City Commission Packet 11-12-2013

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      CITY OF MUSKEGON
       CITY COMMISSION MEETING
                     NOVEMBER 12, 2013
     CITY COMMISSION CHAMBERS @ 5:30 P.M.
                                AGENDA

   CALL TO ORDER:
   PRAYER:
   PLEDGE OF ALLEGIANCE:
   ROLL CALL:
   HONORS AND AWARDS:
      A. 2013 Employee Service Awards.
      B. Recognition of JAAR Partnerships Participation in the Second Annual
         Police “GOOD BUDDY BUCKS” Program.
      C. Muskegon Police Department Citizen Certificate of Appreciation for
         Diane Kooi.
      D. Recognition of Fall 2013 Citizen’s Police Academy Graduates.
   CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
      B. Sludge Hauling and Disposal. PUBLIC WORKS
      C. Moratorium on Fees for 2014 Vacant Buildings.           PLANNING &
         ECONOMIC DEVELOPMENT
      D. Emergency Pump Replacement at Beach Street Lift Station.       PUBLIC
         WORKS
      E. Acceptance of an Easement from ADAC Automotive, Inc. at the
         Southwest Corner of Keating and Port City Blvd. ENGINEERING
      F. Winter Closure of Beach Street between Lakeshore Drive and
         Beachwood Park from the 3rd Friday in December to the 3rd Friday in
         March. PUBLIC WORKS
      G. Approval of the Fair Housing Agreement with Muskegon County.
         COMMUNITY & NEIGHBORHOOD SERVICES
      H. Extending the Master Plan. PLANNING & ECONOMIC DEVELOPMENT
       I. Resolution Authorizing the SAW Grant Agreement. ENGINEERING
   PUBLIC HEARINGS:
       A. Request for an Industrial Facilities Exemption Certificate – ADAC
          Plastics, 2050 Port City Blvd. PLANNING & ECONOMIC DEVELOPMENT
       B. Request for an Industrial Facilities Exemption Certificate – ADAC
          Plastics, 2653 Olthoff Dr. PLANNING & ECONOMIC DEVELOPMENT
       C. Request for an Exemption of New Personal Property (PA 328) – ADAC
          Plastics, 2050 Port City Blvd. PLANNING & ECONOMIC DEVELOPMENT
       D. Request for an Exemption of New Personal Property (PA 328) – ADAC
          Plastics, 2653 Olthoff Dr. PLANNING & ECONOMIC DEVELOPMENT
   NEW BUSINESS:
       A. Transmittal of 6/30/13 Comprehensive Annual Financial Report.
          FINANCE
       B. Supplemental MERS Contribution. FINANCE
       C. First Quarter 2013-14 Budget Reforecast. FINANCE
       D. Rental Program and Environmental Code Compliance Professional
          Services Agreement. PLANNING & ECONOMIC DEVELOPMENT
       E. Next Michigan/West Michigan Economic Partnership – Interlocal
          Agreement for the West Michigan Economic Development Partnership.
          PLANNING & ECONOMIC DEVELOPMENT
       F. Concurrence with the Housing Board of Appeals Notice and Order to
          Demolish the Following: PUBLIC SAFETY
           224 W. Grand
           850 Turner
           860 Emerson (Garage Only)
           1324 Pine
           1459 Terrace
           868 W. Hackley
           345 W. Grand
           709 E. Apple (Remove Concrete from Second Garage Only)
   ANY OTHER BUSINESS:
   PUBLIC PARTICIPATION:
   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 Cummings, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or
TTY/TDD dial 7-1-1 to request a representative to dial (231) 724-6705.
Date:    November 12, 2013
To:      Honorable Mayor and City Commissioners
From:    Ann Marie Cummings, City Clerk
RE:      Approval of Minutes




SUMMARY OF REQUEST: To approve minutes of the October 22nd
City Commission Meeting.


FINANCIAL IMPACT: None.


BUDGET ACTION REQUIRED: None.


STAFF RECOMMENDATION: Approval of the minutes.
     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                     OCTOBER 22, 2013
    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, October 22, 2013.
Mayor Gawron opened the meeting with a prayer from George Monroe from
the Evanston Avenue Baptist 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 Gawron, Vice Mayor Lawrence Spataro,
Commissioners Eric Hood, Willie German, Sue Wierengo, Byron Turnquist, and Lea
Markowski, City Manager Franklin Peterson, City Attorney John Schrier, and City
Clerk Ann Marie Cummings.
2013-85 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the October 7th Commission
Worksession Meeting, and the October 8th City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      B. Consideration of Bids for B-251 Musketawa Trail Connector; Industrial
         Park to Port City Blvd. ENGINEERING
SUMMARY OF REQUEST: Award the construction of a bike path contract along
the south side of Keating Avenue between Industrial Park and Port City Blvd. to
TJM Services out of Allegan for $75,560.86 as they were the lowest responsible
bidder.
FINANCIAL IMPACT: The construction cost of $78,560.86 plus engineering cost
which is estimated at an additional 15%.
BUDGET ACTION REQUIRED: Incorporate this project into the 2013/2014 budget
when adopting the first quarterly update.


                                                                             1
STAFF RECOMMENDATION: Award the contract to TJM for $75,560.86 and
incorporate into the 2013/2014 budget.
      C. Dredging Contract for Cottage Grove and Hartshorn Launch Ramps.
         PUBLIC WORKS
SUMMARY OF REQUEST: Award the dredging of the launch ramps at Cottage
Grove & Hartshorn contract to Great Lakes for $192,714.26 and authorize the
Mayor and Clerk to sign the contract. Great Lakes, out of Muskegon, was the
only bidder on this project.
It is further requested that the award, if granted, be conditional upon approval
of the bids by MDNR.
FINANCIAL IMPACT:    Contract amount of $192,714.26 plus the previously
approved amount for the engineer.
BUDGET ACTION REQUIRED: Adjust the budgeted amount to $210,000 instead of
the amount shown of $175,000 in the upcoming budget reforecast.
STAFF RECOMMENDATION: Award the contract to Great Lakes.
      D. Remove Board of Review Member. CITY CLERK
SUMMARY OF REQUEST: To remove Georgia Strube from the Board of Review
because she moved out of the City of Muskegon.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Motion by Vice Mayor Spataro, second by Commissioner Wierengo to approve
the Consent Agenda as read.
ROLL VOTE: Ayes: Spataro, German, Wierengo, Turnquist, Markowski, Gawron,
           and Hood
            Nays: None
MOTION PASSES
2013-86 PUBLIC HEARINGS:
      A. Request for an Industrial Facilities Exemption Certificate – AFI Hole Drill.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, AFI
Hole Drill, 1920 Port City Blvd., has requested the issuance of an Industrial
Facilities Tax Exemption Certificate. The total capital investment will be $476,000
in personal property and will create two jobs. This qualifies them for a tax
abatement of six years under the current City policy.
FINANCIAL IMPACT:      The City will capture certain additional property taxes

                                                                                   2
generated by the expansion.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of six years for personal property.
The Public Hearing opened to hear and consider any comments from the
public. Steve kutches, President, gave an explanation of the project. No
comments were made by the public.
Motion by Commissioner Turnquist, second by Commissioner German to close
the Public Hearing and approve the resolution granting an Industrial Facilities
Exemption Certificate for a term of six years for personal property for AFI Hole
Drill.
ROLL VOTE: Ayes: German, Wierengo, Turnquist, Markowski, Gawron, Hood, and
           Spataro
            Nays: None
MOTION PASSES
      B. Request for an Industrial Facilities Exemption Certificate – AFI
         Machining. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Pursuant to Public Act 198 of 1974, as amended, AFI
Machining, 1920 Port City Blvd., has requested the issuance of an Industrial
Facilities Tax Exemption Certificate. The total capital investment will be $595,500
in personal property and will create two jobs. This qualifies them for a tax
abatement of six years.
FINANCIAL IMPACT: The City will capture certain additional property taxes
generated by the expansion.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the resolution granting an Industrial
Facilities Exemption Certificate for a term of six years for personal property.
The Public Hearing opened to hear and consider any comments from the
public. Steve kutches, President, commented on the project. No comments
were made by the public.
Motion by Vice Mayor Spataro, second by Commissioner Wierengo to close the
Public Hearing and approve the resolution granting an Industrial Facilities
Exemption Certificate for a term of six years for personal property for AFI
Machining.
ROLL VOTE: Ayes: Wierengo, Turnquist, Markowski, Gawron, Hood, Spataro, and
           German,
            Nays: None

                                                                                 3
MOTION PASSES
ANY OTHER BUSINESS: Comments were made reference Bike Time and
Smartzone.
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 6:20 pm.


                                             Respectfully submitted




                                             Ann Marie Cummings, MMC
                                             City Clerk




                                                                       4
        Commission Meeting Date: November 12, 2013




Date:       October 31, 2013
To:         Honorable Mayor & City Commission
From:       Planning & Economic Development Department
RE:         Moratorium on fees for 2014 Vacant Buildings


SUMMARY OF REQUEST: Request to approve a moratorium on fees
charged to owners of vacant buildings that are entering their sixth year
billing cycle or under in 2014. Eligibility requirements for the moratorium
of fees charged are proposed to remain the same as the 2013.
Moratoriums would be determined based on the criteria included on the
attached Vacant Building Registration Moratorium with one addition to
item number 3 of the criteria (in bold):
      3. There were no more than 2 environmental letters sent to the address with
      no work being performed at the address in the vacancy years in question nor
      did the City need to board the structure in order to secure it.

FINANCIAL IMPACT: Exact amount unknown but should be minimal.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends approval of a fee
moratorium for vacant building invoices meeting the approved criteria.
COMMITTEE RECOMMENDATION: None
             Vacant Building Registration Moratorium on 6th year fees.

A proposed billing moratorium could be initiated for the year of 2014, impacting all
structures that are about to enter their sixth vacant building billing cycle or under. This
moratorium would apply only to structures that meet certain criteria to insure that the
structure is being properly maintained and the owners are current on all their
responsibilities to the various city departments.

The criteria staff feels a vacant building would have to meet to qualify for a moratorium
of fee are:

   1.      All taxes & fees, such as mowing charges, vacant building registration,
           landlord registrations, business registrations and any other applicable fees,
           must be fully paid and current.
   2.      All city supplied utilities for the property must be fully paid.
   3.      There were no more than 2 environmental letters sent to the address with no
           work being performed at the address in the vacancy years in question nor did
           the City need to board the structure in order to secure it.
   4.      The building owner can demonstrate that they have made recent investments
           in the vacant building during the vacancy period or in the case of a building
           in good condition, they have continued to provide the necessary financial
           support for the building to be in usable and move-in condition.
   5.      The property has been listed during the vacancy period and is still currently
           listed for sale with a professional realty firm.

Due to the complexities of the overall program, city staff would utilize our current
appeal process to administer the moratorium and the owners that feel they qualify would
be required to apply for the moratorium after being billed. To make the public aware of
this opportunity, we would have to mail a notice to each qualified owner informing them
of the moratorium and its requirements to qualify. If the owner felt they could meet the
criteria, they would apply with supporting documentation, if they do not meet the criteria
we would hope they would not apply for it and consume staff time with the reviews.

Because of the criteria that must be met and the large number of structures that we will
be billing, staff would not be able to review all the invoices prior to billing. We simply
do not know if all of the structures can meet the criteria and we do not have the staff to
make those determinations in advance.

Using the appeal process, staff can make the determination by requiring the owner to
provide some of the above listed information and this will cut down on staff time spent.
Even so, this will substantially increase the amount of time staff must spend processing
paperwork for this program.
                  Agenda Item No. _________



Date:     11/12/13

To:       Honorable Mayor and City Commission

From:     Department of Public Works

RE:      Emergency Pump Replacement at Beach
         Street Lift Station.
________________________________________________________

SUMMARY OF REQUEST: Authorize staff to purchase a new pump
from Kennedy Industries for the Beach Street Lift Station.



FINANCIAL IMPACT: Total cost $16,603.00.




BUDGET ACTION REQUIRED: None, expenditures for the purchase
would come from the Sewer Budget.




STAFF RECOMMENDATION: Approve purchase.
Memorandum
To: Mohammed Al-Shatel
From: Dave Baker
Date: 11/7/2013
Re: Pump Replacement at Beach Street Lift Station




       The number 1 pump at Beach Street Lift Station failed and was sent to
Kennedy Industries for repair. Several of the parts that need repair are no longer
available or take a long time to receive and are very expensive. I recommend
replacing the pump with a new Flygt Pump from Kennedy Industries at the quoted
price of $16,603.00 including installation.

       Kennedy Industries replaced pump number 2 in 2009. I would like to replace
pump number 1 with the same style of pump and Kennedy Industries is the sole
distributer of Flygt Pumps.



David Baker

Superintendent of Public Utilities




                                                                                     1
                                                                                                             QUOTATION
                                                                                                   DATE             NUMBER         PAGE
                                                                                                 9/11/2013           48861         1 of 1




                                                                           Accepted By:
        B   MUS300
        I                                                                  Company:
        L   CITY OF MUSKEGON, WATER & SEWER DEPT.
        L   WATER & SEWER DEPARTMENT                                       Date:
       T    1350 E. KEATING
       O    MUSKEGON, MI 49442                                             PO#:


       ATTENTION:
       DAVE BAKER          DAVE.BAKER@SHORELINECITY.COM


WE ARE PLEASED TO PROPOSE THE FOLLOWING FOR YOUR CONSIDERATION:

CUSTOMER REF/PO #       JOB #                              JOB TITLE                                   SLP          SHIPPING TYPE
       QUOTE             48861                BEACH STREET REPLACEMENT PUMP                         AKM / MJH        FRT ALLOWED


 QTY   DESCRIPTION

       PUMP STATION EQUIPMENT CONSISTING OF:

       (1) FLYGT NP3171.091 PUMP WITH 454 IMP, FLS, FM, FV, LSB, SSCJ
           AND 50' CABLE RATED 30/460/3.

       (1) 4" X 6" COMPACT FLG REDUCER.

       (1) UL LISTED MINI CAS --- SHIPPED LOOSE.

       (1) BASE FOR MINI CAS --- SHIPPED LOOSE.

       (1) INSTALLATION OF MINI CAS.

       NET PRICE: --- $16,603.00
       *********************************************************************************************************

       WE DO NOT INCLUDE: CONCRETE, ANCHOR BOLTS, PIPING, VALVES, STARTERS, CONTROLS, CONDUIT, WIRING OR JUNCTION
       BOXES

       WE APPRECIATE THIS OPPORTUNITY TO QUOTE AND LOOK FORWARD TO BEING OF FUTURE SERVICE.

       SINCERELY,
       MARK J. HEMEYER / AKM




             This proposal is subject to Kennedy's standard terms and conditions of sale (rev'd 5/2011), which are attached or
            viewable at www.kennedyind.com. Terms of payment are net 30 days from date of invoice with 1-1/2% per month
                                                    additional charge on unpaid balance.
                                 NO TAXES OF ANY KIND ARE INCLUDED IN THIS PROPOSAL

  P.O. Box 180      52900 Grand River       New Hudson, MI 48165-0180  Phone: 248-684-1200  Fax: 248-684-6011
                                                www.KennedyInd.com
Date:        November 12, 2013
To:          Honorable Mayor and City Commissioners
From:        Engineering
RE:          Acceptance of an Easement ADAC Automotive,
             INC. @ the Southwest corner of Keating & Port
             City Blvd.


SUMMARY OF REQUEST:
Accept a bike path easement from ADAC Automotive Inc., to construct and maintain
a bike path at the south west corner of Keating Ave. & Port City Blvd. and authorize
the mayor & clerk to sign the easement documents and direct staff to record said
easement.

FINANCIAL IMPACT:
None



BUDGET ACTION REQUIRED:
None at this time.


STAFF RECOMMENDATION:
Accept easement of the easement and direct staff to record said easement.



COMMITTEE RECOMMENDATION:
Date:    November 12, 2013

To:      Honorable Mayor and City Commissioners

From: DPW
RE:      Winter Closure of Beach Street between Lakeshore Dr. & Beachwood
         Park from the 3rd Friday in December to the 3rd Friday in March.


SUMMARY OF REQUEST:

Authorize staff to annually close Beach Street from Lakeshore Dr. Beachwood Park.
The closure would take effect from the third Friday in December until the third Friday of
the following March.


FINANCIAL IMPACT:
Cost of man-power to install signage/barricades, if approved.



BUDGET ACTION REQUIRED:
None.


STAFF RECOMMENDATION:
Authorize staff to annually install signage/barricades for the Temporary 90-Day Closure of
Beach Street.



COMMITTEE RECOMMENDATION:
Commission Meeting Date: November 12, 2013


Date:       November 5, 2013
To:         Honorable Mayor and City Commission
From:       Community and Neighborhood Services Department
RE:         Approval of the Fair Housing Agreement with Muskegon County
__________________________________________________________________

SUMMARY OF REQUEST: The cities of Muskegon, Muskegon Heights, Norton
Shores and the County of Muskegon are entering into an agreement with the Fair
Housing Center of West Michigan to conduct fair housing testing in the County of
Muskegon per the recommendation of the 2009 Analysis of Impediments Report.

FINANCIAL IMPACT: Based on population, the City of Muskegon will pay
$4,675 of the $15,000 cost..

STAFF RECOMMENDATION:             To approve the attached Agreement and
authorize the Mayor to sign.
                        FAIR HOUSING SERVICES AGREEMENT

      Cities of Muskegon, Muskegon Heights, and Norton Shores and County of Muskegon
                                            and
                           Fair Housing Center of West Michigan

This Agreement is effective as of this 1st day of January, 2014, by and between the City of
Muskegon, a Michigan municipal corporation with its principal offices located at 933 Terrace
Street, Muskegon MI, 49443; the City of Muskegon Heights, a Michigan municipal corporation
with its principal offices located at 2424 Peck Street, Muskegon Heights, MI 49444; the City of
Norton Shores, a Michigan municipal corporation with its principal offices located at 4814
Henry Street, Norton Shores, MI 49441 (City of Muskegon, City of Muskegon Heights and City
of Norton Shores are hereinafter the “Cities”); the County of Muskegon (hereinafter the
“County”), a Michigan municipal corporation with its principal offices located at 990 Terrace
Avenue, Muskegon, MI 49442; and the Fair Housing Center of West Michigan (hereinafter
the “FHCWM”), a Michigan non-profit corporation with its principal offices located at 20 Hall
Street SE, Grand Rapids, MI 49507.

I.       AGREEMENT OUTCOMES

The purpose of this Agreement is to decrease impediments to housing choice and to promote
open, diverse communities by way of the provision of fair housing services based on the Fair
Housing Act, 42 USC §3601 et.seg


     II. AGREEMENT ACTIVITIES AND DEFINITIONS

            A. General Activities
                  i. Education and Outreach. The FHCWM will conduct a community
                     outreach program throughout the County and the Cities to educate housing
                     consumers, professionals and the general public concerning fair housing.
                     As part of a comprehensive, regional program, the FHCWM will
                     disseminate fair housing information to housing consumers, and
                     housing/human service agencies in order to educate them about housing
                     rights, and to increase awareness and reporting of discriminatory practices.
                     The FHCWM will also provide fair housing information to sales, rental,
                     and lending professionals in order to encourage their voluntary
                     compliance with federal, state and local fair housing laws. The FHCWM
                     will disseminate materials on a community-wide basis in order to promote
                     understanding of fair housing and the benefits thereof, and to increase
                     general public awareness regarding equal access to housing opportunity.
                     Such services will include the provision of formal fair housing training
                     upon request. The FHCWM shall also provide technical assistance to the
                     staff of the Cities and the County in response to any and all questions
                     regarding unlawful housing discrimination or fair housing practices. The
                     FHCWM will complete a minimum of 15 hours of education and outreach
                     activities throughout the County and the Cities.




Fair Housing Services Agreement January 1, 2014 – December 31, 2014                  Page 1 of 5
                  ii. Complaint Investigation. The FHCWM shall receive, review, investigate
                      and process all complaints of unlawful housing discrimination involving
                      people and/or properties located within the Cities or the County which the
                      FHCWM may receive from residents of any of the Cities or the County, a
                      person wishing to reside in any of the Cities or the County, or any other
                      source during the term of this Agreement. In the absence of an individual
                      complainant, the FHCWM will initiate enforcement action in those cases
                      where evidence of potential discrimination exists, as deemed necessary
                      and appropriate at the sole discretion of the FHCWM.

           B. Housing Tests within the Cities. The FHCWM shall conduct a minimum of seven
              (7) fair housing tests (at least one (1) per City) involving people and/or property
              within any of the Cities in order to investigate compliance with fair housing laws
              in the areas of sales, rental, advertising, insurance, appraisal and/or financing.
              The fair housing tests shall be based upon bona fide complaints or conducted on a
              survey basis, with a focus on complaint-based testing. All housing testing will be
              conducted by trained testers according to generally-accepted housing testing
              methodology. In the absence of an individual complaint, the FHCWM will
              initiate enforcement action in those cases where evidence of potential
              discrimination exists, as deemed necessary and appropriate at the sole discretion
              of the FHCWM.

           C. Housing Tests within the County. The FHCWM shall conduct a minimum of six
              (6) fair housing tests involving people and/or property within the County in order
              to investigate compliance with fair housing laws in the areas of sales, rental,
              advertising, insurance, appraisal and/or financing. The fair housing tests shall be
              based upon bona fide complaints or conducted on a survey basis, with a focus on
              complaint based testing. All housing testing will be conducted by trained testers
              according to generally-accepted housing testing methodology. In the absence of
              an individual complaint, the FHCWM may initiate enforcement in those cases
              where evidence of potential discrimination exists, as deemed necessary and
              appropriate at the sole discretion of the FHCWM.


III.   MONITORING REPORTS

The FHCWM shall provide the County with program performance reports which contain
information regarding the activities carried out and the results of those activities. Reports shall
be submitted bi-annually, within 30 days after the conclusion of each six-month reporting period.
The County will forward the reports to each of the Cities by July 30, 2014 and January 30, 2014.
The complaint and testing activities will be reported by municipality.




Fair Housing Services Agreement January 1, 2014 – December 31, 2014                    Page 2 of 5
IV.    COMPENSATION AND METHOD OF PAYMENT

           A. For the performance of the activities under this Agreement, the Cities and the
              County hereby agree to pay the FHCWM the amount of $15,000.00 (fifteen
              thousand dollars) following the table below:

         Municipality         Approx. Population     Percentage of total     Financial Responsibility
City of Muskegon                          40,000                      31%                    $4,675
City of Norton Shores                     22,000                      17%                    $2,635
City of Muskegon Heights                  10,000                        9%                   $1,190
County of Muskegon                       172,000                      43%                    $6,500
                     TOTALS                                          100%                   $15,000

           B. The Cities and the County shall pay the FHCWM the amount of $15,000.00
              (fifteen thousand dollars) in two (2) bi-annual installments of $7,500.00 (seven
              thousand five hundred dollars).

                    i. The FHCWM shall submit an invoice to the County in the amount of
                       $7,500.00 (seven thousand five hundred dollars) with each of its two (2)
                       reports required by this Agreement. Each invoice will be payable within
                       30 days of its date of issue.

                   ii. If payment is not made by one or more of the Cities or the County, the
                       County shall immediately notify the FHCWM in writing of the reason for
                       nonpayment, services will immediately cease, and the FHCWM will be
                       reimbursed for work completed under the terms of the contract up to the
                       date of said notification.


V. CONFIDENTIALITY

The Parties agree that by virtue of entering into this Agreement, they will have access to certain
confidential information regarding each other’s operations related to this project. All Parties
agree that they will not at any time disclose confidential information and/or material without the
consent of that Party unless such disclosure is authorized by this Agreement or required by law.
Unauthorized disclosure of confidential information shall be considered a material breach of this
agreement. This provision shall be subject to the provisions of the Freedom of Information Act.


VI. NONDISCRIMINATION

There shall be no discrimination of any Individual on account of race, color, creed, religion, sex,
marital status, weight, age, handicap, ancestry, national origin and any other statutorily protected
class.



Fair Housing Services Agreement January 1, 2014 – December 31, 2014                     Page 3 of 5
VII.   TERM

This Agreement will begin January 1, 2014, and will continue until December 31, 2014.

Any Party may terminate their participation with this Agreement for any reason by giving the
other Parties ninety (90) days prior written notice. If a Party provides such written notice of
termination, prior to the expiration of said ninety (90) day period the remaining Parties retain the
right to amend the Agreement to continue services; else, the effective date of termination by one
Party will serve as the effective date of the termination of the Agreement.


VIII. SEVERABILITY

In the event any provision of this Agreement shall be found to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the
validity, legality and enforceability of the remainder of the Agreement.


IX. AMENDMENTS

This Agreement may be amended only with the mutual written consent of the Parties.


XI. ADDITIONAL REQUIREMENTS

The FHCWM will act as an independent contractor and the contract cannot be assigned. The
FHCWM will indemnify the Cities and the County and will add the governmental units
identified in the contract as an additional insured. The FHCWM at the time of the execution of
the contract will provide to the County of Muskegon a copy of their insurance coverage and
limits. The insurance coverage shall include but not be limited to general liability, no fault
automobile insurance and workers compensation insurance.




Fair Housing Services Agreement January 1, 2014 – December 31, 2014                     Page 4 of 5
XII. CERTIFICATION OF AUTHORITY TO SIGN AGREEMENT

The persons signing this Agreement on behalf of the Cities, County and FHCWM hereto certify
by said signatures that they are duly authorized to sign this Agreement.

XIII.    APPROVAL AND SIGNATURES

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written.


CITY OF MUSKEGON

By:                                                        Date:
        Stephen J. Gawron, Mayor



CITY OF MUSKEGON HEIGHTS

By:                                                        Date:
        Darrell Paige, Mayor



CITY OF NORTON SHORES

By:                                                        Date:
        Gary Nelund, Mayor



COUNTY OF MUSKEGON

By:                                                        Date:
        Kenneth Mahoney, Chairman
        Muskegon County Board of Commissioners



FAIR HOUSING CENTER OF WEST MICHIGAN

By:                                                        Date:
        Nancy Haynes, Executive Director




Fair Housing Services Agreement January 1, 2014 – December 31, 2014             Page 5 of 5
                 Commission Meeting Date: November 12, 2013




Date:         November 7, 2013
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Extending the Master Plan


SUMMARY OF REQUEST:

The Michigan Zoning and Enabling Act requires that municipalities review their Master Plan
every five years and decide whether they need to update it or extend the current plan. Staff
feels that current plan developed 1997, which was also updated in 2008, is still sufficient and
that focus should be put on the current zoning ordinance amendment. Planning
Commission unanimously voted in favor of extending the current Master Plan at their special
meeting on October 31. Staff is requesting permission to extend the Master Plan and to
authorize staff to distribute the Master Plan to surrounding municipalities and ask for
comments as required by the Michigan Zoning and Enabling Act. The municipalities will
have 63 days to comment, then the Planning Commission will hold a public hearing to
extend the current plan.

FINANCIAL IMPACT:

None

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval to extend the Master Plan and authorization to distribute the plan.

COMMITTEE RECOMMENDATION:

None




11/7/2013
Date:     November 12, 2013

To:       Honorable Mayor and City Commissioners

From: Engineering
RE:       Resolution Authorizing the SAW Grant Agreement


SUMMARY OF REQUEST:

Adopt the attached resolution for the SAW Grant which Prien & Newhof (engineer) was
authorized back in June of this year to prepare.


FINANCIAL IMPACT:
None at this time.



BUDGET ACTION REQUIRED:
None at this time.

STAFF RECOMMENDATION:
Adopt the attached resolution



COMMITTEE RECOMMENDATION:




C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\adopt the resolution for SAW 11-
12-13.doc
                                          Michigan Finance Authority

                             Stormwater, Asset Management, and Wastewater (SAW)
                                            GRANT AGREEMENT

This Grant Agreement (“Agreement”) is made as of                       20___, among the Michigan
Department of Environmental Quality,Office of Drinking Water and Municipal Assistance (the "DEQ"), the
Michigan Finance Authority (the "Authority") (the DEQ and the Authority are, collectively, the "State") and
the ________________ ________________, County of ________________("Grantee") in consideration for
providing grant assistance to the Grantee.

The purpose of this Agreement is to provide funding for the project named below.The State is authorized to
provide grant assistance pursuant to the Natural Resources and Environmental Protection Act, 1994 PA
451, as amended. Legislative appropriation of funds for grant disclosure is set forth in 2013 Public Act 59.

The Grantee shall be required to repay the grant made under this Agreement (the "Grant"),
within 90 days of being informed by the State to do so, under certain conditions, as set
forth in Section XVIII. Program Specific Requirements: SAW Grant.

Award of a Grant under this Agreement and completion of the activities identified in Exhibit A does not
guarantee loan assistance from the State Revolving Fund, Strategic Water Quality Initiatives Fund, or
Stormwater, Asset Management or Wastewater.

GRANTEE INFORMATION:                                                GRANT INFORMATION:

________________________________                          Project Name: __________________________
Name/Title of Authorized Representative
________________________________                          Project #:_____________________________
Address
________________________________                          Amount of Grant:$________________________
Address
________________________________                          Amount of Match $__________________
Telephone number
________________________________                          Project Total $_______________ (grant plusmatch)
E-mail address
________________________________                          Start Date: ___________End Date: __________




DEQ REPRESENTATIVE:                                                 AUTHORITY REPRESENTATIVE:

_____________________________                             ________________________________
Name/Title                                                Name/Title
_____________________________                             ________________________________
Address                                                   Address
_____________________________                             ________________________________
Address                                                   Address
_____________________________                             ________________________________
Telephone number                                          Telephone number
_____________________________                             ________________________________
E-mail address                                            E-mail address




THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                                  1                                     Rev. October 21, 2013
The individuals signing below certify by their signatures that they are authorized to sign this
Grant Agreement on behalf of their respective parties, and that the parties will fulfill the terms of
this Agreement, including the attached Exhibit A, and use this Grant only as set forth in this
Agreement.

GRANTEE

_______________________________________                        ____________________________
Signature of Grantee                                           Date

_______________________________________
Name and title (typed or printed)


MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY

_______________________________________                        _____________________________
Its Authorized Officer                                         Date


MICHIGAN FINANCE AUTHORITY

___________________________________________                    _______________________________
Its Authorized Officer                                         Date


I. PROJECT SCOPE

This Agreement shall be in addition to any other contractual undertaking by the Grantee contained
in the Resolution authorizing the Grant (the "Resolution").

This Agreement, including its exhibit(s), constitutes the entire agreement between the DEQ, the
Authority, and the Grantee.

(A) The scope of this Grant is limited to the activities specified in Exhibit A (the "Project"), and
    such activities as are authorized by the State under this Agreement. Any change in project
    scope requires prior written approval in accordance with Section III, Changes, in this
    Agreement.

(B) By acceptance of this Agreement, the Grantee commits to complete the Project identified in
    Exhibit A within the time period allowed for in this Agreement and in accordance with the
    terms and conditions of this Agreement.

II.AGREEMENT PERIOD

This Agreement shall take effect on the date that it has been signed by all parties (the "Effective
Date"). The Grantee shall complete the Project in accordance with all the terms and conditions
specified in this Agreement no later than the EndDate shown on page one. Only costs incurred
on or after January 2, 2013 and between the Start Date and the End Date shall be eligible
for payment under this Grant.



THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                             2                                     Rev. October 21, 2013
III.CHANGES

Any decreases in the amount of the Grantee's compensation, significant changes to the Project,
or extension of the End Date, shall be requested by the Grantee in writing, and approved in
writing by the State in advance. The State reserves the right to deny requests for changes to
the Agreement including its Exhibit A. No changes can be implemented without approval by the
State.

IV.GRANTEE PAYMENTS AND REPORTING REQUIREMENTS

The Grantee shall meet the reporting requirements specified in Section XVIII of this Agreement.

V.GRANTEE RESPONSIBILITIES

(A) The Grantee agrees to abide by all local, state, and federal laws, rules, ordinances and
    regulations in the performance of this Grant.

(B) All local, state, and federal permits, if required, are the responsibility of the Grantee. Award
    of this Grant is not a guarantee of permit approval by the state.

(C) The Grantee shall be solely responsible to pay all taxes, if any, that arise from the Grantee’s
    receipt of this Grant.

(D) The Grantee is responsible for the professional quality, technical accuracy, timely
    completion, and coordination of all designs, drawings, specifications, reports, and other
    services furnished by its subcontractors under this Agreement. The State will consider the
    Grantee to be the sole point of contact concerning contractual matters, including payment
    resulting from this Grant. The Grantee or its subcontractor shall, without additional grant
    award, correct or revise any errors, omissions, or other deficiencies in designs, drawings,
    specifications, reports, or other services.

(E) The DEQ’s approval of drawings, designs, specifications, reports, and incidental work or
    materials furnished hereunder shall not in any way relieve the Grantee of responsibility for
    the technical adequacy of the work. The DEQ’s review, approval, acceptance, or payment
    for any of the services shall not be construed as a waiver of any rights under this Agreement
    or of any cause of action arising out of the performance of this Agreement.

(F) The Grantee acknowledges that it is a crime to knowingly and willfully file false information
    with the State for the purpose of obtaining this Agreement or any payment under the
    Agreement, and that any such filing may subject the Grantee, its agents, and/or employees
    to criminal and civil prosecution and/or termination of the Grant.

VI.ASSIGNABILITY

The Grantee shall not assign this Agreement or assign or delegate any of its duties or
obligations under this Agreement to any other party without the prior written consent of the
State. The State does not assume responsibility regarding the contractual relationships
between the Grantee and any subcontractor.




THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                            3                                    Rev. October 21, 2013
VII.NON-DISCRIMINATION

The Grantee shall comply with the Elliott Larsen Civil Rights Act, 1976 PA 453, as amended,
MCL 37.2101 et seq, the Persons with Disabilities Civil Rights Act, 1976 PA 220, as amended,
MCL 37.1101 et seq, and all other federal, state, and local fair employment practices and equal
opportunity laws and covenants that it shall not discriminate against any employee or applicant
for employment, to be employed in the performance of this Agreement, with respect to his or her
hire, tenure, terms, conditions, or privileges of employment, or any matter directly or indirectly
related to employment, because of his or her race, religion, color, national origin, age, sex,
height, weight, marital status, or physical or mental disability that is unrelated to the individual’s
ability to perform the duties of a particular job or position. The Grantee agrees to include in
every subcontract entered into for the performance of this Agreement this covenant not to
discriminate in employment. A breach of this covenant is a material breach of this Agreement.

VIII. UNFAIR LABOR PRACTICES

The Grantee shall comply with the Employers Engaging in Unfair Labor Practices Act, 1980 PA
278, as amended, MCL 423.321 et seq.

IX.LIABILITY

(A) The Grantee, not the State, is responsible for all liabilities as a result of claims, judgments, or
costs arising out of activities to be carried out by the Grantee under this Agreement, if the liability
is caused by the Grantee, any subcontractor, or anyone employed by the Grantee.

(B) All liability as a result of claims, demands, costs, or judgments arising out of activities to be
carried out by the State in the performance of this Agreement is the responsibility of the State
and not the responsibility of the Grantee if the liability is materially caused by any State
employee or agent.

(C) In the event that liability arises as a result of activities conducted jointly by the Grantee and
the State in fulfillment of their responsibilities under this Agreement, such liability is held by the
Grantee and the State in relation to each party’s responsibilities under these joint activities.

(D) Nothing in this Agreement should be construed as a waiver of any governmental immunity
by the Grantee, the State, its agencies, or their employees as provided by statute or court
decisions.

X.CONFLICT OF INTEREST

No government employee or member of the legislative, judicial, or executive branches or
member of the Grantee's governing body, its employees, partner, agencies or their families shall
have benefit financially from any part of this Agreement.

XI.AUDIT AND ACCESS TO RECORDS

See Section XVIII (C).

XII.INSURANCE

(A) The Grantee shall maintain insurance or self insurance that will protect it from claims that may
    arise from the Grantee’s actions under this Agreement or from the actions of others for whom
THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                              4                                     Rev. October 21, 2013
    the Grantee may be held liable.
(B) The Grantee must comply with applicant workers’ compensation laws while engaging in
    activities authorized under this Agreement.

XIII. OTHER SOURCES OF FUNDING

The Grantee guarantees that any claims for reimbursement made to the State under this
Agreement shall not be financed by any source other than the State under the terms of this
Agreement. If funding is received through any other source, the Grantee agrees to delete from
Grantee's billings or to immediately refund to the State, the total amount representing such
duplication of funding.

XIV.COMPENSATION

(A) A breakdown of Project costs covered under this Agreement is identified in Exhibit A. The
    State will pay the Grantee a total amount not to exceed the amount on page one of this
    Agreement, in accordance with Exhibit A, and only for expenses incurred. All other costs over
    and above the Grant amount, necessary to complete the Project, are the sole responsibility of
    the Grantee.

(B) The Grantee is committed to the match amount on page one of this Agreement, in accordance
    with Exhibit A. The Grantee shall expend all local match committed to the Project by the End
    Date of this Agreement.

(C) The State will approve payment requests after approval of reports and related documentation
    as required under this Agreement.

(D) The State reserves the right to request additional information necessary to substantiate
    payment requests.

XV.CLOSEOUT

(A)             A determination of Project completion shall be made by the DEQ after the Grantee
      has met any match obligations and satisfactorily completed the activities and provided
      productsand deliverables described in Exhibit A.

(B) Upon issuance of final payment from the State, the Grantee releases the State of all claims
    against the State arising under this Agreement. Unless otherwise provided in this Agreement
    or by State law, final payment under this Agreement shall not constitute a waiver of the
    State's claims against the Grantee.

(C) The Grantee shall immediately refund to the State any payments or funds in excess of the
    costs allowed by this Agreement.

XVI. CANCELLATION

This Agreement may be canceled by the State, upon 30 days written notice, due to Executive
Order, budgetary reduction, or other lack of funding upon request by Grantee or upon mutual
agreement by the State and Grantee. The State reserves the right to provide just and equitable
compensation to the Grantee for all satisfactory work completed under this Agreement.



THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                            5                                   Rev. October 21, 2013
XVII. TERMINATION

(A) This Agreement may also be terminated by the State for any of the following reasons upon
30 days written notice to the Grantee:

     (1) If the Grantee fails to comply with the terms and conditions of the Agreement or with the
requirements of the authorizing legislation cited on page 1 or the rules promulgated thereunder,
or with other applicable law or rules.

    (2) If the Grantee knowingly and willfully presents false information to the State for the
purpose of obtaining this Agreement or any payment under this Agreement.

     (3) If the State finds that the Grantee, or any of the Grantee’s agents or representatives,
offered or gave gratuities, favors, or gifts of monetary value to any official, employee, or agent of
the State in an attempt to secure a subcontract or favorable treatment in awarding, amending,
or making any determinations related to the performance of this Agreement.

      (4) During the 30-day written notice period, the State shall also withhold payment for any
findings under subparagraphs 1 through 3, above.

     (5) If the Grantee or any subcontractor, manufacturer, or supplier of the Grantee appears in
the register of persons engaging in unfair labor practices that is compiled by the Michigan
Department of Licensing and Regulatory Affairs or its successor.

