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CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 9, 2003
CITY COMMISSION CHAMBERS@ 5:30 P.M.
AGENDA
• CALL TO ORDER:
• PRAYER:
• PLEDGE OF ALLEGIANCE:
• ROLL CALL:
• HONORS AND AWARDS:
a. Rodney Shunta.
b. "One Book".
• PRESENTATIONS:
• CONSENT AGENDA:
a. Approval of Minutes. CITY CLERK
b. Lighthouse Acre Application. LEISURE SERVICES
c. Sale of Non-Buildable Lot at 1024 Albert Avenue. PLANNING &
ECONOMIC DEVELOPMENT
d. Sale of Non-Buildable Lot at 1446 Ducey Avenue. PLANNING &
ECONOMIC DEVELOPMENT
e. Purchase of 877 Emerald. COMMUNITY & NEIGHBORHOOD
SERVICES
f. Approval of Collection and Credit Reporting Services
Contract/Agreement with Paramount Collection Services. L.L.C.
TREASURER
g. Approval of Parking Ticket Services Contract/Agreement with MSB
Parking Data Ticket. FINANCE and TREASURER
h. FIRST READING: Amend the City of Muskegon Code of Ordinances
for an Increase in Fines for Illegal Parking. FINANCE and
TREASURER
• PUBLIC HEARINGS:
• CITY MANAGER'S REPORT:
• UNFINISHED BUSINESS:
a. SECOND READING: Rezoning Request for Property Located at 1996
W. Sherman Blvd. PLANNING & ECONOMIC DEVELOPMENT
• NEW BUSINESS:
a. Health Care Opt Out. FINANCE
b. Consideration of Bids: Sanitary Sewer Rehab (Lining}.
ENGINEERING
c. Ballot Wording. CITY CLERK
• ANY OTHER BUSINESS:
• PUBLIC PARTICIPATION:
• Reminder: Individuals who would like to address the City Commission shall do the following:
• Be recognized by the Chair.
• Step foiward 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.)
• 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 C!TY OF MUSKEGON. PLEASE CONTACT GAIL A. KUNDINGER,
CITY CLERK, 933 TERRACE STREET, MUSKEGON, Ml 49440 OR BY CALLING (231) 724-6705 OR TDD: (231) 724-4172.
Date: September 9, 2003
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, August 26, 2003.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
SEPTEMBER 9, 2003
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 5:30pm, Tuesday, September 9, 2003.
Mayor Warmington opened the meeting with a prayer from Pastor Gerald
Wahr of McGraft Memorial Congregational 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 Robert Schweifler,
Commissioners Lawrence Spataro, Stephen Gawron, William Larson, and Clara
Shepherd; City Manager Bryon Mazade, City Attorney John Schrier and City Clerk
Gail Kundinger.
2003-73 HONORS AND AWARDS:
a. "One Book". Commissioner Spataro presented the proclamation
to Marty Ferriby.
b. Rodney Shunta. Mayor Warmington presented the resolution to
Rodney Shunta.
2003-74 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, August 26, 3003.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval of the minutes.
b. Lighthouse Acre Application. LEISURE SERVICES
SUMMARY OF REQUEST: To adopt the resolution and authorize staff to submit the
application for securing the Lighthouse acre property from the Federal Government.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approve
c. Sale of Non-Buildable Lot at 1024 Albert Avenue. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant non-buildable lot (Parcel
#24-612-000-0538-00) at 1024 Albert Ave. to Lois Meisenheimer, 1032 Albert Ave.,
Muskegon, Ml 49442. Since this is a marginal lot in size and not in keeping with most
other lots in the neighborhood, the Land Reutilization Committee (LRC) recommends
treating it as an unbuildable lot. Approval of this sale will allow the adjacent property
owner to expand her current yard. The original recommendation made by LRC was
to split the lot between the two adjacent property owners. However, one of the
owners withdrew their application due to concerns involving power lines intertwined
in a large oak tree located on the property.
FINANCIAL IMPACT: The sale of this lot will allow the property to be placed back on
the City's tax rolls thus relieving the City of continued maintenance cost.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: LRC recommended approval of the request at their
August 26, 2003 meeting.
d. Sale of Non-Buildable Lot at 1446 Ducey Avenue. PLANNING &
ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant unbuildable lot (Parcel #24-
611-000-0447-00) at 1446 Ducey Avenue to Habitat for Humanity, owners of 1438
Ducey Avenue, Muskegon, Ml 49442. Approval of this sale will allow Habitat for
Humanity to join this non-buildable lot with their current non-buildable lot and build a
1440 square foot, 3 bedroom home. This project is a partnership between Muskegon
County Habitat for Humanity and the Muskegon Area Technical Training Program.
This project provides instruction in construction skills for junior and senior students
throughout Muskegon County and the end result is a home for a low-income Habitat
family. According to their drawings, they plan to include a variable front roof line,
shutters, a basement, and it will also be 'stick built'.
FINANCIAL IMPACT: The sale of this lot will allow the property to be placed 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 the resolution.
COMMITTEE RECOMMENDATION: The Land Reutilization Committee recommended
approval of this request based on the fact that the adjoining property already has a
large lot at their August 26, 2003 meeting.
e. Purchase of 877 Emerald. COMMUNITY & NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve the purchase of the property located at 877
Emerald (City of Muskegon revised Plat of 1903 Blk 204 N 40 feet lot 15) for its
appraised value of 3,000 from the estate of Mr. And Mrs. James Jones. If the
purchase is approved by the Commission, the CNS department will demolish the
existing structure combine the lot with an adjacent parcel and build a new
constructed home under the City's Infill program in the next year.
FINANCIAL IMPACT: Funding for purchase and demolition will come from the City's
2003 HOME funding.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve the request.
f. Approval of Collection and Credit Reporting Services
Contract/Agreement with Paramount Collection Services. L.L.C.
TREASURER
SUMMARY OF REQUEST: It has been practice to monitor the City of Muskegon outside
collection and credit reporting services, however a full review had not been done in
approximately five years. Upon reviewing several proposals submitted for review, it is
the staff's recommendation to award the contract for collections and credit
reporting services to Paramount Collection Service, L.L.C. (PCS). PCS was selected
based on the complaint's ability to perform the services required and their level of
professional standards. Also, PCS is owned and operated disadvantaged sub-group
and is located in North Muskegon, Michigan. Because PCS is a local area business, it
is anticipated the City of Muskegon will receive better customer service, enable the
public to visit and make payments directly to the agency, which will have a greater
insight into the local economic situations.
FINANCIAL IMPACT: Staff expects the cost of the contract will be more than offset by:
1) Reduction in administrative time spent personally attending to collection
matters (research, correspondence, and litigation).
2) Reduction in bad debts that are written off and improved collections due to
the knowledge of debtors ("slow pays") that the City will be using a local
professional third party collection/credit reporting agency.
3) Enhanced cash flow from accounts receivable.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approval of the collection and credit reporting service
agreement with Paramount Collection Services, L.L.C.
g. Approval of Parking Ticket Services Contract/Agreement with MSB
Parking Data Ticket. FINANCE and TREASURER
SUMMARY OF REQUEST: In an effort to reduce costs, the City staff has explored
outsourcing the administrative functions of the parking ticket system. The staff has
reviewed other proposals and had determined that the best and most economical
proposal was submitted by Municipal Business Services Data Ticket (MSB).
FINANCIAL IMPACT: Staff expects the cost of the contract will be more than offset by:
1) Reduction in administrative staff time and costs associated with procession
parking tickets, notices, and etceteras.
2) Increase in collected revenue due to the knowledge and experience of
company in dealing with parking ticket debts as well as continual updates of
debtor information for enhanced payment enforcement.
3) Proposed increase in fines.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approval of the parking ticket services agreement with
MSB Parking Data Ticket.
h. FIRST READING: Amend the City of Muskegon Code of Ordinances
for an Increase in Fines for Illegal Parking. FINANCE and
TREASURER
SUMMARY OF REQUEST: The City's parking fines were last adjusted in 2000. Recently,
City staff reviewed the fine structure in light of the City's budget situation and in order
to cover the cost of purchasing the new parking ticket equipment as previously
presented, an increase of $2.50 per violation will be necessary to cover this
investment. Also, this increase will affect the current penalty fine structure. However,
this increase in the penalty fee structure is needed to reach the minimum threshold
needed to place an outstanding receivable item on individuals credit report.
FINANCIAL IMPACT: Once the new parking ticket equipment investment is recouped,
the City will see a slight increase in parking ticket revenue. Also, an increase in the
penalty structure will assist in offsetting the collection costs involved.
