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CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 27, 2010
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
CALL TO ORDER:
PRAYER:
PLEDGE OF ALLEGIANCE:
ROLL CALL:
HONORS AND AWARDS:
A. Presentation of Sign – Rev. George M. Bennett Blvd.
INTRODUCTIONS/PRESENTATION:
CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. City of Muskegon Operations Management Contract: Smith Ryerson
Community Center, Pastor Gregory M. Kirksey Picnic Shelter and Smith
Ryerson Park Grounds. PLANNING & ECONOMIC DEVELOPMENT
C. Rezoning Request for a Portion of the Property Located at 721 E.
Laketon Avenue. PLANNING & ECONOMIC DEVELOPMENT
D. CDARS Investment Alternative. FINANCE
E. Liquor License Request for Harbour Towne Yacht Club, 3425 Fulton
Street. CITY CLERK
F. Resolution Revoking the IFT Certificate for Northern Machine Tool.
PLANNING & ECONOMIC DEVELOPMENT
G. Approval of Contractor for Construction of House at 1543 Hoyt.
COMMUNITY & NEIGHBORHOOD SERVICES
H. Farmers Market ADA Restroom Renovations. PUBLIC WORKS
PUBLIC HEARINGS:
A. Request for an Industrial Facilities Exemption Certificate – AFI
Machining. PLANNING & ECONOMIC DEVELOPMENT
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
NEW BUSINESS:
A. Ice Mountain Grant – Ryerson Creek Culvert Replacement. PLANNING
& ECONOMIC DEVELOPMENT
B. Building Healthy Communities Grant – Lighting in Clara Shepherd Park.
PLANNING & ECONOMIC DEVELOPMENT
C. Approval of Contractor for Lead Abatement and Rehabilitation of CNS
Homes. COMMUNITY & NEIGHBORHOOD SERVICES
D. City Charter Amendments – Tax Levy. CITY MANAGER
ANY OTHER BUSINESS:
PUBLIC PARTICIPATION:
Reminder: Individuals who would like to address the City Commission shall do the following:
Fill out a request to speak form attached to the agenda or located in the back of the room.
Submit the form to the City Clerk.
Be recognized by the Chair.
Step forward to the microphone.
State name and address.
Limit of 3 minutes to address the Commission.
(Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
CLOSED SESSION:
ADJOURNMENT:
ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who
want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann
Marie Becker, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or TDD:
(231) 724-4172.
Date: July 27, 2010
To: Honorable Mayor and City Commissioners
From: Ann Marie Becker, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes for the July 12th
Commission Worksession Meeting and the July 13th City Commission
Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
City of Muskegon
City Commission Worksession
July 12, 2010
City Commission Chambers
5:30 PM
MINUTES
2010-60
Present: Commissioners Warmington, Gawron, Carter, Spataro, Wierengo, Shepherd, and Wisneski.
Absent: None.
Liability Claim: Theresa Lopez.
Moved by Commissioner Carter, seconded by Commissioner Wierengo to approve the liability
claim for Theresa Lopez in the amount of $25,000 as recommended by the Michigan Risk
Management Authority.
ROLL CALL VOTE:
Ayes: Wierengo, Wisneski, Carter, Gawron, Shepherd, Spataro, and Warmington.
Nays: None.
MOTION PASSES.
Commemorative Street naming of First Street between Muskegon and Webster.
Moved by Commissioner Shepherd, seconded by Commissioner Carter to authorize staff to prepare
two signs and install one at the intersection of First and Muskegon and present the other sign to the
surviving family member of Reverend George M. Bennett.
ROLL CALL VOTE:
Ayes: Wisneski, Carter, Gawron, Shepherd, Spataro, Warmington and Wierengo.
Nays: None.
MOTION PASSES.
Request for Contribution from the Muskegon Area Chamber of Commerce – Community Service
Improvement Plan Feasibility Study.
Moved by Commissioner Carter, seconded by Commissioner Wierengo to contribute $1,000 for a
Community Service Improvement Plan Feasibility Study.
ROLL CALL VOTE:
Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo, and Wisneski.
Nays: None.
MOTION PASSES.
De-energizing 37 Streetlights and Installing Four New Ones
Moved by Commissioner Spataro, supported by Commissioner Gawron to authorize staff to enter
into an agreement with Consumer Energy to de-energize 37 City owned streetlights along Moses J.
Jones Parkway and install 4 new cobra headlights at the intersection of Bayou and Marquette as
outlined in the agreement.
ROLL CALL VOTE:
Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo, Wisneski, and Carter.
Nays: None.
MOTION PASSES.
Proposal to Reduce Streetlight Expense.
Discussion took place on how to reduce lighting costs. Two options presented are:
1. Removal of unnecessary midblock streetlights on both major and local streets.
2. Turn off power to unnecessary midblock streetlights on both major and local streets.
A proposal will be given at a future City Commission meeting.
Towing Contract.
The existing towing contract has been extended 60 days. Public Safety Director, Tony Kleibecker,
discussed the bid with Commissioners.
Any Other Business.
Commissioner Spataro stated there are some turn lanes in the downtown area that are not being used
correctly.
Mohammad Al-Shatel, Department of Public Works Director, indicated there is a plan in place to remedy
the situation.
Pat Montney, 925 Irwin, requested some time with the City Commission to discuss how the City will
handle HUD programs.
Janessa Smitt, Chamber of Commerce, thanked the Mayor and Commission for supporting the
Community Service Improvement Plan Feasibility Study.
Adjournment.
Motion by Commissioner Carter, seconded by Commissioner Shepherd to adjourn at 6:45 p.m.
MOTION PASSES
________________________
Ann Marie Becker, MMC
City Clerk
CITY OF MUSKEGON
CITY COMMISSION MEETING
JULY 13, 2010
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, July 13, 2010.
Mayor Warmington opened the meeting with a prayer from Elder 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 Warmington, Vice Mayor Stephen Gawron,
Commissioners Sue Wierengo, Steve Wisneski, Chris Carter, Clara Shepherd, and
Lawrence Spataro, City Manager Bryon Mazade, City Attorney John Schrier, and
City Clerk Ann Marie Becker.
2010-61 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes for the June 7th Commission
Worksession Meeting and the June 22nd City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. City-MDOT Agreement for the Reconstruction of: Laketon Avenue from
250’ East of Barclay to Beidler and 250’ of Henry Street South of Laketon.
ENGINEERING
SUMMARY OF REQUEST: Approve the contract with MDOT for the reconstruction
of Laketon Avenue between Barclay and Beidler and Henry Street south of
Laketon and approve the resolution authorizing the Mayor and City Clerk to sign
the contract.
FINANCIAL IMPACT: MDOT’s participation is limited to the federal funds of
$688,900 (81% of eligible cost). The estimated total construction cost is $951,600.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approve the contract and resolution authorizing the
Mayor and Clerk to sign both.
C. De-energizing 37 Street Lights and Installing Four New Ones.
ENGINEERING
SUMMARY OF REQUEST: Authorize staff to enter into an agreement with
Consumers Energy to de-energize 37 City-owned street lights along Moses Jones
(Muskegon Avenue and Webster Avenue) from Spring to Bayou Street and to
install 4 new cobra head lights; 2 at the intersection of Bayou and 2 at the
intersection of Marquette.
The cost to the City is $2,315 and anticipated savings is $638.34 per month.
FINANCIAL IMPACT: $2,315 which would be paid out of the street light budget.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To authorize staff to enter into an agreement with
Consumers Energy to perform the work outlined in the summary of request and
the letter from Consumers Energy.
D. Approval of Neighborhood Stabilization Program Authorizing
Resolution. COMMUNITY & NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the authorizing resolution for an additional
$1,000,000 in Neighborhood Stabilization Program (NSP) funds and instruct the
Community and Neighborhood Services department to submit the resolution to
the Michigan State Housing Development Authority (MSHDA).
The authorizing resolution is part of the application request to MSHDA for
additional NSP funds.
FINANCIAL IMPACT: If the application request is approved, the CNS office will
have $1,000,000 in additional NSP funds to help with community development.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the authorizing resolution and direct the
Mayor and Clerk to sign the resolution.
COMMITTEE RECOMMENDATION: The City Commission approved for CNS to
apply for an additional $1,000,000 of NSP funds from MSHDA at the June 22nd
Commission Meeting.
E. Contract for Excavation of 510 White. COMMUNITY & NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve for Community and Neighborhood Services
to execute a contract with Press’s LLC, 8081 Holton Duck Lake Road, Holton, for
the demolition of the structure located at 510 White. This activity is under the
Neighborhood Stabilization Program. The bid is for $3,260, which was the lowest
bid. The City received one additional Bid:
• Franklin Contractors, 961 E. Barney, Muskegon for $6,800.
FINANCIAL IMPACT: The funding will be allocated from the City’s NSP Grant.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request.
F. Contract for Excavation of 1680 Hoyt. COMMUNITY & NEIGHBORHOOD
SERVICES
SUMMARY OF REQUEST: To approve for Community and Neighborhood Services
to execute a contract with Press’s LLC, 8081 Holton Duck Lake Road, Holton, for
the demolition of the structure located at 1680 Hoyt. This activity is under the
Neighborhood Stabilization Program. The bid is for $4,385, which was the lowest
bid. The City received one additional bid:
• Franklin Contractors, 961 E. Barney, Muskegon for $6,800.
FINANCIAL IMPACT: The funding will be allocated from the City’s NSP Grant.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the request.
G. Sign Sponsorship Agreement with Habitat for Humanity for
Neighborhood Stabilization Program Houses COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve for the Community and Neighborhood
Services office to give Muskegon County Habitat for Humanity two properties at
461 Marquette and 510 White and to have Cathy Brubaker-Clarke sign into a
Sponsorship Agreement with them, using Neighborhood Stabilization Program
(NSP) funds to build two new homes, for a maximum of $40,000 for each home.
The CNS office has been working with Muskegon County Habitat for Humanity to
join into partnership for these two NSP projects. We have purchased the
properties. After demolition, we will give the properties to Habitat; they will build
new homes on these properties using NSP funds and volunteers. They will then
sell these homes to two families at or below 50% AMI.
FINANCIAL IMPACT: These two projects will be using NSP funds and we will meet
our goal of using 25% of our funds to sell to at or below 50% AMI families.
Nothing will come out of the General Fund.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
COMMITTEE RECOMMENDATION: The City Commission has already approved
for the CNS office to apply for additional NSP funds.
H. MML Workers’ Compensation Fund Board of Trustees Ballot. CITY CLERK
SUMMARY OF REQUEST: Authorization to vote for the seven incumbent Trustees
to serve as Trustees of the Michigan Municipal League Workers’ Compensation
Fund.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
I. Special Event Request for Muskegon Bike Time Events Inc. (3rd Annual
Event). COMMUNITY & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Muskegon Bike Time Events Inc. has filed a special
events application for the annual Bike Time festival in downtown Muskegon on
July 16, 17, and 18, 2010. They have requested the waiver of some City
equipment rental fees. They have also requested to use their own labor pool
rather than City employees whenever possible.
FINANCIAL IMPACT: Request that equipment rental fees be waived. In
exchange, Bike Time will provide a pre-negotiated amount of beverage tent
wristbands. The exchange will be coordinated with the City Manager.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: It is recommended that staff be allowed to make
the final decision regarding rental fees, actual costs, and/or exchange of
concert tickets, to be coordinated through the City Manager. In addition, staff
recommends that if Bike Time picks up items such as picnic tables, bleachers,
and trash cans for distribution at the proper locations, there will be no charge to
Bike Time. This must first be approved by City staff.
It is also recommended that City staff review staffing levels for City personnel
with the Bike Time staff, with the City making the final decision on the number of
City staff needed for the event. These recommendations follow what was done
for the 2009 event.
COMMITTEE RECOMMENDATION: None. This item was not presented to the
Leisure Services Board, as that board was dissolved prior to the submission of this
special event application.
J. Viridian Drive Extension: Agreement for the Donative Conveyance of
Real Property Between the City of Muskegon and Viridian Properties,
LLC, Agreement for the Donative Conveyance of Real Property
Between the City of Muskegon and Parkland Acquisitions, LLC;
Amendment. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: These documents were approved at the June 22, 2010
Commission Meeting. Since that time, the property owners have requested that
#6b be removed from the “Donative Conveyance” documents. This item
pertains to land division issues, which GVSU and the City of Muskegon will be
responsible for.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the amendment to the two “Donative
Conveyance” Agreements between the City and Viridian Properties, LLC and
the City and Parkland Acquisition, LLC and authorize the Mayor and Clerk to
sign the Agreements, as well as any other necessary documents (as outlined in
the Agreement) to complete the project.
