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CITY OF MUSKEGON CITY COMMISSION MEETING July 8, 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, July 8, 2025. Pastor Dwayne Riley from Crestwood United Methodist 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 Willie German, Jr., Rachel Gorman, Katrina Kochin, and Jay Kilgo, City Manager Jonathan Seyferth, City Attorney John Schrier, and City Clerk Ann Marie Meisch Absent: Commissioner Destinee Keener 2025-54 HONORS, AWARDS, AND PRESENTATIONS A. Disability Pride Month Resolution Manager's Office To adopt a resolution recognizing July as Disability Pride Month. Jeffrey VanDyke explained why Disability Pride Month matters and Commissioner Kochin read the Resolution. Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to adopt a resolution recognizing July as Disability Pride Month and to allow for the displaying of the history and information on Disability Pride and disability resources in the lobby of City Hall. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES 2025-55 PUBLIC HEARINGS Page 1 of 19 A. Request to Create a New Neighborhood Enterprise Zone District at 535 Yuba St Economic Development Pursuant to Public Act 147 of the Michigan Public Acts of 1992 as amended, staff has requested to create a new Neighborhood Enterprise Zone (NEZ) district for a single-family home at 535 Yuba St. This public hearing is being held to consider the establishment of a Neighborhood Enterprise Zone (NEZ) district at 535 Yuba Street. Inclusion in a NEZ district allows eligible property owners to apply for NEZ certificates, which lower residential property taxes on newly constructed or rehabilitated homes. Only the residential component of the proposed development at this address would be affected by the NEZ designation. In accordance with Public Act 147 of 1992, as amended, notice of the proposed NEZ district was mailed to all affected local taxing jurisdictions on June 12, 2025. Per state requirements: • A public hearing must be held within 45 days of the notice being sent. • The resolution establishing the NEZ district may not be adopted until at least 60 days after notice was issued The resolution to establish the NEZ district at 535 Yuba Street is scheduled to return to the City Commission for consideration on August 12, 2025. State law allows up to 15% of a local government’s total land area to be designated as NEZ districts. The City of Muskegon is currently at 13.17%. The addition of the proposed NEZ district at 535 Yuba Street would remain within the allowable limit. STAFF RECOMMENDATION: I move to close the public hearing for the NEZ District at 535 Yuba St. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner Kilgo, second by Commissioner Kochin, to close the public hearing for the NEZ District at 535 Yuba Street. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and German Nays: None MOTION PASSES B. Request to Create a New Neighborhood Enterprise Zone District at 2127 Austin St. Economic Development Page 2 of 19 Pursuant to Public Act 147 of the Michigan Public Acts of 1992 as amended, staff has requested to create a new Neighborhood Enterprise Zone (NEZ) district for 2127 Austin St. This public hearing is being held to consider the establishment of a Neighborhood Enterprise Zone (NEZ) district at 2127 Austin St. Inclusion in a NEZ district allows eligible property owners to apply for NEZ certificates, which lower residential property taxes on newly constructed or rehabilitated homes. Only the residential component of the proposed development at this address would be affected by the NEZ designation. In accordance with Public Act 147 of 1992, as amended, notice of the proposed NEZ district was mailed to all affected local taxing jurisdictions on June 12, 2025. Per state requirements: • A public hearing must be held within 45 days of the notice being sent. • The resolution establishing the NEZ district may not be adopted until at least 60 days after notice was issued. The resolution to establish the NEZ district at 2127 Austin Street is scheduled to return to the City Commission for consideration on August 12, 2025. State law allows up to 15% of a local government’s total land area to be designated as NEZ districts. The City of Muskegon is currently at 13.17%. The addition of the proposed NEZ district at 2127 Austin Street would remain within the allowable limit. STAFF RECOMMENDATION: I move to close the public hearing for the NEZ District at 2127 Austin St. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner St.Clair, second by Commissioner Kilgo, to close the public hearing for the NEZ District at 2127 Austin St. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, German, and Gorman Nays: None MOTION PASSES C. Request to Create a New Neighborhood Enterprise Zone District at 2262 Austin St. Economic Development Pursuant to Public Act 147 of the Michigan Public Acts of 1992 as amended, staff has requested to create a new Neighborhood Enterprise Zone (NEZ) district for 2262 Austin St. This public hearing is being held to consider the establishment of a Neighborhood Enterprise Zone (NEZ) district at 2262 Austin St. Inclusion in a NEZ Page 3 of 19 district allows eligible property owners to apply for NEZ certificates, which lower residential property taxes on newly constructed or rehabilitated homes. Only the residential component of the proposed development at this address would be affected by the NEZ designation. In accordance with Public Act 147 of 1992, as amended, notice of the proposed NEZ district was mailed to all affected local taxing jurisdictions on June 12, 2025. Per state requirements: • A public hearing must be held within 45 days of the notice being sent. • The resolution establishing the NEZ district may not be adopted until at least 60 days after notice was issued. The resolution to establish the NEZ district at 2262 Austin Street is scheduled to return to the City Commission for consideration on August 12, 2025. State law allows up to 15% of a local government’s total land area to be designated as NEZ districts. The City of Muskegon is currently at 13.17%. The addition of the proposed NEZ district at 2262 Austin would remain within the allowable limit. STAFF RECOMMENDATION: I move to close the public hearing for the NEZ District at 2262 Austin St. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner German, second by Commissioner Kilgo, to close the public hearing for the NEZ District at 2262 Austin St. ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, German, Gorman, and Kochin Nays: None MOTION PASSES D. Request to Create a New Neighborhood Enterprise Zone District at 1920, 1930, 1940, 1950 & 1960 South Getty St. Economic Development Pursuant to Public Act 147 of the Michigan Public Acts of 1992 as amended, staff has requested to create a new Neighborhood Enterprise Zone (NEZ) district for 1920, 1930, 1940, 1950 & 1960 South Getty St. This public hearing is being held to consider the establishment of a Neighborhood Enterprise Zone (NEZ) district at 1920, 1930, 1940, 1950 & 1960 South Getty St. Inclusion in a NEZ district allows eligible property owners to apply for NEZ certificates, which lower residential property taxes on newly constructed or rehabilitated homes. Only the residential component of the proposed development at this address would be affected by the NEZ designation. In accordance with Public Act 147 of 1992, as amended, notice of the Page 4 of 19 proposed NEZ district was mailed to all affected local taxing jurisdictions on June 12, 2025. Per state requirements: • A public hearing must be held within 45 days of the notice being sent. • The resolution establishing the NEZ district may not be adopted until at least 60 days after notice was issued. The resolution to establish the NEZ district at 1920, 1930, 1940, 1950 & 1960 South Getty St. is scheduled to return to the City Commission for consideration on August 12, 2025. State law allows up to 15% of a local government’s total land area to be designated as NEZ districts. The City of Muskegon is currently at 13.17%. The addition of the proposed NEZ district at 1920, 1930, 1940, 1950 & 1960 South Getty St. would remain within the allowable limit. STAFF RECOMMENDATION: I move to close the public hearing for 1920, 1930, 1940, 1950 & 1960 South Getty St. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner Kochin, second by Commissioner Kilgo, to close the public hearing for 1920, 1930, 1940, 1950 & 1960 South Getty St. ROLL VOTE: Ayes: Johnson, Kilgo, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES E. Request to Create a New Neighborhood Enterprise Zone District at 2209 Valley St. Economic Development Pursuant to Public Act 147 of the Michigan Public Acts of 1992 as amended, staff has requested to create a new Neighborhood Enterprise Zone (NEZ) district for 2209 Valley St. This public hearing is being held to consider the establishment of a Neighborhood Enterprise Zone (NEZ) district at 2209 Valley St. Inclusion in a NEZ district allows eligible property owners to apply for NEZ certificates, which lower residential property taxes on newly constructed or rehabilitated homes. Only the residential component of the proposed development at this address would be affected by the NEZ designation. In accordance with Public Act 147 of 1992, as amended, notice of the proposed NEZ district was mailed to all affected local taxing jurisdictions on June 12, 2025. Per state requirements: • A public hearing must be held within 45 days of the notice being sent. Page 5 of 19 • The resolution establishing the NEZ district may not be adopted until at least 60 days after notice was issued. The resolution to establish the NEZ district at 2209 Valley St. is scheduled to return to the City Commission for consideration on August 12, 2025. State law allows up to 15% of a local government’s total land area to be designated as NEZ districts. The City of Muskegon is currently at 13.17%. The addition of the proposed NEZ district at 2209 Valley St. would remain within the allowable limit. STAFF RECOMMENDATION: I move to close the public hearing for 2209 Valley St. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Vice Mayor St.Clair, second by Commissioner Kochin, to close the public hearing for 2209 Valley St. ROLL VOTE: Ayes: Kilgo, German, Gorman, Kochin, St.Clair, and Johnson Nays: None MOTION PASSES F. Request to Create a New Neighborhood Enterprise Zone District at 2247 Valley St. Economic Development Pursuant to Public Act 147 of the Michigan Public Acts of 1992 as amended, staff has requested to create a new Neighborhood Enterprise Zone (NEZ) district for 2247 Valley St. This public hearing is being held to consider the establishment of a Neighborhood Enterprise Zone (NEZ) district at 2247 Valley St. Inclusion in a NEZ district allows eligible property owners to apply for NEZ certificates, which lower residential property taxes on newly constructed or rehabilitated homes. Only the residential component of the proposed development at this address would be affected by the NEZ designation. In accordance with Public Act 147 of 1992, as amended, notice of the proposed NEZ district was mailed to all affected local taxing jurisdictions on June 12, 2025. Per state requirements: • A public hearing must be held within 45 days of the notice being sent. • The resolution establishing the NEZ district may not be adopted until at least 60 days after notice was issued. The resolution to establish the NEZ district at 2247 Valley St. is scheduled to return to the City Commission for consideration on August 12, 2025. Page 6 of 19 State law allows up to 15% of a local government’s total land area to be designated as NEZ districts. The City of Muskegon is currently at 13.17%. The addition of the proposed NEZ district at 2247 Valley St. would remain within the allowable limit. STAFF RECOMMENDATION: I move to close the public hearing for 2247 Valley St. The Public Hearing opened to hear and consider any comments from the public. Comments were made from Pastor Dwayne Riley. Motion by Commissioner German, second by Vice Mayor St.Clair, to close the public hearing for 2247 Valley St. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES G. Request to Create a New Neighborhood Enterprise Zone District at 2155 Continental St. Economic Development Pursuant to Public Act 147 of the Michigan Public Acts of 1992 as amended, staff has requested to create a new Neighborhood Enterprise Zone (NEZ) district for 2155 Continental St. This public hearing is being held to consider the establishment of a Neighborhood Enterprise Zone (NEZ) district at 2155 Continental St. Inclusion in a NEZ district allows eligible property owners to apply for NEZ certificates, which lower residential property taxes on newly constructed or rehabilitated homes. Only the residential component of the proposed development at this address would be affected by the NEZ designation. In accordance with Public Act 147 of 1992, as amended, notice of the proposed NEZ district was mailed to all affected local taxing jurisdictions on June 12, 2025. Per state requirements: • A public hearing must be held within 45 days of the notice being sent. • The resolution establishing the NEZ district may not be adopted until at least 60 days after notice was issued. The resolution to establish the NEZ district at 2155 Continental St. is scheduled to return to the City Commission for consideration on August 12, 2025. State law allows up to 15% of a local government’s total land area to be designated as NEZ districts. The City of Muskegon is currently at 13.17%. The addition of the proposed NEZ district at 2247 Valley St. would remain within the allowable limit. Page 7 of 19 STAFF RECOMMENDATION: I move to close the public hearing at 2155 Continental St. The Public Hearing opened to hear and consider any comments from the public. No public comments were made. Motion by Commissioner Kochin, second by Commissioner Kilgo, to close the public hearing at 2155 Continental St. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES FEDERAL/STATE/COUNTY OFFICIALS UPDATE No comments were received. PUBLIC COMMENT ON AGENDA ITEMS No public comments were received. 2025-56 CONSENT AGENDA A. Approval of Minutes City Clerk To approve minutes of the June 24, 2025, City Commission Meeting. STAFF RECOMMENDATION: Approval of the minutes. B. Purchase of Tax Auction Properties Planning Purchase of vacant lots and one house from the County Treasurer. Prior to the August 1st, 2025, Tax Auction, the City has the opportunity to express interest in vacant land and houses to the County Treasurer. There is 1 address (1764 Manz) with a home on it, that will be developed by the CNS Department with HOME funds and sold to buyers at or below the 80% AMI. There are 5 vacant lots (872 E Forest, 1642 Dyson, 181 Irwin, 1500 Park, and 771 McLaughlin) that will be used to help further infill housing goals. All properties purchased will be for public purposes. Three properties were removed from the original list of properties (240 Mason, 436 Catawba, and 159 W Larch). These properties' cost was originally $11,355.87. Notice was given today (7/8/25) that an Intent to Claim was filed with the County Treasurer's office by previous owners, raising the total cost of these three addresses to $166,800. When an Intent to Claim is filed, the minimum purchase amount is changed to fair market value, or double the SEV. STAFF RECOMMENDATION: Authorize the Code Coordinator to proceed with the