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CITY OF MUSKEGON
CITY COMMISSION MEETING
DECEMBER 13, 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, Commissioners Ken Johnson, 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: Vice Mayor Eric Hood
HONORS AND AWARDS:
A. City of Muskegon Employees – Years of Service Awards
Certificate of Appreciation presented to employees present.
2016-92 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the November 22, 2016 Regular
City Commission Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Park Reservation Software Department of Public Works
SUMMARY OF REQUEST: Staff is requesting to contract with Active Network to
provide software and services for online shelter/community room reservations
and payments.
FINANCIAL IMPACT: $15,060 plus transaction fees.
BUDGET ACTION REQUIRED: None. Funds were added to capital
improvement in 1st Quarter Budget Reforecast.
STAFF RECOMMENDATION: To authorize staff to enter into a contract with
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Active Network to provide software and services for a Park Reservation system
that will allow online booking and payments.
C. Transmittal of 06/30/16 Comprehensive Annual Financial Report
Finance Director
SUMMARY OF REQUEST: The City’s June 30, 2016 Comprehensive Annual
Financial Report (CAFR) has been distributed to City Commissioners via email
and hard copy. The CAFR is also available on the City’s website at
www.shorelinecity.com. The CAFR includes the annual independent auditor’s
report as required by state law. At this time the CAFR is being formally
transmitted to the City Commission. The CAFR has been prepared in
accordance with all current Governmental Accounting Standards Board (GASB)
pronouncements and also includes the single-audit of federal grants received
by the City.
FINANCIAL IMPACT: The CAFR report summarizes the City’s financial
activities for the year and includes the independent auditor’s unmodified
opinion on the City’s financial statements.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Acceptance of the June 30, 2016 CAFR and
authorization for staff to transmit the CAFR to appropriate federal, state, and
private agencies.
D. 2016 User Fee Update Finance
SUMMARY OF REQUEST: City departments have reviewed and updated their
user fees and these have been incorporated into the Master Fee Resolution for
your consideration.
The new fees and fee changes that are being proposed are highlighted on the
attached spreadsheet and significant changes include:
• City code compliance vacant building registration fees have been
updated;
• Rental property registration and inspection fees have been adjusted;
• Various building permit fees have been revised.
FINANCIAL IMPACT: Revenue generated for fee supported activities
BUDGET ACTION REQUIRED: None at this time. Adoption of the Master Fee
Resolution will help the City attain its budgeted revenue estimates.
STAFF RECOMMENDATION: Approval.
E. Request to Deny & Accept Properties that did not Sell During the Tax
Sale for 2016 Planning & Economic Development
SUMMARY OF REQUEST: The County of Muskegon held two delinquent tax
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auctions during 2016. There were fifty-three properties left after the last auction.
According to the State’s tax foreclosure laws, the City must state that they are
not interested in obtaining them, otherwise the City will automatically receive
ownership of the parcels. From the list that was provided, Planning and
Community & Neighborhood Services have gone over the parcels to determine
which ones to accept.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To deny and accept certain parcels and
authorize both the Mayor and the Clerk to sign said resolution.
F. All Season Rescue Water Craft (Fire) Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the amount of $67,500.00 for a 20 foot Rescue Water Craft
for the Muskegon Fire Department. This specialty rescue boat will replace the
1988 “Scat” hovercraft, which is no longer in service due to being unrepairable.
The selected rescue craft is made by Duck Water Boats in Dover, Ohio. This craft
would enable Fire the ability to perform in four (4) seasons with a focus on open
water/ice rescue during the winter months. The craft is propelled by “air power”,
supplied by a Levaitor Marine V8 550 horse power motor. The vessel comes with
a venture trailer for swift and easy deployment when and where it is needed.
This equipment will enhance our ability to perform in harsh winter conditions and
provide other services needed during the rest of the year, including river rescue
and mobility in wet lands, which is not existent at this time.
FINANCIAL IMPACT: None. Budgeted.