BUDGET ACTION REQUIRED: None at this time. The 2004 budget will incorporate the
projected revenues from the fine increases.
STAFF RECOMMENDATION: Approval of the ordinance raising the fines for illegal
parking.
i. Appointment to Downtown Development Authority Board CITY
CLERK
SUMMARY OF REQUEST: To appoint Michael Kleaveland to the Downtown
Development Authority Board.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To make the appointment.
COMMITTEE RECOMMENDATION: The Community Relations Committee
recommended the appointment.
Motion by Commissioner Spataro, second by Commissioner Gawron to approve the
consent agenda.
ROLL VOTE: Ayes: Warmington, Gawron, Larson, Schweifler, Shepherd, Spataro
Nays: None
MOTION PASSES
2003-75 UNFINISHED BUSINESS:
a. SECOND READING: Rezoning Request for Property Located at 1996
W. Sherman Blvd. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to rezone property owned by Shermac, Inc., located
at 1996 W. Sherman Blvd., from B-1, Limited Business to B-2, Convenience &
Comparison.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommended denial of the request due to lack of
compliance with the Master land Use Plan.
COMMITTEE RECOMMENDATION: The Planning Commission recommended approval
of the request at their 8/14 meeting. The vote was unanimous with T. Harryman and
B. Smith absent.
Motion by Commissioner Larson, second by Commissioner Shepherd to approve the
request to rezone the property at 1996 W. Sherman from B-1, Limited Business to B-2,
Convenience & Comparison Business.
ROLL VOTE: Ayes: Larson, Schweifler, Shepherd, Warmington
Nays: Gawron, Spataro
MOTION PASSES
2003-76 NEW BUSINESS:
a. Health Care Opt Out. FINANCE
SUMMARY OF REQUEST: In response to employee suggestions, we are exploring the
possibility of generating additional savings through the healthcare opt out program.
Under this program employees who do not need City health coverage receive a
cash payment. The City in turn saves by not having to pay premiums for the
employee. This proposal is to increase the opt out payment amount from $1,300 per
year to $3,000 per year provided that enough new participants enroll to make it at
least a break-even proposition for the City.
FINANCIAL IMPACT: Healthcare savings will depend on the number of new program
participants. Eight new participants are required for the City to "break even".
BUDGET ACTION REQUIRED: If enough new participants enroll in the program, budget
adjustments may be needed in the departmental budgets where program
participants are located.
STAFF RECOMMENDATION: Authorize an increase in the annual opt out payment from
the current $1,300 to $3,000 effective with the first pay period after eight new opt
participants have signed up for the program. If there are not enough new
participants signed up by November 1, the matter will be brought back for further
consideration.
Motion by Commissioner Larson, second by Commissioner Gawron to approve the
health care opt out option.
ROLL VOTE: Ayes: Gawron, Larson, Schweifler, Shepherd, Spataro, Warmington
Nays: None
MOTION PASSED
b. Consideration of Bids: Sanitary Sewer Rehab (Lining).
ENGINEERING
SUMMARY OF REQUEST: Award the sewer lining contract, using the alternate bid of
project completion by the end of November, to lnsituform Technologies out of the
Detroit Area. lnsituform was the lowest responsible bidder for both, the base bid
(completion by the end of September) and the alternate bid (completion by the end
of November). Their bid, using the alternate, is $123, 438.
FINANCIAL IMPACT: The construction cost of $123,438 plus related engineering
expenses.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Award the contract to lnsituform Technologies, Inc.
Motion by Commissioner Larson, second by Commissioner Spataro to award the
contract to lnsituform Technologies, Inc.
ROLL VOTE: Ayes: Larson, Schweifler, Shepherd, Spataro, Warmington, Gawron
Nays: None
MOTION PASSES
c. Ballot Wording. CITY CLERK
SUMMARY OF REQUEST: To approve the ballot language for the November 4, 2003,
City General Election and designation position on the ballot.
FINANCIAL IMPACT: None
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Approval.
Motion by Vice Mayor Schweifler, second by Commissioner Spataro to approve the
ballot language for the November 4, 2003, election and designate Archimedes
Group I petition first on Ward I and Ward Ill and Charity petition first on Ward II and
Ward IV.
ROLL VOTE: Ayes: Schweifler, Shepherd, Spataro, Warmington, Gawron, Larson
Nays: None
MOTION PASSES
ANY OTHER BUSINESS: Mayor Warmington presented Karen Buie with a Certificate of
Public Rec ognition for her servic e as a City Commissioner.
PUBLIC PARTICIPATION: Comments were heard from the public.
The Regular Commission Meeting for the City of Muskegon w as adjourned at 8:07PM.
Respectfully submitted,
Lo.~~
Gail A. Kundinger, MMC
City Clerk
2003-73(a)
CITY OF MUSKEGON
STATE OF MICHIGAN
PROCLAMA TJON
WHEREAS, the City of Muskegon pauses to honor and recognize Rodney
Shunta for selflessly risking his life to rescue Jennifer Campbell
from Lake Michigan on Sunday evening, the 24th day of
September, 2003; and
WHEREAS, a catastrophe was avoided because of the skillful and quick
response to danger and knowledge of life saving demonstrated
by Rodney Shunta; and
WHEREAS, this courageous action in averting what could have been a
tragic loss to family, friends, and community was an act of
heroism which deserves special recognition by the governing
body of this city; and
NOW, THEREFORE, BE IT RESOLVED, that I, Steve Warmington, Mayor of
the City of Muskegon, and speaking on behalf of the City
Commission and citizens of Muskegon, do hereby set aside
September 9, 2003, to honor Rodney Shunta for his heroism.
IN WITNESS WHEREOF, I hereunto set
my hand and cause the seal of the City to
be affixed this 9th day of September, 2003.
Stephen J. Warmington, Mayor Stephen Gawron, Commissioner
Robert Schweifler, Vice Mayor William Larson, Commissioner
Clara Shepherd, Commissioner
Lawrence Spataro, Commissioner
2003-73(b)
CITY OF MUSKEGON
STATE OF MICHIGAN
PROCLAMATION
WHEREAS, the purpose of One Book, One County is to build community in this diverse
County by encouraging individuals to share an experience, namely reading and
discussing a good book; and
WHEREAS, to truly celebrate diversity, we need to talk to each other and one way to do that
is by reading and talking about a book; and
WHEREAS, beginning October, 2003, the goal is to have people across Muskegon County
reading and discussing "The Watsons Go to Birmingham - 1963"; and
WHEREAS, the project activities will include:
1. Book discussion sessions will be held at all eleven public libraries, as well
as within organizations and schools.
2. "Read It and Lead It" training sessions, sponsored by the Friends of
Libraries organizations, will be held in three locations across the county.
3. A discussion guide prepared by library staff will be widely available.
4. A breakfast will be held on September 15, anniversary of the Birmingham
bombing, to remember that event and to mark the start of the project.
5. Author Christopher Paul Curtis will make a public appearance at the
Waters Center for the Performing Arts, Muskegon Heights High School, in
the evening of October 14. Mr. Curtis will appear to school audiences
twice on the following day.
NOW, THEREFORE, BE IT RESOLVED, that I, Steve Warmington, Mayor of the City of
Muskegon, and speaking on behalf of the City Commission proclaim October,
2003, as the beginning of "One Book, One County" and urge all citizens to
support this effort by reading the book.
IN WITNESS WHEREOF, I hereunto set my hand and
cause the seal of the City to be affixed this 9th day of
September, 2003.
Stephen J. Warmington, Mayor Stephen Gawron, Commissioner
Robert Schweifler, Vice Mayor William Larson, Commissioner
Clara Shepherd, Commissioner Lawrence Spataro, Commissioner
SEP-02-2003 15:39 FROM HACKLEY LIBRARY TD 7244178 P.02
One Book, One County
Purpose:
To build community in this diverse county by encouraging individuals to share an
experience, namely reading and discussing a good book.
We celebrate our diversity here in Muskegon county, but do we really cross the baniers of
age, sex, class, race and income to truly engage the people we share physical space with?
In order to truly celebrate diversity, we need to talk to each other. One way to do that is
by reading and talking about a book.
This project is a part of the Muskegon Arts and Humanities Festival.
Project Qy:eniew:
Our goal is to have people across Muskegon county reading and discussing "The Watsons
Go to Birmingham • 1963" by Flint author Christopher Paul Curtis• in October 2003.
Project Activities:
I. Book discussions sessions will be held at all eleven public libraries, as well as within
organizations and schools.
2. "Read It and Lead It" training sessions, sponsored by the Friends of Libraries
organizations, will be held in three locations across the county.
