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CITY OF MUSKEGON
CITY COMMISSION MEETING
February 13, 2024 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
CALL TO ORDER
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, Michigan at 5:30 PM, Tuesday, February 13, 2024.
Reverend Mackenzie Jager, First Presbyterian Church of Muskegon, opened the
meeting with prayer, after which the Commission and public recited the Pledge
of Allegiance to the Flag.
ROLL CALL
Present: Mayor Ken Johnson, Vice Mayor Rebecca St. Clair, Commissioners
Katrina Kochin, Willie German, Jr., Destinee Keener, Jay Kilgo, and Rachel Gorman
(left at 6:00 p.m.). City Manager Jonathan Seyferth, City Attorney John Schrier,
City Clerk Ann Marie Meisch, and Deputy City Clerk Kimberly Young.
2024-16 HONORS, AWARDS, AND PRESENTATIONS
A. Big Red State Champion Football Honors Manager's Office
Mayor Johnson read and presented the resolution that was adopted on
December 12, 2023 recognizing the Muskegon High School Football Team for
winning the 2023 Division II State Championship.
B. Resolution Honoring and Celebrating Black History Month City Clerk
Commissioner German offered and presented a resolution honoring and
celebrating Black History Month.
Motion by Commissioner German, second by Commissioner Keener, to adopt the
Resolution Honoring and Celebrating Black History Month.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and German
Nays: None
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MOTION PASSES
2024-17 MOVED TO BEFORE CONSENT
B. Sale of 720 Leonard Avenue Manager's Office
Sale of 720 Leonard is removed from the Consent agenda. Commissioner Kilgo
removed himself from the dais as he has a stated conflict of interest. 720 Leonard
Avenue was constructed through the agreement with Rudy Briggs to construct
infill housing with ARPA funding. The offer is for full asking price. Commissioner
Kilgo has disclosed a conflict of interest as he represents the buyer. A letter
disclosing the conflict was provided to the Mayor Johnson on January 17, 2024
and has been published on the city's website and Facebook page.
STAFF RECOMMENDATION: To approve the purchase agreement for 720 Leonard
Avenue.
Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to approve the
purchase agreement for 720 Leonard Avenue.
ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Keener
Nays: None
MOTION PASSES
PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.
2024-18 CONSENT AGENDA
Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to approve the
consent agenda minus items D, E, F, H, L, M, and O.
ROLL VOTE: Ayes: Kilgo, Keener, German, Kochin, St.Clair, and Johnson
Nays: None
MOTION PASSES
A. Approval of Minutes City Clerk
To approve the minutes of the January 18, 2024 Special Meeting and the January
23, 2024 Regular Commission Meeting.
STAFF RECOMMENDATION: Approve the minutes.
C. Lumberjacks Build Out Arena
Seeking approval to construct updated proof of concept for construction of the
Lumberjacks space at Trinity Health Arena. Muskegon Lumberjacks Organization
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LLC, parent company of the USHL’s Muskegon Lumberjacks, have been approved
to construct a second story office suite above their existing players lounge and
coaches offices. The proposed space would be built into the necessary locker
room and supporting medical space to provide the Lumberjacks the best
amenities and continued success in player recruitment while also providing a
much needed presence and access to and from the arena concourse. All
construction would be fully funded by the Muskegon Lumberjacks Organization
LLC. Due to the nature of the cost to build, the Muskegon Lumberjacks
Organization LLC is requesting 2 additional 5yr renewal options added to their
shared use agreement. Attached is the proposed sixth amendment as well as a
general concept of construction. Since the approval on May 23, 2023...the proof
of concept has changed. The Lumberjacks are seeking a re-approval on the new
concept as they would like to begin construction as soon as April.
STAFF RECOMMENDATION: Approve new proof of concept for construction of the
Lumberjacks space at Trinity Health Arena.
G. Senior Municipal Funding FY24 Community & Neighborhood Services
To approve allocations of the Municipal Senior Millage funding to city programs
geared toward citizens who are 60 years of age, or older. An allocation of
$107,277.00 from the county of Muskegon FY24 Municipal Senior Millage funding is
budgeted for the following programs;
Home Repairs (CNS): $87,277.00
Senior Power of Produce: $ 20,000.00
STAFF RECOMMENDATION: To approve the budget proposed for City of Muskegon
programs utilizing FY24 Municipal Senior Millage Funds from the County of
Muskegon.
