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CITY OF MUSKEGON
CITY COMMISSION MEETING
MARCH 8, 2022 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, March 8, 2022.
Pastor Tom Beetham, Lakeside Baptist Church, opened the meeting with prayer,
after which the Commission and public recited the Pledge of Allegiance to the
Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Ken Johnson, Vice Mayor Willie German, Jr., Commissioners,
Teresa Emory, Rachel Gorman, Rebecca St.Clair, Eric Hood, and Michael
Ramsey, Deputy City Manager LeighAnn Mikesell, City Attorney John Schrier,
and City Clerk Ann Meisch.
HONORS, AWARDS, AND PRESENTATIONS:
Muskegon County Bicycling Coalition
Ray McLeod, President of the Muskegon County Bicycling Coalition, spoke to
the City Commission. He and his wife started a couple of bicycling groups for all
types of cyclists. The group advocates by offering assistance with “passing”
ordinances and providing input on 5-year plans to cities in the area. They
appreciate the Lakeshore Trail and the Laketon Trail. The Coalition supports the
Lakeshore/Laketon Connector Trail that is on the agenda for a vote tonight. The
trails are also used by people that don’t consider themselves cyclists but do use
the trails and use their bikes as everyday transportation. They will also benefit
from this infrastructure.
PUBLIC COMMENT ON AGENDA ITEMS: Public comments were received.
2022-20 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the February 7, 2022
Worksession Meeting and the February 8, 2022 Regular Meeting.
STAFF RECOMMENDATION: To approve the minutes.
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B. Water Intake System Cleaning & Inspection Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to contract with Lindahl
Marine to clean and inspect the water intake system at the Water Filtration
Plant.
The Water Filtration Plant intake system permits the flow of water from Lake
Michigan into the water plant for treatment. This system includes a 60” diameter
pipeline that originates at the Water Plant and terminates at the bottom of Lake
Michigan, where it is protected with a crib structure.
The project is divided into two parts. The first part is an inspection using an ROV
to verify the integrity of over 5,000 feet of pipe. The second part involves a
professional diver performing an inspection and cleaning of the crib structure.
Growth of mussels on the crib structure is common, and this growth can
eventually lead to a reduction in water flow. The diver will also remove sediment
and debris from the bottom of a portion of the pipe, which helps maintain
adequate water flow and also improves water quality. The intake system was
last inspected in 2017.
Sealed bids were accepted until February 15, 2022. Three bids were received,
although one did not meet the requirements of the RFP. Staff recommends that
Lindahl Marine be awarded the contract as the lowest bidder with a proposal
that meets the requirements of the RFP. This project was budgeted as part of the
FY 2021-2022 capital improvements projects at the Water Filtration Plant.
Contractor Price
Lindahl Marine $49,000.00
Great Lakes Dock & Materials $81,287.00
AMOUNT REQUESTED: $49,000 AMOUNT BUDGETED: $75,000
FUND OR ACCOUNT: 591-92034-5346
STAFF RECOMMENDATION: Authorize staff to contract with Lindahl Marine in
the amount of $49,000 for services related to the cleaning and inspection of the
water intake system at the Water Filtration Plant.
C. Liquid Sodium Hypochlorite – Changer Order #005 Public Works –
Filtration
SUMMARY OF REQUEST: Staff is requesting authorization to accept the
temporary price increase of liquid sodium hypochlorite from Alexander
Chemical.
The Water Filtration Plan uses sodium hypochlorite in the production of drinking
water. The application of sodium hypochlorite is one of several crucial processes
used to inactivate or remove pathogens from the water. Since 1996, the Water
Filtration Plan has obtained this treatment chemical at a significant cost savings
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by soliciting competitive bids jointly with the cities of Grand Haven, Grand
Rapids, Holland, Muskegon Heights, and Wyoming.
The sodium hypochlorite supply chain was initially disrupted from a shutdown of
industrial manufacturing due to Covid-19. Major production facilities in the Gulf
Coast region experienced a series of natural disasters that further disrupted the
industry. By early 2021, major suppliers were declaring force majeure. Production
facilities in other locations experienced equipment failures and other problems.
It is expected the market will not stabilize for another 24 months. This
combination of events led the EPA to provide guidance on how water utilities
could use the Department of Commerce or the Defense Production Act to
obtain treatment chemicals if their supply was interrupted. Our supplier of liquid
sodium hypochlorite, Alexander Chemical, has been able to obtain a limited
supply of these materials in order to keep us supplied. However, it has come at
an increased cost due to rising material prices.
