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CITY OF MUSKEGON CITY COMMISSION MEETING JUNE 22, 2004 CITY COMMISSION CHAMBERS @ 5:30 P.M. 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, June 22, 2004. Mayor Warmington opened the meeting with a prayer from Pastor Julie Winklepleck from the Immanuel Lutheran Church after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL FOR THE REGULAR COMMISSION MEETING: Present: Mayor Stephen Warmington, Vice Mayor Bill Larson, Commissioner Kevin Davis and Lawrence Spataro, City Manager Bryon Mazade, City Attorney John Schrier and City Clerk Gail Kundinger. Absent: Commissioner Stephen Gawron, Clara Shepherd, and Chris Carter (all were excused). 2004-56 CONSENT AGENDA: A. Approval of Minutes. CITY CLERK SUMMARY OF REQUEST: To approve the minutes of the Special Commission Meeting that was held on Wednesday, June 2, 2004; the Commission Worksession that was held on Monday, June 7, 2004; and the Regular Commission Meeting that was held on Tuesday, June 8, 2004. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. B. Fireworks Display – Nickelback Concert at the Muskegon Summer Celebration. CITY CLERK SUMMARY OF REQUEST: Stage & Effects Engineering is requesting approval of a fireworks display permit for June 25th for the Nickelback Concert at the Muskegon Summer Celebration. Fire Marshall Metcalf will inspect the fireworks. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval contingent on inspection of the fireworks. C. Annual Carriage License Renewal – Muskegon Carriage Co. CITY CLERK SUMMARY OF REQUEST: To approve the request to license two (2) carriages for operation in the City of Muskegon for the 2004-2005 licensing year. Sgt. Shirey has inspected the carriages and approves this request. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval. D. Liquor License Request – GFB, LLC, 1920 Lakeshore. CITY CLERK SUMMARY OF REQUEST: The Liquor Control Commission seeks local recommendation on a request from George F. Bailey to transfer ownership of the 2003 Class C-SDM Licensed Business with Dance Permit from Jimmy R. Benson; and to transfer location from 2805 Sixth Street, Muskegon Heights. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval contingent upon final inspection. E. Liquor License Request – Opportunity, LLC, 978 Pine Street. CITY CLERK SUMMARY OF REQUEST: The Liquor Control Commission seeks local recommendation on a request from Opportunity, LLC to transfer interest in the 2003 Class C-SDM Licensed Business with Dance-Entertainment Permit by adding Ann Marie Mahan-McAllister as a new member through transfer of 40% interest from existing member, Malachi F. Williams. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval. F. Liquor License Request – RND Entertainment, Inc., 1635 Beidler. CITY CLERK SUMMARY OF REQUEST: The Liquor Control Commission seeks local recommendation on a request from Diana and Robert Schweifler to transfer ownership of the 2004 Class C Licensed Business with dance permit from Star 4, Inc., DBA Westside Inn, and request a new entertainment permit. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval. G. Liquor License Request – Billing Corporation, 2390 W. Sherman. CITY CLERK SUMMARY OF REQUEST: The Liquor Control Commission seeks local recommendation on a request from Billing Corporation to transfer ownership of the 2003 SDD & SDM Licensed Business from Karamsar Corporation, DBA Super Stop Food. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval. H. Liquor License Request – Lakeview Market, LLC, 1930 Lakeshore Drive. CITY CLERK SUMMARY OF REQUEST: The Liquor Control Commission seeks local recommendation on a request from Gary Samples and Laureen Felinski-Samples to transfer ownership of the 2003 SDM Licensed Business with gas pumps from Marilyn J. Felinski. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval. I. Resolution to Allow Staff Approval of $1 Lots. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: In order to sell more City-owned lots, thus relieving the burden of maintaining the large number of tax-reverted property that the City has in its inventory, the City Commission approved the Dollar Lot Marketing Plan in late 2003. In the policy, final approval of sales is given to the City Commission. Staff approval of these lots would expedite the sale of these lots, as well as save time and manpower in the process. In unusual circumstances, approval would still be sought from City Commission. FINANCIAL IMPACT: There would be a saving in staff time to process the sale of $1 lots. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Staff recommends approval of the request to allow the Planning Department staff authority to finalize the $1 lots sale, except in exceptional cases. J. Nine-Month Extension to Complete Construction of Home. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve a nine-month extension to allow Mr. Lartice Jones extra time to complete construction of a single-family home at 1292 Ducey Avenue. The original agreement between the City and Mr. Jones stipulated that construction of the home was to be completed within 18 months. The City has customarily granted extensions to persons who have shown that they are dedicated to completing construction and contributing to the beautification of the City’s residential areas. Mr. Jones was recently laid off from his job and needs time to find another one. Since his 18 months isn’t up until September, he feels that an additional nine months will allow him enough time to secure a job and move forward with constructing his home. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Staff recommends approval of the time extension, as well as authorization for both the Mayor and the Clerk to sign the resolution and deed. K. Establishment of Historic District Commission (HDC) Study Committee. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To appoint a study committee to determine whether the buildings located at 1208 and 1204 Eighth Street should be designated as a historic district. This committee will perform the necessary research on the Boilerworks property, as well as the adjacent “yellow building” for the purpose of making a recommendation to the Michigan Historical Commission and State Historic Preservation Review Board (SHPO) regarding the establishment of an historic district. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution establishing a study committee for the Boilerworks property. Staff also recommends appointing Lonna Anguilm as staff to the study committee. COMMITTEE RECOMMENDATION: Historic District Commission (HDC) recommends the creation of the study committee, as well as the appointment of the following persons to the study committee: Daniel Chambers, Annette Medema, and Jon Colburn. L. Sale of Non-Buildable Lot at 1660 Seventh Street. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the sale of a vacant non-buildable (Parcel #24-205-440-0004-00) at 1660 Seventh Street to Theresa Strother, 1640 Seventh Street, Muskegon, MI. Approval of this sale will allow the owner to have a home located on a buildable lot and also to expand her current yard. This parcel is a portion of a larger lot composed of 3 combined lots and will be offered to Ms. Strother for $1 under the Dollar Lot Marketing Plan. FINANCIAL IMPACT: The sale of this lot will allow the property to be placed back on the City’s tax rolls, thus relieving the City of continued maintenance costs. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and to authorize both the Mayor and the Clerk to sign the resolution and deed. M. Sale of Non-Buildable Lot at 1858 S. Getty Street. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the sale of a vacant non-buildable lot (Parcel #24-215-001-0009-00) at 1858 S. Getty Street to Rebecca Stout, owner of 1852 S. Getty Street and Lucille Homan, 1862 S. Getty Street, Muskegon, MI 49442. Approval of this sale will allow both property owners to own houses located on a buildable lot, as well as allowing both to expand their current yards. As is required by City policy, the subject parcel is being offered for $1 to each property owner, and will be split between Ms. Stout and Ms. Homan under the Dollar Lot Policy. FINANCIAL IMPACT: The sale of this lot will allow the property to be placed back on the City’s tax rolls thus relieving the City of continued maintenance costs. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and to authorize both the Mayor and the Clerk to sign the resolution and deed. N. Sale of Buildable Vacant Lot at 812 Murphy Street. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 812 Murphy Street (Parcel #24-205-200-0006-00) to Neighborhood Investment Corporation (NIC) of 1115 Third Street, Muskegon, MI. The lot is 140 x 66ft. and is being offered to NIC for $3,000. The lot will be combined with other private and City properties as part of the Farmer’s Market Area Housing Development. The True Cash Value (TCV) for the property listed in the Assessor’s office is $4,000, so our price is set at $3,000 which is 75% of that amount. FINANCIAL IMPACT: The sale of this lot, as well as two others, for construction of several new homes will generate additional tax revenue for the City and will place the property back on the City’s tax rolls thus relieving the City of continued maintenance costs. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and to authorize both the Mayor and the Clerk to sign said resolution and deed. O. Sale of Buildable Vacant Lot at 243 E. Walton Avenue. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot a 243 E. Walton Avenue (Parcel #24-205-200-0001-00) to Neighborhood Investment Corporation (NIC), of 1115 Third Street, Muskegon, MI. The lot is 297 x 141 ft. and is being offered to NIC for $6,000. The lot will be combined with other private and City properties as part of the Farmer’s Market Area Housing Development. The True Cash Value (TCV) for the property listed in the Assessor’s office is $8,000, so our price is set at $6,000 which is 75% of that amount. FINANCIAL IMPACT: The sale of this lot, as well as two others, for construction of several new homes will generate additional tax revenue for the City and will place the property back on the City’s tax rolls thus relieving the City of continued maintenance costs. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and to authorize both the Mayor and the Clerk to sign said resolution and deed. P. Purchase of 867 Williams. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the purchase of the property located at 867 Williams (City of Muskegon Revised Plat of 1903 Lot 15 Block 46) for the estate of Cornor White for the price of $6,850. If the purchase is approved, the CNS Office will solicit bids to totally rehabilitate the structure at 867 Williams and then market the home to a qualified low/moderate-income family which will continue the City aggressive neighborhood revitalization efforts. FINANCIAL IMPACT: Funding for the purchase and rehabilitation will be deducted from the City’s 2002 HOME funding. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the sale. Q. Approval of Contract for Next Phase of Operation: At Long Last – AKA “Iona Home Sweet Home” 284 Iona. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the contract with Top Notch Design 4740 Jensen, Fruitport for the amount of $108,000 dollars for the construction of the new home at 284 Iona. The other contractors who submitted bids for this project were: Bantam Group 962 Stonewood, Spring Lake $115,691 Wasco Construction 210 E. Broadway, Muskegon $113,350 Success Enterprise 5263 Apple Ave., Muskegon $116,000 The Iona project is the next phase of infill construction on the “old Turnkey Three” sites that were finally demolished by the City last summer. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: Funding will come from 2002 HOME funding. STAFF RECOMMENDATION: To approve the contract with Top Notch Design for the next At Long Last Project AKA Iona Home Sweet Home for $108,000. COMMITTEE RECOMMENDATION: The LRC approved this project. T. Upgrade of Garage Ventilation System. PUBLIC WORKS SUMMARY OF REQUEST: We propose to upgrade the existing vehicle garage ventilation system from continuous to on-demand operation. The newly installed heaters do not require ventilation so the only need is to vent vehicle exhaust fumes. Fume sensors would turn on ventilation as needed. The energy savings payback is estimated to be a little over 1 year. The low bid of three taken is $28,157 from East Muskegon Roofing. FINANCIAL IMPACT: This expense would be covered by the Public Service Building capital budget. BUDGET ACTION REQUIRED: None needed. STAFF RECOMMENDATION: Install the on-demand ventilation upgrade. U. Set Public Hearing for Amendments to Brownfield Plan – Terrace Lots Office Building, Northern Machine Tool, Art Works Apartments (Former Boiler Works Building). PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve the resolution setting a public hearing for amendments to the Brownfield Plan, and notify taxing jurisdictions of the Brownfield Plan Amendments, including the opportunity to express their views and recommendations regarding the proposed amendments at the public hearing. The amendments are for the inclusion of property owned by MSB II, LLC for the Terrace Lots Office Building (former Westwood Building); Steve Olsen, for Northern Machine Tool; and Boilerworks LLC for the Art Works Apartments (former Boiler Works Building), in the Brownfield Plan. FINANCIAL IMPACT: There is no direct financial impact in including the projects in the Brownfield Plan, although the completion of the former Westwood building, which will be used for commercial space, the addition of the building to Northern Machine Tool for increased manufacturing and the redevelopment of the Boiler Works Building into Artists Lofts and Galleries, will eventually add to the tax base in Muskegon. BUDGET ACTION REQUIRED: NONE. STAFF RECOMMENDATION: To approve the resolution and authorize the Mayor and Clerk to sign the resolution. COMMITTEE RECOMMENDATION: The Brownfield Redevelopment Authority approved the Brownfield Plan Amendment for Northern Machine Tool, Terrace Lots Office Building and Art Works Apartments and recommend that the City Commission set a public hearing on the Plan Amendments for July 13, 2004. Motion by Commissioner Spataro, second by Commissioner Davis to approve the Consent Agenda with the exception of items R, S, and V. ROLL VOTE: Ayes: Larson, Spataro, Warmington, Davis Nays: None MOTION PASSES 2004-57 ITEMS REMOVED FROM THE CONSENT AGENDA: R. Approval of Quit Claim for the Purchase of City-Owned House at 361 Oak. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the sale of the City-owned property at 361 Oak to Ms. Lisa Fox of 2147 7th St, a first-time homebuyer for the price of $111,000 with a subsidy of $26,000. The site at 361 Oak is the former site of an old Turnkey 3 home that was demolished last year during the Operation At Long Last AKA Shangaliwa Celebration. The demolition of the former structure, the construction and sale of the new home is one more example of the City’s aggressive efforts to revitalize our neighborhoods by eliminating blight and promoting homeownership. FINANCIAL IMPACT: The City will receive approximately $80,000 that will be deposited in the HOME account. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the sale and direct the Mayor and City Clerk to sign the Quit Claim. Motion by Commissioner Spataro, second by Commissioner Davis to approve the sale of City-owned property at 361 Oak to Ms. Lisa Fox. ROLL VOTE: Ayes: Larson, Spataro, Warmington, Davis Nays: None MOTION PASSES S. Approval of Quit Claim for the Purchase of City-Owned House at 351 Erickson. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve the sale of 351 Erickson a totally rehabilitated home under the Jackson Hill Urban Renewal project #2 (We Got It Right This Time) for the amount of $82,500 to Mr. Alvin Singleton of 1186 Jefferson a first-time homebuyer. The home was appraised at $96,000 with a subsidy of $13,500. The Erickson project is another fine example of the City of Muskegon continuous efforts to upgrade its existing housing stock and to revitalize its neighborhoods. FINANCIAL IMPACT: The City will receive approximately $78,000 in program income that will be deposited in the HOME account. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the resolution and direct the Mayor and City Clerk to sign the Quit Claim. COMMITTEE RECOMMENDATION: Project was approved by the LRC. Motion by Commissioner Spataro, second by Commissioner Davis to approve the sale of 351 Erickson to Mr. Alvin Singleton. ROLL VOTE: Ayes: Spataro, Warmington, Davis, Larson Nays: None MOTION PASSES V. Agreement for Engineering Services. ENGINEERING SUMMARY OF REQUEST: Authorize staff to enter into an agreement with Douglas V. Ericksen to provide assistant to the Engineering Department in the capacity of a Civil Engineer. As you may recall, Mr. Ericksen worked for the City for over 30 years until retiring in 2002 as a Civil Engineer. This short-term contract, if approved, is necessary to overcome the shortage in experienced staff needed to provide construction engineering for the most part. Furthermore, it is respectfully requested that staff be authorized to extend and/or terminate said agreement to best serve the City. FINANCIAL IMPACT: Approximately $8,000 based on an estimated 400-hours of work. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To authorize staff to enter into an agreement with Mr. Ericksen. Motion by Vice Mayor Larson, second by Commissioner Davis to enter into an agreement for engineering services with Douglas V. Ericksen. ROLL VOTE: Ayes: Spataro, Warmington, Davis, Larson Nays: None MOTION PASSES 2004-58 UNFINISHED BUSINESS: A. Rezoning Request for Property Located at 955 W. Laketon. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Request to rezone property located at 955 W. Laketon, from B-4, General Business to RT, Two Family Residential. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Staff recommends denial of the request due to lack of compliance with the future land use map and Master Land Use Plan. COMMITTEE RECOMMENDATION: The Planning Commission voted to deny the request at their 3/11 meeting and recommended that the City Commission ask the ZBA to reconsider the hardship application for this property. The denial request was approved with Commissioners S. Warmington, B. Smith, and T. Michalske voting nay. T. Johnson was absent. Motion by Vice Mayor Larson, second by Mayor Warmington to approve the request to rezone the property located at 955 W. Laketon. ROLL VOTE: Ayes: Warmington, Davis, Larson, Spataro Nays: None MOTION PASSES (REQUIRES A SECOND READING) 2004-59 NEW BUSINESS: A. Rezoning Request for Property Located at 407 Marquette Avenue (SE Corner of Marquette Ave. and Wood St.). PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Request to rezone property located at 407 Marquette Ave., at the SE corner of Marquette Ave. and Wood St., from R-1, Single-Family Residential to B-1, Limited Business. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Staff recommends denial of the request due to lack of compliance with the future land use map and Master Land Use Plan. COMMITTEE RECOMMENDATION: The Planning Commission voted to deny the request at their 6/10 meeting. Commissioners S. Warmington and B. Smith voted against denial. Commissioner B. Mazade was absent. Motion by Vice Mayor Larson, second by Commissioner Spataro to table this item until staff can work out details. ROLL VOTE: Ayes: Davis, Larson, Spataro, Warmington Nays: None MOTION PASSES B. Consumer’s Energy Fencing. LEISURE SERVICES SUMMARY OF REQUEST: To award a contract to Outback Fencing to install a fence between the bike trail and Consumers Energy along the Causeway. FINANCIAL IMPACT: Cost of $24,960 to be split 50/50 with Consumers. BUDGET ACTION REQUIRED: None, money to come from trail fund. STAFF RECOMMENDATION: Approve. Motion by Commissioner Spataro, second by Vice Mayor Larson to award the contract to Outback Fencing to install the fence. ROLL VOTE: Ayes: Larson, Spataro, Warmington, Davis Nays: None MOTION PASSES C. Intergovernmental Agreement; Muskegon Township; Harvey and Stebbins Rd; Watermain, Sewer and Streets. PUBLIC WORKS SUMMARY OF REQUEST: Request approval of an intergovernmental agreement with Muskegon Township for the construction of watermain, streets and sanitary sewer within Harvey Street (City of Muskegon) and Stebbins Road (Muskegon Township). These utilities will accommodate the construction of the new High Tech Center and Muskegon Township Water District improvements. FINANCIAL IMPACT: To be financed from contributions from Muskegon Township and the Muskegon Area Intermediate School District. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval. Motion by Commissioner Spataro, second by Vice Mayor Larson to approve the agreement subject to approval by the Township. ROLL VOTE: Ayes: Larson, Spataro, Warmington, Davis Nays: None MOTION PASSES D. Consideration of Bids – Harvey St.-Stebbins, Marquette to Quarterline ENGINEERING SUMMARY OF REQUEST: Award to Jackson Merkey of Muskegon the contract (H- 1573) to construct-reconstruct Harvey & Stebbins from Marquette to Quarterline along with a new water main and sanitary sewer for the TWP. Jackson Merkey Contractor was the lowest responsible bidder with a bid price of $752,790.90. Furthermore, it is respectfully requested that the award, if granted, be contingent upon the execution of agreements between the City-TWP & City- MAISD. Those agreements are necessary to defray the project cost, which are expected no later than the end of June. FINANCIAL IMPACT: Limited to the design cost. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Award the contract to Jackson Merkey Contractor. Motion by Vice Mayor Larson, second by Commissioner Spataro to award the contract to Jackson Merkey contingent upon approval by MAISD and the Township. ROLL VOTE: Ayes: Spataro, Warmington, Davis, Larson Nays: None MOTION PASSES E. Intergovernmental Agreement; Muskegon Intermediate School District; Harvey and Stebbins Rd; Watermain and Streets. PUBLIC WORKS SUMMARY OF REQUEST: Request approval of an intergovernmental agreement with MAISD for the construction of watermain and streets within Harvey Street (City of Muskegon) and Stebbins Road (Muskegon Township). These utilities will accommodate the construction of the new High Tech Center and Muskegon Township Water Districts improvements. FINANCIAL IMPACT: To be financed from contributions from Muskegon Township and the Muskegon Area Intermediate School District. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval. Motion by Commissioner Davis, second by Vice Mayor Larson to approve the agreement contingent upon approval of attorneys. ROLL VOTE: Ayes: Spataro, Warmington, Davis, Larson Nays: None MOTION PASSES F. Request to Establish a Pay Range-Police Records Supervisor. PUBLIC SAFETY SUMMARY OF REQUEST: Police Department staff request that the Commission consider our request for an increase in the pay grade for the Police Records Supervisor position. As a result of organizational changes within the department, the position of Administrative Aide was eliminated and has been replaced with that of Police Records Supervisor. The new job description has been approved by the Civil Service Commission. The requested pay-grade change is as follows: Administrative Aide: $27,538 - $36,720 Police Records Supervisor: $33,698 - $44,933 FINANCIAL IMPACT: As a result of salary savings from open positions, funds are available for this pay grade change. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of this request. Motion by Commissioner Spataro, second by Vice Mayor Larson to approve the request to establish a pay range for the Police Records Supervisor. ROLL VOTE: Ayes: Warmington, Davis, Larson, Spataro Nays: None MOTION PASSES The meeting was adjourned at 6:35 p.m. Respectfully submitted, Gail A. Kundinger, MMC City Clerk
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