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CITY OF MUSKEGON
CITY COMMISSION MEETING
NOVEMBER 22, 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, November 22, 2016.
Mayor Stephen J. Gawron, 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, Dan Rinsema-Sybenga, and Byron Turnquist, City
Manager Franklin Peterson, City Attorney John Schrier, and City Clerk Ann
Meisch.
Absent: Commissioner Willie German, Jr.
HONORS AND AWARDS:
A. Recognition of Fall 2016 Citizen’s Academy Graduates Public Safety
Citizens that participated in the Fall 2016 Citizen’s Academy were recognized by
the Director of Public Safety, Jeff Lewis, the Mayor, and the City Commission,
and were presented with resolutions commending them for their commitment.
INTRODUCTIONS/PRESENTATION:
Volunteers from the Muskegon Area Free Fit Club were recognized for their
dedication to the citizens of our community for their work to save the pavilion at
Joe Clifford’s Park.
2016-88 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the October 25, 2016
Regular City Commission Meeting and the November 7, 2016 Worksession
Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Approval of Revised Citizen Participation Plan, Specifically the Period
for Citizen Comments Community & Neighborhood Services
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SUMMARY OF REQUEST: To approve a revision of the Citizen Participation Plan
clarifying the length of time allowed for citizens to comment. The change would
reduce the number of days required for a formal comment period form 30 days
to either 15, 20, or 30 days.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request.
COMMITTEE RECOMMENDATION: Item was approved by the Citizen’s District
Council.
C. Sale of a Non-Buildable Vacant Lot at 1296 Lakeshore Drive
Planning & Economic Development
SUMMARY OF REQUEST: To approve the sale of a vacant, non-buildable lot at
1296 Lakeshore Drive to five different adjacent property owners (1487 High
Street, 1492 High Street, 1294 Lakeshore Drive, 1298 Lakeshore Drive, 1284
Lakeshore Drive). The lot is roughly 0.92 acres and is considered unbuildable
because of its location on a steep hill and the general intent of its zoning
classifications. It is zoned OSC, Open Space Conservation. These districts are
intended to provide for permanent open spaces in the community, and the
protection of sand dunes and other natural features, and are designed to
provide undeveloped recreational areas and to safeguard the health, safety,
and welfare of the citizens of Muskegon and adjacent areas by limiting
development in locations where police and fire protection, protection against
flooding by high water table or storm water, and dangers from excessive erosion
are not possible without excessive costs to the City. The property owners wish to
purchase the property to prevent any future development and to be able to
maintain the property. They have offered $8,000 plus the cost of the survey
($2,147) and all closing costs.
FINANCIAL IMPACT: The sale of this lot will generate additional tax revenue
for the City and will place the property back on the City’s tax rolls, thus relieving
the City of continued maintenance costs.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the lot sale request.
D. Request to Add Parcels to the City’s Existing Groundwater Ordinance –
SECOND READING Planning & Economic Development
SUMMARY OF REQUEST: The Commission previously approved the parcels to be
added to the groundwater ordinance regarding the former Mobil Oil Pipeline –
Sisson Avenue at McCracken Street, on August 23, 2016 (ordinance 2355).
However, the applicant listed the wrong parcels on the application, but they did
mail notices to the correct addresses. Staff is requesting to repeal ordinance
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2355 and replace it with a new ordinance with the correct parcels listed.
The ordinance prohibits the use of groundwater wells and secondary water
supplies under certain circumstances and in certain locations, to prevent
exposure to contaminated groundwater, as well as to prevent wells from
influencing the movement of contaminated water. Notice was sent to the
affected addresses prior to this meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the ordinance amendment to add
the additional 52 parcels.
E. Towing Contract Extension (Ramos Towing Services) Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the City
Commission review and consider approving a contract extension with our
current service provider, Ramos Towing. Currently, Ramos provides
towing/impoundment/storage service for the City of Muskegon.
Ramos Towing has been under authorized contract services for towing for the
last 3 years (01/14/14 to 01/14/17).
Ramos Towing is willing to extend towing services for one year (01/14/2017 to
01/14/2018) as allowed in the current contract.
FINANCIAL IMPACT: None – current contract language in effect.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of this extended
towing contract agreement for one year.
F. Wireless Internet at Muskegon Farmers Market City Clerk
SUMMARY OF REQUEST: Currently, the Farmers Market cannot connect to the
City of Muskegon’s network. Because of this issue, they are unable to have a
City of Muskegon email or use the programs currently available to other
employees. Currently they are using a much slower provider.
Connecting the market to the City’s infrastructure is a specialty service that few
can provide. The IT Department was able to receive a quote from MapleNet
Wireless to install the wireless link.
