View the PDF version Google Docs PDF Viewer
CITY OF MUSKEGON
CITY COMMISSION MEETING
MARCH 27, 2007
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
a CALL TO ORDER:
a PRAYER:
a PLEDGE OF ALLEGIANCE:
a ROLL CALL:
a HONORS AND AWARDS:
a INTRODUCTIONS/PRESENTATION:
a CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. Adoption of Muskegon County Hazard Mitigation Plan Resolution.
PUBLIC SAFETY
C. Road Salt Procurement Authorization. PUBLIC WORKS
D. Beverage Vending Contract for Parks/Maring Facilities. PUBLIC WORKS
E. Consideration of Bids for Larch Avenue, Hudson to Barclay Watermain
Replacement (W-691). ENGINEERING
F. Consideration of Bids for Hudson Street, Wilson to Laketon Watermain
Replacement (W-692). ENGINEERING
G. Consideration of Bids for Alley Between Torrent Street and Mann Street
South of Lakeshore Drive Sanitary Sewer Replacement (8-621),
ENGINEERING
a PUBLIC HEARINGS:
A. Amendments to Brownfield Plan - Hotrod Harley. PLANNING &
ECONOMIC DEVELOPMENT
B. Michigan Natural Resources Trust Fund Grant Application for Smith-
Ryerson Park. PLANNING & ECONOMIC DEVELOPMENT/LEISURE
SERVICES
a COMMUNICATIONS:
a CITY MANAGER'S REPORT:
Q UNFINISHED BUSINESS:
a NEW BUSINESS:
A. Transfer Retiree Healthcare Assets to Municipal Employees Retirement
System. FINANCE
B. Army Corps of Engineers Supplemental Agreement - Pier Safety, CITY
MANAGER
C. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish the Following: PUBLIC SAFETY
1211 Third Street (Area 10)
536 Oak - Garage (Area 11)
ANY OTHER BUSINESS:
Oo
PUBLIC PARTICIPATION:
CG
VVVVVVVV
Reminder: Individuals who would like to address the City Commission shail 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 fo address the Commission.
{Speaker representing a group may be allowed 10 minutes if previously regisiered with City Clerk.)
Q 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 27, 2007
To: Honorable Mayor and City Commissioners
From: Ann Marie Becker, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes for the March 12"
Commission Worksession, and the March 13" Regular Commission
Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
MARCH 27, 2007
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 27,
2007.
Mayor Warmington opened the meeting with a prayer from Vice Mayor
Stephen Gawron after which the Commission and public recited the Pledge of
Allegiance fo the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioner Chris Carter, Kevin Davis, Clara Shepherd, Lawrence Spataro, and
Sue Wierengo, City Manager Bryon Mazade, City Attorney John Schrier, and City
Clerk Ann Marie Becker.
INTRODUCTIONS/PRESENTATION: Sister City representative Rob Schweifler
introduced Deniz Tolga who is from our Sister City Kepez-Turkey. Deniz said
goodbye and thanked the City for their hospitality during his stay.
Commissioner Clara Shepherd presented a resolution to Frances Day thanking
her for her efforts in helping a citizen in need.
2007-27 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the March 12!" Commission
Worksession, and the March 13' Regular Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Adoption of Muskegon County Hazard Mitigation Plan Resolution.
PUBLIC SAFETY
SUMMARY OF REQUEST: The Director of Public Safety is asking ihe Commission to
consider the adoption of the Muskegon County Hazard Mifigation Plan
Resolution. The Hazard Mitigation Plan is part of the overall response plan for
Muskegon County. The adoption of this resolution will ensure the continued
availability of federal funding including the Pre-Disaster Mitigation Program,
Hazard Mitigation Program and Fire Management Assistance Grants.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of this request.
C. Road Salt Procurement Authorization, PUBLIC WORKS
SUMMARY OF REQUEST: Authorize road salf procurement for the 2007/2008
winter season through the State of Michigan Extended Purchasing Program.
FINANCIAL IMPACT: Per ton price yet to be determined; average winter usage
of 4,622 tons at the 2006/2007 extended price of $32.99/ton totals $152,479.
BUDGET ACTION REQUIRED: None; expense budgeted for through public works.
STAFF RECOMMENDATION: Approve request.
D. Beverage Vending Contract for Parks/Marina Facilities, PUBLIC WORKS
SUMMARY OF REQUEST: To enter into a three-year contractual agreement with
Dr. Pepper/Seven Up fo provide vending service throughout City Parks and
Marina Facilities.
FINANCIAL IMPACT: Contract revenue is unknown at this time. Approximately
$12,000 in revenue was received from previous vendor (Pepsi) during the 2004-
2006 contracts.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATON: Approve request.
COMMITTEE RECOMMENDATION: The Leisure Services Board had approved the
request to enter into contractual agreement with Dr. Pepper/Seven Up at their
March 19 meeting.
E. Consideration of Bids for Larch Avenue, Hudson to Barclay Watermain
Replacement (W-691). ENGINEERING
SUMMARY OF REQUEST: Award the contract for the watermain replacement in
Larch Avenue from Hudson to Barclay to Felco Contractors, Inc. of Muskegon,
MI, since they were the lowest responsible bidder with a bid price of $128,867.80.
FINANCIAL IMPACT: The construction cost of $128,867.80.
BUDGET ACTION REQUIRED: None.
STAFE RECOMMENDATION: Award the contract to Felco Contractors, Inc.
F. Consideration of Bids for Hudson Street, Wilson to Laketon Watermain
Replacement (W-692). ENGINEERING
SUMMARY OF REQUEST: Award the contract for the watermain replacement in
Hudson Street from Wilson to Laketon fo Van's Contracting, Inc. of Coopersville,
MI, since they were the lowest responsible bidder with a bid price of $235,393.02.
FINANCIAL IMPACT: The construction cost of $235,393.02.
BUDGET ACTION REQUIRED: None.
STAFE RECOMMENDATION: Award the contract to Van's Contracting, Inc.
G. Consideration of Bids for Alley Between Torrent Street and Mann Street
South of Lakeshore Drive Sanitary Sewer Replacement (8-621).
ENGINEERING
SUMMARY OF REQUEST: Award the contract for the sanitary sewer replacement
in the alley between Torrent Street and Mann Street south of Lakeshore fo Feico
Contractors, Inc. of Muskegon, MI, since they were the lowest responsible bidder
with a bid price of $70,951.
FINANCIAL IMPACT: The construction cost of $70,951.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to Felco Contractors, Inc.
Motion by Vice Mayor Gawron, second by Commissioner Carter to approve fhe
Consent Agenda as read.
ROLL VOTE: Ayes: Warmington, Wierengo, Carter, Davis, Gawron, Shepherd,
and Spataro
Nays: None
MOTION PASSES
2007-28 PUBLIC HEARINGS:
A. Amendments to Brownfield Plan ~— Hotrod Harley. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of property owned by Muskegon Downtown
Believers LLC in the Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in approving the
Brownfield Plan amendments, although the redevelopment of the property into
a commercial project will add to the tax base of the City of Muskegon.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the
pubic hearing for March 27, 2007, at their February 27, 2007, meeting. Since that
lime, a notice of the public hearing has been sent to taxing jurisdictions, and it
has been published twice in the Muskegon Chronicle. In addition, the
Brownfield Redevelopment Authority approved the Plan amendment on
February 23, 2007, and further recommends that the Muskegon City Commission
approve the Plan amendment.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to close the
Public Heating and adopt the resolution approving the amendments to the
Brownfield Plan.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
and Gawron
Nays: None
MOTION PASSES
B. Michigan Natural Resources Trust Fund Grant Application for Smith-
Ryerson Park. PLANNING & ECONOMIC DEVELOPMENT/LEISURE
SERVICES
SUMMARY OF REQUEST: To hold a public hearing for public input for the
Michigan Natural Resources Trust Fund Grant Application regarding the first
phase of proposed upgrades to Smith-Ryerson Park. The application has been
made available for viewing prior fo the public hearing at fhe City Clerk's Office
and on the City's website. The application is fo build an ADA compliant
restroom with concession stand, an irrigation system through out fhe park, a
large picnic shelter with two grills and thirly-two twelve foot picnic tables,
reconstruction of the basketball courts with concrete, new poles, backboards,
tims, and timed lighting system, a pedestrian trail along the creek, the
rehabilitation of the existing restroom building to be for storage only, and a set of
aluminum bleachers.
FINANCIAL IMPACT: There is no impact for the 2007 budget year. If the
application is approved, then this would need fo be budgeted for the 2008
budget year.
BUDGET ACTION REQUIRED: The total estimated cost for the upgrades is
$577,829. The City is required to have a 25% match of those costs (excluding
cents} which would be $144,458. Therefore, this would need to be budgeted in
2008.
STAFF RECOMMENDATION: To hold the public hearing, approve submittal of the
grant application, the 25% match, and to have the Mayor and Clerk sign the
resolution,
Public comments were heard from Leland Davis, 1148 Terrace Manor, stating
that this is a good cause.
Motion by Commissioner Carter, second by Commissioner Davis to close the
Public Hearing and approve the submittal of the grant application.
ROLL VOTE: Ayes: Davis, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Carter
Nays: None
MOTION PASSES
2007-29 NEW BUSINESS:
A. Transfer Retiree Healthcare Assets to Municipal Employees Retirement
System. FINANCE
SUMMARY OF REQUEST: The City has now completed the transfer of all pension
assets (formerly administered through the City’s pension boards) to MERS
(Municipal Employees Retirement System of Michigan}. As you know, the City
also has set aside funds (approximately $13.5 million) for retiree healthcare
benefits. Historically these funds have been “piggybacked” onto the pension
assets for investment purposes. Staff is recommending that the City's retiree
healthcare assets also be transferred to MERS.
FINANCIAL IMPACT: The total MERS asset base is $6 billion which means they are
able to diversify and achieve economies of scale in investments to a far greater
extent than we can by ourselves. We expect that our participation in this
program will improve investment returns and grow the accumulated assets so
that we are better positioned to pay future retiree healthcare costs without
severe disruption to the operating budget.
BUDGET ACTION REQUIRED: No current year budget impact. The expecied
higher returns achievable through MERS will reduce the impact on future
budgets and help the City achieve full funding of these long-term liabilities.
STAFF RECOMMENDATION: Approval of the RETIREE HEALTH FUNDING VEHICLE
UNIFORM RESOLUTION and authorization for staff fo transfer the City's
accumulated retiree healthcare funds to MERS.
COMMITTEE RECOMMENDATION: At its last official meeting, the City's pension
boards voted to recommend to the City Commission the transfer of retiree
healthcare assets fo MERS.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the resolution and the transfer of the City’s accumulated retiree healthcare funds
to MERS.
ROLL VOTE: Ayes: Wierengo, Carter, Davis, Gawron, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
B. Army Corps of Engineers Supplemental Agreement - Pier Safety. CITY
MANAGER
SUMMARY OF REQUEST: To approve Supplemental Agreement No. 1 to ine Army
Corps of Engineers Lease No. DACW35-1-71-3004. This supplemental agreement
will incorporate the South Breakwater of the Muskegon Harbor into the lease to
allow the placement of pier safety devices.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Supplemental Agreement.
Motion by Commissioner Carter, second by Vice Mayor Gawron to approve the
Supplemental Agreemeni.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Carter, Davis, Gawron, and
Shepherd
Nays: None
MOTION PASSES
C. Concurrence with the Housing Board of Appeals Notice and Order fo
Demolish the Following: PUBLIC SAFETY
1211 Third Street (Area 10)
536 Oak - Garage (Area 11)
ftem C has been removed per request of staff.
PUBLIC PARTICIPATION: Various comments were heard from the public.
ADJOURNMENT: The City Commission Meeting adjourned at 6:10 p.m.
Respecifully submitted,
r
4 \
Ann Marie Becker, MMC
City Clerk
CITY COMMISSION MEETING
March 27, 2007
TO: Honorable Mayor and City Commissioners
FROM: Anthony L. Kleibecker
Director of Public Safety
DATE: March 19, 2007
SUBJECT: Adoption of Muskegon County Hazard Mitigation Plan Resolution
SUMMARY OF REQUEST:
The Director of Public Safety is asking the Commission to consider the adoption of the
Muskegon County Hazard Mitigation Plan Resolution. The Hazard Mitigation Plan is
part of the overall response plan for Muskegon County. The adoption of this resolution
will ensure the continued availability of federal funding including the Pre-Disaster
Mitigation Program, Hazard Mitigation Program and Fire Management Assistance
Grants.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATIONS:
Approval of this request.
Hazard Mitigation Plan Adoption Resolution
Resolution No. 2007-27(b)
Whereas Muskegon County, Michiaced gan has experienced repetitive disast ers that have damaged commercial,
residential and public properties, displonally,citiz bridges dividing the
ens and businesses, closed streets andsafety
community both physically and emoti and presented general public health and concerns; and
Whereas the community has prepared a Hazardtechn Mitigation Plan that outlines the community's options to
reduce overall damage and impact from natural and ological hazards; and
Whereas the Hazard Mitig ation Plan has beenedrevie wed by community residents, busin: ess owners, and
ies, and has been revis to reflect their concems;
federal, state and local agenc
Now, therefore, be it resolved that:
of Muskegon.
1. The Hazard Mitigation Plan is hereby adopted as an official plan of the City
2. The Muskegon County Local Emer gency Planning Commission (LEPC)valis hereby established as a
permanent community advis ory bodywhose members are subject to the appro of the Michigan State Police.
a
be as designated in the Hazard Mitigation Plan.
The group's duties shall
tor, or designee, is charged with the
y Services Director, Assistant Direcfundi
3, The Muskegon County EmergencPlan’ s recommendations within the ng limitations as provided by
supervising the implementation of the or other sources.
City Commission
Director, or designee, shall give priority
y Services Director, AssistantMitig
4, The Muskegon County Emergencreco
attention to the following action itemsmmended by the Hazard ation Plan:
a, (Recommendation , page )
b. (Recommendation » page )
CG, (Recommendation _ , page )
d. (Recommendation , page )
e. (Recommendation , page ).
Services Director shall
5. The Muskegon CounoftytheEmerplangencandy shall erly, The LEPC shall
convene the LEPC quartegon
monitor implementation submit a written progress report to Musk County in
accordance with the following format:
Ateview of the original plan.
occurred during the previous calendar year.
A review of any disasters or emergencies that was
re
ous year.
A review of the actions taken, including what accomplished during the previ
ean
A discussion of any implementation problems.
action items. Such recommendations shall be
Recommendations for new projects or revistyedBoar
subject to approval by the Muskegon Coun d of Commissioners.
Passed this 27%2 day of March, 2007.
CERTIFICATION
2007-27(b)
held on March 27,
This resolution was adopted at a regular meeting of the City Commission,Meetin
2007. The meeting was properly held and noticed pursuant to the Open gs Act of the
State of Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
Ann Marie Becker, MMC
City Clerk
Affirmative Action
(231)724-6793
FAX (231)722-1214
MUSKEGON
Assessor
(231)724-6708
FAX (231)726-5181
Cemetery
(23 19724-6783
FAX (231)726-5617
West Michigan’s Shoreline City
City Manager
www,shorelinecity.com
(231)724-6724
FAX (231)722-1214
Civil Service
(23 1)724-6716
FAX (231)724-4405
Clerk
(231)724-6705
FAX (231)724-4178
April 10, 2007
Comm. & Neigh.
Services
(231)724-6717
FAX (231)726-2501
Engineering Mr. Roy Wheeler, Asst. Director
(231)724-6707
FAX (231)727-6904 Emergency Services Department
c/o 131 E. Apple Avenue
Finance
(231)724-6713 Building H, Room 208
FAX (231)724-6768
Muskegon, MI 49442
Fire Department
(231)724-6792
FAX (231)724-6985 Dear Mr. Wheeler:
Income Tax
(23 1)724-6770 Enclosed is the Muskegon County Hazard Mitigation Plan Resolution which was
FAX (231)724-6768
adopted by the City Commission at their March 27, 2007, meeting.
Info. Technology
(23 1)724-4126
FAX (231)722-4301 Thank you,
Inspection Services
(231)724-6715
FAX (231)728-4371
Leisure Services Linda Potter
(231)724-6704
FAX (231)724-1196
Deputy Clerk
Mayor’s Office
(231)724-6701 enc.
FAX (231)722-1214
Planning/Zoning
(231)724-6702
FAX (231)724-6790
Police Department
(231)724-6750
FAX (231)722-5140
Public Works
(231)724-4100
FAX (231)722-4188
Treasurer
(231)724-6720
FAX (231)724-6768
Water Billing
(231)724-6718
FAX (231)724-6768
Water Filtration
(231)724-4106
FAX (231)755-5290 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
http://www.shorelinecity.com
AGENDA ITEM NO.
CITY COMMISSION MEETING
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: March 16, 2007
SUBJECT: — Road Salt Procurement Authorization
SUMMARY OF REQUEST:
Authorize road salt procurement for the 2007/2008 winter season through the State of Michigan
Extended Purchasing Program.
FINANCIAL IMPACT:
Per ton price yet to be determined; average winter usage of 4,622 tons at the 2006/2007 extended
price of 32.99/ton totals $152,479.
BUDGET ACTION REQUIRED:
None; expense budgeted for through public works.
STAFF RECOMMENDATION:
Approve request.
COMMITTEE RECOMMENDATION:
AGENDA ITEM NO.
CITY COMMISSION MEETING
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: March 21, 2007
SUBJECT: Beverage Vending Contract for Parks/Marina Facilities
SUMMARY OF REQUEST:
To enter into 3-year contractual agreement with Dr. Pepper/Seven Up to provide vending service
throughout City Parks and Marina Facilities.
FINANCIAL IMPACT:
Contract revenue is unknown at this time. Approximately $12,000 in revenue was received from
previous vendor (Pepsi) during the 2004-6 contracts.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approve request.
COMMITTEE RECOMMENDATION:
The Leisure Services Board has previously approved the request to enter into contractual
agreement with Dr. Pepper/Seven Up at their March 19th meeting.
LEISURE SERVICES BOARD MEETING DATE - MARCH 5, 2007
To: Leisure Services Board and Parks/Marina Staff
Date: 2/19/07
From: DPW
RE: Beverage Vending Contract for Parks/Marina Facilities
On Tuesday, February 13, 2007, three proposals were received for the request to supply
beverage vending at various outdoor Parks and Marina facilities. Proposals were received
from:
Company Address Commission on Sales
Coca Cola 1208 Butterworth, Grand Rapids, MI 25%
Pepsi 4900 Paul Court, Norton Shores, MI 40%
Dr. Pepper/Seven Up 900 Brooks Avenue, Holland, MI 45%
(All percentages above are based on 20 oz product size and $1.25 vend price, minus any
applicable deposits). Other sale percentages could be higher or lower based upon product,
size, and vending price.
Additionally, Coca Cola did not offer an incentive, however Pepsi did offer 25 cases of free
product (cans) per season and Dr. Pepper/Seven Up offered 50 free cases (cans) every year
of the contract agreement.
All three proposals received are requesting a 3-year exclusive beverage vending agreement.
However, staff only requested proposais for the summer of 2007 and beyond.
Staff is recommending that we award an exclusive 3-year contract to Dr. Pepper/Seven Up.
Date: March 27, 2007
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Consideration of Bids
Larch Ave., Hudson St. to Barclay St. Watermain Replacement
(W-691)
SUMMARY OF REQUEST:
Award the contract for the watermain replacement in Larch Ave. from Hudson St. to
Barclay St. to Felco Contractors, Inc. of Muskegon, MI since they were the lowest
responsible bidder with a bid price of $128,867.80.
FINANCIAL IMPACT:
The construction cost of $128,867.80
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Award the contract to Felco Contractors, Inc.
COMMITTEE RECOMMENDATION:
AVLSHTBEUNRDCO.,Y
0TBA3/«UI1LD7O,N
x ye s3.0 | SzE.0 35.0 ]5- 3729.0 874 50 FONE MENIG OL
SENT2GI7R
i
Date: March 27, 2007
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Consideration of Bids
Hudson St., Wilson Ave. to Laketon Ave. Watermain Replacement
(W-692)
SUMMARY OF REQUEST:
Award the contract for the watermain replacement in Hudson St., from Wilson Ave. to
Laketon Ave. to Van's Contracting, Inc. of Coopersville, MI since they were the lowest
responsible bidder with a bid price of $235,393.02.
FINANCIAL IMPACT:
The construction cost of $235,393.02
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Award the contract to Van’s Contracting, Inc.
COMMITTEE RECOMMENDATION:
|—HLMSOws“e"‘3DoTynvAaiuI9NB8YtzdCmr'Ech0gta|sF—=“OSwo[7nP"BEW_DdvUciTGrReu8g]kymY~+LI1jlN;HV5zhA()3«$M'0C”?fbZ‘69/@—ap|teS“_T[ocOsnrvug8wGm]"iy¢IF5=lNEDAhHdzU}L§jR2:3CKéY¥$f~WVkB60;J”9|‘t/ea)S]wM[s“o—vu_ipcnrGbTymO!L8-F5INADE"dH ~J¢'féR$XW’©|CUql1YVatB=)/eSZ¥P”KTOs“[cihovrwpGuznx—_]Mm?yEw_‘FOWBnesEoaiTrR=
6SA]ELVTWXO Hove|[raswouS]evds[atroGlieysc|otreSs]an’odb=|[tsy_eorfi wTGYsyoOE[8CU5Wise
NN“"OLZH3SMTAGYVI'l SLIWVAEOUd,
TSWESHvNiToOenSs ESraoTes
r‘wiBoneas HSRENT SGIVHNeOLW
Date: March 27, 2007
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Consideration of Bids
Alley Between Torrent St. and Mann St. South of Lakeshore Dr.
Sanitary Sewer Replacement (S-621)
SUMMARY OF REQUEST:
Award the contract for the sanitary sewer replacement in the alley between Torrent St. and
Mann St. south of Lakeshore Dr. to Felco Contractors, Inc. of Muskegon, MI since they
were the lowest responsible bidder with a bid price of $70,951.00.
FINANCIAL IMPACT:
The construction cost of $70,951.00
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Award the contract to Felco Contractors, Inc.
COMMITTEE RECOMMENDATION:
2_“H0$Y3M.[791R-¥4|'IS‘LOGaBbNtvyUheZzoVrDAWTi6Xp?E 6~sSo$§Hf[“e)/8LrcjaviON'}nbDw]GdU|tzuy
9aN0O/L8iV2IA6E
LO|TNZU3yAaeI2tS
[WLOLENs oreorzs
Commission Meeting Date: March 27, 2007
Date: March 19, 2007
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department ce
RE: Public Hearing for Amendments to Brownfield
Plan- Hotrod Harley
SUMMARY OF REQUEST: To hold a public hearing and approve the attached
resolution approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of property owned by Muskegon Downtown
Believers LLC in the Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in approving the Brownfield
Plan amendments, although the redevelopment of the property into a commercial
project will add to the tax base of the City of Muskegon.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the attached
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for March 27, 2007, at their February 27, 2007 meeting. Since that time, a
notice of the public hearing has been sent to taxing jurisdictions, and it has been
published twice In the Muskegon Chronicle. In addition, the Brownfield
Redevelopment Authority approved the Plan amendment on February 23, 2007 and
further recommends that the Muskegon City Commission approve the Plan
amendment.
2007-28(a)
RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT
HOTROD HARLEY
City of Muskegon
County of Muskegon, Michigan
Minutes of a Regular Meeting of the City Commission of the City of Muskegon,
County of Muskegon, Michigan (the "City"), held in the City Commission Chambers,
on the 2722 day of _ March , 2007, at 5:30 o'clock p.m., prevailing Eastern
Time.
PRESENT: Members
Carter, Davis, Gawron, Shepherd, Spataro, Warmington,
and Wierengo
ABSENT: Members
None
The following preamble and resolution were offered by Member
Spataro and supported by Member __Gawron
WHEREAS, in accordance with the provisions of Act 381, Public Acts of
Michigan, 1996, as amended ("Act 381"), the City of Muskegon Brownfield
Redevelopment Authority (the “Authority") has prepared and approved a Brownfield
Plan Amendment to add Hotrod Harley; and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to
the City Commission requesting its approval of the Brownfield Plan Amendment;
and
WHEREAS, the City Commission has provided notice and a reasonable
ss
opportunity to the taxing jurisdictions levying taxes subject to capture to expre
their views and recommendations regarding the Brownfield Plan Amendment, as
required by Act 381; and
WHEREAS, not less than 20 days has passed since the City Commission
provided notice of the proposed Brownfield Plan to the taxing units; and
WHEREAS, a notice of the Public Hearing on the proposed Brownfield Plan
Amendment was published twice in the Muskegon Chronicle, the first of which was
not less than 20 days before the scheduled Public Hearing; and
WHEREAS, the City Commission held a public hearing on the proposed
Brownfield Plan on March 27, 2007.
NOW, THEREFORE, BE IT RESOLVED, THAT:
1. Definitions. Where used in this Resolution the terms set forth below
shall have the following meaning unless the context clearly requires otherwise:
“Eligible Property" means the property designated in the Brownfield Plan as
the Eligible Property, as described in Act 381.
“Brownfield Plan" means the Brownfield Plan prepared by the Authority, as
transmitted to the City Clerk by the Authority for approval, copies of which
Brownfield Plan are on file in the office of the City Clerk.
"Taxing Jurisdiction" shall mean each unit of government levying an ad
valorem property tax on the Eligible Property.
2. Public Purpose. The City Commission hereby determines that the
Brownfield Plan Amendment constitutes a public purpose.
3. Best Interest of the Public. The City Commission hereby determines
that it is in the best interests of the public to promote the revitalization of eligible
properties in the City to proceed with the Brownfield Pian Amendment.
4. Review Considerations. As required by Act 381, the City Commission has,
in reviewing the Brownfield Plan Amendment, taken into consideration
whether the Brownfield Plan Amendment meets the requirements set forth in
Section 13 of Act 381.
Approval and Adoption of Brownfield Plan Amendment. The Brownfield
Plan Amendment as submitted by the Authority is hereby approved and
adopted. A copy of the Brownfield Plan and all amendments thereto shall be
maintained on file in the City Cierk’s office.
No Capture of Tax Increment Revenues by Authority. The Authority shall
not capture Tax Increment Revenues on the Eligible Property, as described
in the Brownfield Plan Amendment.
Disclaimer. By adoption of this resolution and approval of the Brownfield
,
Plan Amendment, the City assumes no obligation or liability to the owner
developer or lessor of the Eligible Property for any loss or damage that may
result to such persons from the adoption of this resolution and Brownfield
Plan Amendment. The City makes no guarantees or representations as to
the determinations of the appropriate state officials regarding the ability of
the owner, developer or lessor to qualify for a single business tax credit
pursuant to Act 228, Public Acts of Michigan, 1975, as amended, or as to
the ability of the Authority to capture tax increment revenues from the State
and local school district taxes for the Brownfield Plan.
8. Repealer. All resolutions and parts of resolutions insofar as they conflict
with the provisions of this resolution be and the same hereby are rescinded.
AYES: Members
Shepherd, Spataro, Warmington, Wierengo, Carter, Davis,
and Gawron
NAYS:
Members. None
RESOLUTION DECLARED ADOPTED.
QAnyneMavrise rBeckoern, e
City
t
Cl er
ek
ae
| hereby certify that the foregoing is a true and complete copy of a resolution
adopted by the City Commission of the City of Muskegon, County of Muskegon,
State of Michigan, at a regular meeting held on March 27, 2007, 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, as amended, and that the minutes of said meeting were kept and
will be or have been made available as required by said Act.
Ann Marie Becker, City Clerk
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT
AUTHORITY
BROWNFIELD PLAN AMENDMENT
“Hot Rod Harley”
Original Plan Approved by the Board of the City of Muskegon Brownfield Redevelopment
Authority on February 23, 1998, with amendments approved 8/10/98; 6/13/00, 4/15/03;
7/7103; 4/20/04; 6/21/04;9/8/04; and 9/5/06.
Original Plan Approved by the City Commission of the City of Muskegon on
April 14, 1998, with amendments approved 8/11/98; 7/11/00; 5/27/03; 8/12/03, 5/25/04;
7/13/04; 7/27/04; 10/12/04, and 10/24/06.
City of Muskegon Brownfield Plan Amendment
February 2007
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
INDEX
INTRODUCTION
GENERAL PROVISIONS
Costs of the Brownfield Plan
DORLY
Maximum Amount of Indebtedness
Duration of the Brownfield Plan
Displacement/Relocation of Individuals on
Eligible Properties
E. Local Site Remediation Revolving Fund
Ul. SITE SPECIFIC PROVISIONS
Kirksey/Anaconda Property (Approved 4/14/98)
7 TOMMIGOG>y
ZErAS
Dilesco Corporation Property (Approved 8/11/98)
Beacon Recycling (Approved 7/11/00)
Verplank Dock Company (Approved 5/27/03)
Gillespie Development Property (Approved 8/12/03))
Loft Properties, LLC Property (Approved 8/12/03)
Parmenter O'Toole Property (Approved 8/12/03)
“The WaterMark” Project (Approved 5/25/04)
Northern Machine Tool (Approved July 13, 2004)
Terrace Lots Office Building (Approved July 13, 2004)
Art Works Apartments (Approved July 27, 2004)
Former Muskegon Mall (Approved October 12, 2004)
Vida Nova at Edison Landing (Approved 10/10/06)
Western Ave. Properties LLC and Port City Development Services, LLC
(Approved 10/10/06)
Viridian Place at Edison Landing (Approved 10/24/06)
BO
Hot Rod Harley (Approved _3/27/07 )
City of Muskegon Brownfield Plan Amendment
February 2007
|. INTRODUCTION
In order to promote the revitalization of commercial, industrial, and residential properties
within the boundaries of the City of Muskegon (the “City”), the City established the City
of Muskegon Brownfield Redevelopment Authority (the “Authority”) pursuant to Act 381
of 1996, Public Acts of Michigan, as amended (“Act 381”), and a resolution adopted by
the Muskegon City Commission on February 10, 1998.
The major purpose of this Brownfield Plan (“Plan”) is to promote the redevelopment of
eligible properties within the City that are impacted by the presence of hazardous
substances in concentrations that exceed Michigan’s Part 201 Generic Cleanup Criteria
(‘facilities’) or that have been determined to be Functionally Obsolete or Blighted.
inclusion of property within this Plan can facilitate financing of environmental response
activities, infrastructure improvements, demolition, lead or asbestos abatement, and site
preparation activities at eligible properties; and may also provide tax incentives to
eligible taxpayers willing to invest in revitalization of eligible properties. By facilitating
redevelopment of underutilized eligible properties, the Plan is intended to promote
economic growth fro the benefit of the residents of the City and all taxing units located
within and benefited by the Authority.
This plan is intended to be a living document, which can be amended as necessary to
achieve the purposes of Act 381. It is specifically anticipated that properties will be
continually added to the Plan as new projects are identified. The Plan contains general
provisions applicable to each site included in the Plan, as well as property-specific
information for each project. The applicable Sections of Act 381 are noted throughout
the Plan for reference purposes.
This Brownfield Plan contains the information required by Section 13(1) of Act 381, as
amended. Additional information is available from the City Manager.
City of Muskegon Brownfield Plan Amendment
February 2007
H. GENERAL PROVISIONS
A. Costs of the Brownfield Plan (Section 13(1)(a))
Any site-specific costs of implementing this Plan are described in the site-specific
section of the Plan. Site-specific sources of funding may include tax increment financing
revenue generated from new development on eligible brownfield properties, state and
federal grant or loan funds, and/or private parties. Where private parties finance the
costs of eligible activities under the Plan, tax increment revenues may be used to
reimburse the private parties. The initial costs related to preparation of the Brownfield
Plan were funded by the City’s general fund. Subsequent amendments to the Plan are
funded by the person requesting inclusion of a project in the Plan.
The Authority intends to pay for administrative costs and all of the things necessary or
convenient to achieve the objectives and purposes of the Authority with any eligible tax
increment revenues collected pursuant to the Plan, including, but not limited to:
i) the cost of financial tracking and auditing the funds of the Authority,
ii) costs for amending and/or updating this Plan, including legal fees, and
iti) costs for Plan implementation
These eligible tax increment revenues are identified in the site-specific sections of this
Plan. As noted above, most costs related to the preparation of Plan amendments are
borne by the person requesting inclusion of a project within the Plan.
B. Method for Financing Costs of Plan (Section 13(1)(d) and (e)))
The Authority does not intend at this time to incur debt, such as through the issuance of
bonds or other financing mechanisms. In the future, the City or Brownfield Authority may
incur some debt on a site-specific basis. Please refer to the site-specific section of this
Plan for details on any debt to be incurred by the City or Authority. When a property
proposed for inclusion in the Plan is in an area where tax increment financing is a viable
option, the Authority intends to enter into Development Agreements with the property
owners/developers of properties included in the Plan to reimburse them for the costs of
eligible activities undertaken pursuant to this Plan. Financing arrangements will be
specified in the Development Agreement, and also identified in the Site Specific section
of the Plan.
City of Muskegon Brownfield Plan Amendment
February 2007
C._ Duration of the Brownfield Plan (Section 13(1)())
The Plan, as it applies to a specific eligible property, shall be effective up to five (5)
years after the year in which the total amount of any tax increment revenue captured is
equal to the total costs of eligible activities attributable to the specific eligible property, or
thirty (30) years from the date of approval of the Plan as it relates to an individual site,
whichever is less. The total costs of eligible activities include the cost of principal and
interest on any note or obligation issued by the Authority to pay for the costs of eligible
activities, the reasonable costs of a work plan or remedial action plan, the actual costs of
the Michigan Department of Environmental Quality’s or Michigan Economic Growth
Authority's review of the work plan or remedial action plan, and implementation of the
eligible activities.
D. Displacement/Relocation of Individuals on Eligible Properties
(Section 13(1)i,
£K,D)
At this time, eligible properties identified in this Plan do not contain residences, nor are
there any current plans or intentions by the City for identifying eligible properties that will
require the relocation of residences. Therefore the provisions of Section 13(1)(H) are
not applicable at this time.
E. Local Site Remediation Revolving Fund (Section 8; Section 13(1)(m))
At the time this Plan includes a property for which taxes will be captured through the
increment financing authority provided by Act 381, it is the Authority's intent to establish
a Local Site Remediation Revolving Fund ("Fund"). The Fund will consist of tax
increment revenues that exceed the costs of eligible activities incurred on an eligible
property, as specified in Section 13(5) of Act 387. Section 13(5) authorizes the capture
of tax increment revenue from an eligible property for up to 5 years after the time that
capture is required for the purposes of paying the costs of eligible activities identified in
the Plan. It is the intention of the Authority to continue to capture tax increment
revenues for 5 years after eligible activities are funded from those properties identified
for tax capture in the Plan. The amount of school operating taxes captured for the
Revolving Fund will be limited to the amount of school operating taxes captured for
eligible activities under this Plan. It may also include funds appropriated or otherwise
made available from public or private sources.
The Revolving Fund may be used to reimburse the Authority, the City, and private
parties for the costs of eligible activities at eligible properties and other costs as
permitted by Act 381. It may also be used for eligible activities on eligible properties for
which there is no ability to capture tax increment revenues. The establishment of this
Revolving Fund will provide additional flexibility to the Authority in facilitating
redevelopment of brownfield properties by providing another source of financing for
necessary eligible activities.
City of Muskegon Brownfield Plan Amendment
February 2007
HH. SITE SPECIFIC PROVISIONS
P. HOT ROD HARLEY DAVIDSON
Eligibility and Project Summary (Sec. 13(1)(h))
The Hot Rod Harley project involves redevelopment of over 5 acres of property located
between Shoreline Drive, Terrace Street, and Western Ave., an area most recently
referred to as the Terrace Lots. This property was formerly part of the Teledyne
Continental Motors manufacturing facility. The project is located directly south of
Edison Landing, and east of the new National City Bank Building. A legal description,
map and site plan is included in Attachment P-1.
Several “eligible activities” have already been undertaken on the property. The subject
property has been determined to be “eligible property’ as defined by Act 381 through
information obtained from Phase | and ll Environmental Site Assessments and a
Baseline Environmental Assessment conducted by Lakeshore Environmental on August
18, 2006. Historic fill materials containing elevated concentrations of heavy metals,
similar to those found to exist along the Muskegon Shoreline, have been documented in
site soils, thereby defining the site as a “facility” pursuant to Part 201 of the Natural
Resources and Environmental Protection Act. A Due Care Plan has been prepared to
assure site redevelopment does not exacerbate these environmental conditions, and to
assure that no unacceptable exposures result from the redevelopment. This eligible
property includes alt real and personal property.
Hot Rod Harley Davidson is a full-service Harley Davidson Motorcycle dealership,
currently located at 590 Ottawa Street in Muskegon. They intend to relocate their
business to Downtown Muskegon, to become a part of Muskegon’s new revitalized
downtown and Muskegon Lake shoreline area. Hot Rod Harley hopes to attract
motorcyclists from throughout Michigan and the Midwest through a week-long
motorcycle festival (Bike Week).
The project will include removal of the former concrete foundation and former tunnels,
relocating utilities, construction of new infrastructure, and placement of fill materials to
raise the site grade and serve as a cap for impacted soils. A new steel and brick 2-story
40,000 square foot building will be constructed to house the new Hot Rod Harley
Davidson display showroom for Harley Davidson Motorcycles and apparel, Service
Department, Parts Department, parts storage area and motorcycle storage areas. The
exterior will include landscaping, parking, and drive areas, including a large parking lot to
the east of the main building. Site preparation activities have been ongoing since
summer of 2006; construction on the new building is planned to start in spring 2007.
Hot Rod Harley currently employs 20 with an average annual salary ranging from $30 —
$35,000. The new location will allow them to add 10 employees. The total estimated
capital investment in the project is estimated at over $3.7 million.
Eligible Activities, Financing, Cost of Plan (Sec. 13(1)(a),(b),(c),(d).(q))
Eligible activities that have been conducted on the Property by the purchaser/developer
include completion of a Phase | and I! Environmental Site Assessment, and preparation
City of Muskegon Brownfield Plan Amendment
February 2007
of a Baseline Environmental Assessment and Section 7a (Due Care) Compliance
Analysis. Due Care response activities will also be undertaken by the developer as
required by the Due Care Plan, such as capping impacted soils. However, no eligible
activity costs are proposed to be financed with tax increment revenues, since all new tax
increments are already being captured through the DDA. As such, there are no costs to
the City of Muskegon or its taxing jurisdictions as a result of the Hot Rod Harley
Davidson project being included in this Plan.
Single Business Tax Credit
The Hot Rod Harley project is included in the Plan to enable “qualified taxpayers” as
defined by Section 38d of Act 228 of 1975, as amended, to avail themselves of eligibility
for a credit against their Michigan single business tax liability for “eligible investments” as
defined by P.A. 228. “Eligible Investments” include demolition, construction, restoration,
alteration, renovation, or improvement of buildings or site improvements on eligible
property and the addition of machinery, equipment, and fixtures to eligible property after
the effective date of this Plan Amendment.
Effective Date of Inclusion in Brownfield Plan
The Hot Rod Harley project was added to this Plan on __3/27/07
City of Muskegon Brownfield Plan Amendment
February 2007
ATTACHMENT P-1
LEGAL DESCRIPTION AND SITE PLAN
HOT ROD HARLEY
wag WESTSHORE
CONSULTING
Engineers u Scientists « Surveyors = Planners
SITE MAP
FOR: SIDOCK GROUP
Fs LZ ~ — ~ s95'42'4
\gge>>, 7°2
SHORELINE DRIVE
a Lee, §53.74"
Pa aay, ~
5
&
S
=
SO4°9770"w
204.99°
[—5' MICHIGAN CONSOLIDATE GAS
EASEMENT L118 P, 364-370
/TM
/-)
curve BAYA //
LENGTH=324.8.
RADIUS=339.98"
L.C.=312.61'
L.C.B.=N23°05'02"W
DELTA=S4°44'32”
~
AS A PROFESSIONAL LAND SURVEYOR OF THE STATE OF MICHIGAN,
1 DO HEREBY CERTIFY THAT TO THE BEST OF MY PROFESSIONAL
KNOWLEDGE AND GELIEF, | HAVE SURVEYED THE PROPERTY AS
DESCRIBED AND SHOWN' HEREIN AND THAT THERE EXISTS NO VISIBLE
ENCROACHMENTS ON SAID PROPERTY UNLESS NOTED AND THAT
THIS SURVEY WAS PREPARED IN ACCORDANCE WITH A_ DESCRIPTION
FURNISHED BY OTHERS AND SHOULD BE COMPARED TO THE ABSTRACT
OF TITLE OR TITLE POLICY FOR ACCURACY, EASEMENTS, OR EXCEPTIONS.
THIS SURVEY DOES NOT EXTEND TO ANY UNNAMED PERSON WITHOUT
AN EXPRESSED RECERTIFICATION 8Y THE SURVEYOR.
FILE NO: WS-07—0040
SCALE: 1" = 100°
STANLEY J, KASS SURVEYED BY:
Ps. NO. 34972 DATE: ORN BY: BUA
; DEEDS PREPARED UTILIZING THIS LEGAL
PHONE |: (231)777—3447 OESCRIPTION FOR CONVEYANCES MUST
FAX : (231)773-3453 MEET THE REQUIREMENTS OF SECTION 109
© scopyacnr 2007 SHEET 1 OF 2 PARAGRAPH 3 AND 4 OF P.A, 591 OF 1996.
Pag WESTSHORE
CONSULTING
Engineers Scientists « Surveyors « Planners
SITE MAP
FOR: SIDOCK GROUP
PROPERTY DESCRIPTION
THAT PART OF BLOCKS 554, 556, 557 AND THAT PART OF VACATED MARKET STREET AND WATER
STREET, OF THE REVISED PLAT (OF 1903) OF THE CITY OF MUSKEGON, AS RECORDED IN LIBER
3 OF PLATS, PAGE 71, MUSKEGON COUNTY RECORDS, FURTHER DESCRIBED AS FOLLOWS:
COMMENCE AT THE SOUTH MOST CORNER OF BLOCK 556 OF SAID REVISED PLAT (ALSO BEING
THE INTERSECTION OF THE NORTHWESTERLY RIGHT-OF-WAY LINE OF WESTERN AVENUE AND THE
NORTHERLY RIGHT-OF-WAY LINE OF TERRACE STREET);
THENCE NORTH 61 DEGREES 13 MINUTES 00 SECONDS WEST ALONG THE NORTHERLY
RIGHT-OF-WAY LINE OF SAID TERRACE STREET, A DISTANCE OF 254.93 FEET TO THE POINT OF
BEGINNING;
THENCE CONTINUE NORTH 61 DEGREES 13 MINUTES 00 SECONDS WEST ALONG SAID LINE, A
DISTANCE OF 194.31 FEET;
THENCE NORTHWESTERLY ALONG THE EASTERLY RIGHT-OF-WAY LINE OF SAID TERRACE STREET ,
A DISTANCE OF 324.83 FEET ALONG A NON-TANGENT CURVE TO THE RIGHT CURVE DATA BEING
(RADIUS = 339.98 FEET, DELTA = 54 DEGREES 44 MINUTES 32 SECONDS, LONG CHORD =
312.61 FEET, LONG CHORD BEARING = NORTH 23 DEGREES 05 MINUTES 02 SECONDS WEST);
THENCE NORTH 04 DEGREES 17 MINUTES 13 SECONDS EAST ALONG SAID EASTERLY
RIGHT-OF-WAY LINE, A DISTANCE OF 117.71 FEET;
THENCE SOUTH 85 DEGREES 42 MINUTES 47 SECONDS EAST ALONG THE SOUTHERLY
RIGHT-OF-WAY LINE OF SHORELINE DRIVE, A DISTANCE OF 653.74 FEET;
THENCE SOUTH 04 DEGREES 17 MINUTES 10 SECONDS WEST, A DISTANCE OF 204.99 FEET;
THENCE NORTH 85 DEGREES 42 MINUTES 50 SECONDS WEST, A DISTANCE OF 241.05 FEET;
THENCE SOUTH 04 DEGREES 17 MINUTES 10 SECONDS WEST, A DISTANCE OF 68.66 FEET;
THENCE SOUTH 28 DEGREES 47 MINUTES 00 SECONDS WEST, A DISTANCE OF 222.24 FEET TO
THE POINT OF BEGINNING.
SAID PARCEL CONTAINS 4.73 ACRES, MORE OR LESS.
DEEDS PREPARED UTILIZING THIS LEGAL
DESCRIPTION FOR CONVEYANCES MUST
MEET THE REQUIREMENTS OF SECTION 109
PARAGRAPH 3 AND 4 OF P.A. 591 OF 1996.
DATE:
© corrricht 2007 SHEET 2 OF 2 FILE NO: WS—07—-0040
TExtand Prowete 2INGT-UnepOT-
NG CAANg 2/N9e0? F399 PH ERT
Commission Meeting Date: March 27, 2007
Date: March 16, 2007
To: Honorable Mayor & City Commission
From: Planning & Economic Development & Leisure Cee
Services
RE: Public Hearing for Michigan Natural Resources
Trust Fund Grant Application for Smith-Ryerson
Park.
SUMMARY OF REQUEST:
To hold a public hearing for public input for the Michigan Natural Resources Trust Fund
Grant Application regarding the first phase of proposed upgrades to Smith-Ryerson Park.
The application has been made available for viewing prior to the public hearing at the City
Clerk's Office and on the City’s website. The application is to build an ADA compliant
restroom with concession stand, an irrigation system through out the park, a large picnic
shelter with two grills and thirty-two twelve foot picnic tables, reconstruction of the basketball
courts with concrete, new poles, backboards, rims, and timed lighting system, a pedestrian
trail along the creek, the rehabilitation of the existing restroom building to be for storage only,
and a set of aluminum bleachers.
FINANCIAL IMPACT:
There is no impact for the 2007 budget year. If the application is approved, then this would
need to be budgeted for the 2008 budget year.
BUDGET ACTION REQUIRED:
The total estimated cost for the upgrades is $577,829. The City is required to have a
twenty-five percent (25%) match of those costs (excluding cents) which would be $144,458.
Therefore, this would need to be budgeted in 2008.
STAFF RECOMMENDATION:
To hold the public hearing, approve submittal of the grant application, the twenty-five (25%)
match, and to have the Mayor and Clerk sign the attached resolution.
COMMITTEE RECOMMENDATION:
None.
RESOLUTION NO. _ 2007-28(»)
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE SUBMITTAL OF THE MICHIGAN NATURAL
FOR SMITH-RYERSON
RESOURCES TRUST FUND GRANT APPLICATIONTO FOR
PARK UPGRADES AND COMMITTING THE CITY PAY A 25% MATCH
THE GRANT APPLICATION
hearing in the Muskegon Chronicle on Marc
WHEREAS, after the duly noticed publicrces h
Trust Fund Grant application for the Smith -
14, 2007 for the Michigan Natural Resou
Ryerson Park upgrades, and
WHEREAS, a public comment session was heldyMarc h 27, 2007 at the Muskegon City
Commission Chambers to provide an opportunit for citizens to express opinions, ask
and
questions, and discuss all aspects of the grant application for Smith-Ryerson park,
WHEREAS, the City Commission of the City of Muskegon must approve the submittal
of the application, and
ution
WHEREAS, the City Commission of the City of Muskegon must approve a resol
committing to a 25% match for the grant, and
NOW, THEREFORE BE IT RESOLVED by the Muskegon City Commission of theisCity
ng the public hearing, the City Commission
of Muskegon, Michigan that after holdi
approving the submittal of the Michigan Natural Resou rces Trust Fund Grant application
to a 25% match for the grant, and
for the Smith-Ryerson Park upgrades, committingment
authorizing the Mayor and Clerk to sign all docu s related to the submittal and
acceptance of the grant.
Adopted this 27° day of March, 2007
n, Wierengo,
Ayes: Davis, Gawron, Shepherd, Spataro, Warmingto
and Carter
Nays: None
Excused: None
Sn
View Warihingion, Mayor
Attest: Vinal RO A ol? (4 tan
er, MMC
Ann Marie Beck , City Clerk
CERTIFICATION
2007-28(b)
Ido hereby certify that the foregoing is a true and origi
nal copy of a resolution adopted
by the City Commission of the City of Muskegon at
a regular meeting thereof held on
March 27, 2007.
Ann Marie Becker, MMC, City Clerk
Date: March 27, 2007
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Transfer Retiree Healthcare Assets to MERS
SUMMARY OF REQUEST: The City has now completed the transfer of all
pension assets (formerly administered through the City’s pension boards) to MERS
(Municipal Employees Retirement System of Michigan). As you know, the City also
has set aside funds (approximately $13.5 million) for retiree healthcare benefits.
Historically these funds have been “piggybacked” onto the pension assets for
investment purposes. Staff is recommending that the City’s retiree healthcare assets
also be transferred to MERS.
FINANCIAL IMPACT: The total MERS asset base is $6 billion which means they
are able to diversify and achieve economies of scale in investments to a far greater
extent than we can by ourselves. We expect that our participation in this program will
improve investment returns and grow the accumulated assets so that we are better
positioned to pay future retiree healthcare costs without severe disruption to the
operating budget.
BUDGET ACTION REQUIRED: No current year budget impact. The expected
higher returns achievable through MERS will reduce the impact on future budgets
and help the City achieve full funding of these long-term liabilities.
STAFF RECOMMENDATION: Approval of the attached RETIREE HEALTH
FUNDING VEHICLE UNIFORM RESOLUTION and authorization for staff to transfer
the City’s accumulated retiree healthcare funds to the MERS.
COMMITTEE RECOMMENDATION: At its last official meeting, the City’s
pension boards voted to recommend to the City Commission the transfer of retiree
healthcare assets fo MERS.
9/18/97 1
TVdIONDASTIAOTGLNAWULIYWaLSA
Jusoienfyl| SO[JY2HA1PI0NWd
WHOSL
%0S
syo0Ig%O',HSUS$E.}O0PiN
isnspuog
aUPIBSAH Ayenubd3
yseo
fsaypow%u}0gS¢
OpP-TWlaJUj|BsEYeLSIAod+
A%0'GS|]NEUeO]nysypaou01gSs}q9 yDjoubasni
J-poa1ayjsSesvqVld04BUwONLyo}eDP0Jeu)pNUjaIy%1O9L'QEASGIsd9W40?a1YmMdojppNeysuipoaanlisWBe4}-lJ|80eS4sOO)g1y]JPLuIJoIUUlOgOSL:SUY}ND}}HEMY[I%A9ieJ8Ge"AgbjEPeWL
SLtea, YAJUL]SIEINA}sn9dyjoubaBG>SLNAW IQ@
TVdIONASIFAOTIANLGINSILAYWHLSA
00E
SO@YWAd UOl]BeJyWsng uAoyBansb| SP&leHWxOA!Nu4 UpWwoaBOxys!n
SUSI Ainby
wINjey
%O'OL %0'8 %0'9 KOT
SJ‘$“Up1as9WIyO2MeirAoBjYlR
~
TYdIONGASATd AOINGAYLAYWOLSA 1 A ud ez s - w o i a y l b u e d o i n S a
gSJ0y“GejpnAsouiq}.Ncdr
SJ{s“UpBaLiNOlo}IeAj8Y1RW
SluiHswAWnyTIoE}dpOe1aUjRBiSbuogxep| WvEIO'DTS L8GPBE RGWQE'S Y%rLB’E CWb8Sv'L OEWISV GSHNEM%A9OLBA'ePEI8DVYEvbAGI06SH'7NO£De
pSYAW[2}01ue|d ELiTLbAaD OsblZeSWEGSkA?Lpaamzijeeqnuujogoa))ssr¢aliytUe|AGs(ipBEeSIokxRkOy 6l5H1aLds>gi%Qe0‘8k'oy: SIEBHsAGaVL O%C0SZ0'eOdb
SuanoteJPENld40pg92-SLNAWIE
02sreok|LsIuaSwieh|1oH|ldS:UAFLbuelda-yINO®yngilnjjbBoSsB6,p-1gg8““z0¢:‘d},
City of Muskegon
January 30, 2007
INDEX
Section 1: MERS Overview .......cccsssccsssccsesssssssccesssscessceessssssssescscesssseeseeneeiee 2
Section 2: RETIREE HEALTH FUNDING VEHICLE OVERVIEW ...3
Section 3: MERS Investment .........cccsssscsssescntscessecseeesesetsesensenennsssensenaeeaes 5
MERS Total Market Fund o.....ccesecesessecseecseneessscessessesseseseenerenesseeeersensseesteneneacearantes 5
Methodology ..ccccccscecssessscesscssessneesssnenenssesssrssssesccassescereeneseseesenssaseecseseessateceesscasnareceesnnes 5
SECTION 4: FEE STRUCTURE oe ceccsccsssscsescseecsceeeeeseneenessesenersersensesseeeaesasieeeeayes 6
City of Cadillac, Dale Walker, (231) 775-0181 .....ssecssecseseseseeesesseceneerstents 8
Section 7: Uniform Resolution......cccssssssccsccssescesesseenessesenenesessacseessesees 8
Page |
SECTION 1: MERS OVERVIEW
The Municipal Employees' Retirement System of Michigan (MERS) is a
statewide public employee retirement plan. MERS serves governmental entities like
counties, cities, townships, villages, road commissions, hospitals, medical care facilities,
libraries, community mental health boards, transportation authorities, and similar
governmental entities.
MERS operated under the umbrella of state government from 1945 until Public
Act 220 of 1996. This provided the system authority to hold a vote of the certified
delegates of the participating municipalities to remove MERS from state government.
Today, MERS provides benefits to more than 65,000 members in more than 680
municipalities.
MERS is located in Lansing Michigan. We are available for one-on-one meetings
at the City’s request. Additionally, regional meetings are scheduled throughout the year
to bring news and information directly to our members.
Page 2
SECTION 2: RETIREE HEALTH FUNDING VEHICLE OVERVIEW
MERS developed the Retiree Health Funding Vehicle as a means to help
municipalities in Michigan save and grow assets within the MERS investment portfolio
to offset future retiree health care liabilities using MERS economies of scale. The
funding vehicle, created by a Private Letter Ruling from the IRS, provides advantages in
light of the Governmental Accounting Standards Board Other Post Employment Benefits
(GASB OPEB) reporting requirements.
MERS will assist the City of Muskegon in maximizing the earnings of its trust
fund balance within our Internal Revenue Service (IRS) approved medical trust for
Retiree Health Care costs, MERS Retiree Health Funding Vehicle. The City may
choose to adopt the program for existing funds and new funds. The program allows
public employers like the City that pro-actively set aside assets to take advantage of
MERS investment returns within its portfolio of over $5.6 billion. MERS primary
investment objective is to maximize the long-term rate of return with a high degree of
prudence and integrity.
All funds are invested as authorized by the Michigan Public Employee Retirement
System’s Investment Act, 1965 PA 314, as amended. In addition, the MERS Retirement
Board shall act as the investment fiduciary (made up of a chairperson, 3 employee
members, 2 office members, 2 public members and | retiree member). Also, to the
extent permitted by law, the assets will be commingled with other funds for investment
purposes only. MERS will maximize investment earnings, provide quarterly and annual
reporting, and make disbursements to the City upon request.
The Retiree Health Funding Vehicle is a medical trust created by a Private Letter
Ruling from the IRS Private Letter Ruling No. 2003-136326. The Municipal Employees
Retirement Act of 1984, 1984 PA 427, section 36(2)(a); MCLA 38.1536(2)(a), authorizes
MERS to make available benefit programs for municipal employees employed by a
Page 3
participating municipality or court. The Internal Revenue Code, section 115(1) states in
part that gross income does not include “income derived from...exercise of any essential
governmental function and accruing to a...political subdivision” of a State. The IRS has
ruled that providing health benefits by a political subdivision for its employees and
retirees is an “essential governmental function” (Revenue Rulings 77-261 and 90-74).
Under the Municipal Employees Retirement Act, section 2C(3), MCLA 38.1502C(3), the
Legislature has provided that MERS is a public corporation, “an instrumentality of the
participating municipalities and participating courts.”
The City may fund a MERS Retiree Health Funding Vehicle account on a cash or
actuarial basis. The City solely determines the contribution structure. The contributions,
all investments, receipts, and disbursements with regard to the trust shall be used solely
for the exclusive benefit of the participants and their dependents, as applicable, under the
Retiree Health Funding Vehicle and defraying the reasonable expenses of administering
the trust and the program. MERS will ensure that any payment from the Retiree Health
Funding Vehicle conforms to the provisions in our IRS approved Trust Agreement and
Plan Document, and of any applicable law. Payments from the Retiree Health Funding
Vehicle account shall be made by electronic funds transfer to the order of the City of
Muskegon.
To implement the Retiree Health Funding Vehicle, the City will need to submit a
Retiree Health Funding Vehicle Uniform Resolution, attached in Section 7. Once the
resolutions are received, account information and contribution and reporting instructions
will be provided in order to make the initial transfer and ongoing contributions.
Page 4
SECTION 3: MERS INVESTMENTS
MERS Total Market Fund
MERS Total Market Fund’s objective is to achieve reasonable growth and income
while minimizing market volatility relative to broader equity markets. The portfolio
seeks returns that exceed the actuarial assumption rate of 8% annually and that are 3.5%
over the annual rate of inflation. The portfolio offers diversified exposure to all major
investment asset classes within established and prudent risk parameters.
Methodology
The portfolio is managed in conformance with the Michigan Public Employee
Retirement Systems Investment Act, 1965 PA 314, as amended. MERS professional
investment personnel under the authority of the MERS Retirement Board oversee the
portfolio. The MERS Retirement Board enforces investment guidelines that govern the
portfolio. These guidelines are used to make investment decisions that maximize long-
term capital gains and control the downside risk to which the assets are exposed. To
achieve this goal, active management along with diversification by asset class and style
are employed. Every effort is made to minimize costs without adversely affecting
portfolio performance.
Page 5
Performance History
Annualized returns gross of fees as of December 31, 2005
One Two Three Five Ten
Year Years Years Years Years
Bu = ll
NERS aly
Benchmark
a ry nS
es ey te ee
performance
SECTION 4: FEE STRUCTURE
MERS will charge an annual administration fee of 45 (45%) basis points on the
entire portfolio. Upon written notification, this fee is subject to adjustment of MERS
underlying Investment Management fees increase.
Page 6
SECTION 5: ACTUARIAL HEALTHCARE VALUATIONS
GASB OPEB will require most municipalities to identify and account for their future
retiree health care liabilities on their financial statements. MERS has arranged for
Gabriel, Roeder, Smith, & Company (GRS) to provide OPEB valuations at discounted
prices.
: 2nd and Later
First Year Years
Fully Self = Fully Self
Insured = Insured .-Insured » Insured
Fee for 1.OPEB Benefit Group. 3
1, Rate Plan, and-Up to 6 Premium Rate Schedules. ° $4,900. $8, : § 95 $5,780
* 500 3,950
Fee for each additional OPEB BenefitGroup, «$800. $800. $450. $450
Fee foreach OPEB Benefit Group with changes... : oa oe $150. $150
‘Fee for each additional Rate Plan. : $200 $200 $150 $150
‘Fee for each Rate Plan that has assets oe $100 $100 $50. $50
Fee for each additional Premium Rate Schedule $250 $500 $250 $350
Fee for each Premium.Rate Schedule for (Dental, : $150 $150 $150 $150
Mision, Retiree Life insurance, etc.)
Notes: 1) Lower fee for 2nd and later years based on annual valuations. 2) This fee schedule covers plans with a
typical amount of complexity, which should include 80% or more of MERS employers. For plans with well above
average complexity, the fees will be negotiated separately at the beginning of the valuation process (after benefit
summaries are submitted).
Discount Fee Schedule
OPEB provisions and consequently OPEB studies are generally more complicated than pension benefit
provisions and studies. In order to understand the fee schedule, the employer needs to use three new terms:
i) OPEB Benefit Group, ii) Rate Plan, and iti) Premium Rate Schedule.
An OPEB Benefit Group is a group of participants (active members, retirees, vested former members) that
must be covered by the same OPEB provisions (benefits and eligibility), and must have the same MERS
retirement and vesting conditions. In order to save on fees, an employer may combine the results of several
OPEB Benefit Groups into a single set of results, called a Rate Plun, The valuation report will then only
show the Rate Plan results, instead of showing the results separately for each OPEB Benefit Group.
A Premium Rate Schedule is a bit more complicated, In the typical case of an employer who is fully
insured, or a self-insured employer that uses an administrator, each plan “suffix” is a Premium Rate
Schedule.
Page 7
In the case of other self-insured employers, a Premium Rate Schedule is defined as a unique
medical/prescription drug benefit plan. It is common to have 4-6 of these schedules, which is why the base
fee includes 6 schedules.
SECTION 6: RETIREE HEALTH FUNDING VEHICLE
REFERENCES
City of Cadillac, Dale Walker, (231) 775-0181
CMH for Central Michigan, John Obermesik, (989) 773-6961
Lapeer County, Craig Horton, (810) 667-0245
SECTION 7: UNIFORM RESOLUTION
Page 8
RETIREE HEALTH FUNDING VEHICLE
UNIFORM RESOLUTION
CITY OF MUSKEGON
(Participating Employer)
Municipal Employees' Retirement System of Michigan
1134 Municipal Way
Lansing, MI 48917
517-703-9030
Restated: November 15, 2005
(Adopted: May 14, 2003 and
amended December 17, 2004)
Retiree Hlth FundVeh 11-15-05
2007-29(a)
UNIFORM RESOLUTION ADOPTING THE MERS
RETIREE HEALTH FUNDING VEHICLE
(Excluding Plans Governed by Internal Revenue Code Section 401(h))
WHEREAS, the Municipal Employees’ Retirement System ("MERS") Plan Document of
1996, effective October 1, 1996, authorized the Municipal Employees’ Retirement Board
("Board") to establish additional programs including but not limited to defined benefit and
defined contribution program (MERS Plan Document Section 36(2)(a)); and the Municipal
Employees Retirement Act of 1984, Section 36(2)(a) as amended by 1996 PA 220, MCL
38.1536(2)(a));
WHEREAS, the Board has previously authorized MERS' establishment of a retiree
health funding vehicle ("RHFV" or "Program"), which a participating municipality or court, or
another eligible public employer that is a political subdivision of the State which constitutes a
"municipality" under MERS Plan Document Section 2B(4); MCL 38.1502b(2) ("Eligible
Employer"), may adopt for its Eligible Employees;
WHEREAS, the Board has established a governmental trust under Section 115 of the
Internal Revenue Code (the "Trust Fund") to hold the assets of the RHFV, which Trust Fund
shall be administered under the discretion of the Board as fiduciary, directly by (or through a
combination of) MERS or MERS' duly-appointed Program Administrator;
WHEREAS, 1999 PA 149, the Public Employee Health Care Fund Investment Act,
MCL 38.1211 et seg. (“PA 149”) provides for the creation by a public corporation of a public
employee health care fund, and its administration, investment, and management, in order to
accumulate funds to provide for the funding of health benefits for retirees and beneficiaries;
WHEREAS, a MERS health care trust fund constitutes a governmental trust established
by a public corporation (“municipality”) as an Eligible Employer, provided that all such
employers shall be the State of Michigan, its political subdivisions, and any public entity the
income of which is excluded from gross income under Section 115 of the Internal Revenue
Code; provided further, that the health care trust shall not accept assets from any defined benefit
health account established under Section 401(h) of the Internal Revenue Code,
WHEREAS, adoption of this Uniform Resolution (the “Uniform Resolution”) by the
Eligible Employer is necessary and required in order that the benefits available under the MERS
Retiree Health Funding Vehicle may be extended;
WHEREAS, this Uniform Resolution has been approved by the Board under the
authority of 1996 PA 220, MERS Plan Document Section 36(2)(a), MCL 38.1536(2)(a),
declaring that the Board "shall determine . . . and establish" all provisions of the retirement
system. The MERS RHFV shall not be implemented with respect to any Eligible Employer
unless in strict compliance with the terms and conditions of this Resolution, the Trust Document,
and Trust Agreement.
Retiree Hlth FundVeh 11-15-05 |
e It is expressly agreed and understood as an integral and nonseverable part of
extension or continuation of coverage under this Uniform Resolution Adopting
MERS Retiree Health Funding Vehicle that Section 43B of the MERS Plan
Document shalf not apply to this Uniform Resolution, its administration or
interpretation.
e In the event any alteration of the language, terms or conditions stated in this Uniform
Resolution Adopting MERS Retiree Health Funding Vehicle is made or occurs, under
MERS Plan Document Section 43B or other plan provision or other law, it is
expressly recognized that MERS and the Board, as fiduciary of the MERS Plan and
its trust reserves, and whose authority is nondelegable, shall have no obligation or
duty: to administer (or to have administered) the MERS RHF'V or its Trust Fund; or
to continue administration.
NOW, THEREFORE, BE IT RESOLVED that the governing body adopts the MERS
PA 149 Health Care Trust Fund as provided below.
SECTION 1. MERS RHFV PROGRAM
EFFECTIVE APRIL 1 ,20.07 _, the MERS Retiree Health Funding
Vehicle is hereby adopted by the CITY OF MUSKEGON
(MERS municipality or court or other eligible employer)
CONTRIBUTIONS shail be made only by the Eligible Employer, remitted to MERS by
the Eligible Employer, and credited to the Eligible Employer’s separate fund within the trust sub-
fund for MERS RHEV. As this Plan is funded solely by employer, on a cash or actuarial basis as
determined by the employer, there is no requirement for a Participation Agreement establishing
the schedule of contributions.
INVESTMENT of funds accumulated and held in the Fund shall be held in a separate
reserve and invested on a pooled basis by MERS subject to the Public Employee Retirement
System Investment Act ("PERSIA"), 1965 PA 314, as provided by MERS Plan Document
Section 39; MCL 38.1539, and PA 149.
THE ELIGIBLE EMPLOYER shall abide by the terms of MERS RHFV, including all
investment, administration, and service agreements, and all applicable provisions of the Code
and other law. It is affirmed that no assets from any defined benefit health account established
under Section 401(h) of the Internal Revenue Code shall be transferred to, or accepted by,
MERS.
SECTION 2. IMPLEMENTATION DIRECTIONS FOR MERS
AS RHEV INVESTMENT FIDUCIARY AND TRUSTEE
(A) | The governing body of this Bligible Employer desires that all assets placed in its
MERS RHEFV (as a sub-fund within all pooled Trust Funds with MERS) be
administered by MERS, which shall act as investment fiduciary with all powers
Retiree Hlth FundVeh 11-15-05 2
provided under Public Employee Retirement System Investment Act, PA 149, all
applicable provisions of the Internal Revenue Code and other relevant law.
(B) The governing body desires, and MERS upon its approval of this Resolution
agrees, that all funds accumulated and held in the MERS RHFV Trust Fund shall
be invested and managed by MERS within the collective and commingled
investment of all fimnds held in trust for all Eligible Employers.
(C) All monies in the MERS RHFV Trust Fund (and any earnings thereon, positive or
negative) shall be held and invested for the sole purpose of paying health care
benefits for the exclusive benefit of “Eligible Employees” who shall constitute
“qualified persons” who have retired or separated from employment with the
Eligible Employer, and for any expenses of administration, and shall not be used
for any other purpose, and shall not be distributed to the State.
(D) The Eligible Employer will fund its MERS RHFV Trust sub-fund to provide
fands for health care benefits for “Eligible Employees” who shall constitute
“qualified persons.” Participation in and any coverage under RHFV shall not
constitute nor be construed to constitute an “accrued financial benefit” under
Article 9 Section 24 of the Michigan Constitution of 1963, nor shail any
contribution method for Eligible Employer funding other than “pay as you go”
cash funding be required or imposed, and all benefits, rights, and obligations
conferred by or arising under RHFV shall be as provided under the RHFV
documents.
(E) The Eligible Employer generically designates the following groups of persons as
“Eligible Employees” who shall constitute “qualified persons,” to receive retiree
health care benefits subsidized under the MERS RHFV trust sub-fund. Groups
may include any dependent(s) as specified in your bargaining agreement and/or
personnel policy (provide copies of any governing agreement or other policy):
For example “non-union employees”
RETIRED FULL-TIME EMPLOYEES OF THE CITY OF MUSKEGON AND
THEIR DEPENDENTS AS DESCRIBED IN APPLICABLE AGREEMENTS.
(F) CITY FINANCE DIRECTOR (Use title of official, not name) shall be the
Eligible Employer's RHFV Coordinator; shall direct payment of fund monies
for the benefit of the Eligible Employees identified in (E) under any MERS (or
non-MERS) retiree health care benefit program, including, but not limited to,
MERS HCSP, or MERS Premier Health; make investment allocations of the
Employer’s sub-trust fund within MERS-approved portfolios; receive necessary
reports, notices, etc.; shall act on behalf of the Eligible Employer; and may
delegate any administrative duties relating to the Fund to appropriate departments.
Retiree Hith FundVeh 11-15-05 3
SECTION 3. EFFECTIVENESS OF THIS RESOLUTION
This Resolution shall have no legal effect until a certified copy of this adopting
Resolution shall be filed with MERS, and MERS determines that all necessary requirements
under MERS Plan Document Section 36(2)(a), 1999 PA 149 and other relevant laws, and this
Resolution have been met. Upon MERS’ determination that all necessary documents have been
submitted, MERS shall record its formal approval upon this Resolution, and return a copy to the
Eligible Employer's RHFV Coordinator as identified above.
In the event an amendatory resolution or other action by the Eligible Employer is
required by MERS, such Resolution or action shall be deemed effective as of the date of the
initial Resolution or action where concurred in by this governing body and MERS (and the
Program Administrator if necessary). Section 54 of the MERS Plan Document shall apply to this
Resolution and all acts performed under its authority. The terms and conditions of this
Resolution supersede and stand in place of any prior resolution, and its terms are controlling.
I hereby certify that the above is a true copy of the Resolution Adopting the MERS Retiree
Health Funding Vehicle adopted at the official meeting held by the governing body of this
municipality:
On March 27 ,20 07 oe C a (Signature oF ized official) ~
atifhor
ste n J. Warmington, Mayor
Please send MERS fully executed copy of:
1. Retiree Health Funding Vehicle Uniform Resolution
2. Certified minutes stating Governing Body approval; and
3, Union contract language and/or personnel policy
RECEIVED AND APPROVED BY THE MUNICIPAL EMPLOYEES'
RETIREMENT SYSTEM OF MICHIGAN
Dated: | , 20
(Authorized MERS signatory)
Retiree Hith FundVeh 11-15-03 4
MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM
RETIREE HEALTH FUNDING VEHICLE
CONTACT INFORMATION
Employer Name CITY OF MUSKEGON
Contact Person and Title TIMOTHY J. PAUL
Phone (231) 724 _- 6709 Ext
Facsimile (231) 726 - 2325
E-mail TIM.PAUL@SHORELINECITY.COM
Address PO BOX 536
City MUSKEGON Zip 49443-0536
AGENDA ITEM NO.
CITY COMMISSION MEETING
TO: Honorable Mayor and City Commissioners
FROM: Bryon L. Mazade, City Manager
DATE: March 20, 2007
RE: Army Corps of Engineers Supplemental Agreement — Pier Safety
SUMMARY OF REQUEST:
To approve Supplemental Agreement No. 1 to the Army Corps of Engineers Lease No.
DACW35-1-91-3004. This supplemental agreement will incorporate the South Breakwater
of the Muskegon Harbor into the lease to allow the placement of pier safety devices.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the attached Supplemental Agreement.
COMMITTEE RECOMMENDATION:
None.
DEPARTMENT OF THE ARMY
DETROIT DISTRICT, CORPS OF ENGINEERS . .
BOX 1027 MAR 1 § 2007
DETROIT, MICHIGAN 48231-1027
Ciyy Ae
March 19, 2007
IN REPLY REFER TO
Real Estate Division
Byron L. Mazade
City Manager
The City of Muskegon
933 Terrace Street
P.O. Box 536
Muskegon, Michigan 49443-0536
Dear Mr. Mazade:
This is in reference to your request to amend Department of the Army Lease No. DACW35-1-91-3004 to
include the U.S. South Breakwater of the Muskegon Harbor Federal Navigation Project as part of the leased
premises along with the installation, operation and maintenance of pier safety devices on the structure.
Attached for your review are four copies of Supplemental Agreement No. 1 which will serve as a
amendment to the lease. Also attached is a Certificate of Authority.
Please sign and return three copies of the agreement, sign and return the certificate. The fourth copy is for
your reference until a fully executed copy is returned for your records.
In accordance with Condition 17 of the original lease, please furnish this office with an updated Certificate
of Liability Insurance or statement of self insurance. If you have any questions, please contact Robert
Jameson at 313-226-2767.
ictor L. Kotwicki
Chief, Real Estate Division
Detroit District
Enclosures
Supplemental Agreement No.
DACW35-1-91-3004
NOTE: THE CERTIFICATE OF AUTHORITY must be executed by an individual
other than by the person who sign must certify
ed the agreement. The individualthat
that the official who signed the agreement was authorized to act in capacity.
CERTIFICATE OF AUTHORITY
I, Ann Marie Beckersigning the agreem,ent)do hereby certify that I am the
{someone other than the person
City Clerk of the City of Muskegon,
(my position of responsibility within the organization)
Stephen J. Warmington 1
Michigan (City) and that
the
who signed the agreement on behalf of the City was at
Mayor '
time of signature its (position held)
.
lf
and that the person who executed the agreement on beha
of the City acted within his/her statutory authority.
ation
IN WITNESS WHEREOF, I have made and executed this certific
this 27 day of March ' 2007
(Name)
Ann Marie Becker, MMC
city Clerk
(Title)
DEPARTMENT OF THE ARMY
DETROIT DISTRICT, CORPS OF ENGINEERS
BOX 1027
DETROIT, MICHIGAN 48231-1027
April 6, 2007
IN REPLY REFER TO
Real Estate Division
Byron L. Mazade
City Manager
The City of Muskegon
933 Terrace Street
P.O. Box 536
Muskegon, Michigan 49443-0536
Dear Mr. Mazade:
Attached is a fully executed copy of Supplemental Agreement No. 1 to Department of the Army Lease
No. DACW35-1-91-3004 to include the U.S. South Breakwater of the Muskegon Harbor Federal Navigation
Project as part of the leased premises, along with the installation, operation and maintenance of pier safety
devices on the structure.
Thank you very much for your assistance on this matter. If you have any questions, please contact Robert
Jameson at 313-226-2767.
Singerely,tL
Lhoet
Kotwicki
Chief, Real Estate Division
Detroit District
Enclosures
DEPARTMENT OF THE ARMY
DETROIT DISTRICT, CORPS OF ENGINEERS
SUPPLEMENTAL AGREEMENT NO. 1
TO DEPARTMENT OF THE ARMY
LEASE NO. DACW35-1-91-3004
day of __March
THIS SUPPLEMENTAL AGREEMENT entered into this 27°F 2007_, by and
between THE CITY OF MUSKEGON, MICHIGAN, hereinafter called the lessee and the SECRETARY OF THE
ARMY, hereinafter called the government.
WITNESSETH:
WHEREAS, the parties hereto entered into Department of the Army Lease No, DAC W35-1-91-3004, dated
28 July 1992, which authorized the Lessee’s use and improvements upon U.S, Property located at the Pere Marquette
channel area, Muskegon Harbor Federal Navigation Project, Michigan, as more accurately described in the basic lease; and
WHERBAS, the lessee has requested that the leased premises be expanded to include the U.S, South Breakwater and to
include pier safety devices and lighting; and
WHEREAS, the Government has no objection to this request.
NOW, THEREFORE, effective 26 March 2007, the Lease is modified in the following particulars, but in no others:
The following conditions are ADDED hereto and made part of the lease:
“38, SPECIAL PROVISIONS
a. This agreement incorporates the U.S. South Breakwater to the leased premises.
b. This lease authorizes the City of Muskegon to construct, operate and manage various passive recreational
activities on the premises, including the construction, operation and maintenance of pier safety devices, such as lifesaving
rings, throw bags (rescue bags), emergency call boxes, safety signs and other related devices with appurtenances.
c. All construction activities on the leased premises, including the pier safety devices, must be coordinated with
the Area Engineer, Grand Haven Area Office, 307 South Harbor Street, Grand Haven, Michigan, 49417 (telephone 616-
842-5510). This coordination process is required to insure that the lessee’s construction is consistent with the purpose and.
integrity of the Muskegon Harbor Federal Navigation Project, and is not intended as a detailed engineering review. The
Federal Government assumes no responsibility or liability for the technical sufficiency of the lessee’s 's construction.
d. Any safety devices that include the display of lights or signals shall comply with applicable requirements as
prescribed by the U.S. Coast Guard or the District Engineer.
e. The lessee is responsible for inspection and maintenance, at intervals determined in its discretion, to assure that
the safety devices are present and in good operable condition. The lessee shall also be responsible for installing
replacements as necessary, in its discretion, to ensure that the safety devices are available when it deems seasonally
appropriate.
f. If the District Engineer determines that any safety devices interfere with the operations and/or maintenance of the
Federal Navigation Project, the grantee shall alter, modify or remove the devices, as necessary.”
Supplemental Agreement No. 1
DACW35-1-91-3004
EXCEPT AS MODIFIED ABOVE, all other terms and conditions of the lease, remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Supplemental Agreement No. | on the date first
above written.
THE CITY OFM KEGON, MICHIGAN
sbasnen\ ‘wdeington (printed name)
Mayor (title)
BY AUTHORITY OF THE
SECRETARY OF THE
ize
(ACTOR
LE. KOTWICKI ©
Chief, Real Estate Division
Detroit District
LIGIHX4 V
yeUJoYHBlnd}isu!Lj‘eUOwaNIdBnys
AV OINDIA INV?
tyr
- of
sf
=
os
ALwnod
3dSaNq-dvOOAlHLda“sSv'NiHLVNaOuSvYaLVMAVSYE
. vOOE-T6-T-SEMOVG “ON
asvwa1
MICHIGAN MUNICIPAL RISK MANAGEMENT AUTHORITY
COVERAGE OVERVIEW
Member: City of Muskegon Member No: I11
Date of Original Membership: March 01, 1986
Overview Dates: March 01, 2007 to March 01, 2008
Member Representative: Timothy J. Paul Telephone #: (231) 724-6713
Regional Risk Manager: Tbex Insurance Agency Telephone #: (248) 538-0470
A. Introduction
The Michigan Municipal Risk Management Authority (hereinafter "MMRMA") is created by authority
granted by the laws of the State of Michigan to provide risk financing and risk management services to
eligible Michigan local governments. MMRMA is a separate legal and administrative entity as
permitted by Michigan laws. City of Muskegon (hereinafter "Member") is eligible to be a Member of
MMRMaA. City of Muskegon agrees to be a Member of MMRMA and to avail itself of the benefits of
membership.
City of Muskegon is aware of and agrees that it will be bound by all of the provisions of the Joint
Powers Agreement, Coverage Documents, MMRMA rules, regulations, and administrative procedures.
This Coverage Overview summarizes certain obligations of MMRMA and the Member. Except for
specific coverage limits, attached addenda, and the Member's Self Insured Retention (SIR) and
deductibles contained in this Coverage Overview, the provisions of the Joint Powers Agreement,
Coverage Documents, reinsurance agreements, MMRMA rules, regulations, and administrative
procedures shall prevail in any dispute. The Member agrees that any dispute between the Member and
MMRMaA will be resolved in the manner stated in the Joint Powers Agreement and MMRMA rules.
B. Member Obligation - Deductibles and Self Insured Retentions
City of Muskegon is responsible to pay all costs, including damages, indemnification, and allocated
loss adjustment expenses for each occurrence that is within the Member's Self Insured Retention
(hereinafter the "SIR"). City of Muskegon's SIR and deductibles are as follows:
3/1/07 to 3/1/08 City of Muskegon
Table Il
Member Deductibles and Self Insured Retentions
COVERAGE DEDUCTIBLE SELF INSURED
RETENTION
Liability None $100,000
Vehicle Physical Damage $1,000 / Vehicle $15,000 / Vehicle
, $30,000 / Occurrence
Property and Crime $1,000 / Occurrence 10% of the remaining up to
$100,000 of loss
Sewage System Overflow N/A N/A
The Member must satisfy all deductibles before any payments are made from the Member's SIR or by
MMRMA.
The City of Muskegon is afforded all coverages provided by MMRMA, except as listed below:
1.Sewage System Overflow
2.
3,
4.
All costs including damages and allocated loss adjustment expenses are on an occurrence basis and
must be paid first from the Member's SIR. The Member's SIR and deductibles must be satisfied fully
before MMRMA will be responsible for any payments. The most MMRMA will pay is the
difference between the Member's SIR and the Limits of Coverage stated in the Coverage Overview.
City of Muskegon agrees to maintain, at all times, on account with MMRMA, sufficient funds to
pay its SIR obligations. The Member agrees to abide by all MMRMA rules, regulations, and
administrative procedures pertaining to the Member's SIR.
C. MMRMA Obligations - Payments and Limits of Coverage
After the Member's SIR and deductibles have been satisfied, MMRMA will be responsible for
paying all remaining costs, including damages, indemnification, and allocated loss adjustment
expenses to the Limits of Coverage stated in Table I]. The Limits of Coverage include the
Member's SIR. payments.
The most MMRMA will pay, under any circumstances, which includes payments from the Member's
SIR, per occurrence, is shown in the Limits of Coverage column in Table Il. The Limits of Coverage
includes allocated loss adjustment expenses.
3/1/07 to 3/1/08 City of Muskegon
TABLE
Limits of Coverage
Liability and Motor Vehicle Physical Damage Limits of Coverage Per Occurrence Annual Aggregate
Member All Members Member All Members
1 Liability 15,000,000 NIA N/A NIA
2 Judicial Tenure 100,000 NIA NA NIA
3. Sewage Systems Overflows 0 N/A 0 NIA
4 Volunteer Medical Payments 25,000 N/A NIA N/A
5 First Aid 2,000 NIA NIA N/A
6 Vehicle Physical Damage 1,500,000 NIA NIA N/A
7 Uninsured/Underinsured Motorist Coverage (per person) 106,000 NIA NIA NA
Uninsured/Underinsured Motorist Coverage 250,000 NIA NIA NA
8 Michigan No-Fault Per Statute N/A N/A NIA
9 Terrorism §,000,000 NIA NA 6,000,000
Property and Crime nang [Ranta] Cama
1 Buildings and Personal Property 76,579,044) 300,000,000 N/A NIA
2 Personat Property in Transit 1,000,000: NIA NIA NIA
3 Unreported Property 5,000,000 NIA N/A NIA
4 Member's Newly Acquired or Constructed Property §,000,000 NIA NIA NA
5 Fine Arts 1,000,000 NIA N/A N/A
6 Debris Removal (25% of insured direct loss pius) 25,000 NIA NIA NIA
7 Money and Securities 4,000,000 N/A N/A NIA
8 Accounts Receivable 1,000,000 NIA N/A NIA
9 Fire Protection Vehicles, Emergency Vehicles, and Mobite
_ Equipment (Per Unit) 1,000,000 5,000,000 NIA N/A
10 Fire and Emergency Vehicle Rental (12 week limit) 1,000 per week NIA NIA NIA
11. Structures Other Than a Building 5,000,000 NIA N/A NIA
12 Storm or Sanitary Sewer Back-Up 1,000,000 NIA NIA N/A
43 Marine Property 250,000 NIA N/A NIA
14 Other Covered Property 10,000 N/A N/A NA
15 Income and Extra Expense 4,000,000 NIA. N/A NIA
16 Blanket Employee Fidelity 4,000,000 NIA NIA NIA
17 Earthquake 5,000,000 NIA §,000,000] 100,000,000
18 Flood §,000,000 NIA 5,000,000 | 100,000,000
19 Terrorism 25,000,000 25,000,000 NIA N/A
3/1/07 to 3/1/08 City of Muskegon
DATE: March 20, 2007
TO: Honorable Mayor and Commissioners
FROM: Mark Kincaid, Deputy Director of Public Safety
RE: Concurrence with the Housing Board of Appeals Notice and Order
to Demolish. Dangerous Building Case #: EN-050082
SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
1211 3rd— Area 10 is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.
Case# & Project Address: # EN-050082
Location and ownership: This structure is located on Third between Merrill and
Mason and is owned by James G. Hightower Sr., 312 SW D Street, Bentonville,
AR 72712
Staff Correspondence: A dangerous building inspection was conducted on
02/03/05. The Notice and Order to Repair was issued on 02/09/05. An interior
inspection was conducted 11/02/05. Case came before HBA 10/06/05 and was
tabled until November 2005 meeting to allow owners time to obtain appropriate
permits and provide timeline for repairs. The HBA on 01/05/06 declared the
structure dangerous, substandard and a public nuisance.
Owner Contact: Owners sent a letter to Inspection Department dated 03/22/05
stating plans to rehab structure and make home their permanent dwelling. At
present owners live in Arkansas. A building permit was issued 04/11/06 but
owners had problems with contractor. A electrical permit was issued and was
finaled 11/07/06. The owner's brother has been acting as liaison and met with
Inspection Department and provided a timeline for repairs to be completed
11/17/06. A mechanical and plumbing permit are required but have not been
issued.
Financial Impact: General Funds
Budget action required: None
State Equalized value: $30,700
Estimated cost to repair: $5,000
Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
City of Muskegon
933 Terrace St., P.O. Box 536, Muskegon, MI 49443
Monday, November 7, 2005
DANGEROUS BUILDING INTERIOR INSPECTION REPORT
Property Address: 1211 3RD ST Parcel # 24-205-386-0003-00
Owner: HIGHTOWER JAMES G SR
Inspection Type: DB Interior Inspection Inspector:
Date completed: 11/02/2005
DEFICIENCIES:
Uncorrected
1. Wire laundry receptacle & dryer receptacle properly and maintain clearance in
front of electric panels.
2. Three wire outlets to be grounded.
3. Ceiling fan to have rated box.
4, Replace missing/damaged light fixtures.
5. Mech & Plumbing by contractors to 2003 Codes.
6. Must have vac breaker style hose spigot.
7. Draft stop penetration thru floor.
8. Must have vent fan in master bathroom.
9, Must have posi temp valve for bathroom shower.
10. Vent fan in 2nd floor bathroom.
11. Must cap clean out in basement.
12. Certify furnace & hot water heater are in good working order.
13. Seal furnace vent where it penetrates wall.
14. Repair all damaged plaster.
15. Replace handrail at basement.
Please contact Inspection Services with any questions or to schedule an inspection at
(231) 724 6758.
Based upon my recent inspection of the above property | determined that the
structure meets the definition of a Dangerous Building and/or Substandard
Building as set forth in Section 10-61 of the Muskegon City Code.
HENRY FALTINOWSK! BUILDING INSPECTOR DATE
CITY OF MUSKEGON
DANGEROUS BUILDING INSPECTION REPORT
1211 Third
02/03/2005
Inspection noted:
Home boarded.
Repair, replace roof covering.
Ook ON
Replace, damage soffit.
Scrape and paint or reside home.
Repair front porch.
Interior inspection requested.
Please contact Inspection Services with any questions at 231-724-6715.
BASED UPON MY RECENT INSPECTION OF THE ABOVE PROPERTY, |
HAVE DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A
DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN
SECTION 10-61 OF THE MUSKEGON CITY CODE.
HENRY FALTINOWSKI, BUILDING INSPECTOR DATE
reesei ys i
DATE: March 20, 2007
TO: Honorable Mayor and Commissioners
FROM: Mark Kincaid, Deputy Director of Public Safety
RE: Concurrence with the Housing Board of Appeals Notice and Order
to Demolish. Dangerous Building Case #: EN-060434
SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
536 Oak — AREA 11 is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.
Case# & Project Address: # EN-060434— 536 Oak (Garage)
Location and ownership: This structure is located on Oak between Scott and
Williams and is owned by Lillie Brewer.
Staff Correspondence: A dangerous building inspection was conducted
10/18/06. The Notice and Order to Repair was issued on 10/20/06. The HBA
declared the structure dangerous, substandard and a public nuisance on
12/07/06.
Owner Contact: No one was present to represent case at the HBA meeting. No
permits have been issued, no inspections scheduled and no owner contact.
Financial Impact: General Funds
Budget action required: None
State Equalized value: $20,100 (Entire Property)
Estimated cost to repair: $3,000
Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
CITY OF MUSKEGON
933 Terrace St., P.O. Box 537, Muskegon, MI 49443 (231) 724-6715
DANGEROUS BUILDING INSPECTION
REPORT
Wednesday, October 18, 2006
Enforcement # EN060434 Property Address 536 OAK AVE
Parcel #24-205-041-0014-00 Owner BREWER LILLIE M
Inspector: Henry Faltinowski
Date completed: 10/18/2006
DEFICENCIES:
Uncorrected
1. Garage structural system collapsing -open sheathing, rafter connection,
failing wall plates.
2. Missing siding.
3. Replace deteriorated roof covering.
4. Replace - repair garage doors.
5. Scrape and paint exposed wood on garage.
Request interior inspection by all trades, electrical, mechanical and
plumbing. Please contact Inspection Services with any questions or to
schedule an inspection at 933 Terrace St., Muskegon, Ml 49440 (231) 724
6758.
Based upon my recent inspection of the above property | determined that the
structure meets the definition of a Dangerous Building and/or Substandard
Building as set forth in Section 10-61 of the Muskegon City Code.
Henry Faltinowski, Building Inspector Date
Sign up for City of Muskegon Emails