City Commission Minutes 03-28-2023

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                                 City of Muskegon
                             City Commission Meeting
                                       Minutes


                              March 28, 2023, 5:30 pm
                                Muskegon City Hall
                      933 Terrace Street, Muskegon, MI 49440

Present:              Mayor Ken Johnson
                      Commissioner Rachel Gorman
                      Commissioner Rebecca St.Clair
                      Commissioner Eric Hood
                      Vice Mayor Willie German, Jr.
                      Commissioner Michael Ramsey
                      Commissioner Teresa Emory

Staff Present:        City Manager Jonathan Seyferth
                      City Clerk Ann Meisch
                      City Attorney John Schrier
                      Deputy City Clerk Kimberly Young



1.    Call To Order
      Mayor Ken Johnson called the meeting to order at 5:30 p.m.
2.    Prayer
      A moment of silence was observed, in lieu of opening prayer.
3.    Pledge of Allegiance
      The Commission and public recited the Pledge of Allegiance to the Flag.
4.    Roll Call
      As recorded above
5.    Honors, Awards, and Presentations
6.    Public Comment on Agenda Items
      Public comments were received.


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7.   Consent Agenda
     Action No. 2023-46
     Motion by: Commissioner Ramsey
     Second by: Commissioner Emory
     To accept the consent agenda as presented.
     Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair,
     Commissioner Hood, Vice Mayor German, Commissioner Ramsey, and
     Commissioner Emory
                                                          MOTION PASSES (7 to 0)


     7.a   Approval of Minutes
           To approve minutes of the February 28, 2023 Regular Meeting.
           STAFF RECOMMENDATION: To approve the minutes.
     7.b   Sale of 1379 Pine Street
           Staff is requesting approval of a purchase agreement for 1379 Pine Street.
           1379 Pine Street was constructed through the agreement with Dave
           Dusendang to construct infill housing with ARPA funding. The offer is for
           the full listing price with no seller concessions. The offer also includes
           costs to cover appliances and air conditioning.
           STAFF RECOMMENDATION: To approve the purchase agreement for
           1379 Pine Street.
     7.c   Sale of 263 Catherine Avenue
           Staff is requesting approval of a purchase agreement for 263 Catherine
           Avenue. 263 Catherine Avenue was constructed through the agreement
           with Dave Dusendang to construct infill housing with ARPA funding. The
           offer is for $6,000 over the full listing price with $6,000 in seller
           concessions.
           STAFF RECOMMENDATION: To approve the purchase agreement for
           263 Catherine.
     7.d   Sale of 1373 Pine Street
           Staff is requesting approval of a purchase agreement for 1373 Pine Street.
           1373 Pine Street was constructed through the agreement with Dave


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      Dusendang to construct infill housing with ARPA funding. The offer is
      over the full listing price with 6% seller concessions. The offer also
      includes costs to cover appliances. Once the appliances and seller
      concessions are accounted for, the offer is for full price.
      STAFF RECOMMENDATION: To approve the purchase agreement for
      1373 Pine Street.
7.e   Arena Solar Power Purchase Agreement
      Charthouse Energy proposes, with financial backing by Sunwealth, LLC,
      to place solar panels on the roof the Trinity Health Arena and sell the
      energy to the City under a Power Purchase Agreement (PPA) to reduce
      the City’s energy costs over the 25 year life of the system.
      This item was discussed at the July, 2020 work session and the April 27th,
      2021 regular meeting before being approved in a prior format at the June
      8th, 2021 meeting. Due to tax issues, it was then rescinded at the June
      14th, 2022 meeting. The tax issues have been resolved due to additional
      incentives being available under the IIJA, so a new financier (Sunwealth,
      LLC) has agreed to take the project on.
      The updated proposal was reviewed with the Commission at the February
      13, 2023 Work Session meeting. After positive feedback and a legal
      review of the Power Purchase Agreement (PPA) by Matthew Greenberg of
      Miller Canfield (at the recommendation of City Attorney John Schrier, as
      Mr. Greenberg assisted the City in developing the 2021 rescinded
      agreement), staff is pleased to present the proposal and PPA for formal
      adoption by the City Commission.
      STAFF RECOMMENDATION: To enter into a 25 Year Power Purchase
      Agreement contract with Sunwealth, LLC to purchase power at a reduced
      cost from a solar generating facility installed on the Trinity Health Arena
      roof, and authorize the Manager to sign.
7.f   Laketon-Lakeshore DNR Trust Fund Grant
      The City intends to apply for MDNR Trust Fund grants for the Laketon-
      Lakeshore Trail Connector and would like public feedback on the project
      and application. Two grants will be submitted for the project, one for the
      portion from Laketon to Apple and one for the portion from Apple to
      Shoreline, in order to maximize the potential for funding. This is based on
      recommendations from the West Michigan Trails & Greenways Coalition
      and Prein & Newhof, who have helped the City with an application for


