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CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 12, 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, September
12, 2006.
Mayor Warmington opened the meeting with a prayer from Reverend
Michael Borgert from the 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 Sue Wierengo, Chris Carter, Kevin Davis, Clara Shepherd, and
Lawrence Spataro, City Manager Bryon Mazade, City Attorney John Schrier, and
Acting City Clerk Linda Potter.
2006-74 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, August 22, 2006.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Approval of a Neighborhood Enterprise Zone Certificate for 286
Monroe. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
certificate has been received from Neighborhood Investment Corporation to
rehabilitate a home in the Nelson neighborhood at 286 Monroe Avenue. The
home is located in a Neighborhood Enterprise Zone. The application states that
the estimated cost for rehabilitation will be $73,057. The rehab will consist of
plumbing, electrical, drywall, carpentry, painting, floor coverings, and siding
repair for the home. The applicant has met local and state requirements for the
issuance of the Neighborhood Enterprise Zone certificate. Approval or denial by
the City Commission is required within 60 days of the application date and must
be forwarded to the State Tax Commission.
FINANCIAL IMPACT: Taxation will be 50% of the State average for the next 12
years.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the issuance of the Neighborhood
Enterprise Zone certificate.
C. Approval of a Neighborhood Enterprise Zone Certificate for 1203 4th
Street. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
certificate has been received from Neighborhood Investment Corporation to
rehabilitate a home in the Nelson neighborhood at 1203 4th Street. The home is
located in a Neighborhood Enterprise Zone. The application states that the
estimated cost for rehabilitation will be $35,220. The rehab will consist of
windows, floor coverings, paint, drywall, carpentry, bathroom, and a new
kitchen to the home. The applicant has met local and state requirements for
the issuance of the Neighborhood Enterprise Zone certificate. Approval or
denial by the City Commission is required within 60 days of the application date
and must be forwarded to the State Tax Commission.
FINANCIAL IMPACT: Taxation will be 50% of the State average for the next 9
years.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve issuance of the Neighborhood Enterprise
Zone certificate.
D. Sale of a Buildable Vacant Lot at 209 E. Walton. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 209 E.
Walton to J2 Properties Development and Construction Company, LLC. The lot
is 132 x 140 ft. and is being offered to J2 Properties Development and
Construction Company, LLC for $4,125. This property will be split into two lots to
construct two single-family homes facing Murphy Street. The proposed homes
will have three bedrooms, two and a half bathrooms, a two stall attached
garage, with one home consisting of 1,536 sq. ft. and the other one consisting of
1,400 sq. ft.
FINANCIAL IMPACT: The sale of this lot for the construction of two single family
homes 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.
COMMITTEE RECOMMENDATION: The Land Reutilization Committee
recommended approval of the sale at their regular meeting of August 22, 2006.
E. Policy Change to “Policy for Sale of City-Owned Residential Property”.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the changes to the “Policy for Sale of City-
Owned Residential Property” as follows: Page 2 item 7 – This is to increase the
Home Design Credit from $2,500 to $3,500 and to place a time limit as to when it
can be collected. Page 3 “Process for Purchasing Land” to change the name
of the brochure to Purchase of City Owned Buildable Lots & Building Incentives.
Page 4 “Title Evidence/Insurance” to correct a misspelled word from “spit” to
“split”.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution.
COMMITTEE RECOMMENDATION: The Land Reutilization Committee
recommended approval of the policy change at their regular meeting of
August 22, 2006.
F. Rejection of all Bids for Roof Replacement. PUBLIC WORKS
SUMMARY OF REQUEST: We are asking the Commission to reject all bids
submitted for the replacement of the shop area roof at the Public Service
Building. Each of the 3 bids taken exceeded the budgeted amount set aside for
this project. We will re-bid with modified specifications which are expected to
lower the expected bids to within the budgeted amount.
FINANCIAL IMPACT: $50,000 was budgeted in the Public Service Building Fund
for shop roof replacement in 2006. All three bids were well over $100,000 each.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Reject all bids. This project will be re-bid.
G. Expense for Stormwater Phase II Compliance 2007-2009. PUBLIC
WORKS
SUMMARY OF REQUEST: The Muskegon Area Storm Water Committee is asking
for a commitment to Muskegon’s share of the 2007-2009 Stormwater Phase II
compliance program. Our total expense would be $31,571 payable at $10,524
for each year 2007-2009. This is to pay for professional services by our consultant,
FTC&H to continue development of required plans for this consortium of
municipalities. This is a 3% increase over the current year’s amount, $9,917.
