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CITY OF MUSKEGON
WORKSESSION/CITY COMMISSION
MEETING
September 9, 2024 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
CALL TO ORDER
The Worksession/Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 PM, Monday, September 9,
2024. Mayor Johnson opened the meeting with a moment of silence, 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 Willie
German, Jr., Rachel Gorman, Katrina Kochin, Jay Kilgo, and Destinee Keener,
City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann
Marie Meisch
2024-79 HONORS, AWARDS, AND PRESENTATIONS
A. Recognize Joshua Fors - Michigan Sexton of the Year Manager's Office
The City Commission recognized Joshua Fors who has been honored with the
prestigious title of Michigan Sexton of the Year.
B. Regional Transit Authority Articles of Incorporation Manager's Office
Staff and a guest from the Muskegon Area Transit System will be presenting the
proposed Articles of Incorporation for the new regional transit authority. In
November 2023, the City Commission approved a resolution of intent to join
other municipalities in forming a regional transit authority. The first formal step
for the group is to establish Articles of Incorporation. The legislative body of
each member agency will need to approve the articles for the authority to
proceed forward with developing bylaws and seeking funding. Deputy City
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Manager LeighAnn Mikesell and Transit Systems Manager Jim Koens explained
the process to create a public transit authority in our community and answered
questions.
C. Port Development Conversation Manager's Office
Representatives from Mart Dock will present outlines of a proposal for port
development in Muskegon, which includes increased public access along the
eastern edge of Muskegon Lake and downtown. Several years ago, the City of
Muskegon and Mart Dock began discussions on the possibility of a "land swap"
between the two entities, which would include the property at Fisherman's
Landing (city property) and what's referred to as the Third Street Pier (Mart Dock
property). For various reasons, those conversations did not result in a deal.
Recently, City staff and the Mart Dock have again started these conversations,
but with a broader focus that looks at opening additional Muskegon Lake
access on the east side of the lake (a concept of areas that could be used for
east-side public access is available - no details have been finalized and this is
for conversation example only) and a complete picture of what downtown
access could look like from Terrace Point west to GVSU's AWRI facility (Mart
Dock will present on this concept Monday).
This conversation relates to the more extensive waterfront development
conversations that started following the City's completion of its master planning
process last year. Multiple parties are involved in these conversations, including
Muskegon County, WMSRDC, Parkland Properties, and the Muskegon Lakeshore
Chamber of Commerce.
A key part of this conversation is relocating the current Mart Dock port
operations to the Fisherman's Landing site and completely redeveloping the
Mark Dock into mixed uses with extensive public access. Mark Dock envisions
containerized operations on the Fisherman's Landing site.
A factor that has changed since the City's initial conversation with the Mart
Dock is the possibility of acquiring the Verplank Property to the east of
Fisherman's Landing and greatly expanding public access along the south
branch of the Muskegon River and out onto Muskegon Lake (this is often
referred to as an expansion of Richards Park because of its proximity to and
likely connection to Richard Park if the development were to occur).
Although many broad strokes are noted here and have been discussed, we're
closer to the beginning of this conversation rather than the end. There will be a
plan and opportunity for public feedback, especially as it relates to new access
along the east end of Muskegon Lake.
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If the City Commission is comfortable with what is discussed at this meeting, City
staff will begin drafting a formal agreement with Mark Dock that will formalize
the logistics of the process to possibly set up a land transfer between the two
parties and key milestones that will be inflection points. The objective is to
produce an agreement establishing a road map for how public access would
be maintained and increased and outline the City's commitment to actively
partner with Mark Dock in applying for Federal Port Development Grants. These
grants would be critical in financing any redevelopment of Muskegon's port.
Mart Dock will attend the meeting on Monday to present some of their ideas
and make some commitments about how they are willing to move the project
forward.
