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CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 12, 2005
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
o CALL TO ORDER:
o PRAYER:
o PLEDGE OF ALLEGIANCE:
o ROLL CALL:
o HONORS AND AWARDS:
o INTRODUCTIONS/PRESENTATION:
o CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. Used Computer Equipment Sale. H.E.A.L.T.H. Committee
C. Sale of Buildable Vacant Lot at 551 South Getty. PLANNING &
ECONOMIC DEVELOPMENT
D. Policy Change to "Policy for Sale of City owned Residential Property.
PLANNING & ECONOMIC DEVELOPMENT
o PUBLIC HEARINGS:
o COMMUNICATIONS:
o CITY MANAGER'S REPORT:
o UNFINISHED BUSINESS:
o NEW BUSINESS:
A. Accounting Services Contract. FINANCE
B. Request to Purchase Two Fire Engines. PUBLIC SAFETY
C. Fire Truck Lease Purchase. FINANCE
D. Resolution to Acquire 280 lona. COMMUNITY AND NEIGHBORHOOD
SERVICES
E. City - MDNR Memorandum of Understanding for Bike Trail along
Laketon. ENGINEERING
F. Fireworks Display Request for the Greek Festival. CITY CLERK
o ANY OTHER BUSINESS:
o 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 fo!Ward 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.)
o ADJOURNMENT:
ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO
WANT TO ATIEND THE MEETING UPON TWENTY FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT GAIL A
KUNDINGER, CITY CLERI<, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TOO: (231)
724-4172.
Date: July 12, 2005
To: Honorable Mayor and City Commissioners
From: Gail A. Kundinger, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve the minutes of the Regular
Commission Meeting that was held on Tuesday, June 28, 2005.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 12, 2005
CITY COMMISSION CHAMBERS@ 5:30P.M.
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street. Muskegon, Michigan at 5:30p.m., Tuesday, July 12, 2005.
Mayor Warmington opened the meeting with a prayer from Pastor Sarah
Johnson of the Word of Truth Outreach 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 Bill Larson, Commissioner
Lawrence Spataro, Chris Carter, Kevin Davis, Stephen Gawron, and Clara
Shepherd, City Manager Bryon Mazade, City Attorney John Schrier, and City
Clerk Gail Kundinger.
2005-61 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, June 28, 2005.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
C. Sale of Buildable Vacant Lot at 551 South Getty. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 551 S.
Getty Street to Angela Hawkins, 531 S. Getty Street. Muskegon, MI. The lot is 80 x
111 ft. and is being offered to Angela Hawkins for $3,000. Angela Hawkins will be
combining this property with her existing property and building an addition to
her home. Her home is a two story home and the addition will be in line with the
existing structure. She will be adding just over 1,000 square feet in total to the
home. The True Cash Value for the property listed in the Assessor's Office is
$4,000, and our price is set at $3,000 which is 75% of that amount.
FINANCIAL IMPACT: The sale of this lot to the adjacent property owner for the
construction of an addition to her existing home 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 resolution and to authorize both the
Mayor and the Clerk to sign said resolution and deed.
COMMIITEE RECOMMENDATION: The Land Reutilization Committee
recommends approval of the sale with the condition that the property be
combined with the owner's original parcel and they have 18 months to build the
addition.
D. Policy Change to "Policy for Sale of City owned Residential Property.
PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the change to the "Policy for Sale of City-
Owned Residential Property" to include that Closing Costs will be split between
the buyer and the seller.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: none
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution.
COMMITTEE RECOMMENDATION: The Land Reutilization Committee
recommended approval of the policy change at their regular meeting of June
28,2005.
Motion by Commissioner Carter, second by Commissioner Gawron to approve
the Consent Agenda as read with the exception of item B.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and
Spataro
Nays: None
MOTION PASSES
2005-62 ITEM REMOVED FROM THE CONSENT AGENDA:
B. Used Computer Equipment Sale. H.E.A.L.T.H. Committee
SUMMARY OF REQUEST: The City H.E.A.L.T.H. and Fitness Committee seeks City
Commissioners' approval to sell obsolete computer equipment that the
Information Technology Department has in storage in the City Hall basement.
This old equipment is set to be discarded or destroyed by the Information
Technology Department. The proceeds from this fundraiser will be used to
purchase exercise equipment for the fitness area in the City Hall basement this
fall.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request for sale of obsolete
computer equipment and the proceeds from the sale go to the H.E.A.L.T.H.
Exercise Equipment Project for City Hall.
Motion by Commissioner Davis, second by Commissioner Carter to approve the
used computer equipment sale.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
2005-63 UNFINISHED BUSINESS:
A. Greek Festival Liquor License. (Mayor & Commission)
Motion by Commissioner Spataro, second by Commissioner Carter to approve
The Big Fat Greek Festival's request to sell ouzo using one ounce serving
containers, with the Fraternal Order of Police being in charge of serving at a
separate location from the beer and wine.
ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington, and
Carter
Nays: None
MOTION PASSES
2005-64 NEW BUSINESS:
A. Accounting Services Contract. FINANCE
SUMMARY OF REQUEST: In 1997, in conjunction with an early retirement initiative,
the Finance Department replaced a full-time finance clerk position with a
contractual accounting services arrangement. This has proven to be a very
successful and efficient arrangement: the number of billable hours has steadily
declined each year while the quality and volume of work has increased. In
2004, the total cost of the contract was $11 ,279 for 262 hours of work. By way of
comparison, the 2005 budgeted cost (wages and benefits) for a position
comparable to the one replaced in 1997 is $60,000.
The contract for accounting services has been with Hoffman, Steensma &
Plamondon (HSP) since the start. The HSP individual assigned to this account
now has several years of valuable experience with city financial procedures and
maintains an excellent working relationship with finance staff. HSP has submitted
a proposal for a three-year renewal of the contract which staff believes is fair
and reasonable.
FINANCIAL IMPACT:
Professional Staff % Increase Manager & Partner % Increase
Current $42.00 $50.00
2006 $43.00 2.4% $51.00 2.0%
2007 $44.00 2.3% $52.00 2.0%
2008 $45.00 2.3% $53.00 1. 9%
BUDGET ACTION REQUIRED: The 2005 budget includes adequate funding for
these services. Future budgets will incorporate the proposed rates.
STAFF RECOMMENDATION: Approval of a three-year contract extension with
Hoffman, Steensma & Plamondon, PLC for accounting services.
Motion by Vice Mayor Larson, second by Commissioner Gawron to approve a
three-year contract extension with Hoffman, Steensma & Plamondon, PLC for
accounting services.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, and
Davis
Nays: None
MOTION PASSES
B. Request to Purchase Two Fire Engines. PUBLIC SAFETY
SUMMARY OF REQUEST: Fire Department staff is requesting approval by the
Commission to allow for the procurement of two fire engines. The first engine
would be a standard front-line engine, which would be purchased. The second
would be an engine to include a 75' aerial ladder with a water delivery system
which would be leased over a period of ten years. These two engines would
replace two engines that are currently in service. The low bid, which meets all
stated specifications, was submitted by Crimson Fire, 907 7th Ave., Brandon,
South Dakota. Crimson is a subsidiary of Spartan Motors of Charlotte, Michigan.
The bid price submitted by Crimson is $1 ,031 ,390.
FINANCIAL IMPACT: Funds for this purchase and lease would originate in the
City's Public Improvement Fund. The current balance would provide for the
purchase of the first engine. Part of the future funds would provide the lease
payments for the engine/aerial.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the purchase and lease agreement.
Motion by Commissioner Spataro, second by Commissioner Davis to approve
the request to purchase two fire engines.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, and
Gawron
Nays: None
MOTION PASSES
C. Fire Truck Lease Purchase. FINANCE
SUMMARY OF REQUEST: One of the commitments made in the 1993 income tax
campaign was to set aside $150,000 each year to replace major fire equipment
on a "pay-as-you-go" basis. This commitment has been met each year. As of
12/31/04, there was $470,086 held in this account with an additional $150,000 to
be contributed in 2005. Public Safety staff has determined there is serious need
to replace two trucks at this time at a total projected cost of $1 ,031 ,390. Staff is
proposing to pay cash for the less expensive truck ($425,566) and to finance the
larger truck ($605,824) via an Act 99 installment purchase contract. Staff is
currently soliciting installment purchase quotes from various banks and other
lending sources.
