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CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 24, 2016
CITY COMMISSION CHAMBERS @ 5:30 P.M.
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, May 24, 2016.
Pastor Matthew Sharpe, Evanston Avenue Baptist 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 Gawron, Vice Mayor Eric Hood, Commissioners Debra
Warren, Willie German, Jr., Dan Rinsema-Sybenga, and Byron Turnquist, City
Manager Franklin Peterson, City Attorney John Schrier, and City Clerk Ann
Meisch.
Absent: Commissioner Ken Johnson
2016-42 INTRODUCTIONS/PRESENTATION:
A. Presentation to Jaylyn
There is a young girl that is a resident of the City of Muskegon who has been
diagnosed with a very serious illness. Jaylyn has been very brave in the face of
much adversity and was recognized at the meeting for her bravery.
B. MAISD Superintendent, John Severson, Presentation Regarding
Muskegon Promise
John Severson, MAISD Superintendent, presented information to the Commission
regarding the Muskegon Area Promise – a scholarship program that will fund
either a certificate program, a two-year Associate’s Degree or the first two years
of a Bachelor’s Degree at Muskegon Community College or Baker College of
Muskegon.
2016-43 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY REQUEST: To approve minutes of the May 9, 2016 Worksession
Meeting and the May 10, 2016 Regular City Commission Meeting.
FINANCIAL IMPACT: None
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BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Fireworks Display Permit for the 2nd of July Celebration at Heritage
Landing City Clerk
SUMMARY OF REQUEST: Night Magic is requesting approval of a fireworks
display permit for July 2nd at Heritage Landing. Fire Marshall Metcalf has
reviewed the request and recommends approval contingent on inspection of
the fireworks.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval contingent on inspection of the
fireworks and approval of insurance.
C. 2016-2017 Michigan Municipal League Membership Dues City Clerk
SUMMARY OF REQUEST: Approval to pay the 2016-2017 MML dues in the
amount of $9,676. This is an increase of $29.
FINANCIAL IMPACT: MML Dues $8,796
Legal Defense Fund $ 880
Total $9,676
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval.
D. 2016-2017 Muskegon High School Community Officer Agreement
Public Safety
SUMMARY OF REQUEST: To approve the 2016-2017 Muskegon High School
Community Officer Agreement. This agreement provides Muskegon High School
with a Community Officer during the nine months school is in session.
FINANCIAL IMPACT: Muskegon Public Schools agrees to pay the City of
Muskegon $2,388.10 each month, from September 2016 through May 2017,
totaling $21,492.90.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the 2016-2017 Muskegon High School
Community Officer Agreement.
E. 2016-17 Healthcare & Wellness Program Finance Department
SUMMARY OF REQUEST: It is time to renew the City’s healthcare coverage for
2016-17 plan year (6/1/16 – 5/31/17). Renewal premiums for the City’s current
healthcare program came in at a 7% increase over the current year. Last year
we experienced an increase of 9.9%. In comparative terms, many employers
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have been experiencing sharp double-digit rate increases for several years.
Also, the City’s healthcare costs remain below the “hard cap limits” set by PA
152 and remain cost competitive with the standards set by the state for new
hires. These are good independent indicators that the City’s program is cost-
effective.
Starting June 1, 2016, the deductible will be increased from $2,000 for an
individual and $4,000 for double/family to $2,500 for an individual and $5,000 for
double/family. In addition, the coinsurance will change from 80/20% to 70/30%
effective June 1, 2016.
For 2016-17, the City will continue to pay the HRA deductible if the employee
and spouse completed the wellness requirements by March 31st; non-
participants in the wellness program will continue to pay the first $500
(single)/$1,000 (double/family) of the deductible.
FINANCIAL IMPACT: Following is an estimate of gross premium costs for the
Priority Health HMO Program compared with the current healthcare plan year:
Full-time City employees pay 10% of the above premium costs through payroll
deduction.
BUDGET ACTION REQUIRED: Employee and retiree healthcare costs will be
included in the forthcoming 2016-17 budget.
