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CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 8, 2003
CITY COMMISSION CHAMBERS@ 5:30 P.M.
AGENDA
ROLL CALL:
HONORS AND AWARDS
CONSENT AGENDA:
a. Approval of Minutes. CITY CLERK
b. Sale of Non-buildable Lot at 2355 Torrent Street. PLANNING &
ECONOMIC DEVELOPMENT
c. Community Development Block Grant/HOME Final Allocation
Decision. COMMUNITY & NEIGHBORHOOD SERVICES
d. Approval of the 2003-2004 Action Plan. COMMUNITY &
NEIGHBORHOOD SERVICES
e. Consideration of Bids -Terrace Street. Iona to Peck. ENGINEERING
f. Request for Permission to Apply for 2003 USFA Grant. FIRE
UNFINISHED BUSINESS:
a. Casino Petitions.
NEW BUSINESS:
a. Authorize Funds for Imagine Muskegon. PLANNING & ECONOMIC
DEVELOPMENT
b. First Quarter 2003 Budget Reforecast. FINANCE
c. Proposed Healthcare Administration Change. FINANCE
d. Termination of Employee Rx Reimbursement Program. FINANCE
e. Power to Lakefront Development. ENGINEERING
PUBLIC PARTICIPATION:
a. Casino Vote Election
Date: AprilS,2003
To: Honorable Mayor and City Commissioners
from: Gail A. Kundinger, City Cleric
RIE: Approval of Minutes
SUMMARY OF REQUEST: To approve the minutes of the Regular
Commission Meeting that was held on Tuesday, March 25, 2003.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
APRIL 8, 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, April 8, 2003.
Mayor Warmington opened the meeting with a prayer from Reverend Julie
Armour from Unity Church of Muskegon, 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,; Commissioners Stephen Gawron, William
Larson, Clara Shepherd and Lawrence Spataro; City Manager Bryon Mazade, City
Attorney John Schrier and City Clerk Gail Kundinger. Absent were Vice Mayor Karen
Buie and Commissioner Robert Schweifler
HONORS AND AWARDS
Mayor Warmington presented a Certificate of Recognition to Kris Collie of
Volunteer Muskegon for National Youth Services Day.
2003-30CONSENT AGENDA:
a, Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, March 25, 2003.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
b, Sale of Non-buildable Lot at 2355 Torrent Street. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant non-buildable lot (Parcel
#24-205-620-0004-70) at 2355 Torrent Street to Emily Jensen, 2340 Moon St.,
Muskegon, Ml 49441. Approval of this sale will allow the adjacent property owner
to expand her current yard. As is required by City policy, the subject parcel is
being offered for $100 to Ms. Jensen.
FINANCIAL IMPACT: The sale of this lot will allow the property to be placed back
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and to authorize both the Mayor
and the Clerk to sign the resolution.
d. Approval of the 2003-2004 Action Plan. COMMUNITY ft
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the 2003-2004 Action Plan for the City of Muskegon
CDBG/HOME activity. If the Action Plan is approved, the CNS will continue the
comment period of the Action Plan as amended if needed, until April 22, 2003.
On April 23, 2003, the CNS office will deliver the Action Plan to the U.S. Housing and
Urban Development as required in order to request the Release of Funds for the 2003-
2004 fiscal year.
FINANCIAL IMPACT: Action Plan establishes the 2003-2004 budget.
BUDGET ACTION REQUIRED: None at this time; budget established by Action Plan.
STAFF RECOMMENDATION: To approve the Action Plan.
f. Request for Permission to Apply for 2003 USFA Grant. FIRE
SUMMARY OF REQUEST: The Fire Department is requesting City Commission permission
to apply for 2003 United States Fire Administration "Assistance to Firefighters Grant
Program" to provide firefighter equipment to enhance operational safety.
FINANCIAL IMPACT: $11,300 match through Department Capital Funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of grant application to USFA for
fire equipment acquisition.
Motion by Commissioner Gawron, second by Commissioner Spataro to approve the
Consent Agenda, minus items c and e.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington
Nays: None
Absent: Buie, Schweifler
MOTION PASSED
2003-31 ITEMS REMOVED FROM THE AGENDA
c. Community Development Block Grant/HOME Final Allocation
Decision. COMMUNITY ft NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: For the City Commission to make their final allocation decision
concerning the 2003-2004 CDBG/HOME fiscal year.
The Commission has received the recommendation from the Citizen District Council and
the City Administration. The Commission made their preliminary recommendations
during the March 18, 2003 City Commission meeting.
After receiving the Commissions final allocation decision, the CNS office will amend the
City's 2003-2004 Action Plan if needed and continue the comment period until April 22,
2003. At that time, the City will request the U.S. Housing and Urban Development
Department for the release of the funds for the 2003-2004 fiscal year to begin June 1,
2003.
FINANCIAL IMPACT: The decision will determine the CDBG/HOME budget for 2003-2004.
BUDGET ACTION REQUIRED: The decision will establish the budget.
STAFF RECOMMENDATION: The Commission has already received the staff
recommendation.
Motion by Commissioner Spataro, second by Commissioner Gawron to concur with
the previous recommendations and approve the final allocation decision of the
2003-2004 CDBG/HOME fiscal year.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Gawron
Nays: None
Absent: Buie, Schweifler
MOTION PASSED
e. Consideration of Bids -Terrace Street, Iona to Peck. ENGINEERING
SUMMARY OF REQUEST: The Terrace St., Iona to Peck contract be awarded to Grant
Tower Excavating of Grant, Ml. Grant Tower was the lowest, responsible bidder with a
bid price of $484, 784.45.
FINANCIAL IMPACT: The construction cost of $484,784.45 plus related engineering
expenses.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Award the contract to Grant Tower Excavating.
Motion by Commissioner Larson, second by Commissioner Gawron to award the
contract to Grant Tower Excavating.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Gawron, Larson
Nays: None
MOTION PASSED
2003-32 UNFINISHED BUSINESS:
a. Casino Petitions.
Motion by Commissioner Larson, second by Commissioner Spataro to concur with the
City Attorney's opinion and do nothing at this time.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Gawron, Larson
Nays: None
Absent: Buie, Schweifler
2003-33 NEW BUSINESS:
a. Authorize Funds for Imagine Muskegon. PLANNING ft ECONOMIC
DEVELOPMENT
SUMMARY OF REQUEST: Request authorization of a $6,000 budget allocation to be
designated to the Imagine Muskegon project and further act as the fiduciary for the
project.
FINANCIAL IMPACT: The total project cost estimated at $20,000. Fund raising activities
are in full swing with several pending commitments.
BUDGET ACTION REQUIRED: This allocation was authorized in the 2003 budget as an
item in the Planning 8: Economic Development Budget.
STAFF RECOMMENDATION: Authorize the allocation and act as the fiduciary for the ad-
hoc group.
Motion by Commissioner Spataro, second by Commissioner Larson to approve
authorization funds of $6,000 to be designated to the Imagine Muskegon Project and
further act as the fiduciary for the project.
ROLL VOTE: Ayes: Spataro, Warmington, Gawron, Larson, Shepherd
Nays: None
Absent: Buie, Schweifler
MOTION PASSED
b. First Quarter 2003 Budget Reforecast. FINANCE
SUMMARY OF REQUEST: At this time staff is transmitting the First Quarter 2003 Budget
Reforecast which outlines proposed changes to the original budget that have come
about as result of changes in policy priorities, labor contracts, updated economic
information, or other factors. For the next meeting, an action item will be placed on
the agenda for adoption of the proposed first quarter budget reforecast together with
any additional changes deemed necessary by Commissioners.
FINANCIAL IMPACT: Staff is awaiting updated figures from the state. A budget
reforecast report will be presented at the April 7th Committee of the Whole meeting.
BUDGET ACTION REQUIRED: Self-explanatory
STAFF RECOMMENDATION: The City Commission should review the Reforecast to ensure
it reflects their policy initiatives. At the next City Commission meeting, staff will
request formal approval of the Reforecast and related budget amendments.
Motion by Commissioner Larson, second by Commissioner Spataro approval of the
First Quarter 2003 Budget Reforecast and related Budget amendments.
ROLL VOTE: Ayes: Warmington, Gawron, Larson, Shepherd, Spataro
Nays: None
Absent: Buie, Schweifler
MOTION PASSED
c. Proposed Healthcare Administration Change. FINANCE
SUMMARY OF REQUEST: Staff recommends that a change be made in the administration
of the City's self-insured healthcare and dental programs. Specifically, it is
recommended that the current TPA contract with Benesight be terminated effective
May 31, 2003 and the Priority Health (who currently handles the City's HMO program) be
appointed to administer the self-insured program starting June 1, 2003.
FINANCIAL IMPACT: The change in service providers will result in direct administrative
savings to the city as well as better service and better coordination of the City's
healthcare programs.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Termination of the current TPA service contract with
Benesight effective May 31, 2003. Appointment of Priority Health as TPA for the City's
self-insured healthcare and dental programs effective June 1, 2003.
Motion by Commissioner Spataro, second by Commissioner Larson to approve Health
Care Administration changes and terminate the current TPA service contract with
Benesight effective May 31, 2003 and appoint Priority Health as TPA for the City's
self-insured healthcare and dental programs effective June 1, 2003.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington
Nays: None
Absent: Buie, Schweifler
MOTION PASSED
d. Termination of Employee Rx Reimbursement Program. FINANCE
SUMMARY OF REQUEST: Staff recommends that the prescription drug reimbursement
program put into place in 1999 be terminated.
FINANCIAL IMPACT: Direct savings of about $7,000 per year. Additionally, significant
staff time will be saved.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Termination of the current prescription drug reimbursement
program effective May 31, 2003.
Motion by Commissioner Gawron, second by Commissioner Shepherd to approve the
termination of the current Employee Prescription Drug Reimbursement Program
effective May 31, 2003.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Gawron
Nays: None
Absent: Buie, Schweifler
MOTION PASSED
e. Power to Lakefront Development. ENGINEERING
SUMMARY OF REQUEST: Authorize Consumer Energy to install the necessary power poles
and lines to proved power into the entire development including the GVSU site as per
the proposal. Please keep in mind that the proposal calls for wooden poles to be
installed along the lake side of the proposed bike trail from Ryerson Creek all the way
to the fence between the lakefront property and the Payne's property, for an estimated
cost of $263,100.
FINANCIAL IMPACT: The estimated construction cost of $263,100.
BUDGET ACTION REQUIRED: None at this time. The cost will be from the CMI grant and
overage assessed to developer.
STAFF RECOMMENDATION: Authorize staff to issue a notice to proceed with Consumer
Energy to perform the necessary work.
Motion by Commissioner Spataro, second by Commissioner Shepherd to authorize
staff to issue a notice to proceed for Consumer Energy to install the necessar y
power poles and lines to provide power into the entire development including the
GVSU site as per proposal, contingent upon reaching agreement with developer in
regards to underground power on the west side of property.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington
Nays: None
Absent: Buie, Schweifler
MOTION PASSED
2003-34 PUBLIC PARTICIPATION:
a. Casino Vote Election
Comments on Advisory Referendum were heard from Archimedes representative, Dave
Wentland, of 399 Nelson, Muskegon, and Lance Hendricks, 1715 Kalamazoo Ave.,
Kalamazoo, Ml.
Motion by Commissioner Spataro, second by Commissioner Larson to direct matter
to staff and for details on wording of ballpt and procedure for an election on
Advisory Referendum. '
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Gawron, Larson
Nays: None
Absent: Buie, Schweifler
MOTION PASSED
The Regular Commission Meeting for the City of Muskegon was adjourned at 7:57pm.
Respectfully submitted,
)
~~f'
Gail Kundinger, MMC
Commission Meeting Date: April 8, 2003
Date: March 25, 2003
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development c.tB v
RE: Sale of Non-buildable Lot at 2355 Torrent Street
SUMMARY OF REQUEST:
To approve the sale of a vacant non-buildable lot (Parcel #24-205-620-0004-70) at
2355 Torrent Street to Emily Jensen, 2340 Moon Street, Muskegon, Ml 49441
Approval of this sale will allow the adjacent property owner to expand her current yard
(see attached map). As is required by City policy, the subject parcel is being offered for
$100 to Ms. Jensen.
FINANCIAL IMPACT:
The sale of this lot will allow the property to be placed back on the City's tax rolls thus
relieving the City of continued maintenance costs.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the attached resolution and to authorize both the Mayor and the Clerk to
sign the resolution .
COMMITTEE RECOMMENDATION:
3/25/2003
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CITY OF MUSKEGON
RESOLUTION #2003- 3o h )
RESOLUTION APPROVING THE SALE OF A CITY-OWNED NON-BUILDABLE LOT
WHEREAS, the City of Muskegon has received $100 from Emily Jensen, 2340 Moon Street,
Muskegon, MI 49441 for the purchase of a vacant, City-owned lot located adjacent to her
property at 2355 Torrent Street (parcel #24-205-620-0004-70);
WHEREAS, this lot is not considered buildable under the City's Zoning Ordinance,
WHEREAS, the sale would enable the City to place this property back on the tax rolls, and
would relieve the City of further maintenance;
WHEREAS, the sale of this property would be in accordance with property disposition goals and
special recommendation of the Land Reutilization Committee (LRC);
NOW, THEREFORE BE IT RESOLVED, that THE CITY OF MUSKEGON REVISED PLAT
OF 1903 PART OF LOT 4 BLLK 620 COM ONE LINE OF SD LOT 278.65 FT SLY OF NE
COR TH SOOD 15M W 161.85 FT TH N 22D 15M W 149.05 FT TH N 67D 45M E 62.9 FT TO
BEG be sold to Emily Jensen for $ 100.
Resolution adopted this 8th day of April, 2003.
Ayes: 5
Nays: O
···· •·· --~· :·.~
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CERTIFICATION
This resolution was adopted at a regular meeting of the City Commission, held on April 8, 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
By ~a-~~
~ CGail A. Kundinger,
Clerk
2002-30 b)
QUIT-CLAIM DEED
KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal corporation, whose
address is 933 Terrace Street, Muskegon, MI 49440,
QUIT CLAIMS TO: EMILY JENSEN, of2340 Moon Street, Muskegon, Michigan 49441,
the following described premises situated in the City of Muskegon, County of Muskegon, State of Michigan, to wit:
CITY OF MUSKEGON REVISED PLAT OF 1903 PART LOT 4 BLK 620
COM ONE LINE OF SD LOT 278.65 FT SLY OF NE COR TH SOOD
15M W 161.85 FTTH N 22D 15M W 149.05 FTTH N 67D 45M E
62.9 FT TO BEG
(also known as 2355 Torrent Street)
for the sum of One Hundred and no/l00 Dollars ($l00.00)
This deed is exempt from real estate transfer tax pursuant to the provisions of MCL 207.505(h)(i) and MCL 207.526
(h)(i).
Dated this Jl..t.h day of _ _ _ _~A4p~rL1,_'_,_J_ _ ,, 2003
STATE OF MICHIGAN
COUNTY OF MUSKEGON
The foregoing instmment was acknowledged before me this at.h day of AO r; 1 , 2003, by
Stephen J. Warmington and Gail A. Kundinger, MMC, Mayor and City Clerk, respectively, o'fthe CITY OF
MUSKEGON, a municipal corporation, on behalf of the City.
PREPARED BY: .;~ )lb 00/t,., s /{:
John C. Schrier Notary Public, Muskegon County\Mich$an
Parmenter O'Toole My commission expires: S - ) .Y D':,
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
C:\DOCUME-1\anguilm\LOCALS-1\Tempv\T7942.DOC
Commission Meeting Date: April 8, 2003
Date: April 1, 2003
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Approval of the 2003-2004 Action Plan
SUMMARY OF REQUEST: To approve the 2003-2004 Action Plan for
the City of Muskegon Community Development Block GranUHOME
activity. If the Action Plan is approved, the CNS will continue the
comment period of the Action Plan as amended if needed until April 22,
2003.
On April 23, 2003, the CNS office will deliver the Action Plan to the U. S.
Housing and Urban Development as required in order to request the
Release of Funds for the 2003-2004 fiscal year.
FINANCIAL IMPACT: Action Plan establishes the 2003-2004 budget.
BUDGET ACTION REQUIRED: None at this time budget established by
Action Plan.
STAFF RECOMMENDATION: To approve the Action Plan.
COMMITTEE RECOMMENDATION: None.
Action Plan
COMMUNITY DEVELOPMENT BLOCK GRANT
June 1, 2003 thru May 31, 2004
MISSION STATEMENT & NARRATIVE SUMMARIES
To provide its residents with the ability to live in safe, decent, sanitary and attractive housing and to
assure the preservation and enhancement of the City's neighborhoods, public facilities and
infrastructure are examples of annual activities undertaken by the City of Muskegon to promote the
overall well-being of this community. This section of the Consolidated Housing & Community
Development Plan will describe eligible programs, projects and activities to be undertaken with funds
expected to be made available during the above program year and their relationship to housing and
non-housing community development needs outlined in previous sections.
PURPOSE & INTENT
In accordance with the National Affordable Housing Act of 1990, the City of Muskegon must submit
an Annual Action Plan to the U. S. Department of Housing & Urban Development pursuant to its
approved Consolidated Plan 2000-2004, which identifies proposed actions toward meeting housing
and non-housing priorities. Affected programs include, but are not limited to the Community
Development Block Grant (CDBG), the HOME Investment Partnership (HOME), the Emergency
Shelter Grant (ESG), Homeless Assistance, Youth Build, and the Housing Opportunities for Persons
Living with AIDS (HOPWA) Programs.
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
ANNUAL STATEMENT OF PRIORITIES & PROPOSED PROJECTS
The City's Community Development Block Grant (CDBG) program is annually funded to address the
City's short and long-term goals, needs and priorities. These goals, needs and priorities are translated
into the City's Annual Action Plan and Statement of Priorities and Proposed Projects for each
program year period. If a determination is made not to implement an activity, to carry out an activity
not previously described, or to substantially change the purpose, scope, location, or beneficiaries of
an activity, an Amendment to the active program year Action Plan will be enacted. The City's
Statement of Priorities and Proposed Projects for this period follows the Summary of Resources
below:
Projected Resources & Activity Summary:
$1,217,000 FY 2003 HUD/CDBG Entitlement
150,000 Program Income
$1,367,000 Total CDBG funding
Other Expected Federal Funding
Law Enforcement Block Grant 89,419
Distress Neighborhood Grant 99,099
Multi-Jurisdictional Drug &Gang 29,600
After School Learning Centers 1,000,000
Total 1,218,118
Summary of Priorities and Proposed Projects
The City of Muskegon proposes to undertake activities during the 2003 - 2004
program year described as follows: The Funding is based on entitlement amount of
$1,376,000
Housing Priorities & Proposed Projects
Proposed projects will aid in the elimination of blight throughout the City, which is
detrimental to life, health, and safety.
$185,000 Housing Rehab • Emergency Repair Program. Continued assistance
to very low-income homeowners for the repair of single-purpose
housing deficiencies that pose a serious threat to life, health, or safety.
Locations: City/Community Wide
Targeted Outcome: 40 Housing Units
$155,000 Housing Rehab - Siding Program. Continued assistance to provide free paint to
low-income owner-occupants of single-family housing units, or vinyl siding to very
low-income, owner-occupants.
Locations: City/Community Wide
Targeted Outcome: 90 Housing Units
$115,000 Housing Rehab• Service Delivery Costs. Funding for the administration of housing
rehab programs and incidental costs associated with the housing rehab activities such
as credit reports and recording fees.
Location: City/Community Wide
Targeted Outcome: 150 Household
$90,000 Residential Clearance. Continued funding for the board-up and demolition of
vacant, substandard structures that are not suitable for rehabilitation.
Locations: Census Tract 2 - Jackson Hill; 3 - Angell; 5 - McLaughlin; and 6.02
Nelson Neighborhood
Targeted Outcome: 15 Housing Units
$45,000 Code Enforcement. Funding for the enforcement of City ordinances with respect to
property maintenance and neighborhood blighting influences.
Locations: Census tract 3 - Angell Neighborhood, Census tract 5 - McLaughlin,
Census tract 2 -Jackson Hill, Census tract 1 - Marquette, Census tract 6.02 Nelson
Neighborhood
Targeted Outcome: 1000 Households
Non-Housing Priorities & Proposed Projects
Proposed projects will encourage commercial and retail development by taking maximum advantage
of a variety of resources, to promote business expansion and investment in order to create a balanced
recreational, commercial, residential, educational and industrial economic climate as follows:
$245,000 Shoreline Drive Bond Repayment. Funding for payment of bond authority funds
toward completion of the Shoreline Drive project, to be used for real property
acquisition of affected properties.
Location: Census Tract 7 - Central Business
Targeted Outcome: Area Redevelopment
$30,000 Commercial Facade Improvement: Funding to assist businesses in the Western
Street and Third Street area with exterior business improvements
Location: Downtown Census Tract 7 and 6
Targeted outcome: 6 businesses
Public Improvements Proposed Projects
Proposed projects will provide the impetus to insure the continued maintenance and upgrading of the
City's infrastructure, transportation and neighborhood resources as follows:
$48,500 Sidewalk Assessment Program. Continued funding of sidewalk replacement costs
for low-income homeowners, as identified by the sidewalk replacement program.
Location: Census Tracts - Steele Neighborhood
Targeted Outcome: 75 Households
$40,000 Public Rehabilitation/Clean-ups. Funding to be used for maintenance of City-
owned residential lots and other future public rehabilitation projects.
Location: Census Tracts 1, 2 ,3 , 5, 6.01
Targeted Outcome: 200 Lots
$70,000 Street Assessment Program. Continued funding of street replacement costs for
special assessment levied to low income homeowners who resided in areas where
street replacement is proposed.
Public Services & Proposed Projects
Proposed projects will support community-based organizations by promoting neighborhood self-
sufficiency and meet the under-served needs of special needs populations such as youth, the elderly,
persons with disabilities and the homeless and low-income residents.
$70,000 Recreation Programs. Continued funding of core-city youth recreation programs.
Activities include summer/winter swimming, gym activities, basketball, family
recreation, indoor soccer, and summer playground programs.
Location: Census Tract 2 - Jackson Hill; 3 - Angell; 4 - East Muskegon; 5 -
McLaughlin; 6.01- 6.02 Nelson
Targeted Outcome: 500 Youth
$50,000 Sr. Citizen Transit. Continued funding to provide low-cost transportation services
for elderly residents to medical facilities, shopping centers, educational/recreational
activities and other related destinations.
Location: City/Community Wide
Targeted Ontcome: 1300 Elderly
$50,887 Special Projects/Community-Based Organizations. Continuation of grant program
for local non-profit organizations to provide various services to low-income
community residents.
Location: City/Community Wide
Targeted Outcome: 8 Community-Based Organizations
Approximately: 10,000 individuals
Management
$172,500 Management & Coordination. General management, oversight and coordination
of CDBG activities. Funding includes cost of staff salaries and fringe benefits, office
supplies, equipment and contingency; Contract Compliance/BO and Indirect Costs.
CDBG PROJECTS/ACTIVITIES - 2003
FY29- 2003 - 2004 ACTIVITIES - By RANKING
REHABILITATION - HOUSING 455,000 33%
Emergency Repair
Vinyl Siding
Administration
BOND REPAYMENT 245,000 18%
Shoreline Drive
PUB. FACILITIES-ASSESSMENTS 160,000 12%
Sidewalks/Street
Lot maintenance
GENERAL ADMINISTRATION 172,500 13%
General Admin.
Affirm. Action
PUBLIC SERVICES 198,453 12%
Recreation Programs
Sr. Transit
CBO Grants Program
CODE ENFORCEMENT- HOUSING 135,000 10%
Code Inspections
Residential Clearance
COMMERCIAL IMPROVEMENT 30,000 1.8%
Favade Improvement
2003 HOME INVESTMENT PARTNERSHIPS PROGRAM
ANNUAL STATEMENT OF PRIORITIES & PROPOSED PROJECTS
The HOME Investment Partnerships Program was created by the National Affordable Housing Act
of 1990, and the City of Muskegon is a designated "participating jurisdiction," which allows direct
allocations of funds from the Dept. ofHUD. Portions of these funds may be awarded to non-profit
organizations to assist with the provision of affordable housing and support services; other eligible
activities include acquisition, rehabilitation, investor/rental rehabilitation, downpayment assistance
and assistance to first-time homebuyers. The City's Statement of Priorities and Proposed Projects for
this period follows the Summary of Resources and Proposed Amendments below:
Project Resources: $340,111
Reprogrammed Funds $ 20,000
Housing Priorities and Proposed Projects
Proposed projects will aid in the prevention of further loss of viable housing units, increase affordable
homeownership opportunities, encourage new development of affordable housing, and provide
continued support for shelter and service programs for the homeless and persons at-risk of
homelessness as follows:
$165,000 Community Housing Development Organizations. Continued assistance to support
non-profit organizations providing housing and housing related activities, and
activities for the needs of the homeless and those at risk of homelessness, and
technical assistance to emerging non-profit housing organizations. 35
Households/Citywide
$57,000 Program Administration. General management, oversight and coordination of
HOME program activities. Funding includes staff salaries, fringe benefits, office
supplies and equipment.
$60,000 Tax-Reverted Infill Program. Assistance to construct single-family dwelling on tax-
reverted properties not neighborhood specified. I family/targeted neighborhood.
$50,000 Tax-Reverted Rehabilitation Program. Assistance to rehabilitate tax-reverted
single-family structures and sell to low/moderate-income residents after rehab. 1
family/targeted neighborhood.
$10,000 Demolition Infill. Continue program where the City uses funding to demolish tax-
reverted and dangerous buildings owned by the City. The sites will later be used for
new construction.
$340,111 - HOME PROJECTS/ACTMTIES - 2003
2003 HOME INVESTMENT PARTNERSHIPS PROGRAM
CITY OF MUSKEGON
COMMUNITY & NEIGHBORHOOD SERVICES
PROGRAM DESCRIPTION
2003 ALLOCATION OF FUNDS $340,111
Reprogrammed funding $ 20,000
Total HOME
$360,111
HOME Community Housing Development Organizations (CHDO's)
$165,000
As a participating jurisdiction, the City of Muskegon is required to provide opportunities for
Community Housing Development Organizations to utilize HOME funds to produce affordable
housing within the City of Muskegon. Funding will include the provision of technical assistance to
assist in building the capacity of CHOO's to produce affordable housing and for administrative
support of the organizations within the regulatory guidelines. Eligible activities include the acquisition
of vacant land or existing structures, the construction or rehabilitation of these properties for
occupancy by low to moderate-income individuals.
Tax-Reverted Infill: $60,000
The City of Muskegon will use the allocated HOME funding to construct a single-family home on
a designated tax-reverted lot not neighborhood specifically to be located in one of the city's
low/moderate-income eligible neighborhoods. The home is to be sold to a low/moderate family
whose income is at or near 80% of the city's median income. The potential owners will be recruited
with the assistance of one of the city's CHOO' s. Downpayment assistance may be available through
the CHOO. The length of the affordability period will be determined by the amount ofHOME funds
used as a subsidy in the project. (see HOME Neighborhood Infill for additional details)
Eligible Properties
This program is proposed to provide assistance to rental property owners in the rehabilitation of
single or multi-family rental properties to bring them up to code. This program will be available for
properties with four or less rental units in the building. Priority will be given to single family rental
Program Requirements
Properties must be purchased/ occupied by low to very-low income tenants, those with incomes at
or below 80% of area median income..
Program Marketing
The City of Muskegon will actively market this program with the local rental property owners
association, area lenders, other non-profit organizations, neighborhood associations, local CHDO's
and other housing and community development related entities.
Recapture provisions
The City elects to adopt the recapture of the homebuyer subsidy. The homebuyer subsidy will be
forgiven by the City at a rate of 1/180 per month throughout the term of the affordability period.
Upon sale of the property by the homeowner within the affordability period, the homeowner will be
required to repay a prorated portion of the HOME funds used to subsidize the purchase of the home.
The property owner's return on investment at the point of sale will include:
The amount of the homebuyer's downpayment made from their own resources
The amount of mortgage principle repaid at the time of resale
The appreciated value of the property (Appraised value at resale less the appraised value of
the property at the time of purchase by the homeowner).
The homeowner will receive the full amount of the fair return only if sufficient sale proceeds remain
after all outstanding debt (including repayable HOME subsidy amounts) and closing costs are paid.
Any proceeds remaining after payment of the outstanding debt, closing costs, fair return, and any
HOME subsidy repayment will be shared 50/50 between the homeowner and the City. Any funds
repaid to the City will be returned to the HOME trust fund. Repayment of the HOME subsidy amount
will not be required is the resale does not provide sufficient net proceeds to satisfy other outstanding
debt, pay closing costs, and offer a fair return on investment to the property owner. Partial repayment
may be required based on the amount of sales proceeds received by the homeowner.
Tax-reverted Rehabilitation: $50,000
The City of Muskegon will use this fonding to rehabilitate a single family structures obtained through
the tax-reversion process, the dangerous building list or through the U. S. Housing and Urban
Developments "Good Neighborhood Program".
The funding will be used to rehabilitate the dwelling to code. After the rehabilitation is completed
the structures will be sold to an income eligible low/moderate-income family through a partnership
with one of the communities CHDO's.
The future occupants will have incomes preferably below 65% of area median income. Any profits
obtained from this program will be reallocated to the local HOME funds. The recapture provisions
are the same as under the Infill program
Tax Reverted Demolish: $10,000
The City of Muskegon will used this funding to assist with neighborhood revitalization efforts
By demolishing tax reverted and dangerous residential homes owned by the City. The site will be used
at a later date for Infill construction. After construction is completed the homes will be sold to
qualified low-income residents.(recapturing provision above)
HOME Administration: $57,000
The City of Muskegon will use the funding to administer all HOME programming.
Rental Rehabilitation Program - NOT FUNDED TIDS FISCAL YEAR
This program will provide funding for the rehabilitation of existing rental units located in the City of
Muskegon occupied by families whose annual incomes do not exceed 60 percent of the median family
income for the area, adjusted for family size. The City will provide a maximum of $30,000 by
matching the owner's contribution to the rehabilitation. The property owner must contribute the
remaining development costs. Properties rehabilitated under this program must meet applicable local
building codes at the completion of the project.
Property owners will be eligible for assistance under the City's Rental Rehabilitation programs only
if there are no outstanding legal actions pending against them for chronic outstanding violations.
Landlords who have already received assistance under the HUD Rental Rehab program, the MSHDA
HOME Rental Rehab program, or the City's HOME Rental Rehab program will not be eligible for
additional assistance to the same properties. Qualifying property owners must be current on all taxes
and debts owed to the City of Muskegon prior to submitting their application for assistance, and
throughout the HOME affordability period.
Tenant Occupancy
For property receiving HOME Rental Rehabilitation assistance, the units must be occupied by families
with incomes at or below 80% of area median income, adjusted for family size. Income
determinations will be made at the time of application. Tenant occupancy and income will be re-
certified annually for the length of the applicable affordability period.
Monitoring
In compliance with CFR24 91.230 the City of Muskegon requires all funded subreceipients and
Community Housing Development Organizations (CHDO's) to sign an agreement contract listing
their intended scope of services, a delineated budget and to include all required supporting
documentation. (i.e. 501 C3 verification, list of staff demographics etc) As well as including in the
agreement all pertinent City of Muskegon and U. S. Department of Housing and Urban development
requirements.
In addition all Subreceipeints and CHDOS are required to submit quarterly progress reports detailing
the organization/agency accomplishments during the past quarter, and or the number of minorities
and or low and moderate income residents served.
The City of Muskegon Community and Neighborhood Services also physically monitors all
Subreciepients and CHDO's at their sites once a year which includes reviewing policies, procedures
as well as activities and accomplishments.
RELEVANT NARRATIVE STATEMENTS
Issue: Continuum of Care Strategy for the Homeless
Muskegon County's Continuum ofCare1 can be viewed as four interconnected phases. Phase
One is an outreach and entry phase. The homeless, near homeless, and the working poor at risk of
homelessness are identified by organizations that provide life-sustaining assistance ... shelter, food and
financial support. These entities include the Salvation Army, City Rescue Mission, Red Cross,
Community Action Against Poverty, Every Woman's Place, Catholic Human Development Outreach
and the COGIC Center of Trinity Village. Their obligation to this strategic plan is to identify and
perform an initial assessment. This process allows referral to safe shelter for the homeless and to case
1 "" •··-'·----- ,.,_ ........ TT- .••• 1 ••• n •• 1:,: •.• I.\O~'T'n A r>'T'H 11 •---1- 1nr\n
management services for the near homeless to prevent the loss of home.
Phase Two is a barrier identification and case management phase. During this phase, client
issues are explored more intensely, and individual, client-driven case management plans are designed.
Additional services from the community are then "wrapped around" the client that addresses the
barriers to safe housing and economic stability. These may include employment assessment and
training, substance abuse treatment, support services education, health and dental care provisions,
legal support, individual and family counseling and movement into a transitional living situation. The
near homeless continue to be monitored and supported to prevent their loss of home. Organizations
involved at this time include Family Centers, Legal Aid, Treatment Centers, County Employment and
Training sites, Health Care providers, and mental health specialists. It should be noted that even with
expensive services in this Phase, a lack of transitional housing can result in a "revolving door"
situation, with clients returning into Phase One.
Phase Three continues the case management plan, with additional emphasis on self-
supporting skills such as gaining and retaining a life sustaining wage, budgeting, parenting, permanent
housing education and nutrition. Clients in this phase are moved toward permanent housing, if
previously homeless, or toward greater stability if identified originally as near homeless. Housing
education stresses home ownership as a preferred strategy over renting. In this phase, Housing
Commissions, financial institutions, neighborhood associates and the faith-based community are
included.
