City Commission Minutes 02-26-2019

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
          FEBRUARY 26, 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 26, 2019,
Reverend 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, Vice Mayor Eric Hood, Commissioners
Ken Johnson (arrived at 5:35 p.m.), Byron Turnquist, Debra Warren, and Dan
Rinsema-Sybenga, City Manager Frank Peterson, City Attorney John Schrier, and
City Clerk Ann Meisch.
Absent:     Commissioner Willie German, Jr.
2019-14     CONSENT AGENDA:
   A. Approval of Minutes        City Clerk
SUMMARY OF REQUEST: To approve the minutes of the February 11, 2019
Worksession meeting and February 12, 2019 Regular meeting.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Approval of the minutes.
   B. Special Event Liquor License – Farmers Market for Blues & BBQ Fundraiser
      City Clerk
SUMMARY OF REQUEST: The City Clerk’s Office is organizing a Taste of
Muskegon Fundraiser to be held on Saturday, March 23, 2019 and is seeking City
Commission approval to apply for a license for beer, wine, and spirit sales for this
event. The Farmer’s Market does have a liquor license but the licensed area

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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 application
for the March 23, 2019 Blues & BBQ, Taste of Muskegon Fundraiser event.
   D. Authorized Representative for Drinking Water Grant      Department of
      Public Works
SUMMARY OF REQUEST: Approve the resolution to designate the Public Works
Director as authorized representative for the Pilot Drinking Water Community
Water Supply Grant Program in all transactions with the MDEQ related to this
grant.
FINANCIAL IMPACT:       None
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Approve the resolution.
   E. Street Administrator Resolution Department of Public Works
SUMMARY OF REQUEST: Approve the resolution to designate the Public Works
Director as the street administrator in all transactions with the Michigan
Department of Transportation.
FINANCIAL IMPACT:       None
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Approve the resolution.
   F. Authorized Representative for State Revolving Fund      Department of
      Public Works
SUMMARY OF REQUEST: Approve the resolution to designate the Public Works
Director as the authorized representative for the State Revolving Fund Loan
Program in all transactions with the MDEQ related to this grant.
FINANCIAL IMPACT:       None
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Approve the resolution.
   G. City of Muskegon/MDOT Project Agreement – Lakeshore Drive
      Department of Public Works
SUMMARY OF REQUEST: Approve the contract with MDOT for Lakeshore Drive
construction between McCracken and Laketon 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

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funds of $800,000. The estimated total construction cost is $5,700,000 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.
   H. Drinking Water Revolving Fund (DWRF) Project Plan – Amendment
      Department of Public Works
SUMMARY OF REQUEST: Authorize staff to sign an amendment to the
engineering services agreement with Prein & Newhof Engineering to develop a
Drinking Water Revolving Fund Project Plan. The value of the amendment is
estimated at $10,000. The original contract was for a not to exceed amount of
$15,500.
The original engineering services agreement with Prein & Newhof to develop a
DWRF Project Plan was approved in December to target fiscal year 2020 dollars,
in January we were made aware of left over fiscal year 2019 DWRF funds that
could be partnered with already planned and underway SRF projects.
The amendment to the original contract would cover the increased costs
necessary to pursue the additional fiscal year 2019 funding and still allow for the
development of the full plan for fiscal year 2020.
FINANCIAL IMPACT:        $10,000
BUDGET ACTION REQUIRED:         None, this will be addressed during a future
reforecasting.
STAFF RECOMMENDATION:       Authorize staff to enter into the amended
engineering services agreement with Prein & Newhof.
   I. W-91838.2 Water Service Line Replacements           Department of Public
      Works
SUMMARY OF REQUEST: To award contract (W-91838.2) for replacement of
water service lines at various locations within the City of Muskegon.
Two Contractors submitted bids for this project as follows:
McCormick Sand…………31 Each
Goyette Mechanical…….23 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:        $150,000

