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CITY OF MUSKEGON
CITY COMMISSION MEETING
June 9, 2026 @ 5:30 PM
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, June 9,
2026. Mayor Johnson opened the meeting with a moment of silence, after
which the Commission and public recited the Pledge of Allegiance to the Flag.
ROLL CALL
Present: Mayor Ken Johnson, Vice Mayor Destinee Keener, Commissioners
Willie German, Jr., Kiley Jackson, Rebecca St.Clair, and Jay Kilgo, City Manager
Jonathan Seyferth, City Attorney Brennen Gorman, and City Clerk Ann Marie
Meisch
Absent: Commissioner Katrina Kochin
2026-43 PUBLIC HEARINGS
A. PA 198 Industrial Facilities Exemption — American Fabricated Products,
INC. — 331 W. Laketon Ave. Economic Development
Pursuant to Public Act 198 of 1974, as amended, American Fabricated
Products, INC has requested the issuance of an Industrial Facilities Exemption
certificate for their property located at 331 W. Laketon Ave.
American Fabricated Products, Inc. (American Fab) has submitted an
application for an Industrial Facilities Exemption (IFT) certificate for real property
improvements at 331 W. Laketon Avenue. The company plans to rehabilitate
the 64,366 square-foot facility with a total investment of $665,996.
American Fab is relocating its operations from Spring Lake to the City of
Muskegon. Approximately 40% of the company's current workforce resides
within the City of Muskegon, and the company anticipates creating 22
additional jobs as part of this expansion.
If approved, the IFT certificate would reduce property taxes on the eligible real
property improvements by 50% for the duration of the exemption.
American Fab is a West Michigan manufacturer specializing in advanced
metal fabrication, precision machining, laser cutting, CNC machining, welding,
robotic welding, metal forming, assembly, and prototype-to-production
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manufacturing services. The company serves a diverse customer base,
including the defense, automotive, furniture, industrial, logistics and
warehousing, agricultural, medical, and food service sectors, and supports
both OEMs and their suppliers. American Fab is also a supplier to prime and
sub-prime defense contractors and manufactures components for military
defense vehicles.
In addition to the IFT request, American Fab will be requesting a Brownfield Plan
Amendment from the Brownfield Redevelopment Authority on June 9, 2026, to
allow for the reimbursement of eligible activities. Final consideration of the
Brownfield Plan Amendment is scheduled before the City Commission on June
23, 2026.
Following its review, the City's Internal Tax Committee recommends approval of
a 9-year abatement term for the proposed investment.
STAFF RECOMMENDATION: I move to close the public hearing and approve the
issuance of an Industrial Facilities Exemption certificate for a period of nine (9)
years for the property located at 331 W. Laketon Ave. and to authorize the
Mayor and City Clerk to sign the application and resolution.
The Public Hearing opened to hear and consider any comments from the
public. Public comments were heard in support from Emily Morgenstern.
Motion by Vice Mayor Keener, second by Commissioner Kilgo, to close the
public hearing and approve the issuance of an Industrial Facilities Exemption
certificate for a period of nine (9) years for the property located at 331 W.
Laketon Ave. and to authorize the Mayor and City Clerk to sign the application
and resolution.
ROLL VOTE: Ayes: St.Clair, Johnson, Kilgo, Keener, German, and Jackson
Nays: None
MOTION PASSES
PUBLIC COMMENT ON AGENDA ITEMS
No public comments were made.
2026-44 CONSENT AGENDA
A. Approval of Minutes City Clerk
To approve minutes of the May 26, 2026, City Commission Meeting.
STAFF RECOMMENDATION: Approval of the minutes.
B. Financial Policies Finance
To update the City of Muskegon Financial Policies.
Key changes to the financial policies:
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• Proceeds from Sale of City-Owned Real Estate goes towards the Housing
Fund not the Public Improvement Fund
• Updated Travel Expense Reimbursement & Meal Costs
• Coin Acceptance Language (New)
• Updated Poverty Exemption Guidelines for the Assessor
STAFF RECOMMENDATION: Staff recommends the approval of the updated
Financial Policies as presented to the Commission.
C. Equipment Purchase: Parks Department - Bobcat UW56 DPW- Parks
The Parks Department seeks to purchase a Bobcat UW56, also known as a
ToolCat, along with multiple attachments from Grand Rental for a total cost of
$107,255 through a Sourcewell cooperative purchasing contract. This
equipment is well-suited for municipal and parks operations because it
combines the functionality of several pieces of equipment into one compact
platform. The machine is capable of operating in tighter park environments,
trails, parking lots, athletic complexes, sidewalks, and facility areas where larger
equipment can be less efficient or cause turf damage. Its all-season
capabilities allow the City to utilize the equipment throughout the year for snow
and ice control, hauling materials, brush and debris cleanup, landscaping, field
maintenance, construction support, and general maintenance activities.
