City Commission Packet 06-14-2011

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  CITY OF MUSKEGON
   CITY COMMISSION MEETING
                       JUNE 14, 2011
 CITY COMMISSION CHAMBERS @ 5:30 P.M.
                            AGENDA


CALL TO ORDER:
PRAYER:
PLEDGE OF ALLEGIANCE:
ROLL CALL:
HONORS AND AWARDS:
INTRODUCTIONS/PRESENTATION:
CONSENT AGENDA:
  A. Approval of Minutes. CITY CLERK
  B. Loan for Street Projects. FINANCE
  C. Approval of the Fair Housing Agreement with Muskegon County.
     COMMUNITY & NEIGHBORHOOD SERVICES
  D. Memorandum of Understanding-Justice Assistance Grant.     PUBLIC
     SAFETY
  E. Approval of the Use & Maintenance of City Owned Property at 325
     Jackson Avenue by the Jackson Hill Neighborhood Association.
     PLANNING & ECONOMIC DEVELOPMENT
PUBLIC HEARINGS:
  A. 2011-12 Budget. FINANCE
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
NEW BUSINESS:
  A. Final Determination for 2011-2012 CDBG/HOME Grants and Submission
     of Action Plan to HUD. COMMUNITY & NEIGHBORHOOD SERVICES
       B. Application for Special Liquor License (American Red Cross). PUBLIC
          SAFETY
       C. Removal of Street Lights in the Nims and Campbell Neighborhoods.
          PUBLIC WORKS
       D. Special Event Request – Muskegon Summer Celebration (Annual
          Event). PLANNING & ECONOMIC DEVELOPMENT
       E. Ruddiman Creek Project Presentation.
   ANY OTHER BUSINESS:
   PUBLIC PARTICIPATION:
   Reminder: Individuals who would like to address the City Commission shall do the following:
   Fill out a request to speak form attached to the agenda or located in the back of the room.
    Submit the form to the City Clerk.
   Be recognized by the Chair.
   Step forward to the microphone.
   State name and address.
   Limit of 3 minutes to address the Commission.
   (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)

   CLOSED SESSION:
   ADJOURNMENT:
ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who
want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann
Marie Becker, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or TDD:
(231) 724-4172.
Date:     June 14, 2011
To:       Honorable Mayor and City Commissioners
From:     Ann Marie Becker, City Clerk
RE:       Approval of Minutes




SUMMARY OF REQUEST:             To approve minutes of the City
Commission Meeting that was held on Tuesday, May 24, 2011.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                         MAY 24, 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, MI at 5:30 p.m., Tuesday, May 24, 2011.
Vice Mayor Gawron 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 Sue Wierengo, Steve Wisneski, Chris Carter, Clara Shepherd, and
Lawrence Spataro, City Manager Bryon Mazade, City Attorney John Schrier, and
City Clerk Ann Marie Becker.
2011-35 HONORS AND AWARDS:
     A. 2010 Outstanding Citizenship Awards.
Commissioner Wierengo presented Outstanding Citizenship Awards to Connie
Nesbary and Dave Kendall.
2011-36 CONSENT AGENDA:
     A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the May 10th City Commission
Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
     B. 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 current Agreement concludes on June 30, 2011. Staff
has negotiated a new Agreement that extends for two years (through June 30,
2013). In addition, Norton Shores agrees to provide the maximum allowable
CDBG costs per program year to the City of Muskegon, minus $1,000. This more
accurately reflects the true administrative costs of the City of Muskegon. The
only other significant change is that the City of Muskegon staff will do the IDIS
reporting for Norton Shores. We currently do the IDIS reporting for the City of
Muskegon and adding the City of Norton Shores will save time in staff
communication between the two Cities in regards to reporting.
FINANCIAL IMPACT: The City of Norton Shores will pay the maximum allowable
CDBG costs per program year to the City of Muskegon, minus $1,000 to
administer their CDBG program.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Agreement and authorize the Mayor
and City Clerk to sign.
      C. 2011-2012 Michigan Municipal League Membership Dues. CITY CLERK
SUMMARY OF REQUEST: Approval to pay the 2011-2012 MML dues in the amount
of $8,886. The MML is continuing the freeze on the membership dues, and the
elimination of the Environmental Affairs Assessment.
FINANCIAL IMPACT:     MML Dues           $8,078
                      Legal Defense Fund $ 808
                      Total:             $8,886
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
      E. Resolution Approving Energy Efficiency Grant Application. PLANNING
         & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the request to submit a grant application to
the Michigan Bureau of Energy Systems for an energy efficiency grant funded
through the Federal Energy Efficiency and Conservation Block Grant program.
The City will be applying on behalf of the LC Walker Arena to upgrade and
retrofit current lighting systems throughout the building with energy efficient LED
lighting systems. This project will tie in with the lighting upgrades already
completed at the arena that were funded by the Energy Efficiency and
Conservation Block Grant program. The project cost is estimated at around
$50,000 and the applicant is required to match at least 10%. The lessees of the
arena will be responsible for providing the match money for this project.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request and sign the resolution.
Motion by Commissioner Carter, second by Commissioner Wierengo to approve
the Consent Agenda as read minus item D.
ROLL VOTE: Ayes:      Wisneski, Carter, Gawron,          Shepherd,        Spataro,

