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CITY OF MUSKEGON
CITY COMMISSION MEETING
AUGUST 23, 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, Michigan at 5:30 p.m., Tuesday, August 23, 2011.
Mayor Warmington opened the meeting with a prayer from Pastor Tim Cross
from the Living Word Church of Muskegon 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 Cummings.
2011-58 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the August 8th Commission
Worksession Meeting and the August 9th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. WEMET Vehicle Cost. CITY MANAGER
SUMMARY OF REQUEST: To approve an increase in WEMET vehicle cost from
$6,190 to $7,500 annually, per vehicle. The City uses four vehicles.
FINANCIAL IMPACT: Increase of $5,240 annually.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the request.
C. Bond Authorizing Resolution. FINANCE
SUMMARY OF REQUEST: As previously discussed, the City is borrowing $2.0 million
from Fifth-Third Bank to serve as local matching funds for various current and
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future street projects for which the City has received grant funding.
Proper public notice of the bond issuance has been given and the bond
authorizing resolution is the last action required by the City Commission to
complete this transaction.
FINANCIAL IMPACT: The loan will be for ten years at an interest rate of 2.98%.
BUDGET ACTION REQUIRED: The projected interest payment for 2011-12 is
included in the FY 2012 budget.
STAFF RECOMMENDATION: Approval of the bond authorizing resolution.
Motion by Vice Mayor Gawron, second by Commissioner Shepherd to approve
the Consent Agenda as presented.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Wisneski
Nays: None
MOTION PASSES
2011-59 NEW BUSINESS:
A. Revised LC Walker Management Agreement. FINANCE
SUMMARY OF REQUEST: The contract for management of the LC Walker Arena
was drafted in 2006 and subsequently assigned over to new management
companies on two separate occasions. However, the contract was not
significantly revised on either assignment. The new arena manager has
requested the management contract be revised to:
• Remove certain outdated provisions (e.g. club room financing)
• Remove requirement for the City to find replacement parking if the
Western Avenue parking lot was ever to be used for a purpose other than
parking
• Change some outdated terminology (e.g. “professional” hockey)
• Change item-dollar threshold for use of the arena maintenance fund from
$5,000 to $3,000
• Change the contract date to coincide with the City’s fiscal year
• Set a new contract termination date of 9/1/16
Staff has reviewed the proposed contract changes and recommends approval
of the revised management contract.
FINANCIAL IMPACT: There is no change to the $235,000 annual management
fee included in the current contract. However, the contract sets this amount as
the annual fee for each year of the contract. The prior contract allowed the
City to unilaterally reduce the fee if it was deemed by the City that the fee
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was excessive in light of the arena’s financial performance. Staff concurs that
this provision is no longer needed.
Staff has also obtained an opinion from bond counsel to assure the contract
changes do not impair the tax-exempt status of the County’s Quality of Life
bonds issued, in part, to finance arena renovations.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the proposed amended LC Walker
management contract with Logger Hockey, LLC.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to approve
the proposed amended LC Walker management contract with Logger Hockey,
LLC.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, and
Carter
Nays: None
Absent: Wisneski (stepped out of room)
MOTION PASSES
B. Pension Benefits for Public Safety Director. FINANCE
SUMMARY OF REQUEST: It has been traditional for the Public Safety Director (or,
in the past, Police Chief) to receive pension benefits comparable to those
received by Police Command Officers.
Currently, discrepancies exist in the pension multiplier and the normal retirement
age:
Benefit Police Command Public Safety Director
Pension Multiplier 3.00% 2.75%
Normal Retirement Age/Service 55/10 60/10
Early Retirement Age/Service 53/25 53/25
FINANCIAL IMPACT: MERS charges a one-time cost of $7,030 to value and
administer this benefit. A valuation of the benefit change will be performed to
determine the actuarial cost of the change.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize the City Manager to execute documents
to increase the level of the Public Safety Director’s pension benefit to the same
level as the Police Command Officers effective for retirements after August 1,
2011, pending acceptable results of the actuarial valuation.
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Motion by Vice Mayor Gawron, second by Commissioner Wierengo to authorize
the City Manager to execute documents to increase the level of the Public
Safety Director’s pension benefit to the same level as the Police Command
Officers effective for retirements after August 1, 2011, pending acceptable results
of the actuarial valuation.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter,
and Gawron
Nays: None
MOTION PASSES
C. East Muskegon Little League and No More Sidelines – Request to Waive
Equipment Rental Fees and Labor Charges for City Picnic Table Use.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: East Muskegon Little League is having their annual end
of summer party at Sheldon Park for No More Sidelines on August 24, 2011. No
More Sidelines is a non-profit organization providing children and young adults
with special needs, an opportunity to play sports year round and to participate
in community events and outings. They will be using approximately 15 City
picnic tables, which are already at the park now. They are requesting that the
City waive the $10 per table rental fee, as well as the labor charges for
transporting the tables back to DPW after the event.
