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CITY OF MUSKEGON
CITY COMMISSION MEETING
July 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 p.m., Tuesday, July 9, 2024.
Pastor Jeff Helbert, from Grace Memorial Church, 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 Jay
Kilgo, Willie German, Jr., Rachel Gorman, and Katrina Kochin, City Manager
Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch
Absent: Commissioner Destinee Keener
2024-63 HONORS, AWARDS, AND PRESENTATIONS
A. Brand Presentation Community Engagement
Deborah Sweet, Community Engagement Manager; Don Kalisz, Kindred
Marketing Agency; and Community Champions reviewed the process and
presented the new brand recommendation for the City of Muskegon. This will
be voted for on the Consent Agenda.
PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.
2024-64 CONSENT AGENDA
A. Approval of Minutes City Clerk
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To approve minutes of the June 25, 2024, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
B. Brand Kit Community Engagement
Staff is requesting approval of the City of Muskegon brand kit. On October 24,
2023, the City Commission approved (6-0) a contract with Kindred Marketing
Agency to develop a new brand kit for the City of Muskegon and was
presented with a community engagement plan for the project.
Kindred Marketing Agency has created a brand kit to address the following
goals:
• Improve Muskegon’s image
• Stimulate economic development
• Unite the community through an inclusive process
• Develop a comprehensive citywide brand strategy and roll-out plan
• Create a dynamic new brand identity
• Demonstrate Muskegon’s connection and community
The current city logo was created decades ago and no brand guidelines,
brand story, or brand kit exist. In 2015, the city embarked on a rebranding
journey, and ultimately no consensus logo was selected. Currently, the City of
Muskegon uses variations of the old logo, individual department logos, random
colors and fonts, and the Watch Muskegon brand kit for city material.
Tonight, city staff, Kindred Marketing Agency, and community members
presented the brand kit to the Commission. Please review the "Rebranding the
City of Muskegon Connect Muskegon page" for more details on the project.
STAFF RECOMMENDATION: To approve the brand kit as presented.
C. Sale of 1518 Jiroch Planning
Staff is requesting approval of a purchase agreement for 1518 Jiroch for
$155,000. 1518 Jiroch was constructed through the agreement with Dave
Dusendang to construct infill housing with ARPA funding. The offer is over the full
listing price with no seller concessions.
STAFF RECOMMENDATION: To approve the Purchase Agreement for 1518 Jiroch
for $155,000 and authorize the Code Coordinator, Samantha Pulos, to sign.
D. Purchase of 1694 Pine Planning
Staff is requesting approval of a purchase agreement to buy 1694 Pine Street.
This lot will be added to the City's Infill Housing Program and city-wide
Brownfield. It is proximal to several other recent builds and future phase lots.
STAFF RECOMMENDATION: Approve the purchase agreement for 1694 Pine, for
$3,500, and authorize the Code Coordinator to sign.
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E. Rezoning of 1903 Marquette Ave from RM-1 to FBC, NC (SECOND
READING) Planning
Request to rezone 1903 Marquette Avenue from RM-1, Low-Density Multiple
Family Residential, to FBC-NC, Form-Based Code, Neighborhood Core, by the
County of Muskegon. This rezoning would help us achieve a goal from the
master plan, which is to "Create a community node at the intersection of
Marquette/Quarterline." The Planning Commission unanimously recommended
approval at their June 13th meeting.
STAFF RECOMMENDATION: To approve the request to rezone the property at
1903 Marquette Ave. from RM-1 to FBC, NC.
F. Water Supply System Bonds Series 2024 Finance
Ordinance authorizing the issuance of a Water Supply Junior Lien Revenue Bond
Series 2024. The bonds are expected to be sold to the Michigan Finance
Authority and payable in 20 annual principal installments at an interest rate of
2.0%. Bond closing is scheduled for August 28th. Estimated Principal Forgiveness
has yet to be determined.
STAFF RECOMMENDATION: To authorize the issuance of Water Sewer Supply
System Bonds, Series 2024 for an amount not to exceed $9,500,000.