                                        2
            Warmington, and Wierengo
            Nays: None
MOTION PASSES
2011-37 ITEM REMOVED FROM THE CONSENT AGENDA:
      D. Gaming License Request from Muskegon Charter Boat Association.
         CITY CLERK
SUMMARY OF REQUEST: The Muskegon Charter Boat Association, 3040 Lakeshore
Drive, Muskegon, 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 Carter, second by Commissioner Wierengo to approve
the gaming license request from Muskegon Charter Boat Association.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
           and Wisneski
            Nays: None
MOTION PASSES
2011-38 NEW BUSINESS:
      A. Summer Recreation Evening Activities Program (Justice Assistance
         Grant)-YMCA. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The City of Muskegon received a Justice Assistance
Grant (JAG) in 2009. A portion of the funds were to be used for evening
recreation for youth over the course of two summers. The program was
implemented last year and staffed by the Leisure Services and Police
Departments. It was a successful program with youth between the ages of 13
and 25 engaged in basketball, volleyball, dance, movies and other activities.
The program will be hosted at the Muskegon High School, again, this summer.
Since the Leisure Services staff is no longer available to oversee the program,
staff has been working with the YMCA in an effort to transition the oversight of
the program to them. Fortunately, they have agreed to manage the program
and have submitted the proposal. In addition, they will be able to offer
swimming this summer (not available last year as improvements were being
made to the pool).
FINANCIAL IMPACT: The proposal from the YMCA totals $60,003.47, which is the
amount remaining in the JAG funds for this program.

                                       3
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the proposal from the YMCA for the
“Summer Recreation Evening Activities Program” and authorize staff to enter
into a formal agreement with the YMCA.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the Summer Recreation Evening Activities Program with the YMCA and direct
staff to work with the YMCA to accommodate older ages.
ROLL VOTE: Ayes:     Gawron, Shepherd,    Spataro,   Warmington,   Wierengo,
           Wisneski, and Carter
           Nays: None
MOTION PASSES
     B. Resolution of Support for Lake Effect Boat Week – August 15-21, 2011.
        PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Roger Zuidema of Lake Effect Boating has requested
that the City of Muskegon support Lake Effect Boat Week by approving a
resolution. Lake Effect Boat Week will include many activities, highlighting
Muskegon Lake.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution declaring August 15-21,
2011, as Lake Effect Boat Week and authorize the Mayor and Clerk to sign.
Motion by Vice Mayor Gawron, second by Commissioner Shepherd to approve
the resolution declaring August 15-21, 2011, as Lake Effect Boat Week and
authorize the Mayor and Clerk to sign it.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter,
           and Gawron
           Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 5:58 p.m.


                                         Respectfully submitted,




                                         Ann Marie Becker, MMC
                                         City Clerk


                                     4
Date: June 14, 2011
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Loan for Street Projects


SUMMARY OF REQUEST: The City is fortunate to receive many federal and state grants for street
improvements. Accepting these grants allows us to leverage local resources and get far more work done
than would be possible using local resources alone. We are at a point where we risk losing grant funds due
to declining local street resources (including CDBG). This request is to enter into a $2.0 million, 10-year loan
with 5/3 Bank in order to provide funds needed to match anticipated grants over the next 2-3 years.

Staff had considered issuing MTF bonds for this purpose. However, the issuance costs would be quite high
($57,000). Also, the bonding process is very time-intensive requiring preparation of official statements and
numerous other documents. Staff surveyed the three major banks having offices within the City to determine
if they were willing to do a 10-year loan with the City. Two of the banks indicated they would do such a loan
and 5/3 Bank had the most favorable terms.

