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CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 9, 2019 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
AGENDA
□ CALL TO ORDER:
□ PRAYER:
□ PLEDGE OF ALLEGIANCE:
□ ROLL CALL:
□ HONORS AND AWARDS:
□ INTRODUCTIONS/PRESENTATION:
□ CITY MANAGER’S REPORT:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. Kitchen 242 Management Agreement City Clerk
C. Ordinance Authorizing the Issuance of Water Supply System Junior Lien
Revenue Bonds Finance
D. Ordinance Authorizing the Issuance of Sanitary Sewer Junior Lien Revenue
Bonds Finance
E. 3rd Street Lighting Agreement Department of Public Works
F. City Hall Fire System Department of Public Works
G. Engineering Department – Survey Equipment Department of Public
Works
H. METRO Act permit – ZAYO Group LLC Department of Public Works
I. Trackless Department of Public Works/Equipment
J. City of Muskegon Spring Street Sewer Reroute and Bourdon Street Alley
Sewer Department of Public Works
K. 9th Street Area Sanitary Sewer Improvements & Getty Street Forcemain
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Replacement Department of Public Works
L. Beidler Sanitary Sewer Replacement Department of Public Works
M. Westwood Sanitary Sewer Replacement Department of Public Works
N. Jefferson-Strong Sanitary Sewer Replacement Department of Public
Works
□ PUBLIC HEARINGS:
□ COMMUNICATIONS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. Consumers Energy – LED Upgrade Phase 3 Department of Public Works
□ ANY OTHER BUSINESS:
□ PUBLIC PARTICIPATION:
► Reminder: Individuals who would like to address the City Commission shall do the following:
► Fill out a request to speak form attached to the agenda or located in the back of the room.
► Submit the form to the City Clerk.
► Be recognized by the Chair.
► Step forward to the microphone.
► State name and address.
► Limit of 3 minutes to address the Commission.
► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
□ CLOSED SESSION:
A. City Manager’s Evaluation
□ ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS
WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE
CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724-
6705 OR TTY/TDD DIAL 7-1-1-22 TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705.
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Memorandum
To: Mayor and Commissioners
From: Frank Peterson
Re: City Commission Meeting
Date: July 3, 2019
Here is a quick outline of the items on our agendas:
Work Session:
1. Suburban Nation – Chapter 2.
2. Midtown Square Phase 2 Update
3. Review of State Emergency Recreational Marijuana Rules
4. Presentation on the DDA
Regular Session:
1. Under the Consent Agenda, we are asking the Commission to consider the following:
a. Approval of meeting minutes from the most-recent City Commission meeting.
b. Approval of the Kitchen 242 Management Agreement
c. Approval of an ordinance authorizing the issuance of Water Supply System Bonds
d. Approval of an ordinance authorizing the issuance of Sanitary Sewer Revenue
Bonds.
e. Approval of a street lighting agreement with Consumers Energy related to the 3rd
Street streetscape project.
f. Approval of a contract to upgrade certain components of the fire alarm system at
City Hall.
g. Approval to purchase certain survey equipment for the Engineering Department.
h. Approval of a METRO Act permit for ZAYO Group LLC. They are installing fiber
optic infrastructure in the city’s right-of-way.
i. Approval of the purchase of one used Trackless tractor. This piece of equipment
will be used to remove snow from public areas, like the bike path and sidewalks.
j. Approval of the low bid for the Spring Street Reroute and Bourdon Street Alley
sewer projects.
k. Approval of the low bid for the 9th Street area sanitary sewer improvements and
the Getty Street Force-Main replacement.
l. Approval of the low bid for the Beidler Sanitary Sewer Replacement Project.
m. Approval of the low bid for the Westwood Sanitary Sewer Replacement.
n. Approval of the low bid for the Jefferson-Strong Sanitary Sewer Replacement
Project.
2. Under New Business we have one item:
a. Phase 3 of the LEW Street Light Conversion Project.
3. Under Closed Session we will conduct the City Manager’s Evaluation
Let me know if you have any questions/comments/concerns
Frank
Date: July 3, 2019
To: Honorable Mayor and City Commissioners
From: Ann Marie Meisch, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve the minutes of the June 25, 2019
Regular Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
JUNE 25, 2019 @ 5:30 P.M.
MUSKEGON CITY COMMISSION CHAMBERS
933 TERRACE STREET, MUSKEGON, MI 49440
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, June 25, 2019, Reverend
Darrin Longmire, Forest Park Covenant Church, opened the meeting with
prayer, after which the Commission and public recited the Pledge of Allegiance
to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood, Commissioners
Ken Johnson, Byron Turnquist, Debra Warren, Dan Rinsema-Sybenga, and Willie
German, Jr., City Manager Frank Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
INTRODUCTIONS/PRESENTATION:
A. Pollinator Habitat Update Department of Public Works
Leo Evans, City Engineer, provided an update on progress to date and planned
next steps relative to the urban Pollinator Habitat Conservation and Preservation
Plan.
2019-49 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the June 6, 2019 Budget
Meeting, June 10, 2019 Worksession, and the June 11, 2019 Regular Meeting.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
C. Peck & Sanford 2-Way Conversion Department of Public Works
SUMMARY OF REQUEST: To award the project to J. Ranck Electric, Inc. since
they were the lowest responsible bidder with a total bid price of $205,247.10
One bid was received for this project from J. Ranck Electric, Inc. for $205,247.10
Page 1 of 10
FINANCIAL IMPACT: $205,247.10
BUDGET ACTION REQUIRED: None. Project was budgeted in 18-19 reforecast
and will be carried forward into the 19-20 budget.
STAFF RECOMMENDATION: Award the contract to J. Ranck Electric, Inc.
G. Approval of Sale of City Home at 1015 E. Forest Avenue Community &
Neighborhood Services
SUMMARY OF REQUEST: To approve the resolution and instruct the Community
and Neighborhood Services Department to complete the sales transaction with
Kathryn Schmidt for the rehabilitated home at 1015 East Forest Avenue for a
purchase price of $115,000.
FINANCIAL IMPACT: The proceeds from the sale will be used to continue the
rehabilitation of affordable homes through the HOME program and provide
funding for our Homebuyer’s Assistance Program.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and direct the CNS
staff to complete the sale.
Motion by Commissioner Warren, second by Commissioner Johnson, to approve
the consent agenda as presented, except item B, D, E, and F.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
2019-50 REMOVED FROM CONSENT AGENDA:
B. Zoning Ordinance Amendment – Residential Design Criteria Planning &
Economic Development
SUMMARY OF REQUEST: Staff initiated request to amend section 2319 of the
zoning ordinance to reduce the minimum living space requirement for single-
family and duplex homes.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the zoning ordinance amendment.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
recommended approval of the request at their June 13 meeting.
Motion by Commissioner Turnquist, second by Commissioner Rinsema-Sybenga,
to approve the zoning ordinance amendment.
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ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Nays: None
MOTION PASSES
D. Sanitation Service Fee Resolution Finance
SUMMARY OF REQUEST: To adopt the resolution to continue charging a
sanitation service fee of $1.20 per month per residential utility bill plus an
additional .80 to provide recycling. The total charge per month per residential
utility will be $2.00. This charge will cover the difference between what is
currently being collected through property taxes and what the City currently
pays for residential sanitation.
FINANCIAL IMPACT: This fee will generate an estimated $318,000.
BUDGET ACTION REQUIRED: None at this time. The rate was incorporated into
the FY 2019-20 budget that was recently approved by the City Commission.
STAFF RECOMMENDATION: Adoption of the resolution.
Motion by Commissioner Warren, second by Commissioner Rinsema-Sybenga,
to adopt the resolution.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
E. Sewer Rate Adjustment Finance
SUMMARY OF REQUEST: In 2018 a resolution with a treatment rate for our
customers that is based on a multiplier of 1.73 times the rate the county bills the
city for wastewater was adopted. The 2019/20 budget calls for the multiplier to
be raised to 1.81 to cover the costs of capital improvement needs of our aging
infrastructure over the next ten years.
FINANCIAL IMPACT: None at this time.
BUDGET ACTION REQUIRED: None at this time. The proposed rate change was
incorporated into the FY 2019-20 budget that was recently approved by the City
Commission.
STAFF RECOMMENDATION: Adoption of the fee adjustment resolution.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to adopt the fee adjustment resolution.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
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Nays: None
MOTION PASSES
F. Park Storage Environmental Review Planning & Economic Development
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with
Envirologic to complete environmental investigation of city owned property at
1713 Seventh Street. Phase I and II environmental site assessments and a
baseline environmental assessment are needed before the city can sell the
property for development.
The requested consultant provided oversight during the removal of an
underground storage tank during demolition activities on the site and has
familiarity with the history and future needs at this location. They have submitted
a reasonable cost estimate for the work.
FINANCIAL IMPACT: $16,865 for environmental services as follow up to
demolition costs, covered by the Public Improvement Fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Envirologic for environmental services related to the property located at 1713
Seventh Street.
Motion by Commissioner Turnquist, second by Commissioner German, to
authorize staff to enter into an agreement with Envirologic for environmental
services related to the property located at 1713 Seventh Street.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
2019-51 PUBLIC HEARINGS:
A. Establishment of a Commercial Redevelopment District – 292 W. Western
Avenue Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Pubic Act 255 of 1978, as amended,
Sweetwater Development, LLC has requested the establishment of a
Commercial Redevelopment District. The creation of the district will allow the
building owner to apply for a Commercial Facilities Exemption Certificate, which
will freeze the taxable value of the building and exempt the new real property
investment from local taxes.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Establishment of the Commercial
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Redevelopment District.
PUBLIC HEARING COMMENCED:
Diane Foster, 153 Ottawa, made comments.
Mike Jenkins, 487 Washington, made comments.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
close the public hearing and establish the Commercial Redevelopment District.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist.
Nays: None
MOTION PASSES
B. Issuance of a Commercial Facilities Exemption Certificate – Sweetwater
Development, LLC Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 255 of 1978, as amended,
Sweetwater Development, LLC has requested the issuance of a Commercial
Facilities Exemption Certificate for their project at 292 W. Western Avenue. The
certificate provides a 50% reduction in the number of mills levied as ad valorem
taxes, excluding the State Education Tax, for the commercial portion of the
development. The company will be investing $4,154,539 in the commercial
space and will create up to 30 jobs, which qualifies them for an abatement of
12 years.
FINANCIAL IMPACT: The certificate provides a 50% reduction in the number
of mills levied as ad valorem taxes, excluding the State Education Tax.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Issuance of the Commercial Facilities Exemption
Certificate.
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to close the public hearing and issue the Commercial Facilities Exemption
Certificate.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
C. Request to Create a new Neighborhood Enterprise Zone District at 292 W
Western Ave Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 147 of the Michigan Public Acts
Page 5 of 10
of 1992, Sweetwater Development, LLC has requested to create a new
Neighborhood Enterprise Zone (NEZ) district for the parcel at 292 W Western
Avenue for a new mixed-use building.
FINANCIAL IMPACT: For those properties that are approved for a NEZ
Certificate, taxation will be levied using half of the State average of millages of
local entities.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To hold the public hearing.
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner German,
to close the public hearing.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
D. Transmittal of 2019-20 Proposed Budget City Manager
SUMMARY OF REQUEST: At this time staff is transmitting to the City Commission
the proposed budget for fiscal year 2019-20 which starts July 1, 2019. Both
hardcopy and electronic versions of the budget have been distributed to
Commissioners. Additionally, the budget is available for public inspection on the
City’s website and at the City Clerk’s office.
The proposed budget was reviewed in detail with staff at the June 6th work
session. A public hearing on the budget will be held at the regular Commission
meeting on June 25th. City ordinance requires that the budget be adopted by
the Commission on or before the second Commission meeting in June.
FINANCIAL IMPACT: The budget is the City’s financial plan for the coming
fiscal year.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the proposed budget for fiscal year
2019-20.
https://www.muskegon-mi.gov/2019-20-budget-and-quarterly-reforecast/
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Warren, second by Vice Mayor Hood, to close the
public hearing and adopt the proposed budget for fiscal year 2019-20.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood
Page 6 of 10
Nays: None
MOTION PASSES
2019-52 NEW BUSINESS:
A. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish Public Safety
1619 Superior
1285 Eighth Street
769 Catawba Avenue
SUMMARY OF REQUEST: This is a request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within 30 days. It is
further requested that administration be directed to obtain bids for the
demolition of the structures and that the Mayor and City Clerk be authorized
and directed to execute a contract for demolition with the lowest responsible
bidder or staff may issue infraction tickets to the owner, agent or responsible
party if they do not demolish the structure.
FINANCIAL IMPACT: General Funds
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner German, second by Commissioner Rinsema-Sybenga,
to concur with the Housing Board of Appeals decision to demolish 1619 Superior
and 769 Catawba.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron,
Hood, and Warren
Nays: None
MOTION PASSES
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to refer 1285 8th Street back to the Housing Board of Appeals.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood,
Warren, and German
Nays: None
MOTION PASSES
B. Approval of Midtown Square 2 Construction Contracts Planning &
Economic Development
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SUMMARY OF REQUEST: Staff is seeking approval of the seven contracts totaling
$2,999,230 for the construction of ten attached townhomes and six detached
single family homes.
FINANCIAL IMPACT: $2,999,230 – funded via a loan from the Michigan State
Land Bank.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of and authorization to sign the
construction contracts.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve and authorize signing of the construction contracts.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, German, and Rinsema-
Sybenga
Nays: Warren
MOTION PASSES
C. BoomTown Market Economic Development Revolving Loan Fund
Application Planning & Economic Development
SUMMARY OF REQUEST: BoomTown market is seeking a loan from the City’s
Economic Revolving Loan Fund for $55,000 in order to complete their necessary
capital accrual to open a downtown grocery store in the first floor of Lakeview
Lofts on Western Avenue.
FINANCIAL IMPACT: $55,000 to be repaid at prime interest rate at time of
closing +2% over a 5 year term.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the loan application and release
necessary funds to BoomTown Market as presented.
Motion by Vice Mayor Hood, second by Commissioner Johnson, to authorize the
loan application and release necessary funds to BoomTown Market as
presented.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Nays: None
MOTION PASSES
D. Ordinance – Operation of Electric Scooters & Electric Bikes Public
Safety
SUMMARY OF REQUEST: The Director of Public Safety requests the City
Commission approve the proposed Ordinance as it pertains to the use of
Page 8 of 10
Electric Scooters and Electric Bikes within the City. This ordinance defines
operator age requirements, allowed locations for operation and operation
restrictions in reference to State and City motor vehicle requirements.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the proposed ordinance for use of
Electric Scooters & Electric Bikes in the City.
Motion by Commissioner Warren, second by Vice Mayor Hood, to approve the
proposed ordinance for use of Electric Scooters and Electric Bikes in the City.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
E. Convention Center Resolution and Agreements City Manager
SUMMARY OF REQUEST: Staff is seeking approval of the Bonding Resolution and
two agreements with Muskegon County. Approval of these three items
simultaneously is important, as all three require approval to move the project
forward. The amendment to the development agreement will better clarify the
responsibilities and commitments of all three parties following our decision to
adjust the size of the facility and remove prevailing wage requirements. The
Accommodation Tax Allocation Agreement outlines the County’s commitment
to use Accommodation Tax receipts to reimburse the city its costs associated
with the convention center debt. The Bonding Resolution is required 45 days
prior to the issuance of capital improvement bonds.
FINANCIAL IMPACT:
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the Amendment to the Development
Agreement, the Accommodation Tax Allocation Agreement, and the Bonding
Resolution authorizing issuance of 2019 Capital Improvement Bonds.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the Amendment to the Development Agreement and
Accommodations Tax Allocation Agreement.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
Motion by Commissioner Johnson, second by Commissioner German, to
Page 9 of 10
approve the Bonding Resolution authorizing Issuance of 2019 Capital
Improvement Bonds.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Gawron, and
Hood
Nays: Johnson
MOTION PASSES
F. Request for Final Planned Unit Development (PUD) Approval Including
Street Vacations – The Docks Planning & Economic Development
SUMMARY OF REQUEST: Request for final PUD approval for The Docks
development at 3400, 3460, 3474 Wilcox Avenue, 1875 Waterworks Road, and
1490 Edgewater Street. This request also includes the request to vacate
Edgewater Street, north of Lot 80 and the following unimproved streets within
the Edgewater plat, those being Arlington Avenue, west of lot 24; Windward
Drive, west of Lot 46, Brighton Avenue, west of Lot 66; Manhattan Avenue, west
of the existing cul-de-sac portion of Edgewater Street; and Edgewater Street
north of the existing cul-de-sac.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the PUD with the
condition to add more street trees and to work with the staff arborist on marking
trees to remain.
COMMITTEE RECOMMENDATION: The Planning Commission approved a
motion to recommend approval of the PUD with conditions by an 8-1 vote.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Johnson,
to approve the PUD with the condition to add more street trees and to work with
staff arborist on marking trees to remain.
ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and
Warren
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
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Date: July 3, 2019
To: Honorable Mayor and City Commissioners
From: City Clerk
RE: Kitchen 242 Management Proposal
SUMMARY OF REQUEST: Our Kitchen Manager’s contract is set to expire on June 30th for
Kitchen 242. We are requesting to accept a proposal from Renae Hesselink to continue
managing Kitchen 242 through June 30, 2020.
FINANCIAL IMPACT: Not to exceed $20,000 annually.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To accept the proposal from Renae Hesselink’s for
management of Kitchen 242 through June 30, 2020.
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Finance
DATE: July 2, 2019
SUBJECT: Ordinance Authorizing the issuance of Water Supply System Junior Lien Revenue Bonds
SUMMARY OF REQUEST: To authorize the issuance of Water Supply System Bonds in an amount not
to exceed $2,000,000. The Bonds are expected to be sold to the Michigan Finance Authority and payable
in 20 annual principal installments at an interest rate of 2%. Scheduled closing is August 30th.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None, it is in the approved 2019-20 budget.
STAFF RECOMMENDATION: To approve the Ordinance authorizing the issuance of Water Supply
System Revenue Bonds.
ORDINANCE NO. _____
CITY OF MUSKEGON
AN ORDINANCE TO PROVIDE FOR THE ACQUISITION, CONSTRUCTION,
INSTALLATION, FURNISHING AND EQUIPPING OF ADDITIONS AND
IMPROVEMENTS TO THE WATER SUPPLY SYSTEM OF THE CITY; TO
PROVIDE FOR THE ISSUANCE AND SALE OF JUNIOR LIEN REVENUE
BONDS TO PAY THE COST THEREOF; TO PROVIDE FOR THE
COLLECTION OF REVENUES FROM THE SYSTEM SUFFICIENT FOR THE
PURPOSE OF PAYING THE COSTS OF OPERATION AND MAINTENANCE
OF THE SYSTEM AND TO PAY THE PRINCIPAL OF AND INTEREST ON
THE BONDS AND CERTAIN OUTSTANDING BONDS OF THE SYSTEM; TO
PROVIDE FOR THE SEGREGATION AND DISTRIBUTION OF SYSTEM
REVENUES; TO PROVIDE FOR THE RIGHTS OF THE HOLDERS OF THE
BONDS IN ENFORCEMENT THEREOF; TO ESTABLISH SEPARATE
SERIES OF BONDS OF SENIOR AND SUBORDINATE STATUS WITH
RESPECT TO THE NET REVENUES OF THE SYSTEM; TO PRESCRIBE THE
FORM OF THE BONDS; AND TO PROVIDE FOR OTHER MATTERS
RELATING TO THE BONDS AND THE SYSTEM.
THE CITY OF MUSKEGON ORDAINS:
Section 1. Definitions. Whenever used in this Ordinance, except when otherwise indicated
by the context, the following terms shall have the following meanings:
(a) “Act 94” means Act 94, Public Acts of Michigan, 1933, as amended.
(b) “Adjusted Net Revenues” means for any operating year the excess of
revenues over expenses for the System determined in accordance with generally accepted
accounting principles, to which shall be added depreciation, amortization, interest expense
on Bonds and payments to the City in lieu of taxes, to which may be made the following
adjustments.
(i) Revenues may be augmented by the amount of any rate increases
adopted prior to the issuance of additional Bonds or to be placed into effect before
the time principal or interest on the additional Bonds becomes payable from
Revenues as applied to quantities of service furnished during the operating year or
portion thereof that the increased rates were not in effect.
(ii) Revenues may be augmented by amounts which may be derived
from rates and charges to be paid by new customers of the System.
(c) “Authority” means the Michigan Finance Authority or its successor.
(d) “Authorized Officers” means the Mayor, the City Manager, the City Clerk
and the Finance Director of the City.
(e) “Bonds” or “Senior Lien Bonds” means any bonds or series of bonds so
designated and payable from Net Revenues, which are secured by a statutory first lien on
the Net Revenues established by this Ordinance and which are senior and superior in all
respects with respect to the Net Revenues to any Junior Lien Bonds secured by the statutory
second lien established by this Ordinance, together with any additional Bonds of equal
standing thereafter issued.
(f) “City” or “Issuer” means the City of Muskegon, County of Muskegon, State
of Michigan.
(g) “EGLE” means the means the Michigan Department of Environment, Great
Lakes, and Energy, or its successor.
(h) “Engineers” means Prein & Newhof, registered engineers of Grand Rapids,
Michigan.
(i) “Junior Lien Bonds” means Series 2019 Bond, the Outstanding Junior Lien
Bonds any additional bonds of equal standing with the Series 2019 Bond and the
Outstanding Junior Lien Bonds which are secured by a statutory second lien on the Net
Revenues and are junior and subordinate to the Senior Lien Bonds.
(j) “Outstanding Junior Lien Bonds” means the Series 2004 Bonds.
(k) “Outstanding Ordinance” means Ordinance No. 2117 of the City.
(l) “Project” means the acquisition, construction, furnishing and equipping of
improvements to the Water Supply System of the City, including distribution system
improvements, replacement of water mains and service lines and treatment plant
improvements, together with all related appurtenances and attachments.
(m) “Purchase Contract” means the Purchase Contract to be entered into
between the Authority and the City relating to the purchase by the Authority of the Series
2019 Bond.
(n) “Revenues” and “Net Revenues” shall mean the revenues and net revenues
of the City derived from the operation of the System and shall be construed as defined in
Section 3 of Act 94, including with respect to “Revenues,” the earnings derived from the
investment of moneys in the various funds and accounts established by the Outstanding
Ordinance and this Ordinance.
(o) “Series 2004 Bond” means the Water Supply System Junior Lien Revenue
Bond (Limited Tax General Obligation), Series 2004, dated March 25, 2004, in the
outstanding principal amount of Five Million Five Hundred Forty-Five Thousand Dollars
($5,545,000).
(p) “Series 2019 Bond” means the Water Supply System Junior Lien Revenue
Bond, Series 2019, of the City in the principal amount of not to exceed Two Million Dollars
($2,000,000) authorized by this Ordinance.
2
(q) “Sufficient Government Obligations” means direct obligations of the
United States of America or obligations the principal and interest on which is fully
guaranteed by the United States of America, not redeemable at the option of the issuer, the
principal and interest payments upon which without reinvestment of the interest, come due
at such times and in such amounts as to be fully sufficient to pay the interest as it comes
due on the Bonds or Junior Lien Bonds and the principal and redemption premium, if any,
on the Bonds or Junior Lien Bonds as it comes due whether on the stated maturity date or
upon earlier redemption. Securities representing such obligations shall be placed in trust
with a bank or trust company, and if any of the Bonds or Junior Lien Bonds are to be called
for redemption prior to maturity, irrevocable instructions to call the Bonds for redemption
shall be given to the paying agent.
(r) “Supplemental Agreement” means the supplemental agreement among the
City, the Authority and the EGLE relating to the Series 2019 Bond.
(s) “System” means the Water Supply System of the City, including the Project
and all additions, extensions and improvements hereafter acquired.
Section 2. Necessity; Approval of Plans and Specifications. It is hereby determined to be
a necessary public purpose of the City to acquire and construct the Project in accordance with the
plans and specifications prepared by the Engineers, which plans and specifications are hereby
approved. The Project qualifies for the Drinking Water Revolving Fund financing program being
administered by the EGLE and the Authority, whereby bonds of the City are sold to the Authority
and bear interest at a fixed rate of not to exceed two and one-half percent (2.50%) per annum.
Section 3. Costs; Useful Life. The cost of the Project is estimated to be an amount not to
exceed Two Million Dollars ($2,000,000), including the payment of incidental expenses as
specified in Section 4 of this Ordinance, which estimate of cost is hereby approved and confirmed.
The period of usefulness of the Project is estimated to be not less than twenty-five (25) years.
Section 4. Payment of Cost; Bonds Authorized. To pay part of the cost of acquiring the
Project, legal, engineering, financial and other expenses incident thereto and incident to the
issuance and sale of the Series 2019 Bond, the City shall borrow the sum of not to exceed Two
Million Dollars ($2,000,000), and issue the Series 2019 Bond therefor pursuant to the provisions
of Act 94. The remaining cost of the Project, if any, shall be defrayed from grant funds and City
funds on hand and legally available for such use.
Except as amended by or expressly provided to the contrary in this Ordinance, all of the
provisions of the Outstanding Ordinance shall apply to the Series 2019B Bonds issued pursuant to
this Ordinance, the same as though each of said provisions were repeated in this Ordinance in
detail; the purpose of this Ordinance being to authorize the issuance of additional revenue bonds
of junior and subordinate standing and priority of lien to any Outstanding Senior Lien Bonds and
of equal standing and priority of lien as to the Net Revenues with the Outstanding Junior Lien
Bonds to finance the cost of acquiring additions, extensions and improvements to the System,
additional bonds of junior and subordinate standing and priority of lien as to the Outstanding
Senior Lien Bonds for such purpose being authorized by the provisions of the Outstanding
Ordinance, upon the conditions therein stated, which conditions have been fully met.
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Section 5. Issuance of Series 2019 Bond; Details. The Series 2019 Bond of the City, to be
designated WATER SUPPLY SYSTEM JUNIOR LIEN REVENUE BOND, SERIES 2019 is
authorized to be issued in the aggregate principal sum of not to exceed Two Million Dollars
($2,000,000) or such lesser amount as finally determined by order of the EGLE for the purpose of
paying part of the cost of the Project, including the costs incidental to the issuance, sale and
delivery of the Series 2019 Bond. The Series 2019 Bond shall be payable out of the Net Revenues,
as set forth more fully in Section 8 hereof.
The Series 2019 Bond shall be in the form of a single fully-registered, nonconvertible bond
of the denomination of the full principal amount thereof, dated as of the date of delivery, payable
in principal installments as finally determined by the order of the EGLE at the time of sale of the
Series 2019 Bond and approved by the Authority and an Authorized Officer. Principal installments
of the Series 2019 Bond shall be payable on April 1 of the years 2021 through 2040, inclusive, or
such other payment dates as hereinafter provided. Interest on the Series 2019 Bond shall be
payable on April 1 and October 1 of each year, commencing April 1, 2020 or on such other interest
payment dates as hereinafter provided. Final determination of the principal amount of and interest
on the Series 2019 Bond and the payment dates and amounts of principal installments of the Series
2019 Bond shall be evidenced by execution of the Purchase Contract and each of the Authorized
Officers is authorized and directed to execute and deliver the Purchase Contract when in final form
and to make the determinations set forth above; provided, however, that the first principal
installment shall be due no earlier than April 1, 2020 and the final principal installment shall be
due no later than October 1, 2041 and that the total principal amount shall not exceed $2,000,000.
The Series 2019 Bond shall bear interest at a rate of not to exceed two and one-half percent
(2.50%) per annum on the par value thereof or such other rate as evidenced by execution of the
Purchase Contract, but in any event not to exceed the rate permitted by law, and any Authorized
Officers as shall be appropriate shall deliver the Series 2019 Bond in accordance with the delivery
instructions of the Authority.
The principal amount of the Series 2019 Bond is expected to be drawn down by the City
periodically, and interest on principal amount shall accrue from the date such principal amount is
drawn down by the City.
The Series 2019 Bond shall not be convertible or exchangeable into more than one fully-
registered bond. Principal of and interest on the Series 2019 Bond shall be payable as provided in
the Series 2019 Bond form in this Ordinance.
The Series 2019 Bond shall be subject to optional redemption by the City with the prior
written approval of the Authority and on such terms as may be required by the Authority.
The Treasurer shall record on the registration books payment by the City of each
installment of principal or interest or both when made and the cancelled checks or other records
evidencing such payments shall be returned to and retained by the Treasurer.
Upon payment by the City of all outstanding principal of and interest on the Series 2019
Bond, the Authority shall deliver the Series 2019 Bond to the City for cancellation.
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Section 6. Execution of Series 2019 Bond. The Series 2019 Bond shall be signed by the
manual or facsimile signature of the Mayor and countersigned by the manual or facsimile signature
of the City Clerk and shall have the corporate seal of the City or facsimile thereof impressed
thereon. The Series 2019 Bond bearing the manual or facsimile signatures of the Mayor and the
City Clerk sold to the Authority shall require no further authentication.
Section 7. Registration and Transfer. Any Bond or Junior Lien Bond may be transferred
upon the books required to be kept pursuant to this section by the person in whose name it is
registered, in person or by the registered owner’s duly authorized attorney, upon surrender of the
Bond or Junior Lien Bond for cancellation, accompanied by delivery of a duly executed written
instrument of transfer in a form approved by the transfer agent. Whenever any Bond or Junior
Lien Bond shall be surrendered for transfer, the City shall execute and the transfer agent shall
authenticate and deliver a new Bond or Junior Lien Bond, for like aggregate principal amount.