K. Liquor License Request for 435 & 441 W. Western Avenue. CITY CLERK
SUMMARY OF REQUEST: The Liquor Control Commission is seeking local
recommendation on a request from Dave’s House, LLC (DBA – Club Envy) for a
New Outdoor Service (1 Area) to be held in conjunction with 2010 Class C-SDM
Licensed Business with Dance-Entertainment Permit located at 435 & 441 W.
Western Avenue, Muskegon, MI 49440, and a New Additional Bar Permit.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval contingent upon payment of the $25 fee.
L. Community Relations Committee Appointments. CITY CLERK
SUMMARY OF REQUEST: To accept the recommendations from the Community
Relations Committee made at the meeting held on July 12, 2010 as follows:
Appointments of Clayton Hardiman to the District Library Board and Dave
Wendtland to the Civil Service Commission.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Community Relations Committee
recommendations.
Motion by Commissioner Carter, second by Commissioner Spataro to approve
the Consent Agenda as read.
ROLL VOTE: Ayes: Carter, Gawron, Shepherd, Spataro, Warmington, Wierengo,
and Wisneski
Nays: None
MOTION PASSES
2010-62 NEW BUSINESS:
A. Request for Preliminary and Final Planned Unit Development Approval
for 1144 3rd Street. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request for preliminary and final Planned Unit
Development approval for 1144 3rd Street for a mixed-use commercial, retail
and residential development.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends preliminary approval of the PUD
and final approval of the PUD contingent upon conditions listed in the staff
report.
COMMITTEE RECOMMENDATION: At their June 10th meeting, the Planning
Commission recommended preliminary approval of the PUD and final approval
of the PUD along with the conditions listed in the staff report.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the PUD for 1144 3rd Street.
ROLL VOTE: Ayes: Gawron, Shepherd, Spataro, Warmington, Wierengo,
Wisneski, and Carter
Nays: None
MOTION PASSES
City Clerk Ann Marie Becker introduced Kati Houseman who is working in the
City Clerk’s office this summer.
ADJOURNMENT: The City Commission Meeting adjourned at 5:40 p.m.
Respectfully submitted,
Ann Marie Becker, MMC
City Clerk
Commission Meeting Date: July 27, 2010
Date: July 16, 2010
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: City Of Muskegon Operations Management
Contract: Smith Ryerson Community Center,
Pastor Gregory M. Kirksey Picnic Shelter And
Smith Ryerson Park Grounds
SUMMARY OF REQUEST: The Muskegon Recreational Center (MRC),
Inc. has been managing the Smith Ryerson Community Center since
July 2006. The management has been successful, with many area
youth (as well as others in the community) being served. As the current
Contract between MRC and the City concluded July 1, 2010, it is
recommended that a new two-year contract be approved. The new
Contract also includes maintenance and operation of the newly
constructed picnic shelter and maintenance of the park grounds. MRC
will also begin contributing 25% of their revenue towards utility costs.
FINANCIAL IMPACT: The Contract specifies that the Manager will
receive its management fee through the revenue generated at the
Center.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the attached Contract and
authorize the Director of Community & Economic Development and the
City Clerk signatures.
COMMITTEE RECOMMENDATION: None.
CITY OF MUSKEGON
OPERATIONS MANAGEMENT CONTRACT
SMITH RYERSON COMMUNITY CENTER, PASTOR GREGORY M. KIRKSEY
PICNIC SHELTER AND SMITH RYERSON PARK GROUNDS
This is a Contract, effective July 1, 2010, for the management of the entire operations,
management and promotion of the Smith Ryerson Community Center (“Center”), Pastor Gregory M.
Kirksey Picnic Shelter (“Shelter”) and Smith Ryerson Park (“Park”) grounds, made between the City of
Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440
(“City”) and Muskegon Recreational Center, Inc., a Michigan non-profit corporation, of 4564
Manchester Lane, Twin Lake, Michigan, 49457 (“Manager”).
Background
The City is the owner of the Center, the Shelter and Park grounds, located at 500 Wood Street,
Muskegon, Michigan, 49442. The Manager has provided the City with a proposal for its services to
manage the Center, the Shelter and Park grounds. In the event of any conflict, this Contract prevails over
any terms in the proposal. The proposal is attached as Exhibit A and is incorporated except as limited by
this Contract.
Therefore, the parties agree as follows:
1. Management; Operation; Maintenance; Improvements. The Manager agrees to
perform all acts and assume all responsibilities for the management, operation, maintenance and
improvements of the Center, as well as the Shelter on site. The Manager's responsibilities include, but are
not limited to, all operation of the buildings and their systems, complete maintenance thereof, repairs,
cleaning, snow removal, and improvements to the buildings and the premises necessary for the efficient,
timely and full operation thereof. In addition, the Manager shall be responsible for Shelter reservations,
maintenance of the park restrooms, providing toilet paper and restroom supplies, trash removal from trash
cans in the park to the dumpster, mowing and trimming the entire Smith Ryerson Park, providing trash
bags and graffiti removal within five (5) days from when it appears on all surfaces in the Park, with the
exception of cement and/or asphalt services. If graffiti appears on cement or asphalt services, the
Manager shall notify the City and the City will remove the graffiti. The Manager's responsibility shall
further include the retaining and hiring of all personnel or, if approved by the City, independent
contractors, for the purpose of carrying out all the responsibilities and functions of the Manager. The
Manager may make improvements to the facilities, upon written approval from the City. If improvements
are made, they must meet The Americans With Disabilities (ADA) Act. Also, all Michigan Occupational
Safety and Health Administration (MIOSHA) rules must be adhered to. The City is responsible for repair
and improvements to the Park grounds and facilities not related to the Center and the Shelter.
2. Expenses. The Manager shall pay on a timely basis, without incurring any cost of
default or penalties, all expenses, payroll, payroll taxes, benefits, taxes, if any, and costs of any kind
necessary or related to the complete performance of its responsibilities as Manager. The Manager shall
pay 25% of the revenue derived from facility rentals (including the Center and the Shelter) toward utility
costs. The City will pay the remainder of the utility costs.
3. Manager; Agency Status. The Manager shall carry on the responsibilities set forth
above, and all incidental or related performances, functions or acts, and shall pay all the said expenses and
costs, all on behalf of the City.
1
4. Level of Performance; Standards; Prices. The Manager's performance and assumption
of the responsibilities undertaken by this Contract shall be carried out and performed to the satisfaction of
the City, in its sole judgment and discretion. The Manager shall charge reasonable prices and fees for all
paid events and from all paid users, concessionaires and others, which shall be reviewed and adjusted by
the City at its option. In the case of the Shelter, the Manager shall charge the same fees and use the same
general rules as those used by the City for the other City park picnic shelters and individual picnic table
rentals.
5. Participants It is the intent of the City that the Center be used for programs involving
the youth of the City of Muskegon. The Manager shall keep a log of all participants using the Center,
their age group and their residence, and submit that report on a quarterly basis to the City’s Director of
Community & Economic Development. Use of the park and general use of the facilities is available free
of charge to the public. Reservations of facilities will entail a fee. Port City Football will be allowed to
use the Park at no charge, in order to conduct practices and hold games.
6. City of Muskegon Recreation Programming. The City will be allowed to use the
facility for summer programming during the week (Monday- Friday), if needed, at no charge. The City
will notify the Manager if usage is required. City staff will coordinate with the Manager to ensure the
building is maintained and in order for weekend rentals.
Quarterly Reports. The Manager shall provide City with quarterly reports detailing all
income and expenditures. Manager shall also provide the City with a copy of the participant log for the
Center on a quarterly basis.
Management Fee. For its management and maintenance services, the Manager shall be
entitled to keep seventy-five percent (75%) of any and all revenue generated at the Center and Shelter as a
management fee. The said management fee shall be the sole compensation to the Manager, and Manager
shall pay all the expenses contemplated by this Contract without further payments from the City.
Records; Audit of Financial Information. The Manager shall afford the City at
reasonable times every opportunity to examine its financial records, books, bank accounts, evidence of
receipts and expenses, invoices, any computer records, and any other information deemed appropriate by
the City in order to verify the receipts, uses and payment of funds by the Manager under this Contract.
For said purpose the Manager shall provide the City with all necessary means to access any computer
records, programs, systems, databases or other information. Copies of any information required by the
City, whether on paper or by computer media, as requested by the City, shall be afforded the City
immediately upon its request.
10. Possession; Termination. The parties agree that possession during the term of this
management contract remains with the City. The Manager shall act as an agent of the City, and its
presence and possession in the Center is carried on entirely on behalf of the City. This Contract shall not
be construed as a lease or to give Manager any property right whatsoever in the Center for any purpose.
In the event of lawful termination either before the term of this Contract or at the end thereof, Manager
shall vacate the premises without any notice or necessity of judicial proceedings.
11. Property; Termination. All portable property purchased by the Manager or donated to
the Manager shall be retained by the Manager when this Agreement terminates, with the exception that
any property left on the premises fourteen (14) days after termination shall be deemed to be the property
of the City. All property owned by the City and used by the Manager shall remain the property of the
City.
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12. Condition of the Premises and Property. On termination the Manager shall deliver all
the property and the premises to the Manager in good and useable condition, except for the effects of
ordinary wear and tear. Manager shall be immediately responsible for any repairs necessary to restore
any property, whether real or personal, fixtures or otherwise, to the said condition.
13. Term. The term of this Contract shall be two (2) years from the effective date, provided
that either party may terminate this Contract without cause, effective upon 60 days written notice to the
other party.
14. Insurance. The Manager shall obtain insurances required by the City in at least the
coverage amounts set forth below. In all the following coverages except workers’ compensation
insurance, the City shall be named as additional insured or loss payee, and each policy shall carry the
commitment by the company that no cancellation shall be effective against the City without thirty (30)
days written notice to the City:
14.1 Comprehensive general liability insurance. The Manager shall obtain a
comprehensive liability insurance policy through a company licensed to do
business in Michigan and acceptable to the City, carrying limits of at least
$3,000,000, single limit.
14.2 Workers’ compensation insurance. The Manager shall carry workers’
compensation insurance in the amounts required by state law.
14.3 Other insurances. Any insurances which are available and which are
especially appropriate for the operation of the Center, such as coverages
involving professional or amateur boxing and the like, covering liability and the
cost of injuries to persons and property shall be obtained by the Manager, with
liability coverages carrying at least a single limit of $1,000,000.
15. Insurance Notices. Cancellation Notice: Workers' Compensation Insurance and
Commercial General Liability Insurance, as described above, shall include an endorsement stating the
following: "It is understood and agreed that, in order to be effective, thirty (30) days' Advance Written
Notice of Cancellation, Non-Renewal, Reduction and/or Material Change shall be sent to:
City of Muskegon
Attn: City Manager
933 Terrace Street
P.O. Box 536
Muskegon, MI 49443-0536
16. Assignment. The Manager may not assign this Contract. Any attempted assignment or
change in entity of the Manager shall constitute a violation of this Contract and cause immediate
termination in the City's discretion.
17. Hold Harmless and Indemnity. To the fullest extent permitted by law, Manager agrees
to defend, pay in behalf of, indemnify, and hold harmless the City, its elected and appointed officials,
employees and volunteers and others working in behalf of it against any and all claims, demands, suits, or
loss, including all costs connected therewith, and for any damages which may be asserted, claimed or
recovered against or from the City, its elected and appointed officials, employees, volunteers or others
working in behalf of it, by reason of personal injury, including bodily injury and death and/or property
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damage, including loss of use thereof, which arises out of or is in any way connected or associated with
this Contract.
18. Duties of the City.
18.1 Lawn Mowing; Supplies. The City shall provide the Center with lawn mowing
equipment and dumpster/s.
18.2 Utilities. Interruption of utility service shall not result in any damages or claim
against the City. Manager covenants that it will not unnecessarily use the gas, utility, and water
utilities at the Center. If City determines, in its sole discretion, that Manager is using the utilities
in a wasteful manner, City shall have the right to charge the Manager for the excess utility costs.
