City Commission Minutes 06-12-2012

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                         JUNE 12, 2012
    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, MI at 5:30 p.m., Tuesday, June 12, 2012.
Mayor Warmington opened the meeting with a prayer from Pastor Josh Dear
from the Lakeside Baptist Church 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 Eric Hood, Lawrence Spataro, Willie German, Sue Wierengo, and
Byron Turnquist, and City Manager Bryon Mazade, City Attorney John Schrier,
and City Clerk Ann Marie Cummings.
2012-45 HONORS AND AWARDS:
                                                                        PUBLIC
      A. Recognition of Spring 2012 Citizen’s Academy Graduates.
         SAFETY
Public Safety Director Jeff Lewis read the resolution and thanked the 2012
Citizen’s Police Academy for their faithful attendance, completion and
graduation from the ten week academy.
2012-46 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the May 22nd City Commission
Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      B. Environmental Program Mowing and          Trash   Clean-up   Contract.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The contract for mowing of lots and trash clean up of
public and private properties previously held by Freelance Enterprises Inc. had


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expired on March 31, 2012. A request for bids was advertised and four
companies placed bids. Freelance Enterprises of Muskegon Township is the low
bidder for a three-year agreement.
FINANCIAL IMPACT: None, funds budgeted for this activity.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve a three-year contract with Freelance
Enterprises Inc. and to authorize the Mayor and City Clerk to sign the
agreements, for the mowing of lots and trash removal on properties located
within the City.
      C. City – MDOT Agreement for the Reconstruction of Sherman Blvd. from
         Lincoln to Estes. ENGINEERING
SUMMARY OF REQUEST: Approve the contract with MDOT for the reconstruction
of Sherman Blvd. from Lincoln to Estes, and approve the resolution authorizing
the Mayor and the City Clerk to sign the contract.
FINANCIAL IMPACT: MDOT’s participation is limited to the approved federal
funds of $481,000. The estimated total construction cost is $1,110,500 plus
engineering cost.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the contract and resolution authorizing the
Mayor and Clerk to sign both.
      D. Approval of Contractor for New Construction of House at 605 Jackson.
         COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with DeRose Builders Inc, 7786
Wiczer Drive, Whitehall, for the new construction of a house located at 605
Jackson for the cost of $117,446.
The property was purchased with Neighborhood Stabilization funds from the
Michigan State Housing Development Authority, and HOME funds from HUD will
be used for the construction. After the new construction is completed, the
home will be marketed to sell to an eligible homebuyer with an annual income
less than 80 percent of the area median income. The City received six bids.
FINANCIAL IMPACT: Funding for the project has been approved in our current
budget (2011-2012) from the HOME Investment Partnership funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval for the Community and Neighborhood
Services office to prepare an agreement with DeRose Builders and direct the
Mayor and Clerk to sign the contract.




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      E. Liquor License Request from Top Spin, Inc., 2536 Henry. CITY CLERK
SUMMARY OF REQUEST:         The Liquor Control Commission is seeking local
recommendation on a request from Top Spin, Inc., of 2536 Henry Street to
transfer ownership of Escrowed 2011 Class C-SDM Licensed Business with Sunday
Sales Permit (PM), Dance-Entertainment Permit, Outdoor Service (1 Area) and
Specific Purpose Permit (Food) from Team Red Dawn, LLC.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: All departments are recommending approval.
      F. Fireworks Display Permit for Muskegon Country Club. CITY CLERK
SUMMARY OF REQUEST: Melrose Pyrotechnics, Inc. is requesting approval of a
fireworks display permit for July 4, 2012, at the Muskegon Country Club, 2801
Lakeshore Drive. Fire Marshall Metcalf will inspect the fireworks on the day of the
event.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval contingent on inspection of the fireworks
and approval of insurance.
      G. Polling Sites Relocation. CITY CLERK
SUMMARY OF REQUEST: Building closures, redistricting, and ADA compliance
have forced the City to move polling locations. Staff proposes to move the
following:
         •   Bluffton School (closure) to Great Lakes Naval Museum
         •   McLaughlin School (closure) to City Hall
         •   Hackley Administration Building (ADA Compliance) to City Hall
         •   Nelson School (redistricting) to Department of Public Works
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED:         To approve the polling location changes as
outlined above.
STAFF RECOMMENDATION: To approve the polling location changes as outlined
above.
COMMITTEE RECOMMENDATION:            The Election Commission approved the
changes as stated at their June 7th meeting.
      H. Approval of Title Company for Community and Neighborhood Services.
         COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST:         To approve Lighthouse Title, Inc., to be used by the


