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City of Muskegon City commission meeting April 9, 2002 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 5:30pm, Tuesday April 9, 2002.
Mayor Warmington opened the meeting with a prayer from Pastor Paul Erban of the Olivet Evangelical Free Church, after which members of the City Commission and members of the public joined in reciting the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Warmington; Vice-Mayor Karen Buie; Commissioners Stephen Gawron, William Larson, Robert Schweifler, Clara Shepherd and Lawrence Spataro; City Manager Bryon Mazade; City Attorney Tom Johnson and City Clerk Gail Kundinger.
2002-44 HONORS AND AWARDS
a. Resolution recognizing Volunteer Week. COMMUNITY RELATIONS COMMITTEE
SUMMARY OF REQUEST: To adopt a resolution recognizing the week of April 21, 2002 as Volunteer Week.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To adopt the resolution proclaiming the week of April 21, 2002 as Volunteer Week.
Commissioner Lawrence Spataro presented the Resolution to Volunteer Martha Bottomly.
b. Resolution recognizing National Telecommunicator Week. COMMUNITY RELATIONS COMMITTEE
SUMMARY OF REQUEST: to adopt a resolution in recognition of National Telecommunicator Week (April 14th through April 20th, 2002), and honor the telecommunicators and dispatch supervisors at Muskegon Central Dispatch.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To adopt the resolution.
Mayor Stephen Warmington presented the Resolution to Dawn Adam’s, Executive Director from Muskegon Central Dispatch.
2002-45 CONSENT AGENDA:
a. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Special Commission Meeting that was held on Monday, March 4, 2002, and the Regular Commission meeting that was held on Tuesday, March 26, 2002.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
b. Community Relations Committee Recommendations. COMMUNITY RELATIONS COMMITTEE
SUMMARY OF REQUEST: To concur with the recommendations from the Community Relations Committee regarding the following:
Board of Review - Removal of William Brookshire
Appointment of Don Haas to filled unexpired term (1/31/03)
Historic District Commission - Appointment of Tom Russo term expires 1/31/04
Hospital Finance Authority – Change the number of Citizen appointments to five(5) as spelled out in Articles of Incorporation.
Adopt a resolution honoring the 1st anniversary of Rev. Calvin McDaniel at Jackson Hill Baptist Church to be presented at the Church on May 26, 2002.
Adopt a resolution creating a Public Relations Committee for the City of Muskegon.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the recommendations from Community Relation Committee.
COMMITTEE RECOMMENDATION: Approve the recommendations
c. Second Reading Groundwater Ordinance Amendment (Admiral). PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve an amendment to the City Groundwater Ordinance to include properties that have been identified as “affected” premises as defined in the Groundwater Ordinance. An “affected” premises shall mean a parcel of property any part of which is located within an appendix map made part of this ordinance, as originally enacted or amended, which map shows the parcel to have contaminated groundwater under any part of the parcel. Mr. Dennis Lemmen of Admiral Petroleum, property owner of this “affected” premise, was also notified by mail of the amendment herein.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the amendment.
COMMITTEE RECOMMENDATION: None
d. Second Reading Groundwater Ordinance Amendment (West Michigan Dock & Market) PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve an amendment to the city Groundwater Ordinance to include properties that have been identified as “affected” premises as defined in the Groundwater Ordinance. An “affected” premises shall mean a parcel of property any part of which is located within an appendix map made part of this ordinance, as originally enacted or amended, which map shows the parcel to have contaminated groundwater under any part of the parcel.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the amendment.
COMMITTEE RECOMMENDATION: None
e. Second Reading Amendment to PILOT Ordinance. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the ordinance amendment to clarify the definition of “elderly persons” to be the same definition as the Michigan State Housing Development Authority (“Authority”) definition. MSHDA interprets “elderly persons” as being 55-years-of-age or older. The former City interpretation was 62-years-of-age or older.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Ordinance amending Ordinance No. 757 and authorize the Clerk to sign.
COMMITTEE RECOMMENDATION:
g. Budgeted Vehicle Purchases. DPW
SUMMARY OF REQUEST: Approval to purchase vehicle replacements for 2002: 1, ¾ ton pick-up; 1, ¾ ton 4X4 pick-up; and 6 mini pick-up trucks.
FINANCIAL IMPACT: Total Cost $124,991.24 for all units. $130,000 is budgeted for these purchases.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve purchase of budgeted replacements for a total cost of $124,991.24 using the Michigan State Purchasing Contract.
h. 2002 Water Treatment Chemical Bids. FILTRATION PLANT
SUMMARY OF REQUEST: Recommend endorsement of lowest responsible bidders to supply aluminum sulfate, sodium hypochlorite, and fluoride for the water filtration plant.