G. Phase 2 Contract with MGT Manager's Office
Staff is seeking approval for the second phase of the contract with MGT to
review city policies for their impact on equity. Staff advertised a request for
proposals (RFP) in October 2023 with proposals due November 14. The GARE
Core Team recommended, and the commission approved the award of the
contract to MGT. The first phase included the review of internal policies and an
all employee survey. The second phase will include the review of external
policies and interviews with internal focus groups to determine strengths,
weaknesses, DEI understanding, and readiness to embrace and infuse DEI
through all levels of the organization.
Costs for phase 2 will be split over 2 fiscal years:
$40,312 in fiscal year 2024/25
$39,584 in fiscal year 2025/26
STAFF RECOMMENDATION: To approve the phase 2 contract with MGT and
authorize the Deputy City Manager to sign.
H. MML Workers' Compensation Fund Board Ballot Manager's Office
As a member of the Michigan Municipal League's (MML) Worker's
Compensation Fund, the City of Muskegon votes for the fund's board members.
The Commission must approve a slate of up to three candidates. The
Page 3 of 9
recommended slate of candidates include the following individuals:
First Term Recommendations:
• Victor Cardenas, City manager, City of Novi
• Daniel Coss, City Administrator, City of DeWitt
• Bridget Dean, Mayor, City of Berkley
STAFF RECOMMENDATION: Approve the MML Workers' Compensation Fund
Board of Trustees slate as presented and authorize the City Manager to sign.
J. NIMS Elevated Storage Tank Improvements Project Public Works
Authorize the award of the Nims Elevated Storage Tank Improvements project in
the amount of $336,499.00 to Fedewa Inc. of Hastings, MI. Our engineering
consultant Prein & Newhof solicited bids for the Nims Elevated Storage Tank
Improvements project that were received On June 11, 2024. This project was
included in our CWRF and CWSRF Project. The low bidder, Fedewa Inc.
submitted a bid price of $336,499.00 which is below the engineer's estimate. Our
engineering consultant, Prein & Newhof, has worked with Fedewa Inc. on other
similar projects and found their work to be acceptable.
This project is financed through the sale of bonds in partnership with the State of
Michigan Clean Water State Revolving Fund (DWSRF) program. The State
program offers grants and principal forgiveness for portions of the project cost.
We anticipate that when bonds are sold later this summer, we will be offered
grants and forgiveness worth 50% of the project cost. For this project, it is
estimated at $168,249.50 of aid. The remainder of the project will be financed
over 20 years at an interest rate of 2.0%.
The portion of the project that will be financed will be added to the water debt
fee. Staff estimates that when fully in effect in FY26, the sewer debt fee
associated with the project will be $0.03 per month on a standard residential bill.
STAFF RECOMMENDATION: To approve the award of the Nims Elevated Storage
Tank Improvements project to Fedewa, Inc. of Hastings, MI, contingent upon
successful financial arrangements with the CWSRF program, and authorize the
Clerk to sign the resolution.
Motion by Vice Mayor St.Clair, second by Commissioner German, to adopt the
Consent Agenda as presented minus items I, K, and L.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, German, Gorman, and Kochin
Nays: None
MOTION PASSES
2024-65 ITEMS REMOVED FROM THE CONSENT AGENDA
Page 4 of 9
I. Lead Service Lines Replacements Public Works
Authorize the award of the Lead Service Line Replacement, DWRF Project #:
7832-01 Contract to Gustafson HDD LLC of Whitehall, MI, and authorize the
Mayor and Clerk to sign the resolution. Our engineering consultant Prein &
Newhof solicited bids for lead service line replacements.
The low bidder Gustafson HDD LLC of Whitehall, MI has recently completed
similar work for the City of Muskegon, also overseen by Prein & Newhof. Their
bid of $5,489,560.00 and subsequent agreed upon pre-award change order in
the amount of $2,340,820.29 is below the engineer's estimate. Staff
recommends awarding to Gustafson HDD LLC on the basis of our and Prein &
Newhof's experience with them on similar projects.