STAFF RECOMMENDATION: Authorize staff to execute documents with Priority
Health to renew employee healthcare coverage for the coming year.
F. Consideration of Bids for: Repairs to the Boardwalk at Kruse Park
Engineering
SUMMARY OF REQUEST: To authorize staff to enter into a minor repairs contract
(no bonds) with Midwest Builders LLC, for a total estimated bid of $19,450 since
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they were the lowest responsible bidder.
FINANCIAL IMPACT: The construction cost of $19,450 plus engineering costs.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Authorize staff to enter into a repairs contract
with Midwest Builders for an estimated price of $19,450.
I. Midtown Square – Authorization for Staff to Negotiate and Close on Sale
of Homes Planning & Economic Development
SUMMARY OF REQUEST: Construction of the Midtown Square Homes has been
completed for four homes and is being completed for five homes. There have
been several showings and one purchase offer to date. As it is necessary to
move quickly on the sales negotiations, staff is requesting that the Director of
Community & Economic Development and/or the Zoning Administrator/Planner
III be authorized to sign the purchase agreements and closing documents for
the homes, as determined by the final negotiated purchase price.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To authorize the Mayor and Clerk to sign the
resolution authorizing the Director of Community & Economic Development
and/or the Zoning Administrator/Planner III to sign purchase agreements and
closing documents for the Midtown Square homes at a price to be determined
by the City Manager.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the Consent Agenda as presented with the exception of Items G, H,
and J.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Gawron, and
Hood.
Nays: None
MOTION PASSES
2016-44 ITEMS REMOVED FROM CONSENT AGENDA:
G. Authorization of Community Housing Development Organization
(CHDO) Agreements Community & Neighborhood Services
SUMMARY OF REQUEST: To direct the Mayor and City Clerk to sign the 2015
approved agreements for the City’s Community Housing Development
Organization reserve and operating funds. The City Commission approved a
budget of $100,000 to Community Housing Development Organization
nonprofits last spring during the City’s annual Action Plan process.
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1. Community enCompass $85,000
2. Habitat for Humanity $22,000*
*Includes city HOME funding
After the Mayor and Clerk sign the contracts, the CNS office will retain one copy
for our files and a copy will be supplied to the appropriate nonprofit for their
records.
FINANCIAL IMPACT: Funding will be allocated from the 2015 HOME
program.
BUDGET ACTION REQUIRED: The City Commission made budgeting allocation
decision last year.
STAFF RECOMMENDATION: To direct Mayor and Clerk to sign agreements.
COMMITTEE RECOMMENDATION: Citizen District Council approved.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to direct the Mayor and Clerk to sign agreements.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Gawron, Hood, and
Warren.
Nays: None
MOTION PASSES
H. Approval of Neighborhood Enterprise Zone Certificates Planning &
Economic Development
SUMMARY OF REQUEST: The City is applying for Neighborhood Enterprise Zone
(NEZ) certificates for the construction of the Midtown Square Homes at:
294 Monroe Ave 300 Monroe Ave 308 Monroe Ave
314 Monroe Ave 320 Monroe Ave 333 Houston Ave
339 Houston Ave 345 Houston Ave 349 Houston Ave
The State Tax Commission allows applicants to apply for an NEZ Certificate up to
six months after construction commencement if the local unit of government is
willing to approve. The estimated cost for construction for the homes is:
294 Monroe Avenue - $172,640 300 Monroe Avenue - $161,605
308 Monroe Avenue - $193,670 314 Monroe Avenue - $173,000
320 Monroe Avenue - $182,420 333 Houston Avenue - $172,875
339 Houston Avenue - $182,260 345 Houston Avenue - $162,290
349 Houston Avenue - $172,115
The City plans on transferring the NEZ certificate to the buyer once the property
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is sold.
FINANCIAL IMPACT: Taxation will be 50% of the State average for the next
12 years.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the NEZ certificate.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the NEZ Certificates.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Gawron, Hood, Warren, and
German.
