City Commission Minutes 03-09-2021

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
            MARCH 9, 2021 @ 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, March 9, 2021.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present:     Mayor Stephen J. Gawron (Muskegon, MI), Vice Mayor Eric Hood
(Muskegon, MI), Commissioners Ken Johnson (Muskegon, MI), Dan Rinsema-
Sybenga (Muskegon, MI), Willie German, Jr. (Muskegon, MI), Teresa Emory
(Muskegon, MI), and Michael Ramsey (Muskegon, MI), City Manager Frank
Peterson, City Attorney John Schrier, and City Clerk Ann Meisch.
HONORS/AWARDS/PRESENTATIONS:
      Public Art Update Presentation         Judy Hayner
Judy Hayner provided information on behalf of the Muskegon City Public Art
Initiative. She gave update on art projects to the Commission and anyone
watching.
PUBLIC COMMENT ON AN AGENDA ITEM:            No public comments were received.
2021-22     CONSENT AGENDA:
   A. Approval of Minutes      City Clerk
SUMMARY OF REQUEST: To approve the minutes of the February 23, 2021
Regular Meeting.
STAFF RECOMMENDATION:          To approve the minutes.
   B. Special Event Policy Update      City Clerk
SUMMARY OF REQUEST: Special Event applications have transitioned to the City
Clerk’s Office. Staff reviewed current policies and is suggesting some
updates/changes. Along with a review of the current policy, staff reviewed fees
and made several recommendations as well as the adoption of a policy that
allows any event requesting a waiver of fees to fill out a form to be presented to
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the City Commission for consideration.
Over many years, Parties in the Park has had all fees waived for use of the park
and use of city equipment. Parties in the Park did raise funds and added a new
stage built at Hackley Park. This has been an ongoing practice for many years.
We are looking for acknowledgment from City Commissioners to continue this
practice and/or make any necessary changes.
Staff held several meetings to discuss proposed fees and changes to the policy.
Many of the proposed changes provide further clarification for staff and
applicants. Some of the major changes include paid parking at the beach, the
elimination of deposits, uniformity for insurance requirements, and increasing the
fee for the use of Hackley Park.
STAFF RECOMMENDATION:      To adopt the amended policy, fees, and waiver
form and acknowledge the waiver of city fees for Parties in the Park.
   D. Downtown Muskegon Social District Full Launch      Economic Development
SUMMARY OF REQUEST: Requesting authorization to have the Muskegon City
Clerks Office sell biodegradable Social District cups and have the city cover the
2021 social district expenses.
The City Commission approved the Downtown Muskegon Social District in
August. It has been operating 11 a.m. – 11 p.m., seven days a week in a limited
area since mid-September. The DMSD needs to be expanded to its full area and
open to all 22 potential establishments. Please see an accompanying memo
outlining the full launch of the DMSD slated for mid-April.
AMOUNT REQUESTED:        Up to $25,000       AMOUNT BUDGETED:        None
FUND OR ACCOUNT:       Potential no-interest loan from the Downtown Muskegon
Business Improvement District to be paid back by cup sales.
STAFF RECOMMENDATION:          To authorize the Muskegon City Clerk’s Office to
sell 16-ounce Downtown Muskegon Social District Cups for 35 cents apiece to
cover city costs and authorize up to $25,000 to launch and operate the DMSD
through the end of 2021.
   E. Small Retailer Assistance Program      Economic Development
SUMMARY OF REQUEST: Staff is seeking approval of modifications to the City’s
Small Retailer Assistance Program. The Small Retailer Assistance Program was
established to aid in the creation of more small retail businesses and to aid
existing small retail businesses negatively impacted by COVID-19. Current grant
incentives include: Rental Assistance Grant, Retail Renovation Grant, CV Rental
Assistance Grant, and CV Capital Grant.

