Legislative Policy Committee Packet 02-27-2023

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                                  Monday, February 27, 2023
                                          5:30 P.M.
                                          Room 204
                                    MUSKEGON CITY HALL
                                     933 TERRACE STREET
                                    MUSKEGON, MI 49440


       I.      Call to Order

       II.     Approval of Minutes for November 30, 2022

       III.    Old Business

       IV.     New Business

               1) Legislative Updates – Pete Wills
               2) Presentation on Responsible Contracting - Robert Joerg, Director of Advocacy
                  for Laborers International Union of North America, Michigan Chapter
               3) Short-Term Rental Regulations - Benjamin Reider, Parmenter Law Associate
               4) Updates on agenda items from the 11/30/2022 LPC meeting - Jonathan
                  Seyferth, City Manager

       V.      Adjourn

Short-Term Rental Regulation links:
Boyne City - http://www.cityofboynecity.com/short-term-rentals-294/ (ordinance was just adopted in
December 2022)
Charlevoix - https://www.cityofcharlevoix.org/427/Short-Term-Rentals
Douglas - https://douglasmi.gov/forms-permits/short-term-rental-ordinance-2019/
Ferndale - https://www.ferndalemi.gov/resources/short-term-rentals
Frankenmuth - https://cms6.revize.com/revize/frankenmuthmi/STR%20Permit%20(N_O).docx.pdf
Grand Haven - https://grandhaven.org/residents/rental-housing-program/
Holland - https://www.cityofholland.com/848/Rental-Certification-Licensing-Guide
Ludington - https://www.ludington.mi.us/DocumentCenter/View/1538/STR-Packet-Complete-2-4-22
Saugatuck - https://www.saugatuckcity.com/uploads/1/3/3/9/133977444/application-short-term-
St. Joseph - https://www.sjcity.com/building/page/residential-rental-programs-and-permits
Notice dated 2/16/2023

Cc: MLive/Chronicle
City Commissioners


To give comment on a live-streamed meeting the city will provide a call-in telephone
number to the public to be able to call and give comment. For a public meeting that is not
live-streamed, and which a citizen would like to watch and give comment, they must
contact the City Clerk’s Office with at least a two-business day notice. The participant will
then receive a zoom link which will allow them to watch live and give comment. Contact
information is below. For more details, please visit: www.shorelinecity.com

The City of Muskegon will provide necessary reasonable auxiliary aids and services, such
as signers for the hearing impaired and audio tapes of printed materials being considered
at the meeting, to individuals with disabilities who want to attend the meeting with twenty-
four (24) hours’ notice to the City of Muskegon. Individuals with disabilities requiring
auxiliary aids or services should contact the City of Muskegon by writing or by calling the

                                   Ann Marie Meisch, MMC
                                   City Clerk
                                   933 Terrace Street
                                   Muskegon, MI 49440
Review of City Policy/Ordinance Regulating the Keeping of Chickens in Residential Areas
- Mayor Johnson
Commission had a long discussion regarding chickens and the number that may be allowed.
Currently a household may have one chicken. Commissioners were mixed on their feelings on
this issue. The City Manager will gather more information and take to a future Legislative

Review of the City Dangerous Dog Policy - Commissioner St. Clair
Currently the ordinance indicates pit bulls are the only dog listed as a dangerous dog.
Commissioner St. Clair suggested the breed be removed in the ordinance.

Commissioners agreed the ordinance should be amended and breeds not be listed.


Commissioner Ramsey explained a new process to approve board members at the annual CRC
meeting in January. Commission was agreeable.

He suggested we create the Parks and Recreation board but not fill positions at this time until a
Parks and Recreational Supervisor is hired.


Public participation was accepted.

Motion by Commissioner Ramsey, seconded by Commissioner St. Clair to adjourn the
meeting at

                                                                   MOTION CARRIED.

                                                          Ann Marie Meisch, MMC
                                                                City Clerk
                                   CITY OF MUSKEGON
                             LEGISLATIVE POLICY COMMITTEE
                               Wednesday, November 30, 2022
                                         5:30 pm

Present: Commissioners Johnson, Ramsey, German, Gorman, Emory, and St. Clair.
Absent: Commissioner Hood.

Approval of Minutes
Motion by Commissioner Ramsey, seconded by Commissioner Emory to approve the
minutes as amended

                                                                   ROLL CALL VOTE:

Ayes: Johnson, Ramsey, German, Gorman, Emory, and St. Clair.
Nays: None.

                                                                   MOTION CARRIED.


Legislative Update - Pete Wills
Pete Wills reviewed several State policy issues. Mr. Wills will be applying for funding between
$250,000 to $400,000 for a splash pad to replace the broken splash pad in front of the post

Climate Emergency Declaration with Presentation by Montaue City Manager Jeff Auch -
Mayor Johnson
Mr. Auch presented a powerpoint and provided a document of their Climate Mobilization Action
Plan. The powerpoint provided a detailed step by step process the City of Montague went
through. Some of the process includes fleet conversion, alternative transportation, community
energy efficiency, waste management, etc.

It took approximately one year for the City of Montague to develop the Climate Emergency

Some challenges have been staff availability to work on the project.

City, staff, Climate Action, and Council were the key components to the program.