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City of Muskegon for the title work and closing agency for the CNS Housing
program.
FINANCIAL IMPACT: Fees paid from proceeds of sale or project budgets.
BUDGET ACTION REQUIRED: None.
STAFF RECOMEDATION: To approve Lighthouse Title, Inc., for Community and
Neighborhood Services Title Agency needs.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to approve
the Consent Agenda as presented.
ROLL VOTE: Ayes: Spataro, German, Gawron, Wierengo, Turnquist, Warmington,
           and Hood
            Nays: None
MOTION PASSES
2012-47 PUBLIC HEARINGS:
      A. 2012-13 Budget. FINANCE
SUMMARY OF REQUEST: The City Commission may take action to adopt the
2012-13 budget with whatever changes or adjustments it deems necessary. City
ordinance requires the budget be adopted by the second regular City
Commission meeting in June.
FINANCIAL IMPACT: The budget sets forth the priorities and overall financial plan
for operations in the year 2012-13.
BUDGET ACTION REQUIRED: Adoption of the budget resolution provides the
legal appropriation authority necessary for City departments to conduct
operations in 2012-13.
STAFF RECOMMENDATION: Receive public comments. Upon closing the public
hearing, the City Commission may decide to adopt the budget.
The Public Hearing opened to hear and consider any comments from the
public. Comments were heard from Joshua Eldenbrady, 1336 Spring Street;
Margaret Roles, 1350 W. Hackley; Dorothy Davidge, 1350 W. Hackley; Roger
Nye, 1495 Westwood Circle; Marion Oleocarchek, 690 W. Southern; Dan Mills,
1817 Mills; Kay Windget, 1350 W. Hackley; Mark Evans, 1899 Barnes Road; Phyllis
Hallberg, 1350 W. Hackley; and Gail Funk, 1350 W. Hackley
Motion by Commissioner Spataro, second by Commissioner German to close
the Public Hearing.
ROLL VOTE: Ayes: German, Gawron, Wierengo, Turnquist, Warmington, Hood,
           and Spataro
            Nays: None


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MOTION PASSES
Motion by Commissioner Spataro, second by Vice Mayor Gawron to adopt the
2012-2013 Budget as presented.
ROLL VOTE: Ayes: Gawron, Wierengo, Turnquist, Warmington, Hood, Spataro,
           and German
            Nays: None
MOTION PASSES
Motion by Commissioner Spataro, second by Commissioner Wierengo to direct
staff to provide for the June 26th Commission Meeting a proposal for funding the
Senior Transit to the end of the year and ballot proposal language to bring to the
citizens of the City of Muskegon the opportunity to vote to fund this as a regularly
operated program.
ROLL VOTE: Ayes: Wierengo, Turnquist, Warmington, Hood, Spataro, German,
           and Gawron
            Nays: None
MOTION PASSES
2012-48 NEW BUSINESS:
      A. Proposed Betten Development Agreement Changes/Promissory Note
         with BRA. CITY MANAGER
SUMMARY OF REQUEST: The City’s Brownfield Redevelopment Authority (BRA) is
obligated to reimburse Betten Automotive Group for eligible costs incurred in
the redevelopment of their Henry Street project plus 6.5% interest. Total
reimbursable costs (plus interest to date) amount to $1,681,590. Under terms of
the original development agreement, these costs would be paid by the BRA
over several years as tax increment revenues were collected. Interest would
continue to accrue on the unpaid balance.
As described more fully, this proposal is for the City to loan the BRA $1.66 million
to pay off Betten now. The benefits are as follows:
            •   Benefit to BRA: reduce interest costs from 6.5% to 3.25% payable
                to City instead of developer
            •   Benefit to City: rate of return higher than can be achieved on
                investments like CD’s or US Treasuries
            •   Benefit to Developer: cash received up front to help facilitate
                further development of Henry Street corridor (also benefits the
                City and BRA)
The City would be repaid over thirteen years (or sooner) at a rate of 3.25% from
BRA tax increment proceeds.

