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CITY OF MUSKEGON CITY COMMISSION MEETING December 10, 2024 @ 5:30 PM MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 MINUTES 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, December 10, 2024. Pastor Apollo McCullough from Port City 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, Rachel Gorman, and Katrina Kochin, City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch Absent: Commissioners Willie German, Jr., and Destinee Keener PUBLIC COMMENT ON AGENDA ITEMS Public comments received. 2024-100 CONSENT AGENDA A. Approval of Minutes City Clerk To approve minutes of the November 26, 2024, City Commission Meeting. STAFF RECOMMENDATION: Approval of the minutes. B. Sale of 1221 Sanford Planning Staff is seeking authorization to sell the vacant lot at 1221 Sanford to Kara Novak (Orangefin Properties LLC). Kara Novak (Orangefin Properties LLC) would like to purchase the vacant buildable lot at 1221 Sanford for $4,125 (75% of the True Cash Value of $5,500) plus half of the closing costs and the fee to register the deed. Kara Novak (Orangefin Properties LLC) will be constructing a single-family home on the property. The County traded the City this address after selling us 1694 Pine in error, which was already part of a development agreement with Allen Edwin Homes. Page 1 of 10 STAFF RECOMMENDATION: Authorize the Code Coordinator to complete the sale of 1221 Sanford, as described in the purchase agreement, and to have the Mayor and Clerk sign both the purchase agreement and the deed. C. Resolution Designating a Portion of Western Avenue as "L.C. Walker Way" in Honor of Louis Carlisle Walker Manager's Office This resolution proposes designating a portion of Western Avenue as "L.C. Walker Way" in honor of Louis Carlisle Walker, co-founder of the Shaw-Walker Company. L.C. Walker significantly influenced Muskegon's industrial growth, economic development, and cultural life. His philanthropic efforts include contributions to the Hackley Art Gallery and the creation of the L.C. Walker Arena, integral to the City's community and entertainment landscape. The designation, covering Western Avenue between Division and Franklin Streets, adds an honorary title without changing official addresses. Signage will commemorate his contributions, symbolizing his enduring legacy in Muskegon's history and civic identity. STAFF RECOMMENDATION: To approve the resolution to designate a portion of Western Avenue as "L.C. Walker Way" in honor of Louis Carlisle Walker. D. MDNR Urban & Community Forestry Grant Public Works Staff seeks authorization to enter into an agreement with the West Michigan Shoreline Regional Development Commission (WMSRDC) for administration of a $225,000 MDNR forestry grant on behalf of the City. Staff worked with WMSRDC to apply for a forestry grant that will provide a complete inventory of all publicly-owned trees within the City. The data will include location, species, condition, a photo and more. The data will be presented to the City in a software system that will integrate with DPW's asset management and GIS software, and will recommend actions that will improve the health of each tree, or will recommend removal of a tree if necessary. WMSRDC will manage the grant, and the agreement sets up the framework for that to happen. The grant is exclusively for the City of Muskegon, however WMSRDC's environmental programs staff has more experience applying for and managing grants of this type. The grant also includes a limited amount of tree removals and plantings, which City staff will perform in concert with WMSRDC's management. The City's staff and equipment time (worth $43,500) is the only match necessary, which will be accommodated within the department's budget. STAFF RECOMMENDATION: Authorize staff to enter into an agreement with the West Michigan Shoreline Regional Development Commission (WMSRDC) for administration of a $225,000 MDNR forestry grant on behalf of the City. E. Ordinance Change: Parental Responsibility Ordinance Public Safety Page 2 of 10 The City of Muskegon's Parental Responsibility Ordinance needs to change its definition of juvenile from under the age of 17 years to under the age of 18 years to follow State of Michigan law. In 2021, in accordance with the Michigan Juvenile Justice Reform Act of 2018, the definition of juvenile changed from age 17 and under to 18 and under in MCL Section 712A.1. STAFF RECOMMENDATION: I move to change the definition of minor in the City of Muskegon's Parental Responsibility Ordinance from any juvenile under the age of 17 to any juvenile under the age of 18. F. Cost of Living Adjustment - Non-Union Employees Manager's Office At the end of the calendar year, management recommends an adjustment to non-union wages. Union wage adjustments are planning through their various contracts. The administration recommends a 3.3% cost-of-living adjustment (COLA). This COLA is