18.3 Concession Stand. The City will be responsible for maintenance and repair of
the concession stand, as well as concession stand rentals.
19. General Provisions.
19.1 Independent Contractor. The Manager is an independent contractor
and not an employee of the City. Manager is responsible for all its own personnel and all
other expenses and costs as set forth in this Contract and shall not have recourse to the
City for any claims involving the said expenses or costs.
19.2 Corporate Status. Manager warrants that it is a Michigan non-profit
corporation in good standing and is authorized to perform this Contract.
19.3 Equal Employment Opportunity; Discrimination. The Manager shall not
discriminate unlawfully against any person in violation of any law or rule of the City, the
County, the State of Michigan or the federal government, in employment, services or any
other respect. The Manager shall comply in each and every way with the City of
Muskegon’s affirmative action plans or policies, and shall never discriminate against any
person based on race or any other protected status under the laws of the State or the
United States.
20. Defaults. Violation of any of the provisions of this Contract by the Manager, and failure
to remedy or cure such violation within thirty (30) days after written notice of such violation from the
City, shall constitute default by the Manager and constitute cause for immediate termination of this
Contract:
21. Non-Waiver. Failure to enforce any remedy for a breach or a violation of this Contract
shall not constitute waiver of subsequent breaches or violations.
22. Remedies of the Manager. In the event the City breaches this Contract in any way, or
the Manager determines that a breach or failure to observe any covenant or condition by the City has
occurred, the Manager's sole remedy shall be termination of this Contract. The Manager shall not be
entitled to any damages for breach of contract, or to any injunctive relief to enforce this Contract. In the
event there are sums legally due to the Manager at the time of such termination they shall be paid
forthwith, but no consequential damage or damages for breach shall be awarded or available to the
Manager.
23. Liens. The Manager shall be responsible for protecting the Center from any and all liens,
mortgages, security interests or claims for any interest in any property.
4
24. Counterparts. This Contract may be executed in counterparts, and each set of duly
delivered identical counterparts that includes all signatories shall be deemed to be one original document.
25. Governing Law. This Contract shall be construed and enforced in accordance with the
laws of the State of Michigan applicable to contracts made and to be performed within the State of
Michigan.
26. No Third Party Beneficiary. This Contract shall benefit only the parties to this
Contract, and not any third party.
27. Notices. All notices, approvals, consents and other communications required under this
Contract shall be in writing and, except when receipt is required to start the running of a period of time,
shall be deemed given: (i) when delivered in person; (ii) when sent by telephone facsimile or e–mail, (the
sender shall also mail or send a “hard copy” following the facsimile or e-mail, however, the notice shall
be effective upon the transmission of the facsimile or e-mail); (iii) one (1) day after depositing in the
custody of a nationally-recognized receipted overnight delivery service with delivery fees prepaid; or,
(iv) two (2) days after posting in the United States Mail, first-class. Notices shall be sent to the parties at
their address stated above.
MUSKEGON RECREATIONAL CENTER, INC.
By: ______________
Matt Kolkema, President
Dated:______________ ___, 2010
CITY OF MUSKEGON
By:__________________________________________
Cathy Brubaker-Clarke, Director of Community
& Economic Development
Dated: ______________ ___, 2010
By:__________________________________________
Ann Marie Becker, City Clerk
Dated: _______________ ___, 2010
5
Date: March 9, 2010
To: Honorable Mayor and City Commissioners
From: Finance Director
RE: CDARS Investment Alternative
SUMMARY OF REQUEST: With interest rates at historic low levels, it is getting quite difficult
to find safe, short-term investments that produce an appreciable yield for idle city cash. Bank CD’s
are one option, but investments over $250,000 are not covered by FDIC insurance. CDARS is a
program that allows institutional investors to invest larger amounts through one bank and receive
FDIC insurance on the full amount. The program works by breaking larger dollar investments into
smaller insurable pieces that are invested throughout the CDARS network (see attached). State
investment laws were amended in 2009 to permit governments to utilize CDARS.
Financial institutions participating in CDARS are mostly community banks. Our local community
banks have participated in CDARS but are not aggressively seeking CDARS deposits at this time.
The most aggressive CDARS bank in Michigan is Flagstar bank (Troy, MI).
FINANCIAL IMPACT: The CDARS program offers a safe, insured option to enhance interest
earnings on City funds.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Authorize staff to execute documents necessary for the City
to participate in the CDARS program. The City attorney has reviewed the documents for compliance
with state law.
COMMITTEE RECOMMENDATION: None.
1
How CDARS Works Page 1 of 2
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®
How CDARS Works
®
Everything is handled through a CDARS Network member of your choice.
Financial institutions that can offer CDARS are members of a unique network.
When you place a large deposit with a CDARS Network member, that institution
uses the CDARS service to place your funds into CDs issued by other members of
the CDARS Network. This occurs in increments below the standard FDIC insurance
maximum so that both principal and interest are eligible for FDIC insurance. By
working directly with just one institution, you can receive insurance coverage
from many. And, you receive just one regular consolidated account statement.
When you’re ready to take advantage of CDARS, here’s what happens:
You sign a CDARS Deposit Placement Agreement and invest money with
a member of the CDARS Network (a relationship institution).
Your funds are placed using the CDARS service.
Your CDs are issued by other members in the CDARS Network.
For more information, watch the
video How CDARS Works.
You receive confirmation of your CDs from your relationship institution.
You receive consolidated interest payments and statements through your
relationship institution.
For more information, watch the video How CDARS Works.
For general information, please check our FAQ page.
Limits apply. The standard FDIC insurance coverage amount is $250,000 per insured capacity per
bank through December 31, 2013. Thereafter, the standard FDIC coverage amount will revert to
$100,000 unless Congress further extends the higher coverage amount. Accordingly, for CDs that
mature on or before December 31, 2013, customer funds will be allocated to banks that are members
of the Promontory Network in amounts up to $250,000, and for CDs that mature after December 31,
2013, customer funds will be allocated in amounts up to $100,000.
The CDARS service has been designed to satisfy the FDIC’s requirements for pass-through deposit
insurance coverage.
If you are subject to restrictions with respect to the placement of funds in depository institutions, it is
your responsibility to determine whether the placement of your funds through CDARS satisfies those
restrictions.
When funds are exchanged on a dollar-for-dollar basis with other banks in the Network, a CDARS
Network member can use the full amount of a deposit placed through CDARS for local lending,
satisfying some depositors’ local investment goals/mandates. Alternatively, with your consent, the
member institution may choose to receive fee income instead of deposits from other Network
members. Under these circumstances, deposited funds would not be available for local lending.
http://www.cdars.com/howcdarsworks/default.aspx 7/20/2010
CDARS for Public Funds Page 1 of 1
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®
CDARS for Public Funds
®
Through the CDARS service, your government entity can have easy access to
multi-million-dollar FDIC insurance on its CD investments.
One Bank. Public-fund investors like you can access multi-million-dollar FDIC
insurance coverage by working directly with just one bank – one you know and
trust.
One Rate. Investors negotiate one rate for each CD maturity and enjoy the
option of reinvesting funds through a simple process.
One Statement. Investors receive one easy-to-read statement summarizing all
of their CD holdings.
By providing access to FDIC insurance, CDARS can help your public unit comply
with investment policy mandates. And with access to FDIC insurance, your
organization can say “goodbye” to ongoing collateralization requirements
(including tracking changing collateral values on a continuous basis). All of this
means you can devote more time to other activities in support of your public unit.
Read about what people say about CDARS for public-fund investors.
Forty-five states and the District of Columbia are CDARS-enabled:
Availability of CDARS for public-fund investors by state.
CDARS received very positive reviews in a March 8 Standard and Poor’s Credit
FAQ piece entitled, "What Effect Will The Certificate Of Deposit Accounts Registry
Service Program Have On Fund Ratings?” In the report, Standard and Poor’s
stated that, from a credit perspective, it deems CDs issued through CDARS to be
“AAA/A-1+” equivalent. Excerpts from the report are available at Crane Data.
Limits apply. If a depositor is subject to restrictions with respect to the placement of funds in
depository institutions, it is the responsibility of the depositor to determine whether the placement of
the depositor's funds through CDARS or a particular CDARS transaction satisfies those restrictions.
® SM
Public-fund deposits must be placed through a CDARS Reciprocal transaction to ensure that the
total dollar amount is maintained by the financial institution that offers CDARS.
Funds may be submitted for placement only after a depositor has signed a CDARS Deposit Placement
Agreement with a CDARS Network member. This agreement contains important information and
conditions regarding the placement of funds.
CDARS is a registered service mark of Promontory Interfinancial Network, LLC.
Home | Promontory Interfinancial Network, LLC | Terms & Conditions | Privacy Policy
© 2004-2010 Promontory Interfinancial Network, LLC. U.S. Patent No. 7,376,606, 7,440,914, 7,596,522, 7,603,307, and 7,640,199.
http://www.cdars.com/whycdars/cdarspublicfunds.aspx 7/20/2010
CDARS® Deposit Placement Agreement
You, the undersigned, and Section 1. Your Relationship With Us
___________________________________________________________________
Flagstar Bank, FSB (a) Agency and Custodial Relationship
___________________________________________________________________
5151 Corporate Dr., Troy, MI 48098 We have entered into a contract with Promontory pursuant to which we will use
(referred to in this agreement as “we” and “us”) are entering into this agreement to CDARS to assist us in endeavoring to place your funds at other Insured Institutions
set forth the terms and conditions under which we will assist you from time to time in that have also entered into contracts with Promontory. Pursuant to our contract with
placing your funds in time deposits with depository institutions (each an “Insured Promontory, we will adhere to Promontory’s policies and procedures in placing your
Institution”) whose accounts are insured by the Federal Deposit Insurance funds.
Corporation (“FDIC”). Through an arrangement with Promontory Interfinancial We will act as your agent in connection with the placement of your funds in CDs.
Network, LLC (“Promontory”), we will endeavor to place your funds in time deposits As set forth above, we will place your funds through a CDARS Reciprocal Transaction
(“CDs”) issued by Insured Institutions through Promontory’s Certificate of Deposit unless you agree to having your funds placed through a CDARS One-Way
Account Registry Service®, or CDARS®, in principal amounts that, when aggregated Transaction. Although we will act as your agent in connection with the place-
with interest to accrue over the term of the CD, will not exceed the Standard ment of your funds, we are not acting as your investment adviser and have no
Maximum Deposit Insurance Amount (“SMDIA”) for deposits of one depositor at one obligation to advise you of alternative investments available through CDARS or
Insured Institution (currently $100,000). Although certain “self-directed” retirement otherwise. Further, we make no representations with respect to the interest
accounts, such as IRAs, may be eligible for coverage under a higher FDIC insurance rates on deposits available on an Order Date through us or through CDARS,
limit (currently $250,000) for deposits of one depositor at one Insured Institution, CDs and we may receive greater benefits when we place your funds through one
for these retirement accounts will be placed using CDARS in amounts that will not type of CDARS transaction than when we do so through another type of CDARS
exceed the SMDIA. We will also act as your custodian with respect to your CDs pur- transaction or than we would if you instructed us to make a deposit other than
suant to the custodial agreement that we have separately entered into with you through a CDARS transaction.
