City Commission Minutes 06-13-2017

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
             JUNE 13, 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, June 13, 2017. Pastor
Matt Sharpe, Evanston Avenue Baptist, 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., Dan Rinsema-Sybenga, and Byron
Turnquist, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
INTRODUCTIONS/PRESENTATION:
      A. Recognition of Spring 2017 Citizen’s Academy Graduates
         Public Safety
Mayor, Stephen J. Gawron, read the resolution and thanked the 2017 Citizen’s
Police Academy for their faithful attendance, completion, and graduation from
the ten week academy.
2017-46     CONSENT AGENDA:
      A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the May 23, 2017 Regular
City Commission Meeting.
FINANCIAL IMPACT:       None
BUDGET ACTION REQUIRED:        None
STAFF RECOMMENDATION:          Approval of the Minutes.
      C. Approval of a Neighborhood Enterprise Zone Certificate – 325 Terrace
         Point Circle – Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Eric and Michelle Ringelberg for the

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new construction of a home at 325 Terrace Point Circle. This unit has already
been constructed and the State Tax Commission allows applicants to apply for
a certificate up to six (6) months after construction commences. Construction
started in February with an estimated cost of $320,112. The applicant has met
local and state requirements for the issuance of the NEZ certificate.
FINANCIAL IMPACT:        Taxation will be 50% of the State average of new home
for the next 12 years.
BUDGET ACTION REQUIRED:        None.
STAFF RECOMMENDATION:          Approval of the NEZ certificate.
      D. Approval of a Neighborhood Enterprise Zone Certificate – 311 Terrace
         Point Circle – Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Steve and Lori Videto for the new
construction of a home at 311 Terrace Point Circle. This unit has already been
constructed and the State Tax Commission allows applicants to apply for a
certificate up to six (6) months after construction commences. Construction
started in February with an estimated cost of $314,072. The applicant has met
local and state requirements for the issuance of the NEZ certificate.
FINANCIAL IMPACT:       Taxation will be 50% of the State average of new
homes for the next 12 years.
BUDGET ACTION REQUIRED:        None.
STAFF RECOMMENDATION:          Approval of the NEZ certificate.
      E. Authorization of Community Housing Development Organization
         (CHDO) Agreements – Community & Neighborhood Services
SUMMARY OF REQUEST: The Muskegon County Habitat for Humanity has
proposed to build (2) three-bedroom, single-family homes in the Nims
Neighborhood. The total budget for this project is $229,065. Muskegon County
Habitat for Humanity has requested $79,900, in HOME funds to assist in the
completion of these homes, as well as continuing the partnership between the
City and Habitat in providing decent affordable homes within the City of
Muskegon.
After the Mayor and Clerk sign the contracts, the CNS office will retain one copy
of our files and a copy will be supplied to Muskegon County Habitat for
Humanity for their records.
FINANCIAL IMPACT:        Funding will be allocated from the 2016 HOME
program.
BUDGET ACTION REQUIRED:        The City Commission made budgeting allocation
decisions last year.

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STAFF RECOMMENDATION:           To direct Mayor and Clerk to sign agreements
COMMITTEE RECOMMENDATION:               Citizen District Council approved.
      G. CDBG Program Administration Agreement – City of Muskegon/City of
         Norton Shores
SUMMARY OF REQUEST: The City of Muskegon has contracted with the City of
Norton Shores to administer their Community Development Block Grant (CDBG)
program since 2006. The current Agreement concludes on June 30, 2017. The
new agreement extends for two years (through June 30, 2019).
FINANCIAL IMPACT:       The City of Norton Shores will pay the maximum
allowable CDBG costs per program year to the City of Muskegon, minus $1,000
to administer their CDBG program
BUDGET ACTION REQUIRED:         None.
STAFF RECOMMENDATION:           To approve the Agreement and authorize the
Mayor and City Clerk to sign.
      H. Cemetery Perpetual Care Fund – CFFMC             City Manager
SUMMARY OF REQUEST: The City Commission recently approved a change to
the fund to allow for a loan in support of development at 351 West Western.
The developers have received a conditional offer from the MEDC to provide
grant assistance to the project. However, the MEDC’s recommendation is
contingent upon the City’s loan terms being adjusted to allow for better cash
flow in the project. Absent a change to our loan, the grant funding is unlikely to
be recommended at its current level.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION: To authorize the Community Foundation for
Muskegon County to invest $500,000 from the City of Muskegon Cemetery
Perpetual Care Fund in 351 W. Western Ave. LLC, as a piece of the
financing for a six-story residential, commercial and retail development on
terms that are as follows:

The return to the Cemetery Perpetual Care Endowment Fund will be interest at
0% for the first three years and then at the prime rate beginning in year four,
adjusted annually. Years 1-5, monthly payments will consists of interest only.
Beginning in Year six, monthly payments will consists of principle and interest
(prime), based on 25 year amortization. A balloon payment will be due at year
15. The loan will be secured by a subordinated mortgage on the development.

