City Commission Minutes 06-27-2017

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
             JUNE 27, 2017 @ 5:30 P.M.
   MUSKEGON CITY COMMISSION CHAMBERS
  933 TERRACE STREET, MUSKEGON, MI 49440
                                 MINUTES

The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, June 27, 2017. George
Monroe, Evanston Avenue Baptist, opened the meeting with prayer, after which
the Commission and public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present:     Mayor Stephen J. Gawron, Commissioners Ken Johnson, Debra
Warren, Dan Rinsema-Sybenga, and Byron Turnquist, City Manager Franklin
Peterson, City Attorney John Schrier, and City Clerk Ann Meisch.
Absent:     Vice Mayor Eric Hood (arrived at 5:52 p.m.), Commissioner Willie
German, Jr. (arrived at 6:00 p.m.)
2017-50     CONSENT AGENDA:
      A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the June 12, 2017 Worksession
Meeting and the June 13, 2017 Regular City Commission Meeting.
FINANCIAL IMPACT:       None
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Approval of the minutes.
      B. One-Time or Occasional Users of Kitchen 242 – User Fee Change City
         Clerk
SUMMARY OF REQUEST: Current fees for use of Kitchen 242 are $15 per hour with
a Security Deposit of $50. Staff is seeking City Commission approval to amend
the fee schedule for rental for one-time or occasional users to $25 per hour and
the Security Deposit to $100, effective July 1, 2017.
FINANCIAL IMPACT:       None
BUDGET ACTION REQUIRED:        None


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STAFF RECOMMENDATION:           Approval of the change in fees for one-time or
occasional users effective July 1, 2017.
      C. 2017-2018 Muskegon High School Community Officer Agreement
         Public Safety
SUMMARY OF REQUEST: To approve the 2017-2018 Muskegon High School
Community Officer Agreement. This agreement provides Muskegon High School
with a Community Officer during the nine months school is in session.
FINANCIAL IMPACT:     Muskegon Public Schools agrees to pay the City of
Muskegon $2,459.74 each month, from September 2017 through May 2018,
totaling $22,137.66.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:      Approve the 2017-2018 Muskegon High School
Community Officer Agreement and authorize the Mayor to sign.
      E. Amendment to the Zoning Ordinance – Signage           Planning &
         Economic Development
SUMMARY OF REQUEST: Staff-initiated request to amend Section 2334 of the
zoning ordinance to amend the rules on electronic message board signs and to
allow them in B-1, Limited Business Districts and WM, Waterfront Marine Districts,
as well as at churches in all zoning districts and all businesses that have been
granted a special use permit in residential districts.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION:        The Planning Commission unanimously
recommended approval of the ordinance amendment, with one member
absent.
                        ~ SECOND READING REQUIRED ~
      F. Rezoning Request for Several Properties to R-2, Single Family Medium
         Density Residential District Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone several properties from
R-1, Single Family Low Density Residential District to R-2, Single Family Medium
Density Residential District.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION:              The Planning Commission unanimously

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recommended approval of the request at their June 15 meeting, with one
member absent.
                        ~ SECOND READING REQUIRED ~
      G. Rezoning Request for Several Properties to R-3, Single Family High
         Density Residential District Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone several properties from
R-1, Single Family Low Density Residential District to R-3, Single Family High
Density Residential District.
FINANCIAL IMPACT:       None
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION:       The Planning Commission unanimously
recommended approval of the request at their June 15 meeting, with one
member absent.
                        ~ SECOND READING REQUIRED ~
      H. 2017 CDBG/HOME Budget Recommendations Community and
         Neighborhood Services
SUMMARY OF REQUEST: To accept the 2017 Budget recommendations from
Citizen’s District Council for CDBG/HOME Allocations.
FINANCIAL IMPACT:       Budget will be published for release of funds request.
BUDGET ACTION REQUIRED:         To finalize the budget for the CNS department
and direct staff to publish approved 2017 ACDBG/HOME Allocation and Budget
for Release of Funds and Environmental Review of Projects.
STAFF RECOMMENDATION:     To accept and approve the recommended 2017
CDBG and HOME Budgets from Citizens District Council.
COMMITTEE RECOMMENDATION:             The Citizens District Council has made their
recommendations.
      I. ITEM REMOVED PER STAFF REQUEST
      J. Set Public Hearing for Amendment to Brownfield Plan – Liberty Building
         (Formerly Ameribank) 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 which will be purchased by
Liberty Development, LLC, located at 880 First Street, in the Brownfield Plan.


