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CITY OF MUSKEGON
CITY COMMISSION MEETING
May 28, 2024 @ 5:30 PM
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
CALL TO ORDER
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, May 28, 2024.
Pastor Jeremy Lenertz from the First Wesleyan Church, opened the meeting with
prayer, after which the Commission and public recited the Pledge of Allegiance
to the Flag.
ROLL CALL
Present: Mayor Ken Johnson, Vice Mayor Rebecca St.Clair (left at 7:20 p.m.),
Commissioners Rachel Gorman, Jay Kilgo, Willie German, Jr., and Katrina Kochin
(arrived at 5:40 p.m.), City Manager Jonathan Seyferth, City Attorney John
Schrier, and City Clerk Ann Marie Meisch
Absent: Commissioner Destinee Keener
2024-48 HONORS, AWARDS, AND PRESENTATIONS
A. Resolution for Dave Alexander Community Engagement
Dave Alexander is retiring after five years of service to the City of Muskegon
Government, and decades of service to our community. Mayor Johnson read
the resolution and presented it to Dave and thanked him for his service. Dave
introduced his wife, Peggy, and thanked the City and staff.
B. FY 2024-25 Budget Presentation Manager's Office
The Finance Department and City Manager's Office will give a budget
presentation on the FY 2024-25 budget. City Manager, Jonathan Seyferth, gave
the presentation and answered questions.
C. DWSRF Project Plan Amendment Public Works
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The City’s DWSRF Project Plan on file with the state for future revolving fund
projects has been updated, and the City needs to receive comment and
adopt the plan by resolution. Dan VanderHeide, Director of Public Works,
introduced Barbara Marzak and Matt Holst from Prein & Newhof who gave a
presentation and asked for public comment. No public comments were made.
PUBLIC COMMENT ON AGENDA ITEMS
Public comments received.
2024-49 CONSENT AGENDA
A. Approval of Minutes City Clerk
To approve minutes of the May 13, 2024, Commission Worksession Meeting and
the May 14, 2024, Regular Commission Meeting.
STAFF RECOMMENDATION: To approve the minutes.
B. DWSRF Project Plan Amendment Public Works
The City’s DWSRF Project Plan on file with the state for future revolving fund
projects has been updated, and the City needs to receive comment and
adopt the plan by resolution. The City has taken advantage of favorable rates
and even some principal forgiveness as a part of the state’s Revolving Loan
Fund programs to complete substantial utility improvement projects, such as the
Wilcox/Thompson and Morton projects currently underway. In order to be
eligible for these programs, projects must be included in the City’s “Project Plan”
that is on file with the state department of EGLE. The specific projects proposed
for the program are not known at this time; this Project Plan is simply a list of
projects the City may propose for the program in the future. The list is used by
the state to perform preliminary environmental and other clearance work so
they are prepared for the projects if and when the City proposes them.
Prein & Newhof has updated our Drinking Water State Revolving Fund (DWSRF)
Project Plan (the plan dedicated to drinking water projects) to show potential
projects over the next several years. Part of the updating process includes
holding a meeting where the public can comment on the plan (satisfied by
today’s meeting and the public comment periods within it), and a resolution by
the Commission adopting the plan.
STAFF RECOMMENDATION: Move to adopt the City’s 2025 DWSRF Project Plan by
the resolution.
C. Sale of 509 Adams. Planning
Staff is seeking authorization to sell the City-owned vacant lot at 509 Adams to
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A&PL Homes. A&PL Homes LLC would like to purchase the City-owned
buildable lot at 509 Adams for $3,000 (75% of the True Cash Value of $4,000) plus
half of the closing costs and the fee to register the deed. The lot will be split into
two parcels and they will be constructing a single-family home on each lot.
STAFF RECOMMENDATION: To authorize the Code Coordinator to complete the
sale of 509 Adams, as described in the purchase agreement, and to have the
Mayor and Clerk sign both the purchase agreement and the deed.
E. Sale of 186 Myrtle Planning
Staff is seeking authorization to sell the City-owned vacant lot at 186 Myrtle to
Across the Board, LLC. Across the Board LLC would like to purchase the City-
owned buildable lot at 186 Myrtle for $3,750 (75% of the True Cash Value of
$5,000) plus half of the closing costs and the fee to register the deed. The parcel
will be split into five lots after the sale. They will be constructing a single-family
home on each of the properties.
