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City of Muskegon
Work Session
Minutes
September 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
Commissioner Eric Hood
Vice Mayor Willie German, Jr.
Commissioner Michael Ramsey
Commissioner Teresa Emory
Staff Present: City Manager Jonathan Seyferth
City Clerk Ann Meisch
Deputy City Clerk Kimberly Young
2023-94
1. Call to Order
Mayor Ken Johnson called the Worksession meeting to order at 5:33 p.m.
2. New Business
2.a Remarks from the Mayor Regarding 9-11 Commemoration
Mayor Johnson attended a 9-11 Commemoration Event at the USS Silversides
Museum. He shared excerpts of the some of the remarks he gave at the event. A
moment of silence was observed. Never Forget.
2.b Former Employee Health Refund Calculation
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
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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 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 fund will cover
this cost.
City Manager Jonathan Seyferth provided an overview of this item. Multiple
departments and multiple funds are impacted by this overpayment and it has
taken some time to calculate all of the adjustments for those that have left the
employment of the City. This item will appear on the September 26, 2023
Agenda for consideration.
2.c Cost Recovery Ordinance 22 - Public Safety
Cost Recovery Ordinance Section 22, for Department of Public Safety.
This Chapter is adopted to enable the City of Muskegon to bill for and collect
“cost recovery charges”, as defined herein, from those receiving direct benefits
from fire department services, police department services, public works, and
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other emergency services provided by the City compared to the fee chart. It is
expressly the purpose of this Chapter to provide for and promote the safety and
welfare of the general public.
FUND OR ACCOUNT: 101-336-971
Chief Kozal spoke about the proposed cost recovery ordinance, explaining how it
would be beneficial to the city to help recover some of the cost of police, fire
and DPW services in certain situations, on a case-by case basis. Discussion took
place and some adjustments will be made to portions of the proposed
ordinance. This will be on the agenda at a later regular meeting for further
consideration.
2.d Amendment to Ride Muskegon Agreement - Manager's Office
City staff is working with Ride Muskegon, LLC on developing an amendment to
their operating agreement.
The final operating agreement was approved in April of 2022, but the owner was
unable to receive and place scooters into operation. With a new partner and the
ability to purchase scooters, the owner is requesting an amendment to the
agreement to do the following.
Reset the initial term for the duration of January 1, 20024 to December 31,
2024
Update the Non-Parking Zone Fee to $50 each occurrence
It is important to note that there is potential for the agreement to be in effect
for 25 years. During that time, Ride Muskegon, LLC has exclusive use of the
parking locations included in the attachments. No competitor can locate on city
property within 500 feet of any of the parking locations for the entire term of the
agreement.
Marked up versions of the approved documents are included in the packet.
Please note the highlighted sections and the comments provided.
Deputy City Manager, Leigh Ann Mikesell, reviewed proposed changes to the
Ride Muskegon Agreement. Changes are being requested after implementation
due to unforeseen circumstances discovered after implementation. Discussion
took place and the consensus of the commission is to terminate the agreement.
2.e Rezoning Update - Planning
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On Thursday, September 14, the Planning Commission will hear the following
case: Hearing, Case 2023-23: 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.
Mike Franzak, Planning Manager, explained that the McLaughlin, Angell, and
Jackson Hill Neighborhoods are being targeted for rezoning to Form Based Code
in order to expand the types of housing choices that can be built in those
neighborhoods.
Due to the amount of public outreach that has already been done in these
neighborhoods, they have been selected for potential rezoning. The Planning
Department is focused on finding housing options that fit in to these
neighborhoods and wants to work closely with them to move forward with infill
housing.
The proposed rezoning item is scheduled for a Public Hearing with the Planning
Commission on September 14, 2023.
More housing options help lead to more affordable housing. Discussion took
place regarding the proposed rezoning. Economic Development Director, Jake
Eckholm, also addressed the commission and provided more context supporting
the proposed zoning changes. Adopting Form Based Code zoning in the
McLaughlin, Angell, and Jackson Hill Neighborhoods would allow for duplex,
triplex, and quadplex units as well as the ability to build single family homes on
smaller lots as well as several other changes to allow more options for
construction. More discussion took place. This item will be considered on
September 26, 2023.
2.f Driver's Licenses for Undocumented Individuals - Manager's Office
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. The City
Commission is being asked to consider approving a resolution in support of this
legislation that can be shared with State Legislators.
Commissioner Ramsey provided an overview of the status of the ability for non-
citizens to obtain Michigan Driver's Licenses. He is seeking support for a
resolution of support for the Drive SAFE Act. The resolution will be on the
agenda at a later date.
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2.g Shoreline Drive Road Diet Study
DPW Director Dan VanderHeide provided an update, from an engineering
standpoint things are going well - public feedback has been coming in. We have
implemented lane closures and landscaping. The other two elements of the pilot
have not been implemented but work continues to get this done. Pilot will run
through the end of October.
Discussion took place regarding the elements of the pilot, FAQs are being
updated as more comments and questions come in from the public.
3. Public Comment
No public comment was received.
4. Adjournment
The Work Session meeting adjourned at 8:00.
_________________________
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
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