City Commission Minutes 06-23-2020

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
             JUNE 23, 2020 @ 5:30 P.M.
   MUSKEGON CITY COMMISSION CHAMBERS
  933 TERRACE STREET, MUSKEGON, MI 49440
              REMOTE MEETING


                                  MINUTES

The Regular Commission Meeting of the City of Muskegon was held
electronically with the Mayor, Vice Mayor and Commissioners participating via
Zoom – a remote conferencing service, Clerk staff present at 933 Terrace Street,
Muskegon, MI at 5:30 p.m., Tuesday, June 23, 2020.
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. Presentation by Public Safety Director
Police Chief, Jeffrey Lewis, presented information to the City Commission
regarding the potential purchase and use of body cameras for the Muskegon
Police Department.
2020-37     CONSENT AGENDA:
   A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve the minutes of the June 8, 2020 Worksession
and June 9, 2020 Regular City Commission meeting.
STAFF RECOMMENDATION:           To approve the minutes.
   B. Electric Assisted Bikes   Public Safety
SUMMARY OF REQUEST: Seeking City Commission authorization for the purchase
of two electric assist bikes, one carrier and assembly fees. These bikes are
intended to assist in addressing the spike in crime being seen during the COVID-
19 crisis as well as protecting the health and safety of City residents. Federal

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Grant BJA FY20 Coronavirus Emergency Supplemental Funding Program monies
will reimburse the purchase of the bikes, carrier and assembly fee, leaving the
cost for the City at zero dollars. The Coronavirus grant was awarded to
Muskegon Police Department on May 30, 2020.
AMOUNT REQUESTED:         $9,827
AMOUNT BUDGETED:          Grant Fund Reimbursement
FUND OR ACCOUNT:          101-40301-5720
STAFF RECOMMENDATION:           Acknowledge pre-approved grant funding to
purchase the two Electric Assisted Bikes (EAB) and related accessories for the
quoted amount of $9,827.
   C. MUPD Radar Message Trailer       Public Safety
SUMMARY OF REQUEST: Seeking City Commission authorization for the purchase
of a Speed Alert Radar Message Trailer to provide the community with speed
feedback, messages specific to vehicle speeds, and messages related to the
COVID-19 pandemic. This is a versatile tool for both traffic calming and public
health and safety information dissemination . Federal Grant BJA FY20
Coronavirus Emergency Supplemental Funding Program monies will reimburse
this purchase leaving the cost for the City at zero dollars. The Coronavirus grant
was awarded to Muskegon Police Department on May 30, 2020.
AMOUNT REQUESTED:         $15,585.00
AMOUNT BUDGETED:          Grant Fund Reimbursement
FUND OR ACCOUNT:          101-40301-5720
STAFF RECOMMENDATION:        To acknowledge the pre-approved grant funded
purchase of one Speed Alert Radar Message Trailer for the quoted amount of
$15,585.00
   D. Amendment to the Docks PUD Planning
SUMMARY OF REQUEST: Request to amend the Planned Unit Development at
1875 Waterworks Road; 1490 Edgewater Street; and 3400, 3460, 3474 Wilcox
Avenue, by Damfino Development, LLC.
The proposed changes in this plan are:
         •   The elimination of the boardwalk and platform in Muskegon Lake.
         •   The beach will be removed and be replaced with a buildable lot.
         •   Lot #70 (now #71) is increased in size.
         •   A new beach would be placed where lots 114-116 were previously
             located.
         •   The south wall of the channel is being moved with a reduction in

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             width from 140’ to 120’.
STAFF RECOMMENDATION:           To approve the amendments to the Planned Unit
Development as requested.
   G. FY 2020-21 Sanitation Fee Resolution Finance
SUMMARY OF REQUEST: The FY2020-21 budget calls for the Sanitation Fee to be
increased from $2.00 per month to $2.50 per month, this resolution establishes
the Sanitation Fee for FY2020-21.
Request to adopt the resolution to continue charging a sanitation fee of $1.20
per month to cover the shortfall between the sanitation charges and the millage
collected for sanitation and to increase the fee for recycling from .80 cents per
month to $1.30 per month to cover the costs of the program.
STAFF RECOMMENDATION:           To adopt the Sanitation Fee Resolution for FY2020-
21.
   H. FY 2020-21 Lead Service Line Flat Fee Resolution Finance
SUMMARY OF REQUEST: The FY2020-21 Budget calls for a Lead Service Line Flat
Fee of $5.00 per month per utility billing, this resolution establishes the fee.
The State of Michigan has mandated communities to replace lead service lines.
To offset the cost, the FY2020-21 budget calls for a Lead Service Line Flat fee of
$5.00 per month per utility billing, to be adjusted each year.
STAFF RECOMMENDATION:           To adopt the Lead Service Line Flat Fee
Resolution.
   I. Sale – 569 Oak Avenue City Manager
SUMMARY OF REQUEST: City staff is seeking authorization to sell the city-owned
home at 569 Oak Avenue to Lamont Vines of 789 Oak Avenue.
The city accepted this property from the delinquent tax sale with the intention of
renovating it. Over the past year, we have had difficulty getting to it, as our other
projects have occupied so much of our time. Mr. Vines has inquired about
purchasing this property numerous times. His intention is to renovate it. We have
agreed to a $1 sale price. Mr. Vines is going to purchase the property for $1 and
place $1,500 on escrow with the City; once he completes replacement of the
roof, we will refund/release his $1,500 deposit. He will have 90 days to comply.
STAFF RECOMMENDATION:           Authorize the City Manager to sell the property at
569 Oak as proposed.
   J. Sale – 395 Houston        City Manager
SUMMARY OF REQUEST: City staff is seeking authorization to sell the city-owned
home at 395 Houston to Meisha Brown.
The city constructed this house as part of the phase two of our infill housing