STAFF RECOMMENDATION: To authorize the Code Coordinator to complete the
sale of 186 Myrtle, as described in the purchase agreement, and to have the
Mayor and Clerk sign both the purchase agreement and the deed.
G. Annual Action Plan Budget 2024 Community & Neighborhood Services
Removed prior to meeting.
H. EGLE Water Affordability & Planning Grant Agreement Public Works
Staff seeks approval to enter into an agreement with the State of Michigan's
Department of Environment, Great Lakes and Energy (EGLE) for a Water
Affordability & Planning Grant in the amount of $122,500 with a value of $23,320
as in-kind City matching efforts. Water affordability has become a growing
topic of concern throughout the State of Michigan and the Unites States.
Muskegon's water system is facing a growing need for rehabilitation and
replacement of its aging infrastructure. This has led to and will continue to lead
to increasing rates to support improvements. Increasing costs are contributing to
delinquencies in water system bills and the financial burden on low-income
residents.
The City of Muskegon, with the assistance of Prein & Newhof, applied for and
was selected to receive an Affordability and Planning Grant to assist with the
development of an affordability program for its Drinking Water System. The grant
includes an award of $122,500, with an in-kind match of $23,320 based on staff
time and legal counsel review costs from existing budgeted funds. Using the
grant funds, the City intends review the types of programs that have been
successful in other communities and identify what may work for the City of
Muskegon. The City intends to develop a program that is sustainable and can
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be supported by the City Commission and the public.
STAFF RECOMMENDATION: To authorize staff to enter into an agreement with the
State of Michigan's Department of Environment, Great Lakes and Energy (EGLE)
for a Water Affordability & Planning Grant in the amount of $122,500 with a
value of $23,320 as in-kind City matching efforts.
I. Water Affordability Study Consultant Public Works
Staff seeks approval to enter into a contract with Prein & Newhof for $122,500 to
assist the City with preparation of a Water Affordability Study using EGLE Water
Affordability & Planning Grant funds. Prein & Newhof helped the City prepare
an EGLE Water Affordability & Planning Grant, and has successfully completed
a Water Affordability Study using the same grant for the City of Kalamazoo. As
such, staff solicited the proposal from Prein & Newhof to prepare a Water
Affordability Study for Muskegon using the recently awarded grant. Their
proposal matches the grant amount, with city staff time being tracked and
reported to EGLE as in-kind match. Based on their experience with this type of
work, and their familiarity with the City's grant and the specifics of this grant
process, staff recommends approval.
STAFF RECOMMENDATION: To approve staff to enter into a contract with Prein &
Newhof for $122,500 to assist the City with preparation of a Water Affordability
Study using EGLE Water Affordability & Planning Grant funds.
K. Amendment to Fee Structure for Social District Strickers Community
Engagement
On May 14, 2024, the DDA approved allocating $50,000 annually to fund the
cleanup of downtown Muskegon. With the DDA covering the costs of
downtown cleanup, Social District Businesses and staff request to change the
fee of Social District stickers from $0.75 each to sell them at cost.
Since 2021, the revenue from Social District cups and sticker sales from
downtown businesses has covered the cost of seasonal workers to clean up
downtown. On May 14, 2024, the DDA approved allocating $50,000 annually to
fund the cleanup of downtown Muskegon. This allocation will cover the
expected amount of staff time for the coming years. With the DDA covering the
costs of downtown cleanup, social district businesses and staff request to
change the fee of Social District stickers from $0.75 each to sell them at cost.
This change is timely as many businesses will need to purchase more stickers for
upcoming events such as the Pub Pedal on June 1, 2024.
STAFF RECOMMENDATION: To approve the update of the social district fee
schedule.
Motion by Commissioner Kilgo, second by Commissioner German, to approve
the Consent Agenda as presented minus items D, F, J, L, M and N.
