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CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 12, 2011
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. Budgeted Asphalt Patcher Replacement. PUBLIC WORKS
C. Replacement Engine-Fire Rescue Truck. PUBLIC SAFETY
D. Purchase of Van for Police Department. PUBLIC SAFETY
E. Gaming License Request from Hume Home. CITY CLERK
F. City Cell Phone Contract. FINANCE
G. Consideration of Bids for Temple Street, Young to Laketon.
ENGINEERING
H. 2011 Pavement Marking Program. PUBLIC WORKS
I. 1937 Headwork’s Building Roof Replacement. WATER FILTRATION
J. Resolution to Support National Bike to Work Week. CITY CLERK
K. Sale of Parcel in Seaway Industrial Park. PLANNING & ECONOMIC
DEVELOPMENT
PUBLIC HEARINGS:
A. Review 2011-2016 Five-Year Consolidated Plan. COMMUNITY &
NEIGHBORHOOD SERVICES
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
NEW BUSINESS
A. Approval of Sale of City-Owned Home at 1331 Amity. COMMUNITY &
NEIGHBORHOOD SERVICES
B. Adding Property to the Lease With Option to Purchase Program.
COMMUNITY & NEIGHBORHOOD SERVICES
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: April 12, 2011
To: Honorable Mayor and City Commissioners
From: Ann Marie Becker, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes of the City
Commission Meeting that was held on Tuesday, March 22, 2011.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
MARCH 22, 2011
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, March 22,
2011.
Mayor Warmington opened the meeting with a prayer from Pastor Josh Dear
from the Lakeside Baptist 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.
2011-19 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the March 7th Commission
Worksession Meeting and the March 8th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Lease Proposal for MACkiteboarding at Pere Marquette Park. PUBLIC
WORKS
SUMMARY OF REQUEST: Staff is asking permission to enter into a three-year
contractual agreement with Steve Negen of MACkiteboarding for a Kiteboard
School and Shop in Pere Marquette Park at 1955 Beach Street (former old
brown/brick beach house building by Filtration Plant).
FINANCIAL IMPACT: Revenue will be $2,500 per year for 2011, 2012 and 2013
contract years. Lessee also agrees to provide a Handicapped Restroom outside
of building. Previous three-year contract revenue was $2,500 per year for the
2008, 2009, and 2010 seasons.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve request.
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C. City – MDOT Agreement for the Reconstruction of Temple Street, Young
to Laketon. ENGINEERING
SUMMARY OF REQUEST: Approve the contract with MDOT for the reconstruction
of Temple Street from Young to Laketon. And approve the resolution authorizing
the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT: MDOT’s participation is limited to the TEDF-A (state funds) of
$139,003. The estimated total construction cost is $175,000.
BUDGET ACTION REQUIRED: None at this time as this project appears in the
2010/2011 budget (2nd reforecast).
STAFF RECOMMENDATION: Approve the contract and resolution authorizing the
Mayor and Clerk to sign both.
D. City – MDOT Agreement for the Reconstruction of Getty Street, Laketon
to Evanston. ENGINEERING
SUMMARY OF REQUEST: Approve the contract with MDOT for the reconstruction
of Getty Street from Laketon to Evanston. And approve the resolution
authorizing the Mayor and City Clerk to sign the contract.
FINANCIAL IMPACT: MDOT’s participation is limited to the TEDF-F (state funds) of
$375,000. The estimated total construction cost is $1,000,000 which is different
than what is shown in the agreement of $525,000. The agreement figure of
$525,000 was based on a milling and resurfacing construction method which has
since been deemed as not appropriate due to underground work among other
reasons.
BUDGET ACTION REQUIRED: Due to higher than originally anticipated required
local match, it is likely the City need to issue MTF bonds for this and other grant
funded street projects. A potential bond issue was included in the 2010/2011
budget but was deferred. This project, if approved, will be included in the
2011/2012 budget.
STAFF RECOMMENDATION: Approve the contract and resolution authorizing the
Mayor and Clerk to sign both.
E. Amend Chapter 30 of the Code of Ordinances – Fire Prevention.
PUBLIC SAFETY
SUMMARY OF REQUEST: The Director of Public Safety is requesting that the City
Commission amend Chapter 30 of the Code of Ordinances concerning Fire
Prevention and Protection. This includes the adoption of the 2009 International
Fire Code.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the request.
Motion by Commissioner Carter, second by Commissioner Wierengo to
approve the Consent Agenda as read.
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ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, Gawron,
and Shepherd
Nays: None
MOTION PASSES
2011-20 UNFINISHED BUSINESS:
A. SECOND READING: Amendment to the Zoning Ordinance – Medical
Marihuana Facilities. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Staff initiated request to amend Section 1500 (Principle
Uses Permitted) of Article XV (I-2, General Industrial Districts) of the zoning
ordinance to allow medical marihuana caregiver facilities as a principal use
permitted in I-2, General Industrial Districts.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request at their February 10th meeting.
Motion by Commissioner Spataro, second by Commissioner Wierengo to
approve the amendment to the zoning ordinance for medical marihuana
facilities as described.
ROLL VOTE: Ayes: Carter, Gawron, Spataro, Warmington, Wierengo, and
Wisneski
Nays: Shepherd
MOTION PASSES
B. SECOND READING: Amendment to the City Code of Ordinances –
Medical Marihuana Regulation and Licensing. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Staff initiated request to amend Chapter 34, Article IV of
the Code of Ordinances to regulate and license certain aspects of medical
marihuana cultivation, use and distribution.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the ordinance amendment.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the second reading of the City Ordinance for medical marihuana regulation and
licensing.
