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CITY OF MUSKEGON CITY COMMISSION MEETING JUNE 14, 2016 CITY COMMISSION CHAMBERS @ 5:30 P.M. AGENDA □ CALL TO ORDER: □ PRAYER: □ PLEDGE OF ALLEGIANCE: □ ROLL CALL: □ HONORS AND AWARDS: □ INTRODUCTIONS/PRESENTATION: A. Recognition of Spring 2016 Citizen’s Academy Graduates Public Safety □ CITY MANAGER’S REPORT: □ CONSENT AGENDA: A. Approval of Minutes City Clerk B. Gaming License Request from Lakeshore Museum Center City Clerk C. Special Event Liquor License – Farmer’s Market City Clerk D. Special Event Request – Burning Foot Beer Festival Request to Allow Overnight Camping at Pere Marquette Park – Planning & Economic Development E. Love Bites Treatery Concession Contract for City of Muskegon Parks Department of Public Works F. Keep in Touch Massage Concession/Business Contract for City of Muskegon Parks Department of Public Works G. Memorandum of Understanding – Justice Assistance Grant Public Safety H. Special Liquor Licenses – Rebel Road Public Safety I. Sale of Buildable Vacant Lot at 88 Monroe Planning & Economic Development J. MDOT-City 2nd Amendment of the Agreement for Muskegon & Webster Engineering □ PUBLIC HEARINGS: A. Transmittal of 2016-17 Proposed Budget City Manager B. Public Hearing – Request to Establish an Obsolete Property District – 1129 3rd Street Planning & Economic Development C. Public Hearing – Request to issue an Obsolete Property Certificate – Hamburger Mikey, LLC – 1129 3rd Street Planning & Economic Development □ COMMUNICATIONS: □ UNFINISHED BUSINESS: □ NEW BUSINESS: □ ANY OTHER BUSINESS: □ PUBLIC PARTICIPATION: ► Reminder: Individuals who would like to address the City Commission shall do the following: ► Fill out a request to speak form attached to the agenda or located in the back of the room. ► Submit the form to the City Clerk. ► Be recognized by the Chair. ► Step forward to the microphone. ► State name and address. ► Limit of 3 minutes to address the Commission. ► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.) □ CLOSED SESSION: A. Discuss City Manager Evaluation □ ADJOURNMENT: ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724- 6705 OR TTY/TDD DIAL 7-1-1- TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705. Date: June 8, 2016 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve minutes of the May 24, 2016 Regular City Commission Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. CITY OF MUSKEGON CITY COMMISSION MEETING MAY 24, 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, May 24, 2016. Pastor Matthew Sharpe, 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 Gawron, Vice Mayor Eric Hood, Commissioners 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: Commissioner Ken Johnson 2016-42 INTRODUCTIONS/PRESENTATION: A. Presentation to Jaylyn There is a young girl that is a resident of the City of Muskegon who has been diagnosed with a very serious illness. Jaylyn has been very brave in the face of much adversity and was recognized at the meeting for her bravery. B. MAISD Superintendent, John Severson, Presentation Regarding Muskegon Promise John Severson, MAISD Superintendent, presented information to the Commission regarding the Muskegon Area Promise – a scholarship program that will fund either a certificate program, a two-year Associate’s Degree or the first two years of a Bachelor’s Degree at Muskegon Community College or Baker College of Muskegon. 2016-CONSENT AGENDA: A. Approval of Minutes City Clerk SUMMARY REQUEST: To approve minutes of the May 9, 2016 Worksession Meeting and the May 10, 2016 Regular City Commission Meeting. Page 1 of 10 FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the minutes. B. Fireworks Display Permit for the 2nd of July Celebration at Heritage Landing City Clerk SUMMARY OF REQUEST: Night Magic is requesting approval of a fireworks display permit for July 2nd at Heritage Landing. Fire Marshall Metcalf has reviewed the request and recommends approval contingent on inspection of the fireworks. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval contingent on inspection of the fireworks and approval of insurance. C. 2016-2017 Michigan Municipal League Membership Dues City Clerk SUMMARY OF REQUEST: Approval to pay the 2016-2017 MML dues in the amount of $9,676. This is an increase of $29. FINANCIAL IMPACT: MML Dues $8,796 Legal Defense Fund $ 880 Total $9,676 STAFF RECOMMENDATION: Approval. D. 2016-2017 Muskegon High School Community Officer Agreement Public Safety SUMMARY OF REQUEST: To approve the 2016-2017 Muskegon High School Community Officer Agreement. This agreement provides Muskegon High School with a Community Officer during the nine months school is in session. FINANCIAL IMPACT: Muskegon Public Schools agrees to pay the City of Muskegon $2,388.10 each month, from September 2016 through May 2017, totaling $21,492.90. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve the 2016-2017 Muskegon High School Community Officer Agreement. E. 2016-17 Healthcare & Wellness Program Finance Department SUMMARY OF REQUEST: It is time to renew the City’s healthcare coverage for 2016-17 plan year (6/1/16 – 5/31/17). Renewal premiums for the City’s current healthcare program came in at a 7% increase over the current year. Last year Page 2 of 10 we experienced an increase of 9.9%. 