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CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 14, 2019 @ 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 14, 2019, Pastor
Darrin Longmire, Forest Park Covenant 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, Debra Warren, Dan Rinsema-Sybenga, and Willie
German, Jr., Acting City Manager LeighAnn Mikesell, City Attorney John Schrier,
and City Clerk Ann Meisch.
INTRODUCTIONS/PRESENTATION:
A. Recognition of Paul Billings Outstanding Citizen Recipient for 2018
Mayor Stephen J. Gawron and the City Commission recognized Mr. Paul Billings
for being selected as the 2018 Outstanding Citizen Recipient. Paul Allen “P.A.”
Billings is described as an advocate for the community, a visionary, and
philanthropist.
2019-37 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve minutes of the April 23, 2019 Regular
Meeting.
FINANCIAL IMPACT: None
BUDGET RECOMMENDATION: None
STAFF RECOMMENDATION: Approval of the minutes.
B. 2019-2020 Michigan Municipal League Membership Dues City Clerk
SUMMARY OF REQUEST: Approval to pay the 2019-2020 MML dues in the
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amount of $10,206. This is an increase of $239.
FINANCIAL IMPACT:
MML Dues $9,278
Legal Defense Fund $ 928
Total $10,206
BUDGET RECOMMENDATION: None
STAFF RECOMMENDATION: Approval.
C. Zoning Ordinance Amendment – Planned Unit Development Section of
Single Family Residential Districts – 2nd Reading Planning & Economic
Development
SUMMARY OF REQUEST: Staff initiated request to amend Section 403 of the
zoning ordinance to revise the intent of the Planned Unit Development option
by allowing limited retail options.
FINANCIAL IMPACT: None
BUDGET RECOMMENDATION: None
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request 8-0 at their April 11 meeting.
D. Zoning Ordinance Amendment – Landscaping Requirements – 2nd
Reading Planning & Economic Development
SUMMARY OF REQUEST: Staff initiated request to amend Section 2331 of the
zoning ordinance to allow applicants to donate trees to the City’s nursery rather
than to replace trees on site during development.
FINANCIAL IMPACT: None
BUDGET RECOMMENDATION: None
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request 8-0 at their April 11 meeting.
F. Arena Management City Manager
SUMMARY OF REQUEST: Staff is seeking approval with Arc Arena Management
to undertake the daily management of the LC Walker Arena. Matt Gongalski
and Arc Arena Management have been managing aspects of the arena for
the past year. With the departure of the previous arena manager, staff is
recommending that Arc be appointed to fill that role.
FINANCIAL IMPACT: First Year: $57,000
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BUDGET RECOMMENDATION: None at this time.
STAFF RECOMMENDATION: To authorize the city manager to enter into the
agreement with Arc Arena Management to manage the LC Walker Arena.
G. Purchase Agreement Extension – 1490 Lakeshore Drive City Manager
SUMMARY OF REQUEST: Staff is seeking permission to enter into a purchase
agreement to sell the city-owned property at 1490 Lakeshore Drive. The
potential developer has been working with City staff, the DEQ, and Amoco/BP
to resolve the existing environmental issues on the site. The prognosis for an
amicable resolution is good, but it may take a number of years. As such, staff is
seeking a five year agreement.
FINANCIAL IMPACT: None
BUDGET RECOMMENDATION: None at this time.
STAFF RECOMMENDATION: To authorize the city manager to enter into the
sales agreement to sell the property at 1490 Lakeshore Drive for $420,000 to
Muskegon Harbor Services, LLC. The agreement shall require a $5,000 initial
earnest deposit, plus an additional $5,000 earnest deposit due June 1 of each
year of the agreement. The earnest deposit shall be refundable only in the
event the developer fails to complete the sale, and developer releases all due
diligence and planning documents to the City.
H. Tug and Trailer Purchase City Manager
SUMMARY OF REQUEST: Staff has been working with various downtown event
organizers to identify ways to make downtown events more accessible. There is
significant interest in locally acquiring and operating a low-cost people mover.
