City Commission Minutes 03-26-2019

View the PDF version Google Docs PDF Viewer

     CITY OF MUSKEGON
       CITY COMMISSION MEETING
           MARCH 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, March 26, 2019, Deacon
Bill Cook, St. Mary’s, 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 John Schrier, and City Clerk Ann Meisch.
Absent:     Commissioner Willie German, Jr.
INTRODUCTIONS/PRESENTATION:
   A. Introduction of Jake Eckholm and Peter Wills      Planning & Economic
      Development
Leigh Ann Mikesell introduced Jake Eckholm and Peter Wills, two new city
employees. Jake Eckholm is the new Economic Development Director and Peter
Wills is the new Director of Strategic Initiatives. Both men come to the city with
experience that is relevant to their positions.
   B. ADA Update         EEO/Affirmative Action Director
Dwana Thompson, EEO/Affirmative Action Director outlined some of the efforts
that have been made in recent months relevant to the ADA. Mike Franzak, from
the Planning Department, reviewed the efforts being made in the planning
department to ensure consideration of ADA requirements. Leo Evans, City
Engineer, updated the commission on efforts that are ongoing at the
Department of Public Works.
2019-23     CONSENT AGENDA:
   A. Approval of Minutes      City Clerk
SUMMARY OF REQUEST: To approve minutes of the March 11, 2019 Worksession
and March 12, 2019 Regular Meeting.


                                         Page 1 of 12
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the minutes.
   B. Fireworks Display Permit for Muskegon Country Club        City Clerk
SUMMARY OF REQUEST: Melrose Pyrotechnics, Inc. is requesting approval of a
fireworks display permit for July 3, 2019 at the Muskegon Country Club, 2801
Lakeshore Drive. 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. Community Relations Committee Appointment Recommendations
      City Clerk
SUMMARY OF REQUEST: To accept the recommendation to appoint Kimi
George to the Historic District Commission and Marty Ferriby to the Local Officers
Compensation Commission.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:      To concur with the recommendations of the
Community Relations Committee and approve the appointments.
   D. Rescission of Land Use Restrictions for 350 Shoreline Drive
      Planning & Economic Development
SUMMARY OF REQUEST: Authorize the Mayor and Clerk to sign the notice of
rescission of land use restrictions for the City owned property located at 350
Shoreline Drive. This document rescinds the previous land use restrictions on the
property and will be filed with the new restrictive covenant already approved
by the commission at the February 12, 2019 meeting.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:             Authorize the Mayor and Clerk to sign the
rescission of land use restrictions.
   E. Demolition Contract for West Shoreline Correctional Facility
      Planning & Economic Development
SUMMARY OF REQUEST: Award the demolition of existing buildings at the West
Shoreline Correctional Facility to Melching, Inc. Three contractors were

                                         Page 2 of 12
contacted and reviewed the site. All three supplied bids as follows.
Melching     $338,910.10
JMB Demolition         $452,300
Bierlein Companies, Inc.       $838,400
FINANCIAL IMPACT:            $338,910.10
BUDGET ACTION REQUIRED:             None. The cost of demolition will be reimbursed
by the MEDC grant.
STAFF RECOMMENDATION:               Award the project to the low bidder, Melching,
Inc.
   F. Approval of 2019-2020 Procurement Contracts for CNS
      Community & Neighborhood Services
SUMMARY OF REQUEST: To approve the following Trades-Serviced procured
through sealed bid proposals producing the lowest responsible bidder with
potential for one year extension.
      Appraisal:       Midwest Real Estate
      Building:        Midwest Builders
      Electrical:      Belasco Electric
      Foundation Repair:            Deitz House Moving Engineers
      House Building Spec Writer:          Hager Consulting
      Interior Cleaning: True Clean Building Services
      Property Maintenance: Walker Handyman Enterprises
      Lead Assessment & Clearance:               AAA Lead Inspections
      Mechanical:            Bishop Heating and Cooling
      Painting:        Walker Handyman Enterprises
      Title Service:         AAA National Title Group
      Tree Services:         Integrity Tree Services
      Tub Glazing:           Pro Cleaners
      Vinyl Installer:       Mark N Tucker LLC
FINANCIAL IMPACT:            None
BUDGET ACTION REQUIRED:             None
STAFF RECOMMENDATION:          To approve the procured list of contractors and
possible one year extension for Trade Contractors-Service Providers for the
Community and Neighborhood Services during 2019.

