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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 Page 1 of 9 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. Page 2 of 9 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. Page 6 of 9 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 Page 7 of 9 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 Page 9 of 9
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