View the PDF version Google Docs PDF Viewer
CITY OF MUSKEGON
CITY COMMISSION MEETING
MARCH 9, 2010
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 9,
2010.
Mayor Warmington opened the meeting with a prayer from Elder George
Monroe from Evanston Avenue 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, Clara Shepherd, Lawrence Spataro, and Sue
Wierengo, City Manager Bryon Mazade, City Attorney John Schrier, and City
Clerk Ann Marie Becker.
Absent: Commissioner Chris Carter.
2010-19 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the February 19th Goal Setting
Meeting and the February 23rd Regular Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
C. Liquor License Transfer Request for 88 Gas & Beer, Inc., 1992 S. Getty
Street. CITY CLERK
SUMMARY OF REQUEST: The Liquor Control Commission is seeking local
recommendation on a request from 88 Gas & Beer, Inc. to transfer ownership of
the 2009 SDM License located at 1992 S. Getty, from Raj & Sidhu, Inc.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: All departments are recommending approval.
D. Purchase of 531 Orchard. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the purchase of 531 Orchard from Jay Dee
Property LLC of 1375 5th Street, Muskegon, MI 49442 for the appraised price of
$13,000.
After 531 Orchard is obtained, the City will demolish the property as a part of its
Operation R & R II Orchard Street Redevelopment program.
FINANCIAL IMPACT: The funding for the purchase will be taken from CDBG
program income and the demolition of the property will be funded with
Neighborhood Stabilization funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request to purchase the property.
E. 2010-2011 Healthcare & Wellness Program. FINANCE
SUMMARY OF REQUEST: It is time to renew the City’s healthcare coverage for
2010-11. Last year significant changes were made to the healthcare program
including introduction of HRA accounts and adoption of Priority Health’s “co-
pay alignment” program. These measures helped stabilize costs in 2010.
However, healthcare costs continue to rise. Renewal premiums for the City’s
current healthcare program have come in at $815.85/employee/month, a
9.45% increase over the current rate ($745.40).
Staff proposes implementation of a formal wellness initiative tied to specific
benefit levels. For 2010-11, Wellness Program participation will mean the City will
continue to pay HRA deductibles; non-participants will pay the first $500 (single)/
$1,000 (family) of the deductible. As employee deductible shares increase in
future years, a differential will be maintained to incentivize Wellness
participation.
FINANCIAL IMPACT: Following is a comparison of current and next year costs for
the Priority Health HMO program:
2009-10 2010-11
Premium $8,945 $9,790
Self-Insured HRA Costs (a) 900 981
Employee Premium Co-pay (520) (520)
Net City Cost/EE 9,325 10,251
Number of Covered Employees (b) 234 234
Total Annual City Cost $2,182,050 $2,398,734
(a) Estimated based on YTD experience
(b) Will likely decrease in 2010-11 due to cutbacks
BUDGET ACTION REQUIRED: None at this time. Employee and retiree healthcare
costs are included in the 2010 budget. Five months of the 2010 budget year will
be at the “old” rate and seven months will be at the “new” rate. The net
weighted average monthly cost for 2010 is $9,865/EE vs. a budgeted amount of
$9,842/EE. There are adequate reserves in the General Insurance Fund to cover
the difference.
STAFF RECOMMENDATION: Authorize staff to execute documents with Priority
Health to renew healthcare coverage and implement the Wellness program
outlined herein.
F. Project Safe Neighborhood Subaward Agreement. PUBLIC SAFETY
SUMMARY OF REQUEST: The United States Department of Justice, Office of
Justice Programs, has awarded the Muskegon Police Department a $5,000 grant
under the auspices of Project Safe Neighborhoods (PSN). PSN is a nationwide,
anti-gun initiative. We have been a member of the PSN Federal Taskforce since
its inception. The award money will be utilized to purchase a ProHD CCD
Camcorder with accessories. This camcorder will be used to aid us in processing
crime scenes.
The award is being administered by Grand Valley State University, who serves as
the Primary Awardee. The Director of Public Safety is asking that you authorize
him to sign the appropriate grant award documents.
FINANCIAL IMPACT: None, no matching funds are required.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize the Director of Public Safety to enter into
the agreement.
G. City-MDOT Agreement for the Bridge Work on US-31BR over the South
Branch of the Muskegon River. ENGINEERING
SUMMARY OF REQUEST: To approve the contract with MDOT for the decks
reconstruction of the two bridges on US-31 BR over the south branch of the
Muskegon River and to approve the resolution authorizing the Mayor and City
Clerk to sign the contracts.
FINANCIAL IMPACT: The City’s required participation on this MDOT project is
expected to be $98,900.
BUDGET ACTION REQUIRED: This project needs to be incorporated into the 2010
CIP budget.
STAFF RECOMMENDATION: Approve the contract and resolution and authorize
the Mayor and Clerk to sign both.
H. Fireworks Display Permit for West Michigan Burnerz. CITY CLERK
SUMMARY OF REQUEST: West Michigan Burnerz is requesting approval of a
fireworks display permit for March 12, 2010, at the L. C. Walker Arena during the
Hockey Game. Fire Marshall Metcalf has reviewed the request and
recommends approval contingent on inspection of the fireworks and approval
of the insurance.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval contingent on inspection of the fireworks
and approval of the insurance.
