City Commission Packet 07-09-2013

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      CITY OF MUSKEGON
       CITY COMMISSION MEETING
                           JULY 9, 2013
     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. “Development and Reimbursement Agreement” between the City of
         Muskegon Brownfield Redevelopment Authority (BRA) and Terrace
         Point Landing, LLC (Jon Rooks).    PLANNING & ECONOMIC
         DEVELOPMENT
      C. Restrictive Covenant Declaration. PUBLIC WORKS
      D. West Michigan Fossil Jewelry Business/Concession Contract for City of
         Muskegon Parks. PUBLIC WORKS
      E. Consideration of Bids for Southern Avenue, Fifth to Sanford (H-1688).
         ENGINEERING
      F. Intergovernmental   Agreement     for   Traffic   Signal   Maintenance.
         ENGINEERING
    PUBLIC HEARINGS:


      A. Request for an Industrial Facilities Exemption Certificate – Northern
         Machine Tool. PLANNING & ECONOMIC DEVELOPMENT
    COMMUNICATIONS:


    CITY MANAGER’S REPORT:


    UNFINISHED BUSINESS:


    NEW BUSINESS:

        A. CATV Franchise Agreement. CITY MANAGER
    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:    July 9, 2013
To:      Honorable Mayor and City Commissioners
From:    Ann Marie Cummings, City Clerk
RE:      Approval of Minutes




SUMMARY OF REQUEST: To approve minutes of the June 25th City
Commission Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                         JUNE 25, 2013
    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, June 25, 2013.
Mayor Gawron opened the meeting with a prayer from 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.
2013-53 INTRODUCTIONS/PRESENTATION:
     A. Recognition of Spring 2013 Citizen’s Police Academy Graduates.
        PUBLIC SAFETY
Public Safety Director Jeff Lewis read the resolution and thanked the 2013
Citizen’s Police Academy for their faithful attendance, completion and
graduation from the ten week academy.
2013-54 CONSENT AGENDA:
     A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the June 10th Commission
Worksession Meeting, and the June 11th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
     B. Selection of Vinyl Siding Supplier for       Fiscal   Year   2013-2014.
        COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the Community and Neighborhood Services
department’s selection of the Vinyl Siding Supplier for 2013-2014 fiscal year.


                                                                             1
After reviewing all bids, the department selected the bid from Home Acres
Building Supply Co, LLC, located at 2121 Harvey St, Muskegon, MI, for the price
of $47.10 per building square for white and $49.50 per square for color.
The Community and Neighborhood Services department received 3 additional
bids from:
   1. Weber Lumber, Muskegon White - $48.00/sq Color - $49.50/sq
   2. Keene Lumber, Muskegon White - $50.00/sq Color - $51.00/sq
   3. Sethco Lumber, Muskegon White - $58.34/sq Color - $59.34/sq

FINANCIAL IMPACT: Funding will be disbursed from the 2013-2014 Community
Development Block Grant Vinyl Siding fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the request.
COMMITTEE RECOMMENDATION: The funding for the Vinyl Siding program was
approved by the Commission during the 2013-2014 allocation period last May.
       C. Selection of Vinyl Siding Installer for       Fiscal   Year   2013-2014.
          COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the Community and Neighborhood Services
to sign a contract with Tucker Construction, 1620 Fruitvale Rd, Holton, MI, to
install vinyl siding at an agreed price of $39.00 per building square for the Vinyl
Siding program’s 2013-2014 fiscal year.
The Community and Neighborhood Services office received 2 additional bids
from vinyl siding installers:
      Barnes and Telman Solutions LLC, Fruitport           $72.00
      Bradfield Home Improvement, Grand Haven              $85.00
FINANCIAL IMPACT: Funding will be disbursed from the 2013-2014 Community
Development Block Grant Vinyl Siding fund.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the request
COMMITTEE RECOMMENDATION: The funding for the Vinyl Siding program was
approved by the Commission during the 2013-2014 allocation period last May.
       D. Amendment to Current 3-Year Concession Contract to Include
          Motor/Jet Boat Tube Rides at Pere Marquette Park and Harbour Towne
          Beach. PUBLIC WORKS
Removed per request of applicant.
       E. L-3 Video Systems. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to purchase 1 new server and 18 L-3

