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CITY OF MUSKEGON CITY COMMISSION MEETING MARCH 9, 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. Gaming License Request for the Greater Muskegon Woman’s Club. CITY CLERK C. Liquor License Transfer Request for 88 Gas & Beer, Inc., 1992 S. Getty Street. CITY CLERK D. Purchase of 531 Orchard. COMMUNITY & NEIGHBORHOOD SERVICES E. 2010-2011 Healthcare & Wellness Program. FINANCE F. Project Safe Neighborhood Subaward Agreement. PUBLIC SAFETY G. City-MDOT Agreement for the Bridge Work on US-31BR over the South Branch of the Muskegon River. ENGINEERING H. Fireworks Display Permit for West Michigan Burnerz. CITY CLERK PUBLIC HEARINGS: A. Recommendation for Annual Renewal of Liquor Licenses. CITY CLERK COMMUNICATIONS: CITY MANAGER’S REPORT: UNFINISHED BUSINESS: NEW BUSINESS: A. Consideration of Bids for B-241 Heritage Landing Bike Path Extension. ENGINEERING B. Water Bond Refunding. FINANCE C. Summer Celebration Payment Deferral. CITY MANAGER 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: March 9, 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 February 19th Goal Setting Meeting and the February 23rd Regular Commission Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. CITY COMMISSION GOAL SETTING SESSION FEBRUARY 19, 2010 MINUTES Present: Mayor Warmington, Vice Mayor Gawron, Commissioners Carter, Shepherd, Spataro, Wierengo, and Wisneski. Staff Present: Mazade, Al-Shatel, Grant, Kleibecker, Maurer, Kincaid, Kuhn, Brubaker-Clarke, Griffin, Paul, Lewis, Smith, Thompson, Scholle, and Becker. Others: Dave Alexander, Muskegon Chronicle Opening remarks were given by Mayor Warmington. Bob Kuhn facilitated the session. Meeting began at 9:00 a.m. The Mission, Vision and Value Statements were reviewed. The 2010 Goal Setting meeting centered around proposed financial and program cuts to the 2010 and 2011 fiscal years. Commissioners offered suggestions of services that could be further evaluated for possible elimination or reduction of services. The following categories and suggestions were made: Get out of the business Youth services (eliminate completely, partially, or partnership with another organization(s)) Senior citizen transit Streetlight reduction Is this duplicated Economic development CIS mapping Inspections LC Walker Arena Contracting out Traffic Department Cemetery maintenance Lift station Job descriptions (regionally or internally) Level of service reduction Extend vehicle rentals Cost reductions Wages and benefits Vendors Smartzone debt Cost sharing of benefits Healthcare costs target 15% for employee responsibility Reorganization CDBG Funds Fire services Physical consolidation of City Hall Prevailing wage rates Youth programs Discussion also took place on a possible millage increase. Tim Paul indicated that a two mill increase is the equivalent of $1.5 million in revenue. Commissioners agreed that cuts to the budget need to be made before a millage increase can be considered. City Staff left the meeting/session at 12:30 p.m. City Manager and Commission continued discussions immediately following. ______________________________ Ann Marie Becker, MMC City Clerk CITY OF MUSKEGON CITY COMMISSION MEETING FEBRUARY 23, 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, February 23, 2010. Mayor Warmington opened the meeting with a prayer from Vice Mayor Gawron 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 Chris Carter, Clara Shepherd, Lawrence Spataro, Sue Wierengo, and Steve Wisneski, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk Ann Marie Becker. 2010-15 INTRODUCTIONS/PRESENTATION: A. MAREC – Energy Partners, LLC. Cathy Brubaker-Clarke introduced Arn Boezaart who gave an overview. 2010-16 CONSENT AGENDA: A. Approval of Minutes. CITY CLERK SUMMARY OF REQUEST: To approve minutes for the February 1st Special Commission Meeting, the February 8th Commission Worksession, and the February 9th Regular Commission Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes B. Amend Zoning Ordinance – Vintage Shops. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Request to amend Section 1101 of Article XI to include “Vintage Shops” as a special use permitted in B-2 districts. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the request to amend Section 1101 of Article XI to include “Vintage Shops” as a special use permitted in B-2 districts. COMMITTEE RECOMMENDATION: The Planning Commission recommended approval of the request at their February 11th meeting. The vote was unanimous. C. Amend Zoning Ordinance Definitions for Vintage Shops. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Request to amend Article II (Definitions) to add definitions for “Vintage Shops” and “Vintage Merchandise.” FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the request to amend Article II (Definitions) to add definitions for “Vintage Shops” and “Vintage Merchandise.” COMMITTEE RECOMMENDATION: The Planning Commission recommended approval of the request at their February 11th meeting. The vote was unanimous. D. Road Salt Procurement Authorization. PUBLIC WORKS SUMMARY OF REQUEST: Authorize staff to enter into an annual contract for road salt procurement through the State of Michigan Purchasing Program (MIDEAL). FINANCIAL IMPACT: Per ton prices determined yearly; average winter purchases of between 4,000-6,000 tons. The most current contracts have solicited 2006/2007 pricing of $32.99/ton and 2007/2008 pricing of $34.24/ton and 2008/2009 pricing of $40.40/ton and 2009/2010 extended contract price of $56.49/ton. BUDGET ACTION REQUIRED: None, expense is budgeted yearly through Public Works. STAFF RECOMMENDATION: Approve request. E. Amend 2008–2009 and 2009-2010 CDBG and HOME Action Plans. COMMUNITY & NEIGHBORHOOD SERVICES SUMMARY OF REQUEST: To approve for the CNS office to amend the 2008-2009 and 2009-2010 CDBG and HOME Action Plans. In 2007 the City of Muskegon was awarded a three-year Healthy Home Lead grant from the U. S. Department of Housing and Urban Development for $1,000,070. The first two years of the grant were designed to focus on community outreach and the abatement of homes that tested positive for lead. The last year, which we are currently in, is to be used to take care of miscellaneous items that need to be addressed in order to close out the grant. In the original grant documentation, the City was to be responsible for $658,304 in in-kind and/or cash match. To complete the City’s match requirements, the CNS office is proposing the following adjustments to its 2008-2009 and 2009-2010 Action Plans: Reallocate $140,000 from the 2009-2010 Action Plan originally allocated to HOME Weatherization. Reallocate $50,000 from the 2009-2010 Action Plan originally allocated to HOME Rental Rehabilitation. Reallocate $10,000 from the 2009-2010 Action Plan originally allocated to CDBG Delivery Services. Reallocate $30,000 from the 2008-2009 Action Plan from HOME Infill New Construction. FINANCIAL IMPACT: Those amounts will be deducted from the specific program budgets. BUDGET ACTION REQUIRED: The amendment of the 2008 and 2009 budgets. STAFF RECOMMENDATION: To approve for the CNS office to amend the 2008 and 2009 Action Plans in the manner described above to meet its grant match requirements. F. Resolution in Support of Protecting the Great Lakes from the Asian Carp. CITY CLERK SUMMARY OF REQUEST: Approve the resolution to support Federal and State efforts to prevent the Asian Carp from infiltrating the Great Lakes. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval. Motion by Vice Mayor Gawron, second by Commissioner Wierengo to approve the Consent Agenda as presented. ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Wisneski, and Carter Nays: None MOTION PASSES 2010-17 NEW BUSINESS: A. Concurrence with the Housing Board of Appeals Notice and Order to Demolish the following: PUBLIC SAFETY 558 E. Apple Avenue (Area 11) 337 Catawba Avenue 313 E. Forest Avenue SUMMARY OF REQUEST: This is to request that the City Commission concur with the findings of the Housing Board of Appeals that the structures are unsafe, substandard, a public nuisance and that they be demolished within 30 days. It is further requested that administration be directed to obtain bids for the demolition of the structures and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder. FINANCIAL IMPACT: CDBG Funds. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision to demolish. Motion by Commissioner Spataro, second by Commissioner Shepherd to concur with the Housing Board of Appeals notice and order to demolish 558 E. Apple Avenue, 337 Catawba Avenue, and 313 E. Forest Avenue. ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter, and Gawron Nays: None MOTION PASSES B. Urban Revitalization Grant. PLANNING & ECONOMIC DEVELOPMENT Motion by Commissioner Spataro, second by Vice Mayor Gawron to adopt the two resolutions presented contingent on Russell Block Market, Inc. providing irrevocable letter of credit, bond, cash or bank account or other means acceptable to the City Attorney and City Manager prior to the grant submittal by the City of Muskegon for the local match of $90,000. ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, and Gawron Nays: Shepherd MOTION PASSES PUBLIC PARTICIPATION: Various comments were heard from the public. ADJOURNMENT: The City Commission Meeting adjourned at 5:58 p.m. Respectfully submitted, Ann Marie Becker, MMC City Clerk Date: March 9, 2010 To: Honorable Mayor and City Commissioners From: Ann Marie Becker, City Clerk RE: Gaming License Request SUMMARY OF REQUEST: The Greater Muskegon Woman’s Club 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: March 9, 2010 To: Honorable Mayor and City Commissioners From: Ann Marie Becker, City Clerk RE: Liquor License Transfer Request 88 Gas & Beer, Inc. 1992 S. Getty Street SUMMARY OF REQUEST: The Liquor Control Commission is seeking local recommendation on a request from 88 Gas & Beer, Inc. to transfer ownership of the 2009 SDM License located at 1992 S. Getty, from Raj & Sidhu, Inc. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: All departments are recommending approval. Date: March 10, 2010 To: Honorable Mayor and City Commissioners From: Finance Director RE: 2010-2011 Healthcare & Wellness Program SUMMARY OF REQUEST: It is time to renew the City's healthcare coverage for 2010-11. Last year significant changes were made to the healthcare program including introduction of HRA accounts and adoption of Priority Health’s “co-pay alignment” program. These measures helped stabilize costs in 2010. However, healthcare costs continue to rise. Renewal premiums for the City's current healthcare program have come in at $815.85/employee/month, a 9.45% increase over the current rate ($745.40). Staff proposes implementation of a formal wellness initiative tied to specific benefit levels. For 2010-11, Wellness Program participation will mean the City will continue to pay HRA deductibles; non-participants will pay the first $500 (single)/ $1,000 (family) of the deductible. As employee deductible shares increase in future years, a differential will be maintained to incentivize Wellness participation. FINANCIAL IMPACT: Following is a comparison of current and next year costs for the Priority Health HMO program: 2009-10 2010-11 Premium $8,945 $9,790 Self-Insured HRA Costs (a) 900 981 Employee Premium Co-pay (520) (520) Net City Cost/EE 9,325 10,251 Number of Covered Employees (b) 234 234 Total Annual City Cost $2,182,050 $2,398,734 (a) Estimated based on YTD experience (b) Will likely decrease in 2010-11 due to cutbacks BUDGET ACTION REQUIRED: None at this time. Employee and retiree healthcare costs are included in the 2010 budget. Five months of the 2010 budget year will be at the “old” rate and seven months will be at the “new” rate. The net weighted average monthly cost for 2010 is $9,865/EE vs a budgeted amount of $9,842/EE. There are adequate reserves in the General Insurance Fund to cover the difference. STAFF RECOMMENDATION: Authorize staff to execute documents with Priority Health to renew healthcare coverage and implement the Wellness program outlined herein. COMMITTEE RECOMMENDATION: None. 1 PRIORITYHMOSM COPAY ALIGNMENT RATE EXHIBIT Proposal for: City of Muskegon Active Employee Plan Effective Date: June 1, 2010 – May 31, 2011 Rate Guarantee: For 12 months from the effective date of coverage, or to the renewal date of the traditional carrier, whichever is sooner. Benefit Level: Basic agreement with: $15 PCP Office Visit Copayment $30 Specialist Office Visit Copayment 100% Hospital Coverage Deductible: $1,000 Individual / $2,000 Family Medical Deductible Riders: $10/$40 Prescription Drug Copayment with Contraceptive Medications Mail Order: 90-Day Supply at Two Times the Rx Copayment 80% Durable Medical Equipment Coverage 80% Prosthetic & Orthotics Coverage $100 Advanced Imaging Copayment $100 Emergency Room Copayment $45 Urgent Care Copayment $50 Ambulance Copayment Vision Coverage – High Plan (exam & supplies every one contract year) Health by Choice Rewards Monthly Rate: Single: Double: Family: $815.85 $815.85 $815.85 PRIORITY HEALTH Paula Brawdy Key Account Manager March 2, 2010 Rates are subject to approval by the Office of Financial and Insurance Regulation (OFIR). Priority Health reserves the right to withdraw this rate exhibit up to the effective date of coverage should the account fail to meet minimum underwriting standards. A decision on the benefit level for renewal of Priority Health must be received by the 1st of the month prior to the renewal date. If no decision is received, the plan will automatically renew at the current benefit level and benefits cannot be changed mid plan year. CITY OF MUSKEGON RENEWAL HISTORY Renewal Renewal Annual Cost Est City Cost Increase/ PCP Office Urgent Emergency DME/ Date Rate Per Employee Deductible Decrease Plan Hospital Visit Care Room PO Ambulance Vision RX 6/1/2001 Physicians Health Plan 6/1/2002 $ 526.33 $ 6,315.96 n/a HMO 100% $10 $10 $25 80% $50 12mth $10 6/1/2003 $ 623.27 $ 7,479.24 18.40% HMO 100% $10 $10 $25 80% $50 12mth $10 6/1/2004 $ 678.43 $ 8,141.16 8.80% HMO 100% $10 $10 $25 80% $50 12mth $15 6/1/2005 $ 693.27 $ 8,319.24 2.20% HMO 100% $10 $10 $25 80% $50 12mth $15/$25 6/1/2006 $ 744.43 $ 8,933.16 7.40% HMO 100% $10 $10 $25 80% $50 12mth $15/$25 6/1/2007 $ 787.87 $ 9,454.44 5.80% HMO 100% $15 $25 $50 80% $50 12mth $15/$30 6/1/2008 $ 835.19 $ 10,022.28 6.00% HMO 100% $15 $25 $50 80% $50 12mth $15/$30 6/1/2009 $ 745.40 $ 8,944.80 $ 900.00 -10.70% HMO/HRA 100%* $15** $45 $100 80% $50 12mth $10/$40 6/1/2010 $ 815.85 $ 9,790.20 $ 981.00 9.45% HMO/HRA 100%* $15** $45 $100 80% $50 12mth $10/$40 * $1,000/$2,000 HRA/Deductible - 2009-10: City pays full deductible - costs are approx. $1,000/ee/yr - 2010-11: City to pay full deductible for employees participating in wellness initiative; non-particiapnts to pay first $500/$1000 of deductible ** Copay Alignment ($15 PCP, $30 Spec., $45 UCC, $100 ER, $100 Adv. Imaging) 2010 Wellness Plan For all Active employees of the City of Muskegon The City of Muskegon would first like to thank the Union and Non-Union employees who participated on the Wellness Committee. It has taken many hours and discussion to come up with this plan. The Wellness Committee was presented with much information and a number of options to choose from. They have designed the following 2010 Wellness Plan that will be effective June 1, 2010. The goal of the plan is to encourage employees and their dependents to follow healthy lifestyles so that health insurance costs for both the City and the employee can be controlled. Wellness Timeline Apr ’10 May ‘10 Jun ‘10—Dec ‘10 Jan ‘11—Apr ‘11 May ‘11 Jun ‘11 1 2 3 4 5 6 1 April 1—April 30, 2010, Employees complete WebMD HealthQuotient online 2 May 1, 2010, Priority Health runs report to show who completed HealthQuotient (HQ). Those who do not complete the HQ will be responsible for the first $500 Individual deductible/ $1000 Family deductible beginning June 1, 2010. 3 June 1, 2010 Plan effective date. Two plans will be set up. Plan 1 is for those that completed HQ and the City will pay 100% of the $1000 Individual / $2000 Family deductible. Plan 2 is for those who did not complete HQ and the employee will be responsible for the first $500 In- dividual /$1000 Family deductible. 4 Prepare for June 1, 2011 renewal. All employees have the option again to participate in the Wellness Plan. During this timeframe, employees will need to complete all 4 categories. Those who do not complete these categories by April 30, 2011 will be responsible for the first $500 Individual /$1000 Family deductible. 5 May 1, 2011, Priority Health will run report to determine those who completed all 4 categories. Those who did not complete the 4 categories will be responsible for the first $500 Individual / $1000 Family Deductible beginning June 1, 2011. 6 June 1, 2011 Plan effective date. Two plans will be set up. Plan 1 is for those that completed the 4 Categories and the City will pay 100% of the $1000 Individual/$2000 Family deducti- ble. Plan 2 is for those who did not complete the 4 Categories and the employee will be re- sponsible for the first $500 Individual/$1000 Family deductible. The following are the 4 Categories: 1. Complete Online WebMD HealthQuotient Don’t forget to mark these dates down 2. Visit your Primary Care Physician—Physical Exam once every 2 years. in your calendar! 3. Participate in Disease Management Requirements, if applicable 4. Complete 1 of 4 Rewardable Actions: • NOVEMBER & DECEMBER—HOLD IT FOR A. Weight Assessment THE HOLIDAYS, EXTRA INCENTIVES IF YOU B. Stress Assessment PARTICIPATE! C. Exercise Program (Phase 1) D. Tobacco Cessation (Phase 1) • JANUARY—WORKSITE CLASS Should you have any questions, please contact one of the following people: • FEBRUARY—WORKSITE CLASS Your Union Representative; or Kathy Coleman, 724-6713; or • MARCH—WORKSITE CLASS Julie Balgooyen, Agent 726-4046 Sincerely, • APRIL & MAY—PEDOMETER CHALLENGE, EXTRA INCENTIVES IF YOU PARTICIPATE Tim Paul, Finance Director City Commission Meeting Tuesday February March 9, 2010 TO: Honorable Mayor and City Commissioners FROM: Anthony L. Kleibecker, Director of Public Safety DATE: March 3, 2010 SUBJECT: Project Safe Neighborhood Subaward Agreement ________________________________________________________________________ Summary of Request: The United States Department of Justice, Office of Justice Programs, has awarded the Muskegon Police Department a $5,000 grant under the auspices of Project Safe Neighborhoods (PSN). PSN is a nationwide, anti-gun initiative. We have been a member of the PSN Federal Taskforce since its inception. The award money will be utilized to purchase a ProHD CCD Camcorder with accessories. This camcorder will be used to aid us in processing crime scenes. The award is being administered by Grand Valley State University, who serves as the Primary Awardee. The Director of Public Safety is asking that you authorize him to sign the appropriate grant award documents. Financial Impact: None. No matching funds are required. Budget Action Required: None Staff Recommendation: Authorize the Director of Public Safety to enter into the agreement. Date: March 9, 2010 To: Honorable Mayor and City Commissioners From: Engineering RE: City – MDOT Agreement for the Bridge Work on US-31BR over the South Branch of the Muskegon River SUMMARY OF REQUEST: To approve the attached contract with MDOT for the decks reconstruction of the two bridges on US-31BR over the south branch of the Muskegon River and to approve the attached resolution authorizing the Mayor and City Clerk to sign the contracts. FINANCIAL IMPACT: The City’s required participation on this MDOT project is expected to be $98,900. BUDGET ACTION REQUIRED: This project needs to be incorporated into the 2010 CIP budget STAFF RECOMMENDATION: Approve the attached contract and resolution and authorize 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 DEEP OVERLAY OF BOTH BRIDGES ON US-31BR OVER THE SOUTH BRANCH OF THE MUSKEGON RIVER. 