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CITY OF MUSKEGON
CITY COMMISSION MEETING
OCTOBER 9, 2012
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
CALL TO ORDER:
PRAYER:
PLEDGE OF ALLEGIANCE:
ROLL CALL:
HONORS AND AWARDS:
INTRODUCTIONS/PRESENTATION:
CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. MLive Agreement. CITY CLERK
C. Acceptance of Fair Housing Impediment Study. COMMUNITY &
NEIGHBORHOOD SERVICES
D. Harbour Towne Condominium Acquisition and Sale. CITY MANAGER
E. Eliminate On-Street Parking Prohibition During Winter Months. CITY
MANAGER
PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – Johnson
Technology. PLANNING & ECONOMIC DEVELOPMENT
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
NEW BUSINESS:
A. Water Agreement with City of Norton Shores and Fruitport Charter
Township. CITY MANAGER
B. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish 1692 Elwood. PUBLIC SAFETY
ANY OTHER BUSINESS:
PUBLIC PARTICIPATION:
Reminder: Individuals who would like to address the City Commission shall do the following:
Fill out a request to speak form attached to the agenda or located in the back of the room.
Submit the form to the City Clerk.
Be recognized by the Chair.
Step forward to the microphone.
State name and address.
Limit of 3 minutes to address the Commission.
(Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
CLOSED SESSION:
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 Cummings, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or
TTY/TDD dial 7-1-1 to request a representative to dial (231) 724-6705.
Date: October 9, 2012
To: Honorable Mayor and City Commissioners
From: Ann Marie Cummings, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes of the September 25th
City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 25, 2012
CITY COMMISSION CHAMBERS @ 5:30 P.M.
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, September 25, 2012.
Mayor Gawron opened the meeting with a prayer from Mr. George Monroe
from Evanston Avenue Baptist Church after which the Commission and public
recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Gawron, Vice Mayor Lawrence Spataro,
Commissioners Byron Turnquist, Lea Markowski, Eric Hood, Willie German, and
Sue Wierengo, City Manager Bryon Mazade, City Attorney John Schrier, and City
Clerk Ann Marie Cummings.
2012-71 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the September 10th Commission
Worksession Meeting and the September 11th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Youth Basketball League and Open Gym Proposal – Muskegon Public
Schools. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The City of Muskegon has contracted with the
Muskegon Public Schools for the management of the Youth Basketball League
and Open Gym since 2010. The program has been successful and the Schools
would like to manage the program for the 2012-2013 school year. The
Commission is requested to approve the proposal and authorize staff to enter
into an agreement with the Schools for oversight of the basketball program and
the Open Gym program.
FINANCIAL IMPACT: The cost for the program is $18,500 (which has not changed
since 2010).
1
BUDGET ACTION REQUIRED: Funds are available through the Leisure Services
budget.
STAFF RECOMMENDATION: To approve the “Youth Basketball League and Open
Gym Proposal” and authorize staff to enter into a formal agreement with the
Schools.
C. Consideration of Bids for: B-247 City Hall Parking Lots (Jefferson Street)
and Department of Public Works Lot. ENGINEERING
SUMMARY OF REQUEST: Award the construction contract to repave the City
parking lots (Employee, visitors side, MPD, and DPW lots) to Asphalt Paving, Inc.
out of Muskegon, MI. Asphalt Paving is the lowest responsible bidder for this
project with a total bid price of $148,194.12.
FINANCIAL IMPACT: The construction cost of $148,194.12 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: None at this time as this project appears on the
2012-13 budget.
STAFF RECOMMENDATION: Award the contract to Asphalt Paving, Inc.
D. Masonry Services for 1500 Leahy House Repairs. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To accept the bid by the only proposal received: Andy
Hofstra, 6420 Lake Harbor Road, Muskegon, MI for the structural repairs needed
for the rehabilitation of 1500 Leahy Street.
The home will be rehabilitated with NSP 1 funds; and at completion, the home
will be sold to a qualified buyer with income up to 120% AMI.
FINANCIAL IMPACT: The funding for the repairs is budgeted from NSP 1, and if
necessary a portion of 2012 HOME funds will be used as leverage.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request.
Motion by Vice Mayor Spataro, second by Commissioner German to approve
the Consent Agenda as read.
ROLL CALL: Ayes: Markowski, Gawron, Hood, Spataro, German, Wierengo, and
Turnquist
Nays: None
MOTION PASSES
2012-72 PUBLIC HEARINGS:
A. Request for Exemption of New Personal Property (PA 328) – Alloy
Resources Corp. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 328 of 1998, as amended,
2
Alloy Resources Corp., 2281 Port City Blvd., has requested an exemption of new
personal property. The company plans on investing $3,100,000 in machinery
and equipment and is seeking a 12-year exemption on personal property. The
exemption would include all new personal property investments during the
duration of the exemption.