(“Custodial Agreement”). The terms of our custodial relationship with you are set We will act as your custodian with respect to your CDs acquired through
forth in the Custodial Agreement. Funds held in an account with us pending place- CDARS. We have entered into an agreement with The Bank of New York to act as
ment through CDARS or resulting from payments on CDs are subject to the SMDIA our sub-custodian with respect to the CDs for which we are acting as your custodian.
applicable to your deposits with us and therefore may not be fully insured by the No physical certificates evidencing the CDs will be issued. Each CD for which we act
FDIC. as your custodian will be recorded on the records of the Insured Institution that issues
CDARS is a proprietary process owned by Promontory that allocates orders the CD in the name of our sub-custodian, will be recorded on the records of the sub-
submitted by participating financial institutions on behalf of their depositors on dates custodian in our name, and will be recorded on our records in your name, all in a
(“Order Dates”) specified by Promontory. On each Order Date participating institu- manner that will permit your CD to be FDIC insured to the same extent as if you held
tions submit orders requesting that Promontory allocate funds for their depositors to it directly with the Insured Institution. You will receive from us a written confirmation
Insured Institutions that are willing to accept deposits through CDARS. On the of the issuance of your CDs and periodic account statements that will reflect your
“Order Allocation Date” Promontory allocates orders submitted on the Order Date. ownership of your CDs. The confirmation of CD issuance and the account state-
CDARS offers different types of transactions through which we may place your ment(s) will be the only evidence that you will receive of your ownership of the CDs.
funds with Insured Institutions. In a “CDARS ReciprocalSM Transaction,” we receive You should retain the confirmation and the account statement(s) for your records.
funds for deposit in an amount equal to the amount of your funds that we have While we are acting as your custodian, (i) all payments with respect to the CDs
placed using CDARS with respect to the Order Date for which your Order was sub- by the Insured Institutions that issue the CDs will be made to us, and we will credit
mitted to Promontory, but we do not receive a fee. In a “CDARS One-WaySM the funds to an account or accounts you maintain with us or disburse the funds pur-
Transaction,” we do not receive funds for deposit, but we receive a fee from one or suant to your instructions, and (ii) you can enforce your rights in the CDs through us.
more Insured Institutions that received deposits through CDARS with respect to the You may not transfer the CDs directly to another custodian. At your election, you may
corresponding Order Date. Funds that we place for you through a CDARS transac- dismiss us as custodian, and your ownership of a CD may be recorded in your name
tion may be placed at an Insured Institution without regard to whether the Insured on the books of the Insured Institution that issued the CD. If you choose to have the
Institution is participating in CDARS on that Order Date through a CDARS Reciprocal CD maintained in your name on the books of the Insured Institution that issued the
Transaction or through a CDARS One-Way Transaction or otherwise. We will place CD, you will be able to enforce your rights in the CD directly against that Insured
your funds through a CDARS Reciprocal Transaction unless we notify you that Institution.
we will place your funds through a CDARS One-Way Transaction and you con- (b) Fees
sent to our doing so. If you wish to have us place your funds only through a You will not pay a fee in connection with your placement of funds. If we place your
CDARS Reciprocal Transaction, you may check a box provided for this pur- funds through a CDARS Reciprocal Transaction, we will pay a fee to Promontory for
pose at the end of this Agreement. If you do not check this box we will not using the CDARS order allocation services and certain other services. If we place
place your funds through a CDARS One-Way Transaction without your con- your funds through a CDARS One-Way Transaction, we and Promontory will receive
sent. fees from one or more Insured Institutions receiving deposits through CDARS in
This agreement sets forth important information about the placement process. respect of that Order Date. We may, in our discretion, waive some or all of our fee,
By signing this agreement you agree to be bound by its terms each time that you and Promontory may, in its discretion, waive some or all of its fee. We and
submit funds to us for placement. Please read it carefully. Some of the features of Promontory may receive different fees from different Insured Institutions in connection
the CDs and the placement process are: with the same transaction. Promontory may offer us and our employees non-cash
When we place your funds, you will be issued CDs by Insured Institutions that incentives in connection with our placement of funds through CDARS.
have entered into agreements with Promontory. (c) Limits on Placements
We will act as your custodian with respect to those CDs. Although we, through our arrangement with Promontory, will endeavor to place your
The CDs issued to you by Insured Institutions will have the interest rates and funds, on a particular Order Allocation Date Promontory may not be able to allocate
annual percentage yields (“APY”) you have agreed to with us. orders in a way that results in the placement of some or any of your funds. The allo-
You will not be charged a fee in connection with CD placements. cation process utilized by Promontory may reflect considerations of federal and state
You may select the maturities and payment terms of your CDs from those that law, funding needs of Insured Institutions, economic conditions, Promontory’s objec-
are available through CDARS at the time that you submit your funds for tives or other factors determined by Promontory in its sole discretion.
placement. If any of your funds cannot be placed, the unplaced funds will be returned to you.
You may designate any Insured Institution as ineligible to receive your funds. You may ask us to resubmit unplaced funds for placement through CDARS on anoth-
Early withdrawal of any CD you purchase may be available, but may be subject er day on which Promontory performs its allocation service.
to substantial penalties. (d) Each CD Will Be an Obligation of the Issuer
No secondary market for the CDs currently exists, but early withdrawal of any Each CD will be a deposit obligation of the Insured Institution that issued the CD and
CD you purchase is available, subject to applicable penalties. will not be, either directly or indirectly, our obligation or an obligation of Promontory.
04/07 DI 1
Your CD will not be issued until the issuing Insured Institution receives and accepts a CDARS Reciprocal Transaction as we would have incurred had we issued the CDs
your funds. directly to you.
(e) APY Any payments made or received by us, or fees received by Promontory, will not
If you are not a “consumer” for purposes of the Truth-in-Savings Act (“TSA”), or if our change the terms we have agreed with you for your CDs.
communication with you in connection with your placement of funds through CDARS (c) CDARS One-Way Transaction
is not an “advertisement” for purposes of TSA, we are not obligated to provide you On any Order Date, Promontory may receive commitments from Insured Institutions
with an APY on your CDs. wishing to receive funds through a CDARS One-Way Transaction. Based on these
(f) Mutual Institution Voting and Subscription Rights commitments, Promontory communicates to us the maximum amount of funds that
If a CD is issued to you by an Insured Institution in the mutual form of organization can be submitted for placement through CDARS One-Way Transactions in each CD
(“mutual institution”) for funds placed for you through CDARS, you may receive maturity on that Order Date.
through us a notice of a meeting of the depositor members of that mutual institution. If we place your funds through a CDARS One-Way Transaction, we will not
Because your CD is identified on the books of the mutual institution in the name of receive deposits on the Settlement Date, and we will not make or receive payments
the sub-custodian and not in your name, you will not be entitled to attend the meet- as described under “CDARS Reciprocal Transactions” above. Your funds may be
ing or vote by proxy. Under agreements that we have entered into with the sub-cus- placed at Insured Institutions that are submitting funds for placement through CDARS
todian that holds your CDs in its name on your behalf, the sub-custodian will forward Reciprocal Transactions or that have requested funds for deposit on that Order Date.
meeting notices to us (for delivery to you) but it will not attend the meeting or vote by As set forth above, we and Promontory each will receive a fee when we place
proxy. your funds through a CDARS One-Way Transaction, and we or Promontory may
It is possible that the mutual institution also may send notice of its intention to waive all or part of this fee. Any fees received by us or Promontory will not change
convert to a stock institution, and provide for priority, non-transferable subscription the terms we have agreed to with you for your CDs.
rights for depositor members of the mutual institution to purchase stock in the con-
version. Because of the nature of our agreement with the sub-custodian, your CD Section 3. Placement Procedures
will be identified on the books of the mutual institution in the name of the sub-custo- (a) Order Dates and Terms of CDs
dian, and not in your name, and thus, you will not be entitled to exercise any sub- Each time you notify us that you wish to place funds through CDARS, we will inform
scription right to purchase the stock, or to vote on the conversion. The sub-custodi- you of (i) the available Order Dates, (ii) the CD maturities and payment terms avail-
an, which will own the subscription right, also will not purchase any stock in the con- able on each Order Date, (iii) whether early withdrawal of the CDs is available and
version. whether any penalties (and processing fees, if applicable) will be imposed on you for
Accordingly, if you wish to receive meeting notices directly, attend meetings and early withdrawal, (iv) any limits with respect to placing funds and (v) whether we
vote (to convert from the mutual to stock form of ownership, form a mutual holding intend to submit the funds for placement through a CDARS One-Way Transaction.
company or otherwise) with respect to a CD you have acquired from a mutual institu- The terms and conditions available for CDs may change from time to time.
tion through CDARS, or wish to receive subscription rights in the event the mutual Each CD issued by an Insured Institution will have a principal amount that, when
institution converts from mutual to stock form, you will have to dismiss us as custodi- aggregated with interest to accrue during the term of the CD, will not exceed the
an prior to the applicable record date (a date usually at least a year in advance from basic FDIC insurance limit. You may obtain information about the terms of the CDs
the date the mutual institution’s board of directors adopts a plan of conversion) and made available through CDARS on an Order Date at www.CDARS.com/products.
have your ownership of the CD recorded in your name directly on the books of the The interest rates and APYs for the CDs we offer to obtain for you through
mutual institution that issued the CD. CDARS will be agreed upon by you and us. For placements through CDARS
Reciprocal Transactions, the interest rate and APY we agree upon with you will
Section 2. Promontory reflect the interest rate and APY we are willing to pay, after paying a fee to
(a) General Promontory. For placements through CDARS One-Way Transactions, the interest
Promontory is not your agent and is responsible solely to us for performing the serv- rate and APY we agree upon with you will reflect the interest rate and APY that
ices for which we have retained it. Promontory uses the proprietary process includ- Insured Institutions requesting funds through CDARS One-Way Transactions for that
ed in CDARS to allocate orders submitted on a specified Order Date by Insured Order Date are willing to pay after paying fees to Promontory and us.
Institutions to other Insured Institutions that are willing to accept deposits through Interest on your CDs will compound daily. Payment options may vary based on
CDARS. the maturity of the CD. You may have the option with some CDs to choose between
On an Order Allocation Date, Promontory uses the CDARS allocation process to monthly payments of interest and payment of interest at maturity or other available
propose placements of funds with Insured Institutions wishing to receive funds, sub- interest payment terms. In addition, depending on the terms and conditions of a par-
ject to your approval as set forth in the procedures set forth in Section 3 of this ticular CD, you may be able to change the payment terms of the CD during the term
agreement (“Placement Procedures”). CDs for funds placed through CDARS will be of the CD. If you choose to have interest paid to you during the term of the CD, you
issued to you on the business day immediately following the Order Allocation Date may not be able to re-invest the interest you are paid at an interest rate as favorable
(the “Settlement Date”). A “business day” means any day other than a Saturday, a to you as the interest rate paid on the CD.
Sunday or a day on which banks in New York, New York are authorized or required Each CD will earn interest from the day your funds are deposited at the Insured
by law or regulation to close. Institution that issues the CD up to, but not including, the day your CD matures. If
In addition to the fees payable to it in connection with CDARS Reciprocal the date on which a payment with respect to a CD is due is not a business day, that
Transactions and CDARS One-Way Transactions, Promontory may realize profits or payment will be made on the next business day.
incur losses in connections with the placement of your funds at one or more Insured (b) Presumption of CDARS Reciprocal Transaction
Insured Institutions on the terms you have selected. We will submit your funds for placement through a CDARS Reciprocal Transaction
(b) CDARS Reciprocal Transaction unless we inform you that we will place your funds through a CDARS One-Way
When we notify Promontory that we wish to submit your funds for placement through Transaction and you agree to our doing so. If we submit your funds for placement
a CDARS Reciprocal Transaction on an Order Date, we will agree to accept for through a CDARS One-Way Transaction and Promontory is not able to allocate our
deposit an equal or greater amount of deposits through CDARS. On the Settlement order, we may resubmit an order for your funds on that Order Date through a CDARS
Date, CDs will be issued to you and we will accept deposits placed by other partici- Reciprocal Transaction, unless you instruct us not to do so at the time you request
pating institutions. that we submit your funds. If we so resubmit your funds through a CDARS
Your funds may be placed at Insured Institutions that are submitting funds for Reciprocal Transaction, the CDs issued to you will have the same terms as the CDs
placement through a CDARS Reciprocal Transaction or at Insured Institutions that that would have been issued to you through the CDARS One-Way Transaction.
have requested deposits through CDARS with respect to the same Order Date. If you are a public funds depositor or a non-profit institution submitting funds for
When your funds are placed through a CDARS Reciprocal Transaction, we may placement and wish your funds to be placed only through CDARS Reciprocal
make or receive payments based upon the difference between the interest rate we Transactions, please inform us by checking the box at the end of this agreement.
have agreed upon with you for your CDs and the interest rate we pay on CDs that (c) List of Insured Institutions
we issue to customers of other Insured Institutions. These payments will be calculat- Each time you notify us that you desire to place funds through CDARS, you may
ed pursuant to a formula that uses the projected volume-weighted average interest obtain from us a list of Insured Institutions at which your funds may be placed. Not
rate for deposits placed through CDARS Reciprocal Transactions on the same day all of these Insured Institutions may be available to issue CDs with respect to an
your funds are placed. These payments are intended to provide us with the same Order Date, and, before the list is provided to you, we may have designated some
interest cost on the CDs we issue to depositors of other Insured Institutions through Insured Institutions as ineligible to receive funds from our depositors. You should
04/07 DI 2
review the list provided to you and inform us of the name(s) of any Insured claim or encumbrance, equal to the amount of funds you have informed us that you
Institution(s) at which you do not want to make a deposit, for any reason. At your are seeking to place. On the Settlement Date, your funds will be deposited at
option, you may also provide us with the names of Insured Institutions not then on Insured Institutions, payments to be made in connection with the placement of CDs
the list at which you do not want to make a deposit. Once you have informed us of will be made, and the CDs will be issued.
