The city of Muskegon and its firefighters' union have all but resolved a longstanding dispute that had both sides at odds over firefighter benefits and department manpower for more than a year. Both Muskegon City Manager Frank Peterson and IAFF Local #370 President Chris Drake confirmed on Thursday that they have been negotiating on a new contract over the summer. Drake said those negotiations have been amicable and favorable for both sides. That means, by all accounts, that the city will keep its fire department intact instead of dissolving the 100-year-old department as planned. City leaders had been in talks to contract fire service out to Muskegon Heights. Peterson said he hasn't officially rescinded that initial offer, but has been in contact with Muskegon Heights City Manager Jake Eckholm to let him know that keeping an in-house fire service was more than likely.