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CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 10, 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:
A. Certificate of Recognition for John and Angie King
□ PUBLIC COMMENT ON AGENDA ITEMS:
□ CONSENT AGENDA:
A. Approval of Minutes City Clerk
B. MUPD Radar Message Trailer Public Safety/MUPD
C. Increase in General Fund Transfer to LC Walker Arena Fund and Farmers
Market/Kitchen 242 Fund Finance
D. Updates to MERS Defined Contribution Plan Adoption Agreements
Finance
E. Update to MERS Defined Benefit Plan Adoption Agreement – Command
Finance
F. MDNR Urban Forestry Grant DPW
G. Prein & Newhof Lakeshore Drive Amendment #1 DPW
H. Pavement Warranty Resolutions DPW
I. Amendment to Vacant Building Ordinance and Vacant Building
Registration Fees Planning Department
J. LC Walker Arena Restroom Renovations City Manager
K. AmeriBank RFP Recommendation Economic Development
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□ PUBLIC HEARINGS:
□ UNFINISHED BUSINESS:
□ NEW BUSINESS:
A. PILOT – Samaritas Planning Department
□ ANY OTHER BUSINESS:
□ PUBLIC COMMENT ON NON-AGENDA ITEMS:
► 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. Attorney/Client Privileged Communication
□ 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: September 5, 2019
Here is a quick outline of the items on our agendas:
Work Session:
1. We will be considering a PILOT agreement for Samaritas to build affordable housing on
the corner of Western Avenue and Spring Street.
2. We have received two proposal for the redevelopment of 880 First Street. Staff will be
making a recommendation to select one of the proposals.
3. We are looking to establish a block party policy with associated fees. For many years, we
did not allow block parties. Staff has met to discuss the value that these types of events
bring to a neighborhood, and we are recommending that we begin allowing them. The
parties offer a great opportunity for neighbors to build community.
4. We are seeking significant amendments to the vacant building ordinance and associated
fees) to make it more user-friendly. The goal is to use the ordinance to help encourage
redevelopment rather than simply to be a punitive fine for owners of long-vacant
properties. We expect this to result in fewer registered structures.
5. DPW Director will be in attendance to provide an update on the 2020 construction
schedule for Beach Street. If you recall, a significant portion of the street along PM Park
will be rebuilt as part of a county water main project, and we will be breaking ground on
the proposed traffic circle at Beach and Lakeshore Drive.
6. We would like to begin a conversation on the prohibition of smoking tobacco products at
parks and in the public spaces downtown. We have had a problem with smoking-related
litter throughout the downtown and much of Pere Marquette Park this year. Also, with
the indoor smoking ban in place, many downtown restaurants and bars simply send their
customers out the front door and onto Western Ave to smoke. We would like the ability
to send these people to the rear of the buildings (alleys, etc). This proposal would help
accomplish our objectives and would start treating the smoking of tobacco in public
spaces similarly to the use of marijuana in public spaces throughout the city.
7. We would like to discuss the implementation of a signal warrant analysis. The signals that
we would like to consider removing are on Wood/Irwin, Spring/Webster, and
Sherman/Wickham.
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. The purchase of a radar/message trailer for the police department.
c. Increasing the General Fund transfers to the Arena and Farmers Market Funds.
d. We have a number of additional MERS agreements that need to be
updated/approved related to the DEFINED CONTRIBUTION PROGRAM. This is
similar to the group of agreements approved at the last Commission meeting.
e. We have a number of additional MERS agreements that need to be
updated/approved related to the DEFINED BENEFIT PROGRAM. This is similar to
the group of agreements approved at the last Commission meeting.
f. We are seeking approval to apply for an urban forestry grant to help guide the city
when adding/replacing trees.
g. We are seeking approval of an amendment to the contract with Prein & Newhof
related to additional engineering work on the Lakeshore Drive project.
h. We are seeking approval of the attached pavement warranty resolution. This is a
requirement of the State for all projects that use a certain amount of state/federal
funding.
i. We are seeking approval of the changes to the vacant building ordinance and
related fees, as per the work session.
j. We are seeking approval to accept the bid from Platinum Construction for the
relocation of the restrooms at the LC walker Arena.
k. We are seeking to award the 880 First Street project to Ferguson development
and Brianna Scott.
2. Under New Business, we are asking the Commission to consider the following:
a. A PILOT Agreement with Samaritas for the construction of affordable housing at
the corner of Spring Street and Western Ave.
3. Closed Session – Attorney/Client Correspondence
Let me know if you have any questions/comments/concerns
Frank
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 9/10/19 Title: Approval of Minutes
Submitted By: Ann Marie Meisch, MMC Department: City Clerk
Brief Summary: To approve the minutes of the August 27, 2019 Regular Meeting.
Detailed Summary: N/A
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To approve the minutes of the August 27, 2019 Regular Meeting.
For City Clerk Use Only:
Commission Action:
CITY OF MUSKEGON
CITY COMMISSION MEETING
AUGUST 27, 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, August 27, 2019, Pastor
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
Byron Turnquist, Ken Johnson, Debra Warren, Dan Rinsema-Sybenga, and Willie
German, Jr., City Manager Frank Peterson, City Attorney John Schrier, and City
Clerk Ann Meisch.
2019-66 CONSENT AGENDA:
A. Approval of Minutes City Clerk
SUMMARY OF REQUEST: To approve the minutes of the August 12, 2019
Worksession meeting and the August 13, 2019 Regular Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
C. 1531 Beidler Street Sale City Manager
SUMMARY OF REQUEST: City Staff is requesting approval of the Quit Claim Deed
to sell 1531 Beidler to Alfredo Fajardo Godoy for $1.00. This property was
acquired via tax reversion. Subsequent staff analysis determined that the time
commitment to the property’s renovation exceeded the city’s abilities, and staff
began to prep the structure for demolition. Mr. Godoy is a renter in the area and
inquired about rehabilitating the property into an owner-occupied home for his
family. He has met with SAFEbuilt on site and they have a tentative plan for
renovation that includes immediately replacing the roof, installing new internal
structural supports, and completing exterior landscaping. The remainder of the
renovation will take 6-9 months. Staff recommends providing Mr. Godoy the
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opportunity to purchase and save the structure.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the Mayor and Clerk to sign the Quit
Claim Deed.
E. Approval of a Neighborhood Enterprise Zone Certificate – 301 Terrace
Point Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
certificate has been received from John Spruit for the new construction of a
home at 301 Terrace Point. The estimated cost for construction is $414,636. The
applicant has met local and state requirements for the issuance of the NEZ
certificate.
FINANCIAL IMPACT: Taxation will be applied as one-half of the previous
years state average principal residence millage rate to the value of the facility.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the NEZ Certificate.
F. Zoning Ordinance Amendment – Critical Dunes Planning & Economic
Development
SUMMARY OF REQUEST: Staff initiated request to amend section 2310 of the
zoning ordinance to make minor changes to the critical dune ordinance.
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 August 15, 2019 meeting.
H. Certification of MERS Representatives Finance
SUMMARY OF REQUEST: The MERS plan document provides that “the governing
body for each municipality shall certify the names of two (2) delegates to the
Annual Meeting. One delegate shall be a member who is an officer of the
municipality appointed by the governing body of the municipality. The other
delegate shall be a member who is not an office of the municipality, elected by
the member officer/employees of the municipality.”
The City’s employee units previously agreed to a rotating system (based on date
of joining MERS) to select one official employee representative. This year the
official employee representative attending the MERS conference will be Steve
Waltz from the Police Command Unit.
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It is recommended that Kenneth Grant (Assistant Finance Director) be
designated as the City’s employer delegate.
FINANCIAL IMPACT: Registration for the MERS conference in Traverse City,
MI is $175 per person. Additionally, mileage, hotel and related costs will be
incurred.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Certification of Kenneth Grant and Steve Waltz to
be the City’s officer and employee delegates at the MERS annual meeting in
Grand Rapids on October 4 and 5, 2019.
I. Transformer Replacement – Harvey Station DPW – Filtration
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with Newkirk
Electric to replace 500 KVA transformer at Harvey Station since they submitted
the lowest responsible bid of $18, 125.
Three bids were submitted for this project.
Newkirk Electric $18,125.00
Wirtz Electric $19,950.00
Windemuller $23,520.00
FINANCIAL IMPACT: $18,125.00
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Newkirk Electric for a cost of $18,125.
J. Relocating Power pole to Harvey Station DPW – Filtration
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with Wirtz
Electric to remove power pole from Filtration Plant and relocate to Harvey
Station since they submitted the lowest responsible bid of $11,450.
Two bids were submitted for this project.
Newkirk Electric $12,430.00
Wirtz Electric $11,450.00
FINANCIAL IMPACT: $11,450.00
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Wirtz Electric for a cost of $11,450.
K. MTU PLC Programming Services DPW – Filtration
SUMMARY OF REQUEST: Authorize staff to enter into a professional services
agreement with MTU PLC Programming Services at Water Filtration Plant with
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Tetra Tech per their proposal for $16,000.
Tetra Tech is being recommended since they were the engineer for the control
systems upgrades project and their familiarity with the filtration plant.
FINANCIAL IMPACT: $16,000.00
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Tetra Tech for a cost of $16,000.
L. Fleet Vehicle Replacement – Chevy Traverse DPW – Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) Chevy Traverse coming from Berger Chevrolet off the Oakland
County Contract, the lowest available price. The price of this vehicle is
$30,396.00 coming from the Equipment Division Budget.
FINANCIAL IMPACT: $30,396.00
BUDGET ACTION REQUIRED: None. Amount is what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase one (1) Chevy
Traverse from Berger Chevrolet.
M. Fleet Vehicle Replacement – Chevy Impala DPW – Equipment
SUMMARY OF REQUEST: The Equipment Division is requesting permission to
purchase one (1) Chevy Impala coming from Berger Chevrolet off the Oakland
County Contract, the lowest available price. The price of this vehicle is
$22,843.00 coming from the Equipment Division Budget.
FINANCIAL IMPACT: $22,843.00
BUDGET ACTION REQUIRED: None. Amount is what was budgeted.
STAFF RECOMMENDATION: Authorize staff to purchase one (1) Chevy Impala
from Berger Chevrolet.
Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to
approve the consent agenda as presented, except items B, D, G, and N.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
2019-67 ITEMS REMOVED FROM CONSENT AGENDA:
B. Cooperation Agreement – Disability Network West Michigan City
Manager
SUMMARY OF REQUEST: City staff is requesting approval of the service proposal
Page 4 of 11
from Disability Network West Michigan. The proposal will allow Disability Network
to assist the city with an accessibility audit, as well as technical assistance during
the design process on various city/community projects.
FINANCIAL IMPACT: $7,500
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the City Manager to accept the
proposal and sign the contract.
Motion by Commissioner Warren, second by Commissioner German, to
authorize the City Manager to accept the proposal and sign the contract.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist.
Nays: None
MOTION PASSES
D. Opportunity Zone Incentive Program Economic Development
SUMMARY OF REQUEST: The City of Muskegon is fortunate to have its entire
downtown corridor within an Opportunity Zone. The Economic Development
Department is recommending additional localized, Commission reviewed
incentives in order to encourage large scale investment in this competitive
market.
FINANCIAL IMPACT: None at this time, all incentives would be paid out 15
years after the eligible Opportunity Zone Investment.
Funds would be allocated and reserved based on new income tax created and
property tax collection increases as a result of opportunity fund investments,
such as new apartment/housing buildings or businesses.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To authorize the incentive package as
presented.
Motion by Commissioner German, second by Commissioner Johnson, to
authorize the City Manager to accept the proposal and sign the contract.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and
Warren
Nays: German
MOTION PASSES
G. Amendment to PILOT – Gencap 1021 Jefferson Limited Dividend Housing
Association, LLC Planning & Economic Development
SUMMARY OF REQUEST: The City Commission approved a Payment in Lieu of
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Taxes (PILOT) for Gencap 1021 Jefferson Limited Dividend Housing Association,
LLC on February 26, 2019. The development will include 73 residential units and
2,300 square feet of commercial space. There will be 55 one-bedroom units and
18 two-bedroom units. Ten units will be at 30% AMI, nine units will be at 40% AMI,
11 units will be low-income disability units, 14 units will be at 60% AMI and 29 units
will be at 80% AMI. A service charge of 4% will be imposed, as well as a
municipal services fee of 2%. As directed by the Michigan State Housing
Development Authority (MSHDA), the developer is requesting a few minor
changes to the agreement that reiterates that the development will be for low
income persons and families, not seniors.
FINANCIAL IMPACT: Although the PILOT for project will be less than the taxes
captured for a similar market-rage project, the situation with this particular
property is that the contribution towards the City will be greater to the City with
the development under a PILOT than it is a vacant lot. In addition, taxes would
apply to the commercial square footage within the building.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the revised “Contract for Housing
Exemption.”
Motion by Commissioner German, second by Commissioner Warren, to approve
the revised “Contract for Housing Exemption”.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
N. Notice of Intent to Bond Resolution for Scattered Housing Development
Finance
SUMMARY OF REQUEST: The Notice of Intent is the first step in the bonding
process. This resolution authorizes the publication of the Notice of Intent to bond
for the purpose of acquisition and construction of residential housing units in the
City for economic development purposes. The total project shall not exceed
$3,000,000.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Resolution of Intent.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the resolution of intent.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Page 6 of 11
Nays: None
MOTION PASSES
2019-68 PUBLIC HEARINGS:
A. Public Hearing - Request to Establish an Obsolete Property District – 1208
8th Street Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Core Development Corp, LLC has requested the establishment of an
Obsolete Property District for their property at 1208 8th Street. The establishment
of the Obsolete Property District would allow them to apply for an Obsolete
Property Rehabilitation Exemption Certificate.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of the creation of
the district.
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Warren, second by Commissioner Johnson, to close
the public hearing and approve creation of the district.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
B. Public Hearing - Request to Issue an Obsolete Property Certificate – Core
Development Corp, LLC Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 146 of the Michigan Public Acts
of 2000, Core Development Corp, LLC has requested the issuance of an
Obsolete Property Certificate for their property located at 1208 8th Street. Total
capital investment for this project is estimated to be $550,000, which qualifies
them for the full 12-year abatement.
FINANCIAL IMPACT: If an Obsolete Property Certificate is issued, the
property taxes would be frozen at the pre-rehabilitated rate for the duration of
the certificate.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the Obsolete
Property Rehabilitation Exemption Certificate.
PUBLIC HEARING COMMENCED: No public comments were received.
Motion by Commissioner Warren, second by Commissioner Johnson, to close
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the public hearing and approve creation of the district.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
PUBLIC HEARING COMMENCED: Michael Haueisen, 903 Turner, stated
support of the project.
Motion by Vice Mayor Hood, second by Commissioner Rinsema-Sybenga, to
close the public hearing and approve issue the Obsolete Property Rehabilitation
Exemption Certificate.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
2019-69 NEW BUSINESS:
A. Designation of Voting Delegates for the Michigan Municipal League
Annual Business Meeting City Clerk
SUMMARY OF REQUEST: To designate by action of the Commission, one of our
officials who will be in attendance at the Convention as an official
representative to cast the vote of the municipality at the Annual Meeting; and,
if possible, to designate one other official to serve as an alternate.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval
Motion by Commissioner Johnson, second by Commissioner German, to
designate Mayor Stephen J. Gawron as delegate, and Vice Mayor Eric Hood as
alternate as official representative to cast the vote of the municipality at the
Annual Meeting.
ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson,
Gawron, and Hood.
Nays: None
MOTION PASSES
B. Request to Create a New Neighborhood Enterprise Zone District at 292 W
Western Avenue Planning & Economic Development
SUMMARY OF REQUEST: Pursuant to Public Act 147 of the Michigan Public Acts
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of 1992, Sweetwater Development, LLC has requested to create a new
Neighborhood Enterprise Zone (NEZ) district for the parcel at 292 W. Western
Avenue. Properties located in this NEZ district will be eligible to apply for NEZ
Certificates, which will lower the residential property taxes on new construction.
Notice letters were sent to the taxing jurisdictions on June 11, 2019 and a public
hearing was held on June 25, 2019. State law requires that the resolution must be
adopted at least 60 days after the notice letters were sent.
FINANCIAL IMPACT: No financial impact at this point. However, being in a
district will allow them to apply for a rehab NEZ certificate, which will lower the
residential property taxes for 1 to 15 years.
BUDGET ACTION REQURIED: None
STAFF RECOMMENDATION: Staff recommends approval of the new NEZ
district.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the new Neighborhood Enterprise Zone District at 292 W. Western.
ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist,
Johnson, and Gawron
Nays: None
MOTION PASSES
C. Approval of a Neighborhood Enterprise Zone Certificate – 292 W. Western
Planning & Economic Development
SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone
Certificate has been received from Sweetwater Development, LLC for the
construction of 18 market-rate apartments as part of a mixed-use development
project. The estimated project cost is $222,975 per unit. The applicant has met
local and state requirements for the issuance of the NEZ certificate. They have
requested the maximum 15 years for the exemption.
FINANCIAL IMPACT: One-half of the previous year’s state average principal
residence millage rate will be applied to the value of the facility for a duration of
15 years, with a three-year phase out (they will receive 75% of the abatement in
year 13, 50% in year 15 and 25% in year 15).
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the NEZ certificate for 15 years.
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to approve the new Neighborhood Enterprise Zone Certificate at 292 W. Western.
ROLL VOTE: Ayes: Rinsema-Sybenga, Turnquist, Johnson, Gawron, hood, Warren,
and German.
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Nays: None
MOTION PASSES
D. Updates to MERS Defined Benefit Plan Adoption Agreements Finance
SUMMARY OF REQUEST: After an audit conducted by MERS of our payroll
system, it was discovered that we need to update our agreements for changes
made per union agreements, compensation included in MERS wages and hours
included in calculating Final Average Compensation that weren’t included in
current agreements.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approve the updates to our MERS Defined
Benefit Agreements.
Motion by Commissioner Rinsema-Sybenga, second by Commissioner Warren,
to approve the updates to our MERS Defined Benefit Agreements.
ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, hood, Warren, German, and
Rinsema-Sybenga
Nays: None
MOTION PASSES
E. Revised City Commission Rules and Procedures Office of the Mayor
SUMMARY OF REQUEST: To adopt revisions to the City Commission Rules and
Procedures discussed at the Legislative Policy Committee meeting held July 31,
2019.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
RECOMMENDATION: To adopt the revised City Commission Rules and
Procedures as discussed.
Motion by Commissioner Johnson, second by Commissioner German, to further
revise the City Commissioner Rules and Procedures by adding that the City Clerk
will provide the Worksession Audio file to all City Commissioners after each
Worksession meeting as well as retain the file for two years, changing L. 5. to
read all purchases over $15,000, removing L. 6., revising L. 9. to be for
agreements extending beyond one year or in excess of $15,000.
ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga,
and Turnquist
Nays: None
MOTION PASSES
Page 10 of 11
Motion by Commissioner Johnson, second by Commissioner Rinsema-Sybenga,
to adopt the revised City Commission Rules and Procedures as discussed at the
Legislative Policy meeting on July 31, 2019 and as revised by the previous
motion.
ROLL VOTE: Ayes: Gawron, Hood, Warren, German, Rinsema-Sybenga,
Turnquist, and Johnson
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Chief Lewis provided an update regarding on-going
matters in the City.