At the November 9, 2021 meeting, the Commission approved a change order
from Alexander Chemical for a temporary price increase from $205.58 per ton to
$290 per ton. An increase from $290 per ton to $320 per ton was approved at
the staff level in December 2021. Alexander Chemical is requesting another
temporary price increase to $370 per ton until the market stabilizes, and they
have agreed to maintain this price through the first quarter. Grand Rapids holds
the master agreement for the purchasing cooperative and has already
approved this change order. The cooperative does not believe that soliciting
other bids would provide reduced pricing. This is an industry-wide problem, and
these challenges exist for any company supplying this product.
Prior to this increase, the Water Filtration Plant spent $62,592.72 to procure liquid
sodium hypochlorite. If this temporary price increase remains in effect for the
remainder of the fiscal year, it is estimated an additional $77,000 will be spent,
bringing the FY21-22 total cost to $139,592.72. Liquid sodium hypochlorite is
included in the budget, but the actual amount spent will depend on the volume
of the water treated, the quality of the source water, and the duration of any
temporary price increases. This additional request will be addressed in a budget
reforecast if necessary.
Staff has reviewed the available options and there are no alternatives that
would result in a different outcome or a price savings for the city.
AMOUNT REQUESTED: $139,592.72 (estimate) AMOUNT BUDGETED: $72,864.00
($18,118.70 over last request)
FUND OR ACCOUNT: 591-60558-5219
STAFF RECOMMENDATION: Authorize staff to purchase liquid sodium
hypochlorite from Alexander chemical at a temporary increased price of
$370.00 per ton and authorize the City Manager to approve any subsequent
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change orders through the remainder of the next 12 months.
D. Laketon/Lakeshore Trail Connector Grant Resolution Public Works
SUMMARY OF REQUEST: Staff is seeking formal resolution of support to submit a
grant application to MDOT/MDNR for the Laketon/Lakeshore Trail Connector
(LLTC) Project.
Staff is seeking funds through two programs to provide the base funding for
construction of a new non-motorized trail named the Laketon/Lakeshore Trail
Connector. The trail would be constructed in the road right-of-way along
Sandford Street and Terrace Street between Laketon Avenue and Shoreline
Drive linking the Laketon Trail and the Lakeshore Trails.
Grant funding is being pursued through two programs TAP (MDOT –
Transportation Alternatives Program) and RTP (MDNR – Recreational Trails
Program). If successful this grant could provide 60-70% of the funding necessary
for the project.
If successful construction would begin as early as 2024.
Staff is recommending approval of the resolution of support.
STAFF RECOMMENDATION: Approve the resolution of support for the
MDOT/MDNR grant application and Authorize the Clerk to sign.
G. Arena Participation Agreements City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the participation
agreements.
We have been working with the LCC to convert the arena liquor license from a
Civic Center License to a DDC license. This has been a cumbersome process,
but was necessary to properly operate Rad Dad’s and Carlisle’s in the space.
We are in the home stretch. As part of the change, we were required to convert
the existing leases into participation agreements – this is the appropriate
terminology to match the activities at he arena. We are seeking approval.
STAFF RECOMMENDATION: Approve the participation agreements for Rad
Dad’s Tacos and Tequila and Carlisle’s Goods and Leisure.
H. Summer Concert Series, Social Sandbox Economic Development -
REMOVED
I. Community Relations Committee Recommendations City Clerk
SUMMARY OF REQUEST: To concur with the CRC recommendations to make
appointments.
The CRC recommends making the following appointments:
Board of Review – Sherry Burt (Citizen) – term expiring 1/31/2024
Farmers Market Advisory Board – Kelly Balta (Seasonal Crafter/Artisan) –
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term expiring 1/31/2025
Housing Code Board of Appeals – Ed Simmons (Citizen) – term expiring
1/31/2025
STAFF RECOMMENDATION: To concur with the recommendation of the CRC
to accept the appointments to Board of Review, Farmers Market Advisory
Board, and Housing Board of Appeals.
Motion by Commissioner Gorman, second by Commissioner Emory, to accept
the consent agenda as presented, minus items E and F.
ROLL VOTE: Ayes: Emory, St.Clair, Johnson, Hood, Ramsey, German, and
Gorman
Nays: None
MOTION PASSES
2022-21 REMOVED FROM CONSENT AGENDA:
E. 435 Isabella Renovation City Manager
SUMMARY OF REQUEST: Staff is seeking approval to fund the renovation of 435
Isabella Avenue.
This property was originally acquired via tax foreclosure as a project for
Community and Neighborhood Services to undertake a renovation as part of
the HOME Program. It was eventually determined that the house needed too
much work. We had Tim Harvey take a look at it and he feels comfortable
renovating the home and maintaining it as a two-unit property. Currently, there
are three living units. We feel there is an opportunity to add a third unit if the FBC
zoning were secured, as the large garage has a second floor that would
convert to a studio apartment. For now, we intend to renovate the main house
at a cost of approximately $220,000. This would include all new systems (HVAC,
plumbing, and electrical). This would also include upgraded exterior finishes
(windows, LP siding, etc.)