FINANCIAL IMPACT: Quotes are being taken for two repayment terms: 7-year
and 10-year. Depending on which term is selected (and on quoted interest
rates), annual installments are estimated to be $70,000-$100,000.
BUDGET ACTION REQUIRED: None. Each year's budget includes $150,000
allocation for fire equipment replacement. Funding for the installment purchase
contract will come from this allocation.
STAFF RECOMMENDATION: To be determined.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the fire truck lease purchase through National City Bank.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
D. Resolution to Acquire 280 lona. COMMUNITY AND NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the resolution that instructs the Community
and Neighborhood Services office to obtain 280 lona from the State of
Michigan, which is currently a vacant abandoned home. The structure is
located next door to 284 lona, a recently completed infill home under the
"Operation: At Long Last" project. The department's objective is to obtain 280
lona for the minimum price of $300, rehabilitate it and sell the property to a
qualified family. The obtaining of this property and the total rehabilitation is one
additional piece to the City's continuous neighborhood revitalization efforts.
FINANCIAL IMPACT: CNS Office will supply $300 from the HOME program
income fund.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and instruct the CNS
Office to send the document to the State of Michigan.
COMMITIEE RECOMMENDATION: The Commission approved this transaction
during the December 7, 2004, meeting.
Motion by Commissioner Shepherd, second by Commissioner Spataro to
approve the resolution to acquire 280 lona from the State of Michigan.
ROLL VOTE: Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson, and
Shepherd
Nays: None
MOTION PASSES
E. City - MDNR Memorandum of Understanding for Bike Trail along
Laketon. ENGINEERING
SUMMARY OF REQUEST: Approve the memorandum of understanding between
the City and MDNR for the construction of a 10' asphalt trail starting at Getty
and moving east to the extent the available funds of $50,000 permits. The
project will use City man power for the work while the State will pay for the
material and the rental of any other equipment necessary to do the work. It is
expected that the $50,000 from MDNR will be enough to construct a bike path
between Getty & Roberts.
FINANCIAL IMPACT: The salaries of those individuals that will be involved in the
work which is estimated at about $10,000 and the use of City owned equipment.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve the Memorandum of Understanding.
Motion by Commissioner Spataro, second by Commissioner Gawron to approve
the Michigan Department of Natural Resources Memorandum of Understanding
for the Bike Trail along Laketon Avenue.
ROLL VOTE: Ayes: Warmington, Carter, Davis, Gawron, Larson, Shepherd, and
Spataro
Nays: None
MOTION PASSES
F. Fireworks Display Request for the Greek Festival. CITY CLERK
SUMMARY OF REQUEST: At the June 28th Commission Meeting you approved the
request from Summit Pyrotechnics for a fireworks display permit for the Big Fat
Greek Festival on July 30th. They are now requesting to set the fireworks off from
land instead of the Barge at Heritage Landing . Fire Marshall Meicalf will inspect
the fireworks on the day of the event.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED : None
STAFF RECOMMENDATION: Approval contingent on site plan inspection and
inspection of the fireworks.
Motion by Commissioner Carter, second by Commissioner Davis to approve the
fireworks display request.
ROLL VOTE: Ayes: Carter, Davis, Gawron, Larson, Shepherd, Spataro, and
Warmington
Nays: None
MOTION PASSES
ADJOURNMENT: The City Commission Meeting adjourned at 6:47 p.m.
Respectfully submitted,
Gail A. Kundinger, MMC
City Clerk
Commission Meeting Date: July 12,2005
Date: July 1, 2005
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department Cf6t
RE: Sale of Buildable Vacant Lot at 551 S. Getty
SUMMARY OF REQUEST:
To approve the sale of a vacant buildable lot at 551 S. Getty Street (Parcel #24-205-035-
0001-11) to Angela Hawkins, 531 S Getty Street, Muskegon, MI. The lot is 80 x 111 ft. and
is being offered to Angela Hawkins for $3,000. Angela Hawkins will be combining this
property with her existing property and building an addition to her home. Her home is a two
story home and the addition will be in line with the existing structure. She will be adding just
over 1,000 square feet in total to the home. The True Cash Value (TCV) for the property
listed in the Assessor's office is $4,000, and our price is set at $3,000 which is 75% of that
amount.
FINANCIAL IMPACT:
The sale of this lot to the adjacent property owner for the construction of an addition to her
existing home 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:
The Land Reutilization Committee recommends approval of the sale with the condition that
the property be combined with the owner's original parcel and they have 18 months to build
the addition.
7/1/05
CITY OF MUSKEGON
LAND REUTILIZATION COMMITTEE
REGULAR MEETING
MINUTES
June 28, 2005
Chairman M. Ann·hein called the meeting to order at 4:00p.m. and roll was taken.
MEMBERS PRESENT: M. Ann·hein, R. Hill, R. Allen, K. Davis
MEMBERS ABSENT: C. Shepherd, J. Mmtin Jr., J. McClain
STAFF PRESENT: H. Mitchell, D. Leafers, C. Bmbaker-Clarke
OTHERS PRESENT: A. Hawkins, 531 S. Getty; C. Miel, 531 S. Getty
APPROVAL OF MINUTES
A motion to approve the minutes of the regular meeting of April 26, 2005 was made by K. Davis,
supported by R. Hill and unanimously approved.
NEW BUSINESS
551 S. Getty St. - Request to sell the 80 x Ill buildable Jot at 531 S. Gettv St. to Angela Hawkins of 531
S. Getty St. for $3,000 to combine with her prope1tv, and not require her to build a home on the Jot Ms.
Hawkins would like to purchase the buildable City-owned property that is adjacent to hers. She will be
getting manied and her family will be expanding. She would like to build an addition to her current home
and is asking to purchase the property at the policy requirement price of 75% of the TCV ($3,000). She is
asking that she not be required to build a home on the prope1ty. The City-owned property does have a
slight slope headed toward Sumner Ave. The property at the corner of Sumner and Getty is owned by
Bethesda Baptist Church, and is vacant and unbuildable. Staff does not know what the church intends to do
with their property. With the lot being unbuildable, their options are limited. Staff recommends approval of
this request, or a compromise for the property. This would not go to City Commission until the sale is ready
to proceed. Any past due water bills or property taxes would have to be paid prior to the sale being
completed.
M. Amrhein asked if the purchase of this lot would allow the owners to meet the side setback requirements
for the pla1med addition to their home. H. Mitchell stated it would. R. Hill asked about the scope of the
constmction plans. C. Miel stated the addition would be 16 feet across fi·om north to south, and 34 feet
deep. It would cover what is now their side yard, and would be two stories. M. Ann·hein stated they would
be adding over I ,000 square feet to the residence, thus increasing the taxable value. He asked how many
feet existed between the home and the property line. A. Hawkins stated roughly 40 feet. R. Allen asked
about the unbuildable corner lot owned by the church. C. Miel stated that the church uses it for parking. R.
Allen asked if there were plans to fence the yard in. C. Miel stated they would be.
M. Amrhein asked if they could add the condition that the addition is to be built within 18 months. H.
Mitchell stated they could.
A motion to recommend approval to the City Commission to sell the buildable lot at 551 S. Getty St. to
Angela Hawkins for $3,000 to be combined with her prope1ty at 531 S. Getty St., and waive the
requirement to build a home on the lot, provided the planned addition to the home is completed within 18
months, was made by R. Hill, supported by K. Davis and unanimously approved.
City-Owned Property to Sell
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Hawl and equipment made the basis of this contract shall meet only the specifications attached hereto and
m:ulc n part hereof: as if fully and completely set out herein, and no other. This sole and exclusive warranty
;lccompanying this sale is contained in the warranty attached hereto, and made a part hereof by reference, as if fully and
cnrnplctcly set ont herein.
Third: This contract for tire apparatus confomJs with all Federal Department of Transportation (DOT) rules and
rl!gulations ill ctTcet at the time of contract signing, and with all National Fire Protection Association (NFPA}
(luidclincs fOr Automotive Fire Apparatus as published at the time of contract signing, except as modified by Customer
Spccitlcntions. Any increased cost incurred by first party because of future changes in or additions to said DOT or
NFPA ~tandurds will be passed along to the customer as an addition to the price set forth below.
fow1h: The said apparants and equipment shall be ready for delivery from the first party's factory, within about 330
c;~lcnds
Date Date
r----.. !J
Ily: ~Q-, ~ -
(/ACCEPTED AT Brandon, South Dakota
?:.imson Fire, Inc. Officer Signature
Print Nnme: ~cg, D- Sr'-v\.