PUBLIC PARTICIPATION: Public Comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 8:12 p.m.
Respectfully Submitted,
Ann Marie Meisch, MMC – City Clerk
Page 11 of 11
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date:09/10/19 Title: MUPD Radar Message Trailer
Submitted By: Jeffrey Lewis, Director Department: Public Safety/MUPD
Brief Summary: Commission authorization for the purchase of a Speed Alert Radar Message Trailer
to provide drivers with speed feedback, messages specific to vehicle speeds, or dedicated messages.
This is a versatile tool for both traffic calming and messaging.
Detailed Summary:
Amount Requested:$15,985.00 Amount Budgeted: $15,000.00
Fund(s) or Account(s):101-40301-5720 Fund(s) or Account(s): 101-40301-5720
Recommended Motion: To approve the purchase of a Speed Alert Radar Message Trailer
from All Traffic Solutions for $15,985.00.
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 10, Title: Increase in General Fund transfer to
2019 LC Walker Arena Fund and Farmers
Market/Kitchen 242 Fund
Submitted By: Finance Director Department: Finance
Brief Summary: The LC Walker Fund and the Farmers Market/Kitchen 242 Fund required a larger
transfer from the General Fund then what was budgeted to prevent a deficit. Increases are needed
of $50,000 and $15,000 for LC Walker Arena Fund and Farmers Market/Kitchen 242 Fund
respectively.
Detailed Summary: Based on the financial results for the fiscal year ended June 30, 2019 the LC
Walker Arena and the Farmers Market/Kitchen 242 Fund required a larger transfer from the
General Fund then what was budgeted for in the 3rd quarter reforecast, to prevent a fund deficit.
The LC Walker Fund needs to be increased from $425,000 to $475,000 and the Farmers
Market/Kitchen 242 needs to be increased for $20,000 to $35,000.
Amount Requested: $510,000 Amount Budgeted: $445,000
Fund(s) or Account(s): Fund 101,252,254 Fund(s) or Account(s): Fund 101,252,254
Recommended Motion: To approve the increase to the General Fund transfers for the LC Walker
Arena to $475,000 and Farmers Market/Kitchen 242 fund to $35,000.
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 10, Title: Updates to MERS Defined Contribution
2019 Plan Adoption Agreements
Submitted By: Finance Director Department: Finance
Brief Summary: MERS of Michigan has requested we update our Defined Contribution Plan
Adoption Agreements to ensure MERS has the correct information regarding what is included and
excluded for MERS wage calculations.
Detailed Summary: After an audit conducted by MERS of our payroll system it was discovered that
MERS needed many updates to our Plan Adoption Agreements for our Defined Contribution
groups. Please see the attached list by division or group of the updates.
Amount Requested: none Amount Budgeted: none
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the updates to the MERS Defined Contribution Plan Adoption
Agreements.
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 10, Title: Update to MERS Defined Benefit Plan
2019 Adoption Agreement - Command
Submitted By: Finance Director Department: Finance
Brief Summary: Per the 2019-2022 Police Command contract, overtime pay is included in
calculating MERS wages beginning January 1, 2019, this change requires an update to our MERS
Plan Agreement.
Detailed Summary: After an audit was conducted by MERS of our payroll system it was discovered
that we need to update many of our Plan Agreements for changes made per union agreements, or
for policy/procedures not communicated to MERS in the past. The current Police Command
contract calls for overtime wages to be included in the MERS wage calculation beginning January
1, 2019. This change requires an update to the Plan Adoption Agreement.
Amount Requested: none Amount Budgeted: none
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the update to the MERS Plan Adoption Agreement for Police
Command to include overtime pay in MERS wage calculation.
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 9/10/19 Title: MDNR Urban Forestry Grant
Submitted By: Leo Evans Department: DPW
Brief Summary: Staff is seeking approval to apply for an Urban Forestry Grant from the Michigan
Department of Natural Resources. If awarded the grant would be used to complete an inventory of
the existing street and park trees within the City of Muskegon, to prepare an urban tree canopy
analysis, and to develop a long-range plan for the management and development of the urban
forest within the City of Muskegon.
Detailed Summary:
Amount Requested: $20,000 Amount Budgeted: $0
Fund(s) or Account(s): Public Improvement Fund(s) or Account(s): N/A
Recommended Motion:
Authorize staff to apply for an MDNR Urban Forestry Grant and commit to providing matching
funds for the grant application of up to $20,000.
For City Clerk Use Only:
Commission Action:
Urban Forestry Consultants in Michigan
The following is a listing of companies and individuals who have indicated to the Michigan Department of
Natural Resources (DNR) that they provide urban forestry consulting services in Michigan. The DNR
presents this list with no intended endorsement of particular consultants, their qualifications, or service
rendered, nor is criticism implied of consultants not listed. Additional consultants are available in Michigan,
but have not contacted the DNR and are, therefore, not listed below. It is your responsibility to research,
contact and select a consultant best suited to meet your needs. If you are a consultant and wish to be listed
here, please contact Kevin Sayers at sayersk@mi.gov or (517) 284.5898.
Key to Consulting Forestry Services Offered:
A. Management Plans: Advises and/or develops long-term community street/park tree management plans.
B. Ordinance / Specification Development: Advises and/or develops municipal tree ordinances and/or
specifications, policies or regulations for public tree work.
C. Inventories: Advises and/or conducts street/park tree inventories according to local needs/goals. Consultant
should be familiar with use of various inventory software programs and geographic info. systems (GIS).
D. Urban Tree Canopy Analysis (UTC): Provides aerial imagery mapping and analysis of urban tree canopy.
E. Planting Design & Selection: Provides landscape design services and species selection advice.
F. Tree Protection on Construction Sites: Assists client in design & implementation of tree protection systems
G. Municipal Program Administration: Provides contracted services for municipal forestry program admin.
H. Training / Education: Provides technical and educational training in arboriculture and urban forestry.
I. Grant Applications: Assists client in developing project proposals and applying for grants and funding
J. Expert Witness: Investigates litigious situations involving trees and can serve as an expert witness for clients
K. Certified Arborist on Staff: Organization employs at least one ISA certified arborist on staff.
L. Landscape Tree Appraisal: Uses Council of Tree & Landscape Appraiser (CTLA) method for tree valuation
M. i-Tree Analysis: Advises and/or conducts various i-Tree (www.itreetools.org) analysis for urban forests.
N. Insurance Claim Support: Services include claim review, forensic analysis, accident reconstruction, etc.
Eastern Upper Peninsula
Western Upper Peninsula (EUP)
(WUP)
Northeast Lower Peninsula
Northwest Lower Peninsula (NELP)
(NWLP)
Southwest Southeast
(SW) (SE)
Company Address Contact Area A B C D E F G H I J K L M N
1464 Hartwig Ave. Karen Auch
Troy, MI 48098 SE
Phone: 248.879.6737
14146 Wagon Wheel Ct. Paul Bairley
NELP,
Chelsea, MI 48118
Phone: 734.255.5148
NWLP,
SW, SE
Email: Cybair@aol.com
Mike’s Tree 263 Park St. Mike Barger,
Surgeons, Inc. Troy, MI 48084 Gary Eichen
Phone: 248.588.0202 SE
Email: mbarger@mikestree.com
Web: www.mikestree.com
Azavea 340 N 12th St. Ste. 402, Deborah
Philadelphia, PA Boyer
Phone: 215.701.7506 ALL
Email: dboyer@azavea.com
Web: azavea.com
Forecon, Inc 1890 East Main St. Lori
Falconer, NY 14782 Brockelbank,
Phone 716.664.5602 John Gifford ALL
E: lbrockelbank@foreconinc.com
Web: www.foreconinc.com
BC Tree 21659 Bedford Dr. Brian Colter
Consulting Northville, MI 48167
Phone: 313.300.3479
SE
Email: Arbor2000@aol.com
Jones Tree 3427 Beechway Blvd. Grant Jones
Consulting, LLC Toledo, OH 43614
Phone: 484.798.2870
E: jonestreeconsulting@gmail.com
SE
W:
facebook.com/JonesTreeConsulting
Davey Resource Grand Rapids and Royal Oak, MI Lee Mueller
Group, Inc. Phone: 248.221.0439
Email: lee.mueller@davey.com
ALL
Web: www.davey.com
Drysdale Forestry 408 Leeson Ave. Paul Drysdale SW,
& Consulting Cadillac, MI 49601 EUP,
Phone: 231.779.2989 WUP,
Email: paul@drysdaleforestry.com NELP,
Web: www.drysdaleforestry.com MWLP
Natural Path 5455 S. Ingleside Ave. # 1E Mark
Urban Forestry Chicago, IL 60615 Duntemann
Consultants Phone: 773.699.7284 ALL
Email: natpath@earthlink.net
Web: www.naturalpathforestry.com
Arbor 2146 Dean Lake Rd. NE Vic Foerster
Consultants Grand Rapids, MI 49505
Phone: 616.364.4558
ALL
E: vfoerster@grandarborgroup.com
Company Address Contact Area A B C D E F G H I J K L M N
E. Planting Design and Selection J. Expert Witness
A. Management Plans
F. Tree Protection on Construction Sites K. Certified Arborist on Staff
B. Ordinance / Specification Development
G. Municipal Program Administration L. Landscape Tree Appraisal
C. Inventories
H. Training / Education M. i-Tree Analysis
D. Urban Tree Canopy Analysis (UTC)
I. Grant Applications N. Insurance Claim Support
Last updated: 08/08/19 -2-
Company Address Contact Area A B C D E F G H I J K L M N
SavATree 5330 Port Royal Rd. Suite A Michael
Springfield, VA 22151 Galvin
Phone: 571.282.2500 ALL
Email: mgalvin@savatree.com
Web: http://www.savatree.com/
Graham Forestry 6729 Trotwood Michael
Services, Inc. Portage, MI 49024 Graham
Phone: 269.207.4176 SW
Email: mgrahamforester@aol.com
Web: www.grahamforestry.com
Plan-It Geo, LLC. 5690 Webster St. Ian Hanou
Arvada, CO 80002
Phone: 720.988.2048 ALL
Email: ianhanou@planitgeo.com
Web: www.plantigeo.com
Rootwell 3246 Gateway Ledge Scott Harris
Commerce Twp., MI 48390
Phone: 248.227.5705 ALL
Email: scottharris@rootwell.com
Web: www.rootwell.com
Unique Trees and 14081 Warner Ct. Melinda
NWLP,
Shrubs Livonia, MI 48154 Jones
Phone: 734.718.2702
NELP,
SW, SE
Email: joneswinktree@cs.com
Forestry 215 West Ave. D Bernard
Solutions LLC Newberry, MI 49868 Hubbard
ALL
Phone: 906.293.5627
Email: forestmeister@sbcglobal.net
4696 Huron Hills Dr. Jim Kielbaso
Okemos, MI 48864 ALL
Phone: 517.355.7533
Email: kielbas3@msu.edu
Lawrence 8300 W. Waters Rd. William C.
Arborcare, LLC. Ann Arbor, MI 48103 Lawrence
734.913.8050 ALL
Email: lawrencetrees@aol.com
Web: www.lawrencearborcare.com
Bartlett Tree 900 Kenosha Industrial Dr. SE Brian
Expert Co. Grand Rapids, MI 49508 McKenzie
NWLP,
Phone: 616.245.9449
SW
Email: bmckenzie@bartlett.com
Web: www.bartlett.com
Global 9200 Nana Russell Road Gary Moll
Ecosystem Center Owings, MD 20736
Phone: 202.290.3530 ALL
Email: gmoll@systemecology.org
Web: www.systemecology.com
Knowles 1293 Gale Dr.
Municipal Kent, OH, 44240
Jason
Forestry, LLC. Phone: 330. 554.3387
Knowles
SW, SE
Email jason@knowlesforestry.com
Web: http://knowlesforestry.com/
Company Address Contact Area A B C D E F G H I J K L M N
E. Planting Design and Selection J. Expert Witness
A. Management Plans
F. Tree Protection on Construction Sites K. Certified Arborist on Staff
B. Ordinance / Specification Development
G. Municipal Program Administration L. Landscape Tree Appraisal
C. Inventories
H. Training / Education M. i-Tree Analysis
D. Urban Tree Canopy Analysis (UTC)
I. Grant Applications N. Insurance Claim Support
Last updated: 08/08/19 -3-
Company Address Contact Area A B C D E F G H I J K L M N
Eric A. Olson & 1008 Odessa Dr.
Associates Holly, MI 48442 Eric A. Olson,
Phone: 248.634.4320 RLA
SE
Email: EOlsonRLA@sbcglobal.net
Jud Scott 4721 E. 146th St.
Consulting Carmel, IN 46033
Jud
Arborist, LLC Phone: 317.815.8733
Scott
ALL
Email: treeconsultant@aol.com
http://www.arboristexpert.com
Schillinger 5138 Hidden Glen Drive NELP
Forestry, LLC Traverse City, MI Daniel NWLP
Phone: 231.633.8733 Schillinger SE
E: schillingerforestry@gmail.com SW
Wachtel Tree PO Box 716
Service, Inc. Merton, WI 53056 Nathan
Phone: 262.538.1900 Schuettpelz, ALL
Email: nates@wachteltree.com John Gall
Web: www.healthytrees.com/
Steigerwaldt 856 North 4th St.
Land Services, Tomahawk WI, 54487 Lee, Edward
EUP,
Inc. Phone: 715.453.3274 Steigerwaldt
WUP
Email: lees@slstomahawk.com
Web: www.slstomahawk.com/
Owen Tree 225 N. Lake George Rd
Service Attica, MI 48412
Kay
Phone: 734-845-0636 cell
Sicheneder
SE
Email: kays@owentree.com
Web: http://www.owentree.com
Site Specific, Inc. 3650 Brighton
Howell, MI 48843 Julie
Phone: 810.599.0343 Stachecki
ALL
Email: stachec1@me.com
Bluestem 49910 South Loop Rd.
Forestry Drummond, WI 54832 EUP,
Consulting, Inc. Phone: 715.739.6831 Kelli Tuttle WUP
E: bluestemforest@cheqnet.net
Webber 8172 Hemple Rd.
Landscaping Dayton, OH 45417
Mark and
Company Phone: 937.835.3381
Kim Webber
ALL
E: mwebber@webberlandscaping.com
Web: www.webberlandscaping.com
Denny Worst 3409 Scenic Dr.
Consulting North Muskegon, MI 49036 NWLP,
Forestry Phone: 231.766.2711 Dennis Worst SW
Email: kathyworst@gmail.com
The Visiting Lansing, MI
Arborist Phone: 517.980.3532
E: thevisitingarborist@gmail.com
Paul Dykema ALL
Web: www.thevisitingarborist.com
Graf Tree Care Batavia, IL 60510
PhoneL630.762.2400
E: steve@graftreecare.com
Steve Lane ALL
Web: www.graftreecare.com
Company Address Contact Area A B C D E F G H I J K L M N
E. Planting Design and Selection J. Expert Witness
A. Management Plans
F. Tree Protection on Construction Sites K. Certified Arborist on Staff
B. Ordinance / Specification Development
G. Municipal Program Administration L. Landscape Tree Appraisal
C. Inventories
H. Training / Education M. i-Tree Analysis
D. Urban Tree Canopy Analysis (UTC)
I. Grant Applications N. Insurance Claim Support
Last updated: 08/08/19 -4-
Company Address Contact Area A B C D E F G H I J K L M N
832 S. Main St.
Ann Arbor, MI 48104
Willoughby Mark
Consulting
Phone: 734.545.6459
Willoughby
ALL
Email: mark.willoughby@verizon.net
Web: www.willoughbyconsulting.net
4315 N. Kenmore Ave. #3S
Planned
Chicago, IL 60613
Forest Andrew
Solutions,
Phone: 773.243.7442
Lueck
ALL
Email: andrew@plannedforest.com
LLC
Web: www.plannedforest.com
Royal Oak, MI
Phone: 248.980.1637 Jeremiah
Tree First
Email: info@treefirst.org Sandler
SE
Web: www.treefirst.org
Company Address Contact Area A B C D E F G H I J K L M N
E. Planting Design and Selection J. Expert Witness
A. Management Plans
F. Tree Protection on Construction Sites K. Certified Arborist on Staff
B. Ordinance / Specification Development
G. Municipal Program Administration L. Landscape Tree Appraisal
C. Inventories
H. Training / Education M. i-Tree Analysis
D. Urban Tree Canopy Analysis (UTC)
I. Grant Applications N. Insurance Claim Support
Last updated: 08/08/19 -5-
Michigan Department of Natural Resources, Urban and Community
Forestry Grant Program
Fiscal Year 20
Application and
Information
Packet
Submit by September 20, 2019
DNR Forest Resources Division – Michigan.gov/UCF
PR4107, Rev.07/23/2019
Contents
GENERAL INFORMATION .............................................................................................................................. 1
FY 20 COMMUNITY FORESTRY GRANT FUNDING PRIORITIES: ..................................................................... 2
ELIGIBILITY INFORMATION:........................................................................................................................... 2
ELIGIBLE APPLICANTS:............................................................................................................................... 2
SUSPENDED AND DEBARRED PARTIES: ..................................................................................................... 3
LIMIT ON NUMBER OF PROPOSALS: ......................................................................................................... 3
ELIGIBLE ACTIVITIES: ................................................................................................................................. 3
Management, Planning & Innovation ................................................................................................... 3
Education & Training............................................................................................................................. 3
Arbor Day Celebrations ......................................................................................................................... 4
HOW TO APPLY ............................................................................................................................................. 4
Narrative Information: .............................................................................................................................. 4
Budget Information:.................................................................................................................................. 4
REVIEW AND SELECTION PROCESS ............................................................................................................... 6
Criteria: ..................................................................................................................................................... 6
GRANT AWARD AND EXECUTION ................................................................................................................. 6
APPLICATION ................................................................................................................................................. 8
APPLICATION QUESTIONNAIRE ..................................................................................................................... 9
BUDGET INFORMATION .............................................................................................................................. 10
APPLICATION CHECKLIST............................................................................................................................. 11
GENERAL INFORMATION
The Michigan Department of Natural Resources (DNR), Urban and Community Forestry (UCF) Program in
cooperation with the U.S. Department of Agriculture Forest Service (USFS) has established the
Community Forestry Grants program. Federal funding is provided by the USFS, State and Private
Forestry, UCF Program (CFDA 10.664).
Cost-share funds will be available to communities and organizations on a competitive basis for UCF
projects in Michigan. A total of up to $100,000 may be granted to eligible projects. This is a 1:1 cost-
share match program. Federal funds may not be used as part of the required match. Projects must be
completed by September 1, 2020.
The purposes and objectives of this program include:
• providing financial assistance to communities and organizations to support UCF projects,
1
• building local community capacity to manage and care for trees through education, training
and technical assistance,
• developing long-term street/park and community forestry plans and policies,
• promoting projects that assist communities in developing sustainable local tree
management programs,
• improving public awareness and understanding of the benefits of preserving and expanding
community tree cover,
• promoting volunteerism and partnership between public, private and nonprofit
organizations for public tree care,
• supporting innovative projects and partnerships that address UCF issues in Michigan,
• enhancing the technical skills of people involved in planning, managing or maintaining urban
and community forests and,
• Promoting and celebrating Arbor Day, Tree City/Campus/Line USA and related events.
