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CITY OF MUSKEGON CITY COMMISSION MEETING January 9, 2024 @ 5:30 PM MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 MINUTES CALL TO ORDER The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 PM, Tuesday, January 9, 2024. Pastor Russell Damm, OakCrest Church of God, opened the meeting with prayer, after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL Present: Mayor Ken Johnson, Vice Mayor Rebecca St.Clair, Commissioners Destinee Keener (left at 7:00 p.m.), Katrina Kochin, Rachel Gorman, Rebecca St.Clair, and Jay Kilgo. City Manager Jonathan Seyferth, City Attorney John Schrier, City Clerk Ann Marie Meisch, and Deputy City Clerk Kimberly Young. HONORS, AWARDS, AND PRESENTATIONS A. Fire Department 150th Anniversary Recognition Manager's Office The Muskegon City Fire Department has been in service for 150 years. Tonight we celebrate our firefighters and the Fire Department's 150th anniversary. Mayor Johnson and City Manager Jonathan Seyferth presented each Fire Deparment staff person in attendance with a Certificate of Appreciation and Service and a commemorative badge. Names of current Fire Department staff were read by Vice Mayor St.Clair. The on-duty firefighters in attendance had to leave almost immediately, before being recognized and presented with their certificates and commemorative badges, to respond to a call. B. Audit Presentation-ACFR by Brickley Delong Finance Ken Grant, Finance Director, introduced Eric VanDop to summarize the Annual Page 1 of 8 Financial Comprehensive Report for FY 2023, following the audit performed by Brickley DeLong. Mr. VanDop presented information from different areas of the AFCR, providing an overview and explanation of the city's financial position. PUBLIC COMMENT ON AGENDA ITEMS No public comments were received 2024-08 CONSENT AGENDA Motion by Commissioner German, second by Vice Mayor St.Clair, to accept the Consent Agenda as presented, except items D, F, G, H, and J. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and German Nays: None MOTION PASSES A. Approval of Minutes City Clerk To approve the minutes of the December 11, 2023 Worksession, December 12, 2023 Commission Meeting, December 19, 2023 Special Meeting, and January 3, 2024 Organizational Meeting. STAFF RECOMMENDATION: Approve the minutes. B. Sanitary Sewer Easement - 381 E Laketon DPW- Engineering Staff is requesting approval of an easement between the owners of 381 E Laketon (Midwest V, LLC) and the City of Muskegon. The City's sanitary sewer main runs east to west along the south edge of 381 E Laketon. Originally, it was within an alley. The alley was vacated years ago. Recent development of the property, re-building of the Dollar General, has prompted cleaning up legal rights to maintain the sewer. Easement documents have been prepared and signed by owners. Documents have been reviewed and accepted by John Schrier. STAFF RECOMMENDATION: To approve the easement as presented and authorize the Mayor to sign the easement with Midwest V, LLC. C. Storm Water Maintenance Agreements DPW- Engineering Staff seeks authority to sign Storm Water Maintenance Agreements when submitted in accordance with the City's Storm Water Ordinance. Per the City’s Storm Water Ordinance, developments are required to submit post construction documents, one of which is a Storm Water Maintenance Page 2 of 8 Agreement. The agreement requires the property owner to maintain the private storm water system and allows the City to enforce maintenance if the property owner fails to do so. The agreement is needed because the private system leads to the public system, and a failure to maintain the private system could negatively impact the public system or the waters that the systems eventually drain to. The agreement is required to be recorded at the County Register of Deeds office and runs with the property. The general format of these agreements has been reviewed and is acceptable to the attorney's office, and these agreements are required by the State of Michigan under the City's MS4 stormwater permit. Due to the number of agreements required each year (approximately one per month), the fact that each agreement follows the same approved format, that the agreements are only required on properties that follow the Site Plan Approval process (including the public notifications and Commission action that may be required under that process), and that the agreements are required both by City ordinance and the City's state-required storm water permit, staff requests permission to enter into these agreements. An example agreement is included for reference. STAFF RECOMMENDATION: Approve the DPW Director, City Engineer, or Assistant City Engineer to sign Storm Water Maintenance Agreements when