3. A discussion guide prepared by library staff will be widely available.
4. A breakfast will be held on September 15, anniversary of the Birmingham
bombing, to remember that event and to mark the start of the project.
5. Author Christopher Paul Curtis will make a public appearance at the Waters Center
for the Performing Arts, Muskegon Heights High School, in the eveing October 14.
Curtis will appear to school audiences twice on the following day.
Project Steering Committee:
Martha Feniby -Chair, Susan Kroes, Mary Southwick - Hackley Public Library
Elizabeth Winsche, Michele Whittkopp - Muskegon County Library
Bette Carlson - White Lake Community Library Merle Scolnik - A.A.U.W.
Frances Fisher - Friends of the Library Angelyn Leaver - M.A.LS_D
Phyllis Wahlberg - Muskegon Public Schools Marty Mattson - Muskegon Chronicle
• 0 . .
Supportmgrgamzatmns:
County of Muskegon Muskegon Community College
N,A.A.C.P. Friends ofHaclcley Public Library
American Association of University Women Friends of White Lake Community Library
Muskegon Children's Museum Friends of Norton Shores Branch Library
Muskegon Arts and Humanities Festival M.A.I.S.D.
Muskegon Public Schools Hackley Public Library
Muskegon County Library White Lake Community Library
Institute for Healing Racism Muskegon Heights Public Schools
Reeths -Puffer Schools Urban League
TO 7244178 P.03
SEP-02-2003 15:39 FROM HACKLEY LIBRARY
One Book, One County, continued
The Book and the AuthoC'*
"'!he Watsons Go to Birmingham - 1963" is about a Flint, Michigan African-American
family that makes a trip down to the racially divided South during the civil rights era.
Christopher Paul Curtis's tale of a close-knit auto worker's family has won Corett& Scott
King Award honors and is a Newberry Medal honor book, and has also been honored by
the New York Times, Publishers Weekly, and the American Library Association.
This book was selected because it is a story that speaks to experiences and ideas that
touch and are important to Muskegon County people. Additional criteria for selecting this
book included accessibility (length, reading level, style), low purchase price, wide
availability in libraries and schools, availability in alternative formats such as large print
and audio, and a connection to the Muskegon Arts and Humanities Festival theme of
"Work and Play". This is a sad book, a funny book, and a moving book with much to
discuss. "The Watsons Go to Birmingham - 1963" has wide appeal and is enjoyed from
fifth graders through adults.
Contrjbutiou and Support:
Support is being sought from individuals, book clubs, organizations and businesses.
Contributions will be acknowledged. Checks may be made payable to "Muskegon County
Library. One Book, One County Project".
Book Buddy $ 25 and up
Reading Advocate $ 100 and up
Power Reader $ 250 and up
Literary Lion $ 500 and up
Book Benefactor $1,000 and up
)Jnderwciters;
Underwriters provide major financial and in-kind support to the project. As of August 4,
the list of underwriters includes:
M.A.I.S.D. Muskegon Public Schools
Hackley Public Library Muskegon County Library
Muskegon Chronicle Fisher Family Fund - CFMC
Muskegon Community College Kroes Corporation
N.A.A.C.P. Muskegon County
TOTAL P.03
Date: August 29, 2003
To: Honorable ~~Y~ an~ City Commissioners
From: Ric Scott ',,,ttf;:r
RE: lighthouse Acre Application
SUMMARY OF REQUEST:
To adopt the attached resolution and authorize staff to
submit the application for securing the Lighthouse acre
property from the Federal Government
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Approve
COMMITTEE RECOMMENDATION:
Affirmative Action
(23 1)724-6703
FAX,: (23 1)722- 1214
tz\sl)'ffffi\J"s"lization
FAX: (23 1)726-5 18 1
City Manager
(2311724-6724
West Michigan's ShOl'Cline CiLy
FAX: (23 1)722-12 14
Civil Service
(231)724-67 16
FAX: (23 1)724-4405 Date: August 29 , 2003
To: H~norable M;Y~ ~City Commissioners
Clerk
(23 1)724-6705
FAX: (23 1)724-4 178 From: Ric Scott ftt'"(/z)W
Community and Re: Lighthouse Acre Application
,2~N
,h.iw~ces
FAX: (23 1)726-2501 The city is in the process of trying to get the
Lighthouse Acre property deeded over to the City of
Computer Info,
Muskegon. The use for the property would be for the
,2~rn\ •ts6744
FAX: (23 1)722-4301 sanitary lift-station that currently exists there and
for park purposes .
~~,\'~~t J%fept.
FAX: (23 I)727-6904 Staff is requesting that you adopt the attached
resolution authorizing me to proceed with the process
11mm~';ll~ and to authorize me to submit the attached application
FAX: (23 1)724-6768
to proceed with the procurement process.
Staff is requesting that the Federal Government give the
property to the City, so there will be no financial
costs to obtain the property. There will be minimal
Income Tax
(231)724-6770
FAX: (23 1)724-6768
maintenance costs after the property is secured , but the
neighbors are currently doing most of the maintenance of
1m m~~i l 1~ viccs the property and future costs would be minimal .
FAX: (23 1)728-4371
Thank you for your consideration.
Leisure Services
(231)724-6704
FAX: (23 1)724-1196
Planninl!!Zoning
(231)724'-6702
FAX: (23 1)724-6790
h~~%\~~~l1fi Dept,
FAX: (23 1)722-4 188
T reasurer' s Office
(231)724-6720
FAX: (231)724-6768
n'flffi~'.~~~\ Dept.
FAX: (231)724-6768
\Vnte r Filtra tion
(231)724-4106
FAX: (231)755-5290
City of Muskegon, 933 Terrace Street, P..O. ~ox 536, Muskegon, MI 49443-0536
www.shorelmec1ty.com
RESOLUTION NO. 2003-74(b)
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING SUBMISSION OF APPLICATION TO THE
DEPARTMENT OF HEALTH 7 HUMAN SERVICES FOR FEDERAL SURPLUS
PROPERTIES (LIGHTHOUSE ACRE)
WHEREAS, certain real property owned by the United States, located in the
County of Muskegon, State of Michigan, has been declared surplus
property and is subject to assignment for disposal for homeless or
public health purposes by the Secretary of Health and Human
Services under the provisions of Section 203(k)(1) of the Federal
Property and Administration Services Act of 1949, as amended,
and rules and regulations promulgated pursuant thereto, more
particularly described as follows,
Muskegon Land
GSA no.: 1-U-Ml-0610:
WHEREAS, The City of Muskegon needs and can utilize said property for public
health purposes in accordance with the requirements of said
Act and the rules and regulations promulgated thereunder of which
this Board is fully informed, including commitments regarding use
and time such use shall commence.
NOW, THEREFORE, BE IT RESOLVED, that the City Commission of the City of
Muskegon has legal authority, is willing, and is in a position
financially and otherwise to assume immediate care and
maintenance of the property, and that Ric Scott, the Director of
Leisure Services is hereby authorized, and for and on behalf of the
City of Muskegon, to do, and perform any and all acts and things
which may be necessary to carry out the foregoing resolution,
including the preparing, making, and filing of plans, applications,
reports, and other documents: the execution, acceptance, delivery,
and recordation of agreements, deeds and other instruments
pertaining to the tran_sfer of said property; and the payment of any
and all sums necessary on account of the purchase price thereof,
including fees or costs incurred in connection with the transfer of
said pr9operty for surveys, title searches, appraisals, recordation of
instruments, or escrow costs, together with any payments by virtue
of nonuse of deferral of use of the property.
If the applicant is unable to place the property into use within the
time limitation indicated below (or determines that a deferral of use
should occur), it is understood that the City of Muskegon will pay to
the Department the sum of 1/360 of the fair market value for each
month of nonuse, beginning 12 months after the date of the deed,
or 36 months where construction or major renovation is
contemplated.
If the application is approved, a copy of the application and
standard deed will be filed with the permanent minutes of the
Board.
City Commission of the City of Muskegon
933 Terrace St.
Muskegon, Michigan 49443
Adopted this 9th day of September, 2003
AYES: Warmington, Gawron, Larson, Schweifler, Shepherd, Spataro
NAYS: None
ABSENT: None
I, Gail Kundinger, hereby certify that I am the City Clerk of the City of Muskegon
and that the foregoing resolution is a true and correct copy of the
resolution adopted by the vote of a majority of members of said City
Commission present at a meeting of said Board on September 9th,
2003 at which a quorum wasyresent.
L a~~ ~-
Gail A, Kundinger, MMC
City Clerk
DEPARTMENT OF HEALTH & HUMAN SERVICES
FEDERAL SURPLUS
REAL PROPERTY PROGRAM
APPLICATION
1. Federal Installation
(A) Muskegon Land
13 80 Beach St.