FINANCIAL IMPACT: The City will forgo 100% of the personal property taxes for
the length of the abatement.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the exemption of new personal
property for a duration of 12 years.
The Public Hearing opened to hear and consider any comments from the
public. Mr. Bruce John Essex, Jr., 1985 E. Laketon, President, explained the
request.
Motion by Commissioner Wierengo, second by Commissioner Hood to close the
Public Hearing and approve the exemption of new personal property for a
duration of 12 years for Alloy Resources Corp.
ROLL VOTE: Ayes: Hood, Spataro, German, Wierengo, Turnquist, Markowski, and
Gawron
Nays: None
MOTION PASSES
B. Request for Exemption of New Personal Property (PA 328) – Engineered
Aluminum Castings, Inc. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 328 of 1998, as amended,
Engineered Aluminum Castings, Inc., 2121 Latimer Dr., has requested an
exemption of new personal property. The company plans on investing
$7,000,000 in machinery and equipment and is seeking a 12-year exemption on
personal property. The exemption would include all new personal property
investments during the duration of the exemption.
FINANCIAL IMPACT: The City will forgo 100% of the personal property taxes for
the length of the abatement.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the exemption of new personal
property for a duration of 12 years.
The Public Hearing opened to hear and consider any comments from the
public. No comments were made.
Motion by Commissioner Hood, second by Commissioner German to close the
Public Hearing and approve the exemption of new personal property for a
duration of 12 years for Engineered Aluminum Castings, Inc.
3
ROLL VOTE: Ayes: German, Wierengo, Turnquist, Markowski, Gawron, Hood, and
Spataro
Nays: None
MOTION PASSES
C. Request for an Industrial Facilities Exemption Certificate – Engineered
Aluminum Castings, Inc. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended,
Engineered Aluminum Castings, Inc., 2121 Latimer Dr., has requested the
issuance of an Industrial Facilities Tax Exemption Certificate. The total capital
investment will be $738,000 in real property and will create two jobs. This
qualifies them for a tax abatement of 12 years.
FINANCIAL IMPACT: The City will capture certain additional property taxes
generated by the expansion.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of 12 years for real property.
The Public Hearing opened to hear and consider any comments from the
public. No comments were made.
Motion by Commissioner Wierengo, second by Vice Mayor Spataro to close the
Public Hearing and approve the resolution granting an Industrial Facilities
Exemption Certificate for a term of 12 years for real property for Engineered
Aluminum Castings, Inc.
ROLL VOTE: Ayes: Turnquist, Markowski, Gawron, Hood, Spataro, German, and
Wierengo
Nays: None
MOTION PASSES
D. Request for an Industrial Facilities Exemption Certificate – Muskegon
Castings Corp. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended,
Muskegon Castings Corp., 2325 S. Sheridan Rd., has requested the issuance of
an Industrial Facilities Tax Exemption Certificate. The total capital investment will
be $501,000 in real property and will create 10 jobs. This qualifies them for a tax
abatement of 12 years.
FINANCIAL IMPACT: The City will capture certain additional property taxes
generated by the expansion.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
4
Facilities Exemption Certificate for a term of 12 years for real property.
The Public Hearing opened to hear and consider any comments from the
public. No comments were made.
Motion by Commissioner Wierengo, second by Vice Mayor Spataro to close the
Public Hearing and approve the resolution granting an Industrial Facilities
Exemption Certificate for a term of 12 years for real property for Muskegon
Castings Corp.
ROLL VOTE: Ayes: Gawron, Hood, Spataro, German, Wierengo, Turnquist, and
Markowski
Nays: None
MOTION PASSES
2012-73 NEW BUSINESS:
A. 2013 National League of Cities Membership Dues. CITY CLERK
SUMMARY OF REQUEST: The 2013 National League of Cities Membership
Renewal Notice has been received.
FINANCIAL IMPACT: $3,258.
BUDGET ACTION REQUIRED: This has not been budgeted for.
STAFF RECOMMENDATION: None.
Motion by Vice Mayor Spataro, second by Commissioner Turnquist to not spend
the money to pay the membership dues to the National League of Cities for
2013.
ROLL VOTE: Ayes: Spataro, German, Wierengo, Turnquist, Markowski, Gawron,
and Hood
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:15 p.m.
Respectfully submitted,
Ann Marie Cummings, MMC
City Clerk
5
Date: October 9, 2012
To: Honorable Mayor and City Commissioners
From: City Clerk’s Office
RE: MLive Agreement
SUMMARY OF REQUEST: The City is required by law to place legal ads in a
newspaper with the largest circulation in the area.
