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CITY OF MUSKEGON
CITY COMMISSION MEETING
MAY 24, 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, May 24, 2022.
Vice Mayor, Willie German, Jr., 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, Eric
Hood (left at 7:25 p.m.), Teresa Emory, Rachel Gorman, Rebecca St.Clair, and
Michael Ramsey (left at 7:30 p.m.) Interim City Manager LeighAnn Mikesell, City
Attorney John Schrier, and Deputy City Clerk Kimberly Young
PUBLIC COMMENT ON AGENDA ITEMS: No public comments were received.
2022-46 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the April 26, 2022 Regular
Meeting and April 29, 2022 Special Meeting.
STAFF RECOMMENDATION: To approve the minutes.
C. Concession Agreement – Patti Wagon Public Works
SUMMARY OF REQUEST: Staff is asking permission to enter into a contractual
agreement with Patti Costner of “Patti Wagon” at various locations including
Robert C. Lighton Park, Beachwood Park, Pere Marquette Park, and Margaret
Drake Elliot Park.
Staff is asking permission to enter into a Concession Agreement for 2022 with
Patti Costner of “Patti Wagon” at various parks including Robert C. Lighton Park,
Beachwood Park, Pere Marquette park, and Margaret Drake Elliot Park. “Patti
Wagon” has been operating in the parks near the beach and City Hall at
various times this spring. Staff has contacted Ms. Costner in an attempt to reach
a concession agreement. Ms. Costner and staff have proposed fees to the City
of $250.00 plus 5% of gross receipts; the specific proposal is in the packet and
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includes certification and inspection documents; staff will work to ensure all
necessary licenses and certificates are on file. Ms. Costner proposes to locate
the concession each day depending on weather and traffic in an attempt to
maximize sales. Staff will work with Ms. Costner to ensure specific locations are
safe and accessible.
STAFF RECOMMENDATION: Authorize staff to enter into a Concession
Agreement with Patti Costner of “Patti Wagon” at various city parks, including
Robert C. Lighton, Beachwood, Pere Marquette, and Margaret Drake Elliot, for
2022.
D. Engineering Services – Drinking Water Revolving Fund for Lead Service Line
Replacement Public Works
SUMMARY OF REQUEST: Staff is seeking permission to enter into a professional
services agreement with Prein & Newhof for $220,000 related to lead service line
replacement design and construction engineering services.
The Michigan Department of Environment, Great Lakes and Energy (EGLE) has
awarded the City a Drinking Water Revolving Fund (DWRF) loan of up to
$3,220,000 for lead service line replacement (LSLR). As a part of the Water
Infrastructure Funding Transfer Act (U.S. Senate Bill 1689), this “loan” was issued
with the knowledge that once complete, $3,000,000 in principle will be forgiven.
The funding will be available for expenditure from approximately October 1,
2022 through September 20, 2025 (over a three year period).
Staff are pursuing a two-pronged approach. Approximately half of the $3 million
will be spent by DPW staff over the next three years. The grant will be used to
pay existing staff when working on LSLR, purchase additional equipment and
hire new staff as necessary, and buy materials. The other half will be spen by
contracting to replace service lines in the Marsh Field neighborhood, southwest
of the intersection of Laketon and Getty. The full three years will be provided to
the contractor to help reduce pricing.
In accordance with the prequalified firm process undertaken with the
Commission in late 2019, staff negotiated with Prein & NEwhof to prepare a
proposal for design and construction services related to the contracted portion
of the loan, as well as assistance, with the loan paperwork and reporting on the
entire loan. The proposal and professional services agreement are provided in
the packet, are predicated on a three-year construction period, and are of the
form used by Prein & Newhof for the last several years. If the contracted portion
is completed sooner, at the contractor’s option, then the amount of
construction services could be less. This was not included in this fiscal year
budget as award of the loan was not certain. It will be included in the next three
fiscal year budgets as appropriate.
AMOUNT REQUESTED: $220,000 AMOUNT BUDGETED: n/a
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FUND OR ACCOUNT: 591-60555-Various
STAFF RECOMMENDATION: Authorize staff to enter into a professional
services agreement with Prein & Newhof for $220,000 related to lead service line
replacement design and construction engineering services.
E. Transportation Economic Development Fund Public Works
SUMMARY OF REQUEST: Staff is seeking a formal resolution of support to submit
a grant application to MDOT for a TEDF Grant for the extension of Olthoff Drive.