Muskegon, Michigan
(B) GSA No.: 1-U-MI-0610
2. Identification of Applicant
(A) City of Muskegon
The city is a political subdivision of the State of Michigan
(B) The city is a Home Rule City under the State of Michigan. The Home
Rule documents and the City Charter section are attached that allow for
the city to own land.
(C) Ric Scott
Director of Leisure Services
933 Terrace St.
Muskegon,MI49443
(D) City of Muskegon
933 Terrace St.
Muskegon, MI 49443
231-724-6774
(E) The Beachwood/Bluffton Neighborhood Association will continue to help
maintain the property.
(F) NIA
3. Description of Real Property Requested
(A) The property is located in the Bluffton neighborhood of Muskegon and is
approximately I acre in size. A sanitary lift station is located on the
property, but the remainder of the property is vegetated with no structures
on it.
(B) (I) The property is zoned Open Space Recreation and the intended use
of the property will have no zoning restrictions. The intended use of the
property will conform to the Open Space recreation zoning designation.
(2) There will be no construction of buildings on the property.
(3) There will be no utilities required for the property. The water lines
for irrigation are already in place.
(4) There are no easements required for the property.
(C) There is no real personal property associated with this property. It is a
vacant piece of land except for the lift station
4. Proposed Program Brief for Property Requested
(A) The City of Muskegon would continue to maintain a sanitary lift station
that serves the Bluffton neighborhood, the Harbour Town Development
and the Muskegon Channel area. This is the only sanitary line servicing
these areas. Approximately 140 homes are services by this line. The city
will also maintain the remainder of the property as a park for
neighborhood use and beatification.
(B) The use is simply for a sanitary lift station that already exists and is
servicing the northwest end of the city. The cost to remove and replace
this line to another location would be approximately $200,000, assuming
another location could be found. This cost does not include real estate
costs. This would be cost prohibitive.
(C) The City of Muskegon has a sewer department that manages the sanitary
system throughout the city and has for decades. The City Engineer
oversees the design and construction of the sewer systems including the
lift stations throughout the city. The city has over 170 miles of sewers and
23 lift stations throughout the community. The engineering department
has 8 full-time employees and the sewer department has 14 full-time
employees. The existing lift station has been on this property since 1946
and was reconstructed in 1985.
(D) The need is that the city only recently discovered that the property was not
owned by the city.
(E) NIA
(F) The City of Muskegon owns a lot of real estate throughout the City. There
is a park across the street from this property. The city made the
determination over 50 years ago that the location for the lift station was
best suited for this property. The City Assessor's records showed that this
property was owned by the city. No Federal agency has ever claimed
ownership of the property until city staff did a title search on the property
and discovered the Federal ownership.
5. Physical Layout, Plans, and Cost Estimates
(A) The property is suitable for this use, as it has been used for this purpose
for many years.
(B) A project map is attached. There will be no additional improvements
other than some underground irrigation systems.
(C) The use of the property will be for the sanitary sewer lift station and
associated piping. The remainder of the property will be utilized for park
purposes. There is no cost to prepare the property for full utilization. It is
currently being fully utilized for these purposes.
I). There are no buildings on the property. There is only a sanitary lift
station.
2). There will be no new facilities built
3). The one-acre site will be used as a park except the area
immediately adjacent to the lift station. Further, it is the city's intent to
make this a charter park once the property is deeded to the city. A charter
park is park property that can't be sold or used for other than park
purposes without a vote of the residents of Muskegon.
6. Ability to Finance and Operate
(A) The City of Muskegon is currently funding the lift station through the
Sewer Fund of the City of Muskegon. The annual budget for sewers is
$3.5 million, which comes from revenues. The maintenance of the park
area will be done within the existing Parks budget of the City of
Muskegon. The Parks budget is over $1.2 million and over 700 acres of
land is currently being maintained through the Parks Budget. No
additional monies are needed to maintain and operate this property.
(B) No major renovations or construction is planned for this property.
7. Local Government Notification
We are the local government who manages the water, sewer, police, and fire
protection.
8. Applicant Certification
Signed Certification attached.
9. Governing Board Resolution
Governing Board resolution attached
10. Environmental Compliance
Environmental Questionnaire attached
Attachment A - Applicant Certification
(A) The applicant certifies that it will comply with section 606 of the Federal Property and Administrative
Services Act of 1949; the Fair Housing Act (42 U.S.C. § 3601-19) and implementing regulations; and as
applicable, Executive Order 11063 (Equal Opportunity in Housing) and implementing regulations; Title VI of
the Civil Rights Act of 1964 (42 U.S.C. § 2000d to d-4) (Nondiscrimination in Federally Assisted
Programs) and implementing regulations; Title IX of the Education Amendments of 1972 (20 U .S.C. § 168 l)
and implementing regulations; the prohibitions against discrimination on the basis of age under the Age
Discrimination Act of 1975 (42 U.S.C. § 6101-07) and implementing regulations; and the prohibitions against
otherwise qualified individuals with handicaps under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
§ 794) and implementing regulations and the Uniform Federal Accessibility Standards (UFAS), 41 CFR
Subpart 101-19.6, Appendix A.
The applicant will not discriminate on the basis of race, color, national origin, religion, sex, age, familial status,
disability or handicap in the use of the property, and will maintain the records required to demonstrate
compliance with Federal laws.
(B) The applicant agrees for itself, its successors and assigns, that it shall cause any conveyed improvements to
be insured against loss, damage, or destruction. If any such loss, damage, or destruction shall occur during
the period grantee holds title to said property subject to said conditions l through 5, said insurance and all
monies shall be held in trust by the grantee, its successors or assigns, and shall be promptly used by the
grantee for the purpose of repairing such improvements and restoring the same to their former condition and
use or for the purpose of replacing said improvements with equivalent or more suitable improvements or, if
not so used, the grantee shall cause to be paid over to the Treasurer of the United States that part of the
insurance proceeds that is attributable to the Government's residual interest in the property lost, damaged, or
destroyed, determined on the basis of the fair market value of the facilities at the time of the loss, damage, or
destruction.
(Cl The applicant covenants and agrees for itself, and its successors and assigns that in the event the grantor
exercises its option to revert all right, title, and interest in the property, to the granter, or the grantee
voluntarily returns title to the property in lieu of a reverter, then the grantee shall provide protection to and
maintenance of the property at all times until such time as the title reverts to and is accepted by the grantor.
Such protection and maintenance shall, at a minimum, conform to the standards prescribed by the General
Services Administration in its regulations FPMR 101-47.4913 (41 CFR 101) in effect as of the date of the deed,
a copy of which is attached (Attachment D) to the application.
(Title) _ _.;:Ma""-J'-"o'-"r_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
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Commission Meeting Date: September 9, 2003
Date: September 2, 2003
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development
RE: Sale of Non-Buildable Lot at 1024 Albert Avenue
SUMMARY OF REQUEST:
To approve the sale of a vacant non-buildable lot (Parcel #24-612-000-0538-00) at
1024 Albert Avenue to Lois Meisenheimer, 1032 Albert Avenue, Muskegon, Ml 49442
Since this is a marginal lot in size and not in keeping with most other lots in the
neighborhood, the Land Reutilizatioin Committee (LRC) recommends treating it as an
unbuildable lot. Approval of this sale will allow the adjacent property owner to expand
her current yard (see attached map). The original recommendation made by LRC was
to split the lot between the two adjacent property owners. However, one of the owners
withdrew their application due to concerns involving power lines intertwined in a large
oak tree located on the property.
FINANCIAL IMPACT:
The sale of this lot will allow the property to be placed 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 the resolution.
COMMITTEE RECOMMENDATION:
LRC recommended approval of the request at their August 26, 2003 meeting.
9/2/2003
CERTIFICATION
This resolution was adopted at a regular meeting of the City Commission, held on September 9, 2003.
The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of
Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
By
Gail A. Kundinger, MMC
Clerk
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QUIT-CLAIM DEED
KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal corporation, of
933 Terrace Street, Muskegon, Michigan 49440,
QUIT CLAIMS to LOIS MEISENHEIMER, of 1032 Albert Avenue, Muskegon, Michigan 49442,
the following described premises situated in the City of Muskegon, County of Muskegon, State of Michigan, to wit:
CITY OF MUSKEGON URBAN RENEWAL PLAT NO. 3, Lot 538
for the sum of: One Hundred ($ I 00) Dollars
PROVIDED, HOWEVER, If the Grantee or adjoining property owner loses the adjoining property due to
foreclosure or non-payment of taxes, the non-buildable lot shall revert to the Grantor. At that point in time when
any lien covers both parcels or there are not liens on either parcel, the property owner may request and the Grantor
shall agree to waive and terminate the reverter clause.