AMOUNT REQUESTED: $220,000.00 AMOUNT BUDGETED: $0
FUND OR ACCOUNT: Public Improvement
STAFF RECOMMENDATION: Approve the renovation budget for 435 Isabella
at $220,000, and amend the FY 2021-22 Public Improvement Fund Budget to
include the project during the fiscal year.
Motion by Vice Mayor German, second by Commissioner St. Clair, to approve
the renovation budget for 435 Isabella at $220,000, and amend the FY 2021-22
Public Improvement Fund Budget to include the project during the fiscal year.
ROLL VOTE: Ayes: St.Clair, Johnson, Hood, Ramsey, German, Gorman, and
Emory
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Nays: None
MOTION PASSES
F. Rezoning 653 Yuba Street Planning
SUMMARY OF REQUEST: Staff initiated request to rezone a portion of the
property at 653 Yuba Street from R-1, Low Density Single Family Residential to B-4,
General Business. The Planning Commission recommended approval o the
rezoning by a 6-0 vote.
STAFF RECOMMENDATION: To approve the request to rezone a portion of the
property at 653 Yuba Street from R-1, Low Density Single Family Residential to B-4,
General Business.
Motion by Vice Mayor German, second by Commissioner St. Clair, to approve
the request to rezone a portion of the property at 653 Yuba Street from R-1, Low
Density Single Family Residential to B-4 General Business.
ROLL VOTE: Ayes: Johnson, Hood, Ramsey, Gorman, Emory, and St. Clair
Nays: German
MOTION PASSES
2nd READING REQUIRED
2022-22 PUBLIC HEARINGS:
A. Commercial Rehabilitation District – 130 E Apple Ave Planning
SUMMARY OF REQUEST: Pursuant to Public Act 210 of 2005, as amended, the
Forrest Group of West Michigan LLC has requested the establishment of a
Commercial Rehabilitation District. The creation of the district will allow the
building owner to apply for a Commercial Rehabilitation Certificate, which will
freeze the taxable value of the building and exempt the new real property
investment from local taxes. The school operating tax and the State Education
Tax (SET) are still levied on the new investment. Land and personal property
cannot be abated under this act.
Once the Commission approves the establishment of the district, the County has
up to 28 days to accept or reject the establishment of the district. If the County
does not reject it, then the applicant may apply for the Commercial
Rehabilitation Certificate.
STAFF RECOMMENDATION: To approve the request to establish a
Commercial rehabilitation District at 130 E. Apple Avenue.
PUBLIC COMMENTS RECEIVED: Talonda Haver, part of the Forrest Group of West
MI, asking for establishment of Commercial District – building has been vacant
for nine years. Costly repairs are needed to the property.
Motion by Commissioner Ramsey, second by Commissioner Hood, to close the
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public hearing and approve the request to establish a Commercial
Rehabilitation District.
ROLL VOTE: Ayes: Hood, Ramsey, German, Gorman, Emory, St.Clair, and
Johnson
Nays: None
MOTION PASSES
2022-23 UNFINISHED BUSINESS:
A. Ride Muskegon Operating Agreement City Manager
SUMMARY OF REQUEST: City staff updated the proposed operating agreement
with Ride Muskegon, LLC to operate a scooter rental business in the City and we
are seeking approval.
Staff is recommending approval of the operating agreement. Ride Muskegon,
LLC is locally owned and operated. We have incorporated a number of the
changes requested by the City Commission last year. This is the latest the
agreement can reasonably be approved if they are to acquire the scooters in
time for the summer season. We are finalizing a lost of locations and will have
that available for the Commission meeting.
STAFF RECOMMENDATION: Approve the operating agreement and authorize
the City Manager to sign.
Motion by Commissioner Gorman, second by Commissioner Ramsey, to
approve the operating agreement and authorize the City Manager to sign.
ROLL VOTE: Ayes: Ramsey, German, Gorman, and Hood
Nays: Emory, St.Clair, and Johnson
MOTION PASSES
Motion by Commissioner St.Clair, second by Commissioner Emory, for staff to
return to the City Commission with proposed final attachments to the Ride
Muskegon Operating Agreement for adoption.
ROLL VOTE: Ayes: German, Gorman, Emory, St.Clair, Johnson, Hood, and
Ramsey
Nays: None
MOTION PASSES
2022-24 NEW BUSINESS:
A. 2nd Quarter Budget Reforecast Finance
SUMMARY OF REQUEST: At this time staff is asking for approval of the 2nd Quarter
Budget Reforecast for the FY 2021-22 budget year as presented.
