City Commission Minutes 02-11-2020

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
          FEBRUARY 11, 2020 @ 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, February 11, 2020, Pastor
Wally Reames, Central Assembly, opened the meeting with a 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, Dan Rinsema-Sybenga, Willie German, Jr., Teresa Emory, and
Michael Ramsey, City Manager Frank Peterson, City Attorney John Schrier, and
City Clerk Ann Meisch.
HONORS AND AWARDS:
   A. Success Story – Marquette Neighborhood-Enhanced Neighborhood Grant
Lashaun Turner, Community and Neighborhood Services staff, presented
certificates to two women that painted over 100 fire hydrants in their
neighborhood as part of the Marquette Neighborhood Enhancement Grant
Program.
PUBLIC COMMENT ON AGENDA ITEMS:               Public Comments were received.
2020-09      CONSENT AGENDA:
   A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve the minutes of the January 28, 2020 regular
meeting.
STAFF RECOMMENDATION:           Approval of the minutes.
   B. Nelson Neighborhood Market Donation Proposal City Clerk
SUMMARY OF REQUEST: The Muskegon Farmers Market received a donation
proposal from the Nelson Neighborhood Association. The Association is
proposing five annual donations of $1,000 beginning April 1, 2020. They will install
and maintain a sign promoting the efforts of the Association at their own
expense. This would be treated as a Branch Level Friend of the Market

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Sponsorship for the fiver years of the commitment.
STAFF RECOMMENDATION:         To accept the proposed Friend of the Market
annual sponsorship of $1,000 each year, for five years, from the Nelson
Neighborhood Association.
   C. Mobile Food Vending Ordinance Updates City Clerk
SUMMARY OF REQUEST: There is interest to add the Lakeside Business District
and the commercial areas of the 1600 block of Glade to permit food trucks
under the current food truck ordinance.
STAFF RECOMMENDATION: To amend the resolution to add the commercial
areas of the 1600 block of Glade and the Lakeside Business District to the areas
currently permitted to host food trucks.
   D. Rescue Mission Property Transfer       Development Services
SUMMARY OF REQUEST: Staff is seeking approval of a quit claim deed to
transfer property at 1747 7th Street to the Muskegon Rescue Mission.
The Muskegon Rescue Mission would like to acquire remaining vacant land
behind the men’s shelter for expansion of the services they offer in our
community. The concept includes a community resource center, a job training
facility, and family housing. The rescue mission will be responsible to record the
deed and obtain title insurance, a property survey, environmental review, and
soils investigation. Closing costs will be split between the parties. Staff has
prepared a quit claim deed to transfer the property to the MRM and request
your approval of the property transfer. The Planning Department will continue to
work the MRM on the development of the site plan.
STAFF RECOMMENDATION:        Approve the transfer of property at 1747 7th Street
to the Muskegon Rescue Mission and authorize the mayor and clerk to sign the
quit claim deed.
   I. Arena Wall Padding       City Manager
SUMMARY OF REQUEST: Staff is seeking authorization to purchase 72 dasher
board pads at a cost of $29,284.00 from Sportsfield Specialties, and eight
storage carts at a cost of $2,497.14 from Uline. The total cost of the combined
purchase, including shipping is $31,781.14.
2020 will mark the 5th season that Mercy Health Arena has hosted professional
indoor football. When the team was initially created, the city acquired used turf
and used dasher board padding as we worked to determine if indoor football
would be sustainable in Muskegon. A new field turf was purchased three years
ago. Staff is now requesting permission to purchase new dasher board padding.
The new padding will better meet safety standards, and will also use significantly
less storage space at the arena. Storage capacity continues to be an issue
since the arena lost its storage garage during a storm four years ago. As part of

