View the PDF version Google Docs PDF Viewer View the Video
City of Muskegon
City Commission Meeting
Minutes
September 26, 2023, 5:30 pm
Muskegon City Hall
933 Terrace Street, Muskegon, MI 49440
Present: Mayor Ken Johnson
Commissioner Rebecca St.Clair
Vice Mayor Willie German, Jr.
Commissioner Michael Ramsey
Commissioner Teresa Emory
Absent: Commissioner Rachel Gorman
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
Mayor Johnson called the Muskegon City Commission meeting to order 5:30
p.m.
2. Prayer
Pastor Michael McGee, Spring Street Missionary Baptist 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
1
5. Honors, Awards, and Presentations
5.a Commendation Letter Presentation to Muskegon Fire Department
from Lakeside Aerie #3306
Mayor Johnson read and presented a Letter of Commendation to the City
of Muskegon Fire Department for 150 years of tireless and heroic service
to the City of Muskegon and its surrounding communities, from the
Lakeside Aerie, #3306.
5.b Memorial for Larry Spataro
Mayor Johnson read and presented a Resolution of Respect and
Remembrance for Lawrence O. Spataro. The Resolution was presented
on behalf of the City Commission and citizens of Muskegon, recognizing
and expressing deep gratitude for the public service of Lawrence O.
Spataro and extending condolences to his family, friends, colleagues, and
all who were touched by his life of service.
6. City Manager Updates on Agenda
City Manager Jonathan Seyferth announced that 7.o, Drivers License for All
Resolution, would be added to the Consent Agenda, led out by Commission
Ramsey. Manager Seyferth also announced that the Commission will not be
taking action on New Business item 10.a, Rezoning of Properties in the Angel,
McLaughlin, and Jackson Hill Neighborhoods - at tonight's meeting. However,
public comments will be taken regarding the item.
7. Public Comment on Agenda Items
Public comments were received.
8. Consent Agenda
Action No. 2023-99
Motion by: Commissioner Ramsey
Second by: Commissioner St.Clair
To accept the Consent Agenda as presented, minus items 7b, 7e, 7j, 7l, 7m, 7n,
and 7o.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
2
MOTION PASSES (5 to 0)
8.a Approval of Minutes - City Clerk
To approve the minutes of the September 11, 2023 Worksession and
September 12, 2023 Regular Meeting.
STAFF RECOMMENDATION: To approve the minutes.
8.c Amendment to the Zoning Ordinance - Residential Setback
Requirements - 2nd Reading - Planning
Staff-initiated request to amend Section 404 of the zoning ordinance to
modify rear setback requirements and to create a front build-to zone in lieu
of front setbacks in single-family residential zones. the Planning
Commission recommended approval of the amendment by a 4-1 vote at
their August 10 meeting.
STAFF RECOMMENDATION: To approve the request to amend Section
404 of the zoning ordinance as presented.
8.d 2023 Justice Assistance Grant - Police Department
The Police Department is seeking approval to enter into a Memorandum
of Understanding (MOU) with the County of Muskegon and Muskegon
Heights to apply for the allocated 2023 JAG grant funds.
The Police Department is seeking approval to enter into a MOU with the
County of Muskegon and Muskegon Heights to apply for the allocated
2023 Edward Byrne Memorial Justice Assistance Grant (JAG) program
funds. This year’s local JAG allocations to disparate jurisdictions in our
county totals $43,247. The City of Muskegon will continue to act as the
fiduciary and receive $25,571, the City of Muskegon Heights would be a
subawardee and receive $17,676 and the County of Muskegon would not
receive funding. Similar to past years, the City of Muskegon’s portion of
this grant will be used for the prosecution of city ordinance cases dealing
primarily neighborhood issues.
STAFF RECOMMENDATION: Approve the 2023 JAG Program Award
Memorandum of Understanding (MOU), authorize the Mayor to sign, and
authorize staff to apply for the 2023 JAG grant funds.
8.f Former General Fund Transfers for FY2022-23 - Finance
3
During the close out of fiscal year 2022-23 and based on the financial
results for the fiscal year ended June 30, 2023 we want to transfer
$90,000 from the General Fund to the Marina Fund to eliminate a fund
balance deficit.
At the close of FY2022-23 the Marina fund requires a transfer from the
General Fund. (1) The FY2022-23 budget called for a General Fund
transfer of $90,000 to the Marina Fund to avoid a fund balance deficit.
