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CITY OF MUSKEGON
CITY COMMISSION MEETING
NOVEMBER 7, 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., Monday, November 7,
2022, a moment of silence was observed, after which the Commission and
public recited the Pledge of Allegiance to the Flag.
Present: Mayor Ken Johnson, Vice Mayor Willie German, Jr., Commissioners
Teresa Emory, Rebecca St.Clair, Rachel Gorman, Interim City Manager LeighAnn
Mikesell, City Attorney John Schrier, and City Clerk Ann Meisch.
Absent: Commissioners Eric Hood and Michael Ramsey
HONORS, AWARDS, AND PRESENTATIONS:
A. Presentation on Regional Transit Authority by Muskegon County
Bob Lukens, Community Development Director for Muskegon County, spoke
about the potential for a transit authority for Muskegon County. Muskegon
County has been in discussions with WMSRDC about the potential of a Transit
Authority. The County is seeking the appointment of a city representative to
attend meetings and participate in discussions.
Mayor Johnson suggested appointing LeighAnn Mikesell as the city
representative to participate in meetings and discussions regarding the
potential Transit Authority. A letter indicating her appointment will be sent.
PUBLIC COMMENT ON AGENDA ITEMS: No public comments were received.
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To Approve the minutes of the October 10, 2022
Worksession and October 11, 2022 Regular Meeting.
STAFF RECOMMENDATION: To approve the minutes.
C. Amendment to Marihuana Overlay District – Drive Thrus/Signs Planning
SUMMARY OF REQUEST: Staff-initiated request to amend Section 2331 of the
zoning ordinance to reduce signage restrictions on marihuana businesses and to
allow drive-thru marihuana facilities under certain conditions.
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After discussing the proposed ordinance at the Planning Commission meeting,
the board decided to slightly modify the proposal and request that all drive
thrus require a special use permit. The final language approved in the motion is
as follows:
Section 2331:
B. Grower, Excess Grower, and Processor Requirements:
1. Signage. Signage shall follow the regulations set forth by the underlying
zoning district.
C. Provisioning Center, Retailer, Microbusiness and Designated Consumption
Establishment Requirements:
4. Curbside/Drive Thru. Curbside delivery is allowed at all retail sale
locations with an approved site plan that does not impede traffic or
pedestrian safety. Drive thrus are allowed as a special use permitted under
the following conditions:
a. The underlying zoning designation must be B-2, B-4, MC, I-1, I-2,
or any Form Based Code designation/building type that allows for
drive thru businesses.
b. Drive-thru windows must be located on private property. Streets
and alleys may only be used for the movement of traffic and may
not be used for drive-thru vehicular stacking.
c. A traffic study must be performed showing anticipated number
of stacking spaces and where they would be located on site.
STAFF RECOMMENDATION: To approve the request to amend Section 2331
of the zoning ordinance to reduce signage restrictions on marihuana businesses
and to allow drive-thru marihuana facilities with the conditions listed as
proposed.
D. Landscaping RFP Public Works
SUMMARY OF REQUEST: Staff requests authorization to issue a request for
proposals to obtain pricing to transition a number of downtown landscaping
areas to private contract.
Staff has worked with the Downtown BID, DDA, Chamber of Commerce,
Lakeside BID and other stakeholders to develop the RFP that covers a wide
array of landscaping services currently provided through the City Parks
Department. There is a desire among the stakeholders to improve the level of
service being provided and a desire among city staff to free up staffing
resources that are currently expended for the services to improve service in
other areas of the city parks. Issuing the RFP will be the next step in exploring that
prospect by obtaining prices from interested firms to further inform future
decisions.
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The RFP proposes to obtain prices for nine (9) identified areas as follows, with
each area having a distinct scope of work and a proposed assigned cost share.
The baseline RFP proposes a 3-year contract with optional extensions for 4th and
5th year.
