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City of Muskegon
Work Session
Minutes
July 10, 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 Michael Ramsey
Commissioner Teresa Emory
Absent: Commissioner Eric Hood
Vice Mayor Willie German, Jr.
Staff Present: City Manager Jonathan Seyferth
City Clerk Ann Meisch
Deputy City Clerk Kimberly Young
1. Call to Order
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Mayor Johnson called the worksession meeting to order at 5:30 p.m. on Monday, July
10, 2023.
2. New Business
2.a DWRF & CWSRF Contract Summary - DPW
Staff presented the result of several bids recently received as a part of the FY23
DWRF (Drinking Water Revolving Fund) and CWSRF (Clean Water State Revolving
Fund) program, including the water and sewer debt fee implications and state
aid figures.
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In June of 2021, DPW staff and Prein & Newhof presented many projects as part
of the Project Plan updates that were submitted to EGLE upon Commission's
resolution of support. After determining which of those projects were most
viable, Commission then authorized design engineering contracts to prepare
plans, bidding documents and other necessary program items in October of
2022. The projects for which plans and other documents were prepared for are:
• The replacement of water main, sewer and roadways in the Bluffton
Neighborhood, including Wilcox, Thompson, Edgewater, Cherry, and
Walnut Streets.
• The replacement of water main, sewer and roadway in Morton Avenue
from Lincoln to Denmark.
• Repairs to the Harbour Towne and Edgewater lift stations (sanitary sewer
pump stations).
• The replacement of approximately $4 Million worth of lead service lines
in various locations.
Prein & Newhof completed the design work and bids were received on Thursday,
June 22, 2023 and Tuesday, June 27, 2023. A summary of the prices received as
shown in the table.
Project Award Price
Wilcox-Thompson $4,048,154.05
Morton Avenue $1,732,668.75
Lift Station Repairs $424,495.00
Lead Service Lines $4,467,787.86
Total Construction Cost $10,673,105.66
Grant & Aid Offered (>67%) $7,189,305.05
Cost to the City (Bonded) $3,483,800.61
At this time we also have a good idea of the grant and aid offered by the state to
the City under the programs. The sewer projects are expected to receive 50%
principal forgiveness and the water projects are expected to receive principal
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forgiveness and grants totaling 75% forgiveness. The remainder of the cost will
be bonded for 20 years at a well-below market rate of 1.875%
With the newly implemented water and sewer debt fees, the cost of these
projects to our customers can be directly estimated at this time. The table shows
the estimated debt fees that each project will require to be charged int he 2025
or 2026 fiscal year once the bond draws have reached their maximum and the
fees have been adjusted to cover the payments.
Project Water Sewer Total
Wilcox-Thompson $0.14 $0.33 $0.47
Morton Avenue $0.08 $0.09 $0.17
Lift Station Repairs N/A $0.07 $0.07
Lead Service Lines $0.34 N/A $0.34
Total Monthly Fee $0.56 $0.49 $1.05
The projects will have other costs that will be included in the bonds and will be
eligible for the same principle forgiveness and grants, such as the construction
engineering approved this past October. Those costs will be included in the bond
sales in the next couple months, and complete projects costs and estimated debt
service fees will be shared at that time once confirmed with the state finance
office and our consultants. We expect the debt service fees will be about 10%
higher than those shown here once all costs are accounted for.
The individual construction contracts are on the agenda for the July 11, 2023
meeting. This information is presented to allow the Commission to get a better
view of the total impact these programs will have on our system in 2024 and on
our customers over the life of the bond.
AMOUNT REQUESTED: N/A
FUND OR ACCOUNT: Water (590), Sewer (591), & Local Streets (203)
Discussion took place regarding the Drinking Water Revolving Fund & Clean
Water State Revolving Fund. Four items related to the contracts will be on the
agenda for consideration July 11, 2023.
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2.b Muskegon Social Equity Program - Planning
Staff is seeking approval to set this year's allocations for the Muskegon Social
Equity Program (MSEP)
The City received $622,000 from marihuana excise tax payments this year and
agreed to use 30% ($186,600) towards the MSEP. Staff is proposing to keep 40%
($74,640) allocated towards grants and 30% ($55,980) towards education and
outreach.
Staff is proposing to eliminate the funding for expungement clinics this year
(expungements are scheduled through the first quarter of 2024) and allocate the
remaining 30% ($55,980) towards neighborhood association grants created from
the Fair Housing settlement ($10,000) and public infrastructure improvements
($45,980) in the neighborhoods near the marihuana overlay district. These
improvements would include things such as alley paving, tree trimming, street
sign replacement, sidewalk improvements, etc.
Discussion took place regarding the proposed expenditure of the excise tax
payments being used in neighborhoods where there are marihuana businesses.
2.c Update on Short-Term Rentals - City Manager
Staff is providing an update on the issue of Short-term Rentals.
As the growth of short-term rental (STR) companies, such as AirBnB, and VRBO,
becomes more prevalent, many communities across the state are discussing
policies that would manage the popularity of this lodging opportunity. Local
units of government are seeking to establish reasonable rules and regulations
that strike the delicate balance of allowing short-term vacation rentals in ways
that keep all property owners in mind.
Earlier this year, the city received questions and comments from residents and
business owners interested in learning more about short-term rentals and its
impact in our community. A STR Community Workshop was held on May 16,
2023. The city has since created an online Short-Term Rentals link for residents
to remain engaged on this topic. It includes additional information and issue
updates, along with tools for the public to provide important feedback. A more
detailed discussion with the commission is expected later this Fall to assess
implementing new protocols around this issue.
The Community Engagement Division, Inspections Department (SafeBuilt), Public
Safety, and Economic Development all presented information regarding the
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impact of Short-Term Rentals. Deborah Santiago-Sweet covered the workshops
that were held by the City to inform residents as well as receive feedback from
residents about the current program. The inspections department (SafeBuilt)
provided an overview of the process to register as a Short-Term Rental as well as
how violations are addressed. Public safety reviewed the number of noise and
parking complaint that have been made since 2019 and how many were at STR
properties. Economic Development talked about the impact of Short-Term
rentals and how it relates to the recent housing study and the impact on housing
availability. An on-line portal is available for data collection and to report non-
compliance issues, etc. The non-emergency number to call with concerns is 722-
3524 and email address is [email protected] to report addresses
suspected of short or long term rentals that are not registered.
Discussion took place regarding the appetite for a moratorium. This will be
addressed again at a later date. There is general support for finding a solution to
some short term vs long term or short to long term rental transition, for
amendments to ordinances, etc.
3. Public Comment
Public comment was received.
4. Adjournment
The Work Session meeting adjourned at 8:14 p.m.
_________________________
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
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