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. 09-5107 between the Michigan Department of Transportation and the City of Muskegon for the deep overlay of both bridges on US-31BR over the south branch of the Muskegon River within the City is in the best interests of the City of Muskegon. RESOLVED, that entry by the City into Contract Agreement Number 09-5107 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: March 9, 2010 To: Honorable Mayor and City Commissioners From: Ann Marie Becker, City Clerk RE: Fireworks Display Permit for West Michigan Burnerz SUMMARY OF REQUEST: West Michigan Burnerz is requesting approval of a fireworks display permit for March 12, 2010 at the L. C. Walker Arena during the Hockey Game. Fire Marshall Metcalf has reviewed the request and recommends approval contingent on inspection of the fireworks and approval of the insurance. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval contingent on inspection of the fireworks and approval of the insurance. Date: March 9, 2010 To: Honorable Mayor and City Commissioners From: Ann Marie Becker, City Clerk RE: Recommendation for Annual Renewal of Liquor Licenses SUMMARY OF REQUEST: To adopt a resolution recommending non- renewal of those liquor license establishments who are in violation of Section 50-146 and 50-147 of the Code of Ordinances for the City of Muskegon. These establishments have been found to be in non- compliance with the City Code of Ordinances and renewal of their liquor licenses should not be recommended by the City Commission. If any of these establishments come into compliance by March 22, 2010, they will be removed from this resolution, and recommendation for their renewal will be forwarded to the Liquor Control Commission. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Adoption of the resolution. RESOLUTION RECOMMENDING STATE WITHHOLD RENEWAL OF LIQUOR LICENSES FOR CODE VIOLATIONS Resolution No. THE CITY COMMISSION OF THE CITY OF MUSKEGON DO RESOLVE, that whereas, the attached business establishments in the City of Muskegon have liquor licenses and are found to be in violation of Article V, Section 50-146 and 50-147 of the Code of Ordinances of the City of Muskegon: AND WHEREAS, a hearing was held on March 9, 2010, before the City Commission to allow such licensees an opportunity to refute the determination of the City Commission that such establishments are in non-compliance with the City Code of Ordinances and renewal of their liquor licenses should not be recommended by the City Commission; and WHEREAS, an affidavit of mailing of Notices of Hearing and Notification of Non- Compliance to City Standards to the licensees has been filed; NOW, THEREFORE, BE IT RESOLVED, that the City Commission of the City of Muskegon hereby recommends that these liquor licenses not be approved for renewal, and a copy of this Resolution be sent to the State Liquor Control Commission. If any of these establishments come into compliance before March 22, 2010, they will be removed from this Resolution. Approved and adopted this 9th day of March, 2010. AYES: NAYS: ABSENT: By:_________________________________ Ann Marie Becker, MMC City Clerk Name Address Money Occupancy Application Business Owed Permit and Fee Registered Captain Jack's Bar & Grill 1601 Beach X X Daniels Concessions 2300 Henry X X Dockers Fish House & Lounge 3505 Marina View Pt. X Dreamer's 978 Pine X X Express Lane 812 W. Laketon X Express Mart 1992 S. Getty X X Ghezzi's Market 2017 Lakeshore X Harbour Towne Yacht Club 3425 Fulton X Holiday Inn 939 Third X Lakeshore Tavern 1963 Lakeshore X X X Los Amigos, Inc. 1848 E. Sherman, Suite M X Muskegon Athletic Club 333 Western, Suite B X X Muskegon Country Club 2801 Lakeshore X Muskegon Recreation Club 1763 Lakeshore X X X Pat's Roadhouse 157 S. Getty X Polish Roman Catholic Union of America 1890 Henry X The Flamingo II 1161 - 1163 E. Laketon X X The Frauenthal Center 413 - 415 W. Western X The Old Clover Bar 817 Forest X X X The Sand Bar 1031 W. Laketon X Walgreen's 1000 S. Getty X X Walgreen's 840 W. Sherman X X Westside Inn 1635 Beidler X Date: March 9, 2010 To: Honorable Mayor and City Commissioners From: Engineering RE: Consideration of Bids for: B-241 Heritage Landing Bike Path Extension SUMMARY OF REQUEST: Award the Heritage Landing Bike Path Extension project to Accurate Excavators out of Muskegon since they were the lowest responsible bidder with a total bid price of $43,140.00 (without prevailing wages), see attached bid tabulation. FINANCIAL IMPACT: The construction cost of $43,140.00 plus engineering which is estimated at an additional 10%. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Award the construction project to Muskegon Quality Builders. COMMITTEE RECOMMENDATION: C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\CONAWA 03-09-10.doc B-241 HERITAGE LANDING BIKE PATH EXTENSION 1 OF 1 BID PROPOSAL 02/23/10 CONTRACTOR ACCURATE EXCAVATORS WEST MICHIGAN DIRT WORKS STEIN CONSTRUCTION CO AL'S EXCAVATING INC THOMPSON BROS., INC. HALLACK CONTRACTING McCORMICK SAND INC. WOOD TRUCKING CO ADDRESS 2821 CENTRAL RD. 13979 STATE RD PO BOX 31 4515 134TH AVE 388 W. MCMILLAN RD. 4223 W POLK RD 5430 RUSSELL RD. 2075 PARK ST CITY/ST/ZIP ENGINEERS ESTIMATE MUSKEGON, MI 49445 NUNICA MI 49448 RAVENNA MI 49451 HAMILTON MI 49419 TWIN LAKE, MI 49445 HART MI 49420 TWIN LAKE, MI 49457 MUSKEGON MI 49444 ITEM OF WORK - WITH PREVAILING WAGE UNIT QTY UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE 1 Mobilization, Max. $1,000 LS 1.00 $ 2,000.00 2,000.00 $ 301.54 301.54 $ 1,000.00 1,000.00 $ 1,000.00 1,000.00 $ 1,000.00 1,000.00 $ 1,000.00 1,000.00 $ 1,000.00 1,000.00 $ 940.00 940.00 $ 500.00 500.00 2 Landscape Grading Acre 0.25 $ 5,000.00 1,250.00 $ 9,700.00 2,425.00 $ 4,000.00 1,000.00 $ 10,000.00 2,500.00 $ 6,000.00 1,500.00 $ 13,200.00 3,300.00 $ 4,000.00 1,000.00 $ 1.00 0.25 $ 1,200.00 300.00 3 Tree, Rem, 6 inch to 18 inch Ea 19.00 $ 150.00 2,850.00 $ 50.00 950.00 $ 70.18 1,333.42 $ 75.00 1,425.00 $ 200.00 3,800.00 $ 75.00 1,425.00 $ 125.00 2,375.00 $ 100.00 1,900.00 $ 75.00 1,425.00 4 Tree, Rem, 3 inch to 5 inch Ea 14.00 $ 100.00 1,400.00 $ 54.00 756.00 $ 47.61 666.54 $ 75.00 1,050.00 $ 75.00 1,050.00 $ 50.00 700.00 $ 75.00 1,050.00 $ 50.00 700.00 $ 30.00 420.00 5 Embankment, CIP Cyd 400.00 $ 4.50 1,800.00 $ 4.05 1,620.00 $ 10.00 4,000.00 $ 12.00 4,800.00 $ 7.50 3,000.00 $ 8.00 3,200.00 $ 4.00 1,600.00 $ 6.50 2,600.00 $ 5.00 2,000.00 6 Aggregate Base, 6 inch Syd 1500.00 $ 5.00 7,500.00 $ 5.10 7,650.00 $ 3.75 5,625.00 $ 9.57 14,355.00 $ 6.00 9,000.00 $ 4.16 6,240.00 $ 5.60 8,400.00 $ 2.93 4,395.00 $ 7.00 10,500.00 7 Aggregate Base, 8 inch Syd 250.00 $ 5.50 1,375.00 $ 5.20 1,300.00 $ 6.00 1,500.00 $ 11.00 2,750.00 $ 6.50 1,625.00 $ 5.60 1,400.00 $ 7.50 1,875.00 $ 3.94 985.00 $ 8.00 2,000.00 8 Sewer, CPE, 8 inch Ft 65.00 $ 10.00 650.00 $ 9.00 585.00 $ 5.00 325.00 $ 16.50 1,072.50 $ 10.00 650.00 $ 25.00 1,625.00 $ 20.00 1,300.00 $ 10.00 650.00 $ 20.00 1,300.00 9 Dr Structure Cover, Adj, Case 1 Ea 1.00 $ 250.00 250.00 $ 150.00 150.00 $ 80.00 80.00 $ 550.00 550.00 $ 400.00 400.00 $ 250.00 250.00 $ 200.00 200.00 $ 150.00 150.00 $ 175.00 175.00 10 Dr Structure, Polyethylene Ea 1.00 $ 500.00 500.00 $ 300.00 300.00 $ 160.00 160.00 $ 450.00 450.00 $ 300.00 300.00 $ 1,200.00 1,200.00 $ 1,100.00 1,100.00 $ 250.00 250.00 $ 120.00 120.00 11 HMA, 13A Ton 145.00 $ 75.00 10,875.00 $ 70.00 10,150.00 $ 65.85 9,548.25 $ 73.00 10,585.00 $ 62.00 8,990.00 $ 65.00 9,425.00 $ 65.85 9,548.25 $ 65.85 9,548.25 $ 67.00 9,715.00 12 HMA, 36A Ton 120.00 $ 75.00 9,000.00 $ 77.00 9,240.00 $ 73.40 8,808.00 $ 82.00 9,840.00 $ 66.00 7,920.00 $ 73.00 8,760.00 $ 73.40 8,808.00 $ 73.40 8,808.00 $ 75.00 9,000.00 13 24 inch Mountable Concrete Curb & Gutter Ft 175.00 $ 10.00 1,750.00 $ 21.00 3,675.00 $ 26.42 4,623.50 $ 22.00 3,850.00 $ 17.00 2,975.00 $ 20.00 3,500.00 $ 17.00 2,975.00 $ 16.80 2,940.00 $ 20.00 3,500.00 14 Bicycle Path, Grading, Modified Ft 1214.14 $ 3.00 3,642.42 $ 1.85 2,246.16 $ 26.35 31,992.59 $ 5.68 6,896.32 $ 9.00 10,927.26 $ 7.07 8,583.97 $ 17.00 20,640.38 $ 7.88 9,567.42 $ 0.85 1,032.02 15 Post, Wood, 4 inch by 6 inch Ft 11.00 $ 18.00 198.00 $ 6.30 69.30 $ 4.54 49.94 $ 12.00 132.00 $ 10.00 110.00 $ 25.00 275.00 $ 10.00 110.00 $ 5.00 55.00 $ 6.00 66.00 16 Sign, Type IIIB Sft 2.00 $ 17.00 34.00 $ 41.80 83.60 $ 25.00 50.00 $ 125.00 250.00 $ 25.00 50.00 $ 100.00 200.00 $ 20.00 40.00 $ 25.00 50.00 $ 30.00 60.00 17 Sodding Syd 1100.00 $ 6.00 6,600.00 $ 3.80 4,180.00 $ 3.63 3,993.00 $ 3.30 3,630.00 $ 2.00 2,200.00 $ 3.60 3,960.00 $ 2.50 2,750.00 $ 3.60 3,960.00 $ 3.70 4,070.00 18 Topsoil Surface, Salv, 3 inch Syd 1100.00 $ 2.00 2,200.00 $ 0.70 770.00 $ 7.50 8,250.00 $ 0.82 902.00 $ 1.50 1,650.00 $ 0.50 550.00 $ 1.50 1,650.00 $ 1.00 1,100.00 $ 1.20 1,320.00 19 Seeding, Mixture TGM, Modified Syd 1100.00 $ 3.00 3,300.00 $ 1.40 1,540.00 $ 1.09 1,199.00 $ 1.70 1,870.00 $ 1.50 1,650.00 $ 0.81 891.00 $ 3.00 3,300.00 $ 2.81 3,091.00 $ 1.85 2,035.00 20 Conduit, Schedule 40, 5 inch Ft 84.00 $ 7.00 588.00 $ 8.85 743.40 $ 4.00 336.00 $ 14.00 1,176.00 $ 9.00 756.00 $ 15.00 1,260.00 $ 10.00 840.00 $ 9.00 756.00 $ 5.00 420.00 TOTAL - WITH PREVAILING WAGE $ 57,762.42 $ 48,735.00 CALC ERR $ 84,540.24 $ 69,083.82 $ 59,553.26 $ 57,744.97 $ 70,561.63 $ 52,445.92 $ 49,958.02 CONTRACTOR ACCURATE EXCAVATORS WEST MICHIGAN DIRT WORKS STEIN CONSTRUCTION CO AL'S EXCAVATING INC THOMPSON BROS., INC. HALLACK CONTRACTING McCORMICK SAND INC. THOMPSON BROS., INC. ADDRESS 2821 CENTRAL RD. 13979 STATE RD PO BOX 31 4515 134TH AVE 388 W. MCMILLAN RD. 4223 W POLK RD 5430 RUSSELL RD. 388 W. MCMILLAN RD. CITY/ST/ZIP ENGINEERS ESTIMATE MUSKEGON, MI 49445 NUNICA MI 49448 RAVENNA MI 49451 HAMILTON MI 49419 TWIN LAKE, MI 49445 HART MI 49420 TWIN LAKE, MI 49457 TWIN LAKE, MI 49445 ITEM OF WORK - WITHOUT PREVAILING WAGE UNIT QTY UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE 1 Mobilization, Max. $1,000 LS 1.00 $ 298.36 298.36 $ 1,000.00 1,000.00 $ 1,000.00 1,000.00 $ 1,000.00 1,000.00 $ 1,000.00 1,000.00 $ 1,000.00 1,000.00 $ 940.00 940.00 $ 500.00 500.00 2 Landscape Grading Acre 0.25 $ 7,100.00 1,775.00 $ 3,000.00 750.00 $ 10,000.00 2,500.00 $ 5,500.00 1,375.00 $ 9,000.00 2,250.00 $ 4,000.00 1,000.00 $ 1.00 0.25 $ 1,000.00 250.00 3 Tree, Rem, 6 inch to 18 inch Ea 19.00 $ 40.00 760.00 $ 70.18 1,333.42 $ 70.00 1,330.00 $ 195.00 3,705.00 $ 65.00 1,235.00 $ 125.00 2,375.00 $ 80.00 1,520.00 $ 75.00 1,425.00 4 Tree, Rem, 3 inch to 5 inch Ea 14.00 $ 45.00 630.00 $ 47.61 666.54 $ 70.00 980.00 $ 70.00 980.00 $ 40.00 560.00 $ 75.00 1,050.00 $ 40.00 560.00 $ 30.00 420.00 5 Embankment, CIP Cyd 400.00 $ 4.05 1,620.00 $ 10.00 4,000.00 $ 11.00 4,400.00 $ 7.50 3,000.00 $ 6.50 2,600.00 $ 4.00 1,600.00 $ 6.50 2,600.00 $ 5.00 2,000.00 DATA NOT AVAILABLE 6 Aggregate Base, 6 inch Syd 1500.00 $ 4.75 7,125.00 $ 3.75 5,625.00 $ 8.57 12,855.00 $ 5.60 8,400.00 $ 4.16 6,240.00 $ 5.60 8,400.00 $ 2.93 4,395.00 $ 6.00 9,000.00 7 Aggregate Base, 8 inch Syd 250.00 $ 4.70 1,175.00 $ 6.00 1,500.00 $ 10.00 2,500.00 $ 6.25 1,562.50 $ 5.60 1,400.00 $ 7.50 1,875.00 $ 3.94 985.00 $ 8.00 2,000.00 8 Sewer, CPE, 8 inch Ft 65.00 $ 8.00 520.00 $ 5.00 325.00 $ 15.00 975.00 $ 9.00 585.00 $ 20.00 1,300.00 $ 20.00 1,300.00 $ 8.00 520.00 $ 15.00 975.00 9 Dr Structure Cover, Adj, Case 1 Ea 1.00 $ 125.00 125.00 $ 80.00 80.00 $ 500.00 500.00 $ 395.00 395.00 $ 250.00 250.00 $ 200.00 200.00 $ 100.00 100.00 $ 150.00 150.00 10 Dr Structure, Polyethylene Ea 1.00 $ 275.00 275.00 $ 160.00 160.00 $ 400.00 400.00 $ 300.00 300.00 $ 1,000.00 1,000.00 $ 1,000.00 1,000.00 $ 250.00 250.00 $ 100.00 100.00 11 HMA, 13A Ton 145.00 $ 66.00 9,570.00 $ 62.81 9,107.45 $ 68.00 9,860.00 $ 62.00 8,990.00 $ 62.00 8,990.00 $ 62.81 9,107.45 $ 62.81 9,107.45 $ 64.00 9,280.00 12 HMA, 36A Ton 120.00 $ 72.50 8,700.00 $ 69.10 8,292.00 $ 75.00 9,000.00 $ 66.00 7,920.00 $ 69.00 8,280.00 $ 69.10 8,292.00 $ 69.10 8,292.00 $ 70.50 8,460.00 13 24 inch Mountable Concrete Curb & Gutter Ft 175.00 $ 16.60 2,905.00 $ 16.42 2,873.50 $ 18.00 3,150.00 $ 15.00 2,625.00 $ 16.00 2,800.00 $ 14.00 2,450.00 $ 13.60 2,380.00 $ 20.00 3,500.00 14 Bicycle Path, Grading, Modified Ft 1214.14 $ 1.35 1,639.09 $ 20.59 24,999.14 $ 4.62 5,609.33 $ 8.00 9,713.12 $ 6.30 7,649.08 $ 13.50 16,390.89 $ 6.04 7,333.41 $ 0.65 789.19 15 Post, Wood, 4 inch by 6 inch Ft 11.00 $ 4.45 48.95 $ 4.54 49.94 $ 10.00 110.00 $ 10.00 110.00 $ 25.00 275.00 $ 10.00 110.00 $ 5.00 55.00 $ 5.00 55.00 16 Sign, Type IIIB Sft 2.00 $ 31.80 63.60 $ 25.00 50.00 $ 100.00 200.00 $ 25.00 50.00 $ 100.00 200.00 $ 20.00 40.00 $ 25.00 50.00 $ 30.00 60.00 17 Sodding Syd 1100.00 $ 3.30 3,630.00 $ 3.18 3,498.00 $ 3.00 3,300.00 $ 2.00 2,200.00 $ 3.15 3,465.00 $ 2.25 2,475.00 $ 3.15 3,465.00 $ 3.25 3,575.00 18 Topsoil Surface, Salv, 3 inch Syd 1100.00 $ 0.50 550.00 $ 5.00 5,500.00 $ 0.75 825.00 $ 1.25 1,375.00 $ 0.34 374.00 $ 1.25 1,375.00 $ 0.75 825.00 $ 1.00 1,100.00 19 Seeding, Mixture TGM, Modified Syd 1100.00 $ 1.00 1,100.00 $ 1.00 1,100.00 $ 1.50 1,650.00 $ 1.50 1,650.00 $ 0.63 693.00 $ 2.75 3,025.00 $ 2.13 2,343.00 $ 1.65 1,815.00 20 Conduit, Schedule 40, 5 inch Ft 84.00 $ 7.50 630.00 $ 4.00 336.00 $ 12.00 1,008.00 $ 8.50 714.00 $ 15.00 1,260.00 $ 9.00 756.00 $ 8.00 672.00 $ 5.00 420.00 TOTAL - WITHOUT PREVAILING WAGE *11% less $ 43,140.00 CALC ERR $ 71,245.99 *10% less $ 62,152.33 *5% less $ 56,649.62 *10% less $ 51,821.08 *10% less $ 63,821.34 *12% less $ 46,393.11 *8% less $ 45,874.19 * PERCENTAGE OF AMOUNT LESS "WITHOUT PREVAILING WAGE" THAN "WITH PREVAILING WAGE" Date: March 9, 2010 To: Honorable Mayor and City Commissioners From: Finance Director RE: Water Bond Refunding SUMMARY OF REQUEST: You may recall that in January 2009 the City Commission adopted an ordinance to initiate and authorize the refunding of Series 1999 and Series 1993 water revenue bonds. However, interest rates did not cooperate and the refunding was deemed uneconomical before it could be completed. Interest rates are again favorable and a recent analysis shows that these bonds can be refunded with projected present value savings to the City of $299,017. This equates to 4.80% 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: 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’ water fund budgets. STAFF RECOMMENDATION: Adoption of the attached ordinance which amends the original Commission action and authorizes staff to execute documents to sell the water refunding bonds. COMMITTEE RECOMMENDATION: None. 1 ORDINANCE NO. _______ AN ORDINANCE TO SUPPLEMENT AND AMEND ORDINANCE NO. 2259 OF THE CITY OF MUSKEGON ENTITLED: “AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF REVENUE BONDS FOR THE PURPOSE OF PAYING THE COST OF REFUNDING THE CITY’S WATER SUPPLY SYSTEM REVENUE BONDS, SERIES 1993, AND THE CITY’S WATER SUPPLY SYSTEM REVENUE REFUNDING BONDS, SERIES 1999; TO PROVIDE FOR THE COLLECTION OF REVENUES FROM THE SYSTEM SUFFICIENT FOR THE PURPOSE OF PAYING THE COSTS OF OPERATION AND MAINTENANCE OF THE SYSTEM AND TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS AND CERTAIN OUTSTANDING BONDS OF THE SYSTEM; TO PROVIDE AN ADEQUATE RESERVE FUND FOR THE BONDS AND OUTSTANDING BONDS OF THE SYSTEM; TO PROVIDE FOR THE SEGREGATION AND DISTRIBUTION OF THE REVENUES; TO PROVIDE FOR THE RIGHTS OF THE HOLDERS OF THE BONDS AND OUTSTANDING BONDS OF THE SYSTEM IN ENFORCEMENT THEREOF; AND TO PROVIDE FOR OTHER MATTERS RELATING TO THE SYSTEM AND THE BONDS AND OUTSTANDING BONDS OF THE SYSTEM.” TO PROVIDE FOR REVISION OF THE SERIES DESIGNATION OF THE BONDS, TO AUTHORIZE A NEGOTIATED METHOD OF SALE, AND TO DELEGATE CERTAIN RESPONSIBILITIES TO OFFICERS OF THE CITY. THE CITY OF MUSKEGON ORDAINS: Section 1. Amendment of Section 1(b). Section 1(b) of Ordinance No. 2259 is hereby amended to read as follows: Section 1. Definitions. Whenever used in this Ordinance, except when otherwise indicated by the context, the following terms shall have the following meanings: * * * (b) “Bonds” mean the Series 2010 Bonds, and any additional Bonds of equal standing hereafter issued. Section 2. Amendment of Section 1(i). Section 1(i) of Ordinance No. 2259 is hereby amended to read as follows: Section 1. Definitions. Whenever used in this Ordinance, except when otherwise indicated by the context, the following terms shall have the following meanings: * * * (i) “Series 2010 Bonds” means the Water Supply System Revenue Refunding Bonds, Series 2010 of the Issuer authorized by this Ordinance. Section 3. Amendment of Section 1(k). Section 1(k) of Ordinance No. 2259 is hereby amended to read as follows: Section 1. Definitions. Whenever used in this Ordinance, except when otherwise indicated by the context, the following terms shall have the following meanings: * * * (k) “Sales Resolution” means either a Sales Resolution to be adopted by the Issuer or a Sale Order to be executed by one or more authorized officers of the Issuer respecting the sale of the Series 2010 Bonds. Section 4. Amendment of Section 13. Section 13 of Ordinance No. 2259 is hereby amended in its entirety to read as follows: Section 13. Sale of Bonds; Appointment of Underwriter; Authorization for Negotiated Sale, Bond Purchase Agreement and Award; Adjustment of Bond Details; Other Matters. In order to achieve efficiencies of sale and market timing in a volatile bond market it is determined that the City’s best interest will be served by negotiating the sale of the Series 2010 Bonds. Robert W. Baird & Co. has proposed to purchase and underwrite the issuance of the Bonds and is hereby designated and appointed as underwriter for the offering of the Bonds (the “Underwriter”). The City Manager and Finance Director (each an “Authorized Officer”) are each hereby authorized to negotiate and execute a bond purchase agreement (the “Bond Purchase Agreement”) with the Underwriter as purchaser or representative of the purchasers, execute a Sale Order authorizing the sale of the Bonds to the Underwriter, and to take all other necessary actions required to effectuate the sale, issuance and delivery of the Bonds within the parameters authorized in this Ordinance. 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 each is authorized to exercise the authority and make the determinations pursuant to Sections 7a(1)(c)(v) of Act 94, including but not limited to determinations regarding interest rates, prices, discounts, maturities, principal amounts, denominations, date of issuance, interest payment dates, redemption rights and other matters and procedures necessary to 2 issue and deliver the Bonds within the parameters established by this Ordinance. The Authorized Officers are each authorized and directed to negotiate, approve and execute an escrow agreement with the Escrow Agent, including the appointment of the Escrow Agent and establishment of the amounts of escrows therein provided. The Authorized Officers are each authorized and directed to appoint a Transfer Agent for the Bonds. 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) solicit bids for and approve the purchase of a municipal bond insurance policy for the Bonds; (c) apply for ratings on 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. Section 5. Severability; Paragraph Headings; and Conflict. If any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. The paragraph headings in this Ordinance are furnished for convenience of reference only and shall not be considered to be part of this Ordinance. Section 6. Publication and Recordation. This Ordinance shall be published in full in The Muskegon Chronicle, a newspaper of general circulation in the City, qualified under State law to publish legal notices, promptly after its adoption, and shall be recorded in the Ordinance Book of the Issuer and such recording authenticated by the signatures of the Mayor and City Clerk. Section 7. Effective Date. Pursuant to the provisions of Section 6 of Act 94, this Ordinance shall be approved on the date of first reading and accordingly this Ordinance shall immediately be effective upon its adoption. Adopted and signed this 9th day of March, 2010. Signed: Mayor Signed: City Clerk 3 I hereby certify that the foregoing constitutes a true and complete copy of an Ordinance duly adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan, at a regular Meeting held on the 9th day of March, 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 Michigan, 1976, and that the minutes of said meeting were kept and will be or have been made available as required by said Act. I further certify that the following Members were present at said meeting: and that the following Members were absent: _______ . I further certify that Member _________________ moved adoption of said Ordinance, and that said motion was supported by Member . I further certify that the following Members voted for adoption of said Ordinance: and that the following Members voted against adoption of said Ordinance: . I further certify that said Ordinance has been recorded in the Ordinance Book and that such recording has been authenticated by the signatures of the Mayor and City Clerk. City Clerk 17,759,498.1\063684-00036 4 City of Muskegon Water Supply System Revenue Refunding Bonds, Series 2010 Refunding of 1993 and 1999 Bonds Dated: March 29, 2010 Table of Contents Report ISSUE SUMMARY Total Issue Sources And Uses.......................................................................................................................................... 1 Debt Service Schedule..................................................................................................................................................... 2 Debt Service Comparison................................................................................................................................................ 4 Pricing Summary.............................................................................................................................................................. 6 REFUND 99 Debt Service To Maturity And To Call.............................................................................................................................. 7 Current Refunding Escrow............................................................................................................................................... 8 Debt Service Schedule..................................................................................................................................................... 9 Debt Service Comparison................................................................................................................................................ 11 Current Outstanding Debt Service................................................................................................................................... 13 REFUND 93 Debt Service To Maturity And To Call.............................................................................................................................. 14 Current Refunding Escrow............................................................................................................................................... 15 Debt Service Schedule..................................................................................................................................................... 16 Debt Service Comparison................................................................................................................................................ 17 Robert W. Baird & Co. Traverse City Public Finance City of Muskegon Water Supply System Revenue Refunding Bonds, Series 2010 Refunding of 1993 and 1999 Bonds Dated: March 29, 2010 Total Issue Sources And Uses Dated 03/29/2010 | Delivered 03/29/2010 Refund 99 Refund 93 Issue Summary Sources Of Funds Par Amount of Bonds........................................................... $5,265,000.00 $920,000.00 $6,185,000.00 Transfers from Prior Issue Debt Service Funds.................... 96,785.83 16,650.00 113,435.83 Total Sources................................................................... $5,361,785.83 $936,650.00 $6,298,435.83 Uses Of Funds Deposit to Current Refunding Fund..................................... 5,247,522.73 920,216.73 6,167,739.46 Total Underwriter's Discount (1.000%)............................... 52,650.00 9,200.00 61,850.00 Bond Counsel....................................................................... 37,029.51 6,470.49 43,500.00 Rating Agency Fee................................................................ 7,235.65 1,264.35 8,500.00 Treasury, Publications and Miscellaneous........................... 4,256.27 743.73 5,000.00 POS/Official Statement........................................................ 3,830.64 669.36 4,500.00 Verification Agent................................................................ 2,128.13 371.87 2,500.00 Rounding Amount................................................................ 4,791.95 (2,695.58) 2,096.37 Auditor's Consent................................................................. 1,276.88 223.12 1,500.00 Escrow Agent....................................................................... 638.44 111.56 750.00 Paying Agent........................................................................ 425.63 74.37 500.00 Total Uses........................................................................ $5,361,785.83 $936,650.00 $6,298,435.83 Robert W. Baird & Co. Traverse City Public Finance Page 1 City of Muskegon Water Supply System Revenue Refunding Bonds, Series 2010 Refunding of 1993 and 1999 Bonds Dated: March 29, 2010 Debt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+I Fiscal Total 03/29/2010 ‐ ‐ ‐ ‐ ‐ 11/01/2010 ‐ ‐ 97,944.00 97,944.00 ‐ 12/31/2010 ‐ ‐ ‐ ‐ 97,944.00 05/01/2011 620,000.00 1.300% 83,160.00 703,160.00 ‐ 11/01/2011 ‐ ‐ 79,130.00 79,130.00 ‐ 12/31/2011 ‐ ‐ ‐ ‐ 782,290.00 05/01/2012 630,000.00 1.700% 79,130.00 709,130.00 ‐ 11/01/2012 ‐ ‐ 73,775.00 73,775.00 ‐ 12/31/2012 ‐ ‐ ‐ ‐ 782,905.00 05/01/2013 640,000.00 1.950% 73,775.00 713,775.00 ‐ 11/01/2013 ‐ ‐ 67,535.00 67,535.00 ‐ 12/31/2013 ‐ ‐ ‐ ‐ 781,310.00 05/01/2014 665,000.00 2.250% 67,535.00 732,535.00 ‐ 11/01/2014 ‐ ‐ 60,053.75 60,053.75 ‐ 12/31/2014 ‐ ‐ ‐ ‐ 792,588.75 05/01/2015 680,000.00 2.650% 60,053.75 740,053.75 ‐ 11/01/2015 ‐ ‐ 51,043.75 51,043.75 ‐ 12/31/2015 ‐ ‐ ‐ ‐ 791,097.50 05/01/2016 700,000.00 3.050% 51,043.75 751,043.75 ‐ 11/01/2016 ‐ ‐ 40,368.75 40,368.75 ‐ 12/31/2016 ‐ ‐ ‐ ‐ 791,412.50 05/01/2017 725,000.00 3.350% 40,368.75 765,368.75 ‐ 11/01/2017 ‐ ‐ 28,225.00 28,225.00 ‐ 12/31/2017 ‐ ‐ ‐ ‐ 793,593.75 05/01/2018 750,000.00 3.600% 28,225.00 778,225.00 ‐ 11/01/2018 ‐ ‐ 14,725.00 14,725.00 ‐ 12/31/2018 ‐ ‐ ‐ ‐ 792,950.00 05/01/2019 775,000.00 3.800% 14,725.00 789,725.00 ‐ 12/31/2019 ‐ ‐ ‐ ‐ 789,725.00 Total $6,185,000.00 ‐ $1,010,816.50 $7,195,816.50 ‐ Robert W. Baird & Co. Traverse City Public Finance Page 2 City of Muskegon Water Supply System Revenue Refunding Bonds, Series 2010 Refunding of 1993 and 1999 Bonds Dated: March 29, 2010 Debt Service Schedule Part 2 of 2 Yield Statistics Bond Year Dollars........................................................................................................................................... $32,659.78 Average Life.................................................................................................................................................... 5.280 Years Average Coupon............................................................................................................................................. 3.0949889% Net Interest Cost (NIC)................................................................................................................................... 3.2843656% True Interest Cost (TIC).................................................................................................................................. 3.2825392% Bond Yield for Arbitrage Purposes................................................................................................................. 3.0722328% All Inclusive Cost (AIC).................................................................................................................................... 3.5128461% IRS Form 8038 Net Interest Cost............................................................................................................................................ 3.0949889% Weighted Average Maturity........................................................................................................................... 5.280 Years Robert W. Baird & Co. Traverse City Public Finance Page 3 City of Muskegon Water Supply System Revenue Refunding Bonds, Series 2010 Refunding of 1993 and 1999 Bonds Dated: March 29, 2010 Debt Service Comparison Part 1 of 2 Date Total P+I Non‐Refunded Total Old Net D/S Savings Fiscal Total 03/29/2010 ‐ ‐ (2,096.37) (113,435.83) (111,339.46) ‐ 05/01/2010 ‐ 546,235.00 546,235.00 684,197.50 137,962.50 ‐ 11/01/2010 97,944.00 ‐ 97,944.00 137,962.50 40,018.50 ‐ 12/31/2010 ‐ ‐ ‐ ‐ ‐ 66,641.54 05/01/2011 703,160.00 ‐ 703,160.00 692,962.50 (10,197.50) ‐ 11/01/2011 79,130.00 ‐ 79,130.00 126,030.00 46,900.00 ‐ 12/31/2011 ‐ ‐ ‐ ‐ ‐ 36,702.50 05/01/2012 709,130.00 ‐ 709,130.00 706,030.00 (3,100.00) ‐ 11/01/2012 73,775.00 ‐ 73,775.00 113,077.50 39,302.50 ‐ 12/31/2012 ‐ ‐ ‐ ‐ ‐ 36,202.50 05/01/2013 713,775.00 ‐ 713,775.00 718,077.50 4,302.50 ‐ 11/01/2013 67,535.00 ‐ 67,535.00 99,542.50 32,007.50 ‐ 12/31/2013 ‐ ‐ ‐ ‐ ‐ 36,310.00 05/01/2014 732,535.00 ‐ 732,535.00 734,542.50 2,007.50 ‐ 11/01/2014 60,053.75 ‐ 60,053.75 85,255.00 25,201.25 ‐ 12/31/2014 ‐ ‐ ‐ ‐ ‐ 27,208.75 05/01/2015 740,053.75 ‐ 740,053.75 750,255.00 10,201.25 ‐ 11/01/2015 51,043.75 ‐ 51,043.75 70,126.25 19,082.50 ‐ 12/31/2015 ‐ ‐ ‐ ‐ ‐ 29,283.75 05/01/2016 751,043.75 ‐ 751,043.75 765,126.25 14,082.50 ‐ 11/01/2016 40,368.75 ‐ 40,368.75 54,141.25 13,772.50 ‐ 12/31/2016 ‐ ‐ ‐ ‐ ‐ 27,855.00 05/01/2017 765,368.75 ‐ 765,368.75 784,141.25 18,772.50 ‐ 11/01/2017 28,225.00 ‐ 28,225.00 37,168.75 8,943.75 ‐ 12/31/2017 ‐ ‐ ‐ ‐ ‐ 27,716.25 05/01/2018 778,225.00 ‐ 778,225.00 802,168.75 23,943.75 ‐ 11/01/2018 14,725.00 ‐ 14,725.00 19,000.00 4,275.00 ‐ 12/31/2018 ‐ ‐ ‐ ‐ ‐ 28,218.75 05/01/2019 789,725.00 ‐ 789,725.00 819,000.00 29,275.00 ‐ 12/31/2019 ‐ ‐ ‐ ‐ ‐ 29,275.00 Total $7,195,816.50 $546,235.00 $7,739,955.13 $8,085,369.17 $345,414.04 ‐ Robert W. Baird & Co. Traverse City Public Finance Page 4 City of Muskegon Water Supply System Revenue Refunding Bonds, Series 2010 Refunding of 1993 and 1999 Bonds Dated: March 29, 2010 Debt Service Comparison Part 2 of 2 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings...................................................................................................................... 410,356.37 Net PV Cashflow Savings @ 3.513%(AIC)..................................................................................................... 410,356.37 Transfers from Prior Issue Debt Service Fund............................................................................................... (113,435.83) Contingency or Rounding Amount................................................................................................................ 2,096.37 Net Present Value Benefit............................................................................................................................. $299,016.91 Net PV Benefit / $6,030,000 Refunded Principal......................................................................................... 4.959% Net PV Benefit / $6,185,000 Refunding Principal........................................................................................ 4.835% Refunding Bond Information Refunding Dated Date................................................................................................................................... 3/29/2010 Refunding Delivery Date............................................................................................................................... 3/29/2010 Robert W. Baird & Co. Traverse City Public Finance Page 5 City of Muskegon Water Supply System Revenue Refunding Bonds, Series 2010 Refunding of 1993 and 1999 Bonds Dated: March 29, 2010 Pricing Summary Maturity Type of Bond Coupon Yield Maturity Value Price Dollar Price 05/01/2011 Serial Coupon 1.300% 1.300% 620,000.00 100.000% 620,000.00 05/01/2012 Serial Coupon 1.700% 1.700% 630,000.00 100.000% 630,000.00 05/01/2013 Serial Coupon 1.950% 1.950% 640,000.00 100.000% 640,000.00 05/01/2014 Serial Coupon 2.250% 2.250% 665,000.00 100.000% 665,000.00 05/01/2015 Serial Coupon 2.650% 2.650% 680,000.00 100.000% 680,000.00 05/01/2016 Serial Coupon 3.050% 3.050% 700,000.00 100.000% 700,000.00 05/01/2017 Serial Coupon 3.350% 3.350% 725,000.00 100.000% 725,000.00 05/01/2018 Serial Coupon 3.600% 3.600% 750,000.00 100.000% 750,000.00 05/01/2019 Serial Coupon 3.800% 3.800% 775,000.00 100.000% 775,000.00 Total ‐ ‐ ‐ $6,185,000.00 ‐ $6,185,000.00 Bid Information Par Amount of Bonds.................................................................................................................................. $6,185,000.00 Gross Production........................................................................................................................................ $6,185,000.00 Total Underwriter's Discount (1.000%)...................................................................................................... $(61,850.00) Bid (99.000%).............................................................................................................................................. 6,123,150.00 Total Purchase Price................................................................................................................................... $6,123,150.00 Bond Year Dollars........................................................................................................................................ $32,659.78 Average Life................................................................................................................................................ 5.280 Years Average Coupon......................................................................................................................................... 3.0949889% Net Interest Cost (NIC)................................................................................................................................ 3.2843656% True Interest Cost (TIC)............................................................................................................................... 3.2825392% Robert W. Baird & Co. Traverse City Public Finance Page 6 City of Muskegon 1999 Water Revenue and Refunding Bonds Dated: 3/2/99 Callable: 5/1/09 @ 100 Debt Service To Maturity And To Call Date Refunded Bonds Interest to Call D/S To Call Principal Coupon Interest Refunded D/S 03/29/2010 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 05/01/2010 5,130,000.00 117,712.50 5,247,712.50 ‐ 4.200% 117,712.50 117,712.50 11/01/2010 ‐ ‐ ‐ ‐ ‐ 117,712.50 117,712.50 05/01/2011 ‐ ‐ ‐ 555,000.00 4.300% 117,712.50 672,712.50 11/01/2011 ‐ ‐ ‐ ‐ ‐ 105,780.00 105,780.00 05/01/2012 ‐ ‐ ‐ 130,000.00 4.350% 105,780.00 235,780.00 11/01/2012 ‐ ‐ ‐ ‐ ‐ 102,952.50 102,952.50 05/01/2013 ‐ ‐ ‐ 155,000.00 4.400% 102,952.50 257,952.50 11/01/2013 ‐ ‐ ‐ ‐ ‐ 99,542.50 99,542.50 05/01/2014 ‐ ‐ ‐ 635,000.00 4.500% 99,542.50 734,542.50 11/01/2014 ‐ ‐ ‐ ‐ ‐ 85,255.00 85,255.00 05/01/2015 ‐ ‐ ‐ 665,000.00 4.550% 85,255.00 750,255.00 11/01/2015 ‐ ‐ ‐ ‐ ‐ 70,126.25 70,126.25 05/01/2016 ‐ ‐ ‐ 695,000.00 4.600% 70,126.25 765,126.25 11/01/2016 ‐ ‐ ‐ ‐ ‐ 54,141.25 54,141.25 05/01/2017 ‐ ‐ ‐ 730,000.00 4.650% 54,141.25 784,141.25 11/01/2017 ‐ ‐ ‐ ‐ ‐ 37,168.75 37,168.75 05/01/2018 ‐ ‐ ‐ 765,000.00 4.750% 37,168.75 802,168.75 11/01/2018 ‐ ‐ ‐ ‐ ‐ 19,000.00 19,000.00 05/01/2019 ‐ ‐ ‐ 800,000.00 4.750% 19,000.00 819,000.00 Total $5,130,000.00 $117,712.50 $5,247,712.50 $5,130,000.00 ‐ $1,501,070.00 $6,631,070.00 Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation................................................................................................. 3/29/2010 Average Life............................................................................................................................................................. 5.887 Years Average Coupon...................................................................................................................................................... 4.6497936% Weighted Average Maturity (Par Basis).................................................................................................................. 5.887 Years Refunding Bond Information Refunding Dated Date............................................................................................................................................. 3/29/2010 Refunding Delivery Date......................................................................................................................................... 3/29/2010 Robert W. Baird & Co. Traverse City Public Finance Page 7 City of Muskegon Refunding of 1999 Water Revenue and Refunding Bonds Dated: March 29, 2010 Current Refunding Escrow Date Principal Rate Interest +Transfers Receipts Disbursements Cash Balance 03/29/2010 ‐ ‐ ‐ 0.83 1.73 ‐ 1.73 05/01/2010 5,150,736.00 0.040% 186.27 96,788.50 5,247,710.77 5,247,712.50 ‐ Total $5,150,736.00 ‐ $186.27 $96,789.33 $5,247,712.50 $5,247,712.50 ‐ Investment Parameters Investment Model [PV, GIC, or Securities]................................................................................................. Securities Default investment yield target.................................................................................................................. Unrestricted Cost of Investments Purchased with Fund Transfers................................................................................. 96,785.83 Cash Deposit............................................................................................................................................... 0.90 Cost of Investments Purchased with Bond Proceeds................................................................................. 5,150,736.00 Total Cost of Investments........................................................................................................................... $5,247,522.73 Target Cost of Investments at bond yield................................................................................................... $5,136,982.49 Actual positive or (negative) arbitrage....................................................................................................... (13,754.41) Yield to Receipt........................................................................................................................................... 0.0406876% Yield for Arbitrage Purposes....................................................................................................................... 3.0722328% State and Local Government Series (SLGS) rates for.................................................................................. 2/16/2010 Robert W. Baird & Co. Traverse City Public Finance Page 8 City of Muskegon Refunding of 1999 Water Revenue and Refunding Bonds Dated: March 29, 2010 Debt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+I Fiscal Total 03/29/2010 ‐ ‐ ‐ ‐ ‐ 11/01/2010 ‐ ‐ 88,113.97 88,113.97 ‐ 12/31/2010 ‐ ‐ ‐ ‐ 88,113.97 05/01/2011 605,000.00 1.300% 74,813.75 679,813.75 ‐ 11/01/2011 ‐ ‐ 70,881.25 70,881.25 ‐ 12/31/2011 ‐ ‐ ‐ ‐ 750,695.00 05/01/2012 170,000.00 1.700% 70,881.25 240,881.25 ‐ 11/01/2012 ‐ ‐ 69,436.25 69,436.25 ‐ 12/31/2012 ‐ ‐ ‐ ‐ 310,317.50 05/01/2013 195,000.00 1.950% 69,436.25 264,436.25 ‐ 11/01/2013 ‐ ‐ 67,535.00 67,535.00 ‐ 12/31/2013 ‐ ‐ ‐ ‐ 331,971.25 05/01/2014 665,000.00 2.250% 67,535.00 732,535.00 ‐ 11/01/2014 ‐ ‐ 60,053.75 60,053.75 ‐ 12/31/2014 ‐ ‐ ‐ ‐ 792,588.75 05/01/2015 680,000.00 2.650% 60,053.75 740,053.75 ‐ 11/01/2015 ‐ ‐ 51,043.75 51,043.75 ‐ 12/31/2015 ‐ ‐ ‐ ‐ 791,097.50 05/01/2016 700,000.00 3.050% 51,043.75 751,043.75 ‐ 11/01/2016 ‐ ‐ 40,368.75 40,368.75 ‐ 12/31/2016 ‐ ‐ ‐ ‐ 791,412.50 05/01/2017 725,000.00 3.350% 40,368.75 765,368.75 ‐ 11/01/2017 ‐ ‐ 28,225.00 28,225.00 ‐ 12/31/2017 ‐ ‐ ‐ ‐ 793,593.75 05/01/2018 750,000.00 3.600% 28,225.00 778,225.00 ‐ 11/01/2018 ‐ ‐ 14,725.00 14,725.00 ‐ 12/31/2018 ‐ ‐ ‐ ‐ 792,950.00 05/01/2019 775,000.00 3.800% 14,725.00 789,725.00 ‐ 12/31/2019 ‐ ‐ ‐ ‐ 789,725.00 Total $5,265,000.00 ‐ $967,465.22 $6,232,465.22 ‐ Robert W. Baird & Co. Traverse City Public Finance Page 9 City of Muskegon Refunding of 1999 Water Revenue and Refunding Bonds Dated: March 29, 2010 Debt Service Schedule Part 2 of 2 Yield Statistics Bond Year Dollars........................................................................................................................................... $30,308.00 Average Life.................................................................................................................................................... 5.757 Years Average Coupon............................................................................................................................................. 3.1921117% Net Interest Cost (NIC)................................................................................................................................... 3.3658282% True Interest Cost (TIC).................................................................................................................................. 3.3678992% Bond Yield for Arbitrage Purposes................................................................................................................. 3.0722328% All Inclusive Cost (AIC).................................................................................................................................... 3.5810080% IRS Form 8038 Net Interest Cost............................................................................................................................................ 3.1921117% Weighted Average Maturity........................................................................................................................... 5.757 Years Robert W. Baird & Co. Traverse City Public Finance Page 10 City of Muskegon Refunding of 1999 Water Revenue and Refunding Bonds Dated: March 29, 2010 Debt Service Comparison Part 1 of 2 Date Total P+I Non‐Refunded Total Old Net D/S Savings Fiscal Total 03/29/2010 ‐ ‐ (4,791.95) (96,785.83) (91,993.88) ‐ 05/01/2010 ‐ 546,235.00 546,235.00 663,947.50 117,712.50 ‐ 11/01/2010 88,113.97 ‐ 88,113.97 117,712.50 29,598.53 ‐ 12/31/2010 ‐ ‐ ‐ ‐ ‐ 55,317.15 05/01/2011 679,813.75 ‐ 679,813.75 672,712.50 (7,101.25) ‐ 11/01/2011 70,881.25 ‐ 70,881.25 105,780.00 34,898.75 ‐ 12/31/2011 ‐ ‐ ‐ ‐ ‐ 27,797.50 05/01/2012 240,881.25 ‐ 240,881.25 235,780.00 (5,101.25) ‐ 11/01/2012 69,436.25 ‐ 69,436.25 102,952.50 33,516.25 ‐ 12/31/2012 ‐ ‐ ‐ ‐ ‐ 28,415.00 05/01/2013 264,436.25 ‐ 264,436.25 257,952.50 (6,483.75) ‐ 11/01/2013 67,535.00 ‐ 67,535.00 99,542.50 32,007.50 ‐ 12/31/2013 ‐ ‐ ‐ ‐ ‐ 25,523.75 05/01/2014 732,535.00 ‐ 732,535.00 734,542.50 2,007.50 ‐ 11/01/2014 60,053.75 ‐ 60,053.75 85,255.00 25,201.25 ‐ 12/31/2014 ‐ ‐ ‐ ‐ ‐ 27,208.75 05/01/2015 740,053.75 ‐ 740,053.75 750,255.00 10,201.25 ‐ 11/01/2015 51,043.75 ‐ 51,043.75 70,126.25 19,082.50 ‐ 12/31/2015 ‐ ‐ ‐ ‐ ‐ 29,283.75 05/01/2016 751,043.75 ‐ 751,043.75 765,126.25 14,082.50 ‐ 11/01/2016 40,368.75 ‐ 40,368.75 54,141.25 13,772.50 ‐ 12/31/2016 ‐ ‐ ‐ ‐ ‐ 27,855.00 05/01/2017 765,368.75 ‐ 765,368.75 784,141.25 18,772.50 ‐ 11/01/2017 28,225.00 ‐ 28,225.00 37,168.75 8,943.75 ‐ 12/31/2017 ‐ ‐ ‐ ‐ ‐ 27,716.25 05/01/2018 778,225.00 ‐ 778,225.00 802,168.75 23,943.75 ‐ 11/01/2018 14,725.00 ‐ 14,725.00 19,000.00 4,275.00 ‐ 12/31/2018 ‐ ‐ ‐ ‐ ‐ 28,218.75 05/01/2019 789,725.00 ‐ 789,725.00 819,000.00 29,275.00 ‐ 12/31/2019 ‐ ‐ ‐ ‐ ‐ 29,275.00 Total $6,232,465.22 $546,235.00 $6,773,908.27 $7,080,519.17 $306,610.90 ‐ Robert W. Baird & Co. Traverse City Public Finance Page 11 City of Muskegon Refunding of 1999 Water Revenue and Refunding Bonds Dated: March 29, 2010 Debt Service Comparison Part 2 of 2 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings........................................................................................................................ 353,998.49 Net PV Cashflow Savings @ 3.581%(AIC)....................................................................................................... 353,998.49 Transfers from Prior Issue Debt Service Fund................................................................................................ (96,785.83) Contingency or Rounding Amount................................................................................................................. 4,791.95 Net Present Value Benefit.............................................................................................................................. $262,004.61 Net PV Benefit / $5,130,000 Refunded Principal........................................................................................... 5.107% Net PV Benefit / $5,265,000 Refunding Principal.......................................................................................... 4.976% Refunding Bond Information Refunding Dated Date.................................................................................................................................... 3/29/2010 Refunding Delivery Date................................................................................................................................. 3/29/2010 Robert W. Baird & Co. Traverse City Public Finance Page 12 City of Muskegon 1999 Water Revenue and Refunding Bonds Dated: 3/2/99 Callable: 5/1/09 @ 100 Current Outstanding Debt Service Date Principal Coupon Interest Total P+I 05/01/2010 535,000.00 4.200% 11,235.00 546,235.00 Total $535,000.00 ‐ $11,235.00 $546,235.00 Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation........................................................................................ 3/29/2010 Average Life................................................................................................................................................... 0.089 Years Average Coupon............................................................................................................................................. 4.2000000% Weighted Average Maturity (Par Basis)......................................................................................................... 0.089 Years Refunding Bond Information Refunding Dated Date.................................................................................................................................... 3/29/2010 Refunding Delivery Date................................................................................................................................ 3/29/2010 Robert W. Baird & Co. Traverse City Public Finance Page 13 City of Muskegon, Michigan 1993 Water Supply Revenue Bonds Dated October 1, 1993 Callable May 1, 2001 @ 101; 04 @ 100.5; 06 @ 100 Debt Service To Maturity And To Call Refunded Interest to Date Bonds Call D/S To Call Principal Coupon Interest Refunded D/S 03/29/2010 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 05/01/2010 900,000.00 20,250.00 920,250.00 ‐ ‐ 20,250.00 20,250.00 11/01/2010 ‐ ‐ ‐ ‐ ‐ 20,250.00 20,250.00 05/01/2011 ‐ ‐ ‐ ‐ ‐ 20,250.00 20,250.00 11/01/2011 ‐ ‐ ‐ ‐ ‐ 20,250.00 20,250.00 05/01/2012 ‐ ‐ ‐ 450,000.00 4.500% 20,250.00 470,250.00 11/01/2012 ‐ ‐ ‐ ‐ ‐ 10,125.00 10,125.00 05/01/2013 ‐ ‐ ‐ 450,000.00 4.500% 10,125.00 460,125.00 Total $900,000.00 $20,250.00 $920,250.00 $900,000.00 ‐ $121,500.00 $1,021,500.00 Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation....................................................................................... 3/29/2010 Average Life.................................................................................................................................................. 2.589 Years Average Coupon............................................................................................................................................ 4.5000000% Weighted Average Maturity (Par Basis)........................................................................................................ 2.589 Years Refunding Bond Information Refunding Dated Date................................................................................................................................... 3/29/2010 Refunding Delivery Date............................................................................................................................... 3/29/2010 Robert W. Baird & Co. Traverse City Public Finance Page 14 City of Muskegon Refunding of Outstanding 1993 Water Revenue Bonds Dated: March 29, 2010 Current Refunding Escrow Date Principal Rate Interest +Transfers Receipts Disbursements Cash Balance 03/29/2010 ‐ ‐ ‐ ‐ 0.73 ‐ 0.73 05/01/2010 903,566.00 0.040% 32.67 16,650.60 920,249.27 920,250.00 ‐ Total $903,566.00 ‐ $32.67 $16,650.60 $920,250.00 $920,250.00 ‐ Investment Parameters Investment Model [PV, GIC, or Securities]..................................................................................................... Securities Default investment yield target..................................................................................................................... Unrestricted Cost of Investments Purchased with Fund Transfers..................................................................................... 16,650.00 Cash Deposit.................................................................................................................................................. 0.73 Cost of Investments Purchased with Bond Proceeds..................................................................................... 903,566.00 Total Cost of Investments.............................................................................................................................. $920,216.73 Target Cost of Investments at bond yield...................................................................................................... $901,153.86 Actual positive or (negative) arbitrage.......................................................................................................... (2,412.87) Yield to Receipt.............................................................................................................................................. 0.0406797% Yield for Arbitrage Purposes.......................................................................................................................... 3.0722328% State and Local Government Series (SLGS) rates for..................................................................................... 2/16/2010 Robert W. Baird & Co. Traverse City Public Finance Page 15 City of Muskegon Refunding of Outstanding 1993 Water Revenue Bonds Dated: March 29, 2010 Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 03/29/2010 ‐ ‐ ‐ ‐ ‐ 11/01/2010 ‐ ‐ 9,830.03 9,830.03 ‐ 12/31/2010 ‐ ‐ ‐ ‐ 9,830.03 05/01/2011 15,000.00 1.300% 8,346.25 23,346.25 ‐ 11/01/2011 ‐ ‐ 8,248.75 8,248.75 ‐ 12/31/2011 ‐ ‐ ‐ ‐ 31,595.00 05/01/2012 460,000.00 1.700% 8,248.75 468,248.75 ‐ 11/01/2012 ‐ ‐ 4,338.75 4,338.75 ‐ 12/31/2012 ‐ ‐ ‐ ‐ 472,587.50 05/01/2013 445,000.00 1.950% 4,338.75 449,338.75 ‐ 12/31/2013 ‐ ‐ ‐ ‐ 449,338.75 Total $920,000.00 ‐ $43,351.28 $963,351.28 ‐ Yield Statistics Bond Year Dollars............................................................................................................................................ $2,351.78 Average Life.................................................................................................................................................... 2.556 Years Average Coupon............................................................................................................................................. 1.8433408% Net Interest Cost (NIC).................................................................................................................................... 2.2345343% True Interest Cost (TIC)................................................................................................................................... 2.2473987% Bond Yield for Arbitrage Purposes.................................................................................................................. 3.0722328% All Inclusive Cost (AIC).................................................................................................................................... 2.6902857% IRS Form 8038 Net Interest Cost............................................................................................................................................. 1.8433408% Weighted Average Maturity........................................................................................................................... 2.556 Years Robert W. Baird & Co. Traverse City Public Finance Page 16 City of Muskegon Refunding of Outstanding 1993 Water Revenue Bonds Dated: March 29, 2010 Debt Service Comparison Date Total P+I Net New D/S Old Net D/S Savings Fiscal Total 03/29/2010 ‐ 2,695.58 (16,650.00) (19,345.58) ‐ 05/01/2010 ‐ ‐ 20,250.00 20,250.00 ‐ 11/01/2010 9,830.03 9,830.03 20,250.00 10,419.97 ‐ 12/31/2010 ‐ ‐ ‐ ‐ 11,324.39 05/01/2011 23,346.25 23,346.25 20,250.00 (3,096.25) ‐ 11/01/2011 8,248.75 8,248.75 20,250.00 12,001.25 ‐ 12/31/2011 ‐ ‐ ‐ ‐ 8,905.00 05/01/2012 468,248.75 468,248.75 470,250.00 2,001.25 ‐ 11/01/2012 4,338.75 4,338.75 10,125.00 5,786.25 ‐ 12/31/2012 ‐ ‐ ‐ ‐ 7,787.50 05/01/2013 449,338.75 449,338.75 460,125.00 10,786.25 ‐ 12/31/2013 ‐ ‐ ‐ ‐ 10,786.25 Total $963,351.28 $966,046.86 $1,004,850.00 $38,803.14 ‐ PV Analysis Summary (Net to Net) Gross PV Debt Service Savings......................................................................................................................... 56,177.82 Net PV Cashflow Savings @ 2.690%(AIC)........................................................................................................ 56,177.82 Transfers from Prior Issue Debt Service Fund.................................................................................................. (16,650.00) Contingency or Rounding Amount................................................................................................................... (2,695.58) Net Present Value Benefit................................................................................................................................ $36,832.24 Net PV Benefit / $900,000 Refunded Principal.............................................................................................. 4.092% Net PV Benefit / $920,000 Refunding Principal............................................................................................. 4.004% Refunding Bond Information Refunding Dated Date...................................................................................................................................... 3/29/2010 Refunding Delivery Date................................................................................................................................... 3/29/2010 Robert W. Baird & Co. Traverse City Public Finance Page 17 AGENDA ITEM NO. ______________ CITY COMMISSION MEETING _____________________ TO: Honorable Mayor and City Commissioners FROM: Bryon L. Mazade, City Manager DATE: February 24, 2010 RE: Summer Celebration Payment Deferral SUMMARY OF REQUEST: To consider a request from Summer Celebration for an extension and payment plan for 2009 city services. FINANCIAL IMPACT: $66,299.93 due for 2009. BUDGET ACTION REQUIRED: The lack of payment negatively impacted the 2009 budget. STAFF RECOMMENDATION: None. COMMITTEE RECOMMENDATION: None. pb\AGENDA\AGENDA-SUMMER CELEB PAYMENT DEFERRAL 022410
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