City Commission Minutes 08-25-2020

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
          AUGUST 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
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, August 25, 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., Michael Ramsey, and
Teresa Emory, City Manager Frank Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
PUBLIC COMMENT ON AGENDA ITEMS:             No public comments were received.
2020-55     CONSENT AGENDA:
   A. Approval of Minutes      City Clerk
SUMMARY OF REQUEST: To approve the minutes of the August 10, 2020
Worksession Meeting, August 11, 2020 Regular City Commission Meeting, and
August 12, 2020 Goal Setting Prep Meeting.
STAFF RECOMMENDATION:          To approve the minutes.
   C. Rezoning of 55 Ottawa St, 61 Ottawa St, and 65 Bank St Planning
SUMMARY OF REQUEST: Request to rezone 55 Ottawa Street, 61 Ottawa Street,
and 65 Bank Street from WM, Waterfront Marine, to I-2, General Industrial.
STAFF RECOMMENDATION:          To approve the request to rezone 55 Ottawa
Street, 61 Ottawa Street, and 64 Bank Street from WM, Waterfront Marine, to I-2,
General Industrial.
Motion by Commissioner Rinsema-Sybenga second by Vice Mayor Hood, to
approve the consent agenda as presented, except item B.
ROLL VOTE: Ayes: Gawron, Hood, Ramsey, German, Rinsema-Sybenga, Emory,

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            and Johnson
            Nays: None
MOTION PASSES
2020-56     REMOVED FROM CONSENT AGENDA:
   B. Transfer of Ownership of the Arch (Art Piece) to County of Muskegon City
      Manager
SUMMARY OF REQUEST: Staff is seeking permission to sign the attached Deed of
Gift for the Arch, a sculpture that has been housed in several locations until it
found its home at 7th and Western Avenue next to the historic Union Depot in
2016. Staff wishes to transfer ownership and responsibility to the County as it
currently sits on Muskegon County property.
STAFF RECOMMENDATION:            To authorize the City Manager to sign the Deed
of Gift to transfer ownership of the Arch to the County of Muskegon.
Motion by Commissioner Emory second by Commissioner Rinsema-Sybenga, to
authorize the City manager to sign the Deed of Gift to transfer ownership of the
Arch to the County of Muskegon.
ROLL VOTE: Ayes: None
            Nays: Hood, Ramsey, German, Rinsema-Sybenga, Emory, and
            Gawron
MOTION FAILS
2020-57     NEW BUSINESS:
   A. Resolution for Designation of City Street in Honor of Bishop Wells   Vice
      Mayor Hood
SUMMARY OF REQUEST: A request has been received to designate Valley Street
and the corner of Getty Street and Delano Avenue as Bishop Nathaniel Wells Jr.
Way to honor his legacy and leadership within the community.
STAFF RECOMMENDATION:          To approve the resolution to designate Valley
Street and the corner of Getty Street and Delano Avenue as Bishop Nathaniel
Wells, Jr. Way.
Motion by Vice Mayor Hood second by Commissioner German, to approve the
resolution and designate Valley Street and the corner of Getty Street and Delano
Avenue as Bishop Nathaniel Wells Jr. Way.
ROLL VOTE: Ayes: Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
           Gawron, and Hood
            Nays: None
MOTION PASSES

