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CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 9, 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, May 9, 2006.
Mayor Warmington opened the meeting with a prayer from Reverend
Gerald Wahr from the McGraft Memorial Congregational 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
Deputy City Clerk Linda Potter.
2006-41 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, April 25, 2006.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Contract Renewal with Digital Spectrum Enterprises (DSE). ASSISTANT
CITY MANAGER
SUMMARY OF REQUEST: To authorize the Mayor to sign a two-year contract (with
the option to renew for a third) with Digital Spectrum Enterprise. Necessary
discussion and follow-up has been pursued with the City Commission regarding
this issue. The contract has been updated accordingly.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: This issue was discussed at the Commission
Worksession on April 10, 2006, and the Commission concurred with staff
recommendation as outlined.
C. 2006 Water Treatment Chemical Bids. WATER FILTRATION
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 $88,483 (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.
E. Lead Based Paint Abatement at 867 Williams. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the bid with Statewide Abatement, 1720 N.
Creston, North Muskegon, Michigan for the lead base paint abatement of the
City-owned home at 867 Williams for $25,845. The only other bid received was
from Specialty Builders PB Abatement Co. LLC, 2434 Annette, Muskegon,
Michigan for $34,400.
After the lead base paint abatement is complete, the structure will be totally
rehabilitated and then sold to a qualified low to moderate-income homebuyer.
FINANCIAL IMPACT: Cost of the abatement will be allocated from the 2004
HOME budget and from program income produced by the Community and
Neighborhood Services office.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the bid and authorize staff to contract
the work with Statewide Abatement.
COMMITTEE RECOMMENDATION: The Commission approved Community and
Neighborhood Services office to purchase this home from the private market in
2004.
F. Approval of Contractor for Completion of Rehabilitation of Structure at
867 Williams. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Specialty Builders PB
Abatement Co., LLC Construction, 2434 Annette, Muskegon, Michigan for the
completion of the rehabilitation of 867 Williams for $50,689. The structure was
obtained by the City of Muskegon through the private market, in an effort to
continue the neighborhood revitalization in the Angel neighborhood. After the
final rehabilitation is completed, the property will be sold to a qualified family in
accordance with the Community and Neighborhood Services offices
established guidelines, continuing the City’s aggressive neighborhood
revitalization efforts.
The Community and Neighborhood Services office received three other
proposals for this project:
Noble/Baldwin, Inc., 210 E. Broadway, Muskegon Heights - $61,558
Lewis Johnson Construction, 16076 Bonita, Grand Haven - $57,900
J2 Development & Construction Co., 109 E. Laketon, Muskegon - $55,217.96
FINANCIAL IMPACT: The funding for this project will be taken from the City’s
HOME funds from fiscal year 2004 and program income produced by the
Community and Neighborhood Services office.
BUDGET ACTION REQUIRED: None required
STAFF RECOMMENDATION: To approve the Community and Neighborhood
Services request.
COMMITTEE RECOMMENDATION: The Commission approved Community and
Neighborhood Services office to obtain this home through the open market;
and it was stated, at that time, that the home would be totally rehabilitated at a
later date.
G. Consideration of Bids - Benton Street & Williams Street, Chestnut Street
to Catawba Avenue (H-1584). ENGINEERING
SUMMARY OF REQUEST: Award the paving, using asphalt material, contract (H-
1584) for Benton Street & Williams Street, Chestnut Street to Catawba Avenue to
Jackson-Merkey Contractors, Inc. since they were the lowest bidder with a bid
price of $102,956.78.
FINANCIAL IMPACT: The construction cost $102,956.78 plus engineering cost
which is estimated at an additional 20%.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Award the contract to Jackson-Merkey Contractors,
Inc.
H. Agreement with Harbor Unitarian Universalist Congregation to Operate
at the Farmers Market. ASSISTANT CITY MANAGER
SUMMARY OF REQUEST: To authorize the Mayor to sign a one-year agreement
between the City of Muskegon and Harbor Unitarian Universalist Congregation
to sell Fair Trade Coffee, baked goods, tea, soft drinks and bottle water at the
Muskegon Farmers Market. The Church is a member of the Friends of the Market
group that was recently organized to enhance the aesthetic appeal of the
Market.
FINANCIAL IMPACT: None. Harbor Unitarian Universalist Congregation will pay
the City 10% of sale.