The City’s financial advisor (RW Baird) ran comparisons of the two transactions (attached) and advises that
the bank loan is the preferred avenue. It is worth noting that the advisor would have received a substantial
fee if MTF bonds were issued.



FINANCIAL IMPACT:               $2.0 million borrowed for a period of 10 years at a fixed rate of 3.19%. Total
interest cost is projected to be $366,690.50.

As the attached shows, going the bank loan route provides for a much simpler transaction, avoids over
$50,000 in issuance costs, and produces an all-inclusive interest cost that is lower than issuing MTF bonds
(3.199% vs 3.208%)



BUDGET ACTION REQUIRED:                 Annual debt payments will be included in the Major/Local Streets
budgets for the next 10 years. Funds are budgeted in 2011-12 to cover the semi-annual interest payment
due February 1, 2012.



STAFF RECOMMENDATION:                     Authorize the Mayor, City Attorney and City staff to prepare and
execute necessary loan documents.



COMMITTEE RECOMMENDATION: None.
Commission Meeting Date: June 14, 2011


Date:       June 7, 2011
To:         Honorable Mayor and City Commission
From:       Community and Neighborhood Services Department
RE:         Approval of the Fair Housing Agreement with Muskegon County
__________________________________________________________________

SUMMARY OF REQUEST: The cities of Muskegon, Muskegon Heights, Norton
Shores and the County of Muskegon are entering into an agreement with the Fair
Housing Center of West Michigan to conduct fair housing testing in the County of
Muskegon per the recommendation of the 2009 Analysis of Impediments Report.

FINANCIAL IMPACT: Based on population, the City of Muskegon will pay
$9,350 of the $30,000 cost.

STAFF RECOMMENDATION:             To approve the attached Agreement and
authorize the Mayor to sign.
                              CITY COMMISSION MEETING
                                  Tuesday June 14, 2011




TO:            Honorable Mayor and City Commissioners

FROM:          Anthony L. Kleibecker
               Director of Public Safety

DATE:          June 7, 2011

SUBJECT:       Memorandum of Understanding-Justice Assistance Grant


SUMMARY OF REQUEST:

The Director of Public Safety requests that the Commission authorize the Director and
the City Manager to enter into an agreement with the City of Muskegon Heights and
Muskegon County in regards to the disbursement of the 2010 Justice Assistance Grant.
The money in this grant is shared by the three entities. The $34,698 in this grant will be
utilized for the prosecution of city ordinance cases primarily dealing with neighborhood
issues.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None


STAFF RECOMMENDATIONS:

Approval of this request.
Date:         June 14, 2011
To:           Honorable Mayor and City Commissioners
From:         Finance Director
RE:           Public Hearing – 2011-12 Budget




SUMMARY OF REQUEST: The City Commission may take action to adopt the
2011-12 budget with whatever changes or adjustments it deems necessary. City
ordinance requires the budget be adopted by the second regular City Commission
meeting in June.



FINANCIAL IMPACT: The budget sets forth the priorities and overall financial plan
for operations in the year 2011-12.



BUDGET ACTION REQUIRED: Adoption of the budget resolution provides the
legal appropriation authority necessary for City departments to conduct operations in
2011-12.



STAFF RECOMMENDATION: Receive public comments. Upon closing the public
hearing, the City Commission may decide to adopt the budget.



The 2011-12 proposed budget is now available at:
http://www.muskegon-mi.gov/2011-12-proposed-budget/
                              City Commission Meeting
                                Tuesday June 14, 2011



TO:            Honorable Mayor and City Commissioners

FROM:          Anthony L. Kleibecker, Director of Public Safety

DATE:          June 1, 2011

SUBJECT:    Application for Special Liquor License (American Red Cross)
________________________________________________________________________

Summary of Request:

The American Red Cross has submitted an application for a Special License for Beer,
Wine and Spirits for Consumption on the Premises for July 15 & 16, 2011. This license
is for a beverage service area to be located at Hot Rod Harley Motorcycle, 149 Shoreline
Drive.

The Foundation meets all of the requirements for the special license with the exception of
the request for “spirits”. Commission policy dictates that any special license request
which includes spirits must be considered and approved by the body.

Financial Impact:

None.

