City Commission Packet 10-13-2009

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  CITY OF MUSKEGON
   CITY COMMISSION MEETING
                 OCTOBER 13, 2009
 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. SECOND READING: Amendment to the Zoning Ordinance – Wind
     Turbines. PLANNING & ECONOMIC DEVELOPMENT
  C. SECOND READING: Amendment to the Zoning Ordinance – Wind
     Turbine Facilities. PLANNING & ECONOMIC DEVELOPMENT
  D. SECOND READING: Amendment to the Zoning Ordinance – Definitions.
     PLANNING & ECONOMIC DEVELOPMENT
  E. Liquor License Request for PCJ Enterprises, LLC, 435 & 441 W. Western.
     CITY CLERK
  F. Marshall Street Elevated Storage Tank Control Panel Relocation and
     Electrical Service Upgrade. WATER FILTRATION
  G. Request to     Amend     Encroachment       Agreement    #2000-112(j).
     ENGINEERING
  H. Amendment to the Commercial Rehabilitation Certificate Resolution for
     971 Washington. PLANNING & ECONOMIC DEVELOPMENT
  I. Sale of Buildable Vacant Lot at 323 Catawba.            PLANNING &
     ECONOMIC DEVELOPMENT
  J. Sale of Buildable Vacant Lot at 1130 1st.   PLANNING & ECONOMIC
     DEVELOPMENT
  K. West Michigan Metropolitan Transportation Plan (WestPlan) Dues,
     October 1, 2009 – September 30, 2010. CITY MANAGER
       L. Emergency Purchase – Sewer Lift Station Pump Replacement. PUBLIC
          WORKS
       M. Purchase of Microfilm Scanner. PUBLIC SAFETY
       N. Hackley Park Former Fence Usage.                                    PLANNING & ECONOMIC
          DEVELOPMENT
       O. Appraisal Services. FINANCE
       P. Special Event Liquor License Request – The Pelto Initiative.                                  LEISURE
          SERVICES
   PUBLIC HEARINGS:
       A. Public Hearing to Review 2008-2009 Consolidated Annual performance
          Evaluation Report (CAPER). COMMUNITY & NEIGHBORHOOD SERVICES
   COMMUNICATIONS:
   CITY MANAGER’S REPORT:
   UNFINISHED BUSINESS:
   NEW BUSINESS:
       A. Consideration of Bids for B-238 Smith Ryerson Park Improvements.
          ENGINEERING
       B. Sewer Rate Adjustment. FINANCE
       C. Concurrence with the Housing Board of Appeals Notice and Order to
          Demolish the Following: PUBLIC SAFETY
            60 E. Walton Avenue
            1409 Nolan Avenue
            1478 Hoyt Street (Area 13)
            1968 Howden Street
            1969 Wood Street
   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:     October 13, 2009
To:       Honorable Mayor and City Commissioners
From:     Ann Marie Becker, City Clerk
RE:       Approval of Minutes