ROLL VOTE: Ayes: Wierengo, Wisneski, Carter, Gawron, Spataro, and
Warmington
Nays: Shepherd
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MOTION PASSES
2011-21 NEW BUSINESS
A. Contract for Assessing Services. FINANCE
SUMMARY OF REQUEST: Since 1999, the City has contracted with the Muskegon
County Equalization Department for assessing services. The closure of the Sappi
plant together with general tax base loss changed the City’s required assessor
status from Level IV to Level III. This caused staff to explore whether taking the
assessing function back in-house might be cost effective. However, after in-
depth discussions with the County, we have reached a new five-year
agreement that continues the current intergovernmental service model while
achieving the City’s cost goals. The proposed agreement is presented here for
your consideration.
FINANCIAL IMPACT: The base cost for the proposed contract is $344,367 with
yearly adjustments based on the growth (decline) in the City’s taxable value.
The base cost for the current contract is $459,300.
BUDGET ACTION REQUIRED: Agreed to costs for assessing services will be
included in the forthcoming 2011-12 budget. The City will see reduced costs for
the last quarter of the 2010-11 fiscal year which will be incorporated in the
upcoming budget reforecast.
STAFF RECOMMENDATION: Authorize staff to execute documents with
Muskegon County for continued provision of assessing services.
Motion by Vice Mayor Gawron, second by Commissioner Carter to authorize
staff to execute documents with Muskegon County for continued provision of
assessing services.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter,
and Gawron
Nays: None
MOTION PASSES
B. 2011-2012 Healthcare & Wellness Program. FINANCE
SUMMARY OF REQUEST: It is time to renew the City's healthcare coverage for
2011-12. Renewal premiums for the City's current healthcare program have
come in at $887.88/employee/month, an 8.83% increase over the current rate
($815.85). Last year we experienced a 9.45% increase. In comparative terms,
the rate increase is fairly moderate. Many employers are experiencing double-
digit increases partially attributable to coverage enhancements mandated by
last year’s federal healthcare legislation.
For 2011-12, the City will continue to pay HRA deductibles for employees who
complete the four-step wellness initiative prior to April 30th; non-participants in
the wellness program will pay the first $500 (single)/ $1,000 (family) of the
deductible.
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Staff is also focusing on increasing the premium co-pay in employee
negotiations.
FINANCIAL IMPACT: Following is an estimate of proposed costs for the Priority
Health HMO program compared with the current year:
2010-11 2011-12
Annual Premium per Employee $9,790 $10,655
Approx. Self-Insured HRA Costs per Employee 700 700
Typical Employee Premium Co-pay (520) (780)
Net City Cost 9,970 10,575
Approx. No. of Covered Emp. (Subject to Reduction) 231 231
Total Annual City Cost $2,303,070 $2,442,825
BUDGET ACTION REQUIRED: Employee and retiree healthcare costs will be
included in the forthcoming 2011-12 budget.
STAFF RECOMMENDATION: Authorize staff to execute documents with Priority
Health to renew healthcare coverage.
Motion by Vice Mayor Gawron, second by Commissioner Carter to authorize
staff to execute documents with Priority Health to renew healthcare coverage.
ROLL VOTE: Ayes: Warmington, Wierengo, Wisneski, Carter, Gawron, Shepherd,
and Spataro
Nays: None
MOTION PASSES
C. 2011-2012 CDBG/HOME Recommendations. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To accept the recommendations of the Administration
and Citizen’s District Council in regards to the 2011-2012 CDBG/HOME
anticipated entitlement. The Commission is scheduled to make their preliminary
decision regarding the 2011-2012 CDBG/HOME allocation entitlement during the
City Commission meeting scheduled for March 22, 2011, with a public hearing of
the same on April 26, 2011.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: To determine a budget for the CNS department
and direct staff to publish the recommended budget for a 30-day comment
period for the proposed July 1, 2011 – June 30, 2012 program year.
STAFF RECOMMENDATION: Approve acceptance of the recommendations
of the Administration and Citizen’s District Council and to make their
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preliminary recommendations for publication.
COMMITTEE RECOMMENDATION: The Citizen District Council has made their
recommendations.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the acceptance of the recommendations of the administration and to
make their preliminary recommendations for publication.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo,
Wisneski, and Carter
Nays: None
MOTION PASSES
D. Civil Service Budget Adjustment. CITY MANAGER
SUMMARY OF REQUEST: To authorize an increase in the Civil Service budget in
the amount of $10,000. This amount should carry the Civil Service operation into
the middle of next month and provide the Civil Service Commission additional
time to consider options for the future direction of the operation. This action is
necessary due to the rate of spending in contrast to the original budgeted
allocation.
FINANCIAL IMPACT: $10,000.
BUDGET ACTION REQUIRED: Authorize the budget adjustment.
STAFF RECOMMENDATION: To approve the proposed budget adjustment.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve the
proposed budget adjustment regarding Civil Service.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, and Wierengo
Nays: Wisneski, Spataro, and Warmington
MOTION PASSES
ANY OTHER BUSINESS: Various comments were heard from the Commission.
PUBLIC PARTICIPATION: Public comments received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:25 p.m.
Respectfully submitted,
Ann Marie Becker, MMC
City Clerk
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Date: 04/12/2011
To: Honorable Mayor and City Commission
From: DPW Equipment Division
RE: Budgeted Asphalt Patcher Replacement
SUMMARY OF REQUEST: Authorize Staff to purchase an Asphalt Patcher
from Falcon Road Maintenance Equipment.
FINANCIAL IMPACT: Total Cost $ 20,032.00
BUDGET ACTION REQUIRED: None. Included in 2011Budget
STAFF RECOMMENDATION: Authorize Staff to purchase the Asphalt Patcher
from Falcon Road Maintenance Equipment
Asphalt Patcher
H.D. Industries Falcon RME K. M. INTERNATIONAL
Po box 8250 120 Waldo 6561 Bernie Kohler DR.
