City Commission Minutes 07-28-2020

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
              JULY 28, 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, July 28, 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., and Teresa Emory, City
Manager Frank Peterson, City Attorney John Schrier, and City Clerk Ann Meisch.
Absent:     Commissioner Michael Ramsey
2020-43     CONSENT AGENDA:
   A. Approval of Minutes      City Clerk
SUMMARY OF REQUEST: To approve the minutes of the July 13, 2020 Worksession
and July 14, 2020 Regular City Commission meetings.
STAFF RECOMMENDATION:          To approve the minutes.
   B. FY2020-21 Sewer Rate Resolution Update           Finance
SUMMARY OF REQUEST: The FY 2020-21 sewer rate increase as agreed to at the
July 13, 2020 Commission Worksession is 5%, this resolution establishes the new
rate.
At the June 23, 2020 meeting the Commission approved a 3% sewer rate
increase, after further discussion at the July 13, 2020 Worksession, a 5% sewer
rate was agreed upon. This resolution establishes the new sewer rate.
STAFF RECOMMENDATION:          To adopt the FY2020-21 Sewer Rate Resolution.




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   C. 9th Street Sewer & Getty Force Main Project – Change Order #001
      Public Works
SUMMARY OF REQEUST: Change Order #001 for projects 91852 & 91853 exceeds
the staff authorization levels and requires Commission Approval.
Change Order #001 for the 9th Street Sewer & Getty Force Main Project (91852 &
91853 exceeds the staff approval level of $30,000. The change order includes
additional payment for removal of timber obstructions on the bore and jack
placement under Shoreline Drive and other minor revisions. The total Change
Order value represents an increase of $35,202.25 which has been reviewed by
staff and is recommended.
The original contract value is $1,899,971.50 The recommended change order
represents an increase of 1.8% to the project cost.
The total project budget includes up to a 6% contingency which is not
exceeded by this change order. Staff will pursue reductions in project cost on
future items to offset the increase.
AMOUNT REQUESTED:        $0 – (Covered by budgeted contingency)
AMOUNT BUDGETED:         $2,217,530.00
FUND OR ACCOUNT:         290-91852/91853
STAFF RECOMMENDATION:          Authorize staff to approve Change Order #001 for
Project 91852 & 91853.
   D. Tetratech Professional Services Agreement Public Works
SUMMARY OF REQUEST: Filtration plant is requesting approval to enter into
professional services agreement with Tetratech for MCC upgrades at Harvey
Booster Station.
The 1960’s Motor Control Center (MCC) #1 at Harvey Station requires upgrading
because of reliability issues. Upgrading soft starters for constant speed Pumps #1
and #2 to variable frequency drives (VFDs) will add reliability, efficiency and
level of service. The scope of work also includes bidding, construction
assistance, and programming. Tetra Tech is being recommended since they
were the engineer for the control system upgrades project and their familiarity
with our system. The funding will come from budgeted item for Harvey Pump
Station for $405,000. Shown as Water Filtration – WRMWA Ineligible in the 20/21
Budget.
AMOUNT REQUESTED:        $31,000      AMOUNT BUDGETED:         $405,000
FUND OR ACCOUNT:         591-60558-5400
STAFF RECOMMENDATION:         Authorize staff to enter into professional services
agreement with Tetratech for MCC up grades at Harvey Booster Station for
$31,000.