SUMMARY OF REQUEST: To approve the minutes of the Regular
Commission Meeting that was held on Tuesday, September 22, 2009.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                   SEPTEMBER 22, 2009
    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, Michigan at 5:30 p.m., Tuesday, September
22, 2009.
    Mayor Warmington opened the meeting with a prayer from Reverend Marcy
Miller from the Samuel Lutheran 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 Warmington, Vice Mayor Stephen Gawron,
Commissioners Chris Carter, Lawrence Spataro, Sue Wierengo, and Steve
Wisneski, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk
Ann Marie Becker.
   Absent: Commissioner Clara Shepherd (excused).
2009-78 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the September 8th Regular
Commission Meeting, and the September 9th Commission Worksession.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      B. North Passage Roof Replacement. WATER FILTRATION
SUMMARY OF REQUEST: To approve staff to enter into an agreement with Gale
Roofing for the replacement of the north passage roof at the Water Filtration
Plant.
FINANCIAL IMPACT: The cost of the roof replacement is $9,270.
BUDGET ACTION REQUIRED: None, this project is included in the 2009 budget.
STAFF RECOMMENDATION: Staff recommends approval.
      C. Amendment to the Zoning Ordinance – Wind Turbines. PLANNING &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to amend Section 2311, #10 (Accessory
Structures and Buildings) of Article XXIII (General Provisions) to include “Wind
Turbines” as permitted accessory structures.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends amendment of the Zoning
Ordinance to include “Wind Turbines” as permitted accessory structures.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their September 10th meeting. The vote was
unanimous.
(Requires second reading).
      D. Amendment to the Zoning Ordinance – Wind Turbine Facilities.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to amend Section 2310 of Article XXIII (General
Provisions) to add “Wind Turbine Facilities (WTF)”.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends amendment of the Zoning
Ordinance to include “Wind Turbine Facilities (WTF)”.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their September 10th meeting. The vote was
unanimous.
(Requires second reading).
      E. Amendment to the Zoning Ordinance – Definitions.         PLANNING &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to amend Article II (Definitions) to add
definitions for “Wind Turbine” and “Wind Turbine Facility”.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends amendment of the Zoning
Ordinance to include definitions for “Wind Turbine” and “Wind Turbine Facility”.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their September 10th meeting. The vote was
unanimous.
(Requires second reading).
      F. Termination and Release of Sewer Utility Easement at Betten Chevrolet.
         PUBLIC WORKS
SUMMARY OF REQUEST: Request for termination and release of the former Sewer
Utility Easement at Betten Chevrolet located at 2474 Henry Street.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:          Staff recommends Termination and Release of
Easement.
      H. Selection of Installer for Pole Lighting at Clara Shepherd Park. LEISURE
         SERVICES
SUMMARY OF REQUEST: To approve the Leisure Services and Park Department’s
selection of electrical contractor West Shore Electric, 3678 Airline Rd., Muskegon,
MI, to install pole lighting at Clara Shepherd Park at a cost of $9,740.
Public notices were posted, a pre-bid meeting was held with two attendees.
West Shore Electric was the only bid received by the bid opening deadline.
FINANCIAL IMPACT: None, the Public Health Department of Muskegon County
will reimburse the City of Muskegon for all costs related to the project.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval.
COMMITTEE RECOMMENDATION: Installation of lights was approved by the
Commission at the August 11, 2009, meeting.
Motion by Commissioner Carter, second by Commissioner Wisneski to approve
the Consent Agenda as read minus item G.
ROLL VOTE: Ayes: Gawron, Spataro, Warmington, Wierengo, Wisneski, and
           Carter
            Nays: None
MOTION PASSES
2009-79 ITEM REMOVED FROM THE CONSENT AGENDA:
         G. Request for an Access Agreement – Burgess Norton. PUBLIC WORKS
SUMMARY OF REQUEST: Burgess-Norton Manufacturing, Inc. has requested a
limited access agreement to install monitoring wells in Restlawn Cemetery and
McCrea Park to determine the extent of groundwater contamination from the
former BNM plant located at 660 Nims Street.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the limited access agreement subject to
supplemental conditions and compliance with necessary insurance
requirements.
Motion by Commissioner Carter, second by Commissioner Wierengo to approve
the Limited Access Agreement with Burgess Norton.
ROLL VOTE: Ayes:  Spataro, Warmington, Wierengo, Wisneski, Carter, and
           Gawron
            Nays: None
MOTION PASSES
2009-80 UNFINISHED BUSINESS:
      A. 2010 Budget Adoption. FINANCE
SUMMARY OF REQUEST: The City Commission may take action to adopt the 2010
budget with whatever changes or adjustments it deems necessary. City Charter
requires the budget be adopted no later than September 25, 2009.
FINANCIAL IMPACT: The budget sets forth the priorities and overall financial plan
for operations in the year 2010. As proposed, the budget includes no property
tax increase.
BUDGET ACTION REQUIRED: Adoption of the budget resolution provides the
legal appropriation authority necessary for City departments to conduct
operations in 2010.
STAFF RECOMMENDATION: Approve the proposed 2010 City of Muskegon
Budget resolution. Also, approval of the 3rd Quarter 2009 Budget Reforecast as
shown in the Budget Book is recommended at this time.
Motion by Commissioner Spataro, second by Commissioner Wierengo to
approve the 2010 Budget as presented.
ROLL VOTE: Ayes:  Spataro, Warmington, Wierengo, Wisneski, Carter, and
           Gawron
            Nays: None
MOTION PASSES
2009-81 NEW BUSINESS:
      A. Pooled Health Care Coverage. COMMISSIONER SPATARO
SUMMARY OF REQUEST: To approve a resolution to endorse the State of
Michigan concept to pool health care coverage for public employees and
retirees. The goal is to reduce costs through standardization of benefits and
economies of scales.
FINANCIAL IMPACT: Early estimates are $400 - $600 million savings statewide.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and send it to Legislators
and the Governor.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the resolution and send it to Legislators and the Governor.
ROLL VOTE: Ayes:   Warmington, Wierengo, Wisneski, Carter, Gawron, and
           Spataro
            Nays: None
MOTION PASSES
      B. Congress of Cities Voting Delegates. CITY CLERK
SUMMARY OF REQUEST: To designate one of our officials who will be in
attendance at the National League of Cities Annual Business Meeting on
Saturday, November 14th, to cast the City’s vote; and, if possible, to designate
an alternate.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Vice Mayor Gawron, second by Commissioner Wierengo to designate
Commissioner Clara Shepherd as the voting delegate to the Congress of Cities
Annual Business Meeting on November 14, 2009.
ROLL VOTE: Ayes:   Wierengo,      Wisneski,   Carter,   Gawron,   Spataro,   and
           Warmington
            Nays: None
MOTION PASSES
      C. Recommendations for the Various Boards and Committees. CITY CLERK
SUMMARY OF REQUEST: To appoint Paul Edbrooke and Willie German, Jr., to the
Local Officer’s Compensation Committee.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Commissioner Carter, second by Commissioner Wierengo to appoint
Paul Edbrooke and Willie German, Jr. to the Local Officer’s Compensation
Committee.
ROLL VOTE: Ayes:   Wisneski, Carter, Gawron, Spataro, Warmington, and
           Wierengo
           Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Parking for most of downtown is going to two hours.
PUBLIC PARTICIPATION: Various comments were heard.
ADJOURNMENT: The City Commission Meeting adjourned at 6:00 p.m.


