View the PDF version Google Docs PDF Viewer
CITY OF MUSKEGON
CITY COMMISSION MEETING
MARCH 27, 2012
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
CALL TO ORDER:
PRAYER:
PLEDGE OF ALLEGIANCE:
ROLL CALL:
HONORS AND AWARDS:
INTRODUCTIONS/PRESENTATION:
A. Social Justice Committee.
CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. 2012-13 Healthcare & Wellness Program. FINANCE
C. Request to Submit a Grant Application to Reconstruct Getty Street from
Evanston to Apple Avenue. ENGINEERING
D. Sale of Buildable Vacant Lot at 1660 7th Street. PLANNING &
ECONOMIC DEVELOPMENT
E. Sale of Buildable Vacant Lot at 354 McLaughlin Avenue. PLANNING &
ECONOMIC DEVELOPMENT
PUBLIC HEARINGS:
A. Request for the Establishment of an Industrial Development District at
444 Irwin Avenue. PLANNING & ECONOMIC DEVELOPMENT
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
NEW BUSINESS:
A. DDA On-Premise Liquor License for Curry Kitchen. PLANNING &
ECONOMIC DEVELOPMENT
B. Water Rate Increase. FINANCE
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 Becker, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or TDD:
(231) 724-4172.
Date: March 27, 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 March 12th
Commission Worksession Meeting and the March 13th City Commission
Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
City of Muskegon
City Commission Worksession
March 12, 2012
City Commission Chambers
5:30 PM
MINUTES
2012-14
Present: Commissioners Warmington, Gawron (arrived 5:37 p.m.), Hood, Wierengo, German,
Turnquist, and Spataro.
Absent: None.
Solid Waste Proposal.
This is a request to begin negotiations with Republic Services (Allied Waste) on a contract
extension. Republic Services submitted a letter proposing an extension to our current solid waste
contract which is slated to expire at the end of 2012.
This item has been placed on the March 13, 2012 agenda for Commission consideration.
Restriction to Lawn Parking.
Vice Mayor Gawron questioned terrace parking. Individuals with alley access are parking on the
terrace onto sidewalks and front yards as well as adjacent property owner’s terrace.
Motion by Commissioner Spataro, seconded by Commissioner Turnquist to suspend on-
street parking restrictions as of March 17 at 12:01 a.m. for the rest of the season and direct
staff to review the ordinance for next year.
Ayes: Hood, Spataro, German, Gawron, Wierengo, Turnquist, and Warmington.
Nays: None.
MOTION PASSES
Anti-Discrimination Policy Request.
Roberta King, 3393 Fulton Avenue, Muskegon, is requesting that the City add a provision to
protect lesbian, gay, bi-sexual, and transgender (LGBT) individuals to its anti-discrimination
language.
Aaron Wilson, 1233 Dunham, Grand Rapids, supports the proposed changes to the anti-
discrimination language.
Gloria White-Gardner, 3742 Fairview Drive, Norton Shores, supports the proposed changes.
Staff was directed to write the correct language to add to the city’s policy and take to the City
Commission for approval.
Adjournment.
Motion by Commissioner Hood, seconded by Commissioner German to adjourn at 6:48
p.m.
MOTION PASSES
____________________________
Ann Marie Cummings, MMC
City Clerk
CITY OF MUSKEGON
CITY COMMISSION MEETING
MARCH 13, 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, March 13, 2012.
Mayor Warmington opened the meeting with a prayer from Vice Mayor
Stephen Gawron after which the Commission and public recited the Pledge of
Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioners Lawrence Spataro, Willie German, Sue Wierengo, Byron Turnquist,
and Eric Hood, City Manager Bryon Mazade, City Attorney John Schrier, and
City Clerk Ann Marie Cummings.
2012-15 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the February 28th City
Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. National Bike to Work Week Proclamation. CITY CLERK
SUMMARY OF REQUEST: The City Commission is asked to adopt the
proclamation supporting National Bike to Work Week May 14 through May 18,
2012.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the proclamation.
C. Approval of Amendment to Norton Shores CDBG Contract with the City
1
of Muskegon. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the amendment to the contract for City of
Norton Shores’ two-year agreement with the City of Muskegon for CDBG
Administration.
After an Environment Review audit by HUD, HUD has requested the agreement
between the City of Norton Shores and the City of Muskegon be amended to
include compliance with National Environmental Policy Act of 1969 (NEPA) and
Part 58 for the Environmental Certification compliance forms.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the amendment to the contract by the
City of Norton Shores for the two-year agreement with the City of Muskegon for
CDBG Administration to include compliance with NEPA and Part 58 for the
Environmental Certification compliance forms.
COMMITTEE RECOMMENDATION: The Norton Shores City Council approved the
amendment at their February 21st meeting.
D. Lakeshore Trails Improvement Fund Agreement. FINANCE
SUMMARY OF REQUEST: The Lakeshore Trails Improvement Fund was established
as a small “grow-a-fund” entity at the Community Foundation several years ago
using taxpayer-designated income tax refunds as seed money. The fund has
now grown to a level (>$10,000) at which it qualifies to be managed and
invested as a full-fledged endowment fund by the Foundation.
The organization endowment fund agreement allows this transition to take
place. The agreement has been reviewed by staff and the City Attorney.
