City Commission Minutes 03-14-2006

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                       MARCH 14, 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, March 14,
2006.
   Mayor Warmington opened the meeting with a prayer from Pastor 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 Chris Carter, Kevin Davis, Lawrence Spataro, and Sue Wierengo,
City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk Gail
Kundinger.
   Absent: Commissioner Clara Shepherd (excused).
2006-23 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, February 28, 2006.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
      C. Sale of Buildable Vacant Lot at 1293 Marquette Avenue. PLANNING &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 1293
Marquette Avenue to Pierre and Tondalaya Tyson. The lot is 100 x 132 ft. and is
being offered to Mr. and Mrs. Tyson for $6,750. A single family ranch style home
will be constructed. The home will have a two stall garage and five bedrooms
with two of the bedrooms being located in the basement. The square footage
of the home will exceed what is required by the policy. The closing will take
place 120 days from the City Commission approval.
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.
COMMITTEE RECOMMENDATION:             The Land Reutilization Committee
recommended approval of the sale with the closing taking place in 120 days as
opposed to 90 days from the City Commission approval of the sale at their
regular meeting of February 26, 2006.
      D. Contract for     Mowing    Services.      PLANNING     &   ECONOMIC
         DEVELOPMENT
SUMMARY OF REQUEST: To approve a two-year contract with the Sheldon Park
Neighborhood Improvement Association for the maintenance of two City-
owned lots in the Sheldon Park neighborhood.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION:           Authorize execution of the contract.     The
responsibility for cleaning and mowing these lots would belong to the
Association rather than the City and would extend through 2007. The City’s
estimated cost of $2,000 to maintain the lots over this period would then be
donated to the Association. The neighborhood has maintained the lots for
several years under similar agreements and has done a good job.
      E. Purchase of Computer Equipment. PUBLIC SAFETY
SUMMARY OF REQUEST: Police Department staff request that the Commission
approve the use of Criminal Forfeiture Funds to purchase new computer
hardware. These computers will be utilized by the Patrol Bureau, Community
Officers and the Professional Standards Office. The current computers are
approximately 3-4 years old and we are beginning to experience a number of
malfunctions. This purchase will coincide with the start-up of the County’s new
records management system. We would like to replace 13 computers. This bid
was developed with the assistance of the Information Technologies
Department.
FINANCIAL IMPACT: Cost for this package is $16,765 ($1,290 per unit). There is no
impact on General Fund monies.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of this request.
      F. Request for an Encroachment Agreement. ENGINEERING
SUMMARY OF REQUEST: Inland Seas on behalf of Marathon Petroleum Company
has filed an encroachment agreement form to install four monitoring wells in the
public right-of-way in the area of Sherman Blvd. and Glenside Blvd.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the encroachment agreement subject
to the supplemental conditions and compliance with the necessary insurance
requirements.
Motion by Commissioner Carter, second by Vice Mayor Gawron to approve the
Consent Agenda as read with the exception of item B.
ROLL VOTE: Ayes: Davis, Gawron, Spataro, Warmington, Wierengo, and Carter
            Nays: None
MOTION PASSES
2006-24 ITEM REMOVED FROM THE CONSENT AGENDA:
      B. Approval of a Neighborhood Enterprise Zone Certificate at 1120
         Jefferson. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
certificate has been received from Millie Ortiz to rehabilitate a home in the
Nelson neighborhood at 1120 Jefferson Street that she has just purchased. The
home is on the dangerous building list and the applicant has set up a timeline
for repairs with the Inspections Department. The home is located in a
Neighborhood Enterprise Zone. The application states that the estimated cost
for rehabilitation will be $30,000. There will be new electrical, plumbing, furnace,
windows, some drywall and the repairing of the floor and walls. 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 7
years
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve issuance of the Neighborhood Enterprise
Zone certificate.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the Neighborhood Enterprise Zone Certificate for 1120 Jefferson.
