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CITY OF MUSKEGON
CITY COMMISSION MEETING
MARCH 22, 2011
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 5:30 p.m., Tuesday, March 22,
2011.
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 Steve Wisneski, Chris Carter, Clara Shepherd, Lawrence Spataro,
and Sue Wierengo, City Manager Bryon Mazade, City Attorney John Schrier,
and City Clerk Ann Marie Becker.
2011-19 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the March 7th Commission
Worksession Meeting and the March 8th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Lease Proposal for MACkiteboarding at Pere Marquette Park. PUBLIC
WORKS
SUMMARY OF REQUEST: Staff is asking permission to enter into a three-year
contractual agreement with Steve Negen of MACkiteboarding for a Kiteboard
School and Shop in Pere Marquette Park at 1955 Beach Street (former old
brown/brick beach house building by Filtration Plant).
FINANCIAL IMPACT: Revenue will be $2,500 per year for 2011, 2012 and 2013
contract years. Lessee also agrees to provide a Handicapped Restroom outside
of building. Previous three-year contract revenue was $2,500 per year for the
2008, 2009, and 2010 seasons.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve request.
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C. City – MDOT Agreement for the Reconstruction of Temple Street, Young
to Laketon. ENGINEERING
SUMMARY OF REQUEST: Approve the contract with MDOT for the reconstruction
of Temple Street from Young to Laketon. And approve the resolution authorizing
the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT: MDOT’s participation is limited to the TEDF-A (state funds) of
$139,003. The estimated total construction cost is $175,000.
BUDGET ACTION REQUIRED: None at this time as this project appears in the
2010/2011 budget (2nd reforecast).
STAFF RECOMMENDATION: Approve the contract and resolution authorizing the
Mayor and Clerk to sign both.
D. City – MDOT Agreement for the Reconstruction of Getty Street, Laketon
to Evanston. ENGINEERING
SUMMARY OF REQUEST: Approve the contract with MDOT for the reconstruction
of Getty Street from Laketon to Evanston. And approve the resolution
authorizing the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT: MDOT’s participation is limited to the TEDF-F (state funds) of
$375,000. The estimated total construction cost is $1,000,000 which is different
than what is shown in the agreement of $525,000. The agreement figure of
$525,000 was based on a milling and resurfacing construction method which has
since been deemed as not appropriate due to underground work among other
reasons.
BUDGET ACTION REQUIRED: Due to higher than originally anticipated required
local match, it is likely the City need to issue MTF bonds for this and other grant
funded street projects. A potential bond issue was included in the 2010/2011
budget but was deferred. This project, if approved, will be included in the
2011/2012 budget.
STAFF RECOMMENDATION: Approve the contract and resolution authorizing the
Mayor and Clerk to sign both.
E. Amend Chapter 30 of the Code of Ordinances – Fire Prevention.
PUBLIC SAFETY
SUMMARY OF REQUEST: The Director of Public Safety is requesting that the City
Commission amend Chapter 30 of the Code of Ordinances concerning Fire
Prevention and Protection. This includes the adoption of the 2009 International
Fire Code.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the request.
Motion by Commissioner Carter, second by Commissioner Wierengo to
approve the Consent Agenda as read.
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ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, Gawron,
and Shepherd
Nays: None
MOTION PASSES
2011-20 UNFINISHED BUSINESS:
A. SECOND READING: Amendment to the Zoning Ordinance – Medical
Marihuana Facilities. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Staff initiated request to amend Section 1500 (Principle
Uses Permitted) of Article XV (I-2, General Industrial Districts) of the zoning
ordinance to allow medical marihuana caregiver facilities as a principal use
permitted in I-2, General Industrial Districts.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request at their February 10th meeting.
Motion by Commissioner Spataro, second by Commissioner Wierengo to
approve the amendment to the zoning ordinance for medical marihuana
facilities as described.
ROLL VOTE: Ayes: Carter, Gawron, Spataro, Warmington, Wierengo, and
Wisneski
Nays: Shepherd
MOTION PASSES
B. SECOND READING: Amendment to the City Code of Ordinances –
Medical Marihuana Regulation and Licensing. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Staff initiated request to amend Chapter 34, Article IV of
the Code of Ordinances to regulate and license certain aspects of medical
marihuana cultivation, use and distribution.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the ordinance amendment.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the second reading of the City Ordinance for medical marihuana regulation and
licensing.
ROLL VOTE: Ayes: Wierengo, Wisneski, Carter, Gawron, Spataro, and
Warmington
Nays: Shepherd
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MOTION PASSES
2011-21 NEW BUSINESS
A. Contract for Assessing Services. FINANCE
SUMMARY OF REQUEST: Since 1999, the City has contracted with the Muskegon
County Equalization Department for assessing services. The closure of the Sappi
plant together with general tax base loss changed the City’s required assessor
status from Level IV to Level III. This caused staff to explore whether taking the
assessing function back in-house might be cost effective. However, after in-
depth discussions with the County, we have reached a new five-year
agreement that continues the current intergovernmental service model while
achieving the City’s cost goals. The proposed agreement is presented here for
your consideration.
