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CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 8, 2018 @ 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 8, 2018. Mr. George
Monroe, 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 J. Gawron, Vice Mayor Eric Hood, Commissioners
Ken Johnson, Byron Turnquist, Willie German, Jr., Debra Warren, and Dan
Rinsema-Sybenga, City Manager Frank Peterson, City Attorney John Schrier, and
City Clerk Ann Meisch.
INTRODUCTIONS/PRESENTATION:
Pollinator Plan Presentation
The Pollination Plan was presented by Kevin Santos from the Department of
Public Works. Some goals are to reduce pesticide use, create buffer zones,
create native planting areas, and cut down on mowing costs.
2018-32 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the April 24, 2018 Regular
Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
B. Request to Fly the Norwegian Flag City Clerk
SUMMARY OF REQUEST: Sons of Norway are requesting permission to fly the
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Norwegian Flag at City Hall on Thursday, May 17, in honor of Norway’s
Constitution Day (Independence Day).
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the request.
C. Approval of Building Contract for 1015 E. Forest Avenue Community &
Neighborhood Services
SUMMARY OF REQUEST: To award the building contract for the rehabilitation of
1015 E. Forest Avenue to Holden Construction for the City of Muskegon’s
Homebuyers Program through CNS.
CNS received 3 bids, the cost estimate from our spec writer was $98,100.
FINANCIAL IMPACT: The funding for this project has been secured with 2017
HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To award Holden Construction the rehabilitation
contract for 1015 E. Forest in the amount of $73,250.00 for the Community and
Neighborhood Services Office.
D. Toro Groundsmaster Mower DPW/Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) Toro Groundsmaster Mower coming for Spartan Distributers the
lowest qualified bidder. Cost for this Mower is $31,737.32 coming from the
Equipment Division fund.
FINANCIAL IMPACT: $31,737.32
BUDGET ACTION REQUIRED: None. Amount is what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase one (1) Toro
Groundsmaster Mower from Spartan Distributers, the lowest qualified bidder.
E. 2018-19 Healthcare and Wellness Program Finance Director
SUMMARY OF REQUEST: The City’s healthcare coverage renews effective June
1st, for the period 6/1/18 – 5/31/19. This year’s Priority Health renewal premium
came in at a 7.64% increase over the previous year. Last year’s increase was
3.96% after several benefit changes were made. For several years the City has
made numerous benefit changes including increasing deductibles and copays
along with changes to the drug copays to keep our increases as low as possible.
This year to help offset the cost we are proposing to increase the employee’s
premium copay from 10% to 14%. This will keep our employer contribution below
the “hard cap limits” set by PA 152.
Per State guidelines we must remain below the “hard cap limit” or employees
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must contribute 20% towards their premium. To stay below the “hard cap limit”
would require significant benefit changes each year so we are opting to
gradually increase the employee premium copay until it reaches the 20% we
feel this option will have less negative impact on the majority of employees.
For 2018-19 the City will continue to pay the HRA deductible if the employee
and spouse complete the wellness requirements by March 31st. Non-participants
in the wellness program will be required to pay $1,000 for single coverage or
$2,000 per double or family coverage 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.
BUDGET ACTION REQUIRED: Employee and retiree healthcare costs will be
included in the forthcoming 2018-19 budget.
STAFF RECOMMENDATION: Authorize staff to execute documents with Priority
Health to renew employee healthcare coverage for the coming year.
F. Set Public Hearing for Amendment to Brownfield Plan – Pigeon Hill
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 Pigeon Hill Brewing
Company, LLC, located at 895 4th Street, in the Brownfield Plan.
FINANCIAL IMPACT: Brownfield Tax Increment Financing will be used to
reimburse the developer for “eligible expenses” incurred in association with
development of the Pigeon Hill project, which is approximately $434,507.28.
Pigeon Hill Brewing Company, LLC cost for the development of the property is
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approximately $1,313,187 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 May 8, 2018 and approved the Brownfield Plan Amendment and
recommends the approval of the Brownfield Plan Amendment to the Muskegon
City Commission.
G. Remembrance Road Preliminary and Construction Engineering
Department of Public Works
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with Moore
& Bruggink for preliminary and construction engineering services related to the
reconstruction and widening of Remembrance Road from Keating south to new
project site in the Port City Industrial Park.
The requested consultant is currently working on the site development, has
familiarity with the needs for the project site and has submitted a reasonable
cost estimate for the work.
FINANCIAL IMPACT: $107,000 for engineering services to be covered by the
Major Street fund.
BUDGET ACTION REQUIRED: Adjust Major Street fund in third quarter
reforecast.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Moore & Bruggink for engineering services related to the reconstruction and
widening of Remembrance Road.
H. LC Walker Arena Improvements City Manager
SUMMARY OF REQUEST: Staff is seeking approval to make a number of
investments at the LC Walker Arena during the 2018 off-season. The
improvements include updated ADA seating, demolition and removal of
old/unused HVAC equipment, painting, and ceiling repairs. In addition to these
improvements, staff will be requesting funds from the Downtown Development
Authority to replace the glass around the playing surface, replace ice
controllers, upgrade restrooms, reconfigure a portion of the arena’s seating, and
improve food and beverage offerings. Collectively, these items are expected to
help improve the fan/visitor experience and move the arena closer to self –
sustainability.
