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CITY OF MUSKEGON
CITY COMMISSION MEETING
JANUARY 12, 2016
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, MI at 5:30 p.m., Tuesday, January 12, 2016.
Reverend Tim VanderHaar, First Congregational Church, 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 Gawron, Vice Mayor Eric Hood, Commissioners Debra
Warren, Willie German, Jr., Dan Rinsema-Sybenga, Byron Turnquist, and Ken
Johnson, Acting City Manager Mohammed Al-Shatel, City Attorney John Schrier,
and City Clerk Ann Meisch.
2016-04 HONORS AND AWARDS:
A. Muskegon Catholic Central – 2015 Division 8 State Football
Champions
Mayor Gawron and the Commission congratulated the Muskegon Catholic
Central Crusaders Coach, Steve Czerwon, and the team for the Division 8 State
Championship and presented them with a Certificate of Recognition and a
sign.
2016-05 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the December 7, 2015
Worksession Meeting, the December 8, 2015 City Commission Meeting, the
December 16, 2015 Special Commission Meeting, and the January 4, 2016
Organizational Meeting.
FINANCIAL IMACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Approval of A Neighborhood Enterprise Zone Certificate Planning
and Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from John and Jeannie Platt for the new
construction of a home at 333 Terrace Point Circle. The property is located in a
Neighborhood Enterprise Zone for new construction. The application states that
the estimated cost for construction will be $395,323. The applicant has met local
and state requirements for the issuance of the NEZ 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: Approval of the NEZ certificate.
C. Sale of a Portion of the Property at 1690 Creston Street Planning and
Economic Development
SUMMARY OF REQUEST: Staff is seeking approval to sell a portion of the
buildable, industrial zoned lot at 1690 Creston Street to the adjacent business,
Production Fabricators, Inc. at 1608 Creston Street, which is located in Muskegon
Township. They are seeking to expand their business onto this lot with a building
addition. They are requesting to purchase about 40% of the 2.45 acre lot and to
also retain a 60’ by 180’ access easement on the remaining parcel for truck
access. By creating the easement on the lot, instead of selling this portion of the
land, it will allow the remaining lot to meet the minimum lot standards for a
buildable lot. The City leases space to Muskegon Central Dispatch on the
current lot for the communications tower located on site. The portion of the land
to be sold will not interfere with the portion leased by Muskegon Central
Dispatch. Production Fabricators has offered $15,000 for the portion of the lot.
Planning Commission approved the site plan for the building addition,
contingent upon the sale or the lot, at their December 2015 meeting.
FINANCIAL IMPACT: Staff recommends a sale price of $15,000.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval and signature of the purchase agreement,
easement agreement, and resolution.
E. Lease Agreement Between Envirologic and City of Muskegon
Planning and Economic Development
SUMMARY OF REQUEST: Envirologic, headquartered in Kalamazoo, has
provided environmental site assessment services for the City over the past
several years. Most recently, they were granted the contract for the USEPA Site
Assessment Grant. Since they will be in the City of Muskegon frequently over the
next few years while providing site assessment services for the grant, they have
agreed, and desire, to have a satellite office in the City. The lease will allow
Envirologic to have their Muskegon Satellite location at City Hall. The space
allocated will be approximately 170 square feet in the CNS department.
(However, it may be moved if that space is needed for another use in the
future.)
FINANCIAL IMPACT: Enviorlogic will not require any equipment to be provided
to them. They will pay a monthly rate of $300.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the lease and authorize the Mayor and
Clerk’s signatures.
F. MDOT - City Amending the Agreement for Muskegon and Webster
Engineering
SUMMARY OF REQUEST: Authorize staff to sign the amendment to the
agreement with Michigan Department of Transportation extending the
completion date of the project to May 27, 2016 instead of the December 31,
2015 date in the original agreement and adopt a resolution authorizing
Mohammed Al-Shatel to execute said amendment.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize staff to sign the agreement/contract
amendment.
