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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.
2
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
1