This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA 207.505(h)(i) and
MCLA 207.526 Sec. 6(h)(i).
Dated this o?r/,A day of .S,~o(,eJJ1b cc , 200.,L_.
7
Signed in the presence of:
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STA TE OF MICHIGAN
COUNTY OF MUSKEGON
The foregoing instrument was acknowledged before me this day of c, <' ~
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2003, by STEPHEN J. WARMINGTON and GAIL A. KUNDINGER, MMC, the Mayor a a Clerk, respectively, of
the CITY OF MUSKEGON, a municipal corporation, on behalf of the City.
PREPARED BY: John C. Schrier
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'irut2,/4,tfN-- , Notary Public
Parmenter O'Toole Muskegon County, Michigan
175 W. Apple Avenue/P.O. Box 786 My Comm. Expires: ;i'-.,l.:,--O &
Muskegon, Ml49443-0786
Telephone: 231/722-1621
WHEN RECORDED RETURN TO: Grantee SEND SUBSEQUENT TAX BILLS TO: Grantee
C:\DOCUME-1\anguilm\LOCALS-1\Temp\841449.00C
Commission Meeting Date: September 9, 2003
Date: September 2, 2003
To: Honorable Mayor and City Commissioners
From: Planning & Economic Development e_jb(.;
RE: Sale of Unbuildable Lot at 1446 Ducey Avenue
SUMMARY OF REQUEST:
To approve the sale of a vacant unbuildable lot (Parcel #24-611-000-0447-00) at 1446
Ducey Avenue to Habitat for Humanity, owners of 1438 Ducey Avenue, Muskegon, Ml
49442. Approval of this sale will allow Habitat for Humanity to join this non-buildable lot
with their current non-buildable lot and build a 1440 square foot, 3 bedroom home (see
attached map). This project is a partnership between Muskegon County Habitat for
Humanity and the Muskegon Area Technical Training Program. This project provides
instruction in construction skills for junior and senior students throughout Muskegon
County and the end result is a home for a low-income Habitat family. According to their
drawings, they plan to include a variable front roof line, shutters, a basement, and it will
also be 'stick built'.
FINANCIAL IMPACT:
The sale of this lot will allow the property to be placed 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 the resolution.
COMMITTEE RECOMMENDATION:
The Land Reutilization Committee (LRC) recommended approval of this request based
on the fact that the adjoining property already has a large lot at their August 26, 2003
meeting.
9/2/2003
CITY OF MUSKEGON
RESOLUTION #2003- 74 (a)
RESOLUTION APPROVING THE SALE OF A CITY-OWNED NON-BUILDABLE LOT
WHEREAS, the City of Muskegon has received $100 from Habitat for Humanity, owner of 1438
Ducey, Muskegon, MI 49442 for the purchase of a vacant, City-owned lot located adjacent to
their prope11y at 1446 Ducey (parcel #24-611-000-0447-00);
WHEREAS, this lot is considered non-buildable under the City's Zoning Ordinance;
WHEREAS, the sale would enable the City to place this property back on the tax rolls; and
would relieve the City of fmiher maintenance;
WHEREAS, the sale of this property would be in accordance with property disposition goals and
special recommendation of the Land Reutilization Committee (LRC);
NOW, THEREFORE BE IT RESOLVED, CITY OF MUSKEGON URBAN RENEWAL PLAT
NO 2 LOT 447 be sold to Habitat for Humanity for $100.
Resolution adopted this 9th day of September, 2003.
Ayes: Warmington, Gawron, Larson, Schweifler, Shepherd, Spataro
Nays: None
Absent: None
Gail A. Kundinger, MMC
City Clerk
CERTIFICATION
This resolution was adopted at a regular meeting of the City Commission, held on September 9, 2003.
The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of
Michigan, Act 267 of the Public Acts of 1976.
CITY OF MUSKEGON
By La_L .
Gail A. Kundinger, MMC ~
City Clerk
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QUIT-CLAIM DEED
KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal corporation, of
93 3 Terrace Street, Muskegon, Michigan 49440,
QUIT CLAIMS to MUSKEGON COUNTY HABITAT FOR HUMANITY, a Michigan Non-Profit Corporation,
of 1330 Fifth Street, Muskegon, Michigan 49441,
the following described premises situated in the City of Muskegon, County of Muskegon, State of Michigan, to wit:
CITY OF MUSKEGON URBAN RENEWAL PLAT NO. 2, Lot 447
for the sum of: One Hundred ($ I 00) Dollars
PROVIDED, HOWEVER, lfthe Grantee or adjoining property owner loses the adjoining property due to
foreclosure or non-payment of taxes, the non-buildable lot shall revert to the Grantor. At that point in time when
any lien covers both parcels or there are not liens on either parcel, the property owner may request and the Grantor
shall agree to waive and terminate the reverter clause.
This deed is exempt from real estate transfer tax pursuant to the provisions ofMCLA 207.505(h)(i) and
MCLA 207.526 Sec. 6(h)(i).
Dated this ~ day of ,5 ,~,,fem h ,,r , 200_,l_.
Signed in the presence of:
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STATE OF MICHIGAN
COUNTY OF MUSKEGON
The foregoing instrument was acknowledged before me this JV1/, day of Se·a I,: ,,1 ,1 ,,,,. ,
2003, by STEPHEN J. WARMINGTON and GAIL A. KUNDINGER, MMC, the Mayor and Clerk, respectively, of
the CITY OF MUSKEGON, a municipal corporation, on behalf of the City.
PREPARED BY: John C. Schrier
,Y/a,.idt:1 JJ , ~
L,i1tle; ..S, ~ff<";~, Notary Public
Parmenter O'Toole Muskegon County, Michigan
175 W. Apple Avenue/P.O. Box 786 My Comm. Expires: 1 · .:;J 5-- 0 C,
Muskegon, MI49443-0786
Telephone: 23 I /722-1621
WHEN RECORDED RETURN TO: Grantee SEND SUBSEQUENT TAX BILLS TO: Grantee
C:\DOCUME-1\anguilm\LOCALS~1\Temp\B41449.DOC
Commission Meeting Date: September 9, 2003
Date: September 2003
To: Honorable Mayor City Cominission
From: Conmnn1nity and Neighborhood Services
Department
RE: Purchase of 877 Emerald
SUMMARY OF REQUEST: To approve the purchase of tr1e property
located at 877 Emerald (City of Mus!
Effective Date
q, l..:2..-0~
Effective Date
PARAMOUNT COLLECTION SERVICES
~, L.L-D:>
Kirstin D Maio - Paramount ollection Service LLC Effective Date
Collection Manager
4
COLLECTIONS SERVICES
BID TABULATION
May 1, 2003
PARAMOUNT COLLECTION NATIONAL ASSOCIAftON OF
Contractor CBC:S, INC. PROFESSIONAL COLLECTION
SERVICES, LLC CREDIT MANAGEMENT
& CREDIT REFIORTING
SERVICES INC. TARGET
Address 307CENTER
4764 E. FULTON sr STE 101 20AO W. WISCONSIN AVE 3959 CLAY AVE SW
City/St MlJSKEGON, Ml GRAND RAPIDS, Ml MILWAUKE:E WI WYOMING Ml
UNIT UNIT
DESCRIPTION QUANTIT UNIT PRICE UNIT PRICE UNIT PRICE UNIT PRICE PRICE
1 PRE COLLECTION LETTERS 1 EACH $1.00 $2.00 $2.00 $2.50 $1.00
2 FULL COLLECTIONS PERCENTAGE 1 EACH 30% 28% 25% 30% 30%
NOT
ADDRESSE
3 LEGAL CASE PERCENTAGES 1 EACH 35% 40%
..-'
25% D 30%
COSTS+ COSTS+
ATTORNEY ATTORNEY ADDRESSE
4 ADDITIONAL LEGAL FEES 1 EACH NONE FEES FEES D NONE
25%+ NOT
NOT
THIRD ADDRESSE
5 OUT OF STATE REFERAL PERCENTAGES 1 EACH 40% ADDRESSED
PARTY D 0%
TRANS NOT
TRANS UNION - EXPERIAN-
UNION-NO ADDRESSE
6 CREDIT REPORTING 1 NO COST NO COST
EACH COST D NO COST
7 ON-LINE ACCESS 1 EACH YES NO YES YES YES
8 MONTHLY BILLING 1 EACH YES YES YES YES YES
Date: August 29, 2003
To: Honorable Mayor and City Commissioners
From: Finance Director and/or City Treasurer
RE: Approval of Parking Ticket Se1vices Contract/Agreement with MSB
Parking Data Ticket, Newport Beach, California
SUMMARY OF REQUEST:
In an effort to reduce costs, the city staff has explored outsourcing the administrative
functions of the parking ticket system. The staff has reviewed other proposals and had
determined that the best and most economical proposal was submitted by Municipal
Business Services Data Ticket (MSB).
