City Commission Minutes 01-27-2009

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                     JANUARY 27, 2009
    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, January 27,
2009.
    Mayor Warmington opened the meeting with a prayer from Vice Mayor
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,
Commissioners Steve Wisneski, Chris Carter, Clara Shepherd, Lawrence Spataro,
and Sue Wierengo, City Manager Bryon Mazade, City Attorney John Schrier,
and Deputy City Clerk Linda Potter.
HONORS AND AWARDS: Mayor Warmington and the Commission congratulated
Bob Burns on his retirement from The Muskegon Chronicle where he worked for
37 ½ years. Bob was recognized for his professionalism and wished the best in his
future endeavors.
2009-06 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the January 12th Commission
Worksession, and the January 13th Regular Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
                                                                   PLANNING &
      B. Trust Fund Grant Agreement for Smith-Ryerson Park.
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The City had received the Development Project
Agreement from the State. The Mayor had signed the agreement and it was
submitted to the State. The State has requested that we supply an updated
resolution for the Smith-Ryerson Park Improvements approving the agreement
and that the City guarantee the matching fund amount of $158,400 (27%) of the
grant amount.
FINANCIAL IMPACT: There is no impact for the 2009 budget year as this has
already been budgeted.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:       To approve the resolution approving the
Development Project Agreement for Smith-Ryerson Park Improvements and
guarantee the matching funds, and to have the Mayor and Clerk sign the
resolution.
      C. Ammunition Purchase. PUBLIC SAFETY
SUMMARY OF REQUEST: The Director of Public Safety is requesting approval of
the purchase of ammunition for the 2009 calendar year. The request includes
both practice and duty ammunition.
Two vendors replied to our bid requests: Michigan Police Equipment, 6521
Lansing Road, Charlotte, MI; and CMP Distributors, 6539 Westland Way, Lansing,
MI. Based upon the bids that were received, CMP Distributors is being
recommended.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: Provided for in 2009 budget.
STAFF RECOMMENDATION: Approval of this request.
      D. Assessing Services Contract. FINANCE
SUMMARY OF REQUEST: Since 1999 the City has contracted with the Muskegon
County Equalization Department for property tax assessing services. Providing
assessing services this manner avoids duplication of effort between the City and
the County and is more efficient than staffing our own assessing department.
For example, 1998 costs for supporting an in-house assessing operation were
$326,414. Inflating this figure at a conservative 4.5% annual rate to account for
employee wage and benefit growth results in an estimated 2009 cost for an in-
house operation of $529,722. The 2009 base year cost of the contract with the
County will be $459,300. The contract price is adjusted annually in accordance
with year-over-year changes in the City’s tax base.
The proposed contract term is three years with a two year extension possible;
the previous contract was for ten years. Other changes from the existing
contract mostly involve operational adjustments to better meet the needs of
City offices that utilize assessing data. Also, the contract provides for the
possibility that Equalization Department staff may be moved from City Hall to
enhance efficiency. However, this change requires discussion and formal
approval of the City Commission.
FINANCIAL IMPACT: The base year cost of the contract is $459,300.
BUDGET ACTION REQUIRED:        None at this time.   The contract cost is within
budget expectations.
STAFF RECOMMENDATION: Approval of the contract.
                                                                         PUBLIC
      E. New Cingular Wireless Amended Tower Lease Agreement.
         WORKS
SUMMARY OF REQUEST:           New Cingular Wireless PCS, LLC a Delaware
Corporation and the Department of Public Works have been in negotiations to
amend the 1998 lease agreement for the Nims Street and Marshall Street Water
Towers. The lease shall be amended to increase the current monthly rent, for
two sites, from $2,217 per month to $4,470 per month.
The amended lease will terminate the wireless phones and phone service
agreement (original value $1,170/month) previously provided to the City and will
allow New Cingular Wireless to install on each Water Tower up to a total of six
antennas.