Key Topics for Discussion on Monday:
- Mart Dock's vision for its property in the future
- City staff discussing how public access on the east side of the lake could be
expanded to the public as a result of this development
- Mart Dock's ideas related to a port collaborative on Muskegon Lake and how
that could positively impact the community (and who, potentially, would be
included in that collaborative)
- Guarantees of additional public access at Third Street even if federal grants
are not successfully obtained
City Manager Jonathan Seyferth and Chuck Canestraight, President at Port City
Marine Companies, explained the item and asked the Commission for questions
and feedback.
D. Nelson House Purchase and Development Agreement Planning
Discussion on the Nelson House purchase and development agreement. Jamie
Pesch, Planner III, explained the request for bids process for the sale of the
Nelson House.
E. Short-Term Rental - Final Ordinance Presentation Manager's Office
Following feedback from the City Commission and the public, the staff has
updated the proposed STR Ordinance. In August, the staff presented a
proposed ordinance change focused on short-term rentals (STRs) in the City of
Muskegon. The proposed ordinance has been updated following feedback
from the City Commission and the public.
The staff still proposes separating the City into zones based on Federal Census
Tracts and capping STRs within each zone to 4% of the total housing stock. Staff
also recommends that the DDA and Lakeside BID districts be pulled out of these
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tracts to encourage short-term rentals in these zones. This will adjust the Lakeside
and North Nelson/Jackson Hill tract caps. Updated caps for each zone/tract
are available. I should note that by removing the Lakeside BID from the cap, the
Lakeside Tract went from having more STRs than the cap would allow to fewer
and opening up seven (7) additional licenses within that census tract.
Taking into consideration additional feedback, the staff is also recommending
that current properties with active STR licenses be able to be sold and have
their STR licenses transferred to the new owner - if the new owner can meet STR
application requirements. Additionally, the new owner must apply for their STR
license within 60 days of the purchase of their property, or they forfeit their right
to an STR license.
The staff plans to hold a special Planning Commission meeting the week of
September 16 to hold a public hearing on the STR ordinance and then bring the
ordinance to the City Commission for final consideration on October 8, 2024.
PUBLIC COMMENT ON AGENDA ITEMS
No public comments were made.
2024-80 CONSENT AGENDA
A. Approval of Minutes City Clerk
Approve minutes of the August 27, 2024, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
B. Nims Water Tower Cellular Antenna Lease Renewal Public Works
Staff requests authorization to enter into a 10-year lease renewal agreement
with up to 25 years of extension options with New Cingular Wireless PCS, LLC for
space on and near the Nims water tower for a cellular antenna and related
equipment. Commission authorized Maralat, LLC, a cellular antenna industry
consultant, to enter into negotiations on the City's behalf with AT&T for renewal
of their lease on the Nims water tower. Staff, legal counsel and Maralat have
been working with AT&T to finalize the terms of a lease extension and have
reached an agreement as presented in the lease agreement. The table below
summarizes the terms in both the prior lease and this proposed extension.
Component Prior Lease Proposed Renewal
Rental Rate $4,938.77 $4,850
Annual Escalation 3% 3%
Commencement Date N/A February 1, 2024
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Termination Date September 30, January 31, 2059
2018
Termination Fee (Initial 10-Year None 100% of Rent for 5 Years, then
Term) 50%
Equipment Upgrade Fee None $325 per Month Per New
Antenna
Administrative Signing Bonus None $7,500
The proposed lease is the same as the Marshall water tower extension included
on tonight's agenda. Although the rental rate is slightly decreased at the start
of the lease, Maralat ensures staff that it reflects the best available rates and
terms available to the City and the lease includes other items such as a
termination fee, an upgrade fee and an administrative signing bonus that make
the slight rent reduction less impactful overall, and the extension continues the
3% annual escalator.
STAFF RECOMMENDATION: Authorize staff to enter into a 10-year lease renewal
agreement with up to 25 years of extension options with New Cingular Wireless
PCS, LLC for space on and near the Nims water tower for a cellular antenna
and related equipment.
C. Marshall Water Tower Cellular Antenna Lease Renewal Public Works
Staff requests authorization to enter into a 10-year lease renewal agreement
with up to 25 years of extension options with New Cingular Wireless PCS, LLC for
space on and near the Marshall water tower for a cellular antenna and related
equipment.