ROLL VOTE: Ayes: Gawron, Spataro, Warmington, Wierengo, Carter, and Davis
            Nays: None
MOTION PASSES
2006-25 PUBLIC HEARINGS:
      A. Request for an Industrial Facilities Exemption Certificate - Cole’s Quality
         Foods. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Cole’s
Quality Foods, 1188 Lakeshore Drive, has requested the issuance of an Industrial
Facilities Exemption Certificate for the property located at 1188 Lakeshore Drive,
Muskegon. The total capital investment is approximately $2,000,000 in personal
property. This request qualifies Cole’s Quality Foods for a term of eight years for
personal property.
FINANCIAL IMPACT: The City will capture certain additional property taxes
generated by the expansion.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of eight years for personal property.
The Public Hearing opened at 5:41 p.m. to hear and consider any comments
from the public. No public comments were heard.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to close the
Public Hearing at 5:43 p.m. and approve the request for an Industrial Facilities
Exemption Certificate for Cole’s Quality Foods.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, and Gawron
            Nays: None
MOTION PASSES
      B. Recommendation for Annual Renewal of Liquor Licenses. CITY CLERK
SUMMARY OF REQUEST: To adopt a resolution recommending non-renewal of
those liquor license establishments who are in violation of Section 50-146 and 50-
147 of the Code of Ordinances for the City of Muskegon. These establishments
have been found to be in non-compliance with the City Code of Ordinances
and renewal of their liquor licenses should not be recommended by the City
Commission. If any of these establishments come into compliance by March 23,
2006, they will be removed from this resolution, and recommendation for their
renewal will be forwarded to the Liquor Control Commission.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Adoption of the resolution.
The Public Hearing opened at 5:44 p.m. to hear and consider any comments
from the public. Comments were heard from Ann Mahan-McAllister, 2236 Oak
and Malachi Williams Jr., 3031 Merriam, the owners of Dreamers.
 Motion by Commissioner Spataro, second by Commissioner Carter to close the
Public Hearing at 5:57 p.m. and approve the recommendation for annual
renewal of liquor licenses and adopt the resolution.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, and Gawron
            Nays: None
MOTION PASSES
      C. 2006-2007 CDBG/HOME Recommendation and City Commission
         Preliminary Decision. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST:          To conduct a Public Hearing concerning the
CDBG/HOME 2006-2007 recommendation submitted by both the administration
and the Citizen District Council. The Public Hearing is to gather information from
the public concerning the 2006-2007 CDBG/HOME funding which is to be
$1,060,145 and $301,767 respectively, excluding any program income or
reprogrammed funding. The City Commission is also asked to make their
preliminary decision on what items should be funded and at what amounts. The
City Commission will be asked to make their final decision on April 11, 2006,
during the scheduled Commission Meeting.
FINANCIAL IMPACT:      The 2006 – 2007 allocations will be based on the
Commission decision(s).
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To conduct the Public Hearing and to make a
preliminary allocation decision.
The Public Hearing opened at 5:58 p.m. to hear and consider any comments
from the public. Comments were heard from Diana L. Miller, Habitat for
Humanity; Frank Cobb, 801 Mills; Heidi Steigman, 1030 Ducey; Lynn Nash, 1405
Lakeshore; Jamie Langlois, 3447 Chippewa; Dan Bonner, 1652 Nelson; Jessica
Elsey, 476 Muskegon; Frank Noble, 1924 Jiroch; and Lois Brinks.
Motion by Commissioner Spataro, second by Commissioner Carter to close the
Public Hearing at 7:14 p.m.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, and Spataro
            Nays: None
MOTION PASSES
Discussion to continue at the end of the meeting.
      D. Create a Special Assessment District for Lakeshore Drive, McCracken
         to 145’ Northeasterly of Centerline of Vanderlinde. ENGINEERING
SUMMARY OF REQUEST: To hold a Public Hearing on the proposed special
assessment for Lakeshore Drive, McCracken Avenue to 145’ northeasterly of the
centerline of Vanderlinde Street, and to create the special assessment district
and appoint two City Commissioners to the Board of Assessors if it is determined
to proceed with the project.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To create the special assessment district and assign
two City Commissioners to the Board of Assessors by adopting the resolution.