G. Approval of 285 West Western Preliminary Expenses City Manager
SUMMARY OF REQUEST: As part of the potential redevelopment of 285 West
Western Avenue, the City of Muskegon will be required to submit a
new/updated application to the Michigan Economic Development
Corporation. To accomplish this, a number of items need to be completed,
including updated architectural drawings, updated cost estimates, and
updated project proformas. Further, there are a number of safety and security
improvements needed at the vacant building, including boarding broken
windows and addressing roof drainage issues. City staff is requesting permission
to expend up to $45,000 in pre-construction expenses at 285 West Western to
prepare the MEDC application, bid the project, and address a number of
pressing security and safety items.
FINANCIAL IMPACT: Up to $45,000
BUDGET ACTION REQUIRED: This change will be reflected in the Second Quarter
Status Report.
STAFF RECOMMENDATION: To authorize staff to expend up to $45,000 in pre-
construction expenses related to the redevelopment of 285 West Western and
to suspend the purchasing policy as it relates to the $45,000.00.
H. Approval of Trades-Services Procurement 2016 Proposals for CNS
Community and Neighborhood Services
SUMMARY OF REQUEST: To approve the following Trades - Services procured
through sealed bid proposals producing the lowest responsible bidder:
Appraisals – Midwest Real Estate Services
Building Contractor – Custom Exteriors
Electrical Contractor – Belasco Electric
Mechanical Contractor – Accurate Mechanical Services
Plumbing Contractor – Brett Noordhoff Plumbing
Property Maintenance – Walker Handyman Enterprises
Realtor – Greenridge Realty, Inc.
Specification Writer – Hager Consulting, LLC
Structural Engineer/Surveyor – Westshore Consulting
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the procured Trades Contractors and
Service providers for Community and Neighborhood Services during 2016 with
possible one year extension.
I. Assessing Agreement City Manager
SUMMARY OF REQUEST: Staff would like to continue utilizing Muskegon County
Equalization as our Assessor. The proposed agreement will be for five years
beginning July 1, 2016 but may be terminated with 90 days written notice. The
agreement calls for an annual base fee of $320,000 with a two percent increase
annually.
FINANCIAL IMPACT: $320,000 per year with a two percent increase annually.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To authorize the Mayor and Clerk to sign the
agreement.
J. Liquor License Request – Racquets, 446 Western Avenue Public
Safety
SUMMARY OF REQUEST: The Muskegon Police Department has received an
Application for Temporary Authorization from Downtown Pinnacle Properties
(dba Racquets Downtown Grill) for a charity event scheduled for February 4,
2016 to February 6, 2016. The liquor license request is to include Western Avenue
between 3rd and 4thStreets. Spirits will be served.
The State of Michigan Liquor Control Commission is asking for local commission
approval for use of the city street before the license is issued. This is a repeat
event and the Muskegon Police Department finds no reason to deny this
request.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the request.
L. Community Relations Committee Recommendations for Various City
Boards and Committees City Clerk
SUMMARY OF REQUEST: Accept the recommendations from the Community
Relations Committee and appoint to the
Board of Review – Tracie Webb and Don Correll
Citizen’s Police Review Board – David Bukala, Ruby Clark, Phyllis
Loudermill, and Quinton Cooley
Citizen’s District Council – Thomas Pastoor, Kim McDonald, and Geoffrey
Burr
Construction Board of Appeals – Chad Grinwis, Harold Callendar, and
Michael McPhall
Downtown Development Authority – Michael Kleaveland and Paul
Edbrooke
Election Commission – Wanda Matsey
Equal Opportunity Committee – Rosie Buchanan, Charlotte Johnson, and
Betty Cheeks
Historic District Commission – Andrea Riegler and Karen Panozzo
Housing Code Board of Appeals – Ed Simmons and Gregory Borgman
Housing Commission – Rosie Mae Walker
Income Tax Board of Review – Jason Meekhof
Local Development Finance Authority – Andy Wible and Jason Meekhof
Local Officer’s Compensation Commission – Virgie Jackson
Zoning Board of Appeals – Stephen Warmington
Accept the resignation of Charles Anderson from the Citizen’s Police Review
Board and David Wagner from the Citizen’s District Council.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval
Motion by Commissioner Johnson, second by Commissioner German, to
approve the consent agenda as read with the exception of items D and K.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
2016-06 ITEMS REMOVED FROM CONSENT AGENDA:
D. Operations Management Contract for Kitchen 242 – Pioneer
Resources & City of Muskegon Planning & Economic Development
SUMMARY OF REQUEST: The City contracted with Pioneer Resources to provide
operations management of the Farmers’ Market commercial kitchen (Kitchen
242) in May 2014. The contract technically expired several months ago,
although Pioneer Resources continues to provide operations management. The
new one year contract will start January 15, 2016.
