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CITY OF MUSKEGON
CITY COMMISSION MEETING
August 27, 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, August 27, 2024.
Pastor Adam Dollar from Evanston Avenue Baptist 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, Destinee Keener, Willie German, Jr., and Rachel Gorman, City Manager
Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch
Absent: Commissioner Katrina Kochin
PUBLIC COMMENT ON AGENDA ITEMS
No public comments were made.
2024-77 CONSENT AGENDA
D. 7th Amendment to Lumberjacks Agreement-Scoreboard Arena
Staff is requesting the Commission's approval for a new center hanging
scoreboard in Trinity Health Arena. The Arena Staff and Muskegon Lumberjacks
are seeking approval to purchase a new scoreboard and add it to the list of
items being addressed to re-negotiate in the 7th amendment. The 6th
amendment which approved the new construction called for some additional
things to be addressed in the Lumberjacks shared use agreement. Arena staff is
requesting to contribute $200,000 from the state MEDC RAP grant award to help
the Lumberjacks offset the total cost of the scoreboard. The Lumberjacks will
fund the balance of the project with a 7 year payback on rent credit starting in
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2027 at an interest rate of 5.25%. The current scoreboard is beyond its life
expectancy and we are no longer able to service the outdated technology.
STAFF RECOMMENDATION: Recommend the Commission allows the City to enter
into an agreement with the Lumberjacks to purchase a new center hung
scoreboard at the Arena.
F. Fluoride Contract Renewal - DPW Filtration Public Works
Staff is requesting approval to renew our current contract with Univar to supply
fluoride to the Water Filtration Plant. The Water Filtration Plant purchases water
treatment chemicals as part of a cooperative that includes six area
municipalities. The contracts and bidding processes are managed by the City
of Grand Rapids.
In 2023, the City of Grand Rapids issued public bid invitations to supply and
deliver fluoride (hydrofluorosilicic acid) on behalf of the consortium. Staff had
requested and was granted approval for Univar as the lowest bidder for the
delivery of fluoride for a one-year term with two, one-year renewal options. We
are currently at the end of our one-year contract and are requesting to renew it
for a second year (the first of the two renewal periods).
The Water Filtration Plant uses an average of 60 tons of fluoride annually. Under
the renewal contract with Univar, the estimated annual cost based on average
use will be $31,500 ($525/ton). An increase of $1,500 (+$25/ton) from the
previous contract. Fluoride purchases are included in the Water Filtration Plant
budget. Based on average use it is anticipated that no budget adjustments will
be required this fiscal year, however the actual amount spent will ultimately
depend on water usage.
STAFF RECOMMENDATION: To approve a one-year renewal of the contract with
Univar for the supply and delivery of fluoride at a cost of $550 per ton.
H. Modify MERS Defined Benefit (DB) Plan Adoption Agreement Finance
Modify MERS Defined Benefits Plan Adoption Agreement to lump sum payments
of Comp Time. MERS has requested the City to modify its plan to include comp
time payouts. In the past, it was coded as deferred overtime, which MERS
deems as comp time payout.
STAFF RECOMMENDATION: We recommend that the Commission adopts the
modification to all MERS Defined Benefits plans to allow lump sum payments of
comp time.
I. South PM Restroom & Kite Shack Improvements Award DPW- Parks
A public bid was posted on July 25th for the construction of a new restroom at
South Pere Marquette and improvements to the Kite Shack. The target cost was
$700,000, with a grant from the DNR covering $300,000 of that. CooperRock
Construction of Grand Rapids is the low bidder and recommended contract
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awardee for $602,049. CooperRock Construction, out of Grand Rapids,
submitted the low bid for the project, $602,049. Clifford Buck Construction, a
local City of Muskegon bidder (located at 500 Irwin), came in second with a bid
of $630,771. When the 2% local bidding adjustment was applied, Clifford Buck
was still about $16,000 higher.