FINANCIAL IMPACT: There is no immediate financial impact on the City. Longer-
term, it is hoped that the fund will continue to grow and someday be used to
help fund repairs and enhancements to the Trail – costs that would otherwise be
borne by the City.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorization for the Mayor to sign the agreement.
E. Water Filtration Plant East Clarifier Solids Pump Replacement. PUBLIC
WORKS
SUMMARY OF REQUEST: Authorize staff to purchase a Gorman-Rupp solids pump
from the lowest responsible bidder Dubois-Cooper Associates, Inc. and contract
with Allied Mechanical Services, Inc. to install for a total cost of $12,410.
FINANCIAL IMPACT: $12,410.
BUDGET ACTION REQUIRED: None.
2
STAFF RECOMMENDATION: Authorize staff to purchase a Gorman-Rupp solids
pump for the Water Filtration Plant East Clarifier sump from Dubois-Cooper
Associates, Inc. for $8,010.
Enter into a contract with Allied Mechanical to install the Gorman-Rupp solids
pump and remove old pump for a cost of $4,400.
F. Solid Waste Proposal. PUBLIC WORKS
SUMMARY OF REQUEST: Authorize staff to begin negotiation with Republic
Services (Allied Waste) on a contract extension. Republic Services submitted the
letter proposing an extension to our current solid waste contract which is slated
to expire at the end of 2012. Staff’s recommendation will be brought back to
you for consideration at a later date.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Authorize staff to negotiate with Republic Services a
possible contract extension.
G. City – MDOT Agreement for Milling and Resurfacing of M-120
(Causeway). ENGINEERING
SUMMARY OF REQUEST: To approve the contract with MDOT for the Milling &
Resurfacing of M-120 (Causeway) from US-31 BR to Northerly City Limits, and to
approve the resolution authorizing the Mayor and City Clerk to sign the
contracts.
FINANCIAL IMPACT: The City’s required participation on this MDOT project is
expected to be around $15,800.
BUDGET ACTION REQUIRED: The City’s share of $15,800 will need to be
incorporated into the 2012/2013 CIP budget.
STAFF RECOMMENDATION: Approve the resolution and authorize the Mayor and
Clerk to sign the contracts as well as authorize staff to incorporate this project
into the 2012/2013 budget.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to approve
the Consent Agenda as presented.
ROLL VOTE: Ayes: German, Gawron, Wierengo, Turnquist, Warmington, Hood,
and Spataro
Nays: None
MOTION PASSES
2012-16 PUBLIC HEARINGS:
3
A. Recommendation for Annual Renewal of Liquor Licenses. CITY CLERK
SUMMARY OF REQUEST: To adopt a resolution recommending non-renewal of
those liquor license establishments who are in violation of Section 50-146 and 50-
147 of the Code of Ordinances for the City of Muskegon. These establishments
have been found to be in non-compliance with the City Code of Ordinances
and renewal of their liquor licenses should not be recommended by the City
Commission. If any of these establishments come into compliance by March 22,
2012, they will be removed from this resolution, and recommendation for their
renewal will be forwarded to the Liquor Control Commission.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Adoption of the resolution.
The Public Hearing opened to hear and consider any comments from the
public. Comments were heard from Jen Osborn, 3125 Tule, Grand Rapids,
representing CJ’s on the Beach.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to close the
Public Hearing and adopt the resolution with the removal of Shoreline Inn from
the list.
ROLL VOTE: Ayes: Gawron, Wierengo, Turnquist, Warmington, Hood, Spataro,
and German
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Street lighting on Jefferson and concern of vandalism
reports at Heritage Landing. Off street parking will be rescinded as of Saturday,
March 17, this will be listed on NIXLE.com.
PUBLIC PARTICIPATION: Public comments received.
2012-17 CLOSED SESSION: To Discuss Attorney/Client Information.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to go into
Closed Session to discuss attorney/client information.
ROLL VOTE: Ayes: Wierengo, Turnquist, Warmington, Hood, Spataro, German,
and Gawron
Nays: None
MOTION PASSES
Motion by Commissioner Spataro, second by Commissioner German to come
out of Closed Session.
ROLL VOTE: Ayes: Warmington, Hood, Spataro, German, Gawron, Wierengo,
4
and Turnquist
Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 6:40 p.m.
Respectfully submitted,
Ann Marie Cummings, MMC
City Clerk
5
Date: March 27, 2012
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: 2012-13 Healthcare & Wellness Program
SUMMARY OF REQUEST: It is time to renew the City's healthcare coverage for 2012-13 plan year (6/1/12-
5/31/13). Renewal premiums for the City's current healthcare program have come in at a 7.90% increase over the
current year. Last year we experienced an 8.83% increase and in 2010 the increase was 9.45%. In comparative
terms, the rate increase is moderate as many employers are experiencing double-digit increases. Also, the City’s
healthcare costs remain well below the “hard cap limits” set by PA 152 and remain cost competitive with the
standards set by EVIP for new hires.
For 2012-13, the City will continue to pay the HRA deductible if the employee and spouse complete the four-step
wellness initiative prior to April 30th; non-participants in the wellness program pay the first $500 (single)/ $1,000
(double/family) of the deductible.