FY 20 COMMUNITY FORESTRY GRANT FUNDING PRIORITIES
Based on the total pool of applications received, up to $100,000 in available funding may be distributed
according to the following breakdown:
Management, Planning and Innovation projects - 65%
Education and Training projects - 30%
Arbor Day Celebration projects - 5%
This is a reimbursement grant program. Federal grant monies awarded under this program will be paid
only upon evidence of completion of approved projects and required 1:1 match.
For additional information, visit the DNR’s UCF web page at Michigan.gov/ucf, or contact Program
Coordinator Kevin Sayers at SayersK@Michigan.gov, 517-284-5898.
ELIGIBILITY INFORMATION
NOTE - Priority consideration will be given to first-time applicants and to those who have not received
any DNR-administered UCF program grants in the last year.
ELIGIBLE APPLICANTS:
Applications will be accepted from the following:
• local units of government (e.g. city, village, township, county, and other legal entities of
local government)
• educational institutions (school district, public university)
• tribal governments
• non-profit organizations* ([501(c)(3)] or other granted legal status)
• Individuals, private businesses, and for-profit institutions are not eligible to apply but may
partner with an eligible organization on a proposal.
*Non-profit Information: Non-profit organizations submitting applications must also:
1. Provide a copy of the IRS letter of determination indicating non-profit status.
2
2. Provide documented permission from the landowning authority (e.g. city forester, city
manager etc.) where the project will be performed, if it is not your own. Lands owned by
non-profit organizations and tribal lands are eligible for use, but applicants must submit a
letter from the organization or tribe ensuring that the lands are open to the public for
educational purposes.
SUSPENDED AND DEBARRED PARTIES:
*Sec. 3016.35 Subawards to debarred and suspended parties. Grantees and subgrantees must not make
any award or permit any award (subgrant or contract) as any tier to any party which is debarred or
suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs
under Executive Order 12549, “Debarment and Suspension.” See list of debarred parties for details.
LIMIT ON NUMBER OF PROPOSALS:
One application per category, per organization.
ELIGIBLE ACTIVITIES:
Several activities will be eligible for funding under the following categories:
1. Management, Planning and Innovation
2. Education and Training
3. Arbor Day Celebrations
Maintenance projects such as tree trimming, removal, etc are not eligible.
Management, Planning & Innovation
Includes activities such as:
• street and park tree inventories
• community forestry management plans
• urban tree canopy (UTC) assessments
• tree ordinance development/revision
• tree protection plans
• street/landscape/arboretum designs and plans
• urban wood utilization initiatives (not equipment)
• purchase of tree inventory software (one time only)
• temporary staffing support (labor/admin, students/interns – 1yr max)
Maximum grant request: $20,000.00
Education & Training
Includes activities/items such as:
• develop/host urban forestry related workshops
• purchase of educational and training materials/resources/supplies including books, videos,
brochures, and hand tools etc., focused on tree care, environment or natural resource issues
• registration expenses for worker training events
• initial costs (e.g. study guide, test fee etc.) associated with staff certification by the
International Society of Arboriculture (e.g. certified arborist)
3
• develop/host youth education programs/events
• develop/purchase tree ID tags, interpretive trail signage, etc.
Maximum grant request: $10,000.00
NOTE - Educational products developed may be locally focused but will ideally have statewide or
regional applicability and include a mechanism for information distribution.
Arbor Day Celebrations
Includes activities such as:
• Arbor Day tree planting (typically one tree)
• Arbor Day/Tree City celebration supplies (brochures, pencils, stickers, awards etc.).
• School library books/materials related to trees, forestry, environmental or natural resource
issues. All materials must be approved by the grant supervisor.
Maximum grant request: $500.00
HOW TO APPLY
1. E-mail the application packet as a PDF attachment to Urban and Community Forestry
Program Coordinator Kevin Sayers at SayersK@Michigan.gov by the date listed on the
packet cover. Late applications or those submitted in the wrong format will not be accepted.
Additional items such as letters of recommendation may be included in the same message
as part of the package or as labeled attachments (Ex: Organization, Item); or:
2. Submit one (1) original and one (1) copy of the application via mail by the date listed on the
packet cover. Late and/or faxed applications will not be accepted. Application materials are
available on the DNR’s website or may be sent via mail upon request. Mail to:
Michigan Department of Natural Resources
Urban and Community Forestry Program
PO Box 30452
Lansing, MI 48909-7952
Applications should contain detailed information for the review committee to consider when rating your
proposal. Items to include (as applicable):
1. Project Narrative
2. Budget
3. Attachments (e.g. site map, IRS determination, etc.)
Narrative Information:
Include statement of project purpose/need, goals, deliverables, anticipated results, and people
involved/responsible with project as listed on the Urban & Community Forestry Grant Application.
Budget Information:
Applications must include the total estimated project cost, grant funds requested (no more than 50% of
the total project costs), and the amount and type of matching funds (cash, in-kind contributions).
4
Federal monies may not be used as matching funds. In-kind contributions such as in-house or volunteer
labor costs, equipment usage, donation of goods, services, etc. should be identified.
Volunteer labor should be valued as follows: Adults - $20/hr.; Youths (up to age 16) - $10/hr.
Professional or technical services contributed by persons, or businesses may be valued at commercial/
professional rates that are reasonable and customary but must be documented in writing by the donor.
Applicants that have an approved overhead/indirect rate from a cognizant federal agency may include
indirect costs as part of their match portion. Proof of certification will be required. This amount will be
limited to 20% of the grant funds requested.
All matching funds must be directly related to the proposed project and have been incurred within the
grant period. Some acceptable sources of match include:
• salaries/wages and fringes
• contractor / consulting fees
• equipment (purchase, rental or donated, in-kind, etc.)
• supplies (i.e., trees, tools, books, brochures, etc.)
• travel (current federal rate of $.58/mile)
• delivery costs
The project budget breakdown should include information in a similar format to the example below:
Project Title: Community Street Tree Inventory
Total Project Cost: $41,500
Requested Grant Funds: $20,000
Anticipated Matching Funds: $21,500
Grant Funds Local Match
Personnel/fringes $ 3,000
Contracted $20,000 $11,000
Supplies $ 7,500
Other
Total $20,000 $21,500
Budget Detail:
Personnel: 150 hours @$20/hr.
Contracted: consultant fees for inventory
Supplies: 3 computers, software and misc. other
5
Applicant must provide a final project report summarizing the project and outcomes an any additional
data, plans, or literature developed through the grant. Project records must be available for audits for
up to 3 years and site reviews for up to 5 years. Applicants must comply with all applicable state and
federal requirements and regulations.
REVIEW AND SELECTION PROCESS
The application process is competitive. Proposals submitted for consideration will be reviewed by the
DNR UCF Coordinator and others including Forest Resources Division staff and/or members of the
Michigan Urban and Community Forestry Advisory Council.
Proposals will be reviewed and rated to formulate a recommendation of award or no award. Awarded
proposals may be funded at the requested amount or less at the recommendation of the committee.
Final awards will be made by the DNR UCF Coordinator in consideration of all applicant review ratings
and recommendations.
Criteria:
Applications will be evaluated based on following:
• completeness of application
• project/program goals and appropriateness
• project quality and technical merit
• budget accuracy
• other factors including past grant performance
Project/program goals include responsiveness to stated Community Forestry Grant Program Objectives.
Project quality includes completeness of application, well-defined project outcomes, short/long-term
impacts, cost effectiveness, and proposed plan for continuation or maintenance of project beyond the
grant period.
Budget accuracy will consider eligibility of requested funds (based on project category), adequate match
and source.
In addition, several items related to statewide program administration may be considered including:
• likelihood that the proposed project will yield products/results that could benefit the
broader Michigan UCF community
• likelihood that the proposed project will result in a community/organization/utility achieving
or maintaining designation as a Tree City/Campus/Line USA
• geographic location in Michigan
• length of time since last grant award (if any)
• applicant past performance on grants
The DNR reserves the right to refine or alter these criteria at any time.
GRANT AWARD AND EXECUTION
Grants will be awarded to the highest rated proposals, as determined by the review committee and the
grant supervisor, based on application comparisons and other program administration considerations
6
listed above. Following the rating, each applicant will be notified of their status (award and allocation,
or no award.)
Every effort is made to review and notify applicants as soon as possible. However, official notifications
typically are not made for up to 2 months after the application closing date.
Grant recipients will receive grant documents for processing following the initial notification. In
addition, grant recipients may be required to meet with DNR UCF program staff prior to beginning the
grant to review and discuss project plans and activities.
Approved projects may begin only after all appropriate forms are signed and submitted by the grantee
and countersigned by the DNR Grant Supervisor. Grant monies awarded will be paid ONLY upon
evidence of completion of project. Project must be completed by September 1, 2020.
Recipients must comply with all applicable state and federal regulations and requirements.
This publication is available in alternative formats upon request.
Projects receiving funds must acknowledge the support of the DNR, Urban and Community Forestry
Program, and the USDA Forest Service, State and Private Forestry Program.
The DNR, FRD reserves the right to withhold award of available grant monies.
The Michigan Department of Natural Resources (DNR) provides equal opportunities for employment and
access to Michigan's natural resources. Both state and federal laws prohibit discrimination on the basis
of race, color, national origin, religion, disability, age, sex, height, weight or marital status under the U.S.
Civil Rights Acts of 1964 as amended, 1976 MI PA 453, 1976 MI PA 220, Title V of the Rehabilitation Act of
1973 as amended, and the 1990 Americans with Disabilities Act, as amended.
If you believe that you have been discriminated against in any program, activity, or facility, or if you desire
additional information, please write: Human Resources, Michigan Department of Natural Resources, PO
Box 30028, Lansing MI 48909-7528, or Michigan Department of Civil Rights, Cadillac Place, 3054 West
Grand Blvd, Suite 3-600, Detroit, MI 48202, or Division of Federal Assistance, U.S. Fish and Wildlife Service,
4401 North Fairfax Drive, Mail Stop MBSP-4020, Arlington, VA 22203
For information or assistance on this publication, contact Forest Resources Division, Michigan Department
of Natural Resources, PO Box 30452, Lansing MI 48909-7952, Telephone 517-284-5900.
7
APPLICATION
Michigan Department of Natural Resources, Forest Resources Division
URBAN AND COMMUNITY FORESTRY PROGRAM
FY20 URBAN AND COMMUNITY FORESTRY GRANT
This information is required by Authority of Part 5, 1994 PA451, as amended, and the
U. S. Cooperative Forestry Assistance Act of 1978, CFDA 10.664, in order to be considered for a grant.
Organization Name (Community or Organization) Contact Person (Person responsible for all project correspondence)
Address Email
City, State, Zip County
Telephone Federal Employer Identification Number (FEIN):
(This 9 Digit Number Must be Provided)
( )
TO BETTER HELP US DETERMINE EACH APPLICANT’S CAPACITY AND/OR LEVEL OF ASSISTANCE NEEDED TO DELIVER URBAN FORESTRY
PROJECTS, PLEASE INDICATE WHICH OF THE FOLLOWING URBAN & COMMUNITY FORESTRY PROGRAM COMPONENTS YOUR COMMUNITY
CURRENTLY HAS IN PLACE. (check all that apply)
Not Applicable (e.g. non-profit organization, educational institution, tribe, etc.)
Current Street/Park Community Forest Management Plan (Provide copy of plan, or website link)
Current Street/Park Tree Inventory or community-wide tree canopy assessment (Provide a summary or website link)
Tree/Landscaping Ordinance (Provide copy or provide website link)
Tree Board or Responsible Department (Provide Chair or primary contact person information)
Current Tree City/Campus USA certification (view list at: https://www.arborday.org/programs/treecityusa/directory.cfm )
Professional Staffing (Should be relevant to urban forestry, natural resources mgmt. or planning. May include consultants)
TITLE:
_____________________________________________________________________
PROJECT BUDGET SUMMARY Estimated project starting date:
GRANT AMOUNT REQUESTED
(no more than 50% of total project cost) $
Estimated projection completion date:
MATCH AMOUNT (must be completed by 9/1/2020)
(at least 50% of the total project cost) $
TOTAL PROJECT COST $
PROJECT TYPE (Check ONLY one project type) TYPE OF APPLICANT (Check one)
Local Unit of Government
Management, Planning & Innovation ($20,000 or less)
Non-Profit organization (must be designated as 501c3)
Education & Training ($10,000 or less)
Educational Institution
Arbor Day Celebrations ($500 or less)
Tribe
Other (specify)
8
APPLICATION QUESTIONNAIRE
A. Describe the purpose and objectives of the project you are proposing (i.e. why are you undertaking
this project, what is the need?)
B. Describe specific project outcomes and deliverables anticipated (i.e. what will be the major
accomplishment(s) from this project?)
C. Describe your strategy/timeline for completing the project. Be sure to include specific steps and
preplanning info (e.g. preliminary designs, quotes, estimates, etc.)
D. Please list the names and responsibilities of key individuals and organizations involved with the
project.
E. Upon completion of your project, what plans do you have (if any) to continue, maintain, update or
assess it?
9
BUDGET INFORMATION
A budget chart must be included (see example). Budget detail must specify total project costs, grant
amount requested and matching funds. Grant amount request may be no more than 50% of the total
project costs. Budgets must identify matching funds (cash, value of in-kind contributions etc.).
Matching funds may not be federal and must be directly related to proposed project.
In-kind contributions include in-house or volunteer labor costs, goods and services. Volunteer labor
should be valued as: Adults at $20/hr., Youths up to age 16 at $10/hr. Professional or technical services
contributed by consultants, businesses or companies should be considered in-kind match valued at
commercial/professional rates that are reasonable and customary and must be documented in writing
by the donor.
Some acceptable sources of match may include:
• Labor (in-house, volunteer, contract) • Donations
• Facility rental fees • Supplies (i.e., books, brochures, tools,
• Program administration (up to 20% of mulch, food, etc.)
requested grant funds) • Tree Maintenance (1st yr. estimated
• Travel / Delivery costs costs only)
• Equipment (rented, in-house,
purchased)
Expenses Requested Grant Funds Match Budget Detail
Personnel/Fringe $ $
Overhead $ $
Volunteer $
Travel $ $
Equipment $ $
Supplies $ $
Contractual Services $ $
Other $ $
TOTAL $ $
Do you have written permission from the landowner (if applicable)?
Yes, provide copy No, (a copy is required prior to beginning)
*Non-Profit Organizations: Have you attached a copy of IRS determination indicating non-profit status? Yes No
Are you currently debarred or suspended from participation in Federal Assistance Programs? (See page 2) Yes No
As designated representative of above-named Applicant, I hereby agree to implement this project according to the
application and to abide by the provisions of the Community Forestry Grant Program, including compliance with all
applicable federal and state laws and regulations.
Applicant’s Designated Representative (please print) Signature Date
10
APPLICATION CHECKLIST
Use the following checklist to ensure that your grant application is complete.
If sending by mail, have you included a total of two (2) copies of the application (one original,
one copy)?
If sending by e-mail, is your application in the correct format? Are your attachments labeled
with titles and your organization’s name?
Did you provide the required contact information (including FIN#) and answer all questions on
the application?
Did you include copies of any quotes or bids you received for the project? (as applicable)
Have you verified budget figures and correctly calculated the required matching funds?
Did you provide copies of any Urban Forestry Program components? (as applicable)
Have you obtained written approval from landowners? (as applicable)
Have you obtained all necessary required signatures?
Are there any letters of support that you would like to include? (not required)
Have you attached a copy of your IRS Letter of Determination? (nonprofit organizations only)
11
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 9/10/19 Title: P&N Lakeshore Drive Amendment #1
Submitted By: Leo Evans Department: DPW
Brief Summary: A number of items were added to the Lakeshore Drive Project that were not
included in the original scope of work, including replacement of two water mains and additions to
streetscaping, causing an increase in engineering services.
Detailed Summary:
During design of the project at the request of the City a number of items were added to the project
that were not included in the original scope of work. The largest of these items was the addition of
replacement of the two existing 100+ year old water mains. A number of other additions to the
streetscape work were added relative to the project. The 18-19 budget included $200K in the
water fund budget to cover these additional costs. The unused portion of the 18-19 budget will be
carried forward to the 19-20 budget in a future reforecast. The major street fund budget between
the 18-19 and 19-20 fiscal years budgeted to cover the other increases relative to the changes in
the streetscape. The overall Engineering Services charge for this $6.1M project stands at 11%
with inclusion of this amendment which is a lower overall rate than other comparable projects.
Amount Requested: $279,000 Amount Budgeted: $279,000
Fund(s) or Account(s): Water ($200K) & Major Fund(s) or Account(s): Water ($200K) & Major
Streets ($79K) Streets ($79K)
Recommended Motion:
Authorize staff to sign Amendment #1 to the Professional Services Agreement with Prein &
Newhof for the Lakeshore Drive project in the amount $279,000.
For City Clerk Use Only:
Commission Action:
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 9/10/19 Title: Pavement Warranty Resolutions
Submitted By: Leo Evans Department: DPW
Brief Summary:
Resolutions to adopt and implement pavement warranty guidelines are a requirement of MCL
247.663. The proposed resolutions are as recommended for adoption by MDOT and the Michigan
Municipal League. Adoption of the guidelines is required prior to September 18th, 2019.
Detailed Summary:
Amount Requested: $0 Amount Budgeted: $0
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion:
Authorize the Mayor and Clerk to sign the resolutions to adopt and implement the pavement
warranty guidelines as required by law.
For City Clerk Use Only:
Commission Action:
GUIDELINES FOR
LOCAL AGENCY PAVEMENT
WARRANTY PROGRAM
By
CRA Engineering Committee
Local Agency Pavement Warranty Task Force
Revised 8-13-2018
1
TABLE OF CONTENTS
Topic Page
Cover 1
Table of Contents 2
Preface - Intent of the Local Agency Warranty Program 3
Pavement Warranty Reporting and General Warranty Project Selection 4
Warranty Contract Process 5
General Guidelines of Local Road Agency Warranties 6
Warranty Documents 7
Warranty Process 7
Rights and Responsibilities of the Local Agency 8
Rights and Responsibilities of the Contractor 8
Supplemental Lien Bonds and Liability Insurance 9
Warranty Inspections 9
Correction of Defects 9
Emergency Repairs 10
Appendix A – Flow Charts 11
Warranty Determination Process 12
Warranty Process 13
Warranty Inspection Subprocess 14
Resolve Subprocess 15
Appendix B – Inspection Guidelines 16
HMA New Construction/Reconstruction 17
HMA Construction over Aggregate Base without
Base or Drainage Improvement 20
HMA Overlay 23
New/Reconstructed Jointed Plain Concrete Pavement 26
Appendix C – Inspection Forms (under development) 29
HMA Inspection Form 30
Concrete Inspection Form 31
Appendix D – Model Pavement Warranty Contract and Bond Forms
(under development) 32
Local Agency Pass-Through Warranty Bonds 33
Local Agency Pavement Warranty Bond Form 34
Local Agency Pavement Warranty Contract 35
Appendix E – Reporting Forms (under development) 36
Pavement Warranty Reporting 36
Appendix F – Education and Training (under development) 37
Education of Local Road Agencies on
Local Pavement Warranty Program 37
2
PREFACE- Intent of the Local Agency Warranty Program
The Legislature (P.A. 175 of 2015) requires each local road agency to adopt a Local Pavement
Warranty Program acceptable to the Michigan Department of Transportation. Warranties have
the potential to improve the quality of road projects, benefitting the drivers, taxpayers and road
agencies of Michigan
The intent of the Local Agency Pavement Warranty Program is to provide a warranty program
that all local agencies can use for all hot mix asphalt and plain jointed concrete paving projects
on public roads and streets. This pavement warranty program was created by the Local Agency
Pavement Warranty Task Force, to establish a common pavement warranty program for all local
agencies in Michigan. The goals of this Local Agency Pavement Warranty program is to
standardize the review, to provide oversight of pavement warranty projects, and to make this
program more transparent and uniform for private sector contractors.