The transfer agent shall require payment by the bondholder requesting the transfer of any tax or
other governmental charge required to be paid with respect to the transfer. The City shall not be
required (i) to issue, register the transfer of or exchange any Bond or Junior Lien Bond during a
period beginning at the opening of business 15 days before the day of the giving of a notice of
redemption of Bonds selected for redemption as described in the form of Series 2019 Bond
contained in Section 18 of this Ordinance and ending at the close of business on the day of that
giving of notice, or (ii) to register the transfer of or exchange any Bond or Junior Lien Bond so
selected for redemption in whole or in part, except the unredeemed portion of Bonds or Junior
Lien Bonds being redeemed in part. The City shall give the transfer agent notice of call for
redemption at least 20 days prior to the date notice of redemption is to be given.
The transfer agent shall keep or cause to be kept at its principal office sufficient books for
the registration and transfer of the Bonds or Junior Lien Bond, which shall at all times be open to
inspection by the City; and upon presentation for such purpose the transfer agent shall under such
reasonable regulations as it may prescribe transfer or cause to be transferred on said books Bonds
or Junior Lien Bond as hereinbefore provided.
If any Bond or Junior Lien Bond shall become mutilated, the City, at the expense of the
holder of the Bond, shall execute, and the transfer agent shall authenticate and deliver, a new Bond
or Junior Lien Bond of like tenor in exchange and substitution for the mutilated Bond or Junior
Lien Bond, upon surrender to the transfer agent of the mutilated Bond or Junior Lien Bond. If any
Bond or Junior Lien Bond issued under this Ordinance shall be lost, destroyed or stolen, evidence
of the loss, destruction or theft may be submitted to the transfer agent and, if this evidence is
satisfactory to both and indemnity satisfactory to the transfer agent shall be given, and if all
requirements of any applicable law including Act 354, Public Acts of Michigan, 1972, as amended
(“Act 354”), being sections 129.131 to 129.135, inclusive, of the Michigan Compiled Laws have
been met, the City, at the expense of the owner, shall execute, and the transfer agent shall thereupon
authenticate and deliver, a new Bond or Junior Lien Bond of like tenor and bearing the statement
required by Act 354, or any applicable law hereafter enacted, in lieu of and in substitution for the
Bond or Junior Lien Bond so lost, destroyed or stolen. If any such Bond or Junior Lien Bond shall
have matured or shall be about to mature, instead of issuing a substitute Bond or Junior Lien Bond
the transfer agent may pay the same without surrender thereof.
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Section 8. Payment of Series 2019 Bond; Security; Priority of Lien. Any Bonds hereafter
issued and the interest thereon shall be payable solely from the Net Revenues, and to secure such
payment, there is hereby created a statutory lien upon the whole of the Net Revenues which shall
be a first lien to continue until payment in full of the principal of and interest on all Bonds payable
from the Net Revenues, or, until sufficient cash or Sufficient Government Obligations have been
deposited in trust for payment in full of all Bonds of a series then outstanding, principal and interest
on such Bonds to maturity, or, if called for redemption, to the date fixed for redemption together
with the amount of the redemption premium, if any.
Any Junior Lien Bonds issued hereunder, including the Series 2019 Bond, and the interest
thereon shall be payable solely from the Net Revenues, and to secure such payment, there is hereby
recognized the statutory lien upon the whole of the Net Revenues which shall be a second lien,
subject only to the statutory first lien established with respect to the Senior Lien Bonds, to continue
until payment in full of the principal of and interest on all Junior Lien Bonds payable from the Net
Revenues, or, until sufficient cash or Sufficient Government Obligations have been deposited in
trust for payment in full of all Junior Lien Bonds of a series then outstanding, principal and interest
on such Junior Lien Bonds to maturity, or, if called for redemption, to the date fixed for redemption
together with the amount of the redemption premium, if any. The statutory lien on the Net
Revenues created with respect to the Junior Lien Bonds (including the Series 2019 Bond) shall at
all times be and remain subordinate and inferior to the pledge of Net Revenues and the statutory
first lien thereon authorized to be granted to secure any Senior Lien Bonds hereafter issued.
Upon deposit of cash or Sufficient Government Obligations, as provided in the previous
sentences, the statutory lien shall be terminated with respect to that series of Bonds or Junior Lien
Bonds, the holders of that series shall have no further rights under this Ordinance except for
payment from the deposited funds, and the Bonds or Junior Lien Bonds of that series shall no
longer be considered to be outstanding under the Outstanding Ordinance or this Ordinance.
Section 9. Bondholders’ Rights; Receiver. The holder or holders of the Bonds or Junior
Lien Bonds representing in the aggregate not less than twenty percent (20%) of the entire principal
amount thereof then outstanding, may, by suit, action, mandamus or other proceedings, protect
and enforce the statutory lien upon the Net Revenues of the System, and may, by suit, action,
mandamus or other proceedings, enforce and compel performance of all duties of the officers of
the City, including the fixing of sufficient rates, the collection of Revenues, the proper segregation
of the Revenues of the System and the proper application thereof. The statutory lien upon the Net
Revenues, however, shall not be construed as to compel the sale of the System or any part thereof.
If there is a default in the payment of the principal of or interest on the Bonds or the Junior
Lien Bonds, any court having jurisdiction in any proper action may appoint a receiver to administer
and operate the System on behalf of the City and under the direction of the court, and by and with
the approval of the court to perform all of the duties of the officers of the City more particularly
set forth herein and in Act 94.
The holder or holders of the Bonds and the Junior Lien Bonds shall have all other rights
and remedies given by Act 94 and law, for the payment and enforcement of the Bonds and the
Junior Lien Bonds and the security therefor.
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Section 10. Management; Fiscal Year. The operation, repair and management of the
System and the acquisition and construction of the Project shall be under the supervision and
control of the City Commission. The City Commission, in accordance with the relevant provisions
of the City Charter, may employ such person or persons in such capacity or capacities as it deems
advisable to carry on the efficient management and operation of the System. The City Commission
may make such rules and regulations as it deems advisable and necessary to assure the efficient
management and operation of the System. The fiscal year of the System shall be the fiscal year of
the City.
Section 11. Rates and Charges. The rates and charges for service furnished by and the use
of the System and the methods of collection and enforcement of the collection of the rates shall be
those in effect on the date of adoption of this Ordinance.
Section 12. No Free Service or Use. No free service or use of the System, or service or
use of the System at less than cost, shall be furnished by the System to any person, firm or
corporation, public or private, or to any public agency or instrumentality, including the City.
Section 13. Fixing and Revising Rates; Rate Covenant. The rates now in effect are
estimated to be sufficient to provide for the payment of the expenses of administration and
operation and such expenses for maintenance of the System as are necessary to preserve the System
in good repair and working order, to provide for the payment of the principal of and interest on the
Bonds and the Junior Lien Bonds as the same become due and payable, and the maintenance of
the reserve therefor and to provide for all other obligations, expenditures and funds for the System
required by law and this Ordinance. In addition, it is agreed that the rates shall be set from time
to time so that there shall be produced each fiscal year Net Revenues in an amount not less than
110% of the principal of and interest on all Bonds coming due in each fiscal year and not less than
100% of the principal of and interest on all Junior Lien Bonds coming due in each fiscal year. The
rates shall be fixed and revised from time to time as may be necessary to produce these amounts,
and it is hereby covenanted and agreed to fix and maintain rates for services furnished by the
System at all times sufficient to provide for the foregoing.
Section 14. Funds and Accounts; Flow of Funds. Commencing on July 1, 2019, all
funds belonging to the System shall be transferred as herein indicated and all Revenues of the
System shall be set aside as collected and credited to a fund to be designated WATER SUPPLY
SYSTEM RECEIVING FUND (the “Receiving Fund”). In addition, on July 1, 2019, all Revenues
in any accounts of the System shall be transferred to the Receiving Fund and credited to the funds
and accounts as provided in this section. The Revenues credited to the Receiving Fund are pledged
for the purpose of the following funds and shall be transferred or debited from the Receiving Fund
periodically in the manner and at the times and in the order of priority hereinafter specified:
A. OPERATION AND MAINTENANCE ACCOUNT:
Out of the Revenues credited to the Receiving Fund there shall be first set aside in,
or credited to, a fund designated OPERATION AND MAINTENANCE ACCOUNT (the
“Operation and Maintenance Account”), monthly a sum sufficient to provide for the
payment of the next month’s expenses of administration and operation of the System and
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such current expenses for the maintenance thereof as may be necessary to preserve the
same in good repair and working order.
A budget, showing in detail the estimated costs of administration, operation and
maintenance of the System for the next ensuing operating year, shall be prepared by the
City at least 30 days prior to the commencement of each ensuing operating year. No
payments shall be made to the City from moneys credited to the Operation and
Maintenance Account except for services directly rendered to the System by the City or its
personnel.
B. BOND AND INTEREST REDEMPTION ACCOUNT:
There shall be established and maintained a separate depositary fund designated
BOND AND INTEREST REDEMPTION ACCOUNT (the “Redemption Account”), the
moneys on deposit therein from time to time to be used solely for the purpose of paying
the principal of, redemption premiums (if any) and interest on the Bonds. The moneys in
the Redemption Account shall be kept on deposit with the bank or trust company where
the principal of and interest on the Bonds, or any series thereof, are payable.
Out of the Revenues remaining in the Receiving Fund, after provision for the
Operation and Maintenance Account, there shall be set aside in the Redemption Account
each month, commencing with the date of issue of a series of Bonds, a sum proportionately
sufficient to provide for the payment when due of the then current principal of and interest
on the Bonds, less any amount in the Redemption Account representing accrued interest
on the Bonds or investment income on amounts on deposit in the Redemption Account.
Commencing with the date of issue of a series of Bonds, the amount set aside each month
for interest on the Bonds shall be the fractional amount of the total amount of interest on
the Bonds next coming due derived from the number of months from the date of issue of
the Bonds to the first interest payment date. Commencing with the first interest payment
date, the amount set aside each month for interest on the Bonds shall be 1/6 of the total
amount of interest on the Bonds next coming due. The amount set aside each month for
principal, commencing with the date of issue of a series of Bonds, shall be the fractional
amount of the total amount of principal on the Bonds next coming due by maturity or
sinking fund redemption derived from the number of months from the date of issue of the
Bonds to the first principal payment date. The amount set aside each month for principal
payment commencing with the first principal payment date shall be 1/12 of the amount of
principal next coming due by maturity or sinking fund redemption. If there is any
deficiency in the amount previously set aside, that deficiency shall be added to the next
succeeding monthly requirements. The amount to be set aside for the payment of principal
and interest on any date shall not exceed the amount which, when added to the money on
deposit in the Redemption Account, including investment income thereon, is necessary to
pay principal and interest due on the Bonds on the next succeeding principal payment date.
C. JUNIOR LIEN BOND AND INTEREST REDEMPTION ACCOUNT:
There is hereby established and there shall be maintained a separate depositary
account designated JUNIOR LIEN BOND AND INTEREST REDEMPTION ACCOUNT
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(the “Junior Lien Redemption Account”). Except as otherwise provided herein, the
moneys on deposit therein from time to time shall be used for the purpose of paying the
principal or Redemption Price of and interest on any Junior Lien Bonds.
Out of the Revenues remaining in the Receiving Fund, after transfer, if required,
for deposit into the Operation and Maintenance Account and the Redemption Account,
there shall be set aside monthly in the Junior Lien Redemption Account a sum sufficient to
provide for the next payment when due of the principal of and interest on the Junior Lien
Bonds, less any amount in the Junior Lien Redemption Account representing accrued
interest on the Junior Lien Bonds, and less the sum of any funds actually on deposit in the
Junior Lien Redemption Account. The amount set aside and transferred to the Junior Lien
Redemption Account each month for interest on the Junior Lien Bonds shall be 1/6 of the
total amount of interest on the Junior Lien Bonds next coming due or such greater or lesser
amount as is necessary to assure that the amount set aside in the Junior Lien Redemption
Account as of the first of such month is not less than the product of (a) 1/6 of the amount
of interest next due on the Junior Lien Bonds times (b) the number of months elapsed since
and including the last interest payment date. For the month immediately prior to each
interest payment date the amount set aside and transferred to the Junior Lien Redemption
Account to pay interest shall be reduced by amounts, including investment earnings,
available in the Junior Lien Redemption Account which are available for such purpose.
The amount set aside and transferred to the Junior Lien Redemption Account each month
for principal commencing twelve months prior to the first maturity or mandatory sinking
fund redemption date shall be 1/12 of the amount of principal next coming due on the
Junior Lien Bonds by maturity or as a mandatory redemption requirement or such greater
or lesser amount as is necessary to assure that the amount set aside in the Junior Lien
Redemption Account as of the first of such month is not less than the product of 1/12 of
the amount of principal next due on the Junior Lien Bonds times (b) the number of months
elapsed since and including the last principal payment date. If there is any deficiency in
the amount previously set aside, that deficiency shall be added to the next succeeding
month’s requirement.
No further payments need be made into the Junior Lien Redemption Account after
enough of the principal installments of the Junior Lien Bonds have been retired so that the
amount then held in the Junior Lien Redemption Account (including a bond reserve
account, if any), is equal to the entire amount of principal and interest which will be payable
at the time of maturity of all the principal installments of the Bond then remaining
outstanding.
D. REPLACEMENT AND IMPROVEMENT FUND:
There shall next be established and maintained a fund, separate depositary account,
designated WATER SUPPLY SYSTEM REPLACEMENT ACCOUNT or such other
designation determined by the Treasurer (the “Replacement Account”), the money credited
thereto to be used solely for the purpose of making repairs and replacements to the System.
Out of the Revenues and moneys of the System remaining in the Receiving Fund each
month after provision has been made for the deposit of moneys in the Operation and
Maintenance Account, the Redemption Account and the Junior Lien Redemption Account,
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there may be deposited in the Replacement Account such additional funds as the City may
deem advisable. If at any time it shall be necessary to use moneys in the Replacement
Account for the purpose for which the Replacement Account was established, the moneys
so used shall be replaced from any moneys in the Receiving Fund which are not required
by this Ordinance to be used for the Operation and Maintenance Account, the Redemption
Account, or the Junior Lien Redemption Account.
E. GENERAL OBLIGATION DEBT ACCOUNT:
Out of the remaining Revenues in the Receiving Fund, there may be next set aside
in or credited to monthly after meeting the requirements of the foregoing Account, to an
account designated General Obligation Debt Account (the “G.O. Fund”), or from other
available moneys such sums as shall be necessary to pay debt service on presently existing
or future general obligation bond issues of the City or general obligations or contractual
obligations of the City incurred or to be incurred for System purposes.
F. SURPLUS MONEYS:
Thereafter, any Revenues in the Receiving Fund after satisfying all the foregoing
requirements of this Section may, at the discretion of the City, be used for any of the
following purposes:
1. Transferred to the Replacement Account.
2. Transferred to the Redemption Account and used for the purchase of Bonds
on the open market at not more than the fair market value thereof or used to redeem
Bonds prior to maturity pursuant to this Ordinance.
3. Any other use permitted by law.
Section 15. Priority of Funds. In the event the moneys in the Receiving Fund are
insufficient to provide for the current requirements of the Operation and Maintenance Account,
the Redemption Account, or the Junior Lien Redemption Account, any moneys or securities in
other funds of the System, except the proceeds of sale of the Bonds, shall be credited or transferred,
first, to the Operation and Maintenance Account, and second to the Redemption Account.
Section 16. Investments. Moneys in the funds and accounts established herein and moneys
derived from the proceeds of sale of the Bonds, may be invested by the City in United States of
America obligations or in obligations the principal of and interest on which is fully guaranteed by
the United States of America and any investments now or hereafter permitted by Act 94 or other
controlling law. Investment of moneys in the Redemption Account or the Junior Lien Redemption
Account being accumulated for payment of the next maturing principal or interest payment of the
Bonds or of the Junior Lien Bonds shall be limited to obligations bearing maturity dates prior to
the date of the next maturing principal or interest payment on the Bonds or the Junior Lien Bonds.
In the event investments are made, any securities representing the same shall be kept on deposit
with the bank or trust company having on deposit the fund or funds or account from which the
purchase was made. Profit realized or interest income earned on investment of funds in the Funds
established hereunder shall be deposited in or credited to the Fund having realized the profit or
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earned the interest (unless otherwise expressly provided in this Ordinance or as determined by the
City), such deposit or credit to occur periodically but not less often than at the end of each fiscal
year.
Section 17. Bond Proceeds. From the proceeds of the sale of the Series 2019 Bond there
shall be immediately deposited in the Junior Lien Redemption Account an amount equal to the
accrued interest and premium, if any, received on the delivery of the Series 2019 Bond. The
balance of the proceeds of the sale of the Series 2019 Bond shall be deposited in a bank or banks,
designated by the City, qualified to act as depository of the proceeds of sale under the provisions
of Act 94, in an account designated 2019 WATER SUPPLY SYSTEM PROJECT
CONSTRUCTION FUND (the “Construction Fund”). Moneys in the Construction Fund shall be
applied solely in payment of the cost of the Project, including any engineering, legal and other
expenses incident thereto and to the financing thereof.
Any unexpended balance of the proceeds of sale of the Series 2019 Bond remaining after
completion of the Project in the Construction Fund may, at the discretion of the City, be used for
further improvements, enlargements and extension to the System, if, at the time of such
expenditures, such use is approved by the Michigan Department of Treasury, if such permission
is then required by law. Any remaining balance after such expenditure shall be paid to the
Redemption Account and may be used for the purpose of purchasing the Series 2019 Bond on the
open market at not more than the fair market value thereof, but not more than the price at which
the Series 2019 Bond may next be called for redemption, or used for the purpose of paying
principal of the Series 2019 Bond upon maturity or calling the Series 2019 Bond for redemption.
Section 18. Bond Form. The Series 2019 Bond shall be in substantially the following form
with such changes or completion as necessary or appropriate to give effect to the intent of this
Ordinance and further subject to such modifications which may be required by the Michigan
Attorney General and the Authority and approved by bond counsel:
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UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF MUSKEGON
CITY OF MUSKEGON
WATER SUPPLY SYSTEM JUNIOR LIEN REVENUE BOND, SERIES 2019
REGISTERED OWNER: Michigan Finance Authority
PRINCIPAL AMOUNT: __________________ Dollars ($__________)
DATE OF ORIGINAL ISSUE: August 30, 2019
The CITY OF MUSKEGON, County of Muskegon, State of Michigan (the “City”), for
value received, hereby promises to pay, but only out of the hereinafter described Net Revenues of
the City’s Water Supply System (hereinafter defined), to the Michigan Finance Authority (the
“Authority”), or registered assigns, the Principal Amount shown above, or such portion thereof as
shall have been advanced to the City pursuant to a Purchase Contract between the City and the
Authority and a Supplemental Agreement by and among the City, the Authority and the State of
Michigan acting through the Department of Environmental Quality, in lawful money of the United
States of America, unless prepaid or reduced prior thereto as hereinafter provided.
During the time funds are being drawn down by the City under this Bond, the Authority
will periodically provide the City a statement showing the amount of principal that has been
advanced and the date of each advance, which statement shall constitute prima facie evidence of
the reported information; provided that no failure on the part of the Authority to provide such a
statement or to reflect a disbursement or the correct amount of a disbursement shall relieve the
City of its obligation to repay the outstanding principal amount actually advanced, all accrued
interest thereon, and any other amount payable with respect thereto in accordance with the terms
of this Bond.
The Principal Amount shall be payable on the dates and in the annual principal installment
amounts set forth on Schedule A attached hereto and made a part hereof, as such Schedule may be
adjusted if less than $________ is disbursed to the City or if a portion of the Principal Amount is
prepaid as provided below, with interest on said principal installments from the date each said
installment is delivered to the holder hereof until paid at the rate of two percent (2.00%) per annum.
Interest is first payable April 1, 2020 and semiannually thereafter and principal is payable on the
first day of April commencing April 1, 2021 (as identified in the Purchase Contract) and annually
thereafter.
Principal installments of this bond are subject to prepayment by the City prior to maturity
only with the prior written consent of the Authority and on such terms as may be required by the
Authority.
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Notwithstanding any other provision of this bond, so long as the Authority is the owner of
this bond, (a) this bond is payable as to principal, premium, if any, and interest at The Bank of
New York Mellon Trust Company, N.A. or at such other place as shall be designated in writing to
the City by the Authority (the "Authority's Depository"); (b) the City agrees that it will deposit
with the Authority's Depository payments of the principal of, premium, if any, and interest on this
bond in immediately available funds by 12:00 noon at least five business days prior to the date on
which any such payment is due whether by maturity, redemption or otherwise; in the event that
the Authority's Depository has not received the City's deposit by 12:00 noon on the scheduled day,
the City shall immediately pay to the Authority as invoiced by the Authority an amount to recover
the Authority's administrative costs and lost investment earnings attributable to that late payment;
and (c) written notice of any redemption of this bond shall be given by the City and received by
the Authority's Depository at least 40 days prior to the date on which such redemption is to be
made.
Additional Interest
In the event of a default in the payment of principal or interest hereon when due, whether
at maturity, by redemption or otherwise, the amount of such default shall bear interest (the
“additional interest”) at a rate equal to the rate of interest which is two percent above the
Authority’s cost of providing funds (as determined by the Authority) to make payment on the
bonds of the Authority issued to provide funds to purchase this bond but in no event in excess of
the maximum rate of interest permitted by law. The additional interest shall continue to accrue
until the Authority has been fully reimbursed for all costs incurred by the Authority (as determined
by the Authority) as a consequence of the City’s default. Such additional interest shall be payable
on the interest payment date following demand of the Authority. In the event that (for reasons
other than the default in the payment of any municipal obligation purchased by the Authority) the
investment of amounts in the reserve account established by the Authority for the bonds of the
Authority issued to provide funds to purchase this bond fails to provide sufficient available funds
(together with any other funds which may be made available for such purpose) to pay the interest
on outstanding bonds of the Authority issued to fund such account, the City shall and hereby agrees
to pay on demand only the City’s pro rata share (as determined by the Authority) of such deficiency
as additional interest on this bond.
For prompt payment of principal and interest on this bond, the City has irrevocably pledged
the revenues of the Water Supply System of the City, including all appurtenances, extensions and
improvements thereto (the “System”), after provision has been made for reasonable and necessary
expenses of operation, maintenance and administration (the “Net Revenues”), and a statutory
second lien thereon is hereby recognized and created, subject to the senior lien of any additional
Bonds of the City hereafter issued by the City, as set forth in the Ordinance (hereinafter defined).
The Bonds of this issue are of equal standing and priority of lien as to the Net Revenues with the
City’s Water Supply System Revenue Bonds, Series 2004 (the “Outstanding Junior Lien Bonds”)
and any additional bonds hereafter issued by the City of equal standing and priority with the
Outstanding Junior Lien Bonds. The City has reserved the right to issue such additional Bonds
which shall be superior and senior in all respects to the bonds of this issue as to the Net Revenues.
Purchasers of the bonds of this issue, by their acceptance of the bonds of this issue or a
beneficial ownership interest therein, shall be deemed to have consented to the subordination of
13
their interest in and lien upon the Net Revenues upon the issuance of Bonds subsequent to the
delivery of the bonds of this issue.
This bond is a single, fully-registered, non-convertible bond in the principal sum indicated
above issued pursuant to Ordinance No. 2117 and ___ (the “Ordinances”) duly adopted by the City
Commission of the City, and under and in full compliance with the Constitution and statutes of the
State of Michigan, including specifically Act 94, Public Acts of Michigan, 1933, as amended, for
the purpose of paying part of the cost of acquiring and constructing additions, extensions and
improvements to the System.
For a complete statement of the revenues from which and the conditions under which this
bond is payable, a statement of the conditions under which additional bonds of superior and equal
standing may hereafter be issued and the general covenants and provisions pursuant to which this
bond is issued, reference is made to the above-described Ordinances.
This bond is a self-liquidating bond, payable, both as to principal and interest, solely and
only from the Net Revenues of the System. The principal of and interest on this bond are secured
by the statutory lien hereinbefore mentioned.
The City has covenanted and agreed, and does hereby covenant and agree, to fix and
maintain at all times while any bonds payable from the Net Revenues of the System shall be
outstanding, such rates for service furnished by the System as shall be sufficient to provide for
payment of the interest upon and the principal of the bonds of this issue, any additional Bonds, and
any additional Junior Lien Bonds, as and when the same shall become due and payable, and to
maintain a bond redemption fund (including a bond reserve account, if any) therefor, to provide
for the payment of expenses of administration and operation and such expenses for maintenance
of the System as are necessary to preserve the same in good repair and working order, and to
provide for such other expenditures and funds for the System as are required by said Ordinances.
This bond is transferable only upon the books of the City by the registered owner in person
or the registered owner’s attorney duly authorized in writing, upon the surrender of this bond
together with a written instrument of transfer satisfactory to the transfer agent, duly executed by
the registered owner or the registered owner’s attorney duly authorized in writing, and thereupon
a new bond or bonds in the same aggregate principal amount and of the same maturity shall be
issued to the transferee in exchange therefor as provided in the Ordinances, and upon payment of
the charges, if any, therein prescribed.
It is hereby certified and recited that all acts, conditions and things required by law to be
done precedent to and in the issuance of this bond have been done and performed in regular and
due time and form as required by law.
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IN WITNESS WHEREOF, the City of Muskegon, County of Muskegon, State of
Michigan, by its City Commission has caused this bond to be executed with the manual or
facsimile signatures of its Mayor and its City Clerk and the corporate seal of the City to be
impressed or imprinted hereon, all as of the Date of Original Issue.
CITY OF MUSKEGON
By_________________________________
Mayor
(Seal)
Countersigned:
By____________________________
City Clerk
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EGLE Project Number: 7449-01
EGLE Approved Amt: $2,000,000
SCHEDULE A
Based on the schedule provided below unless revised as provided in this paragraph, repayment of the
principal of the bond shall be made until the full amount advanced to the City is repaid. In the event the Order of
Approval issued by the Department of Environment, Great Lakes and Energy (the “Order”), approves a principal amount
of assistance less than the amount of the bond delivered to the Authority, the Authority shall only disburse principal
up to the amount stated in the Order. In the event (1) that the payment schedule approved by the City and described
below provides for payment of a total principal amount greater than the amount of assistance approved by the Order
or (2) that less than the principal amount of assistance approved by the Order is disbursed to the City by the Authority,
or (3) that any portion of the principal amount of assistance approved by the Order and disbursed to the City is forgiven
pursuant to the Order, the Authority shall prepare a new payment schedule which shall be effective upon receipt by
the City.
Maturity Date Principal Amount
April 1, 2021 $80,000
April 1, 2022 85,000
April 1, 2023 85,000
April 1, 2024 85,000
April 1, 2025 90,000
April 1, 2026 90,000
April 1, 2027 95,000
April 1, 2028 95,000
April 1, 2029 95,000
April 1, 2030 100,000
April 1, 2031 100,000
April 1, 2032 100,000
April 1, 2033 105,000
April 1, 2034 105,000
April 1, 2035 110,000
April 1, 2036 110,000
April 1, 2037 115,000
April 1, 2038 115,000
April 1, 2039 120,000
April 1, 2040 120,000
Interest on the bond shall accrue on that portion of principal disbursed by the Authority to the City which has
not been forgiven pursuant to the Order from the date such portion is disbursed, until paid, at the rate of 2.00% per
annum, payable April 1, 2020, and semi-annually thereafter.
The City agrees that it will deposit with the Authority’s Depository, or such other place as shall be designated
in writing to the City by the Authority payments of the principal of, premium, if any, and interest on this bond in
immediately available funds by 12:00 noon at least five business days prior to the date on which any such payment is
due whether by maturity, redemption or otherwise. In the event that the Authority’s Depository has not received the
City’s deposit by 12:00 noon on the scheduled day, the City shall immediately pay to the Authority as invoiced by the
Authority an amount to recover the Authority’s administrative costs and lost investment earnings attributable to that
late payment.
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Section 19. General Covenants. The City covenants and agrees with the holders of the
Bonds that so long as any of the Bonds remain outstanding and unpaid as to either principal or
interest:
(a) The City will maintain the System in good repair and working order and
will operate the same efficiently and will faithfully and punctually perform all duties with
reference to the System required by the Constitution and laws of the State of Michigan and
this Ordinance.
(b) The City will keep proper books of record and account separate from all
other records and accounts of the City, in which shall be made full and correct entries of
all transactions relating to the System. The City shall have an annual audit of the books of
record and account of the System for the preceding operating year made each year by an
independent certified public accountant. The auditor shall comment on the manner in
which the City is complying with the requirements of the Ordinance with respect to setting
aside and investing moneys and meeting the requirements for acquiring and maintaining
insurance. The audit shall be completed and so made available not later than six (6) months
after the close of each operating year except as such period may be extended in
conformance with the rules of the Michigan Department of Treasury.
(c) The City will maintain and carry, for the benefit of the holders of the Bonds,
insurance on all physical properties of the System and liability insurance, of the kinds and
in the amounts normally carried by municipalities engaged in the operation of water supply
and Water Supply system, including self-insurance. All moneys received for losses under
any such insurance policies shall be applied solely to the replacement and restoration of
the property damaged or destroyed, and to the extent not so used, shall be used for the
purpose of redeeming or purchasing Bonds.