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program. Our contract to construct the home was $197,464. We also anticipated
$11,844 in sales commissions. The accepted purchase price is $196,000. This city
will also contribute $5,800 toward closing-related costs. The total amount
requiring brownfield gap financing will be approximately $7,200 - $7,500. The
3.5% gap is significantly smaller than anticipated in the Brownfield Plan, and also
significantly smaller than gap in the initial phase of the in-fill project (Midtown
Square).
STAFF RECOMMENDATION:        Authorize the City Manager to complete the sale
of 395 Houston Avenue, as described in the purchase agreement.
   L. Second Floor Remodel      City Manager
SUMMARY OF REQUEST: We have finalized our city hall construction budget at
$203,717.14 plus architectural and contingencies. Staff is seeking approval to
hire Platinum Contracting Group to manage the project.
Over the past 2 years, we have worked to reallocate space on the second floor
of city hall. The plan has been finalized and the costs are included in the 2020-21
FY Budget. The goal of the reorganization is to allow for visitors to have easier
and more convenient access to city departments. The recent developments
with COVID-19 has impacted our design. We are seeking to use Platinum
Contracting to manage the project – a number of local contractors will be
completing the work (all wok was competitively bid by Platinum on our behalf).
Much of the planning was done during COVID-19, which did limit our ability to
meet with contractors, but we are comfortable with the bids received. The goal
of using a project manager vs a general contractor is to provide the most
flexibility during construction. The building is older and has many specialty
design components (especially HVAC and electrical); we need to have the
ability to change course if we find a more efficient affordable way to complete
the work. For example, moving to new cubicles instead of offices will likely save
$50,000 to $60,000 in construction costs. Note that we are only completing work
on the space that will house Planning, CNS, Economic Development, and the
City Manager’s Office. We are also exploring an additional project that would
move the public side of the police department into the current CNS space to
provide a more inviting space for the public to visit the police administration,
community office, etc.
AMOUNT REQUESTED:        $229,588.00
AMOUNT BUDGETED:         $200,000
STAFF RECOMMENDATION:            Authorize staff to hire Platinum Contracting to
complete the renovation of the second floor of city hall at a cost not to exceed
$229,588.70, inclusive of architectural fees and contingency.
Motion by Commissioner Ramsey, second by Commissioner Rinsema-Sybenga,
approve the consent agenda as presented, except items E, F, and K.

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ROLL VOTE: Ayes: Gawron, Hood, Ramsey, German, Rinsema-Sybenga, Emory,
and Johnson
             Nays: None
MOTION PASSES
2020-37      REMOVED FROM CONSENT AGENDA:
   E. GIS Technician      Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to eliminate the
Administrative Assistant position within the Engineering Department and create a
new position for a GIS Technician.
Prior to COVID staff had met and discussed the need for a dedicated staff
member to manage and utilize the GIS (Geographic Information Systems) data
for the City. The discussion was tabled due to COVID. At the end of May, the
DPW Administrative Supervisor (Leigh Ann Archer) retired and the DPW
Administrative Assistant (Christy Cashin) was promoted leaving the
Administrative Assistant position open.
Staff is requesting permission to not fill the Administrative Assistant position and
rather to reallocate that full-time position towards creation of a new position for
a GIS Technician. The GIS Technician will work within the Engineering
Department but proved services to multiple departments within the city, namely
water/sewer and major/local streets. The work formerly performed by the
Administrative Assistant will be redistributed between the Administrative
Supervisor, the five (5) CSRII Positions at DPW, and the newly created GIS
Technician.
Based on current and projected workloads the need for a GIS Technician is
greater than the need for the Administrative Assistant.
STAFF RECOMMENDATION:          Authorize staff to eliminate the Administrative
Assistant position at DPW and create a new position for a GIS Technician.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to authorize staff to eliminate the Administrative Assistant position at DPW and
create a new position for a GIS Technician.
ROLL VOTE: Ayes: Hood, Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
and Gawron
             Nays: None
MOTION PASSES
   F. FY 2020-21 Sewer Rate Resolutions       Finance
SUMMARY OF REQUEST: The FY2020-21 budget calls for a sewer rate increase of
8%, this resolution establishes the new rate.