Title: DII~-Pf' H....o.JQA 2004
.TuEZ
HARTFORD
Claims Inquiries Notice
Hartford Fire Insurance Company Twin City Insurance Company
Hartford Casualty Insurance Company Hartford Insurance Company of Illinois
Hartford Accident and Indemnity Company Hartford Insurance Company of the Midwest
Hartford Underwriters Insurance Company Hartford Insurance Company of the Southwest
Please address inquiries regarding Claims for all surety and fidelity products issued by The
Hartford's underwriting companies to the following:
Phone Number: 888-266-3488
Fax -Claims 860-757-5835 or 860-547-8265
E-mail claims@ I stepsurety.com
Mailing Address The Hartford
BOND, T-4
690 Asylum A venue
Hartford, CT 06115
Claims Inquiries Notice 2003
Obligee'sllnsured's Name
See Attached Bond
Obligee 'sl/nsured's Mailing Address
See Attached Bond
IMPORTANT NOTICE TO
Bond/Policy Number OBLIGEES/POLICYHOLDERS -
See Attached Bond TERRORISM RISK INSURANCE
ACT OF 2002
You are hereby notified that, under the Terrorism Risk Insurance Act of 2002, effective November
26, 2002, we must make terrorism coverage available in your bond/policy. However, the actual
coverage provided by your bond/policy for acts of terrorism, as is true for all coverages, is limited
by the terms, conditions, exclusions, limits, other provisions of your bond/policy, any
endorsements to the bond/policy and generally applicable rules of law.
Any terrorism coverage provided by this bond/policy is partially reinsured by the United States of
America under a formula established by Federal Law. Under this formula, the United States will
pay 90% of covered terrorism losses exceeding a statutorily-established deductible paid by
sureties/insurers until such time as insured losses under the program reach $100 billion. If that
occurs, Congress will determine the procedures for, and the source of, any payments for losses in
excess of $1 00 billion.
The premium charge that has been established for terrorism coverage under this bond/policy is
either shown on this form or elsewhere in the bond/policy. If there is no premium shown for
terrorism on this form or elsewhere in the bond/policy, there is no premium for the coverage.
I Terrorism premium: I $0
Form B-3333-0 Page 1 of 1
© 2002, The Hartford
Notary Acknowledgement of Surety
State of Michigan
County of Kent } ss:
On August 2, 2005 , before me, a Notmy Public in and for said County and State, residing
therein, duly commissioned and sworn, personally appeared Julie Mroz
known to me to be Attomcy-in-Fact of Ha1iford Fire Insurance Company
the corporation described in and that executed the within and foregoing insb·umen~ and known to me to be the person who executed
the said instrument in behalf of the said corporation, and he duly acknowledged to me that such corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year stated in th;s ccttificate above.
'
My Commission Expires .:_A~u:'!;gt'u~st'-'1"'9,_,2,. 0:::0cc7_ _ _ _ _ __ -#Jf--l..L'I.A--. ( - ....~
VENDOR- CRIMSON FIRE
By _________________________
Name: -------------------------
Its - - - - - - - - - - - - - - - - - - - -
Date: - - - - - - - - - - - - - - -
a,IEDSIIFILESIOOI00\1254.002\AGICA7526.DOC
WITNESSES: CITY OF MUSKEGON
By:------------
Stephen J. Warmington, Mayor
Date: ____________________
And _______________________
Gail A. Kundinger, MMC, Clerk
Date:
BANK- NATIONAL CITY
COMMERCIAL CAPITAL
By ________________________
Name:
Its ___________________________
Date:
VENDOR- CRIMSON FIRE
By d:'44~
Name: k'ck1'J bR<>wi.:R
Its , ,
Date: 7/bi/p'
C:\Documents and Settings\rsiem\Local Settings\Temporary Internet Files\OLK824\0705 fire truck ipa.doc
EXHIBIT A
PRINCIPAL AND INTEREST PAYMENT SCHEDULE
G:\EDSIIFILES\OOI00\1254.0021AGICA7526.DOC
Exhibit A
Prinicipal and Interest Payment Schedule
Pa~ment Date Pa)'ment Interest Principal
Loan 7/26/2005
1 10/1/2005 4,318.35 4,318.35 0.00
2 4/1/2006 61,386.53 11,601.53 49,785.00
3 10/1/2006 10,648.15 10,648.15 0.00
4 4/1/2007 62,569.15 10,648.15 51,921.00
5 10/1/2007 9,653.86 9,653.86 0.00
6 4/1/2008 63,801.86 9,653.86 54,148.00
7 10/1/2008 8,616.93 8,616.93 0.00
8 4/1/2009 65,087.93 8,616.93 56,471.00
9 10/1/2009 7,535.51 7,535.51 0.00
10 4/1/2010 66,429.51 7,535.51 58,894.00
11 10/1/2010 6,407.69 6,407.69 0.00
12 4/1/2011 67,827.69 6,407.69 61,420.00
13 10/1/2011 5,231.49 5,231.49 0.00
14 4/1/2012 69,286.49 5,231.49 64,055.00
15 10/1/2012 4,004.84 4,004.84 0.00
16 4/1/2013 70,807.84 4,004.84 66,803.00
17 10/1/2013 2,725.56 2,725.56 0.00
18 4/1/2014 72,394.56 2,725.56 69,669.00
19 10/1/2014 1,391.40 1,391.40 0.00
20 4/1/2015 74,049.40 1,391.40 72,658.00
Grand Totals 734,174.74 128,350.74 605,824.00
Jul 25 05 02:18p Cit~ oF MuskegonF1nance p. I
Affirmative Action
(23 1)724-6703
FAX (231)722-1214
Assessor
(23 1)724-6708
FAX (231)726-5181
Cemetery
(231 )724-6783
FAX (231)726-5617
West Michigan's Shoreline City
City Manager www.shofelinecity.com
(231 )724·6724
r"AX (231)722-1214
Civil Service
(231 )724-6716
FAX (231)724-4405
Clerk
(231)724-6705
FAX (23 I )724-4178
Ms Rose Komath
Comm. & Neigh.
Services National City Commercial Capita[
(231)724-6717 Two Miranova Place
FAX (23 I )726-2501
Suite 1000
Engineering Columbus, OH 43215
(231)724-6707
FAX (231)727-6904
Finance
(23 I )724-6713
FAX (231)724-6768
Dear Ms Konrath:
Fire Department
(231)724-6792
FAX (231 )724-6985 As discussed, a clerical misunderstanding resulted in the approving resolution (#2005-64c) for
Income Tax
installment purchase of fire trucks referring to ''National City Bank of the Midwest" instead of
(231)724-6770 "National City Commercial Capital." This letter is to clarify that the City of Muskegon understands
FAX (231)724-6768
and agrees that the funding institution is National City Commercial Capital.
Info. Tt:ehnology
(231 )724-4126
fAX (231)722-4301 Please let me know if there is anything else needed.
Inspection Services
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FAX (23 1)728-4371
Leisure Services
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FAX (231)724-1196 Very Trul~s, /J
Mayor's Office \ / ! / /
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FAX (231)724-6790
Ti~~l_-·'
Director of Finance
Police Department
(231 )724-67 50
FAX (231 )722-5140
Pubtic Works
(231)724-4100
FAX (23 1)722-4188
Treasurer
{23! )724-6720
FAX (231)724-6768
Water Billing
(231)724-6718
fAX (23 1)724-6768
Water Filtration
(231)724-4106
FAX (231)755-5290 City of Muskegon, 933 Terrace Street, P.O. !lox 536, Muskegon, ~U 49443-0536
http://www .shorelinccitv .com
Jul 26 05 02: !Bp p.c
· ..-·.
City of Muskegon
Purchase Form
-Requested by: I Mark Kincaid I Date: 17-26-05
To be Charged to Account Number: 1404-00000-3454 (Fire Eqpt Reserve)
Balance of this Account: $470,085
For the purpose of: Two Fire Trucks
Vendor Name: Crimson Fire
Estimated Cost:
!-DJJe: I Open Monthly I Special I Stock . I One Time X
Project No: I .
Quantity Cost Description Total
1 Pumper $425,566
1 Aerial $605,824
0
0
0
0
0
0
0
0 .