FINANCIAL IMPACT: Following is an estimate of gross premium costs for the Priority Health HMO program
compared with the current year:
2012 13 2011 12
Single Double Family Single Double Family
Monthly Premium $ 411.99 $ 926.96 $ 1,112.37 $ 381.84 $ 859.12 $ 1,030.95
Annual Premium 4,943.88 11,123.52 13,348.44 4,582.08 10,309.44 12,371.40
Current # Employees 35 40 134 35 40 134
Total Annual Premium 173,035.80 444,940.80 $ 1,788,690.96 $ 160,372.80 $ 412,377.60 $ 1,657,767.60
2,406,667.56 7.90% 2,230,518.00
Increase
Add: HRA Deductibles Paid by City 140,056.47
Less: Employee Premium Copays (182,471.00)
$ 2,364,253.03
Equals: Employer Cost
PA 152 Hard Cap Limits
$ 5,500.00 $ 11,000.00 $ 15,000.00
192,500.00 440,000.00 2,010,000.00
$ 2,642,500.00
EVIP Standards for New Hires
$ 5,085.22 $ 10,170.85 $ 14,035.73
Most employees currently pay 10% of the above premium costs via payroll deduction. Fire employees will start
paying 10% effective 1/1/13. The contract for Police Patrol is currently unsettled.
BUDGET ACTION REQUIRED: Employee and retiree healthcare costs will be included in the forthcoming
2012-13 budget.
STAFF RECOMMENDATION: Authorize staff to execute documents with Priority Health to renew
healthcare coverage.
1
Date: May 27, 2012
To: Honorable Mayor and City Commission
From: Engineering
RE: Request to Submit a Grant Application to reconstruct:
Getty St. from Evanston to Apple Ave.
SUMMARY OF REQUEST:
Authorize staff to submit a grant application to MDOT for TEDF-F funds to reconstruct
Getty Street from Evanston to Apple Ave. The request is for $375,000 and will require a
match of up to $350,000 which will have to be budgeted for in the spring of 2013 since the
grant application is 2014.
FINANCIAL IMPACT:
A local share of $350,000 match plus engineering costs.
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
Authorize staff to submit the application.
COMMITTEE RECOMMENDATION:
Commission Meeting Date: March 27, 2012
Date: March 20, 2012
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: Sale of Buildable Vacant Lot at 1660 7th St.
SUMMARY OF REQUEST:
To approve the sale of a vacant buildable lot at 1660 7th St (Parcel # 24-205-440-0004-
00) to Theresa Strother, 1640 7th St (adjacent properties). The lot is 101 x 134 ft. and Mrs.
Strother is offering $1,000 plus the fee to register the deed. The City has owned the
property since 1996 and there have been no inquiries for potential construction.
FINANCIAL IMPACT:
The sale of this lot will generate additional tax revenue for the City and will place the
property back on the City’s tax rolls thus relieving the City of continued maintenance costs.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the attached resolution and to authorize both the Mayor and the Clerk to sign
said resolution and deed.
COMMITTEE RECOMMENDATION:
None
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE SALE OF A BUILDABLE LOT AT 1660 7TH ST FOR $1,000.
WHEREAS, Theresa Strother will be allowed to purchase the parcel designated as parcel number 24-205-440-
0004-00, located at 1660 7th St for $1,000; and
WHEREAS, the price for parcel number 24-205-440-0004-00 is set by the City at $1,500, which is 25% of the
True Cash Value (TCV) listed in the City Assessor’s Office; and
WHEREAS, Theresa Strother offered $1,000 for the property so this may be combined with her adjacent
property; and
WHEREAS, the sale would generate additional tax revenue for the City and relieve the City of further
maintenance costs; and
WHEREAS, the sale is not consistent with City policy regarding the disposition of buildable lots, in that, this
property will be combined with the adjacent property located at 1660 7th St and sold for the price of $1,000.
NOW THEREFORE BE IT RESOLVED, that parcel number 24-205-440-0004-00, located at 1660 7th St be sold
to Theresa Strother for $1,000.
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 5 BLK 261
Adopted this 27th day of March 2012
Ayes:
Nays:
Absent
By: _________________________
Stephen J. Warmington
Mayor
Attest: ________________________
AnnCummings, MMC
City Clerk
2
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City
Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on March 27,
2012.
By: ________________________
Ann Cummings, MMC
City Clerk
3
The owner of 1640 7th St. would like to purchase the adjacent buildable City-owned lot at 1660 7th St. They do
not plan on building on the property, however, there is a lot of unwanted traffic on this lot with people hanging
out late at night and also dumping trash and spraying graffiti. Mrs. Strother plans on fencing off the property if
she purchases it.
The City purchased this property from the State on 5/20/1996 and spends roughly $250 per year on
maintenance. The asking price is $1,500 and Mrs.Strother has offered $1,000. Staff feels that is an acceptable
price.
1660 7th St 1660 & 1640 7th St
Aerial Photo. 1660 7th in blue and 1640 7th in red
4
Commission Meeting Date: March 27, 2012
Date: March 20, 2012
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: Sale of Buildable Vacant Lot at 354 McLaughlin
Ave.
SUMMARY OF REQUEST:
To approve the sale of a vacant buildable lot at 354 McLaughlin Ave (Parcel # 24-205-261-
0005-00) to Maria Jaimes, 1242 Spring St (adjacent properties). The lot is 67 x 132 ft. and
Mrs. Jaimes is offering $1,000 plus the fee to register the deed. The City has owned the
property since 2006 and there have been no inquiries for potential construction.