      J. Community Relations Committee Recommendation for Commission
         Opening City Clerk

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SUMMARY OF REQUEST: To concur with the recommendations from the
Community Relations Committee regarding the appointment by City Manager,
Frank Peterson, of Jonathan Wilson to the Housing Commission.

BUDGET ACTION REQUIRED:          None

STAFF RECOMMENDATION:      To accept the recommendation made by the
Community Relations Committee of Frank Peterson to appoint Jonathan Wilson
to the Housing Commission.

COMMITTEE RECOMMENDATION:           To accept the appointment by Frank
Peterson of Jonathan Wilson to the Housing Commission.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the consent agenda as presented, minus items B, F, and I.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
            Nays: None
MOTION PASSES
2017-47 ITEMS REMOVED FROM THE CONSENT AGENDA
      B. Special Event Request – Burning Foot Beer Festival at Pere Marquette
         Park - Planning
SUMMARY OF REQUEST: The Lakeshore Brewer’s Guild is holding their 3rd annual
“Burning Foot Beer Festival” event at Pere Marquette Park on August 26, 2017.
City Commission approval is required due to the request to allow overnight
camping at the beach.
Overnight camping proposal: Tent camping is proposed on the beach to the
south of the festival area. RV camping is proposed in the grassy area of
Margaret Drake Elliott Park adjacent to the parking lot near the Coast Guard
Station. Camping areas will be open at 9:00 AM on Saturday, August 26 and be
cleared out by 11:00 AM on Sunday, August 27. All camping areas will be
monitored by festival personnel. A site plan is attached showing the proposed
camping areas. Burning Foot personnel will obtain the necessary Health
Department/DEQ permits.
FINANCIAL IMPACT:        None.
BUDGET ACTION REQUIRED:          None.
STAFF RECOMMENDATION:            Staff recommends approval.
Motion by Commissioner Turnquist, second by Commissioner Johnson to
approve the special event request from Burning Foot Beer Festival at Pere
Marquette Park.

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ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
           Turnquist, and Johnson
            Nays: None
MOTION PASSES
      F. Approval of the Fair Housing Agreement with Muskegon Heights and
         Norton Shores – Community & Neighborhood Services
SUMMARY OF REQUEST: The cities of Muskegon, Muskegon Heights, and Norton
Shores are entering into an agreement with the Fair Housing Center of West
Michigan to conduct fair housing testing in the County of Muskegon per the
recommendation of the 2009 Analysis of Impediments Report. This agreement
will be for 2017-2019.
FINANCIAL IMPACT:       Based on population, the City of Muskegon will pay
$17,680 of the annual cost.
BUDGET ACTION REQUIRED:        None.
STAFF RECOMMENDATION:          To approve the Agreement and authorize the
Mayor to sign.
Motion by Commissioner Warren, second by Commissioner German to approve
the Fair Housing Agreement with Muskegon Heights and Norton Shores.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
            Nays: None
MOTION PASSES
      I. LC Walker Concession Point of Sale Contract     City Manager
SUMMARY OF REQUEST: The LC Walker arena concession stands grossed nearly
$500,000 in sales during the current fiscal year. To better manage these sales,
staff is requesting permission to purchase and implement a point of sales system.
The system, Digital Dining, would be implemented prior to the start of the hockey
season, and would be interconnected to any restaurants that lease space in the
arena as well.
FINANCIAL IMPACT:        $75,000
BUDGET ACTION REQUIRED:        None. This cost is included in the 4th Quarter
Budget Reforecast.
STAFF RECOMMENDATION:          To authorize the City Manager to enter into a
Purchase agreement with Services Integrated Systems, Inc. of Nunica, MI to
install and implement the Digital Dining Point of Sale System at the LC Walker
Arena, and to purchase all necessary equipment to accomplish the installation
and implementation.

