Legislative Policy Committee Packet 08-24-2022

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                                WEDNESDAY, AUGUST 24, 2022
                                           5:30 P.M.
                                          ROOM 204
                                    MUSKEGON CITY HALL
                                     933 TERRACE STREET
                                    MUSKEGON, MI 49440


       I.      Call to Order

       II.     Approval of Minutes for May 25, 2022

       III.    Old Business

       IV.     New Business

               1) Legislative Summary – Pete Wills
               2) Flag Policy – Ann Meisch
               3) Commission Meetings – Call-In Option & Zoom Option for Non-Televised Meetings
                  Upon Request – Ken Johnson
               4) Consideration of Requests from Grand River Bands of Ottawa Indians – Ken Johnson

       V.      Adjourn

Notice dated 8/22/2022

Cc: MLive/Chronicle
City Commissioners

ADA POLICY: The City of Muskegon will provide auxiliary aids and services to individuals who wish to
attend the meeting upon twenty-four-hour notice to the City of Muskegon. Please contact Ann Marie
Meisch, City Clerk, at 933 Terrace Street, Muskegon, MI 49440 or via telephone 231-724-6705: dial 7-1-1
to request connection with 231-724-6705.
                                                          State / Federal Report, August 2022

     State Policy Issues
 Bill #     Sponsor          Detail                                                                                                     Status                  Position
HB 4129     Marino           Requires Secretary of State to post a list of local clerks who are not current with continuing election    3/9/22 Passed House;    MML opposed
                             education training on Department of State website.                                                         Senate Elections Comm
HB 4530-   Calley, Filler,   Bills would combine May & Aug elections into a June election; January 2023 effective date                  4/27/21 Passed          MML/Clerks
            Whitesett,                                                                                                                                          Assn/Sec of
 4531-                                                                                                                                  House; Senate
                Puri                                                                                                                                            State support
 4532-                                                                                                                                  Elections Comm
HB 4722    Lightner,         Would define Short Term Rentals (STR) as residential uses of property and restricts municipality's         10/27/21 Senate Reg     MML opposed
 SB 446     Nesbitt          ability to regulate them. Mandates all STRs are a by-right residential use of property, permitted in all   Reform; SB 446 Senate
                             residential zones. Cannot be subject to a special use or conditional use permit, or any procedures         Floor
                             different from those required for other dwellings in the same zone. Bill would eliminate ability to
                             inspect STRs unless inspecting all dwellings in that zone, including owner-occupied.
HB 4985    Damoose           Short Term Rental compromise; see below                                                                    6/15/21 House           MML support
HB 5054      Albert          Municipal pension proposal                                                                                 3/2/22 Senate Approp    MML support
39-bills                     Senate Elections Package – Senate GOP package addresses concerns with election security,                   6/16 SB 285, 303, 304   MML support
                             operations and access. MML supports SB 278-300. SB 273 and 278 – requires SOS to sign off on               passed Senate. SB 273   SB 278-300
                             design/const of drop box, and makes it illegal to drop off a ballot for another voter unless from same     and 278 passed House
                             family.                                                                                                    comm 5/24/22
  SB 5       Wojno           Modifies the number of days fireworks are permitted per year and increases penalties for violations        1/13/21 Senate          MML support
                             of the Michigan Fireworks Safety Act. Local unit with pop density of over 3400 per sq mile may enact       Regulatory Reform
                             ordinance that regulates fireworks except on News Year Eve, Memorial Day, July 4, Labor Day

