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CITY OF MUSKEGON CITY COMMISSION MEETING SEPTEMBER 28, 2004 CITY COMMISSION CHAMBERS@ 5:30 P.M. AGENDA □ CALL TO ORDER: □ PRAYER: □ PLEDGE OF ALLEGIANCE: □ ROLL CALL: □ HONORS AND AWARDS: □ INTRODUCTIONS/PRESENTATION: □ CONSENT AGENDA: A. Approval of Minutes. CITY CLERK B. Brownfield Site Assessment Consulting Contract - Couture Environmental Strategies LLC. PLANNING & ECONOMIC DEVELOPMENT C. Purchase a New Wheel Loader. PUBLIC WORKS D. 2004-2005 Transportation Planning Program Funding. CITY MANAGER □ PUBLIC HEARINGS: A. Request for Name Change on Industrial Development Certificate No. 95-724 - Great Lakes Die Cast. PLANNING & ECONOMIC DEVELOPMENT B. Request for Name Change on Industrial Development Certificate No. 98-551 - Great Lakes Die Cast. PLANNING & ECONOMIC DEVELOPMENT □ COMMUNICATIONS: □ CITY MANAGER'S REPORT: □ UNFINISHED BUSINESS: □ NEW BUSINESS: A. Groundwater Ordinance Amendment. PLANNING & ECONOMIC DEVELOPMENT B. Audit Contract Extension. FINANCE C. Proposed Waler Rate Increase. FINANCE o ANY OTHER BUSINESS: o PUBLIC PARTICIPATION ► Reminder: Individuals who would like to address the City Commission shall do the following: ► Fill out a request to speak form attached to the agenda or located in the back of the room. ► Submit the form to the City Clerk. ► Be recognized by the Chair. ► Step forward to the microphone. ► State name and address. ► Limit of 3 minutes to address the Commission. ► (Speaker representing a group may be allowed IO minutes if previously registered with City Clerk.) o 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) 724-6705 OR TDD: (231) 724-4172. Date: September 28, 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 Special Commission Meeting that was held on Wednesday, September 8, 2004; the Commission Worksession that was held on Monday, September 13, 2004; and the Regular Commission Meeting that was held on Tuesday, September 14, 2004. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. CITY OF MUSKEGON CITY COMMISSION MEETING SEPTEMBER 28, 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, September 28, 2004. Mayor Warmington opened the meeting with a prayer from Commissioner Clara Shepherd 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, Kevin Davis, Stephen Gawron, Clara Shepherd, and Lawrence Spataro, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk Gail Kundinger. 2004-85 CONSENT AGENDA: A. Approval of Minutes. CITY CLERK SUMMARY OF REQUEST: To approve the minutes of the Special Commission Meeting that was held on Wednesday, September 8, 2004; the Commission Worksession that was held on Monday, September 13, 2004; and the Regular Commission Meeting that was held on Tuesday, September 14, 2004. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. B. Brownfield Site Assessment Consulting Contract - Couture Environmental Strategies LLC. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: The City of Muskegon was awarded a Brownfield Grant/Loan, in the amount of $1,000,000 ($500,000/grant, $500,000/loan), for the purposes of providing funding for environmental investigations, Baseline Environmental Assessments and Due Care Plans to facilitate redevelopment and reuse of properties in the City. Anne Couture, of Couture Environmental Strategies LLC, has been the City's consultant for grant administration and grant writing for these activities. It is recommended that Ms. Couture be retained in this capacity to continue with the grant administration during the duration of the grant activities. Therefore, the Commission is asked to approve the proposal from Ms. Couture and authorize the Mayor to sign. FINANCIAL IMPACT: The budget for grant administration activities is 10% of the total amount of the grant and loan for a total of $100,000. The cost will be covered by the grant funds. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the proposal between the City of Muskegon and Couture Environmental Strategies LLC, and authorize the Mayor to sign the proposal. C. Purchase a New Wheel Loader. PUBLIC WORKS SUMMARY OF REQUEST: Approval to purchase one Case 721 D loader. FINANCIAL IMPACT: Total cost per unit $82,000. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approve purchase of one 721 D loader from West Michigan Power. D. 2004-2005 Transportation Planning Program Funding. CITY MANAGER SUMMARY OF REQUEST: To approve the City's share of the local matching funds for the Muskegon County Metropolitan Planning Program for fiscal year 10/1 /04 to 9/30/05. The City receives grant funds through this program for certain major streets. FINANCIAL IMPACT: $16,040 from the Major Street Fund. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve this request. Motion by Commissioner Gawron, second by Commissioner Davis to approve the Consent Agenda. ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, Gawron Nays: None MOTION PASSES 2004-86 PUBLIC HEARINGS: A. Request for Name Change on Industrial Development Certificate No. 95-724 - Great Lakes Die Cast. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Pursuant to Public Act 198 of 197 4, as amended, Great Lakes Die Cast Corporation, 701 W. Laketon Avenue, Muskegon, Michigan, has requested name change on Industrial Development Certificate No. 95-724 for property located at 701 W. Laketon Avenue, Muskegon, Michigan. The certificate was originally granted to Dilesco Corporation in 1995, but since the company has new owners, the name change is requested. The transfer will be for both real and personal property. The company continues to perform the same work as under the previous owners. FINANCIAL IMPACT: Certain additional income and property taxes will be collected. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the resolution changing the name on the Industrial Development Certificate to Great Lakes Die Cast Corporation. The Public Hearing opened at 5:34 p.m. to hear and consider any comments from the public. No comments were heard. Motion by Vice Mayor Larson, second by Commissioner Carter to close the Public Hearing at 5:36 p.m. and approve the name change on Industrial Development Certificate No. 95-724 to Great Lakes Die Cast Corporation. ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, Larson Nays: None MOT/ONPASSES B. Request for Name Change on Industrial Development Certificate No. 98-551 - Great Lakes Die Cast. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Great Lakes Die Cast Corporation, 701 W. Laketon Avenue, Muskegon, Michigan, has requested name change on Industrial Development Certificate No. 98-551 for property located at 701 W. Laketon Avenue, Muskegon, Michigan. The certificate was originally granted to Dilesco Corporation in 1998, but since the company has new owners, the name change is requested. The transfer will be for both real and personal property. The company continues to perform the same work as under the previous owners. FINANCIAL IMPACT: Certain additional income and property taxes will be collected. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the resolution changing the name on the Industrial Development Certificate to Great Lakes Die Cast Corporation. The Public Hearing opened at 5:36 p.m. to hear and consider any comments from the public. No comments were heard. Motion by Commissioner Gawron, second by Commissioner Spataro to close the Public Hearing at 5:39 p.m. and approve the name change on Industrial Development Certificate No. 98-551 to Great Lakes Die Cast Corporation. ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, Shepherd Nays: None MOT/ON PASSES 2004-87 NEW BUSINESS: A. Groundwater Ordinance Amendment. PLANNING & ECONOMIC DEVELOPMENT SUMMARY OF REQUEST: To approve an amendment to the City Groundwater Ordinance to include properties that have been identified as "affected" premises as defined in the Groundwater Ordinance. An "affected" premises shall mean a parcel of property any part of which is located within an appendix map made part of this ordinance, as originally enacted or amended, which map shows the parcel to have contaminated groundwater under any part of the parcel. Brunswick Corporation (owner of the parcel) and R & B Trailer Leasing (adjacent to the parcel) have been notified by mail of the amendment herein. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the amendment. Motion by Commissioner Spataro, second by Commissioner Gawron to approve the amendment to the City Groundwater Ordinance. ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, Spataro Nays: None MOTION PASSES B. Audit Contract Extension. FINANCE SUMMARY OF REQUEST: The contract for the City's annual audit is expired. Because of the possibility that voters may approve changes to the City's fiscal year this November, staff is recommending that the contract with the current independent audit firm (Hoffman, Steensma & Plamondon) be extended through 12/31 /04 and through the potential stub-year period (6/30/05 or 9/30/05). This will provide much needed continuity through a difficult transition. Waiting to bid out audit services will have the added advantage (if the fiscal year is changed) of attracting more competitive bids, since the current 12/31 year-end is unattractive to many CPA firms because of tax preparation season. Typically audit contracts are awarded for a five-year period so it is sensible to wait until we know what the future fiscal year-end will be. FINANCIAL IMPACT: proposed cost for 12/31 /04 audit - $34,000 which is the same as for the 12/31 /03 audit. Proposed cost for the stub-period audit - $26,000. BUDGET ACTION REQUIRED: none at this time. The 2005 budget incorporates funding for the 12/31 /04 audit. If voters approve the fiscal year proposals, the entire 2005 budget will need to be reforecast and restructured at a later date. STAFF RECOMMENDATION: Approval of the audit contract extension to cover the 12/31 /04 audit and the audit for the stub year, if the November ballot proposal is approved by voters. Motion by Commissioner Spataro, second by Commissioner Carter to extend the contract. ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, Warmington Nays: None MOTION PASSES C. Proposed Water Rate Increase. FINANCE SUMMARY OF REQUEST: The City is in the midst of a $16.5 million renovation of the Water Filtration Plant. To fund these improvements, the City has borrowed $13.9 million from the Drinking Water Revolving Fund (DWRF) and has committed other resources to the project. It is necessary to raise water user fees significantly in order to cover debt service requirements associated with the filtration project and to offset rapidly rising operational costs. Staff is recommending that the water user charge be raised from the current $ l.09 /heft to $1.40/hcft effective January l, 2005. FINANCIAL IMPACT: The following table shows how the rate increase will impact typical residential households: Sample Users Quarterly Water Bill Quarterly Water Bill Before Increase Afterl/1/05 Increase Using 7,500 gallons per $32.70 $42.00 month ( 1-2 person household) Using 15,000 gallons per $65.40 $84.00 month (3-4 person household) As shown on the survey, Muskegon's residential water rates will continue to be below the average for Michigan communities after implementation of the increase. BUDGET ACTION REQUIRED: None at this time. The 2005 water fund budget incorporates the projected revenues from the rate increase. STAFF RECOMMENDATION: Approval of the resolution implementing the proposed water rate increase. Motion by Commissioner Carter, second by Commissioner Spataro to approve the water rate increase. ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington, Carter Nays: None MOTION PASSES 2004-88 ANY OTHER BUSINESS: A. Commissioner Shepherd requested assistance with costs associated with attendance at the NLC Conference held in Indianapolis, Indiana from November 30 through December 4, 2004. Motion by Commissioner Carter, second by Mayor Warmington to give the $415 registration fee from Mayor Warmington and Commissioner Carter's travel allocation. ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, Davis Nays: MOTION PASSES B. Muskegon Big Red Band Parents requested that the Special Event late fee be waived for the annual Tag Sale in October. Motion by Vice Mayor Larson, second by Commissioner Shepherd to waive the fee one time. ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, Gawron Nays: None MOTION PASSES The City Commission Meeting adjourned at 6:24 p.m. Respectfully sub Gail A. Kundinger, MMC City Clerk Commission Meeting Date: September 28, 2004 Date: September 16, 2004 To: Honorable Mayor & City Commission From: Planning & Economic Development Department CJ3<- RE: Brownfield Site Assessment Consulting Contract- Anne Couture SUMMARY OF REQUEST: The City of Muskegon was awarded a Brownfield Grant/Loan, in the amount of $1,000,000 ($500,000/grant, $500,000/loan), for the purposes of providing funding for environmental investigations, Baseline Environmental Assessments and Due Care Plans to facilitate redevelopment and reuse of properties in the City. Anne Couture, of Couture Environmental Strategies LLC, has been the City's consultant for grant administration and grant writing for these activities. It is recommended that Ms. Couture be retained in this capacity to continue with the grant administration during the duration of the grant activities. Therefore, the Commission is asked to approve the attached proposal from Ms. Couture and authorize the Mayor to sign. FINANCIAL IMPACT: The budget for grant administration activities is 10°/c, of the total amount of the grant and loan for a total of $100,000. The cost will be covered by the grant funds. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the attached proposal between the City of Muskegon and Couture Environmental Strategies LLC, and authorize the Mayor to sign the proposal. COMMITTEE RECOMMENDATION: None. \.-·1 ,·- :-•-, ,_ ... ,--, 2004-85(b) ,I Couture Environmental Strategies LLC September 13, 2004 Ms. Cathy Brubaker-Clarke Director of Community and Economic Development City of Muskegon PO Box536 Muskegon, Ml 49443-0536 Re: Contract for Brownfield GranULoan Administration Muskegon Environmental Assessment GranULoan Dear Cathy: Couture Environmental Strategies LLC is pleased to submit this contract to the City of Muskegon ("City'') to provide granUloan administration services for the Muskegon Environmental Assessment Grant and CM! Brownfield Redevelopment Loan ("Project"). Michigan Department of Environmental Quality (MDEQ) awarded the City a Site Assessment Fund (SAF) Grant in the amount of $500,000 and a CMI Brownfield Redevelopment Loan of $500,000 in September 2004. The purpose of the SAF Grant is to provide funding for environmental investigations, Baseline Environmental Assessments, and Due Care Plans to facilitate redevelopment and reuse of properties in the City, with a focus on properties located along the Muskegon Lake Shoreline, Seaway Industrial Park, Port City Industrial Park, Medendorp Center Industrial Park, and the Lakeside Area ("Project"). The CMI Brownfield Redevelopment Loan may be used to pay for implementation of BEA and Due Care response activities at properties in the Project area proposed for redevelopment. The costs of GranULoan administration activities are included as granUloan-eligible funding. Scope of Work The Scope of Work for the proposed services of Couture Environmental Strategies LLC includes the following: 1. Develop Project operational procedures, and facilitate overall Project coordination. 2. Provide assistance to the City in complying with the terms and conditions of the Brownfield Grant and Loan Agreements. 3. Work with the City to identify and evaluate potential redevelopment projects that would be enhanced and facilitated through utilization of Brownfield Grants and/or Loans. 4. Obtain work plan and budget approval from MDEQ prior to Project consultants/contractors undertaking any grant-eligible tasks. 5. Review and comment on all draft work plans and budgets, reports, change orders, bid documents, and other documents prepared by the Project consultants/contractors. Track consultanUcontractors expenditures to assure consistency with MDEQ-approved budgets and work plans. 6. Coordinate activities and communication among the City, MDEQ, Project consultants/contractors, property owners, prospective purchasers, developers, and other parties who may be involved in the Project. 1451 Shoal Aven11e, Richland, Michigan 49083 (269) 629-9842 FAX (269) 629-7011 E-Mail: co11t11re(iijjasnetworks.net Ms. Cathy-Brubaker-Clarke -2- 9/13/04 7. Prepare Project deliverables for submittal to MDEQ per terms of the granl/loan agreement. This will include preparation of quarterly progress reports, reimbursement requests, and a final report. 8. Review Project consultanl/contractor invoices; prepare reimbursement requests on behalf of the City for submittal to MDEQ. Sign reimbursement request forms on behalf of the City. Provide review and comment on any proposed contracts with contractors/consultants for grant-funded activities related to the Project. 9. Provide assistance to the City in development and execution of any proposed amendments to the MDEQ Grant Agreement as necessary to implement Project goals. 10. Keep the City apprised of grant project progress, and assure grant administration activities are conducted in a manner that represents the best interests of the City. BUDGET The services of Couture Environmental Strategies LLC will be billed to the City on an hourly basis, currently $150/hour. Time will be billed based on actual hours worked and direct costs incurred. All grant administration activities will be conducted in compliance with an MDEQ-approved work plan and budget, pursuant to the terms of the Brownfield Redevelopment Grant and Loan Agreements, and therefore will be reimbursable from the Grant or Loan. The Grant and Loan Agreements between the Michigan Department of Environmental Quality and the City of Muskegon allocate $50,000 each for Grant and Loan Administration, or 10% of the total amount of the grant and loan for a total of $100,000 Agreement Attached to the letter are Provisions for Representation by Couture Environmental Strategies LLC ("Provisions"). This letter and the attached Provisions constitute a contractual agreement for services. If these terms and conditions are acceptable, I would appreciate your acknowledging acceptance of them by signing and returning the enclosed copy of this letter. Please don't hesitate to call if you have any questions. Sincerely, ..,.-, -·~ /J Cz / / ~ -~ v Anne P. Couture Couture Environmental Strategies LLC Date Attachment 1451 Shoal Avenue, Richland, Michigan 49083 (269) 629-9842 FAX (269) 629-701 1 E-Mail: co11111re@jas11etworkf.ne1 Ms. Cathy-Brubaker-Clarke -3- 9/13/04 PROVISIONS FOR REPRESENTATION BY COUTURE ENVIRONMENTAL STRATEGIES LLC Except as modified by an engagement letter, the following provisions will apply to the relationship between Couture Environmental Strategies LLC and each of its clients: 1. Fees for services rendered will be based on the reasonable value of those services. Fees will be based primarily on standard hourly billing rates and the numbers of hours worked. Couture Environmental Strategies LLC will adjust billing rates from time to time. 2. Time for which a client will be charged will include, among other things, telephone and office conferences with the client, consultants, regulators, public officials, and others; investigations; research; report preparation; document review and comment; drafting of letters, memoranda and other documents; and travel time. 3. In addition to fees, costs and expenses incurred in performing services will be billed, including photocopying, postage, travel (mileage, meals, lodging), faxes, and other similar costs and expenses. All costs billed will be consistent with approved State of Michigan rates. 4. Although fees or costs are estimated, these estimates are subject to unforeseen circumstances and are by their nature inexact. CES LLC will not be bound by any estimates except to the extent expressly set forth in the engagement letter. 5. Fees and expenses will be billed monthly. 6. A client shall have the right to terminate our services and representation upon written notice. Such termination, however, will not relieve the client of the obligation to pay for all services rendered and costs or expenses paid or incurred on behalf of the client prior to termination. 1451 Shoal Avenue, Richland, Michigan 49083 (269) 629-9842 FAX (269) 629-701 I E-Mail: cout11re@jasnetworks.net Date: 09/21/04 To: Honorable Mayor and City Commission From: DPW RE: Purchase a new wheel Loader SUMMARY OF REQUEST: Approval to purchase one Case 721 D loader. FINANCIAL IMPACT: Total cost per unit $82,000 BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approve purchase of one 721D loader from West Michigan Power. Memorandmn To: Honorable Mayor and Commissioners From:DPW Date: 9/22/2004 Re: Wheel Loader Replacement The Equipment Division has budgeted for the replacement of one wheel loader in 2004. The loader we are replacing is 10 years old and has 4100 hours on it. We solicited bids from the top four manufacturers for a 3.5 cubic yard loader. They are Michigan Caterpillar, Contractors Machinery, IDE Equipment, and West Michigan Power. (See attachment) We had the opportunity to evaluate each of the loaders for a few days at the DPW and we find that any of the loaders would meet our needs. We currently have four Case loaders and have been very satisfied with their performance and reliability. (They are also low bid) In accordance with established purchasing policy, I am requesting that we purchase one Case 721D from West Michigan Power. 1 LOADER ! Model Cost Trade Net I 1vlicmgan l;aterpiller ! I 7700 Caterpillar Ct. Cat 938 GIi $125,770.00 $28,000.00 \ $97,770.00 Grand Rapids Mi 49548 Contractors Machinery 8840 Byron Commerce Dr. Volvo L90E $122,635.00 $34,000.00 $.88,635.00 Byron Center Mi. 49315 I West Michigan Power 3651 M-20 ! Case721D $129,000.00 $47,000.00 $82,000.00 New Era Mi 49446 JDE Equipment 5770 Clyde Park Deere 624J $121,833.00 : $32,000.00 $89,833.00 Grand Rapids Mi. 49509 ! i I AGENDA ITEM NO. _ _ _ __ CITY COMMISSION MEETING _ _,,9,_,./2..,.8/"'014 _ TO: Honorable Mayor and City Commissioners FROM: Bryon L. Mazade, City Manager September 22, 2004 2004-2005 Transportation Planning Program Funding SUMMARY OF REQUEST: To approve the City's share of the local matching funds for the Muskegon County Metropolitan Planning Program for fiscal year 10/1/04 to 9/30/05. The City receives grant funds through this program for certain major streets. FINANCIAL IMPACT: $16,040 from the Major Street Fund. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve this request. COMMITTEE RECOMMENDATION: None. JMS- 0: (2005-TRANSPLAN) O:COMMON\DEPTMENT\ADMIN\AGNDAFRM INVOICE WEST MICHIGAN SHORELINE REGIONAL DEVELOPMENT COMMISSION 316 MORRIS AVE., #34 □ • P.O. BOX 387 • MUSKEGON, Ml 4944 □ - □ 387 PHONE (231) 722·787B • FAX (231) 722-9362 WEBSITE · WWW.WMSRDC.ORC3 SOLD TO SHIPPED TO !City of Muskegon 7 ATTN: Byron Mazade, Manager PO Box 536 L Muskegon, MI 49443 __J F.O.B. TERMS INVOICE NO. ---- I 0041s6_ City ofMuskegon'sshare of the Fiscal Year 2005Transportation Planning Program. $16,040.00 ('1 1 "'\ r·· (·", c: ·,,,,! ! \. f .L. l . .:.:. r. · ~ ,l SEP ' 2004 l\li_,~ }('.f.-G(>i -GH'/ ,'-1!,,.,_:__ C;. _____feL~-;_{ :,~fl E- CR: 6349.0349.1 $13,910.00 6349.0349.3 $2,130.00 Reorder Item #NVR73 Please Call Toll Free: 1-800-527-9530 OR1GINAL ©EGI, 1982, Printed 10 U.S.A West Michigan Metropolitan Transportation Planning Program (WestPlan) ~ Dues Structure (<': FY 2005 C\ tf' () j_ ·:,. ~~ . ~~ ~ Muskeaon Countv . ,.,. . , c;.. ,J, / Dues Populatioh;~t:.._ · ~ t- City of Muskeaon $16,040.00 40,105 \. . (.\I_ i\. 0 <;b, ~ <''0 Muskeaon Heiohts $4,820.00 12,049 \J'...... "'' Roosevelt Park $1,560.00 3,890 -~ Norton Shores $9,010.00 22,527 ' North Muskeaon $1,620.00 4,031 Village of Fruitport $500.00 1,124 *MCRC $22,180.00 55,446 Sub Total $55,730.00 Ottawa Countv Dues Population Citv of Grand Haven $4,470.00 11,168 City of Ferrysburg $1,220.00 3,040 Villaae of Sarina Lake $1,010.00 2,514 *OCRC FAUB $13,310.00 33,274 **Ottawa Countv $20,000.00 49,996 Sub Total $40,010.00 . Transit Aaencies Dues Harbor Transit $1098.00 Muskegon Area Transit $5,000.00 Svstem Sub Total $6,098.00 TOTAL $101,838.00 1 Dues calculated based on $.40 per capita using 2000 Census 2 Village of Fruitport assessed flat fee of $500.00 3 MATS and Harbor Transit are at an 82/18 split, respectively, for a total of $6,098.00. This breakdown is a result of the breakdown of FTA eligibility 4 The total population of any complete township that has any part of it jurisdictional lines included within the census defined urban boundary is used to compute the dues for Road Commissions. *Townships included: Muskegon County: Sullivan, Egelston, Dalton, Fruitport (minus village population), Laketon and Muskegon. Ottawa County: Grand Haven, Robinson, Crockery and Spring Lake. **Currently not a member. Local Governments in the Muskegon/Grand Haven area are expected to receive $10 to $15 million annually in federal transportation funds through the West Michigan Shoreline Regional Development Commission's MPO Program. Commission Meeting Date: September 28, 2004 Date: September 14, 2004 To: Honorable Mayor and City Commissioners From: Planning & Economic Development ci!x..., RE: Public Hearing - Request for Name Change on Industrial Development Certificate No. 95-724 - Great Lakes Die Cast SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Great Lakes Die Cast Corporation, 701 W. Laketon Avenue, Muskegon, Michigan, has requested name change on Industrial Development Certificate No. 95-724 for property located at 701 W. Laketon Avenue, Muskegon, Michigan. The certificate was originally granted to Dilesco Corporation in 1995, but since the company has new owners, the name change is requested. The transfer will be for both real and personal property. The company continues to perform the same work as under the previous owners. FINANCIAL IMPACT: Certain additional income and property taxes will be collected. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the attached resolution changing the name on the Industrial Development Certificate to Great Lakes Die Cast Corporation. COMMITTEE RECOMMENDATION: None 9/14/2004 cc /tss- : Application Number Cate Received by STC APPLICANT INFORMATION All boxes must be completed. 1a. Company Name (Applicant must be the occupanVoperator of the facllily) 1b. Standard Industrial Classificatron (SIC) Code - Sec. 2(10) (Four Digit Code) Great Lakes Die Cast Coruoration 3361 1c. Location of Facility (Street, City, State, ZIP Code) ,u. Name 01 M1ty11ownsnip,vulage 1e. County (lndicate:khich) 701 w. Laketon Ave. , Muskegon, MI 49441 Mus egon Muskegon § 2. Type of Approval Requested New (Sec. 2(4)) Speculative Building (Sec. 3(8)) ~ Transfer (1 copy lo only) 3a. School Cistrict where facility is located 3b. School Code Muskegon 61010 Rehabilitation (Sec. 3(1)) 4. Amount of years requested for exemption (1-12 Years) Research and Development (Sec. 2(9)) 12 5. Thorough% describe the project for which exemplion is sought Real Pr~erty (Type of lmftrovements to land, Buildlni, Size of Addition); Personal Property (Explain New, Used. Trans rred from 0uI-0f-State, etc.) and Proposed Use of Facility. ( lease allach add tlonal page(s) if more room Is needed). Building and equipment expansion resulting from the addition of a new wing to the ¢':il:isting plant building and the purchase and installation of machinery and equipment. 6a. Cost of land and building improvements (excluding cost of land) i 487,900.00 • Attach list of Improvements and associated costs. Real Property Costs • Also attach a copy or building permit ff project has already begun. 6b. Cost of machinery, equipment. furniture and fixtures $1,672,100.00 • Attach itemized listing with month, day and year of beginning of installation plus total costs Personal Property Costs 6c. Total Project Costs i2,160,ooo.oo Total of Real & Personal Costs 7. Indicate the time schedule for start and finish of construction and equipment insta!lalion. Projects mus! be comple!ed within a two year period of lhe effective date of !he certificate unless otherwise approved by lhe STC. B~gin Date {M/DIY} End Date (M/D/Yl Real Property Improvements 10/1/94 10/1/95 {Approx.) Downed ~Leased Personal Property Improvements 10[1[94 10lll95 ~Owned OLeased 8. Are State Education Taxes reduced or abaled by the Michigan Economic Development Corporation (MEDC)? If yes, applicant must attach a signed MEOC Letter of Commiltment to receive !his exemplion. Yes O No Ii] x 9. Number of existing jobs at this facility lhal will be retained as a result oflhfs project. r10.. Number of ~ew jobs at !his facility expected to be created wilhin two years of 140 PtoJetl comp1el1on. 40 11. Hehabi italion apphcahons only: (.;omplete a,.o and c 01 th!s secIIon. You must attach lhe assessor's statement 01 valualion for the entire plant rehabilitation dislrict. The SEV dala below must be as of Cecember 31 of the year prior to the rehabilitation. a. SEV of Real Property {excluding land) b. SEV of Personal Property (excluding inventory) . c. Total SEV 'l:a. Check the type of District lhe facility is localed In: ~ Industrial Development District 0 Plant Rehabilitation District 12b. Date district was established by local government unit 112~ Is this appl;caUon to, a speculaU,e bumd;ng (Sec. 3(8))? (Not: known bv oreoarer) 0 Yes I!:} No Form 1012, Page 2 APPLICANT CERTIFICATION The undersigned, authorized officer of the compijny making this application certifies that. to the best of his/her knowledge, no information contained herein or in lhe atlachmenls hereto is false in any way and that all are truly descriptive of the industrial property for which this application is being submitted. II is further certified that the undersigned is familiar wilh the provisions of P.A. 198 of 1974, as amended, being Seclions 207 .551 to 207 .572, inclusive, of lhe Michigan Compiled Laws: and to the best of his/her knowledge and belief, (s)he has complied or will be able to comply with all of the requirements !hereof which are prerequisite to the approval of the application by the local unit of government and the issuance of an Industrial Facilities Exemption Certificate by the State Tax Commission. 13a. Preparer Name 13b. Phone Number 13c. Fax Number Con J. Nolan 231 728-8813 231 726-2205 ldiecast.com 14a. Name of Contact Person 14b. Phone Number 14c. Fax Number 14d. E-mail Address Same as above Same as above Same as above Same as above orized Agents) 15c, Date 15d. Mailing Ad,dress (St_?iet, Clly, State, ZIP) 1Sf. E-mail AddreS& 701 W. Lake'ton Ave. Muske on MI 728-8813 cnolan@ldiecast.com LOCAL GOVERNMENT ACTION & CERTIFICATION This section must be completed by the clerk of the local governing unit before submitting application to the Slate Tax Commission. Check Items on file at the Local Unit and those included with the submittal. 16. Action taken by local government unit 16b. The Stale Tax Commission Requires the following documents be filed for an administralively complele application: D Abatement Approved for _______ Years {1-12) Indicate N/A 11 Nol Applicable D Yes D No ~ After Completion 1. Original App/lcallon plus attachments, and one complete copy '----- 2, Resolution establishing district 0 Denied -(Include Resolution Denying) ~ ~ 3. Resoluticin approVing/denylng application. 16a. Documents Required lo be on file with the local Unit 4. Letter of Agreement (Signed by local unit and applicant} '----- Indicate N/A if Not Applicable ~ 5. Affidavil of Fees (Signed by local unit and applicanl) ~ 2.' -•. •• ,_., '""' •M.., •~"''"" o °'"'" Notice to taxing aulhorilies of opportunity for a hearing. ~ 6. Building Permil for real improvements if project has already begun 7. EQuipment List with dates of beginning of inslallalion >- 3. List of taxing authorities notified for dislricl and application action. 8. Form 3222 (~ applicable) '----- 4. Lease Agreement showing applicants lax liability. ~ 9, Speculative building resolution and affidavits (if applicable) 17. Name of local Government Body HI. Dale of Resolulion Approving/Denying !his Application Attached herelo is an original and one copy of the application and all documents lisled in 16b. I also certify lhat all documents li5led in 16a are on file at lhe local unit for inspection at any time. 19b. Name of Clerk 19c. E-mall Address Git1i/ A- /(un,lin er ,;ii, l(w,di,v.er €2, /1"""1-m«n• t>r 19e. Phone Number 19f. Fax Number ,231) 7:)'/-C,70.S- (.2 31) 7.2'/- 'II lJ" Stale Tax Commission Rule Number 57: Complete applications approved by the local unil and received by the State Tax Commission by October 31 each year will be acted upon by December 31. Applications received after Oclober 31 may be acted upon in the following year. Local Unit: Mail one original and one copy of the completed application and all required allachments lo: State Tax Commission Michigan Department of Treasury P.O. Box 30471 * Information contained in this application Lansing, Ml 48909,7971 and supporting documentation may be subject to review by the public if a Freedom of Information request is filed. STC USE ONLY LUCI Code Begin Date End Date End Oale2 Resolution No. 2004-86(a) MUSKEGON CITY COMMISSION RESOLUTION APPROVING REQUEST FOR A NAME CHANGE FOR INDUSTRIAL DEVELOPMENT CERTIFICATE NO. 95-724 Great Lakes Die Cast Corporation WHEREAS, pursuant to Act No. 198 of the Public Acts of 1974, as amended, the City of Muskegon has the authority to authorize a name change to an "Industrial Development Certificate" within the City of Muskegon; and WHEREAS, Dilesco Corporation, the previous applicant for the certificate, has sold it's operations to Great Lakes Die Cast Corporation; and WHEREAS, Great Lake Die Cast Corporation, 701 W. Laketon Avenue, Muskegon, Michigan, has requested the City of Muskegon to change the name on Industrial Development Certificate No. 95-724 for real and personal property located at 701 W. Laketon Avenue, Muskegon, hereinafter described; and WHEREAS, Great Lakes Die Cast Corporation presently owns a production facility within the Industrial Development District; and WHEREAS, written notice has been given by mail to all owners of real property located within the district, and to the public by newspaper advertisement in the Muskegon Chronicle and public posting of the hearing on the proposed change on the certificate; and WHEREAS, before acting on said request the Muskegon City Commission held a public hearing on September 28, 2004, at the Muskegon City Hall in Muskegon, Michigan at 5:30 p.m. at which hearing the applicant, the assessor and representatives of the affected taxing units were afforded an opportunity to be heard on said application. NOW THEREFORE BE IT RESOLVED THAT, the Muskegon City Commission of the City of Muskegon, Michigan that: 1. The Muskegon City Commission finds and determines that the Certificate considered together with the aggregate amount of certificates previously granted and currently in force under Act No. 198 of the Public Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 as amended shall not have the effect of substantially impeding the operation of the City of Muskegon or impairing the financial soundness of a taxing unit which levies ad valorem property taxes in the City of Muskegon. 2. The application of Great Lakes Die Cast, for the name change of an Industrial Facilities Tax Exemption Certificate is with respect to real and personal property for the following described parcel situated within the City of Muskegon to wit: See Attachment A 3. The name on the Industrial Facilities Exemption Certificate is changed and shall remain in force and effect for the remaining period of the original certificate, which took effect October 24, 1995, and was issued for twelve (12) years. Adopted this 28th day of September, 2004. Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and Larson Nays: None Absent: None Attest: ~ ~~&:...--1....:~ ~ ~ ~ ~ ! . . . . . . . . .