I. McCrea Baseball Field Fencing DPW- Parks
Staff requests permission to enter into a contract with Fence Consultants of West
Michigan for $51,100 for restoration of the McCrea Baseball Field. The city issued
an RFP on December 27 2023 seeking proposals from qualified contractors for
restoration of the ballfield, specifically fencing, at McCrea Park. A large factor in
the City deciding to restore this field is to support 2 local youth programs,
Muskegon Little League and Muskegon High School baseball. This will serve not
only as a recreation amenity in our park system, but also as a practice field for
Muskegon High School as well as the home field for the older age group (teens)
who play in Muskegon Little League.
Fence Consultants - $51,200
Nationwide Construction Group - $73,300
Freedom Construction - $122,000
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AMOUNT REQUESTED: $51,200
FUND OR ACCOUNT: 482 - State Grants (ARPA Funds)
STAFF RECOMMENDATION: Authorize staff to enter into a contract with Fence
Consultants of West Michigan for $51,500 for the installation of fencing for the
McCrea Park baseball field.
J. Civic Rec Agreement DPW- Parks
Staff is requesting to enter into a multi-year agreement with Civic Rec for
recreation software services. The cost for these services is $9,088 for the first year
(including startup services), with an annual recurring service fee of $5,250 with a
5% annual uplift. This also includes an agreement with their preferred payment
gateway, CSG Forte, which charges 3.20% per transaction.
AMOUNT REQUESTED: $9,088 for FY24; Annual Recurring Service Fee of $5,250
with a 5% uplift starting in year 2.
FUND OR ACCOUNT: 101-751-801
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with Civic
Rec and CSG Forte for parks and recreation management software.
K. Chicken Ordinance Planning
Request to amend the Animals section of the City Code of Ordinances to allow
residents to keep up to six chickens at their residence, under certain conditions.
The ordinance would allow residents to keep up to six female chickens (no
roosters) on a residential parcel that has at least 3,000 sf. The property must be
located in a zoning district that allows for single family houses, duplexes, triplexes
or quadplexes (Single Family Residential, RT, FBC-UR or FBC-LR). The chickens must
be kept in a coop, which shall be in a fenced or covered enclosure, and must
contain a feeding container. Chicken coops must be approved by the Zoning
Administrator through the development permit process.
STAFF RECOMMENDATION: Approve the amendments to the Animal ordinance to
allow for regulations on keeping chickens.
N. DDA Liquor License - Muskegon Brewing Company, 500 Adelaide Circle,
Floors 2&3 Planning
Muskegon Brewing Company is requesting a Downtown Development Authority
On-Premise Liquor License for the building at 500 Adelaide Circle (floors 2 &3). The
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Liquor Control Commission allows for additional liquor licenses within Downtown
Development Authority Districts under certain conditions. This request was
previously approved with an incorrect address, which was previously listed as 1204
W Western Ave.
STAFF RECOMMENDATION: To approve the Downtown Development Authority On-
Premise Liquor License for the building at 500 Adelaide Circle, Floors 2 & 3.
P. DWRF Bonding Capacity Notice Public Works
This Resolution authorizes the publication of a Notice of Intent relating to the City’s
Bonds to be issued through the DWSRF. The enclosed Resolution and Notice
indicate the City’s intent to issue Water Supply System Revenue Bonds in an
amount not to exceed $30,000,000 to pay the cost to acquire, construct,
furnish and equip improvements to the Water Supply System of the City (the
“System”), including distribution system improvements, replacement of water
mains and lead service lines and treatment plant improvements, together with all
related appurtenances and attachments (the“Project”).
STAFF RECOMMENDATION: Staff recommends that the Commission approve the
Resolution and Notice to indicate the City’s intent to issue Water Supply System
Revenue Bonds in an amount not to exceed $30,000,000 to pay the cost to
acquire, construct, furnish and equip improvements to the Water Supply System of
the City (the “System”).
2024-19 REMOVED FROM CONSENT
D. Employee Assistance Program & UFirst Employee Relations
Staff is requesting approval of Ulliance as the vendor that will be providing our
Employee Assistance Program services and UFirst services for public safety
personnel.
In August we received a non-renewal letter from our previous EAP provider Trinity
Health Work Life Services, that they are closing. I solicited three recommended
providers Encompass, Pine Rest, and Ulliance. I recommend Ulliance after
speaking with some organizations that use them, and the familiarity of our new
human resources analyst. Response time for services is always a concern, and
those I spoke with seemed satisfied.
AMOUNT REQUESTED: $17,000 we are currently budgeted for $10,000, I would
like to amend the budget to accommodate $17,000
FUND OR ACCOUNT: 101-269-809
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STAFF RECOMMENDATION: Approve the agreement with Ulliance for EAP and UFirst
services pending final legal review and authorize the Mayor and Clerk to sign.
