City Commission Minutes 03-27-2007

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                      MARCH 27, 2007
    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 27,
2007.
    Mayor Warmington opened the meeting with a prayer from Vice Mayor
Stephen Gawron 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,
Commissioner Chris Carter, Kevin Davis, Clara Shepherd, Lawrence Spataro, and
Sue Wierengo, City Manager Bryon Mazade, City Attorney John Schrier, and City
Clerk Ann Marie Becker.
                                  Sister City representative Rob Schweifler
INTRODUCTIONS/PRESENTATION:
introduced Deniz Tolga who is from our Sister City Kepez-Turkey. Deniz said
goodbye and thanked the City for their hospitality during his stay.
Commissioner Clara Shepherd presented a resolution to Frances Day thanking
her for her efforts in helping a citizen in need.
2007-27 CONSENT AGENDA:
     A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the March 12th Commission
Worksession, and the March 13th Regular Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
     B. Adoption of Muskegon County Hazard Mitigation Plan Resolution.
        PUBLIC SAFETY
SUMMARY OF REQUEST: The Director of Public Safety is asking the Commission to
consider the adoption of the Muskegon County Hazard Mitigation Plan
Resolution. The Hazard Mitigation Plan is part of the overall response plan for
Muskegon County. The adoption of this resolution will ensure the continued
availability of federal funding including the Pre-Disaster Mitigation Program,
Hazard Mitigation Program and Fire Management Assistance Grants.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of this request.
      C. Road Salt Procurement Authorization. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize road salt procurement for the 2007/2008
winter season through the State of Michigan Extended Purchasing Program.
FINANCIAL IMPACT: Per ton price yet to be determined; average winter usage
of 4,622 tons at the 2006/2007 extended price of $32.99/ton totals $152,479.
BUDGET ACTION REQUIRED: None; expense budgeted for through public works.
STAFF RECOMMENDATION: Approve request.
      D. Beverage Vending Contract for Parks/Marina Facilities. PUBLIC WORKS
SUMMARY OF REQUEST: To enter into a three-year contractual agreement with
Dr. Pepper/Seven Up to provide vending service throughout City Parks and
Marina Facilities.
FINANCIAL IMPACT: Contract revenue is unknown at this time. Approximately
$12,000 in revenue was received from previous vendor (Pepsi) during the 2004-
2006 contracts.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATON: Approve request.
COMMITTEE RECOMMENDATION: The Leisure Services Board had approved the
request to enter into contractual agreement with Dr. Pepper/Seven Up at their
March 19th meeting.
      E. Consideration of Bids for Larch Avenue, Hudson to Barclay Watermain
         Replacement (W-691). ENGINEERING
SUMMARY OF REQUEST: Award the contract for the watermain replacement in
Larch Avenue from Hudson to Barclay to Felco Contractors, Inc. of Muskegon,
MI, since they were the lowest responsible bidder with a bid price of $128,867.80.
FINANCIAL IMPACT: The construction cost of $128,867.80.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to Felco Contractors, Inc.
      F. Consideration of Bids for Hudson Street, Wilson to Laketon Watermain
         Replacement (W-692). ENGINEERING
SUMMARY OF REQUEST: Award the contract for the watermain replacement in
Hudson Street from Wilson to Laketon to Van’s Contracting, Inc. of Coopersville,
MI, since they were the lowest responsible bidder with a bid price of $235,393.02.
FINANCIAL IMPACT: The construction cost of $235,393.02.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to Van’s Contracting, Inc.
      G. Consideration of Bids for Alley Between Torrent Street and Mann Street
         South of Lakeshore Drive Sanitary Sewer Replacement (S-621).
         ENGINEERING
SUMMARY OF REQUEST: Award the contract for the sanitary sewer replacement
in the alley between Torrent Street and Mann Street south of Lakeshore to Felco
Contractors, Inc. of Muskegon, MI, since they were the lowest responsible bidder
with a bid price of $70,951.
FINANCIAL IMPACT: The construction cost of $70,951.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to Felco Contractors, Inc.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
Consent Agenda as read.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd,
           and Spataro
            Nays: None
MOTION PASSES
2007-28 PUBLIC HEARINGS:
                                                                    PLANNING &
      A. Amendments to Brownfield Plan – Hotrod Harley.
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting amendments for the Brownfield Plan.           The
amendments are for the inclusion of property owned by Muskegon Downtown
Believers LLC in the Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in approving the
Brownfield Plan amendments, although the redevelopment of the property into
a commercial project will add to the tax base of the City of Muskegon.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION:            The Muskegon City Commission set the
pubic hearing for March 27, 2007, at their February 27, 2007, meeting. Since that
time, a notice of the public hearing has been sent to taxing jurisdictions, and it
has been published twice in the Muskegon Chronicle. In addition, the