Gustafson's bid was well below the engineer's estimate. Prein & Newhof worked
with the state to identify additional lead service lines that could be added to
the contract if the bids came in favorably. Therefore, we utilize more of the
principal forgiveness offered to the city. So staff is simultaneously requesting
approval of a change order of $2,340,820.29 to Gustafson's bid to increase the
contract cost to $7,830,380.29 and allow an additional 400 services to be
replaced in Oakview and Sheldon Park neighborhoods.
This project is financed through the sale of bonds in partnership with the State of
Michigan Clean Water State Revolving Fund. The State program offers grants
and principal forgiveness for portions of the project. We anticipate that when
bonds are sold later this summer, we will be offered grants and forgiveness
worth 50% of the project cost. For this project, that is estimated at $3,915,190.00
of aid. The remainder of the project will be financed over 20 years with a 2.0
interest rate.
The portion of the project that will be financed will be added to the water debt
fee. Staff estimates that when fully in effect in FY28 the sewer debt fee
associated with this project will be $0.70 per month on a standard residential bill.
STAFF RECOMMENDATION: Approve awarding of the Lead Service Line
Replacements, DWRF Project No. 7832-01 to Gustafson HDD contingent upon
successful financial arrangements with the CWSRF program, and authorize the
Clerk to sign the resolution.
Motion by Vice Mayor St.Clair, second by Commissioner German, to approve
awarding the Lead Service Line Replacements, DWRF Project No. 7832-01 to
Gustafson HDD contingent upon successful financial arrangements with the
CWSRF program, and authorize the Clerk to sign the resolution.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, German, and Gorman
Nays: None
MOTION PASSES
Page 5 of 9
K. Concur with CRC Recommendation to make Appointment to Planning
Commission City Clerk
To concur with CRC recommendation to appoint Lashae Simmons to the
Planning Commission as Citizen At-Large with a term ending January 31, 2027.
STAFF RECOMMENDATION: To appoint Lashae Simmons to the Planning
Commission as Citizen At-Large with a term ending January 31, 2027.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to appoint
Lashae Simmons to the Planning Commission as Citizen At-Large with the term
ending January 31, 2027.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and German
Nays: None
MOTION PASSES
L. Purchase of Tax Auction Properties Planning
Purchase of vacant lots and two houses from the County Lank Bank. Prior to the
August 15th , 2024 Tax Auction, the City has the opportunity to express interest in
vacant land and houses, to the County Land Bank. There are 2 addresses (1183
Pine and 1285 Langeland) with homes on them that will be developed by the
CNS Department with HOME funds and sold to buyers at or below the 80% AMI.
There are 10 vacant lots (1693 Elwood, 669 Jackson, 980 Williams, 428
McLaughlin, 561 Catherine, 645 Hill, 496 Octavius, 1643 Terrace, 999 Washington,
275 Myrtle) that will be used to help further infill housing goals. All properties
purchased will be for public purposes.
STAFF RECOMMENDATION: Authorize the Code Coordinator to proceed with the
purchase of the addresses in the letter of intent from the Muskegon County
Land Bank Tax Auction, 8/15/24.
Motion by Commissioner Kilgo, second by Commissioner Kochin, to authorize
the Code Coordinator to proceed with the purchase of the addresses in the
letter of intent from the Muskegon County Land Bank Tax Auction, 8/15/24.
ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
2024-66 PUBLIC HEARINGS
A. Establishment of a Commercial Redevelopment District - 280 W.
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Muskegon Ave. Economic Development
Pursuant to Public Act 255 of 1978, as amended, West Haven 280 LLC has
requested the establishment of a Commercial Redevelopment District. The
creation of the district will allow the building owner to apply for a Commercial
Facilities Exemption Certificate, which will freeze the taxable value of the
building and exempt the new real property investment from local taxes. West
Haven 280 LLC is requesting the establishment of a Commercial
Redevelopment District. This district must be approved in order to apply for a
Commercial Facilities Exemption Certificate.
West Haven 280 LLC are the owners and operators of 280 W. Muskegon Ave. This
facility will house many commercial businesses, such as Broadway Bootcamp
and Little Miss Green Thumb.
STAFF RECOMMENDATION: Close the public hearing and approve the resolution
establishing a Commercial Redevelopment District for 280 W. Muskegon Ave.