                                         Respectfully submitted,




                                         Ann Marie Becker, MMC
                                         City Clerk
                                                                                                                          Not legible
Award will be based on the lowest base bid.                                                                               Math




                                       Bid Tabulation Smith Ryerson Park Improvements

                                                                                                              Engineer's Estimate            Lakewood Construction        Rockford Construction     Muskegon Quality Builders    Clifford Buck Construction        Wolverine Building         Tridonn Construction           Jackson-Merkey             Muskegon Construction            Jaran Construction
  Item                                  Description                                    Unit    Quantity    Unit Cost     Total Cost         Unit Cost   Total Cost      Unit Cost    Total Cost     Unit Cost   Total Cost       Unit Cost      Total Cost     Unit Cost     Total Cost     Unit Cost    Total Cost     Unit Cost     Total Cost      Unit Cost       Total Cost     Unit Cost     Total Cost
                                                                                                                                                                                                                                                                                                                                                     No Unit Prices Submitted
             Mobilization and General Conditions (not to exceed 5% of contract
         1
             amount                                                              Lump Sum             1     $20,000.00        $20,000.00    $54,835.25     $54,835.25   $4,480.00       $4,480.00  $33,557.00       $33,557.00  $35,700.00        $35,700.00  $21,749.88      $21,749.88  $25,685.00       $25,685.00  $39,375.00      $39,375.00                           $0.00  $21,400.00       $21,400.00
       2     Tree Removal, 8 inch to 18 inch                                     Each                 2         $200.00          $400.00       $364.00        $728.00     $392.00         $784.00     $200.00          $400.00     $350.00           $700.00     $275.31         $550.62     $418.25          $836.50     $635.00       $1,270.00                           $0.00     $535.00        $1,070.00
       3     Site Clearing                                                       Acre                 3      $3,000.00         $9,000.00       $780.00      $2,340.00     $840.00       $2,520.00   $1,666.67        $5,000.01     $750.00         $2,250.00   $2,422.77       $7,268.31     $896.25        $2,688.75   $5,300.00      $15,900.00                           $0.00   $3,388.33       $10,164.99
       4     Pavement Removal                                                    Square Yard       7110           $3.00       $21,330.00         $0.31      $2,184.19       $1.12       $7,963.20       $1.60       $11,376.00       $1.00         $7,110.00       $0.84       $5,972.40       $1.10        $7,821.00       $1.50      $10,665.00                           $0.00       $2.26       $16,068.60
       5     Curb and Gutter Removal                                             Foot                86           $4.00          $344.00         $4.16        $357.76       $4.48         $385.28       $2.00          $172.00       $4.00           $344.00       $2.20         $189.20       $4.78          $411.08       $6.00         $516.00                           $0.00       $6.22          $534.92
       6     Removal, Basketball Poles                                           Each                 4         $200.00          $800.00        $78.00        $312.00      $84.00         $336.00     $100.00          $400.00      $75.00           $300.00     $220.25         $881.00      $89.63          $358.52     $220.00         $880.00                           $0.00      $66.88          $267.52
       7     Removal, Site Lighting Poles                                        Lump Sum             1         $200.00          $200.00                      $728.00     $280.00         $280.00     $600.00          $600.00     $400.00           $400.00     $385.44         $385.44     $933.00          $933.00   $1,600.00       $1,600.00                           $0.00   $2,461.00        $2,461.00
       8     Fence Removal                                                       Foot               369           $2.00          $738.00        $3.12       $1,151.28       $3.36       $1,239.84       $1.50          $553.50       $3.00         $1,107.00       $3.30       $1,217.70       $3.59        $1,324.71       $4.00       $1,476.00                           $0.00       $2.61          $963.09
       9     Removal, Baseball Backstop                                          Each                 2         $500.00        $1,000.00      $156.00         $312.00     $168.00         $336.00     $300.00          $600.00     $150.00           $300.00     $550.63       $1,101.26     $179.25          $358.50     $760.00       $1,520.00                           $0.00     $535.00        $1,070.00
      10     Removal, Benches                                                    Lump Sum             1          $50.00           $50.00                      $182.00     $196.00         $196.00     $100.00          $100.00     $175.00           $175.00     $550.63         $550.63     $209.13          $209.13     $300.00         $300.00                           $0.00     $428.00          $428.00
      11     Removal, Posts                                                      Lump Sum             1         $500.00          $500.00                      $182.00     $196.00         $196.00     $100.00          $100.00     $175.00           $175.00      $55.06          $55.06     $209.13          $209.13     $150.00         $150.00                           $0.00     $428.00          $428.00
      12     Remove, Existing Electric Meter                                     Lump Sum             1         $500.00          $500.00                      $104.00     $580.00         $580.00     $400.00          $400.00     $200.00           $200.00     $220.25         $220.25     $120.00          $120.00     $700.00         $700.00                           $0.00     $535.00          $535.00