FINANCIAL IMPACT:
The sale of this lot will generate additional tax revenue for the City and will place the
property back on the City’s tax rolls thus relieving the City of continued maintenance costs.
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
To approve the attached resolution and to authorize both the Mayor and the Clerk to sign
said resolution and deed.
COMMITTEE RECOMMENDATION:
None
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING THE SALE OF A BUILDABLE LOT AT 354 MCLAUGHLIN AVE FOR $1,000.
WHEREAS, Maria Jaimes will be allowed to purchase the parcel designated as parcel number 24-205-261-
0005-00, located at 354 McLaughlin Ave for $1,000; and
WHEREAS, the price for parcel number24-205-261-0005-00 is set by the City at $1,500, which is 25% of the
True Cash Value (TCV) listed in the City Assessor’s Office; and
WHEREAS, Maria Jaimes offered $1,000 for the property so this may be combined with her adjacent property;
and
WHEREAS, the sale would generate additional tax revenue for the City and relieve the City of further
maintenance costs; and
WHEREAS, the sale is not consistent with City policy regarding the disposition of buildable lots, in that, this
property will be combined with the adjacent property located at 1242 Spring St and sold for the price of $1,000.
NOW THEREFORE BE IT RESOLVED, that parcel number 24-205-261-0005-00, located at 354 McLaughlin
Ave be sold to Maria Jaimes for $1,000.
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 5 BLK 261
Adopted this 27th day of March 2012
Ayes:
Nays:
Absent
By: _________________________
Stephen J. Warmington
Mayor
Attest: ________________________
AnnCummings, MMC
City Clerk
2
I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City
Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on March 27,
2012.
By: ________________________
Ann Cummings, MMC
City Clerk
3
The owner of 1242 Spring St. would like to purchase the adjacent buildable City-owned lot at 354 McLaughlin
Ave. They do not plan on building on the property, however, there is a lot of unwanted traffic on this lot with
people hanging out late at night and also dumping trash. Mrs. Jaimes plans on fencing off the property if she
purchases it.
The City purchased this property from the State on 2/28/2006 and spends roughly $325 per year on
maintenance. The asking price is $1,500 and Mrs. Jaimes has offered $1,000. Staff feels that is an acceptable
price.
354 McLaughlin Ave 1242 Spring St
Aerial Photo. 354 McLaughlin in blue and 1242 Spring in red
4
Commission Meeting Date: March 27, 2012
Date: March 21, 2012
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Public Hearing - Request for the establishment of an Industrial
Development District at 444 Irwin Ave.
SUMMARY OF REQUEST:
Pursuant to Public Act 198 of 1974, as amended, Graphics House Sports Promotions, Inc
has requested to establish an Industrial Development District at 444 Irwin Ave. The
company has recently purchased the property and will eventually be making improvements
to real and personal property on site. The establishment of the district will allow the
company to become eligible for Industrial Facilities Tax Abatements (IFTs).
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approval of the establishment of the Industrial Development District.
COMMITTEE RECOMMENDATION:
None
3/21/2012
Resolution No. _______
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING AN INDUSTRIAL DEVELOPMENT DISTRICT AT 444 IRWIN AVE,
MUSKEGON, MI 49442
GRANPHICS HOUSE SPORTS PROMOTIONS, INC
WHEREAS, pursuant to PA 198 of 1974, as amended, the City Commission of the City of Muskegon has the
authority to establish an Industrial Development Districts within the City of Muskegon; and
WHEREAS, Graphics House Sports Promotions, Inc has petitioned the City Commission of the City of
Muskegon to establish an Industrial Development District on its property located in the City of Muskegon
hereinafter described; and
WHEREAS, construction, acquisition, alteration, or installation of a proposed facility has not commenced at the
time of filing the request to establish this district; and
WHEREAS, written notice has been given by mail to all owners of real property located within the district, and to
the public by newspaper advertisement in the Muskegon Chronicle and public posting of the hearing on the
establishment of the proposed district; and
WHEREAS, on March 27, 2012 a public hearing was held at which all owners of real property within the
proposed Industrial Development District and all residents and taxpayers of the City of Muskegon were afforded
an opportunity to be heard thereon; and
WHEREAS, the City Commission of the City of Muskegon deems it to be in the public interest of the City of
Muskegon to establish the Industrial Development District as proposed.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Muskegon that the following
described parcel of land situated in the City of Muskegon, Muskegon County, and State of Michigan, to wit:
CITY OF MUSKEGON REVISED PLAT OF 1903 THAT PART OF BLK 96 & VAC NIMS ST DESC AS
COM AT SW COR OF SD BLK FOR POB TH N ALG W LN OF SD BLK 330 FT TH E AT RT ANGLESTO
W LN 235.86 FT TO NELY LN OF BLK 96 & SWLY LN OF SD VAC NIMS ST TH N 48D 47M
is established as an Industrial Development District pursuant to the provisions of PA 198 of 1974, as amended,
to be known as Irwin Industrial Development District.
Adopted this 27th Day of March 2012.
Ayes:
Nays:
Absent:
3/21/12
BY: __________________________________
Stephen J. Warmington
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 March 27, 2012.
______________________________
Ann Cummings
Clerk
3/21/12
Commission Meeting Date: March 27, 2012
Date: March 20, 2012
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: DDA On-Premise Liquor License for Curry
Kitchen.