0
0
/\, ./ \ 0
Total Aniov& ..'' ) $1,031,390.00
-
PO#: 1101-50336-72605 Approved: I i\(l ,.-- //
CITY OF MUSKEGON
RESOLUTION# o?oos-- 67' (c)
RESOLUTION TO APPROVE INSTALLMENT PURCHASE AGREEMENT
REGARDING PURCHASE OF FIRE TRUCKS
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the "City")
detennines it to be necessary for the public health, safety, and welfare ofthe city and its residents
to acquire a pumper fire truck and a pumper fire truck with aerial ("Property") for the sum of
One Million Thirty One Thousand Three Hundred Ninety Dollars ($1 ,031 ,390.00) ("Purchase
Price"), of which the City will pay Vendor Four Htmdred Twenty Five Thousand Five Hundred
Sixty Six Dollars ($425,566) at or prior to delivery of the trucks and promise to pay an additional
Six Hundred Five Thousand Eight Hundred Twenty Four Dollars ($605,824) ("Financed
Amount").
WHEREAS, under the provisions of Act No. 99, Public Acts of Michigan, 1933, as amended
("Act"), the City is or will be authorized to enter into any contract or agreement for the purchase
of Property to be paid for in installments over a period not to exceed 15 years and not to exceed
the useful life of the Property acquired as detennined by resolution ofthe City;
WHEREAS, the outstanding balance of all purchases by the City under Act 99, exclusive of
interest, shall not exceed one and one-quarter percent (I Y.%) of the taxable value of the real and
personal prope1iy in the City at the date of such contract or agreement;
WHEREAS, purchase of the Property pursuant to an installment purchase agreement will not
result in the outstanding balance of all such purchases in excess of the limitation contained
within Act 99 as set forth above;
WHEREAS, the City has requested and received proposals from various financial institutions
with respect to the financing of the Prope1ty;
WHEREAS, the City has received an offer of funding for the purchase of the Property from
National City Bank ofthe Midwest ("Bank"); and
WHEREAS, the City Commission has reviewed a form ofinstallment Purchase Agreement
("Agreement") setting forth the tenns and provisions of the sale of the Prope1ty to the City and
the payment by the City thereof, and it is the desire of the City Commission to approve the
purchase of the Prope1ty and to approve the general tenus of the financing thereof as set forth in
the Agreement and the execution thereof, subject to the completion of negotiations with the Bank
on the timing of the sale and purchase.
NOW, THEREFORE, BE IT RESOLVED, that:
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1. The Agreement is hereby approved substantially in the form attached as Appendix
A, with such additions, changes, and modifications as shall be approved by the
City Commission. The Mayor and Clerk of the City are hereby authorized and
directed to execute the Agreement, when in final fonn, and deliver it to the Bank.
2. The useful life of the Property is hereby determined to be not less than ten (1 0)
years.
3. The Mayor and Clerk are directed and authorized to execute such additional
documentation as shall be necessary to effectuate the closing contemplated by the
Agreement.
4. The City hereby agrees to include in its budget for each year, commencing with
the present fiscal year, a sum which will be sufficient to pay the principal of and
the interest due under the Agreement during such fiscal year.
5. The City hereby designates its obligations under the Agreement as "qualified tax
exempt obligations" for purchase of deduction of interest expense by financial
institutions pursuant to the Internal Revenue Code of 1986, as amended ("Code").
6. The City covenants that, to the extent pennitted by law, it shall take all actions
within its control necessary to maintain the exclusion of the interest component of
the payments due under the Agreement fi·om adjusted gross income for general
federal income tax purposes under the Code including, but not limited to, actions
relating to the rebate of arbitrage earnings, if applicable.
7. The acquisition of the Property and the approval of the Agreement hereby are
found and declared to be for a valid public purpose and in the best interest of the
health and welfare of the residents of the City.
8. All resolutions and parts of resolutions insofar as they conflict with the provisions
of this resolution are rescinded to the extent of such conflict.
Effective this /r:Z 71, day of O?tjy ,200~
CITY OF MUSKEGON
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CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution
authorized by the City Commission of the City of Muskegon, County of Muskegon,
Michigan, at a regular meeting held on Cft1,1;1 /,;{ , 200~;-'
Gail A. Kundinger, MMC
Clerk, City of Muskegon
PREPARED BY:
Joh11 C. Schrier, Esq.
Pannenter O'Toole
175 W. Apple Avenue
P.O. Box 786
Muskegon, MI 49443-0786
Phone: (231) 722-1621
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CERTIFICATION
Attached is a true copy of page 4 and 5 of the July 12, 2005, City of Muskegon City
Commission Meeting Minutes approving the purchase of two fire engines and the fire
truck lease purchase. 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
933 Terrace, Muskegon, MI 49440
Gail A. Kundinger, MM
City Clerk
and reasonable.
FINANCIAL IMPACT:
Professional Staff % Increase Manager & Partner % Increase
Current $42.00 $50.00
2006 $43.00 2.4% $51.00 2.0%
2007 $44.00 2.3% $52.00 2.0%
2008 $45.00 2.3% $53.00 1.9%
BUDGET ACTION REQUIRED: The 2005 budget includes adequate funding for
these services. Future budgets will incorporate the proposed rates.
STAFF RECOMMENDATION: Approval of a three-year contract extension with
Hoffman, Steensma & Plamondon, PLC for accounting services.
Motion by Vice Mayor Larson, second by Commissioner Gawron to approve a
three-year contract extension with Hoffman, Steensma & Plamondon, PLC for
accounting services.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter, and
Davis
Nays: None
MOTION PASSES
B. Request to Purchase Two Fire Engines. PUBLIC SAFETY
SUMMARY OF REQUEST: Fire Department staff is requesting approval by the
Commission to allow for the procurement of two fire engines. The first engine
would be a standard front-line engine, which would be purchased. The second
would be an engine to include a 75' aerial ladder with a water delivery system
which would be leased over a period of ten years. These two engines would
replace two engines that are currently in service. The low bid, which meets all
stated specifications, was submitted by Crimson Fire, 907 7th Ave., Brandon,
South Dakota. Crimson is a subsidiary of Spartan Motors of Charlotte, Michigan.
The bid price submitted by Crimson is $1 ,031 ,390.
FINANCIAL IMPACT: Funds for this purchase and lease would originate in the
City's Public Improvement Fund. The current balance would provide for the
purchase of the first engine. Part of the future funds would provide the lease
payments for the engine/aerial.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the purchase and lease agreement.
Motion by Commissioner Spataro, second by Commissioner Davis to approve
the request to purchase two fire engines.
ROLL VOTE: Ayes: Larson, Shepherd, Spataro, Warmington, Carter, Davis, and
Gawron
Nays: None
MOTION PASSES
C. Fire Truck Lease Purchase. FINANCE
SUMMARY OF REQUEST: One of the commitments made in the 1993 income tax
campaign was to set aside $150,000 each year to replace major fire equipment
on a "pay-as-you-go" basis. This commitment has been met each year. As of
12/31/04, there was $470,086 held in this account with an additional $150,000 to
be contributed in 2005. Public Safety staff has determined there is serious need
to replace two trucks at this time at a total projected cost of $1 ,031 ,390. Staff is
proposing to pay cash for the less expensive truck {$425,566) and to finance the
larger truck {$605,824) via an Act 99 installment purchase contract. Staff is
currently soliciting installment purchase quotes from various banks and other
lending sources.
FINANCIAL IMPACT: Quotes are being taken for two repayment terms: 7-year
and 10-year. Depending on which term is selected {and on quoted interest
rates), annual installments are estimated to be $70,000- $100,000.
BUDGET ACTION REQUIRED: None. Each year's budget includes $150,000
allocation for fire equipment replacement. Funding for the installment purchase
contract will come from this allocation.
STAFF RECOMMENDATION: To be determined.
Motion by Commissioner Carter, second by Commissioner Shepherd to approve
the fire truck lease purchase through National City Bank.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron, and
Larson
Nays: None
MOTION PASSES
D. Resolution to Acquire 280 lona. COMMUNITY AND NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the resolution that instructs the Community
and Neighborhood Services office to obtain 280 lona from the State of
Michigan, which is currently a vacant abandoned home. The structure is
located next door to 284 lona, a recently completed infill home under the
"Operation: At Long Last" project. The department's objective is to obtain 280
lona for the minimum price of $300, rehabilitate it and sell the property to a
qualified family. The obtaining of this property and the total rehabilitation is one
additional piece to the City's continuous neighborhood revitalization efforts.