Motion by Vice Mayor St.Clair, second by Commissioner German, to approve the
agreement with Ulliance for EAP and UFirst services pending final legal review and
authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, and German
Nays: None
MOTION PASSES
E. Poverty Exemption Updates Treasury
We last updated our Poverty Exemption Policy in 2022. Our assessor reviews the
policy annually and has suggested updates this year in order to comply with State
standards. It is recommended that we remove the section regarding the
reduction and phase out. Although we added that section in 2022 and modeled
it after another (larger) city, recent decisions indicate this section would not pass
the State audit. The State audits our policy every five years.
It has also been recommended that we add a line indicating it is necessary to file
State forms 5737, Application for MCL 211.7u Poverty Exemption, and 5739,
Affirmation of Ownership and Occupancy to Remain Exempt by Reason of
Poverty, each year. The State has created these standardized forms to replace
the old forms, which were created by each municipality. A document indicating
the recommended changes is in the packet.
STAFF RECOMMENDATION: Approve the recommended changes to the attached
Poverty Exemption Policy.
Motion by Commissioner Kilgo, second by Commissioner Keener, to approve the
recommended changes to the attached Poverty Exemption Policy.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Kochin, and St.Clair
Nays: None
MOTION PASSES
F. Frosty Boyz 420 Party-Cannabis Event DPW- Parks and Recreation
Options Health Group LLC has applied to have a cannabis event at 2119 Lemuel
St on 4/20/2024. All cannabis events must be approved by commission before the
City Clerk can confirm with the CRA the local municipality is aware of the event
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and approves the event.
The Options Health Group LLC has plans for a new cannabis event on 4/20/2024
at 2119 Lemuel St (5 acres of land next to Grassy Knoll Dispensary). The event
would feature artists, performers, 9 cannabis vendors, a consumption lounge, 20
art and craft vendors, and 3 food trucks. A meeting was held with the event
organizers, Public Works staff, Police Department, and Fire Department to review
all requirements and address any concerns. There have been small events held
on this property previously with no complaints from Public Safety. Since cannabis is
being sold at this event, Commission approval is required. Included is the full
application and site map.
STAFF RECOMMENDATION: Approve the cannabis event for Options Health Group
LLC at 2119 Lemuel St on 4/20/2024.
Motion by Commissioner Kilgo, second by Commissioner Keener, to approve the
cannabis event for Options Health Group LLC at 2119 Lemuel St on 4/20/2024.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, and Kochin
Nays: None
MOTION PASSES
H. Kruse Park Stairs DPW- Parks
Staff is requesting permission to enter into a contract with North Shore Property
Solutions for $38,500 for construction of stairs at Kruse Park.
The previous stairs and ramp at Kruse Park were damaged during the Lake
Michigan high water of 2020, with the cost of replacement being estimated at
$1,025,000. The Disability Network of West Michigan has been consulted regarding
accessibility at Kruse Park, and agrees that a staircase is more accessible than no
structure at all. Staff also have heard concerns about degradation of the dunes
due to the current method of access. It is important to note that these stairs are
not the final solution to access the beach at Kruse Park, but they are an
improvement over the current lack of formal access. Staff continues to work with
disability advocates and funding agencies to improve access to the beach at
Kruse Park.
On December 20, 2023 the Parks & Recreation Advisory Committee unanimously
voted to seek proposals for a staircase to replace the beach access at Kruse Park.
The city issued an RFP on December 27 2023 seeking proposals from qualified
contractors for construction of these stairs at Kruse Park. Out of the 3 proposals
received, North Shore Property Solutions had the lowest cost as well as familiarity
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with building staircases on dunes. Specifically, dunes that lead to beaches that
have been effected by high waters. The bid tab is shown below.
North Shore Property Solutions - $38,500
Quest Design Build - $53,519
Freedom Construction - $54,677
AMOUNT REQUESTED: $38,500
FUND OR ACCOUNT: 482 - State Grants (ARPA Funds)
STAFF RECOMMENDATION: Authorize staff to enter into a contract with Northshore
Property Solutions for $38,500 for the construction of Kruse Park stairs.
Motion by Vice Mayor St.Clair, second by Commissioner Keener, to authorize staff
to enter into a contract with Northshore Property Solutions for $38,500 for the
construction of Kruse Park stairs.