By consensus of the Commission, it was agreed the City is interested in pursuing a Climate
Emergency Declaration.
                                             State / Federal Report, February 2023

    State Policy Issues (few bills have been introduced as of Jan 2023)
 Bill #    Sponsor    Detail                                                                                             Status   Position
HB 4001     Witwer    Tax Relief package                                                                                 Senate   NA
HB 4002    Shannon    EITC change                                                                                        Senate   NA
HB 4003    Hoskins    Elliott-Larsen Civil Rights Act; include sexual orientation & gender identity or expression as a   House    NA
                      protected category.
HB 4004     Weiss     Prevailing Wage                                                                                    House    NA
HB 4005     Weiss     Right to Work reinstatement                                                                        House    NA
 SB 7      Anthony    FY23 budget supplemental                                                                           Signed   MML support

2023 State / Federal Elected Officials

U.S. House (new 3rd Congressional District map)
    • Includes nearly two-thirds of Kent County; half of Ottawa; along with a third of Muskegon Co, including
       the City of Muskegon.
    • Rep. Hillary Scholten, former DOJ attorney and Grand Rapids native
    • Committees: Transportation and Infrastructure Committee and the House Committee on Small Business.
            o The Congresswoman serves on the Transportation and Infrastructure subcommittees on Aviation,
                Water Resources and Environment, and Coast Guard and Maritime Transportation (vice-ranking
                member). Additionally, she serves on the Small Business subcommittees on Contracting and
                Infrastructure (ranking member), and Rural Development, Energy, and Supply Chains.

Michigan Senate (new 32nd Senate District map)
   • Include nearly all of Muskegon County, except townships in the SE portion of the county; Oceana County,
       Mason County, portion of Manistee County, and Benzie County
   • Sen. Jon Bumstead
   • Committees: Appropriations, Transportation and Infrastructure, Agriculture and Natural Resources, Joint
       Capital Outlay, LEO/MEDC, EGLE, Transportation

Michigan House – (new 87th state House District map)
   • Includes Muskegon and Muskegon Heights, N. Muskegon, and rural areas north of North Muskegon along
       the shore and east along M-120 to Twin Lake.
   • Rep. Will Snyder
   • Committees: Appropriations; Appropriations subcommittees on Corrections, Health and Human Services,
       and Labor and Economic Opportunity (chair); LEO includes various departments including MEDC, MSHDA,
       Land Bank, Workers’ Disability Comp Agency, Workforce Dev); Regulatory Reform (chair)

   • Meeting with State Rep. Will Snyder; Mayor, Commissioner Gorman, Managers and senior leadership staff
       team attended.
   • Discussed Governor’s State of the State address , FY24 State Budget, recently enacted Public Act 1 of
       2023, details below, which provided funding for affordable housing, Community Revitalization and
       Placemaking Grants, missing middle housing development, and other areas.
   • Staff also shared a list of development projects for which we are seeking investments from the state.

   • Meeting with Peter Dickow, U.S. Senator Gary Peters’ W. Michigan Region Director; Manager and Peter
       Wills attended.
   • Sen. Peters’ committees - Chairman of the Homeland Security and Governmental Affairs Committee,
       member of the Senate Armed Services Committee, and Senate Commerce, Science, and Transportation
   • Discussed funding opportunities through the third year of the Congressional Directing Spending process.
       Also discussed the Senator’s congressional committees; coastal erosion; Great Lakes cruise ships; and
       emergency preparedness.

   • Upcoming meeting with new Congresswoman Hillary Scholten.
   • Expected topics include many similar with regard to past meetings with Rep. Snyder and Sen. Peters’ staff.

Michigan Municipal League (MML) - Land Use and Economic Development Committee

Peter Wills has recently volunteered to serve as a member of MML’s Land Use and Economic Development
Committee. MML recruits members to participate on policy committees, such as this and others, to help establish
state policy as well as review legislation which impacts member-communities across the state. Topics of this
committee include - Workforce/Attainable Housing, Community Development, Placemaking, Historic Tax Credits,
Entrepreneurship, Strategic Local Investment, Zoning and Enabling Act, Home Rule, and Local Decision Making.

January 25 State of State Address

Governor Gretchen Whitmer delivered her third State of the State Address. Mayor Johnson attended and was the
guest of Rep. Will Snyder.

The State of the State address is an opportunity to talk about the issues that make a difference in people’s lives
and focus on what the Governor intends to get done in the year. The Governor laid out her proposals to lower
costs, make Michigan more competitive, expand opportunity, and protect people’s fundamental rights.

Specific topics the Governor included -

    •   Universal preschool - expand the state’s Great Start Readiness Program so all 4-year-olds can go to
        preschool without charge by the end of her four-year term. About 58,000 of 110,000 4-year-olds currently
        are eligible.

    •   Economic development – establish a sustainable funding source for the state’s economic development
        efforts, through the creation of the new Strategic Outreach and Attraction Reserve Fund, or SOAR,
        following Ford Motor Co.’s announcement of new factories in Tennessee and Kentucky. The account has
        been used to land large projects, including EV plants in Lansing, near Big Rapids and in Wayne County's
        Van Buren Township.

    •   Taxes – Governor wants to roll back the “retirement tax,” restoring exemptions on pension income that
        were eliminated or reduced by Gov. Snyder as part of a tax overhaul nearly a dozen years ago. It would
        save 500,000 households $1,000 a year.

    •   Expand Earned Income Tax Credit - it is a refundable credit for which more than 700,000 lower-income
        workers are eligible. An expansion, which is supported by business organizations, would put up to $600
        more into their pockets if the credit is set at 30% of the federal credit. It currently is 6 percent.

    •   Workforce development – Governor wants to ensure that funding continues for a new program that
        provides college scholarships to HS graduates. It makes college tuition-free for 65 percent of graduating
        seniors. She also advocates to lower the age for people without a college degree to qualify for a tuition-
        free associate’s degree or skills certificate from 25 to 21. The Michigan Reconnect program was launched
        in 2021 and is supported by the business community. It pays the remaining balance of tuition and
        mandatory fees after other state and federal financial aid have been applied.

