampson and Larkin.

ENGINEERING

SUMMARY OF REQUEST: The contract to construct Boyle & Bluffton between Sampson and Larkin be awarded to Jackson Merkey. Jackson Merkey was the lowest responsible bidder with a bid price of $50,890.00.

FINANCIAL IMPACT: The construction cost of $50,890.00 plus an estimated $11,000 of related engineering expenses.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Award the contract to Jackson Merkey.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

7. Command Unit Contract Agreement – TA.

ASSISTANT CITY MANAGER

SUMMARY OF REQUEST: To approve a three-year contract with the Command Unit for the period 1998 to 2000. Significant changes to the contract are as follows:

Wages: 3.25% each year (1998, 1999 and 2000)

Pension Multiplier: Changed from 2.3% to 2.5%

Longevity: Increased to 2%, 4%, 6%, 8% and 10% after 5, 10, 15, 20 and 25 years of service respectively.

FINANCIAL IMPACT: Total financial package is approximately 14% of payroll.

BUDGET ACTION REQUIRED: None at this time.

STAFF RECOMMENDATION: To approve a three-year contract with the Command Union covering tentative agreements reached with the unit.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

8. Pension Ordinance Change resulting from contract negotiations with the Command Unit.

ASSISTANT CITY MANAGER

SUMMARY OF REQUEST: To approve the attached pension ordinance resulting from negotiations (which was based on the fact that had we arbitrated the issue, they most likely would have been awarded a 2.5 multiplier since both the Patrol and Firefighters Units had received 2.5% pension multiplier through recent 312 Arbitration awards) with the Command Unit. The pension multiplier is changed from 2.3% to 2.5%.

FINANCIAL IMPACT: First year = $41,455.

BUDGET ACTION REQUIRED: None at this time.

STAFF RECOMMENDATION: To approve the attached pension ordinance.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

9. Sale of Urban Renewal Property on Roberts Street.

PLANNING & ECONOMIC DEVELOPMENT

SUMMARY OF REQUEST: Approval of a resolution to sell a City-owned, urban renewal parcel on Roberts St., between Marcoux and Lawrence, to Paul Oakes, Jr. of 1210 Lawrence for him to construct a single-family, owner-occupied home. Mr. Oakes submitted the sole bid of $4,000 for the property.

FINANCIAL IMPACT: The sale will allow this 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, Mr. Oakes agrees to construct a residence upon this property within 18 months of the date of sale, and also agrees to comply with building restrictions set by the Land Reutilization Committee.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Staff recommends the approval of the attached resolution and authorization for the mayor and clerk to sign off on the deed.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

10. Sale of City-Owned Vacant Lot on Allen.

PLANNING & ECONOMIC DEVELOPMENT

SUMMARY OF REQUEST: Approval of resolution to sell a city-owned vacant lot located at the corner of Allen and Scott to Lavern Tibbitts of 534 Allen for $100. Subject lot is adjacent to Mr. Tibbitts’ current property and is not buildable under the City’s zoning ordinance. There are no other properties contiguous with the subject property. Mr. Tibbitts has already made a deposit (the full cost of $100) to secure subject property.

FINANCIAL IMPACT: Sale of the property will relieve the City of further maintenance costs, and will allow the property to be placed on the tax roll.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the sale of parcel 61-31-20-460-022 and to authorize the Mayor and City Clerk to sign the attached resolution.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

11. Petition to Rename a Portion of a Public Street.

PLANNING & ECONOMIC DEVELOPMENT (7m)

SUMMARY OF REQUEST: Request to rename Washington Ave. between Sanford and Peck to Oosterbaan Ave.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: After a public hearing on the matter, the Planning Commission recommends approval of the request conditioned upon Central Dispatch approval.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

12. Rezoning.

PLANNING & ECONOMIC DEVELOPMENT (7n)

SUMMARY OF REQUEST: Request to rezone business properties on the Southeast corner of Marquette and Quarterline from B-1, neighborhood business to B-2, convenience and comparison shopping.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: The Planning Commission and staff recommend approval of the rezoning to make existing businesses conforming and to permit more intense business development associated with two colleges in close proximity.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

13. First Quarter 1999 Budget Reforecast.

SUMMARY OF REQUEST: At this time staff is transmitting the First Quarter 1999 Budget Reforecast which outlines several proposed changes to the original budget that have come about as result of changes in policy priorities, labor contracts, updated information, or other factors. For the next meeting, an action item will be placed on the agenda for adoption of the proposed first quarter budget reforecast together with any additional changes deemed necessary by Commissioners.

