City Commission Minutes 12-13-2022

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       CITY OF MUSKEGON
        CITY COMMISSION MEETING
        DECEMBER 13, 2022 @ 5:30 P.M.
   MUSKEGON CITY COMMISSION CHAMBERS
  933 TERRACE STREET, MUSKEGON, MI 49440


                                 MINUTES

The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, December 13,
2022, Reverend Diane Stark from Unity of Muskegon, opened the meeting with a
prayer, after which the Commission and public recited the Pledge of Allegiance
to the Flag.
Present: Mayor Ken Johnson, Vice Mayor Willie German, Jr., Commissioners
Rachel Gorman, Michael Ramsey, and Teresa Emory, City Manager Jonathan
Seyferth, City Attorney John Schrier, and City Clerk Ann Meisch.
Absent: Commissioners Michael Ramsey and Rebecca St.Clair
HONORS, AWARDS, AND PRESENTATIONS:
  A. Recognition of 9/11 Event Participants by BSA Troop 1053
Dave Paulson, Scout Master of Troop 1053, and Eagle Scout Parker Macjewski
presented certificates of Appreciation and Recognition to participants from two
separate 9/11 events that were held at the USS LST 393 and USS Silversides. Those
recognized included Mayor Johnson, 92nd District State Representative Terry
Sabo, 34th District State Senator Jon Bumstead, Master of Ceremonies, James
Flood, and Petty Officer First Class Jeff Fisher. An appreciation certificate and
event patch were presented to each participant that was in attendance. All
are invited to attend the events next year on September 11, 2023 at both the
USS LST 393 and USS Silversides.

  B.   Recognition of Muskegon Police Officers
Public Safety Director, Chief Tim Kozal, recognized three officers of the
Muskegon Police Department - Mike Lamsma promoted to Sergeant in 2018 and
recently retired. Sergeant John Burns, promoted to his current position on
December 22, 2022. Officer Al Hairston received the Black Magic Award from
the Young Black Professionals Group on November 28, 2022 for serving as a
positive role model.

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  C. New Staff Introductions – Planning & Economic Development
Jake Eckholm, Development Services Director, introduced Contessa Hood,
Development Analyst, a new hire in the department. Contessa was born and
raised in Muskegon, graduated from Reeth's Puffer and Central Michigan
University and is excited to be here after being away from Muskegon for several
years.

  D. Resolution Presentation to Leo Evans, Outgoing Director of Department of
     Public Works
Mayor Johnson presented Leo Evans, Department of Public Works Director, with
a resolution recognizing his service to the City of Muskegon. We all wish him the
best at his new position in Colorado.

PUBLIC COMMENT ON AGENDA ITEMS:             No public comments received.
2022-103    CONSENT AGENDA:
  A. Approval of Minutes       City Clerk
SUMMARY OF REQUEST: To approve the minutes of the November 7, 2022
Worksession Meeting.
STAFF RECOMMENDATION:          To approve the minutes.
  B.   Sale of 1318 Pine Street City Manager
SUMMARY OF REQUEST: Staff is requesting approval of the purchase agreement
for 1318 Pine Street.
1318 Pine Street was constructed through the agreement with Dave Dusendang
to construct infill housing with ARPA funding.
STAFF RECOMMENDATION:          To approve the purchase agreement for 1318
Pine Street.
  D. Non-Union Part Time & Limited Term Wage Matrix EEO & Employee
     Relations
SUMMARY OF REQUEST: This is the proposed non-union, part-time and limited-
term wage matrix for 2023.
STAFF RECOMMENDATION:          Approve the non-union, part-time and limited-
term wage matrix for 2023.
  E.   Amendments to the Muskegon Social Equity Program Application
       Planning
SUMMARY OF REQUEST: Request to amend the programs and the requirements
for the Muskegon Social Equity Program and associated application.
Changes include:

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   •   Clarified how much funding an applicant may receive (Up to $10,000
       unless approved by the Commission).
   •   For “Education/Training Scholarship”, “Business Start-Up Grant” and
       “Business Start-Up Loan”, added a stipulation that a parent could also
       have had the conviction while the applicant was in school.
   •   Created a new category, the “Marihuana Industry Training Scholarship”.
       This is for residents that want to get into the marihuana industry. There are
       more options to qualify for this than the “Education/Training Scholarship.”
   •   Removed the “Marihuana Equipment Grant” category since it could be
       covered by the “Business Start-Up Grant.”
STAFF RECOMMENDATION:        To approve the changes to the Muskegon Social
Equity Program and associated application as presented.
  F.   Roberts Street Reconstruction Award Public Works
SUMMARY OF REQUEST: Staff is requesting approval of a contract with
McCormick Sand, Inc. in the amount of $828,230.30 for the reconstruction of
Roberts Street from Sherman to Laketon, with $372,703.61 being covered by a
TEDF Category F grant from MDOT.
On November 7, 2022, Commission approved a grant agreement with MDOT
that awarded up to $375,000 to the City for a Transportation Economic
Development Fund (Category F) Grant, with the specific amount being 45% of
the construction contract.
The City received bids on November 28, 29022, and McCormick Sand, Inc. was
the low bidder at $828,230.30. The grant, at 45%, will cover $372,703.64 of the
project cost, leaving $455,526.66 for the City to pay out of the highway fund. The
bids came in substantially below the estimate, so this request is for over $200,000
less than was authorized at the time of the grant agreement. McCormick Sand
has performed admirable for the City in the past, and staff recommends award.
AMOUNT REQUESTED:         $455,546.66    AMOUNT BUDGETED: $825,000 Requested
                                                              $31,880.07 Expended
                                                             $793,119.93 Remaining
FUND OR ACCOUNT:          202 (Major Streets)
STAFF RECOMMENDATION:          Approval of the contract with McCormick Sand,
Inc. in the amount of $828,230.30 for the reconstruction of Roberts street from
Sherman to Laketon.
  I.   Muskegon Conservation District (MCD) Native Planting Project
       Public Works
SUMMARY OF REQUEST: Staff is requesting a letter of support and commitment


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of matching funds to support a joint initiative with the Silversides Museum and
the Muskegon Conservation District for a native planting project.
The Silversides Museum has worked with the City and Muskegon Conservation
District (MCD) to identify several areas surrounding the museum campus that
they would like to see converted into native plantings. Much of the area is
currently maintained as lawn and provides limited recreational/pollinator value
while requiring routine maintenance to maintain. The conversion of these areas
to native plantings would achieve all of the goals outlined on page 2 of the
2018 Urban Pollinator Habitat Plan. This area was not specifically identified in the
2018 plan, however most of the areas that were identified have already been
accomplished or have run into obstacles that have prevented or delayed
implementation.
The project has received a letter of support from the Silversides Museum who is
currently responsible for the maintenance of a portion of the designated area,
and is also supported by City staff that maintain the remainder of the area. Staff
from the Silversides Museum has also engaged the Beachwood-Bluffton
Neighborhood Association and has solicited a letter of support from that group.
Staff from the Silversides Museum will also be engaging with the six (6) residents
along Channel Drive regarding the conversion of the property across from them.
MCD is currently in the process of applying for a grant through the Wildflower
Association of Michigan to partially fund this project and is seeking a formal
letter of support from the City, authorization to use the property (City is the
underlying land owner of all the impacted property), and a commitment of up
to $4,500 in matching funds to support the invoiced implementation costs. In
addition, the city will provide in kind services to support the implementation
should the grant be successful by assisting with yard waste removal and
cleanup on the site. A majority of the work will be completed by MCD staff with
assistance from volunteer groups organized through the Silversides Museum.
Though this project was not specifically identified in the initial budget drafting
the expense is relatively small and staff is comfortable that it can be allocated
within the existing Parks budget with minimal to no adverse impacts.
AMOUNT REQUESTED:         $4,500             AMOUNT BUDGETED: $0
FUND OR ACCOUNT:          101-770 (Parks Maint)
STAFF RECOMMENDATION:           To authorize the DPW Director to sign the letter of
support, the grant authorization and the property access letter, the MCD
Cooperator Agreement and commit up to $4,500 in matching funds towards the
project implementation should the grant be successful.
  J.   MDNR SPARK Grant Resolution Public Works
SUMMARY OF REQUEST: Staff is requesting approval of the resolution for
inclusion with our SPARK Grant Application due on December 19, 2022.