(B) The State may immediately terminate this Agreement without further liability if the Grantee,
or any agent of the Grantee, or any agent of any subagreement, is:

     (1) Convicted of a criminal offense incident to the application for or performance of a state,
public, or private contract or subcontract;

     (2) Convicted of a criminal offense, including but not limited to any of the following:
embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen
property, or attempting to influence a public employee to breach the ethical conduct standards
for State of Michigan employees;

    (3) Convicted under state or federal antitrust statutes;

     (4) Convicted of any other criminal offense which, in the sole discretion of the State,
reflects on the Grantee’s business integrity; or

(C) If a grant is terminated, the State reserves the right to require the Grantee to repay all or a
portion of funds received under this Agreement.

XVIII. PROGRAM-SPECIFIC REQUIREMENTS: SAW REPAYABLE GRANT

(A) General Representations. The Grantee represents and warrants to, and agrees with, the
Authority and DEQ, as of the date hereof as follows:

    (1) Grant funds shall be expended only to cover costs for the development of an Asset
Management Plan, Stormwater Management Plan, innovative wastewater or stormwater
technology, construction costs for disadvantaged communities, or for planning, design and user
charge development.
THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                            6                                    Rev. October 21, 2013
   (2) Grant funds used for administrative activities or activities performed by municipal
employees shall be limited to work that is directly related to the Project and is conducted by
employees of the Grantee.

     (3) The Grantee has full legal right, power and authority to execute this Agreement, and to
consummate all transactions contemplated by this Agreement, the Resolution, and any and all
other agreements relating thereto. The Grantee has duly authorized and approved the
execution and delivery of this Agreement, the performance by the Grantee of its obligations
contained in this Agreement, and this Agreement is a valid, legally binding action of the
Grantee, enforceable in accordance with the terms thereof except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting
the rights of creditors generally, and by principles of equity if equitable remedies are sought.

     (4) The Resolution has been duly adopted by the Grantee, acting through its executive(s)
or governing body, is in full force and effect as of the date hereof, and is a valid, legally binding
action of the Grantee, enforceable in accordance with the terms thereof except as enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws
affecting the rights of creditors generally, and by principles of equity if equitable remedies are
sought.

      (5) The execution and delivery of this Agreement by the Grantee, and the fulfillment of the
terms and conditions of, and the carrying out of the transactions contemplated by the Resolution
and this Agreement do not and will not conflict with or constitute on the part of the Grantee a
breach of, or a default under any existing law (including, without limitation, the Michigan
Constitution), any court or administrative regulation, decree or order or any agreement,
indenture, mortgage, obligation, lease or other instrument to which the Grantee is subject or by
which it is bound and which breach or default would materially affect the validity or binding effect
of the Grant, or result in a default or lien on any assets of the Grantee. No event has occurred
or is continuing which with the lapse of time or the giving of notice, or both, would constitute a
default by the Grantee under the Resolution or this Agreement.

     (6) No consent or approval of, or registration or declaration with, or permit from, any
federal, state or other governmental body or instrumentality, is or was required in connection
with enactment by the Grantee of the Resolution, or execution and delivery by the Grantee of
this Agreement which has not already been obtained, nor is any further election or referendum
of voters required in connection therewith which has not already been held and certified and all
applicable referendum periods have expired.

     (7) Proceeds of the Grant will be applied (i) to the financing of the Project or a portion
thereof as set forth in the Resolution and Exhibit A or (ii) to reimburse the Grantee for a portion
of the cost of the Project. The Grantee will expend the proceeds of each disbursement of the
Grant for the governmental purpose for which the Grant was issued.

    (8) The attached Exhibit A contains a summary of the estimated cost of the Project, which
the Grantee certifies is a reasonable and accurate estimate.

    (9) The Grantee reasonably expects (i) to fulfill all conditions set forth in this Agreement to
receive and to keep the Grant, and (ii) that no event will occur as set forth in this Agreement
which will require the Grantee to repay the Grant.



THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                            7                                     Rev. October 21, 2013
(B) Repayment of Grant. The Grantee shall repay the Grant, within 90 days of being informed
to do so, with interest calculated from the date Grant funds are first drawn at a rate not to
exceed 8% per year, to be determined by the Authority, to the Authority for deposit into the
SWQIF.

       “(a) A grant recipient (shall) proceed with a project for which grant funding is
       provided within 3 years after the department approves the grant (executed grant
       agreement). For asset management programs related to sewage collection and
       treatment systems, this includes significant progress, as determined by the
       department, toward achieving the funding structure necessary to implement the
       program.

       (b) The grant recipient (shall) repay the grant, within 90 days of being informed to
       do so, with interest at a rate not to exceed 8 percent per year, to the Authority for
       deposit into the fund if the applicant is unable to, or decides not to, proceed with
       a construction project or begin implementation of an asset management program
       for which grant funding is provided.”

SAW grant recipients for wastewater system asset management plans are required to make
significant progress on the funding structure. Significant progress is defined as a 5-year plan to
eliminated the gap with a minimum initial rate increase to close at least 10 percent of the funding
gap. The first rate increase must be implemented within three years of the executed grant. The
applicant will need to certify that all grant activities have been completed at the end of three years.
Asset management plans for stormwater systems are to be implemented. Stormwater
management grant recipients must develop a stormwater management plan. Innovative project
grant receipients must proceed with full implementation or certify that the project is not financially
or technically feasible.

(C) Covenants and Certifications.

    (1) The Grantee has the legal, managerial, institutional, and financial capability to plan,
design, and build the Project, or cause the Project to be built, and cause all facilities eventually
constructed to be adequately operated.

      (2) The Grantee certifies that no undisclosed fact or event, or pending litigation, will
materially or adversely affect the Project, the prospects for its completion, or the Grantee’s
ability to make timely repayments of the grant if any of the two (2) conditions identified under
Section XVIII(B) occur.

     (3) The Grantee agrees to provide the minimum appropriate local match for grant-eligible
costs and disburse match funds to service providers concurrent with grant disbursements.
     (4) The Grantee agrees to maintain complete books and records relating to the grant and
financial affairs of the Project in accordance with generally accepted accounting principles
("GAAP") and generally accepted government auditing standards ("GAGAS").

     (5) The Grantee agrees that all municipal contracts related to the Project will provide that
the contractor and any subcontractor may be subject to a financial audit and must comply with
GAAP and GAGAS.

     (6) The Grantee agrees to provide any necessary written authorizations to the DEQ and
the Authority for the purpose of examining, reviewing, or auditing the financial records of the

THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                             8                                     Rev. October 21, 2013
Project. The applicant also agrees to require similar authorizations from all contractors,
consultants, property owners or agents with which the applicant negotiates an agreement.

      (7) The Grantee agrees that all pertinent records shall be retained and available to the
DEQ and the Authority for a minimum of three years after satisfactory completion of the Project
and final payment. If litigation, a claim, an appeal, or an audit is begun before the end of the
three-year period, records shall be retained and available until the three years have passed or
until the action is completed and resolved, whichever is longer.

    (8) The Grantee agrees to ensure that planning and design activities of the Project are
conducted in compliance with the requirements of the Natural Resources and Environmental
Protection Act, 1994 PA 451, as amended, its Administrative Rules; and all applicable state and
federal laws, executive orders, regulations, policies, and procedures.

     (9) The Grantee agrees that the Project shall proceed in a timely fashion and will exercise
its best efforts to satisfy the program requirements as identified under Section XVIII(B) within
three years of award of the SAW Grant from the Strategic Water Quality Initiatives Fund in
accordance with Section 5204(e) of the Natural Resources and Environmental Protection Act
1994, PA 451, as amended.

      (10) The Grantee acknowledges that acceptance of a wastewater asset management grant
will subsequently affect future NPDES permits to include asset management language as
applicable.

(D) Grantee Reimbursements and Deliverables

The Grantee may request grant disbursements no more frequently than monthly, using the
Disbursement Request Form provided by the DEQ. Upon receipt of a disbursement request,
the DEQ will notify the Authority, which will in turn disburse grant funds equal to 75 percent, 90
percent, or 100 percent of eligible costs, whichever percentage is applicable, that have been
adequately documented. The forms provided by the State will include instructions on their use
and shall be submitted to the DEQ representative at the address on page 1. All required
supporting documentation (invoices) for expenses must be included with the disbursement
request form. The Grantee is responsible for the final submittal of all documents prepared
under this Grant and included in the Project Scope identified in Exhibit A.

(E) Miscellaneous Provisions.

     (1) Applicable Law and Nonassignability. This Agreement shall be governed by the laws of
the State of Michigan.

    (2) Severability. If any clause, provision or section of this Agreement be ruled invalid or
unenforceable by any court of competent jurisdiction, the invalidity or unenforceability of such
clause, provision or section shall not affect any of the remaining clauses, provisions or sections.

    (3) Execution of Counterparts. This Agreement may be executed in several counterparts
each of which shall be regarded as an original and all of which shall constitute one and the
same document.

XIX.USE OF MATERIAL



THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                            9                                   Rev. October 21, 2013
Unless otherwise specified in this Agreement, the Grantee may release information or material
developed under this Agreement, provided it is acknowledged that the DEQ funded all or a
portion of its development.

XX.SUBCONTRACTS

The State reserves the right to deny the use of any consultant, contractor, associate or other
personnel to perform any portion of the project. The Grantee is solely responsible for all
contractual activities performed under this Agreement. Further, the State will consider the
Grantee to be the sole point of contact with regard to contractual matters, including payment of
any and all charges resulting from the anticipated Grant. All subcontractors used by the
Grantee in performing the project shall be subject to the provisions of this Agreement and shall
be qualified to perform the duties required.

XXI. ANTI-LOBBYING

If all or a portion of this Agreement is funded with state funds, then the Grantee shall not use
any of the grant funds awarded in this Agreement for the purpose of lobbying as defined in the
State of Michigan’s lobbying statute, MCL 4.415(2). “‘Lobbying’ means communicating directly
with an official of the executive branch of state government or an official in the legislative branch
of state government for the purpose of influencing legislative or administrative action.” The
Grantee shall not use any of the grant funds awarded in this Agreement for the purpose of
litigation against the State. Further, the Grantee shall require that language of this assurance
be included in the award documents of all subawards at all tiers.

XXII. IRAN SANCTIONS ACT

By signing this Agreement, the Grantee is certifying that it is not an Iran linked business, and
that its contractors are not Iran linked businesses as outlined in Michigan Compiled Law
129.312

XXIII.DEBARMENT AND SUSPENSION

By signing this Agreement, the Grantee certifies to the best of its knowledge and belief that it, its
agents, and its subcontractors:

     (1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or
         voluntarily excluded from covered transactions by any federal department or the state.

     (2) Have not within a 3-year period preceding this Agreement been convicted of or had a
         civil judgment rendered against them for commission of fraud or a criminal offense in
         connection with obtaining, attempting to obtain, or performing a public (federal, state, or
         local) transaction or contract under a public transaction as defined in 45 CFR 1185;
         violation of federal or state antitrust statutes or commission of embezzlement, theft,
         forgery, bribery, falsification or destruction of records, making false statements, or
         receiving stolen property.

     (3) Are not presently indicted or otherwise criminally or civilly charged by a government
         entity (federal, state, or local) with commission of any of the offenses enumerated in
         subsection (2).

     (4) Have not within a 3-year period preceding this Agreement had one or more public
         transactions (federal, state, or local) terminated for cause or default.
THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                            10                                   Rev. October 21, 2013
    (5) Will comply with all applicable requirements of all other state or federal laws, executive
        orders, regulations, and policies governing this program.




THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                           11                                  Rev. October 21, 2013
                                                                       Project No. ________________
                                              SAW Grant Program

                                                      Exhibit A

Grantee: ____________________________________________________________________

Project Name: ________________________________________________________________

DEQ Approved Grant Amount: $ ______________; __________________________________

                                          ___________________________________________Dollars

Time Period for Eligible Costs: Start Date             ________________________ (month/year)

                                     End Date          ________________________ (month/year)

Description of Approved Project Scope:
____________________________________________________________________________

_____________________________________________________________________________



                                          DEQ Approved Project Costs

  1. Project Planning Costs

  2. Design Engineering Costs

  3. User Charge Development Costs

  4. Wastewater Asset Management Plan Costs

  5. Stormwater Asset Management Plan Costs

  6. Stormwater Management Plan Costs

  7. Innovative Wastewater and Stormwater Technology Costs

  8. Disadvantaged Community Construction Cost

  9. Cost Subtotal

  10. LESS Local Match

  11. Requested SAW Grant Amount (Line 9 minus Line 10)


The following services have been determined to be ineligible for SAW Grant assistance, for the
reasons listed, and have been excluded from the approved project costs shown above:
____________________________________________________________________________

____________________________________________________________________________
THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                                     12                            Rev. October 21, 2013
THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                        13                                Rev. October 21, 2013
                                         APPENDIX A
                            Wastewater Planning and Design Activities


       Note: User Charge Development Costs can be included in either a planning or design grant.

       Planning Grant Requirements

       Applicants intending to fund projects through USDA Rural Developmentare required to develop a
       Preliminary Engineering Report and an Environmental Report per Rural Development guidelines.

       Applicants intending to fund projects through a SAW loan or other funding source are required to
       develop a project proposal in accordance with the guidance below.

       Applicants intending to fund projects through an SRF or SWQIF loan are required to develop a
       project plan in accordance with the Project Plan Preparation Guidance
       (http://www.michigan.gov/documents/deq/deq-ess-mfs-formsguidance-
       SRFppsguide_249032_7.dot).

       Design Grant Requirements

       All applicants are required to develop and submit plans and specifications suitable for bidding.

       Applicants intending to fund projects through USDA Rural Developmentare required to submit a
       Preliminary Engineering Report and an Environmental Report per Rural Development guidelines.

       Applicants intending to fund projects through a SAW loan or other funding source are required to
       submit an approvable project proposal in accordance with the guidance below. If seeking a SAW
       loan, the project proposal should reference an asset management plan.

       Applicants intending to fund projects through an SRF or SWQIF loan are required to submit an
       approvable Project Plan.




THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                               14                                      Rev. October 21, 2013
                                                Project Proposal

       Below are the minimum requirements for a project proposal.

       1.      Study Area Identification and Description

               a. Cover the geographic area served by or affected by the proposed project. For example,
                  for a nonpoint source (NPS) project that is replacing an asphalt mall parking lot with
                  porous pavers, the study area should encompass, at least, the parking lot, mall, and
                  properties that abut the parking lot.

               b. Population Data – include if relevant (e.g., needed when discussing asset management
                  associated with future needs that would be based on population projections).

               c. Environmental Setting – include description of environmental features relevant to
                  project’s geographical area and project construction activities. Include a map.

                           If present, identify wetlands, floodplains, natural/wild scenic rivers surface
                            waters, parks, agriculture land, and endangered/threatened species. A
                            Michigan Natural Features Inventory review should be conducted unless the
                            applicant can show that construction is limited to a developed area.

               d. Do NOT include land use and economic characteristics, unless relevant to the project.

       2.      Existing Facilities

               Should be described to the extent that existing facilities are included in the project or will
               be affected by the project.

       3. Project Need

               Describe in detail the need for the project, as well as any relevant permit compliance issues
               and water quality problems. Facility or project needs should be evaluated for a time period
               equal to the service life of the proposed project (i.e., the proposal should evaluate needs for
               a timeframe long enough so that the proposed project doesn’t become ineffective after only
               a few years or before the loan has been paid).

       4. Description of Project Options Considered

               Provide a description of the options considered to address the proposed project including a
               brief description of the costs and potential environmental impacts.

       5. Proposed Project

               Provide a detailed description of the proposed project including cost estimates and a
               construction schedule, as well as maps and/or diagrams.

       6. Evaluation of Environmental Impacts

               Discuss impacts from project construction and operation. Include a description of measures
               to mitigate impacts and the beneficial impacts.
THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                                15                                       Rev. October 21, 2013
                                GUIDANCE FOR APPENDIX A

                                            Grant Eligible

   Planning
    Costs associated with the development of a SAW loan project proposal, SRF/SWQIF project
       plan, or other similar planning documents.
    Equipment and services for the purchase, installation, and operation of flow meters necessary for
       an infiltration and inflow (I/I) analysis.
    Costs to prepare an eligible SAW grant application, including force account work.
    Force account costs. The maximum rate for fringe benefits of force account costs is 40 percent of
       salary.

   Design
    Force account costs. The maximum rate for fringe benefits of force account costs is 40 percent of
      salary.
    Costs of preparing a basis of design, value engineering services, and preparation of plans and
      specifications. Any design-related service required to obtain the construction permit. This
      includes easement-related services for property surveys and easement descriptions.

   User Charge System Development Costs
    The costs associated with developing or updating the applicant’s system of rates and user charges
      to cover the costs of project construction, operation, and maintenance.
    The costs to develop, amend, and pass sewer use ordinances, and prepare or revise intermunicipal
      service agreements, or rate methodologies that are necessary for construction of the proposed
      project.


                                             Grant Ineligible

  Planning and Design
   Purchase price and associated costs to acquire land/easements such as appraisals, title searches,
      easement agreement preparation, legal notices, and closing costs.
   Bidding phase services, including construction staking.




THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                             16                                     Rev. October 21, 2013
                                          APPENDIX B
                               Planning and/or Design of Stormwater
                             and/or Nonpoint Source of Water Pollution


Required Information
SAW grant assistance for stormwater and/or NPS projects must address a water quality problem. If the
project is identified in one of the following documents, please submit the document with the application
unless it has already been submitted to the DEQ for review and approval. (If the document has been
submitted to the DEQ for review, please provide the name of the DEQ staff member in receipt of the
document.)

       An approved 319/CMI NPS watershed plan
       A Municipal Separate Storm Sewer System (MS4) permit (if the proposed project is required under
        the permit, then attach an explanation to this application)
       An approved Total Maximum Daily Load (attach an explanation to this application)
       A SAW stormwater management plan


Planning Grant Requirements

Applicants intending to fund projects through USDA Rural Development are required to develop a
Preliminary Engineering Report and an Environmental Report per Rural Development guidelines.

Applicants intending to fund projects through a SAW loan or other funding source are required to develop a
project proposal in accordance to the guidance in Appendix A.

Applicants intending to fund projects through an SRF or SWQIF loan are required to develop a project plan
in accordance with the Project Plan Preparation Guidance (http://www.michigan.gov/documents/deq/deq-
ess-mfs-formsguidance-SRFppsguide_249032_7.dot).

Design Grant Requirements

All applicants are required to develop and submit plans and specifications suitable for bidding.

Applicants intending to fund projects through USDA Rural Development are required to submit a
Preliminary Engineering Report and an Environmental Report per Rural Development guidelines.

Applicants intending to fund projects through a SAW loan or other funding source are required to submit an
approvable project proposal in accordance with the guidance in Appendix A.

Applicants intending to fund projects through an SRF or SWQIF loan are required to submit an approvable
project plan.




THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                                17                                       Rev. October 21, 2013
                                GUIDANCE FOR APPENDIX B

                                            Grant Eligible

   Planning
    Costs associated with the development of a SAW loan project proposal, SRF/SWQIF project
       plan, or other similar planning documents.
    Equipment and services for the purchase, installation, and operation of flow meters for a
       hydrological study of a storm sewer system or a watershed.
    Costs to prepare an eligible SAW grant application, including force account work.
    Force account costs. The maximum rate for fringe benefits of force account costs is 40 percent of
       salary.

   Design
    Force account costs. The maximum rate for fringe benefits of force account costs is 40 percent of
      salary.
    Costs of preparing a basis of design, design and preparation for construction permit(s), value
      engineering services, and preparation of plans and specifications. This includes easement-related
      services for property surveys and easement descriptions.

   User Charge System Development Costs
    The costs associated with developing or updating the applicant’s system of rates and user charges
      to cover the costs of project construction, operation, and maintenance.
    The costs to develop, amend, and pass sewer use ordinances, and prepare or revise intermunicipal
      service agreements, or rate methodologies that are necessary for construction of the proposed
      project.

                                                Grant Ineligible

  Planning and Design
   Post-construction monitoring of stormwater best management practices (BMP) performance to
      determine effectiveness.
   Purchase price and associated costs to acquire land/easements such as appraisals, title searches,
      easement agreement preparation, legal notices, and closing costs.
   Bidding phase services, including construction staking.




THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                             18                                     Rev. October 21, 2013
                                      APPENDIX C
                   Asset Management Plan for Stormwater and Wastewater


A. Proposed Scope of Work

   Applicants can seek AMP grant assistance to cover the costs of the asset management plan
   development and implementation for wastewater and stormwater systems. This includes a complete
   inventory of all existing system assets. If the condition of the asset is not known, a reasonable
   assumption is acceptable. Cleaning and televising of the entire system is not expected.

   If the wastewater AMP identifies a gap in the current revenue needs to meet expenses, then
   significant progress must be made toward achieving the funding structure necessary to operate the
   system. If no gap is identified, the applicant has fulfilled the significant progress requirement.
   Significant progress is defined as a 5-year plan to eliminate the gap with a minimum initial rate
   increase to close at least 10 percent of the funding gap. The first rate increase must be implemented
   within three years of the executed grant. The applicant will need to certify that all grant activities
   have been completed at the end of three years and submit a copy of the 5-year plan with the
   certification.

   The stormwater AMP must be implemented within three years of the executed grant. The applicant is
   required to submit the Stormwater AMP Certification of Project Completeness within three years of
   the executed grant.

   Describe the specific activities you will fund with the AMP grant assistance. Attach additional pages
   as necessary:
   _________________________________________________________________________________
   _________________________________________________________________________________
   _________________________________________________________________________________


B. Describe your current asset management plan as applicable:
   _________________________________________________________________________________
   _________________________________________________________________________________
   _________________________________________________________________________________

   Provide the percentage of tasks completed and describe each asset management component of your
   current asset management plan

       1.   Asset Inventory and Condition Assessment
       2.   Level of Service
       3.   Criticality of Assets
       4.   Operation and Maintenance (O&M) Strategies/Revenue Structure
       5.   Long-term Funding/Capital Improvement Planning


C. Revenue Structure (for wastewater only)

   Attach a copy of the current rates. It is expected that the applicant will submit an updated copy of the
   rate methodology within 2 ½ years of the executed grant to the DEQ.



THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                              19                                      Rev. October 21, 2013
    If the applicant currently does not have a rate methodology, the asset management plan must include
    the development of a funding structure and rate methodology that provides sufficient resources to
    implement the asset management plan.

    Is the applicant part of a regional facility?  YES  NO


D. Cross-Sectoring

    Section 2504 e (2)(i) states that “The municipality shall coordinate, as feasible, with other
    infrastructure activities in the same geographic area.”Asset management encourages cross-sector
    utilization (for water utility, roads,gas, phones, etc.); however grant assistance may only be requested
    for those costs directly related to the requested asset management grant.

    If cross-sectoring occurs, describe how SAW costs will be tracked.
    _________________________________________________________________________________
    _________________________________________________________________________________
    _________________________________________________________________________________


E. Project Cost Worksheet
    Carefully read the guidance below before completing the Project Cost Worksheet.

        Item               Incurred          Force          Estimated        Supporting          Total
                             Costs          Account           Costs          Documents
                                             Costs
Inventory                                                                   Y       N
Condition assessment                                                        Y       N
(excluding televising)
Metering/modeling                                                           Y       N
AM/GIS Software*                                                            Y       N
AM/GIS Training*                                                            Y       N
AM/GIS Hardware*                                                            Y       N
Cleaning &Televising                                                        Y       N
Contracted costs
Equip. rentalcosts
Laborcosts
Level of Service                                                            Y       N
  Service agreement
development
  Public meeting cost
  Ordinance cost
Training/certification                                                      Y       N
For PACP
For MACP
Rate Structure                                                              Y       N
Development costs
Other                                                                       Y       N
*Indicates items included in the cost limitations for software, hardware, and training as described in the
Guidance below.


THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                                20                                     Rev. October 21, 2013
F. National Pollutant Discharge Elimination System (NPDES) Permits for Municipal Wastewater
   Systems Only (Not Stormwater)

   Do you currently hold a NPDES permit to cover discharges from your wastewater system?
           YES  NO

   If Yes, what is the permit number? ________________________

   If you have a NPDES permit, does it currently contain an asset management requirement?
            YES  NO

   Note:For all NPDES permit holders, the applicant acknowledges that acceptance of a SAW
   wastewater asset management grant will result in an asset management condition in the next reissued
   NPDES permit. The asset management plan developed must meet NPDES permit requirements. The
   NPDES permit language can be found at: www.michigan.gov/cleanwaterrevolvingfund (select Forms
   and Guidance).


                                GUIDANCE FOR APPENDIX C

                                            Grant Eligible

      AMP/Geographic Information System (GIS) mapping software/hardware/training. Total limits
       are as follows:

                        Service Area Population                    Dollar Limit
                Less than or equal to 5,000                                  $60,000
                5,001 to less than or equal to 20,000                        $85,000
                20,001 to less than or equal to 50,000                      $110,000
                Greater than 50,000                                         $160,000

       Note: Attach justification when assistance is sought for an applicant with an existing GIS system
       or for when an exception is being made to the above dollar limits.

      Asset condition assessment (manhole inventory, cleaning and televising)
          o All televising and documentation must be completed in accordance with National
               Association of Sewer Service Companies (NASSCO) Pipeline Assessment and
               Certification Program/Manhole Assessment Certification Program
               (PACP/MACP)requirements and by PACP/MACP certified personnel.
          o Equipment rental costs for force account work of cleaning and televising equipment
               owned by the applicant will be reimbursed at rates no greater than those provided in an
               informal quote on a per foot basis.
          o A justification is needed to clean and televise sewers installed or relined within the last
               20 years. The limit is to encourage communities to focus on sewers installed or relined
               prior to 1993.

      Force account costs associated with the direct implementation of the AMP/GIS software and
       hardware. The maximum rate for fringe costs is 40 percent of salary.

      The technical, legal, and financial costs to develop a funding structure and implementation
       schedule necessary to implement an AMP, or portion thereof. These tasks include those costs
       associated with the preparation or amendment of sewer use and rate ordinances, stormwater

THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                             21                                     Rev. October 21, 2013
        management ordinances, policies and design standards, preparation or revision of inter-municipal
        service agreements, and submittal of the proposed budgets and rate methodologies.

       Any specific tasks named as a condition of an NPDES permit not identified elsewhere in this
        guidance, such as mapping without GIS, a fixed asset inventory, a business risk evaluation, an
        annual report of operation, maintenance, and replacement (OM&R)/AMP activities, etc.

       Aerial data collection at the 12-inch resolution when it is purchased from the county or obtained
        from the state (for GIS purposes only).

       The development of a stormwater funding structure is not required; however, an analysis of costs
        to maintain the system and to support the asset management program must be included.

       Stormwater utility development costs.

       Level of service may include service agreement development, public meeting costs, and
        ordinance costs.


                                              Grant Ineligible

      Annual license renewals to an existing GIS system.

      Legal fees to defend the rate structure if challenged.




THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                                22                                    Rev. October 21, 2013
Please Use the Attached Resolution “As Is”
   (Do Not Substitute Your Own Form)
                       ____________________of__________________
                              County of __________________

                       Resolution Authorizing the SAW Grant Agreement

Minutes of the regular meeting of the ____________ of the______________ of_____________
County of _________________, State of Michigan, (the “Municipality”) held on
____________________.


PRESENT: Members: ______________________________________________
_______________________________________________________

ABSENT:     Members: _______________________________________________
________________________________________________________


Member ___________________offered and moved the adoption of the following resolution,
seconded by Member______________________ .

WHEREAS, Part 52 (strategic water quality initiatives) of the Natural Resources and
Environmental Protection Act, 1994 PA 451, as amended (“Part 52”), provides at MCL
324.5204e that the Michigan Finance Authority (the “MFA”) in consultation with the Michigan
Department of Environmental Quality (the “DEQ”) shall establish a strategic water quality
initiatives grant program; and

WHEREAS, in accordance with the provisions of 2012 PA 511, which provides grants to
municipalities for sewage collection and treatment systems or storm water or nonpoint source
pollution control; and

WHEREAS, in accordance with the provisions of 1985 PA 227, as amended, Part 52, and other
applicable provisions of law, the MFA, the DEQ, and the Municipality that is a grant recipient
shall enter into a grant agreement (the "SAW Grant Agreement") that requires the Municipality
to repay the grant under certain conditions as set forth in MCL 324.5204e, as amended; and

WHEREAS, the Municipality does hereby determine it necessary to (select one or more)
☐establish anasset management plan, ☐establish astormwater management plan, ☐establish
aplan for wastewater/stormwater, ☐establish adesign of wastewater/stormwater, ☐ pursue
innovative technology, or ☐ initiate construction activities (up to $500,000 for disadvantaged
community).

WHEREAS, it is the determination of the Municipality that at this time, a grant in the aggregate
principal amount not to exceed _________________ (“Grant”) be requested from the MFA and
the DEQ to pay for the above-mentioned undertaking(s); and

THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                           3                                  Rev. October 21, 2013
WHEREAS, the Municipality shall obtain this Grant by entering into the SAW Grant Agreement
with the MFA and the DEQ.

NOW, THEREFORE, BE IT RESOLVED THAT:

1. The Director of Public Works (title of the desginee’s position), a position currently held
by Mohammed Al-Shatel (name of the designee), is designated as the Authorized Representative
for purposes of the SAW Grant Agreement.

2. The proposed form of the SAW Grant Agreement between the Municipality, the MFA and
DEQ (attached Sample Grant Agreement) is hereby approved and the Authorized Representative
is authorized and directed to execute the SAW Grant Agreement with such revisions as are
permitted by law and agreed to by the Authorized Representative.

3. The Municipality shall repay the Grant, within 90 days of being informed to do so, with
interest at a rate not to exceed 8 percent per year, to the Authority if the Municipality is unable
to, or decides not to, proceed with constructing the project or implementing the asset
management program for which the funding is provided within 3 years of the Grant award.

4. The Grant, if repayable, shall be a first budget obligation of the Municipality, and the
Municipality is required, if necessary, to levy ad valorem taxes on all taxable property in the
Municipality for the payment thereof, subject to applicable constitutional, statutory and
Municipality tax rate limitations.

5. The Municipality shall not invest, reinvest or accumulate any moneys deemed to be Grant
funds, nor shall it use Grant funds for the general local government administration activities or
activities performed by municipal employees that are unrelated to the project.

6. The Authorized Representative is hereby jointly or severally authorized to take any actions
necessary to comply with the requirements of the MFA and the DEQ in connection with the
issuance of the Grant. The Authorized Representative is hereby jointly or severally authorized to
execute and deliver such other contracts, certificates, documents, instruments, applications and
other papers as may be required by the MFA or the DEQ or as may be otherwise necessary to
effect the approval and delivery of the Grant.

7. The Municipality acknowledges that the SAW Grant Agreement is a contract between the
Municipality, the MFA and the DEQ.

8. All resolutions and parts of resolutions insofar as they conflict with the provisions of this
Resolution are rescinded.


YEAS: Members:

NAYS: Members:




THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                             4                                    Rev. October 21, 2013
RESOLUTION DECLARED ADOPTED

I hereby certify that the foregoing is a true and complete copy of a resolution adopted by
the______________________ of the ______________________ of ______________________ ,
County of ____________________ , said meeting was conducted and public notice of said
meeting was given pursuant to and in full compliance with the Open Meetings Act, being Act
267, Public Acts of Michigan, 1976, and that the minutes of said meeting were kept and will be
or have been made available as required by said Act.


                                             _________________________________________
                                             Name
                                             _______________of___________________ , Clerk
                                             __________of___________ County of _________




THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                         5                                  Rev. October 21, 2013
THE FORM WILL NOT BE ACCEPTED IF IT HAS BEEN EDITED, ALTERED, RETYPED, OR CONVERTED TO ANY
OTHER FORMAT.
                                        6                                 Rev. October 21, 2013
                 Commission Meeting Date: November 12, 2013




Date:         November 7, 2013
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Public Hearing - Request for an Industrial Facilities Exemption
              Certificate – ADAC Plastics, 2050 Port City Blvd


SUMMARY OF REQUEST:

Pursuant to Public Act 198 of 1974, as amended, ADAC Plastics, 2050 Port City Blvd, has
requested the issuance of an Industrial Facilities Tax Exemption Certificate. The company
will be making an investment of $725,000 in real property improvements and plans on
creating up to 90 jobs as part of the overall project, qualifying them for a 12 year abatement.

FINANCIAL IMPACT:

The City will capture certain additional property taxes generated by the expansion (see
attached Summary Sheet).

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the attached resolution granting an Industrial Facilities Exemption Certificate for
a term of 12 years on real property.

COMMITTEE RECOMMENDATION:

None




11/7/2013
                                             Resolution No. _______

                                       MUSKEGON CITY COMMISSION

                          RESOLUTION APPROVING APPLICATION FOR ISSUANCE
                           OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE
                                            ADAC Plastics


WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on July 26, 1983,
     this Commission by resolution established an Industrial Development District as requested by the City
     of Muskegon for Port City Industrial Park, including the property owned by ADAC Plastics, 2050 Port
     City Blvd, Muskegon, Michigan 49442; and

WHEREAS, ADAC Plastics has filed an application for the issuance of an Industrial Facilities Tax Exemption
     Certificate with respect to a building expansion within said Industrial Development District ; and

WHEREAS, before acting on said application the Muskegon City Commission held a public hearing on
     November 12, 2013, at the Muskegon City Hall in Muskegon, Michigan at 5:30 p.m. at which hearing
     the applicant, the assessor and representatives of the affected taxing units were given written notice
     and were afforded an opportunity to be heard on said application; and

WHEREAS, construction of the facility and installation of new machinery and equipment had not begun earlier
     than six (6) months before October 18, 2013, the date of acceptance of the application for the Industrial
     Facilities Exemption Certificate; and

WHEREAS, the building expansion is calculated to and will have the reasonable likelihood to retain, create, or
     prevent the loss of employment in Muskegon, Michigan; and

WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of Muskegon, will
     not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real
     property thus exempted.

NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon,
      Michigan that:

          1) The Muskegon City Commission finds and determines that the Certificate considered together with
             the aggregate amount of certificates previously granted and currently in force under Act No. 198 of
             the Public Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 as amended shall
             not have the effect of substantially impeding the operation of the City of Muskegon or impairing the
             financial soundness of a taxing unit which levies ad valorem property taxes in the City of
             Muskegon.

          2) The application of ADAC Plastics, for the issuance of an Industrial Facilities Tax Exemption
             Certificate with respect to the building expansion and installation of new machinery and equipment
             on the following described parcels of real property situated within the City of Muskegon to wit:

                  CITY OF MUSKEGON PORT CITY INDUSTRIAL CENTER LOTS 9 THRU 12


          3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force and
             effect for a period of 12 years on real property.




11/7/13
Adopted this 12th Day of November, 2013.


Ayes:

Nays:

Absent:

                                                   BY: __________________________________
                                                          Stephen J. Gawron
                                                          Mayor

                                              ATTEST: __________________________________
                                                         Ann Cummings
                                                         Clerk




                                               CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a regular meeting held on November 12, 2013.


                                                            ______________________________
                                                            Ann Cummings
                                                            Clerk




11/7/13
                 Commission Meeting Date: November 12, 2013




Date:         November 7, 2013
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Public Hearing - Request for an Industrial Facilities Exemption
              Certificate – ADAC Plastics, 2653 Olthoff Dr


SUMMARY OF REQUEST:

Pursuant to Public Act 198 of 1974, as amended, ADAC Plastics, 2653 Port City Blvd, has
requested the issuance of an Industrial Facilities Tax Exemption Certificate. The company
will be making an investment of $926,270 in real property improvements and plans on
creating up to 90 jobs as part of the overall project, qualifying them for a 12 year abatement.

FINANCIAL IMPACT:

The City will capture certain additional property taxes generated by the expansion (see
attached Summary Sheet).

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the attached resolution granting an Industrial Facilities Exemption Certificate for
a term of 12 years on real property.

COMMITTEE RECOMMENDATION:

None




11/7/2013
                                            Resolution No. _______

                                       MUSKEGON CITY COMMISSION

                         RESOLUTION APPROVING APPLICATION FOR ISSUANCE
                          OF INDUSTRIAL FACILITIES EXEMPTION CERTIFICATE
                                           ADAC Plastics


WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on July 26, 1983,
     this Commission by resolution established an Industrial Development District as requested by the City
     of Muskegon for Port City Industrial Park, including the property owned by ADAC Plastics, 2653 Olthoff
     Dr, Muskegon, Michigan 49444; and

WHEREAS, ADAC Plastics has filed an application for the issuance of an Industrial Facilities Tax Exemption
     Certificate with respect to a building expansion within said Industrial Development District ; and

WHEREAS, before acting on said application the Muskegon City Commission held a public hearing on
     November 12, 2013, at the Muskegon City Hall in Muskegon, Michigan at 5:30 p.m. at which hearing
     the applicant, the assessor and representatives of the affected taxing units were given written notice
     and were afforded an opportunity to be heard on said application; and

WHEREAS, construction of the facility and installation of new machinery and equipment had not begun earlier
     than six (6) months before October 18, 2013, the date of acceptance of the application for the Industrial
     Facilities Exemption Certificate; and

WHEREAS, the building expansion is calculated to and will have the reasonable likelihood to retain, create, or
     prevent the loss of employment in Muskegon, Michigan; and

WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of Muskegon, will
     not exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real
     property thus exempted.

NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon,
      Michigan that:

          1) The Muskegon City Commission finds and determines that the Certificate considered together with
             the aggregate amount of certificates previously granted and currently in force under Act No. 198 of
             the Public Act of 1974 as amended and Act No. 255 of the Public Acts of 1978 as amended shall
             not have the effect of substantially impeding the operation of the City of Muskegon or impairing the
             financial soundness of a taxing unit which levies ad valorem property taxes in the City of
             Muskegon.

          2) The application of ADAC Plastics, for the issuance of an Industrial Facilities Tax Exemption
             Certificate with respect to the building expansion and installation of new machinery and equipment
             on the following described parcels of real property situated within the City of Muskegon to wit:

          CITY OF MUSKEGON THAT PART OF PORT CITY INDUSTRIAL CENTER #6
          LOT 70 COM NW COR LOT 70 TH S 89D 56M E 213.38 FT ALG N LN SD LOT TO
          POB TH S 89D 56M 486.77 FT TH S 00D 45M W 819.09 FT ALG E LN SD LOT TO S
          LN SEC 35 & SD LOT TH S 89D 59M W ALG S LN 487.73 FT TH N 00D 45M E TO
          POB




11/7/13
          3) The Industrial Facilities Tax Exemption Certificate is issued and shall be and remain in force and
             effect for a period of 12 years on real property.



Adopted this 12th Day of November, 2013.


Ayes:

Nays:

Absent:

                                                     BY: __________________________________
                                                            Stephen J. Gawron
                                                            Mayor

                                               ATTEST: __________________________________
                                                          Ann Cummings
                                                          Clerk




                                                CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a regular meeting held on November 12, 2013.


                                                             ______________________________
                                                             Ann Cummings
                                                             Clerk




11/7/13
                 Commission Meeting Date: November 12, 2013




Date:         November 7, 2013
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Public Hearing - Request for Exemption of New Personal
              Property (PA 328) – ADAC Plastics, 2050 Port City Blvd


SUMMARY OF REQUEST:

Pursuant to Public Act 328 of 1998, as amended, ADAC Plastics, Inc, 2050 Port City Blvd,
has requested an exemption of new personal property. The company plans on investing
over $5.7 million in personal property improvements at two Muskegon locations and is
seeking a 12 year exemption on personal property. The exemption would include all new
personal property investments during the duration of the exemption. The company plans on
hiring 90 employees as part of the overall project.