Staff has identified a used tug system that can move in excess of 40 people at
one time, and can accommodate wheel chairs. Staff is seeking permission to
purchase the equipment. The equipment identified belongs to Creek County,
Oklahoma, and is currently in storage.
FINANCIAL IMPACT: $44,000
BUDGET RECOMMENDATION: None at this time.
STAFF RECOMMENDATION: To authorize the purchase of one tug and two
trailers from Creek County, Oklahoma at a cost not to exceed $44,000.
I. Storage Garage – Marsh Field City Manager
SUMMARY OF REQUEST: City staff is seeking permission to collaborate with
Muskegon Baseball to construct a storage garage at Marsh Field. The garage
will be slightly larger than a two-stall garage. The estimated cost of the structure
is $25,000. Muskegon Baseball will reimburse the City of Muskegon 50% of the
expense.
FINANCIAL IMPACT: $25,000
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BUDGET RECOMMENDATION: None at this time
STAFF RECOMMENDATION: To authorize the construction of a storage
garage at Marsh Field at a cost not to exceed $25,000, with $12,500 being
reimbursed by Muskegon Baseball.
J. Purchase Agreement – 1192 Pine Street City Manager
SUMMARY OF REQUEST: City staff is seeking permission to purchase the vacant
home located at 1192 Pine. Earlier this year, the city acquired the adjacent
property via tax foreclosure. The two homes share a yard and off-street parking.
It is likely that they once were owned by the same entity in the past. The home
at 1192 was offered for auction in late April. Staff put a bid on the property of
$4,500. This was the only bid received. Although it did not meet the auction’s
reserve price, the sellers agreed to accept the offer. Staff anticipates
approximately $2,500 in transaction-related costs.
FINANCIAL IMPACT: $7,000 from Public Improvement Fund.
BUDGET RECOMMENDATION: None at this time.
STAFF RECOMMENDATION: To authorize the city manager to complete the
purchase of 1192 Pine Street.
K. Tuition Reimbursement City Manager
SUMMARY OF REQUEST: Staff is seeking an update to the existing tuition
reimbursement program for active employees. Currently, the City reimburses up
to $2,000 annually for undergraduate-level courses and $2,500 for graduate-
level courses. The updated program will reimburse up to $2,500 annually for
undergraduate-level courses and $3,000 for graduate-level courses.
FINANCIAL IMPACT: None at this time.
BUDGET RECOMMENDATION: None at this time.
STAFF RECOMMENDATION: To authorize the updated Tuition Reimbursement
Program.
M. Hartshorn Marina T-Dock Repairs Department of Public Works
SUMMARY OF REQUEST: Authorize staff to contract with T.R. Ghezzi, LLC for
repairs to the T-Dock at Hartshorn Marina. After the ice thawed the T-Dock was
found to be in need of repairs prior to opening for the season.
Two contractors were solicited for bids on the project:
T.R. Ghezzi LLC $10,300.00
Great Lakes Declined to Bid
FINANCIAL IMPACT: $10,300.00
BUDGET RECOMMENDATION: None
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STAFF RECOMMENDATION: Authorize staff to contract with T.R. Ghezzi LLC for
the dock repairs.
N. Consumers Energy LED Department of Public Works
SUMMARY OF REQUEST: Authorize the City Clerk to sign the lighting change
contract with Consumers Energy. The agreement covers change in billing for
lights upgraded to LED due to faults and or burnouts.
FINANCIAL IMPACT: None
BUDGET RECOMMENDATION: None. Faulted or burned out lights are upgraded
and replaced with LED at no cost.
STAFF RECOMMENDATION: Authorize the City Clerk to sign the contact with
Consumers Energy.
O. SRF – RR Sewer Crossing Department of Public Works
SUMMARY OF REQUEST: Authorize staff to sign the agreement with CSX for the
new sanitary sewer crossing under the railroad line near 8th Street. The line is
being installed as a part of the 2019 SRF projects.
FINANCIAL IMPACT: $21,500.00
BUDGET RECOMMENDATION: None. Will be billed to the capital project for 9th
Street sewer upgrades.
