City Commission Minutes 03-12-2019

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
           MARCH 12, 2019 @ 5:30 P.M.
   MUSKEGON CITY COMMISSION CHAMBERS
  933 TERRACE STREET, MUSKEGON, MI 49440


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, March 12, 2019, Pastor
D. W. Tolbert, New Hope Baptist 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, Byron Turnquist, Debra Warren, and Dan Rinsema-Sybenga, City
Manager Frank Peterson, City Attorney Brian Lieberman, and City Clerk Ann
Meisch.
Absent:     Commissioner Willie German, Jr.
INTRODUCTIONS/PRESENTATION:
   A. West Michigan Lake Hawks – Team Introduction and Presentation
Mr. Ron Jenkins of the West Michigan Lake Hawks thanked the City Commission
for supporting the team and updated those in attendance on the standings.
   B. Delta Days at City Hall   Dwana Thompson
Dwana Thompson, our Equal Employment Opportunity and Affirmative Action
Director introduced her sorority sisters that will have Delta Days at City Hall.
2019-19     CONSENT AGENDA:
   A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve minutes of the February 19, 2019 Joint
Meeting with the Muskegon Public School Board, minutes of the February 26,
2019 Regular Meeting, and minutes of the March 1, 2019 Goal Setting Meeting.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the minutes.
   B. Fireworks Display Permit for Heritage Landing City Clerk


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SUMMARY OF REQUEST: Night Magic is requesting approval of a fireworks
display permit for July 4, 2019, at Heritage Landing. The fire Marshall will inspect
the fireworks on the day of the event.
FINANCIAL IMPACT:         None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:          Approval contingent on inspection of the
fireworks and approval of insurance.
   C. Adopt a Resolution Approving On-Premises Tasting Room Permit at 794
      Pine Street City Clerk
SUMMARY OF REQUEST: To adopt a resolution approving a new On-Premises
Tasting Room Permit application for the Rake Beer Project, LLC at 794 Pine
Street.
FINANCIAL IMPACT:         None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            Adopt the resolution.
   D. Notice of Intent Resolution for Sanitary Sewer and Water Supply Revenue
      Bonds Finance
SUMMARY OF REQUEST: The Notice of Intent Resolution is the first step in the
bonding process. This resolution authorizes the publication of a Notice of Intent
relating to the City’s bonds issued for the purposes of paying all or part of the
cost to acquire, construct, furnish and equip improvements to the Sanitary
Sewer and Water Supply System, including sewer system and Water Supply
System, including sewer system and water supply system rehabilitation and
replacement of existing sewer and water lines, together with pump station
improvements and treatment plant improvements. The notices indicate the
City’s intent to issue Sanitary Sewer System Revenue bonds not to exceed
$8,500,000 and Water Supply System Revenue bonds not to exceed $2,000,000.
FINANCIAL IMPACT:         None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:        Approve the Notice of Intent Resolutions for
Sanitary Sewer System Revenue Bonds not to exceed $8,500,000 and Water
Supply System Revenue Bonds not to exceed $2,000,000.
   E. Amity Bridge – Resolution of Support for Bridge Funding Application and
      Commitment for Matching Funds         Department of Public Works
SUMMARY OF REQUEST: The Engineering Department would like to apply for
bridge preservation funding through the Michigan Department of
Transportation. These funds would be used to remove the Amity bridge and


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build a new roadway on fill. The bridge was originally constructed to cross a
railroad line that no longer exists.
Construction is estimated at $415,000, and the city would be required to provide
matching funds of approximately $90,000 plus engineering costs. Funding is
available starting in 2022.
The MDOT application requires a resolution of support and commitment for the
matching funds.
FINANCIAL IMPACT:        $200,000 split over fiscal year 21/22 and 22/23.
BUDGET ACTION REQUIRED:         None at this time
STAFF RECOMMENDATION:          Approve the resolution of support for the bridge
preservation fund application and commit to funding the required match and
engineering costs.
   F. Resolution of Authority to Sign Street Lighting Contracts with Consumers
      Energy       Department of Public Works
SUMMARY OF REQUEST: Approve the resolution of authority to sign contracts
with Consumers Energy to facilitate modifications to no more than 10 street lights
per contract.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approve the resolution.
   G. Authorized Representative for County Wastewater Committee Department
      of Public Works
SUMMARY OF REQUEST: Approve the resolution to designate the Public Works
Director as the authorized representative to the Muskegon Municipal
Wastewater Committee. Retain the City Manager as the alternate
representative to this committee. Authorize both to vote on behalf of the city in
all business related to this committee.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approve the resolution.
   H. Heritage Association Streetlight Easements Department of Public Works
SUMMARY OF REQUEST: Authorize the mayor and clerk to sign easements with
various property owners for city access to the lamp style streetlights in Heritage
Village that are located on private property. Since the city will be responsible for
future operation and maintenance, access to these lights is necessary.
FINANCIAL IMPACT:        None

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BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Authorize the mayor and clerk to sign the
easements.
   I. Heritage Village Streetlights    Department of Public Works
SUMMARY OF REQUEST: Accept ownership of the 26 lamp style streetlights in
Heritage Village. The city will be responsible for future operation and
maintenance. All streetlights have been upgraded, are in working condition,
and have been retrofitted with LED Lamps.
FINANCIAL IMPACT:        Cost of future operation and maintenance.
BUDGET ACTION REQUIRED:         Account for operation and maintenance in
future budgets.
STAFF RECOMMENDATION:           Accept ownership of the streetlights.
   J. Request for Authorization to Sign      Community & Neighborhood
      Services
SUMMARY OF REQUEST: Request to authorize Oneata Bailey, CNS Director, to
sign as an authorized person on behalf of the City.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:          To approve the authorizing resolution and direct
the Mayor and Clerk to sign the resolution. Oneata Bailey has been signing
agreements on behalf of the City since 2010.
Motion by Commissioner Warren, second by Vice Mayor Hood, to approve the
consent agenda as presented, except item K.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
           Warren
            Nays: None
MOTION PASSES
2019-20     ITEMS REMOVED FROM CONSENT AGENDA:
   K. Short Term Vacation Rentals – Second Reading       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

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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 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 purchasing amenities for parks.
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Staff recommends approval of the short term
vacation rentals ordinance.
Motion by Commissioner Turnquist, second by Commissioner Johnson, to
approve the short term vacation rentals ordinance.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and Rinsema-
           Sybenga
            Nays: None
MOTION PASSES
2019-21 PUBLIC HEARINGS:
   A. Public Hearing for DWRF Project Plan          Department of Public Works
SUMMARY OF REQUEST: Conduct a public hearing related to the DWRF Project
Plan that was posted for public comment on February 10, 2019 and approve the
Resolution to adopt the plan.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:
STAFF RECOMMENDATION:          Conduct public hearing and approve the
resolution.
PUBLIC HEARING COMMENCED:             No public input was received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and approve the resolution to adopt the plan.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, Rinsema-Sybenga, and
           Turnquist
            Nays: None
MOTION PASSES




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   B. Public Hearing – Request to Establish an Obsolete Property District – 1937
      Lakeshore Drive Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Ghezzi Investments, LLC has requested the establishment of an Obsolete
Property District for their property at 1937 Lakeshore Drive. The establishment of
the Obsolete Property District would allow them to apply for an Obsolete
Property Rehabilitation Exemption Certificate.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:
STAFF RECOMMENDATION:           Staff recommends approval of the creation of
the district.
PUBLIC HEARING COMMENCED:             Dick Ghezzi, 2017 Lakeshore Drive provided
input.
Motion by Commissioner Warren, second by Vice Mayor Hood, to close the
public hearing and approve the creation of the district.
ROLL VOTE: Ayes: Gawron, Hood, Warren, Rinsema-Sybenga, Turnquist, and
           Johnson
            Nays: None
MOTION PASSES
   C. Public Hearing – Request to Issue an Obsolete Property Certificate – Ghezzi
      Investments, LLC Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Ghezzi Investments, LLC has requested the issuance of an Obsolete
Property Certificate for their property located at 1937 Lakeshore Drive. Total
capital investment for this project is estimated to be $1,100,000 and will include
the addition of nine apartments and four commercial spaces. The applicant is
eligible for a 12-year abatement because of the amount of investment.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:
STAFF RECOMMENDATION:          Staff recommends approval of the Obsolete
Property Rehabilitation Exemption Certificate.
PUBLIC HEARING COMMENCED:             No public input was received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and approve the Obsolete Property Rehabilitation
Exemption Certificate.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, Turnquist, Johnson, and
           Gawron

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            Nays: None
MOTION PASSES
   D. Recommendation for Annual Renewal of Liquor Licenses            City Clerk
SUMMARY OF REQUEST: To adopt a resolution recommending non-renewal of
those liquor license establishments who are in violation of Section 50-146 and 50-
147 of the Code of Ordinances for the City of Muskegon. These establishments
have been found to be in non-compliance with the City Code of Ordinances
and renewal of their liquor licenses should not be recommended by the City
Commission. If any of these establishments come into compliance by March 12,
2019, they will be removed from this resolution.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:
STAFF RECOMMENDATION:          Adoption of the resolution.
PUBLIC HEARING COMMENCED:             No public input was received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and approve the resolution.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
           Hood
            Nays: None
MOTION PASSES
   E. Marsh Field Passport Grant Application        City Manager
SUMMARY OF REQUEST: Marsh Field is need of a number of improvements.
Muskegon Baseball has asked that the City submit a passport grant application
to address some of those needs, including: universally-accessible dugouts, play
equipment, walkway improvements, accessible picnic seating, and drinking
fountains. The total cost of the improvements are estimated at $300,000. The
City’s match would be $150,000.
This request is being filed under public hearing to allow for public
comment/input, although there is not a formal public hearing requirement in the
grant process.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:
STAFF RECOMMENDATION:          To approve the resolution authorizing the
submission of the grant application and the financial commitment of $150,000 to
match the funds received; local funds to be expensed from the Public
Improvement Fund in FY 2019-20.


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PUBLIC HEARING COMMENCED:
Tiffany Smith, Representing Muskegon Baseball - 529 Greenwood, Grand Rapids,
Presented an overview of proposed improvements that the grant would be used
for.
Mike Haueisen, 903 Turner, asked about fees through the passport.
Ken Johnson, City Commissioner, asked if we received input from the disability
community – yes, Disability Advocates of West Michigan will review.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the resolution authorizing the submission of the grant application and
the financial commitment of $150,000 to match the funds received; local funds
to be expensed from the Public Improvement Fund in FY 2019-20.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
           Warren
            Nays: None
MOTION PASSES
2019-22     NEW BUSINESS:
   A. LC Walker Arena – Lumberjacks Lease          City Manager
SUMMARY OF REQUEST: City staff is requesting approval of the lease with the
Muskegon Lumberjacks. This is a long-term lease with multiple extension
opportunities. A financial analysis sheet is attached to the lease to assist
commissioners in quickly identifying the key financial changes in the new
agreement.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:
STAFF RECOMMENDATION:          To authorize the Clerk and Mayor to sign the
lease.
Motion by Commissioner Rinsema-Sybenga, second by Johnson, to authorize
the Clerk and Mayor to sign the lease.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
           Warren
            Nays: None
MOTION PASSES
   B. Purchase Agreement – 880 First Street, 731 Yuba Street, 205 East Muskegon
      Avenue, 287 East Muskegon Avenue, and 225 Eastern Avenue City
      Manager
SUMMARY OF REQUEST: City staff is seeking permission to enter into a new

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purchase agreement with Core Development, as follows:
   1. Acquisition of the structure at 880 First Street for $150,000
   2. Acquisition of the former farmers market site for $50,000
   3. Closing on both parcels must take place on or before June 15, 2019
   4. Closing is contingent on buyers receipt of the following incentives:
         a. City-approved Commercial Rehabilitation Certificate for 10 years
         b. State-issued Community Revitalization Program incentive equal to
            20% of eligible expenses.
         c. City-approved Brownfield Reimbursement Plan to reimburse 100% of
            eligible expenses after City’s eligible expenses are fully reimbursed.
         d. Deployment of at least $1,850,000 for the development of a food
            and manufacturing incubation center on the ground floor of the
            building.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:
STAFF RECOMMENDATION:            To authorize the clerk and mayor to sign a
purchase agreement with the approved terms for city-owned properties
located at 880 First Street and 731 Yuba Street.
Motion by Commissioner Turnquist, second by Rinsema-Sybenga, to authorize
the Clerk and Mayor to sign a purchase agreement with the approved terms
form city-owned properties located at 880 First Street and 731 Yuba Street.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and Rinsema-
           Sybenga
             Nays: None
MOTION PASSES
   C. Purchase Agreement and Grant Agreement – West Shoreline Correctional
      Facility   City Manager
SUMMARY OF REQUEST: As part of the City’s effort to expand job-creation
opportunities, staff is recommending purchase of approximately 60 acres from
the State Land Bank. The site formerly housed the West Shoreline Correctional
Facility. The funds necessary to satisfy the purchase agreement will be drawn
from the Public Improvement Fund. Staff is also seeking approval of a $4 Million
enhancement grant from the State of Michigan prior to closing to offset the
purchase costs; these funds will be deposited into the Public Improvement Fund.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:

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STAFF RECOMMENDATION:        To approve the purchase agreement and grant
agreement, and authorize the City Clerk and Mayor to sign.
Motion by Vice Mayor Hood, second Warren, to approve the purchase
agreement and grant agreement, and authorize the City Clerk and Mayor to
sign.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, Rinsema-Sybenga, and
           Turnquist
           Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 7:47 p.m.


                                   Respectfully Submitted,




                                   Ann Marie Meisch, MMC – City Clerk




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