I. Community Relations Committee Resignations and Appointments. CITY
CLERK
SUMMARY OF REQUEST: To accept the recommendations from the Community
Relations Committee made at the meeting held on March 8, 2010, as follows:
Accept resignation from Shontea L. Jenkins from the Civil Service Board
Removal of Muhammad Hakeem from the Citizen’s District Council due to
requirement of City resident not met at this time.
To table the Civil Service appointment until the next meeting scheduled in April.
To have the Land Reutilization Committee discontinued.
Waive resident requirement for Citizens on the Local Development Finance
Authority and include persons with “Interest in the District”.
Appointments of Ken Kraus as Citizen to the Downtown Development
Association, and T. Arnold Boezaart, Melissa Wickman, Jeffery Burr, Rosie
Buchanan as Citizens/Interest in District to the Local Development Finance
Authority.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Community Relations Committee
recommendations.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to approve
the Consent Agenda as read minus item B.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, and
Wisneski
Nays: None
MOTION PASSES
2010-20 ITEM REMOVED FROM THE CONSENT AGENDA:
B. Gaming License Request for the Greater Muskegon Woman’s Club.
CITY CLERK
SUMMARY OF REQUEST: The Greater Muskegon Woman’s Club is requesting a
resolution recognizing them as a non-profit organization operating in the City for
the purpose of obtaining a Gaming License. They have been recognized as a
501(c)(3) organization by the State.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the Gaming License request for the Greater Muskegon Woman’s Club.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, and
Wisneski
Nays: None
MOTION PASSES
2010-21 PUBLIC HEARINGS:
A. Recommendation for Annual Renewal of Liquor Licenses. CITY CLERK
SUMMARY OF REQUEST: To adopt a resolution recommending non-renewal of
those liquor license establishments who are in violation of Section 50-146 and 50-
147 of the Code of Ordinances for the City of Muskegon. These establishments
have been found to be in non-compliance with the City Code of Ordinances
and renewal of their liquor licenses should not be recommended by the City
Commission. If any of these establishments come into compliance by March 22,
2010, they will be removed from this resolution and recommendation for their
renewal will be forwarded to the Liquor Control Commission.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Adoption of the resolution.
The Public Hearing opened to hear and consider any comments from the
public. Comments were heard from: Michelle Harris, Dockers Restaurant, 3505
Marina View Point; Vincent Stafney, Muskegon Recreation Club, 1763 Lakeshore;
Jennifer Osborn, Captain Jack’s Bar & Grill, 1601 Beach; and Jason, Walgreens,
840 W. Sherman.
Motion by Vice Mayor Gawron, second by Commissioner Wisneski to close the
Public Hearing and adopt the resolution approving the annual renewal of liquor
licenses to be in compliance by March 23, 2010.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, and
Wisneski
Nays: None
MOTION PASSES
2010-22 NEW BUSINESS:
A. Consideration of Bids for B-241 Heritage Landing Bike Path Extension.
ENGINEERING
SUMMARY OF REQUEST: Award the Heritage Landing Bike Path Extension project
to Accurate Excavators out of Muskegon since they were the lowest responsible
bidder with a total bid price of $43,140 (without prevailing wages).
FINANCIAL IMPACT: The construction cost of $43,140 plus engineering which is
estimated at an additional 10%.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the construction project to Accurate
Excavators.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to award
the construction project for the Heritage Landing Bike Path Extension to Accurate
Excavators.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, and
Wisneski
Nays: None
MOTION PASSES
B. Water Bond Refunding. FINANCE
SUMMARY OF REQUEST: You may recall that in January 2009, the City
Commission adopted an ordinance to initiate and authorize the refunding of
Series 1999 and Series 1993 water revenue bonds. However, interest rates did
not cooperate and the refunding was deemed uneconomical before it could
be completed.
Interest rates are again favorable and a recent analysis shows that these bonds
can be refunded with projected present value savings to the City of $299,017.
This equates to 4.80% of the outstanding principal. A general rule of thumb is
that PV savings should equal at least 2% of bond principal in order to proceed
with a refunding.
FINANCIAL IMPACT: A formal analysis of the proposed bond refunding is
available.
BUDGET ACTION REQUIRED: None at this time. Interest savings will be reflected
in future years’ water fund budgets.
STAFF RECOMMENDATION: Adoption of the ordinance which amends the
original Commission action and authorizes staff to execute documents to sell the
water refunding bonds.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to adopt the
ordinance which amends the original Commission action and authorizes staff to
execute documents to sell the water refunding bonds.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, and
Gawron
Nays: None
MOTION PASSES
C. Summer Celebration Payment Deferral. CITY MANAGER
SUMMARY OF REQUEST: To consider a request from Summer Celebration for an
extension and payment plan for 2009 city services.
FINANCIAL IMPACT: $66,299.93 due for 2009.
BUDGET ACTION REQUIRED: The lack of payment negatively impacted the 2009
budget.
STAFF RECOMMENDATION: None.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to authorize
the Summer Celebration payment deferral.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Gawron, and
Shepherd
Nays: None
MOTION PASSES
2010-23 ANY OTHER BUSINESS: Some Commissioners requested the City
Manager prepare an ethics resolution to be presented at the March 23rd City
Commission Meeting.
PUBLIC PARTICIPATION: Various comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:06 p.m.
Respectfully submitted,
Ann Marie Becker, MMC
City Clerk