Rental Assistance Grant (new business) – intended to help small retailers open
new storefronts in traditional brick and mortar buildings. Grantees reimbursed

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50% of monthly rent, up to $5,000. Changes include: Existing micro-retailers with
under 300 sf of space will be eligible for assistance when they move to their own
space with their own street frontage.

Retail Renovation Grant (new or existing business) – intended to assist in creation
of more rentable retail spaces. Grantees reimbursed 50% (up to 50% (up to
$5,000) of renovation costs associated with upgrading defunct space into usable
retail suite. No changes.

CV Rental Assistance Grant (existing business) – intended to help existing small
retailers continue operations in storefronts located in traditional brick and mortar
buildings. Grantees reimbursed 75% of their monthly rent, up to $5,000. Changes
include: Change to “CV Assistance Grant” / grantees to be reimbursed 75% of
their business operating losses, rather than monthly rent, up to $5,000/remove
eligibility requirement that applicant “employ no more than five people”/permit
“retailers or restaurants who are independent and locally-owned” to now be
eligible applicants/remove requirement to offer retail goods for sale/remove
requirement to possess an executed rental agreement/revise location
requirement that applicant be in a traditional brick and mortar building, rather
than a “retail suite”, which is visible from the street/allow applicant to
demonstrate “significant” business loss rather proving “greater than 50%”
business loss & remove reference to comparable “prior months/years” / permit
business to be reimbursed 75% of business operating losses upon providing
evidence of business operating losses.

CV Capital Grant (existing business) – intended to help existing small retailers
continue operations in storefronts located in traditional brick and mortar
buildings. Grantees reimbursed 75% of their expenses up to a total of $5,000 for
renovations associated with modifying storefront in response to COVID-19
distancing guidelines and reduced capacity requirements. No changes.

STAFF RECOMMENDATION:           Approve staff modifications to the City’s Small
Retailer Assistance Program.

   F. Updated Deficit Elimination Plan – Sewer Fund        Finance
SUMMARY OF REQUEST: To approve the Deficit Elimination plan and resolution
for the Sewer Fund and direct staff to submit plan to the State of Michigan.
On June 30, 2020 the Sewer Fund had a $3,595,965 deficit unrestricted net
position. Act 275 of Public Acts of 1980 requires the City to formulate a deficit
elimination plan and submit it to the Michigan Department of Treasury. The
deficit elimination plan and resolution for the Sewer Fund are attached.
STAFF RECOMMENDATION:           To approve the deficit elimination resolution for

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the Sewer Fund.
   G. Campbell Field Playground         Public Works
SUMMARY OF REQUEST: Staff is seeking authorization to approve the purchase
of several items related to the construction of a new playground at Campbell
Field.
The City was unsuccessful in our grant application to MDNR to fund
improvements at Campbell Field, however staff is still moving forward on several
of the identified improvements that were previously shared for public comment
and are attached. This work is being completed utilizing the city matching funds
that were generated from the PILOT Agreement with Royale Glen Apartments
($156K).
To that end, City Staff is requesting permission to move forward with the
playground replacement at Campbell Field including contracting for the
construction of the playground pad, purchase of playground surfacing tiles and
contracting installation services for a new playground.
The equipment for the new playground was purchased through the Beidler Street
Sanitary Sewer Project (590/591-91854) and originally planned to be placed at
the Beidler Street tot-lot as a replacement for the equipment that was removed
there to facilitate the sewer installation. Through staff discussion and
coordination with the Campbell Field neighborhood we are now proposing to
install the new playground structure at Campbell Field and develop an alternate
plan for the Beidler Street tot-lot at a later date.
First, staff proposes to engage Wing Contracting, which is currently contracted
as the low bidder to install the concrete pad for the Aamodt Park Playground, to
install the concrete at Campbell Field. The cost of this is TBD but estimated at
approximately $8K and would be handled as a change order under the current
agreement for Aamodt Park. This change order would be over the % thresholds
available for approval at the staff level.
Second, staff recommends purchase of playground surfacing tiles along with
professional playground installation services from Sinclair Recreation. They are
the city’s preferred vendor for playground services and the suppliers of the
already purchased playground equipment. The cost for these items is
$35,752.40.
Staff will return with additional requests at a later date to utilize more of the
remaining funds towards completion of items at Campbell Field.
AMOUNT REQUESTED:          $43,752.40 AMOUNT BUDGETED:             $156,000
FUND OR ACCOUNT:           404
STAFF RECOMMENDATION:          Authorize staff to approve a change order with
Wing Construction to provide the concrete work for the new playground pad at

