CITY OF MUSKEGON
CITY COMMISSION MEETING
JANUARY 11, 2022 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
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, January 11, 2022.
Pastor Tom Beetham, Lakeside Baptist Church opened the meeting with prayer,
after which the Commission and public recited the Pledge of Allegiance to the
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Ken Johnson, Vice Mayor Willie German, Jr., Commissioners
Michael Ramsey, Teresa Emory, Rachel Gorman, and Rebecca St.Clair, City
Manager Franklin Peterson, City Attorney John Schrier, and City Clerk Ann Marie
Absent: Commissioner Eric Hood
HONORS, AWARDS, AND PRESENTATIONS:
A. Mr. Sims Ray City Service Recognition
Mr. Sims Ray has devoted 28 years as a caretaker of Smith Ryerson Park and
Community Center. He and his family have cleaned and maintained the park
as well as the community center. Mr. Ray has taken on a wide range of
activities from litter picking to meeting and greeting local residents and visitors
who rent the community center.
City staff would like to recognize the decades of service he provided to the
community by renaming the community center to Sims Ray Community
Center and installing a plaque dedicated to him to be placed in the
community center hall.
B. Audit Presentation – Eric VanDop of Brickley DeLong; Transmittal of 6/30/21
Comprehensive Annual Financial Report
Finance Director, Kenneth Grant, introduced Eric VanDop from Brickley
DeLong to present the Comprehensive Annual Financial Report to the City
Commission. Brickley DeLong has served as the auditor for the City for several
years. Mr. VanDop reviewed significant funds with the commission and gave a
general overview the report.
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PUBLIC COMMENT ON AGENDA ITEMS: No public comments received.
2022-04 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the December 14, 2021
STAFF RECOMMENDATION: To approve the minutes.
B. Transmittal of 6/30/2021 Comprehensive Annual Financial Report
SUMMARY OF REQUEST: The City’s June 30, 2021 Comprehensive Annual
Financial Repot (CAFR) has been distributed to the City Commissioners via email
and hard copy. The CAFR will also be available on the City’s website. The CAFR
includes the annual independent auditors report as required by state law. At this
time the CAFR is being formally transmitted to the City Commission. The CAFR
has been prepared in accordance with all current Governmental Accounting
Standards Board (GASB) pronouncements and also includes the single audit of
federal grants received by the City.
STAFF RECOMMENDATION: To accept the June 30, 2021 CAFR and authorize
staff to transmit the CAFR to appropriate Federal, State and private agencies.
C. ADA Project Funding Reallocation Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to revise the previously
approved allocations from the ADA project account for projects along Western
On September 14, 2021 the City Commission allocated $200,000 toward ADA
work int eh FY 21/22 budget as shown in line101-91116 between three projects as
• $120,000 – Frauenthal sidewalk replacement and snow melt system
• $40,000 – Streetscaping and sidewalk replacements along Western and
2nd at The Leonard
• $40,000 – 3rd to 5th Parking/Sidewalk flex space
Subsequent to the ADA distribution it was decided to dedicate ARPA dollars
towards the Frauenthal project. As such staff would like to adjust the previous
ADA allocation to redistribute the Frauenthal dollars to the other projects. The
proposed new distribution would be as follows:
• $100,000 - Streetscaping and sidewalk replacements along Western and
2nd at The Leonard
• $100,000 - 3rd to 5th Parking/ Sidewalk flex space
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The $100,000 allocation in conjunction with The Leonard will make that project
whole and complete everything required. The $100,000 allocation towards the
work on Western will need additional funding from the Major Street Fund in a
future reforecast to make the project whole. There is currently a budget surplus
in the Major Street fund for YT 21/22 to accommodate this revision and it will be
addressed in a future reforecast.
AMOUNT REQUESTED: $200,000 AMOUNT BUDGETED: $200,000
FUND OR ACCOUNT: 101-91116
STAFF RECOMMENDATION: Authorize staff to utilize the budgeted $200,000
allocation for ADA projects in partnership with The Leonard streetscaping and
sidewalk replacements and for a pilot project to construct flex parking/sidewalk
space along two blocks of Western Avenue between 3rd and 5th.
D. Amity Avenue (92009) – Change Order #001 Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to approve Change
order #001 on the Amity Avenue construction project.
Change Order #001 for the work on Amity Avenue is requesting approval to
increase the contract amount by $85,532.37 because of new items that were
required on the contract. The original contract amount was $4,138,499.30 and
this change order represents a 2% increase. The project budget carried a 6%
contingency and this increase will not exceed that contingency.