Budget Action Required:

None

Staff Recommendation:

Staff has no recommendation.
Date:     June 14, 2011

To:       Honorable Mayor and City Commissioners

From: Department of Public Works
RE:       Removal of Street lights in the Nims, & Campbell Neighborhoods



SUMMARY OF REQUEST:

Authorize staff to enter into agreement with Consumer energy to remove street lights in
the areas of Nims & Campell neighborhoods. C.E’s has offered to remove over 30-
street mid-block street lights at no cost to the City as part of their upcoming system
improvements.

The estimated annual savings to the City is over $6,000.

FINANCIAL IMPACT:
None



BUDGET ACTION REQUIRED:
None


STAFF RECOMMENDATION:
To authorize staff to enter into an agreement with Consumer Energy to remove the mid-
block street lights using the following procedure:
   1.   All major street intersections with another major street and/or local street must have a minimum of two (2)
        fixtures.
   2.   All local street intersections shall have a minimum of one (1) light fixture.
   3.   The spacing between fixtures on major streets (non-boulevard type) shall be no more than 400 feet, and for
        a boulevard no more than 300 feet.
   4.   The spacing between fixtures on local streets shall be no more than 500 feet
   5.   The engineer will use his/her discretion and best judgment to override the above for geometric and unusual
        alignment such as curves and or obscure physical structures.



COMMITTEE RECOMMENDATION:
                        CITY COMMISSION MEETING DATE
                                June 14, 2011

Date:        June 7, 2011
To:          Honorable Mayor and City Commissioners
From:        Cathy Brubaker-Clarke, Director of Community &
             Economic Development
Re:          Special Event Request – Muskegon Summer Celebration
             (annual event)


SUMMARY OF REQUEST: Muskegon Summer Celebration has filed a special event
application for their annual festival to be held in downtown Muskegon June 30 through July
9 (but no events on July 5). Some of their requests require City Commission approval and
are listed on the attached sheet.



FINANCIAL IMPACT: Summer Celebration requests that equipment rental fees be
waived. In exchange, they will provide a pre-negotiated amount of concert tickets. The
exchange will be coordinated with the City Manager.



BUDGET ACTION REQUIRED: None



STAFF RECOMMENDATION:            Staff recommends approval, with the conditions listed on
the attached sheet.



COMMITTEE RECOMMENDATION:               None
                    2011 SUMMER CELEBRATION REQUESTS
                    REQUIRING CITY COMMISSION APPROVAL

1.   Permission to sell liquor (spirits) as part of their liquor license.
     Liquor drinks will be served in the tiki bar area of the concert venue. As in past
     years, the contracted vendor will control the amount of alcohol per drink.
     The second location is the area behind the main stage where pre-mixed signature
     drinks will be served.

     Staff recommends approval.


2.   Policy deviation for street closure times -- Clay Ave. between 3rd & 5th Streets.
     City Special Event Policy states that “For events utilizing any public roadway, no
     tents, booths, vendors, or equipment shall be set up in the roadway prior to 6:00
     p.m. the day before the event.” Summer Celebration is requesting to close Clay
     between 3rd & 5th at 11:00 p.m. on Wednesday June 29 so that they may set up
     their Bistro area.

     The reason for the earlier street closure time is to give the food concession vendors
     time to set up on Thursday, since set-up of those booths takes more time than the
     craft booths. They chose 11:00 p.m. on Wednesday so that cars will not be parked
     there Thursday morning.

     Staff recommends approval, with the condition that Summer Celebration provide
     advance written notice to property owners in the affected areas.


3.   Waiver of some City equipment rental fees & use of their own labor.
     Summer Celebration has requested the waiver of some City equipment rental fees.
     In exchange, they will provide the City with an equal monetary value in concert
     tickets, which shall be coordinated through the City Manager. They also request to
     use their own labor pool rather than City employees whenever possible.

     It is recommended that staff be allowed to make the final decision regarding rental
     fees, actual costs, and/or exchange of concert tickets, to be coordinated through the
     City Manager. In addition, staff recommends that if Summer Celebration personnel
     pick up items such as picnic tables, bleachers, and trash cans for distribution at the
     proper locations, the rental charges for those items will be waived.

     It is also recommended that staff review City personnel staffing levels with Summer
     Celebration staff, with the City making the final decision on the number of City staff
     needed for the event.

     These recommendations follow what was done for the 2009 and 2010 events.

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