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a cost not to exceed $8K and authorize staff to contract with Sinclair Recreation
for the purchase of playground surfacing tiles and playground installation
services in the amount of $35,752.40
   H. Beidler Change Order #004        Public Works
SUMMARY OF REQUEST: Staff is seeking authorization to approve Change Order
#004 to the sewer project work on Beidler Street in the Campbell Field
Neighborhood.
Final quantity measurements have been completed for the water and sewer
work conducted throughout the Campbell Field Neighborhood on Crowley,
Beidler, Young, and Pulaski Streets and the project has been recommended for
final acceptance and closeout.
Change Order #004 represents an increase to the Contract value of $9,847.24.
Combined with the previously approved Change Orders #001-#003 the total
change order value for the project stands at $38,077.86 on an original contract
value of $5,465,514.75 for a net final increase of 0.7%. The approved project
budgets contained a contingency of ~6% so this final balancing does not
exceed the budgeted contingency. Future reforecasts will reduce the total
budgeted cost of this project.
AMOUNT REQUESTED:         $5,503,592.61    AMOUNT BUDGETED: $5,793,445.64
                                                           ($5,465,514.75 + 6%)
FUND OR ACCOUNT:          590/591-91854
STAFF RECOMMENDATION:           Authorize staff to approve Change Order #004 to
the Westwood Sewer Project with Kamminga and Roodvoets in the amount of
$9,847.24 for a total net change on the project of $38,077.86.
   I. Harvey Pump Station Electrical Upgrades        Public Works – Filtration
SUMMARY OF REQUEST: Staff is requesting authorization to contract with Wirtz
Electric & Communications for electrical upgrades at the Harvey Pump Station.
The Harvey Pump Station is critical to the distribution of drinking water to the City
of Muskegon and its wholesale customers. The electrical power for the entire
facility is distributed through the original motor control center (MCC) installed in
1964. The MCC is well beyond its expected service life of 40 years, and it was
recommended to staff that it be replace for reasons of reliability and safety. As
part of this project, the soft starters in the MCC that control the two constant
speed water pumps will be upgraded to variable frequency drives (VFDs) to
improve both reliability and efficiency.
Staff is also recommending the replacement of the existing armored cable that
feeds the MCC. Similar cable at the pump station experienced a seal failure that
resulted in water entering electrical equipment, and this project provides an
ideal opportunity to prevent a similar occurrence.