                                             Page 3 of 12
   G. Approval of Sale: City-Owned Home at 1350 Eastwood
      Community & Neighborhood Services
SUMMARY OF REQUEST: To approve the resolution and instruct the Community
and Neighborhood Services department to complete the sales transaction with
Alexis Eziukwu for the rehabilitated home at 1350 Eastwood Drive: Purchase
price $137,000.
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.
   H. Request to Rezone 971 & 975 Washington Avenue
      Planning & Economic Development
SUMMARY OF REQUEST: Request the rezone the properties at 971 & 975
Washington Avenue from R-2, Single Family Medium Density Residential to Form
Based Code, Neighborhood Edge, by Brett Gilbert.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the rezonings.
COMMITTEE RECOMMENDATION:        The Planning Commission unanimously (8-0)
recommended approval of the rezonings at their March 14 meeting.
SECOND READING REQUIRED
   I. Amendment to the Form Based Code Section of the Zoning Ordinance
      Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to amend the zoning ordinance
to allow research and development as a permitted use in the Downtown and
Mainstreet context areas of the Form Based Code.
STAFF RECOMMENDATION:           To approve the zoning ordinance amendment.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
COMMITTEE RECOMMENDATION:           The Planning Commission unanimously
recommended approval of the request (8-0), as long as staff recommends a
definition for “research and development” that excludes animal testing, noise
and odor.
SECOND READING REQUIRED

                                         Page 4 of 12
   J. Request to Approve Purchase Agreement 241 and 255 W. Western Avenue
      Planning & Economic Development
SUMMARY OF REQUEST: City staff has been working with a housing developer
that is interested in creating multifamily housing on these lots. The City
Commission authorized the City Manager to negotiate a purchase agreement
at the March 7, 2018 meeting.
FINANCIAL IMPACT:        Funds from the sale will go into the General Fund.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the purchase
agreement.
   K. Amendment to the Single-Family Residential Section of the Zoning
      Ordinance Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to amend the Single Family
Residential section of the zoning ordinance to clarify that short and long term
rentals are not prohibited uses.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION:         The Planning Commission unanimously
recommend approval of the request (8-0) at their March 14 meeting.
SECOND READING REQUIRED
   L. Hartshorn Marina – Resolution of Support for Waterways Program Grant
      Application and Commitment for Matching Funds
      Department of Public Works
SUMMARY OF REQUEST: The Engineering Department would like to apply for a
Waterway Program Grant through the Michigan Department of Natural
Resources. These funds would be used to complete upgrades and repairs at
Hartshorn Marina in conjunction with the recommendations prepared by
Abonmarche.
We are proposing a total project funding for this round of $700,000 of which
$350,000 would be local match and $350,000 would be funding from MDNR.
Funding would be available during the 19-20 budget cycle.
The MDNR application requires a resolution of support and commitment for the
matching funds.
FINANCIAL IMPACT:        $350,000 in fiscal year 19/20
BUDGET ACTION REQUIRED:         None at this time.


                                         Page 5 of 12
STAFF RECOMMENDATION:        Approve the resolution of support for the
Waterways Program Grant application and commit to funding the required
match and engineering costs.
   M. Sheridan & Olthoff – Resolution of Support for Transportation Economic
      Development Funding Application and Commitment for Matching Funds
      Department of Public Works
SUMMARY OF REQUEST: The Engineering Department would like to apply for
Category A Transportation Economic Development funding through the
Michigan Department of Transportation. These funds would be used to resurface
Sheridan Drive and Olthoff Drive in the industrial park.
Construction is estimated at $900,000, and the city would be required to provide
matching funds of approximately $250,000 plus engineering costs. Funding is
available starting as early as 2019.
The MDOT application requires a resolution of support and commitment for the
matching funds.
FINANCIAL IMPACT:         $300,000 split over fiscal year 18/19 and 19/20
BUDGET ACTION REQUIRED:         None at this time.
STAFF RECOMMENDATION:        Approve the resolution of support for the
Category A Transportation Economic Development application and commit to
funding the required match and engineering costs.
   N. H91841 Walton Avenue & Marsh Street             Department of Public Works
SUMMARY OF REQUEST: To award contract (H 91841) for construction of Marsh
Street and Walton Avenue, including paving of existing gravel road with water
service improvements.
Seven contractors submitted bids for this project as follows:
      McCormick Sand, Inc.              $159,293.50
      Terra Contractors                 $184,209.04
      Redline Excavating, LLC           $170,662.06
      Accurate Excavating, LLC          $168,055.75
      Jackson-Merkey Contractors        $168,233.55
      Tiles Excavating, Inc             $199,795.58
      Epic Excavating                   $245,684.10
FINANCIAL IMPACT:         $159,293.50
BUDGET ACTION REQUIRED:          None. Initially budgeted for $150,000.00 from the
CIP but will be adjusted in the next budget forecast.


