City Commission Minutes 02-25-2020

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
          FEBRUARY 25, 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 25, 2020, Pastor
Tim Cross, Living Word Church, 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, 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.
Absent:     Vice Mayor Eric Hood
HONORS AND AWARDS:
   A. USS Silversides Summer Programming with Boys & Girls Club –
      Informational Presentation – Peggy Maniates, Executive Director
Peggy Maniates, Executive Director of the USS Silversides Museum presented
information on the field trip program that the organization does with the Boys &
Girls Club of Muskegon and Muskegon Public School System.
   B. Informational Presentation on expansion plans for The Deck
Michelle Harris, owner of 1601 Beach, LLC presented information to the
commission regarding their expansion plans for their restaurant, The Deck, at
Pere Marquette Park.

PUBLIC COMMENT ON AGENDA ITEMS:             No comments on agenda items.
2020-13     CONSENT AGENDA:
   A. Approval of Minutes      City Clerk
SUMMARY OF REQUEST: To approve the minutes of the February 10, 2020
Worksession meeting and the February 11, 2020 regular meeting.


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STAFF RECOMMENDATION:           To approve the minutes.
   D. Tax Incentive Policy and Guidelines Economic Development
REMOVED PER STAFF REQUEST
   E. Resolution of Intent to Bond Sanitary Sewer and Water Supply Revenue
      Bonds        Finance
SUMMARY OF REQUEST: This resolution authorizes the publication of a Notice of
Intent relating to issuing bonds for the purpose of paying all or part of the cost to
acquire, construct, furnish and equip improvements to the Sanitary Sewer and
Water Supply System.
To approve two Notices of Intent Resolutions to bond for Sanitary Sewer System
bonds for up to $15,000,000 over the next 5 years and Water Supply System
bonds for up to $20,000,000 over the next 5 years. This is the first step in the
bonding process. These bonds will be issued through the State of Michigan’s SRF
(Sewer Revolving Loan Fund) and the DWRF (Drinking Water Revolving Loan
Fund). The interest rate charged by the State is very favorable and additionally
they offer loan forgiveness for a portion of the loan. The Commission will be
asked at a later date to approve the issuance of bonds once the State has
approved our projects and we know the loan details.
STAFF RECOMMENDATION:        Approve the Notice of Intent Resolutions for
Sanitary Sewer System Revenue Bonds not to exceed $15,000,000 and Water
Supply System Revenue Bonds not to exceed $20,000,000.
   G. Pere Marquette Park – Grant Declaration           Public Works
SUMMARY OF REQUEST: The Michigan Department of Natural Resources
requires completion of a Declaration and Notice to receive reimbursement of
the grant funds that were awarded for the playground and bathhouse
improvements at Pere Marquette Park.
The completion of the Declaration and Notice is a requirement of MDNR to
reimburse the city for the grant portion ($220K) of funding that was allocated for
the playground and bathhouse improvements at Pere Marquette Park. The
declaration is intended to reiterate the grant obligations that were included in
the original agreement signed in 2017. Staff is requesting to have the Mayor sign
the declaration.
STAFF RECOMMENDATION:         Authorize the Mayor to sign the Declaration and
Notice with the Michigan DNR.
   H. Emergency Sewer Repairs          Public Works
SUMMARY OF REQUEST: During the Thanksgiving Holiday a section of sanitary
sewer collapsed under a parking lot along Henry Street near Sherman Plaza.
DPW contracted under emergency circumstances to provide temporary and
long-term solutions to repair the collapse. The invoices for these repairs exceed

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staff authorization levels and require commission approval.
On Friday, November 29th a sinkhole formed in the parking lot of Sherman
Plaza along Henry Street just north of Sherman Boulevard. After investigation
by DPW crews it was determined that the sanitary sewer line had collapsed
approximately 27 FT below the parking lot surface. The sanitary sewer line
that collapsed served as an outlet for nearly all of the Campbell Field
neighborhood. Staff notified Commission of the situation on December 2nd.
The first operation performed was a temporary pump and haul where the
sewage was pumped into trucks and hauled away for disposal. This took
place on 11/29/19 – 12/03/19 and was provided primarily by Northern A-1,
Muskegon County DPW and with our own City crews. The cost for A-1’s
services through this stage was $18,276.64 and is included as Attachment 1.
The cost for Muskegon County DPW services through this stage was
$10,248.47. All other entities that assisted were less than $5,000.
Starting on December 3rd a temporary bypass pump that had been installed
by Jackson-Merkey was put into place. The bypass pump provided a more
manageable temporary solution that included installation of a hydraulic
pump and approximately 1,500 FT of piping to temporarily bypass the
collapsed sewer. The temporary bypass pumping remained in place until the
permanent solution was in place on January 16th, 2020. The cost for Jackson-
Merkey’s services to install the temporary bypass pump was $17,814.00 and is
included as Attachment 2.
While the temporary bypass pumping was in place DPW explored several
options for a long term repair. Several options were eliminated based on the
infeasibility to complete the repairs. DPW identified a feasible repair option
and worked with the Contractor to begin the repairs. Work on the
permanent repairs was started December 30th, 2019 and concluded with a
successful installation on January 16th, 2020 at a cost of $97,478.80 and is
included as Attachment 3.
No basements were flooded and no damage to private property occurred
as a result of this sewer break. No sewage was lost or discharged into the
lakes/streams as a result of this break.
STAFF RECOMMENDATION: Authorize staff to pay the invoices to Northern A-1,
Jackson-Merkey Contractors and Midwest Trenchless Services for the
emergency sewer repairs for a total of $143,817.91.
appointments.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the consent agenda as presented, except items B, C, F, and I.
ROLL VOTE: Ayes: Rinsema-Sybenga, Emory, Johnson, Gawron, Ramsey, and
           German

