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CITY OF MUSKEGON CITY COMMISSION MEETING OCTOBER 26, 2010 CITY COMMISSION CHAMBERS @ 5:30 P.M. AGENDA CALL TO ORDER: PRAYER: PLEDGE OF ALLEGIANCE: ROLL CALL: HONORS AND AWARDS: INTRODUCTIONS/PRESENTATION: CONSENT AGENDA: A. Approval of Minutes. CITY CLERK B. Liquor License Request – Michigan Commerce Bank. CITY CLERK C. Amendments to the Zoning Ordinance – Modify Parking Restrictions. PLANNING & ECONOMIC DEVELOPMENT D. Donation Program for 2010 Individual Income Tax Returns. INCOME TAX E. DDA Bond Refunding. FINANCE F. City – MDOT Agreement for Traffic Signals Upgrade to Box Span Along Laketon at Hoyt, Getty and Roberts. ENGINEERING PUBLIC HEARINGS: COMMUNICATIONS: CITY MANAGER’S REPORT: UNFINISHED BUSINESS: NEW BUSINESS: A. eTax Withholding Software. INCOME TAX B. 2010 National League of Cities Membership Dues. CITY CLERK C. Concurrence with the Housing Board of Appeals Notice and Order to Demolish the Following: PUBLIC SAFETY 753 Oak Avenue 1554 Pine Street (Area 11) ANY OTHER BUSINESS: PUBLIC PARTICIPATION: Reminder: Individuals who would like to address the City Commission shall do the following: Fill out a request to speak form attached to the agenda or located in the back of the room. Submit the form to the City Clerk. Be recognized by the Chair. Step forward to the microphone. State name and address. Limit of 3 minutes to address the Commission. (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.) CLOSED SESSION: ADJOURNMENT: ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann Marie Becker, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or TDD: (231) 724-4172. Date: October 26, 2010 To: Honorable Mayor and City Commissioners From: Ann Marie Becker, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve minutes for the October 11th Commission Worksession Meeting and the October 12th City Commission Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. City of Muskegon City Commission Worksession October 11, 2010 City Commission Chambers 5:30 PM MINUTES 2010-86 Present: Commissioners Warmington, Vice Mayor Gawron, Carter, Spataro, Wierengo, Shepherd (arrived 5:33 p.m.), and Wisneski. Absent: None. Sewer Back-Up Claim. On July 7, 2010 the business at 1190 Apple Avenue owned by Lawrence Baker experienced a sewer backup. It was determined the City sewer main was backed-up with grease causing the back-up at the Apple address. The MMRMA has reached an agreement with the property owner for clean-up and lost contents at $11,000. This settlement must be approved by the City Commission because of the dollar amount. Motion by Commissioner Carter, second by Commissioner Wierengo to authorize the sewer back-up claim for 1190 Apple Avenue in the amount of $11,000. ROLL CALL VOTE: Ayes: Gawron, Spataro, Warmington, Wierengo, Wisneski, and Carter. Nays: None. Abstain: Shepherd. MOTION PASSES Wastewater Presentation. Scott Huebler and Jerry Bartoszek made a presentation of the proposed Wastewater contract. It is a twenty year agreement. The City Commission will consider the contract at a future Commission meeting. Harbor Towne Streets. Representatives of Harbor Towne provided a power point presentation of streets needing repair within the site. They are asking the City Commission for some type of support in making the needed repairs. The City Commission listened to the concerns and will take it under advisement. East Muskegon Little League Request. The East Muskegon Little would like to build a physically disabled accessible wheelchair friendly, t-ball diamond on the north east corner of Sheldon Park. This would require the removal of approximately twenty-five trees. The Commission stated its approval of the project but recommended that the group speak to neighborhood association for their opinion as well. Any Other Business Emergency Sewer Line Replacement Approximately fifteen to twenty feet of sewer line at Wood and Dale need emergency repair. Bids were solicited and McCormick was the lowest responsible bidder with a bid of $33,700. Motion by Commissioner Spataro, seconded by Commissioner Carter to approve the bid from McCormick in the amount of $33,700 for the emergency sewer repair at Wood and Dale. MOTION PASSES Adjournment. Motion by Commissioner Carter, seconded by Commissioner Shepherd to adjourn at 6:45 p.m. MOTION PASSES ________________________ Ann Marie Becker, MMC City Clerk CITY OF MUSKEGON CITY COMMISSION MEETING OCTOBER 12, 2010 CITY COMMISSION CHAMBERS @ 5:30 P.M. 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, October 12, 2010. Mayor Warmington opened the meeting with a prayer from Pastor Tim Cross from the Living Word Church after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL FOR THE REGULAR COMMISSION MEETING: Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron, Commissioners Steve Wisneski, Chris Carter, Clara Shepherd, Lawrence Spataro, and Sue Wierengo, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk Ann Marie Becker. 2010-87 CONSENT AGENDA: A. Approval of Minutes. CITY CLERK SUMMARY OF REQUEST: To approve the minutes of the City Commission Meeting that was held on Tuesday, September 28, 2010. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. B. Homeless Continuum of Care Network and City of Muskegon – Memorandum of Understanding (MOU) and Appointment of City Commission Representative. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: The City of Muskegon has had a voting seat on the Homeless Continuum of Care Network Review Committee for several years. The current MOU is outdated. In order to retain the City seat on the Review Committee, a new MOU must be approved. Commissioner Larry Spataro has served as the City representative in the past. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the MOU and authorize the Mayor’s signature and appoint Commissioner Spataro as the City of Muskegon representative to the Review Committee. C. CDBG Program Administration Agreement – City of Muskegon/City of Norton Shores. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: The City of Muskegon has contracted with the City of Norton Shores to administer their Community Development Block Grant (CDBG) program since 2006. The Agreement to administer the program was renewed in 2008 and extended to June 30, 2009. However, although the City of Muskegon has continued to administer the Norton Shores CDBG program, the Agreement has not been renewed since that time. Therefore, the Agreement is effective July 1, 2009, and extends through June 30, 2011. FINANCIAL IMPACT: The City of Norton Shores pays $22,000 a year to the City of Muskegon to administer their CDBG program. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the Agreement and authorize the Mayor and City Clerk to sign. D. West Michigan Metropolitan Transportation Plan (WestPlan) Dues, FY 2011. CITY MANAGER SUMMARY OF REQUEST: To approve remittance of the City of Muskegon’s portion of the WestPlan dues for Fiscal Year 2011, payable to West Michigan Shoreline Regional Development Commission. This agency determines projects and distributes federal transportation funds. FINANCIAL IMPACT: $16,040. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve this request. E. Amend Article III of Chapter 74 of the City’s Code of Ordinance. ENGINEERING SUMMARY OF REQUEST: Adopt the proposed amendments to Sections 74-84, 85, and 86 of Chapter 74, Article III of the City’s Code of Ordinances providing one more option to enforce the repairs and collection of hazardous sidewalks by billing the owner(s) without creating a special assessment district. This proposed alternative, as outlined in Section 74-86, will help the City deal with hazardous sidewalks after issuing a notice to the owner and subsequently make the repairs, thus preventing costly claims. FINANCIAL IMPACT: None at this time since the assumption is that the owner of record will be billed for the actual cost. However, the possibility is there that the owner(s) may default. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the proposed amendments to articles 74-84, 85, and 86 of Chapter 74 of the City’s Code of Ordinance. F. Budgeted Vehicle Replacement – Chevrolet Impalas. PUBLIC WORKS SUMMARY OF REQUEST: Approval to purchase two 2011 Chevrolet Impalas from Don Rypma Chevrolet. FINANCIAL IMPACT: $36,920. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approve the purchase. G. Budgeted Equipment Setup. PUBLIC WORKS SUMMARY OF REQUEST: Authorize staff to purchase five service bodies from Arista Truck Systems and one plow from Hoekstra Equipment. FINANCIAL IMPACT: $30,920. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approve the purchases. H. Merit Network Inc. – METRO Act Permit. ENGINEERING SUMMARY OF REQUEST: Approve the permit from Merit Network to install aerial fiber optic facilities within the City’s right of way and authorize the Mayor and Clerk to sign said permit. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approve the permit and sign document. I. Removal of Zoning Board of Appeals Member and Appointments to Various Boards. CITY CLERK SUMMARY OF REQUEST: To remove Eleanor Fife from the Zoning Board of Appeals, appoint John Derbin to the Board of Review, and appoint Tammy Halterman to the Zoning Board of Appeals. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval. COMMITTEE RECOMMENDATION: The Community Relations Committee recommended approval at their October 11th meeting. Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve the Consent Agenda as read. ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo, and Wisneski Nays: None MOTION PASSES 2010-88 NEW BUSINESS: A. Richards Park License and Management Agreement. PUBLIC WORKS SUMMARY OF REQUEST: To approve an agreement with the Muskegon Conservation District to locate their main office on a portion of the Richards Park property. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the agreement and to authorize the Mayor and Clerk to sign the agreement. Motion by Commissioner Spataro, second by Commissioner Shepherd to approve the Richards Park License and Management Agreement. ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Wisneski, and Carter Nays: None MOTION PASSES B. Consideration of 2011 COLA for Retirees. FINANCE SUMMARY OF REQUEST: It is time to consider whether an annual cost of living adjustment (COLA) should be awarded to City retirees. Under the City’s COLA program, permanent cost of living increases are made to pensioners retired five years or more. COLA payments are capped at 75% of the CPI and are payable only when investment performance exceeds estimates and the COLA is deemed affordable. The last COLA was in 2009, when a 0.50% COLA was granted. The collapse of the financial markets in late 2008 continues to take a big toll on the City’s pension funds as noted in the most recent actuarial valuation: “If the December 31, 2009 valuation results were based on market value on that date instead of 10-year smoothed funding value: i) the funded percent of your entire municipality would be 79% (instead of 99%); and ii) your total employer contribution requirement for the fiscal year starting July 1, 2011 would be $4,165,166 (instead of $1,152,252). If the investment markets do not fully make up for the 2008 losses, employer contribution requirements can be expected to rise. MERS continues to do everything it can to make sure that if this proves to be the case, the increases are incremental as opposed to steep.” Given the unprecedented economic and investment environment we are in and the severe market losses suffered by the City’s pension funds, staff recommends no retiree COLA be awarded for the year beginning January 1, 2011. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: Commission action affirming staff’s recommendation that no COLA increase be granted to City retirees in 2011. Motion by Vice Mayor Gawron, second by Commissioner Carter to affirm staff’s recommendation that no COLA increase be granted to City retirees in 2011. ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter, and Gawron Nays: None MOTION PASSES PUBLIC PARTICIPATION: Public comments were received. ADJOURNMENT: The City Commission Meeting adjourned at 6:07 p.m. Respectfully submitted, Ann Marie Becker, MMC City Clerk Date: October 26, 2010 To: Honorable Mayor and City Commissioners From: Ann Marie Becker, City Clerk RE: Liquor License Request Michigan Commerce Bank SUMMARY OF REQUEST: The Liquor Control Commission is seeking local recommendation on a request to transfer all rights to renewal of an escrowed 2009 Class C Licensed Business with Dance-Entertainment Permit, located at 677 W. Laketon, Muskegon, from Cuti’s Sports Bar and Grill, Inc. to Michigan Commerce Bank, with licenses to be held in Escrow. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: All departments are recommending approval. Date: October 26, 2010 To: Honorable Mayor and City Commissioners From: Finance Director RE: DDA Bond Refunding SUMMARY OF REQUEST: Historically low interest rates make it possible to refund the remaining bonds outstanding from the 1990 Mall redevelopment effort. The original bonds were restructured and refunded in 2001 at significant savings to the DDA/City. Because the City pledges it limited full faith and credit taxing power to repayment of the bonds, both the City and the DDA must take action. Interest rates are very favorable and a recent analysis shows that these bonds can be refunded a second time with projected present value savings of $102,858 (after issuance costs). This equates to 5.13% of the outstanding principal. A general rule of thumb is that PV savings should equal at least 2% of bond principal in order to proceed with a refunding. FINANCIAL IMPACT: Present value savings of $102,858 (after issuance costs). Attached is a formal analysis of the proposed bond refunding. BUDGET ACTION REQUIRED: None at this time. Interest savings will be reflected in future years’ DDA budgets. STAFF RECOMMENDATION: Adoption of the attached bond authorizing resolution. COMMITTEE RECOMMENDATION: None. 1 City of Muskegon, Michigan 2010 Downtown Development Refunding Bonds (GOLT) Dated: December 22, 2010 Refunding of 2001 DDA Bonds Debt Service Comparison Part 1 of 2 Date Total P+I Existing D/S Net New D/S Old Net D/S Savings Fiscal Total 12/22/2010 ‐ ‐ ‐ ‐ ‐ ‐ 06/01/2011 58,781.88 245,220.00 304,001.88 293,038.75 (10,963.13) ‐ 12/01/2011 21,042.50 ‐ 21,042.50 47,818.75 26,776.25 ‐ 12/31/2011 ‐ ‐ ‐ ‐ ‐ 15,813.12 06/01/2012 301,042.50 ‐ 301,042.50 292,818.75 (8,223.75) ‐ 12/01/2012 19,292.50 ‐ 19,292.50 42,367.50 23,075.00 ‐ 12/31/2012 ‐ ‐ ‐ ‐ ‐ 14,851.25 06/01/2013 309,292.50 ‐ 309,292.50 302,367.50 (6,925.00) ‐ 12/01/2013 17,190.00 ‐ 17,190.00 36,452.50 19,262.50 ‐ 12/31/2013 ‐ ‐ ‐ ‐ ‐ 12,337.50 06/01/2014 307,190.00 ‐ 307,190.00 306,452.50 (737.50) ‐ 12/01/2014 14,725.00 ‐ 14,725.00 30,175.00 15,450.00 ‐ 12/31/2014 ‐ ‐ ‐ ‐ ‐ 14,712.50 06/01/2015 309,725.00 ‐ 309,725.00 310,175.00 450.00 ‐ 12/01/2015 11,775.00 ‐ 11,775.00 23,525.00 11,750.00 ‐ 12/31/2015 ‐ ‐ ‐ ‐ ‐ 12,200.00 06/01/2016 316,775.00 ‐ 316,775.00 323,525.00 6,750.00 ‐ 12/01/2016 8,343.75 ‐ 8,343.75 16,250.00 7,906.25 ‐ 12/31/2016 ‐ ‐ ‐ ‐ ‐ 14,656.25 06/01/2017 318,343.75 ‐ 318,343.75 331,250.00 12,906.25 ‐ 12/01/2017 4,468.75 ‐ 4,468.75 8,375.00 3,906.25 ‐ 12/31/2017 ‐ ‐ ‐ ‐ ‐ 16,812.50 06/01/2018 329,468.75 ‐ 329,468.75 343,375.00 13,906.25 ‐ 12/31/2018 ‐ ‐ ‐ ‐ ‐ 13,906.25 Total $2,347,456.88 $245,220.00 $2,592,676.88 $2,707,966.25 $115,289.37 ‐ 10/19/2010 | 1:54 PM Robert W. Baird & Co. Traverse City Public Finance Page 7 City of Muskegon, Michigan 2010 Downtown Development Refunding Bonds (GOLT) Dated: December 22, 2010 Refunding of 2001 DDA Bonds Debt Service Comparison Part 2 of 2 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings....................................................................................................................... 100,598.29 Net PV Cashflow Savings @ 3.158%(AIC)..................................................................................................... . 100,598.29 Contingency or Rounding Amount................................................................................................................ . 2,259.31 Net Present Value Benefit.............................................................................................................................. $102,857.60 Net PV Benefit / $2,005,000 Refunded Principal.......................................................................................... 5.130% Net PV Benefit / $2,135,000 Refunding Principal......................................................................................... 4.818% Refunding Bond Information Refunding Dated Date.................................................................................................................................... 12/22/2010 Refunding Delivery Date................................................................................................................................ 12/22/2010 10/19/2010 | 1:54 PM Robert W. Baird & Co. Traverse City Public Finance Page 8 City of Muskegon County of Muskegon, State of Michigan RESOLUTION AUTHORIZING 2010 DOWNTOWN DEVELOPMENT REFUNDING BONDS (LIMITED TAX GENERAL OBLIGATION) Minutes of a regular meeting of the City Council of the City of Muskegon, County of Muskegon, Michigan, held in the City Hall, on the 26th day of October, 2010 at 5:30 o'clock p.m., Eastern Daylight Time. PRESENT: Members: ABSENT: Members: The following preamble and resolution were offered by Member ______________________ and MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. supported by Member _____________________. WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the "City"), pursuant to the provisions of Act 197, Public Acts of Michigan, 1975, as amended ("Act 197"), has previously issued its 2001 Downtown Development Refunding Bonds (General Obligation Limited Tax), dated September 1, 2001 (the "Prior Bonds"); and WHEREAS, the Prior Bonds were issued in anticipation of the collection of certain tax increment revenues (the "Tax Increment Revenues") from the Downtown Development Authority of the City of Muskegon (the "DDA") for the purpose of paying the costs of refunding the DDA’s 1989 Downtown Development Limited Obligation Tax