City Commission Minutes 08-07-2023

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                                 City of Muskegon
                             City Commission Meeting
                                      Minutes


                              August 7, 2023, 5:30 pm
                                Muskegon City Hall
                      933 Terrace Street, Muskegon, MI 49440

Present:              Mayor Ken Johnson
                      Commissioner Rachel Gorman
                      Commissioner Rebecca St.Clair
                      Commissioner Eric Hood (arrived at 6:50 p.m.)
                      Vice Mayor Willie German, Jr.
                      Commissioner Michael Ramsey
                      Commissioner Teresa Emory

Staff Present:        City Manager Jonathan Seyferth
                      City Clerk Ann Meisch
                      City Attorney John Schrier
                      Deputy City Clerk Kimberly Young



1.    Call To Order
      Mayor Ken Johnson called the Muskegon City Worksession/General Session
      meeting to order at 5:30 p.m.
2.    Prayer
      In lieu of an opening prayer, a moment of silence was observed.
3.    Pledge of Allegiance
      The Pledge of Allegiance to the Flag was recited by the Commission and the
      public.
4.    Roll Call
      As recorded above
5.    Honors, Awards, and Presentations
      5.a    Introduction of Staff

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      City Clerk Ann Meisch introduced the new Elections Coordinator Shelly
      Stibitz. The City Clerk's Office is excited to have Shelly join our team as
      we enter into a presidential election year with several constitutional
      changes regarding elections.
5.b   HOME ARP Plan - Community and Neighborhood Services
      Community and Neighborhood Services Director, Sharonda Carson,
      presented information regarding the HOME ARP Plan. The HOME ARP
      Plan is on the agenda for approval at tonight's meeting.
5.c   Parks & Recreation Master Planning Update - Public Works
      Parks and Recreation Director, Kyle Karczewski, presented information
      regarding the Parks and Rec Master Plan Update. There will be
      opportunities for public input in multiple formats. The Parks & Recreation
      Department is seeking feedback from residents about what they would like
      to see in the city's parks. They will focus on areas that had low response
      rates in the 2020 survey. Aside from digital marketing, the Parks & Rec
      department will also be engaging the community in person and at a variety
      of events throughout the city over the next several weeks. The
      Department is also planning several pop-up parties at parks throughout
      the city in order to provide an opportunity to allow residents to provide
      feedback, make requests, and offer suggestions.
5.d   Lakeside Business Improvement District Special Assessment -
      Economic Development
      The Lakeside Business Improvement District is requesting a special
      assessment for three more years starting in January of 2024.
      Dave Alexander, Community Engagement Specialist, presented on the
      Lakeside Business Improvement District Special Assessment. The
      Lakeside Business Improvement District is requesting a special
      assessment for three more years starting in January of 2024.
      Funds from the Lakeside BID assessment in 2021-2023 has allowed for
      the BID to cover items that keep the integrity of the business district.
      Funds have been used to cover snow removal, Christmas decorations,
      landscaping and maintenance, Lakeside events, and advertisements in
      the Visitor's Guide.
      In order to continue these services, the Lakeside BID has requested a
      final three-year assessment at a 20% reduction of 2024-2026, continuing
      with the current district boundaries. Class A properties will have a per

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           parcel rate of $0.04 per square foot of lot size for a Commercial Property,
           not to exceed $1,600, and $0.02 per square foot of lot size for an
           Industrial, Automotive or Utility Property, not to exceed $1,600. The
           special assessments will be in winter tax bills. After the additional three
           years is complete, the BID will transition into the CIA.
           City staff has provided a Special Assessment Packet that outlines the
           overview of the request, a letter from the City of Muskegon Assessor, the
           budget recommendation and explanation, and the properties included in
           the assessment. City staff will introduce the request at the Work Session
           on August 7th, 2023 and bring it to the City Commission meeting on
           August 22nd, 2023.
6.   Public Comment on Agenda Items
     Public comments were received.
7.   Consent Agenda
     Action No. 2023-86
     Motion by: Commissioner Ramsey
     Second by: Commissioner St.Clair
     To accept the consent agenda as presented, minus item E - item B has been
     removed for consideration at a later date.
     Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner St.Clair, Vice
     Mayor German, Commissioner Ramsey, and Commissioner Emory
     Absent (1): Commissioner Hood
                                                           MOTION PASSES (6 to 0)