The Marina fund despite initial transfer from $450,000 General fund needs
additional help to avoid a deficit. At the end of the 2022-23 year the
current liabilities exceed current assets by approximately $90,000.
AMOUNT REQUESTED: $90,000
FUND OR ACCOUNT: Transfer $90,000 from 101 to 594
STAFF RECOMMENDATION: To approve the General Fund transfers of
$90,000 to the Marina Fund.
8.g Sale of 1530 Hoyt Street - Manager's Office
Staff is seeking approval of the sale of 1530 Hoyt Street. 1530 Hoyt Street
was constructed through the agreement with Dave Dusendang to
construct infill housing with ARPA funding. The offer is a full price offer
with no seller concessions.
STAFF RECOMMENDATION: To approve the purchase agreement for
1530 Hoyt Street.
8.h Sale of 1647 Terrace Street - Manager's Office
Staff is seeking approval of the sale of 1647 Terrace Street. 1647 Terrace
Street was constructed through the agreement with Dave Dusendang to
construct infill housing with ARPA funding. The offer is for $18,000 over
asking price with $10,000 in sellers concessions and $8,000 toward
appliances and air conditioning. This results in a full price offer.
STAFF RECOMMENDATION: To approve the purchase agreement for
1647 Terrace Street.
8.i First Amendment to Real Estate Purchase Agreement DMDC2-Splash
Pad - Economic Development
An amendment to the Real Estate Purchase Agreement between the
Downtown Muskegon Development Center No. 2 Association (the “Seller”)
4
and The City of Muskegon (the “Buyer”) for the purchase of Unit 10 ((the
“Property”) referred to as the Western Avenue Splash Pad.
On June 27, 2023, this item was presented to the City Commission and
was approved. The Seller and Buyer now wish to amend the Purchase
Agreement, as detailed in the attached amendment. Both parties propose
extending the closing date to no later than November 1, 2023.
AMOUNT REQUESTED: $1,188.75
FUND OR ACCOUNT: Planning
STAFF RECOMMENDATION: To approve the Amendment to the Real
Estate Purchase Agreement made between Downtown Muskegon
Development Center No. 2, Association and The City of Muskegon for the
purchase of Unit 10 (the “Property”) referred to as the Western Avenue
Splash Pad authorizing the Deputy City Manager to sign.
8.k Transmission Main Water Meter - DPW - Water Filtration
Staff is requesting approval to award the transmission main water meter
project to Wadel Stabilization.
A 30” water transmission main was recently constructed from the Water
Filtration Plant to the Muskegon Channel. While the primary purpose of
this water main is to provide a second connection to the Muskegon County
Northside water system, it also serves the City of Muskegon’s water
system. An existing water meter near the channel measures all water flow
into the County water system, but it does not capture any water flow into
the City. Installing a water meter near the Water Filtration Plant will
measure all the water flowing through this main, including the currently
unmetered water flowing into the City. Metering this water as it leaves the
Water Filtration Plant is critical to overseeing water plant operations,
managing the water fund, and ensuring regulatory compliance.
The Commission has already approved earlier stages of this project. At
the September 27, 2022 meeting, the Commission approved contracting
Prein&Newhof for engineering services for the design, bidding and
construction phases of this project. At the August 22, 2023 meeting, the
Commission approved an amendment to the agreement with Muskegon
County to permit the installation of the meter on the County-owned water
main.
An invitation to bid on the construction portion of this project was posted
on the City’s website and four bids were received. Prein&Newhof reviewed
5
the bids and recommends the low bid of $92,580.00 from Wadel
Stabilization. This project is included in the Water Filtration Plant’s budget
for FY 23-24.
AMOUNT REQUESTED: $92,580.00
FUND OR ACCOUNT: 591-901-801-092034
STAFF RECOMMENDATION: To award the transmission main water
meter project to Wadel Stabilization.
8.b Fireworks Display for NYE Ball Drop - City Clerk
Pyrotecnico is requesting approval of a fireworks display permit for
January 1, 2024, in a parking lot between 3rd and 4th street, west of
Shoreline Drive. The fire Marshall will inspect the fireworks on the day of
the event. Contingent upon approval of insurance.
STAFF RECOMMENDATION: To approve the fireworks display permit for
Pyrotecnico, contingent upon inspection of the fireworks and approval of
the insurance.
Action No. 2023-100(b)
Motion by: Commissioner Ramsey
Second by: Commissioner St.Clair
To approve the fireworks display permit for Pyrotecnico, contingent upon
inspection of the fireworks and approval of the insurance.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
MOTION PASSES (5 to 0)
8.e Former Employee Health Refund Calculation - 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%. This
was brought to our attention in early 2023, and the insurance contributions
have been corrected for all active employees. The commission must now
6
consider addressing this matter with former team members who left
employment between the error starting and being corrected.
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.
Sometime after 2017 a calculation error occurred and employee
contributions increased above the 10% level.
Earlier this year the City Commission approved repayment of benefit
overpayments to current employees. The administration is now asking the
Commission to consider reimbursement of the overpayment to former
employees who left the City between 2017 and the end of 2022 who also
overpaid insurance premiums.
During that time period, we had 58 former team members who took health
insurance and overpaid. Individual overpayment ranges from about $3,200
to less than $10. The total cost to repay these former team members the
overpayment is $51,696.83.
AMOUNT REQUESTED: $52,696.83
FUND OR ACCOUNT: Various - the appropriate departments and funds
will cover this cost.
STAFF RECOMMENDATION: To approve Repayment of overpaid
insurance premiums to former team members.
Action No. 2023-100(e)
Motion by: Vice Mayor German
Second by: Commissioner St.Clair
To approve Repayment of overpaid insurance premiums to former team
members.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
MOTION PASSES (5 to 0)
7
8.j PM Restroom MNRTF Grant Agreement - Parks & Recreation
Staff is requesting approval to execute the attached agreement for the
MNRTF Grant for the construction of a new restroom building adjacent to
the “kite shack,” as well as rehabilitation of the kite shack building.
The City of Muskegon has been awarded a $300,000 Grant from the
Michigan Natural Resources Trust Fund (MNRFT) administered by the
Michigan Department of Natural Resources. The award includes a
required City match amount of $300,000, which is budgeted in this fiscal
year. The City of Muskegon is required to execute the included agreement
to meet funding requirements, which is of the standard MDNR form. The
concept drawings of the improvements are included for reference.
AMOUNT REQUESTED: $300,000
FUND OR ACCOUNT: 445(Public Improvement)
STAFF RECOMMENDATION: To approve the MNRTF Grant agreement
including the approving resolution, and authorize the DPW Director to
sign.
Action No. 2023-100(j)
Motion by: Commissioner Ramsey
Second by: Commissioner Emory
To approve the MNRTF Grant agreement including the approving
resolution and to appropriate all funds necessary to complete the project
during the project period and to provide $400,000 to match the grant
authorized by the department, and authorize the DPW Director to sign.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
MOTION PASSES (5 to 0)
8.l Filter Plant Cell Tower Verizon Lease - DPW
Staff requests authorization to enter into a lease with “Muskegon Cellular
Partnership By: Cellco Partnership d/b/a Verizon Wireless” to grant
Verizon space on the City’s cellular tower at the water filtration plant.
8
In early 2021 Commission authorized the construction of a cellular
communications tower at the water filtration plant in the hope of spurring
cellular companies to provide better service in the extreme western part of
the City, including the beach. Since that time, staff has been working with
Maralat Communications to entice a cellular provider to locate on the
tower.
A lease has been negotiated with Verizon Wireless and is included for
consideration and approval. The terms are $3,500 per month for 25 years
(including extensions) with a 2% annual escalator, a total income to the
water fund of $1,345,273 over the life of the lease. At the time of tower
construction, it was anticipated we would achieve terms of $1,800 per
month with a 3% annual escalator. Over the 25-year term of the lease,
the negotiated terms will bring in more than $550,000 over expectations.
Much of the credit goes to Maralat Communications and Parmenter Law
for assisting with negotiations.
Several additional spaces on the tower are available, and staff hopes this
lease will encourage other providers to locate on the tower soon, further
improving service in the area. The construction cost of the tower will be
paid back by the end of just the fourth year of this lease.
STAFF RECOMMENDATION: To approve the presented lease with
Muskegon Cellular Partnership by: Cellco Partnership d/b/a Verizon
Wireless, and authorize the Mayor to sign.
Action No. 2023-100(L)
Motion by: Commissioner Ramsey
Second by: Commissioner St.Clair
To approve the presented lease with Muskegon Cellular Partnership by:
Cellco Partnership d/b/a Verizon Wireless, and authorize the Mayor to
sign.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
MOTION PASSES (5 to 0)
8.m Zencity Contract Approval - Manager's Office
9
Staff is requesting approval of a 5-year contract with Zencity, the city's
community engagement tool, Connect Muskegon, that has been in trial for
the last 9 months.
In December 2022, staff began vetting several community engagement
platforms. This platform will be the go-to source for our neighbors to
engage with and provide feedback to city staff on projects or issues
impacting the community.
The Manage signed an initial 1-year contract with Zencity to test the
product and gather staff, commission and community experience. Since
launching the product in March 2023, city staff from all divisions have use
the forward-facing portion of Zencity, known publicly as "Connect
Muskegon" for over 15 projects. The product is user friendly for staff, and
has received several positive comments from community members on the
depth and detail of each project.
AMOUNT REQUESTED: $24,500 annually, for 5 years
FUND OR ACCOUNT: 101-103-801
STAFF RECOMMENDATION: To approve the 5-year contract with Zencity
Technologies US, Inc and authorize the City Manager to sign.
Action No. 2023-100(m)
Motion by: Commissioner St.Clair
Second by: Vice Mayor German
To approve the 5-year contract with Zencity Technologies US, Inc and
authorize the City Manager to sign.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
MOTION PASSES (5 to 0)
8.n Community Relations Committee Recommendations - City Clerk
To concur with the CRC recommendations to make the following
appointments to the Parks & Recreation Advisory Board.
Representatives from Ward I:
• Sarah DeLarosa – Term expiring 2024
10
• Hillery Ross-Furse – Term expiring 2025
Representatives from Ward II:
• Anthony Olshansky – Term expiring 2024
• Jequan Brown – Term expiring 2026
Representatives from Ward III:
• Sidney Long – Term expiring 2026
• David Ruck – Term expiring 2024
Representatives from Ward IV:
• Aaron Botbyl-Mast – Term expiring 2025
• Leann Hayward – Term expiring 2024
Representatives At Large – (One as chair, non-voting member)
• John Burt – Term expiring 2024
• Roberta King – Term expiring 2025
Representative from Muskegon Public Schools
• Montrell Dockery – Term expiring 2024
STAFF RECOMMENDATION: To concur with the Community Relations
Committee’s recommended appointments as stated above.
Action No. 2023-100(n)
Motion by: Commissioner Ramsey
To concur with the Community Relations Committee’s recommended
appointments as stated above.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
MOTION PASSES (5 to 0)
8.o Resolution in Support of Drive Safe Legislation - Manager's
Office/Commissioner Ramsey
11
Commissioner Ramsey introduced the topic of supporting Drive Safe
Legislation at the September 10, 2023 Worksession Meeting. The state
legislature is currently considering the Drive SAFE (Safety, Access,
Freedom, and the Economy) Act, which would provide undocumented
Michigan residents with the option to obtain a Michigan Driver's License.
This is legislation that has been passed in 20 other state that allows for
driver's licenses to be issued to undocumented residents. The group
organizing the legislation feels that allowing licenses to be issued will have
various positive impacts for both the state and the individuals obtaining the
licenses. Before 2008, Michigan issued driver's licenses and IDs to
undocumented individuals. More information can be found at
www.drivemichiganforward.com
Action No. 2023-100(o)
Motion by: Commissioner Ramsey
Second by: Commissioner Emory
To adopt a resolution in support of Drive Safe Legislation.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
MOTION PASSES (5 to 0)
9. Public Hearings
9.a 2022 Consolidated Annual Performance Evaluation Report (CAPER)
Hearing - Community & Neighborhood Services
The CAPER is available on our website for citizen review and comment
period of
15 days from September 14 -October 6, 2023. A public Hearing is another
opportunity to comment about the Federal CDBG and HOME program
activities performed during the fiscal year 2022 (July 1,
2022 - June 30, 2023). Click on the link to view the CAPER
STAFF RECOMMENDATION: To conduct a Public Hearing for the 2022
CAPER review.
Community and Neighborhood Services Director, Sharonda Carson,
provided an overview of highlights of the 2022 Consolidated Annual
12
Performance Evaluation Report. Reporting on the CDBG and HOME
funds.
PUBLIC HEARING COMMENCED: No public comments were received.
Action No. 2023-101(a)
Motion by: Commissioner Ramsey
Second by: Commissioner St.Clair
To close the public hearing.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
MOTION PASSES (5 to 0)
10. Unfinished Business
11. New Business
11.a Rezoning of Properties in the Angel, McLaughlin, and Jackson Hill
Neighborhoods - Planning - REMOVED
Staff-initiated request to rezone all of the properties zoned R-1, R-2, R-3,
and RT in the McLaughlin, Angell, and Jackson Hill neighborhoods to
FBC-UR.
The Planning Commission held a public hearing on the case and voted 5-
0 in favor of denying the request.
11.b BSA Cloud Software - Information Technology/Finance Division
Staff is requesting authorization to enter into an agreement with BS&A
software to upgrade and migrate our BS&A Enterprise Resource Planning
(ERP) software to the cloud.
Since 2006, the City has been utilizing BS&A software for financial
management, payroll, utility management and billing, permitting and
inspections, assessing, human resource management, and more. The City
is at a point where our locally hosted BS&A solution needs to be
upgraded. BS&A offers an enhanced cloud-based solution. BS&A has
made it clear that they are focusing heavily on their cloud, and the on-
prem version will eventually be retired. They are no longer adding new
features to the on-prem solution. Knowing this, we would like to use this
13
upgrade point as an opportunity to move to the BS&A cloud, leveraging all
the latest features it provides. The BS&A cloud will improve the City’s
efficiencies across the board by providing an always-on/available
anywhere software solution.
BS&A software has a long list of municipalities (over 230) in line to be
migrated to the cloud. The project timeline for full migration and user
training is going to be 18-24 months. To enter into this agreement to
upgrade to the cloud, we are responsible for $30,800 this budget year, In
FY 24-25, we will budget $201,675 to cover the remaining upgrade costs
due at project completion. Starting in FY 25-26, BS&A Cloud yearly
support, maintenance, and hosting will cost $132,800, budgeted annually.
We have $10,000 budgeted in 23-24 for a BS&A upgrade. A budget
amendment will happen in the first quarter re-forecast adding the
additional $20,800 to cover the initial cost.
AMOUNT REQUESTED: $30,800
FUND OR ACCOUNT: 101-228-804
STAFF RECOMMENDATION: To authorize City staff to enter into an
agreement with BS&A software for a cloud-hosted ERP solution and
authorize the Mayor to sign.
Action No. 2023-102(b)
Motion by: Commissioner St.Clair
Second by: Commissioner Ramsey
To authorize City staff to enter into an agreement with BS&A software for
a cloud-hosted ERP solution and authorize the Mayor to sign.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
MOTION PASSES (5 to 0)
12. Any Other Business
City Manager Jonathan Seyferth advised that the company providing our
playground equipment is running a half-off grant sale and we will be looking to
replace some equipment and will not be utilizing our normal procurement
procedure.
14
Vice Mayor Willie German, Jr. commended the citizens for coming to the
meeting, advised that their input is valued, and encouraged them to continue to
come and be part of the process.
13. Public Comment on Non-Agenda items
Public comments were received.
14. Closed Session
14.a Pending Litigation
Action No. 2023-103(a)
Motion by: Commissioner St.Clair
Second by: Commissioner Ramsey
To go into closed session to consult with our attorneys regarding
settlement strategy in connection with Kathleen Bisard versus City of
Muskegon, Circuit Court for the County of Muskegon, Case No. 21-
002528-NI because an open meeting would have a detrimental financial
effect on the settlement position of the City of Muskegon.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
MOTION PASSES (5 to 0)
Motion by: Commissioner Ramsey
Second by: Commissioner St.Clair
Adopt the approved settlement as agreed upon.
Ayes: (5): Mayor Johnson, Commissioner St.Clair, Vice Mayor German,
Commissioner Ramsey, and Commissioner Emory
Absent (2): Commissioner Gorman, and Commissioner Hood
MOTION PASSES (5 to 0)
15. Adjournment
The City Commission meeting adjourned at 8:27 p.m.
15
Motion by: Commissioner Ramsey
Second by: Commissioner Emory
To adjourn.
MOTION PASSES
_________________________
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
16