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FINANCIAL IMPACT: The City’s loan to the BRA would be carried equally by the
following City funds having adequate cash reserves: General Insurance Fund,
Equipment Fund and Cemetery Perpetual Care Fund. The 3.25% interest is much
better than can be earned on CD’s, US Treasuries or other investment
instruments.
BUDGET ACTION REQUIRED: The BRA budget will be amended to reflect loan
payments to the City instead of reimbursements to developer.
STAFF RECOMMENDATION: 1.) Approval of proposed development agreement
changes and, 2.) execution of the related promissory note between the City
and the BRA.
COMMITTEE RECOMMENDATION: The BRA met on May 29th and approved the
proposed development agreement changes and promissory note.
Motion by Vice Mayor Gawron, second by Commissioner Hood to approve the
proposed development agreement changes with Betten Development and
execute the related promissory note between the City and the BRA.
ROLL VOTE: Ayes: Turnquist, Warmington, Hood, Spataro, German, Gawron, and
           Wierengo
            Nays: None
MOTION PASSES
      B. Engineering Services Agreement for Williams Street Storm Outlet.
         ENGINEERING
SUMMARY OF REQUEST: Authorize staff to enter into an engineering services
agreement with Flies & Vandenbrink Engineering out of Muskegon to perform an
emergency survey, design and permitting project to replace/repair a 54” storm
sewer outlet at the northerly end of Williams Street just north of White Street for
an estimated cost of $9,800.
FINANCIAL IMPACT: The engineering cost of $9,800 at this time.
BUDGET ACTION REQUIRED: This project will have to be added to the 2012-2013
budget.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with F&V
engineering. This recommendation was arrived at due to the urgency of the
current condition of the storm sewer outlet and complexity of the project.
Motion by Commissioner Turnquist, second by Vice Mayor Gawron to authorize
staff to enter into an agreement with Flies & Vandenbrink Engineering.
ROLL VOTE: Ayes: Warmington, Hood, Spataro, German, Gawron, Wierengo,
           and Turnquist
            Nays: None


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MOTION PASSES
      C. Fireworks Display Permit for Community 4th of July Celebration. CITY
         CLERK
SUMMARY OF REQUEST: Fruitport Lions Charities Group is requesting approval of
a fireworks display permit for July 4th at Heritage Landing. Fire Marshall Metcalf
has reviewed the request and recommends approval contingent on inspection
of the fireworks.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval contingent on all requirements being met.
We also request that the late fees for the fireworks permit and special event be
waived.
Motion by Vice Mayor Gawron, second by Commissioner German to approve
the fireworks display permit for the community on the 4th of July contingent on all
requirements being met and that the late fees for the fireworks permit and
special event fee be waived.
ROLL VOTE: Ayes: Hood, Spataro, German, Gawron, Wierengo, Turnquist, and
           Warmington
            Nays: None
MOTION PASSES
      D. Accept the Resignation of Mayor Warmington.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to accept the
resignation from Mayor Warmington effective June 30.
ROLL VOTE: Ayes: Spataro, German, Gawron, Wierengo, Turnquist, and Hood
            Nays: None
            Abstain: Warmington
MOTION PASSES
PUBLIC PARTICIPATION: Public comments received.
2012-49 CLOSED SESSION:         Attorney/Client Communication and Pending
        Litigation.
Motion by Commissioner Spataro, second by Commissioner Wierengo to go into
Closed Session to discuss attorney/client communication and pending litigation.
            Ayes: All Ayes
            Nays: None
MOTION PASSES

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Motion by Commissioner Spataro, second by Vice Mayor Gawron to come out
of Closed Session.
           Ayes: All Ayes
           Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 7:35 p.m.


                                       Respectfully submitted,




                                       Ann Marie Cummings, MMC
                                       City Clerk




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