      13     Remove Existing Water Meter                                         Lump Sum             1         $500.00          $500.00                      $208.00     $448.00         $448.00     $400.00          $400.00     $500.00           $500.00     $275.31         $275.31     $239.00          $239.00     $700.00         $700.00                           $0.00     $642.00          $642.00
      14     Dewatering                                                          Lump Sum             1      $5,000.00         $5,000.00                    $2,600.00   $2,800.00       $2,800.00   $5,000.00        $5,000.00   $2,500.00         $2,500.00   $5,506.30       $5,506.30   $2,987.50        $2,987.50   $3,700.00       $3,700.00                           $0.00   $2,140.00        $2,140.00
      15     Site Grading                                                        Lump Sum             1     $20,000.00        $20,000.00                   $42,857.36  $46,154.00      $46,154.00  $30,000.00       $30,000.00  $41,209.00        $41,209.00 $105,170.28     $105,170.28  $49,244.75       $49,244.75  $42,000.00      $42,000.00                           $0.00 $132,680.00      $132,680.00
      16     Timber Pile                                                         Each                 8         $500.00        $4,000.00     $1,159.60      $9,276.80   $1,232.00       $9,856.00   $1,125.00        $9,000.00   $1,215.00         $9,720.00     $966.36       $7,730.88   $1,332.50       $10,660.00   $1,150.00       $9,200.00                           $0.00   $2,407.50       $19,260.00
      17     Maintenance Gravel                                                  Cubic Yard         500          $20.00       $10,000.00         $3.64      $1,820.00       $3.92       $1,960.00      $22.00       $11,000.00       $3.50         $1,750.00       $5.51       $2,755.00       $4.19        $2,095.00       $1.00         $500.00                           $0.00      $21.40       $10,700.00
      18     Aggregate Base Coarse 22A, 4 inch                                   Square Yard       4489           $4.50       $20,200.50         $5.67     $25,443.65       $6.10      $27,382.90       $2.70       $12,120.30       $5.45        $24,465.05       $2.75      $12,344.75       $6.52       $29,268.28       $3.70      $16,609.30                           $0.00       $2.98       $13,377.22
      19     Aggregate Base Coarse 22A, 6 inch                                   Square Yard       6442           $5.00       $32,210.00         $3.59     $23,113.90       $3.86      $24,866.12       $3.76       $24,196.15       $3.45        $22,224.90       $2.75      $17,715.50       $4.13       $26,605.46       $4.75      $30,599.50                           $0.00       $3.16       $20,356.72
      20     Curb and Gutter, Conc, Det F4                                       Foot                80          $18.00        $1,440.00        $16.64      $1,331.20      $24.92       $1,993.60      $22.00        $1,760.00      $25.00         $2,000.00      $14.32       $1,145.60      $20.32        $1,625.60      $18.00       $1,440.00                           $0.00      $25.41        $2,032.80
      21     Driveway Opening, Conc, Det M                                       Foot                70          $18.00        $1,260.00        $17.68      $1,237.60      $26.04       $1,822.80      $26.00        $1,820.00      $30.00         $2,100.00      $14.32       $1,002.40      $21.51        $1,505.70      $18.00       $1,260.00                           $0.00      $18.34        $1,283.80
      22     Drainage Structure Cover                                            Pound              500           $1.25          $625.00         $1.56        $780.00       $1.68         $840.00       $1.50          $750.00       $1.50           $750.00       $1.65         $825.00       $1.80          $900.00       $1.00         $500.00                           $0.00       $1.71          $855.00
      23     Drainage Structure Adjust                                           Each                 1         $350.00          $350.00                      $312.00     $336.00         $336.00     $150.00          $150.00     $300.00           $300.00     $165.19         $165.19     $359.00          $359.00     $350.00         $350.00                           $0.00     $267.50          $267.50
      24     HMA, 3C                                                             Ton                850          $45.00       $38,250.00        $72.80     $61,880.00      $69.31      $58,913.50      $66.75       $56,733.25      $62.00        $52,700.00      $68.15      $57,927.50      $79.76       $67,796.00      $62.00      $52,700.00                           $0.00      $68.98       $58,633.00
      25     HMA, 4C                                                             Ton                584          $45.00       $26,280.00        $72.80     $42,515.20      $72.26      $42,199.84      $64.52       $37,679.68      $65.00        $37,960.00      $71.05      $41,493.20      $77.10       $45,026.40      $65.00      $37,960.00                           $0.00      $69.07       $40,336.88
      26     HMA, 36A, Bicycle Path                                              Ton                181          $75.00       $13,575.00        $74.88     $13,553.28      $80.84      $14,632.04      $82.84       $14,994.04      $73.00        $13,213.00      $79.29      $14,351.49      $99.00       $17,919.00      $73.00      $13,213.00                           $0.00      $87.49       $15,835.69
      27     Sidewalk Ramp, ADA                                                  Square Foot        175           $9.00        $1,575.00         $9.43      $1,650.48       $7.00       $1,225.00      $25.00        $4,375.00      $27.00         $4,725.00       $4.68         $819.00       $8.48        $1,484.00       $6.00       $1,050.00                           $0.00      $30.57        $5,349.75
      28     Concrete Sidewalk, 4 inch                                           Square Foot       1440           $3.00        $4,320.00         $3.22      $4,642.56       $4.26       $6,134.40       $2.50        $3,600.00       $3.50         $5,040.00       $2.31       $3,326.40       $3.65        $5,256.00       $2.70       $3,888.00                           $0.00       $2.60        $3,744.00