(d) The City will not sell, lease or dispose of the System, or any substantial part,
until all of the Bonds and Junior Lien Bonds have been paid in full, both as to principal and
interest or provision made thereof as herein provided. The City will operate the System as
economically as possible, will make all repairs and replacements necessary to keep the
System in good repair and working order, and will not do or suffer to be done any act which
would affect the System in such a way as to have a material adverse effect on the security
for the Bonds and the Junior Lien Bonds.
(e) The City will not grant any franchise or other rights to any person, firm or
corporation to operate a System that will compete with the System and the City will not
operate a system that will compete with the System.
(f) The City will cause the Project to be acquired and constructed promptly and
in accordance with the plans and specification therefor.
Section 20. Additional Bonds. Except as hereinafter provided, the City shall not issue
additional Bonds of equal or prior standing with any initial series of Bonds issued hereunder.
17
The right is reserved in accordance with the provisions of Act 94, to issue additional Bonds
or Junior Lien Bonds payable from the Revenues of the System which shall be of equal standing
and priority of lien on the Net Revenues of the System with the Bonds or Junior Lien Bonds but
only for the following purposes and under the following terms and conditions:
(a) To complete the Project in accordance with the plans and specifications
therefor. Such bonds shall not be authorized unless the engineers in charge of construction
shall execute a certificate evidencing the fact that additional funds are needed to complete
the Project in accordance with the plans and specifications therefor and stating the amount
that will be required to complete the Project. If such certificate shall be so executed and
filed with the City, it shall be the duty of the City to provide for and issue additional revenue
bonds in the amount stated in said certificate to be necessary to complete the Project in
accordance with the plans and specifications plus an amount necessary to issue such bonds
or to provide for part or all of such amount from other sources.
(b) For subsequent repairs, extensions, enlargements and improvements to the
System or for the purpose of refunding part or all of the Bonds or Junior Lien Bonds then
outstanding and paying costs of issuing such additional Bonds or Junior Lien Bonds.
Bonds or Junior Lien Bonds for such purposes shall not be issued pursuant to this
subparagraph (b) unless the Adjusted Net Revenues of the System for the preceding twelve-
month operating year shall be equal to at least one hundred percent (100%) of the maximum
amount of principal and interest thereafter maturing in any operating year on the then
outstanding Bonds or Junior Lien Bonds and on the additional Bonds then being issued. If
the additional Bonds or Junior Lien Bonds are to be issued in whole or in part for refunding
outstanding Bonds or Junior Lien Bonds, the annual principal and interest requirements
shall be determined by deducting from the principal and interest requirements for each
operating year the annual principal and interest requirements of any Bonds or Junior Lien
Bonds to be refunded from the proceeds of the additional Bonds or Junior Lien Bonds. For
purposes of this subparagraph (b) the City may elect to use as the last preceding operating
year any operating year ending not more than sixteen months prior to the date of delivery
of the additional Bonds or Junior Lien Bonds and as the next to the last preceding operating
year, any operating year ending not more than twenty-eight months prior to the date of
delivery of the additional Bonds or Junior Lien Bonds. Determination by the City as to
existence of conditions permitting the issuance of additional Bonds or Junior Lien Bonds
shall be conclusive. No additional Bonds or Junior Lien Bonds of equal standing as to the
Net Revenues of the System shall be issued pursuant to the authorization contained in this
subparagraph if the City shall then be in default in making its required payments to the
Operation and Maintenance Account or the Redemption Account.
(c) For refunding a part or all of the Bonds or Junior Lien Bonds then
outstanding and paying costs of issuing such additional Bonds or Junior Lien Bonds
including deposits which may be required to be made to a bond reserve account (if any) for
such Bonds or Junior Lien Bonds. No additional Bonds or Junior Lien Bonds shall be
issued pursuant to this subsection unless the maximum amount of principal and interest
maturing in any operating year after giving effect to the refunding shall be less than the
maximum amount of principal and interest maturing in any operating year prior to giving
effect to the refunding.
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Section 21. Negotiated Sale; Application to EGLE and Authority; Execution of
Documents. The City determines that it is in the best interest of the City to negotiate the sale of
the Series 2019 Bond to the Authority because the Drinking Water Revolving Fund financing
programs provide significant interest savings to the City compared to competitive sale in the
municipal bond market. The Authorized Officers are hereby authorized to make application to the
Authority and to the EGLE for placement of the Series 2019 Bond with the Authority. The actions
taken by the Authorized Officers with respect to the Series 2019 Bond prior to the adoption of this
Ordinance are ratified and confirmed. The Authorized Officers are authorized to execute and
deliver the Purchase Contract, the Supplemental Agreement and the Issuer’s Certificate. Any
Authorized Officers is further authorized to execute and deliver such contracts, documents and
certificates as are necessary or advisable to qualify the Series 2019 Bond for the Drinking Water
Revolving Fund. Prior to the delivery of the Series 2019 Bond to the Authority, any Authorized
Officer is hereby authorized to make such changes to the form of the Series 2019 Bond contained
in Section 18 of this Ordinance as may be necessary to conform to the requirements of Act 227,
Public Acts of Michigan 1985, as amended (“Act 227”), including, but not limited to changes in
the principal maturity and interest payment dates and references to additional security required by
Act 227.
Section 22. Covenant Regarding Tax Exempt Status of the Bonds. The City shall, to the
extent permitted by law, take all actions within its control necessary to maintain the exemption of
the interest on the Series 2019 Bond from general federal income taxation (as opposed to any
alternative minimum or other indirect taxation) under the Internal Revenue Code of 1986, as
amended (the “Code”), including, but not limited to, actions relating to any required rebate of
arbitrage earnings and the expenditure and investment of Series 2019 Bond proceeds and moneys
deemed to be Bond proceeds.
Section 23. Approval of Bond Counsel. The representation of the City by Miller, Canfield,
Paddock and Stone, P.L.C. (“Miller Canfield”), as bond counsel is hereby approved,
notwithstanding the representation by Miller Canfield of the Authority in connection with its
financing programs and borrowings.
Section 24. Approval of Bond Details. The Authorized Officers are each hereby
authorized to adjust the final bond details set forth herein to the extent necessary or convenient to
complete the transaction authorized herein, and in pursuance of the foregoing is authorized to
exercise the authority and make the determinations authorized pursuant to Section 7a(1)(c) of Act
94, including but not limited to determinations regarding interest rates, prices, discounts,
maturities, principal amounts, denominations, dates of issuance, interest payment dates,
redemption rights, the place of delivery and payment, and other matters, provided that the principal
amount of Series 2019 Bond issued shall not exceed the principal amount authorized in this
Ordinance, the interest rate per annum on the Series 2019 Bond shall not exceed two and one-half
percent (2.50%) per annum, and the Series 2019 Bond shall mature in not more than twenty (20)
annual installments.
Section 25. Savings Clause. All ordinances, resolutions or orders, or part thereof, in
conflict with the provisions of this Ordinance are, to the extent of such conflict, repealed.
19
Section 26. Severability; Paragraph Headings; and Conflict. If any section, paragraph,
clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph,
clause or provision shall not affect any of the other provisions of this Ordinance. The paragraph
headings in this Ordinance are furnished for convenience of reference only and shall not be
considered to be part of this Ordinance.
Section 27. Publication and Recordation. This Ordinance shall be published in full in the
Muskegon Chronicle, a newspaper of general circulation in the City qualified under State law to
publish legal notices, promptly after its adoption, and shall be recorded in the Ordinance Book of
the City and such recording authenticated by the signatures of the Mayor and the City Clerk.
Section 28. Effective Date. This Ordinance shall be effective upon its adoption and
publication.
ADOPTED AND SIGNED THIS 9th day of July, 2019.
Signed____________________________________
Mayor
Signed____________________________________
City Clerk
I HEREBY CERTIFY that the foregoing constitutes a true and complete copy of an Ordinance
duly adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan,
at a regular meeting held on the 9th day of July, 2019, and that said meeting was conducted and
public notice of said meeting was given pursuant to and in full compliance with the Open Meetings
Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were kept
and will be or have been made available as required by said Act.
I further certify that the following Members were present at said meeting:
__________________________________________________________________________ and
that the following Members were absent:
________________________________________________________.
I further certify that Member _________________ moved for adoption of said Ordinance,
and that said motion was supported by Member _________________.
I further certify that the following Members voted for adoption of said Ordinance:
__________________________________________________________________________ and
that the following Members voted against adoption of said Ordinance:
________________________________.
I further certify that said Ordinance has been recorded in the Ordinance Book and that such
recording has been authenticated by the signatures of the Mayor and the City Clerk.
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____________________________________
City Clerk
33890207.1\063684-00047
21
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Finance
DATE: July 2, 2019
SUBJECT: Ordinance Authorizing the issuance of Sanitary Sewer Junior Lien Revenue Bonds
SUMMARY OF REQUEST: To authorize the issuance of Sanitary Sewer System Bonds in an amount
not to exceed $11,500,000. The Bonds are expected to be sold to the Michigan Finance Authority and
payable in 20 annual principal installments at an interest rate of 2%. Scheduled closing is August 30th.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None, it is in the approved 2019-20 budget.
STAFF RECOMMENDATION: To approve the Ordinance authorizing the issuance of Sanitary Sewer
System Revenue Bonds.
ORDINANCE NO. _____
CITY OF MUSKEGON
AN ORDINANCE TO PROVIDE FOR THE ACQUISITION, CONSTRUCTION,
INSTALLATION, FURNISHING AND EQUIPPING OF ADDITIONS AND
IMPROVEMENTS TO THE SANITARY SEWER SYSTEM OF THE CITY; TO
PROVIDE FOR THE ISSUANCE AND SALE OF JUNIOR LIEN REVENUE
BONDS TO PAY THE COST THEREOF; TO PROVIDE FOR THE
COLLECTION OF REVENUES FROM THE SYSTEM SUFFICIENT FOR THE
PURPOSE OF PAYING THE COSTS OF OPERATION AND MAINTENANCE
OF THE SYSTEM AND TO PAY THE PRINCIPAL OF AND INTEREST ON
THE BONDS; TO PROVIDE FOR THE SEGREGATION AND DISTRIBUTION
OF SYSTEM REVENUES; TO PROVIDE FOR THE RIGHTS OF THE
HOLDERS OF THE BONDS IN ENFORCEMENT THEREOF; TO ESTABLISH
SEPARATE SERIES OF BONDS OF SENIOR AND SUBORDINATE STATUS
WITH RESPECT TO THE NET REVENUES OF THE SYSTEM; TO
PRESCRIBE THE FORM OF THE BONDS; AND TO PROVIDE FOR OTHER
MATTERS RELATING TO THE BONDS AND THE SYSTEM.
THE CITY OF MUSKEGON ORDAINS:
Section 1. Definitions. Whenever used in this Ordinance, except when otherwise indicated
by the context, the following terms shall have the following meanings:
(a) “Act 94” means Act 94, Public Acts of Michigan, 1933, as amended.
(b) “Adjusted Net Revenues” means for any operating year the excess of
revenues over expenses for the System determined in accordance with generally accepted
accounting principles, to which shall be added depreciation, amortization, interest expense
on Bonds and payments to the City in lieu of taxes, to which may be made the following
adjustments.
(i) Revenues may be augmented by the amount of any rate increases
adopted prior to the issuance of additional Bonds or to be placed into effect before
the time principal or interest on the additional Bonds becomes payable from
Revenues as applied to quantities of service furnished during the operating year or
portion thereof that the increased rates were not in effect.
(ii) Revenues may be augmented by amounts which may be derived
from rates and charges to be paid by new customers of the System.
(c) “Authority” means the Michigan Finance Authority or its successor.
(d) “Authorized Officers” means the Mayor, the City Manager, the City Clerk
and the Finance Director of the City.
(e) “Bonds” or “Senior Lien Bonds” means any bonds or series of bonds so
designated and payable from Net Revenues, which are secured by a statutory first lien on
the Net Revenues established by this Ordinance and which are senior and superior in all
respects with respect to the Net Revenues to any Junior Lien Bonds secured by the statutory
second lien established by this Ordinance, together with any additional Bonds of equal
standing thereafter issued.
(f) “City” or “Issuer” means the City of Muskegon, County of Muskegon, State
of Michigan.
(g) “EGLE” means the means the Michigan Department of Environment, Great
Lakes, and Energy, or its successor.
(h) “Engineers” means Prein & Newhof, registered engineers of Grand Rapids,
Michigan.
(i) “Junior Lien Bonds” means Series 2019 Bond and any additional bonds of
equal standing with the Series 2019 Bond which are secured by a statutory second lien on
the Net Revenues and are junior and subordinate to the Senior Lien Bonds.
(j) “Project” means the acquisition, construction, furnishing and equipping of
improvements to the Sanitary Sewer System of the City, including sewer system
rehabilitation and replacement of existing sewer lines, together with pump station
improvements and all related appurtenances and attachments.
(k) “Purchase Contract” means the Purchase Contract to be entered into
between the Authority and the City relating to the purchase by the Authority of the Series
2019 Bond.
(l) “Revenues” and “Net Revenues” shall mean the revenues and net revenues
of the City derived from the operation of the System and shall be construed as defined in
Section 3 of Act 94, including with respect to “Revenues,” the earnings derived from the
investment of moneys in the various funds and accounts established by this Ordinance.
(m) “Series 2019 Bond” means the Sanitary Sewer System Junior Lien Revenue
Bond, Series 2019, of the City in the principal amount of not to exceed $11,500,000
authorized by this Ordinance.
(n) “Sufficient Government Obligations” means direct obligations of the
United States of America or obligations the principal and interest on which is fully
guaranteed by the United States of America, not redeemable at the option of the issuer, the
principal and interest payments upon which without reinvestment of the interest, come due
at such times and in such amounts as to be fully sufficient to pay the interest as it comes
due on the Bonds or Junior Lien Bonds and the principal and redemption premium, if any,
on the Bonds or Junior Lien Bonds as it comes due whether on the stated maturity date or
upon earlier redemption. Securities representing such obligations shall be placed in trust
with a bank or trust company, and if any of the Bonds or Junior Lien Bonds are to be called
2
for redemption prior to maturity, irrevocable instructions to call the Bonds for redemption
shall be given to the paying agent.
(o) “Supplemental Agreement” means the supplemental agreement among the
City, the Authority and the EGLE relating to the Series 2019 Bond.
(p) “System” means the Sanitary Sewer System of the City, including the
Project and all additions, extensions and improvements hereafter acquired.
Section 2. Necessity; Approval of Plans and Specifications. It is hereby determined to be
a necessary public purpose of the City to acquire and construct the Project in accordance with the
plans and specifications prepared by the Engineers, which plans and specifications are hereby
approved. The Project qualifies for the State Revolving Fund financing program being
administered by the EGLE and the Authority, whereby bonds of the City are sold to the Authority
and bear interest at a fixed rate of not to exceed two and one-half percent (2.50%) per annum.
Section 3. Costs; Useful Life. The cost of the Project is estimated to be an amount not to
exceed Eleven Million Five Hundred Thousand Dollars ($11,500,000), including the payment of
incidental expenses as specified in Section 4 of this Ordinance, which estimate of cost is hereby
approved and confirmed. The period of usefulness of the Project is estimated to be not less than
twenty-five (25) years.
Section 4. Payment of Cost; Bonds Authorized. To pay part of the cost of acquiring the
Project, legal, engineering, financial and other expenses incident thereto and incident to the
issuance and sale of the Series 2019 Bond, the City shall borrow the sum of not to exceed Eleven
Million Five Hundred Thousand Dollars ($11,500,000), and issue the Series 2019 Bond therefor
pursuant to the provisions of Act 94. The remaining cost of the Project, if any, shall be defrayed
from grant funds and City funds on hand and legally available for such use.
Section 5. Issuance of Series 2019 Bond; Details. The Series 2019 Bond of the City, to be
designated SANITARY SEWER SYSTEM JUNIOR LIEN REVENUE BOND, SERIES 2019 is
authorized to be issued in the aggregate principal sum of not to exceed Eleven Million Five
Hundred Thousand Dollars ($11,500,000) or such lesser amount as finally determined by order of
the EGLE for the purpose of paying part of the cost of the Project, including the costs incidental
to the issuance, sale and delivery of the Series 2019 Bond. The Series 2019 Bond shall be payable
out of the Net Revenues, as set forth more fully in Section 8 hereof, provided that said Series 2019
Bond shall be junior and subordinate to the prior lien with respect to the Net Revenues of any
Senior Lien Bonds hereafter issued.
The Series 2019 Bond shall be in the form of a single fully-registered, nonconvertible bond
of the denomination of the full principal amount thereof, dated as of the date of delivery, payable
in principal installments as finally determined by the order of the EGLE at the time of sale of the
Series 2019 Bond and approved by the Authority and an Authorized Officer. Principal installments
of the Series 2019 Bond shall be payable on April 1 of the years 2021 through 2040, inclusive, or
such other payment dates as hereinafter provided. Interest on the Series 2019 Bond shall be
payable on April 1 and October 1 of each year, commencing April 1, 2020 or on such other interest
payment dates as hereinafter provided. Final determination of the principal amount of and interest
3
on the Series 2019 Bond and the payment dates and amounts of principal installments of the Series
2019 Bond shall be evidenced by execution of the Purchase Contract and each of the Authorized
Officers is authorized and directed to execute and deliver the Purchase Contract when in final form
and to make the determinations set forth above; provided, however, that the first principal
installment shall be due no earlier than April 1, 2020 and the final principal installment shall be
due no later than October 1, 2041 and that the total principal amount shall not exceed $11,500,000.
The Series 2019 Bond shall bear interest at a rate of not to exceed two and one-half percent
(2.50%) per annum on the par value thereof or such other rate as evidenced by execution of the
Purchase Contract, but in any event not to exceed the rate permitted by law, and any Authorized
Officers as shall be appropriate shall deliver the Series 2019 Bond in accordance with the delivery
instructions of the Authority.
The principal amount of the Series 2019 Bond is expected to be drawn down by the City
periodically, and interest on principal amount shall accrue from the date such principal amount is
drawn down by the City.
The Series 2019 Bond shall not be convertible or exchangeable into more than one fully-
registered bond. Principal of and interest on the Series 2019 Bond shall be payable as provided in
the Series 2019 Bond form in this Ordinance.
The Series 2019 Bond shall be subject to optional redemption by the City with the prior
written approval of the Authority and on such terms as may be required by the Authority.
The Treasurer shall record on the registration books payment by the City of each
installment of principal or interest or both when made and the cancelled checks or other records
evidencing such payments shall be returned to and retained by the Treasurer.
Upon payment by the City of all outstanding principal of and interest on the Series 2019
Bond, the Authority shall deliver the Series 2019 Bond to the City for cancellation.
Section 6. Execution of Series 2019 Bond. The Series 2019 Bond shall be signed by the
manual or facsimile signature of the Mayor and countersigned by the manual or facsimile signature
of the City Clerk and shall have the corporate seal of the City or facsimile thereof impressed
thereon. The Series 2019 Bond bearing the manual or facsimile signatures of the Mayor and the
City Clerk sold to the Authority shall require no further authentication.
Section 7. Registration and Transfer. Any Bond or Junior Lien Bond may be transferred
upon the books required to be kept pursuant to this section by the person in whose name it is
registered, in person or by the registered owner’s duly authorized attorney, upon surrender of the
Bond or Junior Lien Bond for cancellation, accompanied by delivery of a duly executed written
instrument of transfer in a form approved by the transfer agent. Whenever any Bond or Junior
Lien Bond shall be surrendered for transfer, the City shall execute and the transfer agent shall
authenticate and deliver a new Bond or Junior Lien Bond, for like aggregate principal amount.
The transfer agent shall require payment by the bondholder requesting the transfer of any tax or
other governmental charge required to be paid with respect to the transfer. The City shall not be
required (i) to issue, register the transfer of or exchange any Bond or Junior Lien Bond during a
period beginning at the opening of business 15 days before the day of the giving of a notice of
4
redemption of Bonds selected for redemption as described in the form of Series 2019 Bond
contained in Section 18 of this Ordinance and ending at the close of business on the day of that
giving of notice, or (ii) to register the transfer of or exchange any Bond or Junior Lien Bond so
selected for redemption in whole or in part, except the unredeemed portion of Bonds or Junior
Lien Bonds being redeemed in part. The City shall give the transfer agent notice of call for
redemption at least 20 days prior to the date notice of redemption is to be given.
The transfer agent shall keep or cause to be kept at its principal office sufficient books for
the registration and transfer of the Bonds or Junior Lien Bond, which shall at all times be open to
inspection by the City; and upon presentation for such purpose the transfer agent shall under such
reasonable regulations as it may prescribe transfer or cause to be transferred on said books Bonds
or Junior Lien Bond as hereinbefore provided.
If any Bond or Junior Lien Bond shall become mutilated, the City, at the expense of the
holder of the Bond, shall execute, and the transfer agent shall authenticate and deliver, a new Bond
or Junior Lien Bond of like tenor in exchange and substitution for the mutilated Bond or Junior
Lien Bond, upon surrender to the transfer agent of the mutilated Bond or Junior Lien Bond. If any
Bond or Junior Lien Bond issued under this Ordinance shall be lost, destroyed or stolen, evidence
of the loss, destruction or theft may be submitted to the transfer agent and, if this evidence is
satisfactory to both and indemnity satisfactory to the transfer agent shall be given, and if all
requirements of any applicable law including Act 354, Public Acts of Michigan, 1972, as amended
(“Act 354”), being sections 129.131 to 129.135, inclusive, of the Michigan Compiled Laws have
been met, the City, at the expense of the owner, shall execute, and the transfer agent shall thereupon
authenticate and deliver, a new Bond or Junior Lien Bond of like tenor and bearing the statement
required by Act 354, or any applicable law hereafter enacted, in lieu of and in substitution for the
Bond or Junior Lien Bond so lost, destroyed or stolen. If any such Bond or Junior Lien Bond shall
have matured or shall be about to mature, instead of issuing a substitute Bond or Junior Lien Bond
the transfer agent may pay the same without surrender thereof.
Section 8. Payment of Series 2019 Bond; Security; Priority of Lien. Any Bonds hereafter
issued and the interest thereon shall be payable solely from the Net Revenues, and to secure such
payment, there is hereby created a statutory lien upon the whole of the Net Revenues which shall
be a first lien to continue until payment in full of the principal of and interest on all Bonds payable
from the Net Revenues, or, until sufficient cash or Sufficient Government Obligations have been
deposited in trust for payment in full of all Bonds of a series then outstanding, principal and interest
on such Bonds to maturity, or, if called for redemption, to the date fixed for redemption together
with the amount of the redemption premium, if any.
Any Junior Lien Bonds issued hereunder, including the Series 2019 Bond, and the interest
thereon shall be payable solely from the Net Revenues, and to secure such payment, there is hereby
created a statutory lien upon the whole of the Net Revenues which shall be a second lien, subject
only to the statutory first lien established with respect to the Senior Lien Bonds, to continue until
payment in full of the principal of and interest on all Junior Lien Bonds payable from the Net
Revenues, or, until sufficient cash or Sufficient Government Obligations have been deposited in
trust for payment in full of all Junior Lien Bonds of a series then outstanding, principal and interest
on such Junior Lien Bonds to maturity, or, if called for redemption, to the date fixed for redemption
together with the amount of the redemption premium, if any. The statutory lien on the Net
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Revenues created with respect to the Junior Lien Bonds (including the Series 2019 Bond) shall at
all times be and remain subordinate and inferior to the pledge of Net Revenues and the statutory
first lien thereon authorized to be granted to secure any Senior Lien Bonds hereafter issued.
Upon deposit of cash or Sufficient Government Obligations, as provided in the previous
sentences, the statutory lien shall be terminated with respect to that series of Bonds or Junior Lien
Bonds, the holders of that series shall have no further rights under this Ordinance except for
payment from the deposited funds, and the Bonds or Junior Lien Bonds of that series shall no
longer be considered to be outstanding under this Ordinance.
Section 9. Bondholders’ Rights; Receiver. The holder or holders of the Bonds or Junior
Lien Bonds representing in the aggregate not less than twenty percent (20%) of the entire principal
amount thereof then outstanding, may, by suit, action, mandamus or other proceedings, protect
and enforce the statutory lien upon the Net Revenues of the System, and may, by suit, action,
mandamus or other proceedings, enforce and compel performance of all duties of the officers of
the City, including the fixing of sufficient rates, the collection of Revenues, the proper segregation
of the Revenues of the System and the proper application thereof. The statutory lien upon the Net
Revenues, however, shall not be construed as to compel the sale of the System or any part thereof.
If there is a default in the payment of the principal of or interest on the Bonds or the Junior
Lien Bonds, any court having jurisdiction in any proper action may appoint a receiver to administer
and operate the System on behalf of the City and under the direction of the court, and by and with
the approval of the court to perform all of the duties of the officers of the City more particularly
set forth herein and in Act 94.
The holder or holders of the Bonds and the Junior Lien Bonds shall have all other rights
and remedies given by Act 94 and law, for the payment and enforcement of the Bonds and the
Junior Lien Bonds and the security therefor.
Section 10. Management; Fiscal Year. The operation, repair and management of the
System and the acquisition and construction of the Project shall be under the supervision and
control of the City Commission. The City Commission, in accordance with the relevant provisions
of the City Charter, may employ such person or persons in such capacity or capacities as it deems
advisable to carry on the efficient management and operation of the System. The City Commission
may make such rules and regulations as it deems advisable and necessary to assure the efficient
management and operation of the System. The fiscal year of the System shall be the fiscal year of
the City.
Section 11. Rates and Charges. The rates and charges for service furnished by and the use
of the System and the methods of collection and enforcement of the collection of the rates shall be
those in effect on the date of adoption of this Ordinance.
Section 12. No Free Service or Use. No free service or use of the System, or service or
use of the System at less than cost, shall be furnished by the System to any person, firm or
corporation, public or private, or to any public agency or instrumentality, including the City.
Section 13. Fixing and Revising Rates; Rate Covenant. The rates now in effect are
estimated to be sufficient to provide for the payment of the expenses of administration and
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operation and such expenses for maintenance of the System as are necessary to preserve the System
in good repair and working order, to provide for the payment of the principal of and interest on the
Bonds and the Junior Lien Bonds as the same become due and payable, and the maintenance of
the reserve therefor and to provide for all other obligations, expenditures and funds for the System
required by law and this Ordinance. In addition, it is agreed that the rates shall be set from time
to time so that there shall be produced each fiscal year Net Revenues in an amount not less than
110% of the principal of and interest on all Bonds coming due in each fiscal year and not less than
100% of the principal of and interest on all Junior Lien Bonds coming due in each fiscal year. The
rates shall be fixed and revised from time to time as may be necessary to produce these amounts,
and it is hereby covenanted and agreed to fix and maintain rates for services furnished by the
System at all times sufficient to provide for the foregoing.
Section 14. Funds and Accounts; Flow of Funds. Commencing on July 1, 2019, all
funds belonging to the System shall be transferred as herein indicated and all Revenues of the
System shall be set aside as collected and credited to a fund to be designated SANITARY SEWER
SYSTEM RECEIVING FUND (the “Receiving Fund”). In addition, on July 1, 2019, all Revenues
in any accounts of the System shall be transferred to the Receiving Fund and credited to the funds
and accounts as provided in this section. The Revenues credited to the Receiving Fund are pledged
for the purpose of the following funds and shall be transferred or debited from the Receiving Fund
periodically in the manner and at the times and in the order of priority hereinafter specified:
A. OPERATION AND MAINTENANCE ACCOUNT:
Out of the Revenues credited to the Receiving Fund there shall be first set aside in,
or credited to, a fund designated OPERATION AND MAINTENANCE ACCOUNT (the
“Operation and Maintenance Account”), monthly a sum sufficient to provide for the
payment of the next month’s expenses of administration and operation of the System and
such current expenses for the maintenance thereof as may be necessary to preserve the
same in good repair and working order.
A budget, showing in detail the estimated costs of administration, operation and
maintenance of the System for the next ensuing operating year, shall be prepared by the
City at least 30 days prior to the commencement of each ensuing operating year. No
payments shall be made to the City from moneys credited to the Operation and
Maintenance Account except for services directly rendered to the System by the City or its
personnel.
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B. BOND AND INTEREST REDEMPTION ACCOUNT:
There shall be established and maintained a separate depositary fund designated
BOND AND INTEREST REDEMPTION ACCOUNT (the “Redemption Account”), the
moneys on deposit therein from time to time to be used solely for the purpose of paying
the principal of, redemption premiums (if any) and interest on the Bonds. The moneys in
the Redemption Account shall be kept on deposit with the bank or trust company where
the principal of and interest on the Bonds, or any series thereof, are payable.
Out of the Revenues remaining in the Receiving Fund, after provision for the
Operation and Maintenance Account, there shall be set aside in the Redemption Account
each month, commencing with the date of issue of a series of Bonds, a sum proportionately
sufficient to provide for the payment when due of the then current principal of and interest
on the Bonds, less any amount in the Redemption Account representing accrued interest
on the Bonds or investment income on amounts on deposit in the Redemption Account.
Commencing with the date of issue of a series of Bonds, the amount set aside each month
for interest on the Bonds shall be the fractional amount of the total amount of interest on
the Bonds next coming due derived from the number of months from the date of issue of
the Bonds to the first interest payment date. Commencing with the first interest payment
date, the amount set aside each month for interest on the Bonds shall be 1/6 of the total
amount of interest on the Bonds next coming due. The amount set aside each month for
principal, commencing with the date of issue of a series of Bonds, shall be the fractional
amount of the total amount of principal on the Bonds next coming due by maturity or
sinking fund redemption derived from the number of months from the date of issue of the
Bonds to the first principal payment date. The amount set aside each month for principal
payment commencing with the first principal payment date shall be 1/12 of the amount of
principal next coming due by maturity or sinking fund redemption. If there is any
deficiency in the amount previously set aside, that deficiency shall be added to the next
succeeding monthly requirements. The amount to be set aside for the payment of principal
and interest on any date shall not exceed the amount which, when added to the money on
deposit in the Redemption Account, including investment income thereon, is necessary to
pay principal and interest due on the Bonds on the next succeeding principal payment date.
