CITY OF MUSKEGON
CITY COMMISSION MEETING
NOVEMBER 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, November 12, 2019,
Mayor Gawron, opened the meeting with a blessing, 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, 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.
Absent: Vice Mayor Eric Hood
PUBLIC COMMENT ON AGENDA ITEMS: Public comments were received.
2019-87 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the October 22, 2019 regular
meeting and the October 29, 2019 special meeting.
STAFF RECOMMENDATION: To approve the minutes.
B. Resolution Establishing Authorized Signatories for MERS Finance
SUMMARY OF REQUEST: To approve a resolution establishing the Finance
Director, Assistant Finance Director, and City Manager positions as authorized
signatories for MERS Contracts and Service Credit purchase approvals.
STAFF RECOMMENDATION: To approve the resolution.
D. Approval of Building Contract: 567 Leonard Community & Neighborhood
SUMMARY OF REQUEST: To award the Building Contract for the lead abatement
of 567 Leonard to Badgerows Building and Remodeling for the City of
Muskegon’s Homebuyers Program through CNS.
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Lead Abatement Contract for 567 Leonard has been bid twice with no eligible
bidders. The only bid received was from an ineligible contractor. Since the
property has been owned by the City for ten months, CNS sought out Lead
Abatement contractors from the Medicaid CHIP Grant and only one contractor
was available to provide a bid based on their current work assignment.
STAFF RECOMMENDATION: To award Badgerows Building and Remodeling
the lead abatement contract for 567 Leonard in the amount of $39,230.00 for
the Community and Neighborhood Services Office.
E. Sewer & Water Engineering Assistance Public Works
SUMMARY OF REQUEST: Staff is requesting commission approval to enter into
Professional Service Agreements with three (3) engineering firms to provide
engineering assistance on a variety of water and sewer projects planned for
construction in 2020 and 2021. Staff negotiated with the three shortlisted
engineering firms and brings forward the following recommendations:
Prein & Newhof - $386,600.00 – Peck Street Trunk Sewer and Lead Water Service
Fleis & VandenBrink - $561,000.00 – Amity Avenue Trunk Sewer
Abonmarche - $106,100.00 – Harvey Booster Station Repairs and Filtration Plant
All three proposals have been reviewed by staff and found to be acceptable.
All three professional service agreements have been submitted for legal counsel
review. The first three projects are proposed for funding within the State
Revolving Fund and Drinking Water Revolving Fund programs which will provide
for some principal forgiveness on the projects.
These projects were not included in the original 19-20 budget as we were not
sure that we would be eligible for principal forgiveness again. Based on
preliminary responses from MDEGLE we will be able to receive principal
forgiveness and are recommending we proceed with these projects and will
include the requested amounts in a future reforecast.
AMOUNT REQUESTED: $1,053,700
Fund or Account: 590 = $250,000 (19/20)/$303,700 (20-21)
591= $250,000 (19/20)/$250,000 (20-21)
AMOUNT BUDGETED: $200,000
Fund or Account: 590 = $100,000
STAFF RECOMMENDATION: Authorize staff to sign the professional service
agreements with Prien & Newhof, Fleis & VandenBrink, and Abonmarche for the
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2020 and 2021 water and sewer infrastructure projects.
F. Electrical System Upgrades Public Works – Filtration
SUMMARY OF REQUEST: Authorize staff to enter into construction agreement
with Parkway Electric and Communications since they submitted the lowest
responsible bid of $118,582.
Tetratech completed design for the electrical upgrades to tie the two existing
generators at the Filtration Plant and solicited proposals from four electrical
contractors to complete the construction. Three bids were received and
Parkway Electric and Communications Services submitted the lowest responsible
and acceptable bid for $118,582. The project is budgeted in the CIP for $100,000
and $13,000 were expended on design services. The difference of $32,000
required will be addressed in the next budget reforecasting session.
AMOUNT REQUESTED: $132,000
Fund or Account: 591-60558-5400
AMOUNT BUDGETED: $100,000
Fund or Account: 591-60558-5400
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Parkway Electric and Communications for a cost of $118,582.
Motion by Commissioner Warren, second by Commissioner German, to accept
the consent agenda, except item C.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Warren, German, and Rinsema-
2019-88 ITEMS REMOVED FROM CONSENT AGENDA:
C. Management Agreement Fisherman’s Landing Finance
SUMMARY OF REQUEST: To approve the First Amendment to the Management
Agreement for Fisherman’s Landing and the Letter of Understanding between
the City and Fisherman’s Landing Management.
