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CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 23, 2017 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
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 23, 2017. Mr.
George Monroe, Evanston Avenue Baptist, 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 Hood, Commissioners Ken
Johnson, Debra Warren, Willie German, Jr. (left at 7:00 p.m.), Dan Rinsema-
Sybenga, and Byron Turnquist, City Manager Franklin Peterson, City Attorney
John Schrier, and City Clerk Ann Meisch.
2017-42 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the May 8, 2017 Worksession
Meeting and the May 9, 2017 Regular City Commission Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Polling Place Changes City Clerk
SUMMARY OF REQUEST: To change the polling location for Precinct 4 from
Oakview Elementary to Muskegon Middle School, the polling location for
Precinct 9 from Moon Elementary to Muskegon High School’s Gym Building, and
the polling location for Precinct 10 from Fire Station #4 to the Lakeshore Fitness
Center.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the polling place changes.
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D. Special Event Request – Amateur Radio Field Day Planning
SUMMARY OF REQUEST: The Amateur Radio Association would like to hold their
Field Day event at Pere Marquette Park June 24-25, 2017. It’s a national event
for ham radio operators and it is an overnight event, starting at 2:00 PM on
Saturday, June 24 and ending at 2:00 PM the following day. They are requesting
permission for their participants to camp overnight in their RVs in the parking lot
adjacent to the Coast Guard station. They expect around 8 RVs in the lot
overnight. There is no alcohol involved and this is not a fundraising type of event.
The purpose of the national “Field Day” event is a national contest to see how
many contacts the radio operators can make in a 24-hour period.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDAITON: Staff recommends approval.
E. 2015 (Edition) International Fire Code Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the City
Commission review and authorize the adoption of the 2015 (edition) of the
International Fire Code. The new edition addresses safeguarding of life, property
from fire, explosion hazards arising from the use and occupancy of buildings
within the City of Muskegon. Note; City Ordinance Chapter 30, Article III, Section
30-191 will again be included with this adoption.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends adoption of the proposed
2015 edition.
G. Amendment of the Non-union Part-Time Police Officers Wage Matrix
Public Safety and Employee Relations
SUMMARY OF REQUEST: The 2017 Wage Matrix for Non-Union Part-Time and
Limited Term Employees has the Police Recruit and Part-Time Police Officers in
Step 7B of the wage matrix. Step 9B has the Evidence/Court Officer which is also
a Part-Time MCOLES Certified Police Officer position.
The department is proposing to leave the Police Recruit in Step 7B, and remove
the Evidence/Court Officer from the Matrix and replace it with an expanded
range of the Part-Time Police Officer. This will provide some flexibility as to how
Part-Time officers can be utilized without designating them for a specific area.
The position description for Part-Time Police Officer and the Union contract
specify how the part-time officers can be utilized. The department will continue
to follow that guideline.
FINANCIAL IMPACT: Unbenefited MCOLES certified part-time officers save
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the City in the areas of Evidence/Court Officer, Beach Patrol, Event Security,
and assisting Inspections.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the request.
H. Purchase of HUD Home at 1350 Eastwood Drive Community &
Neighborhood Services
SUMMARY OF REQUEST: To approve the purchase of a HUD home located at
1350 Eastwood Drive in Sheldon Park Neighborhood for the price of $61,200.
After the sale, CNS will rehabilitate the single family dwelling as part of the HOME
funded Homebuyer Program.
FINANCIAL IMPACT: The funding used for the purchase and rehabilitation
will come from 2016 HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request to purchase the
property.
J. Brownfield Reimbursement Contract with CBC Community Development
Strategies City Manager
SUMMARY OF REQUEST: Approve a contract with CBC Community
Development Strategies to assist with the various steps in the Brownfield
Redevelopment process.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the contract with CBC Community
Development Strategies.
L. Rezoning Request for Several Properties to R-2, Single Family Medium
Density Residential District Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone several properties to R-
2, Single Family Medium Density Residential District.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request at their May 11 meeting, with one
member absent.
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M. Rezoning Request for Several Properties to R-3, Single Family High Density
Residential District Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone several properties to R-
3, Single Family High Density Residential District.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request at their May 11 meeting, with one
member absent.
N. Rezoning Request for Several Properties to Urban Residential, Form Based
Code Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone several properties to
Form Based Code, Urban Residential.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request at their May 11 meeting, with one
member absent.