Jacksonville Tx Midland Mi 48642 North Branch MI. 49461
Asphalt Patcher $34,000.00 $20,032.00 $20,268.00
City Commission Meeting
Tuesday April 12, 2011
TO: Honorable Mayor and City Commissioners
FROM: Anthony L. Kleibecker, Director of Public Safety
DATE: March 30, 2011
SUBJECT: Replacement Engine-Fire Rescue Truck
________________________________________________________________________
Summary of Request:
The Director of Public Safety is requesting permission to purchase and replace the motor
in Rescue Truck #71 (R-71). R-71 is a 1993 Freightliner Heavy Rescue Truck.
Replacing the motor will extend the life of this vehicle by up to 5 years.
St. John Truck and Trailer Service of Muskegon has submitted a bid of $12,267.60 to
perform this work. Other estimates for this work were not solicited due to the fact that
shops qualified to do this work are far outside of our area. Additionally, all of our current
truck service is currently provided by St. John’s.
The funding will come from the Public Improvement-Fire Equipment Replacement Fund.
Financial Impact:
None
Budget Action Required:
None
Staff Recommendation:
Approval of the request.
City Commission Meeting
Tuesday April 12, 2011
TO: Honorable Mayor and City Commissioners
FROM: Anthony L. Kleibecker, Director of Public Safety
DATE: March 30, 2011
SUBJECT: Purchase of Van for Police Department
________________________________________________________________________
Summary of Request:
The Director of Public Safety is requesting permission to purchase a cargo van for the
narcotics team. It will replace a cargo van that has been in use for 15 years. With a price
limit in place, staff made inquiries at a number of dealerships both in and out of the city.
The only dealership in the area that could provide a suitable van was Meyers Chevrolet in
New Era.
The van is a 2007 Chevrolet Express van. Cost for the van is $6,000.00. The van has
been inspected by a mechanic from the Department of Public Works who found no major
issues with it.
Funds for this purchase will come from the Criminal Forfeiture Fund.
Financial Impact:
None
Budget Action Required:
None
Staff Recommendation:
Authorize the expenditure of the funds to purchase the van from Meyers Chevrolet.
Date: April 12, 2011
To: Honorable Mayor and City Commissioners
From: Ann Marie Becker, City Clerk
RE: Gaming License Request from Hume Home
SUMMARY OF REQUEST: The Hume Home of Muskegon is
requesting a resolution recognizing them as a non-profit organization
operating in the City for the purpose of obtaining a Gaming License.
They have been recognized as a 501(c)(3) organization by the State.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval
Date: April 12, 2011
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Consideration of Bids
Temple St., Young to Laketon Ave. (H-1674)
________________________________________________________________________
SUMMARY OF REQUEST:
Award the above referenced project to McCormick Sand Inc. out of Twin Lake,
MI. McCormick Sand submitted the lowest responsible bid of $136,927.00 (see
attached bid tabulation).
The award, if approved, must be contingent upon approval by the state.
FINANCIAL IMPACT:
MDOT’S participation through the TEDF- A (state funds) of $139,003 will be used
to fund this project. Engineering costs is estimated at an additional 15%.
BUDGET ACTION REQUIRED:
None at this time as this project is partial funded by a state grant and appears in
the 2010/2011 Budget (2nd reforecast).
STAFF RECOMMENDATION:
Award the contract to McCormick Sand.
COMMITTEE RECOMMENDATION:
H-1674 TEMPLE ST., YOUNG TO LAKETON AVE.
BID PROPOSALS - MARCH 29, 2011
CONTRACTOR NAGEL CONSTRUCTION, INC. MCCORMICK SAND INC. KAMMINGA & ROODVOETS, INC.
ADDRESS ENGINEER'S P.O. BOX 10 5430 RUSSELL RD. 3435 BROADMOOR S.E.
CITY/ST/ZIP ESTIMATE MOLINE, MI 49335-0010 TWIN LAKE, MI 49457 GRAND RAPIDS, MI 49512
ITEM OF WORK QTY UNIT UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE
1 Pavt, Rem, Modified 4027.00 Syd $ 5.00 $ 20,135.00 $ 2.30 $ 9,262.10 $ 1.00 $ 4,027.00 $ 2.00 $ 8,054.00
2 Traffic Control 1.00 LS $ 6,000.00 $ 6,000.00 $ 4,300.00 $ 4,300.00 $ 8,145.00 $ 8,145.00 $ 10,000.00 $ 10,000.00
3 Machine Grading, Modified 12.70 Sta $ 1,000.00 $ 12,700.00 $ 990.00 $ 12,573.00 $ 800.00 $ 10,160.00 $ 900.00 $ 11,430.00
4 Erosion Control, Inlet Protection, Fabric Drop 10.00 Ea $ 85.00 $ 850.00 $ 170.00 $ 1,700.00 $ 44.00 $ 440.00 $ 125.00 $ 1,250.00
5 Conc Pavt, Nonreinf, 8 inch 3927.00 Syd $ 35.00 $ 137,445.00 $ 28.35 $ 111,330.45 $ 28.00 $ 109,956.00 $ 38.45 $ 150,993.15
6 Driveway, Nonreinf Conc, 8 inch 52.00 Syd $ 30.00 $ 1,560.00 $ 28.35 $ 1,474.20 $ 31.00 $ 1,612.00 $ 55.00 $ 2,860.00
7 Concrete Curb and Gutter STD detail 1 91.00 Ft $ 20.00 $ 1,820.00 $ 9.00 $ 819.00 $ 17.00 $ 1,547.00 $ 22.00 $ 2,002.00
8 Sidewalk, Conc. 6 inch 155.00 Sft $ 6.00 $ 930.00 $ 315.00 $ 488.25 $ 4.00 $ 620.00 $ 4.00 $ 620.00
9 Prepared Soil and Seed Class A 70.00 Syd $ 3.00 $ 210.00 $ 10.00 $ 700.00 $ 6.00 $ 420.00 $ 7.00 $ 490.00
TOTAL $ 181,650.00 $ 142,647.00 $ 136,927.00 $ 187,699.15
CONTRACTOR DIVERSCO CONSTRUCTION CO. ACCURATE EXCAVATORS BRENNER EXCAVATING, INC.