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   E. Concession Agreement – Pizza Cone Trolley           Public Works
SUMMARY OF REQUEST: Staff is asking permission to enter into a contractual
agreement with Greg Bush of “The Pizza Cone Trolley” at Pere Marquette Park.
Staff is asking permission to enter into a Concession Agreement for 2020 with
Greg Bush of “The Pizza Cone Trolley” at Pere Marquette Park. Commission from
said Concession would be $300.00 (Prorated for partial season in 2020) plus 5%
of Gross Receipts.
STAFF RECOMMENDATION:        Authorize staff to enter into a Concession
Agreement with Greg Bush of “The Pizza Cone Trolley” at Pere Marquette Park.
   F. Concession Agreement – Carlson Almonds Public Works
SUMMARY OF REQUEST: Staff is asking permission to enter into a contractual
agreement with Ron Carlson of “Carlson Almonds” at Pere Marquette Park.
Staff is asking permission to enter into a Concession Agreement for 2020 with Ron
Carlson of “Carlson Almonds” at Pere Marquette Park. Commission from said
Concession would be $300.00 (prorated for partial season in 2020) plus 5% Gross
Receipts.
STAFF RECOMMENDATION:        Authorize staff to enter into a Concession
Agreement with Ron Carlson of “Carlson Almonds” at Pere Marquette Park.
   G. Vehicle Replacement       DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase two (2) Chevy Impalas from Betten Chevrolet for police administration
vehicle replacement. The cost for the two vehicles will be $51,053.36
One vehicle was scheduled to be replaced in the current budget year and the
second, to be reforecast, after insurance payout for the first quarter. This vehicle
was involved in a “not at fault” accident and was totaled out by the insurance
company, it is being replaced immediately because of GM stopping production
of the Impala line, making them very hard to find. We were very fortunate to find
two at our local dealer as they are no longer available through MiDeal.
With the rent already collected on the wrecked vehicle ad the insurance payout
we will have money in the Equipment budget for this purchase.
AMOUNT REQEUSTED:        $51,053.36
AMOUNT BUDGETED:         $25,000 + TBD Insurance
FUND OR ACCOUNT:         661-60932
STAFF RECOMMENDATION:           Authorize staff to move forward with purchase.
   H. 2020 Byrne JAG Grant      Public Safety
SUMMARY OF REQUEST: Approval to enter into a MOU with the County of
Muskegon and the City of Muskegon Heights for the 2020 JAG Grant like

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previous years. The City of Muskegon will continue to act as fiduciary and
receive $17,866, the City of Muskegon Heights would be our sub-awardee and
receive $15,130 and the County of Muskegon would not receive funding. There is
no match requirement for this grant. The City of Muskegon’s portion of this grant
will be used in continuation of the manner in previous years where it is used for
prosecution of city ordinance cases dealing primarily with neighborhood issues.
STAFF RECOMMENDATION:            Approve the MOU for the 2020 Byrne JAG Grant.
   I. Cooperative Mutual Aid Fire Control Agreement Public Safety
SUMMARY OF REQUEST: This is to request the City of Muskegon enter into
agreement with the Michigan Department of Natural Resources (DNR), the
Cooperative Mutual Aid Fire Control Agreement as described under Public Act 7
of 1967 and Part 515 of Act 451 of 1994, as amended.
This agreement will give the City access to the Department of Defense (DoD)
“Firefighter Program Property” for local fire department’s use. In short, the
agreement gives the City access to wildland firefighting equipment at no cost.
The City currently protects 1,784 acres of public land and 1,824 acres of vacant
land with few resources to fight wildland fires. The fire department would like the
ability to apply for wildland firefighting equipment to enhance the protection of
vacant and wildland properties.
STAFF RECOMMENDATION:         Enter into agreement with the DNR’s Cooperative
Mutual Aid Fire Control Agreement.
   K. Purchase Agreement 1188 4th Street City Manager
SUMMARY OF REQUEST: City staff is seeking authorization to enter into the
purchase agreement with LeighAnn Mikesell, a City of Muskegon employee.
1188 4th Street was a regular area of concern among neighbors. In an attempt to
help mitigate the concerns, the City purchased the property and completed a
renovation. The property was listed on the MLS for $229,900; an offer was
accepted for $225,000. Staff is seeking permission to approve the purchase
agreement and complete the sale. Note that this property si part of the
scattered site brownfield project. Any difference in sales price and renovation
cost will be recovered via tax capture.
In order to comply with state and local conflict of interest concerns, Ms. Mikesell
has submitted a letter to the mayor disclosing her interest in the property and
outlining the benefits of this sale to her and to the City. The letter has been
noticed to the public along with the agenda for the commission meeting.
The sale can only be approved by a unanimous vote of all commissioners.
If approved, the minutes of the commission meeting must disclose the name of
each party involved in the contract, the terms of the contract, the nature of the
financial interest of the public servant with the conflict, and that the sale is in the