ADA Improvements: $20,000
Paint: $120,000
Selective Demolition: $30,000
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Ceiling Repairs: $60,000
FINANCIAL IMPACT: $20,000 was previously budgeted in the General Fund
for ADA Compliance. The remaining funds will be expensed from the Public
Improvement Fund.
BUDGET ACTION REQUIRED: This will be accounted in the 3rd Quarter
Reforecast.
STAFF RECOMMENDATION: To authorize the city manager to expend up to
$230,000 for ADA seating upgrades, miscellaneous, demolition, painting, and
ceiling repairs at the LC Walker Arena.
Motion by Commissioner Johnson, second by Commissioner Warren, to approve
the consent agenda as presented, except items I and J.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron.
Nays: None
MOTION PASSES
2018-33 ITEMS REMOVED FROM CONSENT AGENDA:
I. Amity Bridge – Resolution of Support for Bridge Funding Application and
Commitment for Matching Funds Department of Public Works
SUMMARY OF REQUEST: The Engineering Department would like to apply for
bridge preservation funding through the Michigan Department of
Transportation. These funds would be used to remove the Amity Bridge and build
a new roadway on fill. The bridge was originally constructed to cross a railroad
line that no longer exists.
Construction is estimated at $415,000, and the city would be required to provide
matching funds of approximately $90,000 plus engineering costs. Funding is
available starting in 2021.
The MDOT application requires a resolution of support and commitment for the
matching funds.
FINANCIAL IMPACT: $200,000 split over fiscal year 20/21 and 21/22
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approve the resolution of support for the bridge
preservation fund application and commit to funding the required match and
engineering costs.
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Motion by Commissioner German, second by Commissioner Warren, to approve
the resolution of support for the bridge preservation fund application and
commit to funding the required match and engineering costs.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood.
Nays: None
MOTION PASSES
J. Medical Marihuana Facilities Licensing Act Application Planning &
Economic Development
SUMMARY OF REQUEST: Request to approve the proposed local MMFLA
application.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To pass the resolution approving the application.
Motion by Commissioner German, second by Commissioner Johnson, to pass
the resolution approving the application.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
2018-34 NEW BUSINESS:
A. DDA On-Premise Liquor License for Nipotes Planning & Economic
Development
SUMMARY OF REQUEST: To approve the Resolution for a Downtown
Development Authority On-Premise Liquor License for Nipotes. The Liquor Control
Commission allows for additional for additional liquor licenses within Downtown
Development Authority Districts under certain conditions.
FINANCIAL IMPACT: Approving the Liquor License will allow for a new
restaurant in the downtown area which should result in increased revenue for
the City.
BUDGET ACTION REQUIRED: None
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STAFF RECOMMENDATION: To approve the resolution.
Motion by Commissioner Johnson, second by Commissioner German, to
approve the resolution.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German.
Nays: None
MOTION PASSES
B. Medical Marihuana Facilities Licensing Act Planning & Economic
Development SECOND READING
SUMMARY OF REQUEST: Request to approve the ordinance for the
Medical Marihuana Facilities Licensing Act.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the ordinance.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the ordinance.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
C. Amendment to the Zoning Ordinance – Medical Marihuana Facilities
Licensing Act Overlay District Planning & Economic Development
SUMMARY OF REQUEST: Staff-initiated request to amend the zoning ordinance
to include a new section for the Medical Marihuana Facilities Overlay District.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATIONS: Staff recommends approval of the ordinance
amendment.
COMMITTEE RECOMMENDATION: The Planning Commission voted in favor (4-
2) of recommending to the City Commission to approve the zoning ordinance
amendment for the MMFLA overlay district at their February 15 meeting.
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Michalski, Larson, Gawron, and Doyle voted in support. Mazade and
Montgomery-Keast voted in opposition. Peterson and Hovey-Wright were
absent. The version they approved for recommendation is slightly different than
from what staff is presenting tonight, as this version allows all types of licenses
within one overlay zone, rather than restricting licenses between two separate
overlay districts.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve the ordinance amendment.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, Rinsema-Sybenga, and
Turnquist
Nays: German
MOTION PASSES
2nd READING REQUIRED
D. Demolition of 1713 and 1747 7th Street AKA Park Street Storage
Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission authorize the amount of $220,000 for the demolition, removal of
debris and hard surface foundations, parking lots, etc. that remain at the
location, commonly known as “Park Street Storage”. The building and adjacent
lot is dangerous and abandoned and is a source of public safety issues. The
building has no functional use and is in disrepair.
FINANCIAL IMPACT: Negative impact on the Public Improvement Fund,
note $150,000.00 was budgeted (17/18).
BUDGET ACTION REQUIRED: No action at this time (to be reviewed in the
fourth quarter forecast to make adjustments for the additional $70,000.00
needed to complete the project).
STAFF RECOMMENDATION: Staff recommends approval of the demolition of
1713 and 1747 7th Street.
Motion by Vice Mayor Hood, second by Commissioner Rinsema-Sybenga, to
approve the demolition of 1713 and 1747 7th Street.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
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ANY OTHER BUSINESS: Kevin Santos from the Department of Public works
addressed the issue of oak wilt at McGraft Park and the impact the concerns
have had on disc golf at the park.
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 6:58 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC, City Clerk
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