MLive has offered an agreement that will lower our current rate of $3.30 per line to
$2.02 - $2.97 depending on the size of the ad. There is no stipulation as to the
amount of ads that need to be placed each year for the discounted rate.
FINANCIAL IMPACT: The City will incur a reduction in advertising/legal costs.
STAFF RECOMMENDATION: To accept the agreement and authorize the Mayor
to sign.
AGENDA ITEM NO. ______________
CITY COMMISSION MEETING _____________________
TO: Honorable Mayor and City Commissioners
FROM: Bryon L. Mazade, City Manager
DATE: October 3, 2012
RE: Harbour Towne Condominium Acquisition and Sale
SUMMARY OF REQUEST:
To authorize the acquisition of Harbour Towne Condominium units 253 and 254 through tax
foreclosure and to sell them to the Harbour Towne Condominium Association for the unpaid tax
amounts.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the necessary transactions and authorize the Mayor and City Clerk to execute
necessary documents.
COMMITTEE RECOMMENDATION:
None.
pb\AGENDA\HARB TWN CONDO ACQ & SALE 100312
AGENDA ITEM NO. ______________
CITY COMMISSION MEETING _____________________
TO: Honorable Mayor and City Commissioners
FROM: Bryon L. Mazade, City Manager
DATE: October 3, 2012
RE: Eliminate On-Street Parking Prohibition During Winter Months
SUMMARY OF REQUEST:
To amend Chapter 92, Article II, of the Code of Ordinances of the City of Muskegon to repeal
Section 8.31, which prohibited parking on the street between 2:00 a.m. and 6:00 a.m. on any
day between the dates of November 15 and April 15 or any other time when snow removal is
necessary.
FINANCIAL IMPACT:
None.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the ordinance amendment.
COMMITTEE RECOMMENDATION:
None.
pb\AGENDA\ELIM ON-ST PRK PRHBTN WNTR MNTHS 100312
City of Muskegon
Muskegon County, Michigan
Ordinance Amendment No. _____
THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY ORDAINS:
1. Chapter 92, Article II of the Code of Ordinances of the City of Muskegon is
amended to read as follows:
(2.2) Level 2 parking violations, under the following sections of the uniform traffic code:
Code Section Offense
8.5 Parking so as to obstruct traffic
8.10(a) Parking on sidewalk
8.10(b) Blocking driveways
8.10(c) Within an intersection
8.10(e) In a crosswalk
8.10(f) Within 20 feet of a crosswalk or within 15 feet of property lines at
intersection
8.10(g) Too close to a flashing beacon, stop sign, yield sign, traffic control signal,
or other traffic sign
8.10(h) In a safety zone
8.10(i) Too close to railroad
8.10(j) Too close to fire station entrance
8.10(k) Parking along side or opposite of street excavation
8.10(m) Parking on a bridge or in a tunnel
8.10(n) Parking within 200 feet of an accident
8.10(o) Parking in front of a theater
8.10(p) Blocking emergency exits
8.10(q) Blocking fire escape
8.10(r) Posted prohibited parking; parking violation of any posted signs
8.10(t) Within 500 feet of a fire or fire apparatus (except volunteers and vehicles
legally parked before the fire)
8.10(u) Parking on terrace or parkway
8.13 Alley parking
2. Chapter 92, Article II of the Code of Ordinances of the City of Muskegon is
amended to repeal section 8.31.
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This ordinance adopted:
Ayes: __________________________________________________________
Nays: __________________________________________________________
Adoption Date: _________________________
Effective Date: _________________________
First Reading: _________________________
Second Reading: ________________________
CITY OF MUSKEGON
By: ______________________________
Ann Cummings, MMC, Its Clerk
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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
_______________, 2012, at which meeting a quorum was present and remained
throughout, and that the original of said ordinance is on file in the records of the City of
Muskegon. I further certify that the meeting was conducted, and public
notice was given, pursuant to and in full compliance with Act No. 267, Public Acts of
Michigan of 1976, as amended, and that minutes were kept and will be or have been
made available as required thereby.