 SB 473-    Victory,   12-bill bi-partisan package to address police accountability and reform across law enforcement   5/25/21 introduced      TBD
   484       Chang     agencies. MCOLES to develop guidelines/policies for investigations of officer-involved deaths
 SB 1046,    Wojno,    Governor’s Retirement Tax Phase-Out Plan introduced 5/25/22                                      Bills intro’d 5/25/22
 HB 6117     Garza
SB 360-     Multiple   Employer-supported housing credit; Attainable Housing & Rehab; Re-establish Construction Code    SB 360-364, 422, 432    MML, Home
364, 422,   Senators   Promulgation Committee; Expand NEZ’s to Additional Local Gov Units; Residential Facilities       6/17/21 House           Builders, GR
432                    Exemption; Allow PILOTs for Housing; Community Land Trusts                                                               Chamber
HB 4649-    Multiple   Employer-supported housing credit; Attainable Housing & Rehab; Re-establish Construction Code    House Comm since        MML, Home
50, 4647-    Rep’s     Promulgation Committee; Expand NEZ’s to Additional Local Gov Units; Residential Facilities       4/2021                  Builders, GR
49, 4827,              Exemption; Allow PILOTs for Housing; Community Land Trusts                                                               Chamber

                                  FALL GENERAL ELECTION, NOVEMBER 8, 2022

   • Democrat Party candidate –
      Gov. Gretchen Whitmer

    •   Republican Party candidate –
        Tudor Dixon – Norton Shores businesswoman and media personality

U.S. House (new 3rd Congressional District map)
    • Includes nearly two-thirds of Kent County; half of Ottawa; along with a third of Muskegon Co, including
       the City of Muskegon.
    • Republican candidate – John Gibbs, political commentator
    • Democrat candidate – Hillary Scholten, former DOJ attorney and Grand Rapids native

Michigan Senate (new 32nd Senate District map)
   • Include nearly all of Muskegon County, except townships in the SE portion of the county; Oceana County,
       Mason County, portion of Manistee County, and Benzie County
   • Republican Candidate – current Sen. Jon Bumstead
   • Democrat Candidate – current Rep. Terry Sabo

Michigan House – (new 87th state House District map)
   • Includes Muskegon and Muskegon Heights, N. Muskegon, and rural areas north of North Muskegon along
       the shore and east along M-120 to Twin Lake.
   • Republican Candidate – Michael Haueisen
   • Democrat Candidate – Will Snyder


Legislative Term Limits reform
    • Voters for Transparency and Term Limits: The ballot measure would amend the state constitution to
         reduce the maximum length a lawmaker can serve in the Legislature from 14 years to 12 years, but would
         allow them to serve the full tenure in one chamber. Currently, lawmakers can serve up to six years in the
         Michigan House and eight years in the Senate.
    • The constitutional amendment would also require state lawmakers, the governor, the secretary of state
         and the state attorney general to disclose certain financial information, including: description of assets,
         sources of all forms of income, description of liabilities, positions held outside their elected office,
         arrangements regarding future employment, continuing benefits from former employers other than the
         state, and payments and gifts received from lobbyists.
    • If successful, it would be the first time since term limits was adopted by voters in 1992 that any changes
         to the constitutional amendment would have made a ballot.

•   Promote the Vote 2022 petition – The coalition of voting-rights groups seeks to amend the state constitution

        o   Allow nine days of early voting
        o   Publicly subsidize absentee ballots and a tracking system for the ballot location

        o   Continue to allow registered voters without a state ID to sign an affidavit attesting to their identity
        o   Allow public sources and charities to fund elections, subject to disclosure rules
        o   Allow voters to register for absentee ballots for all future elections
        o   Require ballot drop boxes for every 15,000 voters in a municipality
        o   Establish that post-election audits can only be conducted by state and local officials
        o   Require canvass boards to only certify election results based on the official vote counts

•   Reproductive Freedom for All Michigan – The measure would amend the state Constitution to make
    reproductive freedom a right, repealing a decades-old law that makes abortion a felony. The law was set to
    take effect after the U.S. Supreme Court last month struck down Roe v. Wade — a 1973 landmark case that
    offered federal protection for abortion. But a Michigan judge has issued an injunction blocking the state law
    from being enforced.