Western Avenue
Hackley Park
3rd Street (Midtown)
City Hall Grounds
Farmers Market Grounds
Shoreline Drive
Scatter Flower Pots/Planters
Citywide Irrigation Startup/Shutdown
Lakeside BID
Once bids are obtained for the work the responsible entities will reconvene to
review pricing and make a determination on future recommendations. Future
decision may have cost implications for the City, DDA, BID, and established care
funds at the Community Foundation; however there is no cost implications to
issue the RFP and obtain bids.
STAFF RECOMMENDATION: Authorize staff to issue the RFP for Landscaping
Services.
E. MDEGLE High Water Infrastructure Grant Public Works
SUMMARY OF REQUEST: Staff requests a resolution of support and commitment
of matching funds for submittal to MDEGLE through the 2023 High Water
Infrastructure Grant Program.
The Michigan Legislature appropriated $14.25 million to the Michigan
Department of Environment, Great Lakes, and Energy (EGLE) for a grant
program to provide infrastructure and planning grants that directly address the
impacts and vulnerabilities presented by severe weather events, with a focus on
projects that address flooding, coastline erosion, urban heat, and storm water
management.
Staff has identified restoration of the beach access at Kruse Park as a target for
this program. Staff has previously conducted community engagement on this
project and developed a master plan for the site that is available on our
website here – https://www.muskegon-mi.gov/cresources/Kruse-Park-Master-
Plan-compressed.pdf
Staff has prepared an application to pursue funds to support the work identified
in Phase 1 of the Master Plan as well as obtaining letters of support from our
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legislative contacts, the Muskegon Conservation District, WMSRDC, Beachwood-
Bluffton Neighborhood Association, and Disability Network of West Michigan.
If successful as drafted, the grant will provide $700,000 towards the project and
will require a commitment of matching cash/in-kind funds from the City in the
amount of $343,915.00 during the 23/24 fiscal year.
STAFF RECOMMENDATION: Approve the Resolution of Support and
Commitment of Matching Funds for the 2023 State High Water Infrastructure
Grant and authorize the Clerk to sign.
F. Roberts Street MDOT Agreement Public Works
SUMMARY OF REQUEST: Staff is requesting approval of a contract with MDOT for
the repaving of Roberts Street from Sherman Boulevard to Laketon Avenue, and
approval of resolution authorizing the Mayor and Clerk to sign contract.
This is the standard contract that governs construction contracts that use federal
funds and/or are administered through MDOT. The estimated cost of the project
is $1,046,811.25, with $371,340 of that being Category F Transportation Economic
Development Fund (TEDF) grant dollars. The reminder of $675,471.25 is
accounted for in the City’s FY22 Major Street fund capital budget. Of the
$825,000 budgeted for the project, $31,880.07 has been spent on engineering
and other design phase services.
The project will be bid this fall and begin construction in the spring; the exact
schedule is not known at this time but will be communicated to the businesses
and residents in the area once known.
AMOUNT REQUESTED: $675,471.25 AMOUNT BUDGETED: $825,000 Requested
$31,880.07 Expended
$793,119.93 Remaining
FUND OR ACCOUNT: 202 (Major Streets)
STAFF RECOMMENDATION: Approval of the Roberts Street MDOT Contract
and a resolution authorizing the DPW Director and Clerk to sign the contract.
H. LRS ARP Updated Construction Agreement Development Services
SUMMARY OF REQUEST: Staff is requesting that Commission amend the
construction and development agreement with Mr. Rubin Briggs, LRS Enterprises
to accommodate a Priority Related Investment Loan from the Community
Foundation for Muskegon County.
Mr. Briggs proved capable of working with the city during the Jackson Hill Infill
Housing Pilot where 2 homes on Leonard were constructed. Commission
awarded LRS Enterprises with an ARP agreement for 6 homes, with half the
money from ARP and the other half from the developer’s own financing. We
have found this to be a hardship for smaller, minority owned builders who do not
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have access to capital of some of our larger partners.