FINANCIAL IMPACT: The First quarter 1999 Budget Reforecast reflects the following changes for the General Fund budget:

• Revenues are up $454,924 due primarily to the new state shared revenue formula and growth in the city income tax;
• Expenditures are up $470,045 due to higher labor costs and to the fact that thermal imaging equipment purchased for area fire departments in 1998 was not paid for until 1999.
• Overall the projected year-end 1999 fund balance is $104,519 short of the targeted balance of 10% of prior year expenditures.

STAFF RECOMMENDATION: The City Commission should review the Reforecast to ensure it reflects their policy initiatives. At the next City Commission meeting, staff will request formal approval of the Reforecast and related budget amendments.

COMMITTEE RECOMMENDATION: No action required by the Committee of the Whole.

1. Purchase of Domestic Meters from Sensus Meter Company.

DEPARTMENT OF PUBLIC WORKS (7q)

SUMMARY OF REQUEST: Approval of pricing to purchase new water meters and repair parts for the existing water meters of the City of Muskegon’s water system. Sensus is the standard meter that is currently installed for domestic use in the City. Purchase is made directly from Sensus Meter Co.

FINANCIAL IMPACT: Approximately $60,000 for new meters and parts for repairing existing meters each year.

BUDGET ACTION REQUIRED: None. This is included in the annual budget.

STAFF RECOMMENDATION: Staff recommends approval of meter and part purchase from Sensus Meter Company.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

2. Communication Equipment Purchases.

DEPARTMENT OF PUBLIC WORKS (7r)

SUMMARY OF REQUEST: Approval to purchase six portable radios for Fire/Police and six for DPW at $587.23 each (Motorola model HT750), twelve mobile radios for DPW at $607.21 each (Motorola model GM300), and 5 mobile radios for Police at $568.40 each (Motorola model M1225) from Tele-Rad Inc.

FINANCIAL IMPACT: Total cost is $17,175.28 for all units.

BUDGET ACTION REQUIRED: None, $20,400.00 budgeted for these purchases.

STAFF RECOMMENDATION: Approve purchase of twelve portable radios, and seventeen mobile radios from Tele-Rad Inc. for $17,175.28.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

3. Equipment Purchases.

DEPARTMENT OF PUBLIC WORKS (7s)

SUMMARY OF REQUEST: Approval to purchase one plow truck from Woodland IHC for $45,984.33 (low bid price held from last year), one 100kw and one 11kw generator from StandBy Power Inc. for $20,787.00 and $7,329.00, and one beach tractor from West Michigan Power for $33,976.00.

FINANCIAL IMPACT: All purchases are budgeted for in 1999. Grand total of purchases is $108,076.33.

BUDGET ACTION REQUIRED: None, all items below budget.

STAFF RECOMMENDATION: Approval of purchase of one plow truck from Woodland IHC for $45,984.33, one 100kw generator for $20,787.00 and one 11kw generator for $7,329.00 from StandBy Power Inc. and one beach tractor from west Michigan Power for $33,976.00.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

4. Liquor License Request – 413-415 W. Western.

CITY CLERK (7t)

SUMMARY OF REQUEST: The Liquor Control Commission seeks local recommendation on a request from Ashley Chandler, LTD. And Pkt. Twelve, Inc. for a new additional bar permit to be held in conjunction with 1998 Class C-SDM licensed business with dance-entertainment permit, two bars and two direct connections.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval of the request.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