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ROLL VOTE: Ayes: German, Gorman, Kochin, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
2024-50 ITEMS REMOVED FROM THE CONSENT AGENDA
D. City-Owned Billboard Lease Renewal Planning
Renewal of 15-year leases with The Lamar Companies for two billboards owned
by the City of Muskegon located along Business Route 31. The existing leases for
the City-owned billboards located on Business Route 31 at Getty Street and
along Business Route 31 near the end of Beidler Street have recently expired.
Renewed 15-year leases with The Lamar Companies for these two locations
have been updated to reflect revised payment schedules that incorporate
pricing for potential future upgrades to digital displays. The proposed payment
schedules are as follows:
Getty Static Base Payment Schedule:
Years 1-5 = $4200.00 per year
Years 6-10 = $6800.00 per year
Years 11-15 = $7800.00 per year
Getty Digital Payment Schedule:
Years 1-5 = $7000.00 per year
Years 6-10 = $8500.00 per year
Years 11-15 = $10000.00 per year
Beidler Static Base Payment Schedule:
Years 1-5 = $4000.00 per year
Years 6-10 = $6500.00 per year
Years 11-15 = $7500.00 per year
Beidler Digital Payment Schedule:
Years 1-5 = $7000.00 per year
Years 6-10 = $8500.00 per year
Years 11-15 = $10000.00 per year
STAFF RECOMMENDATION: To approve renewal of the updated 15-year lease
agreements with The Lamar Companies for two City-owned billboard locations.
Motion by Commissioner Kochin, second by Commissioner German, to approve
the renewal of the updated 15-year lease agreements with The Lamar
Companies for two City-owned billboard locations.
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ROLL VOTE: Ayes: Kilgo, German, Gorman, Kochin, St.Clair, and Johnson
Nays: None
MOTION PASSES
F. Sale of 553,558,579,601,608,621 Jackson, 505 Alva and 532 Leonard.
Planning
Staff is seeking authorization to sell the City-owned vacant lots at 553, 558, 579,
601, 608, 621 Jackson, 505 Alva and 532 Leonard to Green Rabbit Home
Builders. Green Rabbit Home Builders would like to purchase the City-owned
buildable lots at 553,558,579,601,608,621 Jackson, 532 Leonard and 505 Alva for
$25,125 (75% of the True Cash Value of $37,500) plus half of the closing costs
and the fee to register the deed. They will be constructing single-family homes
on the property.
STAFF RECOMMENDATION: To authorize the Code Coordinator to complete the
sale of 553, 558, 579, 601, 608, & 621 Jackson, 532 Leonard and 505 Alva, as
described in the purchase agreement, and to have the Mayor and Clerk sign
both the purchase agreement and the deed.
Motion by Commissioner kilgo, second by Vice Mayor St.Clair, to authorize the
Code Coordinator to complete the sale of 553, 558, 579, 601, 608, & 621
Jackson, 532 Leonard and 505 Alva, as described in the purchase agreement,
and to have the Mayor and Clerk sign both the purchase agreement and the
deed.
ROLL VOTE: Ayes: Johnson, Kilgo, German, and Gorman
Nays: Kochin
MOTION PASSES
J. Downtown Social District Expansion Community Engagement
Pigeon Hill Brewing Company, LLC (895 4th St), Shoreline Inn, LLC (750 Terrace
Point Rd), and Waterworks GR, LLC d/b/a Lake House Waterfront Grille have
formally requested to expand the social district to include their three
establishments.
Summer 2020 | The City of Muskegon administration began designing a
downtown Muskegon Social District in direct response to the COVID-19
Pandemic. The design included policies, parameters, and management of this
new community development tool. The Muskegon Social District Plan was
shared with potential license-holder users for refinement of the plan. The final
plan was presented and approved by the Muskegon City Commission on
August 25, 2020, and the Michigan Liquor Control Commission on September 15,
2020.
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September 2020 | The original Downtown Social District began operations the
third weekend in September 2020. The Muskegon Social District included a
common area south of Shoreline Drive with the potential of expanding to the
north in the future. The initial Muskegon Social District was mainly along West
Western Avenue from Eighth Street to Pine Street, including portions of Clay
Avenue, Morris Avenue, Third Street and Jefferson Street.
April 2021 | The plan was amended to remove the property at 490 W. Western
Avenue, owned by Port City CIO Building Association, which requested removal
because special non-profit licenses could not be issued inside of a social district
in the initial law.
May 2021 | City Commission and Michigan Liquor Control Commission
approved the second Social District in the City which serves the establishments
in the Lakeside Business District. The Lakeside Social District Plan was shared with
Lakeside businesses and residents. The Muskegon Lakeside Social District has
common area along Lakeshore Drive from Addison Street to Moon Street. The
Muskegon Lakeside Social District includes properties on the southside of
Lakeshore Drive from Addison to Moon and on the northside of Lakeshore Drive
from Moon up to but not including the Lakeside Emporium. In the future, the
district may be extended west of Moon Street along Lakeshore Drive to
accommodate future growth and development.
April 2022 | The plan was amended on April 26, 2022, to add Hackley Park,
areas along Clay Avenue from Second to Fourth Streets, and the property at
490 W. Western Ave., owned by Port City CIO Building Association.
STAFF RECOMMENDATION: To approve the amended Downtown Muskegon
Social District plan and map.
Motion by Commissioner Kilgo, second by Commissioner Kochin, to approve
the amended Downtown Muskegon Social District plan and map.
ROLL VOTE: Ayes: None
Nays: Johnson, Kilgo, German, Gorman, and Kochin
MOTION FAILS
L. Toro Mower Purchase DPW- Parks
The Parks Department requests authorization to purchase a Toro 4000D from
Spartan Distributors for $73,582.01. Staff is seeking authorization for a capital
purchase of $73,582.01 for the purchase of a Toro 4000D. This would be a much
needed upgrade to the parks department as we maintain over 800 acres of
public land and it does the work of multiple mowers. This mower has an 11"
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cutting width and mows at 7.9 acres per hour. Our standard mower, the Toro
3280-D, has a 6" cutting width and mows at 3.6 acres per hour. The parks
department mows 5 days per week during season, and this upgrade will reduce
labor costs by one seasonal worker. This also allows us to maintain more parcels
in a day, leading to a higher level of maintenance throughout our park system.
This mower also has a much lower annual maintenance cost due to the high
quality of the build, which has been borne out by staff's experience with our
current model. The Parks department ordered this equipment from Toro in 2021.
It recently arrived and this request is for authorization of the payment. The
mower is eligible for purchase under the Sourcewell contract, a nationwide-
purchasing collaborative that satisfies the City's purchasing policy.
STAFF RECOMMENDATION: Authorize the parks department to purchase a Toro
4000D from Spartan Distributors for $73,582.01.
Motion by Commissioner Kochin, second by Commissioner German, to
authorize the parks department to purchase a Toro 4000D from Spartan
Distributors for $73,582.01.
ROLL VOTE: Ayes: Kochin, Johnson, Kilgo, German, and Gorman
Nays: None
MOTION PASSES
M. Playground Purchase for Joe Clifford Park (ARPA Funding) DPW- Parks
In April 2024 an RFP was released for a new playground at Joe Clifford with a
target cost of $150,000, several bids were received. On May 20th we held an
open house at the park for the community to solicit feedback on the options.
They selected Gametime/Sinclair, option 1, out of the top candidates.
The Joe Clifford park playground was removed in the fall of 2023 for safety
reasons. Prior to investing in a new playground, staff worked with the underlying
property owner (the Church of God in Christ or COGIC) to execute an
easement, securing the City's property rights for the park indefinitely. That
easement was approved by the Commission on April 23, 2024.
Now that the property rights for the park are secure, $165,000 for capital
improvements at the park is included in the Parks Capital Plan for a new
playground and additional improvements. An RFP was released in April with a
target cost of $150,000 and several bids were received for this park. Multiple
playgrounds scored in the top tier, so on May 20th we held an open house at
the park for the community to solicit neighborhood responses. They selected
Gametime/Sinclair, option 1, out of the top candidates.
Gametime: $150,000
Miracle: $150,000
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Park Vision: $146,512.50
STAFF RECOMMENDATION: To authorize staff to contract with Sinclair Recreation
for a new playground and installation at Joe Clifford Park.
Motion by Commissioner German, second by Commissioner Kilgo, to authorize
staff to contract with Sinclair Recreation for a new playground and installation at
Joe Clifford Park.
ROLL VOTE: Ayes: Gorman, Kochin, Johnson, Kilgo, and German
Nays: None
MOTION PASSES
N. Rezoning of properties on Beach St, Indiana Ave, Ohio Ave, Simpson
Ave, and Nelson St from R-1 to R-2. Planning
Staff initiated request to rezone the following properties from R-1, Low Density
Single-Family Residential to R-2, Medium Density Single Family Residential: 1510,
1520, 1528, 1536, 1542, 1548, 1554, 1562, 1568, 1582, 1590, 1598, 1602, 1610, 1616,
1622, 1636, 1646, 1650, 1656, 1662, 1668, 1682, 1686, 1692, and 1704 Beach
Street; 3660 Indiana Avenue; 1360,1368, 1374, 1386, 1412, 1430, 1448, 1450, 1516,
1517, 1523, 1530, 1538, 1550, 1551, 1560, 1563, 1569, 1570, 1579, 1580, 1590, 1600,
1603, 1622, 1631, 1635, 1636, 1632, 1634, 1640, 1642, 1651, 1652, 1661, 1663, 1666,
1674, 1675, 1682, and 1690 Nelson; 3600 and 3601 Ohio Avenue; and 3691
Simpson Avenue.
Staff has received several calls over the past year from property owners in this
area that had some concerns about their R-1 zoning designation. Many
properties within this focus area are considered “legally non-conforming”
because their lots do not meet the minimum lot size requirements (minimum of
50 feet of street frontage and 6,000 sf total). Some property owners were having
difficulties with financing options since they would not be able to rebuild after a
disaster without a variance from the Zoning Board of Appeals. A couple
property owners were inquiring about splitting their large lots, only to find that
they were just short on the amount of land needed for two lots.
This would not allow more housing types (duplexes, etc), it only modifies the size
of a buildable lot. A focus group was held in March with the property owners.
The Planning Commission unanimously recommended approval of the rezoning
at their May meeting.
STAFF RECOMMENDATION: To approve the rezonings as listed in the packet.
Motion by Commissioner Kilgo, second by Commissioner Gorman, to approve
the rezoning as listed in the packet.
ROLL VOTE: Ayes: German, Gorman, Johnson, and Kilgo
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Nays: Kochin
MOTION PASSES (REQUIRES SECOND READING)
2024-51 NEW BUSINESS
A. Juneteenth Resolution Manager's Office
Updated Juneteenth Resolution per Mayor's request.
STAFF RECOMMENDATION: To adopt the Juneteenth Resolution as presented.
Motion by Commissioner Kilgo, second by Commissioner Gorman, to adopt the
Juneteenth Resolution as presented.
Motion amended by Commissioner German, second by Commissioner Kilgo to
amend the Juneteenth Resolution to fly the Juneteenth Flag at City Hall as well
as Hackley Park.
ROLL VOTE ON AMENDED MOTION:
Ayes: Kilgo, German, Gorman, Kochin, and Johnson
Nays: None
MOTION PASSES
ROLL VOTE ON ORIGINAL MOTION:
Ayes: German, Gorman, Kochin, Johnson, and Kilgo
Nays: None
MOTION PASSES
ANY OTHER BUSINESS
There is a plant swap at McGraft Park on Sunday from noon to 3:00 p.m.
Engagement Session at Seyferth Park on Wednesday, May 29th, from 3:30 p.m.
to 5:30 p.m. reference skate park area. Monday, June 3rd, from 5:00 p.m. to
6:30 p.m. is the Idea Day reference the future of Hartshorn Park and Marina.
Pride Parade and Festival is Saturday, June 1st, 10:30 a.m. Parade, and 11:30
a.m. is Opening Ceremony. Food Insecurity in Muskegon County is May 31st,
9:00 a.m. to 10:30 a.m. at Muskegon Community College Stevenson Center,
Room 2323. Taste of Muskegon is June 7th and 8th. Food Truck Rally is
Wednesday, June 5th. Mayor Johnson introduced Kayla Tucker who is now with
the Muskegon Chronicle MLive.
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PUBLIC COMMENT ON NON-AGENDA ITEMS
Public comments received.
ADJOURNMENT
The City Commission meeting adjourned at 9:O5 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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