                                                                                 2
video systems out of Boonton, New Jersey, upgrades to our current video
systems.
FINANCIAL IMPACT: $60,830.
BUDGET ACTION REQUIRED: The purchase is in the 2013/2014 budget.
STAFF RECOMMENDATION: Authorize staff to purchase 1 new server and 18 L-3
video systems upgrades from L-3 Communications.
      F. 2013-2014 Michigan Municipal League Membership Dues. CITY CLERK
SUMMARY OF REQUEST: Approval to pay the 2013-2014 MML dues in the amount
of $9,346. This is an increase of $220.
FINANCIAL IMPACT:
      MML Dues           $8,496
      Legal Defense Fund $ 850
           Total:        $9,346
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
      G. Special Event Request – “Moosefest”, August 17, 2013. PLANNING &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The Child Abuse Council has filed a special event
application for their annual Moosefest music festival to be held at Heritage
Landing on Saturday, August 17, 2013. This year, they would like permission to
sell liquor as part of their license.
One of the Moosefest vendors, Jim Beam, would like to sell slush-type drinks
containing liquor. The liquor is pre-measured and comes in a pouch, which is
then frozen and served by the cup. This would a very similar product to what
the former Summer Celebration sold at their “tiki bar” during that festival. No
liquor will be poured from bottles.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: None.
Motion by Vice Mayor Spataro, second by Commissioner German to approve
the Consent Agenda as read except Item D which was withdrawn by the
applicant.
ROLL VOTE: Ayes: Markowski, Gawron, Hood, Spataro, German, Wierengo, and
           Turnquist
            Nays: None
MOTION PASSES


                                                                             3
2013-55 NEW BUSINESS:
         A. Water Rate Increase. FINANCE
SUMMARY OF REQUEST: Staff is recommending a 10% water rate increase (from
$1.54 to $1.69 per hundred cubic feet or $2.06 to $2.27 per 1000 gallons)
effective October 1, 2013. The increase is needed to provide adequate cash
reserves for operating and capital needs, maintain debt service coverage ratios
as required by the City’s water revenue bond covenants and stabilize water
system finances until the new municipal customers begin water purchases from
the system in 2015. Water use has declined significantly in the last decade due
to economic conditions, improved conservation efforts, and rapidly rising
sewage treatment costs.
FINANCIAL IMPACT: The proposed rate increase will generate an estimated
$425,000 in additional water revenue in FY2014. The following table compares
existing and proposed rates to other area communities and provides an estimate
of the monthly impact on typical households:

                                                           Fixed                            Fixed 
                                               Water                  Total  Water  rate                   Total 
                                                          Charge                           Charge 
Community                                    rate based              Monthly  based  on                   Monthly 
                                                         or Water                         or Water 
                                              on 7,500                 Bill    15,000                       Bill
                                                          Admin                            Admin
                                                gals*                           gals*
Whitehall                                     $       2.00 $     ‐   $   15.00   $   2.00 $     ‐   $   30.00
Muskegon  (current)                                   2.06       ‐       15.44        2.0       ‐       30.88
Muskegon  (proposed)                                  2.27       ‐       17.00        2.2       ‐       33.99
Montague                                              2.30      6.60     23.85        2.3      6.60     41.10
Muskegon  Heights                                     2.38      7.79     25.64        2.3      7.79     43.49
Grand  Rapids                                         2.37      9.99     27.77        2.3      9.99     45.54
Roosevelt  Park                                       3.38      8.31     33.66        3.3      8.31     59.01
Norton  Shores                                        3.69      8.22     35.90        3.6      8.22     63.57
Muskegon  Township                                    4.34      9.00     41.60        4.3      9.00     74.20
North  Muskegon                                       4.55     10.00     44.00        4.5     10.00     78.00
 Average                                      $       2.93 $    8.56 $   27.99   $   2.93 $    8.56 $   49.98
* Water rates  are expressed  per 1,000 gallons  of  use

BUDGET ACTION REQUIRED: Revenue estimates included in the forthcoming
2013-14 budget are based on the new rate structure.
STAFF RECOMMENDATION:                   Approval of the resolution increasing water rates
effective 10/1/2013.
Motion by Vice Mayor Spataro, second by Commissioner Hood to adopt the
resolution increasing the water rates effective October 1, 2013, as presented.
ROLL VOTE: Ayes: Gawron, Hood, Spataro, German, Wierengo, Turnquist, and

                                                                                                      4
            Markowski
            Nays: None
MOTION PASSES
      B. Wastewater Billing Settlement Agreement. CITY MANAGER
SUMMARY OF REQUEST: To approve a Settlement Agreement with the County of
Muskegon regarding a wastewater billing dispute.
FINANCIAL IMPACT: $400,000 paid to the City.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION:       To approve the Settlement Agreement and
authorize the Mayor and Clerk to sign it. Further, the Mayor and Clerk are
hereby authorized to sign the Master Contract for the Muskegon County
Wastewater System.
Motion by Commissioner Hood, second by Commissioner Wierengo to approve
the Settlement Agreement and authorize the Mayor and Clerk to sign it and also
to sign the Master Contract.
ROLL VOTE: Ayes: Hood, Spataro, German, Wierengo, Turnquist, Markowski, and
           Gawron
            Nays: None
MOTION PASSES
      C. Farmers Market/Bike Time. CITY MANAGER
SUMMARY OF REQUEST: To continue to support the Bike Time event and
approve proposed uses of City facilities during Bike Time in 2014, as they
specifically relate to the Farmers Market:
       1. Close Western Avenue from Eighth Street to Terrace Street (except to
          motorcycles) for use as Bike Time’s “Steel Horse Alley”;
       2. Lease the stalls in the south building to Bike Time from Thursday
          through Sunday (only charge for Thursday and Saturday), including
          the parking spaces between the building and Western Avenue.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request.
COMMITTEE RECOMMENDATION: The Mayor appointed an internal committee
comprised of Commissioners and staff, and the committee supports the request.
Motion by Vice Mayor Spataro, second by Commissioner German to table and
direct staff to have a meeting with Market Master, Vendors, Bike Time, City Staff,