The current Management Agreement with Fisherman’s Landing expires at the
end of this year. The Amendment will extend the term to December 31, 2021.
Additionally, we have put together a Letter of Understanding between the City
and the Fisherman’s Landing Management regarding some concerns the
Management has had over the last several years. The Letter of Understanding
give the Manager access to the daily Launch Ramp deposits, provides
Fisherman’s Landing with more of a police presence to enforce parking
violations, and allows for unlimited sales of annual permits.
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STAFF RECOMMENDATION: To approve the First Amendment to the
Management Agreement and the Letter of Understanding with Fisherman’s
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the First Amendment to the Management Agreement and the Letter of
Understanding with Fisherman’s Landing.
ROLL VOTE: Ayes: Johnson, Gawron, Warren, German, Rinsema-Sybenga, and
2019-89 PUBLIC HEARINGS:
A. Public Hearing on the Brownfield Plan for 1208 Eighth Economic
SUMMARY OF REQUEST: To hold a public hearing on the request for a Brownfield
Plan Amendment for 1208 Eighth for Core Development and to consider
approving the resolution.
Core Development submitted a Brownfield Plan Amendment for 1208 Eighth
Street to the Brownfield Redevelopment Authority, which approved it on
October 8, 2019. The Muskegon City Commission, On October 22, 2019,
adopted a resolution setting a public hearing for November 12, 2019. The
amendment is intended to identify eligible activities proposed for the brownfield
site owned by Core Development. With an estimated investment of $7090,000
for redevelopment of a commercial building at 1208 Eighth, the plan anticipates
eligible expenses of $145,129 to be paid through the capture of tax increments
through 2054. As part of the reimbursements, the city will receive a $1,000
annual fee for its expenses. After all eligible costs incurred by the various parties
and reimbursed, the BRA may, as the capture term provides, continue to
capture local taxes for five more years for deposit into a Local Brownfield
STAFF RECOMMENDATION: To close the public hearing and approve the
Resolution Approving the Brownfield Plan Amendment for 1208 Eighth for Core
PUBLIC HEARING COMMENCED: Troy Wasserman, developer, gave an
overview of the project.
Motion by Commissioner Johnson, second by Commissioner Warren, to close
the public hearing and approve the Brownfield Plan Amendment for 1208 Eighth
for Core Redevelopment.
ROLL VOTE: Ayes: Gawron, Warren, German, Rinsema-Sybenga, Turnquist, and
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2019-90 NEW BUSINESS:
A. Convention Center Brownfield Grant City Manager
SUMMARY OF REQUEST: The Convention Center project incurred an
unexpected expense for foundation dewatering estimate at $499,999. Staff
worked diligently to identify a funding source for the change order. Michigan
Department of Environment, Great Lakes, and Energy (EGLE) has approved a
grant to the City of Muskegon in the amount of $499,999. Staff is seeking
approval to authorize an expense of up to $499,999 to treat contaminated
groundwater, and authorize staff to sign the grant agreement to cover the costs
of the treatment.
Much of downtown Muskegon is built upon soils that were brought in and used
as fill. At some point in the past 50 years, the soils under 4th Street became
contaminated with PFOS. During normal ground water testing a s part of the
dewatering process, it was determined that PFOS levels were too high to
discharge the water into either the storm sewers or the county wastewater
system. The costs will not be borne by one individual contractor. It is likely that
there will be 6-8 contractors involved in the process; we followed the same
selection process as was used to identify subcontractors on the overall
convention center project. After learning of the potential for the great
dewatering/treatment costs, staff worked to identify funding sources, as we did
not want to use our entire contingency budget so early in the construction
schedule. After chasing dozens of potential options to reduce the costs, we
settled on applying for a grant through EGLE. Last week, we received approval
from EGLE for the entire request – the agreement is attached. This action has
cost the construction crew approximately 4 weeks. Accordingly, the crews have
been authorized to begin on-site treatment effective November 12, 2019.
STAFF RECOMMENDATION: To authorize staff to accept the $499,999
Brownfield Grant and expend the funds as per the Project Budget included in
Appendix A of the Grant Agreement.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to authorize staff to accept the $499,999 Brownfield Grant and expend the funds
as per the Project Budget included in Appendix A of the Grant Agreement.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson, and
ANY OTHER BUSINESS: Commissioner German requested an update on the
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city’s water, Sanjeev Mungarwardi was in attendance and responded.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were
ADJOURNMENT: The City Commission meeting adjourned at 6:28 p.m.
Ann Marie Meisch, MMC – City Clerk
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