FINANCIAL IMPACT:
Staff expects that the cost of the contract will be more than offset by:
I) Reduction in administrative staff time and costs associated with
processing parking tickets, notices, and etceteras.
2) Increase in collected revenue due to the knowledge and experience of
company in dealing with parking ticket debts as well as continual
updates of debtor information for enhanced payment enforcement.
3) Proposed increase in fines.
BUDGET ACTION REQUIRED: Not at this time.
STAFF RECOMMENDATION:
Approval of the parking ticket services agreement with MSB Parking Data Ticket.
COMMITTEE RECOMMENDATION:
The Committee of the Whole will meet on Monday, September 8"' to further discuss this
item.
Date: August 29, 2003
To: Honorable Mayor and City Commissioners
From: Revenue Collections Administrator
RE: Background information on the parking ticket proposal submitted by MSB
Parking Data Ticket
Reason for Search
The current parking ticket system has been in place since the 1980' s. The system is DOS
based and is not compatible with current technologies. Also of great concern, there is no
longer software support for the current system. The handheld unit is also of the same era,
while it is still functional, the maintenance agreement on the current handheld is costly
and will no longer be supported by the manufacturer.
Search and Criteria
City staff began research to replace the current hardware and software as well as reduce
operating costs involved with the processing and various other functions of the current
parking ticket system. City staff researched companies that were able to provide the
following:
1) Handheld ticket writing system with wireless capabilities
2) Provide parking ticket management software system at a minimal cost.
3) Provide software that is compatible with the City's current computer
technology.
4) Ability to process payments by mail, Internet, or payments made at our
location.
5) Ability to obtain license registration information
6) Provide collection services specializing in parking ticket debts
7) Provide superior customer service to the City staff and our citizens.
8) Provide these and other services/products at or under $2.00 per ticket.
Results
Only two companies within the United States provided these particular and unique
services within the guidelines the staff has set. It was unfortunate that there were no
companies within Michigan that provided these particular and unique services. Upon
reviewing the only two companies that had presented a proposal, the city staff has made
the decision to recommend MSB Parking Data Ticket located in Newport Beach,
California (MSB).
Costs of the Proposed Ticket System
MSB has proposed to provide a handheld ticket-writing device, thermo-imaging printer,
carrying case, and the ticket writing and management software for a cost of$3,373.00.
The cost of the custom designed, water-resistant ticket paper and envelopes is $3,273.00
for the first 18,000 tickets. This supply is expected to last for three years and six months
at a rate of 5,000 tickets written annually.
The City also saves money with this system, as the company will provide all software
support, maintenance, software updates, and provide the server which will house the
City's data at their location. City Information Services staff will not have to expend any
time or resources to maintain the proposed system, nor will the City have to expend any
funds to purchase any additional hardware. There is a monthly fee of $50 for
maintenance and user ID's and passwords to the system. Also, there is a cost of
$1,199.00 for on-site training and system transition support.
MBS will also provide payment processing, public inquires, updating license/registration
information, noticing, and collection services. MSB will provide these services at the
cost of$1.23 per ticket, 62 cents per additional notice following the first notice, and 32%
of collected revenue on delinquent accounts (collections).
Total first year cost is $10,245.00. As a comparison, it has been estimated that it would
cost $67,755 for the hardware and software to perform an in-house operation. This
estimate does not include personnel time needed to maintain the system or the additional
personnel needed to perform the administrative functions. By outsourcing to MSB, the
City will save well over $57,000 than providing for this service in-house.
Conclusion
The services and the cost of the proposed parking ticket system presented by MSB
Parking Data Ticket is best choice economically and administratively to continue the
parking enforcement system.
2003-74(g)
AGREEMENT FOR PROCESSING PARKING CITATIONS
AND REVENUE COLLECTION
This Agreement is made and entered into, in duplicate originals, between
Data Ticket, Inc. dba
Municipal Services Bureau, Parking
4600 Campus Drive, Suite 200
Newport Beach, California 92660
(hereinafter sometimes referred to as "COMPANY")
AND
THE CITY OF MUSKEGON, MICHIGAN
933 Terrace Street
Muskegon, Michigan 49440
(hereinafter sometimes referred to as "PUBLIC ENTITY"),
is made and entered into as of this 2- day of Sept•, 2003.
The parties intend by this Agreement to provide for the processing of fines, bail and
forfeiture thereof, in connection with the issuance of citations for illegal parking
pursuant to the laws of the State of Michigan.
ARTICI E I • CITATION PROCESSING
1.1 Referral and Reconciliation- COMPANY shall receive and process parking citations,
which COMPANY shall receive from PUBLIC ENTITY. COMPANY will provide a
reconciliation of the number of citations received from PUBLIC ENTITY.
1.? Determination of Processable Citations: COMPANY shall screen the parking
citations referred to it by PUBLIC ENTITY to determine if the citation is processable. If
the citation is determined by COMPANY to be unprocessable (e.g., essential
processing information is missing), COMPANY shall return the citation to PUBLIC
ENTITY within seven (7) days of receipt, by COMPANY'S office, for clarification.
COMPANY will be paid the contractual rate hereinafter provided, for citations properly
returned to the PUBLIC ENTITY as unprocessable.
C:\Documents and Settings\marjorie.fleming\Local
Settings\Temporary Internet Files\OLKlF\Parking Ticket Services
Contract 4.doc
Page 1 of 13
1.~ Collection and Deposit of Fqnds: A "direct deposit" system shall be employed for all
funds received in payment of citations. The PUBLIC ENTITY and the COMPANY shall
jointly own the account and deposits shall be made directly into the account by the
COMPANY for the collecting PUBLIC ENTITY. The COMPANY will provide all bank
reconciliation, cut checks and provide monthly management reports for the PUBLIC
ENTITY for services rendered.
1.4 Identification of Registered Vehicle Owners· COMPANY shall exert best efforts and
attempt to obtain the name and address of the registered vehicle owner from the
Secretary of State ("SOS") for each vehicle for which a parking citation has been
issued but payment for which has not been received within the required time period.
COMPANY shall follow all procedures specified by the SOS, and be consistent with the
Motor Vehicle Code when identifying registered vehicle owners.
1.fi Verification of Ownership· COMPANY will take reasonable measures to identify and
verify registered vehicle owners. Such measures will take into consideration factors
such as issuance of new license plates; address changes; license plate transfers to
other vehicles; name changes; and the validity of plates and registration during specific
time periods applicable to individual cases.
1.R Delinq1Jency Notices· In accordance with State law, COMPANY will generate and
mail (presorted, first-class postage), a delinquency notice to all identified registered
owners of vehicles who fail to pay their parking citation fines or to post bail in the
required manner. The mailed notice will include all information required by State Law,
including, but not limited to, the following:
a) The parking citation issuance date and number;
b) The consequences of nonpayment (i.e., a hold on the vehicle registration and
the imposition of penalties, towing; and
c) The amount of fines and fees due and payable.
d) Affidavit of Non-Ownership
1. 7 SOS Holds: If requested and available pursuant to laws of the State of Michigan,
the COMPANY will provide the system and procedures and will interface with the SOS
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to place a hold for unpaid parking fines and fees due against those vehicles in
accordance with the Motor Vehicle Code and any other applicable State and local laws.
The notification will be given within a reasonable period of time after issuance of all
delinquency notices. The period of time will not exceed the time limits provided by
state law.
1.8 Removal of Registration Holds: If applicable, COMPANY will provide the system
and procedures and will interface with the State Department of Motor Vehicles to
remove registration holds when a registered vehicle owner satisfies the entire amount
of parking citation fines, penalties, and fees due against the vehicle and establishes
such payment to the satisfaction of the PUBLIC ENTITY and the COMPANY.
1.9 Contested Citations- In the event a registered vehicle owner disputes the liability for
the outstanding parking citation, COMPANY will advise the registered vehicle owner of
his/her right to request an administrative review/hearing/court appearance. All
contested citations will be forwarded to the PUBLIC ENTITY for appropriate
adjudication within the prescribed time period so that the matter can be adjudicated
pursuant to Michigan law.
