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CITY OF MUSKEGON
CITY COMMISSION MEETING
JUNE 28, 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, June 28, 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.
Present: Mayor Ken Johnson, Vice Mayor Willie German, Jr., Commissioners, Eric
Hood, Rachel Gorman, Rebecca St.Clair, and Michael Ramsey, Interim City
Manager LeighAnn Mikesell, City Attorney John Schrier, and City Clerk Ann
Meisch.
Absent: Commissioner Teresa Emory
PUBLIC COMMENT ON AGENDA ITEMS: Public comments received.
2022-61 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the May 24, 2022 Regular
Meeting.
STAFF RECOMMENDATION: To approve the minutes.
B. Mercy Health Arena ADA Upgrades – Contract Award Arena and Public
Works
SUMMARY OF REQUEST: Upon previous approval at the February 8, 2022
Commission Meeting, Spark43 and Coalition Companies proceeded with
designing and bidding the ADA and necessary Life safety upgrades to the
Arena and infrastructure/utility upgrades to Thayer Street. The design is now
complete and competitive bids have been solicited for the work.
Bids were solicited for the construction project at the Arena & Thayer. ADA
upgrades will be made to the alley, restrooms will be accessible from the street,
the out of code stairs will b replaced with anew set that includes a storage area.
Utilities along Thayer will be replaced, including the water main, water services
and appurtenant parts. The bid tabulation is provided.
The arena portion of this project is proposed for funding through ARPA Dollars as
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noted in the February 8, 2022 Commission item, alternatively and if awarded
RAP (Revitalization and Placemaking) Grant dollars can be utilized though the
grant award is still several months away, if the project is selected.
AMOUNT REQUESTED: $788,550 AMOUNT BUDGETED: $750,000
FUND OR ACCOUNT(s): FUND OR ACCOUNT(s):
590-UNASSIGNED (Thayer)=$113,156 590-UNASSIGNED (Thayer)=$100,000
590-UNASSIGNED (Thayer)=$113,156 590-UNASSIGNED (Thayer)=$100,000
254-UNASSIGNED (ARPA)=$562,239 254-UNASSIGNED (ARPA)=$550,000
STAFF RECOMMENDATION: Authorize staff to proceed with the project
utilizing the recommended sub-contractors for a total amount not to exceed
$788,550.
D. Concession Agreement – Frostbite Shaved Ice Public Works
SUMMARY OF REQUEST: Staff is seeking permission to enter into a contractual
agreement with Justin Hawkins of “Frostbite Shaved Ice” at various locations
including Sheldon, Campbell, and Pere Marquette Parks.
Staff is asking permission to enter into a Concession agreement for 2022 with
Justin Hawkins of “Frostbite Shaved Ice” at various parks including Sheldon,
Campbell, and Pere Marquette Parks. Staff have proposed fees to the City of
$1,000 plus 5% of Gross Receipts; the specific proposal is provided. Mr. Hawkins
proposes to locate the concession daily depending on weather and traffic in an
attempt to maximize sales. Staff will work with Mr. Hawkins to ensure specific
locations are safe and accessible.
STAFF RECOMMENDATION: Authorize staff to enter into a Concession
Agreement with Justin Hawkins of “Frostbite Shaved Ice” at various locations
including Sheldon, Campbell, and Pere Marquette Parks.
F. Swan Alpha Development Agreement Rescission City Manager
SUMMARY OF REQUEST: City Commission previously approve an agreement
with Swan Alpha Development to develop 26 new housing units at the former
farmer’s market site. Staff is seeking approval to rescind the development
agreement which has been canceled by the developer.
Following the City Commission’s approval of the updated Swan Alpha
Development Agreement in December 2020, the developer continued with
preconstruction due diligence. The result of that due diligence was the
understanding that the development would likely be too expensive to construct
because of environmental issues that would require significant expense to
remedy. Accordingly, the developer has canceled the agreement. The
development agreement contemplated in the City of Muskegon making certain
investments in the necessary infrastructure, and $250,000 from the Economic
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Development Fund was set aside. That will no longer be necessary.