Staff is seeking funds for the extension of Olthoff Drive to serve developments on
the former corrections department site. Grant funding is being pursued through
the state’s Transportation Economic Development Fund, specifically the
Category A program. If successful this grant could provide up to 65% of the
funding necessary for the project. If successful, construction would likely begin in
the spring of 2023.
A formal resolution of support for the application is required as a part of the
grant process. Staff is recommending approval of the resolution of support.
STAFF RECOMMENDATION: Approve the resolution of support for the TEDF
Category A grant applications and authorize the clerk to sign.
F. Transportation Asset Management Plan Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to contract with Prein &
Newhof for professional services related to preparation of a Transportation Asset
Management Plan and related services.
Public Act 325 of 2018 began a process which will require all road maintaining
agencies with at least 100 centerline miles to prepare and have on file with the
state a Transportation Asset Management Plan that is updated every three
years. A rolling deadline system has resulted in Muskegon having our first plan on
file by October 1, 2022h. To that end, and recognizing the value of asset
management principles applied to City infrastructure, staff solicited a proposal.
As defined by the act, asset management is “an ongoing process of
maintaining, preserving, upgrading, and operating physical assets cost
effectively, based on a continuous physical inventory and condition assessment
and investment to achieve established performance goals.” In more practical
terms, the plan will provide a detailed inventory of roads, bridges and culverts in
the City, make and keep a record of their condition, set goals for improving the
overall condition of the City’s transportation infrastructure, and make
recommendations on how to achieve the goals in the context of the fund
expected to be available.
Staff worked with Prein & Newhof to obtain a proposal for the plan. Prein &
Newhof has prepared asset management plans for the City’s water system,
sanitary sewer system, and stormwater drainage system using various grant-
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based funding sources over the past five years. They have developed a
consistent format that allows the City to house much of the data in a single GIS-
based database, making decisions about which assets to repair or replace a
more wholistic and context-based process. Staff is confident that having the
Transportation Asset Management Plan as a part of the same system as our
other asset management plans will be a critical to making cost-efficient and
practical investments that take all the City’s assets into account.
Due to a plan document format required by the state, and the impending
deadline, Prein & Newhof has proposed to perform the work in two parts. First,
and with data collection assistance from the City, they will prepare a plan that
meets the state’s requirements for format, data collection, and deadlines. Once
approved by the state, and as the second part of the work, they will translate
the plan and data into the existing system the City is using, and make capital
improvement recommendations using the new transportation asset
management data in the context of the other plans the City has, namely water,
sanitary and drainage.
AMOUNT REQUESTED: $29,500.00 AMOUNT BUDGETED: $29,500.00
FUND OR ACCOUNT: 202- AND 203-60440-5300
STAFF RECOMMENDATION: Authorize staff to contract with Prein & Newhof in
the amount of $29,500 to prepare a Transportation Asset Management Plan and
related services.
G. Updated (MNRTF) Michigan Natural Resources Trust Fund Grant Resolution
Public Works
SUMMARY OF REQUEST: Staff is seeking to rescind a previously approved
resolution of support and replace it with an updated resolution of support for a
Michigan Natural Resources Trust Fund Grant application.
Commission previously approved Resolution 2022-27(B) at the March 22, 2022
Commission Meeting which was submitted to the Michigan Department of
Natural Resources (MDNR) on April 1, 2022 as part of a grant application. During
the administrative review process, it was noted by MDNR that the costs in the
resolution did not match the costs in the grant application.
Staff is requesting to have Resolution 2022-27(B) rescinded and to have the new
resolution approved to fulfill the administrative completeness requirements
identified by MDNR. There is no change in the match amount ($400K) or the
grant request amount ($300k) from the original resolution.
STAFF RECOMMENDATION: Rescind previously approved Resolution 2022-
27(B) and authorize the Mayor and Clerk to sign the updated Resolution of
Support for the Michigan Natural Resources Trust Fund Application at Pere
Marquette Park.
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I. HOME Administrative and Planning Funds from American Rescue Plan
(ARP) Grant Community and Neighborhood Services
SUMMARY OF REQUEST: HOME Administrative and Planning Funds from
American Rescue Plan (ARP) grant.