This Local Agency Pavement Warranty Program is available for all local road agencies if they
choose to use it. Local road agencies vary dramatically in size and sophistication; therefore the
Local Road Warranty Task Force developed a warranty program to address the capabilities of
the rural, the mid-sized urban and the large urban agencies. This approach provides a warranty
program that meets the intent of Public Act 175 of 2015 (MCL 247.662 and 247.663), and
provides all local road agencies with a pavement warranty program that provides value to the
public.
The Local Road Warranty Task Force recognizes there may be substantial benefits and public
confidence resulting from a comprehensive pavement warranty program. However, the existing
pavement structure, drainage and planned improvements for each project will need to be
evaluated on an individual basis to critically assess a justification or basis for a pavement
warranty. Road agencies should anticipate increased project costs related to higher bid prices
and costs for the warranty administration such as: pavement monitoring, defect documentation,
official notifications, joint field inspections; defect remediation and dispute resolution.
The intent of this GUIDELINES FOR LOCAL AGENCY PAVEMENT WARRANTY PROGRAM,
is to provide an overview and guidance on implementing a pavement warranty project. This
guideline is intended for local agency use and it not intended to be a contract document.
3
GUIDELINES FOR LOCAL AGENCY PAVEMENT WARRANTY PROGRAM
Pavement Warranty Reporting and General Warranty Project Selection
Acceding to PA 175 of 2015, all local road agencies must submit an annual report to the state
for all projects where the pavement-related bid items exceeded $ 2 million, regardless of
whether or not the agency included a pavement warranty on the project. Each local road
agency must submit and maintain its records to comply with the reporting requirements included
in Appendix E.
The Task Force determined that the Legislature’s intent for local pavement warranties is to
provide assurances to elected officials and taxpayers in the use of the new funds arriving for
road and bridge infrastructure. Assurances which include that local road projects would be held
to a higher standard in the future.
At the same time, there are logical explanations why a local road agency may choose to not
require a warranty such as unjustifiably higher costs for a warrantied project that may or may
not be affordable to the community and may or may not be justified by the scope of the project;
recognition of a limit to the contractor’s ability to bond for every project; some projects are
simple preservation or resurfacing over an existing imperfect road base wherein the contractor
cannot control such pre-existing conditions; and many other engineering factors that indicate a
pavement warranty would not serve the taxpayer’s best interests. Whether or not a warranty is
selected on a project with $2 million in pavement related items, this must be reported to the
Legislature on an annual, state fiscal year basis.
The Legislature had the wisdom to specify that warranties would be left to the discretion and
justification of the local road agency and its road engineering expertise. Agencies can waive a
pavement warranty with a written justification. The agency’s written justification identifies
reasons such as project appropriateness, scope and type of project improvements, why this is in
the best interest of the local agency, project cost justification, and effectiveness of the warranty
provisions. It is highly recommended for all local road agencies with paving projects where the
engineer’s opinion of cost exceeds $ 1.8 million in pavement related items that serious
consideration should be given to include the pavement warranty special provisions in the project
proposal prior to advertisement.
The Task Force does not believe the Legislature intended every local new construction,
reconstruction, rehabilitation, and overlay road project to be warranted, and thus included the $2
million threshold. Because pavement is the road component most likely to fail – and the area
most aggravating to the motoring public – the Task Force believed the Local Pavement
Warranty Program was intended to focus on pavement-related items. The Task Force has
relied on customary and basic engineering principles in defining pavement-related items that are
recommended for consideration of a warranty. As a result of the Local Agency Warranty Task
Force believes the Michigan Legislature intended a local road agency to use its best judgment
in requiring a warranty, consistent with the scope of the intended project and the ability to
enforce it.
This Local Agency Pavement Warranty Program considers the vast array of project types and
sizes. Local road agency projects often involve short stretches of pavement resurfacing to
address a surface condition or safety concern. These types of projects are accomplished with
very limited budgets, often with funding from non-MTF sources. In addition, often these types of
projects do not address the subgrade, existing aggregate base or drainage systems; which all
are major factors in determining the longevity of a pavement surface. If the road segment may
4
be subjected to a significant amount of overloads (higher than average daily truck counts and/
or heavier than normal axle loading) during the anticipated warranty term, the road may not be a
good candidate for pavement warranties. Therefore, the Local Agency Pavement Warranty
Program is recommended for road segments designated as “all-season road” which are
designed for year-round normal loading.
While the law indicates where possible a pavement warranty shall be secure when the paving
project exceeds $2 million, the Task Force recognizes project bids are often 10 percent over the
engineer’s opinion of cost, and that a warranty requirement cannot be retroactively applied to a
road project after the bids are opened. Thus, the Task Force has recommended the more
conservative $1.8 million engineer’s opinion of cost for pavement related items, as the point
when the local agency decides if the warranty special provisions are included in the bid
documents, rather than the $2 million stated in the law.
The Task Force believes the Michigan Legislature was speaking in the context of new Michigan
Transportation Funds for roads, which are exclusively state revenue sources, when it included
the Local Agency Pavement Warranty Program alongside the new funding legislation in the
2015 Transportation Package. It also seems clear the Legislature was speaking not just to the
new transportation funds, but also to the other road funds under its control, which includes the
federal funds flowing through MDOT to the local road agencies.
The Local Agency Pavement Warranty Program also recognizes that if the only source of
revenue for a local road agency paving or reconstruction projects is entirely locally derived
revenue (non- Act 51 or Federal Funds) such as local general fund, millage revenue, special
assessment districts or other locally raised revenue; then these projects will not be subject to
the Local Agency Pavement Warranty Program reporting requirements.
It’s important to note that this Local Agency Pavement Warranty Program may also be used by
that local road agency on any paving project regardless if the $2 million dollar threshold for
pavement related items has been reached or not. This approach ensures that Local Pavement
Warranties can be used on any project with any funding source, including Michigan
Transportation Funds, and can utilize the same requirements to provide greater understanding
and transparency to contractors, stakeholders and the public.
Warranty Contract Process
For those construction projects advertised and let through the MDOT Local Agency Programs,
the construction contract is between the prime contractor and MDOT. The prime contractors’
surety company names MDOT as the obligee in the performance bond in the original contract.
For Local Agency Pavement Warranty projects, an additional warranty contract and pavement
warranty bond will be required prior to award, see Appendix D. The bid proposal shall include a
contract consistent with the model contract and bond form shown in Appendix D. These
documents will serve as the contract and warranty bond between the local road agency and the
paving contractor for the warranty work. The warranty bond will be provided by the paving
contractor in the name of the local road agency.
The MDOT Local Agency Agreement will reference the local road agency’s responsibility to
administer the warranty portion of the contract. Upon the acceptance of the construction work,
the prime contractor’s contract and performance bond with MDOT will be released and no
longer in effect. At this point the warranty contract and warranty bond are triggered to begin the
new contract for the warranted work during the warranty term.
5
The local road agency will be solely responsible for administering the warranty contract,
inspection of warranted work during the warranty period, approving remediation work and
seeking resolution through the warranty bond if the contractor is unresponsive in performing
corrective work and declaring acceptance of all warranted / corrective work at the end of the
warranty period.
General Guidelines of Local Road Agency Warranties
These General Guidelines are recommended for all local road agencies administering pavement
warranties for public road and street construction contracts. The responsibility and authority for
administering pavement warranties rest with the road owner and/or the local road agency that
conducted the construction administration phase of the project.
To determine the pavement-related cost for a hot mixed asphalt pavement warranty project, the
Local Agency is required to prepare an opinion of cost for all of the pavement-related items
which include: the pavement, curb, shoulders, aggregate base, subbase and underdrain pay
items. To determine the pavement-related cost for concrete pavements, the local road agency
engineer is required to prepare an opinion of cost for all of the pavement-related items which
include: pavement, curb, shoulders, joint sealing, dowel bars, load transfer devices, aggregate
base, subbase and underdrain. If the total estimated cost of these pavement-related items
exceeds $1.8 million in the opinion of the Engineer, the local road agency should review the
existing pavement variables, stated in the “Pavement Warranty Reporting and General Warranty
Project Selection” section of this document, to determine if the pavement warranty special
provisions should be included in the bid documents.
The contractor is responsible for correcting defects attributable to elements within the
contractor’s control. Each warranty specification includes condition parameters and distress
thresholds to provide a basis for evaluating the warranted work. Each distress parameter
includes threshold limits that, if exceeded during the warranty period, would trigger notifying the
contractor to participate in a joint field investigation. Depending on the outcome of the
investigation the contractor may be required to prepare a remediation plan to correct distresses
that are attributable to its materials and/or workmanship or there may be a call for further
investigation. If the agency and the contractor cannot agree, either side can call for a Conflict
Resolution Team to resolve the dispute as described in the Local Road Agency Special
Provision for Hot Mix Asphalt and Concrete Pavement Warranty.
Once a remediation plan is agreed-to by the local road agency and the contractor, the corrective
action shall be performed. The corrective actions and/or repairs shall be performed to correct
deficiencies in the warranted work in order to achieve acceptance at the end of the warranty
period. If the contractor fails to perform the remediation work within specified timeframes, the
local road agency shall notify the surety company to perform the work. Further, if a defect is
declared as an imminent safety problem by the agency, the local agency may complete the
work and seek reimbursement from the contractor or submit a claim against the warranty bond.
All required corrective action must be performed by the contractor at no cost to the owner. The
condition parameter thresholds and warranty requirements may vary depending on the date the
specification was developed; type of warranty; and the application to the construction work. It is
important, therefore, to refer to the specific warranty special provision in the contract when
administering warranties.
The warranty administration phase should follow the documentation procedures outlined in
Appendix A, B, C, D and E of these guidelines. The warranty administration can be performed
by qualified local agency staff members or under a consultant service contract.
6
Warranty Documents
The Local Agency Pavement Warranty consists of the warranty contract and warranty bond as
well as the appropriate special provisions:
• Local Road Agency Special Provision for Hot Mix Asphalt and Concrete Pavement
Warranty
• Local Road Agency Special Provision for Warranty Work Requirements for Hot Mix
Asphalt Pavement
• Local Road Agency Special Provision for Warranty Work Requirements for Jointed Plain
Concrete Pavement
• Local Road Agency Special Provision for Pavement Warranty Information
The Local Road Agency Special Provision for Hot Mix Asphalt and Concrete Pavement
Warranty establishes the common terms and definitions applied to pavement projects requiring
a warranty. The Local Road Agency Special Provision for Warranty Work Requirements for Hot
Mix Asphalt Pavements warrants the Local Road Agency against specific defects in HMA
pavements. The Local Road Agency Special Provision for Warranty Work Requirements for
Jointed Plain Concrete Pavement warrants the Local Road Agency against specific defects in
concrete pavements. Local Road Agency Special Provision for Pavement Warranty Information
provides the beginning and ending locations for warranted work and the applicable warranty
work requirements special provision.
Under the Local Agency Pavement Warranty special provisions the Prime Contractor is
responsible for correcting defects in the pavement caused by elements within the contractor’s
control (i.e., the materials supplied, the workmanship, etc.), during the warranty period. The
Pavement Warranty Contract Provisions and Warranty Bond may pass through to
subcontractors, and with this the responsibility to correct warranty defects, at the direction of the
Prime Contractor and upon written notice to the agency prior to the start of the work.
The contractor assumes no responsibility for defects that are design related unless the paving
contract is design-build. When a defect is attributable to the materials and/or workmanship
and/or the design, the responsibility for correcting the defect (or defects) will be shared by the
agency and the contractor. The contractor is responsible for the percentage of fault attributable
to the workmanship and/or materials, and the agency is responsible for the percentage of fault
attributable to the design. Note: The agency may elect to require the contractor to provide the
pavement design(s) in the contract documents and specifications. In this case, the Contractor
shall also be responsible for the percentage of fault attributable to the pavement design.
Warranty Process
The process flow charts as shown in Appendix A describe the steps involved in the warranty
administration process. The warranty term begins with the acceptance of the warranted work
during construction of the project. Warranty Administration involves periodic condition
inspections of the mainline pavement areas throughout the warranty term; joint field inspections;
documentation of findings, official notifications; joint determination of defects; initiation of
corrective action, inspection & documentation of the corrective action taken, filing those
inspection reports as necessary, and if necessary a conflict resolution process. If at any time, a
safety issue or significant defect is observed or reported, prior to a scheduled inspection, an
interim inspection will be initiated by the agency. If emergency repairs are determined to be
necessary the agency can perform these repairs without altering the contractor’s responsibilities
under the warranty contract.
7
A joint field review between the local road agency and the warranty contractor may be held to
verify and confirm of findings documented during the various inspections. MDOT should be
included in any official communication dealing with the warranty if the construction project had
MDOT oversight. The findings of the final inspection at the end of the warranty term are
distributed to the owner, (and MDOT if construction had MDOT oversight), the warranty
contractor and the Surety Company.
The appeal process, when needed, involves assembling a conflict resolution team (CRT) to
conduct investigations as needed to determine distress cause & effect and establish
concurrence between the local agency and the warranty contractor regarding warranty
compliance issues. More on the CRT can be found in the section j, Correction of Defects of the
Local Road Agency Special Provision for Hot Mix Asphalt and Concrete Pavement Warranty.
The final step of the process, after the project or warranty work has been deemed acceptable is
closing out the warranty project through notification of the contractor, the bonding company and
Local agency’s Finance and /or Administration Division.
Rights and Responsibilities of the Local Agency
The agency administering the project should inform the appropriate local road agency
maintenance staff about sections of roadway incorporated in a warranty contract. The local road
agency has the right to perform, or have performed, routine and emergency reactive
maintenance during the warranty period. Major planned maintenance projects conducted during
a warranty period need to be evaluated in terms of possible impact to the ongoing warranty
coverage.
If corrective work is required to bring the project back into compliance with the requirements
found in the warranty special provisions; the local agency in charge of the construction project
must approve the schedule, materials and methods of construction repair. If the contractor is
unable to comply with this provision, or fails to comply with it to the local agency’s satisfaction,
the local agency reserves the right to arrange for the work to be completed at the contractor’s
expense. If this action by the local agency is required, it will in no way relieve the contractor
from meeting the warranty requirements stated in the project documents.
The rights and responsibilities are further detailed in Section e, Rights and Responsibilities of
the Agency in the Local Agency Special Provision for Hot Mix Asphalt and Concrete Pavement
Warranty.
Rights and Responsibilities of the Contractor
The contractor must provide a written work plan for any necessary corrective warranty work. A
request for a work permit must be submitted through the local road agency’s permit process and
work should be coordinated with the construction inspection agency if different from the local
agency issuing the permit. All corrective warranty work should be completed within the warranty
term. If scheduling conflicts necessitate corrective work being completed outside of the warranty
term, the local road agency shall be notified as soon as the contractor is aware of the conflict.
The rights and responsibilities of the contractor are further detailed in Section f. Rights and
Responsibilities of the Contractor in the Local Agency Special Provision for Hot Mix asphalt and
Concrete Pavement Warranty.
8
Supplemental Lien Bonds and Liability Insurance
In addition to the warranty bond that is in place, if corrective work is necessary the contractor
must furnish supplemental lien bond to the local agency covering the corrective work. The
Engineer is responsible for estimating the amount of the supplemental lien bond required. The
amount should be approximately equal to the dollar amount of the corrective work. The
contractor must also have liability insurance in place prior to performing corrective work during
the warranty period. The contractor should not be allowed on-site to perform corrective work
during the warranty period until the supplemental lien bond is in place and the proper
insurances verified. Depending on the nature and scope of the corrective work, the local agency
may waive this supplemental lien bond, but not the liability insurance.
Warranty Inspections
Warranty inspections are limited to only mainline pavement areas. There are two types of
inspections conducted during the warranty period. The cursory inspection is a simplified
inspection to quickly identify segments in the project that may have distresses that exceed
threshold values. This cursory inspection normally does not require a lane closure and is
conducted from the roadway shoulder estimating distress lengths and widths. The detailed
inspection requires direct measuring and reporting of all observed distress in each segment.
Traffic control may be required to complete the detailed inspection.
The minimum inspection frequency for the various warranty provisions are specified in the
applicable warranty inspection guidelines, see Appendix B. The minimum number of inspections
is dependent upon the warranty duration. The local road agency may elect to perform additional
inspections over & above the recommended minimum interim inspections. The suggested time
frames in the inspection guidelines allow local road agencies to notify the contractor regarding
warranty compliance. Interim inspections may be delayed if weather makes it difficult to inspect
the road or creates an unsafe condition. Final inspections shall be completed in a timely manner
to ensure that there is enough time to document any thresholds that exceed the condition
thresholds and notify the contractor prior to the expiration of the warranty.
The designation of lanes during the warranty inspection shall be detailed adequately so that it is
clear to all involved in the warranty process which lane is being referenced. If necessary, a
sketch should be included. It is important to use the same lane numbering designation for all
inspections conducted throughout the warranty period.
If defects are found in any inspection, they should be carefully and accurately documented,
even if the severity or number does not meet the threshold to require corrective work. These
notes shall be kept in the inspection files and reviewed prior to all future inspections of the work.
The inspectors of the work should pay specific attention to areas previously noted, record those
defects, and list any changes in those defects differing from the last inspection.
Correction of Defects
If inspections during the warranty term show a defect has exceeded the allowable threshold as
defined in either the Hot Mixed Asphalt or Concrete Warranty specification, the contractor shall
be notified of the finding. The agency should call for a joint field investigation to determine the
cause of the defect, and to discuss the best possible remediation of the problem. If additional
forensic investigation is desired, the scope of the investigation, party or consultant to conduct
9
the investigation, and the cost split shall be agreed to by the engineer and contractor prior to
scheduling the investigation.
If the contractor and engineer are in agreement, the Engineer shall send notice to contractor in
writing the defect(s), location(s), recommended remediation and a request for a schedule to
complete the work. The contractor will reply back to the Engineer, copying the local agency
(and MDOT if MDOT had original construction oversight) with a schedule to complete the work.
The local agency will issue a permit to the contractor to complete the warranty work according
to the Local Agency’s Right-of-way permit policy. The contractor will complete the work under
the inspection of the Engineer.
If the contractor and engineer disagree, then a Conflict Resolution Team (CRT) may be
convened. The CRT will be made of:
● One (1) member selected, and compensated by the agency.
● One (1) member selected and compensated by the contractor.
● One (1) member mutually selected by the Agency and the contractor.
Compensation for the third party member will be equally shared by the agency
and the contractor.
At least two members of the CRT must vote in favor of a motion to make a decision. If the CRT
decides to conduct a forensic investigation, the CRT will determine the scope of work and select
the party to conduct the investigation. All costs related to the forensic investigation will be
shared proportionately between the contractor and the agency based on the determined cause
of the warranty defect condition.
Emergency Repairs
When the agency determines that emergency repairs of the warranted work are necessary for
public safety, the agency or its agent may take immediate and sufficient repair action to address
the imminent danger and to safeguard the traveling public. Prior to emergency repairs of
warranted work, the agency will document the basis for the emergency action. In addition, the
agency will preserve all documentation of the defective condition, including failed materials
samples if applicable.
Once the imminent danger to the public has been addressed, the local road agency shall notify
the contractor to explain the situation, identify the work temporarily done by the agency, and to
what further actions need to happen to return the warranted work and pavement to threshold
compliance. A joint inspection may be called to investigate the situation.
The emergency repairs of warranted work by the contractor must be authorized by the agency’s
engineer.
Should the contractor be unable to perform the emergency repair to the agency’s satisfaction
and/or within the time frame required by the agency, the agency will perform, or have performed
any emergency repairs deemed necessary. Any such emergency repairs undertaken will not
relieve the contractor from meeting the warranty requirements. Any costs associated with the
emergency repairs will be paid by the contractor when due to a cause from defective materials
and/or workmanship.
10
APPENDIX A
Flow Charts
11
12
**This is the process if MDOT has oversight and/or
** MDOT let bid.
If project is locally let, with no MDOT
oversight, the local agency shall determine the
process.
13
14
15
APPENDIX B
Inspection Guidelines
16
LOCAL AGENCY
WARRANTY INSPECTION GUIDELINES
HMA NEW CONSTRUCTION / RECONSTRUCTION
Warranty period: 5 Year
Inspection Period Begins: Interim - 6 months after Initial Acceptance
Final - 56 months after initial Acceptance
(Local Agency may do additional inspections)
Notes: 1. Segments defined as 528 foot (1/10 mile).
2. Each lane will be evaluated separately.
3. The threshold level for each distress type is determined separately.
Procedure: For both INTERIM & FINAL inspections
1. Perform overview inspection. Based on results of overview inspection,
recommend the project for either:
a. Acceptable – no corrective work needed. If this is the final
inspection recommend acceptance of the work, or
b. Detailed inspection – more detailed inspection and / or
measurements are needed
2. Perform detailed inspection if required. Based on the results of
detailed inspection, either:
a. Acceptable – no corrective work needed. If this is the final
inspection recommend acceptance of the work, or
b. Warranty work is needed – Provide contactor written notice of the
distresses and locations needing corrective work.
Condition Parameter Measurement:
Performance parameters will be measured as described for each of the
following distress types in mainline pavement areas:
1. Transverse Cracking - Total number of transverse cracks in a segment.
Each individual crack must exceed 5 feet in length to be included in the
total.
2. Longitudinal Cracking - Total linear feet of longitudinal cracks in a
segment. Each individual crack must exceed 5 feet in length to be
included in the total.
3. De-bonding- Total longitudinal length, in feet, of de-bonding in a
segment. Potholes are to be classified as de-bonding. Measure individual
de-bonding locations in the longitudinal direction, regardless of width of
the distress location and sum these lengths for the segment.
4. Raveling - Total longitudinal length, in feet, of raveling in a segment.
Measure individual raveling locations in the longitudinal direction,
regardless of width of the distress location and sum these lengths for the
segment.
5. Flushing - Total longitudinal length, in feet, of flushing in a segment.
Measure individual flushing locations in the longitudinal direction,
regardless of width of the distress location and sum these lengths for the
segment.
6. Rutting - The average rut depth, in inches, in a segment. Each wheel
path shall be evaluated separately. If rutting is found, the pavement
surface will be measured beginning at the POB and every 132 feet
thereafter to determine average rut depth to quantify rutting for a
17
particular segment. Rut measurements will be done using a straight rigid
device that is a minimum of 7 feet long and of sufficient stiffness that it
will not deflect from its own weight, or a wire under sufficient tension to
prevent sag when extended 7 feet. Measurements will be taken by
placing this “straightedge” across the pavement surface perpendicular to
the direction of travel. The straightedge shall contact the surface on at
least two bearing points with one located on either side of the rut. The
straightedge is properly located when sliding the straightedge along its
axis does not change the location of the contact points. Rut depth is then
measured at the point of greatest perpendicular distance from the bottom
of the straightedge to the pavement surface.
7. Alligator Cracking – Total area, in square feet, of alligator cracking in a
segment. Measure individual alligator cracked areas and sum the areas
for the segment.
Overview Inspection Procedure:
1. Review any notes from previous inspections.
2. Perform a “windshield” survey of the entire location length. Based solely
on visual examination and estimated measurements, approximate the
individual distress quantities for the questionable segment(s) of each
distress type and record on the inspection form. Details which should be
noted for the inspection include, but are not limited the following:
a. The lane or ramp where the distress was noted and the
associated direction.
b. Approximate distress location (i.e. 1/4 mile north of the POB, or at
the intersection of 1st St in SW quadrant, or near drive for house
#123..)
c. The distress quantity, in general terms (i.e. minor amounts of
longitudinal cracking; mid lane flushing).
d. Areas where temporary maintenance makes it difficult to
determine the type of distress, (i.e. presence of cold patching
material).
3. Estimate if any of the following distress threshold conditions are
exceeded
a. Transverse Cracking exceeds 3 total in the segment length (3
cracks within 528 feet) for any single segments.
b. Longitudinal Cracking exceeds 10 percent of the segment length
(53 feet within 528 feet) for any single segments.
c. Debonding exceeds 5 percent (5%) of the segment length (26
feet within 528 longitudinal feet) for any 1 segment.
d. Raveling exceeds 8 percent (8%) of the segment length (42 feet
within 528 longitudinal feet) for any 1 segment.
e. Flushing exceeds 5 percent (5%) of the segment length (26 feet
within 528 longitudinal feet) for any 1 segment.
f. Average rut depth exceeds 0.375 (3/8) inches for any 1 segment.
g. Any amount of alligator cracking.
4. If any condition above is estimated to be true:
a. Perform Detailed Inspection; and
18
b. Provide a description of the magnitude and location(s) of the
distress condition(s) observed which justify the Detailed
Inspection.
5. If all conditions above are false:
a. Recommend work is acceptable.
b. If this is an interim or other non-final inspection, put notes in file.
c. If this is final inspection recommend final acceptance.
Detailed Inspection Procedure:
1. Determine the questionable segments suspected of exceeding threshold
limits for each individual distress type based on the overview inspection
notes.
2. Document the lane, direction and distance from POB, of each
questionable segment identified in Step 1.
3. For each questionable segment, measure and record the amount of each
individual distress type and record on the inspection form.
a. Transverse Cracking
b. Longitudinal Cracking
c. De-bonding
d. Raveling
e. Flushing
f. Rutting
g. Alligator Cracking
4. Determine if any of the threshold limits for transverse cracking,
longitudinal cracking, de-bonding, raveling, flushing, or alligator cracking,
listed under Overview Inspection, are exceeded.
5. Evaluate segments where the average rut depth appears to exceed 0.25
inches as follows.
a. Measure the average rutting at all questionable segments to
verify that the threshold was exceeded.
6. Warranty work is required at those segments for which any of the
threshold limits for transverse cracking, longitudinal cracking, de-
bonding, raveling, flushing, rutting, or alligator cracking are exceeded.
Provide the contractor with results of the inspection indicating segments
where warranty work is required.
19
LOCAL AGENCY
WARRANTY INSPECTION GUIDELINES
HMA CONSTRUCTION OVER AGGREGATE BASE
WITHOUT BASE OR DRAINAGE IMPROVEMENT
Warranty period: 3 Year
Inspection Period Begins: Interim - 6 months after Initial Acceptance
Final - 32 months after initial Acceptance
(Local Agency may do additional inspections)
Notes: 1. Segments defined as 528 foot (1/10 mile).
2. Each lane will be evaluated separately
3. The threshold level for each distress type is determined separately.
Procedure: For both INTERIM & FINAL inspections
1. Perform overview inspection. Based on results of cursory inspection,
recommend the project for either:
a. Acceptable – no corrective work needed. If this is the final
inspection recommend acceptance of the work, or
b. Detailed inspection – more detailed inspection and / or
measurements are needed
2. Perform detailed inspection if required. Based on the results of
detailed inspection, either:
a. Acceptable – no corrective work needed. If this is the final
inspection recommend acceptance of the work, or
b. Warranty work is needed – Provide contactor written notice of the
distresses and locations needing corrective work.
Condition Parameter Measurement:
Performance parameters will be measured as described for each of the
following distress types in mainline pavement areas:
1. Transverse Cracking - Total number of transverse cracks in a segment.
Each individual crack must exceed 5 feet in length to be included in the
total.
2. Longitudinal Cracking - Total linear feet of longitudinal cracks in a
segment. Each individual crack must exceed 5 feet in length to be
included in the total.
3. De-bonding- Total longitudinal length, in feet, of de-bonding in a
segment. Potholes are to be classified as de-bonding. Measure individual
de-bonding locations in the longitudinal direction, regardless of width of
the distress location and sum these lengths for the segment.
4. Raveling - Total longitudinal length, in feet, of raveling in a segment.
Measure individual raveling locations in the longitudinal direction,
regardless of width of the distress location and sum these lengths for the
segment.
5. Flushing - Total longitudinal length, in feet, of flushing in a segment.
Measure individual flushing locations in the longitudinal direction,
regardless of width of the distress location and sum these lengths for the
segment.
6. Rutting - The average rut depth, in inches, in a segment. Each wheel
path shall be evaluated separately. If rutting is found, the pavement
surface will be measured beginning at the POB and every 132 feet
20
thereafter to determine average rut depth to quantify rutting for a
particular segment. Rut measurements will be done using a straight rigid
device that is a minimum of 7 feet long and of sufficient stiffness that it
will not deflect from its own weight, or a wire under sufficient tension to
prevent sag when extended 7 feet. Measurements will be taken by
placing this “straightedge” across the pavement surface perpendicular to
the direction of travel. The straightedge shall contact the surface on at
least two bearing points with one located on either side of the rut. The
straightedge is properly located when sliding the straightedge along its
axis does not change the location of the contact points. Rut depth is then
measured at the point of greatest perpendicular distance from the bottom
of the straightedge to the pavement surface.
7. Alligator Cracking – Total area, in square feet, of alligator cracking in a
segment. Measure individual alligator cracked areas and sum the areas
for the segment.
Overview Inspection Procedure:
1. Review any notes from previous inspections.
2. Perform a “windshield” survey of the entire location length. Based solely
on visual examination and estimated measurements, approximate the
individual distress quantities for questionable segment(s) of each distress
type and record on the inspection form. Details which should be noted for
the inspection include, but are not limited the following:
a. The lane or ramp where the distress was noted and the
associated direction.
b. Approximate distress location (i.e. 1/4 mile north of the POB, or at
the intersection of 1st St in SW quadrant, or near drive for house
#123..)
c. The distress quantity, in general terms (i.e. minor amounts of
longitudinal cracking; mid lane flushing).
d. Areas where temporary maintenance makes it difficult to
determine the type of distress, (i.e. presence of cold patching
material).
3. Estimate if any of the following distress threshold conditions are
exceeded
a. Transverse Cracking exceeds 3 total in the segment length (3
cracks within 528 feet) for any 2 segments. All reflective cracking
shall be ignored as these will not count against the allowable
amount.
b. Longitudinal Cracking exceeds 25 percent of the segment length
(132 feet within 528 feet) for any 2 segments. All reflective
cracking shall be ignored as these will not count against the
allowable amount.
c. Debonding exceeds 5 percent (5%) of the segment length (26
feet within 528 longitudinal feet) for any 1 segment..
d. Raveling exceeds 8 percent (8%) of the segment length (42 feet
within 528 longitudinal feet) for any 1 segment.
e. Flushing exceeds 5 percent (5%) of the segment length (26 feet
within 528 longitudinal feet) for any 1 segment.
f. Average rut depth exceeds 0.375 (3/8) inches for any 1 segment.
21
g. Any amount of alligator cracking.
4. If any condition above is estimated to be true:
a. Perform Detailed Inspection; and
b. Provide a description of the magnitude and location(s) of the
distress condition(s) observed which justify the Detailed
Inspection.
5. If all conditions above are false,
a. Recommend work is acceptable.
b. If this is an interim or other non-final inspection, put notes in file.
c. If this is final inspection recommend final acceptance.
Detailed Inspection Procedure:
1. Determine the questionable segments suspected of exceeding threshold
limits for each individual distress type based on the overview inspection
notes.
2. Document the lane, direction and distance from POB, of each
questionable segment identified in Step 1.
3. For each questionable segment, measure and record the amount of each
individual distress type and record on the inspection form.
a. Transverse Cracking
b. Longitudinal Cracking
c. De-bonding
d. Raveling
e. Flushing
f. Rutting
g. Alligator Cracking
4. Determine if any of the threshold limits for transverse cracking,
longitudinal cracking, de-bonding, raveling, flushing, or alligator cracking,
listed under Overview Inspection, are exceeded.
5. Evaluate segments where the average rut depth appears to exceed 0.25
inches as follows.
a. Measure the average rutting at all questionable segments to
verify that the threshold was exceeded.
6. Warranty work is required at those segments for which any of the threshold
limits for transverse cracking, longitudinal cracking, de-bonding, raveling,
flushing, rutting, or alligator cracking are exceeded. Provide the
contractor with results of the inspection indicating segments where
warranty work is required.
22
LOCAL AGENCY
WARRANTY INSPECTION GUIDELINES
HMA OVERLAY
Warranty period: 1 Year
Inspection Period Begins: Final - 10 months after Initial Acceptance
(Local Agency may do additional inspections such as at 6 months
after initial acceptance, after spring break up, etc.)
Notes: 1. Segments defined as 528 foot (1/10 mile).
2. Each lane will be evaluated separately.
3. The threshold level for each distress type is determined separately.
Procedure: 1. Preform overview inspection. Based on results of cursory inspection,
recommend the project for either:
a. Acceptable – no corrective work needed. If this is the final
inspection recommend acceptance of the work, or
b. Detailed inspection – more detailed inspection and / or
measurements are needed
2. Perform detailed inspection if required. Based on the results of detailed
inspection, either:
a. Acceptable – no corrective work needed. If this is the final
inspection recommend acceptance of the work, or
b. Warranty work is needed – Provide contactor written notice of the
distresses and locations needing corrective work.
Condition Parameter Measurement:
Performance parameters will be measured as described for each of the
following distress types in mainline pavement areas:
1. Transverse Cracking - Total number of transverse cracks in a segment.
Only count cracks that are not “reflective” from a prior crack or joint.
Count all transverse cracks that cannot be positively identified as
“reflective” or are questionable. Each individual crack must exceed 5 feet
in length to be included in the total. Ignore transverse cracking for all
single course overlays, or if the total thickness of multiple course
overlays is 2” or less.
2. Longitudinal Cracking - Total linear feet of longitudinal cracks in a
segment. Only count cracks that are not “reflective” from a prior crack or
joint. Count all longitudinal cracks that cannot be positively identified as
“reflective” or are questionable. Each individual crack must exceed 5 feet
in length to be included in the total. Ignore transverse cracking for all
single course overlays, or if the total thickness of multiple course
overlays is 2” or less.
3. De-bonding- Total longitudinal length, in feet, of de-bonding in a
segment. Potholes are to be classified as de-bonding. Measure individual
de-bonding locations in the longitudinal direction, regardless of width of
the distress location and sum these lengths for the segment.
4. Raveling - Total longitudinal length, in feet, of raveling in a segment.
Measure individual raveling locations in the longitudinal direction,
regardless of width of the distress location and sum these lengths for the
segment.
23
5. Flushing - Total longitudinal length, in feet, of flushing in a segment.
Measure individual flushing locations in the longitudinal direction,
regardless of width of the distress location and sum these lengths for the
segment.
6. Rutting - The average rut depth, in inches, in a segment. Each wheel
path shall be evaluated separately. If rutting is found, the pavement
surface will be measured beginning at the POB and every 132 feet
thereafter to determine average rut depth to quantify rutting for a
particular segment. Rut measurements will be done using a straight rigid
device that is a minimum of 7 feet long and of sufficient stiffness that it
will not deflect from its own weight, or a wire under sufficient tension to
prevent sag when extended 7 feet. Measurements will be taken by
placing this “straightedge” across the pavement surface perpendicular to
the direction of travel. The straightedge shall contact the surface on at
least two bearing points with one located on either side of the rut. The
straightedge is properly located when sliding the straightedge along its
axis does not change the location of the contact points. Rut depth is then
measured at the point of greatest perpendicular distance from the bottom
of the straightedge to the pavement surface.
7. Alligator Cracking – Total area, in square feet, of alligator cracking in a
segment. Measure individual alligator cracked areas and sum the areas
for the segment.
Overview Inspection Procedure:
1. Review any notes from previous inspections.
2. Perform a “windshield” survey of the entire location length. Based solely
on visual examination and estimated measurements, approximate the
individual distress quantities for the questionable segment(s) of each
distress type and record on the inspection form. Details which should be
noted for the inspection include, but are not limited the following:
a. The lane or ramp where the distress was noted and the
associated direction.
b. Approximate distress location (i.e. 1/4 mile north of the POB, or at
the intersection of 1st St in SW quadrant, or near drive for house
#123..)
c. The distress quantity, in general terms (i.e. minor amounts of
longitudinal cracking; mid lane flushing).
d. Areas where temporary maintenance makes it difficult to
determine the type of distress, (i.e. presence of cold patching
material).
3. Estimate if any of the following distress threshold conditions are
exceeded
a. Transverse Cracking exceeds 3 total in the segment length (3
cracks within 528 feet) for any 3 segments. All reflective cracking
shall be ignored as these will not count against the allowable
amount.
b. Longitudinal Cracking exceeds 25 percent of the segment length
(132 feet within 528 feet) for any 3 segments. Ignore all reflective
cracking. All reflective cracking shall be ignored as these will not
count against the allowable amount.
24
c. Debonding exceeds 5 percent (5%) of the segment length (26
feet within 528 longitudinal feet) for any 1 segment.
d. Raveling exceeds 8 percent (8%) of the segment length (42 feet
within 528 longitudinal feet) for any 1 segment.
e. Flushing exceeds 5 percent (5%) of the segment length (26 feet
within 528 longitudinal feet) for any 1 segment.
f. Average rut depth exceeds 0.375 (3/8) inches for any 1 segment.
g. Any amount of alligator cracking.
4. If any condition above (in item 2) is estimated to be true:
a. Perform Detailed Inspection; and
b. Provide a description of the magnitude and location(s) of the distress
condition(s) observed which justify the Detailed Inspection.
5. If all conditions above are false,
a. Recommend work is acceptable.
b. If this is an interim or other non-final inspection, put notes in file
c. If this is final inspection recommend final acceptance.
Detailed Inspection Procedure:
1. Determine the questionable segments suspected of exceeding threshold
limits for each individual distress type based on the overview inspection
notes.