Clients in Phase Four are supported in their efforts to gain and maintain a permanent
residence, both physically and financially. Section 8 housing vouchers, city renovation project grants,
and low or no-cost reclamation loans are sought for this purpose. Support services are offered as
required to continue the development and stability of the family toward self-sufficiency and economic
sustainability. Case management services taper off as clients become more self-reliant.
Priorities in Muskegon County include support for emergency shelters, additional transition
housing units, and a computerized case management system for data collection and analysis.
Issue: Fair Housing Needs Impediments
The City of Muskegon continuously works to assure that any impediments to fair housing
opportunities are removed. It is the City of Muskegon administration position that the 2000 Census
will illustrate that the City of Muskegon has seen a shift in housing patterns in the last IO to 15 years
where minorities are residing in areas of the city formerly only occupied by white residents. Some of
the credit for this shift can be attributed to the work of the nonprofit community promotion of
homeownership and also the local realtor community, which has been promoting homeownership
throughout the City. The City of Muskegon has also increased the availability of quality housing
within the city in a number of ways. The City's Infill programs have given the opportunity to low and
moderate-income residents to purchase home they would not be able to afford with out the subsidy.
In the last decade the City of Muskegon has also experienced a significant increase in the availability
of quality rental housing. Several complexes have been built by the private market offering quality-
housing opportunities for low and moderate-income residents which includes rental assistance. Even
with the increase in available rental housing there still appears to be a need for addition rental
assistance. During the period of March 18, 2002 thru March 22 2002, the Muskegon Housing
Commission advertised open enrollment for its Section 8 vouchers/certificates a total of
approximately 1257 applications were received by the Housing Commission from the public hoping
to obtain rental assistance. January 9, 2003, Muskegon Heights had an open enrollment for their
section 8 program. A total of 1,000 applications were accepted at that time.
Issue: Lead Paint Hazard Reduction
The City will continue to coordinate actions toward reduction oflead hazards in housing units with
the Muskegon County Health Department, particularly in homes occupied by children under the age
of seven(7), and with elevated blood lead levels. Although, the number of homes rehabilitated under
the City's housing programs remain a small portion of units suspected to have lead hazards, the
County Health Department continues to focus on the existence of hazards in the community and
employees various strategies through area social service agencies for abatement, education, screening
and coordination.
The City's actions toward eradication of this particular hazard to the community involves the
following:
* Continued support and coordination with the Muskegon County Health Department;
* Priority consideration under housing programs to households with children with elevated
blood lead levels;
* Allocation of CDBG/HOME funding for lead hazard abatement and remediation in
rehabilitated homes; and
* Provision of the most current information, data analysis, and prevention methods to the
general public through brochures, pamphlets and other education materials on the risks of
lead poisoning.
Under the City's HOME Program, certain activities involve the acquisition and/or sale of single-family
properties and investor-rehabilitation assistance for rental properties. Under this program, the
following actions apply for purchase, rental, and renovation of pre-1978 housing units:
* Investor/Landlords must disclose known information on lead-based paint hazards before
leases take effect;
* Sellers must disclose known information on lead-based paint hazards before selling a
housing unit; buyers have a minimum often (10) days to check for hazards; and
* Rehabilitation activities will include specific inspection specifications and procedures for
use by contractors performing construction services.
The City of Muskegon has worked diligently to train both its staff and its contractors in lead paint
remediation. The CNS office has four members of its staff certified in safe work practices. Its
rehabilitation inspector is certified in Lead supervision and as a Lead wiper. The City has also
financed the training of a total of 52 area contractors in safe work practices and a total of 7 as Lead
Based Paint supervisors.
The City of Muskegon Inspection department has aggressively implemented a policy that targets
substandard housing in the City, requiring that the housing is brought up to code in a quality manner
by the owner or the housing is demolished. Which eliminates the substandard housing from the City's
housing stock and also eliminates the possibility of the substandard housing being rented and or sold
to someone not in a quality condition.
Anyone wishing to make a complaint concerning housing related issues is directed to the City of
Muskegon Affirmative Action office. Last fiscal year a fair housing analysis was produced regarding
Muskegon County by the Grand Rapids Fair Housing Center. The report was financed by the cities
of Muskegon, Muskegon Heights, Norton Shores and Muskegon County.
The results of that study is currently being studied and the information derived from the report will
be used in future planning efforts.
Currently, the local Muskegon County National Association for the Advancement of Colored People
(NAACP) along with the cities of Muskegon, Muskegon Heights, Norton Shores and the County of
Muskegon are researching the possibility of reestablishing a Fair housing Center in Muskegon
County.
Issue: Welfare Reform Impact
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 represents significant
changes in perceptions of'welfare reform'. The challenges represented are critical to all segments of
a given community, and the City of Muskegon is no exception. The Dept. of HUD is promoting a
three-pronged response to begin addressing this issue, and the City of Muskegon will make every
attempt to expand its partnerships with HUD, the State of Michigan, and community organizations
to provide viable services to its residents affected by the legislation by promoting the following
endeavors:
* Support for the creation ofjob opportunity through economic development
activities;
* Support and monitoring of innovative uses of tenant-based rental assistance
linking welfare recipients to jobs;
* Support and continued promotion of the family self-sufficiency concept;
* Provide supportive technical assistance when needed, to help welfare
recipients make the transition from dependency to work through expansion
initiatives, funding for supportive services and encourage initiatives that
provide access to education and job training.
The City acknowledges several area agencies that provide assistance and supportive services with
these common goals, and will continue to expand its role and partnerships, as debate on this issue and
its impact continue to be assessed.
Public Housing
The Muskegon Housing Commission an independent agency from the City of Muskegon is not
eligible for the Comprehensive Grant because of the number of housing units in its inventory.
The City of Muskegon was recently informed by the Muskegon Housing Commission that the
Commission has received approval for the TARC division of HUD to demolish the "infamous" eight
Turn-Key 3 homes.
The City has agreed to demolish 3 of the homes with CDBG funding. These homes are presently on
non-conforming parcels that will not meet zoning for new construction.
One of the eight homes, the city has agreed to demolish with "General funds" monies because the site
is not in a designated "low/mod" neighborhood.
Four of the currently blighted structures will be demolished with HOME funding and the structures
will replaced with new single family homes through the City's Infill efforts.
The demolition will hopefully begin by early summer of 2003.
The City will continue to work with the independent agency whenever economically and logistically
possible to help the Muskegon Commission rid itself of the troubled label.
HOUSJNG AND COMMUNITY DEVELOPMENT NEEDS
Conditions
The overall condition of housing units in Muskegon is good. Much of the city's substandard housing
stock has been eliminated over the past 20 years through Urban Renewal and the City's ongoing
demolition program. On the other hand the number of the city's housing units continue to need
repairs. Reinvestment in the City's housing stock has decreased with the decline in city property
values which has lead to further deterioration and a decrease in the number of units which are
suitable for rehabilitation.
Housing Needs
The greatest housing problem occurs in non-elderly renter households. In 1980 55% of the city's
low-income households were homeowners and 45% were renters. By 1990, the ratio had reversed
with only 345 of the City's very low-income households being homeowners and 66% were renters,
the 21 % increase in the very low income rental population resulted in increased demand for rental
units that are affordable to the very low-income families, most of whom need some form ofincome
or rental subsidy to meet housing needs. 1.364 or 17% of the city's total owner-occupied households
have incomes between 5 I% and 80% of the area median. This is interesting because it is 5% lower
than the percentage ofhomeowners who fall below 50% of median income. The higher percentage
of very low-income homeowners can be explained by the large numbers of elderly homeowners on
fixed incomes that fall into the very low-income category. Most of these elderly families purchased
their homes when they were employed and lack sufficient funds to maintain the homes.
Housing Market Conditions
According to the 1990 U.S. Census the City of Muskegon had 16,019 housing units; 8.079 renter;
6,700 renter and 1,249 vacant. A loss of 331 units occurred since 1980, but the loss was higher than
the City's population loss. Overall City vacancy rates have remained relatively stable. However,
among the subsidized rental properties that are designed to remain affordable to the City's low-income
residents, there are few vacancies other than normal turnover.
Affordable Housing Needs
Owner-occupied housing units and rental units are all in great need of maintenance and repair. There
is a need for additional rental subsidies for renter household. The Muskegon Housing Commission
is the designated Public Housing agency for the City. The Housing Commission has had a major
impact in the last few years creating affordable housing units. There is an extremely high demand for
Section 8 Rental Assistance. The Section 8 waiting list was recently open from March 18 thru March
22,2002. During the period the Muskegon Housing Commission received a total 1257 applications
for Section 8 rental assistance. Which illustrates the continuous need for additional rental assistance
for the low and moderate-income residents of Muskegon
Homeless Needs
The homeless exist in Muskegon County but are nearly invisible. A larger number of households are
at-risk of homelessness. These households use area food pantries, soup kitchens, and short term rent
assistance.
Precise data did not exist for the homeless and at-risk populations at the beginning of the City's five-
year plan; however changing economic trends and household demographics, have begun to formulate
a statistical database which identifies an increasing population. These trends are readily referred to
in the Muskegon Area Homeless Coalition Continuum of Care Plan, finalized during early, 1999.
This public policy approach and strategy for meeting the needs of the homeless and those populations
at risk of becoming homeless demonstrates that homelessness is not caused merely by a lack of
shelter, but involves a variety of underlying, unmet needs ---- physical, economic, and social, and
refines a stronger focus toward developing strategies to address these needs. The result has enacted
a specialized care system to move homeless persons to permanent housing with associated support
services to provide outreach, intake and assessment to be coordinated with a centralized tracking
system to define services, broad access to emergency shelters, transitional housing and record
demographic data of persons served. The expected outcome will guide the allocation of resources
addressed by the Consolidated Plan, with a broad-based approach, including focussed discussion
among surrounding municipalities, and area wide service providers to establish a balanced system
which includes emergency shelter, transitional housing, and associated supportive assistance.
Public and Assisted Housing Needs
Name of Local Housing (LHA): Muskegon Housing Commission. The Commission operates
Hartford Terrace Apartments, a 160-unit elderly/disabled housing complex; Section 8 Tenant
Assistance vouchers/certificates.
Conditions ofLHA units: There has been an effort in the last 2 years to conduct major rehabilitation
at the Housing Authority although money has been limited.
There are no current or outstanding court orders, consent decrees or formal U.S. Department of
Housing & Urban Development sanctions which act as barriers to affordable housing within the City
of Muskegon. However in order to facilitate the City's efforts, the City has requested waivers
through the Enterprise Community project, as described below:
I. Waiver Request - Public Assistance Programs
The use of public assistance grants to offset employers' salary costs for newly hired public
assistance recipients in order to help recipients get jobs and to expand jobs.
Pilot projects which mandates job search for ADC applicants.
Extension of Medicaid coverage to ADC clients entering the work force beyond the 12-
month period currently provided.
Exemption for one vehicle regardless of value from the current asset limitations.
2. Waiver Requests - Public Housing Facilities
Waiver to keep elderly families only in housing for elderly and not disabled residents of
any age.
Lead-Based Paint Strategy
The Muskegon County Health Department is the primary agency involved in the identification oflead
poisoning cases in the community and as such the lead agency for hazard identification and treatment
of persons with elevated blood levels oflead. Youth in Muskegon are at high risk for lead poisoning
for a number of reasons:
97% of the City's housing units were built before 1979
12% of the City's housing units are estimated in substandard condition
26% of the City's households are below the poverty level
41 % of the City's housing units are rental with many concentrated in the inner city
Since September 2001 the City of Muskegon has tested all structures by a lead based risk assessor
in its rehabilitation programs excluding emergency repair.
Anti-Poverty Strategy
The City of Muskegon makes concerted efforts to enhance the quality of life for all of its citizens,
including families and individuals living at or below federally established poverty standards. The
standards are defined by household income levels, tenure and makeup, extent of overcrowding and
substandard conditions, unemployment, human service needs, and homelessness.
In order to assist residents with breaking the cycle of poverty, the City has embarked on several
projects, to break the poverty cycle by implementation of several centrally focussed strategies:
* Encourage the improvement of existing housing conditions by continuing support ofCity-
administered housing programs, i.e. code enforcement, low-cost comprehensive
grant/loan repair assistance; continued encouragement and support for initiatives aimed
at first-time homebuyers, and mortgage financing which fosters affordable housing
opportunities, such as those currently provided by the Neighborhood Investment
Corporation.
activities, including training and re-training of displaced workers, the development of
projects which target economic opportunity for designated poverty-level segments, and
to assist new and retain/expand existing businesses.
* By supplying funding when available to a number of public services that work diligently
to assist low income resident break the cycle of poverty. These public services include
areas of assistance that focus on health especially minority community, legal services,
childcare, transportation and education.
Coordination
As part of the community-based partnership organizations and agencies participating in the
development of the Consolidated Plan, over 100 local service providers were consulted.
Overwhehning support was provided, with many agencies offering additional programs and resources,
such as: The Muskegon Housing Commission, Muskegon Department of Social
Services (State of Michigan), Muskegon County Department of Community Mental Health,
Muskegon County Health Department, Michigan State Housing Development Authority and
Michigan Region 14 Area Agency on Aging.
The 2003 -2004 CDBG/Home activities are significantly consistent with the priorities as developed
in the 2000 - 2004 Consolidated Plan.
The City is meeting all its stated housing priorities through its partnership with the CHDO' s and its
in-house infill and emergency repair programs.
PRIORITY 1. To allocate at least the required amount of HOME funding to area CHDO's to assist
low-income with downpayment assistance and increase their ability to obtain mortgages.
PRIORITY 2. By working through the City's Infill project to increase the number of new homes
constructed within the targeted areas.
PRIORITY 3. Rehabilitate owner-occupied and rental structures through the community.
The non-housing priorities are consistent with those established in the Consolidated Plan because the
2003 - 2004 activities in this category promote small business development and overall community
economic development.
PRIORITY I. To work collaboratively to increase new employers and the availability of skilled
workforce.
PRIORITY 2. Increase developable land in the areas of commercial, industrial and residential.
PRIORITY 3. Increase number of small businesses.
The City of Muskegon public service is highly correlated with the established Consolidated Plan that
was under the category of Neighborhood Objectives. The 2003-2004 activities consist of
infrastructure improvements, recreation activities, senior programs, education support and
neighborhood improvement programming.
PRIORITY 1. Increase Leisure Services activities/facilities.
PRIORITY 2. Improve quality oflife in low/moderate income neighborhoods.
PRIORITY 3. Increase neighborhood retail opportunities
PRIORITY 4. Improve and upgrade city public safety equipment
PRIORITY 5. To continue to work with and when possible supply financial assistance to
subrecipients in the health field.
As in the past the City of Muskegon will periodically during fiscal year review its activities to assure
that the performances of its programs are meeting its goals and objectives. This will be accomplished
by reviewing subrecipients and CHDO's quarterly reports as well as conducting on-site monitoring
visits. As well as reviewing the department's performance on a monthly / quarterly basis. All
subrecipients and CHDO' s are informed in their agreements that they have one year to complete their
projects (June 1 through May 31) unless an extension is granted by the City of Muskegon Community
and Neighborhood Services
Public Comment
The City of Muskegon advertised the availability of 2003-2004 Action Plan in the Muskegon
Chronicle the county's largest daily newspaper. The comment period for the Action Plan was March
22, 2003 to April 22, 2003. The City received no comments during that period.
AGENDA ITEM NO. ;),oo ~ - 3'() t·)
CITY COMMISSION MEETING _ _ __ _
TO: AND CITY COMMISSION
FROM:
DATE: April 2, 2003
SUBJ: Request for Permission to Apply for 2003 USFA Grant
SUMMARY OF REQUEST:
The Fire Department is requesting City Commission permission to apply for 2003 United
States Fire administration "Assistance to Firefighters Grant Program" to provide
firefighter equipment to enhance operational safety.
FlNANCIAL IMP ACT:
$11,300 match through department capital funds.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION
Staff recommends approval of grant application to USFA for fire equipment acquisition.
COMMITTEE RECOMMENDATION:
April 2, 2003
Honorable Mayor and City Conunission
Through the City Manager
Re: 2003 United States Fire Administration Grant Request
Dear Mayor and Commissioners:
I am requesting permission to submit for the 2003 United States Fire Administration
"Assistance to Firefighters Grant Program". These grants tlu-ough FEMA provide funds
to the local jurisdictions for programs to both protect citizens and our firefighters.
for 2003, our program is an enhancement to our emergency operations equipment. Th.is
grant will provide updates to self-contained breathing apparatus, vehicle
communications, and fire ground communications.
The anticipated result will be a reduction in the number of potential injuries and fire
deaths in households and fire depaiiment staff.
Proposed $112,845.00 grant will require a 10% local match. This will be accomplished
. through department capital funds. There is no additional department staff requested,
since existing personnel can provide this level of delivery.
~ rely,
~;{_ Q_
Patrick Simps~ ,____.
Fire Chief
Commission Meeting Date: April 8, 2003
Date: April 1, 2003
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Community Development Block Grant/HOME Final
allocation decision
SUMMARY OF REQUEST: For the City commission to make their final
allocation decision concerning the 2003-2004 CDBG/HOME fiscal year.
The Commission has received the recommendation from the citizen
District Council and the City administration. The commission made their
preliminary recommendations during the March 18, 2003 City
Commission meeting.
After receiving the Commissions final allocation decision, the CNS office
will amend the City's 2003-2004 Action plan if needed and continue the
comment period until April 22, 2003. At that time, the City will request
the U. S. Housing and Urban Development department for the release of
the funds for the 2003-2004 fiscal year to begin June 1, 2003.
FINANCIAL IMPACT: The decision will determine the CDBG/HOME
budget for 2003-2004.
BUDGET ACTION REQUIRED: The decision will establish the budget.
STAFF RECOMMENDATION: The Commission has already received
the staff recommendation.
COMMITTEE RECOMMENDATION: The Commission has already
received the Citizen's District Council recommendations.
2003 - 2004 CDBG / HOME ACTIVITY
City Commission
Administration Citizen Distsrict Council Preliminary City Commission
Organization Name/Program Tith, Amount Requested Recommendation Recommendation R~C_QJn_mend_ijtion Final Deci~iQO
1 West Ml Veterans 5,000 5,000 5,000 5,000
Veterans Assistance
2 American Red Cross 5,000 5,000 5,000 5,000
Senior Transportation
3 Western Ml Legal Services 38,504 10,500 10,500 10,500
Counseling/Legal Education
4 Volunteer Muskegon 5,000 5,000 5,000 5,000
Mapping
5 Volunteer Muskegon 5,000 5,000 5,000 5,000
Keep Kids In School
6 HealthCARE 6,887 6,887 6,887 6,887
Health screening to /ow-income
7 Muskegon Community Health Project 5,000 5,000 5,000 5,000
"Miles for Smile Dental Services"
8 Pioneer Resources 8,580 0 0 0
Rec & Leisure for Develop Disabilities
9 Family Service Center 15,000 8,500 8,500 8,500
DAD'S Program
10 Bishop Daycare & Learning Center 25,000 0 0 0
Education Program Expense
11 Youth Outreach 79,900 0 0 0
Purchase of Building
12 Inspections 155,000 90,000 90,000 90,000
Demolition
13 Community and Neighborhood Services 185,000 172,500 172,500 172,500
Administration
City Commission
Administration Citizen Distsrict Council Preliminary City Commission
Organization Name/ProgramTitJe Amount Requested Recommendation Recommendation Recommendati<>_I)_ Final Decision
14 Community and Neighborhood Services 165,000 155,000 155,000 155,000
Vinyl Siding Program
15 Community and Neighborhood Services 190,000 185,000 185,000 185,000
Emergency Repair Program
16 Community and Neighborhood Services 115,000 115,000 115,000 115,000
Rehab Service Deliver Program
17 Planning/DPW 50,000 40,000 40,000 40,000
Lot Clean up
18 Community and Economic Development 45,000 45,000 45,000 45,000
Code Enforcement
19 Community and Economic Development 50,000 30,000 30,000 30,000
Fagade
20 Finance 245,000 245,000 245,000 245,000
Repayment of Shoreline Dr. Bond Project
21 Depart of Public Works 60,211 50,000 50,000 50,000
Senior Transit
22 Engineering I CNS 50,000 48,500 48,500 48,500
Sidewalk Assessment Relief
23 Engineering/ CNS 80,000 70,000 70,000 70,000
Street Assessment Relief
24 Leisure Services 77,000 70,000 70,000 70,000
General/Inner-City Recreation
25 CNS/Fire 3,500 0 0 0
Operation "Save Lives"
Total CDBG Request/Recommendations $ 1,669,582 $ 1,366,887 $ 1,366,887 $ 1,366,887 UNDETERMINED
Total CDBG Allocation 1,217,000 1,217,000 1,217,000 1,217,000 1,217,000
Program/Reprogram Income 150,000 150,000 150,000 150,000 150,000
Total 1,367,000 1,367,000 1,367,000 1,367,000 1,367,000
Total CDBG Allocation - Request= Difference $ (452,582) $ 113.00 $ 113.00 $ 113 #VALUE!
City Commission
Administration Citizen Distsrict Council Preliminary City Commission
OrganizatiQ!l Name/Program Title Amount Requested Recommendation Recommendation Recommendation Final Decision
1 Neighborhood Investment Corp. 130,350 85,000 85,000 85,000
Housing Rehab, Neighborhood Imp.
2 Bethany 73,000 55,000 55,000 55,000
Housing Rehabilitation
3 Habitat for Humanity 35,000 25,000 25,000 25,000
Acquistion
4 Community and Neighborhood Services 80,000 60,000 60,000 60,000
Tax-Reverted Infill
5 Community and Neighborhood Services 60,000 50,000 50,000 50,000
Tax-reverted Rehabilitation
6 Community and Neighborhood Services 10,000 10,000 10,000 10,000
Demolition
7 Community and Neighborhood Services 57,000 57,000 57,000 57,000
HOME Administration
Total HOME Request/Recommendations $- 445,350 $ 342,000 $ 342,000 $ 342,000 UNDETERMINED
Total HOME Allocation 320,000 340,111 340,111 340,111 340,111
Program/Reprogram Income 20,000 20,000 20,000 20,000
Total 320,000 360,111 360,111 360,111 360,111
Total HOME Allocation - Request= Difference $ (125,350) $ 18,111 $ 18,111 $ 18,111 #VALUE!
Date: April 8, 2003
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Consideration of Bids
Terrace Street, Iona to Peck
SUMMARY OF REQUEST:
The Terrace St., Iona to Peck contract be awarded to Grant tower Excavating of Grant, Ml.
Grant Tower was the lowest, see attached bid tabulation, responsible bidder with a bid
price of $484,784.45.
FINANCIAL IMPACT:
The construction cost of $484,784.45 plus related engineering expenses.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Award the contract to Grant Tower Excavating
COMMITTEE RECOMMENDATION:
H-1567, W-633, S-578 TERRACE ST. IONA AVE. to PECK ST.
BID TABULATION - 03/18103
CONTRACTOR GRANT TOWER EXC ORTH RIVER EXCAVATIN WADEL STABILIZATION RINCE BRIDGE & MARIN
ADDRESS 13064 VVlSNER 9918 N. RIVER RD 2500 OCEANA DR POBOX510
CITY/ST/ZIP GRANT. Ml 49327 NEWAYGO. Ml 49337 HART. Ml 49420-8116 GRAND HAVEN, Ml 49417
DESCRIPTION QTY UNIT UNIT PRICE OTAL PRIC UNIT PRICE OTAL PRIC UNIT PRICE TOTAL PRICE UNIT PRICE OTAL PRIC
ADJUST MANHOLE CASTING EACH 5443.00 $5,316.00 5300,00 $3,600.00 $400.00
' ADJUST WATER VALVE CASTING " $156.00 $156.00 $300.00 5300.00 $250.00
$4,800.00 S250.00 $3,000.00
' AGGREGATE BASE COURSE 22A@ a·· C.I.P. '
5775
EACH
SQ.YD S5.10 $29,452.50 S6.50 S37.537.50
$250.00 $100.00 $100.00
' BENDS D.CJ. 6" 45° M.J.
• EACH $147,00 S1.176.00 $250.00 $2,000.00
S5.50 $31,762.50 S8.00 $46,200.00
' BENDS D.CJ. 8" 45• M.J
$500.00 $4,000.00 $150.00 $1,200.00
' BIT. LEVELING MIX 3C@ 165#/S.Y " EACH $203.00 $10.353,00
S48.50 $24.541.00
$325.00 $16,575.00
S42.95 S21,732.70
$500.00 S25,500.00 $175.00 $8,925.00
T ' BIT. TOP MIX 4C MOO. POYLMER ASPH.@ 220#/S.Y "'
'°'
TON
TON S47.60 $33.558.00 S49.80 S35,109.00
$39.04
$45.27
$19,754.24
$31,915.35
$39.05 $19,759.30
$45.30 $31,936.50
• CATCH BASIN CASTING E,J.#5105 OR EQUAL
' EACH $583.00 S583.00 $500.00 $500.00 $450.00 $450.00 $310.00 $310.00
'10 CATCH BASIN CASTING E.J.11!104S OR EQUAL
CATCH BASIN FLAT TOP " EACH $622.00 S8,086.00
$1,010.00 $14.140.00
$550.00
$250.00
$7,150.00
$3,500.00
$475.00
$1,250.00
$6,175.00 $380.00 $4,940.00
" EACH S17,500.00 51,250.00 $17.500.00
"12 CEMENT
CONC. BASE COURSE 8"' ' TON
SQ.YO.
5158.00
S21.00
S790.00 $165.00 $825.00 $0.01 $0.05 $100.00 S500.00
13 CONC. CURB 6"x 14" " LIN.FT. $10.00
S546.00
S240.00
$21.18
$10.00
$550.68
$240.00
S30.00
$15.00
$780.00
$360.00
$40.00 $1.040.00
14 CONC. CURB & GUTTER F-4 MOD. "
3100 LIN.FT. $9.75 $30,225.00 $8.53 $26,443.00 S11.00 $34,100.00
$12.00 $288.00
S8.75 $27,125.00
15 CONC. DRIVE APPROACH 6" STD SQ.YO. S22.50 $12.487.50 S22.28 $12,365.40 $16,650.00
16 CONC.SIDEWALK4" '"
7517 SO.FT. $2.25 $17.048.25 $2.20 $16,669.40
S30.00
$2.75 S20,836.75
$23.40 $12.987.00
S2.00 $15.154.00
17 CONC.SIDEWALK6" 1035 SO.FT. $2.50 $2,587.50 S2.48 $2,566.80 S3.00 $3,105.00 $2.50 S2.587.50
18 CORP. STOP 1" MUELLER #15000 OR EQUAL $392,00 $10,192.00
19 CROSSD.C.l.8"'x8"M.J. " EACH
S561.00 $1,122.00
$275.00
$650.00
$7,150.00
$1,300.00
$450.00
$375.00
$11,700.00
$750.00
$60.00 S1.560.00
20 CURB STOP l"'W I BOX MUELLER #15150 OR EQUAL ' EACH
$451.00 $8,569.00 $130.00 $2,470.00
$440.00 S880.00
21 CURB STO-' 2" W /BOXFORD B44-777M OR EQUAL " EACH
EACH $764.00 S1.528.00 S200.00 $400.00
S450.00
$750.00
$8,550.00
$1,500.00
$110.00 $2,090.00
22 HYDRANT STD. ' EACH $1,290,00 $9,030.00 $1,750.00 $12,250.00 $1,550.00
$290.00 S580.00
23 MACHINE GRADING MOO '
15,44 $TA_ $2,480.00 $38,291.20 $2,500.00 $38,600.00 $750.00
$10,850.00
$11,580.00
$1,600.00
$300.00
$11,200.00
$4,632.00
24 MANHOLE CASTING E.J.#1000 OR EQUAL
25 MANHOLE STD. 4' 1.D. o· TO 10' DEEP "' EACH
EACH
S596.00
$1.346.00
S12,516.00
$12,114.00
$500.00
$1,600.00
$10,500.00
$14,400.00
$550.00
$1,500.00
$11,550.00
$13,500.00
$300.00
$1,425.00
$6,300.00
$12,825.00
26 MANHOLETAP15" S420.00 $840.00 $350.00 $700.00
27 RECONSTRUCTING MANHOLES ' EACH
V.FT. $300.00 $900.00 $225.00 $675.00
$1.250.00 $2,500.00 $SOD.OD $1,000.00
28 REDUCERS a· TO 4" 0.C.I. M.J. ' $250.00 $SOD.OD $325.00 $650.00
$275.00
$200.00
$825.00 S450.00 $1,350.00
29 REDUCERS 8" TO 6" O.C.I. M.J. ' EACH
S225.00 $2,025.00 $375.00
$400.00 $125.00 $250.00
30 REMOVING BIT. DRIVE APPROACH WI CONC. CURB ' EACH
SQ.YD $4.00 $380.00 $7,00
$3.375.00 $200.00 $1,800.00 $150.00 $1,350.00
REMOVING CATCH BASIN " $220.00 $2,640.00 $300.00
S665.00
$3,600,00
$4.50 S427.50 S11.00 $1,045.00
"
32 REMOVING CONC. DRIVE APPROACH " EACH
SQ.YO $1.50 $622.50 $9.00
$200.00
$4.50
S2.400.00 $400.00 $4,800.00
33 REMOVING CONC. SIDEWALK "'
8881 SQ.FT. $0.15 $1,332.15 $1.00
S3.735.00
$8,881.00 $0.75
S1.867.50
$6,660.75
S10.00
$1.75
$4,150.00
$15,541.75
34 REMOVING MANHOLE S222.00 $5,772.00
35 REMOVING PAVEMENT "
6800
EACH
SQ.YO. S0.94 $6,392.00
$500.00
$9.00
$13,000.00
$61,200.00
S300.00
$5.00
$7,800.00
$34,000.00
$400.00
$5.00
$10.400.00
$34,000.00
36 REMOVING TREES 13" TO 24" $350.00 $350.00 $675,00 $675.00
37 REMOVING TREES 25" TO 36" ' eACH
eACH S650.00 $650.00 $1,200.00 $1,200.00
$550.00 S550.00 S250.00 $250.00
38 SANITARY SEWER SERVICE 6" SOR 35 '
rn LIN. FT $16.00 $6,992.00 $18.00 S7.866.00
$750.00
$25.00
$750.00
$10,925.00
S400.00
$30.00
$400.00
$13,110.00
39 SANITARY SEWER 8"' SOR 35 LIN. FT. $21.00 $1,932.00 $30,00 $2,760.00
40 SANITARY SEWER 15" SOR 35 "
2385 LIN. FT. $18.75 $44,718.75 $37.00 $88.245.00
$28.00
$34.00
$2,576.00
$81,090.00
$32.00
$34.00
$2.944.00
$81,090.00
SANITARY SEWER 16" O.C.I. CL.52 LIN. FT. $50.00
"42 SANITARY SEWER WfE 15"x 6" SOR 35 " EACH $190.00
$2,200.00
$4,370.00
$50.00
$225.00
S2,200.00
$5,175.00
$50.00
$175.00
$2,200.00
$4,025.00
$85.00 S3.740.00
43 SLEEVES LONG 4" D.C.I. M.J. " $1,915.00 $3,830.00 5300,00 S600.00 $1,000.00 $2,000.00
$225.00 S5.175.00
« SLEEVES LONG 6" D.C.I. M.J. ' eACH
$1,952.00 $17,568.00 $350.00 $3,150.00 $1,000.00
$370.00 S740.00
45 SLEEVES LONG 8" D.C.L M.J ' eACH
$2,023.00 $4,046.00 $400.00 $800.00 $1,000.00
$9,000.00 $390.00 $3,510.00
46 STORM SEWER 10" SOR 35 ' EACH
LIN. FT. $21.50 $9,503.00 $23.00 $10,166.00
$2,000.00 $450.00 S900.00
41 TEE 0.C.I. 8" x 8" x 6" M.J. "' $295.00 $2.065.00 $525.00 $3,675.00
S34.00 $15,028.00 $32.00 $14,144.00
48 TEE 0.C.L 8" x 8" x 8" M.J ' EACH
$315.00 $2,205.00 $550.00
$300.00 $2,100.00 $400.00 $2,600.00
49 TERRACE GRADING '
1571
EACH
LIN. FT. $5.60 S8,797.60 $15.00
$3,850.00
S23,565.DO
$325.00
$9.75
$2,275.00
$15,317.25
$420.00
S14.00
$2,940.00
$21,994.00
50 TRAFFIC CONTROL LUMP $4,150.00 $4,150.00
51 VALVE6"GATEM,J,W/60X
'
7 EACH $510.00 $3,570.00
$5,500.00
$700.00
$5,500,00
$4,900.00
$15,000.00
$600.00
$15,000.00
$4,200.00
S4,000,00
$560.00
$4,000.00
$3,920.00
52 VALVE 8"GATE M.J. W/SOX eACH S571.00 $9,136.00 $600.00 $12,800.00 $750.00 $12,000.00 $725.00 $11,600.00
53 WATERMAIN4"0.C.I.Cl.52 " LIN. FT. $59.00 $354,00 $50.00 S300.00 S50.00 $300.00 $35.00 5210.00
54 WATERMAIN s• O.C.I. CL. 52 ' LIN. FT. $28.00 $3,360.00 $28.00 S3,360.00 S23.50 $2,820.00 $30.00 $3,600.00
55 WATERMAIN 8" D.C.I. CL. 52 "'
1868 LIN. FT. S18.00 $33,624.00 $32.00 $59,776.00 $28.00 $52,304.00 $30.00 $56,040.00
56 WATERMAIN TAP 2"W I CORP. STOP PER DETAIL EACH $611.00 5611.00 S500.00 S500.00 $750.00 $750.00 $500.00
57 WATER METER PIT COMPLETE ' $1,113.00 $2,226.00 S500.DO $1.000.00 $650.00 $1,300.00 $650.00
S500.00
56 WATER SERVICE 1" TYPE "K" COPPER ' EACH
UN. FT S13.50 $10,759.50 $15.00 $11,955.00 S4.00 $3,188.00
S1.300.00
59 WATER SERVICE 2" TYPE "K" COPPER "' LIN. FT. S27.00 $1,620.00 S15.00 $900.00 $10.00 $600.00
$17.00 $13,549.00
$35.00 S2.100.00
60 WATER VALVE BOX COMPLETE " EACH $95.00 $95.00 $350.00 $350.00 S250.00 $250.00 S240.00 $240.00
'
TERRACE TOTAL $484.784.45 $626,483.48 $589,147.89 $558,302.05
H-1567, W-633, S-578 TERRACE ST. IONA AVE. to PECK ST.