SUMMARY OF REQUEST: To approve the attached Resolution
approving a Downtown Development Authority On-Premise Liquor
License for Curry Kitchen. The Liquor Control Code allows for
additional liquor licenses within Downtown Development Authority
Districts under certain conditions.
FINANCIAL IMPACT: Approval of the Liquor License will allow for a
new restaurant in the downtown area which should result in increased
revenue for the City.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the attached resolution.
COMMITTEE RECOMMENDATION: None.
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
RESOLUTION NO. _________
A resolution concerning the issuance of a Downtown Development Authority
District On-Premises Liquor License pursuant to 436.1521a(1)(b) of the Michigan
Compiled Laws.
The City Commission of the City of Muskegon hereby RESOLVES:
Recitals
1. Curry Kitchen, Inc. has applied for a Downtown Development Authority District
On-Premises Liquor License for the premises at 1141 Third Street, which is
located within an area established by the City Commission as a redevelopment
project area pursuant to 436.1521a(1)(b) of the Michigan Compiled Laws.
2. It is required that the City Commission approve a specific applicant, at a specific
location “ABOVE ALL OTHERS”.
3. This resolution was approved at the regular meeting of the City Commission on
March 27, 2012.
City Commission Findings
The City Commission is satisfied that:
1. That the applicant has sufficiently demonstrated a commitment for a capital
investment of not less than $75,000 for the build-out and improvements of the
building that will house the licensed premises, which amounts shall be expended
before the issuance of the license.
2. That the licensed business shall be engaged in dining, entertainment or recreation,
that is open to the general public, with a seating capacity of not less than 50
persons.
NOW, THEREFORE, THE CITY COMMISSION RESOLVES:
The City Commission deems it to be in the best interest of the City of Muskegon
to approve the application of Curry Kitchen, Inc., for a Downtown Development
Authority District On-Premises Liquor License for the premises at 1141 Third
Street, pursuant to 436.1521a(1)(b) of the Michigan Compiled Laws, and
recommends to the Michigan Liquor Control Commission the issuance of said
requested license “ABOVE ALL OTHERS”.
Adopted this 27th day of March, 2012.
AYES: ______________________________________________________
NAYES: ______________________________________________________
ABSENT: ______________________________________________________
By: ________________________
Stephen J. Warmington
Its Mayor
By: ________________________
Ann Cummings, MMC
Its Clerk
Date: March 27, 2012
To: Honorable Mayor and City Commissioners
From: Finance Department
RE: Water Rate Increase
SUMMARY OF REQUEST: City water rates were last increased January 1st 2005. The economic downturn
has caused water usage to drop even while costs for electricity, treatment chemicals and labor have risen steadily
over this period. In FY 2011, the City’s water fund experienced a $330,504 net loss – the third consecutive year of
losses (including the shortened fiscal period ended 6/30/10). Accordingly, staff is recommending a 10% water rate
increase (from $1.40/HCFT to $1.54/HCFT) effective July 1, 2012.
Attached are documents highlighting the need for this rate increase:
x a three-year history and financial ratio analysis of water fund operations and,
x a financial projection showing the expected impact of the rate increase.
FINANCIAL IMPACT: The rate increase will generate an estimated $410,000 in additional water revenue
annually. The following table compares existing and proposed rates to other area communities and provides an
estimate of the monthly impact on typical households:
7,500 Gallons/month 15,000 Gallons/month
Rate Measure Commodity Fixed Total Commodity Fixed Total
Muskegon (Current) 1.40 100 Cu. Ft. 14.00 14.00 28.00 28.00
Whitehall 2.00 1000 Gal. 15.00 15.00 30.00 30.00
Muskegon (Proposed) 1.54 100 Cu. Ft. 15.40 15.40 30.80 30.80
Grand Haven 1.86 1000 Gal. 13.98 7.00 20.98 27.96 10.32 38.28
Muskegon Hts. 1.98 1000 Gal. 14.85 7.79 22.64 29.70 7.79 37.49
Montague 2.25 1000 Gal. 16.88 7.00 23.88 33.75 7.00 40.75
Grand Rapids 1.72 100 Cu. Ft. 17.20 10.17 27.37 34.40 10.17 44.57
Norton Shores 3.55 1000 Gal. 26.63 8.22 34.85 53.25 8.22 61.47
North Muskegon 3.10 100 Cu. Ft. 31.00 8.33 39.33 62.00 8.33 70.33
Roosevelt Park 3.38 1000 Gal. 25.35 24.93 50.28 50.70 24.93 75.63
BUDGET ACTION REQUIRED: Revenue estimates included in the forthcoming 2012-13 budget will be
based on the new rate structure.
STAFF RECOMMENDATION: Approval of the attached increasing water rates effective 7/1/2012.
1
CITY OF MUSKEGON
Resolution No. _____
A Resolution amending the general fee resolution of the City.
RECITALS
A review of the water rates has been undertaken by staff. City staff recommends and the City Commission has
determined that an increase in the rates for water service is justified in the opinion of the City Commission.
THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION:
1. For service provided after July 1, 2012, the rate for water shall be increased 10% from $1.40 per hundred cubic feet
to $1.54 per hundred cubic feet.
2. All fixed monthly charges for fire line service shall be increased 10% effective July 1, 2012.
This resolution passed.