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The base bid for this scope of work includes the cost to run new conduit between
the MCC and the pump motors. However, this cost will be deducted from the
total cost listed below if an inspection of the original conduit shows it to be
reusable for this project.
Proposals were solicited from five electrical contractors for the purchase, install,
and startup of all equipment. Three proposals were received. Staff recommends
this project be awarded to the lowest bidder, Wirtz Electric & Communications.
This project was budgeted as part of the ongoing upgrades to the Harvey Pump
Station.
                                       Base Bid      Feed Cable         Total
Wirtz Electric & Communications        289,033.00 6,233.00              295,266.00
Parkway Electric                       300,645.00 7,945.00              308,590.00
Newkirk Electric Associates            328,560.00 10,985.00             339,545.00
AMOUNT REQUESTED:         $295,266     AMOUNT BUDGETED:           $1,040,000.00
FUND OR ACCOUNT:          591-92007-5346
STAFF RECOMMENDATION:        Authorize staff to contract with Wirtz Electric &
Communications for $295,266.00 to perform electrical upgrades at the Harvey
Pump Station.
   J. Asphalt Paver Purchase DPW/Equipment Division
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one Asphalt Paver from Michigan Cat, the authorized, Mi-Deal
contract holder. We will be re-forecasting the Equipment budget for the third
quarter to reflect deleting two truck purchase and then allocating an additional
$7,000.00 to cover the purchase of this Paver.
The Equipment Division and Highway Department have been trading services
with another local Community for the use of their paver as needed. This machine
is aging rapidly and will soon be obsolete with nowhere to buy repair parts. That
is why this purchase is imperative to our paving projects to maintain the quality
of service our citizens have come to expect. This machine will also allow the City
to take on many more projects to ease the burden of always needing to hire a
contractor for slightly larger paving projects in our Parks and Alleyways.
AMOUNT REQUESTED:         $90,335.00         AMOUNT BUDGETED:           $90,335.00
FUND OR ACCOUNT:          661
STAFF RECOMMENDATION:        Authorize staff to move forward with the purchase
of LeeBoy paver through Michigan CAT in the amount of $90,335.00 under the
Mi-Deal Contract.
   K. MDOT Agreement for Peck Street         Public Works


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SUMMARY OF REQUEST: Staff is requesting approval of the contract with MDOT
for the reconstruction of Peck Street from Merrill Avenue north to Apple Avenue
and approval of the resolution authorizing the Mayor and Clerk to sign the
contract.
This is the standard contract governing projects that are constructed using
federal funds through MDOT. The estimated cost for the project construction is
$843,138.82 with $381,810 of that being federal surface transportation funding
and the remainder will be accounted for in the City’s 21-22 Budget for Major
Streets (~$300K / 202-92002) and Water (~$250K / 591-92002) funds.
Work on this portion of Peck Street is planned to commence after the 4th of July
and continue into September, hence the budgeting for these projects will fall in
next fiscal year.
STAFF RECOMMENDATION:        Approve the attached contract and resolution
and authorize the mayor and clerk to sign both.
   L. Emergency Vactor Repair          Public Works
SUMMARY OF REQUEST: Staff is seeking authorization to repair the sewer vactor
truck. The sewer vactor is in need of substantial repairs above the normal
authorization limits. Staff approved the repairs in accordance with the
purchasing policy emergency guidelines to minimize the down time for this
critical piece of equipment and is requesting permission after the fact.
In accordance with the purchasing policy staff solicited three bids for this work
and is recommending award of the work to the low bidder St. John Truck and
Trailer in the amount of $24,680.50. Bids were received as follows:
   •   St. Johns Truck and Trailer - $24,680.50
   •   Jack Doheny Company - $36,982.86
   •   AIS Equipment – Declined to Bid
AMOUNT REQUESTED:         $24,680.50 AMOUNT BUDGETED:           $24,680.50
FUND OR ACCOUNT:          661
STAFF RECOMMENDATION:           Authorize staff to approve the repairs to the sewer
vactor at St. Johns Truck and Trailer in the amount of $24,680.50.
   M. Street Sweeping Contract Extension Public Works
SUMMARY OF REQUEST: To exercise the option of a 1-year contractual
extension as outlined in the previous 3-year contract with TRI-US SERVICES, INC.,
to provide Street Sweeping Services for 2021.
The Department of Public Works is requesting permission to enter into a 1-year
contractual extension agreement with TRI-US SERVICES, INC., which is provided
for in the 2018-2020 Street Sweeping Contract. TRI-US SERVICES has held their