The Amity Avenue project will be a second change order needed for this
project to balance out the original items in the contract, which include many
unused items. The Engineer and Contractor are in the process of finalizing those
details. When Change Order #002 is finalized it is expected that it will be a net
decrease and offset much of the added cost in Change Order #001.
AMOUNT REQUESTED: $82,532.37 AMOUNT BUDGETED: $248,309.96
(6% of As-Bid)
STAFF RECOMMENDATION: Authorize staff to approve Changer Order #001
to the Amity Avenue project (590/591-92009).
E. Michigan & Franklin (92003) – Change Order #003 Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to approve Change
Order #003 on the Michigan & Franklin construction project.
Change Order #003 for the work on Michigan Avenue & Franklin Avenue is
requesting approval to increase the contract amount by $47,820.00
There are several small adjustments needed to the Michigan and Franklin
project that were identified as having been missed for previous payment during
final closeout between the Engineer and contractor. These are show as Line
items 1-4 and would not exceed the threshold for staff approval on their own.
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Additionally, there is one large extra item shown as Line item 5 which was added
onto this contract, but was completed at a different location. The storm sewer
outlet at Spring Street and Webster Avenue was found to be collapsed during
construction of the work on Spring Street, and required immediate emergency
repair to prevent flooding and damage. The Contractor for Spring Street was
unable to complete this work in a reasonable time frame due to prior
commitments and as such staff worked with our Engineer to solicit bids for this
work. Wadel Stabilization provided the low bid and was authorized to complete
this work in accordance wit the emergency purchasing policy. Adding this work
to an existing contract which was already in place with Wadel Stabilization
(Michigan & Franklin) allowed for all of the contract provisions and insurance to
remain in place to cover this additional work rather than starting from scratch.
Commission was notified via email on 9/24/2021 of the intent to utilize the
Emergency Purchasing provisions for this work.
AMOUNT REQUESTED: $47,820.00 AMOUNT BUDGETED: $47,820.00
FUND OR ACCOUNT: 202-92003 (Michigan & Franklin)
590-91851 (Spring Street)
STAFF RECOMMENDATION: Authorize staff to approve Change Order #003 to
the Michigan Avenue and Franklin Avenue project.
F. Prein & Newhoff – Laketon/Lakeshore Trail Connector Engineering
Assistance Public Works
SUMMARY OF REQUEST: Staff is requesting authorization to enter into a
Professional Services Agreement (PSA) with Prein & Newhof to provide grant and
engineering assistance related to a proposed new non-motorized trail.
This item pairs with another item on the agenda. See also the request for an
amendment to the PSA with Prein &Newhof for the Sanford Street Project.
Staff is planning to pursue a combination of TAP (Transportation Alternatives
Program – MDOT) and RTP (Recreational Trails Program – MDNR) funding to
provide the backbone financing for the construction of a planned trail
connection along Sanford and Terrace Streets. Preliminary meetings with both
state agencies have verified the project as a good candidate for both
programs as well as being a regional priority.
The proposed trail route would start at the intersection of Sanford/Laketon and
replace the eastern sidewalk along Sanford Street north to Apple Avenue. The
trail would cross Apple Avenue at the Signalized intersection (Apple/Sanford)
then follow north along the sidewalk on the southwest side of Terrace Street to
Shoreline Drive. The trail would cross Shoreline Drive at the signalized intersection,
cross the railroad at the existing sidewalk crossing then join the Lakeshore Trail.
While the opportunity for the grant funding is encouraging it does come with the
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consequence of requiring the non-motorized pathway project to be separated
entirely from the other utility work that is planned for Sanford Street. So, while
they could be constructed in near conjunction/succession (pending grants),
they must be administered entirely separately. In addition, the TAP/RTP funding
would require the non-motorized trail project to be administered as an MDOT
local agency program, which has a separate schedule and requirements from
the other utility projects.
As such, staff is requesting to enter into a separate PSA to administer the trail
project, and requesting a reduction in the original Sanford Street PSA to remove
some of the expense from that agreement related to incorporating the planned
trail. As these projects are best designed and planned concurrently by the same
team we have not solicited bids for this work but rather have requested a
proposal only from the team working on the Sanford Street utility project.