Legislative Session
    • There are two legislative session days scheduled before the General Election.
    • 9/21 and 9/28
    • Lame Duck – session days after the General Election

State Grants
    • MEDC – Revitalization and Placemaking (RAP) Grant Application
           o City is seeking a total of $11,000,000 from the RAP Program, to facilitate a total of $40,000,000 of
             project costs. RAP proceeds would be dispersed as follows, with a total of 9% of the funds
             dedicated to placemaking and 91% dedicated to real estate rehabilitation:

                       MKG-1 Lakeview Lofts Phase 2/3 ($5,000,000)
                       MKG-2 880 First Street Rehabilitation ($5,000,000)
                       MKG-3 Downtown Placemaking ($1,000,000)

    •   MEDC received a total of 185 RAP applications requesting approximately $500 million in awards. The MSF
        has $100 million available for the RAP program. No notifications have been provided to applicants yet.
        MED anticipates that RAP awards for all selected applications with fully committed financing will be
        announced following MSF board action in September. All applicants will be notified of award status by the
        end of September.

MKG-1 is a fully-designed and shovel-ready mixed use building with 100 apartment units. Many of the units are
small and meant to be affordable to 120% of the area median income. The site is a priority site for the City, and
the project will be the final phases of a multi-phased residential development that represented the City's first
major mixed use building in a number of decades. Once completed, MKG-1 will help ensure the financial viability
of the original completed phase of this project - which has significant financial investments from the City, the
community foundation, and the Michigan Strategic Fund. This project is a priority because it provides much-
needed housing opportunities and helps ensure the financial viability of the completed initial phase of the

MKG-2 is a city-owned structure. The structure had been vacant for more than 10 years prior to the city
purchasing it from a Canadian company in 2017. The building currently has no walls, and exists in a skeletal form.
The city completed an RFP for developers in 2020 and identified a Lansing-based developer to acquire and
renovate the structure. The project is now shovel ready. and the RAP Funding will complete the developer's
capital stack. This would be the city's first major development completed by a minority real estate developer.
This project is a priority because it provides much-needed housing opportunities while supporting a minority
developer. The building is also a blight that will soon require demolition by the city if the rehabilitation project
does not begin soon.

MKG-3 is a place making project. This project was selected to meet an ongoing coordinated goal of improving
accessibility and walkability of Downtown Muskegon. The project will include barrier-free widened sidewalks,
outdoor dining and gathering spaces, access to year-round public restrooms, new micro retail spaces, and greatly-
improved ADA accessibility to some of Muskegon's most-popular downtown facilities. These projects align with
the City's ongoing partnership with Disability West Michigan and address a number of key findings in a 10+ year
old settlement agreement with the US Department of Justice focused on improving accessibility throughout the
City. These projects are a priority because they provide improved accessibility to Muskegon's downtown
amenities and provide much-needed assistance to our local hospitality industry. The City Commission has
authorized $1,000,000 to match the RAP request of $1,000,000. This $2 Million placemaking project will have
immediate positive impacts on the entire downtown and the numerous businesses that surround the city's arena
and convention center, as well as improve the viability of the Muskegon downtown social district.

MI Spark Grant

•   Earlier this year, the MDNR announced the Michigan Spark Grant which provided a $65 million grant program
    to help local communities create, renovate or redevelop public outdoor opportunities for residents and
•   Program details – including application timeline and reporting requirements – are currently being defined.
    Eligible applicants must be local units of government or public authorities legally designated to provide public
    recreation, or regional or statewide organizations of such entities working together. Applications will launch
    later this fall. All projects must be completed by Dec. 31, 2026.
•   Individual grant amounts – ranging from a minimum of $100,000 to a maximum of $1 million – will be
    distributed in three rounds:
         o Round one: $15 million by the end of 2022.
         o Round two: $25 million in the spring of 2023.
         o Round three: $25 million in the summer of 2023.

$15M appropriation for Windward Pointe property, PFAS remediation activities to address groundwater,
drinking water, surface water and fishery resources.
• Developers and staff are nearing completion of the EGLE grant agreement documents to define the scope of
    the project.