It should be noted that we are receiving a state grant from the DNR. The DNR
does not recognize local bidding adjustments and requires the City (and any
grant recipients) to go with the low bidder. If we were to choose not to go with
the low bidder, the City would forfeit its DNR grant.
There are some additional project costs related to Consumers Energy moving a
utility pole that are not included in this final bid.
STAFF RECOMMENDATION: To award the Pere Marquette South Restroom & Kite
Shack Improvement project to CooperRock Construction for $602,049.
J. Rezoning of 349 W Webster Ave from Form Based Code, Urban
Residential (FBC, UR) to Form Based Code, Neighborhood Core (FBC,
NC). Planning
The Planning Commission unanimously recommended in favor of the request at
their August meeting. This property is the former location of the Muskegon Public
Schools Administration building. It has been privately owned since 2021. The
applicant is requesting a rezoning to allow the building to be converted into a
hotel, with retail and other mixed-uses. There were no public comments given at
the public hearing.
STAFF RECOMMENDATION: I move to approve the request to rezone the
property at 349 W. Webster Ave. from Form Based Code, Urban Residential to
Form Based Code, Neighborhood Core.
(REQUIRES SECOND READING)
K. Rezoning of 1700 Oak Ave from Medical Care (MC) to Low-Density
Multiple Family Residential (RM-1). Planning
The Planning Commission unanimously recommended approval of the request
at their August meeting. The property is the site of the former Muskegon General
Hospital and is still zoned MC, Medical Care. The site measures just under 26
acres. The applicant is seeking a rezoning to RM-1, Low-Density Multi-Family
Residential to allow for a 144-unit “work force” apartment development. The
plans include the demolition of the existing hospital buildings. The applicant
would utilize about 14 acres of the 26 acre site. The Planning Commission
recommended in favor of the rezoning and also approved the site plan,
contingent upon the City Commission approving the rezoning.
STAFF RECOMMENDATION: I move to approve the rezoning of 1700 Oak Ave
from Medical Care (MC) to Low-Density Multiple Family Residential (RM-1).
(REQUIRES SECOND READING)
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L. Acquisition of vacant buildable lots at 60 E Walton, 1192 Ambrosia, 456
McGlaughlin, 379 McLaughlin, and 1047 Wood Street Economic
Development
Development Services has been working with Rashard Thrower to acquire his
vacant properties with the intent to retain his firm Q9 Development, LLC to
construct affordable infill housing on the properties within the next 48
months. For three years staff have been working with Mr. Thrower to attempt a
housing infill project on these lots. Initially, the owner hoped to build and retain
affordable rental properties on the sites, but due to interest rate increases,
construction cost inflation, and the desire to keep rents low in his home
neighborhood that project concept became non-viable. Staff then worked with
Mr. Thrower to try to develop a "for-sale" project as we have done with other
builders that buy their lots and construct units, but again the prices needed to
generate any return and prevent losses on the project made the homes
unattainable for most folks in the community, and there was some concern that
a lack of comparable sales in these areas would prevent sales from going
through as well.
Finally, staff proposed to Mr. Thrower that the City could potentially acquire the
properties and then retain Mr. Thrower and a contractor partner to build on the
sites, as we have done for the ARP and Midtown phase projects. This would
allow us to build more economical models and keep them at affordable prices
while regaining losses through the Brownfield, while eliminating the risk to Mr.
Thrower were he to build on these lots privately.
The purchase agreement includes a 4-year exclusive right for Mr. Thrower to act
as the builder for the City on these properties. If we do not successfully
complete a residential construction project by then, the City is free to select any
other builder, sell the properties for private construction, or any other
reasonable option. It should be noted that a separate purchase agreement for
a property owned by Mr. Thrower on Peck Street will come to the Commission at
a later meeting, but it made sense to separate that one as it was formerly a gas
station and staff would like a longer due diligence period to conduct an
environmental site assessment.