State Grants
MI Spark Grant – (DNR)

    •   As of February 9th, the DNR approved the City’s MI Spark Grant application of $250,000 for the
        reconstruction of the downtown Splash Pad.
    •   The city was one of 21 communities to share $14.2M of first round funding for outdoor recreation
    •   The DNR considered 462 applications requesting more than $280M in funding.

High Water Grant – (EGLE)

    •   The state appropriated $14.25M for a grant program to provide infrastructure and planning grants that
        directly address the impacts and vulnerabilities presented by severe weather events, with a focus on
        projects that address flooding, coastline erosion, urban heat, and storm water management.

    •   The city identified restoration of the beach access at Kruse Park as a target for this program. Staff has
        previously conducted community engagement on this project and developed a master plan for the site
        that is available on our website here - https://www.muskegon-mi.gov/cresources/Kruse-Park-Master-

    •   Last Fall, staff applied to pursue funds to support the work identified in Phase 1 of the Master Plan. If
        successful, as drafted the grant will provide $700,000.00 towards the project and will require a
        commitment of matching cash/in-kind funds from the City in the amount of $343,915.00 during the 23/24
        fiscal year.

    •   EGLE is expected to announce awards this Spring; two+ years after initial approval of the grant program.

MI Natural Resources Trust Fund – (DNR)

    •   In December 2022, the MI Natural Resources Trust Fund board recommended $23.3M to boost outdoor
    •   The board recommended approval of the city’s application of $300,000 for the Pere Marquette Park
        Restroom Concession Building.
    •   The project would include the construction of a second restroom / concession facility at Pere Marquette
        Park. The City is working to further enhance the recreational experiences within the park to better serve
        the public. The planned project would also replace the existing kite shack building with a slightly larger
        facility which could still host the concessionaire (MacKites) but also include the four (4) family style
    •   The project estimate is $667,500.00 of which the City is requesting the maximum grant amount
        ($300,000) with a $367,500 local match.
    •   The Trust Fund board's recommendations will go to the Legislature for review as part of the
        appropriations process. Upon approval, the Legislature forwards a bill to the governor for her signature
        later this year.

FY24 State Budget

The Governor’s budget recommendation totals $79 billion, and it includes a general fund total of $14.8 billion.

The budget proposes a 10% increase ($28M) in revenue sharing for cities, villages, and townships. It also creates a
new public safety revenue sharing fund which will provide $19.6 million dedicated specifically for public safety,
including employee recruitment, retention, training, and equipment for first responders. Significant investments
are also being proposed for infrastructure, housing, and community development. Highlights include:

Investing in Communities

•   $1.1B in estimated Constitutional Revenue Sharing payments made only to cities, villages, and townships
    (CVTs). This represents a $61.9 million increase over the original FY2023 enacted appropriation.

•   10% increase in statutory revenue sharing for cities, villages and townships (5% ongoing and 5% one-time).
    This results in a $28 million increase, for a total allocation of $307.5 million.

        o   $36.6M million in new statutory revenue sharing (2% ongoing and 5% one-time) dedicated specifically
            for public safety, including employee recruitment, retention, training, and equipment for first
                 $19.6 million for cities, villages, and townships
                 $17 million for counties
        o   $18.2M to provide in-service training to licensed law enforcement officers.
        o   $10.8M to establish the Office of Community Violence Intervention Services to partner with
            community-based organizations already working to reduce violent incidents.
        o   $1.9M to implement gun violence prevention policies.


   Roads, Bridges, Transit, Electrification
       o $200M supporting the Bridge Bundling program to replace or rehabilitate structurally deficient
            bridges across the state.
       o $65M to expand EV charging infrastructure networks and access.
       o $45M for the Michigan Clean Fleet Initiative to support local governments and businesses
            transitioning their vehicle fleet to electric vehicles and clean fuels.


   $226M to remove and replace 40,000 lead service lines across the state over 10 years.
   $122.5M to ensure the quality and safety of Michigan drinking water.
   $100M to establish an environmental justice contaminated site clean-up fund to remediate and redevelop
    contaminated sites in historically disadvantaged and underrepresented communities.

Energy and Environment

   $40M for creating renewable ready communities to provide grants to local communities for the creation of
    renewable energy facilities at a regional scale.

Housing and Community Development

   $212M for residential energy efficiency improvements through federal funds via point-of-sale rebates for
    home appliances, water heaters and more.
   $50M for the Housing and Community Development Program to alleviate affordable housing needs across the
    state and revitalization downtown areas in Michigan.
   $200M for Regional Empowerment Grants to support the growth, development, and diversification of the
    state’s regional and local economies.
   $100M for the Community Downtown Economic Development Program to provide competitive grants for
    community development and placemaking efforts in downtowns.
   $50M for Revitalization and Placemaking Program grants used to rehabilitate vacant, underutilized, blighted
    and historic structures and develop place-based infrastructure to revitalize communities.
   $135M for the Michigan Main Street initiative to start, grow, and expand small and micro businesses.

Legislative Tax Package

As of February 16, 2023, legislative leaders are poised to send a broad tax relief proposal for the Governor’s
signature of approval. Details include:

1) Increasing the Earned Income Tax Credit from 6% to 30%
2) Repeal taxes on public and private pensions
3) Issue about $800M in $180 checks to each tax filer. Married couples who file their taxes jointly would get
   $180 combined, $90 for each person. Under the proposal, the pension tax repeal would be rolled out
   immediately for police and fire, but be phased in over four years for other retirees.
4) Divert up to $600M from corporate income tax revenue every year for the next three years if corporate
   income tax revenue exceeds $1.2B. The diversion would push $50M toward a housing and community
   development fund, $50M to a revitalization and placemaking fund and $500M toward the state’s business
   incentive program, the Strategic Outreach and Attraction Reserve fund.