Ayes_______________________
Nays_______________________
CITY OF MUSKEGON
By___________________________
Ann Marie Cummings, Clerk
CERTIFICATE
This resolution was adopted at a meeting of the City Commission, held on ___________, 2012. The meeting was
properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
By___________________________
Ann Marie Cummings, Clerk
9/18/97 2
3/20/2012
CITY OF MUSKEGON
ENTERPRISE FUND RATIO ANALYSIS
2009 - FY2011
WATER FUND
2009 2010* 2011
I. BALANCE SHEET DATA:
ASSETS
CURRENT ASSETS
Cash and temporary investments $ 2,301,294 $ 2,456,123 $ 2,913,169
Receivables
Accounts 920,727 1,010,843 910,827
Prepaid insurance 14,048 63,999 58,510
Special assessments - - -
Inventory 92,189 97,448 97,501
Due from other governments 63,215 64,580 57,812
Due from other funds - - -
3,391,473 3,692,993 4,037,819
PROPERTY AND EQUIPMENT - AT COST
Capital assets (net of depreciation) 44,513,346 43,655,150 41,974,151
44,513,346 43,655,150 41,974,151
Less accumulated depreciation - - -
44,513,346 43,655,150 41,974,151
Land and improvements - - -
Deferred debt expense 59,152 134,250 108,619
44,572,498 43,789,400 42,082,770
RESTRICTED ASSETS
Cash and securities 672,000 672,000 672,000
672,000 672,000 672,000
OTHER ASSETS
Wastewater Facility Rights - - -
- - -
$ 48,635,971 $ 48,154,393 $ 46,792,589
LIABILITIES
CURRENT LIABILITIES
Current maturities of long-term debt $ 1,168,600 $ 1,214,000 $ 1,247,000
Accounts payable 113,374 56,288 166,092
Due to other funds - - -
Due to other governments 25,475 25,475 99,396
Accrued liabilities 124,509 110,293 142,005
1,431,958 1,406,056 1,654,493
NON-CURRENT LIABILITIES
Advances from other funds - - -
Bonds and other obligations payable 17,037,309 16,655,787 15,376,050
17,037,309 16,655,787 15,376,050
NET ASSETS
Invested in capital assets, net of related debt 26,477,964 25,902,015 25,451,943
Restricted for debt service 672,000 672,000 672,000
Unrestricted 3,016,740 3,518,535 3,638,103
30,166,704 30,092,550 29,762,046
$ 48,635,971 $ 48,154,393 $ 46,792,589
* 2010 data is for six-months. This was a transition period as the City changed its fiscal year. 1
3/20/2012
CITY OF MUSKEGON
ENTERPRISE FUND RATIO ANALYSIS
2009 - FY2011
WATER FUND
2009 2010* 2011
II. INCOME STATEMENT DATA:
OPERATING REVENUES
Charges for services $ 5,686,529 $ 2,795,713 $ 5,221,839
Other revenues 197,301 95,456 232,921
5,883,830 2,891,169 5,454,760
OPERATING EXPENSES
Operating and administrative 516,365 259,451 541,950
Wastewater treatment - - -
Filtration plant operation 1,409,738 666,691 1,367,569
Water distribution 1,572,160 649,133 1,385,011
Bad debts - - -
Depreciation 1,974,113 1,074,308 2,119,038
5,472,376 2,649,583 5,413,568
Operating profit (loss) 411,454 241,586 41,192
OTHER (INCOME) OR DEDUCTIONS
Interest income 22,483 13,566 13,025
Gain on sale of fixed assets - - -
State grant - - -
Interest expense (576,789) (329,306) (404,795)
(554,306) (315,740) (391,770)
Income (loss) before
operating transfers and extraordinary loss (142,852) (74,154) (350,578)
Capital contribution - - 20,074
Operating transfers in (out) - - -
Net income (loss) before extraordinary loss (142,852) (74,154) (330,504)
Extraordinary loss/claim - - -
NET INCOME (LOSS) (142,852) (74,154) (330,504)
Net assets at start of year 30,309,556 30,166,704 30,092,550
Equity transfer in (out) - - -
Net assets at end of year $ 30,166,704 $ 30,092,550 $ 29,762,046
* 2010 data is for six-months. This was a transition period as the City changed its fiscal year. 2
3/20/2012
CITY OF MUSKEGON
ENTERPRISE FUND RATIO ANALYSIS
2009 - FY2011
WATER FUND
2009 2010* 2011
III. FINANCIAL RATIOS
INDICATORS OF SOLVENCY
Debt/Equity Ratio 0.61 0.60 0.57
This ratio looks at current and long-term debt in comparison to the retained earnings of the
fund. If the ratio is greater than 1, it indicates the enterprise fund is using more external long-
term financing than internal financing.
Debt Ratio (Total Liabilities/Total Assets) 37.97% 37.51% 36.40%
A debt ratio of greater than 1 indicates that a company has more debt than assets,
meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.
Times Interest Earned 0.71 0.73 0.10
This ratio indicates how many times the city can cover interest costs with operating profits.
INDICATORS OF LIQUIDITY
Net Working Capital $ 1,959,515 $ 2,286,937 $ 2,383,326
be stable or growing.
Net Working Capital/Assets 4.03% 4.75% 5.09%
This ratio compares net working capital to the total assets of the fund.