the name of an Insured Institution at which you do not want to make a deposit, your (h) Additions and Early Withdrawal
funds – whether submitted for placement through CDARS at the time you sign this No additions may be made to any CD. Insured Institutions impose a penalty on with-
agreement or in the future – will not be placed at that Insured Institution until you drawal of a CD prior to its maturity. However, no penalty will be charged for early
notify us in writing that funds may be placed in the Insured Institution. (For your con- withdrawal upon the death of an individual who is the sole account holder of the CD.
venience, at the time you sign this agreement you may indicate to us on Schedule 1 This exception applies to an individual who is the named account holder as well as
the names of Insured Institutions at which you do not want to make a deposit.) Upon an individual who is the sole current mandatory or discretionary income beneficiary of
your request, we will obtain from Promontory the list it maintains of Insured a trust, including the sole current beneficiary of a unitrust or annuity trust. Written ver-
Institutions at which you do not wish to make a deposit. As set forth below, you are ification acceptable to the Insured Institution that issued the CD may be required in
responsible for monitoring your deposits at each Insured Institution for purposes of such an event. We will inform you of the early withdrawal penalty applicable to your
FDIC insurance coverage. CDs when you submit funds for placement. For a CD with a term of 4 or 13 weeks,
(d) Request for Placement of Funds the early withdrawal penalty is equal to 28 or 90 days, respectively, of simple interest
When you request that we place your funds through CDARS, we will submit to calculated at the CD rate. The penalties for early withdrawal of 4 or 13 week CDs
Promontory a request for placement of your funds (an “Order”), including the type of are equivalent to substantially all of the interest that would have been earned over
CDARS transaction through which we are submitting the funds, the Order Date, the the full term and will invade principal. For a CD with a term of 26 weeks or longer,
amount of funds to be placed and the terms (including interest rate and APY) of the the early withdrawal penalty is equal to simple interest calculated at the CD rate for
CDs you are seeking. The Order will be in a form established by Promontory. In approximately half the number of days in the full term. The penalties for early with-
order for us to submit an Order, you must provide us with all information required by drawal of CDs with a term 26 weeks and longer are equivalent to half of the interest
Promontory no later than the time specified in paragraph 1 of Schedule 2. that would have been earned over the full term and may invade principal. The current
(e) Approval of Proposed Placements schedule of products available and applicable early withdrawal penalties may be
We will not know the name(s) of Insured Institution(s) at which your funds will be viewed at www.CDARS.com\products.
placed at the time we submit an Order for your funds. On each Order Allocation Pursuant to the Internal Revenue Code of 1986, as amended, the beneficiary of
Date for which we submitted an Order for your funds, we will make available to you a an Individual Retirement Account (“IRA”) (but not a Roth IRA) may incur a penalty if
list of the names of Insured Institutions at which your funds are proposed to be the beneficiary does not begin making withdrawals from the IRA after age 70-1/2. A
placed, the proposed deposit amount at each Insured Institution and the names of CD held in an IRA is not eligible for early withdrawal without penalty simply because
proposed alternate Insured Institutions at which your funds may be placed. You may the beneficiary must withdraw the CD to avoid a tax penalty.
obtain that list from us on the Order Allocation Date at or after the time specified in Early withdrawal of a CD may be made only in whole, not in part. You may
paragraph 3 of Schedule 2, and, at any time prior to the time specified in paragraph request early withdrawal by contacting us, at which time you may specify which of
4 of Schedule 2, you may notify us of the name or names of any of the proposed or your CDs you would like us to withdraw. If you choose not to specify which of your
proposed alternate Insured Institutions at which you do not want to make a deposit. CDs to withdraw, early withdrawals will be made using an automated process that
Although you may direct us not to place funds at a proposed or alternate proposed generates random selections based on amount. In general, early withdrawal pro-
Insured Institution, you cannot direct us to place funds at a specific Insured ceeds will be available to you two business days after we receive your early with-
Institution or specify the amount to be placed at any Insured Institution. drawal request.
If you eliminate one or more of the proposed or proposed alternate Insured Neither we nor Promontory will advance funds in connection with early with-
Institutions from the list, or if one or more of them becomes unavailable for place- drawals, and early withdrawal proceeds will not be available to you until they are paid
ment for any reason, your funds will be placed at the Insured Institutions that were to us by the Insured Institution that issued the CD being withdrawn.
not eliminated. If a sufficient number of proposed and proposed alternate Insured (i) No Automatic Renewal or Rollover
Institutions are eliminated or become unavailable so that not all of your funds can be The CDs will mature on the date shown on the confirmation of CD issuance. Upon
placed, only as much of your funds will be placed as can be deposited at the remain- maturity, the principal amount of, and unpaid accrued interest on, the CD will be paid
ing Insured Institutions in CDs with principal amounts that, when aggregated with to you. The CDs will not be automatically renewed or rolled over, and interest on the
interest to accrue during the term of the CDs, will not exceed the SMDIA. Your CDs will not continue to accrue after the maturity date. If upon maturity you wish to
remaining funds will not be allocated on the Order Allocation Date. In such case, we re-deposit your funds in CDs through CDARS, you must instruct us to re-submit the
will inform you of the amount of your funds that will not be placed and you may funds as a new placement or you must take advantage of our preauthorized re-sub-
request that we resubmit an Order for your unplaced funds on another Order Date by mission process.
repeating the procedure outlined above. (j) Preauthorized Re-submission
If in connection with any placement of your funds using CDARS, you eliminate a At the time you submit funds to us for placement through CDARS, you may request
proposed or proposed alternate Insured Institution in accordance with the above pro- that we re-submit those funds for placement through CDARS upon the maturity of
cedures, funds that you subsequently submit for placement will not be placed in that your CDs. Unless we have entered into a written re-submission arrangement with
Insured Institution until you notify us otherwise in writing. you, you must contact us before we re-submit your funds through CDARS to estab-
(f) Your Consent to Placement lish the new terms (including interest rate and APY) and the other specifics of your
Your funds will not be placed unless you have consented to their placement. You will Order for your re-submitted funds.
be deemed to have consented to the placement of your funds at the proposed or (k) No Physical Certificates
proposed alternate Insured Institutions as of the time specified in paragraph 4 of As set forth in Section 1, no physical certificate evidencing a CD will be issued. You
Schedule 2 if by that time you: should not purchase a CD through CDARS if you need to take physical possession
(i) communicate your approval to us; of a certificate.
(ii) do not request the list of proposed and proposed alternate Insured
Institutions from us; Section 4. Important Considerations
(iii) request the list of proposed and proposed alternate Insured Institutions (a) Compare Features
from us, but do not respond to the proposed list; or You should compare the rates of return and other features of a CD to other available
(iv) respond to the list of proposed and proposed alternate Insured deposit accounts before deciding to purchase CDs using the CDARS service.
Institutions by eliminating one or more of the Insured Institutions, in Although the CDs are issued by other Insured Institutions, the rates of interest paid
which case you will be deemed to have consented to the placement of on the CDs are determined by us based on (i) the interest rates and APYs we are
your funds at those Insured Institutions that you have not eliminated. willing to pay on deposits that we accept through CDARS on the Settlement Date (if
(g) Time by Which We Must Have Your Funds; Settlement of Transactions your funds are placed by us through a CDARS Reciprocal Transaction) or (ii) the
Unless we have made other arrangements, each time that you agree to a placement interest rate and APY that Insured Institutions that have requested funds through
of funds under this agreement you also agree that, by the time specified in para- CDARS One-Way Transactions for that Settlement Date are willing to pay after pay-
graph 5 of Schedule 2, you will have in an account with us immediately available ing fees to Promontory and us (if your funds are placed by us through a CDARS
funds, which under applicable law are irreversible and are not subject to any lien, One-Way Transaction). These rates may be higher or lower than the rates on
04/07 DI 3
CDs available through a CDARS One-Way Transaction (if we are placing your be insured up to the SMDIA and individual departments and political subdivisions
funds through a CDARS Reciprocal Transaction) or a CDARS Reciprocal within a governmental unit may be eligible for separate insurance if certain require-
Transaction (if we are placing your funds through a CDARS One-Way ments are met. The use of separate tax identification numbers by different depart-
Transaction) or on comparable deposits available directly from us, from ments or political subdivisions of the same governmental unit will not by itself cause
Insured Institutions that issue the CDs through CDARS, from other Insured the deposits of such departments or political subdivisions to be eligible for separate
Institutions, or from insured depository institutions not participating in FDIC insurance.
CDARS. It is the obligation of each governmental entity to determine whether the require-
(b) Uninsured Deposits With Us ments for deposit insurance have been met. Neither we, Promontory, not the insured
Funds held in an account with us prior to placement using CDARS or prior to pay- Institution issuing CDs to you are responsible for uninsured losses resulting from
ment of CD interest and principal us may not be covered by FDIC insurance if, when placement of funds that are not eligible for deposit insurance.
aggregated with other deposits you maintain with us in the same capacity, the total (c) Deposit Insurance Payments
amount of your deposits in accounts with us exceeds the FDIC insurance limit appli- In the event that deposit insurance payments become necessary for your CDs, the
cable to your deposits with us. You should discuss with us the options for holding FDIC is required to pay the original principal amount plus accrued interest to the date
your funds prior to placement and for having the payments on the CDs deposited of the closing of the relevant Insured Institution, as prescribed by law, subject to the
with us or elsewhere. limits on FDIC deposit insurance coverage. No interest is earned on deposits from
(c) Insolvency of an Insured Institution the time an Insured Institution is closed until insurance payments are received. We
In the event an Insured Institution approaches insolvency or becomes insolvent, the will notify you if we receive any payments from the FDIC with respect to your CDs.
Insured Institution may be placed in a regulatory conservatorship or receivership in As an alternative to a direct deposit insurance payment from the FDIC, the FDIC
which the FDIC is typically appointed as conservator or receiver. The FDIC may may transfer the insured deposits of an insolvent institution to a healthy institution.
thereafter pay off the CDs issued by that Insured Institution prior to maturity or trans- Subject to insurance verification requirements and the limits on FDIC deposit insur-
fer the CDs to another insured depository institution. If the CDs are transferred to ance coverage, the healthy institution may assume your CDs under their original
another institution, you may be offered a choice of retaining the CDs at a lower inter- terms or offer you a choice between either receiving payment of the CDs or maintain-
est rate or having the CDs paid off. See Section 5 below, “FDIC Insurance ing the deposits at a different rate. We will advise you of your options in the event of
Information.” a deposit transfer.