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, 2016, the deductible will be increased from $2,000 for an individual and $4,000 for double/family to $2,500 for an individual and $5,000 for double/family. In addition, the coinsurance will change from 80/20% to 70/30% effective June 1, 2016. For 2016-17, 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 continue to pay the first $500 (single)/$1,000 (double/family) 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: Full-time City employees pay 10% of the above premium costs through payroll deduction. BUDGET ACTION REQUIRED: Employee and retiree healthcare costs will be included in the forthcoming 2016-17 budget. STAFF RECOMMENDATION: Authorize staff to execute documents with Priority Health to renew employee healthcare coverage for the coming year. F. Consideration of Bids for: Repairs to the Boardwalk at Kruse Park Engineering SUMMARY OF REQUEST: To authorize staff to enter into a minor repairs contract Page 3 of 10 (no bonds) with Midwest Builders LLC, for a total estimated bid of $19,450 since they were the lowest responsible bidder. FINANCIAL IMPACT: The construction cost of $19,450 plus engineering costs. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Authorize staff to enter into a repairs contract with Midwest Builders for an estimated price of $19,450. I. Midtown Square – Authorization for Staff to Negotiate and Close on Sale of Homes Planning & Economic Development SUMMARY OF REQUEST: Construction of the Midtown Square Homes has been completed for four homes and is being completed for five homes. There have been several showings and one purchase offer to date. As it is necessary to move quickly on the sales negotiations, staff is requesting that the Director of Community & Economic Development and/or the Zoning Administrator/Planner III be authorized to sign the purchase agreements and closing documents for the homes, as determined by the final negotiated purchase price. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To authorize the Mayor and Clerk to sign the resolution authorizing the Director of Community & Economic Development and/or the Zoning Administrator/Planner III to sign purchase agreements and closing documents for the Midtown Square homes at a price to be determined by the City Manager. Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to approve the Consent Agenda as presented with the exception of Items G, H, and J. ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Gawron, and Hood. Nays: None MOTION PASSES 2016-44 ITEMS REMOVED FROM CONSENT AGENDA: G. Authorization of Community Housing Development Organization (CHDO) Agreements Community & Neighborhood Services SUMMARY OF REQUEST: To direct the Mayor and City Clerk to sign the 2015 approved agreements for the City’s Community Housing Development Organization reserve and operating funds. The City Commission approved a budget of $100,000 to Community Housing Development Organization nonprofits last spring during the City’s annual Action Plan process. Page 4 of 10 1. Community enCompass $85,000 2. Habitat for Humanity $22,000* *Includes city HOME funding After the Mayor and Clerk sign the contracts, the CNS office will retain one copy for our files and a copy will be supplied to the appropriate nonprofit for their records. FINANCIAL IMPACT: Funding will be allocated from the 2015 HOME program. BUDGET ACTION REQUIRED: The City Commission made budgeting allocation decision last year. STAFF RECOMMENDATION: To direct Mayor and Clerk to sign agreements. COMMITTEE RECOMMENDATION: Citizen District Council approved. Motion by Commissioner German, second by Commissioner Rinsema-Sybenga, to direct the Mayor and Clerk to sign agreements. ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Gawron, Hood, and Warren. Nays: None MOTION PASSES H. Approval of Neighborhood Enterprise Zone Certificates Planning & Economic Development SUMMARY OF REQUEST: The City is applying for Neighborhood Enterprise Zone (NEZ) certificates for the construction of the Midtown Square Homes at: 294 Monroe Avenue 300 Monroe Avenue 308 Monroe Avenue 314 Monroe Avenue 320 Monroe Avenue 333 Houston Avenue 339 Houston Avenue 345 Houston Avenue 349 Houston Avenue The State Tax Commission allows applicants to apply for an NEZ Certificate up to six months after construction commencement if the local unit of government is willing to approve. The estimated cost for construction for the homes is: 294 Monroe Avenue - $172,640 300 Monroe Avenue - $161,605 308 Monroe Avenue - $193,670 314 Monroe Avenue - $173,000 320 Monroe Avenue - $182,420 333 Houston Avenue - $172,875 339 Houston Avenue - $182,260 345 Houston Avenue - $162,290 Page 5 of 10 349 Houston Avenue - $172,115 The City plans on transferring the NEZ certificate to the buyer once the property is sold. 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. Motion by Commissioner German, second by Commissioner Rinsema-Sybenga, to approve the NEZ Certificates. ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Gawron, Hood, Warren, and German. Nays: None MOTION PASSES J. Muskegon City Employee Homeownership Program Planning & Economic Development SUMMARY OF REQUEST: It is important to encourage the City employees to live in the City of Muskegon and enjoy the benefits of homeownership, when feasible. In addition, the City has invested time and money into eliminating blight and restoring central city neighborhoods. In keeping with both of these objectives, a “Muskegon City Employee Homeownership Program” is proposed. City employees purchasing a home within the City will be eligible for up to $500 toward a down payment, as well as the possibility of a forgivable loan, from $1,500 to $4,500 depending on the neighborhood where the home is purchased. FINANCIAL IMPACT: For employees meeting the condition of the “Program”, the City will provide a $500 match toward a down payment on a home, with the possibility of an additional $1,500 to $4,500 forgivable loan, depending on the neighborhood where the home is located. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the “Muskegon City Employee Homeownership Program” and authorize staff to implement the program and provide to City employees purchasing a home in the City a down payment match up to $500, as well as the possibility of a $1,500 to $4,500 forgivable loan, depending on neighborhood where the home is located. Motion by Commissioner Turnquist, second by Vice-Mayor Hood, to approve the “Muskegon City Employee Homeownership Program.” Motion by Commissioner Turnquist, second by Commissioner Warren, to amend Page 6 of 10 the motion by striking – “depending on neighborhood where the home is located” in the description – effectively expanding the ownership program City wide. ROLL VOTE: Ayes: Turnquist Nays: Gawron, Hood, Warren, German, and Rinsema-Sybenga MOTION FAILS VOTE ON ORIGINAL MOTION ROLL VOTE: Ayes: Gawron, Hood, Warren, German, and Rinsema-Sybenga Nays: Turnquist MOTION PASSES 2016-45 PUBLIC HEARINGS: A. Create a Special Assessment District for Alley Between 4th – 5th – Muskegon – Webster Engineering SUMMARY OF REQUEST: To hold a public hearing on the proposed special assessment for the Alley between 4th – 5th – Muskegon – and Webster, and to create the special assessment district and appoint two City Commissioners to the Board of Assessors if it is determined to proceed with the project. The request is the result of a petition for paving which was signed by the majority of the property owners abutting the aforementioned alley. It is also worth mentioning that the “estimated cost figures previously shared with the owners ($28,207), via the notification of this hearing, is expected to rise substantially (more than 20%) due to higher bid prices. FINANCIAL IMPACT: About $35,000, which is expected to be assessed to abutting property owners, including the City. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: To create the special assessment district and assign two City Commissioners to the Board of Assessors by adopting the resolution. PUBLIC HEARING COMMENCED: Rick Boyden, resides in Norton Shores, Treasurer of Temple of Israel – opposed Kevin Huss, 421 W. Webster – opposed Millie Richardson, 362 W. Muskegon – in favor but asking to waive engineering costs. Motion by Commissioner German, second by Commissioner Warren, to close the Public Hearing and to create the special assessment district and to assign two City Commissioners to the Board of Assessors by adopting the resolution in Page 7 of 10 regards to the paving of the alley between 4th – 5th – Muskegon – and Webster. ROLL VOTE: Ayes: Warren Nays: Gawron, Hood, German, Rinsema-Sybenga, and Turnquist MOTION FAILS Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren, to close the public hearing. ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist, and Gawron Nays: None MOTION PASSES 2016-45 NEW BUSINESS: A. Consideration of Bids for Paving of the Alley Between 4th – 5th – Muskegon – Webster Engineering SUMMARY OF REQUEST: To award the Alley paving project to McCormick Sand, Inc. since they were the lowest responsible bidder with a total bid price of $32,825. This award, if approved, should be contingent upon the creation of the special assessment district for this project. FINANCIAL IMPACT: The construction cost of $32,825 plus engineering cost of an additional 15%. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Award the contract to McCormick Sand for a bid price of $32,825 if the special assessment district is created. Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to reject all bids for the alley paving for 4th – 5th – Muskegon – and Webster as the creation of the special assessment district was rejected. ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Gawron, and Hood. Nays: None MOTION PASSES B. Parkland Muskegon – City Property Agreements Planning & Economic Development Department SUMMARY OF REQUEST: The City of Muskegon entered into a development agreement with Parkland Muskegon, LLC on September 4, 2007. The Development Agreement was amended on March 26, 2013. It is now requested Page 8 of 10 to enter into a Second Amendment to the Development Agreement. The Second Amendment removes Parkland’s requirement to construct 24 new market housing units on the property adjacent to High Point Flats, and includes the sale of this property to the City, on the condition that the City builds a parking lot within twelve months of closing on the property. The parking lot will be available for the properties on the block, including High Point Flats and Ameribank. High Point Flats will be responsible for 60% of the annual costs related to the parking lot (and Ameribank will be responsible for 40%). In addition, Parkland is required to complete the exterior renovation of High Point Flats by June 30, 2017, as well as “use reasonable efforts” to complete the interior renovation by June 30, 2017 (which includes constructing 48 market rate housing units). FINANCIAL IMPACT: The purchase price to the City for the property adjacent to High Point Flats is $1.00. In addition, a special assessment in the amount of $121,330.00 will be placed on the December 2016 property tax bill for High Point Flats. If $3 million is spent by Parkland between the signing of the Development Agreement and June 30, 2017, the City will not exercise its rights to collect the special assessment and it will be discharged and deemed paid in full. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the “Agreement” between the City of Muskegon and Parkland Muskegon, LLC, as well as the “Second Amendment to Development Agreement” between the City of Muskegon and Parkland Muskegon, LLC, and authorize the Mayor and Clerk to sign all necessary documents, including closing documents at the time of sale. In addition, authorize staff to work with the City Attorney to develop “Exhibit B” and include that in the final “Second Amendment to Development Agreement”. Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren, to approve the “Agreement” between the City of Muskegon and Parkland Muskegon, LLC as well as the “Second Amendment to the Development Agreement” between the City of Muskegon and Parkland Muskegon, LLC and authorize the Mayor and Clerk to sign all necessary documents, including closing documents at the time of sale. In addition, authorize staff to work with the City Attorney to develop “Exhibit B” and include that in the final “Second Amendment to Development Agreement”. ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Gawron, Hood, and Warren. Nays: None MOTION PASSES C. Ameribank Building – Option Agreement between the City of Page 9 of 10 Muskegon and Port City Construction & Development Services, LLC Planning & Economic Development SUMMARY OF REQUEST: The City issued a Request for Proposal for the former Ameribank Building at 800 First Street. One viable proposal was received by the deadline of March 31, 2016. Staff has met with the proposed purchaser and an Option Agreement has been prepared between the parties. The term of the Option is through October 1, 2016, with an extension possible through January 1, 2017. The option is for 800 First Street, which will be returned to production use as a mixed-use commercial and residential development. The purchase price is $1.00, plus a total earnest money deposit of $20,000 (to be returned to the purchaser upon completion of the project). In addition, the City will offer a loan of $100,000 in support of the project. The City will develop surface parking on adjacent lots (208 & 216 Clay Avenue). The parking will be shared with other developments on the block, with 40% of the maintenance costs to be paid by the purchaser. FINANCIAL IMPACT: Although the purchase price for the building is minimal, the building will be renovated and put back into production use and its occupants will generate taxes for the City in the future. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the Option Agreement between the City of Muskegon and Port City Construction & Development Services, LLC and authorize the Mayor and Clerk to sign all necessary documents, including closing documents at the time of sale. Motion by Commissioner Warren, second by Commissioner German, to approve the Option Agreement between the City of Muskegon and Port City Construction & Development Services, LLC and authorize the Mayor and Clerk to sign all necessary documents, including closing documents at the time of sale. ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Gawron, Hood, Warren, and German. Nays: None MOTION PASSES ANY OTHER BUSINESS: PUBLIC PARTICIPATION: Public Comments were received. ADJOURNMENT: The City Commission adjourned at 7:16 p.m. Respectfully Submitted, Ann Marie Meisch, MMC, City Clerk Page 10 of 10 Date: June 8, 2016 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Gaming License Request from Lakeshore Museum Center SUMMARY OF REQUEST: The Lakeshore Museum Center is requesting a resolution recognizing them as a non-profit organization operating in the City for the purpose of obtaining a Gaming License. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval Date: June 14, 2016 To: Honorable Mayor and City Commissioners From: CITY CLERK’S OFFICE RE: Special Event Liquor License – Farmers Market SUMMARY OF REQUEST: At the May 9, 2016 Commission meeting, staff requested approval for a special liquor license on June 30, July 7, July 28, August 11, and September 24. After further review, staff has decided not to utilize a liquor license for Thursday events this year. We are requesting to modify the request for a special liquor license on July 30th, September 10th, and September 24th (this date was previously approved by Commission). The two added dates are fundraisers at the market. FINANCIAL IMPACT: $50 permit from the State for every date requested. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve a special liquor license for the dates of July 30, September 10, and September 24, 2016. CITY COMMISSION MEETING DATE June 14, 2016 Date: May 27, 2016 To: Honorable Mayor and City Commissioners From: Cathy Brubaker-Clarke, Director of Community & Economic Development Re: Special Event Request – Burning Foot Beer Festival Request to allow overnight camping at Pere Marquette Park SUMMARY OF REQUEST: The Lakeshore Brewer’s Guild is holding their 2nd annual Burning Foot Beer Festival at Pere Marquette Park on Saturday, August 27, 2016. This year, they are requesting permission to allow tent camping overnight on the beach on Saturday night. They plan to limit the number of tents to 75 for the first year. The designated camping area is 150’ x 250’ and will be defined by a fence as shown on the attached site plan. They will have security present overnight and porta- jons available in the camping area. Event volunteers will be there to check people in. There will be no alcohol in the camping area. In addition, they would like to allow an estimated 24 RVs to park across the street in the large Ovals parking lot on Friday night and Saturday night. The RV’s will be for brewers and festival organizers, who will start setting up on Friday night and Saturday morning. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval COMMITTEE RECOMMENDATION: N/A AGENDA ITEM NO._____________ CITY COMMISSION MEETING ___________________ TO: Honorable Mayor and City Commission FROM: Department of Public Works DATE: June 14, 2016 SUBJECT: Love Bites Treatery Concession Contract for City of Muskegon Parks. SUMMARY OF REQUEST: Staff is asking permission to enter into a 1-year contractual agreement with Devin “Josie” Richardson of Love Bites Treatery LLC, at Kruse Park, located within the City of Muskegon, to sell organic dog treats from a concession stand/informational booth. FINANCIAL IMPACT: Concession revenue is 10% of gross receipts. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Authorize DPW staff to enter into concession agreement with Devin “Josie” Richardson of Love Bites Treatery LLC. COMMITTEE RECOMMENDATION: AGENDA ITEM NO._____________ CITY COMMISSION MEETING ___________________ TO: Honorable Mayor and City Commission FROM: Department of Public Works DATE: June 14, 2016 SUBJECT: Keep in Touch Massage Concession/Business Contract for City of Muskegon Parks. SUMMARY OF REQUEST: Staff is asking permission to enter into a 1-year contractual agreement with Laura Crawford of Keep in Touch Massage, at various parks as outline in attached proposal, located within the City of Muskegon, to provide chair massages. FINANCIAL IMPACT: Concession revenue is 10% of gross receipts. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Authorize DPW staff to enter into concession/business agreement with Laura Crawford of Keep in Touch Massage. COMMITTEE RECOMMENDATION: Commission Meeting Date: June 14, 2016 Date: June 7, 2016 To: Honorable Mayor and City Commissioners From: Jeffrey A. Lewis Director of Public Safety RE: Memorandum of Understanding – Justice Assistance Grant SUMMARY OF REQUEST: The Director of Public Safety requests that the Commission authorize the Director and the City Manager to enter into an agreement with the City of Muskegon Heights and Muskegon County in regards to the disbursement of the FY 2016 Justice Assistance Grant. It is further requested that the Mayor be authorized to sign the Memorandum of Understanding. Note that time is of the essence as this grant requires a 30-day governing body review period and the grant submission and the grant deadline is June 30. Although the Bureau of Justice Assistance has designated us as being in a disparate funding situation due to the County providing more than 50% of the jail facilities, our proposal is to keep the allocations exactly as they initially came down from the BJA which is as follows: County of Muskegon $ 0; City of Muskegon $26,703 and City of Muskegon Heights $19,085. Note that BJA uses crime data versus population in making these allocation decisions. The City of Muskegon portion is planned to be used in continuation of the manner in which the previous year’s JAG funding was used, which is for the prosecution of City ordinance cases dealing primarily with neighborhood issues. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Staff recommends approval of this request. MEMORANDUM OF UNDERSTANDING THE CITY OF MUSKEGON THE COUNTY OF MUSKEGON THE CITY OF MUSKEGON HEIGHTS FY 2016 JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD Regular Funding/Local Solicitation This Agreement is made and entered into on the ________th day of June, 2016, by and between the County of Muskegon, acting by and through its governing body, the Board of County Commissioners, located at 990 Terrace Street, Muskegon, Michigan 49442 and the City of Muskegon, acting by and through its governing body, the City Commission, located at 933 Terrace Street, Muskegon, Michigan 49443-0536, and the City of Muskegon Heights, acting by and through its governing body, the City Council, located at 2724 Peck Street, Muskegon Hts., MI 49444, all of Muskegon County, State of Michigan, witnesseth: WHEREAS, the CITY OF MUSKEGON has agreed to serve as the applicant/fiscal agent for the joint funds under the: Justice Assistance Grant(Local Solicitation) as the Bureau of Justice Assistance has designated the allocation to the law enforcement communities in Muskegon County as a disparate allocation; and WHEREAS, each governing body, in performing governmental functions or in paying for the performance of governmental functions, hereunder, shall make that performance or those payments from current revenues legally available to that party; and WHEREAS, each governing body find that the performance of this Agreement is in the best interest of all parties, that the undertaking will benefit the public, and that the division of costs fairly compensates the performing party for the services or functions under this Agreement; and Page 1 of 3 WHEREAS, the breakdown of allocated funding agreed upon by those entities involved in the disparate funding is $ 26,703 to the CITY OF MUSKEGON and $ 19,085 to the CITY OF MUSKEGON HEIGHTS; and WHEREAS, the CITY OF MUSKEGON, CITY OF MUSKEGON HEIGHTS and COUNTY OF MUSKEGON believe it to be in their best interests to allocate the JAG funds as specified in this Agreement. NOW THEREFORE, THE COUNTY OF MUSKEGON, CITY OF MUSKEGON AND CITY OF MUSKEGON HEIGHTS agree as follows: AGREEMENT 1. THE CITY OF MUSKEGON will act as the fiscal agent/applicant agency. 2. The total eligible joint allocation for the disparate jurisdictions of $ 45,788 will be allocated as follows: COUNTY OF MUSKEGON - $ 0; CITY OF MUSKEGON - $26,703 CITY OF MUSKEGON HEIGHTS - $ 19,085 3. Each municipality will be responsible for its actions in the use of any equipment purchased under this Agreement and the fiscal agent shall not be liable for any civil liability that may arise from the purchase of the use of the equipment. 4. The CITY OF MUSKEGON HEIGHTS will be responsible for submitting quarterly reports to the CITY OF MUSKEGON by the third day of the month following the quarter in the reporting fashion required by the CITY OF MUSKEGON and for any month in which an expenditure under the grant has occurred the CITY OF MUSKEGON HEIGHTS will submit a reimbursement request to the CITY OF MUSKEGON by the third day of the following month along with backup documentation such as invoices. 5. The CITY OF MUSKEGON HEIGHTS will be responsible for the accuracy of all data submitted to the CITY OF MUSKEGON for submission to the Bureau of Justice Page 2 of 3 Programs and will be liable for penalties as a result of submitting the data late and for any inaccurate data. 6. Nothing in the performance of this Agreement shall impose any liability for claims against the CITY OF MUSKEGON passing from this program or from the CITY OF MUSKEGON HEIGHT’s expenditure of the JAG funds. 