DATED: , 2012
_______________________________________
Ann Cummings, MMC
Clerk, City of Muskegon
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 ___________________, 2012, the City Commission of
the City of Muskegon adopted an amendment to Chapter 92, Article II of the Code of
Ordinances of the City of Muskegon to repeal Section 8.31, which prohibited parking on
the street between 2:00 a.m. and 6:00 a.m. on any day between the dates of November 15
and April 15 or any other days when snow removal is necessary. The list of Level 2
parking violations was amended as follows:
(2.2) Level 2 parking violations, under the following sections of the uniform traffic code:
Code Section Offense
8.5 Parking so as to obstruct traffic
8.10(a) Parking on sidewalk
8.10(b) Blocking driveways
8.10(c) Within an intersection
8.10(e) In a crosswalk
8.10(f) Within 20 feet of a crosswalk or within 15 feet of property lines at
intersection
8.10(g) Too close to a flashing beacon, stop sign, yield sign, traffic control signal,
or other traffic sign
8.10(h) In a safety zone
8.10(i) Too close to railroad
8.10(j) Too close to fire station entrance
8.10(k) Parking along side or opposite of street excavation
8.10(m) Parking on a bridge or in a tunnel
8.10(n) Parking within 200 feet of an accident
8.10(o) Parking in front of a theater
8.10(p) Blocking emergency exits
8.10(q) Blocking fire escape
8.10(r) Posted prohibited parking; parking violation of any posted signs
8.10(t) Within 500 feet of a fire or fire apparatus (except volunteers and vehicles
legally parked before the fire)
8.10(u) Parking on terrace or parkway
8.13 Alley parking
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.
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This ordinance amendment is effective ten (10) days from the date of this
publication.
CITY OF MUSKEGON
Published: _________________, 2012 By: ______________________________
Ann Cummings, MMC, Its Clerk
------------------------------------------------------------------------------------------------------------
PUBLISH ONCE WITHIN TEN (10) DAYS OF FINAL PASSAGE
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CITY OF MUSKEGON
CITY MANAGER’S OFFICE
Memo
To: Mayor Stephen Warmington and City Commission
Cc: Mohammed Al-Shatel
Jeff Lewis
Cathy Brubaker-Clarke
From: Bryon Mazade, City Manager ________
Date: April 26, 2012
Re: Terrace Parking
_______________________________________________________________
The City Commission had recent discussion about concerns regarding
terrace parking during winter months. You requested that staff
review this matter and consider whether there should be any
changes to the current practice. The current practice is to allow
terrace parking from November 15 to April 15, when on-street
parking is prohibited from 2:00 a.m. to 6:00 a.m.
The above staff and I met to consider this matter. We came up with
two options for you to consider. They are as follows:
1. Discontinue the 2:00 a.m. to 6:00 a.m. on-street parking ban on
Local streets and the Major streets that allow parking. We would
then enforce no terrace parking throughout the year.
2. Continue the on-street parking ban and allow terrace parking but
change the time frame to December 1 to March 31.
I believe this will give you some viable options to consider.
BLM/pb
Bice\BLM TERRACE PRKNG, COMMISSION 042612
Commission Meeting Date: October 9, 2012
Date: October 4, 2012
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing - Request for an Industrial Facilities Exemption
Certificate – Johnson Technology
SUMMARY OF REQUEST:
Pursuant to Public Act 198 of 1974, as amended, Johnson Technology, Inc, 2034 Latimer
Dr, has requested the issuance of an Industrial Facilities Tax Exemption Certificate. The
total capital investment will be $301,000 in real property and will create 24 jobs. This
qualifies them for a tax abatement of 12 years.
FINANCIAL IMPACT:
The City will capture certain additional property taxes generated by the expansion (see
attached Summary Sheet).
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the attached resolution granting an Industrial Facilities Exemption Certificate for
a term of12 years for real property.
COMMITTEE RECOMMENDATION:
None
10/4/2012
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE
OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE
Johnson Technology
WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on July 26,
1983, this Commission by resolution established an Industrial Development District as requested
by the City of Muskegon for Port City Industrial Park, including the property owned by Johnson
Technology, Inc, 2034 Latimer Dr., Muskegon, Michigan 49442; and
WHEREAS, Johnson Technology, Inc, has filed an application for the issuance of an Industrial Facilities Tax
Exemption Certificate with respect to building improvements within said Industrial Development District
; and
WHEREAS, said application was filed no later than six (6) months after project completion and the Muskegon
City Commission held a public hearing on October 9, 2012, at the Muskegon City Hall in Muskegon,
Michigan at 5:30 p.m. at which hearing the applicant, the assessor and representatives of the affected
taxing units were given written notice and were afforded an opportunity to be heard on said application;
and
WHEREAS, construction of the real property had not begun earlier than six (6) months before September 24,
2012, the date of acceptance of the application for the Industrial Facilities Exemption Certificate; and
WHEREAS, the real property improvements are calculated to and will have the reasonable likelihood to retain,
create, or prevent the loss of employment in Muskegon, Michigan; and
WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of Muskegon, will
not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real
property thus exempted.
NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon,
Michigan that:
1) The Muskegon City Commission finds and determines that the Certificate considered together with
the aggregate amount of certificates previously granted and currently in force under Act No. 198 of
the Public Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 as amended shall
not have the effect of substantially impeding the operation of the City of Muskegon or impairing the
financial soundness of a taxing unit which levies ad valorem property taxes in the City of
Muskegon.