FINANCIAL IMPACT: CNS Office will supply $300 from the HOME program
ACT 99 CERTIFICATE
The undersigned, the duly authorized and qualified Finance Director of the City of
Muskegon, County of Muskegon, State of Michigan (the "Issuer"), in connection with the
execution by the Issuer of a certain Installment Purchase Contract (the "Contract"), by and
between the Issuer and Crimson Fire, hereby certifies as follows:
I. The outstanding balance of all purchases of lands, property or equipment for
public purposes, to be paid for in installments, including purchases made pursuant to the
Contract, exclusive of interest, is $605,824.
2. The State equalized value of the real and personal property of the Issuer as of the
date of the Contract is $756,635,300.
3. The amount set forth in paragraph I hereof does not exceed one and one-quarter
percent (1-114%) of the amount set forth in paragraph 2 hereof.
Ti
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NON-LITIGATION AND
SIGNATURE-IDENTIFICATION CERTIFICATE
·. . """ ''*.
STATE OF MICHIGAN .. · . ·· · id ~
COUNTY OF MUSKEGON
1
, , ·., .·.. .L~,,.:.:L~;;, t
We hereby certify that we are the duly elected or ak£~.!ri~p~,qu~li#'~a:_,!il~.~~l~"ftt~tJ
of the City of Muskegon in the County and State aforesaid {tfie"1'Isimer"), as herein indicated;
that the undersigned Mayor and City Clerk did officially sign, by facsimile signature, the
Installment Purchase Agreement involving the City of Muskegon, National City Commercial
Capital and Crimson Fire, dated July 26, 2005, delivered herewith; that the undersigned Mayor
and City Clerk are on the date hereof the officers having authority to execute and deliver the
Installment Purchase Agreement; that the seal affixed below is the official seal of the Issuer; that
there is no litigation of any nature either pending or threatened for the purpose of restraining or
enjoining the issuance of the Installment Purchase Agreement or the levy and collection of taxes
sufficient to pay the interest and principal thereof, nor directly affecting the proceedings or
authority by which the Installment Purchase Agreement is issued, the legality of the purpose for
which the Installment Purchase Agreement is issued or the validity of the Installment Purchase
Agreement, and that neither the corporate existence nor the boundaries of the Issuer nor the title
of its present officers to their respective offices is being contested; that to the best of our
knowledge there is no litigation pending or threatened indirectly or collaterally affecting any of
the foregoing, and that none of the proceedings heretofore taken to authorize the Installment
Purchase Agreement and to provide security therefor have been repealed, revoked or rescinded.
Dated: July 2-\ , 2005
TITLE
Stephen Wannington, Mayor
Gail Kundinger, City Clerk
(City's Seal)
STATE OF MICHIGAN )
) ss.
COUNTY OF MUSKEGON
On July .dl_, 2005, before me, a Notary Public in and for said County, appeared the
Mayor and the City Clerk of the City of Muskegon, County of Muskegon, State of Michigan,
personally known to me to be the persons named herein and who executed this Certificate, and I
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$605,824
CITY OF MUSKEGON
COUNTY OF MUSKEGON, STATE OF MICHIGAN
NON-ARBITRAGE AND TAX COMPLIANCE CERTIFICATE
WHEREAS, the City of Muskegon, County of Muskegon, State of Michigan (the "City"),
pursuant to the provisions of Act 99, Public Acts of Michigan, 1933, as amended, and action
taken by the City on July 12, 2005 (the "Resolution"), has authorized an Installment Purchase
Agreement dated July 26, 2005. The Installment Purchase Agreement is being delivered on the
date hereof to provide funds to pay a portion of the cost of the purchase of two fire trucks,
together with all necessary and related appurtenances and attachments therefor (the "Project")
and to pay costs incidental to the Installment Purchase Agreement.
NOW, THEREFORE, I, the undersigned, being the Treasurer of the City and being in
general charge of and one of the officers responsible for the issuance of the Installment Purchase
Agreement, do hereby certifY that I have made due inquiry with respect to and am fully informed
as to the matters set out in this Certificate, and that the following are the reasonable expectations
of the City with respect to the Installment Purchase Agreement as of the date hereof made in
good faith pursuant to Treas. Reg. § 1.148-2(b)(2):
1. The City expects to receive from the original purchaser of the Installment
Purchase Agreement on this date the sum of $605,824.
2. The total amount received by the City from the Installment Purchase Agreement,
including all investment earnings thereon, will be used for the purposes set forth above and
below and are not in excess of the amount needed for such purposes.
3. The proceeds to be derived by the City from the Installment Purchase Agreement,
i.e, the sum of $605,824 will be deposited into the 2005 Installment Purchase Agreement Fund
established pursuant to the Resolution and will be used, together with investment earnings, to
pay the costs of the Project within three years from the date hereof. Such amount may be
invested at an unrestricted yield until expended for a period of up to three (3) years from the date
hereof.
Any proceeds remaining in the Fund at the completion of the Project or the end of
three years, whichever is earlier, will not be invested at a yield in excess of the yield on the
Installment Purchase Agreement (computed with regard to yield reduction payments as provided
in Treas. Reg. §1.148-5(c)).
Costs of the Project paid from the Installment Purchase Agreement proceeds will
consist only ofland, building, improvements thereon, equipment or other items of a capital
nature and to the extent are in reimbursement for costs paid before the date hereof, will be
reimbursed in conformity with the rules in Treas. Reg. § 1.150-2.
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(a) any amounts received by the City from the original Installment Purchase
Agreement not held to pay the costs of the Project (including engineering fees,
contingencies therefor), or to pay the costs of issuing the Installment Purchase
Agreement; and
(b) any amounts accumulated in the Debt Retirement Funds, or any similar
fund for the payment of the Installment Purchase Agreement to the extent that the City
reasonably expects to use such amounts to pay principal of and interest on the Installment
Purchase Agreement, held for longer than thirteen months after the receipt thereof; and
(c) any amounts held for longer than one year after the receipt by the City as
interest, dividends or other earnings form the investment of any amount described in
subparagraphs (a), (b) and (c) of this paragraph 10.
11. The proceeds of the Installment Purchase Agreement will not replace any moneys
of the City invested at a yield in excess of the yield on the Installment Purchase Agreement,
since no funds other than those described above are pledged for, or required to be used to pay,
debt service on the Installment Purchase Agreement, and no other funds are restricted to use
solely for the purposes of paying the costs ofthe Project which will not be so used and have
taken into account in determining the size of the Installment Purchase Agreement.
12. It is not anticipated that the City, all entities which issue obligations on behalf of
the City, and subordinate governmental units thereto will issue more than $5,000,000 of
obligations, the interest on which is exempt from Federal income taxation under Section 103 of
the Internal Revenue Code of 1986, as amended (the "Code"), and which are not private activity
bonds as defined in Code§ 141 during calendar year 2005. For this purpose, tax-exempt
obligations issued for the benefit of the City by another entity are also taken into account in
determining whether the $5,000,000 limitation will be exceeded. The Installment Purchase
Agreement is not private activity bonds. Ninety-five percent (95%) or more of the net proceeds
of the Installment Purchase Agreement will be used for local governmental activities of the City.
13. The City has designated the Installment Purchase Agreement as "qualified tax-
-exempt obligations" for purposes of the deduction of interest expense by financial institutions.
It is not anticipated that the City, all entities which issue obligations on behalf of the City, and
subordinate governmental units thereto will issue more than $10,000,000 of obligations, the
interest on which is exempt from Federal income taxation under Section 103 of the Internal
Revenue Code of 1986, as amended (the "Code"), and which are not private activity bonds as
defined in Code§ 141 during calendar year 2005. For this purpose, tax-exempt obligations
issued for the benefit of the City by another entity are also taken into account in determining
whether the $10,000,000 limitation will be exceeded. The City has not issued, and it is not
anticipated that it will issue, tax-exempt obligations on behalf of any other entity, during 2005.
14. Attached hereto as Exhibit A is a Tax Certificate executed by the undersigned
detailing certain representations and compliance with certain other provisions relating to the
Installment Purchase Agreement. Execution by the City of this Non-Arbitrage and
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EXHIBIT A
TAX CERTIFICATE
The undersigned, the Treasure of the City of Muskegon, County of Muskegon, State of
Michigan (the "City"), hereby makes the certification specified below with respect to the
Installment Purchase Agreement for the purpose of enabling National City Commercial Capital,
to render its opinion that interest is excluded from gross income for Federal income tax purposes
and is exempt from State of Michigan income taxation. The proceeds of the Installment
Purchase Agreement will be used as described in the Non-Arbitrage and Tax Compliance
Certificate of the City and all definitions and terms therein are hereby incorporated by reference.
