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CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 24, 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, September 24, 2019,
Pastor Leroy Lockhart, New Birth Ministries, 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
Byron Turnquist, Ken Johnson, Debra Warren, Dan Rinsema-Sybenga, and Willie
German, Jr., City Manager Frank Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
PUBLIC COMMENT ON AGENDA ITEMS: Public comments were received.
2019-75 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the September 9, 2019
Worksession meeting and the September 10, 2019 Regular meeting.
STAFF RECOMMENDATION: Approval of the minutes.
B. Financial Policy Update City Treasurer
SUMMARY OF REQUEST: To update the Poverty Exemption Income Guidelines
used to determine poverty tax exemptions.
In recent years, the State of Michigan has undertaken significant Property
Assessing Reform in an effort to ensure high quality assessments for taxpayers
and local units. One of the many reforms is a mandatory AMAR (Audit of
Minimum Assessing Requirements) to be conducted every five years in each
local unit. The local units in the County of Muskegon are scheduled to receive
their AMAR in 2020.
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As part of our efforts to ensure we are complying with all State reqirements for
the AMAR, we reviewed our Poverty Exemption Policy with our assessor of
record, Donna VanderVries, and determined changes to the policy were
necessary. On page 25 of the attached Financial Policies, in the Poverty
Exemption Income Guidelines, the requirements of items 7) and 8) do not
comply with state regulation and must be removed from the policy. Also, for
item 2), we cannot require the taxpayer to provide the property tax credit
regurns. The State Tax Tribunal has ruled that we cannot go above what the
state statute dictates, and each of these requirements are considered to be
beyond the limits of the statute.
On the advice of Muskegon County Equalization Director Donna VanderVries,
we are requesting that you update item 2) and eliminate items 7) and 8) from
the current Poverty Exemption Income Guidelines in the City’s Financial Policies.
STAFF RECOMMENDATION: To approve the updated Poverty Exemption
Income Guidelines in the City of Muskegon’s Financial Policies as presented.
C. Equipment Replacement DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one Caterpillar Backhoe coming from Michigan CAT, the Mi Deal
State Contract holder. This machine will replace one we are trading in.
Amount requested is $109,290.05 less trade in of $20,00.00 for our machine. Final
price of $89,290.05.
STAFF RECOMMENDATION: Authorize staff to purchase on Caterpillar
backhoe for a final price of $89,290.05.
E. Thermal Imaging Cameras (TIC) Public Safety/Fire Department
SUMMARY OF REQUEST: Seeking approval to purchase two (2) Avon Thermal
Imaging Cameras (TIC) at a cost of $10,060.00 and six (6) Seek units at a cost of
$3,957.50. The total cost of $13,748.80 is below the approved 2019/2020
budgeted amount of $14,096.00. Thermal Imaging Cameras are used to locate
victims and hidden fires during fire-fighting efforts. The two (2) Avon TIC units will
be placed on Engines 23 & 25. The six (6) personal size TIC units are to be worn
by the firefighters.
STAFF RECOMMENDATION: To approve the purchase of eight (8) Thermal
Imaging Cameras for Fire Department use in detection and rescue efforts for a
total cost of $13,748.80.
F. Melching – Change Order #005 Public Work
SUMMARY OF REQUEST: Melching Demolition has provided a proposal to crush
all of the existing concrete and asphalt and leave it on site at the West Shoreline
Correctional Facility. The crushed concrete and asphalt would be used by city
crews performing maintenance work and for city funded public projects with
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excess material to be sold.
Change Order #005 represents an approximately $100,000 increase in the
contract value with Melching. For this price Melcing will crush all of the existing
concrete and asphalt on site. Concrete will be crused into popular gradations
that can be used for city project, or sold to private developments. Asphalt will
be crushed into millings for use on city projects, and/or to be sold for private
developments. Payment for the contract increase will be made from the grant
funds allocated towards this sie. Any proceeds from sale of excess material are
proposed to be deposited into the Local Street Fund to potentially be used to
fund a future project.
STAFF RECOMMENDATION: Authorize staff to sign Change Order #005 to the
demolition contract with Melching Demolition in the amount of $101,250.
G. Water Filtration Plant – CE Contract Public Works
SUMMARY OF REQUEST: Consumers Energy has provided a contract relative to
the water filtration plant that allows them to suspend electrical service to the
water filtration plant under certain peak conditions at which time the water
filtration plant will operate under generator power.
Consumers Energy retains the right to suspend electrical service to the water
filtration plant under certain peak conditions and provided proper notice to the
plant. These occurrences are limited to five (5) occurrences annually each not
to exceed 4 hours. Consumers Energy will compensate the City for enrollment in
this program. Staff has reviewed the contract and performed the necessary
load testing of the plant to ensure compliance with the agreement. The
contract has been reviewed by legal counsel. Staff is recommending the 4-year
option, which includes an annual payment in the amount of $28,000 per year to
the city.
STAFF RECOMMENDATION: Authorize staff to sign the 2020 Emergency with
Generator Commercial and Industrial Demand Response Customer Agreement
with Consumers Energy for a period of 4 years.