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FINANCIAL IMPACT:        Brownfield Tax Increment Financing will be used to
reimburse the developer and the City for “eligible expenses” incurred in
association with development of the Liberty project, which is approximately
$2,564,280. Liberty Development, LLC cost for the development of the property is
approximately $6.85 million in private investment, resulting in a substantial
increase in the local and school taxes generated by the property.
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 June 15, 2017 and approved the Brownfield Plan Amendment and
recommends the approval of the Brownfield Plan Amendment to the Muskegon
City Commission.
Motion by Commissioner Turnquist, second by Commissioner Johnson, to
approve the consent agenda as presented, minus items D.
ROLL VOTE: Ayes: Gawron, Warren, Rinsema-Sybenga, Turnquist, and Johnson
            Nays: None
MOTION PASSES
2017-51ITEMS REMOVED FROM THE CONSENT AGENDA:
      D. Space Fruit, LLC Concession for City of Muskegon Parks       Department
         of Public Works
SUMMARY OF REQUEST: Staff is asking permission to enter into a 1-year
contractual agreement with Bri Schott & Kelvin Pearson of Space Fruit LLC, at
Pere Marquette Park, located within the City of Muskegon, to sell various Fruit
Pearl items, as stated in their proposal, from a mobile concession trailer.
FINANCIAL IMPACT:        Concession revenue is 10% of gross receipts.
BUDGET ACTION REQUIRED:        None.
STAFF RECOMMENDATION:         Authorize DPW staff to enter into concession
agreement with Bri Schott & Kelvin Pearson of Space Fruit, LLC.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to authorize DPW staff to enter into concession agreement with Bri Schott & Kelvin
Pearson of Space Fruit, LLC
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, and Gawron
            Nays: None
MOTION PASSES



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2017-52   PUBLIC HEARINGS:
      A. Request for an Industrial Facilities Exemption Certificate – Lakeside
         Surfaces Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended,
Lakeside Surfaces, Inc, 2265 Black Creek Road, has requested the issuance of an
Industrial Facilities Tax Exemption Certificate (IFT). The total capital investment
will be $2,387,666 in real property and will create 26 new jobs in the City. They
are eligible for a 12-year abatement per the City’s IFT policy.
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 twelve (12) years for real property.
PUBLIC HEARING COMMENCED:               No public comments were received
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to close the public hearing and approve the resolution granting an Industrial
Facilities Exemption Certificate for a term of twelve years for real property for
Lakeside Services.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, and Gawron
             Nays: None
MOTION PASSES
      B. Request to Transfer Two Industrial Facilities Exemption Certificates to
         KLO Acquisition, LLC Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, KLO
Acquisition, LLC, 1790 Sun Dolphin Drive, has requested the transfer of two
personal property Industrial Facilities Tax Exemption Certificates (IFT) from
Ameriform Acquisition, LLC. These would include Certificate numbers 2011-302
(set to expire at the end of 2019) and 2014-435 (set to expire at the end of 2023).
FINANCIAL IMPACT: The City will continue to capture the same amount of
property taxes generated by the original IFT.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           Approval of the resolution granting the transfer of
the IFT’s.
PUBLIC HEARING COMMENCED:               No public comments were received.
Motion by Commissioner Warren, second by Commissioner Johnson, to close
the public hearing and approve the resolution granting transfer of the IFT’s to KLO
Acquisitions, LLC.

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ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Warren
             Nays: None
MOTION PASSES
2017-53      NEW BUSINESS:
      A. Concurrence with the Housing Board of Appeals Notice and Order to
         Demolish     Public Safety
          533 Jackson Avenue
          1440 Jiroch Street
          1460 Hoyt Street
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within thirty (30)
days or infraction tickets may be issued. 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 contracts for
demolition with the lowest responsible bidder or staff may issue infraction tickets
to the owner, agent or responsible party if they do not demolish the structure.
FINANCIAL IMPACT:         General Funds
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to concur with the Housing Board of Appeals notice and order to demolish 533
Jackson Avenue and 1440 Jiroch Street.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Warren
             Nays: None
MOTION PASSES
Motion by Commissioner Turnquist, second by Commissioner Johnson, to concur
with the Housing Board of Appeals notice and order to demolish 1460 Hoyt STreet
Avenue and 1440 Jiroch Street.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Warren
             Nays: None
MOTION PASSES




