City Commission Minutes 04-24-2007

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                         APRIL 24, 2007
    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, April 24,
2007.
   Mayor Warmington opened the meeting with a prayer from Reverend
Michael Borgert from First Christian Reformed 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,
Commissioner Chris Carter, Kevin Davis, Clara Shepherd, Lawrence Spataro, and
Sue Wierengo, City Manager Bryon Mazade, City Attorney John Schrier, and City
Clerk Ann Marie Becker
2007-34 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the April 9th Commission
Worksession, and the April 10th Regular Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      B. Rezoning Request for Property Located at 527 Young Street. PLANNING
         & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone the property located at 527 Young
Street, from I-1, Light Industrial district to I-2, General Industrial district.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the request.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their April 12th meeting. The vote was unanimous,
with B. Smith absent.
      C. Donation of Bicycles - Muskegon County Health Department. PUBLIC
         SAFETY
SUMMARY OF REQUEST: The Director of Public Safety is requesting Commission
approval to donate four abandoned/recovered bicycles to the Muskegon
County Health Department. This summer the Health Department will be piloting
a community bicycle program within the City. The program will work as follows:
A person pays a $5 registration fee and is issued an identification card. When a
bicycle is needed, the registrant is issued a bicycle and a lock. The registrant is
responsible for returning the bicycle to the Health Department, where the
bicycles will be stored.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the agreement.
      D. Beach Leveling. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to enter into a three-year contract with
JSN Excavating to perform the beach leveling contract for the years 2007, 2008,
and 2009 at a cost of $41,500, $45,000, and $47,500 respectively (total cost of
the contract is $134,000). JSN was the lowest responsible bidder.
FINANCIAL IMPACT: Cost $41,500 in 2007, $45,000 in 2008, and $47,500 in 2009.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to enter into a contract with JSN.
      F. Purchase of 2265 Lincoln. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the purchase of 2265 Lincoln from the U. S.
Department of Housing and Urban Development for $1 through its “Good
Neighbor” program.     Under the Good Neighbor program guidelines, a
municipality can purchase a house for $1, if a property that is for sale by Housing
and Urban Development is on the market for six months or more.
After 2265 Lincoln is obtained by the City, the Community & Neighborhood
Services Department will contract to have the current two-unit structure
converted back to a single-family unit.
FINANCIAL IMPACT: The dollar will come from Community and Neighborhood
Services HOME program fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request.
      G. Consideration of Bids for Knollwood Ct., Beach Street to End (H-1625).
         ENGINEERING
SUMMARY OF REQUEST: Award the contract for Knollwood Ct. from Beach Street
to End to Felco Contractors, Inc. of Muskegon, MI since they were the lowest
responsible bidder with a bid price of $73,385.
FINANCIAL IMPACT: The construction cost of $73,385 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to Felco Contractors, Inc.
Motion by Commissioner Carter, second by Commissioner Davis to approve the
Consent Agenda as read minus items E and H.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd,
           and Spataro
            Nays: None
MOTION PASSES
2007-35 ITEMS REMOVED FROM THE CONSENT AGENDA:
      E. 2007 Water Treatment Chemical Bids. PUBLIC WORKS
SUMMARY OF REQUEST:       Recommend endorsement of lowest responsible
bidders to supply aluminum sulfate, sodium hypochlorite, and fluoride for the
Water Filtration Plant.
FINANCIAL IMPACT: Annual cost of $116,943 (based on average annual water
pumped to mains).
BUDGET ACTION REQUIRED: None at this time. These chemicals are budgeted
annually.