FINANCIAL IMPACT: Annual cost of $70,786.00 (based on average annual water pumped to mains).
BUDGET ACTION REQUIRED: None at this time. These chemicals are budgeted annually.
STAFF RECOMMENDATION: Staff recommends the Mayor and City Commissioners endorse the low bids received and the contract renewal and enter into contracts with General Chemical, Alexander Chemical, and Lucier Chemical for aluminum sulfate, sodium hypochlorite, and fluoride respectively.
j. Consideration of Bids, Washington, Franklin to Division. ENGINEERING
SUMMARY OF REQUEST: The Washington Street contract (H-1538) be awarded to Jackson Merkey Contractors out of Muskegon since they were the lowest (see bid tabulation) responsible bidder with a bid price of $447,701.70.
FINANCIAL IMPACT: The construction cost of $447,701.70 plus associated engineering cost which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Award the contract to Jackson Merkey
Contractors.
COMMITTEE RECOMMENDATION:
k. Transmittal of 2001 Comprehensive Annual Financial Report. FINANCE
SUMMARY OF REQUEST: The City’s 2001 Comprehensive Annual Financial Report (CAFR) has previously been distributed to City Commissioners in accordance with state law.
FINANCIAL IMPACT: None. The CAFR report summarizes the City’s financial activities for 2001 and includes the independent auditor’s unqualified opinion on the City’s financial statements.
BUGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Acceptance of the 2001 CAFR.
COMMITTEE RECOMMENDATION: There is no committee recommendation at this time.
l. Recognizing The Greater Muskegon Service League as a Non-Profit Organization.
SUMMARY OF REQUEST: To adopt the resolution recognizing The Greater Muskegon Service League as a non-profit organization operating in the city for the purpose of obtaining a charitable gaming license. They want to hold a raffle to raise funds so they may give out grants in our community.
STAFF RECOMMENDATION: To adopt the resolution recognizing The Greater Muskegon Service League as a non-profit organization operating in the city.
Motion by Vice-Mayor Buie, second by Commissioner Larson to approve the Consent Agenda except for items i and f.
ROLL VOTE: Ayes: Gawron, Larson, Schweifler, Shepherd, Spataro, Warmington, Buie.
Nays: None
MOTION PASSED
2002-46 ITEMS REMOVED FROM CONSENT AGENDA:
i. Consideration of Bids, Sherin Street, Lakeshore to Miner. ENGINEERING
SUMMARY OF REQUEST: The Sherin Street Contract (H-1522) be awarded to Wadel Stabilization Inc, out of Hart since they were the lowest (see bid tabulation) responsible bidder with a bid price of $100,081.22.
FINANCIAL IMPACT: The construction cost of $100,081.22 plus associated engineering cost which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Award the contract to Wadel Stabilization Inc.
COMMITTEE RECOMMENDATION:
Motion by Commissioner Larson, second by Commissioner Schweifler to award the contract to the second lowest bidder, Felco for $101,811.60.
ROLL VOTE: Ayes: Larson, Schweifler, Shepherd, Spataro, Warmington, Buie, Gawron.
Nays: None
MOTION PASSED
f. Traffic Department Materials and Services 2002. DPW
SUMMARY OF REQUEST: Contract with the Muskegon County Road Commission for the joint purchase of various Traffic Department materials and services. We have bid out these items with MCRC for the past thirteen years. By bidding together with MCRC and other municipalities we are able to get better unit prices because of larger quantity purchases.
FINANCIAL IMPACT: Sign materials and services to be jointly bid:
Sign blanks $2,000.00 approx.
Sign posts $3,000.00 approx.
Sign sheeting $5,100.00 approx.
Centerline painting ` $11,000.00 approx.
BUDGET ACTION REQUIRED: None, this item is requested each year in the appropriate Highway budgets.
STAFF RECOMMENDATION: Approve the continued joint purchasing with the Muskegon County Road Commission for sign materials and services.
Motion by Commissioner Schweifler, second by Commissioner Larson to approve the continued joint purchasing with the Muskegon County Road Commission for sign materials and services.
ROLL VOTE: Ayes: Schweifler, Shepherd, Spataro, Warmington, Buie, Gawron, Larson.
Nays: None
MOTION PASSED
2002-47 PUBLIC HEARINGS:
a. Create Special Assessment District For Harvey, Keating to South End. ENGINEERING
SUMMARY OF REQUEST: To hold a public hearing on the proposed special assessment of the Harvey Street, Keating to S. End, and to create the special assessment district and appoint two City Commissioners to the Board of Assessors if it is determined to proceed with the project.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To create the special assessment and assign two City Commissioners to the Board of Assessors by adopting the resolution.
COMMITTEE RECOMMENDATION:
The public hearing opened at 6:03pm to hear and consider any comments from the public. No comments were heard from the public.