2. Document the lane, direction and distance from POB, of each
questionable segment identified in Step 1.
3. For each questionable segment, measure and record the amount of each
individual distress type and record on the inspection form.
a. Transverse Cracking
b. Longitudinal Cracking
c. De-bonding
d. Raveling
e. Flushing
f. Rutting
g. Alligator Cracking
4. Determine if any of the threshold limits for transverse cracking,
longitudinal cracking, de-bonding, raveling, flushing, or alligator cracking,
listed under Overview Inspection, are exceeded.
5. Evaluate segments where the average rut depth appears to exceed 0.25
inches as follows.
a. Measure the average rutting at all questionable segments to
verify that the threshold was exceeded.
6. Warranty work is required at those segments for which any of the
threshold limits for transverse cracking, longitudinal cracking, de-
bonding, raveling, flushing, rutting, or alligator cracking are exceeded.
Provide the contractor with results of the inspection indicating segments
where warranty work is required.
25
LOCAL AGENCY
WARRANTY INSPECTION GUIDELINES
NEW/RECONSTRUCTED JOINTED PLAIN CONCRETE PAVEMENT
Warranty period: 5 Years
Inspection Period Begins: Interim -30 months after Initial Acceptance
Final - 56 months after initial Acceptance
(Local Agency may do additional inspections)
Notes: 1. Segment - 528 feet in a specific driving lane. For inspection a segment
begins at the point where the joint sealant failure or pavement distress
begins to appear and extends for 528 feet from that point.
2. Slab - The pavement outlined between consecutive transverse joints and
longitudinal joints or a longitudinal joint and the outer pavement edge.
Segments consist of one or more slabs.
3. Driving Lanes - Each of the following is considered a Driving Lane.
a. Each individual mainline lane.
b. The sum of all ramp lanes and associated
acceleration/deceleration lanes.
c. The sum of all auxiliary lanes, such as passing lanes and turn
lanes.
4. Condition Parameters - Each condition parameter has a threshold level
applied to each segment and a maximum number of defective segments
before corrective action is required. A segment is defective if the
threshold level is exceeded.
5. Longitudinal Joint Designation - All inspections relate to the driving
lane as defined in the warranty special provision. For tallying joint sealant
failure and pavement distress (spalling), consider the entire perimeter of
the slab in all cases. The condition parameter of the full joint associated
with the slab being evaluated is considered even though two adjacent
slabs may share the same interior longitudinal joint.
6. The contractor will not be required to take corrective measures as a
result of the interim inspection unless the Engineer determines
emergency repairs are needed for public safety. Any faults or distresses
noted will be logged and verified with the final inspection.
Procedure: For both INTERIM & FINAL inspections
1. Perform overview inspection. Based on results of overview inspection,
recommend the project for either:
a. Acceptable – no corrective work needed. If this is the final
inspection recommend acceptance of the work, or
b. Detailed inspection – more detailed inspection and / or
measurements are needed
2. Perform detailed inspection if required. Based on the results of
detailed inspection, either:
a. Acceptable – no corrective work needed. If this is the final
inspection recommend acceptance of the work, or
b. Warranty work is needed – Provide contactor written notice of the
distresses and locations needing corrective work.
26
Overview Inspection Procedure:
1. Review any notes from previous inspections of the work.
2. Perform a “windshield” survey of the entire project length. Inspect all
driving lanes. Based solely on visual examination and estimated
measurements, approximate the individual distress quantities for the
questionable segment(s) of each distress type and record on the
inspection form. Details which should be noted for the inspection include,
but are not limited the following:
a. The lane or ramp where the distress was noted and the associated
direction.
b. Approximate distress location (i.e. 1/4 mile north of the POB, or at the
intersection of 1st St in SW quadrant, or near drive for house #123..)
c. Estimate the distress quantity. Also include a description of distress
in general terms (i.e. minor amounts of longitudinal cracking; every
joint has loss of sealant).
d. Areas where temporary maintenance makes it difficult to determine
the type of distress, (i.e. presence of cold patching material).
3. If this is an interim or other non-final inspection, Put notes in file and
STOP HERE.
4. If this is the final inspection, estimate if any of the following distress
threshold conditions are exceeded
a. Transverse Cracking exceeds 2 total for any 1 segment. (2 cracks
within 528 feet).
b. Longitudinal Cracking exceeds 5 percent (5%) of the segment length
(26 feet within 528 feet) for any 1 segment.
c. Map Cracking exceeds 10 percent (10%) of the segment area (632
square feet within 528 longitudinal feet assuming 12 foot lane width)
for any 1 segment.
d. Spalling exceeds 10 percent (10%) of each slab. Can be non-
contiguous. Include all 4 sides of the slab.
e. Scaling exceeds 15 percent (15%) of the slab area.
f. Corner cracking exceeds 1 for any 1 segment.
g. Joint Sealant failure exceeds 10 percent (10%) total joint length in a
segment. Include both longitudinal & transverse joints
h. Any shattered slabs.
5. If any condition above is true:
a. Perform Detailed Inspection; and
b. Provide a description of the magnitude and location(s) of the distress
condition(s) observed which justify the Detailed Inspection.
6. If all conditions above are false and this is the final inspection, recommend
Final Acceptance.
Detailed Inspection Procedure: This will be done at FINAL inspection when distresses are
estimated to be at threshold levels, and at INTERIM inspections as directed by the engineer.
1. Determine the questionable segments suspected of exceeding threshold
limits for each individual distress type based on the overview inspection
notes.
27
2. Document the lane, direction and distance from POB, of each
questionable segment identified in Step 1.
3. For each questionable segment, measure and record the amount of each
individual distress type and record on the inspection form.
a. Transverse Cracking
b. Longitudinal Cracking
c. Map Cracking
d. Spalling
e. Flushing
f. Scaling
g. Joint sealant failure
h. Shattered slabs
4. Determine if any of the threshold limits for the various distresses are
exceeded.
5. Warranty work is required at those segments for which any of the threshold
limits are exceeded. Provide the contractor with results of the inspection
indicating segments where warranty work is required.
28
APPENDIX C
Inspection Forms
Under Development
The inspections forms have not been developed to-date; the Task Force Education Committee is
working with LTAP to create inspection forms compatible with the RoadSoft program to enable
tracking the warranty inspection forms to the actual location along a road segment
29
INSPECTION FORM FOR HMA WARRRANTY WORK
Inspected By: _____________________________________ Date: ____________________
Type of inspetion: ___ Interim ___ Final ___ Special
Type of Construction: ___ New HMA Construction / Reconstruction
___ HMA over Ag. Base without other imrovements
___ HMA Overlay
Distresses Found? ____Yes (Describe below, attach additonal sheets if needed) ____No
Distresses Found: (Describe type, severity & location)
Corrective action needed? _____ Yes _____ No _____ Needs further evaluation
Signed (INSPECTOR):__________________________________________________________
Checked by (ENGINEER):_______________________________________________________
30
INSPECTION FORM FOR CONCRETE WARRRANTY WORK
Inspected By: _____________________________________ Date: ____________________
Type of inspetion: ___ Interim ___ Final ___ Special
Type of Construction: ___ Plain Concrete
___ Reinforced Concrete
Distresses Found? ____Yes (Describe below, attach additonal sheets if needed) ____No
Distresses Found: (Describe type, severity & location)
Corrective action needed? _____ Yes _____ No _____ Needs further evaluation
Signed (INSPECTOR):__________________________________________________________
Checked by (ENGINEER):_______________________________________________________
31
APPENDIX D
Model Pavement Warranty
Contract and Bond Forms
32
MICHIGAN
LOCAL AGENCY
SPECIAL PROVISION
FOR
PASS-THROUGH WARRANTY BONDS
LM 1 of 1 9/5/2017
a. Description. This special provision establishes the conditions under which and method
for a contractor to assign responsibility for the warranty obligations and the providing of a warranty
bond to a warranty contractor(s). Second tier subcontractor assignments are prohibited.
b. Requirements. Ensure the Warranty Contract(s) and warranty bond(s) are on forms
provided by the Local Agency. Ensure the bonds meet the requirements of Michigan law and of
the Local Agency and include other items such as the powers of Attorney and Endorsement as
specified by the Local Agency.
c. Method. The assignment must be made to the warranty contractor(s) that will perform
the work covered by the warranty. If for any reason after signing the Warranty Contract and
providing the W arranty Bond, the warranty contractor does not perform the work, the warranty
contractor will remain obligated for the warranty obligations and the warranty bond obligations will
remain in effect unless the Local Agency consents in writing to substituting a different contractor to
assume those warranty obligations and accepts a substitute warranty bond.
The assignment of warranty work must be designated with and at the time of electronic bid
submittal. To become a warranty contractor responsible for the warranty obligations of the contract,
and providing a warranty bond, the warranty contractor must complete and submit to the Local
Agency a Warranty Contract and a Warranty Bond for each warranty it will be responsible for.
Ensure the Warranty Contract is signed by an authorized signer of the warranty contractor, as
identified in its prequalification application.
Submit the Warranty Contract and Warranty Bond to the Local Agency prior to award of the
construction contract to the prime contractor for the work to which the warranty applies. Ensure the
warranty contractor is prequalified in the work classification for the type of work to be warranted.
The Warranty Bond must guarantee performance of all warranty obligations for the covered work,
in accordance with the Warranty Contract. All provisions of the prime contract will be applicable
to the warranty contractor in regard to the warranty work, except as otherwise expressly provided
in the Warranty Contract.
Under no circumstances does the assignment of the warranty work and the execution of a
Warranty Contract create any obligations to the Local Agency beyond the obligations undertaken
in the prime contract. The purpose of the Local Agency accepting the assignment of warranty
obligations is to allow a warranty contractor to stand in place of the prime contractor for purposes
of the warranty work without increasing any obligation or liability that the Local Agency would have
had if the prime contractor had not assigned the warranty work.
d. Measurement and Payment. This work will not be paid for separately, but will be included
in costs for other pay items.
33
<local agency name>
LOCAL AGENCY
PASS-THROUGH WARRANTY BOND
Bond Number:________________________________
KNOWN ALL MEN BY THESE PRESENTS
That we, (hereinafter called the "Principal" and
(hereinafter called "Surety") a corporation duly
organized under the laws of the State of and duly licensed to transact business in the
State of Michigan, are held and firmly bound unto the ___<local agency name>___________
(hereinafter called the "Obligee"), in the sum of $__________________________
dollars for the payment of which sum well and truly to be made, we, the said Principal and the
said Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, jointly
and severally, firmly by these presents.
WHEREAS, the said Principal has heretofore entered into a contract with the Obligee,
under Contract ID and;
WHEREAS, the said Principal is required to guarantee the:
installed under said contract, against defects in materials or workmanship which may develop
during the period of years beginning the date of the Acceptance Date of Warranted Work by the
Obligee.
In no event shall losses paid under this bond aggregate more than the amount of the bond.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if said Principal
shall faithfully carry out and perform the said guarantee, and shall, on due notice, repair and make
good at its own expense any and all defects in materials or workmanship in the said work which may
develop during the period specified above or shall pay over, make good and reimburse to the said
Obligee all loss and damage which said Obligee may sustain by reason of failure or default of said
Principal so to do, then this obligation shall be null and void; otherwise shall remain in full force and
effect.
PROVIDED HOWEVER, that in the event of any default on the part of said Principal, a written
statement of the particular facts showing such default and the date thereof shall be delivered to
the Surety by registered mail, promptly in any event within ten (10) days after the Obligee or his
representative shall learn of such default and that no claim, suit or action by reason of any default
of the Principal shall be brought hereunder after the expiration of thirty (30) days from the end of
the warranty period as herein set forth.
Signed by:________________ day of ________________ 20_____________.
Contractor__________________________________________
By____________________________________________________
Surety_________________________________________________
By____________________________________________________
34
PASS THROUGH WARRANTY CONTRACT
This contract ID number is executed on the date signed below by the ________________________ of
the <local agency name> between the Warranty Contractor, Prime Contractor and the Local Agency in conjunction
with the execution of this contract ID number, between the Local Agency and
the Prime Contractor.
(Warranty Contractor)
(Prime Contractor)
The work included within this Warranty Contract is, described here:
The Warranty Contractor represents that it has entered into a subcontract with the Prime Contractor to perform
Warranted Work for the project, but that any failure to have properly done so, or any breach or failure in the performance
of that subcontract, shall not diminish or otherwise affect the obligations of the Warranty Contractor to the Local Agency
under this warranty contract. Nor shall the obligations of the Warranty Contractor to the Local Agency under this warranty
contract be diminished or affected if the Prime Contractor or some other person performs some or all of the Warranted
Work or warranty obligations for the project, unless the Local Agency consents to, and executes, a written amendment to
this warranty contract.
Insofar as they pertain to the warranty rights and obligations, the terms of the contract are hereby incorporated by
reference into this warranty contract and, for purposes of this warranty contract, references in the contract to the
contractor shall be deemed to refer to the Warranty Contractor.
The Warranty Contractor hereby agrees to fulfill and perform, without qualification or exception, all of the warranty
obligations under the terms of the contract, as if they were the Prime Contractor. Until acceptance of the Warranted
Work, the Prime Contractor will be responsible to the Department for ensuring completion of the Warranted Work and to
the Local Agency for fulfilling the terms of the warranty for that work. Upon acceptance of the Warranted Work, the
Warranty Contractor shall have full responsibility for the warranty obligations and the Prime Contractor will be relieved of
further obligation for performing those warranty obligations.
The Warranty Contractor agrees that its obligations to the Local Agency under this warranty contract are the same as if
the Warranty Contractor was the Prime Contractor; the Warranty Contractor can assert no rights, defenses or
qualifications to the warranty obligations under the contract that would have been unavailable to the Prime Contractor, if
the Prime Contractor had retained contractual responsibility for the warranty. The Warranty Contractor may assert the
same rights under the terms of the warranty as could have been asserted by the Prime Contractor, if the Prime Contractor
had retained contractual responsibility for the warranty.
This warranty contract may be executed prior to execution of the contract with the Prime Contractor, provided that if
the Local Agency fails to execute the contract with the Prime Contractor this warranty contract shall be null and void.
By: ______________________________________________ By: ______________________________________________
Title: __________________________________ ____________ Title: __________________________________ ______________
By:__________________________________________________
Typed name: ____________________________________
Local Agency: ___________________________________
Date: _______________________________________________
35
APPENDIX E
Reporting Forms
Under Development
Local Road Agencies Warranty Program Reporting
We have partnered with the Transportation Asset Management Council to modify the
Investment Reporting Tool to provide an open and transparent reporting method for each local
transportation agency. The reporting fields will be enabled as soon as the Local Agency
Pavement Warranty Program is approved by MDOT
We have also partnered with the Michigan Technological University - CTT to modify the
Roadsoft Program to provide a common data entry method for each local road agency. The
Roadsoft warranty data fields will be imported into the TAMC ITR module to provide a statewide
presentation of the warranty projects that exceed the $ 2,000,000 threshold.
36
APPENDIX F
Education and Training
Under Development
Education of Local Road Agencies on Local Pavement Warranty Program
Since the passage of the 2015 Transportation Package, the CRA has been informing its
members of the coming warranty requirement; the Engineering Updates provided by the CRA-
MML Engineering Specialist have also described the imminent Local Pavement Warranty
Program. The CRA provided updates about the Local Pavement Warrant Program at its nine
regional Council meetings during fall-winter 2017-2018; at its County Engineers Workshop in
February 2018; at its Highway Conference in March 2018, and at its Road Commissioners
Conference in April 2018. The CRA is also developing this Guidance Document on Local
Pavement Warranties to serve as the training manual for. The CRA has scheduled and
dedicated a large portion of its annual 2017 Law Symposium to a session on Implementing the
New Local Pavement Warranties on December 5, 2017; speakers include the legal counsel
from the Road Commission for Oakland County and CRA-MML Engineering Specialist Steve
Puuri. The CRA-MML Engineering Specialist Steve Puuri and two bond counsel
representatives provided an update at the Michigan Concrete Association.
In addition, the Local Pavement Warranty Task Force has created an Education Committee that
has been developing model agency adoption resolutions and training materials. The Task
Force has partnered with the Local Technical Assistance Program to develop and conduct
training program for decision makers and project staff. The Education Committee is poised to
distribute adoption and training materials upon approval of the Local Agency Pavement
Warranty Program by MDOT. Finally, the Task Force has developed this Guidance Document to
assist local agency decision makers and project staff with implementing their Local Agency
Pavement Warranty program.
37
Affirmative Action
(231)724-6703
FAX (231)722-1214
Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129
Cemetery/Forestry
(231)724-6783
FAX (231)724-4188
City Manager
(231)724-6724
FAX (231)722-1214
Clerk
(231)724-6705
FAX (231)724-4178 RESOLUTION TO ADOPT A LOCAL PAVEMENT WARRANTY PROGRAM
Comm. & Neigh.
WHEREAS, the Michigan Legislature (MCL 247.663) requires each city or village to adopt a
Services
(231)724-6717
FAX (231)726-2501 Local Agency Pavement Warranty Program that was approved by the Michigan Department
Computer Info. of Transportation in 2018;
Technology
(231)724-4126
FAX (231)722-4301
WHEREAS, the Michigan Local Agency Pavement Warranty Program was developed by the
Engineering Local Agency Pavement Warranty Task Force for use by all 533 cities and villages in the
(231)724-6707
FAX (231)727-6904 format approved by the Michigan Department of Transportation in 2018;
Finance
(231)724-6713 WHEREAS, the Michigan Department of Transportation has reviewed and approved the
FAX (231)726-2325
Michigan Local Agency Pavement Warranty Program consisting of Special Provisions
Fire Department
(231)724-6795
(Boilerplate, Concrete, HMA, Location, Pass-Through Warranty Bond); a Warranty Bond Form
FAX (231)724-6985 and Contract Form; and Guidelines for Local Agency Pavement Warranty Programs;
Human Resources
Co. (Civil Service)
(231)724-6442 NOW THEREFORE BE IT RESOLVED, the City of Muskegon hereby adopts the Michigan Local
FAX (231)724-6840 Agency Pavement Warranty Program and accompanying documents in accordance to the
Income Tax requirements of MCL 247.663;
(231)724-6770
FAX (231)724-6768
BE IT FURTHER RESOLVED, this resolution is made a part of the minutes of the City of
Mayor’s Office
(231)724-6701 Muskegon meeting on September 10, 2019.
FAX (231)722-1214
Planning/Zoning Approved on September 10, 2019 by:
(231)724-6702
FAX (231)724-6790
Police Department
(231)724-6750 AYES:
FAX (231)722-5140
Public Works
(231)724-4100
NAYS:
FAX (231)722-4188
SafeBuilt RESOLUTION DECLARED ADOPTED.
(Inspections)
(231)724-6715
FAX (231)728-4371
Treasurer _______________________________________________
(231)724-6720
FAX (231)724-6768
Ann Marie Meisch
City Clerk
Water Billing
(231)724-6718
FAX (231)724-6768
Water Filtration
(231)724-4106
FAX (231)755-5290 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
http://www.shorelinecity.com
Affirmative Action
(231)724-6703
FAX (231)722-1214
Assessor/
Equalization Co.