With this capability, we will be able to utilize our Cisco phone system and
eliminate a $293.44 monthly bill – a payback of approximately 2.5 years while
increasing our bandwidth tremendously.
This will not provide better wireless internet to the customers at the market but it
is a feature we will be reviewing in the future.
FINANCIAL IMPACT: None
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BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To authorize MapleNet to install a wireless link to
connect the Muskegon Farmers Market to City Hall and to select option two in
the amount of $8,914.29 based on the recommendation of the IT Department.
G. Two Entry Level Positions in IT Information Technology
SUMMARY OF REQUEST: Recently, our Database Administrator left for a new
position. Currently there are only two employees supporting over two hundred
city employees including City Hall, Police, Water Filtration, Fire Department,
Farmers Market, etc. as well as external agencies including the cities of North
Muskegon, Roosevelt Park, and Montague.
As such, the IT Department finds itself in a position to restructure the department.
The IT Department would like to move from an administrator position to two entry
level technical positions. One of the positions will be full-time and the other part-
time.
FINANCIAL IMPACT: The current salary of the Database Administrator is
$65,000. The proposed salary for a full-time technical position starts at $45,000
and the part-time wage will be hourly based on the same wages.
BUDGET ACTION REQUIED: None
STAFF RECOMMENDATION: To create two entry-level technical positions in
the IT Department.
Motion by Commissioner Turnquist, second by Vice Mayor Hood, to approve the
Consent Agenda as presented.
ROLL VOTE: Ayes: Gawron, Hood, Warren, Rinsema-Sybenga, Turnquist, and
Johnson
Nays: None
MOTION PASSES
2016-89 PUBLIC HEARINGS:
A. Public Hearing – Request to Establish an Obsolete Property District –
1740 E Sherman Boulevard Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Pacifica Muskegon, LLC, has requested the establishment of an
Obsolete Property District for their property at 1740 East Sherman Boulevard. The
establishment of the Obsolete Property District would allow them to apply for an
Obsolete Property Rehabilitation Exemption Certificate.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the Obsolete
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Property District.
PUBLIC HEARING COMMENCED: No Public Comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and to approve the Obsolete Property District at 1740
E. Sherman Boulevard.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, Turnquist, Johnson, and
Gawron
Nays: None
MOTION PASSES
B. Public Hearing – Request to Issue an Obsolete Property Certificate –
Pacifica Muskegon, LLC – 1740 E Sherman Boulevard Planning &
Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Pacifica Muskegon, LLC, has requested the issuance of an Obsolete
Property Certificate for their property located at 1740 East Sherman Boulevard.
The estimated cost for rehabilitation of this property will be $1,500,000. The
applicant is eligible for a 12-year abatement because of the amount of
investment.
FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the
property taxes would be frozen at the pre-rehabilitated rate for the duration of
the certificate.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the Obsolete
Property Rehabilitation Exemption Certificate.
PUBLIC HEARING COMMENCED: No Public Comments were received.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to close the public hearing and to approve the Obsolete Property Rehabilitation
Exemption Certificate at 1740 E. Sherman Boulevard.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
Hood.
Nays: None
MOTION PASSES
2016-90 NEW BUSINESS:
A. First Quarter 2016-17 Budget Reforecast Finance Director
SUMMARY OF REQUEST: At this time staff is transmitting the First Quarter 2016-17
Budget Reforecast which outlines proposed changes to the budget that have
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come about as a result of changes in revenue projections, policy priorities, labor
contracts, updated economic conditions, or other factors.
FINANCIAL IMPACT: A summary of first quarter proposed adjustments to the
budget are as follows:
• General Fund revenues are reforecast to be $115,000 lower than
the original budget, largely due to lower projected income tax
revenues.
• General Fund expenditures are reforecast to be $40,000 higher than
the original budget, primarily due to the addition of $25,000 for
street light removal and $15,000 in capital for a perks reservation
system.
• There is some refinement of the capital projects budget resulting in
an overall net decrease of $14,000 from the original budget.
BUDGET ACTION REQUIRED: City Commission approval of this reforecast will
formally amend the City’s 2016-17 budget.
STAFF RECOMMENDATION: Approval
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood to
approve the First Quarter 2016-17 Budget Reforecast.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
Warren.
Nays: None
MOTION PASSES
B. Commercial Chemical Spreader/Sprayer DPW/Equipment
SUMMARY OF REQUEST: Authorize staff to purchase one (1) Z Max Commercial
Spreader/Sprayer from SiteOne Landscape Supply, lowest qualified bidder with
a bid price of $11,455.00 (the other bid was submitted by LT Rich Products for
$11,455.77). This request is contingent upon 1st quarter budget reforecast
approval.