- Gail Kundinger Clerk, MMC 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 September 28, 200~. J W-- ~ k ~ Gail Kundinger (] Clerk, MMC ATTACHMENT A Parcel 1: Lots 2-11 inclusive and North½ of vacated Erie Street adjacent ot Lots 8-11, Block 1 Glencoe Addition. Parcel 2: Lots I, 2 and 3 of Block 6 and the South½ of vacated Erie Street adjacent to Lot I, Glencoe Addition. Parcel 3: Lots 6-11 inclusive and South½ of vacated Erie Street adjacent thereto, Block 6 and North ½ of vacated alley adjacent to said lots, Glencoe Addition. Parcel 4: Lots 4 & 5 ofBlock 6, and North½ of vacated alley adjacent to Lot 5, Glencoe Addition. Parcel 5: Lots 17 & 18 and North ½ of Duncan Avenue which has been vacated adjacent thereto, Block 6 and also the South½ of vacant alley adjacent thereto, Glencoe Addition. Parcel 6: Lots 12-16 inclusive and North½ of Duncan Avenue which has been vacated adjacent thereto, Block 6, and the South½ of vacated alley adjacent to Lots 14-16 inclusive and vacated alley adjacent to Lots 12-14 inclusive, Glencoe Addition. CITY OF MUSKEGON CONTRACT FOR TAX ABATEMENT Act 198 Public Acts of 1974 AGREEMENT between CITY OF MUSKEGON, a municipal corporation of933 Terrace Street, Muskegon, Michigan 49441, ("City") and Great Lakes Die Cast ("Company"). Recitals: A. The Company has applied to City for the establishment of an industrial development district or industrial rehabilitation district pursuant to the provisions of Act 198 of the Public Acts of 1974, as amended, which act requires a contract between the City and the Company to be agreed and submitted with the Company's subsequent anticipated application for an industrial facilities exemption certificate. B. That in addition to the statutory requirement, the City has determined that it is in the best interests of the taxpayers, property owners and residents of the City that this Agreement be approved and executed prior to the establishment of the requested district, and the City deems this Contract, together with the conditions set forth in the said Act to constitute a necessary element in the City's determination whether or not to create the district. · · C. The Company intends to install the project set forth in its application ("project") which it believes qualifies for the process of establishing the district and the application for industrial facilities exemption certificate. D. The City, provided this Agreement is executed, will determine whether to create the district based upon the potential for the production of permanent jobs, the continuation, stabilization or increase of economic activity, planning and zoning considerations and the City's general plan and intentions regarding economic development. In addition to the City policy considerations and predictions that the Company's proposed district and certificate benefit the community in those ways, the City has further determined that the contractual commitments made by the Company to thereby assist the community shall be binding on the Company and necessary to continue the tax exemption made possible by the certificate. E. This contract shall become effective upon the issuance of an Industrial Facilities Tax Exemption Certificate. NOW THEREFORE THE PARTIES AGREE: Page I 1. COMPANY AGREEMENT. The Company irrevocably commits to the investment, job retention and job creation promises made in its application, a copy of which is attached hereto and incorporated herein. In particular the Company agrees: 1.1 That fifty (50) percent of the promised new jobs shall be in place with full- time employees on or before January, 1996, and seventy-five (75) percent of the said jobs shall be in place with full time employees on or before June, 1996 Finally, 100% of the jobs shall be filled and in existence with full-time employees by a date no later than two (2) years from the date of the granting of the certificate by the State Tax Commission, subject to the provisions of section 3.4 of this agreement. 1.2 That the amount of jobs listed on the application, whether new or retained, will be maintained through the life of the abatement, subject to the provisions of section 3.4 of this agreement, 1.3 The Company shall meet the affirmative action goal included in the application or in any documents supplied by the City and utilized by the Company, including any additional representations made to the City Commission on or before the date two (2) years after the granting of the certificate by the State Tax Commission. It shall maintain the said levels of employment diversity during the period of the certificate, subject to the provisions of section 3.4 of this agreement. 1.4 The Company, by the end of two (2) years from the date of the grant of the certificate by the State Tax Commission shall have completed the investment of$2,160,000 in the equipment and improvements as shown in the application, subject to the provisions of section 3.4 of this agreement. 1.5 That the improvements and equipment to receive the tax abatement treatment shall be completed on or before the date two (2) years from the date of granting of the certificate by the State Tax Commission. 1.6 The Company shall pay its specific taxes required by the act in a timely manner, and shall not delay payments so as to incur any penalties or interest. 1. 7 The Company shall fully cooperate with the City representatives in supplying all requested and required documentation regarding jobs, investment, the meeting of all goals and the timely installation and utilization of equipment and improvements. The City shall be entitled to inspect at reasonable hours the Company's premises where the said improvements and equipment have been installed and where the said jobs are performed. 1.8 The Company shall maintain, during the entire period for which the tax abatement is granted, the level of jobs, affirmative action goals, production Page 2 and utilization of the improvements and equipment at the site where the district has been created and for which the tax exemption has been granted. 1.9 The Company shall not cause or fail to cure the release of any hazardous substance, or the violation of any environmental law on its premises in the City. It shall report any releases to the appropriate governmental authority in a timely and complete manner, and provide copies of said report documentation to the City. It shall comply with all orders and actions of any governmental agency having authority. 1.10 The Company shall maintain the equipment and improvements so as to minimize physical or functional obsolescence. 1.11 The Company shall continue to operate its business location in the City, containing the same number of and type of jobs, for the term of the certificate. 2. AGREEMENT BY THE CITY. Provided this contract has been executed and further provided all applications to create the district and achieve the industrial facility exemption certificate have been properly filed, the City shall, in a timely manner, determine in a public meeting to whether to create the district and whether to receive, process, and approve thereafter the Company's application for an industrial facilities exemption certificate. The City may consider this contract in a meeting separate from and prior to the meeting in which the City considers the creation of the district and/or approval of the application for certificate. Further, the City shall require the submission of this contract signed by the Company together with its applications, before creating the district. 3. EVENTS OF DEFAULT. The following actions or failures to comply shall be considered events of default by the Company: 3.1 Failure to meet any of the commitments set forth above. 3.2 The closing of the Company's facilities in the City. Closing shall mean for purpose of this Agreement, the removal, without transfer to another site within the City of substantially all of the production facilities, and the elimination of substantially all the jobs created or retained thereby, which are set forth in the Company's application. 3.3 Failure to afford to the City the documentation and reporting required. 3.4 The failure to create or retain jobs, meet affirmative action goals or expend the funds on equipment and improvements as represented in the application within the times required hereby, unless the company can show that there has Page3 been a loss of revenue and employment due to circumstances beyond the control of the company. In order to make that showing the company shall have the burden of supplying, to the City's satisfaction, complete and convincing documentation supporting and justifying reductions in investment, failures to attain affirmative action goals or job losses, such as, without limitation, written evidence of lost contracts, accounting information showing reduced revenues due to the loss of business, (not due to diversion of production to affiliate companies or divisions of the company), production records showing reduced quantities over significant periods of time, and such other information required by the City to support the Company's claim that the failure to invest, failure to achieve affirmative action goals, or loss of jobs should not form the basis for a finding of default. 3.5 The bankruptcy or insolvency of the Company. 3.6 The failure to pay any and all taxes and assessments levied on the Company's property or any other taxes, local, state or federal, including but not limited to City income taxes and the withholding of said City income taxes from employees as required by the City Income Tax Ordinance. 3.7 The performance or omission of any act which would lead to revocation under MCLA 207.565, being §15 of the Act. 3.8 The violation of any provisions, promises, commitments, considerations or covenants of this Agreement. 4. REMEDIES ON DEFAULT. In the event of any of the above defaults the City shall have the following remedies which it may invoke without notice, except as may be reasonably required by the Company's rights to due process: 4.1 In the event of closing as determined after investigation of the facts and a public hearing, the Company shall be immediately liable for penalties to be paid forthwith to the city as determined as follows: 4.1.1 The Company shall pay to the City for prorata distribution to the taxing units experiencing the abatement, an amount equal to the difference between the industrial facilities tax which it has paid, and the total property taxes to the relevant taxing units which it would have paid, given its installations of improvements and equipment, during the years for which the certificate was in effect. 4.1.2 hnmediate Revocation. The Company hereby consents to revocation to the IFT certificate before the State Tax Commission, without hearing, and the City shall submit a copy of this Agreement to the State Tax Commission in connection with its revocation procedure, giving Page 4 notice that the default has occurred and immediate revocation should occur. 4.2 In the event the improvements and equipment have not been installed before the two (2) year period, in addition to the revocation procedures before the State Tax Commission, the abatement should immediately be reduced by the City proportionately, and any installations which have not been finished at the end of said two (2) year period shall not be eligible for the abatement thereafter and shall be placed on the regular tax roll. 4.3 Failure to Expend the Funds Represented. In the event, (whether or not the installations have been completed), the Company has not expended the funds it has represented on its application that it would invest for the installation of equipment, the abatement shall be reduced prorata, and any remaining value of equipment shall be placed on the regular tax roll, unless the company can show, through receipts, etc. that the cost of the equipment was actually less than the amount estimated by the company (i.e., the same equipment was purchased as listed in the IFT application, but the bids came in less then expected). 4.4 Job Creation and Retention. In the event the promised number of jobs have not been created or retained at the end of the two (2) years after the grant of the certificate by the State Tax Commission, the abatement shall be proportionately reduced, unless the company can show that the. loss of jobs, or inability to hire as many people as expected, is due to circumstances beyond the control of the company (such as an economic downturn). 4.5 Affirmative Action Goals. In the event, after one (I) year from the grant of the certificate by the State Tax Commission, the affirmative action goals of the City for additional jobs have not been met on a prorata basis, the abatement shall be revoked. 4.6 For other violations of this Agreement or for actions or omissions by the Company amounting to grounds for revocation by statue, the City shall recommend to the State Tax Commission immediate revocation of the certificate. 4. 7 Special Assessment. For any amount due to be paid to the City, under this Section 4, the Company consents that the City shall have a personal action against the Company for the said amount, and in addition, cumulatively, and not by election, the City shall have a special assessment lien on all the property of the Company personal and real, located in the City, for the collection of the amounts due as and in the manner of property taxes and in such case the collection of the said special assessment shall be accomplished by addition by the City to the Company's property tax statement regularly rendered. Page 5 5. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Michigan applicable to contracts made and to be performed within the State of Michigan. 6. Counterparts. This Agreement may be executed in one or more counterparts. Notwithstanding such execution all such counterparts shall constitute one and the same Agreement. 7. Benefit. This Agreement shall be binding upon and inure to the benefit of the respective parties, their successors and personal representatives. 