Budget Supplemental Bill

Public Act 1 of 2023 was signed by the Governor January 31st providing significant resources to help local

Key Highlights within the bill include:

•   $150M to create an affordable housing tax credit gap financing program for the purpose of reducing the
    housing cost burden of residents and increasing the supply of and preserving existing affordable housing. The
    specifics of this program need to be completed within 45 days of the bill being signed.

•   $100M in additional Community Revitalization and Placemaking Grants program to invest in projects that
    enable population and tax revenue growth through the rehabilitation of vacant and blighted buildings and
    historic structures, rehabilitation and development of vacant properties, and development of permanent
    place-based infrastructure associated with social zones and traditional downtowns, outdoor dining, and place-
    based public spaces. This brings the total funding amount to $200 million.

•   $50 million in additional funding for the Missing Middle Housing Program within MSHDA to increase the
    housing supply by providing cost defrayment to developers investing in, constructing, or substantially
    rehabilitating properties that are targeted to missing middle households. They also changed the boilerplate to
    make the money more flexible and easier to distribute. This brings the total funding to $100 million.

•   $75M in additional funding for the blight elimination program be used for demolition, stabilization,
    environmental remediation, or rehabilitation. This brings the total funding to $150 million.

•   $25M for Transportation Economic Development Fund Category B funding. This will support unfunded
    projects for construction or preservation of streets in cities and villages with populations of 10,000 or less,
    including, but not limited to, reconstruction, replacement, rehabilitation, and capital preventive maintenance.

•   $25Mto create a Water Shutoff Prevention Fund.



    •    Michigan could begin to see campaign stops from would-be presidential candidates a lot earlier and more
         campaign spending as the spotlight on the battleground state intensifies ahead of the 2024 election. The
         Democratic National Committee voted recently to approve a reshuffled calendar for next year that moves
         Michigan into the window of early primary states, placing it fifth in the lineup of state primaries behind
         South Carolina, New Hampshire, Nevada and Georgia.

    •    The DNC's move followed a vote by the Legislature to change the date of Michigan's presidential primary
         to the fourth Tuesday in February. Democratic Gov. Gretchen Whitmer has signed the bill.

    •    The new calendar sets Michigan’s 2024 presidential primary for Feb. 27, coming two weeks after the last
         primary on Feb. 13 in Georgia. That sets up the potential for an intense, two-week political battle across
         the state the next time there’s a serious contest for the Democratic nomination.

    •    Michigan, as well as Muskegon, will be in the spotlight like never before in the early primary season.

    •    The hospitality and travel industries are expected to directly benefit as a result of this change.

    •    Issues that affect the state ― auto manufacturing and labor policy, the environment and the Great Lakes,
         drinking water systems and infrastructure, jobs and farming ― will be discussed and debated by more
         candidates as a result of what they learn through face-to-face engagement with Michigan voters.

1:325. Best Value Procurement.

        (1)   For all contracts for public improvements greater than $50,000 in value, the City Administrator
              shall adopt policies or procedures for determining which bidder provides the best value to the
              city. The City Administrator shall direct the creation of scoring rubrics for evaluating bids for
              public improvements in the following manner: [FJ7]

              (a)   Each responsive bidder shall have their bid evaluated qualitatively by the following criteria:

                    i.     Price.

                    ii.    Qualifications, experience and accountability.

                                    1.   Qualifications and experience of the bidder and of key persons,
                                         management, and supervisory personnel to be assigned by the bidder.

                                    2.   References from individuals or entities the bidder has worked for within
                                         the last 5 years including information regarding records of performance
                                         and job site cooperation.

                                    3.   Evidence of any quality control program used by the bidder and the
                                         results of any such program on the [FJ8] bidder's previous projects.

                                    4.   A statement from the bidder as to any major subcontractors it expects to
                                         engage including the name, work, and amount.

                    iii.   Workplace safety.

                                    1.   Provide a copy of bidder's safety program, and evidence of a safety-
                                         training program for employees addressing potential hazards of the
                                         proposed job site. Bidder must identify a designated qualified safety
                                         representative responsible for bidder’s safety program who serves as a
                                         contact for safety related matters.

                                    2.   Provide the bidder’s Experience Modification Rating ("EMR") for the last
                                         three consecutive years. Preference within this criterion will be given to
                                         an EMR of 1.0 or less based on a three-year average.

                                    3. Evidence that all craft labor that will be employed by the bidder for the
                                          project has, or will have prior to project commencement, completed at
                                          least an authorized 10-hour OSHA Construction Safety Course.

                                    4.   For the last three years provide a copy of any documented violations and
                                         the bidder's corrective actions as a result of inspections conducted by the
                                         Michigan Occupational Safety & Health Administration (MIOSHA), U.S.
                                         Department of Labor – Occupation Safety and Health Administration
                                         (OSHA), or any other applicable safety agency.[FJ9]

                    iv.    Workforce development.

                                    1.   The ratio of masters or journeypersons to apprentices proposed to be
                                         used on the construction project job site, if apprentices are to be used on
                                         the project. [FJ10]
                  2.     Documentation as to bidder's pay rates, health insurance, pension or
                         other retirement benefits, paid leave, or other fringe benefits to its

                  3.     Documentation that the bidder participates in a registered apprenticeship
                         program that is registered with the United States Department of Labor
                         Office of Apprenticeship or by a State Apprenticeship Agency recognized
                         by the USDOL Office of Apprenticeship.

                  4.     Bidders shall disclose the number of non-craft employees who will work
                         on the project on a 1099 basis, and bidders shall be awarded points based
                         on their relative reliance on 1099 work arrangements with more points
                         assigned to companies with fewer 1099 arrangements. Bidders will
                         acknowledge that the City may ask them to produce payroll records at
                         points during the project to verify compliance with this section.[FJ11]

      v.    Social equity and sustainability.