The Public Hearing opened at 7:15 p.m. to hear and consider any comments
from the public. Comments were heard from Jim Larsen, 1605 Lakeshore in
opposition of the project; and Richard McEwen, 1812 Lakeshore in favor of the
project.
Motion by Commissioner Carter, second by Commissioner Davis to close the
Public Hearing at 7:24 p.m. and approve the creation of the special assessment
district for Lakeshore Drive, McCracken to 145’ northeasterly of the centerline of
Vanderlinde.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, and Spataro
            Nays: None
            Abstain: Warmington
MOTION PASSES
Mayor Warmington and Commissioner Davis were appointed to the Board of
Assessors.
      E. Create a Special Assessment District for Western Avenue, 3rd Street to
         8th Street. ENGINEERING
SUMMARY OF REQUEST: To hold a Public Hearing on the proposed special
assessment for Western Avenue, Third Street to Eighth Street, and to create the
special assessment district and appoint two City Commissioners to the Board of
Assessors if it is determined to proceed with the project.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To create the special assessment district and assign
two City Commissioners to the Board of Assessors by adopting the resolution.
The Public Hearing opened at 7:26 p.m. to hear and consider any comments
from the public. Comments were heard in opposition from Derrick Ebbadon,
16327 Highland Drive, Spring Lake, representing Port City CIO.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to close the
Public Hearing at 7:31 p.m. and create the special assessment district for
Western Avenue, 3rd Street to 8th Street and appoint two City Commissioners to
the Board of Assessors.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Spataro, Warmington, and Wierengo
            Nays: None
MOTION PASSES
Commissioner Spataro and Wierengo were appointed to the Board of Assessors.
2006-26 NEW BUSINESS:
      A. L. C. Walker Arena Management Agreement. FINANCE
SUMMARY OF REQUEST: Staff has negotiated a new management agreement
for the L. C. Walker Arena. The new agreement greatly simplifies the relationship
between the City and the arena manager, limits the City’s financial exposure
and provides private-sector incentives to utilize the facility to its fullest.
FINANCIAL IMPACT: The proposed contract will reduce and limit the City’s
financial obligation for the arena. Additionally, a mechanism is established to
fund future repairs.
BUDGET ACTION REQUIRED: None at this time. If contract is approved, budget
amendments will be made during the second quarter reforecast and will
include creation of the repair and maintenance fund, adjustments to the
budgeted revenues and expenses of the Arena fund reflecting partial year
operations under the old contract, and adjustments to the General fund
reflecting the new management fee arrangement.
STAFF RECOMMENDATION: Staff recommends approval of the proposed L. C.
Walker Arena Management agreement.
Motion by Commissioner Spataro, second by Commissioner Carter to approve
the L. C. Walker Arena Management agreement as proposed.
ROLL VOTE: Ayes: Davis, Gawron, Spataro, Warmington, Wierengo, and Carter
            Nays: None
MOTION PASSES
      B. Muskegon Township Water Billing Agreement. CITY MANAGER
SUMMARY OF REQUEST: To approve a reduction in billing service cost to
Muskegon Township from $5,250 a month to $2,625 a month for January, 2006,
through May, 2006. This adjustment is due to the fact that Muskegon Township is
no longer fully utilizing the City’s billing services.
FINANCIAL IMPACT: Reduction in revenues of $15,750.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request and authorize City staff to
execute documents to enter into the change.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the Muskegon Township Water Billing Agreement.
ROLL VOTE: Ayes: Gawron, Spataro, Warmington, Wierengo, Carter, and Davis
            Nays: None
MOTION PASSES
      C. Variable Frequency Drive Repairs Resulting from Power Surge. WATER
         FILTRATION
SUMMARY OF REQUEST: Authorize repairs to three variable frequency drives
damaged by a power surge. The variable frequency drives control two low
service pumps and one recycle pump.
FINANCIAL IMPACT:     The repair cost by the manufacturer, Cutler-Hammer, is
$86,433.
BUDGET ACTION REQUIRED: The repair cost will require a budget adjustment.