      29     Concrete Slab, Picnic Shelter, 5 inch                               Square Foot       3560           $3.75       $13,350.00         $3.12     $11,107.20       $4.09      $14,560.40       $2.70        $9,612.00       $3.20        $11,392.00       $2.75       $9,790.00       $3.11       $11,071.60       $2.50       $8,900.00                           $0.00       $4.03       $14,346.80
      30     Concrete Slab, Basketball Courts, 4 Inch                            Square Foot      14040           $3.00       $42,120.00         $2.50     $35,043.84       $3.36      $47,174.40       $2.50       $35,100.00       $2.80        $39,312.00       $2.31      $32,432.40       $2.63       $36,925.20       $2.25      $31,590.00                           $0.00       $2.29       $32,151.60
      31     Outlook and Ramp                                                    Each                 1      $7,000.00         $7,000.00                   $14,141.92  $26,434.00      $26,434.00  $13,158.00       $13,158.00  $12,977.00        $12,977.00  $25,879.60      $25,879.60  $16,649.00       $16,649.00  $25,000.00      $25,000.00                           $0.00  $21,400.00       $21,400.00
      32     Concession Stand and Restroom Facility                              Lump Sum             1     $95,000.00        $95,000.00                  $181,530.96 $187,728.00     $187,728.00 $157,570.00      $157,570.00 $179,674.00       $179,674.00 $189,534.47     $189,534.47 $191,367.00      $191,367.00 $198,500.00     $198,500.00                           $0.00 $177,192.00      $177,192.00
      33     Picnic Shelter                                                      Lump Sum             1     $75,000.00        $75,000.00                   $72,013.76  $66,080.00      $66,080.00  $83,992.00       $83,992.00  $89,000.00        $89,000.00  $73,310.84      $73,310.84  $84,133.00       $84,133.00  $78,500.00      $78,500.00                           $0.00  $98,226.00       $98,226.00
      34     Picnic Tables                                                       Each                30         $550.00       $16,500.00       $551.20     $16,536.00     $560.00      $16,800.00     $543.83       $16,314.90     $670.00        $20,100.00     $637.63      $19,128.90     $765.00       $22,950.00   $1,160.00      $34,800.00                           $0.00     $463.67       $13,910.10
      35     Picnic Tables, Barrier Free, 12 foot                                Each                 2         $475.00          $950.00       $538.72      $1,077.44     $470.00         $940.00     $418.00          $836.00     $608.00         $1,216.00     $671.77       $1,343.54     $686.00        $1,372.00   $1,100.00       $2,200.00                           $0.00     $963.00        $1,926.00
      36     Barbeque Grill                                                      Each                 2         $800.00        $1,600.00       $803.92      $1,607.84     $672.00       $1,344.00     $588.00        $1,176.00     $800.00         $1,600.00     $990.03       $1,980.06   $1,190.00        $2,380.00   $1,100.00       $2,200.00                           $0.00     $909.50        $1,819.00
      37     Aluminum Bleacher, 3 Row                                            Each                 2      $2,000.00         $4,000.00     $1,886.56      $3,773.12   $1,165.00       $2,330.00   $1,014.00        $2,028.00   $1,485.00         $2,970.00   $1,800.56       $3,601.12   $1,775.00        $3,550.00   $1,600.00       $3,200.00                           $0.00   $1,605.00        $3,210.00
      38     Basketball Courts Surface Marking                                   Lump Sum             1      $2,000.00         $2,000.00                      $416.00     $224.00         $224.00   $1,600.00        $1,600.00     $450.00           $450.00     $440.50         $440.50     $833.00          $833.00     $745.00         $745.00                           $0.00   $5,350.00        $5,350.00
      39     Basketball Pole and Net                                             Each                 4      $1,800.00         $7,200.00     $1,158.82      $4,635.28   $1,086.00       $4,344.00     $759.00        $3,036.00   $2,121.00         $8,484.00   $1,400.80       $5,603.20   $1,791.00        $7,164.00   $2,000.00       $8,000.00                           $0.00   $1,685.25        $6,741.00
      40     Storage Building Renovation                                         Lump Sum             1     $20,000.00        $20,000.00                   $19,234.80  $16,319.00      $16,319.00  $18,995.00       $18,995.00  $17,377.00        $17,377.00  $19,811.66      $19,811.66  $25,438.00       $25,438.00  $24,000.00      $24,000.00                           $0.00  $21,507.00       $21,507.00
      41     Irrigation System Base                                              Lump Sum             1     $35,000.00        $35,000.00                   $28,614.56  $33,488.00      $33,488.00  $27,514.00       $27,514.00  $33,471.00        $33,471.00  $32,927.66      $32,927.66  $35,730.00       $35,730.00  $44,000.00      $44,000.00                           $0.00  $32,100.00       $32,100.00
      42     Combination Football Goal and Soccer Post                           Each                 2      $4,000.00         $8,000.00     $2,096.00      $4,192.00   $1,344.00       $2,688.00   $1,871.00        $3,742.00   $3,057.00         $6,114.00   $1,917.29       $3,834.58   $2,548.00        $5,096.00   $1,780.00       $3,560.00                           $0.00   $3,317.00        $6,634.00
      43     Acer Rubrum, 2-1/2 inch B&B                                         Each                 9         $300.00        $2,700.00                    $2,190.24     $308.00       $2,772.00     $234.00        $2,106.00     $238.00         $2,142.00     $257.69       $2,319.21     $328.00        $2,952.00     $250.00       $2,250.00                           $0.00     $237.78        $2,140.02
      44     Salix Nigra, 2-1/2 inch B&B                                         Each                 3         $350.00        $1,050.00                      $923.52     $308.00         $924.00     $296.00          $888.00     $286.00           $858.00     $325.97         $977.91     $328.00          $984.00     $300.00         $900.00                           $0.00     $285.33          $855.99
      45     Quercus Palustris, 2-1/2 inch, B&B                                  Each                 3         $300.00          $900.00                      $673.92     $308.00         $924.00     $216.00          $648.00     $253.00           $759.00     $237.87         $713.61     $328.00          $984.00     $270.00         $810.00                           $0.00     $285.33          $855.99