purchase of the addresses in the letter of intent from the Muskegon County Treasurer Tax Auction, 8/1/2025. Page 8 of 19 D. Adoption of the Muskegon County Hazard Mitigation Plan Public Safety Staff seeks the adoption of the Muskegon County Hazard Mitigation Plan and approval of the corresponding resolution of support. Muskegon County Emergency Management completed the Muskegon County Hazard Mitigation Plan (HMP) 2024-2029 Edition. The document was prepared in accordance with the Disaster Mitigation Act of 2000 to identify and assess the County’s risk and vulnerabilities to hazards, and to outline strategies and options for minimizing the damage and impact of future disasters. The HMP is a required document in order for local agencies to pursue state and federal grant funding. The County is requesting the City's adoption of a resolution in support of the HMP. The document can be accessed at - https://co.muskegon.mi.us/1973/Emergency-Management STAFF RECOMMENDATION: I move to adopt the Muskegon County Hazard Mitigation Plan and authorize the Mayor and Clerk to sign the resolution. F. Sale of 1783 Smith Planning Staff is seeking authorization to sell the City-owned vacant lot at 1783 Smith to B&L Properties #1 LLC (Brian Tierman). B&L Properties #1 LLC (Brian Tierman) would like to purchase the City-owned buildable lot at 1783 Smith for $2,775 (75% of the True Cash Value of $3,700) plus half of the closing costs, and the fee to register the deed. Brian Tierman, an adjacent property owner and local business owner, will be constructing a duplex on the property. The lot dimensions are 45' x 125.5' (5,647.5 sq ft), meeting the requirements for a duplex build. STAFF RECOMMENDATION: Authorize staff to sell the City-owned vacant lot at 1783 Smith to B&L Properties #1 LLC (Brian Tierman). I. Certification of MERS Representatives Finance Assigning Delegates for MERS Conference. The MERS plan document provides that "the governing body for each municipality shall certify the names of (2) delegates to the Annual Meeting. One delegate shall be a member who is an officer of the municipality appointed by the governing body of the municipality. The other delegate shall be a member who is not an officer of the municipality, elected by the municipal officers/employees of the municipality." The City's employee units previously agreed to a rotating system (based on the date of joining MERS) to select one official employee representative. This year, the official employee representative attending the MERS conference will be Scott Hepworth from Police Command. The Officer Delegate will be Jessica Rabe, Assistant Finance Director, this year. STAFF RECOMMENDATION: To approve Jessica Rabe (Assistant Finance Director) Page 9 of 19 as designated delegate to MERS Conference and to make Scott Hepworth employee representative. K. MML Workers' Compensation Fund Board Ballot Manager's Office As a member of the Michigan Municipal League's (MML) Worker's Compensation Fund, the City of Muskegon votes for the fund's board members. The recommended slate of four candidates can be found on the page following the memo. As a member of the Michigan Municipal League's (MML) Worker's Compensation Fund, the City of Muskegon votes for the fund's board members. The Commission must approve a slate of up to four candidates. The recommended slate of candidates include the following individuals: • Brian Boggs, City Councilmember, City of Durand • Maureen Donker, Mayor, City of Midland • Craig Stolsonburg, Village Manager, Village of Middleville • Deborah Stuart, City Manager, Mason City STAFF RECOMMENDATION: To approve the MML Workers' Compensation Fund Board of Trustees slate as presented and authorize the City Manager to sign. L. Rezoning of 62 Irwin Ave from Neighborhood Residential (R) to Low- Density Multiple Family Residential (RM-1). (SECOND READING) Planning Request to rezone the property at 62 Irwin Ave from R, Neighborhood Residential to RM-1, Low-Density Multiple Family Residential. The Planning Commission unanimously (6-0, 3 members absent) recommended approval of the request. The property is zoned R-1, Neighborhood Residential. The parcel measures 13,200 sq ft, and the vacant church on-site measures 2,583 sq ft. The applicant would like to convert the former church building into residential units. The current zoning would allow up to a duplex, but the building is large enough to host more units. A rezoning to RM-1 would allow up to 16 units per acre, which would be four units on this property, assuming each unit would meet the necessary size requirements. With RM-1 zoning, the applicant would also have the option to apply for a special use permit for a single-room occupancy building, which he is also considering. The parcels to the west along Peck Street are also zoned RM-1. However, staff have been holding focus group discussions with these business owners about the possibility of rezoning the district to form-based code. Initial discussions were very positive and well-received. Even if these parcels were to be rezoned away from RM-1, the rezoning of 62 Irwin should still be considered for a rezoning to this designation, and staff do not believe