FINANCIAL IMPACT: Monthly rental will begin on March 1, 2009, at $4,470 per
month to be escalated at the rate of 3% per year annually. Revenue generated
from the rental of the Tower space shall be used to offset Water Tank
Maintenance Projects and purchase Wireless Phones and service.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Amended Lease Agreement and to
authorize the Mayor and Clerk to sign.
      F. Request for Encroachment Agreement for 1788 Terrace Street, Rykes
         Bakery. ENGINEERING
SUMMARY OF REQUEST:         Rouwhorst Investments, LLC has submitted an
encroachment agreement application requesting your permission to attach a
28’ 3” awning to the existing mansard roof which will extend over the public
sidewalk.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the encroachment agreement for
installing the awning as per the plan.
      G. Transportation Improvements Program Submittal for 2012-2013 Projects.
         ENGINEERING
SUMMARY OF REQUEST: Authorize staff to submit the list of projects to the West
Michigan Shoreline Regional Development Commission for inclusion in the FY
2012 – 2013 Transportation Improvement Program (TIP). Projects submitted will
be considered for Federal and State transportation funding. Adoption of the
resolution is required as part of the submittal to commit the local match should
funds become available.
FINANCIAL IMPACT: None at this time, however, a local match will be required
should we receive a grant for a particular project.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the project submittal and resolution.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the Consent Agenda as read.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
           and Wisneski
            Nays: None
MOTION PASSES
2009-07 ITEM MOVED FROM NEW BUSINESS:
      H. Request for Encroachment Agreement for 746 W. Laketon Ave. -
         Wayne’s Deli. ENGINEERING
SUMMARY OF REQUEST:         The Bog’s Corporation (DBA Wayne’s Deli) has
submitted an encroachment agreement application requesting your permission
to replace two of the existing signs with one improved 5’ by 6’ sign which will
extend over the public sidewalk along the north side of Laketon Avenue.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the encroachment agreement for
replacing signs as per the plan, providing that they follow the supplemental
conditions included in the agreement.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the encroachment agreement for replacing the signs as per the plan for 746 W.
Laketon Avenue, Wayne’s Deli.
ROLL VOTE: Ayes:     Gawron, Shepherd,       Spataro,   Warmington,    Wierengo,
           Wisneski, and Carter
            Nays: None
MOTION PASSES
2009-08 UNFINISHED BUSINESS:
      A. Concurrence with the Housing Board of Appeals Notice and Order to
         Demolish 254 Amity Avenue. PUBLIC SAFETY
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structure located at 254
Amity, Area 11, is unsafe, substandard, a public nuisance and that it be
demolished within 30 days. It is further requested that administration be directed
to obtain bids for the demolition of the structure and that the Mayor and City
Clerk be authorized and directed to execute a contract for demolition with the
lowest responsible bidder.
FINANCIAL IMPACT: CDBG Funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:        To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Spataro, second by Commissioner Carter to leave on
the table until the second meeting in February to give Commissioner Carter
further time to work with the proposed lender.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter,
           and Gawron
            Nays: None
MOTION PASSES
      B. Request to Revoke the Obsolete Property Rehabilitation Exemption
         Certificate at 790 Terrace. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Promised Land Associates, 3355 Merriem Dr., Muskegon
Heights, was issued an Obsolete Property Rehabilitation Exemption Certificate
for the property located at 790 Terrace Street. The timeline to complete the
rehabilitation was one year, giving them until June 14, 2006, to do so. However,
a number of unforeseen problems occurred during this time, making the
applicant unable to complete the rehabilitation. The applicant then requested
a time extension in November, 2007, and was granted additional time to
complete the rehabilitation. The new deadline to finish the rehabilitation was
August 22, 2008. The case was brought back to Commission in November, 2008,
and another extension was granted, giving the certificate holder until January,
2009, to show the ability to complete the project. Total capital investment for
this project was stated to be $1,200,000 and was to include the addition of an
elevator and an additional stairway, along with upgrades to the structural,
mechanical, and electrical systems to meet current code requirements. To
date, none of these projects have been completed.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:        To revoke the Obsolete Property Rehabilitation
Certificate.
