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CITY OF MUSKEGON
CITY COMMISSION MEETING
JUNE 28, 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, June 28, 2016.
Pastor Tim Cross, Living Word 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, Byron Turnquist, and Ken
Johnson, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
2016-53 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the June 10, 2016 Special City
Commission Meeting, June 13, 2016 Worksession Meeting, and the June 14, 2016
Regular City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
D. Community Relations Committee Recommendation City Clerk
SUMMARY OF REQUEST: To concur with recommendations from the Community
Relations Committee to appoint Barbara VanFossen to the District Library Board.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with recommendations.
E. Interview Room Audio & Visual Recording Device Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the amount of $15,361.00 for an audio & visual recording
device for the Detective Bureau interview room. This recording system, with
needed attachments, accessories, and backend storage server, will replace the
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current out-of-date recording system. This upgrade will also assist the Muskegon
Police Department to be in compliance with the Audio Recording of Custodial
Interrogations ~ Public Act 479 of 2012. The equipment enhancement should be
completed by August 15, 2016. *This equipment is a sole source purchase which
is compatible with the L3 Communications Dash Cam system in our patrol
vehicles.
FINANCIAL IMPACT: N/A – Budgeted.
BUDGET ACTION REQUIRED: Equipment was budgeted in the 215/2016
(amended) budget cycle to support the equipment upgrade (Police Forfeiture
Fund).
STAFF RECOMMENDATION: Staff recommends approval of this equipment
purchase to update & enhance essential audio & visual recording during
criminal investigations.
F. Backhoe Purchase DPW/Equipment
SUMMARY OF REQUEST: Authorize staff to purchase one (1) Michigan Cat
Backhoe from Michigan Caterpillar, the Mi Deal State Contract holder. This
machine will replace the 2000 model that we will retire from service.
FINANCIAL IMPACT: $111,000 on State Contract.
BUDGET ACTION REQUIRED: None. Amount is within what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase one (1) Michigan Cat
Backhoe from Michigan Caterpillar, the Mi Deal State Contract Holder.
G. Fuel System Upgrade DPW/Equipment
SUMMARY OF REQUEST: Authorize staff to purchase new Fuel Master Fuel
Dispensing Module and Fuel pumps from Van Manen Petroleum Group. This is
the second phase of our upgrade that started last year when our monitoring
and leak detections system failed requiring emergency repairs to keep us
compliant with DEQ regulations. This purchase is product exclusive to the
previous repairs done last year due to the age of our system; we are reaching
the point where it is getting hard to find replacement parts for our pumps. With
the Police and Fire as well as DPW staff fueling at our facility it would not be
good for our pumps to be down for an extended period of time.
FINANCIAL IMPACT: $23,000.00
BUDGET ACTION REQUIRED: None. Amount is what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase new Fuel Master
Module and Pumps.
H. New Plow Truck DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
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purchase one new plow truck from West Michigan International the State Mi-
Deal contract holder.
FINANCIAL IMPACT: $84,292.85
BUDGET ACTION REQUIRED: None. This is the amount budgeted for.
STAFF RECOMMENDATION: Authorize staff to purchase (1) one new plow
truck from West Michigan International, LLC.
K. Vinyl Siding Supplier Contract for Fiscal Year 2016 Community and
Neighborhood Services
SUMMARY OF REQUEST: To authorize Community and Neighborhood Services to
enter a new contract with Keene Lumber Company to be the Vinyl Siding
Supplier for 2016 Fiscal Year. Keene Lumber has agreed to honor the existing
contract price of $46.95 per building square for standard siding and $85.00 per
building square for premium siding.
FINANCIAL IMPACT: Funding will be disbursed from the 2016 Community
Development Block Grant Vinyl Siding fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the request.
COMMITTEE RECOMMENDATION: The funding for the Vinyl Siding Program
was approved by the Citizens District Council during the 2016 CDBG Grant
process.
L. Vinyl Siding Installer Contracts for Fiscal Year 2016 Community and
Neighborhood Services
SUMMARY OF REQUEST: To authorize Community and Neighborhood Services to
enter a new contract with JR Tucker Construction to install vinyl siding at an
agreed price of $52.00 per building square for the Vinyl Siding Program’s 2016
fiscal year.
FINANCIAL IMPACT: Funding will be disbursed from the July 1, 2016 – June
30, 2017 Community Development Block Grant Vinyl Siding fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the request.