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      B. Adoption of 2017-18 Proposed Budget         Finance
SUMMARY OF REQUEST: At this time staff is transmitting to the City Commission
the proposed budget for fiscal year 2017-18 which starts July 1, 2017. An
electronic version of the budget has been distributed to Commissioners.
Additionally, the budget is available for public inspection on the City’s website
and at the City Clerk’s Office or Hackley Public Library.
The proposed budget has been reviewed in detail with staff at the June 12th
Worksession. A public hearing on the budget was held at the regular
Commission meeting the following evening on June 13th. City ordinance requires
that the budget be adopted by the Commission on or before the second
Commission meeting in June.
FINANCIAL IMPACT:        The budget is the City’s financial plan for the coming
fiscal year.
BUDGET ACTION REQUIRED:         None at this time.
STAFF RECOMMENDATION:           Approval of the proposed budget for the fiscal
year 2017-18.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
            Nays: None
      C. Change Order to add Harris Street Resurfacing from Sherman to Sun
         Dolphin to the Glenside, Sherman to Glen (H-1708) Engineering
SUMMARY OF REQUEST: Authorize staff to execute a change order with
McCormick Sand, Inc. adding the milling and resurfacing of Harris to the
Glenside project as per the proposal.
This request is contingent upon the approval of the proposed CIP projects in the
proposed 2017/2018 budget.
FINANCIAL IMPACT:        Estimated cost for construction is $113,859.28
BUDGET ACTION REQUIRED:         None at this time assuming the proposed
2017/2018 CIP is adopted.
STAFF RECOMMENDATION:           Authorize staff to execute a change order with
McCormick Sand, Inc.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
authorize staff to execute a change order with McCormick Sand, Inc.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           and Johnson
            Nays: None
MOTION PASSES

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      D. Hartshorn Marina Engineering Study         Department of Public Works
SUMMARY OF REQUEST: Authorize staff to enter into an engineering services
agreement with Abonmarche consulting to provide the preliminary engineering
as per the proposal and as called for by the Michigan Department of Natural
Resources grant.
FINANCIAL IMPACT: $60,000 DOLLARS, State of Michigan match of $30,000
BUDGET ACTION REQUIRED:         None if the proposed budget is approved.
STAFF RECOMMENDATION:       Authorize staff to enter into an engineering
services agreement with Abonmarche.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to authorize
staff to enter into an engineering services agreement with Abonmarche.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
            Nays: None
MOTION PASSES
      E. Adopt Michigan DNR Grant Resolution        Department of Public Works
SUMMARY OF REQUEST: To adopt the resolution and authorize the Mayor and
Clerk to sign the agreement between the Michigan Department of Natural
Resources and the City of Muskegon.
FINANCIAL IMPACT:        $30,000 is the city’s match.
BUDGET ACTION REQUIERD:         None is necessary if the proposed budget for
2017/2018 is approved.
STAFF RECOMMENDATION:         To approve the resolution and authorize the
Mayor and Clerk to sign the agreement.
Motion by Commissioner German, second by Commissioner Warren, to approve
the resolution and authorize the Mayor and Clerk to sign the agreement.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
            Nays: None
MOTION PASSES
      F. Sewer Rate Adjustment        Finance
SUMMARY OF REQUEST: In 2016 a resolution with a treatment rate for our
customers that is based on a multiplier of 1.49 times the rate the county bills the
city for wastewater was adopted. The 2017/18 budget calls for the multiplier to
be raised to 1.68 based on the recommendation of H. J. Umbaugh & Associates
to cover the costs of capital improvement needs of our aging infrastructure over

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the next ten years. Additionally the monthly sewer administration charge will
increase from $2.67 to $3.00.
FINANCIAL IMPACT:          None at this time.
BUDGET ACTION REQUIRED:        None at this time. The proposed rate change was
incorporated into the FY 2017-18 budget that was recently approved by the City
Commission.
STAFF RECOMMENDATION:            Adoption of the fee adjustment resolution.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve the fee adjustment regarding sewer rates.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren
             Nays: None
MOTION PASSES
      G. 2017 Sanitation Service Fee Finance
SUMMARY OF REQUEST: To adopt the resolution to begin charging a sanitation
service fee of $1.20 per month per residential utility bill. This charge will cover the
difference between what is currently being collected through property taxes
and what the City currently pays for residential sanitation.
FINANCIAL IMPACT:          None at this time.
BUDGET ACTION REQUIRED:        None at this time. The proposed rate change was
incorporated into the FY 2017-18 budget that was recently approved by the City
Commission.
STAFF RECOMMENDATION:            Adopt the resolution.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to approve the
2017 Sanitation Service Fee Resolution.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, Warren,
           and German
             Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public Comments were received.
2017-54      CLOSED SESSION:
      A. City Manager Evaluation
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to go into closed session for the City Manager’s Evaluation.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,

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           and Turnquist
           Nays: None
MOTION PASSES
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Turnquist,
to return to open session.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood.
           Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission meeting adjourned at 8:10 p.m.


                                        Respectfully Submitted,




                                        Ann Marie Meisch, MMC, City Clerk




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