The Regular Commission Meeting of the City of Muskegon was held at Muskegon High School, 80 W. Southern Avenue, at 5:35 p.m., Tuesday, March 10, 1998.

Mayor Nielsen opened the meeting at 5:35 p.m., with a prayer, after which the members of the City Commission and the members of the public joined in reciting the Pledge of Allegiance to the Flag.

29. PUBLIC HEARINGS:

1. Special Assessment of Keaton Court, Lakeshore to Filtration Plant ENGINEERING

SUMMARY OF REQUEST: To hold a public hearing on the proposed special assessment of Keaton Court from Lakeshore Drive to the Filtration Plant, to create the special assessment district and to 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 approve the creation of the special assessment and assign two City Commissioners to the Board of Assessors by adopting the attached resolution.

COMMITTEE RECOMMENDATION: The Committee of the Whole was cancelled due to weather.

The Public Hearing opened at 5:38 p.m. to hear and consider any comments on the proposed special assessment of Keaton Court from Lakeshore Drive to the Filtration Plant. No comments were heard.

Motion by Commissioner Benedict, seconded by Commissioner Sieradzki to close the public hearing at 5:45 p.m. and to approve the special assessment of Keaton Court from Lakeshore Drive to the Filtration Plant and to create the special assessment district and to appoint two City Commissioners to the Board of Assessors.

ROLL VOTE: Ayes: Nielsen, Pleimling, Shepherd, Sieradzki, Aslakson, Benedict, Michalski

Nays: None

ADOPTED

Mayor Nielsen appointed Commissioner Aslakson and Commissioner Benedict to the Board of Assessors.

2. Special Assessment of Seventh Street, Houston to Muskegon ENGINEERING

SUMMARY OF REQUEST: To hold a public hearing on the proposed special assessment of Seventh Street from Houston Avenue to Muskegon Avenue, to create the special assessment district and to 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 approve the creation of the special assessment district and assign two City Commissioners to the Board of Assessors by adopting the attached resolution.

COMMITTEE RECOMMENDATION: The Committee of the Whole did not meet due to the weather.

The Public Hearing opened at 5:46 p.m. to hear and consider any comments on the special assessment of Seventh Street from Houston Avenue to Muskegon Avenue. Comments were heard from John Parker, 543 Houston and Robert Micthell, 1260 Seventh regarding the sidewalks and the damage that the city owned trees have done to them.

Motion by Commissioner Benedict, seconded by Commissioner Sieradzki to close the public hearing at 5:55 p.m. and to recess until the next Regular Commission Meeting.

ROLL VOTE: Ayes: Pleimling, Shepherd, Sieradzki, Aslakson, Benedict, Michalski, Nielsen

Nays: None

ADOPTED

3. Annual Liquor License Renewals.

CITY CLERK

SUMMARY OF REQUEST: To adopt a resolution recommending nonrenewal of those liquor license establishments who are in violation of Section 5-270 and 5-271 of the Code of Ordinances for the City of Muskegon. These establishments have been found to be in noncompliance 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 20, 1998, 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.

COMMITTEE RECOMMENDATION: The Committee of the Whole did not meet due to weather conditions.

The Public Hearing opened at 5:45 p.m. to hear and consider any comments on the nonrenewal of those liquor license establishments who are in violation of Section 5-270 and 5-271 of the Code of Ordinances for the City of Muskegon. No comments were heard.

Motion by Commissioner Sieradzki, seconded by Commissioner Shepherd to close the public hearing at 6:04 p.m. and to adopt a resolution recommending nonrenewal of those liquor license establishments who are in violation of Section 5-270 and 5-271 of the Code of Ordinances for the City of Muskegon.

ROLL VOTE: Ayes: Shepherd, Sieradzki, Aslakson, Benedict, Michalski, Nielsen, Pleimling

Nays: None

ADOPTED

4. City Residency.

SUMMARY OF REQUEST: City Commission requested that a public hearing be held to hear and consider public comments regarding city residency.