     7.a   Approval of Minutes - City Clerk
           To approve the minutes of the June 29, 2023 Goal Setting Meeting and
           the July 25, 2023 Regular Meeting.
           STAFF RECOMMENDATION: To approve the minutes.
     7.b   Updated Property Maintenance Code - Public Safety - REMOVED PER
           STAFF REQUEST
     7.c   Fire Station #5 Roofing Project - Public Safety




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      Bid tabulations were requested and accepted from Garland. Ostrander
      Roofing was the lowest for a project pricing of $47,000.00. Other bids
      were from Excel Roofing with project pricing of $49,000.00 and Hoekstra
      Roofing with project pricing of $60,000.00.
      Garland budgets for the materials and estimated freight fees for a total of
      $29,983.00 There is also estimated costs for structural evaluation at
      $3500.00.
      The project total is $80,483.00.
      STAFF RECOMMENDATION: To approve the budget requested for the
      Marquette Fire Station roofing project and award the project to Ostrander
      Roofing.
7.d   HOME ARP Plan - Community & Neighborhood Services
      Staff has consulted with many agencies, utilized data from Point in Time
      (PIT) Count, data from the housing assessment ad feedback from the
      community to determine the best use of these HOME ARP funding.
      Top Priorities: quality affordable housing, move- in expenses, case
      management and emergency shelter.
      Four Qualifying Populations:
         1. Homeless as defined in 24 CFR 91.5;
         2. At risk of Homelessness as defined in 24 CFR 91.5;
         3. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence,
            Sexual Assault, Stalking, or Human Trafficking (referred to herein
            as domestic violence/sexual assault/trafficking); and
         4. Other populations who do not qualify under any of the populations
            above but meet one of the following criteria:

         •   Other Families Requiring Services or Housing Assistance to
             Prevent Homelessness

         •   Those at Greatest Risk of Housing Instability
      To conclude, staff is recommending the use of funding for housing
      initiatives within the city limits, funding set aside to assist agencies with
      supportive services for those considered as the qualifying population and
      funding to establish a Community Housing Development Organization
      (CHDO).


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      AMOUNT REQUESTED: $1,200,000
      FUND OR ACCOUNT: HOME
      STAFF RECOMMENDATION: To approve HOME ARP plan.
7.f   West Urban PILOT Agreement 3rd Amendment - Development
      Services
      Staff is requesting to amend the existing infill PILOT agreement between
      the City and West Urban Properties by removing some lots and adding
      others.
      The City has previously entered into an agreement with West Urban
      Properties to construct 100 homes for rental and potential owner-occupied
      stock in our residential neighborhoods. Staff has been working to refine
      the selected lots as stated in commission meetings for previous
      amendments.
      This item proposes to remove 2358 Dowd, 621 Jackson, 608 Jackson,
      601 Jackson, 579 Jackson, 558 Jackson, and 553 Jackson from the
      approved PILOT Agreement, and add 1974 Dowd, 1100 Washington, 432
      Monroe, 1315 Ducey, 1325 Wesley, 1085 Marquette, 1355 Adams, 1366
      Leonard, 912 Hackley, 1056 Windsor, 2347 Hudson, 828 W. Southern,
      900 W. Grand, 462 Washington, 1456 Park, 1514 Park, and 314 Grand.
      Staff may return with additional lots to add and/or remove to this
      agreement exhibit as we clear title and assess buildability through phases.
      STAFF RECOMMENDATION: To approve the 3RD Amendment to the
      West Urban PILOT Agreement as presented, and to authorize the Mayor
      and Clerk to sign.
7.g   Termination of Downtown Muskegon Development Center (DMDC)
      Parking Easement Agreements at 387 and 401 Morris - Manager's
      Office
      Easements were discovered as part of the closing process with the DMDC
      to sell Units 1 and 2, otherwise known as the Morris Avenue Parking Lot,
      to the City. The City and DMDC have since agreed that the Easements
      are no longer needed and are therefore terminated, abandoned, and of no
      further force or effect.
      On June 13, the commission authorized the purchase of DMDC-owned
      parking lots at 387 and 401 Morris Avenue to the City. These are lots



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      behind the Chamber of Commerce and Russell Block/Century Club
      buildings.
      The Closing on Units 1 & 2 occurred on July 19th. There are two
      exceptions on the title commitment for the parking lot that have to do with
      two Easements granted by the City for the benefit of the old Muskegon
      Mall property. The City entered into two Parking and Access Easement
      Agreements with Muskegon Properties Company, Inc., dated March 26,
      1991. The City and DMDC have since agreed that the Easements are no
      longer needed and are therefore terminated, abandoned, and of no further
      force or effect. Legal counsel has prepared a Mutual Termination of
      Easements that was reviewed and approved by the title company as part
      of the property closing.
      STAFF RECOMMENDATION: To approve terminating two existing
      Parking and Access Easement Agreements for Units 1 and 2 as part of
      the property closing at 387 and 401 Morris St.
7.h   Amendment to the Zoning Ordinance - Fencing - Planning
      This is a staff-initiated request to amend the fencing ordinance to clarify
      the types of fences allowed. This is an effort to improve the quality of
      fences erected throughout the City. The Planning Commission
      unanimously recommended approval of the amendment.
      STAFF RECOMMENDATION: To approve the request to amend the
      fencing ordinance as proposed.
      SECOND READING REQUIRED
7.i   Amendment to the Zoning Ordinance - Residential Design Criteria -
      Planning
      To approve the request to amend the fencing ordinance as proposed.
      Many of the changes are small and for clarification reasons. Some
      requirements were removed because they are requirements already listed
      in the building codes. The removal of storage requirements and house
      widths on small lots are the biggest proposed changes.
      The Planning Commission unanimously recommended approval of the
      amendment.
      STAFF RECOMMENDATION: To approve the request to amend the
      residential design criteria ordinance as proposed.
      SECOND READING REQUIRED

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7.j   Sale of 180 Houston Avenue - Manager's Office
      Staff is seeking approval of the sale of 180 Houston Avenue.
      In late 2020, the commission approved an agreement with Community
      EnCompass to construct affordable homes. The goals of the agreement
      were to further our economic equity efforts and create diversity of housing
      price points as we build housing infill. The agreement has been amended
      over time, and the project is now part of our ARPA infill housing initiative
      and our scattered site brownfield. We have received a purchase
      agreement on the first home located at 180 Houston Avenue. The offer is
      for $150,000, a full price offer, with no seller concessions.
      STAFF RECOMMENDATION: To approve the purchase agreement for
      180 Houston Avenue.
7.e   Legal Representation for Tax Appeals for Property Tax Classification
      for Marihuana Operations - Finance
      The City of Muskegon is seeking to reach an agreement with Hallahan &
      Associates, P.C. for Marihuana tax appeals at the State Tax Commission
      and Michigan Tax Tribunal.
      Parmenter Law which normally represents the City of Muskegon,
      recommends that we use this law firm because of their expertise in these
      types of tax appeals. This Law Firm has been hired by other
      municipalities across the State to represent them for this unique property
      tax classification appeal. We thought it would be in our best interest to
      use this law firm because they are familiar with tax appeals from the
      Marihuana businesses.
      Fees for service will be calculated at hourly rate of $215 for attorneys and
      an hourly rate of $100 for law clerks and assistants.
      FUND OR ACCOUNT: 101 Legal Fees
      STAFF RECOMMENDATION: To authorize the Finance Director to enter
      into an agreement with Hallahan & Associates, P.C. for Marihuana tax
      appeals.
      Action No. 2023-87(e)
      Motion by: Commissioner Ramsey
      Second by: Commissioner St.Clair




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             To authorize the Finance Director to enter into an agreement with
             Hallahan & Associates, P.C. for Marihuana tax appeals, not to exceed
             $10,000.
             Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
             St.Clair, Vice Mayor German, Commissioner Ramsey, and Commissioner
             Emory
             ABSTAINED: (1): Commissioner Hood
                                                             MOTION PASSES (6 to 0)


8.    Public Hearings
9.    Unfinished Business
10.   New Business
      10.a   Designation of Voting Delegates for the Michigan Municipal League
             Annual Meeting - City Clerk
             To designate, by action of the Commission, one of our officials who will be
             in attendance at the Convention as an official representative to cast the
             vote of the municipality at the Annual Meeting; and, if possible, to
             designate one other official to serve as an alternate.
             STAFF RECOMMENDATION: To appoint an official representative and
             alternate representative to be in attendance and to cast the vote of the
             municipality at the Annual Business Meeting of the Michigan Municipal
             League Convention.
             Action No. 2023-88(a)
             Motion by: Commissioner Ramsey
             Second by: Vice Mayor German
             To appoint Mayor Ken Johnson as an official representative and City Clerk
             Ann Meisch as alternate representative to be in attendance and to cast the
             vote of the municipality at the Annual Business Meeting of the Michigan
             Municipal League Convention.
             Ayes: (7): Mayor Johnson, Commissioner Gorman, Commissioner
             St.Clair, Commissioner Hood, Vice Mayor German, Commissioner
             Ramsey, and Commissioner Emory