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   B. Request to Fly Mexican Flag     City Clerk
SUMMARY OF REQUEST: Latinos Working for the Future is requesting to have the
Mexican Flag flown at City Hall in celebration of Mexican Independence Day
which is September 16, 2020. They are requesting that the flag be raised on
September 12, 2020 during a flag raising ceremony and taken down on
September 20, 2020. They are also requesting to host a mini event to raise the
flag as well as having a drive by community children’s PPE giveaway.
STAFF RECOMMENDATION:         To grant the request of Latinos Working for the
Future and allow them to host a mini flag raising event on September 12, 2020 in
conjunction with a drive-by community children’s PPE giveaway and to allow
the Mexican Flag to be flown September 12, 2020 through September 20, 2020
at City Hall.
Motion by Commissioner Rinsema-Sybenga second by Vice Mayor Hood, to
grant the request of Latinos Working for the Future and allow them to host a mini
flag raising event on September 12, 2020 in conjunction with a drive-by
community children’s PPE giveaway and to allow the Mexican Flag to be flown
September 12, 2020 through September 20, 2020 at City Hall.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Emory, Johnson, Gawron, Hood,
           and Ramsey
            Nays: None
MOTION PASSES
   C. First Responder Hazard Pay Premium Program         Finance
SUMMARY OF REQUEST: To authorize staff to apply for reimbursement under the
State of Michigan’s First Responder Hazard Pay Premium Program.
As part of the State of Michigan’s CARES Act the First Responder Hazard Pay
Premium Program will reimburse employers for hazard pay premiums paid to
eligible employees who have performed hazardous duty or work involving
physical hardship related to COVID 19 up to $1,000 per employee.
During the months of April and May the City paid all sworn police, fire personnel,
and employees working a full 40 hours who were deemed essential a flat $100
per week. Additionally, all employees that were expected to directly interact in
a face-to-face capacity with residents of handle mail or cash from outside of
City hall were paid an additional $2.50 per hour for all hours worked. Under the
State CARES Act Public Safety and Public Health Payroll Reimbursement
Program the City was able to apply for reimbursement of all Police and Fire
wages and payroll expenditures for April and May. So we expected to be
reimbursed all the essential duty and hazard duty pay and payroll costs paid to
Police and Fire along with their regular pay and payroll costs.
Fire personnel have spoken to the State and confirmed that they would also be

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eligible to receive an additional $1,000 per employee that the city could be
reimbursed for. The Finance office has confirmed this. The reimbursement would
only be for up to $1,000 per employee and would not reimburse the City for their
payroll costs. We have 92 First Responders and have estimated the payroll costs
to be $18,581.
The application will be submitted as payment is pending approval of funds
availability. The State has earmarked $100,000,000 for this program.
AMOUNT REQUESTED: $18,581
STAFF RECOMMENDATION:         To authorize staff to apply for the State of
Michigan’s CARES Act First Responder Hazard Pay Premium Program.
Motion by Commissioner Johnson second by Commissioner Rinsema-Sybenga,
to authorize staff to apply for the State of Michigan’s CARES Act First Responder
Hazard Pay Premium Program.
ROLL VOTE: Ayes: Rinsema-Sybenga, Emory, Johnson, Gawron, Hood, Ramsey,
           and German
             Nays: None
MOTION PASSES
   D. Consumers Energy Easements Development Services
SUMMARY OF REQUEST: Staff is seeking direction for two lease agreements to
provide Consumers Energy permanent access to trim, cut down, and control
any trees, brush, and other vegetation. The easements also allow the company
to maintain, inspect, survey, replace, reconstruct, improve, remove, replace,
change the size, enlarge, and protect their electric facilities adjacent to the
easement. Please note that Consumers Energy will not use the easements to
construct additional facilities.
As compensation of the easements, Consumers Energy agrees to pay the city
$11,800 based on property values in the area. City staff propose to use the funds
to plant trees throughout the urban core of the city with many targeted for the
downtown area. Please note that the requirements for each easement are
different based on how close the Consumer’s line is to the City of Muskegon
property line.
For the 0005-00 parcel, the Consumers line is 70’ from the city’s property line, and
a 10’ wide easement is needed to remove “danger trees” only. Danger trees
are trees that could exceed 35’ in height and fall into the line.
For the 0003-00 parcel, the Consumers line is 35’ from the city’s property line. This
requires a 5’ easement to remove all vegetation, and a 40’ wide easement to
remove “danger trees.”
FUND OR ACCOUNT:          Tree Replacement