P. Table the findings of the Housing Board of Appeals for 1451 Park Street
Public Safety
SUMMARY OF REQUEST: This is to request that that City Commission “table” the
findings of the Housing Board of Appeals (HBA) relating to the structure located
at 1451 Park Street. It is further requested that Public Safety Administration be
directed to allow said owner (Bruce Antwan) a ninety (90) day reprieve to
complete finishing work at said location. At the end of ninety (90) days if noted
finish work is not final the case EN157069-1451 Park Street will be forwarded back
to the Commission for concurrence with the Housing Board of Appeals.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To “table” the Housing Board of Appeals decision
to demolish.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the consent agenda as presented, minus items C, F, I, K, and O.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
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Gawron, and Hood
Nays: None
MOTION PASSES
2017-43 ITEMS REMOVED FROM THE CONSENT AGENDA:
C. 2017-2018 Michigan Municipal League Membership Dues City Clerk
SUMMARY OF REQUEST: Approval to pay the 2017-2018 MML dues in the
amount of $9,763. This is an increase of $87.
FINANCIAL IMPACT: MML Dues $8,875
Legal Defense Fund $888
Total $9,763
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Warren, second by Commissioner Johnson to approve
the payment of the 2017-18 MML Dues and Legal Defense Fund in the amount of
$9,763.00.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
F. Purchase of Beach Patrol Vehicle Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the amount of $16,525.97 for the purchase of a 2017
Polaris Ranger Crew 1000 Beach Patrol Vehicle from Babbitt’s Sports Center, a
local business. This purchase will assist with patrol at the beach area and on the
beach, especially if there is an emergency.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: Funds will come from the forfeiture account.
STAFF RECOMMENDATION: Staff recommends approval of this all-terrain
beach vehicle.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga
to approve the purchase of the all-terrain beach vehicle.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
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I. 2017-18 Healthcare & Wellness Program Finance
SUMMARY OF REQUEST: It is time to renew the City’s healthcare coverage for
the 2017-18 plan year (6/1/17 – 5/31/18). Renewal premiums for the City’s
current healthcare program came in a t a 3.96% increase over the current year.
Last year we experienced an increase of 6.96%. In comparative terms, many
employers 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, 2017, the deductible will be increased from $2,500 for an
individual and $5,000 for double/family to $4,000 for an individual and $8,000 for
double/family. In addition, the prescription drug coverage will change from a
$10/$40 copay to a five tier copay of $10/$40/$80/20% ($100 max)/20% ($200
max) effective June 1, 2017.
For 2017-18, 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 be required to pay the first $1,000
(single)/$2,000 (double/family) of the deductible.
Dental benefits will no longer be administered through Priority Health, but they
will now be through Delta Dental.
FINANCIAL IMPACT: The 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
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decution.
BUDGET ACTION REQUIRED: Employee and retiree healthcare costs will be
included in the forthcoming 2017-18 budget.
STAFF RECOMMENDATION: Authorize staff to execute documents with Priority
Health to renew employee healthcare coverage for the coming year.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga to
authorize staff to execute documents with Priority Health to renew employee
healthcare coverage for the coming year.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
K. Rezoning Request for 311, 317, 329, 331, and 335 W. Muskegon Avenue
and 1138 4th Street Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to rezone 311, 317, 329, 331 and
335 W Muskegon Avenue and 1138 4th Street from RT, Two Family Residential
District to Form Based Code, Urban Residential.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the rezoning.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request at their May 11 meeting, with one
member absent.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga
to approve the rezoning.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Nays: None
MOTION PASSES
O. Finance Director Position City Manager
SUMMARY OF REQUEST: Derrick Smith has accepted employment outside of the
City of Muskegon, effective June 2, 2017. This request is to appoint Assistant
Finance Director, Beth Lewis, as Finance Director effective June 2, 2017.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
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STAFF RECOMMENDATION: Staff recommends Beth Lewis be appointed
Finance Director. Beth has been the City’s Assistant Finance Director for 19
years.