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Staff has been working to identify a potential target project for the newly
established MDNR SPARK Grant program and based on previous staff
recommendation and commission action staff is working towards submitting a
packet related to reconstruction of the Muskegon Splash Pad.
An RFP was issued and proposals received from interested firms on Tuesday,
November 29th. Staff is working to vet and shortlist the submitted proposals so
they can be presented to the commission and community for feedback in help
determining the best proposal for the site.
Given that the design and selection is not yet finalized at the application
deadline, staff is pursuing a grant in the amount of $250,000 and proposing that
the remaining cost be provided by the city as a local match. This creates a
variable match amount ranging from $23,913.00 to $218,300 depending on
which design is selected to pursue.
Application packets are due on December 19th, 2022 with an expected quick
turn around and announcement of the first-round recipients in January 2023. If
the project is not successful in the first round of funding it will be automatically
enrolled for consideration in future rounds of funding.
If the project is selected for funding in the first round it is possible that
construction could take place as quickly as the Spring/Summer of 2023.
AMOUNT REQUESTED:         $23,913 - $218,300          AMOUNT BUDGETED: $0
FUND OR ACCOUNT:          TBD
STAFF RECOMMENDATION:            Approve the resolution and authorize the Clerk to
sign.
  K. Non-Union Pay/Benefits 2023        City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the 2023 non-union
employee wage and benefit program.
CPI is 8.5% this year. A review and comparison of past increases to union and
non-union staff is noted below.
2021: union staff received from 1% - 3% increases with an average of 2.1%
      Non-union staff received 0% plus a $500 lump sum payment
2022: union staff received from 1% - 14.5% increases with an average of 4.6%
      Non-union staff received a 2% wage increase plus a 0.5% lump sum
      payment
2023: union staff will receive from 0% - 16% increases with an average of 5.6%
Between 2020 and 2023, union staff have received an average of 11.2% in wage
increases while non-union staff have received 2%.
We are seeking approval of the following:

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8% wage increase
AMOUNT REQUESTED: $3,536,331.47                 AMOUNT BUDGETED: $3,400,072.55
STAFF RECOMMENDATION:            To approve the 8% wage increase for non-union
staff effective January 1, 2023.
  L.   Virtual Public Participation Policy      City Clerk
SUMMARY OF REQUEST: To adopt a virtual public participation policy.
The Legislative Committee requested a policy be drafted allowing citizens the
ability too call in to make comment on any meeting played live on social media
or television.
For any other meetings that fall under the Open Meetings Act, citizens must
submit a request at least tow business days in advance. A zoom link will be
provided to those individuals. They will have the ability to give up to three
minutes of public comment.
STAFF RECOMMENDATION:            To adopt the Virtual Public Participation Policy as
presented.
  M. Conservation Easement Agreement at Remembrance Drive Site
     Development Services
SUMMARY OF REQUEST: Staff is requesting that Commission authorize a
conservation easement agreement between the City of Muskegon and James
Street Capital, owner of the 500,000 square foot warehousing facility that is
operated by KL Outdoors.
During the planning and construction of the large warehousing building in 2017
and 2018, MDEQ (now EGLE) cited a small piece of regulated wetland and the
build-site. The Developers at the time requested that the city consider allowing a
conservation easement on an adjacent, non-buildable city-owned parcel. This
was principally agreed upon by all parties as a logical solution, but never
completed. The agreement codifies the easement and completes the wetland
mitigation process for this development.
Attached in this item is the easement agreement signed by the current owners
of KL Outdoor, a letter from the city manager’s office allowing a mitigation study
and easement due diligence on our property, and an aerial photo illustrating
the impacted wetland (which is now built on) in red and the proposed
easement area in blue.
STAFF RECOMMENDATION:      To approve the Conservation Easement
Agreement as presented and authorize the Mayor and Clerk to sign.
  O. CRC Recommendation Regarding Attendance Policy              City Clerk
SUMMARY OF REQUEST: The CRC recommends making amendments to have a
set number of excused and unexcused absences that is the same for all boards

