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CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 13, 2016
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, September 13, 2016.
Pastor Wally Reames, Central Assembly of God, opened the meeting with
prayer, after which the Commission and public recited the Pledge of Allegiance
to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood, Commissioners Dan
Rinsema-Sybenga, Ken Johnson, Debra Warren, and Willie German, Jr., City
Manager Franklin Peterson, City Attorney John Schrier, and Deputy City Clerk
Kimberly Grimm.
Absent: Commissioner Byron Turnquist
Ron Jenkins from the Muskegon Lake Hawks updated the City Commission and
the audience on the team’s achievements and the upcoming season.
2016-69 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the August 23, 2016 Regular
City Commission Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Request to Fly Breast Cancer Ribbon Flags City Clerk
SUMMARY OF REQUEST: As they have done in the past, Tempting Tables is
requesting the use of City flag poles at the Farmer’s Market, Hackley Park, City
Hall, Shoreline Drive, Root Park, Hartshorn Marina, and the Fire Station for the
month of October to bring greater awareness of breast cancer to our
community.
FINANCIAL IMPACT: None
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BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the request.
D. Transfers to Engineering, Public Improvement and Arena Funds
Finance
SUMMARY OF REQUEST: During the close out of fiscal year 2015-16 and based
on the financial results for the fiscal year ended June 30, 2016, staff transferred
$50,000 from the general fund to the engineering services fund to eliminate a
fund balance deficit in that fund. In addition, staff transferred $750,000 from the
general fund to the public improvement fund to eliminate a fund balance
deficit in that fund and $250,000 to support the arena fund.
FINANCIAL IMPACT: $50,000 from the general fund to engineering services
fund, $750,000 from the general fund to the public improvement fund, and
$250,000 from the general fund to the arena fund.
BUDGET IMPACT REQUIRED: None
STAFF RECOMMENDATION: Formal approval of the transfers from the general
fund to the engineering services fund, public improvement fund, and arena
fund, effective June 30, 2016.
E. Bid Tabulation for HVAC Condenser Replacement at L.C. Walker Arena
Annex City Manager and Finance Director
SUMMARY OF REQUEST: Two bids were received from contractors to perform
work to replace the HVAC condenser at the arena annex building. Northside
Heating, Cooling, and Refrigeration, Inc. was the lowest cost from the bids
received. Therefore, based on cost and quality of work, staff requests the
approval of Northside Heating, Cooling & Refrigeration, Inc. for the replacement
of the HVAC condenser at the L.C. Walker Arena Annex.
FINANCIAL IMPACT: Total proposed cost of $40,020 to replace the HVAC
condenser at the arena annex building.
BUDGET ACTION REQUIRED: Fiscal year 2016-17 budget to be adjusted to
reflect the need to replace the HVAC condenser at the L.C. Walker Arena
Annex.
STAFF RECOMMENDATION: To approve the bid received from Northside
Heating, Cooling, & Refrigeration, Inc. for the replacement of the HVAC
condenser at the L.C. Walker Arena Annex.
H. Community Relations Committee Recommendations for Various City
Boards and Committees City Clerk
SUMMARY OF REQUEST: Accept the recommendations from the Community
Relations Committee to accept the resignation of Rosalind Ford from the
Citizen’s District Council and appoint Lisa Judge to the Citizen’s District Council.
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FINANCIAL IMPACT: None
STAFF RECOMMENDATION: Approval
STAFF RECOMMENDATION: Approval
COMMITTEE RECOMMENDATION: Approval
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the Consent Agenda as presented with the exception of Items C, F, & G.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
2016-70ITEMS REMOVED FROM CONSENT AGENDA:
C. Supplemental MERS Contribution Finance
SUMMARY OF REQUEST: One of the most significant financial challenges facing
the city and many other governments across the nation is the issue of pension
funding. Relative to many other cities, Muskegon’s pension plans have
historically been considered well-funded. However, in recent years, due in part
to lower than expected investment returns and changes in actuarial
assumptions, the funding levels of the city’s pension plans have decreased.
Paying down the city’s existing pension legacy costs will present budget
challenges for years to come.
For the fiscal year that ended June 30, 2016, staff conservatively budgeted for
an increase in pension costs. During the course of fiscal year 2015-16, an
additional $206,831.82 was expensed and accumulated for payment towards
the city’s pension costs. At this time staff believes it is appropriate to take this
opportunity to make a $206,831.82 supplemental payment (above the actuarial
computed amount) to MERS. This is money that the city would be required to
pay to MERS eventually. Paying early, while the city is in a position to do so,
makes time an ally (instead of an enemy) and may help to ease some pressure
on future city budgets.
FINANCIAL IMPACT: $206,831.82 supplemental payment to MERS.