2) The application of Johnson Technology, Inc, for the issuance of an Industrial Facilities Tax
Exemption Certificate with respect to real property improvements on the following described parcel
of real property situated within the City of Muskegon to wit:
CITY OF MUSKEGON PORT CITY INDUSTRIAL CENTER NO 2 LOT 30
3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force and
effect for a period of _______ years on real property.
10/4/12
Adopted this 9th Day of October 2012.
Ayes:
Nays:
Absent:
BY: __________________________________
Stephen Gawron
Mayor
ATTEST: __________________________________
Ann Cummings
Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a regular meeting held on October 9, 2012.
______________________________
Ann Cummings
Clerk
10/4/12
AGENDA ITEM NO. ______________
CITY COMMISSION MEETING _____________________
TO: Honorable Mayor and City Commissioners
FROM: Bryon L. Mazade, City Manager
DATE: October 3, 2012
RE: Water Agreement with City of Norton Shores and Fruitport Charter Township
SUMMARY OF REQUEST:
To approve an agreement to supply water to the City of Norton Shores and Fruitport Charter
Township beginning in 2015.
FINANCIAL IMPACT:
None at this time.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
To approve the agreement and authorize the Mayor and City Clerk to execute it.
COMMITTEE RECOMMENDATION:
None.
pb\AGENDA\WTR AGRMNT, NRTN SHRS, FRTPRT CHRTR TWP 100312
AGREEMENT FOR MUNICIPAL WATER SUPPLY
This Agreement is effective on ________________, 2012, between the City of
Muskegon, 933 Terrace Street, Muskegon, Michigan ("Muskegon"), City of Norton
Shores, 4814 Henry Street, Norton Shores, Michigan("Norton Shores"), and the Charter
Township of Fruitport, 6543 Airline Road, Fruitport, Michigan (“Fruitport”).
RECITALS
A. Muskegon owns and operates a water production and distribution system with a
capacity currently capable of serving the present customers of Muskegon’s system
and the estimated demand of water customers to be served by Norton Shores and
Fruitport pursuant to this agreement.
B. Norton Shores and Fruitport each own and operate a water distribution system
within their respective corporate boundaries. In addition, Norton Shores and
Fruitportco-own a Regional Water System consisting of transmission mains and a
water tower (Regional System) described in the Regional Water Agreement of
Norton Shores and Township of Fruitport, dated August 17, 1973.
C. Norton Shores and Fruitport presently have a contract with the City of Muskegon
Heights for water supply.
D. Norton Shores and Fruitport desire to acquire all of their needed water
fromMuskegon.
E. Muskegon, Norton Shores and Fruitport agree that Norton Shores and Fruitport
shall not use any of Muskegon’s distribution system.
F. After the execution of this Agreement and prior to Muskegon providing water to
Norton Shores and Fruitport, the Parties understand and agree that there needs to
be extensive design and construction work in order for Norton Shores and
Fruitport to obtain metered water from the Muskegon Water Filtration Plant, the
details of which are not addressed in this Agreement. The Parties understand and
agree that the cost of the design and construction shall be borne by Norton Shores
and/or Fruitport.
G. The parties enter into this agreement for the mutual benefit of Muskegon, Norton
Shores and Fruitport.
THE PARTIES AGREE AS FOLLOWS:
1. Supply of Water. Muskegon shall sell and supply to Norton Shores and
Fruitport, under positive pressure, at the Muskegon Water Filtration Plant (“MWFP”),
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1
COPY REGIONAL WATER AGR.DOCX
located at 1900 Beach Street, in the City of Muskegon, such amounts of water as Norton
Shores and Fruitport may require. The water shall be delivered to Norton Shores and
Fruitportat the meter(s) located at the MWFP (“MWFP Meter(s)”) used to measure the
quantity delivered. The water shall have the same quality as that which Muskegon
furnishes and delivers to its own customers and at a minimum meets the applicable purity
standards of the State of Michigan.
2. Interruptions. In the event the supply of water by Muskegon is interrupted for
short periods of time, due to circumstances beyond its control, or due to breakdown in
Muskegon’s Filtration Plant, such interruption shall not terminate or affect this contract,
provided Muskegon exercises all due speed and diligence in eliminating the cause of such
interruption, so as to minimize its duration.