FINANCIAL IMPACT: This increase has been allocated under the Stormwater
Management Budget of the General Fund for 2007.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve this commitment.
H. Approval of Contractor for Rehabilitation of House at 451 East Isabella.
COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Lewis E. Johnson
Construction, 16076 Bonita Court, Grand Haven, MI for the completion of the
rehabilitation of 451 E. Isabella, for the cost of $58,900. After the total
rehabilitation is completed, the home will be sold to a qualified first-time
homebuyer, continuing the City’s aggressive neighborhood revitalization efforts
in the Angel neighborhood area under the Operation: Like a “Good Neighbor”.
The City received four additional bids:
• Obenauf DePender Construction LLC, 4471 Thompkins Trail, Muskegon, MI
for $68,578
• J2 Development & Construction, 109 West Laketon Avenue, Muskegon, MI
for $75,010
• Higdon Builders Inc, 11180 East D Avenue, Richland, MI for $78,350
• Beattie Bros. Construction LLC, 2786 Holton-Whitehall Road, Twin Lake, MI
for $104,995
FINANCIAL IMPACT: The funding for the project will be taken from the City’s
2006-2007 HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Community and Neighborhood
Services office to develop a contract with Lewis E. Johnson Construction of
Grand Haven, Michigan, and direct the Mayor and Clerk to sign the contract.
I. Lead Based Paint Abatement at 451 East Isabella. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Abatement Specialties
Group Inc, 11180 East D Avenue, Richland, MI for the lead base paint
abatement of the city-owned home at 451 E. Isabella for the cost of $32,650.
The City received one additional bid from Statewide Abatement, 1720 Creston,
North Muskegon, MI for $33,190. 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 2006-2007
HOME budget.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve Community and Neighborhood Services
office to develop a contract with Abatement Specialties Group Inc. of Richland,
MI, and direct the Mayor and Clerk to sign the contract.
J. Approval of Contractor for Rehabilitation of House at 214 Myrtle.
COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Success Enterprise, 2722
East Broadway, Muskegon, MI for the completion of the rehabilitation located at
214 Myrtle for the cost of $65,505. This property is located near the City’s current
Infill Development Project “Walton Street Renaissance”. After the total
rehabilitation is completed, the home will be sold to a qualified first-time
homebuyer, continuing the City’s aggressive neighborhood revitalization efforts
in the Angel neighborhood area under the Operation: “Market View Alley”.
The City received five additional bids:
• Obenauf DePender Construction LLC, 4471 Thompkins Trail, Muskegon, MI
for $77,060
• J2 Development & Construction, 109 West Laketon Avenue, Muskegon, MI
for $94,120
• Holden Construction, 601 Amity, Muskegon, MI for $95,045
• Higdon Builders Inc., 11180 East D Avenue, Richland, MI for $103,500
• Beattie Bros. Construction LLC, 2786 Holton-Whitehall Road, Twin Lake, MI
for $140,430
FINANCIAL IMPACT: The funding for the project will be taken from the City’s
2006-2007 HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Community and Neighborhood
Services office to develop a contract with Success Enterprises and direct the
Mayor and Clerk to sign the contract.
K. Lead Based Paint Abatement at 214 Myrtle. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Success Enterprise, 2722
East Broadway, Muskegon, MI for the lead base paint abatement of the city-
owned home at 214 Myrtle for the cost of $40,950.
The City received one additional bid from Abatement Specialties, 11180 East D
Avenue, Richland, MI for $45,700. 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 2006-2007
HOME budget.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve Community and Neighborhood Services
office to develop a contract with Success Enterprises of Muskegon, and direct
the Mayor and Clerk to sign the contract.
L. Defined Contribution Retirement Plan for New Hires (Police Patrol).
FINANCE
SUMMARY OF REQUEST: Through negotiation/arbitration with the Police Patrol
Union, new employees hired after July 28, 2006, will be covered under a defined
contribution pension program. In addition, current employees may also join the
Defined Contribution plan on an elective basis during a window period. The
new Defined Contribution plan calls for a city contribution of 10% and an
employee contribution of 6% of wages.
Documents for this plan are the same as for the previous plan set-ups for
Clerical, Fire, Non-union and 517M employees. Staff is requesting authorization
to have the Mayor, Clerk and other required city officials sign the necessary
documents to implement the new Defined Contribution plan for police patrol.