                                          Page 6 of 12
STAFF RECOMMENDATION:            Award the project to the low bidder, McCormick
Sand, Inc.
   O. H91858 Muskegon Avenue and Webster Avenue Re-Paint
      Department of Public Works /Engineering
SUMMARY OF REQUEST: To award contract (H91858) for street pavement
marking improvements along Muskegon Avenue and Webster Avenue.
One contractor submitted bids for this project as follows:
PK Contracting      $24,761.46
FINANCIAL IMPACT:          $24,761.46
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            Award the project to the low bidder, PK
Contracting.
   Q. City Hall – Chiller Unit   Department of Public Works
SUMMARY OF REQUEST: Authorize staff to direct Trane to complete repairs to
the City Hall air conditioning system in the amount of $8,208.00.
Repairs were identified during the fall shut down period that were required to
ensure the system is operating efficiently when restarted.
FINANCIAL IMPACT:          $8,208.00
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            Authorize staff to hire Trane to complete needed
air conditioning system repairs.
   R. Procurement of Bubbler Control Panels          DPW/Filtration
SUMMARY OF REQUEST: Authorize staff to procure six new bubbler control
panels from Commerce Controls to replace old panels at the Water Filtration
Plant.
FINANCIAL IMPACT:           Existing bubbler control panels that provide level
indication are old and failing. They are in need of replacement. Commerce
Controls has provided instrumentation services at the plant for many years and
they will procure parts, build six panels and ship for installation at the cost of
$44,730.00. Plant staff will install the panels.
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:      Authorization for staff to procure bubble control
panels from Commerce Controls at a cost of $44,730.00
   S. Fifth Third Updated Account Resolution         Finance
SUMMARY OF REQUEST: The City has used Fifth Third Bank as our primary


                                          Page 7 of 12
depositor bank since 2007. They are asking to update our Treasury Management
Agreement and our Account Resolution. There have been many personnel
changes at the City since the original agreements were signed.
FINANCIAL IMPACT:         None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:           Approval of the updated Account Resolution for
Fifth Third Bank and authorize the Clerk to sign.
   T. First Amendment to the Lumberjacks Lease            City Manager
SUMMARY OF REQUEST: City staff is requesting approval of amendments to the
Lumberjack’s lease. The changes are within the original spirit of the agreement
approved by commission, but do provide more clarity as we seek to increase
sponsorship and lease revenues.
FINANCIAL IMPACT:         None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            To authorize the Clerk and Mayor to sign the
lease.
Motion by Commissioner Warren, second by Commissioner Johnson, to approve
the consent agenda as presented, except item P.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
           Hood
             Nays: None
MOTION PASSES
2019-24 REMOVED FROM CONSENT:
   P. Set Dry Storage User Fee (Catamaran)            Department of Public Works
SUMMARY OF REQUEST: Set the dry storage fee (catamaran) at $995 per post.
Posts will be offered on a first come, first served basis, and prior customers will be
notified by letter that storage is again being made available. Environmental
concerns including high water and impacts to critical dunes have eliminated
our ability to provide storage at the water’s edge. A small area near the
volleyball courts has been identified as a location that could accommodate
these boats. Ten posts will be offered on a trial basis for the 2019 season only. No
catamaran storage can be provided at Harbour Towne Beach.
FINANCIAL IMPACT:         Revenue generated by sale of storage area.
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            Approve the fee for dry storage.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,