BUDGET ACTION REQUIRED: Equipment was budgeted in the 2016/2017
budget cycle to support the equipment upgrade (404 Public Improvement
Fund).
STAFF RECOMMENDATION: Staff recommends approval of this rescue craft
purchase to update and enhance essential winter/ice rescue capabilities.
G. Renaissance Zone: Third Amendment to Development Agreement –
City of Muskegon and Parkland Muskegon, Inc. Planning &
Economic Development
SUMMARY OF REQUEST: To approve the Development Agreement between the
City of Muskegon and Parkland Muskegon, Inc.
FINANCIAL IMPACT: There are assurances that the project will be
completed that involve financial commitments to the City. They include a
special assessment in the amount of $400,000 to be placed in escrow which will
be applied to the property if certain conditions are not met, as well as an
escrow deposit of $100,000 to be held by the City until a Certificate of
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Occupancy is granted for 47 units. In addition, a “profit sharing” clause in the
amount of 10% to the City is included in the event the Project is sold and the net
proceeds to the Company exceed $6,700,000. In addition, the City agrees to
take ownership of the lot adjacent to High-Point Flats, as well as the area behind
the properties on the block and will then improve the area behind the property
as a parking lot with 90 spaces. Further, the Agreement is contingent upon the
City’s approval of a 15 year NEZ HighPoint Flats.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the Third Amendment to
Development Agreement between the City and the Company, and authorize
the Mayor and Clerk to sign.
H. Purchase of 235 Monroe Community & Neighborhood Services
SUMMARY OF REQUEST: To approve the purchase of the property located at
235 Monroe Avenue from Henry and Joanne Brown for the amount of $4,000.
The City currently owns the adjacent parcel at 239 Monroe Avenue.
FINANCIAL IMPACT: Program income from CDBG will be used for the
purchase.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request and direct staff to
proceed with a purchase agreement.
I. Approval of a Neighborhood Enterprise Zone Certificate-335 Terrace
Point Circle Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Steve and Heather Strach for the new
construction of a home at 335 Terrace Point Circle. The estimated cost for
construction is $250,384 and they are applying for a 12-year certificate. The
applicant has met local and state requirements for the issuance of the NEZ
certificate. Approval or denial by the City Commission is required within 60 days
of the application date and must be forwarded to the State Tax Commission.
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.
J. Approval of a Neighborhood Enterprise Zone Certificate – 347 Terrace
Point Circle Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
(NEZ) certificate has been received from Gregory and Cindy Ribesky for the new
construction of a home at 347 Terrace Point Circle. The estimated cost for
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construction is $304,360 and they are applying for a 12-year certificate. The
applicant has met local and state requirements for the issuance of the NEZ
certificate. Approval or denial by the City Commission is required within 60 days
of the application date and must be forwarded to the State Tax Commission.
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.
K. Salt Spreader DPW/Equipment
SUMMARY OF REQUEST: Authorize staff to purchase two Henderson FHS Salt
Spreaders for $18,807.00 each from Arista Truck Systems, the lowest qualified
bidder. These will replace the two oldest spreaders currently being used.
FINANCIAL IMPACT: $37,614.00
BUDGET ACTION REQUIRED: None. Amount is what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase two Henderson FHS
Salt Spreaders from Arista Truck Systems.
M. 2017 Salary Schedule and Fringe Benefits for Non-Represented
Employees City Manager
SUMMARY OF REQUEST: To approve and adopt the two proposed salary
matrixes for the non-represented administrative, technical, professional, and
supervisory employees for 2017 ($2,000 lump sum payment across all
classifications).
FINANCIAL IMPACT: The changes will cost approximately $75,000.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve and adopt the two proposed salary
matrixes for non-represented employees for 2017.
N. Kitchen 242 Contract City Clerk
SUMMARY OF REQUEST: The City’s agreement with Pioneer Resources to
operate Kitchen 242 will expire in January 2017. The kitchen officially opened in
July 2015 offering culinary classes and services to food entrepreneurs. The
contract calls for the scheduling of the kitchen, educating food entrepreneurs,
promotion, meeting local and state laws, reviewing applications, invoicing users,
and actively seeking new users. Pioneer Resources has been instrumental in
assisting with installation of kitchen equipment and supplying items to the
kitchen as well as serving in an advisory capacity.