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            Nays: None
MOTION PASSES
2020-14     ITEMS REMOVED FROM THE CONSENT AGENDA:
   B. NEZ Certificate – 658 Terrace Point       Planning
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from James Starr for the new construction of
a home at 658 Terrace Point. The applicant has met local and state
requirements for the issuance of the NEZ certificate.
STAFF RECOMMENDATION:             To approve the NEZ certificate at 658 Terrace
Point for a duration of 12 years.
Motion by Commissioner German, second by Commissioner Johnson, to
approve the NEZ certificate at 658 Terrace Point for a duration of 12 years.
ROLL VOTE: Ayes: Emory, Johnson, Gawron, Ramsey, German, and Rinsema-
           Sybenga
            Nays: None
MOTION PASSES
   C. NEZ Certificate – 326 Terrace Point       Planning
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Timothy Koeze for the new construction
of a home at 326 Terrace Point. The applicant has met local and state
requirements for the issuance of the NEZ certificate.
STAFF RECOMMENDATION:             To approve the NEZ certificate at 326 Terrace
Point for a duration of 12 years.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the NEZ certificate at 326 Terrace Point for a duration of 12 years.
ROLL VOTE: Ayes: Johnson, Gawron, Ramsey, German, Rinsema-Sybenga, and
           Emory
            Nays: None
MOTION PASSES
   F. Seaway Railroad Bridge Painting           Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to approve a contract
to clean and paint the railroad bridge over US-31 BR (Seaway Drive) between
Hackley Avenue and Laketon Avenue in the City of Muskegon.
Staff solicited bids to paint two railroad bridges that cross over Seaway Drive (US-
31 BR), one in the City of Muskegon and one in Norton Shores. After receiving
the initial bids (listed below), it was determined that the cost was too high to

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continue with the painting of both bridges. Staff has reached out to the lowest
bidder (Seaway Painting) to inquire about only painting the northerly bridge
within the City limits and Department of Public Works has agreed to provide
traffic control for the work. Seaway Painting has agreed to clean and paint the
bridge at the price listed below.

A complete breakdown of the original bids is attached.

The original bid totals for cleaning and painting of two bridges, including
traffic control:
   Seaway Painting: $161,771.00
   Civil Coatings: $208,800.00
   Abhe & Svoboda: $293,985.00
Bridge X02 of 61151 Cleaning and Coating + Mobilization (only):
   Seaway Painting: $68,385.00
   Civil Coatings: $125,600.00
   Abhe & Svoboda: $126,135.00


Work will include cleaning the existing structure and painting to a neutral
base color in preparation for placement of a mural in the future.
Staff recommends the contract be awarded to Seaway Painting to clean and
paint one railroad bridge over US-31 BR between Hackley Ave and Laketon Ave
in the City of Muskegon. A portion of the costs will be reimbursed through the
Community Foundation. Some fundraising efforts have already begun with
more expected to take place once a notice to proceed is issued.
STAFF RECOMMENDATION:         Award the contract to Seaway Painting for the
cleaning and coating of the railroad bridge over Seaway Drive between
Hackley Avenue and Laketon Avenue for $68,385.00.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to award the contract to Seaway Painting for the cleaning and coating of the
railroad bridge over Seaway Drive between Hackley Avenue and Laketon
Avenue for $68,385.00.
ROLL VOTE: Ayes: Gawron, Ramsey, Rinsema-Sybenga, Emory, and Johnson
            Nays: German
MOTION PASSES
   I. MANA, LLC Revolving Loan        City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the revolving loan fund

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application by MANA Sports, LLC in the amount of $30,000. The loan would be
repaid based on a 36-month amortization schedule and a 7.5% interest rate.
2020 will mark the 5th season that Mercy Health Arena has hosted professional
indoor football. As part of our collective efforts to increase attendance, the
West Michigan Ironmen are endeavoring to make significant upfront
investments in marketing services, equipment, and gameday operations. This will
include purchasing good and services in advance of the team’s opening date.
The team has developed $305,000 operating budget for the 2020 season. Much
of the income will be realized during the later portions of the season as the team
hosts home game events at Mercy Health Arena. Staff is recommending the
$30,000 loan to assist with those initial costs.
STAFF RECOMMENDATION:           Approve the agreements and authorize the
Mayor and Clerk to sign.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the agreements and authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: Ramsey, German, Rinsema-Sybenga, Emory, Johnson, and
           Gawron
            Nays: None
MOTION PASSES
ANY OTHER BUSINESS: The Commission is directing staff to consider incorporating
a cognate regarding environmental stewardship or sustainability into the policy.
PUBLIC COMMENT ON NON-AGENDA ITEMS:                    Comments were received
from the public.
2020-15     CLOSED SESSION:
   A. Lawsuit Settlement
Motion by Commissioner Rinsema-Sybenga, second by Johnson, to go into
closed session to discuss a lawsuit settlement, Antol v Dent, Straus, Bringedahl,
and Kutches.
ROLL VOTE: Ayes: Ramsey, German, Rinsema-Sybenga, Emory, Johnson, and
           Gawron
            Nays: None
MOTION PASSES
Motion by Commissioner Rinsema-Sybenga, second by Ramsey, to come out of
closed session. All in favor.
MOTION PASSES
Motion by Commissioner Rinsema-Sybenga, second by Johnson, to settle the
lawsuit, Antol v Dent, Straus, Bringedahl, and Kutches, per the attorney’s

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recommendation.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Emory, Johnson, Gawron, and
           Ramsey
           Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission meeting adjourned at 7:35 p.m.


                                        Respectfully Submitted,




                                        Ann Marie Meisch, MMC – City Clerk




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