The Public Hearing opened at 6:05 p.m. to hear and consider comments regarding city residency. Those that spoke in opposition to the residency requirement were: Pam Smith, 1470 Wesley, Judy Barnhardt, 312 Erickson, Barb Schultz, 1780 Dyson, Mike Cameron, 1895 Crowley, Tom Oosting, 2429 Blodgett, Pastor Leonard Coon, resident of Muskegon County, David Eigenauer, 1521 Lexington, Bob Grabinski, 1028 W. Southern, Jerry Bartoszek, 1535 Glen, Shawn Grabinski, 1028 W. Southern, Tonya Kolkema, 1527 Beardsley, Bonnie Bauman, 1292 Clayton, Chris Burnham,1312 Howard, Jeff Rake, 2444 Cutler, Mark Lewis, 170 Washington, Terry Redmon, 902 Mangin, Kristy Eigenauer, 1521 Lexington, Chris Temple, 2147 Barclay, Marc Johnson, resident of New Era, Greg Borgman, 234 Houston, Donna Cannady, 1349 Howard, Mat Dugener, 1364 Randolph, Rick Bleigh, City of Muskegon Police Officer, Dean Roseler, 841 Young, Frank Rummella, resident of Twin Lake, Deb Atkinson, Muskegon Township resident. Those that spoke in favor of the residency requirement were: Marian Harris Darnell, 684 Catherine, Larry Grant, 80 W. Southern, Helen Abbey, 760 Catherine and Gail Stong, 1319 Jefferson.

The City Manager informed the Commission that several Commissioners would be at the MML Conference in Lansing.

SUMMARY OF REQUEST: The Community Relation Committee would like to keep the list of grant eligible Neighborhood Associations to the fifteen (15) that are listed in the City of Muskegon’s Community Based Organization Application. Also, in the future, any request that would change the organizational make up of the CBO’s must come from a collaboration of Neighborhood Associations.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

COMMITTEE RECOMMENDATION: The Community Relation committee recommends the changes as stated above.

1. Approval of Minutes.

CITY CLERK

SUMMARY OF REQUEST: To approve the minutes of the Regular Commission meeting that was held on Tuesday, February 24, 1998.

BUDGET ACTION REQUIRED: None

FINANCIAL IMPACT: None

STAFF RECOMMENDATION: Approval of minutes.

Motion by Vice Mayor Shepherd, seconded by Commissioner Aslakson to approve the minutes of the Regular commission meeting that was held on Tuesday, February 24, 1998 with corrections to the last page in regards to the closed session.

ROLL VOTE: Ayes: Michalski, Nielsen, Pleimling, Shepherd, Sieradzki, Aslakson, Benedict

Nays: None

ADOPTED

2. Shoreline Drive East Consulting Engineering Agreement Amendment ENGINEERING

SUMMARY OF REQUEST: To amend the Shoreline Drive East Consulting Engineering Agreement with Earth Tech to include the design of two bridges spanning Ryerson Creek. Previously it was anticipated that culverts could be used to cross the creek but the required span and waterway opening require the use of bridge structures.

FINANCIAL IMPACT: The amendment will add $40,211 to Earth Tech’s not to exceed cost bring the total allowed cost to $309,474.

BUDGET ACTION REQUIRED: The phase of the project is being completely funded by the State which concurs with the requested amendment.

STAFF RECOMMENDATION: To approve the amendment to the agreement.

COMMITTEE RECOMMENDATION: The Committee of the Whole did not meet due to weather conditions.

Motion by Commissioner Sieradzki, seconded by Commissioner Benedict to amend the Shoreline Drive East consulting Engineering Agreement with Earth Tech to include the design of two bridges spanning Ryerson Creek.

ROLL VOTE: Ayes: Nielsen, Pleimling, Shepherd, Sieradzki, Aslakson, Benedict, Michalski

Nays: None

ADOPTED

3. Muskegon E.C. Family Center Contract Extension PLANNING & ECONOMIC DEVELOPMENT

SUMMARY OF REQUEST: In March 1996, the City of Muskegon and the County of Muskegon, through its Department of Employment and Training, entered into a contract for the administration of the Muskegon Enterprise Community Family Center. The contract was originally intended to extend for a period of two years, at which time it was anticipated that the $1.1 million designated for the operation of the Family Center would have been depleted. Through the County of Muskegon’s administration, however, there is approximately $382,055 in funds remaining. The City of Muskegon has received a request from the County of Muskegon that the current contract be amended to allow for the continued administration by the County of the Family Center, until such time as the funds have been completely extended (see attached request). This will allow for the continued operation of the Family Center through December 31, 1998. The City of Muskegon has received several letters supporting the current operations of the E. C. Family Center, which are attached. The City Commission is requested to approve the extension of the existing contract with the County of Muskegon.