ROLL VOTE: Ayes: German, Kochin, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES
L. Social District permit for Rake Beer Project Community Engagement
The City Commission must recommend approval of the Michigan Liquor Control
Commission permits of participating licensed establishments in the Downtown
Muskegon Social District. With the establishment of the Downtown Muskegon
Social District, participating licensed establishments must receive a Social District
permit from the Michigan Liquor Control Commission. The MLCC must first receive
a recommendation for approval from the City Commission before granting the
permits. Rake Beer Project LLC has been a social district participating licensed
establishment at its former location at 794 Pine Street. With the move to 500 W.
Western Avenue, Suite 200, Rake must receive a new social district permit with its
new MLCC license for that location. This item corrects the business' address from
city commission action on May 9, 2023.
STAFF RECOMMENDATION: Approve the resolution recommending Michigan Liquor
Control Commission approval of Social District permit in the Downtown Muskegon
Social District for Rake Beer Project LLC and to direct the City Clerk to certify the
City Commission action with the MLCC.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the
resolution recommending Michigan Liquor Control Commission approval of Social
District permit in the Downtown Muskegon Social District for Rake Beer Project LLC
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and to direct the City Clerk to certify the City Commission action with the MLCC.
ROLL VOTE: Ayes: Keener, German, Kochin, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
M. Allocation of remaining ARPA Community Grant Funds Manager's Office
Staff is requesting approval to redirect $150,000 to additional applicants of the
City's ARPA Community Grant Program who were not previously selected for
funding in late 2023.
Background
2/14/23: City Commission authorized $1.6M from the City’s allocation of American
Rescue Plan Act (ARPA) funds to establish the City's ARPA Community Grant
Program. Eligible applicants included non-profit orgs, small businesses and each
neighborhood association.
3/1/23 - 3/31/23: Grant application period open; 60 applications received.
April 2023 - May 2023: Review of applications and established ARPA Community
Grant Review Committee. Six members included: Lawrence Baker (Ward 1), Leon
Howard (Ward 2), Jennifer Sanocki (Ward 3), Nina Leask (Ward 4), Jonathan
Seyferth (City Manager), and Sharonda Carson (Director, Community and
Neighborhood Services). Two additional advisors – Community Foundation and
United Way
June 2023: The Review Committee held four public meetings at City Hall on
6/5/23, 6/7/23, 6/22/23 and 6/29/23. A multistep scoring process was used to
review and evaluate all applications. The responses to 9 questions on the
application served as the evaluation criteria on which to base the scores. Projects
were ranked by the cumulative average of each committee members scores.
The Review Committee recommended (22) project proposals for the
Commission’s consideration. On August 2, 2023, the Commission approved (21)
proposals for funding. At that meeting, a recommended proposal from Pioneer
Resources in the amount of $150,000 was removed due to conflict of interest
documentation involving Commissioner Gorman which had not yet been
resolved. Upon resolution of the matter, the Pioneer Resources project was
brought back to the Commission for unanimous consideration. The proposal did
not ultimately receive enough support and was subsequently denied. Thus,
$150,000 was then made available to be redirected to other applicants.
As of 12/31/23, the remaining balance of uncommitted funds from the city's ARPA
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(American Rescue Plan Act) allocation ($22,881,894) is approximately $435,133.40.
(Public Safety has an action item later in the meeting allocating this balance to
cover a portion of the cost for a fire truck.)
AMOUNT REQUESTED: $150,000
FUND OR ACCOUNT: 101-901-982-092112
STAFF RECOMMENDATION: Authorize the distribution of $150,000, from the City's
ARPA Community Grant Fund, to the following entities - $25,000 to Mediation &
Restorative Services; $10,000 to HBCU Club of Muskegon LLC; $50,000 to Forrest Tax
& Accounting Services; and $65,000 to Muskegon Retirement Apts, Inc, dab
Jefferson Towers.
Motion by Vice Mayor St.Clair, second by Commissioner Keener, to authorize the
distribution of $150,000, from the City's ARPA Community Grant Fund, to the
following entities - $25,000 to Mediation & Restorative Services; $10,000 to HBCU
Club of Muskegon LLC; $50,000 to Forrest Tax & Accounting Services; and $65,000
to Muskegon Retirement Apts, Inc, dba Jefferson Towers.