STAFF RECOMMENDATION: Authorize staff to sign the agreement with CSX for
the new sanitary sewer crossing.
P. DPW Carbon Monoxide System Upgrade and Repairs Department of
Public Works
SUMMARY OF REQUEST: Award a contract for upgrade and repair to the
carbon monoxide monitoring and control system at DPW to the low bidder.
Three contactors submitted bids for this projects as follows:
• Foster Electric Company $8,650.00
• Fredrickson Electric, Inc. $11,676.50
• Belasco Electric $17, 923.00
FINANCIAL IMPACT: $8,650.00
BUDGET RECOMMENDATION: None.
STAFF RECOMMENDATION: Award the project to the low bidder Foster
Electric Company.
R. 2019-20 Healthcare and Wellness Program Finance
SUMMARY OF REQUEST: The City’s healthcare coverage renews effective June
1st, for a period 6/1/19 – 5/31/20. This year’s Priority Health renewal premium
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came in at a 0.003% increase over the previous year. Last year’s increase was
7.64%. 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. Last year, to help offset the cost, we
increased the employee’s premium copay from 10% to 14%. This will keep our
employer contribution below the “hard cap limits” set by PA 152.
For 2019-20 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 the $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 RECOMMENDATION: Employee and retiree healthcare costs will be
included in the forthcoming 2019-20 budget.
STAFF RECOMMENDATION: Authorize staff to execute documents with Priority
Health to renew employee healthcare coverage for the coming year.
S. Delta Dental Renewal Finance
SUMMARY OF REQUEST: The City’s dental insurance renews effective June 1st,
for the period 6/1/19 – 5/31/20. This year’s renewal came in at a 10% decrease
over last year. We decided to take this opportunity to increase the benefits
which has not been done in over 20 years. We are proposing to increase the
annual maximum from $1,000 to $2,000. Overall this will net an increase of less
than 1%.
FINANCIAL IMPACT: Less than $1,500 annual increase.
BUDGET RECOMMENDATION: This will be included in the 2019-2020 budget.
STAFF RECOMMENDATION: Authorize the staff to execute documents to
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renew the employee dental insurance coverage with the increase in the annual
maximum.
T. Financing for Roof Replacement at LC Walker Arena Finance
SUMMARY OF REQUEST: At the December 11, 2018 City Commission meeting
the Commission voted to accept the bid from Certified Building Solutions for the
roof replacement at the LC Walker Arena for $1,051,413. At this time we are
seeking authorization to enter into a lease agreement with Team Financial for
the roof replacement. The proposed terms are for a seven year lease at 4.57%
interest rate with the City purchasing the roof at the end of the lease for $1.
FINANCIAL IMPACT: Annual payments of $175,800.00
BUDGET RECOMMENDATION: This will be included in the 2019-2020 budget.
STAFF RECOMMENDATION: Authorize the staff to enter into a lease
agreement with Team Financial for the roof replacement.
U. Financing for HVAC/Dehumidification Upgrades at LC Walker Arena
Finance
SUMMARY OF REQUEST: At the December 11, 2018 City Commission meeting
the Commission voted to accept the bid from Hurst Mechanical for the
Dehumidification upgrade at the LC Walker Arena. At this time we are seeking
authorization to enter into a lease agreement with Team Financial for the
HVAC/Dehumidification upgrades. The proposed terms are for a seven year
lease at 4.33 % interest rate with the City purchasing the systems at the end of
the lease for $1.
FINANCIAL IMPACT: Annual payments of $207,252
BUDGET RECOMMENDATION: This will be included in the 2019-2020 budget.
STAFF RECOMMENDATION: Authorize staff to enter into a lease agreement
with Team Financial for the HVAC/Dehumidification upgrades.
V. Notice of Intent Resolution Sanitary Sewer Revenue Bonds Finance
SUMMARY OF REQUEST: A notice of Intent Resolution for Sanitary Sewer System
Bonds was approved at the March 12, 2019 meeting for $8.5 million. Base on
recent estimates of the cost of the project we believe it is necessary to request
an additional authorization for $3 million. This will bring the total amount of bonds
issued to finance the acquisition and construction of the project to shall not
exceed $11.5 million.