                  1.     A statement from the bidder as to what percentage of its workforce
                         resides in the City of Ann Arbor and in Washtenaw County, Michigan. The
                         city will consider in evaluating which bids best serve its interests, the
                         extent to which responsible and qualified bidders employ individuals in
                         either the city or the county. Which jurisdiction is prioritized for scoring
                         purposes will be indicated in the solicitation. [FJ12]

                  2.     Evidence of equal employment opportunity programs for minorities,
                         women, veterans, returning citizens, and small businesses.

                  3.     Evidence that the bidder is an equal opportunity employer and does not
                         discriminate on the basis of race, sex, pregnancy, age, religion, national
                         origin, marital status, sexual orientation, gender identity or expression,
                         height, weight, or disability.

                  4.     The bidder's proposed use of sustainable products, technologies, or
                         practices for the project, which reduce the impact on human health and
                         the environment, including raw materials acquisition, production,
                         manufacturing, packaging, distribution, reuse, operation, maintenance,
                         and waste management.

                  5.     The bidder's environmental record, including findings of violations and
                         penalties imposed by government agencies.

(b)   The following criteria may also be included at the city's discretion:

      i.    Work plan.

                  1.     The proposed work plan to complete the project including such
                         information as the schedule, staging, materials and equipment to be
                         used, methods and techniques for completing the work that will be
                         employed, plans to maintain operations at city facilities or access to city
                         infrastructure during construction if desired by the city, or other criteria
                         as determined by the city in the bid documents.
                  (c)   Each evaluation criteria (price, qualifications, experience and accountability, workplace
                        safety, workforce development, social equity and sustainability, and/or work plan) shall be
                        weighted equally in terms of numerically scoring a bid.

           (2) The City Administrator may exempt a contract for public improvements from best value scoring and
           instead award the contract to the lowest responsible bidder in instances when the contract will be
           partially or wholly funded by third parties such as another government entity, a non-profit, an
           individual, a philanthropy or other similar entity, when that entity requires their funding to be awarded
           on a lowest responsible bidder basis, and when proceeding on a best value basis may at the sole
           determination of the City Administrator jeopardize the receipt of third-party funding, cause costs to the
           City to increase by more than 10% of the total project cost, or jeopardize the participation of a funding
           partner in the project. [FJ13]

(Ord. No. 07-61, § 2, 1-22-08; Ord. No. 09-16, § 3, 5-18-09; Ord. No. 21-41 , § 1, 1-3-22)

      [1]Editor's note(s)—Ord. No. 07-61, § 1, adopted January 22, 2008, repealed former Ch. 14, §§ 1:311—1:322.

            Section 2 of said ordinance enacted provisions designated as a new Ch. 14, §§ 1:311—1:324, to read as
            herein set out. Former Ch. 14 pertained to similar subject matter. See also the Code Comparative

[FJ7]Clarifies that BVP only applies to contracts greater than   $50,000, and also uses the term “Public
Improvements” which is what is in the charter.

[FJ8]Quality control language instead of quality assurance language.

[FJ9]These are the safety amendments previously discussed.

[FJ10]Noting that what to do with this language is still unresolved. Staff recommends removing it, but any further
guidance on how we can accurately judge these ratios and score them would be welcome.
[FJ11]1099 language previously discussed.

[FJ12]Provides a process for indicating which jurisdiction will be prioritized, either City or County.

[FJ13]Exemption language in instances of partner bidding.
     Frequently asked questions about Responsible Contracting

What is responsible contracting?
  ● Responsible contracting is a method for awarding contracts based on the best value rather
     than the lowest bid. Under responsible contracting policies (RCPs), bidders submit
     information on various responsibility criteria.

What are the major benefits?
  ● A level playing field
         ○ Currently, unscrupulous contractors can underbid responsible contractors by
            reducing their quality of workmanship, quality of materials, or the level of wages
            and benefits. By holding all bidders to a higher standard, responsible contractors
            are more likely to submit bids, irresponsible contractors are more likely to be
            deterred from bidding, and City staff can compare apples to apples.
  ● Protects the City
         ○ Unscrupulous contractors may misclassify workers, not live up to safety and
            health standards, and deliver shoddy workmanship to keep costs to a minimum.
            By asking all bidders questions about these items, the City can reduce both the
            likelihood that such problems occur, and liability that could arise if these
            questions weren’t asked.
  ● Saves money over the long term
         ○ A municipality or school district may save money up-front by selecting the lowest
            bidder each time. However, unscrupulous contractors are likely to cut corners in
            order to meet their original low bid estimate, and the public entity will have to pay
            a responsible contractor to come in and fix the project. Over the long term, a
            community’s bottom line is best served by hiring a responsible contractor to do
            the job right the first time. Additionally, labor costs rarely exceed 20% of an
            overall bid, and are often significantly less than that.
  ● A holistic approach
         ○ Responsible contracting does not require the City to award contracts based on any
            single criteria. Rather, it allows the City to conduct a holistic evaluation of the

           bidder’s business practices to determine the best fit for the City’s budget and
  ● Transparency
        ○ All contractors will have access to the same criteria that their bids will be
           evaluated on, and so would the public. Instead of having the criteria for these
           decisions left up to unelected officials, individuals accountable to the public are
           setting the guidelines for the use of public money on public projects.