ROLL VOTE: Ayes: Kilgo, Keener, German, Kochin, St.Clair, Johnson
Nays:
MOTION PASSES
O. Allocate City ARPA Funds for New Fire Truck Public Safety
The city currently has $435,133.40 in uncommitted ARPA funds. The Fire
Department is requesting to use the remaining ARPA funds to go towards a new
fire truck which totals $972,276.00. At the 11/14/23 commission meeting, the
commission approved for the Fire Department to enter into a purchase
agreement with CSI Emergency Apparatus LLC for a 2023 Spartan Star pumper for
$972,276.00. This pumper will replace Engine 25, a 2010 Spartan Metro Star with
137,043 miles. The mandatory replacement for frontline fire apparatus is 15 years.
The expected delivery date of this purchase is approximately 600 days or June of
2025.
AMOUNT REQUESTED: $435,133.40
FUND OR ACCOUNT: State Fund #482
STAFF RECOMMENDATION: Allocate the remaining city ARPA funds of $435,133.40
to the purchase of a 2023 Spartan Star from CSI Emergency Apparatus LLC.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to allocate the
remaining city ARPA funds of $435,133.40 to the purchase of a 2023 Spartan Star
from CSI Emergency Apparatus LLC.
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ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Kochin, and St.Clair
Nays: None
MOTION PASSES
2024-20 UNFINISHED BUSINESS
A. Acquisition of Vacant Lot at 748 Catherine for Infill Housing from Muskegon
Land Bank - Tabled on 1/23/2024 Economic Development
This lot recently had a grant funded demolition of a derelict home by the
Muskegon County Land Bank. Rather than see it sold privately to expand a lawn
or sit vacant and sporadically maintained, we would like to proactively acquire it
for future phases of City-led infill housing. We have recently been working to
strengthen ties with the Muskegon County Land Bank Authority and as a result of
this we have a great system in place where we are notified of potential lots that
may benefit our urgent housing need. This lot was recently added to the inventory
for the Land Bank after a long-vacant home was demolished using State Land
Bank grant dollars. As we finish out ARPA Infill Housing we will be making
recommendations on continued builds as part of a broader housing strategy, and
continuing our budgeted property acquisition will benefit all aspects of that.
AMOUNT REQUESTED: $3500
FUND OR ACCOUNT: Public Improvement Fund
STAFF RECOMMENDATION: Approve the purchase of the vacant lot at 748
Catherine for the sum of $3,500 as presented, and to direct staff to close on the
property.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the
purchase of the vacant lot at 748 Catherine for the sum of $3,500 as presented,
and to direct staff to close on the property.
ROLL VOTE: Ayes: None
Nays: St.Clair, Johnson, Kilgo, Keener, German, and Kochin
MOTION FAILS
2024-21 NEW BUSINESS
A. Hackley Public Library Agreement Updates Manager's Office
As Hackely Public Library continues to evolve and separate itself from Muskegon
Public Schools, there are several agreements the City was originally a party to,
which need to be amended with City approval. The City has no financial interest
in any of these transactions.
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Hackley Public Library (HPL) was established pursuant to a District Library
Agreement between the District and the City of Muskegon, which is attached. The
District Library Agreement requires the District to lease the Hackley Public Library
and Torrent House to HPL and to make certain annual contributions to HPL. The
school district is looking to transfer ownership of the Torrent House to HPL (the
current user). But, because the District Library Agreement is between the District
and the City, we also need City approval to acknowledge that the City agrees
with the property transfer. An amendment to the District Library Agreement
prepared by the District and the Library is attached. Because the District Library
Establishment Act requires such amendments to be approved by the State
Librarian, HPL has also forwarded the amendment to the State Librarian for
preliminary review.
In addition, the City of Muskegon previously held title to the Torrent House, and a
deed in the chain of title grants the City of Muskegon a right of first refusal to
purchase the property if the then-current owner “intends to transfer ownership to
another than a not for profit entity.” HPL is a “not-for-profit entity” as used in the
deed, and, therefore, the property transfer from the District to HPL does not trigger
the City’s right of first refusal. However, the District and HPL request that the City
acknowledge the right of first refusal is not triggered by signing the attached
Memorandum of Understanding.
It should be noted that the City's first right of refusal to the property will be
maintained with this property transfer. So, if, in the future, HPL were to look to sell
the property to an entity other than a non-profit, the City would still have its right of
first refusal. This is primarily an acknowledgment that this property transfer doesn't
trigger the first right of refusal.
STAFF RECOMMENDATION: Approve the agreements as presented and authorize
the City Manager to sign.
Motion by Commissioner Kochin, second by Commissioner German, to approve
the agreements as presented and authorize the City Manager to sign.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, and German
Nays: None
MOTION PASSES
PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.
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ADJOURNMENT
Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to adjourn at 7:55
p.m.
MOTION PASSES
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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