FINANCIAL IMPACT: Equipment rental fees are $10 per table. City labor charges
are $60 per hour.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: None.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the requested waiver of fees.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, Gawron,
and Shepherd
Nays: None
MOTION PASSES
D. Michigan Irish Music Festival – Request to Waive Equipment Rental
Fees. PLANNING & ECONOMIC DEVELOPMENT
REMOVED PER REQUEST OF APPLICANT.
E. Church Without Shoes Event at Margaret Drake Elliott Park – Request to
Waive the Special Event Application Fee and the Picnic Shelter
Reservation Fee. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Bob Kuhn, applicant for the Church Without Shoes
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event being held September 4, 2011, is requesting that the City waive the picnic
shelter reservation fee and the special event application fee for this event.
Church Without Shoes has been held for years, but is normally tied in with the
Breakwater Festival (formerly Shoreline Spectacular). That organization notified
us recently that they are not having their festival this year and they have
withdrawn their special event request. Because Church Without Shoes is a
public event on City property, a special event application is required per City
policy. No City services are required for the event.
FINANCIAL IMPACT: $125 picnic shelter reservation cost; $50 special event
application fee.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: None.
Motion by Commissioner Carter, second by Commissioner Wisneski to approve
Church Without Shoes event at Margaret Drake Elliott Park and their request to
waive the special event application fee and the picnic shelter reservation fee.
ROLL VOTE: Ayes: Warmington, Wierengo, Wisneski, Carter, Gawron, Shepherd,
and Spataro
Nays: None
MOTION PASSES
F. Request to Fly Breast Cancer Ribbon Flags. CITY CLERK
SUMMARY OF REQUEST: Tempting Tables is requesting permission to fly breast
cancer ribbon flags the week of October 16th at the following locations:
Hackley Park
City Hall
Shoreline Drive
Central Fire Station
Hartshorn Marina
Root Park
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: None.
Motion by Commissioner Shepherd, second by Commissioner Carter to approve
the request to fly the breast cancer ribbon flags at the six locations.
ROLL VOTE: Ayes: Wierengo, Wisneski, Carter, Gawron, Shepherd, Spataro, and
Warmington
Nays: None
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MOTION PASSES
G. Designation of Voting Delegates for the Michigan Municipal League
Annual Business Meeting. CITY CLERK
SUMMARY OF REQUEST: To designate by action of the Commission, one of our
officials who will be in attendance at the Convention as an official
representative to cast the vote of the municipality at the annual meeting; and, if
possible, to designate one other official to serve as alternate.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Spataro, second by Commissioner Carter to designate
Commissioner Shepherd as the official representative and Ann Cummings as the
alternate.
ROLL VOTE: Ayes: Wisneski, Carter, Gawron, Shepherd, Spataro, Warmington,
and Wierengo
Nays: None
MOTION PASSES
H. Smartzone Agreement. CITY MANAGER
SUMMARY OF REQUEST: To consider an agreement that would assign the
Smartzone Agreement from Belmont Farms, LLC to Muskegon Lakefront, LLC.
FINANCIAL IMPACT: The development, or lack thereof, on the Smartzone
property impacts the ability to generate tax increments to pay the Smartzone
bonds. A Brownfield loan in the amount of $150,823.42 is outstanding, and the
second installment due on March 18, 2011, was $18,554.42.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: None.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the agreement that would assign the Smartzone Agreement from Belmont Farms,
LLC to Muskegon Lakefront, LLC.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, and
Wierengo
Nays: Wisneski
MOTION PASSES
2011-60 ANY OTHER BUSINESS:
Commissioner Spataro and Mayor Warmington commented on the
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success of the Hot Rod Power Tour this year and Muskegon has been asked to
host the tour Sunday, June 3, 2012.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the guarantee of the $35,000 event fee for the Hot Rod Power Tour to come back
to Muskegon in 2012.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo,
Wisneski, and Carter
Nays: None
MOTION PASSES
Mayor Warmington thanked Public Safety Director Tony Kleibecker for his years
of service and his leadership.
Commissioner Shepherd stated she would like to attend the National League of
Cities Conference this year and is in need of money for registration and air fair.
Commissioner Wisneski donated $100 so she needs $360 more. Commissioner
Carter donated $200, and Commissioner Wierengo will donate the needed
$160.
PUBLIC PARTICIPATION: Public comments received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:48 p.m.
Respectfully submitted,
Ann Marie Cummings, MMC
City Clerk
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