J. Community Relations Committee Recommendations Clerk
SUMMARY OF REQUEST: Staff is seeking approval of the recommendations by
the Community Relations Committee to accept the resignations of Scott
Banninga from the CDBG/Citizen’s District Council-Citizen representing Ward 2
and Clyde Whitehouse – Business Improvement District – Assessed property
owner and to accept the appointment of Kathy Dennison to the Business
Improvement District.
STAFF RECOMMENDATION: To concur with the recommendations of the
Community Relations Committee and approve the resignations and
appointment.
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Motion by Commissioner Warren, second by Commissioner German, to accept
the consent agenda, as presented, minus items D, H, and I.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
2019-76 ITEMS REMOVED FROM CONSENT AGENDA:
D. Development and Reimbursement Agreement, Midtown/Nelson
Brownfield Economic Development
SUMMARY OF REQUEST: Approval of the Development and Reimbursement
Agreement for the Midtown Square II and Nelson Neighborhood Infill Housing
Brownfield between the city and its Brownfield Redevelopment Authority.
The Brownfield Plan Amendment for Midtown Square II and the Nelson
Neighborhood Infill Housing was approved by the Authority on April 9, 2019. This
agreement outlines how the Authority will reimburse the city for eligible costs in
the construction of 20 housing units in the Nelson Neighborhood through future
tax capture. The city will seek an approximately $3 million commercial loan and
have the residential units built by Dusendang Contractors. The city will receive
reimbursement of 5 percent per annum for the cost of borrowing for an
estimated total amount of $302,406. The Muskegon Brownfield Redevelopment
Authority approved the agreement at its September 10, 2019 meeting.
STAFF RECOMMENDATION: To approve the Midtown Square II and Nelson
Neighborhood Infill Housing Development and Reimbursement Agreement and
authorize the Mayor and City Clerk to sign the same.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the Midtown Square II and Nelson Neighborhood Infill Housing
Development and Reimbursement Agreement and authorize the mayor and city
clerk to sign the same.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
H. Establish Policy and Application for Block Parties Planning
SUMMARY OF REQUEST: Staff is seeking to establish a policy, application, and
fees to allow for block parties which close city streets. The goal is to encourage
neighborhood cohesion while placing reasonable restrictions to ensure safety
and minimize risk for complaints.
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• Application Fee - $50
o Application fee may be refunded if the application is denied by the
city.
o Application fee will not be refunded if event is cancelled by the
applicant.
• Cleaning Fee - $60/hour (if required)
o Will be charged to the applicant after the event if city property is
not returned to its original condition and/or trash is left on city
property.
STAFF RECOMMENDATION: Approve the block party policy, application, and
fees as proposed.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
to approve the block party policy, application,and fees as proposed.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Nays: None
MOTION PASSES
I. Rezoning of 1713 7th Street Planning
SUMMARY OF REQUEST: Staff initiated request to rezone the property at 1713 7th
Street from I-2, Heavy Industrial to B-4 General Business and MC, Medical Care.
This area is categorized by many different uses. In addition to residential homes,
the Rescue Mission, Norchuck Supply, Keene Lumber, a carpentry shop and
other small businesses are located in the direct vicinity. Staff feels that
downzoning from heavy industrial to general business is appropriate for this
neighborhood.
The Planning Commission unanimously recommended approval at their
September meeting.
STAFF RECOMMENDATION: To approve the rezoning from I-2, Heavy Industrial
to B-4 General Business and MC, Medical Care.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the rezoning from I-2, Heavy Industrial to B-4 General Business and
MC, Medical Care.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
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2019-77 PUBLIC HEARINGS:
A. CAPER 2018 Community & Neighborhood Services
SUMMARY OF REQUEST: Request to conduct a Public Hearing of the 2018
Consolidated Annual Performance Evaluation Report (CAPER) for projects
funded with CDBG and HOME HUD Entitlements to the City of Muskegon,
Community & Neighborhood Services Department.
STAFF RECOMMENDATION: To submit the 2018 CAPER including any public
comments received during the 20 day comment period ending September 27,
2019.
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
close the public hearing and submit the 2018 CAPER including any public
comments received during the 20-day comment period ending September 27,
2019.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson,and Gawron
Nays: None
MOTION PASSES
2019-78 NEW BUSINESS:
A. Royal Glen Partnership City Manager
SUMMARY OF REQUEST: The owners of Royale Glen are requesting a five-year
term extension and a 3 percentage point reduction in the annual PILOT
Payments at Royale Glen Apartments. In exchange, the ownership group is
committing to invest $600,000 in apartment upgrades/improvements and
$156,000 for improvements at Campbell Field.
Campbell Field previously housed the West Little League Program. Over the past
20+ years, local participation in little league baseball has waned significantly. As
a result, Campbell Field has only one field that is properly maintained by
Muskegon Catholic Central, and three fields that are poorly maintained for the
majority of the year. Staff is proposing that the three unmaintained fields be
removed, and the space be reforested with appropriate trees. Additionally, the
currenty playground would be removed and replaced, and a walking trail
would be added, connecting Royale Glen Apartments to the new playground.
