City Commission Minutes 02-12-2019

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
          FEBRUARY 12, 2019 @ 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, February 12, 2019,
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, Debra Warren, Willie German, Jr., and Dan
Rinsema-Sybenga, City Manager Frank Peterson, City Attorney John Schrier, and
City Clerk Ann Meisch.
2019-10        CONSENT AGENDA:
   A. Approval of Minutes          City Clerk
SUMMARY OF REQUEST: To approve the minutes of the January 22, 2019 Regular
Meeting.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:            None
STAFF RECOMMENDATION:              Approval of the minutes.
   B. Medicaid CHIP Community Development Lead Hazard Control Program –
      2019 Community & Neighborhood Services
SUMMARY OF REQUEST: Community and Neighborhood Services Department
has budget provisions to hire Abatement Contractors and a Lead Abatement
Contractor team to monitor the lead abatement projects for our Lead Safe
Muskegon Program; funded by the Michigan Department of Health and Human
Services (MDHHS). A list of Lead Abatement Contractors have expressed an
interest in working with the city to serve an expected 25 households.
Below are the proposed Abatement Contractors enlisted for abatement work:
Tony Beattie       Beattie Bros.
Curtis Holden      Gray Space Construction


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Viv Jaunais        Great Lakes Builders
Francena DePung Nassau Construction
Chuck McCloud      TK Construction
Joe Fehler         Midwest Builders
Joe Ferrier        4 Star Builders
Vicki Luthy        External Consultant
Catherine Phelps AAA Lead Inspections
FINANCIAL IMPACT:         $880,005.00
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:         Support the hiring of the proposed Abatement
Contractors for the Lead Safe Muskegon Program.
   C. Water Main Repair         Department of Public Works
SUMMARY OF REQUEST: Authorize Staff to enter into an agreement with
Jackson-Merkey Contractors, the lowest responsible bidder, to perform water
main repairs in the Roberts Street ROW behind Steel School in the Ryerson Creek
gully.
Due to the location and depth of the water main along with a high-water table,
our in-house work force is unable to perform the repair.
Two Contractors submitted bids for this project as follows:
Jackson-Merkey Contractors - $30,150
McCormick Sand - $49,500.
FINANCIAL IMPACT:         $30,150.00
BUDGET ACTION REQUIRED:         None at this time. Funds will come from the water
fund.
STAFF RECOMMENDATION:         To authorize staff to enter into an agreement for
water main repairs with Jackson-Merkey Contractors.
   D. 2019 User Fee Addition – Commercial Launch Ramp Permit         Department
      of Public Works
SUMMARY OF REQUEST: Staff is requesting permission to add to the User Fee
Schedule a Commercial Launch Ramp Sticker and fee of $250.00 per permit
plus $50.00 for each additional permit, per calendar year.
FINANCIAL IMPACT:         Revenue generated from fee.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the request.

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   E. Municipal Vehicle Purchase       DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) Trackless Municipal Vehicle from Bell Equipment Company
from the Mi-Deals State Contract. Cost for this item is $125,782.85 coming from
the Equipment Division Fund.
FINANCIAL IMPACT:        $125,782.85
BUDGET ACTION REQUIRED:        This purchase will be added into the Equipment
Budget and reflected in the third quarter re-forecast.
STAFF RECOMMENDATION:          Authorize staff to purchase one (1) Trackless
Municipal Vehicle from Bell Equipment Company.
   F. Water Service Line Replacements         Department of Public Works
SUMMARY OF REQUEST: To award contract (W-91838.1) for replacement of
water service lines at various locations within the City of Muskegon.
Two contractors submitted bids for this project as follows:
Goyette Mechanical – 21 Each
McCormick Sand – 15 Each
Bids were selected based on a fixed budget and variable scope. Bidders were
instructed to bid based on how much work they could complete within a fixed
budget with the winning bid going to the company that could complete the
most work.
FINANCIAL IMPACT:        $100,000.00
BUDGET ACTION REQUIRED:         None. Funded through grant revenue from
MDEQ.
STAFF RECOMMENDATION:           Award the project to the low bidder, Goyette
Mechanical.
   H. Muskegon Fire Department Equipment Request (Turnout Gear)
      Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the amount of $34,051.42 for thirteen (13) sets of turnout
gear for full-time firefighters which have been in-service since January 2019. The
safety equipment is personalized to each firefighter and will be issued when
received. The cost of the turnout gear per set is $2,012.95 through Phoenix Safety
Outfitters.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         Equipment to impact the Fire General Fund.
STAFF RECOMMENDATION:           Staff recommends approval of this purchase