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                                                      MOTION PASSES (7 to 0)


10.b City ARPA Community Grant Proposals - Manager's Office
     To review and consider eligible grant proposals, as presented by the
     ARPA Community Grant Review Committee.
     STAFF RECOMMENDATION: To approve the list of eligible grant
     proposals for funding as provided by the City ARPA Community Grant
     program.
     1. I move to withdraw the grant proposal received from Pioneer Resources
     from consideration as part of the slate of recommended projects
     presented to the City Commission, under the City ARPA Community Grant
     Program.
     2. I move to approve the list of eligible grant proposals for funding, under
     the City ARPA Community Grant Program, as presented to the City
     Commission, excluding the application from Pioneer Resources.
     3. I move to approve the City ARPA Community Grant program application
     proposal from Pioneer Resources, pursuant to the completion of required
     conflict of interest.




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RATED PROJECT           (45)      Requested       Recommended     Funded
PROPOSALS               Total
                        Pts

Organization            Average   $2,825,000.00   $1,600,000.00

AgeWell Services*       42.3      $25,000.00      $25,000.00      100.00%

Every Woman's           41.5      $120,000.00     $120,000.00     100.00%
Place*

MI Crossroads           40.2      $25,000.00      $25,000.00      100.00%
Council, BSA

Samaritas               39.8      $250,000.00     $100,000.00     40.00%

NA McLaughlin           39.7      $250,000.00     $100,000.00     40.00%

NA Nelson               38.7      $168,000.00     $100,000.00     59.52%
Neighborhood
Improvement
Association*

West Michigan           38        $50,000.00      $50,000.00      100.00%
Concert WINDS

Pioneer Resources,      37.3      $200,000.00     $150,000.00     75.00%
Inc.*

Volunteer for Dental*   37.2      $50,000.00      $50,000.00      100.00%

Muskegon Christian      37.2      $175,000.00     $175,000.00     100.00%
School

West Michigan           37        $200,000.00     $100,000.00     50.00%
Symphony

Unity Beauty Salon &    36.3      $50,000.00      $50,000.00      100.00%
Spa LLC*

Tiki Boiz LLC           36        $50,000.00      $50,000.00      100.00%



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Rake Beer Project            35           $25,000.00         $25,000.00         100.00%
LLC

Kids Food Basket*            34.8         $250,000.00        $100,000.00        40.00%

Mount Zion Church of         34.5         $37,000.00         $37,000.00         100.00%
God in Christ

Boys and Girls Club*         34.3         $250,000.00        $50,000.00         20.00%

Open Gates of Grace          33.3         $250,000.00        $100,000.00        40.00%
Ministries*

Soul Filled                  33.2         $100,000.00        $100,000.00        100.00%
Enterprises*

Servicios De                 33           $25,000.00         $25,000.00         100.00%
Esperanza LLC*

NA Sheldon Park              30           $25,000.00         $8,000.00          32.00%
Neighborhood
Improvement
Association

NA Jackson Hill*             27.3         $250,000.00        $60,000.00         24.00%


               AMOUNT REQUESTED: $1,600,000
               FUND OR ACCOUNT: 482-901-982-
               Action No. 2023-88(b)
               Motion by: Commissioner Ramsey
               Second by: Commissioner St.Clair
               To approve the list of eligible grant proposals for funding, under the City
               ARPA Community Grant Program, as presented to the City Commission,
               excluding the application from Pioneer Resources.




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            Ayes: (6): Mayor Johnson, Commissioner Gorman, Commissioner
            St.Clair, Commissioner Hood, Commissioner Ramsey, and Commissioner
            Emory
            Nays: (1): Vice Mayor German
                                                           MOTION PASSES (6 to 1)


11.   Any Other Business
12.   Public Comment on Non-Agenda items
      Public comments were received.
13.   Closed Session
14.   Adjournment
      The City Commission meeting adjourned at 7:35 P.M.
      Motion by: Commissioner Ramsey
      Second by: Commissioner Hood
                                                                 MOTION PASSES




                                                    _________________________
                                                             Respectfully Submitted,
                                               Ann Marie Meisch, MMC - City Clerk




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