8. Effective Date. This Agreement shall be effective on the date the State of Michigan Tax Commission grants the company at Industrial Facilities Exemption Certificate. Its President and._ _ _ _ _ _ _ _ _ _ __ Its- - - - - - - - - - Page 6 Commission Meeting Date: September 28, 2004 Date: September 14, 2004 To: Honorable Mayor and City Commissioners From: Planning & Economic Development (.,(bv RE: Public Hearing - Request for Name Change on Industrial Development Certificate No. 98-551 - Great Lakes Die Cast SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, Great Lakes Die Cast Corporation, 701 W. Laketon Avenue, Muskegon, Michigan, has requested name change on Industrial Development Certificate No. 98-551 for property located at 701 W. Laketon Avenue, Muskegon, Michigan. The certificate was originally granted to Dilesco Corporation IN 1998, but since the company has new owners, the name change is requested. The transfer will be for both real and personal property. The company continues to perform the same work as under the previous owners. FINANCIAL IMPACT: Certain additional income and property taxes will be collected. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the attached resolution changing the name on the Industrial Development Certificate to Great Lakes Die Cast Corporation. COMMITTEE RECOMMENDATION: None 9/14/2004 Michigan Department of Treasury 1012 (Rev. 4/04) '\pplication for Industrial Facilities Tax Exemption Certificate :iued under authority of P.A. 198 of 1974, es amended. Filing is mandatory. INSTRUCTIONS: File the original and two copies of this form and the required attachments (three complete sets) with the clerk of the local government unit. The State Tax Commission (STC) requires two complete sets (one original and one copy). One copy is retained by the clerk. If you have any questions regarding the completion of this form or would like to request an informational packet, call (517) 373-3272. .·.',\ To be compieted by_ Clerk of Local Government Unit Date received by Local Unit .Sep-fet»lur • STC Use Only;;: ; • App1icallon Number Date Received by STC APPLICANT INFORMATION All boxes must be completed. 1a. Company Name (Appllcent mus! be Iha occupantloperator of the faciHty) 1b. Standard Industrial Classlficalion (SIC) Code- Sec. 2(10) {Four Digit Code) Great Lakes Die Cast Corporation 3361 1c. Location of Facility (Street, City, State, ZIP Code} 1d. Name 0I l;lty11ownsn1p,vmage 1e. County (Indicate which) 701 w. Laketon Ave., Muskeiton, MI 49441 Muskeiton Muskee:on 2. Type of Approval Requested 3a. School Dlslrict where facility is located 3b. School Code D New (Sec. 2(4)) ~ Transfer (1 copy to only) Muskegon 61010 D Speculative Building (Soc. 3(8)) Rehabilitation (Soc. 3(1)) 4. Amount of years requested for exemption (1-12 Years} D Research and Development (Sec. 2(9)) 12 5. Thoroughre describe the project for which exemption Is sought Real Pr'#t:.rty {Type of lmerovements lo Land, Buildin~, Size of Addition); Personal Property (Explain New, Used, Trans erred from Out-of-Slate, etc.) and Proposed Use of Fac!Uty. ( lease altach additional page(s) ii more room 1s needed). Building and equipment expansion resulting from the purchase of land and building from the County, demolition of old building, construction of new building, and the purchase and installation of new machinery and equipment. 6a. Cost of land and building Improvements (excluding cost of land) . $1,888,194.00 • Attach list of improvements and associated costs. Real Property Costs • Also attach a copy of building permit if project has already begun. 6b. Cost of machinery, equipment, furniture and fixtures .. $5,205,100.00 • Attach itemized listlng with month, day and year of beginning of installation plus total costs Personal Property Costs 6c. Total Project Costs $7,093,294.00 Total of Real & Personal Costs 7. Indicate the time schedule for start and finish of construcllon and equipment installation. Projects must be completed within a two year period of the effective date of the certificate unless otherwise approved by the STC. Begin Date (M[D/Y) End Date {MID/Y} Real Property Improvements 9/9/98 3[15[99 Downed ~Leased Personal Property Improvements 12/1/98 5[1[99 !!]owned 0Leased 8. Are State Education Taxes reduced or abated by the Michigan Economic Development Corporation (MEDC)? If yes, applicant mus! attach a signed MEDC Letter of Commillment to receive lhls exemption. O Yes [!] x No 9. Number of existing jobs at lhis racllity thal will be retained as a result of this project. 10. Number of new jobs at 1his facility expected 10 be crea\ed within two years or 195 project completion. JO 11. Kehab1Jitat1on applications omy: ~omplete a, band c 01 this section. rou must attac the assessors statement 01 valuahon 1or the entire plant rehabll tatlon district. The SEV dat"a below mus! be as of December 31 of the year prior to the rehabilitation. a. SEV of Real Property (excluding land) b. SEV of Personal Property (excluding inventory) . c. Total SEV '2a. Check the type of District lhe facility is localed in: @ Industrial Development District D Plant Rehabilitalion District 12b. Dale district was eslablished by local government unit 12c. Is lhts application for a speculative builiding (Sec. 3(8))? (Not kuown by preparer) D Yes Ii] No Form 1012, Page 2 APPLICANT CERTIFICATION The undersigned, authorized officer of the company making this application certifies that. to the best or his/her knowledge, no information contained herein or in the attachments herelo is false in any way and that all are truly descriptive of the industrial property for which this application is being submitted. It is further certified that the undersigned is familiar with the provisions of P.A. 198 of 1974, as amended, being Sections 207.551 to 207.572, inclusive, or the Michigan Compiled Laws; and to the best of his/her knowledge and belief, (s}he has complied or will be able to comply with all of the requirements thereof which are prerequisite to the approval of the application by the local unil of government and the issuance of an Industrial Facililies Exemption Certificate by the Slate Tax Commission. 13a. Preparer Name 13b. Phone Number 13c. Fax Number 13d. E~mai!Address Con J. Nolan (231) 728-8813 (231) 726-2205 cnolan@gldiecast.com 14a. Name of Contact Person 14b. Phone Number 14c. Fax Number 14d. E-mail Address Same as above Same as above Same as above Same as above 15a. Name of Company Officer (No Aulhorlzed Agents) Con J. Nolan. President 15b. Signature o~ari'y .;~-- ?rrJto ' ,I P-9'ized Agents) ~ 15c. Dale 9/1/04 1Sd. Malling Addfass (St:t Clly, State, ZIP) 15e. Phone Number 15f. E-mail Address 701 W. Laket n Ave •• Muskegon. MI 49441 (231) 728-8813 cnolan@gldiecast.com LOCAL GOVERNMENT ACTION & CERTIFICATION This section must be completed by the clerk of the local governing unit before submitting application to the State Tax Commission. Check items on file at the Local Unll and those included with the submittal. 16. Action taken by local government unH 16b. The State Tax Commission Requires the following documents be filed for an administrallvely complele applicatlon: D Abatement Approved for ____ Years (1-12) Indicate NIA If Not Applicable After Completion D Yes D No - 1. Original Application plus attachments, and one complete copy f- 2. Resolulion establishing district O Denied (Include Resolution Denying) f- 3. Resolution approvingfdenying application. .,. -~· ..•,,~.,.·- ~ 4. Letter of Agreement (Signed by local unit and applicant) 16a. Documents Required to be on file with the Local Unit ~ Indicate. NIA If Not Applicable 5. Affidavit or Fees (Signed by local unit and appliC:anl) '. '"" ,,.. "''. ~ ~ 2. Notice to taxing aulhorilies of opportunity for a hearing. - 6. Building Permit for real improvements if project has already begun 7. Equipmenl list wilh dates or beginning of installation 3. List of taxing authorities notified for district and application action. - 8. Form 3222 (if applicable) 4. Lease Agreement showing applicants tax liability. - 9. Speculative building resolution and affidavits (if applicable) - 17. Name of Local Government Body 18. Date of Resolution Approving/Denying this Application Attached hereto is an original and one copy of the application and all documents listed in 16b. I also certify that all documents listed in 16a are on file at the local unit for inspection at any time. 19b. Name of Clerk 19c. E-mail Address a/I A. Jrv11d/ ,,,. oi/./(WJ(/1'/Jftere] o.f,man, t:1r 19d. Clerk's Malling Address (Street, City, Stal , IP) 19a. Phone Number 19f. Fax Number '133 lerro,c,e /1/u.s.K,, °" /JI/ 1/JffP {:J.31) 7,;i 'I- /,?OS- (::i 31/ 7.;i y-y17? Stale Tax Commission Rule Number 57: Complete applications approved by the local unit and received by the State Tax Commission by October 31 each year will be acted upon by December 31. Applications received after October 31 may be acted upon in the following year. Local Unit: Mail one original and one copy of the completed application and all required attachments to: State Tax Commission Michigan Department of Treasury P.O. Box 30471 * Information contained in this application Lansing, Ml 4B909-7971 and supporting documentation may be subject to review by the public if a Freedom of Information request is filed. STC USE ONLY LUC! Code Begin Date End Date End Date2 Resolution No. 2004-86 ( b) MUSKEGON CITY COMMISSION RESOLUTION APPROVING REQUEST FOR A NAME CHANGE FOR INDUSTRIAL DEVELOPMENT CERTIFICATE NO. 98-551 Great Lakes Die Cast Corporation WHEREAS, pursuant to Act No. 198 of the Public Acts of 1974, as amended, the City of Muskegon has the authority to authorize a name change to an "Industrial Development Certificate" within the City of Muskegon; and WHEREAS, Dilesco Corporation, the previous applicant for the certificate, has sold it's operations to Great Lakes Die Cast Corporation; and WHEREAS, Great Lake Die Cast Corporation, 701 W. Laketon Avenue, Muskegon, Michigan, has requested the City of Muskegon to change the name on Industrial Development Certificate No. 98-551 for real and personal property located at 701 W. Laketon Avenue, Muskegon, hereinafter described; and WHEREAS, Great Lakes Die Cast Corporation presently owns a production facility within the Industrial Development District; and WHEREAS, written notice has been given by mail to all owners of real property located within the district, and to the public by newspaper advertisement in the Muskegon Chronicle and public posting of the hearing on the proposed change on the certificate; and WHEREAS, before acting on said request the Muskegon City Commission held a public hearing on September 28, 2004, at the Muskegon City Hall in Muskegon, Michigan at 5:30 p.m. at which hearing the applicant, the assessor and representatives of the affected taxing units were afforded an opportunity to be heard on said application. NOW THEREFORE BE IT RESOLVED THAT, the Muskegon City Commission of the City of Muskegon, Michigan that: 1. The Muskegon City Commission finds and determines that the Certificate considered together with the aggregate amount of certificates previously granted and currently in force under Act No. 198 of the Public Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 as amended shall not have the effect of substantially impeding the operation of the City of Muskegon or impairing the financial soundness of a taxing unit which levies ad valorem property taxes in the City of Muskegon. 