In an effort to be equitable and not let a systemic barrier to our own program
disqualify builders of color, staff has secured a Priority Related Investment Loan
from the Community Foundation for Muskegon County to cover Mr. Briggs’
$750,000 of the original contract. This would be a loan in the city’s name at
prime (5.5%) plus 2 percent interest with a .5% increase on January 1, 2023, and
would be paid back first as the homes sell. Any additional profits from sale would
go to the Public Improvement Fund. The updated Purchase Agreement reflects
this PRI which will return to the Commission for final approval and signatures. The
Act 99 Installment Purchase Agreement agenda item on this docket is a
precursor to the PRI approval.
AMOUNT REQUESTED: $750,000 AMOUNT BUDGETED: N/A
FUND OR ACCOUNT: (101) TO (404)
STAFF RECOMMENDATION: To accept the construction agreement as
presented and to authorize the Mayor and Clerk to sign.
I. LRS PRI Act 99 Installment Purchase Agreement Development Services
SUMMARY OF REQUEST: Staff is requesting the Commission authorize the
statutorily required Act 99 Installment Purchase Agreement and Resolution.
Public Act 99 of 1933 is a statute which allows municipalities to borrow funds for
real estate related endeavors. We have previously used this Act to partner with
the Community Foundation for Muskegon County on the Jackson Hill Infill Pilot.
The resolution covers the requirements laid out in the Act and has the
Agreement itself that is to be executed. This item is jointly presented for
consideration along with the Amended LRS Enterprises ARP Agreement.
STAFF RECOMMENDATION: To adopt the Resolution Authorizing the
Installment Purchase Agreement related to the Jackson Hill ARP Infill Housing
Project as presented, and to authorize the Mayor and Clerk to sign.
K. Sale of 1527 Hoyt Street City Manager
SUMMARY OF REQUEST: Staff is requesting approval of the purchase agreement
for 1527 Hoyt Street.
1527 Hoyt Street was constructed through the agreement with Dave Dusendang
to construct infill housing with ARPA funding.
STAFF RECOMMENDATION: To approve the purchase agreement for 1527
Hoyt Street.
Motion by Vice Mayor German, second by Commissioner St.Clair, to accept the
consent agenda as presented, minus items B, and G.
ROLL VOTE: Ayes: German, Gorman, Emory, St.Clair, and Johnson
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Nays: None
MOTION PASSES
2022-97 REMOVED FROM CONSENT AGENDA:
B. Arena Lease – Carlisle’s Arena Director
SUMMARY OF REQUEST: Seeking approval of the amended lease with Carlisle’s
at the Trinity Health Arena.
Amendment of Section 6 of the Agreement for Management of a Portion of a
Licensed Premises Pursuant to Participating Agreement.
To reflect the following:
Construction costs paid by Carlisle and/or reimbursed to the City of Muskegon in
the amount of $439,219.91, will result in a use credit to Carlisle at the rate of
$7.00 per month for each $1,000 of construction costs incurred together with
interest on the unreimbursed construction costs calculated at the rate of 5% per
annum. Any unused credit for the month shall roll over and be added to the
total available use credit in subsequent months. These credits shall continue
monthly for the term of this Agreement and any extensions thereof to and until
such time as the use credit is fully utilized and amortized.
In the original agreement the construction cost was $650,000. However, we are
reducing the credit costs by $210,780.09 due to construction overages by
Carlisle’s. Allowing Carlisle’s to utilize credit saves the City $279,259.64 in accrued
interest through 2040.
STAFF RECOMMENDATION: Approve the lease and authorize the Mayor and
Clerk to sign.
Motion by Commissioner St.Clair, second by Commissioner Gorman, to approve
the lease and authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: German, Gorman, Emory, St.Clair, and Johnson
Nays: None
MOTION PASSES
G. Trash Compactors Public Works/Parks
SUMMARY OF REQUEST: Staff requests authorization to sign a three-year lease
for 14 self-compacting trash receptacles at Pere Marquette and Margaret
Drake Elliot Parks.
These 50-gallon capacity, self-compacting units from Connect by BigBelly would
enhance the shoreline look and be one direct result of the paid for parking
benefit. Not only will the units look aesthetically pleasing as opposed to the
current metal open face cans, but with a fully enclosed system, less trash would
blow out of the units onto the beach.