                                                                                5
and Commission.
ROLL VOTE: Ayes: German, Wierengo, Turnquist, Markowski, Hood, and Spataro
           Nays: Gawron
MOTION PASSES
ANY OTHER BUSINESS:   The summer program at Muskegon High School was
discussed.
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:53 p.m.


                                        Respectfully submitted,




                                        Ann Marie Cummings, MMC
                                        City Clerk




                                                                         6
                  Commission Meeting Date: July 9, 2013




Date:        June 26, 2013
To:          Honorable Mayor & City Commission
From:        Planning & Economic Development Department
RE:          “Development and Reimbursement Agreement” between
             the City of Muskegon Brownfield Redevelopment Authority
             (BRA) and Terrace Point Landing, LLC (Jon Rooks)


SUMMARY OF REQUEST: The DDA Plan Amendment and Brownfield
Redevelopment Plan Amendment & Resolution for Terrace Point Landing, LLC have
been approved by the BRA, DDA and City Commission. The last document for
approval is the “Development and Reimbursement Agreement” (“Agreement”). The
Agreement outlines the tax capture and reimbursement process for the project.

FINANCIAL IMPACT: Future Brownfield Development (BRA) TIF capture will be
directed to Mr. Rooks for reimbursement of loans he is securing for redevelopment of
the property.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: To endorse the approval by the BRA for the
“Development and Reimbursement Agreement” between the City of Muskegon BRA
and Terrace Point Landing, LLC.

COMMITTEE RECOMMENDATION: The BRA met on June 26, 2013 and approved
the “Agreement”.
Date:    July 9, 2013

To:      Honorable Mayor and City Commissioners

From: DPW
RE:      Restrictive Covenant Declaration


SUMMARY OF REQUEST:

Authorize the mayor and clerk to sign the attached declaration of restrictive covenant at
the public service building, 1350 E. Keating and authorize Westshore Engineering to
record said restriction.



FINANCIAL IMPACT:
The cost of recording which is estimated to be less than $200.00



BUDGET ACTION REQUIRED:
None


STAFF RECOMMENDATION:
Authorize the mayor & clerk to sign off on the declaration as well as authorize Westshore
Engineering record the restriction if was approved.



COMMITTEE RECOMMENDATION:
                             AGENDA ITEM NO._____________

                  CITY COMMISSION MEETING ___________________



TO:           Honorable Mayor and City Commission


FROM:         Department of Public Works


DATE:         July 9, 2013


SUBJECT:      West Michigan Fossil Jewelry Business/Concession Contract for City of
              Muskegon Parks.


SUMMARY OF REQUEST:
Staff is asking permission to enter into 1-year contractual agreement with Kevin VanBrocklin of
West Michigan Fossil Jewelry at Pere Marquette Park, located within the City of Muskegon, to
sell various jewelry items as outlined in the attached proposal.


FINANCIAL IMPACT:
Contract revenue will be 10% of gross receipts, per the Business/Concession Contract.


BUDGET ACTION REQUIRED:
None


STAFF RECOMMENDATION:
Authorize DPW staff to enter into a 1-year Business/Concession Contract with Kevin Van
Brocklin of West Michigan Fossil Jewelry.


COMMITTEE RECOMMENDATION:
Date:             July 9, 2013
To:               Honorable Mayor and City Commissioners
From:             Engineering
RE:              Consideration of Bids for:
                 Southern Ave., Fifth to Sanford (H-1688)


SUMMARY OF REQUEST:
Award the reconstruction contract for Southern Ave. from Fifth to Sanford to McCormick
Sand out of Twin Lake since they were the lowest responsible bidder with a total bid price
of $236,732, see attached bid tabulation.


FINANCIAL IMPACT:
The construction cost of $236,732 plus engineering


BUDGET ACTION REQUIRED:
none


STAFF RECOMMENDATION:
Award the contract to McCormick Sand.



COMMITTEE RECOMMENDATION:




C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\CONAWA 7-9-13 (2).doc
                                                                                               H-1688. S-665, W-739
                                                                                      SOUTHERN AVE., FIFTH ST. TO SANFORD ST.



                                                                    CONTRACTOR                                                ACCURATE EXCAVATORS, LLC                   MCCORMICK SAND INC.
                                                                        ADDRESS              ENGINEER'S                            2821 CENTRAL RD.                         5430 RUSSELL RD.
                                                                      CITY/ST/ZIP             ESTIMATE                           MUSKEGON, MI 49445                       TWIN LAKE, MI 49457
LINE                      DESCRIPTION                        UNIT   QUANTITY        UNIT PRICE      TOTAL PRICE           UNIT PRICE          TOTAL PRICE             UNIT PRICE         TOTAL PRICE
1      Mobilization, Max__$26300                              LS        1              $13,200.00    $    13,200.00   $       13,017.70   $           13,017.70   $          5,005.99   $      5,005.99
2      Tree, Rem, 19 inch to 36 inch                          Ea        1                 $900.00    $       900.00   $        1,500.00   $            1,500.00   $          1,200.00   $      1,200.00
3      Sewer, Rem, Less than 24 inch                          Ft       204                  $2.00    $       408.00   $            7.75   $            1,581.00   $              8.00   $      1,632.00
4      Dr Structure, Rem, Modified                            Ea        11                $250.00    $     2,750.00   $          290.00   $            3,190.00   $            275.00   $      3,025.00
5      Sidewalk, Rem                                         Syd       240                  $5.00    $     1,200.00   $            8.00   $            1,920.00   $              9.00   $      2,160.00
6      Pavt, Rem, Modified                                   Syd       3902                 $4.00    $    15,608.00   $            4.00   $           15,608.00   $              3.00   $     11,706.00
7      Machine Grading, Modified                             Sta        9               $1,200.00    $    10,800.00   $        1,175.00   $           10,575.00   $          1,000.00   $      9,000.00
8      Erosion Control, Inlet Protection, Fabric Drop         Ea         8                $100.00    $       800.00   $           90.00   $              720.00   $             50.00   $        400.00
9      Aggregate Base, 8 inch                                Syd       3418                 $6.00    $    20,508.00   $            5.75   $           19,653.50   $              5.00   $     17,090.00
10     Maintenance Gravel, LM                                Cyd       100                 $20.00    $     2,000.00   $           20.00   $            2,000.00   $             30.00   $      3,000.00
11     Sewer, Cl E, 12 inch, Tr Det B                         Ft       203                 $22.00    $     4,466.00   $           30.00   $            6,090.00   $             28.00   $      5,684.00
12     Sewer, Cl A, 18 inch, Tr Det B                         Ft        20                 $30.00    $       600.00   $           80.00   $            1,600.00   $             43.00   $        860.00
13     Sewer Tap, 8 inch, modified                            Ea        2                 $150.00    $       300.00   $          600.00   $            1,200.00   $            160.00   $        320.00
14     Sewer Tap, 12 inch, modified                           Ea        1                 $300.00    $       300.00   $          600.00   $              600.00   $            170.00   $        170.00
15     Sewer Tap, 18 inch, modified                           Ea        1                 $400.00    $       400.00   $        1,000.00   $            1,000.00   $            190.00   $        190.00
16     Sanitary Sewer, PVC SDR 35, 6 inch, Tr Det B           Ft        83                 $28.00    $     2,324.00   $           36.00   $            2,988.00   $             23.00   $      1,909.00
17     Sanitary Sewer, PVC SDR 35, 8 inch, Tr Det B           Ft       646                 $32.00    $    20,672.00   $           25.00   $           16,150.00   $             18.00   $     11,628.00
18     Sanitary Sewer, PVC SDR 35, 12 inch, Tr Det B          Ft        20                 $40.00    $       800.00   $           30.00   $              600.00   $             25.00   $        500.00
19     Sanitary Sewer, Wye, PVC SDR 35, 8"x 6"                Ea        6                  $200.00   $     1,200.00   $          200.00   $            1,200.00   $            110.00   $        660.00
20     Dr Structure Cover, Adj, Case 1, Modified              Ea        10                 $550.00   $     5,500.00   $          400.00   $            4,000.00   $            350.00   $      3,500.00
21     Dr Structure, Adj, Add Depth                           Ft        8                  $200.00   $     1,600.00   $          180.00   $            1,440.00   $            250.00   $      2,000.00
22     Dr Structure, Tap, 8 inch                              Ea        3                  $125.00   $       375.00   $          600.00   $            1,800.00   $            120.00   $        360.00
23     Dr Structure, Tap, 12 inch                             Ea        6                  $140.00   $       840.00   $          600.00   $            3,600.00   $            150.00   $        900.00
24     Dr Structure Cover, Modified                          Lbs       9030                  $1.00   $     9,030.00   $            1.00   $            9,030.00   $              1.35   $     12,190.50
25     Catch Basin Special Detail                             Ea        8                $1,350.00   $    10,800.00   $        1,075.00   $            8,600.00   $          1,000.00   $      8,000.00
26     Manhole, Special Detail                                Ea        4                $1,200.00   $     4,800.00   $        1,500.00   $            6,000.00   $          1,800.00   $      7,200.00
27     HMA, 3C                                               Ton       409                  $65.00   $    26,585.00   $           60.00   $           24,540.00   $             57.10   $     23,353.90
28     HMA, 5E3                                              Ton       409                  $65.00   $    26,585.00   $           80.00   $           32,720.00   $             74.54   $     30,486.86
29     Driveway, Nonreinf Conc, 6 Inch, Modified             Syd       497                  $33.00   $    16,401.00   $           28.50   $           14,164.50   $             28.00   $     13,916.00
30     Curb and Gutter, Conc, Det F4                          Ft       1917                 $14.00   $    26,838.00   $           10.50   $           20,128.50   $             10.00   $     19,170.00
31     Detectable Warning Surface                             Ft       116                  $10.00   $     1,160.00   $           37.00   $            4,292.00   $             32.00   $      3,712.00
32     Sidewalk Ramp, Conc, 4 inch                            Sft      610                   $6.00   $     3,660.00   $            4.65   $            2,836.50   $              4.75   $      2,897.50
33     Sidewalk, Conc, 4 inch                                 Sft      1175                  $3.00   $     3,525.00   $            3.10   $            3,642.50   $              3.00   $      3,525.00
34     Sidewalk, Conc, 6 inch                                 Sft       95                   $4.00   $       380.00   $            3.25   $              308.75   $              3.50   $        332.50
35     Pavt Mrkg, Ovly Cold Plastic, 6 inch, Crosswalk        Ft       505                   $2.00   $     1,010.00   $            3.30   $            1,666.50   $              3.00   $      1,515.00
36     Pavt Mrkg, Ovly Cold Plastic, 18 inch, Stop Bar        Ft        84                   $6.00   $       504.00   $            9.90   $              831.60   $              5.00   $        420.00
37     Pavt Mrkg, Waterborne, 4 inch, Yellow                  Ft       415                   $0.80   $       332.00   $            1.05   $              435.75   $              1.00   $        415.00
38     Barricade, Type III, High Intensity, Lighted, Furn     Ea        10                  $17.00   $       170.00   $           66.00   $              660.00   $             55.00   $        550.00
39     Barricade, Type III, High Intensity, Lighted, Oper     Ea        10                   $3.00   $        30.00   $            1.25   $               12.50   $              1.00   $         10.00
40     Minor Traf Devices                                     LS        1                  $500.00   $       500.00   $          880.00   $              880.00   $            975.00   $        975.00
41     Plastic Drum, High Intensity, Furn                     Ea        40                  $17.00   $       680.00   $           11.00   $              440.00   $             12.25   $        490.00
42     Plastic Drum, High Intensity, Oper                     Ea        40                   $3.00   $       120.00   $            1.25   $               50.00   $              0.75   $         30.00
43     Sign, Type B, Temp, Furn                               Sft      365                   $1.00   $       365.00   $            2.75   $            1,003.75   $              2.75   $      1,003.75
44     Sign, Type B, Temp, Oper                               Sft      365                   $3.00   $     1,095.00   $            1.25   $              456.25   $              1.00   $        365.00
45     Topsoil Surface, Furn, 4 inch                         Syd       299                   $3.50   $     1,046.50   $            6.75   $            2,018.25   $              8.00   $      2,392.00
46     Hydroseeding                                          Syd       299                   $1.00   $       299.00   $            0.55   $              164.45   $              3.00   $        897.00
47     Watermain, DI, 6 Inch, Tr Det G, Modified              Ft        25                  $40.00   $     1,000.00   $           55.00   $            1,375.00   $             60.00   $      1,500.00
48     Water Service, 1 inch, Copper Type K                   Ft       380                  $25.00   $     9,500.00   $           19.00   $            7,220.00   $             14.00   $      5,320.00
49     Corporation Stop, 1 inch                               Ea        9                  $250.00   $     2,250.00   $          300.00   $            2,700.00   $            240.00   $      2,160.00
50     Curb Stop and Box, 1 inch                              Ea        8                  $250.00   $     2,000.00   $          400.00   $            3,200.00   $            385.00   $      3,080.00
51     Hydrant, Standard, 6 inch                              Ea        1                $2,220.00   $     2,220.00   $        1,500.00   $            1,500.00   $          2,200.00   $      2,200.00
52     Sleeve, 6 inch, Long, DI, MJ                           Ea        1                  $350.00   $       350.00   $          400.00   $              400.00   $          1,000.00   $      1,000.00
53     Valve, 6 inch, Gate with Box                           Ea        1                  $600.00   $       600.00   $          800.00   $              800.00   $          1,200.00   $      1,200.00
54     Water Valve Box and Cover, Complete                    Ea        6                  $350.00   $     2,100.00   $          240.00   $            1,440.00   $            450.00   $      2,700.00
55     Meter Pit Complete                                     Ea        1                  $750.00   $       750.00   $          950.00   $              950.00   $            825.00   $        825.00