Pioneer Resources has gone through some organizational changes and lost
some employees through retirement. Renae Hesselink has taken an active role in
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the kitchen since its inception at no cost, devoting many hours each week. Her
qualifications speak highly of her background and knowledge. She has been
instrumental in seeking and finding grants for the kitchen and Power of Produce.
We have asked and she has submitted a proposal to operate the kitchen
through September 2017. She has given measurable benchmarks to mark the
success of the plan that she has outlined.
FINANCIAL IMPACT: A contract not to exceed $35,000 to be paid from
funds allocated by the State of Michigan.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To authorize staff to sign an agreement with
Renae Hesselink to operate Kitchen 242 through September 2017.
O. Set Public Hearing for Amendment to Brownfield Plan – P & G Holdings
NY, LLC Planning & Economic Development
SUMMARY OF REQUEST: To approve the resolution setting a public hearing for
an amendment for the Brownfield Plan, and notifying taxing jurisdictions of the
Brownfield Plan Amendment including the opportunity to express their views and
recommendations regarding the proposed amendment at the public hearing.
The amendment is for the inclusion of property owned by P & G Holdings NY,
LLC, located at 920 Washington, 965 W. Western and 1330 Division, in the
Brownfield Plan.
FINANCIAL IMPACT: Brownfield Tax increment Financing will be used to
reimburse the developer for “eligible expenses” incurred in associations with
development of the Watermark project, which is approximately $9,018,750, as
well as $240,000 to be reimbursed to the City of Muskegon for infrastructure
improvements (W. Western Avenue). P & G Holdings NY, LLC cost for the
development of the property is approximately $30 million in private investment,
resulting in a substantial increase in the local and school taxes generated by the
property.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and authorize the
Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority
met on December 6, 2016 and approved the Brownfield Plan Amendment and
recommends the approval of the Brownfield Plan Amendment to the Muskegon
City Commission.
P. Authorize Muskegon County to Adopt and Enforce a Storm Water
Runoff and Post-Construction Ordinance SECOND READING
Planning & Economic Development
SUMMARY OF REQUEST: Staff is requesting the approval of the resolution that will
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allow Muskegon County to administer and enforce a Storm Water Runoff and
Post-Construction Ordinance on behalf of the City of Muskegon. This ordinance
will require a landowner to obtain a Storm Water Permit from the County Drain
Commissioners office before commencement of a project that includes any of
the following:
1) Requires Planning Commission approval
2) Creates more than 10,000 square foot of impervious surface
3) Disturbs, changes, or disrupts more than 10,000 square foot of
existing impervious surface
4) Disturbs more than one acre of land
5) Is within 500 feet of the water’s edge of a drainage course,
wetland, lake or stream.
The application for a Storm Water Permit is $600 and will be approved or denied
within 30 days, however, most reviews can be completed within one to two
weeks.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the ordinance.
Q. Community Relations Committee Recommendations City Clerk
SUMMARY OF REQUEST: To concur with the recommendation from the
Community Relations Committee to accept the resignation of Blanche Smith
from the Planning Commission and to appoint Susan Harrison Wolffis to the
District Library Board.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To concur with the recommendation from the
Community Relations Committee.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to approve the consent agenda as presented with the exception of Item L.
ROLL VOTE: Ayes: Johnson, Gawron, Warren, German Rinsema-Sybenga, and
Turnquist
Nays: None
MOTION PASSES
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2016-93 ITEMS REMOVED FROM CONSENT AGENDA
L. RFP for Temporary Staffing Services Provider Affirmative Action and
Risk Management
SUMMARY OF REQUEST: Approval to allow the Mayor and Clerk to sign the 2017-
2019 Temporary Staffing Services provider contract with the lowest responsible
bidder, Good Temps Temporary Staffing Services.
