City Commission Minutes 08-22-2017

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
          AUGUST 22, 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, August 22, 2017. Elder
Holmes, Holy Trinity 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 Eric Hood, Commissioners
Ken Johnson, Debra Warren, Byron Turnquist, Willie German, Jr., and Dan
Rinsema-Sybenga, City Manager Franklin Peterson, City Attorney John Schrier,
and City Clerk Ann Meisch.
2017-68    CONSENT AGENDA:
     A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the July 25, 2017 Regular City
Commission Meeting and the minutes of the August 7, 2017 Worksession
Meeting.
FINANCIAL IMPACT:      None
BUDGET ACTION REQUIRED:       None
STAFF RECOMMENDATION:         Approval of the minutes.
     B. Justice Assistance Grant     Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the Director and the City Manager to enter into an
agreement with the City of Muskegon Heights and Muskegon County in regards
to the disbursement of the FY 2017 Justice Assistance Grant. It is further
requested that the Mayor be authorized to sign the Memorandum of
Understanding. Note that time is of the essence as this grant requires a
governing body review period and the grant submission and the grant deadline
is September 5.


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Although the Bureau of Justice Assistance has designated us as being in a
disparate funding situation due to the County providing more than 50 % of the
jail facilities, our proposal is to keep the allocations exactly as they initially came
down from the BJA which is as follows: County of Muskegon - $0; City of
Muskegon - $24,226; and City of Muskegon Heights - $14,929. Note that BJA uses
crime data versus population in making these allocation decisions.
The City of Muskegon portion is planned to be used in continuation of the
manner in which the previous year’s JAG funding was used which is for the
prosecution of city ordinance cases dealing primarily with neighborhood issues.
FINANCIAL IMPACT:          None
BUDGET ACTION REQUIRED:           None
STAFF RECOMMENDATION:             Staff recommends approval of this request.
      C. Frank’s Taco Shack Concession Contract             Department of Public
         Works
SUMMARY OF REQUEST: Staff is asking permission to enter into a seasonal
contractual agreement, for 2017, with Frank Galindo of Frank’s Taco Shack, at
Pere Marquette Park, located within the City of Muskegon, to sell various items,
as stated in their proposal, from a mobile concession.
FINANCIAL IMPACT:          Concession revenue is 10% of gross receipts.
BUDGET ACTION REQUIRED:           None
STAFF RECOMMENDATION:         Enter into a season Concession/Business
contractual agreement, for 2017, with Frank Galindo of Frank’s Taco Shack.
      D. City-MDOT Agreement; Laketon from Getty to Creston (H1706-123986A)
         Department of Public Works
SUMMARY OF REQUEST: Approve the contract with MDOT for the reconstruction
of Laketon Avenue between Getty and Creston and approve the resolution
authorizing the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT:         MDOT’s participation is limited to the approved federal
funds of $1,160,000. The estimated total construction cost is $2.2 million plus
engineering cost.
BUDGET ACTION REQUIRED:           None
STAFF RECOMMENDATION:         Approve the contract and resolution authorizing
the Mayor and Clerk to sign both.
      E. Roof Replacement – Water Filtration Plant Administration Building
         Department of Public Works/Water Filtration
SUMMARY OF REQUEST: Authorize staff to enter into a roof replacement
agreement at the Water Filtration Plant – Administration Building with Bob’s