STAFF RECOMMENDATION: Staff recommends the Mayor and City Commission
endorse the low bids received and the contract renewal and enter into
contracts with US Aluminate, Rowell Chemical, and Lucier Chemical for
aluminum sulfate, sodium hypochlorite, and fluoride respectively.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the 2007 water treatment chemical bids.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
           and Gawron
            Nays: None
MOTION PASSES
                                                               ASSISTANT CITY
      H. Multiple Special Event Liquor License Request.
         MANAGER
SUMMARY OF REQUEST: Racquets Downtown Grill, located at 446 W. Western
Avenue is requesting an extension of their liquor license to be able to host an
outside entertainment area during their scheduled Taste of Muskegon/Main
Street Car Show event, scheduled for June 21st thru June 24th. The first license is
held by Party in the Park for the June 22nd date only.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
COMMITTEE RECOMMENDATION: This event was approved by the Leisure
Services Board at their April 16th meeting.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the multiple Special Event liquor license request from Racquets Downtown Grill.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
           and Carter
             Nays: None
MOTION PASSES
2007-36 NEW BUSINESS:
      A. 2007-2008 Healthcare Renewal. FINANCE
SUMMARY OF REQUEST: It is time to renew the City’s healthcare coverage for
the 2007-08 plan year. Healthcare costs for the City, like all employers, continue
to rise rapidly. Renewal rates for the City’s current healthcare program came in
at $817.28/employee/month, about 10% higher than the current rate ($744.43).
In dollar terms, this translates into an annual cost increase of $218,550. Staff
believes certain adjustments must be made to bring the amount of cost
increase down to a more manageable level given our budget uncertainties and
the likelihood of state revenue sharing cuts. Accordingly, we are proposing a
healthcare benefit renewal that includes the following adjustments:
   1. Increase in office co-pay visits from the current $10/visit to $15/visit
   2. Increase in the co-pay for emergency room care from $25 to $50
   3. Increase in the co-pay for “urgent care” (e.g. Norton Medi Center) from
         $10 to $25
   4. Increase in the co-pay for brand name prescriptions from $25 to $30
         (generic Rx co-pays remain $15)
FINANCIAL IMPACT: With these adjustments, the City’s costs will increase 6.20%
($130,320) – a still significant, but manageable level.
BUDGET ACTION REQUIRED: None. With the proposed adjustments, the
healthcare cost increase will be within budget.
STAFF RECOMMENDATION: Approval of the healthcare renewal with Priority
Health incorporating the benefit changes outlined above.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the 2007-2008 healthcare renewal with the adjustments.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Shepherd, Spataro, and
           Warmington
            Nays: None
MOTION PASSES
                                              COMMUNITY & NEIGHBORHOOD
      B. Resolution to Sell 1122 Spring.
         SERVICES
SUMMARY OF REQUEST: To approve the resolution to sell the City-owned house
at 1122 Spring to Mr. William Holland of 596 Howell, Apt. B, Muskegon Heights, MI
for the price of $76,800 minus subsidy and some closing cost.
The City of Muskegon through the State tax reversion process obtained the
house at 1122 Spring. The house was rehabilitated as a part of Operation R & R
(Reawakening and Resurgence) also known as “Spring Street Reawakening”.
The intent of Operation R & R is to rehabilitate 10 abandoned homes in the
targeted area in one fiscal year. The house at 1122 Spring is the 8th home to be
rehabilitated this year.
The Hollands will be purchasing the house at 1122 Spring as an owner-occupied
structure. Operation R & R is continuing the City’s aggressive neighborhood
revitalization efforts.
FINANCIAL IMPACT: The revenues derived from the sale will be deposited in the
City’s HOME account.
BUDGET ACTION REQUIRED: To approve the sale.
STAFF RECOMMENDATION:      To approve the resolution and instruct the
Community & Neighborhood Services office to complete the sale.
COMMITTEE RECOMMENDATION: Operation R & R was approved by the Land
Reutilization Committee. The City Commission approved Operation R & R and
the Spring Street project.
Motion by Commissioner Shepherd, second by Commissioner Spataro to
approve the resolution to sell 1122 Spring to Mr. William Holland.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, Gawron, and
           Shepherd
            Nays: None
MOTION PASSES
      C. City – MDOT Agreement for the Reconstruction of Second, First,
         Jefferson and Market Streets. ENGINEERING
SUMMARY OF REQUEST:       To approve the contract with MDOT for the
reconstruction of Second, First, Jefferson and Market Streets within the
Downtown Development (former Mall Area) between Clay, Morris, Third and
Terrace and to approve the resolution authorizing the Mayor and City Clerk to
sign the contract.