C. JUNIOR LIEN BOND AND INTEREST REDEMPTION ACCOUNT:
There is hereby established and there shall be maintained a separate depositary
account designated JUNIOR LIEN BOND AND INTEREST REDEMPTION ACCOUNT
(the “Junior Lien Redemption Account”). Except as otherwise provided herein, the
moneys on deposit therein from time to time shall be used for the purpose of paying the
principal or Redemption Price of and interest on any Junior Lien Bonds.
Out of the Revenues remaining in the Receiving Fund, after transfer, if required,
for deposit into the Operation and Maintenance Account and the Redemption Account,
there shall be set aside monthly in the Junior Lien Redemption Account a sum sufficient to
provide for the next payment when due of the principal of and interest on the Junior Lien
Bonds, less any amount in the Junior Lien Redemption Account representing accrued
interest on the Junior Lien Bonds, and less the sum of any funds actually on deposit in the
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Junior Lien Redemption Account. The amount set aside and transferred to the Junior Lien
Redemption Account each month for interest on the Junior Lien Bonds shall be 1/6 of the
total amount of interest on the Junior Lien Bonds next coming due or such greater or lesser
amount as is necessary to assure that the amount set aside in the Junior Lien Redemption
Account as of the first of such month is not less than the product of (a) 1/6 of the amount
of interest next due on the Junior Lien Bonds times (b) the number of months elapsed since
and including the last interest payment date. For the month immediately prior to each
interest payment date the amount set aside and transferred to the Junior Lien Redemption
Account to pay interest shall be reduced by amounts, including investment earnings,
available in the Junior Lien Redemption Account which are available for such purpose.
The amount set aside and transferred to the Junior Lien Redemption Account each month
for principal commencing twelve months prior to the first maturity or mandatory sinking
fund redemption date shall be 1/12 of the amount of principal next coming due on the
Junior Lien Bonds by maturity or as a mandatory redemption requirement or such greater
or lesser amount as is necessary to assure that the amount set aside in the Junior Lien
Redemption Account as of the first of such month is not less than the product of 1/12 of
the amount of principal next due on the Junior Lien Bonds times (b) the number of months
elapsed since and including the last principal payment date. If there is any deficiency in
the amount previously set aside, that deficiency shall be added to the next succeeding
month’s requirement.
No further payments need be made into the Junior Lien Redemption Account after
enough of the principal installments of the Junior Lien Bonds have been retired so that the
amount then held in the Junior Lien Redemption Account (including a bond reserve
account, if any), is equal to the entire amount of principal and interest which will be payable
at the time of maturity of all the principal installments of the Bond then remaining
outstanding.
D. REPLACEMENT AND IMPROVEMENT FUND:
There shall next be established and maintained a fund, separate depositary account,
designated SANITARY SEWER SYSTEM REPLACEMENT ACCOUNT or such other
designation determined by the Treasurer (the “Replacement Account”), the money credited
thereto to be used solely for the purpose of making repairs and replacements to the System.
Out of the Revenues and moneys of the System remaining in the Receiving Fund each
month after provision has been made for the deposit of moneys in the Operation and
Maintenance Account, the Redemption Account and the Junior Lien Redemption Account,
there may be deposited in the Replacement Account such additional funds as the City may
deem advisable. If at any time it shall be necessary to use moneys in the Replacement
Account for the purpose for which the Replacement Account was established, the moneys
so used shall be replaced from any moneys in the Receiving Fund which are not required
by this Ordinance to be used for the Operation and Maintenance Account, the Redemption
Account, or the Junior Lien Redemption Account.
E. GENERAL OBLIGATION DEBT ACCOUNT:
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Out of the remaining Revenues in the Receiving Fund, there may be next set aside
in or credited to monthly after meeting the requirements of the foregoing Account, to an
account designated General Obligation Debt Account (the “G.O. Fund”), or from other
available moneys such sums as shall be necessary to pay debt service on presently existing
or future general obligation bond issues of the City or general obligations or contractual
obligations of the City incurred or to be incurred for System purposes.
F. SURPLUS MONEYS:
Thereafter, any Revenues in the Receiving Fund after satisfying all the foregoing
requirements of this Section may, at the discretion of the City, be used for any of the
following purposes:
1. Transferred to the Replacement Account.
2. Transferred to the Redemption Account and used for the purchase of Bonds
on the open market at not more than the fair market value thereof or used to redeem
Bonds prior to maturity pursuant to this Ordinance.
3. Any other use permitted by law.
Section 15. Priority of Funds. In the event the moneys in the Receiving Fund are
insufficient to provide for the current requirements of the Operation and Maintenance Account,
the Redemption Account, or the Junior Lien Redemption Account, any moneys or securities in
other funds of the System, except the proceeds of sale of the Bonds, shall be credited or transferred,
first, to the Operation and Maintenance Account, and second to the Redemption Account.
Section 16. Investments. Moneys in the funds and accounts established herein and moneys
derived from the proceeds of sale of the Bonds, may be invested by the City in United States of
America obligations or in obligations the principal of and interest on which is fully guaranteed by
the United States of America and any investments now or hereafter permitted by Act 94 or other
controlling law. Investment of moneys in the Redemption Account or the Junior Lien Redemption
Account being accumulated for payment of the next maturing principal or interest payment of the
Bonds or of the Junior Lien Bonds shall be limited to obligations bearing maturity dates prior to
the date of the next maturing principal or interest payment on the Bonds or the Junior Lien Bonds.
In the event investments are made, any securities representing the same shall be kept on deposit
with the bank or trust company having on deposit the fund or funds or account from which the
purchase was made. Profit realized or interest income earned on investment of funds in the Funds
established hereunder shall be deposited in or credited to the Fund having realized the profit or
earned the interest (unless otherwise expressly provided in this Ordinance or as determined by the
City), such deposit or credit to occur periodically but not less often than at the end of each fiscal
year.
Section 17. Bond Proceeds. From the proceeds of the sale of the Series 2019 Bond there
shall be immediately deposited in the Junior Lien Redemption Account an amount equal to the
accrued interest and premium, if any, received on the delivery of the Series 2019 Bond. The
balance of the proceeds of the sale of the Series 2019 Bond shall be deposited in a bank or banks,
designated by the City, qualified to act as depository of the proceeds of sale under the provisions
10
of Act 94, in an account designated 2019 SANITARY SEWER SYSTEM PROJECT
CONSTRUCTION FUND (the “Construction Fund”). Moneys in the Construction Fund shall be
applied solely in payment of the cost of the Project, including any engineering, legal and other
expenses incident thereto and to the financing thereof.
Any unexpended balance of the proceeds of sale of the Series 2019 Bond remaining after
completion of the Project in the Construction Fund may, at the discretion of the City, be used for
further improvements, enlargements and extension to the System, if, at the time of such
expenditures, such use is approved by the Michigan Department of Treasury, if such permission
is then required by law. Any remaining balance after such expenditure shall be paid to the
Redemption Account and may be used for the purpose of purchasing the Series 2019 Bond on the
open market at not more than the fair market value thereof, but not more than the price at which
the Series 2019 Bond may next be called for redemption, or used for the purpose of paying
principal of the Series 2019 Bond upon maturity or calling the Series 2019 Bond for redemption.
Section 18. Bond Form. The Series 2019 Bond shall be in substantially the following form
with such changes or completion as necessary or appropriate to give effect to the intent of this
Ordinance and further subject to such modifications which may be required by the Michigan
Attorney General and the Authority and approved by bond counsel:
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UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF MUSKEGON
CITY OF MUSKEGON
SANITARY SEWER SYSTEM JUNIOR LIEN REVENUE BOND, SERIES 2019
REGISTERED OWNER: Michigan Finance Authority
PRINCIPAL AMOUNT: __________________ Dollars ($__________)
DATE OF ORIGINAL ISSUE: August 30, 2019
The CITY OF MUSKEGON, County of Muskegon, State of Michigan (the “City”), for
value received, hereby promises to pay, but only out of the hereinafter described Net Revenues of
the City’s Sanitary Sewer System (hereinafter defined), to the Michigan Finance Authority (the
“Authority”), or registered assigns, the Principal Amount shown above, or such portion thereof as
shall have been advanced to the City pursuant to a Purchase Contract between the City and the
Authority and a Supplemental Agreement by and among the City, the Authority and the State of
Michigan acting through the Department of Environmental Quality, in lawful money of the United
States of America, unless prepaid or reduced prior thereto as hereinafter provided.
During the time funds are being drawn down by the City under this Bond, the Authority
will periodically provide the City a statement showing the amount of principal that has been
advanced and the date of each advance, which statement shall constitute prima facie evidence of
the reported information; provided that no failure on the part of the Authority to provide such a
statement or to reflect a disbursement or the correct amount of a disbursement shall relieve the
City of its obligation to repay the outstanding principal amount actually advanced, all accrued
interest thereon, and any other amount payable with respect thereto in accordance with the terms
of this Bond.
The Principal Amount shall be payable on the dates and in the annual principal installment
amounts set forth on Schedule A attached hereto and made a part hereof, as such Schedule may be
adjusted if less than $________ is disbursed to the City or if a portion of the Principal Amount is
prepaid as provided below, with interest on said principal installments from the date each said
installment is delivered to the holder hereof until paid at the rate of two percent (2.00%) per annum.
Interest is first payable April 1, 2020 and semiannually thereafter and principal is payable on the
first day of April commencing April 1, 2021 (as identified in the Purchase Contract) and annually
thereafter.
Principal installments of this bond are subject to prepayment by the City prior to maturity
only with the prior written consent of the Authority and on such terms as may be required by the
Authority.
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Notwithstanding any other provision of this bond, so long as the Authority is the owner of
this bond, (a) this bond is payable as to principal, premium, if any, and interest at The Bank of
New York Mellon Trust Company, N.A. or at such other place as shall be designated in writing to
the City by the Authority (the "Authority's Depository"); (b) the City agrees that it will deposit
with the Authority's Depository payments of the principal of, premium, if any, and interest on this
bond in immediately available funds by 12:00 noon at least five business days prior to the date on
which any such payment is due whether by maturity, redemption or otherwise; in the event that
the Authority's Depository has not received the City's deposit by 12:00 noon on the scheduled day,
the City shall immediately pay to the Authority as invoiced by the Authority an amount to recover
the Authority's administrative costs and lost investment earnings attributable to that late payment;
and (c) written notice of any redemption of this bond shall be given by the City and received by
the Authority's Depository at least 40 days prior to the date on which such redemption is to be
made.
Additional Interest
In the event of a default in the payment of principal or interest hereon when due, whether
at maturity, by redemption or otherwise, the amount of such default shall bear interest (the
“additional interest”) at a rate equal to the rate of interest which is two percent above the
Authority’s cost of providing funds (as determined by the Authority) to make payment on the
bonds of the Authority issued to provide funds to purchase this bond but in no event in excess of
the maximum rate of interest permitted by law. The additional interest shall continue to accrue
until the Authority has been fully reimbursed for all costs incurred by the Authority (as determined
by the Authority) as a consequence of the City’s default. Such additional interest shall be payable
on the interest payment date following demand of the Authority. In the event that (for reasons
other than the default in the payment of any municipal obligation purchased by the Authority) the
investment of amounts in the reserve account established by the Authority for the bonds of the
Authority issued to provide funds to purchase this bond fails to provide sufficient available funds
(together with any other funds which may be made available for such purpose) to pay the interest
on outstanding bonds of the Authority issued to fund such account, the City shall and hereby agrees
to pay on demand only the City’s pro rata share (as determined by the Authority) of such deficiency
as additional interest on this bond.
For prompt payment of principal and interest on this bond, the City has irrevocably pledged
the revenues of the Sanitary Sewer System of the City, including all appurtenances, extensions and
improvements thereto (the “System”), after provision has been made for reasonable and necessary
expenses of operation, maintenance and administration (the “Net Revenues”), and a statutory
second lien thereon is hereby recognized and created, subject to the senior lien of any additional
Bonds of the City hereafter issued by the City, as set forth in the Ordinance (hereinafter defined).
The City has reserved the right to issue such additional Bonds which shall be superior and senior
in all respects to the bonds of this issue as to the Net Revenues.
Purchasers of the bonds of this issue, by their acceptance of the bonds of this issue or a
beneficial ownership interest therein, shall be deemed to have consented to the subordination of
their interest in and lien upon the Net Revenues upon the issuance of Bonds subsequent to the
delivery of the bonds of this issue.
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This bond is a single, fully-registered, non-convertible bond in the principal sum indicated
above issued pursuant to Ordinance No. ___ (the “Ordinance”) duly adopted by the City
Commission of the City, and under and in full compliance with the Constitution and statutes of the
State of Michigan, including specifically Act 94, Public Acts of Michigan, 1933, as amended, for
the purpose of paying part of the cost of acquiring and constructing additions, extensions and
improvements to the System.
For a complete statement of the revenues from which and the conditions under which this
bond is payable, a statement of the conditions under which additional bonds of superior and equal
standing may hereafter be issued and the general covenants and provisions pursuant to which this
bond is issued, reference is made to the above-described Ordinance.
This bond is a self-liquidating bond, payable, both as to principal and interest, solely and
only from the Net Revenues of the System. The principal of and interest on this bond are secured
by the statutory lien hereinbefore mentioned.
The City has covenanted and agreed, and does hereby covenant and agree, to fix and
maintain at all times while any bonds payable from the Net Revenues of the System shall be
outstanding, such rates for service furnished by the System as shall be sufficient to provide for
payment of the interest upon and the principal of the bonds of this issue, any additional Bonds, and
any additional Junior Lien Bonds, as and when the same shall become due and payable, and to
maintain a bond redemption fund (including a bond reserve account, if any) therefor, to provide
for the payment of expenses of administration and operation and such expenses for maintenance
of the System as are necessary to preserve the same in good repair and working order, and to
provide for such other expenditures and funds for the System as are required by said Ordinance.
This bond is transferable only upon the books of the City by the registered owner in person
or the registered owner’s attorney duly authorized in writing, upon the surrender of this bond
together with a written instrument of transfer satisfactory to the transfer agent, duly executed by
the registered owner or the registered owner’s attorney duly authorized in writing, and thereupon
a new bond or bonds in the same aggregate principal amount and of the same maturity shall be
issued to the transferee in exchange therefor as provided in the Ordinance, and upon payment of
the charges, if any, therein prescribed.
It is hereby certified and recited that all acts, conditions and things required by law to be
done precedent to and in the issuance of this bond have been done and performed in regular and
due time and form as required by law.
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IN WITNESS WHEREOF, the City of Muskegon, County of Muskegon, State of
Michigan, by its City Commission has caused this bond to be executed with the manual or
facsimile signatures of its Mayor and its City Clerk and the corporate seal of the City to be
impressed or imprinted hereon, all as of the Date of Original Issue.
CITY OF MUSKEGON
By_________________________________
Mayor
(Seal)
Countersigned:
By____________________________
City Clerk
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EGLE Project Number: 5675-01
EGLE Approved Amt: $____________
SCHEDULE A
Based on the schedule provided below unless revised as provided in this paragraph, repayment of the
principal of the bond shall be made until the full amount advanced to the City is repaid. In the event the Order of
Approval issued by the Department of Environment, Great Lakes and Energy (the “Order”), approves a principal amount
of assistance less than the amount of the bond delivered to the Authority, the Authority shall only disburse principal
up to the amount stated in the Order. In the event (1) that the payment schedule approved by the City and described
below provides for payment of a total principal amount greater than the amount of assistance approved by the Order
or (2) that less than the principal amount of assistance approved by the Order is disbursed to the City by the Authority,
or (3) that any portion of the principal amount of assistance approved by the Order and disbursed to the City is forgiven
pursuant to the Order, the Authority shall prepare a new payment schedule which shall be effective upon receipt by
the City.
Maturity Date Principal Amount
April 1, 2021 $475,000
April 1, 2022 485,000
April 1, 2023 490,000
April 1, 2024 500,000
April 1, 2025 510,000
April 1, 2026 525,000
April 1, 2027 535,000
April 1, 2028 545,000
April 1, 2029 555,000
April 1, 2030 565,000
April 1, 2031 575,000
April 1, 2032 590,000
April 1, 2033 600,000
April 1, 2034 610,000
April 1, 2035 625,000
April 1, 2036 635,000
April 1, 2037 650,000
April 1, 2038 665,000
April 1, 2039 675,000
April 1, 2040 690,000
Interest on the bond shall accrue on that portion of principal disbursed by the Authority to the City which has
not been forgiven pursuant to the Order from the date such portion is disbursed, until paid, at the rate of 2.00% per
annum, payable April 1, 2020, and semi-annually thereafter.
The City agrees that it will deposit with the Authority’s Depository, or such other place as shall be designated
in writing to the City by the Authority payments of the principal of, premium, if any, and interest on this bond in
immediately available funds by 12:00 noon at least five business days prior to the date on which any such payment is
due whether by maturity, redemption or otherwise. In the event that the Authority’s Depository has not received the
City’s deposit by 12:00 noon on the scheduled day, the City shall immediately pay to the Authority as invoiced by the
Authority an amount to recover the Authority’s administrative costs and lost investment earnings attributable to that
late payment.
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Section 19. General Covenants. The City covenants and agrees with the holders of the
Bonds that so long as any of the Bonds remain outstanding and unpaid as to either principal or
interest:
(a) The City will maintain the System in good repair and working order and
will operate the same efficiently and will faithfully and punctually perform all duties with
reference to the System required by the Constitution and laws of the State of Michigan and
this Ordinance.
(b) The City will keep proper books of record and account separate from all
other records and accounts of the City, in which shall be made full and correct entries of
all transactions relating to the System. The City shall have an annual audit of the books of
record and account of the System for the preceding operating year made each year by an
independent certified public accountant. The auditor shall comment on the manner in
which the City is complying with the requirements of the Ordinance with respect to setting
aside and investing moneys and meeting the requirements for acquiring and maintaining
insurance. The audit shall be completed and so made available not later than six (6) months
after the close of each operating year except as such period may be extended in
conformance with the rules of the Michigan Department of Treasury.
(c) The City will maintain and carry, for the benefit of the holders of the Bonds,
insurance on all physical properties of the System and liability insurance, of the kinds and
in the amounts normally carried by municipalities engaged in the operation of water supply
and Sanitary Sewer system, including self-insurance. All moneys received for losses under
any such insurance policies shall be applied solely to the replacement and restoration of
the property damaged or destroyed, and to the extent not so used, shall be used for the
purpose of redeeming or purchasing Bonds.
(d) The City will not sell, lease or dispose of the System, or any substantial part,
until all of the Bonds and Junior Lien Bonds have been paid in full, both as to principal and
interest or provision made thereof as herein provided. The City will operate the System as
economically as possible, will make all repairs and replacements necessary to keep the
System in good repair and working order, and will not do or suffer to be done any act which
would affect the System in such a way as to have a material adverse effect on the security
for the Bonds and the Junior Lien Bonds.
(e) The City will not grant any franchise or other rights to any person, firm or
corporation to operate a System that will compete with the System and the City will not
operate a system that will compete with the System.
(f) The City will cause the Project to be acquired and constructed promptly and
in accordance with the plans and specification therefor.
Section 20. Additional Bonds. Except as hereinafter provided, the City shall not issue
additional Bonds of equal or prior standing with any initial series of Bonds issued hereunder.
17
The right is reserved in accordance with the provisions of Act 94, to issue additional Bonds
or Junior Lien Bonds payable from the Revenues of the System which shall be of equal standing
and priority of lien on the Net Revenues of the System with the Bonds or Junior Lien Bonds but
only for the following purposes and under the following terms and conditions:
(a) To complete the Project in accordance with the plans and specifications
therefor. Such bonds shall not be authorized unless the engineers in charge of construction
shall execute a certificate evidencing the fact that additional funds are needed to complete
the Project in accordance with the plans and specifications therefor and stating the amount
that will be required to complete the Project. If such certificate shall be so executed and
filed with the City, it shall be the duty of the City to provide for and issue additional revenue
bonds in the amount stated in said certificate to be necessary to complete the Project in
accordance with the plans and specifications plus an amount necessary to issue such bonds
or to provide for part or all of such amount from other sources.
(b) For subsequent repairs, extensions, enlargements and improvements to the
System or for the purpose of refunding part or all of the Bonds or Junior Lien Bonds then
outstanding and paying costs of issuing such additional Bonds or Junior Lien Bonds.
Bonds or Junior Lien Bonds for such purposes shall not be issued pursuant to this
subparagraph (b) unless the Adjusted Net Revenues of the System for the preceding twelve-
month operating year shall be equal to at least one hundred percent (100%) of the maximum
amount of principal and interest thereafter maturing in any operating year on the then
outstanding Bonds or Junior Lien Bonds and on the additional Bonds then being issued. If
the additional Bonds or Junior Lien Bonds are to be issued in whole or in part for refunding
outstanding Bonds or Junior Lien Bonds, the annual principal and interest requirements
shall be determined by deducting from the principal and interest requirements for each
operating year the annual principal and interest requirements of any Bonds or Junior Lien
Bonds to be refunded from the proceeds of the additional Bonds or Junior Lien Bonds. For
purposes of this subparagraph (b) the City may elect to use as the last preceding operating
year any operating year ending not more than sixteen months prior to the date of delivery
of the additional Bonds or Junior Lien Bonds and as the next to the last preceding operating
year, any operating year ending not more than twenty-eight months prior to the date of
delivery of the additional Bonds or Junior Lien Bonds. Determination by the City as to
existence of conditions permitting the issuance of additional Bonds or Junior Lien Bonds
shall be conclusive. No additional Bonds or Junior Lien Bonds of equal standing as to the
Net Revenues of the System shall be issued pursuant to the authorization contained in this
subparagraph if the City shall then be in default in making its required payments to the
Operation and Maintenance Account or the Redemption Account.
(c) For refunding a part or all of the Bonds or Junior Lien Bonds then
outstanding and paying costs of issuing such additional Bonds or Junior Lien Bonds
including deposits which may be required to be made to a bond reserve account (if any) for
such Bonds or Junior Lien Bonds. No additional Bonds or Junior Lien Bonds shall be
issued pursuant to this subsection unless the maximum amount of principal and interest
maturing in any operating year after giving effect to the refunding shall be less than the
maximum amount of principal and interest maturing in any operating year prior to giving
effect to the refunding.
18
Section 21. Negotiated Sale; Application to EGLE and Authority; Execution of
Documents. The City determines that it is in the best interest of the City to negotiate the sale of
the Series 2019 Bond to the Authority because the State Revolving Fund financing programs
provide significant interest savings to the City compared to competitive sale in the municipal bond
market. The Authorized Officers are hereby authorized to make application to the Authority and
to the EGLE for placement of the Series 2019 Bond with the Authority. The actions taken by the
Authorized Officers with respect to the Series 2019 Bond prior to the adoption of this Ordinance
are ratified and confirmed. The Authorized Officers are authorized to execute and deliver the
Purchase Contract, the Supplemental Agreement and the Issuer’s Certificate. Any Authorized
Officers is further authorized to execute and deliver such contracts, documents and certificates as
are necessary or advisable to qualify the Series 2019 Bond for the State Revolving Fund. Prior to
the delivery of the Series 2019 Bond to the Authority, any Authorized Officer is hereby authorized
to make such changes to the form of the Series 2019 Bond contained in Section 18 of this
Ordinance as may be necessary to conform to the requirements of Act 227, Public Acts of
Michigan 1985, as amended (“Act 227”), including, but not limited to changes in the principal
maturity and interest payment dates and references to additional security required by Act 227.
Section 22. Covenant Regarding Tax Exempt Status of the Bonds. The City shall, to the
extent permitted by law, take all actions within its control necessary to maintain the exemption of
the interest on the Series 2019 Bond from general federal income taxation (as opposed to any
alternative minimum or other indirect taxation) under the Internal Revenue Code of 1986, as
amended (the “Code”), including, but not limited to, actions relating to any required rebate of
arbitrage earnings and the expenditure and investment of Series 2019 Bond proceeds and moneys
deemed to be Bond proceeds.
Section 23. Approval of Bond Counsel. The representation of the City by Miller, Canfield,
Paddock and Stone, P.L.C. (“Miller Canfield”), as bond counsel is hereby approved,
notwithstanding the representation by Miller Canfield of the Authority in connection with its
financing programs and borrowings.
Section 24. Approval of Bond Details. The Authorized Officers are each hereby
authorized to adjust the final bond details set forth herein to the extent necessary or convenient to
complete the transaction authorized herein, and in pursuance of the foregoing is authorized to
exercise the authority and make the determinations authorized pursuant to Section 7a(1)(c) of Act
94, including but not limited to determinations regarding interest rates, prices, discounts,
maturities, principal amounts, denominations, dates of issuance, interest payment dates,
redemption rights, the place of delivery and payment, and other matters, provided that the principal
amount of Series 2019 Bond issued shall not exceed the principal amount authorized in this
Ordinance, the interest rate per annum on the Series 2019 Bond shall not exceed two and one-half
percent (2.50%) per annum, and the Series 2019 Bond shall mature in not more than twenty (20)
annual installments.
Section 25. Savings Clause. All ordinances, resolutions or orders, or part thereof, in
conflict with the provisions of this Ordinance are, to the extent of such conflict, repealed.
Section 26. Severability; Paragraph Headings; and Conflict. If any section, paragraph,
clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph,
19
clause or provision shall not affect any of the other provisions of this Ordinance. The paragraph
headings in this Ordinance are furnished for convenience of reference only and shall not be
considered to be part of this Ordinance.
Section 27. Publication and Recordation. This Ordinance shall be published in full in the
Muskegon Chronicle, a newspaper of general circulation in the City qualified under State law to
publish legal notices, promptly after its adoption, and shall be recorded in the Ordinance Book of
the City and such recording authenticated by the signatures of the Mayor and the City Clerk.
Section 28. Effective Date. This Ordinance shall be effective upon its adoption and
publication.
ADOPTED AND SIGNED THIS 9th day of July, 2019.
Signed____________________________________
Mayor
Signed____________________________________
City Clerk
I HEREBY CERTIFY that the foregoing constitutes a true and complete copy of an Ordinance
duly adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan,
at a regular meeting held on the 9th day of July, 2019, and that said meeting was conducted and
public notice of said meeting was given pursuant to and in full compliance with the Open Meetings
Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were kept
and will be or have been made available as required by said Act.
I further certify that the following Members were present at said meeting:
__________________________________________________________________________ and
that the following Members were absent:
________________________________________________________.
I further certify that Member _________________ moved for adoption of said Ordinance,
and that said motion was supported by Member _________________.
I further certify that the following Members voted for adoption of said Ordinance:
__________________________________________________________________________ and
that the following Members voted against adoption of said Ordinance:
________________________________.
I further certify that said Ordinance has been recorded in the Ordinance Book and that such
recording has been authenticated by the signatures of the Mayor and the City Clerk.
20
____________________________________
City Clerk
33890164.1\063684-00046
21
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: July 9th, 2019
SUBJECT: 3rd Street Lighting Agreement
SUMMARY OF REQUEST:
Authorize the DPW Director and City Clerk to sign the Agreement, Authorization and Resolution to allow
the street lighting upgrades along 3rd Street between Muskegon Avenue and Merrill Avenue.
FINANCIAL IMPACT:
$63,446.00
BUDGET ACTION REQUIRED:
None, included in project capital budget
STAFF RECOMMENDATION:
Authorize the DPW Director and City Clerk to sign the required documents.
CEM Support Center
Consumers Energy, CEM Support Center, Lansing Service Center, Rm. 122, 530 W. Willow St., P.O. Box 30162 Lansing, MI 48909-7662
May 14, 2019 NOTIFICATION #:
1047171469
CITY OF MUSKEGON
933 TERRACE ST
MUSKEGON, MI 49440-1397
REFERENCE: 3RD STREET, MUSKEGON
Dear Valued Customer,
Thank you for contacting Consumers Energy for your energy needs. Please note the Notification Number above and include it on any
correspondence you send. Please note the Account Number, located above the Account Name on your invoice, when submitting payment.
Enclosed for approval and signature is the original Authorization for Change and Resolution covering the replacement and/or installation of
streetlight(s). In conjunction with the work, a non-refundable payment of $100.00 per luminaire is required.
A monthly energy charge associated with this lighting installation for 1 Luminaire(s) is approximately
This charge is subject to change based on current rates. After the installation is complete, you will begin receiving a separate monthly bill for the
above energy charge. You are responsible for the final restoration.
The estimated cost for your energy request is as follows:
Non Refundable Agreement for Installation of Electric Facilities: $ 63,446.00
Winter Construction Costs: $ -
Installation Charge ($100.00 per Luminaire): $ -
Additional Costs
Total Estimated Cost: $ 63,446.00
Less Prepayment Received: $ -
Total Estimated Cost Due: $ 63,446.00
Please sign and return the original Authorization for Change and Resolution in the enclosed self-addressed envelope or email to:
POBoxCEServiceRequest@cmsenergy.com. Payment in full is required before the installation can be scheduled for construction.
Please review all attached materials carefully and direct inquiries for your request to:
NICHOLAS W PAGE at 231-332-2640 .