STAFF RECOMMENDATION: To approve the rescission of the Swan Alpha
Development agreement.
H. Sale – 1920 S Getty, 2155 Continental, and 2209 Valley Planning
SUMMARY OF REQUEST: City staff is seeking authorization to sell three of the City
owned vacant lots to Garrett Investment Properties LLC.
Garrett Investment Properties LLC will be constructing a total of seven (7) single-
family homes on the lots owned by the City of Muskegon. The properties are
zoned R-2 (Single Family Residential). There will be five single-family homes
constructed on the property at 1920 S Getty with one single-family home
constructed on each of the parcels at 2155 Continental and 2209 Valley, they
will be sold for 75% of the True Cash Value (TCV) per policy. The total selling price
will be $11,550. All of the properties are located in the Brownfield Development
area. The homes will be constructed within twenty-four (24) months.
STAFF RECOMMENDATION: To authorize the Code Coordinator to work with
the developer and complete the sale of the three City owned buildable lots as
described and to have the Mayor and Clerk sign the purchase agreement and
deed.
I. First Responder Training and Recruitment Grant Acceptance Public
Safety
SUMMARY OF REQEUST: In February, Public Safety applied for grant funds from
the First Responder Training and Recruitment grant program. We were one of 60
communities awarded funds out of over 400 applicants. We ask the City
Commission to accept $87,065.00 in awarded funds and approve the
expenditures as outlined in the grant.
Public Safety was awarded $87,065 from the State of Michigan First Responder
Training and Recruitment grant program. The grant proceeds can only be used
for the purposes for which they are awarded. Our grant application outlined the
funds being used as follows:
• Expand recruitment by sponsoring two law enforcement officer recruits to
attend the police academy;
• Improve training and provide additional professional development of all
our law enforcement officers by purchasing de-escalation and use of
force simulator training equipment (MILO system) and;
• Improve training and proved additional professional development of our
firefighters by contracting with a firm to provide ice rescue training.
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Category Item Description Total Cost
Salary and Wages Two MPD Law $20 per hour, 40 hours per $24,000
Enforcement week, for 15-week police
Recruits academy.
Contractual GVSU Police Tuition ($7,120), student $18,280
Academy fee ($1,700), academy
uniform ($320) or two
recruits
Contractual Dive Rescue Ice Rescue Training $8,500
International Student fee ($425) for 20
firefighters
Equipment MILO Judgement MILO Virtual reality $36,285
and De-Escalation simulator equipment to
Simulator include mobile training
system equipment
($20,995) and add on
training options equivalent
to the equipment used by
MPD
Total Grant Request/Award $87,065
AMOUNT REQUESTED: $87,065 AMOUNT BUDGETED: $0
(100%) reimbursed through grant)
STAFF RECOMMENDATION: To accept the First Responder Training and
Recruitment Grant and approve the expenditures as outlined in the grant
application.
K. Rezoning 930 W Sherman Boulevard – 2nd Reading Planning
SUMMARY OF REQUEST: Request to rezone the property at 930 W Sherman Blvd
from B-2, Convenience and Comparison Business to B-4, General Business, by
930 Sherman, LLC.
The Planning Commission unanimously recommended approval of the rezoning.
STAFF RECOMMENDATION: To approve the request to rezone the property at
930 W Sherman Blvd from B-2, Convenience and Comparison Business to B-4,
General Business.
L. Arena Temporary Liquor License City Manager
SUMMARY OF REQUEST: City staff is requesting a temporary outdoor service
permit for the Discover Muskegon Festival on July 1 and 2.
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STAFF RECOMMENDATION: To approve the application for a temporary
outdoor service permit under the city’s liquor license at the Trinity Health Arena.