Nays: None
MOTION PASSES
J. Muskegon City Employee Homeownership Program Planning &
Economic Development
SUMMARY OF REQUEST: It is important to encourage the City employees to live
in the City of Muskegon and enjoy the benefits of homeownership, when
feasible. In addition, the City has invested time and money into eliminating
blight and restoring central city neighborhoods. In keeping with both of these
objectives, a “Muskegon City Employee Homeownership Program” is proposed.
City employees purchasing a home within the City will be eligible for up to $500
toward a down payment, as well as the possibility of a forgivable loan, from
$1,500 to $4,500 depending on the neighborhood where the home is
purchased.
FINANCIAL IMPACT: For employees meeting the condition of the “Program”,
the City will provide a $500 match toward a down payment on a home, with the
possibility of an additional $1,500 to $4,500 forgivable loan, depending on the
neighborhood where the home is located.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the “Muskegon City Employee
Homeownership Program” and authorize staff to implement the program and
provide to City employees purchasing a home in the City a down payment
match up to $500, as well as the possibility of a $1,500 to $4,500 forgivable loan,
depending on neighborhood where the home is located.
Motion by Commissioner Turnquist, second by Vice-Mayor Hood, to approve
the “Muskegon City Employee Homeownership Program.”
Motion by Commissioner Turnquist, second by Commissioner Warren, to amend
the motion by striking – “depending on neighborhood where the home is
located” in the description – effectively expanding the ownership program City
wide.
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ROLL VOTE: Ayes: Turnquist
Nays: Gawron, Hood, Warren, German, and Rinsema-Sybenga
MOTION FAILS
VOTE ON ORIGINAL MOTION
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, and Rinsema-Sybenga
Nays: Turnquist
MOTION PASSES
2016-45 PUBLIC HEARINGS:
A. Create a Special Assessment District for Alley Between 4th – 5th –
Muskegon – Webster Engineering
SUMMARY OF REQUEST: To hold a public hearing on the proposed special
assessment for the Alley between 4th – 5th – Muskegon – and Webster, and to
create the special assessment district and appoint two City Commissioners to
the Board of Assessors if it is determined to proceed with the project.
The request is the result of a petition for paving which was signed by the majority
of the property owners abutting the aforementioned alley. It is also worth
mentioning that the “estimated cost figures previously shared with the owners
($28,207), via the notification of this hearing, is expected to rise substantially
(more than 20%) due to higher bid prices.
FINANCIAL IMPACT: About $35,000, which is expected to be assessed to
abutting property owners, including the City.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To create the special assessment district and
assign two City Commissioners to the Board of Assessors by adopting the
resolution.
PUBLIC HEARING COMMENCED:
Rick Boyden, resides in Norton Shores, Treasurer of Temple of Israel – opposed
Kevin Huss, 421 W. Webster – opposed
Millie Richardson, 362 W. Muskegon – in favor but asking to waive engineering
costs.
Motion by Commissioner German, second by Commissioner Warren, to close
the Public Hearing and to create the special assessment district and to assign
two City Commissioners to the Board of Assessors by adopting the resolution in
regards to the paving of the alley between 4th – 5th – Muskegon – and Webster.
ROLL VOTE: Ayes: Warren
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Nays: Gawron, Hood, German, Rinsema-Sybenga, and Turnquist
MOTION FAILS
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to close the public hearing.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist, and
Gawron
Nays: None
MOTION PASSES
2016-46 NEW BUSINESS:
A. Consideration of Bids for Paving of the Alley Between 4th – 5th –
Muskegon – Webster Engineering
SUMMARY OF REQUEST: To award the Alley paving project to McCormick Sand,
Inc. since they were the lowest responsible bidder with a total bid price of
$32,825.
This award, if approved, should be contingent upon the creation of the special
assessment district for this project.
FINANCIAL IMPACT: The construction cost of $32,825 plus engineering cost
of an additional 15%.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Award the contract to McCormick Sand for a bid
price of $32,825 if the special assessment district is created.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
reject all bids for the alley paving for 4th – 5th – Muskegon – and Webster as the
creation of the special assessment district was rejected.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Gawron, and
Hood.