this would be considered a spot zone. Page 10 of 19 The Master Plan specifically talks about being flexible with the zoning of former civic buildings and allowing more density in their redevelopment. Notice was sent to all properties within 300 feet of this parcel. At the time of this writing, staff had not received any comments from the public. STAFF RECOMMENDATION: I move to approve the request to rezone the property at 62 Irwin Ave from R, Neighborhood Residential to RM-1, Low-Density Multiple Family Residential. M. Rezoning of 1188 Lakeshore Dr from Lakefront Recreation (LR) to Form Based Code, Urban Residential (FBC, UR). (SECOND READING) Planning Request to rezone the property at 1188 Lakeshore Dr from Lakefront Recreation (LR) to Form Based Code, Urban Residential (FBC-UR). The Planning Commission unanimously (6-0, 3 members absent) recommended approval of the request. This vacant lot measures 1.6 acres and is zoned LR, Lakefront Recreation. It is located between the Lakeshore Yacht Harbour marina and Adelaide Point and is owned by Cole's Quality Foods. The applicant is considering purchasing the property and would like to build a single-family house to live in. The LR zoning designation does not allow for housing. The lot does not have frontage on a street, but the applicant is working with Lakeshore Yacht Harbour to obtain an easement from the southern end of this lot to W. Western Ave. The applicant is requesting to rezone the property to Form Based Code, Urban Residential, which would allow up to a duplex and an accessory dwelling unit, in terms of density. However, he is only planning on developing one single- family house. Much of the lot is unusable for construction as it lies below the ordinary high watermark, and there is also a large slope in the building footprint area. Utilities will need to be installed underneath the former railroad ROW, and the applicant will be responsible for obtaining easements from CSX. A driveway will also need to be installed at the end of the cul-de-sac and across the bike path. A permit from the City Engineering Department will be required. The future land use map in the Master Plan identifies this parcel as "Lakeshore," which is described as "Mixed-use development and recreational, water-related activities located along the Muskegon Lake shoreline. The large lot sizes, uniquely shaped parcels, and wide range of permitted uses, Planned Unit Developments (PUD) are common in this land use category." A site plan is not required for a rezoning request, but one has been provided to show how the development would work. The applicant has worked with city staff to create a driveway that would be placed in a way to minimize conflict with the bike path. STAFF RECOMMENDATION: I move to approve the request to rezone the property at 1188 Lakeshore Dr from Lakefront Recreation to Form Based Code, Urban Residential. P. Water Supply System Bonds Series 2025 Finance Page 11 of 19 Ordinance authorizing the issuance of a Water Supply Junior Lien Revenue Bond Series 2025. The bonds are expected to be sold to the Michigan Finance Authority and payable in 20 annual principal installments at an interest rate of 2.0%. Bond closing is scheduled for August 28th. Estimated Principal Forgiveness has yet to be determined. STAFF RECOMMENDATION: To authorize the issuance of Water Sewer Supply System Bonds, Series 2025 for an amount not to exceed $15,000,000.00 Q. Marshall Water Tower Improvements Project Public Works Authorize the award of the Marshall Water Tower Improvements Project to 7 Brothers Painting, and authorize the Clerk to sign the resolution. Our engineering consultant Prein & Newhof solicited bids for Marshall Water Tower Improvements Project including painting of the interior and adding a mixer. This project was introduced to the Commission at an earlier Commission meeting when the engineering work was awarded. It was also included in our DWRF Project Plans in June of 2021. The low bidder, Seven Brothers Painting has completed similar projects and is recommended by staff and Prein & Newhof. Their bid of $2,553,952.00 is below the engineers estimate. This project is financed through the sale of bonds in partnership with the State of Michigan Lean Water and Drinking Water Revolving Funds. The State of Michigan programs offer grants and principal forgiveness for portions of the project. We anticipate that when bonds are sold later this summer, we will be offered grants and forgiveness worth 20% of the water system cost. A portion of the project will be financed and added to the water and sewer debt fees. Staff will estimate the debt fees associated with this project once grants and bonds are finalized. STAFF RECOMMENDATION: I move to approve award of the Marshall Water Tower Improvements Project to Seven Brothers Painting, and authorize the Clerk to sign the resolution. R. DWSRF FY 2025 - Lead Service Line Replacement Public Works Authorize the award of the Lead Service Line Replacements Project (LSLR) to the low bidder, Gustafson HDD, LLC, and authorize the Clerk to sign the resolution. Our engineering consultant Prein & Newhof solicited bids for Lead Service line replacement