A. The undersigned, on behalf of the City, hereby certifies as of the date hereof:
(1) All the proceeds from the Installment Purchase Agreement, including
investment earnings thereon, will be expended on the Project (as defined in the Resolution)
except for accrued and capitalized interest and proceeds used for the payment of costs of entering
into the Installment Purchase Agreement which will be spent within 30 days of the date hereof,
all as described in the Non-Arbitrate and Tax Compliance Certificate.
(2) Internal Revenue Service From 8038-G is true, accurate and complete.
(3) With respect to the Installment Purchase Agreement, the City reasonably expects
that:
(a) 85% of the spendable proceeds of the issue will be used to carry out the
governmental purposes of the issue within the 3-year period beginning on the date the
Installment Purchase Agreement was executed; and
(b) Not more than 50% of the proceeds of the Installment Purchase
Agreement will be invested in nonpurpose investments having a substantially guaranteed
yield for four years or more.
(4) There were and are no other obligations sold or to be sold within 15 days of the
date of sale of the Installment Purchase Agreement which (i) were or are to be sold pursuant to a
common plan of financing and (ii) are reasonably expected to be paid from substantially the
same source of funds.
(5) Except as is permitted by Code § 149(b), the Installment Purchase Agreement is
not federally guaranteed within these provisions; specifically the payment of principal or interest
with respect to the Installment Purchase Agreement is not guaranteed in whole or in part by the
United States or any agency or instrumentality thereof; the Installment Purchase Agreement is
not issued as part of an issue and five percent (5%) or more of the proceeds of which is to be
used in making loans the payment of principal or interest with respect to which is to be
guaranteed in whole or in part by the United States or any agency or instrumentality thereof, or
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business use tests or the private loan financing test (as described in paragraph B(l) above) to be
met for the entire term of the Installment Purchase Agreement except if:
(i) the rules ofTreas. Reg.§ 1.141-12 (as such maybe clarified, modified or superseded
by Revenue Procedure, Revenue Ruling, Treasury Regulation or statute) are met as
follows: (a) the City meets the following conditions to taking remedial action described
in Treas. Reg. § 1.141-12(a)(l )-(5): (1) the City reasonably expects that the Installment
Purchase Agreement will not meet the private business tests or the private loan financing
test (as those terms are used in Code § 141) for the term of the Installment Purchase
Agreement, (2) the weighted average maturity of the Installment Purchase Agreement is
not greater than 120 percent of the average reasonably expected economic life of the
property financed with the proceeds of the Installment Purchase Agreement as of the
date hereof, (3) the terms of any arrangement that results in satisfaction of either the
private business tests or the private loan financing test are bona fide and arm's-length, and
the new user pays fair market value for the use of the financed property, (4) the City must
treat any disposition proceeds as gross proceeds for purposes of Code § 148 and (5) all
the sale or investment proceeds of the Installment Purchase Agreement must have been
expended on a governmental purpose before the date of the deliberate action (except with
respect to such deliberate actions meeting the remedial action of redemption of
Installment Purchase Agreement described in (b )(1) hereof), and (b) the City takes a
remedial action described in (1) Treas. Reg. § 1.141-12(d) (redemption or defeasance of
nonqualified bonds), (2) Treas. Reg.§ 1.141-12(e) (alternative use of disposition
proceeds), or (3) Treas. Reg.§ 1.141-12(t) (alternative use offacilities), or
(ii) the rules of Rev. Proc. 97-15 (as such may be clarified, modified or superseded by
revenue Procedure, Revenue Ruling, Treasury Regulation or statute) are met which
require that the City make a payment to the Internal Revenue Service of an amount in lieu
of taxability of the Installment Purchase Agreement pursuant to the terms of a closing
agreement, or
(iii) the City obtains a written opinion of nationally recognized bond counsel, to the effect
that any such deliberate action will not adversely affect the validity of the Installment
Purchase Agreement or any exemption from federal income taxation to which the interest
on the Installment Purchase Agreement would otherwise be entitled.
For purposes of (i) above, any redemption of the Installment Purchase Agreement within Treas.
Reg. § 1.141-12(d) must occur within 90 days of the deliberate action, or a defeasance escrow
must be established for the Installment Purchase Agreement within 90 days of the deliberate
action. In such cases, the City must provide written notice to the Internal Revenue Service as to
the establishment of such escrow within 90 days of the date the defeasance escrow is established.
A defeasance escrow is an irrevocable escrow established to pay the Installment Purchase
Agreement on their earliest call date in an amount that, together with investment earnings, is
sufficient to pay all the principal of, and interest and call premium on, Installment Purchase
Agreement from the date the escrow is established to the earliest call date, and may not be
invested in higher yielding investments or in any investment under which the obligor is a user of
the proceeds of the Installment Purchase Agreement. In addition, dispositions of personal
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PARMENTER O'TOOLE
Attorneys at Law
John M. Briggs, 111
Michael l. Rolf Scott R. Sewick
George W. Johnson 175 West Apple Avenue • P.O. Box 786 • MUskegon, Michigan 49443-0786 Jeffery A Jacobson
W. Brad Groom Dawn M. Goodwin
Eric R. Gielow Phone 231.722.1621 • Fax 231.722.7866 or231.728.2206 Nancy Ann Hornacek
Jotm C. Schrier W'MV.Parmenterlaw.com Adam G. Zuwerink
Christopher L. Kelly
linda S. Kaare Of Counsel
James R. Scheuerle
Thomas J. O'Toole
Philip M. Steffan Eric J. Fauri
William J. Meier Michael M. Knowlton
Kei!h L. McEvoy
Anna Urick Duggins George A. Parmenter, 1903-1993
Scott M. Knowlton
July 26, 2005
National City Commercial Capital Corporation
Attention: Rose Konrath
Two Miranova Place
Suite 1000
Columbus, Ohio 43215
COUNSEL OPINION (LOCAL)
Re: Installment Purchase Contract
City of Muskegon/Crimson Fire
Assignee: National City Commercial Capital
Gentlemen:
We are the City attorneys for the City of Muskegon, Muskegon County, Michigan. We have
examined the Installment Purchase Contract (the "Contract") dated July 26, 2005 between the
City of Muskegon, a municipal corporation (the "Buyer"), and Crimson Fire, (Seller) pursuant to
which the City is purchasing the property described in the Contract (the "Property").
In addition, we have examined a certified copy of a Minutes of the City Commission dated July
12, 2005 authorizing the purchase of the Property under the terms of the Contract and such other
certificates as we have deemed necessary and appropriate under the circumstances.
Based upon the foregoing examination, we are of the opinion that (1) the Contract has been duly
authorized, executed and delivered, is a valid and binding obligation of the City of Muskegon
and is enforceable against the City of Muskegon in accordance with its terms; (2) the payment
obligation of the City of Muskegon under the Contract is a limited tax general obligation of the
City of Muskegon and the City is obligated to make an appropriation of a sufficient amount of
moneys from its general fund each year to pay principal and interest due that year on the
Contract and has pledged the general fund moneys from its general fund each year to pay
principal and interest due that year on the Contract and has pledged the general fund moneys of
the City of Muskegon for the payment of the Contract, subject to applicable constitutional and
statutory tax rate limitations; (3) upon the assignment of the Contract by the Seller to the Bank,
the Bank (and any assignee of the Bank) shall have a valid and enforceable right to receive and
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collect from the City of Muskegon all of the payments of principal and interest according to the
terms of the Contract.
We are aware of the necessary certifications by the City in connection with the requirement of
the Installment contract that it is to be designated as a "qualified tax-exempt obligation" for the
purpose of deduction of interest expense by financial institutions under the provisions of the
Internal Revenue Code of 1986, as amended. These include but are not limited to the
representation that the City reasonably anticipates that the amount of "qualified tax-exempt
obligations" (other than private activity bonds as described in Section 141 of the Internal
Revenue Code of 1986, as amended) which will be issued during the current calendar year by the
Obligor and any entities which issue obligations on behalf of the Obligor, will not exceed
$10,000,000. However, it appears that tax-exempt obligations will be issued on behalf of the
Obligor during this calendar year which, when aggregated with the amount of the Contract, are
reasonably expected to exceed $8,000,000.