BID TABULATION - 03/18/03
CONTRACTOR KAMMINGA & ROODVOETS JACKSON-MERKEY MILBOCKER & SONS DAN HOE EXCAVATING
ADDRESS 3435 BROADMOOR AVE SE 555 E WESTERN AVE 1256 29TH ST 13664 ROCKY'S RD
CITY/ST/ZIP GRAND RAPIDS. Ml 49512 MUSKEGON. Ml 49440 ALLEGAN, Ml 4901 0 HOLLAND, Ml 49424
DESCRIPTION QTY UNIT UN!T PRICE TOTAL PRICE UNIT PRICE TOTAL PRIG UNIT PRICE TOTAL PRIG UNIT PRICE TOTAL PRICE
1 ADJUST MANHOLE CASTING 12 EACH $340.00 S4,080.00 $440.00 ,280.00 $260.00 $3,120.00 $350.00 $4,200.00
2 ADJUST WATER VALVE CASTING 1 EACH $300.00 $300.00 $350.00 $350.00 $250.00 $250.00 $200.00 $200.00
3 AGGREGATE SASE COURSE 22A@ 8" C.I.P. 5775 SQ.YD. $6.00 $34,650.00 $5.50 $31,762.50 $5.95 $34,361.25 $6.50 $31,037.50
4 BENDS D.C.I. 6" 45° M.J. 8 EACH $265.00 $2,120.00 $210.00 $1,680.00 $200.00 $1,600.00 $150.00 $1,200.00
5 BENDS D.C.I. 8" 45° M.J. 51 EACH $250.00 $12,750.00 $260.00 $13,260.00 $250.00 $12,750.00 $200.00 $10,200.00
6 BIT. LEVEUNG MIX 3C@ 165#/$.Y. 506 TON ;i:,39.50 ,t,1\:1,987.00 $39.05 ,t,1\:1,759.30 $39.04 ;i:,19,ro4.24 $39.10 ,t,19,,84.60
7 BIT. TOP MIX 4C MOD. POYLMER ASPH.@220#/S.Y. 705 TON ::,45.50 ::,32,077.50 $45.30 $31,936.50 $45.27 ::,31,910.35 ::,45.30 $31,936.50
8 CATCH BASIN CASTING E.J.#5105 OR EQUAL 1 EACH $275.00 $275.00 $510.00 $510.00 $530.0[ $530.00 .-50.00 $450.00
9 CATCH BASIN CASTING E.J.#7045 OR EQUAL 13 EACH .,300.00 .,3,900.00 $510.00 $6,630.00 $415,00 $5,395.00 :i:;500.00 :i;s,..,00.00
10 CATCH BASIN FLATTOP 14 EACH $1,000.00 $14,000.00 $1,350.00 $18,900.00 $1,150.00 $16,100.00 ;i:,220.00 $3,150.00
11 CEMENT 5 TON $150.00 $750.00 $160.00 $800.00 $150.00 $750.00 $125.00 $625.00
12 CONG. BASE COURSE 8" 26 SQ.YD. $40.00 $1,040.00 $20.40 $530.40 $19.25 $500.50 $40.00 ,1,1,040.00
13 CONG. CURB 6"x 14" 24 LIN. FT. :i,1o.OO :ti360.00 $9.60 :!i230.40 $9.00 ;'l:1216.00 $12.50 $300.00
14 CONG. CURB & GUTTER F-4 MOD. 3100 LIN. FT. ::,10.00 ::,31,000.00 $8.70 $27,125.00 ::,7.,5 $24,025.00 :i>S.25 :i;28, ... , ... oo
15 CONG. DRIVE APPROACH 6" STD. 555 SQ.YD. $30.00 $16,650.00 $21.50 $11,932.50 $20.25 $11,238.75 $24.00 $13,320.00
16 CONG. SIDEWALK 4" 7577 SQ.FT. ...2.25 ... 11,048.25 $2.10 $15,911.70 $2.00 $15,154.00 ,1,2.35 $11,805.95
17 CONG. SIDEWALK 6" 1035 SQ.FT. $3.25 $3,363.75 :!i2.40 $2,484.00 ::i;2.25 $2,328.15 $3.00 ,1,3, 105.00
18 CORP. STOP 1" MUELLER #15000 OR EQUAL 28 EACH :i>150.00 :i;3,900.00 ,t,e225.00 ,8::>0.00 :i;20.00 ;'l:1520.00 .j)LU0,00 :i;5,200.00
19 CROSS O.C.I. B"x 8" M.J. 2 EACH ,1,500.00 ::,1,000.00 $430.00 ::,860.00 ,1,390.00 ,1,180.00 ::,450.00 $900.00
20 CURB STOP l"W/BOX MUELLER#15150 OR EQUAL 19 EACH ,1,160.00 .:i,3,040.00 $250.00 ~,100.00 S300.00 $5,700.00 ,1,2..::::,.00 :i>4,275.01
21 CURB STOP 2" W /BOXFORD B44-777M OR EQUAL 2 EACH .,22..,.00 -.1450.00 $345.00 :6690,00 :ii375.00 .j)/<.J0.00 :6325.00 $650.00
22 HYDRANT STD. 7 EACH ::,1,500.00 $10,500.00 $1,395.00 ::;9,765.00 $1,400.00 ::;9,800.00 :))1,600.00 :!i11,200.00
23 MACHINE GRADING MOD. 15.44 STA. .:i,1,800.00 $27,792.00 $775.00 $11,966.00 $1,840.00 .:i,28,409.60 ,1, 0.00 :i>23,932.00
24 MANHOLE CASTING E.J.#1000 OR EQUAL 21 EACH $200.00 -.,4,200.00 !5500.00 $10,500.00 $400.00 $8,400.00 .:i,350.00 ., ' 0.00
25 MANHOLE STD. 4' 1.0. O' TO 10' DEEP 9 EACH $1,950.00 $17,550.00 ,t,e1 ,390.00 ::;12,510.00 $1,520.00 ::;13,725.00 $1,800.00 $16,200.00
26 MANHOLE TAP 15" 2 EACH ::,1,300.00 :i,2,600.00 $675.00 $1,350.00 $200.00 $400.00 :i>S00.00 $1,0uo.oo
27 RECONSTRUCTING MANHOLES 3 V.FT. $200.00 $600.00 $460.00 $1,380.00 $180.00 ..,540.00 ,1,100.00 .i,3v0.00
28 REDUCERS 8" TO 4" D.C.I. M.J. 2 EACH :i;300.00 $600.00 :ti190.00 $380.00 :i;310.00 :i;620.00 $175.00 -.,350.00
29 REDUCERS 8" TO 6" D.C.I. M.J. 9 EACH :t32o.OO $2,925.00 :i>200.00 $1,800.00 $315.00 :!i2,835.00 $190.00 $1,710.00
30 REMOVING BIT. DRIVE APPROACH W f CONG. CURB 95 SQ.YO. Jl4.00 :i,380.00 $7.00 $665.00 $6.00 0.00 ;i:6.00 ;i:570.00
31 REMOVING CATCH BASIN 12 EACH ..,330.00 -.,3,960.00 :5475.00 $5,700.00 :±i210.00 $2,520.00 -.,150.00 ;i:1,800.00
32 REMOVING CONG. DRIVE APPROACH 415 SO.YD. $4.00 $1,660.00 8.75 $3,631.25 $4.90 :!i2,033.50 So.OD $2,07::>.00
33 REMOVING CONG. SIDEWALK 8881 SO.FT. ...0.60 ,328.60 0.9i $8,436.95 -.,0.36 ;i:,3,197.16 ::,1.00 ::,8,881.00
34 REMOV\NG MANHOLE 26 EACH $300.00 ..,?,800.00 ;.,,00 $14,950.00 :±i210.00 $5,460.00 $200.00 .:i,5,200.00
35 REMOVING PAVEMENT 6800 SO.YD. ::,o.50 :i:;37,400.00 6.25 :i;42,5u0.00 :i;S.20 :i;35,360.00 :t,8.00 $54,400.00
36 REMOV!NG TREES 13" TO 24" 1 EACH $400.00 J>40U.00 $580.00 J1080.00 $150.0l $150.00 .:i,250.00 ::,250.00
37 REMOVING TREES 25" TO 36" 1 EACH $600.00 $600.00 $880.00 $880.00 $500.00 $505.00 .:i,450.00 $450.00
38 SANITARY SEWER SERVICE 6" SOR 35 437 LIN. FT. :i>28.00 .,12,236.00 $29.00 $12,6(3.00 $29.00 $12,673.00 $35.00 .:i,15,295.00
39 SANITARY SEWER 8" SOR 35 92 UN. FT. ::,40.00 :i,3,680.00 :i,35.00 $3,220.00 $18.00 ,t,e1 ,656.00 :!i40.00 $3,680.00
40 SANITARY SEWER 15" SOR 35 2385 LIN. FT. ::,35.00 $83,475.00 $39.80 :i>94,923.00 2.20 $52,947.00 ;'l:160.00 :ii143,100.00
41 SANITARY SEWER 16" O.C.I. CL.52 44 LIN. FT. .:i,100.00 $4,400.00 $55.00 $2,420.00 $59.00 ::,2,596.00 .:i,65.00 ;i:,2,860.00
42 SANITARY SEWER WfE 15"x 6" SOR 35 23 EACH .,225.00 $5,11::>.00 $180.00 $4,140.00 $120.UO $2,875.00 s 175.00 -.,4,025.00
43 SLEEVES LONG 4" D.C.L M.J. 2 EACH $600.00 $1,200.00 $390.00 $780.00 ,t,e115.00 :i>230.00 ~1/5,00 $3..,0.00
44 SLEEVES LONG 6" D.C.L M.J. 9 EACH .:i,650.00 ::,5,850.00 $490.00 $4,410.00 ::,150.00 :i>1,350.00 ;i:,200.00 :!i1,800.00
45 SLEEVES LONG 8" D.C.I. M.J. 2 EACH .,700.00 .:i,1,400.00 60.00 1,120.00 !!>200.00 ..,400.00 S22o.OO .:i,450.00
46 STORM SEWER 10" SOR 35 442 LIN. FT. $23.00 $10,166.00 :ti22.00 9,724.00 $19.50 $8,619.00 $30.00 $13,260.00
47 TEE D.C.I. 8" x 8" x 6" M.J. 7 EACH $350.00 :i>2,450.00 $270.00 1,890.00 6::>.00 $1,855.00 :i>300.00 $2,100.00
48 TEE 0.C.I. 8" x 8" x 8" M.J. 7 EACH .:i,370.00 $2,625.00 $295.00 &?,065.00 $285.00 ,1,1,995.00 $325.00 :i>2,275.00
49 TERRACE GRADING 1571 LIN. FT. .,10.00 $15,710.00 $8.45 $13,274.St $1.95 $3,063.45 $12.00 ::,18,852.00
50 TRAFFIC CONTROL 1 LUMP ::,1 u,000.00 $10,000.00 :i>8,475.00 ,t,8,4t::>.OO :i;4,000.0L ::;4,000.00 :i;r,c>oo.oo '<)I ,500.0Q
51 VALVE 6" GATE M.J. W/BQX 7 EACH $600.00 ... 4,200.00 $590.00 :li4,130.00 $590.00 :li4,130.00 :i,500,00 >3.500.00
52 VALVE 8" GATE M.J. W/BOX 16 EACH .,, 00.00 $11,200.00 ,t,/75.00 :i>12,400.00 :i>795.00 :i>12,t20.00 ~ 650,00 :i>10,400.00
53 WATERMAIN 4" D.C.I. CL. 52 6 LIN. FT. :i>4::>.00 :i>270.00 $35.00 $210.00 .}30.00 .:i,180.00 ::,3o.OO ...210.00
54 WATERMAIN 6" O.CJ. CL 52 120 LIN. FT. ::,48.00 ~5,760.00 $36.00 $4,320.00 $30.00 $3,600.00 >20.00 $2,400.00
55 WATERMAIN 8" D.C.I. CL. 52 1868 LIN. FT. .:i,24.00 $44,832.00 :±i38.90 $72,665.20 :t,32.::>0 :i;60,r10.00 :!i4::>.00 $84,060.00
56 WATERMAIN TAP 2"W/CORP. STOP PER DETAIL 1 EACH $300.00 $300.00 ,t,e535.00 $535.00 :))100.00 $100,00 $500.00 $500.00
57 WATER METER PIT COMPLETE 2 EACH $500.00 $1,000.00 $745.00 $1,490.00 $725.00 $1,400.00 -.,900.00 $1,oOO,vv
58 WATER SERVICE 1" TYPE "K" COPPER 797 LIN. FT. .:i,13.00 $10,361.0( $17.50 $13,947.50 S14.00 $11,158.00 ~1£..00 $9,564.00
59 WATER SERVICE 2" TYPE "K" COPPER 60 LIN. FT. $20.00 $1,200.00 $24.75 :!i1 .485.00 $18.00 $1,080.00 :i>16.00 $960.00
60 WATER VALVE BOX COMPLETE 1 EACH $200.00 $200.00 $450.00 $450.00 $505.00 $505.00 $150.00 .:i,150.00
TERRACE TOTAL $564,727.10 $598,974.15 S492, 156.55 $655,813.55
H-1567, W-633 & S-578 TERRACE ST. IONA to PECK
STREET, WATERMAIN & SEWER IMPROVEMENTS
ENGINEER'S ESTIMATE FEBRUARY 26 2003
DESCRIPTION QUANTITY UNIT PRICE PRICE
1 ADJUST MANHOLE CASTING 12 EACH $300.00 $3,600.00
2 ADJUST WATER VALVE CASTING 1 EACH $275.00 $275.00
3 AGGREGATE BASE COURSE 22A@ 8" C.I.P. 5775 SQ.YD. $5.00 $28,875.00
4 BENDS D.C.L 6" 45° M.J. 8 EACH $200.00 $1,600.00
5 BENDS D.C.I. 8" 45° M.J. 51 EACH $250.00 $12,750.00
6 BIT. LEVELING MIX 3C@ 165#/S.Y. 506 TON $40.00 $20,240.00
7 BIT. TOP MIX 4C MOD. POYLMER ASPH.@ 220#/S.Y. 705 TON $60.00 $42,300.00
8 CATCH BASIN CASTING E.J.#5105 OR EQUAL 1 EACH $450.00 $450.00
9 CATCH BASIN CASTING E.J.#7045 OR EQUAL 13 EACH $450.00 $5,850.00
10 CATCH BASIN FLATTOP 14 EACH $1,300.00 $18,200.00
11 CEMENT 5 TON $175.00 $875.00
12 CONG. BASE COURSE 8'' 26 SQ.YD. $30.00 $780.00
13 CONG. CURB 6"x 14" 24 LIN. FT. $10.00 $240.00
14 CONG. CURB & GUTTER F-4 MOD. 3100 LIN. FT. $9.00 $27,900.00
15 CONG. DRIVE APPROACH 6" STD. 555 SQ.YD. $28.00 $15,540.00
16 CONG. SIDEWALK 4" 7577 SQ.FT. $2.50 $18,942.50
17 CONG. SIDEWALK 6" 1035 SQ.FT. $3.50 $3,622.50
18 CORP. STOP 1" MUELLER #15000 OR EQUAL 26 EACH $225.00 $5,850.00
19 CROSS D.C.I. 8"x 8" M.J. 2 EACH $450.00 $900.00
20 CURB STOP I" W / BOX MUELLER #15150 OR EQUAL 19 EACH $250.00 $4,750.00
21 CURB STOP 2" W /BOXFORD 844-777M OR EQUAL 2 EACH $300.00 $600.00
22 HYDRANT STD. 7 EACH $1,400.00 $9,800.00
23 MACHINE GRADING MOO. 15.44 STA. $500.00 $7,720.00
24 MANHOLE CASTING E.J.#1000 OR EQUAL 21 EACH $500.00 $10,500.00
25 MANHOLE STD. 4' 1.0. O' TO 10' DEEP 9 EACH $1,500.00 $13,500.00
26 MANHOLE TAP 15" 2 EACH $600.00 $1,200.00
27 RECONSTRUCTING MANHOLES 3 V.FT. $400.00 $1,200.00
28 REDUCERS 8" TO 4'' O.C.I. M.J. 2 EACH $190.00 $380.00
29 REDUCERS 8" TO 6" D.C.I. M.J. 9 EACH $200.00 $1,800.00
30 REMOVING BIT. DRIVE APPROACH W / CONC. CURB 95 SQ.YD. $5.00 $475.00
31 REMOVING CATCH BASIN 12 EACH $400.00 $4,800.00
32 REMOVING CONG. DRIVE APPROACH 415 SQ.YD. $6.00 $2,490.00
33 REMOVING CONG. SIDEWALK 8881 SQ.FT. $1.00 $8,881.00
34 REMOVING MANHOLE 26 EACH $500.00 $13,000.00
35 REMOVING PAVEMENT 6800 SQ.YD. $5.00 $34,000.00
36 REMOVING TREES 13" TO 24" 1 EACH $400.00 $400.00
37 REMOVING TREES 25" TO 36" 1 EACH $500.00 $500.00
38 SANITARY SEWER SERVICE 6" SOR 35 437 LIN. FT. $28.00 $12,236.00
39 SANITARY SEWER 8" SOR 35 92 LIN. FT. $28.00 $2,576.00
40 SANITARY SEWER 15" SOR 35 2385 LIN. FT. $36.00 $85,860.00
41 SANITARY SEWER 16" D.C.I. CL.52 44 LIN. FT. $45.00 $1,980.00
42 SANITARY SEWER WYE 15"x 6" SOR 35 23 EACH $150.00 $3,450.00
43 SLEEVES LONG 4" O.C.I. M.J. 2 EACH $350.00 $700.00
44 SLEEVES LONG 6" D.C.I. M.J. 9 EACH $400.00 $3,600.00
45 SLEEVES LONG 8" D.C.I. M.J. 2 EACH $450.00 $900.00
46 STORM SEWER 10" SOR 35 442 LIN. FT. $25.00 $11,050.00
47 TEE D.C.L 8" x 8" x 6" M.J. 7 EACH $300.00 $2,100.00
48 TEE 0.C.I. 8" x 8" x 8" M.J. 7 EACH $370.00 $2,590.00
49 TERRACE GRADING 1571 LIN. FT. $10.00 $15,710.00
50 TRAFFIC CONTROL 1 LUMP $15,000.00 $15,000.00
51 VALVE 6" GATE M.J. W/BOX 7 EACH $650.00 $4,550.00
52 VALVE 8" GATE M.J. W/BOX 16 EACH $800.00 $12,800.00
53 WATERMAIN 4" D.C.l. CL 52 6 LIN. FT. $25.00 $150.00
54 WATERMAIN 6" D.C.l. CL 52 120 LIN. FT. $25.00 $3,000.00
55 WATERMAIN 8" D.C.I. CL. 52 1868 LIN. FT. $30.00 $56,040.00
56 WATERMAIN TAP 2" W/ CORP. STOP PER DETAIL 1 EACH $750.00 $750.00
57 WATER METER PIT COMPLETE 2 EACH $700.00 $1,400.00
58 WATER SERVICE 1" TYPE "K" COPPER 797 LIN. FT. $20.00 $15,940.00
59 WATER SERVICE 2" TYPE "K" COPPER 60 LIN. FT. $30.00 $1,800.00
60 WATER VALVE BOX COMPLETE 1 EACH $300.00 $300.00
SUBTOTAL $579,268.00
PARMENTER O'TOOILE
Attorneys al Law
175 West Apple Avenue • P.O. Box 786 • Muskegon, Michigan 49443-0786
Phone 231.722.1621 • Fax 231.722.7866or231.728.2206
www.Parmenlerlaw.com
April 2, 2003
Mayor and City Commission
c/o City Manager
City of Muskegon
933 Terrace Street
Muskegon, Michigan 49442
Re: Initiatory Petition: Gaming in Muskegon
Dear Mayor and Commission:
The City Clerk received initiatory petitions on March 27, 2003, which have been forwarded to
this office for review. Presumably, the initiatory petitions will be presented to the City
Commission on April 8, 2003. The proposed ordinance is captioned "Gaming in Muskegon." A
copy of the proposed ordinance is attached for reference.
After legal review and checking signatures, it may or may not be submitted to the City
Commission for its determination under the Charter. As you know, the City Charter provides
that the City Commission, if the petition is legal and has sufficient signatures, may either adopt
the proposed ordinance or refuse to do so putting it out for a vote of the electors. There is also a
provision for the adoption of an amended ordinance in lieu of the initiated ordinance.
As with another recently submitted initiatory petition relating to gaming in the City of
Muskegon, I have divided this opinion into two areas:
I) Whether the proposed ordinance is a proper subject of an initiatory petition; and
2) Whether the proposed ordinance is valid.
The Proposed Ordinance Is Not a Proper Subject of an Initiatory Petition. The proposed
ordinance concerns the following:
I) Authorize the operation of one casino in the City of Muskegon;
2) Provide for the ownership structure of the casino;
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3) Provide the distribution of profits from the casino, including the fee to be paid the
operator; and
4) Schedule, qualifications, selection criteria and contents of a development
agreement.
The Home Rule Cities Act empowers the city to provide in its charter "initiative" on all matters
within the scope of the city's powers:
Each city may in its charter provide ... (6) for the initiative and referendum on all matters
within the scope of its powers and for the recall of all of its officials."
MCL § l l 7.4(i); MSA §5.2082.
Muskegon's City Charter provides that a proposed ordinance may be submitted to the City
Commission by petition, which proposed ordinance, in tum, may be adopted by the City
Commission or may be submitted to the electorate for adoption, only if the content of the
ordinance is within the scope of the city's powers as set forth above in the Home Rules Cities
Act.
As has recently been opined, if the proposed initiatory ordinance is "administrative" in nature
and not "legislative" in nature, adoption of the proposed ordinance by initiative is not within the
city's powers, and, therefore, should not be submitted to the electorate. West v City of Portage,
392 Mich 458 (! 974); Beach v City of Saline, 412 Mich 731 (1982); Citizens Lobby of Port
Huron, Michigan, Inc. v Port Huron City Clerk, 132 Mich App 412 (1984).
The proposed ordinance, given the pervasive administrative content, is therefore, not within the
city's powers to adopt by initiative. The overwhelming administrative content of the proposed
ordinance include, but is not limited to, the following:
1) The proposed ordinance limits the possible location of casino by requiring it to be
located within certain zoning classifications;
2) Assuming the city has a legitimate basis for determining the ownership structure
of a potential developer, such would be administrative;
3) The process used to select a potential developer of private property is an
administrative decision;
4) The time period for selection ofa developer and limiting the period of time the
city may negotiate a development agreement is administrative in nature;
5) The contents, at least in part, to be included in a development agreement.
Decisions as to whether to enter into a contract, or with whom, or the parameters of any such
contract dealing with development in the city, are administrative decisions and must be left for
implementation by the city commission assisted by their administrative staff. To enable the
electorate to dictate to the city commission by initiatory ordinance the terms and conditions of
any development agreement would clearly infringe upon the administrative functions of the city,
G:\EDSI\FILES\00100\ 1055.001\lTR\AU3029.DOC
'and would impair government. Citizens Lobby ofPort Huron, Michigan, Inc., Supra, a decision
of our Court of Appeals holding as administrative in nature an initiatory petition involving a
proposed ordinance for development of waterfront property acquired by the city and, thus, held
to be outside the city's powers to adopt by initiative. The Court of Appeals held at 421:
To permit the electorate to initiate piecemeal measures affecting land development is as
inconceivable to us as allowing the electorate to initiate ordinances affecting the fiscal
affairs of the city without regard to the budget or to the overall fiscal program. We
believe that the implementation by ordinance of a general policy, program or plan is an
administrative act which is not subject to voter initiative or referendum."
If nothing else, the proposed ordinance implements "a general policy, program or plan", and thus
is administrative in nature and not the lawful subject of an initiative.
The Ordinance is Invalid. While the power of direct legislation is given to the voters,
"the electorate has no greater power to legislate than the municipality itself. A defective
ordinance cannot be cured by having it submitted to and approved by the electorate."
McQuillin Mun Corp Section 16.49. "The public does not have a right to obtain a vote to enact
invalid legislation." McQuillin Mun Corp Section 16.55. The Michigan Gaming Control and
Revenue Act does not allow a casino in the City of Muskegon.
The Michigan Gaming Control and Revenue Act authorizes casino gaming to the extent that it is
conducted in accordance with that Act. The Act specifically excludes from coverage gambling
on Native American land and land held in trust by the United States for a federally recognized
Indian tribe on which gaming may be conducted pursuant to federal law. The proposed
ordinance does not contemplate that the casino would be on Native American land. Subject to a
number of conditions and approvals, a casino regulated by this Act may be 1ocated in a city that
meets all of the following:
I) Has a population of at least 800,000 at the time the license is issued;
2) Is located within I 00 miles of any other state or country in which gaming was
permitted on December 5, 1996; and
3) Had a majority of voters who expressed approval of casino gaming in the city.
MCL Section 432.202(1). The City of Muskegon does not meet the minimum population nor
have a majority of voters expressed approval of casino gaming in the City. State law prohibits
gaming in the City of Muskegon. The Supreme Court opined that:
if a city ordinance prohibits something which a state statue permits, or vice versa, there is
a conflict and the State law must prevail.
Builders Association v Detroit, 295 Mich 272, at 277 (1940).
G:\EOSI\FILES\00100\1055.001\LTR\AU3029.DOC
A. Zoning
The proposed ordinance attempts to amend the City of Muskegon Zoning Ordinance by
providing in which zoning district a casino may be located. In Kroash v Livonia, 388 Mich 737
(I 972), the Supreme Court held that the initiatory process may not be used to amend a zoning
ordinance when it held that:
the statute which confers upon the legislative body of the city the power to enact zoning
laws proscribes the method by which they are to be adopted and amended ...
****
Indeed, this Court has consistently held that the procedures outlined in the zoning-
enabling act must be strictly adhered to.
Therefore, the amendment to the ordinance, having been enacted by a procedure different
from and contrary to the procedure required by the zoning-enabling act, is invalid.
Kroash, at 745-6. Further, the Supreme Court in West, at 469, held that:
the original passage of comprehensive plans and zoning ordinances is a legislative
function since these actions are classified as general policy decisions which apply to the
entire community. However, a zoning amendment may be differentiated on the basis that
such a determination is narrowly confined to a particular piece of property and the use
will generally affect only a small number of people, thus approximating an administrative
exercise.
B. Conflict With Charter
The second paragraph of proposed Section 11 appears to control future City Commission action
and, as such, is invalid. The ordinance proposes that:
If gaming in Muskegon becomes permissible under state law but this Ordinance does not
satisfy all of the requirements of that law, the necessary supplemental provisions to this
Ordinance are hereby approved and may be added to this Ordinance.
This section appears to permit and, perhaps require, the City Commission to adopt amendments
to the proposed ordinance if necessary to implement state law or to bring this proposed ordinance
into compliance with state law. However, such a provision is flawed in two respects. First, if the
proposed ordinance is approved by the electorate, the City Commission lacks the legal ability to
amend or repeal the proposed ordinance for five years.
No ordinance which has been adopted by the vote of the electors shall be repealed or
amended within five years except by vote of the electors.
Muskegon City Charter, Chapter VII, Section 13. A municipality's ordinance which conflicts
with its city charter is void. Theisen v Dearborn City Council, 320 Mich 446 (1948). In Theisen,
the Supreme Court had before it a conflict between an ordinance adopted by an initiatory
process, which appeared to give to the Dearborn Retirement Board of Trustees the ability to
decide the amount the City Council had to budget, and the Dearborn City Charter requirement
that budgeting is within the purview of the Mayor and City Council. The Supreme Court,
quoting the trial judge, held that:
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"Can an ordinance of the City of Dearborn have the effect of amending or repealing
express provisions of the charter? The answer, of course, is 'No,' as to ordinances
adopted by the council in the ordinary way. This ordinance was adopted under the
initiative and under the city charter such an ordinance can be amended only by initiative.
It is binding mandatorily upon the members of the council. I am of the opinion that the
power of initiative is not unlimited. There are two ways in which it can be exercised. It
can be exercised by way of adopting amendments to the city charter. Such amendments
do, of course, have the effect of changing the city charter. Or, it can be exercised by way
of adoption of ordinances as this ordinance was adopted.
"I think common sense dictates that under these circumstances an initiated ordinance
cannot be so broad as to change the intent and meaning of the city charter. It is adopted
under the city charter and not as an indirect amendment of it.
Theisen, at 453. Like the ordinance in Theisen, this proposed ordinance attempts to change the
Muskegon City Charter relative to amending this initiatory ordinance within the first five years,
if it is adopted by the electorate, and as such is invalid.
Second, to the extent that this section attempts to require future city commission action, by way
of amending the proposed ordinance, it is invalid. A city commission may not require future city
commissions to adopt or amend an ordinance.
C. Contingent Adoption
As articulated above, the City may not adopt an ordinance that is invalid at the time of adoption.
While Section 11 of the proposed ordinance appears to make this proposed ordinance contingent
on a change in state law, I can find no Michigan statute or case law that allows a Home Rule City
to adopt an ordinance the implementation of which is contingent on a change in state law.
Further, the proposed ordinance provides that it shall take effect IO days after adoption by the
City Commission or majority vote of the electors pursuant to Section 12-6. Pursuant to Section 7
of the proposed ordinance, the City is to receive proposals from qualified developers within 90
days after the electorate's adoption of the ordinance, select a qualified developer within 150 days
after the electorate's adoption the ordinance, and enter into a development agreement within 210
days after the electorate's adoption of the ordinance. As the proposed ordinance is drafted, those
duties imposed upon the City are not contingent upon a change in state law, and require the City
Commission to expend substantial staff time and effort and public resources in pursuit of a
currently illegal activity, and, as such, are illegal and void.
Therefore, it is my opinion the petition should not be certified to the City Commission for
procedures under the initiative provisions of the City Charter for any and all of the reasons cited.
G:\EDSI\FILES\00100\1055.001\lTR\A.U3029.DOC
As presented, the proposed ordinance is not a proper subject of an initiatory petition, and would
be invalid if adopted by the City Commission or electorate.
John C. Schrier
Direct: 231.722.5401
Fax: 231. 728.2206
E-Mail Address: jcs@parmenterlaw.com
· JCS
Enclosure
c: Bryon Mazade
Gail A. Kundinger, MMC
G:\EDSI\FILES\00100\1055.001\LTR\AU3029. DOC
Class III Gaming in
b. to establish certain parameters
Muskegon for the nonprofit corporation that will
Initiative Ordinance own the casino and casino complex;
c. develop a selection process
"The City of Muskegon Ordains that a that conforms to all applicable laws and
new Chapter of the Code of Ordinances, procedures of the State of Michigan;
City of Muskegon, is hereby created to
read as follows: d. provide a fair, objective,
timely and comprehensive process that
Short Title: The following ordinance will lead to the selection of the
may be referred to as: The Gaming developer/manager best able to meet the
Ordinance. intent of this ordinance;
Sec. 1. Purpose e. enhance, expand and stabilize
employment within the City of
The purpose of this ordinance is: Muskegon; and
a. to authorize one casino and f. develop economic
casino complex to be owned by a opportunities in Muskegon's downtown
nonprofit corporation established for that that will expand the entertainment,
purpose, all in accordance with the recreational and services sectors of the
Michigan Gaming Control and Revenue local economy.