STLT 6-16
A CMS Energy Company
CEM Support Center
Consumers Energy, Lansing Service Center, Rm. 122, 530 W. Willow St., P.O. Box 30162 Lansing, MI 48909-7662
PLEASE RETURN THE CHECKED DOCUMENTS BELOW TO CONSUMERS
ENERGY IN THE ENVELOPE PROVIDED
TO EXPEDITE SERVICE, RETURN VIA EMAIL TO:
POBoxCEServiceRequest@cmsenergy.com
AGREEMENT FOR INSTALLATION (Please return all pages of contracts)
(Form 93, Form 94 and Form 95 - 2 Page Document Each)
(Form 861, Form 862 and Form 230 - 4 Page Document Each)
PAYMENT WITH INVOICE STUB
(BOTTOM STUB IS REQUIRED FOR PROCESSING)
REQUEST FOR ELEVATED CUSTOMER DELIVERY PRESSURE
STANDARD LIGHTING CONTRACT
(MUST BE CERTIFIED BY CLERK)
SIGNED CUSTOMER ATTACHMENT PROGRAM (CAP) CONTRACT
(PLEASE ENSURE TO CHECK PAYMENT OPTION ON CONTRACT)
GO READY FORM (FORM 1250)
TO EXPEDITE SERVICE, RETURN VIA EMAIL TO:
POBoxCEServiceRequest@cmsenergy.com
SITE READY PHOTO(S)
TO EXPEDITE SERVICE, RETURN VIA EMAIL TO:
POBoxCEServiceRequest@cmsenergy.com
OTHER:
NOTIFICATION REFERENCE NUMBERS
ELECTRIC SERVICE NOTIFICATION:
GAS SERVICE NOTIFICATION:
ELECTRIC OH DISTRIBUTION NOTIFICATION:
ELECTRIC UG DISTRIBUTION NOTIFICATION:
GAS MAIN NOTIFICATION:
STREETLIGHT NOTIFICATION: 1047171469
BP CL 9-18
AGREEMENT FOR MODIFICATIONS OF
ELECTRIC FACILITIES (NONREFUNDABLE)
PART I
Effective Date: 3/19/2019 Notification Number: 1047171469
(Drawing Attached, Exhibit A)
Company:
Customer:
CONSUMERS ENERGY COMPANY
a Michigan Corporation CITY OF MUSKEGON
(Name)
530 W. Willow St 933 TERRACE ST
(Street and Number)
Lansing, MI 48909-7662 MUSKEGON, MI 49440-1397
(Address) (City, State and Zip Code)
Attention:
Service Location: 3RD STREET,MUSKEGON
Township MUSKEGON County MUSKEGON
Town 10 Range 16 Section 30
Price: $ 63,446.00
NOTE: ADDITIONAL CHARGES MAY BE OWED. SEE PART II, SECTION 2 and 5 FOR DETAILS.
The Price is good for sixty (60) days from the effective date above. Part II, CONSUMERS' FACILITIES
AGREEMENT TERMS AND CONDITIONS is attached hereto and is a part of this Agreement.
CUSTOMER ACKNOWLEDGES HAVING READ SAID TERMS AND CONDITIONS. CONSUMERS ENERGY
COMPANY EXPRESSLY REJECTS ANY ADDITIONAL OR DIFFERENT TERMS AND CONDITIONS SET
FORTH IN ANY PURCHASE ORDER ISSUED BY CUSTOMER OR IN ANY OTHER CONTRACT DOCUMENT
ISSUED BY CUSTOMER.
CONSUMERS ENERGY COMPANY CITY OF MUSKEGON
(Customer)
By By
(Signature) (Signature)
(Print or Type Name) (Print or Type Name)
(Date Signed) (Date Signed)
Title Title
Form 230 1-2019 Page 1 of 4
AGREEMENT FOR MODIFICATIONS OF
ELECTRIC FACILITIES (NONREFUNDABLE)
TERMS AND CONDITIONS
PART II
1. For any new facilities being installed to accommodate new load to the Company's system, a non-refundable
contribution pursuant to tariffs filed with the Michigan Public Service Commission (Rule C6) is included in the Price.
In consideration of Customer's request and agreement to pay all the costs of relocation/modification of Consumers'
facilities, Consumers hereby agrees to relocate and/or modify its electric facilities. The facilities to be relocated or
modified are shown on the drawing attached as Exhibit A. Pursuant to tariffs filed with the Michigan Public Service
Commission (Rule C1), when relocation or modification of Consumers' facilities is requested or made necessary by a
customer, all costs for the relocation or modification are charged to the requesting party.
For the above mentioned activities, all costs are non-refundable and are due prior to the start of construction. The
Customer shall pay the Price identified in Part I upon execution of this Agreement.
2. After all work is completed, Consumers will invoice the Customer for any additional amounts owed.
The Customer is solely responsible to contact the owner of any phone, cable TV or any other facility that may be
attached to Consumers' poles and make arrangements for the removal and/or relocation of those facilities at the
Customer's expense. The Price identified in Part I does not include any cost the owner of those facilities may charge
for the removal and/or relocation.
The Customer shall also be responsible for additional extraordinary construction costs that result from, but are not
limited to site conditions, environmental contamination, underground, or buried obstructions, permit fees or other
governmental restrictions. If work is to be completed outside of Consumers’ normal working hours at the Customer’s
request, incremental costs shall apply, and these costs will be the Customer’s responsibility.
Any amounts to be paid pursuant to this Agreement are exclusive of federal, state, county, municipal, or local
property, license, excise, sales use, gross receipt or similar tax with respect to the work covered hereunder and if
Consumers is required by applicable law or regulation to pay or collect any such tax or if any such taxes are
assessed against Consumers on account of performance of this Agreement, no matter when such assessment is
made, then such tax or taxes shall be paid by the Customer to Consumers in addition to the amounts provided for
herein.
3. Prior to the installation of the facilities, and as a condition precedent thereto, the Customer shall provide, at no
expense to the Company, recordable easements, on a form provided by the Company, granting all necessary rights
of way for installation and maintenance of said facilities. If said facilities are to serve a residential subdivision, said
easements shall include, but not be limited to, rights of way for streetlighting in the subdivision by means of
underground facilities, even though Consumers does not undertake to provide streetlighting facilities and service as a
part of this Agreement. If said easements are not secured and delivered to Consumers within thirty (30) days after
execution of this Agreement, Consumers may, at its option, refund all payments made to it hereunder by the
Customer, without interest, after deducting reasonable expenses incurred by Consumers on account of this
Agreement, and this Agreement shall thereupon terminate.
4. For any underground facilities included in the work to be performed hereunder, the Customer shall provide, at no
expense to Consumers, 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. The Customer shall maintain the average
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, the Customer 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
Form 230 1-2019 Page 2 of 4
AGREEMENT FOR MODIFICATIONS OF
ELECTRIC FACILITIES (NONREFUNDABLE)
TERMS AND CONDITIONS (CONT.)
5. If any underground facilities or any portion thereof are to be installed between December 15 and April 15, the
Customer shall, prior to installation of said underground facilities or portion thereof, pay Consumers an additional
nonrefundable contribution per trench foot as stated in the "Computation of Electric Distribution System Line
Extension Deposit and Contribution" for the portion of said facilities installed during said period (Winter
construction/practical difficulties charge). The Customer will receive a credit for any part of such winter charge paid
by other utilities for joint use of the trench or paid by the Customer for installation, by Consumers, of gas pipe in the
same trench. No portion of said facilities will be installed between December 15 and April 15, unless the Customer
has paid such additional contribution.
In addition, a further nonrefundable contribution in addition to that provided for herein may be required where, in
Consumers' judgment, practical difficulties not considered in determining the Customer's estimate such as water
conditions or rock near the surface are encountered during construction. If the Customer does not make such
additional contribution within fifteen (15) days after receiving written notice of the necessity for and amount of such
additional contribution, Consumers may, at its option, refund all payments made to it hereunder by the Customer,
without interest and deducting reasonable expenses incurred by Consumers, and this Agreement shall thereupon
terminate.
6. Consumers shall not be in breach of contract as a result of any delay in performing its obligations if such delay is
due to strikes or other labor troubles; inability to obtain labor, materials, components, supplies, for any reason,
including default of suppliers or subcontractors; acts of God; fire; flood; storm; earthquake or other natural calamities;
war; insurrections; riot; embargoes; curtailment; order; regulations or restriction imposed by governmental authorities;
or any other cause which is beyond the reasonable control of Consumers, whether of a similar or dissimilar nature
and whether or not existing or foreseeable on the scheduled date of commencement of the work. Consumers shall
have no obligation to settle any strike or other labor difficulty in a manner not completely satisfactory to it. Should any
such delay occur, the time for the performance of Consumers' obligations shall be extended by a time equal to the
length of the delay plus such additional time as is reasonably necessary to enable Consumers to resume
performance of its obligations.
7. Consumers warrants that any work performed under this Agreement shall be performed by properly skilled
personnel in accordance with generally accepted standards for the work being performed. The sole liability of
Consumers for defective work under this warranty or otherwise, shall be limited to reperforming any such work on the
same conditions as the original work. The foregoing is the Customer's exclusive remedy and, EXCEPT AS
EXPRESSLY STATED HEREIN, THERE ARE NO OTHER WARRANTIES, EXPRESS, IMPLIED OR STATUTORY,
INCLUDING THE WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PURPOSE.
In no event shall Consumers be liable for any loss or damage whatsoever, by reason of its failure to discover, report
or modify latent defect or defects inherent in the subject matter of the work. The aforementioned warranty is subject
to the following conditions:
(a) Consumers shall not be responsible for repairs, replacements, or corrections made by others with respect to the
work performed by Consumers.
(b) The Customer shall notify Consumers in writing of any breach or warranty with respect to the services performed
by Consumers within ten (10) days after completion of the work.
8. THE TOTAL LIABILITY OF CONSUMERS, ITS AGENTS, EMPLOYEES, VENDORS AND CONTRACTORS
WITH RESPECT TO ANY AND ALL CLAIMS ARISING OUT OF THIS CONTRACT INCLUDING THE
PERFORMANCE OF OBLIGATIONS IN CONNECTION WITH THE WORK HEREUNDER, WHETHER BASED ON
CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE,
SHALL NOT EXCEED IN AGGREGATE ONE THOUSAND DOLLARS ($1,000.00) AND SHALL IN NO EVENT
INCLUDE INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY NATURE INCLUDING, BUT NOT LIMITED TO,
LOSS OF REVENUE OR ITS USE; LOSS BY REASON OF PLANT OR EQUIPMENT SHUTDOWN OR INABILITY
TO OPERATE AT RATED CAPACITY; INCREASED EXPENSE OR OPERATION OF PLANT OR EQUIPMENT;
Form 230 1-2019 Page 3 of 4
AGREEMENT FOR MODIFICATIONS OF
ELECTRIC FACILITIES (NONREFUNDABLE)
TERMS AND CONDITIONS (CONT.)
This limitation of liability section shall prevail over any conflicting or inconsistent provisions contained herein or in any
other applicable document and shall be in effect even if the remedy or remedies set forth herein fail in their essential
purpose.
9. The Customer shall indemnify and hold Consumers, its agents, employees, vendors and contractor(s) harmless
from and against, and shall at Consumers' option undertake the defense of, any and all claim, losses, liability and
damage (including environmental harm) and including reasonable attorney's fees which Consumers might sustain or
incur or which might be asserted by any third party against Consumers as a result of the services provided under this
Agreement, whether based on warranty, contract, tort (including negligence), strict liability or otherwise, unless
caused solely by the negligence of Consumers, its agents or employees.
10. Any assignment or any part thereof by the Customer without the previous written permission of Consumers shall
be void and of no effect. Consumers may subcontract any services hereunder.
11. This agreement does not create an employer/employee relationship between the parties. Consumers will retain
sole and absolute discretion over the manner and means of carrying out Consumers’ responsibilities hereunder.
12. The terms of this Agreement shall not be changed superseded or supplemented, except in writing by an
authorized representative of Consumers and by a duly authorized representative of Customer.
13. This Agreement shall be deemed a Michigan contract and shall be construed in accordance with and governed
by the laws of the State of Michigan. With respect to the subject matter hereof, this Agreement supersedes all
previous representations, understandings and negotiations, either written or oral, between the parties hereto or their
representatives and constitutes the entire contract between the parties. This Agreement is intended for the benefit of
the parties hereto and does not grant any rights to any third parties unless otherwise specifically stated herein. No
part of any purchase order, request for proposal or other documents issued by Customer shall be binding upon
Consumers or affect its rights or obligations hereunder unless signed by a duly authorized representative of
Consumers.
14. This Agreement may be executed and delivered in counterparts, including by a facsimile or an electronic
transmission thereof, each of which shall be deemed an original. Any document generated by the Parties with
15. Additional Items
Form 230 1-2019 Page 4 of 4
Form 547 11-2014
AUTHORIZATION FOR CHANGE IN
STANDARD LIGHTING CONTRACT
(COMPANY-OWNED) FORM 547
Contract Number: 103030946141
Consumers Energy Company is authorized as of , by the City of Muskegon, to make changes,
as listed below, in the lighting system(s) covered by the existing Standard Lighting Contract between the
Company and the City of Muskegon, dated 10/1/2017.
Lighting Type:
General Unmetered Experimental Lighting Rate GU-XL
Notification Number(s):
1047171469
Construction Work Order Number(s):
Except for the changes in the lighting system(s) as herein authorized, all provisions of the aforesaid Standard
Lighting Contract dated 10/1/2017 shall remain in full force and effect.
City of Muskegon
By:
(Signature)
(Printed)
Its
(Title)
This Agreement may be executed and delivered in counterparts, including by a facsimile or an electronic
transmission thereof, each of which shall be deemed an original. Any document generated by the parties with
respect to this Agreement, including this Agreement, may be imaged and stored electronically and introduced as
evidence in any proceeding as if original business records. Neither party will object to the admissibility of such
images as evidence in any proceeding on account of having been stored electronically.
Page 1 of 3
Form 547 11-2014
RESOLUTION
RESOLVED, that it is hereby deemed advisable to authorize Consumers Energy Company to make changes in
the lighting service as provided in the Standard Lighting Contract between the Company and the City of
Muskegon, dated 10/1/2017, in accordance with the Authorization for Change in Standard Lighting Contract
dated ,
heretofore submitted to and considered by this commission council board ;and
RESOLVED, further, that the Clerk be and are authorized to execute such authorization
for change on the behalf of the City.
STATE OF MICHIGAN
COUNTY OF Muskegon
I, , Clerk of the City of Muskegon, do hereby certify that the foregoing
resolution was duly adopted by the commission council board of said municipality, at the meeting
held on .
Dated: Municipal Customer Type: City
Page 2 of 3
Form 547 11-2014
GENERAL UNMETERED EXPERIMENTAL LIGHTING RATE GU-XL
Number of Nominal Luminaire Fixture Type Fixture Style Install Location
Luminaires Watts Type Remove
4 54 LED Cobrahead Cutoff Remove 3rd St between Muskegon Ave
and Houston Ave
6 65 LED Post Top Avery Remove 3rd St between Muskegon Ave
and Houston Ave
5 54 LED Cobrahead Cutoff Select... 3rd St between Houston Ave and
Monroe Ave
6 65 LED Post Top Avery Select... 3rd St between Houston Ave and
Monroe Ave
4 54 LED Cobrahead Cutoff Select... 3rd St between Monroe Ave and
Merrill Ave
6 65 LED Post Top Avery Select... 3rd St between Monroe Ave and
Merrill Ave
1 54 LED Cobrahead Cutoff Select... 3rd St between Merrill Ave and
Mason Ave
3 65 LED Post Top Avery Select... 3rd St between Merrill Ave and
Mason Ave
Page 3 of 3
Form 3808 11-2018
Page 1 of 2
$63,446.00
May 28, 2019
9315554193
CITY OF MUSKEGON
933 TERRACE ST
MUSKEGON MI 49440-1397
05/14/19
3000 1509 0446
3RD STREET - MUSKEGON - STREETLIGHTING - NOTIFICATION NUMBER (s): 1047171469 -
Electric U/G Dist. (Non-Refundable) 1.0 EA $63,446.00 $63,446.00
TOTAL DUE: $63,446.00
NICHOLAS W PAGE -231-332-2640 -
3000 1509 0446
CONSUMERS ENERGY $63,446.00
CEM Support Ctr - Lansing RM 122
PO Box 30162
Lansing, MI 48909-7662 PREPAYMENT REQUEST May 28, 2019
6 330025063712 000063446009 0000 2056 3 300015090446 H
Form 3808 11-2018
Page 2 of 2
Please return completed checklist to one of the following:
E-Mail: POBoxCEServiceRequest@cmsenergy.com
Fax: (517) 374-2424
Notification #: 1047171469
Service Address: 3RD STREET, MUSKEGON
FORM 1250 01-14
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: July 9th, 2019
SUBJECT: City Hall Fire System
SUMMARY OF REQUEST:
Authorize staff to contract with Midstate Security for various upgrades to the fire detection system at City
Hall in the amount of $16,123.46
Four firms were contacted for bids as follows:
Midstate Security .......................................................$16,123.46
Fire Pros, LLC ...........................................................Declined to Bid
Muskegon Fire Equipment Co. ..................................Declined to Bid
Cofessco .....................................................................No Response
FINANCIAL IMPACT:
$16,123.46
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Authorize staff to contract with Midstate Security for the City Hall fire system upgrades.
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: July 9th, 2019
SUBJECT: Engineering Department – Survey Equipment
SUMMARY OF REQUEST:
Authorize the purchase of new survey equipment from TopCon Solutions. New equipment includes a
robotic total station and accessories to replace the current equipment which has been in service since the
early 1990s.
Three bids were solicited for equipment as follows:
GeoShack ...............................$24,591.00
TopCon Solutions ..................$24,991.00
Tiger Supplies ........................$26,645.00
Engineering Department is requesting to purchase the equipment from TopCon Solutions. They are the
second low bidder, however their bid proposal is inclusive of on-site training for staff and the other bids
do not include on-site training.
FINANCIAL IMPACT:
$24,991.00
BUDGET ACTION REQUIRED:
None, funds included in the 19-20 Engineering Budget.
STAFF RECOMMENDATION:
Authorize the purchase of new survey equipment from TopCon Solutions.
Quote
Acct. No. Date Quote #
GEO-14373266 4/10/2019 277374
Steve Hatfield
883 Hampshire Rd, Ste J
Stow OH 44224
United States
Phone: (330) 840-9310
Email:
Bill To Ship To
City of Muskegon City of Muskegon
1350 E. Keating 1350 E. Keating
Muskegon MI 49442 Muskegon MI 49442
United States United States
Sales Rep Expected Delivery Ship Via Terms Expires
18421 MCH Steve Hatfield Freight & Handling Due on receipt 5/31/2019
Item Quant... Description SN Unit Price Total Price
GT-505/PSBWT 1 GT-505/PSBWT 5” Robotic Total Station 19,000.00 19,000.00
1012292-11
RC-5 1001234-01 1 TOPCON RC-5 ACCESSORY KIT 6,123.00 6,123.00
RC-5, 360 Prism, Pole, Case, Tripod
1010084-01 1 FC-5000 FIELD COMPUTER (GEO) 1,995.00 1,995.00
FC-5000
1015317-01 1 FC/SHC5000 RAM CLIP MOUNT KIT 225.00 225.00
Magnet Field 1 MAGNET FIELD SOLUTION SOFTWARE 768.00 768.00
(12-month Sub) (12-MONTH SUBSCRIPTION)
61067 Magnet Site 1 MAGNET OFFICE TOOLS (INCLUDES 12 525.00 525.00
MONTHS MAINTENANCE)
GEO18121 1 Package Discount -4,295.00 -4,295.00
Freight & Handling 1 Freight & Handling Charges 250.00 250.00
We hereby agree to the purchase/rent of the items indicated herein, in accordance with the terms stated
above and in accordance with the “GeoShack Terms and Conditions of Sale” Total $24,591.00
_____________________________________ ________________
Signature Date
_____________________________________
Print Name
Quote Number: 3167
Date: 4/9/2019 3:33:10 PM | Expiration: 5/9/2019 | Quoted By:
Billing Address: Shipping Address:
Fred Pease Fred Pease
City of Muskegon City of Muskegon
Civil Engineer Civil Engineer
Civil Engineer Civil Engineer
MUSKEGON, MI 49440 MUSKEGON, MI 49440
United States United States
231-724-6958 231-724-6958
Qty SKU Name Unit Price Line Total
1 SOK1017224-01 Sokkia iX-505 Robotic $17,550.00 $17,550.00
Total Station 5-
Second With RC
Handle
1 SOK222136103-K Sokkia SX Robotic $5,450.00 $5,450.00
Total Station
Accessory Kit
1 SOK1023141-01 Sokkia SHC5000 Geo $2,295.00 $2,295.00
Data Collector
(Bluetooth, WiFi,
GPS)
1 TOP61065-SURSK Topcon Magnet Field $750.00 $750.00
Software Solution 12
Months
1 TOP1013399-01 Cradle with Pole $150.00 $150.00
Clamp for Topcon FC
5000 Field Controller
1 TOP61067- Topcon Magnet $450.00 $450.00
SURSK Office Software
Promotional Code(s): Subtotal $26,645.00
Special Instructions:
Tax $0.00
Shipping $0.00
Handling $0.00
Grand Total $26,645.00
We appreciate the opportunity to quote and look forward to assist you in the future
This quote serves as a legal sales agreement Should you have any questions regarding this quote
between Tiger Supplies, Inc. and the party above, feel free to reply back to this email or by phone at
dictated by the terms and conditions available at 9738548636.
www.tigersupplies.com and
www.tigersupplies.com/Terms.aspx.
Tiger Supplies, Inc. | 27 Selvage St. Irvington, NJ 07111 | www.tigersupplies.com
Topcon Solutions Store
2314 N. Fifth Street
Proposal
Niles, MI 49120 EST44982
Cust#:695
PO#:
5/28/2019
Billing Address Ship To: Sales Rep
City of Muskegon - Engeering City of Muskegon - Engeering Russ Ciesiolka
Department Department
P.O. Box 536 933 Terrace Street
Muskegon Michigan 49443 Muskegon Michigan 49443
Proposal Expiration Date Payment Terms Shipping Method Additional Notes:
7/31/2019 Net 30 Sales Rep Complete Topcon Robotics system.
Qty Item and Description Unit Cost Amount
1 1012292-11 $19,000.00 $19,000.00
Robotic Total Station, GT-505/PSBWT
1 1001234-01 $6,123.00 $6,123.00
Kit, Topcon Robotic w/RC5 Quickock
360 prism, 8' pole, Tripod
1 1010084-01 $1,995.00 $1,995.00
FC-5000 ATOM GEO N. AMERICA
1 1015317-01 $225.00 $225.00
FC/SHC5000 RAM CLIP mount Kit
1 61065 $768.00 $768.00
SUBSCRIPTION, MAGNET FIELD 12MO
Annual 12 month subscription
1 61067 $480.00 $480.00
PERPETUAL, MAGNET TOOLS
desktop software for interface with Civil 3D
1 Discount - BIM Topcon ($3,600.00) ($3,600.00)
Discount - BIM Topcon
1 CSA-BASIC $695.00 $695.00
Customer Support Program Basic Support.
Annual support. With Civil 3D import/export training. web based
1 Discount - Training ($695.00) ($695.00)
Discount Training C3D setup and training
Subtotal $24,991.00
Shipping Cost
Tax Total (%) $0.00
Total $24,991.00
1 of 2
EST44982
Topcon Solutions Store
2314 N. Fifth Street
Proposal
Niles, MI 49120 EST44982
Cust#:695
PO#:
5/28/2019
Proposal Approval
Print Name Authorized Signature Date
Disclaimer
1) Accounts not paid within 30 days of invoice date will be charged an additional 1.5% (18% annually) per month on the unpaid balance.
2) Jobsite services provided by Topcon Solutions Store and its employees are based entirely upon the use of the owner’s design and survey control data provided by the
owner and then applied to our products. No warranty for these services is either expressed or implied.
Destination Control Statement
These commodities, technology or software were exported in accordance with applicable export control laws and regulations. Diversion contrary to those laws and regulations, as well as the
export laws and regulations of any countries of re-export, is prohibited. In consideration for its purchase of commodities, technology or software from Topcon, Purchaser agrees that it will
determine any license requirements to export the items and, as applicable, to re-export or transfer the items, obtain any license or other official authorization, and carry out any customs
formalities for the export or re-export of the items. Purchaser agrees that it will not re-export or transfer the commodities, technology or software to Cuba, Iran, North Korea, Syria or North
Sudan without a license or other authorization from all applicable export control authorities. It is also unlawful to receive, use, transfer, or re-export these items to persons on all applicable
restricted party lists (see e.g. http://www.bis.doc.gov/ComplianceAndEnforcement/ListsToCheck.htm and http://hmt-sanctions.s3.amazonaws.com/sanctionsconlist.htm where prohibited, or to
use these items in activities involving missiles or unmanned air vehicles, nuclear explosive devices or nuclear propulsion projects, chemical or biological weapons, or any other prohibited
end-use prohibited (see e.g. http://www.access.gpo.gov/bis/ear/ear data.html).
2 of 2
EST44982
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: July 9th, 2019
SUBJECT: METRO Act Permit – ZAYO Group LLC
SUMMARY OF REQUEST:
Approve the request for a permit from ZAYO Group LLC to access and use the public right-of-way within
the city. The purpose of the access is to construct a fiber optic network extension that will service certain
properties in the city. The expansion will affect the following city right-of-way areas:
• Harvey Street from the City/Township Line south towards Mercy Hospital
• Port City Boulevard from Laketon Avenue south to Latimer Drive
• Latimer Drive from Port City Boulevard east to Black Creek Drive
• Black Creek Drive from Latimer Drive south to Sherman Boulevard
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approve the permit for ZAYO Group LLC
Date: 7/9/2019
To: Honorable Mayor and City Commissioners
From: DPW/Equipment
RE: Trackless
SUMMARY OF REQUEST:
The Equipment Division is requesting permission to purchase one (1) Used Trackless
Municipal Vehicle from Bell Equipment, our Dealer for Trackless Equipment. The cost of
this equipment is $67,200.00 coming from the Equipment Division fund.
FINANCIAL IMPACT:
$67,200.00
BUDGET ACTION REQUIRED:
None. Amount was adjusted for in the 3rd quarter Equipment fund re-forecast.
STAFF RECOMMENDATION:
Authorize staff to purchase one (1) Used Trackless Municipal Vehicle from Bell Equipment,
our Dealer for Trackless Equipment.
O:\CLERK\Common\Word\Agenda Items for Next Meeting\2019\070919\14a_Commission approval.doc
2013 Trackless MT6
- 2013 MT6
- Trackless Ser.# 1562
- Cummins 110 H.P Diesel Engine
- 4225 Miles 894 Hrs.
- Turbine Ser.# TRCYCL 107
- Standard Strobe Package
- Multi-Strobe Light Package
- Reverse Flood Lights
- A/C
- Rear counter weights
- Joystick Operations
- Available for Immediate Delivery
- Buffalo Turbine Attachment Included
Thank you for your interest in Bell Equipment Co and Trackless
Sincerely, Michael Cleary
If you wish to proceed with the quote provided, please sign and return.
Authorized Signature and Title:__________________________________________________________
$67,200 Total Price
AGENDA ITEM NO. __________
CITY COMMISSION MEETING
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: July 2, 2019
SUBJECT: City of Muskegon Spring Street Sewer Reroute and Bourdon Street Alley Sewer
SUMMARY OF REQUEST:
To Award the above referenced project to Jackson-Merkey Contractors, Inc. since they were the lowest
responsible bidder with a total bid price of $3,075,529.30 and authorize the clerk to sign the attached
resolutions.
Two (2) bids were received for this project as follows:
Jackson-Merkey Contractors, Inc. .................$3,075,529.30
Kamminga and Roodvoets, Inc. .....................$3,257,356.45
FINANCIAL IMPACT:
$3,075,529.30
BUDGET ACTION REQUIRED:
None at this time. The project was budgeted in the 19-20 budget and estimated costs will be adjusted in a
future reforecast to match the bid prices.
STAFF RECOMMENDATION:
Award the contract to Jackson-Merkey Contractors, Inc and authorize the clerk to sign the resolutions.
A RESOLUTION TO TENTATIVELY AWARD
A CONSTRUCTION CONTRACT FOR WATER SYSTEM IMPROVEMENTS
WHEREAS, the City of Muskegon wishes to construct improvements to its existing water treatment and
distribution system; and
WHEREAS, the water system improvements project formally adopted on March 12, 2019 will be funded
through the state of Michigan’s Drinking Water Revolving Loan Fund (DWRF) program; and
WHEREAS, the City of Muskegon has sought and received construction bids for the proposed
improvements and has received a low bid in the amount of $922,658.79 from Jackson-Merkey
Contractors, Inc.; and
WHEREAS, the City’s engineer, Eng., Inc. has recommended awarding the contract to the low bidder.
NOW THEREFORE BE IT RESOLVED, that the City of Muskegon tentatively awards the contract for
construction of the proposed water system improvements project to Jackson-Merkey Contractors, Inc.,
contingent upon successful financial arrangements with the DWRF.
Yeas:
Nays:
Abstain:
Absent:
I certify that the above Resolution was adopted by _______________________________ (the governing
body of the applicant) on _________________________.
