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LEGISLATIVE POLICY COMMITTEE MEETING Wednesday, February 26, 2025 5:30 P.M. Conference Room 204 MUSKEGON CITY HALL 933 TERRACE STREET MUSKEGON, MI 49440 AGENDA I. Call to Order II. Approval of Minutes for December 2, 2024 III. Old Business IV. New Business 1) Update on Water Affordability Study by Prein & Newhof – Dan VanderHeide 2) 2025 Legislative Policy Meeting Calendar 3) Legislative/ARPA Updates – Pete Wills 4) $2.8 Million State Appropriation – Jonathan Seyferth 5) Commission Meeting Attendance – Vice Mayor St. Clair 6) Ownership of L-Dock – Jonathan Seyferth 7) Event Food Vendors on Western – Rachel Gorman V. Public Comment Adjourn CITY OF MUSKEGON LEGISLATIVE POLICY COMMITTEE Minutes Monday, December 2, 2024 5:30 pm Present: Commissioners Johnson, St.Clair, German, Kochin, Kilgo, and Gorman Absent: Commissioner Keener Approval of Minutes Commissioner Kochin moved, Vice Mayor St.Clair seconded, to approve the minutes of August 28, 2024. MOTION CARRIED OLD BUSINESS New Charter Park Designations City Manager, Jonathan Seyferth, explained that the Lakeside property west of Lincoln Avenue and north west of Seyferth Park be designated as a green-space park. This will be discussed further in the first quarter of 2025. Waterfront PUD Zoning Change City Manager, Jonathan Seyferth, and Director of Development Services, Jake Eckholm, explained the item. All Waterfront PUDs to have 50% access. This will be brought to Commission the first quarter of 2025. Pursuit of DNR Time-Sensitive Land Acquisition Grant City Manager, Jonathan Seyferth, and Public Works Director, Dan VanderHeide, explained the item. Hartshorn Village property does not work. Another property was discussed. Commission is in approval of pursuing the Time-Sensitive Land Acquisition Grant. NEW BUSINESS Legislative/ARPA Updates Director of Government Relations and Strategic Operations, Pete Wills, gave an update on Climate Action – this will be brought to Commission on April 22nd. He stated that we took possession of the EV vehicles on December 2nd. Discussion was held on Grants Management Services – contract was signed with Wade Trim, Inc. to partner in providing this service. Also discussed MEDC Rap 1.0 grant, and Lame Duck Legislative Session. The Bill to extend cap on Transformational Brownfield was discussed and Commission stated it was ok for City Manager, Jonathan Seyferth, to send letters of support. Update on Regional Transit Authority – LeighAnn Mikesell Deputy City Manager, LeighAnn Mikesell, gave an update. Muskegon Heights, Roosevelt Park, and the City of Muskegon have given their approval but Norton Shores has some concerns. They will be meeting in January. City Down Payment Assistance Program – Commissioner Kilgo Commissioner Kilgo explained that the goal is to discuss and identify new opportunities and approaches that would allow us to reach and support a greater number of residents who are aspiring to become homeowners. Muskegon County Mutual Aid Box Alarm System Deputy Director Jay Paulson explained that the Mutual Aid Box Alarm System (MABAS) is a statewide mutual aid agreement that covers liability and authority to receive and provide mutual aid to other Fire Departments that have signed the MABAS Agreement. The City of Muskegon Fire Department would like to enter into the interlocal agreement with the Muskegon County Mutual Aid Box Alarm System Division 3602. This will be on the December 10th Commission Meeting. ANY OTHER BUSINESS Discussion was held on reducing the price of the Beach Parking Passes. Mayor Ken Johnson suggested a BOGO for the month of December. Shuttle service was discussed. PUBLIC COMMENT Jake Eckholm mentioned that the Soul Filled ribbon cutting is December 3rd. Adjournment Motion by Vice Mayor St.Clair, seconded by Commissioner Kochin to adjourn the meeting at 7:55 pm. MOTION CARRIED ______________________________ Ann Marie Meisch, MMC City Clerk Agenda Item Review Form Legislative Policy Committee LPC Meeting Date: February 26, 2025 Title: Water Rates & Affordability Submitted By: Dan VanderHeide Department: DPW Brief Summary: Staff will present information on the state of the water fund, expected future water costs, and an update on the affordability study. Detailed Summary & Background: As discussed in the past and as highlighted in the Comprehensive Financial Review, the water fund remains in a deficit position. Staff will discuss progress that has been made toward solvency, the future of system rates and what the rate increase may be needed in July, and then will present preliminary findings and information about the water affordability study that could lessen the burden on customers below or near the federal poverty limit. Prein & Newhoff will be present for the water affordability portion. Goal/Focus Area/Action Item Addressed: Decreased infrastructure burden on residents Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review Agenda Item Review Form Muskegon City Commission – Legislative Policy Committee LPC Meeting Date: February 26, 2025 Title: 2025 Legislative Policy Meeting Dates Submitted By: Kimberly Young Department: City Manager’s Office Brief Summary: To set the meeting dates for the Legislative Policy Committee for 2025. For 2025 the meeting dates are: February 26, 2025 May 28, 2025 August 27, 2025 (move to August 20?) November 26, 2025 (move to November 19?) August 27 is the date being considered for an unrelated event involving the Mayor and Manager November 26 is the Wednesday before Thanksgiving. Detailed Summary & Background: Meetings to be held on the fourth Wednesday of the 2nd month of each quarter. Goal/Focus Area/Action Item Addressed: Amount Requested: n/a Budgeted Item: n/a Fund(s) or Account(s): n/a Budget Amendment Needed: n/a Recommended Motion: To set the Legislative Policy Meeting Dates as presented. Approvals: Guest(s) Invited / Presenting: State / Federal Report, February 2025 Bill # Detail Status Position HR 19 Immigration / restriction on state earmark funding – sets House Rules, not statute Adopted by House HB 4001 Tipped wage Senate Reg Affairs HB 4002 Reforms paid sick leave proposal Signed by Gov HB 4049- Allows rearing of hen chickens in residential areas. Provides generally accepted agricultural and House Committee 50 management practices for rearing egg-laying hens in residential areas under certain conditions. The on Agriculture legislation would appear to restrict our ordinance to only single-family properties, parcels of at least 1/4 in size, and hens not to exceed (5). HB 4081 Amends the Land Division Act to authorize counties/municipalities to increase number of parcels resulting House Regulatory from division Reform SB 8 Minimum Hourly Wage Signed by Gov SB 19-22 Tenant Empowerment Package for renters Senate Housing & Human Services 1 LOCAL ARPA Community Grants, as of 12/31/24 - 25 - total approved grants ($1.6M) - 11 - projects completed (Samaritas, Unity Beauty Salon, Tiki Boiz, Rake Beer Projects, Forrest Tax, Soul Filled Enterprises, Jackson Hill NA, McLaughlin NA, West Michigan Symphony, Kids Food Basket, Muskegon Retirement Apts dba Jefferson Towers) - 6 - have been paid the first installment payment, ie. 50% of the total award - 7 – have been paid the second installment payment, ie. 40% of the remaining balance - 1 – projects pending - As of 12/31/24 - $1,284,300 has been allocated Climate Action - Contract signed with Fresh Coast Climate Solutions, based in Ann Arbor, to prepare our Government Operations Climate Action Plan (CAP). The Commission approved the contract of $49,000. The period of work will be 10/28/24-1/31/25. The executed agreement can be located here. Fresh Coast Climate Solutions is expected to present a draft of the CAP at the April 22 commission meeting, also Earth Day. - EGLE-Community Energy Management Grant – City has received $75,000 to offset the development of the Climate Action Plan. These funds are currently being use to reimburse the expense of the CAP, above. - U.S. Dept of Energy, Energy Efficiency Community Block Grant (EECBG) – City was approved to receive a $76,500 block grant towards the acquisition of two EV side-by-side vehicles for use by the Parks Dept throughout the year. The Commission approved the acquisition in September. Parks has taken possession of the units and are currently in use with snow removal activities. Inquiries to USDOE for cost reimbursement are ongoing. Grants Management Services - Contract signed with Wade Trim, Inc, based on Grand Rapids, providing Grant Management Services. - Services include, but are not limited to, identifying eligible grant opportunities, drafting proposals, and managing the application process. - Wade Trim currently is providing grant evaluation (analysis), identification (identify resources), strategy (scoping and design), and pursuit (grant writing, marketing, advocacy). - The contracted period runs with the city’s fiscal year ending June 30, 2025. MEDC RAP 1.0 grant ($6M) - The MEDC recently approved an amendment to a portion of our ($6M) RAP 1.0 grant. Of the $1M portion of the grant, $410,000 was received to reimburse redevelopment work at the Arena in 2023. From the balance of funds remaining ($590,000), the MEDC has permitted the use of $167,500 to be directed towards the demolition and redevelopment of the 880 First St site. MEDC RAP 3.0 grant (2025 application) - Robert C. Lighton Memorial Park Improvements 2 - The city applied to the MEDC for the third round of their Revitalization & Placemaking (RAP) program. - Small, triangular park located at the convergence of Apple Avenue, Sanford, and Terrace Streets within the central business district. Originally called Gateway Park, it was created in 1974 using federal urban renewal funds as part of the Terrace Street widening project. In 1981, the park was renamed for former city Planning Director, Robert Lighton. The city is now seeking to reactivate this public space by attracting more people and stimulating needed economic activity. - In 2023, Terrace Street was returned to its original (and much narrower) configuration, replacing the former boulevard’s southbound lanes with a new linear greenspace as a continuation of Lighton Park; and Sanford Street was rebuilt to terminate at the park and narrowed to accommodate a future non-motorized trail connection. o The Laketon-Lakeshore Trail Connector (LLTC), a paved non-motorized pathway along Sanford and Terrace Streets. Utilizing a $1.9-million grant from MDOT’s Transportation Alternatives Program, the connector will provide a critical link, closing a major gap in the regional trail network between the Laketon Trail (city extension of the Musketawa Trail) and the Lakeshore Trail (extension of the Berry Junction/Hart-Montague Trail). The LLTC route will run along the west side of Lighton Park, becoming an integral part of the park’s identity and reviving its role as a gateway to downtown. o The reconstruction of Apple Avenue will reduce the number of vehicle lanes, and improve the safety for all using the corridor. New crosswalks and non-motorized trail crossings will provide safer pedestrian/bicyclist access between neighborhoods, small businesses, healthcare centers, government facilities, and Lighton Park. o Park improvements would include upgrading the existing paved plaza, seating embankment amenities and improved contouring of the small raised berms, additional tree plantings, lighting features, and public art. The upgraded paved plaza will serve a dual purpose as a place for the public to congregate as well as allow for the installation of a synthetic ice-skating sheet to be used for public skating during the winter months. In addition, a park entrance sign; fireplaces; concrete seat walls; bistro-style tables and chairs; and string lights attached to lamp posts will be installed. Walking paths will be improved and connect to the new Laketon-Lakeshore Trail Connector (LLTC) which bounds the park. STATE State of the State Address – 3/26/25 The Governor will deliver her seventh State of the State Address. Governor Whitmer is expected to outline her plans to continue building on the accomplishments of her first six years in office. Her proposals will focus on creating jobs, lowering costs, continuing record investments in education, and so much more. 3 FY26 Executive Budget Recommendations Revenue Sharing - Local governments will be seeing a 3.6% statutory revenue sharing increase under the proposal, moving from $624.66 million to $647.01 million. The constitutional revenue sharing piece is up $25.7 million more for a combined $1.1 billion. - Cities, villages and townships with crime problems can take advantage of a $75 million pot of money called the Public Safety and Violence Prevention Trust Fund. Transportation - A $211 million increase into the roads is being proposed – $112.2 million more from the General Fund to match federal highway money and $98.8 million for state and local roads. - A study and pilot program of a road user charge will cost $7.8 million with $171,900 going to a full- time employee in charge of a road usage charge. Labor and Economic Growth - $1.8 billion is being split among three buckets of programs administered by the Michigan Strategic Fund, Michigan State Housing Development Authority, and the State Land Bank Authority. Of that money, the state is on the hook for $239.5 million ongoing and $83.5 million one-time. - The Michigan Strategic Fund’s RAP program would end to free up $50 million. - The Employer Assisted Housing program within MSHDA gets $25 million to fund a range of affordable housing projects. EGLE - The $1.1 billion budget includes only $190 million from the General Fund for ongoing projects and $106 million in one-time funding. Cleaning up contaminated sites gets $80 million. - Grants and low-interest loans to help replace lead water lines, update storm drains, among other water infrastructure improvements gets $30 million. Overall, water infrastructure gets $50 million. - Putting the permitting process into publicly accessible database online costs $39 million. Another $7 million goes to creating a septic system database. - EGLE would also see $10 million to build electric vehicle charging stations. - Expanded resources for water affordability and energy assistance. Last term, a water affordability program was proposed through a $2 monthly retail charge on water utilities. The 4 state's health department would use the money to assist homes at or below 200 percent of the federal poverty level, funding discounts on their water bills, picking up unpaid water bills or paying for plumbing upgrades. However, legislators did pass a $10 million one-time General Fund investment into "water affordability efforts," which included funding for paying water arrearages, shut off notices and subsidies for community programs. Public Safety - $75 million for a Public Safety Trust Fund to address violent crime prevention Funding solutions for our transportation system. The Governor’s proposed budget - - $4.9 billion in total road funding, including federal, state and restricted funds. o $112.2M in GF dollars to ensure Michigan matches all $1.8 billion in federal highway aid o $98.9M million in new revenue to improve state and local roads, highways, and bridges across the state o $767M for transit and rail programs o $7.8M to fund a study and pilot program of potential road usage charge options o $10M to install electric vehicle charging stations across the state - This proposal only includes new revenue generated from an increase in collections from gas tax and registration fees based on an upcoming transportation funding proposal from the Governor. - Competing road funding plans by both House and Senate would include – use of existing revenue versus new revenue; neither Chamber disagrees on the amount needed ($3B); both Chambers agree that all fuel taxes should support roads; and that more should be sent to local units. A copy of the budget presentation can be found here. A detailed breakdown of the budget and briefing papers can be found here. Additional details on Governor’s road funding plan - Increase in the 6% corporate income tax (CIT). - Shift revenue from the 6% sales tax on gasoline to roads and replace the roughly $700 million that flows through the tax on fuel to schools by bumping up the CIT and directing the money to the education budget. - A 1.5% point increase in the CIT, moving it from 6% to 7.5%, would produce about $600 million in new revenue next year. - The CIT is paid by C corporations and entities taxed as corporations federally. - In 2019, her first year in the state's top office, the Governor proposed a 45-cent gas tax increase to boost road funding. However, the plan met immediate resistance and died in a Republican- controlled Legislature. - In 2020, the Governor issued $3.5B in bonds for road construction projects under a four-year program labeled "Rebuilding Michigan." The bonding program was limited to fixing state-owned roads like highways. 5 - But now, with that program coming to an end, the state is facing continued payments toward outstanding debt — $340 million this year — and questions about how to pay for additional improvements. Over the life of the latest round of bonds, Michigan will pay $2.5 billion in interest on top of the $3.5 billion borrowed. - A 2023 report from the Growing Michigan Together Council said the state was facing a transportation network funding deficit of about $3.9 billion annually. House GOP Speaker Matt Hall Road Funding Proposal - Would not raise new revenue, but use $3.1B. - Hall’s would dedicate $2.2B from the Corporate Income Tax (CIT) for roads. The breakdown from CIT includes: - $500 million from eliminating MEGA credits - $500 million preventing legislative earmarks - $600 million from the Consensus Revenue Estimating Conference’s higher-than-expected findings. - $500 million from the Strategic Outreach and Attraction Reserve (SOAR) fund - $50 million from the expiring Revitalization and Placemaking (RAP) Program - $50 million that would have been deposited into the expiring Housing and Community Development (HCDF) fund - The remaining $945 million would permanently dedicate all motor fuel taxes to road funding. He proposes eliminating the gas tax and replacing it with a motor fuel tax that would go entirely to roads, $700 million would be dedicated to roads so they don’t feel a funding shift. The Speaker is supportive of investing in water and sewer infrastructure, establishing a Public Safety Trust Fund, funding law enforcement and emergency services, cracking down on earmarks, lame-duck reform and the revolving door of legislators becoming lobbyists as priorities for House Republicans this term. Michigan House GOP targeting cities that provide 'sanctuary' to illegal immigrants House Resolution 19 On February 11, the House passed HR 19 that would prohibit awarding of any legislatively directed grants or dollars to a municipality that is a sanctuary city or community refusing to assist ICE with immigration enforcement. House Resolutions should have the force of law, but merely establishes a rule for how the House conducts certain activities. How much weight it carries as the appropriations process unfolds remains to be seen. It is unlikely a House-passed budget would include any earmarks for any community that is a sanctuary community or has policies in place to not assist immigration enforcement. However, the Senate unlikely to adopt any such restrictions. How this is issue is resolved will occur over the following months. 6 Adult-Use Marijuana Payments Being Distributed to Michigan Municipalities, Counties and Tribes; Nearly $100 Million Going to 302 Local Entities and Tribes Across State of Michigan - 108 cities, 36 villages, 80 townships, 74 counties and 4 tribes will receive payments from the Marihuana Regulation Fund. - Adult-Use Marijuana Distributions Based on Marijuana Revenues Collected in Fiscal Year 2024 o 108 cities with 590 licenses - $34.3M o City of Muskegon - $698,743.92 – 12 licenses o Muskegon County - $1.6 million - 27 licenses Earned Sick Time Act Legislation - The Legislature passed House Bill 4002 which amends the existing Earned Sick Time Act (ESTA) set to take effect on February 21st. The following is a list of those changes: Employers - 1-10 employees (small employer): must be allowed to accrue 40 hours of paid earned sick time. October 1, 2025 effective date. 40-hour carryover cap. - 11 employees and above must be allowed to accrue 72 hours paid earned sick time. 72-hour carryover cap. Employee Exemptions - Seasonal employee exemption. o Can’t use sick time within 120 days of hire, unless sick time is frontloaded (applies to all employees). o Employees hired within 2 months recoup previously accrued time, but start over on sick time accrual if more than 2 months (applies to all employees). - Variable hour employees are exempt if: o They are allowed to set their own hours. o There is no adverse personnel action taken for failing to meet a minimum number of hours. - Unpaid trainees and interns are exempt (utilizing Fair Labor Standards Act definition). - Youth employees are exempt (youth work permit). Part-Time Employees - Allows for proportional frontloading based on initial estimate provided by employer at time of hiring. 7 - If the employee works above this estimate, the hours accrue at normal rate (1 hour/30 hours worked). Notification Requirements - 7 days for foreseeable usage - For unforeseeable usage, EITHER: o As soon as practicable, OR o In accordance with employer’s policy on using sick time, if the employer notifies the employee of their policy in writing and the policy allows employees to provide notice after the employee is aware of the need to use sick time. Frontloading Allowance - Frontloading and employee can use time immediately. - Frontloading does not require carryover or paying out sick time at end of year. o Also does not require calculating and tracking accrual. Combined leave bank - 72 hours are subject to ESTA conditions, but anything above that can be used according to employer’s vacation or PTO policies/usage requirements. Collective Bargaining Agreement Language - Employer contracts with a maximum three-year term can continue taking effect if they conflict with ESTA. Base Wage - Overtime, bonuses, tips, and commissions are not required to be included. Documentation Requirements - Employees are required to provide documentation within 15 days after requested by an employer. Adverse Personnel Action - Allowed if the employee uses sick time for purposes not allowed by the act or violates notice requirements. Legal - Claim Period: not later than three years after the violation. - Private right of action has been removed. 8 - Rebuttable presumption has been removed. - A civil fine of 8 times employee’s hourly wage if an employer violates the act. - Employers must provide written notice to employees of the act’s guarantees. Department of Labor and Economic Opportunity - https://www.michigan.gov/leo/bureaus- agencies/ber/wage-and-hour/paid-medical-leave-act. 1/29/25 Gov. Whitmer Announces Funding to Help Build 708 Rental Homes Statewide Latest awards advance Statewide Housing Plan through 15 investments across 10 communities. This Low-Income Housing Tax Credit (LIHTC) program is awarding $17,332,458 in tax credits, with a total value over the next 10 years of about $173 million. LIHTCs are federal tax credits allocated by MSHDA following a competitive application process. Developers can claim credit against their tax liability annually for up to 10 years. Nelson School Apartments, Muskegon – Credit Awarded: $1,650,000 Nelson School Apartments is sponsored by General Capital Development LLC, Little River Real Estate Management LLC, and the Muskegon Housing Commission. This development has 9% tax credits and a permanent loan from Cedar Rapids Bank and Trust. It has a total development cost of $19,285,896. This development will have 38 one-bedroom units, and 14 two-bedroom units for households ranging from 30%-80% of AMI. Eight of these units will be assisted by Project-Based Vouchers through the Muskegon Housing Commission. The project will create 22 permanent jobs and 83 temporary jobs. MML – 2025 priorities Key components the League’s legislative priorities include: Creation of a Revenue Sharing Trust Fund The League emphasizes the urgent need for a stable and predictable funding source for local governments. The proposed Revenue Sharing Trust Fund will allocate a percentage of the state sales tax to statutory revenue sharing and place it in a dedicated trust fund that will protect the provision of essential services like public safety, water and sewage infrastructure, and recreational opportunities. This initiative has previously received broad bipartisan support for its efforts to support local services and community growth. Establishment of a Neighborhood Roads Fund While Michigan has invested billions of dollars to improve state roads in recent years, local road improvements have lagged far behind. The League is proposing to address the growing wear on Michigan’s neighborhood streets through the creation of a Neighborhood Roads Fund financed by a modest 50-cent Retail Delivery Fee. This dedicated funding stream is expected to generate approximately $275 million annually for neighborhood roads. By focusing on neighborhood streets, the initiative aims to address the concerns every resident sees outside their front door. 9 Continued Funding for the Revitalization and Placemaking (RAP) Program Building on the success of previous years, the League calls for ongoing investment in the Revitalization and Placemaking (RAP) Program. This initiative provides resources for projects that promote population and tax growth, invest in new housing options, and enable business creation. By allocating $50 million annually from corporate income tax revenue, the RAP program will continue to create vibrant spaces that help attract and retain residents and support Michigan’s growth efforts. Other policy priorities the League will focus on this year include: - Addressing the interaction between Headlee and Proposal A - Implementing an Employer Housing Tax Credit - Protecting locals’ ability to regulate short-term rentals - Enacting the Michigan Mobility Trust Fund - Codifying the process for implementing a stormwater utility Anthony Spearheading 'Tenant Empowerment Package' For Renters In '25 - Senate Appropriations Chair Sarah Anthony (D-Lansing) introduced this month a "Tenant Empowerment Package" for home renters, proposing new notice mandates for rent increases and allowing tenants to make their own repairs in exchange for having their rent reduced. - For the 2025-26 legislative term, Anthony's bills are SB 19, SB 20, SB 21 and SB 22. She introduced a similar four-bill package in June of last year. - Under the previous legislation, landlords would need to notify renters three months before their one-year lease ends if a lease renewal involves an anticipated rent increase, or six months before the end of 13-month and longer tenancies. - Rental agreements under the bills could not prohibit tenants from forming or organizing a "tenant union." - If a renter provides written notice of a defective condition "imminently hazardous" to life, health or safety – like the presence of bedbugs or reasonable suspicion of mold – the landlord would have 24 hours after receipt to begin repairs. - If the defective condition "deprives" the renter of the use of appliances provided by the landlord, they would have 72 hours following receipt of written notice to commence repairs. - The legislation sets up a system where if a landlord doesn't perform repairs within the new time frame, a renter could oversee their own repairs and have costs deducted from their rent. To access the deduction, they would need to obtain at least three written repair estimates. Lame Duck Legislative Session from December 2024 Big Win Opens Door for Millions in Federal Funding for Michigan Communities 10 - Ground Emergency Medical Transportation (GEMT) Program: HB 5695 o HB 5695 will authorize Michigan’s participation in the federal Ground Emergency Medical Transportation Program. This is a voluntary opt-in supplemental reimbursement program administered by the Centers for Medicare and Medicaid Services (CMS) for eligible ground emergency medical transportation providers. The amount of supplemental reimbursement to an eligible provider will be equal to the amount of federal financial participation received for the provider’s cost for the services, up to 100% of the actual cost incurred. o This legislation will bring tens of millions of federal dollars into Michigan that we have been missing out on and help improve our public safety services. Protecting Local Control, Resources, and Our Ability to Govern: MML opposed all the following bills and were able to successfully prevent them from passing. - Minimum staffing: HB 4688 and SB 1167 o This legislation would have required minimum staffing levels to be a mandatory subject of collective bargaining between the public employer and the representative of its police and fire department employees. Minimum staffing levels would also be subject to arbitration for labor disputes involving public police and fire departments. - Housing: House Bills 6095, 6096, 6097, and 6098 o House Bills 6095, 6096, 6097 and 6098 were being touted as helping to end Michigan’s housing crisis and needed housing reform at the local level. Supporters claim municipalities are stopping the state from creating enough options to house Michiganders, are adding unnecessary costs to housing, and the only way to address this is removing local governing and inserting state mandates. - Workers Compensation: House Bill 4729 o This legislation expanded the Worker’s Disability Compensation Act by providing that a respiratory or heart disease can be designated as a compensable personal injury if the disease or illness develops while the individual is in active service as a result of the performance of their duties. It is presumed that the disease or illness can be attributed to employment. As introduced, the expansion would include part-time or on-call members of a police department of a municipality, as well as part-time, on-call, or volunteer members of a fire or public safety department of a municipality. The League testified that our concerns are attributed to the inability to identify the potential cost/risk increase associated with this, and offered an amendment that would link this expansion of coverage to the First Responder Presumed Coverage Fund. - Water Affordability: Senate Bills 549-554, 980 and House Bills 5088-5092, 6228 o These bills would have created the low-income water residential affordability program fund. Revenue for the fund would be generated by a $2 per month fee on retail water meter fee assessed on all residential water customers in the state. They also established a tiered statewide low-income residential water affordability program. 11 - Part 31: Senate Bill 663, House Bill 5205 o This legislation would have removed a prohibition for the Department of Environment, Great Lakes, and Energy (EGLE) from promulgating rules under Part 31 of Natural Resources Environmental Protection Act (NREPA) Water Resources Protection that are not specifically authorized in statute. Cities perform an extensive number of currently exempt projects and apply for a significant number of permits for public works projects. Adding unchecked rule making authority could cost taxpayers significantly more due to the potential increase in price and delays of public works projects. Part 31 also includes sections that could dramatically impact communities in the MS4 program, potentially leading to unfunded mandates. - Aggregates: House Bills 4526, 4527, 4528, 6108, 6109,6110, and 6111 o This legislation would have stripped local control over the permitting of aggregate mines and undercut years of court precedent. - Polluter Pay: Senate Bills 605 and 606 o These bills would have created new standards for clean ups that could increase costs and liability, and potentially negatively impact brownfield developments. - Video Franchise Fees: House Bill 4965 o Exempted streaming services from the Video Services Act and specified that they are not required to pay franchise fees. - Property Tax Exemptions for Seniors: House Bill 4330 o Provided local municipalities the option to exempt property taxes for anyone over the age of 65. - Electric Vehicle Charging Stations: House Bill 4708 o Exempted electric vehicle charging stations from paying Personal Property Tax. - Continuing Care: House Bill 5380 o Exempted continuing care facilities from paying property taxes. - Postmark Property Taxes: House Bill 5797 o Required all cities, villages, and townships to accept the postmark as the date of receipt for property tax payments. Priorities That Did Not Pass: These bills did not make it across the finish line, but they will continue to be a top priority moving forward. - Revenue Sharing Trust Fund: House Bills 4274 and 4275 o Established the Revenue Sharing Trust Fund and dedicated 8.7% of the 4% sales tax to the fund. This would have protected and secured resources for local government. - Short-Term Rentals: House Bill: House Bill 5438 12 o House Bill 5438 would have created the Short-Term Rental Regulation Act. The bill maintained a local unit of government’s right to regulate STRs. It established a statewide registry of STR properties to assist in the administration and enforcement of the act. It also created a 6% STR excise tax to assist municipalities with the public costs of tourism. - Public Safety Trust Fund: House Bills 4605 and 4606 o Established the Public Safety and Violence Prevention Trust Fund and dedicated $75 million on an annual basis to the fund. o As a result of this legislation not passing, the $75 million in the current state budget cannot be dispersed. - Stormwater Utilities: Senate Bill 660 o This bill would have created the “Stormwater Management Utility Act” as guidance for local units of government should they utilize their existing authority to establish a stormwater management utility. It codified a formal approach to planning, funding, and managing stormwater infrastructure in the event the local unit of government decides to set up a stormwater management utility. - Oath of Office: House Bills 5699, 5700, 5701, 5702 o These bills would have addressed a conflict between state law and some municipal charters because of Proposal 2 of 2022 implementation. Together, the bills would have required township and village officials to begin their terms of office on December 1, and city officials to begin their terms on the first day of the month after their election beginning in 2025. The legislation also provided that an individual elected to fill a vacancy as a result of a special election could not take office until the election is certified by the appropriate board of canvassers. - Modernizing the Recreation Passport: House Bills 5428 and 5973 o Recreation Passport Opt-Out (HB 5428): Moving to an opt-out model would have supported our state and local parks while still maintaining an individual’s right to choose. This was expected to increase the number of participants, which in turn, would have increased revenue for much-needed improvements and maintenance. o Recreation Passport Formula Change (HB 5873): The formula change would have increased the percentage of Recreation Passport revenue allocated to local park grants from 10% to 20%, once 55% of Michiganders are participating in the Recreation Passport program. It would have increased the funding available to local parks and recreation, providing opportunities for many local communities who have been unsuccessful in receiving grants in the past. Mitigated the Impact on Local Government: MML opposed this bill, but were able to secure changes that diminished the impact on local government. - Publicly Funded Health Insurance Contribution Act (PA 152): House Bill 6058 o House Bill 6058 increases the amount that public employers will pay toward employees’ medical benefit plans. Currently, public employers can choose between an inflation- 13 adjusted capped contribution (hard cap) or a maximum 80% contribution. The proposed legislation would do away with this ceiling and replace it with increased contribution amounts that become the floor for healthcare costs. This would make it nearly impossible to manage on a year-over-year basis. o MML and other local government organizations have proposed amendments to HB 6058, as well as to Senate versions, addressing PA 152 changes that would make this legislation more manageable for municipalities. This includes returning to a ceiling for the hard cap and the maximum contribution rate, but increasing the hard cap and using a more sustainable inflationary factor. o MML was able to avoid a complete repeal of this act, make some needed changes to the hard cap, and keep the opt-out provision in the law. Other Issues of Note that Did Not Pass: - Increased flexibility for the Housing and Community Development Fund: Senate Bill 293 o The League supported this legislation - Michigan Voting Rights Act: Senate Bills 401-404 o The League was neutral on these bills - Changes to the Land Division Act: Senate Bill 480 o The League was neutral on these bills - Statewide Septic Code: Senate Bills 299 and 300 o The League was neutral on these bills FEDERAL 1/28/26 - U.S. Senator Gary Peters announced he won’t seek re-election when his term end in Jan 2027 2/18/25 - Sen. Peters’ office recently announced a continuation of the Congressional Directed Spending process. We are currently gathering more information on a potential project. Initial applications are due March 14. 14 Legislative Policy Committee Agenda Item Muskegon City Commission LPC Meeting Date: February 26, 2025 Title: $2.8 Million State Appropriation Submitted By: Jonathan Seyferth, City Department: City Manager’s Office Manager Brief Summary: Several years ago, our state legislators appropriated $2.8 million (in two buckets) for improvements at the Third Street wharf. Staff recommends that we begin spending that money soon. Detailed Summary & Background: The $2.8 million was appropriated to help move forward the initial conversations about a Fisherman’s Landing and Third Street Wharf swap. Those conversations did not come to fruition, and about 25% of the dollars have been sitting in our coffers waiting to be used. The city cannot request the additional appropriations until we start spending the dollars we already have. Staff recommends that we begin spending these dollars on engineering and planning related to improvements at Third Street Wharf and a road grid north of Shoreline Drive in that same area (as discussed in our recent public engagements). It may seem premature to start spending these dollars before any agreement with Mart Dock is finalized. However, the state has begun to look at previously appropriated dollars that have not been spent to reappropriate those funds to complete other state priorities. If we are actively spending the dollars, we believe it will lessen the chance of the state reappropriating those dollars (this is not a guarantee). Although no specific timeline has been given, we believe that within the second quarter of 2025 (April – June), the state will begin looking at these unspent dollars. It should be noted that the enabling legislation (attached) notes the dollars are for a wharf project in Muskegon, and the legislative summary (attached) specifically calls out Third Street. This boxes us in a bit on how the dollars could be used (i.e., we could not use the funds to purchase the Verplank Property, for example). Question: 1. Is the commission comfortable moving forward with spending state dollars on Third Street Wharf? If so, staff will propose to start using those dollars at our March 11th Commission Meeting. Goal/Focus Area/Action Item Addressed: Quality of Life, Destination Community Amount Requested: N/A Budgeted Item: Yes No N/A Fund(s) or Account(s): N/A Budget Amendment Needed: Yes No N/A Recommended Motion: none – for discussion only Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No X Communication Legal Review (24) From the funds appropriated in part 1 for Michigan enhancement grants, $2,000,000.00 shall be awarded to a nonprofit community house dedicated to increasing the ability of children, youth, adults, and families to succeed in a diverse community that is located in a city with a population of between 198,000 and 200,000 and in a county with a population of between 650,000 and 660,000 according to the most recent federal decennial census to support improvements to facilities that provide affordable housing and child care services. (25) From the funds appropriated in part 1 for Michigan enhancement grants, $800,000.00 shall be awarded to a city with a population of between 16,000 and 16,100 located in a county with a population of between 655,000 and 660,000 according to the most recent federal decennial census for the purchase of a new fire truck. (26) From the funds appropriated in part 1 for Michigan enhancement grants, $1,700,000.00 shall be awarded to a township with a population of between 17,500 and 17,600 located in a county with a population of between 370,000 and 375,000 according to the most recent federal decennial census for pathway and road improvements. (27) From the funds appropriated in part 1 for Michigan enhancement grants, $650,000.00 shall be awarded to a nonprofit that connects leaders and organizations with essential tools and services that free up focus for mission-related work located in a city with a population of between 123,000 and 124,000 and in a county with a population of between 370,000 and 375,000 according to the most recent federal decennial census for building improvements and programming. (28) From the funds appropriated in part 1 for Michigan enhancement grants, $590,000.00 shall be awarded to a nonprofit with a mission to help homeless and high-risk girls and young women avoid violence, teen pregnancy, and exploitation, and help them explore and access the support, resources, and opportunities necessary to be safe, to grow strong, and to make positive choices in their lives that is located in a city with a population greater than 600,000 according to the most recent federal decennial census to expand services to homeless and at-risk women in the city. (29) From the funds appropriated in part 1 for Michigan enhancement grants, $550,000.00 shall be awarded for an EGLE-permitted, shovel-ready project that would provide protection and restoration of Asylum Lake. The project would be administered by a state university and associated management council located in a city with a population of between 73,000 and 74,000 and in a county with a population of between 260,000 and 263,000 according to the most recent federal decennial census. (30) From the funds appropriated in part 1 for Michigan enhancement grants, $1,300,000.00 shall be awarded for a wharf project located in a county with a population of between 175,000 and 176,000 and in a city with a population of between 38,000 and 39,000 according to the most recent federal decennial census. (31) From the funds appropriated in part 1 for Michigan enhancement grants, $750,000.00 shall be awarded to a city with a population of between 83,500 and 84,000 located in a county with a population of between 1,250,000 and 1,300,000 according to the most recent federal decennial census for the development of a community innovation center at a former high school building. (32) From the funds appropriated in part 1 for Michigan enhancement grants, $2,000,000.00 shall be awarded to a county with a population of between 1,250,000 and 1,300,000 according to the most recent federal decennial census for economic development site validation. (33) From the funds appropriated in part 1 for Michigan enhancement grants, $500,000.00 shall be awarded to a nonprofit that develops people, places, and plans for sustainable growth on Detroit’s east side that is located in a city with a population greater than 600,000 according to the most recent federal decennial census for the engineering phase of the Mack Avenue corridor improvement plan. (34) From the funds appropriated in part 1 for Michigan enhancement grants, $500,000.00 shall be awarded to a nonprofit providing free, after-school academic and athletic programming centered around student achievement and social justice that is located in a city with a population greater than 600,000 according to the most recent federal decennial census to increase program capacity by accepting more students and to decrease the overall learning loss gap due to the COVID-19 pandemic. (35) From the funds appropriated in part 1 for Michigan enhancement grants, $1,200,000.00 shall be awarded to a city with a population of between 10,100 and 10,200 located in a county with a population greater than 1,700,000 according to the most recent federal decennial census for seawall and road repairs. (36) From the funds appropriated in part 1 for Michigan enhancement grants, $500,000.00 shall be awarded to a foundation promoting the power of education, community service, and the arts within the community that is located in a charter township with a population of between 44,000 and 44,500 and in a county with a population of between 1,250,000 and 1,300,000 according to the most recent federal decennial census for education and workforce programming for disadvantaged youth in underserved neighborhoods. (37) From the funds appropriated in part 1 for Michigan enhancement grants, $1,100,000.00 shall be awarded to a city with a population of between 48,500 and 49,000 located in a county with a population of between 260,000 and 265,000 according to the most recent federal decennial census for the replacement of an aerial fire apparatus. 140 (121) From the funds appropriated in part 1 for Michigan enhancement grants, $250,000.00 shall be awarded to a city with a population of between 129,000 and 130,000 located in a county with a population of between 840,500 and 841,000 according to the 2010 federal decennial census for tree canopy grants. (122) From the funds appropriated in part 1 for Michigan enhancement grants, $1,400,000.00 shall be awarded for a regional fire apparatus for a charter township with a population of between 32,400 and 32,500 located in a county with a population of between 107,500 and 108,000 according to the 2010 federal decennial census. (123) From the funds appropriated in part 1 for Michigan enhancement grants, $275,000.00 shall be awarded for a community financial stabilization and workforce development program operated by a human service oriented, charitable nonprofit organization that focuses on education, financial stability, and health located in a county with a population of between 344,000 and 345,000 according to the 2010 federal decennial census. (124) From the funds appropriated in part 1 for Michigan enhancement grants, $300,000.00 shall be awarded for a community green space initiative administered by a nonprofit focused on the development and implementation of community strategies and initiatives for residents in 3 cities located in a county with a population greater than 1,800,000 according to the 2010 federal decennial census. (125) From the funds appropriated in part 1 for Michigan enhancement grants, $200,000.00 shall be awarded to a nonprofit providing youth facing homelessness with shelter and educational and vocational programs located in a county with a population greater than 1,800,000 and in a city with a population greater than 600,000 according to the 2010 federal decennial census. (126) From the funds appropriated in part 1 for Michigan enhancement grants, $500,000.00 shall be awarded to a multi-agency collaborative focused on addressing the lack of accessible employment for young adults and community residents and a lack of structured and consistent approaches to providing inter-agency and cross- sectoral opportunities for the community located in a county with a population of between 600,000 and 610,000 and in a city with a population of between 188,000 and 188,100 according to the 2010 federal decennial census for the provision of social services, jobs training, adult education, GED programs, and facility renovations. (127) From the funds appropriated in part 1 for Michigan enhancement grants, $250,000.00 shall be awarded to a nonprofit grassroots organization collaborating with local unions, businesses, faith-based organizations, and residents that works to improve the quality of life for elders, families, and surrounding communities through collective growth, creative collaboration, advocacy, and innovative programming located in a county with a population greater than 1,800,000 and in a city with a population greater than 600,000 according to the 2010 federal decennial census. (128) From the funds appropriated in part 1 for Michigan enhancement grants, $500,000.00 shall be awarded for workforce development programming at an urban nonprofit advancing underserved youth and adults by expanding accessibility in education, training, and career placement located in a county with a population of between 200,000 and 201,000 and in a city with a population of between 51,500 and 52,000 according to the 2010 federal decennial census. (129) From the funds appropriated in part 1 for Michigan enhancement grants, $1,500,000.00 shall be awarded for a wharf project located in a county with a population of between 172,100 and 172,200 and in a city with a population of between 38,300 and 38,500 according to the 2010 federal decennial census. (130) From the funds appropriated in part 1 for Michigan enhancement grants, $100,000.00 shall be awarded for a fire prevention trailer replacement located in a county with a population of between 1,202,000 and 1,203,000 and in a city with a population of between 79,500 and 80,000 according to the 2010 federal decennial census. (131) From the funds appropriated in part 1 for Michigan enhancement grants, $36,000.00 shall be awarded for level 2 electric vehicle charging stations located in a city hall parking lot located in a county with a population of between 1,202,000 and 1,203,000 and in a city with a population of between 79,500 and 80,000 according to the 2010 federal decennial census. (132) From the funds appropriated in part 1 for Michigan enhancement grants, $300,000.00 shall be awarded for crisis intervention training at a police department located in a county with a population of between 1,202,000 and 1,203,000 and in a city with a population of between 79,500 and 80,000 according to the 2010 federal decennial census. (133) From the funds appropriated in part 1 for Michigan enhancement grants, $200,000.00 shall be awarded to implement phase I of a streetscape plan located in a county with a population greater than 1,800,000 according to the 2010 federal decennial census. (134) From the funds appropriated in part 1 for Michigan enhancement grants, $750,000.00 shall be awarded to repair a seawall located in a county with a population greater than 1,800,000 according to the 2010 federal decennial census. (135) From the funds appropriated in part 1 for Michigan enhancement grants, $500,000.00 shall be awarded for a loan financing program operated by an organization focused on bringing partnerships and philanthropic resources together to support real estate and business projects that struggle to find traditional financing located in a county with a population greater than 1,800,000 and in a city with a population greater than 600,000 according to the 2010 federal decennial census. (136) From the funds appropriated in part 1 for Michigan enhancement grants, $500,000.00 shall be awarded for a capital improvement grant administered by an alliance that focuses on Detroit’s region-serving parks located 155 Table 1: Michigan Enhancement Grants - Senate Bill 82 (S-3) CR-1 97 Newaygo County Fair Barn $800,000 98 Arenac Fairgrounds - infrastructure installation 2,830,000 99 Sanilac Co. Parks ADA Compliance 20,000 100 St. Clair Co. Mid-city Nutrition - new location completion assistance 50,000 101 Holiday Camp in Monroe - programming 150,000 102 St. Joseph Center for Hope - Monroe - programming 100,000 103 Blight Cleanup - City of Detroit 200,000 104 Detroit Public Library - maintenance and repair 500,000 105 Luce County road repairs and paving 6,000,000 106 Calumet Fire restoration 250,000 107 Upper Peninsula State Fair - operations 500,000 108 Restore the Rapids - in channel river improvements 7,000,000 109 Van Andel Institute - programming 1,000,000 110 Fort Gratiot campground infrastructure upgrades 50,000 111 Local Dock - Long Lake Boat Launch improvements 300,000 112 Walbro Corporation - Cass City - expansion 1,500,000 113 Linden - Mill Pond - kayak launch improvements 30,000 114 West Michigan Aviation Academy - Hangar Project 1,000,000 115 Calvin Prison Institute 1,000,000 116 MiLaunch - Aerospace - Command and Control program 250,000 117 Small Business Development Centers 200,000 Novi Education Foundation: Funding for outdoor classrooms and outdoor gardening programs during 118 the summer 400,000 119 Plymouth Cultural Center grant to improve ADA accessible infrastructure. 250,000 120 City of Sterling Heights for elections-related costs 200,000 121 Tree Canopy Grants, City of Sterling Heights 250,000 122 Delta Township Regional Fire Apparatus 1,400,000 United Way of Washtenaw County: Community Financial Stabilization and Workforce Development 123 Program 275,000 Eden Park Community Infrastructure Project administered by the Tri City Community Development 124 Corporation covering Detroit, Ecorse, and River Rouge. 300,000 125 Covenant House program grant 200,000 Grand Rapids Center for Transformation funding for provision of social services, jobs training, adult 126 education, GED programs, and facility renovations. 500,000 127 Grant Bridging Communities - programming 250,000 128 Youth Development Corporation, Inc. - Workforce Development Grant 500,000 129 Third Street Wharf Project - City of Muskegon on Muskegon Lake 1,500,000 130 Farmington Hills - Fire Prevention Trailer replacement 100,000 131 Farmington Hills - Level 2 EV charging stations for city hall parking lot 36,000 132 Farmington Hills Police Department Crisis Intervention Training 300,000 Phase I Implementation of the Mack Avenue Streetscape Plan for the cities of Detroit, Grosse Pointe 133 Park, Grosse Pointe, and Grosse Pointe Farms. 200,000 134 Lakeshore Drive Seawall Repair 750,000 135 Invest Detroit loan financing program support 500,000 136 Detroit Parks Coalition - capital improvement grant 500,000 137 Project Healthy Community - programming 300,000 138 Royal Oak Township - recreation center improvements 125,000 139 Kids Kicking Cancer - programming 200,000 140 Alleyway improvement projects in Hamtramck to improve business growth. 750,000 141 City of Lansing - public safety/ security measures at Capitol area 1,000,000 142 City of Lathrup Village - infrastructure grant - local road system and storm ditch system. 200,000 House Fiscal Agency 92 9/21/2021 Agenda Item Review Form Muskegon City Commission – Legislative Policy Committee LPC Meeting Date: February 26, 2025 Title: Commission Meeting Attendance Submitted By: Vice-Mayor Rebecca St.Clair Department: City Commission Brief Summary: Memo Summary: To have a discussion on the importance of consistent attendance at commission meetings. Regular participation is essential for informed decision-making, productive discussions, and the overall effectiveness of our work. To ensure clarity and accountability, perhaps we should consider adding formal attendance expectations to our guidelines of conduct. This will help reinforce our shared commitment to fulfilling our responsibilities. Detailed Summary & Background: Goal/Focus Area/Action Item Addressed: Amount Requested: Budgeted Item: Fund(s) or Account(s): Budget Amendment Needed: Recommended Motion: Discussion only. Approvals: Guest(s) Invited / Presenting: Legislative Policy Committee Agenda Item Muskegon City Commission LPC Meeting Date: February 26, 2025 Title: L Dock Ownership – Hartshorn Marina Submitted By: Jonathan Seyferth, City Department: City Manager’s Office Manager Brief Summary: Staff would like the commission to discuss if the city should own the L Dock, which is tentatively approved for Hartshorn Marina as part of Adelaide Pointe’s in-out boat operation. Detailed Summary & Background: Per the shared use agreement, Adelaide Pointe is allowed to use the forklift drops at Hartshorn Marina for in-out boat operations. This includes using two finger docks and an L dock (so named because of its shape). The city has debated the idea of owning the L Dock which would provide us more control over its use. However, no final decision has been made. Questions: 1. What’s the Commission’s appetite for owning the L Dock? 2. What process would you like staff to go through if we were to own it and pay for it? Goal/Focus Area/Action Item Addressed: Quality of Life, Destination Community Amount Requested: N/A Budgeted Item: Yes No N/A Fund(s) or Account(s): N/A Budget Amendment Needed: Yes No N/A Recommended Motion: none – for discussion only Approvals: Guest(s) Invited / Presenting: Immediate Division Head Information Technology Yes Other Division Heads No Communication Legal Review Agenda Item Review Form Muskegon City Commission – Legislative Policy Committee LPC Meeting Date: 2/26/2025 Title: Event Food Vendors Submitted By: Commissioner Gorman Department: City Commission Brief Summary: To discuss updating Event Regulations in the City of Muskegon specifically regarding food vendors being placed in front of permanent restaurant businesses on Western Avenue. Discuss potential options for zones along Western Avenue more appropriate so as not to create direct competition from food vendors and restaurant businesses. Detailed Summary & Background: Goal/Focus Area/Action Item Addressed: n/a Amount Requested: n/a Budgeted Item: n/a Fund(s) or Account(s): Budget Amendment Needed: Recommended Motion: Discussion only. Approvals: Guest(s) Invited / Presenting:
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