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CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 11, 2004
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, May 11,
2004.
Mayor Warmington opened the meeting with a prayer from Reverend
Piggue from Emmanuel Tabernacle Church of God in Christ 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 Bill Larson, Commissioners
Chris Carter, Kevin Davis, Stephen Gawron, Clara Shepherd, and Lawrence
Spataro, City Manager Bryon Mazade, City Attorney John Schrier and City Clerk
Gail Kundinger.
2004-44 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, April 27, 2004.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Request to Fly the Norwegian Flag. CITY CLERK
SUMMARY OF REQUEST: The Sons of Norway request permission to fly the
Norwegian Flag outside City Hall on Monday, May 17th to celebrate Norwegian
Independence Day.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval.
D. Title V Grant Application. LEISURE SERVICES
SUMMARY OF REQUEST: To authorize the Title V Planning Committee to submit a
grant application for the Delinquency Prevention Program.
FINANCIAL IMPACT: Local $45,000 match to come from in-kind services from the
City and two other agencies.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve.
E. Sale of Buildable Vacant Lot at 1275 Dudley Avenue. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 1275
Dudley Avenue (designated as parcel number 24-610-000-0145-00) to Kenyatta
& Cynthia Drones of 760 Emerald Street, Apt. F, Muskegon, MI. The lot is 143 x
132 ft. and is being offered to the Drones for $9,000. They plan to use the land
for the construction of a 2,562 sq. ft. single-family home with a 3-stall attached
garage. The True Cash Value (TCV) for the property listed in the Assessor’s office
is $12,000, so our price is set at $9,000 which is 75% of that amount.
FINANCIAL IMPACT: The sale of this lot for construction of a new home will
generate additional tax revenue for the City and will place the property back
on the City’s tax rolls thus relieving the City of continued maintenance costs.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution and deed.
COMMITTEE RECOMMENDATION: The Land Reutilization Committee (LRC)
recommended approval of this request at their April 27, 2004, meeting.
F. Health Care Opt-Out. FINANCE
SUMMARY OF REQUEST: Last fall, in response to employee suggestions, we
explored the possibility of generating additional savings through the healthcare
opt-out program. Under the opt-out program employees who do not need City
health coverage receive a cash payment. The City, in turn, saves by not having
to pay premiums for the employee. Last fall, not enough new participants could
be found to reach the break-even point of 8 new employees. However, higher
healthcare premiums have pushed the break-even point down to 6 new
enrollees and several employees have requested that we reconsider this
program. This revised proposal is to increase the opt-out payment amount from
$1,300 per year to $3,000 per year provided that six new participants enroll to
make it at least a break-even proposition for the city.
FINANCIAL IMPACT: Healthcare savings will depend on the number of new
program participants. Six new participants are required for the City to “break-
even”.
BUDGET ACTION REQUIRED: If enough new participants enroll in the program,
budget adjustments may be needed in the departmental budgets where
program participants are located.
STAFF RECOMMENDATION: Authorize an increase in the annual opt-out
payment from the current $1,300 to $3,000 effective June 1 provided six new
opt-out participants have signed up for the program. If there are not enough
new participants signed up by June 1, the program will remain at its current
level.
H. Appointment to Housing Board of Appeals. PUBLIC SAFETY
SUMMARY OF REQUEST: This is to request that the City Commission approve the
appointment of Ed Simmons to the Housing Board of Appeals.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Due to the withdrawal of Edward Sheard from the
Housing Board of Appeals, the appointment of Ed Simmons is recommended.
Motion by Commissioner Davis, second by Commissioner Carter to approve the
Consent Agenda minus items g and c.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd,
Spataro
Nays: None
MOTION PASSES
2004-45 ITEMS REMOVED FROM CONSENT AGENDA
C. Liquor License Request – Great Lakes Entertainment, LLC, 441 W.
Western Avenue. CITY CLERK
SUMMARY OF REQUEST: The Liquor Control Commission seeks local
recommendation on a request from Great Lakes Entertainment, to transfer
ownership of the 2000 Class C-SDM licensed business located in escrow at 1679
E. Sherman Blvd., from Bill Knapp’s to 441 W. Western Avenue. They are also
requesting a new Dance-Entertainment Permit and additional Bar Permit.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval as long as license holder completes
renovations and obtains occupancy permit from the City.
