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CITY OF MUSKEGON
CITY COMMISSION MEETING
AUGUST 27, 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, August 27, 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
Byron Turnquist, Ken Johnson, Debra Warren, Dan Rinsema-Sybenga, and Willie
German, Jr., City Manager Frank Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
2019-66 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the August 12, 2019
Worksession meeting and the August 13, 2019 Regular Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
C. 1531 Beidler Street Sale City Manager
SUMMARY OF REQUEST: City Staff is requesting approval of the Quit Claim Deed
to sell 1531 Beidler to Alfredo Fajardo Godoy for $1.00. This property was
acquired via tax reversion. Subsequent staff analysis determined that the time
commitment to the property’s renovation exceeded the city’s abilities, and staff
began to prep the structure for demolition. Mr. Godoy is a renter in the area and
inquired about rehabilitating the property into an owner-occupied home for his
family. He has met with SAFEbuilt on site and they have a tentative plan for
renovation that includes immediately replacing the roof, installing new internal
structural supports, and completing exterior landscaping. The remainder of the
renovation will take 6-9 months. Staff recommends providing Mr. Godoy the
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opportunity to purchase and save the structure.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the Mayor and Clerk to sign the Quit
Claim Deed.
E. Approval of a Neighborhood Enterprise Zone Certificate – 301 Terrace
Point Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
certificate has been received from John Spruit for the new construction of a
home at 301 Terrace Point. The estimated cost for construction is $414,636. The
applicant has met local and state requirements for the issuance of the NEZ
certificate.
FINANCIAL IMPACT: Taxation will be applied as one-half of the previous
years state average principal residence millage rate to the value of the facility.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the NEZ Certificate.
F. Zoning Ordinance Amendment – Critical Dunes Planning & Economic
Development
SUMMARY OF REQUEST: Staff initiated request to amend section 2310 of the
zoning ordinance to make minor changes to the critical dune ordinance.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request at their August 15, 2019 meeting.
H. Certification of MERS Representatives Finance
SUMMARY OF REQUEST: The MERS plan document provides that “the governing
body for each municipality shall certify the names of two (2) delegates to the
Annual Meeting. One delegate shall be a member who is an officer of the
municipality appointed by the governing body of the municipality. The other
delegate shall be a member who is not an office of the municipality, elected by
the member officer/employees of the municipality.”
The City’s employee units previously agreed to a rotating system (based on date
of joining MERS) to select one official employee representative. This year the
official employee representative attending the MERS conference will be Steve
Waltz from the Police Command Unit.
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It is recommended that Kenneth Grant (Assistant Finance Director) be
designated as the City’s employer delegate.
FINANCIAL IMPACT: Registration for the MERS conference in Traverse City,
MI is $175 per person. Additionally, mileage, hotel and related costs will be
incurred.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Certification of Kenneth Grant and Steve Waltz to
be the City’s officer and employee delegates at the MERS annual meeting in
Grand Rapids on October 4 and 5, 2019.
I. Transformer Replacement – Harvey Station DPW – Filtration
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with Newkirk
Electric to replace 500 KVA transformer at Harvey Station since they submitted
the lowest responsible bid of $18, 125.
Three bids were submitted for this project.
Newkirk Electric $18,125.00
Wirtz Electric $19,950.00
Windemuller $23,520.00
FINANCIAL IMPACT: $18,125.00
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Newkirk Electric for a cost of $18,125.
J. Relocating Power pole to Harvey Station DPW – Filtration
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with Wirtz
Electric to remove power pole from Filtration Plant and relocate to Harvey
Station since they submitted the lowest responsible bid of $11,450.
Two bids were submitted for this project.
Newkirk Electric $12,430.00
Wirtz Electric $11,450.00
FINANCIAL IMPACT: $11,450.00
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Wirtz Electric for a cost of $11,450.
K. MTU PLC Programming Services DPW – Filtration
SUMMARY OF REQUEST: Authorize staff to enter into a professional services
agreement with MTU PLC Programming Services at Water Filtration Plant with
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Tetra Tech per their proposal for $16,000.
Tetra Tech is being recommended since they were the engineer for the control
systems upgrades project and their familiarity with the filtration plant.
FINANCIAL IMPACT: $16,000.00
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Tetra Tech for a cost of $16,000.