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STAFF RECOMMENDATION:       To approve or deny the two easement
agreements with Consumers Energy and authorize the mayor and clerk to sign.
Motion by Commissioner Johnson second by Commissioner Rinsema-Sybenga,
to approve the two easement agreements with Consumers Energy and authorize
the mayor and clerk to sign.
ROLL VOTE: Ayes: Emory, Johnson, Gawron, Hood, Ramsey, German, and
           Rinsema-Sybenga
            Nays: None
MOTION PASSES
   E. Social District Plan and Map Approval            Economic Development
SUMMARY OF REQUEST: With state enabling legislation for Social Districts, city
staff is proposing a Downtown Muskegon Social District for approval of a plan
and district map and filling them with the Michigan Liquor Control Commission.
Public Act 124 of 2020 allows cities to create Social Districts and within them
Common Areas where alcoholic beverages from participating licensed
establishments can be possessed and consumed outside of the establishments’
service areas. A Downtown Muskegon Social District was presented at the
August City Commission work session designed to create fun and new energy in
the downtown, while assisting participating restaurants and bars to expand
business during COVID-19 restrictions. The district would be managed by the
city’s downtown manager in conjunction with a number of city departments.
The plan addresses a year-round, seven-day-a-week Social District in terms of
marked boundaries, hours of operation, enforcement, security, design of a
district cup, sanitation, marketing and entertainment. Since the work session, the
draft plan and accompanying map have been changed to eliminate the Social
District and Common Area north of Shoreline Drive and at this time the ability to
carry district alcoholic beverages across Shoreline Drive. The other change was
an expansion of the financing options to include fees per cup, annual
establishment participation fees, daily patron wristband fees and potential
district sponsorship revenues. Staff has brought together a working group of
participating establishment representatives to come to a consensus on a
funding model that would pay for all of the city’s cost in implementing and
managing the district. A resolution supporting the Downtown Muskegon Social
District plan and accompanying district map is attached. If approved, the
resolution, plan and map will be sent the Michigan Liquor Control Commission,
operational details set and implementation begun. Participating licensee permit
recommendation approvals are being requested in a separate agenda item.
STAFF RECOMMENDATION:          To approve the Downtown Muskegon Social
District and Map and direct the Clerk and Mayor to file it with the Michigan
Liquor Control Commission and authorize staff to implement.

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Motion by Commissioner Rinsema-Sybenga second by Commissioner Emory, to
approve the Downtown Muskegon Social District and Map and direct the clerk
and mayor to file it with the Michigan Liquor Control Commission and authorize
staff to implement.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Ramsey, German, Rinsema-
           Sybenga, and Emory
             Nays: None
MOTION PASSES
   F. Social District Permit Recommendations            Economic Development
SUMMARY OF REQUEST: The City Commission must recommend approval of the
Michigan Liquor Control Commission permits of participating licensed
establishments in the Downtown Muskegon Social District.
With the establishment of the Downtown Muskegon Social District, participating
licensed establishments must receive a Social District permit from the Michigan
Liquor Control Commission. The MLCC must first receive a recommendation for
approval from the City Commission before granting the permits. The attached
resolution includes the names of the establishments initially seeking a Social
District permit from the state and seeking City Commission recommended
approval. The Social District plan identifies 22 potential participating licensees
within the district. Beyond this initial group of permit applicants, other licensed
establishments may file a Social District permit application in the future.
STAFF RECOMMENDATION:         To approve the resolution recommending
Michigan Liquor Control Commission approval of Social District permits in the
Downtown Muskegon Social District and to direct the City Clerk to certify the
City Commission action with the MLCC.
Motion by Vice Mayor Hood second by Commissioner Johnson, to approve the
resolution recommending Michigan Liquor Control Commission approval of
Social District permits in the Downtown Muskegon Social District and to direct the
City Clerk to certify the City Commission action with the MLCC.
ROLL VOTE: Ayes: Gawron, Hood, Ramsey, German, Rinsema-Sybenga, Emory,
           and Johnson
             Nays: None
MOTION PASSES
   G. EDA (Economic Development Administration) Public Works and Economic
      Adjustment Assistance Program Grant    Economic Development
SUMMARY OF REQUEST: Staff is requesting authorization to apply for a grant
through the Economic Development Administration (EDA) Public Works &
Economic Adjustment Assistance Program, with a commitment of matching

