City Commission Minutes 09-11-2018

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
       SEPTEMBER 11, 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, September 11, 2018.
Pastor Wally Reames, Central Assembly of God, 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., Debra Warren, and Dan
Rinsema-Sybenga, City Manager Frank Peterson, City Attorney John Schrier, and
City Clerk Ann Meisch.
2018-66     CONSENT AGENDA:
   A. Approval of Minutes      City Clerk
SUMMARY OF REQUEST: To approve minutes of the August 28, 2018 Regular
Meeting.
FINANCIAL IMPACT:       None
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Approval of the minutes.
   B. Approval of a Neighborhood Enterprise Zone Certificate – 662 Terrace
      Point Circle Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) Certificate has been received from Terrace Point Landing, LLC for the new
construction of a home at 662 Terrace Point Circle. The estimated cost for
construction is $203,417. The applicant has met local and state requirements for
the issuance of the NEZ certificate.


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FINANCIAL IMPACT:        Taxation will be applied as one-half of the previous
year’s state average principal residence millage rate to the value of the facility.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the NEZ Certificate.
   C. Approval of a Neighborhood Enterprise Zone Certificate – 664 Terrace
      Point Circle Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) Certificate has been received from Terrace Point Landing, LLC for the new
construction of a home at 664 Terrace Point Circle. The estimated cost for
construction is $199,760. The applicant has met local and state requirements for
the issuance of the NEZ certificate.
FINANCIAL IMPACT:        Taxation will be applied as one-half of the previous
year’s state average principal residence millage rate to the value of the facility.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the NEZ Certificate.
   D. Approval of a Neighborhood Enterprise Zone Certificate – 668 Terrace
      Point Circle Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) Certificate has been received from Terrace Point Landing, LLC for the new
construction of a home at 668 Terrace Point Circle. The estimated cost for
construction is $168,739. The applicant has met local and state requirements for
the issuance of the NEZ certificate.
FINANCIAL IMPACT:        Taxation will be applied as one-half of the previous
year’s state average principal residence millage rate to the value of the facility.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the NEZ Certificate.
   E. Approval of a Neighborhood Enterprise Zone Certificate – 670 Terrace
      Point Circle Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) Certificate has been received from Terrace Point Landing, LLC for the new
construction of a home at 670 Terrace Point Circle. The estimated cost for
construction is $168,739. The applicant has met local and state requirements for
the issuance of the NEZ certificate.
FINANCIAL IMPACT:        Taxation will be applied as one-half of the previous
year’s state average principal residence millage rate to the value of the facility.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the NEZ Certificate.

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   F. Sale of Property at 1078 Second Street            Planning & Economic
      Development
SUMMARY OF REQUEST: Staff initiated request to approve the purchase
agreement for the sale of the home at 1078 2nd Street to Rachel Stewart. This
home was recently purchased by the city, rehabbed and converted back into
a single-family home from a three-unit home.
FINANCIAL IMPACT:     The City will receive the amount of money as described
in the purchase agreement.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To approve the purchase agreement.
   G. Sale of A Buildable Lot at 654 Allen Avenue Planning & Economic
      Development
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 654
Allen Avenue to Denise Koetje to combine with her property at 650 Allen
Avenue, Muskegon, MI. The lot is 50 x 132 ft. and Ms. Koetje has offered $500 for
the property plus the fee to register the deed. She has a licensed day care out
of her home and would like to fence the property, install play equipment and
provide more space for the children in her care. She had already purchased 16
feet of this property in 2017. The City has owned the property since August 12,
2003 with no inquiries for potential construction. By combining this with Ms.
Koetje’s property; this will alleviate the city from continued maintenance and
place the property back on the tax rolls. The City has spent an average of
$395.00 per year in maintenance of the vacant lot since 2002.
FINANCIAL IMPACT:         The sale of this lot 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 authorize both the
Mayor and the Clerk to sign the resolution and deed.
   I. Certification of MERS Representatives             Finance
SUMMARY OF REQUEST: The MERS plan document provides that “the governing
body for each municipality shall certify the names of two (2) delegates to the
Annual Meeting. One delegate shall be a member who is an officer of the
municipality appointed by the governing body of the municipality. The other
delegate shall be a member who is not an officer of the municipality, elected
by the member officer/employees of the municipality.”
The City’s employee units previously agreed to a rotating system (based on date
of joining MERS) to select one official employee representative. This year the
official employee representative attending the MERS conference will be Diane