within portions of the Nims and Marsh Field area neighborhoods. This project was introduced to the Commission at an earlier meeting when the engineering work was awarded. It was also included in our DWRF Project Plans in May of 2024. Gustafson HDD, LLC was the low bidder with a bid of $7,188,070.00 which was well below the engineer's estimate. Therefore, Prein & Newhof worked with the state and identified additional lead service lines that could be added to the Page 12 of 19 contract. Staff is requesting approval of a pre-award change order in the amount of $2,330,863.28 in addition to the low bid amount of $7,188,070.00 to bring the total contract amount to $9,518,933.28 which will allow the city to take full advantage of bonding and principal forgiveness being offered to us through the state and replace an additional 320 lead service lines within the City. Gustafson HDD, LLC has previously performed this type of work well within the City of Muskegon and is currently working on a similar project here in the City of Muskegon that is also overseen by Prein & Newhof. STAFF RECOMMENDATION: To approve the award of the 2025 Lead Service Line Replacement Contract to Gustafson, HDD,LLC, contingent upon successful financial arrangements with the DWRF program, and authorize the Clerk to sign the resolution. S. DWSRF FY 2025 - Butler & Catherine Avenue Reconstruction Project Award Public Works Award the DWSRF FY-25 Butler & Catherine Avenue Reconstruction Project to Kamminga & Roodvoets in the low bid amount of $3,604,621.50. Our engineering consultant Prein & Newhof solicited bids for the Reconstruction of Butler and Catherine Avenue Project.The project was introduced to the Commission at a previous meeting when the engineering work was awarded and was also included in our DWSRF Project Plans in May of 2024. The Low bidder, Kamminga & Roodvoets, has performed similar projects for the City including most recently the Wilcox-Thompson Utility Improvements and Street Reconstruction Project, and is recommended by staff and Prein & Newhof. Their bid of $3,604,621.50 is below the engineer's estimate. This project is financed through the sale of bonds in partnership with the State of Michigan Drinking Water Revolving Funds. The State of Michigan programs offer grants and principal forgiveness for portions of the project. We anticipate that when bonds are sold later this summer, we will be offered forgiveness worth approx. 20% of the water system cost. For this project, that amount is estimated at $2,797,000. The remainder of the project will be financed with a 2.00% interest rate for 20 years. The portion of the project that will be financed will be added to the water debt fees which will be calculated when the bond sale is complete. STAFF RECOMMENDATION: I move to approve award of the Butler and Catherine Reconstruction Project to Kamminga & Roodvoets contingent upon successful financial arrangements with the DWSRF program, and authorize the Clerk to sign the resolution. Motion by Commissioner Kilgo, second by Commissioner German, to adopt the Consent Agenda as presented minus items C, E, G, H, J, N, and O. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and German Page 13 of 19 Nays: None MOTION PASSES 2025-57 ITEMS REMOVED FROM THE CONSENT AGENDA C. City Support Emergency Operations Plan Public Safety Staff seeks adoption of the City's updated Support Emergency Operations Plan. Public Safety staff seek the adoption of an updated City-specific Support Emergency Operations Plan (EOP) which describes how the City will handle emergency situations in cooperation with the County and MSP Emergency Management agencies. The scope of the Support EOP is limited to severe weather events, as other areas of emergency management responsibility will remain with the County of Muskegon’s Emergency Manager. The goal is to coordinate emergency response efforts, before, during and after, and respond to any emergency, and describe response procedures. The Support EOP does not contain specific instructions as to how each department will respond to an emergency; these can be found in the Plan annexes. This Plan will assist staff in accomplishing our primary responsibilities of protecting lives and property. STAFF RECOMMENDATION: I move to adopt the updated City's Support Emergency Operations Plan. Motion by Commissioner Kochin, second by Commissioner Kilgo, to adopt the updated City's Support Emergency Operations Plan. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, German, and Gorman Nays: None MOTION PASSES E. Sale of 617, 625, 635, 638, and 644 Oak Planning Staff is seeking authorization to sell the City-owned vacant lots at 617, 625, 635, 638, and 644 Oak 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 617, 625, 635, 638, and 644 Oak for $15,150 (75% of the True Cash Value of $20,200) 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 617, 625, 635, 638, and 644 Oak to Sjaarda Homes and Properties LLC (Derek Sjaarda). Page 14 of 19 Motion by Commissioner German, second by Commissioner Kilgo, to authorize staff to sell the City-owned vacant lots at 617, 625, 635, 638, and 644 Oak to Sjaarda Homes and Properties LLC (Derek Sjaarda). ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, German, Gorman, and Kochin Nays: None MOTION PASSES G. Annual Action Plan Budget 2025 Community & Neighborhood Services The budgets for both CDBG and HOME funds are for your review and consent. The Annual Action Plan Budgets are presented to the Commission for approval based on the Department of Housing and Urban Development (HUD) appropriations for FY2024. The Community Planning and Development (CPD) office-funded programs are Community Development Block Grant (CDBG) and HOME investment Partnerships (HOME) and the allocations total $1,178,377.76 for eligible programs administered by the office of Community and Neighborhood Services. STAFF RECOMMENDATION: To approve the 2024 Annual Action Plan Budgets for CDBG and HOME Programs. Motion by Commissioner German, second by Commissioner Kochin, to approve the 2024 Annual Action Plan Budgets for CDBG and HOME Programs. ROLL VOTE: Ayes: Johnson, Kilgo, German, Gorman, Kochin, and St.Clair Nays: None MOTION PASSES H. Sale of 802 & 818 Wood Planning Staff is seeking authorization to sell the City-owned vacant lots at 802 & 818 Wood to Jeffrey Vos, Infrastructure C & E. Jeffrey Vos, Infrastructure C & E, would like to purchase the City-owned buildable lots at 802 & 818 Wood for $7,500 (75% of the True Cash Value of $10,000) plus half of the closing costs, and the fee to register the deed. Jeffrey Vos, Infrastructure C & E, will be constructing seven (7) single-family homes on the site. The parcels will be combined and split into seven separate parcels. STAFF RECOMMENDATION: Authorize staff to sell the City-owned vacant lots at 802 & 818 Wood to Jeffrey Vos, Infrastructure C & E. Page 15 of 19 Motion by Commissioner German, second by Commissioner Kilgo, to authorize staff to sell the City-owned vacant lots at 802 & 818 Wood to Jeffrey Vos, Infrastructure C & E. ROLL VOTE: Ayes: Kilgo, Gorman, Kochin, St.Clair, and Johnson Nays: German MOTION PASSES J. Burning Foot Camping DPW- Parks and Recreation The Burning Foot event organizers are requesting approval to allow camping at Pere Marquette and Margaret Drake Elliott on August 23, 2025, and amend the camping fee to 10% of the camping revenue instead of $20 per tent. Burning Foot is returning to Pere Marquette on August 23, 2025. In the past, camping was allowed south of the bathhouse and some RVs at Margaret Drake Elliott Park. There could be up to 300 tent sites and 30 RV campsites. Current policy states that approval must be given by the City Commission to have camping at an event. Policy also states the City Commission may opt to collect a percentage of camping revenue for larger events in lieu of $20 per night per camper or tent. Historically, this event had a fee of 10% of camping revenue instead of $20/site. The event charges $70 per tent site and $200 per RV site. Therefore, if 10% of camping revenue is used for the fee, the city cost would be $7 per tent site and $20 per RV site. If all sites were reserved, event fee camping revenue at $20/site would be $6,600 versus $2,700 at 10% of camping revenue. Burning Foot is also charged a Pere Marquette use fee for the space and all vehicles must have a parking pass. STAFF RECOMMENDATION: To authorize camping at Burning Foot at Pere Marquette and Margaret Drake Elliott on August 23, 2025, and accept 10% of their camping revenue as a fee to the City. Motion by Commissioner Kochin, second by Commissioner Kilgo, to authorize camping at Burning Foot at Pere Marquette and Margaret Drake Elliott on August 23, 2025, and accept 10% of their camping revenue as a fee to the City. ROLL VOTE: Ayes: German, Gorman, St.Clair, Johnson, and Kilgo Nays: Kochin MOTION PASSES N. Beach Concession Application - Shady Lay-Days Beach Chair and Umbrella Rentals DPW- Parks Page 16 of 19 The Parks Department has received an application from Shady Lay-Days to provide beach chair & umbrella rentals at Pere Marquette Park. The benefit for the City of Muskegon would be additional revenue as the concession policy states that vendors at this location would pay $1,000 + 5% of gross receipts. This would also allow visitors the convenience of renting a comfortable chair and umbrella during their time at the beach. Hours and frequency are to be determined, but this service will be offered on weekends and would use Indiana Ave. to house a trailer and has requested the use of an ATV to haul the equipment. STAFF RECOMMENDATION: Authorize staff to enter into an agreement with Shady Lay-Days for concession services at Pere Marquette Park. Motion by Commissioner Kochin, second by Commissioner German, to authorize staff to enter into an agreement with Shady Lay-Days for concession services at Pere Marquette Park. ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo Nays: None MOTION PASSES O. Water & Sewer Rate Changes 2025 Public Works Staff requests adoption of the two resolutions setting water and sewer rates for the fiscal year from July 1, 2025 to June 30, 2026. At the February Legislative Policy Committee meeting staff presented a synopsis of the water system finances, including that the water system has made significant progress toward solvency but remains in debt to other City funds by about $330,000 at the close of the 23-24 fiscal year. Staff is recommending no changes to the sewer rate, except for the updated debt service fee as described below. Staff recommends a 10% increase in the water commodity rate from $2.27 per unit to $2.50 per unit, and recommends the updated debt service fee described below. This is the third year of the debt service fee, and the second time it will be updated on an annual basis. This fee, when combined from all accounts, represents the total amount of debt paid in the prior fiscal year (for example, the fee proposed at this time will reimburse the system for the debt paid in the fiscal year ending June 30, 2024). Each year, staff will make an accounting of the amount of debt paid by each of the systems and will present adjustments to the fee for consideration by the Commission. This will more directly tie the projects the City performs to the amount of the water bill, and will allow the fee to be reduced as certain bonds or other debts fall off of the system books. The fee is distributed on a meter equivalency basis, meaning a typical residential account will pay the fee at a rate of “one,” while commercial and Page 17 of 19 industrial accounts will pay the fee at a potentially higher rate depending on the size of their water meter. Irrigation accounts will not pay the fee, assuming they are tied to a domestic water account at the same address. A breakdown of the meter equivalency calculations using factors from the American Water Works Association (AWWA) is available. The water system paid $1,192,364 in debt payments for the fiscal year ending June 30, 2024, and the sewer system paid $425,188 for the same period. Using the chart, the fee will be $5.98 per month for a residential account on the water system, and $2.13 per month for a residential account on the sewer system. This represents a $0.15 increase in the combined debt service fees compared to the current fees. City Code states that the City Commission sets the water and sewer rates by resolution. The resolutions will establish the rates and fees described herein, effective July 1, 2025. STAFF RECOMMENDATION: Adoption of the two resolutions setting water and sewer rates for the fiscal year from July 1, 2025, to June 30, 2026. Motion by Commissioner Kochin, second by Vice Mayor St.Clair, to adopt the two resolutions setting water and sewer rates for the fiscal year from July 1, 2025, to June 30, 2026. ROLL VOTE: Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, and German Nays: None MOTION PASSES 2025-58 NEW BUSINESS A. CRC Appointments and Resignation City Clerk Appoint a citizen to the Local Officer's Compensation Commission with an expiring term of January 31, 2032, accept the resignation of Thomas DeVoogd from the District Library Board, and accept the recommendation from the Board to appoint Brad Hastings for the remainder of the term expiring June 30, 2026. We currently have one opening and one application. The application is Philip Hickman who currently serves on the Equal Opportunity Committee. We also ask that the board accept the resignation of Thomas DeVoogd and consider the application for Brad Hastings to the District Library Board. STAFF RECOMMENDATION: Appoint a citizen to the Local Officer's Compensation Commission with an expiring term of January 31, 2032, accept the resignation of Thomas DeVoogd, and appoint Brad Hastings to the District Library Board with a term ending June 30, 2026. Page 18 of 19 Motion by Vice Mayor St.Clair, second by Commissioner Kilgo, to accept the resignation of Thomas DeVoogd, and appoint Brad Hastings to the District Library Board with a term ending June 30, 2026. ROLL VOTE: Ayes: Kochin, St.Clair, Johnson, Kilgo, German, and Gorman Nays: None MOTION PASSES ANY OTHER BUSINESS Commissioner German stated that he has concerns with all the development that has been going on reference property lines. Make sure we do everything we can to make sure everyone is satisfied. Mayor Johnson stated Senior Power Produce started today at the Muskegon Farmers Market and continues every Tuesday until money runs out. Summer Youth Evening Rec. Program, Path Finders is leading it and it is being held at Charles Hackley Middle School, Monday-Thursday through August 7, from 5:00 p.m. to 9:00 p.m., for ages 8-20. City Manager Jonathan Seyferth announced that those who were unable to attend the Shoreline Trails and Greenway Meeting last month can go online and complete the survey. Deputy City Manager LeighAnn Mikesell will be attending the July 22nd Meeting. Commissioner Kochin announced the Pop-Up Party is at Campbell Field, Wednesday, July 9th from 4:00 p.m. to 5:30 p.m.; and Street Performers will be in Lakeside, Thursday, July 10th 6:00 p.m. to 8:00 p.m. Mayor Johnson announced that the Food Trucks will be at the Muskegon Farmers Market, Wednesday, July 9th from 5:00 p.m. to 8:00 p.m. GENERAL PUBLIC COMMENT Public comments received. ADJOURNMENT The City Commission meeting adjourned at 8:55 p.m. Respectfully Submitted, Ann Marie Meisch, MMC City Clerk Page 19 of 19
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