Royale Glen is home to many families with children that would benefit from
additional access to the park as well as the upgrades to the rental units. We
envision Campbell Field eventually functioning similarly to Seyferth Park. The park
project would be at least partially financed by a $156,000 contribution from
Royale Glen Apartments. Any cost above that amount would be financed by
the City’s General Fund. The PILOT reduction is expected to cost the city
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approximately $5,500 annually. If this is agreeable to Commissioners, staff will
begin engaging the neighborhood relative to their desires for the park.
STAFF RECOMMENDATION: To authorize staff to negotiate an amendment to
the Royale Glen PILOT Agreement to include an extension to April 1, 2030, a 1%
City Service Fee, 1% PILOT Fee, and a requirement to invest at least $600,000 in
capital maintenance at Royale Glen and at least $156,000 in capital
improvements at Campbell Field Park.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to authorize staff to negotiate an amendment to the Royale Glen PILOT
Agreement to include an extension to April 1, 2030, a 1% City Service Fee, 1%
PILOT Fee, and a requirement to invest at least $600,000 in capital maintenance
at Royale Glen and at least $156,000 in capital improvements at Campbell Field
Park.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Johnson, Gawron, and
Hood
Nays: Turnquist
MOTION PASSES
B. Construction Agreement – Clark City Manager
SUMMARY OF REQUEST: Staff is seeking authorization to enter into the
construction management agreement with Clark Construction for the
construction of the Downtown Convention Center. The Construction costs are
$17,203,211 which is on target with the latest engineer estimate and will keep
the entire project within the current $19.4 Million budget.
The convention center will be funded via a 30-year general obligation bond,
which is expected to be issued in October. The annual payments, currently
estimated at $1,050,000 annually will be paid via the terms of a development
agreement that sets aside hotel room revenues to meet the debt obligations.
Staff is recommending that Clark not be obligated to obtain a performance
bond as part of this project, as all subcontractors have completed background
evaluations and staff is confident in their respective ability to perform.
STAFF RECOMMENDATION: To waive the performance bond requirements for
the Convention Center Project, authorize the Construction Management
Contract with Clark Construction in the amount of $17,203,211, and authorize
the Mayor to sign the contract.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to waive the performance bond requirements for the Convention Center Project,
authorize the Construction Management Contract with Clark Construction in the
amount of $17,203,211, and authorize the Mayor to sign the contract.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
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Hood, and Warren
Nays: None
MOTION PASSES
C. DDA On-Premise Liquor License for the LC Walker Arena Planning
SUMMARY OF REQUEST: To approve the Resolution for a Downtown
Development Authority On-Premise Liquor License for the LC Walker Arena. The
Liquor Control Commission allows for additional liquor licenses within Downtown
Development Authority Districts under certain conditions.
This license would cover all alcohol sales within the arena; including Rad Dad’s,
Carlisle’s and concessions.
STAFF RECOMMENDATION: To approve the DDA On-Premise Liquor License
for the L.C. Walker Arena and authorize the Mayor and Clerk to sign the
resolution.
Motion by Commissioner Warren, second by Commissioner Johnson, to approve
the DDA On-Premise Liquor License for the L.C. Walker Arena and authorize the
Mayor and Clerk to sign the resolution.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
D. Recreational Marihuana Regulatory Ordinance Planning
SUMMARY OF REQUEST: Staff initiated request to amend the City Code of
Ordinances and adopt a Recreational Marihuana Regulatory Ordinance under
the Michigan Regulation of Taxation of Marihuana Act.
STAFF RECOMMENDATION: To approve the Recreational Marihuana
Regulatory Ordinance as part of the City Code of Ordinances.
Motion by Commissioner Johnson, second by Vice Mayor Hood, to approve the
Recreational Marihuana Regulatory Ordinance as part of the City Code of
Ordinances.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood,and Rinsema-Sybenga
Nays: Warren and German
MOTION PASSES
SECOND READING REQUIRED
E. Amendment to the Medical Marihuana Facilities Overlay District to also
allow Recreational Marihuana facilities Planning
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SUMMARY OF REQUEST: Staff initiated request to amend Section 2330 of the
zoning ordinance, the Medical Marihuana Facilities Overlay District, to also allow
for Recreational Marihuana facilities under the Michigan Regulation and
Taxation of Marihuana Act.
Staff is proposing to amend the current Medical Marihuana Facilities Overlay
District to also allow for Recreational Marihuana Facilities. The building and site
requirements are essentially the same for recreational and medicinal facilities
and they would be allowed within the same overlay district, as depicted on the
map. The Planning Commission voted 7-1 in favor of recommending approval of
the ordinance.
STAFF RECOMMENDATION: To approve the amendments to Section 2330 of
the Zoning Ordinance to also allow for Recreational Marihuana Facilities.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to approve the
amendments to Section 2330 of the Zoning Ordinance to also allow for
Recreational Marihuana Facilities.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, and Warren
Nays: German, Rinsema-Sybenga, and Turnquist
MOTION PASSES
SECOND READING REQUIRED
ANY OTHER BUSINESS: Comments received by Commissioners.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were
received.
ADJOURNMENT: The City Commission meeting adjourned at 9:23 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
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