Listed in the order of low bidder to high bidder, proposals were received from
the following:
Staffing, Inc., 1635 W. Sherman Boulevard, Norton Shores, MI 49441
Workforce, LLC, 5916 Harvey Street, Muskegon, MI 49444
Good Temps, 271 E. Apple Avenue, Muskegon, MI 49442
CEEP, 2104 Leahy Street, Muskegon Heights, MI 49444
Elwood Staffing, 234 North River Avenue, Suite A, Holland, MI 49424
Some bidders were not prepared to bid on the majority of the positions. Good
Temps was the lowest responsible bidder able to meet our needs. Good Temps
is fully prepared to handle all of the City’s Temporary Staffing needs except the
optional public safety positions of part-time police officer and firefighter.
FINANCIAL IMPACT: The 2017 project temporary staffing services cost is
approximately $1,000,000.
BUDGET ACTION REQIRED: The 2017budget allows for the financial
resources.
STAFF RECOMMENDATION: Staff recommends that the Temporary Staffing
Services Contract be awarded to Good Temps Temporary Staffing Services as
the lowest responsible bidder and allow the Mayor and Clerk to sign the
contractual agreement.
Motion by Commissioner Johnson, second by Commissioner German, to award
the Temporary Staffing Services Contract to Good Temps Temporary Staffing
Services as the lowest responsible bidder and allow the Mayor and the Clerk to
sign the contractual agreement
ROLL VOTE: Ayes: Gawron, Warren, German Rinsema-Sybenga, Turnquist, and
Johnson
Nays: None
MOTION PASSES
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2016-94 NEW BUSINESS:
A. Appoint Representative to Recreation Authority Steering Committee
City Manager
SUMMARY OF REQUEST: To appoint a representative of the City of Muskegon to
the Recreation Authority Steering Committee.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To make an appointment to the Recreation
Authority Steering Committee.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to appoint Commissioner Ken Johnson to the Recreation Authority Steering
Committee.
ROLL VOTE: Ayes: Warren, German Rinsema-Sybenga, Turnquist, and Gawron
Abstain: Johnson
Nays: None
MOTION PASSES
B. Request to Create a new Neighborhood Enterprise Zone District at 285
W. Western Avenue Planning & 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.
Western Avenue. Properties located in this NEZ district will be eligible to apply for
the NEZ certificates, which will lower the residential property taxes on rehab
construction. Notice letters were sent to the taxing jurisdictions on June 20 and a
public hearing was held on June 28. State law requires that the resolution must
be adopted at least 60 days after the notice letters were sent. This project will
include 47 apartments units.
FINANCIAL IMPACT: No financial impact at this point. However, being in a
district will allow them to apply for a rehab NEZ certificate, which will freeze the
building at its pre-rehabilitated rate for 1 to 15 years.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the new NEZ
district.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to approve the new NEZ district.
ROLL VOTE: Ayes: Warren, German Rinsema-Sybenga, Turnquist, Johnson, and
Gawron
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Nays: None
MOTION PASSES
C. Approval of Sale of City-Owned Home at 1477 Nolan Community and
Neighborhood Services
SUMMARY OF REQUEST: To approve the resolution and instruct the Community
and Neighborhood Services department to complete the sales transaction with
Rhonda K. Brower for the newly constructed home at 1477 Nolan Avenue for a
purchase price of $125,000.
FINANCIAL IMPACT: The proceeds from the sale will be used to continue the
rehabilitation of affordable homes through the HOME program and provide
funding for our Homebuyer’s Assistance Program.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and direct the CNS
staff to complete the sale.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner German
to approve the resolution and direct the CNS staff to complete the sale.
ROLL VOTE: Ayes: German Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
Warren
Nays: None
MOTION PASSES
D. Professional Service Agreement (SAFE built) Public Safety –
REMOVED PER STAFF REQUEST
ADJOURNMENT: The City Commission Meeting adjourned at 6:08 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk
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