(231)724-6386
FAX (231)724-1129
Cemetery/Forestry
(231)724-6783
FAX (231)724-4188
City Manager
(231)724-6724
FAX (231)722-1214
RESOLUTION TO IMPLEMENT A LOCAL PAVEMENT WARRANTY PROGRAM
Clerk
(231)724-6705
FAX (231)724-4178 WHEREAS, The Michigan Legislature created a requirement (MCL 247.663) as part of the
Comm. & Neigh.
Transportation Funding Package of 2015 that requires each city and village to adopt a Local
Services Agency Pavement Warranty Program that was approved by the Michigan Department of
(231)724-6717
FAX (231)726-2501 Transportation in 2018;
Computer Info.
Technology WHEREAS, the City of Muskegon adopted the Michigan Local Agency Pavement Warranty
(231)724-4126
FAX (231)722-4301 Program on September 10, 2019.
Engineering
(231)724-6707 WHEREAS, the City of Muskegon agrees to consider a local pavement warranty on each
FAX (231)727-6904
project that includes $2 million or more in paving-related items and includes any state or
Finance
(231)724-6713 federal funds;
FAX (231)726-2325
Fire Department WHEREAS, the Local Agency Pavement Warranty Program law requires each city and village
(231)724-6795
FAX (231)724-6985 to report annually on each project that includes $2 million or more in paving-related items
Human Resources
and includes any state or federal funds, whether or not a warranty was utilized in the
Co. (Civil Service) project;
(231)724-6442
FAX (231)724-6840
Income Tax
WHEREAS, the City of Muskegon agrees to implement the Michigan Local Agency Pavement
(231)724-6770 Warranty Program consistent with the Guidelines for Local Agency Pavement Warranty
Program document that was approved by the Michigan Department of Transportation in
FAX (231)724-6768
Mayor’s Office
(231)724-6701
2018; and which the City of Muskegon adopted Implementation Policy defines the City of
FAX (231)722-1214 Muskegon’s intent of its pavement warranty program;
Planning/Zoning
(231)724-6702
FAX (231)724-6790
NOW THEREFORE BE IT RESOLVED, the City of Muskegon hereby agrees to implement the
Local Agency Pavement Warranty Program and annually report in accordance with the law.
Police Department
(231)724-6750
FAX (231)722-5140 Approved on September 10, 2019 by:
Public Works
(231)724-4100
FAX (231)722-4188
AYES:
SafeBuilt
(Inspections) NAYS:
(231)724-6715
FAX (231)728-4371
RESOLUTION DECLARED ADOPTED.
Treasurer
(231)724-6720
FAX (231)724-6768
Water Billing _______________________________________________
(231)724-6718
FAX (231)724-6768 Ann Marie Meisch
Water Filtration City Clerk
(231)724-4106
FAX (231)755-5290 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
http://www.shorelinecity.com
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 9/10/2019 Title: Amendment to Vacant Building Ordinance
and Vacant Building Registration Fees
Submitted By: LeighAnn Mikesell Department: Planning
Brief Summary: Amend Section 10-107 of the City Code of Ordinances to require seasonal
homes to be registered with the Public Safety Division, allow additional circumstances for
waiving vacant building fees, and eliminate additional fees being applied when registration
fees are not paid. Staff is also seeking approval of modification to Vacant Building
Registration Fees for buildings zoned for Residential use and for buildings zoned for
Commercial or Industrial Use.
Detailed Summary: To amend Section 10-107 of the City Code of Ordinances to modify which
buildings must be registered and the process and circumstances for waiving fees. The
amendment would require seasonal homes to be registered with the Public Safety Division,
allow additional circumstances for waiving vacant building fees, and eliminate additional fees
being applied when registration fees are not paid. Staff is also seeking approval of
modification to Vacant Building Registration Fees for buildings zone for Residential use and
for buildings zoned for Commercial or Industrial Use. No fees will be charged until the building
has been vacant for one year.
Vacant Building Zoned for Residential Use $100 per year
Vacant Building Zoned for Commercial or Industrial
$500 per year
Use
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To approve the amendments to Section 10-107 of the City Code of
Ordinances and to approve modification of Vacant Building Registration Fees.
For City Clerk Use Only:
Commission Action:
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. ____
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
1. Chapter 10, Article III, Division 2, Subdivision II of the Code of Ordinances of
the City of Muskegon, Michigan, Section 10-107(b)(2) is being amended to read
as follows:
(2) Applicability. The requirements of this section shall be applicable to each
owner of any building that is not a dwelling that shall have been vacant for more
than 90 consecutive days and to each owner of residential property consisting of
one or more vacant dwellings that shall have been vacant for more than 90
consecutive days, unless the dwelling is a seasonal home. All seasonal homes
must be registered with the Department of Public Safety. Each such owner shall
cause to be filed a registration statement, which shall include the street address
and parcel number of each such vacant building, the names and addresses of all
owners, as hereinafter described, and any other information deemed necessary by
the city. The registration fees as required by subsection (b)(3) of this section shall
be billed annually by the city and shall be paid within 30 days of the invoice date.
For purposes of this section, the following shall also be applicable:
a. If the owner is a corporation or a limited liability corporation, the
registration statement shall provide the names and residence addresses
of all officers, directors and/or members and shall be accompanied by
a copy of the most recent annual tax report filed with the state;
b. If an estate, the name and business address of the executor of the
estate;
c. If a trust, the name and address of all trustees, grantors, and
beneficiaries;
d. If a partnership, the names and residence addresses of all partners with
an interest of ten percent or greater;
e. If any other form of unincorporated association, the names and
residence addresses of all principals with an interest of ten percent or
greater;
f. If an individual person, the name and residence address of that
individual person.
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2. Chapter 10, Article III, Division 2, Subdivision II of the Code of Ordinances of
the City of Muskegon, Michigan, Section 10-107(b)(3) is being amended to read
as follows:
(3) Registration statement and fees; local agent. If none of the persons listed,
as above, are shown at an address within the state or the home is a qualified
vacation home or seasonal residence, the registration statement also shall provide
the name and address of a person who resides within the state and who is
authorized to accept service of process on behalf of the owners and who shall be
designated as a responsible, local part or agent, both for purposes of notification
in the event of an emergency affecting the public health, safety or welfare and for
purposes of service of any and all notices or registration statements as herein
authorized and in connection herewith. Registration shall be required for all
vacant buildings, whether vacant and secure, vacant and open or vacant and
boarded, and shall be required whenever any building has remained vacant for 90
consecutive days or more, except in the case of seasonal homes. All seasonal
homes must be registered with the Department of Public Safety. In no instance
shall the registration of a vacant building and the payment of registration fees be
construed to exonerate the owner, agent or responsible party from responsibility
for compliance with any other state construction code requirement. The owner of
the vacant property, at the time of billing, shall be responsible for the payment of
the nonrefundable registration fee. Said fee shall be billed annually by the city
and based on the duration of the vacancy as determined by the master fee
resolution.
3. Chapter 10, Article III, Division 2, Subdivision II of the Code of Ordinances of
the City of Muskegon, Michigan, Section 10-107(b)(5) is being amended to read
as follows:
(5) One-time wWaiver of registration fee. A one-time waiver of the
registration fee may be granted by the committee appointed by the city manager
upon application of the owner, if all taxes and fees, such as, but not limited to,
property taxes, mowing charges, past vacant building registration fees, landlord
registrations, business registrations, utilities and any other applicable charges,
have been paid prior to application for the waiver. If the The owner must:
a. Demonstrates with satisfactory proof that he is in the process of demolition,
rehabilitation, or other substantial repair of the vacant building; and
b. Objectively demonstrates the anticipated length of time for the demolition,
rehabilitation, or other substantial repair of the vacant building, or
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c. Provides satisfactory proof, such as sales contract with realtor, advertisement
for sale, etc., that he was actively attempting to sell or lease the property
during the vacancy period.
Formatted: List Paragraph, No bullets or numbering
Upon the issuance of a certificate of occupancy, the committee appointed by the
City Manager may waive vacant building fees attributable to a prior owner if the
certificate of occupancy is issued within 12 months of the applicant’s acquisition of
ownership. The Committee may waive up to ten years of vacant building registration
fees. All other taxes and fees must be paid in full prior to the application being
considered.
After the sale of tax foreclosed real property by Muskegon County or the Muskegon
County Land Bank, the committee appointed by the City Manager may waive vacant
building fees attributable to owners acquiring title after the tax foreclosure if the
certificate of occupancy is issued within 12 months of the applicant’s acquisition of
ownership. All other taxes and fees must be paid in full prior to the application being
considered.
c. Formatted: No bullets or numbering
4. Chapter 10, Article III, Division 2, Subdivision II of the Code of Ordinances of
the City of Muskegon, Michigan, Section 10-107(b)(7)(e) is being amended to
read as follows:
(e) Violations; penalties. The failure or refusal for any reason of any owner, or agent
of an owner acting on behalf of the owner, to register a vacant building or to pay any
fees required to be paid pursuant to the provisions of this section, within 30 days the
registration is after they become due, shall constitute a violation punishable upon
conviction thereof by a fine in the amount of not less than $100.00 not more than
$500.00 for each failure or refusal to register, or for each failure or refusal to pay a
required vacant building fee, as applicable. In such cases, whenever the minimum
fine of $100.00 is imposed, it shall not be subject to suspension or reduction for any
reason.
5 This Ordinance is to become effective ten (10) days after adoption.
Ayes:
Nays:
First Reading:
Second Reading:
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CERTIFICATE
The undersigned, being the duly qualified Clerk of the City of Muskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the ____ day of
_______________, 2019, at which meeting a quorum was present and remained
throughout, and that the meeting was conducted and public notice was given pursuant to
and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as amended,
and that minutes were kept and will be or have been made available as required thereby.
Date:_______________________, 2019
________________________________
Ann Marie Meisch, MMC
City Clerk
Publish: Notice of Adoption to be published once within ten (10) days of final
adoption.
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CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on ___________________, 2019, the City Commission of
the City of Muskegon amended Chapter 10, Article III, Section 10-107 summarized as
follows:
1. TO BE DRAFTED LATER
2.
Copies of the ordinance may be viewed and purchased at reasonable cost at the
Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan,
during regular business hours.
This ordinance amendment is effective ten (10) days from the date of this
publication.
Published: _________________, 2019 CITY OF MUSKEGON
By________________________
Ann Marie Meisch, MMC
City Clerk
------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
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CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
ORDINANCE NO. ____
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
1. Chapter 10, Article III, Division 2, Subdivision II of the Code of Ordinances of
the City of Muskegon, Michigan, Section 10-107(b)(2) is being amended to read
as follows:
(2) Applicability. The requirements of this section shall be applicable to each
owner of any building that is not a dwelling that shall have been vacant for more
than 90 consecutive days and to each owner of residential property consisting of
one or more vacant dwellings that shall have been vacant for more than 90
consecutive days, unless the dwelling is a seasonal home. All seasonal homes
must be registered with the Department of Public Safety. Each such owner shall
cause to be filed a registration statement, which shall include the street address
and parcel number of each such vacant building, the names and addresses of all
owners, as hereinafter described, and any other information deemed necessary by
the city. The registration fees as required by subsection (b)(3) of this section shall
be billed annually by the city and shall be paid within 30 days of the invoice date.
For purposes of this section, the following shall also be applicable:
a. If the owner is a corporation or a limited liability corporation, the
registration statement shall provide the names and residence addresses
of all officers, directors and/or members and shall be accompanied by
a copy of the most recent annual tax report filed with the state;
b. If an estate, the name and business address of the executor of the
estate;
c. If a trust, the name and address of all trustees, grantors, and
beneficiaries;
d. If a partnership, the names and residence addresses of all partners with
an interest of ten percent or greater;
e. If any other form of unincorporated association, the names and
residence addresses of all principals with an interest of ten percent or
greater;
f. If an individual person, the name and residence address of that
individual person.
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2. Chapter 10, Article III, Division 2, Subdivision II of the Code of Ordinances of
the City of Muskegon, Michigan, Section 10-107(b)(3) is being amended to read
as follows:
(3) Registration statement and fees; local agent. If none of the persons listed,
as above, are shown at an address within the state or the home is a qualified
vacation home or seasonal residence, the registration statement also shall provide
the name and address of a person who resides within the state and who is
authorized to accept service of process on behalf of the owners and who shall be
designated as a responsible, local part or agent, both for purposes of notification
in the event of an emergency affecting the public health, safety or welfare and for
purposes of service of any and all notices or registration statements as herein
authorized and in connection herewith. Registration shall be required for all
vacant buildings, whether vacant and secure, vacant and open or vacant and
boarded, and shall be required whenever any building has remained vacant for 90
consecutive days or more, except in the case of seasonal homes. All seasonal
homes must be registered with the Department of Public Safety. In no instance
shall the registration of a vacant building and the payment of registration fees be
construed to exonerate the owner, agent or responsible party from responsibility
for compliance with any other state construction code requirement. The owner of
the vacant property, at the time of billing, shall be responsible for the payment of
the nonrefundable registration fee. Said fee shall be billed annually by the city
and based on the duration of the vacancy as determined by the master fee
resolution.
3. Chapter 10, Article III, Division 2, Subdivision II of the Code of Ordinances of
the City of Muskegon, Michigan, Section 10-107(b)(5) is being amended to read
as follows:
(5) Waiver of registration fee. A one-time waiver of the registration fee may
be granted by the committee appointed by the city manager upon application of
the owner, if all taxes and fees, such as, but not limited to, property taxes, mowing
charges, past vacant building registration fees, landlord registrations, business
registrations, utilities and any other applicable charges, have been paid prior to
application for the waiver. If the owner:
a. Demonstrates with satisfactory proof that he is in the process of demolition,
rehabilitation, or other substantial repair of the vacant building; and
b. Objectively demonstrates the anticipated length of time for the demolition,
rehabilitation, or other substantial repair of the vacant building, or
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c. Provides satisfactory proof, such as sales contract with realtor, advertisement
for sale, etc., that he was actively attempting to sell or lease the property
during the vacancy period.
Upon the issuance of a certificate of occupancy, the committee appointed by the City
Manager may waive vacant building fees attributable to a prior owner if the certificate of
occupancy is issued within 12 months of the applicant’s acquisition of ownership. The
Committee may waive up to ______ years of vacant building registration fees. All other
taxes and fees must be paid in full prior to the application being considered.
4. Chapter 10, Article III, Division 2, Subdivision II of the Code of Ordinances of
the City of Muskegon, Michigan, Section 10-107(b)(7)(e) is being amended to
read as follows:
(e) Violations; penalties. The failure or refusal for any reason of any owner or agent
of an owner acting on behalf of the owner to register a vacant building within 30 days
the registration is due shall constitute a violation punishable upon conviction thereof
by a fine in the amount of not less than $100.00 not more than $500.00 for each
failure or refusal to register. In such cases, whenever the minimum fine of $100.00 is
imposed, it shall not be subject to suspension or reduction for any reason.
5 This Ordinance is to become effective ten (10) days after adoption.
Ayes:
Nays:
First Reading:
Second Reading:
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CERTIFICATE
The undersigned, being the duly qualified Clerk of the City of Muskegon,
Muskegon County, Michigan, does hereby certify that the foregoing is a true and
complete copy of an ordinance adopted by the City Commission of the City of
Muskegon, at a regular meeting of the City Commission on the ____ day of
_______________, 2019, at which meeting a quorum was present and remained
throughout, and that the meeting was conducted and public notice was given pursuant to
and in full compliance with Act No. 267, Public Acts of Michigan of 1976, as amended,
and that minutes were kept and will be or have been made available as required thereby.
Date:_______________________, 2019
________________________________
Ann Marie Meisch, MMC
City Clerk
Publish: Notice of Adoption to be published once within ten (10) days of final
adoption.
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CITY OF MUSKEGON
NOTICE OF ADOPTION
TO: ALL PERSONS INTERESTED
Please take notice that on ___________________, 2019, the City Commission of
the City of Muskegon amended Chapter 10, Article III, Section 10-107 summarized as
follows:
1. Require seasonal homes to be registered with the Public Safety Division
2. Allow additional circumstances for waiving vacant building fees
3. Eliminate additional fees being applied when registration fees are not paid
Copies of the ordinance may be viewed and purchased at reasonable cost at the
Office of the City Clerk in the City Hall, 933 Terrace Street, Muskegon, Michigan,
during regular business hours.
This ordinance amendment is effective ten (10) days from the date of this
publication.
Published: _________________, 2019 CITY OF MUSKEGON
By________________________
Ann Marie Meisch, MMC
City Clerk
------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
O:\CLERK\Common\Word\Commission Worksession\2019\090919\vacant building ordinance amendment with NO
markup.DOC 5
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 10, 2019 Title: LC Walker Restroom Renovation
Submitted By: Frank Peterson Department: City Manager
Brief Summary:
City staff is requesting approval of the attached proposal to undertake significant upgrades to the arena
restrooms. The upgrades will include relocating the Western Avenue restrooms to the alley-side of the
concourse.
Detailed Summary:
As part of our effort to better-utilize the LC Walker Arena’s Western Avenue frontage, we are relocating the
restrooms to the alley side of the building. The DDA completed a $1 Million transfer to the Public
Improvement Fund in FY 18-19; $250,000 was allocated to the restroom relocation. All costs above
$250,000 will be absorbed by the Public Improvement Fund.
Staff receive two bids for this project; which included construction of the new restaurant along Western
Ave. Platinum Contracting submitted the lowest bid. Platinum’s Bid of $407,767.66 was 46% less than A.J.
Veneklasen’s bid of $763,250.00.
Platinum’s original bid allocated $233,214.07 to the restroom portion of the project. After a number of
changes to the construction scheduling and finishes/products, we settled on a project cost of $246,925.92.
Staff is requesting a 15% contingency and soft cost budget (unforeseen changes, architect, etc.).
Amount Requested: $284,000 Amount Budgeted: $250,000
Fund(s) or Account(s): Public Improvement Fund(s) or Account(s): Public Improvement
Recommended Motion: Accept the Bid from Platinum Construction in the amount of $246,925.92 and
further authorize a contingency and soft-costs budget for the project equal to 15% of construction costs,
with a total project not to exceed amount of $284,000.
For City Clerk Use Only:
Commission Action:
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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 9/10/2019 Title: AmeriBank RFP Recommendation
Submitted By: Jake Eckholm Department: Economic Development
Brief Summary: Staff has reviewed proposals from developers for 880 First Street and have
selected a preferred developer in 880 First Street, LLC, a partnership of Ferguson Development
and Brianna Scott.
Detailed Summary: See attached memo
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): N/A Fund(s) or Account(s): N/A
Recommended Motion: To endorse the development proposal submitted by 880 First Street, LLC
and allow staff to negotiate and execute a development agreement.
For City Clerk Use Only:
Commission Action:
City of Muskegon Economic
Development Department
Memo
To: Frank Peterson, City Manager
From: Jake Eckholm, Director of Economic Development
cc: LeighAnn Mikesell, Director of Development Services
Date: 8/22/2019
Re: 880 First Street RFP Responses
The City of Muskegon has received two (2) responses to our Request for Proposals regarding a
mixed use development featuring commercial lower floors with upper floor housing at 880 First
Street, commonly known as the AmeriBank Building. We specifically avoided a sale price
component to the RFP, as it would potentially complicate/discourage preliminary responses.