      46     Lirodendron Tulipifera 2-1/2 inch, B&B                              Each                 4         $350.00        $1,400.00                      $811.20     $319.00       $1,276.00     $195.00          $780.00     $291.00         $1,164.00     $214.75         $859.00     $426.00        $1,704.00     $310.00       $1,240.00                           $0.00     $294.25        $1,177.00
      47     Thuja Occidentallis 'Nigra', 5 foot B&B                             Each                 3         $350.00        $1,050.00                      $274.56      $93.33         $279.99      $88.00          $264.00      $79.00           $237.00      $96.91         $290.73     $100.00          $300.00      $85.00         $255.00                           $0.00     $285.33          $855.99
      48     Light Poles                                                         Each                 6      $5,000.00        $30,000.00                    $2,100.80   $1,479.00       $8,874.00   $1,920.00       $11,520.00   $1,320.00         $7,920.00   $1,905.18      $11,431.08   $1,733.00       $10,398.00   $1,600.00       $9,600.00                           $0.00   $1,515.83        $9,094.98
      49     Conduit and Wiring                                                  Lump Sum             1      $5,000.00         $5,000.00                      $373.12  $16,688.00      $16,688.00  $14,800.00       $14,800.00  $14,880.00        $14,880.00   $6,100.98       $6,100.98   $6,621.00        $6,621.00   $5,900.00       $5,900.00                           $0.00   $5,885.00        $5,885.00
      50     Parking Sign and Post                                               Each                 6         $300.00        $1,800.00                    $3,731.52     $224.00       $1,344.00     $200.00        $1,200.00     $325.00         $1,950.00     $275.31       $1,651.86     $537.75        $3,226.50     $480.00       $2,880.00                           $0.00     $160.50          $963.00
      51     Parking Sign, Barrier Free                                          Each                 1          $50.00           $50.00                        $0.00     $168.00         $168.00     $200.00          $200.00     $325.00           $325.00     $275.31         $275.31     $119.50          $119.50     $100.00         $100.00                           $0.00     $165.85          $165.85
      52     Grinder Pump, Relocate                                              Lump Sum             1      $3,000.00         $3,000.00                        $0.00   $1,980.00       $1,980.00   $4,590.00        $4,590.00   $1,750.00         $1,750.00   $3,050.49       $3,050.49   $2,413.90        $2,413.90   $3,400.00       $3,400.00                           $0.00   $3,210.00        $3,210.00
      53     PVC Pipe, Schedule 80, 1-1/2 inch                                   Foot               230              10        $2,300.00                        $0.00      $17.47       $4,018.10      $11.00        $2,530.00      $15.60         $3,588.00      $11.01       $2,532.30      $18.65        $4,289.50      $16.00       $3,680.00                           $0.00       $9.30        $2,139.00
      54     Water Service Miscellaneous                                         Lump Sum             1             800          $800.00                      $520.00     $580.00         $580.00   $3,680.00        $3,680.00     $500.00           $500.00   $4,280.66       $4,280.66     $598.00          $598.00   $1,600.00       $1,600.00                           $0.00   $1,070.00        $1,070.00
      55     Water Service, Copper, 1 inch                                       Foot               100          $18.00        $1,800.00                    $1,820.00      $19.80       $1,980.00      $14.00        $1,400.00      $17.50         $1,750.00      $13.22       $1,322.00      $20.91        $2,091.00      $18.00       $1,800.00                           $0.00      $11.77        $1,177.00
      56     Silt Fence                                                          Foot               800           $1.50        $1,200.00                    $1,664.00       $2.24       $1,792.00       $1.00          $800.00       $2.00         $1,600.00       $3.30       $2,640.00       $2.39        $1,912.00       $1.80       $1,440.00                           $0.00       $2.14        $1,712.00
      57     Slope Restoration                                                   Square Yard      20000           $2.50       $50,000.00                   $17,284.80       $0.67      $13,400.00       $2.65       $53,000.00       $0.70        $14,000.00       $0.58      $11,600.00       $1.02       $20,400.00       $1.15      $23,000.00                           $0.00       $1.07       $21,400.00
      58     Parking Lot Bumper Blocks                                           Each                43          $30.00        $1,290.00                    $2,683.20      $67.00       $2,881.00     $100.00        $4,300.00      $46.00         $1,978.00      $66.08       $2,841.44      $71.70        $3,083.10      $62.00       $2,666.00                           $0.00      $37.33        $1,605.19
      59     Pavement Markings, Parking Lot                                      Lump Sum             1      $2,000.00         $2,000.00                      $956.80   $1,008.00       $1,008.00     $800.00          $800.00   $1,012.00         $1,012.00   $1,013.16       $1,013.16   $1,900.00        $1,900.00   $1,600.00       $1,600.00                           $0.00   $2,568.00        $2,568.00
                                                                                                          Total              $669,000.00                  $726,570.91                 $742,203.41                  $745,016.83                   $750,467.95                 $786,213.82                  $812,562.31                 $818,337.80                     $818,000.00                  $876,273.99
AS-READ NUMBER                                                                                                                                            $499,403.00                $742,101.41                   $745,000.00                   $750,468.00                 $786,213.76                  $812,562.31                 $817,737.80                     $818,000.00                  $876,174.85