Motion by Commissioner Spataro, second by Vice-Mayor Buie to close the public hearing at 6:06pm and to approve to create the special assessment and assign two City Commissioners to the Board of Assessors by adopting the resolution.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Buie, Gawron, Larson, Schweifler.
Nays: None
MOTION PASSED
b. Confirm the Special Assessment Roll for Laketon, Peck to Wood Street. ENGINEERING
SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special assessment roll for Laketon Ave., Peck to Wood, and to adopt the resolution confirming the special assessment roll.
FIANCIAL IMPACT: A total of $27,842.57 would be spread against the twelve (12) parcels abutting the project.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the special assessment roll and adopt the resolution.
COMMITTEE RECOMMENDATION:
The public hearing opened at 6:08pm to hear and consider any comments from the public. No comments were heard from the public.
Motion by Commissioner Schweifler, second by Commissioner Shepherd to close the public hearing at 6:09pm and to approve the special assessment roll and adopt the resolution.
ROLL VOTE: Ayes: Spataro, Warmington, Buie, Gawron, Larson, Schweifler, Shepherd.
Nays: None
MOTION PASSED
2002-48 UNFINISHED BUSINESS:
a. 2002-2003 CDBG/HOME Recommendations and City Commission Final decisions. COMMUNITY AND NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To make final determination for fiscal year 2002-2003 CDBG/HOME funding and to direct staff to continue the CDBG/HOME process. In order to request release of funds from the U.S. Department of Housing and Urban Development Department at the proper time.
FINANCIAL IMPACT: Will determine what is funded during 2002-2003 CDBG/HOME fiscal year (June 1, 2002 through May 31, 2003).
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To make your final determination.
COMMITTEE RECOMMENDATION: The Citizen District Council, the administration and the Commissions preliminary recommendations are attached.
Motion by Commissioner Schweifler, second by Commissioner Shepherd to approve staff to continue the CDBG/HOME process in order to request release of funds from the US Department of Housing and Urban Development at the proper time.
ROLL VOTE: Ayes: Warmington, Buie, Gawron, Larson, Schweifler, Shepherd, Spataro,.
Nays: None
MOTION PASSED
2002-49 NEW BUSINESS:
a. Selection of Health Insurance Program to Replace PHP. FINANCE
SUMMARY OF REQUEST: As you know, the PHP healthcare program (which has been the city’s primary health service provider for several years) will soon cease operations in the Muskegon area. The City’s benefit year begins June 1 and a replacement program must be in place before that time. For the last several months staff has worked with Julie Balgooyen (agent of record) to search for a suitable replacement program. Three objectives guided this search: 1) match current program benefit levels as closely as possible, 2) minimize employee disruption (i.e. required doctor changes) and 3) minimize the financial impact on the City in an era of rapidly escalating healthcare costs.
After careful review of proposals submitted by the various healthcare providers operating in the Muskegon area, it is staff’s recommendation the Priority Health HMO be selected to replace PHP. Following are the reasons for this recommendation: 1) Although there are some differences in benefits, the Priority Health benefits match up better than the other programs when compared to PHP (see comparison), 2) Disruption is limited to 35 employees and dependents which is less than all but one of the other proposals, and 3) Cost increases, although substantial, are within the City’s expectations and, when adjusted for benefit differences, the Priority Health proposal is the lowest cost proposal.
FINANCIAL IMPACT: The Priority Health program premiums will be $526.33 per employee per month. This represents an 9.3% increase over the current rate of $481.63.
BUDGET ACTION REQUIRED: None. The quoted rates fall within the City’s 2002 budget projections.
Staff Recommendation: Selection of Priority Health HMO.
COMMITTEE RECOMMENDATION: The City’s Labor-Management Committee has been involved in the selection process and concurs with staff’s recommendation. This item will also be discussed at the April 8th Committee of the Whole meeting.
Motion by Commissioner Shepherd, second Commissioner Gawron to approve staff’s recommendation to select Priority Health HMO to replace PHP as the city’s primary health service provider.
ROLL VOTE: Ayes: Buie, Gawron, Larson, Schweifler, Shepherd, Spataro, Warmington
Nays: None
MOTION PASSED
b. Sewer and Water RTS Rate Adjustments. FINANCE
SUMMARY OF REQUEST: As explained more fully in the accompanying memos, staff recommends the following sewer and water rate increases to take effect June 1, 2002.
1. An 18% increase in fees charged for residential, commercial and industrial sewer use;
2. A $.50 increase (from $7.50 to $8.00) in the sewer administrative fee;
3. Changes in the water readiness to serve charge (minimum bill) to bring city charges in alignment with AWWA recommended standards.