What are some potential concerns?
  ● Fewer bidders
        ○ The number of bids submitted for a job is determined more by the overall demand
           for construction work in the area than by changes to City policy. However,
           insofar as City policy impacts the level of bidders, raising the bar does not lower
           the number of contractors; rather, it changes the composition of those who apply:
           responsible contractors that currently don’t seek City work are more likely to
           submit bids, while less responsible contractors are less likely to apply.
  ● Minimum Threshold Level
        ○ It is important to have a reasonable threshold amount to ensure that the policy
           covers the vast majority of projects the City bids out, while at the same time not
           slowing down low dollar purchases for common items or small projects.
  ● Administrative burdens on City staff
        ○ It is not incumbent on City staff to independently verify every individual claim
           made by every bidder on every bid. Rather, these criteria should be viewed as a
           means by which City staff and the City Council can compare bids on a level
           playing field. And if the bid pool contains more wheat and less chaff for the
           reasons considered in the previous bullet point, that’s less work for administrative
           staff to separate the former from the latter.
  ● Administrative burdens on contractors
        ○ If a contractor can’t fill out a form and answer basic questions about their
           business, that should raise concerns about their ability to deliver high-quality, on-
           time, on-budget work for the City on a public project.

● No contractor/fewer contractors can meet these standards
      ○ On the contrary, these are standards that responsible contractors across Michigan
          meet or exceed.
● Small contractors, including those owned by women and people of color, are less
   able to meet these standards
      ○ Some fear that the administrative burden of responding to the information
          requests entailed by a responsible contractor policy will fall particularly heavily
          on small contractors. But, as already stated, this burden is not heavy -- contractors
          have to keep track of these things whether or not the City asks for them.
● Price weighting level
      ○ Price is a very important issues any time you build a project, but just because it is
          cheap does not mean the City is getting the best value. Quality of work, safety,
          community benefits, and other items are equally important to ensure that the City
          is getting the best bang for its buck.

                                  Responsible Contracting Policy
                                               Policy Brief
Purpose: To ensure a level playing field for all contractors that bid on government projects as well as to
guarantee the project is completed safely, on time, and of the highest quality.
Problem: In the construction industry, there are contractors that seek to skirt the rules and are willing to
perform services below what is expected of them by municipalities. Such contractors may underperform in
safety, for both workers and the general public, quality of construction, and timeliness of project
completion. Whether it be unexpected change orders or materials that need to be replaced far sooner than
the expected lifespan, issues such as these are real concerns for local units of government.
Policy Main Components:
   •   Administration/Application
           o The Purchasing Department shall oversee procedure development and ordinance
              enforcement to all construction contracts the municipality awards in excess of $25,000.
   •   Pre-Qualifying Screening
           o The municipality shall develop a questionnaire that it shall use to screen contractors to pre-
              qualify them for a construction bidding process.
           o Procedures of the questionnaire and the pre-qualifying criteria contractors must submit to be
              deemed a responsible bidder and to be able to bid on the job.
           o The criteria that would deem a contractor a non-responsible bidder and prohibit their bid
              from being considered.
   •   Bid Evaluation Criteria
           o The criteria that the municipality will use to determine the best bid from responsible
           o Contractors are not mandated to have any of these criteria, but if they have them, it will
              positively affect their chance of having the best bid.
   •   Subcontractor Compliance
           o To ensure that all subcontractors are held to the same pre-qualifying standards that the
              general contractors are being held to.
   •   Enforcement
           o The mechanism to deal with if a contractor violates this ordinance or lies/misleads
              municipality staff in their bid application.
Of Note: Municipalities in Michigan that have adopted Responsible Contracting Policies in the last two
years include Oakland County, Saginaw County, Washtenaw County, Wayne County, Ann Arbor, Jackson,
Saline, Monroe, Bay City, Canton TWP, Royal Oak, Warren, and Hazel Park. Numerous other cities and
counties are considering, and will likely enact, a Responsible Contracting Policy in the coming months.
“The responsible contractor policy is about ensuring fair wages and benefits for workers in Washtenaw
County. We are a community that values our partners in labor and the dignity of hard work – this policy is
a significant action to ensure that Washtenaw County employs responsible and ethical contractors and
subcontractors.” – Jason Morgan, former Chairman of the Washtenaw County Board of Commissioners.
                                ORDINANCE NO. 80-_________



       SECTION 1. That Chapter 2, Article IX, of the Code of Ordinances of the City of

Warren, Michigan,


Article IX- Responsible Contractors

Sec. 2-401.- Title

This article shall be known as and may be referred to as the "Responsible Contractor

Sec. 2-402.- Purpose

The City of Warren desires that work performed on publicly financed construction projects
in the amount of $50,000 or more should be performed by responsible and qualified
bidders who can successfully complete city projects in a safe, timely, reliable, high-quality,
and cost-effective manner. The City of Warren recognizes that it is beneficial to the public
to ensure that firms receiving large construction contract awards from the city should
provide adequate wages and benefits to their employees and engage in fair business and
employment practices. This ordinance is not intended to be burdensome to the bidding
process, but rather will provide additional information for consideration when bids are

Sec 2-403.- General Requirements

This article shall apply to bidders on city construction contracts of $50,000 or more. Only
responsible bidders shall qualify for a contract of more than $50,000 awarded for the
construction, alteration, demolition, or repair of any public building or public works project
in the City of Warren. The cost shall include the labor and material necessary, for the
construction, renovation, repair, or improvements to city-owned property, except repair in
bona fide emergency situations.

2-404.- Prequalification Process

A.     All contractors must be deemed a Responsible Contractor prior to submitting bids
on City of Warren construction projects of $50,000 or more. The Purchasing Division shall
create an application for prequalification for contractors who wish to bid on city projects of
$50,000 or more. The Purchasing Division shall be responsible for implementation of this
Article. Once approved, a company is prequalified to bid on applicable city projects for a
period of three (3) years.

B.      The application for prequalification must be signed under penalty of perjury. If any
contractor submits false information on the application, the city may terminate any
contract and pursue any other remedies under this Article. A contractor is obligated to
update its responses to the application during the term of the contract within 30 days after
any change to responses previous provided if such change would affect a contractor’s
fitness and ability to continue performing the contract. The city may consider failure of a
contractor to update the application with this information as a material breach of the

2-405. Prequalification Screening

The Purchasing Division shall develop an application for each contractor intending to bid
on a city construction project to submit with its bid to determine if it is a responsible
contractor based upon the responsible contractor criteria developed in this Article. The
application shall be made available to all contractors interested in bidding on city
construction projects and available at the purchasing division and on the city website.

2-406.- Responsible Contractor Criteria

The Responsibility Criteria to be considered by the city include:

A.     General information about the bidder’s company, its ownership structure, and its
history, including all former business names, and an explanation of any business name

B.      If the bidder has ever operated under another name or is controlled by another
company or business entity or in the past five years controlled or was controlled by
another company or business entity, whether as a parent company, subsidiary or in any
other business relation, it must attach a separate statement that explains in detail the
nature of any such relationship. Additional information may be required from such an
entity if the relationship in question could potentially impact contract performance.

C.     Information regarding state and local licenses and licenses held by the bidder and
the associated license numbers; a disclosure if there has been any license disciplinary
history regarding any of these licenses.

D.     A confirmation that all subcontractors, employees, independent contractors, and
other individuals working on the construction project will maintain current applicable
licenses required by law for all licensed occupations and professions.

E.     Verification that the bidder is in compliance with all applicable state and federal
laws and visa requirements regarding the hiring of non-citizens, and disclosure of any work

visas sought or obtained by the bidder, any of the bidder’s subcontractors, or any of the
bidder’s employees or independent contractors, in order to perform any portion of the

F.     Evidence of experience with construction techniques, trade standards, quality
workmanship, project scheduling, cost control, management of projects of comparable
size/complexity, and building codes by documenting the bidder’s ability and capacity to
perform the project. The bidder must identify those portions of the project it reasonably
believes will be subcontracted and the names of the subcontractors.

G.      A list of all litigation and arbitrations currently pending and within the past five (5)
years, including an explanation of each (parties, court/forum, legal claims, damages sought,
and resolution).

H.      Disclosure of any violations of state, federal or local laws or regulations, including
OSHA or MIOSHA violations, state or federal prevailing wage laws, wage and hour laws,
worker’s compensation or unemployment compensation laws, rules or regulations, issued
to or against the bidder within the past five years.

I.     Disclosure of any debarment by any federal, state, or local governmental unit
and/or findings of non-responsibility or non-compliance with respect to any public or
private construction project performed by the bidder.

J.     Proof of insurance, including certificates of insurance, confirming existence and
amount of coverage for liability, property damage, workers compensation, and any other
insurances required by the proposed contract documents.

K.     A statement regarding the bidder’s staffing capabilities and labor sources including
subcontractors and a verification from the bidder that construction workers will not be
misclassified as independent contractors in violation of state or federal law.

L.    Verification of an existing Fitness for Duty Program (drugs and alcohol) of each
employee working on the proposed jobsite.

M.     A warranty statement regarding labor, equipment, and materials.

N.     A statement affirming that the firm will comply with the Warren Code of Ordinances
Sec. 2-334.1 (“Labor harmony through prevailing wage and benefits for city projects”).

O.    A statement from the contractor or subcontractor acknowledging their obligation to
comply with this Ordinance in each contract and subcontract.

Sec. 2-407. Bid Evaluation Criteria

A.      Once the City prequalifies a responsible bidder, the City must consider the
contractor's bid. The City must consider, at minimum, each of the evaluation criteria listed
in this section in determining the best bid. The City may require contractors or
subcontractors to provide additional information by inclusion in bid documents.
Additionally, the list set forth below in no way limits any additional criteria that the City
may deem relevant for purposes of determining of the best bid.

B.      Bid documents must require any contractor or subcontractor bidding on the project
to submit written responses and other information and documentation regarding the listed
criteria and any other criteria specified by the City through the bid documents. The City
may request additional information or explanation from any contractor or subcontractor
regarding any particular criteria. The bid documents must provide that the City retains the
right in its discretion to reject any and all bids. All required contractor financial and
privileged information must be kept from public disclosure unless otherwise required by
C.      For each separate bid package, the City in its discretion will weigh the information
provided by the contractor or subcontractor regarding the evaluating criteria, as a whole,
to determine the best bid.

D.      Except as otherwise required by law, no single criterion will necessarily be
determinative in assessing which bid is the best bid. The Purchasing Division must weigh
each of the criteria based on a distribution of percentage points on a 100-point scale. The
criteria to be considered in bid evaluation on construction projects by the City shall be
weighed categorically as follows, and shall include:

       (1)    Price (30%)

       (2)    Corporate accountability (20%).

              (a)     Qualifications of management and supervisory personnel to be
       assigned by the bidder.
              (b)     References from individuals or entities the bidder has worked for
       within the last five years, including information regarding records of performance
       and job site cooperation
              (c)     Evidence of any quality assurance program used by the bidder and the
       results of any such program on the bidder's previous projects.
              (d)     Assurance that all construction work for this project must proceed
       economically, efficiently, continuously and without interruption.

       (3) Workplace safety (20%).

              (a)    Documentation of the bidder’s Experience Modification Rating
       ("EMR") for the last three consecutive years. Preference within this criterion will be
       given to an EMR of 1.0 or less based on a three year average.

        (b)     Evidence that all craft labor that will be employed by the bidder for
the project has, or will have prior to project commencement, completed at least an
authorized 10-hour OSHA Construction Safety Course.
        (c)     Bidders shall disclose the number of non-craft employees who will
work on the project on a 1099 basis, and bidders shall be awarded points based on
their relative reliance on 1099 work arrangements with more points assigned to
companies with fewer 1099 arrangements. Bidders will acknowledge that the City
may ask them to produce payroll records at points during the project to verify
compliance with this section.

(4) Workforce development (20%).

        (a)    Documentation as to pay rates of employees and whether the bidder
provides health insurance, pension or other retirement benefits, or other benefits to
its employees.
        (b)    Documentation if the bidder has participated in a Class A
apprenticeship program for each separate trade or classification in which it employs
craft employees and shall continue to participate in such programs for the duration
of the project including the start of the program. Class A apprenticeship program is
an apprenticeship program that is currently registered with and approved by the
U.S. Department of Labor or a state apprenticeship agency and has graduated
apprentices to journeyperson status for at least three of the past five years. A role
setting forth the trades and classifications of craft employees with their names and
addresses will be furnished in order to verify participation in a Class A
apprenticeship program.
        (c)    Documentation of master or journeyperson certification or status for
masters and journeypersons to be used on the project, and the source of such
certification or status

(5) Social equity (10%).

        (a) A statement from the bidder as to what percentage of its workforce can
be drawn significantly from area residents, because a goal of the City is to utilize, in
its construction activities, local residents as much as is economically feasible while
retaining the high quality of construction required for its construction activities,
consistent with applicable law. The City will consider in evaluating which bids best
serve its interests the extent to which responsible and qualified bidders are able to
achieve this goal.
        (b)     Evidence of equal employment opportunity programs for minorities,
women, veterans, returning citizens, and small businesses
        (c)     Assurance that the bidder is an equal opportunity employer and does
not discriminate on the basis of race, sex, pregnancy, age, religion, national origin,
marital status, sexual orientation, gender identity or expression, height, weight, or

2-408 Subcontractor compliance.

A.      A construction manager, general contractor or other lead or prime contractor must
not be permitted to use a subcontractor on any work performed for the City unless it has
identified the subcontractor on its subcontractor list and a confirmation that the
subcontractor has been prequalified as stated in the prequalifying section.

B.     A subcontractor listed on a firm's subcontractor list must not be substituted unless
written authorization is obtained from the Purchasing Division and the subcontractor has
been prequalified as stated in the prequalifying section.

C.      In the event that the Purchasing Division determines that a prospective
subcontractor listed by the apparent bid awardee does not meet the prequalifying
standards of this article, it may, after informing the prospective awardee, exercise one of
the following options:
        (1)     Permit the awardee to substitute a qualified, responsible, subcontractor in
accordance with the requirements of this article; or
        (2)     Require the awardee to self-perform the work in question if the firm has the
required experience, licenses, and other qualifications to perform the work in question; or
        (3)     Disqualify the prospective awardee.
D.      In the event that a subcontractor is disqualified under this article, the general
contractor, construction manager or other lead or prime contractor must not be permitted
to make any type of contractual claim against the Purchasing Division on the basis of a
subcontractor disqualification.
E.      Subcontractors completing work that is less than $50,000 of the overall bid price
are not required to be designated as a responsible contractor. The contractor shall still
notify the City of which subcontractor is being used and the percentage of the overall price
for the work performed by that subcontractor.

2-409 Substantially low bid review.

In the event the amount of a bid appears disproportionately low when compared with
estimates undertaken by or on behalf of the City and/or compared to other bids submitted,
the City reserves the right to inquire further of the bidder to determine whether the bid
contains mathematical errors, omissions, and/or erroneous assumptions, and whether the
bidder has the capability to perform and complete the contract for the bid amount.

2-410 Enforcement.

A.    Contracts must provide that violation of this article must constitute a material
breach thereof and entitle the City to terminate the contract and otherwise pursue legal
remedies that may be available.

B.     Compliance with the prequalifying screening criteria of this article must be required
in contract amendments if the initial contract was not subject to the provisions of this

article. Contract amendments must provide that violation of prequalifying screening
criteria must constitute a material breach thereof and entitle the City to terminate the
contract and otherwise pursue legal remedies that may be available.

C.     Information that is provided under the processes set forth in this article that is at
any point deemed false or in an attempt to mislead the City entitles the City to terminate
the contract and otherwise pursue legal remedies that may be available.

D.       Violations of this article may be reported to the Purchasing Division which must
investigate such complaints. Whether based upon such a complaint or otherwise, if the
Purchasing Division has determined that the contractor has violated any provision of this
article, the Purchasing Division must issue a written notice to the contractor that the
violation is to be corrected within 10 calendar days from receipt of notice. In the event the
contractor has not corrected the violation or taken reasonable steps to correct the violation
within 10 calendar days, then the Purchasing Division may:
         (1)    Request the awarding authority to declare a material breach of the contract
and exercise its contractual remedies thereunder, which are to include but not be limited to
termination of the contract.
         (2)    Request the awarding authority to declare the contractor to be
nonresponsible in accordance with the procedures set forth in prequalifying section of this

2-411 Public input.

The Purchasing Division shall develop a complaint form that will allow members of the
public to report suspected violations of this article to the Purchasing Division. Members of
the public may at any time submit a report of suspected violations of this article. The
complaint form must be accessible to the public on the City's website and a physical copy of
the form will be available at the Purchasing Division offices.

2-412 Severability.

The terms, conditions, and provisions of this article are hereby declared to be severable
and, should any portion, part or provision of this article be found by a court of competent
jurisdiction to be invalid, unenforceable, or unconstitutional, the City Council hereby
declares its intent that this article shall have been enacted without regard to the invalid,
unenforceable or unconstitutional portion, part, or provision of this article.


                CITY OF MUSKEGON
                                 Short Term Rental Property
                                 Neighborhood Boundary
                                 Property Lines

                                                                                            MUSKEGON LAKE

                       MUSKEGON CHANNEL

                                                 MUSKEGON LAKE/HARBOUR TOWNE MARINA

                                       LAKE MICHIGAN

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