City Commission Minutes 04-11-2023

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                                 City of Muskegon
                             City Commission Meeting
                                      Minutes


                              April 11, 2023, 5:30 pm
                                Muskegon City Hall
                      933 Terrace Street, Muskegon, MI 49440

Present:              Mayor Ken Johnson
                      Commissioner Rachel Gorman
                      Commissioner Rebecca St.Clair
                      Vice Mayor Willie German, Jr.
                      Commissioner Michael Ramsey
                      Commissioner Teresa Emory

Absent:               Commissioner Eric Hood

Staff Present:        City Manager Jonathan Seyferth
                      City Clerk Ann Meisch
                      City Attorney John Schrier
                      Deputy City Clerk Kimberly Young



1.    Call To Order
      The Regular Meeting of the City of Muskegon was held at City Hall, 933 Terrace
      Street, Muskegon, Michigan at 5:30 p.m. on Tuesday, April 11, 2023.
2.    Prayer
      Pastor Jeremy Lenertz, First Wesleyan Church, opened the meeting with prayer.
3.    Pledge of Allegiance
      The Pledge of Allegiance to the Flag was recited by the Commission and the
      public.
4.    Roll Call
      As recorded above
5.    Honors, Awards, and Presentations


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6.   Public Comment on Agenda Items
     Public comments were received.
7.   Consent Agenda
     Action No. 2023-50
     Motion by: Commissioner Ramsey
     Second by: Vice Mayor German
     To accept the consent agenda as presented, minus item 7B.
     Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair, Vice
     Mayor German, Commissioner Ramsey, and Commissioner Emory
     Absent (1): Commissioner Hood
                                                            MOTION PASSES (6 to 0)


     7.a   Approval of Minutes - City Clerk
           To approve the minutes of the March 13, 2023 Worksession and March
           14, 2023 Regular Meeting.
           STAFF RECOMMENDATION: To approve the minutes.
     7.c   Amendments to the zoning ordinance, marihuana processing -
           Planning - 2ND READING REQUIRED
           Staff initiated request to amend the B-2, B-4, I-1, I-2 and MC sections of
           the zoning ordinance to allow marihuana processing facilities without
           extraction methods classified as hazardous under the Michigan Building
           Code as a special use permitted. The Planning Commission
           recommended approval of the amendments by a 7-0 vote at their March
           16, 2023 meeting.
           STAFF RECOMMENDATION: To approve the request to amend the B-2,
           B-4, I-1, I-2 and MC sections of the zoning ordinance to allow marihuana
           processing facilities without extraction methods classified as hazardous
           under the Michigan Building Code as a special use permitted.
     7.d   Rezoning a portion of 560 Mart St - Planning - 2ND READING
           REQUIRED
           Request to rezone a portion of the property at 560 Mart St from B-2,
           Convenience & Comparison Business to WM-Waterfront Marine, by West


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      MI Dock & Market. The Planning Commission recommended approval of
      the rezoning by a 7-0 vote at their March 16 meeting.
      STAFF RECOMMENDATION: To approve the request to rezone a portion
      of 560 Mart St from B-2 to Waterfront Marine.
7.e   Rezoning of 1163 Terrace St - Planning - 2ND READING REQUIRED
      Request to rezone the property at 1163 Terrace St from R-3 Residence to
      B-2, Convenience & Comparison Business, by Ryan Burns. The Planning
      Commission recommended approval of the rezoning by a 7-0 vote at their
      March 16 meeting.
      STAFF RECOMMENDATION: To approve the rezoning of 1163 Terrace
      St from R-3 to B-2.
7.f   Deficit Elimination Plan - Brownfield Redevelopment Authorities -
      Finance
      To approve the Deficit Elimination plan and resolution for the Brownfield
      Redevelopment Authority (combined) and direct staff to submit plan to the
      State of Michigan.
      At June 30, 2022 the Brownfield Redevelopment Authority (combined) had
      a $64,211.00 deficit. Act 275 of Public Acts of 1980 requires the City to
      formulate a deficit elimination plan and submit it to the Michigan
      Department of Treasury. The deficit elimination plan and resolution for the
      Brown Field Redevelopment are attached.
      The State wanted more clarification on the deficit with a different layout,
      plus I extended the plan one more year.
      STAFF RECOMMENDATION: To approve the deficit elimination
      resolution for the Brownfield Redevelopment.
7.g   Emergency Management Resolution - Pubic Safety
      We are asking for resolution to the Emergency Management Resolution
      as there are name/job updates. The City of Muskegon is incorporated into
      the Muskegon County Emergency Management Program. By being part
      of the county Emergency Management Program, the City of Muskegon
      and the County of Muskegon have certain responsibilities to each other.
      This Support Emergency Operations Plan was developed to identify the
      responsibilities between the City of Muskegon and the County of
      Muskegon in regards to pre-disaster emergency management activities.



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      STAFF RECOMMENDATION: To approve and the appropriate
      department heads, city mayor and city clerk to sign the 2023 Emergency
      Management Resolution as is with the updated names and jobs titles.
7.h   Sale of 740 Leonard Avenue - City Manager
      Staff is requesting approval of a purchase agreement for 740 Leonard
      Avenue. 740 Leonard Avenue was constructed through the agreement
      with Rudy Briggs to construct infill housing with ARPA funding. The offer
      is for full asking price with no seller concessions. Please note that the
      offer is contingent on the sale of the buyer’s current residence. 740
      Leonard will remain on the market until the contingency is removed.
      STAFF RECOMMENDATION: To approve the purchase agreement for
      740 Leonard Avenue.
7.b   Opioid Settlement, Round 2 - City Manager
      This is the second round of Opioid settlement dollars the City will be
      receiving. This settlement agreement is with Teva, Allergan, CVS, and
      Walgreens. Participation in the settlement agreement removes the City’s
      right to take individual legal action against any of the participating
      companies.
      There are several legal actions taken against pharmaceutical companies
      and retailers (pharmacies) which had a large role in creating the opioid
      crisis.
      The State of Michigan is participating in settlements with Teva, Allergan,
      CVS, and Walmart. Because the state is participating, local units have the
      option to participate as well and we have until Tuesday, April 18 to opt in.
      If we opt in we will receive a portion of the state’s settlement dollars
      related to this action. We do not have exact estimates of dollars the City
      will receive related to this settlement round.
      A few items to note:
      - Settlement dollars can only be used for specific opioid related uses (an
      attachment follows the settlement documents with those approved uses –
      mostly related to treatment and services for those suffering from opioid
      addiction)
      - Participation takes away the City’s ability to take legal action against
      the participating companies
      STAFF RECOMMENDATION: To approve participation in the national
      opioid settlement as presented by the State of Michigan with Teva,


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             Allergan, CVS, and Walgreens and authorize the City Manager to sign all
             related documents.
             Action No. 2023-51
             Motion by: Commissioner St.Clair
             Second by: Commissioner Ramsey
             To approve participation in the national opioid settlement as presented by
             the State of Michigan with Teva, Allergan, CVS, and Walgreens and
             authorize the City Manager to sign all related documents.
             Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
             St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
             Emory
             Absent (1): Commissioner Hood
                                                             MOTION PASSES (6 to 0)


8.    Public Hearings
9.    Unfinished Business
10.   New Business
      10.a   Non-union employee insurance premiums - City Manager
             Traditionally (and per all 5 union contracts) employees paid 10% of their
             health benefits (after 2017 this included three components Health
             Insurance, Co-insurance and Deductibles). At some point an error in the
             calculation occurred and employees began paying more than 10%. The
             unions brought this to our attention in early 2023 and the insurance
             contributions have been corrected for the unions (as it’s a negotiated
             benefit we cannot divert from this percent). Now the Commission needs to
             decide how to handle non-union employees’ contributions which
             traditionally have been the same as union employees.
             Starting in 2017 the City began using three different factors to determine
             employee contributions to their insurance premiums (a percent of actual
             monthly premiums and a percent of City Paid Benefits (co-insurance &
             deductibles)). Prior to 2017 just insurance premiums were used as a
             factor. This change was made because of cost increases in co-insurance
             and deductibles.



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Sometime after 2017 a calculation error occurred and employee’s
contributions increased above the 10% level. Technically, this is ok for
non-union employees as the Commission can set the non-union insurance
contributions at any rate it desires. However, traditionally, the insurance
contributions have been the same across all employee classes. Staff is
recommending that non-union employees be brought into line with union
employees and contribute 10% toward the total cost of their health
insurance (including co-insurance & deductibles). For the balance of the
current plan year, this will cost the City about an additional $12,000 in
health benefit costs (this is union and non-union employees). For future
years, we’ll budget correctly for the adjustment.
Another consideration this brings up, does the City refund to non-union
employees’ overpayments of health insurance contributions for the same
time period as we were required to do for union employees? (Going back
to Jan. 1, 2020.) We do not have an exact number on what this
overpayment back to employees would be, but in general would be at
most $3,100 for the three years of overpayments per employee. This
would be for a family plan; single and double refunds would be less. The
reason we don’t have a hard number on this is because the finance
department has to go employee by employee to calculate the individual
overpayments.
STAFF RECOMMENDATION: To change non-union staff contributions for
insurance to 10% inclusive of actual health care premiums and City Paid
Benefits of co-insurance and deductibles.
Action No. 2023-52 (A)
Motion by: Commissioner St.Clair
Second by: Commissioner Ramsey
To change non-union staff contributions for insurance to 10% inclusive of
actual health care premiums and City Paid Benefits of co-insurance and
deductibles.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
                                                MOTION PASSES (6 to 0)



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10.b Climate Action - City Manager
       A Climate Action resolution to drive City policy on this topic.
       Earlier this year the Commission asked staff to draft a Climate Action
       resolution that would direct City staff and departments regarding climate
       change. This resolution sets out broad guidelines for staff to operate under
       to impact the City’s (municipal corporation’s) carbon footprint with the
       objective of becoming carbon neutral by 2040.
       STAFF RECOMMENDATION: To approve the City of Muskegon’s Climate
       Action Resolution with the objective of measuring and reducing the City’s
       carbon footprint and authorize the Mayor and Clerk to sign.
       Action No. 2023-52(B)
       Motion by: Commissioner Ramsey
       Second by: Commissioner Emory
       To approve the City of Muskegon’s Climate Action Resolution with the
       objective of measuring and reducing the City’s carbon footprint and
       authorize the Mayor and Clerk to sign.
       Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
       St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
       Emory
       Absent (1): Commissioner Hood
                                                         MOTION PASSES (6 to 0)


10.c   Amendment to the zoning ordinance, carriage house requirements -
       Planning - 2ND READING REQUIRED
       Staff initiated request to amend the form-based code section of the zoning
       ordinance to allow carriage houses with only a one-story minimum
       requirement and only a 20-foot depth requirement.
       Carriage houses are currently required to be two stories and have a
       minimum depth of 30 feet.
       The Planning Commission recommended approval of the amendments by
       a 6-1 vote at their March 16 meeting.




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             STAFF RECOMMENDATION: To approve the requested amendments to
             allow carriage houses with only a one-story minimum requirement and
             only a 20-foot depth requirement
             Action No. 2023-52(C)
             Motion by: Commissioner Ramsey
             Second by: Commissioner St.Clair
             To approve the requested amendments to allow carriage houses with only
             a one-story minimum requirement and only a 20-foot depth requirement.
             Ayes: (5): Mayor Johnson, Commissioner Gorman, Commissioner
             St.Clair, Commissioner Ramsey, and Commissioner Emory
             Nays: (1): Vice Mayor German
             Absent (1): Commissioner Hood
                                                             MOTION PASSES (5 to 1)


11.   Any Other Business
      11.a   City Manager Comments
             City Manager, Jonathan Seyferth, explained that the podium was in the
             center of the meeting room on a trial basis. Manager Seyferth also
             informed the Commission that he and City Clerk, Ann Meisch, would be
             representing the city in attending the funeral of Dennis Stepke, former City
             Manager for the City of North Muskegon.
      11.b Pubic Safety Director Update
             Chief Kozal provided an update on the investigation of a recent shooting
             resulting in the tragic loss of life in the city. He went on to inform the
             Commission of the efforts the department is taking to try to reduce gun
             violence.
12.   Public Comment on Non-Agenda items
      Public comments were received.
13.   Closed Session
      13.a   Pending Litigation
             Action No. 2023-53



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Motion by: Commissioner St.Clair
Second by: Vice Mayor German
To go in to closed session to consult with our attorneys regarding
settlement strategy in connection with Loretta Lyons versus Muskegon
Police Department Officers Richard McCabe, James Gust, Tony Fountain,
and Doug Conrad, United States District Court Western District of
Michigan, Case number 22-CV-0167 because an open meeting would
have a detrimental financial effect on the settlement position of the City of
Muskegon and defendants.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
                                                 MOTION PASSES (6 to 0)


Action No. 2023-53
Motion by: Commissioner St.Clair
Second by: Commissioner Emory
To return to open session.
                                                         MOTION PASSES


Action No. 2023-53
Motion by: Commissioner Ramsey
Second by: Commissioner Emory
To follow the advice from counsel regarding settlement of Lyons v.
McCabe, et al. lawsuit pending in Federal Court in the Western District of
Michigan.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
Emory
Absent (1): Commissioner Hood
                                                 MOTION PASSES (6 to 0)



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14.   Adjournment
      The City Commission meeting adjourned at 7:35 p.m.



                                                    _________________________
                                                           Respectfully Submitted,
                                               Ann Marie Meisch, MMC - City Clerk




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