FINANCIAL IMPACT: Per the terms of the contract, the manager shall provide
the staffing, management and operations of the facility. The City shall pay for
the utility costs. The manager shall track revenue and expenses and turn over
any net proceeds to the City.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the contract and authorize the Mayor
and Clerk’s signatures.
STAFF RECOMMENDATION: Approval
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to approve the contract and authorize the Mayor and Clerk’s signatures.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
K. LED Sign at the Farmer’s Market Engineering
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with Allsigns
LLC out of Muskegon to purchase and install an LED digital sign at the Farmer’s
Market using a 16 mm lighting system to enhance visibility for a cost of
$29,550.00.
Allsigns is being recommended as a result of the bid tabulation.
FINANCIAL IMPACT: Cost of purchase and installation of $29,550.
BUDGET ACTION REQUIRED: None at this time, however, future budget
reforecasts might have to be revised to account for this expense.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Allsigns LLC.
Motion by Commissioner German, second by Vice Mayor Hood, to authorize
staff to enter into an agreement with Allsigns LLC.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
2016-07 PUBLIC HEARINGS:
A. BID Special Assessment – Resolution Confirming Special Assessment
Roll Planning and Economic Development
SUMMARY OF REQUEST: The City Commission approved the creation of a BID
special assessment district at the November 24, 2015 meeting and the Special
Assessment Roll is now ready to be confirmed. The assessments will go towards
various downtown expenditures, including snow removal on sidewalks, spring/fall
cleanup and landscaping, holiday decorating, banners and directional signs,
marketing/advertising and art. The BID assessment includes both a “Class A”
and a “Class B” district. Since the November 24 Commission meeting, the
maximum amount to be assessed for Class B properties is $750, rather than the
$3,000 that is the maximum assessed for Class A properties.
In addition, if the Special Assessment Roll is confirmed, it is requested that the
City Commission authorize a loan payment to the BID in the amount of $45,000
to cover initial expenses for the BID until the assessment proceeds are collected.
FINANCIAL IMPACT: The total estimated cost of services within the BID is
$128,467.36 of which approximately 90% ($115,942.02) will be paid by the special
assessment to property owners, with the remaining cost being paid by the City. If
the load to the BID in the amount of $45,000 is approved, it will be paid back
with the assessments as they are collected.
BUDGET ACTION REQURIED: None
STAFF RECOMMENDATION: To approve the resolution approving the
confirmation of the special assessment roll and authorize the Mayor and Clerk to
sign. In addition, if the Special Assessment Roll is approved, to also approve the
$45,000 loan to the BID to cover initial expenses.
PUBLIC HEARING COMMENCED:
Cathy Brubaker-Clarke addressed the commission and presented information
regarding four letters received in opposition, they are from the following: Janski
LLC – 297 W. Clay #104; David L. Bolen – 750 Pine; Easter Jones Gill – 830 Pine,
840 Pine, 839 Pine, 845 Pine, and 849 Pine; Hairitage Properties, LLC – 935
Jefferson.
Alan Jager – Holton Duck Lake Road, Holton, MI 49425 owner of 275 W. Clay
spoke in opposition of the assessment.
Motion by Commissioner German, second Commissioner Rinsema-Sybenga, to
close the Public Hearing.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, Warren,
and German
Nays: None
MOTION PASSES
Motion by Commissioner Johnson, second Vice Mayor Hood, to approve the
resolution approving the confirmation of the special assessment roll and
authorize the Mayor and Clerk to sign. In addition, if the Special Assessment Roll
is approved, to also approve the $45,000 loan to the BID to cover initial
expenses.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:24 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk