City Commission Minutes 06-25-2019

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
             JUNE 25, 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, June 25, 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, Byron Turnquist, Debra Warren, Dan Rinsema-Sybenga, and Willie
German, Jr., City Manager Frank Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
INTRODUCTIONS/PRESENTATION:
   A. Pollinator Habitat Update        Department of Public Works
Leo Evans, City Engineer, provided an update on progress to date and planned
next steps relative to the urban Pollinator Habitat Conservation and Preservation
Plan.
2019-49     CONSENT AGENDA:
   A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve the minutes of the June 6, 2019 Budget
Meeting, June 10, 2019 Worksession, and the June 11, 2019 Regular Meeting.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the minutes.
   C. Peck & Sanford 2-Way Conversion        Department of Public Works
SUMMARY OF REQUEST: To award the project to J. Ranck Electric, Inc. since
they were the lowest responsible bidder with a total bid price of $205,247.10
One bid was received for this project from J. Ranck Electric, Inc. for $205,247.10

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FINANCIAL IMPACT:        $205,247.10
BUDGET ACTION REQUIRED:         None. Project was budgeted in 18-19 reforecast
and will be carried forward into the 19-20 budget.
STAFF RECOMMENDATION:            Award the contract to J. Ranck Electric, Inc.
   G. Approval of Sale of City Home at 1015 E. Forest Avenue Community &
      Neighborhood Services
SUMMARY OF REQUEST: To approve the resolution and instruct the Community
and Neighborhood Services Department to complete the sales transaction with
Kathryn Schmidt for the rehabilitated home at 1015 East Forest Avenue for a
purchase price of $115,000.
FINANCIAL IMPACT:         The proceeds from the sale will be used to continue the
rehabilitation of affordable homes through the HOME program and provide
funding for our Homebuyer’s Assistance Program.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            To approve the resolution and direct the CNS
staff to complete the sale.
Motion by Commissioner Warren, second by Commissioner Johnson, to approve
the consent agenda as presented, except item B, D, E, and F.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
            Nays: None
MOTION PASSES
2019-50   REMOVED FROM CONSENT AGENDA:
   B. Zoning Ordinance Amendment – Residential Design Criteria        Planning &
      Economic Development
SUMMARY OF REQUEST: Staff initiated request to amend section 2319 of the
zoning ordinance to reduce the minimum living space requirement for single-
family and duplex homes.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION:       The Planning Commission unanimously
recommended approval of the request at their June 13 meeting.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
to approve the zoning ordinance amendment.


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ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
             Nays: None
MOTION PASSES
   D. Sanitation Service Fee Resolution        Finance
SUMMARY OF REQUEST: To adopt the resolution to continue charging a
sanitation service fee of $1.20 per month per residential utility bill plus an
additional .80 to provide recycling. The total charge per month per residential
utility will be $2.00. This charge will cover the difference between what is
currently being collected through property taxes and what the City currently
pays for residential sanitation.
FINANCIAL IMPACT:         This fee will generate an estimated $318,000.
BUDGET ACTION REQUIRED:      None at this time. The rate was incorporated into
the FY 2019-20 budget that was recently approved by the City Commission.
STAFF RECOMMENDATION:           Adoption of the resolution.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to adopt the resolution.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren
             Nays: None
MOTION PASSES
   E. Sewer Rate Adjustment Finance
SUMMARY OF REQUEST: In 2018 a resolution with a treatment rate for our
customers that is based on a multiplier of 1.73 times the rate the county bills the
city for wastewater was adopted. The 2019/20 budget calls for the multiplier to
be raised to 1.81 to cover the costs of capital improvement needs of our aging
infrastructure over the next ten years.
FINANCIAL IMPACT:         None at this time.
BUDGET ACTION REQUIRED:        None at this time. The proposed rate change was
incorporated into the FY 2019-20 budget that was recently approved by the City
Commission.
STAFF RECOMMENDATION:           Adoption of the fee adjustment resolution.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to adopt the fee adjustment resolution.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
           Warren, and German

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            Nays: None
MOTION PASSES
   F. Park Storage Environmental Review Planning & Economic Development
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with
Envirologic to complete environmental investigation of city owned property at
1713 Seventh Street. Phase I and II environmental site assessments and a
baseline environmental assessment are needed before the city can sell the
property for development.
The requested consultant provided oversight during the removal of an
underground storage tank during demolition activities on the site and has
familiarity with the history and future needs at this location. They have submitted
a reasonable cost estimate for the work.
FINANCIAL IMPACT:       $16,865 for environmental services as follow up to
demolition costs, covered by the Public Improvement Fund.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:          Authorize staff to enter into an agreement with
Envirologic for environmental services related to the property located at 1713
Seventh Street.
Motion by Commissioner Turnquist, second by Commissioner German, to
authorize staff to enter into an agreement with Envirologic for environmental
services related to the property located at 1713 Seventh Street.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
           Rinsema-Sybenga
            Nays: None
MOTION PASSES
2019-51   PUBLIC HEARINGS:
   A. Establishment of a Commercial Redevelopment District – 292 W. Western
      Avenue      Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Pubic Act 255 of 1978, as amended,
Sweetwater Development, LLC has requested the establishment of a
Commercial Redevelopment District. The creation of the district will allow the
building owner to apply for a Commercial Facilities Exemption Certificate, which
will freeze the taxable value of the building and exempt the new real property
investment from local taxes.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Establishment of the Commercial

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Redevelopment District.
PUBLIC HEARING COMMENCED:
Diane Foster, 153 Ottawa, made comments.
Mike Jenkins, 487 Washington, made comments.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
close the public hearing and establish the Commercial Redevelopment District.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist.
            Nays: None
MOTION PASSES
   B. Issuance of a Commercial Facilities Exemption Certificate – Sweetwater
      Development, LLC   Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 255 of 1978, as amended,
Sweetwater Development, LLC has requested the issuance of a Commercial
Facilities Exemption Certificate for their project at 292 W. Western Avenue. The
certificate provides a 50% reduction in the number of mills levied as ad valorem
taxes, excluding the State Education Tax, for the commercial portion of the
development. The company will be investing $4,154,539 in the commercial
space and will create up to 30 jobs, which qualifies them for an abatement of
12 years.
FINANCIAL IMPACT:          The certificate provides a 50% reduction in the number
of mills levied as ad valorem taxes, excluding the State Education Tax.
BUDGET ACTION REQUIRED:        None.
STAFF RECOMMENDATION:          Issuance of the Commercial Facilities Exemption
Certificate.
PUBLIC HEARING COMMENCED:              No public comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and issue the Commercial Facilities Exemption
Certificate.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson
            Nays: None
MOTION PASSES
   C. Request to Create a new Neighborhood Enterprise Zone District at 292 W
      Western Ave Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 147 of the Michigan Public Acts

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of 1992, Sweetwater Development, LLC has requested to create a new
Neighborhood Enterprise Zone (NEZ) district for the parcel at 292 W Western
Avenue for a new mixed-use building.
FINANCIAL IMPACT:          For those properties that are approved for a NEZ
Certificate, taxation will be levied using half of the State average of millages of
local entities.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           To hold the public hearing.
PUBLIC HEARING COMMENCED:               No public comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner German,
to close the public hearing.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
             Nays: None
MOTION PASSES
   D. Transmittal of 2019-20 Proposed Budget         City Manager
SUMMARY OF REQUEST: At this time staff is transmitting to the City Commission
the proposed budget for fiscal year 2019-20 which starts July 1, 2019. Both
hardcopy and electronic versions of the budget have been distributed to
Commissioners. Additionally, the budget is available for public inspection on the
City’s website and at the City Clerk’s office.
The proposed budget was reviewed in detail with staff at the June 6th work
session. A public hearing on the budget will be held at the regular Commission
meeting on June 25th. City ordinance requires that the budget be adopted by
the Commission on or before the second Commission meeting in June.
FINANCIAL IMPACT:         The budget is the City’s financial plan for the coming
fiscal year.
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           Approval of the proposed budget for fiscal year
2019-20.
      https://www.muskegon-mi.gov/2019-20-budget-and-quarterly-reforecast/
PUBLIC HEARING COMMENCED:               No public comments were received.
Motion by Commissioner Warren, second by Vice Mayor Hood, to close the
public hearing and adopt the proposed budget for fiscal year 2019-20.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood

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            Nays: None
MOTION PASSES
2019-52     NEW BUSINESS:
   A. Concurrence with the Housing Board of Appeals Notice and Order to
      Demolish  Public Safety
      1619 Superior
      1285 Eighth Street
      769 Catawba Avenue
SUMMARY OF REQUEST: This is a request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within 30 days. 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 a contract 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:          General Funds
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to concur with the Housing Board of Appeals decision to demolish 1619 Superior
and 769 Catawba.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren
            Nays: None
MOTION PASSES
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to refer 1285 8th Street back to the Housing Board of Appeals.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
           Warren, and German
            Nays: None
MOTION PASSES
   B. Approval of Midtown Square 2 Construction Contracts    Planning &
      Economic Development


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SUMMARY OF REQUEST: Staff is seeking approval of the seven contracts totaling
$2,999,230 for the construction of ten attached townhomes and six detached
single family homes.
FINANCIAL IMPACT:        $2,999,230 – funded via a loan from the Michigan State
Land Bank.
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Approval of and authorization to sign the
construction contracts.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve and authorize signing of the construction contracts.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, German, and Rinsema-
           Sybenga
            Nays: Warren
MOTION PASSES
   C. BoomTown Market Economic Development Revolving Loan Fund
      Application Planning & Economic Development
SUMMARY OF REQUEST: BoomTown market is seeking a loan from the City’s
Economic Revolving Loan Fund for $55,000 in order to complete their necessary
capital accrual to open a downtown grocery store in the first floor of Lakeview
Lofts on Western Avenue.
FINANCIAL IMPACT:       $55,000 to be repaid at prime interest rate at time of
closing +2% over a 5 year term.
BUDGET ACTION REQUIRED:        None at this time.
STAFF RECOMMENDATION:       To authorize the loan application and release
necessary funds to BoomTown Market as presented.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to authorize the
loan application and release necessary funds to BoomTown Market as
presented.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
            Nays: None
MOTION PASSES
   D. Ordinance – Operation of Electric Scooters & Electric Bikes    Public
      Safety
SUMMARY OF REQUEST: The Director of Public Safety requests the City
Commission approve the proposed Ordinance as it pertains to the use of

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Electric Scooters and Electric Bikes within the City. This ordinance defines
operator age requirements, allowed locations for operation and operation
restrictions in reference to State and City motor vehicle requirements.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:            To approve the proposed ordinance for use of
Electric Scooters & Electric Bikes in the City.
Motion by Commissioner Warren, second by Vice Mayor Hood, to approve the
proposed ordinance for use of Electric Scooters and Electric Bikes in the City.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson
            Nays: None
MOTION PASSES
   E. Convention Center Resolution and Agreements       City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the Bonding Resolution and
two agreements with Muskegon County. Approval of these three items
simultaneously is important, as all three require approval to move the project
forward. The amendment to the development agreement will better clarify the
responsibilities and commitments of all three parties following our decision to
adjust the size of the facility and remove prevailing wage requirements. The
Accommodation Tax Allocation Agreement outlines the County’s commitment
to use Accommodation Tax receipts to reimburse the city its costs associated
with the convention center debt. The Bonding Resolution is required 45 days
prior to the issuance of capital improvement bonds.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED:         None at this time.
STAFF RECOMMENDATION:          To approve the Amendment to the Development
Agreement, the Accommodation Tax Allocation Agreement, and the Bonding
Resolution authorizing issuance of 2019 Capital Improvement Bonds.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the Amendment to the Development Agreement and
Accommodations Tax Allocation Agreement.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
            Nays: None
MOTION PASSES
Motion by Commissioner Johnson, second by Commissioner German, to

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approve the Bonding Resolution authorizing Issuance of 2019 Capital
Improvement Bonds.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Gawron, and
           Hood
            Nays: Johnson
MOTION PASSES
   F. Request for Final Planned Unit Development (PUD) Approval Including
      Street Vacations – The Docks Planning & Economic Development
SUMMARY OF REQUEST: Request for final PUD approval for The Docks
development at 3400, 3460, 3474 Wilcox Avenue, 1875 Waterworks Road, and
1490 Edgewater Street. This request also includes the request to vacate
Edgewater Street, north of Lot 80 and the following unimproved streets within
the Edgewater plat, those being Arlington Avenue, west of lot 24; Windward
Drive, west of Lot 46, Brighton Avenue, west of Lot 66; Manhattan Avenue, west
of the existing cul-de-sac portion of Edgewater Street; and Edgewater Street
north of the existing cul-de-sac.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:          Staff recommends approval of the PUD with the
condition to add more street trees and to work with the staff arborist on marking
trees to remain.
COMMITTEE RECOMMENDATION:         The Planning Commission approved a
motion to recommend approval of the PUD with conditions by an 8-1 vote.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to approve the PUD with the condition to add more street trees and to work with
staff arborist on marking trees to remain.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
           Warren
            Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.


                                         Respectfully Submitted,




                                         Ann Marie Meisch, MMC – City Clerk

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