(d) Reinvestment Risk As with all federally insured deposits, if it becomes necessary for federal deposit
If your CD is paid prior to maturity as a result of the issuing Insured Institution’s insol- insurance payments to be made on the CDs, there is no specific time period during
vency or a voluntary early withdrawal (see Section 3(h) above, “Additions and Early which the FDIC must make the insurance payments available. Neither we nor
Withdrawal”), you may not be able to reinvest your funds at the same interest rate Promontory will be obligated to make any payments to you in satisfaction of a loss
that you received on the original CD. Neither we nor Promontory is responsible to you might incur as a result of (i) a delay in insurance payouts applicable to a CD, (ii)
you for any losses you may incur as a result of a lower interest rate on an invest- your receipt of a decreased interest rate on an investment replacing a CD that is
ment replacing your CD. repaid prior to its scheduled maturity, or (iii) payment in cash of the principal and
(e) Investment Restrictions accrued interest of a CD prior to maturity in connection with the liquidation of an
If you are subject to restrictions with respect to the placement of funds in depository Insured Institution or the assumption of all or a portion of its deposit liabilities. Also,
institutions, it is your responsibility to determine whether the placement of your funds neither we nor Promontory will be obligated to advance funds to you prior to payment
by us using CDARS satisfies those restrictions. For example, when placing funds for from the FDIC.
deposit using CDARS, some governmental unit depositors may be required by law or
policy to place funds only using a CDARS Reciprocal Transaction, in which the insti- Section 6. Responsibility to Monitor Deposits at Insured Institutions; Publicly
tution placing the funds for deposit using CDARS receives funds for deposit in an Available Information
amount equal to the amount of funds that was placed by the depositor using CDARS Funds we submit for placement on your behalf on any Settlement Date are placed in
with respect to the corresponding Order Date. When we place funds for deposit CDs at enough different Insured Institutions to prevent the principal amount and any
using a CDARS One-Way Transaction, we will not receive matching funds using interest to accrue over the term of each CD placed on that Settlement Date from
CDARS. exceeding the FDIC insurance limit. It is your responsibility, however, to monitor the
total amount of deposits that you hold with each Insured Institution in order for you to
Section 5. FDIC Insurance Information determine the extent of FDIC deposit insurance coverage available to you on
(a) Deposit Insurance Coverage deposits at that Insured Institution, including the CDs issued through CDARS. See
In general, all accounts and deposits that you maintain with an Insured Institution in Section 5 above, “FDIC Insurance Information,” for more information on FDIC insur-
the same insurable capacity (whether you are acting directly or through an intermedi- ance coverage. The Insured Institution at which a deposit is made is responsible for
ary) would be aggregated for purposes of the applicable FDIC insurance limit. the full amount deposited with it, and neither we nor Promontory is responsible for
Insurable capacities include individual accounts, joint accounts and individual retire- any insured or uninsured portion of any CD or any other deposit.
ment accounts. A tax identification number is not evidence of, and does not estab- Publicly available financial information concerning the proposed and proposed
lish, an insurable capacity that is separate from another tax identification number alternate Insured Institutions can be obtained by you at the website of the National
used by the same person or entity. Upon request, we will provide you with a copy of Information Center of the Federal Reserve System maintained at www.ffiec.gov/nic/.
the FDIC brochure “Your Insured Deposits – FDIC’s Guide to Deposit Insurance Neither we nor Promontory guarantees the financial condition of any Insured
Coverage.” You may also obtain information about deposit insurance coverage by Institution or the accuracy of any publicly available financial information about the
contacting the FDIC, Office of Consumer Affairs, by letter (550 17th Street, N.W., Insured Institution.
Washington, D.C. 20429), by telephone (877-275-3342, 800-925-4618 (TDD) or 202-
942-3100), or by e-mail (dcainternet@fdic.gov), or by visiting the FDIC website at Section 7. Confidentiality of Information
www.fdic.gov. You may wish to seek advice from your own attorney concerning We will provide your name, tax identification number and other pertinent identifying
FDIC insurance coverage of deposits held in more than one capacity. information to Promontory, our sub-custodian, and other parties providing services in
FDIC deposit insurance coverage applies to the principal and accrued interest connection with the placement of your funds and the issuance and holding of your
on all CDs and other deposit accounts maintained by you in the same insurable CDs. We may also release such information to (i) an Insured Institution that has
capacity at a single Insured Institution. The records maintained by the Insured issued a CD to you, but only to the extent necessary to comply with any applicable
Institution, us and our sub-custodian regarding ownership of CDs will be used to law, rule or regulation or a judicial order, and (ii) the FDIC in connection with a claim
establish your eligibility for federal deposit insurance payments in respect of CDs for deposit insurance on your CD. You hereby consent to the release of that informa-
issued through CDARS. In addition, you could be required to provide certain docu- tion to and its use by (a) Promontory, our sub-custodian, and other parties providing
mentation to the FDIC before insurance payments would be released to you. services in connection with the placement of your funds and the issuance and cus-
(b) Government Unit Deposits todying of your CDs, (b) Insured Institutions that have issued CDs to you to the
The requirements for deposit insurance coverage of the deposits of the United States extent necessary to comply with any applicable law, rule, regulation or judicial order,
government, state, county and municipal governments and their political subdivi- and (c) the FDIC in connection with a claim for deposit insurance on your CDs. The
sions, the District of Columbia and the Commonwealth of Puerto Rico are specifically information will not be disclosed to other Insured Institutions except as set forth here-
set forth in regulations of the FDIC (12 C.F.R. 330.15). In general, such deposits will in and will not be used by Promontory, our sub-custodian, or any other parties to
04/07 DI 4
whom we release the information for any other purpose except as set forth herein or SCHEDULE 1
directed by you. Nothing in this section shall be deemed to prevent us from disclos-
ing information to a third party if permitted or required by law. INITIAL LIST OF INSURED INSTITUTIONS AT WHICH YOU DO NOT WANT TO
Section 8. Disputes MAKE A DEPOSIT (ATTACH ADDITIONAL PAGES AS NECESSARY)
Any disputes arising out of or in connection with this agreement will be governed by
the dispute resolution, arbitration, choice of law, venue, waiver of jury trial, and costs Please include the city and state of the institution’s main office (rather than the city
related to dispute provisions, if any, contained in your Custodial Agreement with us and state of a branch location). You may include the institution’s routing number
under which we act as custodian for your CDs. and/or FDIC certificate number, if you have this information.
Section 9. Miscellaneous ____________________________________________________________________
Any information we are required to deliver to you pursuant to this agreement may be Name of Institution City and State Routing or FDIC No.
given to you by mail, facsimile or other electronic transmission.
This agreement:
constitutes the entire agreement between us relating to the placement of ____________________________________________________________________
deposits through CDARS and the other matters contained herein, Name of Institution City and State Routing or FDIC No.
supersedes all prior contracts or agreements relating to the placement of funds
through CDARS, whether oral or written, and
may not be amended by any oral representation made or oral agreement ____________________________________________________________________
reached after the execution of this agreement. Name of Institution City and State Routing or FDIC No.
We may amend this agreement or any related document prospectively by modi-
fying or rescinding any of its existing provisions or by adding any new provisions at
any time by sending written notice of the amendment to you. We may provide writ- ____________________________________________________________________
ten notice of an amendment to this agreement by means of a letter, an entry on your Name of Institution City and State Routing or FDIC No.
account statement or other means. Any amendment will be effective as of the date
established by us in the written notice of the amendment, subject to applicable law,
provided that any amendment may not become effective until ten days after the writ- ____________________________________________________________________
ten notice has been sent by us. Name of Institution City and State Routing or FDIC No.
This agreement is not assignable, in whole or in part, by either party except by
operation of law or as required by law.
The headings in this agreement are inserted for convenience and identification ____________________________________________________________________
only, and are not intended to describe, interpret, define or limit the scope or intent of Name of Institution City and State Routing or FDIC No.
this agreement or any clause hereof.
By signing below, you acknowledge that you have received this agreement, that you
have read and understood this agreement and that you were given the opportunity to ____________________________________________________________________
ask us any questions you may have had with respect to this agreement, the transac- Name of Institution City and State Routing or FDIC No.
tions contemplated by it, the CDs and FDIC insurance coverage of the CDs and
deposits maintained with us.
SCHEDULE 2
xxx Check this box if you are a governmental unit or other depositor and
wish your funds to be placed only through CDARS Reciprocal IMPORTANT TIMES AND DEADLINES IN CONNECTION WITH THE PLACEMENT
Transactions. OF YOUR FUNDS
DEPOSITOR(S) This schedule contains important times and deadlines with respect to the placement
of your funds. These times may change from time to time or on any particular Order
Name of Depositor: ____________________________________________ Date or Order Allocation Date (which are currently the same business day), and we
X By: ________________________________________________________ will inform you of any change in times, as applicable, before you submit your funds
Name: for placement. You may also obtain information about any changes to times set forth
Title: in paragraphs 2, 3 and 4 below or about any scheduling change resulting in the
Depositor Tax ID or Other Depositor ID: ____________________________ Order Allocation Date taking place on the business day immediately following an
ID Type: _____________________________________________________ Order Date at www.CDARS.com/products.
1. Time and day by which your request to have your funds placed must be
Name of Depositor: ____________________________________________
submitted: 4:30 PM Tuesday
_______________ on ________________ .
By: _________________________________________________________
Name:
Title: 2. Time and day by which we must submit your Order to Pomontory: 1:00 p.m. ET
Depositor Tax ID or Other Depositor ID: ____________________________ on the Order Date.
ID Type: _____________________________________________________
3. Time and day at or after which you may obtain the list of names of the Insured
Signed this ______________________ day of _______________ , 200___ Institutions at which your funds are proposed to be placed: 3:00 p.m. ET on the
Order Allocation Date.
DEPOSITORY INSTITUTION
Flagstar Bank, FSB
____________________________________________________________ 4. Time and day by which you must inform us of the name or names of any
(Print Name of Institution) proposed Insured Institution at which you do not want to make a deposit:
By: _________________________________________________________ 4:00 p.m. ET on the Order Allocation Date.
Name:
Title:
5. Time and day by which we must have your available funds on account:
by 12:00PM Thursday
__________________ on _____________________.
Acknowledged this ___________________ day of ____________ , 200___
CDARS, Certificate of Deposit Account Registry Service, One-Way and Reciprocal are registered service marks of Promontory Interfinancial Network, LLC. 04/07 DI 5
SUPPLEMENT TO THE CDARS DEPOSIT PLACEMENT AGREEMENT
The purpose of this agreement is to supplement the CDARS Deposit Placement Agreement (the
“DPA”) entered into between you, the undersigned, and Flagstar Bank, FSB (“us” or “we”) on
____________________. Pursuant to section 3(g) of the DPA, each time you agree to placement
of funds under the DPA you also agree that, by the time specified in paragraph 5 of Schedule 2 of
the DPA, you will have in an account with us immediately available funds equal to the amount of
funds you have informed us that you are seeking to place.
By your execution of this agreement, you further agree that in the event you fail to have such
amount in an account with us at such time, you will be obligated to pay to us the amount of the
early withdrawal penalties applicable to the CDs that would have been issued to you if your funds
had been on account with us in accordance with the DPA. You authorize us to deduct the amount
of these early withdrawal penalties from available funds on deposit with us, if any. If you do not
have a sufficient amount of funds on deposit with us to pay the full amount of these penalties, you
will be obligated to pay to us the remaining amount of such penalties for which you are obligated
under this agreement within 5 business days of the time specified in paragraph 5 of Schedule 2
of the DPA.
You further agree that this agreement is deemed to be an amendment to the DPA in accordance
with section 9 of the DPA.
DEPOSITOR (S)
Name of Depositor: ____________________________
By: ______________________________
Name:
Title:
By: ______________________________
Name:
Title:
Signed this __________ day of __________ 20__
DEPOSITORY INSTITUTION
____________________________________
Flagstar Bank, FSB
By: ______________________________
Name:
Title:
Acknowledged this __________ day of __________, 20__
Updated 11/06
Overview of the CDARS Deposit Placement Agreement
The CDARS Deposit Placement Agreement (DPA) is a legal document that you will enter into with us before
we place your funds using the CDARS service. For your convenience, a summary of some of the DPA's
provisions is provided below. Please note, however, that this summary is not a contract, is not legally binding
on us, and is not intended to be a comprehensive summary of the DPA. You should read the DPA in its
entirety before signing it.
Principal points addressed in the DPA include: • Early withdrawal of any CD may be available, but
• Through an arrangement with Promontory may be subject to substantial penalties.
Interfinancial Network, LLC (“Promontory”), we
will place your funds in certificates of deposit • You will receive from us written confirmation that
(CDs) issued by other members of the your CDs have been issued and periodic account
Promontory Network. These placements will statements that will reflect your ownership of your
occur in increments of less than standard FDIC CDs. You will not receive physical certificates.
insurance maximum so that your investment will
be eligible for full FDIC insurance. • Funds held in an account with us pending
placement through CDARS or resulting from
• We will serve as your agent for placing funds in payments on CDs are subject to the FDIC
FDIC-insured institutions that are members of insurance limits applicable to your deposits
the Network. with us.
• We will act as your custodian with respect to CDs
CDARS ReciprocalSM transactions:
placed using CDARS. At maturity, your CDs will
• In a CDARS Reciprocal transaction, we will
not be automatically renewed or rolled over. You
receive “matching deposits” - meaning we will
may, however, ask us about resubmitting your
receive deposits from other FDIC-insured
funds for placement at maturity.
institutions equal to the amount of your
original deposit.
• We will not charge you a fee in connection with
CD placements.
• We will not receive fee income for engaging in
a Reciprocal transaction.