FINANCIAL IMPACT:

The City will forgo 100% of the new personal property taxes for the length of the abatement.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the exemption of new personal property for a duration on twelve (12) years.

COMMITTEE RECOMMENDATION:

None




11/7/2013
                                             Resolution No. _______

                                       MUSKEGON CITY COMMISSION

 RESOLUTION APPROVING APPLICATION FOR EXEMPTION OF NEW PERSONAL PROPERTY UNDER
                                   PA 328 OF 1998
                                   ADAC Plastics


WHEREAS, the City of Muskegon meets the definition of an “Eligible Local Assessing District” under PA 328 of
1998, Section 7(g), by virtue of containing an eligible distressed area as defined by Section 7(f)(i), in accordance
with PA 346 of 1966, Section 11; and

WHEREAS, the applicant, ADAC Plastics, meets the definition of an “Eligible Business” as defined by PA 328 of
1998 and is engaged primarily in manufacturing at the location of 2050 Port City Blvd, Muskegon, MI; and

WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on July 26,
1983, this Commission by resolution established an Industrial Development District as requested by the
City of Muskegon for Port City Industrial Park, including the property owned by ADAC Plastics, 2050 Port
City Blvd, Muskegon, Michigan 49442; and

WHEREAS, ADAC Plastics has filed an application for Exemption of New Personal Property with respect to
new personal property to be installed within said Industrial Development District ; and

WHEREAS, before acting on said application the Muskegon City Commission held a public hearing on
November 12, 2013, at the Muskegon City Hall in Muskegon, Michigan at 5:30 p.m. at which hearing the
applicant, the assessor and representatives of the affected taxing units were given written notice and were
afforded an opportunity to be heard on said application; and

WHEREAS, installation of new machinery and equipment had not begun earlier than six (6) months before
October 18, 2013, the date of acceptance of the application for the Exemption of New Personal Property; and

WHEREAS, the installation of machinery and equipment is calculated to and will have the reasonable likelihood
to retain, create, or prevent the loss of employment in Muskegon, Michigan; and


NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon,
      Michigan that:

          1) The Muskegon City Commission finds and determines that the Exemption considered together
             with the aggregate amount of certificates previously granted and currently in force under Act No.
             328 of the Public Act of 1998 as amended and Act No. 198 of the Public Act of 1974 as amended
             and Act No. 255 of the Public Acts of 1978 as amended shall not have the effect of substantially
             impeding the operation of the City of Muskegon or impairing the financial soundness of a taxing
             unit which levies ad valorem property taxes in the City of Muskegon.

          2) The application of ADAC Plastics, for the Exemption of New Personal Property with respect to the
             personal property expansion on the following described parcels of real property situated within the
             City of Muskegon to wit:

                  CITY OF MUSKEGON PORT CITY INDUSTRIAL CENTER LOTS 9 THRU 12




11/7/13
          3) The Exemption of New Personal Property is issued and shall be and remain in force and effect for
             a period of twelve (12) years on personal property.




Adopted this 12th Day of November 2013.


Ayes:

Nays:

Absent:

                                                   BY: __________________________________
                                                          Stephen J. Gawron
                                                          Mayor

                                              ATTEST: __________________________________
                                                         Ann Cummings
                                                         Clerk




                                               CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a regular meeting held on November 12, 2013.



                                                            ______________________________
                                                            Ann Cummings
                                                            Clerk




11/7/13
                 Commission Meeting Date: November 12, 2013




Date:         November 7, 2013
To:           Honorable Mayor and City Commissioners
From:         Planning & Economic Development
RE:           Public Hearing - Request for Exemption of New Personal
              Property (PA 328) – ADAC Plastics, 2653 Olthoff Dr


SUMMARY OF REQUEST:

Pursuant to Public Act 328 of 1998, as amended, ADAC Plastics, Inc, 2653 Olthoff Dr, has
requested an exemption of new personal property. The company plans on investing over
$5.7 million in personal property improvements at two Muskegon locations and is seeking a
12 year exemption on personal property. The exemption would include all new personal
property investments during the duration of the exemption. The company plans on hiring 90
employees as part of the overall project.

FINANCIAL IMPACT:

The City will forgo 100% of the new personal property taxes for the length of the abatement.

BUDGET ACTION REQUIRED:

None

STAFF RECOMMENDATION:

Approval of the exemption of new personal property for a duration on twelve (12) years.

COMMITTEE RECOMMENDATION:

None




11/7/2013
                                             Resolution No. _______

                                       MUSKEGON CITY COMMISSION

 RESOLUTION APPROVING APPLICATION FOR EXEMPTION OF NEW PERSONAL PROPERTY UNDER
                                   PA 328 OF 1998
                                   ADAC Plastics


WHEREAS, the City of Muskegon meets the definition of an “Eligible Local Assessing District” under PA 328 of
1998, Section 7(g), by virtue of containing an eligible distressed area as defined by Section 7(f)(i), in accordance
with PA 346 of 1966, Section 11; and

WHEREAS, the applicant, ADAC Plastics, meets the definition of an “Eligible Business” as defined by PA 328 of
1998 and is engaged primarily in manufacturing at the location of 2653 Olthoff Dr, Muskegon, MI; and

WHEREAS, pursuant to P.A. 198 of 1974 as amended, after duly noticed public hearing held on July 26,
1983, this Commission by resolution established an Industrial Development District as requested by the
City of Muskegon for Port City Industrial Park, including the property owned by ADAC Plastics, 2653
Olthoff Dr, Muskegon, Michigan 49444; and

WHEREAS, ADAC Plastics has filed an application for Exemption of New Personal Property with respect to
new personal property to be installed within said Industrial Development District ; and

WHEREAS, before acting on said application the Muskegon City Commission held a public hearing on
November 12, 2013, at the Muskegon City Hall in Muskegon, Michigan at 5:30 p.m. at which hearing the
applicant, the assessor and representatives of the affected taxing units were given written notice and were
afforded an opportunity to be heard on said application; and

WHEREAS, installation of new machinery and equipment had not begun earlier than six (6) months before
October 18, 2013, the date of acceptance of the application for the Exemption of New Personal Property; and

WHEREAS, the installation of machinery and equipment is calculated to and will have the reasonable likelihood
to retain, create, or prevent the loss of employment in Muskegon, Michigan; and


NOW, THEREFORE, BE IT RESOLVED by the Muskegon City Commission of the City of Muskegon,
      Michigan that:

          1) The Muskegon City Commission finds and determines that the Exemption considered together
             with the aggregate amount of certificates previously granted and currently in force under Act No.
             328 of the Public Act of 1998 as amended and Act No. 198 of the Public Act of 1974 as amended
             and Act No. 255 of the Public Acts of 1978 as amended shall not have the effect of substantially
             impeding the operation of the City of Muskegon or impairing the financial soundness of a taxing
             unit which levies ad valorem property taxes in the City of Muskegon.

          2) The application of ADAC Plastics, for the Exemption of New Personal Property with respect to the
             personal property expansion on the following described parcels of real property situated within the
             City of Muskegon to wit:

                  CITY OF MUSKEGON THAT PART OF PORT CITY INDUSTRIAL CENTER #6 LOT 70
                  COM NW COR LOT 70 TH S 89D 56M E 213.38 FT ALG N LN SD LOT TO POB TH S 89D




11/7/13
                  56M 486.77 FT TH S 00D 45M W 819.09 FT ALG E LN SD LOT TO S LN SEC 35 & SD LOT
                  TH S 89D 59M W ALG S LN 487.73 FT TH N 00D 45M E TO POB

          3) The Exemption of New Personal Property is issued and shall be and remain in force and effect for
             a period of twelve (12) years on personal property.




Adopted this 12th Day of November 2013.


Ayes:

Nays:

Absent:

                                                   BY: __________________________________
                                                          Stephen J. Gawron
                                                          Mayor

                                              ATTEST: __________________________________
                                                         Ann Cummings
                                                         Clerk




                                               CERTIFICATION

I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon
City Commission, County of Muskegon, Michigan, at a regular meeting held on November 12, 2013.



                                                            ______________________________
                                                            Ann Cummings
                                                            Clerk




11/7/13
Date: November 11, 2013
To: Honorable Mayor and City Commissioners
From: Finance Department
RE: Transmittal of 6/30/13 Comprehensive Annual Financial Report


SUMMARY OF REQUEST: The City's June 30, 2013 Comprehensive Annual
Financial Report (CAFR) has previously been distributed to City Commissioners via
email and hard copy. The CAFR is also available on the City’s website at
www.shorelinecity.com. The CAFR includes the annual independent auditor’s report
required by state law. At this time the CAFR is being formally transmitted to the City
Commission. The CAFR has been prepared in accordance with all current
Governmental Accounting Standards Board (GASB) pronouncements and also
includes the single-audit of federal grants received by the City.

FINANCIAL IMPACT: The CAFR report summarizes the City's financial activities
for the year and includes the independent auditor's unqualified opinion on the City's
financial statements.

BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Acceptance of the June 30, 2013 CAFR and
authorization for staff to transmit the CAFR to appropriate federal, state and private
agencies.

COMMITTEE RECOMMENDATION: None.
Date: November 11, 2013
To: Honorable Mayor and City Commissioners
From: Finance Department
RE: Supplemental MERS Contribution


SUMMARY OF REQUEST: One of the biggest financial challenges facing the
city is pension funding. Relative to other cities, Muskegon’s pension plans are
considered very well-funded. Moreover, the city has already made difficult choices –
including closing defined benefit pensions to new hires – that will stop the further
accumulation of long-term pension liabilities. Still, paying down our existing pension
legacy costs will present budget challenges for many years to come.

Based on successful financial results for the fiscal year ended June 30, 2013, staff
believes it is appropriate to take this opportunity to make a $500,000 supplemental
payment (above the actuarial computed contribution amount) to MERS. This is
money that the city would be required to pay to MERS eventually. Paying early -
while we are in a position to afford it - ensures time remains an ally (instead of an
enemy) and will help ease pressure on future city budgets.

FINANCIAL IMPACT: $500,000 supplemental payment to MERS. The impact to
the fund balance of the city’s general fund will be $300,000. The remaining $200,000
will be paid from monies previously set aside for MERS in the collector fund.

BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Authorize staff to make a supplemental
$500,000 payment to MERS no later than December 31, 2013.

COMMITTEE RECOMMENDATION: None.
Date: November 12, 2013
To:    Honorable Mayor and City Commissioners
From: Finance Department
RE:    First Quarter 2013-14 Budget Reforecast



SUMMARY OF REQUEST: At this time staff is transmitting the First Quarter 2013-
14 Budget Reforecast which outlines proposed changes to the original budget that
have come about as result of changes in revenue projections, policy priorities, labor
contracts, updated economic conditions, or other factors.

FINANCIAL IMPACT: Major first quarter proposed adjustments are as follows:
     The actual FY13 year-end fund balance for the General Fund was $5,653,558
     as compared to the estimated of $5,552,504 used in preparing the FY14
     budget.
     General fund revenues are estimated to be $103,042 higher than originally
     budgeted. The increase is attributable to higher building permit fees and state
     shared revenues.
     General Fund expenditures are forecast to be $367,350 higher than originally
     budgeted:
        o It is recommended that a supplemental $300,000 general fund
            contribution to MERS be made prior to year-end (see related agenda
            item).
        o Inspection costs will be $58,000 higher than budgeted due to higher
            than anticipated building activity and permit revenues.
     Other city funds are mostly in-line with original budget projections. Some
     proposed changes to these funds include:
        o Equipment fund revenues/expenditures are adjusted to reflect receipt
            of grant for police radios. Also, a large sewer jet truck purchase
            original scheduled for FY13 was made in FY14.
        o Sewer fund revenues/expenditures are adjusted to reflect receipt of
            grant for infiltration study.
        o Marina & Launch Ramp fund revenues/expenditures are adjusted to
            reflect receipt of grant for dredging.

BUDGET ACTION REQUIRED: City commission approval of this reforecast will
formally amend the City’s 2013-14 budget.

STAFF RECOMMENDATION: Approval.

COMMITTEE RECOMMENDATION: None.




                                                                               Page 1 of 40
    City of Muskegon
    2013-14 Budget Summary
    Summary of Budgeted Funds


                                                          Projected                                           Projected Ending        Increase
                                                       Beginning Fund                                               Fund          (Decrease) Fund
                                                       Balance/Working     Projected        Projected         Balance/Working     Balance/Working
    Fund Name                                              Capital         Revenues        Expenditures            Capital             Capital


1   General                                            $     5,653,558 $    23,286,247 $     24,143,050 $            4,796,755 $         (856,803)


2   Major Streets                                            2,153,684       3,852,945        4,915,727              1,090,902          (1,062,782)


3   Local Streets                                             422,159        1,677,698        1,774,549                325,308            (96,851)


4   Criminal Forfeitures Fund                                 172,578           18,700           14,530                176,748              4,170


5   Budget Stabilization Fund                                1,700,000                 -                  -          1,700,000                   -


6   Tree Replacement Fund                                        1,479           1,550            1,000                  2,029                550


7   Brownfield Authority Fund (Betten)                      (1,409,027)       128,290           157,580             (1,438,317)           (29,290)


8   Brownfield Authority Fund (Former Mall)                          -          79,249           79,249                      -                   -


9   Tax Increment Finance Authority Fund                        14,163          36,812           50,000                    975            (13,188)


10 Downtown Development Authority Debt Fund                   167,477         293,681           332,538                128,620            (38,857)


11 Local Development Finance Authority III Fund (SZ)            30,266        372,863           385,800                 17,329            (12,937)


12 Arena Improvement                                             4,867          14,200            5,000                 14,067              9,200


13 Sidewalk Improvement                                       469,488           41,000          152,140                358,348           (111,140)


14 Public Improvement                                         677,857         212,500           555,000                335,357           (342,500)


15 State Grants                                               126,257         538,500           529,216                135,541              9,284


16 Marina & Launch Ramp                                       206,007         394,800           393,027                207,780              1,773


17 Public Service Building                                    435,245        1,093,448          987,356                541,337            106,092


18 Engineering Services                                       123,887         480,500           455,631                148,756             24,869


19 Equipment                                                 1,821,689       2,318,500        3,697,950                442,239          (1,379,450)


20 General Insurance                                          880,314        4,048,046        4,035,378                892,982             12,668


21 Sewer                                                     4,158,969       6,874,351        7,520,411              3,512,909           (646,060)


22 Water                                                     2,303,174       6,467,299        5,922,421              2,848,052            544,878




     Total All Budgeted Funds                          $    20,114,091 $    52,231,179 $     56,107,553 $           16,237,717 $        (3,876,374)




                                                                                                                                    Page 2 of 40
                         CITY OF MUSKEGON
                           GENERAL FUND

                        HISTORICAL SUMMARY


                           Revenues &       Expenditures &    Fund Balance
    Year                   Transfers In      Transfers Out     at Year-End
    2000       $           23,685,516 $        22,232,657 $     2,951,734
    2001                   23,446,611          23,235,978       3,162,367
    2002                   23,617,163          23,971,534       2,807,996
    2003                   23,328,756          23,705,334       2,431,418
    2004                   23,401,793          23,388,019       2,445,192
    2005                   23,732,641          23,658,227       2,519,606
    2006                   24,669,210          24,498,776       2,690,040
    2007                   25,031,403          24,800,810       2,920,633
    2008                   25,563,632          26,100,539       2,383,726
    2009                   24,105,019          24,850,082       1,638,663
    2010*                  16,142,764          11,742,973       6,038,454
   2010-11                 24,029,686          25,556,758       4,511,382
   2011-12                 24,126,111          23,617,448       5,020,045
   2012-13                 23,628,056          22,708,893       5,653,558

                    Fiscal 2013-14 Budget Summary

FUND BALANCE AT START OF YEAR                                                $   5,653,558

MEANS OF FINANCING:
               Taxes                                           14,630,752        62.8%
               Licenses and Permits                             1,328,000        5.7%
               Federal Grants                                      42,675        0.2%
               State Grants                                        15,000        0.1%
               State Shared Revenue                             3,806,443        16.3%
               Other Charges                                    2,413,815        10.4%
               Fines and Fees                                     417,000        1.8%
               Other Revenue                                      429,313        1.8%
               Other Financing Sources                            203,249        0.9%
                                                               23,286,247        100.0%




ESTIMATED REQUIREMENTS:
               Customer Value Added Activities                 18,421,424         76.3%
               Business Value Added Activities                  4,090,924         16.9%
               Fixed Budget Items                               1,630,702         6.8%
                                                               24,143,050        100.0%

ESTIMATED FUND BALANCE AT END OF YEAR                                        $   4,796,755

             OPERATING DEFICIT (USE OF FUND BALANCE)                         $    (856,803)


* Six-month transition period to new fiscal year




                                                                                              Page 3 of 40
                 City of Muskegon
                 Annual Budget & Quarterly Budget Reforecast - General Fund


                                                                                           Original Budget                                                        Increase
                                                                                              Estimate       Actual to Date   Actual to Date   1Q Reforecast     (Decrease)
                                                        Actual FY2012    Actual FY2013         FY2014           9/30/13          9/30/12          FY2014        From Original
                 Available Fund Balance - BOY           $    4,511,382   $    5,020,045    $    5,552,504    $   5,653,558    $   4,511,382    $    5,653,558   $    101,054


                 Taxes
101-00000-4100   PROPERTY TAX                                6,275,258        5,686,870         5,429,962                -                 -        5,429,962               -
101-00000-4101   CHARGE BACK COLLECTED                               3                 -              200                 -                -              200               -
101-00000-4102   IN LIEU OF TAX                                 95,805           96,346            95,000                -                 -           95,000               -
101-00000-4103   IFT/CFT TAX                                    84,332           58,087            76,421                -                 -           76,421               -
101-00000-4104   PROPERTY TAX SANITATION                     1,638,466        1,484,252         1,429,169                -                 -        1,429,169               -
101-00000-4140   INCOME TAX                                  7,412,804        7,506,472         7,600,000        1,780,003        1,760,256         7,600,000               -
                                                        $   15,506,668   $   14,832,026    $   14,630,752    $   1,780,003    $   1,760,256    $   14,630,752   $           -

                 Licenses and permits
101-00000-4202   BUSINESS LICENSES & PERMITS                    30,642           31,623            29,500            4,585            5,573            29,500               -
101-00000-4203   LIQUOR LICENSES & TAX REBATE                   46,039           44,955            45,000           34,390           30,268            45,000               -
101-00000-4204   CABLE TV LICENSES OR FEES                     342,376          358,785           350,000                -                -           350,000               -
101-00000-4205   HOUSING LICENSES                               39,885           45,575            48,000            7,220            9,545            48,000               -
101-00000-4206   INSPECTION FEE                                     30              190                 -              (60)               -                 -               -
101-00000-4207   CEMETERY-BURIAL PERMITS                        87,768           89,170           110,000           23,205           23,167           110,000               -
101-00000-4208   BUILDING PERMITS                              264,201          278,166           255,000          100,274           57,413           300,000          45,000
101-00000-4209   ELECTRICAL PERMITS                             84,907           67,128            82,000           26,984           16,803           100,000          18,000
101-00000-4210   PLUMBING PERMITS                               26,884           26,519            31,000           15,483            6,528            45,000          14,000
101-00000-4211   HEATING PERMITS                                55,169           62,305            60,000           18,113           13,889            65,000           5,000
101-00000-4212   POLICE GUN REGISTRATION                             -                -                 -            1,400                -             2,500           2,500
101-00000-4213   RENTAL PROPERTY REGISTRATION                  123,075          117,535           120,000           40,585           27,650           120,000               -
101-00000-4221   VACANT BUILDING FEE                           112,058          108,284           100,000           21,590           22,430           100,000               -
101-00000-4224   TEMPORARY LIQUOR LICENSE                       10,000            8,050            15,000            1,325            1,750            13,000          (2,000)
                                                        $    1,223,033   $    1,238,284    $    1,245,500    $     295,094 $        215,015    $    1,328,000   $      82,500

                 Federal grants
101-00000-4300   FEDERAL GRANTS                               152,300           117,324            42,675                 -          38,940           42,675                -
                                                        $     152,300    $      117,324    $       42,675    $            -   $      38,940    $      42,675    $           -

                 State grants
101-00000-4400   STATE GRANTS                                  14,295            13,819            15,000                 -                -          15,000                -
                                                        $      14,295    $       13,819    $       15,000    $            -   $            -   $      15,000    $           -

                 State shared revenue
101-00000-4502   STATE SALES TAX CONSTITUTIONAL              2,612,928        2,667,026         2,742,356                 -                -        2,722,792         (19,564)
101-00000-4503   STATE EVIP PAYMENTS                           964,920        1,033,845         1,033,845                 -                -        1,083,651          49,806
                                                        $    3,577,848   $    3,700,871    $    3,776,201    $            -   $            - $      3,806,443   $      30,242

                 Other charges for sales and services
101-00000-4603   TAX COLLECTION FEE                            289,361          267,293          245,300            37,490                -          245,300                -
101-00000-4604   GARBAGE COLLECTION                             48,851           46,624           48,000             8,053            9,109           48,000                -
101-00000-4606   ADMINISTRATION FEES                           225,000          250,000          250,000            62,500           62,500          250,000                -
101-00000-4607   REIMBURSEMENT ELECTIONS                        13,640              329           15,500               331              123           15,500                -
101-00000-4608   INDIRECT COST ALLOCATION                    1,144,020        1,171,536          984,445           245,776          292,884          984,445                -




                                                                                                                                                                          Page 4 of 40
                 City of Muskegon
                 Annual Budget & Quarterly Budget Reforecast - General Fund


                                                                                         Original Budget                                                      Increase
                                                                                            Estimate     Actual to Date    Actual to Date 1Q Reforecast      (Decrease)
                                                       Actual FY2012    Actual FY2013        FY2014         9/30/13           9/30/12        FY2014         From Original
101-00000-4609   PROCUREMENT CARD REBATE                       37,689           54,556            54,000               -                 -       54,000                  -
101-00000-4611   SPECIAL EVENTS REIMBURSEMENT                  95,788           66,596            75,000         78,948            50,037        75,000                  -
101-00000-4612   CEMETERY SALE OF LOTS                         24,592           31,482            25,000         10,553             7,874        25,000                  -
101-00000-4614   REIMBURSEMENT LOT CLEAN UP                    43,028           32,462            35,000          4,507            10,180        35,000                  -
101-00000-4615   POLICE DEPARTMENT INCOME                      42,421           67,322            45,000         22,685            11,218        60,000            15,000
101-00000-4617   FIRE DEPARTMENT INCOME                           703            2,843             2,200            785               190         2,500               300
101-00000-4619   MISC. SALES AND SERVICES                       2,801            2,452             3,000               -             (414)        3,000                  -
101-00000-4620   FIRE PROTECTION-STATE PROP                   137,127          117,776            84,970            500                  -       84,970                  -
101-00000-4621   ZONING & ENCROACHMENT FEES                    11,855           11,164            11,000          5,220             1,445        11,000                  -
101-00000-4622   MISC. CLERK FEES                               1,365            2,827             2,800            338               831         2,800                  -
101-00000-4624   TAX ABATEMENT APPLICATION FEES                 3,439            5,904             6,000            500             2,284         6,000                  -
101-00000-4625   MISC. TREAS. FEES                             44,502           42,948            50,000          3,072             1,932        50,000                  -
101-00000-4631   REIMBURSEMENT SCHOOL OFFICER                  15,450           25,276            24,500               -            6,180        24,500                  -
101-00000-4633   OBSOLETE PROPERTY FEES                           200                -                 -            250                  -             -                 -
101-00000-4634   PASSPORTS                                      3,790            4,160             3,500            925               495         3,500                  -
101-00000-4635   START UP CHARGE/REFUSE                         9,343           10,615            10,000          1,650             2,970        10,000                  -
101-00000-4636   REFUSE BAG & BULK SALES                       28,878           23,852            23,000          6,756             7,148        23,000                  -
101-00000-4637   APPLIANCE STICKER                                232               25               300             25                  -          300                  -
101-00000-4642   LIEN LOOK UPS                                 17,180           15,700            15,000          2,770             4,230        15,000                  -
101-00000-4648   FALSE ALARM FEES/POLICE                       10,680            5,265            13,000          2,445                  -       10,000            (3,000)
101-00000-4649   CEMETERY-MISC. INCOME                         61,645           17,369            20,000          3,911             4,866        20,000                  -
101-00000-4650   SENIOR CITIZENS TRANSPORTATION                11,123            8,382                 -             50             4,125             -                  -
101-00000-4651   REIMBURSEMENT LOT MOWING                      58,740           43,648            50,000         11,699            14,434        50,000                  -
101-00000-4656   SITE PLAN REVIEW                               3,400            3,600             3,500            200               700         3,500                  -
101-00000-4657   COLUMBARIUM NICHE                                 79            1,725             1,000               -              800         1,000                  -
101-00000-4658   IMPOUND FEES                                  40,920           38,844            42,000          8,750             8,394        42,000                  -
101-00000-4660   MISC RECREATION INCOME                         6,551            6,667             6,500          2,412             1,350         6,500                  -
101-00000-4661   LEASE GREAT LAKES NAVAL MEMORIAL              15,000           15,000            15,000          5,000             3,750        15,000                  -
101-00000-4663   FLEA MARKET AT FARMERS MARKET                 28,664           30,935            35,000         14,750            15,702        35,000                  -
101-00000-4664   FARMERS MARKET INCOME                         47,805           42,599            40,000         29,608            23,932        40,000                  -
101-00000-4665   LEASE BILLBOARDS                               6,800            6,800             6,800               -                 -        6,800                  -
101-00000-4670   PICNIC SHELTER                                21,485           19,600            35,000          5,895             1,975        35,000                  -
101-00000-4671   MCGRAFT PARK                                  48,213           61,053            46,000          1,970               400        46,000                  -
101-00000-4673   RENTAL - CENTRAL DISPATCH                     43,526           44,938            45,000          8,345             8,430        45,000                  -
101-00000-4674   RENTAL - CITY HALL                             6,600           16,244            19,200          5,792             2,400        19,200                  -
101-00000-4675   RENTALS - BEACH                                9,491            2,500            10,000          2,500                  -       10,000                  -
                                                       $   2,661,976    $   2,618,909    $    2,401,515 $      596,960     $     562,473 $    2,413,815    $       12,300

                 Fines and fees
101-00000-4701   INCOME TAX-PENALTY & INTEREST               191,679          174,801          175,000           33,950           39,765        175,000                 -
101-00000-4702   DELINQUENT FEES                              24,051           30,872           40,000                -                -         40,000
101-00000-4703   INTEREST/LATE INVOICES                            -                -                -               12                -              -                 -
101-00000-4704   PENALTIES/INTEREST/FINES                      2,328            2,318            2,000              538              601          2,000                 -
101-00000-4754   TRAFFIC FINES & FEES                        105,995           77,803           90,000           15,260           25,225         70,000           (20,000)
101-00000-4755   COURT FEES                                  123,926          125,184          130,000           14,593           19,477        130,000                 -
                                                       $     447,978    $     410,978    $     437,000   $       64,353    $      85,068   $    417,000    $      (20,000)




                                                                                                                                                                      Page 5 of 40
                 City of Muskegon
                 Annual Budget & Quarterly Budget Reforecast - General Fund


                                                                                               Original Budget                                                        Increase
                                                                                                  Estimate       Actual to Date   Actual to Date   1Q Reforecast     (Decrease)
                                                             Actual FY2012    Actual FY2013        FY2014           9/30/13          9/30/12          FY2014        From Original
                 Other revenue
101-00000-4800   MISC. & SUNDRY                                     13,994            9,208            5,000               709              193            5,000                -
101-00000-4802   REIMB:DEMOS AND BOARD-UPS                           9,227           10,639           10,000             1,607            6,155            8,000           (2,000)
101-00000-4803   CDBG PROGRAM REIMBURSEMENTS                       415,322          333,929          326,288                 -           18,115          326,288                -
101-00000-4805   CONTRIBUTIONS                                       2,596            3,755           11,000             1,200              960           11,000                -
101-00000-4806   BIKE/PROPERTY AUCTIONS-POLICE                      10,598            6,058            2,000                 -              200            2,000                -
101-00000-4811   FISHERMANS LANDING REIMBURSEMENT                   16,775           17,471           16,500                 -                -           16,500                -
101-00000-4814   PROMOTIONAL PRODUCTS                                   22               25               25               109                -               25                -
101-00000-4818   RECOVERY OF BAD DEBT                                1,763            7,122            7,000               125              291            7,000                -
101-00000-4821   CONTRIBUTIONS/GRANTS                                    -            2,250           22,000                 -                -           22,000                -
101-00000-4823   CONTRIBUTIONS - DISC GOLF COURSE IMPROVE            1,280            4,480                -                 -            1,600                -                -
101-00000-4825   CONTRIBUTIONS - VETERAN'S PARK MAINT               18,502           16,155           16,500                 -                -           16,500                -
101-00000-4829   COMMUNITY FOUNDATION GRANT - MCGRAFT PARK               -            4,800                -                 -                -                -                -
101-00000-4841   GRANT: COMMUNITY FOUNDATION                        10,000           10,000           15,000            15,000                -           15,000                -
                                                             $     500,079    $     425,892    $     431,313     $      18,750    $      27,513    $     429,313    $      (2,000)

                 Interest & Operating Transfers
101-00000-4902   OP. TRANS FROM SPECIAL REVENUE                      13,828           52,995          79,249                 -            2,500           79,249                -
101-00000-4903   OP. TRANS FROM DEBT SERVICE                         50,000           50,000          50,000            12,500           12,500           50,000                -
101-00000-4904   OP. TRANS FROM CAPITAL PROJECTS                      1,125                -               -                 -                -                -                -
101-00000-4906   OP. TRANS FROM INTERNAL SERVICE FUND                     -          200,000               -                 -          200,000                -                -
101-00000-4908   OP. TRANS FROM NONEXPENDABLE                         2,226           20,653          23,000                 -            2,950           23,000                -
101-00000-4970   INTEREST INCOME                                      9,378           69,568          50,000            (1,338)           3,380           50,000                -
101-00000-4971   UNREALIZED GAIN (LOSS) ON INVESTMENT               (34,662)        (123,263)              -           (32,087)         (16,772)               -                -
101-00000-4980   SALE OF FIXED ASSETS                                     -                -           1,000                 -                -            1,000                -
                                                             $       41,895 $        269,953 $       203,249     $     (20,925) $       204,558 $        203,249    $           -

                 Total general fund revenues and other
                 sources                                     $   24,126,073   $   23,628,056   $   23,183,205    $   2,734,235    $   2,893,822    $   23,286,247   $    103,042




                                                                                                                                                                              Page 6 of 40
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                           Increase
                                                                                  Original Budget                                                         (Decrease)
                                                                                     Estimate       Actual to Date   Actual to Date   1Q Reforecast       From FY13
                                                    Actual FY2012   Actual FY2013     FY2014           9/30/13          9/30/12          FY2014           Reforecast
       I. Customer Value Added Activities

40301 Police Department
5100      SALARIES & BENEFITS                           7,570,540       7,650,897       7,844,317       1,628,190        1,708,218        7,844,317                 -
5200      SUPPLIES                                         76,955          63,751          97,280          14,443           17,162           97,280                 -
5300      CONTRACTUAL SERVICES                            875,146         893,404         818,350         196,207          230,704          818,350                 -
5400      OTHER EXPENSES                                   21,781          16,611          15,000           1,542            3,781           15,000                 -
5700      CAPITAL OUTLAYS                                   7,132          17,591          22,600             326            4,410           33,200            10,600
                                                    $   8,551,554   $   8,642,254   $   8,797,547   $   1,840,708    $   1,964,275    $   8,808,147   $        10,600
                                                    $   8,551,554   $   8,642,254   $   8,797,547   $   1,840,708    $   1,964,275    $   8,808,147   $        10,600

50336 Fire Department
5100      SALARIES & BENEFITS                           3,259,426       2,842,619       3,031,120         661,777          600,994        3,031,120                 -
5200      SUPPLIES                                         98,384         103,835          83,000          20,031           20,021           83,000                 -
5300      CONTRACTUAL SERVICES                            201,406         420,775         401,900          98,051           92,557          401,900                 -
5400      OTHER EXPENSES                                    2,182           3,514           3,850           1,750            1,676            7,000             3,150
5700      CAPITAL OUTLAYS                                  57,270          42,880          56,400           2,159            8,978           56,400                 -
                                                    $   3,618,668   $   3,413,623   $   3,576,270   $     783,768    $     724,226    $   3,579,420   $         3,150

50338 New Central Fire Station
5100      SALARIES & BENEFITS                                  -                -              -                -                -               -                     -
5200      SUPPLIES                                             -                -              -                -                -               -                     -
5300      CONTRACTUAL SERVICES                            56,009           58,416         60,000            8,931            9,506          60,000                     -
5400      OTHER EXPENSES                                       -                -              -                -                -               -                     -
5700      CAPITAL OUTLAYS                                      -                -              -                -                -               -                     -
                                                    $     56,009    $      58,416   $     60,000    $       8,931    $       9,506    $     60,000    $                -

50387 Fire Safety Inspections
5100      SALARIES & BENEFITS                             463,384         164,533         102,067               -           96,424          102,067                 -
5200      SUPPLIES                                          5,951           1,547               -             118            1,255            1,000             1,000
5300      CONTRACTUAL SERVICES                            128,447         306,646         342,400          10,918            7,368          400,000            57,600
5400      OTHER EXPENSES                                    3,973             950               -               -              941                -                 -
5700      CAPITAL OUTLAYS                                   1,708            (742)              -               -                -                -                 -
                                                    $     603,463   $     472,934 $       444,467   $      11,036    $     105,988    $     503,067   $        58,600
                                                    $   4,278,140   $   3,944,973 $     4,080,737   $     803,735    $     839,720    $   4,142,487   $        61,750



60523 General Sanitation
5100      SALARIES & BENEFITS                              30,917          19,689          14,044           4,007            4,240           14,044                    -
5200      SUPPLIES                                             16               -               -               -                -                -                    -
5300      CONTRACTUAL SERVICES                          1,530,445       1,522,242       1,679,514         133,943          236,193        1,679,514                    -
5400      OTHER EXPENSES                                        -               -               -                                                 -                    -
5700      CAPITAL OUTLAYS                                       -               -               -               -                -                -                    -
5900      OTHER FINANCING USES                            200,000         200,000         200,000          50,000           50,000          200,000                    -
                                                    $   1,761,378   $   1,741,931   $   1,893,558   $     187,950    $     290,433    $   1,893,558   $                -

60550 Stormwater Management
5100      SALARIES & BENEFITS                                  -                -              -                 -                -              -                     -
5200      SUPPLIES                                           198                -              -                 -                -              -                     -
5300      CONTRACTUAL SERVICES                            13,072           12,994         15,000                 -                -         15,000                     -
5400      OTHER EXPENSES                                       -                -              -                                                 -                     -
5700      CAPITAL OUTLAYS                                      -                -              -                 -                -              -                     -
                                                    $     13,270    $      12,994   $     15,000    $            -   $            -   $     15,000    $                -

60448 Streetlighting
                                                                                                                                                                       Page 7 of 40
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                            Increase
                                                                                      Original Budget                                                      (Decrease)
                                                                                         Estimate     Actual to Date    Actual to Date 1Q Reforecast       From FY13
                                                    Actual FY2012    Actual FY2013        FY2014         9/30/13           9/30/12        FY2014           Reforecast
5100      SALARIES & BENEFITS                                    -                -                 -               -                 -            -                    -
5200      SUPPLIES                                               -                -                 -               -                 -            -                    -
5300      CONTRACTUAL SERVICES                             560,199          655,118          650,000        108,630           110,523        650,000                    -
5400      OTHER EXPENSES                                         -                -                 -               -                 -            -                    -
5700      CAPITAL OUTLAYS                                        -                -             5,000               -                 -        5,000                    -
                                                    $      560,199   $      655,118   $      655,000 $      108,630     $     110,523 $      655,000 $                  -

60707 Senior Citizen Transit
5100      SALARIES & BENEFITS                              65,909           31,420            3,771              725          13,389          3,771                  -
5200      SUPPLIES                                              -                -                -                -               -              -                  -
5300      CONTRACTUAL SERVICES                             10,400           10,396           40,000            5,000           2,400         35,000             (5,000)
5400      OTHER EXPENSES                                        -                -                -                -               -              -                  -
5700      CAPITAL OUTLAYS                                       -                -                -                -               -              -                  -
                                                    $      76,309    $      41,816    $      43,771   $        5,725    $     15,789   $     38,771    $        (5,000)

60446 Community Event Support
5100      SALARIES & BENEFITS                              14,857           13,668           10,000            5,041           2,857         10,000                     -
5200      SUPPLIES                                             58            1,015              800               75             443            800                     -
5300      CONTRACTUAL SERVICES                              5,297            4,586           10,000            5,446             455         10,000                     -
5400      OTHER EXPENSES                                        -                -                -                -               -              -                     -
5700      CAPITAL OUTLAYS                                       -                -                -                -               -              -                     -
                                                    $      20,212    $      19,269    $      20,800   $       10,562    $      3,755   $     20,800    $                -

70751 Parks Maintenance
5100      SALARIES & BENEFITS                             353,705          342,929          386,722           76,231          75,403         386,722                    -
5200      SUPPLIES                                         65,534           54,898           89,720           23,347          19,282          89,720                    -
5300      CONTRACTUAL SERVICES                            620,372          603,317          651,937          174,748         199,397         651,937                    -
5400      OTHER EXPENSES                                      102                4                -                -               -               -                    -
5700      CAPITAL OUTLAYS                                  10,673            8,314            6,000              565               -           6,000                    -
                                                    $   1,050,386    $   1,009,462    $   1,134,379   $      274,891    $    294,082   $   1,134,379   $                -




                                                                                                                                                                        Page 8 of 40
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                           Increase
                                                                                  Original Budget                                                         (Decrease)
                                                                                     Estimate       Actual to Date   Actual to Date   1Q Reforecast       From FY13
                                                    Actual FY2012   Actual FY2013     FY2014           9/30/13          9/30/12          FY2014           Reforecast
70757 Mc Graft Park Maintenance
5100      SALARIES & BENEFITS                              6,934            3,935          8,095            2,187              465           8,095                  -
5200      SUPPLIES                                         3,479            2,851          3,250            2,004              591           3,250                  -
5300      CONTRACTUAL SERVICES                            29,358           15,456         33,850            9,835            6,839          33,650               (200)
5400      OTHER EXPENSES                                     106                -              -                -                -               -                  -
5700      CAPITAL OUTLAYS                                    106            1,220              -              180                -             200                200
                                                    $     39,982    $      23,462   $     45,195    $      14,206    $       7,895    $     45,195    $             -

70276 Cemeteries Maintenance
5100      SALARIES & BENEFITS                            106,333          89,049          80,894           17,005           22,485          80,894                     -
5200      SUPPLIES                                         6,975           5,258           6,810            2,350            1,291           6,810                     -
5300      CONTRACTUAL SERVICES                           247,644         259,567         256,806           91,622           94,729         256,806                     -
5400      OTHER EXPENSES                                       -           1,563               -                -                -               -                     -
5700      CAPITAL OUTLAYS                                  7,594           7,466           7,000                -              135           7,000                     -
                                                    $    368,546    $    362,903    $    351,510    $     110,977    $     118,640    $    351,510    $                -