$2.3M appropriation for Harbor 31 property
• Remediation of this Brownfield site will allow for transformational development to occur including offering a
    variety of housing options, creation of jobs, provision of senior care services, stimulation of economic
    development, creating greater public access to Muskegon Lake, and attracting new residents and visitors to
    the community.
• State grant funds will be used to remove soils contaminated with toxic or hazardous metals, including, but not
    limited to, mercury and arsenic, to replace the displaced soils with clean soils, and to reestablish or mitigate
    3.89 acres of wetland areas on a parcel or on contiguous parcels of land.

Reconnecting Communities Program
• Funding supports planning and capital construction grants, and technical assistance to reconnect communities
   divided by transportation infrastructure.
       o Planning Grants – up to $2M per project
       o Capital Construction Grants – no less than $5M per project
•   Funding is available until 2026; $50M each year for Planning Grants; ~$150M each year for Capital
    Construction Grants
•   Targeting 2023 Planning

Short Term Rentals (STRs)

•   HB 4722 past the House on 10/27/21 and is opposed by MML. The Senate may vote on the legislation this fall.
•   HB 4985 was introduced as “compromise” legislation and supported by MML. It has remained in the House
    since June 2021 and would do the following:
        o Local units could not ban STRs & would allow property owners to rent their property on limited basis.
        o Properties rented for more than 14 days per year could be regulated as commercial establishments in
            residential neighborhoods.
        o Preserves local control by allowing zoning ordinances to classify those rentals as either residential or
            commercial uses of property and allow local units to require a special-use or conditional-use permit
            for those houses.
        o Compromise Option 1 (HB 4985) Would define the number of days a property could be used as a STR
            and still qualify to be regulated as a residential use rather than a commercial one.
        o Compromise Option 2 (SB 547) Would stop local units from banning STR properties and create a
            statewide registry. This bill has remained in the Senate since June 2021.

•   The "Good Neighbor Policy" legislation, House Bills 5465 and 5466 is supported by a coalition of organizations
    representing local government, public safety, the restaurant and lodging industry, economic development and
    more. The compromise legislation was initiated as an alternative to the harmful HB 4722. HB 5465 and 5466
    have remained in the House since October 2021.
        o HB 5466 would allow property owners the ability to rent their property for up to 30 days per year in
           all residential areas, while allowing for reasonable zoning regulations. The bill creates greater parity
           between requirements and regulations among the unregulated short-term rental enterprises and
           other “typical” hotel and motel lodging.
        o HB 5465 establishes the Short-term Rental Regulation Act that requires all short-term rentals and
           hosting platforms, like AirBnB or VRBO, to register the property with the state, allowing for improved
           awareness and regulatory enforcement. The properties are required to adhere to safety features,
           such as liability insurance, and on-site smoke and carbon monoxide detectors and fire extinguishers.
           Municipalities may enact reasonable regulations to protect health and safety, and proactively mitigate
           nuisance issues, such as noise, parking and traffic.

There are groups supportive of a statewide housing plan but are opposed STRs. The intent is strike a balance
between of allowing various housing types in communities.

MSHDA 6/1/22
   • Three new MSHDA programs addressing Michigan’s housing needs that are coming this summer and early
      fall. She said that approximately 40% of Michigan’s housing is over 50 years old.
   • One program scheduled to be implemented this month (June) will be to invest about $25,000 per house
      to help with energy efficiency and bring the quality of Michigan’s older housing stock up.
   • Second program, Missing Middle, should be rolled out by mid-summer, Hovey said. It will help subsidize
      housing for families making up to about $80,000, so they can afford to rent or put payments down on
      housing near their jobs.
   • Third program won’t hit until early fall; $50 million. Housing and Community Development Fund

    •   Plan released in couple weeks and implemented over next 5 years;
    •   Developing 75,000 new or rehabilitated housing units including 39,000+ affordable rentals and 13,500+
        homeownership opportunities for median and low-income households.