Alternate A:
Deduct
      30 Concrete Slab, Basketball Courts, 4 Inch                                Square Foot      14040          -$3.00       -$42,120.00                 -$29,484.00       -$2.70    -$37,908.00        -$2.63    -$36,855.00        -$2.75     -$38,610.00        -$2.53    -$35,521.20       -$2.27    -$31,870.80                  -$31,590.00                     -$30,000.00       -$1.85     -$25,974.00
Add
      62 HMA, 36A, 100% Limestone Mix-Basketball Courts                          Ton                236         $45.00         $10,620.00                  $21,781.76       $80.51     $19,000.36       $78.58      $18,543.94       $78.00       $18,408.00       $74.31      $17,537.16       $93.90     $22,160.40                   $22,790.00                     $16,000.00       $106.38      $25,105.68

             TOTAL ALTERNATE A                                                                                                -$31,500.00                  -$7,702.24                 -$18,907.64                  -$18,311.06                   -$20,202.00                  -$17,984.04                  -$9,710.40                   -$8,800.00                     -$14,000.00                     -$868.32

Alternate B:

      63 Deduct to remove "Smith Ryerson Park" Sign from picnic shelter          Lump Sum             1       -$500.00           -$500.00                  -$7,500.00     -$500.00       -$500.00   -$5,000.00      -$5,000.00    -$4,620.00      -$4,620.00   -$15,000.00    -$15,000.00   -$4,800.00     -$4,800.00                   -$4,900.00                      -$5,000.00   -$4,000.00      -$4,000.00

Alternate C:

      64 Add Irrigation Alternate A                                              Lump Sum             1                                                     $3,504.00    $5,500.00      $5,500.00    $3,400.00       $3,400.00    $2,694.00        $2,694.00    $6,060.00       $6,060.00    $5,975.00      $5,975.00                    $5,275.00                      $6,200.00     $6,000.00       $6,000.00

Alternate D:

      65 Add Irrigation Alternate B                                              Lump Sum             1                                                     $4,442.00    $6,600.00      $6,600.00    $4,500.00       $4,500.00    $4,200.00        $4,200.00    $6,565.00       $6,565.00    $6,573.00      $6,573.00                    $6,248.00                      $5,700.00     $6,200.00       $6,200.00
Date: October 13, 2009
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Sewer Rate Adjustment


SUMMARY OF REQUEST: The city last adjusted sewer rates on January 1, 2009 (a 12% increase).
Since then, Sappi Paper has announced it is permanently closing the Muskegon mill operation and the state
has announced closing of the Muskegon Correctional facility. In response, Muskegon County has
announced it will raise wholesale sewer rates to municipal customers (including the city), by an initial15%. It
is certain that another substantial wholesale rate
increase will follow within the next year. City staff is
recommending a 25% retail rate increase to be
effective 1/1/10.

The proposed retail increase is greater than 15% for
two reasons: 1) the cash position of the sewer fund
is very poor and needs to be addressed quickly and,
2) within the year, we anticipate a second county
rate increase that will be equal to or larger than the
announced 15%. We are hopeful that increasing
retail rates more substantially now will mitigate the
level of increase needed later.

We continue to work with the county on metering issues. Some progress has been made as shown on the
accompanying chart. Monthly flows have decreased with use of the new “C” station meter as the basis for
computing city flows. Also, the new county leadership appears to recognize the importance of fully metering
city flows.

However, even as monthly flows have fallen, the city’s share of the total system has grown dramatically with
the downsizing and eventual closing of Sappi (see chart, right axis). The 40-year intergovernmental sewage
treatment agreement expires in 2010. There are many issues impacting the city that will need to worked out
in a new agreement.

FINANCIAL IMPACT: The proposed sewer rate adjustment will generate $1,225,000 additional annual
revenue for the city’s sewer fund. The financial impact for a typical city residential user (15,000 gal/month)
will be $118.20 annually ($9.85 monthly). The city will start monthly utility billing in the next few weeks which
will help residents budget for these costs and avoid the buildup of extraordinarily large bills.

BUDGET ACTION REQUIRED:                      None at this time. If the rate increase is approved, it will be
incorporated into the quarterly budget reforecast together with the higher anticipated county treatment costs.

STAFF RECOMMENDATION: Adoption of the attached fee adjustment resolution.
COMMITTEE RECOMMENDATION: None.
                                       CITY OF MUSKEGON
                                     RESOLUTION NO.________

At a regular meeting of the City Commission of Muskegon, Michigan, held at the City Commission Chambers on
October 13, 2009.

RECITALS

A review of the rates for sewer service has been accomplished by the City's staff, recommendations received, and
the City Commission has determined that the following rate changes are justified. Accordingly, this resolution is
made for the purpose of maintaining the financial viability of the City's sewer system.

THEREFORE, THE CITY COMMISSION OF THE CITY OF MUSKEGON HEREBY RESOLVES:

1. Charges for residential sewer service shall be changed from $1.97 per 100 cubic feet to $2.46 per 100 cubic
feet;

2. Charges for commercial/industrial sewer service shall be changed from $2.48 per 100 cubic feet to $3.10 per
100 cubic feet;

3. Charges for all non-metered residential sewer customers will be calculated based on an assumed usage rate
of 35 hundred cu. ft. per quarter.

4. Unless there is a separate agreement specifying a different billing method, non-resident users of the city sewer
system will be billed at a rate that is double (2x) the city rate for that class of user.

The above changes to be effective January 1, 2010.

This resolution adopted.


YEAS:



NAYS:



CITY OF MUSKEGON

By'

STATE OF MICHIGAN COUNTY OF MUSKEGON

I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a meeting of the Board of
Commissioners of the City of Muskegon, Michigan, held on the 13th day of October, 2009 and that the minutes of
the meeting are on file in the office of the City Clerk and are available to the public. Public notice of the meeting
was given pursuant to an in compliance with Act 267, Public Acts of Michigan, 1976.