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Renkenberger from the Non Union.
It is recommended that Elizabeth Lewis (Finance Director) be designated as the
City’s employer delegate.
FINANCIAL IMPACT:        Registration for the MERS conference in Grand Rapids,
MI is $250 per person. Additionally, mileage, hotel and related costs will be
incurred.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:         Certification of Elizabeth Lewis and Diane
Renkenberger to be the City’s officer and employee delegates at the MERS
annual meeting in Grand Rapids on October 4 and 5, 2018.
   J. Supplemental MERS Contribution         Finance
SUMMARY OF REQUEST: For the fiscal year that ended June 30, 2018, staff
conservatively budgeted for pension costs. The amount the City was expensing
each pay period for our pension costs was conservatively calculated, this
created a surplus. At this time staff believes it is appropriate to take this
opportunity to make a $111,257.58 supplemental payment (above the actuarial
computed amount) to MERS. This is money that the city would be required to
pay to MERS eventually. Paying early, while the city is in a position to do so, may
help to ease some pressure on future city budgets.
FINANCIAL IMPACT:         $111,257.58 supplemental payment to MERS.
$111,257.58 will be paid from monies already set aside for MERS in the collector
fund.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:        Authorize staff to make a supplemental
$111,257.58 payment to MERS.
   K. 1000 W. Western - Approve First Amendment to First Amended and
      Restated Real Estate Sale and Development Agreement City Manger
SUMMARY OF REQUEST: To approve the First Amendment and Restated Real
Estate Sale and Development Agreement for 1000 W. Western.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To authorize the city manager to enter into the
Agreement.
   L. Approve CRC Recommendations to Accept Resignations and Appoint
      Members to Fill Various Vacancies City Clerk
SUMMARY OF REQUEST: To accept resignations and appointment
recommendations for various community relations committees, boards,

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authorities, and commissions, as follows:
      Citizen Police Review Board
      Accept the resignation of Ellouise Hieftje (Neighborhood Association
      Representative) and Carlos Flores (Member of a Minority Based
      Organization) and to appoint Teresa Emory (Neighborhood Association
      Representative)
      CDBG/CDC
      Accept the resignation of Tom Pastoor (Citizen at Large) and to appoint
      Eleanor Canter (Citizen at Large)
      Construction Code Board of Appeals
      To Appoint Brion Boucher (Architect)
      Housing Commission
      Accept the resignation of Maxine Lenear (Citizen) and to affirm the City
      Manager’s Appointment of Ken Grant
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION: To concur with the recommendations of the
Community Relations Committee and approve the resignations and
appointments.
Motion by Commissioner Warren, second by Commissioner Johnson, to approve
the consent agenda as presented, except item H.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
            Nays: None
MOTION PASSES
2018-67    ITEMS REMOVED FROM CONSENT:
   H. Police Cruisers    DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase seven (7) new police cruisers from Berger Chevrolet, off the Oakland
County Contract, which is the lowest price available. This will create a financial
impact of $250,117.00 that was budgeted for out of the Equipment Division.
FINANCIAL IMPACT:        $250,117.00
BUDGET ACTION REQUIRED:         None. Amount is what was budgeted.
STAFF RECOMMENDATION:           Authorize staff to purchase seven (7) new police
cruisers from Berger Chevrolet.

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Motion by Commissioner German, second by Commissioner Warren, to
authorize staff to purchase seven new police cruisers from Berger Chevrolet.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson
            Nays: None
MOTION PASSES
2018-68   PUBLIC HEARINGS:
   A. Request to Conduct a Public Hearing of the Community & Neighborhood
      Services Department Consolidated Annual Performance Evaluation Report
      (CAPER 2017)     Community & Neighborhood Services
SUMMARY OF REQUEST: To conduct a public hearing of the 2017 CAPER for
projects funded with CDBG and HOME HUD Entitlements to the City of
Muskegon Community and Neighborhood Services Department.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:       To submit the 2017 CAPER including any public
comments received during the 20-day comment period ending September 26,
2018.
Motion by Commissioner Johnson, second by Commissioner German, to close
the public hearing and to submit the 2017 CAPER including any public
comments received during the 20 day comment period ending September 26,
2018.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
            Nays: None
MOTION PASSES
2018-69     NEW BUSINESS:
   A. 2018 Capital Improvement Projects – Remembrance Drive Reconstruction
      Department of Public Works
SUMMARY OF REQUEST: Award contract (H-1720) for reconstruction, storm
sewer installation, sanitary sewer, curb and gutters on Remembrance Drive from
Keating Avenue south to the entrance of the new KL Industries facility. Four
contractors submitted bids for this project as follows:
      Jackson-Merkey Contractors, Inc.       $454,559.00
      Connan Inc.                            $497,572.55
      Diversco Construction Co.              $593,926.80

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      Dykema Excavators, Inc.                  $672,897.00
FINANCIAL IMPACT:        $454,559.00
BUDGET ACTION REQUIRED:     None. The project will be funded through
planned capital improvement project.
STAFF RECOMMENDATION:           Award the project to the low bidder, Jackson-
Merkey Contractors, Inc.
Motion by Commissioner Johnson, second by Vice Mayor Hood, to award the
project to the low bidder, Jackson-Merkey Contractors, Inc.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
            Nays: None
MOTION PASSES
   B. Rental Ordinance Changes         Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the approval of the Rental Ordinance changes. This will
allow Building Safety Inspections (Rental) to get more detailed information and
create timelines to remedy violations. The Rental Ordinance sections include;
      10-329 – Time to correct violation
      10-351(d) – Change in register information
      10-351(e) – Application; contents
      10-351(h) – Exemption from registration requirement
      10-352(b) – Issuances
      10-352(d) – Validity
      10-352(f) – Length of time certificate of compliance is valid
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the Rental
Ordinance changes.
Motion by Commissioner German, second by Commission Rinsema-Sybenga, to
approve the rental ordinance changes.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren
            Nays: None
MOTION PASSES

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PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT:    The City Commission meeting adjourned at 6:08 p.m.
                                 Respectfully Submitted,




                                 Ann Marie Meisch, City Clerk, MMC




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