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General Fund
Revenues:
Finance adjusted numerous accounts. Some of the notable increases in revenue
are listed below:
Traffic Fines & Fees were increased from $200,000 to $235,000. This increase is
mostly due to enforcement of paid beach parking.
The General Fund has received an uptick in contributions in the 4805 Fund.
Originally, we budgeted $20,000. The 2nd Quarter reforecast is now $130,000.
The Contributions/Grant account originally had nothing budgeted. However, we
received several grants from our Michigan Municipal Risk Management
Authority to purchase police equipment. The new budget amount is now
$75,000.
Marihuana Street Lights contribution line items has been increased to $67,000
the original budgeted amount was $30,000. As of December 2021, we have
received almost $40,000 in contributions for street lights from Marihuana
businesses.
Expenses:
The most notable expenditure increase in the General Fund is in Park
Maintenance. The DPW Director asked to increase his budget by $289,000
mostly for seasonal labor.
The $700,000 for Reese & Beukema was on the wrong budget line and now it is
on the right project number.
As of December 31st, our Expenditures are exceeding our Revenues by
$1,793,854.
WATER AND SEWER FUNDS
Sewer Expenses:
Again, we are reducing Muskegon County Wastewater Treatment costs to
$5,400,000 based on the current projections. The original amount budgeted for
20/21 was $6,000,000 and then was reduced to $5,500,000 in the 1st Quarter.
STAFF RECOMMENDATION: To approve the 2nd Quarter FY 2021-22 Budget
Reforecast as presented.
Motion by Commissioner Ramsey, second by Commissioner Emory, to approve
the 2nd Quarter FY2021-22 Budget Reforecast as presented.
ROLL VOTE: Ayes: Gorman, Emory, St.Clair, Johnson, Hood, Ramsey, and
German
Nays: None
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MOTION PASSES
B. Amendment to the Marihuana Facilities Overlay District – Temporary
Marihuana Events Planning
SUMMARY OF REQUEST: Staff initiated request to amend Section 2331 of the
zoning ordinance to allow temporary marihuana events at 470 W. Western
Avenue and 1800 Peck Street.
The Planning Commission made two separate motions on the case. The first was
to make a recommendation to the City Commission to approve the request at
470 W. Western Avenue, which passed by a 6-1 vote. The second was to make a
recommendation to the City Commission to approve the request at 1800 Peck
Street, which passed by a 4-3 vote.
STAFF RECOMMENDATION: To approve the request to amend Section 2331
of the zoning ordinance to allow temporary marihuana events at 470 W.
Western Avenue and 1800 Peck Street.
Motion by Commissioner Ramsey, second by Commissioner St.Clair, to approve
the request to amend Section 2331 of the zoning ordinance to allow temporary
marihuana events at 470 W. Western Avenue.
ROLL VOTE: Ayes: Emory, St.Clair, Johnson, Hood, Ramsey, German, and
Gorman
Nays: None
MOTION PASSES
Motion by Commissioner Ramsey, second by Commissioner St.Clair, to approve
the request to amend Section 2331 of the zoning ordinance to allow temporary
marihuana events at 1800 Peck Street.
ROLL VOTE: Ayes: St.Clair, Johnson, Ramsey, German, and Emory
Nays: Hood and Gorman
MOTION PASSES
2nd READING REQUIRED FOR 1800 PECK STREET
2022-25 ANY OTHER BUSINESS: As a matter of housekeeping – Mayor
Johnson would entertain a motion to officially accept the resignation of Frank
Peterson, City Manager.
Motion by Commissioner St.Clair, second by Commissioner Emory, to officially
accept the resignation of Franklin J. Peterson as City Manager effective April 1,
2022.
ROLL VOTE: Ayes: Johnson, Hood, Ramsey, German, Gorman, Emory, and
St.Clair
Nays: None
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MOTION PASSES
Also, under Any Other Business, Commissioner Ramsey asked about the tracking
of Social District cup and sticker sales. Staff explained that they are tracked. He
believes he misheard something. Mayor Johnson asked if the Governor has
signed the law allowing special event licenses in the social district. There will be
more discussion about possibly extending the district at a later date. Also,
Commissioner St.Clair asked if it was necessary to formally accept the
resignation of the Public Safety Director, it is not. The position is appointed by the
City Manager. There was discussion regarding the interview panel for the Public
Safety Director and the opportunity to meet candidates at a meet and greet
event.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were
received.
ADJOURNMENT: The City Commission adjourned at 7:55 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
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