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                                                                                                                                                                                    9/29/2009




                                                                   CITY OF MUSKEGON

                                                                       SEWER FUND

                                                                         2006- 2011




                                                                2006                    2007             2008                2009                2010                2011

                                                           16% Increase (eff       15% Increase (eff                    12% Increase (eff   25% Increase (eff   15% Increase (eff
                                                               1/1/06)                 7/1/07)                              1/1/09)             1/1/10)             1/1/11)

OPERATING REVENUES
 Charges for services                                      $      4,730,147 $             5,091,215 $     5,201,800 $          5,700,000 $         6,925,000 $         7,963,750
 Other revenues                                                      73,555                  87,880         124,987              110,000             110,000             110,000

                                                                  4,803,702               5,179,095       5,326,787            5,810,000           7,035,000           8,073,750

OPERATING EXPENSES
 Operating and administrative                                       393,064                 296,393         330,080              382,933             377,850             377,850
 Wastewater treatment                                             3,871,293               4,138,818       4,647,049            4,850,000           5,500,000           6,218,000
 Filtration plant operation                                               -                       -               -                    -                   -                   -
 Water distribution                                                       -                       -               -                    -                   -                   -
 Bad debts                                                            5,939                       -           2,214                3,000               3,000               3,000
 Depreciation                                                       653,028                 659,905         532,656              532,656             532,656             532,656

                                                                  4,923,324               5,095,116       5,511,999            5,768,589           6,413,506           7,131,506

    Operating profit (loss)                                        (119,622)                 83,979        (185,212)              41,411             621,494             942,244

OTHER (INCOME) OR DEDUCTIONS
 Interest income                                                      39,199                  34,045         11,860                 5,000             10,000              15,000
 Gain on sale of fixed assets                                              -                       -              -                     -                  -                   -
 State grant                                                               -                       -              -                     -                  -                   -
 Interest expense                                                    (63,233)                (25,221)       (12,550)                    -                  -                   -

                                                                     (24,034)                  8,824            (690)               5,000             10,000              15,000

Income (loss) before
  operating transfers and extraordinary loss                       (143,656)                 92,803        (185,902)              46,411             631,494             957,244
Operating transfers in (out)                                        107,356                       -               -                    -                   -                   -

Net income (loss) before extraordinary loss                          (36,300)                92,803        (185,902)              46,411             631,494             957,244

 Extraordinary loss/claim                                                  -                       -               -                    -                   -                   -

        NET INCOME (LOSS)                                            (36,300)                92,803        (185,902)              46,411             631,494             957,244

Net assets at January 1                                          14,486,564              14,450,264      14,543,067           14,357,165          14,403,576          15,035,070

Equity transfer in (out)                                                   -                       -               -                    -                   -                   -

Net assets at December 31                                  $     14,450,264 $            14,543,067 $    14,357,165 $         14,403,576 $        15,035,070 $        15,992,314




Cash flows from operating activities
 Receipts from customers                                   $       4,601,177 $             5,137,181 $     4,949,503 $          5,529,000 $        6,717,250 $         7,724,838
 Receipts for internal services provided                              24,154                  24,456          34,868               34,868             34,868              34,868
 Payments to suppliers                                            (3,046,731)             (3,129,849)     (3,478,874)          (3,750,000)        (4,300,000)         (4,900,000)
 Payments to employees                                              (640,740)               (726,951)       (751,866)            (800,000)          (800,000)           (800,000)
 Payments to internal service funds                                 (543,825)               (652,716)       (620,785)            (620,785)          (620,785)           (620,785)
Net cash provided by (used for) operating activities                 394,035                 652,121         132,846              393,083          1,031,333           1,438,921

Cash flows from noncapital financing activities
 State grants                                                              -                       -               -                    -                   -                   -
 Cash deficit                                                              -                       -               -                    -                   -                   -
 Transfers in                                                              -                       -               -                    -                   -                   -
 Transfers out                                                             -                       -               -                    -                   -                   -
Net cash provided by (used for) noncapital financing
activities                                                                 -                       -               -                    -                   -                   -

Cash flows from capital and related financing activities
  State grants                                                            -                       -               -                    -                   -                   -
  Capital contributions                                             107,356                       -               -                    -                   -                   -
  Acquistion and construction of capital assets                    (340,777)               (281,888)       (602,806)            (320,000)           (445,000)           (600,000)
  Proceeds from sale of capital assets                                    -                       -               -                    -                   -                   -
  Proceeds from loan                                                      -                       -               -                    -                   -                   -
  Principal paid on bonds                                          (511,626)               (506,822)       (546,278)                   -                   -                   -
  Interest paid on bonds                                            (63,233)                (25,221)        (12,550)                   -                   -                   -
Net cash provided by (used for) capital and related
financing activities                                               (808,280)               (813,931)      (1,161,634)           (320,000)           (445,000)           (600,000)

Cash flows from investing activities
 Interest and dividends on investments                               39,199                  34,045          11,860               30,000              30,000              30,000
 Collections on contract receivable                                       -                       -               -                    -                   -                   -
Net cash provided by investing activities                            39,199                  34,045          11,860               30,000              30,000              30,000

  Net increase (decrease) in cash and cash
  equivalents                                                      (375,046)               (127,765)      (1,016,928)            103,083             616,333             868,920

Cash and cash equivalents at beginning of year                    1,270,352                 895,306         767,541             (249,387)           (146,304)            470,029

Cash and cash equivalents at end of year                   $        895,306 $               767,541 $      (249,387) $          (146,304) $          470,029 $         1,338,950




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