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CITY OF MUSKEGON CITY COMMISSION WORKSESSION AND COMMUNITY RELATIONS COMMITTEE Monday, December 3, 2007 5:30 p.m. City Commission Chambers AGENDA I. Muskegon/Webster Speed Limit and Traffic Lights. ENGINEERING 2. Renaissance Zone Extensions. PLANNING 3. Summer Property Tax Collections. TREASURER 4. Any Other Business. COMMUNITY RELATIONS AGENDA I. Approval of November 5, 2007, Minutes. 2. Appointment to the DDA. 3. Any Other Business. 4. Adjournment. City of Muskegon City Commission Worksession Monday, December 3, 2007 City Commission Chambers 5:30 PM MINUTES 2007-102 Present: Commissioners Warmington, Gawron, Shepherd, Spataro, and Wisneski. Absent: Commissioner Carter and Wierengo. Muskegon/Webster Speed Limit and Traffic Lights The tum back of Muskegon and Webster to two-way traffic was completed on November 15, 2007. There have been no reported accidents. There have been a few requests to add additional on street parking. City Commissioners made inquiries regarding possible additional changes including signage. City Engineer, Mohammad Al-Shatel, responded. Police Chief Kleibecker indicated that State Law mandates that proper testing take place before the speed limit can be adjusted. Testing should happen in the spring. Renaissance Zone Extensions It was the consensus of the Commission to place each Renaissance Zone extension request on the agenda for City Commission consideration. Summer Property Tax Collection Motion by Commissioner Spataro, seconded by Vice Mayor Gawron to adopt the resolution to begin collection of the State Education Tax in a summer levy beginning with the summer 2008 levy. Ayes: Spataro, Warmington, Wisneski, Gawron, and Shepherd. Nays: None. MOTION PASSES Adiournment Motion by Commissioner Wisneski, seconded by Commissioner Shepherd to adjourn at 6:30 p.m. MOTION PASSES ~ ; : \ , ~ ~·u SL J-~ Ann Marie Becker, MMC City Clerk CITY OF MUSKEGON COMMISSION WORKSESSION MEETING RESCHEDULED The Commission Worksession Meeting that was scheduled for Monday, December 10, 2007, has been rescheduled to Monday, December 3, 2007, at 5:30 p.m. in the City Commission Chambers, 933 Terrace, Muskegon. It will be a joint meeting with the Community Relations Committee Meeting. ~'"''f\\~\J\;U ~\_,(Jl~ Ann Marie Becker, MMC City Clerk Notice Dated: November 20, 2007. Commission City Manager Department Heads Chronicle Post CITY OF MUSKEGON CITY MANAGER'S OFFICE Memo To: Mayor Warmington & City Commission From: Bryon Mazade, City Manager df1/ Copy: Bob Kuhn, Director of Public Works Tony Kleibecker, Director of Public Safety Mohammed AI-Shatel, Deputy Director of Public Safety v Ann Becker, City Clerk Date: November 15, 2007 Re: Speed Limits Attached are some information from AAA that Bob Kuhn found and a memo from Tony Kleibecker regarding setting speed limits. I thought you would like to have this information in advance of our discussion about speed limits at your December work session. Of particular note is the 2006 law that determines the methods that can be used to set speed limits. Please contact me if you have any questions. BLM /pb Alt. pb\BLM COMM, SPEED LIMITS 111507 Automobile Club of Michigan SETTING REALISTIC Mich~n SPEED LIMITS SPEED LIMIT This publication is based on a booklet produced by the Highway Engineering Department of the Au- tomobile Club of Southern California under the direc. tion of Paul Fowler, Traffic Engineer. The initial need for a practical guide on speed zoning in Michigan was voiced by Bruce Madsen, Man- aging Director of the Traffic Improvement Association of Oakland County, who is a co-author of this text. Information for the booklet was obtained from Richard Folkers, formerly Traffic Engineer for the Oakland County Road Commission, and from interviews with several traffic authorities in Michigan actively engagecl in traffic engineering, traffic Jaw enforcement and safety education. Technical references include: ,,' Institute of Traffic Engineers' Handbook Michigan Manual of Uniform Traffic Control Devices (1973) Michigan State Police Standards for Traffic En• gineering Investigations "Realistic Speed Zoning," by Paul Fowler, Au- tomobile Club of Southern California Uniform Vehicle Code, National Committee on Uniform Laws and Ordinances Vehicular Speed Manual, Inter-County Regional Planning Commission, Denver, Colorado Additional copies may be obtained from: Arthur C. Gibson, Manager Safety and Traffic Engineering Department Automobile Club of Michigan Auto Club Drive Dearborn, Michigan 48126 Introduction This manual is designed as a practical guide to REALISTIC speed zoning. It is offered to both in- terested citizens and public officials for better under- standing of "why," "where" and "how" speed zoning is established, and the laws which make it possible. Hopefully, it will serve to explain why the arbitrary enactment of speed limits is not a cure-al/for traffic ills and why it might, in fact, create new and greater problems. Speed zoning was made necessary by changing times. In the early days of the automobile in Michigan, the demarcation between rural areas and cities or vil- lages was clear. Thus, it was simple to set speed limits - one for the open countryside and one for the centers of population. With the spread of urbanization and the development of suburban communities, the situation changed. Rural areas began to shrink and disappear. Often they became difficult to identify. During the same period the volume of motor vehicles multiplied and re- multiplied. There came a need for modified speed post- ings in these transition areas between maximum limits for,open areas and maximum limits for business. This manual will emphasize the special need for neighboring communities to have speed limits on major streets as uniform as possible, to encourage smooth and ! I I orderly flow of traffic. It will outline the means by which this objective can be attained. It will also emphasize that the great majority of drivers are reasonable and prudent and will voluntarily comply with speed limits