COMMITTEE RECOMMENDATION: The funding for the Vinyl Siding Program
was approved by the Citizen’s District Council during the 2016 CDBG Grant
process.
M. Sewer Rate Adjustment Finance Director
SUMMARY OF REQUEST: Prior to 2015, there had not been a sewer rate increase
since 2010. The 2015 sewer rate resolution that was adopted has not adequately
addressed the needs of the sewer fund. Accordingly, we are asking the City
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Commission to rescind the sewer rate resolution that was adopted in 2015 and
now approve a new resolution with a treatment rate for our customers that is
based on a multiplier of 1.49 times the rate the county bills the City for
wastewater treatment.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time. The proposed rate change was
incorporated into the FY 2016-17 budget that was recently approved by the City
Commission.
STAFF RECOMMENDATION: Adoption of the fee adjustment resolution.
Motion by Commissioner Johnson, second by Commissioner Turnquist, to
approve the Consent Agenda as presented with the exception of Items B, C, I, J,
and N.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
2016-54 ITEMS REMOVED FROM THE CONSENT AGENDA:
B. Gaming License Request from Muskegon Polish Festival City Clerk
SUMMARY OF REQUEST: The Muskegon Polish Festival is requesting a resolution
recognizing them as a non-profit organization operating in the City for the
purpose of obtaining a Gaming License.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Warren, second by Commissioner German, to approve
a resolution for the Muskegon Polish Festival for the purposes of obtaining a
Gaming License.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
C. Approval of Resolution Regarding Precinct Boundary Adjustments
City Clerk
SUMMARY OF REQUEST: To approve a resolution to allow for the adjustment of
precinct boundaries in precincts 5 and 7. Terrace Point Circle did not exist when
the current precinct boundaries were decided. Terrace Point Circle is currently
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sitting in two precincts with no natural boundary. Further adjustments will be
made to this area to include the voters on Viridian Drive, the natural boundary
used for the new precinct division is the census block where the properties are
located. Voters registered on Viridian will have a new polling place of City Hall
effective January 1, 2017 if the resolution is approved. Changes to Terrace Point
Circle will become effective immediately.
FINANCIAL IMPACT: None.
BUDGET ACITON REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution.
STAFF RECOMMENDATION: To concur with recommendations.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the resolution adjusting precinct boundaries in precincts 5 and 7.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
I. Plow Truck Build DPW/Equipment
SUMMARY OF REQUEST: Authorize staff to allow Arista Truck Systems to build two
new Plow trucks, the lowest qualified bidder.
FINANCIAL IMPACT: $111,224.00
BUDGET ACTION REQUIRED: None. Amount is within what was budgeted.
STAFF RECOMMENDATION: Authorize staff to allow Arista Truck Systems to
build two new Plow trucks, the lowest qualified bidder.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to authorize staff to allow Arista Truck Systems to build two new Plow trucks, the
lowest qualified bidder.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-
Sybenga, and Turnquist
Nays: None
MOTION PASSES
J. A & E Barbecue Concession Contract for City of Muskegon Parks
Department of Public Works
SUMMARY OF REQUEST: Staff is asking permission to enter into a 1-year
contractual agreement with Eric Jewel of A & E Barbecue LLC, at Pere
Marquette Park, located within the City of Muskegon, to sell various Barbecue
items from a mobile “smoker on wheels”.
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FINANCIAL IMPACT: Concession revenue is 10% of gross receipts
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize DPW staff to enter into concession
agreement with Eric Jewel of A & E Barbecue LLC.
Motion by Commissioner German, second by Commissioner Warren, to
authorize staff to enter into concession agreement with Eric Jewel of A & E
Barbecue, LLC.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
N. Reese Field Management Agreement Department of Public Works
SUMMARY OF REQUEST: Authorize the Mayor and City Clerk to execute the
“Reese Field Soccer Facility Management Agreement” with Sailors Soccer Club
DBA, West Michigan Storm Soccer Club (WMSSC).
FINANCIAL IMPACT: West Michigan Storm Soccer Club will expand the
operations of this facility and will invest in improvements to the facility.
BUDGET ACTION REQUIRED: None. The contract will offer savings in
maintenance costs for the City and create opportunities for capital
improvements by WMSSC that the City is unable to accomplish at this time.