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the negotiation process of the Mercy Health naming rights agreement, staff
committed to ensuring that all of the arena’s teams benefitted from the
investment. The West Michigan Ironmen identified this as their top need. This
investment represents approximately 1.98% of the $1.6 Million sponsorship. The
ownership group accepts this as the only direct investment from those funds into
the team’s needs. The city will own the equipment and make it available to the
team at no cost.
STAFF RECOMMENDATION:          Authorize the purchase at an amount not to
exceed $37,781.14.
   K. Amendment to Wireless Communication Support Facilities Ordinance
      SECOND READING        Planning
SUMMARY OF REQUEST: Request to amend Section 2321 of the Zoning
Ordinance to allow Wireless Communication Support Facilities as a special use
permitted in the overlay district at 770 Terrace Street.
The current ordinance only allows for these types of facilities in six locations
around the City. The Commission recently amended the ordinance last year to
allow for them at Marsh Field and the Filtration Plant. This new location would be
behind the Central Fire Station and would only include a monopole for
emergency communications. The Planning Commission unanimously
recommended approval at their January 16 meeting. They also voted in favor of
the special use permit for the monopole, contingent upon approval of this
amendment by the City Commission.
STAFF RECOMMENDATION:          To approve the amendment to Section 2321 of
the Zoning Ordinance.
   L. Rezoning of 372 Morris Avenue - SECOND READING           Planning
SUMMARY OF REQUEST: Staff initiated request to rezone the property at 372
Morris Avenue from Form Based Code, Downtown to Form Based Code,
Mainstreet.
The Planning Commission unanimously recommended approval at their January
16 meeting.
STAFF RECOMMENDATION:          To approve the rezoning request for 372 Morris
Avenue.
   M. 4th of July Fireworks    City Clerk
SUMMARY OF REQUEST: Melrose Pyrotechnics is requesting approval of a
fireworks display permit for July 4, 2020 in downtown Muskegon. The fire marshall
will inspect the fireworks on the day of the event. Staff will be working with the
Lakeshore Chamber of Commerce to solicit sponsorships as well as to organize a
food truck rally. We expect this to be cost neutral to the city.
STAFF RECOMMENDATION:          To approve the fireworks contingent upon

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inspection and approval of insurance.
   N. Community Relations Committee Recommendations            City Clerk
SUMMARY OF REQUEST: To accept the resignation of Jackie Hilt from the Historic
District Commission. To accept the appointments of Steve Radtke and Timothy
Painter to the Historic District Commission and Bonnie Lipan to the Community
Development Block Grant/Citizen’s District Council.
STAFF RECOMMENDATION:      To concur with the recommendations of the
Community Relations Committee and approve the resignation and
appointments.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to accept the consent agenda as presented, except items E, F, G, H, and J.
ROLL VOTE: Ayes: Hood, Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
           and Gawron
            Nays: None
MOTION PASSES
2020-10     ITEMS REMOVED FROM CONSENT AGENDA:
   E. 1601 Beach Lease Amendment             Development Services
SUMMARY OF REQUEST: Staff is requesting approval of an amendment to the
existing lease and option agreements with 1601 Beach LLC to extend the
boundary of the land being leased for The Deck at Pere Marquette Park and to
modify the area to which 1601 Beach, LLC has an option and first right of refusal
to develop, lease, or purchase.
The owners of 1601 Beach LLC are planning an expansion to their restaurant, The
Deck. The expansion is south of the existing building and will include a patio and
additional bar space to accommodate more patrons. In order to proceed with
the expansion, the lease agreement needs to be modified to account for the
additional land associated with the expansion. The city took the opportunity to
clarify the option area with the owners and make requested adjustments.
STAFF RECOMMENDATION:        Approve the amendment to the lease and
option agreement with 1601 Beach, LLC at Pere Marquette Park and authorize
the mayor and clerk to sign.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the amendment to the lease and option agreement with 1601 Beach
LLC at Pere Marquette Park and authorize the mayor and clerk to sign.
      Motion by Commissioner Johnson, second by Commissioner German, to
      amend the motion to remove the option agreement.
      ROLL VOTE: Ayes: Johnson


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                  Nays: Ramsey, German, Rinsema-Sybenga, Emory, Gawron,
                  and Hood
      MOTION FAILS
Vote on Original Motion
ROLL VOTE: Ayes: Ramsey, German, Rinsema-Sybenga, Emory, Gawron, and
           Hood
            Nays: Johnson
MOTION PASSES
   F. Paid Beach Parking       Planning
SUMMARY OF REQUEST: Staff is requesting approval to move forward with paid
parking at the beach. The request is to purchase 20 kiosks from Flowbird and to
allow staff to draft the appropriate ordinances to initiate paid parking
requirements.
STAFF RECOMMENDATION:            To approve staff to execute the purchase order
for the 20 kiosks from Flowbird as proposed and to direct staff to draft the
appropriate ordinances to initiate paid parking requirements at the beach.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve staff to execute the purchase order for the 20 kiosks from Flowbird as
proposed and to direct staff to draft the appropriate ordinances to initiate paid
parking requirements at the beach.
      Motion by Vice Mayor Hood, second by Commissioner Rinsema-Sybenga,
      to call the question.
      ROLL VOTE: Ayes: Emory, Gawron, Hood, Ramsey, and Rinsema-Sybenga
                  Nays: Johnson and German
      MOTION PASSES
Vote on Original Motion
ROLL VOTE: Ayes: Rinsema-Sybenga, Emory, Gawron, Hood, and Ramsey
            Nays: Johnson and German
MOTION PASSES
   G. Unruly Brewing Revolving Fund Application Economic Development
SUMMARY OF REQUEST: A recommendation to the City Commission to approve
an economic development loan for Unruly Brewing.
Unruly Brewing has finished their mass production system and started brewing for
large scale kegging distribution. However, their distributors and their cash flow
projections indicate that they should also build out and begin production on a