Act, Public Act 69 of 1997, MCL
432.201, et seq. and the provisions of Sec. 3. Authorization of a Casino
this ordinance;
The operation of one casino
b. to establish a competitive within a casino complex as defined by
selection process to determine the the Michigan Gaming Control and
developer/manager that will operate the Revenue Act, including all approved
casino and casino complex development gambling games is hereby authorized
under the ownership of the nonprofit and approved.
corporation and establish certain terms
of a development agreement between Sec. 4. Ownership of Casino
that corporation and the City; and
The casino and casino complex
c. to establish other terms and shall be owned by a Michigan nonprofit
conditions of such an enterprise. corporation (herein, the "Corporation");
provided, however, that all management
Sec. 2. Intent decisions relating to the actual
operations of the casino and casino
The intent of this ordinance is to: complex shall be strictly and solely
under the purview of the
a. authorize the operation of one manager/developer.
casino and casino com:plex within the
City of Muskegon;
1
Sec. 5. Owneflihip Structure consecutive terms. Any vacancy on the
Corporation's Board of Directors shall
The Corporation shall be be filled in accordance with the
established under and operate in following procedures: the Corporation's
accordance with the laws of the State of remaining Directors shall, by majority
Michigan governing nonprofit vote, name one or more tax exempt
corporations. The Corporation shall be nonprofit corporations to designate the
incorporated within 90 days after the persons to fill any vacancy on the
adoption of this ordinance and shall be Corporation's Board of Directors. In the
organized with five persons on the event the remaining Directors are unable
Corporation's Board of Directors. The or fail to name such nonprofit
Directors of the Corporation shall be organizations, the chief judge of the
designated by the boards of directors or Muskegon County Circuit Court shall, in
members of Michigan nonprofit accordance with the foregoing
corporations that are exempt from procedures described in this section,
federal income taxation under sections name the nonprofit organizations which
50l(c)(3) and/or 50l(c)(4) of the organizations so named shall designate
Internal Revenue Code of 1986, as the Director(s) to fill the vacancy(s).
amended (the "IRC"). The chief judge
of the Muskegon County Circuit Court, Sec. 6. Distribution of Profits
in his or her non-judicial capacity, shall
name five tax exempt nonprofit The Corporation's net profits
corporations to make those director from the operation of the casino and
designations; two of which should casino complex after the payment of all
represent Muskegon based organizations fees, taxes, costs and expenses of the
and two of which should represent operation of the casino and casino
statewide environmental/conservation complex, including capital costs and the
organizations. Any tax-exempt nonprofit manger/developer fee, shall be
organization so named by such chief distributed by the Corporation only to
judge shall have 30 days to designate a organizations that are exempt from
director. In the event any organization federal income taxation under !RC
named by such chief judge declines or Sections 50l(c)(3) and/or 50l(c)(4). In
fails to designate a director within 30 no event shall administrative costs of the
days of its being named by the chief Corporation exceed I 0% of its gross
judge, the chief judge of the Muskegon profits. The distributions by the
County Circuit Court shall appoint other Corporation to organizations exempt
tax exempt nonprofit organizations to from taxation under IRC Section
make such director designations. All 50l(c)(3) and/or Section 50I(c)(4) shall
director designations made pursuant to occur not less frequently than
this ordinance shall be in writing. semiannually.
Directors shall not be compensated for
service on the Corporation's Board of
Directors but may be reimbursed all
actual expenses associated with such
service. Directors shall serve three-year
terms and may serve no more than three
2
Sec. 7. Schedule for Selection of phase with no public financial
Developer/Manager participation;
7-1. Within 90 days after the c. a concept plan that is creative
electorate's adoption of this ordinance, and compatible with the City's culture,
the City of Muskegon shall receive existing development plans,
proposals from qualified infrastructure and other features and
developers/managers that meet the attractions;
minimum requirements of this ordinance
(see section 8). d. a concept plan that promotes
other economic development
7-2. Within 150 days after the opportunities, including both direct and
electorate's adoption of this ordinance, ind ire ct employment, tourism and
the City of Muskegon shall select from redevelopment;
among the qualified
developers/managers that e. a social plan that identifies the
developer/manager judged by the City developer/manager's plan to deal with
Commission to be best able to construct the social impacts of gambling that
and operate the casino and casino includes criminal impacts and
complex in the public interest. compulsive gamblers; and
7-3. Within 210 days after the £ demonstration of the
electorate's adoption of this ordinance, applicant's ability to meet all of the
the City of Muskegon shall enter into a requirements of the Michigan Gaming
Development Agreement with the Control and Revenue Act.
Corporation and the selected developer
to implement the purpose and intent of Sec. 9. Selection Criteria
this ordinance.
Proposals submitted by qualified
Sec. 8. Minimum Qualifications of developers/managers shall be
Developer/Manager competitively evaluated and a selection
made by the City Commission based on
The minimum requirements for a the following criteria:
qualified developer/manager shall
include: a. the applicant's demonstrated
character, reputation, experience and
a background and experience, financial capability to operate a casino
including the organization, expertise and and casino complex in the public
knowledge gained from the successful interest;
operation of other casinos or casino
complexes; b. the scope of the proposal
including the motel, retail,
b. financial strength, including entertainment, recreation, convention
the demonstration of sufficient capital to and gaming components of the
undertake the development of the entire development;
casino complex in a single construction
3
c. the applicant's ability to meet I 0-4. The Development
all of the commitments included in the Agreement shall include fees and
proposal in a single construction phase; charges such that the City is reimbursed
all costs without limitation for the
d. the development's overall review, selection and ongoing
impact on the community, including the monitoring of the developer, including
development's ability to leverage other costs of consultants retained by the City
economic and social benefits and to assist in the review, selection and
mitigate the negative impacts of monitoring of the developer. This may
gambling; be accomplished in. part by charging a
filing fee with the submission of
e. the developers commitment to proposals.
the goal of hiring Muskegon residents
and implementing equal opportunity 10-5. The Development
employment practices; Agreement shall specify the
developer/manager's payment as a
f. the developers commitment to percent of the net annual profit· derived
the goal of using Muskegon based from the operation of the casino and
contractors and subcontractors in all casino complex. Under no circumstance
aspects of the project from initial shall that percentage exceed 40 percent ·
planning through actual operations. of the net annual profit. In addition to
said payment, the developer/manager
Sec. 10. Development Agreement shall be entitled to the return of all
Required capital invested in actual construction of
the casino and casino complex over a
I 0- I. The Development term to be negotiated, which term shall
Agreement shall include such terms and not exceed ten years.
conditions deemed necessary, reasonable
and prudent by the City Commission to I 0-6. The Development
implement the purpose and intent of this Agreement shall not create a right or
ordinance. entitlement for the Corporation or the
selected developer/manager io any
10-2. The Development required gaming license or permit or
Agreement shall insure that the City of approval otherwise required by law to
Muskegon incurs no costs related to the construct and/or operate the casino or
construction, operation and maintenance casino complex. The Development
of the casino and casino complex, Agreement shall not be sold or
including infrastructure costs. transferred without the express approval
of the City Commission.
10-3. The Development
Agreement shall insure that all public
safety costs incurred as a result of the
casino and casino complex by the City,
County and other affected public safety
organiz.ations are reimbursed on an
ongoing basis.
4
Sec. 1I. State Approval Required with preferential property tax treatment
including a Renaissance Zone or similar
It is acknowledged that zone.
implementation of this ordinance
requires the State of Michigan's 12-3. The City and the
approval with the amendment of certain Corporation to be established shall
state statutes by the legislature or by undertake such actions and enter into
initiative. The City of Muskegon shall such agreements as are necessary to
not use any general or special funds of implement the terms and conditions of
the City in an effort to accomplish those this ordinance consistent with state law
necessary statutory amendments. and the specific provisions herein.
Amounts expended in this effort by the
developer/manager shall not be I 2-4. Unless contrary to the
reimbursed under the terms of the context in which they are used, terms
Development Agreement. used in the text of this ordinance shall be
defined in accordance with the Michigan
If gaming in Muskegon becomes Gaming Control and Revenue Act.
permissible under state law but this Once authorized by the State of
Ordinance does not satisfy all of the Michigan, the intent of this ordinance is
requirements of that law, the necessary to operate the casino and casino complex
supplemental prov1S1ons to this under the tenns of that Act.
Ordinance are hereby approved and may
be added to this Ordinance. 12-5. The City Commission shall
establish by ordinance such advisory
Sec. 12. General Provisions bodies, rules and regulations, as it deems
reasonable and prudent to assist in the
12-1. The City shall not use its administration of this ordinance and the
power of eminent domain and casino and casino complex.
condemnation shall not be used to
assemble a parcel of land for the casino 12-6. This ordinance shall take
or casino complex. effect IO days after its adoption by the
City Commission or by a majority of the
12-2. The casino and casino electors voting thereon at a special
complex shall be located within the election called for that purpose."
boundaries of the City of Muskegon
Downtown Development District as they
existed on July I, 2002 on a parcel of
contiguous land area at least 20 gross
acres in size. The casino and casino
complex shall be located in the B-3
Central Business District or the WM
Waterfront Marine District, as they
existed on July I, 2002. The casino and
casino complex shall not be located
within any Zone that would provide the
owner of the casino and casino complex
5
PARMENTER O'TOOLE
Atlorneys 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
March 20, 2003
Mayor and City Commission
c/o City Manager
City of Muskegon
933 Terrace Street
Muskegon, Michigan 49442
Re: Initiatory Petition: Casino Development Competitive Selection Process
Dear Mayor and Commission:
The City Commission received initiatory petitions on March 11, 2003, which have been
forwarded to this office for review. The proposed ordinance is captioned "Casino Development
Competitive Selection Process." A copy of the proposed ordinance is attached for reference.
After legal review and checking signatures, it may or may not be submitted to the City
Commission for its determination under the Charter. As you know, the City Charter provides
that the City Commission, if the petition is legal and has sufficient signatures, may either adopt
the ordinance provision proposed or refuse to do so putting it out for a vote of the electors.
There is also a provision for the adoption of an amended ordinance in lieu of the initiated
ordinance.
1 have divided this opinion into two areas:
1) Whether the proposed ordinance is a proper subject of an initiatory petition; and
2) Whether the proposed ordinance is legal.
The Proposed Ordinance Is Not a Proper Subject of an Initiatory Petition. The proposed
ordinance concerns the following:
1) The selection process of a developer of a casino;
2) The criteria for reviewing proposals;
3) Eligibility of prospective developers;
G:\EOSI\FILES\00100\ 1055.001\LTR\AR5267 .DOC
4) The selection process; and
5) The contents of a development agreement.
The Home Rule Cities Act empowers the city to provide in its charter "initiative" on all matters
within the scope of the city's powers:
Each city may in its charter provide ... (6) for the initiative and referendum on all matters
within the scope of its powers and for the recall of all of its officials."
MCL §l 17.4(i); MSA §5.2082.
Muskegon's City Charter provides that a proposed ordinance may be submitted to the city
commission by petition, which proposed ordinance, in tum, may be adopted by the city
commission or may be submitted to the electorate for adoption, only if the content of the
ordinance is within the scope of the city's powers as set forth above in the Home Rules Cities
Act.
It is the established law of this state that, if the proposed initiatory ordinance is "administrative"
in nature and not "legislative" in nature, adoption of the proposed ordinance by initiative is not
within the city's powers, and, therefore, should not be submitted to the electorate. West v City of
Portage, 392 Mich 458,221 NW2d 303 (1974); Citizens Lobby of Port Huron, Michigan, Inc. v
Port Huron City Clerk, 132 Mich App 412,347 NW2d 473.
In my opinion the annexed ordinance is administrative in nature and not legislative in nature,
and, therefore, not within the city's powers to adopt by initiative.
Decisions as to whether to enter into a contract, or with whom, or the parameters of any such
contract dealing with the development in the city, are administrative decisions and must be left
for implementation by the city commission assisted by their administrative staff.· To enable the
electorate to dictate to the city commission by initiatory ordinance the terms and conditions of
any development agreement would clearly infringe upon the administrative functions of the city,
and would impair government.
Sustaining this opinion and, indeed, controlling it, is Citizens Lobby of Port Huron, Michigan,
Inc., Supra, a decision of our Court of Appeals holding as administrative in nature an initiatory
petition involving a proposed ordinance for development of waterfront property acquired by the
city and, thus, held to be outside the city's powers to adopt by initiative. The Court of Appeals
held at 421:
To permit the electorate to initiate piecemeal measures affecting land development is as
inconceivable to us as allowing the electorate to initiate ordinances affecting the fiscal
affairs of the city without regard to the budget or to the overall fiscal program. We
believe that the implementation by ordinance of a general policy, program or plan is an
administrative act which is not subject to voter initiative or referendum."
G:\EDSI\FILES\00100\1055.001\lTR\A.R5267 .DOC
The Ordinance is Not Legal. While the power of direct legislation is given to the voters,
"the electorate has no greater power to legislate than the municipality itself. A defective
ordinance cannot be cured by having it submitted to and approved by the electorate."
McQuillin Mun Corp Section 16.49. "The public does not have a right to obtain a vote to enact
invalid legislation." McQuillin Mun Corp Section 16.55. There are two problems with the
legality of the proposed ordinance. They are:
I) The proposed ordinance has been held unconstitutional by the Sixth Circuit Court
of Appeals; and
2) The Michigan Gaming Control and Revenue Act does not allow a casino in the
City of Muskegon.
The ordinance that is being proposed to the Muskegon City Commission is comparable to Detroit
City Code, §18-13, which has been the subject of litigation in Lac Vieux Desert Band of Lake
Superior Chippewa Indians v The Michigan Gaming Control Board, et. al., 276 F3d 876 (Sixth
Circuit, 2002). The Sixth Circuit Court of Appeals summarizes certain provisions of the Detroit
ordinance as follows:
The ordinance includes a "statement of intent" declaring that "it is in the best interest of
the City to provide a preference to those developers who took the initiative to facilitate
the development of casino gaming in the City of Detroit by proposing a casino gaming
proposal approved by the voters of the City, and who actively promoted and significantly
supported the State initiative authorizing gaming." Detroit City Code, section 18-13-l(i).
Another portion expressly prefers casino developers who, assuming they meet the other
eligibility criteria, were "initiator[s] of a casino gaming proposal which was approved by
the voters of this City prior to January I, 1995; and ... made significant contributions to
the development of gaming within the City by actively promoting and significantly
supporting a state initiative authorizing gaming." Detroit City Code Section I 8-13-
6(a)(2).
Lac Vieux, at 876. The ordinance proposed here, with the obvious variances having to do with
the name of the City and the dates, includes the same provision in Statement of Intent (Section
21-1 (i)) and Preference for Proponents of Gaming Proposals (Section 2 l-6(a)(2) and (3)). The
Sixth Circuit Court of Appeals held that
"Barring governments from endorsing or punishing political activity, or the lack of it, is
among the paramount functions of the First Amendment's Fee Speech Clause."
Lac Vieux, at 880. "Accordingly, the preference renders the ordinance invalid." Lac Vieux, at
880. The U.S. Supreme Court has declined to review the Sixth Circuit Court's decision. As
such, the ordinance being proposed has already been held unconstitutional and, if Muskegon
chose to adopt it, it would suffer the same fate.
In addition, the Michigan Gaming Control and Revenue Act authorizes casino gaming to the
extent that it is conducted in accordance to that Act. (The Act specifically excludes from
G:\EOSI\FILES\00100\1055.001\LTR\A.R5267.DOC
coverage gambling on Native American land and land held in trust by the United States for a
federally recognized Indian tribe on which gaming may be conducted pursuant to federal law.
The proposed ordinance does not appear to contemplate that the casino would be on Native
American land.) Subject to a number of conditions and approvals, a casino regulated by this Act
may be located in a city that meets all of the following:
I) Has a population of at least 800,000 at the time the license is issued;
2) Is located within 100 miles of any other state or country in which gaming was
permitted on December 5, 1996; and
3) Had a majority of voters who expressed approval of casino gaming in the city.
MCL Section 432.202(1). The City of Muskegon does not meet the minimum population nor
have a majority of voters expressed approval of casino gaming in the City.
Therefore, it is my opinion that the petition seeking to establish criteria for selection of a
developer and articulating the contents of a development agreement should not be certified to the
City Commission for procedures under the initiative provisions of the City Charter. As
presented, the proposed ordinance is not a proper subject of an initiatory petition, and would be
invalid if adopted by the City Commission or electorate.
Very truly yours,
Direct: 231.722.5401
Fax: 231. 728.2206
E-Mail Address: jcs@parmenterlaw.com
JCS
Enclosure
c:
/oJ~::
~/Mazade
Kundinger, MMC
G:\EDSI\FILES\00100\1055.001\LTR\AR5267 .DOC
CHAPTER XXI. CASINO DEVELOPMENT COMPETITIVE SELECTION PROCESS
Sec. 21-1. Statement of intent.
The city of Muskegon, through its Commission, finds that:
(a) The process of selecting developers of casinos must conform to all applicable laws and procedures
and must be independent, impartial and responsible to the people;
(b) It is committed to providing a fair, objective and comprehensive process to select the designated
developers who will be chosen to develop casinos in the city;
(c) Any proposed casino should contribute to the enhancement, expansion and stabilization of
employment within the City of Muskegon, including adherence to an equal opportunity employment plan as
defined herein, and should contribute to the enhancement, expansion and stabilization of the local
economy;
(d} It is in the best interest of the city to obtain the highest qualily proposals for the development of
casinos within the city;
(e) U is in the best interest of the city that any proposals to develop casinos should provide new
employment opportunities for Muskegon residents and serve as a catalyst for economic development in
the city;
(f) ft is in the best interest of the city that any proposals to develop casinos should provide for the
payment of necessary infrastructure improvements to facilitate the successful operation of casinos and to
minimize any negative impact of the development of casinos upon city residents;
(g) It is in the best interest of the city that any proposals to develop casinos should endeavor lo
showcase, stimulate and improve the use of existing and future tourism facilities in the city and improve
upon and increase the benefits of tourism;
(h) It is in the best interest of the city that any proposals to develop casinos should provide for the
development of a timely, orderly and efficient arrangement of transportation and public facilities and
services for Muskegon residenis and visitors to the city;
(i) In selecting developers of casinos, it is in the best interest of the city to provide a preference to those
developers who took the initiative to facilitate the development of casino gaming in the City of Muskegon
by proposing a casino gaming proposal approved by the voters of the City. and who actively promoted and
significantly supported Casino Gaming in Muskegon.
(j) !tis in the best interest of the City that any proposal to develop casinos will provide for a service fee
or fees to the City as approved by the Commission to assist the City in providing additional police, fire and
other City services to the complex and adjacent developments.
Sec. 21-2. Definitions.
Unless otherwise defined herein, words and phrases used in this chapter shall have the meaning ascribed
to them in the Michigan Gaming Control and Revenue Act, the Indian Gaming Regulatory Act, or
applicable Federal, State and local laws and regulations.
Casino means any premises wherein gaming is conducted and includes all buildings, improvements,
equipment and facilities used or maintained in connection with such gaming.
Casino complex means the casino and all buildings, restaurants, hotel structures, recreational or
entertainment facilities, restaurants or other dining facilities, bars and lounges, retail stores and other
amenities that are connected with, or operated in such an integral manner as to form a part of the same
operation whether on the same tract of land or otherwise.
Commission means the City Commission of the City of Muskegon
Company means a sole proprietorship, corporation, partnership, limited partnership, limited liability
company, trust, association, joint stock company, joint venture, tribal corporation or other form of business
organization. ·
Contractor means a person who provides goods, services, materials, equipment or supplies under a
contract with a developer, except that such term does not include the city.
Designated developer means a prospective dP.veloper that has be~n selected by the Commission to enter
into a development agreement with the city to develop and operate a casino or casino complex.
Muskegon resident business means any business, which employs at least fifty-one (51) percent
Muskegon residents. An individual employee wm be considered a Muskegon resident once the business
has presented proof of such individual's payment of the City of Muskegon Income Tax in the previous
taxable year, or proof that the individual is now subject to payment of Muskegon Income Tax due to
his/her residence in the City of Muskegon. Additionally, to qualify as a Muskegon resident business, the
firm er company must have at least four (4) employees.
Development agreement means a written agreement between the City and a designated developer that
defines the contractual obligations of the parties regarding the development and operation and/or
management of a casino or casino complex and other matters properly relating thereto.
Equal opportunity employment plan means a voluntary plan for the employment of women and minorities
in a casino and in the construction of a casino complex.
Improper contact means a written or oral communication relating to the merits or outcome of a decision
relating to a proposal or development agreement that is directed tq the mayor, any mayoral appointee, any
member of the City Commission, or any City employee or City Commission appointee or staff who has the
ability to influence decisions relating to the proposal o_r development agreement. The term does not
include a communication that is:
(1) An inquiry or request for information relating solely to the status of a decision on proposals
or the status of a development agreement so long as the inquiry or request for information is
directed to an individual authorized by the City Commission to respond to such inquiry or request
·d,1u :>u 1v118 d:> 111t;; u14uuy uui;s 110L c:1uure!;>S me rnems or outcome OT a dec1s1on;
(2) Testimony or statemenls by a designated developer at a public hearing convened for the
purpose of considering whether to approve a proposed development agreement;. or
(3} Made through the public media, such as statements in news interviews a.nd paid
advertisements.
Minority means that term as defined by the City of Muskegon.
Person means any company or a natural person.
Preference means a more favorable position given to one prospective developer over another in the
process established to select a designated developer
Proposal means the response to a request for proposal and all supplements and amendments thereto.
Prospective developer means a person that has submitted a proposal to develop, operate and/or manage
a casino or casino complex and enter into a development agreement with the City.
Request for proposal means those related documents as identified by the Commission and which are
furnished to prospective developers for the purpose of determining qualifications and soliciting a proposal
to develop a casino or casino complex and enter into a development agreement
Should means a strong recommendation but does not mandate the action described.
Subcontract means an agreement between a subcontractor and a contractor under which the
subcontractor will provide goods, services, materials, equipment, or supplies to a contractor.
Subcontractor means the person that has entered into a subcontract with a contractor.
Sec. 21-3. Request for proposals to enter into development agreements.
(a) The City Commission shall select the designated developers for the casinos or casino
complexes by means of a competitive request for proposals process, which process shall
prescribe the content of the request for proposals and the conduct of the process for evaluation
and selection of prospective developers for negotiation of development agreements. The
process should avoid restrictive specifications that might either unduly limit the number of
prospective developers or exclude those prospective developers entitled to a preference
pursuant to section 21~6 of this chapter from consideration.
(b) The Commission may seek review and comment from the City residents regarding the request
for proposals and any amendments to that request for proposals prior to their issuance.
(c) Without limiting the discretion of the Commission, the following broad criteria should be
considered by the Commlssion in reviewing proposals:
(1) Background and experience, which should include the organization, expertise and
experience of the prospective developer as well as the success of the prospective
developer's other casinos or casino complexes.
(2) Financial, which should include financing arrangements for the proposed casino or casino
complex, the financial strength of the prospective developer and the financial projections for
the proposed casino or casino complex.
(3) Concept, which should include innovative and creative design and compatibility with the
city's culture, features and other attractions
(4} Economic development, which should Include direct and indirect benefits to employment,
tourism and redevelopment in the city.
(5) Infrastructure improvements, which should include the prospective developer's plans for
addressing and improving the city's infrastructure related to the proposed casino or casino
complex.
(6) Socia/, which should include the prospective developer's plan for addressing social issues
associated with gaming, including compulsive gaming.
(7) Preference qualiii'calion, which shall apply to those prospective developers that are entitled
to a preference pursuant to section 21-6 of this chapter.
(8} Adjacent Development Concept, which should include the projected impact of the casino
development upon adjacent properties and the potential for connecting these properties
through appropriate transportation means, to provide synergy for other downtown
developments.
(9) Service Fees, which should include proposed fees to be paid to the City to provide for !he
health, welfare and safety services as negotiated between the developer and the City and
contained in the development agreement.
(d) The Commission shall advertise the availability of the request for proposals by publishing a
notice one or more times in the newspaper designated to print official business of the City and
may also advertise in other newspapers, gaming trade journals or other publications of general
circulation, and m.ay send notice to persons likely to be interested therein,
(e) The Commission or deslgnee may request additional information from the prospective
developers and invite all prospective developers to attend informal conferences concerning the
request for proposal process.
(f) The Commission or designee shall require that prospective developers pay specified fees in
order to compensate the City for Its costs of eV~lµating proposals, investigating prospective
deiJelopers and negotiating development agreements, which fees shall be deposited into a
designated City account. The Commission or designee may disqualify a prospective developer
from further evaluation of its proposal, or the negotiation of a development agreement if it does
not pay the specified fees.
(g) After the closing date for submission of prOposals, revisions or additional data may be solicited,
if the Commission or deslgnee deems it necessa·ry, only from those prospective developers that
submitted responses during the orlginal proposal stage. Such prospective developers witl"then
have the opportunity to modify or supplement their proposals on such items as the Commission
or designee may specify.
(h) All costs and expenses incurred by prospective developers relating to their proposals must be
borne by the prospective developers. The City is not liable to pay_ such costs an~ exp~nses or to
reimburse or to compensate prospective developers under any circumstances, mcludmg the
rejection of any or all proposals or the cancellation of a development agreement.
(i) The Commission or designee may conduct the proposal process in one or more phases.
Sec. 21-4. Eligibility of prospective developers.
(a) The Commission or designee may require information and assurances from a prospective developer
to demonstrate to the Commission's satisfaction that the prospective developer is eligible to enter
into a development agreement with the City.
(b) Without limiting the foregoing, a prospective developer is not eligible to enter into a development
agreement with the City if:
(1) It does not demonstrate to the satisfaction of the Commission that it has the character, reputation,
experience and financial capability to operate a casino or casino complex in the public interest;
(2) It does not submit to the City a consent in the form required by the Commission, for itself and
each of its officers, directors and owners, to allow the City to evaluate the personal and
professional integrity and the professional capabilities of each ind'1vidual or any other matters
deemed relevant by the Commission. Further, it shall submit to the City a release in the form
required by the Commission, which shall absolve the City, its agents, or employees from liability
for seeking information about the prospective developer from third parties. Such release shall also
absolve the third parties from liability for providing such information; and,
(3) It or any of its employees, agerits, contractors or representatives directly or indirectly, knowingly
makes an improper cont~ct. For purposes of this subs-dCtion, there shall be a presumption that
any such contact was made with the knowledge of its content and purpose: this presumption may
be rebutted by the prospective or designated developer.
a. Nothing in this section shall prohibit the Commission or designee from contacting a
prospective developer to seek clarification of a proposal, preclude the prospective developer
from responding to such contact, preclude direct negotiations of development agreements
between the designated developer and its representatives and the Commission or designee
and their representatives, preclude the City Commission or its representatives from contacting
a designated developer to seek clarification of a proposed development agreement, or
preclude the designated developer from responding to such contact. With the exception of
those persons designated by the City Commission to make inquiries or to respond to inquiries
from prospective or designated developers, all such contacts must be either in writing or
recorded in writing within forty.eight (48) hours of the contact.
b. The City Commission may designate one or more persons to respond to inquiries from
prospective or designated developers or to make inquiries on behalf of the Commission.
Any person so designated shall be named on a list made available to each prospective or
designated developer and to the public. Each such person may, as they deem
appropriate, keep a written record of any contact and shall make such record available to
the Commission upon request.
c. A determination by the City Commission that a developer is eligible to enter into a
development agreement does not constitute a finding that the developer has been or will
be selected to enter into a development agreement, that the City Commission will approve
a proposed development agreement, or that the prospective developer will be issued any
necessary gaming licenses.
Sec. 21-5. Use of a competitive selection process.
The City shall use a competitive selection process to enter into development agreements with designated
developers whose proposals are determined in accordance with this chapter to be in the best interest of
the City. The development agreement negotiated by the Commission or designee with designated
developers shall be submitted to the City Commission for approval.
Sec. 21-6. Preference for proponents of gaming proposals.
(a) In considering proposals and in selecting a prospective developer with whom the Commission or
designee will negotiate a development agreement, a prospective developer is entitled to a
preference if:
(1) fls proposal meets the criteria estatii!ished by this chapter and tiY the request for propos'als
(2) It was the initiator of a casino gaming proposal which was approved by the voters of this City;
and
{3) It made significant contributions to the development of gaming within the city by actively
promoting and significantly supporting the proposal.
(b) Notwithstanding any other provision of this chapter, no more than one preference shall be awarded
to prospective developers who proposed City Ordinance No. 21, even if more than one prospective
developer claims entitlement to such preference.
Sec. 21-7. Negotiations to enter into development agreements.
(a) After applying any preference to those prospective developers entitled to a preference pursuant to
section 21·6 of this chapter, the Commission shall exercise it's discretion in selecting and entering
into negotiations with the prospective developers whose proposals are deemed by the Commission
to be in the best interest of the City. To assist the City Commisslon in its review and approval of
development agreements pursuant to section 21-8 of this chapter, if the Commission does not enter
.. :1v Q .......... , ... ., .. ,\all\ Q~l\,l<alll<;;llll nmt G IJIU;)~l,,U\ll;I \,11:;S\ltaVj-lC::I 1:.11111\ICI.I \U i:t 1,Jlt::Lt:11tm1..1:2 put~uanl lO
section 21-6 of this chapter, the Commission must stato In writing and with particularity the basis
upon which they determined that such proposal was not in the best interest of the City.
(b) The Commission or deslgnee may enter Into negotiations with other ellgible prospective developers
or may develop new requests for proposals in accordance with this chapter if:
(1) The Commission Is not able to enter into development agreements with the. designated
developers for any reason:
(2) The City Commission does not approve one or more of the development agreements
pursuant to section 21-8 of this chapter;
(3) The designated developer does not receive any necessary gaming license; or,
(4) The development agreeniElnt ts terminated for any reason.
Sec, 21-8. Approval of development agreements.
(a) The City Commission shall conduct a public hearing on any proposed development agreement and
determine whether it is in the best interest of the City to enter into the agreement. In determining
whether the proposed development agreement is in the best interest of the City, the City
Commission must be satisfied:
(1) That the Commission or designee considered the criteria of section 21~3(c) and applied the
preference to those developers entitled to such preference pursuant to section 21-6.
(2) That the factors identified in section 21-8(a)(3) of this chapter have been adequately ideritified
and considered by the designated developer in its proposal.
(3) That the development agreement adequately addresses at least !he following:
a. The organizational structure of the designated developer and its affiliates including
the names and backgrounds of all officers, directors and owners of the designated
developer and any person that controls the designated developer, except that if the
designated tleveloper 01· an affiliate Is i)Ublicty traded, only the names and
backgrounds of owners beneficially owning greater than five (5) percent of the
shares of the publicly traded corporation need be identified, including:
Whether and to what extent the officers, directors or sharehold~rs are a
(i)
minority and/or a Muskegon resident.
(Ii} Whether the designated developer or an affiliate holds a gaming license
and in which jurisdiction the license is held, and whether the designated
developer or an affiliate has ever been denied a gaming license or
withdrawn an application for a gaming license.
b. The designated developer's capabilities, experience and key personnel who will be
assigned to the casino or casino complex development, operation and/or
management.
c. Projected cost budgets for the financing, design, construction, furnishing and
equipping of the casino or casino complex, including costs of projected infrastructure
improvements and all material assumptions upon which they are based.
d. Projected balance sheets, income statements and cash flow statements of the
casino or casino complex for the first five (5) years of operations, using generally
accepted accounting principles, and all material assumptions upon which they are
based,
e. Existing and anticipated sources of financing for the casino or casino complex,
including pertinent details such as terms, rates, and security covenants, and the
developer's plan, if any, for utilization of MuskegonMbased minority-owned financial
institutions, including·, but not limited to, insurance companies, accounting firms,
financial advisers and banking institutions, in servicing the developer's financial
needs.
f. Current detailed financial statements for each gaming operation currently owned or
operated by the designated developer.
g. The designated dev~loper's concept for the proposed casino or casino complex,
including:
(i) The proposed development site or location for the casino or casino
complex, a legal description of the property boundaries, dimensions
and total acreage for the casino or casino complex, as well as any
ancillary facilities proposed.
(ii) The size of the casino or casino complex; the number and types of
gaming facilities; the number and types of restaurants; a description of
any hotel, including the number of rooms and whether such hotel will be
available for use by non-casino patrons; the number and types of lounges
or bars: the number and types of retail shops; the number and types of
ancillary entertainment or recreational facilities planned: a description of
any convention facilities; and a description of any other facilities
proposed.
(iii) Architectural matters, including drawings, the name(s) of the architect(s);
the floor plans (discussing space allocations and major functions such as
gaming floor, back-of-house, circulat!on, accessibility and exiting);
building elevations (showing heights, relative scale and compatibility with
adjacent components); landscaping; and design theme.
(iv) Proposed plans for employee, patron and bus parking; tour bus and valet
drop-off facilities; service vehicle parking; satellite parking facilities; and
other infrastructure related to the casino or casino complex.
(v) The propos13d phasing plan, the proposed sequence of the phases and
the approximate dates of beginning and completion of development of
the entlre project.
(vi) The designated develope(s commitment to adhere to applicable zoning
requirements adopted by the city.
i. The designated developer's plans for assisting current businesses that may
experience employee shortages due to their employees accepting employment with
the casino.
appropriate for its prospective employees and their affected families and f~r patrons with
compulsive gaming behaviors and their affected families. The plan should include the types
of public education and problem gambling prevention strategies and prevention and
education strategies for employees that would be implemented as part-of the operation of
the casino or casino complex, the estimated period of implementation of the plan and the
approximate cost of the plan.
bb. The designated developer's plan to ensure that people under the age of twenty-one (21)
years will be identified and prohibited from gambling or loitering in the_ cas}no. .
ac. Any plans the designated developer has for opening a temporary casmo, including the
developer's plans as they pertain to the temporary casino with respect to alt the subject
areas prescribed at subparts a. --bb. of this section, and a warranty that any proposed
temporary casino will not adversely impact the viability of the planned permanent casino or
casino complex.
(b) The City Commission will not approve any proposed development agreement unless:
(1) It has been entered into pursuant to the provisions of this chapter and the City Commission
has determined that the proposed development agreement is in the best interest of the City;
(2) All proposals were made available for review and inspection by the City Commission;
(3) The designated developer has filed with the City Clerk its unconditional acceptance of all the
terms of the development agreement;
(4) The City has made a preliminary determination that the designated developer has satisfied its
burden of establishing to the City's satisfaction that
a. It ls of good character, honesty and integrity;
b. It is a person whose prior activities, criminal record, if any, reputation, habits and
associations do not pose a threat to the public interest or this State, the City, or the
effective regulation and control of gaming, nor does it CMate the dangers of unsuitable,
unfair o~ i110gal p;actices ir, tr.~ coridt:l't r·f pmins.
c. It has adequate business probity, competence and experience, in gaming and g~nerally;
and,
d. That the proposed financing of the entire operation is adequate for \he nature of the
proposed operation and from a suitable source.