70585 Parking Operations
5100      SALARIES & BENEFITS                                 830           1,076          1,200              215                -            1,200                 -
5200      SUPPLIES                                              -               -              -              150                -              200               200
5300      CONTRACTUAL SERVICES                              3,654           4,189          4,000              979              914            3,800              (200)
5400      OTHER EXPENSES                                        -               -              -                -                -                -                 -
5700      CAPITAL OUTLAYS                                       -               -              -                -                -                -                 -
                                                    $       4,484   $       5,265   $      5,200    $       1,344    $         914    $       5,200   $             -

70357 Graffiti Removal
5100      SALARIES & BENEFITS                               4,312           3,122          4,000              607              558            4,000                    -
5200      SUPPLIES                                            513              91            200                -               67              200                    -
5300      CONTRACTUAL SERVICES                                265             640          4,661              278              383            4,661                    -
5400      OTHER EXPENSES                                        -               -              -                -                -                -                    -
5700      CAPITAL OUTLAYS                                       -               -              -                -                -                -                    -
                                                    $       5,090   $       3,853   $      8,861    $         885    $       1,008    $       8,861   $                -

70863 Farmers' Market & Flea Market
5100      SALARIES & BENEFITS                              20,918          27,276          25,370           8,519            8,170           25,370                 -
5200      SUPPLIES                                          2,197           2,913           2,700               -            1,341            2,700                 -
5300      CONTRACTUAL SERVICES                             30,953          33,051          31,188          11,929           11,539           31,188                 -
5400      OTHER EXPENSES                                       45              25             100               -                -              100                 -
5700      CAPITAL OUTLAYS                                     294               -           2,000              22                -            2,000                 -
                                                    $      54,407   $      63,265   $      61,358   $      20,470    $      21,050    $      61,358   $             -
                                                    $   3,954,262   $   3,939,338   $   4,234,632   $     735,640    $     864,089    $   4,229,632   $        (5,000)




                                                                                                                                                                       Page 9 of 40
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                               Increase
                                                                                   Original Budget                                                            (Decrease)
                                                                                      Estimate         Actual to Date   Actual to Date   1Q Reforecast        From FY13
                                                    Actual FY2012    Actual FY2013     FY2014             9/30/13          9/30/12          FY2014            Reforecast
70775 General Recreation
5100      SALARIES & BENEFITS                                   -            3,062                -                -               99                -                     -
5200      SUPPLIES                                            230               96              200                -                -              200                     -
5300      CONTRACTUAL SERVICES                            108,784           92,786           95,700           38,081           38,804           95,700                     -
5400      OTHER EXPENSES                                       51                -                -                -                -                -                     -
5700      CAPITAL OUTLAYS                                       -                -                -                -                -                -                     -
                                                    $     109,065    $      95,944    $      95,900    $      38,081    $      38,903    $      95,900    $                -

80387 Environmental Services
5100      SALARIES & BENEFITS                             337,789          331,404          357,849           80,936           65,171          357,849                     -
5200      SUPPLIES                                         10,247           10,649            8,300            1,906            2,522            8,300                     -
5300      CONTRACTUAL SERVICES                            191,979          194,996          233,240           82,072           82,184          233,240                     -
5400      OTHER EXPENSES                                      228              547            2,000                -                -            2,000                     -
5700      CAPITAL OUTLAYS                                   1,422            3,897            3,500            2,486              108            3,500                     -
                                                    $     541,665    $     541,493    $     604,889    $     167,400    $     149,985    $     604,889    $                -
                                                    $     650,729    $     637,437    $     700,789    $     205,481    $     188,888    $     700,789    $                -

10875 Other - Contributions to Outside Agencies
        MUSKEGON AREA TRANSIT (MATS)                       80,164           80,164           77,460           32,432           11,392           77,460                  -
        NEIGHBORHOOD ASSOCIATION GRANTS                    17,738           17,738           21,000                -                -           21,000                  -
        MUSKEGON AREA FIRST                                45,566           45,566           45,660                -                -           45,660                  -
        VETERANS MEMORIAL DAY COSTS                             -            4,463            7,000                -                -            7,000                  -
        WEST MI ECONOMIC DEVELOPMENT PARTNERSHIP                -                -            3,000                -                -            3,000                  -
        DOWNTOWN MUSKEGON NOW                                   -           42,995           79,249                -                -           79,249                  -
        LAKESIDE BUSINESS DISTRICT                          2,500            2,500            2,500                -                -            2,500                  -
        211 SERVICE                                         2,500            2,500            2,500                -                -            2,500                  -
        MLK DIVERSITY PROGRAM                               1,000            1,000            1,000                -                -            1,000                  -
        MUSKEGON AREA LABOR MANAGEMENT (MALMC)                  -            1,000            1,000                -                -            1,000                  -
        SUPPLEMENTAL MERS CONTRIBUTION                          -                -                -                -                -          300,000            300,000
       Contributions To Outside Agencies            $     149,468    $     197,926    $     240,369    $      32,432    $      11,392    $     540,369    $       300,000
                                                    $     149,468    $     197,926    $     240,369    $      32,432    $      11,392    $     540,369    $       300,000



       Total Customer Value Added Activities        $   17,584,153   $   17,361,928   $   18,054,074   $   3,617,996    $   3,868,364    $   18,421,424   $       367,350
       As a Percent of Total General Fund
       Expenditures                                         74.5%            76.5%            75.9%            72.1%            73.3%            76.3%




                                                                                                                                                                      Page 10 of 40
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                           Increase
                                                                                  Original Budget                                                         (Decrease)
                                                                                     Estimate       Actual to Date   Actual to Date   1Q Reforecast       From FY13
                                                    Actual FY2012   Actual FY2013     FY2014           9/30/13          9/30/12          FY2014           Reforecast
       II. Business Value Added Activities

10101 City Commission
5100      SALARIES & BENEFITS                             67,018           66,891         66,778           14,291           13,713          66,778                     -
5200      SUPPLIES                                         6,880            8,515         11,000            8,517            8,386          11,000                     -
5300      CONTRACTUAL SERVICES                             3,201           14,961         14,500            9,067              291          14,500                     -
5400      OTHER EXPENSES                                   1,436              847          2,000              705               90           2,000                     -
5700      CAPITAL OUTLAYS                                  4,371            2,295          1,500              240            1,546           1,500                     -
                                                    $     82,906    $      93,509   $     95,778    $      32,820    $      24,026    $     95,778    $                -

10102 City Promotions & Public Relations
5100      SALARIES & BENEFITS                                   -               -              -                -                -                -                    -
5200      SUPPLIES                                          1,067             474            350              198               92              350                    -
5300      CONTRACTUAL SERVICES                              6,146           9,357          9,000              861              120            9,000                    -
5400      OTHER EXPENSES                                        -               -              -                -                -                -                    -
5700      CAPITAL OUTLAYS                                       -               -              -                -                -                -                    -
                                                    $       7,214   $       9,831   $      9,350    $       1,059    $         212    $       9,350   $                -

10172 City Manager
5100      SALARIES & BENEFITS                            261,589         263,747         261,736           54,061           54,290         261,736                     -
5200      SUPPLIES                                         1,297             538           1,400            1,096               67           1,400                     -
5300      CONTRACTUAL SERVICES                             7,032           4,196           7,500              660            2,841           7,500                     -
5400      OTHER EXPENSES                                   2,225             336               -              927              (26)              -                     -
5700      CAPITAL OUTLAYS                                  1,166           1,092           1,000                -                -           1,000                     -
                                                    $    273,309    $    269,909    $    271,636    $      56,744    $      57,172 $       271,636    $                -

10145 City Attorney
5100      SALARIES & BENEFITS                                  -               -               -                -                -               -                     -
5200      SUPPLIES                                             -             830           2,000              850              830           2,000                     -
5300      CONTRACTUAL SERVICES                           354,865         320,106         340,000           77,204           86,195         340,000                     -
5400      OTHER EXPENSES                                       -               -               -                -                -               -                     -
5700      CAPITAL OUTLAYS                                      -               -               -                -                -               -                     -
                                                    $    354,865    $    320,936    $    342,000    $      78,054    $      87,025    $    342,000    $                -
                                                    $    718,294    $    694,185    $    718,764    $     168,677    $     168,435    $    718,764    $                -

20228 Affirmative Action
5100      SALARIES & BENEFITS                             80,618           79,907         79,488           17,910           17,033          79,488                     -
5200      SUPPLIES                                           264              239            750               35               64             750                     -
5300      CONTRACTUAL SERVICES                             1,785            1,051          1,627              150              217           1,627                     -
5400      OTHER EXPENSES                                     319              151            800                5               17             800                     -
5700      CAPITAL OUTLAYS                                      -            1,092          2,350            1,627                -           2,350                     -
                                                    $     82,987    $      82,440   $     85,015    $      19,727    $      17,331    $     85,015    $                -




                                                                                                                                                                  Page 11 of 40
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                           Increase
                                                                                  Original Budget                                                         (Decrease)
                                                                                     Estimate       Actual to Date   Actual to Date   1Q Reforecast       From FY13
                                                    Actual FY2012   Actual FY2013     FY2014           9/30/13          9/30/12          FY2014           Reforecast
20215 City Clerk & Elections
5100      SALARIES & BENEFITS                            243,389         266,352         266,716           60,888           61,527         266,716                     -
5200      SUPPLIES                                        25,026          32,880          35,040            7,933           12,208          35,040                     -
5300      CONTRACTUAL SERVICES                            11,797          29,335          31,684           10,108            7,910          31,684                     -
5400      OTHER EXPENSES                                   2,367           2,497           2,500              106              594           2,500                     -
5700      CAPITAL OUTLAYS                                  6,380           6,189           1,000                -                -           1,000                     -
                                                    $    288,959    $    337,253   $     336,940    $      79,035    $      82,239    $    336,940    $                -

20220 Civil Service
5100      SALARIES & BENEFITS                              4,245           3,429               -                -            3,429               -                     -
5200      SUPPLIES                                         3,810               -             500                -                -             500                     -
5300      CONTRACTUAL SERVICES                            88,071          82,446          85,050           19,898           19,477          85,050                     -
5400      OTHER EXPENSES                                   2,418           2,563           2,800                -                -           2,800                     -
5700      CAPITAL OUTLAYS                                      -               -               -                -                -               -                     -
                                                    $     98,543    $     88,438   $      88,350    $      19,898    $      22,906    $     88,350    $                -
                                                    $    470,489    $    508,131   $     510,305    $     118,660    $     122,476    $    510,305    $                -

30202 Finance Administration
5100      SALARIES & BENEFITS                            278,978         187,092         193,021           38,250           39,731         193,021                     -
5200      SUPPLIES                                         2,933           2,961           2,970              460              640           2,970                     -
5300      CONTRACTUAL SERVICES                           133,853         172,202         174,300           31,646           36,530         174,300                     -
5400      OTHER EXPENSES                                   1,505           1,166             500              226              210             500                     -
5700      CAPITAL OUTLAYS                                  3,834             725             500                -                -             500                     -
                                                    $    421,103    $    364,146   $     371,291    $      70,582    $      77,111    $    371,291    $                -

30209 Assessing Services
5100      SALARIES & BENEFITS                              3,126           3,312           4,500              494              405           4,500                     -
5200      SUPPLIES                                             -               -               -                -                -               -                     -
5300      CONTRACTUAL SERVICES                           422,034         326,878         321,700           74,580           88,592         321,700                     -
5400      OTHER EXPENSES                                       -               -               -                -                -               -                     -
5700      CAPITAL OUTLAYS                                      -               -               -                -                -               -                     -
                                                    $    425,160    $    330,190   $     326,200    $      75,074    $      88,997    $    326,200    $                -

30805 Arena Administration
5100      SALARIES & BENEFITS                                  -               -               -                -                -               -                     -
5200      SUPPLIES                                             -               -               -                -                -               -                     -
5300      CONTRACTUAL SERVICES                           238,492         237,423         238,000          235,000          235,000         238,000                     -
5400      OTHER EXPENSES                                       -               -               -                -                -               -                     -
5700      CAPITAL OUTLAYS                                  1,599           1,538           1,550                -                -           1,550                     -
                                                    $    240,091    $    238,961   $     239,550    $     235,000    $     235,000    $    239,550    $                -




                                                                                                                                                                  Page 12 of 40
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                           Increase
                                                                                  Original Budget                                                         (Decrease)
                                                                                     Estimate       Actual to Date   Actual to Date   1Q Reforecast       From FY13
                                                    Actual FY2012   Actual FY2013     FY2014           9/30/13          9/30/12          FY2014           Reforecast
30205 Income Tax Administration
5100      SALARIES & BENEFITS                            349,617         310,903         337,493           68,983           65,706         337,493                     -
5200      SUPPLIES                                        11,035           7,917          10,760            1,258              698          10,760                     -
5300      CONTRACTUAL SERVICES                            66,871          68,153          70,550            6,686            7,987          70,550                     -
5400      OTHER EXPENSES                                     792             318           1,000                -                -           1,000                     -
5700      CAPITAL OUTLAYS                                  4,081           1,475           2,500                -                -           2,500                     -
                                                    $    432,397    $    388,766    $    422,303    $      76,927    $      74,391    $    422,303    $                -

30253 City Treasurer
5100      SALARIES & BENEFITS                            318,736         301,576         298,022           63,328           67,018         298,022                     -
5200      SUPPLIES                                        65,720          69,608          66,000           13,311           13,099          66,000                     -
5300      CONTRACTUAL SERVICES                           126,643         111,392         109,000           19,667           25,149         109,000                     -
5400      OTHER EXPENSES                                     343             882             800                -                -             800                     -
5700      CAPITAL OUTLAYS                                  5,710              51           1,000                -               51           1,000                     -
                                                    $    517,152    $    483,509    $    474,822    $      96,306    $     105,317    $    474,822    $                -

30248 Information Systems Administration
5100      SALARIES & BENEFITS                             301,869         308,966         314,865          64,436           62,693          314,865                    -
5200      SUPPLIES                                            481             159           2,156               -               41            2,156                    -
5300      CONTRACTUAL SERVICES                             31,224          25,747          44,284          20,468            2,671           44,284                    -
5400      OTHER EXPENSES                                    4,114           6,947          12,000               -              106           12,000                    -
5700      CAPITAL OUTLAYS                                  33,513          49,526          13,731           9,737           17,924           13,731                    -
                                                    $     371,201   $     391,345   $     387,036   $      94,641    $      83,435    $     387,036   $                -
                                                    $   2,407,105   $   2,196,917   $   2,221,202   $     648,530    $     664,251    $   2,221,202   $                -

60265 City Hall Maintenance
5100      SALARIES & BENEFITS                             39,062          41,519          34,267            8,768            7,525          34,267                     -
5200      SUPPLIES                                        10,126          11,581          13,275            1,400            2,492          13,275                     -
5300      CONTRACTUAL SERVICES                           178,543         183,702         230,600           27,555           38,973         230,600                     -
5400      OTHER EXPENSES                                     191               -             500                -                -             500                     -
5700      CAPITAL OUTLAYS                                  7,164           7,495           6,900              875            3,192           6,900                     -
                                                    $    235,086    $    244,297    $    285,542    $      38,598    $      52,182    $    285,542    $                -
                                                    $    235,086    $    244,297    $    285,542    $      38,598    $      52,182    $    285,542    $                -




                                                                                                                                                                  Page 13 of 40
       Annual Budget & Quarterly Budget Reforecast - General Fund
       General Fund Expenditure Summary By Function

                                                                                                                                                            Increase
                                                                                   Original Budget                                                         (Decrease)
                                                                                      Estimate       Actual to Date   Actual to Date   1Q Reforecast       From FY13
                                                     Actual FY2012   Actual FY2013     FY2014           9/30/13          9/30/12          FY2014           Reforecast
80400 Planning, Zoning and Economic Development
5100      SALARIES & BENEFITS                             267,122         276,971         283,841           58,545           57,555         283,841                     -
5200      SUPPLIES                                          2,759           3,228           4,000              724              403           4,000                     -
5300      CONTRACTUAL SERVICES                             19,914          15,171          61,770            7,554            4,040          61,770                     -
5400      OTHER EXPENSES                                    1,272           2,418           3,000              783              675           3,000                     -
5700      CAPITAL OUTLAYS                                   1,848           2,434           2,500            1,278            1,233           2,500                     -
                                                     $    292,915    $    300,222    $    355,111    $      68,884    $      63,906    $    355,111    $                -
                                                     $    292,915    $    300,222    $    355,111    $      68,884    $      63,906    $    355,111    $                -

       Total Business Value Added Activities         $   4,123,889   $   3,943,752   $   4,090,924   $   1,043,349    $   1,071,250    $   4,090,924   $                -
       As a Percent of Total General Fund
       Expenditures                                          17.5%           17.4%          17.2%            20.8%            20.3%            16.9%

       III. Fixed Budget Items

30999 Transfers To Other Funds
         MAJOR STREET FUND                                      -         250,000               -                -                -               -                     -
         LOCAL STREET FUND                                280,000         280,000         540,000          135,000          110,000         540,000                     -
         ENGINEERING                                       75,000               -               -                -                -               -                     -
         SIDEWALK                                               -               -               -                -                -               -                     -
         PUBLIC IMPROVEMENT FIRE EQUIPMENT RESERVE              -               -               -                -                -               -                     -
         ARENA MAINTENANCE                                      -               -               -                -                -               -                     -
         STATE GRANTS                                           -               -               -                -                -               -                     -
         LDFA DEBT SERVICE FUND (SMARTZONE)               100,000         160,000         160,000           40,000                -         160,000                     -
         GENERAL INSURANCE                                 28,046          28,046          28,046            7,011            7,011          28,046                     -
                                                     $    483,046    $    718,046    $    728,046    $     182,011    $     117,011    $    728,046    $                -

30851 General Insurance                                   257,320         233,873         251,656                 -                -        251,656                     -
30906 Debt Retirement                                     281,954         279,678         280,000          173,473          174,873         280,000                     -
10891 Contingency and Bad Debt Expense                    513,590           65,933        250,000              416            2,575         250,000                     -




                                                                                                                                                                   Page 14 of 40
         Annual Budget & Quarterly Budget Reforecast - General Fund
         General Fund Expenditure Summary By Function

                                                                                                                                                                  Increase
                                                                                      Original Budget                                                            (Decrease)
                                                                                         Estimate         Actual to Date   Actual to Date   1Q Reforecast        From FY13
                                                       Actual FY2012    Actual FY2013     FY2014             9/30/13          9/30/12          FY2014            Reforecast
90000 Major Capital Improvements                             373,495          105,683          121,000                 -          42,131          121,000
 91112    CHARGEPOINT CAR CHARGING                             5,037                -                -                 -               -                -                     -
 91301    MCGRAFT PARK IMPROVEMENTS                                -                -           22,000                 -               -           22,000                     -
 91302    VETERAN'S PARK UPGRADES                                  -                -           12,000                 -               -           12,000                     -
 91303    PARKS IMPROVEMENTS: PM & BEUKEMA                         -                -           20,000                 -               -           20,000                     -
 91304    BOARDWALK REPAIRS                                        -                -           25,000                 -               -           25,000                     -
 91116    ADA PROJECT 2011-2012                                1,432            5,748           20,000                 -               -           20,000                     -
 91118    MCGRAFT PARK ROOF & RESURFACE TENNIS COU             2,087                -                -                 -               -                -                     -
 91119    CITY HALL TUCK POINTING & ROOF OVER PD              15,489           38,021                -                 -          38,021                -                     -
 91120    VOIP PHONE SYSTEM                                   50,363           21,380           22,000                 -               -           22,000                     -
 91125    BS&A FINANCIAL MANAGEMENT SOFTWARE                 154,646            2,105                -                 -               5                -                     -
 91129    JEFFERSON & APPLE CITY HALL PARKING LOT              6,196           28,056                -                 -           3,604                -                     -
 91206    CITY HALL HVAC CLEANING                                  -            9,880                -                 -               -                -                     -
 91305    CITY HALL WINDOWS                                        -                -                -                 -               -                -                     -
 91130    CITY HALL TUCK POINTING/WINDOWS                      1,817                -                -                 -               -                -                     -
 99012    GIS TRAINING                                         4,169                -                -                 -               -                -                     -
 99148    JAG GRANT                                          106,135              493                -                 -             501                -                     -
 99152    DOJ JAG GRANT MUSKEGON HEIGHTS                      26,126                -                -                 -               -                -                     -
         Total Fixed-Budget Items                      $    1,909,406   $    1,403,213   $    1,630,702   $     355,900    $     336,590    $    1,630,702   $                -
         As a Percent of Total General Fund
         Expenditures                                            8.1%             6.2%             6.9%             7.1%             6.4%             6.8%



          Total General Fund                           $   23,617,448   $   22,708,893   $   23,775,700   $   5,017,245    $   5,276,204    $   24,143,050   $       367,350




         Recap: Total General Fund By Line Item Expenditure Classification
5100       Salaries & Benefits                         $   14,451,224   $   13,635,344   $   14,010,176   $   2,935,394    $   3,049,098    $   14,010,176   $             -
5200       Operating Supplies                                 402,136          385,834          442,461         100,206          102,995           443,661             1,200
5300       Contractual Services                             6,710,688        7,122,498        7,560,136       1,550,206        1,691,880         7,912,336           352,200
5400       Other Expenses                                     559,041          107,272          296,850           6,460           10,639           300,000             3,150
5700       Capital Outlays                                    529,359          260,221          258,031          19,495           79,708           268,831            10,800
5900       All Other Financing Uses                           965,000        1,197,724        1,208,046         405,484          341,884         1,208,046                 -
          Total General Fund                           $   23,617,448   $   22,708,893   $   23,775,700   $   5,017,245    $   5,276,204    $   24,143,050   $       367,350




                                                                                                                                                                         Page 15 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                           Original Budget           Actual to Date           Actual to Date           1Q Reforecast       Increase (Decrease)
                                              Actual 2012           Actual 2013                                                                                                                                                Comments
                                                                                          Estimate FY2014               9/30/13                  9/30/12                  FY2014            From FY14 Original

202     Major Streets and State Trunklines Fund
        Available Fund Balance - BOY      $         566,001     $       2,507,008     $         1,365,652        $        2,153,684       $        2,507,008       $        2,153,684      $         788,032


        Means of Financing
         Special assessments              $         167,342     $         125,674     $           120,000        $                    -   $                    -   $          120,000      $                 -
         Federal & state grants                   1,377,820               796,438               1,005,000                             -                        -            1,005,000                        -
         State shared revenue                     2,537,508             2,564,176               2,682,945                   307,663                  270,239                2,682,945                        -
         Interest income                             34,829                24,246                   25,000                       681                    2,017                  25,000                        -
         Operating transfers in                                           250,000                            -                        -                        -                       -                     -
         Other                                    2,099,396                35,793                   20,000                    36,372                    3,496                  20,000                        -
                                          $       6,216,895     $       3,796,327     $         3,852,945        $          344,716       $          275,752       $        3,852,945      $                 -


60900   Operating Expenditures
5100      Salaries & Benefits             $         518,030     $         548,724     $           696,909        $          100,176       $            88,607      $          696,909      $                 -
5200      Operating Supplies                        241,072               173,777                 259,200                     22,872                   11,853                 259,200                        -
5300      Contractual Services                      821,383               972,191                 972,415                   203,462                  188,384                  972,415                        -
5400      Other Expenses                             11,295                22,340                      500                            -                        -                  500                        -
5700      Capital Outlays                                                         -                          -                        -                        -                       -                     -
5900      Other Financing Uses                       25,330               232,791                 231,703                   207,796                  205,462                  231,703                        -   Debt service on 2011 MTF bonds


                                          $       1,617,110     $       1,949,823     $         2,160,727        $          534,306       $          494,306       $        2,160,727      $                 -



90000   Project Expenditures
5200      Operating Supplies              $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                    2,658,778             2,199,828               2,755,000                   614,407                    98,730               2,755,000                        -

5700      Capital Outlays                                   -                     -                          -                        -                        -                       -                     -

                                          $       2,658,778     $       2,199,828     $         2,755,000        $          614,407       $            98,730      $        2,755,000      $                 -
                                          $       4,275,888     $       4,149,651     $         4,915,727        $        1,148,713       $          593,036       $        4,915,727      $                 -


        Available Fund Balance - EOY      $       2,507,008     $       2,153,684     $           302,870        $        1,349,687       $        2,189,724       $        1,090,902      $         788,032




                                                                                                                                                                                                                                     Page 16 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                           Original Budget           Actual to Date           Actual to Date            1Q Reforecast       Increase (Decrease)
                                              Actual 2012           Actual 2013                                                                                                                                                Comments
                                                                                          Estimate FY2014               9/30/13                  9/30/12                   FY2014            From FY14 Original



203     Local Streets Fund
        Available Fund Balance - BOY      $         663,340     $         826,851     $           161,357        $          422,159       $          826,851        $          422,159      $         260,802


        Means of Financing
         Special assessments              $         109,166     $         127,402     $             90,000       $                    -   $                     -   $           90,000      $                 -
         Federal & state grants                             -                     -                          -                        -                         -               32,000                 32,000     CDBG Contribution
         Metro act fees                             140,850               143,669                 140,000                             -                         -              140,000                        -
         State shared revenue                       639,476               644,593                 640,698                     65,650                   58,816                  640,698                        -
         Interest income                             27,090                18,057                   20,000                       392                    1,443                   20,000                        -
         Operating transfers in                     480,000               680,000                 740,000                   185,000                  320,000                   740,000                        -   From General Fund

         Other                                         2,410                 5,899                  15,000                     5,609                      581                   15,000                        -

                                          $       1,398,992     $       1,619,620     $         1,645,698        $          256,651       $          380,840        $        1,677,698      $          32,000


60900   Operating Expenditures
5100      Salaries & Benefits             $         457,536     $         417,786     $           464,049        $            71,005      $            96,081       $          464,049      $                 -
5200      Operating Supplies                         64,067               114,772                 140,000                     10,877                   19,986                  140,000                        -
5300      Contractual Services                      616,506               591,674                 820,000                   118,451                  139,920                   820,000                        -
5400      Other Expenses                               4,046                  (140)                    500                            -                        13                  500                        -
5700      Capital Outlays                                   -                     -                          -                        -                         -                       -                     -
5900      Other Financing Uses                              -                     -                          -                        -                         -                       -                     -
                                          $       1,142,155     $       1,124,092     $         1,424,549        $          200,333       $          256,000        $        1,424,549      $                 -


90000   Project Expenditures
5200      Operating Supplies              $                 -   $                 -   $                      -   $                    -   $                     -   $                   -   $                 -
5300      Contractual Services                       93,326               900,220                 350,000                      8,728                   53,594                  350,000                        -

                                          $          93,326     $         900,220     $           350,000        $             8,728      $            53,594       $          350,000      $                 -

                                          $       1,235,481     $       2,024,312     $         1,774,549        $          209,061       $          309,594        $        1,774,549      $                 -


        Available Fund Balance - EOY      $         826,851     $         422,159     $             32,506       $          469,749       $          898,097        $          325,308      $         292,802




                                                                                                                                                                                                                                      Page 17 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                    Original Budget           Actual to Date           Actual to Date           1Q Reforecast       Increase (Decrease)
                                                       Actual 2012           Actual 2013                                                                                                                                  Comments
                                                                                                   Estimate FY2014               9/30/13                  9/30/12                  FY2014            From FY14 Original



257     Budget Stabilization Fund
        Available Fund Balance - BOY               $       1,500,000     $       1,500,000     $         1,700,000        $        1,700,000       $        1,500,000       $        1,700,000      $                 -


        Means of Financing
         Special assessments                       $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
         Federal & state grants                                      -                     -                          -                        -                        -                       -                     -
         State shared revenue                                        -                     -                          -                        -                        -                       -                     -
         Charges for services                                        -                     -                          -                        -                        -                       -                     -
         Interest income                                             -                     -                          -                        -                        -                       -                     -
         Operating transfers in - General Fund                       -                     -                          -                        -                        -                       -                     -
         Operating transfers in - TIFA Fund                          -                     -                          -                        -                        -                       -                     -
         Operating transfers in - Insurance Fund                     -             200,000                            -                        -              200,000                           -                     -
         Other                                                       -                     -                          -                        -                        -                       -                     -

                                                   $                 -   $         200,000     $                      -   $                    -   $          200,000       $                   -   $                 -


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5200      Operating Supplies                                         -                     -                          -                        -                        -                       -                     -
5300      Contractual Services                                       -                     -                          -                        -                        -                       -                     -
5400      Other Expenses                                             -                     -                          -                        -                        -                       -                     -
5700      Capital Outlays                                            -                     -                          -                        -                        -                       -                     -
5900      Other Financing Uses                                       -                     -                          -                        -                        -                       -                     -

                                                   $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -



90000   Project Expenditures
5200      Operating Supplies                       $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                       -                     -                          -                        -                        -                       -                     -
                                                   $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
                                                   $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -


        Available Fund Balance - EOY               $       1,500,000     $       1,700,000     $         1,700,000        $        1,700,000       $        1,700,000       $        1,700,000      $                 -




                                                                                                                                                                                                                                Page 18 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                        Original Budget           Actual to Date            Actual to Date            1Q Reforecast        Increase (Decrease)
                                                       Actual 2012             Actual 2013                                                                                                                                                     Comments
                                                                                                       Estimate FY2014               9/30/13                   9/30/12                   FY2014             From FY14 Original



264     Criminal Forfeitures Fund
        Available Fund Balance - BOY               $         140,828       $         149,174       $           164,719        $          172,578        $          149,174        $          172,578       $            7,859


        Means of Financing
         Special assessments                       $                   -   $                   -   $                      -   $                     -   $                     -   $                    -   $                 -
         Federal & state grants                                        -                       -                          -                         -                         -                        -                     -
         State shared revenue                                          -                       -                          -                         -                         -                        -                     -
         Charges for services                                          -                       -                          -                         -                         -                        -                     -
         Interest income                                        1,136                        840                    700                       144                       252                      700                         -
         Operating transfers in - General Fund                         -                       -                          -                         -                         -                        -                     -
         Operating transfers in - TIFA Fund                            -                       -                          -                         -                         -                        -                     -
         Operating transfers in - Insurance Fund                       -                       -                          -                         -                         -                        -                     -
         Other                                                11,422                  24,915                     18,000                     2,447                    14,007                   18,000                         -
                                                   $          12,558       $          25,755       $             18,700       $             2,591       $            14,259       $           18,700       $                 -


70805   Operating Expenditures
5100      Salaries & Benefits                      $                   -   $                   -   $                      -   $                     -   $                     -   $                    -   $                 -
5200      Operating Supplies                                           -                       -                          -                         -                         -                        -                     -
5300      Contractual Services                                  3,933                   2,286                     5,000                             -                         8                7,500                    2,500    Records area security improvements
5400      Other Expenses                                               -                       -                          -                         -                         -                        -                     -
5700      Capital Outlays                                            279                     65                           -                         -                         -                        -                     -
5900      Other Financing Uses                                         -                       -                          -                         -                         -                7,000                    7,000    Transfer to Equipment - grant match
                                                   $            4,212      $            2,351      $              5,000       $                     -   $                     8   $           14,500       $            9,500


90000   Project Expenditures
5200      Operating Supplies                       $                   -   $                   -   $                      -   $                     -   $                     -   $                    -   $                 -
5300      Contractual Services                                         -                       -                     30                            30                        30                       30                     -
                                                   $                   -   $                   -   $                 30       $                    30   $                    30   $                   30   $                 -
                                                   $            4,212      $            2,351      $              5,030       $                    30   $                    38   $           14,530       $            9,500


        Available Fund Balance - EOY               $         149,174       $         172,578       $           178,389        $          175,139        $          163,395        $          176,748       $           (1,641)




                                                                                                                                                                                                                                                      Page 19 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                       Original Budget           Actual to Date            Actual to Date           1Q Reforecast        Increase (Decrease)
                                                       Actual 2012             Actual 2013                                                                                                                                     Comments
                                                                                                      Estimate FY2014               9/30/13                   9/30/12                  FY2014             From FY14 Original



285     Tree Replacement Fund
        Available Fund Balance - BOY               $            5,119      $            4,999     $              1,049       $             1,479       $             4,999      $            1,479       $              430


        Means of Financing
         Special assessments                       $                   -   $                  -   $                      -   $                     -   $                    -   $                    -   $                 -
         Federal & state grants                                 2,000                   5,000                            -                         -                        -                        -                     -
         State shared revenue                                          -                      -                          -                         -                        -                        -                     -
         Charges for services                                          -                      -                          -                         -                        -                        -                     -
         Interest income                                              37                     14                     50                             1                        8                       50                     -
         Operating transfers in - General Fund                         -                      -                          -                         -                        -                        -                     -
         Operating transfers in - TIFA Fund                            -                      -                          -                         -                        -                        -                     -
         Operating transfers in - Insurance Fund                       -                      -                          -                         -                        -                        -                     -
         Other                                                       200                2,496                    1,500                             -                        -                1,500                         -
                                                   $            2,237      $            7,510     $              1,550       $                    1    $                    8   $            1,550       $                 -


70805   Operating Expenditures
5100      Salaries & Benefits                      $                   -   $            3,659     $                      -   $                     -   $                    -   $                    -   $                 -
5200      Operating Supplies                                    2,357                   5,350                    1,000                            96                        -                1,000                         -
5300      Contractual Services                                         -                2,021                            -                         -                        -                        -                     -
5400      Other Expenses                                               -                      -                          -                         -                        -                        -                     -
5700      Capital Outlays                                              -                      -                          -                         -                        -                        -                     -
5900      Other Financing Uses                                         -                      -                          -                         -                        -                        -                     -
                                                   $            2,357      $          11,030      $              1,000       $                    96   $                    -   $            1,000       $                 -


90000   Project Expenditures
5200      Operating Supplies                       $                   -   $                  -   $                      -   $                     -   $                    -   $                    -   $                 -
5300      Contractual Services                                         -                      -                          -                         -                        -                        -                     -
                                                   $                   -   $                  -   $                      -   $                     -   $                    -   $                    -   $                 -
                                                   $            2,357      $          11,030      $              1,000       $                    96   $                    -   $            1,000       $                 -


        Available Fund Balance - EOY               $            4,999      $            1,479     $              1,599       $             1,384       $             5,007      $            2,029       $              430




                                                                                                                                                                                                                                     Page 20 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                        Original Budget           Actual to Date            Actual to Date           1Q Reforecast       Increase (Decrease)
                                                       Actual 2012             Actual 2013                                                                                                                                     Comments
                                                                                                       Estimate FY2014               9/30/13                   9/30/12                  FY2014            From FY14 Original



295     Brownfield Redevelopment Authority (Betten Project)
        Available Fund Balance - BOY               $          65,349       $      (1,503,400) $              (1,513,615) $            (1,409,027) $             (1,503,400) $            (1,409,027) $             104,588


        Means of Financing
         Property taxes                            $         142,429       $         156,765       $           127,690        $                     -   $                    -   $          127,690      $                 -
         Federal & state grants                                        -                       -                          -                         -                        -                       -                     -
         State shared revenue                                          -                       -                          -                         -                        -                       -                     -
         Charges for services                                          -                       -                          -                         -                        -                       -                     -
         Interest income                                             671                     716                    600                            89                   225                     600                        -
         Operating transfers in - General Fund                         -                       -                          -                         -                        -                       -                     -
         Operating transfers in - TIFA Fund                            -                       -                          -                         -                        -                       -                     -
         Operating transfers in - Insurance Fund                       -                       -                          -                         -                        -                       -                     -
         Other                                                         -                       -                          -                         -                        -                       -                     -
                                                   $         143,100       $         157,481       $           128,290        $                    89   $               225      $          128,290      $                 -


70805   Operating Expenditures
5100      Salaries & Benefits                      $                   -   $                   -   $                      -   $                     -   $                    -   $                   -   $                 -
5200      Operating Supplies                                           -                       -                          -                         -                        -                       -                     -
5300      Contractual Services                             1,698,021                           -                          -                         -                        -                       -                     -
5400      Other Expenses                                               -                       -                          -                         -                        -                       -                     -
5700      Capital Outlays                                              -                       -                          -                         -                        -                       -                     -
5900      Other Financing Uses                                13,828                  63,108                   157,580                     25,277                    29,475                 157,580                        -
                                                   $       1,711,849       $          63,108       $           157,580        $            25,277       $            29,475      $          157,580      $                 -


90000   Project Expenditures
5200      Operating Supplies                       $                   -   $                   -   $                      -   $                     -   $                    -   $                   -   $                 -
5300      Contractual Services                                         -                       -                          -                         -                        -                       -                     -
                                                   $                   -   $                   -   $                      -   $                     -   $                    -   $                   -   $                 -
                                                   $       1,711,849       $          63,108       $           157,580        $            25,277       $            29,475      $          157,580      $                 -


        Available Fund Balance - EOY               $      (1,503,400) $           (1,409,027) $              (1,542,905) $            (1,434,215) $             (1,532,650) $            (1,438,317) $             104,588




                                                                                                                                                                                                                                     Page 21 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                    Original Budget           Actual to Date           Actual to Date           1Q Reforecast       Increase (Decrease)
                                                       Actual 2012           Actual 2013                                                                                                                                  Comments
                                                                                                   Estimate FY2014               9/30/13                  9/30/12                  FY2014            From FY14 Original



296     Brownfield Redevelopment Authority (Mall Area Project)
        Available Fund Balance - BOY               $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -


        Means of Financing
         Property taxes                            $                 -   $          42,995     $             79,249       $                    -   $                    -   $           79,249      $                 -
         Federal & state grants                                      -                     -                          -                        -                        -                       -                     -
         State shared revenue                                        -                     -                          -                        -                        -                       -                     -
         Charges for services                                        -                     -                          -                        -                        -                       -                     -
         Interest income                                             -                     -                          -                        -                        -                       -                     -
         Operating transfers in - General Fund                       -                     -                          -                        -                        -                       -                     -
         Operating transfers in - TIFA Fund                          -                     -                          -                        -                        -                       -                     -
         Operating transfers in - Insurance Fund                     -                     -                          -                        -                        -                       -                     -
         Other                                                       -                     -                          -                        -                        -                       -                     -
                                                   $                 -   $          42,995     $             79,249       $                    -   $                    -   $           79,249      $                 -


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5200      Operating Supplies                                         -                     -                          -                        -                        -                       -                     -
5300      Contractual Services                                       -                     -                          -                        -                        -                       -                     -
5400      Other Expenses                                             -                     -                          -                        -                        -                       -                     -
5700      Capital Outlays                                            -                     -                          -                        -                        -                       -                     -
5900      Other Financing Uses                                       -              42,995                   79,249                            -                        -               79,249                        -
                                                   $                 -   $          42,995     $             79,249       $                    -   $                    -   $           79,249      $                 -


90000   Project Expenditures
5200      Operating Supplies                       $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                       -                     -                          -                        -                        -                       -                     -
                                                   $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
                                                   $                 -   $          42,995     $             79,249       $                    -   $                    -   $           79,249      $                 -


        Available Fund Balance - EOY               $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -




                                                                                                                                                                                                                                Page 22 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                      Original Budget           Actual to Date            Actual to Date            1Q Reforecast       Increase (Decrease)
                                                     Actual 2012             Actual 2013                                                                                                                                                  Comments
                                                                                                     Estimate FY2014               9/30/13                   9/30/12                   FY2014            From FY14 Original

290     Local Development Finance Authority III Fund - Edison Landing (Smartzone)
        Available Fund Balance - BOY             $          21,348       $          96,745       $             94,556       $            30,266       $            96,745       $           30,266      $         (64,290)


        Means of Financing
         Property taxes                          $          83,420       $          85,627       $           137,713        $                     -   $                     -   $          137,713      $                 -
         Federal & state grants                                      -                       -                          -                         -                         -                       -                     -
         State shared revenue                                        -                       -                          -                         -                         -                       -                     -
         Charges for services                                        -                       -                          -                         -                         -                       -                     -
         Interest income                                      3,569                        150                    150                            34                        79                  150                        -
         Operating transfers in - General Fund             100,000                 160,000                   160,000                     40,000                    40,000                  160,000                        -
         Other                                             306,196                  75,000                     75,000                    75,000                             -               75,000                        -   Community Foundation

                                                 $         493,185       $         320,777       $           372,863        $          115,034        $            40,079       $          372,863      $                 -


70805   Operating Expenditures
5100      Salaries & Benefits                    $                   -   $                   -   $                      -   $                     -   $                     -   $                   -   $                 -
5200      Operating Supplies                                         -                       -                          -                         -                         -                       -                     -
5300      Contractual Services                                     250                       -                    500                             -                         -                  500                        -
5400      Other Expenses                                             -                       -                          -                         -                         -                       -                     -
5700      Capital Outlays                                            -                       -                          -                         -                         -                       -                     -
5900      Other Financing Uses                             417,538                 387,256                   385,300                              -                         -              385,300                        -
                                                 $         417,788       $         387,256       $           385,800        $                     -   $                     -   $          385,800      $                 -


90000   Project Expenditures
5200      Operating Supplies                     $                   -   $                   -   $                      -   $                     -   $                     -   $                   -   $                 -
5300      Contractual Services                                       -                       -                          -                         -                         -                       -                     -
                                                 $                   -   $                   -   $                      -   $                     -   $                     -   $                   -   $                 -
                                                 $         417,788       $         387,256       $           385,800        $                     -   $                     -   $          385,800      $                 -


        Available Fund Balance - EOY             $          96,745       $          30,266       $             81,619       $          145,300        $          136,824        $           17,329      $         (64,290)




                                                                                                                                                                                                                                                Page 23 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                       Original Budget           Actual to Date           Actual to Date            1Q Reforecast       Increase (Decrease)
                                                       Actual 2012             Actual 2013                                                                                                                                    Comments
                                                                                                      Estimate FY2014               9/30/13                  9/30/12                   FY2014            From FY14 Original



305     Tax Increment Finance Authority Fund
        Available Fund Balance - BOY               $          16,445       $          19,639      $             14,278       $            14,163      $            19,639       $           14,163      $             (115)


        Means of Financing
         Property taxes                            $          53,057       $          44,439      $             36,612       $                    -   $                     -   $           36,612      $                 -
         Federal & state grants                                        -                      -                          -                        -                         -                       -                     -
         State shared revenue                                          -                      -                          -                        -                         -                       -                     -
         Charges for services                                          -                      -                          -                        -                         -                       -                     -
         Interest income                                             137                     85                    200                            9                        27                  200                        -
         Operating transfers in - General Fund                         -                      -                          -                        -                         -                       -                     -
         Operating transfers in - TIFA Fund                            -                      -                          -                        -                         -                       -                     -
         Operating transfers in - Insurance Fund                       -                      -                          -                        -                         -                       -                     -
         Other                                                         -                      -                          -                        -                         -                       -                     -
                                                   $          53,194       $          44,524      $             36,812       $                    9   $                    27   $           36,812      $                 -


70805   Operating Expenditures
5100      Salaries & Benefits                      $                   -   $                  -   $                      -   $                    -   $                     -   $                   -   $                 -
5200      Operating Supplies                                           -                      -                          -                        -                         -                       -                     -
5300      Contractual Services                                         -                      -                          -                        -                         -                       -                     -
5400      Other Expenses                                               -                      -                          -                        -                         -                       -                     -
5700      Capital Outlays                                              -                      -                          -                        -                         -                       -                     -
5900      Other Financing Uses                                50,000                  50,000                    50,000                    12,500                   12,500                   50,000                        -

                                                   $          50,000       $          50,000      $             50,000       $            12,500      $            12,500       $           50,000      $                 -



90000   Project Expenditures
5200      Operating Supplies                       $                   -   $                  -   $                      -   $                    -   $                     -   $                   -   $                 -
5300      Contractual Services                                         -                      -                          -                        -                         -                       -                     -
                                                   $                   -   $                  -   $                      -   $                    -   $                     -   $                   -   $                 -
                                                   $          50,000       $          50,000      $             50,000       $            12,500      $            12,500       $           50,000      $                 -


        Available Fund Balance - EOY               $          19,639       $          14,163      $              1,090       $             1,672      $             7,166       $              975      $             (115)




                                                                                                                                                                                                                                    Page 24 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                    Original Budget           Actual to Date           Actual to Date           1Q Reforecast       Increase (Decrease)
                                                       Actual 2012           Actual 2013                                                                                                                                  Comments
                                                                                                   Estimate FY2014               9/30/13                  9/30/12                  FY2014            From FY14 Original

394     Downtown Development Authority Fund
        Available Fund Balance - BOY               $         272,145     $         186,771     $           166,941        $          167,477       $          186,771       $          167,477      $              536

        Means of Financing
         Property taxes                            $         305,797     $         313,432     $           292,531        $                    -   $                    -   $          292,531      $                 -
         Federal & state grants                                      -                     -                          -                        -                        -                       -                     -
         State proposal A reimbursement revenue                      -                     -                          -                        -                        -                       -                     -
         Charges for services                                        -                     -                          -                        -                        -                       -                     -
         Interest income                                        2,477                 1,435                   1,150                       140                      410                   1,150                        -
         Operating transfers in - General Fund                       -                     -                          -                        -                        -                       -                     -
         Operating transfers in - PIF                                -                     -                          -                        -                        -                       -                     -
         Operating transfers in - Insurance Fund                     -                     -                          -                        -                        -                       -                     -
         Other                                                       -                     -                          -                        -                        -                       -                     -
                                                   $         308,274     $         314,867     $           293,681        $               140      $               410      $          293,681      $                 -


70805   Operating Expenditures
5100      Salaries & Benefits                      $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5200      Operating Supplies                                         -                     -                          -                        -                        -                       -                     -
5300      Contractual Services                                       -                     -                    250                            -                        -                  250                        -
5400      Other Expenses                                             -                     -                          -                        -                        -                       -                     -
5700      Capital Outlays                                            -                     -                          -                        -                        -                       -                     -
5900      Other Financing Uses                               393,648               334,161                 332,288                     (1,130)                     593                 332,288                        -

                                                   $         393,648     $         334,161     $           332,538        $            (1,130) $                   593      $          332,538      $                 -



90000   Project Expenditures
5200      Operating Supplies                       $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                       -                     -                          -                        -                        -                       -                     -
                                                   $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
                                                   $         393,648     $         334,161     $           332,538        $            (1,130) $                   593      $          332,538      $                 -


        Available Fund Balance - EOY               $         186,771     $         167,477     $           128,084        $          168,747       $          186,588       $          128,620      $              536




                                                                                                                                                                                                                                Page 25 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                              Original Budget           Actual to Date           Actual to Date            1Q Reforecast       Increase (Decrease)
                                              Actual 2012             Actual 2013                                                                                                                                    Comments
                                                                                             Estimate FY2014               9/30/13                  9/30/12                   FY2014            From FY14 Original



408     Arena Improvement Fund
        Available Fund Balance - BOY      $                 779   $          23,779      $              6,479       $             4,867      $            23,779       $            4,867      $           (1,612)


        Means of Financing
         Special assessments              $                   -   $                  -   $                      -   $                    -   $                     -   $                   -   $                 -
         Federal & state grants                               -                      -                          -                        -                         -                       -                     -
         State shared revenue                                 -                      -                          -                        -                         -                       -                     -
         Charges for services                        22,885                    8,165                   14,000                            -                         -               14,000                        -
         Interest income                                    115                     97                    200                            4                        36                  200                        -
         Operating transfers in                               -                      -                          -                        -                         -                       -                     -
         Other                                       23,400                          -                          -                        -                         -                       -                     -
                                          $          46,400       $            8,262     $             14,200       $                    4   $                    36   $           14,200      $                 -


30906   Operating Expenditures
5100      Salaries & Benefits             $                   -   $                  -   $                      -   $                    -   $                     -   $                   -   $                 -
5200      Operating Supplies                                  -                      -                                                                                                                           -
5300      Contractual Services                                -                      -                  5,000                            -                         -                5,000                        -
5400      Other Expenses                                      -                      -                          -                        -                         -                       -                     -
5700      Capital Outlays                            23,400                  27,174                             -                        -                 4,004                           -                     -
5900      Other Financing Uses                                -                      -                          -                        -                         -                       -                     -
                                          $          23,400       $          27,174      $              5,000       $                    -   $             4,004       $            5,000      $                 -


90000   Project Expenditures
5200      Operating Supplies              $                   -   $                  -   $                      -   $                    -   $                     -   $                   -   $                 -
5300      Contractual Services                                -                      -                          -                        -                         -                       -                     -

5400      Other Expenses                                      -                      -                          -                        -                         -                       -                     -

5900      Other Financing Uses                                -                      -                          -                        -                         -                       -                     -
                                          $                   -   $                  -   $                      -   $                    -   $                     -   $                   -   $                 -
                                          $          23,400       $          27,174      $              5,000       $                    -   $             4,004       $            5,000      $                 -


        Available Fund Balance - EOY      $          23,779       $            4,867     $             15,679       $             4,871      $            19,811       $           14,067      $           (1,612)




                                                                                                                                                                                                                           Page 26 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                             Original Budget           Actual to Date           Actual to Date           1Q Reforecast       Increase (Decrease)
                                              Actual 2012           Actual 2013                                                                                                                                                  Comments
                                                                                            Estimate FY2014               9/30/13                  9/30/12                  FY2014            From FY14 Original



403     Sidewalk Improvement Fund
        Available Fund Balance - BOY      $         665,541     $         575,774       $           468,965        $          469,488       $          575,774       $          469,488      $              523


        Means of Financing
         Special assessments              $          55,668     $          39,349       $             35,000       $                    -   $                    -   $           35,000      $                 -
         Federal & state grants                             -                       -                          -                        -                        -                       -                     -
         State shared revenue                               -                       -                          -                        -                        -                       -                     -
         Charges for services                               -                       -                          -                        -                        -                       -                     -
         Interest income                             11,581                  6,681                     6,000                       393                    1,012                   6,000                        -
         Operating transfers in                             -                       -                          -                        -                        -                       -                     -
         Other                                              -                       -                          -                        -                        -                       -                     -
                                          $          67,249     $          46,030       $             41,000       $               393      $             1,012      $           41,000      $                 -


30906   Operating Expenditures
5100      Salaries & Benefits             $                 -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
5200      Operating Supplies                                -                       -                          -                        -                        -                       -                     -
5300      Contractual Services                              -                       -                          -                        -                        -                       -                     -
5400      Other Expenses                                    -                       -                          -                        -                        -                       -                     -
5700      Capital Outlays                                   -                       -                          -                        -                        -                       -                     -
5900      Other Financing Uses                      151,705               152,080                   152,140                             -                        -              152,140                        -   Debt service on 2003 sidewalk bonds

                                          $         151,705     $         152,080       $           152,140        $                    -   $                    -   $          152,140      $                 -



90000   Project Expenditures
5200      Operating Supplies              $                 -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                         5,311                      236                          -                        -                        -                       -                     -
5400      Other Expenses                                    -                       -                          -                                                                         -                     -
5900      Other Financing Uses                              -                       -                          -                        -                        -                       -                     -
                                          $            5,311    $                 236   $                      -   $                    -   $                    -   $                   -   $                 -
                                          $         157,016     $         152,316       $           152,140        $                    -   $                    -   $          152,140      $                 -


        Available Fund Balance - EOY      $         575,774     $         469,488       $           357,825        $          469,881       $          576,786       $          358,348      $              523




                                                                                                                                                                                                                                        Page 27 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                           Original Budget           Actual to Date           Actual to Date            1Q Reforecast       Increase (Decrease)
                                              Actual 2012           Actual 2013                                                                                                                                                 Comments
                                                                                          Estimate FY2014               9/30/13                  9/30/12                   FY2014            From FY14 Original



404     Public Improvement Fund
        Available Fund Balance - BOY      $         551,506     $         559,637     $           709,558        $          677,857       $          559,637        $          677,857      $         (31,701)


        Means of Financing
         Special assessments              $                 -   $                 -   $                      -   $                    -   $                     -   $                   -   $                 -
         Property taxes                                     -                     -                          -                        -                         -                       -                     -
         Federal & state grants                             -                     -                          -                        -                         -                       -                     -
         Charges for services                        40,416                       -                          -                        -                         -                       -                     -
         Sales of property                           21,090                       1                  5,000                            -                        16                5,000                        -
         Interest income                               5,700                 3,554                   7,500                       822                    1,145                    7,500                        -
         Operating transfers in                             -                     -                          -                        -                         -                       -                     -

                                                                                                                                                                                                                   MMRMA dividend earmarked for fire
         Other                                       37,659               320,409                 200,000                             -                         -              200,000                        -
                                                                                                                                                                                                                  equipment replacement


                                          $         104,865     $         323,964     $           212,500        $               822      $             1,161       $          212,500      $                 -



30936   Operating Expenditures
5100      Salaries & Benefits             $                 -   $                 -   $                      -   $                    -   $                     -   $                   -   $                 -
5200      Operating Supplies                                -                     -                          -                        -                         -                       -                     -
5300      Contractual Services                              -                     -                  5,000                            -                         -                5,000                        -
5400      Other Expenses                                    -                     -                          -                        -                         -                       -                     -
5700      Capital Outlays                            45,499                       -                          -                        -                         -                       -                     -
5900      Other Financing Uses                              -                     -                                                   -                         -                                             -


                                          $          45,499     $                 -   $              5,000       $                    -   $                     -   $            5,000      $                 -




90000   Project Expenditures
5200      Operating Supplies              $                 -   $                 -   $                      -   $                    -   $                     -   $                   -   $                 -
5300      Contractual Services                       51,235                       -                          -                        -                         -                       -                     -
5400      Other Expenses                                    -                     -                          -                        -                         -                       -                     -
5700      Capital Outlays                                   -             205,744                 550,000                     (2,741)                   1,715                  550,000                        -

                                          $          51,235     $         205,744     $           550,000        $            (2,741) $                 1,715       $          550,000      $                 -

                                          $          96,734     $         205,744     $           555,000        $            (2,741) $                 1,715       $          555,000      $                 -


        Available Fund Balance - EOY      $         559,637     $         677,857     $           367,058        $          681,420       $          559,083        $          335,357      $         (31,701)




                                                                                                                                                                                                                                       Page 28 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                           Original Budget           Actual to Date           Actual to Date           1Q Reforecast       Increase (Decrease)
                                              Actual 2012           Actual 2013                                                                                                                                                 Comments
                                                                                          Estimate FY2014               9/30/13                  9/30/12                  FY2014            From FY14 Original



482     State Grants Fund
        Available Fund Balance - BOY      $         237,439     $         147,766     $           127,550        $          126,257       $          147,766       $          126,257      $           (1,293)


        Means of Financing
         Special assessments              $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
         Federal & state grants                     121,630                49,875                 381,000                             -                        -              506,000                125,000     Trail, blight elimination grant, EPA
         Sales of Property                                  -                     -                          -                        -                        -                       -                     -
         Interest income                               9,250                 1,708                   2,500                            -                        -                2,500                        -
         Operating transfers in                             -                     -                          -                        -                        -                       -                     -
                                                                                                                                                                                                                 Contribution from schools for blight
         Other                                              -                     -                 30,000                            -                        -               30,000                        -
                                                                                                                                                                                                                 grant

                                          $         130,880     $          51,583     $           413,500        $                    -   $                    -   $          538,500      $         125,000



30936   Operating Expenditures
5100      Salaries & Benefits             $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5200      Operating Supplies                                -                     -                          -                        -                        -                       -                     -
5300      Contractual Services                              -                     -                          -                        -                        -                       -                     -
5400      Other Expenses                                    -                     -                          -                        -                        -                       -                     -
5700      Capital Outlays                           120,505                       -                          -                        -                        -                       -                     -
5900      Other Financing Uses                      100,048                       -                          -                        -                        -                       -                     -
                                          $         220,553     $                 -   $                      -   $                    -   $                    -   $                   -   $                 -



90000   Project Expenditures
5200      Operating Supplies              $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -

5300      Contractual Services                              -              73,092                   23,216                    12,313                      250                  23,216                        - Brownfield loan repayment

5700      Capital Outlays                                   -                     -               411,000                             -                        -              506,000                 95,000     Trail, blight elimination grant, EPA

                                          $                 -   $          73,092     $           434,216        $            12,313      $               250      $          529,216      $          95,000

                                          $         220,553     $          73,092     $           434,216        $            12,313      $               250      $          529,216      $          95,000



        Available Fund Balance - EOY      $         147,766     $         126,257     $           106,834        $          113,944       $          147,516       $          135,541      $          28,707




                                                                                                                                                                                                                                        Page 29 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                       Original Budget           Actual to Date           Actual to Date           1Q Reforecast       Increase (Decrease)
                                                      Actual 2012             Actual 2013                                                                                                                                    Comments
                                                                                                      Estimate FY2014               9/30/13                  9/30/12                  FY2014            From FY14 Original



594     Marina & Launch Ramp Fund
        Available Cash Balance - BOY              $         243,852       $         263,362       $           232,436        $          206,007       $          263,362       $          206,007      $         (26,429)

        Means of Financing
         Special assessments                      $                   -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
         Federal & state grants                                       -              88,046                   175,000                             -                        -              210,000                 35,000
         State shared revenue                                         -                       -                          -                        -                        -                       -                     -
         Charges for services                               198,418                 220,853                   180,000                     43,883                   50,969                 180,000                        -
         Interest income                                       1,949                   1,383                       800                       195                      440                     800                        -
         Operating transfers in                                       -                       -                          -                        -                        -                       -                     -

         Other                                                 9,952                 13,377                      4,000                     5,580                    2,950                   4,000                        -

                                                  $         210,319       $         323,659       $           359,800        $            49,658      $            54,359      $          394,800      $          35,000

70756   Operating Expenditures - Marina
5100      Salaries & Benefits                     $          17,276       $          27,517       $             26,812       $             5,238      $             6,423      $           26,812      $                 -
5200      Operating Supplies                                  9,912                    7,010                     7,600                     1,795                    1,475                   7,600                        -
5300      Contractual Services                              155,456                 169,707                   118,415                     48,889                   60,872                 118,415                        -
5400      Other Expenses                                            260                      89                    200                            -                        -                  200                        -
5700      Capital Outlays                                      5,806                   1,709                    17,500                            -                   527                  17,500                        -
5900      Other Financing Uses                                      47                        -                          -                        -                        -                       -                     -
          Other Cash Uses (e.g. Debt Principal)                       -              70,590                              -                        -                        -                       -                     -
                                                  $         188,757       $         276,622       $           170,527        $            55,922      $            69,297      $          170,527      $                 -


70759   Operating Expenditures - Ramps
5100      Salaries & Benefits                     $                   -   $                 186   $              1,000       $                    -   $               186      $            1,000      $                 -
5200      Operating Supplies                                        90                      946                  1,000                            -                   773                   1,000                        -
5300      Contractual Services                               11,371                    6,808                    10,500                     4,955                    3,241                  10,500                        -
5400      Other Expenses                                              -                       -                          -                        -                        -                       -                     -
5700      Capital Outlays                                             -                       -                          -                        -                        -                       -                     -
5900      Other Financing Uses                                        -                       -                          -                        -                        -                       -                     -
          Other Cash Uses (e.g. Debt Principal)               (9,409)                         -                          -                        -                        -                       -                     -
                                                  $            2,052      $            7,940      $             12,500       $             4,955      $             4,200      $           12,500      $                 -


90000   Project Expenditures
5200       Operating Supplies                     $                   -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                        -              96,452                   175,000                             -                        -              210,000                 35,000
5700      Capital Outlays                                             -                       -                          -                        -                        -                       -                     -
                                                  $                   -   $          96,452       $           175,000        $                    -   $                    -   $          210,000      $          35,000
                                                  $         190,809       $         381,014       $           358,027        $            60,877      $            73,497      $          393,027      $          35,000


        Available Cash Balance - EOY              $         263,362       $         206,007       $           234,209        $          194,788       $          244,224       $          207,780      $         (26,429)




                                                                                                                                                                                                                                   Page 30 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                       Original Budget           Actual to Date           Actual to Date            1Q Reforecast       Increase (Decrease)
                                                      Actual 2012             Actual 2013                                                                                                                                                    Comments
                                                                                                      Estimate FY2014               9/30/13                  9/30/12                   FY2014            From FY14 Original



661     Equipment Fund
        Available Cash Balance - BOY              $       2,880,251       $       1,819,863       $         1,546,209        $        1,821,689       $        1,819,863        $        1,821,689      $         275,480


        Means of Financing
         Special assessments                      $                   -   $                   -   $                      -   $                    -   $                     -   $                   -   $                 -
         Federal & state grants                                       -                       -                          -                        -                         -               84,000                 84,000     Law enforcement grant - radios
         State shared revenue                                         -                       -                          -                        -                         -                       -                     -
         Charges for services                             2,033,929               2,171,472                 2,100,000                   447,028                  455,204                 2,100,000                        -
         Interest income                                     20,707                  27,585                     27,500                     9,891                   12,036                   27,500                        -
         Operating transfers in                                       -                       -                          -                        -                         -                7,000                   7,000    Grant match from criminal forfeitures
         Other                                               82,380                  87,613                   100,000                     21,132                    7,591                  100,000                        -
                                                  $       2,137,016       $       2,286,670       $         2,227,500        $          478,051       $          474,831        $        2,318,500      $          91,000


60932   Operating Expenditures
5100      Salaries & Benefits                     $         445,560       $         417,357       $           421,002        $            89,442      $            89,118       $          421,002      $                 -
5200      Operating Supplies                                806,413                 855,383                   899,700                   221,689                  178,926                   899,700                        -
5300      Contractual Services                              733,902                 775,120                   767,748                   163,687                  169,349                   767,748                        -
5400      Other Expenses                                            855                     828                  2,000                       185                           86                2,000                        -
5700      Capital Outlays                                   577,576                 421,622                 1,134,000                   523,879                    49,253                1,607,500                473,500

5900      Other Financing Uses                                        -                       -                          -                        -                         -                       -                     -

          Other Cash Uses (e.g. Debt Principal)              79,765                (185,466)                             -                        -                         -                       -                     -
                                                  $       2,644,071       $       2,284,844       $         3,224,450        $          998,882       $          486,732        $        3,697,950      $         473,500


90000   Project Expenditures
5200      Operating Supplies                      $         553,333       $                   -   $                      -   $                    -   $                     -   $                   -   $                 -
5300      Contractual Services                                        -                       -                          -                        -                         -                       -                     -
5700      Capital Outlays                                             -                       -                          -                        -                         -                       -                     -
                                                  $         553,333       $                   -   $                      -   $                    -   $                     -   $                   -   $                 -
                                                  $       3,197,404       $       2,284,844       $         3,224,450        $          998,882       $          486,732        $        3,697,950      $         473,500


        Available Cash Balance - EOY              $       1,819,863       $       1,821,689       $           549,259        $        1,300,858       $        1,807,962        $          442,239      $        (107,020)




                                                                                                                                                                                                                                                    Page 31 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                   Original Budget           Actual to Date           Actual to Date           1Q Reforecast       Increase (Decrease)
                                                    Actual 2012           Actual 2013                                                                                                                                    Comments
                                                                                                  Estimate FY2014               9/30/13                  9/30/12                  FY2014            From FY14 Original



642     Public Service Building Fund
        Available Cash Balance - BOY            $         268,058     $         383,301       $           428,846        $          435,245       $          383,301       $          435,245      $            6,399


        Means of Financing
         Special assessments                    $                 -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
         Federal & state grants                                   -                       -                          -                        -                        -                       -                     -
         State shared revenue                                     -                       -                          -                        -                        -                       -                     -
         Charges for services                             969,342             1,085,289                 1,087,448                   271,322                  271,322                1,087,448                        -
         Interest income                                     2,571                 2,201                     6,000                       373                      675                   6,000                        -
         Operating transfers in                                   -                       -                          -                        -                        -                       -                     -
         Other                                                    -                     210                          -                        -                        -                       -                     -
                                                $         971,913     $       1,087,700       $         1,093,448        $          271,695       $          271,997       $        1,093,448      $                 -


60442   Operating Expenditures
5100      Salaries & Benefits                   $         571,707     $         586,104       $           595,176        $          128,012       $          112,916       $          595,176      $                 -
5200      Operating Supplies                               16,353                18,315                     16,650                     5,033                    5,164                  16,650                        -
5300      Contractual Services                            218,170               296,295                   302,480                     51,135                   59,072                 302,480                        -
5400      Other Expenses                                     9,785                      691                    750                            -                        -                  750                        -
5700      Capital Outlays                                  14,068                10,389                     22,300                    17,158                    1,856                  22,300                        -
5900      Other Financing Uses                                    -                       -                          -                        -                        -                       -                     -
        Other Cash Uses and Adjustments (e.g.
                                                           26,587                  2,896                             -                        -                        -                       -                     -
        Debt Principal)

                                                $         856,670     $         914,690       $           937,356        $          201,338       $          179,008       $          937,356      $                 -



90000   Project Expenditures
5200      Operating Supplies                    $                 -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                    -             121,066                     50,000                    15,025                           -               50,000                        -
5700      Capital Outlays                                         -                       -                          -                        -                        -                       -                     -
                                                $                 -   $         121,066       $             50,000       $            15,025      $                    -   $           50,000      $                 -
                                                $         856,670     $       1,035,756       $           987,356        $          216,363       $          179,008       $          987,356      $                 -


        Available Cash Balance - EOY            $         383,301     $         435,245       $           534,938        $          490,577       $          476,290       $          541,337      $            6,399




                                                                                                                                                                                                                               Page 32 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                   Original Budget           Actual to Date            Actual to Date           1Q Reforecast       Increase (Decrease)
                                                    Actual 2012           Actual 2013                                                                                                                                     Comments
                                                                                                  Estimate FY2014               9/30/13                   9/30/12                  FY2014            From FY14 Original



643     Engineering Services Fund
        Available Cash Balance - BOY            $         (93,420) $             53,417       $           102,181        $          123,887        $            53,417      $          123,887      $          21,706


        Means of Financing
         Special assessments                    $                 -   $                   -   $                      -   $                     -   $                    -   $                   -   $                 -
         Federal & state grants                                   -                       -                          -                         -                        -                       -                     -
         State shared revenue                                     -                       -                          -                         -                        -                       -                     -
         Charges for services                             428,481               451,922                   437,000                     46,399                  194,027                  400,000                (37,000)
         Interest income                                          4                     564                    500                            91                   123                     500                        -
         Operating transfers in                                   -                       -                          -                         -                        -                       -                     -
         Other                                            105,783                72,362                     80,000                     2,808                    68,732                  80,000                        -
                                                $         534,268     $         524,848       $           517,500        $            49,298       $          262,882       $          480,500      $         (37,000)


60447   Operating Expenditures
5100      Salaries & Benefits                   $         307,740     $         320,345       $           324,088        $            71,758       $            70,878      $          324,088      $                 -
5200      Operating Supplies                                5,842                  7,713                     9,730                       861                     2,124                   9,730                        -
5300      Contractual Services                            123,597                99,008                     99,613                    20,627                    23,133                  99,613                        -
5400      Other Expenses                                          -                1,636                     1,000                             -                        -                1,000                        -
5700      Capital Outlays                                    5,455                 5,432                    11,200                     4,435                     1,034                  11,200                        -
5900       Other Financing Uses                                   -                       -                          -                         -                        -                       -                     -
        Other Cash Uses and Adjustments (e.g.
                                                          (55,203)               13,297                              -                         -                        -                       -                     -
        Debt Principal)
                                                $         387,431     $         447,431       $           445,631        $            97,681       $            97,169      $          445,631      $                 -


90000   Project Expenditures
5200      Operating Supplies                    $                 -   $                   -   $                      -   $                     -   $                    -   $                   -   $                 -
5300      Contractual Services                                    -                6,947                    10,000                    12,429                       860                  10,000                        -
5700      Capital Outlays                                         -                       -                          -                         -                        -                       -                     -
                                                $                 -   $            6,947      $             10,000       $            12,429       $               860      $           10,000      $                 -
                                                $         387,431     $         454,378       $           455,631        $          110,110        $            98,029      $          455,631      $                 -


        Available Cash Balance - EOY            $          53,417     $         123,887       $           164,050        $            63,075       $          218,270       $          148,756      $         (15,294)




                                                                                                                                                                                                                                Page 33 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                   Original Budget           Actual to Date           Actual to Date           1Q Reforecast       Increase (Decrease)
                                                    Actual 2012           Actual 2013                                                                                                                                    Comments
                                                                                                  Estimate FY2014               9/30/13                  9/30/12                  FY2014            From FY14 Original



677     General Insurance Fund
        Available Cash Balance - BOY            $       1,420,174     $       1,933,642       $         1,915,067        $          880,314       $        1,933,642       $          880,314      $      (1,034,753)


        Means of Financing
         Special assessments                    $                 -   $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
         Federal & state grants                                   -                       -                          -                        -                        -                       -                     -
         State shared revenue                                     -                       -                          -                        -                        -                       -                     -
         Charges for services                           3,608,788             3,021,299                 3,250,000                   812,273                  657,264                3,250,000                        -
         Interest income                                   10,395                23,989                     20,000                     8,990                   10,974                  20,000                        -
         Retireee Health Reimbursement                    902,938               798,600                   750,000                   134,254                  151,270                  750,000                        -
         MMRMA dividend payment                                   -                       -                          -                        -                        -                       -                     -
         Operating transfers in                            28,046                28,046                     28,046                     7,011                    7,011                  28,046                        -

         Other                                                    -                       -                          -                        -                        -                       -                     -

                                                $       4,550,167     $       3,871,934       $         4,048,046        $          962,528       $          826,519       $        4,048,046      $                 -


30851   Operating Expenditures
5100      Salaries & Benefits                   $          32,969     $          32,185       $             32,178       $             7,119      $             6,715      $           32,178      $                 -
5200      Operating Supplies                                      -                     540                    200                            -                        -                  200                        -
5300      Contractual Services                          4,277,725             4,029,298                 4,000,000                   886,030                  803,839                4,000,000                        -
5400      Other Expenses                                          -                     490                  1,000                            -                   200                   1,000                        -
5700      Capital Outlays                                         -                3,310                     2,000                       395                      430                   2,000                        -

5900      Other Financing Uses                             81,096               600,000                              -                        -              600,000                           -                     -

        Other Cash Uses and Adjustments (e.g.
                                                         (908,424)              259,439                              -                        -                        -                       -                     -
        Debt Principal)

                                                $       3,483,366     $       4,925,262       $         4,035,378        $          893,544       $        1,411,184       $        4,035,378      $                 -


90000   Project Expenditures
5200      Operating Supplies                    $         553,333     $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                                    -                       -                          -                        -                        -                       -                     -
5700      Capital Outlays                                         -                       -                          -                        -                        -                       -                     -
                                                $         553,333     $                   -   $                      -   $                    -   $                    -   $                   -   $                 -
                                                $       4,036,699     $       4,925,262       $         4,035,378        $          893,544       $        1,411,184       $        4,035,378      $                 -


        Available Cash Balance - EOY            $       1,933,642     $         880,314       $         1,927,735        $          949,298       $        1,348,977       $          892,982      $      (1,034,753)




                                                                                                                                                                                                                               Page 34 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                 Original Budget           Actual to Date           Actual to Date           1Q Reforecast       Increase (Decrease)
                                                    Actual 2012           Actual 2013                                                                                                                                  Comments
                                                                                                Estimate FY2014               9/30/13                  9/30/12                  FY2014            From FY14 Original

590     Sewer Fund
        Available Cash Balance - BOY            $       3,320,219     $       3,701,462     $         3,655,685        $        4,158,969       $        3,701,462       $        4,158,969      $         503,284

        Means of Financing
         Special assessments                    $               -     $               -     $                 -        $                -       $                -       $                -      $               -
         Federal & state grants                                 -                     -                  10,000                         -                        -                  144,000                134,000
         State shared revenue                                   -                     -                       -                         -                        -                        -                      -
         Charges for services                           6,308,525             7,044,257               6,562,851                 1,473,382                1,570,857                6,562,851                      -
         Interest income                                   25,008                20,783                  17,500                     3,438                    6,266                   17,500                      -
         Repayment of DDA advance                               -                     -                       -                         -                        -                        -                      -
         Operating transfers in                                 -                     -                       -                         -                        -                        -                      -
         Other                                            147,109                27,335                 150,000                     5,224                    6,617                  150,000                      -
                                                $       6,480,642     $       7,092,375     $         6,740,351        $        1,482,044       $        1,583,740       $        6,874,351      $         134,000

30548   Operating Expenditures Administration
5100      Salaries & Benefits                   $               -     $               -     $                 -        $                 -      $                 -      $                -      $                 -
5200      Operating Supplies                                    -                     -                       -                          -                        -                       -                        -
5300      Contractual Services                            333,856               304,916                 288,957                     56,621                   60,332                 288,957                        -

5400      Other Expenses                                   19,221                13,278                   12,000                     8,678                    4,581                  12,000                        -

5700       Capital Outlays                                        -                     -                          -                        -                        -                       -                     -
5900       Other Financing Uses                                   -                     -                          -                        -                        -                       -                     -
        Other Cash Uses and Adjustments (e.g.
                                                            (3,965)            (179,300)                           -                        -                        -                       -                     -
        Debt Principal)

                                                $         349,112     $         138,894     $           300,957        $            65,299      $            64,913      $          300,957      $                 -


60559   Operating Expenditures Maintenance
5100      Salaries & Benefits                   $         481,291     $         511,494     $           657,360        $          121,798 $                123,128 $                657,360 $                      -
5200      Operating Supplies                               26,203                45,803                  47,440                     9,179                    8,054                   47,440                        -
5300      Contractual Services                          4,897,216               418,548                 426,654                   100,706                  110,418                  426,654                        -
5400      Other Expenses                                        -                     -                   2,000                         -                        -                    2,000                        -
5700      Capital Outlays                                     986                 6,780                  16,000                     2,747                    3,443                   16,000                        -
5900      Other Financing Uses                                  -                     -                       -                         -                        -                        -                        -
                                                $       5,405,696     $         982,625     $         1,149,454        $          234,430 $                245,043 $              1,149,454 $                      -

60557   Operating Expenditures Treatment
5100      Salaries & Benefits                   $                 -   $               - $                     - $                       - $                      - $                      - $                      -
5200      Operating Supplies                                      -                   -                       -                         -                        -                        -                        -
5300      Contractual Services                                    -           5,286,893               5,200,000                   463,651                1,085,190                5,200,000                        -
5400      Other Expenses                                          -                   -                       -                         -                        -                        -                        -
5700      Capital Outlays                                         -                   -                       -                         -                        -                        -                        -
5900      Other Financing Uses                                    -                   -                       -                         -                        -                        -                        -
                                                $                 -   $       5,286,893 $             5,200,000 $                 463,651 $              1,085,190 $              5,200,000 $                      -

90000   Project Expenditures
5200       Operating Supplies                   $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5300      Contractual Services                            344,591               226,456                 760,000                     32,415                   12,431                 870,000                110,000

5700      Capital Outlays                                         -                     -                          -                        -                        -                       -                     -

                                                $         344,591     $         226,456     $           760,000        $            32,415      $            12,431      $          870,000      $         110,000
                                                $       6,099,399     $       6,634,868     $         7,410,411        $          795,795       $        1,407,577       $        7,520,411      $         110,000


        Available Cash Balance - EOY            $       3,701,462     $       4,158,969     $         2,985,625        $        4,845,218       $        3,877,625       $        3,512,909      $         527,284




                                                                                                                                                                                                                                  Page 35 of 40
        City of Muskegon
        Annual Budget & Quarterly Budget Reforecast - Other Funds
                                                                                                 Original Budget           Actual to Date           Actual to Date           1Q Reforecast       Increase (Decrease)
                                                    Actual 2012           Actual 2013                                                                                                                                                 Comments
                                                                                                Estimate FY2014               9/30/13                  9/30/12                  FY2014            From FY14 Original

591     Water Fund
        Available Cash Balance - BOY            $       3,585,169     $       2,782,590     $         2,397,782        $        2,303,174       $        2,782,590       $        2,303,174      $         (94,608)


        Means of Financing
         Special assessments                    $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
         Federal & state grants                                   -                6,188                   7,000                            -                 5,403                   7,000                        -
         State shared revenue                                     -                     -                          -                        -                        -                       -                     -
         Charges for services - City                    2,903,177             3,240,046               3,582,746                   870,001                  941,828                3,582,746                        -   10% rate increase effective 10/1/13
         Charges for services - Wholesale               1,870,053             2,132,729               2,389,553                   611,520                  682,047                2,389,553                        -
         Maintenance services - Township                  177,450               166,225                 170,000                     18,332                   20,181                 170,000                        -
         Interest income                                   19,625                10,982                  20,000                      1,575                    3,732                  20,000                        -
         Lease of facilities                              156,478               202,460                 173,000                     46,778                   38,088                 173,000                        -
         Repayment of DDA advance                                 -                     -                          -                        -                        -                       -                     -
         Operating transfers in                                   -                     -                          -                        -                        -                       -                     -
         Other                                            127,312               167,861                 125,000                     48,200                   49,286                 125,000                        -
                                                $       5,254,095     $       5,926,491     $         6,467,299        $        1,596,406       $        1,740,565       $        6,467,299      $                 -


30548   Operating Expenditures Administration
5100      Salaries & Benefits                   $                 -   $                 -   $                      -   $                    -   $                    -   $                   -   $                 -
5200       Operating Supplies                                     -                     -                          -                        -                        -                       -                     -
5300       Contractual Services                           537,845               555,273                 517,549                   108,930                  116,733                  517,549                        -

5400       Other Expenses                                  17,683                18,607                   17,000                     5,842                    3,173                  17,000                        -

5700       Capital Outlays                                        -                     -                          -                        -                        -                       -                     -
5900       Other Financing Uses                           410,187               349,535                 352,635                     96,604                 102,491                  352,635                        -   Water System Bond Interest
        Other Cash Uses and Adjustments (e.g.
                                                        1,507,904             1,053,438               1,295,000                             -                        -            1,295,000                        -   Water System Bond Principal
        Debt Principal)

                                                $       2,473,619     $       1,976,853     $         2,182,184        $          211,376       $          222,397       $        2,182,184      $                 -


60559   Operating Expenditures Maintenance
5100      Salaries & Benefits                   $         795,793     $         864,872     $           782,058        $          194,945       $          180,849       $          782,058      $                 -
5200      Operating Supplies                              228,357               184,091                 212,027                    69,722                   75,563                  212,027                        -
5300      Contractual Services                            340,925               391,921                 321,806                   103,418                   83,760                  321,806                        -
5400      Other Expenses                                   43,297                83,511                  57,830                    21,940                    8,544                   57,830                        -
5700      Capital Outlays                                   5,714                16,599                  16,000                       131                   13,542                   16,000                        -
5900      Other Financing Uses                                  -                     -                       -                         -                        -                        -                        -
                                                $       1,414,086     $       1,540,994     $         1,389,721        $          390,156       $          362,258       $        1,389,721      $                 -


60558   Operating Expenditures Filtration
5100      Salaries & Benefits                   $         633,066     $         668,538     $           716,980        $          141,153       $          153,306       $          716,980      $                 -
5200      Operating Supplies                              228,723               242,374                 290,000                    40,307                   50,055                  290,000                        -
5300      Contractual Services                            477,313               530,021                 567,536                    76,595                  101,094                  567,536                        -
5400      Other Expenses                                    2,469                 3,650                   3,500                       750                      790                    3,500                        -
5700      Capital Outlays                                  55,988                84,549                  47,500                     1,411                   10,033                   47,500                        -
5900      Other Financing Uses                                  -                     -                       -                         -                        -                        -                        -
          Replacement Reserve - DWRF                            -                     -                       -                         -                        -                        -                        -
                                                $       1,397,559     $       1,529,132     $         1,625,516        $          260,216       $          315,278       $        1,625,516      $                 -

90000   Project Expenditures
5200       Operating Supplies                   $               -     $               -     $                 -        $                -       $                -       $                -      $                 -
5300       Contractual Services                           771,410             1,358,928                 725,000                    32,097                  771,848                  725,000                        -
5700       Capital Outlays                                      -                     -                       -                         -                        -                        -                        -
                                                $         771,410     $       1,358,928     $           725,000        $           32,097       $          771,848       $          725,000      $                 -
                                                $       6,056,674     $       6,405,907     $         5,922,421        $          893,845       $        1,671,781       $        5,922,421      $                 -

        Available Cash Balance - EOY            $       2,782,590     $       2,303,174     $         2,942,660        $        3,005,735       $        2,851,374       $        2,848,052      $         (94,608)




                                                                                                                                                                                                                                                             Page 36 of 40
City of Muskegon
Quarterly Budget Reforecast and 2013-14 Proposed Budget
                                                                     2013-14 Budgeted       2013-14 Budgeted         2013-14             2013-14
                                                                    Projects (Including    Projects (Including     Estimated           Estimated
                                                                                                                                                          Grant
                                                   Responsibility   Carryover Amounts      Carryover Amounts      Project Grant       Project Grant                               Comments
                                                                                                                                                          Year
                                                                      From Prior FY)       From Prior FY) 1Q        Revenue           Revenue 1Q
                                                                         Original              Reforecast           Original           Reforecast


                                                                    BUDGETED MAJOR CAPITAL PROJECTS


 101   General Fund

       VOIP Phone System                               Maurer       $            22,000    $            22,000    $               -   $               -             Year 2 of 5 annual payments, 0% interest

       Mc Graft Park Improvements                     Al-Shatel                  22,000                 22,000            22,000              22,000      FY14           Contribution from McGraft Trust

       Capital Improvements - PM & Beukema Parks      Al-Shatel                  20,000                 20,000                                                             Roofs & other major repairs

       Boardwalk Repairs                              Al-Shatel                  25,000                 25,000                                                               Primarily at Kruse Park

       ADA Compliance, Various Locations              Al-Shatel                  20,000                 20,000                    -                   -                        Federal agreement

       Veteran's Park Upgrades                        Al-Shatel                  12,000                 12,000                    -                   -                           City's share

                                                                                121,000                121,000            22,000              22,000

 202   Major Streets

       Laketon, Park to Peck                          Al-Shatel                1,175,000              1,175,000          704,000             704,000      FY14    Design in FY13; Construction FY14; STP Funds

       State Projects - Required Payments             Al-Shatel                  30,000                 30,000                                                                  Various projects

       Laketon, Wood to Getty                         Al-Shatel                 275,000                275,000                    -                                  Reconstruct - concrete with STP Funds

       Sherman, Estes to Glenside                     Al-Shatel                1,050,000              1,050,000          301,000             301,000      FY14           Changed to design only in FY13

       Southern Avenue, 5th to Sanford                Al-Shatel                 225,000                225,000                    -                   -                       Design Only in FY13

                                                                               2,755,000              2,755,000         1,005,000           1,005,000

 203   Local Streets

       Merrill, Fifth to First/Third                  Al-Shatel                 150,000                150,000                    -           32,000                 Resurface as part of sewer replacement

       Palmer, McGraft to Southern (850')             Al-Shatel                 200,000                200,000                    -                   -                           Reconstruct

                                                                                350,000                350,000                    -           32,000

 404   Public Improvement Fund

       New Fire Truck                                  Lewis                    550,000                550,000                    -                   -                       Replaces Engine 22

                                                                                550,000                550,000                    -                   -

 408   Arena Improvement Fund




                                                                                                                                                                                  Page 37 of 40
City of Muskegon
Quarterly Budget Reforecast and 2013-14 Proposed Budget
                                                                                         2013-14 Budgeted      2013-14 Budgeted        2013-14             2013-14
                                                                                        Projects (Including   Projects (Including    Estimated           Estimated
                                                                                                                                                                            Grant
                                                                      Responsibility    Carryover Amounts     Carryover Amounts     Project Grant       Project Grant                              Comments
                                                                                                                                                                            Year
                                                                                          From Prior FY)      From Prior FY) 1Q       Revenue           Revenue 1Q
                                                                                             Original             Reforecast          Original           Reforecast


                                                                                        BUDGETED MAJOR CAPITAL PROJECTS
                                                                                                          -                     -                   -                   -

                                                                                                          -                     -                   -                   -

 482   State Grants Fund

       EPA Grant                                                      Brubaker-Clarke                26,500                26,500           26,500              26,500

       Blight Elimination Grant                                       Brubaker-Clarke               134,500               134,500          134,500             134,500              Demo Bluffton School & General Plumbing

       SmartZone Pre-Seed                                             Brubaker-Clarke                     -                     -                   -                   -

       Musketawa Trail Connection (Keating to Black Creek)               Al-Shatel                  250,000               260,000          250,000             260,000                 Contingent upon DNR land purchase

       Musketawa Trail Connection (Industrial - Port City)               Al-Shatel                        -                85,000                   -           85,000      FY14

                                                                                                    411,000               506,000          411,000             506,000

 590   Sewer

       Palmer, McGraft to Southern                                       Al-Shatel                  120,000               120,000                   -                   -             Replace sewer as part of street project

       Merrill, Fifth to First/Third (1100')                             Al-Shatel                  170,000               170,000                   -                   -               Replace 15" sewer with 20" sewer

       Southern Avenue, Fifth to Sanford                                 Al-Shatel                   40,000                40,000                   -                   -             Design in FY13 & construction in FY14

       Sewer Rehabilitation Project (Various Projects)                   Al-Shatel                  150,000               150,000                   -                   -               Lining of manholes and sewer lines

       Austin Lift Station                                               Al-Shatel                  230,000               230,000                   -                   -             Design in FY13 & construction in FY14

       Infiltration Study, S-2                                           Al-Shatel                   50,000               160,000                   -          144,000

                                                                                                    760,000               870,000                   -          144,000

 591   Water

       High Service Valves - Upgrade 2 of 4 to Ball Valves               Al-Shatel                  130,000               130,000                   -                   -

       Projects Identified in Reliability Study                          Al-Shatel                   75,000                75,000                   -                   -             Study underway/completed by August

       Laketon, Park to Peck                                             Al-Shatel                  165,000               165,000                   -                   -           Water repairs associated with street project

       Water Main Replacements, Various Locations - 2" & 4" Waterma      Al-Shatel                  120,000               120,000                   -                   -

       Southern Avenue, 5th to Sanford                                   Al-Shatel                   30,000                30,000                   -                   -             Design in FY13 & construction in FY14

       Sherman, Estes to Glenside                                        Al-Shatel                  165,000               165,000                   -                   -                Changed to Design Only in FY13




                                                                                                                                                                                                    Page 38 of 40
City of Muskegon
Quarterly Budget Reforecast and 2013-14 Proposed Budget
                                                                      2013-14 Budgeted      2013-14 Budgeted        2013-14             2013-14
                                                                     Projects (Including   Projects (Including    Estimated           Estimated
                                                                                                                                                         Grant
                                                    Responsibility   Carryover Amounts     Carryover Amounts     Project Grant       Project Grant                             Comments
                                                                                                                                                         Year
                                                                       From Prior FY)      From Prior FY) 1Q       Revenue           Revenue 1Q
                                                                          Original             Reforecast          Original           Reforecast


                                                                     BUDGETED MAJOR CAPITAL PROJECTS
        GIS Update and Maintenance                     Al-Shatel                  20,000                20,000                   -                   -             County licensing & map maintenance

        Water Plant Reliability Study                  Al-Shatel                  20,000                20,000                   -                   -              Required by MDEQ Every Five years

                                                                                 725,000               725,000                   -                   -

  594   Marina

        Cottage Grove & Hartshorn Marina Dredging      Al-Shatel                 175,000               210,000          175,000             210,000      FY14            Grant Amount Increased

                                                                                 175,000               210,000          175,000             210,000

  642   PSB

        Bathroom & Roof Repairs                        Al-Shatel                  25,000                25,000                                                       New facility in the equipment area

        Fiber Connection to DPW                         Maurer                    25,000                25,000                   -                   -            Improved connection; 2-3 Year Payback

                                                                                  50,000                50,000                   -                   -

  643   Engineering Services

        Intergovernmental Engineering Work             Al-Shatel                  10,000                10,000           10,000              10,000

                                                                                  10,000                10,000           10,000              10,000

  661   Equipment Fund

20/Quant Non-Vehicular Equipment:



   1    Flail Mower                                    Al-Shatel                   9,500                 9,500                   -                   -                  Replaces unit 70201 (1987)

   1    Sweeper Broom                                  Al-Shatel                  15,000                15,000                   -                   -                 Replaces unit 50180B (1991)

   4    Trailers & Low Boy                             Al-Shatel                  25,000                60,000                   -                   -                 New, transporting equipment

   1    Arrow Board                                    Al-Shatel                   4,500                 4,500                   -                   -                             New

   2    Front Plows                                    Al-Shatel                  10,000                10,000                   -                   -                             New

   1    Scale                                          Al-Shatel                       -                12,000                   -                   -           Carryover - Budgeted, Not Purchased FY13

                                                                                  64,000               111,000                   -                   -

 5746   Communications Equipment:




                                                                                                                                                                                Page 39 of 40
City of Muskegon
Quarterly Budget Reforecast and 2013-14 Proposed Budget
                                                                         2013-14 Budgeted       2013-14 Budgeted             2013-14                 2013-14
                                                                        Projects (Including    Projects (Including         Estimated               Estimated
                                                                                                                                                                      Grant
                                                       Responsibility   Carryover Amounts      Carryover Amounts          Project Grant           Project Grant                                Comments
                                                                                                                                                                      Year
                                                                          From Prior FY)       From Prior FY) 1Q            Revenue               Revenue 1Q
                                                                             Original              Reforecast               Original               Reforecast


                                                                        BUDGETED MAJOR CAPITAL PROJECTS


  9    Radar units - Police                               Al-Shatel                  27,000                 27,000                        -                       -

  9    Light bars for new police cruisers                 Al-Shatel                  23,000                 23,000                        -                       -

 18    In-Car Video System, Includes Server - Police      Al-Shatel                  63,000                 63,000                        -                       -

  5    Handheld Radios - Parks                            Al-Shatel                   6,000                  6,000                        -                       -

 20    Radios - Police                                    Al-Shatel                  20,000                111,500                        -               84,000                  Mobile/Portables (Police) per Jeff Lewis

                                                                                    139,000                230,500                        -               84,000

5730   Vehicles:



  9    Cruisers/Police SUV's (3)                          Al-Shatel                 270,000                260,000                        -                       -                  Includes police package outfitting

  1    Mini-Excavator                                     Al-Shatel                  50,000                 50,000                        -                       -           Water Department - new - needed for tight areas

  1    Backhoe                                            Al-Shatel                  90,000                 90,000                        -                       -                       Replaces 50252 (2000)

  1    Loader                                             Al-Shatel                 150,000                150,000                        -                       -                       Replaces 50164 (2000)

  1    Utility Vehicle - Cemetery                         Al-Shatel                  13,000                 11,500                        -                       -                       Replaces 70560 (1995)

  1    T.V. Truck for Sewers                              Al-Shatel                 185,000                185,000                        -                       -                            Replacement

  2    Plow Truck                                         Al-Shatel                 120,000                265,000                        -                       -               Replaces 1992 Vehicles (#620 & #622)

  1    3/4 Ton Truck                                      Al-Shatel                  25,000                 25,000                        -                       -                   Replaces Vehicle #573 - Parks

  1    1 Ton Truck                                        Al-Shatel                  28,000                 28,000                        -                       -                                New

  1    Sewer Jet                                          Al-Shatel                        -               201,500                        -                       -             Carryover - Budgeted, Not Purchased FY13

                                                                                    931,000               1,266,000                       -                       -

        Total Equipment Fund                                                       1,134,000              1,607,500                       -               84,000



                                                                        $          6,491,000   $          7,204,500   $         1,623,000     $         2,013,000




                                                                                                                                                                                                Page 40 of 40
        Commission Meeting Date: November 12, 2013




Date:        November 5, 2013
To:          Honorable Mayor & City Commission
From:        Planning & Economic Development Department
RE:          Rental Program and Environmental Code
             Compliance Professional Services Agreement
             (“Agreement”)


SUMMARY OF REQUEST: To approve the Agreement with SafeBuilt of Michigan,
Inc. to provide rental program and environmental code compliance services to the
City of Muskegon, including the Lease Agreement (Exhibit C). The Vacant Building
and Dangerous Building programs will remain with the Community & Economic
Development Division, with a supervisor and an inspector (see memo attached).



FINANCIAL IMPACT: The contract will save the City on costs associated with the
rental program and environmental code compliance services. Also, it is anticipated
that additional funds will be generated through broader enforcement and oversight of
all programs.



BUDGET ACTION REQUIRED: None at this time.



STAFF RECOMMENDATION: To approve the agreement between the City of
Muskegon and SafeBuilt of Michigan, Inc. and to authorize the Mayor and Clerk to
execute the contract at the discretion of City staff on or after December 1, 2013.
Memorandum
To:     Honorable Mayor & City Commission
CC:     Frank Peterson, City Manager
From: Cathy Brubaker-Clarke, Director of Community & Economic Development
Date: 11/7/2013
Re:     Rental and Environmental Code Compliance Contract



City staff and SafeBuilt have negotiated a “Rental Program and Environmental Code
Compliance Professional Services Agreement”. The Agreement provides for SafeBuilt
to take over responsibilities for the Rental Inspections Program and the Environmental
Code Compliance Program (Grass & Trash; 24-Hour Terrace Violations). The
Agreement is attached.

For the services provided by SafeBuilt, the City will pay $34,170 per month for the first
year (increases for remaining two years). The City will continue to receive rental
inspection fees, up to $160,000 a year. If these revenues are exceeded, the City and
SafeBuilt will split the remainder. SafeBuilt will also lease out the former Civil Service
office and pay rent to the City in the amount of $200 per month.

In addition, the Planning Department will retain the position of Code Compliance
Supervisor and one Code Compliance Inspector. The Department will continue to
administer the Vacant Building and Dangerous Building Programs.

A cost savings is expected by contracting out the rental inspection and code compliance
services. In addition to general savings, it is also expected that SafeBuilt will be able to
increase the number of inspections; thus raising the revenue overall (e.g., the City
currently is expected to receive $160,000 in rental inspection fees; contracting with
SafeBuilt the amount of revenue is expected to rise with increased inspections,
providing additional revenue to the City).

Meanwhile, by retaining the position of Code Compliance Supervisor and Code
Compliance Inspector, the revenues of the City are expected to increase. The staff will
have more time to find vacant buildings, thus raising the revenue ($108,000 for the
2012-2013 budget year). Also, the Supervisor and Inspector will have more time to
pursue zoning inspections issues (with the potential of raising revenue).
                                                                           November 7, 2013


Staff met with the respective employee unions to discuss the contract with SafeBuilt and
the potential cost savings to the City. Both representatives from Local 517 M and Local
517M, Unit 2 agreed not to dispute the contract as long as one code enforcement
inspector was retained by the City.

Overall, it is expected that contracting out services for rental inspections and
environmental code compliance, while retaining the Code Compliance Supervisor and
one Code Compliance Inspector, will increase City revenue, while also increasing
productivity and efficiency.




                                                                                           2
EXHIBIT C: Lease Agreement




                            CITY OF MUSKEGON

                                                   Landlord

                                 TO


                        SAFEBUILT MICHIGAN, INC.

                                                   Tenant




                               LEASE




             Dated: November 05, 2013


             Premises in the City Hall Building
             City of Muskegon
             County of Muskegon
             State of Michigan

             Suite – (Former Civil Services Space)




                                   Page 1 of 14 
 
 
                                            LEASE


THIS LEASE, made November 05, 2013, between the City of Muskegon, a Michigan municipality
(“Landlord” or “the City”) of 933 Terrace Street, Muskegon, Michigan, 49443, and SAFEbuilt
Michigan, Inc., a Michigan foreign profit corporation (“Tenant”);


                                      ARTICLE I
                                     DEFINITIONS

     1.01 DEFINITIONS:       As used herein the following terms and phrases shall have the
meanings indicated:

             A.     Commencement Date: December 01, 2013

             B.     Term: The period of December 01, 2013 through November 30, 2016 ending at
                    midnight of the last day.

             C.     Rent Commencement Date: December 01, 2013.

             D.     Demised Premises: Suite – (Former Civil Services Space), which is N/A
                    square feet of office space, located on the second floor within the building
                    containing the City of Muskegon’s City Hall at 933 Terrace Street,
                    Muskegon, Michigan, 49443. See Exhibit A, 2nd floor plan of City Hall,
                    highlighting Demised Premises.

               E.    Common Areas: All areas, spaces and improvements which Landlord
makes available from time to time for the common use and benefit of Tenant, including, without
limitation, customer parking spaces, roads, walkways, promenades, sidewalks, landscaped and
planted areas, public rest rooms, and those portions of utility and sewer lines and systems and
fire protection and sprinkler alarm systems serving the common use and benefit of Tenant.

             F.    Landlord:   The City of Muskegon, the owner of the fee of the Demised
Premises.

              G. Requirements: All laws, statutes, ordinances (including, but not limited to,
building codes and zoning regulations and ordinances), orders, rules, regulations and
requirements of all federal, state, county and municipal governments, and the appropriate
agencies, officers, departments, boards and commissions thereof, and the board of fire
underwriters and/or the fire insurance rating organization or similar organization performing the
same or similar functions, whether now or hereafter in force, applicable to the Building or any
part thereof and/or the Demised Premises or the use or manner of use of the Building or any
part thereof and/or the Demised Premises or the sidewalks and curbs adjacent thereto.

           H. The Building: The structure located at 933 Terrace Street, in which the
Demised Premises are located and in which City of Muskegon City Hall is located.


                                            Page 2 of 14 
 
 
                                    ARTICLE II
                            DEMISE AND CONSTRUCTION
       2.01 DEMISE. Upon and subject to the terms and conditions of this Lease, Landlord
hereby leases to Tenant, and Tenant hereby hires from Landlord, the Demised Premises, for
the Term. Tenant acknowledges that the dimensions, shape and location of the Demised
Premises as described herein are approximate. Notwithstanding the foregoing, Landlord
reserves exclusively to itself and Tenant shall have no right in and to (a) the use of the exterior
faces of all perimeter walls, (b) the use of the roof, (c) the use of the land, improvements and
space below the bottom of the lower floor slabs of the Demised Premises and above the
interior surface of the ceiling of the Demised Premises, and (d) the use of the improvements
and space above the highest ceiling of the Demised Premises. Landlord also reserves and
Tenant shall have no right in and to the air rights above Tenant's office space.

      2.02 CONSTRUCTION. Tenant shall accept the Demised Premises in their present
“AS IS” condition and Landlord shall have no work to perform whatsoever with respect to the
Demised Premises.

       2.03 FURNITURE. Landlord shall provide any cubicle dividers, desks, file cabinets,
shelves, tables, floor mates, and/or wall document holders that are existing in the Demised
Premises on the Commencement Date. The use of the existing property shall be included in the
Fixed Rent and be included as part of the Demised Premises. Landlord shall not provide any
additional office furniture or equipment.

      2.04 ACCEPTANCE OF DEMISED PREMISES. Tenant’s occupancy of Suite –
(Former Civil Services Space)shall be conclusive evidence against Tenant as an admission that
every part of the Demised Premises is accepted "as is". Landlord shall have no responsibility in
any respect for damages to property of Tenant caused by water, flooding, waves or fluids of any
nature or origin whatsoever. Tenant hereby waives any and all benefits or rights to which
Tenant might become entitled by reason of any and all provisions of law that permit a tenant to
make repairs at the expense of a landlord or to terminate a lease by reason of the condition of
the Demised Premises.

                                       ARTICLE III
                             FIXED RENT AND SECURITY

       3.01 PAYMENT OF FIXED RENT. Commencing upon the Rent Commencement Date,
Tenant shall pay rent at the monthly rate of $200.00, in advance of the first day of each month
during the Term, except that if the Rent Commencement Date is not the first day of a month,
Fixed Rent for the period commencing on the Rent Commencement Date and ending on the last
day of the month in which the Rent Commencement Date occurs shall be apportioned on the
basis of the number of days in said month as compared to 365 days and paid on the Rent
Commencement Date. The Fixed Rent shall be paid promptly when due, in lawful money of the
United States, without notice or demand and without deduction, abatement, counterclaim or
setoff of any amount or for any reason whatsoever, to Landlord at the address of Landlord set
forth at the head of this Lease or such other address as Landlord may designate or to such
other person as Landlord may designate.



                                              Page 3 of 14 
 
 
        3.02 LATE CHARGES AND RETURN CHECK CHARGES. If payment of any Fixed
Rent shall not have been paid by the date on which such amount was due and payable a late
charge equal to the greater of (i) FIFTY DOLLARS ($50.00) and (ii) one and one-half percent
(1-1/2%) per calendar month or any part thereof (or the then maximum lawful interest rate, if
less), from the date on which such amount was due, on the amount overdue shall, at the
Landlord's option, be payable as damages for Tenant's failure to make prompt payment. In
addition to any other penalties or remedies available to Landlord in the event of any late
payment by Tenant, if any check in payment of any Fixed Rent is returned to Landlord by
Tenant's bank by reason of insufficient funds, uncollected funds or otherwise, a return check
administrative charge of FIFTY DOLLARS ($50.00) shall be payable to Landlord by Tenant.
The late charges and return check administrative charges for any month shall be payable the
first day of the following month, and in default of payment of any such charges, Landlord shall
have (in addition to all other remedies) the same rights as provided in this Lease for
nonpayment of Rent. Landlord and Tenant agree that the foregoing late charges and return
check administrative charges represent a reasonable estimate of the costs which Landlord will
incur by reason of late payment by Tenant and returned checks, and are fair compensation to
Landlord for its loss suffered by such late payment or returned check. Nothing in this Section
contained and no acceptance of late charges by Landlord shall be deemed to extend or change
the time for payment of Fixed Rent.

       3.03 ACCORD AND SATISFACTION. No payment by Tenant or receipt by Landlord of
any lesser amount than the amount stipulated to be paid hereunder shall be deemed other than
on account of the earliest stipulated Fixed Rent nor shall any endorsement or statement on any
check or letter be deemed an accord and satisfaction, and Landlord may accept any check or
payment without prejudice to Landlord's right to recover the balance due or to pursue any other
remedy available to Landlord.

      3.04   SECURITY DEPOSIT: None required.

       3.05 TAXES AND OTHER GOVERNMENT CHARGES.Tenant shall pay, before any
penalty or interest attaches, to Landlord beginning on the Commencement Date, the amount of
general property taxes, special taxes, lessee-user taxes, special assessments, and other
governmental charges of any kind whatsoever levied or assessed against or with respect to the
Premises at any time during the Term of this Lease which are attributable to an increase in
taxable value of Landlord's property based upon Tenant’s lease. Tenant shall pay, before any
penalty or interest attaches, all personal property taxes levied or assessed against the personal
property of Tenant located upon the Demised Premises, and all personal property taxes levied
or assessed against any and all personal property included under the Fixed Rent, and shall,
upon written request, furnish to Landlord duplicate receipts thereof. Tenant shall pay, before
penalty or interest attaches, special assessments, income (including, any privilege or excise
taxes based on gross revenue), and all other taxes levied on Tenant's business.

                                 ARTICLE IV
                          COMMON AREAS AND PARKING

       4.01 MAINTENANCE OF AND CHANGES IN COMMON AREAS. Subject to the
provisions of Section 7.04, Landlord will operate, manage, equip, light, repair and maintain, or
cause to be operated, managed, equipped, lighted, repaired and maintained, the Common
Areas for their intended purposes. Landlord reserves the right, at any time and from time to
                                            Page 4 of 14 
 
 
time to make changes, additions, alterations or improvements in and to such Common Areas
provided same shall not unreasonably block or interfere with Tenant's means of ingress or
egress to and from the Demised Premises.

        4.02 USE OF COMMON AREAS. Tenant and its licensees and their respective
officers, employees, agents, customers and invitees, shall have the non-exclusive right, in
common with Landlord and all others to whom Landlord has granted or may hereafter grant
such rights. Landlord reserves the right, at any time and from time to time, to close temporarily
all or any portions of the Common Areas for any of the following purposes when in Landlord's
reasonable judgment any such closing is necessary or desirable: to make repairs or changes
therein or to effect construction, repairs or changes, to prevent the acquisition of public rights in
such areas, to protect or preserve persons or property and Landlord may do such other acts in
and to the Common Areas as in its judgment may be desirable. While conducting business after
regular business hours on weeknights or weekends, Tenant may access the public restrooms.
Tenant’s clients may be permitted to use the public restrooms but are not permitted to enter any
other part of the City Hall building closed to the public after regular business hours on
weeknights and weekends.

       4.03 PARKING. Tenant and its officers, agents, and employees shall park their
vehicles only in areas from time to time designated by Landlord as the areas for such parking.
Tenant shall, upon written notice from Landlord, within five (5) days, furnish Landlord, or its
authorized agent, the State automobile license tag number assigned to its vehicle or vehicles
and the vehicles of all of its officers, agents and employees employed in the Demised Premises.
Landlord, after notice to Tenant that Tenant or any of its officers, agents or employees are not
parking in said designated parking areas or off-premises, as applicable, may, at its option, in
addition to any other remedies it may have, tow away such vehicles at Tenant's expense.


                                          ARTICLE V
                               UTILITIES AND SERVICES

        5.01 UTILITIES AND MECHANICAL MAINTENANCE. Landlord shall furnish heat,
electricity and water/sewer utilities serving Tenant and charges for said utilities shall be included
in the Fixed Rent. Tenant shall make all necessary arrangements for internet and phone
services and shall be responsible for all associated charges for said utilities. Separate telephone
and internet lines are required for Tenant that shall not be connected to the telephone or internet
systems used by City employees in the building.

       5.02 MAIL. Tenant shall not receive mail at any City office within City Hall. Tenant’s
mail shall be delivered directly to its space or Tenant may maintain a post office box.


                                   ARTICLE VI
                   USE AND ENJOYMENT OF DEMISED PREMISES

       6.01 PERMITTED USES. Tenant shall use the Demised Premises solely for the
purpose of conducting the business of SAFEbuilt Michigan, Inc. and Tenant shall not use or
permit or suffer the use of the Demised Premises for any other purpose whatsoever. The City of
Muskegon will allow SAFEbuilt Michigan, Inc. to service other W. Michigan communities form
                                              Page 5 of 14 
 
 
the leased space within City Hall. Tenant shall not advertise its services by stating it conducts
business in Muskegon City Hall or in any way suggest the City endorses Tenant’s services
because of this Lease agreement. Marketing brochures, business cards and all forms of
advertising may state the address of the building of the Demised Premises but may not refer to
“City Hall”. Tenant acknowledges that Muskegon City Hall is open to the public between the
hours of 8:30 a.m. to 5:00 p.m. and for morning and evening meetings before or after those
hours on certain days. Tenant acknowledges that on most weekends and holidays, City Hall is
closed to the public. Tenant shall be provided with three (3) keys that open the outer doors of
City Hall. Those keys are to be accounted for at all times and are not to be reproduced unless
reproduced and replaced by the Landlord. Lost keys shall be immediately reported to the
Director of Community Development. Tenant shall be liable for any and all damage and
expenses resulting from the loss of any of the provided keys (including, but not limited to,
necessary rekeying of any and all City Hall locks). Tenant shall instruct its employees of the
importance of locking all outer doors to City Hall upon entering and leaving the building during
hours when it is not open to the public. Tenant waives any claim or cause of action regarding
the nonavailability of the office space during emergency periods when, due to electrical power
outages, police or fire situations or acts of nature that City Hall remains closed to Tenant.

        6.02 SIGNS. Tenant shall provide a suitable identification sign or signs of such size,
design and character as Landlord shall designate and/or approve, and Tenant shall install same
on the door to Suite – (Former Leisure Services Space). All costs of fabricating, constructing,
installing, operating, maintaining and removing any and all such identification signs shall be
borne by Tenant. Other than such permitted signs, Tenant shall not place or install, or permit or
suffer to be placed or installed, or maintain, any sign upon or outside of the Demised Premises
or in any part of the building unless approved by Landlord. Tenant shall not place, install or
maintain, or permit or suffer to be placed, installed or maintained, on the exterior of the Demised
Premises, any awning, canopy, banner, flag, pennant, aerial, antenna or the like, nor place or
maintain on the interior or exterior of the glass of the windows or the doors of the Demised
Premises any sign.

      6.03 COMPLIANCE WITH LAWS.                 Tenant shall comply with the certificate of
occupancy relating to the Demised Premises and with all Requirements. Without limiting the
generality of the foregoing, Tenant shall not engage in any activity on or about the Demised
Premises that violates any Requirement(s) pertaining to environmental laws or hazardous
substances and shall take all investigatory and/or remedial action required by any governmental
agency or applicable Requirements for cleanup and removal of any contamination involving any
hazardous substance created or caused, directly or indirectly, by Tenant.

       6.04 ACCESS TO PREMISES AND EXCAVATION. Landlord shall have the right to
enter upon and in the Demised Premises at all reasonable times to examine the same and to
make such repairs, alterations, improvements and additions in the Demised Premises as
Landlord may deem necessary, and Landlord shall be allowed to take all materials into and
upon the Demised Premises that may be required therefor without the same constituting an
eviction of Tenant, in whole or in part, and the Fixed Rent shall in no way abate while such
repairs, alterations, improvements or additions are being made by reason of loss or interruption
of the business of Tenant due to the prosecution of any such work; provided, however, Landlord
shall use reasonable efforts not to unreasonably interfere with or interrupt Tenant's business in
the Demised Premises, but in no event shall Landlord be required to incur any additional
expense for work to be done during hours or days other than regular business hours and days.
                                             Page 6 of 14 
 
 
Tenant agrees that the City’s personnel files in the Demised Premises shall remain there and
the City shall have access to said files as needed. Tenant shall not move or view said files.

        6.05 MECHANICS' LIENS. Nothing contained in this Lease shall be deemed,
construed or interpreted to imply any consent or agreement on the part of Landlord to subject
Landlord's interest or estate to any liability under any mechanic's or other lien law. If any
mechanic's or other lien or any notice of intention to file a lien is filed against the City, or the
Demised Premises, or any part thereof, for any work, labor, services or materials claimed to
have been performed or furnished for or on behalf of Tenant or anyone holding any part of the
Demised Premises through or under Tenant, Tenant shall cause the same to be canceled and
discharged of record by payment, bond or order of a court of competent jurisdiction within 20
days after the earlier to occur of (i) such lien or notice becoming of record or (ii) the giving of
notice by Landlord to Tenant. Landlord shall have the right to post any notices of non-
responsibility which Landlord may deem necessary for the protection of Landlord and Landlord's
interest in the Demised Premises from mechanics' liens or liens of a similar nature; and Tenant
shall, before the commencement of any work which might result in any such lien, give written
notice to Landlord of its intention to do so in sufficient time to enable the posting of such notices.


                                  ARTICLE VII
                       ALTERATIONS, REPAIRS AND CHANGES

       7.01 ALTERATIONS BY TENANT. Tenant shall not make or cause to be made any
improvements, alterations, additions, changes, replacements or installations to the Demised
Premises, or make any holes or cuts in the walls, ceilings, roofs, or floors thereof, or change the
exterior color or architectural treatment of the Demised Premises, without on each occasion first
obtaining the consent of Landlord, and if such consent is granted, Tenant shall carry such
worker's compensation and general liability insurance and such other insurance as Landlord
may require, naming Landlord as an additional insured. In no event whatsoever shall Tenant
make any penetrations into the roof deck or the concrete slab or any fire wall without having
obtained Landlord's prior written consent, which consent, it is expressly understood and agreed
by Tenant may be given or withheld by Landlord in Landlord's sole and absolute discretion, and
which consent may be expressly conditioned upon Landlord, at Tenant's sole cost and expense,
performing such work on Tenant's behalf and/or overseeing the performance of such work by
Tenant to Landlord's satisfaction. Tenant shall submit to Landlord plans and specifications for
such work at the time Landlord's consent is sought. Any such improvements, alterations,
additions, changes, replacements or installations will be performed in a good and workmanlike
manner in accordance with the approved plans and specifications and in compliance with all
Requirements and shall be performed and completed by Tenant in an expeditious manner. The
cost of such improvements, alterations, additions, changes, replacements or installations shall
be paid in cash or its equivalent so that the Demised Premises shall at all times be free of liens
for work, labor, services or materials claimed to have been performed or furnished for or on
behalf of Tenant or anyone holding any part of the Demised Premises through or under Tenant.
All contractors and subcontractors performing work in or to the Demised Premises shall be
approved by Landlord prior to the performance of any such work.

        7.02 REPAIRS BY LANDLORD. Landlord shall make necessary structural repairs to
the Demised Premises (but excluding windows and window frames, doors, plate glass, store
fronts, showcases and signs) and shall keep in good condition and repair the foundations and
                                               Page 7 of 14 
 
 
roof of the Demised Premises and those portions of the utility systems that are for common use.
Landlord shall not be required to make any such repairs where same were caused or
occasioned by any act, omission or negligence of Tenant, or licensees of Tenant, or any of their
respective officers, employees, agents, customers, invitees or contractors. Landlord shall not
be required to commence any such repair until notice shall be received from Tenant specifying
the nature of the repair. The provisions of this Section shall not apply in the case of damage by
fire or other casualty or by eminent domain, in which event the obligations of the parties shall be
as provided in other Sections of this Lease. All costs and expenses incurred by Landlord
pursuant to the provisions of this Section shall be deemed to constitute Common Area costs.

       7.03 REPAIRS AND MAINTENANCE BY TENANT. Except for repairs required to be
performed by Landlord under Section 7.02, Tenant shall make all repairs and replacements to,
and shall keep clean, neat, safe, sanitary, in good order, repair and condition (including all
painting and decorating necessary to maintain at all times a clean and sightly appearance) and
free of vermin, the Demised Premises, including both inside and the outside, and any
equipment, facilities, fixtures and systems therein. In making repairs, Tenant shall use materials
equal in kind and quality to the original work. Tenant shall repaint and refurbish the Demised
Premises at reasonable periodic intervals to assure that the Demised Premises is kept in a first-
class and attractive condition through the Term. In cleaning the Demised Premises, Tenant shall
hire the same custodial service provided the Landlord has hired for the cleaning of the Common
Areas of The Building. Tenant shall purchase a level of custodial services sufficient to keep the
Demised Premises in an equivalent condition as the portion of The Building occupied by the
Landlord. The provisions of this Section shall not apply in the case of damage by fire or other
casualty or by eminent domain, in which event the obligations of the parties shall be as provided
in other Sections of this Lease. All alterations and repairs hereunder shall be subject to the
requirements and conditions set forth in Section 7.01 hereinbefore and shall be performed by
contractors approved by Landlord, and all such work shall conform to existing structures and
quality of the building.

        7.04 CHANGES BY LANDLORD. Landlord reserves the right, at any time and from
time to time, to increase, reduce or change the number, type, size, location, elevation, nature
and use of any of the Common Areas including, without limitation, the right to move and/or
remove same and to add additional stories thereon, provided same shall not unreasonably block
or interfere with Tenant's means of ingress or egress to and from the Demised Premises.

        7.05 LANDLORD'S CONSENT. In no event shall Landlord be required to consent to
any improvements, alterations, additions, changes, replacements or installations which, when
completed, will, in Landlord's judgment, be of such a character which will reduce the value,
rentability or usefulness of the Demised Premises or which will affect the facade, mechanical,
electrical or structural components of either the Demised Premises or the building or which
would reduce the Floor Space of the Demised Premises.

        7.06 FIRE OR CASUALTY; CONDEMNATION. In the event the Demised Premises are
totally destroyed by fire, wind, or other causes beyond the control of the Landlord, or are
condemned or otherwise taken by authority of local, state or federal government, then in any of
these events the lease Term shall cease and terminate as of the date of such destruction,
condemnation or taking. In the event of any loss or damage by fire or other casualty for which
the building or improvements on the Demised Premises may be insured, all amounts payable
upon any policy or policies of insurance shall be paid to Landlord. If the Demised Premises are
                                             Page 8 of 14 
 
 
damaged by fire, rain, wind or other such causes, so as to render the same partially untenable
or partially unfit for use, but are repairable within a reasonable time, then this Lease shall remain
in full force and effect, but Tenant’s rent shall be proportionately reduced until the Demised
Premises are repaired.


                                   ARTICLE VIII
                             INSURANCE AND INDEMNITY

        8.01 INSURANCE BY TENANT. A. Tenant shall maintain the following insurance at
Tenant's sole cost and expense: (a) commercial general public liability insurance covering the
Demised Premises and the conduct or operation of business therein, naming Landlord as
additional insured, with limits of not less than $1,000,000 combined single limit for bodily injury
or death and for property damage, including water damage and sprinkler leakage liability, (b) fire
and extended coverage insurance covering Tenant's stock in trade, fixtures, furniture,
furnishings, removable floor coverings, equipment, signs and all other property of Tenant in the
Demised Premises to the extent of one hundred (100%) percent of the full insurable value of the
property covered and not less than the amount sufficient to avoid the effect of the co-insurance
provisions of the applicable policy or policies, (c) comprehensive automobile liability insurance
including owned, non-owned and hired car coverage in an amount not less than $3,000,000
combined single limit per occurrence for bodily injury or death and for property damage, and (d)
any other insurance required for compliance with any Requirements. Tenant shall deliver to
Landlord and any additional insured specified by Landlord to Tenant such fully paid-for-policies
or certificates evidencing such coverage before the Commencement Date. Tenant shall procure
and pay for renewals of such insurance from time to time before the expiration thereof, and
Tenant shall deliver to Landlord and any additional insured such renewal policy or certificates
evidencing such renewal at least 30 days before the expiration of any existing policy. All such
policies shall be issued by companies of recognized responsibility licensed to do business in the
state in which the Demised Premises is located and having a general policy holder's rating of
not less than A, and financial ratings of not less than Class VIII as rated in the most current
"Best's" Insurance Reports, and all such policies shall contain a provision whereby the same
cannot be canceled or modified unless Landlord and any additional insured are given at least 30
days prior written notice by certified or registered mail of such cancellation or modification.

              B. Tenant shall require any contractor of Tenant performing work in, on or about
the Demised Premises to take out and keep in full force and effect, at no expense to Landlord
(a) commercial general public liability insurance in respect of the Demised Premises, and the
conduct of its work therein, naming Landlord as additional insured, with limits of not less than
$3,000,000 combined single limit for bodily injury or death and for property damage, including
water damage and sprinkler leakage legal liability; (b) workers' compensation or similar
insurance in form and amounts required by law (but in no event less than a combined single
limit of $1,000,000 per occurrence); and (c) comprehensive automobile liability insurance
including owned, non-owned and hired car coverage in an amount not less than $3,000,000
combined single limit per occurrence for bodily injury or death and for property damage.

              C. It is understood and agreed by naming Landlord as an additional insured,
coverage afforded is considered to be primary and any other insurance Landlord may have in
effect shall be considered secondary and/or excess. It is further understood and agreed that

                                              Page 9 of 14 
 
 
thirty (30) days advance written notice shall be given to Landlord of cancellation, non-renewal,
reduction and/or material change of any required insurance policy.

        8.02 INCREASE IN PREMIUMS. Tenant shall not do, permit or suffer to be done any
act, matter, thing or failure to act in respect of the Demised Premises or use or occupy the
Demised Premises or conduct or operate Tenant's business in any manner objectionable to
insurance companies whereby the fire insurance or any other insurance now in force or
hereafter to be placed on the Demised Premises or the building or any part thereof shall
become void or suspended or bring or keep anything upon the Demised Premises which shall
increase the rate of premiums of insurance on the Demised Premises or the building or any part
thereof or on the property located therein. If by reason of failure of Tenant to comply with the
foregoing provisions of this Section, any premiums in respect of insurance maintained by
Landlord shall be higher than those which would normally have been in effect, then Tenant shall
be liable to Landlord as hereinafter set forth. In case of a breach of this covenant, in addition to
all other rights and remedies of Landlord hereunder, Tenant shall (a) indemnify Landlord and
hold Landlord harmless from and against any loss which would have been covered by insurance
which shall have become void or suspended because of such breach by Tenant and (b) pay to
Landlord any and all increases of premiums on any insurance, including, without limitation, rent
insurance, resulting from any such breach. In addition to the foregoing, Tenant will, if Landlord
so requests, cease any action and/or remove any objects or improvements which have resulted
in increases in Landlord's insurance premiums.

        8.03 INDEMNIFICATION AND RELEASE.                   In the event legal proceedings are
threatened or filed against either party involving in any manner the performance of this Lease,
notification shall be given to the other party, including any knowledge or information which may
result in a claim against either of them, and cooperation shall take place between the parties
whenever any claim is filed against either party, involving in any manner the performance of this
Lease. Tenant shall defend and indemnify Landlord and shall hold Landlord harmless from and
against any and all injuries, losses, claims, actions, damages, liabilities and expenses (including
attorneys' fees and expenses) to persons or property arising from, related to or in connection
with the use or occupancy of the Demised Premises or the conduct or operation of business
therein or any default in the performance of any obligation of Tenant under this Lease. Landlord
shall not be liable or responsible for, and Tenant hereby releases Landlord from, all liability or
responsibility to Tenant or any person claiming by, through or under Tenant, by way of
subrogation or otherwise, for any loss or damage to any property in or around the Demised
Premises or to Tenant's business irrespective of the cause of such loss or damage, and Tenant
shall require its insurer(s) to include in all of Tenant's casualty insurance policies which could
give rise to a right of subrogation against Landlord a clause or endorsement whereby the
insurer(s) shall waive any rights of subrogation against Landlord. If Landlord shall, without fault
on its part, be made a party to any litigation commenced by or against Tenant, Tenant shall
indemnify and hold Landlord harmless from and against all costs, expenses and reasonable
attorneys' fees incurred or paid by Landlord in connection with such litigation.


                                      ARTICLE IX
                                   MISCELLANEOUS

       9.01 ASSIGNMENT OR SUBLETTING. Tenant shall not assign or sublet its rights under
this Lease.
                                             Page 10 of 14 
 
 
      9.02 RENEWAL. This Lease may be renegotiated for additional terms following the
completion of the current Term.

       9.03 DEFAULT AND REPOSSESSION. If the Demised Premises shall be deserted or
vacated, or if there shall be a default in the payment of rent or any part thereof for more than
seven days after written notice of such default by the Landlord, or if there shall be default in the
performance of any other covenant, agreement, condition, rule or regulation herein contained or
incorporated herein by reference for more than seven days after written notice of such default by
the Landlord, this Lease (if the Landlord so elects) shall thereupon become null and void, and
the Landlord shall have the right to reenter or repossess the Demised Premises, either by
summary proceedings, surrender, or otherwise, and dispossess and remove therefrom the
Tenant, or other occupants thereof, and their effects, without being liable to any prosecution
therefor. Tenant agrees to pay all expenses and damages incurred by Landlord as a result of
Tenant’s default, including Landlord’s reasonable attorney fees. If Tenant shall fail to perform
any of its obligations hereunder, Landlord may, if it so elects, and after five days' prior notice to
Tenant, cure such default at Tenant’s expense, and Tenant agrees to reimburse Landlord (as
additional rent) for all costs and expenses incurred as a result thereof upon demand.

       9.04 NULL AND VOID. This Lease runs with an Agreement for Professional Services,
entered into by and between the City of Muskegon and SAFEbuilt Michigan, Inc., and (if the
Landlord so elects) shall become null and void at the expiration or termination of the Agreement
for Professional Services. The Agreement for Professional Services runs with this Lease and (if
the Landlord so elects) shall become null and void at the expiration or termination of this Lease.

        9.05 OWNERSHIP OF IMPROVEMENTS AND PERSONAL PROPERTY.                              All
installations, alterations, additions, betterments and improvements upon the Demised Premises,
made by any party, shall become the property of Landlord when installed and shall remain upon
and be surrendered with the Demised Premises as a part thereof at the expiration or sooner
termination of the Term. Movable trade fixtures and other personal property which Tenant
installs at its own expense shall remain Tenant's property and may be removed at any time
provided Tenant promptly repairs any damage caused by such removal and provided further
that Tenant shall not then be in default under this Lease.

      9.06    END OF TERM. At the expiration or sooner termination of the Term, Tenant shall
quit and surrender to Landlord the Demised Premises, broom clean and in good order and
condition, ordinary wear and tear and damage by fire and any other insured casualty excepted.
At such expiration or sooner termination Tenant shall remove all property of Tenant and its
signage and at the option of Landlord, shall remove any or all alterations and other
improvements made by Tenant to the Demised Premises as designated by Landlord and Tenant
shall repair all damage to the Demised Premises caused by such removal and restore the
Demised Premises to the condition in which they were at the Commencement Date. Such
removal, repair and restoration shall be effected in accordance with the rules and regulations,
including construction rules and guidelines, of Landlord. It is agreed that any holding over by the
Tenant upon expiration of the Term of this Lease or any renewal or extension hereof, shall
operate as an extension of this Lease from month to month only.

    9.07     WAIVER OF JURY TRIAL AND RIGHT TO COUNTERCLAIM. Landlord and
Tenant shall and they hereby do waive trial by jury in any action, proceeding or counterclaim
                                              Page 11 of 14 
 
 
brought by either of the parties hereto against the other on any matters arising out of or in any
way connected with this Lease, the relationship of Landlord and Tenant, Tenant's use or
occupancy of the Demised Premises, and any emergency or other statutory remedy. Tenant
further agrees that it shall not interpose any counterclaim(s) in a summary proceeding or in any
action based on holdover or non-payment of Fixed Rent.

       9.08 NO WAIVER. The failure of Landlord to insist in any one or more cases upon the
strict performance or observation of any obligation of Tenant hereunder or to exercise any right
or option contained herein shall not be construed as a waiver or relinquishment for the future of
any such obligation of Tenant or any right or option of Landlord. Landlord's receipt and
acceptance of Fixed Rent, or Landlord's acceptance of performance of any other obligation by
Tenant, with knowledge of Tenant's breach of any provision of this Lease, shall not be deemed
a waiver of such breach. No consent, approval or waiver, express or implied, by Landlord or
Tenant to or of any breach of any covenant, agreement or obligation, of Landlord or Tenant shall
be construed as a consent or waiver to or of any other breach of the same or any other
covenant, agreement or obligation unless in each case in writing signed by Landlord or Tenant,
whichever the case may be. Landlord's failure during the Term to prepare and deliver to Tenant
any bill, statement or notice with respect to any item of Fixed Rent or any increases thereto by
operation of any provision of this Lease, shall not in any way cause Landlord to forfeit or
surrender its right to collect any item of Fixed Rent which may become due during the Term nor
shall such failure extend the date(s) on which any such items of Fixed Rent is due. In no event
shall Landlord be deemed to have any obligation to bill any item of Fixed Rent or any increases
thereto. IN NO EVENT SHALL LANDLORD BE LIABLE FOR THE ACTS OF ANY TENANT OR
OCCUPANT. IN ADDITION, IN NO EVENT SHALL LANDLORD BE LIABLE FOR SPECIAL,
INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING, WITHOUT
LIMITATION, TENANT'S LOST PROFITS OR GOOD WILL.

      9.09    QUIET ENJOYMENT. Landlord covenants that Tenant, on paying the Fixed Rent
and performing all of Tenant's obligations under this Lease, shall peacefully and quietly have,
hold and enjoy the Demised Premises, the Common Areas and the appurtenances throughout
the Term without hindrance, ejection or molestation by any person lawfully claiming under
Landlord, subject to the terms and provisions of this Lease and to all mortgages and ground and
underlying leases of record to which this Lease may be or become subject and subordinate.
The parties acknowledge that as of the date of signing this Lease, the City is one of Tenant’s
clients and uses Tenant’s business services. Leasing space within the City Hall building is in no
way to be construed as entering into an employer-employee relationship.

      9.10    NOTICES. Any notice, demand, waiver, approval or consent hereunder shall be in
writing and shall be deemed duly served if mailed by registered or certified mail, postage
prepaid, in any post office station or letter box in the continental United States, return receipt
requested, or sent by reputable overnight carrier with delivery charges prepaid and proof of
delivery service to be provided, addressed:

     If to Tenant, to it at the address Tenant shall have last designated by notice to Landlord.

     If to Landlord, to it at 933 Terrace St., Muskegon, MI 49443; Attention: City Manager or
such other address as Landlord shall have last designated by notice to Tenant. With a copy to,
Parmenter O’Toole at 601 Terrace Street, Muskegon MI 49440; Attention: John Schrier.

                                            Page 12 of 14 
 
 
Such notice, demand, waiver, approval or consent shall be deemed served two (2) days after
mailing, or the next business day if sent by reputable overnight carrier.

       9.11 LEGAL EXPENSES. If a suit be brought for recovery of possession of the
Demised Premises, for the recovery of Fixed Rent, or because of the breach of any other
covenant, agreement or condition on the part of Tenant to be kept or performed, or a violation of
any rules and regulations promulgated pursuant to this Lease and a breach shall be established,
Tenant shall pay Landlord all expenses incurred in connection therewith, including appeals of
the above, including reasonable attorneys' fees and expenses. In case any such suit is settled
before judgment is entered therein, such costs, expenses and fees, including reasonable actual
attorney fees, shall nevertheless be recoverable by Landlord as part of said settlement.

    9.12     INTERPRETATION. Irrespective of the place of execution or performance, this
Lease shall be governed by and construed in accordance with the laws of the state of Michigan.

      9.13   LANDLORD'S RIGHTS. The taking of any action permitted hereunder by Landlord
shall not be construed or deemed to be a forcible or unlawful entry into or a detainer of the
Demised Premises, or an eviction, partial eviction or constructive eviction of Tenant from the
Demised Premises or any portion thereof and shall not relieve Tenant of its obligations under
this Lease.

      9.14    COMPLETE AGREEMENT.               There are no representations, agreements,
arrangements or understandings, oral or written, between the parties relating to the subject
matter of this Lease that are not fully expressed in this Lease. This Lease cannot be changed
or terminated orally or in any manner other than by a written agreement executed by both
parties. In making and executing this Lease, Tenant has relied solely on such investigations,
examinations and inspections as Tenant has chosen to make or has made and Tenant
acknowledges that Landlord has afforded Tenant the opportunity for full and complete
investigations, examinations and inspections.

      9.15    SEVERABILITY. Should any one or more of the provisions of this Lease be
determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions of this Lease shall not in any way be impaired or
affected.

     9.16    COUNTERPARTS. This Lease may be executed in any number of counterparts,
each of which shall be an original, but all of which shall together constitute but one Lease.

    9.17       TIME OF THE ESSENCE.           Time is of the essence of each term, covenant,
condition and obligation of this Lease.

      9.18 INDEPENDENT CONTRACTOR STATUS. Nothing in this Lease shall be deemed
to alter Tenant’s independent contractor status in relationship to Landlord. This Lease shall not
create an employee-employer relationship between Tenant and Landlord.



IN WITNESS WHEREOF, Landlord and Tenant have hereunto executed this Lease as of the
day and year first above written.
                                            Page 13 of 14 
 
 
    LANDLORD:
    City of Muskegon, a Michigan municipal corporation

    By: _____________________________________
    Stephen Gawron, Mayor

    By: _____________________________________
    Ann Cummings, City Clerk


    TENANT:
    SAFEbuilt Michigan, Inc., a Michigan foreign profit
    corporation

    By:__________________________________
    Name:_______________________________
    Title:________________________________

    (Tenant's Federal Taxpayer Identification
    Number is - 27-1314735             )




       Page 14 of 14 
 
 
                             CITY OF MUSKEGON, MICHIGAN
        RENTAL PROGRAM AND ENVIRONMENTAL CODE COMPLIANCE
                 PROFESSIONAL SERVICES AGREEMENT
                             Proposed
This Agreement for Professional Services ("Agreement") is entered into by and between theCity of Muskegon,
a Michigan municipal corporation, 933 Terrace Street, Muskegon, MI 49440, ("City") and SAFEbuilt Michigan,
Inc., ("SAFEbuilt"), licensed to do business in the State of Michigan, whose address is 500 West Big Beaver
Road, Troy, Michigan 48083. City and SAFEbuilt are individually referred to as a"Party" and may be
collectively referenced as the "Parties."

                                     RECITALS AND REPRESENTATIONS

WHEREAS, the City has the responsibility under State laws and City Ordinance to adopt andenforce adopted
ordinances, conduct inspections, andconduct other professional services as described in this Agreement; and

WHEREAS, SAFEbuilt has represented to the City that it has substantial knowledge andexperience in the
interpretation and application of the City's adopted Code of Ordinances with regard torental registration
program and environmental code compliance.

WHEREAS, SAFEbuilt represents that SAFEbuilt has the skill, ability, and expertise to performthe services
described in this Agreement; and

WHEREAS, the City desires to engage SAFEbuilt to provide the services described in thisAgreement subject
to the terms and conditions of the Agreement.

NOW, THEREFORE, in consideration of the benefits and obligations of this Agreement, theParties mutually
agree as follows:

1.0 AGREEMENT

    1.1 References to "SAFEbuilt" shall include any employees of SAFEbuilt, itscontractors, subcontractors,
        independent contractors.

2.0 SERVICES

    2.1 Services. As directed by and under the supervision of the Director of Community and Economic
        Development, or his/her designee, SAFEbuilt shall provide the City with the services described in
        Exhibit A(“Scope of Services").

    2.2 Incumbent Employees. SAFEbuilt is under no obligation to hire or retain current City of Muskegon
        employees. SAFEbuilt will hire the best candidate for the available positions. SAFEbuilt will interview
        all interested incumbent employees.

    2.3 Changes to Services. The City may request a change or changes in theServices. Any changes to
        Services that are mutually agreed upon between theCity and SAFEbuilt shall be made in writing which
        shall specifically designate anychanges in compensation for the Services and be made an amendment
        to theAgreement after approval by City Commission. To be effective, any changes must beapproved by
        City Commission, and signed by SAFEbuilt and the Mayor and City Clerk.

3.0 COMPENSATION

    3.1 Commencement of Services. Following execution of this Agreement by bothParties and on the Effective
        Date of December 01, 2013 or thirty (30) days after SAFEbuilt’s receipt of this fully executed agreement;
        whichever is later(the "Effective Date"), SAFEbuilt shall be authorizedto commence performance of the
                                                     Page 1 of 14 
 
 
       Services subject to the requirements andlimitations on compensation as provided by this Section 3.0
       and its subsections.Prior to December 01, 2013 effective date, SAFEbuilt agrees to attend transition
       trainingprovided by the City at no charge to the City. The purpose of this transitionperiod is to allow
       SAFEbuilt to do what is necessary to become fully functional forthe performance of services under this
       Agreement by December 01, 2013. During thistransition period, SAFEbuilt may begin moving into the
       former Civil Service space,begin review of current staff and procedure &policies; confer with the
       City'sInformation Technology Department regarding the City's BS&Asoftware and other items as
       needed; and to take other actions that are mutually acceptable to both Parties toassure a smooth
       transition.

    3.2 Compensation. SAFEbuilt shall receive payment as specified in Exhibit B.

    3.3 Hourly Fees. IfSAFEbuilt is required by the City to perform any service not included as part of itsScope
        of Services outlined in Exhibit Athe City shall be responsible for thehourly rate listed in Exhibit B.

    3.4 Collection of Fees. The Rental and Environmental Code Compliance Department, through SAFEbuilt,
        shallcollect appropriate related fees on behalf of the City. The fees shall be set by the City Commission,
        upon recommendation from City staff and SAFEbuilt.

Increases in Compensation or Addition of Reimbursable Expenses. Anyincreases or modification of
compensation or the addition of areimbursable expense(s) shall be subject to written amendment of
thisAgreement approved by City Commission and executed by both Parties. However, there isa pre-approved
three percent (3%) fee increase for the second and third years of service – December 01, 2014 through
November 30, 2015 and December 01, 2015 through November 30, 2016.

    3.5 Payment Processing. SAFEbuilt shall submit invoices and requests for paymentin a form acceptable to
        the City. Invoices shall be submitted by the 15thofeach month unless otherwise approved by this
        Agreement or in writing by theCity. All invoices shall contain sufficient information to account for all
        SAFEbuilttime (or other appropriate measure(s) of work effort for the Services during thestated period of
        the invoice. Invoices shall be given to the Director of Community and Economic Developmentwith a
        computation of the feesreceived. The City shall have thirty (30) days from receipt of the invoice to
        issuepayment to SAFEbuilt’s corporate offices at: SAFEbuilt; 3755 Precision Drive, Suite 140; Loveland,
        CO 80538 unless there is a dispute as to the amount due and owning. Ifthere is a dispute, the parties
        shall use the procedures set out in paragraph 3.6.

    3.6 City's Dispute of Amount of Payment. The City may request additionalinformation from SAFEbuilt
        substantiating any and all compensation sought bySAFEbuilt before accepting the invoice. When
        additional information is requestedby the City, the City shall advise SAFEbuilt in writing, identifying the
        specificitem(s) that are in dispute and giving specific reasons for any request forinformation. The City
        shall pay SAFEbuilt within thirty (30) days of the receiptof an invoice for any undisputed charges or, if
        the City disputes an item or invoiceand additional information is requested, within thirty (30) days of
        acceptance ofthe item or invoice by the City following receipt of the information requested andresolution
        of the dispute. To the extent possible, undisputed charges within thesame invoice as disputed charges
        shall be timely paid in accordance with thisAgreement. Payment by the City shall be deemed made and
        completed uponhand delivery to SAFEbuilt or designee of SAFEbuilt or upon deposit of suchpayment in
        the U.S. Mail, postage pre-paid, addressed to SAFEbuilt.

4.0 SAFEBUILT'S GENERAL RESPONSIBILITIES

    4.1 Reference to "SAFEbuilt" shall include SAFEbuilt employees,contractors, subcontractors, independent
        contractors, or anyone performingservices under this Agreement for SAFEbuilt.

    4.2 SAFEbuilt shall provide to the City the work telephone numbers of all employees,including any mobile
        telephones that will be used while performing servicesunder this Agreement. Mobile numbers will be for
        use by city staff only. SAFEbuilt reserves the right to release mobile numbers to the public as warranted.


                                                      Page 2 of 14 
 
 
    4.3 The City shall provide copies and amendments of applicableCity Code of Ordinances,street maps or
        other relevant materials to SAFEbuilt. These Code of Ordinances, streetmaps and all other materials
        shall remain the property of the City and shall beturned into the City at the termination of this
        Agreement. SAFEbuilt shall becomefamiliar with those documents and any unusual applications of
        those documents to Cityissues. SAFEbuilt is obligated to affirmatively request from the City
        suchinformation that SAFEbuilt, based on SAFEbuilt's professional experience, shouldreasonably
        expect is available and which would be relevant to the performanceof the Services.

    4.4 SAFEbuilt shall perform the Services in accordance with this Agreementand shall promptly inform the
        City concerning ambiguities and uncertaintiesrelated to SAFEbuilt's performance that are not addressed
        by the Agreement.

    4.5 SAFEbuilt shall employ a sufficient number of employees sufficiently experiencedand knowledgeable to
        perform the Services in a timely and prompt manner andsuch employees shall at all times act in a
        professional, polite, and courteousmanner to all persons regardless of the circumstances.

    4.6 SAFEbuilt shall not allow employees, contractors, or subcontractors that areconvicted of specific crimes
        to do work in the City. Those crimes include,but are not limited to, fraud, theft, criminal sexual conduct,
        assaultive or violentbehavior, serious moral turpitude, gambling, prostitution, weapons violations,
        taxevasion, controlled substances, or excessive use of alcohol.

    4.7 SAFEbuilt shall promptly comply with any written City request for the City or anyof its duly authorized
        representatives to reasonably access and review anybooks, documents, and papers, other than
        SAFEbuilt’s financial records, that are pertinent to SAFEbuilt’s performance under this Agreement for
        the purpose of the City performingan audit, examination, or other reviewof the Services.

    4.8 SAFEbuilt shall comply with all applicable federal, state and local laws,ordinances, regulations, and
        resolutions.

    4.9 SAFEbuilt shall be responsible at SAFEbuilt's expense for obtaining, and maintaining in a valid and
        effective status, all licenses and permits necessary to perform the Services unless specifically stated
        otherwise in this Agreement. SAFEbuilt shall supply copies to the City of appropriate licenses,
        registrations and permits for any individual performing services under this Agreement.

    4.10 If requested by the City, SAFEbuilt shall make the appropriate employees,contractors, subcontractors,
        agents and independent contractors available forcourt proceeding, as witnesses, expert witnesses or
        otherwise, instituted by orinvolving the City in either criminal or civil matters which involve
        servicesperformed under this Agreement, including but not limited to, appearances atpre-trials, bench
        trials, jury trial and at all other times requested by the City.

    4.11 SAFEbuilt shall make the appropriate employee, contractor, subcontractor, andindependent contractor
        available for consultation with the Director of Community and Economic Development and theCity
        Attorney, or their designees, to discuss issues regarding litigation and/ormatters of interest to City
        Commission or the public.

5.0 PERFORMANCE STANDARDS

    5.1 In performing the Services, SAFEbuilt shall use that degree of care, skill, and professionalism ordinarily
        exercised under similar circumstances by members of the same profession practicing or performing the
        substantially same or similar services in the State of Michigan. SAFEbuilt represents to the City that
        SAFEbuilt is, and its employees performing such Services are, properly licensed and/or registered
        within the State of Michiganfor the performance of the Services (if licensure and/or registration is
        required by applicable law) and that SAFEbuilt and employees possess the skills, knowledge, and
        abilities to competently, timely,and professionally perform the Services in accordance with this
        Agreement.



                                                      Page 3 of 14 
 
 
     5.2 In a timely manner, SAFEbuilt shall inform the Director of Community and Economic Developmentof all
         oralcomplaints and submit a copy of all written complaints it receives from thirdparties against any
         employee, contractor, subcontractor or independentcontractor of SAFEbuilt to the Director of
         Community and Economic Developmentand inform the Director of Community and Economic
         Developmentof any responses to the complaint or of any actions taken.

    5.3 The Parties mutually agree that SAFEbuilt's actions reflect on the reputation ofthe City. It is imperative
        to the City that SAFEbuilt treats the City and the publicwith the utmost fairness and respect. SAFEbuilt
        shall strictly comply with all theterms and conditions set out in this Agreement.

6.0 LEASING OF CITY PROPERTY - OFFICE SPACE

    6.1 The City of Muskegon and SAFEbuilt shall execute and adhere to the obligations of a rental lease as
        outlined in Exhibit C.

7.0 USE OF CITY SOFTWARE

    7.1 The City is licensed to use BS&A software. The City has obtained permission from BS&A to allow
        SAFEbuilt tohave access to the City's BS&Asoftware as long as that software is only usedby SAFEbuilt
        to perform the services under this Agreement and the Building Department Services Agreement for the
        City. SAFEbuilt acknowledges that the license to use the BS&Asoftwareterminates with the termination
        of these Agreements.
                  7.1.1   Upon SAFEbuilt service start date all Environmental Code Compliance Case
                          identification numbers; Rental Program identification numbers; identification numbers
                          will incorporate a prefix that signifies case or registration was generated under this
                          agreement.

    7.2 SAFEbuilt shall provide an original signed statement from each of its employeesacknowledging that
        he/she understands that the BS&A software is the soleproperty of BS&A and at no time may he/she
        download, copy, alter, or takeother prohibited actions regarding that software. SAFEbuilt is permitted to
        usestandard City software loaded on the City's computers leased under Section 7,for example,
        Microsoft Office and Outlook email. SAFEbuilt's right to use thesoftware applies only to work performed
        for the City and any rights to theuse of that software ceased upon their termination by SAFEbuilt and/or
        thetermination of the Agreement.

    7.3 SAFEbuilt agrees to defend, pay on behalf of, indemnify, and hold harmless theCity, its elected and
        appointed officials, employees, and volunteers against anyclaims, demands, suits or loss, and for any
        damages which may be asserted,claimed or recovered against or from the City, its elected and
        appointed officials,employees or volunteers by reason of any allegation of illegal use or misuse
        ofBS&Asoftware or a violation of the licensing agreement by SAFEbuilt.

8.0 MISCELLANOUS INVENTORY & SUPPLIES

    8.1 SAFEbuilt shall supply all of its own office supplies and materials, including, but notlimited to, postage,
        paper, envelopes, letterhead and business cards. Any inventory orsupplies not specifically set out in this
        Agreement as included in any lease, rental or useprovisions shall be the responsibility of SAFEbuilt. Any
        time SAFEbuilt uses the name"City of Muskegon" or the City logo on letterhead, documents, envelopes,
        businesscards, or other printed materials, it must also include a SAFEbuilt designation approvedby the
        City.


9.0 TERM AND TERMINATION

    9.1 Term. This Agreement shall be effective on the December 01, 2013 or thirty (30) days after SAFEbuilt’s
        receipt of this fully executed agreement; whichever is later, (the"Effective Date") and shall terminate
        onNovember 30, 2016. At the end of the three (3) year period, and upon mutual agreement of theparties
                                                      Page 4 of 14 
 
 
        as approved by City Commission, this Agreement may be renewed for up to atwo (2) year period. This
        Agreement may also be terminated as provided inparagraph 9.3.

    9.2 Continuing Services Required. SAFEbuilt shall perform the Services inaccordance with this Agreement
        commencing on the Effective Date until suchServices are terminated or suspended in accordance with
        this Agreement. SAFEbuilt shall not temporarily delay, postpone, or suspend the performance of
        theServices without the written consent of the City Commission, City Manager, Director of Community
        Development or aperson expressly authorized in writing to direct SAFEbuilt's services.

    9.3 City Unilateral Termination. This Agreement may be terminated by the City forany or no reason upon
        written notice delivered to SAFEbuilt at least ninety (90)days prior to termination. In the event of the
        City's exercise of the right ofunilateral termination as provided by this paragraph:

                  9.3.1   Unless directed to continue performing work during the ninety (90) dayperiod prior to
                          termination or unless otherwise provided in any notice oftermination, SAFEbuilt shall
                          provide no further services and receive no compensation for any unauthorized
                          services rendered in connection withthis Agreement after receipt of a notice of
                          termination; and

                  9.3.2   All finished or unfinished documents, data, studies and reports preparedby SAFEbuilt
                          pursuant to this Agreement shall be delivered by SAFEbuiltto the City and shall
                          become the property of the City; and

                  9.3.3   SAFEbuilt shall submit to the City a final accounting and final invoice ofcharges for all
                          outstanding and unpaid Services and reimbursableexpenses performed prior to
                          SAFEbuilt's receipt of notice of terminationand for any services authorized to be
                          performed by the notice oftermination as provided by Section 9.3. Such final
                          accounting and finalinvoice shall be delivered to the City within thirty (30) days of the
                          date oftermination; thereafter, no other invoice, bill, or other form of statement
                          ofcharges owing to SAFEbuilt shall be submitted to or accepted by the City.

    9.4 Termination for Non-Performance. Should a Party to this Agreement fail tomaterially perform in
        accordance with the terms and conditions of thisAgreement, this Agreement may be terminated by the
        performing Party if theperforming Party first provides written notice to the non-performing Party
        whichnotice shall specify the non-performance, provide both a demand to cure thenon-performance and
        reasonable time to cure the non-performance, and state adate upon which the Agreement shall be
        terminated if there is a failure to timelycure the non-performance. For purpose of this Section 9.4,
        "reasonable time"shall be not less than five (5) business days. In the event of a failure to timelycure a
        non-performance and upon the date of the resulting termination for nonperformance,SAFEbuilt prepare
        a final accounting and final invoice of chargesfor all performed but unpaid Services and authorized
        reimbursable expenses.Such final accounting and final invoice shall be delivered to the City within
        fifteen(15) days of the date of termination; thereafter, no other invoice, bill, or otherform of statement of
        charges owing to SAFEbuilt shall be submitted to oraccepted by the City. Provided that notice of non-
        performance is provided inaccordance with this Section 9.4, nothing in this Section 9 shall prevent,or
        limit any claim or action for default or breach of contract resultingfrom non-performance by a Party.

    9.5 Unilateral Suspension of Services. The City may suspend SAFEbuilt'sperformance of the Services at
        the City's discretion and for any reason bydelivery of written notice of suspension to SAFEbuilt which
        notice shall state aspecific date of suspension. Upon receipt of such notice of suspension, SafeBuilt
        shall immediately cease performance of the Services on the date ofsuspension except: (1) as may be
        specifically authorized by the notice ofsuspension (e.g., to secure the work area from damage due to
        weather or tocomplete a specific report or study); or (2) for the submission of an invoice forServices
        performed prior to the date of suspension in accordance with thisAgreement.

    9.6 Reinstatement of Services Following City's Unilateral Suspension. The City mayat its discretion direct
        SAFEbuilt to continue performance of the Servicesfollowing suspension. If such direction by the City is
        made within (30) days of thedate of suspension, SAFEbuilt shall recommence performance of the
                                                      Page 5 of 14 
 
 
       Services inaccordance with this Agreement. If such direction to recommence suspendedServices is
       made more than thirty-one (31) days following the date ofsuspension, SAFEbuilt may elect to: (1)
       provide written notice to the City thatsuch suspension is considered a unilateral termination of this
       Agreementpursuant to Section 9.3; or (2) recommence performance in accordance withthis Agreement;
       or (3) if suspension exceeded sixty (60) consecutive days,request from the City an equitable adjustment
       in compensation or a reasonablere-start fee and, if such request is rejected by the City, to provide
       written notice tothe City that such suspension and rejection of additional compensation isconsidered a
       unilateral termination of this Agreement pursuant to Section 9.3.Nothing in this Agreement shall
       preclude the Parties from executing a writtenamendment or agreement to suspend the Services upon
       terms and conditionsmutually acceptable to the Parties for any period of time.

    9.7 Delivery of Notice of Termination. Any notice of termination permitted by thisSection 9 and its
        subsections shall be deemed given as set out in Section 15.13of this Agreement titled "Notices".

10.0     INSURANCE
    10.1 Insurance Generally. SAFEbuilt shall obtain and shall continuously maintainduring the term of this
        Agreement insurance of the kind and in the amountsspecified as follows:

        The Contactor shall secure and maintain the following ("RequiredInsurance"):
           Worker's compensation insurance to cover obligations imposed byapplicable law for any employee
         engaged in the performance ofwork under this Agreement, and Employer's Liability insurancewith
         minimum limits of one hundred thousand dollars ($100,000)each accident, five hundred thousand
         dollar ($500,000) disease -policy limit, and one hundred thousand dollars ($100,000) disease- each
         employee. Evidence of qualified self-insured status maybe substituted for the worker's compensation
         requirements of thisparagraph.
            Commercial general liability insurance with minimum combinedsingle limits of one million dollars
         ($1,000,000) each occurrenceand two million dollars ($2,000,000) general aggregate. Thepolicy shall
         be applicable to all premises and operations. Thepolicy shall include coverage for bodily injury, broad
         form propertydamage (including completed operations), personal injury(including coverage for
         contractual and employee acts), blanketcontractual, independent Corporations, an Annual
         ContractAggregate Limit endorsement, and products and completedoperations. The policy shall
         contain a severability of interestprovision, and shall be endorsed to include the Municipalityincluding
         Architects and Engineers, all elected and appointedofficials, all employees and volunteers, boards,
         commissionsand/or authorities and their board members, employees, andvolunteers as additional
         insured. No additional insuredendorsement shall contain any exclusion for bodily injury orproperty
         damage arising from completed operations.
            Comprehensive Automobile Liability insurance with minimumcombined single limits for bodily injury
         and property damage of notless than of One Million Dollars ($1,000,000.00) each occurrencewith
         respect to each of SAFEbuilt's owned, hired and non-ownedvehicles assigned to or used in
         performance of the Services. Thepolicy shall contain a severability of interest’s provision.
         Suchinsurance coverage must extend to all levels of subcontractors.Such coverage must include all
         automotive equipment used in theperformance of the Agreement, both on the work site and off
         thework site, and such coverage shall include non-ownership andhired cars coverage. Such insurance
         shall be endorsed to namethe City as Certificate Holder and name the City, and its electedofficials,
         officers, employees and agents as additional insuredparties.
            Professional Liability (errors and omissions) Insurance with aminimum limit of coverage of One
         Million Dollars ($1,000,000) perclaim and annual aggregate. Such policy of insurance shall beobtained
         and maintained for one (1) year following completion ofall Services under this Agreement. Such policy
         of insurance shallbe endorsed to include the City as a Certificate Holder.

         The Required Insurance shall be procured and maintained withinsurers licensed and admitted in
         Michigan with an A- or betterrating as determined by Best's Key Rating Guide. All RequiredInsurance
         shall be continuously maintained to cover all liability,claims, demands, and other obligations assumed
         by SAFEbuilt.
                                                    Page 6 of 14 
 
 
    10.2 Additional Requirements for All Policies. In addition to specific requirementsimposed on insurance by
        this Section 10 and its subsections, insurance shallconform to all of the following:

                  10.2.1 Insurance carried or obtained by the City, its officers, or its employeesshall be in
                         excess of and not contributory insurance to that provided bySAFEbuilt; provided,
                         however, that the City shall not be obligated toobtain or maintain any insurance
                         whatsoever for any claim, damage, orpurpose arising from or related to this
                         Agreement and the Services. SAFEbuilt shall not be an insured party for any City-
                         obtained insurance policyor coverage.

                  10.2.2 SAFEbuilt shall be solely responsible for any deductible losses forRequired Insurance.

                  10.2.3 No policy of insurance shall contain any exclusion for bodily injury orproperty damage
                         arising from completed operations.

                  10.2.4 Every policy of insurance shall provide that the City will receive notice noless than
                         thirty (30) days prior to any cancellation, termination, or amaterial change in such
                         policy.

    10.3 Failure to Obtain or Maintain Insurance. SAFEbuilt's failure to obtain andcontinuously maintain
        policies of insurance in accordance with this Section 10 andits subsections shall not limit, prevent,
        preclude, excuse, or modify any liability,claims, demands, or other obligations of SAFEbuilt arising from
        performance ornon-performance of this Agreement. Failure on the part of SAFEbuilt to obtain andto
        continuously maintain policies providing the required coverage, conditions,restrictions, notices, and
        minimum limits shall constitute a material breach of thisAgreement upon which the City may
        immediately terminate this Agreement, or, atits discretion, the City may procure or renew any such
        policy or any extendedreporting period thereto and may pay any and all premiums in
        connectiontherewith, and all monies so paid by the City shall be repaid by SAFEbuilt to theCity
        immediately upon demand by the City, or at the City's sole discretion, the Citymay offset the cost of the
        premiums against any monies due to SAFEbuilt from theCity pursuant to this Agreement.

    10.4 Insurance Certificates. Prior to commencement of the Services, SAFEbuilt shallsubmit to the City
        certificates of insurance for all Required Insurance. Insurancelimits, term of insurance, insured parties,
        and other information sufficient todemonstrate conformance with this Section 10 and its subsections
        shall beindicated on each certificate of insurance. Certificates of insurance shall
        referenceSAFEbuiltContracted Services. The City may request and SAFEbuiltshall provide within ten
        (10) business days of such request a current certifiedcopy of any policy of Required Insurance and any
        endorsement of such policy.The City may, at its election, withhold payment for Services until the
        requestedinsurance policies are received and found to be in accordance with theAgreement.

11.0      OWNERSHIP OF DOCUMENTS

    11.1 Any work product, materials, and documents produced by SAFEbuilt pursuant tothis Agreement shall
        be and remains property of the City and shall not be madesubject to any copyright unless authorized by
        the City. SAFEbuilt hereby assignsto the City the copyright to all works prepared, developed, or created
        pursuant tothe Services outlined in this Agreement, including the rights to: (1) reproduce thework; (2)
        prepare derivative works; (3) distribute copies to the public by sale,rental, lease, or lending; (4) perform
        the works publicly; and (5) to display thework publicly. SAFEbuilt waives its rights to claim authorship of
        the works, toprevent its name from being used in connection with the works, and to preventdistortion of
        the works.

        Other materials, methodology and proprietary work used or provided by SAFEbuilt to the City not
        specifically created and delivered pursuant to the Servicesoutlined in this Agreementmay be protected
        by a copyright held by SAFEbuiltand SAFEbuilt reserves all rights granted to it by any copyright. The
        City shallnot reproduce, sell, or otherwise make copies of any copyrighted material,subject to the
        following exceptions: (1) for exclusive use internally by City staffand/or employees; or (2) pursuant to a
                                                      Page 7 of 14 
 
 
        request under the Michigan Freedom ofInformation Act, MCl 15.231 et. seq., or any Federal open
        records act, to theextent that such statutes apply; or (3) pursuant to law, regulation, or court
        order.SAFEbuilt waives any right to prevent its name from being used in connectionwith the Services.