Increment Bonds, Series A-1 and Series D-1; and WHEREAS, the City and DDA have been advised that it may be able to accomplish a net savings of debt service costs by refunding all or a portion of the outstanding Prior Bonds through the issuance of the City's 2010 Downtown Development Refunding Bonds (Limited Tax General Obligation) (the "Refunding Bonds"); and WHEREAS, the DDA has requested the City to issue the Refunding Bonds to achieve debt service savings and the DDA has pledged its tax increment revenues for payment of the Refunding Bonds; and WHEREAS, the City has received a proposal from Robert W. Baird & Co. Incorporated (the "Underwriter") to purchase the Bonds pursuant to a negotiated sale. NOW, THEREFORE, BE IT RESOLVED THAT: 1. Authorization of Bonds; Bond Details. Bonds of the City shall be issued in the aggregate principal amount of not to exceed Two Million Three Hundred Thousand Dollars ($2,300,000), as finally determined upon sale thereof, to be designated 2010 DOWNTOWN DEVELOPMENT REFUNDING BONDS (LIMITED TAX GENERAL OBLIGATION) (the "Bonds"), for the purpose of paying the cost of refunding all or a portion of the Prior Bonds and issuance costs of the Bonds. The Bonds shall consist of bonds registered as to principal and interest of the denomination of $5,000 or multiples of $5,000 not exceeding for each maturity the aggregate principal amount of such maturity, dated as of December 1, 2010, or such other date as determined by the City Manager, City Clerk, City Treasurer and Finance Director (the "Authorized Officers"), numbered as determined by the Transfer Agent (hereinafter defined), and maturing or subject to mandatory redemption on June 1st in the years 2011 to 2018, inclusive, or such other dates and/or years as shall be determined at the time of sale and in the amounts as determined by the Authorized Officers. The Bonds shall bear interest at a rate or rates to be determined at the time of sale thereof, but in any event not exceeding 6% per annum, payable on June 1, 2011, and semi-annually thereafter on December 1st and June 1st of each year, or such other first and subsequent interest payment dates as determined by the Authorized Officers. Interest on the Bonds shall be payable by a bank or trust company qualified to act as bond registrar, paying agent and transfer agent for the Bonds and appointed by the Authorized Officers as transfer agent for the Bonds (the "Transfer Agent"), mailed to the registered owner of record at the registered address, as shown on the registration books of the City maintained by the Transfer Agent as of the fifteenth day of the month prior to the payment date for each interest payment. The date of determination of registered owner for purposes of payment of interest as provided in this paragraph may be changed by the City to conform to market practice in the future. The principal of the Bonds shall be payable at the MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. Transfer Agent upon presentation and surrender of the appropriate Bond. The Bonds shall be sold at a price not less than 98.0% of their par value. The Underwriter’s discount shall not exceed 1.25% of the principal amount of the Bonds. The Bonds shall not be subject to optional redemption prior to maturity. The Bonds shall be issued in book entry only form through the Depository Trust Company in New York, New York ("DTC") and the Authorized Officers are authorized to execute such custodial or other agreements with DTC as may be necessary to accomplish the issuance of the Bonds in book entry only form and to make such change in the Bond Form within the parameters of this Resolution as may be required to accomplish the foregoing. Unless waived by any registered owner of Bonds to be redeemed, official notice of redemption shall be given by the Transfer Agent on behalf of the City. Such notice shall be dated and shall contain at a minimum the following information: original issue date; maturity dates; interest rates; CUSIP numbers, if any; certificate numbers (and in the case of partial redemption) the called amounts of each certificate; the redemption date; the redemption price or premium; the place where Bonds called for redemption are to be surrendered for payment; and that interest on Bonds or portions thereof called for redemption shall cease to accrue from and after the redemption date. In addition, further notice shall be given by the Transfer Agent in such manner as may be required or suggested by regulations or market practice at the applicable time, but no defect in such further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as prescribed herein. 2. Execution of Bonds. The Bonds shall be signed by the facsimile signatures of the Mayor and the City Clerk of the City and shall have the facsimile seal of the City printed on the Bonds. No Bond shall be valid until authenticated by an authorized representative of the Transfer Agent. The Bonds shall be delivered to the Transfer Agent for authentication and be delivered by it to the purchaser -2- in accordance with instructions from the City Treasurer of the City upon payment of the purchase price for the Bonds in accordance with the bid therefor when accepted. Executed blank certificates for registration and issuance to transferees shall simultaneously, and from time to time thereafter as necessary, be delivered to the Transfer Agent for safekeeping. 3. Security for Bonds; Defeasance. The Bonds shall be issued in anticipation of and payable in the first instance from payments required to be made by the DDA of Tax Increment Revenues pursuant to the Downtown Development Plan and Tax Increment Finance Plan ("Tax Increment Revenue Payments"), which Tax Increment Revenue Payments are anticipated to be in amounts sufficient to pay principal of and interest on the Bonds and which are hereby pledged to the payment of the Bonds. In addition, the City hereby pledges its full faith and credit for the prompt payment of the Bonds. Should the Tax Increment Revenue Payments at any time be insufficient to pay principal of and interest on the Bonds as the same become due, then the City shall advance as a first budget obligation from any funds legally available therefor, or, if necessary, levy taxes upon all taxable property in the City subject to applicable constitutional, statutory and charter tax rate limitations, such sums as may be necessary to pay said principal and interest. The City shall be reimbursed for any such advance by the DDA from Tax Increment Revenues. The City Treasurer is authorized and directed to open a separate fund with a bank or trust company designated by the City Council to be known as the 2010 DOWNTOWN DEVELOPMENT REFUNDING BONDS DEBT RETIREMENT FUND (the "Debt MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. Retirement Fund"), the moneys to be deposited into the Debt Retirement Fund to be specifically earmarked and used solely for the purpose of paying principal of and interest on the Bonds as they mature. Into said fund there shall be placed the accrued interest, if any, received at the time of delivery of the Bonds. In addition, there shall be paid into said fund the Tax Increment Revenue Payments as received from the DDA each year until the amount on hand in the Debt Retirement Fund, together with any amounts on hand in the Debt Retirement Fund available for payment of current principal and interest on the Bonds, is equal to all payments of principal and interest coming due on the Bonds prior to the next collection of taxes. The City reserves the right to issue additional bonds of equal standing and priority of lien with the Bonds as to the Tax Increment Revenues, subject to the limitations of Act 197. In the event cash or direct obligations of the United States or obligations the principal of and interest on which are guaranteed by the United States, or a combination thereof, the principal of and interest on which, without reinvestment, come due at times and in amounts sufficient to pay the principal of and interest on the Bonds when due, shall be deposited in trust, this Resolution shall be defeased and the owners of the Bonds shall have no further rights under this Resolution except to receive payment of the principal of and interest on the Bonds from the cash or securities deposited in trust and the interest and gains thereon and to transfer and exchange Bonds as provided herein. 4. Escrow Account; Escrow Agreement. There is hereby established with the Escrow Agent (hereinafter defined) a fund to be designated as CITY OF MUSKEGON 2010 ESCROW ACCOUNT (the "Escrow Account"). The Authorized Officers are authorized to appoint a bank or trust company qualified to act as escrow agent for the Escrow Account (the "Escrow Agent"). Certain of the proceeds of the Bonds and, if deemed necessary or advisable by the City, moneys on hand in the Debt Retirement Fund for the Prior Bonds, as set forth in the Sale Order, shall be deposited in the Escrow Account consisting of cash and investments in direct obligations of or obligations of the principal of and interest on which are unconditionally guaranteed by the United States of America or other obligations the principal of and interest on which are fully secured by the foregoing not redeemable at the option of the -3- City in amounts fully sufficient to pay the principal of and interest on the Prior Bonds to be refunded as set forth in the Sale Order (the "Refunded Bonds"). The Escrow Account shall be held by the Escrow Agent pursuant to an escrow agreement (the "Escrow Agreement") which shall irrevocably direct the Escrow Agent to take all necessary steps to pay the principal of and interest on the Refunded Bonds when due and upon redemption. The amounts held in the Escrow Account shall be such that the cash and investments and income received thereon will be sufficient without reinvestment to pay the principal of and interest on the Refunded Bonds when due and upon redemption as required by the Sale Order. Any proceeds of the Bonds in excess of the proceeds deposited in the Escrow Account or required to pay costs of issuance shall be used for any lawful purpose as specified in the Sale Order. The Authorized Officers are authorized negotiate the terms of and execute and deliver the Escrow Agreement on behalf of the City. 5. Bond Form. The Bonds shall be in substantially the following form with such changes as may be required to conform to the final terms of the Bonds established by the Sale Order: MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. -4- UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF MUSKEGON CITY OF MUSKEGON 2010 DOWNTOWN DEVELOPMENT REFUNDING BOND (LIMITED TAX GENERAL OBLIGATION) Date of Interest Rate Maturity Date Original Issue CUSIP June 1, 20__ _________, 2010 Registered Owner: Principal Amount: Dollars MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. The City of Muskegon, County of Muskegon, State of Michigan (the "City"), acknowledges itself to owe and for value received hereby promises to pay to the Registered Owner specified above, or registered assigns, the Principal Amount specified above, in lawful money of the United States of America, on the Maturity Date specified above, unless prepaid prior thereto as hereinafter provided, with interest thereon (computed on the basis of a 360 day year consisting of twelve 30-day months) from the Date of Original Issue specified above or such later date to which interest has been paid, at the Interest Rate per annum specified above, payable on June 1, 2011 and semiannually thereafter. Principal of this bond is payable upon presentation and surrender of this bond at the corporate trust office of ________________________________________, ____________, Michigan, or such other transfer agent as the City may hereafter designate (the "Transfer Agent") by notice mailed to the registered owner not less than sixty (60) days prior to an interest payment date. Interest on this bond is payable to the person or entity which is the registered owner of record as of the 15th day of the month preceding the interest payment date as shown on the registration books of the City kept by the Transfer Agent, by check or draft mailed by the Transfer Agent to the registered owner of record at the registered address. Principal of and interest on this bond are payable in the first instance from Tax Increment Revenues (as defined by law) to be received by the City from the Downtown Development Authority of the City of Muskegon (the “Authority”). In addition, for prompt payment of this bond, both principal and interest, the full faith, credit and resources of the City are hereby irrevocably pledged. In case of insufficiency of the Tax Increment Revenues received by the Authority for the payment of the principal of and interest on this bond, the City is obligated to pay the same as a first budget obligation from its general funds or from any taxes which it may levy, subject to applicable constitutional, statutory and charter tax rate limitations. This bond is one of a series of bonds aggregating the principal sum of $_________, issued pursuant to Act 197, Public Acts of Michigan, 1975, as amended, Act 34, Public Acts of Michigan, 2001, as amended, and a resolution duly adopted by the City Council of the City for the purpose of paying all or part of the cost of refunding a prior bond issue of the City. The City and the Authority have reserved the right to issue additional bonds payable from Tax Increment Revenues to the extent permitted by law. Bonds of this issue are not subject to redemption prior to maturity. -5- This bond is transferable only upon the registration books of the City kept by the Transfer Agent by the registered owner of record in person, or by the registered owner's attorney duly authorized in writing. Upon the surrender of this bond together with a written instrument of transfer satisfactory to the Transfer Agent duly executed by the registered owner or the registered owner's attorney duly authorized in writing and upon the payment of the charges, if any, prescribed in the resolution authorizing this bond, a new registered bond or bonds in the same aggregate principal amount and of the same maturity shall be issued to the transferee in exchange therefor as provided in the resolution authorizing this bond. Neither the City nor the Transfer Agent shall be required to transfer or exchange this bond or portion of this bond either during the period of fifteen (15) days immediately preceding the date of the mailing of any notice of redemption or (except as to the unredeemed portion, if any, of this bond) after this bond or any portion of this bond has been selected for redemption. It is hereby certified and recited that all acts, conditions and things required by law to be done, precedent to and in the issuance of this bond and the series of bonds of which this is one, exist and have been done and performed in regular and due form and time as required by law, and that the total indebtedness of the City, including this bond and the series of bonds of which this is one, does not exceed any constitutional, statutory or charter debt limitation. This bond is not valid or obligatory for any purpose until the Transfer Agent's Certificate of Authentication on this bond has been executed by the Transfer Agent. IN WITNESS WHEREOF, the City of Muskegon, County of Muskegon, State of Michigan, by its City MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. Council, has caused this bond to be signed in the name of the City by the facsimile signatures of its Mayor and Clerk and a facsimile of its corporate seal to be printed hereon, all as of the Date of Original Issue. City of Muskegon County of Muskegon State of Michigan By: Mayor (SEAL) Countersigned By: City Clerk -6- [FORM OF TRANSFER AGENT'S CERTIFICATE OF AUTHENTICATION] Date of Registration: Certificate of Authentication This bond is one of the bonds described in the within-mentioned resolution. ___________________________________, ____________, Michigan Transfer Agent By: MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. Authorized Signature -7- 6. Negotiated Sale. The City Council has considered the option of selling the Bonds through a competitive sale and a negotiated sale, and, pursuant to the requirements of Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”), hereby determines that a negotiated sale of the Bonds to the Underwriter will result in the most efficient and expeditious means of selling the Bonds and will result in the lowest interest cost to the City and hereby approves the Underwriter as the purchaser of the bonds. 7. Bond Purchase Agreement; Delegation to Authorized Officer; Sale Order. The Authorized Officers are each hereby authorized to negotiate the sale of the Bonds with the Underwriter, negotiate and execute a Bond Purchase Agreement, execute a Sale Order specifying the final terms of the Bonds and take all other necessary actions required to effectuate the sale, issuance and delivery of the Bonds within the parameters authorized in this resolution. 8. Adjustment of Bond Terms. The Authorized Officers are each hereby authorized to adjust the final bond details as set forth herein to the extent necessary or convenient to complete the sale of the Bonds and in pursuance of the forgoing is each authorized to exercise the authority and make the determinations pursuant to Sections 315(1)(d) of Act 34, including but not limited to determinations regarding interest rates, prices, discounts, maturities, principal amounts, denominations, date of MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. issuance, interest payment dates, redemption rights and other matters within the parameters established by this resolution. 9. Tax Covenant; Qualified Tax Exempt Obligations. The City shall, to the extent permitted by law, take all actions within its control necessary to maintain the exclusion of the interest on each issue of the Bonds from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the "Code"), including, but not limited to, actions relating to any required rebate of arbitrage earnings and the expenditures and investment of Bond proceeds and moneys deemed to be Bond proceeds. The City hereby designates the Bonds as "qualified tax exempt obligations" for purposes of deduction of interest expense by financial institutions pursuant to the Code. 10. Continuing Disclosure Undertaking. The City covenants to enter into a continuing disclosure undertaking for the benefit of the holders and beneficial owners of the Bonds in accordance with the requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission, and the Authorized Officers are each hereby authorized to execute such undertaking prior to delivery of the Bonds. 11. Appointment of Bond Counsel. The appointment of the law firm of Miller, Canfield, Paddock and Stone, P.L.C. of Detroit, Michigan, as Bond Counsel for the Bonds is hereby confirmed, notwithstanding the periodic representation by Miller, Canfield, Paddock and Stone, P.L.C., in unrelated matters of the Underwriter and other parties and potential parties to the issuance of the Bonds. The fees and expenses of Miller, Canfield, Paddock and Stone, P.L.C., as Bond Counsel and other accumulated bond related fees and expenses shall be payable as a cost of issuance from proceeds of the Bonds or other available funds. 12. Authorization of Other Actions. The Authorized Officers are each authorized and directed to (a) approve the circulation of a preliminary official statement describing the Bonds and to deem the preliminary official statement "final" for purposes of Rule 15c2-12 of the SEC; (b) approve the circulation of a final official statement describing the Bonds and to execute the same on behalf of the -8- City; (c) solicit bids for and approve the purchase of a municipal bond insurance policy for the Bonds; and (d) do all other acts and take all other necessary procedures required to effectuate the sale, issuance and delivery of the Bonds. 13. Conflict; Recision. All resolutions and parts of resolutions insofar as they conflict with the provisions of this Resolution be and the same hereby are rescinded. RESOLUTION DECLARED ADOPTED. YEAS: NAYS: ABSTAIN: MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. City Clerk I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Council of the City of Muskegon, County of Muskegon, State of Michigan, at a regular meeting held on October 26, 2010, and that said meeting was conducted and public notice of said meeting was given pursuant to and in full compliance with the Open Meetings Act, being Act 267, Public Acts of 1976, and that the minutes of said meeting were kept and will be or have been made available as required by said Act. City Clerk 18,472,180.1\063684-00037 -9- Date: October 26, 2010 To: Honorable Mayor and City Commissioners From: Engineering RE: City – MDOT Agreement - traffic signals upgrade to Box Span along Laketon @ Hoyt, Getty & Roberts. SUMMARY OF REQUEST: To adopt the attached resolution and approve the contract with MDOT to upgrade four traffic signals along Laketon Ave. at Hoyt, Wood, Getty & Roberts and to authorize the mayor and clerk to sign said contract. The upgrade at the Wood street intersection consists of installing left turn movement detection. As for the other three intersections; convert the signals into Box Span which will make it easier for traffic to see and thus safer intersections. FINANCIAL IMPACT: The estimated cost of the project is $275,400 of which MDOT’s pays up to $215,200 toward participating items of work and the remaining is the City’s share. BUDGET ACTION REQUIRED: none. STAFF RECOMMENDATION: Approve the attached contract and resolution and authorizing the mayor & clerk to sign both. COMMITTEE RECOMMENDATION: RESOLUTION__________ RESOLUTION FOR APPROVAL OF A CONTRACT AGREEMENT BETWEEN THE MICHIGAN DEPARTMENT OF TRANSPORTATION AND THE CITY OF MUSKEGON FOR THE TRAFFIC SIGNAL UPGRADE ALONG LAKETON AVE. AT THE INTERSECTIONS OF HOYT, WOOD, GETTY & ROBERTS TOGETHER WITH OTHER NECESSARY RELATED WORK AND AUTHORIZATION FOR MAYOR STEPHEN J. WARMINGTON AND CITY CLERK ANN BECKER TO EXECUTE SAID CONTRACT Moved by_____________________________________and supported by Commissioner___________________________that the following Resolution be adopted: WHEREAS, entry by the City of Muskegon into Contract no. 10-5650 between the Michigan Department of Transportation and the City of Muskegon for the Traffic signal upgrade along Laketon Ave. at Hoyt, Wood, Getty & Roberts within the City is in the best interests of the City of Muskegon. RESOLVED, that entry by the City into Contract Agreement Number 10-5650 be and the same is hereby authorized and approved and the Mayor and Clerk are authorized to execute said contract for and on behalf of the City of Muskegon. Adopted this____________day of____________, 2010. BY Stephen J. Warmington, Mayor ATTEST Ann Becker, City Clerk CERTIFICATION This resolution was adopted at a meeting of the City Commission, held on ____________, 2010. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGON By___________________________ Ann Becker, City Clerk Date: October 26, 2010 To: Honorable Mayor and City Commissioners From: Ann Becker, City Clerk RE: 2010 National League of Cities Membership Dues SUMMARY OF REQUEST: The 2010 National League of Cities Membership Dues has been received. FINANCIAL IMPACT: $3,813. BUDGET ACTION REQUIRED: This has not been budgeted for. STAFF RECOMMENDATION: None. 10/14/2010 DATE: Honorable Mayor and Commissioners TO: Anthony Kleibecker, Director of Public Safety FROM: Concurrence with the Housing Board of Appeals Notice and Order RE: to Demolish. Dangerous Building Case #: EN100099 SUMMARY OF REQUEST: This is to request that the City Commission Concur with the findings of the Housing Board of Appeals that the structure located at 753 OAK AVE is unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days. It is further requested that administration be directed to obtain bids for the demolition of the structure and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder. Case# & Project Address: # EN100099 - 753 OAK AVE Location and ownership: This structure is located on Oak Ave. between Getty and Scott Streets and is owned by LEELABOO DEVELOPMENT LLC. Staff Correspondence: A dangerous building inspection was conducted on 06/10/10. The Notice and Order to Repair was issued on 