FINANCIAL IMPACT: None
BUDGET RECOMMENDATION: None
STAFF RECOMMENDATION: Approve the Notice of Intent Resolution for an
additional $3 million Sanitary Sewer System Revenue Bonds bringing the total not
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to exceed $11.5 million.
Motion by Commissioner Warren, second by Commissioner German, to approve
the consent agenda as presented, except items E, L, and Q.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
2019-38 ITEMS REMOVED FROM CONSENT:
E. Marina Management Agreement City Manager
SUMMARY OF REQUEST: Staff has been working with the developer of Hartshorn
Marina Village to create a plan to co-manage the marina and the
condominium association. The two assets will have many of the same users and
will share many of the same amenities. Consistency in management is important
to both organizations. Staff is recommending approval of the marina
management agreement. It is expected the agreement will be cost-neutral
compared to the city’s previous years management expenses.
FINANCIAL IMPACT: None
BUDGET RECOMMENDATION: None at this time.
STAFF RECOMMENDATION: To authorize the city manager to enter into the
agreement.
Motion by Commissioner Johnson, second by Commissioner Warren, to
authorize the City Manager to enter into the agreement.
Motion by Commissioner Johnson, second by Commissioner Rinsema-
Sybenga, to amend the agreement to end February 28, 2024.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
VOTE ON ORIGINAL MOTION:
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Nays: None
MOTION PASSES
L. Summer Evening Recreation Program City Manager
SUMMARY OF REQUEST: Construction and scheduling issues at the High School
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caused the program to shrink to four weeks. A partnership with the Boys and Girls
Club will allow the program to extend four additional weeks. Staff is seeking
approval to spend an additional $13,500 to accommodate this change to the
evening recreation program.
FINANCIAL IMPACT: $13,500
BUDGET RECOMMENDATION: None at this time.
STAFF RECOMMENDATION: To accept the proposal from the Boys and Girls
Club of the Muskegon Lakeshore.
Motion by Commissioner German, second by Commissioner Johnson, to accept
the proposal from the Boys and Girls Club of Muskegon Lakeshore.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
Q. Change Order #003 – West Shore CF Demolition Department of Public
Works
SUMMARY OF REQUEST: Authorize staff to process Change Order #003 for the
proposed demolition work at the West Shore Correctional Facility.
Change Order #003 amends the contract to include removal of all existing
underground utilities from the site. This was not included in the original bid
request, but was later determined to be essential to facilitate future
redevelopment.
FINANCIAL IMPACT: $120,000.00
BUDGET RECOMMENDATION: None. Staff is seeking an amendment to the
purchase agreement to offset the added demolition costs. Costs will be
reimbursed through the state MEDC grant if the purchase agreement cannot be
amended.
STAFF RECOMMENDATION: Authorize staff to process Change Order #003 for
the proposed demolition work at the West Shore Correctional Facility.
Motion by Commissioner German, second by Commissioner Johnson, to
authorize staff to process Change Order #003 for the proposed demolition work
at the West Shore Correctional Facility.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
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2019-39 PUBLIC HEARINGS:
A. Public Hearing for Amendment to the Brownfield Plan for DMDC
Redevelopment Project-Former Muskegon Mall Planning & Economic
Development
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting the amendment for the first amendment to the
Brownfield Plan for DMDC Redevelopment Project – Former Muskegon Mall. The
amendment is intended to identify additional eligible activities proposed for the
eligible property owned by Sweetwater Development, LLC (“Sweetwater”) that
was previously included 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 Leonard building downtown which is anticipated to be an
$8.7 million investment.
“Eligible Expenses” would be reimbursed to Sweetwater starting in 2020. The
estimated tax capture and payment schedule is included as Attachment L-4 in
the proposed Brownfield Plan Amendment.
