City Commission Minutes 04-25-2017

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    CITY OF MUSKEGON
      CITY COMMISSION MEETING
            APRIL 25, 2017 @ 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 at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, April 25, 2017. Pastor Tim
Cross, Living Word Church, opened the meeting with prayer, after which the
Commission and public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present:     Mayor Stephen J. Gawron, Vice Mayor Hood, Commissioners Ken
Johnson, Debra Warren, Willie German, Jr., and Dan Rinsema-Sybenga, Byron
Turnquist, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
2017-33     CONSENT AGENDA:
      A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the April 10, 2017 Worksession
Meeting and the April 11, 2017 Regular City Commission Meeting.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the minutes.
      B. Sale of Unbuildable Vacant Lot at 1251 E. Laketon Avenue Planning &
         Economic Development
SUMMARY OF REQUEST: To approve the sale of the vacant, unbuildable lot at
1251 E. Laketon Avenue to Emerald City, LLC, owners of the adjacent property
at 1249 E. Laketon Avenue. They would like to acquire the property so that they
may combine them and put an addition on to the back of the existing building.
They have offered $600 for the parcel.
FINANCIAL IMPACT:        The sale of this lot will generate additional tax revenue
for the City.
BUDGET ACTION REQUIRED:         None

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STAFF RECOMMENDATION:          To approve the resolution and authorize the
Mayor and Clerk to sign the resolution and the deed.
      C. Telephone System Upgrade            Information Technology
SUMMARY OF REQUEST: A mandatory upgrade to our telephone system is
required. Currently our telephone system is connected to Central Dispatch’s
system. Our system is redundant with Central Dispatch. If you recall, this current
system is saving the City one million dollars over a ten year period of time. At
one time the City’s telephone bills were $10,000 each month, but we have been
able to reduce those lines to just $20,000 a year. This upgrade is mandatory and
Cisco will discontinue support in July.
FINANCIAL IMPACT:        $35,537
BUDGET ACTION REQUIRED:        A budget adjustment will be needed in the third
quarter reforecast.
STAFF RECOMMENDATION:          Staff recommends approval of the upgrade to
the current Cisco System as requested and authorize staff to sign the
agreement.
      D. Muskegon Public Schools “Youth Basketball League” and “Growing
         Goods” Funding Agreement        Planning & Economic Development
SUMMARY OF REQUEST: The City of Muskegon (“City”) is recommending
approval of the Agreement with Muskegon Public School for the management
of the Youth Basketball League and Open Gym and “Growing Goods”
programs for 2017. It is the mission of Muskegon Public Schools to provide the
best for every child every day. With the support of the City of Muskegon
programs continue to promote the fundamental core values of respect, health,
integrity, and sportsmanship, as well as providing a safe, welcoming and healthy
environment for the youth.
FINANCIAL IMPACT:   The funding will be disbursed from the 2017-2018
Community Development Block Grant/Leisure Services Fund.
BUDGET ACTION REQUIRED:        None at this time.
STAFF RECOMMENDATION:          To approve the Muskegon Public Schools
Funding Agreement.
      E. Fleet Replacement Vehicle DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) F-250 Pickup from Gorno Ford, the MI-Deal State contract
holder. Cost for this vehicle is $25,654.00 coming from the Equipment Division
fund.
FINANCIAL IMPACT:        $25,654.00
BUDGET ACTION REQUIRED:        None. Amount is what was budgeted.

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STAFF RECOMMENDATION:         Authorize staff to purchase one (1) F-250 Pickup
from Gorno Ford, the MI-Deal State contract holder.
      F. Leaf Vac DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) Leaf Vac coming from Fredrickson Equipment Supply the sole
source dealer for this brand of equipment. Cost for this Vac is $29,000 coming
from the Equipment Division Fund.
FINANCIAL IMPACT:        $29,000.00
BUDGET ACTION REQUIRED:        None. Amount is what was budgeted.
STAFF RECOMMENDATION:        Authorize staff to purchase one (1) Leaf Vac
coming from Fredrickson Equipment Supply the sole source dealer for this brand
of equipment.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the consent agenda as presented, minus items G and H.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
            Nays: None
MOTION PASSES
2017-34     ITEMS REMOVED FORM CONSENT AGENDA
      G. Annex HVAC Replacement City Manager
SUMMARY OF REQUEST: The Commission previously approved the replacement
of certain components of the HVAC system in the Annex. The original estimates
were set near $42,000. The project has been completed and did require some
scope changes. The updated final cost of the replacement is $52,635.
FINANCIAL IMPACT:        $52,635 from the Public Improvement Fund.
BUDGET ACTION REQUIRED:        None.
STAFF RECOMMENDATION:         To authorize staff to award the HVAC
replacement project to Northside Heating & Cooling.
Motion by Commissioner German, second by Commissioner Warren, to
authorize staff to award the HVAC replacement project to Northside Heating &
Cooling.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren.
            Nays: None
MOTION PASSES


