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CITY OF MUSKEGON CITY COMMISSION MEETING May 27, 2025 @ 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, May 27, 2025. Pastor Rob Reese from Anchor Point Bible 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 Destinee Keener, Willie German, Jr. (left at 9:30 p.m.), Rachel Gorman, Katrina Kochin, and Jay Kilgo, City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch 20252-41 HONORS, AWARDS, AND PRESENTATIONS A. David Wendtland Proclamation Manager's Office Mayor Johnson read the resolution and presented it to Mrs. Wendtland who thanked the City. PUBLIC COMMENT ON AGENDA ITEMS Public comments received. 2025-42 CONSENT AGENDA A. Approval of Minutes City Clerk To approve minutes of the May 12, 2025, Worksession Meeting, and the May 13, 2025, City Commission Meeting. STAFF RECOMMENDATION: Approval of the minutes. D. Contract with Pioneer Resources for Transit Services Manager's Office Page 1 of 14 Staff is seeking approval for the contract with Pioneer Resources for transit service to the City beaches. At the April 8, 2025, meeting, the Commission approved the beach shuttle service proposal. Staff is now seeking approval of the contract with Pioneer Resources to provide transit service from various neighborhoods to Pere Marquette Park. The agreement includes two buses servicing stops from Smith Ryerson Park to Pere Marquette Park on weekends only from May 23 to August 31. The amount requested is only for May 23 to June 30 and requires a budget amendment. STAFF RECOMMENDATION: To approve the contract with Pioneer Resources and authorize the Mayor and Clerk to sign. G. Rezoning of 236 Monroe Ave. Planning Staff-initiated request to rezone the property at 236 Monroe Ave from B-2, Convenience & Comparison Business to Form Based Code, Urban Residential. At the April Planning Commission meeting, this property was recommended to be rezoned to FBC-MS along with the property to the east. However, a neighbor at the Public Hearing noted that this designation would allow for a parking lot to be built next to their townhouse. After further examination, staff recommended that this property be rezoned to FBC-UR, which would allow for a narrow housing unit, but not a parking lot. The request to rezone the parcel to FBC-UR returned to the May Planning Commission meeting, where it was unanimously recommended for approval. STAFF RECOMMENDATION: I move that the request to rezone the property at 236 Monroe Ave from B-2, Convenience & Comparison Business to Form Based Code, Urban Residential be approved. J. Resolution for 350 W. Western Ave. Social District Permit Community Engagement Pavlik Muskegon Investments, LLC is requesting to join the Downtown Muskegon Social District for their new restaurant, The Western Reserve, located at 350 W. Western Ave—the former site of 18th Amendment. The Michigan Liquor Control Commission (MLCC) has approved their license, and a conditional license has already been issued, with the final license expected next week. To meet State requirements under MCL 436.1551, the business must now receive approval from the City Commission in order to apply for a Social District Permit. The Western Reserve plans to offer steaks, smash burgers, and wood-fired pizza, with a targeted opening by Memorial Day. Upon approval, staff will coordinate with the business to provide training on social district rules as outlined in our social district processes. STAFF RECOMMENDATION: to approve the Social District Permit for Pavlik Muskegon Investments, LLC at 350 W. Western Ave., Muskegon, MI 49440 for consideration by the Michigan Liquor Control Commission. Page 2 of 14 K. Contract Award: H92405 Sun Dolphin and Oak Resurfacing DPW- Engineering Staff is requesting authorization to approve a contract with McCormick Sand, Inc. in the amount of $345,519.50 for road resurfacing work on Sun Dolphin and Oak Ave. Bids were solicited for a construction project to resurface Sun Dolphin from Sherman to Harris and Oak Ave from Harvey east to the City Limits. McCormick Sand provided the low bid. The bids came in under budget and engineers estimate. STAFF RECOMMENDATION: Move to authorize staff to enter into a contract with McCormick Sand, Inc. in the amount of $345,519.50 for the resurfacing of Sun Dolphin and Oak according to the construction plans. L. Lakeshore Art Festival Liquor License Application DPW- Parks The Parks & Recreation Department is seeking Commission approval to apply for a special liquor license for beer and wine service for the Lakeshore Art Festival Artist Reception on June 28, 2025. The temporary license fee for this event is $50. STAFF RECOMMENDATION: Authorize staff to apply for a special liquor license for the Lakeshore Art Festival. M. PILOT Agreement for Park Terrace Apartments Acquisition Economic Development The existing ownership of Park Terrace Apartments and Village at Park Terrace Senior Apartments is seeking to sell the portfolio to new ownership. In order to preserve and lengthen the affordability period, a new Contract for Housing Exemption is required for both projects. Staff and the City Attorney's office have been working to finalize the draft agreements before you related to this project with the new owner. They hope to put significant capital investment into