City Commission Minutes 12-10-2019

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
          DECEMBER 10, 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, December 10, 2019,
Mayor Stephen 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
HONORS AND AWARDS:
   A. Recognition of LLS, Inc – Good Buddy Bucks Program
The Mayor and City Commission recognized and thanked LLS Inc., for its
participation in the eighth year of the successful “Good Buddy Bucks” program
which rewards youth for displaying “Good Character” and allow youth to
positively interact with law enforcement.
   B. Recognition of Max McKee/Mart Dock for Sponsorship and Participation in
      Youth Activities
The Mayor and City Commission recognized and thanked Mac McKee and Mart
Dock for sponsorship and participation in numerous area youth activities and
youth/police relationship building activities.
   C. Firearm Activity Information Presentation    Public Safety
Public Safety Director Chief Jeffrey Lewis, Captain Shawn Bride, and Sergeant
Jeff Felinski gave a presentation to the Mayor, City Commission, and the public
entitled Intelligence-Led Policing & Community Relations – A Comprehensive
Strategy for Reducing Gun Violence.


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PUBLIC COMMENT ON AGENDA ITEMS:             Comments were received from the
public.
2019-95     CONSENT AGENDA:
   A. Approval of Minutes      City Clerk
SUMMARY OF REQUEST: To approve the minutes of the November 26, 2019
regular meeting.
STAFF RECOMMENDATION:          To approve the minutes.
   B. Transmittal of June 30, 2019 Comprehensive Annual Financial Report
      Finance
SUMMARY OF REQUEST: The City’s June 30, 2019 Comprehensive Annual
Financial Report (CAFR) will be distributed to the City Commissioner via email
and hard copy. The CAFR is also be available on the City’s website. The CAFR
includes the annual independent auditor’s report as required by state law. At
this time the CAFT is being formally transmitted to the City Commission. The CAFR
has been prepared in accordance with all current Governmental Accounting
Standards Board pronouncements and also includes the single audit of federal
grants received by the City.
STAFF RECOMMENDATION:          To accept the June 30, 2019 Comprehensive
Annual Financial Report and authorize staff to transmit the CAFR to appropriate
federal, state, and private agencies.
      https://www.muskegon-
      mi.gov/cresources/2019%20CAFR%20Web%20Version.pdf
   C. Equipment Replacement           DPW/Equipment Division
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one International 2021 HV607 Cab and Chassis from West Michigan
International, the Mi Deal State contract holder. We are also asking permission
for Terex Utilities to build and assemble the aerial boom and body of the truck.
The amount requested is $179,509.80.
STAFF RECOMMENDATION:          Authorize staff to move forward with the
purchase.
   D. MDOT Agreement – Lakeshore Drive at Beach Street         Public Works
SUMMARY OF REQUEST: Staff is requesting approval of the contact with MDOT
for the construction of the round-a-bout at Lakeshore Drive and Beach Street
and approval of the resolution authorizing the Mayor and Clerk to sign the
contract.
This is the standard contract governing projects that are constructed using
federal funds through MDOT. The estimated cost for the project construction is
$274,800 with $250,000 of that being eligible for reimbursement with federal

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funds through the Congest, Mitigation and Air Quality (CMAQ) program.
STAFF RECOMMENDATION:         Approve the contract and resolution and
authorize the Mayor and Clerk to sign both.
   E. Coastal Zone Grant Application        Public Works
SUMMARY OF REQUEST: Staff is requesting Commission approval to apply for a
Coastal Zone Grant through the Michigan Department of Environment, Great
Lakes and Energy (MDEGLE) and approval of the resolution.
Staff is working towards the submittal of a grant application to the MDEGLE for a
Coastal Zone Grant. The focus of the grant application will be based on
providing the city with a management plan for the 10+ miles of coastline on
Lake Michigan and Muskegon Lake that can be incorporated into the City’s
master Plan to guide decision about projects that fall along the coastline. The
grant is also intended to help identify best practices for mitigating damage from
flooding and erosion. Grans provide a 50/50 match and applications are due
December 20th.
FINANCIAL IMPACT:        $15,000 + In-Kind Services
STAFF RECOMMENDATION:          Authorize staff to apply for the coastal zone grant
and approve the resolution of support.
   G. Approval of Lead Abatement Contract for 602 Ada
      Community & Neighborhood Services
SUMMARY OF REQUEST: To award the Building Contract for the lead abatement
of 602 Ada to Badgerows Building and Remodeling for the City of Muskegon’s
Homebuyers Program through Community and Neighborhood Services.
The Lead Abatement Contract for 602 ADA received two bids. Community and
Neighborhood Services would like to award the contract to Badgerows Building
and Remodeling for $39,925.
         •   Nassau Construction - $39,950 (Incomplete bid received)
         •   Badgerows Building and Remodeling - $39,925
STAFF RECOMMENDATION:        To award Badgrerows building and Remodeling
the lead abatement contract for 602 Ada in the amount of $39,925 for the
Community and Neighborhood Services Office.
   H. Approval of Rehab Contract for 602 Ada
      Community & Neighborhood Services
SUMMARY OF REQUEST: To award the Building Contract for the rehabilitation of
602 Ada to Custom Exteriors for the City of Muskegon’s Homebuyers Program
through Community and Neighborhood Services.
The Rehabilitation Contract for 602 Ada received three bids. Community and