HOME – ARP grant allows up to 5% of our award to Community Housing
Development Organizations and non-profit organizations including homeless
providers administering all or a portion of our program grant. United Way has
provided a proposal through the RFP process offering 2022 CDBG funding
support. Their request is more in line with the new resources from HOME – ARP to
address homeless assistance needs through supportive services from the City’s
FY2021 budget.
AMOUNT REQUESTED: FY - $50,000 AMOUNT BUDGETED: $60,912.50
FUND OR ACCOUNT: HOME - ARP
STAFF RECOMMENDATION: To approve the funding request to hire a
Muskegon Homeless Coordinator/Grant Writer for the HOME – ARP initiative
through the City of Muskegon.
J. Muskegon Social Equity Plan Amendments Planning
SUMMARY OF REQUEST: Request to approve the Muskegon Social Equity
Program. The percentages allocated to each individual program have been
modified slightly.
Last year, the allocations were as follows: 30% towards grants/loans, 35%
towards expungement clinics, 35% towards education/community outreach.
This year, we are proposing 40% towards grants/loans, 30% towards
expungement clinics, 30% towards education/outreach.
STAFF RECOMMENDATION: To approve the Muskegon Social Equity Program
amendments as proposed.
K. Re-assignment of 433/435 E. Isabella Avenue Community and
Neighborhood Services
SUMMARY OF REQUEST: To assign the 2-unit Building Rehabilitation to
Community and Neighborhood Services for Affordable Housing contacts with
Local Continuum of Care agencies for the creation of City Rental Rehabilitation
Program.
Current rehabilitation of 433/435 E Isabella (2-unit) house is nearing the rough-in
inspection stage and will be demarked to assign to CNS for the final Certificate
of Occupancy inspection. CNS will hold as a Rental property owned by the city
for Affordable Housing units for local CoC agencies in need of housing units for
homeless, and at-risk of homelessness.
AMOUNT REQUESTED: $150,000 AMOUNT BUDGETED: $320,000
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FUND OR ACCOUNT: HOME Program 2020
STAFF RECOMMENDATION: Approve the re-assignment of 433/435 E Isabella
Avenue to CNS for affordable housing creation under the Rental Rehabilitation
Program.
Motion by Commissioner Gorman, second by Commissioner Ramsey, to accept
the consent agenda as presented, minus item B and H.
ROLL VOTE: Ayes: Gorman, Emory, St.Clair, Johnson, Hood, Ramsey, and
German
Nays: None
MOTION PASSES
2022-47 REMOVED FROM CONSENT AGENDA:
B. Annual Action Plan Budget 2022 Community and Neighborhood
Services
SUMMARY OF REQUEST: The Annual Action Plan Budgets are presented to the
Commission for approval based on the Department of Housing and Urban
Development (HUD) appropriations for FY2022. The Community Planning and
Development (CPD) office funded programs are Community Development
Block Grant (CDBG) and HOME investment Partnerships (HOME) and the
allocations total $1,252,544.00 for eligible programs administered by the office of
Community and Neighborhood Services.
AMOUNT REQUESTED: AMOUNT BUDGETED:
CDBG - $912,894 CDBG - $912,894
HOME - $339,650 HOME - $339,650
FUND OR ACCOUNT: 472 AND 473
STAFF RECOMMENDATION: To approve the 2022 Annual Action Plan Budgets
for CDBG and HOME Programs.
Motion by Vice Mayor German, second by Commissioner St. Clair, to approve
the 2022 Annual Action Plan Budgets for CDBG and HOME Programs.
ROLL VOTE: Ayes: Emory, St.Clair, Johnson, Hood, Ramsey, German, and
Gorman
Nays: None
MOTION PASSES
H. City Park Concession Policy Public Works
SUMMARY OF REQEUST: Staff is seeking approval of a formal concession fee
waiver process to be applied to potential concessionaires operating within the
City Park system.
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Staff is presenting a draft fee waiver application for concessionaires within the
City Park system. This document and discussion are the first step in developing a
formal concession policy, of which this fee waiver application would be one
part. Currently applications are accepted by DPW and approved at the
Commission level, with no formalized policy.
If approved, the fee waiver structure would apply to any concessionaire within
the traditionally recognized city park system that seeks a waiver due to the
types of services they provide and the groups their efforts benefit. As presented,
this waiver application would not apply to other similar operations lie Western
Market that operate outside of the city park system.