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Motion by Commissioner Johnson, second by Commissioner German to
authorize the City Manager to enter into a purchase agreement with Service
Integrated Systems, Inc. of Nunica, MI to install the Digital Dining Point of Sale
System at the LC Walker Arena, and to purchase all necessary equipment to
accomplish the installation and implementation.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
             Nays: None
MOTION PASSES
2017-48   PUBLIC HEARINGS:
      A. Transmittal of 2017-18 Proposed Budget – City Manager
SUMMARY OF REQUEST: At this time staff is transmitting to the City Commission
the proposed budget for fiscal year 2017-18 which starts July 1, 2017. An
electronic version of the budget has been distributed to Commissioners.
Additionally, the budget is available for public inspection on the City’s website
and at the City Clerk’s office or Hackley Public Library.
The proposed budget will be reviewed in detail with staff at the June 12th
Worksession. A public hearing on the budget will be held at the regular
Commission meeting the following evening on June 13th. City ordinance requires
that the budget be adopted by the Commission on or before the second
Commission meeting in June.
FINANCIAL IMPACT:         The budget is the City’s financial plan for the coming
fiscal year.
BUDGET ACTION REQUIRED:          None at this time.
STAFF RECOMMENDATION:            To accept public comment.
PUBLIC HEARING COMMENCED:
The following persons offered comments on the proposed budget:
Chris Drake, 1309 Randolph, City of Muskegon Firefighter
Mike McPhail, 1345 Lake Dunes Drive – opposes cuts to Fire Department
Terri Gust, 86 N. Bear Lake Road – against cuts to Fire Department
Mr. Murphy, 436 Adams – against cuts to Fire Department
Ruby Clark, Marquette Neighborhood Association President – why cut – should
increase
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to close the public hearing.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,

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             Hood, and Warren
             Nays: None
MOTION PASSES
2017-49      NEW BUSINESS:
      A. Defined Benefit Plan Amortization Extension Agreement – Finance
SUMMARY OF REQUEST: To approve the Defined Benefit Plan Amortization
Extension Agreement to extend the amortization periods for funding the
unfunded accrued liability for the provision of the City’s defined benefit pension
benefits through MERS. The extension of the amortization periods will assist the
City by reducing significant financial stress to the budget in coming years.
FINANCIAL IMPACT:            It is estimated that the City’s required contribution rate
for the first year (fiscal year 2017-18) would decrease by over $304,000.
BUDGET ACTION REQUIRED:            Future budgets will be reflective of this change.
STAFF RECOMMENDATION:       To approve the Defined Benefit Plan Amortization
Extension Agreement and authorize the Mayor to sign the agreement.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the Defined Benefit Plan Amortization Extension Agreement and
authorize the Mayor to sign the agreement.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
           Warren, and German
             Nays: None
MOTION PASSES
      B. Request for Approval of a Planned Unit Development at Former Nims
         School – Planning & Economic Development
SUMMARY OF REQUEST: Request for Final Planned Unit Development (PUD)
approval at the former Nims School located at 1161 W. Southern Avenue by
Avasure, LLC. This project will reutilize the building as a number of uses; including
offices, research and development and a business incubator.
FINANCIAL IMPACT:          None.
BUDGET ACTION REQUIRED:            None.
STAFF RECOMMENDATION:              Staff recommends approval of the final PUD.
COMMITTEE RECOMMENDATION:                The request was unanimously
approved at the May 22, 2017 Special Planning Commission Meeting.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the Planned Unit Development at the former Nims School.


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ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
           Rinsema-Sybenga
            Nays: None
MOTION PASSES
      C. Neighborhood Empowerment Program City Manager
SUMMARY OF REQUEST: Staff and City Commissioners have worked hard to
encourage strong and vibrant neighborhoods. One of our greatest assets is to
accomplish this is our neighborhood associations. This program is designed to
empower neighborhoods to get more involved in activities that beautify their
neighborhood, engage neighbors, provide positive activities for children, and
otherwise improve quality of life within the neighborhood. This grant program
builds on the current neighborhood grant program and provides opportunities
for neighborhood groups to raise additional funds to make investments in their
neighborhoods.
FINANCIAL IMPACT:        $100,000 - $150,000 annually.
BUDGET ACTION REQUIRED:        None.
STAFF RECOMMENDATION:         To adopt the Neighborhood Empowerment
Program and encourage neighborhood associations to utilize the program as a
tool to help guide the development and improvement of their neighborhood.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to adopt the Neighborhood Empowerment Program.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist.
            Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: No public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 7:20 p.m.


                                            Respectfully Submitted,




                                            Ann Marie Meisch, MMC, City Clerk




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