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BUDGET ACTION REQUIRED:           None. Funded through grant revenue from
MDEQ.
STAFF RECOMMENDATION:             Award the project to the low bidder, McCormick
Sand.
   J. W-91838.3 Water Service Line Replacements             Department of Public
      Works
SUMMARY OF REQUEST: To award contract (W-91838.3) for replacement of
water service lines at various locations within the City of Muskegon.
Two Contractors submitted bids for this project as follows:
McCormick Sand…………30 Each
Goyette Mechanical…….27 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:         $150,000
BUDGET ACTION REQUIRED:           None. Funded through grant revenue from
MDEQ.
STAFF RECOMMENDATION:             Award the project to the low bidder, McCormick
Sand.
   K. Legislative Consulting      City Manager
SUMMARY OF REQUEST: The City has had the same legislative consultant on
retainer for many years. Earlier this year, our consultant retired. Staff is requesting
that Main Street Legislative Consulting be engaged to provide this service to the
city at a cost of $2,000 per month.
FINANCIAL IMPACT:         $24,000
BUDGET ACTION REQUIRED:           None at this time.
STAFF RECOMMENDATION:          To authorize the City Manager to accept a
proposal from Main Street Legislative Consulting.
   M. LC Walker Arena – Ironmen Lease          City Manager
SUMMARY OF REQUEST: City staff is requesting approval of the lease to allow
the West Michigan Ironmen to play indoor football at the LC Walker Arena in
2019. This is a one year lease.
FINANCIAL IMPACT:         None.
BUDGET ACTION REQUIRED:           None.


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STAFF RECOMMENDATION:         To authorize the Clerk and Mayor to sign the
lease with Muskegon Football.
   N. LC Walker Arena Performance Agreement City Manager
SUMMARY OF REQUEST: The City is working to host a concert at the LC Walker
Arena. We are seeking approval of the performance agreement.
FINANCIAL IMPACT:        $14,000
BUDGET ACTION REQUIRED:         None at this time.
STAFF RECOMMENDATION:           To authorize the City Manager to enter into the
performance agreement with Pegboard Nerds to perform at the LC Walker
Arena on Friday, April 5, 2019.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the consent agenda as presented, except items C and L.
ROLL VOTE: Ayes: Gawron, Hood, Warren, Rinsema-Sybenga, Turnquist, and
           Johnson
            Nays: None
MOTION PASSES
2019-15       ITEMS REMOVED FROM CONSENT:
   C. Amendment to the Medical Marihuana Facilities Licensing Overlay District
      – 2nd Reading   Planning & Economic Development
SUMMARY OF REQUEST: The property owner at 185 W. Laketon Avenue is
requesting to amend the Medical Marihuana Licensing Facilities Act (MMFLA)
Overly District to include their property within the district.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff does not recommend approval of the
amendment.
COMMITTEE RECOMMENDATION:          At the January 10, Planning Commission
meeting, a motion was made to approve the amendment as presented. The
Planning Commission voted 6-2 against the motion.
The item was reprised at the February 12, 2019 City Commission meeting with a
motion to include the property at 185 W. Laketon into the Medical Marijuana
Overlay District. The motion passed with four commissioners voting YES and three
commissioners voting NO.
The motion is to amend the zoning ordinance to include 185 W. Laketon Avenue
in the Medical Marihuana Facilities Licensing Act Overlay District.
Motion by Commissioner Turnquist, second by Commissioner Johnson, to amend

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the zoning ordinance to include 185 W. Laketon Avenue in the Medical
Marihuana Facilities Licensing Act Overlay District.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, and Johnson
             Nays: Turnquist and Gawron
MOTION PASSES
   L. Fertilizer   DPW/Parks & Cemetery
SUMMARY OF REQUEST: The Park Supervisor requests that the Commission
authorize the amount of $18,612.00 for two applications of fertilizer for the parks
and cemeteries from Harrell’s, the only available supplier. Bids were submitted to
two other companies: Siteone and Advance Turf Solutions. Neither of them was
able to supply the product.
FINANCIAL IMPACT:         $18,612.00
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            Approval of the request.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to approve the request.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
           Hood
             Nays: None
MOTION PASSES
2019-16      NEW BUSINESS:
   A. Approval of a Neighborhood Enterprise Zone Certificate – 351 W Western
      Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from 351 Phase II, LLC for the construction of 15
market-rate apartments as part of Phase II of their mixed-use development
project. The estimated project cost is $210,000 per unit. The property was
approved as a Neighborhood Enterprise Zone District on May 9, 2017. The
applicant has met local and state requirements for the issuance of the NEZ
certificate. They have requested the maximum 15 years for the exemption.
FINANCIAL IMPACT:         One-half of the previous year’s state average principal
millage rate will be applied to the value of the facility for a duration of 15 years,
with a three-year phase out (they will receive 75% of the abatement in year 13,
50% in year 14 and 25% in year 15).
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Approval of the NEZ certificate for 15 years.