ADDRESS ENGINEER'S PO BOX 409 2821 CENTRAL RD. 2841 132ND AVE.
CITY/ST/ZIP ESTIMATE GRANDVILLE, MI 49418 MUSKEGON, MI 49445 HOPKINS, MI 49328
ITEM OF WORK QTY UNIT UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE
1 Pavt, Rem, Modified 4027.00 Syd $ 5.00 $ 20,135.00 $ 1.50 $ 6,040.50 $ 2.12 $ 8,537.24 $ 3.00 $ 12,081.00
2 Traffic Control 1.00 LS $ 6,000.00 $ 6,000.00 $ 15,000.00 $ 15,000.00 $ 1,450.00 $ 1,450.00 $ 7,000.00 $ 7,000.00
3 Machine Grading, Modified 12.70 Sta $ 1,000.00 $ 12,700.00 $ 2,000.00 $ 25,400.00 $ 440.00 $ 5,588.00 $ 400.00 $ 5,080.00
4 Erosion Control, Inlet Protection, Fabric Drop 10.00 Ea $ 85.00 $ 850.00 $ 100.00 $ 1,000.00 $ 50.00 $ 500.00 $ 90.00 $ 900.00
5 Conc Pavt, Nonreinf, 8 inch 3927.00 Syd $ 35.00 $ 137,445.00 $ 30.00 $ 117,810.00 $ 36.50 $ 143,335.50 $ 28.00 $ 109,956.00
6 Driveway, Nonreinf Conc, 8 inch 52.00 Syd $ 30.00 $ 1,560.00 $ 27.00 $ 1,404.00 $ 44.35 $ 2,306.20 $ 31.50 $ 1,638.00
7 Concrete Curb and Gutter STD detail 1 91.00 Ft $ 20.00 $ 1,820.00 $ 9.00 $ 819.00 $ 13.00 $ 1,183.00 $ 9.60 $ 873.60
8 Sidewalk, Conc. 6 inch 155.00 Sft $ 6.00 $ 930.00 $ 3.00 $ 465.00 $ 3.80 $ 589.00 $ 3.10 $ 480.50
9 Prepared Soil and Seed Class A 70.00 Syd $ 3.00 $ 210.00 $ 8.00 $ 560.00 $ 19.50 $ 1,365.00 $ 3.00 $ 210.00
TOTAL $ 181,650.00 $ 168,498.50 $ 164,853.94 $ 138,219.10
AGENDA ITEM NO._____________
CITY COMMISSION MEETING ___________________
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: April 12, 2011
SUBJECT: 2011 Pavement Marking Program
SUMMARY OF REQUEST:
Staff is requesting permission to enter into 1-year contractual extension agreement with
Michigan Pavement Marking (MPM) of Wyoming, Michigan for centerline painting and
specialty markings. This contract is bid out by the Muskegon County Road Commission for local
agencies in the Muskegon County Pavement Marking Group with each member billed separately
by MPM for painting services requested.
FINANCIAL IMPACT:
Estimated cost for 2011 is $20,000 (which includes $5,000 for limited specialty markings).
Approximately $14,794 was spent in 2009 and $14,300 in 2010 for centerline painting, through
previous renewal contracts.
BUDGET ACTION REQUIRED:
None, contractual work has been budgeted for in the Highway Majors budget.
STAFF RECOMMENDATION:
Approve request.
COMMITTEE RECOMMENDATION:
Date: April 12, 2011
To: Honorable Mayor and City Commission
From: Water Filtration
RE: 1937 Headwork’s Building Roof Replacement
SUMMARY OF REQUEST:
Authorize staff to enter into an agreement with Gale Roofing for the
replacement of the roofs over the 1937 Headwork’s Building at the
Water Filtration Plant. Bids were solicited from three roofing companies
and only Gale submitted a bid.
FINANCIAL IMPACT:
The cost of the roof replacement is $27,006.
BUDGET ACTION REQUIRED:
None. This project is included in the 2011 budget.
STAFF RECOMMENDATION:
Authorize staff to enter into an agreement with Gale Roofing for the
replacement of the 1937 Headwork’s building roofs at the Water
Filtration Plant.
Date: April 5, 2011
To: Mohammed Al-Shatel, DPW Director
From: Kevin Herbert, Water Filtration Plant Supervisor
RE: 1937 Headwork’s Building Roof Replacement
In November of 2010 we experienced high winds that lifted the membrane roofing on the
three roofs over the 1937 headwork’s building. These roofs had new membranes and
insulation installed in 1999. The roofs were glued down around the perimeter but not
glued entirely or ballasted properly. We were able to install temporarily ballast to hold
down the membrane over the winter season and prevent leaking.
I am seeking approval for removal and replacement of the membrane with a fully adhered
installation as well as the addition of river rock ballast. With the completion of this
project all roofs at the Water Plant will be fully adhered and ballasted to last well beyond
the 15 year warranty period.
I solicited competitive price quotes from the 3 companies in the area that specialize in
membrane roof installation with the following results:
Gale Roofing Co., Inc. $27.006.00
PO Box 611
3006 Polk Rd.
Hart, Michigan 49420
East Muskegon Roofing Declined to Bid
1665 Holton Road
Muskegon, Michigan 49445
Stevens Construction Declined to Bid.