Motion by Commissioner Carter, second by Vice Mayor Larson to approve the
Liquor License request from Great lakes Entertainment, to transfer ownership of
the 2000 Class C-SDM from licensed business located in escrow at 1679 E.
Sherman Blvd., from Bill Knapp’s to 441 W. Western Ave, as long as compliance
are met.
ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington,
Carter
Nays: None
MOTION PASSES
G. Approval of Resolution to Sell 503 Octavius. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the resolution and instruct the Community
and Neighborhood Services Department to complete the sale of the structure
located at 503 Octavius to Mr. Monte Griggs to be used as an owner-occupied
single family residence.
FINANCIAL IMPACT: The HOME fund will receive approximately $70,000 in
program income.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and instruct the Mayor
and Clerk to sign the quit claim.
COMMITTEE RECOMMENDATION: The City Commission and Land Reutilization
Committee both approved this project.
Motion by Commissioner Shepherd, second by Commissioner Gawron to
approve the resolution to sell 503 Octavius to Mr. Monte Griggs and instruct the
Mayor and Clerk to sign the quit claim.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shephed, Spataro,
Warmington
Nays: None
MOTION PASSES
2004-46 PUBLIC HEARINGS:
A. Request to Establish an Obsolete Property District – PCJ Enterprises, LLC.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, PCJ Enterprises, LLC, 749 Moulton Avenue, Muskegon, Michigan, has
requested the establishment of an Obsolete Property District. The district would
be located at 441 W. Western Avenue, Muskegon, MI, the former Brunswick
Building. Total capital investment for this project is $800,000. The project will
result in the creation of 40 new jobs in the City.
FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the property
taxes would be frozen for the duration of the certificate.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the resolution establishing an Obsolete
Property District for 441 W. Western Avenue, Muskegon, MI.
The Public Hearing opened at 5:44pm to hear comments from the public.
Comment was heard from Peter Johnson, 749 W. Western, Muskegon.
Motion by Commissioner Spataro, second by Vice Mayor Larson to close the
Public Hearing at 5:51 and to approve the resolution establishing an Obsolete
Property District for PCJ Enterprises of 441 W. Western Ave.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter,
Davis
Nays: None
MOTION PASSES
B. Request to Issue an Obsolete Property Certificate – PCJ Enterprises, LLC.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, PCJ Enterprises, LLC, 749 Moulton Avenue, Muskegon, MI, has requested
the issuance of an Obsolete Property Certificate for the property located at 441
W. Western Avenue (former Brunswick Building), Muskegon, MI. The building is
presently unoccupied, but will be rehabilitated for a restaurant/bar in one half
of the building and the other half of the building used for commercial or retail
opportunities. Total capital investment for this project is $800,000. The project
will result in bringing 40 jobs to the City of Muskegon. Because of these new jobs
and the amount of investment, the applicant is eligible for a twelve (12) year
certificate.
FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the property
taxes would be frozen for the duration of the certificate.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the resolution issuing an Obsolete
Property Certificate for 441 W. Western Avenue, Muskegon, MI for a term of
twelve (12) years.
The Public Hearing opened at 5:52pm to hear comments from the public. No
comments were heard at this time.
Motion by Vice Mayor Larson, second by Commissioner Spataro to close the
Public Hearing at 5:54 and to approve the request to issue an Obsolete Property
Certificate to PCJ Enterprises, LLC, 441 W. Western Ave.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis,
Gawron
Nays: None
MOTION PASSES
2004-47 UNFINISHED BUSINESS:
A. Rezoning Request for Property Located at 407 Marquette Avenue (SE
Corner of Marquette Ave. and Wood St.) PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone property located at 407 Marquette
Ave., at the SE corner of Marquette Ave. and Wood St., from R-1, Single-Family
Residential to B-1, Limited Business.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends denial of the request due to lack
of compliance with the future land use map and Master Land Use Plan.