M. Rejection of Demolition Bid Public Safety
SUMMARY OF REQUEST: This is to request that the City Commission reject the
Demolition Bid received from Midwest Demolition for 561 Catherine Ave, 275
Myrtle Ave, and 1470 Samburt, and authorize staff to re-bid, and authorize staff
to award the bid to the lowest responsible bidder.
FUND OR ACCOUNT: 101-80387-5356
STAFF RECOMMENDATION: To reject the demolition bids received for 561
Catherine, 275 Myrtle, and 1470 Samburt.
Motion by Commissioner Gorman, second by Commissioner Ramsey, to accept
the consent agenda as presented, minus item C, E, G, and J.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Hood, Ramsey, and German
Nays: None
MOTION PASSES
2022-62 REMOVED FROM CONSENT AGENDA:
C. Catamaran Storage Public Works
SUMMARY OF REQUEST: Staff is requesting Commission approval to designate a
portion of Harbour Towne Beach for Catamaran use during the sailing season
(April – October) and to establish a user fee.
The city previously offered catamaran storage at both Pere Marquette and
Harbour Towne; during the previous high water cycles this service was canceled
as there was a lack of beach to offer. As the water has receded the opportunity
has returned and there are a group of users passionate to see catamarans
make their return to the areas.
Staff would not recommend returning the service at Pere Marquette, however
utilizing a small portion of Harbour Towne Beach was reviewed by staff and
found to be an option that would be considered.
Staff is recommending that an approximately 70FT x 50 FT section of the
southerly end of Harbour Towne Beach could be used for his purpose. It is
estimate this could accommodate somewhere in the range of ten Catamarans.
Staff is also proposing an annual fee of $400 per boat for the use of this area.
Staff will provide no services other than the installation of signs to delineate the
designated area. With proceeds contributed toward the General Fund for use in
maintaining the areas.
Spaces would be offered on a first come first serve basis up to a maximum of ten
catamarans or when the space is full, whichever comes first.
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STAFF RECOMMENDATION: To approve the establishment of a catamaran
zone at Harbour Towne Beach and establish the user fee at $400/season.
Motion by Commissioner Ramsey, second by Commissioner Hood, to approve
the establishment of a catamaran zone at Harbour Towne Beach and establish
the user fee at $400/season.
ROLL VOTE: Ayes: St.Clair, Johnson, Hood, Ramsey, German, and Gorman
Nays: None
MOTION PASSES
E. Watermark Development Agreement Rescission City Manager
SUMMARY OF REQUEST: City Commission previously approved a development
agreement for the Watermark Center. Staff is seeking approval to rescind the
development agreement.
The agreement and consent assessment approve din January 2021 were never
signed by the developer/owner. The property is now under different ownership
and is listed for sale.
STAFF RECOMMENDATION: To approve the rescission of the Watermark
Development Agreement.
Motion by Vice Mayor German, second by Commissioner St.Clair, to approve
the rescission of the Watermark Development Agreement.
ROLL VOTE: Ayes: St.Clair, Johnson, Hood, Ramsey, German, and Gorman
Nays: None
MOTION PASSES
G. Interim City Manager Stipend City Manager
SUMMARY OF REQUEST: To revise the stipend paid for the additional duties
being performed in the Interim City Manager role.
The $300 weekly salary stipend is set to expire June 30, 2022. Due to the level of
effort and time commitment required to serve in multiple capacities for an
extended period of time, it is being proposed to raise the stipend to $450 per
week for another three-month time period, ending September 30, 2022. If the
selection for City Manager is not made within this time frame, the salary and
benefits will be renegotiated.
AMOUNT REQUESTED: $5,850 AMOUNT BUDGETED: Included in Salary Line
FUND OR ACCOUNT: 101-10172-5100
STAFF RECOMMENDATION: To approve the weekly stipend as presented.
Motion by Vice Mayor German, second by Commissioner St.Clair, to approve
the weekly stipend as presented.