Motion by Commissioner German, second by Commissioner Johnson to appoint
Beth Lewis to the position of Finance Director effective June 2, 2017.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
2017-44 NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
288 Jackson Avenue 961 Amity Avenue
240 Monroe Avenue 1342 6th Street
398 Monroe Avenue 1670 Park Street
763 Catawba Avenue 2020 Lakeshore Drive
810 Allen Avenue
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)
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.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
398 Monroe, 763 Catawba, 810 Allen, 1342 6th Street, & 2020 Lakeshore
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga
to concur with the Housing Board of Appeals notice and order to demolish 398
Monroe Avenue, 763 Catawba Avenue, 810 Allen Avenue, 1342 6th Street, and
2020 Lakeshore Drive.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
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288 Jackson
Motion by Commissioner Rinsema-Sybenga, second by Commissioner German
to concur with the Housing Board of Appeals notice and order to demolish 288
Jackson Avenue.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
240 Monroe
Motion by Commissioner German, second by Commissioner Warren to concur
with the Housing Board of Appeals notice and order to demolish 240 Monroe
Avenue.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
961 Amity
Motion by Vice Mayor Hood, second by Commissioner Rinsema-Sybenga to
concur with the Housing Board of Appeals notice and order to demolish 961
Amity Avenue.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
1670 Park Street
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren to
concur with the Housing Board of Appeals notice and order to demolish 1670
Park Street.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
B. Cemetery Perpetual Care Fund-CFFMC City Manager
SUMMARY OF REQUEST: The City Commission recently approved a $500,000
loan for the development of a six-story mixed-use building at 351 West Western
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Avenue. The loan proceeds were originally to be paid from one of the city’s
economic development funds. Rather than utilizing these economic
development funds, City staff is seeking to unlock the power of its Cemetery
Perpetual Care Endowment Fund at the Community Foundation for Muskegon
County by investing the fund’s assets in this secured, interest bearing loan. The
loan would support a downtown Muskegon development project whose goals
are to reestablish downtown residential living and increase the presence of
commercial and retail businesses in the downtown area.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To authorize the Community Foundation for
Muskegon County to invest $500,000 from the City of Muskegon Cemetery
Perpetual Care Fund in 351 W. Western Avenue, LLC, as a piece of the financing
for a six-story residential, commercial and retail development on terms that are
as follows:
The return to the Cemetery Perpetual Care Endowment Fund will be interest at
the prime rate, adjusted annually. Years 1– 5, monthly payments will consist of
interest only. Beginning in Year 6, monthly payments will consist of principle and
interest (at prime), based on 25 year amortization. A balloon payment will be
due at year 15. The loan will be secured by a subordinated mortgage on the
development.
Motion by Commissioner Johnson, second by Vice Mayor Hood to authorize the
Community Foundation for Muskegon County to invest $500,000 from the City of
Muskegon Cemetery Perpetual Care Fund in 351 W. Western Avenue, LLC, as a
piece of the financing for a six-story residential, commercial and retail
development.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist.
Nays: None
MOTION PASSES
C. Approval of a Neighborhood Enterprise Zone Certificate – 351 W.
Western, LLC Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from 351 W. Western, LLC for the construction of
20 market-rate apartments as part of a mixed-use development project. The
estimated project cost is $210,000 per unit. The property was approved as a
Neighborhood Enterprise Zone District on May 9, 2017. The applicant has met
local and state requirements for the issuance of the NEZ certificate. They have
requested the maximum 15 years for the exemption.
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FINANCIAL IMPACT: One-half of the previous year’s state average principal
residence millage rate will be applied to the value of the facility for a duration of
15 years, with a three-year phase out (they will receive 75% of the abatement in
year 13, 50% in year 14, and 25% in year 15.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the NEZ certificate for 15 years.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood to
approve the NEZ certificate for 15 years for 351 W. Western, LLC.
ROLL VOTE: Ayes: Gawron, Hood, Warren, Rinsema-Sybenga, Turnquist, and
Johnson
Nays: None
Absent: German
MOTION PASSES
D. Third Quarter 2016-17 Budget Reforecast Finance
SUMMARY OF REQUEST: At this time staff is transmitting the Third Quarter 2016-17
Budget Reforecast which outlines proposed changes to the budget that have
come about as result of changes in revenue projections, policy priorities, labor
contracts, updated economic conditions, or other factors.
FINANCIAL IMPACT: A summary of third quarter proposed adjustments to
the budget are as follows:
• General Fund revenues are reforecast to be $141,131 higher
than the second quarter budget reforecast, largely due to
higher projected building permit revenues.
• General Fund expenditures are reforecast to be $256,602 lower
than the second quarter budget reforecast.
• There was further refinement of the capital projects budget
resulting in an overall net decrease of $5,294,963 from the
second quarter budget reforecast due to the removal or
reduction of a number of projects.
BUDGET ACTION REQUIRED: City Commission approval of this reforecast will
formally amend the City’s 2016-17 budget.
STAFF RECOMMENDATION: Approval.
Motion by Vice Mayor Hood, second by Commissioner Warren to approve the
2016-17 Budget Reforecast.
ROLL VOTE: Ayes: Hood, Warren, Rinsema-Sybenga, Turnquist, Johnson, and
Gawron
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Nays: None
Absent: German
E. Request for Authorization to Sign Planning & Economic Development
SUMMARY OF REQUEST: Request to authorize Mike Franzak from the Planning
Department to sign purchase agreements and closing documents for the
Midtown Square Homes.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval to authorize.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood to
authorize Mike Franzak from the Planning Department to sign purchase
agreements and closing documents for the Midtown Square Homes.
ROLL VOTE: Ayes: Warren, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
Hood
Nays: None
Absent: German
PUBLIC PARTICIPATION: No public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 7:20 p.m.
Respectfully Submitted,
Ann Marie Meisch, Clerk
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