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      MDOT Transportation Alternatives Program (TAP) funding for the trail.
      The DNR Trust Fund grants and the MDOT TAP grant funds are able to
      match each other, potentially reducing the City’s contribution.
      STAFF RECOMMENDATION: To authorize staff to apply for MDNR Trust
      Fund grants for the Laketon-Lakeshore Trail Connector.
7.g   Portable Restroom Service Extension
      Staff requests approval for a one-year extension to a three-year contract
      from 2020 with Kerkstra Portable Restroom Service for the 2023 season.
      Staff reached out to other area companies seeking to determine the
      market, and found that Kerkstra Portable Restroom Service is the only
      company able and willing to service Muskegon for the 2023 season.
      Kerkstra has offered updated pricing, which staff has confirmed is still well
      below the market rates offered by the competitors, again none of which
      are even able or willing to provide the number of units required by the City.
      Staff plans to re-bid a three-year contract in fall of 2023 with hopes the
      market will be more open to and supportive of providing portable restroom
      service to the Muskegon market.
      The majority of cost is from the Parks budget, however the boat launch
      ramps, special events such as Taste of Muskegon and the fireworks, the
      farmers market and the Western Market all use these services as well.
      AMOUNT REQUESTED: $30,000
      AMOUNT BUDGETED: $15,000 (Parks) / $15,000 (Other)
      FUND OR ACCOUNT: 101-770 and Various
      STAFF RECOMMENDATION: To authorize staff to enter into a one-year
      extension of the City's contract with Kerkstra Portable Restroom Service
      for the 2023 season.
7.h   CCTV Services for Sewer Mains
      Staff requests award of a three-year contract to Rogue Industrial Services
      for cleaning and televising services in the City’s sanitary and storm sewer
      systems. Staff issued a public bid for sewer cleaning and televising
      services to supplement staff capacity on complex and/or large televising
      projects. In 2023, this contract will be used to televise the sewers in Apple
      Avenue in advance of MDOT’s fiscal year 2026 reconstruction project to
      assist staff when deciding which sewers may need repairs or replacement


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      in advance of or as a part of the MDOT project. In future years, staff will
      use this contract for televising of sewers when needed in large sections of
      the City or on a tight deadline, such as for Clean Water State Revolving
      Fund projects. Rogue Industrial Services has performed work for many
      West Michigan communities as shown in their attached proposal, and is
      recommended based on their work history and their low bid.
      AMOUNT REQUESTED: $79,109 (Three Years)
      AMOUNT BUDGETED: $25,000 (FY2023)
      FUND OR ACCOUNT: 590 (Sewer)/202 (Highway)
      STAFF RECOMMENDATION: To authorize staff to enter into a three-year
      contract with Rogue Industrial Services for cleaning and televising service
      in the City's sanitary and storm sewer systems.
7.i   EGLE Brownfield Grant/Loan Application for Shaw-Walker Project
      Typically, these applications are run through the Brownfield
      Redevelopment Authority, but they are already applicants for funding on
      behalf of Adelaide Pointe and cannot submit two requests in the same
      program year. EGLE has indicated that the city may directly apply on
      behalf of the Shaw-Walker project.
      We have worked closely with Environmental Resource Group for several
      months on the environmental needs that are anticipated at Shaw-Walker,
      and with vapor mitigation needed for all buildings the costs will be
      substantial. EGLE administers an annual program that allows public
      entities to apply for up to $1,000,000 in grant funds and up to $1,000,000
      in loan funds. Regardless of whether the local Brownfield Board or the city
      serves as the applicant, all loan/grant applications are considered backed
      by the full faith and credit of the city.
      Parkland has asked for the city commission to allow the city to serve as
      the applicant for these funds, and has agreed to make sure the city is
      made whole either through TIF capture (the typical repayment method) or
      direct payment if TIF revenues are insufficient. ERG will do the leg work
      on the actual application and submittal, and work with our staff during
      implementation if funding is achieved for all necessary reporting. Staff
      recommends approval of this request.
      STAFF RECOMMENDATION: To authorize staff to apply for EGLE
      Brownfield Grant/Loan Funding for use at the Shaw Walker Project in an
      amount of $2,000,000.