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within the Community Relations Committees. The number of absences would be
different depending on how often the board meets.
The CRC recommends making amendments to have a set number of excused
and unexcused absences that is the same for all boards within the Community
Relations Committees. The number of absences would be different depending
on how often the board meets.
Meetings that meet monthly:
   •   Not more than 3 Unexcused missed meeting during the year.
   •   Not more the 4Excused/Absent missed meetings during the year.
Meetings that meet quarterly:
   •   Not more than 1 Unexcused missed meeting during the year.
   •   Not more the 2 Excused/Absent missed meetings during the year.
Meetings the meet semiannually:
   •   Not more than 1 Unexcused missed meeting during the year.
   •   Not more the 1 Excused/Absent missed meeting during the year.
Meetings that meet annually
   •   No Unexcused or Excused missed meetings permitted.
Definition of Terms:
Unexcused – Does not notify Board Liaison of absence and does not attend
meeting.
Excused – Notifies Board Liaison of absence at least 72 hours in advance of
missed meeting.
Absent – Reserved for emergency situations and up to the discretion of the
Board Liaison and Community Relations Committee members.
STAFF RECOMMENDATION:       To concur with the Community Relations
Committee and adopt the revised Attendance Policy.
  P.   CRC Recommendation Regarding Reappointments to BID Board           City
       Clerk
SUMMARY OF REQUEST: To concur with Community Relations Committee on
reappointments to Business Improvement District Board.
The CRC recommends reappointing Bruce Lindstrom and Bob Tarrant – Assessed
property owners or their representatives – Terms Expiring 12/31/2025, to the
Business Improvement District.
STAFF RECOMMENDATION:           To approve the reappointments.
Motion by Commissioner Gorman, second by Commissioner Emory, to accept

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the consent agenda as presented, minus items C, G, H, and N.
ROLL VOTE: Ayes: Johnson, Hood, German, Gorman, and Emory
             Nays: None
MOTION PASSES
2022-104     REMOVED FROM CONSENT AGENDA:
  C. Good Temps Staffing Services Extension            EEO & Employee Relations
SUMMARY OF REQUEST: The City is requesting an extension for the Good Temps
Staffing Service Agreement of one year. This agreement will be from January –
December, 2023.
STAFF RECOMMENDATION:        To approve the one-year extension of the Good
Temps Staffing Service Agreement for 2023.
Motion by Commissioner Gorman, second by Commissioner Emory, to approve
the one-year extension of the Good Temps Staffing Service Agreement for 2023.
ROLL VOTE: Ayes: Johnson, Hood, German, Gorman, and Emory
             Nays: None
MOTION PASSES
  G. Hartshorn Marina 2023 Rates        Public Works
SUMMARY OF REQUEST: Staff is seeking Commission approval to set the 2023
Rates for Hartshorn Municipal Marina.
Staff is proposing to set the rates at Hartshorn Marina for the 2023 season as
follows, these rates are also currently under the review b MDNR for the 2023
season as follows, these rates are also currently under review by MDNR for their
concurrence as a Grant-In-Aid Harbor which we are obligated to operate as
through the 2024 boating season.
   •   30 FT Slip = $2,580 (2022 Rate = $2,310)
   •   40 FT Slip = $3,440 (2022 Rate = $3,080)
   •   60 FT Slip = $4,620 (2022 Rate = $4,080)
   •   Mooring Field = $583 (2022 Rate $583
   •   Transient = Range H (2022 Rate = Range G)
This is the first fee adjustment that has been proposed since the 2019 season. The
marina was closed in 2020, and the rates shown above for 2022 were also used
during the 2022 season.
It should be noted that since the loss of the T-Dock and the small boat basin
following the high-water cycles there has been limited to no availability for
transient slips. All of the 77current slips are slated for seasonal slip holders and

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roughly half of the mooring field is reserved on an annual basis.
FUND OR ACCOUNT:          594
STAFF RECOMMENDATION:         Approve the 2023 user fee rates as proposed for
Hartshorn Marina provided the proposed rates are also approved by the
Michigan Department of Natural Resources (MDNR).
Motion by Commissioner Emory, second by Vice Mayor German, to approve the
2023 user fee rates as proposed for Hartshorn Marina provided the proposed
rates are also approved by the Michigan Department of Natural Resources
(MDNR).
ROLL VOTE: Ayes: Hood, German, Gorman, Emory, and Johnson
             Nays: None
MOTION PASSES
  H. Sanitation Contract Extension Public Works
SUMMARY OF REQUEST: Staff is seeking Commission approval to adopt a
proposed 5.5. Yearn Extension of Sanitation Services with Republic Services, Inc.
to provide Solid Waste, Recycling, and Yard Waste Services for city residents.
The proposal from Republic Services proposed to largely extend the existing
services in place. The major changes are as follows:
   •   5.5 Year Extension (January 1, 2023 – June 30, 2028). Similar to previous
       extension terms but modified to align with the city fiscal year with a 4%
       rate increase on January 1, annually each year starting in 2024.
   •   Solid Waste cost per unit (residence) in 2023 at $12.26/unit (2022 Rate is
       $11.62/Unit)
   •   Recycling cost per unit in 2023 is $4.78/Unit (2022 Rate is $4.50/Unit)
   •   Solid Waste Cost is $100/Load (2022 Rate is $10.50/Ton or roughly
       $125/Load)
   •   Offers a soft reopener clause for changes in material elements of work
       greater than 15% year over year.
   •   Provides complimentary service to several city utilized dumpsters around
       town that support Park and event operations.
   •   Provides that by 2027 Republic Services will implement a tracking
       mechanism to record which properties are collected and which are not
       on a daily basis and report that out in electronic format to the City. This
       information can be the basis of considering an alternative funding
       mechanism in future extensions if there is a desire to switch to a pay per
       use model rather than a pay per unit model, or to explore options that
       further incentivize recycling similar to how Grand Rapids handles their solid

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       waste programming.
   •   No change to the bulk item (pink sticker) program, or the Neighborhood
       Dumpster Day program. Those remain in place at the costs established in
       previous contracts.
The current contract is set to expire at the end of the calendar year. Staff is very
satisfied with the service that Republic provides in terms of the level of support
and cooperation that is involved, as well as the price per unit to deliver this
service to the city.
The first full year of the program is expected to cost approximately $2.2 million.
The 22/23 budget includes $2.107 million for Republic Services. Being that on ½
of the fiscal year will fall under this new contract we expect that the 22/23
budgeted amount will very nearly cover the cost of this increase.
Revenue to support these costs are derived from the 3 mill sanitation fee levied
on all properties in the city, in addition to the Sanitation Fee charged on all
water bills, and any user fees collected for bulk item stickers, etc. These revenue
sources should continue to fully support the expenses of this contract with the
potential need for minor annual adjustments depending on the growth of the
levied millage.
AMOUNT REQUESTED:                            AMOUNT BUDGETED:
No Change to Budgeted Amount (22/23)         $2.075M (22/23)
$2.20 Million (23/24)                        TBD (23/24, and beyond)
$2.29 Million (24/25)
$2.38 Million (25/26)
$2.47 Million (26/27)
$2.57 Million (27/28)
FUND OR ACCOUNT:          101-521 (Sanitation)
STAFF RECOMMENDATION:           To approve the 5.5 year contract extension for
sanitation with Republic Services, Inc.
Motion by Commissioner Gorman, second by Commissioner Hood, to approve
the 5.5 year contract extension for sanitation with Republic Services, Inc.
ROLL VOTE: Ayes: German, Gorman, Emory, Johnson, and Hood
             Nays: None
MOTION PASSES
  N. 2023 FOP Contract          City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the proposed collective
bargaining agreement with the Fraternal Order of Police Labor Council.