After all eligible costs incurred by the various parties are reimbursed, the BRA
may, as the capture term provides, continue to capture local taxes for five more
years for deposit into a Local Brownfield Revolving Fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the
public hearing for May 14, 2019 at their April 23, 2019 meeting. Since that time, a
notice of the public hearing has been sent to taxing jurisdictions. In addition, the
Brownfield Redevelopment Authority approved the Plan amendment on March
12, 2019 and further recommends that the Muskegon City Commission approve
the Plan amendment.
PUBLIC HEARING COMMENCED:
Jared Balkema, Warner Norcross & Judd, gave a brief explanation of the project.
Cory Leonard, owner, gave a general overview of the project.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
close the public hearing and approve the resolution and authorize the mayor
and clerk to sign the resolution referencing the amendment to the Brownfield
Development Plan for DMDC Redevelopment Project – Former Muskegon Mall.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
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Nays: None
MOTION PASSES
B. Public Hearing for Amendment to Brownfield Plan – City of Muskegon
(Developer) Planning & Economic Development
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting the amendment for the Brownfield Plan. The
amendments are for the inclusion of properties owned by the City of Muskegon
LLC 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 48 residential units in the Nelson Neighborhood.
“Eligible Expenses” would be reimbursed starting in 2020. The estimated tax
capture and payment schedule is included at Attachment B in the proposed
Brownfield Plan Amendment.
After all eligible costs incurred by the various parties are reimbursed (estimated
to bin in 2032), the BRA is authorized to continue to capture local taxes for five
more years for deposit into a Local Site Remediation Revolving Fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the
public hearing for May 14, 2019 at their April 23, 2019 meeting. Since that time, a
notice of public hearing has been sent to taxing jurisdictions. In addition, the
Brownfield Redevelopment Authority approve the Plan amendment on April 9,
2019 and further recommends that the Muskegon City Commission approve the
Plan Amendment.
PUBLIC HEARING COMMENCED:
Venita Cole, 516 Marshall Street, asked if there were any plans to bring jobs to
Muskegon.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
close the public hearing and approve the resolution and authorize the Mayor
and Clerk to sign the resolution referencing the amendment to the Brownfield
Plan – City of Muskegon - Developer.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
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2019-40 NEW BUSINESS:
A. Fireworks Ordinance Update Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission consider approving an update to our local fireworks ordinance. The
State of Michigan has amended the state law effective December 28, 2018 as it
relates to fireworks use and also providing civil fines for violations. It significantly
shortens the days and times that fireworks can be discharged within the City of
Muskegon. The penalty for discharging fireworks will be a civil infraction carrying
a fine of $1,000.00 for the first offense with $500.00 of the fine collected shall be
remitted to the City of Muskegon Police Department as provided for in MCL
28,457(3).
FINANCIAL IMPACT: Revenue generated will be put into a separate
account as prescribed above.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the Use of
Consumer Fireworks prohibited ordinance.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the Use of Consumer Fireworks Prohibited Ordinance.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
B. Prohibition of Sale and the Consumption of Marihuana in Public Places
(Sec 58-4) Public Safety
SUMMARY OF REQUEST: The Director of Public Safety requests that the
Commission consider approving the prohibition of sale and consumption of
marijuana in public places.
• A public place is considered any places owned, occupied, or
managed by the City of Muskegon.
• The penalty is a civil infraction as prescribed by MCL 333.27965.
• This ordinance does not supersede rights and obligations with
respect to the transfer or consumption of marihuana on private
property to the extent authorized by the person who owns,
occupies, or operates such property and with respect to the use of
marihuana for medicinal purpose.
FINANCIAL IMPACT: Revenue generated will be put into a separate
account.
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BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the prohibition of
sale and consumption of marijuana in public places.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Turnquist,
to approve the Prohibition of Sale and Consumption of Marijuana in Public
Places.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Nays: None
MOTION PASSES
C. 2019 CDBG/HOME Budget Recommendations Community and
Neighborhood Services
REMOVED PER STAFF REQUEST
D. Purchase Agreement – Former Farmers Market Site City Manager
REMOVED PER STAFF REQUEST
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 7:40 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
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