You’ll not that the new agreement costs more than the reduction to the existing
agreement. There are a number of reasons for that but the primary one is the
requirement that the projects be administered entirely separately creating
duplication of efforts in many areas. In addition, being an MDOT administered
local agency project carries additional requirements that increase the cost and
time required. However, if the project is successful in securing the noted grant
funding, the increase in the engineering costs will be more than offset by the
The Sanford Street utility project is still planned for 2023 construction. With a quick
turnaround and a successful grant application we could potentially pursue
TAP/RTP funding for the same fiscal year. There is a possibility that FY23 funding
through MDOT/MDNR will not be available in which case we may need to
consider 2024 funding and construction.
AMOUNT REQUESTED: $158,700 AMOUNT BUDGETED: $0
(FY21/22, 22/23, & 23/24) ($40k IN 21/22 via Future Reforecast)
FUND OR ACCOUNT: 202
STAFF RECOMMENDATION: Authorize staff to sign the professional services
agreement with Prein & Newhof to provide grant application assistance, design
engineering and construction administration related to a non-motorized
pathway along Sanford and Terrace Streets.
G. Prein & Newhoff – Sanford Street Engineering Assistance Amendment
SUMMARY OF REQUEST: Staff is requesting authorization to approve
Amendment #001 of the Professional Services Agreement (PSA) with Prein &
Newhof related to construction of a non-motorized pathway.
This item pairs with another item on the agenda. See also the request for
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approval of a Professional Services Agreement with Prien & Newof for the
Laketon/Lakeshore Trail Connector. More detail can be found under that item.
AMOUNT REQUESTED: -$61,000 AMOUNT BUDGETED: $400,000
(FY21/22, 22/23, & 23/24) (FY21/22 – Ref. 9/14/21 Comm. Agenda)
FUND OR ACCOUNT: 590/591
STAFF RECOMMENDATION: Authorize staff to sign the amendment to the
professional services agreement with Prein & Newhof related to removing the
non-motorized pathway work from the Sanford Street project.
H. Traffic Control Order 72 and 73 Traffic/Engineering
SUMMARY OF REQUEST: Staff is requesting approval of Traffic Control Orders 72
Traffic Control Order #72 includes a new Stop sign on Diana Avenue at the
approach to Ransom Street. This is a tee-intersection that was previously
Traffic Control Order #73 includes placement of Yield signs on Robinson Avenue
at the approach to Palmer Street. This is a 4-leg intersection that was previously
STAFF RECOMMENDATION: To approve traffic control orders #72 and #73
and authorize staff to make the necessary sign changes.
I. 2021-2022 School Resource Officer Agreement Public Safety
SUMMARY OF REQUEST: Review and approve the School Resource Officer
Agreement proposed for employment of one Muskegon Police Department
officer for the 2021-2022 school year. This agreement includes a 3% increase
from 2021, for a total of $24,916.73 paid to the City of Muskegon between
September 2021 and June 2022.
STAFF RECOMMENDATION: To approve the contract with Muskegon High
School for the 2021-2022 School year.
J. Sale – 1461 Nolan Avenue Planning
SUMMARY OF REQUEST: City staff is seeking authorization to sell the City owned
vacant lot at 1461 Nolan Avenue to Aleschia Loughridge. Ms. Loughridge would
like to purchase the City owned buildable lot at 1461 Nolan Avenue for $3,675
(75% of the True Cash value of $4,900) plus half of the closing costs and the fee
to register the deed. Ms. Loughridge will be constructing a single-family home on
STAFF RECOMMENDATION: Authorize the Code Coordinator to complete the
sale of 1461 Nolan Avenue as described in the purchase agreement and to
have the Mayor and Clerk sign the deed.
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K. 1095 Third Street RFP Response Economic Development
SUMMARY OF REQUEST: Catholic Charities is in the final stages of relocating
from their former offices at 1095 Third Street to their new location. The
department has received one response for the Request for Proposals that was
approved by commission, and seeks commission approval to move forward with
the developer in drafting a Purchase and Development Agreement.
Over the last several months the City’s Economic Development team has
showed the former Catholic Charities site to a number of both local and
regional potential developers. In the end, one developer, Suburban Property
LLC, replied with a well composed and feasible development proposal. This
developer has been working for some time on getting into the market in the
Muskegon area, and has brought on well-regarded and credentialed architects
and contractors. Staff has reviewed the proposal, and supports the program it
contains for phased redevelopment of all three lots. The first phase would
include the adaptive reuse of the existing building, with all three floors of the
structure being used for market-rate apartments. The next phase would be 8
two-story town homes along Houston, and finally a 3-4 story mixed use building
on the corner of Muskegon and Third.