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request.
   I. Short Term Vacation Rentals       Public Safety
REMOVED
   J. Approval of Several Neighborhood Enterprise Zone Certificates
      Planning & Economic Development
SUMMARY OF REQUEST: Applications for Neighborhood Enterprise Zone (NEZ)
certificates have been received for homes at the Terrace Point Landing
development. The applications are for the following addresses: 302, 304, 306,
308, 310, 312, 320, 330, 332, 338, 340, 351, 353, 654, 672, 674, 679, 681, 688, and
690 Terrace Point. All applicants have met local and state requirements for the
issuance of the NEZ certificates.
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 certificates.
   K. Rezoning of 1021 Jefferson Street        Planning & Economic Development
SUMMARY OF REQUEST: Staff-initiated request to rezone the property at 1021
Jefferson Street from Form Based Code, Urban Residential to Form Based Code,
Neighborhood Core.
FINANCIAL IMPACT:         None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION:        The Planning Commission unanimously (6-0)
recommended approval of the rezoning, with three members absent.
   L. Restrictive Covenant for 350 Shoreline Drive         Planning Department
SUMMARY OF REQUEST: Authorize the mayor and clerk to sign the restrictive
covenant for nonresidential remedial action for the city owned property
located at 350 Shoreline Drive. Various contaminants remain within the soil and
groundwater on site, and this restrictive covenant is necessary to document
those hazardous substances and direct any future land owners with regard to
preventing unacceptable exposure. DTE will continue to operate a groundwater
extraction system to treat groundwater on site.
FINANCIAL IMPACT:         None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            Authorize the mayor and clerk to sign the
restrictive covenant.

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   M. Sale of City Owned Property to Damfino Development, LLC          City
      Manager
REMOVED
   N. Approval of Contract for Critical Dune Enforcement         Planning &
      Economic Development
SUMMARY OF REQUEST: The City approved its local Critical Dune ordinance on
December 12, 2017. Staff released a Request for Qualifications to enforce the
ordinance in 2018 and Prism was the only applicant. Staff is requesting approval
of the contract and fee schedule to allow Prism to enforce the ordinance.
FINANCIAL IMPACT:         Staff anticipates a cost savings for the City’s annual
permits and also for private home owners who apply for permits.
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            Approval of the contract and fee schedule.
   Q. Community Relations Committee Appointment Recommendations
      City Clerk
SUMMARY OF REQUEST: To accept the recommendation to appoint Rozelia
Patino to the Citizen’s Police Review Board.
FINANCIAL IMPACT:         None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:      To concur with the recommendation of the
Community Relations Committee and approve the appointment.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the consent agenda as presented, except items G, O, and P.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
           Rinsema-Sybenga
             Nays: None
MOTION PASSES
2019-11      ITEMS REMOVED FROM CONSENT:
   G. Sanford/Peck Traffic Signal Design       Engineering
SUMMARY OF REQUEST: Authorize staff to enter into an engineering services
agreement with Wade Trim, Inc. to complete engineering for traffic signal
upgrades along Peck and Sanford Streets. The upgrades would include
modifications to the existing signals that would allow for the eventual conversion
of Peck and Sanford Street to 2-way traffic.
Requests for Proposals were solicited for this contract with three firms submitting
proposals. Proposals were reviewed by staff and the Wade Trim proposal is