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ROLL VOTE: Ayes: Johnson, Hood, Ramsey, German, Gorman, and St.Clair
Nays: None
MOTION PASSES
J. Purchase of 1192/1194 Pine Street Community & Neighborhood
Services
SUMMARY OF REQUEST: To purchase the 2 building-3 unit property for the
purpose of creating Affordable Housing opportunities for families in need of
placement through our local Continuum of Care agencies and maintained by
CNS through its City Rental Rehabilitation Program.
Current property is a market-rate and CNS wants to capitalize on creating
affordable housing for a vulnerable population of homeless families through the
process of the Continuum of Care network. CNS will manage and monitor
occupancy through the Rental Rehabilitation Program for income eligible
households at 60% AMI and at-risk of homelessness.
AMOUNT REQUESTED: $316,000 AMOUNT BUDGETED: $400,000
FUND OR ACCOUNT: HOME 2020/2021
STAFF RECOMMENDATION: To approve the purchase of 1192/1194 Pine
Street for the City of Muskegon to create Affordable Housing for the Continuum
of Care (CoC) population through the City’s Rental Rehabilitation Program.
Motion by Vice Mayor German, second by Commissioner Hood, to approve the
purchase of 1192/1194 Pine Street for the City of Muskegon to create Affordable
Housing for the Continuum of Care (CoC) population through the City’s Rental
Rehabilitation Program.
ROLL VOTE: Ayes: Hood, Ramsey, German, Gorman, St.Clair, and Johnson
Nays: None
MOTION PASSES
2022-63 UNFINISHED BUSINESS:
A. Transmittal of 2022-23 Proposed Budget Finance
SUMMARY OF REQUEST: At this time staff is transmitting to the City Commission
the proposed budget for fiscal year 2022-23 which starts July 1, 2022. Both
hardcopy and electronic versions of the budget have been distributed to
Commissioners. Additionally, the budget is available for inspection on the City’s
website and at the City Clerk’s office.
The proposed budget was reviewed in datil with staff at the June 13, 2022
worksession. A public hearing on the budget was held at the regular
Commission meeting on June 14, 2022. City ordinance requires that the budget
be adopted by the Commission on or before the second Commission meeting in
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June.
STAFF RECOMMENDATION: To approve the proposed budget for fiscal year
2022-23.
Motion by Commissioner St.Clair, second by Vice Mayor German, to approve
the proposed budget for Fiscal Year 2022-23.
ROLL VOTE: Ayes: German, Gorman, St.Clair, Johnson, and Hood
Nays: Ramsey
MOTION PASSES
2022-64 NEW BUSINESS:
A. Housing Board of Appeals Demolitions Public Safety
938 E. Forest Avenue
1945 Reynolds
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within 30 days. It is
further requested that administration be directed to obtain bids for the
demolition of the structures 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 structures.
AMOUNT REQUESTED: Bids
FUND OR ACCOUNT: 101-80387-5356
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Ramsey, second by Commissioner Hood, to concur
with the Housing Board of Appeals decision to demolish 938 E. Forest.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Hood, Ramsey, and German
Nays: None
MOTION PASSES
Motion by Commissioner Ramsey, second by Vice Mayor Germ, to concur with
the Housing Board of Appeals decision to demolish 1945 Reynolds.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Hood, Ramsey, and German
Nays: None
MOTION PASSES
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B. 4th Quarter Reforecast Finance
SUMMARY OF REQUEST: At this time staff is asking for approval of the 4th Quarter
Budget Reforecast for the FY 2021-22 budget year.
Highlights of the FY 2021-22 4th quarter reforecast are below:
General Fund
Revenues:
Income Tax collections have been better the projected for the 4th quarter. The
Income Tax Revenue has been adjusted up to $9,300,000. Income tax revenue
projections were originally budgeted for $9,100,000 this year.
State Replacement Revenue for Personal Property Taxes has been adjusted to
$929,000 and they were originally budgeted for $800,000.