                                                                                                     $   264,236.50                       $          266,500.00                         $    236,732.00
                                                     TOTAL
Date:             July 9, 2013
To:               Honorable Mayor and City Commissioners
From:             Engineering
RE:               Intergovernmental Agreement for Traffic Signal Maintenance


SUMMARY OF REQUEST:
Endorse the Muskegon County Road Commission (MCRC) selection of Windemuller
Electric for the county-wide traffic signal maintenance thru 2016. Windemuller was
selected via public bids received by MCRC, see attached bid tabulation.


FINANCIAL IMPACT:
Based on the historical data over the last four years, it is estimated that the cost will be
about $40,000/year.

BUDGET ACTION REQUIRED:
None.


STAFF RECOMMENDATION:
Endorse the contract between MCRC & Windemuller Electric.



COMMITTEE RECOMMENDATION:




C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\agenda item for interegovermental agreement with
MCRC 07-9-13 - thru 2016 (3).doc
                      Commission Meeting Date: July 9, 2013




Date:         July 3, 2013
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Public Hearing - Request for an Industrial Facilities Exemption
              Certificate – Northern Machine Tool.


SUMMARY OF REQUEST:

Pursuant to Public Act 198 of 1974, as amended, Northern Machine Tool, 761 Alberta Ave,
has requested the issuance of an Industrial Facilities Exemption Certificate. The total capital
investment is $1,150,000, which includes new personal property and real property
improvements. This request qualifies the company for a term of six (6) years for personal
property and twelve (12) years for real property.



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

COMMITTEE RECOMMENDATION:

None




7/3/2013
                                            Resolution No. _______


                                      MUSKEGON CITY COMMISSION

                         RESOLUTION APPROVING APPLICATION FOR ISSUANCE
                          OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE
                                   Northern Machine Tool Company.


WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on July 13,
     2004, this Commission by resolution established an Industrial Development District as requested
     by Northern Machine Tool for the property at Alberta Ave, Muskegon, Michigan 49441; and

WHEREAS, Northern Machine Tool has filed an application for the issuance of an Industrial Facilities Tax
     Exemption Certificate with respect to a building improvements and new machinery and equipment to
     be installed within said Industrial Development District ; and

WHEREAS, before acting on said application the Muskegon City Commission held a public hearing on
     September 13, 2011, 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, the installation of machinery and equipment is 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 Northern Machine Tool, for the issuance of an Industrial Facilities Tax
            Exemption Certificate with respect to the building expansion and installation of new machinery and
            equipment on the following described parcel of real property situated within the City of Muskegon
            to wit:


             CITY OF MUSKEGON GREGORY ADDITION LOTS 32-37 INCL LOTS 41-46 INCL & ADJ VAC
             ALLEY ALSO N 153.12 FT OF S 178.87 FT OF W 209 FT OF NW FRL 1/4 OF SW 1/4 SEC 31
             T10N R16 W W 33 FT USED FOR ST


         3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force and
            effect for a period of six (6) years on personal property and twelve (12) years on real property.




7/3/13
Adopted this 9th Day of July 2013.


Ayes:

Nays:

Absent:

                                                   BY: __________________________________
                                                          Stephen Gawron, Mayor


                                              ATTEST: __________________________________
                                                         Ann Cummings, City 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 July 9, 2013.


                                                            ______________________________
                                                            Ann Cummings, City Clerk




7/3/13
Date: July 9, 2013
To: Honorable Mayor and City Commissioners
From: City Manager
RE: CATV Franchise Agreement


SUMMARY OF REQUEST: The City’s 25-year cable TV franchise agreement
with Comcast expires August 2, 2013. Legislation adopted in 2007 generally takes
franchise negotiations out of local community’s control and, instead, requires the use
of a “Uniform Video Local Franchise Agreement.” Comcast recently (June 20th)
submitted a Uniform Franchise Agreement for the City’s consideration. The City has
15 business days to respond as to the completeness of Comcast’s Uniform
Franchise application and 30 business days in which to approve the application.

The City of Detroit previously challenged the Uniform Franchise in federal court and
that court has generally found in favor of Detroit. However, final resolution of the
Detroit case is several months away.