{5) The development agreement requires the designated developer to reimburse the City for all
expenses incurred for consultants and outside attorneys in conjunction with the casino
development competitive selection process and in conjunction with the establishment of a
casino regulatory scheme;
{6) The designated developer has submitted satisfactory bond or other security acceptable to
the City to ensure the payment and performance in full of all obligations accepted by the
designated developer in the development agreement or imposed by City Code with respect
to the permanent casino or casino complex and any temporary casino; and,
(7) The development agreement requires the designated developer to comply with all statutes,
ordinances and regulations governing casino gaming and requires the designated
developer lo receive all necessary zoning approvals for the casino or casino complex;
Sec. 21-9. Limited effect of development agreement.
The approval of a development agreement does not create a right or entitlement in the designated
developer to any required gaming licenses or to permits or approvals otherwise required to construct and
operate the casino or casino complex. However, upon approval of the development agreement, the
selected developer will be given the full support of the City in the acquisition of the necessary licenses,
compacts and permits from the governing entities.
Sec. 21-10. Prohibitions upon assignment of development agreement.
A development agreement may not be sold Or transferred in any manner, nor may any party other than the
designated developer operate a casino or casino complex pursuant to the development agreement,
unless the City Commission give their consent to the sale or transfer.
Sec. 21-11. No 9ffect 011 other la1.•:s.
Irrespective of the terms of any development agreement entered into by the City, the design, development,
construction, financing, operation and management of the casino must be in compliance with all
applicable statutes, regulations, and codes of all levels of government, and those regulations which may
be promulgated by the City in conformance with applicable State and Federal laws and regulations
including, but not limited to, appropriate taxes and service tees
j. The manner in which the casino or casino complex will enhance the city as a
desirable location for tourists, conventions, families and urban llfe and the manner in
which the casino or casino complex will encourage pedestrian linkages with other
business, economic and entertainment activities in the area in which the casino or
casino complex is to be located.
k. The amount of investment or other contributions the designated developer will make
to promote economic growth and_ contribute to the revitalization of economlcally
depressed areas of the city, other than the area In which the casino or casino
complex is to be located: to create new jobs and contribute to the support of existing
employment opportunities; and to attract new businesses, tourists and visitors to
those other areas.
l. The designated developer's plan to market the casino or casino complex and the
developel's intent to cooperate and consult with the City, the Muskegon County
Convention and Visitor's Bureau or other regional tourism and marketing
organizations to implement a comprehensive and uniform system of marketing the
City as an entertainment destination.
m. The key management and other staff for each functional area of operation broken
down by the number of full-time and part-time positions, and for each job
classification, its respective total estimated salaries and benefits.
n. The designated developer's proposed program for staff training and development and
staff relations.
o. The designated developer's proposed equal opportunity employment plan to recruit,
train and upgrade Muskegon residents, minorities and women for all employment
classifications. The equal opportunity employment plan should include:
How the designated developer will establish contacts in the City to foster an
interest in casino careers among Muskegon residents, minorities and women,
and publlci':.e :cmd mark~t the casino r.Jmp!ex employment opportunities.
ii Any proposed systematic training program to prepare Muskegon residents,
minorities and women with the life skills and the employment skills necessary for
responsible jobs within the casino or casino complex.
p. The designated developer's commitment to hire construction contractors who agree to include
In their construction contracts an express term that the rates, wages and fringe benefits to be
paid to each class of construction mechanics and each of thelr subcontractors shall be not
Jess than the rates, wages and fringe benefits prevailing in the city as established by the most
recent survey of the Michigan Department of Labor for prevailing wage determination under
Act 166, P.A. 1965 (Act 166, P.A. 1965), MCLA 408.551 et. seq., MSA 17.256(A). e1. seq.
q. The designated developer's commitment to hire contractors who will commit to the goal of
maximizing to the greatest extent possible the number of Muskegon resident apprentices who
advance to journeymen status by agreeing themselves, and requiring their contractors to
agree to, and to the greatest extent possible utilizing unions that do or will, operate apprentice
programs on the casino or casino complex construction sites that are open to all residents of
the city.
r. The designated developer's commitment to hire contractors who agree to implement an equal
opportunity employment plan conforming to all applicable laws and consistent with the City's
Equal Employment Opportunity Plan.
s The designated developer's commitment to purchase goods and services from Muskegon
businesses to the greatest extent possible.
I. The proposed major transportation and circulation routes, including:
(i) A plan for the proposed use of regional airports, and specifically the Muskegon
County Airport;
(ii) A plan for the proposed modifications and improvements to the existing roads
necessary to accommodate the anticipated number of trips to and from the casino or
casino complex each day by employees, visitors and buses, including the size of regional
transportation facilities to be constructed or implemented, the estimated period of
construction, the approximate cost and the proposed funding source.
{iii) The designated developer's proposed plan for traffic control measures, such as
pedestrian.grade street crossing systems, traffic r.ontrol devicfls, bus and other large
vehicle turnout facilities, drainage mitigation and street iighting systems, the estimated
period of construction, approximate cost and the proposed funding source.
u. The designated developer's proposed measures for transportation demand management and
transportation supply management, Including ride-sharing, mass transit and other
transportatlon conservation measures, which should be based an the City's requirements
and the City's traffic analysis studies conducted in conjunction with casino development
within the City.
v. The designated developer's plan for any anticipated improvements to the existing regional
water facilities necessary to serve the casino or casino complex, the estimated period of
construction, approximate cost and the proposed funding source.
w. The designated developer's plan for any anticipated improvements to the existing regional
sewer facilities necessary to serve the casino or the casino complex, the estimated period
of construction, the approximate cost and the proposed funding source.
x. The designated developer's plan for proposed improvements to !he City's existing fire
protection services that would serve the casino or casino·coniplex, including the proposed
funding source.
y. The designated developer's plan for proposed improvements to the City's existing police
protection services that would serve the casino or casino complex, including the number of
police and the proposed funding source.
z. The designated developer's plan for providing for or enhancing existing child care services to
ensure that such services are reasonfi:j:)ly affordable and appropriate for its prospective
employees, including any estimated period of construction of such facilities, and the
approximate cost of such construction.
aa. The designated developer's plan for enhancing existing services for treatment of
compulsive behavior disorders to ensure that they are reasonably affordable and
INITIATION OF LEGISLATION
A,;,~on to add an ordinance to the City of Muskegon Code of Ordinances as provided in Chapter VII of the City Charter which: Authorizes and approves Casino Gaming in the Downtown
Area of the City of Muskegon to maximize economic impact, job creation, and promote private development and investment for the benefit of the City and its Citizens.
Vie, the undersigned qualified and registered electors, residents in the.City of Muskegon, in the County of Muskegon, State of Michigan, respectively petition for said initiation of legislation, and
request that the proposed ordinance be submitted to a vote of the people if not passed by the City Commission within 30 days.
WAR.:.''UNG - A person who knowingly signs this petition more than once, signs a name other than his or her own, signs when not a qualified and registered elector, or sets opposite his
or her signa!ure on a petition, a dat~ other th~?! the actual date the signature was affixed, is violating the provisions of the Michigan election law.
s1GNAJ-URE ,·
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PRINTED NAME I
sTREET ADbREss
OR~_hl_RALROUTE
POST orncE AND
ZIPCODE
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CERTIFICATE OF CIRCULATOR
circulat_or of :his petition, assert that I am qualified to circulate this peti,tion, that _each sig~ature on ~e
petition was signed m my presence; and that, to the best of my knowledge and belief, each signature 1s the gen~me ·
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signature of the person purporting to sign the petition, the person signing the petition was at the time ofsigniiig a
qualified registered elector of the city or tov..nship listed in the heading of the petition, and the elector was qualified
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WARNING - A circulator knowingly making a false statement in the above certificate, a .- flt .... ·e-J
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person not a circulator who signs as a circulator, or a person who signs a name other than ---'l(,;_/d..:._<_-f'--'JvJj"-"'-'--''f-~:...'l-'-'</-'f---m==-===--------------
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his or her own as circulator is guilty ofa misdemeanor.
RECEIVED
MAR 11 2003
City Clerks Off_ic,,
Commission Meeting Date: April 8, 2003
Date: April 2, 2003
To: Honorable Mayor and City Commissio11ers
From: Planning & Economic Development5\
RE: Authorize Funds for Imagine M ~
SUMMARY OF REQUEST:
Request authorization of a $6,000 budget allocation to be designated to the Imagine Muskegon
project and further act as the fiducimy for the project.
FINANCIAL IMPACT:
The total project cost is estimated at $20,000. Fund raising activities me in full swing with
several pending commitments.
BUDGET ACTION REQUIRED:
This allocation was authorized in the 2003 budget as an item in the Planning & Economic
development budget.
STAFF RECOMMENDATION:
Authorize the allocation and act as the fiducimy for the ad-hoc group.
4/2/2003
CITY OF MUSKEGON
RESOLUTION#2aa3-13 a)
RESOLUTION TO ALLOCATE FUNDS TO IMAGINE MUSKEGON
WHEREAS, the Imagine Muskegon Committee is comprised of local officials and interest groups
wanting to help develop a diverse and dynamic downtown; and
WHEREAS, the City of Muskegon, through recent Master Plan amendments, reinforced the
community's desire for design input in community development; and
WHEREAS, an allocation of $6,000 (six thousand dollars) was placed in the 2003 Planning Budget to
suppo1t additional community involvement in downtown development;
NOW, THEREFORE, BE IT RESOLVED that the City Cotmnission authorizes the spending of up to
$6,000 for Imagine Muskegon and agrees to act as the group's fiducimy for the duration of this
project.
Adopted this 8th day of April, 2003.
Ayes: 5
Nays: O
Absent:2
CERTIFICATE
I hereby ce1tify 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 April 8, 2003.
Gail Kundinger, MMC
Clerk, City ofl\.1uskegon
Date: April 8, 2002
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: First Quarter 2003 Budget Reforecast
SUMMARY OF REQUEST: At this time staff is transmitting the First Quarter 2003
Budget Reforecast which outlines proposed changes to the original budget that have come
about as result of changes in policy priorities, labor contracts, updated economic information,
or other factors. For the next meeting, an action item will be placed on the agenda for
adoption of the proposed first quarter budget reforecast together with any additional changes
deemed necessary by Commissioners.
FINANCIAL IMPACT: Staff is awaiting updated figures from the state. A budget
th
reforecast report will be presented at the April 7 Committee of the Whole meeting.
BUDGET ACTION REQUIRED: Self-explanatory.
STAFF RECOMMENDATION: The City Commission should review the Retorecast
to ensure it reflects their policy initiatives. At the next City Commission meeting, staff will
request formal approval of the Reforecast and related budget amendments.
COMMITTEE RECOMMENDATION: There is no committee recommendation at
this time.
9/18/97
CITY OF MUSKEGON
GENERAL FUND
HISTORICAL SUMMARY
_/2<V-MV.h
Revenues & Expenditures & Fund Balance - lj '/1, /J era ( r;.f-c,-{,_,)
Year Transfers In Transfers Out at Year•End
1992 $ 11,297,076 $ 11,282,444 $ 1,538,372 _ '(() rce. L e,'l<l.e.-
1993 13,990,266 13,231,208 2,297,430 - ln,-,fe~
1994 15,301,973 15,572,689 2,026,714 - /uh-0c_cu
1995 16,633,179 16,337,586 2,322,307
1996
1997
17,666,214
20,437,646
18,018,159
20,358,321
1,970,362
2,049,687
[~~<,, J
1998
1999
21,643,855
21,451,681
21,634,467
22,011,881
2,059,075
1,498,875
+g,i., JJJ
2000 23,685,516 22,232,657 2,951,734 - f;i rc-c C/,,ii
2001 23,446,611 23,235,978 3,162,367
2002 23,617,163 23,971,534 2,807,996 fr,:,~, 4, /o oil<-
Fiscal 2003 Budget Summary
FUND BALANCE AT START OF YEAR $
MEANS OF FINANCING:
Taxes 13,316,693 57.1%
Licenses and Permits 1,074,283 4.6%
Federal Grants 80,000 0.3%
State Grants 52,635 0.2%
State Shared Revenue 5,143,317 22.1%
Other Charges 2,004,063 8.6%
Interest & Rentals 295,600 1.3%
Fines and Fees 356,200 1.5%
Other Revenue 292,000 1.3%
Other Financing Sources 700,000 3.0%
23,314,791 100.0%
ESTIMATED REQUIREMENTS:
Customer Value Added Activities 17,457,166 73.0%
Business Value Added Activities 4,214,456 17.6%
Fixed Budget Items 2 252 006 9.4%
23,923,628 100.0%
ESTIMATED FUND BALANCE AT END OF YEAR ~ 2l22J~e
OPERATING SURPLUS (DEFICIT) $ (608,837) (/,\-
' ,. J Jc,))
~.. '
TARGET FUND BALANCE (10% PRIOR YEAR EXPENDITURES) $ 2,397,153
ESTIMATED EXCESS (SHORTFALL) vs, TARGET $ (197,995) +-z 3.1, (,J \"
1
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - General Fund
General Fund Revenue Summary By Source
% Change
Original Budget Actual Through Revised Estimate Change From From 2002
Actual 2001 Actual 2002 Estimate 2003 March 2003 2003 2002 Original Original
Available Fund Balance - BOY 2,951,734 $ 3,162,367 $ 2,744,079 $ 2,807,996 $ 2,807,996 $ 63,917
Taxes
City income tax $ 6,820,171 $ 6,692,609 $ 6,650,000 $ 1,612,816 $ 6,650,000 $ 0.00%
Property taxes - generai 3,940,343 4,221,258 4,281,332 4,281,332 0.00%
Property taxes - sanitation 1,670,955 1,788,871 1,833,822 1,833,822 0.00%
Property taxes - pass-through from LDFA II 270,337 120,000 120,000 0.00%
!ndustrial facilities taxes 353,742 388,718 341,539 341,539 0.00%
Payments in lieu of taxes 75,758 73,191 80,000 80,000 0.00%
Oellnguent chargeback collected 17,514 30,056 10,000 9,207 10,000 0.00%
$ 12,878,483 $ 13,465,040 $ 13,316,693 $ 1,622,023 $ 13,316,693 $ 0.00%
Licenses and permits
Business licenses $ 31,239 $ 31,525 $ 34,500 $ 725 $ 34,500 $ 0.00%
Liquor licenses 36,427 35,542 37,500 7,348 37,500 0.00%
Cable TV franchise fees 204,820 258,425 265,000 265,000 0.00%
"" T e!ecom franchise fees (Act 48) 27,483 27,483 0.00%
Housing licenses 66,126 64,565 75,000 21,595 75,000 0.00%
Rental property registration 1,990 4,000 4,000 0.00%
Burial permits 98,735 103,636 100,000 22,780 100,000 0.00%
Building permits 333,798 365,561 300,000 41,384 300,000 0.00%
Electrical permits 127,055 87,788 100,000 41,613 100,000 0.00%
Plumbing permits 48,863 66,741 50,000 17,818 50,000 0.00%
Heating permits 65,495 56,222 80,000 47,342 80,000 0.00%
Franchise fees 0.00%
Police gun registration 2.040 1,230 800 400 800 0.00%
$ 1,014,598 $ 1,071,235 $ 1,070,283 $ 202,995 $ 1,074,283 $ 4,000 0.37%
Federal grants
Federal 02:erational grant $ 417,925 $ 278,308 $ 80,000 $ 44,410 $ 80,000 $ 0.00%
$ 417,925 $ 278,308 $ 80,000 $ 44,410 $ 80,000 $ 0.00%
State grants
Act 302 police training grant $ $ $ 16,000 $ $ 16,000 $ 0.00%
State 02:erational grant 17,569 11,316 "36,635 1,101 36,635 0.00%
$ 17,569 $ 11,316 $ 52.635 $ 1,101 $ 52,635 $ 0.00%
State shared revenue
State sales tax $ 5,748,523 $ 5,353,987 $ 5,550,302 $ $ 5,143,317 $ {406,985) -7.33%
$ 5,748,523 $_ 5,353,987 $ 5,550,302 $ $ 5,143,317 $ {406,985) -7.33%
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - General Fund
General Fund Revenue Summary By Source
% Change
Original Budget Actual Through Revised Estimate Change From From 2002
Actua! 2001 Actual 2002 Estimate 2003 March 2003 2003 2002 Original Original
Other charges for sales and services
Tax administration fees $ 232,349 $ 258,323 $ 258,000 $ 9 $ 258,000 $ 0.00%
Utility administration fees 175,215 174,965 183,439 45,860 183,439 0.00%
Reimbursement for elections 20,534 24,455 12,000 186 12,000 0.00%
Indirect cost reimbursement 908,256 892,080 974,894 243,724 974,894 0.00%
Sile-plan review fee 895 1,086 1,000 1,000 0.00%
Sale of cemetery lots 25,275 14,988 18,000 3,750 18,000 0.00%
Sale of columbarium niches 0.00%
Police miscellaneous 48,873 74,044 65,000 12,786 65,000 0.00%
Police impound fees 37,781 51,225 40,000 15,000 40,000 0.00%
Landlord's alert fee 1,630 2,630 0.00%
Fire protection•state property 82,087 42,052 85,000 42,000 (43,000) .so.59%
Zoning fees 13,915 13,955 10,000 2,370 10,000 0.00%
Clerk fees 1,391 2,738 2,230 570 2,230 0.00%
Clerk • passport fees 3,500 90 3,500 0.00%
Tax abatement application fees 4,944 1,423 1,000 2,500 3,000 2,000 200.00%
Treasurer fees 33,708 40,635 25,000 1,908 25,000 0.00%
w False alarm fees 18,806 17,738 10,000 255 10,000 0.00%
Miscellaneous cemetery income 24,118 25,569 21,000 1,311 21.000 0.00%
Housing commission reimbursement 0.00%
Senior transit program fees 7,986 7,376 8,000 1,466 8,000 0.00%
Fire miscellaneous 9,012 3,858 15,000 241 15,000 0.00%
Sanitation stickers 42,355 51,081 42,000 10,497 42,000 0.00%
Lot cleanup fees 74,584 134,156 70,000 (1,968) 70,000 0.00%
Reimbursements for mowing and demofltions 75,099 129,421 70,000 19,944 70,000 0.00%
Recreation erogram fees 133,183 127,558 130,000 3,060 130,000 0.00%
$ 1.971,996 $ 2,091,356 $ 2,045,063 $ 363,559 $ 2,004,063 $ (41,000) ·2.00%
Interest and rental income
Interest $ 331.923 $ 181,931 $ 150,000 $ (19,387) $ 150,000 $ 0.00%
Flea market 22,157 27,526 27,000 27,000 0.00%
Farmers market 26,475 27,783 23,000 23,000 0.00%
City right of way rental 6,400 6,400 4,400 2,400 4,400 0.00%
Parking ramp rentals 22,069 24,991 5,000 1,920 5,000 0.00%
McGraft park rentals 53,758 37,697 54,000 54,000 0.00%
Otti~r eark rentals 28,081 26.232 32,200 8,168 32.200 0.00%
$ 490,863 $ 332,560 _!__ 295,600 _$_ (6,899) $ _ 295,6()0 $ 0.90%
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - General Fund
General Fund Revenue Summary By Source
% Change
Original Budget Actual Through Revised Estimate Change From From 2002
Actual 2001 Actual 2002 Estimate 2003 March 2003 2003 2002 Original Original
Fines and fees
Income tax ~ penalty and interest $ 95,916 $ 166,621 $ 90,000 $ 42,162 $ 90,000 $ 0.00%
Late fees on current taxes 27,220 18,006 25,000 25,000 0.00%
Interest on late invoices 730 569 1,200 16 1,200 0.00%
Property transfer affidavit fines 1,900 0.00%
Parking fines 74,056 61,957 80,000 30.490 80,000 0.00%
-~_gl!rt fines 150,735 146,141 160,000 29,387 160,000 0.00%
$ 350,557 $ 393,314 $ 356,200 $ 102,057 $ 356,200 $ 0.00%
Other revenue
Sa!e of land and assets $ $ $ 3,000 $ $ 3,000 $ 0.00%
Police sale and auction proceeds 3,706 3,089 4,000 4,000 0.00%
CDBG program reimbursements 322,587 372,492 250,000 4,704 250,000 0.00%
Contributions 33,592 31,619 11,000 300 11,000 0.00%
Muskegon County Community Foundation 13,521 7,000 8,000 8,000 1,000 14.29%
Miscellaneous reimbursements 1,000 1,000
.p,,. 0.00%
Miscellaneous and sundry 17,755 18,341 15,000 1,771 15,000 0.00%
$ 377,640 $ 439,062 $ 291,000 $ 14,775 $ 292,000 $ 1,000 0.34%
Other financing sources
Operating transfers in
Cemetery Perpetual Care $ 67,373 $ 56,961 $ 70,000 $ 21.860 $ 70,000 $ 0.00%
Criminal Forfeitures Fund 60,000 75,000 75,000 0.00%
Police Training Fund 31,142 22.281 0.00%
ODA for Administration 10,000 10,000 10,000 2,500 10,000 0.00%
Reese Playfield Fund 4.333 76,746 0.00%
RLF for Administration 5,000 5,000 5,000 1,250 5,000 0.00%
Budget Stabilization Fund 500,000 500,000 0.00%
Special Assessment Fund 40,000 40,000 0.00%
Hackley Park Improvement Fund
0.00%
Hack!e;,i:: Park Memorial Fund 609 9,997 0.00%
$ 178,457 $ 180,985 $ 700,000 s 25.610 $ 700,000 $ 0.00%
Total general fund revenues and
other sources $ 23,446,611 $ 23,617,163 $ 23,757,776 $ 2,369,631 $ 23,314,791 $ (442,965) ~1.86%
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - General Fund
General Fund Expenditure Summary By Function
Actual As % Change
Origiria! Budget Actual Through %of Revised Change From From 2002
Actual 2001 Actual 2002 Estimate 2003 March 2003 Revised Estimate 2003 2002 Original Revised
I. Customer Value Added Activities
40301 Police Department
5100 Salaries & Benefits $ 5,803,534 $ 5,848,623 $ 6,324,535 $ 1,330,067 21% $ 6,324,535 $ 0.00%
5200 Operating Supplies 154,660 148,091 150,000 23,228 15% 150,000 0.00%
5300 Contractual Services 951,902 981,682 902,000 175,134 19% 902,000 0.00%
5400 Other Expenses 54,675 73,558 28,000 1,342 5% 28,000 0.00%
5700 Capital Outlays 87,593 125,512 24,310 1.114 5% 24,310 0.00%
5900 Other Financin Uses NIA 0.00%
$ 7,052,364 $ 7177 466 $ 7.428.845 $ 1.530,885 21% $ 7.428 845 $ 0.00%
$ 7,052,364 $ 7,177,466 $ 7,428,845 $ 1,530,885 21% $ 7.428,845 $ 0.00%
50336 Fire Department
5100 Salaries & Benefits $ 2,930,180 $ 2,964,455 $ 2,947,103 $ 634,868 22% $ 2,947,103 $ 0.00%
5200 Operating Supplies 92,307 105,122 100,000 27,930 28% 100,000 0.00%
5300 Contractual Services 149,605 165,970 150,000 24,378 16% 150,000 0.00%
5400 Other Expenses 12,785 20,731 20,000 5,125 26% 20,000 0.00%
5700 capital Outlays 32,714 57,570 27,469 13,791 50% 27,469 0.00%
5900 Other Financin Uses NIA 0.00%
'-"
50387 Fire Safety Inspections
$ 3 217 591 $ 3 313 848 $ 3 244.572 $ 706 092 22% $ 3 244.572
' 0.00%
5100 Salaries & Benefrt:s $ 579,330 $ 693,916 $ 782,418 $ 168,617 22% $ 782,418 $ 0.00%
5200 Operating Supplies 25,077 22,393 25,500 3,636 14% 25,500 0.00%
5300 Contractual Services 232,848 266,610 260,606 24,579 9% 260,606 0.00%
5400 Other Expenses 8,109 11,903 10,000 3,247 32% 10,000 0.00%
5700 Capital Outlays 15,215 11,536 3,000 0% 3,000 0.00%
.!5.900 Other Financin uses NIA 0.00%
$ $ 1 006,358 $ 1 081 524 18% $ $
$
860,579
4,078 170 $ 4,320.206 $ 4 326,096 '
$
200 079
906,171 21% $
1,081 524
4 326,096 $
0.00%
0.00%
60523 General Sanitation
5100 Salaries & Benefits $ 67,901 $ 67,465 $ 78,067 $ 14,240 18% $ 78,067 $ 0.00%
5200 Operating Supplies 1,006 344 900 0% 900 0.00%
5300 Contractual Services 1,351,420 1,406,612 1,432,282 119,573 8% 1,432,282 0.00%
5400 Other Expenses 83 794 300 0% 300 0.00%
5700 Capital Outlays 24,847 44,725 25,660 0% 25,660 0.00%
5900 Other Financin Uses NIA 0.00%
$ 1 445 257 $ 1 519 940 $ 1,537 209 $ 133 813 9% $ 1 537,209 $ 0.00%
60528 Recycling
5100 Salaries & Benefits $ $ $ NIA $ $ 0.00%
5200 Operating Supplies NIA 0.00%
5300 Contractual Services 257,926 218,067 260,000 17,447 7% 260,000 0.00%
5400 Other Expenses NIA 0.00%
5700 Capital Outlays 3,305 1,500 0% 1,500 0.00%
5900 _Qj_b_er_Financing l,JSf?S NIA 0.00%
$ 261.231 $ 218.067 $ 261,500 $ 17 447 7% $ 251_:,;:oo $ 0.00%
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - General Fund
General Fund Expenditure Summary By Function
Actual As % Change
Original Budget Actual Through %of Revised .Change From From 2002
Actual 2001 Actual 2002 Estimate 2003 March 2003 Revised Estimate 2003 2002 Original Revised
60550 Stormwater Management
5100 Salaries & Benefits $ $ 7,372 $ 20,000 $ 0% $ 20,000 $ 0.00%
5200 Operating Supplies 4,450 0% 4,450 0.00%
5300 Contractual Services 16,352 28,000 0% 28,000 0.00%
5400 Other Expenses 600 0% 600 0.00%
5700 Capital Outlays 2,500 0% 2,500 0.00%
5900 Other Financin Uses NIA 0.00%
$ $ 23 724 $ 55.550 $ 0% $ 55 550 $ ___Q,_Q_O%
60448 Streetlighting
5100
5200
Salaries & Benefits
Operating Supplies
$ 11,387 $ 12,983 $
• 854 43% S
NIA
2,000 $ 2,000 0.00%
0.00%
5300 Contractual Services 504,551 505,079 515,000 85,700 17% 515,000 0.00%
5400 Other Expenses NIA 0.00%
5700 Capital Outlays 4,350 5,000 3,850 128% 3,000 (2,000) ~0.00%
5900 Other Financin Uses NIA 0.00%
$ 515,938 $ 522.412 $ 520,000 $ 90.404 17% $ 520 000 $ _0,00%
60707 Senior Citizen Transit
44,925 $ 44,863 47,833 8,423 18% $ 47,833 $ 0.00%
'
5100 Salaries & Benefits $ $
5200 Operating Supplies NIA 0.00%
5300 Contractual Services 7,100 10,140 7,540 1,560 21% 7,540 0.00%
CJ) 5400 Other Expenses NIA 0.00%
5700 Capital Outlays NIA 0.00%
5900 Other Financin Uses NIA 0.00%
$ 52,025 $ 55.003 $ 55,373 $ 9,983 18% $ 55,373 $ ---- 0.00%
60446 Community Event Support
5100 Salaries & Benefits $ 77,841 $ 31,192 $ 76,972 $ 2,208 3% $ 76,972 $ 0.00%
5200 Operating Supplies 1,971 1,524 2,000 0% 2,000 0.00%
5300 Contractual Services 31,071 11,004 15,000 138 1% 15.000 0.00%
5400 Other Expenses NIA 0.00%
5700 Gapital Outlays NIA 0.00%
5900 Other Financin Uses NIA 0.00%
$ 110 883 $ 43720 $ 93 972 $ 2,346 2% $ 93 972 $ 0.00%
$ 2 385,334 $ 2 382,866 $ 2,523 604 $ 253,993 10% $ 2,523.604 $
70751 Parks Maintenance
5100 Salaries & Benefits $ 470,749 $ 476,360 $ 552,349 $ s,.sss 17% $ 552,349 $ 0.00%
5200 Operating Supplies 240,998 150,285 180,000 4,861 3% 180,000 0.00%
5300 Contractual Services 596,720 601,199 500,000 47,055 9% 500,000 0.00%
5400 Other Expenses 2,905 2,548 2,000 0% 2,000 0.00%
5700 Capital Outlays 75,959 152,224 52,929 33,066 62% 52,929 0.00%
5900 Other Financin Uses NIA 0.00%
70757 Mc Graft Park Maintenance
5100 Salaries & Benefits
$
$
1 387,331
5,030
'
$
1 382,616
6,059
$
$
1,287.278
18.005
$
$
176,678
751
14% $
4% $
1 ?87 278
18.005
$
$
0.00%
0.00%
5200 Operating Supplies 4,918 4,135 4,031 504 13% 4,031 0.00%
5300 Contractual Services 42,488 30,762 24,000 5,688 24% 24,000 0.00%
5400 Other Expenses 238 56 200 0% 200 0.00%