which are realistically estab- lished for both their safety and convenience. r ,I THE LAWS FOR SPEED ZONING Realistic speed zoning is predicated on national acceptance of a traffic engineering truism that . . . . . . in the absence of intensive enforce- ment, drivers tend to operate their vehi- i cles at speeds they feel are reasonable and proper, regardless of posted speed. This "reasonable and proper" theme is reflected in Michigan's Basic Speed Law, set fo11h in the Michigan Vehicle Code. Taking precedence over all other speed laws, it reads: "Any person driving a vehicle on a highway shall drive the same at a careful and prudent speed not greater than nor less than is reason- able and proper, having due regard to the traffic, surface and width of the highway and of any other conditions than [sic] existing, and no per- son shall drive any vehicle upon a highway at a speed greater than will permit him to bring it to a stop within the assured clear distance ahead." (Sec. 257.627) All 50 states have a similar basic law, although some phrase it in the negative, such as "no person shall drive ... at a speed greater than is reasonable or prudent." Other laws on speeds included in the Michigan Vehicle Code are briefly reviewed below. Absolute Speed At one end of the spectrum is the "absolute," sometimes referred to as a "blanket" speed maximum, covering all highways in Michigan. Prior to the 1974 energy crisis, this law set a limit on state and county highways at 65 mph in daylight hours and 55 mph in hours of darkness, except upon freeways. The top limit at this publication is, of course, 55 mph. Provision for reduction of maximum speeds is provided by statute. (Sec. 257.628) Prima Facie Speed In contrast, there is the "prima facie speed limit." Legal theory indicates that a violator of this "on the face of it" limit might defend himself in court as "careful and prudent" despite his violation. The prima facie limit sets speed for business and residential dis- tricts at 25 mph (Sec. 257.627b) but ample authority, frequently used, is provided for modification. This area of modification is the main thrust of the present text. Certain "special" speed limits for school buses, vehicles with trailers and heavy trucks may be estab- lished. Likewise, there is authority for special controls at unsafe bridges. There is also provision for "advisory" speed signs. These are used to alert otherwise careful drivers confronted by a situation for which they are unpre- pared, such as a sharp curve. So-called "advisory" speeds are enforced only under the basic speed law. Modified Prima Facie Speeds Nighttime maximum speed is set at 55 mph on county and state trunk lines and prima facie speed is set at 25 mph in business and residential areas. Therefore, between 25 mph and 55 mph there exists a gray, inter- mediate area which may be described as "modified" or "permissive" speed zones. These would not exceed the 55 mph nighttime limit. The state highway commissioner or the county road commission, working with Michigan State Police, has authority to "determine upon the basis of an en- f gineering and traffic investigation that the speed of ve- hicular traffic on a state trunk line or county highway is greater or less than is reasonable or safe ... " They may then declare "a reasonable and safe maximum or minimum speed limit .. " (Sec. 257.678) Local authorities may establish prima facie speed limits on their own highways with certain limita- tions. In business and residential areas the limits may be set above 25 mph if the arteries are designated as through streets and cross traffic is halted by "Stop" signs. Outside business and residential districts, local prima facie limits "shall in no case be less than 25 miles per hour." (Sec. 257.629) A special statute prohibits local authorities from establishing any speed or traffic controls upon a state highway within their limits unless approved by the state highway commissioner "in the interest of public safety and convenience." (Sec. 257.609) The 1973 Michigan Manual of Uniform Traffic Control Devices (Sec. 7B-12) provides for special school zone speed postings, applicable at times when children are expected to be present. r Mt' e'thtif I I The Why of Speed Zoning Such words and phrases as "reasonable and proper"; "careful and prudent speed not greater nor less than is reasonable and proper"; "reasonable and safe maximum or minimum speed limit" and ,. "convenience" appear throughout the statutes. Realistic speed zoning, through adoption of modified prima facie limits, is based upon the documented conclusion that a great majority of drivers behave in a reasonable manner upon the highway. Unreasonable restrictions encourage wholesale violations and disrespect for the whole traffic control system. Speed laws are established for protection of the public and the regulation of unreasonable behavior by any individual. Realistic zoning, as authorized by stat- ute, recognizes that the normally careful and competent actions of a reasonable person should be consid- ered legal. 85 Percentile Speed The prime basis of what is considered proper speed for the normally careful and competent actions of a reasonable person is the so-called and nationally rec- ognized "85 percentile speed." This is that speed at or below which 85 percent of the observed traffic is moving. Experience gained over a long period indicates that posting of higher or lower speed limits has not significantly changed the 85 percentile speed. Likewise, it has been demonstrated time and time again that rais- ing a prima facie speed to its proper limit causes no increase in accidents. Adoption of the 85 percentile speed determina- tion recognizes that the other 15 percent of drivers are above that speed which is "reasonable and proper, having due regard to the traffic, surface and width of the highway and of any other conditions ... " This is the 15 percent of the driving public at which enforcement ac- tion should be directed. It has been established by many studies that this 15 percent of motorists cause a I: disproportionate number of accidents and have the ' worst driving records. Realistic Zoning Well-meaning but often uninformed citizens, and even officials under pressure, persist in the idea that the mere posting of lower speed limits within their corpo- rate boundaries will improve safety. Actually, compe- tent surveys show that it is the driving environment which mainly influences speed. Realistic speed zones are of the utmost public importance for safe highways, if for no other reason than that they give enforcement officers a handle for the control of hazardous drivers without infringing upon I ' 11 I normally safe drivers. A few points to remember about realistic speed zones are: • They satisfy the requirements and in- tent of the state law for establishing prima facie speed limits on streets and highways. • They invite public compliance by con- forming to the behavior of the great ma- jority and by giving a clear reminder to non-conforming violators. • They offer an effective enforcement tool to police by clearly separating the flagrant violator from the reasonable majority. • They tend to minimize public an- tagonism toward police enforcement of , I unreasonable regulations. • They serve to place responsibility for justifying so-called "tolerances" upon those administrative agencies that grant them. I,. ' : L- • They lend credence and acceptability to the widely posted admonition "Speed Laws Strictly Enforced" at many city boundaries. And perhaps most important: • Realistic speed zones contribute sub- stantially to the smooth, orderly flow of traffic which is a majorfactor in pre- venting highway accidents. Any measure that encourages a smooth traffic flow should be adopted not only for safety but for the convenience and economy of the individual motorist. An unreasonably slow driver is a hazard. This is found in areas where unreasonably low posted limits may cause the over-cautious or law-conscious driver to be- come a hazard, especially when the limit is recognized as unreasonable by the majority. This causes lane hop- ping and sudden and dangerous spurts by normal drivers who would observe a realistic limit. Such prac- tices result in accidents and raise the ire of the average motorist. The national Uniform Vehicle Code recognizes this slow-speed problem in a regulation to the effect that no driver should operate at such a slow speed as to impede normal traffic flow, except when such reduced speed is required for safe operation or in compliance with law. Whenever possible, the setting of the speed limit to coincide with progression speed of the traffic signal system is desirable. When the posted speed limit varies, the use of signs indicating the signal setting speed pro- motes a smoother traffic flow. The Where of Speed Zoning The objective of a realistic speed zoning is to facilitate the orderly movement of traffic by increasing driver awareness of reasonable speed. Certain hazards may appear when an increase in prima facie speed is contemplated. If so, it is better to correct the hazardous conditions to meet traffic requirements than to restrict speed to conform with faulty conditions which can be corrected. Michigan Zoning In Michigan the areas for realistic speed zoning largely fall into two broad categories: 1. Realistic speed zones are needed on state and county trunk lines which carry appreciable volume of traffic through various roadside conditions and through numerous contiguous corporate limits in urban or suburban areas. It is especially important to establish realistic speed zones on highways where each _com- munity might otherwise set independent and conflicting limits despite the similarity of highway and traffic conditions. 2. Realistic speed zones are needed also on state and county trunk lines in rural areas which pass through small towns and villages or may include highway segments upon which unusual or unexpected hazards exist. By Michigan State Police rule-of-thumb, if a road segment has fewer than 30 intersecting driveways per mile, it is generally considered rural. ii Basically, these areas as broadly defined are 'I' ].,: transition areas which require modified prima facie :ui speed limits between the statutory 25 mph and 55 mph limits. Broad Participation The State Legislature has vested authority for regulation of state and county trunk lines with subse- quent involvement of state and county road authorities and Michigan State Police. If local authority were to dominate on these trunk lines the essential factor of similar speeds under similar conditions would be sacrificed. This does not imply that city, village and town- ship officers are, in practice, to be ignored. Explicit instructions to state police officers making recommen- dations for speed zoning state, "Opinions will be sought from the local State Police Post Commander, the sheriff or chief of police having jurisdiction, as well as from other local officials with known interests." Further instructions are for "close coordination with local officials and with their understanding." Numerous factors must be considered in deter- mining those areas in which modified prima facie speeds are indicated. In the next section of this booklet the several criteria have been reduced to a few broad categories. Information was compiled from publica- tions of the Michigan State Police, the Michigan Man- ual of Uniform Traffic Control Devices and standards of the Institute of Traffic Engineers. ':,,, I1: l:f I, ! I I , I C' The How of Realistic Speed Zoning This text does not purport to be a manual for traffic engineers, trained police officers or skilled tech- nicians. Rather, it is to provide a basic guide for those officials and laymen who wish better to understand how realistic speed zoning is determined. Foremost criteria for determination of modified prima facie limits in speed zoning are: 1. The 85 percentile speed of those actually driving upon the highway segment in ques- tion. 2. Accident history of the area, including analysis of the type and apparent causes of accidents as well as location. 3. Traffic volumes, including projected in- creases. 4. Roadside and adjacent area development, in- cluding turning movements as observed by the officer or traffic engineer. 5. Design speed of the particular highway seg- ment. 6. Determination of hidden hazards which might not readily be apparent to even the normally "careful and prudent driver." Speed Studies In Michigan, determination of 85 percentile speeds is usually made by radar check. The speed of separately traveling vehicles, from the slowest to the fastest, is recorded. It is simple to determine that, if 85 motorists of each 100 are driving at "X" mph or under, then "X" mph is the 85 percentile speed. The Vascar, a modification of radar, is some- times used. This requires a measured distance estab- lished in advance. Another device, seldom used, is the Enoscope. This is a system of mirrors placed at mea- sured distances by which motorists may be timed by stopwatch. The "pacing" system is also sometimes used. This is a system by which authorities cruise the highway and keep pace with random vehicles to learn motorists' speeds. Location of the speed survey is of great impor- tance. In practice, observation is made from an un- marked car in an inconspicuous place at the roadside. Intersections or momentary conditions which might slow driver speed are avoided. The time of speed studies is also carefully selected to avoid rush-hour commuter traffic when the presence of too many vehicles on the highway forces lower than normal speeds. As a national rule-of-thumb, the hours chosen are usually between 9:00 and 11:30 a.m. and 1:00 and 4:00 p.m., Mondays through Thurs- days, inclusive. In rural areas a normal minimum of JOO vehicles or two hours of sampling will be checked. Under urban or suburban conditions, the number of vehicles which must be checked may depend upon the Average Daily Traffic (ADT). One major Michigan county takes counts from 8:00 to 10:00 a.m. and from 2:00 to 4:00 p.m., Mondays through Fridays, and uses the following sliding scale based upon statistical analysis: I. JOO vehicle sample (or two hours maximum) for roads with an estimated ADT of 10,000 or less. 2. 200 vehicle sample for roads with estimated ADT of 10,000 to 20,000. 3. 300 vehicle sample for roads with estimated ADT of20,000 to 30,000. 4. 400 vehicle sample for roads with estimated ADT of 30,000 to 40,000. 5. For roads over 40,000 the sample should be increased proportionately. In general, longer time periods may be required in rural areas. But unless extraordinary conditions exist, the check points may be several miles apart when highway conditions are similar. The "pace speed" can be determined easily from the vehicle speed data sheet. It will usually be found that when the greatest number of vehicles travel within the same 10 mph range, 15% of the motorists will be over the IO-mile pace and 15% below. Accident Records Analysis of the accident records of a given seg- ment of highway to be zoned requires a study of the "where" and "why" of each crash rather than mere numbers. A high accident frequency could simply be the result of a high traffic volume, hence, increased exposure. The "where" of accidents is determined by spot maps or computer printouts. For some high accident locations, traffic authorities prepare "collision dia- grams" to further identify problems. These diagrams are schematic representations of the direction of movement of each vehicle or pedestrian involved. In addition, a "condition diagram" may be prepared to show physical features of the roadway when such things as view obstruction and roadside hazards should be considered in speed zoning. The other criteria for speed zoning previously listed may also have bearing on the "why" of acci- dents, as well as on the correct prima facie speeds to be determined. An increase in traffic volumes, not prop- erly projected in advance, would require restudy of the area. Roadside developments, new or under construc- tion, might necessitate major changes to prevent acci- dents. A hedge may blind an intersection or a factory exit. Any number of situations might be found which contribute to accidents. Proper analysis and evaluation of all factors underscore the importance of the experi- ence and expertise of the traffic engineer or the qualified police officer. No two areas or highway seg- ments are precisely alike but there are enough similarities to make what is learned at one location valuable at other locations. When need for modified prima facie zones has been established, a Traffic Control Order may be ob- tained on recommendation of Michigan State Police. The MSP and the Michigan Manual of Uniform Traffic Control Devices set forth standards for posting of the modified speeds limits. A few salient points are: • The speed limit should not be set at more than 7 mph below or above the 85 percentile speed. • Speed postings inside corporate limits should be in increments of 5 mph, as near as possible to the 85 percentile speed. • Speed limit changes on adjacent highway seg- ments outside incorporated limits should be made in increments of 10 mph. • Changes in speed limits along a given route should be held to a minimum. • Modified prima fade limits under favorable conditions are not usually established for a highway segment less than one-half mile long. Advisory signing is used instead. • Speed limit postings should be located as near as practicable to the point of change in limit. Additional signs should be installed beyond major intersections or at other locations where is is necessary to remind motorists of the limit. • Normally, signs should be installed at approx- imately one-half mile intervals. In rural areas "Reduced Speed Ahead" signs should be posted to give motorists advance warning of speed changes. The signs are not ordinarily needed in urban areas where speeds are relatively low. The Michigan Manual, Sections 2B-9 through 2B-15, gives detail as to the types and combinations of signing to be used. The Institute of Traffic Engineers' Handbook suggests that, after posting of speed zones, they be re- studied to determine if more than 15% of motorists are exceeding the limit. If so, it should be determined whether the limit should be raised or whether there are other factors such as inadequate posting or lack of enforcement or education. Location of modified speed posting is critical on state or county trunk lines which cross successive municipal limits. If there is no notable change in road- side conditions at these limits, any changes should be made in accord with realistic zoning rather than on the basis of invisible boundaries. Regardless of the other matters consid- ered, however, the 85 percentile becomes the critical criterion in determination and posting of modified prima facie speeds. By all standards the realistic speed zone limit, unless there are clear contradictory findings, is set at not more than seven miles per hour below the 85 percentile. ' l ,,_ '-J '"'"' V Muskegon Police Department NOV {j 5 200? Anthony L. Kleibecker Director of Public Safety 980 Jefferson www. muskegonpo I ice.com Phone: 231-724-6750 Muskegon, Michigan FAX: 231-722-5140 49440 MEMORANDUM TO: Mr. Bryon Mazade City Manager FROM: Anthony L. Kleibecker Director of Public Safety r;;- L. ) ~ CC: Mr. Bob Kuhn Mr. Mohammed Al-Shatel DATE: November 5, 2007 SUBJECT: Speed Limitations After the discussion at a recent City Commission meeting regarding the posted speed limits along Muskegon Avenue and Webster Avenue, I reviewed the cun·ent law in regards to the establishment of speed limits. Under the current Michigan Vehicle Code, section 257.627 addresses the issue of establishing speed limits. It should be noted that this law changed last year and the current provisions went into effect in November of 2006. Based upon this current statute, there are two statutory methods which may be utilized to establish posted speed limits. The first is a traffic and engineering study which has been the practice for many years. The second involves a measurement which utilizes the term "vehicular access points". The statute defines a "vehicular access point" as a driveway or intersecting roadway. The speed is then determined by a count which corresponds with the following speed assignment: • 25 miles per hour on a highway segment with 60 or more vehicular access points within ½mile. • 35 miles per hour on a highway segment with not less than 45 vehicular access points but no more than 59 vehicular access points within ½ mile. • 45 miles per hour on a highway segment with not less than 30 vehicular access points but no more than 44 vehicular access points within ½ mile. I thought it would be helpful to have this information for future discussions. I reiterate my statement at the time of the previous discussion that we must follow state statute when establishing speed limits within the city. Should you have any questions, please don't hesitate to contact me. ~-vrintDocument Page 1 of2 MICHIGAN VEHICLE CODE (EXCERPT) Act 300 of 1949 257.627 Speed limitations. Sec. 627. (1) A person operating a vehicle on a highway shall operate that vehicle at a careful and prudent speed not greater than nor less than is reasonable and proper, having due regard to the traffic, surface, and width of the highway and of any other condition then existing. A person shall not operate a vehicle upon a highway at a speed greater than that which will permit a stop within the assured, clear distance ahead. (2) Except in those instances where a lower speed is specified in this chapter or the speed is unsafe pursuant to subsection (I), it is prima facie lawful for the operator of a vehicle to operate that vehicle at a speed not exceeding the following, except when this speed would be unsafe: (a) 25 miles per hour on all highways in a business district as that term is defined in section 5. (b) 25 miles per hour in public parks unless a different speed is fixed and duly posted. (c) 25 miles per hour on all highways or parts of highways within the boundaries of land platted under the land division act, 1967 PA 288, MCL 560.101 to 560.293, or the condominium act, 1978 PA 59, MCL 559.101 to 559.276, unless a different speed is fixed and posted. (d) 25 miles per hour on a highway segment with 60 or more vehicular access points within 1/2 mile. (e) 35 miles per hour on a highway segment with not less than 45 vehicular access points but no more than 59 vehicular access points within 1/2 mile. (f) 45 miles per hour on a highway segment with not less than 30 vehicular access points but no more than 44 vehicular access points within 1/2 mile. (3) It is prima facie unlawful for a person to exceed the speed limits prescribed in subsection (2), except as provided in section 629. (4) A person operating a vehicle in a mobile home park as defined in section 2 of the mobile home commission act, 1987 PA 96, MCL 125.2302, shall operate that vehicle at a careful and prudent speed, not greater than a speed that is reasonable and proper, having due regard for the traffic, surface, width of the roadway, and all other conditions existing, and not greater than a speed that permits a stop within the assured clear distance ahead. It is prima facie unlawful for the operator of a vehicle to operate that vehicle at a speed exceeding 15 miles an hour in a mobile home park as defined in section 2 of the mobile home commission act, 1987 PA 96, MCL 125.2302. (5) A person operating a passenger vehicle drawing another vehicle or trailer shall not exceed the posted speed limit. (6) Except as otherwise provided in this subsection, a person operating a truck with a gross weight of 10,000 pounds or more, a truck-tractor, a truck-tractor with a semi-trailer or trailer, or a combination of these vehicles shall not exceed a speed of 55 miles per hour on highways, streets, or freeways and shall printDocument Page 2 of2 not exceed a speed of 35 miles per hour during the period when reduced loadings are being enforced in accordance with this chapter. However, a person operating a school bus, a truck, a truck-tractor, or a truck-tractor with a semi-trailer or trailer described in this subsection shall not exceed a speed of 60 miles per hour on a freeway if the maximum speed limit on that freeway is 70 miles per hour. (7) Except as otherwise provided in subsection (6), a person operating a school bus shall not exceed the speed of 55 miles per hour. (8) The maximum rates of speeds allowed under this section are subject to the maximum rate established under section 629b. (9) A person operating a vehicle on a highway, when entering and passing through a work zone described in section 79d(a) where a normal lane or part of the lane of traffic has been closed due to highway construction, maintenance, or surveying activities, shall not exceed a speed of 45 miles per hour unless a different speed limit is determined for that work zone by the state transportation department, a county road commission, or a local authority, based on accepted engineering practice. The state transportation department, a county road commission, or a local authority shall post speed limit signs in each work zone described in section 79d(a) that indicate the speed limit in that work zone and shall identify that work zone with any other traffic control devices necessary to conform to the Michigan manual of uniform traffic control devices. A person shall not exceed a speed limit established under this section or a speed limit established under section 628 or 629. (10) Subject to subsections(!) and (2)(c), speed limits established pursuant to this section are not valid unless properly posted. In the absence of a properly posted sign, the speed limit in effect shall be the general speed limit pursuant to section 628(1). (11) Nothing in this section prevents the establishment of an absolute speed limit pursuant to section 628. Subject to subsection(!), an absolute speed limit established pursuant to section 628 supersedes a prima facie speed limit established pursuant to this section. · (12) Nothing in this section shall be construed as justification to deny a traffic and engineering investigation. (13) As used in this section, "vehicular access point" means a driveway or intersecting roadway. (14) A person who violates this section is responsible for a civil infraction. History: 1949, Act 300, Eff. Sept. 23, 1949 ;-- Am. 1957, Act 190, Eff. Sept. 27, 1957 ;-- Am. 1959, Act 76, Eff. Mar. 19, 1960 ;-- Am. 1962, Act 120, Eff. Mar. 28, 1963 ;-- Am. 1966, Act 223, Imd. Eff. July 11, 1966 ;-- Am. 1974, Act 28, Imd . . Eff. Mar. 2, 1974 ;--Am. 1976, Act 190, Imd. Eff. July 8, 1976 ;--Am. 1978, Act 510, Eff. Aug. 1, 1979 ;-- Am. 1986, Act 92, Eff. June 5, 1986 ;-- Am. 1988, Act 460, Imd. Eff. Dec. 27, 1988 ;-- Am. 1990, Act 165, Imd. Eff. July 2, 1990 ;-- Am. 2003, Act 315, Eff. Apr. 8, 2004 ;--Am. 2004, Act 62, Imd. Eff. Apr. 13, 2004 ;--Am. 2006, Act 19, Eff. Nov. 9, 2006 ;-- Am. 2006, Act 85, Eff. Nov. 9, 2006 © 2007 Legislative Council, State of Michigan Rendered 11/2/2007 09:42:16 Michigan Compiled Laws Complete Through PA 114 of 2007 © 2007 Legislative Council, State of Michigan Courtesy ofwww.legislature.mi.gov 1 ., II 1 • .. • un,-,.,, 1 rt n 1 t"'\'\. I .. __ • __ .,_r,. _ ---·-- ___ .,, ______ n_l..! 11 /")/.-,0.f\'7 CITY COMMISSION POLICY EXTENSION OF TIME PERIOD FOR EXISTING RENAISSANCE ZONE PARCELS (July 24, 2007) POLICY: The City will establish a program which allows individuals, businesses, developers and business areas to submit proposals for extending the timeline for properties in the City's Renaissance zone for significant new economic development projects. Applications will be accepted to extend the time period for individual parcels for specific economic development projects located within the existing Zones and will be evaluated on the basis of the criteria identified in this policy. PURPOSE: To provide guidelines for evaluating and approving requests for extension of Renaissance Zone parcels for new development in zones that have not experienced significant development. GOALS: The City's goals in extending the time period for existing individual Renaissance Zone parcels are: 1. To create jobs; 2. To encourage investment; and 3. To clean up and reutilize vacant and underutilized properties. BACKGROUND In 1999, the Cities of Muskegon and Muskegon Heights were jointly designated as a Renaissance Zone. At that time, the City of Muskegon selected two areas of the city as sub- zones. The City of Muskegon Heights designated four sub-zones. These sub-zones are identified as development zones that are virtually tax free for fifteen years. In 2000, the State of Michigan approved legislation, permitting the Muskegon/Muskegon Heights Renaissance Zone to apply to the Michigan Economic Development Corporation to expand existing zones contiguously and designate up to four new sub-zones. In 2002, four new sub-zones were approved by the State for the City of Muskegon. The goal of the program has been to encourage investment and create jobs by reutilizing vacant, contaminated, and underutilized properties in blighted neighborhoods and industrial zones In 2006, the State of Michigan approved legislation which allows communities to apply to the Michigan Economic Development Corporation to extend the time period for existing Renaissance Zone parcels when a major economic development opportunity is proposed. PROGRAM The City will establish a program which allows individuals, businesses, developers and business areas to submit proposals for extending the timeline for properties in the City's Renaissance Zone for significant new economic development projects. Applications will be accepted to extend the time period for individual parcels for specific economic development projects located within the existing Zones and will be evaluated on the basis of the criteria identified in this policy. REVIEW PROCESS Proposal Content: All proposals must demonstrate that the project cannot reasonably be facilitated in the existing Renaissance Zone time frame. They must identify the parcels being proposed for extension of the Zone, the amount of real and personal property tax currently assessed to the site(s), and verify that the property meets at least three of the threshold criteria. Also, proposals should describe the type of use, amount of investment, jobs to be created, and other pertinent information about the project. A pro forma showing the difference in return on investment with and without Renaissance Zone savings must be submitted with the proposal. The applicant will supply a statement of Renaissance Zone outcomes achieved since inclusion of the property in the zone, which include the number of years that the property has been in the Zone, the total investment in the property and building, the investment in personal property, the employment at the start of the Zone and the current employment at the site. The applicant will provide an estimate of the tax savings, to date, from the Renaissance Zone designation. Applicants must pay a $5000 application fee and agree to pay all legal fees associated with the preparation of a Development Agreement. Review: A proposal must meet a minimum of three of the threshold requirements that will be reviewed by City Staff based on the extent to which the project addresses the evaluating factors cited in this policy. A review of the capacity, if any, below the modified (see next paragraph) $500,000 cap of property and income tax revenue the City may forego to support the Renaissance Zone program will be made as each application is reviewed. INVESTMENT CAP LIMITATION • The original City Renaissance Zone established an investment cap in 1999 at $50,000, focusing solely on lost City tax revenue. • This revised policy maintains the $50,000 cap, but will evaluate projects on a case-by-case basis to determine whether the project is cap neutral, adds cap capacity or reduces available cap capacity. • Cap Capacity will be determined by analyzing the annual value of income tax receipts from new jobs created within the City Renaissance Zones. The value will be used to calculate the available cap capacity as follows: $50,000 Base Cap Established 1999 ($8,200) Existing Cap Capacity Utilized $41,800 Existing Cap Capacity (before Income Tax Factor) $1,000 Total 1999 Job Value (from new jobs created in Ren. Zone) $42,800 Total Remaining Cap Capacity Where: Base Cap = The Cap of $50,000 established by City Commission in 1999 Utilized Cap Value = The estimated amount of actual property and income tax abated as of January 1999 Existing Cap Capacity = The difference between the Base Cap and the Utilized Cap Value Job Value = The total number of jobs created by all projects in the City's Renaissance Zone multiplied by an estimated income tax value of $300 per job Remaining Cap Capacity = Amount of City public revenue remaining to be invested in Renaissance Program • A project's cap capacity impact will be determined by calculating the difference between property tax loss and income tax to be generated by the proposal. Projects may be neutral, may add cap capacity or may reduce cap capacity. DEVELOPMENT AGREEMENT Successful applicants will be required to enter into a development agreement with the City committing to the investment and/or job creation it has proposed and posting a performance bond or other guarantee of performance acceptable to the City. The City Commission will make a determination as to the number years each new or expanded area will be designated as a zone on a case-by-case basis and in compliance with State law. In no case will the designation be for more than fifteen years from the date of application to the Board of the Michigan Strategic Fund. THRESHOLD CRITERIA Must meet "a" or "b" of the following criteria plus two others to be considered for a Renaissance Zone Extension. a. Project will be a catalyst for a major development or for multiple redevelopment opportunities in the City. b. Project will add significant new City income tax from the creation of jobs new to Muskegon within three years of project completion. This income tax is to offset the loss of property taxes which are abated under the Renaissance Zone expansion. c. Property has been vacant or fifty percent of building(s) unoccupied, for at least one year. d. Project investment will be significant on a square foot basis. e. Property is a contaminated site or functionally obsolete, as defined by current Michigan law. f. Project shows other evidence of under-utilization or disinvestment. EVALUATION FACTORS Proposals for extending existing Zone areas which meet the appropriate threshold criteria will be considered based on the extent to which a project addresses the following evaluation factors: a. The amount of income tax to be generated by new jobs relative to the amount of local City taxes abated. b. The amount of investment in buildings and equipment. c. The project allows a business to expand in the City, retains a significant number of jobs in the City, and/or will add jobs. d. The project includes other investment in neighborhood revitalization or public infrastructure improvements or utilizes other public and private financing tools to maximize redevelopment benefits. e. In the case of residential property, the extent to which the project will work to deconcentrate poverty, create mixed use redevelopment or develop downtown housing. f. The amount of tax loss for the project does not exceed the amount the City Commission identifies for support of Renaissance Zones. g. The extent to which designation may adversely affect DOA or other City financial obligations. h. The project will enhance an area of the City and/or cause additional investment. 1. The project is consistent with the City's Master Plan. J. Compliance with the following City ordinances and policies: 1. All applicants must be current with all real and personal property taxes. 2. All applicants must not be under written orders for violations of the zoning ordinance. 3. All applicants must have a satisfactory record of compliance with regulations enforced by the City's Environmental Services Department. k. History of investment. What is the history of ownership of and investment in the property since it was designated as a Renaissance Zone? What are the reasons that the property is still blighted and underutilized? OTHER CONDITIONS The City reserves the right to not award Renaissance Zone status to any or all proposals, nor is it obligated to abate taxes to the limit of capacity available. It may also decide to exceed the cap, if it believes the benefits of a project to the City warrant doing so. Applications must be filed by October 15, 2011, in order that they can be filed with the State by December 31, 2011. New Renaissance Zone designations are subject to approval by the Michigan Economic Development Corporation. Adopted July 24, 2007 ~-N~~¼, 2z~~~ Ann Marie Becker, MMC City Clerk City of Muskegon Treasurer's Office Memorandum To: Mayor and City Commissioners From: City Treasurer Date: November 28, 2007 Re: Summer Property Tax Collections Public Act 331, of 1993, the State Education Tax Act, as amended by Public Act 244 of 2002, required cities and townships to collect the State Education Tax in a summer levy, except as otherwise provided by law. Cities were required to collect the State Education Tax (SET) in a summer levy unless, before November 1, 2002, the legislative body adopted a resolution declining to collect the tax. A copy of the resolution had to be sent before November 1, 2002 by the city to the state treasurer and the local county treasurer. This was the case with the city of Muskegon. At that time, we analyzed the potential revenue and associated costs of the city taking on the administrative burden of handling a summer property tax levy and concluded that there was no net benefit in the City's assuming that responsibility. Also at that time, it was city staff's opinion that the City should avoid being associated with the negative public reaction that may be generated by the summer SET tax collection. As we know, since that time, state legislation was enacted to eliminate state shared revenue from counties while moving county operating tax levied from the winter to the summer over a three year period. This past summer (2007) all of the county's operating millage was levied in the summer. The resulting effect for the city has been a further decline in property tax administration fees revenue which has gone to the county. While other county tax millages remain on the winter bill (county museum, quality of life, central dispatch, etc.), it may be possible for these items to be moved from the winter to the summer in the future as well. Further, each year brings an opportunity for the local public schools to explore the possibility of moving their tax levy from the winter to the summer. If this were to occur without the city rescinding it's resolution declining to collect the summer tax levy, it would result in an even more significant erosion of the city's property tax administration fees revenue. Under PA 244 of 2002, by January of each year the legislative body of a city that has declined to collect the summer tax levy may by resolution adopted by a majority of the legislative body rescind the earlier decision to decline to collect the tax. Given the city's current and projected budget situation and in light of the information that we currently have on hand, it is our recommendation that the city rescind its resolution declining to collect the summer tax levy. The 2008 fiscal year budget was prepared and adopted based upon the city taking over the summer tax levy from the county. City staff have met with and discussed this with the County Treasurer. The approved 2008 budget projected the additional revenue to the city that would be generated from tax administration fees by collecting the summer tax levy and the additional expenses that would be associated with the change. The overall projected net impact is a $22,000 increase to the fund balance of the general fund. Attached is a resolution for your approval to rescind the previous resolution that declined to collect the SET in a summer tax levy and begin collecting the taxes levied in the summer effective with the July 2008 taxes. Please feel free to contact me should you have any questions. • Page2 CITY OF MUSKEGON Resolution No. 2 OO7 -1 0 2 A Resolution to rescind a previous resolution that declined to collect the State Education Tax in a summer levy. RECITALS 1. That Public Act 331 of 1993, the State Education Tax Act, as amended by Public Act 244 of 2002, requires cities and townships to collect the State Education Tax in a summer levy, except as otherwise provided by law. 2. Cities are required to collect the State Education Tax in a summer levy unless, before November 1, 2002, the legislative body adopted a resolution declining to collect the tax. 3. On October 22, 2002, the City Commission of the City of Muskegon adopted Resolution No. 2002- l l 9(b), which declined to collect the State Education Tax in a summer levy beginning with the sunimer 2003 levy. 4. In accordance with Act 331 of 1993, as amended by Public Act 244 of 2002, the legislative body of a city or township that has declined to collect the State Education Tax in a summer levy may by resolution adopted by a majority of the legislative body rescind the earlier decision to decline to collect the tax. THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION: That the City of Muskegon rescinds Resolution No. 2002-l 19(b) which declined to collect the State Education Tax in a summer levy and herby elects to begin collection of the State Education Tax in a summer levy beginning with the summer 2008 levy. This resolution passed. Ayes Spataro, Warmington, Wisneski, Gawron, and Shepherd. Nays None. CITY OF MUSKEGON By\ \ \"-,~Y\~0u (b~Jh Ann Marie Becker, MMC, City Clerk CERTIFICATE This resolution was adopted at a meeting of the City Commission, held on December 11 , 2007 . The meeting was properly held and noticed pursuant to the Open meetings Act of the State of M ichigan, Act 267 of the Public Acts of 1976. ~ FMUSKEGON By~ '\~~---C~J'>v~~~rcJ~ Ann Marie Becker, MMC, City Clerk U:\TREASURERISMITH\WORD\Commissn\RDCSET
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