BUDGET ACTION REQUIRED: None
STAFF/COMMITTEE RECOMMENDATION: The Leisure Services Board is scheduled
to meet in July. In between meetings, the Director of Leisure Services
Department is authorized to take action on such request and advise the body
later. It is therefore, staff’s recommendation that the Commission approves this
request.
I. Changes to Industrial Facility Tax Abatement Contract. AFFIRMATIVE
ACTION/COMMUNITY & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve changes to the Industrial Facility Tax
abatement contract. The only change is in Section 1.3 with the addition of the
number of 14% for minority employment.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the changes to the contract.
COMMITTEE RECOMMENDATION: The Equal Opportunity Committee has
recommended the changes.
J. City – Michigan Department of Transportation Agreement for Western
Avenue, Third to Terrace Streetscape. ENGINEERING
SUMMARY OF REQUEST: To approve the contract with Michigan Department of
Transportation for streetscape (decorative concrete & street lights) work along
Western Avenue from Third Street to Terrace Street (including all necessary
related work) and to approve the resolution authorizing the Mayor and City
Clerk to sign the contract.
FINANCIAL IMPACT: Michigan Department of Transportation’s participation of
federal money is capped at $960,000 but not to exceed 80% of eligible cost.
The estimated total construction cost (with engineering) of the project, is
$1,195,000.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approve the agreement and resolution.
K. Commission Computer Access. CITY MANAGER
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the Consent Agenda with the exception of item D.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
2006-42 ITEM REMOVED FROM THE CONSENT AGENDA:
D. Approval of Contractor for Demolition of Structure at 280 Iona.
COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Press’s LLC, 8081 Holton
Duck Lake Road, Holton, Michigan for the demolition of the City-owned home
at 280 Iona for $3,730. Press’s was the only contractor that submitted a bid for
the project. After the demolition is completed, the Community and
Neighborhood Services office will solicit bids from qualified builders to construct
a new home on the site, in an effort to continue the City’s assertive
neighborhood revival efforts.
FINANCIAL IMPACT: The funding for the demolition will be taken from the City’s
HOME funds from fiscal year 2005 and program income.
BUDGET ACTION REQUIRED: None required.
STAFF RECOMMENDATION: To approve the Community and Neighborhood
Services request.
COMMITTEE RECOMMENDATION: The Commission approved Community and
Neighborhood Services office to obtain 280 Iona from the State of Michigan for
the original goal of rehabilitating the structure. But, after further study, it has
been determined that it will be in the City’s best interest to demolish the
structure and rebuild.
Motion by Commissioner Shepherd, second by Commissioner Carter to approve
the contract with Press’s for the demolition of 280 Iona.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington,
Wierengo
Nays: None
MOTION PASSES
2006-43 PUBLIC HEARINGS:
A. Request to Establish an Obsolete Property District - 1133 W. Western.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Kirksey Investment Corporation, 1204 W. Western, Muskegon, MI 49441,
has requested the establishment of an Obsolete Property District. The district
would be located at 1133 W. Western Avenue, Muskegon, MI. This project will
consist of rehabbing this building into a warehousing facility. Total capital
investment for this project is $500,000.
FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the property
taxes would be frozen for the duration of the certificate.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: None
The Public Hearing opened at 5:43 p.m. to hear and consider any comments
from the public. Joel Fitzpatrick and Dennis Kirksey explained the item and
answered Commissioner’s questions. No comments were heard from the public.
Motion by Commissioner Carter, second by Commissioner Spataro to close the
Public Hearing at 6:16 p.m. and establish an Obsolete Property District at 1133 W.
Western.
ROLL VOTE: Ayes: Gawron, Spataro, Warmington, Wierengo, and Carter
Nays: Davis and Shepherd
MOTION PASSES
B. Request to Issue an Obsolete Property Certificate - 1133 W. Western.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Kirksey Investment Corporation, 1204 W. Western, Muskegon, 49441 has
requested the issuance of an Obsolete Property Certificate for the property
located at 1133 W. Western, Muskegon, MI. Total capital investment for this
project is $500,000. The project consists of converting the building into a
warehousing facility. Because of the amount of investment, the applicant is
eligible for a 12-year certificate.
FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the property
taxes would be frozen for the duration of the certificate.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: None
The Public Hearing opened at 6:17 p.m. to hear and consider any comments
from the public. No public comments were heard.
Motion by Commissioner Spataro, second by Commissioner Carter to close the
Public Hearing at 6:18 p.m. and approve the request for an Obsolete Property
Certificate for 1133 W. Western.