2. The application of Great Lakes Die Cast, for the name change of an Industrial Facilities Tax Exemption Certificate is with respect to real and personal property for the following described parcel situated within the City of Muskegon to wit: See Attachment A 3. The name on the Industrial Facilities Exemption Certificate is changed and shall remain in force and effect for the remaining period of the original certificate, which took effect October 24, 1995, and was issued for twelve (12) years. Adopted this 28th day of September, 2004. Ayes: Spataro, Warmington, Cart er, Davis, Gawron, Larson, and Shephe rd Nays: None Absent: None 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 September 28, 2004. ATTACHMENT A Glencoe addition, Blk 1 lot 2 to 11 incl & vac Erie; Blk 2 Lots 1-4 incl, 6-11 incl and all vac alleys abutting same; Blk 3 lots 1-4 in!, 12 to 18 incl, 20 to 26 incl and all vac alleys and Sts abutting; Blk 4, Lots 1-7 incl, Lots 20 to 26 incl and all abutting vac Sts and alleys; Blk 5, Lots 1-6 incl, vac Sts abutting; Blk 6, Lots 1-5 incl, 6-11 inc vac Erie Also N ½ vac alley, Lots 17 and 19 N vac Duncan and S ½ alley also Lots 12 to 16 incl and N ½ vac alley; and Part of the Northwest¼ of Section 31, Town 10 North, Range 16 West, Muskegon City, Muskegon County, Michigan, being described as: Commencing at the Northwest comer of said Section, thence South 00 degrees 00 minutes 00 seconds West on the West line of the Section, 664.00 feet; thence North 89 degrees 56 minutes 20 seconds East 33.00 feet to the East line of Henry Street being the point of Beginning of the parcel of land therein described; thence continuing North 89 degrees 56 minutes 20 seconds East 446.38 feet to the Southwesterly line of the Chesapeake and Ohio Railroad; thence South 32 degrees 59 seconds 51 minutes East on the same, 412.11 feet; thence South 00 degrees 15 minutes 07 seconds West 221.02 feet; thence South 87 degrees 48 minutes 13 seconds West 670.33 feet to said East line; thence North 00 degrees 00 minutes 00 seconds East on same, 591.86 feet to the Point of Beginning. Subject to easements restrictions and right-of-ways ofrecord. CITY OF MUSKEGON CONTRACT FOR TAX ABATEMENT Act 198 Public Acts of 1974 AGREEMENT between CITY OF MUSKEGON, a municipal corporation of933 Terrace Street, Muskegon, Michigan 49441, ("City") and Great Lakes Die Cast ("Company"). Recitals: A. The Company has applied to City for the establishment of an industrial development district or industrial rehabilitation district pursuant to the provisions of Act 198 of the Public Acts of 1974, as amended, which act requires a contract between the City and the Company to be agreed and submitted with the Company's subsequent anticipated application for an industrial facilities exemption certificate. B. That in addition to the statutory requirement, the City has determined that it is in the best interests of the taxpayers, property owners and residents of the City that this Agreement be approved and executed prior to the establishment of the requested district, and the City deems this Contract, together with the conditions set forth in the said Act to constitute a necessary element in the City's determination whether or not to create the district. C. The Company intends to install the project set forth in its application ("project") which it believes qualifies for the process of establishing the district and the application for industrial facilities exemption certificate. D. The City, provided this Agreement is executed, will determine whether to create the district based upon the potential for the production of permanent jobs, the continuation, stabilization or increase of economic activity, planning and zoning considerations and the City's general plan and intentions regarding economic development. In addition to the City policy considerations and predictions that the Company's proposed district and certificate benefit the community in those ways, the City has further determined that the contractual commitments made by the Company to thereby assist the community shall be binding on the Company and necessary to continue the tax exemption made possible by the certificate. E. This contract shall become effective upon the issuance of an Industrial Facilities Tax Exemption Certificate. NOW THEREFORE THE PARTIES AGREE: Page 1 1. COMPANY AGREEMENT. The Company irrevocably commits to the investment, job retention and job creation promises made in its application, a copy of which is attached hereto and incorporated herein. In particular the Company agrees: I.I That fifty (50) percent of the promised new jobs shall be in place with full- time employees on or before June, 1999, and one-hundred (100) percent of the said jobs shall be in place with full time employees on or before December, 1999. Finally, 100% of the jobs shall be filled and in existence with full-time employees by a date no later than two (2) years from the date of the granting of the certificate by the State Tax Commission, subject to the provisions of section 3.4 of this agreement. 1.2 That the amount of jobs listed on the application, whether new or retained, will be maintained through the life of the abatement, subject to the provisions of section 3.4 of this agreement. 1.3 The Company shall meet the affirmative action goal included in the application or in any documents supplied by the City and utilized by the Company, including any additional representations made to the City Commission on or before the date two (2) years after the granting of the certificate by the State Tax Commission. It shall maintain the said levels of employment diversity during the period of the certificate, subject to the provisions of section 3,4 of this agreement. 1.4 The Company, by the end of two (2) years from the date of the grant of the certificate by the State Tax Commission shall have completed the investment of$7,093,294 in the equipment and improvements as shown in the application, subject to the provisions of section 3.4 of this agreement. 1.5 That the improvements and equipment to receive the tax abatement treatment shall be completed on or before the date two (2) years from the date of granting of the certificate by the State Tax Commission. 1.6 The Company shall pay its specific taxes required by the act in a timely manner, and shall not delay payments so as to incur any penalties or interest. 1.7 The Company shall fully cooperate with the City representatives in supplying all requested and required documentation regarding jobs, investment, the meeting of all goals and the timely installation and utilization of equipment and improvements. The City shall be entitled to inspect at reasonable hours the Company's premises where the said improvements and equipment have been installed and where the said jobs are performed. 1. 8 The Company shall maintain, during the entire period for which the tax abatement is granted, the level of jobs, affirmative action goals, production Page2 and utilization of the improvements and equipment at the site where the district has been created and for which the tax exemption has been granted. 1.9 The Company shall not cause or fail to cure the release of any hazardous substance, or the violation of any environmental law on its premises in the City. It shall report any releases to the appropriate governmental authority in a timely and complete manner, and provide copies of said report documentation to the City. It shall comply with all orders and actions of any governmental agency having authority. 1.10 The Company shall maintain the equipment and improvements so as to minimize physical or functional obsolescence. 1.11 The Company shall continue to operate its business location in the City, containing the same number of and type of jobs, for the term of the certificate. 2. AGREEMENT BY THE CITY. Provided this contract has been executed and further provided all applications to create the district and achieve the industrial facility exemption certificate have been properly filed, the City shall, in a timely manner, determine in a public meeting to whether to create the district and whether to receive, process, and approve thereafter the Company's application for an industrial facilities exemption certificate. The City may consider this contract in a meeting separate from · and prior to the meeting in which the City considers the creation of the district and/or approval of the application for certificate. Further, the City shall require the submission of this contract signed by the Company together with its applications, before creating the district. 3. EVENTS OF DEFAULT. The following actions or failures to comply shall be considered events of default by the Company: 3.1 Failure to meet any of the commitments set forth above. 3.2 The closing of the Company's facilities in the City. Closing shall mean for purpose of this Agreement, the removal, without transfer to another site within the City of substantially all of the production facilities, and the elimination of substantially all the jobs created or retained thereby, which are set forth in the Company's application. 3.3 Failure to afford to the City the documentation and reporting required. 3.4 The failure to create or retain jobs, meet affirmative action goals or expend the funds on equipment and improvements as represented in the application within the times required hereby, unless the company can show that there has Page 3 been a loss of revenue and employment due to circumstances beyond the control of the company. In order to make that showing the company shall have the burden of supplying, to the City's satisfaction, complete and convincing documentation supporting and justifying reductions in investment, failures to attain affirmative action goals or job losses, such as, without limitation, written evidence of lost contracts, accounting information showing reduced revenues due to the loss of business, (not due to diversion of production to affiliate companies or divisions of the company), production records showing reduced quantities over significant periods of time, aud such other information required by the City to support the Company's claim that the failure to invest, failure to achieve affirmative action goals, or loss of jobs should not form the basis for a finding of default. 3.5 The bankruptcy or insolvency of the Company. 3.6 The failure to pay any and all taxes and assessments levied on the Company's property or any other taxes, local, state or federal, including but not limited to City income taxes and the withholding of said City income taxes from employees as required by the City Income Tax Ordinance. 3.7 The performance or omission of any act which would lead to revocation under MCLA 207.565, being §15 of the Act. 3.8 The violation of any provisions, promises, commitments, considerations or covenants of this Agreement. 4. REMEDIES ON DEFAULT. In the event of any of the above defaults the City shall have the following remedies which it may invoke without notice, except as may be reasonably required by the Company's rights to due process: 4.1 In the event of closing as determined after investigation of the facts and a public hearing, the Company shall be immediately liable for penalties to be paid forthwith to the city as determined as follows: 4.1.1 The Company shall pay to the City for prorata distribution to the taxing units experiencing the abatement, an amount equal to the difference between the industrial facilities tax which it has paid, and the total property taxes to the relevant taxing units which it would have paid, given its installations of improvements and equipment, during the years for which the certificate was in effect. 4.1.2 Immediate Revocation. The Company hereby consents to revocation to the IFT certificate before the State Tax Commission, without hearing, and the City shall submit a copy of this Agreement to the State Tax Commission in connection with its revocation procedure, giving Page 4 notice that the default has occurred and immediate revocation should occur. 4.2 In the event the improvements and equipment have not been installed before the two (2) year period, in addition to the revocation procedures before the State Tax Commission, the abatement should immediately be reduced by the City proportionately, and any installations which have not been finished at the end of said two (2) year period shall not be eligible for the abatement thereafter and shall be placed on the regular tax roll. 4.3 Failure to Expend the Funds Represented. In the event, (whether or not the installations have been completed), the Company has not expended the funds it has represented on its application that it would invest for the installation of equipment, the abatement shall be reduced prorata, and any remaining value of equipment shall be placed on the regular tax roll, unless the company can show, through receipts, etc. that the cost of the equipment was actually less than the amount estimated by the company (i.e., the same equipment was purchased as listed in the IFT application, but the bids came in less then expected). 4.4 Job Creation and Retention. In the event the promised number of jobs have not been created or retained at the end of the two (2) years after the grant of the certificate by the State Tax Commission, the abatement shall be proportionately reduced, unless the company can show that the loss of jobs, or inability to hire as many people as expected, is due to circumstances beyond the control of the• company (such as an economic downturn): 4.5 Affirmative Action Goals. In the event, after one (1) year from the grant of the certificate by the State Tax Commission, the affirmative action goals of the City for additional jobs have not been met on a prorata basis, the abatement shall be revoked. 4.6 For other violations of this Agreement or for actions or omissions by the Company amounting to grounds for revocation by statue, the City shall recommend to the State Tax Commission immediate revocation of the certificate. 4. 7 Special Assessment. For any amount due to be paid to the City, under this Section 4, the Company consents that the City shall have a personal action against the Company for the said amount, and in addition, cumulatively, and not by election, the City shall have a special assessment lien on all the property of the Company personal and real, located in the City, for the collection of the amounts due as and in the manner of property taxes and in such case the collection of the said special assessment shall be accomplished by addition by the City to the Company's property tax statement regularly rendered. Page 5 ,. 5. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Michigan applicable to contracts made and to be performed within the State of Michigan. 6. Counterparts. This Agreement may be executed in one or more counterparts. Notwithstanding such execution all such counterparts shall constitute one and the same Agreement. 7. Benefit. This Agreement shall be binding upon and inure to the benefit of the respective parties, their successors and personal representatives. 8. Effective Date. This Agreement shall be effective on the date the State of Michigan Tax Commission grants the company at Industrial Facilities Exemption Certificate. and· - - - - - - - - - - - - Its_ _ _ _ _ _ _ _ __ Page 6 Commission Meeting Date: September 28, 2004 Date: September a, 2004 To: Honorable Mayor & City Commission From: Planning & Economic Development Department ~ RE: Groundwater Ordinance Amendment SUMMARY OF REQUEST: To approve an amendment to the City Groundwater Ordinance to include properties that have been identified as "affected" premises as defined in the Groundwater Ordinance. An "affected" premises shall mean a parcel of property any part of which is located within an appendix map made part of this ordinance, as originally enacted or amended, which map shows the parcel to have contaminated groundwater under any part of the parcel. Brunswick Corporation (owner of the parcel) and R & B Trailer Leasing (adjacent to the parcel) have been notified by mail of the amendment herein. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To approve the amendment. COMMITTEE RECOMMENDATION: None. Contaminated sites approved by City Commission , ~ llr~ - D MichCon Brunswick .._ Wesco D Lakeview mart facility c::J Speedway _ _ Port City Paints - Verplank D Nordco D Lemmen D Admiral Petroleum EI:] Shaw Walker W*E N s CITY OF MUSKEGON MUSKEGON COUNTY, MICHIGAN ORDINANCENO. 2139 An ordinance amending the City Code by adding to Ordinance No. 2039 (Muskegon City Code Sections 24-46 through 24-52.5) certain identifying "Appendix Maps" and descriptions of properties determined to be "affected premises" on which groundwater wells for the delivery of water for human consumption and irrigation, and the use of such wells which may influence the movement of contaminated groundwater, are prohibited by the said Ordinance No. 2039. The said Ordinance No. 2039 is amended by this Ordinance. THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS: I. The properties identified in this amending ordinance are determined to be affected premises within the meaning of, and regulated in accordance with, Ordinance 2039 or any successor ordinance prohibiting wells on such premises. The said affected premises constitute the Brunswick Bowling and Billiards (North Plant) Facility and are located in the vicinity of Forest Avenue and Messler Street: Owner of Parcel Property Tax Number Brunswick Corporation 61-24-131-100-0004-00 R&B Trailer Leasing 6!-24-205-431-0007-00 2. Attached to this ordinance and incorporated herein are Appendix Maps locating the affected premises and their legal descriptions. 3. This ordinance shall be effective ten (I 0) days after publication. In the event any part of this ordinance is finally determined to be invalid or unenforceable by a court having jurisdiction, then said determination shall not affect the validity of the remaining provisions. This ordinance adopted: Ayes: Wannington, Carter, Davis, Gawron, Larson, Shepherd, Spataro Nays: _N_o_n_e_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Adoption Date: September 28, 2004 Effective Date: October 12, 2004 First Reading: September 28, 2004 Second Reading: - ~ N / ~ A ~ - - - - - - - - - - - - - - - - - - - - - - - By MUSKEb CITY OF ~Q. . Gail A. Kundinger,Cityaerk CERTIFICATE This ordinance was adopted at a meeting of the City Commission, held on September 28 , 2004. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. CITY OF MUSKEGO By-.:t=.~~ ,~ Q ~ ,: :....__1;~~~~~- - Gail A. Kundinger, City Clerk Publish: Notice of Adoption to be published once within ten (I 0) days of final adoption. APPENDIX NO. Affected Premises Contaminated or Subject to Contamination by the Groundwater from the Brunswick Bowling and Billiards (North Plant) Facility Real Property Tax Assessment Parcel Numbers & Legal Descriptions Brunswick Bowling and Billiards - North Plant: Parcel ID No.: 61-24-131-100-0004-00 Legal Description: BEG @ NW COR BLK 451 TH S TO S LINE DALE AVE EXTD TH W TO NW COR LOT 16 BLK 452 TH S TO SW COR LOTS BLK 452 TH STOA PT 495 FT N OF SW COR THE 1.2 FT TH S 48 FT TH W 172 FT TO W LINE BLK 452 TH S TO A PT 495 FT N OF SW COR BLK 457 THE 92 FT TH S 67 FT TH N 89 DEG 38 MINE 109.45 FT TH S 0.69 FT TH W 139 FT TH N 6.6 FT TH W 1.2 FT TH S 36.83 FT TH W 6 FT TH S 87.17 FT TH W 61.8 FT TOW LINE BLK 457 TH S 250.6 FT TO SW COR BLK 457 THE TO SECOR BLK 459 TH NWLY ALONG WLY LINE BLK 438 TO NW COR BLK 438 TH W TO BEG ALSO LOT 16 BLK 438 EXP ART USED FOR RR R/W BEING ENTIRE BLKS 451458459 & PARTS OF BLKS 438 452 457 ALSO VAC STREETS & ALLEYS IN SAME R&B Trailer Leasing: Parcel ID No.: 61-24-205-431-0007-00 Legal Description: CITY OF MUSKEGON, REVISED PLAT OF 1903, BLK 431, LOT 7, DESC AS COM AT INT OF NL Y ROW LN FOREST A VE & WL Y ROW LN PENNSYLVANIA RR TH N 89D 58M W 194.10 FT TO ELY ROW WAGNER AVE TH N 27D 42M I 5S W 395.69 FT TO SLY ROW LN SOUTHERN AVE TH 3 173.95 FTTO SD WLY ROW PENNSYLVANIA RR THS 30D !3M E 405.55 FT TO POB [Insert Maps) CITY OF MUSKEGON NOTICE OF ADOPTION TO: ALL INTERESTED PARTIES Please take notice that on September 28, 2004, the City Commission of the City of Muskegon adopted an ordinance to amend the Muskegon City Code limiting and regulating groundwater wells for the delivery of water for human consumption and irrigation. The amending ordinance identifies the following affected properties upon which groundwater wells for the delivery of water for human consumption and irrigation are prohibited. The properties are listed by their street address and property tax identification numbers. The full ordinance, available at the City Hall, contains the legal descriptions of the properties affected: Property Address Property ID Numbers 525 W. Laketon Avenue 61-24-131-100-0004-00 Muskegon,MI 49441 1600 Messler Street 61-24-205-431-0007-00 Muskegon,MI 49441 Legal descriptions of the above properties, and a map showing the location of contaminated properties and sources of contamination, are attached to the full ordinance and may be inspected and copied in connection with any inspection of the ordinance. Copies of the ordinance may be viewed and purchased at reasonable cost at the Office of the City Clerk, City Hall, 933 Terrace Street, Muskegon, Michigan, during regular business hours. This ordinance amendment is effective ten (10) days from the date of this publication. CITY OF MUSKEGON Published: October 2 2004 By_ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Gail A. Kundinger, Its Clerk ---------------------------------------------------------- PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PAS SAGE. Z:\WORO\Groundwater Ord. Public Notice. Brunswick.doc Rev. 4/18/03 City of Muskegon Petition To Designate Affected Premises Under Water Supplies Ordinance The City of Muskegon passed a groundwater protection ordinance (Ordinance No. 1133) on August 26, 1997. This groundwater protection ordinance was amended on December 12, 2000, and is now referred to as Ordinance No. 2039. The ordinance prohibits the use of groundwater wells and secondary water supplies under certain circumstances and in certain locations, to prevent exposure to contaminated groundwater, as well as to prevent wells from influencing the movement of contaminated water. No groundwater wells may be installed on affected premises unless the use of such well is solely for commercial or industrial non-contact cooling or processing purposes (with appropriate DEQ and local approvals), construction de-watering, DEQ or EPA-approved groundwater monitoring or remediation systems, or a public emergency. If the Petitioner is requesting that the City add one or more.affected premises to the City's list, the following information must be provided in full. Please note that no action will be taken on your Petition until .!!ll requested' materials have been submitted to the City Planning Department, along with two (2) complete copies. · 1. ime and address of Petitioner:, Name/telephone of contact person: · k . '/"//11.ft<1tc 0,,, Meo ft an 111,. wmes lAJh,'-ft1KPc ~s w; l.qk f" l/~P.81/3 mw..- 8 t? :l()j tll IL A,£tiwt"ff -. VI .. Note: Attach add,uonal sheets, as necessary . Column A: Name of the hazardous substance Column B: Chemical Abstract Service (CAS) Number for the hazardous substance Column C: Sample location for Column D (show on site map) Column D: Maximum hazardous substance concentration measured on the property, including units of measurement Column E: Direction of contaminant migration, if known Attachment for City of Muskegon Petition for Ordinance No. 2039 3(a) Legal Description of Source or Site of Contamination Attached 3(b) Name, Address, and Telephone Number of Persons Having Interest as Owner or Occupant of the Source Property Mr. James Whitaker Brunswick Corporation 525 W. Laketon Avenue Muskegon,MI49441 231-725-3214 3(c) Nature and Extent of Contamination In 1984, a toluene release was discovered from one of the two 10,000-gallon toluene USTs located in the northwestern comer of the property. An estimated 6,000 gallons were released. Brunswick has been working to address the toluene-impacted groundwater for many years. In addition to removing the former leaking underground storage tank and excavating the surrounding soil that are believed to have been the original source of the toluene contamination, Brunswick has implemented numerous groundwater cleanup remedies including groundwater removal and treatment, air sparging with soil vapor extraction, injection of Oxygen Release Compound into the groundwater and demonstration that natural attenuation mechanisms are working to degrade the toluene. These remedies removed much of the toluene present. At one time, no toluene was detected in groundwater for over a year (no detections during five consecutive monitoring events), and the remediation systems were decommissioned with the approval of the MDEQ. However, subsequent monitoring indicates that toluene concentrations returned and now are observed intermittently in the groundwater; therefore, Brunswick continues to monitor the groundwater in this area. Brunswick samples groundwater for toluene in the wells on its property and the R&B Leasing property to the north (as well as others) at a minimum of four times per year and sometimes as often as several times per month. These data are included in lengthy reports submitted to the MDEQ four times per year. The most recent report indicates that the sample collected from MW-2A, located immediately adjacent to Forest Ave. on Brunswick's property contains a toluene concentration of I. I milligrams per liter (mg/I). A sample from MW-8 collected in January 2004, but not yet reported to the MDEQ, had a toluene concentration of 8.2 mg/L. This well is located on R&B Leasing property immediately across Forest Avenue from the source area (see attached Figure). The toluene concentration in groundwater at these two wells fluctuates and is often times found to be below the detection limit of 0.001 mg/I. Toluene concentrations in the remaining monitoring wells are generally below detection limits or well below the MDEQ Part 201 RDW criteria. Monitoring of the toluene contamination continues and while no active remediation system is in place, there is documented evidence of natural degradation. It is important to emphasize that there is no added risk to public health since no one drinks the groundwater in this area. 3(e) Affected Properties Address: 1600 Messler St., Muskegon, MI 49441 Parcel ID#: 61-24-205-431-0007-00 Owner: R&B Trailer Leasing Contact: M. Connie Hanes, 615 W. Dale Ave, Muskegon, MI 49441 Address: Forest Avenue between Messler St. and Eight St., Muskegon, MI 49441 Parcel ID#: NA Owner: City of Muskegon Contact: Mr. Brian Lazor, Planning Dept., 933 Terrace, P .0. Box 536, Muskegon,MI49443 3(f) Scaled Map of source of Contamination and Affected Premises Attached 3(g) Groundwater Well Usage and Status No water supply wells are present on the subject property or affected properties. There are, however, monitoring wells located on the northwestern portion of the site and offsite. E)- 1/~ _ 24-205-451-0001·00 700 MESSLER ST Map #:24-31-30-300-003 12/28/2000 Legal Description BRUNSWICK CORP North Plant 1 2 5 W LAKETON TTN: MARK L SCHULTZ MUSKEGON, MI 49441 l"lass. 301 School: 61010 ,;1EG @ NW COR BLK 451 TH S TO S LINE DALE AVE EXTD TH W TO NW COR LOT 16 BLK 452 TH S TO SW COR LOT Is BLK 452 TH STOA PT 495 FT N OF SW COR THE I .1 2 FT TH S 48 FT TH W 172 FT TOW LINE BLK 452 Tl{ S TO A PT 495 FT N_ OF SW COR B_LK 457 TH E 92 FT ·ia S 67 FT TH N 89 DEG 38 MINE 109.45 FT TH S 0.69 FT TH W 139 FT TH N 6.6 FT TH W 1.2 FT TH S 36.83 FT TH W 6 FT TH S 87,17 FT TH W 61.8 FT TOW LINE BLK 457 TH S 250,6 FT TO SW COR BLK 457 'l1l E I :'O SE COR BLK 459 TH NWLY ALONG WLY LINE BLK 438 ' .U NW COR BLK 438 TH W TO BEG ALSO LOT 16 BLK 438 EX PART USED FOR RR R/W BEING ENTIRE BLKS 451 458 ;s9 & PARTS OF BLKS 4l8 452 457 ALSO VAC STRgETS & I J.LE'lS IN SAME _j ~ ~ .,.._,5 • I I~ ~ "' , &vw-1J• 01 Ii MAXIMUM PLUME BOUNDARY BASED ON BIOPLUME MODELING USING CONSERVATIVE INPUT PARAMETERS PLUME BOUNDARY BASED ON ANALYTICAL DATA FROM MONITORING WELLS ~ r.:i > 52 LEGEND Q A - MONITORING WELL LOCATION >-< < a= ()/' t::,. - 0 DRY WELL LOCATION -. PURGE WELL "LOCATION < r.:i 8 X - - SVE WELL ASW WELL (/J 597.Q-- - GROUNDWATER ELEVATION CONTOUR {FT) ~ - - GROUNDWATER FLOW OrRECTION co 0, a" ~ I '":!