FINANCIAL IMPACT: $11,455.00
BUDGET ACTION REQUIRED: None. Amount is what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase one (1) Z Max
Commercial Chemical Spreader/Sprayer.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood to
approve the authorize staff to purchase one Z Max Commercial Chemical
Spreader/Sprayer.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
Warren.
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Nays: None
MOTION PASSES
C. Transfer of the Commercial Rehabilitation Exemption Certificate – 316
Morris Avenue Planning & Economic Development
SUMMARY OF REQUEST: The Hinman Company was approved for a
Commercial Rehabilitation Exemption Certificate in 2013 and the certificate was
applied to the entire building. However, the project only included the
rehabilitation of floors one through five and did not include floors six and seven.
The certificate was approved for 10 years and the company did invest the
$450,000 in upgrades as described in the application. The company would like
to transfer the Commercial Rehabilitation Exemption Certificate (#C2013-011)
from the entire building (floors 1-7) to floors one through five. This will allow them
to apply for a Neighborhood Enterprise Zone Certificate for floors six and seven
for their apartment project. Currently, they would not be able to apply for a
Neighborhood Enterprise Zone Certificate because there is already an
abatement on floors six and seven and the Michigan Economic Development
Corporation does not allow multiple tax abatements at the same location.
FINANCIAL IMPACT: The transfer would allow for the company to apply for a
Neighborhood Enterprise Zone.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the Commercial Rehabilitation
Exemption Certificate transfer.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to approve the
Commercial Rehabilitation Exemption Certificate transfer for 316 Morris Avenue
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and Rinsema-
Sybenga.
Nays: None
MOTION PASSES
D. Revocation of a portion of the Commercial Rehabilitation Exemption
Certificate – 316 Morris Avenue Planning & Economic Development
SUMMARY OF REQUEST: In order to apply for the Neighborhood Enterprise Zone
Certificate for floors six and seven, the Commercial Rehabilitation Exemption
Certificate must be revoked on these floors.
FINANCIAL IMPACT: The revocation would allow for the company to apply
for a Neighborhood Enterprise Zone.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the revocation of a portion of the
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Commercial Rehabilitation Exemption Certificate.
Motion by Vice Mayor Hood, second by Commissioner Rinsema-Sybenga, to
approve the revocation of a portion of the Commercial Rehabilitation Exemption
Certificate for 316 Morris Avenue.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, Rinsema-Sybenga, and
Turnquist.
Nays: None
MOTION PASSES
E. Approval of a Neighborhood Enterprise Zone Certificate – 316 Morris
Avenue Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from Hinman Lake, LLC for the conversion of
offices to apartments on the sixth and seventh floors of their building at 316
Morris Avenue. The estimated project cost is $1,777,200 and will include 20
market rate apartments. The property was approved as a Neighborhood
Enterprise Zone District on September 13, 2016. The applicant has met local and
state requirements for the issuance of the NEZ certificate.
FINANCIAL IMPACT: The taxes on floors six and seven will be frozen at the
pre-rehabilitated rate for 12 years, with a three year phase out (they will receive
75% of the abatement in year 10, 50% in year 11 and 25% in year 12).
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the NEZ certificate.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to approve the Neighborhood Enterprise Zone Certificate for 316 Morris Avenue.
ROLL VOTE: Ayes: Gawron, Hood, Warren, Rinsema-Sybenga, Turnquist, and
Johnson.
Nays: None
MOTION PASSES
F. Adopt a Resolution of Intent Regarding Recreational Authority City
Manager
SUMMARY OF REQUEST: To express the intent of the City of Muskegon to
establish a recreational authority within the County of Muskegon and to appoint
a representative of the City of Muskegon to join with the representatives from
other like-minded municipalities to form a steering committee to prepare articles
of incorporation for such a recreational authority, which would include the City
of Muskegon within its territory.
FINANCIAL IMPACT: None at this time.
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BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To adopt the resolution expressing the intent of
the City of Muskegon to establish a recreational authority within the County of
Muskegon and to appoint a representative of the City of Muskegon to join with
the steering committee.
Motion by Commissioner Johnson, second by Commissioner Warren, to adopt
the resolution expressing the intent of the City of Muskegon to establish a
recreational authority within the County of Muskegon and to appoint a
representative of the City of Muskegon to join with the steering committee.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, Turnquist, Johnson, and
Gawron.
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Commissioner Johnson congratulated Vice Mayor
Hood on becoming the President of the local chapter of the NAACP.
Commissioner Warren thanked everyone for their well wishes for her, her
husband, and their new baby boy, Levon. Dave Alexander, Muskegon
Downtown Now, reminded everyone about Small Business Saturday and
Christmas in the City with the lighting of the Christmas Tree at Hackley Park
Saturday, November 26, 2016 at 5:30.
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:45 p.m.
Respectfully Submitted,
Kimberly Grimm, Deputy City Clerk
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