The undersigned is further familiar with the City's certification that it is not expected that the
proceeds of the note would be used in a manner that would cause the note to be an "arbitrage
bond", under Section 148 of the Code and the regulations prescribed thereunder.
In our opinion the City is capable of and authorized to make said certifications in support of the
qualified tax-exempt nature of the obligation represented by the Installment Purchase Contract.
However, this letter does not constitute an opinion concerning the tax-exempt status of the
obligation or the continued effect of the certifications made by the City.
We express no opinion regarding the perfection of any secmity interest or other lien created
under the Contract or the enforceability of such security interest or other lien in the absence of
such perfection.
The enforceability of the Contract may be subject to the bankruptcy, insolvency, reorganization,
moratoriUlll and other similar laws affecting creditors' rights heretofore or hereafter enacted to
the extent constitutionally applicable and its enforcement may be subject to the exercise of
judicial discretion in appropriate cases.
V~yttWyyo~
John C. Schrier
Direct: 231.722.5401
Fax: 231.728.2206
E-Mail Address: [email protected]
G:\EDSI\FILES\001 00\1254.002\LTR\CA7531.DOC
CityForm 8038· Information Return for Tax-Exempt Governmental Obligations
G .... Under Internal Revenue Code section 149(e)
OMB NO. 1545-0720
(Rev. November 2000) .... See separate Instructions
Caution: If the issue price is under $100,000, use Form 8038-GC.
11 Education___________________________________________________________________ ___________________ _
12 Health and hospital______________________________________________________________________________________________________ _
13 Transportation...........................................................................................................
14 x Public safety____________________________________________________________ -------- _________________________________ _
15 D Environment (including sewage bonds)_______________________________________________________________ ----------------
16 0 Housing _________ ·--·--------·---------------------------···---···-------------------------------------·-··-----------------
17 0 Utilities ..................................•....•...•••................. ·------··-··········--·--···------------·············
18 0
Issue price of entire issue (enter amount from line 21, column (b))...............•.. , ....... ·-,-·:·.::····· ............. .
24 Proceeds used for bond issuance costs {including underwriters' discount) .......... .
25 Proceeds used for credit enhancement _______________ ··-·······--------------------·
26 Proceeds allocated to reasonably required reserve or replacement fund ....... .
27 Proceeds used to currently refund prior issues ______________________________________ _
28 Proceeds used to advance refund prior issues_ ........................... .
Total (add line 24 through 28) ................................................................................................
I
31 Enter the remaining weighted average maturity of the bonds to be currently
32 Enter the remaining weighted average maturity of the bonds to be advance refunded·--------------------------~ f-o-~,-------'-"'_c_;=='--
33 Enter the last date on which the refunded bonds will be called ______________________________________________________ ,... L - ' - " ' - ' - - - - - - - - -
the refunded bonds N/A
35 Enter the amount of the state volume cap allocated to the issue under section 141 (b)(5) ------------------- ____ _
36a Enter the amount of gross proceeds Invested or to be Invested in a guaranteed investment contract {see instructions)
b Enter the final maturity date of the guaranteed investment contract ..... - - - - - - - - - - - - -
37 Pooled flnancings: a Proceeds of this issue that are to be used to make loans to other governmental units
b If this issue is a loan made from the proceeds of another tax-exempt issue, check box ... D
issuer ... and the date of the issue ...
38 If the issuer has designated the issue under section 265(b)(3)(B)(i)(lll) (small issuer exception), check box ...........•...•.•............... ..._ x
39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box ......................................................... ····-····· ... 0
40 If the issuer has identi a hed e, check box_ ....... ··-·-·· ............ . .................. D
Sign
Here
Date
For Paperwor Cat. No. 637735
Commission Meeting Date: July 12, 2005
Date: JulyS, 2005
To: Honorable Mayor & City Commission
from: Community and Neighborhood Services
Department
R.IE: Approval resolution to the State of Michigan
SUMMARY OF REQUEST: To approve the attached resolution that
instructs the Community and Neighborhood Services office to obtain 280
lona from the State of Michigan, which is currently a vacant abandoned
home. The structure is located next door to 284 lona, a recently
completed infill home under the "Operation: At Long Last" project.
The department's objective is to obtain 280 lona for the minimum price
of $300.00, rehabilitate it and sale the property to a qualified family. The
obtaining of this property and the total rehabilitation is one additional
piece to the City's continuous neighborhood revitalization efforts.
FINANCIAL IMPACT: CNS office will supply $300.00 from the HOME
program income fund.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and instruct
the CNS office to send the document to the state of Michigan
COMMITTEE RECOMMENDATION: The Commission approved this
transaction during the December 7, 2004 meeting.
2005-64(d)
MUSKEGON CITY COMMISSION
RESOLUTION TO APPROVE THE PURCHASE OF
CURRENTLY STATE OWNED PROPERTY AT 280 IONA
WHEREAS, the City of Muskegon is dedicated to the redevelopment of its
neighborhoods and;
WHEREAS, the City of Muskegon is dedicated to promoting high quality
affordable single-family housing in the community and;
WHEREAS, the City of Muskegon is dedicated to promoting homeownership
throughout its neighborhoods;
NOW THEREFORE, BE IT RESOLVED that the City Commission hereby
approves the purchase of the currently state owned for $300, which is located at
280 Iona. After obtained the structure will be rehabilitated and sold to a qualified
buyer, to be used as a single family owner-occupied home.
Adopted this 12th day of July, 2005
Ayes: Spataro, Warmington, Carter, Davis, Gawron, Larson,
and Shepherd
Nays: None
CERTIFICATION
2005-64(d)
This resolution was adopted at a regular meeting of the City Commission, held on July
12, 2005. 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
Gail A. Kundinger, MMC
City Clerk
Date: July 12, 2005
To: Honorable Mayor and City Commissioners
From: Engineering
RE: City- MDNR Memorandum of Understanding
( MOU) for Bike Trail Along Laketon
SUMMARY OF REQUEST:
Approve the attached MOU between the City & MDNR for the construction of a 10'
asphalt trail starting at Getty and moving east to the extent the available funds of
$50,000 permits. The project will use City man power for the work while the state will
pay for the material and the rental of any other equipment necessary to do the work.
It is expected that the $50,000 from MDNR will be enough to construct a bike path
between Getty & Roberts.
FINANCIAL IMPACT:
The salaries of those individuals that will be involved in the work which is estimated at
about $10,000 and the use of City owned equipment.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Approve the attached MOU
COMMITTEE RECOMMENDATION:
~~ Michigan Department of Natural Resources
DNRtl!' Forest, Mineral and Fire Management
MEMORANDUM OF UNDERSTANDING AND AGREEMENT FOR THE Grant Agreement Number:
RECREATION TRAILS PROGRAM NRT 2004-21-02
This information is required by authority of Part 711 of Act 451 of 1994, as amended to qualify for reimbursement.
Grantee:
City of Muskegon (It is expressly understood by and
Attn:
between the parties hereto that the
Bryon L. Mazade proposal bears the above Grant
Agreement Number and associated
Address
933 Terrace documents including all attachments, are
by this reference made part of this
City State ZIP Code
Muskegon, MI 49443 understanding. All materials bearing this
number constitute the entire
Federal Employer Identification Number (FEIN):
understanding between the parties.)
38-6004S22
An agreement is made between the MICHIGAN DEPARTMENT OF NATURAL RESOURCES (hereafter called the
Department; state Trails Coordinator, contracting officer) and the above grantee for funding recreation trail
surface and corridor improvements that will extend the Lakeshore Trail along Laketon Avenue
beginning at the west line of Getty Street in Section 28 TlON, R16W extending to Creston.
Reimbursement of materials and equipment rental necessary to complete trail improvement items
including paved surface improvements, site restoration, and properly designated road crossings.
Conditions: Plans and specifications are to be submitted to the Department of Natural Resources
for review and approval prior to construction.
The project period shall be from Date State Trails Coordinator signs to 09/30/200S. This understanding shall
convey a sum of money for eligible costs, but which shall not in any event exceed Fifty Thousand $so, ooo dollars.
All projects will comply with the Americans Disabilities Act of 1990.
All work must comply with State and Federal guidelines rules, regulations and laws.
Additional guidelines and specifications for agreement:
• Project Coordination: The Department contact for this project is Annamarie Bauer, Michigan Department of Natural
Resources, hereafter referred to as the Coordinator. The Grantee will confer regularly with the Coordinator on the
progress of this project.