STAFF RECOMMENDATION: To approve the Real Estate Purchase Agreement as
presented, and to authorize the Mayor and Clerk to sign.
Motion by Commissioner Keener, second by Commissioner Gorman, to adopt
the Consent Agenda minus items A, B, C, E, and G.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, and Gorman
Nays: None
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MOTION PASSES
2024-78 ITEMS REMOVED FROM THE CONSENT AGENDA
A. Approval of Minutes City Clerk
Approve minutes of the August 12, 2024, City Commission Worksession Meeting
and the August 13, 2024, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
Motion by Commissioner Kilgo, second by Commissioner Gorman, to approve
the minutes.
ROLL VOTE: Ayes: Gorman, St.Clair, Johnson, Kilgo, Keener, and German
Nays: None
MOTION PASSES
M. Request to Amend the Planned Unit Development (PUD) at 3400, 3460,
3474 Wilcox Avenue, 1875 Waterworks Road, and 1490 Edgewater Street
(The Docks) Planning (ITEM ADDED BY MAYOR)
The plans have been amended to develop around areas that have been
declared as established wetlands. There will be a total of 240 residential units
and a community building with retail/restaurant space. The Planning
Commission unanimously recommended approval of the amended PUD with
the following conditions:
1. The applicant receives a stormwater permit from the Engineering
Department.
2. All utility plans are reviewed and approved by the Engineering
Department.
3. Lane widths of streets are reduced to 9 or 10 feet subject to the
Engineering Department.
4. Bulb outs are eliminated on road A.
5. Road C will be connected back to road B.
6. The parking lot to the southern marina parking lot will be revised as
discussed.
7. Landscaping areas inside of parking areas and streets will be privately
maintained.
8. A public/private street map will be provided and describe the ownership
as discussed with all private/owned roadways being publicly accessible.
9. A landscaping plan is approved by the Planning Department.
Conditions 4, 5, and 6 have been addressed and reflected on the revised plans
in the packet.
STAFF RECOMMENDATION: To approve the request to amend the PUD with the
following conditions:
1. The applicant receives a stormwater permit from the Engineering
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Department.
2. All utility plans are reviewed and approved by the Engineering
Department.
3. Lane widths of streets are reduced to 9 or 10 feet subject to the
Engineering Department.
4. Landscaping areas inside of parking areas and streets will be privately
maintained.
5. A public/private street map will be provided and describe the ownership
as discussed with all privately-owned roadways being publicly
accessible.
6. A landscaping plan is approved by the Planning Department.
Motion by Commissioner Kilgo, second by Commissioner Gorman, to amend
the PUD to add an additional condition that on-street parking, inclusive of
handicap parking, be placed to the north of the structural retaining wall at
Public Road E’s northerly bend.
ROLL VOTE: Ayes: German, Gorman, St.Clair, Johnson, Kilgo, and Keener
Nays: None
MOTION PASSES (REQUIRES SECOND READING)
B. 30-Day Extension of the Short Term Rental Registration Pause Manager's
Office
This will extend the end date of the STR Pause from September 8, 2024, to
October 8, 2024. In March 2024, the City Commission put into place a pause on
Short Term Rental (STR) registrations. The pause is set to expire on September 8,
2024. Because the staff is still finalizing updated STR rules following Commission
feedback, extending the registration pause by 30 days is prudent to ensure the
new rules/ordinances are in place before the pause expires. The new expiration
date would be Tuesday, October 8, 2024. The objective would be to have the
Commission vote on an ordinance in early September 2024.
STAFF RECOMMENDATION: To extend the Short Term Rental Registration Pause
by 30 days, expiring on Tuesday, October 8, 2024.
Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to extend the
Short Term Rental Registration Pause by 30 days, expiring on Tuesday, October
8, 2024.
ROLL VOTE: Ayes: Keener, German, Gorman, St.Clair, and Johnson
Nays: Kilgo
MOTION PASSES
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C. Write Off of Loan to BoomTown Market, LLC Balance Economic
Development
We have an unpaid balance on our original Economic Development Revolving
Loan to BoomTown Market that must be written off per our auditor's guidance.