7. By entering into this Agreement, the parties do not intent to create any obligations, express or implied, other than those set out herein. Further, this Agreement shall not create any rights in any party not a signatory hereto. COUNTY OF MUSKEGON Dated:_______________, 2016 By:____________________________ Terry Sabo, Chairman County Board of Commissioners CITY OF MUSKEGON Dated:_______________, 2016 By:____________________________ Stephen Gawron, Mayor CITY OF MUSKEGON HEIGHTS Dated:_______________, 2016 By:_____________________________ Kimberly Sims, Mayor Page 3 of 3 Commission Meeting Date: June 14, 2016 Date: June 7, 2016 To: Honorable Mayor and City Commission From: Jeffrey Lewis, Director of Public Safety RE: Special Liquor Licenses – Rebel Road ____________________________________________________________________ SUMMARY OF REQUEST: To approve a Special Liquor License for the Child Abuse Council to serve spirits at the following locations, dates and times: LC Walker Arena Parking Lot, 477 W Western Avenue July 14, 2016 from 6PM – midnight July 15, 16, 2016 from 11AM – 12 midnight July 17 from 10AM – 6PM LC Walker Arena Terrace, 470 W Western Avenue July 15, 16, 2016 from 11AM – 12 midnight Sand Lot, 351 W Western Avenue July 15, 16, 2016 from 11AM – 12 midnight Muskegon County Convention & Visitor Bureau, 610 W Western Avenue July 15, 16, 2016 from 11AM – 12 midnight They have already submitted a Special Event Application. Each serving of spirits must be in a pre-measured format. This event is a four-day music and motorcycle festival with food, merchandise vendors, music stages and spirits tents. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Staff recommends approval of this request. Commission Meeting Date: June 14, 2016 Date: June 6, 2016 To: Honorable Mayor & City Commission From: Planning & Economic Development Department RE: Sale of Buildable Vacant Lot at 88 Monroe. SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 88 Monroe to William Galy to combine with his property at 1140 Jefferson St., Muskegon, MI. The lot is 66 x 132 ft. and is being offered to Mr. Galy for $2,500 plus the fee to register the deed. The City has owned the property since December 2013 with no inquiries for potential construction. By combining this with Mr. Galy’s property; this will give him a back yard. The City has spent an average of $202.00 per year in maintenance of the vacant lot since 2013. FINANCIAL IMPACT: The sale of this lot will generate additional tax revenue for the City and will place the property back on the City’s tax rolls thus relieving the City of continued maintenance costs. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the attached resolution and to authorize both the Mayor and the Clerk to sign said resolution and deed. Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION APPROVING THE SALE OF A BUILDABLE LOT AT 88 MONROE FOR $2,500. WHEREAS, William Galy will be allowed to purchase the parcel designated as number 24-205-363-0006-00, located at 88 Monroe for $2,500; and WHEREAS, William Galy will combine this with the property he owns at 1140 Jefferson; and WHEREAS, the sale would generate additional tax revenue for the City and relieve the City of further maintenance costs; and WHEREAS, the sale of a buildable lot would require a home to be constructed; instead he will be combining this with his current property that does have a home; and WHEREAS, he will not be constructing a new home on this parcel; and NOW THEREFORE BE IT RESOLVED, that parcel number 24-205-363-0006-00, located at 88 Monroe to be sold to William Galy for $2,500. CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 6 BLOCK 363. Adopted this 14th day of June, 2016. Ayes: Nays: Absent By: _________________________ Stephen J. Gawron Mayor Attest: ________________________ Ann Meisch, MMC City Clerk I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on June 14, 2016. By: ________________________ Ann Meisch, MMC City Clerk 2 Property sale of 88 Monroe (City owned) to Mr. Galy of 1140 Jefferson to be combined. 1140 Jefferson front: 1140 Jefferson on the Monroe Ave. side: 88 Monroe: QUIT CLAIM DEED KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440, QUIT CLAIMS TO: William Galy, a single man, whose address is 1140 Jefferson, Muskegon, MI 49440. the following described premises situated in the City of Muskegon, County of Muskegon, State of Michigan, to wit: CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 6 BLOCK 363, otherwise known as 88 Monroe Ave. (#24-205-363-0006-00). for the sum of: Two Thousand Five Hundred Dollars ($2,500.00) PROVIDED, HOWEVER, whenever possible, this property is to be combined with the owner’s original parcel #24-205-363-0005-00, otherwise known as 1140 Jefferson St. This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA 207.505(h)(i) and MCLA 207.526 Sec. 6(h)(i). Dated this 14th day of June, 2016 Signed in the presence of: CITY OF MUSKEGON ______________________________ By_________________________________ Stephen J. Gawron, Its Mayor ______________________________ and________________________________ Ann Meisch, MMC, Its Clerk STATE OF MICHIGAN COUNTY OF MUSKEGON The foregoing instrument was acknowledged before me this _____ day of ___________, 2016, by STEPHEN J. GAWRON and ANN MEISCH, MMC, the Mayor and Clerk, respectively, of the CITY OF MUSKEGON, a municipal corporation, on behalf of the City. ____________________________________ PREPARED BY: Hope Mitchell _______________________, Notary Public City of Muskegon Acting in the County of Muskegon, MI 933 Terrace St Rm 202 Muskegon County, MI Muskegon, MI 49440 My Comm. Expires: ___________________ Telephone: (231) 724-6760 WHEN RECORDED RETURN TO: GRANTEE SEND SUBSEQUENT TAX BILLS TO: GRANTEE Date: June 14, 2016 To: Honorable Mayor and City Commissioners From: Engineering RE: MDOT-City 2nd Amendment of the Agreement for Muskegon & Webster SUMMARY OF REQUEST: Authorize staff to sign the attached amendment to the agreement with Michigan Department of Transportation extending the completion date of the project to June 30, 2016 instead of the 5/27/2016 date in previous amendment and adopt a resolution authorizing Mohammed Al-Shatel to execute said agreement. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Authorize Mohammed Al-Shatel to sign the agreement/contract amendment. COMMITTEE RECOMMENDATION: RESOLUTION__________ RESOLUTION FOR APPROVAL TO AMEND CONTRACT AGREEMENT NUMBER 2014-0854/A1BETWEEN THE MICHIGAN DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE RECONSTRUCTION OF MUSKEGON & WEBSTER AVENUES BETWEEN 9TH STREET & SPRING STREET TOGETHER WITH OTHER NECESSARY RELATED WORK ITEMS AND AUTHORIZATION FOR MOHAMMED AL-SHATEL, CITY ENGINEER EXECUTE SAID AMENDMENT EXTENDING THE COMPLETION DATE TO JUNE 30, 2016. Moved by_____________________________________and supported by Commissioner___________________________that the following Resolution be adopted: WHEREAS, entry by the City of Muskegon into Contract no. 2014-0854/A2 between the Michigan Department of Transportation and the City of Muskegon for the reconstruction of Muskegon & Webster Avenues between 9th & spring within the City is in the best interests of the City of Muskegon. RESOLVED, that entry by the City into Contract Agreement Number 2014-0854/A2 be and the same is hereby authorized and approved and Mohammed AL-Shatel, City Engineer is authorized to execute said contract for and on behalf of the City of Muskegon. Adopted this____________day of____________, 2016. BY Stephen J. Gawron, Mayor ATTEST Ann Meisch, City Clerk CERTIFICATION This resolution was adopted at a meeting of the City Commission, held on ____________, 2016. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON By___________________________ Ann Meisch, City Clerk Commission Meeting Date: June 14, 2016 Date: June 8, 2016 To: Honorable Mayor and City Commissioners From: City Manager RE: Transmittal of 2016-17 Proposed Budget SUMMARY OF REQUEST: At this time staff is transmitting to the City Commission the proposed budget for fiscal year 2016-17 which starts July 1, 2016. An electronic version of the budget has been distributed to Commissioners. Additionally, the budget is available for public inspection on the City’s website and at the City Clerk’s office or Hackley Public Library. The proposed budget will be reviewed in detail with staff at the June 13th work session. A public hearing on the budget will be held at the regular Commission meeting the following evening on June 14th. City ordinance requires that the budget be adopted by the Commission on or before the second Commission meeting in June. FINANCIAL IMPACT: The budget is the City’s financial plan for the coming fiscal year. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Approval of the proposed budget for fiscal year 2016-17. http://www.muskegon-mi.gov/cresources/2016-17_Proposed-Budget_-_web_version.pdf Commission Meeting Date: June 7, 2016 Date: June 14, 2016 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Public Hearing - Request to Establish an Obsolete Property District – 1129 3rd St SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Hamburger Mikey, LLC, has requested the establishment of an Obsolete Property District for their property at 1129 3rd St. 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 Obsolete Property District COMMITTEE RECOMMENDATION: None. 1 CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN RESOLUTION NO. _____ A resolution establishing an Obsolete Property Rehabilitation District. The City Commission of the City of Muskegon hereby RESOLVES: Recitals A. The City of Muskegon has been designated as a qualified local government unit for the purpose of establishing Obsolete Property Rehabilitation Districts and approving Applications for Obsolete Property Rehabilitation Exemption Certificates. B. The area located in the land described in this resolution is known to the City Commission and is clearly characterized by the presence of obsolete commercial property, and the land and improvements are obsolete commercial property. C. Notice has been given by certified mail to the owners of all real property within the proposed Obsolete Property Rehabilitation District and a hearing has been held offering an opportunity to all owners and any other resident or taxpayer of the City to appear and be heard. Said notice was given at least ten (10) days before the hearing. NOW, THEREFORE, THE CITY COMMISSION RESOLVES: 1. That the property described in this resolution and proposed as an Obsolete Property Rehabilitation District is characterized by obsolete commercial property. 2. That the obsolete commercial property, the subject of this resolution, as is described in Attachment A. 3. That the City Commission hereby establishes an Obsolete Property Rehabilitation District on the lands and parcels set forth in the attached description. This resolution passed. Ayes __________________________________________________________________ Nays __________________________________________________________________ CITY OF MUSKEGON BY: __________________________________ Stephen J. Gawron Mayor ATTEST: __________________________________ Ann Meisch, City Clerk CERTIFICATION This resolution was adopted at a meeting of the City Commission, held on June 14, 2016. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON By ___________________________ Ann Meisch, City Clerk ATTACHMENT A: PROPERTY DESCRIPTION CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 14 EXC W 3 FT TH'OF & S 1 FT LOT 15 EXC THE W 3 FT TH'OF BLK 367 Commission Meeting Date: June 14, 2016 Date: June 7, 2016 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Public Hearing - Request to issue an Obsolete Property Certificate –Hamburger Mikey, LLC – 1129 3rd St SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Hamburger Mikey, LLC, has requested the issuance of an Obsolete Property Certificate for their property located at 1129 3rd St. Total capital investment for this project is $134,000. The applicant is eligible for a nine-year abatement because of the amount of investment. 