L. Fleet Vehicle Replacement – Chevy Traverse DPW – Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) Chevy Traverse coming from Berger Chevrolet off the Oakland
County Contract, the lowest available price. The price of this vehicle is
$30,396.00 coming from the Equipment Division Budget.
FINANCIAL IMPACT: $30,396.00
BUDGET ACTION REQUIRED: None. Amount is what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase one (1) Chevy
Traverse from Berger Chevrolet.
M. Fleet Vehicle Replacement – Chevy Impala DPW – Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) Chevy Impala coming from Berger Chevrolet off the Oakland
County Contract, the lowest available price. The price of this vehicle is
$22,843.00 coming from the Equipment Division Budget.
FINANCIAL IMPACT: $22,843.00
BUDGET ACTION REQUIRED: None. Amount is what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase one (1) Chevy Impala
from Berger Chevrolet.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the consent agenda as presented, except items B, D, G, and N.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
2019-67 ITEMS REMOVED FROM CONSENT AGENDA:
B. Cooperation Agreement – Disability Network West Michigan City
Manager
SUMMARY OF REQUEST: City staff is requesting approval of the service proposal
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from Disability Network West Michigan. The proposal will allow Disability Network
to assist the city with an accessibility audit, as well as technical assistance during
the design process on various city/community projects.
FINANCIAL IMPACT: $7,500
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the City Manager to accept the
proposal and sign the contract.
Motion by Commissioner Warren, second by Commissioner German, to
authorize the City Manager to accept the proposal and sign the contract.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist.
Nays: None
MOTION PASSES
D. Opportunity Zone Incentive Program Economic Development
SUMMARY OF REQUEST: The City of Muskegon is fortunate to have its entire
downtown corridor within an Opportunity Zone. The Economic Development
Department is recommending additional localized, Commission reviewed
incentives in order to encourage large scale investment in this competitive
market.
FINANCIAL IMPACT: None at this time, all incentives would be paid out 15
years after the eligible Opportunity Zone Investment.
Funds would be allocated and reserved based on new income tax created and
property tax collection increases as a result of opportunity fund investments,
such as new apartment/housing buildings or businesses.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the incentive package as
presented.
Motion by Commissioner German, second by Commissioner Johnson, to
authorize the City Manager to accept the proposal and sign the contract.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
Warren
Nays: German
MOTION PASSES
G. Amendment to PILOT – Gencap 1021 Jefferson Limited Dividend Housing
Association, LLC Planning & Economic Development
SUMMARY OF REQUEST: The City Commission approved a Payment in Lieu of
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Taxes (PILOT) for Gencap 1021 Jefferson Limited Dividend Housing Association,
LLC on February 26, 2019. The development will include 73 residential units and
2,300 square feet of commercial space. There will be 55 one-bedroom units and
18 two-bedroom units. Ten units will be at 30% AMI, nine units will be at 40% AMI,
11 units will be low-income disability units, 14 units will be at 60% AMI and 29 units
will be at 80% AMI. A service charge of 4% will be imposed, as well as a
municipal services fee of 2%. As directed by the Michigan State Housing
Development Authority (MSHDA), the developer is requesting a few minor
changes to the agreement that reiterates that the development will be for low
income persons and families, not seniors.
FINANCIAL IMPACT: Although the PILOT for project will be less than the taxes
captured for a similar market-rage project, the situation with this particular
property is that the contribution towards the City will be greater to the City with
the development under a PILOT than it is a vacant lot. In addition, taxes would
apply to the commercial square footage within the building.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the revised “Contract for Housing
Exemption.”
Motion by Commissioner German, second by Commissioner Warren, to approve
the revised “Contract for Housing Exemption”.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
N. Notice of Intent to Bond Resolution for Scattered Housing Development
Finance
SUMMARY OF REQUEST: The Notice of Intent is the first step in the bonding
process. This resolution authorizes the publication of the Notice of Intent to bond
for the purpose of acquisition and construction of residential housing units in the
City for economic development purposes. The total project shall not exceed
$3,000,000.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Resolution of Intent.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the resolution of intent.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
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Nays: None
MOTION PASSES
2019-68 PUBLIC HEARINGS:
A. Public Hearing - Request to Establish an Obsolete Property District – 1208
8th Street Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Core Development Corp, LLC has requested the establishment of an
Obsolete Property District for their property at 1208 8th Street. 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 creation of
the district.