Current Ratio 2.37 2.63 2.44
This ratio compares current assets to current liabilities and measures the utility's ability to meet
its short-term obligations from readily 2.00 is considered minimal for most enterprise
operations.
Cash Ratio 1.61 1.75 1.76
p g
payment. A ratio of 1.00 or greater is ideal.
liabilities that could be paid
Current Assets/Total Liabilities 0.18 0.20 0.24
This ratio indicates the extent to which the utility could liquidate all outstanding liabilities (long-
term and short-term) with readily available assets. A ratio approaching 1.00 indicates an
extremely strong operation.
FUNDS MANAGEMENT RATIOS
Receivables/Sales 15.65% 34.96% 16.70%
This ratio indicates the percentage of total sales that have are uncollected as of the date of
the balance sheet. The lower ratio the better, indicating efficient collection procedures.
Days Sales in Receivables 57 128 61
This measure indicates the number of days revenues represented by receivables. Again, a
low number indicates effient collection procedures.
Payables/Operating Expenses 3.24% 3.57% 5.04%
Days Operating Expenses in Payables g p 12 13 18
yp py
A low number indicates efficient inventory and disbursement procedures.
Sales/Fixed Assets 13.20% 6.60% 12.96%
This ratio indicates the percentage of which annual sales is to the capital investment in the
utility system (less depreciation).
Operating ratio 93.01% 91.64% 99.24%
This ratio measures the percentage of operating revenues consumed by operating expenses.
A ratio greater than 100% indicates unprofitable operations.
PROFITABILITY RATIOS
Return on Sales 6.99% 8.36% 0.76%
This measure indicates the percent of total sales revenue which was not needed to cover
operating expenses for the period and which can be considered operating"profit" for the
period.
Return on Total Assets -0.29% -0.15% -0.71%
This ratio measures the percent return on total assets of the system.
Return on Equity -0.47% -0.25% -1.11%
This ratio measures the percent return on the City's total investment in the system.
Operating Profit Margin 6.99% 8.36% 0.76%
Operating margin is a measurement of what proportion of a company's revenue is left over
after paying for costs of production such as wages, raw materials, etc. A healthy operating
margin is required to be able to pay fixed costs, such as interest.
* 2010 data is for six-months. This was a transition period as the City changed its fiscal year. 3
2010-11 2011-12 2012-13 2013-14 2014-15
1. Actual and Projected Flows
2,066,764 2,087,432 2,108,306 2,129,389 2,150,683
City
334,075 340,757 347,572 354,523 361,614
Muskegon County
177,988 179,768 181,566 183,381 185,215
Roosevelt Park
216,240 218,402 220,586 222,792 225,020
North Muskegon
336,178 342,902 349,760 356,755 363,890
Muskegon Township
5,000 5,050 5,101 5,152 5,203
Miscellaneous Outside
TOTAL 3,136,245 3,174,310 3,212,890 3,251,992 3,291,625
* Assumed Annual Increases:
City: 1%
Muskegon County Northside: 2%
Roosevelt Park: 1%
North Muskegon: 1%
Muskegon Township: 2%
Norton Shores: 1%
Miscellaneous Outside: 1%
2. Debt Service Requirements
Date of Issue: 4/1/10
$5,995,000
Interest Payable 211,995 184,088 172,088 153,788 136,088
Principal Payable 580,000 600,000 610,000 640,000 660,000
Total Principal and Interest 791,995 784,088 782,088 793,788 796,088
Date of Issue: 3/2/04
$13,900,000
Interest Payable 239,328 226,100 212,606 198,847 184,769
Principal Payable 615,000 630,000 640,000 655,000 670,000
Total Principal and Interest 854,328 856,100 852,606 853,847 854,769
1,646,323 1,640,188 1,634,694 1,647,635 1,650,857
Total Debt Service
3. Actual and Projected Commodity Revenues
Rate $ 1.40 $ 1.40 $ 1.54 $ 1.54 $ 1.54
2,893,470 2,922,404 3,246,791 3,279,259 3,312,052
City
Muskegon County
584,631 596,324 669,075 682,457 696,106
Northside
336,397 339,761 349,514 353,009 356,539
Roosevelt Park
408,694 412,781 458,599 463,185 467,817
North Muskegon
635,376 648,084 727,150 741,693 756,527
Muskegon Township
14,000 14,140 15,710 15,867 16,025
Miscellaneous Outside
TOTAL 4,872,568 4,933,494 5,466,839 5,535,470 5,605,066
2010-11 2011-12 2012-13 2013-14 2014-15
4. Actual and Projected Capital Projects
Elevated Tank - Marshall &
185,000
Roberts, Interior Painting 4,207 - - -
Water Main Replacement
Project, various locations &
100,000
2" & 4" Mains replacement 0 - - -
70,000
Laketon, Henry to Park 0 - - -
Getty Street, Keating to
31,000
Laketon (STP) 0 - - -
Getty St., Laketon to
225,000
Evanston 0 - - -
40,000
Isabella, Peck to Terrace 0 - - -
High Service Switchgear
175,000
Repairs & Upgrades 0 - - -
10,000
Terrace, Apple to Western 0 - - -
GIS Update and
30,000
Maintenance 29,225 - - -
90,000
Mason, Sixth to Fifth 3,034 - - -
Inspections, plans, &
specs. - 3 elev. tanks, Plant
clearwell, and Harvey
0
reservoir - - - -
40,319
Laketon, Barclay to Henry - - - -
Water Main Replacement
Project, various locations &
2" & 4" Mains replacement - - - -
Laketon, Henry to Park - - - -
Getty Street, Keating to
106,344
Laketon (STP) - - - -
Getty St., Laketon to
Evanston 1,333 - - - -
Isabella, Peck to Terrace 123,666 - - - -
Viridian Drive/Terrace Point
25,654
Dr. water looping - - - -
McGraft, Ruddiman to
Montgomery - - - -
Leahy, Laketon to Larch - - - -
White/Scott from Wood to
4,153
Oak Street - - - -
Other 74,473 - - - -
Blasting and painting
piping in valve vaults - elev.
