City Commission Minutes 08-14-2018

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
          AUGUST 14, 2018 @ 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, August 14, 2018.
Commissioner Willie German, Jr., 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, Vice Mayor Eric Hood Commissioners
Ken Johnson, Byron Turnquist, Willie German, Jr., and Dan Rinsema-Sybenga,
City Manager Frank Peterson, City Attorney John Schrier, and City Clerk Ann
Meisch.
Absent:     Commissioner Debra Warren
INTRODUCTIONS/PRESENTATION:
   A. Presentation of 2018 Beautification Awards
Recipients of the Residential and Business 2018 Neighborhood Beautification
Awards were recognized for their effort in making the city a beautiful place.
Those present were presented with a Certificate of Recognition.
2018-58     CONSENT AGENDA:
   A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve the minutes of the July 24, 2018 Regular
Meeting.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the minutes.
   B. Special Event Liquor License – Farmers Market for Farm to Table Dinner –
      City Clerk
SUMMARY OF REQUEST: The Muskegon City Clerk’s Office is organizing our 3rd

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annual Farm-to-Table fundraiser dinner to benefit the Muskegon Farmers Market
and is seeking City Commission approval to apply for license for Beer, Wine, and
Spirit sales for this event. The Farmers Market does have a liquor license but the
licensed area does not extend beyond the barn.
FINANCIAL IMPACT:        $50 permit from the State for every date requested.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:        To approve a special liquor license for the
September 6, 2018 Farm-to-Table Fundraiser dinner.
   D. Annex Lease        City Manager
SUMMARY OF REQUEST: The City entered into a lease with ImaJam, Inc. in 2015.
ImaJam planned to operate a sports training facility on the site. The owner has
been unsuccessful in his attempts to do so. Both parties feel that it is in the best
interest of the community to terminate the lease and allow the city to find a new
operator for the site. As part of the lease termination, the City will maintain the
existing lease with Mercy Health, Inc., which has three years remaining on the
initial term and one additional 5-year extension. Additionally, the City will take
ownership of the personal property located on site as well as the related
financial obligations associated with that personal property. City staff has been
working with a local investor that has a strong interest in stepping in to operate
the facility; an agreement should be ready for Commission consideration in the
next 60 days.
FINANCIAL IMPACT:        None at this time.
BUDGET ACTION REQUIRED:         None at this time.
STAFF RECOMMENDATION:           To approve the request and authorize staff to
sign the lease termination.
   E. Purchase Agreement – 880 First          City Manager
SUMMARY OF REQUEST: City staff is seeking permission to enter into a purchase
agreement with Core Development for 880 First Street. This building was
acquired by the City of Muskegon in 2015. The $425,000 purchase price will
reimburse the City’s Public Improvement Fund most of the $500,000 invested in
the property to-date. The remainder of the investment will be recovered in the
initial years of completion of the development as a result of income tax
revenues. The property is located in the Downtown Development Authority, and
any incremental property tax growth will benefit that component unit of the
City’s budget.
FINANCIAL IMPACT:     $425,000 minus closing costs deposited into the City’s
Public Improvement Fund.
BUDGET ACTION REQUIRED:         None at this time.


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STAFF RECOMMENDATION:          To authorize the City Manager to enter into a
sales agreement to sell the property at 880 First Street for $425,000 to Core
Development.
   G. Memorandum of Understanding – Justice Assistance Grant              Public
      Safety Director
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the Director and the City Manager to enter into an
agreement with the City of Muskegon Heights and Muskegon County in regards
to the disbursement of the FY 2018 Justice Assistance Grant. It is further
requested that the Mayor be authorized to sign the Memorandum of
Understanding. Note that the time is of the essence as this grant requires a
governing body review period and the grant submission and the grant deadline
is August 22nd.
Although the Bureau of Justice Assistance has designated us as being in a
disparate funding situation due to the County providing more than 50% of the
jail facilities, our proposal is to keep the allocations exactly as they initially came
down the BJA which is as follows: County of Muskegon $0; City of Muskegon
$23,030 and the City of Muskegon Heights $14,941. Note that BJA uses crime
data versus population in making these allocation decisions.
The City of Muskegon portion is planned to be used in continuation of the
manner in which the previous year’s JAG funding was used which is for the
prosecution of city ordinance cases dealing primarily with neighborhood issues.
FINANCIAL IMPACT:          None
BUDGET ACTION REQUIRED:           None
STAFF RECOMMENDATION:             Staff recommends approval of this request.
   H. Rezoning Request for a Portion of the Property at 710 Pulaski Avenue
      2nd Reading Planning & Economic Development
SUMMARY OF REQUEST: Request to rezone a portion of the property at 710
Pulaski Avenue from I-1, Light Industrial to B-4, General Business.
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 July 12 meeting, with four
members absent.
   I. Sale of City-Owned Property at 1870 Huizenga Street & 1080 E. Holbrook
      Avenue       Planning & Economic Development