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recommended.
Wade Trim - $21,000
Progressive AE - $22,000
Prein & Newhof - $104,000
FINANCIAL IMPACT:          $21,000.00
BUDGET ACTION REQUIRED:          None, this will be addressed during a future
reforecasting.
STAFF RECOMMENDATION:       Authorize staff to enter into an engineering
services agreement with Wade Trim.
Motion by Commissioner Warren, second by Commission Johnson, to authorize
staff to enter into an engineering services agreement with Wade Trim.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
            Nays: None
MOTION PASSES
   O. Organizational Changes City Manager
SUMMARY OF REQUEST: Approve changes to the city’s organization, specifically
in the workload for the division heads and operations at the LC Walker Arena.
Modify the Municipal Services Division to include Planning, Economic
Development and Community and Neighborhood Services. Establish positions
for an Economic Development Director, and a Strategic Initiatives Director.
Re-establish the Public Works Director overseeing the Engineering Department,
Water Filtration Plant, Utility Department and Department of Public Works and
appoint Leo Evans as the division head.
Establish positions for operations at the LC Walker Arena including an Arena
Maintenance Worker, and Arena Finance manager, and an Arena Box Office
Manager.
FINANCIAL IMPACT:          To be determined based on salary and benefit
packages.
BUDGET ACTION REQUIRED:          Include salary and benefits in the next budget
reforecast.
STAFF RECOMMENDATION:            Approve changes to the city’s organization.
Motion by Commissioner Turnquist, second by Vice Mayor Hood, to approve
changes to the city’s organization.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson

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            Nays: None
MOTION PASSES
   P. Sale of City Owned Property     Planning & Economic Development
SUMMARY OF REQUEST: Staff-initiated request to sell the bike path parcel that
runs through the proposed Hartshorn Village development. The bike path will be
relocated just to the north.
FINANCIAL IMPACT:         The sale is necessary to make the development work,
which will lead to increased residential property taxes.
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Approval of the estate agreement.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the estate agreement.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
            Nays: None
MOTION PASSES
2019-12     NEW BUSINESS:
   A. Sale of City Owned Lot at 1021 Jefferson Street   Planning & Economic
      Development
SUMMARY OF REQUEST: Staff initiated request to sell the lot at 1021 Jefferson
Street. After presenting the development proposal to the City Commission in
November of 2018, staff executed a Letter of Intent to sell the property to
General Capital Acquisitions, LLC for $455,000.
FINANCIAL IMPACT:        Funds received from the sale will go into the General
Fund.
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Approval of the “Offer to Purchase.”
Motion by Commissioner Warren, second by Commissioner German, to approve
the offer to purchase.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson, and
           Hood
            Nays: None
MOTION PASSES
   B. PILOT-Gencap 1021 Jefferson Limited Dividend Housing Association, LLC
      Planning & Economic Development

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SUMMARY OF REQUEST: Gencap 1021 Jefferson Limited Dividend Housing
Association, LLC is proposing an affordable housing development at 1021
Jefferson Street and is requesting a Payment in Lieu of Taxes (PILOT) for the
project. The development will include 73 residential units and 2,300 square feet
of commercial space. There will be 55 one-bedroom units and 18 two-bedroom
units. Ten units will be at 30% AMI, nine units will be at 40% AMI, 11 units will be
low-income disability units, 14 units will be at 60% AMI and 29 units will be at 80%
AMI. A service charge of 4% will be imposed, as well as a municipal services fee
of 2%.
FINANCIAL IMPACT:         Although the PILOT for the project will be less than the
taxes captured for a similar market-rate project, the situation with this particular
property is that the contribution towards the City will be greater to the City with
the development under a PILOT than it is as a vacant lot. In addition, taxes
would apply to the commercial square footage within the building.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:         To approve the Contract for Housing Exemption
and Professional Services Agreement.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the Contract for Housing Exemption and Professional Services Agreement.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren
             Nays: None
MOTION PASSES
2019-13      ANY OTHER BUSINESS:
Motion by Commissioner Johnson, second by Vice Mayor Hood, to include the
property at 185 W. Laketon Avenue into the Medical Marijuana Overlay District.
ROLL VOTE: Ayes: Rinsema-Sybenga, Johnson, Hood, and Warren
             Nays: Turnquist, Gawron, and German
MOTION PASSES
SECOND READING REQUIRED
PUBLIC PARTICIPATION: Comments were received from the public.
ADJOURNMENT: The City Commission meeting adjourned at 6:50 p.m.
                                              Respectfully Submitted,




                                              Ann Marie Meisch, City Clerk - MMC

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