5. Liquor License Request – 1062 W. Laketon.

CITY CLERK (7u)

SUMMARY OF REQUEST: The Liquor Control Commission seeks local recommendation on a request from Sombrero’s L.L.C. for a new 12 month Class C resort license with food permit.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval of the request.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

6. Annual Taxicab License Renewal.

SUMMARY OF REQUEST: This request is from Thomas Wakefield, owner of Wakefield Leasing, whose office is located at 770 W. Sherman Blvd., Muskegon, MI. Mr. Wakefield is requesting approval of a license to operate 13 taxicabs for both Port City Cab Company and Yellow Cab Company. The Muskegon Police Department has inspected the taxicabs and approves this request.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Approval of the request.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval.

1. Petition to Rename the Public Street into Bluffton Bay Estates.

PLANNING & ECONOMIC DEVELOPMENT (7k)

SUMMARY OF REQUEST: To change the name for a portion of Millard Ave. between Lakeshore Drive and the public street entering Bluffton Bay Estates. The new street name would be Lake Dunes Drive.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: After a second public hearing on the matter, the Planning Commission recommends denial of the request because of the historic significance of Millard Street.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval of the Planning Commission’s recommendation for denial. (Vote: 4-ayes; 2-nays; 1-abstain)

Motion by Commissioner Benedict, second by Commissioner Pleimling to concur with the Planning Commission to deny renaming of Millard to Lake Dunes Drive.

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

Nays: Michalski, Nielsen

ADOPTED

2. Petition to Rename a Portion of a Public Street.

PLANNING & ECONOMIC DEVELOPMENT (7l)

SUMMARY OF REQUEST: Request to rename Isabella Ave. between Sanford and Peck to Morrall Ave.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: After a public hearing on the matter, the Planning Commission recommends approval of the request conditioned upon Central Dispatch approval.

COMMITTEE RECOMMENDATION: Committee of the Whole recommended approval. (Vote 6-1)

Motion by Commissioner Benedict, second by Commissioner Aslakson to rename Isabella Avenue between Sanford and Peck to Morrall Avenue.

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

Nays: Nielsen, Shepherd

ADOPTED

3. HMO Renewal.

SUMMARY OF REQUEST: The City has received its 1999-2000-renewal quotation for employee healthcare benefits under the Physicians Health Plan (PHP) HMO option. This program is the healthcare coverage choice for about 85% of the City’s active full-time employees. The table below shows the recent history of monthly and annual PHP rates:

FINANCIAL IMPACT: The proposed 1999-2000 rate ($392.34/mo.) represents an 8% increase over the prior year rate ($363.28/mo.). The total cost of this increase to the City is $88,226, or about $348 per participating employee per year. PHP has suggested that the rate increase could be contained to 3% if the City increases the prescription drug co-pay from the current $5.00 to $10.00. If this is done, the increased cost to the City would be $33.092, or about $130 per participating employee per year.

BUDGET ACTION REQUIRED: No budget action is required if the staff recommendation to renew at the 410.00 RX co-pay is approved (see below). If the Commission instead elects to renew at the current $5.00 RX co-pay, budget adjustments will be required to accommodate the additional cost.

STAFF RECOMMENDATION: Staff recommends renewing the contract with PHP and increasing the Rx co-pay from $5.00 to $10.00. This is an excellent benefit and employees would still have the choice of lower Rx co-pay by selecting the City’s self-insured TPA plan. Additionally, the PHP renewal includes an option for employees to purchase larger supplies of maintenance prescriptions via mail order thus lowering the frequency of co-pays.

COMMITTEE RECOMMENDATION: Committee of the Whole referred this item to the April 27, 1999, meeting without a recommendation.

Commissioners were updated on the standing of the cross lake Ferry, Muskegon Motel, front yard parking, Fisherman’s Landing, and Port Authority. There will be a meeting at the Train Depot on April 29^th at 7:00 p.m. regarding filling in a portion of Lake Michigan.

Various comments were heard from the public.