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Neighborhood Services would like to award the contract to Custom Exteriors for
$82,560. The following bids include roof/alternative bids.
   •   Nassau Construction - $80,135
   •   Badgerows Building and Remodel - $87,049 (excludes plumbing,
       electrical, and mechanical costs)
   •   Custom Exteriors - $82,560
STAFF RECOMMENDATION:         To award Custom Exteriors the rehabilitation
contract for 602 Ada in the amount of $82,560 for the Community and
Neighborhood Services Office.
   I. Approval of Rehab Contract for 567 Leonard
      Community & Neighborhood Services
SUMMARY OF REQUEST: To award the Building Contract for the rehabilitation of
567 Leonard to Badgerows Building and Remodeling for the City of Muskegon’s
Homebuyers Program through Community and Neighborhood Services.
The Rehabilitation Contract for 567 Leonard has be bid twice, with no bidders*.
Since the property has been owned by the City for ten months, CNS sought out
a contractor to finish the rehab project. Badgerows Building and Remodeling
has given a price of $47,850.00 – excluding the Plumbing, Electrical, and
Mechanical costs, which are as follows:
   •   Shield Plumbing - $7,230.00
   •   Jewett Heating and Cooling - $6,200.00
   •   Belasco Electric - $10,663.00
*The only other bid received was from an ineligible contractor
STAFF RECOMMENDATION:            To award Badgerows Building and Remodeling
the rehabilitation contract for 567 Leonard in the amount of $47,850.00 (($71,943
including plumbing, mechanical, and electrical), for the Community and
Neighborhood Services Office.
   K. Revocation of Alley Vacation Resolutions      Planning
SUMMARY OF REQUEST: Request to rescind the resolution that vacated the alley
behind the MATS bus station and the proposed Leonard Building that fronts
Western Avenue.
STAFF RECOMMENDATION:           To adopt the resolution rescinding the resolution
that vacated the alley behind the MATS bus station and the proposed Leonard
Building that fronts Western Avenue.
   M. Arena Restrooms – Phase 2        City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the proposal from Platinum
Construction to renovate the two remaining public restrooms in the arena.

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The construction of the two new restrooms along the concourse is now
complete. Platinum provided the lowest qualified bid for that work earlier this
Fall. They complete the work on-time and on-budget. In the time since the onset
of the original restroom construction project, it has become clear that a number
of major repairs/improvements are needed in the other existing restrooms (much
of the plumbing is original to the building). Additionally, we remain under code
requirements for female toilets. The timing for those repairs is very good from a
project sequencing standpoint, as we still have the Western Avenue restrooms in
place (demolition will occur starting in March) and Platinum is still on site finishing
their punch list. Staff asked Platinum to extend their pricing from the first phase to
the second phase. Staff is satisfied that they have done so, and expects that the
best value for the project will come from awarding the renovation of the second
phase of restroom work to Platinum as well. The price is slightly higher because
additional work will be required in the locker rooms below the restroom – but will
result in much-needed improvements to locker room lighting and aesthetics,
and will make future restroom renovations easier because plumbing will be more
accessible.
STAFF RECOMMENDATION:          Authorize the City Manager to accept the
proposal of $266,173.69 from Platinum Contracting Group, and authorize a
contingency budget of $14,826.31 (5.5%)
   N. Community Relations Committee Recommendations               Clerk
SUMMARY OF REQUEST: To accept the addition, resignations, removals and
appointments for various Community Relations Committees.
   •   Addition of two positions to the Lakeside Business Improvement District
   •   Resignation of Doug Pollock and Gary Post from the downtown Business
       Improvement District and Poppy Sias-Hernandez from the Community
       Development Block Grant/Citizen’s District Council
   •   Removals of Dian Murray-McKinley and Destinee Keener from the Equal
       Opportunity Committee
   •   Appointments of Ron Jenkins and Allen Serio to the Lakeside Business
       Improvement District; Kim Martens to the Farmers Market Advisory Board,
       Bruce Lindstrom and Bob Tarrant reappointed to the downtown Business
       Improvement District
STAFF RECOMMENDATION:       To concur with the recommendations of the
Community Relations Committee and approve the additions, resignations,
removals, and appointments.
Commissioner Rinsema-Sybenga disclosed the fact that his wife works for
Community enCompass, an organization that is a party in a consent agenda
item above.