tanks (2) & Harvey booster
50,000
station - - - -
Boltwood, Beach to Beach
150,000
(2100') - - - -
Drying bed roof (one-bed
30,000
trial) - - - -
2010-11 2011-12 2012-13 2013-14 2014-15
Estes, Lakeshore Dr. to Fair
125,000
(850') - - - -
Grand, Division to Franklin
10,000
(1100') - - - -
200,000
Houston, Third to ninth - - - -
Replace intake chemical
225,000
application line - - - -
Terrace, Laketon to Keating
20,000
(1500') - - - -
1937 Headworks roof
250,000
replacement - - - -
Barclay, Southern to
10,000
Michigan (1200') - - - -
Fifth St., Laketon to Dale,
90,000
(800') - - - -
Larue, Minor to Lakeshore
65,000
Dr. (650') - - - -
Palmer, Laketon to
250,000
Southern (2400') - - - -
Replace filter drain valves -
200,000
1937 filters - - - -
Wash water pump motor &
elec. replacement to VFD's
200,000
(3) - - - -
Additional remote site
35,000
cameras & access pads - - - -
Crowley, Pulaski to Barney
60,000
(600'), Gravel - - - -
Distribution system
30,000
reliability study - - - -
Replace headworks
300,000
transformer (1964 unit) - - - -
TOTAL 412,408 956,000 810,000 1,065,000 425,000
5. Actual and Projected Operating Costs
Administration
Salaries & Benefits - - - - -
Operating Supplies - - - - -
541,950
Contractual Services 536,007 536,007 536,007 536,007
27,999
Other Expenses 2,000 2,000 2,000 2,000
Capital Outlays 0 0 0 0
Other Financing Uses 0 0 0 0
569,949 538,007 538,007 538,007 538,007
Maintenance
816,927
Salaries & Benefits 768,795 768,795 768,795 768,795
190,809
Operating Supplies 160,260 160,260 160,260 160,260
299,637
Contractual Services 446,417 400,000 400,000 400,000
66,107
Other Expenses 53,230 53,230 53,230 53,230
11,531
Capital Outlays 16,500 16,500 16,500 16,500
Other Financing Uses 0 0 0 0
1,385,011 1,445,202 1,398,785 1,398,785 1,398,785
2010-11 2011-12 2012-13 2013-14 2014-15
Filtration
590,491
Salaries & Benefits 655,881 655,881 655,881 655,881
232,984
Operating Supplies 275,095 275,095 275,095 275,095
462,880
Contractual Services 615,970 615,970 615,970 615,970
1,153
Other Expenses 2,600 2,600 2,600 2,600
108,567
Capital Outlays 45,300 45,300 45,300 45,300
Other Financing Uses 0 0 0 0
1,396,075 1,594,846 1,594,846 1,594,846 1,594,846
TOTAL 3,351,035 3,578,055 3,531,638 3,531,638 3,531,638
6. Actual and Projected Reserves
672,000 672,000 672,000 672,000 672,000
Required Debt Reserve
7. Other Revenues
178,394 170,000 170,000 170,000 170,000
Township Maintenance
145,000 145,000 145,000 145,000
Cell Phone Tower Leases 143,269
150,000 150,000 150,000 150,000
Miscellaneous Services 185,598
80,000 80,000 80,000 80,000
Penalties 82,592
20,000 20,000 20,000 20,000
Interest 13,025
80,000 80,000 80,000 80,000
All Other 86,090
TOTAL 688,968 645,000 645,000 645,000 645,000
SUMMARY
Commodity Revenues $ 4,872,568 $ 4,933,494 $ 5,466,839 $ 5,535,470 $ 5,605,066
Other Revenues 688,968 645,000 645,000 645,000 645,000
Total Revenues 5,561,536 5,578,494 6,111,839 6,180,470 6,250,066
Debt Service 1,646,323 1,640,188 1,634,694 1,647,635 1,650,857
Capital Projects 412,408 956,000 810,000 1,065,000 425,000
Operating Costs 3,351,035 3,578,055 3,531,638 3,531,638 3,531,638
Total Costs 5,409,766 6,174,243 5,976,332 6,244,273 5,607,495
151,770 (595,749) 135,507 (63,803) 642,571
Ending Balance 3,585,169 2,989,420 3,124,927 3,061,124 3,703,695
Required Reserves (672,000) (672,000) (672,000) (672,000) (672,000)
$ 2,913,169 $ 2,317,420 $ 2,452,927 $ 2,389,124 $ 3,031,695