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SUMMARY OF REQUEST: Newkirk Electric, located at 1875 Roberts Street, has
requested to purchase the two vacant, industrially-zoned properties to expand
their outdoor storage area. They are offering $30,000 and to split the closing
costs. 1870 Huizenga is considered a buildable lot, but 1080 E. Holbrook is not
large enough to be considered buildable. Staff is requesting permission to enter
into a purchase agreement with the applicant.
FINANCIAL IMPACT:        The City will see increased revenue from the sale of the
lots.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommend approval of the sale.
   K. Launch Ramp Ordinance Change                   Department of Public Works
SUMMARY OF REQUEST: To amend Chapter 58 Parks and Recreation ordinance
to clarify daily and annual launch ramp permit parameters, vessel and trailer size
restrictions, and commercial use of the City of Muskegon launch ramps.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approve the modified language for the
ordinance.
   L. City Survey Services      Department of Public Works
SUMMARY OF REQUEST: Authorize staff to enter into an engineering services
agreement with Fleis & VandenBrink Engineering to provide survey services for
upcoming projects. The value of the agreement shall not exceed $27,110.
Requests for Proposals were solicited for this contract with Westshore Consulting
and Fleis & VandenBrink Engineering submitting proposals. Both proposals were
reviewed by staff and the Fleis & VandenBrink proposal is recommended.
FINANCIAL IMPACT:        Not to exceed $27,110.
BUDGET ACTION REQUIRED:        None. Contract will be funded out of capital
projects included in the 2018/2019 budget.
STAFF RECOMMENDATION:          Authorize staff to enter into an engineering
services agreement with Fleis & VandenBrink Engineering.
   M. Landscaping        DPW/Filtration
SUMMARY OF REQUEST: Authorize staff to enter into a landscaping agreement
at Water Filtration Plant with Weesies Brothers Garden Center since they
submitted the lowest responsible bid of $35,495.
FINANCIAL IMPACT:        $35,495
BUDGET ACTION REQUIRED:         The project is funded in FY 2018-19

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STAFF RECOMMENDATION:       Authorize staff to enter into an agreement with
Weesies Brothers Garden Center for a cost of $35,495.
   N. Fence Replacement        DPW/Filtration
SUMMARY OF REQUEST: Authorize staff to enter into a fence replacement
agreement at Water Filtration Plant with Justice Fence since they submitted the
lowest responsible bid of $89,500.
FINANCIAL IMPACT:        $89,500
BUDGET ACTION REQUIRED:        The project is funded in FY 2018-19
STAFF RECOMMENDATION:           Authorize staff to enter into an agreement with
Justice Fence for a cost of $89,500.
   O. Excavating DPW/Filtration
SUMMARY OF REQUEST: Authorize staff to enter into an excavating agreement
at Water Filtration Plant with Jackson-Merkey Contractors since they submitted
the lowest responsible bid of $88,365.
FINANCIAL IMPACT:        $88,365
BUDGET ACTION REQUIRED:        The project is funded in FY 2018-19
STAFF RECOMMENDATION:         Authorize staff to enter into an agreement with
Jackson-Merkey for a cost of $88,365.
   P. Membrane Roof on Clearwells DPW/Filtration
SUMMARY OF REQUEST: Authorize staff to enter into a roof installation
agreement on clearwells at Water Filtration Plant with Ostrander Roofing since
they submitted the lowest responsible bid of $440,000.
FINANCIAL IMPACT:        $440,000
BUDGET ACTION REQUIRED:        The project is funded in FY 2018-19
STAFF RECOMMENDATION:          Authorize staff to enter into an agreement with
Ostrander Roofing for a cost of $440,000.
   Q. Salt Box     DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) Salt Box from Arista Truck Systems, Inc. This unit was ordered by
another community that could not complete the sale, therefore, Arista is offering
this unit at a considerable discount. The price of the unit is $14,999, compared to
$18,807. A savings of $3,808.
FINANCIAL IMPACT:        $14,999
BUDGET ACTION REQUIRED:        None. Amount is what was budgeted.
STAFF RECOMMENDATION:          Authorize staff to purchase on (1) Salt Box from