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Roofing since they submitted the lowest responsible bid of $66,000.
FINANCIAL IMPACT:         $66,000
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:           Authorize staff to enter into an agreement with
Bob’s Roofing for a cost of $66,000.
      I. Adopt a Resolution Approving the Liquor License Application for Pigeon
         Hill Brewing Co., LLC as a Small Distiller at 500 W. Western Avenue
         City Clerk
SUMMARY OF REQUEST: To adopt a resolution approving the liquor license
application for Pigeon Hill Brewing Co., LLC as a Small Distiller at W. Western
Avenue.
The primary purpose of seeking these licenses is to allow production of
packaged cocktails. A cocktail in a can or a keg. Those kegs/cans would then
be made available for sale throughout their distribution network. While some of
the products could be made available in the taproom, there are no plans to
turn the taproom into a cocktail bar or to add straight spirits to the menu.
FINANCIAL IMPACT:         None
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:           Adopt a resolution approving the request of
Pigeon Hill Brewing Co., LLC for a liquor license as a Small Distiller at 500 W.
Western Avenue.
      J. Certification of MERS Representative            Finance
SUMMARY OF REQUEST: The MERS plan document provides that “the governing
body for each municipality shall certify the names of two (2) delegates to the
Annual Meeting. One delegate shall be a member who is an officer of the
municipality appointed by the governing body of the municipality. The other
delegate shall be a member who is not an officer of the municipality, elected
by the member officer/employees of the municipality.”
The City’s employee units previously agreed to a rotating system (based on date
of joining MERS) to select one official employee representative. This year the
official employee representative attending the MERS conference will be Howard
Usher from the 517M Union group.
It is recommended that Kenneth Grant (Assistant Finance Director) be
designated as the City’s employer delegate.
FINANCIAL IMPACT:        Registration for the MERS conference in Detroit, MI is
$250 per person, additionally, mileage, hotel and related costs will be incurred.
BUDGET ACTION REQUIRED:          None


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STAFF RECOMMENDATION:          Certification of Kenneth Grant and Howard Usher
to be the City’s officer and employee delegates at the MERS annual meeting in
Detroit September 21-22, 2017.
      K. Approval of a Neighborhood Enterprise Zone Certificate – 321 Terrace
         Point Circle   Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Kevin and Kim Durnell for the new
construction of a home at 321 Terrace Point Circle. This unit is already under
construction of the State Tax Commission allows applicants to apply for a
certificate up to six (6) months after construction commences. Construction
started in May with an estimated cost of $260,865. 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.
Motion by Commissioner Warren, second by Commissioner German, to approve
the consent agenda as presented, except items F, G, and H.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
            Nays: None
MOTION PASSES
2017-69        ITEMS REMOVED FROM THE CONSENT AGENDA:
      F. Consideration of Bids – City Hall Washing and Sealing Department of
         Public Works – Engineering
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with D.C.
Byers out of Grand Rapids to wash, caulk and seal City Hall for a bid price of
$67,147 since they submitted the lowest bid upon an on-site meeting with two
contactors, the other bid was Helms Caulking for $76,250.
FINANCIAL IMPACT:        $67,147
BUDGET ACTION REQUIRED:    A budget adjustment needs to be made since
the budgeted amount was only $30,000 in the 17/18 CIP under general fund.
STAFF RECOMMENDATION:          Authorize staff to enter into an agreement with
D.C. Byers and authorize the necessary budget adjustment via the 1st quarter
reforecast.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
to authorize staff to enter into an agreement with D.C. Byers as per the proposal

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and authorize the necessary budget adjustment via the 1st quarterly reforecast.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           and Johnson
            Nays: None
MOTION PASSES
      G. Approval of Building Contract for 1350 Eastwood Drive       Community
         and Neighborhood Services
SUMMARY OF REQUEST: To award the Building Contract for the rehabilitation of
1350 Eastwood Drive to TK Construction for the City of Muskegon’s Homebuyers
Program through CNS.
FINANCIAL IMPACT:        The funding for this project has been secured with 2016
HOME funds.
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:         To award TK Construction the rehabilitation
contract for 1350 Eastwood Drive in the amount of $111,275.00 for the
Community and Neighborhood Services Office.
Motion by Commissioner Turnquist, second by Commissioner Johnson, to award
TK Construction the rehabilitation contract for 1350 Eastwood Drive in the amount
of $111,275.00 for the Community and Neighborhood Services Office.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
           Johnson, and Gawron
            Nays: None
MOTION PASSES
      H. Adopt a Resolution Approving the Liquor License Application for Pigeon
         Hill Brewing Co., LLC as a Mixed Spirit Drink Manufacturer and Small
         Distiller at 441 W. Western City Clerk
SUMMARY OF REQUEST: To adopt a resolution approving the liquor license
application for Pigeon Hill Brewing Co., LLC as a Mixed Spirit Drink Manufacturer
and Small Distiller at 441 W. Western Avenue.
The primary purpose of seeking these licenses is to allow production of
packaged cocktails. A cocktail in a can or a keg. Those kegs/cans would then
be made available for sale throughout their distribution network. While some of
the products could be made available in the taproom, there are no plans to
turn the taproom into a cocktail bar or to add straight spirits to the menu.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None