Commission authorized Maralat, LLC, a cellular antenna industry consultant, to
enter into negotiations on the City's behalf with AT&T for renewal of their lease
on the Marshall water tower. Staff, legal counsel and Maralat have been
working with AT&T to finalize the terms of a lease extension and have reached
an agreement as presented in the lease agreement. The table below
summarizes the terms in both the prior lease and this proposed extension.
Component Prior Lease Proposed Renewal
Rental Rate $4,938.77 $4,850
Annual Escalation 3% 3%
Commencement Date N/A February 1, 2024
Termination Date September 30, January 31, 2059
2018
Termination Fee (Initial 10-Year None 100% of Rent for 5 Years, then
Term) 50%
Equipment Upgrade Fee None $325 per Month Per New
Antenna
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Administrative Signing Bonus None $7,500
The proposed lease is the same as the Nims water tower extension included on
tonight's agenda. Although the rental rate is slightly decreased at the start of
the lease, Maralat ensures staff that it reflects the best available rates and terms
available to the City and the lease includes other items such as a termination
fee, an upgrade fee and an administrative signing bonus that make the slight
rent reduction less impactful overall, and the extension continues the 3% annual
escalator.
STAFF RECOMMENDATION: Authorize staff to enter into a 10-year lease renewal
agreement with up to 25 years of extension options with New Cingular Wireless
PCS, LLC for space on and near the Marshall water tower for a cellular antenna
and related equipment.
D. Contract Award - 2024 Mill and Resurfacing Project Public Works
Staff requests approval to enter into a contract with Asphalt Paving Inc. in the
amount of $189,324.70 and to approve Change Order No. 1 in the amount of
$29,556 for a total award of $218,880.70 for the repaving work on Irwin Ave.,
Wood St., Beach St., Glen/McGraft Ave., and Allen Ave. Staff reviewed several
areas of major streets in poor condition and solicited bids for repaving the
following streets:
- Wood St.: From Irwin Ave. north to Spring St. (approx. 225').
- Irwin Ave.: From Approx. 300' west of Wood St. to approx. 330' east of Wood St.
- Beach Street: From the "fork" in the road near Margaret Drake Elliot Park
northerly approx. 1,125'
- Glen/McGraft: From Hackley Ave. to Addison St. (approx. 2,800').
- Allen Ave.: From Creston St. to Home St. (approx. 525').
City/DPW staff are planning to pave Allen Avenue, but the contractor will do
the preparatory work.
Asphalt Paving, Inc. (API) was the low bidder in the amount of $189,324.70, with
details shown on the bid tab. In addition to the award of the contract as
originally bid, staff is requesting authorization for approval of the Change Order
for an additional amount of $29,556.00 to increase the area to be milled on the
Glen/McGraft from Hackley Ave. to Addison St. by 1,960 SYD's and the amount
of paving by 250 tons of asphalt. Due to the favorable prices received, staff
would like to widen the area to be milled and paved on Glen/McGraft.
STAFF RECOMMENDATION: Authorize staff to enter into a contract with Asphalt
Paving Inc. in the amount of $189,324.70 and to approve Change Order No. 1 in
the amount of $29,556 for a total award of $218,880.70 for the repaving work on
Irwin Ave., Wood St., Beach St., Glen/McGraft Ave., and Allen Ave.
E. Amendment for Engineering Services - Olthoff Drive Extension Project
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Public Works
Hubbell, Roth & Clark, Inc. (HRC) performed the design and construction
engineering for the Olthoff Drive Extension project. They have requested an
additional $30,600 to be added to their contract with the City as described
herein. HRC provided Design and Construction Engineering services for the
Olthoff Drive Extension project. There were various additional services provided,
including redesigning the sanitary sewer location, adjusting the road grades to
minimize coordination with the neighboring prison, and construction duration
lasting 15 weeks versus the originally proposed 8 weeks. Construction was
originally planned to be completed during the 2021 construction season but
ended up being completed primarily in 2023 with the final paving completed in
2024. These changes were at the request of the primary tenant of the industrial
park expansion/road extension. These costs will be paid for by a combination of
MEDC grant funds, MDOT grant funds, and water/sewer funds. This is not a
specifically budgeted expense, but staff is confident the non-grant portions will
fit within the existing budgets. Staff recommends approval of the request.