Bond Proceeds have been adjusted down to $289,176 from $1,085,275. Most of
the revenue was collected in the previous year.
Expenditures:
The Contributions Department budget has been increased by $88,600. Some of
the significant changes were primarily for the Neighborhood Associations
Grants. Their year-end expenses are expected to be $227,000 and were
originally budgeted at $150,000. Port City Football was excluded from the
original budget. We are expected to pay them $5,000 this fiscal year. Rate
increases were updated to the Muskegon Area Transit (Regular and Micro)
Police and Fire salaries were adjusted up again, based on actual payroll figures.
City Attorney fees are higher based on additional hourly fees. Projected costs
through the end of the year is $505,000. The original budgeted amount was
$380,000. Last year we paid them $431,002.
STAFF RECOMMENDATION: To approve the 4th Quarter FY2021-22 Budget
Reforecast as presented.
Motion by Commissioner St. Clair, second by Commissioner Ramsey, to approve
the 4th Quarter FY2021-22 Budget Reforecast as presented.
ROLL VOTE: Ayes: St.Clair, Johnson, Hood, Ramsey, German, and Gorman
Nays: None
MOTION PASSES
C. 2022 Long Term Goal Adoption City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the long-term goals for
2022-2027.
Staff and Commissioners met on April 15, 2022 to create a shared vision of the
future with major goals, key objectives, and one-year tasks. After receiving he
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report from our facilitator, Lew Bender, city division and department heads
developed a draft City Commission Vision for 2022-29027. The vision includes four
major goals: Destination Community& Quality of Life, Economic Development,
Housing, and Business, Community Connection, and Financial Infrastructure.
Staff reviewed the draft vision with Commissioners at the June Worksession and
have modified the document based on comments received. The final version is
presented for approval at this time.
STAFF RECOMMENDATION: To approve the City Commission Vision for 2022-
2027.
Motion by Commissioner Ramsey, second by Commissioner Gorman, to
approve the City Commission Vision for 2022-2027.
ROLL VOTE: Ayes: St.Clair, Johnson, Hood, Ramsey, German, and Gorman
Nays: None
MOTION PASSES
2022-65 ANY OTHER BUSINESS:
A. Fire Turn Loan to Museum - Renewal City Manager
SUMMARY OF REQUEST: Staff is seeking approval to renew the loan agreement
with the Lakeshore Museum Center for the 1923 American LaFrance Fire Truck
and attached equipment.
Since 1990, the city has loaned an older model fire truck to the museum. The
truck is insured for up to $50,000.
STAFF RECOMMENDATION: To approve the renewal of the loan agreement
with the Lakeshore Museum Center for the 1923 American LaFrance Fire Truck
and attached equipment and authorize the City Manager to sign.
Motion by Commissioner Ramsey, second by Commissioner St.Clair, to approve
the renewal of the loan agreement with the Lakeshore Museum Center for the
1923 American LaFrance Fire Truck and attached equipment and authorize the
City Manager to sign.
ROLL VOTE: Ayes: Johnson, Ramsey, German, Gorman, and St.Clair
Nays: None
MOTION PASSES
B. Transfer $100,000 to Budget Stabilization Fund
Motion by Commissioner St.Clair, second by Commissioner Ramsey, to approve
transfer $100,000 from our General Fund Surplus to the Budget Stabilization Fund
for FY 2021-22.
ROLL VOTE: Ayes: Ramsey, German, Gorman, St.Clair, and Johnson
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Nays: None
MOTION PASSES
C. Fly Pride Flag Last Day of June
Motion by Commissioner Ramsey, second by Commissioner St.Clair, to fly the
LGBTQIA2S+ Progressive Flag for the last day of June 2022.
ROLL VOTE: Ayes: Ramsey, German, Gorman, St.Clair, and Johnson
Nays: Hood
MOTION PASSES
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments received.
ADJOURNMENT: The City Commission meeting adjourned at 7:24 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC - City Clerk
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