FINANCIAL IMPACT: In the City of Muskegon’s Enterprise Community Plan, $1.1 million was designated for the operation of the Muskegon Family Center. After two years of operations, approximately $717,945 has been spent. There is approximately $382,055 remaining which will allow the Muskegon Family Center to continue operating through December 31, 1998.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To approve the extension of the Muskegon Family Center Contract between the City of Muskegon and the County of Muskegon and request that the City Attorney prepare an amendment to the existing contract and authorize the Mayor and City Clerk to sign the necessary documents.

COMMITTEE RECOMMENDATION: The Committee of the Whole did not meet due to weather conditions.

Motion by Commissioner Aslakson, seconded by Commissioner Sieradzki to amend the current contract to allow for the continued administration by the County of the Family Center through December 31, 1998.

ROLL VOTE: Ayes: Pleimling, Shepherd, Sieradzki, Aslakson, Michalski, Nielsen

Nays: None

ADOPTED

4. Appointment to City Commission Boards and Committees ASSISTANT CITY MANAGER

SUMMARY OF REQUEST: The Legislative Policy Committee would like to put in place a new procedure governing appointments to City Commission Boards and Committees.

The new appointment procedure is a three-tier process as described in the attached resolution.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

COMMITTEE RECOMMENDATION: The Legislative Committee recommends approval of the attached resolution.

Motion by Commissioner Aslakson, seconded by Vice Mayor Shepherd to approve a new procedure governing appointments to City Commission Boards and Committees.

ROLL VOTE: Ayes: Shepherd, Sieradzki, Aslakson, Benedict, Michalski, Nielsen, Pleimling

Nays: None

ADOPTED

5. Release of Personal Obligation on Revolving Loan Fund Loan and Sale of Capital Stock – Steelcoating, Inc.

PLANNING & ECONOMIC DEVELOPMENT

SUMMARY OF REQUEST: Steelcoating, Inc., 1321 Division Street, is requesting the City’s permission to release Malcolm Hitchcock for personal obligation on a Revolving Loan Fund loan made to the company of September 22, 1997. It is the intention of Steelcoating, Inc. to purchase all stock interest from Malcolm Hitchcock, effectively removing him from ownership in the company, and reselling that stock to new equity investors. Per the term loan agreement, the City reserves the right to restrict the purchase, redemption, retirement or other acquisition of capital stock within Steelcoating, Inc.

FINANCIAL IMPACT: None

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: To concur with the recommendation of the Revolving Loan Fund Advisory Committee.

COMMITTEE RECOMMENDATION: The Revolving Loan Fund Advisory Committee at its meeting of March 3, 1998, recommended to the City Commission that the request be granted contingent on all conditions noted in the resolution. The Committee of the Whole did not meet due to weather conditions.

Motion by Commissioner Benedict, seconded by Commissioner Aslakson to release Malcolm Hitchcock for personal obligation on a Revolving Loan Fund loan made to the company of September 22, 1997.

ROLL VOTE: Ayes: Sieradzki, Aslakson, Benedict, Michalski, Nielsen, Pleimling, Shepherd

Nays: None

ADOPTED

6. Purchase of property for Shoreline Drive (Service One Credit Union) PLANNING

SUMMARY OF REQUEST: Approval to purchase a piece of property owned by Service One Federal Credit Union, to accommodate the proposed Shoreline Drive right-of-way. The property consists of a 2,178 square foot building on a 10,750 square foot site. The real estate was appraised at $86,000 and the fixtures separately appraised at $9,835. A cumulative offer of $95,835 was made by the City on January 26, 1998. The Credit Union presented a counter offer of $97,150 on February 6, 1998. Closing on the property will take place after a Baseline Environmental Analysis has been completed.

FINANCIAL IMPACT: $97,150 plus closing costs, to be paid for by block grant funds (CDBG).

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: Staff recommends approval of the resolution.

COMMITTEE RECOMMENDATION: The Committee of the Whole did not meet due to weather conditions.