3. Rates for Water Supply.
3.1 The water supplied by Muskegon to Norton Shores and Fruitport at the
MWFPshall be paid for by Norton Shores and Fruitport, with both being jointly and
severally obligated, for all water from the MWFP Meter(s). The allocation between
Norton Shores and Fruitport shall be based on an agreed upon proportional method
between Norton Shores and Fruitport. The rate charged by Muskegon to Norton
Shores/Fruitport shall be determined annually as follows:
The “Total Water Treatment Cost Base” shall consist of the sum total of these items:
a. All budgeted salaries, benefits, supplies, services, capital and other
expenses deemed by the City to be needed for the proper operation and
maintenance of the MWFP located at 1900 Beach Street, in the City of
Muskegon, along with necessary appurtenances, i.e. intake lines, etc.
Such costs are currently accounted for under the City’s (591-60558) cost
center. The City will allocate total annual charges for insurance, indirect
costs, and administration costs proportionally between the Water Filtration
Plant cost center (591-60558) and the Water Distribution System cost
center (591-60559);
b. All budgeted annual debt service costs (i.e. principal, interest and related
fees) associated with any debt incurred for theMWFP. This shall include
both debt service existing at the time of the agreement and debt service on
any future bonds, loans or other debt instruments issued for the benefit of
the MWFP; and
c. All budgeted capital project expenditures undertaken for the benefit of the
MWFP.
Attached as Exhibit A is an example of that calculation for July 1, 2012 through June 30,
2013.
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The “Total Water Treatment Cost Base” shall be determined on or before June 1 of each
year as part of the City’s budget preparation process. The “Total Water Treatment Cost
Base” shall be divided by the total treated water pumped by the Muskegon Water
Filtration Plant as measured by meter(s) at the Plant during the annual period beginning
each May 1 and ending each April 30. This rate will be multiplied by 1.15 to arrive at the
final rate charged to Norton Shores and Fruitport. The rate charged Norton Shores and
Fruitport shall be determined not later than June 1 of each year and will be effective each
July 1.
Annually, upon completion of Muskegon’s audit, Muskegon shall provide a report
showing:
a. actual costs for the prior fiscal year versus the budgeted costs used
in the rate-making process for that fiscal year; and
b. actual water usage for that fiscal year.
Within 30 days of receiving this report, if any Party(ies) determines budgeted versus
actual costs and usageresult in an overstatement or understatement of the rate used, that
Party(ies) may provide notice of its intent to hire a qualified independent public auditing
firm, with the cost of the independent public auditing firm being borne by the Party(ies)
requesting the recalculation, experienced in governmental accounting and reasonably
acceptable to all Parties to recalculate the rate for that year in accordance with this
Agreement using actual costs and actual water use volumes for the year in question and
shall require such review to be completed and report issued to all Party(ies) within 120
days of the notice. If no Party(ies) asks for an independent review or the independent
report is not provided within the time limits provided above, any claim for overpayment
or underpayment is waived. The Parties agree that the independent auditor’s report will
be final and any amounts deemed to be owed by any Party(ies) will be paid within 60
days of the independent auditor’s report.
3.2 In the event the master meter fails to register the supply of water due to a
breakdown or other failure, the charge for the water supply shall be determined by
utilizing the average of the 30 day period prior to the breakdown. In the event that
theMWFP Meter(s) is inaccurate because of a progressive breakdown or other reason,
Muskegon reserves the right to use an average derived from a period of up to one year
prior to the breakdown, in order to determine the charge for water supplied that meter, so
long as the prior period is representative and if not a representative period shall be used.
4. Term. This agreement terminates on October 31, 2042. However, this agreement
can be renegotiated if a regional water agreement is reached and Muskegon, Norton
Shores and Fruitport agree to participate in same.
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5. Muskegon the Sole Source of Water; No Resale. Effective April 15, 2015,
Norton Shores and Fruitport agree that each shall purchase all of its municipal water
supply from Muskegon at the MWFP, excluding emergency purchases by way of the
emergency interconnect with the North Ottawa Water System. There shall be no
purchase of water by Norton Shores and Fruitport from any other source. Norton Shores
and Fruitport agree that the water supplied and furnished by Muskegonshall be solely for
use and distribution within the systems of Norton Shores and Fruitport, except that
Norton Shores and Fruitport may add customers along their respective corporate borders
so long as the new customer connects to a line that existed on September 1, 2012 or a line
that replaces a line that existed on September 1, 2012. Norton Shores and Fruitport may
expand their existing systems, but must remain within their respective corporate
boundaries,except that Norton Shores and Fruitport may install water mains after
September 1, 2012 along their respective corporate boundaries and add new customers
outside of their respective corporate boundaries but only with the approval of Muskegon.
Norton Shores and Fruitport shall not sell or supply water to any other governmental unit
not a Party to this agreement, except to service government facilities located within
Norton Shores and Fruitport, without Muskegon’s written approval. The above
prohibition on sale of water outside of Norton Shores and Fruitport corporate boundaries
does not affect the distribution and sale of water to any current water customers of
Norton Shores or Fruitport.
