City Commission Minutes 10-23-2018

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
          OCTOBER 23, 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, October 23, 2018. Pastor
Darrin Longmire, Forest Park Covenant 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 J. Gawron, Commissioners Ken Johnson, Byron
Turnquist, Debra Warren, and Dan Rinsema-Sybenga, City Manager Franklin
Peterson, City Attorney John Schrier, and City Clerk Ann Meisch.
Absent:     Vice Mayor Eric Hood and Commissioner Willie German, Jr.
2018-77     CONSENT AGENDA:
   A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve minutes of the October 8, 2018 Worksession
and October 9, 2018 Regular Meeting Minutes.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the minutes.
   B. MDEQ Scrap Tire Grant     DPW
SUMMARY OF REQUEST: Authorize staff to partner with Michigan Technological
University to apply for a grant from MDEQ to utilize salvaged materials from
scrap tire rubber. If awarded the proposed grant would provide funding from
MDEQ to utilize scrap tire rubber materials in a 2019 capital construction project.
FINANCIAL IMPACT:        The proposed grant application will be as follows:
$150,000 Match from City of Muskegon
$78,949 Match from Michigan Tech

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$228,949 Grant from Michigan DEQ
The selected project would then receive $300,000 in funding and Michigan Tech
would receive the remainder for research and development and to provide
technical assistance during the design and construction of the project.
BUDGET ACTION REQUIRED:         None. If awarded the match money required on
behalf of the City will be taked from a yet to be budgeted FY19-20 capital
project.
STAFF RECOMMENDATION:         Authorize staff to partner with the Michigan
Technological University and pursue a scrap tire grant from the Michigan
Department of Environmental Quality.
   C. State Revolving Fund – Sewer Project Implementation    DPW
SUMMARY OF REQUEST: Authorize staff to enter into engineering service
agreements with three (3) firms to provide comprehensive engineering services
for implementation of the FY2019 State Revolving Fund (SRF) projects.
The Michigan Department of Environmental Quality (MDEQ) has issued a
preliminary announcement awarding the City of Muskegon $7.7 Million in loans
from the SRF to complete a variety of sanitary sewer projects. The loans also
provide for an estimated 75% principal forgiveness by the MDEQ.
Requests for Qualifications to provide comprehensive engineering services were
solicited with eight (8) engineering firms submitting proposals. Proposals were
scored, and the top three (3) scoring firms were contracted to provide pricing
and detailed proposals for selected portions of the FY2019 projects. These
proposals were reviewed and are supported by DPW staff.
FINANCIAL IMPACT:
Prein & Newhoff – Not to Exceed $612,600
ENG Enginerring & Surveying – Not to Exceed $204,825
Fleis & VandenBrink Engineering – Not to Exceed $203,520

BUDGET ACTION REQUIRED:        None. Contract will be funded out of sewer
budget, with full engineering costs to be repaid through the SRF loans.
STAFF RECOMMENDATION:       Authorize staff to enter into engineering service
agreements with Prein & Newhof; ENG Engineering & Surveying; and Fleis and
VandenBrink Engineering.
Motion by Commissioner Warren, second by Commissioner Johnson, to approve
the consent agenda as presented.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, and Gawron
            Nays: None
MOTION PASSES

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2018-78   PUBLIC HEARINGS:
   A. Request to Establish an Obsolete Property District – 825 W Western Ave
      Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Chart House Energy, LLC has requested the establishment of an
Obsolete Property District for their property at 825 W Western Avenue. The
establishment of the Obsolete Property District would allow them to apply for an
Obsolete Property Rehabilitation Exemption Certificate.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUITED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the creation of
the district.
PUBLIC HEARING COMMENCED:
Robert Rathsman, 200 Viridian Drive, Owner – addressed the commission
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and approve the creation of the district at 825 W.
Western Avenue.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Warren
            Nays: None
MOTION PASSES
   B. Request to Issue an Obsolete Property Certificate – Chart House Energy,
      LLC – 825 W Western Ave Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Chart House Energy, LLC has requested the issuance of an Obsolete
Property Certificate for their property located at 825 W Western Avenue. Total
capital investment for this project is estimated to be $300,000. The applicant is
eligible for a 10-year abatement because of the amount of investment.
FINANCIAL IMPACT:       If an Obsolete Property Certificate is issued, the
property taxes would be frozen at the pre-rehabilitated rete for the duration of
the certificate.
BUDGET ACTION RECOMMENDED:             None
STAFF RECOMMENDATION:          Staff recommends approval of the Obsolete
Property Rehabilitation Exemption Certificate.
PUBLIC HEARING COMMENCED:
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,

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to close the public hearing and approve the Obsolete Property Rehabilitation
Exemption Certificate.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Warren
             Nays: None
MOTION PASSES
2018-79      NEW BUSINESS:
   A. Concurrence with the Housing Board of Appeals Notice and Order to
      Demolish  Public Safety
      556 E. Dale Ave – (in-ground pool only) - REMOVED PER STAFF REQUEST -
      1984 Reynolds Street
      559 McLaughlin Avenue
SUMMARY OF REQEUST: This is to request that the City Commission concur with
the finding s 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:         None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to concur with the Housing Board of Appeals to demolish 559 McLaughlin
Avenue.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Warren, and Rinsema-Sybenga
             Nays: None
MOTION PASSES
Motion by Commissioner Warren, second by Commissioner Johnson, to concur
with the Housing Board of Appeals to demolish 1984 Reynolds Street.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Warren, and Rinsema-Sybenga
             Nays: None
MOTION PASSES



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   B. Rezoning Several Properties      Planning & Economic Development
REMOVED PER STAFF REQUEST
   C. Temporary Pension Benefit – Fire        Finance
SUMMARY OF REQUEST: As part of the pending negotiated Fire Union Contract
the City has agreed to open a window for a temporary benefit beginning
November 1, 2018 for two months to allow any member 49 years old or older
with 22 years of service the opportunity to retire early. There are 5 members who
are eligible for this benefit. This benefits the City by replacing personnel who are
at the top of the pay scale and have expensive benefits with entry level
personnel. To open the window the actuarial accrued liability of $427,225 must
be paid. If not all 5 take advantage of the opportunity, the amount paid will
lower our unfunded liability for that union.
FINANCIAL IMPACT:       In September the Commission approved a
supplemental payment to MERS for 2017-18 accrued expenses in excess of billed
in the amount of $111,258 that amount will be used towards the $427,225
payment. The total amount due will be $315,967. This amount will be taken from
the General Fund budget.
BUDGET ACTION REQUIRED:         Adjustment with the 1st Quarter Reforecast.
STAFF RECOMMENDATION:      Authorize staff to sign the temporary benefit
agreement and pay MERS $427,225 for the Fire Union benefit.
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT:       The City Commission meeting adjourned at 6:20 p.m.


                                       Respectfully Submitted,




                                       Ann Marie Meisch, MMC – City Clerk




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