FINANCIAL IMPACT: Moving to a defined contribution plan will help stabilize and
better define the city’s annual pension costs.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approval
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the consent agenda as read.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and
Wierengo
Nays: None
MOTION PASSES
2006-75 PUBLIC HEARINGS:
A. Request to Issue an Obsolete Property Certificate – 1133 Third Street.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, DAT Holdings LLC, 16012 Baird Drive, Spring Lake, MI has requested the
issuance of an Obsolete Property Certificate for the property located at 1133
Third Street, Muskegon, MI. Total capital investment for this project is $175,000.
The project consists of converting the building into a restaurant. Because of the
amount of investment, the applicant is eligible for a 9 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: Staff recommends approval.
The Public Hearing opened at 5:49 p.m. to hear and consider any comments
from the public. No public comments were heard.
Motion by Commissioner Carter, second by Commissioner Shepherd to close the
Public Hearing at 5:52 p.m. and approve the request to issue an Obsolete
Property Certificate for 1133 Third Street.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Carter
Nays: None
MOTION PASSES
B. Spreading of the Special Assessment Roll for Benton Avenue and
Williams Street, Chestnut to Catawba. ENGINEERING
SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special
assessment for Benton & Williams Street from Chestnut to Catawba, and to
adopt the resolution confirming the special assessment roll.
FINANCIAL IMPACT: A total of $32,272.55 would be spread against the sixteen
parcels abutting the project.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the special assessment roll, and adopt
the resolution.
The Public Hearing opened at 5:53 p.m. to hear and consider any comments
from the public. No public comments were heard.
Motion by Vice Mayor Gawron, second by Commissioner Carter to close the
Public Hearing at 5:55 p.m. and spread the special assessment roll for Benton
and Williams from Chestnut to Catawba.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter,
and Davis
Nays: None
MOTION PASSES
C. Spreading of the Special Assessment Roll for Park Street, Laketon to
Southern. ENGINEERING
SUMMARY OF REQUEST: To hold a public hearing on the spreading of the special
assessment for Park Street from Laketon to Southern, and to adopt the resolution
confirming the special assessment roll.
FINANCIAL IMPACT: A total of $78,723.20 would be spread against the 33
parcels abutting the project.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the special assessment roll, and adopt
the resolution.
The Public Hearing opened at 5:56 p.m. to hear and consider any comments
from the public. No public comments were heard.
Motion by Commissioner Carter, second by Commissioner Spataro to close the
Public Hearing at 5:57 p.m. and approve the spreading of the special
assessment roll for Park Street, Laketon to Southern.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
and Gawron
Nays: None
MOTION PASSES
D. 2007 Budget Adoption. FINANCE
SUMMARY OF REQUEST: This is the time set for a public hearing on the City’s
proposed budget for the year 2007. The proposed budget has been made
available for public inspection at City Hall, Hackley Public Library and the City’s
website. After hearing public comments, the City Commission may take action
to adopt the 2007 budget with whatever changes or adjustments it deems
necessary. In any event, City Charter requires the budget be adopted no later
than September 25, 2006.
FINANCIAL IMPACT: The budget sets forth the priorities and overall financial plan
for operations in the year 2007. As proposed, the budget includes no property
tax increase.
BUDGET ACTION REQUIRED: Adoption of the budget resolution provides the
legal appropriation authority necessary for City departments to conduct
operations in 2007.
STAFF RECOMMENDATION: After receiving comments, close the public hearing
and approve the proposed 2007 City of Muskegon Budget resolution. Also,
approval of the 3rd Quarter 2006 Budget Reforecast as shown in the Budget
Book is recommended at this time.
The Public Hearing opened at 5:58 p.m. to hear and consider any comments
from the public. No public comments were heard.
Motion by Commissioner Carter, second by Commissioner Shepherd to close the
Public Hearing at 5:59 p.m. and approve the proposed 2007 Budget and the 3rd
Quarter 2006 Budget Reforecast.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, Gawron, and
Shepherd
Nays: None
MOTION PASSES
2006-76 NEW BUSINESS:
A. Set Public Hearing for Amendment to Brownfield Plan – Redevelopment
of the Century Club & Daniels and Redevelopment of Muskegon
Savings Bank. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the resolution setting a public hearing for an
amendment for the Brownfield Plan, and notifying taxing jurisdictions of the
Brownfield Plan Amendment including the opportunity to express their views and
recommendations regarding the proposed amendment at the public hearing.