ROLL VOTE: Ayes: Gawron, Spataro, Warmington, Wierengo, Carter, and Davis
Nays: Shepherd
MOTION PASSES
2006-44 NEW BUSINESS:
A. Change Order - Hartshorn Marina Renovation Phase III. ASSISTANT CITY
MANAGER
SUMMARY OF REQUEST: To post authorize staff’s approval (as provided for in the
City Purchasing Policy) of Change Order #3 with Great Lakes Docks and Marina,
the Project Contractor, in the amount of $52,475.70 as payment for the
repair/rebuilding of the head pier at the east end of the marina docks. While
we rarely exercise the authority to pre-approve Change Orders, when we do, it
is often due to the timing of the work required to be done – as indeed was the
reason for this pre-approval by staff. Completion of this portion of the project
will be by the end of May 2006. Payment will also have to be made to
Abonmarche Group, the Consulting firm overseeing the project, for necessary
drawing and drafting tasks associated with this work.
FINANCIAL IMPACT: $52,475.70
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To authorize staff to approve Change Order #3 with
Great Lakes Docks and Marina.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to authorize
staff to approve Change Order #3 with Great Lakes Docks and Marina.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
and Gawron
Nays: None
MOTION PASSES
B. Intake Inspection. WATER FILTRATION
SUMMARY OF REQUEST: To contract with an underwater contractor to inspect
the intake conduit, chemical application piping, intake crib, and replace the
wooden louvers on the crib structure.
FINANCIAL IMPACT: Project cost of $48,676.
BUDGET ACTION REQUIRED: Project budgeted at $32,000. Additional cost will
be addressed by the Water Fund Capitol Improvements budget and identified
in the next budget reforecast.
STAFF RECOMMENDATION: Staff recommends the Mayor and City
Commissioners approve entering into a contract with Onyx Underwater Services,
Inc., with consideration of the bidding irregularity for additional material
removal, at a cost of $48,676.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to approve
entering into a contract with Onyx Underwater Services, Inc., with consideration
of the bidding irregularity for additional material removal, at a cost of $48,676.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, Gawron, and
Shepherd
Nays: None
MOTION PASSES
C. Resolution to Sell 247 E. Walton. COMMUNITY & NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the resolution to sell the City-owned house
at 247 E. Walton to Ms. Doris Harris, of 1259 McLaughlin, Muskegon, for the
expected appraised value of $145,000 minus the $49,000 subsidy.
The house at 247 E. 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. The Hilltop View project was the first time that
the Community and Neighborhood Services office had attempted a
development, which consisted of more than one property. With the sale of this
property at 247 E. Walton five 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. It is the hope of all those
involved in the Walton Street Renaissance project that it will be an anchor for
additional redevelopment in the adjacent area as we continue to prepare and
cultivate our community for 21st Century living.
FINANCIAL IMPACT: The program income derived from this transaction will be
deposited in the City’s HOME account minus the funds owed Fifth Third Bank
that was used to construct the new street in the area.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and the sale of 247 Walton
to Ms. Doris Harris.
COMMITTEE RECOMMENDATION: The Walton Street Project was approved by
both the City Commission and the Land Reutilization Committee.
Motion by Commissioner Shepherd, second by Commissioner Carter to approve
the resolution to sell 247 E. Walton to Ms. Doris Harris
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd,
and Spataro
Nays: None
MOTION PASSES
D. Consideration of Proposal to Construct 200’ of 8” Main at Sherman and
Beach. ENGINEERING
SUMMARY OF REQUEST: Authorize staff to accept Jackson Merkey’s proposal to
place approximately 200’ of 8” water main section along with other necessary
items to connect the existing 6” dead-end main on Sherman to that being
constructed to serve the Idlewild area. The proposed section of main will
provide a direct connection to the 30” main on the east side of Beach and in
the process improve the flow in the mains within the area west of Beach and
north of Sherman. Jackson Merkey is being recommended for two main
reasons:
1. The proposed cost of $21,726 is very reasonable for the amount of work
involved
2. Jackson Merkey is already on site for the Idlewild project and therefore
eliminating a possible additional cost for mobilization
FINANCIAL IMPACT: The construction cost of $21,726.
BUDGET ACTION REQUIRED: None, the cost will be covered by the $100,000
budgeted for “Water Main Replacement Projects”.
STAFF RECOMMENDATION: Authorize staff to accept Jackson Merkey’s proposal
for the work to be done in May of 2006.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the construction.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Commission commented on various items.
PUBLIC PARTICIPATION: Various comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 7:08 p.m.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk