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CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 26, 2004
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS AND AWARDS:
A. Annual Service Awards. CIVIL SERVICE
□ INTRODUCTIONS/PRESENTATION:
□ CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. Approval of Contractor for Rehabilitation of the House at 510 Creston.
COMMUNITY & NEIGHBORHOOD SERVICES
C. Lead Based Paint Abatement at 510 Creston. COMMUNITY &
NEIGHBORHOOD SERVICES
□ PUBLIC HEARINGS:
□ COMMUNICATIONS:
□ CITY MANAGER'S REPORT:
□ UNFINISHED BUSINESS:
A. SECOND READING: Muskegon Boiler Works Study Committee Final
Report. PLANNING & ECONOMIC DEVELOPMENT
□ NEW BUSINESS:
A. FIRST READING: Adoption of Alternative Provision of City Income Tax
Act (Act 284 of 1964. INCOME TAX
B. Approval of Subordination Agreement with Crestmark Bank in Regards
to Michigan Steel. TREASURER
C. Sale of Parcel at 1537 S. Getty. PLANNING & ECONOMIC
DEVELOPMENT
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
► Remjnder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
► Be recognized by the Chair.
► Step foiward to the microphone.
► State name and address.
► limit of 3 minutes to address the Commission.
► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
□ 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 GAIL A.
KUNDINGER, CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 7246705 OR TDD: (231)
724-4172.
We,;I Mlritfg;ufs Slmn•II1w rn, M EM 0
TO: City Commission
Bryon Mazade
Lee Slaughter
FROM: Linda Potter, Clerk's Office
DATE: October 18, 2004
RE: October 26, 2004, Commission Meeting
Commissioner Davis has an appointment in Ann Arbor on Tuesday, October
26, and may not be back in time for the Commission Meeting.
City of Muskegon, 933 Tetrnce, Muskegon, MI 49440
Date: October 26, 2004
To: Honorable Mayor and City Commissioners
From: Gail A. Kundinger, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve the minutes of the Commission
Worksession that was held on Monday, October 11, 2004; and the
Regular Commission Meeting that was held on Tuesday, October 12,
2004.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 26, 2004
CITY COMMISSION CHAMBERS@ 5:30 P.M.
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, October 26,
2004.
Mayor Warmington opened the meeting with a prayer from Pastor Anderson
of the Philadelphia Baptist Church after which the Commission and public
recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Warmington, Vice Mayor Bill Larson, Commissioner
Chris Carter, Stephen Gawron, Clara Shepherd, Lawrence Spataro, City
Manager Bryon Mazade, City Attorney John Schrier, and City Clerk Gail
Kundinger.
Absent: Commissioner Kevin Davis (excused).
2004-94 HONORS AND AWARDS:
A. Annual Service Awards. CIVIL SERVICE
The service awards were presented by Ray Murdaugh.
2004-95 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Commission Worksession
that was held on Monday, October 11, 2004; and the Regular Commission
Meeting that was held on Tuesday, October 12, 2004.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Approval of Contractor for Rehabilitation of the House at 510 Creston.
COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Top Notch Design, 4740
Jension Rd., Fruitport, Ml for the rehabilitation of the home at 510 Creston for the
cost of $53,890. The only other bid received was from Lewis Johnson for $58,750
of 16076 Bonita Court, Grand Haven, Ml. After the rehabilitation is completed,
the home will be sold to a qualified first-time homebuyer continuing the City's
aggressive neighborhood revitalization efforts under the Operation "Crest to
Success".
FINANCIAL IMPACT: The funding for the project will be taken from the City's 2003
HOME funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the contract with Top Notch Design and
direct the Mayor and Clerk to sign the contract.
C, Lead Based Paint Abatement at 510 Creston. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the bid with Success Builders, 2722 E.
Broadway for the lead base paint abatement of the city-owned home at 510
Creston for $18,500. The other bids received were from West Michigan
Construction, 2600 Patterson S.E., Grand Rapids, Ml; and A-1 Professional
Construction for $19,900 and $21,925 respectfully. After the lead base paint
abatement is complete, the structure will be totally rehabilitated and then sold
to a qualified low to moderate-income homebuyer.
FINANCIAL IMPACT: Cost of the abatement will be allocated from the 2002
HOME budget for lead based paint abatement.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the bid and authorize staff to contract
the work with Success Builders of Muskegon.
Motion by Commissioner Gawron, second by Commissioner Shepherd to
approve the Consent Agenda as read.
ROLL VOTE: Ayes: Warmington, Carter, Gawron, Larson, Shepherd, Spataro
Nays: None
MOTION PASSES
2004-96 UNFINISHED BUSINESS:
A. SECOND READING: Muskegon Boiler Works Study Committee Final
Report. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The Muskegon Boiler Works Study Committee, which
was appointed l:.;,y the City Commission on June 22, 2004 to study the historic
significance of the Boiler Works property and make a recommendation
regarding the establishment of an historic district, has developed a final report.
The property is located at 1204 Eighth Street (described as City of Muskegon
Revised Plat of 1903 Block 317, Lots 9-13). To finalize its duties, the Study
Committee is forwarding on the final report with a recommendation to the City
Commission to establish the Boiler Works Historic District and to amend Chapter
11 of the Code of Ordinances concerning Historic Districts and the Historic
District Commission, to reflect the addition of the new district.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To accept the Muskegon Boiler Works Study
Committee report and recommendation and authorize the Clerk to sign the
Ordinance amending Chapter 11 of the Code of Ordinances concerning
Historic Districts and the Historic District Commission.
COMMITTEE RECOMMENDATION: The Muskegon Boiler Works Study Committee
recommends approval of the establishment of an historic district for the Boiler
Works property. The Planning Commission recommended approval to the City
Commission at their August 12, 2004 meeting.
Motion by Vice Mayor Larson, second by Commissioner Carter to approve the
establishment of an historic district for the Boiler Works property and amend
Chapter 11 of the Code of Ordinances.
ROLL VOTE: Ayes: Carter, Larson, Shepherd, Warmington
Nays: Gawron, Spataro
MOTION PASSES
2004-97 NEW BUSINESS:
A. FIRST READING: Adoption of Alternative Provision of City Income Tax
Act (Act 284 of 1964). INCOME TAX
SUMMARY OF REQUEST: The adoption of the alternative provision of the City
Income Tax Act, (Act 284 of 1964), Chapter 3, Section 141.760 which will require
employers over the one hundred dollar monthly withholding threshold to pay to
the City the full amount of tax withheld on or before the last day of the month
following the close of each calendar month. Effective January 1, 2005.
FINANCIAL IMPACT: The adoption of this provision will allow the city to collect
revenue faster. Also, it will enhance our ability to forecast economic trends from
a quarterly to a monthly basis.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval recommended.
Motion by Commissioner Spataro, second by Commissioner Carter to adopt the
alternative provision of City Income Tax Act.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter
Nays: None
MOTION PASSES (REQUIRES SECOND READING)
B. Approval of Subordination Agreement with Crestmark Bank in Regards
to Michigan Steel. TREASURER
SUMMARY OF REQUEST: Michigan Steel purchased the assets of West Michigan
Steel through section 363-bankruptcy sale, which extinguished all liens on the
personal property. In an attempt to retain some interest in the personal property
for those tax years, the City of Muskegon City Commission approved and signed
a promissory note and security agreement with Michigan Steel for repayment of
delinquent personal property taxes in November 2003.
Michigan Steel is refinancing through Crestmark Bank who is now requesting to
enter into a subordination agreement with the City of Muskegon. This
agreement only affects the previous tax years covered in the bankruptcy
proceeding. The City of Muskegon retains all superior tax lien rights for future tax
years. This would essentially be a continuation of the original subordination
agreement with Prairie Financial.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: The staff recommends approval of the subordination
agreement with Crestmark Bank.
Motion by Commissioner Gawron, second by Commissioner Spataro to approve
the Subordination Agreement with Crestmark Bank in regards to Michigan Steel.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter
Nays: None
MOTION PASSES
C. Sale of Parcel at 1537 S. Getty. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of 1537 S. Getty Street to R. Walker
Construction Company, 37 65 S. 41 Road, Cadillac, Ml 49601. This company will
construct a 7,500 sq. ft. industrial building that will be occupied by Fastenal
Company, currently located at 1590 Creston Street. Fastenal is a warehouse
wholesaler to the manufacturing industry. The property is zoned 1-1, Light
Industrial, which allows for this use as a principal use. Fastenal will purchase the
building after completion from R. Walker Construction Company. The purchase
price is $30,000, which is the full asking price. Fastenal will employ l 0-12
employees. The purchase agreement contains a condition, which will require
the company to construct the building within 18 months.
FINANCIAL IMPACT: The sale of this lot will put the property back on the tax
roles, and bring additional income tax revenue from those employed at the
company.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution, deed, and any other necessary
documents.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the sale of 1537 S. Getty Street to R. Walker Construction Company.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Gawron
Nays: None
MOTION PASSES
D. Opposing House Bill 4358 - Michigan Vehicle Code Amendment.
PUBLIC WORKS
Motion by Commissioner Spataro, second by Vice Mayor Larson to adopt the
resolution.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Gawron, Larson
Nays: None
Absent: Shepherd (stepped out of the room)
MOTION PASSES
·The City Commission Meeting adjourned at 6:05 p.m.
Respectfully submitted,
~D-~ 0
Gail A. Kundinger, MMC
City Clerk
Commission Meeting Date: August 12, 2003
Date: September 20, 2004
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Approval of Contractor for rehabilitation of the
House at 510 Creston.
SUMMARY OF REQUEST: To approve the contract with Top Notch
Design, 4740 Jension Rd, Fruitport Ml for the rehabilitation of the home
at 510 Creston for the cost of $$53,890. The only other bid received
was from Lewis Johnson for $58,750 of 16076 Bonita Court Grand
Haven , Ml. After the rehabilitation is completed, the home will be sold
to a qualified first-time homebuyer continuing the City's aggressive
neighborhood revitalization efforts under the Operation "Crest to
Success."
FINANCIAL IMPACT: The funding for the project will be taken from the
City's 2003 HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the contract with Top Notch
Design and direct the Mayor and Clerk to sign the contract.
COMMITTEE RECOMMENDATION: None needed.
Commission Meeting Date: September 20, 2004
Date: September 20, 2004
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Lead Based Paint abatement at 510 Creston
SUMMARY OF REQUEST: To approve the bid with Success Builders
2722 E. Broadway for the lead base paint abatement of the city-owned
home at 510 Creston for $18,500. The other bids received were from
West Michigan Construction 2600 Patterson S.E. Grand Rapids, Ml. and
A-1 Professional Construction for $19,900 and $21 925 respectfully.
After the lead base paint abatement is complete the structure will be
totally rehabilitated and then sold to a qualified low to moderate-income
homebuyer.
FINANCIAL IMPACT: Cost of the abatement will be allocated from the
2002 HOME budget for lead based paint abatement.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the bid and authorize staff to
contract the work with Success Builders of Muskegon.
COMMITTEE RECOMMENDATION: None
LEAD BASE PAINT ABATEMENT AGREEMENT
This Lead Abatement Construction Agreement made as of the 27 th day of July 2003 between
the City of Muskegon (the "Owner") and West Michigan Construction ("Lead Abatement
Contractor").
BACKGROUND
A. Lead Abatement Contractor (LAC) and Owner agree that LAC shall abate the lead
based paint hazards in the Bid Proposal for 510 Creston a single family residence (the "Residence")
attached as Exhibit C pursuant to the Infill Program, according to terms of this Agreement.
THEREFORE, the parties agree as follows:
1. Price, The price for Lead Abatement Construction shall be Eighteen Thousand Five
Hundred Dollars ($18,500). The Price may change in the event the LAC and Owner, agree to
change orders, modifications or extras, as defined below, in writing and signed by all the
above.
2. Costs Included. The Price shall include the cost of the building permit and all sales
taxes incurred by Lead Abatement Contractor for materials purchased and installed in the Residence.
The Price shall not include any other costs whatsoever associated with the construction of the
Residence, including, but not limited to, utility bills, heating costs, sewer or water hook-up charges,
trunkage fees, regional fees, or any other water, sewer or property tax assessments, each of which
shall be Purchaser's sole responsibility.
3. Payment of the Price. The Price shall be paid in accordance with the following
schedule ("Payment Schedule").
LAC may request draws from City of Muskegon acting as escrow agent. Draws may
be requested no more than once per month. Requests for draws and documentation required will be
in a format acceptable to the City, and shall include at a minimum lien waivers. The total amount
of a draw may never exceed the percentage of completion, less a 10% holdback. The balance owed
on the contract, including any holdback, shall be paid upon satisfactory results from a Full Clearance
Assessment.
4. Modifications/Extras. No modifications to the Plans ("Modifications") or requests
for additional construction ("Extras") shall be binding upon either party, unless the Modifications
and/or Extras are set forth on a written change order that is signed by Lead Abatement Contractor
and, City of Muskegon. The Change Order must provide a detailed description of the Modifications
and/or Extras and the cost or credit to be charged. Where a Change Order increases or decreases the
Price ("Adjusted Price"), the Adjusted Price shall be paid according to the remaining portion of the
Payment Schedule.
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Page 1
5. Possession. Purchaser shall be entitled to possession of the Residence upon payment
of the Price or Adjusted Price in full. Upon payment in full, Lead Abatement Contractor shall
deliver to Owner a Full Clearance Assessment at contractor's expense a completed sworn statement
and a full unconditional waiver of lien. Payment of the Price or Adjusted Price by Purchaser shall
constitute the acceptance of the Residence.
6. Estimated Completion Date. Lead Abatement Contractor shall commence
construction of the Residence within 30 days from the date the parties signs this agreement
("Commencement Date"). Lead Abatement Contractor shall endeavor to complete the Residence
within :!: weeks of the Commencement Date ("Completion Date"). Provided, that both the
Commencement Date and the Completion Date may be extended as a result of circumstances beyond
the control of General Contractor, including, but not limited to, delays caused by suppliers or
subcontractors, delays for utility hook-ups, Acts of God, labor disputes, governmental inspections,
regulations, or permit processes, material back orders, Purchaser's requests for Change Orders, fire,
injury or disability to General Contractor or weather.
7. General Contractor Conditions. This Agreement is subject to and includes all of
the Contractor Conditions attached to this Agreement as Exhibit A.
Dated: - - - - - - -
Dated: Qe,:±okJq, ,2(X) lf
It's: Director of CNS
Witness
Dated: - - - - - - -
\\MUSKDATAIDATA\CNS\COMMONIWPDATA\HOMEIPURCHASED HOMES\510 CRESTON\LACC_SUCCESS.DOC
Page 2
EXHIBIT A
CONTRACTORS CONDITIONS
I. General Contractor's Warranties. All building materials used in the construction of the
Residence shall be new. General Contractor guarantees its worlananship for a period of one year from the date
of final completion. Within that period, General Contractor may replace, at its option, any materials
incorporated into the Residence which are defective, provided the manufacturer's warranty is still in full force
and effect and, in fact, the manufacturer honors that warranty. To make a claim under this warranty, Purchaser
must give General Contractor written notice of any such defect in the worlananship and/or materials promptly
upon discovery and not later than expiration of the one year warranty period. This warranty does not apply
to worlananship or materials requiring repair or replacement because of normal wear and tear or natural
settling. General Contractor shall tum over and transfer to City all manufacturers' warranties that are delivered
directly to General Contractor by the manufacturer. All warranties under this agreement shall transfer upon
the date of sale to Buyer as the City's successor in interest.
2. License. General Contractor is a residential General Contractor and a residential maintenance
and alteration contractor and is required to be licensed under article 24 of Act 299 of the Public Acts of 1980,
as amended, being sections 339.2401 to 399.2412 of the Michigan Compiled Laws. An electrician is required
to be licensed under Act No. 217 of the Public Acts of 1956, as amended, being sections 338.881 to 338.892
of the Michigan Compiled Laws. A Plumber is required to be licensed under Act No. 266 of the Public Acts
of 1929, as amended being sections 338.901 to 338.917 of the Michigan Compiled Laws. General Contractor
is licensed by the State of Michigan as a licensed Michigan Contractor and maintains its license in good
standing. General Contractor's License and ID numbers are _ _ _ _ _ _ _ _ and - - - - - - - ~
respectively.
3. Laws, Ordinances and Regulations. In connection with the construction of the Residence,
General Contractor shall meet and comply with all applicable laws, ordinances, and regulations.
4. Notice of Commencement. Purchaser shall deliver a Notice of Commencement in
accordance with the Michigan Construction Lien Act within ten days of this Agreement.
5. Diligent Pursuit. General Contractor shall diligently pursue its obligations under this
Agreement. If Purchaser believes that General Contractor has failed to comply with this paragraph, it shall
provide General Contractor not less than 15 days written notice of such non-compliance, a list of City specific
complaints, and a reasonable time within which General Contractor shall cure any such reasonable complaints.
Until City fully complies with the notice provisions set forth in this paragraph,
6. Insurance. City shall procure and maintain an "all risk" insurance policy and shall name
General Contractor as an additional named insured. City shall provide General Contractor with evidence of
such insurance upon request. General Contractor shall maintain a policy of General Contractor's insurance
fully insuring the Residence from the date construction commences until the date of substantial completion.
General Contractor shall provide Purchaser with evidence of such insurance upon request. Purchaser and
General Contractor waive all rights against each other for damages caused by fire or other perils to the extent
covered by insurance provided under this paragraph.
7. Miscellaneous.
\\MUSKDATA\DATAICNSICOMMONIWPDATA\HOMEIPURCHASED HOMES\510 CRESTONILACC_SUCCESS.OOC
Page 3
7.1 Applicable Law. This Agreement is executed in, shall be governed by, and construed
and interpreted in accordance with the laws of the State of Michigan.
7 .2 Binding Effect. This Agreement shall be binding upon, inure to the benefit of, and
be enforceable by the parties and their respective legal representatives, successors, and assigns.
7.3 Full Execution. This Agreement requires the signature of both parties. Until fully
executed on a single copy or in counterparts, this Agreement is of no binding force or effect, and if
not fully executed, this Agreement is void.
7.4 Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original as against any party whose signature appears thereon, and all of
which together shall constitute one and the same instrument. This Agreement shall become binding
upon the parties when one or more counterparts, individually or taken together, shall bear the
signatures of all parties.
7.5 Non-Waiver. No waiver by any party of any provision of this Agreement shall
constitute a waiver by such party of such provision on any other occasion or a waiver by such party
of any other provision of the Agreement.
7.6 Severability. Should any one or more of the provisions of this Agreement be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions shall not in any way be impaired or affected.
7. 7 No Discrimination. Discrimination on the basis of religion, race, creed, color,
national origin, age, sex, marital status, or handicapped condition by either party in respect to the
construction of the Residence is prohibited.
7.8 Assignment or Delegation. Neither General Contractor nor Purchaser may assign all
or any part of this Agreement. Provided, that General Contractor may delegate all or any part of its
obligations to perform the services under this Agreement, to any persons or entities that General
Contractor, in its sole discretion, deems appropriate, including sub-contractors. Such delegation shall
be at the sole expense of General Contractor unless otherwise provided.
7.9 Notices. All required or permitted written notices shall be deemed effective and duly
given when: (i) personally delivered; (ii) sent by fax; (iii) one day after depositing in the custody of
a nationally recognized receipted overnight delivery service; or (iv) two days after posting in the U.S.
first class, registered or certified mail, postage prepaid, to the recipient party at the address as set forth
at the outset of this Agreement, or to such other address as the recipient party shall have furnished to
the sender in accordance with the requirements for the giving of notice.
7. JO Pronouns. For convenience, Purchaser has been referred to this Agreement
sometimes in the singular and at other times in the plural.
\\MUSKOATA\DATA\CNS\COMMON\WPDATA\HOME\PURCHASED HOMES\510 CRESTONILACC_SUCCESS.DOC
Page 4
Lead Abatement Contractor -Success
Enterprise LTD
Dated: - - - - - - -
Owner
Dated: _ _ _ _ _ _ _, ____
Dated: - - - - - - - -
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Page 5
EXHIBIT B
Legal Description
Lot 349, Muskegon -Urban Renewal Plat No. 2, according to the recorded plat thereof
As recorded in Liber 19 of Plats, pages 13-15, inclusive
\\MUSKOATA\DATA\CNSICOMMONIWPDATA\HOME\PURCHASED HOMES\510 CRESTONILACC_SUCCESS.DOC
EXHIBITC
Plans and Specifications
\\MUSKDATA\DATA\CNS\COMMON\WPDATA\HOME\PURCHASED HOMES\510 CRESTON\LACC_SUCCESS.DOC
Commission Meeting Date: October 12, 2004
Date: September 29, 2004
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development CJ/Y.,
RE: Muskegon Boiler Works Study Committee Final Report
SUMMARY OF REQUEST:
The Muskegon Boiler Works Study Committee, which was appointed by the City
Commission on June 22, 2004 to study the historic significance of the Boiler Works
property and make a recommendation regarding the establishment of an historic
district, has developed a final report. The property is located at 1204 Eighth Street
(described as City of Muskegon Revised Plat of 1903 Block 317, Lots 9-13). To finalize
its duties, the Study Committee is forwarding on the final report with a recommendation
to the City Commission to establish the Boiler Works Historic District and to amend
Chapter 11 of the Code of Ordinances concerning Historic Districts and the Historic
District Commission, to reflect the addition of the new district.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To accept the Muskegon Boiler Works Study Committee report and recommendation
and authorize the Clerk to sign the Ordinance amending Chapter 11 of the Code of
Ordinances concerning Historic Districts and the Historic District Commission.
COMMITTEE RECOMMENDATION:
The Muskegon Boiler Works Study Committee recommends approval of the
establishment of an historic district for the Boiler Works property. The Planning
Commission recommended approval to the City Commission at their August 12, 2004
meeting.
9/29/2004
Muskegon Boiler Works Historic District Study Committee
July 22, 2004
By state statute and local ordinance, historic preservation has been declared a "public good"
because historic preservation safeguards local history, stabilizes and improves property values,
fosters civic beauty, and strengtheus the local economy. To that end, the HDC Construction
Company has approached the Planning Department of the City of Muskegon asking that the
former Muskegon Boiler Works (MBW) site be established as a single site Historic District
within the City of Muskegon.
In compliance with state statute, the Muskegon Boiler Works Historic District Study Committee
has been charged to consider this request. This committee was appointed by the City of
Muskegon City Commission on June 22, 2004.
This committee of three, two current members and one past member of the City of Muskegon
Historic District Commission, is using information complied by Past Perfect, Inc. and our
collective knowledge of the area in question to complete the task.
Muskegon Boiler Works (City of Muskegon, Revised Plat 1903, Lots 9 thru 13, Blk 317, parcel
#24-205-317-0009-00) is locally significant because boilers produced there were used in local
lumber mills at a time when Muskegon was an important center for the lumber industry. After
the decline oflumbering, MBW became a nationwide supplier of boilers and other pressure
vessels used in oil refineries; paper mills; blast furnaces; paper and sugar mills; and power
plants. (National Register Criterion "A") The buildings themselves, designed by an engineer
who worked for the firm (National Register Criterion "C"), are thoroughly "modem" for their
purpose, yet they relate directly to earlier brick buildings in the area.
The boundaries recommended for the proposed district are the historic boundaries ofMBW.
Using these boundaries, 100 % of the resources on the site are "historic".
The unauimous recommendation of the Muskegon Boiler Works Historic District Study
Committee is that the Muskegon City Commission should designate the Muskegon Boiler
Works site as a single site historic district. The City of Muskegon Planning Commission has
also made the recommendation to the City Commission for approval of the request to designate
the Muskegon Boiler Works site as an historic district.
Respectfully submitted,
Jon G. Colburn
Chair
Dan Chambers
Annette Medema
9/29/04 2
Muskegon Boiler Works Historic District Study Committee Members
Annette Medema: Muskegon Historic District Commissioner, Local Realtor, experience in
commercial development in historic properties.
Dan Chambers: Muskegon Historic District Commission- Chair; Resident of Muskegon's
Heritage Village, an historic area recognized at the local, state, and national levels.
Jon Colburn: BS degree in Historic Preservation. President of the Muskegon Heritage Assoc
9/29/04 3
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. 2140
An ordinance amending Chapter 11 of the Code of Ordinances concerning Historic
Districts and the Historic District Commission.
RECITAL
The City Commission of the City of Muskegon having been approached for the purpose
of establishing a historic district for the Boiler Works building, Parcel Number 24-205-317-
0009-00. The City Commission having appointed a historic study committee, which
recommends the creation of a historic district for such property.
THE CITY OF MUSKEGON HEREBY ORDAINS:
Chapter 11 of the Code of Ordinances is amended to read as follows:
1. Section 38-35 of the Historic District Ordinance entitled "Creation and boundaries of
districts" is amended to read in it entirety as follows:
Section 38-35 Creation and boundaries of districts.
The following historic districts are hereby created:
(1) Houston Historic District - All land located within an area described by blocks
336,337,348,349,350,351; block 367, lots 3-10; block 368.
(2) Campus Historic District - All land located within an area described by blocks
396, 397, 399.
(3) McLaughlin Historic District - All land located within an area described by
blocks 226, lots 1-5, and 12; blocks 227,228,229, block 230, lots 1-5 and 14;
block 238, lots 1-5 and 12; blocks 239,240,241, block 242, lots 7-10; blocks 243,
253, block 254, easterly 66 feet of lots 7-10, block 362, lots 10-19; block 383, lots
7-12, block 394, lots 9-16.
(4) Clinton-Peck Historic District - All land located within an area described by
block 275, lots 1-9; block 276, lots 7-14; block 277, block 278, lots 1-6; blocks
288,289, block 300, lots 1-6; block 423, lots 7-12; block 424, lots 7-12; block
444, lots 7-12; block 445, lots 7-12.
(5) Jefferson Historic District - All land located within an area described by block
425, lots 1-6; block 426, lots 8-14; block 442, lots 8-14; block 443, lots 1-6; block
446, W 162 feet lot 1, N 74-1/2 feet of W 154 feet lot 2, and N 75 feet of S 149-
1/2 feet ofW 154 feet lot 2; block 447, lots 8-14; block 463, lots 7-9 and E 105.1
feet lot 10; block 464, lots 1-4.
(6) Clay-Western Historic District - All land located within an area described by
blocks 314, 315, 316, 323, 568 and 570, and lots 9-13 of Block 317.
(7) National Register Historic District - All land located within an area described by
blocks 324, 325, 326; block 327, lots 4-9; block 334, lots 4-9; block 335.
(8) Boiler Works Historic District - All land located within an area described by
block 217, lots 9-13.
(9) Other areas. The following land area is hereby included within the historic
districts: Block 313, lots 1, 2 and the east 20 feet oflot 3; block 327, lots 10, 11;
block 334, lots 1-3 and 10-12.
This ordinance adopted:
Ayes: __C_a_r_te_r--',_L_a_rs_o_n~,_Sh_e_,p._h_e_r_d~,_W_a_rm_i_n~gt_o_n_ _ _ _ _ _ _ _ __ _ _
Nays: __G_a_w_ro_n_,_S-=-p_at_a_r_o_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Adoption Date: October 26, 2004
Effective Date: November 9, 2004
First Reading: October 12, 2004
Second Reading: October 26, 2004
CITY OFMUSKEGL
By: L Q
Gail A. Kundinger, MMC
k~,W
City Clerk
CERTIFICATE
The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon
County, Michigan, does hereby certify that the foregoing is a true and complete copy of an
ordinance adopted by the Citt Commission of the City of Muskegon, at a regular meeting of the
City Commission on the 26 h day of October , 2004, at which meeting a quorum
was present and remained throughout, and that the original of said ordinance is on file in the
records of the City of Muskegon. I further certify that the meeting was conducted, and public
notice was given, pursuant to and in full compliance with Act No. 267, Public Acts of Michigan
of 1976, as amended, and that minutes were kept and will be or have been made available as
required thereby.
DATED: October 26 , 2004 llw, Q
Gail A. Kundinger, MMC
~cb_ ~
C
Clerk, City of Muskegon
Publish: Notice of Adoption to be published once within ten (10) days of final adoption.
CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on October 26 2004, the City Commission of the City of
Muskegon adopted amendments to Code of Ordinances concerning Historic Districts and the
Historic District Commission, summarized as follows:
I. Chapter 11, Section 38-35 shall be amended to establish a Boiler Works Historic
District.
Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of
the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business
hours.
This ordinance amendment is effective ten (! 0) days from the date of this publication.
CITY OF MUSKEGON
Published October 30 2004 By_ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Gail A. Kundinger, MMC, Its Clerk
------------------------------------------------- ----------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE.
C:\DOCUME-1\anguilm\LOCALS-1\Ternp\BQ9495.DOC
AGENDA ITEM NO. _ _ _ _ _ __
CITY COMMISSION MEETING_ _ _ _ _ _ __
TO: HONORABLE MAYOR AND CITY COMMISSIONERS
FROM: Kenneth D. Grant, Income Tax Administrator
DATE: October 11, 2004
RE: Adoption of alternative provision of City Income Tax Act (Act 284 of 1964)
SUMMARY OF REQUEST:
The adoption of the alternative provision of the City Income Tax Act, (Act 284 of 1964),
Chapter 3, Section 141. 760 which will require employers over the one hundred dollar
monthly withholding threshold to pay to the city the full amount of tax withheld on or
before the last day of the month following the close of each calendar month. Effective
January 1, 2005.
FINANCIAL IMPACT:
The adoption of this provision will allow the city to collect revenue faster. Also, it will
enhance our ability to forecast economic trends from a quarterly to a monthly basis.
BUDGET ACTION REQUIRED:
NONE
STAFF RECOMMENDATION:
APPROVAL RECOMMENDED
COMMITTEE RECOMMENDATION:
Date: October 19, 2004
To: Honorable Mayor and City Commissioners
From: City Treasurer
RE: Approval of Subordination Agreement with Crestmark Bank in
regards to Michigan Steel.
SUMMARY OF REQUEST:
Michigan Steel purchased the assets of West Michigan Steel through section 363-
bankruptcy sale, which extinguished all liens on the personal property. In an attempt to
retain some interest in the personal property for those tax years, the City of Muskegon
City Commission approved and signed a promissory note and security agreement with
Michigan Steel for repayment of delinquent personal property taxes in November 2003.
Michigan Steel is refinancing through Crestmark Bank who is now requesting to enter
into a subordination agreement with the City of Muskegon. This agreement only affects
the previous tax years covered in the bankruptcy proceeding. The City of Muskegon
retains all superior tax lien rights for futnre tax years. This would essentially be a
continuation of the original subordination agreement with Prairie Financial.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
The staff recommends the approval of the subordination agreement with Crestrnark Bank.
COMMITTEE RECOMMENDATION:
N/A
SUBORDINATION AGREEMENT
This Subordination Agreement dated as of October c2.fo._, 2004 (the "Effective Date"), is
made by The City of Muskegon., a Michigan municipal corporation, of 933 Terrace Street,
Muskegon, Michigan 49442 ("Subordinated Creditor"), Crestmark Bank, a Michigan banking
corporation, with offices at 850 Long Lake Road, Troy MI 48085 ("Senior Creditor") and
Michigan Steel, Inc., a Michigan corporation, of 1148 West Western A venue, Muskegon,
Michigan 49441 ("Borrower") with reference to the following facts:
Background
A. To induce the Senior Creditor to make loans or otherwise extend credit to the
Borrower, Subordinated Creditor agrees that all obligations of Borrower to Subordinated
Creditor evidenced by the instruments described on Exhibit A and any amendment, modification
and/or restatement thereof ("Junior Obligations"), shall be subject to the terms of this
Agreement.
B. Assisting Borrower in obtaining credit accommodations from Senior Creditor and
subordinating its interests pursuant to the terms of this Agreement are in Subordinated Creditor's
best interest.
C. Senior Creditor, Borrower, and Subordinated Creditor agree that, notwithstanding
any other provision of this Agreement, any obligation of Borrower to Subordinated Creditor for
the payment of personal property taxes, special assessments, or any other obligations that may be
placed on the tax roll for collection , or to any other municipal entities for whom Subordinated
Creditor collects taxes of any kind, for Tax Year 2003 and all future Tax Years ("the Tax
Obligations"), shall be secured by a paramount lien of the highest priority on all personal
property of the Borrower in favor of Subordinated Creditor pursuant to the General Property Tax
Act, MCL 211.8 et ffil.
Therefore, for good and valuable consideration, the parties agree as follows:
1. SUBORDINATION. The payment of all of the Junior Obligations is expressly
subordinated to the extent and in the manner hereinafter set forth to the payment in full of all
obligations of Borrower to Senior Creditor evidenced by the instruments described on Exhibit B
and any amendment, extensions, modifications, renewals or restatements thereof ("Senior
Obligations"); and regardless of any priority otherwise available to the Subordinated Creditor by
- 1-
law or by agreement and nntil all of the Senior Obligations have been paid in full and the Senior
Creditor has no further commitment to make loans or grant other financial accommodations to
the Borrower under any of the Senior Obligations, the Senior Creditor shall hold a first priority
security interest in the collateral described on Exhibit C ("Collateral"), and any security interest
claimed therein (including any proceeds thereof) by the Subordinated Creditor, except any lien
arising by law from the Tax Obligations, shall be and remain fully subordinate for all purposes to
the security interest of the Senior Creditor herein.
2. PAYMENTS. So long as the Subordinated Creditor has no knowledge that a
Borrower Default has occurred (as defined below) and is continuing or will occur as a result of
or immediately following such payment, the Subordinated Creditor may accept: (i) scheduled
monthly payments of principal and interest required to be paid under the Subordinated Note (as
described on Exhibit A), each of which payments shall be in an amount not exceeding One
Thousand, Nine Hundred, Five and 77/100 Dollars ($1,905.77), as described in the Subordinated
Note. For purposes of this Agreement, "Borrower Default" means a Default or Event of Default
as defined in any agreement or instrument evidencing, governing, or issued in connection with
the Senior Obligations.
3. ACTION ON SUBORDINATED DEBT. The Subordinated Creditor will not
commence any action or proceeding against the Borrower to recover all or any part of the Junior
Obligations, or join with any creditor (unless the Senior Creditor shall so join) in bringing any
proceeding against the Borrower nnder any bankruptcy, reorganization, readjustment of debt,
arrangement of debt receivership, liquidation or insolvency law or statnte of the federal or any
state government, or take possession of, sell, or dispose of any Collateral, or exercise or enforce
any right or remedy available to the Subordinated Creditor with respect to any such Collateral,
except upon any lien arising from the Tax Obligations, unless and until the Senior Creditor
consents (which consent shall not be unreasonably withheld) or the Senior Obligations have been
paid in full and the Senior Creditor has no further commitment to make loans or grant other
financial accommodations to the Borrower under the Senior Obligations.
4. ACTION CONCERNING COLLATERAL. The Senior Creditor may take possession
of, sell, dispose of, or otherwise deal with all or any part of the Collateral, and may enforce any
right or remedy available to it with respect to the Collateral. Neither the Senior Creditor nor the
Subordinated Creditor shall have any duty to preserve, protect, care for, insure, take possession
of, collect, dispose of, or otherwise realize upon any of the Collateral, and in no event shall either
party be deemed the agent of the other with respect to the Collateral. All proceeds received by
the Senior Creditor with respect to any Collateral may be applied, first, to pay any Tax
Obligations, second, to pay or reimburse the Senior Creditor for all costs and expenses (including
reasonable attorneys' fees) incurred by the Senior Creditor in connection with the collection of
such proceeds, and, third, to the Senior Obligations secured by the Senior Creditor's security
interest in that Collateral. Upon payment in full of the Senior Obligations, the Senior Creditor
shall remit all proceeds received by the Senior Creditor to the Subordinated Creditor unless and
until the Junior Obligations have been paid in full.
5. CONTINUING EFFECT; REFINANCING. This Agreement shall constitute a
continuing agreement of subordination. The Senior Creditor may, at any time and from time to
Page 2
time, without the consent of or notice to the Subordinated Creditor and without incurring
responsibility to the Subordinated Creditor or impairing or releasing any of the Senior Creditor's
rights or any of the Subordinated Creditor's obligations hereunder: (i) change the interest rate or
change the amount of payment or extend the time for payment of the Senior Obligations; (ii)
release anyone liable in any manner for the payment or collection of the Senior Obligations or
any part thereof; (iii) exercise or refrain from exercising any right against the Borrower or any
other person (including the Subordinated Creditor); and (iv) apply any sums received by the
Senior Creditor, by whomsoever paid and however realized, to the Senior Obligations in such
manner as the Senior Creditor shall deem appropriate. In addition, the Subordinated Creditor
shall execute any documents and take such steps reasonably requested by Borrower (at no cost to
Subordinated Creditor) to enable the Borrower to refinance, amend, extend, modify, renew or
restate the Senior Obligations, whether with Senior Creditor or any other lender, so long as: (i)
such refinancing, amendment, extension, modification, renewal or restatement does not change
the amount of payment or extend the time for payment of the Junior Obligations.
6. NOTICE. All notices and other communications hereunder shall be in writing and
shall be (i) persoually delivered, (ii) transmitted by registered mail, postage prepaid, or
(iii) transmitted by facsimile, in each case addressed to the party to whom notice is being given
at its address as set forth below, or at such other address as may hereafter be designated in
writing by that party. All such notices or other communications shall be deemed to have been
given on (i) the date received if delivered personally, (ii) the date of posting if delivered by mail,
or (iii) the date of transmission if delivered by facsimile.
7. No WAIVER. No waiver shall be deemed to be made by the Senior Creditor of
any of its rights hereunder unless the same shall be in writing signed on behalf of the Senior
Creditor, and each such waiver, if any, shall be a waiver only with respect to the specific matter
or matters to which the waiver relates and shall in no way impair the rights of the Senior Creditor
or the obligations of the Subordinated Creditor to the Senior Creditor in any other respect at any
time.
8. BINDING EFFECT; ACCEPTANCE. This Agreement shall be binding upon and
inure to the benefit of the parties and their heirs, legal representatives, successors and assigns.
9. MISCELLANEOUS. The paragraph headings herein are included for convenience
of reference only and shall not constitute a part of this Agreement for any other purpose. This
Agreement may be executed in any number of counterparts, each of which shall be an original,
but all of which together shall constitute one instrument.
10. GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE; W AIYER OF JURY
TRIAL. This Agreement shall be governed by and construed in accordance with the substantive
laws (other than conflict laws) of the State of Michigan. Each party consents to the personal
jurisdiction of the state and federal courts located in the State of Michigan in connection with
any controversy related to this Agreement, waives any argument that venue in any such forum is
not convenient, and agrees that any litigation initiated by any of them in connection with this
Agreement shall have a venue in either the state or federal courts located in Muskegon County,
Michigan.
Page 3
The parties have executed this Agreement as of the Effective Date set forth above.
SUBORDINATED CREDITOR: SENIOR CREDITOR:
By:
Name: Stev
Its: Mayor Its: First Vice President
Dated: \)',!,,.,...._ \'. ), ,
2004
And
By: _$;,;!~~-1...'!.~ro.usl~=
=-iotaryPu~ic
Not11_,' hiG;ic, Wayr\', r: ./;-_'", - \1l W~ County, Michigan
My Go(n,·rit,s1on t:1.piir.,; ,.'j ; ,:-. :•;;J7
ActingiilieCounty of /k./LJo;::;;c
My commission expires: 1~12--07
Prepared by and when recorded return to:
James R. Scheuerle
Parmenter O'Toole
P.O. Box 786
Muskegon, MI 49443-0786
Page 6
EXHIBIT A
Junior Obligations
I. "Subordinated Note" means the Borrower's Promissory Note, dated as of
December 14, 2003, payable to the order of The City of Muskegon. in the original principal
amount of Seventy-Eight Thousand, Sixty-Three and 93/100 Dollars ($78,063.93), together with
all renewals, extensions and modifications thereof and any note or notes issued in substitution
therefor.
EXHIBITB
Senior Obligations
"Senior Obligations" means all obligations arising under the Senior Note, together with all
interest and all fees, costs and other charges related to the collection thereof.
"Senior Note" means the Borrower's Promissory Note Line of Credit, dated October 13, 2004,
payable to Crestmark Bank in the original principal amount of Two Million, Five Hundred
Thousand Dollars ($2,500,000.00), together with all renewals, extensions and modifications
thereof and any note or notes issued in substitution therefor.
EXHIBITC
Collateral
"Collateral" means all assets of the borrower, now existing or hereafter aiising, including all
accounts receivable, inventory, equipment, and all proceeds thereof.
Commission Meeting Date: October 18 2004
Date: October 26, 2004
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: Sale of Parcel at 1537 S. Getty Street
SUMMARY OF REQUEST:
To approve the sale of 1537 S. Getty Street (see attached map) to R. Walker Construction
Company, 3765 S. 41 Road, Cadillac, Ml 49601. This company will construct a 7,500 sq. ft.
industrial building that will be occupied by Fastenal Company, currently located at 1590
Creston Street. Fastenal is a warehouse wholesaler to the manufacturing industry. The
property is zoned 1-1, Light Industrial, which allows for this use as a principal use. Fastenal
will purchase the building after completion from R. Walker Construction Company. The
purchase price is $30,000, which is the full asking price. Fastenal will employ 10-12
employees. The purchase agreement contains a condition, which will require the company
to construct the building within 18 months.
FINANCIAL IMPACT:
The sale of this lot will put the property back on the tax roles, and bring additional income tax
revenue from those employed at the company.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the attached resolution and to authorize both the Mayor and the Clerk to sign
said resolution, deed, and any other necessary documents.
COMMITTEE RECOMMENDATION:
10/18/04
\\Muskdata\Data\Planning\COMMON\Econ. Dev\CC Items\1537 s getty agenda cover.doc
Resolution No. 2004 - 97 ( c)
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE SALE OF 1537 S. GETTY STREET TO
R WALKER CONSTRUCTION COMPANY
WHEREAS, the City of Muskegon has ownership of the property at 1537 S. Getty Street,
Muskegon, Michigan, designated as parcel numbers 24-205-098-0001-20; and
WHEREAS, R. Walker Construction Company, 3765 41 Road, Cadillac, MI, has made a
legitimate offer to purchase the subject property; and
WHEREAS, both the Seller (City of Muskegon) and Buyer (R. Walker Construction) agree to
the terms of the purchase as outlined in the attached purchase agreement; and
WHEREAS, the sale would generate additional tax revenue for the City and relieve the City of
further maintenance costs; and
WHEREAS, the redevelopment of the subject property is consistent with the City's objective of
development of industrial properties.
NOW THEREFORE BE IT RESOLVED, that the Muskegon City Commission approves the sale
of the property known at 1537 S. Getty Street to R. Walker Construction Company for the sum
of $30,000.
CITY OF MUSKEGON REVISED PLAT OF 1903 PART OF BLK 98 COM AT THE NE
COR LOT 15 BLK 2 MUSKEGON VALLEY FURNITURE CO SUB TH S 57D 55M 00S
E ALG SLY LINE LOUIS ST 15 FT TH S 00D 25M 00S E ALG W ROW GETTY ST
393.12 FT FOR POB TH N SOD 04M 56S W 202.84 FT TH N 50D 09M 32S W 228.02 FT
TH S 39D 32M 00S W 200.88 FT TH S SOD 19M 42S E 662.54 FT TH N ALG W ROW
GETTY ST TO POB SBJT TO EAMT RECOR'D 3609/630.
Adopted this 2 6 t hday of October, 2004
Ayes: Larson, Shepherd, Spataro, Warmington, Carter, and Gawron
Nays: None
Absent None
20O4- 97(c)
CERTIFICATION
b
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted
by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular
meeting held on October 26, 2004. By: ~
Gail Kundinger, MMC
City Clerk
N
Vacant Industrial City-Owned Lot
1537 S. Getty Street W~E
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1
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~8 ff1fF 1·1·j171 l13•163S
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TOLl-FAEE: IS6GJ 305-2 13'
•Ax ,sn, 373.3~0 NATURAL RESOURCES ANO
sengv.1nwoetlcC\ni@sena1c.m1chlg;:an g:,v GERALD VAN WOERKOM E.NVl~ONMENTAL AFFAIRS
November 10, 2004
j
Dear City Manager and Mayor:
Thank you for contacting my office about HB 4358, the bill to allow longer trucks on local roadways.
Your comment was very helpful in my consideration of this legislation.
Senator Judson Gilbert, Chairman of the Transportalion Committee, met with representatives of local
government and the trucking industry on Monday, November 8111 • The outcome of that meeting brought a
compromise that resulted in support for the bill by the Michigan Municipal League and the County Road
Association of Michigan. Based on lhat support, today I voted in favor of HB 4358.
Below are a list of the major changes reflected in the agreement:
It allows only 59' trailers with a limited exception allowing 65' ·trailers for aggregate
haulers who arc traveling to a·nd from their job site and place of business.
Fine for axles under 4,000 pounds will be $200.00 per axle, up to 3 axles.· Fine~ for an
axle over 4,000 pounds will continue using the current per penny/per pound fine
schedule. In both cases, the commercial vehicle combinations must be within the legal
gross vehicle combination weight. ·
Since no agreement could be reached regarding lift-axles and a definition of
"temporarily," an agreement was reached to continue allowing enforcement age~cies to
use their professional judgment on ton temporarily or reasonableness unless local
government chooses to define "temporary" for the raising and lowering of lift-axles.
Additionally, I am also sending you a copy of a letter sent to all Senate members and distributed on the
Senate floor this morning. This letter is from the MML and indicates their support for the substitute
version of HB 4358 that was voted on today.
Again, thank you for your input on this issue, it was very helpful.
Gerald Van Woerkom
State Senator
341h District
REPRESENTING MASON. MUSl
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