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Warren, second by Commissioner Johnson, to close
the public hearing and approve creation of the district.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
B. Public Hearing - Request to Issue an Obsolete Property Certificate – Core
Development Corp, LLC Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Core Development Corp, LLC has requested the issuance of an
Obsolete Property Certificate for their property located at 1208 8th Street. Total
capital investment for this project is estimated to be $550,000, which qualifies
them for the full 12-year abatement.
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 Johnson, to close
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the public hearing and approve creation of the district.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
PUBLIC HEARING COMMENCED: Michael Haueisen, 903 Turner, stated
support of the project.
Motion by Vice Mayor Hood, second by Commissioner Rinsema-Sybenga, to
close the public hearing and approve issue the Obsolete Property Rehabilitation
Exemption Certificate.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
2019-69 NEW BUSINESS:
A. Designation of Voting Delegates for the Michigan Municipal League
Annual Business Meeting City Clerk
SUMMARY OF REQUEST: To designate by action of the Commission, one of our
officials who will be in attendance at the Convention as an official
representative to cast the vote of the municipality at the Annual Meeting; and,
if possible, to designate one other official to serve as an alternate.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval
Motion by Commissioner Johnson, second by Commissioner German, to
designate Mayor Stephen J. Gawron as delegate, and Vice Mayor Eric Hood as
alternate as official representative to cast the vote of the municipality at the
Annual Meeting.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood.
Nays: None
MOTION PASSES
B. Request to Create a New Neighborhood Enterprise Zone District at 292 W
Western Avenue Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 147 of the Michigan Public Acts
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of 1992, Sweetwater Development, LLC has requested to create a new
Neighborhood Enterprise Zone (NEZ) district for the parcel at 292 W. Western
Avenue. Properties located in this NEZ district will be eligible to apply for NEZ
Certificates, which will lower the residential property taxes on new construction.
Notice letters were sent to the taxing jurisdictions on June 11, 2019 and a public
hearing was held on June 25, 2019. State law requires that the resolution must be
adopted at least 60 days after the notice letters were sent.
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 lower the
residential property taxes for 1 to 15 years.
BUDGET ACTION REQURIED: None
STAFF RECOMMENDATION: Staff recommends approval of the new NEZ
district.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the new Neighborhood Enterprise Zone District at 292 W. Western.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
C. Approval of a Neighborhood Enterprise Zone Certificate – 292 W. Western
Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from Sweetwater Development, LLC for the
construction of 18 market-rate apartments as part of a mixed-use development
project. The estimated project cost is $222,975 per unit. 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.
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 15 and 25% in year 15).
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the NEZ certificate for 15 years.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the new Neighborhood Enterprise Zone Certificate at 292 W. Western.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, hood, Warren,
and German.
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Nays: None
MOTION PASSES
D. Updates to MERS Defined Benefit Plan Adoption Agreements Finance
SUMMARY OF REQUEST: After an audit conducted by MERS of our payroll
system, it was discovered that we need to update our agreements for changes
made per union agreements, compensation included in MERS wages and hours
included in calculating Final Average Compensation that weren’t included in
current agreements.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the updates to our MERS Defined
Benefit Agreements.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve the updates to our MERS Defined Benefit Agreements.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
E. Revised City Commission Rules and Procedures Office of the Mayor
SUMMARY OF REQUEST: To adopt revisions to the City Commission Rules and
Procedures discussed at the Legislative Policy Committee meeting held July 31,
2019.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
RECOMMENDATION: To adopt the revised City Commission Rules and
Procedures as discussed.
Motion by Commissioner Johnson, second by Commissioner German, to further
revise the City Commissioner Rules and Procedures by adding that the City Clerk
will provide the Worksession Audio file to all City Commissioners after each
Worksession meeting as well as retain the file for two years, changing L. 5. to
read all purchases over $15,000, removing L. 6., revising L. 9. to be for
agreements extending beyond one year or in excess of $15,000.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Nays: None
MOTION PASSES
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Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to adopt the revised City Commission Rules and Procedures as discussed at the
Legislative Policy meeting on July 31, 2019 and as revised by the previous
motion.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Chief Lewis provided an update regarding on-going
matters in the City.
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 8:12 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
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