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Current walkway pads allow for placement and not block those with ADA
needs. The units are sturdy in nature and can handle the winds and sands at the
beach location according to the manufacturer. The biggest goal with the three-
year lease period is to not only see how much the cans get used, but also to see
how the units stand up to the elements. We will have the ability to extend the
lease or purchase units at the end of the three-year period.
Local suppliers can provide liners for the units. The manufacturer does have a
subsidiary in Kentucky that can proved liners if need be. The units also provide
options to advertise or brand; staff is still discussing the pros and cons of this
option and will proceed carefully, if at all. The units do connect to the internet if
available, and will notify staff of the need for emptying and include usage data.
During the off season, roughly October through April, we have enclosed storage
available at Margaret Drake Elliot for the units. Depending on how
maneuverable they are and the installation needs, staff is considering locating
them downtown during the off season. The three-year lease provides annual
maintenance and troubleshooting, however placement of the units and
removal each season would depend on Parks staff. The units are large and
would require heavy machinery to move.
Staff has performed a financial comparison, and while these units are about
twice as expensive as traditional receptacles we calculate we will recoup that
cost and more by reducing the times they need to be emptied and reducing
litter cleanup in the area. The current budget includes $10,000 for these units.
The actual impact to this year’s budget will be approximately $4,549.11 (for
three months of lease payments). Future budgets will include for the exact lease
amounts per fiscal year.
AMOUNT REQUESTED: $4,549.11 (FY22) AMOUNT BUDGETED: $10,000 (FY22)
$54,589.32 (Over 3 years) $54,589.32 (total including future budgets)
FUND OR ACCOUNT: 101-770-762 (Parks)
STAFF RECOMMENDATION: Authorize staff to enter into a three-year lease
agreement with Connect by BigBelly for a total of $54,589.32 over three years for
14 self-compacting 50-gallon trash receptacles.
Motion by Commissioner Emory, second by Vice Mayor German, to authorize
staff to enter into a three-year lease agreement with Connect by BigBelly for a
total of $54,589.32 over three years for 14 self-compacting 50-gallon trash
receptacles.
ROLL VOTE: Ayes: German, Gorman, Emory, St.Clair, and Johnson
Nays: None
MOTION PASSES
2022-98 ANY OTHER BUSINESS:
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A. Sale of 206 Irwin Avenue City Manager
SUMMARY OF REQUEST: Staff is requesting approval of the purchase agreement
for 206 Irwin Avenue.
206 Irwin Avenue was constructed through the agreement with Dave
Dusendang to construct infill housing with ARPA funding. After signing the
purchase agreement, the buyer elected to update the purchase price and
seller concessions which equate to a net zero change in fund to the city.
STAFF RECOMMENDATION: To approve the purchase agreement and
amendment for 206 Irwin Avenue.
Motion by Commissioner St.Clair, second by Commissioner Gorman, to approve
the purchase agreement and amendment for 206 Irwin Avenue.
ROLL VOTE: Ayes: Gorman, Emory, St.Clair, Johnson, and German
Nays: None
MOTION PASSES
B. Sale of 291 McLaughlin City Manager
SUMMARY OF REQUEST: Staff is requesting approval of the purchase agreement
for 291 McLaughlin Avenue
291 McLaughlin Avenue is being constructed through the agreement with Dave
Dusendang to construct infill housing with ARPA funding. The home is under
construction with a planned cost of $235,000. The offer presented is for a sales
price of $172,500 with no seller concessions.
STAFF RECOMMENDATION: To approve the purchase agreement for 291
McLaughlin Avenue.
Motion by Commissioner St.Clair, second by Vice Mayor German, to approve
the purchase agreement for 291 McLaughlin Avenue, to be transferred by Quit
Claim Deed.
ROLL VOTE: Ayes: Emory, St.Clair, Johnson, German, and Gorman
Nays: None
MOTION PASSES
PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 6:31 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
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