FINANCIAL IMPACT: The sewer rate adjustments will bring in an estimated $575,000 additional full year revenue for the city’s sewer fund. The revenue impact for 2002 will be less due to the mid-year implementation. The Change in water RTS fees will generate and additional $52,000 annual revenue for the city’s water fund.
BUDGET ACTION REQUIRED: None at this time. Adoption of these fee adjustments will help the city attain its 2002 budgeted revenue estimates.
STAFF RECOMMENDATION: Adoption of the fee adjustment resolution.
COMMITTEE RECOMMENDATION: The Committee of the Whole will discuss this issue at the April 8th meeting.
Motion by Commissioner Schweifler, second by Commissioner Larson to adopt the fee adjustment resolution.
ROLL VOTE: Ayes: Gawron, Larson, Schweifler, Shepherd, Spataro, Warmington, Buie
Nays: None
MOTION PASSED
c. First Reading , Expansion of Clay-Western Historic District. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the proposed expansion of the Clay-Western Historic District to include the Boiler Works.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the expansion of Clay-Western Historic District.
COMMITTEE RECOMMENDATION: None
Motion by Commissioner Schweifler, second by Commissioner Spataro to table the proposal of the expansion of Clay-Western Historic District to the May 14, 2002 Regular Commission Meeting.
ROLL VOTE: Ayes: Larson, Schweifler, Shepherd, Spataro, Warmington, Buie, Gawron
Nays: None
MOTION PASSED
d. City Commission Goals, 2002 and Beyond. ASSISTANT CITY MANAGER
SUMMARY OF REQUEST: On March 15, 2002, the City Commission and staff participated in their annual goal setting session. The Vision, Value and Mission statements, along with a set of prioritized projects/programs are the result of that undertaking. Staff is requesting approval of both documents.
FINANCIAL IMPACT: None
STAFF RECOMMENDATION: Staff recommends approval.
COMMITTEE RECOMMENDATION: This issue was reviewed and discussed at the Commission Work Session on Monday, April 8, 2002.
Motion by Commissioner Larson, second by Commissioner Schweifler to approve both documents.
ROLL VOTE: Ayes: Schweifler, Shepherd, Spataro, Warmington, Buie, Gawron, Larson
Nays: None
MOTION PASSED
e. Concurrence with the Housing Board of Appeals Notice and Order to Demolish for the following:
1) 1362 Getty
2) 431 Monroe
3) 509 Octavius
4) 1850 Elwood
5) 1525 Huizenga
SUMMARY OF REQUEST: This is to request that the City Commission Concur with the findings of the Housing Board of Appeals that the structure located at 1362 Getty, 431 Monroe, 509 Octavius, 1850 Elwood and 1525 Huizenga are unsafe, substandard, a public nuisance and that they be demolished within thirty (30) days. It is further requested that administration be directed to obtain bids for the demolition of these structures and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder.
FINANCIAL IMPACT: General Funds except for 431 Monroe, 509 Octavius, and 1850 Elwood, which are CDGB.
BUDGET ACTION REQUIRED: None except for except for 1525 Huizenga which is General Funds.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision to demolish.
COMMITTEE RECOMMENDATION: The Commission will consider these items at it’s meeting Tuesday, April 9, 2002.
Motion by Gawron, second by Commissioner Schweifler to concur with the Housing Board of Appeals decision to demolish the said houses.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Buie, Gawron, Larson, Schweifler
Nays: None
MOTION PASSED
f. Seaway Industrial Park. CITY MANAGER
City Manager Bryon Mazade gave an overview.
Motion by Commissioner Shepherd, second by Commissioner Larson to authorize staff to continue working with Grooter’s Development regarding an agreement (subject to satisfaction of City Manager and City Attorney) by April 12th.
ROLL VOTE: Ayes: None
Nays: Spataro, Warmington, Buie, Gawron, Larson, Schweifler, Shepherd.
MOTION FAILED
Mayor Warmington requested a special meeting for discussion regarding Grooter’s Development to be held on April 12, 2002 at 5:30pm.
2002-50 PUBLIC PARTICIPATION:
John Vanderstelt of Van’s Car Wash and Quick Lube, 1230 West Sherman Blvd. was concerned with the amount he was being charged for use of sewer.
Motion by Commissioner Spataro, second by Commissioner Schweifler to have staff look into Mr. Vanderstelt’s concern and report in two weeks to Commission.
ROLL VOTE: Ayes: Warmington, Buie, Gawron, Larson, Schweifler, Shepherd, Spataro
Nays: None
MOTION PASSED
Various comments were heard from the public.
ADJOURNMENT: The Regular Commission Meeting for the City of Muskegon was adjourned at 6:50pm.
Respectfully submitted,
Gail Kundinger, CMC/AAE
City Clerk