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8.    Public Hearings
9.    Unfinished Business
10.   New Business
      10.a   Off-Premises Tasting Room License - The People's Cider Company
             The People’s Cider Company has been chosen for a chalet at Western
             Market and needs an Off-Premises Tasting Room License and a Social
             District License.
             FUND OR ACCOUNT: $1,000 revenue to Liquor Licenses
             STAFF RECOMMENDATION: To approve the resolution requesting an
             Off-Premises Tasting Room License and Social District License for The
             People’s Cider Company, 307 W. Western, Suite Q and authorize the
             Clerk to sign.
             Action No. 2023-47(a)
             Motion by: Commissioner Gorman
             Second by: Commissioner Hood
             To approve the resolution requesting an Off-Premises Tasting Room
             License and Social District License for The People's Cider Company, 307
             W. Western, Suite Q and authorize the Clerk to sign.
             Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
             St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
             Ramsey, and Commissioner Emory
                                                              MOTION PASSES (7 to 0)


      10.b 1170 W. Southern Avenue (MOCAP Building) Property Sale/Transfer
             MOCAP operates out of 1170 W. Southern Ave. This is currently a City
             owned property and MOCAP has expressed a desire to own the
             building/property the organization has been operating out of for many
             years. This action will, through a multi-step process, transfer that property
             to MOCAP via the Hume Home of Muskegon. The City will receive $3,000
             for the sale.
             The Muskegon-Oceana Community Action Partnership (MOCAP)
             operates out of a building (a former City fire station) at 1170 W. Southern



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             Ave. MOCAP has been in the building for many years. MOCAP wishes to
             purchase the property from the City for a variety of different reasons.
             The City originally obtained the property from the Hume Home of
             Muskegon in 1950 paying $3,000. The purchase agreement has a deed
             restriction which states that when the City stops using the property for
             municipal purposes the Hume Home may exercise its right to repurchase
             the property for the same amount the City purchased it.
             The Hume Home of Muskegon is comfortable with the property being
             purchased by MOCAP, however, because of the deed restrictions from the
             1950s the Hume Home of Muskegon is going to exercise its right to
             purchase the property back for $3,000 (paid to the City) and then sell it to
             MOCAP for $3,000.
             This two-step process will cure any questions regarding the property
             transfer/deed restriction and will allow MOCAP to take ownership of a
             building it has operated in and maintained for many years.
             STAFF RECOMMENDATION: To approve the sale of 1170 W. Southern
             Avenue back to the Hume Home of Muskegon for the sum of $3,000 as
             provided for in the original 1950 purchase agreement and authorize the
             City Manager to sign all closing documents.
             Action No. 2023-47(b)
             Motion by: Commissioner Ramsey
             Second by: Commissioner Emory
             To approve the sale of 1170 W. Southern Avenue back to the Hume
             Home of Muskegon for the sum of $3,000 as provided for in the original
             1950 purchase agreement and authorize the City Manager to sign all
             closing documents.
             Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
             St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
             Ramsey, and Commissioner Emory
                                                             MOTION PASSES (7 to 0)


11.   Any Other Business
      11.a   Closed on CSX Rail Road




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             City Manager, Jonathan Seyferth, told the Commissioners that the city
             signed closing documents on the CSX Rail Road purchase.
      11.b Odd/Even Parking
             Commissioner Hood raised the question about odd/even parking and what
             to do when it's the 31st followed by the 1st. Chief Kozal advised that would
             be two odd days in a row.
      11.c   Pubic Forums for Master Plan
             Mayor Johnson thanked staff members Mike Franzak, Jamie Pesch, and
             Deborah Santiago-Sweet for their work in organizing, promoting and
             conducting public forums to present information and receive feedback
             regarding the city's master plan.
12.   Public Comment on Non-Agenda items

         •   Reminder: Individuals who would like to address the City Commission
             shall do the following:

         •   Fill out a request to speak form attached to the agenda or located in the
             back of the room.

         •   Submit the form to the City Clerk.

         •   Be recognized by the Chair.

         •   Step forward to the microphone.

         •   State name and address.

         •   Limit of 3 minutes to address the Commission

         •   (Speaker representing a group may be allowed 10 minutes if previously
             registered with City Clerk.)
      Public comments were received.
13.   Closed Session
14.   Adjournment
      The City Commission meeting adjourned at 6:23 p.m.
      Motion by: Commissioner Ramsey
      Second by: Commissioner Emory




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                    MOTION PASSES




        _________________________
               Respectfully Submitted,
    Ann Marie Meisch, MMC - City Clerk




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