FINANCIAL IMPACT: MDOT’s participation is limited to the Federal funds of
$1,111,900 and $177,900 of State funds for a total grant of $1,289,800.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approve the contract and resolution and authorize
the Mayor and Clerk to sign both.
Motion by Commissioner Carter, second by Commissioner Davis to approve the
MDOT agreement for the reconstruction of Second, First, Jefferson and Market
Streets.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter,
           and Davis
            Nays: None
MOTION PASSES
      D. City - MDOT Agreement for Federal Money Loan to Reconstruct Phase II
         of the Downtown Development. ENGINEERING
SUMMARY OF REQUEST:           To approve the contract with MDOT for the
reconstruction of Second, First Jefferson and Market Streets within the Downtown
Development (former Mall Area) and to approve the resolution authorizing the
Mayor and City Clerk to sign the contract.
As part of the “jobs today’s program” the State made available to local
governments the ability to advance construct projects on the 2007 and 2008
transportation plan by lending the federal allocation for those projects as long
as the local governments agreed to two conditions;
   1. The projects would be advertised and awarded a year ahead of their
         scheduled time.
   2. The local governments would have to enter into the agreement with the
         State which outlines the terms and conditions of the loan.
The advantage on this project is that this whole agreement is merely a paper
work matter since the City could not have spent any money against the federal
funds to accrue any interest since the actual construction will take place in the
2008-2009 fiscal years.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None at this time. The City’s share of the cost will
come out of the Major Street and water, sewer funds as shown in the 2007
budget.
STAFF RECOMMENDATION: Approve the contract and resolution and authorize
the Mayor and Clerk to sign both.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the City-MDOT agreement for the Federal money loan to reconstruct Phase II of
the Downtown Development.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and
           Wierengo
           Nays: None
MOTION PASSES
     E. City - MDOT Agreement for the Reconstruction of Creston Street,
        Laketon to Evanston. ENGINEERING
SUMMARY OF REQUEST:          To approve the contract with MDOT for the
reconstruction of Creston between Laketon and Evanston and to approve the
resolution authorizing the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT: MDOT’s participation is limited to the Federal funds of
$219,559. The estimated total construction cost is $313,000.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approve the contract and resolution and authorize
the Mayor and Clerk to sign both.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
City-MDOT agreement for the reconstruction of Creston Street, Laketon to
Evanston.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd,
           and Spataro
           Nays: None
MOTION PASSES
     F. Concurrence with the Housing Board of Appeals Notice and Order to
        Demolish the Following: PUBLIC SAFETY
        1885 McIlwraith
        1178 Chestnut (Area 13) REMOVED PER STAFF REQUEST
        460 Houston (Area 10)
        369 Isabella (Area 11)
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that these structures are unsafe,
substandard, public nuisances 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: General.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:        To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Spataro, second by Commissioner Shepherd to concur
with the Housing Board of Appeals notice and order to demolish 1885 McIlwraith,
460 Houston, and 369 Isabella.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
           and Gawron
            Nays: None
MOTION PASSES
      G. Easement for Underground Electric Line.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to approve
the easement for an underground electric line for Fisherman’s Landing with
Consumers Energy Company.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
           and Carter
            Nays: None
MOTION PASSES
2007-37 ANY OTHER BUSINESS:
Commission commented on the Renaissance Place. This will be placed on the
next Worksession.
Motion by Commissioner Davis, second by Commissioner Spataro to formally
indicate to MISHDA the Commission’s disapproval on their approval of this
project based on the fact that the City Commission turned down the PILOT.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Shepherd, Spataro, and
           Warmington
            Nays: None
MOTION PASSES
Commissioner Carter thanked Leisure Services on their youth basketball
program.
PUBLIC PARTICIPATION: Various comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:35 p.m.


                                        Respectfully submitted,




                                        Ann Marie Becker, MMC
                                        City Clerk

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