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previous 3-year contract price of $269,349.00 for 2021.
AMOUNT REQUESTED:        $269,349.00        AMOUNT BUDGETED:          $269,349.00
FUND OR ACCOUNT:         101-60523/204-60440
STAFF RECOMMENDATION:       Authorize staff to enter into a Contractual Street
Sweeping Agreement with TRI-US SERVICES, INC.
   N. Lakeside Corridor Improvement Authority Resolution       Economic
      Development
SUMMARY OF REQUEST: The Lakeside BID Board has petitioned the City to allow
for the creation of a Corridor Improvement Authority and corresponding Tax
Increment Financing Plan. A public hearing to take comments concerning the
creation of the Authority and its boundaries has taken place, allowing for the
creation of the Corridor Improvement Authority by the City Commission through
adopting the attached resolution.
The Lakeside Business Improvement District Board has requested a Corridor
Improvement Authority to generate TIF revenues and eventually phase out their
Business Improvement District special assessment. On October 27th the City
Commission held a required public hearing to review submitted comments on
the establishment of the Authority and its boundaries. Per Public Act 280 of 2005,
not less than 60 days must pass after the public hearing in order for taxing
authorities to be notified and give any feedback on the creation of the CIA. This
has taken place, and now the Commission may establish the Lakeside Corridor
Improvement Authority by adoption of the provided resolution. The next steps
will involve appointing the current Lakeside BID Board as the CIA Board
members after the resolution has been adopted and sent to the Michigan
Secretary of State. Once appointed, the CIA Board can adopt and submit a Tax
Increment Financing Plan to the state and begin TIF capture.
STAFF RECOMMENDATION:          To adopt the resolution establishing the Lakeside
Corridor Improvement Authority as presented, and to direct staff to submit the
adopted resolution to the Michigan Secretary of State.
   O. Port City Industrial Park Expansion RFP       Economic Development
SUMMARY OF REQUEST: The site preparation work at the former Shoreline
Correctional Facility is complete, and though we still await the outcome of a
recent EDA grant application for some utility capacity improvements the time is
right to seek submissions for potential end-users and/or builders. The attached
RFP seeks one or more developers to partner with the city by developing the 63
acre site.
Over the past year, the Economic Development department has submitted the
site for consideration in 5 confidential MEDC RFI’s all of which were either
national or North America wide. We did achieve third in a statewide agribusiness


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attraction project as well. However, one “big fish” end-user attraction is fairly
rare and highly competitive, and now that we have seen a slow down in these
types of requests from MEDC during the pandemic the department would like to
try casting a wider net for potential development. The site should garner
significant interest, and this document contains the necessary details for
manufacturers and builders to submit potential construction projects. The RFP is
authored to accommodate multiple potential users, considering the size of the
development area. This RFP would be pushed by press release, social media,
trade publications/professional associations, and by working with our county
Economic Development partner GMED.
STAFF RECOMMENDATION:            A motion to endorse the Request for Proposals for
the Port City Industrial Park Expansion as presented.
   P. Acquisition of 1259 Sanford from Muskegon County Landbank Economic
      Development
SUMMARY OF REQUEST: Now that we have finalized the funding sources and
passed HUD’s administrative review for the EACH program, we are ready to
construct owner occupied homes for low-mod families. We own two of the three
lots for the development, and must acquire this last lot from the Muskegon
County Land Bank in order to execute the development agreement and begin
construction.
The City’s development of owner-occupied home construction in partnership
with Community enCompass has cleared administrative review by HUD, and we
are ready to order homes and commence construction. Now that the
development is assured, we need to acquire the only lot not currently under site
control by the city to ensure that we can utilize the Brownfield TIF. Tim Burgess
with the County Land Bank is very supportive of the program and our application
is pending per Commission approval. The offered price on the lot we are
recommending is one dollar at this time, though it is up to the County Treasurer
to accept the price and this is not guaranteed.
STAFF RECOMMENDATION:       A motion to approve the acquisition of 1259
Sanford from the Muskegon County Land for the development of a single family
home, pending Land Bank approval.
   Q. Marina Parking Ordinance/Increase Launch Ramp Fines            Public
      Safety – REMOVED PER STAFF REQUEST
   R. Muskegon Central Dispatch Lease Agreement & Exhibits           Public
      Safety
SUMMARY OF REQUEST: Review and approve the attached MCD lease
agreement (amended). As detailed in the attached lease agreement, attached
exhibits and lease space necessary for use and maintenance of the newly
expanded/remodeled dispatch facility.