the facilities in the coming years, and in order to finance the project and make that possible they are requesting an updated and restated PILOT on both Park Terrace as well as the senior living component Village at Park Terrace. The agreement reflects a slight reduction in the PILOT rate to 4% of annual shelter rents but establishes a Municipal Services charge in a separate agreement. This is to our advantage because the total MSA revenue stays with the City, rather than being split between the taxing jurisdictions like the PILOT payment. This document is the contract for housing exemption for up to 25 years, which will require adherence to MSHDA regulated rents per requirements in our local ordinance. STAFF RECOMMENDATION: Motion to accept the Amended and Restated Contract for Housing Exemption for Park Terrace Apartments as presented, and to authorize the Mayor and Clerk to sign. N. Municipal Services Agreement for Park Terrace Apartments Acquisition Economic Development Page 3 of 14 The existing ownership of Park Terrace Apartments and Village at Park Terrace Senior Apartments is seeking to sell the portfolio to new ownership. In order to preserve and lengthen the affordability period, a new Municipal Services Agreement is required for both projects. Staff and the City Attorney's office have been working to finalize the draft agreements before you related to this project with the new owner. They hope to put significant capital investment into the facilities in the coming years, and in order to finance the project and make that possible they are requesting an updated and restated Municipal Services Agreement on both Park Terrace as well as the senior living component Village at Park Terrace. The agreement establishes a new Municipal Services Agreement of 2% of the annual shelter rent. This is to our advantage because the total MSA revenue stays with the City, rather than being split between the taxing jurisdictions like the PILOT payment. This document is the contract for housing exemption for up to 25 years, which will require adherence to MSHDA regulated rents per requirements in our local ordinance. STAFF RECOMMENDATION: Motion to accept the Municipal Services Agreement for Park Terrace Apartments as presented, and to authorize the Mayor and Clerk to sign. O. PILOT Agreement for Village at Park Terrace Acquisition Economic Development The existing ownership of Park Terrace Apartments and Village at Park Terrace Senior Apartments is seeking to sell the portfolio to new ownership. In order to preserve and lengthen the affordability period, a new Contract for Housing Exemption is required for both projects. Staff and the City Attorney's office have been working to finalize the draft agreements before you related to this project with the new owner. They hope to put significant capital investment into the facilities in the coming years, and in order to finance the project and make that possible they are requesting an updated and restated PILOT on both Park Terrace as well as the senior living component Village at Park Terrace. The agreement reflects a slight reduction in the PILOT rate to 4% of annual shelter rents but establishes a Municipal Services charge in a separate agreement. This is to our advantage because the total MSA revenue stays with the City, rather than being split between the taxing jurisdictions like the PILOT payment. This document is the contract for housing exemption for up to 25 years, which will require adherence to MSHDA regulated rents per requirements in our local ordinance. STAFF RECOMMENDATION: Motion to approve the Amended and Restated Contract for Housing Exemption for Village at Park Terrace Apartments, and to authorize the Mayor and Clerk to sign. P. Municipal Services Agreement for Village at Park Terrace Acquisition Economic Development Page 4 of 14 The existing ownership of Park Terrace Apartments and Village at Park Terrace Senior Apartments is seeking to sell the portfolio to new ownership. In order to preserve and lengthen the affordability period, a new Municipal Services Agreement is required for both projects. Staff and the City Attorney's office have been working to finalize the draft agreements before you related to this project with the new owner. They hope to put significant capital investment into the facilities in the coming years, and in order to finance the project and make that possible they are requesting an updated and restated Municipal Services Agreement on both Park Terrace as well as the senior living component Village at Park Terrace. The agreement establishes a new Municipal Services Agreement of 2% of the annual shelter rent. This is to our advantage because the total MSA revenue stays with the City, rather than being split between the taxing jurisdictions like the PILOT payment. This document is the contract for housing exemption for up to 25 years, which will require adherence to MSHDA regulated rents per requirements in our local ordinance. STAFF RECOMMENDATION: Motion to accept the Municipal Services Agreement for Village at Park Terrace Apartments as presented, and to authorize the Mayor and Clerk to sign. Q. Amendment to City of Muskegon PILOT Ordinance for Definitions to Residential Housing Projects and Payment in Lieu of Taxes Economic Development Updates to our Affordable