Nays: None
MOTION PASSES
B. Parkland Muskegon – City Property Agreements Planning & Economic
Development Department
SUMMARY OF REQUEST: The City of Muskegon entered into a development
agreement with Parkland Muskegon, LLC on September 4, 2007. The
Development Agreement was amended on March 26, 2013. It is now requested
to enter into a Second Amendment to the Development Agreement. The
Second Amendment removes Parkland’s requirement to construct 24 new
market housing units on the property adjacent to High Point Flats, and includes
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the sale of this property to the City, on the condition that the City builds a
parking lot within twelve months of closing on the property. The parking lot will
be available for the properties on the block, including High Point Flats and
Ameribank. High Point Flats will be responsible for 60% of the annual costs
related to the parking lot (and Ameribank will be responsible for 40%). In
addition, Parkland is required to complete the exterior renovation of High Point
Flats by June 30, 2017, as well as “use reasonable efforts” to complete the
interior renovation by June 30, 2017 (which includes constructing 48 market rate
housing units).
FINANCIAL IMPACT: The purchase price to the City for the property
adjacent to High Point Flats is $1.00. In addition, a special assessment in the
amount of $121,330.00 will be placed on the December 2016 property tax bill for
High Point Flats. If $3 million is spent by Parkland between the signing of the
Development Agreement and June 30, 2017, the City will not exercise its rights to
collect the special assessment and it will be discharged and deemed paid in
full.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the “Agreement” between the City
of Muskegon and Parkland Muskegon, LLC, as well as the “Second Amendment
to Development Agreement” between the City of Muskegon and Parkland
Muskegon, LLC, and authorize the Mayor and Clerk to sign all necessary
documents, including closing documents at the time of sale. In addition,
authorize staff to work with the City Attorney to develop “Exhibit B” and include
that in the final “Second Amendment to Development Agreement”.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve the “Agreement” between the City of Muskegon and Parkland
Muskegon, LLC as well as the “Second Amendment to the Development
Agreement” between the City of Muskegon and Parkland Muskegon, LLC and
authorize the Mayor and Clerk to sign all necessary documents, including
closing documents at the time of sale. In addition, authorize staff to work with the
City Attorney to develop “Exhibit B” and include that in the final “Second
Amendment to Development Agreement”.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Gawron, Hood, and
Warren.
Nays: None
MOTION PASSES
C. Ameribank Building – Option Agreement between the City of
Muskegon and Port City Construction & Development Services, LLC
Planning & Economic Development
SUMMARY OF REQUEST: The City issued a Request for Proposal for the former
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Ameribank Building at 800 First Street. One viable proposal was received by the
deadline of March 31, 2016. Staff has met with the proposed purchaser and an
Option Agreement has been prepared between the parties. The term of the
Option is through October 1, 2016, with an extension possible through January 1,
2017. The option is for 800 First Street, which will be returned to production use as
a mixed-use commercial and residential development. The purchase price is
$1.00, plus a total earnest money deposit of $20,000 (to be returned to the
purchaser upon completion of the project). In addition, the City will offer a loan
of $100,000 in support of the project. The City will develop surface parking on
adjacent lots (208 & 216 Clay Avenue). The parking will be shared with other
developments on the block, with 40% of the maintenance costs to be paid by
the purchaser.
FINANCIAL IMPACT: Although the purchase price for the building is minimal,
the building will be renovated and put back into production use and its
occupants will generate taxes for the City in the future.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Option Agreement between the
City of Muskegon and Port City Construction & Development Services, LLC and
authorize the Mayor and Clerk to sign all necessary documents, including
closing documents at the time of sale.
Motion by Commissioner Warren, second by Commissioner German, to approve
the Option Agreement between the City of Muskegon and Port City Construction
& Development Services, LLC and authorize the Mayor and Clerk to sign all
necessary documents, including closing documents at the time of sale.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Gawron, Hood, Warren, and German.
Nays: None
MOTION PASSES
ANY OTHER BUSINESS:
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission adjourned at 7:16 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk
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