• CDs that are issued to you will bear interest rates
agreed upon by you and us.
Placement procedures include:
• You may select from the maturities available • We will inform you of the available dates and
through CDARS and interest payment terms at terms for placements.
the time we submit your order for placement.
Interest on your CDs will compound daily. • We will submit your placement request to
Promontory.
• Although you may not select which banks receive
your funds, you may identify banks where funds • You may review the list of institutions at which
should not be placed for any reason. For example, your funds are proposed to be placed, and notify
if you want your deposits to be eligible for full us between 3:00 p.m. and 4:00 p.m. ET on
FDIC insurance, you should identify any bank(s) Wednesday of any institutions at which you do not
where you currently have deposits as banks wish to make a deposit.
where funds should not be placed. (See Schedule
1 of the DPA.)
Overview of the CDARS Deposit Placement Agreement
Overview of the CDARS Deposit Placement Agreement
Funding options include:
• Although we will endeavor to place your funds on
• Funding by wire transfer for CDARS transactions a particular date, we may not be able to place
Fundingmade easyinclude: the following ways:
can be options by one of some or all of your funds as requested for that
• Although we will endeavor to inform your of the on
date. If this happens, we will place you funds
• Funding by wire transfer for CDARS transactions
1) SETTLEMENT DAY: Wire transfers will a particular date, we may not be ableplaced and
amount of your funds that will not be to place
can be made easy on one of settlement upon
be accepted by day the following ways: some or all of your funds resubmit yourfor that
you may request that we as requested unplaced
execution of a signed Early Withdrawal date. If this happens, we will inform you of the
funds on another day.
1) SETTLEMENT DAY: Wire transfers will
Notification and Unavailable Funds amount of your funds that will not be placed and
be accepted on file. of settlement upon
Supplement on day • you your responsibility to resubmitthe total amount
It is may request that we monitor your unplaced
execution of a signed Early Withdrawal funds on another day.
of deposits that you have at each bank in order to
Notification TO SETTLEMENT DAY: Wired
2) PRIOR and Unavailable Funds determine the extent of FDIC insurance coverage
Supplement on file. into a fully insured/non
funds can be placed • It is your responsibility to monitor the total amount
available to you at that bank.
interest bearing checking account or an of deposits that you have at each bank in order to
2) PRIOR TO SETTLEMENTaccount
interest bearing liquid savings DAY: Wired • determine the extent name, tax ID number, and
We will provide your of FDIC insurance coverage
funds can be placed into a FDIC.
insured up to $250,000 by fully insured/non available to you at that bank. Promontory and
other pertinent information to
interest bearing checking account or an other parties providing services in connection with
• Funding by check can liquid savings account
interest bearing be made under the • We CDARS service. You consent to the release of
the will provide your name, tax ID number, and
insured up to $250,000 by FDIC.
following funds availability schedule: other pertinent information to Promontory and
that information to Promontory and the other
other parties providing services in connection with
parties.
• Funding by check can be made under the
1) NON-LOCAL CHECK: Check must be the CDARS service. You consent to the release of
following funds availabilityprior to settlement date
presented Tuesday schedule: • that information to Promontory and the other
Promontory and the other parties receiving
and can be deposited into either a fully parties. information will not disclose the
depositor
1) NON-LOCAL CHECK: Check must be
insured/non interest bearing checking information for any purpose other than as
presented Tuesday prior to settlement date
account or a interest bearing liquid savings • Promontory and the other parties receiving
necessary in connection with placement of
and can insured up to $250,000 byfully
account be deposited into either a FDIC. depositor information will not disclose the
funds using CDARS.
insured/non interest bearing checking information for any purpose other than as
account or a interest bearing liquid savings
2) LOCAL CHECK: Check must be necessary in connection with placement of
account insured upthan Wednesday prior to
presented no later to $250,000 by FDIC. funds using CDARS.
settlement date and can be deposited as
2) LOCAL CHECK: Check must be
detailed above.
presented no later than Wednesday prior to
settlement date and can be deposited as
detailed above.
Some important points to keep in mind:
• You should compare the rates and features of
CDs (including CDs placed through the CDARS
Some importantinvestment alternatives.
service) to other points to keep in mind:
• You should compare the rates and features of
CDs (including CDs placed through the CDARS
service) to other investment alternatives.
CDARS, CDARS Reciprocal and CDARS One-Way are service marks of Promontory Interfinancial Network, LLC. 11.06
CDARS, CDARS Reciprocal and CDARS One-Way are service marks of Promontory Interfinancial Network, LLC. 11.06
Important Information Regarding
Certificate of Deposit Account Registry Service®
Welcome to the Certificate of Deposit Account Registry Service®, or CDARS®, provided
by Flagstar Bank. We have accepted your funds to be placed through the CDARS service
as described in the CDARS Deposit Placement Agreement. Flagstar Bank will act as
custodian for your Certificate of Deposits (CDs).
A new account notice will be emailed to you detailing the placement of your CDs at other
FDIC-insured financial institutions. A monthly statement will also be sent to you. Prior
to the maturity date you will receive an email informing you of the upcoming maturity of
your CDs. Your CDs will not automatically reinvest at maturity. There are no grace
days.
EARLY WITHDRAWAL PENALTY
If you withdraw the principal before the maturity date, a penalty will be charged to your
account for the days listed under “PENALTY” at simple interest. Penalty is waived upon
the death of a sole account holder or joint account holder of the CDs. Early withdrawal
of a CD may be made only in whole, not in part.
Your Deposit Placement Agreement provides important additional information regarding
your CDARS CDs. Please let us know if you have any questions about the placement of
your funds.
CD Term CD Term (in Days) Early Withdrawal Penalty
(in days of accrued interest)
4 Weeks 28 Days 28 Days
13 Weeks 91 Days 90 Days
26 Weeks 182 Days 90 Days
52 Weeks 364 Days 180 Days
2 Years 728 Days 360 Days
3 Years 1092 Days 540 Days
Legal name of Depositor:
Authorized Signature:
Date:
CDARS and Certificate of Deposit Account Registry Service are registered service marks of Promontory Interfinancial Network, LLC.
Date: July 27, 2010
To: Honorable Mayor and City Commissioners
From: Ann Marie Becker, City Clerk
RE: Liquor License Request
Harbour Towne Yacht Club
3425 Fulton Street
SUMMARY OF REQUEST: The Liquor Control Commission is seeking
local recommendation on a request from Harbour Towne Yacht Club for
a New Outdoor Service (2 Areas) and decrease the size of the existing
Outdoor Service (1 Area) to be held in conjunction with 2010 Club &
SDM Licensed Business with Outdoor Service (1 Area) and Dance
Permit located at 3425 Fulton Street, Muskegon, MI 49441.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
Commission Meeting Date: July 27, 2010
Date: July 20, 2010
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Approval of Contractor for Construction of House at
1543 Hoyt
SUMMARY OF REQUEST: To approve the contract with Mossy Oak Builders,
123 N. 8th, Fruitport, for the construction of the new home to be located at
1543 Hoyt for the cost of $89,300.
This new construction is being financed with Neighborhood Stabilization funds
from the Michigan State Housing Development Authority. After the new
construction is completed, the home will be marketed to any eligible owner
occupied homebuyer with a household income less than 120 percent of the
area median income. The City obtained the original house at 1543 Hoyt with
Neighborhood Stabilization Program funds.
The City received nine bids as listed on the attached spreadsheet.
FINANCIAL IMPACT: The funding for the project will be taken from the
Neighborhood Stabilization Program funds.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve for the Community and
Neighborhood Services office to develop a contract with Mossy Oak Builders
and direct the Mayor and Clerk to sign the contract. This is contingent upon
CNS receiving the additional NSP grant funding.
COMMITTEE RECOMMENDATION: None needed. The Citizen’s District
Council is aware of the Neighborhood Stabilization Program.
NSP NEW CONSTRUCTION BID RESULTS 7/19/2010
Name Address 1543 Hoyt Comments
2013 W Holton Whitehall
Rd Whitehall, 49461
Dave Kurtzhal 578-1803 894-6406 T - 109,245
DeRose Builders 7786 Wieczer Dr
Inc Whitehall, 49461
Dave or Matt 893-0025 206-4760 T - 104,905
301 S Second St
Gale Builders Inc Ferrysburg, 49409
Jeff Gale 616-846-4330 T - 123,450
Galloway Custom 800 Ellis Rd, #529,
Homes LLC Muskegon, 49441
Ellen Galloway 206-9296 206-2769 T - 112,900
18032 Hammond Bay Dr
Kramer Building Spring Lake, 49456
Jerry Kramer 616-846-9559 T - 106,950
Mossy Oak 123 N 8th
Builders Fruitport, 49415
Jeff Fisher 740-9367 T - 89,300
84 N Bock
Murphy & Sons Muskegon, 49442 total submitted $107,000, added total
LLC 206-1864 T - 106,650 actual 106,650
4392 Hall Rd
Specialty Builders Muskegon, 49442
John Andeson 788-3001 T - 112,800
Statewide 1720 Creston
Abatement Muskegon, 49445
Dave McQueen 744-7244 T - 184,800
Page 1 of 1 C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\NSP New Const Bid Results 7-19.xls
Date: July 14, 2010
To: Honorable Mayor and City Commission
From: Department of Public Works
RE: Farmers Market ADA Restroom Renovations
SUMMARY OF REQUEST: To approve a proposal from Clifford Buck
construction to renovate the Farmers Market restrooms to make them ADA
compliant for the price quoted of $ 21,743.00 and to authorize staff to enter
into a contractual agreement.
FINANCIAL IMPACT: Project expenditures of $17,897.00 would come
from the Farmers Market Improvement Fund and $3,846.00 would come
from the 2011 Farmers Market Operating Budget.
BUDGET ACTION REQUIRED: NONE
STAFF RECOMMENDATION: To approve the proposal from Clifford
Buck Construction
FARMERS MARKET ADA RESTROOM RENOVATION PROPOSALS
15-Jul-10
CLIFFORD BUCK MUSKEGON CONSTRUCTION MUSKEGON QUALITY BUILDERS TRIDONN CONSTRUCTION
500 IRWIN AVE 111 W.WESTERN AVE 2837 PECK STREET 1461 EVANSTON AVE
MUSKEGON MI 49442 MUSKEGON MI 49443 MUSKEGON MI 49444 MUSKEGON MI 49442
PROJECT COST $21,743.00 $46,000.00 $27,000.00 $26,990.00
Commission Meeting Date: July 27, 2010
Date: July 15, 2010
To: Honorable Mayor & City Commission
From: Planning & Economic Development Department
RE: Ice Mountain Grant- Ryerson Creek Culvert
Replacement
SUMMARY OF REQUEST: The current tube culvert under Seaway Drive (see map
attached) is failing. The City has the opportunity to coordinate with the West
Michigan Shoreline Development Commission (WMSRDC) to replace the culvert in
an environmentally sensitive way, by providing a fish-passage friendly box culvert (as
opposed to the current tube that goes underground), as well as provide additional
wetland habitat improvements. The project will “daylight” the stream between Yuba
and Seaway Drive, and restore stormwater detention and water quality and habitat
functions.
FINANCIAL IMPACT: The total project amount (including construction and
engineering costs, as well as habitat restoration) is $516,181. WMSRDC will provide
$436,930 through the NOAA Great Lakes Habitat Agreement grant funds. The City
will provide up to $40,000 in matching funds, the Ice Mountain Grant request is for
$30,000 and the remaining funds will be sought through other grant sources.
BUDGET ACTION REQUIRED: In the 2011-12 City budget, up to $40,000 will be
designated through “street funds” for matching funds for the project.
STAFF RECOMMENDATION: To approve submittal of the Ice Mountain Grant in the
amount of $30,000 for the Ryerson Creek Culvert Replacement and authorize the
Mayor and Clerk to sign documents necessary for the grant submittal and
acceptance, if the grant is approved.
NOAA Great Lakes Habitat Restoration Program
West Michigan Shoreline Regional Development Commission
City of Muskegon
Ryerson Creek Fish Passage and Riparian Corridor Restoration
The City of Muskegon and West Michigan Shoreline Regional Development Commission
(WMSRDC) will work with professional engineers and project stakeholders (United Way of the
Lakeshore, Jackson Hill Neighborhood Association) to develop an engineered, ecological
restoration design and to construct aquatic habitat restoration improvements on Ryerson Creek,
between its mouth at Muskegon Lake near the Lakeshore Trail bike path and Green Acres Park,
in the area immediately upstream of the Yuba Street crossing.