submitted in accordance with the City's Storm Water Ordinance. This approval shall remain in place until the SWM Agreement is updated/changed. E. Sale of 720 Leonard Avenue - REMOVED PER STAFF REQUEST Manager's Office I. Placement of Public Benches City Clerk Tony Asmus recently purchased the agreement for the placement of the public benches from Howell Sign Co. LLC. Staff has been working with the new owner and is recommending approval of the new agreement. The agreement would be for five years, and the cost would be $6 per month per bench. Currently, there are 40 benches. Staff could work with the owner on the location and the number of benches allowed. STAFF RECOMMENDATION: Approve the agreement with Gus Benches Advertising. K. Amendment to the Sign Ordinance Planning Staff initiated request to amend the form based code section of the zoning ordinance to modify the regulations on projecting signs downtown. The Planning Commission unanimously recommended approval of the amendment by a 6-0 vote. Page 3 of 8 STAFF RECOMMENDATION: To approve the request to modify the regulations on projecting signs downtown as presented. L. Comcast Franchise Agreement Manager's Office The City's cable TV franchise agreement with Comcast has expired and needs to be renewed. The City has 30 days from when Comcast submits the agreement for renewal to approve the replacement agreement. Staff is recommending a renewal of the franchise agreement without any changes to the fees collected by the city. The agreement is for ten (10) years. Following legislation adopted by the State of Michigan in the mid-2000s, the negotiation of franchise agreements at the local level was largely standardized, and not much flexibility was left to the communities beyond setting the franchise fee. The City of Muskegon currently has a 5% franchise fee that is paid by Comcast customers and passed on to the City. These funds can be used at our discretion. The City is not recommending any changes to the franchise fee rate. It should also be noted the City could, but has historically elected not to, implement a Public Education Government (PEG) fee in addition to the franchise fee. PEG fees can only be used for the support of equipment for public access television. STAFF RECOMMENDATION: Approve the Uniform Video Service Franchise Agreement with Comcast as presented. 2024-09 REMOVED FROM CONSENT D. Rezoning of 1993 Austin St Planning Request to rezone the property at 1993 Austin St from B-4, General Business to R- 2, Single-Family Medium Density Residential, by Derek Masterman. The Planning Commission unanimously recommended approval of the rezoning at their December 14 meeting. STAFF RECOMMENDATION: To approve the request to rezone the property at 1993 Austin St from B-4, General Business to R-2, Single-Family Medium Density Residential. Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the request to rezone the property at 1993 Austin St from B-4, General Business to R- 2, Single-Family Medium Density Residential. Page 4 of 8 ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener Nays: None MOTION PASSES F. Sale of 159 McLaughlin Ave. Planning Staff is requesting approval of a purchase agreement for 159 McLaughlin for $179,000. 159 McLaughlin was constructed through the agreement with Dave Dusendang to construct infill housing with ARPA funding. The offer is over the full listing price with the seller to contribute 6% of purchase price towards buyers closing costs, pre paids and discount points. STAFF RECOMMENDATION: Approve the purchase agreement for 159 McLaughlin. Motion by Commissioner Kilgo, second by Commissioner German, to approve the purchase agreement for 159 McLaughlin. ROLL VOTE: Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES G. DDA Liquor License – Muskegon Brewing Company, 1204 W Western Ave Economic Development Muskegon Brewing Company is requesting a Downtown Development Authority On-Premise Liquor License for the building at 1204 W Western Ave. The Liquor Control Commission allows for additional liquor licenses within Downtown Development Authority Districts under certain conditions. STAFF RECOMMENDATION: Approve the request for a Downtown Development Authority On-Premise Liquor License for Muskegon Brewing Company at 1204 W Western Ave. Motion by Commissioner Kilgo, second by Commissioner Gorman, to approve the request for a Downtown Development Authority On-Premise Liquor License for Muskegon Brewing Company at 1204 W Western Ave. ROLL VOTE: Ayes: Kilgo, Keener, German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES Page 5 of 8 H. Amendment to the zoning ordinance - residential units in previously existing commercial buildings Planning Staff initiated request to amend Section 401 of the zoning ordinance to allow multi-family residential units in previously existing commercial buildings not already converted to residential in single-family zoning districts, as a special use permitted. The Planning Commission unanimously recommended approval of the request at their December meeting. STAFF RECOMMENDATION: Approve the request to amend Section 401 of the zoning ordinance to allow multi-family residential units in previously existing commercial buildings not already converted to residential in single-family residential districts, as a special use permitted. Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the request to amend Section 401 of the zoning ordinance to allow multi-family residential units in previously existing commercial buildings not already converted to residential in single-family residential districts, as a special use permitted. ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES J. Filter Plant Tower Lease Changes Public Works Staff requests authorization to enter into a lease with “Muskegon Cellular Partnership By: Cellco Partnership d/b/a Verizon Wireless” to grant Verizon space on the City’s cellular tower at the water filtration plant. In early 2021 Commission authorized the construction of a cellular communications tower at the water filtration plant in the hope of spurring cellular companies to provide better service in the extreme western part of the City, including the beach. Since that time, staff has been working with Maralat Communications to entice a cellular provider to locate on the tower. In late September of last year, the Commission approved a lease agreement for the antenna. Since then, Verizon has proposed new lease terms. The changes include: • A reduction in monthly rent from $3,500 to $2,750. • An extension of the first term from 5 years to 10 years, which brings the total term, including extensions, to 30 years from 25 years. • The addition of a penalty if Verizon cancels during the first 10-year term, the penalty being one year's full rent. • The other terms, including the 2% annual escalator, remain unchanged. Page 6 of 8 While the net income to the water fund is slightly reduced ($1,345,273 previously, now $1,338,747 for a reduction of $6,526), the total term of the agreement is extended and the income from the first 10-year term is more secure. The need for service in this part of the community is still high, so staff recommends approval of the revised agreement. STAFF RECOMMENDATION: Approve the presented lease with Muskegon Cellular Partnership by: Cellco Partnership d/b/a Verizon Wireless, and authorize the Mayor to sign. Motion by Vice Mayor St.Clair, second by Commissioner Keener, to approve the presented lease with Muskegon Cellular Partnership by: Cellco Partnership d/b/a Verizon Wireless, and authorize the Mayor to sign. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Gorman, Kochin Nays: None MOTION PASSES 2024-10 NEW BUSINESS A. City of Muskegon Code of Ethics Manager's Office The City Commission had requested staff draft a code of Ethics. Upon investigation, it was discovered that more than 10 years ago the City Commission had adopted a Code of Ethics for the City. That Code is recommended to be readopted by each commission going forward. STAFF RECOMMENDATION: Readopt the City of Muskegon Ethics Policy as presented. Motion by Vice Mayor St.Clair, second by Commissioner Keener, to readopt the City of Muskegon Ethics Policy as presented. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and Gorman Nays: None MOTION PASSES B. Lakeside Business Improvement District Board - City Manager/Designee Manager's Office The City Manager sits as a representative on the Lakeside Business Improvement District (BID) Board. I am requesting the Commission to update the appointment Page 7 of 8 language to the City Manager or their designee. When the Lakeside BID was created, one of the board seats was intended for the City Manager. Because of meeting times, it can be a challenge for the City Manager to attend the meeting, which can create an issue with a quorum. The City Manager is asking that the City staff representative to the Lakeside BID be given a bit more flexibility to be the City Manager or their designee. STAFF RECOMMENDATION: Appoint the City Manager or their designee to the Lakeside BID board. Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to appoint the City Manager or their designee to the Lakeside BID board. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson,Kilgo, and German Nays: None MOTION PASSES PUBLIC COMMENT ON NON-AGENDA ITEMS Public comments received. ADJOURNMENT Motion by Commissioner German, second by Commissioner Kilgo, to adjourn at 7:05 p.m. MOTION PASSES Respectfully Submitted, Ann Marie Meisch, MMC Page 8 of 8
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