Motion by Vice Mayor Gawron, second by Commissioner Carter to revoke the
Obsolete Property Rehabilitation Exemption Certificate for 790 Terrace.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, Gawron,
           and Shepherd
            Nays: None
MOTION PASSES
2009-09 NEW BUSINESS:
      A. Proposed Water Bond Refunding. FINANCE
SUMMARY OF REQUEST: The bond rating on the City’s water system was recently
upgraded by Standard & Poor’s from A- to AA-. This, combined with the current
interest rate environment, affords us the opportunity to refund two currently
outstanding water system debt issues and achieve significant interest savings. It
is proposed that $5,815,000 of Series 1999 and $925,000 of Series 1993 bonds be
refunded at this time. A recent analysis shows that these bonds can be
refunded at today’s lower interest rates with present value savings to the City of
$390,930. This equates to 5.80% of the outstanding principal, or $41,501 average
annual savings over the remaining life of the bonds. A general rule of thumb is
that PV savings should equal at least 2% of bond principal in order to proceed
with a refunding.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the ordinance to initiate and authorize
the proposed bond refunding. A second commission action (sales resolution)
will be required to complete the transaction. If numbers change to the extent
the refunding no longer makes economic sense, the plug can be pulled at that
time.
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the proposed water bond refunding by approving the ordinance to initiate and
authorize the proposed bond refunding.
ROLL VOTE: Ayes: Warmington, Wierengo, Wisneski, Carter, Gawron, Shepherd,
           and Spataro
            Nays: None
MOTION PASSES
      B. Towing Contract. PUBLIC SAFETY
SUMMARY OF REQUEST: Proposals have been accepted for the towing contract
with the City. This contract will go into effect on February 1, 2009. Proposals
were submitted by the following companies:
      1. All Pro Towing and Recovery, 2930 E. Apple, Muskegon 49442
      2. Baxter’s Towing and Storage, 5333 Airline, Muskegon 49444
      3. Campbell’s Towing, 2462 South Getty, Muskegon Heights 49444
      4. Central Towing, 710 Alberta, Muskegon 49441
      5. Reliable Towing, 1288 Ninth Street, Muskegon 49440
Based upon the proposals that were submitted, approval of a contract with
Campbell’s Towing, 2462 South Getty, is being recommended.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of this request.
Motion by Commissioner Carter, second by Vice Mayor Gawron to approve the
towing contract with Campbell Towing, 2462 S. Getty.
ROLL VOTE: Ayes: Wierengo, Wisneski, Carter, Gawron, Shepherd, and Spataro
            Nays: Warmington
MOTION PASSES
      C. Commercial Redevelopment Tax Abatement                   Districts   Policy.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the Commercial Redevelopment Tax
Abatement Districts Policy for the City of Muskegon.
FINANCIAL IMPACT: Qualified commercial rehabilitation and redevelopment
projects would be eligible for tax exemptions under Michigan Public Act 255 of
1978. The abatements would be available to restored, replacement and new
facilities in designated areas in the city. Restored and replacement facilities
would be able to freeze the property tax at its pre-rehabilitated value,
effectively allowing the rehabilitation to be property tax free, with the exception
of school operating taxes, for up to 12 years. New facilities would have their
millages cut in half, except state education tax, and levied against the current
taxable value of the building, for up to 12 years.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Commercial Redevelopment Tax
Abatement Districts Policy.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the Commercial Redevelopment Tax Abatement Districts Policy as described.
ROLL VOTE: Ayes: Wisneski, Carter, Gawron, Shepherd, Spataro, Warmington,
           and Wierengo
            Nays: None
MOTION PASSES
      D. Engineering Services Agreement with Sidock Group to Evaluate the
         Seawall at the Site Known as the Amoco Property. ENGINEERING
SUMMARY OF REQUEST: Authorize staff to enter into an engineering services
agreement with Sidock Group out of Muskegon to provide a comprehensive
evaluation of the existing seawall as well as present alternatives on how to
address the failure in a portion of the existing wall. The evaluation will take into
account three main possibilities:
      1. Removal of the entire seawall and replacement with rip rap.
      2. Repairing/replacing the failed sections and reinforcement of the
         sections that did not fail.