Brownfield Redevelopment Authority approved the Plan amendment on
February 23, 2007, and further recommends that the Muskegon City Commission
approve the Plan amendment.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to close the
Public Hearing and adopt the resolution approving the amendments to the
Brownfield Plan.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
           and Gawron
             Nays: None
MOTION PASSES
      B. Michigan Natural Resources Trust Fund Grant Application for Smith-
                          PLANNING & ECONOMIC DEVELOPMENT/LEISURE
         Ryerson Park.
         SERVICES
SUMMARY OF REQUEST: To hold a public hearing for public input for the
Michigan Natural Resources Trust Fund Grant Application regarding the first
phase of proposed upgrades to Smith-Ryerson Park. The application has been
made available for viewing prior to the public hearing at the City Clerk’s Office
and on the City’s website. The application is to build an ADA compliant
restroom with concession stand, an irrigation system through out the park, a
large picnic shelter with two grills and thirty-two twelve foot picnic tables,
reconstruction of the basketball courts with concrete, new poles, backboards,
rims, and timed lighting system, a pedestrian trail along the creek, the
rehabilitation of the existing restroom building to be for storage only, and a set of
aluminum bleachers.
FINANCIAL IMPACT: There is no impact for the 2007 budget year. If the
application is approved, then this would need to be budgeted for the 2008
budget year.
BUDGET ACTION REQUIRED: The total estimated cost for the upgrades is
$577,829. The City is required to have a 25% match of those costs (excluding
cents) which would be $144,458. Therefore, this would need to be budgeted in
2008.
STAFF RECOMMENDATION: To hold the public hearing, approve submittal of the
grant application, the 25% match, and to have the Mayor and Clerk sign the
resolution.
Public comments were heard from Leland Davis, 1148 Terrace Manor, stating
that this is a good cause.
Motion by Commissioner Carter, second by Commissioner Davis to close the
Public Hearing and approve the submittal of the grant application.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
           and Carter
            Nays: None
MOTION PASSES
2007-29 NEW BUSINESS:
      A. Transfer Retiree Healthcare Assets to Municipal Employees Retirement
         System. FINANCE
SUMMARY OF REQUEST: The City has now completed the transfer of all pension
assets (formerly administered through the City’s pension boards) to MERS
(Municipal Employees Retirement System of Michigan). As you know, the City
also has set aside funds (approximately $13.5 million) for retiree healthcare
benefits. Historically these funds have been “piggybacked” onto the pension
assets for investment purposes. Staff is recommending that the City’s retiree
healthcare assets also be transferred to MERS.
FINANCIAL IMPACT: The total MERS asset base is $6 billion which means they are
able to diversify and achieve economies of scale in investments to a far greater
extent than we can by ourselves. We expect that our participation in this
program will improve investment returns and grow the accumulated assets so
that we are better positioned to pay future retiree healthcare costs without
severe disruption to the operating budget.
BUDGET ACTION REQUIRED: No current year budget impact. The expected
higher returns achievable through MERS will reduce the impact on future
budgets and help the City achieve full funding of these long-term liabilities.
STAFF RECOMMENDATION: Approval of the RETIREE HEALTH FUNDING VEHICLE
UNIFORM RESOLUTION and authorization for staff to transfer the City’s
accumulated retiree healthcare funds to MERS.
COMMITTEE RECOMMENDATION: At its last official meeting, the City’s pension
boards voted to recommend to the City Commission the transfer of retiree
healthcare assets to MERS.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the resolution and the transfer of the City’s accumulated retiree healthcare funds
to MERS.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Shepherd, Spataro, and
           Warmington
            Nays: None
MOTION PASSES
     B. Army Corps of Engineers Supplemental Agreement - Pier Safety. CITY
        MANAGER
SUMMARY OF REQUEST: To approve Supplemental Agreement No. 1 to the Army
Corps of Engineers Lease No. DACW35-1-91-3004. This supplemental agreement
will incorporate the South Breakwater of the Muskegon Harbor into the lease to
allow the placement of pier safety devices.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Supplemental Agreement.
Motion by Commissioner Carter, second by Vice Mayor Gawron to approve the
Supplemental Agreement.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, Gawron, and
           Shepherd
           Nays: None
MOTION PASSES
     C. Concurrence with the Housing Board of Appeals Notice and Order to
        Demolish the Following: PUBLIC SAFETY
        1211 Third Street (Area 10)
        536 Oak - Garage (Area 11)
Item C has been removed per request of staff.
PUBLIC PARTICIPATION: Various comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:10 p.m.


                                         Respectfully submitted,




                                         Ann Marie Becker, MMC
                                         City Clerk

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