5700 Capital Outlays 65 7,800 0% 7,800 0.00%
5900 Oth~financin Uses NIA 0.00%
$ 52,739 $ 41.012 $ 54 036 $ 6,943 13% $ 54 036 $ 0.00%
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter~ General Fund
General Fund Expenditure Summary By Function
Actual As % Change
Original Budget Actual Through %of Revised Change From From 2002
Actual 2001 Actual 2002 Estimate 2003 March 2003 Revised Estimate 2003 2002 Original Revised
70775 General & Inner City Recreation
5100 Salaries & Benefits $ 283,433 $ 281,055 $ 341,290 $ 35,331 10% $ 341,290 $ 0.00%
5200 Operating Supplies 51,416 58,590 55,386 13,234 24% 55,386 0.00%
5300 Contractual Services 135,564 137,912 97,823 10,182 10% 97,823 0.00%
5400 Other Expenses 9,252 10,375 4,350 1,682 39% 4,350 0.00%
5700 Capital Outlays 383 NIA 0.00%
si,.90 Other Financin Uses NIA 0.00%
$ 480 048 $ 487,932 $ 498.849 $ 60 429 12% _$_ _ 498 849 $ 0.00%
70276 Cemeteries Maintenance
5100 Salaries & Benefits $ 185,819 $ 188,401 $ 196,834 $ 46,567 24% $ 196,834 $ 0.00%
5200 Operating Supplies 21,908 22,607 20,000 980 5% 20,000 0.00%
5300 Contractual Services 263,671 258,681 255,000 9,568 4% 255,000 0.00%
5400 Other Expenses 1,199 1,121 1,000 175 18% 1,000 0.00%
5700 Capital Outlays 33,975 14,626 33,165 9,383 28% 33,165 0.00%
5900 Other Financin Uses NIA 0.00%
$ 506 572 $ 485,436 $ 505 999 $ 66 673 13% $ 505,999 $ _ _ 0.00%
70585 Parking Operations
5100 Salaries & Benefits $ 13,439 $ 14,831 $ 14,549 $ 6,092 42% $ 14,549 $ 0.00%
5200 Operating Supplies 2,476 1,032 3,000 649 22% 3,000 0.00%
5300 Contractual Services 32,854 40,972 28,802 12,590 44% 28,802 0.00%
---J 5400 Other Expenses NIA 0.00%
5700 Capital Outlays 4,503 NIA 0.00%
5900 Other Financin Uses NIA 0.00%
$ 48,769 $ 61 338 $ 46,351 $ 19,331 42% S 46,351 __$ _ -- 0.00%
70771 Forestry
5100 Salaries & Benefits $ 86,584 $ 84,297 $ 111,664 $ 33,881 30% $ 111,664 $ 0.00%
5200 Operating Supplies 9,831 6,024 7,800 95 1% 7,800 0.00%
5300 Contractual Services 14,244 13,864 17,000 9,065 53% 17,000 0,00%
5400 Other Expenses 1,309 394 1,500 596 40% 1,500 0.00%
5700 capital Outlays 2,101 2,844 4,359 0% 4,359 0.00%
5900 Other Financin Uses NIA 0.00%
$ 114,069 $ 107,423 $ 142,323 $ 43,637 31% $ 142,323 _$_ -- O._QQ¾
70863 Farmers• Market & Flea Market
5100 Salaries & Benefits $ 28,023 $ 29,241 $ 34,258 $ 3,387 10% $ 34,258 $ 0.00%
5200 Operating Supplies 860 1,644 1,000 0% 1,000 0.00%
5300 Contractual Services 19,175 14,292 7,230 743 10% 7,230 0.00%
5400 Other Expenses NIA 0.00%
5700 Capital Outlays NIA 0.00%
5900 Other Financin Uses NIA 0.00%
$ 48,058 $ 45,177 $ 42.488 $ 4,130 10% $ 42,488 $ 0.00%
$ 2,637,586 $ 2.610,934 $ 2,577,324 $ 377,821 15% $ 2.577 324 _$_ _ - - _ _ 0.00%
80799 Weed and Seed Program
5100 Salaries & Benefits $ $ $ $ NIA $ $ 0.00%
5200 Operating Supplies NIA 0.00%
5300 Contractual Services NIA 0.00%
5400 Other Expenses NIA 0.00%
5700 Capital Outlays NIA 0.00%
5~ _ _ Other F.!!)a~µses N/A 0.00%
_$_ $ $ $ __Jjf_A $ $ 0.00%
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - General Fund
General Fund Expenditure Summary By Function
Actual As % Change
Original Budget Actual Through %of Revised Change From From 2002
Actual 2001 Actual 2002 Estimate 2003 March 2003 Revised Estimate 2003 2002 Original Revised
80387 Environmental Services
5100 Salaries & Benefits $ 179,865 $ 173,926 $ 201,491 $ 39,582 20% $ 201,491 $ 0.00%
5200 Operating Supplies 9,023 12,389 11,000 1,619 15% 11,000 0.00%
5300 Contractual Services 244,510 300,582 194,806 17,922 9% 194,806 0.00%
5400 Other Expenses 1,633 1,505 2,000 88 4% 2,000 0.00%
5700 Capital Outlays 6,556 16,123 4,000 0% 4,000 0.00%
590Q_ __ Other Finan.£!!}9_\J§e_s_ N/A 0.00%
$ 441,587 $ 504,525 $ 413 297 $ 59,211 14% $ 413,297 $ 0.00%
$ 441 587 $ 504,525 $ 41-3,297 $ 59,211 14% $ 413,297 $ 0.00%
10875 Other - Contributions to Outside Agencies
Co
Muskegon Area Transit (MATS)
Neighborhood Association Grants
Muskegon Area First
' 80,163
34,063
$ 80,163
35,975
46,066
'
80,500
36,000
42,000
$ 20,041
23,145
10,500
' 80,500
36,000
42,000
0.00%
0.00%
0.00%
Veterans Memorial Day Costs 7,535 8,070 8,500 8,500 0.00%
WMSRDC - Muskegon Area Plan (MAP) 6,151 6,151 0.00%
Institute for Healing Racism 3,000 4,000 3,000 3,000 0.00%
MLK Diversity Program 1,000 1,000 0.00%
Muskegon Area labor Management (MALMC) 1,000 1,000 1,000 1,000 0.00%
Sister Cities· Youth Travel 1,000 0.00%
Muskegon County and Humane Society - Feral Cat Control 14,157 16,000 6,015 16,000 0.00%
Other
0.00%
Contributl~IJS.T.C> Outside Agencies $ 132 912 $ 195,582 $ 188,000 $ 59.701 32% $ 188.000 $ 0.00%
$ 132,912 $ 195,582 $ 188,000 $ 59 701 32% $ 188,000 $ 0.00%
Total Customer Value Added Activities $ 16,727,953 $ 17,191,579 $ 17,457,166 $ 3,187,782 18% $ 17,457,166 $ 0.00%
As a Percent of Total General Fund
Expenditures 72.0% 71.7% 73.2% 76.3% 73.0%
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - General Fund
General Fund Expenditure Summary By Function
Actual As % Change
Original Budget Actual Through % of Revised Change From From 2002
Actual 2001 Actual 2002 Estimate 20• 3 March 2003 Revised Estimate 2003 2002 Original Revised
II. Business Value Added Activities
10101 City Commission
5100 Salaries & Benefits $ 56,483 $ 60,555 $ 62,793 $ 12,450 20% $ 62,793 $ 0.00%
5200 Operating Suppnes 12,288 12,538 16,000 206 1% 16,000 0.00%
5300 Contractual Services 36,894 48,510 41,964 6,992 17% 41,964 0.00%
5400 Other Expenses 7,631 9,758 11,000 1,592 14% 11,000 0.00%
5700 Capital Outlays 528 NIA 0.00%
5900 Other Financin uses NIA 0.00%
$ 113,296 $ 131,889 $ 1:i1,757 $ 21 240 16% $ 131,757 $ __0.00%_
10102 City Promotions & Public Relations
5100 Salaries & Benefits $ $ $ s N/A $ $ 000%
5200 Operating Supplies 10,000 525 5% 10,000 0.00%
(D 5300 Contractual Services 24,563 26,499 35,572 4,664 13% 35,572 0.00%
5400 Other Expenses 8 NIA 0.00%
5700 Capital Outlays NIA 0.00%
5900 Other Financin uses NIA 0.00%
s 26,507 45,572 5,189 45,572 _$_ _ ___
O.Q.0°/4_
10172 City Manager
5100 Salaries & Benefrts $
24,563
168,180
'
$ 173,154
'
$ 189,451
$
$ 41,218
11% $
22% $ 189.451 $ 0.00%
5200 Operating Supplies 1,651 1,683 2,750 154 6% 2,750 0.00%
5300 Contractual Services 2,055 2,563 3,750 423 11% 3,750 0.00%
5400 Other Expenses 2,149 3,037 2,750 332 12% 2,750 0.00%
5700 Capita! Outlays 102 1,500 0% 1,500 0.00%
5900 Other Financin Uses NIA 0.00%
$ 174 035 $ 180 539 $ 200 201 $ 42.127 21% $ 200,201 $ 0.00°/4_
10145 City Attorney
5100 Salaries & Benefits $ $ $ $ NIA $ $ 0.00%
5200 Operating Supplies 833 869 1,000 0% 1,000 0.00%
5300 Contractual Services 457,739 449,721 423,201 66,535 16% 423,201 0.00%
5400 Other Expenses NIA 0.00%
5700 Capital Outlays NIA 0.00%
5900_ Otl}er Financ::i[lQ U ~ ____ NIA 0.00%
$ 458 572 s 450,590 $ 424 201 $ 66 535 16% $ 424 201 $ 0.00%
s _$_ _ _ _ _ :_ ___Qi)O%_
770466 $ 789 525 $ 801 731
' 135.091 17% S 801,731
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - General Fund
General Fund Expenditure Summary By Function
Actual As % Change
Original Budget Actual Through %of Revised Change From From 2002
Actual 2001 Actual 2002 Estimate 2003 March 2003 Revised Estimate 2003 2002 Original Revised
20173 Administration
5100 Salaries & Benefits $ 120,324 $ 129,504 $ 136,911 $ 32,416 24% $ 136,911 $ 0.00%
5200 Operating Supplies 1,784 2,050 2,500 32 1% 2,500 0.00%
5300 Contractual Services 15,734 16,255 20,973 510 2% 20,973 0.00%
5400 Other Expenses 7,230 5,415 8,000 893 11% 8,000 0.00%
5700 Capital Outlays 1,632 73 2,000 977 49% 2,000 0.00%
5900 Other Financin Uses NIA 0.00%
$ 146.704 $ 153,297 $ 170,384 $ 34.828 20% $ 170,384 $ 0.00%
20228 Affirmative Action
5100 Salaries & Benefits $ 72,256 $ 84,810 $ 92,465 $ 18,902 20% $ 92,465 s 0.00%
5200 Operating Supplies 1,713 757 2,672 78 3¾ 2,672 0.00%
5300 Contractual Services 1,759 1,356 1,872 97 5% 1,872 0.00%
5400 Other Expenses 2,913 4,187 4,803 119 2% 4,803 0.00%
5700 Capital Outlays 649 723 NIA 0.00%
5900 Other Financin Uses NIA 0.00%
79,290 $ 91 833 $ 101 812 101 812
~
0 20744 Julia Hackley Internships ' 8.885 7,000
$ 19.196 19% $
' 0.00%
5100
5200
5300
Salaries & Benefits
Operating Supplies
Contractual Services
$ 10,692 $
' 10
$ 0% $
0%
NIA
7,000
10
$ 0.00%
0.00%
0.00%
5400 Other Expenses 20 NIA 0.00%
5700 Capital Outlays NIA 0.00%
5900 Other Financin Uses NIA 0.00%
s 8,885 7,010
20215 City Clerk & Elections
5100 Salaries & Benefits $
10,712
208,602
$
$ 234,459
$
$ 245,398
$
$ 46,564
0% $
19% $
7,010
245,398
'
$
0.00%
0.00%
5200 Operating Supplies 35,327 45,977 20,300 3,090 15% 20,300 0.00%
5300 Contractual Services 31,458 62,596 41,000 4,116 10% 41,000 0.00%
5400 Other Expenses 7,136 5,437 3,000 300 10% 3,000 0.00%
5700 Capital Outlays 5,199 5,813 2,000 49 2% 2,000 0.00%
5900 Other Financin Uses NIA 0.00%
287,722 $ 354,282 s 311,698 $ 54,119 311,698
20220 Civil Service ' 17% $
' 0.00%
5100 Salaries & Benefits s 132,405 $ 160,513 $ 172,583 39,556 23% $ 172,583 0.00%
'
$
5200 Operating Supplies 17,111 15,396 10,950 1,760 16% 10,950 0.00%
5300 Contractual Services 22,799 22,138 23,200 4,460 19% 23,200 0.00%
5400 Other Expenses 12,336 9,108 6,000 10 0% 6,000 0.00%
5700 Capital outlays 8,600 1.129 1,278 0% 1,278 0.00%
S_gQ_O_ ______Qfil__er Financii:,g Uses NIA 0.00%
s 193,251 $ 208 284 s 214 011 45786 21% $ 214,011 s 0.00%
$ 717,679 $ 816,581 $ 804 915 '' 153,929 19% $ 804,915 $ 0.00"/o
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - General Fund
General Fund Expenditure Summary By Function
Actual As % Change
Original Budget Actual Through % of Revised Change From From 2002
Actual 2001 Actual 2002 Estimate 2003 March 2003 Revised Estimate 2003 2002 Original Revised
30202 Finance Administration
5100 Salaries & Benefits $ 267,254 $ 280,785 $ 300,307 $ 74,370 25% $ 300,307 $ 0.00%
5200 Operating Supplies 9,554 6,663 6,600 1,835 28% 6,600 0.00%
5300 Contractual Services 99,977 115,025 87,050 28,991 34% 86,450 (600) .Q.69%
5400 Other Expenses 2,348 3,935 2,538 161 6% 2,538 0.00%
5700 Capital Outlays 2,085 4,730 123 21% 600 600 0.00%
5900 Other Financin Uses NIA 0.00%
$ 381,218 $ 411 138 $ 396 495 $ 105 480 27% $ 396.495 $ 0.00%
30209 Assessing Services
s
5100
5200
5300
Salaries & Benefits
Operating Supplies
Contractual Services
$ 6,759
367,367
$ 6,093
390,926
' 7,620
398,051
$ 2,979
1,007
39% $
NIA
0%
7,620
398,051
0.00%
0,00%
0.00%
5400 Other Expenses 45 60 100 80 80% 100 0.00%
5700 Capita! Outlays NIA 0.00%
5900 Other Financin Uses NIA 0.00%
374,171 397,079
30205 Income Tax Administration
Salaries & Benefits
' $
194,487
' 405,771
'
4,066 1% $ 405,771 $ 0.00%
5100
5200
5300
Operating Supplies
Contractual Services
' 213,846
24,678
34,092
' 21,941
49,928
$ 227,024
24,800
40,263
'
48,439
4,018
6,150
21% $
16%
15%
227,024
24,800
40,263
' 0.00%
0.00%
0.00%
~
5400 Other Expenses 1,648 1,410 1,000 15 2% 1,000 0.00%
~
5700 Capital Outlays 206 5,807 2,000 100 5% 2,000 0.00%
5900 Other Financin Uses NIA 0.00%
274,470
30253 City Treasurer
5100 Salaries & Benefits
'
$ 236,759
$
$
273,573
272,839
's 295,087
295,645
$
$
58,722
64,422
20% $
22% $
____1~Q87_$_
295,645 $
____QJ)_Q%
0.00%
5200 Operating Supplies 35,489 32,865 32,232 8,177 25% 32,232 0.00%
5300 Contractual Services 49,210 43,750 33,500 8,200 24% 33,500 0.00%
5400 Other Expenses 900 2,933 1,500 1 0% 1,500 0.00%
5700 Capital Outlays 4,281 12,653 4,000 320 8% 4,000 0.00%
5900 Other Financin Uses NIA 0.00%
365,040 366,877 $
30248 Information Systems Administration ' 326.639
182,403
' 235,640
'$
$ 81,120 22% $ 366,877
s
0.00%
5100
5200
5300
Salaries & Benefits
Operating Supplies
Contractual Services
' 2,024
72,769
$
2,345
66,905
259,055
4,700
53.249
'
60,990
30
2,927
24% $
1%
5%
259,055
4,700
53,249
0.00%
0.00%
0,00¾
5400 Other Expenses 12,457 8,049 9,000 104 1% 9,000 0.00%
5700 Capital Outlays 53,828 37,893 26,497 8,401 32% 26,497 0.00%
59QO _Other Financing_JJses NIA 0,00%
$ 323 481 s 350,832 $ 352,501 $ 72 452 21% $ 352,501 $ 0.00%
s
60265 City Hall Maintenance
' 1,679 979 1 797,662
' 1,816,731
'
321,840 18% $ 1.816,731
' 0.00%
Salaries & Benefits 64,853 66,138 $ 65,153 15,651 65,153
5100
5200
5300
Operating Supplies
Contractual Services
$
12,457
214,595
' 15,693
203,498
14,850
190,000
$
2,820
33,682
24% $
19%
18%
14,850
190,000
$ 0.00%
0.00%
0.00%
5400 Other Expenses 598 500 0% 500 0,00%
5700 Capital Outlays 253 12,500 8,477 0% 8,477 0.00%
59_9_Q _ _Other FinaQ<;:in Uses NIA 0.00%
278,980 0.00%
''
292,756 297 829 278 980 52 153 19% $ $
$
$ 292,756 '
$ 297,829 278 980
$
$ 52,153 19% $ 278,980 $ 0.00%
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - General Fund
General Fund Expenditure Summary By Function
Actual As % Change
Original Budget Actual Through % of Revised Change From From 2002
Actual 2001 Actual 2002 Estimate 2003 March 2003 Revised Estimate 2003 2002 Original Revised
80400 Planning, Zoning and Economic Development
5100 Salaries & Benefits $ 387,005 $ 393,435 $ 437,835 $ 89,531 20% $ 437,835 $ 0.00%
5200 Operating Supplies 19,455 12,765 14,000 1,700 12% 14,000 0.00%
5300 Contractual Services 87,314 44,078 50,300 6,207 12% 50,300 0.00%
5400 Other Expenses 9,751 10,293 6,964 636 9% 6,964 0.00%
5700 capital Outlays 3,644 6,239 3,000 0% 3,000 0.00%
59Q_O_ Othe[_fjn_ancing Uses NIA 0.00%
$ 507,169 $ 466 810 $ 512,099 $ 98,074 19% $ 512.099 $ 0.00%
$ 507.169 s 466 810 $ 512 099 $ 98 074 19% $ 512 099 $ 0.00%
Total Business Value Added Activities $ 3,968,049 $ 4,168,407 $ 4,214,456 $ 761,087 18% $ 4,214,456 $ 0.00%
As a Percent of Total General Fund
Expenditures 17.1% 17.4% 17.7% 18.2% 17.6%
II. Fixed Budget Items
30999 Transfers To Other Funds
Major Street Fund $ $ 100,000 $ $ NIA $ $ 0.00%
Local Street Fund 820,000 850,000 700,000 175,000 28% 620,000 (80,000) ·11.43%
Budget Stabilization Fund 250.000 NIA 0,00%
~ LC. Walk.er Arena Fund (Operating Subsidy) 301,000 271,837 260,000 65,000 25% 260,000 0.00%
N Public Improvement Fund (Fire Equipment Reserve) 150,000 150.000 150,000 37,500 25% 150,000 0.00%
State Grants Fund (Grant Matches) 105,000 NIA 0.00%
MOD State Rehab Loan Fund NIA 0.00%
TIFA Debt Service Fund NIA 0.00%
Tree Replc1_c_ement NIA 0.00%
1,521,000
30851 General Insurance
'
$ 236,222
$
$
1,476,837
281,887
$
$
1,110.000
365,000
$
$
2n.soo 27% $
0% $
1,030,000
365,000
$ (80,000) •7.21%
$ 0.00%
30906 Debt Retirement 375,101 216,860 212,006 4,759 2% 212,006 0.00%
10891 Contingency and Bad Debt Expense 268,110 495,550 400,000 (65,394) ·16% 400,000 0.00%
90000 Major Capital Improvements 139,543 140.414 85,000 12,275 5% 245,000 160,000 188.24%
Total Fixed-Budget Items $ 2,539,976 s 2,611,548 $ 2,172,006 $ 229,140 10% $ 2,252,006 $ 80,000 3.68%
As a Percent of Total General Fund
Expenditures 10.!!% 10.9% . 9.1% 5.5% 9.4%
Total General Fund $ 23,235,978 $ 23,971,534 $ 23,843,628 $ 4,178,009 17% $ 23,923,628 $ 80.000 0.34%
Recap: Total General Fund By Expenditure Object
5100 Salaries & Benefits $ 12,895,861 $ 13,226,336 $ 14,246,608 $ 2,964,052 21% $ 14,248,608 $ 2,000 0.01%
5200 Operating Supplies 790,815 705,722 728,431 101,161 14% 728,431 0.00%
5300 Contractual Services 6,991,218 7,496,547 7,092,034 730,590 10% 7,091,434 (600) .Q.01%
5400 Other Expenses 159,350 186,615 '127,105 16,498 13% 127,105 0.00%
5700 Capital Outlays 502,633 662,617 327,444 83,449 17% 486,044 158,600 48.44%
59Q_O AU Other Financing Uses 1,896,101 1 693,697 1,322,006 282,259 23% 1,242,006 (80.000} •6.05%
Total General Fund $ 23,235,978 $ 23,971,534 $ 23,843,628 $ 4,178,009 17% $ 23,923,628 $ 80,000 0.34%
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
% Change
Original Budget Actual Through Actual As % Revised Estimate Change From From2003
Actual 2001 Actual 2002 Estimate 2003 March 2003 of Revised ,00, 2003 Origin.II Original Comments
202 Major Streets and State Trunklines Fund
Available Fund Balance • BOY s 2.9B9,718 s 2,361,992 $ 1,607,931 s 1,622,095 s 1,622.095_$_ _ ______!i,_164
Revenues
Special assessments $ 228,652 $ 324,200 s 200,000 $ $ 200,000 s 0.00%
Federal grants 3,331,781 3,487.352 656.000 584,000 (72,000) -10.98% STP GRANTS (LINCOLN ANO CRESTON PROJECTS)
State grants 186,000 91,973 10,950.000 135,717 11,650,000 700,000 6.39% SHORELINE DRIVE GRANTS
State shared revenue 2,513,944 2,582,023 2,675.215 192.140 2,675,215 0.00%
Interest income 159,976 95,702 100,000 15,228 100,000 0.00%
Operating transfers in 100,000 0.00%
Other 283,125 2,635,118 320,288 4,999 320.288 0.00%
s s s s 628,000 4.21%
~
6 703.478
' 9,316 368 14 901,503 348,084
' 15 529503
w 60900 Operating Expenditures
s s
$100
S200
5300
Salaries & Benefits
Opera~ng Supplies
Contractual Services
$ 596,655 $
195,361
894,483
608.476
194,808
976.042
' 905.439
209,200
831,651
224263
80,606
292,916
2'%
39%
35%
905,439
209.200
831.651
' 0.00%
0.00%
0.00%
5400 Other Expenses 5.589 6.082 4,000 80 2% 4,000 000%
$700 Capital OuUays 1.635 N,A 0.00%
$900 Other flnanci[!S uses
s
610,523
2,304.246 $
3,059,793
4,845,201 s
640.413
2,590.703 s 597.865 ,,.
0%
s
940.413
2.890,703 $
300,000
JOO.COO
4684%
11.58%
DEBT SERVICE· S300 0000 TRANSFER TO LOCAL STREETS
90000 Pr,;,ject Expenditures
5200 Operating Supplies $ s $ $ N/A $ $ 0.00%
5300 Contractual Services 5,026,958 5.211,064 13,670,000 314.785 2% 13,367,000 (303,000) -2.22% SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
_:j700 Ca ital Out! N/A 000%
$ 5,026,958 $ 5.211,064 s 13,670.000 $ 314.785 2% $ 13,367 000 s (303,000) -2.22%
s 7331,204 $ 10.056,265 $ 16,260.703 $ 912.650 6% s 16.257,703 -0.02%,
s - - _ ,_ _ .893.895 _ $ _ 645.164
'
$ 2,361,992
Availab!.!_Fund Balance· EQY
' 1.622.095 248.731 1.057.529
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter . Other Funds
% Change
Original Budget Actual Through Actual As% Revised Estimate Change From From 2003
Actual 2001 Actual 2002 Estimate 2003 M.irch 2003 of Revised :mro Or;g;na1
203 Local Streets Fund """ Original Comments
Available Fund Balance• SOY $ 122,966 $ 156,747 $ 87,279 $ 9,701 s 9,701 s (77,578)-
Revenues
Special assessments s s s
Federal grants
State grants
' 120,108
24.000
143,845 $ 100,000
100,000
100,000
270,000
$
270,000
(100,000)
0,00%
0,00%
-100.00%
EDA FOR SEAWAY INDUSTRIAL PARK
SHORELINE DRIVE GRANTS
State shared revenue 645.381 638,602 654,351 52,927 654,351 0.00%
Interest income 12,845 14,516 10,000 221 10,000 0.00%
Operating transfers in 820,000 1,050,000 700,000 175,000 920,000 220,000 31.43% GENERAL FUND TRANSFER; $300,000 FROM MAJOR ST
Other 806
$ '"
1,623,098 $ 1,647,769
20,000 353
s
20,000 0.00%
~
+So
60900 Operating Expenditures
' 1,584 351
' 228,501 1,9743S1 $ 390.000 24.62%
'100 Salaries & Benefits $ 431,139
5200
ssoo
Opera~ng Supplies
Contractual Services
112,034
508,360
' 546.438
115,491
705,199
' 443,157
93,500
571,529
' 107,329
31,93S
150,834
2'%
34%
26%
' 443,157
93,500
571,529
$ 0.00%
0,00%
0,00%
S<OO Other Expenses 1,6S5 1,769 1,000 0% 1,000 0.00%
S,00 Capital Outlays WA 0.00%
~9_QO Other Financin Uses 124.113 WA 0.00%
1,053,228 $
90000 Project Expcnditu,es
1,493,010
' 1,109,186
' 290,098 26%
' 1 109,186
' 0.00%
$200 Operating Supplies
s
S300 _ Contractual Services
' 536,089
536,089
$
$
501,805
501.805
's 510.000
$
25.614
NIA
3% ' 785,000 275.000
0.00%
53.92% SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
1,589,317
' u1g.,ia1s
's
510.000
1,619 166 '' 25,614
315 712
3%
17% 's 785,000
1.894186
$ 275 000 53.92%
16.98%
Available Fund Balance - EOY
' 156,747 $ 92Q!_ 52~ (77.510)
' 89,866
' 37.422
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
% Change
Original Budget Actual Through Actual As% Revised EsUmate Change From From 2003
Actual 2001 Actual 2002 Estimate 2003 March2003 ofRev,sed 2003 2003 Orig,nal Ongmal Comments
254 LC. Walker Arena Fund
Available Fund Balan,;e • BOY
• 3,861
• 19,133 s 36,327 s 34.476 s l4,476 s (1,851)
Revenues
Special assessments
State grants
$
• s $ s s 0,00%
0.00%
State shared revenue 0.00%
Charges ror services 561.449 623,382 590,000 223,363 590,000 0.00%
Interest income 500 ,0 500 0.00%
Operating transfers in 301,000 271,837 260,000 65,000 260,000 0.00% GENERAL FUND TRANSFER - OPERATING SUBSIDY
Olher 520 371 5,000 824 5,000 000%
~
c.:,,
$ 862,969 5 895,590 s 855,500
• 289,197 $ 855.500 $ 0.00%
70805 Operating Expenditures
3,228
' ' '
S,00 Salaries & Benefits 12,692
5200
5300
Operating Supplies
Contractual Services
' 11,543
835,912
11,942
863,565
$
861,389 261,470
25%
NIA
30%
12,692
861,389
$ 0.00%
0.00%
0.00%
5'00 Other Expenses NIA 0.00%
5700 Cap,tal Outlays 242 4,740 NIA 0.00%
5900 Other Finar.c:i Uses NIA 0.00%
' 847,697 $ BBO,f47
• 874.081
' 264,698 30% $ 874,081 $ 000%
90000 Proje,;t Expenditures
s NIA
' ' '
5200 Operating Supplies $ $ 0.00%
530_9 Contractual Services NIA 0.00%
NIA 0.00%
's 847 697
$
$ 880,247 '' 874,081 's 264,698 30%
$
$ 874 081 ' 0.00%
AvalE'ble Fund Ba_!_a_nc;e • E(:)'! $ 19,133 $ 34.476
' 17,746
' 58,975 $ _____!M~
' p,851)
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
% Change
Original Budget Actual Through Actual As% Revised Estimate Change From From 2003
Actual 2001 Actual 2002 Estimate 2003 March2003 of Revised 2003 2003 Original Original Comments
403 Sidewalk Improvement Fund
Available Fund Balance. BOY $ 613.738 $ (95,006) S
Revenues
530.382
' (55.002) $ (55.002) $ (585,384)
Special ;issessments s 239,318 s 408.133 s 500,000 $ $ 500,000 $ 0.00%
Federal grants
0.00%
State shared revenue 0.00%
Charges for services 0.00%
Interest income 60,374 54,434 2,000 1,838 2.000 0.00%
Oper.,,~ng transrers in 195,201 100,000 100,000 0.00%
Other 1 578.010 1578.010 1 578010 0.00% PROPOSED ISSUANCE OF SIDEWALK ASSESSMENT BONDS
$ 299 692 $ 657.768 $ 602,000 s 1,579.848 $ 2,180,010 $ 1.578.010 26213%
~
0:, 30906 Operating Expenditures
5100 Salaries & Benel1ts s s s s NIA $ s 0.00%
'200 Operating Supplies N/A 0.00%
5300 Contractual Services NIA 0.00%
s,oo Other Expenses N/A 0,00%
S700 Capital OuUay:; N/A 0.00%
S900 Other Financi!:!9 Uses 373.443 245.122 376,345 0% 378,345 000% OEST SERVICE
$ 373,443 $ 245122 $ 378,345 s 0% s 378 345 $ 0.00%
90000 Project Expenditures
5200 Operatjr,g Supplies $ $ $ s N/A $ $ 0.00%
5300 Contractual Services 622,656 372,642 700.000 40,509 S% 700,000 0.00% SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
5'00 Other Expenses 12.337 N/A 0.00%
S900 Other Finan~i Uses N/A 0.00%
634,993
1,008.436
$ 372.642 s
s
700.000
• 40.509 6% $ 700,000 s 0.00%
Available F~nd Balance. EOY $ (95,006) $
' 617,764
(55,002) $
1,078,345
54,037
$
$
40,509
1,464,337
4% $
$
1.078,345
1,046,663 s 99~_,_626
0.00%
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
% Change
Original Budget Actual Through Actual As % Revised Estimate Change From From 2003
Actual 2001 Actual 2002 Es~mate 2003 March 2003 of Revised 2003 2003 Original Onginal Comments
404 Public Improvement Fund
AvaUable Fund Balance. BOY $ 421,441 $ 1,564,898 $ 1,250,898 $ 985,797 $ 985,797 $ (265.101)
Revenues
Special assessments $ $ $ $ $ $ 0.00%
Property taxes 0,00%
Federal grants 108,000 108,000 0.00% EDA GRANT FOR SEAWAY INDUSTRIAL PARK
State grants 52,850 0.00%
Contributions 1,200,000 0.00%
5ales ol P1operty 76.257 70,725 100,000 56P89 100,000 0.00%
Interest income 31,890 32,294 18.000 2,784 18,000 0.00%
Operating transfers in 450,000 150,000 150,000 37,500 150,000 0.00% GENERAL FUND TRANSFER - FIRE EQUIPMENT RESERVE
Other 31,859 39,352 0.00%
s 95,373 s 376,000 40.30%
~
$ 1 790,006 $ 345 221 268,000 $
' 108.000
""' 30936
SH>O
Operating Expenditures
Salanes & Bene~ts s $ $ $ WA $ $ 0.00%
S,00 Operating Supplies N'A 0.00%
5300 Contractual Services 60,350 60,000 0% 60,000 0.00%
5400 Other E,,.penses NIA 0.00%
S700 Capital Outlays NIA 0.00%
5900 Other Financi Us5 NIA 0.00%
s s 60.350 $ 60.000 $ 0% s 60.000 $ - - - •_ _0.QO:'&
90000 Projeet Expenditures
5200 Operating Supplies $ $ $ $ NIA $ $ 0.00%
5300 Contractual Services 53,375 70,011 NIA 0.00%
5400 Other Expenses NIA 0.00%
57QQ__ _ cae1tal Outla:G! 593,174 793.961 375 000 20.636 6% 375.000 000% SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
$ $
645549
646.549 $
853 972
924.322 $
375.000
435,000
$
$
20.536
20.636
6%
5%
$
$
375.000
435,000 ' 0.00%
0.00%
Available E..!!_n!I Balance• _EO_Y_ _ $ 1.564.898 $ 985,797 $ 1,083.898 $ 1,061,534 $ 926.797 $ !157.101!
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
% Change
Original Budget Actual Through Actual As% Revised Estimate Change From From 2003
Actual 2001 Actual 2002 Estimate 2003 March200J of Revised 2003 2003 Original Origin;;,( Comments
482 State Grants Fund
Available Fund Balance. BOY s s s s $
Revenues
Special assessments $ s s $ $ s 0.00%
State grants 363,056 984,837 2.628,434 64,297 2,628.434 0.00%
Federal grants 406.614 0.00%
Sales of Property 0.00%
Interest income 0.00%
Operating transfers in 693,281 110.612 220,000 220,000 0.00% LOCAL MATCHES
Other 10,000 0,00%
s 1,462.951 s
' 2,848.434
'
$ 1,105.449 64.297 $ 2.848.43-4 0.00%
~
a, 30!J3G Oper.:1.ting Expenditures
5100 Salaries & Benefits $ s s s s
5200
5300
5400
Operating Supplies
Contractual Services
' NIA
NIA
NIA
0.00%
0.00%
0.00%
Other Expenses NIA 0.00%
5700 Capital Outlays NIA 0.00%
5900 Other Financin Uses NIA 0.00%
90000 Project Expenditures
s
• ' ' NIA
' ' 0.00%
Operabng Supplies s s s
""'
5300
5,00
Contractual Services
CaQital OuUa~
$
1,283,344 1.099,837
NIA
NIA
s $ 0.00%
0.00%
179,607 5,612 2,848.434 205.786 7% 2,848,434 0,00% SEE ·BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
1.462,951 s 1,105,449 s s
1.452.951 s 1,105.449 '' 2,848,434
2.848.434 $
205,786
205,786
7%
7% '' 2,848.434
2,848,434
0.00%
0.00%
Available Fl_Jr,d Balance· EOV s L
' ' (141.489) $ $
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
% Change
Original Budget Actual Through Actual As% Revised Estimate Change From From 2003
Actual 2001 Actual 2002 Es~mate 2003 Maich 2003 of Revised ,oos 2003 Original Original Comments
594 Marina & Launch Ramp Fund
Available Cash Balance - BOY s 2,292 $ 66,148 $ {54,874) S (183,560) $ p83.560) S (128.686)
Revenues
Spec·,a1 assessments $ $ $ $ $ $ 0.00%
State grants 159,150 37,352 160,000 160.000 000% GRANTS FOR DREDGING AND ELECTRICAL WORK
State sharetl revenue 0.00%
Charges ror services 292,144 275,736 260,000 94,150 260,000 0.00%
Interest income 1,544 SQQ 0.1)0%
Operating transfers in 0.00%
0'1>e, 2,128 575 250.000 250,000 0.00% tNTERFUND LOAN FOR LOCAL GRANT MAT__Q_I-:!_
$ 4S4.966 s 315 263 $ 670,000 $ 94.150 5 670,000 $ 0.00%
~
70756 Operating Expenditures
(D 5'00 Salaries & Benefits $ 92,244 $ 106,934 $ 126,550 $ 10,246 S% $ 126,550 s 0.00%
5200 Operating Supplies 7,942 13,030 13,300 0% 13,300 000%
5300 Contractual Services 127.477 107,812 113,142 11,352 ,0% 113,142 000%
5400 Other E~penses 545 1,020 1,500 0% 1,500 000%
5700 Capital Outlays N,A 0.00%
5900 Other Financing Uses
Other Cash Uses (e.g. Debt
"' WA 000%
Principal 5,126 20,980 N/A 0.00%
s 223,643 $ 207 816 $ 254.492 5 2, 598 S% $ • 254 492
• 0.00%
90000 Project Expenditures
5200
5300
Operafing Supplies
Contractual Services
$
167.467
$
357,155
$
320,000
s
46,319
WA
1'%
$
320,000
• 0.00%
0.00% SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETA!L
5700 Ca ital Outla WA 0.00%
167 467 $
s
357 155 s
s
320,000
574,492
• 46,319 "% $ 320,000 $ 0.00%
Avajlab~Cash Bala~ce - EOY $
391.110
-~~ s
564,971
p83,560) $ 40,634
$
$
67,917
ps7.J27!