Housing Ordinance to align with the latest language in the MSHDA Act. When working on various PILOTS and MSA's we have determined that our code of ordinances, which adopts the MSHDA Act of 1966 and its various definitions by reference, did not directly reflect the language in the act and is at times contradictory. By adding this amendment to define terms more specifically, it firms up our legal agreements required for LIHTC projects, as we pass them under the auspices of this ordinance. Namely, we are creating a more precise definition of "Contract Rents" which helps determined what we are paid in PILOT and MSA contracts, and also broadening the definition of "Housing Project" as the language in our ordinance was more restrictive than what the State allows. STAFF RECOMMENDATION: Motion to amend and adopt Chapter 82, Article II, Section 46 for Definitions to Residential Housing Projects and Payments in Lieu of Taxes as presented. R. Sale of Foreclosed Home at 1285 Langeland to Previous Owner for $7,500 Economic Development The CNS Department purchased a home with Commission approval on the most recent tax auction for rehab, but it was not disclosed to staff that the foreclosed owner was still living in the domicile. We wish to sell to them to keep them in their home for costs incurred. Page 5 of 14 CNS received the foreclosed properties list with instructions from the Director of Development Services to seek potential single-family homes for rehab with CDBG or HOME dollars to either sell to a low-income buyer or retain as an affordable rental unit. They acquired two houses from the list that they had reviewed and on which they had conducted windshield surveys. They appeared vacant as per usual, and the homes were bought from the County Treasurer for back taxes. However, it soon became evident that the home at 1285 Langeland was occupied and the department staff suspected that folks had entered it illegally and needed to be evicted. As the matter was investigated, the family living there was the previous owner and includes multiple generations including children. It is not in our interests to evict anyone from their home, these sites are typically empty failed investment properties or vacant blighted structures so this caught us unaware. We are proposing to the family to quit claim the home back to them for our incurred costs inclusive of filing fees. We have also given guidance to the family on pursuing the homeowner's poverty exemption moving forward in the event the Commission accepts staff proposal to convey the home back to these owners. We have received a consent judgment to proceed with eviction in the event the owners refused the offer to buy the site, but so long as commission agrees to the sale we have no reason to enforce the eviction and everyone can move forward. STAFF RECOMMENDATION: Motion to approve the sale of the property at 1285 Langeland to Anthony Henry or his assign for $7,500, and to authorize staff to close on the transaction with a quit claim deed. Motion by Commissioner Keener, second by Commissioner Kochin, to adopt the Consent Agenda as presented minus Items B, C, E, F, H, and I. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and German Nays: None MOTION PASSES 2025-43 ITEMS REMOVED FROM THE CONSENT AGENDA B. Parking Enforcement Management System Public Safety The Police Department is looking to switch over to a new parking enforcement management system for paid parking to increase efficiency for our parking enforcement officers and a more user-friendly experience for consumers. Parking Enforcement has a contract with Passport Inc. to provide services for people to purchase daily paid parking passes as well as pay any parking citation. Their contract expires on 07/19/2025. We are looking into a new parking enforcement system to increase efficiency and accuracy. T2 Systems came in at the lowest bid compared to Passport and Aims Parking. T2 Systems Page 6 of 14 quoted $22,126 for the first year and a $10,764 annual cost for each year after that. T2 Systems also has a user-friendly app for customers to purchase paid parking and a responsive customer service team. Using the T2 Systems would still allow for annual parking passes to be purchased at kiosks. T2 Systems would add additional options for people to purchase daily passes using an app, pay for parking citations using an app, and parking enforcement to check parking passes by reading license plates. STAFF RECOMMENDATION: I move to award T2 Systems with the bid for parking enforcement's management system. Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to award T2 Systems with the bid for parking enforcement's management system. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and Gorman Nays: None MOTION PASSES C. Sale of 280, 290, 300, 310, & 370 Allen Planning Staff is seeking authorization to sell the City-owned vacant lots at 280, 290, 300, 310, & 370 Allen to Sjaarda Homes and Properties LLC (Derek Sjaarda). Sjaarda Homes and Properties LLC (Derek Sjaarda) would like to purchase the City-owned buildable lots at 280, 290, 300, 310, & 370 Allen for $15,000 (75% of the True Cash Value of $20,000) plus half of the closing costs, and the fee to register the deed. Sjaarda Homes and Properties LLC (Derek Sjaarda) will be constructing a duplex on each property. STAFF RECOMMENDATION: Authorize staff to sell the City-owned vacant lots at 280, 290, 300, 310, & 370 Allen to Sjaarda Homes and Properties LLC (Derek Sjaarda). Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to authorize staff to sell the City-owned vacant lots at 280, 290, 300, 310, & 370 Allen to Sjaarda Homes and Properties LLC (Derek Sjaarda). Motion by Vice Mayor St.Clair, second by Commissioner Kilgo to table this item to the June 24th City Commission Meeting. ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES Page 7 of 14 Due to a medical emergency, the City Commission Meeting was paused from 5:50 p.m. to 6:15 p.m. E. Juneteenth Resolution 2025 Manager's Office Resolution to recognize Thursday, June 19, 2025, as Juneteenth National Independence Day and to authorize the flying of the Juneteenth Flag at City Hall and Hackley Park. Motion by Vice Mayor St.Clair, second by Commissioner German, to support the resolution to recognize Thursday, June 19, 2025, as Juneteenth National Independence Day and to authorize the flying of the Juneteenth Flag at City Hall and Hackley Park from June 16th through June 23rd. ROLL VOTE: Ayes: Kilgo, Keener, German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES F. Recognizing June as Pride Month Manager's Office June is Pride Month; the resolution is offered as a way to acknowledge Pride Month and the LGBTQ+ community. The resolution notes that the Pride Flag will be flown at Hackley Park during Pride Month and that a Pride Display can be done at City Hall. Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to adopt the resolution recognizing June as Pride Month and to fly the Pride Flag at Hackley Park throughout the month of June save for June 16th through 23rd when the Juneteenth Flag will be flown, and also to host a Pride-themed garden display at City Hall as a visible expression of support, respect, and unity. ROLL VOTE: Ayes: Keener, German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES H. Amendment to the Zoning Ordinance, Definition of "Family." Planning Staff-initiated request to amend Article II of the zoning ordinance to amend the definition of "family." The Planning Commission unanimously voted to recommend approval of the amendment at their May meeting. Staff is proposing to amend the definition of "family" in the zoning ordinance to better reflect the current living situations of many homes in the community. There are many homes throughout the City that exceed the number of people Page 8 of 14 allowed under the current definition of family, although it is rarely enforced - mostly because there are not any complaints that would warrant investigation. Increasing the number of unrelated people allowed in a house would better reflect many living situations already present in the community. However, staff from various City departments have noted issues with too many adults living within the same dwelling unit. These issues include stress on aging houses, overcrowding, over-use of amenities/utilities, potential for emergency service calls, and storage of materials. Staff agree that a couple more adults allowed in a housing unit should not warrant too much concern on these issues, but any household larger than that should be situated in a group home or single room- occupancy type building, which are better equipped to host these types of living situations. Please see the existing definition of Family in the zoning ordinance: Family: means one of the following: Family, Domestic: One or more persons living together and related by the bonds of blood, marriage, guardianship, foster relation, or adoption, and not more than two additional unrelated persons, with all such individuals being domiciled together as a single, domestic, housekeeping unit in the dwelling. Functional Family: The following persons shall be considered a functional family: Persons living together in a dwelling unit whose relationship is of a permanent and distinct character and is the functional equivalent of a domestic family, with a demonstrable and recognizable bond which constitutes the functional equivalent of the bonds which render the domestic family a cohesive unit. All persons of the functional family must be cooking and otherwise housekeeping as a single, nonprofit unit. At least one person in the functional family must be the record or equitable owner of the property or dwelling unit, or the primary tenant under a written lease having a least one year’s duration. This definition shall not include any society, club, fraternity, sorority, association, lodge, coterie, organization, rooming house, rooming units, or group where the common living arrangement and/or the basis for the establishment of the functional equivalency of the domestic family is likely or contemplated to exist for a limited or temporary duration. The definition of functional family shall not include a living arrangement where there exists less than 225 square feet of living space in the dwelling unit per person residing therein, or insufficient off- street parking located entirely on the property for all vehicles used by the said residents. Applicability: Living arrangements which would otherwise comply with the description of a family shall not constitute a family if the said arrangements have occurred as a