STAFF RECOMMENDATION: To name Suburban Property, LLC the Preferred
Developer for the City-owned property at 1095 Third Street, and to direct staff to
draft a purchase and development agreement for commission consideration.
Motion by Commissioner Ramsey, second by Commissioner Gorman, to accept
the consent agenda as presented.
ROLL VOTE: Ayes: Johnson, Ramsey, German, Gorman, Emory, and St.Clair
2022-05 NEW BUSINESS:
A. Sales Agreement 2725 Olthoff City Manager - REMOVED
B. Pere Marquette Parking Improvements Public Works
SUMMARY OF REQUEST: Staff is seeking approval to enter into an Engineering
Services Agreement (ESA) with DLZ for completion of the Parking Revisions at
Pere Marquette Park.
This topic was discussed at the work session meeting on January 10, 2022 with
the recommended motion set to reflect the outcome of that meeting.
AMOUNT REQUESTED: $53,150.00 or $71,265.00 AMOUNT BUDGETED: $0
FUND OR ACCOUNT: 101-92016-5300
STAFF RECOMMENDATION: Move to authorize the DPW Director to negotiate
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and sign a modified Engineering Services Agreement with DLZ Inc. for pedestrian
and parking improvements at Pere Marquette Park. Modifications to the
presented agreement will include; selection of the Option #2 design for the one-
way single angle parking, removal of the surveying and design engineering for
the trail north of the Bathhouse, Revising the proposed trail width to 16 FT, and
including design considerations for use of the northern most row of parking in the
ovals lot as flexible space for potential future use by chalets or other concession
Motion by Commissioner Ramsey, second by Commissioner Gorman, to
authorize the DPW Director to negotiate and sign a modified Engineering
Services Agreement with DLZ Inc. for pedestrian and parking improvements at
Pere Marquette Park. Modifications to the presented agreement will include;
selection of the Option #2 design for the one-way single angle parking, removal
of the surveying and design engineering for the trail north of the Bathhouse,
Revising the proposed trail width to 16 FT, and including design considerations
for use of the northern most row of parking in the ovals lot as flexible space for
potential future use by chalets or other concession operations.
ROLL VOTE: Ayes: Ramsey, German, Gorman, Emory, St.Clair, and Johnson
C. Development Agreement – West Urban City Manager
SUMMARY OF REQUEST: Staff is seeking approve the development agreement
for West Urban Properties.
West Urban Properties was selected as one of three contractors for the ARPA-
funded infill housing program. The goal of the program is to continue in-filling
vacant lots in our core neighborhoods while ensuring the housing units are
offered in a more affordable manner.
Staff awaits final guidance from the US Treasury related to level of affordability
but we expect that a portion of the homes will be designated to families with
incomes between 60% and 80% of AMI. The City will maintain ownership of the
infill sites throughout the construction process, and will control the sales process.
The City Commission will decide on each formal sale at the time of the sale –
similarly to the Midtown Square projects. This will allow the City Commission more
discretion in determining the depth of the affordability component of the
The most notable change from the model agreement previously presented to
the City Commission in 2021 is the anticipated cost per house. We have raised
the maximum to $235,000 to address increases in materials. While wood costs
are down, it seems that all other material costs are up.
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Access to housing at all levels of affordability is difficult now. We are in a prime
position to lead the county in new housing while addressing the lack of livable
housing for lower income earners, and I recommend that we do so. Note that
the addresses are not included. There are hundreds of addresses to select from,
but many were acquired via the tax foreclosure process and have title issues to
address. Staff feels comfortable working with the builder to identify the most
appropriate building sites that have clear title.
AMOUNT REQUESTED: $3,125,000 AMOUNT BUDGETED: $0
FUNDS: State/Federal Grants
STAFF RECOMMENDATION: To approve the development agreement and
authorize the City Manager to sign.
Motion by Commissioner Ramsey, second by Commissioner St. Clair, to approve
the development agreement and authorize the City Manager to sign.
ROLL VOTE: Ayes: Ramsey, German, Gorman, Emory, St.Clair, and Johnson
PUBLIC COMMENT ON NON-AGENDA ITEMS: No public comments were
ADJOURNMENT: The City Commission meeting adjourned at 6:45 p.m.
Ann Marie Meisch, MMC – City Clerk
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