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CITY OF MUSKEGON
CITY COMMISSION MEETING
AUGUST 12, 2003
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
o CALL TO ORDER:
o PRAYER:
o PLEDGE OF ALLEGIANCE:
o ROLL CALL:
o HONORS AND AWARDS:
o PRESENTATIONS:
o CONSENT AGENDA:
a. Approval of Minutes. CITY CLERK
b. Community Relations Committee Recommendations. CITY CLERK
c. Request to Raise the Mexican Flag. CITY CLERK
d. Healthcare Provider - Retirees Over 65. FINANCE
e. Amendment to the "Policy for Acquisition and Disposition of
Residential Properties". PLANNING & ECONOMIC DEVELOPMENT
f. Vacation of a Portion of Mclaren Street. PLANNING & ECONOMIC
DEVELOPMENT
g. Consent Agreement Policy. INSPECTION SERVICES
h. Professional Services Agreement with Muskegon Charter Township.
INSPECTION SERVICES
i. Approval of 2003-2004 Subrecipient and Community Housing
Development Organization {CHDO) Agreements. COMMUNITY &
NEIGHBORHOOD SERVICES
j. Purchase of Lot on Octavius. COMMUNITY & NEIGHBORHOOD
SERVICES
k. Approval of Contractor for Construction of House at 361 Oak.
COMMUNITY & NEIGHBORHOOD SERVICES
I. Approval of Contractor for Construction of House at 1668 Beidler.
COMMUNITY & NEIGHBORHOOD SERVICES
• PUBLIC HEARINGS:
a. Amendments to Brownfield Plan - Gillespie Development. Loft
Properties, LLC and Parmenter O'Toole. PLANNING & ECONOMIC
DEVELOPMENT
• COMMUNICATIONS:
• CITY MANAGER'S REPORT:
• UNFINISHED BUSINESS:
• NEW BUSINESS:
a. Employee Suggestion Award Program. CIVIL SERVICE
b. Disadvantaged Contractor Recommendations. AFFIRMATIVE
ACTION
c. Request for Final Planned Unit Development Approval for a 40-Unit
Senior Housing Development at Mclaren St. and Wesley Ave.
PLANNING & ECONOMIC DEVELOPMENT
d. Proposed Water Rate Increase. FINANCE
e. Energy Savings Performance Contract - L. C. Walker Arena. CITY
MANAGER
f. Designation of Voting Delegate and Alternate Voting Delegate for
MML Annual Meeting. CITY CLERK
g. Concurrence With the Housing Board of Appeals Notice and Order
to Demolish the Following:
1. 1253 Calvin (tabled from last meeting)
2. 1032 Wood
3. 509 Adams
4. 424 Orchard
• ANY OTHER BUSINESS:
• PUBLIC PARTICIPATION:
• CLOSED SESSION: To discuss pending litigation
• Reminder: Individuals who would like to address the City Commission shall do the following:
• 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 l O minutes if previously registered with City Clerk.)
• ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO WANT TO
ATTEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON, PLEASE CONTACT GAIL A. KUNDINGER,
CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TDD: (231) 724-4172.
Date: August12,2003
To: Honorable Mayor and City Commissioners
from: Karen Scholle, Director of Civil Service/Personnel
R.IE: Employee Suggestion Award Program
SUMMARY OF REQUEST: Presentation of 2003 first quarter employee
suggestion award to Barb Shullenberger of Administration for her
suggestion to switch to computer template for letterhead rather than pay
the cost of printing it.
FINANCIAL IMPACT: $250 award from 2003 budget.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval
Date: August12,2003
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 Regular
Commission Meeting that was held on Tuesday, July 22, 2003.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
AUGUST 12, 2003
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 5:30pm, Tuesday, August 12, 2003.
Mayor Warmington opened the meeting with a prayer from Reverend Tyrone
Matthew's from the Walkers Memorial Church of God in Christ, after which members
of the City Commission and members of the public joined in reciting the Pledge of
Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Warmington, Vice Mayor Karen Buie; Commissioners
Stephen Gawron, William Larson, Robert Schweifler, Clara Shepherd and Lawrence
Spataro; Assistant City Manager Lee Slaughter, City Attorney John Schrier and City
Clerk Gail Kundinger.
HONORS AND AWARDS:
a. Employee Suggestion Award Program. CIVIL SERVICE
Mayor Warmington presented a Employee Suggestion Award Certificate with
$250.00 worth of coupons from the Chamber of Commerce to Barb Shullenberger for
her suggestion regarding saving of monies on letter head paper.
2003-61 CONSENT AGENDA:
a. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
meeting that was held on Tuesday, July 22, 2003.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
b. Community Relations Committee Recommendations. CITY CLERK
SUMMARY OF REQUEST: At the August 4, 2003 Community Relations Committee
meeting the following was recommended by the committee members:
l. Removal of Toya Davis from the Land Reutilization Committee
2. Appointment of Robert Hill to the Land Reutilization Committee.
3. Acceptance of resignation of Pat Strum from the Public Relations Committee
4. Appointment of Bob Henry to the Public Relations Committee.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Concur with the Community Relations Committee
recommendations.
c. Request to Raise the Mexican Flag. CITY CLERK
SUMMARY OF REQUEST: "Latino's Working for the Future" requests permission to fly
the Mexican Flag outside City Hall on Saturday, September 13, 2003, in honor of
Mexican Independence Day.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval
d. Healthcare Provider - Retirees Over 65. FINANCE
SUMMARY OF REQUEST: For several years the City has offered retirees over age 65
the option of receiving a $50.00 per month stipend towards the cost of a
commercially-provided Medigap policy. This was done in response to complaints
that the City's regular healthcare coverage for retirees over 65 was inadequate.
The City works with a third party service provider (MagnaCare) to find the best
medigap policy values for retirees and, to coordinate premium billings.
MagnaCare is recommending that the current provider (Oxford Life) be replaced
with Hartford Life Insurance effective October l, 2003. The documents the City
needs to sign to effect this change have been reviewed by the City Attorney.
FINANCIAL IMPACT: no direct financial impact on the city. The monthly stipend
remains $50.00.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize Mayor and Clerk to sign the necessary
documents.
e. Amendment to the "Policy for Acquisition and Disposition of
Residential Properties" PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Due to several situations that have arisen in the past few
months regarding illegal property splits due to foreclosure, staff has worked with
the City Attorney to develop language to address this issue. The language is
proposed to be an amendment to the "Policy for Acquisition and Disposition of
Residential Properties".
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the amendment to the policy and have
the Mayor and City Clerk sign the resolution.
f. Vacation of a Portion of Mclaren Street. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: Request for the vacation of a portion of McLaren St., north
of Wesley Ave.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends vacation of the portion of McLaren
St., with the conditions listed in the first resolution, and to allow the Mayor and
Clerk to execute the second resolution once those conditions have been met.
COMMITTEE RECOMMEDATION: The Planning Commission recommended the
vacation, with the conditions listed in the resolution. The vote was unanimous with
T. Johnson and T. Harryman absent.
g. Consent Agreement Policy. INSPECTION SERVICES
SUMMARY OF REQUEST: This is to request the City Commission approve the
Consent Agreement Policy. This policy will allow staff to enter into a consent
agreement with a property owner without taking the agreement to the
Commission for approval. This will be utilized by staff in an effort to expedite the
approval allowing the property owner to begin the repairs ordered.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve and authorize the Mayor and Clerk to sign
the policy.
i. Approval of 2003-2004 Subrecipient and Community Housing
Development Organization (CHDO) Agreements. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To direct the Mayor and City Clerk to sign all of the 2003-
2004 approved agreements for the City's sub-recipients and CHDO's. The City
Commission approved the funding for each of the non-profits last spring during
the City's Consolidated Planning process.
FINANCIAL IMPACT: Funding will be allocated from the 2003-2004 CDBG and
HOME programs
BUDGET ACTION REQUIRED: None. The City Commission made budgeting decision
last spring.
STAFF RECOMMENDATION: To direct the Mayor and Clerk to sign agreements.
j. Purchase of Lot on Octavius. COMMUNITY & NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the purchase of a lot on Octavius from a Mr.
James Douglas for $200.00. The property description is City of Muskegon Revised
Plat of 1903 South ½ Lot 10 Block 149. It is adjacent to 503 Octavius, a current City
rehabilitation project. If this is approved, the two lots will be combined in order to
create a lot in compliance with the City's current zoning guidelines.
FINANCIAL IMPACT: The $200.00 will be added to the cost of the rehabilitation
project at 503 Octavius.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the purchase.
k. Approval of Contractor for Construction of House at 361 Oak.
COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the contract with Holden Construction 291
Washington, Muskegon, Ml for the construction of the house at 36 l Oak for the
price $116,083. The house at 36 l Oak will replace a former Turnkey 3 home that
was recently demolished by the City of Muskegon. The project at 361 Oak is
under the Operation "At Long Last" AKA Shangaliwa program. After the house is
completed, it will be sold to a qualified first-time homebuyer as part of the City of
Muskegon's aggressive neighborhood revitalization efforts. The funding for this
project will be supplied from the City of Muskegon HOME funds from the U.S.
Department of Housing and Urban Development.
FINANCIAL IMPACT: The funding for the project will be taken from the City's 2002
HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the contract with the fore mentioned
contractor and direct the Mayor and Clerk to sign the contract.
I. Approval of Contractor for Construction of House at 1668 Beidler.
COMMUNITY & NEIGHBORHOOD SERVICES
SUMMAY OF REQUEST: To approve the contract with Top Notch Design, 4740
Jensen Rd., Fruitport Ml for the construction of the new home to be located at
1668 Beidler for the cost of $112, 829. The site at 1668 Beidler formerly was
occupied by a Turnkey 3 home that was recently demolished. After the
construction is completed, the new home will be sold to a qualified first-time
homebuyer continuing the City's aggressive neighborhood revitalization efforts
under the Operation "At Long Last."
FINANCIAL IMPACT: The funding for the project will be taken from the City's 2003
HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the contract with Top Notch Design and
direct the Mayor and Clerk to sign the contract.
Motion by Vice Mayor Buie, second by Commissioner Gawron to accept the
Consent Agenda as presented with the exception of item h.
ROLL VOTE: Ayes: Spataro, Warmington, Buie, Gawron, Larson, Schweifler,
Shepherd
Nays: None
MOTION PASSES
2003-62 ITEMS REMOVED FROM AGENDA
h. Professional Services Agreement with Muskegon Charter Township.
INSPECTION SERVICES
SUMMARY OF REQUEST: This is to request the City Commission approve the
Professional Service Agreement between the City of Muskegon and Muskegon
Charter Township. This agreement is to allow the Inspection Services to conduct
the electrical inspections and plan reviews for Muskegon Charter Township on a
contractual basis. It is also requested that if approved, the Commission authorize
the Mayor and City Clerk to sign the agreement.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve and authorize the Mayor and Clerk to sign
the service agreement after it has been approved by Muskegon Charter Township
officials.
Motion by Commissioner Schweifler, second by Commissioner Spataro to approve
the Professional Service Agreement between the City of Muskegon and Muskegon
Charier Township, and have the Mayor and City Clerk sign the agreement after it
has been approved by Township officials.
ROLL VOTE: Ayes: Warmington, Buie, Gawron, Larson, Schweifler, Shepherd,
Spataro
Nays: None
MOTION PASSES
2003-63 PUBLIC HEARINGS:
a. Amendments to Brownfield Plan - Gillespie Development, Loft
Properties, LLC and Parmenter O'Toole. PLANNING & ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: To hold a public hearing and approve the resolution
approving and adopting amendments for the Brownfield Plan. The amendments
are for the inclusion of property owned by Lakefront LLC (which will be sold to
Gillespie Development and Loft Properties, LLC and leased to Parmenter O'Toole)
in the Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in approving the Brownfield
Plan amendments, although the development of the offices, condominiums and
retail space, proposed by the owner/developers of the Edison landing site, will
add to the tax base of the City of Muskegon.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To hold the public hearing and approve the resolution
and authorize the Mayor and Clerk to sign the resolution.
The Public Hearing opened at 5:46pm to hear any comments from the public. No
comments were heard at this time.
Motion by Commissioner Schweifler, second by Vice Mayor Buie to close the
Public Hearing at 5:48pm and to approve the resolution adopting amendments for
the Bownfield Plan and authorize the Mayor and City Clerk to sign said resolution.
ROLL VOTE: Ayes: Buie, Gawron, Larson, Schweifler, Shepherd, Spataro,
Warmington
Nays: None
MOTION PASSES
2003-64 NEW BUSINESS:
a. Disadvantaged Contractor Recommendations. AFFIRMATIVE
ACTION
SUMMARY OF REQUEST: To approve the list of recommendations to the City's bid
proposal process.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval (The City's Equal
Opportunity Committee approved this document on 6/23/03)
Motion by Commissioner Spataro, second by Commissioner Shepherd to approve
the list of recommendations to the City's bid proposal process.
ROLL VOTE: Ayes: Gawron, Larson, Schweifler, Shepherd, Spataro, Warmington,
Buie
Nays: None
MOTION PASSES
b. Request for Final Planned Unit Development Approval for a 40-Unit
Senior Housing Development at Mclaren St. and Wesley Ave.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request for final approval for a 40-unit senior housing
development at McLaren St. and Wesley Ave. in the Jackson Hill neighborhood.
The request is from the Sterling Group.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends final PUD approval for the
development and approval of the associated plans provided that the conditions
listed in the resolution are met.
COMMITTEE RECOMMENDATION: The Planning Commission recommended final
approval of the PUD and associated plans, with the conditions listed on the
resolution, at a special meeting held on 7/28. The vote was unanimous, with T.
Johnson and T. Harryman absent.
Motion by Commissioner Larson, second by Commissioner Shepherd to approve
the final Planned Unit Development for a 40-unit senior housing development at
Mclaren St. and Wesley Ave. and approve the associated plans provided the
conditions listed on the resolution are met.
ROLL VOTE: Ayes: Larson, Schweifler, Shepherd, Spataro, Warmington, Buie,
Gawron
Nays: None
MOTION PASSES
c. Proposed Waler Rate Increase. FINANCE
SUMMARY OF REQUEST: The City's water rates were last adjusted in April 1999. Last
year, the City retained the consulting engineering firm Tetra-Tech to study the
City's water rate structure in light of 1) costly improvements to the filtration plant
being mandated by the state and, 2) significant new legal developments
impacting the structure of municipal user fees. The Tetra-Tech "Water Cost of
Service Study" has previously been distributed to City Commissioners. The
resolution implements the 2003 and 2004 rate recommendations contained in the
study.
FINANCIAL IMPACT: The proposed rate increase will generate an estimated
$975,000 per year of additional revenue for the water system in 2004. The
following table shows how the rate increase will impact typical residential
households:
Sami;1le Users Quarterly Water Bill Quarterly Water Bill Quarterly Water Bill
before Increase After 10L01 L03 Increase After 01 L0l L04 Increase
Using 7,5000 $9.20 $8.80 $10.90
gallons per month
Using 15,000 $15. 90 $17.60 $21.80
gallons per month
BUDGET ACTION REQUIRED: None at this time. The 2004 water fund budget will
incorporate the projected revenues from the rate increase.
STAFF RECOMMENDATION: Approval of the resolution implementing the proposed
water rate increase.
Motion by Commissioner Spataro, second by Commissioner Schweifler to approve
the resolution implementing the proposed water rate increase.
ROLL VOTE: Ayes: Schweifler, Shepherd, Spataro, Warmington, Buie, Gawron,
Larson
Nays: None
MOTION PASSES
d. Energy Savings Performance Contract - L. C. Walker Arena. CITY
MANAGER
SUMMARY OF REQUEST: To approve a Letter of Intent with Siemens Building
Technologies, Inc., to enter into a Guaranteed Savings Performance Contract for
the L.C. Walker Arena.
FINANCIAL IMPACT: $15,000
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve.
Motion by Commissioner Larson, second Commissioner Gawron to approve a
letter of Intent with Siemens Building Technologies, Inc., to enter into a Guaranteed
Savings Performance Contract for the L.C. Walker Arena.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Buie, Gawron, Larson,
Schweifler
Nays: None
MOTION PASSES
e. Designation of Voting Delegate and Alternate Voting Delegate for
MML Annual Meeting. CITY CLERK
SUMMARY OF REQUEST: To designate by action of the Commission, one of our
officials who will be in attendance at the Convention as an official representative
to cast the vote of the municipality at the annual meeting, and, if possible, to
designate one other official to serve as alternate.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval
COMMITTEE RECOMMENDATION: Community Relations Committee
recommended approval.
Motion by Commissioner Spataro, second by Vice Mayor Buie to designate
Commissioner Shepherd to attend the MML Annual Meeting and designate Gail
Kundinger as alternate attendee.
ROLL VOTE: Ayes: Spataro, Warmington, Buie, Gawron, Larson, Schweifler,
Shepherd
Nays: None
MOTION PASSES
f. Concurrence With the Housing Board of Appeals Notice and Order
to Demolish the Following: INSPECTION SERVICES
SUMMARY OF REQUEST: This is to request that the City Commission concur with the
findings of the Housing Board of Appeals that the structures located at 1253 Calvin
(tabled from last meeting), 1032 Wood, 509 Adams, and 424 Orchard are unsafe,
substandard, public nuisances and that they be demolished within thirty (30) days.
It is further requested that administration be directed to obtain bids for the
demolition of the structures and that the Mayor and City Clerk be authorized and
directed to execute a contract for demolition with the lowest responsible bidder.
1. 1253 Calvin
CASE# & PROJECT ADDRESS: #01-37-1253 Calvin, Muskegon, Ml
LOCATION AND OWNERSHIP: This structure is located on Calvin between Roberts
and Creston and is owned by Elizabeth Klein.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted on
7/23/0 l and an interior inspection was conducted 8/21 /0 l. A Notice and Order to
repair was issued 8/2/01. The case was heard by the HBA on 9/6/01 and the case
was tabled for 60 days at that time. The case was heard again 12/6/01 and the
owner was again granted 60 days to complete the exterior repairs. On 6/6/02 the
HBA granted 120 days to complete the exterior repairs. On 10//7 /02 the HBA
declared the property substandard and dangerous. On July 22,2003 the City
Commission tabled the case for 14 days to allow an inspection to be conducted
for an update on the status of repairs. The report from the inspectors is that no
progress has been made since their last inspection.
OWNER CONTACT: Owner appeared before the City Commission at their July 22,
2003 meeting. At that time the case was tabled until the August 12, 2003 meeting
in order to complete an interior inspection. This inspection took place on July 28,
2003 and noted that no permits have been taken for interior repairs. The roof
structure and electrical system have not been completed. Although the exterior
appears to be improved, the structure is not habitable at this time.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: General Funds
STATE EQUALIZED VALUE: $16,200
ESTIMATED COST TO REPAIR: $10,000
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision
to demolish.
Motion by Commissioner Spataro, second by Commissioner Larson to concur with
the Housing Board of Appeals to demolish 1253 Calvin St. and have staff obtain a
bid for the demolition and have the Mayor and Clerk execute the contract.
ROLL VOTE: Ayes: Buie, Gawron, Larson, Schweifler, Shepherd, Spataro,
Warmington
Nays: None
MOTION PASSES
2. 1032 Wood
CASE# & PROJECT ADDRESS: #02-46-1032 Wood, Muskegon, Ml
LOCATION AND OWNERSHIP: The structure is located on Wood between Ada and
Apple and is owned by Dean Pranger.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted on
9I 6/02 and the notice and order to repair or remove was issued 11 /25/02. On
2/6/03 the HBA declared the structure substandard and dangerous. On 5/2/03 an
interior inspection was conducted with a potential buyer. He was given a copy of
the inspection report and was in contact with the building inspector and director.
There has been no contact since May 2003.
OWNER CONTACT: Dean Pranger has not contacted the Inspection Department
at all. The only certified mail he has accepted is the Notice and Order to repair or
remove.
FINANCIAL IMPACT: CDBG
BUDGET ACTION REQUIRED: None
STATE EQUALIZED VALUE: $16, l 00
ESTIMATED COST TO REPAIR: $8,000 plus the cost to repair any interior defects.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision
to demolish.
3. 509 Adams
CASE# & PROJECT ADDRESS: #03-18-509 Adams, Muskegon, Ml
LOCATION AND OWNERSHIP: This structure is located on Adams between Marshall
and Langley in the Jackson Hill neighborhood and is owned by the State of
Michigan.
STAFF CORRESPONDENCE: A dangerous building exterior inspection was
conducted 3/19/03 and Notice and Order to repair or remove was issued 3/21 /03.
There has been no interior inspection. On 6/5/03 the HBA declared the structure
substandard and dangerous.
OWNER CONTACT: There has been no contact.
FINANCIAL IMPACT: CDBG
BUDGET ACTION REQUIRED: None
STATE EQUALIZED VALUE: $0 (state owned since 2001)
ESTIMATED COST TO REPAIR: $8,000 not including interior repairs.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision
to demolish.
4. 424 Orchard
CASE# & PROJECT ADDRESS: #03-02-424 Orchard, Muskegon, Ml
LOCATION AND OWNERSHIP: This structure is located on Orchard between Wood
and Williams and is owned by the State of Michigan.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted on
4/18/03 with the housing and building inspector. A Notice and Order to repair or
remove was issued 4/23/03 and on 6/5/03 the HBA declared the structure
substandard and dangerous. The structure has recently gone back to the state
for back taxes.
OWNER CONTACT: There has been not contact.
FINANCIAL IMPACT: CDBG
BUDGET ACTION REQUIRED: None
STATE EQUALIZED VALUE: $8,700
ESTIMATED COST TO REPAIR: $12,000
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision
to demolish.
Motion by Commissioner Spataro, second by Commissioner Gawron to concur
with the Housing Board of Appeals decision to demolish 1032 Wood St., 509 Adams
St., and 424 Orchard St,, and direct staff to obtain bids for the demolitions and
have the Mayor and Clerk execute the contract.
ROLL VOTE: Ayes: Warmington, Buie, Gawron, Larson, Schweifler, Shepherd,
Spataro
Nays: None
MOTION PASSES
2003-65 CLOSED SESSION: To discuss pending litigation
Motion by Commissioner Schweifler, second by Vice Mayor Buie to go into Closed
Session at 6:44pm.
ROLL VOTE: Ayes: Gawron, Larson, Schweifler, Shepherd, Spataro, Warmington,
Buie
Nays: None
MOTION PASSES
Motion by Commissioner Schweifler, second by Commissioner Gawron to go into
open session at 7:30pm.
ROLL VOTE: Ayes: Larson, Schweifler, Shepherd, Spataro, Warmington, Buie,
Gawron
Nays: None
MOTION PASSES
The Regular Commission Meeting for the City of Muskegon was adjourned at
7:31 PM.
Respectfully submitted,
Gail Kundinger, Mfl,~C
\g ' bl
TO: Mayor and City Commission
FROM: City Clerk
DATE: August 5, 2003 (
RE: Community Relations Committee Recommendations
At the August 4, 2003 Community Relations Committee meeting the following
was recommended by the committee members:
1. Removal of Toya Davis from the Land Reutilization Committee.
2. Appointment of Robert Hill to the Land Reutilization Committee.
3. Acceptance of resignation of Pat Strum from the Public Relations
Committee.
4. Appointment of Bob Henry to the Public Relations Committee.
SUMMARY OF REQUEST: Concur with the Community Relations Committee
recommendations.
Date: August12,2003
To: Honorable Mayor and City Commissioners
From: Gail Kundinger, City Clerk
RE: Request to Fly the Mexican Flag
SUMMARY OF REQUEST: Latina's Working For The Future requests
permission to fly the Mexican Flag outside City Hall on Saturday,
September 13, 2003, in honor of Mexican Independence Day.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval
LATINO'S WORKING FOR THE FUTURE
LA VILLITA
I I II
"I \II I·nI1
l'I, ,,,
July 30, 2003
Muskegon City Hall
933 Terrace Street
Muskegon, MI 49442
Dear Friend,
Mayor Steve Warmington and Muskegon City Commissioners,
Latino's Working For the Future is again requesting permission from the City of
Muskegon to raise the Mexican Flag on Saturday the thirteenth day of September as the
sixteenth falls on a Tuesday. As in past years we do this in honor of Mexican
Independence Day.
We thank you in advance and cordially invite you and the honorable members of the
City Commission to join with us on this day. We hope to hear from you in the
forthcoming days so we can plan accordingly
Sincerely,
Connie Navarro
RECEIVED
AUG 1 2003
MUSKEGON
CITY MANAGER'S OFFICE
CITY OF MUSKEGON
FLAG PLACEMENT POLICY
2001-139 ( b)
A. Purpose
To provide a procedure to consider requests to the City to fly flags on City owned
or occupied property or facilities (herein "City property"). The flying of the
United States of America, State of Michigan, the County of Muskegon and the
City of Muskegon flags are exempt (except as set forth herein), from this policy
and can be flown on City property or at City property by authorized City
employees or officials.
B. City Control of Flag Placement.
Except as permitted by the City Commission or City staff members with
authority, no flag, including "exempt" flags shall be placed on City property by
any person except authorized city employees or officials. The procedures and
standards set forth in this policy document shall govern the City's decision to
permit or deny permission to have a particular flag flown or displayed on City
property.
The flying of flags on City property is peculiarly within the prerogatives of the
City. Flags which are permitted to be flown on City property have the effect of
representing to the community the City's support for the organization or point of
view which is represented by the flag. The City reserves the right to refuse or
terminate the flying of any flag for the reason that unintended endorsements by
the City shall not result from this policy. It is this concern, together with the
City's acknowledgement that the flying of flags is a form of speech, which shall
guide the City in administering this policy.
C. Review Process. The Procedure.
1. Request
A request to fly a flag(s) must be submitted in writing to the City Clerk at
least 30 days prior to when the flag is proposed to be raised. The request
shall state in writing:
a.. All the reasons for the request.
b. Describe and display the flag, which shall not be changed in the
event permission is given.
G:\EDSI\F!LES\00I00\085011\RESOLUT\9V6160.DOC
c. State the name, address, and the names and addresses of all the
officers, of the organization submitting the request. Indicate the
legal form of organization, and the name and address of the contact
person who shall be responsible for the flag's condition and
presentation.
d. State the period for which the flag is requested to be flown.
e. The desired location. (Locations shall be determined by the
City based on availability and ability to display the flag without
infringing on the display by others, including the City itself).
2. City Staff Review
The City staff will review the request and make a recommendation to the
City Commission based on the following:
a. Appropriateness of the organization and the flag. Flags which
support illegal activities, take political positions or support
candidates for any office, advocate against City policies or involve
obscene language, symbols or activities are prohibited.
b. The number of other flags already approved.
c. The availability of locations.
d. The time period during which the flag shall be permitted to be
flown on City property. No permission shall be given for
permanent flag placement. In the event an applicant desires a
longer time period than that granted, renewal applications shall be
submitted at least 30 days before the end of the initial period in
order to afford the City Commission opportunity to decide on the
extension.
D. City Commission Consideration and Decision.
The City Commission will consider the request after the review and
recommendation from City staff. The City Commission will consider the
determination of City staff when making their decision as well as any
other criteria they deem appropriate, to the extent that the criteria are
legally and constitutionally supportable. In the event a request is denied by
the Commission, a decision with the reasons set forth shall be adopted at
the time of the refusal, and set forth in the minutes in writing as part of the
motion (or resolution) adopted.
G:\EDSI\FILES\00100\085011 \RESOLU1\9V6 l 60.DOC
E. Grant by City Commission; Location and Term
Any request that is approved will be accomplished by City Commission
resolution that will include the specific location(s) where the flag(s) can be flown
and the time period for which the request is granted.
Policy regarding term of the permission: No permanent permission shall be
granted. The City's policy is to favor shorter term flying periods to accommodate
a reasonable number of requests and avoid unintended endorsements which can
arise not only by the message of the flag itself, but also by the duration a flag is
flown other than flags of the City, County, State and the United States.
Applicants are encouraged to apply for periods of display which are shorter, as
stated above. However, the Commission will consider periods up to one year for
flags which represent long term or continuing organizations, activities or public
(non-political) concerns. More typical will be permission granted for periods of a
week to thirty days.
The term of any permission granted shall be subject to the City's determination to
fly another flag in the location of and instead of the permitted flag in a time of
emergency or of critical public concern.
F. Flag Maintenance
It shall be the responsibility of the requesting organization to maintain the flag(s)
in good repair. Failure to do so will result in revocation of the permission to fly
the flag(s). The City shall afford access to the flag for repair and maintenance.
G. Revocation
The City Commission shall have the sole discretion to revoke the permission to
fly a flag permitted under this policy for whatever reasons they deem appropriate
and which are legally and constitutionally supportable. Claims made by any
person to whom permission has been granted concerning the import of the City's
permission to fly a flag which are not intended or acceptable to the City shall be,
without limitation, grounds for revocation without notice.
Any revocation of permission before the term permitted has expired shall be
accomplished by the City removing the flag and notifying the applicant to come
to the City's offices to retrieve the flag or flags removed. In such case the City
shall indicate by written memorandum delivered to the applicant the reason(s) for
revocation.
G:IEDSIIFILES\0010010850 l l \RESOLUT\9V6160.DOC
2001-139(b)
CERTIFICATION
This policy was adopted at a regular meeting of the City Commission, held on November
27, 2001. The meeting was properly held and noticed pursuant to the Open Meetings Act
of the State of Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
By~,~~~a~il=~~--K-9-'-'d~in~~-er-,-C~rt~~-C-le-r4~~P!~·----
Date: August 12, 2003
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Healthcare Provider - Retirees Over 65
SUMMARY OF REQUEST: For several years the city has offered retirees over
age 65 the option of receiving a $50.00 per month stipend towards the cost of a
commercially-provided Medigap policy. This was done in response to complaints
that the city's regular healthcare coverage for retirees over 65 was inadequate. The
City works with a third party service provider (MagnaCare) to find the best Medigap
policy values for retirees and, also, to coordinate premium billings. MagnaCare is
recommending that the current provider (Oxford Life) be replaced with Hartford Life
Insurance effective October 1, 2003 (see attached). The documents the city needs
to sign to effect this change have been reviewed by the City Attorney.
FINANCIAL IMPACT: No direct financial impact on the city. The monthly stipend
remains $50.00.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize Mayor and Clerk to sign the
necessary documents.
COMMITTEE RECOMMENDATION: The Committee of the Whole will meet
th
Monday, August 11 to further discuss this item.
9/18/97
IMPORTANT
OXFORD LIFE INSURANCE COMPANY
Last October, Oxford Life Insurance Company defaulted on a $100,000,000 loan and
their parent company AMERCO could not assist them with the payments. Since then
Oxfords rating has been lowered from A- (Excellent) to C+ (Marginal) and AMERCO
has filed Chapter 11 Bankruptcy.
Although Oxford states your coverage is safe and medical bills will be paid, MagnaCare
Group feels it is in your best interest to use another healthcare provider to avoid the
possibility of some excessive rate increases and/or delays in claim payments.
INDIVIDUAL MEDICARE SUPPLEMENT
Several retirees have individual Medicare Supplement Plans with different carriers that
have been experiencing some very large increase the past few years. Soon the carriers
will be announcing their 2004 increases, which we expect will exceed 15%. Again,
MagnaCare Group thinks it is in the best interest of moving those retirees into a true
group retiree medical plan.
HARTFORD LIFE INSURANCE COMPANY
MagnaCare Group has secured coverage for you with Hartford Life Insurance Company,
a leader in Senior Medical with an A++ (Superior) rating.
You have been automatically enrolled with Hartford. You will receive your new ID Card
and Certificate of Coverage prior to the effective date. On the reverse side of this letter is
a more detailed explanation about premium or procedural changes and your effective
date.
We will use one plan design for all retirees. All Medicare Approved expenses and excess
charges will be covered by the Plan (equivalent to Plan F). Then starting January I, 2004
you will be responsible to pay the $100 Medicare Part B deductible each year. This is not
a standard Medicare Supplement Plan Design. We made this change because we were
able to get a greater premium discount than the $100 deductible.
MAGNACARE GROUP INC.
MagnaCare Group will continue to administer your retiree health plan. If you have any
questions, please call our offices at 1-800-278-2323.
EFFECTIVE DATE
Your coverage with Hartford becomes effective October 1, 2003.
You will receive your ID Card and Certificate of Coverage prior to October 1, 2003.
Please remember to show you doctor your new Hartford Identification Card after October
1'\ Until then continue to use your Oxford ID Card.
With any conversion claim problems can occur especially if your doctor does not fill out
your claim form correctly. If you have any questions or encounter any problems please
call MagnaCare Group at 1-800-278-2323 and their customer service representatives will
assist you.
PRESCRIPTION DRUGS
If you have prescription drug coverage their will be no changes in plan design or
premiums at this time.
MONTHLY PREMIUM
Effective October 1, 2003 your new rate will be:
65-69 $114.88
70-74 $128.11
75-79 $146.95
80-84 $155.04
85+ $166.66
Rates will be increased 10.5% January 1, 2004 and will be reviewed every January 1st
thereafter.
65-69 $126.94
70-74 $141.56
75-79 $162.38
80-84 $171.32
85+ $184.16
PARMENTER O'TOOLE
Allomeys at law
John M. Briggs, Ill
Michael L. Rolf Scott R. Sewick
George W. Johnson 175 West Apple Avenue • P.O. Box 786 • Muskegon, Michigan 49443-0786 Scott M. Knowlton
W. Brad Groom Jeffery A. Jacobson
Eric R. Gielow Phone 231.722.1621 • Fax 231.722.7866 or 231 .728.2206 Dawn M. Goodwin
John C. Schrier www.Parmenterlaw.com Thad N. McCollum
Chrislopher L. Kelly
O/Ccu11scl
Linda S. Kaare
Thomas J. O'Toole
James R. Scheuerle
Eric J. Faun
Philip M. Steffan
Michael M. Knowlton
William J. Meler
Keith L. McEvoy George A. Parmenter, 1903-1993
Anna Urick Duggins
August 7, 2003
Timothy J. Paul
City of Muskegon
933 TeITace
Muskegon,11!49443-0536
Re: Retiree Health Plan
Dear Mr. Paul:
We have reviewed the revised documents that you forwarded regarding the City of Muskegon's
proposed retiree health plan. According to your discussions with the policy representative, the
"Participation Agreement" that the City was initially requested to sign is no longer required.
Therefore, we reviewed the "Acceptance Form" which was revise to remove various references
to a "Trust Agreement".
The only revision we suggest to the Acceptance Form is to add an additional line on the
signature page so that the Mayor and Clerk for the City may both sign the documents.
Othe1wise, the document is satisfactory to cover the terms proposed to you by the policy
representative and should be submitted the City Council for their approval of the agreement. If
you have any questions, please contact me.
Jacobson
i ect: 31. 722.5405
], 722. 7866
Enclosures
G:\EDSI\FILES\00100\1 398\LTR\B25917.DOC
Commission Meeting Date: August 12, 2003
lD\
~- J/)
Date: July 24, 2003
'JrP
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Amendment to the "Policy for Acquisition and Disposition of
Residential Properties"
SUMMARY OF REQUEST:
Due to several situations that have arisen in the past few months regarding illegal
property splits due to foreclosure, staff has worked with the City Attorney to develop
language to address this issue. The language is proposed to be an amendment to the
"Policy for Acquisition and Disposition of Residential Properties".
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the amendment to the policy and have the Mayor and City Clerk sign the
resolution.
COMMITTEE RECOMMENDATION:
The Land Reutilization Committee and Legislative Policy Committee recommend
approval of the request.
7/24/2003
RESOLUTIONNO. 2003- 61 (e)
MUSKEGON CITY COMMISSION
RESOLUTION TO ADOPT AN AMENDMENT TO THE "POLICY AND PROCEDURE FOR
ACQUISITION AND DISPOSITION OF RESIDENTIAL PROPERTIES"
WHEREAS, the City of Muskegon owns many unbuildable lots and wishes to sell these lots to
adjoining property owners to expand their yards, and;
WHEREAS, foreclosure or tax reversion may cause an illegal lot split to occur, and;
WHEREAS, the City of Muskegon wishes to regain ownership of these unbuildable lots should
foreclosure or tax reversion occur;
NOW, THEREFORE, BE IT RESOLVED that the City Commission hereby adopts the
following policy amendment to assure reversion of these lots to the City of Muskegon:
(to be added under II., B)
4. For buildable lots, deeds issued by the City will be conditional. A reverter
clause will be included to require the buyer to commence construction within
18 months of the date of purchase, or the property will revert to the City.
5. For non-buildable lots, the property shall be offered to adjoining property
owners only. The City Assessor will be requested to join the non-buildable
lot to the adjoining property and a single tax parcel identification number
be provided. A reverter clause will be included in the deed so that if the
buyer/adjoining property owner loses the adjoining property due to
foreclosure or non-payment of taxes, the non-buildable lot shall revel't to
the City. At the point in time when any lein covers both p"rcels or there are
no leins on eithel' parcel, the property ownel' may l'equest and the City shall
agl'ee to W{live and tel'minate the reverter clause.
Adopted this 12th day of August, 2003.
Ayes: 7
Nays: 0
Absent: o
Gail A. Kundinger, MMC
City Clerk
O:\Planning\COMMON\Property\Policy and Procedures\policy amendment 8- 12 -03 resolution.doc
CERTIFICATION
This resolution was adopted at a regular meeting of the City Commission, held on
August 12, 2003 The meeting was properly held and noticed pursuant to the Open
Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
'J.Oo3 ,
eflP\ p
Commission Meeting Date: August 12, 2003
Date: August 4, 2003
To: Honorable Mayor and City Commiss~ rs
From: Planning & Economic Development
RE: Vacation of a portion of McLaren St.
SUMMARY OF REQUEST:
Request for the vacation of a portion of McLaren St., north of Wesley Ave.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends vacation of the portion of McLaren St., with the conditions listed in
the first attached resolution, and to allow the Mayor and Clerk to execute the second
attached resolution once those conditions have been met.
COMMITTEE RECOMMENDATION:
The Planning Commission recommended the vacation, with the conditions listed in the
attached resolution . The vote was unanimous with T. Johnson and T. Harryman
absent.
-0
Staff Report [EXCERPT]
CITY OF MUSKEGON
PLANNING COMMISSION
SPECIAL MEETING
July 28, 2003
Case 2003-22: Request to vacate the 274 linear feet of McLaren St. north of Wesley Ave.,
by the Sterling Group (tabled).
UPDATE
Staff has been working with Sterling Group for the past several months on the possible vacation
of McLaren St., which was tabled by the Planning Commission at their June 25 Special Meeting.
A meeting was held on July 1. In attendance were the City Manager, Zoning Administrator,
City Engineer, Fire Marshal, City Attorney and a representative from the Sterling Group. The
discussion centered on the issues brought up at the special Planning Commission meeting.
It was determined that the only portion of street that is absolutely necessary to be vacated is the
portion of McLaren, which is south of the proposed Sumner St. extension. Sterling has provided
a legal description for that portion of street. The vacation request will only address that
description.
Sterling absolutely requires that the City Commission vacates the portion of street before July
31st or they will not pursue the project. Staff and the Planning Commission have been hesitant to
vacate a street without some form of guarantee that the project will proceed. A letter was
prepared by City Attorney to Sterling Group giving two different options for vacating the street
(see attached letter). After further discussion between Sterling Group and the City Attorney, it
was determined that Option 2 was the prefe1Ted option, with two changes. These changes are
minor and help protect the City's concerns. The changes are shown in italics in the attached
letter.
Staff recommends approval of this request, provided that all the conditions listed in the proposed
motion below are met.
MOTION FOR CONSIDERATION
I move that the vacation of a portion of McLaren St., as described in the attached legal
description, be recommended to the City Commission for (approval/denial) based on the
following conditions (only if approved):
1. The Planned Unit Development for the proposed development by the Sterling Group is
approved by the City Commission.
2. All units in the proposed development will be fire suppressed, as agreed to by the Sterling
Group in their 7/9/03 letter.
City of Muskegon Planning Commission - 7/28/03 1
3. The fire hydrants must comply with International Fire Code Appendix C for placement and
amount.
4. The effective date of the vacation will be when the following are completed (as agreed to by
the Sterling Group in their 7/9/03 letter):
a. The pulling of building permits and issuance of certificates of occupancy.
b. Plans are presented and approved by City staff for the construction of the proposed
Sumner Street and reconstruction of McLaren Street.
c. Posting a bond in the amount determined by the City to cover the cost of construction of
proposed Sumner Street and reconstruction of McLaren Street north of proposed Sumner.
5. This vacation will reserve unto the City the right to retain and maintain all utilities in the
vacated street.
6. A new 8" water main will be installed between Alva St. and the east line of the property
owned by Findlay Group.
7. A new 8" water main will be constructed in McLaren St. from the newly proposed street to
the nmth limits of the Findlay Group property.
8. A new street will be constructed and dedicated for public use or an easement provided for the
would-be constructed water main.
9. The applicant will pmticipate in the construction of the 8" water main from the north limits
of the Findlay Group property to Jackson St. in the amount not more than $30,000 with the
rest of the Cost by the City.
10. The City will not maintain a sewer lift station should the proposed project require a station by
design. Maintenance of a sewer lift station either individually or collectively will be the
responsibility of the property owner.
City of Muskegon Planning Commission-7/28/03 2
PARMENTER OTOOLE
Attorneys at Law
175 West Apple Avenue • P.O. Box 786 • Muskegon, Michigan 49443-0786
Phone 231.722.1621 • Fax 231.722.7866or231.728.2206
www.Parmenterlaw.com
July 2, 2003
VIA E-MAIL AND FIRST CLASS
Jeffrey Boss, P.E.
Sterling Development, LLC
3900 Edison Lakes Parkway
Suite 201
PO Box2008
Mishawaka, IN 46546-2008
Dear Mr. Boss:
It was a pleasure meeting you yesterday and discussing your project. I believe all of us, both city
staff and Sterling Development LLC, fully understand the concerns with the vacation of
McLaren Street, South of the proposed Sumner Street. As such, a recitation of concerns may not
be necessary. Sterling Development does not presently own the property subject to this
discussion. I recognize that some of the obligations may be performed by an entity other than the
Sterling Development LLC. In order to accomplish the desires of Sterling Development, LLC,
while protecting the City if development does not ultimately occur, two different options appear
viable:
Option One
The City and Sterling Development, LLC would agree as follows:
1. City would immediately vacate McLaren Street South of the proposed Sumner Street.
The partial vacation of McLaren Street South of the proposed Sumner Street will reserve
unto the City the right to retain and maintain all utilities in the vacated street;
2. A deed would be prepared and executed from the owner of the property, which I believe
to be Sterling Development, LLC to the City of Muskegon for partially vacated portion of
McLaren Street South of the proposed Sumner Street. The deed would be held in escrow
by an appropriate title company. If construction of the development occurs and the
proposed Sumner Street is open to traffic by December 31, 2004, the deed would be
returned to the Sterling Development, LL. If the work is not completed and/or Sumner
Street is not open for use by December 31, 2004 then the deed would be recorded;
City of Muskegon Planning Commission - 7/28/03 3
3. No physical change will be made to McLaren Street until Sterling Development, LLC
posts a bond, or other alternative acceptable form of financial assurance, to cover the cost
of construction of proposed Sumner Street and reconstrnction of McLaren Street North of
proposed Sumner.
Option Two
The City and Sterling Development, LLC would agree as follows:
I. City would immediately commit to vacate McLaren Street south of the proposed Sumner
Street. The effective date of the vacation will be when the following are completed:
a) the pulling of building permits and issuance of certificates of occupancy;
b) plans are presented and approved by City staff for the construction of the
proposed Sumner Street and reconstruction of McLaren Street;
c) posting a bond or irrevocable letter of credit in the amount determined by
the City to cover the cost of construction of proposed Sumner Street and
reconstruction of McLaren Street Nmih of proposed Sumner.
2. The vacation of McLaren Street south of the proposed Sumner Street will reserve unto the
City the right to retain and maintain all utilities in the vacated street.
Recognizing the concerns of the City, if there are any other options that should be considered,
please feel free to communicate such.
Very truly yours,
John C. Schrier
Direct: 231.722.5401
Fax: 231. 728.2206
E-Mail Address: jcs@parmenterlaw.com
c: Bryon Mazade
Deb Steenhagen
Mohammed Al-Shatel
Major Metcalf
City of Muskegon Planning Commission - 7/28/03 4
CITY OF MUSKEGON
RESOLUTION# 2003-61 ( f)
RESOLUTION TO VACATE A PORTION OF A PUBLIC ALLEY UPON FULFILLMENT OF CERTAIN
CONDITIONS
WHEREAS, a petition has been received to vacate McLaren Street south of the proposed Sumner Avenue, City
of Muskegon; and,
WHEREAS, the Planning Commission held a public hearing on Monday July 28, 2003, to consider the petition,
and, subsequently, conditionally recommended the vacation; and,
WHEREAS, due notice had been given of said hearing, as well as the August 12, 2003, City Commission
meeting to consider the recommendation of the Planning Commission.
NOW, THEREFORE, BE IT RESOLVED, that the City Commission deems ii advisable and will grant a vacation
of McLaren Street south of the proposed Sumner Avenue upon satisfaction of the following conditions:
1) The pulling of building permits and issuance of certificates of occupancy for 40 units at
The Village of Jackson Hill, at McLaren and Wesley Avenue;
2) Plans are presented and approved by city staff for the construction of the proposed
Sumner Avenue and reconstruction of McLaren Street;
3) Posting a bond in the amount determined by the City to cover the cost of construction
of proposed Sumner Avenue and reconstruction of McLaren Street North of proposed
Sumner.
BE IT FURTHER RESOLVED, that upon satisfaction of the conditions, the Mayor and Clerk shall execute the
attached Resolution vacating McLaren Street south of proposed Sumner Avenue.
BE IT FURTHER RESOLVED, that such vacation shall not operate so as to conflict with fire access or the utility
rights heretofore acquired by the City or by any public service utility in the City of Muskegon, operating in, over,
and upon said portion of alley hereby vacated, and it is hereby expressly declared that such rights shall remain
in full force and effect.
BE IT FURTHER RESOLVED, that after any maintenance and repair by the City, the City shall restore the
disturbed area to the grade and paving in existence at the time of vacation. The City shall not be responsible to
replace special planting, landscaping, fences or any structure. No structure shall be placed in the easement
which, in the sole judgment of the City, will interfere with the repair or maintenance of utilities in the easement,
public or private.
Adopted this 12th day of August, 2003.
Ayes: Spataro, Warmington, Buie, Gawron, Larson,
Schweifler, Shepherd
Nays: None
Absent: None
CERTIFICATION
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 August 12,
2003.
Gail A Kundingar, MMC
Clerk, City of Muskegon
PREPARED BY:
John C. Schrier
Parmenter O'Toole
175 W. Apple Avenue
P.O. Box 786
Muskegon, Ml 49443-0786
CITY OF MUSKEGON
RESOLUTION# 2003-61 ( f)
RESOLUTION TO VACATE A PORTION OF A PUBLIC ALLEY UPON FULFILLMENT OF CERTAIN
CONDITIONS
WHEREAS, a petition has been received to vacate McLaren Street south of the proposed Sumner Avenue, City
of Muskegon; and,
WHEREAS, the Planning Commission held a public hearing on Monday July 28, 2003, to consider the petition,
and, subsequently, recommended the vacation; and,
WHEREAS, due notice had been given of said hearing, as well as the August 12, 2003, City Commission
meeting to consider the recommendation of the Planning Commission, and
WHEREAS, the City Commission indicated a willingness to vacate McLaren Street south of proposed Sumner
Avenue upon satisfaction of certain conditions; and
WHEREAS, the following conditions have been satisfied:
1) The pulling of building permits and issuance of certificates of occupancy for 40 units at
The Village of Jackson Hill, located at McLaren Street and
Wesley Avenue;
2) Plans are presented and approved by city staff for the construction of the proposed
Sumner Avenue and reconstruction of McLaren Street;
3) Posting a bond in the amount determined by the City to cover the cost of construction
of proposed Sumner Avenue and reconstruction of McLaren Street North of proposed
Sumner.
NOW, THEREFORE, BE IT RESOLVED, that the City Commission deems it advisable to vacate and
discontinue said portion of McLaren Street south of the proposed Sumner Avenue legally described as:
That portion of McLaren St. (33 feet in width) described as: BEGINNING at the intersection of the North right-of-
way line of Wesley Avenue and the west right of way line of McLaren Street; thence north 151.39 feet along the
West right-of-way line of McLaren Street; thence East to the East right-of-way of McLaren Street; thence South
151 .48 feet along the East right-of-way line of McLaren Street to the North right-of-way line of Wesley Avenue;
thence West to the point of beginning; all in Lot 10, Block 20 of the Revised Plat of 1903 of the City of
Muskegon. Containing 0.1147 acres of land.
BE IT FURTHER RESOLVED, that the City Commission does hereby declare the alley vacated and
discontinued, provided, however, that this action on the part of the City Commission shall not operate so as to
conflict with fire access or the utility rights heretofore acquired by the City or by any public service utility in the
City of Muskegon, operating in, over, and upon said portion of alley hereby vacated, and it is hereby expressly
declared that such rights shall remain in full force and effect.
BE IT FURTHER RESOLVED, that after any maintenance and repair by the City, the City shall restore the
disturbed area to the grade and paving in existence at the time of vacation. The City shall not be responsible to
replace special planting, landscaping, fences or any structure. No structure shall be placed in the easement
which, in the sole judgment of the City, will interfere with the repair or maintenance of utilities in the easement,
public or private.
Effective this ...!1._ day of_, A)ill_U st_ _, 2003.
By-------------
Stephen J. Warmington, Mayor
and _ _ _ _ _ _ _ _ _ _ _ __
Gail A. Kundinger, MMC, Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution authorized by the City
Commission of the City of Muskegon, County of Muskegon, Michigan, at a regular meeting held on August 12,
2003.
Gail A. Kundinger, MMC
Clerk, City of Muskegon
PREPARED BY:
John C. Schrier
Parmenter O'Toole
175 W. Apple Avenue
P.O. Box786
Muskegon, Ml 49443-0786
;,co?,- le, I - (~j
DATE: August 5, 2003
TO: Honorable Mayor and City Commissioners
FROM: Robert B. Grabinski, Director of Inspection Services
RE: Consent Agreement Policy
SUMMARY OF REQUEST: This is to request the city commission approve the attached
Consent Agreement Policy. This policy will allow staff to enter into a consent agreement
with a property owner without taking the agreement to the commission for approval.
This will be utilized by staff in an effort to expedite the approval allowing the property
owner to begin the repairs ordered.
STAFF RECOMMENDATION: To approve and authorize the Mayor and Clerk to sign
the attached policy.
CITY COMMISSION RECOMMENDATION: The commission will consider tJµs item
at its meeiing held on Tuesday, August 12, 2003.
2003- 61 (g)
i11Jil
CONSENT AGREEMENT POLICY
In an effort to expedite routine consent agreements in cases where the agreement does not
arrive at the time appropriate for commission approval the following policy is
implemented. This will allow the property owner to begin repairs and not have a wait of
an additional two weeks when the matter is a routine and customary consent agreement.
It is intended that this policy is a guideline allowing for discretion by the Director of
Inspections, City Manager, and City Attorney in approving said agreement.
The following guidelines are to be met prior to granting approval without commission
action:
1. There is a specific date by which the property owner and/or the contractors must
pull all necessary permits. This date is between 10-14 working days of the
documents approval with a specific date listed; i.e. "on or before July 1, 2003 at
5:00 PM".
2. A specific date where all work must be completed, inspected, and approved. This
date is arrived at after a review of the deficiencies, the amount of work required,
and the difficulty of repairs. Other factors may include consideration of past
scheduling problems and/or discussions held with the property owner. It is
intended that the time given is adequate to complete the requirements, but not
allow the repairs to linger without resolution.
3. The property owner is required to escrow $5,000.00 with the City of Muskegon.
This money is to be used for demolition if the consent agreement terms are not
met.
4. That all fees, fines, taxes, and other charges owed to the City of Muskegon are
paid on or before the "permit date" and prior to issuance of the permit.
5. That this agreement is the final order of the court for this case.
6. If the basic terms listed above are met the City Commission authorizes the City
Manager and the Director of Inspections with assistance from the City Attorney to
enter into the agreement.
7. Any consent agreements approved in this manner will be presented to the
commission at their next meeting as part of the city manager's report.
8. Deviations from the basic format or staff concerns will result in the consent
agreement being placed on the closed session agenda at the next regularly
scheduled meeting of the Muskegon City Commission.
Adopted: August 12, 2003
Last Update:
Approved By:
CITY OF MUSKEGON
RESOLUTION# 2003-61 ( f)
~J:ET
RESOLUTION TO VACATE A PORTION OF A PUBLIC:~ UPON FULFILLMENT OF CERTAIN
CONDITIONS
WHEREAS, a petition has been received to vacate McLaren Street south of the proposed Sumner Avenue, City
of Muskegon; and,
WHEREAS, the Planning Commission held a public hearing on Monday July 28, 2003, to consider the petition,
and, subsequently, recommended the vacation; and,
WHEREAS, due notice had been given of said hearing, as well as the August 12, 2003, City Commission
meeting to consider the recommendation of the Planning Commission, and
WHEREAS, the City Commission indicated a willingness to vacate McLaren Street south of proposed Sumner
Avenue upon satisfaction of certain conditions; and
WHEREAS, the following conditions have been satisfied:
1) The pulling of building permits and issuance of certificates of occupancy for 40 units at
The Village of Jackson Hill, located at McLaren Street and
Wesley Avenue;
2) Plans are presented and approved by city staff for the construction of the proposed
Sumner Avenue and reconstruction of McLaren Street;
3) Posting a bond in the amount determined by the City to cover the cost of construction
of proposed Sumner Avenue and reconstruction of McLaren Street North of proposed
Sumner.
NOW, THEREFORE, BE IT RESOLVED, that the City Commission deems it advisable to vacate and
discontinue said portion of McLaren Street south of the proposed Sumner Avenue legally described as:
That portion of McLaren St. (33 feet in width) described as: BEGINNING at the intersection of the North right-of-
way line of Wesley Avenue and the west right of way line of McLaren Street; thence north 151.39 feet along the
West right-of-way line of McLaren Street; thence East to the East right-of-way of McLaren Street; thence South
151.48 feet along the East right-of-way line of McLaren Street to the North right-of-way line of Wesley Avenue;
thence West to the point of beginning; all in Lot 10, Block 20 of the Revised Plat of 1903 of the City of
Muskegon. Containing 0.1147 acres of land.
BE IT FURTHER RESOLVED, that the City Commission does hereby declare the alley vacated and
discontinued, provided, however, that this action on the part of the City Commission shall not operate so as to
conflict with fire access or the utility rights heretofore acquired by the City or by any public service utility in the
City of Muskegon, operating in, over, and upon said portion of alley hereby vacated, and it is hereby expressly
declared that such rights shall remain in full force and effect.
BE IT FURTHER RESOLVED, that after any maintenance and repair by the City, the City shall restore the
disturbed area to the grade and paving in existence at the time of vacation. The City shall not be responsible to
replace special planting, landscaping, fences or any structure. No structure shall be placed in the easement
which, in the sole judgment of the City, will interfere with the repair or maintenance of utilities in the easement,
public or private.
Effective this£(~ day of #Jr,J 4()(/~
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution authorized by the City
Commission of the City of Muskegon, County of Muskegon, Michigan, at a regular meeting held on August 12,
2003. . I
L O-~~·
Gail A Kundinger, MMC
Clerk, City of Muskegon
PREPARED BY:
John C. Schrier
Parmenter O'Toole
175 W. Apple Avenue
P.O. Box786
Muskegon, Ml 49443-0786
.lD\ j)
Commission Meeting Date: August 12, 2003
Date: August 5, 2003
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Approval of 2003 - 2004 Subrecipient and
Community Housing Development Organization
(CHDO) Agreements
SUMMARY OF REQUEST: To direct the Mayor and City Clerk to sign
all of the 2003-2004 approved agreements for the City's subrecipients
and CHDO's. The City Commission approved the funding for each of
the nonprofits last spring during the City's Consolidated Planning
process.
After the Mayor and Clerk sign the contracts, the CNS office will retain
one copy of our files and a copy will be supplied to the appropriate
nonprofit for their records.
FINANCIAL IMPACT: Funding will be allocated from the 2003-2004
CDBG and HOME programs.
BUDGET ACTION REQUIRED: None. The City Commission made
budgeting decision last Spring.
STAFF RECOMMENDATION: To direct Mayor and Clerk to sign
agreements.
COMMITTEE RECOMMENDATION: None needed.
CHDO AGREEMENT - 2003 - 2004
This CHDO AGREEMENT, made this 1st day of June, 2003, by and between the City of
Muskegon, Michigan, A Municipal Corporation, (hereinafter "Recipient") _ _ _ _ _ __
whose office is located at _ _ _ _ _ _ _ _ _, (hereinafter "CHDO")
WITNESS ETH:
WHEREAS, CHDO will receive Community Development Block Grant
(CDBG/HOME) funds from the Recipient, in the amount of $____, to be used for the
following:
WHEREAS, the parties wish to set fmth the conditions on which the funds are to be
made available;
NOW THEREFORE, in consideration of the covenants herein contained, the parties do
mutually agree as follow:
I. GENERAL CONDITIONS
1. Services to be delivered are eligible activities as defined in Section 92.205
and 92.206 of HOME Administrative Regulations (CFR 92)
2. The CHDO certifies that the service is either:
a. a new service or
b. a quantifiable increase in the level of a service above the level which
has been provided by or in behalf of the applicant from local revenue
sources or State funds received by the applicant in the twelve (12)
calendar months prior to submission of the proposal, or
c. a continuation of a service that would othe1wise be decreased due to
events beyond the control of the CHDO.
3. The CHDO is incorporated as a non-profit organization in good standing
under Michigan Law.
4. The CHDO WatTants that a current copy of its charter (if applicable),
Articles of Incorporation and By-Laws are on file with the department of
Community and Neighborhood Services. The CHDO shall also keep a
current list of its board members, its officers and their addresses on file
with the Community and Neighborhood Services department.
1
5. By resolution, the CHDO's Board of Directors shall certify to the City a
responsible contact person, who shall be considered their representative in
all matters relating to this Agreement for communication and
administrative purposes.
Until further written notice from the CHDO, said contact person shall be:
II. PERSONNEL
1. The CHDO shall maintain direct control of all personnel employed by it and to
provide the necessary training and supervision of its employees in carrying out
contracted programs. However, implementation of the "project" must meet the
requirement and approval of Community and Neighborhood Services.
2. In all work made possible by or resulting from this agreement, affirmative action
will be taken to insure that low income persons, particularly minorities and
women, are given maximum opportunity for training and employment; and that
minority business concerns located in the area, to the greatest extent feasible, are
awarded sub-contracts when permitted by this Agreement (Section 3, CDP 135).
3. Incorporated by reference are Title VI of the Civil Rights Act of 1964, Executive
Order 11246 and 0MB Circular A-102, Attachment O which relates to equal
opportunity. Copies are available at the Community Development Office.
4. The CHDO (including its membership body, Board of Directors, committees, and
paid and other volunteer staff) agrees that it will comply with City policies and
procedures concerning equal opportunity, affirmative action, and non-
discrimination in employment practices because of age, religion, race, color,
national origin, sex, education association, marital status or physical limitation.
III. SCOPE OF SERVICES
The CHDO shall provide the services specified in Attachment "A", Scope of Services, in
exchange for financial compensation detailed in Attachment "B".
2
IV. COMPENSATION AND METHOD OF PAYMENT
I. The maximum amount which the CHDO may receive pursuant to this Agreement
is$_ _ __
2. The CHDO warrants that its Board of Directors has approved a budget request to
provide services detailed in this Agreement (attachment "B''). The budget total of
$_____ , shall remain unchanged during the year unless amended as
permitted in this Agreement. The CHDO may not, without City Commission
approval, make transfer between categories not exceeding 10% of the overall
budget total, or $2,000.00, or whichever is greater.
3. Upon approval of CHDO's request for payment, the CHDO shall be reimbursed
for expenses within a maximum of twenty (20 days.)
4. To receive payments, the CHDO must complete and submit the following:
a. Request for Payment
b. Detailed Invoice for Actual Expenditures
c. Quarterly Performance Reports
5. All program income, received by the CHDO, (if any) shall be disbursed by the
CHDO prior to request for payments from the Recipient. Program income
resulting from the project will be handled in accordance with the requirements of
24 CPR 570.503 applicable to CDBG Recipients and 24 CPR 92.503 for HOME
CHDO's. All program income derived from the HOME activities by CHDO must
be reinvested to the recipient (City) to the HOME Investment Trust Fund.
6. If at the end of the term of this Agreement there are unexpended portions of the
contract amount set forth in this Agreement, the City may recapture said amount
for reallocation to other purposes.
7. If CHDO fails to comply with terms specified in this Agreement or refused to
accept and meet conditions imposed by the Department of Housing and Urban
Development (HUD), the Recipient may immediately terminate payments to the
CHDO and recover any funds it has advanced. In the event of the inability of
CHDO to perfotm or complete the project, or termination of the Agreement by the
City Commission, Recipient will pay only invoices for work performed or
satisfactorily completed.
8. The Recipient shall not be held liable for expenditures or obligations incurred in
excess of the authorized total budget, nor shall the City be held liable for
expenditures or obligations for ineligible cost pursuant to Section 570.200 and
570.201 of the Housing and Community Development Act. And 92.206, 92.207
and 92.208 ofNational Affordable Housing Act of 1990.
3
IV. FINANCING AUDITS AND INSPECTIONS
1. The CHDO shall document the costs incurred with CDBG/HOME funds with the
support of properly executed payrolls, time records, invoices, contracts, vouchers,
receipts, or other official documentation that shows in proper detail the nature and
propriety of charges. All such documents must be clearly identifiable and readily
assessable during the term of the Agreement to City and HUD officials or their
authorized representative for audit and examination as often as the City may deem
necessary. Additionally, the CHDO agrees to securely maintain such documents
for a period of three (3) years after termination of this Agreement.
2. The CHDO is to act within thirty (30) days after the signing of this Agreement to
establish a procedure for its accounting operation that will not be inconsistent
with Federal Management Circular A-102, Attachment G, and can be certified
auditable by the Accountant for the Community Development Department. The
auditable procedure shall insure that monies provided by the Community
Development Block Grant HOME program can be separately traced from other
funds of the CHDO.
3. The Recipient shall provide the CHDO with a copy of any account requirements
established by HUD, and the CHDO shall thenceforth be responsible for
compliance with such requirements.
4. Program Income earned by the Service Agency during the grant period shall be
retained by the CHDO, and in accordance with 0MB Circulars A-102, A-110 and
A-122 shall be:
a. Added to funds committed to the project by the City and the CHDO to be used
to further eligible program objectives as defined in the scope of services of
this Agreement (see Attachment A).
b. Deduct from the total project costs for the purposes of determining the net
costs on which the Federal (CDBG / HOME) share of the cost will be based.
5. No CDBG I CHDO funds shall be disbursed under this Agreement by the CHDO
or any others contracted by the CHDO unless those contracted are in compliance
with City and HUD requirements with regard to fiscal matter and civil rights to
the extent such requirements are applicable. The CHDO shall provide the
Recipient with a copy of such contracts.
6. The CHDO shall provide proof of Bonding Insurance for all employees who
handle funds.
4
V. INSURANCE COVERAGE
The CHDO shall indemnify, defend, and hold the Recipient, its officers, and the
employees harmless with respect to any damage claim arising out of activities specified
by this Agreement. This CHDO shall maintain for the entire period of this Agreement a
valid policy of liability insurance naming the City of Muskegon (Recipient) as an insured
paity with limits of not less than $300,000 per occurrence. The CHDO shall also
maintain coverage during the Agreement period for Workers' Compensation as required
by law. The CHDO shall submit proof of insurance and amount of coverage to the
Community Development office prior to receiving any funds.
VI. REPORTS, MONITORING AND EVALUATION
1. The CHDO agrees to cooperate fully with the Community and Neighborhood
Services office, City and HUD officials, Citizen Committees, or any other
individuals appointed by City Commission to evaluate and monitor the
requirements and performance of programs financed with CDBG HOME funds.
The CHDO agrees to provide to the same parties listed information and reports,
oral or written, as may reasonably be required or requested during the te1m of this
Agreement on mattes relating to prograin activities, performance, or contract
compliance.
2. The CHDO agrees to complete and submit to the Community and Neighborhood
Services Office in a timely maimer a Quarterly Performance Report.
The report forms are to be provided by the City. The CHDO agrees to collect and make
available to the Community and Neighborhood Services Department the following information
on its clients or prograin participants:
a. Street (only) address of the client: (inside or outside City);
b. Month and year of initial services;
c. Number of services units rendered to each client served under this agreement;
d. Age and sex of the client or participant;
e. Whether the client or participant is the head of household;
f. Whether client or participant is a member of a minority group (which group);
g. Fainily income by fainily size (which will be indicated by checking an income
range category);
h. Whether client or participant head of household is handicapped;
5
The information is to be collected on a "Client Card" or tabulation sheets
provided by the City. The form will state that the client/patticipant information
being collected is required in order for the CHDO to receive HOME funds from
the City of Muskegon. Client information will be submitted quarterly with the
Performance Repmts.
Alternate systems of collecting data required in this section can be developed in
consultation with the Community and Neighborhood Services Office. The
Recipient retains the final right to approve any waiver of, or amendment to, this
reporting requirement.
VII. CONTRACT AMENDMENT
That except as expressly provided elsewhere in this Agreement, any modifications or
amendments to this Agreement may be made by mutual Agreement of the CHDO and the
City Commission. It is expressly understood that this Agreement is subject to HUD
HOME funding regulations. Should HUD act to make changes in regulations or suspend
or terminate funding, such actions shall automatically amend this Agreement, if
applicable.
VIII. ASSIGNABILTIY
The CHDO shall not assign or transfer any interest in this Agreement without consent of
the City Commission.
IX. POLITICAL ACTIVITIES
None of the funds, materials, prope1ty or services provided directly or indirectly under
this Agreement shall be used for any partisan political activities, or to further the election
or defeat of any candidate for office.
X. CONFLICT OF INTEREST
No employee, officer or agent of the Recipient shall participate in the award or
administration of this Agreement if a conflict of interest real or apparent, would be
involved, or any type of benefit financially, politically or asset wise. (i.e. obtain housing,
illegal obtaining of contracts, etc.) See CFR24.92.356 and CFR 570.611.
6
XI. CITY'S RIGHT TO ENFORCE
1. The Community and Neighborhood Services Department may unilaterally
suspend (on a temporary basis) or alter this Agreement, including the amount of
funds allocated, for failure to comply with the terms and conditions of this
Agreement or failure to comply with regulations for the U.S. Government, or
directives of the Muskegon City Commission, some examples of which follow:
a. Ineffective or improper use of the HOME funds:
b. Failure to submit complete and correct performance or financial reports;
e. Failure to provide services called for in the Scope of Services section within
the time frame stated: and
d. If for any reason, the program cannot be completed.
2. The City Commission may unilaterally terminate this Contract for failure to
comply with the terms and conditions of the Agreement, the regulations of the
U.S. government, or directives of the Muskegon City Commission.
3. The Community and Neighborhood Services Department office shall provide
reasonable notice to the CHDO before action is taken to suspend, alter or
terminate this Agreement. Such notice shall include the reasons for the
contemplated action and the CHDO shall be give a right to protest.
4. In the event this Agreement is terminated by the City Commission, the Ownership
of all documents, equipment and properties acquired by HOME or Program
Income funds shall revert to the Recipient with the decision for final disposition
being left to the City Commission. However, the CHDO shall receive just
compensation for any work satisfactorily completed prior to such termination.
XII. PURSUIT OF ADDITIONAL RESOURCES
The CHDO shall make bona fide efforts to secure funds and resources from other
sources. Further, the CHDO shall cooperate with the Community and Neighborhood
office, as requested, in its effmts to pursue additional or alternative funding. The CHDO
shall report these efforts as part of the required Quarterly Performance Report.
XIII. TIME PERFORMANCE AGREEMENT TERM
All services rendered hereunder shall be completed by May 31, 2004. This Agreement
automatically terminates at that time unless specifically extended by the City
Commission. All funds allocated which are unspent or encumbered for services under
this Agreement shall be repaid to the City within fifteen (15) days of this date.
7
XIV. OTHER
1. That it will comply with all requirements applicable to HUD Block Grant
Subrecipients set forth in the HOME Program Requirements contained in 24 Code
of Federal Regulation Part 570. Such requirements pe1tain to, but are not limited
to, compliance with 0MB Circular A-102, reports and information, audits and
inspection, unearned payment, non-discrimination, disposition of real property,
and miscellaneous grant administration requirements.
2. That should the CHDO utilize any portion of HOME funds for acquisition of
property or relocation of individuals, families, or businesses as a result of a
project involving federal financial assistance from HUD, as defined in regulations
at 24CFR Part 42.79, all acquisition and/or relocation shall conform to the
Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 (P.L. 91.646), and the regulations which implement the Act (24 CFR Prut
42).
3. That except with respect to the rehabilitation of residential use for less than eight
families, all contractors engaged under contracts in excess of $2000 for the
construction prosecution, completion or repair of any building or work financed in
whole or in part with assistance provided under this agreement, shall comply with
HUD requirements pertaining to such Contracts and the applicable requirements
of the regulations of the Department of Labor under 29 CFR Parts 2, 5, and 5a,
governing the payment of wages and the ratio of apprentices and trainees to
journeymen; provided, that if wage rates higher tan those required under such
regulations are imposed by State or local law, nothing hereunder is intended to
relieve the CHDO of its obligations, if any, to require payment of the higher rates.
The CHDO shall require to be inserted in full in all such contracts subject to such
regulations, provisions meeting the requirements of 29 CFR 5.5 and for such
contracts in excess of$10,000, 29n CFR 5a.3.
4. The CHDO agrees to abide by all other Federal requirements not highlighted in
this Agreement, but included in the regulations HOME Regulation available at the
Community and Neighborhood Services Department, or other regulations
subsequently supplied to the Subrecipeint.
5. That should the CHDO funding involve construction work, the CHDO
contractors(s) agree to allow access to the City or its representative for inspection
purposes.
8
6. Should the CHDO acquire any real or personal property with funds provided
under this Agreement, it will not dispose of such prope1ty through sale or
otherwise without written permission of Recipient. If property is disposed of
without written permission, the proceeds shall be returned to the Recipient, and
CHDO may be required to reimburse the Recipient for the Federal portion of
participation in the project, subject to requirements in the Office of Management
and Budget Circular A-102, Attachment N, Property Management Stands.
XV. CONTRACT CLOSEOUT
All contracts will be closed out in accordance with the procedures specified in 0MB
Circular A-102, Attachment L, and P01tions of 0MB Circulars A-110 and A-122
applicable to non-profit organizations.
In Witness Whereof, the parties hereto have caused this contract to be executed the day and year
above written.
Signed In the Presence Of: CITY OF MUSKEGON, MICHIGAN
A Municipal Corporation
Witness- - - - - - - - - - By:_ _ _ _ _ _ _ _ _ _ _ __
Steve Warmington, Mayor
Witness- - - - - - - - - - By: _ _ _ _ _ _ _ _ _ _ _ __
Gail Kundinger, City Clerk
Agency Name
Witness- - - - - - - - - ~ By: _ _ _ _ _ _ _ _ _ _ _ __
It's President
Witness- - - - - - - - - - - By: _ _ _ _ _ _ _ _ _ _ _ __
It's Secretary
9
ATTACHMENT "A"
SCOPE OF SERVICES
CHDO's Name _ _ _ _ _ _ _ _ _ _ _ _ _ _~
SCOPE OF SERVICES
The Scope of Services section below lists the services to be provided under the terms of the
CHDO Agreement. This description shall establish the basis for the Community and
Neighborhood Services Office assessment of actual program accomplishments.
I. Location and Hours
The Service Agency shall provide the contracted services at the following locations(s):
II. Eligible Clients
The CHDO shall take affirmative action to insure that the primary beneficiaries of
services rendered under this Agreement are eligible HOME clients. Eligible clients are
defined as those persons of household who:
a. Reside in the City of Muskegon and
b. Have household incomes less than or equal to 80 percent of the median of the City.
10
ATTACHMENT "A"
SCOPE OF SERVICES
III. Description and Quantity of Services to be provided
Describe and number each service to be provided separately. Include the job title of the person
(s) who will primarily render the service, the time span, which the service will be offered, if less
than the total contract yeaT, and how the service will be rendered.
Estimated quantity of service to be provided (number of persons to be served).
11
ATTACHEMENT "B"
BUDGET
REVENUES
HOME FUNDS $. _ _ __
*Other (Specify Below)
Program Income
TOTAL REVENUES $
Total Portion to be
Budgeted Funded by HOME
EXPENDITURES
Salaries & Fringes $ $
Consultant & Contract Services $ $
Office Supplies $ $
Telephone $ $
Rent & Related Expenses $ $
Equipment $ $
Office Furniture $ $
Travel $ $
Specific Assistance to Individuals $ $
Miscellaneous (Specify)
$_ _ _ _
$_ _ _ _
$_ _ __
TOTAL EXPENDITURES $_ _ __ $ _ _ __
*LIST OTHER REVENURE SOURCES:
I. $_ _ __
2. $_ _ _ _
3. $_ _ __
4. $_ _ _ _
5. $_ _ _ _
12
SUBRECIPIENT / CHDO AGREEMENT
2003-2004
This SUBRECIPIENT/CHDO AGREEMENT, made this 1st day of June, 2003, by and between
the City of Muskegon, Michigan, A Municipal Corporation, (hereinafter "Recipient") and whose offices are located at , (hereinafter "Subrecipient/CHDO"),
WITNESSETH:
WHEREAS, Subrecipient/CHDO will receive Community Development Block Grant
(CDBG/HOME) funds from the Recipient, in the amount of$ , to be used for the following:
WHEREAS, the parties wish to set forth the conditions on which the funds are to be
made available;
NOW THEREFORE, in consideration of the covenants herein contained, the parties do
mutually agree as follow:
I. GENERAL CONDITIONS
1. Services to be delivered are eligible act1v1ttes as defined in Section
570.200 and 570.201 of the CDBG Administrative Regulations (CFR
570). And or Section 92.205 and 92.206 of HOME Administrative
Regulations (CFR 92)
2. The Subrecipient/CHDO certifies that the service is either:
a. a new service or
b. a quantifiable increase in the level of a service above the level which
has been provided by or in behalf of the applicant from local revenue
sources or State funds received by the applicant in the twelve (12)
calendar months prior to submission of the proposal, or
c. a continuation of a service that would otherwise be decreased due to
events beyond the control of the Subrecipient.
3. The Subrecipient/CHDO is incorporated as a non-profit organization in
good standing under Michigan Law.
1
4. The Subrecipient/CHDO waITants that a current copy of its charter (if
applicable), Articles of Incorporation and By-Laws are on file with the
Department of Community Development. The Subrecipient shall also
keep a cuITent list of its board members, its officers and their addresses on
file with the Community Development Department.
5. By resolution, the Subrecipient's/CHDO's Board of Directors shall certify
to the City a responsible contact person, who shall be considered their
representative in all matters relating to this Agreement for communication
and administrative purposes.
Until further written notice from the Subrecipient/CHDO, said contact person shall be:
II. PERSONNEL
1. The Subrecipient/CHDO shall maintain direct control of all personnel employed
by it and to provide the necessary training and supervision of its employees in
carrying out contracted programs. However, implementation of the "project"
must meet the requirement and approval of Community and Neighborhood
Services.
2. In all work made possible by or resulting from this agreement, affirmative action
will be taken to insure that low income persons, particularly minorities and
women, are given maximum opportunity for training and employment; and that
minority business concerns located in the area, to the greatest extent feasible, are
awarded sub-contracts when permitted by this Agreement (Section 3, CDF 135).
3. Incorporated by reference are Title VI of the Civil Rights Act of 1964, Executive
Order 11246 and 0MB Circular A-102, Attachment O which relates to equal
opportunity. Copies are available at the Community Development Office.
4. The Subrecipient/CHDO (including its membership body, Board of Directors,
committees, and paid and other volunteer staff) agrees that it will comply with
City policies and procedures concerning equal opportunity, affirmative action,
and non-discrimination in employment practices because of age, religion, race,
color, national origin, sex, education association, marital status or physical
limitation.
2
III. SCOPE OF SERVICES
The Subrecipient/CHDO shall provide the services specified in Attachment "A", Scope
of Services, in exchange for financial compensation detailed in Attachment "B".
IV. COMPENSATION AND METHOD OF PAYMENT
I. The maximum amount which the Subrecipient/CHDO may receive pursuant to
this Agreement is $ ~ - - - - - -
2. The Subrecipient/CHDO watrnnts that its Board of Directors has approved a
budget request to provide services detailed in this Agreement (attachment "B").
The budget total of $ _ _ _ _ _, shall remain unchanged during the year
unless amended as permitted in this Agreement. The Subrecipient/CHDO may
not, without City Commission approval, make transfer between categories not
exceeding 10% of the overall budget total, or $2,000.00, or whichever is greater.
3. Upon approval of Subrecipient's/CHDO request for payment, the
Subrecipient/CHDO shall be reimbursed for expenses within a maximum of
twenty (20 days.)
4. To receive payments, the Subrecipient/CHDO must complete and submit the
following:
a. Request for Payment
b. Detailed Invoice for Actual Expenditures
c. Quarterly Performance Reports
5. All program income, received by the Subrecipient, (if any) shall be disbursed by
the Subrecipient prior to request for payments from the Recipient. Program
income resulting from the project will be handled in accordance with the
requirements of 24 CFR 570.503 applicable to CDBG Recipients and 24 CFR
92.503 for HOME CHDO's. All program income derived from the HOME
activities by CHDO must be reinvested to the recipient (City) to the HOME
Investment Trust Fund.
6. If at the end of the term of this Agreement there are unexpended portions of the
contract amount set forth in this Agreement, the City may recapture said amount
for reallocation to other purposes.
7. If Subrecipient fails to comply with terms specified in this Agreement or refused
to accept and meet conditions imposed by the Department of Housing and Urban
Development (HUD), the Recipient may immediately terminate payments to the
3
Subrecipient and recover any funds it has advanced. In the event of the inability
of Subrecipient to perfonn or complete the project, or termination of the
Agreement by the City Commission, Recipient will pay only invoices for work
performed or satisfactorily completed.
8. The Recipient shall not be held liable for expenditures or obligations incurred in
excess of the authorized total budget, nor shall the City be held liable for
expenditures or obligations for ineligible cost pursuant to Section 570.200 and
570.201 of the Housing and Community Development Act. And 92.206, 92.207
and 92.208 of National Affordable Housing Act of 1990.
IV. FINANCING AUDITS AND INSPECTIONS
1. The Subrecipient/CHDO shall document the costs incurred with CDBG/HOME
funds with the support of properly executed payrolls, time records, invoices,
contracts, vouchers, receipts, or other official documentation that shows in proper
detail the nature and propriety of charges. All such documents must be clearly
identifiable and readily assessable during the term of the Agreement to City and
HUD officials or their authorized representative for audit and examination as
often as the City may deem necessary. Additionally, the Subrecipient agrees to
securely maintain such documents for a period of three (3) years after termination
of this Agreement.
2. The Subrecipient/CHDO is to act within thirty (30) days after the signing of this
Agreement to establish a procedure for its accounting operation that will not be
inconsistent with Federal Management Circular A-102, Attachment G, and can be
certified auditable by the Accountant for the Community Development
Department. The auditable procedure shall insure that monies provided by the
Community Development Block Grant HOME program can be separately traced
from other funds of the Subrecipient.
3. The Recipient shall provide the Subrecipient/CHDO with a copy of any account
requirements established by HUD, and the Subrecipient shall thenceforth be
responsible for compliance with such requirements.
4. Program Income earned by the Service Agency during the grant period shall be
retained by the Subrecipient, and in accordance with 0MB Circulars A-102, A-
110 and A-122 shall be:
a. Added to funds committed to the project by the City and the
Subrecipeint/CHDO to be used to further eligible program objectives as
defined in the seope of services of this Agreement (see Attachment A).
b. Deduct from the total project costs for the purposes of determining the net
costs on which the Federal (CDBG / HOME) share of the cost will be based.
4
5. No CDBG/ CHDO funds shall be disbursed under this Agreement by the
Subrecipient or any others contracted by the Subrecipient/CHDO unless those
contracted are in compliance with City and HUD requirements with regard to
fiscal matter and civil rights to the extent such requirements are applicable. The
Subrecipient/CHDO shall provide the Recipient with a copy of such contracts.
6. The Subrecipient/CHDO shall provide proof of Bonding Insurance for all
employees who handle funds.
V. INSURANCE COVERAGE
The Subrecipient shall indemnify, defend, and hold the Recipient, its officers, and the
employees harmless with respect to any damage claim arising out of activities specified
by this Agreement. This Subrecipient shall maintain for the entire period of this
Agreement a valid policy of liability insurance naming the City of Muskegon (Recipient)
as an insured party with limits of not less than $300,000 per occurrence. The
Subrecipient/CHDO shall also maintain coverage during the Agreement period for
Workers' Compensation as required by law. The Subrecipient/CHDO shall submit proof
of insurance and amount of coverage to the Community Development office prior to
receiving any funds.
VI. REPORTS, MONITORING AND EVALUATION
1. The Subrecipient/CHDO agrees to cooperate fully with the Community and
Neighborhood Services office, City and HUD officials, Citizen Committees, or
any other individuals appointed by City Commission to evaluate and monitor the
requirements and performance of programs financed with CDBG HOME funds.
The Subrecipient agrees to provide to the same parties listed information and
reports, oral or written, as may reasonably be required or requested during the
term of this Agreement on mattes relating to program activities, performance, or
contract compliance.
2. The Subrecipient agrees to complete and submit to the Community and
Neighborhood Services Office in a timely manner a Quarterly Performance
Report.
The report forms are to be provided by the City. The Subrecipient/CHDO agrees to collect and
make available to the Community and Neighborhood Services Department the following
information on its clients or program participants:
5
a. Street (only) address of the client: (inside or outside City);
b. Month and year of initial services;
c. Number of services units rendered to each client served under this agreement;
d. Age and sex of the client or participant;
e. Whether the client or participant is the head of household;
f. Whether client or participant is a member of a minority group (which group);
g. Family income by family size (which will be indicated by checking an income
range category);
h. Whether client or participant head of household is handicapped;
The information is to be collected on a "Client Card" or tabulation sheets
provided by the City. The form will state that the client/participant information
being collected is required in order for the Subrecipient to receive Community
Development Block Grant HOME funds from the City of Muskegon. Client
information will be submitted quarterly with the Performance Reports.
Alternate systems of collecting data required in this section can be developed in
consultation with the Community and Neighborhood Services Office. The
Recipient retains the final right to approve any waiver of, or amendment to, this
reporting requirement.
VII. CONTRACT AMENDMENT
That except as expressly provided elsewhere in this Agreement, any modifications or
amendments to this Agreement may be made by mutual Agreement of the Subrecipient
and the City Commission. It is expressly understood that this Agreement is subject to
HUD Community Development Block Grant/HOME funding regulations. Should HUD
act to make changes in regulations or suspend or terminate funding, such actions shall
automatically amend this Agreement, if applicable.
VIII. ASSIGNABIL TIY
The Subrecipient/CHDO shall not assign or transfer any interest in this Agreement
without consent of the City Commission.
IX. POLITICAL ACTIVITIES
None of the funds, materials, property or services provided directly or indirectly under
this Agreement shall be used for any partisan political activities, or to further the election
or defeat of any candidate for office.
6
X. CONFLICT OF INTEREST
No employee, officer or agent of the Recipient shall paiticipate in the award or
administration of this Agreement if a conflict of interest real or apparent, would be
involved, or any type of benefit financially, politically or asset wise. (i.e. obtain housing,
illegal obtaining of contracts, etc.) See CFR 24.92.356 and CFR 570.611.
XI. CITY'S RIGHT TO ENFORCE
1. The community and Neighborhood Services Department may unilaterally suspend
( on a temporary basis) or alter this Agreement, including the amount of funds
allocated, for failure to comply with the terms and conditions of this Agreement
or failure to comply with regulations for the U.S. Government, or directives of the
Muskegon City Commission, some examples of which follow:
a. Ineffective or improper use of the Community Development Block
Grant/HOME funds:
b. Failure to submit complete and c01Tect perf01mance or financial repo1ts;
c. Failure to provide services called for in the Scope of Services section within
the time frame stated: and
d. If for any reason, the program cannot be completed.
2. The City Commission may unilaterally te1minate this Contract for failure to
comply with the terms and conditions of the Agreement, the regulations of the
U.S. government, or directives of the Muskegon City Commission.
3. The Community and Neighborhood Services Department office shall provide
reasonable notice to the Subrecipient before action is taken to suspend, alter or
terminate this Agreement. Such notice shall include the reasons for the
contemplated action and the Subrecipient shall be give a right to protest.
4. In the event this Agreement is te1minated by the City Commission, the Ownership
of all documents, equipment and properties acquired by CDBG / HOME or
Program Income funds shall revert to the Recipient with the decision for final
disposition being left to the City Commission. However, the Subrecipient shall
receive just compensation for any work satisfactorily completed prior to such
termination.
XII. PURSUIT OF ADDITIONAL RESOURCES
The Subrecipient/CHDO shall make bona fide efforts to secure funds and resources from
other sources. Fmther, the Subrecipient/CHDO shall cooperate with the Community and
Neighborhood office, as requested, in its efforts to pursue additional or alternative
funding. The Subrecipient shall report these efforts as part of the required Quarterly
Performance Repo1t.
7
XIII. TIME PERFORMANCE AGREEMENT TERM
All services rendered hereunder shall be completed by May 31, 2004. This Agreement
automatically terminates at that time unless specifically extended by the City
Commission. All funds allocated which are unspent or encumbered for services under
this Agreement shall be repaid to the City within fifteen (15) days of this date.
XIV. OTHER
1. That it will comply with all requirements applicable to HUD Block Grant
Subrecipients set forth in the CDBG Program Requirements contained in 24 Code
of Federal Regulation Part 570. Such requirements petiain to, but are not limited
to, compliance with 0MB Circular A-102, reports and information, audits and
inspection, unearned payment, non-discrimination, disposition of real property,
and miscellaneous grant administration requirements.
2. That should the Subrecipient/CHDO utilize any portion of CDBG/HOME funds
for acquisition of property or relocation of individuals, families, or businesses as a
result of a project involving federal financial assistance from HUD, as defined in
regulations at 24CFR Part 42.79, all acquisition and/or relocation shall conform to
the Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 (P .L. 91.646), and the regulations which implement the Act (24 CFR Part
42).
3. That except with respect to the rehabilitation of residential use for less than eight
families, all contractors engaged under contracts in excess of $2000 for the
constrnction prosecution, completion or repair of any building or work financed in
whole or in part with assistance provided under this agreement, shall comply with
HUD requirements pertaining to such Contracts and the applicable requirements
of the regulations of the Department of Labor under 29 CFR Parts 2, 5, and Sa,
governing the payment of wages and the ratio of apprentices and trainees to
journeymen; provided, that if wage rates higher tan those required under such
regulations are imposed by State or local law, nothing hereunder is intended to
relieve the Subrecipient of its obligations, if any, to require payment of the higher
rates. The Subrecipient shall require to be inserted in full in all such contracts
subject to such regulations, provisions meeting the requirements of 29 CFR 5.5
and for such contracts in excess of$10,000, 29n CFR 5a.3.
4. The Subrecipient/CHDO agrees to abide by all other Federal requirements not
highlighted in this Agreement, but included in the Community Development
Block Grant regulations HOME Regulation available at the Community and
Neighborhood Services Department, or other regulations subsequently supplied to
the Subrecipeint.
8
5. That should the Subrecipient/CHDO funding involve construction work, the
Subrecipient CHDO contractors(s) agree to allow access to the City or its
representative for inspection purposes.
6. Should the Subrecipient/CHDO acquire any real or personal property with funds
provided under this Agreement, it will not dispose of such property through sale
or otherwise without written permission of Recipient. If prope1iy is disposed of
without written permission, the proceeds shall be returned to the Recipient, and
Subrecipient may be required to reimburse the Recipient for the Federal portion of
pmiicipation in the project, subject to requirements in the Office of Management
and Budget Circular A-102, Attachment N, Property Management Stands.
XV. CONTRACT CLOSEOUT
All contracts will be closed out in accordance with the procedures specified in 0MB
Circular A-102, Attachment L, and Portions of 0MB Circulars A-110 and A-122
applicable to non-profit organizations.
In Witness Whereof, the parties hereto have caused this contract to be executed the day at1d year
above written.
Signed In the Presence Of: CITY OF MUSKEGON, MICHIGAN
A Municipal Corporation
Witness,_ _ _ _ _ _ _ _ __ By:._ _ _ _ _ _ _ _ _ _ _ __
Steve Warmington, Mayor
Witness._ _ _ _ _ _ _ _ __ By:. _ _ _ _ _ _ _ _ _ _ _ __
Gail Kundinger, City Clerk
Agency Name
Witness,_ _ _ _ _ _ _ _ __ By:. _ _ _ _ _ _ _ _ _ __
It's President
Witness,_ _ _ _ _ _ _ _ _ __ By:. _ _ _ _ _ _ _ _ _ _ _ __
It's Secretary
9
ATTACHMENT "A"
SCOPE OF SERVICES
Subrecipient N a m e - - - - - - - - - - - - - - - ~
SCOPE OF SERVICES
The Scope of Services section below lists the services to be provided under the terms of the
Subrecipient/CHDO Agreement. This description shall establish the basis for the Community
and Neighborhood Services Office assessment of actual program accomplishments.
I. Location and Hours
The Service Agency shall provide the contracted services at the following locations(s):
IL Eligible Clients
The Subrecipient/CHDO shall take affirmative action to insure that the primary
beneficiaries of services rendered under this Agreement are eligible CDBG clients and
HOME clients. Eligible clients are defined as those persons of household who:
a. Reside in the City of Muskegon and
b. Have household incomes less than or equal to 80 percent of the median of the City.
10
ATTACHMENT "A"
SCOPE OF SERVICES
III. Description and Quantity of Services to be provided
Describe and number each service to be provided separately. Include the job title of the person
(s) who will primarily render the service, the time span, which the service will be offered, ifless
than the total contract year, and how the service will be rendered.
Estimated quantity of service to be provided (number of persons to be served).
11
ATTACHMENT "B"
BUDGET
REVENUES
CDBG/HOME FUNDS $_ _ __
*Other (Specify Below)
Program Income
TOTAL REVENUES $_ _ __
Total Po1tion to be
Budgeted Funded by CDBG/HOME
EXPENDITURES
Salaries & Fringes $ $
Consultant & Contract Services $ $
Office Supplies $ $
Telephone $ $
Rent & Related Expenses $ $
Equipment $ $
Office Furniture $ $
Travel $ $
Specific Assistance to Individuals $ $
Miscellaneous (Specify)
$
$
$
TOTAL EXPENDITURES $ $
*LIST OTHER REVENURE SOURCES:
I. $
2. $
3. $
4. $
5. $
12
hi (J)
Commission Meeting Date: August 12, 2003
Date: August 5, 2003
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Purchase of lot on Octavius
SUMMARY OF REQUEST: To approve the purchase of a lot on
Octavius from a Mr. James Douglas for $200.00. The property
description is City of Muskegon Revised Plat of 1903 South ½ Lot 10
Block 149. It is adjacent to 503 Octavius, a current City rehabilitation
project. If this is approved, the two lots will be combined in order to
create a lot in compliance with the City's current zoning guidelines.
FINANCIAL IMPACT: The $200.00 will be added to the cost of the
rehabilitation project at 503 Octavius.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the purchase.
COMMITTEE RECOMMENDATION: None needed.
QUIT-CLAIM DEED
KNOW ALL MEN BY THESE PRESENTS: That J. James Douglas, a married man whose address is 4220 E.
Fruitport Road , Fruitport, MI
QUIT CLAIMS TO: City of Muskegon 933 Terrace Muskegon, Michigan 49443,
the following described premises situated in the City of Muskegon, County ofMnskegon, State of Michigan, to wit:
City of Muskegon revised plat of 1903 S ½ lot 10 Block 149
for the sum of Two Hundred and no/100 Dollars ($200.00)
This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA 207.505(h)(i) and
MCLA 207.526 Sec. 6(h)(i).
Dated this 11.___ day of_A_u=g_u_s_t_ _ _ _ _ ., 2063_
Seller
By_ _ _ _ _ _ _ _ _ _ _ _ __
J. James Douglas
STATE OF MICIDGAN
COUNTY OF MUSKEGON
The foregoing instrumeut was acknowledged before me this __ day of _ _ _ _ _~ 200~
PREPARED BY:
John C. Schrier Notary Public, Muskegon County, Michigan
Parmenter O'Toole My commission expires: _ _ _ _ _ __
175 W. Apple Ave., P. 0. Box 786
Muskegon, Ml 49443-0786
Telephone: 616/722-1621
SEND SUBSEQUENT TAX BILLS TO: Grantee WHEN RECORDED RETURN TO: Grantee
O:\CNS\COMMON\WPDATA\HOME\Tax-Reverted\322 Arnity\quit-claim.doc
Commission Meeting Date: August 12, 2003
Date: August 5, 2003
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Approval of Contractor for Construction of House
at 361 Oak.
SUMMARY OF REQUEST: To approve the contract with Holden
Construction 291 Washington, Muskegon Ml for the construction of the
house at 361 Oak for the price $116,083. The house at 361 Oak will
replace a former Turnkey 3 home that was recently demolished by the
City of Muskegon. The project at 361 Oak is under the Operation "At
Long Last" aka Shangaliwa program. After the house is completed, it
will be sold to a qualified first-time homebuyer as part of the City of
Muskegon's aggressive neighborhood revitalization efforts. The funding
for this project will be supplied from the City of Muskegon HOME funds
from the U.S. Department of Housing and Urban Development.
FINANCIAL IMPACT: The funding for the project will be taken from the
City's 2002 HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the contract with the fore
mentioned contractor and direct the Mayor and Clerk to sign the
contract.
COMMITTEE RECOMMENDATION: None needed.
FYI
The City of Muskegon's Community and Neighborhood Services received a total of four
bids for new construction services for 361 Oak and 1668 Beidler.
361 Oak 1668 Beidler
Holden Construction ** $116,083 $121,698
291 Washington
Muskegon,MI49441
Whitelake Builders $106,010* $105,000
8800 Ferry St.
Montague, MI 49437
Top Notch Design ** $122,470 $112,829
4740 Jenson
Fruitport, MI 49415
Bantam $144,268* $129,110
1290 Wood St.
Muskegon,Ml49442
* Errors found in calculations
** Eliminated item, bid decreased by $2,000
White Lake Builder's did not have positive references.
RESIDENTIAL CONSTRUCTION AGREEMENT
This Residential Construction Agreement is made as of the 13th day of August, 2003
between City of Muskegon (the "Owner") and Holden Contruction ("General Contractor").
BACKGROUND
A. General Contractor and Purchaser agree that General Contractor shall construct a
single family residence (the "Residence") for Purchaser pursuant to the Infill Program, according
to terms of this Agreement.
THEREFORE, the parties agree as follows:
1. Building Site. Owner has signed a binding purchase agreement with Purchaser to
give a building site located on the real estate located at 361 Oak (Va cant Land) and legally
described on Exhibit B (the "Prope1ty"). Owner has agreed to hire General Contractor to build
the Residence on the Prope1ty.
2. The Residence. General Contractor shall build the Residence in accordance with
the plans and specifications, a copy of which is attached as Exhibit C (the "Plans"). Any features
of the Residence that are not explicitly described in the Plans shall be determined in the sole
discretion of General Contractor. For example, unless specifically set forth on the Plans, the
location of all electrical outlets shall be as determined by General Contractor.
3. Price. The price for constructing the Residence shall be $116,083 ("Price"). The
Price may change in the event Owner and General Contractor and/or Purchaser, agree to
change orders, modifications or extras, as defined below, in writing and signed by all the
above.
3 .1 The price is based on certain allowances. Allowances are merely
estimates of costs for items to be added to the Residence at Purchaser's and Owner's
discretion, snch as carpeting, light fixtures, window treatments, etc. The allowances nsed
in determining the Price are set fo1th on Exhibit D. The Price will increase or decrease
depending on the actual cost of the items listed as allowances. In the event the actual cost
of any allowance exceeds the estimated amount ("Additional Allowance Amount"),
Purchaser shall pay the Additional Allowance Amount within 30 days of General
Contractor's invoice. No Additional Allowance Amount shall be billed through General
Contractor without the express prior written consent of Owner.
4. Costs Included. The Price shall include the cost of the building permit and all
sales taxes incurred by General Contractor for materials purchased and installed in the
Residence, but shall exclude sales tax for those items purchased either by General Contractor or
Purchaser as an allowance. The Price shall not include any other costs whatsoever associated
with the construction of the Residence, including, but not limited to, utility bills, heating costs,
sewer or water hook-up charges, trunkage fees, regional fees, or any other water, sewer or
property tax assessments, each of which shall be Purchaser's sole responsibility.
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5. Payment of the Price. The Price shall be paid in accordance with the following
schedule ("Payment Schedule").
General Contractor may request draws from Transnation Title Insurance Co.
("Transnation"), which is acting as escrow agent. Draws may be requested no more than once
per month. Requests for draws and documentation required will be in a format acceptable
Transnation, and shall include at a minimum lien waivers. The total amount of a draw may never
exceed the percentage of completion, less a 10% holdback. The balance owed on the contract,
including any holdback, shall be paid upon completion and issuance of a certificate of
occupancy.
6. Modifications/Extras. No modifications to the Plans ("Modifications") or
requests for additional construction ("Extras") shall be binding upon either party, unless the
Modifications and/or Extras are set forth on a written change order that is signed by General
Contractor, future Purchaser of property ("Purchaser"), and Owner ("Change Order"). The
Change Order must provide a detailed description of the Modifications and/or Extras and the cost
or credit to be charged. Where a Change Order increases or decreases the Price ("Adjusted
Price"), the Adjusted Price shall be paid according to the remaining portion of the Payment
Schedule.
7. Possession. Purchaser shall be entitled to possession of the Residence upon
payment of the Price or Adjusted Price in full. Upon payment in full, General Contractor shall
deliver to Purchaser a completed sworn statement and a full unconditional waiver of lien.
Payment of the Price or Adjusted Price by Purchaser shall constitute the acceptance of the
Residence.
8. Estimated Completion Date. General Contractor shall commence construction
of the Residence within 30 days from the date the patiies sign this agreement August 13, 2003
("Commencement Date"). General Contractor shall endeavor to complete the Residence by
December 31, 2003("Completion Date"). Provided, that both the Commencement Date and the
Completion Date may be extended as a result of circumstances beyond the control of General
Contractor, including, but not limited to, delays caused by suppliers or subcontractors, delays for
utility hook-ups, Acts of God, labor disputes, governmental inspections, regulations, or permit
processes, material back orders, Purchaser's requests for Change Orders, fire, injury or disability
to General Contractor or weather.
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8. General Contractor Conditions. This Agreement is subject to and includes all
of the Contractor Conditions attached to this Agreement as Exhibit A.
Owner- City of Muskegon
By: _ _ _ _ _ _ _ _ _ _ _ _~
Stephen J. Warmington
Its: Mayor
By: _ _ _ _ _ _ _ _ _ _ _ _~
Gail Kundinger, MMC
Its: City Clerk
General Contractor - Holden Construction
Dated: - - - - - - By: _ _ _ _ _ _ _ _ _ _ _ _ _ __
Cutiis Holden
Its: Owner
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EXHIBIT A
Contractor CONDITIONS
I. General Contractor's Warranties. All building materials used in the construction of
the Residence shall be new. General Contractor guarantees its workmanship for a period of one year
from the date of final completion. Within that period, General Contractor may replace, at its option, any
materials incorporated into the Residence which are defective, provided the manufacturer's warranty is
still in full force and effect and, in fact, the manufacturer honors that warranty. To make a claim under
this warranty, Purchaser must give General Contractor written notice of any such defect in the
workmanship and/or materials promptly upon discovery and not later than expiration of the one year
warranty period. This warranty does not apply to workmanship or materials requiring repair or
replacement because of normal wear and tear or natural settling. General Contractor shall turn over and
transfer to Purchaser all manufacturer's warranties that are delivered directly to General Contractor by the
manufacturer. All warranties under this agreement shall transfer upon the date of sale to Buyer as the
Purchaser's successor in interest.
2. Purchaser's Warranties. Purchaser covenants and warrants that the Property is subject
to a binding purchase agreement. Purchaser shall locate the exact location of the Residence on the
Property. All corners of Residence shall be clearly marked with surveyor stakes. Purchaser covenants
and agrees that such location is in compliance with all applicable federal, state and local rules and
regulations, including, but not limited to, building restrictions, set-back requirements, sand dune and
wetland laws, and regulations and zoning ordinances. In the event the location of the Residence is moved
for any reason, General Contractor expressly reserves the right to increase the Price accordingly to the
extent and in such amounts as the new location increases the cost to General Contractor.
3. License. General Contractor is a residential General Contractor and a residential
maintenance and alteration contractor and is required to be licensed under article 24 of Act 299 of the
Public Acts of 1980, as amended, being sections 339.2401 to 399.2412 of the Michigan Compiled Laws.
An electrician is required to be licensed under Act No. 217 of the Public Acts of 1956, as amended, being
sections 338.881 to 338.892 of the Michigan Compiled Laws. A Plumber is required to be licensed under
Act No. 266 of the Public Acts of 1929, as amended being sections 338.90 I to 338.917 of the Michigan
Compiled Laws. General Contractor is licensed by the State of Michigan as a licensed Michigan
Contractor and maintains its license in good standing. General Contractor's License and ID numbers are
2101076141 and 5286548, respectively.
4. Laws, Ordinances and Regulations. In connection with the construction of the
Residence, General Contractor shall meet and comply with all applicable laws, ordinances, and
regulations.
5. Notice of Commencement. Purchaser shall deliver a Notice of Commencement in
accordance with the Michigan Construction Lien Act within ten days of this Agreement.
6. Diligent Pursuit. General Contractor shall diligently pursue its obligations under this
Agreement. If Purchaser believes that General Contractor has failed to comply with this paragraph, it
shall provide General Contractor not less than I 5 days written notice of such non-compliance, a list of
Purchaser's specific complaints, and a reasonable time within which General Contractor shall cure any
such reasonable complaints. Until Purchaser fully complies with the notice provisions set forth in this
paragraph, Purchaser may not replace General Contractor with any other party to complete construction
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and may not deduct from the Price any amount paid by Purchaser to complete construction in accordance
with the Plans.
7. Insurance. Purchaser shall procure and maintain an "all risk" insurance policy and shall
name General Contractor as an additional named insured. Purchaser shall provide General Contractor
with evidence of such insurance upon request. General Contractor shall maintain a policy of General
Contractor's insurance fully insuring the Residence from the date construction commences until the date
of substantial completion. Purchaser and their mmtgagee may also maintain a policy of insurance upon
their interest in the Residence. General Contractor shall also carry public liability insurance with
coverage limits not less than $300,000 single-limit coverage and worker's compensation insurance in an
amount not less than the statutory minimum. Such policies shall name Purchaser and their mmtgagee as
additional named insured. General Contractor shall provide Purchaser with evidence of such insurance
upon request. Purchaser and General Contractor waive all rights against each other for damages caused
by fire or other perils to the extent covered by insurance provided under this paragraph.
8. Miscellaneous.
9.1 Applicable Law. This Agreement is executed in, shall be governed by, and
construed and interpreted in accordance with the laws of the State of Michigan.
9.2 Binding Effect. This Agreement shall be binding upon, inure to the benefit of,
and be enforceable by the pmties and their respective legal representatives, successors, and
assigns.
9.3 Full Execution. This Agreement requires the signature of both parties. Until
fully executed on a single copy or in counterparts, this Agreement is of no binding force or effect,
and if not fully executed, this Agreement is void.
9.4 Counterpa1ts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original as against any party whose signature appears thereon,
and all of which together shall constitute one and the same instrument. This Agreement shall
become binding upon the pmties when one or more counterparts, individually or taken together,
shall bear the signatures of all pmties.
9.5 Non-Waiver. No waiver by any party of any provision of this Agreement shall
constitute a waiver by such party of such provision on any other occasion or a waiver by such
pmty of any other provision of the Agreement.
9.6 Severability. Should any one or more of the provisions of this Agreement be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions shall not in any way be impaired or affected.
9.7 No Discrimination. Discrimination on the basis ofreligion, race, creed, color,
national origin, age, sex, marital status, or handicapped condition by either party in respect to the
construction of the Residence is prohibited.
9.8 Assignment or Delegation. Neither General Contractor nor Purchaser may
assign all or any pmt of this Agreement. Provided, that General Contractor may delegate all or
any pmt of its obligations to perform the services under this Agreement, to any persons or entities
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that General Contractor, in its sole discretion, deems appropriate, including sub-contractors.
Such delegation shall be at the sole expense of General Contractor unless otherwise provided.
9.9 Notices. All required or permitted written notices shall be deemed effective and
duly given when: (i) personally delivered; (ii) sent by fax; (iii) one day after depositing in the
custody of a nationally recognized receipted overnight delivery service; or (iv) two days after
posting in the U.S. first class, registered or certified mail, postage prepaid, to the recipient party
at the address as set forth at the outset of this Agreement, or to such other address as the recipient
paiiy shall have furnished to the sender in accordance with the requirements for the giving of
notice.
9.10 Pronouns. For convenience, Purchaser has been referred to this Agreement
sometimes in the singular and at other times in the plural.
Owner- City of Muskegon
By:--------------
Stephen J. Warmington, Mayor
By: _ _ _ _ _ _ _ _ _ _ _ _~
Gail Kundinger, MMC City Clerk
General Contractor- Holden Construction
Dated: ___________ By:. _ _ _ _ _ _ _ _ _ _ _ _ __
Cmiis Holden
Its: Owner
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EXHIBITB
Legal Description
The City of Muskegon revised plat of 1903 Lot 4 Block 202
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~00~- ,lo\ ~)
Commission Meeting Date: August 12, 2003
Date: August 5, 2003
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Approval of Contractor for Construction of House
at 1668 Beidler.
SUMMARY OF REQUEST: To approve the contract with Top Notch
Design, 4740 Jension Rd, Fruitport Ml for the construction of the new
home to be located at 1668 Beidler for the cost of $112,829. The site at
1668 Beidler formerly was occupied by a Turnkey 3 home that was
recently demolished. After the construction is completed, the new home
will be sold to a qualified first-time homebuyer continuing the City's
aggressive neighborhood revitalization efforts under the Operation "At
Long Last."
FINANCIAL IMPACT: The funding for the project will be taken from the
City's 2003 HOME funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the contract with Top Notch
Design and direct the Mayor and Clerk to sign the contract.
COMMITTEE RECOMMENDATION: None needed.
FYI
The City of Muskegon's Conununity and Neighborhood Services received a total of four
bids for new construction services for 361 Oak and 1668 Beidler.
361 Oak 1668 Beidler
Holden Construction * * $116,083 $121,698
291 Washington
Muskegon,MI49441
Whitelake Builders $106,010* $105,000
8800 Ferry St.
Montague, MI 49437
Top Notch Design** $122,470 $112,829
4740 Jenson
Fruitport, MI 49415
Bantam $144,268* $129,110
1290 Wood St.
Muskegon,MI49442
* Errors found in calculations
** Eliminated item, bid decreased by $2,000
White Lake Builder's did not have positive references.
RESIDENTIAL CONSTRUCTION AGREEMENT
This Residential Construction Agreement is made as of the 13th day of August, 2003
between City of Muskegon (the "Owner") and Top Notch Design Contractors ("General
Contractor").
BACKGROUND
A. General Contractor and Purchaser agree that General Contractor shall construct a
single family residence (the "Residence") for Purchaser pursuant to the Infill Program, according
to terms of this Agreement.
THEREFORE, the parties agree as follows:
1. Building Site. Owner has signed a binding purchase agreement with Purchaser to
give a building site located on the real estate located at 1668 Beidler (Vacant Land) and legally
described on Exhibit B (the "Property"). Owner has agreed to hire General Contractor to build
the Residence on the Property.
2. The Residence. General Contractor shall build the Residence in accordance with
the plans and specifications, a copy of which is attached as Exhibit C (the "Plans"). Any features
of the Residence that are not explicitly described in the Plans shall be determined in the sole
discretion of General Contractor. For example, unless specifically set forth on the Plans, the
location of all electrical outlets shall be as determined by General Contractor.
3. Price. The price for constructing the Residence shall be $112,829 ("Price"). The
Price may change in the event Owner and General Contractor and/or Purchaser, agree to
change orders, modifications or extras, as defined below, in writing and signed by all the
above.
3. I The price is based on certain allowances. Allowances are merely
estimates of costs for items to be added to the Residence at Purchaser's and Owner's
discretion, such as carpeting, light fixtures, window treatments, etc. The allowances used
in determining the Price are set forth on Exhibit D. The Price will increase or decrease
depending on the actual cost of the items listed as allowances. In the event the actual cost
of any allowance exceeds the estimated amount (" Additional Allowance Amount"),
Purchaser shall pay the Additional Allowance Amount within 30 days of General
Contractor's invoice. No Additional Allowance Amount shall be billed through General
Contractor without the express prior written consent of Owner.
4. Costs Included. The Price shall include the cost of the building permit and all
sales taxes incurred by General Contractor for materials purchased and installed in the
Residence, but shall exclude sales tax for those items purchased either by General Contractor or
Purchaser as an allowance. The Price shall not include any other costs whatsoever associated
with the construction of the Residence, including, but not limited to, utility bills, heating costs,
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sewer or water hook-up charges, trunkage fees, regional fees, or any other water, sewer or
property tax assessments, each of which shall be Purchaser's sole responsibility.
5. Payment of the Price. The Price shall be paid in accordance with the following
schedule ("Payment Schedule").
General Contractor may request draws from Transnation Title Insurance Co.
("Transnation"), which is acting as escrow agent. Draws may be requested no more than once
per month. Requests for draws and documentation required will be in a format acceptable
Transnation, and shall include at a minimum lien waivers. The total amount of a draw may never
exceed the percentage of completion, less a 10% holdback. The balance owed on the contract,
including any holdback, shall be paid upon completion and issuance of a ce1iificate of
occupancy.
6. Modifications/Extras. No modifications to the Plans ("Modifications") or
requests for additional construction ("Extras") shall be binding upon either pmty, unless the
Modifications and/or Extras are set forth on a written change order that is signed by General
Contractor, future Purchaser of prope1ty ("Purchaser"), and Owner ("Change Order"). The
Change Order must provide a detailed description of the Modifications and/or Extras and the cost
or credit to be charged. Where a Change Order increases or decreases the Price (" Adjusted
Price"), the Adjusted Price shall be paid according to the remaining portion of the Payment
Schedule.
7. Possession. Purchaser shall be entitled to possession of the Residence upon
payment of the Price or Adjusted Price in full. Upon payment in full, General Contractor shall
deliver to Purchaser a completed sworn statement and a full unconditional waiver of lien.
Payment of the Price or Adjusted Price by Purchaser shall constitute the acceptance of the
Residence.
8. Estimated Completion Date. General Contractor shall commence construction
of the Residence within 30 days from the date the parties sign this agreement August 13, 2003
("Commencement Date"). General Contractor shall endeavor to complete the Residence by
December 31, 2003("Completion Date"). Provided, that both the Commencement Date and the
Completion Date may be extended as a result of circumstances beyond the control of General
Contractor, including, but not limited to, delays caused by suppliers or subcontractors, delays for
utility hook-ups, Acts of God, labor disputes, governmental inspections, regulations, or permit
processes, material back orders, Purchaser's requests for Change Orders, fire, injury or disability
to General Contractor or weather.
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8. General Contractor Conditions. This Agreement is subject to and includes all
of the Contractor Conditions attached to this Agreement as Exhibit A.
Owner- City of Muskegon
By:--------------
Stephen J. Warmington
Its: Mayor
By:--------------
Gail Kundinger, MMC
Its: City Clerk
General Contractor -Top Notch Design
Contractors
Dated: - - - - - - By: _ _ _ _ _ _ _ _ _ _ _ _ __
Donald Beach
Its: Owner
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EXHIBIT A
Contractor CONDITIONS
1. General Contractor's Warranties. All building materials used in the construction of
the Residence shall be new. General Contractor guarantees its workmanship for a period of one year
from the date of final completion. Within that period, General Contractor may replace, at its option, any
materials incorporated into the Residence which are defective, provided the manufacturer's warranty is
still in full force and effect and, in fact, the manufacturer honors that warranty. To make a claim under
this warranty, Purchaser must give General Contractor written notice of any such defect in the
workmanship and/or materials promptly upon discovery and not later than expiration of the one year
warranty period. This warranty does not apply to workmanship or materials requiring repair or
replacement because of normal wear and tear or natural settling. General Contractor shall turn over and
transfer to Purchaser all manufacturer's warranties that are delivered directly to General Contractor by the
manufacturer. All warranties under this agreement shall transfer upon the date of sale to Buyer as the
Purchaser's successor in interest.
2. Purchaser's Warranties. Purchaser covenants and warrants that the Prope1ty is subject
to a binding purchase agreement. Purchaser shall locate the exact location of the Residence on the
Prope1ty. All corners of Residence shall be clearly marked with surveyor stakes. Purchaser covenants
and agrees that such location is in compliance with all applicable federal, state and local rules and
regulations, including, but not limited to, building restrictions, set-back requirements, sand dune and
wetland laws, and regulations and zoning ordinances. In the event the location of the Residence is moved
for any reason, General Contractor expressly reserves the right to increase the Price accordingly to the
extent and in such amounts as the new location increases the cost to General Contractor.
3. License. General Contractor is a residential General Contractor and a residential
maintenance and alteration contractor and is required to be licensed under article 24 of Act 299 of the
Public Acts of 1980, as amended, being sections 339.2401 to 399.2412 of the Michigan Compiled Laws.
An electrician is required to be licensed under Act No. 217 of the Public Acts of 1956, as amended, being
sections 338.881 to 338.892 of the Michigan Compiled Laws. A Plumber is required to be licensed under
Act No. 266 of the Public Acts of 1929, as amended being sections 338.901 to 338.917 of the Michigan
Compiled Laws. General Contractor is licensed by the State of Michigan as a licensed Michigan
Contractor and maintains its license in good standing. General Contractor's License and ID numbers are
2101123555 and 2929181 , respectively.
4. Laws, Ordinances and Regulations. In connection with the construction of the
Residence, General Contractor shall meet and comply with all applicable laws, ordinances, and
regulations.
5. Notice of Commencement. Purchaser shall deliver a Notice of Commencement in
accordance with the Michigan Construction Lien Act within ten days of this Agreement.
6. Diligent Pursuit. General Contractor shall diligently pursue its obligations under this
Agreement. If Purchaser believes that General Contractor has failed to comply with this paragraph, it
shall provide General Contractor not less than 15 days written notice of such non-compliance, a list of
Purchaser's specific complaints, and a reasonable time within which General Contractor shall cure any
such reasonable complaints. Until Purchaser fully complies with the notice provisions set forth in this
paragraph, Purchaser may not replace General Contractor with any other patty to complete construction
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and may not deduct from the Price any amount paid by Purchaser to complete construction in accordance
with the Plans.
7. Insurance. Purchaser shall procure and maintain an "all risk" insurance policy and shall
name General Contractor as an additional named insured. Purchaser shall provide General Contractor
with evidence of such insurance upon request. General Contractor shall maintain a policy of General
Contractor's insurance fully insuring the Residence from the date construction commences until the date
of substantial completion. Purchaser and their mmigagee may also maintain a policy of insurance upon
their interest in the Residence. General Contractor shall also carry public liability insurance with
coverage limits not less than $300,000 single-limit coverage and worker's compensation insurance in an
amount not less than the statutory minimum. Such policies shall name Purchaser and their mortgagee as
additional named insured. General Contractor shall provide Purchaser with evidence of such insurance
upon request. Purchaser and General Contractor waive all rights against each other for damages caused
by fire or other perils to the extent covered by insurance provided under this paragraph.
8. Miscellaneous.
9. 1 Applicable Law. This Agreement is executed in, shall be governed by, and
construed and interpreted in accordance with the laws of the State of Michigan.
9.2 Binding Effect. This Agreement shall be binding upon, inure to the benefit of,
and be enforceable by the pmiies and their respective legal representatives, successors, and
assigns.
9.3 Full Execution. This Agreement requires the signature of both patties. Until
fully executed on a single copy or in counterparts, this Agreement is of no binding force or effect,
and if not fully executed, this Agreement is void.
9.4 Counterpatis. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original as against any patty whose signature appears thereon,
and all of which together shall constitute one and the same instrument. This Agreement shall
become binding upon the parties when one or more counterparts, individually or taken together,
shall bear the signatures of all parties.
9.5 Non-Waiver. No waiver by any party of any provision of this Agreement shall
constitute a waiver by such party of such provision on any other occasion or a waiver by such
party of any other provision of the Agreement.
9.6 Severability. Should any one or more of the provisions of this Agreement be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions shall not in any way be impaired or affected.
9. 7 No Discrimination. Discrimination on the basis of religion, race, creed, color,
national origin, age, sex, marital status, or handicapped condition by either party in respect to the
construction of the Residence is prohibited.
9.8 Assignment or Delegation. Neither General Contractor nor Purchaser may
assign all or any pati of this Agreement. Provided, that General Contractor may delegate all or
any part of its obligations to perform the services under this Agreement, to any persons or entities
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that General Contractor, in its sole discretion, deems appropriate, including sub-contractors.
Such delegation shall be at the sole expense of General Contractor unless otherwise provided.
9.9 Notices. All required or permitted written notices shall be deemed effective and
duly given when: (i) personally delivered; (ii) sent by fax; (iii) one day after depositing in the
custody of a nationally recognized receipted overnight delivery service; or (iv) two days after
posting in the U.S. first class, registered or certified mail, postage prepaid, to the recipient patty
at the address as set forth at the outset of this Agreement, or to such other address as the recipient
patty shall have furnished to the sender in accordance with the requirements for the giving of
notice.
9.10 Pronouns. For convenience, Purchaser has been referred to this Agreement
sometimes in the singular and at other times in the plural.
Owner- City of Muskegon
By: - - - - - - - - - - - - - - - - -
Stephen J. Warmington, Mayor
By: - - - - - - - - - - - - - - - - -
Gail Kundinger, MMC City Clerk
General Contractor-Top Notch Design
Contractors
Dated: - - - - - - - By: _ _ _ _ _ _ _ _ _ _ _ _ __
Donald Beach
Its: Owner
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EXHIBITB
Legal Description
The City of Muskegon revised plat of 1903 Block 436 S 85 Ft Lots 17 & 18
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DATE: August 5, 2003
TO: Honorable Mayor and City Commissioners
FROM: Robert B. Grabinski, Director of Inspection Services
RE: Professional Services Agreement with Muskegon Charter Township
SUMMARY OF REQUEST: This is to request the city commission approve the attached
Professional Service Agreement between the City of Muskegon and Muskegon Charter
Township. This agreement is to allow the Inspection Services to conduct the electrical
inspections and plan reviews for Muskegon Charter Township on a contractual basis. It
is also requested that if approved, the commission authorize the Mayor and City Clerk to
sign the agreement.
STAFF RECOMMENDATION: To approve and authorize the Mayor and Clerk to sign
the attached service agreement after it has been approved by Muskegon Charter
Township officials.
CITY COMMISSION RECOMMENDATION: The commission will consider this item
at it's meeting held on Tuesday, August 12, 2003.
City of Muskegon
Professional Services Agreement
Electrical Inspections
Agreement made and entered into this _ _ day of _ _ _ _ _ _ _ _ by
and between the City of Muskegon, a Home Rule City (hereinafter referred
to as "City"), and Muskegon Charter Township, a Municipal Corporation
(hereinafter referred to as "Township").
1. It is agreed by the City and the Township that Electrical Inspection
Services shall be performed upon Township request under conditions
set by the Township.
a. The City shall receive 80% of the electrical permit fees
collected by the Township.
b. The City shall receive $35.00 per requested complaint
inspection of property not related to a permit.
c. Scheduling: Upon notification of a request for inspection, the
City Inspection Services Department will schedule accordingly.
d. Plan Review shall be paid at $35.00 per hour.
e. The Township will compensate the City monthly based on
permits issued, other work performed, and an invoice for plan
review fees.
2. The City will maintain the certifications of the Electrical Inspector(s)
as required by the State of Michigan in accordance with P.A. No. 54.
3. This agreement may be amended upon the mutual consent of both
parties.
4. It is understood that the Electrical Inspector(s) is/are employees of the
City and not the Township.
5. Liability insurance coverage shall be provided by the Township. To
the fullest extent permitted by law, Muskegon Charter Township
agrees to defend, pay in behalf of, and hold harmless the City of
Muskegon, its elected and appointed officials, employees, and
volunteers and others working in behalf of the City of Muskegon
against any and all claims, demands, suits, or loss, including all costs
connected therewith, and for any damages which may be asserted,
claimed or recovered against or from the City of Muskegon, its
elected and appointed officials, employees, volunteers, or others
working in behalf of the City of Muskegon by reason of personal
injury, including bodily injury and death and/or property damage,
including loss of use thereof, which arises out of or is in any way
connected or associated with this contract.
6. This agreement may be cancelled, upon written notification, within 30
days by either party for any reason.
In witness whereof, the parties hereto have signed this Agreement.
WITNESSES:
James Nielsen, Clerk Gail A. Kundinger, Clerk
Muskegon Charter Township City of Muskegon
P. Don Aley, Supervisor Stephen Warmington, Mayor
Muskegon Charter Township City of Muskegon
STATE OF MICHIGAN
COUNTY OF MUSKEGON
The foregoing instrument was acknowledged before me this _ _ day of
_ _ _ _ _ _,2003,by _ _ _ _ _ _ _ _ _ _ __
ioo':>- 'J.,,;~ ~
Commission Meeting Date: August 12, 2003
Date: July 16, 2003
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department Cf!f!_.
RE: Public Hearing for Amendments to Brownfield
Plan- Gillespie Development, Loft Properties, LLC
and Parmenter O'Toole
SUMMARY OF REQUEST: To hold a public hearing and approve the attached
resolution approving and adopting amendments for the Brownfield Plan. The
amendments are for the inclusion of property owned by Lakefront LLC (which will be
sold to Gillespie Development and Loft Properties, LLC and leased to Parmenter
O'Toole) in the Brownfield Plan.
FINANCIAL IMPACT: There is no direct financial impact in approving the Brownfield
Plan amendments, although the development of the offices, condominiums and retail
space, proposed by the owner/developers of the Edison landing site, will add to the
tax base of the City of Muskegon.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing and approve the attached
resolution and authorize the Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The Muskegon City Commission set the public
hearing for August 12, 2003, at their July 8, 2003 meeting. Since that time, a notice
of the public hearing has been sent to taxing jurisdictions, and it has been published
twice In the Muskegon Chronicle. In addition, the Brownfield Redevelopment
Authority approved the Plan amendment on July 7, 2003 and further recommends
that the Muskegon City Commission approve the Plan amendment.
2003- 63 (a)
RESOLUTION APPROVING THE BROWNFIELD PLAN AMENDMENT
City of Muskegon
County of Muskegon, Michigan
Minutes of a Regular Meeting of the City Commission of the City of Muskegon,
County of Muskegon, Michigan (the "City"), held in the City Commission Chambers,
on the 1 2tb day of August , 2003, at!i.;_3.Q__ o'clock p.m., prevailing Eastern
Time.
PRESENT: Members
Warrni~gton, Buie, Gawron, Larson, Schweifler, Shepherd, Spataro
ABSENT: Members
None
The following preamble and resolution were offered by Member
Schweifler and supported byMember_---"'B~u=i~e_ _ __
WHEREAS, in accordance with the provisions of Act 381, Public Acts of
Michigan, 1996, as amended ("Act 381"), the City of Muskegon Brownfield
Redevelopment Authority (the "Authority") has prepared and approved a Brownfield
Plan Amendment at its meeting of July 8, 2003; and
WHEREAS, the Authority has forwarded the Brownfield Plan Amendment to
the City Commission requesting its approval of the Brownfield Plan Amendment;
and
WHEREAS, the City Commission has provided notice and a reasonable
opportunity to the taxing jurisdictions levying taxes subject to capture to express
their views and recommendations regarding the Brownfield Plan, as required by Act
381; and
WHEREAS, not less than 20 days has passed since the City Commission
provided notice of the proposed Brownfield Plan to the taxing units; and
WHEREAS, the City Commission held a public hearing on the proposed
Brownfield Plan on August 12, 2003.
NOW, THEREFORE, BE IT RESOLVED, THAT:
1. Definitions. Where used in this Resolution the terms set forth below
shall have the following meaning unless the context clearly requires otherwise:
"Eligible Property" means the property designated in the Brownfield Plan as
the Eligible Property, as described in Act 381.
"Brownfield Plan" means the Brownfield Plan prepared by the Authority, as
transmitted to the City Clerk by the Authority for approval, copies of which
Brownfield Plan are on file in the office of the City Clerk.
"Taxing Jurisdiction" shall mean each unit of government levying an ad
valorem property tax on the Eligible Property.
2. Public Purpose. The City Commission hereby determines that the
Brownfield Plan Amendment constitutes a public purpose.
3. Best Interest of the Public. The City Commission hereby determines
that it is in the best interests of the public to promote the revitalization of eligible
properties in the City to proceed with the Brownfield Plan Amendment.
4. Review Considerations. As required by Act 381, the City Commission has,
in reviewing the Brownfield Plan Amendment, taken into consideration
whether the Brownfield Plan Amendment meets the requirements set forth in
Section 13 of Act 381.
5. Approval and Adoption of Brownfield Plan Amendment. The Brownfield
Plan Amendment as submitted by the Authority is hereby approved and
adopted. A copy of the Brownfield Plan and all amendments thereto shall be
maintained on file in the City Clerk's office.
6. No Capture of Tax Increment Revenues by Authority. The Authority shall
not capture Tax Increment Revenues on the Eligible Property, as described
in the Brownfield Plan Amendment.
7. Disclaimer. By adoption of this resolution and approval of the Brownfield
Plan Amendment, the City assumes no obligation or liability to the owner,
developer or lessor of the Eligible Property for any loss or damage that may
result to such persons from the adoption of this resolution and Brownfield
Plan Amendment The City makes no guarantees or representations as to
the determinations of the appropriate state officials regarding the ability of
the owner, developer or lessor to qualify for a single business tax credit
pursuant to Act 228, Public Acts of Michigan, 1975, as amended, or as to
the ability of the Authority to capture tax increment revenues from the State
and local school district taxes for the Brownfield Plan.
8. Repealer. All resolutions and parts of resolutions insofar as they conflict
with the provisions of this resolution be and the same hereby are rescinded.
AYES: Members
Buie, Gawron, Larson, Schweifler, Shepherd, Spataro, Warmington
NAYS:
Members---"-'-=-'~------------------------
None
RESOLUTION DECLARED ADOPTED.
I hereby certify that the foregoing is a true and complete copy of a resolution
adopted by the City Commission of the City of Muskegon, County of Muskegon,
State of Michigan, at a regular meeting held on August 12, 2003, and that said
meeting was conducted and public notice of said meeting was given pursuant to
and in full compliance with the Open Meetings Act, being Act 267, Public Acts of
Michigan, 1976, as amended, and that the minutes of said meeting were kept and
will be or have been made available as required by said Act.
L
Gail A. Kundinger, City Clerk
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN AMENDMENT
Original Plan Approved by the Board of the City of Muskegon Brownfield
Redevelopment Authority on February 23, 1998.
Original Plan Approved by the City Commission of the City of Muskegon on
April 14, 1998.
Amended by the Board of the City of Muskegon Brownfield Redevelopment
Authority on August 10, 1998
Amended by the City Commission of the City of Muskegon on August 11, 1998
Amended by the Board of the City of Muskegon Brownfield Redevelopment
Authority on June 13, 2000.
Amended by the City Commission of the City of Muskegon on July 11, 2000.
Amended by the Board of the City of Muskegon Brownfield Redevelopment
Authority on April 15, 2003.
Amended by the City Commission of the City of Muskegon on May 27, 2003.
Amended by the Board of the City of Muskegon Brownfield Redevelopment
Authority on July 7, 2003.
Amended by the City Commission of the City of Muskegon on August 12, 2003.
City of Muskegon Brownfield Plan Amendment
July 2003
CITY OF MUSKEGON
BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN
INDEX
I. INTRODUCTION
II. GENERAL PROVISIONS
A. Costs of the Brownfield Plan
B. Maximum Amount of Indebtedness
C. Duration of the Brownfield Plan
D. Displacement/Relocation of Individuals on
Eligible Properlies
E. Local Site Remediation Revolving Fund
Ill. SITE SPECIFIC PROVISIONS
A. Kirksey/Anaconda Property (Approved 4/14/98)
B. Dilesco Corporation Property (Approved 8/11/98)
C. Beacon Recycling (Approved 7/11/00)
D. Verplank Dock Company (Approved 5/27/03)
E. Gillespie Development Property (Approved _ _ _ __,
F. Loft Properties, LLC Property (Approved _ _ __,
G. Parmenter O'Toole Property (Approved _ _ _ _ __,
City of Muskegon Brownfield Plan Amendment
July 2003
II. GENERAL PROVISIONS
A Costs of the Brownfield Plan (Section 13(1)(a))
Any site-specific costs of implementing this Plan are described in the site-
specific section of the Plan. Site-specific sources of funding may include tax
increment financing revenue generated from new development on eligible
brownfield properties, state and federal grant or loan funds, and/or private
parties. Where private parties finance the costs of eligible activities under the
Plan, tax increment revenues may be used to reimburse the private parties. The
initial costs related to preparation of the Brownfield Plan were funded by the
City's general fund. Subsequent amendments to the Plan are funded by the
person requesting inclusion of a project in the Plan.
The Authority intends to pay for administrative costs and all of the things
necessary or convenient to achieve the objectives and purposes of the Authority
including, but not limited to:
i) the cost of financial tracking and auditing the funds of the Authority,
ii) costs for amending and/or updating this Plan, including legal fees, and
iii) costs for Plan implementation
with any eligible tax increment revenues collected pursuant to the Plan.
However, at this time, there are no properties included in this plan that will utilize
tax increment financing and therefore there are currently no tax increment
revenues to pay for these costs. As noted above, most costs related to the
preparation of Plan amendments are borne by the person requesting inclusion of
a project within the Plan.
B. Method for Financing Costs of Plan (Section 13(1)(d) and (e)))
The Authority does not intend at this time to incur debt, such as through the
issuance of bonds or other financing mechanisms. In the future, the City or
Brownfield Authority may incur some debt on a site-specific basis. Please refer
to the site-specific section of this Plan for details on any debt to be incurred by
the City or Authority. When a property proposed for inclusion in the Plan is in an
area where tax increment financing is a viable option, the Authority intends to
enter into Development Agreements with the property owners/developers of a
properties included in the Plan to reimburse them for the costs of eligible
activities undertaken pursuant to this Plan. Financing arrangements will be
specified in the Development Agreement, and also identified in the Site Specific
section of the Plan.
City of Muskegon Brownfield Plan Amendment
July 2003
I. INTRODUCTION
In order to promote the revitalization of commercial, industrial, and residential
properties within the boundaries of the City of Muskegon (the "City"), the City
established the City of Muskegon Brownfield Redevelopment Authority (the
"Authority") pursuant to Act 381, Public Acts of Michigan, as amended ("Act
381"), and a resolution adopted by the Muskegon City Commission on February
10,1998.
The major purpose of this Brownfield Plan ("Plan") is to promote the
redevelopment of eligible properties within the City that are impacted by the
presence of hazardous substances in concentrations that exceed Michigan's Part
201 Generic Cleanup Criteria Criteria ("facilities') or that have been determined
to be Functionally Obsolete or Blighted. Inclusion of property within this Plan can
facilitate financing of environmental response activities, infrastructure
improvements, demolition, lead or asbestos abatement, and site preparation
activities at eligible properties; and may also provide tax incentives to eligible
taxpayers willing to invest in revitalization of eligible properties. By facilitating
redevelopment of underutilized eligible properties, the Plan is intended to
promote economic growth fro the benefit of the residents of the City and all taxing
units located within and benefited by the Authority.
This plan is intended to be a living document, which can be amended as
necessary to achieve the purposes of Act 381. It is specifically anticipated that
properties will be continually added to the Plan as new projects are identified.
The Plan contains general provisions applicable to each site included in the Plan,
as well as property-specific information for each project. The applicable Sections
of Act 381 are noted throughout the Plan for reference purposes.
This Brownfield Plan contains the information required by Section 13(1) of Act
381, as amended. Additional information is available from the City Manager.
City of Muskegon Brownfield Plan Amendment
July 2003
C. Duration of the Brownfield Plan (Section 13(1)(())
The Plan, as it applies to a specific eligible property, shall be effective up
to five (5) years after the year in which the total amount of any tax increment
revenue captured is equal to the total costs of eligible activities attributable to the
specific eligible property, or thirty (30) years from the date of approval of the Plan
as it relates to an individual site, whichever is less. The total costs of eligible
activities include the cost of principal and interest on any note or obligation
issued by the Authority to pay for the costs of eligible activities, the reasonable
costs of a work plan or remedial action plan, the actual costs of the Michigan
Department of Environmental Quality's or Michigan Economic Growth Authority's
review of the work plan or remedial action plan, and implementation of the
eligible activities.
D. Displacement/Relocation of Individuals on Eligible Properties
(Section 13(1)i, j,k,I))
At this time, eligible properties identified in this Plan do not contain
residences, nor are there any current plans or intentions by the City for
identifying eligible properties that will require the relocation of residences.
Therefore the provisions of Section 13(1)(i-l) are not applicable at this time.
E. Local Site Remediation Revolving Fund (Section 8; Section 13(1)(m))
At the time this Plan includes a property for which taxes will be captured
through the increment financing authority provided by Act 381, it is the Authority's
intent to establish a Local Site Remediation Revolving Fund ("Fund"). The Fund
will consist of tax increment revenues that exceed the costs of eligible activities
incurred on an eligible property, as specified in Section 13(5) of Act 381. Section
13(5) authorizes the capture of tax increment revenue from an eligible property
for up to 5 years after the time that capture is required for the purposes of paying
the costs of eligible activities identified in the Plan. It is the intention of the
Authority to continue to capture tax increment revenues for 5 years after eligible
activities are funded from those properties identified for tax capture in the Plan.
The amount of school operating taxes captured for the Revolving Fund will be
limited to the amount of school operating taxes captured for eligible activities
under this Plan. It may also include funds appropriated or otherwise made
available from public or private sources.
The Revolving Fund may be used to reimburse the Authority, the City, and
private parties for the costs of eligible activities at eligible properties and other
costs as permitted by Act 381. It may also be used for eligible activities on
eligible properties for which there is no ability to capture tax increment revenues.
The establishment of this Revolving Fund will provide additional flexibility to the
Authority in facilitating redevelopment of brownfield properties by providing
another source of financing for necessary eligible activities.
City of Muskegon Brownfield Plan Amendment
July 2003
SITE SPECIFIC PROVISIONS
E. Gillespie Development
Eligibility and Project Summary (Sec. 13(1 )(h))
Gillespie Development intends to acquire Lots J, K, L, and M of the Muskegon
SmartZone, a site condominium known as Edison Landing located in downtown
Muskegon ("Gillespie Property"). A Legal Description and map of the Gillespie
Property is included in Attachment E-1.
A Baseline Environmental Assessment and Due Care compliance analysis
conducted pursuant to Part 201 of Michigan's Natural Resources and
Environmental Protection Act is currently being prepared for the Gillespie
Property on behalf of Muskegon Lake, L.L.C. through Muskegon's CMI
Brownfield Redevelopment Grant. The Property is also part of the "facility"
addressed by a Remedial Action Plan (RAP) prepared on behalf of TOY
Industries for the former Continental Motors/Teledyne site. The BEA and RAP
both conclude that the property is a "facility" pursuant to Part 201, and is
therefore an eligible properly pursuant to Act 381. This eligible properly includes
all personal property.
The planned Gillespie project spans 4 (four) lots on the 16-lot Edison Landing
project. Called "The MarketPlace at Edison Landing", the development will
include residential, commercial, retail, and office uses. Current plans envision 50
residential units, 4-5 restaurants/bistros, banks, an art studio, day spa/salons, a
gym, and offices. Pending completion of the Shoreline Drive extension,
Gillespie intends to initiate site preparation in Fall 2003. Based on the estimated
2 2
square footage to be constructed (46,800 ft residential, 33,400 ft commercial),
Gillespie estimates that approximately 266 new jobs will be created by this
project. These positions will be concentrated in the restaurants and bank; a
smaller number of positions will be created by the tenants in the main
commercial buildings. Current estimates indicate that this project will involve
over $10 million in private investment.
Eligible Activities, Financing, Cost of Plan (Sec. 13(1)(a),(b),(c),(d),(g))
Eligible activities that have been conducted on the property include additional
response activities through implementation of a RAP; and preparation of a
Baseline Environmental Assessment and Section 7a (Due Care) Compliance
Analysis. Future eligible activities would likely be related to Due Care response
activities, which may be funded by the CMI Brownfield Grant. Therefore, there
are no eligible costs proposed to be financed with tax increment revenues.
Further, the property is in the LDFA District thereby making brownfield tax
increment financing unavailable. As such, there are no costs to the City of
City of Muskegon Brownfield Plan Amendment
July 2003
Muskegon or its taxing jurisdictions as a result of the Gillespie Property being
included in this Plan.
Single Business Tax Credit
The Gillespie Property is included in the Plan to enable "qualified taxpayers" as
defined by Act 228 of 1975, as amended, to avail themselves of eligibility for a
credit against their Michigan single business tax liability for "eligible investments"
as defined by P.A. 228. "Eligible investments" include demolition, construction,
restoration, alteration, renovation, or improvement of buildings or site
improvements on eligible property and the addition of machinery, equipment, and
fixtures to eligible property after the effective date of this Plan Amendment.
Effective Date of Inclusion in Brownfield Plan
The Gillespie Property was added to this Plan on _ _ _ _ _ 2003.
City of Muskegon Brownfield Plan Amendment
July 2003
ATTACHMENT E-1
SITE MAP, LEGAL DESCRIPTION
GILLESPIE DEVELOPMENT PROPERTY
l!!;t fltf.5{~?'
-~•,"· ~,- ·:,,~:/,;:,)H:'_,· ...;;.i;;;.fif,-,..,,,.W,
\;4i":::t~"'f9-'1i>fw/4.;" Mtiske 1
~~
New Business-31
,:'li,:,E,l.;,Q:Q'Q Q ,,\;;cc'.Q:.Q'.6,,'Gll::Q-: a::,.,a.,a':&:
UNIT SQUARE FT. - ' - USE ,. - - i_ >"-" ' "''!':;,·,:•;/:,' j ~ ,-' '~ " " ~
A' 30,000 Residential Sale Pending
B 30,000 . · Residential Sale Pending
C 25,000 Grand Valley State University SOLD
D .. 40,000 Office $500,000
E 40,000 Office $500,000
F 6,500 . Retail & Restaurant $195,000
G '' 18,500 Retail & Restaurant $525,000
H- 20,000 Parmenter O'Toole SOLD
y 20,000 Office $600,000
'-/J' 22,000 Retail, Office & Residential Sale Pending
<:::K•:, 22,000 · Retail, Office & Residential Sale Pending
L 4,500 ·_ Retail, Office & Residential Sale Pending
M 4,500 Residential Sale Pending
N. 14,000 Retail & Restaurant $750,000
',O . Residential (condominiums) $1,190,000
p 3,000 · Convenience Store I Gasoline $495,000
All prices subject to change without notice. Contact broker for current prices
,.,.~ .. --~.--"
r~2=~:C..:Cic:c:cc:c.i=,,'2~,Si.c;'lcc'.::~~.·E£D__ l:S OYN _ ,L.A. N D I N G
,,::~~-- business development incentives. Each site within the SmartZone is qualified
components. • to be designated as a "Brownfield," which translates into a time-limited
· _ .- _·: : opportunity to receive a Single Business Tax Credit equal to 10% of the
Featuring 34 acres of land with Muskegon Lake on one side and new · ·· purchaser's eligible investment at the site. Commercial businesses locating
Business 31 on the other, Edison Landing presents a unique development within this Enterprise Community Zone before the end of 2004 are eligible to
opportunity. The developer, Lakefront Development, LLC, has divided this · receive a substantial five-year tax abatement. In addition, Michigan law
parcel into .16 site condominium units ranging from 0.8 to over 6 acres. One of" . provides for 12-year; 50% property tax abatements for certain high-tech
the parcels will house the new home of Parmenter O'Toole, the. largest law- •. ···-research. and development offices and engineering buildings located within
firm along the lakeshore. On another parcel, Grand Valley State University. the SmartZone. Finally, 6ecause of the City's status as an Enterprise
will operate an energy-related research · and develof)ment facility and a·· Community, commercial construction projects of up to $3 million may be
business incubator closely linked to its business and engineering schools. The financed with tax-exempt revenue bonds. As part of a Local Development
remaining sites are available for construction of buildings with uses consistent . Finance Authori(Ycb nearly all of the property tax revenue generated from this
with the Planned Unit Development already approved by the City of . ·.. SmartZone must e utilized on the site
Muskegon. The master deed and Bylaws of the site condominium will provide . · .
for many open areas, including th~ "'.Vaterfront, .w~ich "'{ill all9w f~r ac9ess.from .. Locating in Edison Landing offers additional b~nefi)s: This is the only
both land and water. The conaomImum association will maintain stnct control . · waterfront SmartZone and tne only SmartZone with direct access to Lake
over both the uses and architectural design of each of the buildings to be - Michigan. In addition, Edison Landing is on a major traffic route in a
constructed, ensuring a harmonious look for Muskegon's new downtown. · -. · - Metropolitan Statistical Area with one of tfle highest growth rates in the United
. _ .•.· States and a population of our MSA exceeding one million people.
It is easy to look at the site and see just the beautiful waterfront butthe ·
impact and importance of Shoreline Drive is significant. The Michigan _.· It. has been. decades since the Muskegon lakeshore could be developed.
Department of Transportation has approved the reairection of existing traffic · Now1 Edison Landing offers developers the first opportunity in generations to
from Webster and Muskegon Avenues to the new Shoreline Drive,,_ wnIch will · ·. buila along the beautiful Muskegon Lake shoreline,. they can -do so with the
be designated as Business U.S. 31. Once completed, Shor.eline urive traffic added benefits of new Business 31 and the SmartZone.
SmartZone'" ia a service mark of the Michiaan EconomicDeveloomentCorooration.
City of Muskegon Brownfield Plan Amendment
July 2003
LEGAL DESCRIPTION
GILLESPIE DEVELOPMENT PROPERTY
The land is situated in the City of Muskegon, County of Muskegon, State of
Michigan and described as follows:
Units J, K, L, and M, Muskegon Lakeshore Smart Zone, a Site Condominium,
according to the Master Deed dated October 10, 2002, recorded October 11,
2002 in Liber 3503. Page 491, Muskegon County Records, and designated as
Muskegon County Condominium Subdivision Plan No. 100, together with the
rights in general common elements and limited common elements as set forth in
the above Master Deed and as described in Act 59 of the Public Acts of 1978, as
amended.
City of Muskegon Brownfield Plan Amendment
July 2003
SITE SPECIFIC PROVISIONS
F. Loft Properties, LLC
Eligibility and Project Summary (Sec. 13(1)(h))
Loft Properties, LLC intends to acquire Lots A and B of the Muskegon Lakeshore
SmartZone, a site condominium known as Edison Landing located in downtown
Muskegon ("Loft Property"). A legal Description and map of the Loft Property is
included in Attachment F-1.
Several eligible activities have been conducted on the Loft Property. A Baseline
Environmental Assessment (BEA) and Due Care compliance analysis pursuant
to Part 201 of Michigan's Natural Resources and Environmental Protection Act
were conducted on the Property to facilitate its acquisition by Lakefront
Development LLC. A BEA will also be prepared on behalf of Loft Properties, LLC
prior to acquisition. The Property is also part of the "facility" addressed by a
Remedial Action Plan (RAP) prepared on behalf of TOY Industries for the former
Continental Motors/Teledyne site. The BEA and the RAP both conclude that the
Property is a "facility" pursuant to Part 201, and is therefore an eligible property
pursuant to Act 381. This eligible property includes all personal property.
Loft Properties, LLC intends to construct a 72-unit residential condominium
development on Lots A and B of Edison Landing. It is estimated that 10 new jobs
would be created by this development, with a capital investment of approximately
$1 O million. After completion of the Shoreline Drive East extension (estimated
Fall 2003), the project timetable calls for 4 phases of the project to be
constructed over a 5-year period.
Eligible Activities, Financing, Cost of Plan (Sec. 13(1)(a),(b),(c),(d),(g))
Eligible activities that have been conducted on the Property include preparation
of a Baseline Environmental Assessment and Section 7a (Due Care) Compliance
Analysis, and implementation of additional response activities as part of a RAP.
Future eligible activities on the Property will include preparation of a BEA on
behalf of Loft Properties LLC, and Due Care response activities, which may be
funded by the Muskegon CMI Brownfield Grant. Therefore, there are no eligible
costs proposed to be financed with tax increment revenues. Further, the
Property is in the LDFA District thereby making brownfield tax increment
financing unavailable. As such, there are no costs to the City of Muskegon or its
taxing jurisdictions as a result of the Loft Properties, LLC Property being included
in this Plan.
City of Muskegon Brownfield Plan Amendment
July 2003
Single Business Tax Credit
The Loft Property is included in the Plan to enable "qualified taxpayers" as
defined by Act 228 of 1975, as amended, to avail themselves of eligibility for a
credit against their Michigan single business tax liability for "eligible investments"
as defined by P.A. 228. "Eligible investments" include demolition, construction,
restoration, alteration, renovation, or improvement of buildings or site
improvements on eligible property and the addition of machinery, equipment, and
fixtures to eligible property after the effective date of this Plan Amendment.
Effective Date of Inclusion in Brownfield Plan
The Loft Properties, LLC Property was added to this Plan on _ _ _ _ _2003.
City of Muskegon Brownfield Plan Amendment
July 2003
ATTACHMENT F-1
Site Map, Legal Description
Loft Properties, LLC Property
---------
.. 'NSW:sTisiness:11--,.
\t)1;t~Q,;Qf,:6».:GJ:;g~;;a?:Z-LG: ,;a;:~czi;}&:tr~\;{~>(Q'.i;'fu,4{4,· :;..4·:· 9 -4-4 'A '
/:\:;;(\,·,'.>.\:: . ' .. '.
'-~[,"'
UNIT SQUARE FT. USE " . • ,• , •. lr-llTIAtlO]j~lf{~~!ii!lfil\
:30,000 :. Residential Sale Pendin.9.
30,000 " Residential Sale Pendin.9.
. 25,0.00" Grand Valley State University SOLD
40,000 Office $500,000
40,000. Office $500,000
..F: . 6,500 ·· Retail & Restaurant $195,000
G: -18,500 • Retail & Restaurant $525,000
H. . 20,000 -Parmenter O'Toole SOLD
I 20,000 Office $600,000
·•VJ 22,000 - Retail, Office & Residential Sale Pending
•·-K· 22,000 Retail, Office & Residential Sale Pending_
L 4,500 Retail, Office & Residential Sale Pending_
M 4,500 Residential Sale Pendin_g
N 14,000 Retail & Restaurant $750,000
0 Residential (condominiums) $1,190,000
p 3,000 Convenience Store I Gasoline $495,000
All prices subject to change without notice. Contact broker for current prices
.Ei::D::LS,_:O.N:L.. L.cA.N_.D . 1· N .G
T H E O"Ji";'[~, ~t
In the spring of 2001, Muskegon joined an elite group of 11 Michigan: : .is expected to exceed 20,000 vehicles per day. This will make Shoreline Drive
communities receiving a SmartZone designation from the State of Michigan. ;: Muskegon's main roadway, a gateway to downtown Muskegon and Muskegon
The Muskegon Lakes~ore Smartzqne, called Edison Landin_g, is ~ Joint : Lake.... · · . . , ._ · . · ·
venture between the private and public sector to re-develop a critical piece of ..:· :: · .: ., ,.. · .. . ..• •
Downtown Muskegon's shoreline as a mixed-use development that includes',, ..Participation in Edison Landing is sul)ported by the aggressive use of
residential, commercial, retail,· office/commercial .and recreational i ,b.usiness development incentives..Each site within the Smartzone is qualified
components. · : to be designated as a "Brownfield," which translates into a time-limited
. , . ·, opportuni!}'. to receive a Single Business Tax Credit equal to 10% of the
Featuring 34 acres of land with Muskegon Lake on one side . and new:- . purchasers. eligible investment at the site. Commercial businesses locating
Business. 31 on the other, Edison Landing presents a unique d~vE!llopme(lF . ·· withi)1 this Enterpri~e C9mmunity Zone before the end of .~004 ar/3 eiligible to
opportyrnty. Th!) develop~r,. Lakefront D~velopment, LLC, has d1v1ded this-::; •· rece!ve · a substantial five-year tax abatement. In addition, ~1ch1gan law
parcel into 16 site condominium urnts ranging from 0.8 to over 6 acres. One of•·.:.: :•. prov1des., . for 12-year, 50%. property tax abatements for certain high-tech
the parcels will house the new home of Parmenter O'Toole, the largest law , : ; research and development, offices and engineering buildings located within
firm along the lakeshore. On another parcel, Grand Valley State University:,. the,SmartZone. · Finally, because of the City's status as an Enterprise
will . oper<1.te an energy-re!ated re~earch. and developmenr facility and ·a:: ,:Qommunity, commercial construction projects of up to $3 million may be
business incubator closely linked to its business and engineering schools. The ., : ,• financed with taxaexempt revenue bonds. As part of a Local Development
remaining sites are available for construction of buildings with uses consistent. .· Finance Authorityb nearly all of the property tax revenue generated from this
with the Planned Unit Development already. approved. ~y thei City_ of ' SmartZo[le must e utilized on the site .
Muskegon. The master deed and Bylaws of the site condomIrnum will provide •·. : ,. , · · · - ... - ·.
for many open areas, including the waterfront, which will allow for access from .· Locating in Edison Landing offers additional benefits: This is the only
both land and water. The conaominium association will maintain strict control waterfront Smartzone and tfle only SmartZone with direct access to Lake
over both the uses and architectural design of each of the buildings to be Michigan. In addition, Edison Landing is on a major traffic route in a
constructed, ensuring a harmonious look for Muskegon's new downtown. ; •.·•. ·: · Metropolitan Statistical Area with one of tfle highest growth rates in the United
· ..·. States and a population of our MSA exceeding one million people.
It is easy to .look at the site and ::;ee ju~t th\3 beiau\iful waterfront put; the .. . ·. ·. . · .
impact and importance of Shoreline Dnve Is s1grnf1cant. The M1ch1gan It has been· decades. since the Muskegon lakeshore could be developed.
Department of Transportation has approved the redirecti9n of !)Xisting tra.ffi_c• . .· ·. -.· Nqwi:i. Edis.on La.nding _.offers developers the first 9pportunity in generati9ns to
from Webster and Muskegon Avenues to the new Shoreline Dnve,_ wti1ch w111. ·- .: ·... bu1I along the beautiful Muskegon Lake shoreline, they can do so with the
be designated as Business U.S. 31. Once completed, Shoreline urive traffi~ :. ; .added benefits of new Business 31 and the Smartzone. .
SmartZone'M ia a service mark of the Michigan EconomicDeveloomentCorooration.
City of Muskegon Brownfield Plan Amendment
July 2003
LEGAL DESCRIPTION
PARMENTER O'TOOLE PROPERTY
The land is situated in the City of Muskegon, County of Muskegon, State of
Michigan and described as follows:
Unit H, Muskegon Lakeshore Smart Zone, a Site Condominium, according to the
Master Deed dated October 10, 2002, recorded October 11, 2002 in Liber 3503.
Page 491, Muskegon County Records, and designated as Muskegon County
Condominium Subdivision Plan No. 100, together with the rights in general
common elements and limited common elements as set forth in the above
Master Deed and as described in Act 59 of the Public Acts of 1978, as amended.
~~~--·,---=--- ~---------tE::otl . s_io _ N•.-iL_,A_"_N- (ll _ ._N_ G
THE
In the spring of 2001, Muskegon,joined an elite groui:i of 11 Michigan is expected to exceed 20,000 vehicles per day. This will make Shoreline Drive
communities receiving a Smartzone designation from the State of Michigan. _ Muskegon's main roadway, a gateway to downtown Muskegon and Muskegon
The Muskegon Lakeshore Smartzone, called Edison Landing, is a Joint Lake.
venture between the private and public sector to re-develop a crifical piece of
Downtown Muskegon's shoreline as a mixed-use development that includes __ Participation in Edison Landing is sul)ported by the aggressive use of
residential, commercial, retail, office/commercial and recreational -- -business development incentives. Each site within !he Smartzone is qualified
components. to be designated as a "Brownfield," which translates into a time-limited
_ opportuni!Y- to receive a Single Business Tax Credit equal to 10% of the
Featuring 34 acres of Jang, with Muskegon Lake on one side and new_--__ ·•- -purchasers eligible investment at the site. Commercial businesses locating
Business 31 on the other, t:dison Landing presents a unique development _ within this Enterprise Community Zone before the end of 2004 are eligible to
opportunity. The developer, Lakefront Development, LLC, has divided this - receive_ a substantial five-year tax abatement. In addition, Michigan law
parcel into 16 site condominium units ranging from 0.8 to over 6 acres, One of,,_ provides for 12-year, 50% property tax abatements for certain high-tech
the parcels will house the new home of Parmenter O'Toole, the largest law , -research and developmentboffices and engineering buildings located within
firm along the lakeshore. On another parcel, Grand Valley State Lrniversity. the Smartzone. Finally, _ ecause of the City's status as an Enterprise
will operate an energy-related research and develol)ment facility and
business incubator closely linked to its business and engineering schools. The
a - -,
Community, commercial construction projects of up to $3 million may be
financed with tax-exempt revenue bonds_ As part of a Local Development
remaining sites are available for construction of buildings with uses consistent Finance Authorityb nearly all of the 1:>roperty tax revenue generated from this
with the Planned Unit Development already approved by the City of SmartZone must e utilize_d on the site
Muskegon. The master deed and Bylaws of the site condominium will provide .-_ ,_ _
for many open areas, including the waterfront, which will allow for access from ' Locating in ,Edison Landing offers additional benefits: This is the only
both land and water. The condominium association will maintain strict control --- waterfront Smartzone and tfie only SmartZone with direct access to Lake
over both the uses and architectural design of each of the buildings to be - Michigan. _In addition Edison Landing is on a major traffic route in a
constructed, ensuring a harmonious look for Muskegon's new downtown. Metropolitan Statistical Area with one of tfie highest growth rates in the United
States and a population _of our MSA exceeding one million people.
It is easy to look at the site and see jJJst the beautiful waterfront out the
impact and importance of Shoreline Drive is significant. The Michigani It has been decades since the Muskegon lakeshore could be developed.
Department of Transportation has approved the redirection of existing traffic Now, Edison Landing offers developers the first opportunity in generations to
from Webster and Muskegon Avenues to the -new Shoreline Drive,_ wnIch will buila along the beautiful Muskegon Lake shoreline, they can do so with the
be designated as Business U.S. 31. Once completed, Shoreline urive traffic added.benefits of new Business 31 and the Smartzone_
SmartZone'" ia a service mark of the Michigan Economic Development Corporation.
-----------
UNIT - SQUARE FT-~ ~ ,;- -- ·:::1-~.'·u·ss~- i:-:t;:: ,:;;r..:;,,::::4-;"-;('t-"l~•:'"':'.-;1-";''f:!liNIJJA•i<'a L~i'i'"i"""''"'·~"''-:,
• • 'J") - ,-;"--• -:,.."'-. ~ • - _,~' •~ -~-!:,,~ ~o=eottice $600,000
· /Retail,:Office & Residential Sale Pendin.9.
. : Retail, Office &•Residential Sale Pendin.9.
· ·• ·Retail, Office.& Residential •Sale Pendin.9.
Residential Sale Pendin.9.
. Retail & Restauranf. . · $750,000
Residential (condominiums) · $1,190,000
City of Muskegon Brownfield Plan Amendment
July 2003
ATTACHMENT G-1
Site Map, Legal Description
Parmenter Property
City of Muskegon Brownfield Plan Amendment
July 2003
Further, the Property is in the LDFA District thereby making brownfield tax
increment financing unavailable. As such, there are no costs to the City of
Muskegon or its taxing jurisdictions as a result of the Parmenter Property being
included in this Plan.
Single Business Tax Credit
The Parmenter Property is included in the Plan to enable "qualified taxpayers" as
defined by Act 228 of 1975, as amended, to avail themselves of eligibility for a
credit against their Michigan single business tax liability for "eligible investments"
as defined by P.A. 228. "Eligible investments" include demolition, construction,
restoration, alteration, renovation, or improvement of buildings or site
improvements on eligible property and the addition of machinery, equipment, and
fixtures to eligible property after the effective date of this Plan Amendment.
Effective Date of Inclusion in Brownfield Plan
The Parmenter Property was added to this Plan on ------'2003.
City of Muskegon Brownfield Plan Amendment
July 2003
SITE SPECIFIC PROVISIONS
G. Parmenter O'Toole
Eligibility and Project Summary (Sec. 13(1 )(h))
Parmenter O'Toole intends to lease Unit H of the Muskegon SmartZone, a site
condominium known as Edison Landing located in downtown Muskegon
("Parmenter Property") from an entity that will be owned by the shareholders of
Parmenter O'Toole. A Legal Description and map of the Parmenter Property is
included in Attachment G-1.
Several eligible activities have been conducted on the Parmenter Property. A
Baseline Environmental Assessment (BEA) and Due Care compliance analysis
pursuant to Part 201 of Michigan's Natural Resources and Environmental
Protection Act were conducted on the Parmenter Property to facilitate its
acquisition by Lakefront Development LLC. A BEA will also be prepared on
behalf of Parmenter O'Toole prior to execution of its lease. The Parmenter
Property is also part of the "facility" addressed by a Remedial Action Plan (RAP)
prepared on behalf of TOY Industries for the former Continental Motorsrreledyne
site. The BEA and the RAP both conclude that the Parmenter Property is a
"facility" pursuant to Part 201, and is therefore an eligible property pursuant to
Act 381. This eligible property includes all personal property.
The planned Parmenter project involves the construction of the law offices of
Parmenter O'Toole. The building will contain approximately 20,000 square feet
of office space. Pending completion of the Shoreline Drive extension and the
infrastructure improvements within Edison Landing, Parmenter intends to initiate
site preparation in Fall 2003. Parmenter currently employs 38 FTE's, which will
relocate from their current Apple Ave. location to the Edison Landing site.
Parmenter also estimates that it will employ an extra four (4) to eight (8) people
following the relocation to its new offices. These positions will include attorneys,
paralegals, legal secretaries, administrative personnel and support staff. Current
estimates indicate that this project will involve over $4 million in private
investment.
Eligible Activities, Financing, Cost of Plan (Sec. 13(1)(a),(b),{c),{d),{g))
Eligible activities that have been conducted on the Parmenter Property include
preparation of a Baseline Environmental Assessment and Section 7a (Due Care)
Compliance Analysis, and implementation of additional response activities as
part of a RAP. Future eligible activities on the Parmenter Property will include
preparation of a BEA on behalf of Parmenter O'Toole and Due Care response
activities, which may be funded by the CMI Brownfield Grant. Therefore, there
are no eligible costs proposed to be financed with tax increment revenues.
City of Muskegon Brownfield Plan Amendment
July 2003
LEGAL DESCRIPTION
LOFT PROPERTIES, LLC PROPERTY
The land is situated in the City of Muskegon, County of Muskegon, State of
Michigan and described as follows:
Units A & B, Muskegon Lakeshore Smart Zone, a Site Condominium, according
to the Master Deed dated October 10, 2002, recorded October 11, 2002 in Liber
3503. Page 491, Muskegon County Records, and designated as Muskegon
County Condominium Subdivision Plan No. 100, together with the rights in
general common elements and limited common elements as set forth in the
above Master Deed and as described in Act 59 of the Public Acts of 1978, as
amended and together with those riparian rights appurtenant to Unit A and 8
owned by Seller as determined by survey.
Date: August 5, 2003
To: Honorable Mayor and City Commissioners
From: Ken James, Affirmative Action Director
Re: Disadvantaged Contractor Recommendations
Summary of Request:
To approve the attached list of recommendations to the City's bid proposal
process.
Financial Impact:
None
Budget Action Required:
None
Staff Recommendation:
Staff recommends approval (The City's Equal Opportunity Committee
approved this document on 6/23/03)
Committee Recommendation:
NA
.-· PARMENTER a-TOOLE
Attomqs at Law
175 West Apple Avenue • P.O. Box 786 • Muskegon, Michigan 49443-0786
Phone 231.722.1621 • Fax 231.722.7866 or 231.728.2206
www.Parmenterlaw.com
July 3, 2003
Ken James, Affirmative Action Director
City of Muskegon
933 Terrace
P.O. Box 536
Muskegon, MI 49443-0536
Dear Mr. James:
You requested our opinion regarding the recommendations to amend sections of the bid proposal
process, a copy of which is attached. I presume this applies to all bids for construction projects
regardless of which department is overseeing the project. The only changes arising from the
amendments are the inclusion of paragraphs· la, le, and 7.
The amendments would:
1. Require contractors to contract disadvantaged subcontractors or explain why the
disadvantaged subcontractors were not contacted;
2. Provide bid approval authority to the Affirmative Action Director for the purpose of
ensuring that City regulations were followed; and
3. Add the Urban League to the list of bid document holders.
While there is no legal impediment, you may wish to consider the following:
1) You may wish to define "disadvantaged contractor" so that contractors and
subcontractors can comply;
2) You may wish to treat the Urban League as you do any other bid holder.
If you have any other questions, please feel free to contact me.
Very truly yours,
") c\_ "'-- C . SC ti~'-'
John C. Schrier
Direct: 231.722.5401
Fax: 231.728.2206
E-Mail Address: jcs@parmenterlaw.com
Attachment
Last Updated, August 5, 2003
Disadvantaged Contractor Recommendations
1. Bid contract changes
a. Disadvantaged Contractor Affidavit
b. Diversity Participation and Local Employment Effort
c. Affirmative Action Director review oflowest responsible bidder
2. Bidder list information
3. County Wide Certification
4. List of Local Disadvantaged Contractors*
5. Best practice efforts of other communities
6. Scope of project breakdown
7. Urban League as a bid document holder
Definition: Disadvantaged Contractor
For the purpose of this document a disadvantaged contractor refers to businesses that are
owned and controlled by minorities, women, and other socially and economically
disadvantaged persons. The overall goal is to create a level playing field on which
disadvantaged contractors can compete fairly for contracts and sub-contracts with the
City of Muskegon.
Introduction
The Affirmative Action Department recommends seven changes concerning the City of
Muskegon's current bid proposal process. By implementing the recommended changes
the City will be able to enhance its bidding process to include more participation from
disadvantaged business professionals .
.L Bid contract changes:
a. Disadvantaged Contractor Affidavit
The recommendation is that a disadvantaged contractor affidavit be added to the City of
Muskegon current bidding forms. This affidavit would require all bidders to list all
disadvantaged contractors that were contacted to participate on the project as sub-
contractors. The bidder must clearly state which disadvantaged contractors were
contacted and, if not considered, the reason why.
b. Diversity Participation and Local Employment Effort
The recommendation is that attention is called to pages "v" and "vi" under the Invitation
for Bids section, and page 55 of part 3, section 2, Affirmative Action to Ensure Equal
Employment Opportunity. This department further recommends that City language
includes that Qualified Disadvantaged Contractors must be considered on City projects
and Prime Contractors/Bidders must consider utilizing Disadvantaged Contractors as sub-
contractors on City projects.
c. Affirmative Action Director Review of lowest responsible bidder
The recommendation is that any lowest responsible bidder referred to the City
Commission by any City Department includes the approval of the Affirmative Action
Director. This is to ensure that all regulations were met by the bidder during the bid
process.
2. Bidder list information:
The recommendation is that an official list of all bid holders be maintained in City
Clerk's office. The list should include name of business, contact person, business
address, telephone number, fax number, and email address if applicable. This
information is to be available upon request to any individual wishing to be considered as
sub-contractor.
.1. County Wide Certification:
This department recommends that the City of Muskegon continues to work with other
county agencies in formalizing a certification process.
4. List of Local Disadvantaged Contractors:
The Affirmative Action Department will maintain an accurate list of local disadvantaged
contractors and this same list will be provided to all bid holders.
Please note, once the County Wide Certification process is complete, the Affirmative
Action Department will maintain a certified list of local disadvantaged contractors.
~ Best practice efforts of other communities:
The Affirmative Action Department will remain abreast of new practices and current
trends utilized by other communities that may enhance our efforts. If deemed necessary,
new recommendations will be made.
6. Scope of project breakdown:
The City of Muskegon will continue to include on its construction sheets all jobs broken
down by job specification. This is to ensure that sub-contractors can know the specific
needs of the project and focus their particular trade.
7. Urban League as a bid document holder:
The recommendation is that the Urban League of Greater Muskegon, located at 425
Catawba, Muskegon, MI, 49442, is named as a bid document holder. Bids mailed to the
Urban League are for viewing purposes only. Anyone interested in bidding on a City of
Muskegon project must pick up bidding forms from the City Clerk's office. By naming
the Urban Leagues as a bid holder, bid documents will be available for view at the City of
Muskegon in the Clerk's, Engineer's, and Affirmative Action offices, as well as the
Urban League of Greater Muskegon.
Adopted by the Equal Opportunity Committee on, June 23, 2003
Chahperson
Approved by the Muskegon City Commission on, August 12, 2003 _ _ _ _ _ _ __
Mayor
INVITATION FOR BIDS
CITY OF MUSKEGON, MICHIGAN
Project Title H-1564 NIMS ST. & IRWIN AVE., WOOD ST. TO GETTY ST.
The City of Muskegon, Michigan will receive sealed bids until 2:00 p.m. local time on May 20,
2003 at the City Clerk's Office, City Hall 933 Terrace Street, Muskegon, Michigan, at which time
and place all bids will be publicly opened and read aloud for the following Project:
*Items of work include:
Asphalt: 7,495 Sq. Yd. Aggregate Base Course 22A @8" C.I.P.; 1,838 Tons Various Bit
Mix (3C@ 165#/Sq. Yd. & 4C Mod. Polymer Asphalt@ 220#/Sq. Yd.); 4,910 Lin. Ft.
Concrete Curb & Gutter F-4 Mod.; 1,972 Cu. Yd. Excavation; 7,130 Sq. Yd. Removing
Pavement; and other related items (Engineer's estimate is $324,104.30)
or:
Concrete: 270 Tons Various Bit. Mix (3C@ 165#/Sq. Yd. & 4C Mod. Polymer Asphalt@
220#/Sq. Yd.); 8,555 Sq. Yd. Concrete Pavement w/6" Integral Curb Non-Reinforced;
1,047 Cu. Yd. Excavation; 7,130 Sq. Yd. Removing Pavement; and other related items
(Engineer's estimate is $426,419.30)
Copies of Plans and Specifications may be obtained on or after, May 5, 2003 by depositing $25
with the City Clerk for each set. Deposit will be refunded if Documents are returned in good
condition within 10 days after Bid Opening. An amount equal to five percent (5%) of the Bid
must be submitted with each Bid Proposal in one of three forms acceptable to the City of
Muskegon. Contract documents may be examined at the following locations:
Builders & Traders Exchange, Grand Rapids
F.W. Dodge Publishers, Grand Rapids
City Engineer's Office, Muskegon City Hall
Attention is called to the fact that the City requires: that the Contractor consider hiring local
work force insofar as possible; that not less than the salaries and wages set forth in the
Specifications must be paid; that 14% minority and 6.9% female are the goals established for
participation in each trade; that the Contractor must ensure employees and applicants for
employment are not discriminated against based upon their race, creed, color, religion, sex,
national origin, handicapped condition nor veteran background; and that all pertinent regulations
must be complied with. No bid may be withdrawn within sixty (60) days after bid opening.
:he City of Muskegon reserves the right to reject any or all bids or to waive any informalities or
irregularities in the bidding.
· A Pre-Bid Conference will be held in the second floor conference room (Rm. 203) at City Hall,
at 10: 00 a.m. on May 13, 2003, at which time and place any questions regarding this Project
should be presented. Minutes from said Pre-Bid Conference will become and Addendum to the
Contract.
CITY OF MUSKEGON, MICHIGAN
By: Gail A. Kundinger, City Clerk
PUBLISH: May 3, 2003
1frhe City ·11 . ADA POLICY . . .
~a<',~~(Uo. ta ~s provide ~ecess~ry a?propriate auxilliary aids services, for example, signers for the hearing impaired,
· rs noi' tfor th e v_,sually impaired, etc .. for disabled persons who want at attend the meeting, upon twenty-four
O
:..,-· ice the City. Contact:
l>i,,·
Gail A. Kundinger. City City Clerk
933 Terrace Street, Muskegon, Ml 49440
(231) 724-6705 or TDD (231) 724-6773
V
NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION TO ENSURE EQUAL
EMPLOYMENT OPPORTUNITY (Executive Order 11246)
1. The Bidder's attention is called to the "Equal Opportunity Clause" and the "Standard
Adopted Equal Employment Specifications" set forth in Part 3, Section II, of the these
Documents.
2. The goals and the timetables for minority and female participation, expressed in
percentage terms for the Contractor's aggregate workforce in each trade on all
construction work in the covered area, are as follows:
TRADE GOALS FOR PARTICIPATION IN EACH TRADE
MINORITY FEMALE
ALL 14% 6.9%
These goals are applicable to all the Contractor's construction work (whether or not
it is Federal or Federally-assisted) performed in the covered area. If the Contractor
performs construction work in a geographical area located outside of the covered
area, it shall apply the goals established for such geographical area where the work
is actually performed. With regard to this second area, the Contractor also is subject
to the goals for both its Federally involved and nonfederally involved construction.
The Contractor's compliance with the Executive Order and regulations in 41 CFR Part
60-4 shall be based on its implementation of the Equal Opportunity Clause, specific
affirmative action obligations required by the specifications set forth in 41 CFR 60-
4.3(a), and its efforts to meet the goals. The hours of minority and female
employment and training must be substantially uniform throughout the length of the
Contract, and in each trade, and the Contractor shall make a good faith effort to
employ minorities and women evenly on each of its projects. The transfer of minority
or female employees or trainees from contractor to contractor for from project to
project for the sole purpose of meeting the contractor's goals shall be a violation of
the Contract, the Executive Order, and the regulations in 41 CFR Part 60-4.
Compliance with the goals will be measured against the total work hours performed.
3. The Contractor shall provide written notification to the Director of the Office of
Federal Contract Compliance Programs within 10 working days of award of any
construction subcontract in excess of $10,000 at any tier for construction work under
the Contract resulting from this solicitation. The notification shall list the name,
address and telephone number of the subcontractor; employer identification number
of the subcontractor; estimated dollar amount of the subcontract; estimated starting
and completion dates of the subcontract; and the geographical area in which the
contract is to be performed.
4
· ~s Used in this Notice, and in the Contract resulting from this solicitation, the
covered area" is the City of Muskegon, County of Muskegon, State of Michigan.
vi
NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION
TO INSURE EQUAL EMPLOYMENT OPPORTUNITY AND
PROHIBITING DISCRIMINATION IN EMPLOYMENT
(Federal Executive Order 112461
Michigan: Elliot-Larson Civil Rights Act
The attention of bidders fa particularly called lo the requfrements for ensuring that employees and
applicants for employment are not discriminated against.
During the performance of this contract, the contractor agrees as foflows:
The contractor will not discriminate against any employee or applicant for employment
because of religion, race, color, national origin, age, sex, height, weight, familial status,
marital status, handicapped, or status as a Vietnam era veteran. The contractor will take
affirmative action to ensure that applicants are employed and that employees are treated
during employment, without regard to their religion, race, color, national origin, age, sax,
hsight, weight, familial status, marital status, handicapped condition or veteran
background. Such action shall include, but not be limited to, the following: employment,
upgrading, demotion, or transfer; recruitment or recruitment advertising, layoff or
tennlnatlon; rates of pay or other forms of compensation; selection for training, including
apprenticeship.
LOCAL EMPLOYMENT EFFORT
The City of Muskegon requires that the contractor must hire local trades and labor
employees from the City of Muskegon, County of Muskegon and/or this SMSA (Standard
Metropolitan Stallstlcal Area, for the duration of this project, Insofar as these are avallable
to perform the necessary work. Supervisory and/or technical staff officlals are exempt
from this requirement.
LABOR STANDARDS PROVISIONS
EMPLOYMENT AND PREVAILING WAGE AND SALARY REQUIREMENTS
\ .. • attention of bidders Is particularly ca fled to the requirements covered In these documents
,concemlng the payment of not less than the prevailing wage and salary rates specified, and In
',"81nl to conditions of employment with respect to certain categories and classlflcatlons of
lnlployees.
laborers and mechanics employed by this contract shall be paid unconditionally and not less
none, each week, and without subsequent deduction or rebate on any account (except euch
roll deductions as are permitted by the applicable regulations Issued by the City or
kegon).
55
Disadvantaged Contractor Affidavit
Please provide the name(s) of all Disadvantaged subcontractors from whom you solicited bids for this project
and additional information below.
Disadvantaged Contractor: Contact Person: Contact Method/Date: Decision (Yes or No):
1.- - - - - -- - -
2._ _ _ __ _ __ _
3.- - - - - -- - -
4.- - - -- ----
Of the Disadvantaged Contractors listed above, please indicate why they will not be used on this project.
Disadvantage Contractor: Decision/Reason:
1.- -- -- - - -
2.- - - -- - - -
Commission Meeting Date: August 12, 2003
Date: July 29, 2003
To: Honorable Mayor and City Commissio
From: Planning & Economic Development:
RE:
- ---
Request for final Planned Unit Development approval for a
40-unit senior housing development at McLaren St. and
Wesley Ave.
SUMMARY OF REQUEST:
Request for final approval for a 40-unit senior housing development at McLaren St. and
Wesley Ave. in the Jackson Hill neighborhood. The request is from the Sterling Group.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Staff recommends final PUD approval for the development and approval of the
associated plans provided that the conditions listed in the attached resolution are met.
COMMITTEE RECOMMENDATION:
The Planning Commission recommended final approval of the PUD and associated
plans, with the conditions listed on the attached resolution, at a special meeting held on
7/28. The vote was unanimous, with T. Johnson and T. Harryman absent.
7/29/2003
CITY OF MUSKEGON
RESOLUTION #2003-. 64 ( b)
RESOLUTION FOR FINAL PLANNED UNIT DEVELOPMENT APPROVAL FOR THE
PROPOSED DEVELOPMENT AT MCLAREN ST. AND WESLEY AVE.
WHEREAS, a petition for a planned unit development was received from the Sterling Group and,
WHEREAS, a planned unit development will allow a 40-unit senior residential development; and,
WHEREAS, proper notice was given by mail and publication and public hearings were held by
the City Planning Commission and by the City Commission to consider said petition, during
which all interested persons were given an opportunity to be heard in accordance with provisions
of the Zoning Ordinance and State Law; and
WHEREAS, the Planning Commission and staff have recommended approval of the final Planned
Unit Development and associated site and landscaping plans, with conditions as follows:
I. The development will remain a senior complex for ages 55 and older as long as the PUD is in
effect.
2. The proposed vacation ofa portion of McLaren St. and the proposed re-alignment of McLaren
St. and Sumner Ave. must be approved by the City Commission or this PUD approval will be
void.
3. Sign permits will be obtained for all proposed signage and signs will meet ordinance
requirements.
4. The construction plans for Sumner and McLaren must be submitted to and approved by the
Engineering Department and must contain local street dimensions such as width of street a
minimum of 27 feet back-to-back and right-of-way of no less than 50 feet, to be dedicated to
the City.
5. Fire hydrants shall comply with International Fire Code Appendix C.
6. The walking trail shown on the site plan will be paved with asphalt.
NOW, THEREFORE, BE IT RESOLVED that the recommendation by staff and the City
Planning Commission be accepted and the final planned unit development is hereby approved
with conditions.
Adopted this 12th day of August, 2003
Ayes: 7
Nays: o
Absent: O
CERTIFI CATE (Final PUD for McLaren St/Wesley Ave.)
The undersigned, being the duly qualified clerk of the City of Muskegon, Muskegon
County, Michigan, does hereby certify that the foregoing is a true and complete copy of a
resolution adopted by the City Commission of the City of Muskegon, at a regular meeting of the
City Commission on the 12th day of August, 2003, at which meeting a quorum was present and
remained throughout, and that the original of said ordinance is on file in the records of the City of
Muskegon. I further certify that the meeting was conducted and public notice was given pursuant
to and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as amended, and
that minutes were kept and will be or have been mad available as required ereby.
DATED: Au3 1.!J. 'fh. , 2003.
Gail A. Kundinger, MMC
Clerk, City of Muskegon
N
City of Muskegon
Planning Commission W~E
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CITY OF MUSKEGON
PLANNING COMMISSION
SPECIAL MEETING
MINUTES [EXCERPT]
July 28, 2003
P. Sartorius called the meeting to order at 4:06 p.m., and roll was taken.
MEMBERS PRESENT: J. Aslakson, B. Mazade, S. Warmington, P. Sartorius, B. Smith,
T. Michalski, L. Spataro
MEMBERS ABSENT: T. Johnson, excused; T. Harryman, excused.
STAFF PRESENT: D. Steenhagen, H. Griffith
OTHERS PRESENT: S. Czadzeck, Driesenga & Associates; K. Heckaman, Vice-
President of Sterling Group; J. Boss, Sterling Group; B. Holmes,
Jackson Hill Neighborhood Association; J. Schrier, City Attorney.
APPROVAL OF MINUTES
A motion to approve the minutes of the regular meeting of July 10, 2003 was made by L.
Spataro, supported by S. Warmington and nnanimously approved.
OLD BUSINESS
Case 2003-28: Request for final Planned Unit Development approval for a senior housing
development at McLaren St. and Wesley Ave., by The Sterling Group (tabled). D. Steenhagen
gave the staff report. The applicant has submitted a revised site plan for the proposed
development, as well as a building floorplan which is to scale. The site plan shows 16 duplex
buildings (32 units) and two 4-unit buildings (8 units) for a total of 40 units for the
development. There is also a proposed office and clubhouse building. The proposed buildings
are situated along the proposed re-aligned McLaren St., and Sumner Ave. and the existing
Wesley Ave. There are 14 two-bedroom units shown and 26 one-bedroom units. Each unit is
proposed to have a one-stall garage with an additional parking space in the driveway in front of
the garage. There are tlu·ee proposed spaces for the office and clubhouse. The zoning
ordinance requires 15% common, usable open space for a residential development. The newest
site plan does show 20% open space including a walking trail. Setbacks for the structures from
the streets are shown on the revised site plan. The structures appear to average about 11 feet
from the roads with the garages recessed further to allow room for one car to park in the
driveways in front of the garages. The site plan shows screening in all required areas and
indicates that the screening will meet ordinance requirements. Building dimensions are shown
on the revised site plan. An elevation of a proposed design has been provided. The revised site
plan states that "exteriors of buildings will have varying sidings, colors, and aesthetic
treatments".
Planning Commission Minutes - 7/28/03 1
A landscape plan has been submitted. The exact locations of existing trees are not shown, but
the developer has agreed to walk the site with staff and the landscape architect in order to
develop a comprehensive tree protection plan. This is indicated and agreed to on the landscape
plan. The plan also states that all effmts will be made to "replace vegetation in a manner that is
reasonable and effective". The landscape plan shows a variety of species of trees (canopy,
evergreen and flowering), shrubs and other landscaping materials, including street trees along
the proposed Sumner Ave. extension and the Wesley Ave. cul-de-sac, as well as landscaping
buffers along the adjoining residential prope1ties. Staff has spoken to the developer about
working together with the landscape architect on a tree protection plan and on a plan for tree
replacement (in addition to already proposed landscaping) for the site. This type of approach
has worked well with another recent development and staff feels comfortable that the developer
and landscape architect understand the City requirements for tree replacement. A performance
guarantee for landscaping should be required, to be put in place during the construction process
to ensure that all landscaping is in place before any Certificates of Occupancy are issued for the
development. The landscaping plan shows details of placement, size and species. A good mix
of landscaping materials is provided. Street trees are provided as well. Sidewalk is shown
along both sides of most of the proposed McLaren and Sumner Streets as well as the Wesley
Ave. cul-de-sac. A location for an identification sign is shown on the site plan. Any site
signage must meet ordinance requirements for size and placement and sign permits must be
obtained at the time that signs are placed on the property. The ordinance permits entranceway
monument signs for residential developments of up to 12 square feet. One sign for each major
public road frontage may be provided. Signs shall not exceed eight feet in height. Site signage
will be addressed when sign permits are applied for, as is common practice. Staff has received
a letter committing to fire suppression in all buildings. This meets the requirements of the Fire
Marshal. Other requirements of the Fire Marshal (regarding hydrants) and the City Engineer
can be addressed during the construction plan and building permit process.
A floorplan has been submitted which is to scale. Staff has calculated that the one-bedroom
units are proposed to have approximately 730 square feet while the two-bedroom units are
proposed to have approximately 900 square feet. The unit sizes are below the ordinance
requirements for one and two-family residential dwelling units (the ordinance requires 960 for a
one-bedroom and 1060 for a two-bedroom). The Zoning Ordinance is structured so that it has
one set of requirements for living space for one or two-family units and a separate set for
apmtments (defined as more than two units). It may not in some cases be appropriate to require
a duplex unit to have the smne living space as a single-family home as duplexes are generally
smaller sized in many cases. Requiring a duplex to meet the smne living space requirements as
single-family homes in essence, requires them to be the same size as two single-family homes
stuck together, which is not the case for many duplexes. In this case, two of the proposed
buildings are four-units, and therefore those buildings need to meet the requirements for
apartment living sizes anyway. For apmtment units, the ordinance requires 650 square feet for a
one-bedroom unit, and 875 square feet for a two-bedroom unit. The proposed units meet these
requirements. Treating this development as a series of apartment units seems reasonable to
staff. The zoning ordinance requires storage space of at least 15% of the interior living space of
each dwelling unit, exclusive of auto storage or attic storage, to be provided within the structure.
The proposed units do not meet this requirement. Both the one and two-bedroom units have
approximately 4% of storage space, comprised of storage closet areas. Staff has spoken with
Billie Joy Holmes, Vice-President of the Jackson Hill Neighborhood Association. The former
Planning Commission Minutes - 7/28/03
2
president of the association has resigned his position and Ms. Holmes is the current
spokesperson for the group. Staff made sure that Ms. Holmes understood the development
plans and invited her to come and look at the site plan if she so wished. Ms. Holmes stated that
she would bring the issue up at the next neighborhood board meeting and would either get back
to staff with the neighborhood's comments on the development or a representative would come
to the special meeting.
T. Michalski stated that the walkway is proposed to be gravel according to the site plan. He
asked if this was acceptable according to zoning ordinance requirements. D. Steenhagen stated
that staff would propose that it be a paved surface. K. Heckaman stated that they would be
using normal black asphalt for the walkway. S. Czadzeck described the process for the
walkway. J. Aslakson asked if the applicant was aware of the proposed conditions for approval.
J. Boss stated that they were. T. Michalski asked if there was any way to insure that this would
remain a senior complex. B. Mazade stated that it would be done through the PUD process and
enforced. D. Steenhagen added that it was also required in order for the applicant to get the tax
credits. J. Schrier stated that the court doesn't like deed covenants. It is also hard to say what
the appropriate zoning would be 30 years from now. K. Heckaman asked once the PUD is
recorded, wouldn't it stay with the property. J. Schrier stated that it is always subject to change.
P. Sartorius stated that as long as the PUD is in place, it would be. J. Aslakson would like to
see the first condition changed to "The development will remain a senior complex as long as the
PUD is in effect". K. Heckaman asked if "55 and older" could be added in order to define
"senior". L. Spataro asked why there wasn't any sidewalk between building H & G. S.
Czadzeck stated that the curb is right up to the property line at that point, leaving no room for
sidewalk there. B. Holmes asked questions in regards to the proposal for the street placement.
D. Steenhagen explained the way the street connections would be.
A motion that the final PUD and associated site plan for a senior residential development at
McLaren St., Sumner Ave. and Wesley Ave. be approved pursuant to the determination of
compliance with the intent of the City Zoning Ordinance and City Master Land Use Plan based
on the following conditions: 1) The development will remain a senior complex for 55 and older
as long as the PUD is in effect. 2) The proposed vacation of a portion of McLaren St. and the
proposed re-alignment of McLaren St. and Sumner Ave. must be approved by the City
Commission or this PUD approval will be void. 3) Sign permits will be obtained for all
proposed signage and signs will meet ordinance requirements. 4) The construction plans for
Sumner and McLaren must be submitted to and approved by the Engineering Department and
must contain local street dimensions such as width of street a minimum of 27 feet back-to-back
and right-of-way of no less than 50 feet, to be dedicated to the City. 5) Fire hydrants shall
comply with International Fire Code Appendix C. 6) The walking trail shown on the site plan
will be paved, was made by J. Aslakson, suppmied by T. Michalski and unanimously approved.
Planning Commission Minutes-7/28/03
3
Date: August 12, 2003
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Proposed Water Rate Increase
SUMMARY OF REQUEST: The City's water rates were last adjusted in April 1999. Last
year, the City retained the consulting engineering firm Tetra-Tech to study the City's water rate
structure in light of 1) costly improvements to the filtration plant being mandated by the state and, 2)
significant new legal developments impacting the structure of municipal user fees. The Tetra-Tech
'Water Cost of Service Study" has previously been distributed to City Commissioners. The attached
resolution implements the 2003 and 2004 rate recommendations contained in the study.
FINANCIAL IMPACT: The proposed rate increase will generate an estimated $975,000 per
year of additional revenue for the water system in 2004. The following table shows how the rate
increase will impact typical residential households:
Sample Users Quarterly Water Quarterly Water Bill Quarterly Water Bill
Bill Before After 10/01/03 After 01/01/04
Increase Increase Increase
Using 7,500 gallons
per 111011th
$9.20 $8.80 $10.90
Using 15,000
gallons per month $15.90 $17.60 $21.80
BUDGET ACTION REQUIRED: None at this time. The 2004 water fund budget will
incorporate the projected revenues from the rate increase
STAFF RECOMMENDATION: Approval of the attached resolution implementing the
proposed water rate increase.
COMMITTEE RECOMMENDATION: The Committee of the Whole will meet on
th
Monday, August 11 to further discuss this item.
9/18/97 1
PARMENTER o-TOOLE
Altomeys at Law
175 West Apple Avenue • P.O. Box 786 • Muskegon, Michigan 49443-0786
Phone 231.722.1621 • Fax 231.722.7866 or 231 .728.2206
www.Parmenterlaw.com
July 23, 2003
Timothy J. Paul
Director of Finance
City of Muskegon
933 Te1rnce Street
P.O. Box 536
Muskegon,MI49443-0536
Re: Water Rates
Dear Mr. Paul:
Enclosed is a revised water resolution.
Very truly yours,
9s:he_!:)ter Hills 10.10 12
Port Hur_Q_n 10.63 13
South~ 1o.5414·~
Allen Park 10.78 15
Southfield 10.86 16
Kentwood 10.92 17
Warren 11.03 ·-18"
TrO 11.06 19
Portage
Hp_l_l_;;lfl9_
11.u~ 20
,, ...,..,
•• "" -,,
Inkster 11.85 22
Gi-aricfHaven 11.93 23
_l,i.D_c;oln P~rk 12.43 24
.,, --.o
Battle Creek
Livonia
,..:..,c
....
1.<.aufi~ --,,
25
_lij_;;it~rford 12.82 27
Kalamazoo 13.04 28
~ Heights 13.12 29
Royal Oak 13.15 30
Farmington Hills 13.3231
Muskegon'rownshi 13.60 32
Westland
c;;n1on·
1~.ou
,_,_.,_,
1<1 a.c:: -,.
33
Gard"en Ci 14.07 35
yvyomin, 14.17 36
Whitehall 14.18 37
OakPark 14.34 38
RedfordTownshi1 14.40 39
Bloomfiaj_d_"townshi1 14.93 40
.B_qp~velt Park 15.18 41
West ~]flomfield Town~i 16.00 42
Midland 16.50 43
East Lansin 16.57 44
Novi 16.69 45
St Clair Shores 16.82--~
Shelby 19Wrl$hi 17.02 47
Ann Arbo1_ 17.50 48
Lansing •, ..,, .oo
<><>
49
fily_Q_tv 1R Rn ~
Montague 18.89 51
Norton Shores 19.47 52
Pontiac -- 21.30 53
G_r_a_ric:IRapid.!_ 22.42 54
-
Jackson 22.52 55
Flint-- -
23.29 56
£!}1.[!!;!ort Towns hi[ 23.72 57
Burton 24.50 58
North Muskegon 32.00 59
Average m:Ta
Mediafl !13.15
Note: Assumes 7,500 gallons (or 1,000 cubic feet) monthly usage and a 5/8" (or nearest equivalent) meter size.
Source: April 2000 Michigan Water/Wastewater Rate Survey conducted by
Black & Veatch Corporation, Management Consulting Division and
supplemented by local area survey as of June 2003.
Typical Monthly Water Bill
Ranked from Lowest (1) to Highest {59}
Residential Customers -15,000 Gallons Usage
(Bold Type Indicates Local Area Communities)
PROJECTED FOR MUSKEGON BY YEAR
Commun!!l Water
Sagins!_w S12.95
"'"'
1
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank
Waterford Townshi! 13.33 2
Wyandotte 14.35 3
SteriingHeights 14.91 1.8% 23.9% 16.5% 0.8% 0.8%
Muskegon 1~.~u
~~ -~ s
4
17.60 6 21.80 22 25.40 32 25.60 32 25.80 33
Ferndale ....
•,,.,. ""
,., --6
Dearborn 17.96 7
Taylor 18.26 8
Muskegon Heights ,u .....
~0 AA
Eastpointe 1R ,i:fi
•¥«¥ -c;o'
Clinton Towns~iJ 18.53 11
Detr~--
18.62 12
Holland 18.95 13
P_qrt__t,uron 19.10 14
KalamE~OO 19.98 15
Rochester Hil~ 20.20 16
Kentwood 20.42 17
Po~~ 20.95 18
Allen Park 21.06 19
Southgate 21.28 20
Southfield 21.44 21
Warren 21.64 22
~~le Creek 21.88 23
l,.ipcqln Park 22.01 24
Tro' 22.12 25
Grand Haven 22.35 26
Wyomin 22.67 27
Inkster 23.35 28
~ 24.00 29
Livonia 24.10 30
Muskegon Township 24.70 31
Roosevelt Park 25.15 32
w_~~!:!®ri:! 25.64 33
Royal Oak 25.86 34
Fannington Hills 26.29 35
Garden Ci 27,05 36
OakPark 27.42 37
W§.!@.QQ 27.60 36
Canton 27.90 39
Redf.Qr_(I Townshi 28.12 40
Whitehall 28.35 41
~ Townshi 29.85 42
Montague 30.14 43
Novi 30.64 44
Noriori'siiores 30.72 45
West BLqqmfield Townshi 32.00 46
East Lan_§in 33,15 47
ShelbyTOWlJ~!li 33.21 48
St Clair Shores 33.64 49
Lansin 34.01 so
Ann-Arbor 35.00 51
Pontiac 35.10 52
BayO 35.20 53
Gram;! Rapids 35.32 54
Jacks.2_n 37.94 55
Burton 41.00 56
Fruitport Township 41.59 57
North M_u_skegon 44.00 58
Flint 45.17 59
Average $25.73 ...
Mediari _!24.10
Note: Assumes 15,000 gallons {or 1,000 cublcfeet) monthly usage and a 518" {or nearest equivalent) meter size.
Source: April 2000 Michigan Water/Wastewater Rate Survey conducted by
Black & Veatch Corporation, Management Consulting Division and
CITY OF MUSKEGON
Resolution No. 2003-264 ( 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 determined that an increase in the
rates for water service and elimination of the ready-to-serve (RTS) charge is
justified in the opinion of the City Commission.
THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION:
1. For service provided after October 1, 2003, the water ready-to-serve (RTS)
charge, except for fire lines, shall be eliminated.
2. The ready to serve charge for fire lines shall be:
Description Monthly Amount Billed
FIRELINE READY TO SERVE 2 INCH $6.50
FIRELINE READY TO SERVE 3 INCH $13.25
FIRELINE READY TO SERVE 4 INCH $21.00
FIRELINE READY TO SERVE 6 INCH $39.00
FIRELINE READY TO SERVE 8 INCH $66.60
FIRELINE READY TO SERVE 10 INCH $103.00
FIRELINE READY TO SERVE 12 INCH $132.00
FIRELINE READY TO SERVE 16 INCH $210.00
Description Quarterly Amount Billed
FIRELINE READY TO SERVE 2 INCH $19.50
FIRELINE READY TO SERVE 3 INCH $39.75
FIRELINE READY TO SERVE 4 INCH $63,00
FIRELINE READY TO SERVE 6 INCH $117.00
FIRELINE READY TO SERVE 8 INCH $198.00
FIRELINE READY TO SERVE 10 INCH $309.00
FIRELINE READY TO SERVE 12 INCH $396.00
FIRELINE READY TO SERVE 16 INCH $630.00
G:\EDSIIFILES\00100\0966\RESOLUT\805282.DOC
3. For service provided after October 1, 2003 the rate for water shall be changed
from $0.67 per hundred cubic feet to $0.88 per hundred cubic feet.
4. For service provided after January 1, 2004, the rate for water shall be changed
from $0.88 per hundred cubic feet to $1.09 per hundred cubic feet.
This resolution passed.
Ayes___7_ _ _ _ _ __
Nays_ _ _o_ _ _____
::TY~a.7SQ,-G1_O__::_:__=-=---,F--
Gail A Kundinger, Clerk
CERTIFICATE
This resolution was adopted at a meeting of the City Commission, held on _ _ __ _
2003. 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.
B Y--1.:::::3~~ 6..._~~~~f/Zt',.._,
Gail A. Kundinger, Clerk
G:\EDSIIFILES\00100\0966\RESOLUnB05282.DOC
CITY OF MUSKEGON, MICHIGAN
Water Cost of Service Study
I
Prepared by
Tetra Tech MPS
May 2003
ACKNOWLEDGEMENT
We would like to acknowledge the efficient assistance and useful data provided to our
representatives throughout the course of this project. We would like to recognize the following City
of Muskegon personnel:
Mr. Timothy Paul, Finance Director
Mr. Derrick Smith, City Treasurer
!
Muskegon Water Cost of Service Study Page iii
CONTENTS
Page
I
ACKNOWLEDGEMENT
LIST OF TABLES
iii
V
I
EXECUTIVE SUMMARY vi
INTRODUCTION 1
WATER RATE STRUCTURE DEVELOPMENT 1
ANNUAL REVENUE REQUIRED 1
RATE DESIGN 2
IMPACT OF THE BOLT OPINION ON THE CITY'S WATER RATE STRUCTURE 3
WATER RATE CALCAULTIONS 6
IMPACT OF PROJECTED WATER RATES 8
APPENDICES
A Tables
B Glossary of Terms
Muskegon Water Cost of Service Study Page iv
LIST OF TABLES
1· Water Rate History
2 Projected Water Rates
3 Historical Billable Flows
4 Projected Billable Flows
5 Projected Equivalent Billable Flows
6 Water Revenue History
7 Water System Budgeted Capital Improvements 2003 Through 2007
8 Water System Schedule of Indebtedness 2003 Through 2007
9 Water System Expenses
10 Water System Expense Allocations
11 Projected Water Rate Calculations
12 Water System Revenues
13 Water Cost Comparison
14 Revenue Percent-to-Billable Flow Percent by User Class
Muskegon Water Cost of Service Study Pagev
EXECUTIVE SUMMARY
This Water Cost of Service Study presents recommendations for revisions to the City of Muskegon's
water rate structure.
I
A water cost of service study follows this three-step process:
1. Determine how much money the City needs to fund its water operating and capital programs.
These are the City's water revenue requirements.
2. Detennine what it costs the City to provide water, wastewater and various related services.
i
This is called cost allocation. I
3. Develop a water rate structure to recover the cost of service from each customer or class of
customers who cause the costs to be incurred. New rates must comply with existing
intermunicipal service contract provisions. This is the rate design.
There are three reasons for reviewing the City's current water utility service rate structure:
1. Ensure the financial stability of the City's water utility m light of significant capital
I
I
improvements being planned.
2. The current water rate structure has been m use for many years and the December 1998
Michigan Supreme Court ruling of Bolt v. the City of Lansing may affect the City's water rate
structure because the ruling established a criteria that municipal user fees should be based on
the cost of providing the service to its customers.
3. The City may apply for State Revolving Fund low interest loan funding for the upcoming
capital improvements. One State requirement for obtaining this low interest loan is that the
City prepare a Water User Charge System. This report will develop a water rate structure that
could serve as the basis for the required Water User Charge System.
This cost of service study utilizes the Tetra Tech MPS SmartRate financial model to calculate water
revenue requirements and to allocate these to water customers. The SmaitRate financial model
Muskegon Water Cost of Service Study Page vi
j
consists of linked Excel software program spreadsheets, which can be used by the City to set future
water rates by entering new budget and customer usage data. It is recommended that the City conduct
such reviews annually and, if necessary, adjust the rates. This will help prevent the "rate shock" that
occurs when rates are not adjusted for many years. Financial and customer usage data used in the
SmartRate financial model were provided by the City and were adjusted based on several review
discussions with City staff.
Muskegon Water Cost of Service Sh1dy Page vii
INTRODUCTION
WATER RA TE STRUCTURE DEVELOPMENT
The proposed water rate structure developed in this repo11 are based on the following cost of service
procedures:
1. Determination of the total annual revenue required for the year the rates are to be effective.
2. Distribution of the costs to user classes in accordance with their requirements for service.
3. Design of water rates that will recover from each class, within practical limits, the costs allocated
to each user class based on the cost to serve these user classes.
Rates must also comply with existing intermunicipal water service contracts.
ANNUAL REVENUE REQUIRED
The annual revenue required was determined using the cash basis of revenue determination and was
based on the City's fiscal year 2003 budget escalated to fiscal year 2007. Rates projected beyond
fiscal year 2003 are presented for information purposes only, using estimates of future expenses and
usage.
)
r
f
I
Muskegon Water Cost of Service Study Page 1
RATE DESIGN
The City of Muskegon's water rate structure consists of a Ready-to-Serve charge and a Commodity
charge. Appendix A, Table 1, "Water Rate History" shows the water rate structure from 1998 to 2002.
The December 1998 Michigan Supreme Court ruling of Bolt v. the City of Lansing may affect the
City's water rate structure because this ruling established a criteria that municipal user fees should be
proportional to the cost of providing the service to its customers. NOTE: All references to the Bolt
Opinion by Tetra Tech MPS should receive a legal review by the City Attorney and/or his/her
designee. Tetra Tech MPS's opinions regarding the Bolt Opinion are strictly limited to our previous
rate study work done in support of legal representation. In addition, the City is pursuing a Michigan
Drinking Water Revolving Fund (DWRF) low interest loan to lower the City's cost to construct
necessary improvements to its water system. The City's water rate structure must be designed so as to
meet both the Bolt and the DWRF requirements.
Muskegon Water Cost of Service Study Page2
IMPACT OF THE BOLT OPINION ON THE CITY'S WATER RA TE STRUCTURE
The December 1998 Michigan Supreme Court decision Bolt v. City of Lansing asserted that three primary
~riteria are to be considered when distinguishing between a fee and a tax:
1. A user fee must serve a regulatory purpose rather than a revenue-raising purpose;
2. User fees must be proportional to the necessary costs of the service;
3. A user fee must be voluntary in that the customer must be able to refuse or limit his/her use of ,\
I
the service.
'I
The City's Ready-to-Serve charge is a fixed charge that increases based on the customer's meter size.
It is charged to any City customer who is connected to the City's water service regardless of their
volume of use. This is commonly known as a "minimum charge" or a "base customer charge". This
type of charge could be subject to a Bolt court challenge if the City cannot document that the costs
recovered by the Ready-to-Serve charge are proportional to the service as given in point two, above.
The reason is that a customer using no City metered water during a billing period could argue that his
water bill should be zero. Such a customer could also argue that the Ready-to-Serve charge violates
point three, above, because such a fee prevents the customer from limiting the use of the service.
The Commodity charge is charge that is based on the volume of metered water used by the customer. \
There are three common types of Commodity charges:
1. Inclining Block: This is a pricing process where the price per unit of water increases with
increased volume of usage.
2. Declining Block: This is a pricing process where the price per unit of water decreases with
increased volume of usage.
3. Level Rate: This is a pricing process where the price per unit remains the same regardless of the
volume of usage.
I
Muskegon Water Cost of Service Srudy Page3
The following table summarizes the advantages and disadvantages of each of these rate structures.
Muskegon uses a level block type of Commodity charge. It is recommended that the City retain the use
of this type of a level block Commodity charge in light of the City's desire to pursue a DWRF low
interest loan and to help protect itself from a Bolt court challenge.
Muskegon Water Cost of Service Study Page4
Advantages and Disadvantages of the Three Common Types of Commodity Charge Rate Structures
Rate Strun1.1re Advantages Disadvantages
Inclining Block • Best match of price to cost of service • Adds instability to revenue
• Considers both volume and rate of use stream
• Can apply seasonally or continually • Can be difficult to apply
• May not meet MDEQ SRF Ii '
low interest loan
requirements ,I
• Difficult to defend against
a Bolt challenge
Declining Block • Historically standard practice • Does not encourage
!
conservation I,
• Does not consider
I
customer's rate of use L
• Can be difficult to apply
• May not meet MDEQ SRF
low interest loan
requirements
• Difficult to defend against
a Bolt court challenge
Level Block • Has a conservation element • Assumes all customers )'
'
• Recognizes some rate of use factor have the same rate of use
!
• Easy to understand patterns
I
• Stable revenue stream
• Meets MDEQ SRF low interest loan
requirements
• Easiest to defend against a Bolt court
challenge
Muskegon Water Cost of Service Study Pages
WATER RATE CALCULATIONS
The City's water system expenses, using current budgets coupled with projections to the year 2007, are
given in Appendix A, Tables 7, 8, 9 and 10.
In Appendix A, Table 4 projects metered water billable flows for City and Outside City based on
percentage usage increases provided by the City. In order to calculate the Commodity charge, the total
billable flows must be converted to "equivalent" billable flows. This is because Outside City
customers are billed, by contract, Commodity charges based on multipliers applied to their billable
flows. These multipliers are shown in the first column of Table 11, "Projected Water Rate
Calculations" and are as follows:
Outside City Customer Multipliers
Contract Customer Multiplier
Muskegon County Northside 1.25
Roosevelt Park 1.35
N01th Muskegon 1.35
Muskegon Township 1.35
Norton Shores (Miscellaneous Services) 2.00
Miscellaneous Outside 1.50
The City's water system expenses were reviewed and then allocated to the Commodity charge. Outside
City customers Commodity charges were then calculated in Table 11. The results are given in the
following table.
Muskegon Water Cost of Service Study Page 6
Commodity Charges, Proposed Through 2007, $ per 100 Cubic Feet
Customer Proposed 2004 2005 2006 2007
City 0.88 1.09 1.27 1.28 1.29
Muskegon 1.10 1.36 1.58 1.60 1.61
County
Northside
Roosevelt 1.18 1.47 1.71 1.72 1.74
Park
North 1.18 1.47 1.71 1.72 1.74
Muskegon
Muskegon 1.18 1.47 1.71 1.72 1.74
Township
Norton Shores 1.75 2.18 2.53 2.55 2.57
(Miscellaneous
Services)
Miscellaneous 1.32 1.63 1.90 1.92 1.93
Outside
l
I
\
Muskegon Water Cost of Service Study Page 7
IMPACT OF PROJECTED WATER RA TES
As shown in Appendix A, Table 14, "Revenue Percent-to-Billable Flow Percent by User Class", in
1998 the City used 77.37% of the total system metered flow and contributed 70.17% of the total system
revenue, a difference of 7 .20%. However, by 2002, these percentages were 72.49% and 68.87%,
respectively, for a difference of 3.62%. By eliminating the City's Ready-to-Serve charge, this trend
will be reversed. Under the proposed water rate structure, it is projected that, by 2007, these
percentages could be 69.94% and 61.45%, respectively, for a difference of 8.49%.
As shown in Table 6, "Water Rate History", the revenue generated by the City's Ready-to-Serve
charges has been just under 20% of total revenue from 1998 through 2002. By eliminating its Ready-
to-Serve charges, the City will face a greater risk to it's revenue stability because all revenue will be
charged on the basis of amount of metered flow. The major water users (inside and outside the City)
use approximately 33% of the total water produced. For example, according to Table 6, in 2002
revenue from Ready-to-Serve charges was $685,303 and revenue from Commodity charges was
$2,838,874 for a total of $3,524,177. If billable flow had dropped by 25% in all service areas, Ready-
to-Serve charge revenue would have still been $685,303 and Commodity charge revenue would have
been 75% of $2,838,874, or $2,129,155. Total revenue would be $685,303 plus $2,129,155 =
$2,814,458. This would equate to a total net revenue reduction of approximately 20%. However, if all
the $3,524,177 revenue was Commodity charge based, the total net revenue reduction would also be
25%. If billable flow was reduced by 50%, total revenue would be equal to $685,303 + (0.50 x
$2,838,874) = $2,104,740 for a total net revenue reduction of approximately 40%. Under a
Commodity charge rate structure, the total net revenue reduction would be 50%. This is summarized
in the following table:
Muskegon Water Cost of Service Study Page 8
2002 Revenues Under Current and Proposed Water Rate Structures and 25% and ·:v;.;, Reductions in
Billable Flow
Rate Structure Ready-to-Serve Commodity Total Revenue
Current $685,303 $2,838,874 $3,524,177
Current, with 25 drop $685,303 $2,129,155 $2,814,458
in Billable Flow
Proposed, with 25% $0 $2,643,132 $2,643,132
drop in Billable Flow
Current, with 50 drop $685,303 $1,419,437 $2,104,740
in Billable Flow
Proposed, with 50% $0 $1,762,088 $1,762,088
drop in Billable Flow
I
l
Muskegon Water Cost of Service Study Page 9
The effect on water costs for various customers using the proposed rate structure is shown in Table 13,
"Water Cost Comparison" as summarized in the following table:
Cost Comparisons and Annual Percentage Cost Increases
User Current Cost 2007 Cost Average
Annual
Increase
Average Residential - City: $24.92 per Quarter $33.43 per Quarter 7%
5/8" Meter & 26 CF per Quarter
High Residential - City: $85.75 per Quarter $128.59 per Quarter 10%
l" Meter & I 00 CF per Quarter
Low Commercial - City: $395.00 per Quarter $642.93 per Quarter 13%
2" Meter & 500 CF per Quarter
High Commercial - City: $1,452.50 per Quarter $2,571.74 per Quarter 15%
3" Meter & 2,000 CF/Quarter
) Largest Six Customers - City ) 18%
Muskegon County Northside $146,889 per Year $281,911 per Year 18%
Roosevelt Park $197,776 per Year $409,938 per Year 21%
North Muskegon $262,666 per Year $544,439 per Year 21%
Muskegon Township $433,483 per Year $746,708 per Year 14%
Muskegon Water Cost of Service Study Page 10
APPENDIX A
Tables
I
Muskegon Water cost of Service Study
Table 1
Water Rate History
CITY
Quarterly Ready-to-Serve
Charges:
Meter Size: 1998 1999 2000 2001 2002
5/8" 7.50 7.50 7.50 7.50 7.50
3/4" 10.25 10.25 10.25 10.25 11.25
1" 15.75 15.75 15.75 15.75 18.75
1 1/4" 22.63 22.63 22.63 22.63 28.25
1 1/2" 29.50 29.50 29.50 29.50 37.50
2" 46.00 46.00 46.00 46.00 60.00
3" 84.50 84.50 84.50 84.50 112.50
4" 139.50 139.50 139.50 139.50 187.50
6" 277.00 277.00 277.00 277.00 377.00
8" 497.00 497.00 497.00 497.00 600.00
10 11 799.50 799.50 799.50 799.50 862.50
12 11 1,184.50 1,184.50 1,184.50 1,184.50 1,612.50
Commodiry Charge:
Per 100 Cubic Feet: 0.60 0.67 0.67 0.67 0.67
MUSKEGON COUNTY
NORTHS IDE
Quarterly Ready-to-Serve
Charaes:
Meter Size: 1998 1999 2000 2001 2002
5/8" 7.50 7.50 7.50 7.50 7.50
3/4" 10.25 10.25 10.25 10.25 11.25
1" 15.75 15.75 15.75 15.75 18.75
1 1/4" 22.63 22.63 22.63 22.63 28.25
1 1/2" 29.50 29.50 29.50 29.50 37.50
211 ' 46.00 46.00 46.00 46.00 60.00
3" 84.50 84.50 84.50 84.50 112.50
4" 139.50 139.50 139.50 139.50 187.50
6" 277.00 277.00 277.00 277.00 377.00
8" 497.00 497.00 497.00 497.00 600.00
10 11 799.50 799.50 799.50 799.50 862.50
12 11 1,184.50 1,184.50 1,184.50 1,184.50 1,612.50
Commodiry Charge:
Per 100 Cubic Feet: 0.75 0.84 0.84 0.84 0.84
ROOSEVELT PARK
Quarterly Ready-to-Serve
Charges:
Meter Size: 1998 1999 2000 2001 2002
5/8" 7.50 7.50 7.50 7.50 7.50
3/4" 10.25 10.25 10.25 10.25 11.25
1" 15.75 15.75 15.75 15.75 18.75
1 1/4" 22.63 22.63 22.63 22.63 28.25
1 1/2" 29.50 29.50 29.50 29.50 37.50
2" 46.00 46.00 46.00 46.00 60.00
Tetra Tech
SmartRate
0482.034 Muskegon Water Rate Study 6/11/2003 9:47 AM
Table 1
Water Rate History
Meter Size: 1998 1999 2000 2001 2002
3" 84.50 84.50 84.50 84.50 112.50
4" 139.50 139.50 139.50 139.50 187.50
6" 277.00 277.00 277.00 277.00 377.00
8" 497.00 497.00 497.00 497.00 600.00
10 11 799.50 799.50 799.50 799.50 862.50
12 11 1,184.50 1,184.50 1,184.50 1,184.50 1,612.50
Commoditv Charge:
Per 100 Cubic Feet: 0.81 0.90 0.90 0.90 0.90
NORTH MUSKEGON
Quarterly Ready-to-Serve
Charges:
Meter Size: 1998 1999 2000 2001 2002
5/8" 7.50 7.50 7.50 7.50 7.50
3/4" 10.25 10.25 10.25 10.25 11.25
1" 15.75 15.75 15.75 15.75 18.75
11/4" 22.63 22.63 22.63 22.63 28.25
1 1/2" 29.50 29.50 29.50 29.50 37.50
2" 46.00 46.00 46.00 46.00 60.00
3" 84.50 84.50. 84.50 84.50 112.50
4" 139.50 139.50 139.50 139.50 187.50
6" 277.00 277.00 277.00 277.00 377.00
8" 497.00 497.00 497.00 497.00 600.00
10 11 799.50 799.50 799.50 799.50 862.50
Commodttv Charge:
12 11 1,184.50 1,184.50 1,184.50 1,184.50 1,612.50 1
Per 100 Cubic Feet: 0.81 0.90 0.90 0.90 0.90
MUSKEGON TOWNSHIP
Quarterly Ready-to-Serve
Charges:
Meter Size: 1998 1999 2000 2001 2002
5/8" 7.50 7.50 7.50 7.50 7.50
3/4" 10.25 10.25 10.25 10.25 11.25
1" 15.75 15.75 15.75 15.75 18.75
1 1/4" 22.63 22.63 22.63 22.63 28.25
11/2" 29.50 29.50 29.50 29.50 37.50
2" 46.00 46.00 46.00 46.00 60.00
3" 84.50 84.50 84.50 84.50 112.50
4" 139.50 139.50 139.50 139.50 187.50
6" 277.00 277.00 277.00 277.00 377.00
8" 497.00 497.00 497.00 497.00 600.00
11
10 799.50 799.50 799.50 799.50 862.50
12 11 1184.50 1184.50 1184.50 1184.50 1612.50
Commodity Charge:
Per 100 Cubic Feet: 1.50 1.50 1.50 1.11 1 .11
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0482.034 Muskegon Water Rate Study 6/11/2003 9:47 AM
Table 1
Water Rate History
Meter Size: 1998 1999 2000 2001 2002
NORTON SHORES
Miscellaneous Services)
Commodity Charge: 1998 1999 2000 2001 2002
Per 100 Cubic Feet: 1.20 1.34 1.34 1.34 1.34
MISC. OUTSIDE
Commoditv Charae: 1998 1999 2000 2001 2002
Per 100 Cubic Feet: 0.90 1.01 1.01 1.01 1.01
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0482.034 Muskegon Water Rate Study 6/11/2003 9:47 AM
Table 2
Projected Water Rates
CITY
Quarterly Ready-to-Serve
Charges:
Meter Size : Proposed 2004 2005 2006 2007
5/8" 0.00 0.00 0.00 0.00 0.00
3/4" 0.00 0.00 0.00 0.00 0.00
1" 0.00 0.00 0.00 0.00 0.00
1 1/4" 0.00 0.00 0.00 0.00 0.00
11/2" 0.00 0.00 0.00 0.00 0.00
2" 0.00 0.00 0.00 0.00 0.00
3" 0.00 0.00 0.00 0.00 0.00
4" 0.00 0.00 0.00 0.00 0.00
6" 0.00 0.00 0.00 0.00 0.00
8" 0.00 0.00 0.00 0.00 0.00
10 11 0.00 0.00 0.00 0.00 0.00
12 11 0.00 0.00 0.00 0.00 0.00
Commoditv Charge:
Per 100 Cubic Feet: 0.88 1.09 1.27 1.28 1.29
MUSKEGON COUNTY
NORTHS IDE
Quarterly Ready-to-Serve
Charges:
Meter Size: Proposed 2004 2005 2006 2007
5/8" 0.00 0.00 0.00 0.00 0.00
3/4" 0.00 0.00 0.00 0.00 0.00
1" 0.00 0.00 0.00 0.00 0.00
1 1/4" 0.00 0.00 0.00 0.00 0.00
1 1/2" 0.00 0.00 0.00 0.00 0.00
2" 0.00 0.00 0.00 0.00 0.00
3" 0.00 0.00 0.00 0.00 0.00
4" 0.00 0.00 0.00 0.00 0.00
6" 0.00 0.00 0.00 0.00 0.00
8" 0.00 0.00 0.00 0.00 0.00
10 11 0.00 0.00 0.00 0.00 0.00
12 11 0.00 0.00 0.00 0.00 0.00
Commodity Charge:
Per 100 Cubic Feet: 1.10 1.36 1.58 1.60 1.61
ROOSEVELT PARK
Quarterly Ready-to-Serve
Charges:
Meter Size: Proposed 2004 2005 2006 2007
5/8" 0.00 0.00 0.00 0.00 0.00
3/4" 0.00 0.00 0.00 0.00 0.00
1" 0.00 0.00 0.00 0.00 0.00
1 1/4" 0.00 0.00 0.00 0.00 0.00
1 1/2" 0.00 0.00 0.00 0.00 0.00
2" 0.00 0.00 0.00 0.00 0.00
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0482.034 Muskegon Water Rate Study 6/11/2003 9:47 AM
Table 2
Projected Waler Rates
Meter Size: Proposed 2004 2005 2006 2007
3" 0.00 0.00 0.00 0.00 0.00
4" 0.00 0.00 0.00 0.00 0.00
6" 0.00 0.00 0.00 0.00 0.00
8" 0.00 0.00 0.00 0.00 0.00
10 11 0.00 0.00 0.00 0.00 0.00
12" 0.00 0.00 0.00 0.00 0.00
CommoditY Charge:
Per 100 Cubic Feet: 1.18 1.47 1.71 1.72 1.74
NORTH MUSKEGON
Quarterly Ready-to-Serve
Chari:ies:
Meter Size: Proposed 2004 2005 2006 2007
5/8" 0.00 0.00 0.00 0.00 0.00
3/4" 0.00 0.00 0.00 0.00 0.00
1" 0.00 0.00 0.00 0.00 0.00
1 1/4" 0.00 0.00 0.00 0.00 0.00
1 1/2" 0.00 0.00 0.00 0.00 0.00
2" 0.00 0.00 0.00 0.00 0.00
3" 0.00 0.00 0.00 0.00 0.00
4" 0.00 0.00 0.00 0.00 0.00
6" 0.00 0.00 0.00 0.00 0.00
8" 0.00 0.00 0.00 0.00 0.00
10 11 0.00 0.00 0.00 0.00 0.00
12 11 0.00 0.00 0.00 0.00 0.00
Commoditv Charge:
Per 100 Cubic Feet: 1.18 1.47 1.71 1.72 1.74
MUSKEGON TOWNSHIP
Quarterly Ready-to-Serve
Charaes:
Meter Size: Proposed 2004 2005 2006 2007
5/8" 0.00 0.00 0.00 0.00 0.00
3/4" 0.00 0.00 0.00 0.00 0.00
1" 0.00 0.00 0.00 0.00 0.00
1 1/4" 0.00 0.00 0.00 0.00 0.00
11/2" 0.00 0.00 0.00 0.00 0.00
2" 0.00 0.00 0.00 0.00 0.00
3" 0.00 0.00 0.00 0.00 0.00
4" 0.00 0.00 0.00 0.00 0.00
6" 0.00 0.00 0.00 0.00 0.00
8" 0.00 0.00 0.00 0.00 0.00
11
10 0.00 0.00 0.00 0.00 0.00
12 11 0.00 0.00 0.00 0.00 0.00
Commodity Charge:
Per 100 Cubic Feet: 1.18 1.47 1.71 1.72 1.74
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0482.034 Muskegon Water Rate Study 6/11/2003 9:47 AM
Table 2
Projected Water Rates
Meter Size: Proposed 2004 2005 2006 2007
NORTON SHORES
'Miscellaneous Services)
Commoditv Charge: Proposed 2004 2005 2006 2007
Per 100 Cubic hiat: 1.75 2.18 2.53 2.55 2.57
MISC. OUTSIDE
Commoditv Charge: Proposed 2004 2005 2006 2007
Per 100 Cubic Feet: 1.32 1.63 1.90 1.92 1.93
1
I
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0482.034 Muskegon Water Rate Study 6/11/2003 9:47 AM
Table 3
Historical Billable Flows
Annual Billable Flows, 100 Cubic Foot Units
1998 1999 2000 2001 2002 *
Cil'J 3,030,907 2,910,031 2,871,081 3,011,411 2,753,381
Muskegon County
Northside 109,387 149,340 198,890 187,710 175,390
Roosevelt Park 121,391 97,269 89,968 154,266 236,150
North Muskegon 319,533 300,428 229,008 304,957 313,631
Muskegon Townshic 330,878 284,681 323,273 316,295 314,938
Norton Shores
(Miscellaneous
Services 4,545 4,031 3,977 3,870 4,064
Miscellaneous Outside 888 860 755 845 887
TOTAL 3,917,529 3,746,640 3,716,952 3,979,354 3,798,441
• Assumed 2002 over
2001 Percentage
Increases:
Norton Shores
(Miscellaneous
Services): 5%
Miscellaneous Outside: 5%
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0482.034 Muskegon Water Rate Study 6/11/2003 9:49 AM
Table 4
Projected Billable Flows
Annual Billable Flows, 100 Cubic Foot Units*
2003 2004 2005 2006 2007
,,
Citv 2,780,915 2,808,724 2,836,811 2,865,179 2,893,831
Muskegon County Northside 184,160 193,367 203,036 213,188 223,847
Roosevelt Park 238,512 240,897 243,306 245,739 248,196
North Muskegon 323,040 332,731 342,713 352,994 363,584
Muskegon Townshi• 330,685 347,219 364,580 382,809 401,950
Norton Shores
/Miscellaneous Services 4,267 4,480 4,704 4,939 5,186
Miscellaneous Outside 932 978 1,027 1,078 1,132
TOTAL 3,862,509 3,928,397 3,996,177 4,065,927 4,137,727
'Assumed Annual Increases:
City: 1%
Muskegon County Northside: 5%
Roosevelt Park: 1%
North Muskegon: 3%
Muskegon Township: 5%
Norton Shores (Miscellaneous
Services): 5%
Miscellaneous Outside: 5%
I
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0482.034 Muskegon Water Rate Study 6/11/2003 9:49 AM
Table 5
Projected Equivalent Billable Flows
Annual E uivalent Billable Flows, 100 Cubic Foot Units
2003 2004 2005 2006 2007
Ci!', 2,780,915 2,808,724 2,836,811 2,865,179 2,893,831
Muskegon County Northside 230,199 241,709 253,795 266,485 279,809
Roosevelt Park 321,991 325,210 328,463 331,747 335,065
North Muskegon 436,104 449,187 462,663 476,543 490,839
Muskegon Townshio 446,425 468,746 492,183 516,792 542,632
Norton Shores
(Miscellaneous Services' 8,533 8,960 9,408 9,878 10,372
Miscellaneous Outside 1,397 1,467 1,541 1,618 1,699
TOTAL 4,225,564 4,304,004 4,384,863 4,468,242 4,554,246
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0482.034 Muskegon Water Rate Study 6/11/2003 9:49 AM
Table 6
Water Revenue History
Revenue Description 1998 1999 2000 2001 2002
!l_eady-to-Serve Charge Revenue:
-
City of Muskegon 548,820 505,569 552,299 526,416 582,291
'--.
Muskegon Township 74,824 65,954 81,344 82,259 83,902
Other Outside-City 14,253 16,290 15,106 14,445 19,110
Total 637,897 587,813 648,749 623,120 685,303
Percentage of Total Revenue 19% 17% 18% 17% 19%
Commodity Charge Revenue:
City of Muskegon 1,818,544 1,862,420 1,923,624 2,017,646 1,844,765
Muskegon Township 496,317 427,022 463,896 351,088 349,581
Other Outside-City 421,249 497,765 485,324 577,071 644,528
Total 2,736,110 2,787,207 2,872,844 2,945,805 2,838,874
Percentage of Total Revenue 81% 83% 82% 83% 81%
Total Revenue:
City of Muskegon 2,367,364 2,367,989 2,475,923 2,544,062 2,427,056
Muskegon Township 571,141 492,976 545,240 433,347 433,483
Other Outside-City 435,502 514,055 500,430 591,516 663,638
Total 3,374,007 3,375,020 3,521,593 3,568,925 3,524,177
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0482.034 Muskegon Water Rate Study 6/11/2003 9:50 AM
Table 7
Water System Budgeted Capital improvements 2003 Through 2007
2003 2004
2003 (Revised 2004 (Revised
591 Water (Budget) Estimate) (Budget) Estimate) 2005 2006 2007
Street Projects, Associated
Utility Work:
90075 Thompson, Plum/Edgewater 50,000 50,000 - - - -
90074 Edgewater, Thompson/Wilcox 15,000 15,000 - - - -
91031 Hackley Ave, Huson/Seaway 5,000 5,000 - - - -
92005 Nims Street Tank Painting 200,000 200,000 - - - -
91027 Terrace St., Iona to Peck 150,000 150,000 - - - -
91025 Washington, Hudson/Lakeshore 140,000 140,000 - - - -
96017 Shoreline Drive East 100,000 100,000 - - - -
92006 Water Main Replacements 200,000 200,000 - - - -
92007 Breakwall - Beach Street 60,000 60,000 - - - -
Subtotal: 920,000 920,000 750,000 750,000 750,000 750,000
Water System Bonded
Improvements:
92008 Filter Rehabilitation - - 1,392,300 - - - -
92009 Sediment Basin Rehabilitation - - 3,422,950 - - - -
92010 NPDES Discharge Elimination - - 816,850 - - - -
92011 Aux Pump Sta Conversion - - 1,939,700 - - - -
Water Filtration Plant
Improvements ($16,262,000,
100% City) **: - - 16,262,000 - - -
Cross Channel Water Main
($6,838,000, 0% Ctty) **: - - - - - -
Muskegon Township Storage
Tank and Pump Station
($1,808,000, 0% City) **: - - - - - -
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SmartRate Muskegon Water Rate Study
0482.034 5/30/2003 8:40 AM
-----
Table7
Water System Budgeted Capital improvements 2003 Through 2007
2003 2004
,_
.....
2003 (Revised 2004 (Revised
591 Water (Budget) Estimate) (Budget) Estimate) 2005 2006 2007
Bronze Intake Screens, Carbon
Feed Pump Replacement,
Harvey Street Booster Station
Improvements, Harvey Street
Reservoir Fill Valve, Keating
Street Booster Station, Intake
Sampling Line and Pump,
NaOCI Carrier Water Softener
($797,000, 100% City, to be
completed by 2013.
Construction assumed to be
done after 2007 in this table) - - - - - -
Subtotal: - - ·7,571,800 16,262,000 - - -
Less Previous Bond Proceeds
Available: - - - 4,500,000 - - -
Less Muskegon Twp Payment: - - - 1,000,000 - -
Grand Total: 920,000 920,000 7,571,800 11,512,000 750,000 750,000 750,000
* Amount for 2004 - 2007: 750,000
** Per Reliability Studv
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0482.034 5/30/2,'c.3 8:40 AM
Table 8
Water System Schedule of Indebtedness 2003 Through 2007
Date of Issue Amount of Issue 2003 2004 2005 2006 2007
October 1, 1993 $5,465,000
Interest Payable 40,500 40,500 40,500 40,500 40,500
Prinicipal Payable* - - - - -
Total Principal and Interest 40,500 40,500 40,500 40,500 40,500
* Interest rate is 0% until 2012.
In 2012 interest rate is 4.5%.
Total principal and interest
payments will be $480,375 in
2012 and $460,125 in 2013
(final payment)
March 2, 1999 $9,575,000
Interest Payable 377,059 361,380 344,704 326,899 308,168
Prinicipal Payable 405,000 420,000 435,000 455,000 470,000
Total Principal and Interest 782,059 781,380 779,704 781,899 778,168
2004 $10,800,000
Total Principal and Interest** - - 692,820 692,820 692,820
** Bond Issue = $16,262,000
less $4,500,000 less
$1,000,000 = $10,762,000
(Use $10,800,000). Per City:
20 years at 2.5% with level
payments beginning in 2005
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SmartRate Muskegon Water Rate Study
0482.034 5/30/2003 8:59 AM
Table 9
Water System Expenses
2000 2001 2002 2003 2004 2004(Rev
Acct 591 WATER FUND (Actual) (Actual) (Actual) (Budget) (Budget) Est) 2005 2006 2,007
Operating
Expenditures
30548 Administration
5100 Salaries & Benefits - - - - - - - - -
5200 Operating Supplies - 10 " " - - - - -
Contractual Services
(Insurance/Indirect
Costs/Administration
5300 Fee)* 359,581 453,613 389,093 513,566 536,676 536,676 560,827 586,064 612,437
5400 Other Expenses 7,431 6,144 7,966 - - - - - -
5700 Capital Outlays 45 - - - - - - - -
Other Financing Uses
(Interest on Water
5900 Bonds) 495,727 471,301 453,666 417,559 401,880 401,880 385,204 367,399 348,668
Other Cash Uses and
Adjustments
(Prinicipal on Water
Bonds) 302,213 591,739 360,596 405,000 420,000 420,000 435,000 455,000 470,000
Debt Service for 2004
$10,800,000 Bond - - - " - - 692,820 692,820 692,820
Subtotal 1,164,997 1,522,807 1,211,321 1,336,125 1,358,556 1,358,556 2,073,851 2,101,283 2,123,925
Tetra Tech
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0482.034 5/30/2003 9:07 AM
_, ___
Table9
Water System Expenses
2000 2001 2002 2003 2004 2004 (Rev
Acct 591 WATER FUND (Actual) (Actual) (Actual) (Budget) (Budget) Est) 2005 2006 2,007
Operating
Expenditures
60559 Maintenance - City
5100 Salaries & Benefits * 698,628 788,512 712,770 610,798 638,284 638,284 667,007 697,022 728,388
5200 Operating Supplies ** 237,968 235,205 169,124 107,431 110,654 110,654 113,974 117,393 120,915
5300 Contractual Services * 293,031 350,528 336,967 335,775 350,885 350,885 366,675 383,175 400,418
5400 Other Expenses *** 71,680 12,356 33,577 9,480 10,000 10,000 10,000 10,000 10,000
5700 Capital Outlays *** 5,129 7,327 2,256 9,500 10,000 10,000 10,000 10,000 10,000
5900 Other Financing Uses - - - - - - - - -
Subtotal 1,306,436 1,393,928 1,254,694 1,072,984 1,119,823 1,119,823 1,167,655 1,217,590 1,269,720
uperating
Expenditures
Maintenance -
60660 Township
5100 Salaries & Benefits * 3,190 206,700 203,610 286,738 299,641 299,641 313,125 327,216 341,940
5200 Operating Supplies ** 863 9,526 10,219 14,491 14,926 14,926 15,374 15,835 16,310
5300 Contractual Services * 47 120,508 126,067 129,494 135,321 135,321 141,411 147,774 154,424
5400 Other Expenses **** - 469 792 443 500 500 500 500 500
5700 Capital Outlays ***** - 800 3,289 4,350 5,000 5,000 5,000 5,000 5,000
5900 Other Financing Uses - - - - -
Subtotal 4,100 338,003 343,977 435,516 455,388 455,388 475,409 496,325 518,174
Tetra Tech
SmartRate Muskegon Water Rate Study
0482.034 5/30/2003 9:07 AM
Table 9
Water System Expenses
2000 2001 2002 2003 2004 2004 (Rev
Acct 591 WATER FUND (Actual) (Actual) (Actual) (Budget) (Budget) Est) 2005 2006 2,007
Operating
Expenditures•
60558 Filtration
5100 Salaries & Benefits * 469,642 440,416 476,572 521,626 545,099 545,099 569,629 595,262 622,049
5200 Operating Supplies ** 121,252 . 115,076 129,191 112,195 115,561 115,561 119,028 122,599 126,276
5300 Contractual Services * 285,375 349,281 340,767 441,100 460,950 460,950 481,692 503,368 526,020
5400 Other Expenses ***** 3,546 2,374 4,067 4,150 5,000 5,000 5,000 5,000 5,000
5700 Capital Outlays ****** 27,339 104,236 37,326 72,700 25,000 25,000 25,000 25,000 25,000
5900 Other Financing Uses . . . . .
Subtotal 907,154 1,011,383 987,923 1,151,771 1,151,610 1,151,610 1,200,349 1,251,229 1,304,345
90000 Project Expenditures
5200 Operating Supplies . . - - - - . - -
Contractual Services
(Budgeted Capital
5300 Improvements) 665,056 1,363,419 1,253,024 920,000 7,571,800 11,512,000 750,000 750,000.. ,;· 750,000
5700 Capital Outlays . . . . - . . . .
Equipment
Replacement ******* . 140,000 140,000 140,000 140,000
Subtotal 665,056 1,363,419 1,253,024 920,000 7,571,800 11,652,000 890,000 890,000 890,000
Grand Total 4,047,743 5,629,540 5,050,939 4,916,396 11,657,177 15,737,377 5,807,264 5,956,426 6,106,165
• Increase 2004/2007: 4.50% per year
•• Increase 2004/2007: 3.00% per year
••• Amount 2004/2007: 10,000 all years
**** Amount 2004/2007: 500 all years
***** Amount 2004/2007: 5,000 all years
****** Amount 2004/2007: 25,000 all years
******* Amount 2004/2007: 140,000 all years
Tetra Tech
Smart Rate Muskegon Water Rate Study
0482.034 5/30/2003 9:07 AM
Table 10
Water System Expense Allocations
•"" VV,.. I t:H
FUND 2004
Account 2004 (Revised
Number(s) Allocated To: (Budget) Estimate) 2005 2006 2007
30548, 60559,
60558, 60660,
90000 All Customers 11,657,177 15,737,377 5,807,264 5,956,426 6,106,165
Less State Grant (100,000) - - - -
Less Bond Proceeds (7,600,000) (10,800,000) - - -
Less Interest Income (50,000) (50,000) (50,000) (50,000) (50,000)
Less Muskegon
Township Contract
Operations Income (200,000) (200,000) (200,000) (200,000) (200,000)
Net to All Customers
(Expenses less State
Grant, Bond Proceeds,
Interest Income, and
Muskegon Township
Contract Operations
Income) 3,707,177 4,687,377 5,557,264 5,706,426 5,856,165
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SmartRate Muskegon Water Rate Study
0482.034 5/29/2003 4:40 PM
Table 11
Projected Water Rate Calculations
CITY: Proposed 2004 2005 2006 2007
vommomty 1.,;narge t'er 100 1.,;uoIc r-eet
•" (Expenses Allocated to All
Customers/Total Equivalent Billable
Flow) x 1.00 0,88 1.09 1.27 1.28 1.29
MUSKEGON COUNTY NORTHSIDE:
"ommouIty u,arge l'er 100 l.;UDJc t-eet
= (Expenses Allocated to All
Customers/Total Equivalent Billable
Flow) X 1.25 1.10 1.36 1.58 1.60 1.61
ROOSEVELT PARK:
..,ommomty "narge Per 100 (;UoJc t-eet
= (Expenses Allocated to All
Customers/Total Equivalent Billable
Flow) x 1.35 1.18 1.47 1.71 1.72 1.74
NORTH MUSKEGON:
..;ommodIty "narge Per Iu0 cuoIc Feet
= (Expenses Allocated to All
Customers/Total Equivalent Billable
Flow) x 1.35 1.18 1.47 1.71 1.72 1.74
MUSKEGON TOWNSHIP:
i:,ase CommoaIty 1.,;narge t'er 100 1.,;uoIc
=
Feet (Expenses Allocated to All
Customers/Total Equivalent Billable
Flow) x 1.35 1.18 1.47 1.71 1.72 1.74
.
NORTON SHORES (MISCELLANEOUS
SERVICES):
Commodity v11arge t'er 100 vUDIC i-eet
= (Expenses Allocated to All
Customers/Total Equivalent Billable
Flow) x2.00 1.75 2.18 2.53 2.55 2.57
MISCELLANEOUS OUTSIDE:
vommomty 1.,;narge t'er 100 1.,;uoIc r-eet
= (Expenses Allocated to All
Customers/Total Equivalent Billable
Flow) x 1.50 1.32 1.63 1.90 1.92 1.93
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0482.034 Muskegon Water Rate Study 6/11/2003 9:52 AM
Table 12
Water System Revenues
2000 2001 2002 2003 2004 2004
591 WATER FUND (Actual) (Actual) (Actual) (Budget) (Budget) (RevEst) 2005 2006 2007
Subtotal 3,936,337 4,717,919 4,169,079 5,100,000 11,657,177 15,737,377 , 5,807,264 5,956,426 6,106,165
Expenditures 4,047,743 5,629,540 5,050,939 4,916,396 11,657,177 15,737,377 5,807,264 5,956,426 6,106,165
Available Cash Balance,
Beginning of Year*' 6,094,347 5,982,941 5,071,320 4,189,460 4,373,064 8,873,064 4,373,064 4,373,064 4,373,064
Transfer from Cash
Balance** 111,406 911,621 881,860 (183,604) - 4,500,000 - - -
Available Cash
Balance, End of Year 5,982,941 5,071,320 4,189,460 4,373,064 4,373,064 4,373,064 4,373,064 4,373,064 4,373,064
*' 2004 (Revised
Estimate) Available Cash
Balance increased by
$4,500,000 to account
for previous bond issue
proceeds available)
** Amount for 2004 -
2007: 50,000
Tetra Tech
SmartRate Muskegon Water Rate Study
0482.034 6/11/2003 9 :54 AM
Table 12
Water System Revenues
2000 2001 2002 2003 2004 2004
591 WATER FUND (Actual) (Actual) (Actual) (Budget) (Budget) (RevEst) 2005 2006 2007
Revenues
Special Assessments - - - - - - - - -
EDA Grant Seaway Ind
Park - - - - - - - - -
State Grant Shoreline
Drive - - - 100,000 100,000
State Shared Revenue - - - - - - - - -
Charges: City (2000,
2001 included all
customers; 2002 Rev
Est, 2003 Budget
included all except
Muskegon Twp) 3,531,540 3,980,059 4,084,612 4,500,000 2,439,756 3,058,907 3,595,302 3,659,143 3,721,088
Charges: Muskegon
County Northside 201,959 263,239 321,653 340,329 359,797
Charges: Roosevelt Park 282,489 354,178 416,285 423,677 430,849
Charges: North
Muskegon 382,603 489,198 586,367 608,596 631,154
Charges: Muskegon
Township - - - 450,000 391,658 510,499 623,780 659,999 697,754
Muskegon Township
Contract Operations
Income - - - - 200,000 200,000 200,000 200,000 200,000
Charges: Norton Shores
(Miscellaneous Services) 7,486 9,758 11,923 12,616 13,337
Charges: Miscellaneous
Outside - - - - 1,226 1,598 1,953 2,066 2,184
Hydrant Rental -
Muskegon Twp - - - - - - - - -
Interest Income* 320,696 230,864 84,467 50,000 50,000 50,000 50,000 50,000 50,000
Operating Transfers In - 454,812 - - - - - - -
Other (NEW BOND
ISSUANCE) 84,101 52,184 - - 7,600,000 10,800,000 - - -
Tetra Tech
SmartRate Muskegon Water Rate Study
0482.034 6/11/2003 9:54 AM
Table 13
I Water Cost Comparison
nverage
Annual
Percent
Change:
Percent Percent Percent Percent Percent Current
CITY Current Proposed ChanQe 2004 Change 2005 Change 2006 Change 2007 Change to 2007
Quarterly Bill for a 5/8" Average Usage Residential
Customer and 26 Units Der Quarter:
Meter Size:
5/8" 7.50 0.00 0.00 0.00 0.00 0.00
100 Cubic Foot Usaae:
26 17.42 22.81 28.32 32.95 33.20 33.43
Total: 24.92 22.81 -8% 28.32 24% 32.95 16% 33.20 1% 33.43 1% 7%
Quarterly Bill for a 1" High Usage Residential
Customer and 100 Units oer Quarter:
Meter Size:
1" 18.75 0.00 0.00 0.00 0.00 0.00
100 Cubic Foot Usage:
100 67.00 87.73 108.91 126.74 127.71 128.59
Total: 85.75 87.73 2% 108.91 24% 126.74 16% 127.71 1% 128.59 1% 10%
Quarterly Bill for a 2" Commercial Customer and
500 Units per Quarter:
Meter Size:
2" 60.00 0.00 0.00 0.00 0.00 0.00 .
100 Cubic Foot Usage:
500 335.00 438.66 544.54 633.69 638.55 6~.93
Total: 395.00 438.66 11% 544.54 24% 633.69 16% 638.55 1% 642.93 1% 13%
Quarterly Bill for a 3" Commercial Customer and
2,000 Units per Quarter:
Meter Size:
3" 112.50 0.00 0.00 0.00 0.00 0.00
100 Cubic Foot Usage:
2,000 1,340.00 1,754.64 2,178.15 2,534.75 2,554.22 2,571.74
Total: 1,452.50 1,754.64 21% 2,178.15 24% 2,534.75 16% 2,554.22 1% 2,571.74 1% 15%
Quarterly Bills (Commodity Charge Portion Only)
for Quarterlv 100 Cubic Foot Usaae as Noted:
Lorin Industries:
43,496 29142.32 38,159.96 31% 47,370.34 24% 55,125.72 16% 55,549.08 1% 55,930.17 1% 18%
state Prison:
42,669 28,587.90 37,433.98 31% 46,469.14 24% 54,076.97 16% 54,492.27 1% 54,866.11 1% 18%
Sealed Power Comcanv:
12,805 8,579.35 11,234.10 31% 13,945.59 24"/o 16,228.73 16% 16,353.36 1% 16,465.55 1% 18%
West Michicran Steel:
10,455 7,004.52 9,171.95 31'% 11,385.72 24% 13,249.77 16% 13,351.52 1% 13,443.12 1% 18%
Hacklev Hosoital:
9,623 6,447.24 8,442.24 31% 10,479.88 24% 12,195.63 16% 12,289.29 1% 12,373.60 1% 18%
Hv-Lift Inc.:
Tetra Tech
SmartRate
0482.034 Muskegon Water Rate Study 6/11/2003 9;55 AM
Table13
Water Cost Comparison
ttVerage
Annual
Percent
Change:
Percent Percent Percent Percent Percent Current
CITY Current Proposed Chanae 2004 Change 2005 Change 2006 Change 2007 Change to 2007
9,008 6,035.36 7,902.91 31% 9,810.37 24°/4, 11,416.51 16% 11,504.19 1% 11,583.11 1% 18%
Mercv General Health Partners:
8,885 5,952.78 7,794.78 31% 9,676.15 24% 11,260.31 16% 11,346.78 1% 11,424.63 1% 18%
MUSKEGON COUNTY NORTHSIDE: Annual
Commoditv Charae Revenue
100 Cubic Foot Usaoe, {based on Actual 2002):
175,390 146,889 192,342 31% 238,766 24% 277,856 16% 279,990 1% 281,911 1% 18%
ROOSEVELT PARK: Annual Commodity Charge
Revenue
100 Cubic Foot Usaae, £based on Actual 2002\:
236,150 197,776 258,974 31% 347,199 34% 347,199 0% 404,042 16% 409,938 1% 21%
NORTH MUSKEGON: Annual Commodity Charge
Revenue
100 Cubic Foot Usaae, £based on Actual 2002\:
313,631 262,666 343,944 31% 461,116 34% 536,609 16% 540,730 1% 544,439, 1% 21%
: 1.,ommou1ty .....arge
Revenue (based on 2002 billable flow) vs. 2002
Total Ready-to-Serve and Commodity Charge
Revenue
100 Cubic Foot Usaae, {based on Actual 2002\:
314,938
Readv-to..Serve 83,902 0
Commodi 349,581 373,007
Contract Orierations 0 0 200,000 200,000 200,000 200,000
Total 433,483 373,007 -14% 663,037 78% 738,845 11% 742,983 1% 746,708 1% 14%
NORTON SHORES fMiscellaneous Services\
CommoditV CharQe:
Per 100 Cubic Feet 1.34 1.75 31% 2.18 24% 2.53 16% 2.55 1% 2.57 1% 18%
MISCELLANEOUS OUTSIDE
Commoditv Charae:
Per 100 Cubic Feet: 1.01 1.32 31% 1.63 24% 1.90 16% 1.92 1% 1.93 1% 18%
Tetra Tecti
SmartRate
0482.034 Muskegon Water Rate Study 6/11/2003 9:55 AM
Table 14
Revenue Percent-to-Billable Flow Percent by User Class
USER CLASS 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Citv:
Flow, 100 Cubic Feet: 3,030,907 2,910,031 2,871,081 3,011,411 2,753,381 2,780,915 2,808,724 2,836,811 2,865,179 2,893,831
Percent of Total Flow: 77.37% 77.68% 77.25% 75.68% 72.49% 72.00% 71.50% 70.99% 70.47% 69.94%
Revenue: $2,367,364 $2,367,989 $2,475,923 $2,544,062 $2,427,056 $2,439,756 $3,058,907 $3,595,302 $3,659,143 $3,721,088
Percent of Total
Revenue: 70.17% 70.17% 70.31% 71.29% 68.87% 62.45% 62.59% 62.45% 61.96% 61.45%
Muskeaon Two:
Flow, 100 Cubic Feet 330,878 284,681 323,273 316,295 314,938 330,685 347,219 364,580 382,809 401,950
Percent of Total Flow: 8.45% 7.60% 8.70% 7.95% 8.30% 8.57% 8.84% 9.13% 9.42% 9.72%
Revenue: $571,141 $492,976 $545,240 $433,347 $433,483 $591,658 $710,499 $823,780 $859,999 $897,754
Percent of Total
Revenue: 16.93% 14.61% 15.49% 12.15% 12.31% 15.15% 14.54% 14.31% 14.57% 14.83%
Other Outside-Citv:
Flow, 100 Cubic Feet 555,744 551,928 522,598 651,648 730,122 750,909 772,453 794,786 817,938 841,946
Percent of Total Flow: 14.19% 14.74% 14.06% 16.38% 19.23'¾ 19.45% 19.67% 19.89% 20.12% 20.35%
Revenue: $435,502 $514,055 $500,430 $591,516 $663,638 $875,764 $1,117,971 $1,338,181 $1,387,284 $1,437,323
Percent of Total
Revenue: 12.91% 15.24% 14.22% 16.58% 18.84% 22.42% 22.88% 23.25% 23.49% 23.74%
City Flow% 77.37% 77.68% 77.25% 75.68% 72.49% 72.00% 71.50% 70.99% 70.47% 69.94%
Citv Revenue % 70.17% 70.17% 70.31% 71.29% 68.87% 62.45% 62.59% 62.45% 61.96% 61.45%
Non-City Flow % 22.64% 22.34% 22.76% 24.33% 27.53% 28.02% 28.51% 29.02% 29.54% 30.07%
Non-Citv Revenue % 29.84% 29.85% 29.71% 28.73% 31.15% 37.57% 37.42% 37.56% 38.06% 38.57%
Total Flow 100
Cubic Feet: 3,917,529 3,746,640 3,716,952 3,979,354 3,798,441 3,862,509 3,928,397 3,996,177 4,065,927 4,137,727
Total Revenue: $3,374,007 $3,375,020 $3,521,593 $3,568,925 $3,524,177 $3,907,177 $4,887,377 $5,757,264 $5,906,426 $6,056,165
Tetra Tech
SmartRate
0482.034 Muskegon Water Rate Study 5/29/2003 4:52 PM
Glossary of Terms
Ancillary Charges - Charges for services not recovered through water rates. These services are not
directly related to general water service and are to benefit specific customers.
Bond Coverage - A ratio of revenues in excess of expenses to cover debt service payment.
Bond Covenants - Contractual commitments to bondholders.
Cash-needs Approach - A method of determining user charges based on the annual cash requirements
of the utility operation.
Cost Allocation - The procedure for assigning costs to utility service functions.
Cost of Service - Operating expenses, capital expenditures, and other cash requirements to provide
utility service.
Debt Service - Cash requirements for the payment of interest and principal on revenue bonds.
Rate Blocks - A rate design method where different rates are charged for defined volumes of usage.
Revenue Bonds - Long-term debt payable from the revenues derived from user charges and fees.
Revenue Requirements - Financial resources required to fund the utilities operation and maintenance
expenses, annual debt service payments, and capital replacement/renewal costs.
User Charges - Costs assessed to customers for utility services including volume rates, billing and
customer service charges.
Muskegon Water cost of Service Study
· toL\dJ
AGENDA ITEM NO. .2..003-, . to ?u\)
CITY COMMISSION MEETING 8/12/03
TO: Honorable Mayor and City Commissioners
FROM: Bryon L. Mazade, City Manager
DATE: July 30, 2003
RE: Energy Savings Performance Contract - L. C. Walker Arena
SUMMARY OF REQUEST:
To approve a Letter of Intent with Siemens Building Technologies, Inc., to enter into a
Guaranteed Savings Performance Contract for the L. C. Walker Arena.
FINANCIAL IMPACT:
$15,000
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
To approve.
COMMITTEE RECOMMENDATION:
O:COMMON\DEPTMENT\ADMIN\AGNDAFRM
JMS - 0: (SIEMENS-LCW CONTRACT)
c)ooJ ·· c; ,; (al Estala
Transfer fa:,.: and Stale Real Estate
STATE TREASURER DEED Transfer Tax under MCL secUons 207.505
(H) and 207.526 (H)(I) ,espaclively
Issued under aulhonly or Sed1on 21167a, ..icL 184882
On this 2nd of May, 2000 the grantor, Mark A. Murray, Stale Treasurer, Stale of Michigan, 430 W. Allegan St., Lansing,
Michigan 48922, by his aut1!Prized representa!lve Thomas E. Willard, quit-claims the following described property to the State of
Michigan, whose address is,;iepartment of Natural Resources, Real Estate Division,P.O. Box 30448, Lansing, Michigan 48909-7948.
Title became absolute in lhe Slate or Michigan by court decree of tile Circuit Court of the County named below and nonredemptlon
from lhe 1999 tax sale within the slalulory period. Under section 67a of P.A. 206 of 1893,as amended, the grantor, for and in
consideration of lhe premises, conveys lo the grantee, Slate of Michigan, the followlng;
MUSKEGON County, State of Michigan.
Township of Blue Lake SN186
FRUITVALE
Lois 1 to 48 incl Blk 22
610423200100
Township of Blue Lake SN190
FRUITVALE
Lots 37 & 38 Blk 46
610425603700
Township of Blue Lake SN195
SUPERVISOR'S PLAT OF LAKEVIEW ADDITION TO FRUITVALE
Lots 55 & 56 Blk 3
610434305500
Continued on next page
Witnesses:
Drafted b Jan Rial
y Local Property Services Division
Treasury Building
STATE OF MICHIGAN ) Lansing, Michigan 48922
)SS
County of Ingham )
On this 28th day of August ,2000 , the foregoing instrument was acknowledged before me
by Thomas E. W,llard. aulhonzed representallve ot the State Treasurer. /I
My commission expires November 07, 2002
~-@-:,~d~v--4'
. . . .«=L~---
Tom L. Falcon, Notary Public, Ingham County r-0
C\✓
r.
i_._;
NOTICE OF HEARING BEFORE THE CITY COMMISSION
DA TE August 1. 2003
509 Adams
(Address of Property)
TO: All owners and interested parties:
State of Michigan, P.O. Box 30735, Lansing, Ml 48909-8235
Owner
None
(Other interested parties)
On June 5 2003 the Muskegon Housing Board of Appeals made a determination that
the subject property is sub-standard, a public nuisance and a dangerous building under
the City Code and ordered that it be repaired or demolished.
The City Commission will hold a hearing on Tuesday, August 12, 2003 to consider the
above decision of the Housing Board of Appeals. You may appear at this hearing at
5:30 p.m. on Tuesday, August 12, 2003, at the Muskegon City Hall, 933 Terrace
Street, Muskegon, Michigan, with counsel, if you desire, to present any relevant
evidence and arguments concerning the decision to demolish the above structures.
CITY OF MUSKEGON INSPECTIONS DEPT.
~ E HOOSING BOARD OF~PPEALS
By{cGJ-? lfil,
Robtrt B. Grabinski, Director of Inspections
O\INSPECTIONS\GRABINSKI LORRAINE\WORD\CC MEETINGS\STANDARD FORMS\NOTICE OF CITY COMMISSION
HEARING DOC -
CITY OF MUSKEGON
CITY OF MUSKEGON HOUSING (BUILDING) BOARD OF APPEALS
Date: June 6, 2003
To: State of Michigan, P.O. Box 30735, Lansing, Ml 48909-8235
Owners Name & Address
None
Names & Addresses of Other Interested Parties
ORDER TO DEMOLISH STRUCTURE
The Housing Board of Appeals, having received evidence at a scheduled and
noticed meeting held on Thursday, June 5, 2003 does hereby order that the following
structure(s) located at 509 Adams, Muskegon, Michigan, shall be demolished for the
reason that the said structure or structures are found, based upon the evidence before
the Board of Appeals, to be dangerous, substandard and a public nuisance.
The owners or persons interested shall apply for the required permits to demolish the
structure(s) within 30 days from the final determination to concur and demolish, if it is
made by the City Commission. Demolition shall be accomplished no later than 60 days
after a concurrence by the City Commission.
The director of inspections is ordered to place before the Muskegon City
Commission this order and the record in this case to seek concurrence by the City
Commission with the decision of this board, and further to give notice to the owner and
interested parties of the date and time when this matter shall be considered by the City
Commission. This order is not final until concurred with by the City Commission.
O:\INSPECTIONS\GRABINSKI_LORRAINE\WORDIHBA MEETINGS\STANDARD FORMSIORDER TO DEMOLISHDOC
NOTICE TO OWNER AND INTERESTED PARTIES
Please take notice that this decision of the Housing Board of Appeals will be presented
to the City Commission of the City of Muskegon on the date and at a time to be noticed
to you by the Director of Inspections. You are hereby notified that you will have an
opportunity to appear before the said City Commission at that time and to present any
and all evidence or matters relevant to the issue of demolition or repair of the said
structures. This order of the Housing Board of Appeals is not final, but will become final
if and when the City Commission has considered the record and this order, and has
concurred.
The City Commission may concur with this order, or disapprove or modify the
order.
.r
Robert Ei. Grabinski, Director of Inspections
0:IINSPECTIONS\GRABINSKI_LORRAINE\WORD\HBA MEETINGS\STANDARD FORMS\ORDER TO DEMOLISH.DOC
CITY OF MUSKEGON
CITY OF MUSKEGON HOUSING BOARD OF APPEALS
NOTICE OF HEARING
Date: May 22, 2003
Address of the Property: 509 Adams
TO: State of Michigan, P.O. Box 30735, Lansing, Ml 48909-8235
[Name & Address of Owner]
None
[Names & Addresses of Other Interested Parties]
Please take notice that on Thursday, June 5, 2003, the City of Muskegon Housing
Board of Appeals will hold a hearing at 933 Terrace, Muskegon, Ml at 5:30 o'clock
p.m., and at the said hearing consider whether or not the following structure should be
determined to be dangerous, substandard and a nuisance, and demolished, or
repaired.
The reason for this hearing is that you have not complied with the Notice and Order to
Repair or Demolish issued 3/21/03.
At the hearing on Thursday, June 5, 2003, at 5:30 o'clock p.m., at the Muskegon City
Hall, 933 Terrace Street, Muskegon, Michigan, you may appear and present any
relevant evidence to the Housing Board of Appeals and have counsel of your choice
present, if you desire, to show cause why the structure should not be allowed or
ordered demolished.
CITY Of,.Ml,/SKEGON INSPECTION DEPARTMENT,
: : Brn,:z:~t=_-~/),: ,~:~ck·F APPEALS
Robert B. Grabinski, Director of Inspections
0 IINSPECTIONSIGRABINSKI_LORRAINEIWORD\HBA MEETINGS\STANDARD FORMS\NOTICE OF HBA HEARING.DOC
CITY OF MUSKEGON)-~
Inspections Services--'..
Department - · · ··· ·· "
Memo
To: PIONEER RESTORATION
ATTN: DEB
From: Lorraine
CC:
Date: February 13, 2003
Re: REQUEST FOR BOARD UP
PLEASE BOARD THE FOLLOWING PROPERTIES:
--------------------------~
ADDRESS LOCATION TO BOARD/SECURE
>-------------+--------------------~--
509Adams Any broken windows and unsecured doors
IF YOU HAVE ANY QUESTIONS PLEASE DON'T HESITATE TO CALL ME AT
(231) 724-6757.
THANKS!
:11: Page 1
CITY OF MUSKEGON
NOTICE AND ORDER TO REPAIR OR REMOVE (DEMOLISH) A STRUCTURE
DATE: March 21, 2003
Address of the Property: 509 Adams
TO: State of Michigan, P.O. Box 30735. Lansing. Ml 48909-8235
[Name & Address of Owner]
None
(Interested Parties)
The Building Inspection Department of the City of Muskegon has determined that
the structures above described are dangerous, substandard, and constitute a nuisance
in violation of the Dangerous Buildings Ordinance of the City.
You are hereby notified that the City will proceed to demolish or cause the
demolition and removal of the said structure unless you accomplish the actions
indicated below within the time limits indicated (only one to be checked):
1. X Obtain the issuance of all permits required to accomplish the repair
of the structure defects listed in the attached schedule within
30 days of this notice. All repairs shall be accomplished within the
times set forth in the permits. All work must be physically
commenced within 30 days of the date of this notice.
2. _ __ Obtain the issuance of the appropriate permit for the demolition of
structures within 30 days, and accomplish the demolition thereof
within 60 days of this notice.
The conditions which cause the said structures to be dangerous, substandard and a
nuisance are listed in the attached schedule.
FAILURE TO COMPLY
After 30 days from mailing this notice, if you have not complied with this notice, a
hearing will be scheduled before the City of Muskegon Housing Board of Appeals for
the purpose of enforcing this notice and order and instituting City action to remove the
structure. You will receive notice of that hearing. You may appear and present any
relevant evidence to the Housing Board of Appeals and have counsel of your choice
present, if you desire. You will have the opportunity to show cause why the structure
shall not be ordered demolished.
SCHEDULE OF CONDITIONS
The following conditions are present at the structure at 509 Adams, Muskegon,
Michigan, and cause said structure to be a dangerous or substandard building and a
public nuisance.
Please see the attached inspection report
CITY OF MU~ON INSPECTION DEPART[y1ENT
iM~lLJ~~-
Ro~ert B. Grabinski, Director of Inspections
CITY OF MUSKEGON
DANGEROUS BUILDING INSPECTION REPORT
509 ADAMS
3/19/03
Inspection noted:
I. Interior inspection required by the Inspection Services Dept. Trade inspectors
(plumbing, mechanical, electrical and building).
2. Severe damage to roof system, roof covering must be removed and inspection of
sheathing and rafters will be required.
3. Replace all damaged siding.
4. Repair or replace all damaged doors, windows, and screens on home.
BASED UPON MY RECENT INSPECTION OF THE ABOVE PROPERTY, I HAVE
DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A
DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION
4-23 OF THE MUSKEGON CITY CODE.
TINOWSKI, BUILDING JNSP TOR DATE
\
O:\Inspections\Grabinski_ Lorrainc\Word\DANGEROUS BUILD ING INSPECTION REPORTS\509
ADAMS.doc
HBA Minutes 615/03
DANGEROUS BUILDING NEW CASES:
Case# 03-18 - 509 Adams - State of Ml
There was no one present to represent this case.
Staff Recommendation: Declare this building substandard, a public nuisance,
and dangerous building and forward to city commission for their concurrence.
A motion was made by Clara Shepherd and seconded by Nick Kroes to accept
staff recommendation.
A roll call vote was taken:
AYES: NAYES: EXCUSED: ABSENT:
John Warner Greg Borgman
Randy Mackie
Jon Rolewicz
Nick Kroes
Jerry Bever
Clara Shepherd
The motion carried.
·. ase #03-07 - 2037 Kinsey - Harry & Katherine Jour
There s no one present to represent this case. r. Grabinski gave a history of
ich began with a Police Departme investigation.
Staff Recommen ·on: Declare this buil · g substandard, a public nuisance,
and dangerous buildin and forward t city commission for their concurrence.
A motion was made by Nick s and seconded by Clara Shepherd to accept
staff recommendation.
A roll call vote was tak
AYES: NAYES: EXCU ABSENT:
John Warner. Greg Borgma
Randy M ie
Jon Ro wicz
4 of 8
DATE: August4,2003
TO: Honorable Mayor and Commissioners
FROM: Robert B. Grabinski, Director of Inspection Services
RE: Concurrence with the Housing Board of Appeals Notice and Order
to Demolish. Dangerous Building Case#: 03-02 Address: 424
Orchard.
SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
424 Orchard is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.
Case# & Project Address: #03-02, 424 Orchard, Muskegon , Ml
Location and ownership: This structure is located on Orchard between Wood
and Williams and is owned by the State of Michigan.
Staff Correspondence: A dangerous building inspection was conducted on
4/18/03 with the housing and building inspector. A notice and order to repair or
remove was issued 4/23/03 and on 6/5/03 the HBA declared the structure
substandard and dangerous. The structure has recently gone back to the state
for back taxes.
Owner Contact: There has been no contact.
Financial Impact: CDBG
Budget action required: None
State Equalized value: $8 ,700
Estimated cost to repair: $12,000
Staff Recommendation: To concur with the Housing Board of Appeals decision to
demolish.
City Commission Recommendation: The commission will consider this item at it's
meeting Tuesday, August 12, 2003.
O:\l nspect ions\Grab inski_ Lorraine\ Word\CC MF.F.TINCiS\Agcnda 424 Orchard.doc p;ige I of l
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For The Inspection Department File#: 424584
City of Muskegon
FROM CITY ASSESSOR'S RECORDS
OWNER: Scott Flaska - SJ LLC
PROPERTY: 424 Orchard
PARCEL NO: 24-205-045-0014-00
DESCRIPTION: S 60 ft. Lot 14 Blk 45
FROM RECORDS OF TRANSNATION TITLE
LIBER: 2295
PAGE: 566
DATE OF DEED: October 1, 1999
GRANTOR NAME & ADDRESS: S & J LLC, PO Box 81, Cedar, MI 49621
GRANTEE NAME & ADDRESS: Scott L. Flaska, PO Box 81, Cedar, MI
49621
LIENS OR MORTGAGES: 3417/210
TODAY'S DATE: February 3, 2003
EFFECTIVE DATE: January 8, 2003 at 8:00 AM
Abstracted by: TRAN~~T\~~ TKL~\~~~~
2~(~lz
The above information is to be used for reference purposes only and not to be relied upon as evidence of title and/or
encumbrances. Accordingly, said information is furnished at a reduced rate, and the Company's liability shall in no event
exceed the amount paid for said infonnation, should evidence of title and/or encumbrances be desired, application for title
insurance should be placed with Transnation Title Insurance Company.
STATE OF MIC1IIGAN
COIJNTY OF MUS,EGLN
RECEIVl'O l'OR RECORD
1999 OCT -I AH II• Io
~£',i7.
REG -7?'
,!.,",If'
.,.J,tt~~
isren '· , ·:,ws
QUIT CLAIM DEED
Dated _ _10TH,_ _ _THIS DAYOF_ _JULY_ _1997_.
The Grantor(s) _,.s,.&J._L.,,L.,c,__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~
Whose AddreH la/are P.O. BOX 81. CEDAR, Ml 49621
Convey(s) and Quit Clalm(s) to SCOTT L. FLASKA, A MARRIED MAN ("GRANTEE($)"),
Whose address la/are P.O. BOX 81, CEDAR, Ml 49621
the following described premises situated In the CITY of _,MnU""Se,K:,,Es,Ga.,O<>N,__ _ _ _ _ _ _ __
County of MUSKEGON and State of Michigan :
ORIGINAL PLAT
S 60 FT LOT 14 BLK 45
AKA: 424 ORCHARD, MUSKEGON, Ml 49442
61-31-20-455-020
exempt under County transfer tax sec S(a) and State transfer tax 6(a)
for the sum of LESS THAN ONE HUNDRED DOLLARS AND 001100 Do/lars($1esa than 100.00).
s~oed
--scorr L. FLASKA -GEN PARTNER
STATE OF MICHIGAN )
ss.
COUNTY OF_ _LEELANAU_ _ __ )
The foregoing lnstrumsnt wao acknowledged before me th/1__1OTH_day of_JULY_1997_
by_SCOTT, TOM & SHELLY.
NOTARY PUBLIC,
_ _LEELANAU_ _COUNTV, MICHIGAN
MY COMMISSION EXPIRES,_ _ _5"'--,::_J,._,lS':;...·-e:,0,_.,o()<:.:...:J-..::...=...._ __
/4RAFTED BY:
SCOTT L. FLASKA
P.O. BOX81
CEDAR, MICH. 49621
ll3ER 3 . . l 1A6£ 2 I 0
-~?.,tr:· OF M:C! W}4N
CO!J.1, ,y OF MUS,i:GON
j
RECEt>'ED FOR RECORD
~111 11,\Y -8 Alt 8: 33
Mknlg-, D°"art"""'I ol T,-.ry, LPS
This lormis Issued under !he authority
3121/1-00,
of Mel, Section 211.78g
CERTIFICATE OF FORFEITURE OF REAi. PROPERTY
On March 1, 2002 the following real property was forfeited to the MUSKEGON
County Treasurer for NON PAYMENT OF PROPERTY TAXES forthe
year(s) 2000
This propeiiy will be
tilled absolutely In the name of the foreclosing-governmental unit if not
redeemed within 21 days after entry of a judgment of foreclosure pursuant to Section 211.78k
of P.A. 123 of 1999. After this date parties of interest In this property will have NO FURTHER
RIGHT TO REDEEM.
noperty IU NO.:
61-24-205-045-0014-00
UW"!er accorutng lO ,ax recoru
S J LLC'
,...,...... ress: 424 ORCRAJlD AVE Amount for Wllch property 'MS forfeited
MUSKEGON MI $ 1,360.64
r-rope ,, ....... scnpuon:
S 60 FT LOT 1-4 BLK 45
Prepared by: Sign ture of County Treasurer
- kc.--,
JAN A. KOENS
990 Terrace
Muskegon HI 49442
"'
Prin Name:
~-
~ ,\. KOtNS
City of Muskegon Property lnfrinnation
jHome Help" Tools T Oep /r:ir; /h,H' hn., \ i r-fn, ')T r'l=')'){)Ll_ Q/jt)(l/\'";.
NOTICE OF HEARING BEFORE THE CITY COMMISSION
DATE: August 1, 2003
424 Orchard
(Address of Property)
TO: All owners and interested parties:
State of Michigan, 3rd Floor, Treasury Dept., Lansing, Ml 48922
Owner
None
(Other interested parties)
On June 5, 2003 the Muskegon Housing Board of Appeals made a determination that
the subject property is sub-standard, a public nuisance and a dangerous building under
the City Code and ordered that it be repaired or demolished.
The City Commission will hold a hearing on Tuesday, August 12, 2003 to consider the
above decision of the Housing Board of Appeals. You may appear at this hearing at
5:30 p.m. on Tuesday, August 12, 2003, at the Muskegon City Hall, 933 Terrace
Street, Muskegon, Michigan, with counsel, if you desire, to present any relevant
evidence and arguments concerning the decision to demolish the above structures.
CITY OF MUSKEGON INSPECTIONS DEPT.
F~.~--J,~f-HOUSING BOARD OF APPEALS
s> U-- f _ ~ J1 · •
Robe,,.,, B. Grabinski, Director of Inspections
OIINSPECTIONSIGRABINSKI_LORRAINEIWORDICC MEETINGSISTANDARD FORMSINDTICE OF CITY COMMISSION
HEARll'
L
., < .,
~
'
Rob1rrt B. Grabinski, Director of Inspections
O:\INSPECTIONS\GRABINSKI_LORRAINE\WORDIHBA MEETINGS\STANDARD FORMS\ORDER TO DEMOLISH.DOC
CITY OF MUSKEGON
CITY OF MUSKEGON HOUSING BOARD OF APPEALS
NOTICE OF HEARING
Date: May 22, 2003
Address of the Property: 424 Orchard
TO: Scott Flaska, P.O. Box 81, Cedar, Ml 49621
[Name & Address of Owner]
Muskegon County Treasurer. P.O. Box 177, Muskegon, Ml 49443
[Names & Addresses of Other Interested Parties]
Please take notice that on Thursday, June 5, 2003, the City of Muskegon Housing
Board of Appeals will hold a hearing at 933 Terrace, Muskegon. Ml at 5:30 o'clock
p.m., and at the said hearing consider whether or not the following structure should be
determined to be dangerous, substandard and a nuisance, and demolished, or
repaired.
The reason for this hearing is that you have not complied with the Notice and Order to
Repair or Demolish issued 4/23/03.
At the hearing on Thursday, June 5, 2003, at 5:30 o"clock p.m., at the Muskegon City
Hall, 933 Terrace Street, Muskegon, Michigan, you may appear and present any
relevant evidence to the Housing Board of Appeals and have counsel of your choice
present, if you desire, to show cause why the structure should not be allowed or
ordered demolished.
CITY OF MUSKEGON INSPECTION DEPARTMENT,
O4LF/OF THE HOrf ING ~OARD OF APPEALS
By J{CJi::._f v< ,~ A,. Jz.
Robert B. Grabinski, Director of Inspections
0 IINSPECTIONSIGRABINSKI_LORRAINE\WORD\HBA MEETINGS\STANDARD FORMS\NOTICE OF HBA HEARINGDOC
CITY OF MUSKEGON
NOTICE AND ORDER TO REPAIR OR REMOVE (DEMOLISH) A STRUCTURE
DATE: April 23, 2003
Address of the Property: 424 Orchard
TO: Scott L. Flaska, P.O. Box 81, Cedar. Ml 49621
[Name & Address of Owner]
Muskegon County Treasurer. P.O. Box 177. Muskegon, Ml 49443
(Interested Parties)
The Building Inspection Department of the City of Muskegon has determined that
the structures above described are dangerous, substandard, and constitute a nuisance
in violation of the Dangerous Buildings Ordinance of the City.
You are hereby notified that the City will proceed to demolish or cause the
demolition and removal of the said structure unless you accomplish the actions
indicated below within the time limits indicated (only one to be checked):
1. _.,_,X_ Obtain the issuance of all permits required to accomplish the repair
of the structure defects listed in the attached schedule within
30 days of this notice. All repairs shall be accomplished within the
times set forth in the permits. All work must be physically
commenced within 30 days of the date of this notice.
2. _ __ Obtain the issuance of the appropriate permit for the demolition of
structures within 30 days, and accomplish the demolition thereof
within 60 days of this notice.
The conditions which cause the said structures to be dangerous, substandard and a
nuisance are listed in the attached schedule.
FAILURE TO COMPLY
After 30 days from mailing this notice, if you have not complied with this notice, a
hearing will be scheduled before the City of Muskegon Housing Board of Appeals for
the purpose of enforcing this notice and order and instituting City action to remove the
structure. You will receive notice of that hearing. You may appear and present any
relevant evidence to the Housing Board of Appeals and have counsel of your choice
present, if you desire. You will have the opportunity to show cause why the structure
shall not be ordered demolished.
SCHEDULE OF CONDITIONS
The following conditions are present at the structure at 424 Orchard
Muskegon, Michigan, and cause said structure to be a dangerous or substandard
building and a public nuisance.
Please see the attached inspection report
CITY OF MUS~J l~SPECTION ~PARTMENT
{c/lXJ__v] ,{JJ;."1,
Robert B. Grabinski, Director of Inspections
DANGEROUS BUILDING INTERIOR INSPECTION
424 ORCHARD
4/18/03
1. Back porch needs structural repair - no footings, rotted floor joists, ceiling
damage, rafter collapsed, new sheeting and roofing needed.
2. Kitchen roof sagging. Needs structural repair, new sheeting and roofing in that
area.
3. Kitchen wall is bowing out. Structural or siding needs to be addressed.
4. No footings.
5. Interior floors have numerous areas that are unlevel.
6. Light fixtures throughout are missing globes and hardware.
7. Smoke detectors missing.
8. Wiring above dropped ceiling s has open splices and missing J boxes.
9. Flashing missing where service passes through roof.
10. Must provide exterior lighting at all egress doors.
11. Need water heater replaced.
12. Needs to have heat runs cleaned and furnace certified safe for operation by
licensed mechanical contractor. If furnace is found to be unsafe, must be
replaced.
13. Cooper water line in kitchen has come apart at coupling and needs to be
repaired.
14. Water line in bathroom needs to be connected to the faucet and water stopper
is missing.
BASED UPON MY RECENT INSPECTION OF THE ABOVE PROPERTY, I
HAVE DETERMINED THAT THE STRUCTURE DOES MEET THE DEFINITION
OF A DANGEROUS AND/OR SUBSTANDARD BUILDING AS SET FORTH IN
SECTION 4-23 OF THE MUSKEGON CITY CODE.
4-\fO ")
INOWSKI, BUILDING IN ECTOR DATE
HBA Minules 6/5/03
Case #03-02 - 424 Orchard - Scott Flaska
No one was present to represent this case.
Staff Recommendation: Declare this building substandard, a public nuisance,
and dangerous building and forward to city commission for their concurrence.
A motion was made by Clara Shepherd and seconded by Jerry Bever to accept
staff recommendation.
A roll call vote was taken:
AYES: NAYES: EXCUSED: ABSENT:
John Warner Greg Borgman
Randy Mackie
Jon Rolewicz
Nick Kroes
Jerry Bever
Clara Shepherd
The motion carried.
Case #02-87 - 719 Orchard - John Lester & Faye Gil rt
Mr. Gr · ski gave a history of this case and state oth parties involved have
been in con with the Inspection Department. wnership is the issue in this
case. John Lester ned it with Gennie Kell (now deceased) and he and
Gennie's daughter, Fay ilbert, have no eached an agreement on what to do
with the property. Mr. Leste as an at rney, but Ms. Gilbert stated she has not
heard from him. Mr. Grabinski s e e understands, but the reality is that if
they don't resolve the issue and ething, the property will be a vacant lot.
Staff Recommendation: De re this building standard, a public nuisance,
and dangerous building, t delay forwarding to c commission for their
concurrence for 60 da .
A motion was m e by Randy Mackie and seconded by Jon lewicz to accept
staff recomme elation.
A roll caly ote was taken:
/ NAYES: EXCUSED: ABSENT:
A/,S
John Warner Greg Borgman
Randy Mackie
5 of 8
DATE: August4,2003
TO: Honorable Mayor and Commissioners
FROM: Robert B. Grabinski, Director of Inspection Services
RE: Concurrence with the Housing Board of Appeals Notice and Order
to Demolish. Dangerous Building Case#: 01-37 Address: 1253
Calvin.
SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
1253 Calvin is unsafe, substandard, a public nuisance and that it be demolished
within thirty (30) days. It is further requested that administration be directed to
obtain bids for the demolition of the structure and that the Mayor and City Clerk
be authorized and directed to execute a contract for demolition with the lowest
responsible bidder.
Case# & Project Address: #01-37 - 1253 Calvin, Muskegon, Ml
Location and ownership: This structure is located on Calvin between Roberts
and Creston and is owned by Elizabeth Klein.
Staff Correspondence: A dangerous building inspection was conducted on
7/23/01 and an interior inspection was conducted 8/21/01. A notice and order to
repair was issued 8/2/01. The case was heard by the HBA on 9/6/01 and the
case was tabled for 60 days at that time. The case was heard again 12/6/01 and
the owner was again granted 60 days to complete the exterior repairs. On 6/6/02
the HBA granted 120 days to complete the exterior repairs. On 10/7/02 the HBA
declared the property substandard and dangerous. On July 22, 2003 the City
Commission tabled the case for 14 days to allow an inspection to be conducted
for an update on the status of repairs. The report from the inspectors is that no
progress has been made since their last inspection.
Owner Contact: Owner appeared before the City Commission at their July
22, 2003 meeting. At that time the case was tabled until the August 12, 2003
meeting in order to comp lete an interior inspection. This inspection took place on
July 28, 2003 and noted that no permits have been taken for interior repairs. The
roof structure and electrical system have not been completed. Although the
exterior appears to be improved, the structure is not habitable at this time.
Financial Impact: None
Budget action required : General Funds
State Equalized value: $16,200
O :\ l 11spcctio11s\Grabi 11ski_ l .orrni 11c\ Word\CC lvlFF.TINGS\Agcnda 1253 Calvin.doc page I of2
Estimated cost to repair: $10,000
Staff Recommendation: To concur with the Housing Board of Appeals decision to
demolish.
City Commission Recommendation: The commission will consider this item at it's
meeting Tuesday, August 12, 2003.
O:\l nsper.:li{ms\(irahinski_l .orraine\ Word\CC IVIEETIN(iS\Agenda 1253 Calvin.doc page 2 of2
-1;
----1
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l"R arbor Title
955 West Broadway
Muskegon, MI 49441
Title Search
Case No.: I 00120955
July 3 !, 2001
1. Beginning Date: 5/13/97, at 8:00 A.M.
Please See Attached Liber 1983, Page 202, County Records, for Legal Description:
2. We have searched the records in the office of the Register of Deeds for County, Michigan covering the subject
property, and find the following conveyances and undischarged encumbrances, from said beginning date to
6/22/2001, at 8:00 A.M.
Documents
Deeds: Mortgages:
Liber 1982, Page 202 NONE
Taxes:
Possible Sidewalk Assessment in the year 2002.
Possible Water/Sewer Usage Fees.
Proof of payment of invoice fees, due and payable to City
of Muskegon Treasurer in the amount of$60.00.
Payment of the 2000 delinquent taxes, due and
payable to the Muskegon County Treasurer in the
amount of$582.64, if paid by August 31, 2001.
Note:
Permanent Parcel No.: 61-24-685-008-0013-00.
2001 State Equalized Value: $13,400.00.
2001 Taxable Value: $10,087.00.
Non-Homestead Property.
3 We find no United States Internal Revenue Liens recorded in the office of the Register of Deeds of County,
Michigan. against:
Elizabeth Gubocki
4. No search has been made for any instrument, however designated, which has been filed as a financing statement
pursuant to the Uniform Commercial Code.
5. No search has been made of the records of the Circuit, Probate or other Courts, or of any record other than those in
the office of the Register of Deeds.
6. Under this form of search this company is not an insurer of above title, nor does it guarantee the title or any
evidence of title thereto.
7. Note: In consider~tion of the fact that the above info1mation is to be used for reference purposes only and not
relied upon as evidence of title, it is furnished at a reduced rate and this Company's liability is limited to the amount
NOTICE OF HEARING BEFORE THE CITY COMMISSION
DA TE: August 1, 2003
1253 Calvin
(Address of Property)
TO: All owners and interested parties:
Elizabeth Klein. 1940 Woodward, Muskegon, Ml 49442
Owner
None
(Other interested parties)
On October 3. 2002 the Muskegon Housing Board of Appeals made a determination
that the subject property is sub-standard, a public nuisance and a dangerous building
under the City Code and ordered that it be repaired or demolished.
The City Commission will hold a hearing on Tuesday, August 12, 2003 to consider the
above decision of the Housing Board of Appeals. You may appear at this hearing at
5:30 p.m. on Tuesday, August 12, 2003, at the Muskegon City Hall, 933 Terrace
Street, Muskegon, Michigan. with counsel. if you desire. to present any relevant
evidence and arguments concerning the decision to demolish the above structures.
CITY OF MUSKEGON INSPECTIONS DEPT.
FOR THE HOUSING BOARD OF APPEALS
~ -
~-
\
•
\\
By'::
Robert
0 \INSPECTIONSIGRABINSKI_LORRAINEIWORO\CC MEETll"GS\STANDARD FORMSINOTICE OF CITY COMMISSION
HEARING.DOC
Grabinski, Lorraine
From: LaBrenz, Don
Sent: Monday, July 28, 2003 445 PM
To: Grabinski, Bob; Grabinski, Lorraine
Subject: 1253 Calvin
During a progress inspection at the above address, I observed that no progress has been made to the interior of the house
since my visit to inspect the service in 2001.
There currently are no permits on file to do any interior of the building.
When I spoke with the property owner, she stated that she has not had any money for repairs, and that her intention is to
"get in and clean it out so I can sell it"
NOTICE OF CITY COMMISSION DETERMINATION
Date: July 23, 2003
Address of the Property: 1253 Calvin
Description of the Structure: Ramona Park Addition Lots 13 & 14 Blk 8 &
E ½ Garden St. Vac. Adj.
To: Elizabeth Klein, 1940 Woodward, Muskegon, Ml 49442
[Name & Address of Owner]
None
[Names & Addresses of Other Interested Parties]
Please take notice that on July 22, 2003, the City Commission determined to
table your case for 14 days. This case may be brought back to the commission at the
discretion of the Director of Inspections for their concurrence with the order of the
Housing Board of Appeals that the above structure is a dangerous building,
substandard and a public nuisance after the 14 days.
If you disagree with the decision of the City Commission, you have the right to
file a petition for superintending control in the Circuit Court for the County of Muskegon
within 21 days after the date of mailing of this notice.
Robert B. Grabinski, Director of Inspections
0 \INSPECTIONS\GRABINSKI_LORRAINE\WORD\CC MEETINGS\STANDARD FORMS\CC DET. 30DAYSOOC
NOTICE OF HEARING BEFORE THE CITY COMMISSION
DATE: July 11, 2003
1253 Calvin
(Address of Property)
TO: All owners and interested parties:
Elizabeth Gubocki, 1940 Woodward, Muskegon, Ml 49442
Owner
None
(Other interested parties)
On October 3, 2002 the Muskegon Housing Board of Appeals made a determination
that the subject property is sub-standard, a public nuisance and a dangerous building
under the City Code and ordered that it be repaired or demolished.
The City Commission will hold a hearing on Tuesday, July 22, 2003 to consider the
above decision of the Housing Board of Appeals. You may appear at this hearing at
5:30 p.m. on Tuesday, July 22, 2003, at the Muskegon City Hall, 933 Terrace Street,
Muskegon, Michigan, with counsel, if you desire, to present any relevant evidence and
arguments concerning the decision to demolish the above structures.
CITY OF MUSKEGON INSPECTIONS DEPT.
FO~.=jH?USjN~OAt,D or ('P~~~LS
B y _ 1_
-!--
_ ~ vi_JJ._.cJb_,_._~,X_,_·- -
Robert i/3. Grabinski, Director of Inspections
0 \INSPECTIONS\GRABINSKI LORRAINE\WORD\CC MEETINGS\STANDARD FORMS\NOTICE OF CITY COMMISSION
HEARING.DOC -
CITY OF MUSKEGON
CITY OF MUSKEGON HOUSING (BUILDING) BOARD OF APPEALS
Date: October 7, 2002
To: Elizabeth Klein, 1940 Woodward, Muskegon, Ml 49442
Owners Name & Address
None
Names & Addresses of Other Interested Parties
ORDER TO DEMOLISH STRUCTURE
The Housing Board of Appeals, having received evidence at a scheduled and
noticed meeting held on Thursday, October 3, 2002 does hereby order that the
following structure(s) located at 1253 Calvin, Muskegon, Michigan, shall be demolished
for the reason that the said structure or structures are found, based upon the evidence
before the Board of Appeals, to be dangerous, substandard and a public nuisance.
The owners or persons interested shall apply for the required permits to demolish the
structure(s) within 30 days from the final determination to concur and demolish, if it is
made by the City Commission. Demolition shall be accomplished no later than 60 days
after a concurrence by the City Commission.
The director of inspections is ordered to place before the Muskegon City
Commission this order and the record in this case to seek concurrence by the City
Commission with the decision of this board, and further to give notice to the owner and
interested parties of the date and time when this matter shall be considered by the City
Commission. This order is not final until concurred with by the City Commission.
0:IINSPECTIONS\GRABINSKI_LORRAINEIWORDIHBA MEETINGSISTANDARD FORMSIORDER TO DEMOLISH DOC
NOTICE TO OWNER AND INTERESTED PARTIES
Please take notice that this decision of the Housing Board of Appeals will be presented
to the City Commission of the City of Muskegon on the date and at a time to be noticed
to you by the Director of Inspections. You are hereby notified that you will have an
opportunity to appear before the said City Commission at that time and to present any
and all evidence or matters relevant to the issue of demolition or repair of the said
structures. This order of the Housing Board of Appeals is not final, but will become final
if and when the City Commission has considered the record and this order, and has
concurred.
The City Commission may concur with this order, or disapprove or modify the
order.
~pv1ru!J;.EALS
Robrt B. Grabinski, Director of Inspections
0 IINSPECTIONSIGRABINSKI_LORRAINEIWORD\HBA MEETINGS\STANDARD FORMSIORDER TO DEMOLISH.DOC
CITY OF MUSKEGON
CITY OF MUSKEGON HOUSING (BUILDING) BOARD OF APPEALS
NOTICE OF HEARING
Date: September 19, 2002
Address of the Property: 1253 Calvin
TO: Elizabeth Gubocki, 12689 Patricia Ave. Grant, Ml 49327
[Name & Address of Owner]
None
Names & Addresses of Other Interested Parties]
Please take notice that on Thursday, October 3, 2002 , the City of Muskegon Housing
Board of Appeals will hold a hearing at 933 Terrace, Muskegon, Ml at 5:30 o'clock
p.m., and at the said hearing consider whether or not the following structure should be
determined to be dangerous, substandard and a nuisance, and demolished, or
repaired.
The reason for this hearing is to review the status of the repairs.
At the hearing on Thursday, October 3, 2002 , at 5:30 o'clock p.m., at the Muskegon
City Hall, 933 Terrace Street, Muskegon, Michigan, you may appear and present any
relevant evidence to the Housing Board of Appeals and have counsel of your choice
present, if you desire, to show cause why the structure should not be allowed or
ordered demolished.
CITY OF MUSKEGON INSPECTION DEPARTMENT,
ON BEHALF OF THE HOUSI G BOARD OF APPEALS
i2.
B. Grabinski, Director of Inspections
O:\INSPECTIONS\GRABINSKI_LORRAINE\WORD\HBA MEETINGS\STANDARD FORMS\NOTICE OF HBA HEARING DOC
CITY OF MUSKEGON
CITY OF MUSKEGON HOUSING BOARD OF APPEALS
ORDER TO TABLE THIS CASE 120 DAYS
Date of Order: June 11, 2002
Address of the property: 1253 Calvin
To: Elizabeth Gubocki. 12689 Patricia Ave. Grant. Ml 49327
Owners Name & Address
None
Names & Addresses of Other Interested Parties
' '
CASE TABLED FOR 120 DAYS
The Housing Board of Appeals of the City of Muskegon has reviewed your case and
ordered that it be tabled for 120 days to finish the exterior repairs. All exterior repairs
are to be completed in that time and inspections called for.
This case will be reviewed again at the October Housing Board of Appeals meeting,
which you will be notified of.
If you have any questions, please call the Inspection Department at 231-724-6715.
CITY OF MUSKEGON
HOUSING BOARD OF APPEALS
rt B.Grabinski, Director of Inspections
2
CITY OF MUSKEGON
Inspection Services
Memo ff( \ ---
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7 LI l( --
i\] -
Lc;s L(
-1 '.:-; C- - L\ ct -~ L-/
To: Robert Grabinski
From: Lorraine Grabinski
CC: File
Date: 06/05/02
Re: 1253 Calvin
Beth Guqocki contacted the office this morning. She cannot make the HBA meeting
6/6, due to her work schedule. She is asking for a 120 day extension to finish the
roof because of finances and personal reasons. She is getting married August 17
and will then be able to sell her house and have the money to finish the roof. She
talked to Ardyce (CNS) about getting help, but didn't qualify because the roof doesn't
leak.
She wanted to schedule a meeting with Bob Grabinski. I told her that might not be
necessary if she could update me on where she's at with repairs. I will call her on
Friday or Monday to let her know Bob's decision.
it: Page 1
CITY OF MUSKEGON
CITY OF MUSKEGON HOUSING (BUILDING) BOARD OF APPEALS
NOTICE OF HEARING
Date: May 23. 2002
Address of the Property: 1253 Cal\'in
TO: Elizaheth Gubocki. 12689 Patricia Ave. Grant Ml 49377
[Name & Address of Owner]
None
Names & Addresses of Other Interested Parties]
Please take notice that on Thursday, June 6, 2002. the City of Muskegon Housing
Board of Appeals will hold a hearing at 933 Terrace, Muskegon, MI at 5:30 o'clock p.m.,
and at the said hearing consider whether or not the following structure should be determined to
be dangerous, substandard and a nuisance, and demolished, or repaired.
The reason for this hearing is to review your progress on the said structure.
At the hearing on Thursday. June 6. 2002 , at 5:30 o'clock p.m .. at the Muskegon City
Hall, 933 Terrace Street, Muskegon, Michigan, you may appear and present any relevant
evidence to the Housing Board of Appeals and have counsel of your choice present, if you desire.
to show cause why the structure should not be allowed or ordered demolished.
~ F MUSKEGON IN PECTIO DEPARTMENT,
t'SNBEt:t:.:f:._.f/!J
1-1 S ~ BO OF APPEALS R;)
By_ _,__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Robert B. Grabinski, Director of Inspections
F:\INSPECTIONS\GRABINSKI_LORRAINE\WORD\HBA MEETINGS\STANDARD FORMS\NOTICE OF HBA HEARINGDOC
CITY OF MUSKEGON
CITY OF MUSKEGON HOUSING (BUILDING) BOARD OF APPEALS
NOTICE OF HEARING
Date: February 26, 2002
Address of the Property: 1253 Calvin, Muskegon MI
Description of the Structure: Pomona Park Addition Lots 13 & 14 Blk 8 & E ½ Garden St.
vacated
TO: Elizabeth Gubocki, 12689 Patricia Ave, Grant, MI 49327
[Name & Address of Owner]
None
Names & Addresses of Other Interested Parties)
Please take notice that on Thursday, March 7, 2002, the City of Muskegon Housing
Board of Appeals will hold a hearing at 933 Terrace, Muskegon, MI at 5:30 o'clock p.m,
and at the said hearing consider whether or not the following structure should be determined to
be dangerous, substandard and a nuisance, and demolished, or repaired.
The reason for this hearing is to review your progress on the exterior repairs.
At the hearing on Thursday, March 7, 2002 , at 5:30 o'clock p.rn., at the Muskegon
City Hall, 933 Terrace Street, Muskegon, Michigan, you may appear and present any relevant
evidence to the Housing Board of Appea.ls and have counsel of your choice present, if you desire,
to show cause why the structure should not be allowed or ordered demolished.
CITY MUSKEGON INSPECTION DEPARTMENT,
:y B E H ~ ~ ] : J : - ~ , : r ; . OF APPEALS
Rob rt B. Grabinski, Director of Inspections
F:IINSPECTIONSIGRABINSKI_LORRAINE\WORDIHBA MEETINGS\STANDARD FORMSINOTICE OF HBA HEARING.DOC
Affirmath·e Action
231/724-6703
FAX/722-1214
Assessor
231/724-6708
FAX/726-5181
Cemetery
231/724---6783
FAX/726-5617
Civil Sen·ke
231/724-6716
FAX/724-4405 ,West Mlchlgan's Shoreline City
Clerk
231/724-6705
FAX/724-4178
Comm. & Neigh.
Services
231/724-6717 December 10, 2001
FAX1726-2501
Engineering Elizabeth Gubocki
231/724-6707
F AX/727-6904
12689 Patricia Ave.
Grant, Ml 49327
Finance
231/724-6713
FAX/724-6768 Re: 1253 Calvin
Fire Dept.
231/724-6792
FAX/724-6985
Dear Ms. Gubocki:
Income TaI
231/724-6770 On December 6, 2001 the Housing Board of Appeals heard your case on the
FAX/724-6768 above structure.
Info. Systems
231/724-6744
FAX/722-4301
The board's determination on this case is to grant you a sixty day extension to
complete the exterior repairs.
Leisure Service
231/724-6704
FAX/724-1196 If you have any questions, please contact this office at (231) 724-6715.
Manager's Office
231/724-6714 Sincerely,
FAX/722-1214
~~·
Mayor's Office
231/724-6701
FAX/722-1214
Inspection Services
231/724-6715 Director of Inspections
FAX1726-2501
RBG/lg
Plannlng/Zonlng
231/724-6702
FAX/724-6790
Police Dept.
23 l /724-6750
FAX/722-5140
:,:r··-·
Public Works
231/724-4100
FAX/722-4188
Treasurer
231/724-6720
FAX1724-6768
W111er Billing Dept.
231/724-6718
FAX/724-6768
Water Flltrutlon
231/724-4106
FAX1755-5290
City of Muskegon, 933 Terrace Street, P.O. Box 536, ~luskcgon, ~II 49443-0536
CITY OF MUSKEGON
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INSPECTION DEPARTMENT '2.~f0C~-
(231)724-671s , ..-,- 9 f\" 1 ,
INSPg_:tlON SHEET For -(-1 <:::J- 'l-~ 1 ~-------
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.a-1Julldlng O Eiectrloo O Mechanical O Pfumblng D Zoning
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0 F001lng • s..ic. • Un,JA F OF THE HO SING BOARD OF APPEALS
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rt B. Grabinski, Director of Inspections
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