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Motion by Commissioner Warren, second by Commissioner Johnson, to accept
the consent agenda as presented, except items F, J, and L.
ROLL VOTE: Ayes: Gawron, Warren, German, Rinsema-Sybenga, Turnquist, and
           Johnson
            Nays: None
MOTION PASSES
2019-96     ITEMS REMOVED FROM CONSENT AGENDA:
   F. Allocation of Expected Muskegon County Senior Millage Additional Funds
      Community & Neighborhood Services
SUMMARY OF REQUEST: To approve allocations for $85,546 of Muskegon County
Senior Millage funds. This funding is specific to our Senior Citizens, age 60 and
older, to coordinate and provide services, programs, and/or activities in our
jurisdiction.
Planning Division is asking for Commission approval to fund the following
programs:
The Power of Produce for Senior Citizens on Tuesdays at the Farmers market. The
Fruitport Lions and the Shoreline Branch of the Lions manage the program to
reimburse Farmers through a token-reimbursement system. The Clerk’s Office is
asking for funds to extend the program period into the fall season. - $5,000
Department of Public Works has been replacing water lines in the city. For every
replacement ($6,000), these allocated dollars will cover ½ of the cost for a senior
citizen, age 60 or above. The Water Department will use these funds to offset
their annual cost of water lines replaced in our city. - $35,000
Muskegon County Senior Millage Major Home Repair program through the
Community and Neighborhood Services Department is currently closed. This
Major repair program will allow for us to serve our citizens who live in housing
that is substandard – a threat to safety, health and live. The need has been
greater than our budget. We will utilize these funds to stretch our CDBG funding
of Priority Housing repairs to cover us until we receive our 2020 allocations from
HUD. - $42,046
Muskegon Senior Housing Assistance is a newly framed program to offer Seniors
(60 or older) rental deposits if moving into any of our four senior high-rise
locations: Jefferson Tower, Hartford Terrace, Bayview Towers, or Berkshire. These
deposits are to be kept in-house for other seniors who do not have an adequate
deposit to move in. - $3,000
STAFF RECOMMENDATION:         To accept and allocation additional Muskegon
County Senior Millage award for 2020.



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Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to accept and allocate the additional Muskegon County Senior Millage award
for 2020.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson, and
           Gawron
            Nays: None
MOTION PASSES
   J. Approval of Neighborhood Enterprise Zone Certificate for 1245 5th Street
      Planning
SUMMARY OF REQUEST: Community encompass has requested the issuance of
a Neighborhood Enterprise Zone Certificate for the newly constructed home at
1245 5th Street. The estimated cost of the new home is $177,000.
STAFF RECOMMENDATION:          Approve the NEZ Certificate for 1245 5th Street.
Motion by Commissioner German, second by Commissioner Johnson, to
approve the NEZ Certificate for 1245 5th Street.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson, and
           Gawron
            Nays: None
MOTION PASSES
   L. Non-Union Pay Benefits City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the 2020 Non-Union
Employee Wage and Benefit Program.
The following changes are proposed:
      1. Cost of living adjustment of 1.9%
      2. Increase in employee residency incentive from 4% to 4.5%
      3. Increase in employer contribution to retirement for non-pension
         employees from 6% to 9%
      4. One-time bonus for employees: 0-10 years ($250); 11-20 years ($500);
         21+ years ($750)
The additional cost for the fiscal year will be $87,830. No budget amendment will
be necessary.
STAFF RECOMMENDATION:          Approve the 2020 non-union Employee Wage
and Benefit Program.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the 2020 Non-Union Employee Wage and Benefit Program.