STAFF RECOMMENDATION: Approve the City Park Concession Fee Waiver
Application.
Motion by Commissioner Ramsey, second by Vice Mayor German, to approve
the City Park Concession Fee Waiver Application.
ROLL VOTE: Ayes: St.Clair, Johnson, Hood, Ramsey, German, Gorman, and
Emory
Nays: None
MOTION PASSES
2022-48 PUBLIC HEARINGS:
A. Commercial Facilities Exemption Certificate – Sweetwater Development
Planning
SUMMARY OF REQUEST: Sweetwater Development was issued a Commercial
Facilities Exemption Certificate (PA255) on June 25, 2019 for the development of
The Leonard building at 292 W Western Avenue. This commercial tax abatement
was awarded to the first three floors of the building, while the top three floors
were awarded a Neighborhood Enterprise Zone Certificate for the residential
units. They are requesting to revoke the portion of the commercial tax
abatement on only the third floor so that they may convert that floor to
additional residential units.
STAFF RECOMMENDATION: To revoke the third floor portion of the
Commercial Facilities Exemption Certificate, number 2019-142, at 292 W Western
Avenue.
PUBLIC HEARING COMMENCED: Jared Balka with Warner, Norcross, and
Judd, on behalf of Corey Leonard, provided an update to the Commission as to
the progress of the project.
Motion by Commissioner Ramsey, second by Commissioner Emory, to close the
public hearing and revoke the third floor portion of the Commercial Facilities
Exemption Certificate, number 2019-142, at 292 W. Western Avenue.
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ROLL VOTE: Ayes: Johnson, Hood, Ramsey, German, Gorman, Emory, and
St.Clair
Nays: None
MOTION PASSES
B. Commercial Rehabilitation Certificate – Northern Biomedical Research,
Inc. Planning
SUMMARY OF REQUEST: Pursuant to Public Act 210 of 2005, as amended,
Northern Biomedical Research Inc has requested the issuance of a Commercial
Rehabilitation Certificate at 2725 Olthoff Drive.
The Certificate 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. The City Commission
approved the creation of the Commercial Rehabilitation District at its March 22
meeting. The estimated investment cost is $63,000,000. The tax incentive
committee has recommended an abatement duration of ten (10) years.
STAFF RECOMMENDATION: To approve the issuance of a Commercial
Rehabilitation Certificate at 2725 Olthoff Drive for a duration of the (10) years.
PUBLIC HEARING COMMENCED:
Rev. James Johnson, 1541 Fifth Street, opposed – would like to keep this type of
business out of Muskegon.
Jan Jacobs, 16 Watershore Drive, Norton Shores, opposed.
Darlene DeHudy, 4356 Lake Harbor, Norton Shores, opposed.
Hannah Hilborn, 3320 Peck Street, opposed.
Michael Haueisen, 903 Turner Avenue, opposed.
Kwame James, 2076 Miner Ave, appreciates Commission’s careful
consideration.
Shane Woods, CEO of Northern Biomedical Research, answered questions from
the City Commissioners.
Motion by Commissioner Hood, second by Commissioner Emory, to close the
public hearing and approve the issuance of a Commercial Rehabilitation
Certificate at 2425 Olthoff Drive for a duration of ten (10) years.
ROLL VOTE: Ayes: Hood, Ramsey, German, Gorman, Emory, St.Clair, and
Johnson
Nays: None
MOTION PASSES
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2022-49 UNFINISHED BUSINESS:
A. Concession Agreement – Muskegon Lighthouse Conservancy
Public Works
SUMMARY OF REQUEST: Staff is asking permission to enter into a 3-year
contractual agreement with Erin Vorgias of the Michigan Lighthouse
Conservancy – Muskegon Lights Branch to operate a gift shop and to support
the tour operations in the chalet at Pere Marquette Park.
Staff is asking permission to enter into a Concession Agreement from May 10,
2022 – May 10, 2025 with Erin Vorgias of the Michigan Lighthouse Conservancy –
Muskegon Lights Branch. Ms. Vorgias has proposed to operate a gift ship and
support facility for their tour operations in the chalet at Pere Marquette Park.