Our legal counsel on this matter advises that it is in the City of Muskegon’s interest
to: 1) deny the Uniform Franchise as initially submitted by Comcast and delegate
authority to negotiate with Comcast to the city manager by adoption of the attached
resolution and, 2) send the attached reply letter to Comcast.

FINANCIAL IMPACT: There is no immediate budgetary impact. The franchise
fee received by the City remains at 5%. Depending on the final outcome of
negotiations with Comcast and/or the Detroit litigation, the City may receive additional
benefits from the franchise renewal.

BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Adoption of the attached delegation resolution.
COMMITTEE RECOMMENDATION: None
                                         RESOLUTION

       WHEREAS, Public Act 480 of 2006 (the Uniform Video Services Local Franchise Act,
hereafter the "Act") requires video service providers to obtain a franchise from a municipality by
means of a Uniform Video Service Local Franchise Agreement ("Uniform Franchise"); and

        WHEREAS, the Michigan Public Service Commission ("MPSC") on January 30, 2007
issued an order ("Order") that provided a Uniform Franchise form; and

        WHEREAS, the Act provides the City of Muskegon (the "Municipality") fifteen (15)
business days from the date an application for a Uniform Franchise is filed with the Municipality
to respond as to the completeness of the Uniform Franchise; and

       WHEREAS, the Act provides the Municipality thirty (30) days from the submission date
of a complete application for a Uniform Franchise in which to act to approve the Uniform
Franchise; and

        WHEREAS, the Municipality wishes to memorialize that on the effective date of the
Act, January 1, 2007, Comcast was the incumbent video provider in the Municipality with the
largest number of subscribers; and

       WHEREAS, the Municipality wishes to memorialize the number of public, educational
and governmental access ("PEG") channels in actual use on the incumbent video provider's
system in the Municipality on the effective date of the Act, January 1, 2007; and

        WHEREAS, the Municipality also wishes to memorialize the franchise fees being paid
by the incumbent provider under its existing franchise agreement on the effective date of the Act;
and

       WHEREAS, the Municipality has determined that it must designate an official to whom
it delegates the authority to respond to, complete, sign and approve Uniform Franchise
applications in order to meet the deadlines under the Act, including establishing the video service
provider franchise fees and fees to support PEG facilities and services provided for in Uniform
Franchises, and taking all actions related thereto; and

        WHEREAS, the Municipality desires to provide such official with guidance on such
fees; and

         WHEREAS, the Municipality does not intend that by approving a Uniform Franchise
that it shall be waiving rights, nor does it understand that the Act or the MPSC Order so requires;
and

        WHEREAS, the State of Michigan has determined that a municipality may, in
compliance with the Act, deny a Uniform Franchise application and the federal courts have
agreed.
        NOW, THEREFORE, BE IT HEREBY RESOLVED that it is hereby memorialized
that, on January 1, 2007, the effective date of the Act, Comcast was the incumbent video
provider with the largest number of subscribers in Municipality, and that under its existing
franchise agreement with Municipality, Comcast was paying Municipality a franchise fee of
fiver percent (5%) of gross revenues, as determined by such existing franchise agreement; and

        BE IT FURTHER RESOLVED that it is hereby memorialized that there were two
public, educational and governmental access channels in actual use on the incumbent video
provider's system in the Municipality on the effective date of the Act, January 1, 2007; and

       BE IT FURTHER RESOLVED that a fee of five percent (5%) of gross revenues from
video service providers is hereby established as the annual video service provider franchise fee,
which is also the fee paid to the Municipality by Comcast under its existing cable franchise with
Municipality; and

       BE IT FURTHER RESOLVED that the Municipality designates and delegates to the
Manager, with the restrictions set forth herein, full authority to respond to and to complete and
approve or else to deny a Uniform Franchise application, and to carry out negotiations with video
service providers to accomplish any necessary modifications to a proposed Uniform Franchise
necessary to meet local needs, and to take all such other actions related thereto as are necessary;
and

        BE IT FURTHER RESOLVED that such authority includes the Manager having the
authority to determine within the statutory deadlines whether the Uniform Franchise application
as submitted is complete, and having the authority to sign it indicating approval of the
Municipality or else to deny it on behalf of the Municipality; and

         BE IT FURTHER RESOLVED that the Manager, Clerk, City Attorney, Municipality's
Special Counsel and other of Municipality's officials are hereby authorized and directed to take
all actions necessary to place a Uniform Franchise into effect in accordance with this resolution;
and

       BE IT FURTHER RESOLVED that no response, completion, approvals, deemed
approvals under the Act or signature of the Manager on a Uniform Franchise shall be construed
or understood to be a waiver by the Municipality of its police powers; rights it may possess
under the Act, Michigan law, the Michigan Constitution, federal law (including the right to
pursue the renewal process in accordance with Section 626 of the Federal Cable Act), or court
decisions regarding the Act; or right to challenge or modify a Uniform Franchise if the Act in
whole or in part is amended by the legislature or overturned by the courts; and