COMMITTEE RECOMMENDATION: The Planning Commission voted to deny the
request at their 1/15 meeting. Commissioners Spataro, Aslakson, Johnson and
Sartorius voted for denial, Commissioners Michalski and Smith voted against
denial, and Commissioners Mazade and Warmington abstained. T. Harryman
was absent.
Motion by Vice Mayor Larson, second by Commissioner Carter to return the
rezoning request for property at 407 Marquette Ave. back to the Planning
Commission for rehearing.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Larson
Nays: Shepherd, Spataro, Gawron
MOTION PASSES
B. Request for Extension of Deadlines for Former Lakos Property.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: At the April 13, 2004 meeting, the City Commission
requested that staff prepare an extension agreement with the Holiday Inn for
the former Lakos property. The extension agreement allows for the owner of the
property to have until October 1, 2004 to present plans for the development of
the property to the City. Construction must then begin by April 1, 2005 and be
completed by September 1, 2005.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Amendment Agreement, granting
an extension of time to the owners of the former Lakos property, and authorize
the Mayor and Clerk to sign.
Motion by Vice Mayor Larson, second by Commissioner Davis to approve the
Amendment Agreement granting an extension of time to the owners of the
former Lakos property and authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson,
Shepherd
Nays: None
MOTION PASSES
2004-48 NEW BUSINESS:
A. Liquor License Request – Mason Street Market, 248 Mason Street. CITY
CLERK
SUMMARY OF REQUEST: The Liquor Control Commission seeks local
recommendation on a request from Ben Roberts, Jr., for a New Specially
Designated Distributor License (SDD) to be held in conjunction with a proposed
New Specially Designated Merchant License (SDM).
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Denial.
Motion by Commissioner Spataro, second by Vice Mayor Larson to deny the
liquor license request for Mason Street Market, 248 Mason St.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd,
Spataro
Nays: None
MOTION PASSES
B. Graffiti Ordinance. LEISURE SERVICES
SUMMARY OF REQUEST: To adopt the graffiti ordinance that would allow the
City to enter private property to remove graffiti.
FINANCIAL IMPACT: Estimated at $10,000 to be allocated from the City’s
contingency account.
BUDGET ACTION REQUIRED: Budget will be adjusted for the next quarterly report.
STAFF RECOMMENDATION: Approve.
Motion by Commissioner Shepherd, second by Vice Mayor Larson to adopt the
graffiti ordinance that would allow the City to enter private property to remove
graffiti.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro,
Warmington
Nays: None
MOTION PASSES
C. Request to Establish a Pay Range - Police Records Supervisor. PUBLIC
SAFETY
SUMMARY OF REQUEST: Police Department staff requests that the Commission
consider our request for an increase in the pay grade for the Police Records
Supervisor position. As a result of organizational changes within the department,
the position of Administrative Aide was eliminated and has been replaced with
that of the Police Records Supervisor. The new job description has been
approved by the Civil Service Commission. The requested pay-grade change is
as follows:
Administrative Aide: $27,538 - $36,720
Police Records Supervisor $33,698 - $44,933
FINANCIAL IMPACT: As a result of salary savings from open positions, funds are
available for this pay grade change.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of this request.
Motion by Vice Mayor Larson, second by Commissioner Shepherd to refer item
back to staff for further consideration.
ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington,
Carter
Nays: None
MOTION PASSES
D. Agreement with the County of Muskegon – Ferry Project CITY
MANAGER
SUMMARY OF REQUEST: To enter into an agreement with the county of
Muskegon for financial participation ($200,000) for the ferry project.
FINANCIAL IMPACT: $200,000 from the County of Muskegon.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the agreement.
Motion by Commissioner Spataro, second by Commissioner Gawron to enter
into an agreement with the County of Muskegon for financial participation
($200,000) for the ferry project.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter,
Davis
Nays: None
MOTION PASSES
The Regular Commission meeting for the City of Muskegon was adjourned at
7:23pm.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk