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City of Muskegon
City Commission Meeting
Minutes
November 28, 2023, 5:30 pm
Muskegon City Hall
933 Terrace Street, Muskegon, MI 49440
Present: Mayor Ken Johnson
Commissioner Rachel Gorman
Commissioner Rebecca St.Clair
Commissioner Eric Hood
Vice Mayor Willie German, Jr.
Commissioner Teresa Emory
Absent: Commissioner Michael Ramsey
Staff Present: City Manager Jonathan Seyferth
City Clerk Ann Meisch
City Attorney John Schrier
1. Call To Order
Mayor Johnson called the City Commission meeting to order at 5:30 p.m.
2. Prayer
Pastor Adam Dollar, Evanston Avenue 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
5. Honors, Awards, and Presentations
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5.a Recognition of Outgoing Commissioners - 87th District State
Representative Will Snyder
87th District State Representative Will Snyder presented a Special Tribute
to outgoing City Commissioners Teresa Emory, Eric Hood, and Michael
Ramsey, in recognition of their service to the City of Muskegon.
6. Public Comment on Agenda Items
No public comments were received.
7. Consent Agenda
Action No. 2023-121
Motion by: Commissioner St.Clair
Second by: Commissioner Hood
To accept the consent agenda as presented, minus item 7c and 7j, with the
understanding that item 7d has been moved to New Business for discussion
only.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair,
Commissioner Hood, Vice Mayor German, and Commissioner Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
7.a Approval of Minutes - City Clerk
To approve the minutes of the November 13, 2023 Worksession and
November 14, 2023 Regular Meeting.
STAFF RECOMMENDATION: To approve the minutes.
7.b Cellular Water Tower Lease Negotiations - Water Department
Staff requests authorization to enter into an agreement with Maralat
Communications to authorize them as the City’s exclusive lease
negotiation consultant for three cellular antenna leases on the City’s water
towers.
In the past, City staff has negotiated leases with cellular companies that
allow them to place antennas on our water towers for a fee. Based on the
recent positive experience with Maralat Communications, staff reached
out and solicited a proposal from them to act as the City’s exclusive lease
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negotiation consultant during three ongoing lease negotiations. While
staff has undoubtedly done a good job in the past, both Maralat and staff
are confident that a professional lease negotiator will secure the best
market rates available and increase the overall fees the City will be paid
compared to staff-negotiated leases.
Although the agreement refers to four locations, two towers are under one
lease so only three leases are proposed for negotiation at this time. The
fees are based on the terms Maralat is able to obtain for the City, so the
City and Maralat both benefit from strong negotiation. Staff has estimated
the fees (based on 5% of the total fees negotiated in the first term of each
lease) at $49,470 based on our current lease rates, but the actual fees will
be based on the new lease rates and are capped at $75,000 (based on
the negotiation of three leases each capped at $25,000 in fees). While
this is an unbudgeted expense, staff and Maralat are confident the cost
will be covered by the additional rates that will be negotiated compared to
the staff-negotiated leases.
AMOUNT REQUESTED: $75,000 (Estimated at $49,470 bu capped at
$75,000)
FUND OR ACCOUNT: 590 Water
STAFF RECOMMENDATION: To authorize staff to enter into an
agreement with Maralat Communications to authorize them as the City’s
exclusive lease negotiation consultant for three cellular antenna leases on
the City’s water towers.
7.e Janitorial Services - DPW
Staff is requesting authorization to approve a janitorial contract with
Professional Building Services to provide services at City Hall, Public
Works and Water Filtration Plant buildings and a janitorial contract with
Goodwill Industries to provide services at Trinity Health Arena.
Staff solicited bids for a new three-year janitorial contract with fourth- and
fifth-year options for City Hall, Public Service Building, Water Filtration
Plant, Trinity Health Arena for events and Trinity Health Arena for locker
room cleanings. The three-year bid total for each building are as follows:
City Hall
• Goodwill Industries-$177,520.09
• Reliant Professional Cleaning-$347,845.00
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• Detail XPerts-$141,000.00
• Professional Building Services-$137,280.00
• Cleaning by Francisca-$945,360.00
Public Service Building
• Goodwill Industries-$104,790.13
• Reliant Professional Cleaning-$117,294.00
• Detail XPerts-$59,500.00
• Professional Building Services-$64,350.00
• Cleaning by Francisca-$641,520.00
Water Filtration Plant
• Goodwill Industries-$34,184.86
• Detail XPerts-$9,200.00
• Professional Building Services-$25,500.00
• Cleaning by Francisca-$460,440.00
Trinity Health Arena (Assuming 45 Events per year)
• Goodwill Industries-$464,171.85
• Cleaning by Francisca-$238,950.00
Trinity Health Arena (Per Locker Room Cleaning 1st year bid)
• Goodwill Industries-$188.00
• Cleaning by Francisca-$125.00
Staff is recommending to award the janitorial contract to Professional
Building Services for City Hall, Public Service Building and the Water
Filtration Plant. Professional is the second lowest bidder, they are a local
company and have positive references.
Staff is recommending to award the janitorial contract to Goodwill
Industries for Trinity Health Arena. Goodwill has experience cleaning the
Arena and has proven they are qualified to complete the work.
AMOUNT REQUESTED: $691,301.85 (3 YEARS) *Additional Budget of
$14,189.92 for FY 23/24
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FUND OR ACCOUNT: 101-265-801, 642-441-801, 591-558-801, 254-
906-081
STAFF RECOMMENDATION: To authorize staff to award the City Hall,
Public Service Building and Water Filtration Plan janitorial contract to
Professional Building Services for 3 years with optional 4th and 5th year at
$77,980 per year and award the Trinity Health Arena janitorial contract to
Goodwill Industries for 3 years.
7.f Sale of 730 Leonard Avenue - Manager's Office
Staff is seeking approval of the sale of 730 Leonard Avenue. 730 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 seller concession of $4,950.
STAFF RECOMMENDATION: To approve the purchase agreement for
730 Leonard Avenue.
7.g Sale of 750 Leonard Avenue - Manager's Office
Staff is seeking approval of the sale of 750 Leonard Avenue. 750 Leonard
Avenue was constructed through the agreement with Rudy Briggs to
construct infill housing with ARPA funding. The offer is for full asking
price.
STAFF RECOMMENDATION: To approve the purchase agreement for
750 Leonard Avenue.
7.h Sale of 1271 Spring Street - Manager's Office
Staff is seeking approval of the sale of 1271 Spring Street. 1271 Spring
Street was constructed through the agreement with Dave Dusendang to
construct infill housing with ARPA funding. The offer is for $4,000 over
asking price with the overage covering the cost of central air. This results
in a full price offer.
STAFF RECOMMENDATION: To approve the purchase agreement for
1271 Spring Street.
7.i Former Employee Health Refund Calculation - City Manager
This is a clarification action from our Sept. 26, 2023 meeting where the
Commission approved repayment of overpayments by former team
members for health insurance. The clarification is, that the repayments go
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back to January 1, 2020 (this is consistent with what was done for current
employees).
(summary from original memo)
Traditionally (and per all five union contracts), employees paid 10% of
their health benefits (after 2017, this included three components: Health
Insurance, Co-insurance, and Deductibles). An error in the calculation
occurred at some point, 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 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 percentage of
actual monthly premiums and a percentage of City Paid Benefits (co-
insurance & deductibles)). Before 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 (Jan. 1, 2020 through early 2023).
The administration is now asking the Commission to consider
reimbursement of the overpayment to former employees who left the City
between January 1, 2020, and the end of 2022 and who also overpaid
insurance premiums.
During that period, 58 former team members 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 for the period from January
1, 2020, through January 2023.
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7.c PFAS Settlement - Water Filtration
Staff requests concurrence on the decision to remain a part of class-action
lawsuits against 3M and DuPont.
The class action suits and associated settlement is for contaminated
drinking water only (not PFAS contamination in the environment). There
are two separate settlements, one from 3M and one from Dupont. The
settlement is divided into phases, and we qualify for money allocated in
the first phase due to PFAS detections in our source water prior to June
22, 2023. Opt-out deadlines for both settlements are in early December of
this year.
A score will be calculated to determine how the funds will be allocated.
The score will include the size of the source (production capacity and
actual capacity) and the levels of PFAS detected. Our source water
PFAS detections have mostly been in the range of 0-3 ppt, below the
current and proposed maximum contaminant levels (MCLs) for
drinking water. We did have one abnormally high source water sample
from April 2022: PFOA 13 ppt (Michigan MCL 8 ppt, EPA proposed MCL 4
ppt) and PFOS 4 ppt (Michigan MCL 16 ppt, EPA proposed 4 ppt). This
should work in our favor, but to what extent is hard to say. Money will also
be set aside for additional claims until 2030 if our source was to exceed an
MCL. This violation of an MCL could be due to either an increase in PFAS
levels or a decrease in the MCL. There are no conditions on how the
funds need to be spent, however we will not know the amount until after
the opt-out deadline.
The City attorney has recommended we remain in the settlement based
on a very low chance of receiving more funds than the settlement if we
were to opt out.
More information is available at the website:
https://www.pfaswatersettlement.com/
FUND OR ACCOUNT: 591 (Water)
STAFF RECOMMENDATION: That the City of Muskegon remain a part of
class-action lawsuits against 3M and DuPont.
Action No. 2023-122(c)
Motion by: Commissioner St.Clair
Second by: Commissioner Hood
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That the City of Muskegon remain a part of class-action lawsuits against
3M and DuPont.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
7.j Property Exchange for LIHTC Projects with Grace Community, LLC -
Development Services
In order to move forward on Berkshire Spring Street from General Capital
and Allen Crossing/Amity Commons from Spire Development, staff
recommends the proposed property exchange in the attached letter to
remedy a reverter clause discovered during title work.
The City sold parcels at 159 Amity Avenue, 158 Allen Avenue, 923 Jay
Street, 201 Jay Street, and 974 Spring Street to Grace Community, LLC
with the intention of their developing a commercial/retail complex onsite.
The quit claim deed includes a reverter clause if complex was not
completed in 3 years, which passed in July of 2022. Since then, the city
has identified the sites as ideal for LIHTC development and has standing
approved agreements with both Spire Development as well as General
Capital for a proposed set of 4 buildings that include nearly 150 affordable
apartment units.
For these 3 LIHTC projects that have been previously approved by city
commission to move forward, the developers must demonstrate site
control to MSHDA. These deed reversions result in Grace Community,
LLC being unable to convey small portions of the total development site to
Spire and General Capital thereby jeopardizing 3 of the 5 Low Income
Housing Tax Credit developments we have been working on. Upon finding
this out from representatives of Grace Community, staff worked with them
on a mutually beneficial solution.
Essentially, pending appropriate title work and a third-party appraisal of all
lots staff is proposing an exchange of properties with Grace Community,
LLC reflected in the attached map, where Grace Community keeps the
properties the city previously sold them for roughly $11,5000 in 2019
minus 201 Jay Street which we take back, and gives the City of Muskegon
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970 Jay, 973 Jay, 200 East Apple, 212 East Apple, and 218 East Apple.
This results in both parties ending up with contiguous properties, and
preserves the property necessary for all approved LIHTC proposals.
STAFF RECOMMENDATION: To approve the exchange of 159 Amity
Avenue, 158 Allen Avenue, 923 Jay Street, and 974 Spring Street for 970
Jay Street, 974 Jay Street, 200 East Apple, 212 East Apple, and 218 East
Apple as presented, pending a third party appraisal of all sites and
completed title work prior to closing, and to authorize the mayor and clerk
to sign.
Action No. 2023-122(j)
Motion by: Commissioner St.Clair
Second by: Commissioner Emory
To approve the exchange of 159 Amity Avenue, 158 Allen Avenue, 923
Jay Street, and 974 Spring Street for 970 Jay Street, 974 Jay Street, 200
East Apple, 212 East Apple, and 218 East Apple as presented, pending a
third party appraisal of all sites and completed title work prior to closing,
and to authorize the mayor and clerk to sign.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
8. Public Hearings
9. Unfinished Business
10. New Business
10.a Precinct Consolidation/Changes - City Clerk
The law was recently changed allowing precincts sizes to change from
2,999 voters to 4,999 voters. This in conjunction with nine days of early
voting, the usage of our voting trailer, and the expansion of absentee
voting gives the City the opportunity to reduce the number of precincts
needed in the City.
Staff proposes to do the following:
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Ward 1: Combine Precinct 1 (MCC) and Precinct 2 (Bethesda Church)
and move to Central Assembly of God that has a large gym building
separate from the church and an expansive parking lot. We also
recommend combining Precincts 3 (Central Assembly of God) and 4
(Central Assembly of God) that are already located in this building. There
are two sides to the building that can comfortably accommodate both
precincts.
Ward 2: Move voters that reside in Precinct 6 (City Hall) from Wood
Street, Apple, Forest, Getty, Evanston, McLaughlin, and Chestnut
(approximately 361 voters) to Precinct 5 (Smith Ryerson). Combine
Precincts 6 (City Hall) and Precinct 7 (City Hall).
Ward 3: Eventually we would like to combine Precincts 8 (DPW) and 9
(Muskegon High School) after completion of construction and move
Precinct 10 (Muskegon Farmers Market) to Boys and Girls Club upon
completion of renovations.
Ward 4: Combine Precincts 11 (Celebration Community Church) and
Precinct 12 (McGraft Park) and move to Celebration Community Church
that has a large open space and plenty of parking. We also recommend
combining Precincts 13 (Lakeside Baptist Church) and 14 (Great Lakes
Museum) and move to Great Lakes Museum.
STAFF RECOMMENDATION: To recommend to the Election Commission
to combine Precinct 1 (MCC) and Precinct 2 (Bethesda Church) and move
to Central Assembly of God, combine Precincts 3 (Central Assembly of
God) and 4 (Central Assembly of God), move voters that reside in the
following boundaries of Precinct 6 (City Hall) from Wood Street, Apple,
Forest, Getty, Evanston, McLaughlin, and Chestnut (approximately 361
voters) to Precinct 5 (Smith Ryerson), combine Precincts 6 (City Hall) and
Precinct 7 (City Hall), combine Precincts 11 (Celebration Community
Church) and Precinct 12 (McGraft Park) and move to Celebration
Community Church, combine Precincts 13 (Lakeside Baptist Church) and
14 (Great Lakes Museum) and move to Great Lakes Museum.
Action No. 2023-123(a)
Motion by: Commissioner Emory
Second by: Vice Mayor German
To recommend to the Election Commission to combine Precinct 1 (MCC)
and Precinct 2 (Bethesda Church) and move to Central Assembly of God,
combine Precincts 3 (Central Assembly of God) and 4 (Central Assembly
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of God), move voters that reside in the following boundaries of Precinct 6
(City Hall) from Wood Street, Apple, Forest, Getty, Evanston, McLaughlin,
and Chestnut (approximately 361 voters) to Precinct 5 (Smith Ryerson),
combine Precincts 6 (City Hall) and Precinct 7 (City Hall), combine
Precincts 11 (Celebration Community Church) and Precinct 12 (McGraft
Park) and move to Celebration Community Church, combine Precincts 13
(Lakeside Baptist Church) and 14 (Great Lakes Museum) and move to
Great Lakes Museum.
Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
St.Clair, Commissioner Hood, Vice Mayor German, and Commissioner
Emory
Absent (1): Commissioner Ramsey
MOTION PASSES (6 to 0)
7.d Special Event Policy - Public Works
Staff is seeking approval to the proposed changes to the Special Event
Policy. Included is the Special Event Policy with proposed changes.
Changes include:
• Applications need to be submitted at least 45 days in advance to
allow enough time for staff to review and approve event requests.
Then staff communicates to the event conditions that must be met
for the event to be held. Many of these conditions must be two
weeks before the event is held.
• Application fee changes to simplify the fee structure.
• Providing food vendor requirements in policy as suggested by the
Fire Marshal.
• Increasing the footprint of who is notified when a street is closed.
• Begin to offer card board trash bins for events to use so events
have an option of a trash receptacle they could pick up or have
delivered for free.
• Increase fee for trash cans/bins to cover costs.
• Picnic Tables will no longer be rented and delivered by staff. A
group of tables will be available for events to pick up and return for
free.
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• No longer offer an hourly rate to have a liquor license in Hackley
Park. Only one event can occur in the park per day.
• Remove fee for using bike and walking paths. Using the bike path
is encouraged versus using a street.
• Change Pere Marquette Use fees to be year-round and based on
area zones instead of number of attendees. Basing the fees on
attendees is difficult to determine and can change year to year.
Zone based fees will help events know their fees when applying
and can encourage events to move to a less populated area of the
beach.
• Change Pere Marquette user fees to daily fees and have different
fees for weekends vs weekdays. Daily fees can encourage events
to have a faster setup and tear down period. Lower weekday fees
can encourage events to move to a weekday to save money and
have less fees during their setup period.
• Increase parking fees in lots around Pere Marquette. The impact of
events at the beach is significant for availability of parking. As many
spaces as possible should be left available to residents and
visitors.
STAFF RECOMMENDATION: To approve changes to the Special Event
Policy.
Discussion took place regarding the proposed Special Event Policy
Changes and this item will be present to the Commission for further
consideration on December 12, 2023.
11. Any Other Business
Vice Mayor German raised the question of amending the application for Social
Equity funds to allow applicants that have been convicted of certain felonies to
apply for funds. Discussion took place and staff will have something for the
Commission to consider at the Worksession meeting in January 2024.
Mayor Johnson recognized city staff for their efforts in getting Hackley Park
decorated and for the Lighting of the Christmas Tree Event that took place
recently.
12. Public Comment on Non-Agenda items
Public comments were received.
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13. Closed Session
14. Adjournment
The City Commission meeting adjourned at 6:45 p.m.
_________________________
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
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