06/25/10. On 08/05/10 the HBA declared the structure substandard and dangerous. Owner Contact: The Inspection Department had some phone contact with daughter of deceased owner who indicated the home was in foreclosure. The plumbing inspector responded to complaint of raw sewage dumped out of rear window on 07/22/09. Robin Wolcott- representing Deutsche Bank was present at the HBA meeting dated 08/05/10 where she indicated Safequard Properties tried to enter home to re-key was met by a gentleman with gun. Home was boarded up by City of Muskegon. The bank contacted Inspections to schedule interior inspection stating home had been cleaned. Inspectors could not enter to complete inspection dated 09/10/10 because of human feces still present throughout the home. Inspections Department received letter from LPS Asset Management stating property had been sold to new buyer. The new buyer Scott McDonald contacted Inspections stating he was unaware of dangerous building status when purchased from bank and wants to investigate options. Financial Impact: CDBG Funds Budget action required: None State Equalized value: $ (15,300) Entire property Estimated cost to repair: $5,000 (Exterior only) Staff Recommendation: To concur with the Housing Board of Appeals decision to demolish. SUMMARY FOR: 753 OAK AVE This is a wood frame, single family dwelling. The garage has been converted to living space without a permit or any inspections. The list of exterior items is short and the major repairs on the outside of the dwelling consist of a new roof, repairing windows and some broken steps. However the major cost to renovate this building is the inside. This building has human waste through out the house that permeates the entire building. It is unlikely that this house can be rehabilitated without removing all the wall and floor surfaces. The cost of interior repairs would most likely exceed the value of the structure. This building, in it’s current state, is not habitable and if left renovated will become a blighting influence on the neighborhood. CITY OF MUSKEGON 933 Terrace St., P.O. Box 537, Muskegon, MI 49443 (231) 724-6715 DANGEROUS BUILDING INSPECTION REPORT Thursday, June 10, 2010 Enforcement # EN100099 Property Address 753 OAK AVE Parcel #24-205-050-0002-00 Owner JOHNSON WILSON Inspector: Henry Faltinowski Date completed: 06/10/2010 DEFICENCIES: 1. Broken front steps. 2. Roof covering needs replaced. 3. Broken out windows. 4. Open soffit. 5. No permits for work on garage conversion. 6. Human waste throughout home. Request interior inspection by all trades, electrical, mechanical and plumbing. Please contact Inspection Services with any questions or to schedule an inspection at 933 Terrace St., Muskegon, MI 49440 (231) 724 6758. Based upon my recent inspection of the above property I determined that the structure meets the definition of a Dangerous Building and/or Substandard Building as set forth in Section 10-61 of the Muskegon City Code. _____________________________ _______________ Henry Faltinowski, Building Inspector Date 10/14/2010 DATE: Honorable Mayor and Commissioners TO: Anthony Kleibecker, Director of Public Safety FROM: Concurrence with the Housing Board of Appeals Notice and Order RE: to Demolish. Dangerous Building Case #: EN100108 SUMMARY OF REQUEST: This is to request that the City Commission Concur with the findings of the Housing Board of Appeals that the structure located at 1554 PINE ST Area 11 is unsafe, substandard, a public nuisance and that it be demolished within thirty (30) days. It is further requested that administration be directed to obtain bids for the demolition of the structure and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder. Case# & Project Address: # EN100108 - 1554 PINE ST Location and ownership: This structure is located on Pine St. between Forest and Grand Streets and is owned by US BANK, 4801 Fredrica St., Owensboro, KY 42301. Staff Correspondence: A dangerous building inspection was conducted on 06/15/10. The Notice and Order to Repair was issued on 06/25/10. On 08/05/10 the HBA declared the structure substandard and dangerous. Owner Contact: No one was present for the HBA meeting dated 08/05/10. No permits have been issued, no inspections scheduled and no owner contact. Financial Impact: CDBG Funds Budget action required: None State Equalized value: $ (19,500) Estimated cost to repair: $ 1,000 (Exterior Only) Staff Recommendation: To concur with the Housing Board of Appeals decision to demolish. SUMMARY FOR: 1554 PINE ST This is a 2 story wood framed, single family dwelling. This building appears to be abandon and has structural damage to the rear porch of the building that will require the replacement of the roofing material as well as the sheeting and the structural members for the roof. If left in it’s current condition this building will continue to be an attractive nuisance and will continue to be vandalized. CITY OF MUSKEGON 933 Terrace St., P.O. Box 537, Muskegon, MI 49443 (231) 724-6715 DANGEROUS BUILDING INSPECTION REPORT Friday, June 25, 2010 Enforcement # EN100108 Property Address 1554 PINE ST Parcel #24-205-283-0003-00 Owner US BANK Inspector: Henry Faltinowski Date completed: 06/15/2010 DEFICENCIES: 1. Replace all damaged roof structural problems on back porch area rafters, sheathing, roofing. 2. Numerous broken out windows and doors on home and garage. 3. Repair garage missing siding broken doors. 4. Repair interior damaged drywall. 5. Repair basement foundation wall leaking repair basement windows treated wood. Request interior inspection by all trades, electrical, mechanical and plumbing. Please contact Inspection Services with any questions or to schedule an inspection at 933 Terrace St., Muskegon, MI 49440 (231) 724 6758. Based upon my recent inspection of the above property I determined that the structure meets the definition of a Dangerous Building and/or Substandard Building as set forth in Section 10-61 of the Muskegon City Code. _____________________________ _______________ Henry Faltinowski, Building Inspector Date
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