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Arista Truck Systems, Inc.
   R. Concrete Breaker DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) Concrete Breaker from Midland Engine, the lowest qualified
bidder.
FINANCIAL IMPACT:            $12,500
BUDGET ACTION REQUIRED:              None. Amount is what was budgeted.
STAFF RECOMMENDATION:        Authorize staff to purchase one (1) Concrete
Breaker from Midland Engine.
   S. Back Hoe     DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) Back Hoe from Michigan Cat for a purchase price of
$97,053.61. With our buyback program, Michigan Cat is the most cost effective
machine to buy.
FINANCIAL IMPACT:            $97,053
BUDGET ACTION REQUIRED:              None. Amount is what was budgeted.
STAFF RECOMMENDATION:                Authorize staff to purchase one (1) Back Hoe
from Michigan Caterpillar.
   T. City Manager Employment Agreement                   Mayor’s Office
SUMMARY OF REQUEST: Approval of the Agreement as submitted.
FINANCIAL IMPACT:            None.
BUDGET ACTION REQUIRED:              None at this time.
STAFF RECOMMENDATION:         To approve the employment agreement and
authorize the Mayor and Clerk to sign.
   U. Adopt a Resolution Approving the Liquor License Application for Pigeon
      Hill Brewing Company, LLC     City Clerk
SUMMARY OF REQUEST: To adopt a resolution approving the request for a
Liquor License for Pigeon Hill Brewing Company, LLC, 895 Fourth Street, to be
licensed as a Micro Brewer, Small Wine Maker, Manufacturer of Mixed Spirit
Drink, and Small Distiller.
FINANCIAL IMPACT:            None
BUDGET ACTION REQUIRED:              None
STAFF RECOMMENDATION:                Adopt a resolution approving the request.
   V. Arena Lease and Management Agreement – Rad Dad’s City Manager
SUMMARY OF REQUEST: City staff is requesting approval of the lease agreement

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and corresponding management agreement for the operations of Rad Dad’s
Tacos and Tequila in the LC Walker Arena.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None at this time.
STAFF RECOMMENDATION:           To approve the agreements and authorize the
Mayor and Clerk to sign.
Motion by Commissioner Johnson, second by Vice Mayor Hood, to approve the
consent agenda as presented, except items C, F, and J.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
           German.
            Nays: None
MOTION PASSES
2018-59     ITEMS REMOVED FROM THE CONSENT AGENDA:
   C. Designation of Voting Delegates for the Michigan Municipal League
      Annual Business Meeting       City Clerk
SUMMARY OF REQUEST: To designate by action of the Commission, one of our
officials who will be in attendance at the Convention as an official
representative to cast the vote of the municipality at the Annual Meeting; and,
if possible, to designate one other official to serve as an alternate.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to designate Mayor Stephen J. Gawron as the MML representative and
Commissioner Willie German, Jr., as the alternate.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, German, and Rinsema-
           Sybenga
            Nays: None
MOTION PASSES
   F. 1000 West Western Avenue Sale and Development Agreement                City
      Manager
SUMMARY OF REQUEST: The City Commission accepted a $249,000 purchase
offer from Smith Equities in 2016. After a lengthy due diligence period, the parties
entered into a letter of intent that would help guide the development of a
purchase agreement. The purchase agreement is in final draft form, and the
terms are agreeable to both Smith Equities and City Staff.

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The Purchase Agreement outlines the purchase price as well as the
development obligations of both parties. The City has a number of obligations in
development agreement, including the relocation of infrastructure – such as the
bike path and the roadway to the Hartshorn Launch Ramp – and the
implementation of improvements at the marina’s facilities. The City’s costs
associated with this infrastructure will be recovered as part of a Brownfield
Reimbursement Plan. Additionally, the marina amenity improvements will result
in increased revenue from both the new condominium association and the
marina slip holders. It is anticipated that the initial phase of the development will
result in approximately $170,000 in new property tax revenue annually, which will
be captured as part of the Brownfield Plan and used to reimburse the City’s
expenses. Additional phases of the development will likely result in significantly
more property tax revenue. It is also anticipated that the initial phase of the
development will result in $40,000 - $60,000 in new local Income Tax revenues.
The proceeds from the initial land sale will benefit the City’s Public Improvement
Fund.
FINANCIAL IMPACT:     $250,000 minus closing costs – deposited to the City’s
Public Improvement Fund.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:            To authorize the city manager to enter into the
sale and development agreement with Harbor West, LLC, consistent with the
terms of the Letter of Intent dated March 2018.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga
to authorize the city manager to enter into the sale and development
agreement with Harbor West, LLC, consistent with the terms of the Letter of Intent
dated March 2018.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, German, Rinsema-Sybenga, and
           Turnquist
             Nays: None
MOTION PASSES
   J. Sale of City-Owned Property in the Seaway Industrial Park         Planning &
      Economic Development
SUMMARY OF REQUEST: MTC Enterprises of Michigan, Inc has requested to
purchase lots 1 and 2 in the Seaway Industrial Park. They are offering $300,000
total for both lots and are proposing to construct a provisioning center on one
parcel and either a cultivation building or processing center on the other parcel.
The offer is contingent upon unencumbered title and their ability to obtain State
and local licensing within 120 days of acceptance of the proposal. If they need
additional time to obtain licensing and all necessary approvals, they will agree