STAFF RECOMMENDATION: Staff recommends proceeding with the repairs to
the variable frequency drives at a cost of $86,000.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to proceed
with the repairs to the variable frequency drives at a cost of $86,000.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, and Gawron
            Nays: None
MOTION PASSES
      D. Amend the Special Assessment Roll for 2004 Sidewalk Replacement
         Program. ENGINEERING
SUMMARY OF REQUEST: Amend the 2004 Special Assessment Roll for the 2004
Sidewalk Program (H-1572) project to revise the assessment amount levied
against 1421 Wesley (parcel No. 24-611-000-0226-00) from $3,079.43 to $379.04.
The original roll which was adopted August 24, 2004, reflected an assessment of
$3,079.43 against 1421 Wesley in error. When the original assessment information
was generated, a square footage of 750 of sidewalk replacement was entered
by mistake instead of the 75 square feet that was actually replaced.
FINANCIAL IMPACT: Reimburse the owner the overage in payment and interest
which is estimated at less than $100.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the amended special assessment roll
and reimbursement to the owner of 1421 Wesley.
Motion by Commissioner Spataro, second by Commissioner Wierengo to amend
the special assessment roll for the 2004 Sidewalk Replacement Program and
reimburse the owner of 1421 Wesley.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, and Gawron
            Nays: None
MOTION PASSES
      E. Consideration    of   Bids:   Forest   Avenue,    Davis   to   Ruddiman.
         ENGINEERING
SUMMARY OF REQUEST: Award the paving, using asphalt material, contract (H-
1616) for Forest Avenue, Davis to Ruddiman to Felco Contractors, Inc. since they
were the lowest bidder with a bid price of $42,575.20. While Felco is the lowest
bidder, he failed to fill out the disadvantage contractor affidavit as part of the
bid submittal.
FINANCIAL IMPACT: The construction cost $42,575.20 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Award the contract to Felco Contractors, Inc. if the
City Commission desires to waive the bid irregularity of not completing the
disadvantage contractor affidavit.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to award the
contract to Felco Contractors, Inc., for Forest Avenue, Davis to Ruddiman, and
waive the bid irregularity of not completing the disadvantage contractor
affidavit.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, and Spataro
            Nays: None
MOTION PASSES
      F. Consideration    of   Bids:   Cherry   Street,   Wilcox   to   Thompson.
         ENGINEERING
SUMMARY OF REQUEST: Award the paving, using asphalt material, contract (H-
1605) for Cherry, Wilcox to Thompson to Felco Contractors, Inc. since they were
the lowest bidder with a bid price of $47,869.50. While Felco is the lowest bidder,
he failed to fill out the disadvantage contractor affidavit as part of the bid
submittal.
FINANCIAL IMPACT: The construction cost $47,869.50 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Award the contract to Felco Contractors, Inc, if the
City Commission desires to waive the bid irregularity of not completing the
disadvantage contractor affidavit.
Motion by Commissioner Spataro, second by Commissioner Carter to award the
contract for Cherry Street, Wilcox to Thompson, to Felco Contractors, Inc., and
waive the bid irregularity.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Spataro, and Warmington
            Nays: None
MOTION PASSES
2006-27 ANY OTHER BUSINESS:
Discussion continued on: 2006-2007 CDBG/HOME Recommendation and City
Commission Preliminary Decision.
Motion by Commissioner Spataro, second by Commissioner Wierengo to
approve the recommendation of the Community Development Block Grant
Committee and to make changes on the HOME Fund making HOME Rental
Rehabilitation $0, Muskegon County Habitat for Humanity $35,000, and
Neighborhood Investment Corporation $70,000.
Motion amended by Commissioner Spataro, second by Commissioner Wierengo
to recommend $30,176 to HOME Administration, $100,000 to HOME Tax Reverted
Rehabilitation, $25,000 to HOME Rental Rehabilitation, $85,000 to HOME Infill New
Construction, $35,000 to Muskegon County Habitat for Humanity, and $70,000 to
Neighborhood Investment Corporation.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Spataro, Warmington, and Wierengo
            Nays: None
AMENDED MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 8:34 p.m.


                                           Respectfully submitted,




                                           Gail A. Kundinger, MMC
                                           City Clerk

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