°'°'. '-)/ / \ ' '5''~- NOT[; ALL WELL 1..0CATIONS (XC[PT MW-1.3 AND , MW-SA ARE .6ASE0 UPON DECEMBER 1998 SURVEY. .I....,_,, .,, "'' '" SCALE IN f'ECT 1907PLVMEBOUN KOR:l10~02_ flGURE 1 BRUNSWICK GROUNOWAT!:R CONTOUR MAP A$ MEASUR!:0 l..,l""-'l CORPORATION ON JANUARY 22, 2002 SHOWING ESTIMATED PLUME 90UNOAR!ES BRUNSWICK EARTH®TECH MUSKEGON. MICHIGAN ,.PF!li.. 200:2 19U7.01 Date: September 28, 2004 To: Honorable Mayor and City Commissioners From: Finance Director RE: Audit Contract Extension SUMMARY OF REQUEST: The contract for the city's annual audit is expired. Because of the possibility that voters may approve changes to the city's fiscal year this November, staff is recommending that the contract with the current independent audit firm (Hoffman, Steensma & Plamondon) be extended through 12/31/04 and through the potential stub-year period (6/30/05 or 9/30/05). This will provide much needed continuity through a difficult transition. Waiting to bid out audit services will have the added advantage (if the fiscal year is changed) of attracting more competitive bids, since the current 12/31 year-end is unattractive to many CPA firms because of tax preparation season. Typically audit contracts are awarded for a five- year period so it is sensible to wait until we know what the future fiscal year-end will be. FINANCIAL IMPACT: Proposed cost for 12/31/04 audit - $34,000 which is the same as for the 12/31/03 audit. Proposed cost for the stub-period audit -$26,000. BUDGET ACTION REQUIRED: None at this time. The 2005 budget incorporates funding for the 12/31/04 audit. If voters approve the fiscal year proposals, the entire 2005 budget will need to be reforecast and restructured at a later date. STAFF RECOMMENDATION: Approval of the audit contract extension to cover the 12/31/04 audit and the audit for the stub year, if the November ballot proposal is approved by voters. COMMITTEE RECOMMENDATION: None. 9/18/97 1 Jiojjman, Steensma & Pfamonclon, P.L.C. Certified Public Accountants and Consultants ROGER E. HOFFMAN, C.PA DOUGLAS A. PLAMONDON. CPA ROGER D. STEENSMA. CPA RANDY J. NOVOTNY. CPA September 14, 2004 Mr. Tim Paul City of Muskegon · 933 Terrace Street Muskegon, Michigan 49443 Dear Tim: We are pleased to propose on the audit of the fmancial statements and the federal awards for the year ending December 31, 2004 and for the six months ending June 30, 2005. It is our understanding that the six months ending June 30, 2005 is subject to voter approval. In the event that the proposal to change year end is defeated, our audit contract will be for the year ending December 31, 2004 at a fee of $34,000. If we perform the June 30, 2005 audit, our fee will be $26,000. Our accounting hourly rate of $42 will be effective until September 30, 2005. If you have any questions, please contact me. Very truly yours, Douglas A. Plamondon 22 1 W.WebsterAve .. Su ite502 · Muskegon. Ml 4 9440- 1243 · ( 2 3 1)728 -5176 · Fax(231)726-3530 Date: September 28, 2004 To: Honorable Mayor and City Commissioners from: Finance Director RIE: Proposed Water Rate Increase SUMMARY OF REQUEST: The City is in the midst of a $16.5 million renovation of the water filtration plant. To fund these improvements, the city has borrowed $13.9 million from the Drinking Water Revolving Fund (DWRF) and has committed other resources to the project. It is necessary to raise water user fees significantly in order to cover debt service requirements associated with the filtration project and to offset rapidly rising operational costs. staff is recommending that the water user charge be raised from the current $1.09/hcfl to $1.40/hcfl effective January 1, 2005. FINANCIAL IMPACT: The following table shows how the rate increase will impact typical residential households: Sample Users 011arterlv Water Bill 011arterlv Water Bill Before Increase After 01101/05 l11crease Using 7,500 gallons per month (1-2 person $32.70 $42.00 household) Using 15,000 gallons per month (3-4 person $65.40 $84.00 household) As shown on the attached survey, Muskegon's residential water rates will continue to be below the average for Michigan communities after implementation of the increase. BUDGET ACTION REQUIRED: None al this lime. The 2005 water fund budget incorporates the projected revenues from the rate increase STAFF RECOMMENDATION: Approval of the attached resolution implementing the proposed water rate increase. COMMITTEE RECOMMENDATION: None. 9/18/97 CITY OF MUSKEGON Resolution No. 2004-87(c) A Resolution amending the general fee resolution of the City. RECITALS A review of the water rates has been undertaken by staff and consultants, City staff recommends and City commission has detennined that an increase in the rates for water service is justified in the opinion of the City Commission. THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION: 1. For service provided after January 1, 2005, the rate for water shall be changed from $1.09 per hundred cubic feet to $1 .40 per hundred cubic feet. This resolution passed. Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington, Carter Nays: None CITY OF MUSKEGO~ By ~Q. Gail A. Kundinger,Clerk ~,.:_, CERTIFICATE This resolution was adopted at a meeting of the City Commission, held on September 28, 2004. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. Typical Monthly Water Bill Ranked from Lowest (1) to Highest (57) Residential Customers - 15,000 Gallons Usage Per Month (Bold Type Indicates Local Area Communities) Water Community Bill Rank Allen Park 31.84 36 Ann Arbor 35.46 42 Battle Creek 26.00 21 Ba Cit 37.60 47 Bloomfield Township 37.50 46 Burton 44.40 55 Canton 30.00 28 Chesterfield Township 22.67 9 Clinton Township 24.60 16 Dearborn 23.52 12 Detroit 24.82 18 East Lansing 39.05 49 Eastpointe 29.80 27 Farmington Hills 36.55 44 Flint 53.78 60 Fruitport Township 37.00 45 Garden City 34.09 39 Georgetown Township 17.50 3 Grand Blanc Township 43.40 54 Grand Haven 22.35 8 Grand Rapids 34.79 40 Holland 18.95 4 Holland Township 25.25 20 Independence Township 24.33 15 Jackson 40.55 51 Kalamazoo 21.42 6 Kentwood 40.84 53 Lansing 38.28 48 Livonia 30.38 29 Macomb Township 24.70 17 Midland 24.00 14 Montague 30.89 33 Muskegon (Proposed Rate Effective 1/1/05) 28.00 24 Muskegon (Rate Effective 1/1/04) 21.80 7 Muskegon Heights 22.79 10 Muskegon Township 46.00 57 North Muskegon 51.33 59 Norton Shores 30.72 31 Novi 40.41 50 Oak Park 36.17 43 Plymouth Township 33.10 38 Port Huron 23.21 11 Rochester Hills 40.65 52 Roosevelt Park 48.06 58 Royal Oak 27.00 22 Sa inaw 12.95 1 Saginaw Township 31.21 34 Shelby Township 44.55 56 Southfield 31.92 37 Southgate 30.60 30 Sterling Heights 19.03 5 Ta lor 23.66 13 Tro 30.80 32 Walker 35.43 41 Warren 27.90 23 Waterford Township 13.33 2 Westland 31.35 35 Whitehall 28.35 26 Wyoming 25.07 19 Ypsilanti Township 28.22 25 Average $31.17 Median $30.66 Note: Assumes 15,000 gallons (or 1,000 cubic feet) monthly usage and a 5/8" (or nearest equivalent) meter size. Source: April 2003 Michigan Water/Wastewater Rate Survey conducted by Black & Veatch Corporation, Management Consulting Division and supplemented by local area survey as of August 2004. Table 11 Projected Water Rate Calculations CITY: 2004 2005 Commodity Charge Per 100 cubic Feet= (Expenses Allocated to All Customers/Total Equivalent Billable Flow) x 1.00 1.09 1.40 MUSKEGON COUNTY NORTHSIDE: 1,;ommodity Charge Per 100 Cubic Feet = (Expenses Allocated to All Customers/Total Equivalent Billable Flow) x 1.25 1.36 1.75 ROOSEVELT PARK: vommodity Charge Per 100 Cubic Feet= (Expenses Allocated to All Customers/Total Equivalent Billable Flow) x 1.35 1.47 1.89 NORTH MUSKEGON: vommodity Charge Per 100 Cuo1c Feet= (Expenses Allocated to All Customers/Total Equivalent Billable Flow) x 1.35 1.47 1.89 MUSKEGON TOWNSHIP: Base Commodity Charge Per ·1uu 1,;ubic Feet= (Expenses Allocated to All Customers/Total Equivalent Billable Flow) x 1.35 1.47 1.89 NORTON SHORES: vommodity Charge Per 100 1,;ubic Feet= (Expenses Allocated to All Customers/Total Equivalent Billable Flow)x 2.00 2.18 2.80 MISC. OUTSIDE: Commodity Charge Per 100 Cuo1c Feet= (Expenses Allocated to All Customers/Total Equivalent Billable Flow) x 1.50 1.64 2.10 0482.034 Muskegon Water Rate Study 9/22/2004 10:41 AM Table 12 Water System Revenues 2000 2001 2002 I 2003 I i 2004 2004 591 WATER FUND (Actual) (Actual) (Actual) i (Actual) (Budget) (RevEst) 2005 2006 2007 I Revenues i Special Assessments - - - - -. - - - - EDA Grant Seaway Ind Park - - - - - - - - - State Grant Shoreline Drive - - - - i - - - - - State Shared Revenue - i - - ' - - - - . - - Charges: City (2000, 2001 i included all customers; 2002 Rev Est, 2003 Budget included all I except Muskegon Twp) 3,531,540 3,980,059 4,084,612 3,876,432 3,031,197, 3,031,197 3,932,214 3,971,536 ' 4,011,251 Charges: Muskegon County Northside i 243,748 243,748 319,333 325,719 332,234 Charges: Roosevelt Park 350,970 350,970 455,295 . 459,848 ! 464,446 Charges: North Muskegon i 466,123 466,123 604,677 610,724 616,831 Charges: Muskegon Township -' - - - 472,700 472,700 607,137 607,137 607,137 i Muskegon Town ship Contract Operations Income - - - - 200,000 200,000 200,000 , 200,000 200,000 Charges: Norton Shores 8,947' 8,947 11,606 11,723 11,s4if Charges: Misc. Outside - - - - 1,465 1,465 1,901 1,920 1,939 Hydrant Rental - Muskegon Twp i - - - - i - - - - - Project Reimbursements - - - - - 800,000 300,000 , - - Interest Income• 320,696 230,864 84,467 51,889 51,889 51,889 51,889 51,889 51,889 ~ . Operating Transfers In - 454,812 - - - - - - - Other (NEW BOND ISSUANCE) 84,101 52,184 - 6!0,425 I 10,700,000 11,000,000 ' 2,900,000 - - Subtotal 3,936,337 4,717,919 4,169,079 4,598,746 1 15,527,039 16,627,039 9,384,051 6,240,495 6,297,567 i ---·~ Expenditures 4,047,743 5,629,540 5,050,939 5,365,942 17,219,705 I 18,104,349 10,040,711 6,046,181 6,138,196 Available Cash Balance, Beginning I of Year** 6,094,347 ' 5,982,941 5,071,320 4,189,460 3,422,264 3,422,264 2,444,954 1,788,295 1,982,609 Transfer from Cash Balance •• ! 111,406 911,621 881,860 767,196 1 1,692,666 977,310 ! 656,660 ! (194,314) (159,371) Available Cash Balan"i:e, End of ~ Year 5,982,941 5,071,320 4,189,460 3,422,264 1,729,598 2,444,954 1,788,295 1,982,609 2,141,979 ' i •• Amount for 2004 - 2007: 51,889 l I ' ' Muskegon Water Rate Study 0482.034 9/20/2004 1:27 PM To: Mayor and City Commission From: Commissioner Clara Shepherd Date: September 28, 2004 RE: Travel Assistance to NLC Congress of Cities Conference I am requesting assistance with costs associated with attendance at the NLC Conference held in Indianapolis, Indiana from November 30 through December 4'\ 2004. I serve on the NLC Community and Economic Policy Committee. This conference will deal with CDBG Funding and the HOME program and land use. Cost for the registration is $415.00 and hotel costs will be approximately $450. Ifmy fellow commissioners would please authorize city payment for the registration and half of the hotel, I will be picking up costs associated with travel, food, and half of the hotel. I have spent much of my own money to travel for the benefit of the city at other conferences and have brought back material that is helpful to our city. I also have paid all expenses for travel to meetings for Michigan Municipal League Board, representing our city.
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