result of commercial or other advertising, or the offering of rooms for rent. Any financial arrangement, except a true sharing of the expenses of all the facilities in the single household unit shall be presumed to constitute renting a room or rooms, and to have resulted from the offering of rooms for rent or commercial or other advertising. Where rooms have been rented, or persons live in the house in response to commercial advertising or the Page 9 of 14 offering of rooms for rent, the living arrangement shall be presumed to constitute a rooming house and not a family. A person claiming the status of family shall have the burden of proof of each of the elements set forth in the relevant definitions of this ordinance. The current definition of domestic family would allow up to three unrelated adults to live in a single housing unit. The current definition of a functional family would allow an unlimited amount of unrelated people to share a home (as long as they function as a family as described by the ordinance and it’s not commercially advertised), with the only restriction being a minimum of 225 sf of space per person. A 4,000 sf house would allow up to 17 people. Staff is proposing to amend the definition of family to the following: Family: One or more persons living together and related by the bonds of blood, marriage, guardianship, foster relation, or adoption, and not more than four additional unrelated persons, with all such individuals being domiciled together as a single, domestic, housekeeping unit in the dwelling. This definition would increase the number of unrelated people allowed in a house from three to five. Looking forward to the following case, rooming houses would allow opportunities for households between 6-8 unrelated people and single-room occupancy homes would allow up to 25 unrelated people. STAFF RECOMMENDATION: I move that the request to amend Section II of the zoning ordinance to amend the definition of family be approved as presented. Motion by Commissioner Kilgo, second by Vice Mayor St.Clair, to move that the request to amend Section II of the zoning ordinance to amend the definition of family be approved as presented. Motion amended by Commissioner Kilgo, second by Vice Mayor St.Clair, to amend Section II of the zoning ordinance to amend the definition of family to be seven plus family be approved. VOTE ON AMENDED MOTION ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and German Nays: None AMENDED MOTION PASSES VOTE ON ORIGINAL MOTION WITH AMENDMENT ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener Nays: None Page 10 of 14 MOTION PASSES I. Amendment to the Zoning Ordinance, Creating Regulations for "Single- Room Occupancy Homes" and "Rooming Houses." Planning Staff-initiated request to amend the zoning ordinance to create a section that allows for single-room occupancy homes and rooming house uses. The Planning Commission unanimously recommended approval of the amendment at their May meeting. Staff had been asked by the City Commission to explore the option of allowing Single-Room Occupancy homes in the City. A Single-Room Occupancy is a dwelling unit within a housing structure that does not have its own kitchen, or usually even a bathroom, where the tenants share common amenities like kitchens, bathrooms, laundry facilities, etc. This type of use actually happens under the radar quite often, with inspectors finding them periodically in the City. Sometimes these non-permitted uses have the owner living on-site, sometimes they do not. Through research, staff have discovered that the term "boarding house" is often associated with a use where the owner or manager lives on-site and rents out rooms with common amenities. The term "single-room occupancy" is often associated with a use where neither the owner nor a manager resides on site and rents out rooms with common amenities. Our current zoning ordinance does not have a definition for single-room occupancy, but it does have a definition for "rooming house", although they are only allowed in RM-2 and RM-3 zoning districts and only up to five people are allowed in the house. It also does not require the owner or manager to live on site. See definition below. Rooming House: A dwelling structure having single rooms for rent and having no common areas except common places for the taking of meals, or baths, or laundry facilities, and not defined as a tourist home, or state-licensed residential facility. Staff recommend amending this definition to require the owner or manager to reside on-site, to distinguish it from the proposed single-occupancy ordinance. Staff also recommend creating a new section in the ordinance that regulates both "rooming houses" and "SRO's." Most requests for SRO buildings will likely be for former assembly buildings, such as schools and churches, or potentially commercial/office buildings. Most schools and churches have an R, Neighborhood Residential zoning. The master plan recommends allowing higher density for adaptive reuse of these types of buildings. Staff recommend that SRO's be allowed in RM-1, Low Density Multi- Family districts. This would require rezoning most of these types of buildings, but would be supported by the master plan because it allows different types of residential uses, so they would not be considered spot zones. The density requirement proposed for these SRO's also closely resembles that of the RM-1 districts. Staff also recommend that we amend the ordinance at a later date to allow "rooming houses," where the owner lives on site, in the R, Neighborhood Page 11 of 14 Residential and FBC, Urban Residential districts, with stricter guidelines on spacing and fewer allowed roomers, so that traditional houses do not become overcrowded and stressed. A "rooming house" would be for fewer people and be allowed in more traditional houses while an "SRO" would be for more people and be required to be in larger buildings more equipped for density. Proposed definitions: Rooming House: A dwelling structure having single rooms for rent and having no common areas except common places for the taking of meals, or baths, or laundry facilities, and not defined as a tourist home, or state-licensed residential facility. The owner or manager of the property must live on-site. Single Room Occupancy (SRO) Home: A dwelling structure having single bedrooms for rent by tenants and having common areas such as kitchens, bathrooms, or laundry facilities available to all tenants. The owner of the property or manager may or may not live on-site. This does not include uses defined as a tourist home, or state-licensed residential facility. Proposed ordinance: Section 2318: Single-Use Occupancies & Rooming Houses Rooming Houses are allowed as a principal use permitted in R, Neighborhood Residential, FBC, Urban Residential and RM-1 districts under the following conditions: 1. The owner or property manager must live on site. 2. There may be up to two people per bedroom. A bedroom must have at least 100 sf of space for a single tenant and at least 200 sf of space for two tenants. 3. Houses at least 2,000 sf in size may allow up to six people to live on-site. Houses at least 2,500 sf may allow up to eight people to live on-site. 4. Parking requirements of the zoning district must be followed. Single-Room Occupancy Homes are allowed as a special use permitted in RM- 1 districts under the following conditions: 1. The property owner or manager may or may not live on site. 2. There may be up to two people per bedroom. A bedroom must have at least 100 sf of space for a single tenant and at least 200 sf of space for two tenants. 3. There shall not be more than 20 bedrooms per building. 4. There shall not be more than 25 people per building, regardless of the number of two-bedrooms available. 5. There shall only be one building that houses people per parcel. 6. All bedroom occupants shall have access to common areas and amenities such as kitchen, bathrooms, laundry, etc. 7. At least 90% of the SRO units shall be occupied by the same tenants for a continuous period of at least 90 days. 8. One parking space is required for every 3 bedrooms. STAFF RECOMMENDATION: I move that the request to amend Section 2318 of the zoning ordinance to create regulations for single-room occupancy and Page 12 of 14 rooming houses be approved as presented. Motion by Commissioner German, second by Commissioner Kochin, to approve the request to amend Section 2318 of the zoning ordinance to create regulations for single-room occupancy be approved as presented. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and Gorman Nays: None MOTION PASSES Motion by Commissioner Kilgo, second by Commissioner Keener, to suspend the rules to allow public comments from anyone in the audience wishing to make public comments. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, Gorman, and Kochin Nays: None MOTION PASSES PUBLIC COMMENTS FROM THE AUDIENCE Public comments received. 2025-44 PUBLIC HEARINGS A. FY 2025-26 Budget Manager's Office Presenting a draft of the Fiscal Year 2026 budget - the total appropriation across all funds is $111.9 million, with $44.1 million appropriated from the general fund. Staff will present the Fiscal Year 2026 budget, which was distributed to the commission on May 12, 2025. This will be a public hearing with discussion only. The budget will again be a discussion item at our June 9, 2025, work session, with action on the budget anticipated for June 10, 2026. The General Fund budget is presented with a budget surplus (in the black) of $232,972. Because of the size of the budget document, please follow this link to the DRAFT FY 2025-26 Budget Book. STAFF RECOMMENDATION: none - discussion only City Manager Jonathan Seyferth gave an overview of the budget and answered questions. This will be brought back to Commission for further discussion at the June 9th Commission Worksession and the June 10th City Commission Meeting for formal review and vote. The public hearing opened to hear and consider any comments from the Page 13 of 14 public. No public comments were made. Motion by Commissioner Keener, second by Commissioner Kochin, to close the public hearing. ROLL VOTE: Ayes: Johnson, Kilgo, Keener, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES ANY OTHER BUSINESS Mayor Johnson mentioned his letter reference the redevelopment of Froebel, how important the tax break is. GENERAL PUBLIC COMMENT Public comments received. ADJOURNMENT The City Commission meeting adjourned at 9:37 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 14 of 14
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