1825 S. Wolf Lake Rd.
Muskegon, Michigan 49441
I am recommending acceptance of Gale Roofing as the sole responsible bidder at a
budgeted cost of $27,006.00. We have had success with the roofing projects Gale has
performed in the past, they have responded quickly to any warranty issues and have
completed previous roofing projects in a timely and efficient manner.
3/17/2011
The City of Muskegon Water Filtration Plant is seeking competitive price quotes for a
roofing project on 3 buildings:
East Lower Roof over 37 Filters
River rock ballast entire roof
Repair south end wall flashing
1937 Main Headwork’s Building
Remove existing EPDM roofing and flashings.
Install ½” H.D. wood fiber board over existing insulation.
Install new 60 mil ballasted EDPM over ½” wood fiber board.
Double ballast all edges 8 foot wide.
Install new flashings to all walls, vents, curbs, roof drains and pipes per
manufacturer’s specifications.
Install termination bars at top of all flashings with proper sealants along top.
1937 Sloped Peak Roof
Remove existing EPDM roofing and flashings.
Install new 1.5” ISO fastened to concrete deck with insulation adhesive.
No screws will be allowed in deck.
Install fully adhered 60 EPDM over ISO insulation.
Install new flashings to walls and scuppers.
Extend flashing to bottom edge of cement coping.
Install termination bars at top of all flashings with proper sealant at top of bar.
Please contact:
Kevin Herbert
Plant Supervisor
Muskegon Water Filtration Plant
1900 Beach St.
Muskegon, Mi 49441
231-724-4104 Fax 231-755-5290
kevin.herbert@postman.org
Date: April 12, 2011
To: Honorable Mayor and City Commissioners
From: City Clerk
RE: Resolution to Support National Bike to Work
Week
SUMMARY OF REQUEST: Approval of the resolution proclaiming May 16-20, 2011,
as “Bike to Work Week” in Muskegon and encourage its observance to all citizens.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution.
Commission Meeting Date: April12, 2011
Date: April 7, 2011
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Sale of Parcel in Seaway Industrial Park
SUMMARY OF REQUEST:
To approve the sale of Lot #8 in Seaway Industrial Park to Schultz Transport, Inc., 421
Delano Ave, Muskegon, MI 49444. The lot has under an acre of usable space once
easements are taken into account. The purchase price is $5,000. The company will utilize
the new land in its plans to expand its lawn care services. The lots will be combined and the
new land will be used for mulch and other lawn care storage. The company will invest at
least $20,000 and plans to hire at least 3 people.
FINANCIAL IMPACT:
The sale of this lot will generate City of Muskegon income tax. It will also begin to generate
property taxes when the Renaissance Zone begins to phase out next year.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve and sign the attached resolution, deed and all other necessary documents.
COMMITTEE RECOMMENDATION:
None
4/7/2011
DEVELOPMENT AGREEMENT
CITY OF MUSKEGON RENAISSANCE ZONE
THIS IS AN AGREEMENT between the CITY OF MUSKEGON, a municipal
corporation, of 933 Terrace Street, Muskegon, Michigan 49441 ("City") and SCHULTZ
TRANSPORT, INC., of 421 Delano Ave, Muskegon, Michigan (49444) ("Company").
Recitals:
A. The City has established a Renaissance Zone. The Company desires to acquire
property within the Renaissance Zone. The City deems this Agreement to constitute a necessary
element in the City's determination regarding the location of Company in the Renaissance Zone.
B. The Company intends to acquire real property and expand its current business in a
Renaissance Zone. The Company understands that the City relies upon the assurances of the
Company in this Agreement as an inducement to sell certain real property.
NOW THEREFORE THE PARTIES, INCORPORATING THE ABOVE RECITALS,
AGREE:
1. DOCUMENTS ATTACHED. Included in this Agreement are the following
documents which have been collected and relied upon by the parties:
1.2 Real Estate Purchase Agreement.
2. COMPANY AGREEMENT. The Company agrees to the following commitments
which it shall perform in a timely and reasonably acceptable manner:
2.1 Execution of the Real Estate Purchase Agreement attached as Exhibit A,
simultaneously with execution of this agreement, and delivery of both to the City.
2.2 Expansion of the current business onto the new parcel subject to review
and modification by the City Planning Commission and/or City Commission. The design
and landscaping of the site shall be subject to the approval of the City, which shall
reasonably apply its zoning, site plan and other land use requirements.
2.3 The investment in the amount of twenty thousand dollars ($20,000) (the
"Investment Objective").
2.4 The creation of three jobs (the "Employment Objective") within the first
three (3) years of operation. This number will include the transfer of jobs from other
municipalities. Transferred jobs from another location in the City will be counted, but
limited to one transferred job within the City per one new job.
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2.5 The closing of the purchase of the properties described in the Real Estate
Purchase Agreement (the "Properties").
2.6 Cooperation with City representatives to supply all requested and required
documentation necessary in the City's reasonable judgment to determine compliance with
the undertakings set forth in this Agreement and its attachments.
2.7 The Company shall take all required precautions to avoid the release of
any hazardous substance in violation of any environmental law on its premises, and shall
report any releases to the appropriate authority in a timely and complete manner as
required by law, providing copies of said documentation to the City. Subject to its rights
to contest any proposed orders and actions, the Company shall comply with all orders and
actions of any governmental agency having authority.
2.8 During the entire period for which the Renaissance Zone is in effect, the
Company shall maintain the improvements so as to minimize physical or functional
obsolescence.
3. Governing Law. This Agreement shall be construed and enforced in accordance
with the Laws of the State of Michigan applicable to contracts made and to be performed within
the State of Michigan, and in particular the Renaissance Zone Act of the State, as amended.
4. Counterparts. This Agreement may be executed in one or more counterparts.
Notwithstanding such execution all such counterparts shall constitute one and the same
Agreement.
5. Benefit. This Agreement shall be binding upon and inure to the benefit of the
respective parties, their successors and personal representatives. The Company shall have the
right to assign this Agreement subject to the consent of the City. Except as so provided, there is
no third party beneficiary intended upon the execution of this Agreement.
6. Invalidity. In the event any provision of this agreement is declared invalid by a
court or tribunal having competent jurisdiction, the remainder of the agreement shall remain in
full force and effect.
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CITY OF MUSKEGON,
a municipal corporation
By
Stephen J. Warmington, Mayor
and
Ann Marie Becker, MMC, Clerk
Dated: _____________, 2011
SCHULTZ TRANSPORT, INC.,
a _____________ Corporation
By
James Schultz, ____________
Dated: ______________, 2011
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REAL ESTATE PURCHASE AGREEMENT
THIS AGREEMENT is made ________________________, 2011, by and between the
CITY OF MUSKEGON, a municipal corporation, with offices at 933 Terrace, Muskegon,
Michigan 49440 ("Seller"), and SHCULTZ TRANSPORT, INC., of 921 Delano Ave,
Muskegon, MI 49444("Buyer").
1. General Agreement and Description of Premises. Upon the terms and
conditions of this Agreement, Seller agrees to sell, and Buyer agrees to buy, marketable record
title of real estate, and all improvements thereon, with all beneficial easements, and with all of
Seller's right, title and interest in all adjoining public ways, the real property located in the City
of Muskegon, Muskegon County, Michigan ("Premises"), and specifically described as:
See attached Exhibit A
Subject to the reservations, restrictions and easements of record, provided said reservations,
restrictions and easements of record are acceptable to Buyer upon disclosure and review of the
same.
2. Purchase Price and Manner of Payment. The purchase price for the Premises
shall be as follows:
a. At and upon closing, Buyer shall pay Seller Five Thousand Dollars
($5,000) for the Premises.
3. Taxes and Assessments. Seller shall be responsible for taxes and assessments
(general and special) that are due and payable at the time of Closing. Buyer shall be responsible
for taxes, if any, which become due and payable after closing.
4. Title Insurance. Seller agrees to deliver to Buyer's attorney, within ten (10) days
after the Effective Date, a commitment for title insurance, issued by Transnation Title Insurance
Company, for an amount not less than the purchase price stated in this Agreement, guaranteeing
title to the Premises on the conditions required herein. In the event the reservations, restrictions,
easements or other matters of record disclosed by said title commitment are, in the sole
discretion of Buyer, deemed unacceptable, Seller shall have fifteen (15) days from the date Seller
is notified in writing of such title objections to remedy such objections to Buyer's satisfaction. If
Seller resolves such title objections and remedies the title (by obtaining satisfactory title
insurance or otherwise effecting curative measures acceptable to Buyer) within the time
specified, Buyer agrees to complete this sale as herein provided, assuming all other
contingencies are satisfied in Buyer's judgment or are waived by Buyer. If Seller fails to resolve
such title objections within the time above specified to Buyer's satisfaction or, fails to obtain
satisfactory title insurance to Buyer's satisfaction, this Agreement will be terminated at Buyer's
option. The premium for the owner's title policy shall be paid by Seller.
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5. Survey. Buyer at its own expense may obtain a survey of the Premises, and
Buyer or its surveyor or other agents may enter the Premises for that purpose prior to Closing. If
no survey is obtained, Buyer agrees that Buyer is relying solely upon Buyer's own judgment as to
the location, boundaries and area of the Premises and improvements thereon without regard to
any representations that may have been made by Seller or any other person. In the event that a
survey by a registered land surveyor made prior to closing discloses an encroachment or
substantial variation from the presumed land boundaries or area, Seller shall have the option of
effecting a remedy within thirty (30) days after disclosure, or tendering Buyer's deposit in full
termination of this Purchase Agreement, and paying the cost of such survey. Buyer may elect to
purchase the Premises subject to said encroachment or variation.
6. Environmental Inspection. At its own cost and expense, Buyer and its agents
shall have the right, but not the obligation, to enter the Property to perform environmental
investigations, studies, and tests which are permitted hereunder, to determine the environmental
condition of the Property ("Environmental Inspection"); provided, however, that for purposes of
conducting any environmental investigation, Buyer and its agents shall notify Seller, which shall
have the option of accompanying Buyer or its agents during such Environmental Inspection. The
Environmental Inspection shall be completed within twenty (20) days of execution of this
Agreement, and Buyer shall have the right to obtain any BEA determination it deems
appropriate. If Buyer is dissatisfied, in its sole discretion, with the Environmental Inspection, it
may terminate this Agreement with no further obligations.
7. Condition of Premises and Examination by Buyer. NO IMPLIED
WARRANTIES OF HABITABILITY, QUALITY, CONDITION, FITNESS FOR A
PARTICULAR PURPOSE, OR ANY OTHER IMPLIED WARRANTIES SHALL OPERATE
BETWEEN SELLER AND BUYER, AND BUYER EXPRESSLY WAIVES ANY AND ALL
SUCH IMPLIED WARRANTIES. BUYER UNDERSTANDS AND AGREES THAT IF
BUYER ACQUIRES THE PREMISES, THE PREMISES ARE TAKEN "AS IS," SUBJECT
TO THE EXPRESS COVENANTS, CONDITIONS AND/OR EXPRESS WARRANTIES
CONTAINED IN THIS PURCHASE AGREEMENT. BUYER WILL ACKNOWLEDGE AT
AND UPON CLOSING THAT IT HAS PERSONALLY INSPECTED THE PREMISES AND
IS SATISFIED WITH THE CONDITION OF THE LAND, AND THE BUILDINGS AND
IMPROVEMENTS THEREON, AND THAT THE PROPERTY IS BEING PURCHASED AS
A RESULT OF SUCH INSPECTION AND INVESTIGATION AND NOT DUE TO ANY
REPRESENTATIONS MADE BY OR ON BEHALF OF SELLER. SELLER KNOWS OF NO
HAZARDOUS SUBSTANCES OR CONTAMINATION EXCEPT FOR SUCH MATTERS AS
HAVE BEEN DISCLOSED IN THE ENVIRONMENTAL REPORTS ON THE FORMER
SMITH PACKING PROPERTY AND THE FORMER NORDSTROM/NEILSEN
PROPERTIES WHICH HAVE BEEN FURNISHED OR MADE KNOWN TO BUYER, AND
BUYER WAIVES ANY CLAIM AGAINST SELLER IN THE EVENT SUCH
STUBSTANCES ARE OTHERWISE FOUND AND UNLESS SELLER MISREPRESENTED
ITS KNOWLEDGE.
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9. Real Estate Commission. Buyer and Seller both acknowledge and agree that
neither has dealt with any real estate agents, brokers or salespersons regarding this sale, and that
no agent, broker, salesperson or other party is entitled to a real estate commission upon the
closing of this sale. Buyer and Seller both agree to indemnify and hold the other harmless from
any liability, including reasonable attorney fees, occasioned by reason of any person or entity
asserting a claim for a real estate commission arising from actions taken by the other party.
10. Closing. The closing date of this sale shall be within thirty (30) days of execution
of this Agreement ("Closing"), subject to Buyer's right to extend Closing for an additional thirty
(30) days upon written notice to Seller. The Closing shall be conducted at Transnation Title
Insurance Company, 570 Seminole Road, Ste. 102, Muskegon, MI 49444. If necessary, the
parties shall execute an IRS closing report at the Closing.
11. Delivery of Deed. Seller shall execute and deliver a quit claim deed to Buyer at
Closing for the Premises and shall pay any transfer taxes due and owing. Such conveyance shall
include all splits or division rights with respect to the Premises.
12. Affidavit of Title. At the Closing, Seller shall deliver to Buyer an executed
Affidavit of Title.
13. Date of Possession. Possession of Premises is to be delivered to Buyer by Seller
on the date of Closing.
14. Costs. Seller shall be responsible to pay all applicable transfer taxes, if any, in
the amount required by law. In addition, Seller shall be responsible to pay for the recording of
any instrument that must be recorded to clear title to the Premises, to the extent required by this
Agreement. Buyer shall pay for the cost of recording the deed to be delivered at Closing. Buyer
shall pay the Transnation Title closing fee. Each party shall pay its own attorney fees.
15. Contingencies. Buyer's obligations under this Agreement are subject to and
contingent upon satisfaction by Buyer in its sole discretion (or written waiver by Buyer) of the
following conditions:
In the event one or more of these conditions are not satisfied or waived, this Agreement shall
automatically terminate with neither party having any further obligation to the other.
16. General Provisions.
a. Paragraph Headings. The paragraph headings are inserted in this
Agreement only for convenience.
b. Pronouns. When applicable, pronouns and relative words shall be read as
plural, feminine or neuter.
c. Merger. It is understood and agreed that all understandings and
agreements previously made between Buyer and Seller with respect to the subject matter
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hereof are merged into this Agreement, which alone fully and completely expresses the
agreement of the parties with respect to the subject matter hereof.
d. Governing Law. This Agreement shall be interpreted and enforced
pursuant to the laws of the State of Michigan.
e. Severability. In case any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any
respect, such invalidity, illegality, or unenforceability shall not affect any other provision
of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or
unenforceable provision(s) had never been contained herein.
f. Survival of Representations and Warranties. The representations,
warranties, covenants and agreements contained in this Agreement and in any instrument
provided for herein shall survive the Closing and continue in full force and effect after
the consummation of this purchase and sale.
g. Modification of the Agreement. This Agreement shall not be amended
except by a writing signed by Seller and Buyer.
h. Authority. Each party represents and warrants to the other that the
persons executing and delivering this Agreement on their behalf are duly authorized to do
so.
i. Effective Date. The Effective Date of this Agreement is the date
that the last party hereto signs this Agreement.
The parties have executed this Real Estate Purchase Agreement the day and year first
above written.
SELLER: CITY OF MUSKEGON
_______________________________________
Stephen J. Warmington, Mayor
_______________________________________
Ann Marie Becker, Clerk
BUYER:
_______________________________________
By:____________________________________
Officer, Title
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EXHIBIT A
CITY OF MUSKEGON BLK 3 AND THE VAC ALLEY IN SD BLK 3 AND PT OF VAC
WAALKERS ST YOUNG & WILLIAMS ADDN COM AT THE SE COR OF THE NW FRL
1/4 OF SEC 31 T10N R16W TH N 00D 00M 00S E 644.09 FT ALG THE E LN OF SD NW
FRL 1/4; TH S 89D 39M 32S W 340.23 FT ALG THE S LN OF SD YOUNG & WILLIAMS
ADDN FOR POB TH S 89D 39M 32S W 299.00 FT ALG SD S LN TH N 00D 00M 00S W
68.00 FT ALG THE W LN OF SD BLK 3 TH N 89D 40M 00S E 67.00 FT ALG THE S ROW
OF DELANO AVE TH N 00D 00M 00S W 17.00 FT ALG SD R/W LN TH N 89D 40M 00S E
232.00 FT ALG SD R/W LN TH S 00D 00M 00S E 84.95 FT ALG THE C/L OF VAC
WAALKES ST TO POB.
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QUIT-CLAIM DEED
KNOW ALL MEN BY THESE PRESENTS: That the CITY of Muskegon, a municipal
corporation, of 933 Terrace Street, Muskegon, Michigan 49440,
QUIT CLAIMS TO: James Schultz, a married man, of 421 Delano Ave, Muskegon, MI
49444
The following described premises situated in the City of Muskegon, County of
Muskegon, State of Michigan, to wit:
CITY OF MUSKEGON BLK 3 AND THE VAC ALLEY IN SD BLK 3 AND PT OF VAC WAALKERS
ST YOUNG & WILLIAMS ADDN COM AT THE SE COR OF THE NW FRL 1/4 OF SEC 31 T10N
R16W TH N 00D 00M 00S E 644.09 FT ALG THE E LN OF SD NW FRL 1/4; TH S 89D 39M 32S W
340.23 FT ALG THE S LN OF SD YOUNG & WILLIAMS ADDN FOR POB TH S 89D 39M 32S W
299.00 FT ALG SD S LN TH N 00D 00M 00S W 68.00 FT ALG THE W LN OF SD BLK 3 TH N 89D
40M 00S E 67.00 FT ALG THE S ROW OF DELANO AVE TH N 00D 00M 00S W 17.00 FT ALG SD
R/W LN TH N 89D 40M 00S E 232.00 FT ALG SD R/W LN TH S 00D 00M 00S E 84.95 FT ALG THE
C/L OF VAC WAALKES ST TO POB.
For the sum of: $5,000
Commonly known as: Lot 8 of Seaway Industrial Park
This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA 207.505(h)(i) and
MCLA 207.505(h)(i) and MCLA 207.526 Sec. (h)(i).
Dated this __________day of ________________, 20___.
Signed in the presence of : CITY OF MUSKEGON
____________________ By:________________________
Stephen J. Wamington, Its Mayor
____________________ and:________________________
Ann Marie Becker, City Clerk
Commission Meeting Date: April 12, 2011
Date: April 5, 2011
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services Department
RE: Public Hearing to Review 2011 - 2016 Five-year
Consolidated Plan
__________________________________________________________________
SUMMARY OF REQUEST: To conduct a public hearing on April 12, 2011 to
receive comments from the public concerning the 2011 - 2016 Five-year
Consolidated Plan developed by the Community and Neighborhood Services
department.
After the public hearing has been conducted and all the comments have been
documented, the CNS office requests that the Commission direct the CNS
staff to submit the required documents to HUD in compliance with 24 CFR
91.520.
FINANCIAL IMPACT: The City is required to submit the Five-year
Consolidated Plan report in order to continue receiving CDBG and HOME
funding.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To direct staff to gather comments from the
public and to submit the Five-year Consolidated Plan to HUD after the public
comment period.
Commission Meeting Date: April 12, 2011
Date: April 5, 2011
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services Department
RE: Approval of Sale of City owned home at 1331 Amity
SUMMARY OF REQUEST: To approve the attached resolution and instruct
the Community and Neighborhood Services department to complete the sales
transaction between Mr. Brandon Stever for the totally rehabilitated home at
1331 Amity Avenue, which is part of the City’s Neighborhood Stabilization
Program (NSP) through the Michigan State Housing Development Authority
Office of Community Development. Mr. Stever’s purchase price is $62,000
with a subsidy of at least $7,000.
The beautiful four-bedroom, two full-bath home was previously vacant. As a
part of the City’s continuous neighborhood redevelopment efforts, this house is
our first rehabilitated home with wheelchair accessibility features on the main
floor.
FINANCIAL IMPACT: The proceeds from the sale will be used to cover any
extra costs associated with this rehab and to sustain our current investments
under NSP activities. Program Income funds will be used to cover NSP
activity costs for the City of Muskegon.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and direct the CNS
staff to complete the sale.
COMMITTEE RECOMMENDATION: None.
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE PURCHASE OF
CURRENTLY STATE OWNED PROPERTY AT 1331 AMITY AVENUE
WHEREAS, the City of Muskegon is dedicated to the redevelopment of its
neighborhoods and;
WHEREAS, the City of Muskegon is dedicated to promoting high quality
affordable single-family housing in the community and;
WHEREAS, the City of Muskegon is dedicated to promoting homeownership
throughout its neighborhoods;
NOW THEREFORE, BE IT RESOLVED that the City Commission hereby
approves the sale of 1331 Amity Avenue to Brandon Stever of 3727 Richardson
Avenue, Muskegon. Mr. Stever will purchase the house as an owner-occupied
structure.
Adopted this 12th day of April, 2011.
Ayes:
Nays:
By ______________________________
Stephen J. Warmington, Mayor
By ______________________________
Ann Marie Becker, MMC City Clerk
AM_Resolution
Commission Meeting Date: April 12, 2011
Date: April 5, 2011
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services Department
RE: Adding property to the Lease with Option to Purchase
Program
____________________________________________________________________________________________________________________________________
SUMMARY OF REQUEST: CNS requests Commission approval to sell the
two remaining HOME-Infill properties through our Lease with Option to
Purchase Program: 539 Orchard and 1581 Division. Modifications to the
Lease program guidelines will restrict the occupants purchase timeline to six
month increments. The lease agreement will provide additional six month
extension approvals, but not to exceed an 18-month purchase date. Lessees
will be required to secure a mortgage under these options: 10% discount
within the first six months, 5% discount will be applied at the end of 12 months
and a 3% discount will occur at the end of an 18-month agreement.
FUNDING IMPACT: This will eliminate most of the overhead costs the City
has because of the length of time these homes have been on the market.
Costs include utilities, alarm system, grass cutting, snow removal, etc.
BUDGET ACTION REQUIRED: None at this time
STAFF RECOMMENDATION: To approve the request to place 539 Orchard
and 1581 Division on the Lease with Option to Purchase program with
modifications.
539 Orchard 1581 Division
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