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CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 25, 2006
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 25,
2006.
Mayor Warmington opened the meeting with a prayer from Pastor David
Rogers from the Zion 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,
Commissioner Sue Wierengo, Chris Carter, Kevin Davis, Clara Shepherd, and
Lawrence Spataro, City Manager Bryon Mazade, City Attorney John Schrier, and
City Clerk Gail Kundinger.
2006-39 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the April 10th Commission
Worksession, and the April 11th Regular Commission Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Resolution for Charitable Gaming License. CITY CLERK
SUMMARY OF REQUEST: Bishop John L. Bankhead Daycare and Learning Center,
696 Leonard Avenue, is requesting a resolution recognizing them as a non-profit
organization operating in the City for the purpose of obtaining a gaming license.
They will be hosting a Texas Holdem at the Muskegon Race Track on May 21,
2006. Proceeds will go toward fixing up their Church. They have been
recognized as a 501(c)(3) organization by the State.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval
C. Sale of Buildable Vacant Lot at 181 E. Walton. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 181 E.
Walton Avenue (Parcel #24-205-206-0001-00) to J2 Properties Development &
Construction Company LLC. The lot is 66 x 140 ft. and is being offered to J2
Properties Development & Construction Company LLC for $3,000. A single-
family home will be constructed. The proposed home will be approximately
1,400 square feet and consist of 2 stories, a basement, 3 bedrooms, and a two-
stall garage.
FINANCIAL IMPACT: The sale of this lot for the construction of a single-family
home will generate additional tax revenue for the City and will place the
property back on the City’s tax rolls thus relieving the City of continued
maintenance costs.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution and deed.
D. Application for Coastal Zone Management Grant from Michigan
Department of Environmental Quality. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: To approve the resolution authorizing staff to apply for a
grant in the amount of $10,000 from the Michigan Department of Environmental
Quality to update the City’s Waterfront Redevelopment Plan, which is a section
of the City’s Master Plan.
FINANCIAL IMPACT: $10,000 has already been budgeted for this year to go
toward updating the City’s Master Plan. This money will be used for match for a
project cost of $20,000.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution authorizing staff to
prepare and submit the grant application.
Motion by Commissioner Carter, second by Commissioner Davis to approve the
Consent Agenda as read.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and
Wierengo
Nays: None
MOTION PASSES
2006-40 NEW BUSINESS:
A. 2006 Healthcare Plan Renewal. FINANCE
SUMMARY OF REQUEST: To renew healthcare coverage with Priority Health for
2006-2007.
FINANCIAL IMPACT: Costs will increase 7.37% from $693.27 per employee per
month to $743.43 ($8,319/year to $8,921/year). Employees (in most bargaining
units) pay $520 per year towards the cost of this coverage. The renewal figures
are within the City’s projected budget for 2006.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION:
1. Renew contract with Priority retaining current benefit levels;
2. Phase out the current Rx reimbursement program effective June 1, 2006.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the 2006 healthcare plan renewal.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Carter
Nays: None
MOTION PASSES
B. First Quarter 2006 Budget Reforecast. FINANCE
SUMMARY OF REQUEST: At this time staff is transmitting the First Quarter 2006
Budget Reforecast which outlines proposed changes to the original budget that
have come about as result of changes in policy priorities, labor contracts,
updated economic conditions, or other factors. For the next meeting, an action
item will be placed on the agenda for adoption of the second quarter budget
reforecast together with any additional changes deemed necessary by
Commissioners.
FINANCIAL IMPACT: First quarter proposed changes to the General fund are
relatively minor and include:
• Federal grants increased $19,926
• Projected recreation program revenues decreased $20,000
• Interest income increased $115,000 reflecting generally higher interest rates
• $2,500 allocated to support the Lakeside Business district
• $3,500 increase to City Clerk budget
The most recent information from the state indicates that our original 2006 state
shared revenue projection ($4,680,217) remains a good estimate. A state
revenue conference is scheduled for May at which time further information may
emerge. Additionally, significant changes to other funds are mostly in the area
of capital improvements and include:
• Adjustment to street projects (and related w/s components) mostly based on
grant decisions;
• Increase in projected cost of new fire station from $2,800,000 to $3,500,000
BUDGET ACTION REQUIRED: Self-explanatory.
STAFF RECOMMENDATION: The City Commission should review the Reforecast to
ensure it reflects their policy initiatives. At the next City Commission meeting,
staff will request formal approval of the Reforecast and related budget
amendments.
Motion by Commissioner Spataro, second by Commissioner Carter to adopt the
First Quarter 2006 Budget Reforecast.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter,
and Davis
Nays: None
MOTION PASSES
C. Transfer of Administration for Current Retirees to MERS. FINANCE
SUMMARY OF REQUEST: LaSalle Bank is selling off the part of its business that
currently handles pension payroll responsibilities for the City. Staff believes this is
a good time to move administrative responsibility for current retirees to the MERS
system. This is consistent with the direction set for active employees with transfer
of active non-union and police personnel to MERS.
FINANCIAL IMPACT: MERS provides a cost-effective solution for retirement
system administration. As the City faces revenues declines and service
cutbacks, it is essential that we seek out opportunities to maintain or improve
service levels while lowering costs. MERS provides such an opportunity.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the move of current retirees to MERS.