BY: ____________________________________________________________________________
Name and Title (please print or type)
____________________________________________________________________________
Signature Date
III-1 (EQP 3525 REV 1/2015)
A RESOLUTION TO TENTATIVELY AWARD
A CONSTRUCTION CONTRACT
FOR WASTEWATER SYSTEM IMPROVEMENTS
WHEREAS, the City of Muskegon wishes to construct improvements to its existing wastewater
treatment and collection system; and
WHEREAS, the wastewater system improvements project formally adopted on June 26, 2018 will be
funded through Michigan’s SRF Program; and
WHEREAS, the City of Muskegon has sought and received construction bids for the proposed
improvements and has received a low bid in the amount of $2,029,849.34 from Jackson-Merkey
Contractors, Inc.; and
WHEREAS, the project engineer, Eng., Inc. has recommended awarding the contract to the low bidder.
NOW THEREFORE BE IT RESOLVED, that the City of Muskegon tentatively awards the contract
for construction of the proposed wastewater system improvements project to Jackson-Merkey
Contractors, Inc., contingent upon successful financial arrangements with the SRF Program.
Yeas:
Nays:
Abstain:
Absent:
I certify that the above Resolution was adopted by _______________________________ (the governing
body of the applicant) on _________________________.
BY: ______________________________________________________________________________
Name and Title (please print or type)
______________________________________________________________________________
Signature Date
CITY OF MUSKEGON SPRING STREET SEWER REROUTE AND BOURDON STREET ALLEY SEWER
MICHIGAN EGLE SRF PROJECT NO. 5675-01; MICHIGAN EGLE DWRF PROJECT NO. 7449-01;
CITY OF MUSKEGON PROJECTS NO. S-91850 & S-91851
Jackson-Merkey Contractors, Kamminga and Roodvoets,
Tabulation of Bids Opened July 1, 2019 Engineer's Estimate
Inc. Inc.
ITEM ITEM DESCRIPTION UNIT EST UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT
1 Audio Visual Filming LSUM 1 $3,500.00 $3,500.00 $1,700.00 $1,700.00 $4,685.00 $4,685.00
2 Mobilization, Max LSUM 1 $210,000.00 $210,000.00 $222,550.00 $222,550.00 $238,900.00 $238,900.00
3 Dr Structure, Rem Ea 42 $350.00 $14,700.00 $785.00 $32,970.00 $285.00 $11,970.00
4 Sewer, Rem, Less than 24 inch Ft 1268 $12.00 $15,216.00 $23.00 $29,164.00 $17.00 $21,556.00
5 Sewer, Rem, 24 inch to 48 inch Ft 591 $20.00 $11,820.00 $43.00 $25,413.00 $20.00 $11,820.00
6 Sewer, Rem, Over 48 inch Ft 423 $35.00 $14,805.00 $60.00 $25,380.00 $23.00 $9,729.00
7 Abandon Existing 12 inch Sewer Ft 155 $4.00 $620.00 $10.00 $1,550.00 $7.30 $1,131.50
8 Abandon Existing 24 inch Sewer Ft 1226 $10.00 $12,260.00 $23.00 $28,198.00 $21.75 $26,665.50
9 Curb and Gutter, Rem Ft 3139 $7.56 $23,730.84 $4.75 $14,910.25 $4.55 $14,282.45
10 Sidewalk, Rem Syd 348 $8.51 $2,961.48 $6.00 $2,088.00 $9.30 $3,236.40
11 Pavt, Rem, Modified Syd 11805 $8.00 $94,440.00 $3.00 $35,415.00 $3.35 $39,546.75
12 Non Haz Contaminated Material Handling and Disposal, LM Cyd 2963 $26.77 $79,307.66 $50.00 $148,150.00 $51.25 $151,853.75
13 Machine Grading, Modified Sta 32 $1,500.00 $48,000.00 $2,950.00 $94,400.00 $4,500.00 $144,000.00
14 Helical Pile Ea 20 $3,500.00 $70,000.00 $2,200.00 $44,000.00 $2,500.00 $50,000.00
15 Helical Pile, Load Test Ea 1 $500.00 $500.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00
16 Dewatering System LSUM 1 $50,000.00 $50,000.00 $225,750.00 $225,750.00 $350,000.00 $350,000.00
17 Helical Pile Equipment, Furn LSUM 1 $5,000.00 $5,000.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00
18 Surcharge Roadway LSUM 1 $50,000.00 $50,000.00 $72,000.00 $72,000.00 $45,000.00 $45,000.00
19 Erosion Control, Check Dam, Stone Ft 3 $100.00 $300.00 $215.00 $645.00 $75.00 $225.00
20 Erosion Control, Inlet Protection, Fabric Drop Ea 34 $100.00 $3,400.00 $130.00 $4,420.00 $150.00 $5,100.00
21 Erosion Control, Silt Fence Ft 1000 $3.00 $3,000.00 $3.00 $3,000.00 $2.50 $2,500.00
22 Subbase, CIP Cyd 3595 $20.00 $71,900.00 $1.00 $3,595.00 $9.50 $34,152.50
23 Aggregate Base, 5 inch Syd 1361 $6.00 $8,166.00 $6.50 $8,846.50 $9.00 $12,249.00
24 Aggregate Base, 10 inch Syd 10533 $11.50 $121,129.50 $10.75 $113,229.75 $14.00 $147,462.00
25 Backfill, Lightweight, Iron Blast Furnace Slag Aggregate, LM Cyd 1360 $70.00 $95,200.00 $45.00 $61,200.00 $45.00 $61,200.00
26 Aggregate Surface Cse, 6 inch Syd 73 $8.00 $584.00 $13.25 $967.25 $11.50 $839.50
27 Aggregate Surface Cse, 8 inch Syd 400 $9.00 $3,600.00 $14.00 $5,600.00 $12.00 $4,800.00
28 Maintenance Gravel, LM Cyd 100 $15.00 $1,500.00 $13.00 $1,300.00 $40.00 $4,000.00
29 Shoulder, Cl, 1, 6 inch Syd 90 $8.00 $720.00 $21.00 $1,890.00 $14.00 $1,260.00
30 Culv End Sect, 12 inch Ea 2 $350.00 $700.00 $1,100.00 $2,200.00 $650.00 $1,300.00
31 Sewer Tap, 8 inch Ea 1 $250.00 $250.00 $500.00 $500.00 $1,000.00 $1,000.00
32 Sewer Tap, 10 inch Ea 1 $287.00 $287.00 $550.00 $550.00 $1,100.00 $1,100.00
33 Sewer Tap, 30 inch Ea 1 $500.00 $500.00 $1,360.00 $1,360.00 $2,500.00 $2,500.00
34 Video Taping Sewer and Culv Pipe Ft 5009 $2.00 $10,018.00 $2.00 $10,018.00 $3.00 $15,027.00
35 Sanitary Sewer, PVC, 12 inch Ft 15 $70.00 $1,050.00 $285.00 $4,275.00 $72.00 $1,080.00
36 Sanitary Sewer, PVC, 18 inch Ft 389 $90.00 $35,010.00 $98.00 $38,122.00 $90.00 $35,010.00
37 Sanitary Sewer, PVC, 24 inch Ft 40 $100.00 $4,000.00 $440.00 $17,600.00 $125.00 $5,000.00
38 Sanitary Sewer, PVC, 27 inch Ft 1048 $105.00 $110,040.00 $160.00 $167,680.00 $140.00 $146,720.00
39 Sanitary Sewer, PVC, 30 inch Ft 668 $110.00 $73,480.00 $209.00 $139,612.00 $153.00 $102,204.00
40 Sanitary Sewer, PVC, 30 inch, Bore and Jack Ft 190 $600.00 $114,000.00 $915.00 $173,850.00 $960.00 $182,400.00
41 Sanitary Sewer, PVC, 6 inch Ft 100 $30.00 $3,000.00 $60.50 $6,050.00 $38.50 $3,850.00
42 Sanitary Sewer, PVC, 8 inch Ft 1475 $65.00 $95,875.00 $76.60 $112,985.00 $63.00 $92,925.00
43 Sewer, Cl A, 12 inch, Tr Det B Ft 1059 $45.00 $47,655.00 $50.00 $52,950.00 $52.00 $55,068.00
44 Sewer, Cl A, 24 inch, Tr Det B Ft 105 $60.00 $6,300.00 $98.00 $10,290.00 $90.00 $9,450.00
45 Sewer, Cl A, 48 inch, Tr Det B Ft 20 $175.00 $3,500.00 $300.00 $6,000.00 $300.00 $6,000.00
46 Sanitary Manhole, Drop Connection Ea 2 $1,500.00 $3,000.00 $935.00 $1,870.00 $5,500.00 $11,000.00
47 Sewer Bulkhead Ea 1 $350.00 $350.00 $880.00 $880.00 $300.00 $300.00
48 Dr Structure Cover, Adj, Case 1 Ea 5 $465.46 $2,327.30 $620.00 $3,100.00 $450.00 $2,250.00
49 Dr Structure, 48 inch dia Ea 26 $2,500.00 $65,000.00 $2,255.00 $58,630.00 $1,750.00 $45,500.00
50 Dr Structure, 60 inch dia Ea 5 $3,000.00 $15,000.00 $3,160.00 $15,800.00 $2,000.00 $10,000.00
51 Dr Structure, Tap, 8 inch Ea 1 $250.00 $250.00 $550.00 $550.00 $850.00 $850.00
52 Dr Structure, Tap, 12 inch Ea 1 $300.00 $300.00 $1,400.00 $1,400.00 $850.00 $850.00
53 Dr Structure, Temp Lowering Ea 5 $275.00 $1,375.00 $425.00 $2,125.00 $275.00 $1,375.00
54 Dr Structure Cover, ADA Compliant Ea 3 $800.00 $2,400.00 $475.00 $1,425.00 $450.00 $1,350.00
55 Dr Structure Cover, Modified Ea 57 $750.00 $42,750.00 $435.00 $24,795.00 $500.00 $28,500.00
56 Sanitary Manhole, 48 inch Dia Ea 25 $4,000.00 $100,000.00 $3,200.00 $80,000.00 $3,665.00 $91,625.00
57 Sanitary Manhole, 60 inch Dia Ea 3 $4,500.00 $13,500.00 $9,000.00 $27,000.00 $5,250.00 $15,750.00
58 Sanitary Manhole, Meter Station, 84 inch Dia Ea 1 $10,000.00 $10,000.00 $67,400.00 $67,400.00 $50,000.00 $50,000.00
59 HMA Approach Ton 321 $105.00 $33,705.00 $130.00 $41,730.00 $135.00 $43,335.00
60 Textured Asphalt Crosswalk Sft 1220 $3.50 $4,270.00 $13.25 $16,165.00 $14.50 $17,690.00
61 HMA, 13A Ton 2074 $80.00 $165,920.00 $99.60 $206,570.40 $104.60 $216,940.40
62 Driveway, Nonreinf Conc, 6 inch Syd 318 $40.00 $12,720.00 $24.80 $7,886.40 $45.00 $14,310.00
63 Curb and Gutter, Conc, Det F4 Ft 3643 $18.00 $65,574.00 $12.65 $46,083.95 $18.50 $67,395.50
64 Driveway Opening, Conc, Det M Ft 242 $20.00 $4,840.00 $15.00 $3,630.00 $23.65 $5,723.30
65 Detectable Warning Surface Ft 185 $45.00 $8,325.00 $332.00 $61,420.00 $43.50 $8,047.50
66 Curb Ramp Opening, Conc Ft 279 $20.00 $5,580.00 $15.00 $4,185.00 $23.50 $6,556.50
67 Sidewalk Ramp, Conc, 6 inch Sft 1382 $7.00 $9,674.00 $4.50 $6,219.00 $6.05 $8,361.10
68 Sidewalk, Conc, 4 inch Sft 2454 $4.50 $11,043.00 $3.20 $7,852.80 $3.70 $9,079.80
69 Sign, Type III, Erect, Salv Ea 2 $200.00 $400.00 $150.00 $300.00 $350.00 $700.00
70 Sign, Type III, Rem Ea 2 $200.00 $400.00 $150.00 $300.00 $32.00 $64.00
71 Pavt Mrkg, Ovly Cold Plastic, 6 inch, Crosswalk Ft 1146 $2.50 $2,865.00 $3.00 $3,438.00 $2.75 $3,151.50
72 Pavt Mrkg, Ovly Cold Plastic, 24 inch, Stop Bar Ft 176 $10.00 $1,760.00 $10.00 $1,760.00 $12.00 $2,112.00
73 Pavt Mrkg, Waterborne, 4 inch, White Ft 50 $1.00 $50.00 $1.00 $50.00 $0.50 $25.00
74 Pavt Mrkg, Waterborne, 4 inch, Yellow Ft 2740 $0.10 $274.00 $0.50 $1,370.00 $0.50 $1,370.00
75 Pavt Mrkg, Waterborne, 2nd Application, 4 inch, White Ft 50 $1.00 $50.00 $1.00 $50.00 $0.25 $12.50
76 Pavt Mrkg, Waterborne, 2nd Application, 4 inch, Yellow Ft 2740 $0.08 $219.20 $0.50 $1,370.00 $0.25 $685.00
77 Barricade, Type III, High Intensity, Double Sided, Lighted, Furn Ea 38 $115.00 $4,370.00 $120.00 $4,560.00 $55.00 $2,090.00
78 Barricade, Type III, High Intensity, Double Sided, Lighted, Oper Ea 38 $5.00 $190.00 $5.00 $190.00 $1.00 $38.00
79 Lighted Arrow, Type C, Furn Ea 2 $2,000.00 $4,000.00 $500.00 $1,000.00 $750.00 $1,500.00
80 Lighted Arrow, Type C, Oper Ea 2 $100.00 $200.00 $200.00 $400.00 $1.00 $2.00
81 Minor Traf Devices LSUM 1 $20,000.00 $20,000.00 $21,600.00 $21,600.00 $150,000.00 $150,000.00
82 Plastic Drum, High Intensity, Furn Ea 80 $22.00 $1,760.00 $29.00 $2,320.00 $20.00 $1,600.00
83 Plastic Drum, High Intensity, Oper Ea 80 $1.00 $80.00 $1.00 $80.00 $1.00 $80.00
84 Sign, Portable, Changeable Message, Furn Ea 2 $2,000.00 $4,000.00 $3,450.00 $6,900.00 $3,250.00 $6,500.00
85 Sign, Portable, Changeable Message, Oper Ea 2 $100.00 $200.00 $1,000.00 $2,000.00 $1.00 $2.00
86 Sign, Type B, Temp, Prismatic, Furn Sft 588 $4.00 $2,352.00 $4.00 $2,352.00 $3.25 $1,911.00
87 Sign, Type B, Temp, Prismatic, Oper Sft 588 $0.50 $294.00 $1.00 $588.00 $1.00 $588.00
88 Pollinator Tree, Coral Burst Crabapple, 6 foot Ea 16 $200.00 $3,200.00 $500.00 $8,000.00 $500.00 $8,000.00
89 Pollinator Tree, Kwanzan Cherry, 6 foot Ea 16 $200.00 $3,200.00 $475.00 $7,600.00 $500.00 $8,000.00
90 Turf Establishment, Performance Syd 3932 $5.00 $19,660.00 $4.00 $15,728.00 $6.25 $24,575.00
91 Abandon Existing 16 inch Water Main Ft 1165 $7.00 $8,155.00 $9.00 $10,485.00 $13.00 $15,145.00
92 Water Main, DI, 12 inch, Tr Det G Ft 30 $85.00 $2,550.00 $126.00 $3,780.00 $105.00 $3,150.00
93 Water Main, DI, 16 inch, Tr Det G Ft 848 $100.00 $84,800.00 $109.00 $92,432.00 $112.00 $94,976.00
94 Water Main, DI, 6 inch, Tr Det G Ft 50 $60.00 $3,000.00 $93.00 $4,650.00 $78.00 $3,900.00
95 Water Main, DI, 8 inch, Tr Det G Ft 265 $65.00 $17,225.00 $71.00 $18,815.00 $83.00 $21,995.00
96 Water Main, Fusible PVC, 16 inch, Tr Det G Ft 315 $150.00 $47,250.00 $115.00 $36,225.00 $108.00 $34,020.00
97 Fire Hydrant Ea 1 $2,500.00 $2,500.00 $2,765.00 $2,765.00 $3,250.00 $3,250.00
98 Fire Hydrant, Rem Ea 1 $300.00 $300.00 $320.00 $320.00 $200.00 $200.00
99 Gate Valve and Box, 12 inch, Modified Ea 1 $3,000.00 $3,000.00 $2,910.00 $2,910.00 $2,700.00 $2,700.00
100 Gate Valve and Box, 6 inch, Modified Ea 1 $1,500.00 $1,500.00 $1,520.00 $1,520.00 $1,550.00 $1,550.00
101 Gate Valve and Box, 8 inch, Modified Ea 2 $2,500.00 $5,000.00 $1,895.00 $3,790.00 $1,790.00 $3,580.00
102 Gave Valve and Box, 16 inch, Modified Ea 7 $4,000.00 $28,000.00 $7,800.00 $54,600.00 $6,545.00 $45,815.00
103 Water Main Fitting, 12 inch, 45 Deg Bend Ea 3 $1,000.00 $3,000.00 $1,225.00 $3,675.00 $850.00 $2,550.00
104 Water Main Fitting, 12 inch, Cap Off Ea 2 $1,000.00 $2,000.00 $885.00 $1,770.00 $950.00 $1,900.00
105 Water Main Fitting, 12 inch, Sleeve Ea 2 $1,000.00 $2,000.00 $2,610.00 $5,220.00 $1,750.00 $3,500.00
106 Water Main Fitting, 16 inch x 12 inch, Reducer Ea 1 $1,500.00 $1,500.00 $1,465.00 $1,465.00 $1,360.00 $1,360.00
107 Water Main Fitting, 16 inch x 12 inch, Tee Ea 1 $1,500.00 $1,500.00 $2,720.00 $2,720.00 $2,450.00 $2,450.00
108 Water Main Fitting, 16 inch x 16 inch, Tee Ea 2 $1,500.00 $3,000.00 $3,135.00 $6,270.00 $2,700.00 $5,400.00
109 Water Main Fitting, 16 inch x 6 inch, Tee Ea 1 $1,500.00 $1,500.00 $2,365.00 $2,365.00 $1,950.00 $1,950.00
110 Water Main Fitting, 16 inch x 8 inch, Reducer Ea 1 $1,500.00 $1,500.00 $1,455.00 $1,455.00 $1,290.00 $1,290.00
111 Water Main Fitting, 16 inch x 8 inch, Tee Ea 2 $1,500.00 $3,000.00 $2,460.00 $4,920.00 $2,100.00 $4,200.00
112 Water Main Fitting, 16 inch, 45 Deg Bend Ea 12 $1,500.00 $18,000.00 $2,000.00 $24,000.00 $1,700.00 $20,400.00
113 Water Main Fitting, 16 inch, Cap Off Ea 4 $150.00 $600.00 $1,230.00 $4,920.00 $1,460.00 $5,840.00
114 Water Main Fitting, 16 inch, Sleeve Ea 3 $1,500.00 $4,500.00 $4,575.00 $13,725.00 $3,750.00 $11,250.00
115 Water Main Fitting, 6 inch, 45 Deg Bend Ea 2 $600.00 $1,200.00 $500.00 $1,000.00 $510.00 $1,020.00
116 Water Main Fitting, 6 inch, Cap Off Ea 2 $600.00 $1,200.00 $515.00 $1,030.00 $665.00 $1,330.00
117 Water Main Fitting, 6 inch, Sleeve Ea 1 $600.00 $600.00 $1,055.00 $1,055.00 $750.00 $750.00
118 Water Main Fitting, 8 inch x 6 inch, Reducer Ea 1 $800.00 $800.00 $845.00 $845.00 $550.00 $550.00
119 Water Main Fitting, 8 inch, 45 Deg Bend Ea 2 $800.00 $1,600.00 $885.00 $1,770.00 $600.00 $1,200.00
120 Water Main Fitting, 8 inch, Sleeve Ea 1 $800.00 $800.00 $1,210.00 $1,210.00 $810.00 $810.00
121 Water Main, Connect to Existing Ea 9 $2,500.00 $22,500.00 $1,275.00 $11,475.00 $900.00 $8,100.00
122 Dr Structure, Add Depth of 48 inch dia, 8 foot to 15 foot Ft 4 $85.00 $340.00 $700.00 $2,800.00 $93.00 $372.00
123 Sanitary Manhole, 72 inch dia Ea 2 $3,800.00 $7,600.00 $9,500.00 $19,000.00 $6,380.00 $12,760.00
TABULATED TOTALS $2,451,472.98 $3,075,529.30 $3,257,356.45
BIDS AS READ $3,075,529.30 $3,257,356.45
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: July 2, 2019
SUBJECT: 9th Street Area Sanitary Sewer Improvements & Getty Street Forcemain Replacement
SUMMARY OF REQUEST:
To Award above referenced project to Hallack Contracting. since they were the lowest responsible bidder
with a total bid price of $1,899,971.50 and authorize the clerk to sign the attached resolution.
Three (3) bids were received for this project as follows:
Hallack Contracting, Inc. ...............................$1,899,971.50
Jackson-Merkey Contractors .........................$1,931,655.60
Kamminga & Roodvoets................................$2,478,051.99
FINANCIAL IMPACT:
$1,899,971.50
BUDGET ACTION REQUIRED:
None at this time. The project was budgeted in the 19-20 budget and estimated costs will be adjusted in a
future reforecast to match the bid prices.
STAFF RECOMMENDATION:
Award the contract to Hallack Contracting, Inc and authorize the clerk to sign the attached resolution.
CITY OF MUSKEGON
9th Street Area Sewer Improvements
Bid Tabulations
Hallack Contracting Jackson-Merkey Contractors, Inc. Kamminga & Roodvoets, Inc.
ITEM ITEM ESTIMATED
NO. DESCRIPTION UNIT QUANTITY BID UNIT PRICE BID AMOUNT BID UNIT PRICE BID AMOUNT BID UNIT PRICE BID AMOUNT
1 Mobilization, Bonds & Insurance (5% Max.) LSum 1 $75,000.00 $75,000.00 $90,000.00 $90,000.00 $110,000.00 $110,000.00
2 Above Ground Video Survey LSum 1 $5,600.00 $5,600.00 $1,720.00 $1,720.00 $9,385.00 $9,385.00
3 Cold Milling HMA Syd 9,170 $1.50 $13,755.00 $3.20 $29,344.00 $3.20 $29,344.00
4 Tree, Rem, 6 inch to 18 inch Ea 3 $320.00 $960.00 $750.00 $2,250.00 $750.00 $2,250.00
5 Curb and Gutter, Rem LFt 1,980 $2.00 $3,960.00 $4.50 $8,910.00 $5.00 $9,900.00
6 Sidewalk, Rem Syd 102 $4.00 $408.00 $9.40 $958.80 $10.00 $1,020.00
7 Dr Structure, Rem Ea 23 $385.00 $8,855.00 $655.00 $15,065.00 $250.00 $5,750.00
8 Concrete Pavt, Rem Syd 1,140 $5.00 $5,700.00 $8.30 $9,462.00 $7.00 $7,980.00
9 HMA Driveway, Rem Syd 441 $4.00 $1,764.00 $7.80 $3,439.80 $4.50 $1,984.50
10 Salvage & Replace, Wooden Ramp Ea 2 $250.00 $500.00 $190.00 $380.00 $1,500.00 $3,000.00
11 Abandon & Fill Existing Sanitary Manhole Ea 7 $850.00 $5,950.00 $785.00 $5,495.00 $2,500.00 $17,500.00
12 Abandon & Fill Existing Sanitary Sewer Cyd 200 $125.00 $25,000.00 $125.00 $25,000.00 $300.00 $60,000.00
13 Sanitary/Storm Sewer, Rem, 18 inch or less Ft 2,231 $5.00 $11,155.00 $5.00 $11,155.00 $18.00 $40,158.00
14 Contaminated Soils Testing Dlr 4,000 $1.00 $4,000.00 $1.00 $4,000.00 $1.00 $4,000.00
15 Non-Hazardous Contaminated Material Handling and Disposal Ton 1,000 $22.50 $22,500.00 $40.00 $40,000.00 $36.50 $36,500.00
16 Subgrade Undercutting, Type II Cyd 100 $15.00 $1,500.00 $1.00 $100.00 $18.00 $1,800.00
17 Trench Undercutting and Backfill Cyd 500 $15.00 $7,500.00 $1.00 $500.00 $35.00 $17,500.00
18 Maintenance Gravel, LM Cyd 100 $15.00 $1,500.00 $10.00 $1,000.00 $33.50 $3,350.00
19 Subbase, 12 inch, CIP Cyd 2,934 $12.50 $36,675.00 $1.00 $2,934.00 $6.50 $19,071.00
20 Roadway Grading Sta 36.25 $5,250.00 $190,312.50 $2,920.00 $105,850.00 $6,410.00 $232,362.50
21 Aggregate Base, 8 inch, 22A Syd 7,120 $10.00 $71,200.00 $10.50 $74,760.00 $13.50 $96,120.00
22 Aggregate Base, 4 inch, 22A Syd 365 $8.50 $3,102.50 $8.00 $2,920.00 $11.00 $4,015.00
23 Driveway Aggregate, 6 inch, 22A Syd 551 $10.00 $5,510.00 $9.00 $4,959.00 $13.35 $7,355.85
24 Aggregate Surface Course, 8 inch, 21AA Syd 1,165 $15.00 $17,475.00 $10.00 $11,650.00 $17.75 $20,678.75
25 Driveway Surface Aggregate, 6 inch, 21AA Syd 103 $12.50 $1,287.50 $9.00 $927.00 $15.00 $1,545.00
26 Dr Structure Cover, Adj Ea 29 $450.00 $13,050.00 $675.00 $19,575.00 $600.00 $17,400.00
27 Valve Box, Adjust Ea 15 $425.00 $6,375.00 $335.00 $5,025.00 $400.00 $6,000.00
28 Driveway, HMA 36A, 3" (2 Lifts) Ton 106 $156.00 $16,536.00 $155.00 $16,430.00 $160.00 $16,960.00
29 HMA, LVSP - 2" Leveling Ton 1,044 $101.00 $105,444.00 $101.00 $105,444.00 $105.82 $110,476.08
30 HMA, LVSP - 2" Surface Ton 1,044 $105.00 $109,620.00 $105.00 $109,620.00 $109.74 $114,568.56
31 HMA, LVSP - 1.5" (Alley) Ton 30 $171.00 $5,130.00 $170.00 $5,100.00 $175.00 $5,250.00
32 HMA, LVSP - 1.5" (Alley) Ton 30 $176.00 $5,280.00 $175.00 $5,250.00 $180.00 $5,400.00
33 Curb and Gutter, Conc, Det F4 LFt 2,640 $16.00 $42,240.00 $12.00 $31,680.00 $18.00 $47,520.00
34 Concrete Pavt, Nonreinf, 6 inch Sft 7,475 $5.50 $41,112.50 $3.00 $22,425.00 $4.75 $35,506.25
35 Concrete Sidewalk, 4 inch Sft 510 $5.00 $2,550.00 $3.10 $1,581.00 $4.50 $2,295.00
36 Concrete Sidewalk Ramp, 6 inch Sft 560 $7.50 $4,200.00 $5.00 $2,800.00 $6.40 $3,584.00
37 Detectable Warning Surface LFt 50 $35.00 $1,750.00 $72.00 $3,600.00 $45.00 $2,250.00
38 Bore and Jack, 36" Steel Casing (180 +/- LFT) LSum 1 $115,000.00 $115,000.00 $192,500.00 $192,500.00 $95,000.00 $95,000.00
39 Pipe Insulation LFt 265 $5.00 $1,325.00 $13.50 $3,577.50 $11.30 $2,994.50
40 8" Sanitary Sewer LFt 1,692 $100.00 $169,200.00 $78.50 $132,822.00 $97.00 $164,124.00
41 10" Sanitary Sewer LFt 10 $105.00 $1,050.00 $76.50 $765.00 $110.00 $1,100.00
42 12" Sanitary Sewer LFt 10 $110.00 $1,100.00 $80.50 $805.00 $115.00 $1,150.00
43 18" Sanitary Sewer LFt 2,110 $115.00 $242,650.00 $88.00 $185,680.00 $135.00 $284,850.00
44 24" Sanitary Sewer LFt 194 $120.00 $23,280.00 $90.50 $17,557.00 $145.00 $28,130.00
45 30" Sanitary Sewer LFt 317 $125.00 $39,625.00 $105.00 $33,285.00 $179.00 $56,743.00
46 6" Sanitary Lateral LFt 496 $20.00 $9,920.00 $65.00 $32,240.00 $80.00 $39,680.00
47 18" X 6" Wye Ea 29 $850.00 $24,650.00 $500.00 $14,500.00 $425.00 $12,325.00
48 Dewatering LFt 3,275 $5.50 $18,012.50 $10.00 $32,750.00 $77.00 $252,175.00
49 Dr Structure Cover, Type Q Ea 21 $985.00 $20,685.00 $365.00 $7,665.00 $450.00 $9,450.00
50 4' Sanitary Manhole Ea 16 $4,550.00 $72,800.00 $3,990.00 $63,840.00 $4,135.00 $66,160.00
51 4' Sanitary Manhole, Outside Drop Ea 3 $6,000.00 $18,000.00 $18,300.00 $54,900.00 $8,000.00 $24,000.00
52 5' Sanitary Manhole Ea 1 $5,700.00 $5,700.00 $5,090.00 $5,090.00 $5,000.00 $5,000.00
53 7' Sanitary Manhole, "Doghouse" Ea 1 $9,850.00 $9,850.00 $12,200.00 $12,200.00 $7,750.00 $7,750.00
54 Connect to Existing Sanitary Sewer Ea 8 $1,050.00 $8,400.00 $695.00 $5,560.00 $650.00 $5,200.00
55 Bypass Pumping LSum 1 $35,000.00 $35,000.00 $97,500.00 $97,500.00 $75,000.00 $75,000.00
56 Storm CB, 24 inch Dia Ea 3 $1,850.00 $5,550.00 $1,500.00 $4,500.00 $1,250.00 $3,750.00
57 Dr Structure Cover, Type C Ea 3 $1,200.00 $3,600.00 $525.00 $1,575.00 $550.00 $1,650.00
58 12" Storm Sewer, Conc. LFt 252 $50.00 $12,600.00 $66.00 $16,632.00 $45.00 $11,340.00
59 Dr Structure Tap, 12 inch Ea 3 $400.00 $1,200.00 $640.00 $1,920.00 $250.00 $750.00
60 Hold Utility Pole Ea 1 $500.00 $500.00 $1,220.00 $1,220.00 $1,250.00 $1,250.00
61 16" Watermain, DI LFt 25 $165.00 $4,125.00 $125.00 $3,125.00 $170.00 $4,250.00
62 16" x 45° Bend Ea 4 $1,650.00 $6,600.00 $1,690.00 $6,760.00 $2,250.00 $9,000.00
63 Connect to Existing Watermain Ea 2 $4,000.00 $8,000.00 $2,800.00 $5,600.00 $2,500.00 $5,000.00
64 Cut & Plug Existing Watermain Ea 2 $1,500.00 $3,000.00 $500.00 $1,000.00 $1,250.00 $2,500.00
65 Exploratory Digging Hrs 10 $400.00 $4,000.00 $100.00 $1,000.00 $650.00 $6,500.00
66 Erosion Control, Silt Fence LFt 825 $2.00 $1,650.00 $2.70 $2,227.50 $2.40 $1,980.00
67 Inlet Protection Fabric Drop Ea 31 $85.00 $2,635.00 $125.00 $3,875.00 $130.00 $4,030.00
68 Surface Restoration Syd 3,300 $5.00 $16,500.00 $4.00 $13,200.00 $6.75 $22,275.00
69 Irrigation Repair (Allowance) Dlr 2,000 $1.00 $2,000.00 $1.00 $2,000.00 $1.00 $2,000.00
70 Pavt Mrkg, Cold Plastic, 24 inch Stop Bar LFt 130 $11.00 $1,430.00 $12.50 $1,625.00 $12.50 $1,625.00
71 Pavt Mrkg, Cold Plastic, 6 inch Crosswalk LFt 400 $2.50 $1,000.00 $2.95 $1,180.00 $2.95 $1,180.00
72 Pavt Mrkg, Waterborne, 4 inch Yellow LFt 2,470 $0.40 $988.00 $0.45 $1,111.50 $0.45 $1,111.50
73 Pavt Mrkg, Waterborne, 4 inch White LFt 715 $0.40 $286.00 $0.45 $321.75 $0.45 $321.75
74 Barricade, Type III, High Intensity, Lighted, Double Sided, Furn Ea 11 $125.00 $1,375.00 $60.00 $660.00 $70.00 $770.00
75 Barricade, Type III, High Intensity, Lighted, Double Sided, Oper Ea 11 $1.50 $16.50 $1.00 $11.00 $1.00 $11.00
76 Sign, Type B, Temp, Prismatic, Furn Sft 215 $5.00 $1,075.00 $4.00 $860.00 $4.00 $860.00
77 Sign, Type B, Temp, Prismatic, Oper Sft 215 $1.50 $322.50 $1.00 $215.00 $1.00 $215.00
78 Plastic Drum, High Intensity, Furn Ea 100 $19.00 $1,900.00 $16.00 $1,600.00 $26.00 $2,600.00
79 Plastic Drum, High Intensity, Oper Ea 100 $1.50 $150.00 $1.00 $100.00 $1.00 $100.00
80 Minor Traffic Devices LSum 1 $23,550.00 $23,550.00 $77,600.00 $77,600.00 $45,000.00 $45,000.00
81 Railroad Flagger Dlr 3,200 $1.00 $3,200.00 $1.00 $3,200.00 $1.00 $3,200.00
Actual Total: $1,797,957.50 Actual Total: $1,827,664.85 Actual Total: $2,373,880.24
As-Read Total: $1,797,957.50 As-Read Total: $1,827,664.85 As-Read Total: $2,373,880.24
Getty Street Forcemain Replacement
Bid Tabulations
Hallack Contracting Jackson-Merkey Contractors, Inc. Kamminga & Roodvoets, Inc.