The project will design and remove a failing tube culvert under Seaway Drive and replace it with
a fish-passage friendly box culvert. It will “daylight” the tubed stream between Yuba and
Seaway Drive, and restore stormwater detention and water quality and habitat functions. The
project will further improve stormwater management by restoring an existing wetland retention
floodplain at Green Acres Park. The project will restore degraded, riparian habitat with
bioengineered, native plant techniques at several additional sites located along the lower Ryerson
Creek stream corridor between Seaway Drive and Clay Street. The overall length of improved
stream corridor habitat is 2,720 ft.
The project is located within the City of Muskegon and the Muskegon Lake Area of Concern
(AOC).
Restoration Activities and Habitat Improvements:
• Restore the Ryerson Creek riparian corridor by restoring a buffer and in-stream habitat
where unnatural fill materials and manicuring have degraded habitat along a 400 ft.
stretch at Green Acres Park.
• Conserve and enhance wetland habitat on one acre of the City of Muskegon’s vacant,
mowed, floodplain property along Ryerson Creek at Green Acres Park.
• Daylight and restore approximately 140 ft of Ryerson Creek between Moses Jones and
Yuba Street.
• Replace a failing tube culvert with a 150 ft box culvert at Ryerson Creek and Moses
Jones Parkway (Muskegon Avenue).
• Improve fish and wildlife habitat along 282 ft of stream buffer on property owned by the
United Way by installing native plants to absorb stormwater runoff and minimize
erosion.
• Restore habitat on 100 ft of riparian corridor at former Rag & Metal property on the north
side of Ryerson Creek, downstream at Shoreline Drive, by removing fill material and
planning native trees along the stream to provide bank stabilization, shading, cooling and
structure.
Acres of Habitat Restoration Treatment:
• Rag & Metal property = 0.25 acre / 100 ft
• United Way property = 0.25 acre / 282 ft
• Green Acres / City of Muskegon property = 1 acre / 400 ft
• Habitat restoration associated with culvert replacement = 150 ft
• Daylighting of Ryerson Creek between Yuba and Moses Jones = 0.5 acre / 140 ft
Total Acres of Treatment: 2 acres
Total Linear Feet of Stream Corridor Treatment: 1072 ft
Overall habitat impact: 2,720 ft
Construction Costs:
Culvert replacement - $275,000
Daylighting of Ryerson Creek - $136,222
Riparian Corridor Habitat Restoration (excavation, disposal, native plantings) – $57,000
Construction Subtotal: $468,222
Engineering Costs:
Permits / Soil Analysis - $5,000
Engineering Design - $18,411 (3%)
Construction Oversight - $12,274 (2%)
Mobilization and Insurance - $12,274 (2%)
Engineering Subtotal: $47,959
Total Construction and Engineering: $516,181
Federal share: $436,930
Non-federal share: $79,251 (cash and/or in-kind): Ice Mountain Grant, City of
Muskegon, Other Grants/In-Kind
(Additional non-federal match for project management and administration to be
provided by WMSRDC: $9,365)
Commission Meeting Date: July 27, 2010
Date: July 20, 2010
To: Honorable Mayor & City Commission
From: Community and Neighborhood Services
Department
RE: Approval of Contractor for Lead Abatement and
Rehabilitation of CNS Homes
SUMMARY OF REQUEST: To approve the following rehabilitation contracts:
Murphy Bros, 84 N. Bock, Muskegon, for the lead abatement of 605 Jackson
in the amount of $9,200
Murphy Bros, 84 N. Bock, Muskegon, for the rehabilitation of 1080 E. Laketon
in the amount of $34,350
Gray Space, 601 Amity, Muskegon, for the rehabilitation of 2265 Lincoln in the
amount of $50,620
Statewide Abatement, 1720 Creston, Muskegon, for the rehabilitation of 1891
Wood in the amount of $72,000
We are not accepting the bids we received for 1644 Division, 1500 Leahy and
1733 Manz and will rebid these projects.
The lead abatement and rehabilitation is being financed with Neighborhood
Stabilization funds from the Michigan State Housing Development Authority.
After the total rehabilitation is completed, the houses will be marketed to any
eligible owner-occupied homebuyer with a household income less than 120
percent of the area median income.
The City received additional bids as listed on the attached spreadsheet. In
some instances, the lowest bid is not being recommended based on the
amount of knowledge and experience required for some projects.
FINANCIAL IMPACT: The funding for the project will be taken from the
money awarded to the City of Muskegon through the Neighborhood
Stabilization Program.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: To approve for the Community and
Neighborhood Services office to develop a contract with these contractors and
direct the Mayor and Clerk to sign the contract. This is contingent upon CNS
receiving the additional NSP grant funding.
COMMITTEE RECOMMENDATION: None required. The Citizen’s District
Council is aware of the next phase of rehabs under the Neighborhood
Stabilization Program.
NSP PHASE 2 REHAB BID RESULTS 7/19/2010
1080 E
Name Address 605 Jackson Laketon 2265 Lincoln 1891 Wood
Galloway Custom 800 Ellis Rd, #529, bid submitted bid submitted bid submitted
Homes LLC Muskegon, 49441 after 12 noon after 12 noon after 12 noon
Ellen Galloway 206-9296 206-2769 deadline deadline deadline
601 Amity St
Gray Space Muskegon, 49442
Curtis Holden 955-9701 T - 50,620
Mossy Oak 123 N 8th bid submitted bid submitted bid submitted bid submitted
Builders Fruitport, 49415 after 12 noon after 12 noon after 12 noon after 12 noon
Jeff Fisher 740-9367 deadline deadline deadline deadline
84 N Bock
Murphy & Son Muskegon, 49442
Const 206-1864 T - 9,200 T - 34,350 T - 56,100 T - 51,665
4392 Hall Rd
Specialty Builders Muskegon, 49442
John Andeson 788-3001 T - 15,600 T - 40,975 T - 69,000 T - 54,750
Statewide 1720 Creston
Abatement Muskegon, 49445
Dave McQueen 744-7244 T - 17,800 T - 46,875 T - 89,000 T - 72,000
6263 Dalson Rd
Twin Lake, 49457
Tim Weberg 206-1014 T - 36,975 T - 58,250 T - 52,300
We are not considering the bids received after the 12 noon deadline on July 19.
We are not accepting any of the bids received for 1644 Division, 1500 Leahy and 1733 Manz
and they will be rebid.
C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\NSP Phase 2 Rehab Bid Results 7-19 (2).xls
AGENDA ITEM NO. ___________________
CITY COMMISSION MEETING _________________________
TO: Honorable Mayor and City Commissioners
FROM: Bryon L. Mazade, City Manager
DATE: July 23, 2010
RE: City Charter Amendments – Tax Levy
SUMMARY OF REQUEST:
To consider resolutions to place City Charter amendments to limit the ad valorem tax levy
to 10 mills and to authorize an additional tax levy of 1.0 mills to finance street construction,
repairs, and maintenance..
FINANCIAL IMPACT:
The amendments will provide additional funding for city streets.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
None.
COMMITTEE RECOMMENDATION:
None.
pb\AGENDA\CITY CHARTER AMNDMNTS – TAX LEVY 072310
CITY OF MUSKEGON
RESOLUTION NO.______
A Resolution of the City of Muskegon City Commission to propose for adoption by the
voters of the City of Muskegon an Amendment to the City Charter concerning an additional
millage for street improvements and street maintenance.
The City Commission of the City of Muskegon resolves the following amendment to the
City Charter shall, upon approval of the Governor, be submitted to the Electors of the City
in accordance with the Home Rule Cities Act of the State of Michigan
Proposed Charter Amendment
City of Muskegon
Amend Article XI, by adding Section 7 to read as follows:
ARTICLE XI. TAXATION
Section 7 Taxation; General Powers.
The City shall have the power to assess taxes and levy and collect rents,
tolls and excises. The annual ad valorem tax levy shall not exceed ten (10) mills
of the assessed valuation of all real and personal property subject to taxation in
the City as equalized by the State, exclusive of any levy required for the payment
of principal and interest on City indebtedness or on outstanding bonds of the City
and exclusive of any levy authorized by statute to be made beyond the Charter tax
rate limitation.
BE IT FURTHER RESOLVED that the following language be placed upon the ballot at
the next election in accordance with the Home Rule Cities Act:
CHARTER AMENDMENT
Shall Section 7 of Article XI of the City Charter be adopted to authorize the levy
of 10 mills on real and personal property situated in the City, which is the current
limitation, commencing with the December 1, 2010 levy, and that these
provisions be made an express part of the City Charter?
BE IT FURTHER RESOLVED that the proposed charter amendment, as adopted by the
City Commission on __________ ___, ____, be published in the Muskegon Chronicle, and a
reasonable number of copies made available to the public before the said election.
This resolution adopted:
C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\G97963-Charter tax limitation.doc
AYES: _______________________________________________________________________
_____________________________________________________________________________
NAYES: ______________________________________________________________________
_____________________________________________________________________________
ABSENT: _____________________________________________________________________
CITY OF MUSKEGON
By___________________________
Ann Marie Becker, City Clerk
STATE OF MICHIGAN
COUNTY OF MUSKEGON
I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a
meeting of the city commission members of the City of Muskegon, Michigan, held on the ____
day of ________, 2010, and that the minutes of the meeting are on file in the office of the City
Clerk and are available to the public. Public notice of the meeting was given pursuant to and in
compliance with Act 267, Public Acts of Michigan, 1976.
______________________________
Ann Marie Becker, City Clerk
C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\G97963-Charter tax limitation.doc
CITY OF MUSKEGON
RESOLUTION NO.______
A Resolution of the City of Muskegon City Commission to propose for adoption by the
voters of the City of Muskegon an Amendment to the City Charter concerning an additional
millage for street improvements and street maintenance.
The City Commission of the City of Muskegon resolves the following amendment to the
City Charter shall, upon approval of the Governor, be submitted to the Electors of the City
in accordance with the Home Rule Cities Act of the State of Michigan
Proposed Charter Amendment
City of Muskegon
Amend Article XI, by adding Section 8 to read as follows:
ARTICLE XI. TAXATION
Section 8. Taxation; Street Construction and Maintenance.
In addition to the limitation established in Article XI, Section 7, the City shall
have the power to levy an ad valorem tax in an amount not to exceed 1 mill of the
taxable valuation of all such real and personal property from December 1, 2010,
for the financing of street construction, repair, and maintenance.
BE IT FURTHER RESOLVED that the proposed addition of Section 8 would be
applicable only if the proposed Charter Amendments adding Sections 7 and 8 are adopted by the
electorate.
BE IT FURTHER RESOLVED that the following language be placed upon the ballot at
the next election in accordance with the Home Rule Cities Act:
CHARTER AMENDMENT
Shall Section 8 of Article XI of the City Charter be adopted to authorize the levy
of 1.0 mills on real and personal property situated in the City for the purpose of
financing street construction, repair and maintenance, commencing with the
December 1, 2010 levy, in addition to the current tax limitation, and that these
provisions be made an express part of the City Charter? (This Charter
amendment is contingent upon adoption of the Charter amendment adding Section
7 to Article XI.)
C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\G83596-Charter Amendment raise tax l.doc
BE IT FURTHER RESOLVED that the proposed charter amendment, as adopted by the
city commission on __________ ___, ____, be published in the Muskegon Chronicle, and a
reasonable number of copies made available to the public before the said election.
This resolution adopted:
AYES: _______________________________________________________________________
_____________________________________________________________________________
NAYES: ______________________________________________________________________
_____________________________________________________________________________
ABSENT: _____________________________________________________________________
CITY OF MUSKEGON
By___________________________
Ann Marie Becker, City Clerk
STATE OF MICHIGAN
COUNTY OF MUSKEGON
I hereby certify that the foregoing is a true and complete copy of a resolution adopted at a
meeting of the city commission members of the City of Muskegon, Michigan, held on the ____
day of ________, 2010, and that the minutes of the meeting are on file in the office of the City
Clerk and are available to the public. Public notice of the meeting was given pursuant to and in
compliance with Act 267, Public Acts of Michigan, 1976.
______________________________
Ann Marie Becker, City Clerk
C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\G83596-Charter Amendment raise tax l.doc
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