COMMITTEE RECOMMENDATION: The Pension Board considered this matter at
their April 12th meeting and voted to recommend the change to the City
Commission.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to approve
the move of current retirees to MERS.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
and Gawron
Nays: None
MOTION PASSES
D. Approval of Storm Water Pollution Prevention Initiative. PUBLIC WORKS
SUMMARY OF REQUEST: As a requirement of its Wastewater Discharge Permit
with the State, the City of Muskegon is required to submit a Storm Water Pollution
Prevention Initiative. This document contains commitments to actions to
prevent pollution of Muskegon Lake and Mona Lake form municipal storm
drains.
FINANCIAL IMPACT: Costs for actions will be determined in 2006 so that these
can be budgeted in 2007 and 2008.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the Storm Water Pollution Prevention
Initiative as written.
Motion by Commissioner Wierengo, second by Commissioner Carter to approve
the Storm Water Pollution Prevention Initiative.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, Gawron, and
Shepherd
Nays: None
MOTION PASSES
E. Resolution to Sell 510 Creston. COMMUNITY & NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the resolution to sell the City-owned house
at 510 Creston to Ms. Linda Meinel of 565 Lake Forest Lane, Apt. K-10. The house
is being sold to Ms. Meinel for the appraised cost of sixty-seven thousand dollars
($67,000) minus a fifteen thousand dollar ($15,000) subsidy. The City of
Muskegon purchased the house at 510 Creston from the U.S. Department of
Housing and Urban Development on the open market. After the purchase was
completed, the house was totally rehabilitated including the total remediation
of lead. Since that time, the house has been marketed to qualified first-time
homebuyers.
FINANCIAL IMPACT: The program income derived from the sale will be
deposited in the City’s HOME account.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and the sale of 510
Creston to Ms. Meinel.
COMMITTEE RECOMMENDATION: The purchase of 510 Creston and the
rehabilitation of the structure were approved by the Commission in 2004.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the sale of 510 Creston to Ms. Linda Meinel for the stated price.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd,
and Spataro
Nays: None
MOTION PASSES
F. Resolution to Sell 221 Walton. COMMUNITY & NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the resolution to sell the City-owned house
at 221 Walton to Mr. and Mrs. Marcus Robertson, of 3232 Roosevelt Road for the
expected appraised value of $145,000 minus the $50,000 subsidy. The house at
221 Walton is a part of the second phase of the Walton Street Renaissance AKA
Hilltop View, which was started last summer and will be totally completed in the
next 30 days. With the sale of this property at 221 Walton, four of the six homes in
the development will have been purchased. The Walton Street project is a
partnership between the City of Muskegon, Fifth Third Bank and Neighborhood
Investment Corporation.
FINANCIAL IMPACT: The program income derived from this transaction will be
deposited in the City’s HOME account.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and the sale of 221 Walton
to Mr. and Mrs. Marcus Robertson.
COMMITTEE RECOMMENDATION: The Walton Street Project was approved by
both the City Commission and the Land Reutilization Committee.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the sale of 221 Walton to Mr. and Mrs. Marcus Robertson.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
G. Application for United States Department of Agriculture Grant for
Design Work for the Farmer’s Market. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: To approve the resolution and authorize staff to apply
for a grant in the amount of $50,000 from United States Department of
Agriculture for design work for the Farmer’s Market.
FINANCIAL IMPACT: None, no match is required.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and authorize staff to
apply for a grant in the amount of $50,000.
Motion by Commissioner Shepherd, second by Commissioner Spataro to
approve the application for the United States Department of Agriculture grant for
design work for the Farmer’s Market.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and
Wierengo
Nays: None
MOTION PASSES
H. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish the Following: PUBLIC SAFETY
1. 460 Wood
2. 1349 Sixth (Area 10)
3. 762 Amity (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 above mentioned
structures are unsafe, substandard, a public nuisance and that they be
demolished within thirty 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 Spataro, second by Vice Mayor Gawron to concur with
the Housing Board of Appeals notice and order to demolish 460 Wood and 1349
Sixth.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Carter
Nays: None
MOTION PASSES
Motion by Commissioner Spataro, second by Vice Mayor Gawron to concur with
the Housing Board of Appeals notice and order to demolish 762 Amity.
Motion and second amended to concur with the Housing Board of Appeals
notice and order to demolish 762 Amity if after 30 days from today there has not
been an interior inspection that has been done by the City Inspections
Department and at that point and time if so desired they can bring it back
before this body.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter,
and Davis
Nays: None
MOTION PASSES
I. Former Lakos Property. CITY MANAGER
SUMMARY OF REQUEST: To consider a request from the owners of the Holiday Inn
to remove the requirement to redevelop the former Lakos property. This would
clear the title so a sale to another party could occur.
FINANCIAL IMPACT: The current owners of the Holiday Inn agree to pay the City
$10,000 to remove the requirement to redevelop the former Lakos property.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: If the City Commission agrees to remove the
redevelopment requirements, the Mayor and Clerk and/or City staff should be
authorized to execute the appropriate documents. Further, the cleared title
should only be provided at the closing between the current owners of the
Holiday Inn and the new owners to ensure that a sale occurs.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the removal of the requirement to redevelop the former Lakos property and to
give clear title to the Holiday Inn but not to give clear title until the closure of the
sale of that property commences.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, and
Gawron
Nays: Davis
MOTION PASSES
ANY OTHER BUSINESS: Various comments were heard.
ADJOURNMENT: The City Commission Meeting adjourned at 6:33 p.m.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk