City Commission Packet 08-23-2011

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  CITY OF MUSKEGON
   CITY COMMISSION MEETING
                   AUGUST 23, 2011
 CITY COMMISSION CHAMBERS @ 5:30 P.M.
                            AGENDA

CALL TO ORDER:
PRAYER:
PLEDGE OF ALLEGIANCE:
ROLL CALL:
HONORS AND AWARDS:
INTRODUCTIONS/PRESENTATION:
CONSENT AGENDA:
  A. Approval of Minutes. CITY CLERK
  B. WEMET Vehicle Cost. CITY MANAGER
  C. Bond Authorizing Resolution. FINANCE
PUBLIC HEARINGS:
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
NEW BUSINESS:
  A. Revised LC Walker Management Agreement. FINANCE
  B. Pension Benefits for Public Safety Director. FINANCE
  C. East Muskegon Little League and No More Sidelines – Request to Waive
     Equipment Rental Fees and Labor Charges for City Picnic Table Use.
     PLANNING & ECONOMIC DEVELOPMENT
  D. Michigan Irish Music Festival – Request to Waive Equipment Rental
     Fees. PLANNING & ECONOMIC DEVELOPMENT
  E. Church Without Shoes Event at Margaret Drake Elliott Park – Request to
     Waive the Special Event Application Fee and the Picnic Shelter
     Reservation Fee. PLANNING & ECONOMIC DEVELOPMENT
       F. Request to Fly Breast Cancer Ribbon Flags. CITY CLERK
       G. Designation of Voting Delegates for the Michigan Municipal League
          Annual Business Meeting. CITY CLERK
   ANY OTHER BUSINESS:
   PUBLIC PARTICIPATION:
   Reminder: Individuals who would like to address the City Commission shall do the following:
   Fill out a request to speak form attached to the agenda or located in the back of the room.
    Submit the form to the City Clerk.
   Be recognized by the Chair.
   Step forward to the microphone.
   State name and address.
   Limit of 3 minutes to address the Commission.
   (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)

   CLOSED SESSION:
   ADJOURNMENT:
ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who
want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann
Marie Becker, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or TDD:
(231) 724-4172.
Date:     August 23, 2011
To:       Honorable Mayor and City Commissioners
From:     Ann Marie Becker, City Clerk
RE:       Approval of Minutes




SUMMARY OF REQUEST: To approve minutes of the August 8th
Commission Worksession Meeting and the August 9th City Commission
Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
                                       City of Muskegon
                                 City Commission Worksession
                                        August 8, 2011
                                  City Commission Chambers
                                            5:30 PM

                                          MINUTES

2011-54
Present: Commissioners Warmington, Gawron, Carter, Spataro, Shepherd, and Wisneski.
Absent: Commissioner Wierengo.

Great Lakes Die Cast Financing Subordination.
Staff has recommended to continue the lien and subordinate the loan to refinance with Wells
Fargo, and authorize the Mayor and Clerk to execute necessary documents. This is acceptable to
the company.

This item will be brought to the City Commission on August 9, 2011 for their consideration.

L.C. Walker Arena Parking Lot.
The request is to authorize staff to enter into an agreement with Michigan Paving & Materials to
mill and resurface the northerly parking lot of L.C. Walker (between Shoreline Drive & L.C.) at
a cost is $20,190 for all labor, material and equipment necessary to perform the aforementioned
work. Michigan Paving & Materials was the lowest responsible bidder out of three contractors
solicited to bid on this project.

This item will be brought to the City Commission on August 9, 2011 for their consideration.

Chamber of Commerce Shared Services Study.
Nineteen suggested shared services were given in the Shared Services Study. Elected officials
met two weeks ago to discuss it. It is hoped that the seven communities set a plan of putting the
points of interest in the order of importance.

Adjournment.
Motion by Commissioner Carter, seconded by Commissioner Shepherd to adjourn at 6:15
p.m.

                                                                           MOTION PASSES



                                                            ________________________
                                                             Ann Marie Becker, MMC
                                                                  City Clerk
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                       AUGUST 9, 2011
    CITY COMMISSION CHAMBERS @ 5:30 P.M.
                                MINUTES

   The Regular Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, August 9,
2011.
   Mayor Warmington opened the meeting with a prayer from Pastor Tim Cross
from the Living Word Church of Muskegon after which the Commission and
public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
   Present: Mayor Stephen Warmington, Vice Mayor Stephen Gawron,
Commissioners Clara Shepherd, Lawrence Spataro, Sue Wierengo, Steve
Wisneski, and Chris Carter, City Manager Bryon Mazade, City Attorney John
Schrier, and City Clerk Ann Marie Becker.
2011-55 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the City Commission Meeting
that was held on Tuesday, July 26, 2011.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      B. Brownfield Consulting Services – Envirologic Technologies,        Inc.
         Proposal. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: The City’s Brownfield consultant, Anne Couture, is taking
a position in Lansing. The City has been working with Envirologic Technologies,
Inc. on current Brownfield site assessment projects. Since Envirologic has
extensive experience with Brownfield Redevelopment Authorities and positive
interaction with both the MDEQ and the USEPA, they were requested to submit a
proposal to continue with the consulting services that Ms. Couture has been
providing up to this point.
FINANCIAL IMPACT:    The majority of services provided by Envirologic will be
financed through existing (and potentially future) grant funds, as well as through
Brownfield Plan fees. There will be some funds paid through the City’s general
fund, which is the case currently with Ms. Couture.
BUDGET ACTION REQUIRED: None, the 2011-12 Planning budget includes funds
for this type of consulting service.
STAFF RECOMMENDATION:          To approve the “Proposal for Completion of
Brownfield Consulting Services” from Envirologic Technologies, Inc. and authorize
the Mayor to sign the “Proposal”.
      C. Certification of MERS Representatives. FINANCE
SUMMARY OF REQUEST: The MERS plan document provides that “the governing
body for each municipality shall certify the names of two delegates to the
Annual Meeting. One delegate shall be a member who is an officer of the
municipality appointed by the governing body of the municipality. The other
delegate shall be a member who is not an officer of the municipality, elected
by the member officer/employees of the municipality.”
The City’s bargaining units have agreed to a rotating system (based on date of
joining MERS) to select one official employee representative. This year the
official employee representative attending the MERS conference will be Jeff
Balon from the DPW517 union.
FINANCIAL IMPACT: Registration for the MERS conference in Traverse City is $185
per person. Additionally, mileage and lodging costs will be incurred.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Certification of Tim Paul and Jeff Balon to be the
City’s officer and employee delegates at the MERS annual meeting in Traverse
City September 27 – 29.
      D. Request to Apply for the Certified Local Government Status from the
         Michigan Historic Center. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Becoming a Certified Local Government will give the
City access to more historic rehabilitation grants and free educational
workshops. The current historic preservation ordinance was recently revised to
meet the criteria required for certification by the Michigan Historic Center. There
is no application fee for this certification.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:      Approval to apply for the Certified Local
Government from the Michigan Historic Center and for the Mayor to sign the
cover letter.
      E. Consideration of Bids for Parking Lot at L. C. Walker Arena.
         ENGINEERING
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with
Michigan Paving & Materials to mill and resurface the northerly parking lot of L.
C. Walker Arena (between Shoreline Drive & L. C. Walker Arena) at a cost of
$20,190 for all labor, material and equipment necessary to perform the
aforementioned work. Michigan Paving & Materials was the lowest responsible
bidder out of the three contractors solicited to bid on this project.
The bids are without prevailing wages and bonds but they are required to
provide general liability insurance naming the City as an additional insured.
FINANCIAL IMPACT: The construction cost of $20,190 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: This project, if approved, would have to be added
to the 2011/2012 budget in a future quarterly budget re-forecast.
STAFF RECOMMENDATION: Authorize staff to enter into an agreement with
Michigan Paving & Materials to mill and resurface the parking lot.
      F. Engineering Services Agreement to Upgrade Traffic Signal at Getty and
         Evanston. ENGINEERING
SUMMARY OF REQUEST: Authorize staff to enter into an engineering services
agreement with Progressive A/E to perform the necessary design and
preparation of specifications and construction documents to upgrade the
traffic signal at Getty and Evanston for a not to exceed fee of $8,815.
FINANCIAL IMPACT: Cost of surveying, design, specifications and construction
engineering, $8,815. The construction will be mostly covered by a CMAQ grant.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION:        Authorize staff to enter into an agreement with
Progressive.
      G. Burgess-Norton. CITY MANAGER
SUMMARY OF REQUEST: To approve a Memorandum of Understanding with
Burgess-Norton to provide access to City property for environmental
investigation purposes and to reimburse the City for irrigation system costs.
FINANCIAL IMPACT: Reimbursement of costs associated with irrigation systems
and property access.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Memorandum of Understanding.
      H. Appointments to Various Boards and Committees. CITY CLERK
SUMMARY OF REQUEST: To appoint Reverend Phillips representing Ward II, and
Rosalind Ford as a citizen at large to the Community Development Block Grant-
Citizen’s District Council; Tim Taylor as a member with property interest to the
Downtown Development Authority; Catherine Young to the Income Tax Board
of Review as a resident; and Deborah Crockett, Rosalind Ford, and Catherine
Young to the Local Officer’s Compensation Commission as citizens.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the appointments.
COMMITTEE RECOMMENDATION:         The Community Relations             Committee
recommended the appointments at their August 8th meeting.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the consent agenda as read.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Wierengo, Wisneski, Carter,
           and Gawron
            Nays: None
MOTION PASSES
2011-56 UNFINISHED BUSINESS:
      A. SECOND READING:        Encroachment Ordinance Amendment.            CITY
         CLERK
SUMMARY OF REQUEST: This request is to amend Chapter 74, Article V of the
Code of Ordinances by adding sections 74-200 through 74-214.
Under the proposed ordinance all encroachments will expire August 31, 2011,
and will require renewal on or before September 1st of each year.
There are currently 130 encroachments on file. For 2011, all applicants will be
given a 30-day extension until September 30, 2011, given the short notice.
FINANCIAL IMPACT: New proposed fees are $25 if an annual inspection is not
required and a $50 fee if an annual inspection is required. A late fee of $25 will
be imposed every 30 days.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the ordinance amendment.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the encroachment ordinance amendment.
ROLL VOTE: Ayes: Spataro, Warmington, Wierengo, Wisneski, Carter, Gawron,
           and Shepherd
            Nays: None
MOTION PASSES
2011-57 NEW BUSINESS:
      A. Approval of Sale of City-Owned Home at 1891 Wood. COMMUNITY &
         NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the resolution and instruct the Community
and Neighborhood Services department to complete the sales transaction
between Ms. Crystal Cervantes for the totally rehabilitated home at 1891 Wood
Street, which is part of the City’s Neighborhood Stabilization Program through
the Michigan State Housing Development Authority Office of Community
Development. Ms. Cervantes purchase price is $50,000. The beautiful three-
bedroom, two-bath home was previously vacant.
FINANCIAL IMPACT: The proceeds from the sale will be used to continue the
rehabilitation of vacant houses through NSP to sustain our current investments to
stabilize and revitalize neighborhoods.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and direct the CNS staff to
complete the sale.
Motion by Vice Mayor Gawron, second by Commissioner Spataro to approve
the sale of the City-owned home at 1891 Wood to Ms. Crystal Cervantes.
ROLL VOTE: Ayes: Warmington, Wierengo, Wisneski, Carter, Gawron, Shepherd,
           and Spataro
            Nays: None
MOTION PASSES
      B. Great Lakes Die Cast Financing Subordination. CITY MANAGER
SUMMARY OF REQUEST: Great Lakes Die Cast has a loan with the City and has
asked that the City give up its lien on the company’s receivables so it can re-
finance with Wells Fargo.
FINANCIAL IMPACT: This impacts our security.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To continue the lien and subordinate the loan to the
refinancing with Wells Fargo, and authorize the Mayor and Clerk to execute
necessary documents. This is acceptable to the company.
Motion by Commissioner Spataro, second by Vice Mayor Gawron to approve
the Great Lakes Die Cast financing subordination as presented.
ROLL VOTE: Ayes: Wierengo, Wisneski, Carter, Gawron, Shepherd, Spataro, and
           Warmington
            Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments received.
ADJOURNMENT: The City Commission Meeting adjourned at 5:50 p.m.


                                       Respectfully submitted,




                                       Ann Marie Becker, MMC
                                       City Clerk
                          AGENDA ITEM NO. ___________________

                   CITY COMMISSION MEETING ____________________



TO:         Honorable Mayor and City Commissioners

FROM:       Bryon L. Mazade, City Manager

DATE:       August 11, 2011

RE:         WEMET Vehicle Cost



SUMMARY OF REQUEST:
To approve an increase in WEMET vehicle cost from $6,190 to $7,500 annually, per vehicle.
The city uses four vehicles.



FINANCIAL IMPACT:
Increase of $5,240 annually.




BUDGET ACTION REQUIRED:
None at this time.




STAFF RECOMMENDATION:
To approve the request.




COMMITTEE RECOMMENDATION:
None.




pb\AGENDA\WEMET VEHICLE COST 081111
Date: August 23, 2011
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Bond Authorizing Resolution


SUMMARY OF REQUEST:                 As previously discussed, the City is borrowing $2.0 million from Fifth-
Third Bank to serve as local matching funds for various current and future street projects for which the City
has received grant funding.

Proper public notice of the bond issuance has been given and the attached bond authorizing resolution is the
last action required by the City Commission to complete this transaction.


FINANCIAL IMPACT: The loan will be for ten years at an interest rate of 2.98%


BUDGET ACTION REQUIRED:                   The projected interest payment for 2011-12 is included in the FY
2012 budget.



STAFF RECOMMENDATION: Approval of the bond authorizing resolution.


COMMITTEE RECOMMENDATION: None.
                                       CITY OF MUSKEGON
                                     (Muskegon County, Michigan)

                                          Resolution No. _____

                             RESOLUTION TO AUTHORIZE ISSUANCE OF
                               2011 CAPITAL IMPROVEMENT BONDS

         Minutes of a regular meeting of the City Commission of the City of Muskegon, Muskegon County,

Michigan, held in the City Hall, 933 Terrace Street, Muskegon, Michigan 49443-0536, on August 23, 2011,

at _____p. m., local time.

PRESENT:           Members



ABSENT:            Members

         The following resolution was offered by Commission Member _____________ and supported by

Commission Member _____________:

      WHEREAS, pursuant to Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”) the City of
Muskegon (the “City”) has the authority to issue bonds to pay the costs of any capital improvement items;
and

         WHEREAS, the City desires to purchase, acquire and construct certain capital improvements,
including street reconstruction including, but not limited to, base reconstruction, milling, placement of
bituminus pavement, curb and gutter on City streets including, but not limited to, Laketon, Sherman, Getty,
and Terrace, the restoration of streets, rights-of-way and easements affected by the improvements, and
related facilities as well as all work necessary and incidental to these improvements (the “Improvements”);
and

        WHEREAS, the Improvements will enable the City to provide more efficient and better quality
public services to City residents; and

        WHEREAS, the cost of making the Improvements is estimated to be approximately Six Million
Dollars ($6,000,000); and

         WHEREAS, to finance the cost of making a portion of the Improvements, the City Commission
deems it in the best interest of the City to borrow the sum of not to exceed $2,000,000 and to issue its 2011
Capital Improvement Bonds therefor pursuant to the provisions of Act 34.




7195707.1 37404/146152
         NOW, THEREFORE, BE IT HEREBY RESOLVED as follows:

         1.        NECESSITY. It is necessary for the public health, safety and welfare of the City to make

the Improvements and issue bonds of the City, pursuant to Act 34 to finance the acquisition and construction

of the Improvements.

         2.        ESTIMATED COST - PERIOD OF USEFULNESS. The total cost of the Improvements,

including the payment of engineer’s fees, legal and financial expenses and other expenses incident to the

financing of the Improvements, including the portion of the project to be funded with grants, is estimated to

be approximately Six Million Dollars ($6,000,000) and is hereby approved and confirmed, and the

estimated period of usefulness of the Improvements is determined to be in excess of ten (10) years.

         3.        ISSUANCE OF BONDS. To defray a portion of the cost of the Improvements, including

legal, engineering, financial and other expenses, the City shall issue its bonds known as 2011 Capital

Improvement Bonds (the “Bonds”) in the aggregate principal sum of not to exceed Two Million Dollars

($2,000,000). The balance of the cost of the Improvements, if any, shall be paid by grants or funds

appropriated by the City.

         4.        BOND TERMS. The Bonds shall be issued in fully registered form as to both principal

and interest in minimum denominations of $100,000 or any multiple of $5,000 above that amount. The

Bonds shall be dated the date of delivery or such other date determined by the Authorized Officer, shall bear

interest at the rate of 2.98% and shall be issued as one term bond with mandatory redemptions on each

September 1, in such amounts determined by the Authorized Officer at the time of closing. Interest on the

bonds shall be paid semiannually on the first (1st) day of March and September of each year, commencing

March 1, 2012.

         5.        PAYMENT OF PRINCIPAL AND INTEREST. Both principal of and interest on the

Bonds shall be payable in lawful money of the United States of America to the person appearing on the


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7195707.1 37404/146152
Bond registration books as the registered owner thereof. Payment of principal on the Bonds shall be made

at the principal office of the Paying Agent (defined below), upon surrender of the Bonds. Payment of

interest on the Bonds shall be paid to the registered owner at the address as it appears on the registration

books as of the determination date. Initially, the determination date shall be the date as of the fifteenth (15th)

day of the month prior to the payment date for each interest payment; however, the determination date may

be changed by the City to conform to market practice.

         6.        PLEDGE OF FULL FAITH AND CREDIT, GENERAL OBLIGATION. The City

hereby pledges its limited tax, full faith and credit, general obligation for the prompt payment of the

principal of and interest on the Bonds as and when due. In the event there are insufficient moneys for the

payment of principal of and interest on the Bonds, the City shall levy a tax on all taxable property in the City

for the prompt payment of principal and interest on the Bonds, which tax shall be limited as to rate and

amount by applicable charter, constitutional and statutory limitations on the taxing power of the City.

         7.        PRIOR REDEMPTION.

                   (a)    Mandatory Redemption. Principal of the Bonds shall be subject to mandatory

redemption, in part, at par plus accrued interest, on the redemption dates corresponding to the principal

amounts set forth above. When term bonds are purchased by the City and delivered to the Paying Agent for

cancellation or are redeemed in a manner other than by mandatory redemption, the principal amount of the

term bonds affected shall be reduced by the principal amount of the Bonds so redeemed in the order

determined by the City.

                   (b)    Optional Redemption. The Bonds shall be subject to optional redemption prior to

maturity, as determined by the Authorized Officer at the time of closing

         8.        PAYING AGENT AND REGISTRATION. From time to time the City shall designate

and appoint a Paying Agent, which may also act as transfer agent and bond registrar. The initial Paying

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7195707.1 37404/146152
Agent shall be the City Treasurer. In the event of a change in the Paying Agent, notice shall be given in

writing, by certified mail, to each Registered Owner not less than sixty (60) days prior to the next interest

payment date. The Paying Agent shall keep the official books which record the registered owners of the

Bonds (the “Registered Owners”). Bonds may be transferred only by submitting the same to the Paying

Agent, together with a satisfactory instrument of transfer signed by the Registered Owner or his legal

representative duly authorized in writing, after which a new Bond or Bonds shall be issued by the Paying

Agent to the transferee (new registered owner) in minimum denominations of $100,000 or any integral

multiple of $5,000 above that amount. No transfer of Bonds shall be valid unless and until recorded on the

bond registration books in accordance with the foregoing. The person in whose name any bond is registered

may for all purposes, notwithstanding any notice to the contrary, be deemed and treated by the City and the

Paying Agent as the absolute owner thereof, and any payment of principal and interest on any Bond to the

Registered Owner thereof shall constitute a valid discharge of the City’s liability upon such Bond to the

extent of such payment. No Bond shall be transferred less than fifteen (15) days prior to an interest payment

date nor after the Bond has been called for redemption.

         9.        BOND FORM. The Bonds shall be substantially in the form attached hereto as Exhibit A,

and incorporated herein, with such changes as are recommended by the City’s Bond Counsel and approved

by the officers of the City signing the Bonds.

         10.       EXECUTION OF BONDS. The Mayor or the Mayor Pro Tem, and the Clerk or the

Deputy Clerk of the City, are hereby authorized and directed to sign the Bonds, either manually or by

facsimile signature, on behalf of the City. Upon execution, the Bonds shall be delivered to the purchaser

thereof upon receipt of the purchase price in accordance with the accepted bid therefor, plus the accrued

interest, if any, to the date of delivery.




                                                     -4-

7195707.1 37404/146152
           11.     BONDS MUTILATED, LOST OR DESTROYED. If any Bond shall become mutilated,

the City, at the expense of the holder of the Bond (the “Bondholder”), shall execute, and the Paying Agent

shall authenticate and deliver, a new Bond of like tenor in exchange and substitution for the mutilated Bond,

upon surrender to the Paying Agent of the mutilated Bond. If any Bond issued under this Resolution shall

be lost, destroyed or stolen, evidence of the loss, destruction or theft may be submitted to the Paying Agent

and, if this evidence is satisfactory to both the City and the Paying Agent and indemnity satisfactory to the

Paying Agent shall be given, the City, at the expense of the Bondholder, shall execute, and the Paying Agent

shall thereupon authenticate and deliver, a new Bond of like tenor, which shall bear the statement required

by Act 354, Public Acts of Michigan, 1972, as amended, or any applicable law hereafter enacted, in lieu of

and in substitution for the Bond so lost, destroyed or stolen. If any such Bond shall have matured or shall be

about to mature, instead of issuing a substitute Bond, the Paying Agent may pay the same without surrender

thereof.

           12.     BOND PAYMENT FUND. For payment of principal of and interest on the Bonds, there

shall be established and maintained a fund for the Bonds designated the “2011 CAPITAL

IMPROVEMENT BONDS BOND PAYMENT FUND” (the “Bond Payment Fund”). The accrued

interest, if any, and capitalized interest, if any, received at the time of delivery of the Bonds shall be placed

into the Bond Payment Fund. The City shall budget annually a sufficient amount to pay the annual

principal of and interest on the Bonds and deposit such amount in the Bond Payment Fund as needed to

make payments of principal and interest as they become due. The obligation of the City to pay the principal

of and interest on the Bonds will be a first budget obligation. Moneys in the Bond Payment Fund shall be

expended solely for payment of principal and interest on the Bonds which first come due. Any monies

remaining in the Bond Payment Fund after the annual payments of principal of and interest on the Bonds

shall be transferred to the General Fund and shall no longer be pledged hereunder.

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7195707.1 37404/146152
         13.       CONSTRUCTION FUND. Prior to delivery and sale of the Bonds, there shall be

established a fund designated the “2011 CAPITAL IMPROVEMENT BONDS CONSTRUCTION

FUND” (the “Construction Fund”). After deducting the sums which are required to be deposited in the

Bond Payment Fund, the balance of the proceeds of the Bonds shall be deposited into the Construction

Fund. The moneys on deposit in the Construction Fund from time to time shall be used solely for the

purpose for which the Bonds were issued. Any unexpended balance shall be used for such purposes as

allowed by law. Any monies remaining in the Construction Fund after payment of all such costs shall be

transferred to the Bond Payment Fund. After completion of the Improvements and disposition of any

remaining bond proceeds, pursuant to the provisions of this Section, the Construction Fund shall be closed.

         14.       INVESTMENT OF FUNDS. Moneys in the funds and accounts established herein may

be invested by the City as allowed by law, subject to the limitations imposed by arbitrage regulations and

Section 148 of the Internal Revenue Code of 1986, as amended, and the applicable regulations thereunder

(collectively the “Code”).

         15.       DEPOSITORY AND FUNDS ON HAND. Monies in the several funds and accounts

maintained pursuant to this Bond Resolution may be kept in one or more accounts at financial institutions

designated by resolution of the City, and if kept in one account, the monies shall be allocated on the books

and records of the City in the manner and at the times provided in this Resolution.

         16.       COVENANTS. The City covenants and agrees with the successive Bondholders that so

long as any of the Bonds remain outstanding and unpaid as to either principal or interest:

                   (a)    That it will cause the principal of and interest on the Bonds to be paid promptly

when due, but solely from the funds pledged by this Resolution.

                   (b)    That it will make no use of the proceeds of the Bonds, or any other funds which

may be deemed to be proceeds of the Bonds pursuant to Section 103(c) of the Code which, if the use had

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7195707.1 37404/146152
been reasonably expected on the date of issuance of the Bonds, would have caused the Bonds to be

“arbitrage bonds” within the meaning of that Section, and will comply with all requirements of the Code

throughout the term of the Bonds.

         17.       ADDITIONAL BONDS. In accordance with the provisions of Act 34, the City reserves

the right to issue additional bonds, which shall be of equal standing and priority with the Bonds.

         18.       MICHIGAN TAXATION.             The Bonds provided for herein are authorized by the

Constitution and Statutes of the state of Michigan, and in particular by Act 34, and are exempt from all

taxation by the State of Michigan or by any taxing authority within the state, except inheritance, estate and

gift taxes, and except taxes on gains realized from the sale, payment or other disposition thereof.

         19.       CONTRACT WITH BONDHOLDERS.                     The provisions of this Resolution shall

constitute a contract between the City and the Bondholders from time to time, and after the issuance of any

of such Bonds, no change, variation or alteration of the provisions of this Resolution may be made which

would lessen the security for the Bonds. The provisions of this Resolution shall be enforceable by

appropriate proceedings taken by such Bondholders, either at law or in equity.

         20.       SALE OF BONDS. The Bonds shall be sold at a negotiated sale to Fifth Third Bank, an

Ohio banking corporation, or one of its affiliated entities (the “Bank”). The City determines that a

negotiated sale is in the best interests of the City since the offer of the Bank to purchase the Bonds provides

a low interest rate while also saving on the costs of issuance for the Bonds.

         21.       AUTHORIZED OFFICER. Notwithstanding any other provision of this Resolution, the

City Manager and the Finance Director, or either one of them acting alone (the “Authorized Officer”), is

authorized within the limitations of this Resolution to determine the title of the Bonds, interest rate (not to

exceed 2.98%), amount of discount, amount of maturities, principal amount (not to exceed the principal

amount stated in this Resolution), amount of good faith deposit, if any, denominations, dates of issuance,

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7195707.1 37404/146152
dates of maturities (with the final maturity no later than 2025), interest payment dates, optional and

mandatory redemption rights, and term bond options prior to the closing on the issuance of the Bonds.

         The Authorized Officer is hereby authorized for and on behalf of the City, without further City

Commission approval, to execute a bond purchase agreement for the Bonds, and to do all acts and take all

necessary steps required to effectuate the sale, issuance and delivery of the Bonds.

         Approval by the City of the matters delegated in this section or any other sections may be evidenced

by execution or approval of such documents by the Authorized Officer. The Authorized Officer, together

with the Mayor, the Clerk and the Treasurer or any one or more of them, are authorized to execute any

documents or certificates necessary to complete the transaction, including, but not limited to, any

applications, including applications to the Michigan Department of Treasury, any certificates, receipts,

orders, agreements, instruments, and any certificates relating to federal or state securities laws, rules or

regulations.

         22.       INTERNAL REVENUE CODE. The City has consulted with its attorney and understands

that the Code contains certain requirements on (i) the expenditure of proceeds from the sale of the Bonds,

(ii) the investment of the proceeds from the issuance of the Bonds and (iii) the rebate of interest earned on

the investment of the proceeds of the Bonds under certain circumstances. The City hereby covenants to

comply with such requirements.

         23.       QUALIFIED TAX-EXEMPT OBLIGATION. The City reasonably anticipates that the

amount of qualified tax-exempt obligations which will be issued by the City and all subordinate entities

during the calendar year 2011 shall not exceed $10,000,000. The City hereby designates the Bonds as

qualified tax-exempt obligations for purposes of Section 265(b)(3)(B) of the Code. The City hereby

certifies that the Bonds are not private activity bonds as defined in Section 141 of the Code.




                                                      -8-

7195707.1 37404/146152
         24.       DEFEASANCE. In the event cash or direct obligations of the United States or obligations

the principal of and interest on which are guaranteed by the United States, or a combination thereof, the

principal of and interest on which, without reinvestment, come due at times and in amounts sufficient to pay

at maturity or irrevocable call for earlier optional or mandatory redemption, the principal of, premium, if

any, and interest on the bonds, shall be deposited in trust, this Resolution shall be defeased and the owners of

the bonds shall have no further rights under this Resolution except to receive payment of the principal of,

premium, if any, and interest on the bonds from the cash or securities deposited in trust and the interest and

gains thereon and to transfer and exchange bonds as provided herein.

         25.       OFFICIAL STATEMENT. Because this Bond is being sold by negotiated sale to a

sophisticated financial institution, the City will not prepare an Official Statement relating to the Bonds and

will not enter into a continuing disclosure undertaking.

         26.       BOND RESOLUTION SUBJECT TO MICHIGAN LAW. The provisions of this

Resolution are subject to the laws of the State of Michigan.

         27.       SECTION HEADINGS. The section headings in this Resolution are furnished for

convenience of reference only and shall not be considered to be a part of this Resolution.

         28.       SEVERABILITY. If any section, paragraph, clause or provision of this Resolution shall be

held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other

provisions of this Resolution.

         29.       CONFLICT.      Except as provided above, all resolutions or parts thereof, insofar as the

same may be in conflict herewith, are hereby repealed; provided, that the foregoing shall not operate to

repeal any provision thereof, the repeal of which would impair the obligation on the Bonds.




                                                      -9-

7195707.1 37404/146152
         30.       EFFECTIVE DATE OF RESOLUTION. This Resolution is determined by the City

Commission to be immediately necessary for the preservation of the peace, health and safety of the City and

shall be in full force and effect from and after its passage.

YEAS:              Commission Members




NAYS:              Commission Members

ABSENT:            Commission Members

RESOLUTION DECLARED ADOPTED.



                                                                Ann Becker, Clerk
                                                                City of Muskegon



STATE OF MICHIGAN                  )
                                   ) SS
COUNTY OF MUSKEGON                 )


        I, Ann Becker, the duly qualified and acting Clerk of the City of Muskegon, Muskegon County,
Michigan (the “City”), do hereby certify that the foregoing is a true and complete copy of a resolution
adopted by the City Commission at a meeting held on August 23, 2011, the original of which is on file in
my office. Public notice of said meeting was given pursuant to and in compliance with Act 267, Public
Acts of Michigan, 1976, as amended.

         IN WITNESS WHEREOF, I have hereunto affixed my signature this 23rd day of August, 2011.




                                                                Ann Becker, Clerk
                                                                City of Muskegon




                                                       - 10 -

7195707.1 37404/146152
                                                   EXHIBIT A

                                                     No. ___

                                         UNITED STATES OF AMERICA
                                            STATE OF MICHIGAN
                                           COUNTY OF MUSKEGON
                                             CITY OF MUSKEGON

                                    2011 CAPITAL IMPROVEMENT BONDS
                                         (Limited Tax General Obligation)




                         Interest Rate           Date of Maturity        Date of Original Issue
                            2.98%              ____________, ____         September ___, 2011



Registered Owner:             Fifth Third Bank, an Ohio banking corporation
Principal Amount:             Two Million Dollars ($2,000,000)



         The City of Muskegon, Muskegon County, Michigan (the “City”), acknowledges itself indebted
and, for value received, hereby promises to pay to the Registered Owner specified above, or registered
assigns, the Principal Amount specified above, in lawful money of the United States of America, on the
Date of Maturity specified above, with interest thereon from the Date of Original Issue specified above or
such later date to which interest has been paid, until paid, at the Interest Rate per annum specified above,
first payable on March 1, 2011, and semiannually thereafter on the first day of March and September of
each year.

         This Bond is the total authorized issue of bonds issued in accordance with the provisions of Act 34,
Public Acts of Michigan, 2001, as amended (“Act 34”) and a resolution adopted by the City Commission
on August 23, 2011, for the purpose of paying a portion of the cost of purchasing, acquiring and
constructing certain capital improvements, including street reconstruction including, but not limited to, base
reconstruction, milling, placement of bituminus pavement, curb and gutter on City streets including, but not
limited to, Laketon, Sherman, Getty, and Terrace, the restoration of streets, rights-of-way and easements
affected by the improvements, and related facilities as well as all work necessary and incidental to these
improvements.




                                                        A-1

7195707.1 37404/146152
        The City has pledged the limited tax, full faith, credit and resources of the City for the prompt
payment of the principal of and interest on the Bonds, in which event the City may levy a tax on all taxable
property in the City for the payment of principal and interest on the Bonds, which tax shall be limited as to
rate and amount by applicable charter, constitutional and statutory limitations on the taxing power of the
City. The City reserves the right to issue additional bonds in accordance with the provisions of Act 34
which shall be of equal standing and priority with the Bonds.

         The City Treasurer shall act as the initial paying agent, bond registrar and transfer agent (the
“Paying Agent”). Principal of this Bond is payable at the principal office of the Paying Agent. The City
may hereafter designate an alternate Paying Agent by notice mailed to the Registered Owner not less than
sixty (60) days prior to the next interest payment date. Interest on this Bond is payable to the Registered
Owner of record as of the fifteenth (15th) day of the month preceding the payment date as shown on the
registration books of the City maintained by the Paying Agent, by check or draft mailed to the Registered
Owner at the registered address.

       Portions of the Bond are subject to mandatory redemption prior to maturity in part, by lot, on
__________ 1 and will be redeemed at the par value thereof plus accrued interest to the redemption date on
__________ 1 of each of the following years in the amounts as follows:

                               Redemption Date             Principal Amount

                                    10/01/12
                                    10/01/13
                                    10/01/14
                                    10/01/15
                                    10/01/16
                                    10/01/17
                                    10/01/18
                                    10/01/19
                                    10/01/20
                                    10/01/21

         Term Bonds purchased by the City and delivered to the Paying Agent for cancellation or which are
redeemed in a manner other than by mandatory redemption, shall reduce the principal amount of the Bonds
subject to mandatory redemption by the amount of the Bonds so redeemed, in the order determined by the
City.

        Bonds are subject to redemption prior to maturity as a whole or in part, at the option of the City, in
such order as the City shall determine, on any interest payment dates. Bonds called for redemption shall be
redeemed at the par value thereof and accrued interest to the date of redemption, without a premium.




                                                     A-2

7195707.1 37404/146152
         Notice of the call of any Bonds for redemption shall be given by first class mail not less than thirty
(30) days prior to the date fixed for redemption, to the Registered Owner at the registered address. Bonds
called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand
with the Paying Agent to redeem such Bonds. Bonds shall be called for redemption in multiples of $5,000,
and Bonds of denominations of more than $5,000 shall be treated as representing the number of bonds
obtained by dividing the denomination of the Bond by $5,000, and such Bonds may be redeemed in part.
The notice of redemption of Bonds redeemed in part shall state that upon surrender of the Bond to be
redeemed, a new Bond or Bonds in aggregate principal amount equal to the unredeemed portion of the
Bond surrendered shall be issued to the Registered Owner thereof.

         This Bond shall be registered in the name of the Registered Owner on the registration books kept by
the Paying Agent and such registration noted hereon, and thereafter no transfer shall be valid unless made
upon the registration books and likewise noted hereon. This Bond is exchangeable at the request of the
Registered Owner hereof, in person or by his attorney duly authorized in writing, at the office of the Paying
Agent, but only in the manner, subject to the limitations and at his sole expense, for other bonds of an equal
aggregate amount, upon surrender of this Bond to the Paying Agent. Upon such transfer, a new registered
bond or bonds of the same series and the same maturity of authorized denomination will be issued to the
transferee in exchange therefor.

         The City has designated the Bonds of this series as “qualified tax exempt obligations” for purposes
of Section 265(b)(3)(B) of the Internal Revenue Code of 1986, as amended.

         It is hereby certified and recited that all acts, conditions and things required by law, precedent to and
in the issuance of this Bond, exist and have been done and performed in regular and due time and form as
required by law and that the total indebtedness of the City including this Bond, does not exceed any charter,
constitutional or statutory limitation.

        IN WITNESS WHEREOF, the City of Muskegon, Muskegon County, Michigan, by its City
Commission, has caused this Bond to be signed, by the manual or facsimile signatures of its Mayor and the
City Clerk, all as of the ____ day of __________, 2011.




                                                    Stephen Warmington, Mayor



                                                    Ann Becker, Clerk




                                                       A-3

7195707.1 37404/146152
                         CERTIFICATE OF REGISTRATION AND AUTHENTICATION

         This Bond is the City of Muskegon’s $2,000,000 2011 Capital Improvement Bond and has been
registered in the name of the Registered Owner designated on the face thereof in the bond register
maintained for the City.


                                                                         Derrick Smith, Treasurer
                                                                         As Paying Agent/Bond Registrar/Transfer Agent

Authentication Date:          __________________


                                                         ASSIGNMENT

          For value received, the undersigned hereby sells, assigns and transfers unto



           (please print or type social security number or taxpayer identification number and name and address of transferee)

the within bond and all rights thereunder, and does hereby irrevocably constitute and appoint
____________________________ attorney to transfer the within bond on the books kept for registration
thereof, with full power of substitution in the premises.

Dated:                                                                   Signed:

In the presence of:

Notice:     The signature to this assignment must correspond with the name as it appears upon the face of the
            within bond in every particular, without alteration or enlargement or any change whatever. When
            assignment is made by a guardian, trustee, executor or administrator, an officer of a corporation,
            or anyone in a representative capacity, proof of his authority to act must accompany the bond.

            Signature(s) must be guaranteed by an eligible guarantor institution participating in a Securities
            Transfer Association recognized signature guaranty program.



Signature Guaranteed:




                                                                  A-4

7195707.1 37404/146152
Date: August 23, 2011
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Revised LC Walker Management Agreement


SUMMARY OF REQUEST: The contract for management of the LC Walker Arena was drafted in
2006 and subsequently assigned over to new management companies on two separate occasions.
However, the contract was not significantly revised on either assignment. The new arena manager has
requested the management contract be revised to:

       Remove certain outdated provisions (e.g. club room financing)
       Remove requirement for the City to find replacement parking if the Western Avenue parking lot was
       ever to be used for a purpose other than parking
       Change some outdated terminology (e.g. “professional” hockey)
       Change item-dollar threshold for use of the arena maintenance fund from $5,000 to $3,000
       Change the contract date to coincide with the City’s fiscal year
       Set a new contract termination date of 9/1/16

Staff has reviewed the proposed contract changes and recommends approval of the revised management
contract.


FINANCIAL IMPACT:              There is no change to the $235,000 annual management fee included in the
current contract. However, the contract sets this amount as the annual fee for each year of the contract. The
prior contract allowed the City to unilaterally reduce the fee if it was deemed by the City that the fee was
excessive in light of the arena’s financial performance. Staff concurs that this provision is no longer needed.

Staff has also obtained an opinion from bond counsel (attached) to assure the contract changes do not
impair the tax-exempt status of the County’s Quality of Life bonds issued, in part, to finance arena
renovations.

BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION:                     Approval of the proposed amended LC Walker management
contract with Logger Hockey, LLC



COMMITTEE RECOMMENDATION: None.
Date: August 23, 2011
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: Pension Benefits for Public Safety Director


SUMMARY OF REQUEST: It has been traditional for the Public Safety Director (or, in the past,
Police Chief) to receive pension benefits comparable to those received by Police Command Officers.

Currently, discrepancies exist in the pension multiplier and the normal retirement age:

             Benefit                          Police Command                     Public Safety Director

Pension Multiplier                                  3.00%                                 2.75%

Normal Retirement Age/Service                       55/10                                 60/10

Early Retirement Age/Service                        53/25                                 53/25




FINANCIAL IMPACT:             MERS charges a one-time cost of $7,030 to value and administer this benefit.
A valuation of the benefit change will be performed to determine the actuarial cost of the change.



BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION:                      Authorize the City Manager to execute documents to increase the
level of the Public Safety Director’s pension benefit to the same level as the Police Command Officers
effective for retirements after August 1, 2011, pending acceptable results of the actuarial valuation.



COMMITTEE RECOMMENDATION: None.
                  CITY COMMISSION MEETING DATE
                                August 23, 2011

Date:        August 11, 2011

To:          Honorable Mayor and City Commissioners

From:        Cathy Brubaker-Clarke, Director of Community &
             Economic Development

Re:          East Muskegon Little League & No More Sidelines –
             Request to waive equipment rental fees & labor charges for
             City picnic table use


SUMMARY OF REQUEST: East Muskegon Little League is having their annual end of
summer party at Sheldon Park for No More Sidelines on 8/31/11. No More Sidelines is
a non-profit organization providing children and young adults with special needs, an
opportunity to play sports year round and to participate in community events and
outings. They will be using approximately 15 City picnic tables, which are already at the
park now. They are requesting that the City waive the $10 per table rental fee, as well
as the labor charges for transporting the tables back to DPW after the event.


FINANCIAL IMPACT: Equipment rental fees are $10 per table. City labor charges are
$60 per hour.


BUDGET ACTION REQUIRED: None



STAFF RECOMMENDATION:




COMMITTEE RECOMMENDATION:                      N/A
                  CITY COMMISSION MEETING DATE
                                August 23, 2011

Date:        August 8, 2011

To:          Honorable Mayor and City Commissioners

From:        Cathy Brubaker-Clarke, Director of Community &
             Economic Development

Re:          Michigan Irish Music Festival – request to waive equipment
             rental fees (picnic tables)


SUMMARY OF REQUEST: Chris Zahrt has filed a special event application for the
annual Michigan Irish Music Festival to be held at Heritage Landing September 16-18,
2011. She is requesting that the City Commission waive the picnic table rental fees for
this event, providing that Irish Festival personnel transport the tables to and from the
festival site.


FINANCIAL IMPACT: Request that equipment rental fees be waived, which is $10 per
table. The festival estimates that they’ll use approximately 40 tables.


BUDGET ACTION REQUIRED: None


STAFF RECOMMENDATION:



COMMITTEE RECOMMENDATION:                      N/A
                   CITY COMMISSION MEETING DATE
                                 August 23, 2011

Date:         August 17, 2011

To:           Honorable Mayor and City Commissioners

From:         Cathy Brubaker-Clarke, Director of Community &
              Economic Development

Re:          Church Without Shoes event at Margaret Drake Elliott Park
             ~ Request to waive the special event application fee & the
             picnic shelter reservation fee


SUMMARY OF REQUEST: Bob Kuhn, applicant for the Church Without Shoes event
being held 9/4/11, is requesting that the City waive the picnic shelter reservation fee and
the special event application fee for this event.
Church Without Shoes has been held for years, but is normally tied in with the
Breakwater Festival (formerly Shoreline Spectacular). That organization notified us
recently that they are not having their festival this year and they have withdrawn their
special event request. Because Church Without Shoes is a public event on City
property, a special event application is required per City policy. No City services are
required for the event.


FINANCIAL IMPACT:           $125 picnic shelter reservation cost; $50 special event
application fee


BUDGET ACTION REQUIRED: None



STAFF RECOMMENDATION:




COMMITTEE RECOMMENDATION:                        N/A
Date:       August 23, 2011
To:         Honorable Mayor and City Commissioners
From:       Ann Marie Becker, City Clerk
RE:         Request to Fly Breast Cancer Ribbon Flags




SUMMARY OF REQUEST: Tempting Tables is requesting permission
to fly breast cancer ribbon flags the week of October 16th at the following
locations:
      Hackley Park
      City Hall
      Shoreline Drive
      Central Fire Station
      Hartshorn Marina
      Root Park


FINANCIAL IMPACT: None


BUDGET ACTION REQUIRED: None


STAFF RECOMMENDATION: None
Date:       August 23, 2011
To:         Honorable Mayor and City Commissioners
From:       Ann Marie Becker, City Clerk
RE:         Designation of Voting Delegates for the Michigan
            Municipal League Annual Business Meeting


SUMMARY OF REQUEST: To designate by action of the Commission,
one of our officials who will be in attendance at the Convention as an
official representative to cast the vote of the municipality at the annual
meeting; and, if possible, to designate one other official to serve as
alternate.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval.

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