12%
's 574.-492
!88,052) $ p28,686)
0.00'
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
% Change
Original Budget Actual Through Actual As% Revised Estimate Change From From 2003
Actua\2001 Actual 2002 Estimate 2003 March2003 of Revised 2003 2003 Original Original Comments
584 Municipal Golf Course Fund
Available Cash Balance. BOY s s s
Revenues
1.151,296 492,650 414,650
' 498,322
' 498.322
'
83,672
Special assessments s s s s s
State grants
State shared revenue
' 0.00%
0.00%
0.00%
Charges for services 0.00%
Interest income 55,488 11,985 2.500 1,702 2.500 0.00%
Operating transfers in 0.00%
Other 0.00%
s s
N 70542 Operating Expenditures
55,488
' 11,985
' 2,500 1.702
' 2,500 0.00%
0 s
S\00 Salaries & Benefits s
5200
5300
Operating Supplies
Contractual Services
' ' N'A
NIA
NIA
' ' 0.00%
0,00%
0.00%
5400 Other E:o:.perises NIA 0.00%
5700 Capital Outlays NIA 0.00%
5900 Other Financing Uses 714.134 6.313 220.000 0% 220.000 0.00% LOCAL MATCH FOR TRAIL PROJECT GRANTS
Other Cash Uses (e.g. Debt
P£!!,~_IL__ __ NIA 0.00%
714,134 s s
90000 Project Expenditures
' 6.313 220,000
' 0%
' 220.000 0.00%
5200 s
' '
OperaUng Supplies $ NIA $ $ 0.00%
$300 Contractual Services NIA 0.00%
_5700 .S:,13pitat Quo~ NIA 0.00%
s s $ NIA $ $ 0.00%
714,134 s
Available Cash Balance. EOY s 492,650
' 6.313
' 220.000
' 0% 220,000
s
0.00%
'
$ _ 498.322 197,150 $
'
500,024 280,822 83,672
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
% Cllange
Original Budget Actual Through Actual As% Revised Estimate Change From From 2003
Actllal 2001 Actual 2002 Estimate 2003 March2003 orRev,sed 2003 2003 Original Original Comments
661 Equipment Fund
Available Cash Balani;e • BOY $ 380,984 _$_ 367,B§j_ $_ _ _ 467.711 s 657.212 s _ _1,;gl.1.L__!_ 189.501
Revenues
Special assessments s s $ s $ $ 0.00%
Slate gralltS 0.00%
State sh:.red revenue 0.00%
Charges for services 1,985,638 2,287,485 2,150,000 551,091 2,150,000 0.00%
Jnlerest income 21.873 10,123 10,000 1,819 10,000 0.00%
Operating transfers in 0.00%
_000 127 412 135,071 100,000 42.572 100 000 000%
$ 2 134 923 $ 2,432 679 $ 2 260,000 s 595,482 $ 2,260,000 $ 0.00%
f'0 60932 Operating E,cp,mdilures
~ 5'00 Salaries & Benefits s 446,604 $ 406,279 414,424 s 99,743 $ 414.424 $ 0.00%
S,00 Operating Supplies 649,641 523,881
$
463.840 132,027 '"
'8% 463,840 0.00%
5300 Contractual SeNices 459.869 449,607 552,786 81,453 15% 552.786 0.00%
5'00 Other Expenses 4.070 6,034 S,000 0% S,000 0.00%
5700 Capita! Outlays 713.321 732,328 827,120 1,016 0% 627,120 0.00% SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
Other Flnanclr,g Uses WA 0.00%
'"" Olher Cash Uses (e.g. Debt
P_rJrn::ipal 125,449 25.169 N,A 0.00%
2,148,056 s 2143,318 $ 2,263170 s 314,239 14'.!§ $ 2.263 170 $ 0.00%
90(100 Project Expendilures
S,00 s
'
Operating Supplies $ $ $ WA $ 0.00%
5300 Contractual SeNices NIA 0.00%
5700 Ca~ital Outla NIA 0.00%
s $ $ $ 0.00%
s 2,148,056 s 2143,318 $ 2,263.170 $ 314,239
N,A
14% '
$ 2 263 170 ' 000%
Available Cash B.ilance.'.:..£QY _ $__ 367,651 $ 557.212 $ 464,541 $ 938.455___ __$ 654,042 $ 189,501
City of Muskegon
Quarterly Budget Reforecast • 2003 1st Quarter • Other Funds
% Change
Original Budget Actual Through Actual As% Revised Estimate Change From From 2003
Actual 2001 Actual 2002 Estimate 2003 March2003 of Revised 200, 2003 Original Original Comments
642 Public Service Building Fund
Available Cash Balance• BOY s (200,083) $ [11CfB02) S {67,216) S (75,628) $ (75,628) $ (8,412)
Revenues
Special assessments s $ $ $ s s 0.00%
Stategr.;mts
0.00%
State shared revenue 0.00%
Charges for servii::es 557.060 612.766 557,060 153,192 557,060 0.00%
Interest income 1.000 1,000 0.00%
Operating transfers in
0.00%
Other
0.00%
s 557,060 s s
' 612 766 558,060
' 153.192 558 060
' 0.00%
""
""
60442
5100
Operating Expenditures
Salaries & Benefits s 178,227 $ 177,196 s 183.508 s 40.096 22% s 183,508 s 0,00%
S200 Operating Supplies 22,582 27.049 25,950 1,587 6% 25,950 0,00%
S300 Contractual Services 193.075 225,738 224,424 64,084 29% 224,424 0.00%
5'00 Other Expenses (1,951) 11,572 1,500 2,212 147% 1,500 0.00%
5700 Capital Outlays 68.738 67,543 120.000 S14 0% 120,000 0.00% SEE "BUDGETED CAPITAl IMPROVEMENTS" FOR DETAIL
5900 Other financing Uses NIA 0.00%
Other Cash Uses and Adjustments
(e.g. Debi Principal) 7,107 68.494 NIA 0.00%
467,779 s 577.592 s
90000 Project E;,;pendltures
555,382
' 108.493 20% $ 555,382 $ 0.00%
5200 Operating Supplies $ s s
5300
5700
contractual Services
Caeital Cutia~
' ' ' NIA
NIA
NIA
0.00%
0.00%
0.00%
s
467 779 $ 577,592 's 555.382
$
$ 108.493
NIA
20% 's 555 382 ' 0.00%
0.00%
Availa_Ql_e Cash Balanc~__'§Q_Y _s_ (110,802) $ (75,628) S (64,538) S !30,929)
' (72,950) S (8.412)
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
% Change
Original Budget Actual Through Actual As% Revised Es~mate Change From From 2003
Actual 2001 Actual 2002 Estimate 2003 March2003 of Revised 2003 2003 O"ginal Ong;n_al Comments
643 Engineering Services Fund
Available Cash Balance• BOY $ 117,697 s 144.167 s 192,831 $ 101,200 s 101,200 $ (91,631!
Revenues
Special assessments s s s
State grants
State shared revenue
' $ $ 0.00%
0.00%
0.00%
Charges for services 554,621 488,240 656,756 101,161 556,756 000%
10,000
Interest income
Operating transrers ·1n
Other
6,378
28 005
3,000
27.206
'°' 10,000 0.00%
0.00%
0,00%
589,004 s 518.446 s 666,756 $ 101 567 $ 666,756 s 0.00%
f'0
w "'" Operating Expenditures
s s
5'00
5200
5300
Salaries & Benefits
Operating Supplies
Contractual Services
'
405,17S
18,746
127,790
373,101
22.198
136,545
'
486,146
20,830
160,000
' 74,635
6,643
29,561
'5%
32%
18%
486,146
20,830
160,000
' 0.00%
0.00%
000%
5'00 Other Expenses 1,844 1,441 6,300 1,351 2'% 6,300 0.00%
5700 Capital OuUays 14,568 6,326 16,950 2,526 '5% 16,950 0.00%
$900 Other Financing Uses NIA 0.00%
Other Cash Uses and Adjustments
~ e h t Principa_lJ _ _ _ 5,967 21 802 NIA 0.00%
$ s s
90000 Project Expenditures
562.156 561.413 690,226
' 114,938 '7%
' 690 226 0.00~
5200 s s
' $
' NIA
'
Operating Supplies 0.00%
5300 Conttactual Services 378 NIA 0.00%
~700 Ca ital Cutia NIA 000%
s
378
' ' ' 0.00%
''
N<A
562,534 $ 561.413 $ 690,226 s 114.938 17!1l 690,226 0.00%
s s s
Av31llabte Cash Balance• EOY 144,167 101,200 169,361
' 87,829
'
77,730 5 {91,631)
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
%Ch,mge
Original Budget Actual Through Actual As% Revised Estimate Change From From 2003
Actual 2001 Actual 2002 Estimate 2003 March200l of Rev;sed 2003 2003 Original Origin.ii Comments
677 General Insurance Fund
Available Cash Balance. BOY $ 935,251 s 855,366 $ 953,436 $ 884,953 s 884,953 s (68.483
Revenues
Special assessments $ $ $ s $ s 0.00%
State grants
0.00%
Stale shared revenue
0.00%
Charges for seNices 2,169.113 2,236,965 2,776,509 571,330 2,776,509 0.00%
Interest income 33,408 14.466 12.000 2,724 12.000 0.00%
OperaLing transfers in 881.596 1,206,722 953,918 953,918 0,00% TRANSFER FROM PENSION FUNDS FOR RETIREE HEALTH COSTS
Other 11.750 151,517 25 000 1.926 25 000 0.00%
s 3,095,867 $ 3,609,670 s J.767,427 $ 575,980 $ 3,767.427 s 0.00%
.,,.
N 30B51
5100
Operating E;,,:penditures
Salaries & Benefits s 42,455 s 41,577 50,542 $ 10,095 20% 50,542 $ 0.00% R!SK MANAGER POSITION
5200 Operating Supplies 922 14' 1.000 7S 6% 1,000 0.00%
5300 Contractual Services 3,243,323 3,569,898 3,730,427 787,398 21% 3,730,427 0.00%
"oo Other &.penses 2,075 1.000 0%
s,oo Capital Outlays 2,405 '"
315 1,000 0%
1,000
1,000
0.00%
0.00%
"" O!lier Financing Uses
Other Cash Uses and Adjustments
(e.g. Debt Princieal)
N'A 0.00%
(115.428) (32,711} N/A 0.00%
s 3,175.752 s 3,580.083 $ 3,783,969 s
90000
Project E;,,:penditures
' 797,568 21%
' 3,7!!3,969 0.00%
5200 Operating Supplies $ s s s NIA $ $ 0.00%
5300 Contractual Services NIA 0.00%
~ - - Ca12ital Outl:,i~ NIA 0.00%
$ $
3,175,752 s 3,580 083 $ 3,783 969 's 797,568
NIA
21%
$
$ 3,783.969
$ 0.00%
0.00%
Available Cash Balance. EOY $ 855,366 $ 884,953
'
$ 936,894 663~_ $ 868~411
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
% Char,ge
Onginal Budget Actual Through Actual A-s % Revised Estimate Change From from 2003
Actual 2001 Actual 2002 Estimate 2003 March 2003 of Revised 2003 2003 Orig,rial Ongimil Comments
591 Water Fund
s 5,071.320 s s
' ' ' 3.535,923
Available Cash Bala nee• BOY 5,982,941 653,537 4,189,460 4,189,460
Revenues
s $ s
Special assessments
Federal grants
State grants
' 100,000
$
' 56,000
100,000
56,000
0.00%
0.00%
0.00%
EDA GRANT FOR SEAWAY !NOUSTRIAL PARK
SHORELINE DRIVE
State shared revenue 0.00%
Charges for services - City 3,980,059 3,209,797 4,500,000 255.499 4,500,000 0,00%
Charges for services. Township 541,130 450,000 34,287 450,000 0.00%
Hydrant Rental - Township 000%
Interest irn:ome 230,864 84,466 50,000 9,359 50,000 0.00%
Operating tr<msfers in 454,812 0.00%
Other 52,184 215,621 7,600,000 58,981 100,000 (7 500 OOOJ -98,68% SONO ISSUANCE DELAYED TO 2004
4.717 919 $ 4,051,016 12,700,000 358,126 s s (7,444,000)
Operating Expenditures Administration
$ §
' 5,256.000 -58.61%
"""
5100
S200
Salaries & Benefits
Operating Supplies
s
,0
s $ s NIA
NIA
$ $ 0.00%
0.00%
5300 Contractual Sen,ices 453,613 433,310 513,566 119,657 23% 513.566 0.00% INSURANCE/INDIRECT COSTS/ADMINISTRATION FEE
5400 Other Expenses 6,144 7,966 26 NIA 0.00%
5700 Capital Outlays NIA 0.00%
5900 Other Financing Uses 471,301 1,023,550 417,559 4,750 1% 417,559 0.00% INTEREST ON WATER BONDS
Other Cash Uses anr:l Adjustments
{e.5. Debt Princieal) 591 739 (155,361) 405,000 0% 405 000 0.00% PRINCIPAL ON WATER BONDS
s
'
$ 1,522.807 $ 1,309.465 1,336,125 $ 124.433 9% 1,336,125 $ 0.00%
N 60559 Operating Expenditures Maintenance - City
= S,00
S200
5300
Sal.iries & Benefits
Oper.iting Supplies
Contractual Services
$ 788,512
235,205
350,528
'
712,770
169.124
336,967
$ 610,798
107,431
335,775
$ 179,568
18,195
65,781
29%
H%
20%
'
610,798
107,431
335,775
s 0.00%
0.00%
0.00%
5'00 Other Expenses 12.356 33,577 9,480 13.784 145% 9,480 0.00%
7,327 2,256 9,500
S700
5900
Capital 0\/\lays
01her Finan Um
s $ 1.254,694 1 072,984
"'
277,525
2%
NIA
s
9,500
1.072,984 $
000%
000%
000%
60660 Operating Expenditures Maintenance• Township
1,393.928 $
' 26%
S,00 Sal.ines & Benefits $ 206,700 s 203,610 s 286.738 $ 48,685 H% $ 286,738 $ 0.00%
~.
S,00 10.219 14,491 0.00%
S300
5'00
Operating Supplies
Conlractllal Services
9,526
120,508
'69
126.067
792
129,494
4'3
'"'
22,208
1S0
2%
17%
14,491
129.494 0.00%
0.00%
Other Expenses 34% 443
S700 Capital OI.Jlla)'S 000 3289 4,350 4,350 0.00%
5900 Other Financi Uses NIA 0.00%
338 003 s 343 977 $ 435,516 s 71,326 16% $ 435,516 $ 0.00%
60558 Operating Expenditures Filtration
S,00 S.ilaries & Benefits 440,416 $ 475.572 s 521,526 106,509 $ 521,626 0.00%
5200
S300
Operating Supplies
Contrac:tl/al Services
' 115,076
349,281
129,191
340,767
112,195
441,100
$
16,732
59,624
20%
1S%
14%
112.195
441,100
$
0.00"/4
000%
5'00 Other Expenses 2,374 4.067 4,150 1,023 25% 4,150 0.00%
S700 Capital Outlays 104,235 37,325 72,700 2,222 3% 72,700 0.00%
5900 Other Financi Um N>A 0.00%
$ 1 011 383 s 987,923 $ 1,151.771 s 186,110 16% $ 1,151,771 $ _ 0.00%
90000 Project Expenditures
5200 Operating Supplies $ $ $ $ NIA $ $ 0.00%
5300 Contractllal Services 1,363,419 1,036,817 8,491,800 24,139 2% 1,213,500 (7,278,300) -85.71% SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
S700_ _ ~!_a_l_Oulla NIA 0.00%
1,363 419 $ 1 036,817 s 8,491,800 $ 24 139 2% $ 1,213,500 $ [7.278 300) -85.71%
AVailable Cas~_.i_l_;ance ~o___r
5,629,540
_··_,_ _ 5,071,320
$
s
4,932 875
4,169,460
's 12,488,196
865.341
'
$
683,533
3.864,053
13%
's 5,209,896
4,235,564 $ 3,370,223
-58.28~
City of Muskegon
Quarterly Budget Reforecast - 2003 1st Quarter - Other Funds
% Change
Original Budget Actual Through Actual As% Revised Estimate Change From From 2003
Actual 2001 Actual 2002 Estimate 2003 March 2003 of Revised 2003 2003 Original Original Comments
590 Sewer Fund
Available Cash Balance. BOY s s s ,- t231,951 s (213,967)
Revenues
1,445.721
' 1,027,063 1.445,918 1,231,951
Special assessments I $ $ I
' '
0.00%
Federal grants 57 .000 57.000 0.00% EDA GRANT FOR SEAWAY INDUSTRIAL PARK
SI.ale grants 462,131 100,000 100,000 0.00% SHORELINE DRIVE
State shared revenue 0.00%
Charges for services 3,808,493 4,009,593 4,775,000 366,442 4.775.000 0.00%
Interest income 69,601 22,263 40,000 J,690 40,000 0.00%
Operating transfers in 0.00%
Other 113.201 7 591 80,000 7.548 80 000 0.00%
s s s 4,995 000 377.680 s 5,052,000 s 57.000 1.14%
Operating Expenditures Administration
3,991.295 4,501.578
'
"""'
s,oo
S200
Salaries & Benefits
Operating Supplies
s • s s N'A
NIA
s
'
0.00%
0.00%
""
0)
5300 Contractual Services 629,842 370,396 292,940 57,387 20%
NIA
292,940 0.00% INSURANCE/INDIRECT COSTS/ADMINISTRATION FEE
5400
5700
5900
Other Expenses
Capital OuUays
Other Financing Uses
9,835
651,981
13,300
741.054 152,987
"
89,256
NIA
58% 152.987
0.00%
0.00%
0.00% INTEREST ON SEWER BONDS
Other Cash Uses and Adjustments
je.g. Debt Princieal) 551.971 32.972 455,315 0% 455.315 0.00% PRINCIPAL ON SEWER BONDS
s 1,157,722 s
60SSS Operating Expenditures Maintenance
1 843.629
' 901,242
' 146,690 IS% 901.242
' 0.00%
5100
S200
Salaries & Benefits
Operating Supplies
s 587.142
54,343 ' 659.059
95,733
s 749,491
59,605
s 123,573
6,420
16%
11%
s 749.491
59,605 • 0.00%
0.00%
5300 Contractual Services 1,684,616 1,579,258 2,150,587 194,918 9% 2,150,587 0.00%
5400 Other Expenses 2,093 3,0/)./ 2,800 9% 2,800 0.00%
5700
_fil?OO
Capital Outlays
Other Financin Uses
8,511 4.055 13,900 "'
554 4%
NIA
13,900 0.00%
0.00%
s
90000 Project Expenditures
2,336.705
' 2.341,109
' 2,976,383 5 325 721 11%
' 2.976 383 0.00%
5200
5300
5700
Operating Supplies
Contractual Services
Ca ital OuUa s
' 229.619 ' 797,859
I
665,000 ' 28,004
NIA
,%
NIA
s
665,000 • 0.00%
0.00%
0.00%
SEE "BUDGETED CAPITAL IMPROVEMENTS" FOR DETAIL
229,619 797,859 s 665,000 28,004 ,% 665 000 0.00%
'' '
5 5
4.409,953 4,296.690 5 4,542,625 s 500415 11% s 4,542.625 Q,Q_Q~_
Available Cash Balance. EOY
• 1,027,063
' 1.231,951 s 1,898,293 5 1,109,216
• 1,74'!..,_326
City o; Muskegon
___ ---------------------·-·---------r
--[- -
--~---
!
·-·
--,----~ -----7----- - ----
----------·----+---·--------- ··-----
QuarterlyBudget Reforecast-20031s!Quarter!
Bud~Ldfapit_aJimyr_'?"e-=-e11ts~---------1--------;.----=~=
!
·1 . .
0 9 8
I
i.
__ :r-=--+-=~~-=f-- _ -
1st Quarter[
i
2nd Quarter'!
:
3rd Quarter,
!
, I
I Responsibility " d'" :
8 u ge1
Budget'-
1
Budgeti
·
Budget!
,
Comments
-----i--- -
______________________ (-------+---- ______ _;___ Reforec;as~ __ Reforecas-;-___ Reforecas; _ _ _ _ _
~~ - - - - I ________ j -----·-----------
I I . I '
- - ____J ~ - - - - - - · - - - - - ~ - - - - - - - - ____ I __
. - - - - , · - - - - - - ----- ---- ----- -------r-~-·
2003 PROJECTS
101 General
______ 1
--· -
1
Fund
- -------------- ---- -- -- r---- - , ---- ----
,----- , -------------------•,
_ 92DO}+city Hall Elevator Upgrade_ and Poi;_ce Air Conditioning _ , .. Al-Sha tel __ $ ~ 55,000 , $ ___ 55,0D~D
r' I ______ i _____ 1- ____ _
_91002~ireStationlocation/Operation_Analysis __________ Simpson ______ - __ 25,000 _ _ _ L ______ I_ _ _ _ _ _ _ c.1nyoverFrom2~02
_9_1004 __:£:_ees~ParkRes~"?~~~~~~t~n~nceBuil~ing ~c~ __ j_ _ _ _ _ - ~--135,000 ______ !__ ___ J _____ ----~-rry~v=~~om2002 _ _ __
l--=
=-:-=-=----~-~~-~=--- =-···-~---
92003 ;city Hall Energy Audit Recommendations Implementation AI-Shatel \
:=--=~~7 =--~- - =-==-=~~--=-- -- -
30,000 30,000 I
:-----t--~--__
I
------J ·--•~:OD~ _:__245,0:_
_290 jSmartzoneLDFA___ ____
----+~\IS_U_"~~-ergt.S:e_n_~~~r_o::f_Ex_
..~e_l_le_n_ce~--------
---~ 1--- _
_____,_B_ruba_k_e_r-Cl~~,- _ ----+-~----~·----1~ ·--- 1_ _ _
-=+-....-.==-r=-=-~-----i_--=:_~~-~
_2,_~8_5,977_ __ 3,~00,0q£l____ _F..:_'.lanc~:_'l''.t~-~FA_~x lncreme~t~onds
404 ~Public lmproveme-ntFund =--=- J. _
I_ -- - _L _ ---
99020 [Industrial Park Property Acquisition_________________ ~ 1:u_baker-C!arke;. ____ so,00~-+-..---- 50.~00
+- -- --
_____ --=--:-~
_______ ----\---- __
~~ --
-~:=~:1~;;~~: ---·-------_________ ---!- !::~:-~;_-_;______ 3~~;~~~J:· _ 3~~;-~~?-L ________1J __··_ -~-~ _·
_:=_-:----r- --7-- f-~_::1-----.
r'0 ----~---~--:=ceS-=~~n-------
-.._j
375 000
-202 :Major Streets _::_-: . J_:_-:-_ -=:i---__:_ .-
~~6~~~~:;;t~i\;;,~~~~:::~:-;-~~6~ --- ----- I ;::~~::r-1-=--- ~~6:666 1 4
~ bJJ!~-[-.a-~I:~~n~~~f:::~---_-__-·_--_-_-:: -====--==::;_-_-_-:_ -:~-~~-::-:=r---------{~~
:~-6-:f !
~=- ~666+-=--- - · - - __ i _:__~~~--~:.._~---=t~~Miij~d-Re~~rf;~~:~a~r::t;~~1b:~!!·
-?~:~+~=-=-----~-------±----~~---~-··1--~_-.:_M-!l-.1.~-,-,-R-.-,urf~~ .
0
~,}~6~6-+-__-__--
-
4
~~-·j~-~~-~i-=-
Partia~y "Fun~~~~$230,009 ST
,____ ,__ ----- -----------~-----·-- __ ]_ ____ .---- - - - - -- 1 - - - - - - - ~ - - --·- ---·----·
91031 ! Hackley Avenue, Huson to Seaway · AI-Shatel 160,000 I 7,000 : · Special Assessment Failed
2~ioo~ 3~~~?:oo _I ~~~nst~~i~n '.Added-'~!~~:~~~- . - -
=--~[ ~--
-·910~~~112~ st~~e< lrwi~·t;;-Getty ;~·Nims to Wood Al-Sha tel ----- --
91027 1Terrace St., Iona to Peck AI-Shatel i 230,000 : 300,000 I Re~onstruction
-~6~t:~~.:;"fl~n~_Jf~i~:~ ~~~~h~eu~r~: and~"-m,a")__ . :
~-6017 --\Shoreline Drive East - - - ~ ~ .... _____ _ '
~::~~=-T
Al-Shatel ,
~6:6661 _
8,500,oooi::= 8,500,000 1
=-~~}~66::r--- - - --- :
+= -~ _ j
~~ Rec~~c~n----~-=---=--
N=_"°".:""'"'"---""''"'-'-"-" '°-"'"""~'"".'""'""-~""'
-
__9163~.. LShor,e~.i~e D~_ve fr?m Terrace to Sou~~~rn _ Al~atel ] 3,050,0~~..l__.~..'..~~.~9..e_ I . - - - - - ~ _1___ ___ _ _1:esurfac1ng....:..!'..__unde~~ $3 o~ ~l~on Budd M1ch1gan :~nd
--f ·- -
~=-~ ---- -----------__=f=---_ _E_.'._6~4-2~~~~r~--=---··-±~~---->----~---_--_------·------
_ 9_6059 jS1dewalks_:_f-:'_and1~p_R_a~p_:__ ___ ____ I -~I-Sha~ 50,0~?+= ___ 50,~~i- 1 ____ j _ - __ - __ __
! . ._
203 \Local Streets I I i, I i. :
=90~751Th_ ~~ps~~~l~m to Edgewal.•r. ~990'} I_-=-- --+-----~~=~P~~1~·1_Assess~_;n, F~ed_ ·-=-
-=-
I
90074 Edgewater, Thompson to Wilcox
-91022 ·1c1ifford, M_iner to i.8keSho-;:-;·orive -1=-
--_?0071 · 1Mann~ M()Cln and Torrent from Lakesho~e Driv~_~o Harrison
i
AI-Shatel
AI-Shatel
AI-Shatel
AI-Sh~!~I I
___100,00~ - -
80,000
- - - ~_:___ _
5,000 ,
, ----8O,ooo - - --80,000 I
I
2~!f_OoO-i- -2~o~fo_f___ --- ·
---~--
I
:--
Special Assessment Failed
- - - -Reconstnict1on
Torrentw111 No~s_:_o~:_
---- -
99020 Seaway-Hackleylndustrial AI-S~tel -1 450,~~~- ! 2002Ca~over-F_u~ded60%~~EDA~ra_n_1_ _ _ _
96059 Sidewalks - Handicap Ramps AI-Shatel _so,ooo : 50,0~
510,000 I 785,000
I
,~ity of Muskegon I
Quarterly Budget Reforecast - 2003 1st Quarter I
Budgeted Capital Improvements I - ------------
--! --- _ ] I I_ - ______ _
·-·----·
·
-···--------·-------·----:--------- I i
1 1---- . . ,.
··-----·---·
1st Quarteri 2nd Quarter,. 3rd Quarter!
·---·-·---------·
0 9 1
1 Responsibility I " d'"" 1 Budget! Budget[ Budget: Comments
' -------tI
·
---~L ____________ --------- I I --~\_R~fe_,es;,sil___R"o,~asti Retor~c~ti~-==-~-=~~~~=---------:~ -.
8 ue,1
2003 PROJECTS
403 ]Sidewalks ______ __ --· ____ I __ [ I_··_:= ___ [_:::=~= !--====--=]-=---==:-:=-:=-~--=~~--_:-_ . __
-~~i~:::::;::c•;:::owam - __ AI-Shatel I __ 7:J-~~09~:_1__ :=-~1.==-~=-~:=~~~~~~:~~:=:'~"~~:~~-,~~~~=~-
-:~ci;~ 1~:::~ ~;~~;::~ :~::::::: ;;~f;~~~~U~f:~S_)__ -rs~~::~:~~~:: 1: :~~:cici~+------ ~~ci:ci66t· -- ·------+-----·-----··--1- -· -------- ------·------------ -- ---· -- -
1
1
90040-Lai~o~~ra-;i-Pt-;::ise I(Hentage to Grand Trunk) I Scott·! 30,060 ! 3o,Oci0f'- .-----· --1-- --·-·7-- ·----
------~~~tinwed p·~-;erty Acquisition
-91008 Core Communities lrnt1at1ve (Teledyne-Boardwalk} -r&ubaker-Clar~J- 1,000,000 i 1,000,000 i , I Fln:i.nced With Core Com;~nilies G;nt -- ·
-- · - - - - - · - - - - - - - · - -+---' - ---1 - - - - , 7 - - - - - · - 1 · - - - - - - - 1 -----···--t-- - - - - · - · - - - ·-·-··-· -···-
96096 Site Assessment Projects !Brubaker-Clarke. 177,434 177,434 1 I I
· .
98050 \Lakeshore Trail Phase I! (Laketon) \
--·· - - - · ~--·.-. -·- '-+---- --iT··--·-·---
Scott 1, 250,000 I
250,000 ---+--- -·-1 ·------
I,
. -------. ·-·-·----
_9908_~~~k8Sti0ffiTfailPii_~~-~~(Sh~~line Qrive)_ Scott 280~~-- -· 2~?,ooo·r--- , - - - - · · - - - - - - - ----- --·-- --· --- ··-· -
1
____ _]_______ _________ , 2,848,~3.....,---""'-37.43_4_J __. I j - - - · - - - ____ -·- _
590 iSewer I i
l'0
0::,
1?oci~ ~FOresl& Ma~.l:~~--~!i?..:1_ ----~-~-~-_-_-_-_-_-~--------1-- A~~i-~ --~-2_?.E_O~ i
~907? Thompson, Pl~.':1 to -~-~~~a_ter (990') Al-Shale~-- 75,000 I
i
12?,ooo"-,- - - ·
5,000 !
---+-
\---- __
! ___ ---· _____ Rep1~:.:!~?~: Pan_ei:3!~~Rall~
--+-- _
-·---~~~-1~":'_ss_~~-~!~_:?~:._d_
--=~=---=
92074 I E~gewater, Thompson to Wilcox ---~I-Shale! I 20_.~_oo '. 1,000 I . ! Spec~1-~~e~~e-~1~~~1_e.~
AJ-Shatel -+-- 5,000 i _______ ---i-------
= -_
910311HackleyAvenue. Huson to Seaway 1·- I - - - · - · Special Assessment Failed _______ .
91027 !Terrace St., Iona to Peck -~ A!-Shatel I 150,000 ! 130,000 7 i Street Project-Associated Utility Wolk
__91 o~~hin!i!t~~-Hud~~?.. ~~:~?.re Dr:v~_ A!-S~atel I
40,• ool---, 4o;oo~+----- -- 1 ·--- ---- ·- ·~;;:!Pr~i~.9_:_As~o~~iedu:ti~-~~-= -~~
99020 !Seaway-Hackley Industrial A!-Shatel -1
100,000 f - - - - - - ---+-- 2002 Carryover - Funded 60% by EDA Grant
96_~i±J~.?.~elin~_E~ive E_~~- Ar-shat~r--:frjO,ooo 100,000··1 I ·-··- -- -· _·-=---=~tr_eelP~j~~-i:~~~~1e~ti1iivio_r11___ -
lSewer Rehab Projec! ______ I AI-Shatel 150,000 .f 150:00?=-1-------\-------j _______ - - - - - - - - - - - - · · · - ---·- ··-----·
I 665,000 I 751,000 , I
__ _ 0
I
____ ,__ ---==t:_--::-~- --+----
· - - • - - - - ·---------
City of Muskegon -----------····--
Q_uart_erly_B_IJdg_fJ_! Refore£1!S! -2()031stQuarterL '
--!------'---- -=-:-'-
L ____ __( _____ -+- 1
_ _
Buc:fg<;led_(;_~_piti,f_lme,:ov_e_ments ___ - - : - - -+- ___ -1----- -~- _ - -- __--,-,___ _
: ----- ------------ ----- ---------+--------·--+--- ' ---~-·-------~-
___ -... -----r-- - .------ --;----
I ,
0..
rig1na
I ---1st QU3rier,
,
2nd Quaitert
,
3rd Quarter:
'1 1 Responsibility : Bud et Budget; Budget: Budget _ Comments
--L-- ----i
_ g ____ Reforeca~t_
[
_ Re forecast' _ Reforecast ____ _
_i - - - - - ___ i ___ ___] __ ---- _J__ -------
2003 PROJECTS
~_J~~P1UmtoEdg€l~ater(990')_________ .. ----!-~1-:ha:--~--
- - - - - - _____ ,. _ _ _ _ _ _ _ - - - - - - - - - - - - - - - - - - ..!...----·
50,000
------t------- --~-------
! --- 1,50• !- - -
---t------------1---··
i - -
----->--
:
Special Assessment Failed
-= -=::~~~:::: '~ -~=~
90074 .Edgewater, Thompson to Wilcox I AI-Shatel I 15,000 I - I : ! Special
- ___ ,, _Failed
Assessment
-91031 iHackleyAvenue,Hudsoll-to.Seaway-. i Al-Shatel r s,oooT 2,0001 .-- - I __ _ S~:_~ial_ ~~sessm~nt ~~e~ __ . _ _
·gzoos··~ims St. Tank-PainlinQ ·- ----· ----- ---Ai-Shatel- i - - 200,ooor- -2cm,o(i0-1 ---- - -- -~-- ------:
.;:D~:;~!t;~_.:~~~:;~hoce ~=•~
Wrll Do Marshall Tank Instead of Nims Tank
91025 iWashington, Hudson to Lakeshore Drive _____ I A!-Shatel
15 •
140,000 ,
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~ ~- ~-=:=:=- -~= _
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96017.!Sh~~e-line- rive Eist·-- - -----···-· ---- _____ ;----A!:.S-h"atel - ~ - ---1-oO~OOO-i-· -100,000·~:- --- ·-: --- I: · ---- --· Street
-- Project-Associated
... - -- Utihty Wor1<. --
Street Pro1ect - Associated Utthty Wor1<.
