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CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 12, 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, October 12,
2010.
Mayor Warmington opened the meeting with a prayer from Pastor Tim Cross
from the Living Word 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.
2010-87 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the City Commission Meeting
that was held on Tuesday, September 28, 2010.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Homeless Continuum of Care Network and City of Muskegon –
Memorandum of Understanding (MOU) and Appointment of City
Commission Representative. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The City of Muskegon has had a voting seat on the
Homeless Continuum of Care Network Review Committee for several years. The
current MOU is outdated. In order to retain the City seat on the Review
Committee, a new MOU must be approved. Commissioner Larry Spataro has
served as the City representative in the past.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the MOU and authorize the Mayor’s
signature and appoint Commissioner Spataro as the City of Muskegon
representative to the Review Committee.
C. CDBG Program Administration Agreement – City of Muskegon/City of
Norton Shores. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The City of Muskegon has contracted with the City of
Norton Shores to administer their Community Development Block Grant (CDBG)
program since 2006. The Agreement to administer the program was renewed in
2008 and extended to June 30, 2009. However, although the City of Muskegon
has continued to administer the Norton Shores CDBG program, the Agreement
has not been renewed since that time. Therefore, the Agreement is effective
July 1, 2009, and extends through June 30, 2011.
FINANCIAL IMPACT: The City of Norton Shores pays $22,000 a year to the City of
Muskegon to administer their CDBG program.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Agreement and authorize the Mayor
and City Clerk to sign.
D. West Michigan Metropolitan Transportation Plan (WestPlan) Dues, FY
2011. CITY MANAGER
SUMMARY OF REQUEST: To approve remittance of the City of Muskegon’s
portion of the WestPlan dues for Fiscal Year 2011, payable to West Michigan
Shoreline Regional Development Commission. This agency determines projects
and distributes federal transportation funds.
FINANCIAL IMPACT: $16,040.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve this request.
E. Amend Article III of Chapter 74 of the City’s Code of Ordinance.
ENGINEERING
SUMMARY OF REQUEST: Adopt the proposed amendments to Sections 74-84, 85,
and 86 of Chapter 74, Article III of the City’s Code of Ordinances providing one
more option to enforce the repairs and collection of hazardous sidewalks by
billing the owner(s) without creating a special assessment district. This proposed
alternative, as outlined in Section 74-86, will help the City deal with hazardous
sidewalks after issuing a notice to the owner and subsequently make the repairs,
thus preventing costly claims.
FINANCIAL IMPACT: None at this time since the assumption is that the owner of
record will be billed for the actual cost. However, the possibility is there that the
owner(s) may default.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the proposed amendments to articles
74-84, 85, and 86 of Chapter 74 of the City’s Code of Ordinance.
F. Budgeted Vehicle Replacement – Chevrolet Impalas. PUBLIC WORKS
SUMMARY OF REQUEST: Approval to purchase two 2011 Chevrolet Impalas from
Don Rypma Chevrolet.
FINANCIAL IMPACT: $36,920.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the purchase.
G. Budgeted Equipment Setup. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to purchase five service bodies from
Arista Truck Systems and one plow from Hoekstra Equipment.
FINANCIAL IMPACT: $30,920.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the purchases.
H. Merit Network Inc. – METRO Act Permit. ENGINEERING
SUMMARY OF REQUEST: Approve the permit from Merit Network to install aerial
fiber optic facilities within the City’s right of way and authorize the Mayor and
Clerk to sign said permit.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the permit and sign document.
I. Removal of Zoning Board of Appeals Member and Appointments to
Various Boards. CITY CLERK
SUMMARY OF REQUEST: To remove Eleanor Fife from the Zoning Board of
Appeals, appoint John Derbin to the Board of Review, and appoint Tammy
Halterman to the Zoning Board of Appeals.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
COMMITTEE RECOMMENDATION: The Community Relations Committee
recommended approval at their October 11th meeting.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the Consent Agenda as read.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Wisneski
Nays: None
MOTION PASSES
2010-88 NEW BUSINESS:
A. Richards Park License and Management Agreement. PUBLIC WORKS
SUMMARY OF REQUEST: To approve an agreement with the Muskegon
Conservation District to locate their main office on a portion of the Richards Park
property.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the agreement and to authorize the
Mayor and Clerk to sign the agreement.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the Richards Park License and Management Agreement.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo,
Wisneski, and Carter
Nays: None
MOTION PASSES
B. Consideration of 2011 COLA for Retirees. FINANCE
SUMMARY OF REQUEST: It is time to consider whether an annual cost of living
adjustment (COLA) should be awarded to City retirees. Under the City’s COLA
program, permanent cost of living increases are made to pensioners retired five
years or more. COLA payments are capped at 75% of the CPI and are payable
only when investment performance exceeds estimates and the COLA is
deemed affordable. The last COLA was in 2009, when a 0.50% COLA was
granted.
The collapse of the financial markets in late 2008 continues to take a big toll on
the City’s pension funds as noted in the most recent actuarial valuation:
“If the December 31, 2009 valuation results were based on market value
on that date instead of 10-year smoothed funding value: i) the funded
percent of your entire municipality would be 79% (instead of 99%); and ii)
your total employer contribution requirement for the fiscal year starting
July 1, 2011 would be $4,165,166 (instead of $1,152,252). If the investment
markets do not fully make up for the 2008 losses, employer contribution
requirements can be expected to rise. MERS continues to do everything it
can to make sure that if this proves to be the case, the increases are
incremental as opposed to steep.”
Given the unprecedented economic and investment environment we are in
and the severe market losses suffered by the City’s pension funds, staff
recommends no retiree COLA be awarded for the year beginning January 1,
2011.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Commission action affirming staff’s
recommendation that no COLA increase be granted to City retirees in 2011.
Motion by Vice Mayor Gawron, second by Commissioner Carter to affirm staff’s
recommendation that no COLA increase be granted to City retirees in 2011.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter,
and Gawron
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:07 p.m.
Respectfully submitted,
Ann Marie Becker, MMC
City Clerk