1.1 O Citations Disposed of by Hearing/Court: The COMPANY may be required, as a
result of court action, to reduce or cancel, on an individual basis, parking citations
which have been referred to it. COMPANY shall be paid the contractual rate
hereinafter provided for processing the citation regardless of the outcome of court
action. COMPANY will maintain records indicating any reduction or cancellations of
parking citations as a result of hearing/court action. Parking citations which are
dismissed as a result of hearing/court action, will have the dismissal processed by the
COMPANY promptly after receipt from the Hearing/Court.
1.11 Suspension of Processing· COMPANY will suspend processing on any citation
referred to it for processing upon written notice to do so by an authorized officer( s) of
the PUBLIC ENTITY. COMPANY will promptly return any citation or facsimile properly
requested by the PUBLIC ENTITY. COMPANY will maintain records indicating any
suspension of citation as a result of PUBLIC ENTITY'S request. COMPANY shall be
paid the contractual rate hereinafter provided for processing the citations suspended by
the PUBLIC ENTITY.
1.12 Payments by 11 S Mail: The postmark date will be the criteria to establish any
delinquent fees due.
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1.13 Parking Citation System Master File I Jpdate: COMPANY will regularly update the
parking citation master file for new citations, payments, reductions, cancellations,
dismissals and any other pertinent data.
ARTICI E II - PAYMENT PROCESSING
2.1 Disposition Processing: COMPANY will maintain all citation dispositions for a
minimum of one ( 1) year. Closed citations will remain on-line for at least one ( 1) year,
for research and statistical purposes.
2.2 Payments Processing· COMPANY shall process citation payments on a regular
basis. Payments shall be immediately posted in one (1) of three (3) following
categories:
a) "Regular Payments" are citations with the correct fine and/or penalty, paid on or
before the due date. (This includes payments properly complying with prior
Notices-of-Intent).
b) "Partial Payments" are citations paid after the due date or if the defendant has
paid less than the amount of the fine and/or penalty due. A Notice-of-Intent or a
printed form will advise defendant of incorrect late charges and/or fines.
c) "Court/Hearing Requests" are all requests for administrative/court hearings by
defendants. These requests are sorted so that fines submitted are immediately
posted, and if needed the original citations are retrieved.
2.3 Miscellanernis I etters Processing: COMPANY will receive and review all
miscellaneous correspondence. These are generally letters requesting refunds, voids,
or otherwise setting forth complaints. These letters will be researched by COMPANY
for proper follow-up either by PUBLIC ENTITY or by COMPANY.
2.4 Batching Proced1l[es: COMPANY shall maintain an effective method of internal
control procedures. Such procedures shall involve reconciliation of all payments
received using generally accepted accounting principles. After proper reconciliation,
deposit slips shall be prepared for and deposits made at the appropriate bank,
including an itemized listing of all batch numbers included in the deposit. The batch of
citations payment documentation shall then be stored in a file room, for a period of one
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(1) year.
2.5 Cash Payments: COMPANY shall maintain an effective method of handling cash
payments. All cash received through the mail, shall be logged in a cash journal.
Thereafter, effective internal control procedures shall be implemented to reconcile such
payments, using generally accepted accounting principles.
2.8 Deposits· All deposits shall be made daily, subject to regular banking hours.
Deposits shall be itemized and detailed information will be captured regarding
submitted funds. Deposit slips shall be prepared in triplicate, allowing one (1) copy for
the PUBLIC ENTITY and one (1) copy for the COMPANY. All deposits shall be directly
deposited into a joint account held in the name of the PUBLIC ENTITY and the
COMPANY. Funds will be transferred via ACH on a monthly basis to PUBLIC
ENTITY'S bank account in Michigan. All bank charges will be paid by the PUBLIC
ENTITY.
2.7 Reve • 11e Report: A monthly revenue report will list all revenues received during the
preceding month.
ARIICI E Ill - GENERAi
3.1 Pt 1hlic Inquiries- The COMPANY will respond to reasonable inquiry by telephone or
letter of a nonjudicial nature. Inquiries of a judicial nature will be referred to the
PUBLIC ENTITY for determination.
3.7 COMPANY I imitations: COMPANY will not take legal action or threaten legal action
in any specific case without PUBLIC ENTITY'S prior approval.
3.3 Ilse of Approved Forms· PUBLIC ENTITY shall have the right to reasonable
approval of all forms, delinquency notices, and correspondence sent by the
COMPANY. These must conform to State and local law.
3.4 Books and Records· COMPANY will maintain adequate books or records for
parking citations issued within the PUBLIC ENTITY'S jurisdiction and referred to
COMPANY for processing. Such books or records, and related computer processing
data, shall be available for reasonable inspection and audit by PUBLIC ENTITY at the
COMPANY'S location at reasonable times upon forty-eight hours' prior notice to
COMPANY.
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3.5 Ownership: COMPANY and PUBLIC ENTITY shall maintain co-ownership of the
raw data. Raw Data is the data provided by PUBLIC ENTITY to COMPANY to engage
in the agreed upon contractual service(s). The raw data will only be used for the
completion of the agreed upon services. Company is not allowed to sell, use or
distribute the raw data to a third party without prior consent from the PUBLIC ENTITY.
3.6 PUBLIC ENTITY will have right to use, copy, duplicate, retain, store, and publish for
public information, including but not limited to, all reports, report information, statistical
data, financial data, citation data, and all other tangible end product data; which shall
be know collectively as the "Materials".
a) All documents, records and tapes supplied by PUBLIC ENTITY to COMPANY
in performance of this contract are agreed to be and shall remain the sole property
of PUBLIC ENTITY. COMPANY agrees to return same promptly to PUBLIC ENTITY
no later than forty-five (45) days following notice to the COMPANY. The PUBLIC
ENTITY shall make arrangements with COMPANY for the transmission of such data
to the PUBLIC ENTITY upon payment to COMPANY of the cost of copy and delivery
of such tape from COMPANY'S computer facilities to PUBLIC ENTITY'S designated
point of delivery, plus any open invoices.
3. 7 COMPANY will retain full ownership rights to source codes, software, computer
programs, including but not limited to computer tapes, discs or files furnished or
prepared by the COMPANY or its subcontractor the sole property of COMPANY, all
computer software and systems, related automated and manual procedures,
instructions, computer programs, and data storage media containing same, and written
procedures performed hereunder (collectively known as the "System") are and shall
remain exclusively the sole property of COMPANY, and the PUBLIC ENTITY shall
acquire no right or title to said Systems.
3.8 Confidentiality· In order to enable COMPANY to carry out its work hereunder, to
some extent it will have to impart to the PUBLIC ENTITY'S employees information
contained in the Materials and Systems (collectively the "CONFIDENTIAL DATA"). The
PUBLIC ENTITY agrees that information contained in the data that was marked in
writing as "CONFIDENTIAL", "PROPRIETARY" or similarly, so as to give notice of its
confidential nature, when submitted to the PUBLIC ENTITY by COMPANY shall be
retained by PUBLIC ENTITY in the strictest confidence and shall not be used or
disclosed in any form except in accordance with paragraph 3.9 hereinbelow. The
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PUBLIC AGENCY recognizes that irreparable harm could be occasioned to COMPANY
by disclosure of CONFIDENTIAL DATA, which is related to its business, and that
COMPANY may accordingly seek to protect such CONFIDENTIAL DATA by enjoining
disclosure.
3. 9 Consent For Qisclosme- No report, information, data, files, or tapes furnished or
prepared by COMPANY or its subcontractors, successors, officers, employees,
servants, or agents shall be made available to any individual or organization without
the prior written approval of PUBLIC ENTITY other than individuals or organization who
are deemed reasonable and necessary to properly effectuate the terms and conditions
of this agreement, except that such information may be disclosed by PUBLIC ENTITY
without prior written consent in response to valid court order or Freedom of Information
Act request. This Non-Disclosure obligation shall survive the Termination of this
Agreement.
3.1 O COMPANY Files: COMPANY shall maintain master files on parking citations
referred to it for processing under this Agreement. Such files will contain records of
payments, dispositions, and any other pertinent information required to provide a
reasonable audit trai I.
3.11 Storage for Pl IBI IC ENTITY· COMPANY agrees to store original citations for
three (3) years, at which time they will be returned to PUBLIC ENTITY.
a) COMPANY will have such information available on system or magnetic tape or
disk for PUBLIC ENTITY'S parking citations for a reasonable time period to
permit PUBLIC ENTITY retrieval of such information.
b) PUBLIC ENTITY relieves COMPANY of all liability costs associated with data
released by PUBLIC ENTITY to any other person or entity using such data.
c) Subsequent to the termination of the contract, COMPANY will return hard copy
to the PUBLIC ENTITY. If requested, a diskette or CD of its processed data will
be provided to PUBLIC ENTITY for a fee of actual costs of personnel time,
materials, and shipping. A magnetic tape can also be provided for a fee of
seventy-five Dollars ($75.00) per magnetic tape and includes personnel time.