ITEM ITEM ESTIMATED
NO. DESCRIPTION UNIT QUANTITY BID UNIT PRICE BID AMOUNT BID UNIT PRICE BID AMOUNT BID UNIT PRICE BID AMOUNT
1 Mobilization LSum 1 $15,000.00 $15,000.00 $5,000.00 $5,000.00 $4,500.00 $4,500.00
2 Above Ground Video Survey LSum 1 $2,045.00 $2,045.00 $935.00 $935.00 $1,250.00 $1,250.00
3 Cold Milling HMA Syd 450 $3.00 $1,350.00 $6.50 $2,925.00 $7.40 $3,330.00
4 Cold Milling HMA (SRF Inelgible) Syd 630 $5.00 $3,150.00 $5.30 $3,339.00 $5.40 $3,402.00
5 Curb & Gutter, Remove LFt 250 $5.50 $1,375.00 $4.80 $1,200.00 $5.00 $1,250.00
6 Roadway Grading Sta 3.0 $2,705.00 $8,115.00 $2,500.00 $7,500.00 $1,250.00 $3,750.00
7 Subgrade Undercutting, Type II Cyd 50 $14.00 $700.00 $1.00 $50.00 $18.00 $900.00
8 Subbase, 12 inch, CIP Cyd 150 $14.00 $2,100.00 $1.00 $150.00 $7.65 $1,147.50
9 Aggregate Base, 8 inch, 22A Syd 450 $7.00 $3,150.00 $13.50 $6,075.00 $13.00 $5,850.00
10 Drainage Structure Cover, Adjust Ea 1 $331.00 $331.00 $675.00 $675.00 $650.00 $650.00
11 Valve Box, Adjust (SRF Inelgible) Ea 2 $501.00 $1,002.00 $335.00 $670.00 $300.00 $600.00
12 HMA, LVSP - 2" Leveling Ton 55 $110.00 $6,050.00 $107.00 $5,885.00 $112.00 $6,160.00
13 HMA, LVSP - 2" Surface Ton 55 $116.00 $6,380.00 $112.00 $6,160.00 $117.00 $6,435.00
14 HMA, LVSP - 2" Leveling (SRF Inelgible) Ton 75 $110.00 $8,250.00 $107.00 $8,025.00 $112.00 $8,400.00
15 HMA, LVSP - 2" Surface (SRF Inelgible) Ton 75 $116.00 $8,700.00 $112.00 $8,400.00 $117.00 $8,775.00
16 Curb & Gutter, Concrete, Det F4 Ft 250 $20.50 $5,125.00 $18.00 $4,500.00 $20.00 $5,000.00
17 Exploratory Digging Hrs 4 $340.00 $1,360.00 $100.00 $400.00 $650.00 $2,600.00
18 8" Forcemain, D.I. LFt 245 $43.00 $10,535.00 $62.50 $15,312.50 $75.00 $18,375.00
19 8" x 45° Bend Ea 2 $932.00 $1,864.00 $565.00 $1,130.00 $500.00 $1,000.00
20 Forcemain Inside Drop, 8 inch Ea 1 $2,110.00 $2,110.00 $5,720.00 $5,720.00 $3,000.00 $3,000.00
21 Cut and Plug Ex. Forcemain Ea 2 $1,580.00 $3,160.00 $750.00 $1,500.00 $500.00 $1,000.00
22 Connect to Ex. Forcemain Ea 1 $1,450.00 $1,450.00 $2,340.00 $2,340.00 $1,500.00 $1,500.00
23 Connect to Ex. Sanitary Manhole Ea 1 $1,450.00 $1,450.00 $1,840.00 $1,840.00 $1,500.00 $1,500.00
24 Erosion Control, Silt Fence LFt 110 $2.00 $220.00 $3.00 $330.00 $2.70 $297.00
25 Surface Restoration Syd 450 $3.00 $1,350.00 $4.00 $1,800.00 $7.50 $3,375.00
26 Erosion Control, Inlet Protection Ea 5 $85.00 $425.00 $125.00 $625.00 $150.00 $750.00
27 Pvt Mrkg, Waterborne, 4", Yellow LFt 755 $1.00 $755.00 $1.75 $1,321.25 $1.75 $1,321.25
28 Barricade, Type III, High Intensity, Lighted, Double Sided, Furn Ea 3 $103.00 $309.00 $60.00 $180.00 $17.00 $51.00
29 Barricade, Type III, High Intensity, Lighted, Double Sided, Oper Ea 3 $1.00 $3.00 $1.00 $3.00 $1.00 $3.00
30 Sign, Type B, Temp, Prismatic, Furn Sft 100 $4.00 $400.00 $3.50 $350.00 $3.50 $350.00
31 Sign, Type B, Temp, Prismatic, Oper Sft 100 $1.00 $100.00 $1.00 $100.00 $1.00 $100.00
32 Plastic Drum, High Intensity, Furn Ea 50 $15.50 $775.00 $16.00 $800.00 $20.00 $1,000.00
33 Plastic Drum, High Intensity, Oper Ea 50 $1.00 $50.00 $1.00 $50.00 $1.00 $50.00
34 Minor Traffic Devices LSum 1 $2,875.00 $2,875.00 $8,700.00 $8,700.00 $6,500.00 $6,500.00
Actual Total: $102,014.00 Actual Total: $103,990.75 Actual Total: $104,171.75
As-Read Total: $102,014.00 As-Read Total: $103,990.75 As-Read Total: $104,171.75
TOTAL OF ALL TOTAL OF ALL TOTAL OF ALL
BID PRICES: $1,899,971.50 BID PRICES: $1,931,655.60 BID PRICES: $2,478,051.99
A RESOLUTION TO TENTATIVELY AWARD
A CONSTRUCTION CONTRACT
FOR WASTEWATER SYSTEM IMPROVEMENTS
WHEREAS, the City of Muskegon wishes to construct improvements to its existing wastewater
treatment and collection system; and
WHEREAS, the wastewater system improvements project formally adopted on June 26, 2018 will be
funded through Michigan’s State Revolving Fund Program; and
WHEREAS, the City of Muskegon has sought and received construction bids for the 9th Street Area
Sanitary Sewer Improvements and Getty Street Forcemain Replacement and has received a low bid in the
amount of $ 1,899,971.50 from Hallack Contracting Inc.; and
WHEREAS, the City of Muskegon’s project engineer, Leo Evans, has recommended awarding the
contract to the low bidder.
NOW THEREFORE BE IT RESOLVED, that the City of Muskegon tentatively awards the contract
for construction of the 9th Street Area Sanitary Sewer Improvements and Getty Street Forcemain
Replacement project to Hallack Contracting Inc., contingent upon successful financial arrangements with
the State Revolving Fund Program.
Yeas:
Nays:
Abstain:
Absent:
I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on July
9, 2019.
BY: Ann, Meisch, City Clerk
______________________________________________________________________________
Signature Date
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: July 2, 2019
SUBJECT: Beidler Sanitary Sewer Replacement
SUMMARY OF REQUEST:
To Award above referenced project to Kamminga and Roodvoets since they were the lowest responsible
bidder with a total bid price of $5,465,514.75 and authorize the clerk to sign the attached resolution.
Two (2) bids were received for this project as follows:
Kamminga & Roodvoets................................$5,465,514.75
Jackson-Merkey Contractors .........................$5,756,222.45
FINANCIAL IMPACT:
$5,465,514.75
BUDGET ACTION REQUIRED:
None at this time. The project was budgeted in the 19-20 budget and estimated costs will be adjusted in a
future reforecast to match the bid prices.
STAFF RECOMMENDATION:
Award the contract to Kamminga and Roodvoets and authorize the clerk to sign the attached resolution.
A RESOLUTION TO TENTATIVELY AWARD
A CONSTRUCTION CONTRACT
FOR WASTEWATER AND WATER SYSTEM IMPROVEMENTS
WHEREAS, the City of Muskegon wishes to construct improvements to its existing wastewater
treatment and collection system and its existing water treatment and distribution system; and
WHEREAS, the wastewater system improvements project formally adopted on June 26, 2018 will be
funded through Michigan’s State Revolving Loan Fund (SRF) program; and
WHEREAS, the water system improvements project formally adopted on March 12, 2019 will be funded
through the state of Michigan’s Drinking Water Revolving Loan Fund (DWRF) program; and
WHEREAS, the City of Muskegon has sought and received construction bids for the Contract No. 1-
Beidler Sanitary Sewer Replacement and has received a low bid in the amount of $5,465,514.75 from
Kamminga and Roodvoets of Grand Rapids, MI; and
WHEREAS, the City of Muskegon’s project engineer, Prein&Newhof, has recommended awarding the
contract to the low bidder.
NOW THEREFORE BE IT RESOLVED, that the City of Muskegon tentatively awards the contract
for construction of the proposed wastewater system improvements project to Kamminga and Roodvoets
of Grand Rapids, MI, contingent upon successful financial arrangements with the SRF and DWRF
Programs.
Yeas:
Nays:
Abstain:
Absent:
I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on July
9, 2019.
BY: Ann Meisch, City Clerk
______________________________________________________________________________
Signature Date
July 2, 2019
2180552
Mr. Leo Evans, P.E.
City of Muskegon
Department of Public Works
1350 Keating Avenue
Muskegon, MI 49442
RE: SRF/DWRF FY 2019 Projects
Beidler Sanitary Sewer Replacement
Dear Mr. Evans:
On Thursday, June 27th, the City received bids for the referenced project. Two bids were received
with prices of $5,465,514.75 and $5,756,222.45. Kamminga and Roodvoets of Grand Rapids, MI
was read low with their bid of $5,465,514.75. The Bid-Tabulation is enclosed for reference.
This project is being financed through both the State Revolving Fund (SRF) and the Drinking Water
Revolving Fund (DWRF). Due to the overlap of the various scopes of work the State has required an
Alternative Justifiable Expenditures calculation to be completed to determine the financing share for
each program, this breakdown is as follows:
SRF Eligible $4,411,999.28
DWRF Eligible $881,156.22
Ineligible Costs $172,359.25
We discussed the project with Kamminga and Roodvoets. They indicated a good understanding of
the project’s critical elements such as phasing, schedule, and criticality of the infrastructure being
worked on. They intend to begin work on the lift station during this winter and the remainder of the
work will occur during the spring and summer of 2020. They did not express any concerns with
completing the project successfully and on time.
Our company has worked on a number of successful projects of similar scope with Kamminga and
Roodvoets in the past, with no major issues.
If you have any questions please do not hesitate to ask.
Sincerely,
Prein&Newhof
Matthew R. Hulst, P.E.
Enclosures: Bid Tabulation Sheets
4910 Stariha Drive Muskegon, MI 49441 t. 231-798-0101 f. 231-798-0337 www.preinnewhof.com
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors
Beidler Sanitary Sewer Replacement, Contract 1 3435 Broadmoor Ave SE 3430 Lund Avenue
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49442
June 27, 2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount
SRF Eligible
1 Mobilization, Max, 10% 1.0 Lsum $545,000.00 $545,000.00 $320,955.00 $320,955.00
2 Traffic Control 1.0 Lsum $20,000.00 $20,000.00 $29,000.00 $29,000.00
3 Minor Traf Devices 1.0 Lsum $102,000.00 $102,000.00 $12,800.00 $12,800.00
4 Tree, Rem, 6 inch to 18 inch 44.0 Ea $165.00 $7,260.00 $165.00 $7,260.00
5 Tree, Rem, 19 inch to 36 inch 16.0 Ea $600.00 $9,600.00 $590.00 $9,440.00
6 Stump, Rem, 6 inch to 18 inch 3.0 Ea $85.00 $255.00 $85.00 $255.00
7 Light Pole, Rem and Replace 2.0 Ea $4,175.00 $8,350.00 $2,500.00 $5,000.00
8 Commercial Sign Removal and Reinstallation 1.0 Lsum $12,000.00 $12,000.00 $15,000.00 $15,000.00
9 Dr Structure, Rem 56.0 Ea $250.00 $14,000.00 $765.00 $42,840.00
10 Dr Structure, Abandon 35.0 Ea $1,200.00 $42,000.00 $1,830.00 $64,050.00
11 Sewer Rem, Less than 24 inch 3,760.0 Ft $6.00 $22,560.00 $27.00 $101,520.00
12 Sewer Rem, 24 inch and Greater 80.0 Ft $20.00 $1,600.00 $52.50 $4,200.00
13 Sanitary Sewer, Abandon 8,900.0 Ft $6.50 $57,850.00 $24.00 $213,600.00
14 Curb and Gutter, Rem 8,040.0 Ft $4.25 $34,170.00 $4.70 $37,788.00
15 Pavt, Rem 2,060.0 Syd $8.75 $18,025.00 $7.70 $15,862.00
16 HMA Surface, Rem 15,050.0 Syd $4.60 $69,230.00 $3.80 $57,190.00
17 Sidewalk, Rem 1,305.0 Syd $7.75 $10,113.75 $8.50 $11,092.50
18 Miscellaneous Electrical Repair Allowance 1.0 Lsum $10,000.00 $10,000.00 $10,000.00 $10,000.00
19 Irrigation Repair 1.0 lsum $15,000.00 $15,000.00 $15,000.00 $15,000.00
20 Contaminated Material Testing Allowance 1.0 Lsum $10,000.00 $10,000.00 $10,000.00 $10,000.00
page 1 of 8 S:\2018\2180552 City of Muskegon\CDS\Contract 01 Beidler Sewer\bid tab 2019-06-27 C1-Beidler Sewer
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors
Beidler Sanitary Sewer Replacement, Contract 1 3435 Broadmoor Ave SE 3430 Lund Avenue
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49442
June 27, 2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount
21 Non-hazardous Contaminated Material Disposal 250.0 Ton $55.00 $13,750.00 $40.00 $10,000.00
22 Erosion Control, Inlet Protection, Fabric Drop 43.0 Ea $150.00 $6,450.00 $150.00 $6,450.00
23 Erosion Control, Silt Fence 300.0 Ft $3.50 $1,050.00 $3.10 $930.00
24 Exploratory Digging 1.0 Ea $1,700.00 $1,700.00 $8,010.00 $8,010.00
25 Machine Grading, Modified 54.0 Sta $4,000.00 $216,000.00 $3,610.00 $194,940.00
26 Aggregate Base, 5 inch, Modified 165.0 Syd $7.25 $1,196.25 $26.00 $4,290.00
27 Aggregate Base, 8 inch, Modified 17,790.0 Syd $10.00 $177,900.00 $10.50 $186,795.00
28 Aggregate Surface Cse, 8" 830.0 Syd $10.00 $8,300.00 $12.00 $9,960.00
29 Approach, Cl I, 6 inch 137.0 Syd $9.25 $1,267.25 $16.00 $2,192.00
30 HMA, 13A 2,700.0 Ton $112.00 $302,400.00 $112.00 $302,400.00
31 HMA 5E1 100.0 Ton $120.00 $12,000.00 $120.00 $12,000.00
32 HMA 3C 100.0 Ton $120.00 $12,000.00 $120.00 $12,000.00
33 HMA, Approach 273.0 Ton $150.00 $40,950.00 $150.00 $40,950.00
34 Conc Pavt, Nonreinf, 9 inch 165.0 Syd $60.00 $9,900.00 $61.25 $10,106.25
35 Driveway, Nonreinf Conc, 6 inch 1,600.0 Syd $41.00 $65,600.00 $32.00 $51,200.00
36 Curb and Gutter, Conc. Det F4 7,935.0 Ft $16.25 $128,943.75 $12.00 $95,220.00
37 Driveway Opening, Conc. Det M 95.0 Ft $24.00 $2,280.00 $12.00 $1,140.00
38 Sidewalk, Conc, 4 inch 5,860.0 Sft $3.80 $22,268.00 $3.00 $17,580.00
39 Sidewalk, Conc, 6 inch 3,005.0 Sft $5.00 $15,025.00 $3.60 $10,818.00
40 Sidewalk Ramp, Conc, 6 inch 2,310.0 Sft $5.90 $13,629.00 $4.80 $11,088.00
41 Detectable Warning Surface 200.0 Ft $33.50 $6,700.00 $27.00 $5,400.00
page 2 of 8 S:\2018\2180552 City of Muskegon\CDS\Contract 01 Beidler Sewer\bid tab 2019-06-27 C1-Beidler Sewer
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors
Beidler Sanitary Sewer Replacement, Contract 1 3435 Broadmoor Ave SE 3430 Lund Avenue
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49442
June 27, 2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount
42 Turf Restoration 60.0 Sta $1,700.00 $102,000.00 $1,000.00 $60,000.00
43 Valve Box, Adjust 11.0 Ea $450.00 $4,950.00 $335.00 $3,685.00
44 Pavt Mrkg, Polyurea, 6 inch, Crosswalk, White 1,480.0 Ft $2.95 $4,366.00 $2.95 $4,366.00
45 Pavt Mrkg, Polyurea, 18 inch, Stop Bar, White 240.0 Ft $8.00 $1,920.00 $8.00 $1,920.00
46 Pavt Mrkg, Polyurea, 4 inch, Yellow 310.0 Ft $5.00 $1,550.00 $5.00 $1,550.00
47 Sewer, Cl E, 12 inch, Tr Det B 1,205.0 Ft $65.00 $78,325.00 $57.00 $68,685.00
48 Sewer, Cl E, 15 inch, Tr Det B 166.0 Ft $120.00 $19,920.00 $74.00 $12,284.00
49 Sewer, Cl E, 36 Inch, Tr Det B 16.0 Ft $180.00 $2,880.00 $220.00 $3,520.00
50 Sewer, Cl E, 54 Inch, Tr Det B 70.0 Ft $265.00 $18,550.00 $320.00 $22,400.00
51 Sewer, Connect to Ex. 12" 2.0 Ea $400.00 $800.00 $410.00 $820.00
52 Sewer, Connect to Ex. 15" 5.0 Ea $500.00 $2,500.00 $705.00 $3,525.00
53 Sewer, Conenect to Ex. 18" 1.0 Ea $700.00 $700.00 $925.00 $925.00
54 Sewer, Connect to Ex. 36" 1.0 Ea $1,225.00 $1,225.00 $2,710.00 $2,710.00
55 Sewer, Connect to Ex. 54" 1.0 Ea $2,000.00 $2,000.00 $4,040.00 $4,040.00
56 Dr Structure, 24 inch dia 13.0 Ea $1,100.00 $14,300.00 $2,210.00 $28,730.00
57 Dr Structure, 48 inch dia 17.0 Ea $1,700.00 $28,900.00 $2,910.00 $49,470.00
58 Dr Structure, 84 inch dia 1.0 Ea $9,000.00 $9,000.00 $19,900.00 $19,900.00
59 Dr Structure Cover, Type B 7.0 Ea $825.00 $5,775.00 $420.00 $2,940.00
60 Dr Structure Cover, Type C 1.0 Ea $825.00 $825.00 $605.00 $605.00
61 Dr Structure Cover, Type K 23.0 Ea $825.00 $18,975.00 $595.00 $13,685.00
62 Dr Structure Cover Adj, Case 1 22.0 Ea $625.00 $13,750.00 $710.00 $15,620.00
page 3 of 8 S:\2018\2180552 City of Muskegon\CDS\Contract 01 Beidler Sewer\bid tab 2019-06-27 C1-Beidler Sewer
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors
Beidler Sanitary Sewer Replacement, Contract 1 3435 Broadmoor Ave SE 3430 Lund Avenue
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49442
June 27, 2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount
63 Dr Structure Tap, 12 inch 9.0 Ft $350.00 $3,150.00 $775.00 $6,975.00
64 Dr Structure Tap, 24 inch 1.0 Ea $650.00 $650.00 $2,770.00 $2,770.00
65 Dr Structure Tap, 54 inch 1.0 Ea $875.00 $875.00 $4,470.00 $4,470.00
66 Sanitary Sewer, 8", Tr Det B 1,581.0 Ft $80.00 $126,480.00 $110.00 $173,910.00
67 Sanitary Sewer, 10", 0 - 16 Ft Deep, Tr Det B 295.0 Ft $100.00 $29,500.00 $180.00 $53,100.00
68 Sanitary Sewer, 10", Over 16 Ft Deep, Tr Det B 603.0 Ft $190.00 $114,570.00 $265.00 $159,795.00
69 Sanitary Sewer, 12", 0 - 16 Ft Deep, Tr Det B 2,292.0 Ft $119.00 $272,748.00 $120.00 $275,040.00
70 Sanitary Sewer, 12", Over 16 Ft Deep, Tr Det B 2,050.0 Ft $120.00 $246,000.00 $130.00 $266,500.00
71 Sanitary Sewer, 15", Tr Det B 51.0 Ft $80.00 $4,080.00 $220.00 $11,220.00
72 Sanitary Sewer, 24", Tr Det B 317.0 Ft $90.00 $28,530.00 $135.00 $42,795.00
73 Sanitary Sewer, 6", HDD 365.0 Ft $100.00 $36,500.00 $84.00 $30,660.00
74 Sanitary Sewer, 8", HDD 383.0 Ft $110.00 $42,130.00 $105.00 $40,215.00
75 Sanitary Sewer, 10", HDD 225.0 Ft $165.00 $37,125.00 $150.00 $33,750.00
76 Steel Casing Pipe, 24" Jacked in Place 60.0 Ft $800.00 $48,000.00 $575.00 $34,500.00
77 Sanitary Manhole, 48" Dia 27.0 Ea $3,500.00 $94,500.00 $5,070.00 $136,890.00
78 Sanitary Manhole, 48" Dia, Over 16 Ft Deep 49.9 VF $350.00 $17,465.00 $815.00 $40,668.50
79 Sanitary Manhole, Doghouse, 48" Dia 1.0 Ea $5,000.00 $5,000.00 $4,880.00 $4,880.00
80 Sanitary Drop Manhole, 48" Dia 9.0 Ea $7,100.00 $63,900.00 $14,600.00 $131,400.00
81 Sanitary Manhole, 60" Dia 1.0 Ea $4,500.00 $4,500.00 $4,510.00 $4,510.00
82 Sanitary Sewer, Wye, 8 inch x 6 inch 6.0 Ea $450.00 $2,700.00 $205.00 $1,230.00
83 Sanitary Sewer, Wye, 10 inch x 6 inch 6.0 Ea $550.00 $3,300.00 $615.00 $3,690.00
page 4 of 8 S:\2018\2180552 City of Muskegon\CDS\Contract 01 Beidler Sewer\bid tab 2019-06-27 C1-Beidler Sewer
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors
Beidler Sanitary Sewer Replacement, Contract 1 3435 Broadmoor Ave SE 3430 Lund Avenue
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49442
June 27, 2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount
84 Sanitary Sewer, Wye, 12 inch x 6 inch 18.0 Ea $650.00 $11,700.00 $685.00 $12,330.00
85 Sanitary Sewer, Wye, 24 inch x 6 inch 6.0 Ea $2,000.00 $12,000.00 $2,950.00 $17,700.00
86 Sanitary Lateral, 6 inch, Public 1,330.0 Ft $50.00 $66,500.00 $70.50 $93,765.00
87 Sanitary Lateral, Connect to Ex. 39.0 Ea $250.00 $9,750.00 $1,750.00 $68,250.00
88 Sanitary Sewer, Connect to Ex. 8" 21.0 Ea $350.00 $7,350.00 $360.00 $7,560.00
89 Sanitary Sewer, Connect to Ex. 12" 2.0 Ea $450.00 $900.00 $420.00 $840.00
90 Sanitary Sewer, Connect to Ex. 15" 1.0 Ea $500.00 $500.00 $500.00 $500.00
91 Sanitary Sewer, Connect to Ex. 24" 1.0 Ea $700.00 $700.00 $1,000.00 $1,000.00
92 Sanitary Sewer, CCTV 8,162.0 Ft $2.25 $18,364.50 $2.40 $19,588.80
93 Force Main, 1.25", Tr Det B 59.0 Ft $40.00 $2,360.00 $43.50 $2,566.50
94 Force Main, 10", Tr Det B 1,343.0 Ft $70.00 $94,010.00 $63.50 $85,280.50
95 Force Main, 10", HDD 2,398.0 Ft $80.00 $191,840.00 $125.00 $299,750.00
96 Force Main, 45o Bend, 10" 8.0 Ea $1,200.00 $9,600.00 $1,740.00 $13,920.00
97 Force Main, Sleeve, 10" 1.0 Ea $750.00 $750.00 $1,400.00 $1,400.00
98 Force Main Discharge Manhole 1.0 Ea $9,000.00 $9,000.00 $11,400.00 $11,400.00
99 Air Release Manhole, 48" Dia 3.0 Ea $7,350.00 $22,050.00 $13,000.00 $39,000.00
100 Grinder Station 1.0 Lsum $55,000.00 $55,000.00 $53,500.00 $53,500.00
101 Sanitary Lift Station 1.0 Lsum $525,000.00 $525,000.00 $533,800.00 $533,800.00
102 Water Main, DI, 6 inch, Tr Det G 24.0 Ft $60.00 $1,440.00 $97.50 $2,340.00
103 Water Main, Sleeve, 6 inch 2.0 Ea $1,100.00 $2,200.00 $1,190.00 $2,380.00
SRF Eligible Subtotal: $4,624,251.50 $5,023,541.05
page 5 of 8 S:\2018\2180552 City of Muskegon\CDS\Contract 01 Beidler Sewer\bid tab 2019-06-27 C1-Beidler Sewer
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors
Beidler Sanitary Sewer Replacement, Contract 1 3435 Broadmoor Ave SE 3430 Lund Avenue
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49442
June 27, 2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount
DWRF Eligible
104 Curb and Gutter, Rem 1,270.0 Ft $4.25 $5,397.50 $4.80 $6,096.00
105 Pavt, Rem 260.0 Syd $8.75 $2,275.00 $9.10 $2,366.00
106 HMA Surface, Rem 1,805.0 Syd $4.60 $8,303.00 $4.20 $7,581.00
107 Sidewalk, Rem 189.0 Syd $7.75 $1,464.75 $12.00 $2,268.00
108 Aggregate Base, 8 inch, Modified 1,835.0 Syd $10.00 $18,350.00 $11.00 $20,185.00
109 HMA, 13A 320.0 Ton $112.00 $35,840.00 $112.00 $35,840.00
110 Driveway, Nonreinf Conc, 6 inch 255.0 Syd $41.00 $10,455.00 $32.00 $8,160.00
111 Curb and Gutter, Conc. Det F4 1,335.0 Ft $16.25 $21,693.75 $12.00 $16,020.00
112 Sidewalk, Conc, 4 inch 1,700.0 Sft $3.80 $6,460.00 $3.00 $5,100.00
113 Sidewalk Ramp, Conc, 6 inch 440.0 Sft $5.90 $2,596.00 $4.80 $2,112.00
114 Detectable Warning Surface 30.0 Ft $33.50 $1,005.00 $27.00 $810.00
115 Valve Box, Adjust 1.0 Ea $450.00 $450.00 $335.00 $335.00
116 Water Main, DI, 6 inch, Tr Det G 1,308.0 Ft $60.00 $78,480.00 $48.50 $63,438.00
117 Water Main, DI, 8 inch, Tr Det G 1,282.0 Ft $62.00 $79,484.00 $56.50 $72,433.00
118 Water Main, Bend, 45 Degree, 6 inch 8.0 Ea $550.00 $4,400.00 $560.00 $4,480.00
119 Water Main, Bend, 45 Degree, 8 inch 3.0 Ea $600.00 $1,800.00 $635.00 $1,905.00
120 Water Main, Reducer, 8 inch x 6 inch 1.0 Ea $575.00 $575.00 $590.00 $590.00
121 Water Main, Sleeve, 6 inch 2.0 Ea $1,100.00 $2,200.00 $1,190.00 $2,380.00
122 Water Main, Sleeve, 8 inch 3.0 Ea $1,525.00 $4,575.00 $1,350.00 $4,050.00
123 Water Main, Tee, 6 inch x 6 inch x 6 inch 4.0 Ea $675.00 $2,700.00 $875.00 $3,500.00
page 6 of 8 S:\2018\2180552 City of Muskegon\CDS\Contract 01 Beidler Sewer\bid tab 2019-06-27 C1-Beidler Sewer
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors
Beidler Sanitary Sewer Replacement, Contract 1 3435 Broadmoor Ave SE 3430 Lund Avenue
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49442
June 27, 2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount
124 Water Main, Tee, 8 inch x 8 inch x 6 inch 3.0 Ea $725.00 $2,175.00 $950.00 $2,850.00
125 Water Main, Cross, 8 inch x 8 inch x 8 inch x 8 inch 1.0 Ea $1,000.00 $1,000.00 $1,390.00 $1,390.00
126 Water Main, Tapping Sleeve and Valve, 8 inch x 8 inch 1.0 Ea $6,000.00 $6,000.00 $4,700.00 $4,700.00
127 Water Service, Corporation Stop, 1 inch 57.0 Ea $450.00 $25,650.00 $850.00 $48,450.00
128 Water Service, Curb Stop and Box, 1 inch 31.0 Ea $500.00 $15,500.00 $850.00 $26,350.00
129 Water Service, 1 inch 3,285.0 Ft $62.00 $203,670.00 $20.00 $65,700.00
130 Water Service, Meter Pit 30.0 Ea $1,600.00 $48,000.00 $1,550.00 $46,500.00
131 Hydrant, Rem 3.0 Ea $250.00 $750.00 $365.00 $1,095.00
132 Hydrant 7.0 Ea $3,100.00 $21,700.00 $3,280.00 $22,960.00
133 Water Main, Abandon 1,930.0 Ft $5.00 $9,650.00 $5.50 $10,615.00
134 Water Main, Rem 500.0 Ft $6.50 $3,250.00 $15.00 $7,500.00
135 Water Main, Valve and Box, 6 inch 9.0 Ea $1,400.00 $12,600.00 $1,630.00 $14,670.00
136 Water Main, Valve and Box, 8 inch 2.0 Ea $1,700.00 $3,400.00 $2,030.00 $4,060.00
137 Water Service Restoration, Private 60.0 Ea $250.00 $15,000.00 $550.00 $33,000.00
138 Sewer, Cl E, 12 inch, Tr Det B 82.0 Ft $65.00 $5,330.00 $58.00 $4,756.00
139 Dr Structure, 24 inch dia 2.0 Ea $1,100.00 $2,200.00 $2,210.00 $4,420.00
140 Dr Structure, 48 inch dia 1.0 Ea $1,700.00 $1,700.00 $2,910.00 $2,910.00
141 Dr Structure Tap, 12 inch 1.0 Ea $350.00 $350.00 $775.00 $775.00
142 Dr Structure Cover, Type C 1.0 Ea $825.00 $825.00 $605.00 $605.00
143 Dr Structure Cover, Type K 2.0 Ea $825.00 $1,650.00 $595.00 $1,190.00
DWRF Eligible Subtotal: $668,904.00 $564,145.00
page 7 of 8 S:\2018\2180552 City of Muskegon\CDS\Contract 01 Beidler Sewer\bid tab 2019-06-27 C1-Beidler Sewer
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors
Beidler Sanitary Sewer Replacement, Contract 1 3435 Broadmoor Ave SE 3430 Lund Avenue
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49442
June 27, 2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount
Non-Eligible
144 Approach, Cl I, 6 inch 150.0 Syd $9.25 $1,387.50 $16.00 $2,400.00
145 HMA, 13A 440.0 Ton $112.00 $49,280.00 $112.00 $49,280.00
146 HMA, Approach 29.0 Ton $150.00 $4,350.00 $150.00 $4,350.00
147 Driveway, Nonreinf Conc, 6 inch 372.0 Syd $41.00 $15,252.00 $31.70 $11,792.40
148 Sidewalk, Conc, 4 inch 400.0 Sft $3.80 $1,520.00 $3.00 $1,200.00
149 Sidewalk, Conc, 6 inch 345.0 Sft $5.00 $1,725.00 $3.60 $1,242.00
150 Curb and Gutter, Conc. Det F4 1,947.0 Ft $16.25 $31,638.75 $12.00 $23,364.00
151 Sanitary Lateral, 6 inch, Private 677.0 Ft $78.00 $52,806.00 $104.00 $70,408.00
152 Sanitary Lateral Restoration, Private 9.0 Ea $1,600.00 $14,400.00 $500.00 $4,500.00
Non-Eligible Subtotal: $172,359.25 $168,536.40
Total Bid $5,465,514.75 $5,756,222.45
page 8 of 8 S:\2018\2180552 City of Muskegon\CDS\Contract 01 Beidler Sewer\bid tab 2019-06-27 C1-Beidler Sewer
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: July 2, 2019
SUBJECT: Westwood Sanitary Sewer Replacement
SUMMARY OF REQUEST:
To Award above referenced project to Kamminga and Roodvoets since they were the lowest responsible
bidder with a total bid price of $1,245,042.00 and authorize the clerk to sign the attached resolution.