In April of 2019, the City received an application for a $55,000 loan from
Boomtown Market for furnishings for their grocery store concept. This loan
application was approved by the City Commission at their June 25, 2019,
regular meeting. By February of 2020, ownership of BoomTown requested to be
temporarily placed on interest only payments due to winter slowdowns, which
were later exacerbated by the Covid-19 pandemic. Sometime later the owner
ran into significant medical issues and decided to close, owing several lenders
and the landlord large sums ahead of our loan in position. This has resulted in
our inability to collect the remainder of the original loan. The total paid to the
City through the life of the loan is $13,933.12. The write off amount, inclusive of
unpaid interest, is $60,164.71.
STAFF RECOMMENDATION: Motion to write off $60,164.71 in unpaid debt owed
by BoomTown Market, LLC as presented.
Motion by Commissioner German, second by Vice Mayor St.Clair, to write off
$60,164.71 in unpaid debt owed by BoomTown Market, LLC as presented.
ROLL VOTE: Ayes: Kilgo, Keener, German, Gorman, St.Clair, and Johnson
Nays: None
MOTION PASSES
E. Rooftop Solar Lease Public Works
Staff requests approval to enter into a lease with Sunwealth LLC for space on
the Trinity Health Arena rooftop for the installation of photovoltaic solar energy
generation equipment. The solar system installed on the arena roof has been in
operation for nearly six months; however, in reviewing their files, the system
owner (Sunwealth LLC) realized that a lease, granting them the right to install
the system on the arena roof, had not been executed. Attorney's at Sunwealth
and Miller Canfield (on behalf of the City) worked to develop this lease and it is
presented to the Commission for approval. The term of the lease is concurrent
with the power purchase agreement (PPA) that governs the two parties' use
and maintenance of the system, which is for 25 years unless extended or unless
the City purchases the equipment earlier. This does not change any of the
particulars of the solar project, it simply allows the system to sit on the arena roof
as intended.
STAFF RECOMMENDATION: To authorize staff to enter into a lease with Sunwealth
LLC for space on the Trinity Health Arena rooftop for the installation of
photovoltaic solar energy generation equipment.
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Motion by Commissioner Kilgo, second by Commissioner German, to authorize
staff to enter into a lease with Sunwealth LLC for space on the Trinity Health
Arena rooftop for the installation of photovoltaic solar energy generation
equipment.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, and St.Clair
Nays: None
MOTION PASSES
G. Modify MERS Defined Contribution (DC) Plan Adoption Agreement
Finance
Modify MERS Defined Contribution Plan Adoption Agreement to lump sum
payments of Comp Time. MERS has requested the City to modify its plan to
include comp time payouts. In the past, it was coded as deferred overtime,
which MERS deems as comp time payout.
STAFF RECOMMENDATION: To adopt the modification to all MERS Defined
Contribution plans allowing lump sum payments of comp time.
Motion by Commissioner German, second by Commissioner Kilgo, to adopt the
modification to all MERS Defined Contribution plans allowing lump sum
payments of comp time.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, and Gorman
Nays: None
MOTION PASSES
ANY OTHER BUSINESS
City Manager Jonathan Seyferth commented on short-term rentals - carveouts
and transferability. Commissioner German Stated what a honor it was to attend
the Democratic National Convention as an elected District Delegate. Vice
Mayor St.Clair stated that August 26, 2024, was National Woman’s Equality Day.
Mayo Johnson thanked Commission, staff, and Neighborhood Associations for
the great National Night Out event at Marsh Field. Commissioner Kilgo
mentioned that the next City Commission Meeting will be combined with the
Worksession Meeting on Monday, September 9th, at 5:30 p.m.
PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.
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ADJOURNMENT
The City Commission meeting adjourned at 7:02 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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