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best interests of the City.
STAFF RECOMMENDATION:            Declare that the sale is in the best interest of the
City to sell the property to Ms. Mikesell and authorize the City Manager to sign
the purchase agreement and complete the sale.
Motion by Commissioner Rinsema-Sybenga second by Commissioner Johnson,
to approve the consent agenda as presented, except item J.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Emory, Johnson, Gawron, and
           Hood
             Nays: None
MOTION PASSES
2020-44      REMOVED FROM CONSENT AGENDA:
   J. Lakeview Lofts Phase II Bridge Loan       Economic Development
SUMMARY OF REQUEST: The developers at Lakeview Lofts have run into COVID-
19 related delays and impacts from MEDC related to their contribution to the
capital stack for the second building on Western Avenue. The project has a
reservation for some crucial components and are requesting a bridge loan from
the Economic Development Fund to keep the project on schedule.
Lakeview Lofts Phase II has a capital stack that includes financing from both
PNC Bank and the Michigan Economic Development Corporation. The MEDC
has previously issued a letter of intent (LOI) that expired during the pandemic
due to PNC Bank holding up their end of the financing. Since then, MEDC has
been very slow to reissue the LOI and has held up the process to a point that the
developers are at risk of losing their reservation for commercial concrete and
foundation construction. If this occurs, the project will be pushed to next year,
and the PNC portion of the financing will be lost as a portion is Opportunity Fund
investments which must be committed by the end of the calendar year. This
would endanger the project in total, which consists of 35 apartments and a new
restaurant space. Staff recommends granting the loan as applied for, with a
maximum interest free term of 6 months. If 6 months is exceeded, retroactive
interest payments of prime plus 2% should be added to the principal, and
default may be pursued by the City of Muskegon.
AMOUNT REQUESTED:             $450,000
AMOUNT BUDGETED:              N/A, Capital Funding
FUND OR ACCOUNT:              Economic Development Revolving Fund
STAFF RECOMMENDATION:            Motion to approve Economic Development Loan
to 351 II LLC in the amount of $450,000 for a term not to exceed 180 days, and
with immediate lump sum repayment upon execution of other project financing.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,

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to approve Economic Development Loan to 351 II LLC in the amount of $450,000
for a term not to exceed 180 days, and with immediate lump sum repayment
upon execution of other project financing.
ROLL VOTE: Ayes: Rinsema-Sybenga, Emory, Johnson, Gawron, Hood, and
           German
             Nays: None
MOTION PASSES
2020-45      PUBLIC HEARINGS:
   A. Infill Housing Project Brownfield Public Hearing     Economic Development
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
which seeks to adopt an amendment to the Brownfield Plan (city’s Infill Housing
Project, 1st Amendment) On July 14, 2020 the BRA approved the Plan
amendment and further recommends that the Muskegon City Commission
approve the Plan Amendment.
City staff has prepared a brownfield plan to include 108 eligible parcels,
primarily located within the Nelson and Jackson Hill Neighborhoods, that will
facilitate the development of new affordable housing opportunities at eligible
properties. Activities include the redevelopment and rehabilitation of subject
parcels; construction of new residential units; possible demolition of the former
Froebel school in order to redevelop that property with residential units; and
public infrastructure at the former farmers market to add additional residential
units. Brownfield TIF to reimburse developer for “eligible expenses” in the
redevelopment and rehabilitation on 108 eligible parcels; after lot splits, total of
249 parcels for redevelopment. Plan Amendment eligible activities: $3,880,000
for cost of sale; $1,200,000 for demolition and abatement; $777,000 for public
infrastructure; $20,000 for Brownfield Plan Preparation and Development;
$881,550 in continency fees (15%); $6,758,550 – total eligible activities to be paid
under this Plan. End of 2023 for estimated completion date of the homes
associated with Project. After all eligible costs incurred by the various parties are
reimbursed, BRA is authorized to continue to capture local taxes for five more
years for deposit into a Local Site Remediation Revolving Fund.
STAFF RECOMMENDATION:           To close the public hearing and approve the
resolution of the Brownfield Plan Amendment for the city’s Infill Housing Project
(1st Amendment).
PUBLIC HEARING COMMENCED: No public comments received.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to close the public hearing and approve the resolution of the Brownfield Plan
Amendment for the City’s Infill Housing Project (1st Amendment).
ROLL VOTE: Ayes: Emory, Johnson, Gawron, Hood, German, and Rinsema-