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City staff and Fraternal Order of Police Labor Council representatives have
agreed upon new contract items that would take effect January 1, 2023. A
summary of the tentative agreements and wage scale is attached, and the FOP
has ratified the contract. The new wage scale provides better distribution
among classifications in patrol and command over time. There is an impact to
the budget with the revised wages. The formal agreement is being prepared by
counsel. The new agreement is beneficial to both parties. Staff is prepared to
begin implementing the provision of the contract on January 1, 2023.
AMOUNT REQUESTED: $97,341.55 increase       AMOUNT BUDGETED: $9,100,000
FUND OR ACCOUNT: 40301
STAFF RECOMMENDATION:            To approve the collective bargaining agreement
with the Fraternal Order of Police Labor Council as presented.
Motion by Commissioner Gorman, second by Commissioner Emory, to approve
the collective bargaining agreement with the Fraternal Order of Police Labor
Council as presented, which may be corrected for technical and grammatical
reasons.
ROLL VOTE: Ayes: German, Gorman, Emory, Johnson, and Hood
            Nays: None
MOTION PASSES
2022-105    NEW BUSINESS:
  A. Housing Board of Appeals Demolition – 808 Oak Avenue         Public Safety
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within 30 days. It is
further requested that administration be directed to obtain bids for the
demolition of the structures and that the Mayor and City Clerk be authorized
and directed to execute a contract for demolition with the lowest responsible
bidder or staff may issue infraction tickets to the owner, agent or responsible
party if they do not demolish the structure.
The Housing Board of Appeals has deemed 808 Oak Avenue to be in property
maintenance violation since 2016. Property has been a long-standing area of
blight and public nuisance/hazard. Property includes a house, multiple
outbuildings, two garages, and two large pole barns. House is gutted down to
the studs, has multiple holes in the roof, and is unsecured. Garages, outbuildings,
and pole barns are severely dilapidated. Staff has not been inside buildings so
the extent of the dilapidation is unknown. Owner has expressed desire to sell
property but has not provided any plan to bring the property or buildings into
compliance. No permits have been applied for. HBA declared the house in
September 2022. Owner has not been to any HBA meetings.

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STAFF RECOMMENDATION:         To concur with the Housing Board of Appeals
decision to demolish and authorize administration to obtain bids for the
demolition and that the Mayor and Clerk be authorized and directed to
execute a contract for demolition with the lowest responsible bidder.
Motion by Commissioner Hood, second by Vice Mayor German, to refer this item
back to the Housing Board of Appeals.
ROLL VOTE: Ayes: Gorman, Emory, Johnson, Hood, and German
            Nays: None
MOTION PASSES
  B.   Adelaide Pointe Reimbursement Agreement            City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the development
reimbursement agreement for Adelaide Pointe.
The development reimbursement agreement is the next step in the process of
finalizing the city’s partnership with the developer through the Brownfield
Redevelopment Authority. This agreement provides the outline for how the
partners will cooperate on funding the improvements to the site. The city will sell
bonds for agreed upon expenses and be reimbursed through tax capture. The
developer will also incur brownfield eligible expenses which will be repaid
through tax capture. Individual addenda will be prepared, throughout the term
of the development project, to reflect project phases. Each addendum will be
presented to the BRA and the Commission for consideration and approval.
Staff hosted a public forum on October 3, 2022 to gather public input and
answer questions about the development. The Brownfield Redevelopment
Authority considered the agreement at their December 13, 2022 meeting.
STAFF RECOMMENDATION:       To approve the development and
reimbursement agreement for Adelaide Pointe.
Motion by Commissioner Gorman, second by Commissioner Hood, to approve
the development and reimbursement agreement for Adelaide Pointe.
ROLL VOTE: Ayes: Gorman, Emory, Johnson, Hood, and German
            Nays: None
MOTION PASSES

ANY OTHER BUSINESS:     Vice Mayor German asked if there was an update on
the Mart Dock property lawsuit in Circuit Court - no update at this time.

Chief Kozal provided information about parking at Grand Trunk. The ordinances
that govern launch ramp parking 58-3 and 97-74.92-71 LO15 says that passes are



                                          Page 12 of 13
required. Recommends making it so that the ordinances so that they are easier
to read for our boat launch/marina. There is no enforcement at this time.

PUBLIC COMMENT ON NON-AGENDA ITEMS: Public comments were received.
ADJOURNMENT: The City Commission meeting adjourned at 6:45 p.m.


                                    Respectfully Submitted,




                                    Ann Marie Meisch, MMC – City Clerk




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