6. Obligations of Muskegon.
6.1 Muskegon shall supply water to Norton Shores and Fruitport in the
quantities required and send duplicate bills to Cityof Norton Shores, 4814 Henry Street,
Norton Shores, Michiganand to Charter Township of Fruitport, 6543 Airline Road,
Fruitport, Michigan for the amount actually metered, which readings will be provided
with each billing.
6.2 Muskegon shall maintain and replace the MWFP Meter(s) as required, and
shall charge the expense thereof to Norton Shores and Fruitport as an addition to the
invoice forwater charges. MWFP Meter(s) replacement shall be done by prior agreement
or if the MWFP Meter(s) accuracy is demonstrated to be outside the AWWA C 700
Standard. The cost of MWFP Meter(s) testing and/or calibration shall be shared with
Muskegon being obligated for one-half the expense and the other half being added as an
additional expense to the invoice sent to Norton Shores and Fruitport.
6.3. For purposes of construction and maintenance of a water line to transmit
water from the Muskegon Filtration Plant to the Norton Shores/Fruitport regional
distribution system, Muskegon agrees to grant reasonable access to the road right of ways
upon reasonable notice to Muskegon.
6.4. Prior to, during and after construction of a water line to transmit water
from the Muskegon Filtration Plant to the Norton Shores/Fruitport regional distribution
system, Muskegon agrees to grant reasonable access to the Filtration Plant upon
reasonable notice to Muskegon.
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7. Obligations of Norton Shores and Fruitport.
7.1 Norton Shores and Fruitportshall pay the water charges set forth above
promptly on a schedule to be determined by the parties.
7.2 Norton Shores and Fruitport shall design, construct, and pay all costs for
such improvements, including reimbursement for the MWFP Meter(s), to transport the
purchased water from the MWFP to the Norton Shores/Fruitport regional distribution
system. All necessary improvements to the MWFPtreatment processes necessary to
provide adequate pressure to Norton Shores and Fruitport shall be paid by Norton Shores
and Fruitport and thereafter owned, operated and maintained by Muskegon as part of
Muskegon’s Water Filtration Plant. Muskegon, however, is not obligated to maintain any
water mains necessary to transport water from the MWFP to the Norton Shores/Fruitport
regional distribution system, as that is a cost borne by Norton Shores and Fruitport.
7.3 Norton Shores and Fruitport shall reimburse Muskegon as appropriate for
the repair, maintenance and replacement of the MWFP Meter(s) as referred to above.
7.4 Norton Shores and Fruitport shall pay all costs for construction, design,
improvement and maintenance of its own system, meters and facilities such as, but not
limited to, underground systems, overhead facilities, system pumps, meters, access and
repair devices, all necessary to operate its water system or to increase its pressure over
that supplied by Muskegon, including the water main from the MWFP to the Norton
Shores/Fruitport distribution system.
7.5 Norton Shores and Fruitport shall include in each system all necessary
devices to prevent back flow of any kind into the water system which might contaminate
the water system of either Party.
7.6 Norton Shores and Fruitport shall be responsible for the maintenance,
repair, and replacement of its own water system unless otherwise provided for through a
separate agreement.
7.7 Norton Shores and Fruitport shall administer its own water customer
services including billings, collections, determining its customer rates and passing any
ordinances and regulations required to operate its system and comply with this
agreement.
8. System Master Plan and Reliability. The Parties understand and agree that the
physical and financial health, reliability and growth of the entire system are directly
related to that of the individual systems. Periodic reliability studies are also required as a
condition of system licensing by the State of Michigan. To that end, Muskegon
commissioned a Water System Master Plan and Reliability Study by Black and Veatch
Corporation which was submitted to Muskegon in March 2011. In addition to a detailed
system analysis, the Study makes specific recommendations for system improvements
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and regional system planning. The Parties agree to jointly discuss and consider
implementing the recommendations of the current and future Reliability Studies.
9. No Third Party Beneficiary. There shall be no other beneficiary or third party
beneficiary to this agreement. No remedy is provided or intended by this agreement for
the customers of either party.
10. Indemnification.
10.1 Norton Shores and Fruitport agree to hold harmless, protect and indemnify
Muskegon from and against any and all liabilities, losses, damage, expenses and charges,
including but not limited to attorney's fees and expenses of litigation, which may be
sustained or incurred by Muskegon arising directly or indirectly to the sale of water to
Norton Shores and/or Fruitport relating to the termination of any contractual relations
with the City of Muskegon Heights. Past and/or future water debts of Norton Shores
and/or Fruitport relating to the purchase of water from Muskegon Heights are solely the
responsibility of the Norton Shores and/or Fruitport and in no way is an obligation of
Muskegon.