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            Sybenga
            Nays: None
MOTION PASSES
2020-46            NEW BUSINESS:
   A. West Urban Properties Agreement        City Manager
SUMMARY OF REQUEST: In June, the City Commission accepted a Letter of
Intent from West Urban Properties and authorized the city manager and city
attorney to finalize a development agreement. The proposed development
agreement is attached and recommended for approval.
We are proposing the framework of a Pilot program that we would use to initially
partner with West Urban Properties to construct 100 units on vacant city lots. As
part of the program, either the City of West Urban Properties may choose to stop
home construction prior to the completion of the 100 homes. 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 authorize the City Manager to sign the
Development Agreement.
Motion by Commissioner Rinsema-Sybenga, second by Johnson, to authorize
the City Manager to sign the Development Agreement.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, German, Rinsema-Sybenga, and
           Emory
            Nays: None
MOTION PASSES
   B. Amendment to the Temporary Uses Ordinance          Planning
SUMMARY OF REQUEST: Staff initiated request to amend section 2324 of the
zoning ordinance to allow mobile food vending as a temporary use.
The Planning Commission unanimously voted in favor of the ordinance
amendment.
STAF RECOMMENDATION:            To approve the amendments to the temporary
uses zoning ordinance.


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Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve amendments to the zoning ordinance.
ROLL VOTE: Ayes: Gawron, Hood, German, Rinsema-Sybenga, Emory and
           Johnson
            Nays: None
MOTION PASSES
SECOND READING REQUIRED
   C. Mobile Food Vending Ordinance Updates City Clerk
SUMMARY OF REQUEST: Interest in operating food trucks in the City has increased
since the initial passage of the Mobile Food Vending Ordinance in 2014. Based
on community and Commission feedback, staff has identified some language
updates to more effectively regulate mobile food vendors and areas they
operate.
The City Commission held work sessions to update the mobile food vending
ordinance on February 10 and March 9. Based on the feedback received from
the community and Commission, the following changes are before you for
recommended approval:

Regulatory Ordinance
Changes to Chapter 50 include requiring proof of permission to be on private
property, compliance with fire safety and all other legal requirements (including
health department inspections and licenses), and display of city license. The
updates also include a change to allow temporary approval by the City Clerk to
allow overnight parking on public property or streets and a clarification that a
mobile food vendor cannot operate on public or private property within 1,000 of
an event or the Farmers Market during market hours. As requested, a map
showing this distance is attached. The required distance from brick and mortars
is increased to 100 ft as measured from the service window to the lot line. A
formal complaint, revocation, and appeals process was also added. A red lined
copy of all these changes is attached.

Public Areas and Streets
Allowing mobile food vending on private property in B-2, B-4, LR, WM, I-1, I-2,
MC and all Form Based Code context areas except Urban Residential and
Lakeside Residential was added and addressed through the amendment to the
temporary uses in the Zoning Ordinance.

A resolution allowing mobile food vendors on public property and streets in the
same areas is attached along with rescinding the previously identified areas.



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STAFF RECOMMENDATION:           Motion to amend and adopt Chapter 50, Article
VIII Section 50-303 through 50-305 and approve the resolution for mobile food
vending in public areas.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve and adopt Chapter 50, Article VIII Section 50-303 through 50-305 and
approve the resolution for mobile food vending in public areas.
ROLL VOTE: Ayes: Hood, German, Rinsema-Sybenga, Emory, Johnson, and
           Gawron
            Nays: None
MOTION PASSES
SECOND READING REQUIRED
ANY OTHER BUSINESS:        A brief discussion took place regarding the purchase of
gift cards. The city attorney will be reviewing documents and investigating this
issue and will provide a report to the City Commission.
Congressman John Lewis was recognized and remembered, he passed away
recently and will be remembered as a leader of the civil rights movement.
PUBLIC COMMENT:          Public comments were received.
ADJOURNMENT:       The City Commission meeting adjourned at 7:37 p.m.


                                             Respectfully Submitted,




                                             Ann Marie Meisch – MMC, City Clerk




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