FINANCIAL IMPACT: The base cost for the proposed contract is $344,367 with
yearly adjustments based on the growth (decline) in the City’s taxable value.
The base cost for the current contract is $459,300.
BUDGET ACTION REQUIRED: Agreed to costs for assessing services will be
included in the forthcoming 2011-12 budget. The City will see reduced costs for
the last quarter of the 2010-11 fiscal year which will be incorporated in the
upcoming budget reforecast.
STAFF RECOMMENDATION: Authorize staff to execute documents with
Muskegon County for continued provision of assessing services.
Motion by Vice Mayor Gawron, second by Commissioner Carter to authorize
staff to execute documents with Muskegon County for continued provision of
assessing services.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter,
and Gawron
Nays: None
MOTION PASSES
B. 2011-2012 Healthcare & Wellness Program. FINANCE
SUMMARY OF REQUEST: It is time to renew the City's healthcare coverage for
2011-12. Renewal premiums for the City's current healthcare program have
come in at $887.88/employee/month, an 8.83% increase over the current rate
($815.85). Last year we experienced a 9.45% increase. In comparative terms,
the rate increase is fairly moderate. Many employers are experiencing double-
digit increases partially attributable to coverage enhancements mandated by
last year’s federal healthcare legislation.
For 2011-12, the City will continue to pay HRA deductibles for employees who
complete the four-step wellness initiative prior to April 30th; non-participants in
the wellness program will pay the first $500 (single)/ $1,000 (family) of the
deductible.
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Staff is also focusing on increasing the premium co-pay in employee
negotiations.
FINANCIAL IMPACT: Following is an estimate of proposed costs for the Priority
Health HMO program compared with the current year:
2010-11 2011-12
Annual Premium per Employee $9,790 $10,655
Approx. Self-Insured HRA Costs per Employee 700 700
Typical Employee Premium Co-pay (520) (780)
Net City Cost 9,970 10,575
Approx. No. of Covered Emp. (Subject to Reduction) 231 231
Total Annual City Cost $2,303,070 $2,442,825
BUDGET ACTION REQUIRED: Employee and retiree healthcare costs will be
included in the forthcoming 2011-12 budget.
STAFF RECOMMENDATION: Authorize staff to execute documents with Priority
Health to renew healthcare coverage.
Motion by Vice Mayor Gawron, second by Commissioner Carter to authorize
staff to execute documents with Priority Health to renew healthcare coverage.
ROLL VOTE: Ayes: Warmington, Wierengo, Wisneski, Carter, Gawron, Shepherd,
and Spataro
Nays: None
MOTION PASSES
C. 2011-2012 CDBG/HOME Recommendations. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To accept the recommendations of the Administration
and Citizen’s District Council in regards to the 2011-2012 CDBG/HOME
anticipated entitlement. The Commission is scheduled to make their preliminary
decision regarding the 2011-2012 CDBG/HOME allocation entitlement during the
City Commission meeting scheduled for March 22, 2011, with a public hearing of
the same on April 26, 2011.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: To determine a budget for the CNS department
and direct staff to publish the recommended budget for a 30-day comment
period for the proposed July 1, 2011 – June 30, 2012 program year.
STAFF RECOMMENDATION: Approve acceptance of the recommendations
of the Administration and Citizen’s District Council and to make their
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preliminary recommendations for publication.
COMMITTEE RECOMMENDATION: The Citizen District Council has made their
recommendations.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the acceptance of the recommendations of the administration and to
make their preliminary recommendations for publication.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo,
Wisneski, and Carter
Nays: None
MOTION PASSES
D. Civil Service Budget Adjustment. CITY MANAGER
SUMMARY OF REQUEST: To authorize an increase in the Civil Service budget in
the amount of $10,000. This amount should carry the Civil Service operation into
the middle of next month and provide the Civil Service Commission additional
time to consider options for the future direction of the operation. This action is
necessary due to the rate of spending in contrast to the original budgeted
allocation.
FINANCIAL IMPACT: $10,000.
BUDGET ACTION REQUIRED: Authorize the budget adjustment.
STAFF RECOMMENDATION: To approve the proposed budget adjustment.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
proposed budget adjustment regarding Civil Service.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, and Wierengo
Nays: Wisneski, Spataro, and Warmington
MOTION PASSES
ANY OTHER BUSINESS: Various comments were heard from the Commission.
PUBLIC PARTICIPATION: Public comments received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:25 p.m.
Respectfully submitted,
Ann Marie Becker, MMC
City Clerk
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