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canning system so that they can enter the retail space to avoid some of the
negative market forces that have recently been impacting micro-breweries
across the state. They have exhausted their ability to privately finance this
portion of the project and are requesting a loan from the City’s Economic
Development Revolving Fund.
STAFF RECOMMENDATION:         To approve the terms and documents of the loan
to Unruly Brewing in the amount of $80,000 as presented.
Motion by Commissioner German, second by Commissioner Johnson, to
approve the terms and documents of the loan to Unruly Brewing in the amount
of $80,000 as presented.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Ramsey, German, and Emory
            Nays: None
            Abstain: Rinsema-Sybenga
MOTION PASSES
   H. Arena Change Order        City Manager
SUMMARY OF REQUEST: Staff is seeking approval of Changer Order 1 to the
contract with the Platinum Contracting for work being completed under Phase
2 of the arena restroom renovation project.
On December 10 2019, the City Commission approved a contract with Platinum
Contracting to remodel the existing restrooms at the Mercy Health Arena. The
original contract amount was $266,173.69. A number of issues/changes have
arisen since the project commenced. Some of the major issues include the
presence of asbestos, an immediate need for increased restroom fixtures, and
deterioration of a number of windows that now require replacement. The
additional work will raise the contract cost by $177,981.38, however, the
additional work will result in six additional women’s toilets, two additional men’s
urinals, and 14 additional “flex” toilets that can be used as either men’s or
women’s water closets, depending on event type/attendance. The previous
plan left the arena slightly short on both men’s and women’s facility counts, but
the new plan exceeds both.
STAFF RECOMMENDATION:           To approve the Agreement and authorize the
city manager to sign.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the Agreement and authorize the City Manager to sign.
ROLL VOTE: Ayes: Gawron, Hood, Ramsey, German, Rinsema-Sybenga, Emory,
           and Johnson
            Nays: None
MOTION PASSES

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   J. MDEGLE Grant Agreement          City Manager
SUMMARY OF REQUEST: The City was previously awarded a grant from MDEGLE
to address PFAS contamination at the convention center construction site. The
original $500,000 grant is being increased to $700,000 to address additional
environmental cleanup associated with a recently uncovered abandoned oil
well.
In addition to the $700,000 in grant proceeds, MDEGLE will also directly incur the
costs associated with filling and capping the oil well. The construction project
should have little-to-no out-of-pocket costs associated with these environmental
issues.
STAFF RECOMMENDATION:         Authorize the City Manager to sign the grant
agreement and incur the costs associated with the environmental cleanup as
part of the convention center construction project.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to authorize the City Manager to sign the grant agreement and incur the costs
associated with the environmental cleanup as part of the convention center
construction project.
ROLL VOTE: Ayes: Hood, Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
           and Gawron
            Nays: None
MOTION PASSES
2020-11     NEW BUSINESS:
   A. Arena Related Agreements        City Manager
SUMMARY OF REQUEST: Staff is seeking simultaneous approval of the First
Amendment to the Naming Rights and Sponsorship Agreement between the
City of Muskegon, Mercy Health Partners, and WC Hockey, and Third
Amendment to the Shared Use Agreement between the City of Muskegon and
WC Hockey.
WC Hockey and Mercy Health Partners have agreed to modify the Naming
Rights and Sponsorship Agreement to allow for more opportunities for
healthcare-related sponsorships within the arena and with various tenants of the
facility. As part of these execution of the original naming Rights and Sponsorship
Agreement, a number of changes to the Shared Use Agreement became
necessary. The amendment will accomplish the following:
   1. Formally update Exhibit A
   2. Finalize the capital investments of WC Hockey and set the repayment
      schedule.
   3. Update the City’s marketing participation with WC Hockey to account for

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     required gameday-related deliverables owed to Mercy Health as part of
     the Naming Rights and Sponsorship Agreement.
  4. Allow for the accommodation of WZZM at the arena.
STAFF RECOMMENDATION:         Approve the agreements and authorize the
Mayor and Staff to execute the agreements.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the agreements and authorize the Mayor and Staff to execute the
agreements.
ROLL VOTE: Ayes: Rinsema-Sybenga, Gawron, and Hood
           Nays: German, Emory, and Johnson
           Abstain: Ramsey
MOTION FAILS
PUBLIC COMMENT ON NON-AGENDA ITEMS: No public comments were
received.
ADJOURNMENT: The City Commission meeting adjourned at 8:17 p.m.


                                         Respectfully Submitted,




                                         Ann Marie Meisch – MMC, City Clerk




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