STAFF RECOMMNEDATION: Approve request.
Motion by Commissioner Warren, second by Commissioner Johnson, to
authorize the Mayor and City Clerk to execute the “Reese Field Soccer Facility
Management Agreement” with Sailors Soccer Club DBA, West Michigan Storm
Soccer Club.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
2016-55 PUBLIC HEARINGS:
A. Public Hearing – Request to Create a New Neighborhood Enterprise
Zone District at 285 W. Western Avenue Planning and Economic
Development
SUMMARY OF REQUEST: Pursuant to Public Act 147 of the Michigan Public Acts
of 1992, the developer of the Highpoint Flats project has requested to create a
new Neighborhood Enterprise Zone (NEZ) district for the parcel at 285 W.
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Western Avenue. Properties located in NEZ districts are eligible to apply for NEZ
certificates, which will lower the residential property taxes on new or rehab
construction. The State requires that notices are to be sent to the local taxing
jurisdictions regarding the request and that the resolution may not be passed
until after 60 days of the notice letters being sent. Also, a public hearing must be
held no more than 45 days after the notice is sent. Notices were mailed on June
20, 2016. The resolution is planned to come back in front of the City Commission
on August 23, 2016. This project will include between 49-61 apartment units with
first floor retail and/or office space. The NEZ will only affect the residential
component of the project. The City is allowed to designate up to 15% of its total
area as NEZ designations, which calculates out to 2.802 square miles. We
currently have 2.06 square miles designated as NEZ districts. This new district
would only add 0.0004 square miles for an overall total of 2.0604 square miles of
designated NEZ district in the City.
FINANCIAL IMPACT: For those properties that are approved for a NEZ
Certificate, taxation will be levied using half of the State average of millages of
local entities.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the new NEZ district.
PUBLIC HEARING COMMENCED: NO PUBLIC COMMENTS RECEIVED.
Motion by Commissioner Warren, second by Vice Mayor Hood, to close the
public hearing.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
2016-56 NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
330 Washington
1592 5th Street
1761 S. Getty Street
1363 7th Street
1524 Hoyt 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 thirty (30)
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days or infraction tickets may be issued. 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 contracts 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: CDBG or General Funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Vice Mayor Hood, second by Commissioner German, to concur with
the Housing Board of Appeals decision to demolish.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
B. Skate Park Fund Agreement City Manager
SUMMARY OF REQUEST: The City Commission’s 4th Quarter Budget Reforecast
for FY2015-2016 included a $10,000 expenditure for improvements to the Skate
Park at Syferth Park. Staff is requesting permission to utilize those dollars to
establish a fund at the Community Foundation for Muskegon County to allow for
additional contributions to be made by interested community members.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Non-Profit Support Services
Agreement with the Community Foundation for Muskegon County, and
authorize the Mayor to sign.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the Non-Profit Support Services Agreement with the Community Foundation for
Muskegon County, and authorize the Mayor to sign.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
C. LC Walker Arena Lease Agreement City Manager
SUMMARY OF REQUEST: As the City continues to manage the LC Walker Arena,
staff’s top priorities are to reduce or eliminate General Fund subsidies and
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strategically improve the arena in a manner that provides for more frequent use
and higher-quality experience for tenants and event attendees. The greatest
way to accomplish this is to add value in ways that do not disrupt ice utilization,
which is the facility’s greatest revenue source. Accordingly, staff is proposing a
lease agreement and corresponding development agreement with West
Michigan Rum Company, LLC, to provide for the buildout and leasing of
approximately 5,000 square feet of space in the concourse area of the Arena,
adjacent to the corner of Western Avenue and 4th Street. The West Michigan
Rum Company will operate a distillery and restaurant in this space that will
occupy the Western Avenue side of the building and add to the food and
beverage opportunities in the LC Walker Arena on event days. The lease has an
initial 5 year term with nine three-year extension options. Rent shall be $10.00 per
square foot – or approximately $4,166.66 per month initially.
FINANCIAL IMPACT: Development costs are estimated between $300,000
and $350,000. Annual rental income is estimated at $50,000.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To authorize staff to sign the agreements and
begin the due diligence period as outlined in the Development Agreement.
Motion by Commissioner Johnson, second by Commissioner German, to
authorize staff to sign the agreements and begin the due diligence period as
outlined in the Development Agreement.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission adjourned at 7:10 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk
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