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STAFF RECOMMENDATION:           Adopt a resolution approving the request of
Pigeon Hill Brewing Co., LLC for a liquor license as a Mixed Spirit Drink
Manufacturer and Small Distiller at 441 W. Western Avenue.
Motion by Commissioner German, second by Commissioner Johnson, to adopt
a resolution approving the request of Pigeon Hill Brewing Co., LLC for a liquor
license as a Mixed Spirit Drink Manufacturer and Small Distiller at 441 W. Western
Avenue.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
           Gawron, and Hood
            Nays: None
MOTION PASSES
2017-70   PUBLIC HEARINGS:
      A. Request for the Establishment of an Industrial Development District at
         700 Terrace Point Drive     Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, KLO
Outdoor has requested the establishment of an Industrial Development District
at 700 Terrace Point Drive. The company is in the process of moving its corporate
offices to this location and plan on making significant upgrades to the real
property. The establishment of the district will allow the company to become
eligible for the Industrial Facilities Tax Abatements (IFT’s).
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:           Approval of the establishment of the Industrial
Development District.
PUBLIC HEARING COMMENCED:        Mr. Harris of KL Outdoor addressed the City
Commission. No other public comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to close the public hearing and establish the Industrial Development District.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
           Hood, and Warren
            Nays: None
MOTION PASSES
2017-71     NEW BUSINESS:
      A. Concurrence with the Housing Board of Appeals Notice and Order to
         Demolish the Following:
          1047 Wood Street

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         1826 Ray Street
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within 30 days. It is
further requested that administration be directed to obtain bids for the
demolition of the structures and that the Mayor and City Clerk be authorized
and directed to execute a contract for demolition with the lowest responsible
bidder or staff may issue infraction tickets to the owner, agent, or responsible
party if they do not demolish the structure.
FINANCIAL IMPACT:          General Funds
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to concur with the Housing Board of Appeals decision to demolish 1047 Wood
Street and 1826 Ray Street.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, Warren,
           and German
            Nays: None
MOTION PASSES
      B. Approval to Purchase Property from the Michigan Department of
         Transportation Planning & Economic Development
SUMMARY OF REQUEST: Staff is seeking approval to purchase a portion of lots
one thru five and all of lots six and seven of Block 340 from MDOT. These lots are
located between 8th and 9th Street and Webster and Muskegon. If approved,
these lots will be combined with the portion of the lots that the City already
owns, which would allow for development opportunities. This area is zoned Form
Based Code, Urban Residential Context Area, which allows for residential homes
between one and six units.
FINANCIAL IMPACT:          The cost for all of the property is $7,700
BUDGET ACTION REQUIRED:          None
STAFF RECOMMENDATION:            Approval to purchase the property.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to approve the purchase of property.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
           Rinsema-Sybenga
            Nays: None

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MOTION PASSES
      C. Convention Center      City Manager
SUMMARY OF REQUEST: In partnership with Muskegon County and Parkland
Properties, the City of Muskegon is exploring the concept of constructing a
downtown convention center, which will combine a hotel self-assessment with
accommodation taxes to raise the funds to finance a convention center
connected to the LC Walker Arena and the Holiday Inn. The City would likely be
asked to carry the debt associated with the improvements, which could be as
much as $15 Million. The debt payments would be paid with accommodation
tax dollars, and would not affect the City’s General Fund.
FINANCIAL IMPACT:        None
BUDGET ACTION REQUIRED:         None
STAFF RECOMMENDATION:            Authorize City Manager to sign the Letter of
Intent to enter into a partnership for the purposes of constructing a convention
center in Downtown Muskegon.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to authorize the
City Manager to sign the Letter of Intent to enter into a partnership for the
purposes of constructing a convention center in Downtown Muskegon.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
           and Turnquist
            Nays: None
MOTION PASSES
      D. Sale of Parking Lot    City Manager
ITEM REMOVED PER STAFF REQUEST
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 7:11 p.m.




                                             Respectfully Submitted,




                                             Ann Marie Meisch, MMC, City Clerk



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