consistent with US Bureau of Labor Statistics (BLS) data, which shows that as of mid-November 2024 (the period for which information is most recently available), inflation was 3.3% for the Midwest region compared to a year ago (BLS report follows this memo). STAFF RECOMMENDATION: I move to approve the 3.3% wage increase for non- union team members effective January 1, 2025. G. Non Union Part Time & Limited Term Wage Matrix Employee Relations Each year we update the Part-time and Limited-term Wage Matrix for the upcoming year. STAFF RECOMMENDATION: Approve the recommendations for the 2025 Part- time and Limited-term Wage Matrix. H. Rezoning of 1095 3rd St from B-2 to FBC, NC. SECOND READING Planning Staff initiated request to rezone a portion of 1095 3rd Street from Convenience Comparison Business (B-2), to Form Based Code, Neighborhood Core. The City of Muskegon recently sold the former “Catholic Charities” property at the corner of 3rd/Houston. The developer plans to rehab the existing building into apartments and to also add additional residential units, such as rowhouses, on the vacant portion of land along Houston Ave. The portion of the property that contains the existing building is zoned Form Based Code, Mainstreet. Staff is proposing to rezone the current B-2 portion of the property to Form Based Code, Neighborhood Core. Staff believes this zoning designation would allow the most flexibility for different types of housing units, as the addition is still being designed. Page 3 of 10 The Planning Commission unanimously voted (7-0, 2 absent) to recommend approval of the rezoning. STAFF RECOMMENDATION: I move to approve the request to rezone the property at 1095 3rd St from B-2, Convenience and Comparison Business to Form Based Code, Neighborhood Core. K. Mutual Aid Box Alarm System Public Safety The City of Muskegon Fire Department would like to enter into the interlocal agreement with the Muskegon County Mutual Aid Box Alarm System (MABAS) Division 3602. As was discussed during the Legislative Policy Committee meeting on Monday, Dec. 2, the Mutual Aid Box Alarm System (MABAS) is a statewide mutual aid agreement that covers liability and authority to receive and provide mutual aid to other Fire Departments that have signed the MABAS Agreement. These department resources that come from across the state or in the neighboring community. Through mutual aid, MI-MABAS has the capability to provide emergency response locally or statewide when lives, property or the environment is threatened by man-made, technological or natural disasters or emergencies by deploying fire resources, emergency medical services, technical rescue teams, hazardous materials teams and other special rescue operations needed and requested by the host/stricken community. There are currently 13 fire departments in the Muskegon County MABAS Division 3602. STAFF RECOMMENDATION: I move to have the Mayor and the City Clerk sign the resolution for the City of Muskegon Fire Department to participate in the Muskegon County Mutual Aid Box Alarm System Division. L. Emergency Sewage Pump & Haul Public Works Staff is requesting retroactive authorization to pay for sewage pumping and hauling services provided by West Michigan Septic, Sewer & Drain at the Muskegon Correctional Facility site. The Muskegon Correctional Facility (MCF) on Sheridan Drive has a sewer pump station that pumps the facility’s sewage into the City’s sewer mains. A 1971 agreement required the State to pay for the construction of the sewer pump station, and it also required the City to maintain the pump station at its expense. A 2016 assessment found this station to be deteriorating and undersized. The City began pushing the State to build a new pump station, and construction finally began this fall. According to the current construction schedule, the new pump station should be completed within the next month. Page 4 of 10 Unfortunately, the existing pump station suffered a catastrophic failure on the morning of December 1. An emergency pump and haul operation was immediately implemented to keep the MCF operational. West Michigan Septic, Sewer & Drain provided two trucks with staff to remove and haul sewage around the clock for 57 hours. The pump and haul operation was ended upon the installation of a temporary pumping system. Staff is requesting retroactive authorization to pay the invoice from West Michigan Septic, Sewer & Drain for $30,825.00. STAFF RECOMMENDATION: Authorize staff to pay West Michigan Septic, Sewer & Drain $30,825.00 for emergency sewage pumping and hauling services. N. 880 First St. Demolition- Asbestos Abatement Proposal Economic Development City staff requests approval of Asbestos Abatement Inc.'s proposal for asbestos abatement to proceed with the approved demolition of the 880 First St. structure. The City of Muskegon solicited bids from qualified contractors for the demolition of the building located at 880 First St., Muskegon, MI 