Three (3) bids were received for this project as follows:
Kamminga & Roodvoets................................$1,245,042.00
Jackson-Merkey Contractors .........................$1,477,180.50
McCormick Sand, Inc. ...................................$1,516,043.00
FINANCIAL IMPACT:
$1,245,042.00
BUDGET ACTION REQUIRED:
None at this time. The project was budgeted in the 19-20 budget and estimated costs will be adjusted in a
future reforecast to match the bid prices.
STAFF RECOMMENDATION:
Award the contract to Kamminga and Roodvoets and authorize the clerk to sign the attached resolution.
A RESOLUTION TO TENTATIVELY AWARD
A CONSTRUCTION CONTRACT
FOR WASTEWATER AND WATER SYSTEM IMPROVEMENTS
WHEREAS, the City of Muskegon wishes to construct improvements to its existing wastewater
treatment and collection system and its existing water treatment and distribution system; and
WHEREAS, the wastewater system improvements project formally adopted on June 26, 2018 will be
funded through Michigan’s State Revolving Loan Fund (SRF) program; and
WHEREAS, the water system improvements project formally adopted on March 12, 2019 will be funded
through the state of Michigan’s Drinking Water Revolving Loan Fund (DWRF) program; and
WHEREAS, the City of Muskegon has sought and received construction bids for the Contract No. 2-
Westwood Sanitary Sewer Replacement and has received a low bid in the amount of $1,245,042.00 from
Kamminga and Roodvoets of Grand Rapids, MI; and
WHEREAS, the City of Muskegon’s project engineer, Prein&Newhof, has recommended awarding the
contract to the low bidder.
NOW THEREFORE BE IT RESOLVED, that the City of Muskegon tentatively awards the contract
for construction of the proposed wastewater system improvements project to Kamminga and Roodvoets
of Grand Rapids, MI, contingent upon successful financial arrangements with the SRF and DWRF
Programs.
Yeas:
Nays:
Abstain:
Absent:
I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on July
9, 2019.
BY: Ann Meisch, City Clerk
______________________________________________________________________________
Signature Date
July 2, 2019
2180552
Mr. Leo Evans, P.E.
City of Muskegon
Department of Public Works
1350 Keating Avenue
Muskegon, MI 49442
RE: SRF/DWRF FY 2019 Projects
Westwood Sanitary Sewer Replacement
Dear Mr. Evans:
On Monday, July 1st, the City received bids for the referenced project. Three bids were received and
ranged from $1,245,042.00 to $1,516,043.00. Kamminga and Roodvoets of Grand Rapids, MI was
read low with their bid of $1,245,042.00. The Bid-tabulation is enclosed for reference.
This project is being financed through both the State Revolving Fund (SRF) and the Drinking Water
Revolving Fund (DWRF). The breakdown between the programs is as follows:
SRF Eligible $755,097.00
DWRF Eligible $342,140.00
Ineligible Costs $147,805.00
We discussed the project with Kamminga and Roodvoets. They indicated a good understanding of
the project’s critical elements such as phasing, schedule, and coordination/communication with
residents. They are open to beginning work yet this fall after EGLE order of approval on August 8,
2020; however, the timeline is dependent on the weather this summer and progress on existing
projects. If they are unable to complete the project before winter 2019-2020, they will be able to
begin the project during spring 2020 or thereafter. The contractor did not express any concerns with
completing the project successfully and on time.
Our company has worked on a number of successful projects of similar scope with Kamminga and
Roodvoets in the past, with no major issues.
If you have any questions please do not hesitate to ask.
Sincerely,
Prein&Newhof
Matthew R. Hulst, P.E.
Enclosures: Bid Tabulation Sheets
4910 Stariha Drive Muskegon, MI 49441 t. 231-798-0101 f. 231-798-0337 www.preinnewhof.com
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd 3rd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors McCormick Sand, Inc
Westwood Sanitary Sewer Replacement, Contract No. 2 3435 Broadmoor Ave SE 3430 Lund Ave 5430 Russell Rd
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49441 Twin Lake, MI 49457
7/1/2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount
SRF Eligible
1 Mobilization, Max, 10% 1.0 Lsum $107,800.00 $107,800.00 $145,000.00 $145,000.00 $150,000.00 $150,000.00
2 Traffic Control 1.0 Lsum $7,000.00 $7,000.00 $5,500.00 $5,500.00 $132,000.00 $132,000.00
3 Minor Traf Devices 1.0 Lsum $9,750.00 $9,750.00 $2,500.00 $2,500.00 $20,000.00 $20,000.00
4 Tree, Rem, 6 inch to 18 inch 2.0 Ea $350.00 $700.00 $750.00 $1,500.00 $750.00 $1,500.00
5 Tree, Rem, 19 inch to 36 inch 1.0 Ea $1,100.00 $1,100.00 $1,750.00 $1,750.00 $1,700.00 $1,700.00
6 Dr Structure, Rem 26.0 Ea $250.00 $6,500.00 $785.00 $20,410.00 $850.00 $22,100.00
7 Sewer Rem, Less than 24 inch 2,200.0 Ft $6.00 $13,200.00 $23.00 $50,600.00 $15.00 $33,000.00
8 Sewer, Abandon 1,080.0 Ft $6.00 $6,480.00 $10.00 $10,800.00 $10.00 $10,800.00
9 Curb and Gutter Rem 3,380.0 Ft $3.50 $11,830.00 $4.00 $13,520.00 $5.00 $16,900.00
10 Pavt, Rem 640.0 Syd $7.00 $4,480.00 $6.00 $3,840.00 $10.00 $6,400.00
11 HMA Surface, Rem 4,910.0 Syd $2.50 $12,275.00 $4.00 $19,640.00 $3.00 $14,730.00
12 Sidewalk, Rem 30.0 Syd $8.00 $240.00 $6.00 $180.00 $10.00 $300.00
13 Erosion Control, Inlet Protection, Fabric Drop 3.0 Ea $200.00 $600.00 $125.00 $375.00 $75.00 $225.00
14 Machine Grading, Modified 18.0 Sta $1,900.00 $34,200.00 $2,900.00 $52,200.00 $3,000.00 $54,000.00
15 Aggregate Base, 8 inch, Modified 4,910.0 Syd $11.50 $56,465.00 $10.50 $51,555.00 $12.50 $61,375.00
16 HMA, 13A 850.0 Ton $105.00 $89,250.00 $98.70 $83,895.00 $103.70 $88,145.00
17 Driveway, Nonreinf Conc, 6 inch 640.0 Syd $42.00 $26,880.00 $24.30 $15,552.00 $35.00 $22,400.00
18 Curb and Gutter, Conc. Det F4 3,380.0 Ft $15.00 $50,700.00 $12.55 $42,419.00 $14.00 $47,320.00
19 Sidewalk, Conc, 4 inch 270.0 Sft $3.50 $945.00 $3.00 $810.00 $5.00 $1,350.00
20 Turf Restoration 20.0 Sta $1,000.00 $20,000.00 $500.00 $10,000.00 $1,200.00 $24,000.00
21 Valve Box, Adjust 1.0 Ea $450.00 $450.00 $450.00 $450.00 $850.00 $850.00
22 Sanitary Sewer, 8", Tr Det B 2,039.0 Ft $40.00 $81,560.00 $78.50 $160,061.50 $80.00 $163,120.00
23 Sanitary Sewer, 12", Tr Det B 16.0 Ft $75.00 $1,200.00 $80.50 $1,288.00 $90.00 $1,440.00
page 1 of 4 S:\2018\2180552 City of Muskegon\CDS\Contract 02 Westwood Sewer\bid tab 2019-07-01 C2-Westwood
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd 3rd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors McCormick Sand, Inc
Westwood Sanitary Sewer Replacement, Contract No. 2 3435 Broadmoor Ave SE 3430 Lund Ave 5430 Russell Rd
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49441 Twin Lake, MI 49457
7/1/2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount
24 Sanitary Manhole, 48 inch Dia 10.0 Ea $4,000.00 $40,000.00 $3,990.00 $39,900.00 $5,000.00 $50,000.00
25 Sanitary Drop Manhole, 48 inch Dia 3.0 Ea $5,500.00 $16,500.00 $5,500.00 $16,500.00 $7,900.00 $23,700.00
26 Sanitary Sewer, Wye, 8 inch x 6 inch 28.0 Ea $500.00 $14,000.00 $500.00 $14,000.00 $350.00 $9,800.00
27 Sanitary Lateral, 6 inch, Public 755.0 Ft $50.00 $37,750.00 $70.00 $52,850.00 $34.00 $25,670.00
28 Sanitary Lateral, Connect to Ex. 28.0 Ea $150.00 $4,200.00 $1,750.00 $49,000.00 $500.00 $14,000.00
29 Sanitary Sewer, Connect to Ex. 8" 2.0 Ea $875.00 $1,750.00 $360.00 $720.00 $550.00 $1,100.00
30 Sanitary Sewer, Connect to Ex. 12" 1.0 Ea $950.00 $950.00 $420.00 $420.00 $600.00 $600.00
31 Sanitary Sewer, Connect to Ex. 18" 1.0 Ea $1,400.00 $1,400.00 $1,000.00 $1,000.00 $1,500.00 $1,500.00
32 Sanitary Sewer, Plug, 8 inch 1.0 Ea $300.00 $300.00 $250.00 $250.00 $250.00 $250.00
33 Sanitary Sewer, CCTV 2,055.0 Ft $2.00 $4,110.00 $2.40 $4,932.00 $2.00 $4,110.00
34 Sewer, Cl E, 10 inch, Tr Det B 13.0 Ft $38.00 $494.00 $52.00 $676.00 $42.00 $546.00
35 Sewer, Cl E, 12 inch, Tr Det B 476.0 Ft $38.00 $18,088.00 $52.00 $24,752.00 $42.00 $19,992.00
36 Sewer, Cl E, 15 inch, Tr Det B 760.0 Ft $40.00 $30,400.00 $68.00 $51,680.00 $45.00 $34,200.00
37 Sewer, Connect to Ex. 10" 1.0 Ea $500.00 $500.00 $410.00 $410.00 $550.00 $550.00
38 Sewer, Connect to Ex. 12" 1.0 Ea $900.00 $900.00 $410.00 $410.00 $550.00 $550.00
39 Dr Structure, 48 inch dia 16.0 Ea $1,600.00 $25,600.00 $2,210.00 $35,360.00 $2,200.00 $35,200.00
40 Dr Structure Cover, Type B 4.0 Ea $800.00 $3,200.00 $365.00 $1,460.00 $460.00 $1,840.00
41 Dr Structure Cover, Type K 12.0 Ea $900.00 $10,800.00 $525.00 $6,300.00 $520.00 $6,240.00
42 Dr Structure Cover Adj, Case 1 1.0 Ea $550.00 $550.00 $700.00 $700.00 $950.00 $950.00
SRF Eligible Subtotal: $755,097.00 $995,165.50 * $1,104,453.00
DWRF Eligible
43 Water Main, DI, 6 inch, Tr Det G 89.0 Ft $70.00 $6,230.00 $75.00 $6,675.00 $55.00 $4,895.00
44 Water Main, DI, 8 inch, Tr Det G 1,631.0 Ft $60.00 $97,860.00 $50.00 $81,550.00 $60.00 $97,860.00
45 Water Main, Bend, 45 Degree, 8 inch 8.0 Ea $775.00 $6,200.00 $600.00 $4,800.00 $800.00 $6,400.00
page 2 of 4 S:\2018\2180552 City of Muskegon\CDS\Contract 02 Westwood Sewer\bid tab 2019-07-01 C2-Westwood
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd 3rd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors McCormick Sand, Inc
Westwood Sanitary Sewer Replacement, Contract No. 2 3435 Broadmoor Ave SE 3430 Lund Ave 5430 Russell Rd
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49441 Twin Lake, MI 49457
7/1/2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount
46 Water Main, Bend, 11 1/4 Degree, 8 inch 1.0 Ea $600.00 $600.00 $600.00 $600.00 $350.00 $350.00
47 Water Main, Reducer, 8 inch x 6 inch 2.0 Ea $485.00 $970.00 $600.00 $1,200.00 $450.00 $900.00
48 Water Main, Reducer, 12 inch x 8 inch 1.0 Ea $650.00 $650.00 $950.00 $950.00 $750.00 $750.00
49 Water Main, Sleeve, 6 inch 1.0 Ea $1,300.00 $1,300.00 $1,190.00 $1,190.00 $1,100.00 $1,100.00
50 Water Main, Sleeve, 8 inch 1.0 Ea $1,750.00 $1,750.00 $1,350.00 $1,350.00 $1,300.00 $1,300.00
51 Water Main, Tee, 8 inch x 8 inch x 6 inch 6.0 Ea $750.00 $4,500.00 $950.00 $5,700.00 $750.00 $4,500.00
52 Water Main, Tee, 8 inch x 8 inch x 8 inch 1.0 Ea $800.00 $800.00 $1,200.00 $1,200.00 $800.00 $800.00
53 Water Main, Cross, 8-inch x 8-inch x 8-inch x 8-inch 1.0 Ea $1,200.00 $1,200.00 $1,800.00 $1,800.00 $2,000.00 $2,000.00
54 Water Service, Corporation Stop, 1 inch 28.0 Ea $350.00 $9,800.00 $850.00 $23,800.00 $600.00 $16,800.00
55 Water Service, Corporation Stop, 2 inch 1.0 Ea $900.00 $900.00 $2,500.00 $2,500.00 $1,100.00 $1,100.00
56 Water Service, Curb Stop and Box, 1 inch 27.0 Ea $500.00 $13,500.00 $850.00 $22,950.00 $650.00 $17,550.00
57 Water Service, 1 inch 3,035.0 Ft $45.00 $136,575.00 $25.00 $75,875.00 $25.00 $75,875.00
58 Water Service, 2 inch 35.0 Ft $60.00 $2,100.00 $50.00 $1,750.00 $45.00 $1,575.00
59 Hydrant, Rem 4.0 Ea $250.00 $1,000.00 $350.00 $1,400.00 $780.00 $3,120.00
60 Hydrant 6.0 Ea $3,000.00 $18,000.00 $3,000.00 $18,000.00 $2,750.00 $16,500.00
61 Water Main, Abandon 1,965.0 Ft $7.00 $13,755.00 $10.00 $19,650.00 $6.00 $11,790.00
62 Water Main, Rem 60.0 Ft $10.00 $600.00 $15.00 $900.00 $15.00 $900.00
63 Water Main, Valve and Box, 6 inch 6.0 Ea $1,000.00 $6,000.00 $1,520.00 $9,120.00 $1,750.00 $10,500.00
64 Water Main, Valve and Box, 8 inch 4.0 Ea $1,500.00 $6,000.00 $1,895.00 $7,580.00 $2,100.00 $8,400.00
65 Water Main, Cap, 8 inch 2.0 Ea $300.00 $600.00 $750.00 $1,500.00 $250.00 $500.00
66 Water Service Restoration, Private 15.0 Ea $750.00 $11,250.00 $1,500.00 $22,500.00 $2,400.00 $36,000.00
DWRF Eligible Subtotal: $342,140.00 $314,540.00 $321,465.00
Non-Eligible
67 Sanitary Lateral, 6 inch, Private 1,295.0 Ft $79.00 $102,305.00 $105.00 $135,975.00 $45.00 $58,275.00
page 3 of 4 S:\2018\2180552 City of Muskegon\CDS\Contract 02 Westwood Sewer\bid tab 2019-07-01 C2-Westwood
3355 Evergreen Dr. NE Grand Rapids, MI 49525
t. (616) 364-8491 f. (616) 364-6955
Bid Tabulation
Owner: 1st 2nd 3rd
City of Muskegon
Project Title: Kamminga & Roodvoets Jackson-Merkey Contractors McCormick Sand, Inc
Westwood Sanitary Sewer Replacement, Contract No. 2 3435 Broadmoor Ave SE 3430 Lund Ave 5430 Russell Rd
Bid Date & Time: Project #: Grand Rapids, MI 49512 Muskegon, MI 49441 Twin Lake, MI 49457
7/1/2019 at 2:00 PM 2180552
Item No. Description Quantity Unit Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount
68 Sanitary Cleanout 21.0 Ea $500.00 $10,500.00 $500.00 $10,500.00 $850.00 $17,850.00
69 Sanitary Lateral Restoration, Private 14.0 Ea $2,500.00 $35,000.00 $1,500.00 $21,000.00 $1,000.00 $14,000.00
Non-Eligible Subtotal: $147,805.00 $167,475.00 $90,125.00
Total Bid $1,245,042.00 $1,477,180.50 * $1,516,043.00
Alternate No. 1
70 Sanitary Lateral, 6 inch, Private 1.0 Ft $79.00 $79.00 $200.00 $200.00 $49.00 $49.00
71 Sanitary Lateral Restoration, Private 1.0 Ea $2,500.00 $2,500.00 $2,000.00 $2,000.00 $2,625.00 $2,625.00
* Denotes correction made by Engineer
page 4 of 4 S:\2018\2180552 City of Muskegon\CDS\Contract 02 Westwood Sewer\bid tab 2019-07-01 C2-Westwood
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: July 2, 2019
SUBJECT: Jefferson-Strong Sanitary Sewer Replacement
SUMMARY OF REQUEST:
To Award above referenced project to Jackson-Merkey Contractors since they were the lowest responsible
bidder with a total bid price of $1,198,471.75 and authorize the clerk to sign the attached resolution.
Three (3) bids were received for this project as follows:
Jackson-Merkey Contractors .........................$1,198,471.75
Kamminga & Roodvoets................................$1,323,525.50
McCormick Sand, Inc. ...................................$1,556,247.00
FINANCIAL IMPACT:
$1,198,471.75
BUDGET ACTION REQUIRED:
None at this time. The project was budgeted in the 19-20 budget and estimated costs will be adjusted in a
future reforecast to match the bid prices.
STAFF RECOMMENDATION:
Award the contract to Jackson-Merkey Contractors and authorize the clerk to sign the attached resolution.
A RESOLUTION TO TENTATIVELY AWARD
A CONSTRUCTION CONTRACT
FOR WASTEWATER AND WATER SYSTEM IMPROVEMENTS
WHEREAS, the City of Muskegon wishes to construct improvements to its existing wastewater
treatment and collection system and its existing water treatment and distribution system; and
WHEREAS, the wastewater system improvements project formally adopted on June 26, 2018 will be
funded through Michigan’s State Revolving Loan Fund (SRF) program; and
WHEREAS, the water system improvements project formally adopted on March 12, 2019 will be funded
through the state of Michigan’s Drinking Water Revolving Loan Fund (DWRF) program; and
WHEREAS, the City of Muskegon has sought and received construction bids for the Contract No. 3-
Jefferson/Strong Sanitary Sewer Replacement and has received a low bid in the amount of $1,198,471.75
from Jackson-Merkey Contractors, Inc. of Muskegon, MI; and
WHEREAS, the City of Muskegon’s project engineer, Prein&Newhof, has recommended awarding the
contract to the low bidder.
NOW THEREFORE BE IT RESOLVED, that the City of Muskegon tentatively awards the contract
for construction of the proposed wastewater system improvements project to Jackson-Merkey
Contractors, Inc. of Muskegon, MI, contingent upon successful financial arrangements with the SRF and
DWRF Programs.
Yeas:
Nays:
Abstain:
Absent:
I certify that the above Resolution was adopted by the City Commission of the City of Muskegon on July
9, 2019.
BY: Ann Meisch, City Clerk
______________________________________________________________________________
Signature Date
July 2, 2019
2180552
Mr. Leo Evans, P.E.
City of Muskegon
Department of Public Works
1350 Keating Avenue
Muskegon, MI 49442
RE: SRF/DWRF FY 2019 Projects
Jefferson/Strong Sanitary Sewer Replacement
Dear Mr. Evans:
On Tuesday, July 2nd, the City received bids for the referenced project. Three bids were received and
ranged from $1,198,471.75 to $1,481,618.00. Jackson-Merkey Contractors, Inc. was read low with
their bid of $1,198,471.75. The Bid-tabulation is enclosed for reference.
This project is being financed through both the State Revolving Fund (SRF) and the Drinking Water
Revolving Fund (DWRF). The breakdown between the programs is as follows:
SRF Eligible $1,136,598.75
DWRF Eligible $61,873.00
We discussed the project with Jackson-Merkey. They indicated a good understanding of the
project’s critical elements such as phasing, schedule, and the tight working conditions. They intend
to begin work in the spring to early summer of 2020. They did not express any concerns with
completing the project successfully and on time.
Our company has worked on a number of successful projects of similar scope with Jackson-Merkey
in the past, with no major issues.
If you have any questions please do not hesitate to ask.
Sincerely,
Prein&Newhof
Matthew R. Hulst, P.E.
Enclosures: Bid Tabulation Sheets
4910 Stariha Drive Muskegon, MI 49441 t. 231-798-0101 f. 231-798-0337 www.preinnewhof.com
AGENDA ITEM NO. __________
CITY COMMISSION MEETING __
TO: Honorable Mayor and City Commission
FROM: Department of Public Works
DATE: July 9th, 2019
SUBJECT: Consumers Energy – LED Upgrade Phase 3
SUMMARY OF REQUEST:
Authorize the DPW Director and City Clerk to sign the Agreement and pay the invoice for the Phase 3
Streetlight LED Conversion Project with Consumers Energy.
FINANCIAL IMPACT:
$636,001.00
BUDGET ACTION REQUIRED:
None, included in FY19-20 budget.
STAFF RECOMMENDATION:
Authorize the DPW Director and City Clerk to sign the required documents.
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