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ARTICI E IV - CONTRACT PRICE
4.1 Basis for Eee Strnct1J[ff The fee structure hereinafter provided shall be based on
the combined parking citation volume.
4.? Basis of Fee Computation: The fee due and payable to COMPANY will be
computed on a per parking citation basis and will be based on the issuance date of the
citation. Each parking citation assigned to COMPANY for processing shall be utilized
in computing the base for the total fee.
FOR All FEES, PLEASE REFER TO ATTACHMENT "A" - FEE SCHEDULE.
4.::l Postal Rate Increase- The COMPANY will maintain auditable records to document
the COMPANY'S actual postage costs associated with the mailing of delinquency
notices for unpaid citations and for other mailings related to the processing of
correspondence. If there is a postal increase, that increase will be invoiced effective
on the date that the postal rate increase takes place.
ARTICI EV - REPORTS
5.1 Dail\r Reports· COMPANY shall make available to PUBLIC ENTITY via Internet
access daily reports for statistical data, payment(s), citation activity, and all other
tangible daily activity reports deemed necessary by PUBLIC ENTITY on each business
day.
5.? Periodic Reports· COMPANY will submit reports to PUBLIC ENTITY no later than
the 25th of each month following the activity. The reports will document activities
relating to performance under this Agreement. Among the reports which COMPANY
may/will generate are the following:
a) Report of Revenue Collected for Period
b) Report for Parking Citations Issued for Period
c) A balanced summary report for issuing PUBLIC ENTITY, providing the status of
all parking citations at the beginning of the period, current period activity, and at
the end of the period.
d) A report for issuing Agency identifying registered vehicle owners with multiple
outstanding parking citations.
e) A report for issuing Agency identifying the parking citations issued, location,
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violation by each officer.
5.3 Aornial Reports: Annually, COMPANY shall comply with existing laws of the State
of Michigan.
ARTICI E \II - TERM OE CONTRACT AND ADDITIONAi SERVICES
6.1 Term and Renewals: This Agreement shall be for an initial period of three (3) years
commencing as of the last date of signature.
Annual reviews will occur during the months of January through March of each
year after the initial three (3) year period has been completed.
Unless either party makes notice of termination in writing to the other, no less than
ninety (90) days prior to the end of the scheduled term, this Agreement shall
automatically renew for subsequent one ( 1) year periods from the date of
execution of said agreement.
In conjunction with this automatic extension of the terms of this Agreement,
COMPANY may give notice of reasonable price adjustments for its processing
services. The PUBLIC ENTITY has ninety days to respond in writing to the
purposed increase. Unless PUBLIC ENTITY gives notice in writing of its rejection
of these price adjustments, the term shall be extended with these price
adjustments as stated.
If the PUBLIC ENTITY gives notice of its rejection of these price adjustments,
unless there is a further written Agreement between the parties, the term of the
Agreement shall not be extended and the Agreement shall terminate.
6.2 Cancellation· Upon a material breach and written notice thereof, or upon ninety
(90) days written notice to COMPANY for any reason in PUBLIC ENTITY's sole
discretion, the PUBLIC ENTITY may cancel or terminate this Agreement. The
COMPANY shall have thirty (30) days to cure any material breach or defect set forth in
the written termination notice provided by PUBLIC ENTITY.
6.3 Fxcf11sivitir: PUBLIC ENTITY agrees to utilize only the services of COMPANY
during the term of this Agreement for the processing of the citations referred to above.
PUBLIC ENTITY agrees during the term of the Agreement to not directly or indirectly
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assist a competitor of COMPANY in the performance of the services provided by
COMPANY under this Agreement.
ARTICI E VII - Cl AIMS AND ACTIONS
7 .1 Pl !Bl IC ENTITY Caaperatio •- In the event any claim or action is brought against
COMPANY relating to COMPANY'S performance or services rendered under this
Agreement, COMPANY shall notify the PUBLIC ENTITY, in writing, within ten (10)
days, of said claim or action.
7.2 Hold Harmless- COMPANY AND PUBLIC ENTITY agree to the following hold
harmless clause.
a) COMPANY agrees to indemnify, defend, and hold harmless the PUBLIC ENTITY
and its officers and employees against all claims, demands, damages, costs,
and liabilities arising out of, or in connection with, the performance by
COMPANY or PUBLIC ENTITY or any of their officers, employees, or agents
under this AGREEMENT, excepting only loss, injury, or damage caused solely
by the negligent acts or omissions of PUBLIC ENTITY or any of its officers or
employees.
ARTICI E vm - SI IRCQNTRACTQRS AND ASSIGNMENTS
8.1 Subcontracting: COMPANY is authorized to engage subcontractor(s), as permitted
by law at COMPANY'S own expense, subcontracts shall be deemed agents of
COMPANY.
8.2 Assignments: This contract may not be assigned without the prior written consent
of the PUBLIC ENTITY. It is understood and acknowledged by the parties that the
COMPANY is uniquely qualified to perform the services in this agreement.
ARTICI E IX - INDEPENDENT COMPANY
9.1 COMPANY'S Relationship· COMPANY'S relationship to PUBLIC ENTITY in the
performance of this Agreement is that of an independent COMPANY. Personnel
performing services under this Agreement shall at all times be under COMPANY'S
exclusive direction and control and shall be employees of COMPANY and not
employees of the PUBLIC ENTITY. COMPANY shall pay all wages and salaries and
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shall be responsible for all reports and obligations respecting them relating to social
security, income tax withholding, unemployment compensation, worker's compensation,
and similar matters. Neither COMPANY nor any officer, agent, or employee of
COMPANY shall obtain any right to retirement benefits or other benefits which accrue
to employees of PUBLIC ENTITY, and COMPANY hereby expressly waives any claim it
might have to such rights.
ARIICI E X - INSI IRANCE
10.1 Insurance Provisions- COMPANY shall provide and maintain at its own expense
during the term of this Agreement, the following policy or policies of insurance covering
its operations hereunder. Such insurance shall be provided by insurer(s) satisfactory
to the PUBLIC ENTITY and certificates of such insurance shall be delivered to the
PUBLIC ENTITY on or before the effective date of this Agreement. Such certificates
shall specifically identify this Agreement and shall not be canceled, reduced in
coverage or limits or non-renewed except after thirty (30) days written notice has been
given to the PUBLIC ENTITY.
a) Comprehensive general liability insurance covering bodily and personal injury
and property damage. Limits shall be in an amount of not less than $1,000,000
per occurrence. Such insurance policies shall name the PUBLIC ENTITY, its
officers, agents and employees, individually and collectively, as additionally
insured.
b) Such coverage for additional insured shall apply as primary insurance and any
other insurance or self-insured retention maintained by the PUBLIC ENTITY its
officers, agents and employees shall be excess only and not contributing with
insurance provided under said policy.
c) Comprehensive automobile liability owned, non-owned and hired vehicles with
not less than $1,000,000 combined single limit, per occurrence for property
damage and for bodily injury or death of persons.
d) Such insurance shall include the same additional-insured and cancellation
notice provisions as specified above and may be combined with the
comprehensive general liability coverage required above.
e) Throughout the period of agreement, the COMPANY, at its sole cost, shall
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maintain in full force and effect a policy of workers' compensation insurance
covering all of its employees as required by the labor code.
ARTICI E XI - ENTIRE AGREEMENT
11. 1 Integrated Agreement· This contract is intended by the parties as a final
expression of their Agreement and also as a complete and exclusive statement of the
terms thereof, any prior oral or written Agreement regarding the same subject matter
notwithstanding. This Agreement may not be modified or terminated orally, and no
modification or any claim of waiver of any of the provision shall be effective unless in
writing and signed by both parties.
11.2 Applicable I aw- This Agreement shall be construed in accordance with the Laws
of the State of Michigan.
11.3 Notices to Parties: Any notice required under this Agreement to be given to either
party may be given by depositing in the United States mail, postage prepaid, first-class,
addressed to the following:
AS TO PUBLIC ENTITY:
CITY OF MUSKEGON
ATTN: TREASURER'S OFFICE
933 TERRACE STREET
MUSKEGON, MICHIGAN 49440
AS TO COMPANY:
MUNICIPAL SERVICES BUREAU, PARK!NG
ATTN: MARJORIE A. FLEMING
4600 CAMPUS DRIVE, SUITE 200
NEWPORT BEACH, CALIFORNIA 92660
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IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the date and year first
above written.
1-1.1-02)
Effective Date