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ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
           Warren
             Nays: None
MOTION PASSES
2019-97   PUBLIC HEARINGS:
   A. Public Hearing on the Docks Brownfield Plan, 1490 Edgewater Economic
      Development
SUMMARY OF REQUEST: To hold a public hearing on the request for a Brownfield
Plan Amendment for The Docks, 1490 Edgewater for Damfino Development LLC
and to consider the resolution.
Damfino Development proposes a local-only tax capture brownfield plan for the
former Pigeon Hill sand mine property at the west end of Muskegon lake. Plans
are for 240 residential site condominiums needing $18.5 million in initial private
capital. The 30-year plan identifies $20,097,500 in eligible expenses plus interest
on borrowing until tax increments pay for the expenses. Part of eligible expenses
is of an estimated $3 million for public infrastructure for the city’s construction of
the traffic circle at Beach Street and Lakeshore Drive, improvements to
Edgewater Street and other roads surrounding the development. The plan
estimates The Docks would create $111.4 million in new property value in the city
after 30 years. The plan also includes $10,000 a year administrative fee to the
city. If the 30-year plan pays off expenses early, the city can have up to five
years of additional tax capture for a brownfield revolving fund. The
reimbursement to the developer vs. City would be done on a prorated basis.
STAFF RECOMMENDATION:        To close the public hearing and approve the
Brownfield Plan Amendment for The Docks, 1490 Edgewater for Damfino
Development LLC with the resolution authorizing the Mayor and City Clerk to
sign.
PUBLIC HEARING COMMENCED:
Scott Musselman spoke about the project. An attorney from Warner Norcross
also spoke.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to close the public hearing and approve the Brownfield Plan Amendment for The
Docks, 1490 Edgewater for Damfino Development LLC with the resolution,
authorizing the Mayor and City Clerk to sign.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Warren, and
           German
             Nays: None
MOTION PASSES

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2019-98     NEW BUSINESS:
   A. 1601 Beach Lessor Agreement Development Services
SUMMARY OF REQUEST: Staff is requesting authorization to sign a lessor
agreement to facilitate funding for the expansion of The Deck restaurant by
1601 Beach LLC at Pere Marquette Park.
The owners of 1601 Beach LLC are planning an expansion to their restaurant, the
Deck, and require funding to do so. Their loan is being guaranteed by the Small
Business Administration who requires a lessor agreement be made between
Community Shores Bank (lender) and the City of Muskegon (property owner).
This agreement outlines procedures and remedies for a potential default on the
loan.
STAFF RECOMMENDATION:          Approve the lessor agreement with Community
Shores Bank related to the lease with 1601 Beach LLC and authorize the mayor
and clerk to sign.
Motion by Commissioner Warren, second by Commissioner German, to approve
the lessor agreement with Community Shores Bank related to the lease with 1601
Beach LLC and authorize the mayor and clerk to sign.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Warren, German, and Rinsema-
           Sybenga
            Nays: None
MOTION PASSES
   B. Arena Naming Rights Sponsorship       City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the naming-rights
sponsorship with Merch Health.
As part of the current lease with the Muskegon Lumberjacks, both parties
agreed to actively sell sponsorships that would mutually benefit the City and the
team. WC Hockey has facilitated the development of the sponsorship
agreement between the City, Mercy Health, and WC Hockey. The gross
revenue associated with the sponsorship is $1.6 Million, to be paid over 15 years.
The Mercy Health name will remain on the arena for 15 years.
STAFF RECOMMENDATION:          To approve the Agreement and authorize the
mayor and clerk to sign.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Turnquist,
to approve the agreement with changes by counsel and amended exhibit C
and authorize the Mayor to sign.
ROLL VOTE: Ayes: Johnson, Gawron, Rinsema-Sybenga, and Turnquist
            Nays: German


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           Abstained: Warren
MOTION PASSES
PUBLIC COMMENT ON NON-AGENDA ITEMS: Comments were received from the
public.
ADJOURNMENT: The City Commission meeting adjourned at 9:35 p.m.


                                 Respectfully Submitted,




                                 Ann Marie Meisch, MMC – City Clerk




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