MSHDA MI-HOPE (Michigan Housing Opportunities Promoting Energy-Efficiency Program)
• CNS intends to use $150,000 in ARP funds to use as leverage to apply for this grant program.
• The MI-HOPE Program is intended to provide energy-efficiency activities that benefit area residents. It is
  funded through the US Department of Treasury American Rescue Plan (ARP) Coronavirus State and Local
  Fiscal Recovery Funds.
• The city will be applying for $1,000,000 in funding through this opportunity to be used for energy-efficiency
  repairs for homeowners in Muskegon County, in an effort to improve our areas housing stock and ensure
  healthier and safer homes for our neighbors.
• The $150,000 match will help support the administration of the grant and provide for an estimated additional
  6 major repairs to the citizens of Muskegon County. This match aligns with the requirements and available
  uses of the ARP funds.


Maritime Administration’s Port Infrastructure Development Program (PIDP)
• Staff continues to collaborate with Senator Gary Peters (D-MI) on legislation that would make cruise-related
   infrastructure/facilities eligible for grants. Under current law they are not. This initiative is supported by the
   American Great Lakes Ports Association.

The bill essentially does the following:

•   Requires the Secretary of Transportation to stand up a “Cruise ship-related infrastructure pilot program”
•   Allows the Secretary to spend up to 5% of annual PIDP funds on cruise ship-related port projects
•   Requires that cruise grants be awarded in a geographically equitable manner between regions of the United
•   Requires the same cost share as other PIDP grants (80/20)
•   Defines the same eligible entities as other PIDP grants (port authorities, cities, counties, states, etc.)

Allows cruise grants to be used for:
- construction/reconstruction of docks & berths
- environmental remediation or purchase of land
- purchase of equipment that will improve the safety, security and efficiency of loading or unloading or processing
of cruise passengers

                                 City of Muskegon
                                    Flag Policy

   I.    Purpose
         To provide a policy to fly flags on City owned or occupied property or

   II.   City Commission Consideration and Decision
         The flying of the United States of America, State of Michigan, the County
         of Muskegon, and the City of Muskegon flag are permissible and may be
         flown at City property as authorized by City staff.

         The flying of any other flag is not permissible. This includes flags from
         other countries, flags recognizing a cause, flags recognizing a festival,
         flags recognizing an ethnicity, etc.


This policy was adopted at a regular meeting of the City Commission, held on
________________________________. The meeting was properly held and
noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of
the Public Acts of 1976.

                                             CITY OF MUSKEGON

                                             Ann Marie Meisch, MMC, City Clerk
                                 CITY OF MUSKEGON
                           LEGISLATIVE POLICY COMMITTEE
                                Wednesday, May 25, 2022
                                       5:34 pm

Present: Commissioners St. Clair, Johnson, Ramsey, German, Gorman, and Emory.
Absent: Commissioner Hood.

Approval of Minutes
Commissioner Ramsey moved, Vice Mayor German seconded, to approve the minutes of
March 24, 2021.

                                                             MOTION CARRIED.

Critical Dune Ordinance – Mayor Johnson
Mike Franzak, Planning Manager, explained the history of the Critical Dunes ordinance since
the city took control in 2019 in an effort to speed up review times for applicants and reduce
fees. The amount of staff time, fees, and audits by EGLE have not provided the time and cost
savings the City was hoping to see. Staff recommends the permitting process revert back to

Social Media – Commissioner Ramsey
Commissioner Ramsey questioned if the City should have comments on the live stream. The
Commission discussed it in length and indicated the public livestream can indicate it is not
being monitored. For all other postings, an email address should be shared for people to reach
out with comments/questions.

Federal and State Legislative Updates – Pete Wills
Pete Wills reviewed the latest State/Federal bills that may impact the City.

Motion by Commissioner Ramsey, seconded by Commissioner St. Clair to adjourn the
meeting at 6:50 pm.

                                                                    MOTION CARRIED.

                                                   Ann Marie Meisch, MMC
                                                         City Clerk

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