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 COMMITTEE RECOMMENDATION: None CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN RESOLUTION NO. _____ A resolution approving the application for an Obsolete Property Rehabilitation Exemption Certificate by Hamburger Mikey, LLC. The City Commission of the City of Muskegon hereby RESOLVES: Recitals A. The City Commission has received an Application for an Obsolete Property Rehabilitation Exemption Certificate from Hamburger Mikey, LLC, to apply to the improvements located in an Obsolete Property Rehabilitation District established by previous resolution. B. The City of Muskegon is a qualified local governmental unit as determined by STC Bulletin No. 9 of 2000, dated July 12, 2000. C. An Obsolete Property Rehabilitation District in which the application property is located was established after a hearing on June 14, 2016. D. The taxable value of the property proposed to be exempt, plus the aggregate taxable value of properties already exempted under PA 146 of 2000 and under PA 198 of 1974, does not exceed five percent (5%) of the total taxable value of the City of Muskegon. E. In the event it is determined that the said taxable values do exceed five percent (5%), the City Commission determines further that the said exceedance will not have the effect of substantially impeding the operation of the City of Muskegon or impairing the financial soundness of any affected taxing units. F. This resolution of approval is considered by the City Commission on June 14, 2016, after a public hearing as provided in Section 4(2) of PA 146 of 2000. The hearing was held on this date. G. The applicant, Hamburger Mikey, LLC, is not delinquent any taxes related to the facility. H. The exemption to be granted by this resolution is for nine (9) years. I. The exemption was approved for less than the maximum of twelve (12) years and there will not be any extension available. J. All items described under “Instructions” (a) through (f) of the application for Obsolete Property Rehabilitation Exemption Certificate have been provided to the City of Muskegon, the Qualified Local Government Unit, by the applicant. K. The City Commission finds that the property for which the Obsolete Property Rehabilitation Exemption Certificate is sought is obsolete property within the meaning of Section 2(h) of Public Act 146 of 2000 in that the property, which is commercial, is functionally obsolete. The City has received from the applicant all the items required by Section 9 of the application form, being the general description of the obsolete facility, a general description of the proposed use, a description of the general nature and extent of the rehabilitation to be undertaken, a descriptive list of fixed building equipment that will be part of the rehabilitated facility, a time schedule for undertaking and complete the rehabilitation, and statement of the economic advantages expected from the exemption. L. Commencement of the rehabilitation has not occurred before the establishment of the district. M. The application relates to a rehabilitation program that when completed will constitute a rehabilitated within the meaning of PA 146 of 2000 and will be situated within the Obsolete Property Rehabilitation District established by the City under PA 146 of 2000. N. Completion of the rehabilitated facility is calculated to and will, at the time of the issuance of the Certificate, have the reasonable likelihood to increase commercial activity and create employment; it will revitalize an urban area. The rehabilitation will include improvements aggregating more than ten percent (10%) of the true cash value of the property at the commencement of the rehabilitation. O. The City Commission determines that the applicant shall have twelve (12) months to complete the rehabilitation. It shall be completed by June 14, 2017, or one year after the Certificate is issued, whichever occurs later. P. That notice pursuant to statute has been timely given to the applicant, the assessor for the City of Muskegon, representatives of the affected taxing units and the general public. NOW, THEREFORE, THE CITY COMMISSION RESOLVES: 1. Based upon the statements set forth in, and incorporating the recitals to this resolution, the City Commission hereby approves the application filed by Hamburger Mikey, LLC, for an Obsolete Property Rehabilitation Exemption Certificate, to be effective for a period of nine (9) years; 2. BE IT FURTHER RESOLVED, that this resolution of approval relates to the property set forth in Attachment A, the legal description containing the facilities to be improved; 3. BE IT FURTHER RESOLVED, that, as further condition of this approval, the applicant shall comply with the representations and conditions set forth in the recitals above and in the application material submitted to the City. This resolution passed. Ayes: __________________________________________________________________ Nays: __________________________________________________________________ CITY OF MUSKEGON BY: __________________________________ Stephen J. Gawron Mayor ATTEST: __________________________________ Ann Meisch, City Clerk CERTIFICATE This resolution was adopted at a meeting of the City Commission held on June 14, 2016. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON By ___________________________ Ann Meisch, City Clerk ATTACHMENT A: PROPERTY DESCRIPTION CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 14 EXC W 3 FT TH'OF & S 1 FT LOT 15 EXC THE W 3 FT TH'OF BLK 367
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