After reviewing the applications pursuant to the Evaluation Criteria stated in the RFP, I offer the
following findings for your consideration.
- Samaritas submitted a very well detailed proposal that is contingent on the award of
Low Income Housing Tax Credits, or LIHTC. This LIHTC proposal includes the
rehabilitation of the existing structure, the expansion and addition of the existing rear
annex from one story to three stories, and the buildout of a pitched roof connected
townhome structure. The 53 units proposed in the development would be reserved for
income restricted applicants of 55 and older, with 10 units for 30% Area Median Income
applicants (AMI), 9 units at 40%, 19 units at 60%, and 15 units at 80% AMI. All of the
units would be one-bedroom, with a top rental threshold of $917/month. The design
features exhibited in the drawing are limited, but it does feature a commercial leasable
office space to fulfill the mixed use requirement in the RFP. The developers reference
marketing this space to a service oriented business that would benefit the older
population living in the building such as banking, insurance, tax services, etc. They also
mentioned the possibility that they could move their existing Samaritas office from the
Frauenthal Center into this space.
- Ferguson Development/Brianna Scott submitted a proposal through a newly formed,
project specific LLC with Joel Ferguson and Brianna Scott as owners. This proposal
calls for a market rate housing development at the existing site with two development
scenarios pending the opportunity to conduct a construction analysis and other due
diligence. The two scenarios have the same vision for the development, and simply differ
as to whether or not the existing structure will be rehabbed and incorporated into the
project or demolished and removed to make way for new construction. The concept
vision calls for a commercial first floor that will activate the block with an aesthetic and
accessible street wall, and the development proposal contains two letters of intent for
these commercial spaces. One LOI is for a bar/restaurant development that would be
owned and operated by the Potent Potables Project, a conglomerate of Lansing area
restauranteurs, and the other is for an event space. This development does not commit
to a specific number of units, rather calls for a market study to determine number, size,
and amenities of units to accommodate what the downtown housing climate will support.
It does specifically commit to 3 to 4 floors of multifamily housing.
Based on the criteria set forth in the Request for Proposals, staff is recommending Ferguson
Development/Brianna Scott’s response as the developer to be engaged by the city. Their
rendering was more complete, their financials and project team composition was more in depth
and detailed, and crucially, they approached the project with the appropriate amount of due
diligence built in. This is a buildout concept that has already proven difficult for two other
developers, and their request for the ability to conduct construction analysis and market study
reflects a strong background in commercial housing development. They also featured a more
robust commercial portion of their mixed-use proposal, which will better serve to “activate” the
corridor as highlighted in the City’s RFP.
In addition to these factors, we have had some discussions with the community and internally as
staff regarding increased diversity in the downtown area. 880 First LLC, the project specific
company that will own and develop this project is a completely minority-owned business, and is
50% woman owned. By selecting this developer, we afford an opportunity for a local developer
that will help move us towards a goal of increasing diversity of ownership in the community.
Respectfully,
Jake Eckholm
Director of Economic Development
2
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: September 10, 2019 Title: PILOT, Samaritas
Submitted By: Mike Franzak Department: Planning
Brief Summary: Samaritas is proposing an affordable housing development at 4 W Webster Ave and
is requesting a Payment in Lieu of Taxes (PILOT) for the project. The development will include 53
residential for seniors and a 900 square foot commercial space on the first floor. A service charge
of 4% will be imposed, as well as a municipal services fee of 2%.
Detailed Summary: There will be 53 one-bedroom units. Income targeting is based on 10
units at 30% AMI (Area Median Income); 9 units at 40% AMI; 1 unit at 50% AMI, 17 units
at 60% AMI; and 16 units at 80% AMI. The project will have eight project-based vouchers
for residents age 55 and over.
Amount Requested: Amount Budgeted:
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: To approve the Contract for Housing Exemption and the Municipal
Services Agreement with Samaritas and to authorize the Mayor and Clerk to sign both.
For City Clerk Use Only:
Commission Action:
August 24, 2019
Muskegon City Commission
933 Terrace St
Muskegon, Michigan 49440
Attn: Mike Franzak, Planning Director and Frank Peterson, City Manager
Re: Request to the City of Muskegon for a 20 Year, 4% PILOT (Service Charge in Lieu of
Ad Valorem Property Tax) to facilitate the award of Tax Credits
To the Muskegon City Commission:
Samaritas, a leading human service and housing provider, is working to create the Samaritas
Affordable Living (SAL) Muskegon project. This project will be owned and operated by
Samaritas Affordable Living Muskegon Limited Dividend Housing Association, Limited
Partnership. SAL Muskegon will provide 53 desirable new units of housing for seniors on part
of a key infill site at 4 West Webster Avenue in the city of Muskegon. The four-story building, a
few blocks from downtown Muskegon, will support and compliment the city’s revitalization
efforts that began several years ago. The project adds 53 needed units for aging residents
seeking a convenient location to remain active in the community.
The SAL Muskegon site offers numerous amenities. It is located within a commercial district
which provides retail, services, and restaurants. There is a public transportation stop on the
northeast corner of the parcel. The site enjoys proximity to a full-service pharmacy, museums,
multiple parks, and several churches. The location allows residents to enjoy various features and
attractions in the downtown area, such as the Muskegon Farmers Market, LC Walker Arena, and
the shopping and dining district on Western Avenue.
The project helps to address the lack of housing in the transition area between the downtown and
the outlying areas of the Muskegon. As an infill rental project, SAL Muskegon will fit into the
existing area in terms of scale, building mass, and design. The surface parking area will provide
twenty-eight spaces on the site and at least twelve spaces along the streets adjacent to the
building. Residents can take advantage of available public transportation or para-transit
opportunities as well as pedestrian and bicycle options. There is a bus stop on one corner of the
site and the main bus terminal is only four blocks away.
SAL Muskegon will be financed with equity from the sale of Low Income Housing Tax Credits,
a permanent mortgage, a sponsor loan, and a portion of the developer fee will be deferred with
repayment over thirteen years.
1
The SAL Muskegon project is located within an Opportunity Zone census tract and is expected
to create at least two ongoing jobs and at least 43 temporary jobs during the construction period
based on projects of similar size and scope. The commercial area will create space for three
ongoing office jobs.
Samaritas has designed the project specifically for seniors, ages 55 and over. Some of them may
be working in local retail, service, restaurant, or commercial businesses and want easy access to
their place of employment, along with entertainment in the vicinity. Some individuals may want
to downsize and simplify their lives. Some may not have enough income to maintain a single-
family home. They may have experienced a life changing event such as divorce, death of a
spouse, physical disability or chronic illness. They may spend a large amount of their income on
health insurance, care, rehabilitation and medication. The SAL Muskegon project will provide
housing for these residents and will also include shared community space to meet the need for
socializing. By providing a high-quality, attractive independent living option for seniors in an
affordable price range, the SAL Muskegon project will have a positive impact on the housing
market in the City of Muskegon.
Samaritas is already significantly involved in serving the Muskegon area by managing one senior
living project, Christian Manor at 1480 McLaughlin, operating five facilities for persons with
disabilities, providing Foster Care and Family Reunification Services, and having a corporate
office located at the Frauenthal Center in downtown Muskegon.
To discuss the possibilities of this request, please contact James Gilbert, Executive Director of
Business Development at 313-308-8833 or by e-mail at jgilb@samaritas.org. We are familiar
with a potential requirement for an MSA in conjunction with the PILOT and we can discuss our
capabilities for that based on our projected operating pro-forma.
The Samaritas development team thanks you for your consideration of our PILOT request which
is a key component to being awarded by MSHDA in the competition for Low Income Housing
Tax Credits and being able to completely finance the proposed project. We hope to continue to
serve the Muskegon community and to create a new housing project that we can all be proud of.
Sincerely,
Sam Beals
Chief Executive Officer
Samaritas
2000 32nd Street, SE
Grand Rapids, Michigan, 49508
(616) 204-4330
2
About Samaritas:
Samaritas, one of the state’s largest faith-based nonprofits, has been sending ripples of positive
change into Michigan communities since 1934. Samaritas serves people of all ages and
backgrounds including providing resettlement services for New Americans, adoption and foster
care, and at-home services, and residential communities for seniors and persons with disabilities,
through assisted living, skilled nursing and memory care. Affordable living residential
communities also are available for independent seniors, families and persons with disabilities.
More than safe harbor in crisis, Samaritas comes through, when others don’t, with a path home.
Samaritas connects all people based on their individual circumstances with the families and
communities that will empower them to live their fullest life possible. Potential fulfilled, those
served then promote the dignity of others, launching into the community an unending ripple
effect of transformation.
For additional information, visit www.samaritas.org.
Qualifications and Experience
Development Team members for this project will include:
Samaritas – Managing General Partner, Developer, Non-profit Sponsor and Management Agent
Schneider + Smith Architects - Architect
Pinnacle Construction Group, Inc. – West Michigan based General Contractor
KMG Prestige – Compliance Manager
Capital for Compassion – West Michigan based Housing Consultant
Samaritas is the Sponsor/Developer of the project. Samaritas, formerly known as Lutheran
Social Services, is an experienced nonprofit developer with locations throughout Michigan
including ownership in three LIHTC properties, five multifamily developments with HUD
financing, and management of six additional independent living HUD properties. Samaritas also
owns and operates five senior living campuses throughout the state that offer independent living,
assisted living, skilled nursing or memory care. Samaritas has been providing social services in
the City of Muskegon and Muskegon County for over forty years. Samaritas will be involved in
all aspects of the project’s development and operations. Samaritas has a successful and proven
track records with both MSHDA and HUD and will provide a strong and experienced ownership
team to provide quality housing. Samaritas has offices in downtown Muskegon at the Frauenthal
Center. The Samaritas Director of Affordable Housing leases an office in that building.
3
Project Site and Unit Description
The SAL Muskegon site includes a vacant area on the northeast side of the parcel at 4 West
Webster Avenue, along with fourteen parking spaces in a recently constructed adjacent parking
lot. Three of the edges of the site are bound by West Clay Avenue, Spring Street, and West
Webster Avenue. The site is used efficiently to provide a four-story elevator building with
surface parking. The first floor includes the entrance vestibule, community room, reception area,
management office, public restrooms and mail/package area. To meet the desire for active
ground floor space, the building is designed with a large common area on the first floor with
views to the street and 804 SF of commercial office space which will be leased to Samaritas.
The first floor includes eleven units. Floors two through four each include fourteen units and a
laundry room. The 53 one-bedroom apartments each measure 700 square feet.
The project will have eight project-based vouchers for residents age 55 and over. Rents will be
based on income, with six units at 30% of Area Median Income (AMI), nine units at 40% of
AMI, fourteen units at 60% of AMI, and sixteen units at 80% of AMI. Muskegon County has
one-person income limits ranging from $12,840 at 30% of AMI to $34,240 at 80% of AMI. The
current rent limit for a one-bedroom unit at 80% of AMI is $917 per month.
Project amenities include energy efficient construction and Energy Star rated appliances
including dishwasher, garbage disposal, electric stove with self-cleaning oven and frost-free
refrigerator; wall to wall carpeting in both the living room and bedroom; walk-in closet; in-unit
heating/cooling system with individually controlled thermostat. There is an outdoor patio with
privacy screening. The first floor includes a computer/business center, a library, and a coffee bar
in the community room.
The site will provide independent living. However, Samaritas will help to provide outside
services that facilitate the health and well-being of all residents. Samaritas is one of the largest
service providers to elderly residents in the state of Michigan. Although this is not permanent
supportive housing, Samaritas will have staff on site and will work directly with residents on
housing and life issues and will help locate outside resources within the community to assist
residents, enabling them to maintain their independence.
4
Location Maps
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Site Plan
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MUNICIPAL SERVICES AGREEMENT
THIS MUNICIPAL SERVICES AGREEMENT (“Agreement”) is entered into on this
___
10th day of September, 2019 between SAMARITAS AFFORDABLE LIVING
MUSKEGON LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED
PARTNERSHIP, a Michigan limited partnership its successors and/or assigns (the
“Developer”) and the CITY OF MUSKEGON, 933 Terrace Street, Muskegon, MI 49440
(the “City”) is made pursuant to the following terms:
RECITALS
A. Developer has assumed an agreement to purchase a site in the City of Muskegon
known as 4 W. Webster for the construction of a proposed low-income housing project (the
“Project”).
B. The parties recognize that due to the high concentration of persons residing
at the Project that the City will be providing a higher level and greater amount of Municipal
Services (as defined in this Agreement) to the Project.
C. The City, through its Police and Fire Departments and otherwise, provides
Municipal Services within the City. The Project will have special needs for these types of
Municipal Services and Developer acknowledges that such needs may be greater than
typically situated residential developments.
D. The Developer desires to guarantee that certain Municipal Services will be provided
to the Project during the term that the Payment in Lieu of Tax (hereinafter referred to as the
“Contract for Housing Exemption”) Ordinance for this Project is in place, such Municipal Services
to include, but not be limited to:
1. Emergency services, including police and fire services specifically administered
through the City, and, on public streets and sidewalks, maintenance, repair, snow removal,
and street lighting; also to include other matters as the City deems necessary;
2. Other miscellaneous services as may, from time to time, be mutually agreed to for
the benefit of the Project;
3. Said municipal services shall be provided in the customary way and in accordance
with all laws, rules and regulations of the United States of America, State of Michigan,
County of Muskegon and City of Muskegon or other applicable jurisdictions or bodies.
(All of the above collectively referred to as “Municipal Services”)
4. Nothing in this Agreement shall be deemed to waive any defense to claims based
on sovereign or governmental immunity.
AGREEMENT
The parties agree as follows:
1. Provision of Services. The City will provide the Municipal Services.
2. Payment. The Developer shall pay a service charge on or before July 1, of each
year during the time the CONTRACT FOR HOUSING EXEMPTION is in effect. (“Municipal
Services Fee”). The Municipal Service Fee shall be two (2%) percent of the net rent received
annually, excluding project paid utilities, starting during the calendar year that a unit in the Project
is placed in service. The first year shall be pro-rated based on that portion of the City’s fiscal year
(July 1 – June 30) that any unit is ready to be placed in service.
3. Term. Payment for Municipal Services shall commence during the calendar year
the CONTRACT FOR HOUSING EXEMPTION Ordinance becomes effective and continue for
as long as the CONTRACT FOR HOUSING EXEMPTION is in effect.
4. Audit. Developer shall submit, upon request, a copy of the annual audit of the
Project prepared by independent CPA’s along with the payment of the service charge.
5. Exclusive Benefit. The obligations of the Developer hereunder are imposed
solely and exclusively for the benefit of the City and no other person or entity shall have the
standing to enforce such obligations or be deemed to be beneficiaries of such obligations.
6. Remedies. The Developer agrees that if it does not perform its obligations under
this Agreement the City is entitled to pursue any and all remedies legal or equitable that it is entitled
to under Michigan law. The Developer agrees to be liable for all costs of collection including
reasonable attorney's fees and costs incurred by the City in the enforcement of the terms of this
Agreement, if Developer is found to be in default of this Agreement by a court of competent
jurisdiction.
7. Assignment. Upon the written consent of the City, the Developer may transfer or
assign its rights and obligations under this Agreement to a buyer (“Transferee”) of the Project.
The Transferee must agree to assume the Developer’s obligations under this Agreement and the
Development Agreement which has been executed by the Developer with the City. Upon
assignment and assumption of this Agreement by the Transferee (or an affiliate, as provided
below), the Developer shall be relieved of any further liabilities or obligations accruing under this
Agreement or the Development Agreement. Notwithstanding the foregoing, the Developer may
assign this Agreement, without the written consent of the City, to an affiliate of Developer
(provided that such affiliate agrees to assume the Developer's obligations hereunder and provided
that the Developer and assignee give prior notice of the assignment to the City with evidence that
the assignee has agreed to assume the obligations of the Developer).
8. Severability. If any term or condition of this Agreement is found to be void,
invalid, or unenforceable, the validity or enforceability of the remaining terms and conditions shall
not be affected or impaired and will continue in full force and effect.
9. Notices. All notices under this Agreement must be in writing and sent to the
respective parties as follows:
If to Developer:
SAMARITAS AFFORDABLE LIVING MUSKEGON LIMITED DIVIDEND
HOUSING ASSOCIATION LIMITED PARTNERSHIP
Attn: Sam Beals, CEO
Samaritas
8131 E. Jefferson
Detroit, MI 48185
with a copy to:
Matt B.Van Dyk, Attorney at Law
Miller Johnson
100 W. Michigan Ave., Suite 200
Kalamazoo, MI 49007
If to the City:
City of Muskegon
Attn: City Manager
933 Terrace Street
Muskegon, MI 49440
Every notice must be in writing and sent by one of the following methods:
a. Personal delivery, in which case delivery shall be deemed to occur the day of the
delivery;
b. Certified or registered mail, postage prepaid, return receipt requested, in which case
delivery shall be deemed to occur the day it is officially recorded by the U.S. Postal Service
that is has delivered it to the intended recipient; or
c. Next day delivery by a recognized private delivery service such as Federal Express,
providing proof of mailing and delivery comparable to certified or registered mail, return
receipt requested, in which case delivery shall be deemed to occur upon delivery as
recorded by the delivery service.
Either party may change the address provided in this paragraph for itself or its attorney by
providing notice of such change to the other party as required in this paragraph.
10. No Waiver. No delay, omission, or failure of the City to act under this Agreement
or to insist upon strict compliance with any term and condition of this Agreement, and no custom
or practice of the parties at variance with the terms and conditions of this Agreement shall
constitute a wavier of City’s right to demand exact compliance with this Agreement. No waiver
of any right or remedy of City shall be construed as a bar to or a waiver of any such right or
remedy on any future occasion.
11. Headings. The headings in this Agreement have only been inserted for
convenience and shall not affect the meaning or interpretation of this Agreement. No heading
shall have any legal significance of any nature whatsoever.
12. Binding Effect. This Agreement shall be binding on the parties, their heirs,
successors, and assigns.
13. Amendments. There shall be no modification or amendments to this Agreement,
including this section, unless they are in writing and signed by all of the parties to this Agreement.
14. Governing Law. This Agreement has been executed in the State of Michigan, and
shall be governed by Michigan law.
15. Complete Agreement. This Agreement contains the entire agreement between
the parties and supersedes all prior oral or written representations, negotiations and agreement on
the subject matter stated herein.
{Signatures on next page}
Municipal Services Agreement
Signature Page
IN WITNESS WHEREOF, this Municipal Services Agreement is executed as of the day and year
first written above.
City of Muskegon
Dated: September ___, 2019 By:_______________________
Stephen J. Gawron, Mayor
Dated: September ___, 2019 By: ______________________
Ann Meisch, City Clerk
SAMARITAS AFFORDABLE LIVING
MUSKEGON LIMITED DIVIDEND HOUSING
ASSOCIATION LIMITED PARTNERSHIP, a
Michigan limited partnership
By:
SAMARITAS AFFORDABLE LIVING
MUSKEGON GP, LLC a Michigan limited liability
company
By: SAMARITAS,
a Michigan non-profit corporation,
Sole Member
______________________________
Name: Sam Beals
Its: CEO
Date: _______________
9/5/2019
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