    11.2 SAFEbuilt will be provided with a copy of the City's Freedom of Information Act("FOIA") policy. The
        City is responsible for responses to FOIA requests and SAFEbuilt shall not directly respond to any third
        parties regarding any received FOIArequests. Upon receipt of a FOIA request, SAFEbuilt shall
        immediately give thatrequest to the CityClerk. SAFEbuilt shall provide specific information requested by
        the City forresponse to the FOIA request by the date and time requested by the City Clerk orin a specific
        format is so requested by the City Clerk.

    11.3 If SAFEbuilt receives a claim for damages, a Summons or Complaint, asubpoena or other document
        concerning a request for money damages, a threatof a law suit, or any court action proceeding,
        SAFEbuilt shall immediately handdeliver these documents to the City Clerk along with copies of all
        relevant documents.

12.0      INDEPENDENT CONTRACTOR.

     12.1 SAFEbuilt shall perform the Services as an independent contractor and shall not bedeemed by virtue
         of this Agreement to have entered into any partnership, joint venture,employer/employee or other
         relationship with the City other than as a contracting partyand independent contractor.

13.0      CONFLICT OF INTEREST

    13.1 SAFEbuilt shall refrain from providing services to other persons, firms, or entities thatwould create a
        conflict of interest for SAFEbuilt with regard to providing the Servicespursuant to this Agreement.
        SAFEbuilt shall not offer or provide anything of benefit toany City official or employee that would place
        the official or employee in a position ofviolating the public trust as provided under the City Charter, City
        Code of Ordinance,state or federal statute, case law or ethical principles.

14.0      REMEDIES
    14.1 In addition to any other remedies provided for in this Agreement, and withoutlimiting its remedies
        available at law, the City may exercise the following remedialactions if SAFEbuilt substantially fails to
        perform the duties and obligations of thisAgreement. Substantial failure to perform the duties and
        obligations of thisAgreement shall mean a significant, insufficient, incorrect, or improperperformance,
        activities or inactions by SAFEbuilt. The remedial actions include:
                   14.1.1 Suspend SAFEbuilt's performance pending necessary corrective action asspecified by
                            the City without SAFEbuilt's entitlement to an adjustment inany charge, fee, rate, price,
                            cost, or schedule; and/or
                  14.1.2 Withhold payment to SAFEbuilt until the necessary services or correctionsin
                         performance are satisfactorily completed; and/or
                  14.1.3 Deny payment for those services which have not been satisfactorilyperformed, and
                         which, due to circumstances caused by SAFEbuilt, cannotbe performed, or if
                         performed would be of no value to the City; and/or
                  14.1.4 Terminate this Agreement in accordance with this Agreement.

      The foregoing remedies are cumulative and the City, in its sole discretion, may exerciseany or all of the
      remedies individually or simultaneously.

15.0      MISCELLANEOUS PROVISIONS

    15.1 No Waiver of Rights. A waiver by any Party to this Agreement of the breach ofany term or provision of
        this Agreement shall not operate or be construed as awaiver of any subsequent breach by either Party.
        The City's approval oracceptance of, or payment for, services shall not be construed to operate as
        awaiver of any rights or benefits to be provided under this Agreement. Nocovenant or term of this
                                                      Page 8 of 14 
 
 
        Agreement shall be deemed to be waived by the Cityexcept in writing signed by the City Commission or
        by a person expressly authorizedto sign such waiver by resolution of the City Commission of the City
        and any writtenwaiver of a right shall not be construed to be a waiver of any other right or to be
        acontinuing waiver unless specifically stated.

    15.2 No Waiver of Governmental Immunity. Nothing in this Agreement shall beconstrued to waive, limit, or
        otherwise modify any governmental immunity thatmay be available by law to the City, its officials,
        employees, contractors, oragents, volunteers or any other person acting on behalf of the City and,
        inparticular, governmental immunity afforded or available pursuant to the MichiganGovernmental
        Immunity Act, MCL 691.1401, et. seq.

    15.3 Affirmative Action.SAFEbuilt will not discriminate against any employee orapplicant for employment
        because of race, color, religion, sex or national origin.SAFEbuilt will take affirmative action to ensure
        applicants are employed, andemployees are treated during employment without regard to their race,
        color,religion, sex or national origin. Such action shall include, but not be limited to thefollowing:
        employment, upgrading, demotion or transfer; recruitment orrecruitment advertising; layoff or
        termination; rates of payor other forms ofcompensation; and selection for training, including
        apprenticeship.

    15.4 Binding Effect. The Parties agree that this Agreement, by its terms, shall bebinding upon the
        successors, heirs, legal representatives, and assigns.

    15.5 No Third Party Beneficiaries. Nothing contained in this Agreement is intended toor shall create a
        contractual relationship with, cause of action in favor of, or claimfor relief for, any third party, including
        any agent, Sub-consultant or subcontractorof SAFEbuilt. Absolutely no third party beneficiaries are
        intended bythis Agreement. Any third-party receiving a benefit from this Agreement is anincidental and
        unintended beneficiary only.

    15.6 Governing Law, Venue, and Enforcement. This Agreement shall be governed byand interpreted
        according to the law of the State of Michigan. Venue for anyaction arising under this Agreement shall be
        in the County of Muskegon. If there is any conflict between the language of this Agreement andany
        exhibit or attachment, the language of this Agreement shall govern.

    15.7 Survival of Terms and Conditions. The Parties understand and agree that allterms and conditions of
        the Agreement that require continued performance,compliance, or effect beyond the termination date of
        the Agreement shall survivesuch termination date and shall be enforceable in the event of a failure to
        performor comply.

    15.8 No Assignment. Neither Party shall assign all or part of the rights, duties,responsibilities, obligations,
        and/or benefits set forth in this Agreement to anotherparty or entity without prior written approval of the
        Parties.

    15.9 Paragraph Captions. The captions of the paragraphs are set forth only for theconvenience and
        reference of the Parties and are not intended in any way todefine, limit or describe the scope or intent of
        this Agreement.

    15.10 Integration and Amendment. This Agreement represents the entire andintegrated agreement between
        the City and SAFEbuilt, limited to the City’s Rental Registration Program and Environmental Code
        Compliance, as defined in the Scope of Services, and supersedes all priornegotiations, representations,
        or agreements, either written or oral, unlessspecified herein. Any amendments to this must be in writing
        and be signed byboth the City and SAFEbuilt.

    15.11 Severability. Invalidation of any of the provisions of this Agreement or anyparagraph sentence, clause,
        phrase, or word herein or the application thereof inany given circumstance shall not affect the validity of
        any other provision of thisAgreement.


                                                       Page 9 of 14 
 
 
    15.12 Incorporation of Exhibits. Unless otherwise stated in this Agreement, exhibits,applications, or
        documents referenced in this Agreement shall be incorporatedinto this Agreement for all purposes. In
        the event of a conflict between anyincorporated exhibit and this Agreement, the provisions of this
        Agreement shallgovern and control.

    15.13 Notices. Unless otherwise specifically required by a provision of this Agreementany notice required or
        permitted by this Agreement shall be in writing and shallbe deemed to have been sufficiently given for
        all purposes if sent by certified mailor registered mail, postage and fees prepaid, addressed to the Party
        to whomsuch notice is to be given at the address set forth below or at such other addressas has been
        previously furnished in writing, to the other Party. Such notice shallbe deemed to have been given when
        deposited in the United States Mailproperly addressed to the intended recipient.

            If to the City:                                      If to SAFEbuilt:
            Director of Community and Economic                   Mike McCurdie, President
            Development-                                         SAFEbuilt Corporate Offices
            City of Muskegon                                     3755 Precision Drive, Suite 140
            PO Box 536 / 933 Terrance Street                     Loveland, CO 80538
            Muskegon, MI 49440
            With Copy to:                                        With Copy to:
            John C. Schrier                                      David Thomsen, Vice President
            Parmenter O’Toole Attorneys at Law                   SAFEbuilt Corporate Offices
            601 Terrace Street                                   3755 Precision Drive, Suite 140
            Muskegon, MI 49440                                   Loveland, CO 80538



16.0     SPECIAL PROVISIONS

    16.1 Indemnification and Hold Harmless. To the fullest extent permitted by law, SAFEbuilt shall be liable for
        and shall defend, save, indemnify, and hold harmless the City, its elected and appointed officials,
        employees and volunteers and others working on behalf of the City, from and against any and all claims,
        demands, suits, costs (including reasonable legal costs), expenses, and liabilities by reason of personal
        injury, including bodily injury or death and/or property damage to the extent that any such injury, loss or
        damage is caused by the negligence or breach of duty of SAFEbuilt or any officer, employee,
        representative, or agent of SAFEbuilt. At no time does the City waive its right to governmental
        immunity.

    16.2 Force Majeure. Neither SAFEbuilt nor the City shall be liable for any delay in, orfailure of performance
        of, any covenant or promise contained in this Agreement,nor shall any delay or failure constitute default
        or give rise to any liability fordamages if, and only to extent that, such delay or failure is caused by
        "forcemajeure." As used in this Agreement, "force majeure" means acts of God, acts ofthe public
        enemy, unusually severe weather, fires, floods, epidemics,quarantines, strikes, labor disputes and
        freight embargoes, to the extent suchevents were not the result of, or were not aggravated by, the acts
        or omissions ofthe non-performing or delayed party.

    16.3 Authority. The individuals executing this Agreement represent that they areexpressly authorized to
        enter into this Agreement on behalf of City andSAFEbuilt and bind their respective entities.

    16.4 SB 313. In the event that Senate Bill 313 is passed into law by the legislature of Michigan, the parties
        both have the option to renegotiate the terms of this contract as it pertains to enforcement of the rental
        registration provisions of the City Code of Ordinances.




                                                     Page 10 of 14 
 
 
THIS AGREEMENT is executed and made effective as provided above.

City of Muskegon, MI                             SAFEbuiltMichigan, Inc.


_________________________________                _________________________________
Signature                                        Signature

Name: ___________________________                Name: ___________________________

Title: ____________________________              Title: ____________________________

Date: _________/_________/_________              Date: _________/_________/_________




_________________________________
ATTEST Signature

_________________________________
Name / Title

Date: _________/_________/_________




                                            Page 11 of 14 
 
 
EXHIBIT A: Scope of Services
Administrative Services
  Provide onsite administrative staff
  Provide front counter services during City Hall business hours
  Answer questions at the counter or over the phone and provide ongoing communication as needed
  Review and provide handouts at the counter
  Provide input, tracking, and reporting using the City’s current system (BS&A)
     Upon SAFEbuilt service start date all Environmental Code Compliance Case identification numbers;
        Rental Program identification numbers will incorporate a prefix that signifies case or registration was
        generated under this agreement.
  Implement performance measurements to ensure mutually agreed upon service levels
  Review applicable ordinances and provide verbiage to facilitate improvement of content for City
    Commission approval
  Work with the City Clerk to facilitate Freedom of Information Act (FOIA) requests
  Report directly to the position of Director of Community and Economic Development
  Attend required meetings including City and Planning Commissions
  Attend required staff level meeting with City staff, public officials, community leaders, and the public
  Submit monthly activity and compliance reports to the Director of Community and Economic
    Development
Rental Program & Environmental Code Compliance Services
  Monitor and enforce applicable City adopted ordinances
      Article VI – Property Maintenance Code will be enforced with the exception of Section 10-303 (not
         currently enforced) and Section 10-335
  Environmental code compliance focus will be residential “grasses, trash, and leaves”
  Act as an educator of ordinances and regulations as adopted or amended, so that citizens and
     businesses understand requirements and time frames for becoming compliant
  Document areas of non-compliance using written records, electronic communications, photographs or
     other appropriate means
  Prepare and maintain all materials for any court action in a form approved by the court, City ordinance,
     and State statute
  Attend court sessions – as required
  Prepare and maintain all reports, issue citations and other documents for action
  Prepare and distribute invoicing with regards to rental and environmental code compliance to citizens,
     tenant and/or owners
  Go through existing records , provide clean up, and then make sure department is facilitating the proper
     retention of records in accordance with adopted retention schedules on an ongoing basis
  Provide training for our inspectors on City of Muskegon ordinances and amendments
Inspection Services
   Provide rental inspections as mutually scheduled with tenant and/or owner and provide follow-up as
     required
   Patrol to identify violations of City Environmental Code Ordinances, especially focused on residential
     violations such as overgrown vegetation; trash and debris; grass and terrace violations
   Responds to and investigate environmental code violation complaints within 48 hours and provide
     follow-up as required
   Respond to and investigate terrace violations with 24 hours and provide follow-up as required
   Contact, inform, and warn tenants and/or owners of identified violations and compliance deadlines
   Issue citations, violation notices, and follow-up letters on violations of applicable City ordinances
   Observe safety and security procedures and report potentially unsafe conditions
   Notify appropriate city staff when we observe vacant/dangerous buildings
Administrative Front Counter Services
  Provide a qualified team member to facilitate front counter administration
  Determine and collect fees and fines
  Provide inspection coordination, scheduling and tracking
                                                  Page 12 of 14 
 
 
     Provide customer service
     Respond to citizen complaints and communicate effectively with citizens

SAFEbuilt Provides
SAFEbuilt would propose leasing former Civil Service space from the City of Muskegon and will provide:
  Vehicles, vehicle maintenance, and insurance
  All hiring expenses
  Ongoing training and certification of employees
  Office supplies and business papers
  All office furniture and equipment –including copier and desk phones.
  Office computer hardware and software
  Cell phones and usage

City Provides
City of Muskegon will:
   Provide the former Civil Service space for lease to SAFEbuilt at the rate of $200.00 per month. This
      lease rate includes all utilities except for land lines for phone.
   Allow SAFEbuilt to service other W. Michigan communities from the leased space within City Hall
   Negotiate in good faith with regard to selling and/or include in the lease for space; existing cubicle
      dividers, desks, file cabinets, shelves, tables, floor mats and wall document holders that are currently in
      the Civil Services space
   Absorb costs associated with the electronic storage of service related records – SAFEbuilt will facilitate
      the conversion and storage process if so desired by the City
   Provide SAFEbuilt access to water billing records and assessors data in order to help find unregistered
      rental properties
   Issue citations through the city attorneys’ office when provided with documentation from SafeBuilt of
      evidence from an investigation into an ordinance violation. 




                                                    Page 13 of 14 
 
 
      

EXHIBIT B: Fee Schedule
SAFEbuilt’s fees are all inclusive with no separate billing for:
  Wages/Benefits
  Mileage/Vehicle Expense
  Materials
  Disbursement (copying, telephone rates, courier services)

Fee Schedule
Year One – December 1st, 2013 through November 30t, 2014 - billed monthly in the amount of $34,170 per
month.

Year Two – December 1st, 2014 through November 30th, 2015 – 3% increase over year one amount - billed
monthly in the amount of $35,195 per month.

Year Three – December1st, 2015 through November 30th, 2016 – 3% increase over year two amount - billed
monthly in the amount of $36,251 per month

Hourly rate - $70.00 per hour – if meets specifications outlined in section 3.3 – hourly rate subject to 3%
annual increase.

Responsibilities
The City of Muskegon is responsible for unreimbursed costs associated with these rental program and
environmental code compliance services on all cases, registrations and complaints prior to December 01,
2013 or thirty (30) days after SAFEbuilt’s receipt of this fully executed agreement; whichever is later(the
"Effective Date")

SAFEbuilt is responsible for unreimbursed costs on residential private lots (Non - City, County and Land
Bank lots) associated with environmental code compliance services on all cases, registrations and complaints
after December 01, 2013or thirty (30) days after SAFEbuilt’s receipt of this fully executed agreement;
whichever is later(the "Effective Date").

Unreimbursed costs include:
  Residential lot clean-up
  Residential lot mowing
  Yard clean-up/mowing
  Yard clean-up/trash

Net Revenue Volume Discount
The net revenue generated from this agreement willnot count toward the total for the annual volume discount
incentive as called for in the City of Muskegon/SAFEbuilt Professional Services Agreement for building
department services that was effective November 01, 2012.

Rental Program Revenue
If revenue during an agreement year from rental properties exceeds $160,000; then the City of Muskegon and
SAFEbuilt will split any revenue greater than $160,000 equally. Fees included in this calculation are:
   Housing–Warrant Inspection
   Late Fee on Rental Registration
   Rental Property Non-Compliance
   Rental Property Registration
   Rental Property Inspection No-Show
                                                   Page 14 of 14 
 
 
         Commission Meeting Date: November 12, 2013




Date:         November 5, 2013
To:           Honorable Mayor & City Commission
From:         Planning & Economic Development Department
RE:           Next Michigan/West Michigan Economic
              Partnership- Interlocal Agreement for the West
              Michigan Economic Development Partnership


SUMMARY OF REQUEST: The West Michigan Economic Partnership (WMEP)
Board is prepared to recommend Next Michigan zones for our jurisdictions at their
next meeting on November 13, 2013. Once approved by the WMEP, the zones will
be forwarded to the Michigan Economic Development Corporation (MEDC) for final
approval. Once the zones are approved, the MEDC, as well as local entities, may
start marketing them for development. In addition, the WMEP is expected to receive
a marketing grant from MEDC to assist with its efforts. The zone recommended for
Muskegon starts at the Mart Dock property and proceeds to the Verplank property,
along the shoreline. It is anticipated that additional land may be added in the future
(i.e., the Consumers Energy parcel/s).

FINANCIAL IMPACT: WMEP has established a budget of $69,314 for a two-year
period. Each of the five participating municipalities will be responsible for $9,862.80.
In Muskegon’s case, we have commitments from Mart Dock, Verplank, Consumers
Energy, the County and the City to meet the budget.

BUDGET ACTION REQUIRED: None.

STAFF RECOMMENDATION: To recommend approval to the WMEP for the Next
Michigan Zone for Muskegon, as depicted on the attached map. The zone starts at
Mart Dock on the West and proceeds along the Muskegon Lake shoreline to the
Verplank property on the East.
DATE:        11/12/2013

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order
             to Demolish. Dangerous Building Case #: EN130114


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
224 W GRAND AVE is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.

Case# & Project Address: # EN130114 - 224 W GRAND AVE (All Structures)

Location and ownership: This structure is located on W. Grand Ave. between 6th
and 7th Streets and is owned by SHIELDS MARGARETTA/CHRISTOPHER.

Staff Correspondence: A dangerous building inspection was conducted on
10/24/12. The Notice and Order to Repair was issued on 8/26/2013. On
10/03/2013 the HBA declared the structure substandard and dangerous.

Owner Contact: The owners were not present for the HBA meeting dated
10/03/2013 but a neighbor came in and spoke in favor of declaring this a
dangerous building. All notices sent to the owners as certified mail have returned
unclaimed and the notices sent to the County Treasurer were signed with the
card returned. No permits have been issued and no inspections scheduled.

Financial Impact: CDBG Funds

Budget action required: None

State Equalized value:     $ 42,000

Estimated cost to repair: $ 26,000 (this does not include the interior the cost for
interior)

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
                                  CITY OF MUSKEGON
                             CODE COMPLIANCE DEPARTMENT
                                 933 TERRACE ST STE 202
                                  MUSKEGON, MI 49440
                                   (231) 724-6766 (Office)
                                    (231) 724-6790 (Fax)

                             DANGEROUS BUILDING REPORT


                                       224 W GRAND AVE
                                           10/24/2012


Inspection noted:

Exterior Inspection:
   1) Roof has shingles that are deteriorated and need replacing.
   2) All areas of trim have peeling paint that needs to be scraped and needs to be protected
       from weather by properly applied water-resistant paint or waterproof finish.
   3) No electric meter – electricity must be turned on so it can be tested prior to issuance of a
       certificate of compliance.
   4) East side electric box – east side electric box is hanging by the wires.
   5) East side basement window is broken
   6) Areas of siding has holes, missing or rotted.
   7) Rear doorway has been closed off and the material used does not blend with the rest of
       the siding.
   8) Rear window has been closed off and the material used does not blend with the siding.
   9) Backyard – there was an above ground pool that is no longer there, with a deck built
       around it. This is not safe and must be removed or made to be safe.
   10) Backyard has furniture in the yard where the pool was.
   11) Concrete pad – there is a drop off at the edge of the concrete pad. This is not safe, please
       make safe by a guardrail or steps with handrails/ This type of repair will need a permit.
       Please call SAFEBuilt (231) 724-6715 with any questions and to obtain the permit.
   12) Sections of fencing – there are sections of fencing that are damaged or missing. Please
       repair/rebuild/or remove. Repairing or replacing may need a permit. Please call the
       Zoning Administrator at (231) 724-6702 to see if you need a permit.
   13) The interior was locked and the inspector could not inspect the inside for the rental
       inspection process.

Dan Cannady, Code Compliance Inspector

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN
DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A DANGEROUS
AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF THE
MUSKEGON CITY CODE.
224 W Grand photos taken by Code Compliance Inspector 




                                                          
 




                                                          
 




                                             
DATE:        11/12/2013

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order
             to Demolish. Dangerous Building Case #: EN130044


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
850 TURNER AVE is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.

Case# & Project Address: # EN130044 - 850 TURNER AVE (All Structures)

Location and ownership: This structure is located on Apple Ave. between
Kenneth and Holt Streets and is owned by PONIROS QUITITES LLC.

Staff Correspondence: A dangerous building inspection was conducted on
5/09/2013. The Notice and Order to Repair was issued on 6/25/2013. On
8/01/2013 the HBA declared the structure substandard and dangerous.

Owner Contact: No one was present for the HBA meeting dated 8/01/2013. All
notices sent certified mail have returned unclaimed. No permits have been
issued and no inspections scheduled.

Financial Impact: CDBG Funds

Budget action required: None

State Equalized value:     $ 12,300

Estimated cost to repair: $ 40,500

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
                                CITY OF MUSKEGON
                           CODE COMPLIANCE DEPARTMENT
                               933 TERRACE ST STE 202
                                MUSKEGON, MI 49440
                                 (231) 724-6766 (Office)
                                  (231) 724-6790 (Fax)

                            DANGEROUS BUILDING REPORT


                                      850 TURNER AVE
                                          5/09/2013


Inspection noted:

   1. The roof is deteriorated and needs to be completely replaced.
   2. Windows are missing/boarded
   3. The soffit is damaged/missing
   4. The doors are missing or needs replacement
   5. The steps are deteriorated and deed replacing.
   6. Floor Joists are in need of repair/replacement
   7. Foundation has cracks or is missing in places
   8. Dry wall is missing thoughout the home
   9. Plumbing is missing or needs replacing
   10. The entire structure needs to be properly scraped and painted.

John Schultz, Code Compliance Inspector

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN
DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A DANGEROUS
AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF THE
MUSKEGON CITY CODE.
                                                                     
Front of home 




                                                                 
Rear of home                        Side of home – no meter 




                                                                
Front of home (left)                Front of home (right)
DATE:         11/12/2013

TO:           Honorable Mayor and Commissioners

FROM:         Jeffrey Lewis, Director of Public Safety

RE:           Concurrence with the Housing Board of Appeals Notice and Order
              to Demolish. Dangerous Building Case #: EN130022


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
860 EMERSON AVE (GARAGE ONLY) is unsafe, substandard, a public
nuisance and that it be demolished within thirty (30) days. It is further requested
that administration be directed to obtain bids for the demolition of the structure
and that the Mayor and City Clerk be authorized and directed to execute a
contract for demolition with the lowest responsible bidder.

Case# & Project Address: # EN130022 - 860 EMERSON AVE (GARAGE
ONLY)

Location and ownership: This structure is located on Emerson Ave. between
Kinglsey and Madison Streets and is owned by WILLIS ARIEAL.

Staff Correspondence: A dangerous building inspection was conducted on
3/19/2013. The Notice and Order to Repair was issued on 6/25/2013. On
8/01/2013 the HBA declared the structure substandard and dangerous.

Owner Contact: No one was present for the HBA meeting dated 8/01/2013.
Three notices were sent certified mail with one having been returned unclaimed
and two that were signed. No permits have been issued and the scheduled
inspections with SAFEBuilt have been no-shows. There was a note from May
2013 that the owner planned on obtaining a permit, but nothing has been
obtained.

Financial Impact: CDBG Funds

Budget action required: None

State Equalized value:      $ 7,900 for the garage only

Estimated cost to repair: $ 10,000 - $12,000 for the garage only.

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
                                CITY OF MUSKEGON
                           CODE COMPLIANCE DEPARTMENT
                               933 TERRACE ST STE 202
                                MUSKEGON, MI 49440
                                 (231) 724-6766 (Office)
                                  (231) 724-6790 (Fax)

                           DANGEROUS BUILDING REPORT


                           860 EMERSON AVE (GARAGE ONLY)
                                      3/19/2013


Inspection noted:

       1. There are a lot of holes in the roof.
       2. The roof is totally deteriorated and must be replaced.
       3. Entire garage – has peeling paint that needs to be scraped properly and protected from
           the weather by properly applied water-resistant paint or waterproof finish.
       4. Garage overhead, sliding or swing door is broken or missing parts so it may not work
           properly.
       5. Structure is not secured.
       6. Side door is broken or missing.
       7. The eave boards are rotted or missing
       8. Siding has holes in it or is rotted or missing
       9. Windows are either broken, rotted, or missing.
       10. Trash is being stored inside the garage
       11. Garage is not maintained in good repair.




John Schultz, Code Compliance Inspector

BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN
DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A DANGEROUS
AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF THE
MUSKEGON CITY CODE.
Dangerous building is for the garage only on this property.
DATE:        11/12/2013

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order
             to Demolish. Dangerous Building Case #: EN130079


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
1324 PINE ST is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.

Case# & Project Address: # EN130079 - 1324 PINE ST (All Structures)

Location and ownership: This structure is located on Pine St. between
McLaughlin and Catawba Avenues and is owned by GRIDER TEASHEONA U.

Staff Correspondence: A dangerous building inspection was conducted on
8/13/2013. The Notice and Order to Repair was issued on 8/26, 2013. On
10/03/2013 the HBA declared the structure substandard and dangerous.

Owner Contact: No one was present for the HBA meeting dated 10/03/2013.
Certified notices were sent out with one being returned unclaimed, the second
was signed and the envelope was returned as “return to sender” and the third
notification was signed with only the certified mailing card being returned. No
permits have been issued and no inspections scheduled.

Financial Impact: CDBG Funds

Budget action required: None

State Equalized value:     $ 23,804

Estimated cost to repair: $ 53,000

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
                                    SAFEbuilt
                                   Building Department Services
                                      933 Terrace St., Ste 204
                                       Muskegon, MI 49443


GRIDER TEASHEONA U
347 SHONAT #38
MUSKEGON, MI 49442

Dangerous Building Inspection Completed 08/15/2013

Please find the following items that need to be addressed in order to obtain a Certificate of
Occupancy for 1324 PINE ST and clear the property from the Dangerous Building process.

      Roof needs replacement
      Needs bathroom renovated
      Needs kitchen renovated
      Needs foundation repaired
      Needs new drywall
      Has fire damage to floor joists
      Rewire house to code
      Replace electric service to code
      Install smoke alarms to code
      Re-plumb whole house
      Provide all new mechanical (i.e. furnace, water heater, etc)

If you have any questions please contact SAFEbuilt at 231-724-6715

Thank you,



Kirk Briggs
Building Official
SAFEbuilt/City of Muskegon
1324 Pine – Pictures provided by Code Compliance Inspector, Board up Contractor &SAFEbuilt 




                                                                                                   
 




                                                                                           
 




                                                                                               
 
1324 Pine – Pictures provided by Code Compliance Inspector, Board up Contractor &SAFEbuilt 




                                                                                           




                                                                                               




                                                                                           




                                               
DATE:        11/12/2013

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order
             to Demolish. Dangerous Building Case #: EN130143


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
1459 TERRACE ST is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.

Case# & Project Address: # EN130143 - 1459 TERRACE ST (All Structures)

Location and ownership: This structure is located on Terrace St. between Irwin
and E. Grand Avenues and is owned by CENTER FOR COMMUNITY JUSTICE
& ADVO.

Staff Correspondence: A dangerous building inspection was conducted on
11/30/2011. The Notice and Order to Repair was issued on 8/26/2013. On
10/03/2013 the HBA declared the structure substandard and dangerous.

Owner Contact: No one was present for the HBA meeting dated 10/03/2013. One
certified mail notice was returned and the other was signed with the certified
mailing card be sent back. No permits have been issued and no inspections
scheduled.

Financial Impact: CDBG Funds or General Fund (Depending on State Historic
Preservation Office Determination)

Budget action required: None/If General Fund (already budgeted)

State Equalized value:     $ 37,799

Estimated cost to repair: $ 21,000 - $34,000

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
                                 CITY OF MUSKEGON
                            CODE COMPLIANCE DEPARTMENT
                                933 TERRACE ST STE 202
                                 MUSKEGON, MI 49440
                                  (231) 724-6766 (Office)
                                   (231) 724-6790 (Fax)

                            DANGEROUS BUILDING REPORT


                                      1459 TERRACE ST
                                          11/30/2011


Inspection noted:

Exterior Items Only:
   1) Roof is totally deteriorated – Must be replaced
   2) Operable Windows do not have screens – must cover the complete bottom sash from
       April 30th thru September 30th
   3) Broken Windows – There are windows that are broken or have cracked glass.
   4) Peeling Paint – Exterior has peeling paint that needs to be scraped and needs to be
       protected from the weather by properly applied water-resistant paint or waterproof finish.
   5) Siding is rotted, has holes in it or is missing.
   6) Fencing is not in good repair. When repairing use materials that match balance of fence.
       Permit is required. Contact the Zoning Administrator at (231) 724-6702 for information.
   7) The yard is full of trash, debris and clutter – must be cleaned.
   8) Interior – No access was given for an interior rental inspection of this duplex.




BASED UPON A RECENT INSPECTION OF THE ABOVE PROPERTY, IT HAS BEEN
DETERMINED THAT THE STRUCTURE MEETS THE DEFINITION OF A DANGEROUS
AND/OR SUBSTANDARD BUILDING AS SET FORTH IN SECTION 10-61 OF THE
MUSKEGON CITY CODE.
1459 Terrace – Pictures provided by the Code Compliance Inspector 




                                                                          




                                                                      




                                                                      
 
DATE:        11/12/2013

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order
             to Demolish. Dangerous Building Case #: EN130184


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
868 W HACKLEY AVE is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.

Case# & Project Address: # EN130184 - 868 W HACKLEY AVE (All Structures)

Location and ownership: This structure is located on W Hackley Ave. between
Kinsey and Crowley Streets and is owned by DEKUIPER DONNA C/BEACH
DANIELLE N.

Staff Correspondence: A dangerous building inspection was conducted on
8/19/2013 by the Fire Marshall & Building Official. The Notice and Order to
Repair was issued on 8/20/2013. On 10/03/2013 the HBA declared the structure
substandard and dangerous.

Owner Contact: No one was present for the HBA meeting dated 10/03/2013. All
notices sent certified mail have been signed with the certified mail card being
returned. No permits have been issued and no inspections scheduled.

Financial Impact: CDBG Funds

Budget action required: None

State Equalized value:     $ 34,259

Estimated cost to repair: $ 24,000

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
868 W Hackley – Interior pictures were provided by SAFEbuilt 8/19/2013. 
 




                                                                                
 




                                                                                
 




                                                                            
 
868 W Hackley – Interior pictures were provided by SAFEbuilt 8/19/2013. 
 




                                                                                                   
                                                    




                                                                                                       
 




                                                 
Staff took pictures of the exterior & to show the Fire Marshall posted the front of the house (large white 
posting in the front window). 
DATE:        11/12//2013

TO:          Honorable Mayor and Commissioners

FROM:        Jeffrey Lewis, Director of Public Safety

RE:          Concurrence with the Housing Board of Appeals Notice and Order
             to Demolish. Dangerous Building Case #: EN110189


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the structure located at
345 W GRAND AVE is unsafe, substandard, a public nuisance and that it be
demolished within thirty (30) days. It is further requested that administration be
directed to obtain bids for the demolition of the structure and that the Mayor and
City Clerk be authorized and directed to execute a contract for demolition with
the lowest responsible bidder.

Case# & Project Address: # EN110189 - 345 W GRAND AVE (all structures

Location and ownership: This structure is located on Apple Ave. between 7th and
6th Streets and is owned by BLUE MOUNTAIN HOMES LLC.

Staff Correspondence: A dangerous building inspection was conducted on
10/24/2011 & interior was done on 10/11/2013. The Notice and Order to Repair
was issued on 10/31/2011. On 2/02/2012 the HBA declared the structure
substandard and dangerous.

Owner Contact: No one was present for the HBA meeting dated 2/02/2012. All
notices sent certified mail and signed for by the owner at the time (Bank of
America). A new owner purchased the property 1/02/2013 and made contact with
SAFEbuilt as to what to do to proceed. SAFEbuilt did an interior inspection on
10/11/2013 and the owners are looking into demolition for this property as well
due to the expense of what needs to be fixed. No permits have been issued.

Financial Impact: CDBG Funds

Budget action required: None

State Equalized value:     $ 19,900

Estimated cost to repair: $ 30,000

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
                                                                                            
                                                                         Building Department Services 

 

10/11/2013

BLUE MOUNTAIN HOMES LLC
707 ALDRIDGE RD STE B
VACAVILLE, CA 95688

RE: 345 W GRAND AVE

DANGEROUS BUILDING INTERIOR INSPECTION

The SAFEbuilt Building Dept. conducted an interior inspection at 345 W GRAND AVE to determine what
was needed to bring the building up to code and be able to issue a certificate of occupancy.

Below are the inspection results:
     Must fix front steps and porch decking.
     Must fix soffit and fascia around exterior of house.
     Fix back roof and rafters.
     Fix cut joists in the basement.
     Replace the foundation walls.
     Fix the beams in the basement.
     Install hard wired smoke alarms to code.
     Repair and replace the basement steps and handrail to code.
     Fix the stairway head room to code.
     Replace broken windows.
     Install guard rails and hand rail on stairs to 2nd floor to code.
     Electric service to meet code.
     Whole house to be re-wired to code.
     Must pressure test gas line.
     Clean ductwork.
     Inspect and certify chimney.
     Provide furnace and water heater.
     Inspect and certify all house plumbing, water service, building sewer and venting.
     Provide scald free faucet for tub/shower and lavatory.
     Any work done to meet 2012 MMC 09 MPC.

Please contact our office with any questions.

Sincerely,


Kirk Briggs
Building Official
SAFEbuilt/City of Muskegon




             933 TERRACE ST., STE. 204, MUSKEGON, MI  49443 
         
             (231)724‐6715                              FAX (231) 728‐4371 

 
                                        CITY OF MUSKEGON
     933 Terrace St., P.O. Box 537, Muskegon, MI 49443 (231) 724-6715
                    DANGEROUS BUILDING INSPECTION REPORT
                                        Monday, October 24, 2011

Enforcement # EN110189            Property Address 345 W GRAND AVE
Parcel #24-205-419-0001-10                 Owner W R ENTERPRISES LLC

Inspector: Henry Faltinowski

Date completed: 10/21/2011

DEFICENCIES:

1. Roof system failed; structural damage. Replace roof covering; provide
rafter sheathing inspection.
2. Porch on back of home caving in.

Request interior inspection by all trades, electrical, mechanical and plumbing.
Please contact Inspection Services with any questions or to schedule an
inspection at 933 Terrace St., Muskegon, MI 49440 (231) 724 6758.

Based upon my recent inspection of the above property I determined that the structure
meets the definition of a Dangerous Building and/or Substandard Building as set forth in
Section 10-61 of the Muskegon City Code.

_____________________________                         _______________
Henry Faltinowski, Building Inspector                      Date




Picture of front taken 2/4/2013
Side picture 10/21/2011         Other side 10/21/2011




Rear picture taken 10/21/2011
DATE:         11/12/2013

TO:           Honorable Mayor and Commissioners

FROM:         Jeffrey Lewis, Director of Public Safety

RE:           Concurrence with the Housing Board of Appeals Notice and Order
              to Demolish. Dangerous Building Case #: EN130036


SUMMARY OF REQUEST: This is to request that the City Commission Concur
with the findings of the Housing Board of Appeals that the demolition of the 2nd
garage that was not completed (concrete still there) at 709 E APPLE AVE is
unsafe, substandard, a public nuisance and that it be completed within thirty (30)
days. It is further requested that administration be directed to obtain bids for the
demolition of the structure and that the Mayor and City Clerk be authorized and
directed to execute a contract for demolition with the lowest responsible bidder.

Case# & Project Address: # EN130036 - 709 E APPLE AVE (complete removal
            of concrete from the 2nd garage’s demolition)

Location and ownership: This structure is located on Apple Ave. between
Kenneth and Holt Streets and is owned by CHIAVERINI MARK W.

Staff Correspondence: (memo attached) This item went through the process
twice due to the time lapse.

Owner Contact: No one was present for the HBA meetings. All notices sent
certified mail have been signed by the owner with the mortgage company ones
being returned unclaimed. A permit had been obtained during the first round, but
not completed.

Financial Impact: CDBG Funds

Budget action required: None

State Equalized value:      $ 13,600

Estimated cost to repair: $ 500

Staff Recommendation: To concur with the Housing Board of Appeals decision
to demolish.
Memo regarding Staff Correspondence.

1st Round:
       1. Notice & Order sent 10/17/2007
       2. HBA Hearing – 12/6/2007
       3. Determination mailed 12/7/2007
       4. City Commission – 4/22/2008
       5. City Commission concurred but gave time for the owner until 8/10/2008
       6. Owner (Mark Chiaverini) obtained permit to fix the garage 8/8/2008
          a. Permit extended 6 months on 7/6/2009
          b. Permit expired 7/6/2009 & letter went out 7/21/2009
          c. Somehow owner demoed most of the garage except for the
              concrete and removal of the misc. items with no notations for this
              on the permit.
       7. Somehow this stopped at this point.
       8. 2/4/2013 SAFEbuilt went thru the dangerous building list to confirm
          where the dangerous building structures were currently at and had
          taken pictures.
       9. City Attorney, John Schrier, recommended that we start the process
          again due to the time lapse.

2nd Round:
      1. Notice & Order sent 4/25/2013
      2. HBA Hearing letter sent for meeting on 6/6/2013 – owner came in and
         that was how we later found out that there had been a 2nd garage. We
         had thought the dangerous building was the garage that is still located
         on the property. This item was removed from the agenda.
      3. HBA Hearing 8/1/2013 (we knew it was for 2nd garage and SAFEbuilt
         found that the concrete and misc. items were still there so the demo
         was not completed by the owner. HBA Concurred at this meeting.
      4. Kirk from SAFEbuilt checked on this to find the concrete to still be
         there and had taken pictures.
      5. City Commission meeting 11/12/2013

The owner did not show up for the HBA hearing for this 2nd round & he is aware
that the demo is not complete until all the foundation is removed. The owner has
been receiving the certified mailings and is aware that we will go for bid to have
the demo completed and bill him for it.

The pictures are attached to show the process.
                                                                               2nd garage
                                                                               that had
                                                                               hole in roof
                                                                               prior to
                                                                               owner’s
                                                                               demo.




Picture of the 2nd garage that was located to the rear of the garage that is still
located on the property. This picture was taken 9/25/2007.

Pictures after the owner demolished the main portion of the garage. These are
pictures of the concrete and other misc. items from the demo.

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