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funds, to assist in making necessary infrastructure improvements at the former
state-owned West Shoreline Correctional Facility, currently within the Port City
Industrial Park, located at 2725 Olthoff Drive.
Staff is seeking to apply for a $3,500,000 grant through the EDA Public Works and
Economic Adjustment Assistance Program and commit $700,000 in match
towards a total $4.2M project.
The City took ownership of the 61.96 acre project site on 6/25/19 through the
assistance of a $4 million state grant in 2018. Due care, demolition and site
preparation activities have been completed and approximately $700,000 of the
original grant remains unspent. The EDA grant would result in infrastructure
improvements, including water, sewer and transportation network upgrades to
support future industrial and commercial redevelopment onsite as well as within
the Industrial Park complex. Specific improvements include: up-sizing sanitary
sewer capacity of the Olthoff & DeBaker Gravity Sanitary Sewer line & Sherman
Boulevard Gravity Sanitary Sewer line; extending sanitary & water lateral stub
outs from Olthoff into project site; as well as undergoing pavement
reconstruction of a portion of Keating Avenue which is the last piece of original
road in the Industrial Park.
Total estimated project cost is $4,214,000. Applicant match shared requirement
is 20% and EDA expects to fund at least 80% of project amount. Matching funds
derived from remaining balance of 2018 state grant; approximately $700,000.
Estimated engineering costs of $451,500 is a grant-eligible expense. The City is
well positioned to leverage this redevelopment opportunity as it will make our
region more competitive in attracting new investment and job creation given
the site’s proximity to water/sewer infrastructure, access to a variety of
transportation networks and available workforce.
AMOUNT REQUESTED:        $700,000
FUND OR ACCOUNT:         482-91908, State Grants
STAFF RECOMMENDATION:         Approve the resolution of support and authorize
the Mayor and Clerk to sign and commit to funding the required match if the
project is selected.
Motion by Commissioner Rinsema-Sybenga second by Vice Mayor Hood, to
approve the resolution of support and authorize the Mayor and Clerk to sign and
commit to funding the required match if the project is sealed.
ROLL VOTE: Ayes: Hood, Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
           and Gawron
            Nays: None
MOTION PASSES



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   H. Amendment to the Zoning Ordinance – Marihuana Facilities Overlay
      District Expansion Planning
SUMMARY OF REQUEST: Staff initiated request to amend Section 2331 of the
zoning ordinance to expand the marihuana facilities overlay district to several
other locations.
STAFF RECOMMENDATION:         To approve the request to amend Section 2331
of the zoning ordinance to expand the marihuana facilities overly district as
presented.
Motion by Commissioner Rinsema-Sybenga second by Commissioner German,
to approve the request to amend Section 2331 of the zoning ordinance to
expand the marihuana facilities overlay district not as presented but minus
District 1, 2, 3 and 6 – District 4 and 5 for approval.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Gawron, and Hood
            Nays: Ramsey, Emory, and Johnson
MOTION PASSES
PUBLIC COMMENT ON NON-AGENDA ITEMS: No public comments were
received.
2020-58    CLOSED SESSION:
   Attorney/Client Confidential Communication
Motion by Commissioner Rinsema-Sybenga second by Commissioner German,
to go into closed session to discuss Attorney/Client Confidential Communication.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Emory, Johnson, Gawron, Hood,
           and Ramsey
            Nays: None
MOTION PASSES


Motion by Commissioner Johnson second by Commissioner Rinsema-Sybenga,
to come out of closed session.
ROLL VOTE: Ayes: Rinsema-Sybenga, Emory, Johnson, Gawron, Hood, Ramsey,
           and German
            Nays: None
MOTION PASSES
Motion by Commissioner Johnson second by Commissioner Rinsema-Sybenga,
to waive confidentiality and release all contents of the Parmenter Law report to
the public.


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ROLL VOTE: Ayes: Emory, Johnson, Gawron, Hood, Ramsey, German, and
           Rinsema-Sybenga
            Nays: None
MOTION PASSES
ANY OTHER BUSINESS:     Commissioner Johnson suggested trying to have the
next general session meeting in person at Hackley Park or at the Mercy Health
Arena, maintaining social distancing, etc., if it can be worked out logistically.
ADJOURNMENT: The City Commission meeting adjourned at 10:00 p.m.


                                      Respectfully Submitted,




                                      Ann Marie Meisch, MMC – City Clerk




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