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Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve NEZ Certificate for 15 years.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
           Warren
            Nays: None
MOTION PASSES
   B. Request for Final Planned Unit Development (PUD) Approval – Hartshorn
      Village      Planning & Economic Development
SUMMARY OF REQUEST: Request for final PUD approval for a mixed-use
development at 920,1000, 1010, 1050 and 1060 W. Western Avenue. The
development will include 55 single family homes, a clubhouse, and
improvements to the Hartshorn Marina and Fricano’s Place.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:           Staff recommends approval of the PUD with
some minor conditions listed in the staff report.
COMMITTEE RECOMMENDATION:            The Planning Commission approved a
motion to recommend approval of the PUD, with the staff recommended
conditions by a 7-0 vote, with two members absent.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the PUD with minor conditions listed in the staff report.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
           Warren
            Nays: None
MOTION PASSES
   C. Land Swap – Damfino Development City Manager
SUMMARY OF REQUEST: Staff previously proposed selling approximately .63
acres of property to Damfino Development after receiving a purchase offer
from the group. Commissioners recommended that staff pursue a land swap for
a similarly-sized parcel as an alternative. Staff is recommending that the revised
offer be considered for approval. The revised offer provides the City of
Muskegon with .63 acres of dune land along Lakeshore Drive – this property is
adjacent to the city owned parcel located at 2275 Beach Street. In addition to
the .63 acres of land, Damfino Development is proposing to contribute $25,000
to the City’s upcoming 150th Anniversary Celebration.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:          None

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STAFF RECOMMENDATION:       To accept the proposal from Damfino
Development and authorize staff to complete the transaction.
Motion by Vice Mayor Hood, second by Commissioner Turnquist, to accept the
proposal from Damfino Development and authorize staff to complete the
transaction contingent upon adding additional access through an easement,
giving access to charter park, and the PUD has to be approved.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
           Warren
            Nays: None
MOTION PASSES
   D. Short Term Vacation Rentals       Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission consider approving a stand-alone ordinance “Short Term Vacation
Rentals” regulation. The city has experienced an increase in short term vacation
rentals over the past couple of years. These specialty rental offerings are not
regulated in our current “Housing Rental” ordinance. The ordinance will address
applying and receiving a short term rental certificate and a safety inspection of
the unit(s). Certificate holders will be responsible for insuring tenants are aware
and complies with relevant city ordinances, with a focus on number of
occupants, recreational fires, parking, fireworks, noise, and trash to name a few
noted problem areas that staff has experienced in an attempt to regulate short
term rentals. The requested ordinance will improve neighborhood relations
where short term rentals are now located, create a safer and peaceful
environment for short term tenants and residents. The staff recommends the
annual fee of the Short Term Vacation Rentals to be $250.00 annually.
FINANCIAL IMPACT:       Revenue generated will be put into a separate
account to be used for expenses and purchase amenities for parks.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           Staff recommends approval of the short term
vacation rentals ordinance.
Motion by Commissioner Warren, second by Commissioner Turnquist, to approve
the short term vacation rentals ordinance.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, Rinsema-Sybenga, and
           Turnquist
            Nays: None
MOTION PASSES
SECOND READING REQUIRED


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   E. Concurrence with the Housing Board of Appeals Notice and Order to
      Demolish  Public Safety
      1874 Jarman
REMOVED PER STAFF REQUEST
ANY OTHER BUSINESS:         Commissioner Warren reminded everyone of the
Resident Appreciation Event coming up on March, 11, 2019 and asked for an
update on the parking ordinance amendments for winter which the Chief
provided. Commissioner Johnson has requested the City NOT move forward with
his previous request of moving forward with special assessment proceedings for
burying utility lines on Lakeshore Drive and asked that letters be sent to all
interested parties.
PUBLIC PARTICIPATION: Comments were received from the public.
ADJOURNMENT: The City Commission meeting adjourned at 7:57 p.m.


                                           Respectfully Submitted,




                                           Ann Marie Meisch, MMC - City Clerk




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