     3. A combination of the above alternatives.
Sidock’s proposal was comprehensive and contained a good understanding at
a reasonable fee of $7,200. The other two proposals were submitted by Prein &
Newhof ($7,987) and Brechting ($3,135). Brechting’s proposal considers only
repairing the existing seawall.
FINANCIAL IMPACT:     The engineering fee of $7,200 for the study/evaluation
phase at this time.
BUDGET ACTION REQUIRED: None, the cost is budgeted for.
STAFF RECOMMENDATION:       Authorize staff to enter into an agreement with
Wade Sidock Group.
Motion by Vice Mayor Gawron, second by Commissioner Carter to authorize
staff to enter into an agreement with Wade Sidock Group for the evaluation of
the seawall at the site known as the Amoco Property.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
           and Wisneski
           Nays: None
MOTION PASSES
     E. Terminate the Arena Management Contract. CITY MANAGER
SUMMARY OF REQUEST:         To confirm the termination of the operations
management contract with Arena Management Group (AMG). Notification of
the termination has been sent to AMG, pursuant to the contract.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:      To affirm the termination of the operations
management contract with AMG.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to affirm the
termination of the operations management contract with AMG for the operation
of the L. C. Walker Arena.
ROLL VOTE: Ayes:     Gawron, Shepherd,     Spataro,   Warmington,   Wierengo,
           Wisneski, and Carter
           Nays: None
MOTION PASSES
     F. Arena and Concession Management Agreements. CITY MANAGER
SUMMARY OF REQUEST: To enter into agreements with J. S. Hockey Enterprises,
Inc. to manage the L. C. Walker Arena and to manage concession within the
facility.
FINANCIAL IMPACT: The agreements will operate under the same terms and
conditions of the previous agreements.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the agreements and authorize the
Mayor and Clerk to sign them.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the agreements and authorize the Mayor and Clerk to sign them
regarding the J. S. Hockey Enterprises management of the L. C. Walker Arena
and the concessions within the facility.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter,
           and Gawron
            Nays: None
MOTION PASSES
      G. Assignment of Ground Lease – 1601 Beach Street. CITY MANAGER
SUMMARY OF REQUEST: To approve the assignment and assumption of the
ground lease at 1601 Beach Street from J. P. Lawrence, LLC to CJ’s on the
Beach, LLC.
FINANCIAL IMPACT: None, terms of the lease remain the same.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request and authorize the Mayor
and Clerk to sign the appropriate documents.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to approve
the assignment and assumption of the ground lease at 1601 Beach Street from J.
P. Lawrence, LLC to CJ’s on the Beach, LLC.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, Gawron,
           and Shepherd
            Nays: None
MOTION PASSES
      I. Concurrence with the Housing Board of Appeals Notice and Order to
         Demolish the Following: PUBLIC SAFETY
         1305 Jefferson Street – Garage (Area 10)
         922 S. Getty Street
         616 Catherine Avenue (Area 11)
         355 W. Grand Avenue (Area 11)
         267 Iona Avenue – Garage (Area 11)
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within 30 days. It
is further requested that administration be directed to obtain bids for the
demolition of the structures and that the Mayor and City Clerk be authorized
and directed to execute a contract for demolition with the lowest responsible
bidder.
FINANCIAL IMPACT: CDBG Funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:        To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Carter, second by Commissioner Spataro to concur
with the Housing Board of Appeals notice and order to demolish, 1305 Jefferson
Street garage, 922 S. Getty Street, 616 Catherine Avenue, 355 W. Grand Avenue,
and 267 Iona Avenue garage.
ROLL VOTE: Ayes: Warmington, Wierengo, Wisneski, Carter, Gawron, Shepherd,
           and Spataro
           Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Various comments were made.
ADJOURNMENT: The City Commission Meeting adjourned at 6:27 p.m.


                                         Respectfully submitted,




                                         Ann Marie Becker, MMC
                                         City Clerk

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