Included attachments and accessories consist of a 68-inch angle broom to
improve sand clearing down by the beach on sidewalks, 14-inch auger drive
unit to help our plant trees (currently hand digging) and bollard installations, 68-
inch heavy-duty bucket, an 8-foot snow pusher that will be extremely helpful in
snow clearing as well as a snow blower attachment (sidewalk snow clearing).
The package also includes an extended warranty for 3000 hours. This
equipment will benefit parks, recreation, forestry, cemetery, water & sewer and
highway.
STAFF RECOMMENDATION: Move to authorize staff to purchase a Bobcat UW56
from Grand Rental for $107,255.
D. Equalization and Assessing Contract Finance
Contract with the County of Muskegon to provide Equalization and Assessing
Services from July 1, 2026 to June 30, 2031.
The purpose of this Agreement is to provide for a property assessment
administration program to be administered by the County Equalization Director,
or designated representative, which will list, appraise, and maintain a complete
set of records for all real and personal property, subject to ad valorem taxation,
specific taxes, and in-lieu-of tax agreements within the Corporate limits of the
City of Muskegon. The base annual fee of $470,000 starting July 2026 will be
subject to a 3% increase effective July 1, 2027, and annually on this date for
every year thereafter. The County Equalization Department will provide a staff
member to be on site at City Hall one full working day per week beginning
September 8, 2026.
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STAFF RECOMMENDATION: Staff recommends that the Commission approve the
agreement with the County of Muskegon to provide Equalization and Assessing
Services for the City of Muskegon, effective July 1, 2026, through June 30, 2031.
E. MERS 457 Participation Agreement Finance
MERS requires that Contribution Addendum to ensure that our Employer Match
on record matches what was negotiated or agreed upon per each bargaining
unit. Non-Union's employer match is $3,000. Clerical and DPW's employer
match is $2,000.
MERS requires a Contribution Addendum be approved by the City Commission
to ensure that the employer match on record aligns with what was negotiated
or agreed upon for each bargaining unit. The employer match for Non-Union
employees is $3,000, while the employer match for Clerical and DPW
employees is $2,000.
STAFF RECOMMENDATION: I recommend that the Commission approve the
MERS Contribution Addendum for the employer 457 match for the Non-Union,
DPW, and Clerical bargaining units.
F. Asphalt Emulsion Spill Remediation Public Works
Staff is requesting retroactive approval to pay $129,366.50 to GFL Environmental
for cleanup related to an asphalt emulsion spill at DPW.
On March 26, 2026, Department of Public Works staff discovered that asphalt
emulsion had discharged from a heated storage tank at the DPW facility. The
material entered the storm sewer system and eventually flowed into Little Black
Creek near the Roberts Street outfall.
DPW staff immediately contained the release at our facility to prevent
additional material from entering the storm sewer system. Muskegon County
Hazardous Materials Response Team and EGLE were notified, and GFL
Environmental was contracted to perform containment and cleanup. GFL
responded within hours, installed containment booms in the creek, and
cleaned the impacted sections of the storm sewer system. Waste was
temporarily stored in containers at the DPW facility prior to disposal. The cost
for containment, cleanup, and disposal by GFL Environmental for $129,366.50
was approved under the Emergency Procurements section of the Purchasing
Policy. This expense was not included in the adopted streets budget, and the
necessary budget amendments have been made as part of the Q4 reforecast.
While the incident is regrettable, the prompt action of DPW staff and our
community partners prevented the spill from permanently affecting our
waterways and environment. Staff is evaluating improvements to our asphalt
emulsion storage system to eliminate the potential for future unexpected
discharges and flows into the storm sewer system. Until that time the City has
been purchasing asphalt emulsion from the County, which has a similar tank at
their facility.
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STAFF RECOMMENDATION: I move to authorize staff to pay GFL Environmental
$129,366.50 for the cleanup of an asphalt emulsion spill at DPW.
G. Beach St. Parking & Pedestrian Facility Improvements Public Works
Staff requests authorization to enter into a contract with Dans Excavating in the
amount of $949,102.40 for the Beach Street Parking and Pedestrian Facility
Improvements project.
Our engineering consultant, DLZ, solicited bids for the Beach Street Parking and
Pedestrian Facility Improvements Project. This project includes improvements to
the angled parking between the bathroom buildings, as well as a much
improved and widened concrete sidewalk/pathway over the same limits. The
submitted low bid amount was from TBD Construction Services in the amount of
$893,130.80. After checking references, DLZ and staff recommend awarding
the project to the second low bidder, Dans Excavating, in the amount of
$949,102.40. The project was budgeted at $1.2M, so the recommended bid is
well within budget.
STAFF RECOMMENDATION: Move to authorize staff to enter into a contract with
Dans Excavating in the amount of $949,102.40 for the Beach Street Parking and
Pedestrian Facility Improvements project.
J. Rad Dads Agreement - ITEM REMOVED PER REQUEST OF STAFF Manager's
Office
Motion by Commissioner German, second by Commissioner St.Clair, to adopt
the Consent Agenda as presented minus items H and I.
ROLL VOTE: Ayes: Johnson, Kilgo, Keener, German, Jackson, and St.Clair
Nays: None
MOTION PASSES
2026-45 ITEMS REMOVED FROM THE CONSENT AGENDA
H. Approval of the FY 2026-27 Budget Manager's Office
Presenting the Fiscal Year 2027 budget- the total appropriation across all funds
is $132.9 million, with $45.9 million appropriated from the general fund.
Staff distributed the Fiscal Year 2027 budget on May 2026. We held our public
hearing on May 26, 2026, and further discussion took place at our work session
on Monday, June 8. The staff recommends approval of the FY 2027 budget as
presented, with total appropriations of $132.9 million, including $45.9 million in
the general fund. The General Fund budget is presented with a budget deficit
of $705,256.
STAFF RECOMMENDATION: Move to approve the budget resolution for Fiscal
Year 2026-27, which begins on July 1, 2026.
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Motion by Commissioner Kilgo, second by Commissioner German, to approve
the budget resolution for Fiscal Year 2026-27, which begins on July 1, 2026.
ROLL VOTE: Ayes: Kilgo, Keener, German, Jackson, St.Clair, and Johnson
Nays: None
MOTION PASSES
I. Contract for Legal Services Manager's Office
The agreement between the City of Muskegon and Parmenter O'Toole, P.C. for
legal services is through June 30, 2031.
The contract outlines the basics of the relationship between the City of
Muskegon and Parmenter Law, including the schedule of fees for legal services,
which would be as follows:
a. $195 per hour from July 1, 2026, through June 30, 2027
b. $195 per hour from July 1, 2027, through June 30, 2028
c. $200 per hour from July 1, 2028, through June 30, 2029
d. $205 per hour from July 1, 2029, through June 30, 2030
e. $210 per hour from July 1, 2030, through June 30, 2031
We will pay a $35,000-per-month retainer to Parmenter for their services. This is
reviewed quarterly to determine if additional payments are needed for legal
services provided based on the hourly rates agreed to.
Either party may terminate the agreement upon 30 days' notice. In the case of
City termination, there is also a 30-day cure period. To start the 30-day cure
period, the City shall provide written notice of its dissatisfaction with our legal
representation, giving Parmenter a month to remedy the situation. If it is not
remedied then the City would give formal notice of termination. The
agreement also notes that the City Charter shall prevail regarding the
appointment of the attorney, which is covered in Chapter 3, Section 2
(appointment) of the City Charter and Chapter 5, Section 10 (duties).
It should be noted that several of our appointed administrative offices have
contracts in addition to the attorney, including the City Manager, Auditors, and
Assessor. These contracts do not remove the Commission's appointment
authority, which occurs every two years during the Commission's organizational
meeting.
STAFF RECOMMENDATION: To approve the contract with Parmenter O'Toole,
P.C. for legal services through June 30, 2031.
Motion by Commissioner Kilgo, second by Commissioner St.Clair, to approve
the contract with Parmenter O'Toole, P.C. for legal services through June 30,
2031.
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ROLL VOTE: Ayes: Keener, Jackson, St.Clair, Johnson, and Kilgo
Nays: None
MOTION PASSES
ANY OTHER BUSINESS
Commissioner Kilgo stated the pride event last weekend went off great and
thanked the organizers. June 19th there will be a festival and parade from 11:00
a.m. to 4:00 p.m. and will be held at Heritage Landing. The Black Business Expo
is June 21st at the Muskegon Farmers Market, and Taste of Muskegon is coming
up in June.
GENERAL PUBLIC COMMENT
Public comments received.
CLOSED SESSION
A. Closed Session - Attorney Client Privileged Communication - ITEM
REMOVED PER REQUEST OF STAFF City Clerk
ADJOURNMENT
The City Commission meeting adjourned at 6:57 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC City Clerk
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