City Commission Worksession Minutes 02-11-2019

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                           CITY OF MUSKEGON

                          Monday, February 11, 2019
                                  5:30 p.m.
                          City Commission Chambers


Present:   Mayor Gawron, Vice-Mayor Hood, Commissioners Turnquist,
           German, Johnson, Warren, and Rinsema-Sybenga

Approval of Contract for Critical Dune Enforcement
The City approved its local Critical Dune ordinance on December 12, 2017.
Staff released a Request for Qualifications to enforce the ordinance in 2018
and Prism was the only applicant. Staff is requesting approval of the
contract and fee schedule to allow Prism to enforce the ordinance.

This item will be on the February 12, 2019 Commission Meeting agenda for
consideration by the City Commission.

PILOT – Gencap 1021 Jefferson Limited Dividend Housing Association,
Gencap 1021 Jefferson Limited Dividend Housing Association, LLC is
proposing an affordable housing development at 1021 Jefferson Street and
is requesting a Payment in Lieu of Taxes (PILOT) for the project. The
development will include 73 residential units and 2,300 square feet of
commercial space. There will be 55 one-bedroom units and 18 two-
bedroom units. Ten units will be at 30% AMI, nine units will be at 40% AMI,
11 units will be low-income disability units, 14 units will be at 60% AMI and
29 units will be at 80% AMI. A service charge of 4% will be imposed, as
well as a municipal services fee of 2%.

This item will be on the February 12, 2019 Commission Meeting agenda for
consideration by the City Commission.

Utility Relocations on Lakeshore Drive
Discussion took place regarding the possibility of burying utility lines for
Comcast and Frontier when road reconstruction is completed on five blocks
of Shoreline Drive. Business Owners and residents would like the unsightly
lines buried and will be inquiring about the possibility of grant money being
used to help with the burden of cost, estimated to be $225,000. There was
discussion of the possibility of a special assessment for all or a portion of
the cost. There was also discussion of using some of the funds from a fund
left by Sappi Paper Co. for a portion of the project. Commissioner Johnson
would like us to move forward with sending notices to property owners
regarding a special assessment so we can gauge their interest.

Sale of City Owned Property to Damfino Development, LLC
Sell a city owned parcel, 1490 Edgewater Street, to Damfino Development,
LLC for a purchase price of $15,000. Closing to be scheduled at the
earliest convenience for both parties, and closing costs to be paid by
Damfino Development, LLC. The parcel is landlocked between the Harbour
Towne Marina and vacant land currently owned by Damfino Development,
LLC. The parcel became isolated when land was conveyed for the Harbour
Towne Marina.

This item was on the agenda for the February 12, 2019 meeting but has
been removed so that the City Manager can explore the potential of a
property “swap”, as suggested by Commissioner Johnson, for property that
abuts one of the City’s Charter Parks. Scott Musselman, from Damfino
Development, LLC, is agreeable to either a purchase or swap for a like-
sized portion of property.

Sanford & Peck 2-Way Conversion
Leo Evans, City Engineer, presented information to the City Commission
and is seeking support for converting Peck & Sanford to two-way streets.
He has discussed the project with Muskegon Public Schools, Hackley
Hospital, City of Muskegon Heights, and the Nelson Neighborhood
Association. All entities are supportive of the project.

Muskegon Public Schools – Discuss Ideas for Joint Meeting Items
There was discussion about the upcoming meeting, February 19, 2019,
with the Muskegon Public Schools Board of Education. The City Manager
asked that Commissioners email him if there were any specific topics they

would like to discuss with the school board. Some suggestions were
provided to the commission by Leigh Ann Mikesell.

Short Term Vacation Rentals
The Director of Public Safety requests that the Commission consider
approving a stand-alone ordinance “Short Term Vacation Rentals”
regulation. The city has experienced an increase in short term vacation
rentals over the past couple of years. These specialty rental offerings are
not regulated in our current “Housing Rental” ordinance. The ordinance will
address applying and receiving a short term rental certificate and a safety
inspection of the unit(s). Certificate holders will be responsible for insuring
tenants are aware and complies with relevant city ordinances, with a focus
on number of occupants, recreational fires, parking, fireworks, noise, and
trash to name a few noted problem areas that staff has experienced in an
attempt to regulate short term rentals. The requested ordinance will
improve neighborhood relations where short term rentals are now located,
create a safer and peaceful environment for short term tenants and

This proposed ordinance was discussed at length and there were members
of the public that also gave input. There may be some additional changes
to this ordinance before it is adopted.

This item will be on the February 12, 2019 Commission Meeting agenda for
consideration by the City Commission.

Organizational Changes
The City Commission discussed organization changes proposed by the
City Manager. He will be seeking approval of changes to the city’s
organization, specifically in the workload for the division heads and
operations at the LC Walker Arena. Modify the Municipal Services Division
to include Planning, Economic Development and Community and
Neighborhood Services. Establish positions for an Economic Development
Director, a Strategic Initiatives Director and a Business Development

Re-establish the Public Works Director overseeing the Engineering
Department, Water Filtration Plant, Utility Department and Department of
Public Works and appoint Leo Evans as the division head.

Establish positions for operations at the LC Walker Arena including an
Arena Maintenance Worker, an Arena Finance Manager, and an Arena Box
Office Manager.

This item will be on the February 12, 2019 Commission Meeting agenda for
consideration by the City Commission.

Any Other Business
Commissioner Warren asked about the kiosk that she had suggested for
helping to direct city hall foot traffic.

Adjournment: The Work Session meeting adjourned at 10:35 p.m.

                                       Respectfully Submitted,

                                       Kimberly Young, Deputy City Clerk


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