MLC is proposing to pay the standard $1,000 annual fee to the city for the right
to use the facility, but is asking for the standard 5% of gross receipts to be
waived to help support the capital fundraising goas of the 501c3 organization as
they work to secure funds for needed repairs at the lights.
STAFF RECOMMENDATION: Authorize staff to enter into a 3-year Concession
Agreement with Erin Vorgias of the Michigan Lighthouse Conservancy for use of
the chalet at Pere Marquette Park.
Motion by Commissioner St.Clair, second by Commissioner Emory, to authorize
staff to enter into a 3-year Concession Agreement with Erin Vorgias of the
Michigan Lighthouse Conservancy for use of the chalet at Pere Marquette Park.
ROLL VOTE: Ayes: Ramsey, German, Gorman, Emory, St.Clair, Johnson, and
Hood
Nays: None
MOTION PASSES
2022-50 NEW BUSINESS:
A. Housing Board of Appeals Demolitions Public Safety
872 Forest
SUMMARY OF REQUEST: This is to request that the City Commission concur wit
the findings of the Housing Board of appeals that the structure located at 872
Forest is unsafe, substandard, a public nuisance and that it be demolished within
thirty (30) days. It is further requested that administration be directed to obtain
bids for the demolition of the structure and that the Mayor and City Clerk be
authorized and directed to execute a contract for demolition with the lowest
responsible bidder or staff may issue infraction tickets to the owner, agent, or
responsible party if they do not demolish the structure.
FUND OR ACCOUNT: 101-80387-5356
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STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish 872 Forest.
Motion by Commissioner Ramsey, second by Commissioner Gorman, to concur
with the Housing Board of Appeals decision to demolish 872 Forest.
ROLL VOTE: Ayes: German, Gorman, Emory, St.Clair, Johnson, Hood, and
Ramsey
Nays: None
MOTION PASSES
B. Amendment to Neighborhood Enterprise Zone Certificate – 292 W. Western
Planning
SUMMARY OF REQUEST: The project was approved for the NEZ Certificate in
December 2019 and included 18 residential units on floors three through six. The
applicant will now be converting the second floor into additional residential
units for a total of 24 units and is requesting to amend the NEZ certificate to
include the units on the second floor.
STAFF RECOMMENDATION: To approve the amendment to the NEZ
certificate at 292 W Western Avenue to include the new second floor units for a
total of 24 units on floors two through six.
Motion by Commissioner Gorman, second by Commissioner Ramsey, to
approve the amendment to the NEZ certificate at 292 W. Western Avenue to
include the new third floor units for a total of 24 units on floors three through six.
ROLL VOTE: Ayes: Gorman, Emory, St.Clair, Johnson, Hood, Ramsey, and
German
Nays: None
MOTION PASSES
2022-51ANY OTHER BUSINESS:
A. Request to fly Japanese Flag Mayor Johnson
Consul General Chido, from the Consulate-General of Japan, Detroit will be
visiting Muskegon with his wife on Friday, June 10, 2022. Mayor Johnson has
proposed to fly the Japanese flag in recognition of their visit.
Motion by Commissioner St.Clair, second by Commissioner Emory, to fly the
Japanese flag on June 10, 2022 at City Hall.
ROLL VOTE: Ayes: Emory, St.Clair, Johnson, Hood, Ramsey, German, and
Gorman
Nays: None
MOTION PASSES
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B. Request to fly Progressive Pride Flag in June Commissioner Ramsey
Last year the City Commission passed a resolution to recognize June as Pride
Month each year and part of that is to fly the Pride Flag.
Motion by Commissioner Ramsey, second by Commissioner St.Clair, to fly the
Progressive Pride Flag for the month of June, except June 10, when we will fly the
Japanese Flag.
ROLL VOTE: Ayes: St. Clair, Johnson, Ramsey, Gorman, and Emory
Nays: Hood and German
MOTION PASSES
Also, under any other business, Mayor Johnson shared that the Great Lakes Area
of Concern Conference is taking place this week in the City of Muskegon. As
part of the conference, the EPA is here in Muskegon to celebrate the Greater
Muskegon Area’s completion of all management actions, setting us up for a de-
listing of Muskegon Lake from the Great Lakes Area of Concern. This is a
monumental moment in our history.
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments received.
ADJOURNMENT: The City Commission meeting adjourned at 7:41 p.m.
Respectfully Submitted,
Kimberly Young, Deputy City Clerk
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