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In 2019 a resolution with a treatment rate for our customers that is based on a
multiplier of 1.81 times the rate the County bills the City for wastewater was
adopted. The FY2020-21 calls for the multiplier to be raised to 1.95 to cover the
cost of our aging infrastructure system capital needs and the increased cost of
treating the infiltration to our system due to the high water levels.
STAFF RECOMMENDATION:           To adopt the FY 2020-21 Sewer Rate Resolution.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to adopt the Sewer Rate Resolution at an increased rate of 3%.
ROLL VOTE: Ayes: Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
           Gawron, and Hood
            Nays: None
MOTION PASSES
   K. Legal Services     City Manager
SUMMARY OF REQUEST: Our Contract for legal services will expire this month.
Staff is seeking to enter into an extension with Parmenter Law.
Parmenter has been our legal counsel for many years. Our Service agreement
will expire June 30, 2020. The City manager asked that they provide us a
proposal to continue as our legal counsel for an additional five-year period. This
proposal is attached. Staff recommends approving an extension per the terms
outlined in the proposal. Staff fees that the best value for our representation
remains with John Schrier and his team at Parmenter Law.
STAFF RECOMMENDATION:          Accept the proposal from Parmenter law and
authorize the City Manager to enter into an extension agreement per the terms
outlined in the proposal.
Motion by Commissioner Johnson, second by Commissioner Ramsey, to accept
the proposal from Parmenter Law and authorize the City Manager to enter into
an extension agreement per the terms outlined in the proposal.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Emory, Johnson, Gawron, Hood,
           and Ramsey
            Nays: None
MOTION PASSES
2020-38            NEW BUSINESS:
   A. Transmittal of 2020-21 Proposed Budget           City Manager
SUMMARY OF REQUEST: At this time staff is transmitting to the City Commission
the proposed budget for fiscal year 2020-21 which starts July 1, 2020. Both
hardcopy and electronic versions of the budget have been distributed to
Commissioner. Additionally, the budget is available for inspection on the City’s

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website and at the City Clerk’s Office.
The proposed budget was reviewed in detail with staff at the June 8, 2020 work
session. A public hearing on the budget was held at the regular Commission
meeting on June 9, 2020. City ordinance requires that the budget be adopted
by the Commission on or before the second Commission meeting in June.
STAFF RECOMMENDATION:           Approval of the proposed budget for fiscal year
2020-21.
Motion by Vice Mayor Hood, second by Commissioner Ramsey, to approve the
proposed budget for fiscal year 2020-21, amending metered sales in sewer to
$9.1 million.
ROLL VOTE: Ayes: Rinsema-Sybenga, Emory, Johnson, Gawron, Hood, and
           Ramsey
            Nays: German
MOTION PASSES
   B. Rental Housing Pilot Program    City Manager
SUMMARY OF REQUEST: Staff is proposing a Pilot program to incentivize
privately-funded residential rental development in our core neighborhoods. The
Pilot program seeks to leverage upfront capital from residential developers in
exchange for semi-affordable rents, property tax flexibility and shared risk in the
rental market.
We are proposing the framework of a Pilot program that we would use to initially
partner with West Urban Homes to construct 50 units on vacant city lots. The
program is expected to be applicable to many different builders/developers
and many different housing types and densities. As the City tries to reverse 40+
years of neighborhood disinvestment, it is important that we acknowledge the
areas that make us less attractive for development than urban areas. Some of
those items are more in our control than others. This program focuses strictly on
developer return on investment – with the goal of the city acting as a partner to
help ensure that a major investment in rental housing neither fails to cashflow nor
causes unreasonable increases in local rents. Many times, affordability and
profitability contradict one another – this Pilot Program is designed to help attain
both.
STAFF RECOMMENDATION:        To accept the Letter of Intent from West Urban
Homes and authorize the City Manager and City Attorney to finalize the draft
Development Agreement for formal approval at the July 14 City Commission
Meeting.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
accept the Letter of Intent from West Urban Homes and authorize the City
Manager and City Attorney to finalize the draft Development Agreement for

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formal approval at the July 14 City Commission meeting.
ROLL VOTE: Ayes: Emory, Johnson, Gawron, Hood, Ramsey, and German
            Nays: None
            Absent: Rinsema-Sybenga
MOTION PASSES
PUBLIC COMMENT: Public Comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 8:35 p.m.


                                    Respectfully Submitted,




                                    Ann Marie Meisch – MMC, City Clerk




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