92006IWater Main Replacements------------·· - I Kuhn--:----- 200,0oo 7--- 260,006 !----- ----- ·t- ----- -· 1 - ------ ------··
-92oO7-'.Bre8k~~ -_ Bea'"ch_Siffiei- ---··· - - _··---- -- - -ar-------K~hn--- -_----- 60,060 : ---- 6'o,000 '------- --·---~------===-----=--+~ ·- _. _ -----· ------ --- ·---
_99020 jSeaway-Hackley lndu_strial _____ - - - - - - ~ ___ Al-Shatel__J_ -------·- · ___ 130,000_: _ _ _ _ _ j_ ___ _____ +- __ 2002Carryover- Funded 60% byEDAi_~<mt -
97041 iWater Filtration Plant Improvements
·------,- ----- -------- --- ----- ------------------ Kuhn !
--·----.-- : _____ I
--------·---.I -------·· ---r···--
; -------- -------- --·
j .1,392,300 _: ii
f
92008 : Filter Reha_bililalion ____ j _Kuh_n _ 50,0_0~ ___ Proj_ect Delayed to 2004 For State Financing Program
r-
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(D _92009j_ Sedimentation.Basin Rehabilitation ____________ Kuhn __} _ 3A2.2,950 ____ 50,00~ J_ _ __ _ ,__________ ,___
Project Delay~to 2004 For State Financin9Program
~29_~~~ ~D~D!~_:~_ar@_~_E!i_~~"'.~i_o!:1___ ····-------- I ~~~~---L----~~~850 SO.~S'.9j ··---- _ -·-~ ___ ·--' Project Delayed to 2004 For State Financing Program
-·-- - ----·-
92011 -~uxiliacy Pump Station Convecsion _____ _ Kuhn j___ 1,939,700 50,000J _ _ _ _ ---l-~ __ _ ----
Proj~~~-Oelayed to_,~04 For Sta~:_!'"1na..1::.cin~ ~~gra'.11___ ..
i 8,491,800 1,213,soo I I
--- ---1 ---·-- - ·-·---- - - - . - - - - - - - - - --- ---- ----,-------- -- ------!-------- - 7- ------ . -·------,
_594JMarina&LaunchRamp ________________ L_ ---,---- __ l ___ -f- ·
91007 j
I
Hartshorn Electrical Up~~ade~-- - · - - - - - - _____ _
I
... Scott ____
1
___ 3?0,0~_o +---·- I
320,000 _1 .. ___________
1
'
__ _ Financed 50% W,th State Grant
_ _ _ _ ,.J.......____ _ _ _ _ .• _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ _J____ I 1
- - - - - - - - · · - · 1 - - ··-------·
. -
- 642 I Public Service -Building . .
99040 :Public Seruice Building Renovation _ _ _ _ _
- - - - - i' -
---+- Kuhn
-------------·--·-··-·--
. .
120,000 ·, 120,000 .
' _______________________i(.
1
--- • ·-------- I -----~------ , __ , - - - - · • , · - - - - - , ----
L ______ : _______ ·----1----·-_-;_-
\---· :i:•.~~~r=-
661 [EguipmentFund · ____ - ___ ____
·- i,8i:~~;kR;~:,:~:~:~~s(~;) ____ . _ ·
_____ ;Pickup Truc~s3/4_Ton {5_) __ ._ _ _ _ _ _ _ _ _ _ _ r
+-~~~~
___ Kuhn
:!: ~~-~t--_______ :_______-!!__________
_
_
Reptacement
Rep ta cement
----· ------··--
~ini-Pickup_Trucks (5)__ ____ _ ______ __J___
:Backhoe 4x4 (1) I
Kuhn _
Kuhn
_______1~0.00~__ 100,000+--------- __ [ _________
!_
;
90_,ooo
65,000 I
_L ___90,000 ~-- · - -
65,000 !
----+--____________ Replacement
Replacement
. ---·- - - - - ______ ,_____ ---- ------,----------· ·:;-r--·-----.. ___ ~-- - - - - · - - - · 1- - t - - - - - -----,---
1 ·---
;TV Truck (1) ____ I Kuhn : 176,000 1 176,000: ! , Replacement
\~~~-t~~~~d v~=~--Ot-he-~:-~t~~jp~-~-n-,--~---- -- :-- ·~~~--------t---8:~:~~f..: . : .- -8:;:~~rc----- -_-_-_-L
__-_-~- - - =r---=- ~-: -=- _::;~:::::_-_-,.-~ ·- ----·
---·!--- ·---- ------ ----h-31,598,331 '$ ___25,941,0~~1 ----- --------- ------
Date: April 8, 2003
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Proposed Healthcare Administration Change
SUMMARY OF REQUEST: As described more fully in the attached memo, staff
recommends that a change be made in the administration of the city's self-insured healthcare and
dental programs. Specifically, it is recommended that the current TPA contract with Benesight be
terminated effective May 31, 2003 and that Priority Health (who currently handles the City's HMO
program) be appointed to administer the self-insured program starting June 1, 2003.
FINANCIAL IMPACT: The change in service providers will result in direct administrative
savings to the city as well as better service and better coordination of the city's healthcare programs.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Termination of the current TPA service contract with
Benesight effective May 31, 2003. Appointment of Priority Health as TPA for the city's self-insured
healthcare and dental programs effective June 1, 2003.
COMMITTEE RECOMMENDATION: None.
9/18/97
Finance
Administration
Memo
To: City Commission City Manager
From: Finance Director
Date: April 2, 2003
Re: Proposed Healthcare Program Changes
The City funds two healthcare benefit plans for its full-time employees, retirees and their
dependants:
1. Priority Health HMO - This is the program of choice for about 90% of active employees;
retirees are not eligible for this plan. Comprehensive medical and prescription drug
benefits are provided. The city pays a monthly premium ($623.27 as of 6/1103) and
employees electing this coverage pay small monthly co-pays ($20.00) through payroll
deduction.
2. Self-insured Program Administered through Benesight - This plan covers most city
retirees and a small number of active employees. The city pays actual claims costs
under this program as well as fees to Benesight for administration. In addition, the city
self-funds its dental benefit program and this too is administered through Benesight.
For reasons outlined below, staff recommends that the current third-party administration
contract with Benesight not be renewed and that Priority Health be named as administrator
of the city's self-funded program effective June 1, 2003:
1) Service
a) Benesight is the current corporate manifestation of a TPA firm the dty began doing
business with some 15 years ago (then known as TPA of Michigan). There have
been a number of corporate mergers and name changes over the years but the most
recent change has resulted in a very noticeable drop-off in the level and quality of
service from the perspectives of both City staff and employees/retirees. Problems
• Page 1
O:IFINANCE\PAUL\MyDocumenls\MEMO - CITY COMMISSION HEATLCARE PROGRAM CHANGES 32003.doc
include inability to get necessary reports, long delays in processing benefit changes,
and generally poor customer service.
b) On the other hand, we have been pleased with the service provided by Priority
Health. As you know, Priority was chosen to replace the PHP program when it
ceased service in the area last year. Priority Health did an excellent job of making
what could have been a difficult transition relatively seamless for both the City and its
employees.
2) Improved Coordination
a) Staff believes that better coordination of the city's two programs will result by placing
them under a single administrative umbrella. This will enhance service to members
(as, for example, by employees having a single card instead of separate cards for
health and dental or, by providing for a smoother transition from active to retiree
coverage).
b) Better coordination of the programs will also facilitate development of strategies for
controlling healthcare costs. If healthcare programs were a city "department" it would
be second only to police in terms of total dollars spent. Yet there is only limited
"benefits" expertise on staff and we depend heavily on service providers to propose
cost-savings strategies. Staff believes that having both programs administered
through Priority Health will help ensure that duplication is eliminated and that the
city's healthcare dollars are spent wisely.
c) We would expect more frequent and better communications both because Priority
Health is locally based (Grand Rapids) and because the scope of the business
relationship will be expanded. Communications problems with Benesight (located in
Illinois) have been ongoing.
3) Cost Savings
a) Based on the factors outlined above, Priority was asked to prepare a cost proposal
for administering the city's self-insured program (see attached). Because of
differences in fee structures, side by side comparisons between Benesight and
Priority are confusing. Nonetheless, as the table below indicates, on a total cost
basis, the Priority proposal is clearly more cost-effective than the costs currently paid
to Benesight.
Priority Health (Proposed Benesight (Current)
Monthly Fee Annual
Service
Monthly Fee Annual Total Total
Plan Admin Fee (Per Member) $17.50 $37,380 $10.75 $22,962
Plan Admin Fee (General) None $4,500/yr 4,500
Dental Plan Administration 3.00 11,412 4.35 16,547
Large Case Management .75 1,062 Included
Inpatient Concurrent Review 1.70 3,631 Included
COBRAAdmin .39 833 Done in-house
HIPAAAdmin .50 1,068 $10/Occur 360
RxAdmin Fee Included $3,000/yr 3,000
RxPBM Fee Included .90/Rx 4,740
Shared Savings Included 35%of 35,922
Savings
Bank Account Fees No City Acct - Requires City 2,400
Req'd Account
Total Projected Yearly Costs $55,386 $90,431
If the Commission concurs with this recommendation, we will begin the transition
immediately with informational sessions for affected retirees and employees.
Thank you.
Date: April 8, 2003
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Termination of Employee Rx Reimbursement Program
SUMMARY OF REQUEST: As described more fully in the attached memo, staff
recommends that the prescription drug reimbursement program put into place in 1999 be terminated.
FINANCIAL IMPACT: Direct savings of about $7,000 per year. Additionally, significant staff
time will be saved.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Termination of the current prescription drug
reimbursement program effective May 31, 2003.
COMMITTEE RECOMMENDATION: None.
9/18/97
Finance
Administration
Memo
To: City Commissiop City Manager
/ \
From: Finance
Date: March ,
Re: Rx Reimbursement Program
Because of rising healthcare costs, staff in 1999 recommended that the prescription drug co-
pay for employees belonging to the PHP HMO program (now Priority Health) be increased
from $5.00 per prescription to $10.00. Some employees lobbied against this change and a
compromise program was put into place whereby employees would pay the $10.00 co-pay
but could file for reimbursement from the City of the extra $5.00 cost (up to a maximum of
$100.00 for the program year).
May 31, 2003 will mark the fourth full year of this program. The attached report shows the
program costs (on a calendar year basis) through March 15, 2003. Staff recommends that
this program be eliminated effective May 31, 2003 for the following reasons:
• Healthcare costs continue to rise rapidly and the funds and staff time spent on this
program could be better utilized developing ways to control these costs:
• A four-year transition seems adequate for assimilating employees to the realities of
higher Rx co-pays; and,
• Administration of the program is burdensome and will become considerably more so with
new federal HIPAA regulations intended to ensure privacy of medical records.
If the Commission concurs with this recommendation, employees will be properly notified
that program is ending and that no reimbursements will be made after May 31, 2003.
Thank you.
• Page 1
O:IFINANCEIPAUL\MyDocumenls\MEMO - CITY COMMISSION RX REIMBURSEMENT PROGRAM elimination.doc
CITY OF MUSKEGON - Rx REIMBURSEMENT PROGRAM SUMMARY
Through March 15, 2003
Year I
Bargaining Data 1999 2000 2001 2002 2003 Grand Total
100 Sum of Amount $ 798.37 $1,575.86 $2,003.09 $2,238.90 $ 458.98 $ 7,075.20
Count of EmployeeNbr 44 121 117 133 27 442
201 Sum of Amount $ 354.06 $ 376.12 $ 763.70 $ 505.43 $ 206.22 $ 2,205.53
Count of Em~ loyeeNbr 13 20 33 25 3 94
214 Sum of Amount $ 682.66 $1,079.14 $ 776.14 $1,024.26 $ 174.10 $ 3,736.30
Count of EmploveeNbr 23 38 26 29 4 120
301 Sum of Amount $ 487.06 $ 601.51 $ 810.78 $ 255.25 $ 69.04 $ 2,223.64
Count of EmoloveeNbr 15 22 19 6 2 64
370 Sum of Amount $ 756.43 $ 727.16 $ 928.80 $ 817.43 $ 29.75 $ 3,259.57
Count of EmploveeNbr 15 21 21 20 1 78
586HR Sum of Amount $ 304.00 $ 967.11 $1,181.56 $1,014.15 $ 3,466.82
Count of EmploveeNbr 11 20 21 16 68
586SL Sum of Amount $ 366.34 $ 752.59 $ 747.24 $ 659.06 $ 75.00 $ 2,600.23
Count of EmploveeNbr 8 18 18 15 2 61
Total Sum of Amount $3,748.92 $6,079.49 $7,211.31 $6,514.48 $1,013.09 $ 24,567.29
Total Count of EmployeeNbr 129 260 255 244 39 927
Bargaining Units:
100 Non-Union Employees
201 Clerical Union
214 Police Patrol
301 Police Command
370 Fire
586HR DPW/Parks Hourly
586SL DPW/Parks Salary
Date: April 8, 2003
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Power to Lakefront Development
SUMMARY OF REQUEST:
Authorize Consumer energy to install the necessary power poles and lines to provide
power into the entire development including the GVSU site as per the attached proposal.
Please keep in mind that the proposal calls for wooden poles to be installed along the lake
side of the proposed bike trail from Ryerson Creek all the way to the fence between the
Lakefront property and the Payne's property, see attached map, for an estimated cost of
$263,100.
FINANCIAL IMPACT:
The estimated construction cost of $263,100.
BUDGET ACTION REQUIRED:
None at this time. The cost will be from the CM! grant and overage assessed to developer
STAFF RECOMMENDATION:
Autherize staff to issue a notice to proceed to consumer to perform the necessary work.
COMMITTEE RECOMMENDATION:
- -~------·---
11 CMS Enemy Cvmµa11y Muskegon Service Center Tel: 231 122 9546
202 I /-foyt S!teet f"ax: 231 726 2950
Muskegon /-feigh/s, Ml 49444
Emergencies & Billing Oueslfons:
March 18, 2003 1 800 477 5050
Mohammed S. AI-Shatel, P.E.
City of Muskegon
933 Terrace St.
Muskegon, Ml 49443-0536
Dear Mr. AI-Shatel,
Per your request, the estimated conceptual cost to construct a primary electric distribution system for
the Muskegon Lakefront Development Smart Zone project is $263,100. The breakdown of this price is
as follows.
1. The route to serve the Grand Valley site will be an overhead primary distribution line with a
conceptual cost estimate of $52,700. This route starts at the intersection of Terrace and Morris
Street and runs along Terrace Avenue to the existing Shoreline Drive. It then follows the fence
line between Mr. Payne's property and the Edison Landing property to the Grand Valley site.
2. The route to serve the Edison Landing site will be an overhead primary distribution line with a
conceptual cost estimate of $94,600. This route starts at the Terrace Substation and crosses
the new Shoreline Drive at Western Avenue. It then follows the new Shoreline Drive Bike Path
west until it connects to the route that would be serving the Grand Valley site.
3. The routes to serve the properties inside the Edison Landing Development will be from an
underground distribution system with a conceptual cost estimate of $115,800.
Please understand that these conceptual designs are for bringing only primary voltage to the property
lines. Primary, secondary and services from the property lines to future premises are excluded from
this estimate. Future customers requesting service from their property lines will be responsible for all
costs associated with providing electric service as well as costs to accommodate the contaminated site.
Again, these estimates are strictly conceptual in nature and are Consumers Energy's best estimate
based on a projected route, conceptual design, and current economic conditions. They also include
contingencies for uncertainties such as the project requirements identified below. To the extent these
uncertainties are addressed by Lakeshore Development, LLC and the City of Muskegon, Consumers
Energy will be able to provide a more accurate design ar:d cost estimate.
Project Requirements:
1. The site will be at final grade before constructior, ,•,ill begin.
2. Necessary rights of way (easements, road permits, environmental permits, etc) acquired and
provided to Consumers Energy at no cost.
3. Construction will not proceed until all easements and/or contracts are signed and recorded.
4. No digging through contaminated soils or unsuitable fill material (concrete, asphalt, etc.)
5. No dewatering necessary because of a high water table or contaminated ground water.
6. Consumers Energy facilities are installed and can be maintained without requiring hazardous
waste site training for utility workers.
7. Legal descriptions established for all parcels, and property lines clearly staked.
8. A copy provided of the site Safety and Health plan including specific requirements for utility
work. If unavailable, the customer will be billed additional costs associated with site plan
development.
•
9. All landscaping is the responsibility of the developer/customers. The final grade where
underground electric cable has been buried cannot be changed.
These project requirements may change as additional information is conveyed between the developer
and Consumers Energy.
In addition, please provide the following contact information:
1. Name and address of the billable party.
2. Name and contact number for the "engineer'' as stated in the Due Care Plan.
3. Name and contact number for the site Health and Safety Supervisor.
The easement requirement for overhead facilities is 30 feet, 15 feet each side of the centerline plus
additional footage for appropriate guying and anchoring. The easement requirement for underground
facilities is 10 feet plus additional footage for switchgear, cabinets, manholes, etc. These easement
rights will be for electric utilities only and would need to be provided by you where the line is on City
property and acquired from any adjoining property owner, as appropriate.
The actual final cost will depend on several parameters including final route, labor bids, material prices,
and time of construction. If the project requires construction between December 15 and March 15, for
example, winter construction charges will apply and the project will be assessed an additional 25% of
the total cost estimate. The actual amount billed will be based on a more accurate work order estimate,
prepared after design is complete.
Consumers Energy will require a Letter of Intent from the responsible party, authorizing us to begin
engineering and procure materials, along with a non-refundable deposit of 50% of the conceptual cost
estimate. The responsible party will be invoiced for the remaining cost of the project, which will be due
prior to the start of construction. The down payment check should be made out to "Consumers Energy"
and sent to Consumers Energy, 2021 Hoyt St., Muskegon Heights, Ml 49444, Attn: Susan Ricord.
Once payment is received, this project will be placed on the engineering schedule and engineering will
proceed.
This estimate is valid for a period of 6 months from the date on this letter, after which an updated
estimate will be required.
We would be happy to discuss the above options and any unresolved issues to help move the process
forward and provide service to Muskegon Lakefront Development Smart Zone. The overhead or
underground options are very doable, and we look forward to working with Lakeshore Development,
LLC and the City of Muskegon to satisfy the project's electric distribution requirements.
If you have any questions, please feel free to contact me at (231) 727-6506.
Sincerely,
JA(dUv J,f\41/i4AJ
Sandra Anderson
System Engineer
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ELECTRIC LINE
,i;,~sumers_~ EXTENSION AGREEMENT
PARTI
Date of Agreement: i/-J -· O 3 -J' Work Order Number: _______ (Drawing Attached, Exhibit A)
Company: Customer:
CONSUMERS ENERGY COMPANY
a Michigan Corporation City of Muskegon
(Name)
2021 Hoyt St. 933 Terrace
(Street and Number)
Muskegon Heights, Ml 49444 Muskegon, Ml 49443-0536
(Address) (City, State and Zip Code)
Attention: Distribution Planning & Performance Manager Attention:
---------------
Service Location: Muskegon Smart Zone Condominium Site
Township _ _ _ _ _ _ _ _ _ _ _ _ _ __ County _ _ _ _ _....:.:.M:.:u:.:s.:.:k::.eg"-o:::nc......_ _ _ __
Town 10
-----'--'-------
Range _ _ _ _ _1:.:6_ _ _ __ Section ____ 19
_;_;;_ ____
Service Characteristics: _ _ _ _ _ _::_3_ _ _ _ _ _ Phase _ __;2:::7:.:7.:./4.:..:8:.:0__ Volt
• overhead Line Ounderground Line [!]overhead and Underground Line
Total Payment: $ 237,719.00 (Estimated)
(a) Part II, Terms and Conditions for Line Extension and (b) Computation of Electric Distribution System
Line Extension Deposit and Contribution (Residential/General Service) are attached hereto and are a part
of this Agreement. CUSTOMER ACKNOWLEDGES HAVING READ SAID ATTACHMENTS.
CONSUMERS ENERGY COMPANY f Muskegon
(Cu tamer)
By/{/{]} &l!tc~ (Signature)
ign:_!;uz:::::5;;;;::===
(Print or Type Name} (Print or Type Name)
Title
-====:.::.:==='--"==='-'------'='--
Distribution Planning Performance Manager
&
Title _ _ ~---'--'-~=\--"O'-"\I'--------'l-/-2.'J) I)
3
Form 861 3-2003 Page 1 of 4
ELECTRIC LINE
EXTENSION AGREEMENT
TERMS AND CONDITIONS
PART II
1. The Company, subject to the provisions of this Agreement, shall furnish, install, own and maintain an electric line
extension consisting of primary and secondary cables, transformers, power terminals, primary service connections and
associated equipment and any other underground or overhead line extension facilities which are required in connection
therewith, but not including secondary service connections, to make available alternating current, 60 hertz, electric
service to Applicant's service location identified in Part I. If the line extension is to serve a residential subdivision, the
Applicant shall record the plat of the subdivision in the office of the Register of Deeds in the County where the
subdivision is located, if it is not already so recorded. The facilities included in the line extension and its approximate
location, or in the case of a residential subdivision the location of the subdivision, are shown on the drawing attached
as Exhibit A. If said line extension is to serve a residential subdivision, it shall be designed and installed so that the
Company may serve streellighting luminaries therefrom. The character and location of all streetlighting equipment, if
installed by the Company, and all equipment constituting the line extension shall conform to specifications prepared by
the Company. Streetlighting service is not covered by this Agreement and, if provided by the Company, shall be the
subject of separate agreement between the Company and the governmental body requesting such service. The
character and location of all equipment constituting the line extension shall conform to specifications prepared by the
Company. Said line extension system shall be used for furnishing the Company's electric service to the Applicant and
to such other persons along such line extension, or beyond the same, as may become customers of the Company;
provided, however, that such line extension shall remain a separate, distinct unit for purposes of this Agreement and
any further extension therefrom shall have no effect upon this Agreement. Further, secondary service connections
between such line extension and any buildings or other facilities to be served therefrom are not covered by this
Agreement and shall be the subject of separate agreements between the Company and parties requesting such
service connections.
2. The Applicant shall pay to the Company, upon the execution hereof, the "Total Payment" as set forth in Part I and in
the "Computation of Electric Distribution System Line Extension Deposit and Contribution" attached, it being the
Applicant's share of the cost, after deducting the allowance for the investment which the Company is warranted in
making under its line extension policy. It is recognized that the cost to the Company of installing an underground line
extension is substantially greater than the cost of installing an overhead line extension. Accordingly, if an underground
line extension is included under this Agreement, said ''Total Payment" includes a nonrefundable contribution as stated
in said "Computation of Electric Distribution System Line Extension Deposit and Contribution," computed in accordance
with Rule B15.2 of the General Rules and Regulations included in the Company's Schedule of Rates Governing the
Sale of Electric Service (Rate Schedule) as now filed with the Michigan Public Service Commission. No portion of said
contribution, nor of any other contribution required hereunder, shall be refunded (except as otherwise provided in
Section 4, 5, 7 and 8 hereof) nor any interest paid thereon by the Company.
3. The Company will backfill and place excavated earth over any area of construction; the Customer is responsible for
the final restoration of the construction area. In regard to any amount identified as "Line Extension Deposit Subject to
Refund" in said "Computation of Electric Distribution System Line Extension Deposit and Contribution," the Company
will refund to the Applicant in accordance with the attached "Schedule of Refunds." No refund shall be made in excess
of said refundable amount and said amount shall bear no interest. Any portion of said amount remaining unrefunded at
the expiration of the fifth 12 months' period next succeeding the month during which the line extension is completed,
shall be retained by the Company.
4. If the underground electric line extension or any portion thereof is to be installed between December 15 and March
15, the Applicant shall pay the Company, prior to installation of said
Form 861 3-2003 Page 2 of 4
ELECTRIC LINE
EXTENSION AGREEMENT
extension or portion thereof, an additional nonrefundable contribution (winter charge) per trench foot as stated in the
"Computation ofElectric Distribution System Line Extension Deposit and Contribution" for the portion of said line
extension installed during said period. The Applicant will receive a credit for any part of said winter charge paid by
other utilities for joint use of the trench or paid by the Applicant for installation, by the Company, of gas pipe in the
same trench. No portion of said line extension will be installed between December 15 and March 15, unless the
Applicant has paid such additional contribution. Further, a nonrefundable contribution in addition to that provided for
herein may be required where, in the Company's judgment, practical difficulties (not considered in determining the
nonrefundable contribution included herein) such as water conditions or rock near the surface are encountered during
construction. If the Customer does not make the additional contribution within 15 days after written notice of the
amount of the additional contribution, the Company may, at its option, refund all payments made to it hereunder by the
Applicant, without interest, and with reasonable expenses incurred by the Company on account of this Agreement
deducted therefrom, and this Agreement shall thereupon terminate.
5. Prior to the installation of the line extension, and as a condition precedent thereto, the Applicant shall secure and
deliver to the Company, at no expense to the Company, recordable easements, in form and substance satisfactory to
the Company, granting all necessary rights of way for installation and maintenance of said line extension. If said line
extension is to serve a residential subdivision, said easements shall include, but not by way of !imitation, rights of way
for streetlighting in the subdivision by means of underground facilities, notwithstanding that the Company does not
undertake to provide streetlighting facilities and service as a part of this Agreement. If said easements are not secured
and delivered to the Company within thirty (30) days after execution of this Agreement, the Company may, at its option,
refund all payments made to it hereunder by the Applicant, without interest, and with reasonable expenses incurred by
the Company on account of this Agreement deducted therefrom, and this Agreement shall thereupon terminate.
6. For any underground facilities included in the line extension, the Applicant shall provide, at no expense to the
Company, rough grading (not more than three inches below finished grade) so that the underground facilities can be
properly installed in relation to the finished grade level. If said line extension is to serve a residential subdivision, after
rough grading, the Applicant shall install and maintain, at no expense to the Company, permanent survey stakes
indicating all property lines in the subdivision. Applicant shall maintain the average ground elevation within six feet of
any cable, conduit, wire, conductor or other underground facility thereafter at a level not to exceed twelve inches above
or three inches below the grade level established at the time of installation of said underground facilities. Further,
Applicant shall maintain the ground surface elevation in an area four feet wide around any transformer pad, subsurface
transformer, junction vault or other support at an elevation of not less than three inches and not more than six inches
below the base of any transformer mounted on a pad or other support and not more than six inches below the top of
any subsurface transformer or junction vault; provided, however, that changes in the ground surface elevation in
excess of the limits herein prescribed may be permitted upon written consent of the Company.
7. Upon execution of this Agreement and compliance in full by the Applicant with all conditions to be performed by him
as contained herein and in the Rate Schedule, the Company, subject to weather, labor disputes, availability of
necessary materials, and any other cause beyond the reasonable control of the Company, shall construct such line
extension so as to make electric service available to the customers to be served by such extension on or about the
completion date stated in Part I. Notwithstanding the foregoing, if, in the sole judgment of the Company, it does not
appear that all of the customers (or their equivalent) upon which the "Free Footage Allowances" and/or the "Company's
Share of Cost" (as the case may be) is based, as stated in said "Computation of Line Extension Deposit and
·contribution," will intact require and be prepared toTeceive electric service upon·completion of such line extension, the
Company may,
Form 861 3-2003 Page 3 of 4
- - -- --------------
Consumers Energi:)
ELECTRIC LINE
EXTENSION AGREEMENT
upon notice thereof to the Customer, postpone construction of said extension until such time as, in the sole judgment of
the Company, permanent customers requiring such quantity of electricity will require and be prepared to receive
electric service. In the event of such postponement by the Company the Applicant may, upon notice thereof to the
Company, cancel this Agreement at any time prior to the commencement of installation of said line extension by the
Company. If prior to the end of any such postponement by the Company, the "Line Extension Deposit Subject to
Refund" required for installation of such line extension increases or decreases due to changes in the estimated cost,
the Company may, prior to construction of such line extension, require the Applicant to (1) execute an amendment to
this Agreement reflecting said changes in cost and (2) pay such additional cost. If the Applicant fails to execute such
amendment and pay such additional costs within thirty (30) days after presentation of such amendment to the
Applicant, or if any such postponement of construction continues for more than twelve months, the Company may,
upon notice thereof to the Applicant, cancel this Agreement. In the event of such cancellation either by the Applicant or
by the Company as aforesaid, the Company shall refund all payments made to it hereunder by the Applicant, without
interest.
8. If at any time more than sixty (60) days after the date of this Agreement and prior to commencement of installation
of said line extension by the Company the "Line Extension Deposit Subject to Refund" and/or nonrefundable
contribution(s) required for installation of such line cxtensior, increase or decrease due to changes in ths P.cts
Schedule, the Applicant will be required, prior to installation of such line extension, to (1) execute an amendment to this
Agreement reflecting said changes, and (2) pay any additional amounts required by the Company as a result of said
changes. If the Applicant fails to execute such amendment and pay such additional amounts, if any, within thirty (30)
days after presentation of such amendment to the Applicant the Company may, upon notice to the Applicant, cancel
this Agreement. In the event of such cancellation by the Company as aforesaid, the Company shall refund all
payments made to it hereunder by the Applicant, without interest.
9. The Applicant shall have no ownership in said line extension by reason of any payment made hereunder. This
Agreement and the installation and operation of said line extension shall be subject to the Rate Schedule as may be
applicable including Rule B15.1, "Overhead Extension Policy," and B 15.2, "Underground Policy," copies of which will be
furnished to the Applicant upon his request. This Agreement and the benefits and obligations thereof may be
transferred by the Applicant only upon the Company's prior written consent. Any other attempted transfer by Applicant
shall be void.
10. All notices require hereunder shall be in writing and shall be sent by United States mail or delivered in person to
the parties at their respective addresses as set forth in Part I. Either party may at any time change the addressee or
address to which notices to it are to be mailed or delivered by giving notice of such change to the other party.
11. With respect to the subject matter hereof, this Agreement supersedes all previous representations, negotiations,
understandings or agreements, either Written or oral, between the parties hereto or their representatives, and
constitutes the entire agreement of the parties.
12. Additional Items
Payment of $200,000 due prior to construction start. Balance of estimated costs due prior to energizing service.
Because the project involves possible construction in contaminated soil, and uncertain below ground
conditions affecting construction, the costs related to this project are estimates only and are subject to increase.
The City of Muskegon will be responsible for payment of such increased costs, in the form of a contribution
due thirty (30) days after written notice."
Form 861 3-2003 Page 4 of 4
COMPUTATION OF ELECTRIC Attachment to Agreement
DISTRIBUTION SYSTEM LINE EXTENSION Dated
DEPOSIT AND CONTRIBUTIONS
-------------------
between Consumers Energy Company
(GENERAL SERVICE) and City of Muskegon
Estimated cost (including tree trimming, if any). $ 237,719.00
Company's Share of Cost: Three times estimated increase in annual revenue of
~ - - - - - - - ( - - ~ - - - - - t o t a l estimated annual revenue
from permanent customers minus ----~~present annual revenue
from permanent customers) for permanent customers to be immediately served
when the extension is completed $
Nonrefundable contribution stated in Items 1,2 & 4 below. . $ (89,929.00)
TOTAL LINE EXTENSION DEPOSIT SUBJECT TO REFUND. $ 147,790.00
NONREFUNDABLE CONTRIBUTION(S):
I. Nonrefundable contribution for additional cost for alternate route due to Applicant
not securing right of way and tree-trimming permits, and items requested or made necessary by the Applicant. + _$~_ _ _7_2~,6_2_2._00_
2. Nonrefundable contribution of $10.00 per kV A oftransformer•capacity installed for
said underground electric distribution system $ 7,500.00
3. Nonrefundable contribution for winter construction . ... + _ $ ~ - - - - - -
4. Nonrefundable contribution, except charges included in Items 1, 2 and 3 above, required
of the Applicant under Rule B15.2, Underground Policy, of the Company's Schedule
of Rates Governing the Sale of Electric Service, computed on the basis of a rate
of $7.00 per foot for 1,401 feet of required trench for the electric
underground distribution system and/or such other basis as is applicable .. .. + _$:,;__ _....:.9c:,8"0"7·ccoo=--
TOTAL NONREFUNDABLE CONTRIBUTION $ 89,929.00
TOTAL PAYMENT $ 237,719.00
SCHEDULE OF REFUNDS
I. Original Customers
At the end of each of the five 12-month periods during the five-year period beginning the month following the date the line extension
is completed, the Company will refund to the Applicant 20% of three times the actual revenue of the previous 12 months.
2. Additional Connected Customers
The Company will refund $500 for each permanent residential customer and/or the first year's estimated revenue for each permanent general
service customer who during the five-year refund period connects directly to the line extension covered by this Agreement. Di.rectly connected
customers are those who do not require the construction of more than 300 feet of primary and/or secondmy distribution line. Refunds will not be
made until the original customer(s) or equivalent is achmlly connected to the extension. Refimds will not include any amount of contribution in
aid of constmction for underground service made under Rule 15.2, Underground Policy, of the Company's Schedule of Rates Governing the Sale
of Electric Service.
Form 93 3-2003 Page 1 of 2
The following customers (original permanent customers) are to be immediately served when said line extension is completed:
Name Location
Grand Valley State University 200 Viridian Dr. Muskegon, MI
Form 93 3-2003 Page 2 of 2
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MISS DIG NUMBER: jSHEET or 05662097.001
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MISS DIG Nw.fiER• DATE:
10161942
1S11EU Cf"
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0552958t.00t
10161~
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