Motion by Commissioner Benedict, seconded by Commissioner Aslakson to approve the purchase of a piece of property owned by Service One Federal Credit Union, to accommodate the proposed Shoreline Drive right-of-way.

ROLL VOTE: Ayes: Aslakson, Benedict, Michalski, Nielsen, Pleimling, Shepherd, Sieradzki

Nays: None

ADOPTED

7. Purchase of property for Shoreline Drive extension (Bogner) PLANNING

SUMMARY OF REQUEST: Approval to proceed with the purchase of a piece of property currently owned by Gary Bogner, to accommodate the proposed Shoreline Drive right-of-way. The property is bounded by Eastern, Ottawa, vacated Clay and U. S. Business 31 and consists of approximately, 16,234 square feet. The land was appraised at $57,000. Mr. Bogner, through his attorney, rejected the City’s initial $57,000 offer, and countered with a demand of $70,450. On the advise of City counsel, the parties have agreed to split the difference and settle at $63,727.50 in order to avoid protracted litigation and associated expenses. Purchase of the property will be contingent upon the findings of a Baseline Environmental Assessment (BEA) to be completed prior to closing.

FINANCIAL IMPACT: $63,727.50 plus closing costs, to be paid for by block grant funds (CDBG).

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Staff recommends approval of the resolution.

COMMITTEE RECOMMENDATIONS: The Committee of the Whole did not meet due to weather conditions.

Motion by Commissioner Aslakson, seconded by Vice Mayor Shepherd to proceed with the purchase of a piece of property currently owned by Gary Bogner, to accommodate the proposed Shoreline Drive right-of-way.

ROLL VOTE: Ayes: Benedict, Michalski, Nielsen, Pleimling, Shepherd, Aslakson

Nays: Sieradzki

ADOPTED

8. Sale of 421 W. Webster (formerly 26 Strong) PLANNING

SUMMARY OF REQUEST: Approval to proceed with the sale of a moved house located at 421 W. Webster to John and Carey Rolewicz for $32,500. Subject house had been moved to its present location at Fifth and Webster from 26 Strong. The City’s original asking price was $35,500, which reflects the costs incurred to relocate the house and provide a new foundation. This house has been shown numerous times, and no other offers have been forthcoming to date. This house failed to draw a bid during a request for bids, which took place this past September.

FINANCIAL IMPACT: If approved, the City will absorb a net loss of $3000 on the house. This figure does not include staff time in showing the house, or foregone property taxes. Both of these figures will continue to increase the longer the house remains unsold.

BUDGET ACTION REQUIRED: None

STAFF RECOMMENDATION: Staff therefore recommends approval of the resolution, and for the Mayor and City Clerk to sign off on the deed.

Motion by Vice Mayor Shepherd, seconded by Commissioner Benedict to proceed with the sale of a moved house located at 421 W. Webster to John and Carey Rolewicz for $32,500.

ROLL VOTE: Ayes: Michalski, Nielsen, Pleimling, Shpherd, Sieradzki, Aslakson, Benedict

Nays: None

ADOPTED

9. Muskegon Recreation Club.

SUMMARY OF REQUEST: Approval of a request from Muskegon Recreation Club to recognize them as a Non-Profit Organization for the purpose of obtaining a Gaming License issued by the Michigan Lottery. This will enable the club to hold a raffle in conjunction with Muskegon County Child Abuse Council to generate funds for both organizations.

BUDGET ACTION REQUIRED: None

FINANCIAL IMPACT: None

STAFF RECOMMENDATION: Staff recommends adoption of a resolution recognizing Muskegon Recreation Club as a non-profit organization.

COMMITTEE RECOMMENDATION: The Committee of the Whole did not meet due to weather conditions.

Commissioner Michalski would like an update on 1593 Jefferson. County Commissioner Funkhauser invited the member of the City Commission to a lunch (Dutch Treat).

Commissioner Michalski would like to have all new employees introduced to the Commission. Is a zoning change in order for the Old Baker College? The city Attorney and City Manager will look into this matter.

Vice Mayor Shepherd asked what the environmental inspectors do in the winter. The Dobben lot looks much better with the old cars removed. The HDC meetings have been cancelled because of a lack of quorum.

Commissioner Pleimling would like back up for the Planning Commission agenda.

Commissioner Aslakson would like to know the progress of the resisting and opposing charges.

Various comments were heard from the public.