The amendment is for the inclusion of property owned by Western Avenue
Properties, LLC and Port City Construction & Development Services, LLC, known
as Western Avenue Properties, located at 350, 356, 360-366 W. Western, in the
Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in including the project in
the Brownfield Plan, although the redevelopment of the site into residential
condominiums will eventually add to the tax base in Muskegon.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority met
on September 5, 2006 and approved the Brownfield Plan Amendment and
recommends the approval of the Brownfield Plan Amendment to the Muskegon
City Commission. In addition, the Brownfield Redevelopment Authority
recommends that the Muskegon City Commission set a public hearing on the
Plan Amendment for October 10, 2006.
Motion by Commissioner Spataro, second by Commissioner Carter to set the
Public Hearing for the Amendment to the Brownfield Plan for the redevelopment
of the Century Club and Daniels and the Muskegon Savings Bank for October 10,
2006.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd,
and Spataro
Nays: None
MOTION PASSES
B. Set Public Hearing for Amendment to Brownfield Plan – Vida Nova at
Edison Landing. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the resolution setting a public hearing for an
amendment for the Brownfield Plan, and notifying taxing jurisdictions of the
Brownfield Plan Amendment including the opportunity to express their views and
recommendations regarding the proposed amendment at the public hearing.
The amendment is for the inclusion of property owned by DDLH, LLC, known as
Vida Nova at Edison Landing, located at 160 & 190 Viridian Drive, in the
Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in including the project in
the Brownfield Plan, although the redevelopment of the site into residential
condominiums will eventually add to the tax base in Muskegon.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor
and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority met
on September 5, 2006, and approved the Brownfield Plan Amendment and
recommends the approval of the Brownfield Plan Amendment to the Muskegon
City Commission. In addition, the Brownfield Redevelopment Authority
recommends that the Muskegon City Commission set a public hearing on the
Plan Amendment for October 10, 2006.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to approve
the resolution setting the Public Hearing for the amendment to the Brownfield
Plan for Vida Nova at Edison Landing for October 10, 2006.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
C. Extension of Contract to Market Seaway Industrial Park. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: In 2004, C & A Commercial Real Estate was selected as
the company to market Seaway Industrial Park properties, as well as one
property located on Getty Street. A nine-month real estate agreement was
originally signed by the Mayor, with a six-month extension signed by the City
Manager in December 2004. City Commission granted C & A Commercial Real
Estate another six-month extension in August 2005 and again in February 2006.
Staff feels that Commission should review the performance of C & A
Commercial Real Estate in order to determine if there should be another
extension of the agreement for a six-month time period.
FINANCIAL IMPACT: The continued timely sale and development of these
properties will bring more jobs to Muskegon in the near future, thus additional
income tax being generated.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: No staff recommendation.
Motion by Commissioner Carter, second by Commissioner Shepherd to give an
extension of the contract to market Seaway Industrial Park to C & A Commercial
Real Estate for a six-month time period.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Shepherd, Spataro, Warmington, and
Wierengo
Nays: None
MOTION PASSES
D. Extension of Tool & Die Recovery Zone Status for Northern Machine Tool.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the Resolution extending the Tool & Die
Recovery Zone for Northern Machine Tool. The City originally granted 15 years
but other municipalities only granted 12 years for other companies in the
Coalition, making Northern Machine Tool only eligible for 12 years. The law has
since been amended, allowing differing lengths of time for different companies
in the coalition. Northern Machine Tool is now requesting an extension to take
advantage of the full 15 years.
FINANCIAL IMPACT: The original estimates were that the City will forego
approximately $7,300 per year for a total of approximately $109,545 in taxes for
the 15-year period of the zone.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Resolution extending the Tool & Die
Recovery Zone for Northern Machine Tool, and authorize the Mayor and Clerk to
sign.
Motion by Commissioner Spataro, second by Commissioner Wierengo to
approve the resolution extending the Tool & Die Recovery Zone for Northern
Machine Tool.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Carter
Nays: None
MOTION PASSES
E. Fire Station Construction Contract. CITY MANAGER
SUMMARY OF REQUEST: To award a contract for the construction of a new
central fire station at the corner of Terrace Street and Western Avenue. A
recommendation will be made at the commission meeting after the bids can
be analyzed.
FINANCIAL IMPACT: Approximately $3.5 million.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff will recommend the lowest responsible bidder
at the meeting on Tuesday.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to award the
contract for the new fire station to Beckering Advisor Inc. with alternate #1.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Carter,
and Davis
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Commission discussed various items.
ADJOURNMENT: The City Commission Meeting adjourned at 6:50 p.m.
Respectfully submitted,
Linda Potter, CMC
Acting City Clerk