STAFF RECOMMENDATION: Authorize staff to approve the requested
amendment from HRC, Inc. in the amount of $30,600.
F. Washwater Pump Replacement Valves DPW- Water Filtration Plan
Staff is requesting authorization to contract with Northern Boiler Mechanical
Contractors for valve replacements on two Washwater Pump’s located at the
City Water Filtration Plant. The Filtration plant has 3 washwater pumps that are
critical to the filtration process. These pumps allow us to wash the filters as they
build up filtered sediment, extending the life of the filter media by back-flushing
treated water through the filter media. Pumps #2 and #3 are original to the
1936 construction of the filtration plant, including their foot and isolation valves.
The "foot" valve sits down in the finished water reservoir at the point where the
washwater pump pulls water from the reservoir for washing. The foot valve on
washwater pump #3 has failed and needs replacement; currently washwater
Pump #3 is out of service, reducing the plant’s redundancy to properly operate
filters. The plan included with this item shows the foot valve and other proposed
work as detailed below.
Staff solicited bids for the replacement of washwater pump #3's foot valve. As
part of the bid process, staff requested an alternate bid to replace both foot
valves, on washwater pump #2 as well as #3. It is reasonable to assume the
washwater pump #2 foot valve is not far behind #3 in terms of failure. With the
extent of work needed, it makes the most economic sense to replace both at
the same time to ensure long service life for both pieces of critical infrastructure.
Furthermore, the addition of a check valve after the pump discharge as well as
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a replaced isolation valve were included in the pricing requested. The check
valve will prevent backwash water from flowing into the drinking water reservoir
in the event of a foot valve failure. The aging isolation valve has proven to be
difficult to operate and is in need of replacement, and with this project it can
be replaced in a location that will allow easy access for future repairs.
A proposal for bids was posted and 2 mechanical contractors bids were
received, Northern Boiler and Franklin Holwerda Company. Staff recommends
this project be awarded to Northern Boiler Mechanical Contractors for the work
described above based on their low bid and their experience with similar work.
The bid tab and other documents are included. This work fits within the filter
plant capital improvement budget, but it will need to take the place of other
work shown in the plan due to its urgency.
STAFF RECOMMENDATION: Authorize staff to contract with Northern Boiler
Mechanical Contractors for $155,729 to perform foot, isolation, and check valve
replacements at the Water Filtration Plant.
G. Request to amend the planned unit development (PUD) at 3400, 3460,
3474 Wilcox Avenue, 1875 Waterworks Road, and 1490 Edgewater Street
(the Docks). SECOND READING Planning
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 privately-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
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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
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.
7. That on-street parking, inclusive of handicap parking, be placed to the
north of the structural retaining wall at public road E's final northerly bend.
H. Rezoning of 349 W Webster Ave from Form Based Code, Urban
Residential (FBC, UR) to Form Based Code, Neighborhood Core (FBC,
NC). SECOND READING 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.
I. Rezoning of 1700 Oak Ave from Medical Care (MC) to Low-Density
Multiple Family Residential (RM-1). SECOND READING 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.
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STAFF RECOMMENDATION: I move to approve the rezoning of 1700 Oak Ave
from Medical Care (MC) to Low-Density Multiple Family Residential (RM-1).
Motion by Vice Mayor St.Clair, second by Commissioner Gorman, to approve
the Consent Agenda as presented.
ROLL VOTE: Ayes: Keener, Gorman, Kochin, St.Clair, and Johnson
Nays: None
MOTION PASSES
ANY OTHER BUSINESS
DPW Director Dan VanderHeide stated that on Laketon Avenue east of Seaway
there is a broken sewer lateral. Laketon will be closing, both directions, starting
September 10th.
PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.
ADJOURNMENT
The City Commission meeting adjourned at 8:10 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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