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      H. Grant Authority to CNS Director to Purchase HUD Homes for Homebuyer
         Program Community & Neighborhood Services
SUMMARY OF REQUEST: To grant authority to the Director of Community and
Neighborhood Services to bid on and enter into agreements to purchase
property, on behalf of the City of Muskegon, for rehabilitation. Properties will be
used to sell to eligible buyers through the Homebuyer Program.
FINANCIAL IMPACT:         None.
BUDGET ACTION REQUIRED:           None.
STAFF RECOMMENDATION:       To authorize the Director of Community and
Neighborhood Services, Oneata Bailey, to bid on and enter into agreements to
purchase HUD Homes on behalf of the City of Muskegon.
Motion by Commissioner German, second by Commissioner Johnson, to
authorize the Director of Community and Neighborhood Services, Oneata
Bailey, to bid on and enter into agreements to purchase HUD Homes on behalf
of the City of Muskegon.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
           Warren, and German.
             Nays: None
MOTION PASSES
2017-35   PUBLIC HEARINGS:
      A. Public Hearing for the 2017 Action Plan Community & Neighborhood
          Services Department
SUMMARY OF REQUEST: To conduct a public hearing on April 25, 2017 to
receive comments from the public concerning the 2017 Action Plan developed
by the Community and Neighborhood Services Department.
FINANCIAL IMPACT:        The City is required to submit the Annual Action Plan to
receive 2017 allocations of CDBG and HOME Investment Partnership Programs.
BUDGET ACTION REQUIRED:           None.
STAFF RECOMMENDATION:          To direct staff to gather comments from the
public and to submit the 2017 Action Plan to HUD after the public comment
period.
PUBLIC HEARING COMMENCED:                 No comments were received from the
public.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to close the
public hearing.


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ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
           Warren, and German.
            Nays: None
MOTION PASSES
2017-36     NEW BUSINESS:
      A. Approval of Sale of City-owned Home at 2112 Sampson         Community
         & Neighborhood Services Department
SUMMARY OF REQUEST: To approve the resolution and instruct the Community
and Neighborhood Services department to complete the sales transaction with
Kelma Smajic-Adams for the newly constructed home at 2112 Sampson Avenue:
purchase price $158,000.
FINANCIAL IMPACT:         The proceeds from the sale will be used to continue the
rehabilitation of affordable homes through the HOME program and provide
funding for our Homebuyer’s Assistance Program.
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          To approve the resolution and direct the CNS
staff to complete the sale.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the resolution and direct the CNS staff to complete the sale.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist.
            Nays: None
MOTION PASSES
      B. Approval of a Neighborhood Enterprise Zone Certificate – 285 W.
         Western Avenue      Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from Parkland Muskegon, Inc. for the conversion
of vacant commercial space to 47 market-rate apartments at 285 W. Western
Avenue. The estimated project cost is $168,900 per unit. The property was
approved as a Neighborhood Enterprise Zone District on December 13, 2016.
The applicant has met local and state requirements for the issuance of the NEZ
certificate. They have requested the maximum 15 years for the exemption.
FINANCIAL IMPACT:          The taxes on the apartment portion of the project will
be frozen at the pre-rehabilitated rate for 15 years, with a three-year phase out
(they will receive 75% of the abatement in year 13, 50% in year 14, and 25% in
year 15).
BUDGET ACTION REQUIED:         Approval of the NEZ certificate for 15 years.

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STAFF RECOMMENDATION:             Approval of the NEZ certificate for 15 years.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve to approve the NEZ Certificate for 15 years.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson
             Nays: None
MOTION PASSES
      C. Approval of a Neighborhood Enterprise Zone Certificate – 275 W. Clay
         Avenue Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from Berkshire Muskegon LDHA, LLC for the 16
market rate units in their proposed mixed-use development at 275 W. Clay
Avenue. The estimated project cost is $183,864 per unit. The property was
approved as a Neighborhood Enterprise One District on February 14, 2017. The
certificate would only apply to the 16 market rate units and not the 68
subsidized residential units or commercial units.
FINANCIAL IMPACT:         One-half of the previous year’s state average principal
residence millage rate will be applied to the value of the facility for a duration of
15 years, with a three-year phase out (they will receive 75% of the abatement in
year 13, 50% in year 14, and 25% in year 15.
BUDGET ACTION REQUIRED:           None.
STAFF RECOMMENDATION:             Approval of the NEZ certificate for a duration of
15 years.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the NEZ certificate for a duration of 15 years.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
             Nays: None
MOTION PASSES
      D. Amendment to the Zoning Ordinance – Form Based Code, Urban
         Residential  Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to amend the Form Based Code,
Urban Residential Context Area section of the zoning ordinance to allow small
multi-plex buildings for multi-family uses.
FINANCIAL IMPACT:         None.
BUDGET ACTION REQUIRED:           None.


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STAFF RECOMMENDATION:       To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION:        The Planning Commission unanimously
recommended approval of the ordinance amendment, with two members
absent.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve the zoning ordinance amendment.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
           Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT:     The City Commission Meeting adjourned at 6:35 p.m.




                                         Respectfully Submitted,




                                         Ann Marie Meisch, MMC, City Clerk




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