$201,831.82 will be paid from monies already set aside for MERS in the collector
fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to make a supplemental
$206,831.82 payment to MERS no later than October 31, 2016.
Motion by Commissioner German, second by Commissioner Johnson, to
authorize staff to make a supplemental $206,831.82 payment to MERS no later
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than October 31, 2016
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
F. Request to Create a New Neighborhood Enterprise Zone District at 316
Morris Street Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 147 of the Michigan Public Acts
of 1992, Hinman Lake, LLC has requested to create a new Neighborhood
Enterprise Zone district for the parcel at 316 Morris Street. Properties located in
this NEZ district will be eligible to apply for NEZ certificates, which will lower the
residential property taxes for rehab construction. Notice letters were sent to the
taxing jurisdictions on July 1 and a public hearing was held on July 12. State law
requires that the resolution must be adopted at least 60 days after the notice
letters were sent. This project will include 19 condo units that will be located on
the 6th and 7th floors of the current building.
FINANCIAL IMPACT: No financial impact at this point. However, being in a
district will allow them to apply for a rehab NEZ certificate, which will freeze the
building at its pre-rehabilitated rate for 1 to 15 years.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the new NEZ
district.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the new Neighborhood Enterprise Zone District at 316 Morris Street.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga, and
Johnson
Nays: None
MOTION PASSES
G. Special Projects Coordinator City Manager
SUMMARY OF REQUEST: To create the position of Special Project Coordinator
and authorize staff to begin the process of filling the position.
FINANCIAL IMPACT: The position will be advertised at Range VII-B with a
salary range of $43154 to $57,110.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To create the position of Special Project
Coordinator and authorize staff to begin the process of filling the position.
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Motion by Commissioner German, second by Commissioner Warren, to create
the position of Special Project Coordinator and authorize staff to begin the
process of filling the position.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Johnson, and
Gawron
Nays: None
MOTION PASSES
2016-71 UNFINISHED BUSINESS:
A. Request to Add Parcels to the City’s Existing Groundwater Ordinance
Planning & Economic Development – SECOND READING
SUMMARY OF REQUEST: The City has received an application to designate 52
parcels under the water supplies ordinance. These parcels are associated with
the former Mobil Oil Pipeline – Sisson Avenue at McCracken Street. The
ordinance prohibits the use of groundwater wells and secondary water supplies
under certain circumstances and in certain locations, to prevent exposure to
contaminated groundwater, as well as to prevent wells from influencing the
movement of contaminated water. Notice was sent to the affected addresses
prior to this meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the ordinance amendment to add
the additional 52 parcels.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner German,
approve the ordinance amendment to add the additional 52 parcels.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Johnson, Gawron, and
Hood
Nays: None
MOTION PASSES
2016-72 NEW BUSINESS:
A. Request to Create a New Neighborhood Enterprise Zone District at 965
W Western Avenue & 920 Washington Avenue Planning & Economic
Development
SUMMARY OF REQUEST: Pursuant to Public Act 147 of the Michigan Public Acts
of 1992, P & G Holdings NY, LLC has requested to create a new Neighborhood
Enterprise Zone (NEZ) district for the parcels at 965 West Western Avenue and
920 Washington Avenue. Properties located in this NEZ district will be eligible to
apply for NEZ certificates which will lower the residential property taxes for rehab
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construction. Notice letters were sent to the taxing jurisdictions on July 1 and a
public hearing was held on July 12. State Law requires that the resolution must
be adopted at least 60 days after the notice letters were sent. This project will
include 120 new market rate apartment units.
FINANCIAL IMPACT: No financial impact at this point. However, being in a
district will allow them to apply for a rehab NEZ certificate, which will freeze the
building at its pre-rehabilitated rate for 1 to 15 years.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the new NEZ
district.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the new Neighborhood Enterprise Zone District at 965 West Western and
920 Washington Street.
ROLL VOTE: Ayes: Rinsema-Sybenga, Gawron, Hood, and Warren
Nays: German and Johnson
MOTION PASSES
B. LED Street Light Assessment City Manager
SUMMARY OF REQUEST: To set a public hearing for October 11, 2016 for the
creation of a proposed city-wide streetlight assessment district.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To set the public hearing for October 11, 2016.
Motion by Commissioner Johnson, second by Commissioner Warren, to set a
public hearing for October 11, 2016 for the creation of a proposed city-wide
streetlight assessment district.
ROLL VOTE: Ayes: Rinsema-Sybenga, Johnson, Gawron, Hood, and Warren
Nays: German
MOTION PASSES
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission adjourned at 7:11 p.m.
Respectfully Submitted,
Kimberly Grimm, Deputy City Clerk
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