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CITY OF MUSKEGON CITY COMMISSION MEETING AUGUST 22, 2017 @ 5:30 P.M. MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 AGENDA □ CALL TO ORDER: □ PRAYER: □ PLEDGE OF ALLEGIANCE: □ ROLL CALL: □ HONORS AND AWARDS: □ INTRODUCTIONS/PRESENTATION: A. Muskegon Lake Area of Concern Update – Kathy Evans from WMSRDC □ CITY MANAGER’S REPORT: □ CONSENT AGENDA: A. Approval of Minutes City Clerk B. Justice Assistance Grant Public Safety C. Frank’s Taco Shack Concession Contract Department of Public Works D. City-MDOT Agreement; Laketon from Getty to Creston (H1706-123986A) Department of Public Works E. Roof Replacement – Water Filtration Plant Administration Building Department of Public Works/Water Filtration F. Consideration of Bids – City Hall Washing and Sealing Department of Public Works - Engineering G. Approval of Building Contract for 1350 Eastwood Drive Community and Neighborhood Services H. Adopt a Resolution Approving the Liquor License Application for Pigeon Hill Brewing Co., LLC as a Mixed Spirit Drink Manufacturer and Small Distiller at 441 W. Western City Clerk Page 1 of 2 Hill Brewing Co., LLC as a Small Distiller at 500 W. Western Avenue City Clerk J. Certification of MERS Representative Finance K. Approval of a Neighborhood Enterprise Zone Certificate – 321 Terrace Point Circle Planning & Economic Development □ PUBLIC HEARINGS: A. Request for the Establishment of an Industrial Development District at 700 Terrace Point Drive Planning & Economic Development □ COMMUNICATIONS: □ UNFINISHED BUSINESS: □ NEW BUSINESS: A. Concurrence with the Housing Board of Appeals Notice and Order to Demolish the Following: 1047 Wood Street 1826 Ray Street B. Approval to Purchase Property from the Michigan Department of Transportation Planning & Economic Development C. Convention Center City Manager D. Sale of Parking Lot City Manager – REMOVED PER STAFF REQUEST □ 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: □ 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. Page 2 of 2 Memorandum To: Mayor and Commissioners From: Frank Peterson Re: City Commission Meeting Date: August 18, 2017 Here is a quick outline of the items on our agenda(s): REGULAR MEETING 1. Under Presentations, we will have one item: a. Members from the Muskegon Watershed Partnership will be in attendance to give an update on Muskegon Lake’s Area of Concern status. 2. Under the consent agenda, we are asking the Commission for approval of the following: a. Last meeting’s minutes. b. A Justice Assistance Grant Agreement with Muskegon County that outlines how the annual Justice Assistance Grant allocation will be split among the eligible cities. The City of Muskegon’s portion will be $24,226 of the total $39,155. c. A concession agreement with Frank’s Taco Shack to operate for the rest of the season at Pere Marquette Park. This is no relation to me d. The MDOT reconstruction contract for Laketon Ave (from Getty to Creston). The total project cost is $2.2 Million, with $1.16 Million coming from federal funds and $1.04 Million coming from local funds. e. An agreement with Bob’s Roofing to replace a roof at the water filtration plant. They were the lowest bidder at $66,000. f. An agreement with DC Byers of Grand Rapids to power wash, caulk, and seal city hall. They were the lowest bidder at $67,147. g. Building contact for 1350 Eastwood. The original contractor is unable to complete the job, so we are moving on to the next bidder. The base contract is $109,825. h. A liquor license for Pigeon Hill Brewing at 441 West Western Ave for mixed spirits and distilling. i. A liquor license for Pigeon Hill Brewing at 500 West Western Ave for distilling. j. A Resolution appointing Ken Grant and Howard Usher as employee delegates for the City at the annual MERS conference. k. An enterprise zone certificate for 321 Terrace Point Circle. The new home has a construction value of $260,865. 3. Under new business, we will be asking the Commission to approve the following: a. We will be asking the City Commission to concur with the Housing Board of Appeals on the demolition of two homes. We expect them to be demolished in the next 60 days. b. Purchase of former MDOT right-of-way adjacent to city owned parcels on Webster Ave and Muskegon Ave between 8th Street and 9th Street. The purchase price is $7,700. c. Letter of Intent to partner with Muskegon County and Parkland Properties to fund and build a downtown convention center adjacent to the LC Walker Arena and the Holiday Inn. This was a topic of last week’s work session. The city would own and finance the center, but the dollars used to pay for the debt and operating would come from Muskegon County and Parkland Properties. d. Sale of a portion of the city parking lot on Shoreline Drive to Pigeon Hill Brewing to facility the expansion of their business in Muskegon. PHB has been looking for suitable space to expand in the downtown area for a number of months. This sale will allow them to build their brewery to meet current and future needs. We expect the location to help build a downtown connection to the water-side of Shoreline Drive, as their facility will be offering brewery tours and beer tastings. The facility will also hold their corporate office. This move is expected to give them the space they need to expand their distribution business and construct a new taproom at 441 West Western. The sale price is based on a price-per square foot comparison on a similar property on Ottawa Avenue. Although the $20,000 price tag may seem low, the goal of staff is really to activate this parcel, encourage the growth of Pigeon Hill within the downtown, and begin to build a connection from downtown to the lakeshore. The project will start quickly, with build out likely complete in 6-9 months. Let me know if you have any questions/comments/concerns Date: August 16, 2017 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve minutes of the July 25, 2017 Regular City Commission Meeting and the minutes of the August 7, 2017 Worksession Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. CITY OF MUSKEGON CITY COMMISSION MEETING JULY 25, 2017 @ 5:30 P.M. MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 MINUTES The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, July 25, 2017. Elder Holmes, Holy Trinity 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, Debra Warren, Byron Turnquist, and Willie German, Jr., City Manager Franklin Peterson, City Attorney John Schrier, and City Clerk Ann Meisch. Absent: Commissioner Dan Rinsema-Sybenga 2017-60 CONSENT AGENDA: A. Approval of Minutes City Clerk SUMMARY OF REQUEST: To approve minutes of the July 10, 2017 Worksession Meeting and the July 11, 2017 Regular Meeting. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the minutes. D. Beach Tractor DPW/Equipment SUMMARY OF REQUEST: The Equipment Division is requesting permission to purchase a Beach Tractor from J & J Farm Sales, the lowest qualified bidder with a price of $59,915.00. This price includes a trade in of our current tractor for $12,000.00. FINANCIAL IMPACT: $59,915.00 BUDGET ACTION REQUIRED: None. Amount is what was budgeted. STAFF RECOMMENDATION: Authorize staff to purchase on Beach Tractor from J & J Farm Sales for the price of $59,915.00. Page 1 of 7 F. LC Walker Arena Locker Room Plumbing City Manager SUMMARY OF REQUEST: The locker rooms A-F are in need of plumbing repairs/upgrades in the shower areas. In total, 16 shower assemblies will be replaced at a cost of $1,007.68 each. The total cost of the 16 assemblies is $16,123.00. FINANCIAL IMPACT: $16,123.00 BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Authorize Arena Management to accept the $16,123.00 proposal from Lascko Plumbing and Mechanical, LLC. G. Rebid the Demolition of 1290 Wood Street Public Safety SUMMARY OF REQUEST: This is to request that the City Commission direct staff to rebid the demolition of 1290 Wood Street and to award all or part of the demolition to the lowest responsible bidder. The City Commission had concurred with the Housing Board of Appeals that the structure at 1290 Wood was unsafe, substandard, a public nuisance, and that the structure be demolished at the meeting of January 10, 2017. FINANCIAL IMPACT: General Funds BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To have staff rebid the demolition reflecting the changes from the original bid and to award the bid to the lowest responsible bidder. H. Michigan Natural Resources Trust Fund Grant Development Project Agreement for Pere Marquette Park Recreational Improvements and Defined Match Amount Planning & Economic Development & Public Works SUMMARY OF REQUEST: The City had received the Michigan Natural Resources Trust Fund Grant Development Project Agreement for the Pere Marquette Park Project Improvements. The State has requested that the development agreement and the defined contribution agreement be signed. Work may begin on the project once the State approved the agreements. FINANCIAL IMPACT: There is no impact for the 2017 to 2019 budget years have this budgeted. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the resolution approving the Development Project Agreement for the Pere Marquette Park Recreational Improvements and to guarantee the defined match funds, and to have the Mayor and Clerk sign the Development Project Agreement and resolution. Page 2 of 7 I. Adopt the revised WaterMain Standard Construction Specifications – Division 13 DPW – Engineering SUMMARY OF REQUEST: Adopt the watermain specification revising the currently used standards for watermain construction effective immediately. The proposed revisions are necessary to incorporate new materials and construction methods. The City’s standard construction specifications, including the watermain section, were last revised in 2010. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Adopt the revision and authorize engineer to sign and seal revised specifications. J. Rezoning Request for the Property at 1361 S. Getty Street Planning and Economic Development SUMMARY OF REQUEST: Request to rezone the property at 1361 S. Getty Street from B-1, Limited Business District to B-4, General Business District by Laquan Robinson. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the rezoning COMMITTEE RECOMMENDATION: The Planning Commission unanimously recommended approval of the request at their July 13 meeting. They also unanimously voted to approve a Special Use Permit to allow for a car sales lot, contingent upon the rezoning of the property to B-4. K. Rezoning Request for Several Properties to R-2, Single Family Medium Density Residential District Planning & Economic Development SUMMARY OF REQUEST: Staff initiated request to rezone several properties from R-1, Single Family Low Density Residential District to R-2, Single Family Medium Density Residential District. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the rezoning. COMMITTEE RECOMMENDATION: The Planning Commission unanimously recommended approval of the request at their July 13 meeting. L. Rezoning Request for Several Properties to R-3, Single Family High Density Residential District Planning & Economic Development Page 3 of 7 SUMMARY OF REQUEST: Staff initiated request to rezone several properties from R-1, Single Family Low Density Residential District to R-3, Single Family High Density Residential District. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the rezoning. COMMITTEE RECOMMENDATION: The Planning Commission unanimously recommended approval of the request at their July 13 meeting. M. Revocation of a Commercial Facilities Exemption Certificate – 165 Clay, LLCPlanning & Economic Development SUMMARY OF REQUEST: Pursuant to Public Act 255 of 1978, as amended, staff is recommending the revocation of the Commercial Facilities Exemption Certificate granted to 165 Clay, LLC for failure to complete the project. On May 12, 2015, a 12-year certificate was granted for a project that was to include $336,000 in renovations at 165 W. Clay Avenue. The property owner is agreeable to the revocation. FINANCIAL IMPACT: The real property will be taxed at the normal rate and will no longer be frozen. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Revocation of the Commercial Facilities Exemption Certificate. N. Revocation of a Commercial Facilities Exemption Certificate – 896 Jefferson, LLC Planning & Economic Development SUMMARY OF REQUEST: Pursuant to Public Act 255 of 1978, as amended, staff is recommending the revocation of the Commercial Facilities Exemption Certificate granted to 896 Jefferson, LLC for failure to complete the project. On May 12, 2015, a 12-year certificate was granted for a project that was to include $70,000 in renovations at 896 Jefferson Street. The property owner is agreeable to the revocation. FINANCIAL IMPACT: The real property will be taxed at the normal rate and will no longer be frozen. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Revocation of the Commercial Facilities Exemption Certificate. Motion by Commissioner Johnson, second by Vice Mayor Hood, to approve the consent agenda as presented, except items B, C, and E. ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and German Page 4 of 7 Nays:None MOTION PASSES 2017-61 ITEMS REMOVED FROM CONSENT AGENDA: A. Farmers Market Liquor License City Clerk SUMMARY OF REQUEST: To finalize the application process for our permanent liquor license by authorizing signors, approving the use of the outdoor seating area, cancelling our request for a specific purpose permit, and approving a new Sunday Sales permit. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve the request and authorize the Mayor to sign the letter to the Michigan Liquor Control Commission on behalf of the City Commission. Motion by Commissioner Warren, second by Commissioner German, to approve the request and authorize the Mayor to sign the letter to the Michigan Liquor Control Commission on behalf of the City Commission. ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and German Nays: None MOTION PASSES B. Appointment of Treasurer Position Finance SUMMARY OF REQUEST: To appoint Sarah Petersen as the new City Treasurer effective August 7, 2017. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: After interviewing nine candidates the City Manager, Finance Director, and the Assistant Finance Director agree to offer the Treasurer’s position to Sarah Petersen. Motion by Commissioner German, second by Commissioner Johnson, to appoint Sarah Petersen as the new City Treasurer effective August 7, 2017. ROLL VOTE: Ayes: Warren, German, Turnquist, Johnson, Gawron, and Hood Nays: None MOTION PASSES E. Tahoe Police Cruisers DPW/Equipment SUMMARY OF REQUEST: The Equipment Division is requesting permission to purchase three Tahoe police cruisers from Berger Chevrolet, the Mi-Deal State Page 5 of 7 Contract holder for a purchase price of $35,246.00 each. FINANCIAL IMPACT: $35,246 each for a total of $105,738.00 BUDGET ACTION REQUIRED: None. Amount is what was budgeted. STAFF RECOMMENDATION: Authorize staff to purchase three Tahoe police cruisers from Berger Chevrolet. Motion by Commissioner German, second by Commissioner Warren, to authorize staff to purchase three Tahoe police cruisers from Berger Chevrolet. ROLL VOTE: Ayes: German, Turnquist, Johnson, Gawron, Hood, and Warren Nays: None MOTION PASSES 2017-62 NEW BUSINESS: A. Concurrence with the Housing Board of Appeals Notice and Order to Demolish the Following: Public Safety 407 Monroe Avenue – Garage Only 338 Mason Avenue – Garage Only SUMMARY OF REQUEST: This is to request that the City Commission concur with the findings of the Housing Board of Appeals that the garage structures are unsafe, substandard, a public nuisance, and that they be demolished within 30 days. It is further requested that administration be directed to obtain bids for the demolition of the structures and that the Mayor and City clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder or staff may issue infraction tickets to the owner, agent or responsible party if they do no demolish the structure. FINANCIAL IMPACT: General Funds BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision to demolish the garage structures only. Motion by Vice Mayor Hood, second by Commissioner German, to concur with the Housing Board of Appeals decision to demolish the garage structures only. ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and German Nays: None MOTION PASSES B. Food Truck Registration Fees City Clerk SUMMARY OF REQUEST: This is a request to adjust the mobile food vending fee to $50 for those food truck vendors that participate in the Muskegon Farmers Page 6 of 7 Market Food Truck Rallies. This is something that was made available to Taste of Muskegon Participants. This registration will be good through April 30th of the following year. Currently mobile food vendors outside the City limits are required to pay $300 annually, those having restaurants in the City of Muskegon have a fee of $150, and those with a brick and mortar business in the downtown development district pay $50 annually. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval. Motion by Commissioner Johnson, second by Vice Mayor Hood, to adjust the mobile food vending fee to $50 for those food truck vendors that participate in the Muskegon Farmers Market Food Truck Rallies. ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and German Nays: None MOTION PASSES 2017-63 ANY OTHER BUSINESS: The City’s Engineer, Mohammed Al-Shatel, addressed the City Commission regarding mechanical problems with our Mueller CL-12 tapping machine which is used exclusively to make larger water main taps from 4 inches to 12 inches. It is a specialized piece of equipment and must be sent to the original manufacturer, Mueller Co., for repairs. The Mueller Company recommends reconditioning and a rebuild including new internal parts and a new boring bar for $12,576. Motion by Commissioner Johnson, second by Commissioner Turnquist, to approve the emergency repairs – not to exceed $13,000. ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, and German Nays: None MOTION PASSES PUBLIC PARTICIPATION: Public Comments were received. ADJOURNMENT: The City Commission meeting adjourned at 6:35 p.m. Respectfully Submitted, Ann Marie Meisch, MMC, City Clerk Page 7 of 7 CITY OF MUSKEGON CITY COMMISSION WORKSESSION MEETING AUGUST 7, 2017 @ 5:30 P.M. MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 WORKSESSION MINUTES 2017-64 Present: Gawron, Hood, Warren, German, Rinsema-Sybenga, Johnson, and Turnquist Absent: None PRESENTATION: Muskegon Convention Center Presentation Jonathan Wilson & Doug Pollock Muskegon County, Convention and Visitors Bureau, and Holiday Inn Representatives made a presentation to the City Commission regarding a public/private partnership that the parties believe will result in a sustainable convention center for downtown Muskegon. The partnership would include the City of Muskegon, Muskegon County, and Parkland Properties. The presentation covered the following components: a. A commitment from the owners of the Shoreline Inn and the Holiday Inn to assess a 4% assessment on their room rates for a period of 20 years, and to transfer 100% of those dollars to the County via the Convention and Visitors Bureau to market Muskegon County. b. A commitment from Muskegon County to allocate a portion of current accommodation tax revenue to cover the debt service of a new convention center. c. A commitment from the City of Muskegon to undertake the buildout of the convention center (and own the facility). d. A commitment from Parkland Properties to operate, manage, and market the facility at no cost to the City, with Parkland responsible for all profits/losses associated with the operation of the facility. Page 1 of 5 e. A commitment to create a reserve fund to cover costs associated with maintenance and upgrades throughout the 20 year debt period. 2017-65 CONSENT AGENDA: A. Easement over C.E. Property by the Cobb Plant for Bike Trail Engineering SUMMARY OF REQUEST: Accept the easement agreement from C.E. for the existing bike path on their property along the Cobb Plant/Causeway and authorize the mayor and clerk to sign said agreement. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends that a 15’ easement be granted to the Mazureks. D. Set Public Hearing for the Downtown Development Plan and Tax Increment Financing Plan Planning SUMMARY OF REQUEST: To approve the resolution setting a public hearing for an amendment to the Downtown Development (DDA) Plan and Tax Increment Financing (TIF) Plan, and notifying the taxing jurisdictions of the plan amendment including the opportunity to express their views and recommendations regarding the proposed amendment at the public hearing. The proposed amendment is to remove and add certain properties to the TIF and to extend the duration of the plan. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor and Clerk to sign the resolution. E. Special Liquor License for Farm-to-Table Fundraiser Dinner at Farmers Market Clerk SUMMARY OF REQUEST: The Muskegon Farmers Market will be hosting Farm-to- Table Fundraiser Dinner on Friday, September 8, 2017 at the Farmers Market and we are requesting a liquor license for beer and wine. Proceeds will benefit the Farmers Market. FINANCIAL IMPACT: $50 permit from the State for every date requested and $75 bond. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the request. Page 2 of 5 G. Rezoning Request for Several Properties to R-2, Single Family Meduim Density Residential District Planning & Economic Development (SECOND READING) SUMMARY OF REQUEST: Staff initiated request to rezone several properties from R-1, Single Family Low Density Residential District to R-2, Single Family Medium Density Residential District. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Staff recommends approval of the rezoning. H. Rezoning Request for Several Properties to R-3, Single Family High Density Residential District Planning & Economic Development (SECOND READING) SUMMARY OF REQUEST: Staff initiated request to rezone several properties from R-1, Single Family Low Density Residential District to R-3, Single Family High Density Residential District. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Staff recommends approval of the rezoning. Motion by Commissioner Johnson, second by Commissioner Warren, to approve the consent agenda as presented, except items B, C, and F. ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, Warren, and German Nays: None MOTION PASSES 2017-66 ITEMS REMOVED FROM CONSENT AGENDA: B. Vehicle Based Utility Meter Reading System Engineering SUMMARY OF REQUEST: Authorize staff to purchase a new vehicle based reading system (Sensus Flexnet Vehicle Gateway Base Station with Software) for $26,500 from ETNA Supply Company to read our customers’ water meters. Sensus Metering Systems is in the process of discontinuing the current radio (model 510R). Our current vehicle based reading system can only read the older 510R radios, while the new vehicle based reading system will only read the newer radios (510) thus both reading systems will be needed until we complete the switch over of all of our radios. FINANCIAL IMPACT: Total Cost $26,500. BUDGET ACTION REQUIRED: None. Page 3 of 5 STAFF RECOMMENDATION: Authorize staff to purchase a new vehicle based reading system from ETNA Supply Co. (Sole Sources due to the type of meters the city uses. Motion by Commissioner Johnson, second by Commissioner German, to authorize staff to purchase a new vehicle based reading system from ETNA Supply Co. ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and Rinsema-Sybenga Nays: None MOTION PASSES C. Consideration of Bids for Paving of Hartford, Pine, & Diana (H-1712, W-756, S-679_ Engineering SUMMARY OF REQUEST: To award above referenced project to C & D Hughes, Inc. since they were the lowest responsible bidder with a total bid price of $489,990.20. This award, if approved, requires revisions to the 17/18 budgeted amount via the 1st quarterly reforecast. The increase is due to a much more extensive work needs than was anticipated during the budget. FINANCIAL IMPACT: The construction cost of $489, 990.20 plus engineering cost of an additional 15%. BUDGET ACTION REQUIRED: Revise the budgeted amount via the 1st quarterly reforecast. STAFF RECOMMENDATION: Award the contract to C & C Hughes, Inc. for a bid price of $489,990.20 and revise the CIP amounts in the 17/18 C.I.P. budget via the 1st Quarterly Reforecast. This is a prevailing wage job. Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson, to award the contract to C & D Hughes, Inc. for a bid price of $489,990.20 and revise the CIP amounts in the 17/18 C.I.P. budget via the 1st Quarterly Reforecast. ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga, and Turnquist. Nays: None MOTION PASSES F. Permanent Traffic Control Order – Removal of Traffic Signals and Installation of Permanent 4-way “STOP” signs at Muskegon Avenue @ 3rd Street per TCO #32-(2017) and at Webster Avenue@ 3rd Street per TCO #33- (2017) DPW Page 4 of 5 SUMMARY OF REQUEST: Authorize the removal of Traffic Signals and installation of permanent 4-way “Stop” signs at Muskegon Ave. at 3rd Street and Webster Avenue at 3rd per Traffic Control Orders #32-(2017) and #33-(2017). FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Remove Traffic Signals and install permanent 4-way “Stop” signs at Muskegon Avenue, at 3rd Street and Webster Avenue at 3rd Street, per Traffic Control Orders #32-(2017) and #33-(2017). Motion by Commissioner Warren, second by Commissioner German, to remove traffic signals and install permanent 4-way “Stop” signs at Muskegon Avenue @ 3rd Street and Webster Avenue @ 3rd Street, per Traffic Control Orders #32-(2017) and #33-(2017). ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga, Turnquist, and Johnson Nays: None MOTION PASSES 2017-67 ANY OTHER BUSINESS: A letter of support is needed for Muskegon County to apply for grant funds for FY2018 Michigan Medicaid CHIP Lead Hazard Control Grant. Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson, to authorize the Mayor to sign the CNS letter. ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist, Johnson, and Gawron Nays: None MOTION PASSES ADJOURNMENT: The City Commission meeting adjourned at 7:15 p.m. Respectfully Submitted, Ann Marie Meisch, MMC, City Clerk Page 5 of 5 Date: August 22, 2017 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 2017 Justice Assistance Grant. It if 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 governing body review period and the grant submission and the grant deadline is September 5. 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 $24,226 and City of Muskegon Heights $14,929. 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 2017 JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD Regular Funding/Local Solicitation This Agreement is made and entered into on the _______ day of ___________, 2017, 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 $ 24,226 to the CITY OF MUSKEGON and $ 14,929 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 $ 39,155 will be allocated as follows: COUNTY OF MUSKEGON - $ 0; CITY OF MUSKEGON - $24,226 CITY OF MUSKEGON HEIGHTS - $ 14,929 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:_______________, 2017 By:____________________________ Benjamin E. Cross, Chairman County Board of Commissioners CITY OF MUSKEGON Dated:_______________, 2017 By:____________________________ Stephen Gawron, Mayor CITY OF MUSKEGON HEIGHTS Dated:_______________, 2017 By:_____________________________ Kimberley Sims, Mayor Page 3 of 3 AGENDA ITEM NO._____________ CITY COMMISSION MEETING ___________________ TO: Honorable Mayor and City Commission FROM: Department of Public Works DATE: August 22, 2017 SUBJECT: Frank’s Taco Shack Concession/Business Contract for City of Muskegon Parks. SUMMARY OF REQUEST: Staff is asking permission to enter into a 1-year seasonal contractual agreement, for 2017, with Frank Galindo of Frank’s Taco Shack, at Pere Marquette Park, located within the City of Muskegon, to sell various items, as stated in their proposal, from a mobile concession. FINANCIAL IMPACT: Concession revenue is 10% of gross receipts. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Enter into a 1-year seasonal Concession/Business contractual agreement, for 2017, with Frank Galindo of Frank’s Taco Shack. COMMITTEE RECOMMENDATION: Date: August 22, 2017 To: Honorable Mayor and City Commissioners From: Engineering RE: City – MDOT Agreement; Laketon, Getty to Creston (H-1706 – 123986A) SUMMARY OF REQUEST: Approve the attached contract with MDOT for the reconstruction of Laketon Ave. between Getty & Creston and approve the attached resolution authorizing the Mayor and City Clerk to sign the contract. FINANCIAL IMPACT: MDOT’s participation is limited to the approved federal funds of $1,160,000. The estimated total construction cost is $2.2 million plus engineering cost. BUDGET ACTION REQUIRED: none at this time STAFF RECOMMENDATION: Approve the attached contract and resolution authorizing the mayor & clerk to sign both. COMMITTEE RECOMMENDATION: RESOLUTION__________ RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE MICHIGAN DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE RECONSTRUCTION OF LAKETON AVE., FROM GETTY TO CRESTON. TOGETHER WITH OTHER NECESSARY RELATED WORK ITEMS AND AUTHORIZATION FOR MAYOR STEPHEN J. GAWRON AND CITY CLERK, ANN MEISCH, TO EXECUTE SAID CONTRACT Moved by_____________________________________and supported by Commissioner___________________________that the following Resolution be adopted: WHEREAS, entry by the City of Muskegon into Contract no. 17-5353 between the Michigan Department of Transportation and the City of Muskegon for the Reconstruction of Laketon Av. From Getty to Creston within the City is in the best interests of the City of Muskegon. RESOLVED, that entry by the City into Contract Agreement Number 17-5353 be and the same is hereby authorized and approved and the Mayor and Clerk are authorized to execute said contract for and on behalf of the City of Muskegon. Adopted this____________day of____________, 2017. BY Stephen J. Gawron, Mayor ATTEST Ann Meisch, City Clerk CERTIFICATION This resolution was adopted at a meeting of the City Commission, held on ____________, 2017. 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 Date: 8/22/2017 To: Honorable Mayor and City Commissioners From: Department of Public Works - Filtration RE: Roof Replacement - Water Filtration Plant -Administration Building SUMMARY OF REQUEST: Authorize staff to enter into a roof replacement agreement at Water Filtration Plant - Administration Building with Bob’s Roofing since they submitted the lowest responsible bid of $66,000. FINANCIAL IMPACT: $66,000 BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Authorize staff to enter into an agreement with Bob’s Roofing for a cost of $66,000. O:\CLERK\Common\Word\Agenda Items for Next Meeting\2017\082217\07a_roof_Commission Agenda Item - Water Filtration Plant Adminsitration Building Roof Replacement 8-22-2017.doc THE GARLAND COMPANY, INC. HIGH PERFORMANCE ROOFING AND FLOORING SYSTEMS 3800 EAST 91 STREET • CLEVELAND, OHIO 44105-2197 PHONE: (216) 641-7500 • FAX: (216) 641-0633 NATIONWIDE: 1-800-321-9336 August 10, 2017 TJ Morris 2085 Marva Ave. Muskegon, MI 49444 Sanjeev Mungarwadi Phone: (616) 502-6817 Muskegon, City of Email: tmorris@garlandind.com Water Filtration Plant 1900 Beach St. Muskegon, MI 49441 Sanjeev, The summary of the roof assessment is listed below. We inspected each section to provide information on existing conditions of the roof system and deck. Once we had this information we were able to provide corresponding budgets (see attached map) for required work based on the future needs of the city. This is a condensed version of the full RAMP reported provided at the end of 2016. Section #4 Condition: Failed Recommendation: Replacement Details: The existing ballasted EPDM roof has “failed”. The termination bar is starting to pull from the wall due to the shrinking of the rubber membrane. We have scanned the roof with a nuclear imaging camera to see how wet the insulation is. Unfortunately, the insulation came back more than 75% wet. Due to these conditions, the only way to fix the issues are to replace the roof. As we discussed earlier this month, once budgets are approved, we can schedule a roof replacement for this fall. Bob’s Roofing won the bid with a quote of $66,000. They are a quality contractor that will do great work and stand behind it. The disparity in bids are a direct result of the fact Bob’s had an open schedule this fall and wanted the work, and get a good deal on a crane. This roof is in dire need of a replacement that is designed properly, and will last against the harsh weather conditions the water filtration plant experiences. Sincerely, TJ Morris Roof Management Specialist The Garland Company, Inc. Date: August 22, 2017 To: Honorable Mayor and City Commissioners From: DPW-Engineering RE: Consideration of Bids City Hall Washing and Sealing SUMMARY OF REQUEST: Authorize staff to enter into an agreement with D.C. Byers out of Grand Rapids to wash, caulk and seal City hall for a bid price of $67,147 (without performance bond) since they submitted the lowest bid upon an on-site meeting with two contractors, the other bid was Helms Caulking for $76,250). FINANCIAL IMPACT: $67,147. BUDGET ACTION REQUIRED: A budget adjustment needs to be made since the budgeted amount was only $30,000 in the 17/18 CIP under general fund. STAFF RECOMMENDATION: Authorize staff to enter into an agreement with D.C. Byers as per the attached proposal and authorize the necessary budget adjustment via the 1st quarterly reforecast. COMMITTEE RECOMMENDATION: Commission Meeting Date: August 22, 2017 Date: August 14, 2017 To : Honorable Mayor and City Commission From: Community and Neighborhood Services Department RE : Approval of Building Contract for 1350 Eastwood Drive ____________________________________________________________________________________________ SUMMARY OF REQUEST: To award the Building Contract for the rehabilitation of 1350 Eastwood Drive to TK Construction for the City of Muskegon’s Homebuyers Program through CNS. CNS received 2 bids as listed on the attached sheet; the cost estimate from our spec writer was $80,500. FINANCIAL IMPACT: The funding for this project has been secured with 2016 HOME Funds. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To award TK Construction the rehabilitation contract for 1350 Eastwood Drive; in the amount of $ 111,275.00, for the Community and Neighborhood Services Office. COMMITTEE RECOMMENDATION: None required. Community and Neighborhood Services MEMO City of Muskegon 933 Terrace Second Floor Muskegon, MI 49442 Ph: 231-724-6717 Fax: 231-726-2501 Date: June 28, 2017 To: Bidders regarding 1350 Eastwood Drive From: Oneata Bailey, Director Community and Neighborhood Services City of Muskegon Re: Bid Results Community and Neighborhood Services received the following bid proposals: CONTRACTOR Total Bid Price* Nassau Construction LLC $ 95,500 ***with Alternative Bid $100,300 TK Construction $109,825 ***with Alternative Bid $111,275 ***Alternative Bids for Hardwood Floor Repair/Sprinkler Repair The City of Muskegon reserves the right to accept or reject any and all bids. The City of Muskegon is also not restricted to accept the lowest bid. We appreciate everyone’s interest in being a part of the City of Muskegon’s neighborhood revitalization efforts. The selected bidder will be contacted in the next few days. OB Date: August 16, 2017 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Adopt a Resolution Approving the Liquor License Application for Pigeon Hill Brewing Co., LLC as a Mixed Spirit Drink Manufacturer and Small Distiller at 441 W. Western Avenue SUMMARY OF REQUEST: To Adopt a Resolution Approving the Liquor License Application for Pigeon Hill Brewing Co., LLC as a Mixed Spirit Drink Manufacturer and Small Distiller at 441 W. Western Avenue The primary purpose of seeking these licenses is to allow production of packaged cocktails. A cocktail in a can or a keg. Those kegs/cans would then be made available for sale throughout their distribution network. While some of the products could be made available in the taproom, there are no plans to turn the taproom into a cocktail bar or to add straight spirits to the menu. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Adopt a resolution approving the request of Pigeon Hill Brewing Co., LLC for a liquor license as a Mixed Spirit Drink Manufacturer and Small Distiller at 441 W. Western Ave. Date: August 16, 2017 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Adopt a Resolution Approving the Liquor License Application for Pigeon Hill Brewing Co., LLC as a Small Distiller at 500 W. Western Avenue SUMMARY OF REQUEST: To Adopt a Resolution Approving the Liquor License Application for Pigeon Hill Brewing Co., LLC as a Small Distiller at 500 W. Western Avenue The primary purpose of seeking these licenses is to allow production of packaged cocktails. A cocktail in a can or a keg. Those kegs/cans would then be made available for sale throughout their distribution network. While some of the products could be made available in the taproom, there are no plans to turn the taproom into a cocktail bar or to add straight spirits to the menu. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Adopt a resolution approving the request of Pigeon Hill Brewing Co., LLC for a liquor license as a and Small Distiller at 500 W. Western Ave. Commission Meeting Date: August 22, 2017 Date: August 17, 2017 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Approval of a Neighborhood Enterprise Zone Certificate - 321 Terrace Point Circle SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from Kevin and Kim Durnell for the new construction of a home at 321 Terrace Point Circle. This unit is already under construction and the State Tax Commission allows applicants to apply for a certificate up to six (6) months after construction commences. Construction started in May with an estimated cost of $260,865. The applicant has met local and state requirements for the issuance of the NEZ certificate. FINANCIAL IMPACT: Taxation will be 50% of the State average of new homes for the next 12 years. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the NEZ certificate. COMMITTEE RECOMMENDATION: None 8/17/2017 Resolution No. ________ MUSKEGON CITY COMMISSION RESOLUTION TO APPROVE THE ISSUANCE OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City Clerk by Kevin and Kim Durnell to construct a new home at 321 Terrace Point Circle in the Terrace Point Condominium neighborhood, and; WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood Enterprise Zone Certificate; WHEREAS, the local unit of government is allowing the six (6) month grace period after construction commencement to apply, which is allowed under the law; WHEREAS, the Neighborhood Enterprise Zone Certificate will be in effect for twelve (12) years; NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone Certificate for the new construction of a home by Kevin and Kim Durnell be approved. Adopted this 22nd day of August, 2017. Ayes: Nays: Absent: By: __________________________ Stephen J. Gawron, Mayor Attest: _________________________ Ann Meisch City Clerk 8/17/17 CERTIFICATION 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 August 22, 2017. By: ________________________ Ann Meisch City Clerk 8/17/17 Commission Meeting Date: August 22, 2017 Date: August 17, 2017 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Public Hearing - Request for the establishment of an Industrial Development District at 700 Terrace Point Dr SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, KLO Outdoor has requested the establishment of an Industrial Development District at 700 Terrace Point Dr. The company is in the process of moving its corporate offices to this location and plan on making significant upgrades to the real property. The establishment of the district will allow the company to become eligible for Industrial Facilities Tax Abatements (IFTs). FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the establishment of the Industrial Development District. COMMITTEE RECOMMENDATION: None 8/17/2017 Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION APPROVING AN INDUSTRIAL DEVELOPMENT DISTRICT AT 700 TERRACE DR, MUSKEGON, MI 49440 WHEREAS, pursuant to PA 198 of 1974, as amended, the City Commission of the City of Muskegon has the authority to establish an Industrial Development Districts within the City of Muskegon; and WHEREAS, KL Outdoor has petitioned the City Commission of the City of Muskegon to establish an Industrial Development District on its property located in the City of Muskegon hereinafter described; and WHEREAS, construction, acquisition, alteration, or installation of a proposed facility has not commenced at the time of filing the request to establish this district; and WHEREAS, written notice has been given by mail to all owners of real property located within the district, and to the public by newspaper advertisement in the Muskegon Chronicle and public posting of the hearing on the establishment of the proposed district; and WHEREAS, on August 22, 2017 a public hearing was held at which all owners of real property within the proposed Industrial Development District and all residents and taxpayers of the City of Muskegon were afforded an opportunity to be heard thereon; and WHEREAS, the City Commission of the City of Muskegon deems it to be in the public interest of the City of Muskegon to establish the Industrial Development District as proposed. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Muskegon that the following described parcel of land situated in the City of Muskegon, Muskegon County, and State of Michigan, to wit: 8/17/17 is established as an Industrial Development District pursuant to the provisions of PA 198 of 1974, as amended, to be known as Irwin Industrial Development District. Adopted this 22nd Day of August 2017. Ayes: Nays: Absent: BY: __________________________________ Stephen J. Gawron Mayor ATTEST: __________________________________ Ann Meisch Clerk 8/17/17 CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, at a regular meeting held on August 22, 2017. ______________________________ Ann Meisch Clerk 8/17/17 Commission Meeting Date: August 22, 2017 Date: August 17, 2017 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Approval of a Neighborhood Enterprise Zone Certificate - 321 Terrace Point Circle SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from Kevin and Kim Durnell for the new construction of a home at 321 Terrace Point Circle. This unit is already under construction and the State Tax Commission allows applicants to apply for a certificate up to six (6) months after construction commences. Construction started in May with an estimated cost of $260,865. The applicant has met local and state requirements for the issuance of the NEZ certificate. FINANCIAL IMPACT: Taxation will be 50% of the State average of new homes for the next 12 years. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the NEZ certificate. COMMITTEE RECOMMENDATION: None 8/17/2017 Resolution No. ________ MUSKEGON CITY COMMISSION RESOLUTION TO APPROVE THE ISSUANCE OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City Clerk by Kevin and Kim Durnell to construct a new home at 321 Terrace Point Circle in the Terrace Point Condominium neighborhood, and; WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood Enterprise Zone Certificate; WHEREAS, the local unit of government is allowing the six (6) month grace period after construction commencement to apply, which is allowed under the law; WHEREAS, the Neighborhood Enterprise Zone Certificate will be in effect for twelve (12) years; NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone Certificate for the new construction of a home by Kevin and Kim Durnell be approved. Adopted this 22nd day of August, 2017. Ayes: Nays: Absent: By: __________________________ Stephen J. Gawron, Mayor Attest: _________________________ Ann Meisch City Clerk 8/17/17 CERTIFICATION 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 August 22, 2017. By: ________________________ Ann Meisch City Clerk 8/17/17 COMMISSION MEETING DATE: August 22, 2017 TO: Honorable Mayor and Commissioners FROM: Jeffrey Lewis, Director of Public Safety RE: Concurrence with the Housing Board of Appeals Notice and Order to Demolish. Dangerous Building Case #: EN1713223 SUMMARY OF REQUEST: This is to request that the City Commission Concur with the findings of the Housing Board of Appeals that the structure located at 1047 Wood St is unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days. It is further requested that administration be directed to obtain bids for the demolition of the structure and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder or staff may issue infraction tickets to the owner, agent or responsible party if they do not demolish the structure. Location and ownership: This structure is located on Wood Street between Iona Ave and Ada Ave in the McLaughlin Neighborhood. The structure is owned by Ingersoll Financial Midwest Trust, 1101 Lake Sestiny Rd ste 450, Maitland, FL 32751. Staff Correspondence: The “notice & order to repair” was sent on 7/5/2017. A “10 day notice” was sent on 7/24/2017 for the August 3, 2017 HBA hearing. ON August 3, 2017 the HBA declared the structure substandard and dangerous. Financial Impact: General Funds Budget action required: None State Equalized value: $15,200 Estimated cost to repair: $21,500 Staff Recommendation: To concur with the Housing Board of Appeals decision to demolish all structures on the property Owner Contact: We received no contact or correspondence from the owner Permits obtained: None DANGEROUS BUILDING INSPECTION Enforcement # EN1713223 Property Address: 1047 WOOD ST Parcel # 24-205-248-0001-30 Date completed: July 5, 2017 DEFICENCIES: 1. Siding is rotted, missing and has peeling paint in numerous locations 2. Windows are broken or missing 3. Windows have rotted sills, sashes and peeling paint 4. Storm windows are broken or missing 5. Window trim is rotted or missing 6. Soffits and fascia have rotted sections and peeling paint 7. Rear entry door is damaged and is currently boarded shut 8. Entry ramp to rear door has rotted or missing boards. Railing not secure and not to code 9. Exterior laundry vent is damaged 10. Areas of the foundation has cracks and openings 11. Gas & electrical meters are currently attached to building 12. No water usage since 2014, registered vacant in May of 2015 13. Fifteen (15) “enforcement” actions for trash, long grass and brush since 2014 Note: This reflects an “Exterior Only” inspection Based upon my recent inspection of the above property I determined that the structure meets the definition of a Dangerous Building and/or Substandard Building as set forth in Section 10-61 of the Muskegon City Code. If you disagree with the decision of the City Commission, you have the right to file a petition for superintending control in the Circuit Court for the County of Muskegon within 21 days after the City Commission concurs. PHOTOS of 1047 Wood St COMMISSION MEETING DATE: August 22, 2017 TO: Honorable Mayor and Commissioners FROM: Jeffrey Lewis, Director of Public Safety RE: Concurrence with the Housing Board of Appeals Notice and Order to Demolish. Dangerous Building Case #: EN1713226 SUMMARY OF REQUEST: This is to request that the City Commission Concur with the findings of the Housing Board of Appeals that the structure located at 1826 Ray St is unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days. It is further requested that administration be directed to obtain bids for the demolition of the structure and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder or staff may issue infraction tickets to the owner, agent or responsible party if they do not demolish the structure. Location and ownership: This structure is located on Ray Street between Laketon Ave and Holbrook Ave in the Marsh Field Neighborhood. The structure is owned by Ruth A. Kimbrough, 10301 N. Bingham Ave, Bitely, MI 49309. Staff Correspondence: The “notice & order to repair” was sent on 7/5/2017. A “10 day notice” was sent on 7/24/2017 for the August 3, 2017 HBA hearing. ON August 3, 2017 the HBA declared the structure substandard and dangerous. Financial Impact: General Funds Budget action required: None State Equalized value: $17,400 Estimated cost to repair: $21,000 Staff Recommendation: To concur with the Housing Board of Appeals decision to demolish all structures on the property Owner Contact: We have received no contact or correspondence from the owner Permits obtained: None DANGEROUS BUILDING INSPECTION Enforcement # EN1713226 Property Address: 1826 RAY ST Parcel # 24-880-000-0004-00 Date completed: July 5, 2017 DEFICENCIES: 1. Siding (aluminum) appears to be stripped from the home. The current siding has peeling paint, is missing or not attached 2. Windows are broken or missing 3. Windows have rotted sills, sashes and peeling paint 4. Basement windows are cracked or missing 5. Exterior dryer venting is missing 6. Front entry door is rotted or has delaminated 7. A large amount of broken glass near or on the front porch 8. Garage roof is deteriorated and must be replaced 9. Garage has boarded windows that are not painted to match the garage 10. Gas & electrical meters are attached to the structure 11. No water usage since February 2016 12. Ten (10) “enforcement” actions for trash, long grass, and brush since 2015 Note: This reflects an “Exterior Only” inspection Based upon my recent inspection of the above property I determined that the structure meets the definition of a Dangerous Building and/or Substandard Building as set forth in Section 10-61 of the Muskegon City Code. If you disagree with the decision of the City Commission, you have the right to file a petition for superintending control in the Circuit Court for the County of Muskegon within 21 days after the City Commission concurs. PHOTOS of 1826 Ray Street Commission Meeting Date: August 22, 2017 Date: August 17, 2017 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Approval to Purchase Property from the Michigan Department of Transportation (MDOT) SUMMARY OF REQUEST: Staff is seeking approval to purchase a portion of lots one thru five and all of lots six and seven of Block 340 from MDOT. These lots are located between 8th and 9th St and Webster and Muskegon. If approved, these lots will be combined with the portion of the lots that the City already owns, which would allow for development opportunities. This area is zoned Form Based Code, Urban Residential Context Area, which allows for residential homes between one and six units. FINANCIAL IMPACT: The cost for all of the property is $7,700. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval to purchase the property. COMMITTEE RECOMMENDATION: None 8/17/2017 STATE OF MICHIGAN RICK SNYDER DEPARTMENT OF TRANSPORTATION KIRK T. STEUDLE GOVERNOR DIRECTOR LANSING July 24, 2017 Mr. Mike Franzak City of Muskegon 933 Terrace Street Muskegon, MI 49440 Excess Property Tract 1466, Control Section 61151, Parcel 2,3,4,5,6,7,8,9,39 parts A Muskegon County, Michigan Dear Mr. Franzak: Your request to purchase excess property from the Michigan Department of Transportation (MDOT) has been reviewed and can proceed through the application process. Enclosed is an Application to Purchase and Agreement of Sale. The fair market value of the property is $7,700 and a minimum 10% deposit is required with the application. Please submit the purchase price of $7,700 or $770 bid deposit payment along with the enclosed Application to Purchase and Agreement of Sale to me at the following address: Michigan Department of Transportation Development Services Division P.O. Box 30050 Lansing, Michigan 48909 Attn: Teresa R. Vanis Please contact me at (517) 373-4135 if you have any questions. Sincerely, Teresa R. Vanis Program and Property Management Unit Michigan Department of Transportation Enclosures MURRAY D. VAN WAGONER BUILDING • P.O. BOX 30050 • LANSING, MICHIGAN 48909 www.michigan.gov • (517) 373-2090 LH-LAN-0 (01/11) MDOT 2447 (02/17) Page 1 of 3 APPLICATION TO PURCHASE AND AGREEMENT OF SALE CASH SALE DISTRIBUTION: APPLICATION, FINANCE, REAL ESTATE MICHIGAN DEPARTMENT OF TRANSPORTATION AND STATE OF MICHIGAN POLICIES PROHIBIT DISCRIMINATION AGAINST PERSONS BECAUSE OF RACE, COLOR, NATIONAL ORIGIN, SEX, AGE, MARITAL OR FAMILIAL STATUS, OR DISABILITY IN THE SALE OR RENTAL OF PROPERTY. TRACT NO. SALE PRICE BID DEPOSIT BALANCE 1466 $ 7,700.00 CONTROL SECTION PARCEL JOB 61151 2,3,4,5,6,7,8,9,39 pts. A 61-47 The undersigned (Purchaser) offers and agrees to purchase the subject land now owned by the Michigan Department of Transportation (MDOT) and identified above, subject to all encumbrance, building and use restrictions, ordinances, and easements of record together with all improvements and appurtenances, if any, now in or on the premises and to pay the balance indicated above with the following conditions: 1. Sale may be subject to final approved by the State Transportation Commission and/or State Administrative Board. Failure of Purchaser to complete payment and close this transaction within 45 days after notification of State Transportation Commission and/or State Administrative Board approval will result in MDOT terminating the agreement and retaining the property. Purchaser will forfeit up to $7,500 as liquidated damages if this property was sold at public auction or $250 as liquidated damages if this property was sold by direct sale. 2. The bid deposit will be held by MDOT and under no circumstances will MDOT be liable for interest on the bid deposit. 3. This Application along with bid deposit must be submitted, and made payable to the State of Michigan – Michigan Department of Transportation. Payments may be in the form of Cash, Personal Check, Certified Check or Money Order. Payments should be delivered to MDOT. 4. A quitclaim deed conveying all interest of MDOT will be executed and delivered to the Purchaser upon receipt of payment in full. No title policy will be provided by MDOT and no closing costs will be paid by MDOT. 5. Purchaser will not assign, sell or transfer for collateral or for any other purpose, any of its rights or obligations under this agreement without prior written approval of MDOT. 6. The time periods set forth here may be extended at the sole discretion of MDOT. 7. The legal description for the subject land is attached. 8. Direct ingress and egress may be limited between the highway and the subject land as described in the legal description. 9. Title will be conveyed as follows: Single Man Joint Tenants Governmental Unit Married Man Tenants in Common Registered co-partnership Single Woman Michigan Corporation Assumed Name (dba) Married Woman Out-of-State Corporation Other __________________ Husband & Wife Limited Liability Company (LLC) LEGAL NAME ADDRESS CITY STATE ZIP PHONE EMAIL 10. MDOT reserves the right to invade air space above subject land, including structures, by noise, vibrations, fumes or dust arising from construction, maintenance, repair, removal or use of the adjacent highway or street. Purchaser agrees not to assert any claim arising out of the right reserved by MDOT. 11. MDOT reserves the right to allow any existing public utility facility to go on to the subject land for the purpose of maintenance of said facility, be it on, over, or under the ground. MDOT 2447 (02/17) Page 2 of 3 12. All water run-off and drainage from the abutting highway right-of-way will be allowed a free and uninterrupted flow over subject land. Purchaser will have no claim against MDOT for such water deposited on or flowing upon the land. Purchaser will not change the physical condition of subject land to impede the free flow of water run-off and drainage from the abutting highway right-of-way. ENVIRONMENTAL DISCLOSER: 13. MDOT has (choose one): No information, reports, or testing regarding environmental condition of subject property in reference to hazardous substances. Information and/or testing results on environmental conditions of subject property in reference to hazardous substances. MDOT recommends Purchaser review Part 201 Section 324.2012 of Public Act 451, 1994 for the Purchaser’s liability, and liability exceptions. 14. Purchaser may perform environmental testing in accordance with the procedures described in paragraph 15 of this Application. MDOT will not pay for any testing or any analysis performed by the Purchaser on the subject property. Testing is defined as any type of environmental assessment including, but not limited to, records review, site inspection, soil boring analysis, groundwater analysis or soil analysis. 15. If Purchaser desires to perform environmental testing, then Purchaser shall give MDOT written notification within 10 business days after the execution of this Application to perform environmental testing. Purchaser must obtain a Right-of-Entry from MDOT in accordance with the procedures and in the manner provided by MDOT for obtaining such Right-of-Entry. If Purchaser fails to provide proper notice of his or her intent to perform environmental testing within the time prescribed herein, Purchaser’s right to perform environmental testing shall be waived. In any event, Purchaser shall complete environmental testing within 90 calendar days from the date this Application has been executed by the Purchaser. If property notice of Purchaser’s intent to perform environmental testing has not been received by MDOT and/or environmental testing has not been completed within 90 days from the date of this Application, then, in the event Purchaser wishes to terminate this Agreement, Purchaser will forfeit up to $7,500 as liquidated damages if this property was sold at public auction or $250 as liquidated damages if this property was sold by direct sale and MDOT will be under no obligation to refund such deposit. Environmental Testing Performed with Property Notice If test results document the presence of hazardous substances which will require remediation under applicable federal or state laws, either MDOT or the Purchaser may terminate this agreement and will be released from any further requirements of this agreement. In this event, notwithstanding any other provisions of this agreement to the contrary, all of the Purchaser’s bid deposit will be returned by MDOT. MDOT will not be responsible for any interest on the bid deposit. Applicant agreement to make test results available at no cost to MDOT at the conclusion of 90 calendar days. Applicant agrees to be solely liable for any damages or injuries which may occur to any person, personalty or real property as a result of the testing or audit. Waiver of Environmental Testing If written notice of intent to perform environmental testing has not been received within 10 business days after execution of this Application to Purchase and Agreement of Sale, then said environmental testing will be considered as waived by applicant and the bid deposit will not be refunded. 16. Unless otherwise permitted by law, and only in strict compliance with all state and federal environmental laws, Purchaser will not cause, permit, or suffer any “Hazardous Substance” to be brought upon, treated, kept, stored, disposed of, discharged, released, produced, manufactured, generated, refined or used on, about or beneath the subject property or any portion of it until title to this land is transferred to Purchaser. 17. Purchaser agrees to indemnify and save harmless the State of Michigan, the Michigan State Transportation Commission, the Michigan Department of Transportation and all officers, agents and employees thereof from any and all claim for injuries to, or death of, any and all persons, for loss of or damage to property, environmental damage, degradation, response and cleanup costs, and attorney fees or other related costs, arising out of, under, or by reason of this Agreement, except claims resulting from the sole negligence or willful acts or omissions of said indemnitee, its agents or employees. MDOT 2447 (02/17) Page 3 of 3 19. Please check if applicable: 10-Year Reverter This deed conveying title is subject to a reversionary interest whereby the purchaser agrees that the premises will be used for public purposes and appurtenances for a continuous period of ten (10) years from the date the deed is delivered and accepted. If at any time within said ten (10) year period the purchaser and/or assigns and successors shall cease to so continuously use the premises, said premises shall automatically revert to the seller and/or its assigns and successors in fee simple absolute. If the premises during the aforementioned ten (10) year period is continually used by the purchaser and/or its assigns and successors for public purposes, then after the expiration of said ten (10) year period the purchaser and/or assigns and successors will hold the premises in fee simple absolute free of any possibility of reverter heretofore held by seller and/or its assigns and successors. Release of the ten (10) year reversionary interest must be approved by the Michigan Department of Transportation Director. Compensation for release is based on the difference between the original sale price and the current market value of the property (less the value of improvements made by the purchaser) prorated over the ten (10) reversionary term. The current market value will be determined by an appraisal. Purchaser is responsible for bearing the appraisal cost. Permanent Reverter The deed conveying title is subject to a reversionary interest whereby the purchaser agrees that the property will be used for transportation purposes. If at any time the property is not used for transportation purposes, property ownership will revert to the Michigan Department of Transportation. DNR Mineral Reservation Language The deed conveying title is subject to saving and excepting out and always reserving unto the said State of Michigan, all mineral, coal, oil and gas, lying and being on, within or under the said lands whereby conveyed, except sand, gravel, clay or other nonmetallic minerals with full and free liberty and power to the said State of Michigan, its duly authorized officers, representatives and assigns, and its or their lessees, agents and workmen, and all other persons by its or their authority or permission, whether already given or hereafter to be given at any time and from time to time, to enter upon said lands and take all usual, necessary, or convenient means for exploring, mining, working, piping, getting, laying up, storing, dressing, make merchantable, and taking away the said mineral, coal, oil and gas, except sand, gravel, clay or other nonmetallic minerals. Further, excepting and reserving to the State of Michigan, all aboriginal antiquities including mounds, earth-works, forts, burial and village sites, mines or other relics and also reserving the right to explore and excavate for the same, by and through its duly authorized agents and employees, pursuant to the provisions of Part 761, Aboriginal Records and Antiquities, of the Natural Resource and Environmental Protection Act, Act 451 of the Public Acts of 1994, as amended Special Provisions SIGNATURE DATE AGENT FOR CORPORATION ADDRESS PHONE CITY STATE ZIP CLEAR FORM C.S. 61151 J.N. 61-47 Parcel 2,3,4,6,7,8,9, all of 5 and 39 Tract #1466 Legal Description That part of Lots 1 thru 5, Block 340, Revised Map of the City of Muskegon (1903), Muskegon County, Michigan, which lies Northwesterly of a line described as: Commencing at the Northeasterly Corner of said Block 340, thence North 38°47’ West, 264 feet to the point of beginning; thence South 31°35’ West, 132 feet; thence South 34°11’ West 207.48 feet; thence North 51°02’ East, 500 feet to a point of ending. Also, all of Lots 6 and 7. The lands described above in fee contain 30,975 sq. ft., more less. BF 5/17 CONTROL 61151 SEC.30, T30 , R16W JOB NO. 61-47 CITY OF MUSKEGON PARCEL 2,3,4,6,7,8 MUSKEGON COUNTY and 9, all of 5 and 39 N Tract 1466 SCALE 1"=100' DRW'N BF 5/17 REV REVISED PLAT CITY OF MUSKEGON 1 E I E G V A H T R 2 H E T S S B T E R W E E 3 T 4 12 5 11 10 6 9 E V A N I N N 8 O T G H E K S S U T M R E 7 E T CONTAINS 30,975.5 SQ. FT< AGENDA ITEM NO. _______________ CITY COMMISSION MEETING _________________________ TO: Honorable Mayor and City Commissioners FROM: Frank Peterson, City Manager DATE: August 22, 2017 RE: Convention Center SUMMARY OF REQUEST: In partnership with Muskegon County and Parkland Properties, the City of Muskegon is exploring the concept of constructing a downtown convention center, which will combine a hotel self-assessment with accommodation taxes to raise the funds to finance a convention center connected to the LC Walker Arena and the Holiday Inn. The City would likely be asked to carry the debt associated with the improvements, which could be as much as $15 Million. The debt payments would be paid with accommodation tax dollars, and would not affect the City’s General Fund. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Authorize City Manager to sign the Letter of Intent to enter into a partnership for the purposes of constructing a convention center in Downtown Muskegon. COMMITTEE RECOMMENDATION: Affirmative Action (231)724-6703 FAX (231)722-1214 Assessor/ Equalization Co. (231)724-6386 FAX (231)724-1129 Cemetery/Forestry (231)724-6783 FAX (231)724-4188 City Manager (231)724-6724 FAX (231)722-1214 August 22, 2017 Clerk (231)724-6705 Mark Eisenbarth FAX (231)724-4178 Muskegon County Administrator Hall of Justice, 4th Floor Comm. & Neigh. Services 990 Terrace Street (231)724-6717 Muskegon, MI 49442 FAX (231)726-2501 Computer Info. Technology Mr. Eisenbarth: (231)724-4126 FAX (231)722-4301 The City of Muskegon supports the construction of a convention center adjacent to the Holiday Inn Muskegon Engineering Harbor, as well as a public-private partnership between the City of Muskegon, the County of Muskegon, and (231)724-6707 Parkland Properties. The new facility will bring a variety of events to the City of Muskegon that will generate FAX (231)727-6904 visity spending, jobs and economic growth throughout the City and County of Muskegon. Finance (231)724-6713 In exchange for a commitment from the City of Muskegon and Parkland Properties to construct the convention FAX (231)726-2325 center, the City of Muskegon will: Fire Department (231)724-6795 • Support passage of the PA59 assessment for the City of Muskegon hotels. FAX (231)724-6985 Human Resources • Implement a bonds for the construction of the convention center if needed. Co. (Civil Service) (231)724-6442 FAX (231)724-6840 • Support additional fundraising efforts: Grants, Naming Rights, Philanthropy. Income Tax (231)724-6770 FAX (231)724-6768 The construction of this convention center will provide long term benefits to the region, and the City of Muskegon intends to work with the County of Muskegon and Parkland Properties to successfully implement Mayor’s Office this project to completion. (231)724-6701 FAX (231)722-1214 Respectfully, Planning/Zoning (231)724-6702 FAX (231)724-6790 Police Department (231)724-6750 Frank Peterson FAX (231)722-5140 City Manager Public Works City of Muskegon (231)724-4100 933 Terrace St. FAX (231)722-4188 Muskegon, MI 49443-0536 SafeBuilt (Inspections) (231)724-6715 FAX (231)728-4371 Treasurer (231)724-6720 FAX (231)724-6768 Water Billing (231)724-6718 FAX (231)724-6768 Water Filtration (231)724-4106 FAX (231)755-5290 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536 http://www.shorelinecity.com
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