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Attached is the First Amendment to the Lease between the City and Central
Dispatch. There are two exhibits. Exhibit A is the site plan/description of the
leased space. Exhibit B is the financials.
STAFF RECOMMENDATION:       Approval of the amendments to the lease
agreement between the City of Muskegon and Muskegon Central Dispatch.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the consent agenda as presented, minus item C.
ROLL VOTE: Ayes: Rinsema-Sybenga, Emory, Johnson, Gawron, Hood, Ramsey,
           and German
             Nays: None
MOTION PASSES
2021-23      REMOVED FROM CONSENT AGENDA:
   C. Social District Permit Recommendation          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. You handled
the initial eight such requests at your August 25, 2020 and September 8, 2020
meetings. The attached resolution is for Capone’s Speakeasy & Pizzeria and 794
Kitchen & Bar which are also 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. 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 Commissioner Ramsey, second by Commissioner Rinsema-Sybenga,
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: Emory, Johnson, Gawron, Hood, Ramsey, German, and
           Rinsema-Sybenga
             Nays: None
MOTION PASSES

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2021-24     NEW BUSINESS:
   A. Creation of a Citizen’s Commission on Economic Equality         Economic
      Development – REMOVED PER STAFF REQUEST
   B. Rezoning 685 Access Highway Planning
SUMMARY OF REQUEST: Request to rezone the property at 685 Access Highway
from I-1, Light Industrial to I-2, General Industrial by Asphalt Paving, LLC.
The Planning Commission will meet for a special meeting on Thursday, March 4
to hold two public hearings for this proposed project. The first hearing will be a
request to rezone the property. The second hearing will be a request for a
special use permit to operate an asphalt plant in an I-2 district, contingent upon
the successful rezoning of the property.
The company currently runs the asphalt company at 1000 E Sherman Boulevard
and is proposing to move operations to 685 Access Highway, which would free
up the Sherman property for more appropriate commercial uses.
STAFF RECOMMENDATION:          To approve the request to rezone property at 685
Access Highway from I-1, Light Industrial to I-2, General Industrial.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to approve the request to rezone property at 685 Access Highway from I-1, Light
Industrial to I-2, General Industrial.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Ramsey, German, Rinsema-
           Sybenga, and Emory
            Nays: None
MOTION PASSES
2021-25     ANY OTHER BUSINESS:
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Ramsey,
to adopt the new form for the City Manager’s Evaluation and to complete the
Evaluation by May 28, 2021.
2nd Motion: Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor
Hood, to publish and adopt the new form for the City Manager’s Evaluation and
complete the Evaluation by April 27, 2021.
      3rd Motion: Motion by Commissioner Rinsema-Sybenga to complete the
      City Manager’s Evaluation using the current (old) form and complete the
      Evaluation by April 13, 2021 and to review and discuss the new form for the
      City Manager’s Evaluation at the May 10, 2021 Worksession Meeting.
      ROLL VOTE: Ayes: Ramsey, German, Rinsema-Sybenga, Emory, Johnson,
                 and Gawron
                   Nays: None

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                  Abstain: Hood
      MOTION PASSES
Commissioner Ramsey raised the issue of an additional Worksession meeting
being held each month.
Commissioner German would like to discuss the social equity report for medical
and recreational marihuana.
PUBLIC COMMENT:         Public comments were received.
ADJOURNMENT:      The City Commission meeting adjourned at 7:15 p.m.


                                          Respectfully Submitted,




                                          Ann Marie Meisch, MMC – City Clerk




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