• Payment: Where applicable, the Department agrees to reimburse the Grantee for authorized expenditures upon
verification of actual expenditures up to 90% of the grant amount. The Department will pay the final 10% upon project
completion and final audit. Total payment under this grant is not to exceed the actual costs or $so, oooo, whichever is
less. Initial request for payment shall be on the form attached (additional forms are available from the address at the
end of this agreement). All requests for payment must be submitted quarterly and received in the DNR office by the
151h of the month following the quarters end. A final request must be made by october 151h, 2oos. Requests for
payment will include copies of invoices and cancelled checks for all expenditures.
• Fiscal Control and Accounting Procedures: In addition to the summary documentation submitted to the
Department, the Grantee will keep complete financial records. Basic documents required to be maintained for audit
include purchase orders, vouchers, authorized payments, and time records for individual employees' charged to this
program. All financial records for this grant will be retained by the Grantee until audited, or for a minimum of three (3)
years, whichever is less. Records under audit will be retained until the audit is closed.
• Procurement: The grantee will use their own procurement procedures provided they reflect applicable State and
local laws and regulations, to include low bidder competition bid process as applicable.
• Prevailing Wage and Fringe Benefits: Any sub-contractor performing work under this agreement must comply with
the requirements of 1965 State of Michigan Public Act 166.
Page 1 of 2 PR 4165-1 (Rev. 09/08/2004)
• Insuranc e: The Gran tee will add the State of Michigan, Departmen t of Natural Resources as an additional insured
party on their liability insurance policy. Proof of this must be supplied to the state Trails Coordinator prior to the
Department releasing any reimbursements for this grant.
• Changes: From time to time, changes may be needed in the scope of the project and the grant. All changes must be
submitted in writing to the Coordinator and approved by the Department prior to being implemented. Changes
implemented prior to approval by the Department will not be eligible for reimbursement.
• Audits: The project and related reports are subject to aud it by the Department. This may include both financial
audits and site visits.
• Hold Harmless: Each party to this agreement will be responsible for its own negligent acts, including the acts of its
officers, agents , and employees.
• Right of Cancellation: This grant agreement may be cancelled by either party upon giving 30 days written notice to
that effect to the other party.
The individuals or officers signing on behalf of the parties to this Agreement certify by their signatures that they have read,
understand and agree to comply with this Agreement and have the authority to enter into this Agreement on behalf of the
Grantee.
COORDINATOR:
Title: ?'TATf- 'll2AiL2 CoCJYG-Q/ f'--5~
Date: f:) / 2- { () S"
GRANTEE'S REPRESENTATIVE{S):
P
Date: t"] , aJ-os-
P<::)
Printed Name: _ __ _ __ _ _ __ _ _ __ _ __ Title:
Signature: - - - - - - - - - - -- - - - - - Date:
Please sign and return both copies of this sub agreement to:
ATTN: Grants COORDINATOR
Program Services Section
FOREST, MINERAL AND FIRE MANAGEMENT
MICHIGAN DEPARTMENT OF NATURAL RESOURCES
PO BOX 30452
LANSING Ml 48909-7952
(a fully executed copy will be returned for your files)
Page 2 of 2 PR 4165-1 (Rev. 09/08/2004)
Date: July 12, 2005
To: Honorable Mayor and City Commissioners
From: Gail A. Kundinger, City Clerk
RE: Fireworks Display Request for the Big Fat Greek
Festival
SUMMARY OF REQUEST: At the June 281h Commission Meeting you
approved the request from Summit Pyrotechnics for a fireworks display
permit for the Big Fat Greek Festival on July 3dh. They are now
requesting to set the fireworks off from land instead of the Barge at
Heritage Landing. Fire Marshall Metcalf will inspect the fireworks on the
day of the events.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval contingent on site plan
inspection and inspection of the fireworks.
2005-64(f)
PERMIT
FOR FIREWORKS DISPLAY
Act 358, P.A. 1968
This permit is not transferable. Possession of this permit by the herein named person will
authorize him to poss~ss, transport and display fireworks in the amounts, for the purpose, and
at the place listed below only.
TYPE OF DISPLAY: (X) PUBLIC DISPLAY ( ) AGRJCULTURAL PEST CONTROL
ISSUED TO: Steve Franklin
NAME
Summit Pyrotechnics
ADDRESS AGE
3500 S. Getty, Muskegon, MI
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REPRESENTING The Big Fat Greek Festival
NA>\IfE OF ORGA..'liZATION, GROUP, FIR.\1 OR CORPORATION
ADDRESS
NUMBER & TYPES OF FIREWORKS:
9 - 2.5" cakes 100 - 4" shells
30 - 6" shells 400 3" shells
30 - 5" shells 2 - 8" shells
c
DISPLAY: Heritage Landing
EXACT LOCATION
Furthest point north at Heritage Landing
CITY, VILLAGE, TOWNSHIP (rain date - DATE
TIME
-July 30, 2005 July 31. 2005) 10:25 p.m.
BOND OR INSURANCE FILED: (~ YES ( ) NO AMOUNT $1,000,000
ISSUED BY:
Issued by action of the tvUJSKEGON CITY COMMISSION
(CI)Unc il, a>mmiu iol\, - d )
of the CITY of MUSKEGON
(rwne o( ciry, villaac. cownship)
on the 12th
(II!P"&Nce It posa11on of c.ouncil. c.ommiuion or boud rc-prc:sctn.ac.ivc}
F M- 32( 12- 68) RECE1VETJ
APPLICATION
!lll FOR FIREWORKS DISPLAY PERMIT
Act 358, P.A. 1968
l DATE OF APPLICATI O~
~·
...., .., ,....,
~ ~·
/""\"-' ' 0 ·-3 ·- 0 j
1. T Y PE OF DISPLAY:
~ Public Disploy D Agr i cultural Pest Control
2. APPLICANT
?jtE OF PERSON ADDRESS AGE: Mu st be 21 or over
~·f.;_: ;l?_,- Fr - ;I.-It ·) -=3. )' 21 /' ,). &~· 7/v
IF A CORPORATI OAName of President
/1
ADDRESS
,
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v
F'-<- T- ;;/"{' P..p_t c J---e ~ 1/ v'c<. /
3. PYROTECHNIC OPERATOR
r ,/?.
ADDRESS AGE: Must be 21 or over
-~,, ,~ )-fr-".t'~~~u/cc;
NAM E
S/,A? .-"M -~ s·L::YJ 5, 0? ;7(/
EXPERIENCE : T f
N UMBER OF YEARS I NUMBER OF DISPLAYS WHERE
/.)- fJ·-of> -r 1~£
, 11.. WI. F!_ .I _£]C_ LL26( / 0fr. :ill A) /. 1 /l;z .
/ / /
NAMES OF ASSISTANTS :
NAME ADDRESS AGE
NAME ADDRESS AGE
4. NON- RESIDENT APPLICANT
NAME ADDRESS
Name of Mich i gan Attorney or Resident Agent ADDRESS TELEPHONE N UMBER
5. EXACT LOCATION O F PROPOSED DISPLAY
~C:t~~:;J
-c-
DATE
c_, Lall!J.d_r'J09
·
(__fil.Lthe>T /,),_!2;;J+
.J TIME
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.J_A fv .?Dr/" . ""u r·,,J d!Ct f e... 1 ~t ? 1'5r / / ) ';2.. 5-
NUMBE~
1
6. AND KINDS OF Fl REWORKS TO B E DISPLAYED
'5J_, .· . .2, s· (( t"~a ~~,...:.- c;
~ID> ··- ~
' ,-:.?
•I 51t -cf I.J ,:J --- s rr 5Ar::/6;
--~'0 ··- .).- l ' f
I I
(f'
J()t:J - 'fl(
¥ov - 3/( II
MANNER & PLACE OF STORAGE PRIOR TO DISPLAY
/-J f ,z::::- /
7
/1 / ) / \ <') , / ?.r / 5~ /Ccq .P
/
S!;.I' ~ 1e'L/
I/
Tc; 5th iJu h•ur
(
L--
r~ /~'', rJ-/ S£. · I
(Subject to Appr oval of Loca l Fi re Authorities)
7, FINANCIAL RESPONSIBILITY
I A, AMOUNT OF BONO OR INSURANCE
1 to be set by municipality) $
B. BONDING CORPORATI ON OF IN SURANCE COMPANY: NAME ~ ·ADDRESS