       BE IT FINALLY RESOLVED that all resolutions in conflict with this resolution are
hereby superseded and replaced by this resolution.
Affirmative Action
(231)724-6703
FAX (231)722-1214

Assessor
(231)724-6708
FAX (231)726-5181

Cemetery
(231)724-6783
FAX (231)726-5617

City Manager
(231)724-6724
FAX (231)722-1214

Civil Service
(231)724-6716
                      July 10, 2013
FAX (231)724-4405

Clerk
(231)724-6705
FAX (231)724-4178
                      John P. Gardner
Comm. & Neigh.        Sr. Government Affairs Manager
Services
                      Comcast, Heartland Region
(231)724-6717
FAX (231)726-2501
                      1401 E. Miller Rd.
                      Lansing, MI 48911
Engineering
(231)724-6707
FAX (231)727-6904
                      RE:    Michigan Uniform Video Service Local Franchise Agreement
Finance
(231)724-6713
FAX (231)724-6768
                      Dear Mr. Gardner,
Fire Department
(231)724-6792
                      We have received the Uniform Video Service Local Franchise Agreement ("Uniform
FAX (231)724-6985
                      Franchise") application you submitted on behalf of Comcast of Muskegon ("Comcast"). We
Income Tax
                      appreciate Comcast's continued commitment to serving its customers in the City. However,
(231)724-6770
FAX (231)724-6768     we have determined that the application as submitted is incomplete, and that it should be
                      denied for the reasons stated below.1 We invite you to meet with us to discuss the items
Info. Technology
(231)724-4126
                      below and then to re-submit a Uniform Franchise application that addresses these issues.
FAX (231)722-4301

Inspection Services
                      First, while the City has no objection to the use of the Uniform Franchise as the base
(231)724-6715
                      document, we would like to see a few relatively minor amendments made to it to address
FAX (231)728-4371

                      local needs. These items of local concern are as follows:
Leisure Services
(231)724-6704
FAX (231)724-1196
                                 Connections to City facilities,
Mayor’s Office
(231)724-6701
FAX (231)722-1214                Extension of the system to the marina.
Planning/Zoning
(231)724-6702
                      As noted in the "Instructions" accompanying the application you submitted, amendments to
FAX (231)724-6790
                      the Uniform Franchise such as these may be accomplished via an "Attachment 2" that the
Police Department
                      provider should complete and submit. Such local variations in the Uniform Franchise are, as
(231)724-6750
                      you know, envisioned in Section 13 of P.A. 480 of 2006 and are also an important part of the
FAX (231)722-5140

                      Federal Cable Act's renewal process. It is our belief that these items of local concern can be
Public Works
(231)724-4100         easily addressed in a couple brief provisions that would be attached via an Attachment 2 to
FAX (231)722-4188
                      an approved Uniform Franchise. We encourage you to contact us at your earliest
Treasurer
(231)724-6720
FAX (231)724-6768            1
                                We note that the State of Michigan has determined that a city may, in compliance
                      with State law, deny a Uniform Franchise Application, and the federal courts have affirmed
Water Billing
(231)724-6718
                      this position. City of Detroit v. Michigan and Comcast of Detroit, 879 F. Supp. 2d 680, 697-
FAX (231)724-6768
                      698 (E.D. Mich., 2012).
Water Filtration
(231)724-4106
                                 City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
FAX (231)755-5290
                                                        http://www.shorelinecity.com
convenience to set up a meeting at which we can discuss these items and work out some
mutually agreeable language to address them.

In a second, and admittedly lesser concern, the City notes that Comcast has completed the
blanks in Section VIII of the Uniform Franchise application it submitted. This is a violation
of the MPSC's May 3, 2007 Order in case no. U-15281, which affirms that "[t]he
Commission's January 30, 2007 order in Case No. U-15169 provides that it is the
responsibility of the franchising entity to fill in the applicable franchise fee or PEG fee in a
franchise agreement. Similarly, Section VIII(A)(1)-(3) of the Commission's January 30,
2007 order require that the franchising entity enter the applicable PEG fee amount paid to the
incumbent provider." Order in U-15281, p. 3. We would therefore encourage you, when you
re-submit your Uniform Franchise application with appropriate amendments, to leave the
franchise fee and PEG fee amounts blank in compliance with MPSC requirements.

We look forward to speaking with you soon about amendatory language to your franchise
application.


Very truly yours,




Bryon L. Mazade
City Manager




cc: John W. Pestle and Tim Lundgren, Varnum, LLP




           City of Muskegon, 933 Terrace Street, P.O. Box 536, Muskegon, MI 49443-0536
                                  http://www.shorelinecity.com

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