49440. The scope of work includes complete demolition and removal of the structure, including all foundations and footings, backfilling the site, hydroseeding, and asbestos abatement. The primary objective is to eliminate blight, improve the area's aesthetic appeal, and encourage economic development by preparing the site for future opportunities. Asbestos Abatement Inc. was awarded the bid by the City Commission on October 8, 2024. They have completed an asbestos survey, and the report is available for your review. To proceed with demolition, asbestos abatement must be completed. Asbestos Abatement Inc. has submitted their abatement proposal, which is also available for your review. Scope of Work • Removal and disposal of asbestos-containing materials as identified in the NESHAP survey dated 11/25/24. • Required personal air monitoring and clearances included. • Continuous third-party air monitoring is not included. • State notifications and permits included. Total Cost: $94,125 STAFF RECOMMENDATION: I move to approve the asbestos abatement proposal submitted by Asbestos Abatement Inc. for the property located at 880 First St., Muskegon, MI 49440, in the amount of $94,125. O. Concur with CRC Recommendations to Accept Resignations and Make Appointment City Clerk Page 5 of 10 To concur with the Community Relations Committee recommendation to accept the resignation of Barry Williams from the Housing Commission and to appoint Jesse De Los Santos. STAFF RECOMMENDATION: Concur with the Community Relations Committee recommendation to accept the resignation of Barry Williams from the Housing Commission and to appoint Jesse De Los Santos. Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to approve the Consent Agenda minus Items I, J, and M. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Gorman, and Kochin Nays: None MOTION PASSES 2024-101 ITEMS REMOVED FROM THE CONSENT AGENDA I. Beach Parking Fees Summer 2025 - Update Manager's Office Staff is requesting a change to the recently approved beach parking fees. Staff is recommending the following changes to address concerns about the newly adopted beach parking fees. The weekend (Saturday and Sunday) daily rate will be reduced from $20 to $15. Weekday rates (Monday, Tuesday, Thursday, and Friday) will be $10 per day, and Wednesdays will be a free day. We will offer a special sale price for seasonal passes until January 16, 2025. The special will be a buy one full-price beach pass and get another pass free. Public members are welcome to purchase as many season passes as they wish, but only up to two free passes will be provided (you must buy two full-price passes to receive two free passes). STAFF RECOMMENDATION: To approve the modifications to the 2025 beach parking rates as recommended. Motion by Commissioner Kochin, second by Commissioner Kilgo, to approve the modifications to the 2025 beach parking rates as recommended. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, and Gorman Nays: None MOTION PASSES J. Senior Municipal Funding FY25 Community & Neighborhood Services To approve allocations of the Municipal Senior Millage funding to City programs geared toward citizens who are 60 years of age, or older. An allocation of Page 6 of 10 $122,780.00 from the County of Muskegon FY24 Municipal Senior Millage funding is budgeted for the following programs; Home Repairs (CNS): $102,780.00 Senior Power of Produce: $20,000.00 STAFF RECOMMENDATION: To approve the budget proposed for City of Muskegon programs utilizing FY25 Municipal Senior Millage Funds from the County of Muskegon. Motion by Commissioner Kochin, second by Commissioner Kilgo, to approve the budget proposed for City of Muskegon programs utilizing FY25 Municipal Senior Millage Funds from the County of Muskegon. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES M. Amity Bridge Removal MDOT Project Agreement Public Works Staff requests authorization to enter into an agreement with the Michigan Department of Transportation (MDOT) for the removal of the Amity Bridge, including $433,208 in federal funding with $138,967 of local match for a total of $599,250. City staff submitted this project to the local bridge program several years ago and multiple times, and in 2022 were informed the Amity Bridge Removal was selected. The Engineering Department has worked with MDOT to develop project plans, and the project agreement is ready to be executed. It is included with this item, and is of the standard MDOT format. STAFF RECOMMENDATION: To authorize staff to enter into an agreement with the Michigan Department of Transportation (MDOT) for the removal of the Amity Bridge, including $433,208 in Federal Funding with $138,967 of local match for a total of $599,250. Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to authorize staff to enter into an agreement with the Michigan Department of Transportation (MDOT) for the removal of the Amity Bridge, including $433,208 in Federal Funding with $138,967 of local match for a total of $599,250. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES 2024-102 PUBLIC HEARINGS Page 7 of 10 A. Brownfield Plan Amendment, Lakeshore Hotel Partners, LLC, 181 and 201 Viridian Drive Economic Development Lakeshore Hotel Partners, LLC has submitted a Brownfield Plan Amendment for the Harbor 31 Hotel redevelopment at 181 and 201 Viridian Drive. The project involves constructing a five-story hotel with 126 rooms, and 146 parking spaces. The project site, located at 181 and 201 Viridian Drive, is currently vacant but has a long history of industrial use dating back to the 1800s. This industrial activity has left the property with various contaminants. The developer is in the process of completing both a Phase I Environmental Site Assessment (ESA) and a Baseline Environmental Assessment (BEA). The contaminants identified on-site include benzo(a)pyrene, fluoranthene, naphthalene, phenanthrene, arsenic, cadmium, chromium (total), copper, lead, selenium, zinc, and nickel. Given the historical usage and the presence of these contaminants, the property qualifies as an eligible property under the Michigan Redevelopment Financing Act, Act 381 of 1996. A Brownfield Plan has been established to reimburse both existing and anticipated eligible costs to the developer. Tax increment revenues (TIR) will be captured from local sources only to facilitate this reimbursement. The total cost of eligible activities anticipated for reimbursement, inclusive of contingencies, is estimated at $2,392,792. Additionally, the BRA administrative costs are expected to be up to $364,771, with an estimated capture of TIR for the Local Brownfield Revolving Fund (LBRF) up to $890,145. Project Overview and Tax Increment Financing Plan The redevelopment project, with an initial taxable value set at the 2024 combined amount of $200,800, is scheduled to begin construction in fall 2024 and reach completion by fall 2025. Upon completion, the taxable value of the property is projected to increase to approximately $5,000,000. Tax Increment Revenue (TIR) Collection Tax increment revenue collection will commence within five years of the plan’s adoption, it is anticipated to start as early as 2026. An estimated schedule of captured taxable value by year is presented in Table 2 of the Brownfield Plan. Reimbursements will be based on the actual tax increment realized. Once all eligible expenses have been reimbursed, the Brownfield Redevelopment Authority (BRA) may capture up to five additional years of tax increment revenues to deposit into the Local Brownfield Revolving Fund (LBRF), or until the total eligible activity costs are met, whichever is sooner. Public Act 255 Commercial Redevelopment Act Tax Abatement The project also seeks a 12-year tax abatement under Public Act 255, the Commercial Redevelopment Act, to support the redevelopment efforts. Plan Duration and Capture Timeline The plan is designed to remain in place for 25 years or until all eligible activities are fully reimbursed. If eligible costs are covered sooner, up to five additional years of TIR capture may continue for LBRF funding. However, the maximum Page 8 of 10 plan duration will not exceed 30 years. Eligible Activities and Costs The following are the estimated costs for eligible activities under this plan: • Site Assessment and Baseline Environmental Assessment Activities: $20,000 • Site Demolition Activities: $10,000 • Due Care Activities: $370,000 • Site Preparation: $997,000 • Local Only Eligible Activities Subtotal: $1,397,000 • Contingency (15%): $205,050 • Interest Expense (5%): $770,742 • Brownfield Plan/Work Plan Preparation: $10,000 • Brownfield Plan/Work Plan Implementation: $10,000 Total Cost for Local Only Eligible Activities: $2,392,792 STAFF RECOMMENDATION: I motion to approve the resolution for the Brownfield Plan Amendment for the Harbor 31 Hotel and authorize the City Mayor and City Clerk to sign the resolution. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to close the Public Hearing and approve the resolution for the Brownfield Plan Amendment for the Harbor 31 Hotel and authorize the City Mayor and City Clerk to sign the resolution. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES ANY OTHER BUSINESS Mayor Johnson stated that there was an incident at a local business located at Hackley and Barclay, vandalism of the owners vehicle. The act was abhorrent and unacceptable. Wanted to acknowledge that this happened and repudiate it and urge folks to support the business owner. Commissioner Kilgo mentioned the City's leaf ordinance, leaves cannot be raked into streets and alleys. Would like us to take a look at this issue. PUBLIC COMMENT ON NON-AGENDA ITEMS Public comments received. ADJOURNMENT Page 9 of 10 The City Commission Meeting adjourned at 6:43 p.m. Respectfully Submitted, Ann Marie Meisch, MMC, City Clerk Page 10 of 10
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