                                           Page 8 of 12
to approve the fee for dry storage.
ROLL VOTE: Ayes: Rinsema-Sybenga, Johnson, Gawron, Hood, and Warren
            Nays: Turnquist
MOTION PASSES
2019-25   PUBLIC HEARINGS:
   A. Establishment of a Commercial Redevelopment District –
      351 W Western Ave    Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 255 of 1978, as amended, 351
Phase II, 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 provide a 50% reduction
in the number of mills levied as ad valorem taxes, excluding the State Education
Tax.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Establishment of the Commercial
Redevelopment District.
PUBLIC HEARING COMMENCED:
No public comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
close the public hearing and establish the Commercial Redevelopment District
at 351 W. Western Avenue.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
           Warren
            Nays: None
MOTION PASSES
   B. Issuance of a Commercial Facilities Exemption Certificate–351 Phase II,LLC
      Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 255 of 1978, as amended, 351
Phase II, LLC has requested the issuance of a Commercial Facilities Exemption
Certificate for their project at 351 West 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 $3,221,802 in the commercial space, which qualifies
them for an abatement for 10 years.
FINANCIAL IMPACT:        The certificate provides a 50% reduction in the number

                                         Page 9 of 12
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:
Josh and Chris Benedict, owners, spoke about the project.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to close the public hearing and issue the Commercial Facilities Exemption
Certificate for 351 W. Western Avenue.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and Rinsema-
           Sybenga
            Nays: None
MOTION PASSES
2019-26     NEW BUSINESS:
   A. Request to Adopt the Proposed Amendments to the Master Land Use Plan
      Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to amend the City of Muskegon
Master Land Use Plan to revise the 2008 Downtown & Lakeshore Redevelopment
Plan Future Land Use Map and include the Imagine Muskegon Lake Plan. The
regional entities have been given the required 63 day review time and a public
hearing was held at the March 14 Planning Commission meeting.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Staff recommends approval of the Master Plan.
COMMITTEE RECOMMENDATION:       The Planning Commission unanimously
recommended approval of the Master Plan at their March 14 meeting.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to approve the Master Plan.
      Motion to Amend the motion to include language opposing RV camp at
      Pere Marquette Park at the ovals.
      ROLL VOTE: Ayes: Warren, Johnson
                  Nays: Gawron, Hood, Rinsema-Sybenga, Turnquist
      MOTION FAILS
VOTE ON ORIGINAL MOTION:
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, Rinsema-Sybenga, and

                                         Page 10 of 12
             Turnquist
             Nays: None
MOTION PASSES
   B. Concurrence with the Housing Board of Appeals Notice & Order to
      Demolish 593 W Webster    Public Safety
SUMMARY OF REQUEST: This is to 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 it be demolished within thirty (30) days
or infraction tickets may be issued. It is further requested that administration be
directed to obtain bids for the demolition of the structure 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 Budget
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Turnquist,
to concur with the Housing Board of Appeals decision to demolish.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, Turnquist, Johnson, and
           Gawron
             Nays: None
MOTION PASSES
   C. Second Quarter 2018-19 Budget Reforecast           Finance
SUMMARY OF REQUEST: At this time staff is transmitting the Second Quarter
2018-19 Budget Reforecast which outlines proposed changes to the budget that
have come about as a result of changes in revenue projects, policy priorities,
labor contracts, updated economic conditions, or other factors.
FINANCIAL IMPACT:       A summary of second quarter proposed adjustment to
the budget are as follows:
   •   General Fund revenues are reforecast to be $291,000 lower than the
       original budget, largely due to lower projections for building permit
       revenue. The permit revenues are projected to be down $700,000 for
       several reasons including Mercy Health paying up front for several
       commercial and multi housing projects that are progressing slower than
       expected to get to the building stage. The income tax revenues are being
       projected up $100,000 and several other revenue line items were


                                         Page 11 of 12
       adjusted.
   •   General Fund expenditures are reforecast to be $403,518 lower than the
       original budget. Permit revenue was decreased so that decreased our
       payment to SafeBuilt and police wages are down after retirements and
       resignations.
   •   There were several refinements to the Capital Projects budget now that
       we have actual projects costs and know whether grant funding has been
       approved the bottom line is a slight decrease in capital expenditures.
BUDGET ACTION REQUIRED:       City commission approval of this reforecast will
formally amend the City’s 2018-19 budget.
STAFF RECOMMENDATION:          Approval
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve the Second Quarter 2018-19 Budget Reforecast.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
           Hood
             Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT:       The City Commission meeting adjourned at 8:25 p.m.


                                     Respectfully Submitted,




                                     Ann Marie Meisch, MMC – City Clerk




                                          Page 12 of 12

Top of Page