10.2 Norton Shores and Fruitport shall save and hold Muskegon harmless from
any and all claims, demands or damages arising out of the design, construction or
operation of their systems, any connections between the Norton Shores and Fruitport
systems, including but not limited to all damages, costs, attorney fees, laboratory
expenses, fines, penalties, or any other expense arising out of any such claim, unless
caused by the acts or omissions caused by Muskegon.
10.3 Muskegon agrees to hold harmless, protect and indemnify Norton Shores
and Fruitport from and against any and all liabilities, losses, damage, expenses and
charges, including but not limited to attorney's fees and expenses of litigation, which may
be sustained or incurred by Norton Shores and Fruitport arising, directly or indirectly, if
the supplied water fails to meet minimum applicable water purity standards of the State
of Michigan.
11. Assignment. This contract may not be assigned to another entity by any Party
without prior written consent of all Parties.
12. Entire Agreement. This Agreement sets forth the entire understanding of the
Parties with respect to its subject matter. This Agreement supersedes and/or replaces
allprior oral or written Agreements between the Parties.
13. Severability. In the event any provision of this agreement is determined to be
invalid by any court or tribunal having jurisdiction, the balance of the agreement shall
remain in full force and effect and the Parties shall review the invalid provision and reach
an agreement as to a replacement provision.
14. Law Applicable. This agreement shall be interpreted under Michigan Law.
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15. Notice. Any notice required to be given or made to a party must be in writing and
will be deemed given when delivered personally or by registered or certified mail (return
receipt requested), addressed to the party at its address stated above. Addresses for giving
notice may be changed by giving notice of the new address.
16. Approvals. This agreement shall be effective on November 1, 2012, but only
after approvals given by the governing body of each Party.
City of Muskegon
Date:___________________, 2012 By ____________________________
Stephen Gawron, Mayor
Date: ___________________, 2012 and ___________________________
Ann Marie Cummings, Clerk
City of Norton Shores
Date:___________________, 2012 By ____________________________
Gary Nelund, Mayor
Date: ___________________, 2012 and ___________________________
Lynne Fuller, Clerk
Charter Township of Fruitport
Date:___________________, 2012 By ____________________________
Brian K. Werschem, Supervisor
Date: ___________________, 2012 and ___________________________
Carol Hulka, Clerk
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DATE: 09/28/2012
TO: Honorable Mayor and Commissioners
FROM: Jeff Lewis, Director of Public Safety
RE: Concurrence with the Housing Board of Appeals Notice and Order
to Demolish. Dangerous Building Case #: EN120025
SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
1692 ELWOOD ST Area 13 is unsafe, substandard, a public nuisance and that
it be demolished within thirty (30) days. It is further requested that administration
be directed to obtain bids for the demolition of the structure and that the Mayor
and City Clerk be authorized and directed to execute a contract for demolition
with the lowest responsible bidder.
Case# & Project Address: # EN120025 - 1692 ELWOOD ST
Location and ownership: This structure is located on Elwood between E. Dale
and E. Larch Ave and is owned by 37 E MAIN LLC, P.O. Box 652, Lake Odessa,
MI 48849.
Staff Correspondence: A dangerous building inspection was conducted on
02/22/12. An interior inspection was conducted 03/29/12. The Notice and Order
to Repair was issued on 02/23/12. On 05/03/12 the HBA tabled case until June
2012 to allow owner time to submit timeline acceptable with emphasis on exterior
violations to be corrected. The case returned June 7, 2012 and was tabled by
the HBA for 30 days due to timeline submitted not agreeable to Inspections. The
HBA declared the structure dangerous, substandard and a public nuisance on
August 2, 2012.
Owner Contact: Owners were present for all 3 HBA meetings stating they were
trying to establish a timeline that would best utilize their resources and be able to
avail themselves of rehab grants thru the City. Two timelines were submitted that
were not acceptable. An acceptable timeline was received by email August 29th
with a target date to complete repairs by November 15, 2012. As of 9/28/12 there
has not been an permit application received by the Inspections Department.
Financial Impact: CDBG Funds
Budget action required: None
State Equalized value: $18,200 (Entire property)
Estimated cost to repair: $35,000
Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
SUMMARY FOR: 1692 ELWOOD ST
1692 Elwood is a wood frame two family dwelling. This building needs an extensive amount of
repair including new roof, soffit and fascia repairs, front porch repair, as well as numerous interior
repairs.
There have been numerous contacts with the property owners and an agreeable time line for
th st
repairs was received on August 28 . On August 31 an attempt was made (by e-mail) to contact
the property owner asking asking them to contact me to get the project started. To date there has
been no further contact from the property owner and no permit has been applied for. This building
is a blighting influence on the neighborhood and will continue deteriorate.
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