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to pay the City $3,000 per month non-refundable but credited towards the
purchase price at closing. Staff is requesting permission to enter into a purchase
agreement with the applicant.
FINANCIAL IMPACT:        The City will see increased revenue from the sale of the
lots.
BUDGET ACTION REQUIRED:        None.
STAFF RECOMMENDATION:          Staff recommend approval of the sale.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the sale.
ROLL VOTE: Ayes: Gawron, Hood, German, Rinsema-Sybenga, Turnquist, and
           Johnson
            Nays: None
MOTION PASSES
2018-60     NEW BUSINESS:
   A. City-MDOT Agreement; Black Creek Road; Sherman Blvd to Latimer Drive
      DPW/Engineering
SUMMARY OF REQUEST: Approved the contract with MDOT for the Black Creek
Road construction between Sherman Boulevard and Latimer Drive and approve
the resolution authorizing the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT:         MDOT’s participation is limited to the approved federal
funds of $340,000. The estimated total construction cost is $568,100 plus
engineering cost.
BUDGET ACTION REQUIRED:        None at this time, this project is included in the
18-19 budget.
STAFF RECOMMENDATION:         Approve the contract and resolution authorizing
the Mayor and Clerk to sign both.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the contract and resolution authorizing the mayor and clerk to sign
both.
ROLL VOTE: Ayes: Hood, German, Rinsema-Sybenga, Turnquist, Johnson, and
           Gawron
            Nays: None
MOTION PASSES
   B. City Hall Duct Cleaning Department of Public Work
SUMMARY OF REQUEST: Award a contract for duct cleaning at City Hall to
Modernistic, the lowest responsible bidder. Three contractors were contacted,

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and two supplied bids as follows:
Modernistic - $9,899
Stanley Steamer - $13,832
FINANCIAL IMPACT:        $9,899
BUDGET ACTION REQUIRED:           None. A City Hall upgrade project is included in
the capital project list of the 2018/2019 budget.
STAFF RECOMMENDATION:           Award the project to the low bidder, Modernistic.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to award the
project to the low bidder, Modernistic.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
           Hood
            Nays: None
MOTION PASSES
   C. Steven Street Storm Sewer Outlet Repairs       Department of Public Works
SUMMARY OF REQUEST: The DPW is requesting permission to rent equipment
and purchase materials necessary to complete repairs to the Stevens Street
Storm Sewer Outlet. The storm sewer outlet has partially collapsed and is causing
substantial erosion. An MDEQ permit has been obtained for the work and bids
were taken where feasible for the rental of equipment and purchase of
materials necessary for the repairs. Labor to be completed by Highway
Department staff.
FINANCIAL IMPACT:       Materials - $12,208.20 ($4,208.20 Pipe + $8,000.00
Drainage Structure) Equipment - $2,935.00 (Excavator Rental)
BUDGET ACTION REQUIRED:       None at this time. Equipment and material
purchases will be funded from the Local Street Fund.
STAFF RECOMMENDATION:          Authorize staff to rent equipment and materials
to make repairs to the Stevens Street Storm Water Outlet.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
authorize staff to rent equipment and materials to make repairs to the Stevens
Street Storm Water Outlet.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
           Hood
            Nays: None
MOTION PASSES
   D. 2018 Capital Improvements Projects – McGraft Park Lot Resurfacing
      Department of Public Works

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SUMMARY OF REQUEST: Award the resurfacing contract (H-1716) for crushing
and shaping of the existing parking lot and driveway at McGraft Park to the low
bidder. Three contractors submitted bids for this project as follows:
Accurate Excavators - $108,512.29
Jackson-Merkey Contractors - $112,453.90
Epic Excavating - $113,951.45
FINANCIAL IMPACT:        $108,512.29
BUDGET ACTION REQUIRED:      None at this time. The project will be funded
through a planned capital improvement project and from the McGraft Park
Trust Fund.
STAFF RECOMMENDATION:           Award the project to the low bidder, Accurate
Excavators.
Motion by Commissioner Turnquist, second by Commissioner Johnson, to
authorize staff to rent equipment and materials to make repairs to the Stevens
Street Storm Water Outlet.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
           German
            Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission meeting adjourned at 6:40 p.m.


                                       Respectfully Submitted,




                                       Ann Marie Meisch, City Clerk, MMC




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