The Public Hearing opened to hear and consider any comments from the
public. Comments were heard from Mr. Bernhardt, the owner of the property.
Motion by Commissioner Kochin, second by Commissioner Kilgo, to close the
public hearing and approve the resolution establishing a Commercial
Redevelopment District for 280 W. Muskegon Ave.
ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
B. Issuance of a Commercial Facilities Exemption Certificate - West Haven
280 LLC Economic Development
Pursuant to Public Act 255 of 1978, as amended, West Haven 280 LLC has
requested the issuance of a Commercial Facilities Exemption Certificate. The
certificate will freeze the taxable value of the building and exempt new real
property investment from local taxes. The company will be investing over
$1,050,000 in the building and will create 22 new jobs, which qualifies them for
an abatement of 4 years. West Haven 280 LLC will rehab the 11,500 sq. ft.
facility starting in July 2024. The total real property investment will be
$1,050,000 and will create 22 new jobs.
West Haven 280 LLC recently purchased 280 W. Muskegon Ave from Central
United Methodist Church. This will change this building to commercial use, which
will create taxable value. This building will house several family businesses,
including Little Miss Green Thumb, Broadway Bootcamp, and Heal from Within. It
will also house a performance venue, coffee shop, immersive play area, and
additional lease space.
Staff Comments: The Commercial Redevelopment District is scheduled for
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public hearing and approval for July 9th by the City Commission. The resolution
is included in the agenda packet.
The Internal Tax Committee reviewed the applicant's project on June 26, 2024,
and based on their findings and calculations, the committee suggests approval
of the attached resolution for a term of 4 years for real property. The company
has turned in all necessary documents.
STAFF RECOMMENDATION: Close the public hearing and approve the resolution
granting a Commercial Facilities Exemption Certificate for a term of 4 years for
real property to West Haven 280 LLC and to authorize the Mayor and Clerk to
sign.
The Public Hearing opened to hear and consider any comments from the
public. Comments were heard from Theresa Bernhardt who will be operating in
the building.
Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to close the
public hearing and approve the resolution granting a Commercial Facilities
Exemption Certificate for a term of 6 years for real property to West Haven 280
LLC and to authorize the Mayor and Clerk to sign.
ROLL VOTE: Ayes: Johnson, Kilgo, German, Gorman, Kochin, and St. Clair
Nays: None
MOTION PASSES
2024-67 ANY OTHER BUSINESS
Judith Hayner, Director of Muskegon City Public Art Initiative, presented new art
instillation.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the
art instillation at Marsh Field.
ROLL VOTE: Ayes: Kilgo, German, Gorman, Kochin, St.Clair, and Johnson
Nays:
MOTION PASSES
Commissioner Kochin announced the Planning Commission will be discussing
Dock Development on July 11th; July 16th meeting at Hartshorn Marina is from
4:30-6:30 p.m.; and the July 16th Pooch Parade is at McGraft Park, 6-9 p.m.
PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.
2024-68 CLOSED SESSION
Page 8 of 9
A. Discuss Pending Litigation and Attorney Client Privileged Information
Finance
Motion by Vice Mayor St.Clair, second by Commissioner , to go into closed
session to discuss material exempt from disclosure under the attorney-client
privilege, MCL 15.243(1)(g), pursuant to MCL Section 8(h) of the Open Meetings
Act and Section 8(e) of the Open Meetings Act to discuss trial or settlement
strategy with legal counsel in connection with the Joe Hathorn v. City of
Muskegon lawsuit pending in Muskegon County Circuit Court because
discussion on the open record will have a detrimental financial effect on the
litigating or settlement position of the City of Muskegon and its employees and
officials.
ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson,and Kilgo
Nays: None
MOTION PASSES
Motion by Commissioner German, second by Commissioner Kilgo, to go into
open session.
ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and German
Nays: None
MOTION PASSES
Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to follow the
advice from counsel regarding settlement of the Joe Hathorn v. City of
Muskegon lawsuit pending in Muskegon County Circuit Court.
ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, German, and Gorman
Nays: None
MOTION PASSES
ADJOURNMENT:
The City Commission Meeting adjourned at 8:35 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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